# EDGAR Filing Document

**Accession Number:** 0001866030
**File Stem:** 0001493152-23-009101
**Filing Date:** 2023-3
**Character Count:** 1115958
**Document Hash:** bc642def8e0c3ff89e166bef88cac194
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-009101.hdr.sgml**: 20230327

**ACCESSION NUMBER**: 0001493152-23-009101

**CONFORMED SUBMISSION TYPE**: 20-F

**PUBLIC DOCUMENT COUNT**: 235

**CONFORMED PERIOD OF REPORT**: 20221231

**FILED AS OF DATE**: 20230327

**DATE AS OF CHANGE**: 20230327

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** A2Z Smart Technologies Corp
- **CENTRAL INDEX KEY:** 0001866030
- **STANDARD INDUSTRIAL CLASSIFICATION:** GENERAL INDUSTRIAL MACHINERY & EQUIPMENT, NEC [3569]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 20-F
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-40472
- **FILM NUMBER:** 23764909

**BUSINESS ADDRESS:**
- **STREET 1:** 559 BRIAR HILL AVENUE,
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5N 1N1
- **BUSINESS PHONE:** 1 647 558 5564

**MAIL ADDRESS:**
- **STREET 1:** 559 BRIAR HILL AVENUE,
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M5N 1N1

?xml version="1.0" encoding="utf-8"?

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 20-F**

**(Mark One)**

**☐** **REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934**

**OR**

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

**For the fiscal year ended December 31, 2022**

**OR**

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

**For the transition period from &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to**

**OR**

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

**Date of event requiring this shell company report** 

**Commission file number 001-40472**

**A2Z SMART TECHNOLOGIES CORP.**

**(Exact name of Registrant as specified in its charter)**

**N/A**

**(Translation of Registrant's name into English)**

**British Columbia**

**(Jurisdiction of incorporation or organization)**

**1600-609 Granville Street**

**Vancouver, British Columbia V7Y 1C3 Canada**

**(Address of principal executive offices)**

**Bentsur Joseph**

**Chief Executive Officer**

**1600-609 Granville Street**

**Vancouver, British Columbia V7Y 1C3 Canada**

**Tel: (647) 558-5564**

**(Name, telephone, email and/or facsimile number and address of Company contact person)**

**Securities registered or to be registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| **Common Shares** | **AZ** | **The Nasdaq Stock Market LLC** |

---

**Securities registered or to be registered pursuant to Section 12(g) of the Act:**

**None**

**(Title of Class)**

**Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:**

**None** 

**(Title of Class)**

Indicate the number of outstanding shares of each of the issuer's classes of capital or common stock as of the close of the period covered by the Annual Report: At December 31, 2022, 30,945,322 common shares were issued and outstanding.

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

If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. ☐ Yes ☒ No

Note—checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those sections.

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

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

Large Accelerated Filer ☐ Accelerated Filer ☐ Non-Accelerated Filer ☒ 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 13(a) of the Exchange Act. ☐

† The term "new or revised financial accounting standard" refers to any update issued by the Financial Accounting Standards Board to its Accounting Standards Codification after April 5, 2012.

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

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

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

Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:

U.S. GAAP ☐ International Financial Reporting Standards as issued by the International Accounting Standards Board ☒ Other ☐

If "Other" has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow. ☐ Item 17 ☐ Item 18

If this is an Annual Report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

(APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. ☐ Yes ☐ No

**A2Z SMART TECHNOLOGIES CORP.**

**Table of Contents**

---

| | | |
|:---|:---|:---|
| [**INTRODUCTION**](#ed_001) | [**INTRODUCTION**](#ed_001) | 3 |
| [**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**](#ed_002) | [**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**](#ed_002) | 3 |
| [**PART I**](#ed_003) | [**PART I**](#ed_003) | 6 |
|  | [ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS](#ed_004) | 6 |
|  | [ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE](#ed_005) | 6 |
|  | [ITEM 3. KEY INFORMATION](#ed_006) | 6 |
|  | [ITEM 4. INFORMATION ON THE COMPANY](#ed_007) | 27 |
|  | [ITEM 4A. UNRESOLVED STAFF COMMENTS](#ed_008) | 35 |
|  | [ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS](#ed_009) | 35 |
|  | [ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES](#AR_001) | 48 |
|  | [ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS](#AR_002) | 55 |
|  | [ITEM 8. FINANCIAL INFORMATION](#AR_003) | 57 |
|  | [ITEM 9. THE OFFER AND LISTING](#AR_004) | 57 |
|  | [ITEM 10. ADDITIONAL INFORMATION](#AR_005) | 57 |
|  | [ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](#AR_006) | 66 |
|  | [ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES](#AR_007) | 68 |
| [**PART II**](#AR_008) | [**PART II**](#AR_008) | 68 |
|  | [ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES](#AR_009) | 68 |
|  | [ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS](#AR_010) | 69 |
|  | [ITEM 15. CONTROLS AND PROCEDURES](#AR_011) | 69 |
|  | [ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT](#AR_012) | 70 |
|  | [ITEM 16B. CODE OF ETHICS](#AR_013) | 70 |
|  | [ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES](#AR_014) | 70 |
|  | [ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES](#AR_015) | 71 |
|  | [ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS](#AR_016) | 71 |
|  | [ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT](#AR_017) | 71 |
|  | [ITEM 16G. CORPORATE GOVERNANCE](#AR_018) | 71 |
|  | [ITEM 16H. MINE SAFETY DISCLOSURE](#AR_019) | 72 |
|  | [ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](#AR_020) | 72 |
| [**PART III**](#AR_021) | [**PART III**](#AR_021) | 72 |
|  | [ITEM 17. FINANCIAL STATEMENTS](#AR_022) | 72 |
|  | [ITEM 18. FINANCIAL STATEMENTS](#AR_023) | 72 |
|  | [ITEM 19. EXHIBITS](#AR_024) | 72 |
|  | [EXHIBIT INDEX](#AR_025) | 72 |
| [**SIGNATURES**](#AR_026) | [**SIGNATURES**](#AR_026) | 73 |
| [**FINANCIAL STATEMENTS**](#AR_027) | [**FINANCIAL STATEMENTS**](#AR_027) | **F-**1 |

---

**INTRODUCTION**

Unless otherwise indicated, all references in this Annual Report on Form 20-F to "A2Z," "we," "our," "us," "the company" or similar terms refer to A2Z Smart Technologies Corp. and its consolidated subsidiaries. We publish our consolidated financial statements in US dollars. In this Annual Report, unless otherwise specified, all references to "$" or "US$" means to the lawful currency of the United States, to "CAD$" to the lawful currency of Canada and to "NIS" are to lawful currency of Israel.

This Annual Report on Form 20-F contains our audited consolidated financial statements and related notes for the years ended December 31, 2022, 2021 and 2020 ("Annual Financial Statements"). Our Annual Financial Statements have been prepared in accordance with International Financial Reporting Standards ("IFRS"), as issued by the International Accounting Standards Board ("IASB").

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This Annual Report contains forward-looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, and other future conditions. Forward-looking statements can be identified by words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "predict," "project," "target," "potential," "will," "would," "could," "should," "continue," and other similar expressions, although not all forward-looking statements contain these identifying words. These forward-looking statements include all matters that are not historical facts. They appear in many places throughout this Annual Report and include statements regarding our intentions, beliefs or current expectations concerning, among other things, our results of operations, financial condition, liquidity, business prospects, growth, strategies, expectations regarding industry trends and the size and growth rates of addressable markets, our business plan and growth strategies, including plans for expansion to new markets and new products, and the industry in which we operate.

Risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking statements contained herein include:

● The Company has incurred significant losses and there can be no assurance when, or if, the Company will achieve or maintain profitability.

● The Company expects that it will need to raise additional capital to meet the Company's business requirements in the future, which is likely to be challenging, could be highly dilutive and may cause the market price of the common shares to decline.

● The Company's business is subject to risks arising from a widespread outbreak of an illness or any other communicable disease, or any other public health crisis, such as the COVID-19 pandemic, which has impacted and could continue to impact the business.

● Failure to effectively develop and expand the Company's sales and marketing capabilities could harm the ability to grow the business and achieve broader market acceptance of the Company's products.

● The Company expects the sales cycle to be long and unpredictable and require considerable time and expense before executing a customer agreement, which may make it difficult to project when, if at all, the Company will obtain new customers and when the Company will generate revenue from those customers.

● If the Company is not able to enhance the brand and increase market awareness of the Company and products, then the business, results of operations and financial condition may be adversely affected.

● If the Company does not develop enhancements to the technology and introduce new products that achieve market acceptance, the business, results of operations and financial condition could be adversely affected.

● The technology markets in which the Company competes are both subject to rapid technological change and, to compete, the Company must continually enhance its products and services.

● The Company's growth depends, in part, on the success of the strategic relationships with third parties.

● The Company's future profitability depends, in part, on subcontractor and supplier performance and financial viability as well as component availability and pricing.

● Information technology system failures or breaches of the Company's network security could interrupt the operations and adversely affect the business.

● Real or perceived errors, failures, or bugs in the technology could adversely affect the Company's operating results and growth prospects.

● The Company could be harmed by improper disclosure or loss of sensitive or confidential Company, employee, or customer data, including personal data.

● A material breach in security relating to the Company's information systems and regulation related to such breaches could adversely affect the Company.

● The Company's contracts may contain performance obligations that require innovative design capabilities, are technologically complex, require state-of-the-art manufacturing expertise or are dependent upon factors not wholly within the Company's control. Failure to meet the contractual obligations could adversely affect the Company's profitability, reputation and future prospects.

● The Company's insurance coverage, customer indemnifications or other liability protections may be unavailable or inadequate to cover all of the significant risks or the insurers may deny coverage of or be unable to pay for material losses the Company incurs, which could adversely affect the Company's profitability and overall financial position.

● The Company may not be able to adequately protect its intellectual property, which, in turn, could harm the value of the brands and adversely affect the business.

● The Company's business operations and future development could be significantly disrupted if the Company loses key members of its management team.

● The Company's ability to meet the needs of its customers depends, in part, on the Company's ability to maintain a qualified workforce.

● If the Company is able to expand the operations, the Company may be unable to successfully manage its future growth.

● The Company may become subject to various investigations, claims, disputes, enforcement actions, litigation, arbitration and other legal proceedings that could ultimately be resolved against the Company.

● The Company's reputation, the ability to do business and the Company's financial position, results of operations and/or cash flows may be impacted by the improper conduct of employees, agents, subcontractors, suppliers, business partners or joint ventures in which the Company participates.

● The Company's principal offices and customers are located in Israel and, therefore, the business, financial condition and results of operation may be adversely affected by political, economic and military instability in Israel.

● The Company's operations may be disrupted as a result of the obligation of management or key personnel to perform military service.

● It may be difficult to enforce a judgment of a Canadian court against the Company, certain of the Company's officers and directors or the Israeli experts named in the Annual Report are in Israel, to assert Canadian securities laws claims in Israel or to serve process on certain of the officers and directors and these experts.

● The Company may become subject to claims for payment of compensation for assigned service inventions by the Company's current or former employees, which could result in litigation and adversely affect the business.

● A more active, liquid trading market for the common shares may not develop, and the price of the common shares may fluctuate significantly.

● Concentration of ownership of the common shares may enable one shareholder or a small number of shareholders to significantly influence matters requiring shareholder approval.

● Sales by the Company's shareholders of a substantial number of the common shares in the public market could adversely affect the market price of the common shares.

● The exercise of outstanding warrants and options will have a dilutive effect on the percentage ownership of the common shares by existing shareholders.

● The common shares will be traded on more than one market and this may result in price variations.

Although we base the forward-looking statements contained in this Annual Report on assumptions that we believe are reasonable, we caution you that actual results and developments (including our results of operations, financial condition and liquidity, and the development of the industry in which we operate) may differ materially from those made in or suggested by the forward-looking statements contained in this Annual Report. Additional impacts may arise that we are not aware of currently. The potential of such additional impacts intensifies the business and operating risks that we face, and should be considered when reading the forward-looking statements contained in this Annual Report. In addition, even if results and developments are consistent with the forward-looking statements contained in this Annual Report, those results and developments may not be indicative of results or developments in subsequent periods. As a result, any or all of our forward-looking statements in this Annual Report may prove to be inaccurate. We have included important factors in the cautionary statements included in this Annual Report on Form 20-F, particularly in Section 3.D of this Annual Report on Form 20-F titled "Risk Factors", that we believe could cause actual results or events to differ materially from the forward-looking statements that we make. No forward-looking statement is a guarantee of future results. Moreover, we operate in a highly competitive and rapidly changing environment in which new risks often emerge. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make.

You should read this Annual Report and the documents that we reference herein and have filed as exhibits hereto completely and with the understanding that our actual future results may be materially different from what we expect. The forward-looking statements contained herein are made as of the date of this Annual Report, and we do not assume any obligation to update any forward-looking statements except as required by applicable laws.

**PART I** 

**ITEM 1. IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS**

Not applicable.

**ITEM 2. OFFER STATISTICS AND EXPECTED TIMETABLE**

Not applicable.

**ITEM 3. KEY INFORMATION**

**A.** **[Reserved]**

**B. Capitalization and Indebtedness**

Not applicable.

**C. Reasons for the Offer and Use of Proceeds**

Not applicable.

**D. Risk Factors**

**Risks Related to the Company's Financial Position and Capital Requirements**

*The Company has incurred significant losses and there can be no assurance when, or if, the Company will achieve or maintain profitability.*

 

The Company realized a net loss of approximately $19.3 million for the year ended December 31, 2022, $39.8 million for the year ended December 31, 2021 and $7.2 million for the year ended December 31, 2020. The Company has an accumulated deficit of $67 million as of December 31, 2022. Because of the numerous risks and uncertainties associated with the provision of the Company's maintenance services and sale and development of the Company's products, the Company is unable to predict the extent of any future losses or when the Company will become profitable, if at all. Expected future operating losses will have an adverse effect on the Company's cash resources, shareholders' equity and working capital. The Company's failure to become and remain profitable could depress the value of the common shares and impair the Company's ability to raise capital, expand its business, maintain its development efforts, or continue its operations. A decline in the Company's value could also cause a holder of common shares to lose all or part of such holder's investment in the Company.

*Our operations may not be profitable.*

 

The Company may not be able to generate significant revenues in the future. In addition, we expect to incur substantial operating expenses in order to fund the expansion of our business. As a result, we may experience substantial negative cash flow for at least the foreseeable future and cannot predict when, or even if, the Company might become profitable.

*The Company expects that it will need to raise additional capital to meet the Company's business requirements in the future, which is likely to be challenging, could be highly dilutive and may cause the market price of the common shares to decline.*

 

Based on the Company's projected cash flows and the cash balances as of the date of this Annual Report, the Company believes that it has sufficient cash to fund the Company's obligations for at least the next twelve months. However, in order to meet the Company's business objectives in the future, the Company expects that the Company will need to raise additional capital, which may not be available on reasonable terms or at all.

Additional capital would be used to accomplish the following:

● finance the Company's current operating expenses;

● pursue growth opportunities;

● hire and retain qualified management and key employees;

● respond to competitive pressures;

● comply with regulatory requirements;

● maintain compliance with applicable laws; and

● acquire complementary businesses and technologies.

Conditions in the capital markets are such that traditional sources of capital may not be available to the Company when needed or may be available only on unfavorable terms. The Company's ability to raise additional capital, if needed, will depend on conditions in the capital markets, economic conditions, the impact of any potential future health crisis, such as the COVID 19 pandemic, and a number of other factors, many of which are outside the Company's control, and on its financial performance. Accordingly, the Company cannot assure that the Company will be able to successfully raise additional capital at all or on terms that are acceptable to the Company. If the Company cannot raise additional capital when needed, it may have a material adverse effect on the Company's business, results of operations and financial condition.

To the extent that the Company raises additional capital through the sale of equity or convertible debt securities, the issuance of such securities could result in substantial dilution for the Company's current shareholders. The terms of any securities issued by the Company in future capital transactions may be more favorable to new investors, and may include preferences, superior voting rights and the issuance of warrants or other derivative securities, which may have a further dilutive effect on the holders of any of the Company's securities then-outstanding. The Company may issue additional common shares or securities convertible into or exchangeable or exercisable for the common shares in connection with hiring or retaining personnel, option or warrant exercises, future acquisitions or future placements of the Company's securities for capital-raising or other business purposes. The issuance of additional securities, whether equity or debt, by the Company, or the possibility of such issuance, may cause the market price of the common shares to decline and existing shareholders may not agree with the Company's financing plans or the terms of such financings. In addition, the Company may incur substantial costs in pursuing future capital financing, including investment banking fees, legal fees, accounting fees, securities law compliance fees, printing and distribution expenses and other costs. The Company may also be required to recognize non-cash expenses in connection with certain securities the Company issues, such as convertible notes and warrants, which may adversely impact the Company's financial condition. Furthermore, any additional debt or equity financing that the Company may need may not be available on terms favorable to the Company, or at all. If the Company is unable to obtain such additional financing on a timely basis, the Company may have to curtail its development activities and growth plans and/or be forced to sell assets, perhaps on unfavorable terms, or the Company may have to cease its operations, which would have a material adverse effect on the Company's business, results of operations and financial condition.

*We expect that we will need to invest significant time and raise substantial additional capital before we can expect to become profitable from sales of our products. This additional capital may not be available on acceptable terms, or at all. Failure to obtain this necessary capital when needed may force us to delay, limit or terminate our product development efforts or other operations.*

We expect that we will need to invest significant time and require substantial additional capital to commercialize our products. In addition, our operating plans may change as a result of many factors that may currently be unknown to us, and we may need to seek additional funds sooner than planned. Our future capital requirements will depend on many factors, including but not limited to production and manufacturing costs (which are dependent on the costs of mechanical and electronic components of our products), research and development activities, sales activities including compensation for salespersons, development of additional software and hardware products for our current offerings, and marketing costs related to expansion into new markets.

*We may not accurately forecast revenues, profitability and appropriately plan our expenses.*

We base our current and future expense levels on our operating forecasts and estimates of future income and operating results. Income and operating results are difficult to forecast because they generally depend on the volume of sales and timing, which are uncertain. Additionally, our business is affected by general economic and business conditions around the world. A softening in income, whether caused by changes in customer preferences in the markets we serve, or a weakening in global economies, may result in decreased net revenue levels, and we may be unable to adjust our expenses in a timely manner to compensate for any unexpected shortfall in income. This inability could cause our (loss)/income after tax in a given quarter to be (higher)/lower than expected. We also make certain assumptions when forecasting the amount of expense we expect related to our share-based payments, which includes the expected volatility of our share price, and the expected life of share options granted. These assumptions are partly based on historical results. If actual results differ from our estimates, our operating results in a given period may be lower than expected.

*Exchange rate fluctuations between multiple foreign currencies may negatively affect our earnings, operating cash flow.*

Our reporting currency is the US Dollar and our functional currency is the New Israeli Shekel ("NIS"). Our key expenses and revenues are currently primarily payable in NIS and U.S. In addition, we receive and have received funding in CAD, U.S. dollars, and NIS. As a result, we are exposed to the currency fluctuation risks relating to the recording of our expenses and revenues in U.S. dollars, and potential cash flow shortage. We may, in the future, decide to enter into currency hedging transactions. These measures, however, may not adequately protect us from material adverse effects.

**Risks Related to the Company and the Company's Business**

*The Company's business is subject to risks arising from a widespread outbreak of an illness or any other communicable disease, or any other public health crisis, such as the COVID-19 pandemic, which has impacted and could continue to impact the business.*

In late 2019, a novel strain of COVID-19, also known as coronavirus, was reported in Wuhan, China. While initially the outbreak was largely concentrated in China, it has now spread to Israel and the United States, and infections have been reported globally. Many countries around the world, including in Israel, have significant governmental measures implemented to control the spread of the virus, including temporary closure of businesses, severe restrictions on travel and the movement of people, and other material limitations on the conduct of business. The nature of the Company's work in Israel is such that the Company is considered an essential service industry, and therefore, is generally able to continue all of its operations in Israel with little disruption. Initially, the Company implemented remote working and work-place protocols for its employees in accordance with Israeli government requirements. The Company has now returned to its regular work-place structure. Nevertheless, the COVID-19 pandemic has resulted in delays in receiving service orders from customers which has resulted in a decrease in revenues in recent periods.

*Failure to effectively develop and expand the Company's sales and marketing capabilities could harm the ability to grow the business and achieve broader market acceptance of the Company's products.*

The Company's ability to achieve customer adoption of its retail automation solutions and civilian technology will depend, in part, on the ability to effectively establish, focus and train a sales and marketing force. The Company's Cust2Mate retail automation solution only recently entered the commercialization phase. The Company's ability to achieve significant revenue growth in the future will depend, in part, on the Company's ability to recruit, train and retain a sufficient number of experienced sales professionals. In addition, even if the Company is successful in hiring qualified sales personnel, new hires require significant training and experience before they achieve full productivity, particularly for sales efforts targeted at new markets. Because the Company only recently started sales efforts for the retail automation solutions, the Company cannot predict whether, or to what extent, the sales efforts will be successful.

*The Company expects the sales cycle to be long and unpredictable and require considerable time and expense before executing a customer agreement, which may make it difficult to project when, if at all, the Company will obtain new customers and when the Company will generate revenue from those customers.*

In both the retail automation and civilian technology market, the decision to adopt the Company's products may require the approval of multiple technical and business decision makers, including security, compliance, procurement, operations and information technology. In addition, the Company expects that while a customer may be willing to deploy the Company's products on a limited basis, before they will commit to deploying the products at scale, they will require extensive education about the Company's products and significant customer support time, engage in protracted pricing negotiations and seek to secure readily available development resources. As a result, it is difficult to predict when the Company will obtain new customers and begin generating revenue from these customers. As part of the sales cycle, the Company may incur significant expenses before executing a definitive agreement with a prospective customer and before the Company is able to generate any revenue from such agreement. The Company has no assurance that the substantial time and money spent on the sales efforts will generate significant revenue. If conditions in the marketplace generally or with a specific prospective customer change negatively, it is possible that no definitive agreement will be executed, and the Company will be unable to recover any of these expenses. If the Company is not successful in targeting, supporting and streamlining the sales processes and if revenue expected to be generated from a prospective customer is not realized in the time period expected or not realized at all, the Company's ability to grow its business, and its operating results and financial condition may be adversely affected. If the sales cycles lengthen, the Company's future revenue could be lower than expected, which would have an adverse impact on the operating results and could cause the Company's share price to decline.

*If the Company is not able to enhance the brand and increase market awareness of the Company and products, then the business, results of operations and financial condition may be adversely affected.*

The Company believes that enhancing the "A2Z" and "Cust2Mate" brand identity and increasing market awareness of the Company and products is critical to achieving widespread acceptance of the Company's products. The Company's ability to penetrate its target markets may be adversely affected by a lack of awareness or acceptance of the brand. To the extent that the Company is unable to foster name recognition and affinity for the brand, the growth may be significantly delayed or impaired. The successful promotion of the Company's brand will depend largely on the marketing efforts, market adoption of the products, and the ability to successfully differentiate the Company's products from competing products and services. The Company's brand promotion may not be successful or result in revenue generation. Any incident that erodes consumer affinity for the brand could significantly reduce the brand value and damage the Company's business. If consumers perceive or experience a reduction in quality, or in any way believe the Company may fail to deliver a consistently positive experience, the brand value could suffer, and the business may be adversely affected.

*If the Company does not develop enhancements to the technology and introduce new products that achieve market acceptance, the business, results of operations and financial condition could be adversely affected.*

The Company's ability to attract new customers depends in part on the ability to enhance and improve the existing technology, increase adoption and usage of the solutions and introduce new products. The success of any enhancements or new products depends on several factors, including timely completion, adequate quality testing, actual performance quality, and overall market acceptance. Enhancements and new products that the Company develops may not be introduced in a timely or cost-effective manner, may contain errors or defects, may have interoperability difficulties with other products or may not achieve the broad market acceptance necessary to generate significant revenue. Furthermore, the ability to increase the usage of the Company's solutions and technology depends, in part, on the development of new use cases and may be outside of the Company's control. If the Company is unable to successfully enhance the existing solutions and technology to meet evolving customer requirements, increase adoption and usage, develop new products, then the business, results of operations and financial condition would be adversely affected.

*The technology markets in which the Company competes are both subject to rapid technological change and, to compete, the Company must continually enhance its products and services.*

The Company must continue to enhance and improve the performance, functionality and reliability of its technology. The technology markets in which the Company competes are characterized by rapid technological change, changes in user requirements and preferences, frequent new product and services introductions embodying new technologies and the emergence of new industry standards and practices that could render its products obsolete. The Company's success will depend, in part, on the ability to both internally develop and enhance existing technology, develop new products that address the increasingly sophisticated and varied needs of the Company's customers, and respond to technological advances and emerging industry standards and practices on a cost-effective and timely basis. The development of the Company's technology involves significant technical and business risks. The Company may fail to use new technologies effectively or to adapt its proprietary technology and systems to customer requirements or emerging industry standards. If the Company is unable to adapt to changing market conditions, customer requirements or emerging industry standards, the Company may not be able to increase its revenue and expand its business.

*The Company depends on one customer for the smart-cart sales, a major source of the Company's current revenues; the loss of this customer may have a material adverse effect on the Company's operating results.*

Currently, one customer is responsible for a significant portion of the Company's smart-cart revenues. During the years ended December 31, 2022, 2021 and 2020, this customer constituted 40%, 0% and 0% of the total revenues, respectively. The percentage of the Company's sales to the Company's major customers may fluctuate from period to period, and the Company's principal customers may also vary from year to year. Significant reduction in sales to any of the major customers, or the loss of a major customer, could have a material adverse effect on the results of operations and financial condition.

*The Company's growth depends, in part, on the success of the strategic relationships with third parties.*

To grow the business, the Company anticipates that the Company will continue to depend on relationships with third parties, such as the Company's customers, suppliers and software providers. Identifying partners, and negotiating and documenting relationships with them, requires significant time and resources. If the Company is unsuccessful in establishing or maintaining its relationships with third parties, the Company's ability to compete in the marketplace or to grow the Company's revenue could be impaired, and the results of operations may suffer. Even if the Company is successful, the Company cannot assure you that these relationships will result in increased customer usage of the products or increased revenue.

*The Company's future profitability depends, in part, on subcontractor and supplier performance and financial viability as well as component availability and pricing.*

The Company relies on other companies to provide components and subsystems for its technology and to produce hardware elements and sub-assemblies, provide software and intellectual property, provide information about the parts they supply to the Company, and to do so in compliance with all applicable laws, regulations and contract terms. Disruptions or performance problems caused by the Company's subcontractors and suppliers, or a misalignment between the Company's contractual obligations and the agreement with its subcontractors and suppliers, could have various impacts on the Company, including on the ability to meet the Company's commitments to customers.

The Company's ability to perform its obligations on time could be adversely affected if one or more of the Company's subcontractors or suppliers were unable to provide the agreed-upon products, materials or information, or perform the agreed-upon services in a timely, compliant and cost-effective manner or otherwise to meet the requirements of the contract. Changes in political or economic conditions, including changes in defense budgets or credit availability or sanctions, or other changes impacting a subcontractor or supplier (including changes in ownership or operations), as well as their ability to retain talent and other resources, and requirements or changes in requirements imposed on them by other customers, could adversely affect the financial stability of the Company's subcontractors and suppliers and/or their ability to perform. The inability of the Company's suppliers to perform, or their inability to perform adequately, could also result in the need for the Company to transition to alternate suppliers, which could result in significant incremental cost and delay or the need for the Company to provide other resources to support its existing suppliers. This risk may increase as the demands grow for the Company's subcontractors and suppliers to meet extensive government-related cyber and other requirements.

If the Company's subcontractors or suppliers fail to perform or the Company is unable to procure, or experience significant delays in deliveries of, needed products, materials or services; or if they do not comply with all applicable laws, regulations, requirements and contract terms, including if what the Company received is counterfeit or otherwise improper, the Company's financial position, results of operations and/or cash flows could be materially adversely affected.

*Information technology system failures or breaches of the Company's network security could interrupt the operations and adversely affect the business.*

The Company's operations depend upon the ability to protect the Company's computer equipment and systems against damage from physical theft, fire, power loss, telecommunications failure or other catastrophic events, as well as from internal and external security breaches, viruses, worms and other disruptive problems. Any damage or failure of the computer systems or network infrastructure that causes an interruption in the operations could have a material adverse effect on the business and subject the Company to litigation or actions by regulatory authorities. Although the Company employs both internal resources and external consultants to conduct auditing and testing for weaknesses in the systems, controls, firewalls and encryption and intend to maintain and upgrade the Company's security technology and operational procedures to prevent such damage, breaches or other disruptive problems, there can be no assurance that these security measures will be successful.

*Real or perceived errors, failures, or bugs in the technology could adversely affect the Company's operating results and growth prospects.*

The Company has discovered and expects that the Company will continue to discover errors, failures and bugs in its technology and anticipate that certain of these errors, failures and bugs will only be discovered and remediated after deployment. Real or perceived errors, failures or bugs in the platform could result in negative publicity, government inquiries, loss of or delay in market acceptance of the Company's technology, loss of competitive position, or claims by customers for losses sustained by them. In such an event, the Company may be required, or may choose, for customer relations or other reasons, to expend additional resources in order to help correct the problem.

*The Company could be harmed by improper disclosure or loss of sensitive or confidential Company, employee, or customer data, including personal data.*

In connection with the operation of the business, the Company stores, processes and transmits data, including personal and payment information, about the Company's employees and customers, a portion of which is confidential and/or personally sensitive. Unauthorized disclosure or loss of sensitive or confidential data may occur through a variety of methods. These include, but are not limited to, systems failure, employee negligence, fraud or misappropriation, or unauthorized access to or through the information systems, whether by the Company's employees or third parties, including a cyberattack by computer programmers, hackers, members of organized crime and/or state-sponsored organizations, who may develop and deploy viruses, worms or other malicious software programs. Such disclosure, loss or breach could harm the Company's reputation and subject the Company to government sanctions and liability under the contracts and laws that protect sensitive or personal data and confidential information, resulting in increased costs or loss of revenues. It is possible that security controls over sensitive or confidential data and other practices the Company and its third-party vendors follow may not prevent the improper access to, disclosure of, or loss of such information. The potential risk of security breaches and cyberattacks may increase as the Company introduces new products and offerings. Further, data privacy is subject to frequently changing rules and regulations, which sometimes conflict among the various jurisdictions in which the Company provides services. Any failure or perceived failure to successfully manage the collection, use, disclosure, or security of personal information or other privacy related matters, or any failure to comply with changing regulatory requirements in this area, could result in legal liability or impairment to the Company's reputation in the marketplace.

*A material breach in security relating to the Company's information systems and regulation related to such breaches could adversely affect the Company.*

Information security risks have generally increased in recent years, in part because of the proliferation of new technologies and the use of the Internet, and the increased sophistication and activity of organized crime, hackers, terrorists, activists, cybercriminals and other external parties, some of which may be linked to terrorist organizations or hostile foreign governments. Cybersecurity attacks are becoming more sophisticated and include malicious software, ransomware, attempts to gain unauthorized access to data and other electronic security breaches that could lead to disruptions in critical systems, unauthorized release of confidential or otherwise protected information and corruption of data, substantially damaging the Company's reputation. Any person who circumvents the security measures could steal proprietary or confidential customer information or cause interruptions in the Company's operations. The Company incurs significant costs to protect against security breaches and may incur significant additional costs to alleviate problems caused by any breaches. The Company's failure to prevent security breaches, or well-publicized security breaches affecting the Internet in general, could significantly harm the Company's reputation and business and financial results.

*The Company's contracts may contain performance obligations that require innovative design capabilities, are technologically complex, require state-of-the-art manufacturing expertise or are dependent upon factors not wholly within the Company's control. Failure to meet the contractual obligations could adversely affect the Company's profitability, reputation and future prospects.*

The Company designs and develops advanced and innovative products and services, which are applied by the customers in a variety of environments, including some under highly demanding operating conditions. Problems and delays in development or delivery, or system failures, as a result of issues with respect to design, technology, intellectual property rights, labor, inability to achieve learning curve assumptions, inability to manage effectively a broad array of programs, manufacturing materials or components, or subcontractor performance could prevent the Company from meeting requirements and create significant risk and liabilities. Similarly, failures to perform on schedule or otherwise to fulfill the contractual obligations could negatively impact the Company's financial position, reputation and ability to win future business. If the Company is unable to meet its obligations, including due to issues regarding the design, development or manufacture of the products or services, it could have a material adverse effect on the Company's reputation, the ability to compete for other contracts and the financial position, results of operations and/or cash flows.

*The Company's insurance coverage, customer indemnifications or other liability protections may be unavailable or inadequate to cover all of the significant risks or the insurers may deny coverage of or be unable to pay for material losses the Company incurs, which could adversely affect the Company's profitability and overall financial position.*

The Company endeavors to obtain insurance agreements from financially solid, responsible, highly rated counterparties in established markets to cover significant risks and liabilities. Not every risk or liability can be insured, and for risks that are insurable, the policy limits and terms of coverage reasonably obtainable in the market may not be sufficient to cover all actual losses or liabilities incurred. Even if insurance coverage is available, the Company may not be able to obtain it at a price or on terms acceptable to the Company. Disputes with insurance carriers, including over policy terms, reservation of rights, the applicability of coverage (including exclusions), compliance with provisions (including notice) and/or the insolvency of one or more of the insurers may significantly affect the availability or timing of recovery, and may impact the Company's ability to obtain insurance coverage at reasonable rates in the future.

In some circumstances the Company may be entitled to certain legal protections or indemnifications from its customers through contractual provisions, laws, regulations or otherwise. However, these protections are not always available, can be difficult to obtain, are typically subject to certain terms or limitations, including the availability of funds, and may not be sufficient to cover all losses or liabilities incurred. If insurance coverage, customer indemnifications and/or other legal protections are not available or are not sufficient to cover the risks or losses, it could have a material adverse effect on the Company's financial position, results of operations and/or cash flows.

*The Company may face intense competition and expects competition to increase in the future, which could prohibit the Company from developing a customer base and generating revenue.*

The Company faces significant competition in every aspect of the business. Many companies that the Company competes with may already have an established market in the industries in which the Company competes and most of these companies have significantly greater financial and other resources than the Company and have been developing their products and services longer than the Company has been developing theirs. In addition, some of the Company's larger competitors have substantially broader product offerings and leverage their relationships based on other products or incorporate functionality into existing products to gain business in a manner that discourages potential customers from purchasing the Company's products. Potential customers may also prefer to purchase from their existing solution providers rather than a new solution provider regardless of product performance or features. These larger competitors often have broader product lines and market focus and will therefore not be as susceptible to downturns in a particular market. Conditions in the Company's market could change rapidly and significantly as a result of technological advancements, partnering by the Company's competitors or continuing market consolidation. New start-up companies that innovate and large competitors that are making significant investments in research and development may invent similar or superior products and technologies that compete with the Company's products. In addition, some of the Company's competitors may enter into new alliances with each other or may establish or strengthen cooperative relationships. Any such consolidation, acquisition, alliance or cooperative relationship could lead to pricing pressure and the loss of any future market share and could result in a competitor with greater financial, technical, marketing, service and other resources, all of which could harm the Company's ability to compete. Furthermore, organizations may be more willing to incrementally add solutions to their existing infrastructure from competitors than to replace their existing infrastructure with the Company's products. Any failure to meet and address these factors could harm the Company's business, results of operations and financial condition.

*The Company's business operations and future development could be significantly disrupted if the Company loses key members of its management team.*

The success of the business continues to depend to a significant degree upon the continued contributions of the Company's senior officers and key employees, both individually and as a group. The Company's future performance will be substantially dependent in particular on the ability to retain and motivate Bentsur Joseph, the Chief Executive Officer, senior officers or other key employees could have a material adverse effect on the business and plans for future development. The Company has no reason to believe that the Company will lose the services of any of these individuals in the foreseeable future; however, the Company currently has no effective replacement for any of these individuals due to their experience, reputation in the industry and special role in the Company's operations. The Company also does not maintain any key man life insurance policies for any of its employees.

*The Company's ability to meet the needs of its customers depends, in part, on the Company's ability to maintain a qualified workforce.*

The Company's operating results and growth opportunities are heavily dependent upon the ability to attract and retain sufficient personnel with security clearances and requisite skills in multiple areas, including science, technology, engineering and math. Additionally, as the Company grows its international business, it is increasingly important that the Company is able to attract and retain personnel with relevant local qualifications and experience. In addition, in a tightened labor market, the Company is facing increased competition for talent, both with traditional defense companies and commercial companies. If qualified personnel are scarce or difficult to attract or retain or if the Company experiences a high level of attrition, generally or in particular areas, or if such personnel are unable to obtain security clearances on a timely basis, the Company could experience higher labor, recruiting or training costs in order to attract and retain necessary employees.

*If the Company is able to expand the operations, the Company may be unable to successfully manage its future growth.*

The Company's growth may strain the Company's infrastructure and resources. Any such growth could place increased strain on the Company's management, operational, financial and other resources, and the Company will need to train, motivate, and manage employees, as well as attract management, sales, finance and accounting, international, technical, and other professionals. Any failure to expand these areas and implement appropriate procedures and controls in an efficient manner and at a pace consistent with the Company's business objectives could have a material adverse effect on the business, results of operations and financial condition.

*We are subject to certain Israeli, U.S. and foreign anti-corruption anti-money laundering and other trade laws and regulations. We can face serious consequences for violations.*

Among other matters, Israeli, U.S. and foreign anticorruption, anti-money laundering and other trade laws and regulations, which are collectively referred to as Trade Laws, prohibit companies and their employees, agents, legal counsel, accountants, consultants, contractors and other partners from authorizing, promising, offering, providing, soliciting or receiving, directly or indirectly, corrupt or improper payments or anything else of value to or from recipients in the public or private sector. Violations of Trade Laws can result in substantial criminal fines and civil penalties, imprisonment, the loss of trade privileges, debarment, tax reassessments, breach of contract and fraud litigation, reputational harm, and other consequences. We have direct or indirect interactions with officials and employees of government agencies or government-affiliated entities. We can be held liable for the corrupt or other illegal activities of our personnel, agents or partners, even if we do not explicitly authorize or have prior knowledge of such activities.

*The Company may become subject to various investigations, claims, disputes, enforcement actions, litigation, arbitration and other legal proceedings that could ultimately be resolved against the Company.*

The size, nature and complexity of the business make the Company susceptible to investigations, claims, disputes, enforcement actions, prosecutions, litigation and other legal proceedings, particularly those involving governments (including federal, state and outside the U.S.). The Company may become subject to investigations, claims, disputes, enforcement actions and administrative, civil or criminal litigation, arbitration or other legal proceedings globally and across a broad array of matters, including, but not limited to, government contracts, commercial transactions, false claims, false statements, antitrust, mischarging, contract performance, fraud, procurement integrity, products liability, privacy, warranty liability, the use of hazardous materials, personal injury claims, environmental, shareholder derivative actions, prior acquisitions and divestitures, intellectual property, tax, employees, export/import, anti-corruption, labor, health and safety, accidents, launch failures and employee benefits and plans, including plan administration, and improper payments. These matters could divert financial and management resources; result in administrative, civil or criminal fines, penalties or other sanctions (which terms include judgments or convictions and consent or other voluntary decrees or agreements), compensatory, treble or other damages, non-monetary relief or actions, or other liabilities; and otherwise harm the business and the Company's ability to obtain and retain awards. Government regulations provide that certain allegations against a contractor may lead to suspension or debarment from government contracts or suspension of export privileges for the company or one or more of its components. Suspension or debarment or criminal resolutions in particular could have a material adverse effect on the company because of its reliance on government contracts and export authorizations. An investigation, claim, dispute, enforcement action or litigation, even if not substantiated or fully indemnified or insured, could also negatively impact the Company's reputation among its customers and the public, and make it substantially more difficult for the Company to compete effectively for business, obtain and retain awards or obtain adequate insurance in the future. Investigations, claims, disputes, enforcement actions, litigation or other legal proceedings could have a material adverse effect on the Company's financial position, results of operations and/or cash flows.

*The Company's reputation, the ability to do business and the Company's financial position, results of operations and/or cash flows may be impacted by the improper conduct of employees, agents, subcontractors, suppliers, business partners or joint ventures in which the Company participates.*

The Company has implemented policies, procedures, and other compliance controls, and have negotiated terms designed to prevent misconduct by employees, agents or others working on the Company's behalf or with the Company that would violate the applicable laws of the jurisdictions in which the Company operates, including laws governing the protection of classified information, procurement integrity, information security and data privacy, or the terms of the Company's contracts. However, the Company cannot ensure that the Company will prevent all such misconduct committed by its employees, agents, subcontractors, suppliers, business partners or others working on the Company's behalf or with the Company. This risk of improper conduct may increase as the Company continues to expand globally and do business with new partners. Improper actions by those with whom or through whom the Company does business (including the Company's employees, agents, subcontractors, suppliers, business partners and joint ventures) could subject the Company to administrative, civil or criminal investigations and enforcement actions; monetary and non-monetary penalties; liabilities; and the loss of privileges and other sanctions, including suspension and debarment, which could negatively impact the Company's reputation and ability to conduct business and could have a material adverse effect on the Company's financial position, results of operations and/or cash flows.

*The Company may not generate the expected benefits of the acquisition of Cust2Mate and Isramat, and the acquisition of same could disrupt the Company's ongoing business, distract management and increase the Company's expenses.*

The Company acquired a controlling interest in Cust2Mate and all of the issued and outstanding shares of Isramat with the expectation that the acquisition of such entities will result in various benefits. Achieving the anticipated benefits of the acquisition of Cust2Mate and Isramat is subject to a number of uncertainties, including whether the Company's business and the businesses of Cust2Mate and Isramat can be integrated in an efficient and effective manner. The Company may not be able to accurately forecast the performance or ultimate impact of the acquisition of Cust2Mate and Isramat. It is possible that the integration process could take longer than anticipated and could result in the loss of valuable employees, additional and unforeseen expenses, the disruption of the Company's ongoing business, processes and systems, or inconsistencies in standards, controls, procedures, practices, policies and compensation arrangements, any of which could adversely affect the Company's ability to achieve the anticipated benefits of the acquisition of Cust2Mate and Isramat. There may be increased risk due to integrating financial reporting and internal control systems. The integration process is subject to a number of uncertainties, and no assurance can be given that the anticipated benefits, expense savings and synergies will be realized or, if realized, the timing of their realization. Failure to achieve these anticipated benefits could result in increased costs or decreases in the amount of expected revenues and could adversely affect the Company's future business, financial condition, operating results and prospects.

The success of the acquisition of Cust2Mate and Isramat, depends upon effective integration and management of the acquired business into the Company's operations, which is subject to risks and uncertainties, including realizing the anticipated synergies and cost savings, the ability to retain and attract personnel, the diversion of management's attention for other business concerns, and undisclosed or potential legal liabilities of the Cust2Mate and Isramat business or assets. The Company will be required to devote significant management attention and resources to integrate the business and operations of Cust2Mate and Isramat.

The Company may also in the future engage in further acquisitions to expand its product and service offerings. These acquisitions involve risks and uncertainties such as:

● the Company's pre-acquisition due diligence may fail to identify material risks;

● significant acquisitions may negatively impact the Company's financial results, including cash flow and financial liquidity;

● significant goodwill assets recorded on the Company's consolidated balance sheet from prior acquisitions are subject to impairment testing, and unfavorable changes in circumstances could result in impairment to those assets;

● acquisitions may result in significant additional unanticipated costs associated with price adjustments or write-downs;

● the Company may not integrate newly acquired businesses and operations in an efficient and cost-effective manner;

● relocation or combination of facilities of acquired businesses may be more costly or time consuming than planned;

● the Company may fail to achieve the strategic objectives, synergies, cost savings and other benefits expected from acquisitions;

● the technologies acquired may not prove to be those needed to be successful in the Company's markets or may not have adequate intellectual property rights protection;

● the Company may assume significant liabilities and exposures that exceed the enforceability or other limitations of applicable indemnification provisions, if any, or the financial resources of any indemnifying parties, including indemnity for tax or regulatory compliance issues, such as anti-corruption and environmental compliance, that may result in the Company incurring successor liability;

● the Company may fail to retain key employees of the acquired businesses;

● the attention of senior management may be diverted from its existing operations;

**●** the Company may be exposed to potential shareholder claims if the Company acquires a significant interest in a publicly traded company; and

● the Company could be subject to more restrictive regulations by the local authorities after the acquisition, including regulations relating to foreign ownership of local companies.

The Company cannot assure that these risks or other unforeseen factors will not offset the intended benefits of the acquisitions, and such risks could have a material adverse effect on the Company's financial condition and results of operation.

*If the Company expands its operations into other parts of the world, the Company will face certain additional risks and challenges.*

The Company may expand its operations into other jurisdictions around the world as part of the Company's business expansion plans, which will subject the Company to a variety of risks, including fluctuations in foreign currencies, changes in the economic strength or greater volatility in the economies of foreign countries in which the Company does business, difficulties in enforcing contractual rights and intellectual property rights, theft or vandalism, economic instability, taxes or government royalties by foreign governments, adverse changes in the regulatory environments, including in tax laws and regulations, of the foreign countries in which the Company does business, compliance with anti-corruption and anti-bribery laws, restrictions on the withdrawal of foreign investments, the ability to identify and retain qualified local managers and the challenge of managing a culturally and geographically diverse operation. The Company cannot guarantee compliance with all applicable laws and regulations, and violations could result in substantial fines, sanctions, civil or criminal penalties, competitive or reputational harm, litigation or regulatory action and other consequences that might adversely affect the Company's results of operations.

*There are tax risks we may be subject to in carrying on business in Israel and Canada.* 

We are incorporated in British Columbia, with subsidiaries in Israel. Since we are operating in a new and developing industry there is a risk that foreign governments may look to increase their tax revenues or levy additional taxes to level the playing field for perceived disadvantages to traditional brick and mortar businesses. There is no guarantee that governments will not impose such additional adverse taxes in the future.

*Our products may be subject to the recall or return.* 

Manufacturers and distributors of products are sometimes subject to the recall or return of their products for a variety of reasons, including product defects, safety concerns, packaging issues and inadequate or inaccurate labeling disclosure. If any of our products were to be recalled due to an alleged product defect, safety concern or for any other reason, we could be required to incur unexpected expenses of the recall and any legal proceedings that might arise in connection with the recall. We may lose a significant amount of sales and may not be able to replace those sales at an acceptable margin or at all. In addition, a product recall may require significant management time and attention. Additionally, product recalls may lead to increased scrutiny of our products by our customers and regulators, requiring further management time and attention and potential legal fees, costs and other expenses.

*If we release defective products or services, our operating results could suffer.* 

Products designed and released by us involve testing and verification, assembly processes, and quality and functionality inspection and are difficult to develop and manufacture. While we have quality controls in place to detect and prevent defects in our products and services before they are released, these quality controls are subject to human error, overriding, and reasonable resource constraints. Therefore, these quality controls and preventative measures may not be effective in detecting and preventing defects in our products before they have been released into the marketplace. In such an event, we could be required, or decide voluntarily, to suspend the availability of the product or services, which could significantly harm our business and operating results.

*Our products and services are complex and could have unknown defects or errors, which may give rise to legal claims against us, diminish our brand or divert our resources from other purposes.*

Our products are comprised of and rely on complex and sensitive electronic hardware, algorithms, software, user-friendly interfaces and tightly integrated, electromechanical designs. Despite testing, our products could contain defects and errors and may in the future contain defects, errors or performance problems when first introduced, when new versions or enhancements are released, or even after these products have been used by our customers for a period of time. These problems could result in expensive and time-consuming design modifications or warranty charges, delays in the introduction of new products or enhancements, significant increases in our service and maintenance costs, exposure to liability for damages, damaged customer relationships and harm to our reputation, any of which could materially harm our results of operations and ability to achieve market acceptance. In addition, increased development and warranty costs could be substantial and could significantly reduce tour operating margins.

The existence of any defects, errors, or failures in our products or the misuse of our products could also lead to product liability claims or lawsuits against it. A defect, error or failure in one of our products could result in failure or damage to the products it is embedded in, or property damage, injury, death and/or significant damage our reputation and support for our services in general. We anticipate this risk will grow as more and more products using our products are deployed.

We cannot provide any assurance that we have or will have insurance adequate to protect us from material judgments and expenses related to potential future claims or that such insurance will be available in the future at economical prices or at all. Even if we are fully insured as it relates to a particular claim, the claim could nevertheless diminish our brand and divert management's attention and resources, which could have a negative impact on our business, financial condition and results of operations.

*Our senior management team has limited experience managing a public company listed on a U.S. or Canadian exchange, and regulatory compliance may divert its attention from the day to day management of our business.*

The individuals who now constitute our senior management team have relatively limited experience managing a publicly traded company listed on a U.S. or Canadian exchange and limited experience complying with the increasingly complex laws pertaining to public companies compared to senior management of other publicly traded companies listed on a U.S. or Canadian exchange. Our senior management team may not successfully or efficiently manage our transition as a recently listed public company subject to significant regulatory oversight and reporting obligations under both Canadian and U.S. securities laws. In particular, these new obligations will require substantial attention from our senior management and could divert their attention away from the day to day management of our business.

*Failure to adhere to our financial reporting obligations and other public company requirements could adversely affect the market price of our common shares.* 

The reporting and other obligations related to being a public company will place significant demands on our management, administrative, operational and accounting resources. If we are unable to meet such demands in a timely and effective manner, our ability to comply with our financial reporting obligations and other rules applicable to reporting issuers could be impaired. Moreover, any failure to maintain effective internal controls could cause us to fail to satisfy our reporting obligations or result in material misstatements in our financial statements. If we cannot provide reliable financial reports or prevent fraud, our reputation and operating results could be materially adversely affected which could also cause investors to lose confidence in our reported financial information, which could result in a reduction in the trading price of our common shares.

In addition, we do not expect that our disclosure controls and procedures and internal controls over financial reporting will prevent all errors or fraud. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues within an organization are detected. The inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple errors or mistakes. Controls can also be circumvented by individual acts of certain persons, by collusion of two or more people or by management override of the controls. Due to the inherent limitations in a control system, misstatements due to errors or fraud may occur and may not be detected in a timely manner or at all.

*Failure to remediate material weakness in internal accounting controls could result in material misstatements in our financial statements.*

Our management has identified a material weakness in our internal control over financial reporting related to lack of sufficient accounting resources with relevant technical accounting skills to address issues related to the financial statement close process, and because of the size of the Company and its staff complement, we were not able to sufficiently design internal controls to provide the appropriate level of oversight regarding the financial recordkeeping and review of the Company's financial reporting. Our management has concluded that, due to such material weakness, our internal controls over financial reporting were not effective as of December 31, 2022.

To remediate the material weakness in our internal controls over financial reporting described above, we have initiated remedial measures and are taking additional measures to remediate this material weakness. First, we are continuing to roll out an enhanced financial and accounting system. Second, we have hired additional personnel. Third, we are strengthening our controls financial reporting, with the assistance of outside consultants, experts in the controls and procedures over financing reporting. Consistent with our stage of development, we continue to rely on risk-mitigating procedures during our financial closing process in order to provide comfort that the financial statements are presented fairly in accordance with IFRS.

Such changes may not, however, be effective in establishing the adequacy of our internal control over financial reporting. If the material weakness is not adequately remedied, or if we identify further material weaknesses in our internal controls, our failure to establish and maintain effective disclosure controls and procedures and internal control over financial reporting could result in material misstatements in our financial statements and a failure to meet our reporting and financial obligations, each of which could have a material adverse effect on our financial condition and the trading price of our securities. In addition, investors' perceptions that our internal control over financial reporting is inadequate or that we are unable to produce accurate financial statements may materially adversely affect the price of our securities.

*We may experience adverse effects on our reported results of operations as a result of adopting new accounting standards or interpretations.* 

Our implementation of and compliance with changes in accounting rules, including new accounting rules and interpretations, could adversely affect our reported financial position or operating results or cause unanticipated fluctuations in our reported operating results in future periods.

*We are an emerging growth company as defined in the JOBS Act and the reduced disclosure requirements applicable to emerging growth companies may make our common shares less attractive to investors and, as a result, adversely affect the price of our common shares and result in a less active trading market for our common shares.*

We are an emerging growth company as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies. For example, we have elected to rely on an exemption from the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act relating to internal control over financial reporting, and we will not provide such an attestation from our auditors for so long as we qualify as an emerging growth company.

We may avail ourselves of these disclosure exemptions until we are no longer an emerging growth company. We cannot predict whether investors will find our common shares less attractive because of our reliance on some or all of these exemptions. If investors find our common shares less attractive, it may cause the trading price of the common shares to decline and there may be a less active trading market for our common shares.

We will cease to be an emerging growth company upon the earliest of:

● the last day of the fiscal year in which we have more than $1.235 billion in annual revenue;

● the last day of the fiscal year in which we qualify as a "large accelerated filer";

● the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt securities; and

● the last day of the fiscal year in which the fifth anniversary of the completion of our first sale of common equity securities pursuant to an effective registration statement under the Securities Act.

*We will be affected by operational risks and may not be adequately insured for certain risks.* 

We will be affected by a number of operational risks and we may not be adequately insured for certain risks, including: product liability litigation, as we do not have product liability insurance; labor disputes; further workforce reductions; catastrophic accidents; fires; blockades or other acts of social activism; changes in the regulatory environment; impact of non-compliance with laws and regulations; cyber-attacks and ransom requests; natural phenomena, such as inclement weather conditions, floods, earthquakes and ground movements. There is no assurance that the foregoing risks and hazards will not result in damage to, or destruction of, our technologies, personal injury or death, environmental damage, adverse impacts on our operation, costs, monetary losses, potential legal liability and adverse governmental action, any of which could have an adverse impact on our future cash flows, earnings and financial condition. Also, we may be subject to or affected by liability or sustain loss for certain risks and hazards against which we cannot insure or which we may elect not to insure because of the cost. This lack of insurance coverage could have an adverse impact on our future cash flows, earnings, results of operations and financial condition.

*The markets in which we compete are characterized by rapid technological change, which requires us to develop new products and product enhancements, and could render our existing products and technologies obsolete.* 

Continuing technological changes in the market for our products could make our products less competitive or obsolete, either generally or for particular applications. Our future success will depend upon our ability to develop and introduce a variety of new technologies, innovations, capabilities and enhancements to our existing product and service offerings, as well as introduce a variety of new product offerings, to address the changing needs of the markets in which we offer products. Delays in introducing new products, technologies and enhancements, the failure to choose correctly among technical alternatives or the failure to offer innovative products or enhancements at competitive prices may cause existing and potential customers to purchase our competitors' products.

If we are unable to devote adequate resources to develop new products or cannot otherwise successfully develop new products or enhancements that meet customer requirements on a timely basis, our products could lose market share, our revenue and profits could decline, and we could experience operating losses.

*If critical components or raw materials used to manufacture our products become scarce or unavailable, then we may incur delays in manufacturing and delivery of our products, which could damage our business.* 

We obtain materials, mechanical parts, hardware and electronics components, various subsystems and manufacturing and assembly services from a limited group of suppliers and sub-contractors. We do not have long-term agreements with any of these suppliers or sub-contractors that obligate them to continue to sell materials, components, subsystems, or provide manufacturing services to us. Our reliance on these suppliers or sub-contractors involves significant risks and uncertainties, including whether our suppliers or sub-contractors will provide an adequate supply of required components, subsystems, or services of sufficient quality, will increase prices for the components, subsystems or services and will perform their obligations on a timely basis. As of the date of this report, the Company has not experienced any delays or shortages in the supply of critical components or raw materials used for manufacturing its products.

In addition, certain raw materials and components used in the manufacture of our products are periodically subject to supply shortages, and our business is subject to the risk of price increases and periodic delays in delivery. Specifically, the electronics components shortage crisis, a unique result of the COVID-19 pandemic, negatively affected our market segment by increased delivery lead time and increased purchase prices of components used under certain of our products, which resulted in delay in delivery time of our products to our customers, and had negative effect on our revenues and profitability. Please see Risk Factors – *The Company's business is subject to risks arising from a widespread outbreak of an illness or any other communicable disease, or any other public health crisis, such as the COVID-19 pandemic, which has impacted and could continue to impact the business*. Similarly, the market for electronic components is subject to cyclical reductions in supply, outside of COVID-19. If we are unable to obtain components from third-party suppliers in the quantities and of the quality that we require, on a timely basis and at acceptable prices, then we may not be able to deliver our products on a timely or cost-effective basis to our customers, which could cause customers to terminate their contracts with us, increase our costs and seriously harm our business, results of operations and financial condition. Moreover, if any of our suppliers or sub-contractors become financially unstable, then we may have to find new suppliers or sub-contractors. It may take several months to locate alternative suppliers or sub-contractors, if required, or to redesign our products to accommodate components from different suppliers. We may experience significant delays in manufacturing and shipping our products to customers and incur additional development, manufacturing and other costs to establish alternative sources of supply if we lose any of these sources or are required to redesign our products. We cannot predict if we will be able to obtain replacement components within the time frames that we require at an affordable cost, if at all.

*If we fail to successfully promote our product and brand, it could have a material adverse effect on our business, prospects, financial condition and results of operations.* 

We believe that brand recognition is an important factor to our success. If we fail to promote our brands successfully, or if the expenses of doing so are disproportionate to any increased net sales we achieve, it would have a material adverse effect on our business, prospects, financial condition and results of operations. This will depend largely on our ability to maintain trust, be a technology leader, and continue to provide high-quality and secure technologies, products and services. Any negative publicity about us or our industry, the quality and reliability of our technologies, products and services, our risk management processes, changes to our technologies, products and services, our ability to effectively manage and resolve customer complaints, our privacy and security practices, litigation, regulatory activity, and the experience of sellers and buyers with our products or services, could adversely affect our reputation and the confidence in and use of our technologies, products and services. Harm to our brand can arise from many sources, including; failure by us or our partners to satisfy expectations of service and quality; inadequate protection of sensitive information; compliance failures and claims; litigation and other claims; employee misconduct; and misconduct by our partners, service providers, or other counterparties. If we do not successfully maintain a strong and trusted brand, our business could be materially and adversely affected.

**Risks Related to our Intellectual Property** 

*If we fail to protect, or incur significant costs in defending, our intellectual property and other know-how or proprietary rights, our business, financial condition, and results of operations could be materially harmed.* 

Our success depends, in large part, on our ability to protect our intellectual property, know-how and other proprietary rights. We rely primarily on patents, trademarks, copyrights, trade secrets other contractual provisions, to protect our intellectual property and other proprietary rights. However, most of our technology and know-how is not patented, and we may be unable or may not seek to obtain patent protection for this technology. Moreover, existing U.S. legal standards relating to the validity, enforceability and scope of protection of intellectual property rights offer only limited protection, may not provide us with any competitive advantages, and may be challenged by third parties. The laws of countries other than the U.S. may be even less protective of intellectual property rights. Accordingly, despite our efforts, we may be unable to prevent third parties from infringing upon or misappropriating our intellectual property or otherwise gaining access to our technology. Unauthorized third parties may try to copy or reverse engineer our products or portions of our products or otherwise obtain and use our intellectual property. Moreover, many of our employees have access to our trade secrets and other intellectual property. If one or more of these employees leave to work for one of our competitors, then they may disseminate this proprietary information, which may as a result damage our competitive position. If we fail to protect our intellectual property and other proprietary rights, then our business, results of operations or financial condition could be materially harmed. From time to time, we may have to initiate lawsuits to protect our intellectual property and other proprietary rights. Pursuing these claims is time consuming and expensive and could adversely impact our results of operations.

In addition, affirmatively defending our intellectual property rights and investigating whether we are pursuing a product or service development that may violate the rights of others may entail significant expense. Any of our intellectual property rights may be challenged by others or invalidated through administrative processes or litigation. If we resort to legal proceedings to enforce our intellectual property rights or to determine the validity and scope of the intellectual property or other proprietary rights of others, then the proceedings could result in significant expense to us and divert the attention and efforts of our management and technical employees, even if we prevail.

*The Company may not be able to adequately protect its intellectual property, which, in turn, could harm the value of the brands and adversely affect the business.* 

Patent applications in prosecuting have no guarantee that they will be granted, or if granted that the scope of protection will be adequate. A Freedom to Operate search has not been performed and there is no guarantee that the company is not infringing other patents. The Company's ability to implement the business plan successfully depends in part on the ability to build brand recognition using the Company's trademarks, service marks and other proprietary intellectual property, including the Company's names and logos. The Company currently has no registered trademarks. While the Company plans to register a number of its trademarks; no assurance can be given that the Company's trademark applications will be approved. No assurance can be given that the Company's patent applications which are in process will be approved. If the Company's patent applications are not approved, the ability to expand or develop the business may be negatively affected.

Third parties may also oppose the Company's trademark or patent applications, or otherwise challenge the use of the trademarks or patents. In the event that the trademarks or patents are successfully challenged, the Company could be forced to rebrand its goods and services or redesign its technology, which could result in loss of brand recognition, and could require the Company to devote resources to advertising and marketing new brands and products.

If the Company's efforts to register, maintain and protect its intellectual property are inadequate, or if any third party misappropriates, dilutes or infringes on the intellectual property, the value of the Company's brands may be harmed, which could have a material adverse effect on the business and might prevent the Company's brands from achieving or maintaining market acceptance. The Company may also face the risk of claims that the Company has infringed third parties' intellectual property rights. If third parties claim that the Company infringes upon their intellectual property rights, the Company's operating profits could be adversely affected. Any claims of intellectual property infringement, even those without merit, could be expensive and time consuming to defend, require the Company to rebrand its services, if feasible, divert management's attention and resources or require the Company to enter into royalty or licensing agreements in order to obtain the right to use a third party's intellectual property.

Any royalty or licensing agreements, if required, may not be available to the Company on acceptable terms or at all. A successful claim of infringement against the Company could result in the Company being required to pay significant damages, enter into costly license or royalty agreements, or stop the sale of certain products or services, any of which could have a negative impact on the operating profits and harm the Company's future prospects.

The Company also relies significantly upon proprietary technology, information, processes and know-how. The Company typically seeks to protect this information, including by entering into confidentiality agreements with its employees and other parties such as consultants, teammates and subcontractors. These agreements and other measures may not provide adequate protection for the Company's trade secrets and other proprietary information. In the event of an infringement of such intellectual property rights, a breach of a confidentiality agreement, a misuse or theft of the Company's intellectual property or divulgence of proprietary information, the Company may not have adequate legal remedies. In addition, the Company's trade secrets, or other proprietary information may otherwise become known or be independently developed by competitors.

If the Company is unable to adequately exploit its intellectual property rights, to protect its intellectual property rights, or to obtain rights to intellectual property of others, it could have a material adverse effect on the Company's reputation, ability to compete for and perform on contracts, financial position, results of operations and/or cash flows.

*Obtaining and maintaining our patent protection depends on compliance with various procedural, document submission, fee payment, and other requirements imposed by governmental patent agencies, and our patent protection could be reduced or eliminated for non-compliance with these requirements.* 

The United States Patent and Trademark Office (the "USPTO") and various foreign national or international patent agencies require compliance with a number of procedural, documentary, fee payment, and other similar provisions during the patent application process. Periodic maintenance fees on any issued patent are due to be paid to the USPTO and various foreign national or international patent agencies in several stages over the lifetime of the patent. While an inadvertent lapse can in many cases be cured by payment of a late fee or by other means in accordance with the applicable rules, there are situations in which non-compliance can result in abandonment or lapse of the patent or patent application, resulting in partial or complete loss of patent rights in the relevant jurisdiction. Non-compliance events that could result in abandonment or lapse of patent rights include, but are not limited to, failure to timely file national and regional stage patent applications based on our international patent application, failure to respond to official actions within prescribed time limits, non-payment of fees, and failure to properly legalize and submit formal documents. If we fail to maintain the patents and patent applications covering our products, our competitors might be able to enter the market, which would have a material adverse effect on our business.

While a patent may be granted by a national patent office, there is no guarantee that the granted patent is valid. Options exist to challenge the validity of a patent which, depending upon the jurisdiction, may include re-examination, opposition proceedings before the patent office, and/or invalidation proceedings before the relevant court. Patent validity may also be the subject of a counterclaim to an allegation of patent infringement.

Pending patent applications may be challenged by third parties in protest or similar proceedings. Third parties can typically submit prior art material to patentability for review by the patent examiner. Regarding Patent Cooperation Treaty applications, a positive opinion regarding patentability issued by the International

Searching Authority does not guarantee allowance of a national application derived from the Patent Cooperation Treaty application. The coverage claimed in a patent application can be significantly reduced before the patent is issued, and the patent's scope can be modified after issuance. It is also possible that the scope of claims granted may vary from jurisdiction to jurisdiction.

The grant of a patent does not have any bearing on whether the invention described in the patent application would infringe the rights of earlier filed patents. It is possible to both obtain patent protection for an invention and yet still infringe the rights of an earlier granted patent.

*We may be sued by third parties for alleged infringement of their proprietary rights, which could be costly, time-consuming and limit our ability to use certain technologies in the future.*

We may become subject to claims that our technologies infringe upon the intellectual property or other proprietary rights of third parties. Any claims, with or without merit, could be time-consuming and expensive, and could divert our management's attention away from the execution of our business plan. Moreover, any settlement or adverse judgment resulting from these claims could require us to pay substantial amounts or obtain a license to continue to use the disputed technology, or otherwise restrict or prohibit our use of the technology. We cannot assure that we would be able to obtain a license from the third party asserting the claim on commercially reasonable terms, if at all, that we would be able to develop alternative technology on a timely basis, if at all, or that we would be able to obtain a license to use a suitable alternative technology to permit us to continue offering, and our customers to continue using, our affected product. An adverse determination also could prevent us from offering our products to others. Infringement claims asserted against us may have a material adverse effect on our business, results of operations or financial condition.

*We may not be able to protect our intellectual property rights throughout the world.* 

Filing, prosecuting, and defending patents on all of our products throughout the world would be prohibitively expensive. Therefore, we have filed applications and/or obtained patents only in the United States. Competitors may use our technologies in jurisdictions where we have not obtained patent protection to develop their own products and their products may compete with our products.

**Risks Related to the Company's Operations in Israel**

*The Company's principal offices and customers are located in Israel and, therefore, the business, financial condition and results of operation may be adversely affected by political, economic and military instability in Israel.*

The Company's operational offices and customers are located in Israel. In addition, all of the Company's employees and officers, and one of the directors, are residents of Israel. Accordingly, political, economic and military conditions in Israel may directly affect the business. Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and its neighboring countries. Any hostilities involving Israel or the interruption or curtailment of trade between Israel and its trading partners could adversely affect the Company's operations and results of operations.

During the Second Lebanon War of 2006, between Israel and Hezbollah, a militant Islamic movement, rockets were fired from Lebanon into Israel, including into the Haifa area, where the Company's facility is located, causing casualties and major disruption of economic activities in northern Israel. An escalation in tension and violence between Israel and the militant Hamas movement (which controls the Gaza Strip) and other Palestinian Arab groups, culminated with Israel's military campaign in Gaza in December 2008, in November 2012 and again in July and August 2014 in an endeavor to prevent continued rocket attacks against Israel's southern towns, as well as other tension and violence between Israel and Palestinian Arab groups and individuals. It is unclear whether any negotiations that may occur between Israel and the Palestinian Authority will result in an agreement. In addition, Israel faces threats from more distant neighbors, in particular, Iran, an ally of Hezbollah and Hamas, and the militant group known as the Islamic State of Iraq and Syria.

Popular uprisings in various countries in the Middle East and North Africa are affecting the political stability of those countries. Such instability may lead to deterioration in the political and trade relationships that exist between the State of Israel and these countries. Furthermore, several countries, principally in the Middle East, restrict doing business with Israel and Israeli companies, and additional countries may impose restrictions on doing business with Israel and Israeli companies if hostilities in the region continue or intensify. Such restrictions may seriously limit the Company's ability to sell its products to customers in those countries. Similarly, Israeli corporations are limited in conducting business with entities from several countries. Parties with whom the Company may do business could decline to travel to Israel during periods of heightened unrest or tension. In addition, the political and security situation in Israel may result in parties with whom the Company may have agreements involving performance in Israel claiming that they are not obligated to perform their commitments under those agreements pursuant to force majeure provisions in such agreements. In addition, any hostilities involving Israel could have a material adverse effect on the Company's facilities including the corporate office or on the facilities of the Company's local suppliers, in which event all or a portion of the Company's inventory may be damaged, and the ability to deliver products to customers could be materially adversely affected.

Furthermore, the war and terrorism insurance the Company maintains may not be adequate to cover the losses associated with armed conflicts and terrorist attacks. Although the Israeli government in the past covered the reinstatement value of certain damages that were caused by terrorist attacks or acts of war, the Company cannot assure you that this government coverage will be maintained, or if maintained, will be sufficient to compensate the Company fully for damages incurred. Any losses or damages incurred by the Company could have a material adverse effect on the business.

Any hostilities involving Israel, terrorist activities or political instability in the region or the interruption or curtailment of trade between Israel and its present trading partners, or significant downturns in the economic or financial condition of Israel, could adversely affect the Company's operations and product development, cause the Company's revenues to decrease and adversely affect the share price.

*The Company's operations may be disrupted as a result of the obligation of management or key personnel to perform military service.*

The Company's operations could also be disrupted by the obligations of personnel to perform military service. Some of the Company's employees and independent contractors may be called upon to perform up to 54 days in each three-year period (and in the case of military officers, up to 84 days in each three-year period) of military reserve duty until they reach the age of 40 (and in some cases, depending on their specific military profession up to 45 or even 49 years of age) and, in certain emergency circumstances, may be called to immediate and unlimited active duty. In response to increases in terrorist activity, there have been periods of significant call-ups of military reservists and it is possible that there will be similar large-scale military reserve duty call-ups in the future. The Company's operations could be disrupted by the absence of a significant number of employees related to military service, which could materially adversely affect the business and results of operations.

*It may be difficult to enforce a judgment of a Canadian court against the Company, certain of the Company's officers and directors or the Israeli experts named in this Annual Report are in Israel, to assert Canadian securities laws claims in Israel or to serve process on certain of the officers and directors and these experts.*

The Company is incorporated in British Columbia, Canada. Other than Alan Rootenberg, all of the executive officers and directors reside in Israel, and substantially all of the Company's assets and a substantial portion of the assets of these persons are located in Israel. Therefore, a judgment obtained against the Company, or any of these persons, including a judgment based on the civil liability provisions of Canadian securities laws, may not be collectible in the Canada and may not be enforced by an Israeli court. It also may be difficult to effect service of process on these persons in Israel or to assert Canadian securities law claims in original actions instituted in Israel. Israeli courts may refuse to hear a claim based on an alleged violation of Canadian securities laws on the grounds that Israel is not the most appropriate forum in which to bring such a claim. In addition, even if an Israeli court agrees to hear a claim, it may determine that Israeli law and not Canadian law is applicable to the claim. If Canadian law is found to be applicable, the content of applicable Canadian. law must be proven as a fact by expert witnesses, which can be a time consuming and costly process. Certain matters of procedure will also be governed by Israeli law. There is little binding case law in Israel that addresses the matters described above. As a result of the difficulty associated with enforcing a judgment against the Company in Israel, one may not be able to collect any damages awarded by either a Canadian or foreign court.

*The Company may become subject to claims for payment of compensation for assigned service inventions by the Company's current or former employees, which could result in litigation and adversely affect the business.*

Under the Israeli Patents Law, 5727-1967, or the Patents Law, inventions conceived by an employee during the scope of his or her employment are regarded as "service inventions" and are owned by the employer, absent a specific agreement between the employee and employer giving the employee service invention rights. Section 134 of the Patents Law provides that if no agreement between an employer and an employee exists that prescribes whether, to what extent, and on what conditions the employee is entitled to remuneration for his or her service inventions, then such matters may, upon application by the employee, be decided by a government-appointed compensation and royalties committee established under the Patents Law, or the Committee. Although the Company's employees have agreed to assign to the Company all rights to any intellectual property created in the scope of their employment and most of the current employees, including all those involved in the development of the Company's intellectual property, have agreed to waive their economic rights with respect to service inventions, the Company cannot assure you that claims will not be brought against the Company by current or former employees demanding remuneration in consideration for assigned service inventions. If any such claims were filed, the Company could potentially be required to pay remuneration to the Company's current or former employees for such assigned service inventions, or be forced to litigate such claims, which could negatively affect the business.

**Risks Related to the Common Shares**

***An investment in the common shares is speculative and there can be no assurance of any return on any such investment.***

An investment in the Company's common shares is speculative, and there is no assurance that investors will obtain any return on their investment. Investors will be subject to substantial risks involved in an investment in the Company, including the risk of losing their entire investment.

*A more active, liquid trading market for the common shares may not develop, and the price of the common shares may fluctuate significantly.*

Although the common shares are listed on the TSX Venture Exchange ("TSXV") and the Nasdaq Capital Market, they have only been traded on such platforms for a relatively short period of time. There has been relatively limited trading volume in the market for the common shares, and a more active, liquid public trading market may not develop or may not be sustained. Limited liquidity in the trading market for the common shares may adversely affect a shareholder's ability to sell its common shares at the time it wishes to sell them or at a price that it considers acceptable. If a more active, liquid public trading market does not develop, the Company may be limited in its ability to raise capital by selling common shares and the Company's ability to acquire other companies or assets by using common shares as consideration. In addition, if there is a thin trading market or "float" for the common shares, the market price for the common shares may fluctuate significantly more than the stock market as a whole. Without a large float, the common shares would be less liquid than the stock of companies with broader public ownership and, as a result, the trading prices of the common shares may be more volatile, and it would be harder to liquidate any investment in the common shares. Furthermore, the stock market is subject to significant price and volume fluctuations, and the price of the common shares could fluctuate widely in response to several factors, including:

● the Company's quarterly or annual operating results;

● changes in the Company's earnings estimates;

● investment recommendations by securities analysts following the Company's business or the industry;

● additions or departures of key personnel;

● changes in the business, earnings estimates or market perceptions of the Company's competitors;

● the Company's failure to achieve operating results consistent with securities analysts' projections;

● changes in industry, general market or economic conditions;

● announcements of legislative or regulatory changes; and

● natural disasters and political and economic instability, including wars, terrorism, political unrest, results of certain elections and votes, emergence of a pandemic, or other widespread health emergencies (or concerns over the possibility of such an emergency, including for example, the COVID-19 pandemic), boycotts, adoption or expansion of government trade restrictions, and other business restrictions.

The stock market has experienced extreme price and volume fluctuations in recent years that have significantly affected the quoted prices of the securities of many companies. The changes often appear to occur without regard to specific operating performance. The price of the common shares could fluctuate based upon factors that have little or nothing to do with the Company and these fluctuations could materially reduce the share price.

*If we are not able to comply with the applicable continued listing requirements or standards of the TSX Exchange or Nasdaq, then the TSX Exchange or Nasdaq could delist our common shares.*

In order to maintain the listing of our common shares on the TSX Exchange and the Nasdaq Capital Market, we must satisfy minimum financial and other continued listing requirements and standards, including those regarding director independence and independent committee requirements, minimum stockholders' equity, minimum share price, and certain corporate governance requirements. There can be no assurances that we will be able to comply with such applicable listing standards.

*We are currently operating in a period of economic uncertainty and capital markets disruption, which has been significantly impacted by geopolitical instability due to the ongoing military conflict between Russia and Ukraine. Our business, financial condition and results of operations may be materially adversely affected by any negative impact on the global economy and capital markets resulting from the conflict in Ukraine or any other geopolitical tensions.*

U.S. and global markets are experiencing volatility and disruption following the escalation of geopolitical tensions and the start of the military conflict between Russia and Ukraine. On February 24, 2022, a full-scale military invasion of Ukraine by Russian troops was reported. Although the length and impact of the ongoing military conflict is highly unpredictable, the conflict in Ukraine could lead to market disruptions, including significant volatility in credit and capital markets.

Additionally, Russia's prior annexation of Crimea, recent recognition of two separatist republics in the Donetsk and Luhansk regions of Ukraine and subsequent military interventions in Ukraine have led to sanctions and other penalties being levied by the United States, European Union and other countries against Russia, Belarus, the Crimea Region of Ukraine, the so-called Donetsk People's Republic, and the so-called Luhansk People's Republic, including agreement to remove certain Russian financial institutions from the Society for Worldwide Interbank Financial Telecommunication, or SWIFT, payment system. Additional potential sanctions and penalties have also been proposed and/or threatened. Russian military actions and the resulting sanctions could adversely affect the global economy and financial markets.

Any of the abovementioned factors could affect our business, prospects, financial condition, and operating results. The extent and duration of the military action, sanctions and resulting market disruptions are impossible to predict, but could be substantial. Any such disruptions may also magnify the impact of other risks described in this prospectus. As of the date of this report the Company has not experienced any impact or effect to its business, prospects, financial condition and operating results from the conflict in Ukraine.

*Concentration of ownership of the common shares may enable one shareholder or a small number of shareholders to significantly influence matters requiring shareholder approval.*

As of the date of this Annual Report, members of the Company's management team beneficially own approximately 31.36% of the issued and outstanding common shares, of which 31.26% are beneficially owned by Bentsur Joseph, the Company's Chief Executive Officer. As a result, Mr. Joseph may have the ability to control substantially all matters submitted to the shareholders for approval including:

● election of the board of directors;

**●** removal of any of the directors;

● amendment of the articles; and

● adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving the Company.

In addition, the above ownership composition may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of the Company, which in turn could reduce the share price or prevent the Company's shareholders from realizing a premium over the share price. Any additional investors will own a minority percentage of the common shares and will have minority voting rights.

*Sales by the Company's shareholders of a substantial number of the common shares in the public market could adversely affect the market price of the common shares.*

A substantial portion of the total outstanding shares may be sold into the market at any time. A substantial portion of these shares are held by Mr. Joseph, the Company's Chief Executive Officer. Although the Company believes that Mr. Joseph has no current intention to sell a significant number of common shares, the Company cannot provide any such assurance. If Mr. Joseph was to decide to sell large amounts of common shares over a short period of time (presuming such sales were permitted) such sales could cause the market price of the common shares to drop significantly, even if the business is doing well. Further, the market price of the common shares could decline as a result of the perception that such sales could occur. These sales, or the possibility that these sales may occur, also might make it more difficult for the Company to sell equity securities in the future at a time and price that the Company deems appropriate.

*The exercise of outstanding warrants and options will have a dilutive effect on the percentage ownership of the common shares by existing shareholders.*

As of the date of this Annual Report, the Company had outstanding warrants to acquire 8,077,737 of common shares and options to purchase 2,799,844 common shares. Warrants and options are exercisable for prices ranging between $1.18 and $9.33. The expiration of the term of such options and warrants ranges from November 8, 2024, to August 21, 2032. If a significant number of such warrants and stock options are exercised by the holders, the percentage of common shares owned by the Company's existing shareholders will be diluted.

*The common shares will be traded on more than one market and this may result in price variations.*

The common shares have been trading on the TSXV and Nasdaq. Trading in the common shares on these markets will take place in different currencies and at different times, resulting from different trading days and different public holidays. The trading prices of the common shares on these markets may differ due to these and other factors. Any decrease in the price of the common shares on one market could cause a decrease in the trading price of the common shares on another market.

**ITEM 4. INFORMATION ON THE COMPANY**

&nbsp;&nbsp;&nbsp;&nbsp;**A.** **History and Development of the Company** 

The Company was incorporated in British Columbia, Canada under the *Business Corporations Act* (British Columbia) ("BCBCA"), on January 15, 2018 under the name ECC Ventures 1 Corp. ("ECC1"). On July 20, 2020, the Company changed its name to "A2Z Smart Technologies Corp." to better reflect the Company's business plan.

The Company's principal place of business and its registered and records office of the Company is located at 1600 - 609 Granville Street Vancouver, British Columbia, Canada V7Y 1C3; telephone +16475585564. The Company has appointed Cogency Global Inc., with an address at 122 East 42nd Street, 18th Floor, New York, NY 10168; telephone 1-800-221-0102, as its agent for service of process in the United States. The Company's operational offices are located at Alon 2 Tower, 94 Yigal Alon St., TelAviv, Israel.

On April 18, 2018, ECC1 completed its initial public offering on the TSXV, under the trading symbol "EONE.P", by issuing 2,000,000 common shares at a price of CAD$0.10 per share for aggregate proceeds of CAD$200,000.

On September 11, 2019, the Company, its wholly owned subsidiary 1219054 B.C. Ltd ("Acquireco") and A2Z Advanced Solutions Ltd ("A2ZAS"), a company incorporated in Israel, entered into an arrangement agreement ("Arrangement Agreement"), pursuant to which ECC1, through a court-approved plan of arrangement: (i) initially acquired 99.46% of the issued and outstanding ordinary shares of A2ZAS through Acquireco, with the remaining shares of A2ZAS ("Remaining Shares") being acquired following the receipt of regulatory approvals under Section 350 of the Israel Companies Law; (ii) completed a share consolidation of its common shares on a 1.4 to 1 basis; (iii) issued 41,690,578 post-consolidation common shares of ECC1 to the shareholders of A2ZAS; and (iv) changed its name to "A2Z Technologies Canada Corp."

On December 16, 2019, Acquireco announced the completion of a non-brokered private placement of 1,000,000 subscription receipts (each a "Subscription Receipt") at a price of $0.50 per Subscription Receipt for aggregate gross proceeds of $500,000. Upon the satisfaction of the escrow release conditions, each Subscription Receipt automatically converted into common shares for no additional consideration. The offering of Subscription Receipts was completed in connection with the Company's Qualifying Transaction with A2ZAS. On December 18, 2019, the transactions contemplated by the Arrangement Agreement (except for the acquisition of the Remaining Shares) were completed. On the same day, the common shares commenced trading on the TSXV under the symbol "AZ".

A2ZAS is the parent company of Advanced Military Solutions Ltd. ("A2ZMS"). A2ZMS was incorporated under the laws of the State of Israel in November 1998 under name Eligal Laboratories Ltd., as an engineering firm providing a cost-efficient solution for organizations to outsource maintenance of critical and sophisticated equipment. In 1992, Eligal Laboratories Ltd. expanded into the production of unmanned ground vehicle robotics as a second area of operations. In 2003, Eligal Laboratories Ltd. changed its name to Intelligent Robotics, Ltd., and in 2017, the name was changed once again to "Advanced Military Solutions Ltd." During this time period, all sales were conducted in Israel and were focused on Israeli clientele.

In February 2019, A2ZAS completed the purchase of 80% of the share capital of AAI Advanced Automotive Innovations Inc. ("AAI") by way of the issuance of 7,664,788 ordinary shares of A2ZAS and warrants to purchase 3,832,394 ordinary shares of A2ZAS, exercisable at a purchase price of $0.23333 per share and with a term ending on December 31, 2021. In connection with the Arrangement Agreement, the ordinary shares and warrants issued to the sellers of AAI were exchanged for shares and warrants of the Company. AAI holds the rights to a certain technology, by way of a patent application with the U.S. Department of Commerce, number 62/801,140 titled "Device and Methodology of Anti Inflammation Capsule, regarding a capsule, "Fuel Tank Inertia Capsule System" ("FTICS"), that can be inserted into automobile gasoline tanks in order to suppress combustibility of any remaining gasoline or gasoline fumes inside the gasoline tank in the event of a collision. The FTICS technology remains in development as of the date of this Annual Report.

On December 30, 2019, A2ZAS entered into a call option agreement ("Call Option Agreement") with the Company's Chief Executive Officer, Bentsur Joseph, pursuant to which Mr. Joseph granted A2ZAS a 10 year option ("Call Option") to purchase 66,000 ordinary shares of Cust2Mate, constituting 19% of Cust2Mate's issued and outstanding share capital (on a fully diluted basis) for an aggregate purchase price of $66,000. On November 5, 2020, A2ZAS and Mr. Joseph entered into a share purchase agreement pursuant to which A2ZAS exercised the Call Option and acquired an additional 190,549 ordinary shares of Cust2Mate, together constituting 77.51% of the issued and outstanding shares of Cust2Mate (on a fully diluted basis) for an aggregate purchase price of approximately $1.56 million. The acquisition of Cust2Mate was completed on November 16, 2020 and as a result, Mr. Joseph no longer owns any securities of Cust2Mate.

On January 30, 2020, the Company announced the issuance of 833,336 units of the Company (each, a "January Unit") at a price of CAD$0.60 per unit for gross proceeds of CAD$500,001.60. Each January Unit consisted of one common share and one common share purchase warrant (each, a "January Warrant"), with each such January Warrant entitling the holder to acquire an additional common share at a price of CAD$0.65 until January 30, 2022. In addition, the Company announced that it has issued 92,493 common shares at a price of $0.726 per share, to Israel Morgenshtern ("Morgenshtern") as consideration for services rendered by Morgenshtern to the Company.

On April 29, 2020, the Company announced the issuance of 29,762 common shares to Waterside Capital Advisors Inc. ("Waterside") and 200,341 common shares to Morgenshtern as consideration for services rendered by Waterside and Morgenshtern to the Company pursuant to the terms of consulting agreements. The common shares were issued to Waterside and Morgenshtern at deemed prices of $0.42 and $0.4405 per share, respectively.

On July 20, 2020, the Company changed its name to "A2Z Smart Technologies Corp." to better reflect the Company's business plan.

On August 4, 2020, the Company announced the common shares commenced trading on the OTCQX Venture Market under the symbol "AAZZF". On September 23, 2020, the common shares commenced trading on the OTCQX® Best Market under the symbol "AAZZF". The common shares were delisted from the OTCQX in connection with the Company's uplisting to Nasdaq in January 2021.

On November 16, 2020, the Company announced the issuance of 13,350,460 units (each, a "February Unit") at a price of CAD$0.625 per unit for gross proceeds of CAD$8,344,043. Each February Unit consisted of one common share and one common share purchase warrant (each, a "February Unit Warrant"), with each February Unit Warrant entitling the holder thereof to purchase one additional common share at a price of CAD$0.90 at any time prior to November 10, 2025.

On December 29, 2020, the Company announced the issuance of 4,099,894 units (each, a **"**December Unit") at a price of CAD$0.625 per unit for gross proceeds of CAD$2,562,434. Each December Unit is comprised of one common share and one common share purchase warrant (each, a "December Unit Warrant"), with each December Unit Warrant entitling the holder thereof to purchase one additional common share at a price of CAD$0.90 at any time prior to December 24, 2025.

On April 9, 2021, the Company completed a private placement of units (each, an "April Unit") for aggregate gross proceeds of $1,804,170, with each April Unit consisting of one common share and one common share purchase warrant (each, an "April Unit Warrant"). Each April Unit Warrant entitles the holder to acquire one additional common share at a price of $3.68 per share until April 14, 2023.

On June 3, 2021, the Company completed a private placement of units (each, a "June Unit") for aggregate gross proceeds of $8,850,028, with each June Unit consisting of one common share and one common share purchase warrant (each, a "June Unit Warrant"). Each June Unit Warrant entitles the holder to acquire one additional common share at a price of $3.68 per share until May 28, 2023.

On August 12, 2021, the Company announced it set August 19, 2021 as the effective date for a consolidation of its common shares on the basis of one (1) post-consolidation common share for each three (3) pre-consolidation common shares (the "Consolidation").

On January 5, 2022, the common shares commenced trading on The Nasdaq Capital Market LLC ("Nasdaq") and were delisted from the OTCQX® Best Market.

On January 17, 2022, the Company announced that it entered into a share purchase agreement (the "SPA") to acquire all of the issued and outstanding shares of Isramat Ltd ("Isramat"), an Israeli manufacturer of precision metal parts (the "Isramat Acquisition"). The Isramat Acquisition vertically integrates certain manufacturing capabilities for the production of the Cust2Mate smart cart while complementing existing contract manufacturing partnerships to support anticipated worldwide growth. As consideration for the acquisition of Isramat, the Company paid an aggregate acquisition price of NIS 9.3 million (approximately US$2.989 million) (the "Consideration"). NIS 2.8 million (approximately US$0.9 million) of the Consideration will be paid in cash and the remaining Consideration in the amount of NIS 6.5 million (approximately US$2.089 million) will be paid through the issuance to the shareholders of Isramat (the "Isramat Shareholders") of 273,774 common shares (the "Acquisition Shares") at a deemed price per Acquisition Share of US$7.6311 (CAD$9.5247) (the "Equity Consideration"). The SPA also provides that in the event that the aggregate proceeds received by an Isramat Shareholder from the sale of its Acquisition Shares during the lock-up period (the "Lock-up"), together with the value of its unsold Acquisition Shares as of the end of such period, is lower than its pro rata portion in the Equity Consideration, A2Z will pay the difference in cash to such Isramat Shareholder. The Acquisition Shares will be subject to the Lock-up and shall be released as follows: (i) during the first six months following signing of the SPA (but in any event not prior to four months and one day following the issuance of the Acquisition Shares), the holders of the Acquisition Shares will not be allowed to sell or otherwise transfer any of the Acquisition Shares, (ii) during each of the 20 months following the 6-month period detailed above, each Isramat Shareholder will be entitled to sell or otherwise transfer up to 1/20 of his pro rata portion of the Acquisition Shares, subject to applicable securities laws, and (iii) following the lapse of 26 months following the signing of the SPA, each Isramat Shareholder shall be entitled to freely trade its Acquisition Shares. The Isramat Acquisition subsequently closed on February 3, 2022.

On November 2, 2022, the Company completed a private placement ("November 2022 Private Placement") that resulted in the issuance of 2,978,337 units ("Unit"), at a price per unit of $1.35 (CAD$1.86), for gross proceeds of approximately $4,021, 000. Each Unit consists of one common share and one half of one common share purchase warrant. An aggregate of 1,489,169 warrants were issued upon final closing which when exercised in accordance with the terms of the warrant certificates, and upon payment of an exercise price of $1.50 (CAD$2.04), which will result in the issuance of an additional 1,489,169 common shares ("November 2022 Private Placement Warrants"). The warrants are exercisable for a period of 24 months. A finder's fee of $260 thousand (CAD$349,000) was paid and 237,200 November 2022 Private Placement Warrants were issued in connection with the November 2022 Private Placement.

On March 13, 2023, the Company announced that it has closed, in escrow, the issuance of 1,783,561 units ("Units") at a price per Unit of US$1.46 (CAD$1.95), for gross proceeds of US$2,604. Each Unit consists of one common share and one half of one common share purchase warrant (each whole such warrant a "Warrant"). An aggregate of 891,778 Warrants will be issued upon final closing which when exercised in accordance with the terms of the warrant certificates, and upon payment of an exercise price of CAD$2.35 (US$1.75), will result in the issuance of an additional 891,778 common shares (March 2023 Private Placement Warrants"). A finder's fee of $208 (CAD$290,000) is to be paid in respect of the closing, and 142,685 March 2023 Private Placement Warrants were issued in connection with the March 2023 Private Placement with the same terms as the warrants issued to the investors.

Our website address is www.a2zas.com. Information contained on, or accessible through, our website is not a part of this Annual Report and the inclusion of our website address in this Annual Report is an inactive textual reference. The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding registrants that make electronic filings with the SEC using its EDGAR system.

&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Business Overview** 

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| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | |
|  |<br>Precision Metal Parts | Advanced Engineering | Smart Carts |<br>**Total (\*)** |
| *Revenues* | $3958 | $1705 | $3688 | $9351 |

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---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | |
|  |<br>Precision Metal Parts | Advanced Engineering | Smart Carts |<br>**Total (\*)** |
| *Revenues* | $- | $1935 | $750 | $2685 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | | **Year Ended December 31, 2020** | **Year Ended December 31, 2020** | |
|  |<br>Precision Metal Parts | Advanced Engineering | Smart Carts |<br>**Total (\*)** |
| *Revenues* | $- | $1068 | $- | $1068 |

---

(\*) All revenues are generated in the state of Israel.

Revenues from the smart cart segment are generated from one customer, and account for 40%, 28% and 0% of the Company's revenues for the years ended December 31, 2022, 2021 and 2020. Revenues from the advanced engineering segment are generated from numerous customers, and account for 18%, 72% and 100% of the Company's revenues for the years ended December 31, 2022, 2021 and 2020. Revenues from the precision metal parts segment are generated from dozens of customers, and account for 18%, 0% and 0% of the Company's revenues for the years ended December 31, 2022, 2021 and 2020.

**Business of the Company**

The Company is an innovative technology company specializing in the application of the Company's existing military and civilisation technology for supermarket "smart carts" (the "**Cust2Mate Carts**"). The Company, through its subsidiaries, has four main business lines: (i) the development and commercialization of retail automation solutions, in particular for large grocery stores and supermarkets, including the Cust2Mate Carts (the "**Cust2Mate Products**"); (ii) manufacturing of precision metal parts (following the acquisition of a new subsidiary, Isramat, as outlined in further detail below); (iii) the provision of maintenance services utilizing the application of advanced engineering capabilities (the "**Maintenance Services**"); and (iv) the development of the Company's FTICS technology and a vehicle device cover for the military and civilian automotive industry (collectively, the "**Automotive Products**").

Historically, the Company's revenues were principally generated from the maintenance services that are provided to the Israeli military/security market. The Company's products, which have historically been sold to the Israeli military/security markets, include unmanned remote-controlled vehicles of various sizes and capabilities designed for intricate bomb disposal, counter terrorism, and firefighting, as well as energy storage power packs, all of which are fully commercialized for military use.

During 2020, the Company began to rapidly adapt its existing technology and know-how for the civilian markets, including the development of its Cust2Mate Products. This was in addition to the continuation of the Company's existing sales to the Israeli military/security markets. The expansion into the civilian markets led to significantly increased expenditures which the Company was able to finance through a series of equity raises in 2021 and 2022. The Company has not, and does not intend to, export any military or defense related technology and accordingly, no approvals are required.

In 2022, and through 2023, the Company continues to focus its attention on its Cust2Mate Products division and aims to become the leading mobile self-checkout system in the international market, providing the optimum solution which simultaneously meets the needs of both shoppers and supermarket retailers. The Company will continue to sell its Maintenance Services in Israel only and has suspended the further development of its military products. The Maintenance Services division of the Company is self-sustaining financially. It provides a steady base for the Company's operations and the Company intends to maintain this operation and expand it to cover the maintenance and support services required by the Cust2mate Products. To the extent that future research, development and marketing expenditures are concerned, the Company currently intends on investing the majority of its resources in the smart cart industry and towards the development of the Cust2Mate Products. The Company believes its current technological and operational capabilities are most effectively focused on growing the Company's position in the smart cart industry.

During the first quarter of 2022, the Company completed the acquisition of 100% of the shares of Isramat, a privately held Israeli company. This acquisition vertically integrates certain manufacturing capabilities for the production of the Cust2Mate Products, such as precision metal fabrication of parts, while complementing existing contract manufacturing partnerships to support the Company's growth.

The raw materials required by the Company's subsidiaries are readily available from multiple suppliers worldwide and their purchase costs do not fluctuate more than standard raw materials.

***Cust2Mate Products***

The move to reduce consumer friction in all aspects of the shopping experience is a main driver for ongoing technology development and greater awareness of the need for an automated "smart cart" product, like the Company's Cust2Mate Products.

Product and Technology

Cust2Mate's solution combines scanning and computer vision technology. The solution is stackable and lightweight, with a robust recognition platform that provides a higher level of accuracy in product identification, leverages in-store Wi-Fi and utilizes cutting edge computing. Our recent partnership with SensePass Ltd. ("**SensePass**"), allowing the Company to utilize SensePass' "SensePay" Platform, a payment network connecting mobile payment applications, e-wallets and other financial and complementary services to points of sale ("**SensePay**"), also expands the accepted payment capabilities, to further reduce consumer and integration friction.

The three-layer solution integrates mobile self-checkout ("**MSCO**"), app marketplace and big data capabilities, and is designed to increase revenue opportunities from payments, personal advertisements, e-coupons, analytics, and more. The Cust2Mate Carts will be manufactured in various sizes to accommodate the needs of a varied customer base: large carts for hypermarkets, medium carts for supermarkets, and small carts for city stores. We project manufacturing costs will drop within 1-2 years.

As part of the Company's application marketplace strategy, the Company is seeking additional partnerships with applications that contribute to the retailer business in order to create additional revenue streams. In each of these partnerships, and additional partnerships the Company is seeking, the Company's MSCO is integrated into its partners' software and is jointly marketed to other types of retailers that could benefit from those combined applications with the Company and its partners, sharing the revenue generated from the ultimate customer in agreed upon percentages.

Marketing and Sales

We are currently marketing directly to targeted customers and indirectly through local partners. Our local partners take full responsibility for support, training, implementation and sales of the Cust2Mate Cart, while Cust2Mate focuses on product development and direct contact with strategic customers.

As of the date hereof, the Company's official local partners include distributors in the United States, Mexico, Germany, and Romania. In the United States, we have a non-exclusive relationship with our distributor, who provides products and services to several thousands of stores nationally. Throughout Mexico, our distributor, who we have a non-exclusive relationship with, provides information technology services and information technology consulting to stores. In Germany, our distributor, who we have a non-exclusive relationship with, is a retail produce provider throughout the country. Lastly, in Romania, we have an exclusive distributor relationship with a recognized information technology leader to the retail industry in Romania.

Our go-to-market strategy is built on the retail, grocery, and do-it-yourself ("DIY") markets, with a focus on supermarkets and hypermarket food chains within Tier 1 (thousands of stores) and Tier 2 (hundreds of stores). Cust2Mate will manage targeted customers in selected regions directly, using select local partners for sales and distribution to chains in Tier 2 and Tier 3 (tens of stores). The local partners will take full responsibility for support, training, implementation and sales, while Cust2Mate will focus on product development and direct contact with strategic customers.

Business Targets

Cust2Mate aims to generate orders of several thousand Cust2Mate Carts in 2023.<sup>2</sup> The penetration strategy is to run several Pilot Projects (as defined herein), of which the Phase 4 – Pilot (as described below) of each Pilot Project will consist of 10-15 Cust2Mate Carts used by shoppers in selected customer stores for a period of 30-90 days, fully integrated with the store's software. The pilots will be fully subsidized for strategic retailers and at least partially paid for by other customers.

Cust2Mate is currently running seven Pilot Projects, with one store per Pilot Project. As of the date of this annual report, Cust2Mate has completed one Pilot Project with Yochananof, which, following completion, became an order for 1,000 Cust2mate Smart Carts which the Company is in the process of delivering, and on December 11, 2022 the order was increased by an additional 300 Smart Carts. In addition, the Company entered into a Maintenance and Support Agreement with Yochananof, under which Cust2mate will supply customary maintenance and support for 36 months after delivery, the first 12 months without extra charge and thereafter against annual payment of 8% of the value of each cart. The aggregate amounts due for the purchase of the carts and maintenance and support is approximately US$13 million (including Value Added Tax). The Maintenance Services division of the Company will cover the maintenance and support services required by the Cust2mate Products in Israel.

Pilot Project Phases

As part of our strategy for proof of concept implementation, Cust2Mate will follow a multi-phase pilot project evaluation process (the "**Pilot Projects**"):

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Phase 1 - Discovery:</u> Conduct a workshop with the customer to review, discuss, and analyze customer business and requirements, which
 is key for the pilots success. Resources allocated by Cust2Mate for this phase include a project manager, product manager, and technology
 expert. The estimated time to complete the discovery stage is approximately 2 weeks.

2. <u>Phase 2 - Integration:</u> Together with customers, conduct remote integration into the retailer's store systems. The estimated time
 to complete the integration stage is approximately 10 weeks but depending on the customers' environment and systems, can take
 several months.

3. <u>Phase 3 - Initial Evaluation</u>: The customer, with the full support of Cust2Mate, will conduct an initial evaluation test in the customer's
 labs. The evaluation test will be planned and scheduled based on the customer's processes. This is the final testing phase
 before the pilot. The estimated time to complete the initial evaluation stage is approximately 2 weeks.

4. <u>Phase 4 - Pilot:</u> The customer, with the full support of Cust2Mate, will implement the solution in a single pilot store, for a period
 of 30-90 days and will include 10-25 Cust2Mate Carts.

5. <u>Phase 5 - Roll Out:</u> Following the successful completion of the pilot, rollout for the entire chain could replace between 30% and 80%
 of the current cart fleet.

All references herein to "Pilot Projects" relate to the above multi-phase pilot project evaluation process unless further specified by references to particular phases of the Pilot Projects or unless the context specifies otherwise.

<sup>2</sup> See footnote 1.

The following table details the status of each of the Company's current Pilot Projects:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Supermarket Name and/or Country** | **Numbers of Cust2Mate Carts in Pilot** | **Date Phase 1 – Discovery Began** | **Date Phase 4 – Pilot is Expected to Begin<sup>(1)</sup>** | **Length of Phase 4 – Pilot<sup>(2)</sup>** | **Current Status** |
| UAE | 12 Carts | January 2021 | Q4 2023 | 45 days | Phase 1 - Discovery<sup>(3)</sup> |
| Evergreen | 12 Carts | January 2022 | Complete | 90 days | Phase 4 – Pilot <sup>(4)</sup> |
| Morton Williams | 10 Carts | July 2022 | Complete | 30 days | Phase 4 – <u>Pilot</u><sup>(4)</sup> |
| Chedraui | 12 Carts | March 2022 | Q1 2023 | 60 days | Phase 4 - Pilot |
| Singapore | 12 Carts | April 2022 | Q4 2023 | 60 days | Phase 3 – <u>Initial Evaluation</u> |
| Migros Ticaret | 10 Carts | August 2022 | Q2 2023 | 60 days | Phase 2 - Integration |
| European chain | 14Carts | August 2022 | Q1 2023 | 120 days | Phase 4 – Pilot |

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**<u>Notes</u>**:

(1) Based on correspondence with the customers and progress to date.

(2) The length of the Phase 4 – Pilot portion of the Company's multi-phase Pilot Project evaluation process refers to the actual time period that the Cust2Mate Carts are fully operational at the client's location and open to the use of the shoppers. After this length of time, the client will decide if they want to move to Phase 5 – Roll Out. As described above, prior to Phase 4 – Pilot, there are integration and discovery phases which are aimed at analysing the clients' business and integrating the Cust2Mate Carts with the clients' systems so they can be operational.

(3) This Pilot Project is currently paused due to certain geopolitical barriers and priorities of the retailer shifting.

(4) The Phase 4 – Pilot has concluded at Evergreen and Morton Williams and the Company is waiting on a decision from the client as to whether they will proceed with Phase 5 – Roll Out.

With the slow down in development of its Automotive Products and Military/Civilian Products in order to focus on the development of its Cust2Mate Products, the Company does not currently have any ongoing programs for its Automotive Products or Military/Civilian Products.

Manufacturing

The Company, through its wholly-owned subsidiary Cust2Mate, utilizes local Israeli and international manufacturing companies to meet the demand form pilot programs and customer orders

Research and Development

For the year ended December 31, 2022, the Company incurred approximately $4,462,000 of research and development expenses. For the year ended December 31, 2021, the Company incurred approximately $3,222,000 of research and development expenses. For the year ended December 31, 2020, the Company incurred approximately $418,000 of research and development expenses.

The Company is currently conducting research and development on its Cust2Mate Carts using a combination of in-house personnel and third party contractors. The Company's Pilot Projects include the second-generation Cust2Mate Carts (Generation 2.5). The Company, over the next 4 months, will be developing the updated second-generation Cust2Mate Carts (Generation 2.9), which will include additional hardware and software features, weigh less, and will be cheaper to mass manufacture, and will be produced and manufactured by Flex pursuant to the Flex Manufacturing Agreement.

The Company expects its Generation 2.9 Cust2Mate Carts to be released in Q2 2023.

If the Company does not complete ongoing financings, the above milestones for the completion of the Generation 2.9 Cust2Mate Carts may not be satisfied or the timeline for completion of each step may be delayed.

***Automotive Products***

Historically, the majority of the product development work (FTICS - engineering, electronics, electro-mechanics, sensory, programming and algorithms; and smart car cover – programming, electro-mechanics, power supply, charging, and heating components) has been conducted in-house. Certain aspects of mechanical and chemical engineering and testing for the FTICS, has been completed by external third-party contractors.

As at the date hereof, the Company has slowed the development of its Automotive Products to focus on the development of its Cust2Mate Products. To the extent that the Company is able to raise sufficient funds, the Company intends to resume the development of the Automotive Products.

***Maintenance Services***

Historically, any manufacturing by the Company of unmanned ground vehicles and energy source packs has been outsourced to third parties. As at the date hereof, the Company has put the development of its Military and Civilian Products on hold in order to focus on the development of its Cust2Mate Products.

**C. Organizational Structure** 

The following chart sets out all of the Company's material subsidiaries as at the date hereof, their jurisdictions of incorporation and the Company's direct and indirect voting interest in each of these subsidiaries:

![](form20-f_001.jpg)

**D. Property, Plants and Equipment**

The corporate headquarters of A2Z Smart Technologies Corp. is located at 1600 - 609 Granville Street Vancouver, British Columbia, Canada V7Y 1C3. The office is approximately 1,200 square feet and is leased for $300 per month under a lease that expires upon 30 days advance notice. One of the Company's Israeli subsidiaries leases its facility which expires on March 1, 2024. Lease payments are approximately $11 per month ($132 annually). Another one of the Company's Israeli subsidiaries leases its facility which expires on June 30, 2023. Lease payments are approximately $3.5 per month ($45 annually).

**ITEM 4A. UNRESOLVED STAFF COMMENTS**

None.

**ITEM 5. OPERATING AND FINANCIAL REVIEW AND PROSPECTS**

The following discussion and analysis should be read in conjunction with our financial statements and related notes and the related information included elsewhere in this Annual Report. This discussion and other parts of this Annual Report contain forward-looking statements based upon current expectations that involve risks and uncertainties. Our actual results and the timing of selected events could differ materially from those anticipated in these forward-looking statements as a result of several factors, including those set forth under "Risk Factors" and elsewhere in this Annual Report.

The preparation of financial statements in conformity with these accounting principles requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities at the financial statement date and reported amounts of revenue and expenses during the reporting period. On an on-going basis, we review our estimates and assumptions. The estimates were based on historical experience and other assumptions that we believe to be reasonable under the circumstances. Actual results are likely to differ from those estimates or other forward-looking statements under different assumptions or conditions, but we do not believe such differences will materially affect our financial position or results of operations. Our actual results may differ materially as a result of many factors, including those set forth under the headings entitled "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors".

**COMPANY OVERVIEW AND DESCRIPTION OF THE BUSINESS**

The Company is an innovative technology company specializing in the application of the Company's existing military and civilisation technology for supermarket "smart carts" (the "**Cust2Mate Carts**"). The Company, through its subsidiaries, has four main business lines: (i) the development and commercialization of retail automation solutions, in particular for large grocery stores and supermarkets, including the Cust2Mate Carts (the "**Cust2Mate Products**"); (ii) manufacturing of precision metal parts (following the acquisition of a new subsidiary, Isramat, as outlined in further detail below); (iii) the provision of maintenance services utilizing the application of advanced engineering capabilities and the production of unmanned remote-controlled vehicles and energy power packs for the Israeli military (the "**Military and Civilian Products**"); and (iv) the development of the Company's FTICS technology and a vehicle device cover for the military and civilian automotive industry (collectively, the "**Automotive Products**"). With the slow down in development of its Automotive Products and Military and Civilian Products, the company does not have any ongoing programs for its Automotive Products and Military and Civilian Products.

**RESULTS OF OPERATIONS**

The following is a discussion of the results of operations which have been derived from the financial statements of the Company for the years ended December 31, 2022, 2021 and 2020 (in thousands of U.S. Dollars):

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| | | | |
|:---|:---|:---|:---|
|  | **Year ended<br> December 31,** | **Year ended<br> December 31,** | **Year ended<br> December 31,** |
|  | **2022** | **2021** | **2020** |
| **Revenues** | $9351 | $2685 | $1068 |
| Cost of revenues | 7517 | 2029 | 853 |
| **Gross profit** | 1834 | 656 | 215 |
| **Expenses:** |  |  |  |
| Research and development costs | $4462 | $3222 | $415 |
| Sales and marketing costs | 475 | 102 | 108 |
| General and administration expenses | 13599 | 6494 | 2365 |
| **Operating loss** | (16702) | (9162) | (2676) |
| Loss on revaluation of warrant liability | 254 | 30895 | 3228 |
| Financial income |  |  | (75) |
| Financial expense | 1391 | 91 | 107 |
| **Loss before taxes on income** | $(18347) | $(40148) | $(5936) |
| Income tax expense | - | (142) | (17) |
| **Loss for the year** | $(18347) | $(40290) | $(5953) |
| **Other comprehensive income** |  |  |  |
| **Item that will not be reclassified to profit or loss:** |  |  |  |
| Adjustments arising from translating financial statements of foreign operations | (936) | 555 | (1282) |
| &nbsp;&nbsp;&nbsp;Remeasurement loss from defined benefit plans | 10 | - | 13 |
| &nbsp;&nbsp;&nbsp;**Other comprehensive income (loss)** | (926) | 555 | (1269) |
| **Total comprehensive loss for the year** | $(19273) | $(39735) | $(7222) |
| **Less: Net loss attributable to non-controlling shareholders** | (1790) | (1127) | (32) |
| **Net loss attributable to A2Z's shareholders** | $(17483) | $(38608) | $(7190) |
| &nbsp;&nbsp;&nbsp;**Basic and diluted loss per share** | $(0.63) | $(1.70) | $(0.43) |
| &nbsp;&nbsp;&nbsp;**Weighted average number of shares outstanding** | 27681778 | 23340621 | 16758323 |

---

***<u>Year ended December 31, 2022 compared to the year ended December 31, 2021</u>***

 ****

Revenues

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2021** |
| Advanced Engineering | $**1705** | $1935 |
| Smart Carts | **3688** | 750 |
| Precision Metal Parts | **3958** | - |
|  | $**9351** | $2685 |

---

 ****

Revenues for the year ended December 31, 2022, were $9,351 thousand as compared to $2,685 thousand for the year ended December 31, 2021. The increase is due primarily to the inclusion of revenues of Isramat ($3,958 thousand), a newly acquired subsidiary, from February 3, 2022, which provides the Company with a new operating segment – precision metal parts. Revenues from the Company's smart cart segment for the year ended December 31, 2022, were $3,688 thousand as compared to $750 thousand for the year ended December 31, 2021. The revenues in 2021 were from a one-time transaction; revenues from the supply of smart carts started in 2022, with the delivery of the first smart carts to Yochananof, the Company's first pilot project. Revenues from the Company's traditional operations remain largely consistent with the year ended December 31, 2022.

While revenues from the smart cart division is currently derived from only one customer, revenues from the Company's advanced engineering and precision metal parts segments are derived from hundreds of customers.

Cost of revenues

Cost of revenues for the year ended December 31, 2022, were $7,517 thousand as compared to $2,029 thousand for the year ended December 31, 2021. The increase is due primarily to the inclusion of cost of revenues of Isramat ($3,462 thousand). Cost of revenues in the smart cart segment for the year ended December 31, 2022, was $2,892 thousand as compared to $nil for the year ended December 31, 2021.

The Company's gross margin in the advanced engineering segment fluctuates depending on the level of revenue, since a large component relates to fixed payroll costs, and the nature of the project, as some project types have higher margins than others. The gross margin for smart carts is nil in the prior year as there were no revenues during that period.

Research and development expenses

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2021** |
| Payroll and related expenses | $**867** | $510 |
| Subcontractor and outsourced work | **3362** | 2477 |
| Legal fees | **20** | 99 |
| Pilot expenses and other | **212** | 136 |
|  | $**4462** | $3222 |

---

Research and development expenses related to the Company's Cust2Mate product. Most of these expenses relate to outsourced software engineers that work on integrating future customers' point of sales systems to the Company's software.

Research and development expenses were $4,462 thousand for the year ended December 31, 2022, as compared to $3,222 thousand for the year ended December 31, 2021. The increase is primarily due to an increase in subcontractor and outsourced work costs for the development of the Company's Cust2Mate smart cart.

Sales and marketing

Sales and marketing expenses were $475 thousand for the year ended December 31, 2022, as compared to $102 thousand for the year ended December 31, 2021. The increase is primarily due to an increase in marketing costs for the marketing of the Company's Cust2Mate smart cart.

General and administrative expenses

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2021** |
| Payroll and related | $**3990** | $1027 |
| Professional fees | **2233** | 3417 |
| Share-based compensation | **4868** | 842 |
| Depreciation and amortization | **420** | 321 |
| Office maintenance | **437** | 275 |
| Public company related expenses | **316** | 254 |
| Rent and related | **126** | 96 |
| Travel | **150** |  |
| Directors and officers insurance | **267** | 119 |
| Doubtful debts | **382** |  |
| Other | **410** | 143 |
|  | $**13599** | $6494 |

---

General and administrative expenses were $13,599 thousand for the year ended December 31, 2022, as compared to $6,494 thousand for the year ended December 31, 2021. The increase is primarily due to the increase in share-based compensation which amounted to $4,868 thousand for the year ended December 31, 2022, compared to $842 thousand for the year ended December 31, 2021. Another significant factor to the rise in general and administrative expenses is the increase in payroll which amounted to $3,990 thousand for the year ended December 31, 2022, compared to $1,027 thousand for the year ended December 31, 2021. The increase in payroll is mainly due to the growth of operating activities of the Company's smart cart segment and to the inclusion of payroll expenses of Isramat ($1,165 thousand).

Loss on revaluation of warrant liability

Loss on revaluation of warrant liability for the year ended December 31, 2022, was $254 as compared to a loss of $30,895 for the year ended December 31, 2021. The loss in 2021 relates to the increase in the value of the warrant liability as of December 31, 2021, which was subsequently charged to equity as certain warrant holders agreed to change the exercise price of the warrants to the Company's functional currency.

Financial expenses

Financial expenses, net for the year ended December 31, 2022, were $1,391 thousand as compared to $91 thousand for the year ended December 31, 2021. The increase in expenses is mainly a result of revaluation of the commitment to compensate former shareholders of Isramat. Financial expenses comprise interest on loans and leases, interest and accretion in respect of application of IFRS 16, revaluation of a provision, and credit card charges.

***<u>Year ended December 31, 2021 compared to the year ended December 31, 2020</u>***

 ****

Revenues

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2021** | **2020** |
| Advanced Engineering | $**1935** | $1068 |
| Smart Carts | **750** | - |
|  | $**2685** | $1068 |

---

 ****

Revenues for the year ended December 31, 2021 were $2,685 thousand as compared to $1,068 thousand for the year ended December 31, 2020. The increase in revenues from the advanced engineering segment is due in part by the recovery from the effects of the COVID-19 pandemic and initial revenues from the Cust2Mate smart cart segment which amounted to $750 thousand in the year ended December 31, 2021. While revenues from the smart cart division is currently derived from only one customer, revenues from the Company's advanced engineering segment are derived from up to dozens of customers.

Cost of revenues

Cost of revenues for the year ended December 31, 2021 were $2,029 thousand as compared to $853 thousand for the year ended December 31, 2020. Cost of revenues in the advanced engineering segment for the year ended December 31, 2021 were $1,794 thousand as compared to $853 thousand for the year ended December 31, 2020. The increase is due to the increase in revenues. Cost of revenues in the smart cart segment for the year ended December 31, 2021 was $235 thousand as compared to nil for the year ended December 31, 2020, as there were no revenues in this segment in the prior year.

The Company's gross margin in the advanced engineering segment fluctuates depending on the level of revenue, since a large component relates to fixed payroll costs and the nature of the project, as some project types have higher margins than others.

Research and development expenses

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2021** | **2020** |
| Payroll and related expenses | $**510** | $410 |
| Subcontractor and outsourced work | **2477** |  |
| Legal fees | **99** |  |
| Other | **136** | 8 |
|  | $**3222** | $418 |

---

Research and development expenses are for two projects. The primary project is the continued development of the Company's Cust2Mate product. Most of these expenses relate to outsourced software engineers that work on integrating future customers' point of sales systems to the Company's software. The second project relates to the Company's Automotive Products, the development of which is expected to be completed in 2023.

Research and development expenses were $3,222 thousand for the year ended December 31, 2021, as compared to $418 thousand for the year ended December 31, 2020. The increase is primarily due to an increase in subcontractor and outsourced work costs for the development of the Company's Cust2Mate smart cart.

Sales and marketing

Sales and marketing expenses were $102 thousand for the year ended December 31, 2021, as compared to $108 thousand for the year ended December 31, 2020.

General and administrative expenses

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2021** | **2020** |
| Payroll and related | $**1027** | $579 |
| Professional fees | **3417** | 1449 |
| Share-based compensation | **842** |  |
| Depreciation and amortization | **321** | 213 |
| Office maintenance | **275** | 23 |
| Investor relations | **254** | 101 |
| Other | **358** | - |
|  | $**6494** | $2365 |

---

General and administrative expenses were $6,494 thousand for the year ended December 31, 2021, as compared to $2,365 thousand for the year ended December 31, 2020. The increase is primarily due to the increase in professional fees which amounted to $3,417 thousand for the year ended December 31, 2021, compared to $1,449 thousand for the year ended December 31, 2020. The increase in professional fees is due to the listing of the common shares on Nasdaq. Other reasons for the increase in general and administrative expenses for the year ended December 31, 2021, as compared to the year ended December 31, 2020, is the increase in payroll and share-based expenses. The increase in payroll ($1,027 thousand in 2021 compared to $579 thousand in 2020) is mainly due to the growth of operating activities of the Company's smart cart segment.

Loss on revaluation of warrant liability

Loss on revaluation of warrant liability for the year ended December 31, 2021 was $30,895 thousand as compared to $3,228 for the year ended December 31, 2020. The loss relates to an increase in the value of the warrant liability as of December 31, 2021.

Financial expenses

Financial expenses, net for the year ended December 31, 2021, were $91 thousand as compared to $32 thousand for the year ended December 31, 2020. Financial expenses comprise interest on loans and leases, interest and accretion in respect of application of IFRS 16, and credit card charges.

***<u>Additional annual financial information</u>***

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| Total assets | $**12694** | $14131 | $8852 |
| Total non-current financial liabilities | **3568** | 852 | 9529 |
| Distributions or cash dividends declared per-share | **-** |  |  |

---

**REVIEW OF QUARTERLY RESULTS**

---

| | | | | |
|:---|:---|:---|:---|:---|
| (In Thousands) | **31/12/2022** | **30/09/2022** | **30/06/2022** | **31/03/2022** |
| Total revenues | $3825 | $2650 | $1430 | $1446 |
| Gross profit (loss) | $917 | $430 | $211 | $(276) |
| Total comprehensive loss | $(5600) | $(6009) | $(2955) | $(2919) |
| Basic and diluted loss per share | $(0.19) | $(0.21) | $(0.11) | $(0.09) |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **31/12/2021** | **30/09/2021** | **30/06/2021** | **31/03/2021** |
| Total revenues | $487 | $278 | $1404 | $516 |
| Gross profit | $(554) | $34 | $901 | $275 |
| Total comprehensive loss | $(3380) | $(1747) | $(4518) | $(29724) |
| Basic and diluted loss per share | $(0.14) | $(0.07) | $(0.18) | $(1.35) |

---

The loss per quarter and related net loss per share is a function of the level of activity that took place during the relevant quarter. Operating losses in the fourth quarter of 2022 and throughout four quarters in 2021 remained consistent. The reason for the losses is due to increased research and development expenses and general and administrative costs, largely due to the Company's expansion ahead of expected increased revenues in future periods.

**<u>Analysis of Fourth quarter results</u>**

Revenues for the fourth quarter of 2022 were $3,825 thousand as compared to $2,650 thousand for third quarter of 2022. The increase in revenues is mainly due to larger delivery of Smart Carts to Yochananof. Total sales in the Smart Cart segment amount to $2,273 thousand in the fourth quarter of 2022, as compared to $1,218 thousand in the third quarter of 2022. Gross profit for the fourth quarter of 2022 was $917 thousand as compared to $430 thousand for the third quarter of 2022. The increase is gross profit is mainly due to the increase in sales in the Smart Cart segment.

**LIQUIDITY AND CAPITAL RESOURCES**

Liquidity is a measure of a company's ability to meet potential cash requirements. The Company has historically met its capital requirements through the issuance of Common Shares and securing bank loans.

The Company had an accumulated deficit of $67,395 thousand as of December 31, 2022 ($50,838 thousand as of December 31, 2021), and the Company had negative cash flows from operations of $9,883 thousand for the year ended December 31, 2022 ($9,378 thousand for the year ended December 31, 2021).

***Working capital***

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Cash and cash equivalents | 2616 | 8470 |
| Restricted cash | 8 | 60 |
| Inventories | 375 | 1147 |
| Trade receivables | 1373 | 857 |
| Other accounts receivable | 2570 | 434 |
| Total current assets | 6942 | 10968 |
| Short term loan and current portion of long-term loans | 1403 | 158 |
| Lease liability | 281 | 126 |
| Trade payables | 2224 | 989 |
| Deferred revenues | 1373 |  |
| Other accounts payable | 956 | 1099 |
| Total current liabilities | 6237 | 2372 |
| Working capital | 705 | 8596 |

---

Cash flow

---

| | | |
|:---|:---|:---|
|  | **Year ended December 31,** | **Year ended December 31,** |
|  | **2022** | **2021** |
| Net cash used in operating activities | (9431) | (9378) |
| Net cash used in investing activities | (1559) | (280) |
| Net cash provided from financing activities | 5681 | 12355 |
| Increase (decrease) in cash | (6096) | 2697 |

---

*Year ended December 31, 2022, compared to the year ended December 31, 2021*

 

During the year ended December 31, 2022, the Company's overall position of cash decreased by $4,894 as compared to an increase of $2,697 thousand for the year ended December 31, 2021. This decrease can be attributed to the following activities:

Operating activities

The Company's net cash used in operating activities during the year ended December 31, 2022, was $9,431 thousand as compared to $9,378 thousand for the year ended December 31, 2021. The increase is due primarily to the increase in the research and development and general and administrative expenses for the period.

Investing activities

Cash used in investing activities for the year ended December 31, 2022, was $1,559 thousand as compared to $280 thousand used in investing activities during the year ended December 31, 2021. The increase is due primarily to the acquisition of Isramat, a newly purchased subsidiary.

Financing activities

Cash provided from financing activities for the year ended December 31, 2022, was $6,096 thousand, and was mainly due to the issuance of share and warrants in the amount of $3,894 thousand, and the exercise of warrants in the amount of $1,379 thousand and proceeds from receipt of loans in the amount of $1,294 thousand, offset by repayment of loans in the amount of $342 thousand. Cash provided from financing activities for the year ended December 31, 2021, was $12,355 thousand, and was mainly due an issuance of shares and warrants in a private placement which closed in June 2021 in the amount of $8,358 thousand, and the exercise of warrants in the amount of $3,386 thousand.

*Capital Resources*

The Company is an early-stage technology company focused on research and development of its products, and currently does not generate significant cash flows from some areas of its operations. However, following the acquisition of the Isramat during the first quarter of 2022, the Company expects to generate profits and cash flows from this segment (Isramat generated revenues during the years ended December 31, 2020, and 2021 of $5 million and $4.9 million, respectively, and profits of $500 thousand and $735 thousand, respectively).

As at December 31, 2022, the Company had an estimated positive working capital of $0.7 million including a cash balance of $2,616 thousand. As of the date of this report, the company believes that it has sufficient resources to operate in the foreseeable future with the support of its officers.

On March 13, 2023, the Company announced that it has closed, in escrow, the issuance of 1,783,561 units ("Units") at a price per Unit of US$1.46 (CAD$1.95), for gross proceeds of US$2,604. Each Unit consists of one common share and one half of one common share purchase warrant (each whole such warrant a "Warrant"). An aggregate of 891,778 Warrants will be issued upon final closing which when exercised in accordance with the terms of the warrant certificates, and upon payment of an exercise price of CAD$2.35 (US$1.75), will result in the issuance of an additional 891,778 common shares (March 2023 Private Placement Warrants"). A finder's fee of $208 (CAD$290,000) is to be paid in respect of the closing, and 142,685 March 2023 Private Placement Warrants were issued in connection with the March 2023 Private Placement with the same terms as the warrants issued to the investors.

*Short-term borrowings*

Short term borrowing relates to bank loans which will be repaid in over the following 12 months. The Company requires short-term borrowing from time to time to accommodate urgent requests from customers that require an initial outlay of cash by the Company.

*Long-term borrowings*

Long-term borrowing relates to bank loans which will be repaid after the following 12 months. Currently, the nature of cash requirements by the Company can fluctuate greatly from year to year as the Company is reliant on a relatively small pool of customers that have shifting needs. As contracts can vary greatly from year to year the Company is sometimes required to take on long term debt.

*No History of Dividends*

Since incorporation, the Company has not paid any cash or other dividends on its Common Shares and does not expect to pay such dividends in the foreseeable future.

**Management of Capital**

The Company's main use for liquidity is to fund the development of its programs and working capital purposes. These activities include staffing, preclinical studies, clinical trials and administrative costs. The primary source of liquidity has been from financing activities to date. The ability to fund operations, to make planned capital expenditures and execute the growth/acquisition strategy depends on the future operating performance and cash flows, which are subject to prevailing economic conditions, regulatory and financial, business and other factors, some of which are beyond the Company's control.

The Company intends to grow rapidly and expand its operations within the next 12 to 24 months. This growth, along with the expectation of operating at a loss for at minimum the next 12 months, will diminish the Company's working capital. As such, substantial additional financing may be required if the Company is to be successful in continuing to develop its business, meet ongoing obligations and discharge its liabilities in the normal course of business. No assurances can be given that the Company will be able to raise the additional capital that it may require for its anticipated future development. Any additional equity financing may be dilutive to investors and debt financing, if available, may involve restrictions on financing and operating activities. There is no assurance that additional financing will be available on terms acceptable to the Company, if at all. If the Company is unable to obtain additional financing as needed, it may be required to and has the ability to reduce the scope of its operations or anticipated expansion.

The Company defines its capital as share capital plus warrants. To effectively manage the Company's capital requirements, the Company has a planning and budgeting process in place to ensure that adequate funds are available to meet its strategic goals. The Company monitors actual expenses to budget to manage its costs and commitments. The Company manages liquidity risk by reviewing, on an ongoing basis, its sources of liquidity and capital requirements. In evaluating the Company's capital requirements and its ability to fund the execution of its business strategy, the Company believes that it has adequate available liquidity to enable it to meet its working capital and other operating requirements, and other capital expenditures and settle its liabilities for at least the next 12 months. The Company's objective is to maintain sufficient cash to fund the Company's operating requirements and expansion plans identified from time to time. While the Company expects to incur losses for at minimum the next 12 months, management of the Company continues to work towards the success and eventual profitability of the business.

The Company's capital management objective is to maximize investment returns to its equity-linked stakeholders within the context of relevant opportunities and risks associated with the Company's operations. Achieving this objective requires management to consider the underlying nature of research and development and sales and marketing activities, the availability of capital, the cost of various capital alternatives and other factors. Establishing and adjusting capital requirements is a continuous management process.

The Company's ability to access both public and private capital is dependent upon, among other things, general market conditions and the capital markets generally, market perceptions about the Company and its business operations, and the trading prices of the Company's securities from time to time. When additional capital is required, the Company intends to raise funds through the issuance of equity or debt securities. Other possible sources include the exercise of stock options of the Company. There can be no assurance that additional funds can be raised upon terms acceptable to the Company, or at all, as funding for early-stage companies remain challenging generally. Given the nature of the Company's business as of the date of this MD&A, and in particular, the fact that its operations are undertaken exclusively within a foreign jurisdiction, the Company may face difficulty in accessing traditional sources of financing, notwithstanding that its business operations are conducted in a regulatory environment within which the Company's activities are neither illegal nor subject to conflicting laws.

**OFF BALANCE SHEET ARRANGEMENTS**

There are no off-balance sheet arrangements to which the Company is committed.

**TRANSACTIONS WITH RELATED PARTIES**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making operating and financial decisions. This would include the Company's senior Management, who are considered to be key management personnel by the Company.

Parties are also related if they are subject to common control or significant influence. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

**The following transactions arose with related parties:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | |
|  | **Directors Fees** | **Consulting Fees / Salaries** | **Share based awards** | **Total** |<br>**Amounts**<br> **owing by**<br> **(to) as of**<br> **December 31, 2022** |
| Director and CEO | $- | $- | $- | $- | $462 |
| Company controlled by CEO |  | 1224 |  | 1224 | (474) |
| CFO |  | 84 | 160 | 244 |  |
| Directors | 28 | - | 64 | 92 | - |
|  | $28 | $1308 | $224 | $1560 | $(12) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | |
|  | **Directors Fees** | **Consulting Fees / Salaries** | **Share based awards** | **Total** |<br>**Amounts**<br> **owing by**<br> **(to) as of**<br> **December 31, 2021** |
| Director and CEO | $- | $43 | $- | $43 | $183 |
| Company controlled by CEO |  | 958 |  | 958 | (57) |
| CFO |  | 94 | 59 | 153 |  |
| Directors | 31 | - | 11 | 42 | - |
|  | $31 | $1095 | $70 | $1196 | $126 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2020** | **Year ended December 31, 2020** | **Year ended December 31, 2020** | **Year ended December 31, 2020** | |
|  | **Directors Fees** | **Consulting Fees / Salaries** | **Share based awards** | **Total** |<br>**Amounts**<br> **owing by**<br> **(to) as of**<br> **December 31, 2021** |
| Director and CEO | $- | $31 | $- | $31 | $- |
| Company controlled by CEO |  | 594 |  | 594 | &nbsp;&nbsp;&nbsp;&nbsp; - |
| CFO |  | 30 | 27 | 57 |  |
| Directors | 31 | - | 10 | 41 | - |
|  | $31 | $655 | $37 | $723 | $- |

---

**Financial Instruments and Financial Risk Exposure**

The Company is exposed to a variety of financial risks, which results from its financing, operating and investing activities. The objective of financial risk management is to contain, where appropriate, exposures in these financial risks to limit any negative impact on the Company's financial performance and position.

The Company's financial instruments are its cash, trade and other receivables, payables, other payables and loans. The main purpose of these financial instruments is to raise finance for the Company's operation. The Company actively measures, monitors and manages its financial risk exposures by various functions pursuant to the segregation of duties and principals. The risks arising from the Company's financial instruments are mainly credit risk and currency risk. The risk rate on loans is fixed. The risk management policies employed by the Company to manage these risks are discussed below.

<u>Market risks</u>:

That part of the Company's' business of providing maintenance services of various electronic systems is highly competitive and involves a certain degree of risk. The Company's business operations will depend largely upon the outcome of continued sales and services to security establishments and the commercialization of its products and services currently in development.

The Company's Cust2Mate smart cart platform is new and the Company is aware of competitors in the market. In addition to the regular management oversight and skills required, success in this segment will require the Company to penetrate the market as rapidly as possible.

**Critical Accounting Policies and Estimates**

The areas requiring the use of estimates and critical judgments that may potentially have a significant impact on the Company's earnings and financial position are the useful life of property and equipment and income tax.

**The useful life of property, plant and equipment**

Property and equipment are amortized or depreciated over their useful lives. Useful lives are based on management's estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. Changes to estimates can result in significant variations in the amounts charged to the consolidated statement of comprehensive income in specific periods.

**Intangible assets**

Intangible assets are tested for impairment annually or more frequently if there is an indication of impairment. The carrying value of intangibles with definite lives is reviewed each reporting period to determine whether there is any indication of impairment. If there are indications of impairment the impairment analysis is completed and if the carrying amount of an asset exceeds its recoverable amount, the asset is impaired and impairment loss is recognized.

**Impairment of non-financial assets**

Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e., the higher of value in use and fair value less costs to sell), the asset is written down accordingly.

Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs'). Goodwill is allocated on initial recognition to each of the Company's CGUs that are expected to benefit from a business combination that gives rise to the goodwill.

Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognized in other comprehensive income. An impairment loss recognized for goodwill is not reversed.

**Goodwill**

Goodwill arising on the acquisition of a subsidiary represents the excess of the cost of acquisition over the Company's interest in the net fair value of the identifiable assets, liabilities and Contingent liabilities of the subsidiary or jointly controlled entity recognized at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.

**Derivative liability - Warrants**

The Company uses the Black-Scholes option-pricing model to estimate fair value at each reporting date. The key assumptions used in the model are the expected future volatility in the price of the Company's shares and the expected life of the warrants.

**Determining the fair value of share-based payment transactions:**

The fair value of share-based payment transactions is determined upon initial recognition by the Binomial model. The Binomial model is based on share price and exercise price and assumptions regarding expected volatility, term of share option, dividend yield and risk-free interest rate.

**CURRENT SHARE DATA**

A2Z is authorized to issue an unlimited number of Common Shares. As of the date of this MD&A there were 32,728,883 Common Shares issued and outstanding. In addition, the following warrants and options were outstanding:

---

| | | | |
|:---|:---|:---|:---|
| **Outstanding as of**<br> **the date of this report**  | | **Date of expiry** | **Exercise price USD** |
| 2658313 | Warrants | November 10, 2025 | $2.03 |
| 1366631 | Warrants | December 24, 2025 | $2.03 |
| 221100 | Warrants | April 18, 2023 | $8.29 |
| 1084562 | Warrants | May 28, 2023 | $8.29 |
| 1726366 | Warrants | November 8, 2024 | $1.60 |
| 1020764 | Warrants | March 13, 2025 | $1.75 |
| 543333 | Options | August 20, 2025 | $1.11 |
| 40000 | Options | September 1, 2025 | $1.66 |
| 33333 | Options | January 28, 2025 | $2.21 |
| 50000 | Options | June 3, 2026 | $6.20 |
| 16677 | Options | October 28, 2026 | $5.90 |
| 900000 | Options | August 2, 2032 | $2.63 |
| 300000 | Options | August 21, 2032 | $2.95 |
| 816500 | Options | January 6, 2033 | $1.22 |
| 100000 | Options | November 25, 2027 | $1.50 |
| **10877579** |  |  |  |

---

**<u>Research and Development, Patents and Licenses etc.</u>**

Our success and ability to compete depend substantially upon our core technology and intellectual property rights. We generally rely on patent, trademark and copyright laws, trade secret protection and confidentiality agreements to protect our intellectual property rights. In addition, we generally require employees and consultants to execute appropriate nondisclosure and proprietary rights agreements. These agreements acknowledge our exclusive ownership of intellectual property developed for us and require that all proprietary information remain confidential.

As of December 31, 2022, we had seven of our patent applications were protected through pending applications. We file patent applications in the United States and, when appropriate, certain other countries for inventions that we consider significant.

In addition to patents, we also possess other intellectual property, including trademarks, know-how, trade secrets, design rights and copyrights. We control access to and use of our software, technology and other proprietary information through internal and external controls, including contractual protections with employees, contractors, customers and partners. Our software is protected by U.S. and international copyright, patent and trade secret laws. Despite our efforts to protect our software, technology and other proprietary information, unauthorized parties may still copy or otherwise obtain and use our software, technology and other proprietary information. In addition, we have expanded our international operations, and effective patent, copyright, trademark and trade secret protection may not be available or may be limited in foreign countries.

Companies in the industry in which we operate frequently are sued or receive informal claims of patent infringement or infringement of other intellectual property rights. We may receive such claims from companies, including from competitors and customers, some of which have substantially more resources and have been developing relevant technology similar to ours. As and if we become more successful, we believe that competitors will be more likely to try to develop products that are similar to ours and that may infringe on our proprietary rights. It may also be more likely that competitors or other third parties will claim that our products infringe their proprietary rights. Successful claims of infringement by a third party, if any, could result in significant penalties or injunctions that could prevent us from selling some of our products in certain markets, result in settlements or judgments that require payment of significant royalties or damages or require us to expend time and money to develop non-infringing products. We cannot assure you that we do not currently infringe, or that we will not in the future infringe, upon any third-party patents or other proprietary rights, but will not and have never done so intentionally.

**ITEM 6. DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES**

**A. Directors and Senior Management**

The following sets forth certain information relating to our directors and executive officers. The business address for our directors and officers is c/o 1600 - 609 Granville Street Vancouver, British Columbia, Canada V7Y 1C3. Each director's term will expire at the next annual meeting of shareholders.

 

**Bentsur Joseph, 62,** has been the President, Chief Executive Officer and Director of the Company since December 18, 2019 and the President and Chief Executive Officer of A2ZMS since 1998. Prior to joining A2Z, between 1999 and 2001, Mr. Joseph served as the Chairman of Elad Hotels – Part of the Isaac Tshuva group of companies. Prior thereto, between 2001 and 2003, Mr. Joseph served as the CEO of DIG Ltd., a public company which produces and sells electric components through the biggest shops and chain stores all over Israel. Prior thereto, Mr. Joseph served as a director of MARLAZ, a large well recognized public holding company which owns various publicly traded companies in the industrial, real estate, communication, and hi-tech industries. Mr. Joseph holds an Electronic field-engineer degree from Israeli Air-Force unit and Project Management Diploma from Tel-Aviv University.

**Gadi Levin, 50,** was initially appointed Chief Financial Officer on April 2, 2020 and resigned on October 27, 2021. He was re-appointed on March 15, 2022. Mr. Levin provides outsourced CFO services where he also serves as Chief Financial Officer and Secretary of Briacell Therapeutics Corp since February 2016, Chief Financial Officer and Director of Vaxil Bio Ltd since March 1, 2016, and Finance Director of Eco (Atlantic) Oil & Gas Ltd. since December 1, 2016. Mr. Levin has over 15 years of experience working with public US, Canadian and multi-jurisdictional public companies. Previously, Mr. Levin served as Chief Financial Officer of DarioHeath Corp from November 2013 through January 2015. Mr. Levin also served as the Vice President of Finance and Chief Financial Officer for two Israeli investment firms specializing in private equity, hedge funds and real estate. Mr. Levin began his CPA career at the accounting firm Arthur Andersen, where he worked for nine years, specializing in U.S. listed companies involved in IPOs. Mr. Levin has a Bachelor of Commerce degree in Accounting and Information Systems from the University of the Cape Town, South Africa, and a post graduate diploma in Accounting from the University of South Africa. He received his Chartered Accountant designation in South Africa and has an MBA from Bar Ilan University in Israel.

**Amnon Peleg, 62,** has served as the Chief Technology Officer since January 2010. Prior to joining A2Z, between 1983 and 2006, Mr. Peleg served as a Technological Project Manager for the Office of the Prime Minister of Israel. Mr. Peleg holds an Electronic field-engineer degree from the Israel Air Force, 1983 and a Project Management Diploma from Tel-Aviv University, 2002.

**Alan Rootenberg, 71,** has served on the board of directors since May 2020. Mr. Rootenberg is a chartered professional accountant who has served as the Chief Financial Officer of a number of publicly traded companies listed on the TSX, TSXV, OTCBB and CSE. These companies include mineral exploration, mining, technology and companies in the cannabis industry. These companies are: BioHarvest Sciences Inc. (since November 2018); Eco (Atlantic) Oil & Gas Ltd. (since November 2011); Osino Resources Corp. (since June 2018); Empower Clinics Inc. (from August 2013 to May 2018) Solvbl Solutions Inc. since February 2021. Mr. Rootenberg has a Bachelor of Commerce degree from the University of the Witwatersrand in Johannesburg, South Africa and received his professional designation in both South Africa and Ontario, Canada.

**Yonatan de Jongh, 41,** has served on the board of directors since February 2021. Yonatan de Jongh presently serves as Senior Manager of Revenues and Billing at DraftKings Inc. Mr. de Jongh holds a Bachelor and Master degree in Business Administration and Accounting from College of Management (Rishon Lezion, Israel) from 2015.

**Gadi Graus, 57,** has served on the board of directors since January 6, 2023. Prior to joining the Company, Gadi Graus was a senior partner at Shibolet & Co., Law Offices, one of Israel's largest law firms. Mr. Graus currently serves as President of the Company and as a director of Cust2Mate Ltd, one of the Company's subsidiaries. Mr. Graus has an LLB from Hebrew University, Jerusalem, Israel and an MBA from the Kellogg - Recanati program (Tel-Aviv University and Northwestern University).

**Niv Raz Haim, 55,** has served on the board of directors since January 6, 2023. Mr. Raz Haim is a leading entrepreneur and businessman in the Israeli hospitality and dining industries and operates businesses that host events that cater to over 10,000 patrons per month and employ over 150 people. Mr. Raz Haim holds a bachelor's degree and is a member of the international gastronomic society - Confrérie de la Chaîne des Rôtisseurs.

The participation of the directors and officers of the Company in publicly traded issuers at the date of this Annual Report is described in the following table:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name** | **Name of Reporting Issuer** | **Name of Exchange or Market** | **Position** | **From** | **To** |
| Gadi Levin | Briacell Therapeutics Corp. | NASDAQ / TSXV | CFO | July 2016 | Present |
| Gadi Levin | Eco (Atlantic) Oil & Gas Ltd | AIM / TSXV | Finance Director | December 2016 | Present |
| Gadi Levin | Vaxil Bio Ltd | TSXV / OTC | Director & CFO | July 2016 | Present |
| Gadi Levin | A2Z Smart Technologies Corp. | NASDAQ/TSXV | CFO | April 2020 | October 2021;<br> reappointed<br> March 2022 |
| Alan Rootenberg | Solvbl Solutions Inc. | CSE | CFO | February 2021 | Present |
| Alan Rootenberg | A2Z Smart Technologies Corp. | TSXV | Director | May 2020 | Present |
| Alan Rootenberg | BioHarvest Sciences Inc. | CSE | CFO | November 2018 | Present |
| Alan Rootenberg | Clearmind Medicine Inc. | CSE | Director and CFO | December 2019 | Present |
| Alan Rootenberg | Eco (Atlantic) Oil & Gas Ltd | TSXV | CFO | November 2011 | Present |
| Niv Raz Haim | N/A |  |  |  |  |

---

**B. Compensation**

The following table is a summary of compensation paid to the Named Executive Officers for the financial year ended December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | **Non-equity incentive plan compensation ($) (USD)** | **Non-equity incentive plan compensation ($) (USD)** | | | |
| <br>**Name and principal position** |<br>**Salary ($)**<br>**(USD)** |<br>**Share-based awards ($) (1)**<br>**(USD)** |<br>**Option- based awards ($)**<br>**(USD)** | **Annual incentive plans** | **Long-term incentive plans** |<br>**Pension value ($)**<br>**(USD)** |<br>**All other compensation ($)**<br>**(USD)** |<br>**Total compensation ($)**<br>**(USD)** |
| Bentsur Yosef | $23000 | Nil<br>| Nil<br>| Nil<br>| Nil<br>| Nil<br>| $1224000 | $1247000 |
| Gadi Levin | Nil<br>| $162500 | Nil<br>| Nil<br>| Nil<br>| Nil<br>| $84000 | $246500 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) Fair
 value of restricted share units granted during the year, based on the closing price of the
 Company's shares at day of grant.

**Services Agreement with Mida Consulting and Investments Ltd.**

On January 1, 2020, the Company and Mida Consulting and Investments Ltd. ("Mida") entered into a services agreement wherein the Company wished to retain the services of Bentsur Joseph through Mida. Bentsur Joseph holds a controlling interest of Mida. In the Services Agreement, Mr. Joseph has agreed to act as the Company's CEO. Mr. Joseph will be compensated a sum of NIS 150,000, plus VAT, per month. Mr. Joseph is entitled to receive reimbursement for all direct and indirect expenses incurred in connection with his automobile. The services agreement has an unlimited term. Both parties are entitled to terminate the Services Agreement for any reason, or no reason, by giving the other party prior written notice of 90 days.

On February 1, 2022, the Company subsidiary, Isramat Ltd ("Isramat"), and Mida entered into a services agreement wherein Isramat wished to retain the services of Bentsur Joseph through Isramat. Bentsur Joseph holds a controlling interest of Mida. In the services agreement, Mr. Joseph has agreed to provide consulting services to the Company. Mr. Joseph will be compensated a sum of NIS 100,000, plus VAT, per month. Mr. Joseph is entitled to receive reimbursement for all direct and indirect expenses incurred in connection with his automobile. The services agreement has an unlimited term. Following 24 months from the date of entry into the agreement, both parties are entitled to terminate the Services Agreement for any reason, or no reason, by giving the other party prior written notice of 30 days.

**Agreement with Gadi Levin**

On March 15, 2022, the Company and Ninety Six Capital Ltd ("96Cap") entered into a services agreement wherein the Company wished to retain the services of Mr. Levin through 96Cap. Mr. Levin holds a controlling interest of 96Cap. In the services agreement, Mr. Levin has agreed to act as the Company's CFO. Mr. Levin will be compensated a sum of US$7,000, per month. Both parties are entitled to terminate the Services Agreement for any reason, or no reason, by giving the other party prior written notice of 90 days.

**<u>Agreements with Gadi Graus</u>**

On August 4, 2022, the Company issued Mr. Gadi Graus with: (i) 400,000 RSUs, of which 100,000 vest immediately and 100,000 vest in three equal annual installments with the first installment vesting on August 2, 2023; (ii) 900,000 Options to purchase common shares of the Company with exercise price of CDN$3.56, of which 225,000 vest immediately and the remainder in 6 equal installments every six months, with the first installment on February 2, 2023. The options can be exercised until August 2, 2032. RSUs and Options were issued in accordance with the Company's stock option plan under the 102 Equity Grant route.

On November 1, 2022, the Company's subsidiary Cust2mate Ltd. and Gadi Graus entered into an employment agreement, under which Gadi Graus will serve as President of the Company and of Cust2mate. Mr. Graus will receive a gross monthly salary of NIS45,000, payments for his use of a car, plus customary social and ancillary payments. Bonuses to be paid at the discretion of the board of directors of the Company. The employment agreement has an unlimited term. Both parties are entitled to terminate the Employment Agreement for any reason, or no reason, by giving the other party prior written notice of 3 months. If Cust2mate notifies that it is terminating the employment (except for cause) before the lapse of 24 months, Mr. Graus will be entitled to paid gardening leave of 9 months; If Cust2mate notifies that it is terminating the employment after the lapse of 24 months, but before the lapse of 36 months Mr. Graus will be entitled to paid gardening leave of 6 months; If Cust2mate notifies that it is terminating the employment after the lapse of 36 months Mr. Graus will be entitled to paid gardening leave of 3 months.

On November 1, 2020, the Company subsidiary A2Z MS Military Solutions Ltd. ("**A**2**ZMS**"), and Elmag ("Elmag") entered into a services agreement wherein A**2**ZMS wished to retain the services of Gadi Graus through Elmag. Gadi Graus holds a controlling interest of Elmag. In the Services Agreement, Mr. Graus has agreed to provide management services. Mr. Graus will be compensated with a sum of NIS 55,000, plus VAT, per month. The services agreement has an unlimited term. Both parties are entitled to terminate the services agreement for any reason, or no reason, by giving the other party prior written notice of 3 months. If A**2**ZMS notifies that it is terminating the services agreement (except for cause) before the lapse of 24 months, Mr. Graus will be entitled to paid gardening leave of 9 months; If A**2**ZMS notifies that it is terminating the services agreement after the lapse of 24 months, but before the lapse of 36 months Mr. Graus will be entitled to paid gardening leave of 6 months; If A**2**ZMS notifies that it is terminating the services agreement after the lapse of 36 months Mr. Graus will be entitled to paid gardening leave of 3 months.

On January 4, 2023, the Company issued Mr. Gadi Graus with 250,000 RSUs, which will vest after the lapse of 12 months. The RSUs were issued in accordance with the Company's stock option plan under the 102 Equity Grant route.

**Incentive Plan Awards**

***Outstanding share-based awards and option-based awards***

 ****

The following table is a summary of option awards granted to the Named Executive Officers that were outstanding as at December 31, 2022.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** | **Option-based Awards** |
| <br>**Name** | **Number of securities underlying unexercised options (#)** | **Option exercise price ($)**<br>**(CAD)** | **Option expiration date** | **Value of unexercised in-the-money options ($)**<br>**(CAD)** |
| Bentsur Yosef |  |  |  |  |
| Gadi Levin |  |  |  |  |

---

***Value Vested or Earned During the Year ended December 31, 2022***

 ****

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Option – based awards – Value vested during the year**<br>**($)(USD)** | **Share-based awards – Value vested during the year**<br>**($)** | **Non-equity incentive plan compensation – Value earned during the year**<br>**($)** |
| Bentsur Yosef |  |  |  |
| Gadi Levin | $24000 | $27000 |  |

---

**Pension Plan Benefits**

No benefits were paid, and no benefits are proposed to be paid to any of the Named Executive Officers under any pension or retirement plan, other than what has been specified above.

**Directors Compensation**

***Director Compensation Table***

 ****

The following table is a summary of compensation paid to the directors of the Company, other than: (i) directors who are also Named Executive Officers; and (ii) directors who were appointed during the fiscal year 2022 who did not receive any compensation from the Company in any other role during fiscal 2021, for the year ended December 31, 2022:

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and principal position** | **Year** | **Fees earned<br> ($)**<br>**(USD)** | **Share-based awards<br> ($)**<br>**(USD)** | **Option- based awards<br> ($)**<br>**(USD)** | **Non-equity incentive plan compensation<br> ($)**<br>**(USD)** | **Pension value<br> ($)**<br>**(USD)** | **All other compensation<br> ($)**<br>**(USD)** | **Total compensation<br> ($)**<br>**(USD)** |
| Alan Rootenberg | 2022 | <br>Nil<br>| 65000 | <br>Nil<br>| <br>Nil<br>| <br>Nil<br>| <br>Nil<br>| 65000 |
| Yonatan de Jongh | 2022 | 10000 | 32500 | <br>Nil<br>| <br>Nil<br>| <br>Nil<br>| <br>Nil<br>| 32500 |
| Shlomo Paksher | 2022 | 8000 | 32500 | <br>Nil<br>| <br>Nil<br>| <br>Nil<br>| <br>Nil<br>| 32500 |

---

 **

***Incentive Plan Awards – Value Vested or Earned During the Year***

 **

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **Option – based awards – Value vested during the year**<br>**($)**<br>**(USD)** | **Share-based awards – Value vested during the year**<br>**($)** | **Non-equity incentive plan compensation – Value earned during the year**<br>**($)** |
| Alan Rootenberg | 1306 | 40625 | NIL |
| Yonatan de Jongh | 44130 | 8125 | NIL |
| Shlomo Paksher | NIL | 8125 | NIL |

---

**C. Board Practices**

**Committees of the Board of Directors**

The Board of Directors discharges its responsibilities directly, as well as indirectly through the Audit Committee, the Compensation Committee and the Nominating Committee. Each director's term expires at the next annual meeting of shareholders or until their respective successors are elected or appointed.

Audit Committee

The mandate of the Audit Committee is formalized in a written charter. The members of the Audit Committee are Messrs. Alan Rootenberg (Chairperson), Niv Raz Haim and Yonatan de Jongh. The Audit Committee members have been determined by the Board to be "independent" (as such term is defined in NI 52-101) and "financially literate" (as such term is defined in NI 52-110), having the ability to understand and critically evaluate the financial statements of the Company. The Board made this determination based on the experience of each Audit Committee member. The Audit Committee's primary objective is to assist the Board in fulfilling its oversight responsibilities to: (i) review financial reports and financial information provided to any regulatory authority or provided for release to the public and the Company's shareholders; (ii) review the Company's disclosure control systems; (iii) review the Company's internal control systems with respect to finance, accounting and legal compliance; and (iv) review the Company's accounting and financial reporting processes.

The Audit Committee has not adopted formal policies and procedures for the engagement of non-audit services. Subject to the requirements of the NI 52-110, the engagement of non-audit services is considered by, as applicable, the Board and the Committee, on a case-by-case basis.

*Compensation Committee*

The members of the Compensation Committee are Messrs. Rootenberg, Niv Raz Haimand, and de Jongh (Chairperson). The purpose of the Compensation Committee is to assist the Board in fulfilling its oversight responsibilities with respect to compensation of members of the Board and the executive officers of the Company.

Nominating Committee

The members of the Nominating Committee are Messrs. Rootenberg (Chairperson), Niv Raz Haimand, and de Jongh. The purpose of the Nominating Committee is to assist the Board in fulfilling its oversight responsibilities with respect to nomination of members of the Board.

**D. Employees**

The Company had 119 employees, all located in Israel, as of the date of this annual report. The Company's Cust2Mate division has 38 employees (directly or through a dedicated subcontractor) and the Company's recently acquired subsidiary, Isramat, has 44 employees.

**E. Share Ownership**

See Item 6.B. - "Compensation" and Item 7 - "Major Shareholders and Related Party Transactions."

**Stock Option Plan**

The purpose of the Company's stock option plan (the "Stock Option Plan") is to attract, retain and motivate directors, officers, employees and consultants (the "Option Plan Eligible Persons") by providing them with the opportunity, through stock options, to acquire a proprietary interest in the Company and benefit from its growth. The maximum number of common shares which may be issued under options granted under this Stock Option Plan, from time to time, shall be equal to ten percent (10%) of the outstanding shares of the Company less the aggregate number of shares reserved for issuance or issuable under any other Security Based Compensation Plan (as defined therein) of the Company. Pursuant to the Stock Option Plan, the maximum number of common shares reserved for issuance in any 12-month period to any one optionee other than a consultant may not exceed 5% of the issued and outstanding common shares at the date of the grant. The maximum number of common shares reserved for issuance in any 12-month period to any consultant may not exceed 2% of the issued and outstanding common shares at the date of the grant and the maximum number of common shares reserved for issuance in any 12-month period to all persons engaged in investor relations activities may not exceed 2% of the issued and outstanding number of common shares at the date of the grant.

Subject to the discretion of the Board, if any Option Plan Eligible Person ceases to be an Option Plan Eligible Persons for any reason, other than for cause or death, the options held by such person will terminate on the earlier of (i) the expiry date of the option; and (ii) ninety (90) days from the date such person ceases to be an Option Plan Eligible Person. The Option Plan Eligible Person may exercise any option issued under the Stock Option Plan that is then exercisable at any time within that period unless an existing agreement between the Option Plan Eligible Person and the Company provides for a different period.

In the event that an Option Plan Eligible Person ceases to be an Option Plan Eligible Person because of termination for cause, the options of the Option Plan Eligible Person not exercised at such time shall immediately be cancelled on the date of such termination. In the event of the death of a Participant during the term of the Option Plan Eligible Person's option, the option theretofore granted to the Option Plan Eligible Person shall be exercisable by the Option Plan Eligible Person's heirs or administrators within the period of one (1) year succeeding the Option Plan Eligible Person's death.

A copy of the Company's Stock Option Plan is incorporated by reference into this Form 20-F.

**RSU Plan**

On April 22, 2021, the Company's shareholders adopted a Restricted Share Unit Plan ("RSU Plan"). The purpose of the RSU Plan is to advance the interests of the Company by: (i) providing eligible persons with incentives; (ii) rewarding performance by participants; (iii) increasing the proprietary interest of participants in the success of the Company; (iv) encouraging participants to remain with the Company or its affiliates; (v) attracting new directors, employees, officers and consultants; and; (vi) aligning the interests of the participants with those of the shareholders of the Company. The RSU Plan is administered by the Board and the administration can be delegated to a committee and/or to any member thereof. The Company is responsible for all costs related to the administration of the RSU Plan. All defined terms herein have the meaning of the term as defined in the RSU Plan.

The RSU Plan entitles a director, officer, employee or consultant of the Company or any of its affiliates and any such person's personal holding company ("Eligible Person"), as designated by the Board in a resolution, to receive a Restricted Share Unit ("Restricted Share Units" or "RSUs"), granted or credited to a Participant's notional account pursuant to the terms of the RSU Plan. The maximum aggregate number of common shares issuable under the RSU Plan is 3,094,53 common shares. Participants of the RSU Plan who are residents of Israel are subject to the sub plan.

The RSUs are subject to several limitations discussed below:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the aggregate number of RSUs and the options issued under Company's stock option plan) (together: "Security Based Compensation Plans") granted to any one Eligible Person (and companies wholly owned by that Eligible Person) in a 12-month period must not exceed 5% of the shares, calculated on the date an RSU is granted to the Eligible Person, unless the Company has obtained the requisite approval of a majority of shareholders of the Company voting at a duly called and held meeting of the shareholders, excluding votes of Insiders to whom RSUs may be granted under the Plan ("Disinterested Shareholder Approval");

&nbsp;&nbsp;&nbsp;&nbsp;(b) the aggregate number of RSUs and all other Security Based Compensation Plans granted to Insiders, as a group, (and companies wholly owned by Insiders) at any time must not exceed 10% of the shares, unless the Company has obtained the requisite Disinterested Shareholder Approval;

&nbsp;&nbsp;&nbsp;&nbsp;(c) the aggregate number of RSUs and all other Security Based Compensation Plans granted to Insiders, as a group, (and companies wholly owned by Insiders) in a 12-month period must not exceed 10% of the shares, calculated on the date an RSU or other Security Based Compensation is granted to Insiders, unless the Company has obtained the requisite Disinterested Shareholder Approval;

&nbsp;&nbsp;&nbsp;&nbsp;(d) the aggregate number of RSUs and all other Security Based Compensation Plans granted to any one Consultant in a 12-month period must not exceed 2% of the shares of the Company, calculated at the date an RSU is granted to the Consultant; and

&nbsp;&nbsp;&nbsp;&nbsp;(e) persons involved in Investor Relations Activities are not eligible to receive Restricted Share Units.

All RSUs shall vest on the earlier of (i) the date of which the criteria established by the Board in respect of each RSU grant, if any, which, without limitation, may include criteria based on the financial performance of the Company and/or any Affiliate ("Performance Criteria") is achieved, if applicable, or (ii) the third (3<sup>rd</sup>) anniversary of the Date of Grant provided the Participant is continuously employed by or in service with the Company, or any of its Affiliates, from the Date of Grant until such Vesting Date. RSUs may be granted as dividend equivalents and these shall vest simultaneously with the RSUs to which they relate.

As of December 31, 2022, there were 720,000 RSUs outstanding to purchase common shares.

A copy of the Company's RSU Plan is incorporated by reference into this Form 20-F.

**ITEM 7. MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS**

**A. Major Shareholders.**

**Security Ownership**

The following table sets forth information relating to the beneficial ownership of our shares as of March 27, 2023 by:

● each person or group who is known by us to own beneficially
more than 5% of our common shares;

● each of our directors; and

● each of our named executive officers.

Beneficial ownership is determined in accordance with SEC rules. The information is not necessarily indicative of beneficial ownership for any other purpose. In general, under these rules a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has or shares voting power or investment power with respect to such security. A person is also deemed to be a beneficial owner of a security if that person has the right to acquire beneficial ownership of such security within 60 days. Except as otherwise indicated, and subject to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all shares held by that person.

The Company's major shareholders do not have different voting rights.

The percentage of voting shares beneficially owned is computed on the basis of 30,945,322 shares outstanding as of the date of this Annual Report.

---

| | | |
|:---|:---|:---|
| | **Common Shares** | **Common Shares** |
| <br>**Name and address of beneficial owner** | **Number<br> of<br> shares** | **Percentage<br> of<br> shares** |
| **5% shareholders:** |  |  |
| Bentsur Joseph | 9674478 | 29.56% |
| Matag Investments Ltd. | 2197290 | 6.71% |
| **Named executive officers and directors:** |  |  |
| Bentsur Joseph | 9674478 | 29.56% |
| Gadi Levin |  |  |
| Amnon Peleg | 562 | \* |
| Alan Rootenberg |  |  |
| Niv Raz Haim |  |  |
| Yonatan de Jongh |  |  |
| Gadi Graus |  |  |

---

\* Less than 1%

**Significant Changes in Ownership**

We are not aware of significant changes in ownership of our shares by these shareholders during the past three fiscal years.

**Record Holders**

Based upon a review of the information provided to us by our transfer agent, as of March 9, 2023, there were a total of 48 holders of record of our shares, of which 6 are located in Canada and 24 are located in the United States.

&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Related Party Transactions** 

To the knowledge of the Company, other than as immediately described below, no director or executive officer of the Company or any of the Company's subsidiaries, and no person or company who beneficially owns, directly or indirectly, or otherwise exercises control over more than 10% of the voting rights of the Company, or any proposed director, and no associate or affiliate of the foregoing persons, has had any material interest, direct or indirect, in any transaction within the Company's three most recently completed financial years or any proposed transaction which has materially affected or would materially affect the Company or any of its subsidiaries within the three most recently completed financial years.

On December 30, 2019, A2ZAS entered into a call option agreement (the "Call Option Agreement") with the Company's Chief Executive Officer, Bentsur Joseph, pursuant to which Mr. Joseph granted A2ZAS a 10 year option (the "Call Option") to purchase 66,000 ordinary shares of Cust2Mate, constituting 19% of Cust2Mate's issued and outstanding share capital (on a fully diluted basis) for an aggregate purchase price of $66,000. On November 5, 2020, A2ZAS and Mr. Joseph entered into a share purchase agreement pursuant to which A2ZAS exercised the Call Option and acquired an additional 190,549 ordinary shares of Cust2Mate, together constituting 77.51% of the issued and outstanding shares of Cust2Mate (on a fully diluted basis) for an aggregate purchase price of approximately $1.56 million. The acquisition of Cust2Mate was completed on November 16, 2020 and as a result, Mr. Joseph no longer owns any securities of Cust2Mate.

The Company's Chief Executive Officer, Bentsur Joseph, participated in the private placement closed on November 28, 2022 in the aggregate amount of $750,000 on the same terms and conditions as all other participants.

**The following transactions arose with related parties:**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | |
|  | **Directors Fees** | **Consulting Fees / Salaries** | **Share based awards** | **Total** |<br>**Amounts**<br> **owing by**<br> **(to) as of**<br> **December 31, 2022** |
| Director and CEO | $- | $- | $- | $- | $462 |
| Company controlled by CEO |  | 1224 |  | 1224 | (474) |
| CFO |  | 84 | 160 | 244 |  |
| Directors | 28 | - | 64 | 92 | - |
|  | $28 | $1308 | $224 | $1560 | $(12) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | |
|  | **Directors Fees** | **Consulting Fees / Salaries** | **Share based awards** | **Total** |<br>**Amounts**<br> **owing by**<br> **(to) as of**<br> **December 31, 2021** |
| Director and CEO | $- | $43 | $- | $43 | $183 |
| Company controlled by CEO |  | 958 |  | 958 | (57) |
| CFO |  | 94 | 59 | 153 |  |
| Directors | 31 | - | 11 | 42 | - |
|  | $31 | $1095 | $70 | $1196 | $126 |

---

**C. Interests of Experts and Counsel**

Not applicable.

**ITEM 8. FINANCIAL INFORMATION**

**A. Consolidated Financial Statements and Other Financial Information**

See Item 18. — "Financial Statements."

**A.7 Legal Proceedings**

As of the date of this Annual Report, the Company is not aware of any existing or contemplated legal proceedings material to the Company, to which the Company is, or was, a party or of which any of its property is, as of the date of this Annual Report was subject.

**A.8 Dividend Policy**

The Company has never declared or paid cash dividends on its common shares. Any future dividend payment will be made at the discretion of the Board, and will depend upon, among other factors, earnings, capital requirements, the Company's financial needs to fund its operations and its future growth, and any other factor that the Board deems necessary to consider in the circumstances.

**B. Significant Changes**

See "Note 26 - Subsequent Events" to our consolidated financial statements included in this Annual Report beginning on page F-1 for a discussion of significant events that have occurred since December 31, 2022.

**ITEM 9. THE OFFER AND LISTING**

Not applicable except for Item 9.A.4 and Item 9.C.

Our common shares trade on the TSXV and the Nasdaq Capital Market under the symbol "AZ". The common shares are also listed on the Frankfurt Stock Exchange (the "FSE") under the symbol "A23".

**ITEM 10. ADDITIONAL INFORMATION**

**A. Share Capital**

Not applicable.

**B. Notice of Articles and Articles of Association**

The following is a summary of certain important provisions of our articles and certain related sections of the BCBCA. Please note that this is only a summary and is not intended to be exhaustive. This summary is subject to, and is qualified in its entirety by reference to, the provisions of our articles and the BCBCA.

**Stated Objects or Purposes**

Our articles do not contain stated objects or purposes and do not place any limitations on the business that we may carry on.

**Directors**

 

*Power to vote on matters in which a director is materially interested*. Under the BCBCA a director who has a material interest in a contract or transaction, whether made or proposed, that is material to us, must disclose such interest to us, subject to certain exceptions such as if the contract or transaction: (i) is an arrangement by way of security granted by us for money loaned to, or obligations undertaken by, the director for our benefit or for one of our affiliates' benefit; (ii) relates to an indemnity or insurance permitted under the BCBCA; (iii) relates to the remuneration of the director in his or her capacity as director, officer, employee or agent of our company or of one of our affiliates; (iv) relates to a loan to our company while the director is the guarantor of some or all of the loan; or (v) is with a corporation that is affiliated with us while the director is also a director or senior officer of that corporation or an affiliate of that corporation. Directors will also be required to comply with certain other relevant provisions of the BCBCA regarding conflicts of interest.

Under our articles, a director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter is not entitled to vote on any directors' resolution to approve that contract or transaction, unless all the directors have a disclosable interest in that contract or transaction, in which case any or all of those directors may vote on such resolution.

*Directors' power to determine the remuneration of directors.* The remuneration of our directors, if any, may be determined by our directors subject to our articles. If the directors so decide, the remuneration of the directors, if any, will be determined by the shareholders. That remuneration may be in addition to any salary or other remuneration paid to any officer or employee of the Company as such, who is also a director.

*Number of shares required to be owned by a director.* Neither our articles nor the BCBCA provide that a director is required to hold any of our shares as a qualification for holding his or her office. To align the economic interests of directors with those of our shareholders, non-executive directors receive $1,150 CAD per month for their services.

**Certain Amendments and Change of Control**

In addition to any other voting right or power to which the holders of voting shares shall be entitled by law or regulation or other provisions of our articles from time to time in effect, but subject to the provisions of our articles, holders of voting shares shall be entitled to vote separately as a class, in addition to any other vote of our shareholders that may be required, in respect of any alteration, repeal or amendment of our articles which would adversely affect the rights or special rights of the holders of common shares or affect the holders of common shares differently, on a per share basis.

Our articles do not contain any change of control limitations with respect to a merger, acquisition or corporate restructuring that involves us.

**Shareholder Meetings**

Subject to applicable stock exchange requirements, we must hold a general meeting of our shareholders at least once every calendar year at a time and place determined by our board of directors, provided that the meeting must not be held later than 15 months after the preceding annual general meeting.

The Company must send notice of the date, time and location of any meeting of shareholders (including, without limitation, any notice specifying the intention to propose a resolution as an exceptional resolution, a special resolution or a special separate resolution, and any notice to consider approving an amalgamation into a foreign jurisdiction, an arrangement or the adoption of an amalgamation agreement, and any notice of a general meeting, class meeting or series meeting), in the manner provided in our Articles, or in such other manner, if any, as may be prescribed by ordinary resolution (whether previous notice of the resolution has been given or not), to each shareholder entitled to attend the meeting, to each director and to the auditor of the Company, unless our Articles otherwise provide, at least the following number of days before the meeting: (1) if and for so long as the Company is a public company, 21 days; (2) otherwise, 10 days. Under the BCBCA, shareholders entitled to notice of a meeting may waive or reduce the period of notice for that meeting, provided applicable securities laws are met. The accidental omission to send notice of any meeting of shareholders to, or the non-receipt of any notice by, any of the persons entitled to notice does not invalidate any proceedings at that meeting.

Subject to the special rights and restrictions attached to the shares of any class or series of shares and to Article 11.4 of our Articles, the quorum for the transaction of business at a meeting of shareholders is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 5% of the issued shares entitled to be voted at the meeting. If there is only one shareholder entitled to vote at a meeting of shareholders: (1) the quorum is one person who is, or who represents by proxy, that shareholder, and (2) that shareholder, present in person or by proxy, may constitute the meeting.

**Shareholder Proposals**

Under the BCBCA, qualified shareholders holding shares that constitute (i) at least one percent (1%) of our issued voting shares or (ii) have a fair market value in excess of CAD$2,000 may make proposals for matters to be considered at the annual general meeting of shareholders. Such proposals must be sent to us in advance of any proposed meeting by delivering a timely written notice in proper form to our registered office in accordance with the requirements of the BCBCA. The notice must include information on the business the shareholder intends to bring before the meeting. To be a qualified shareholder, a shareholder must currently be and have been a registered or beneficial owner of at least one share of the company for at least two years before the date of signing the proposal.

**Limitations on Rights to Own Securities**

There are no limitations on rights to own or exercise voting rights on our securities by the BCBCA or our articles.

**Limitation of Liability and Indemnification**

Under the BCBCA, a company may indemnify: (i) a current or former director or officer of that company; (ii) a current or former director or officer of another corporation if, at the time such individual held such office, the corporation was an affiliate of the company, or if such individual held such office at the company's request; or (iii) an individual who, at the request of the company, held, or holds, an equivalent position in another entity (an "indemnifiable person") against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by him or her in respect of any civil, criminal, administrative or other legal proceeding or investigative action (whether current, threatened, pending or completed) in which he or she is involved because of that person's position as an indemnifiable person, unless: (i) the individual did not act honestly and in good faith with a view to the best interests of such company or the other entity, as the case may be; or (ii) in the case of a proceeding other than a civil proceeding, the individual did not have reasonable grounds for believing that the individual's conduct was lawful. A company cannot indemnify an indemnifiable person if it is prohibited from doing so under its articles or by applicable law. A company may pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an indemnifiable person in respect of that proceeding only if the indemnifiable person has provided an undertaking that, if it is ultimately determined that the payment of expenses was prohibited, the indemnifiable person will repay any amounts advanced. Subject to the aforementioned prohibitions on indemnification, a company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by an indemnifiable person in respect of such eligible proceeding if such indemnifiable person has not been reimbursed for such expenses, and was wholly successful, on the merits or otherwise, in the outcome of such eligible proceeding or was substantially successful on the merits in the outcome of such eligible proceeding. On application from an indemnifiable person or the company, a court may make any order the court considers appropriate in respect of an eligible proceeding, including the indemnification of penalties imposed or expenses incurred in any such proceedings and the enforcement of an indemnification agreement. As permitted by the BCBCA, our articles require us to indemnify our directors, former directors or alternate directors (and such individual's respective heirs and legal representatives) and permit us to indemnify any person to the extent permitted by the BCBCA.

**C. Material Contracts**

Please refer to Item 4 Section B for a discussion of our largest customer contract.

**D. Exchange Controls**

We are not aware of any governmental laws, decrees, regulations or other legislation in Canada that restrict the export or import of capital, including the availability of cash and cash equivalents for use by our affiliated companies, or that affect the remittance of dividends, interest or other payments to non-resident holders of our securities. Any remittances of dividends to residents of the United States and to other non-resident holders are, however, subject to withholding tax. See Item 10.E. - "Taxation".

**E. Taxation**

**U.S. Federal Income Taxation**

This summary does not address the U.S. federal income tax consequences of the ownership and disposition by non-U.S. holders of common shares. The discussion below is limited to U.S. federal income tax matters. Accordingly, holders should consult their tax advisors regarding the U.S. federal alternative minimum, the Medicare tax on net investment income, U.S. federal estate and gift, U.S. state and local, and non-U.S. tax consequences (including the potential application of and operation of any income tax treaties) relating to the ownership and disposition of common shares.

This summary is based on provisions of the U.S. Internal Revenue Code (the "**Code**"), U. S. Treasury regulations promulgated thereunder (whether final, temporary, or proposed), administrative rulings, and judicial interpretations thereof, and the Canada-U.S. Tax Treaty, all as in effect on the date hereof, and all of which are subject to change, possibly with retroactive effect.

This summary is for general information purposes only and does not purport to be a complete analysis or listing of all potential U.S. federal income tax considerations that may apply to a holder as a result of the ownership and disposition of common shares. In addition, this summary does not take into account the individual facts and circumstances of any particular holder that may affect the U.S. federal income tax consequences to such holder, including specific tax consequences to a holder under applicable tax treaties other than the Canada-U.S. Tax Treaty. Accordingly, this summary is not intended to be, and should not be construed as, legal or U.S. federal income tax advice with respect to any holder. Holders should consult their tax advisors regarding such tax consequences in light of their individual circumstances.

This summary is limited to considerations relevant for investors holding common shares as capital assets (generally, property held for investment). This summary does not discuss all aspects of U.S. federal income taxation that may be important to holders in light of their individual circumstances, including holders subject to special tax rules, such as:

● banks, thrifts, mutual funds, financial institutions, underwriters, insurance companies;

● real estate investment trusts and regulated investment companies;

● tax-exempt organizations, pension funds, qualified retirement plans, individual retirement accounts, or other tax-deferred accounts;

● expatriates or former long-term residents of the U.S.;

● persons holding shares through a partnership, limited liability, or other fiscally or tax transparent entity;

● dealers or traders in securities, commodities or currencies;

● grantor trusts;

● persons subject to the alternative minimum tax;

● U.S. persons whose "functional currency" is not the U.S. dollar;

● partnerships or other pass-through entities;

● persons who received common shares through the exercise of incentive stock options or through the issuance of restricted stock under an equity incentive plan or through a tax-qualified retirement plan or through other compensatory arrangements;

● persons who own (directly, indirectly or constructively) 10% or more (by vote or value) of the outstanding shares of the Company; or

● holders holding common shares as a position in a "straddle," as part of a "synthetic security" or "hedge," as part of a "conversion transaction" or other integrated investment, or as other than a capital asset.

Holders that are subject to special provisions under the Code, including holders described immediately above, should consult their tax advisors regarding the U.S. federal, U.S. federal alternative minimum, U.S. federal estate and gift, U.S. state and local, and non-U.S. tax consequences of the ownership and disposition of common shares.

As used in this Annual Report, the term "**U.S. holder**" means a beneficial owner of common shares, that is, for U.S. federal income tax purposes:

● an individual who is a citizen or resident of the U.S.;

● a corporation or other entity taxable as a corporation that is created or organized in or under the laws of the U.S., any state in the U.S. or the District of Columbia;

● an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

● a trust that (i) is subject to the primary supervision of a court within the U.S. and the control of one or more U.S. persons with respect to all of its substantial decisions, or (ii) has a valid election in effect under applicable U.S. Treasury regulations to be treated as a U.S. person.

As used in this Annual Report, the term "**non-U.S. holder**" means a beneficial owner (other than a partnership or other entity or arrangement treated as a partnership for U.S. federal income tax purposes) of common shares, that is not a U.S. holder.

The U.S. federal income tax treatment of a partner in a partnership (including any entity or arrangement treated as a partnership for U.S. federal income tax purposes) that holds common shares generally will depend on the status of the partner and the activities of the partnership. A partnership or partner in a partnership that holds common shares should consult its own tax advisor regarding the tax consequences of investing in and disposing of common shares.

**U.S. Federal Income Tax Consequences to U.S. Holders of the Ownership and Disposition of Common Shares**

***Distributions on Common Shares***

Subject to the discussion under "*-Passive Foreign Investment Company Status*" below, the gross amount of any distribution on common shares (including withheld taxes, if any) made out of the Company's current or accumulated earnings and profits (as determined for U.S. federal income tax purposes) will generally be taxable to a U.S. holder as ordinary dividend income on the date such distribution is actually or constructively received. Any such dividends paid to corporate U.S. holders generally will not qualify for the dividends-received deduction that may otherwise be allowed under the Code with respect to dividends received from U.S. corporations. Distributions in excess of the Company's current and accumulated earnings and profits will be treated first as a non-taxable return of capital to the extent of the U.S. holder's basis in such holder's common shares, and thereafter as capital gain. There can be no assurance that the Company will maintain calculations of its earnings and profits in accordance with U.S. federal income tax accounting principles. U.S. holders should therefore assume that any distribution with respect to common shares will constitute ordinary dividend income.

Dividends paid in currencies other than the U.S. dollar, if any, will generally be taxable to a U.S. holder as ordinary dividend income in an amount equal to the U.S. dollar value of the currency received on the date such distribution is actually or constructively received. Such U.S. dollar value must be determined using the spot rate of exchange on such date, regardless of whether the non-U.S. currency is actually converted into U.S. dollars on such date. The U.S. holder may realize exchange gain or loss if the currency received is converted into U.S. dollars after the date on which it is actually or constructively received. Any such gain or loss will be ordinary and will generally be treated as from sources within the U.S. for U.S. foreign tax credit purposes.

Dividends received by non-corporate U.S. holders (including individuals) from a "qualified foreign corporation" may be eligible for reduced rates of taxation, provided that certain holding period requirements and other conditions are satisfied. For these purposes, a non-U.S. corporation will be treated as a qualified foreign corporation if it is eligible for the benefits of a comprehensive income tax treaty with the U.S. which is determined by the U.S. Treasury Department to be satisfactory for purposes of these rules and which includes an exchange of information provision. The U.S. Treasury Department has determined that the Canada-U.S. Tax Treaty meets these requirements. A non-U.S. corporation is also treated as a qualified foreign corporation with respect to dividends paid by that corporation on shares that are readily tradable on an established securities market in the U.S. U.S. Treasury Department guidance indicates that the common or ordinary shares which are listed on Nasdaq, should be considered readily tradable on an established securities market in the U.S. Accordingly, the common shares are expected to satisfy this requirement in respect of the taxable year ended December 31, 2022. However, there can be no assurance that the common shares will be considered readily tradable on an established securities market in future years. Notwithstanding the foregoing, the Company will not constitute a qualified foreign corporation for purposes of these rules if either it is a passive foreign investment company, or "PFIC", for the taxable year in which it pays a dividend or for the preceding taxable year (see "*-Passive foreign investment company status*" below).

U.S. holders should consult their own advisors regarding the availability of the lower tax rates applicable to qualified dividend income for any dividends paid on common shares.

Subject to certain conditions and limitations, withholding taxes, if any, on dividends paid by the Company may be treated as foreign taxes eligible for credit against a U.S. holder's U.S. federal income tax liability under the U.S. foreign tax credit rules. For purposes of calculating the U.S. foreign tax credit, dividends paid on common shares will generally be treated as income from sources outside the U.S. and will generally constitute passive category income. The rules governing the U.S. foreign tax credit are complex. U.S. holders should consult their tax advisors regarding the availability of the U.S. foreign tax credit under their individual circumstances.

***Sale, Exchange, Redemption or Other Taxable Disposition of Common Shares***

 ****

Subject to the discussion under "*-Passive Foreign Investment Company Status*" below, a U.S. holder will generally recognize gain or loss on any sale, exchange, redemption, or other taxable disposition of common shares in an amount equal to the difference between the U.S. dollar value of the amount realized on the disposition and such holder's tax basis in the shares (determined in U.S. dollars). Any gain or loss recognized by a U.S. holder on a taxable disposition of common shares will generally be capital gain or loss and will be long-term capital gain or loss if the holder's holding period in such shares exceeds one year at the time of the disposition. Preferential tax rates apply to long-term capital gains of a U.S. holder that is an individual, estate or trust. There are currently no preferential tax rates for long-term capital gains of a U.S. holder that is a corporation. The deductibility of capital losses is subject to limitations. Any gain or loss recognized by a U.S. holder on the sale or exchange of common shares will generally be treated as U.S. source gain or loss. Each U.S. holder should consult its own tax advisor as to the tax treatment of dispositions of common shares in exchange for Canadian dollars.

***Passive Foreign Investment Company Status***

 ****

Notwithstanding the foregoing, certain adverse U.S. federal income tax consequences could apply to a U.S. holder if the Company is treated as a PFIC for any taxable year during which the U.S. holder holds common shares. A non-U.S. corporation, such as the Company, will be classified as a PFIC for U.S. federal income tax purposes for any taxable year in which, after applying certain look-through rules, either (i) 75% or more of its gross income for such year consists of certain types of "passive" income or (ii) 50% or more of the value of its assets (determined on the basis of a quarterly average) during such year produce or are held for the production of passive income. Passive income generally includes dividends, interest, royalties, rents, annuities, net gains from the sale or exchange of property producing such income and net foreign currency gains.

The Company is not currently expected to be treated as a PFIC for U.S. federal income tax purposes for its taxable year ended December 31, 2022, or for foreseeable future taxable years. This conclusion is a factual determination, however, that must be made annually at the close of each taxable year and, thus, is subject to change. In addition, certain aspects of the PFIC rules are unclear and subject to differing interpretations. Accordingly, there can be no assurance that the Company will not be treated as a PFIC for any taxable year.

If the Company were to be treated as a PFIC, U.S. holders holding common shares could be subject to certain adverse U.S. federal income tax consequences with respect to gains realized on a taxable disposition of such shares and certain distributions received on such shares. In addition, dividends received with respect to common shares would not constitute qualified dividend income eligible for preferential tax rates if the Company is treated as a PFIC for the taxable year of the distribution or for its preceding taxable year. Certain elections (including a mark-to-market election) may be available to U.S. holders to mitigate some of the adverse tax consequences resulting from PFIC treatment. U.S. holders should consult their tax advisors regarding the application of the PFIC rules to their investment in common shares.

Each current or prospective U.S. holder should consult its own tax advisor regarding potential status of the Company as a PFIC, the possible effect of the PFIC rules to such holder in their particular circumstances, information reporting required if the Company were treated as a PFIC and the availability of any election that may be available to the holder to mitigate adverse U.S. federal income tax consequences of holding shares in a PFIC.

***Information Reporting and Backup Withholding***

 ****

In general, information reporting will apply to dividends in respect of common shares and the proceeds from the sale, exchange, or redemption of common shares that are paid to a U.S. holder within the U.S. (and in certain cases, outside the U.S.), unless such holder is an exempt recipient. A backup withholding tax may apply to such payments if the holder fails to provide a taxpayer identification number ("**TIN**") or certification of exempt status or fails to report in full its dividend and interest income (or if such holder otherwise fails to establish an exemption).

Any amounts withheld under the backup withholding rules will be allowed as a refund or a credit against the holder's U.S. federal income tax liability provided the required information is timely furnished to the IRS. The IRS may impose a penalty upon any taxpayer that fails to provide its correct TIN.

Certain U.S. holders holding specified foreign financial assets with an aggregate value in excess of the applicable dollar threshold are required to report information relating to common shares, subject to certain exceptions (including an exception for common shares held in accounts maintained by certain financial institutions), by attaching a complete IRS Form 8938, Statement of Specified Foreign Financial Assets, to their tax return, for each year in which they hold common shares. Failure to complete such reporting could result in substantial penalties and in the extension of statute of limitations with respect to such holder's U.S. federal income tax returns. Holders should consult their tax advisors regarding the application of information reporting requirements relating to their ownership of common shares.

**Certain Material Canadian Federal Income Tax Considerations**

The following is a summary of the principal Canadian federal income tax considerations generally applicable to the holding and disposition of common shares by a beneficial owner, and who, at all relevant times, for purposes of the Income Tax Act (Canada) (the "**Tax Act**"): (i) deals at arm's length with the Company; (ii) is not affiliated with the Company; (iii) holds the common shares as capital property; and (iv) has not entered into, with respect to the common shares, a "derivative forward agreement", a "synthetic disposition arrangement" or a "dividend rental arrangement", each as defined in the Tax Act (a "Holder"). Generally, the common shares will be capital property to a Holder provided the Holder does not acquire or hold such common shares in the course of carrying on a business or as part of an adventure or concern in the nature of trade.

This summary is of a general nature only and is not intended to be, nor should it be construed to be, legal or tax advice to any Holder. Accordingly, Holders are urged to consult their own tax advisors with respect to their particular circumstances.

This summary is based upon the current provisions of the Tax Act, the regulations thereunder, all specific proposals to amend the Tax Act and the regulations publicly announced by the Minister of Finance (Canada) prior to the date hereof, the Canada-U.S. Tax Convention (1980), as amended (the "**Treaty**"), the Fifth Protocol to the Treaty signed on September 21, 2007 (the "Protocol"), and Canadian tax counsel's understanding of the current administrative practices published in writing by the Canada Revenue Agency. This summary does not otherwise take into account any changes in law, whether by legislative, governmental or judicial decision or action, nor does it take into account or consider any provincial, territorial or foreign income tax considerations.

Generally, for purposes of the Tax Act, all amounts relating to the acquisition, holding or disposition of common shares must be converted into Canadian dollars based on exchange rates as determined in accordance with the Tax Act. The amount of dividends, if any, required to be included in the income of, and capital gains or capital losses realized by, a Holder may be affected by fluctuations in the Canadian / U.S. dollar exchange rate.

***Holders Resident in the U.S.***

 ****

This portion of the summary is generally applicable to a Holder who, at all relevant times, for purposes of the Tax Act and the Treaty: (i) is a resident of the U.S., (ii) is not, and is not deemed to be, a resident of Canada, and (iii) does not use or hold, and is not deemed to use or hold, the common shares in a business carried on in Canada (a "U.S. resident holder"). Special rules, which are not discussed in this summary, may apply to a U.S. resident holder that is an insurer that carries on an insurance business in Canada and elsewhere.

*Dividends on Common Shares*

 

Dividends paid or credited, or deemed under the Tax Act to be paid or credited, to a U.S. resident holder on common shares are subject to Canadian withholding tax under the Tax Act at the rate of 25%; however, the rate of Canadian withholding tax applicable to a U.S. resident holder is generally reduced to 15% under the Treaty (or 5% in the case of a U.S. resident holder that is a corporation beneficially owning at least 10% of the common shares). A U.S. resident holder must not be subject to the limitation on benefits restrictions in the Treaty to be entitled to the 15% (or 5%) withholding tax rate on dividends on the common shares.

*Disposition of Common Shares*

 

A U.S. resident holder for whom common shares are not "taxable Canadian property" will not be subject to tax under the Tax Act on the disposition of such shares. Generally, provided that common shares are listed on a "designated stock exchange" (which includes the TSX and the Nasdaq), common shares will not be taxable Canadian property to a U.S. resident holder at a particular time unless at any time during the 60-month period immediately preceding that time (a) one or any combination of (i) the U.S. resident holder, (ii) persons with whom the U.S. resident holder did not deal at arm's length, or (iii) partnerships in which the U.S. resident holder or a person with whom the U.S. resident holder did not deal at arm's length held a membership interest directly or indirectly through one or more partnerships, owned 25% or more of the issued shares of any class or series of the capital stock of the Company, and at that time (b) more than 50% of the fair market value of the common shares was derived directly or indirectly from one or any combination of real or immovable property situated in Canada, Canadian resource properties (as defined in the Tax Act), timber resource properties (as defined in the Tax Act) or an option in respect of, an interest in, or for civil law a right in, any such property, whether or not such property exists. common shares may also be deemed to be taxable Canadian property of a U.S. resident holder in certain circumstances. U.S. resident holders whose common shares may constitute taxable Canadian property should consult their own tax advisors.

***Holders Resident in Canada***

This portion of the summary is generally applicable to a Holder who, at all relevant times, for purposes of the Tax Act, is, or is deemed to be resident in Canada (a "**Canadian resident holder**"). Certain Canadian resident holders may be entitled to make, or may have already made, the irrevocable election under subsection 39(4) of the Tax Act, the effect of which may be to deem the common shares (and all other "Canadian securities" as defined in the Tax Act) owned by such Canadian resident holder to be capital property in the taxation year in which the election is made and in all subsequent taxation years. Canadian resident holders to whom common shares might not otherwise be considered capital property should consult their own tax advisors regarding this election.

This portion of the summary is not applicable to a Canadian resident holder (i) that is a "specified financial institution" as defined in the Tax Act, (ii) an interest in which is a "tax shelter investment" as defined in the Tax Act, (iii) that is a "financial institution" for the purposes of the mark-to-market rules in the Tax Act, (iv) that makes or who has made an election under section 261 of the Tax Act to report its "Canadian tax results" as defined in the Tax Act in a currency other than the Canadian currency, or (v) that is a corporation that, or is a corporation that does not deal at arm's length for purposes of the Tax Act with a corporation resident in Canada that, is or becomes, as part of a transaction or event or series of transactions or events that includes the acquisition of the common shares, controlled by (a) a non-resident corporation, (b) a non-resident individual, (c) a non-resident trust, or (d) a group of persons comprised of any combination of persons included in (a) to (c) above that do not deal with each other at arm's length for the purposes of the "foreign affiliate dumping" rules in section 212.3 of the Tax Act. Such Canadian resident holders should consult their own tax advisors.

*Dividends on Common Shares*

 

Dividends received or deemed to be received on common shares by an individual Canadian resident holder (including certain trusts) will be included in computing the individual's income and will be subject to the gross-up and dividend tax credit rules applicable to taxable dividends received from taxable Canadian corporations, including an enhanced gross-up and dividend tax credit for dividends designated as "eligible dividends" by the Company. Dividends received or deemed to be received on common shares by a Canadian resident holder that is a corporation will be included in computing its income and will generally be deductible in computing taxable income. In certain circumstances, subsection 55(2) of the Tax Act will treat a taxable dividend received by a Canadian resident holder that is a corporation as proceeds of a disposition or a capital gain. A Canadian resident holder that is a "private corporation" or a "subject corporation" (each as defined in the Tax Act) may be liable to pay a 38 1/3% refundable tax under Part IV of the Tax Act on dividends received or deemed to be received on the common shares to the extent that such dividends are deductible in computing the Canadian resident holder's taxable income.

*Disposition of Common Shares*

Generally, a Canadian resident holder who disposes or is deemed to dispose of a subordinate voting share will realize a capital gain (or capital loss) equal to the amount by which the proceeds of disposition, net of any reasonable costs of disposition, are greater (or less) than the adjusted cost base of the common shares to the Canadian resident holder.

Generally, one-half of any capital gain (a "**taxable capital gain**") realized must be included in the Canadian resident holder's income. Subject to and in accordance with the provisions of the Tax Act, one-half of any capital loss (an "allowable capital loss") must be deducted against taxable capital gains realized in the year of disposition. Any unused allowable capital losses may be applied to reduce net taxable capital gains realized in any of the three prior years or in any subsequent year in the circumstances and to the extent provided in the Tax Act.

The amount of any capital loss realized by a Canadian resident holder that is a corporation on the disposition of a subordinate voting share may be reduced by the amount of any dividends received (or deemed to be received) by the Canadian resident holder on such subordinate voting share to the extent and under the circumstances prescribed by the Tax Act. Similar rules may apply where a subordinate voting share is owned by a partnership or trust of which a corporation, trust or partnership is a member or beneficiary. Such Canadian resident holders should consult their own tax advisors regarding their particular circumstances.

A Canadian resident holder that is throughout the year a "Canadian-Controlled Private Corporation" (as defined in the Tax Act) may be liable to pay a refundable tax at a rate of 10 2/3% on certain investment income, including taxable capital gains. Canadian resident holders that are "Canadian-Controlled Private Corporations" should consult their own tax advisors regarding their particular circumstances.

**THE U.S. FEDERAL AND CANADIAN FEDERAL INCOME TAX CONSEQUENCES SUMMARIZED ABOVE ARE FOR GENERAL INFORMATION ONLY. EACH HOLDER OF COMMON SHARES SHOULD CONSULT SUCH HOLDER'S TAX ADVISOR AS TO THE CONSEQUENCES OF AN INVESTMENT IN COMMON SHARES IN LIGHT OF SUCH HOLDER'S PARTICULAR CIRCUMSTANCES.**

**F. Dividends and Payment Agents**

Not applicable.

**G. Statement by Experts**

Not applicable.

**H. Documents on Display**

You may request a copy of this Annual Report and the related exhibits, and any other report, at no cost, by writing to us at 559 Briar Hill Avenue, Toronto, Ontario, Canada M5N 1N1. Copies of our financial statements and other continuous disclosure documents required under applicable securities legislation are available for viewing on SEDAR at www.sedar.com. All of the documents referred to are in English.

We are subject to the informational requirements of the Exchange Act and are required to file reports and other information with the SEC. The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information regarding registrants that make electronic filings with the SEC using its EDGAR system.

We also make available on our website's investor relations page, free of charge, our Annual Report and the text of our reports on Form 6-K, including any amendments to these reports, as well as certain other SEC filings, as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. The information contained on our website is not incorporated by reference in this Annual Report.

**I. Subsidiary Information**

Not applicable.

**ITEM 11. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK**

**Financial Instruments and Financial Risk Exposure**

The Company is exposed to a variety of financial risks, which results from its financing, operating and investing activities. The objective of financial risk management is to contain, where appropriate, exposures in these financial risks to limit any negative impact on the Company's financial performance and position.

The Company's financial instruments are its cash, trade and other receivables, payables, other payables and loans. The main purpose of these financial instruments is to raise finance for the Company's operation. The Company actively measures, monitors and manages its financial risk exposures by various functions pursuant to the segregation of duties and principals. The risks arising from the Company's financial instruments are mainly credit risk and currency risk. The risk rate on loans is fixed. The risk management policies employed by the Company to manage these risks are discussed below.

**Credit Risk**

Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date. The Company closely monitors the activities of its counterparties and controls the access to its intellectual property which enables it to ensure the prompt collection of customers' balances. The Company's main financial assets are cash and cash equivalents as well as other receivables and represent the Company's maximum exposure to credit risk in connection with its financial assets.

Wherever possible and commercially practical the Company holds cash with major financial institutions in Israel. Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date. The Company closely monitors the activities of its counterparties and controls the access to its intellectual property which enables it to ensure the prompt collection of customers' balances.

Although we maintain incident management and disaster response plans, in the event of a major disruption caused by a natural disaster or man-made problem, or outbreaks of pandemic diseases, including COVID-19, we may be unable to continue our operations and may experience system interruptions and reputational harm. Acts of terrorism and other geo-political unrest, including the ongoing conflict in Ukraine, could also cause disruptions in our business or the business of our customers, partners, vendors, or the economy as a whole. All of the aforementioned risks may be further increased if our disaster recovery plans prove to be inadequate.

The Company's main financial assets are cash and cash equivalents and trade accounts receivable as well as marketable securities and represent the Company's maximum exposure to credit risk in connection with its financial assets. Wherever possible and commercially practical the Company holds cash with major financial institutions In Israel.

---

| | | |
|:---|:---|:---|
|  | **December 31,** | **December 31,** |
|  | **2022** | **2021** |
| Cash and Cash Equivalents | $**2616** | $8470 |
| Deposits | **8** | 60 |
| Trade receivables | **1373** | 857 |
| Other Accounts Receivable | **2570** | 434 |
| **Total** | $**6567** | $9821 |

---

**Market Risks**

The Company's business of maintenance services of various electronic systems is highly competitive and involves a certain degree of risk. The Company's business operations will depend largely upon the outcome of continued sales and services to security establishments and the initiation of sales of their products to the civilian markets.

The Company's Cust2Mate business is new, and the Company is aware of competitors in the market. In addition to the regular management oversight and skills required, success in this segment will require the Company to penetrate the market as rapidly as possible.

As of December 31, 2022, if the Company's functional currency (ILS) had strengthened/ weakened by 5% against the USD, with all other variables held constant, the loss for the year would decrease /increase by approximately $97.

**Liquidity Risk:**

Liquidity risk is the risk that arises when the maturity of assets and the maturity of liabilities do not match. An unmatched position potentially enhances profitability but can also increase the risk of loss. The Company has procedures with the object of minimizing such loss by maintaining sufficient cash and other highly liquid current assets and by having an available adequate amount of committed credit facilities. The following tables detail the Company's remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay

---

| | | | |
|:---|:---|:---|:---|
| **Contractual** | **Contractual** | **Contractual** | **Contractual** |
|  | **Carrying amounts** | **Within 1 year** | **over 1 year** |
| Trade payables | $2224 | $2224 | $- |
| Other accounts payable | $956 | $956 | $- |
| Loans | $1744 | $1403 | $341 |
| Lease liability | $886 | $281 | $605 |

---

**Interest Rate Risks:**

The Company is exposed to cash flow interest rate risk from long-term borrowings at variable rate. It is currently Company policy that between 50% and 75% of Company borrowings are fixed rate borrowings. This policy is managed centrally. Although the board accepts that this policy neither protects the Company entirely from the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest payments, it considers that it achieves an appropriate balance of exposure to these risks.

During 2022 and 2021, the Company's borrowings at variable rate were denominated in NIS.

The Company analyses the interest rate exposure on a quarterly basis. A sensitivity analysis is performed by applying a simulation technique to the liabilities that represent major interest-bearing positions. Various scenarios are run taking into consideration refinancing, renewal of the existing positions, alternative financing, and hedging. Based on the simulations performed, the impact on profit and loss and net assets of a 100 basis point shift (being the maximum reasonable expectation of changes in interest rates) would be approximately $100.

**Capital Management:**

The Company considers its capital to be comprised of shareholders' equity. The Company's objectives in managing its capital are to maintain its ability to continue as a going concern and to further develop its business. To effectively manage the Company's capital requirements, the Company has a planning and budgeting process in place to meet its strategic goals. In order to facilitate the management of its capital requirements, the Company prepares expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. Management reviews the capital structure on a regular basis to ensure the above objectives are met. There have been no changes to the Company's approach to capital management during the year ended December 31, 2022. There are no externally imposed restrictions on the Company's capital.

**ITEM 12. DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES**

Not applicable.

**PART II**

**ITEM 13. DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES**

None.

**ITEM 14. MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS**

**A. – D. Material Modifications to the Rights of Security Holders**

None.

**E. Use of Proceeds**

None.

**ITEM 15. CONTROLS AND PROCEDURES**

**A. – D.**

**Disclosure controls and procedures**

Our management, including our chief executive officer and our chief financial officer are responsible for establishing and maintaining our disclosure controls and procedures (within the meaning of Rule 13a-15(e) of the Exchange Act). These controls and procedures were designed to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and our chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. We evaluated our disclosure controls and procedures under the supervision of our chief executive officer and our chief financial officer as of December 31, 2022. Based upon that evaluation, our management, including our CEO and CFO, concluded that our disclosure controls and procedures as of December 31, 2022 were not effective.

**Management's annual report on internal control over financial reporting**

Our management, including our CEO, and our CFO, is responsible for establishing and maintaining adequate internal control over our financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act of 1934, as amended. Our internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes policies and procedures that:

● pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and asset dispositions;

● provide reasonable assurance that transactions are recorded as necessary to permit the preparation of our financial statements in accordance with generally accepted accounting principles;

● provide reasonable assurance that receipts and expenditures are made only in accordance with authorizations of our management and board of directors (as appropriate); and

● provide reasonable assurance regarding the prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on our financial statements.

Due to its inherent limitations, internal controls over financial reporting may not prevent or detect misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Under the supervision and with the participation of our management, including our CEO, and our CFO, we assessed the effectiveness of our internal control over financial reporting as of December 31, 2022 based on the framework for Internal Control-Integrated Framework set forth by The Committee of Sponsoring Organizations of the Treadway Commission (COSO) (2013).

Our Management found our material weakness to be a result of a lack of sufficient accounting resources with relevant technical accounting skills to address issues related to the financial statement close process, and because of the size of the Company and its staff complement, we were not able to sufficiently design internal controls to provide the appropriate level of oversight regarding the financial recordkeeping and review of the Company's financial reporting and accumulate and communicate such information to our management to allow timely decisions regarding disclosure.

To remediate the material weakness in our internal controls over financial reporting described above, we have initiated remedial measures and are taking additional measures to remediate this material weakness. First, we are continuing to roll out an enhanced financial and accounting system. Second, we have hired additional personnel. Third, we are strengthening our controls financial reporting, with the assistance of outside consultants, experts in the controls and procedures over financing reporting. Consistent with our stage of development, we continue to rely on risk-mitigating procedures during our financial closing process in order to provide comfort that the financial statements are presented fairly in accordance with IFRS.

Due to the material weakness described above, our management concluded that our internal control over financial reporting were not effective as of December 31, 2022.

**Changes in internal control over financial reporting**

There were no material changes in our internal control over financial reporting, other than the remediation efforts described above, for the quarter ended and the year ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

**ITEM 16A. AUDIT COMMITTEE FINANCIAL EXPERT**

Our audit committee is comprised of Messrs. Rootenberg, de Jongh, and Niv Raz Haim with Mr. Rootenberg serving as chairman of the committee. Messrs. Rootenberg, de Jongh, and Niv Raz Haim each meet the independence requirements under the rules of Nasdaq and under Rule 10A-3 under the Exchange Act. We have determined that Mr. Rootenberg is an "audit committee financial expert" within the meaning of Item 407 of Regulation S-K. For information relating to qualifications and experience of each audit committee member, see Item 6 - "Directors, Senior Management and Employees".

**ITEM 16B. CODE OF ETHICS**

Our board of directors has adopted a code of ethics applicable to our directors, officers, and employees. This code is intended to qualify as a "code of ethics" within the meaning of the applicable rules of the SEC. Our code of ethics is available on our website at www.a2zas.com. Information contained on, or that can be accessed through, our website is not incorporated by reference into this Annual Report.

**ITEM 16C. PRINCIPAL ACCOUNTANT FEES AND SERVICES**

**Principal Accountant Fees and Services**

The following table summarizes the fees charged by BDO Ziv Haft for certain services rendered to our company during fiscal year 2022 and fiscal year 2021.

---

| | | |
|:---|:---|:---|
|  | **For the year ended** | **For the year ended** |
| **CAD $** | **December 31, 2022** | **December 31, 2021** |
| Audit fees(1) | $160000 | $158000 |
| Audit-related fees(2) |  |  |
| Tax fees(3) | $15000 | $15000 |
| All other fees(4) | - | - |
| Total | $175000 | $173500 |

---

(1) The aggregate fees billed in connection with the audit of the Company.

(2) The aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company's financial statements which are not included under the heading **"Audit Fees"**.

(3) The aggregate fees billing for tax compliance, tax advice and tax planning.

(4) The aggregate fees billed for products and services provided by the auditors of the Company, other than as described above.

**Audit Committee Pre-Approval Policies and Procedures**

Our audit committee reviews and pre-approves the scope and the cost of audit services related to us and permissible non-audit services performed by the independent auditors, other than those for *de minimis* services which are approved by the audit committee prior to the completion of the audit. All of the services related to our company provided by our auditors named above have been pre-approved by the audit committee.

**ITEM 16D. EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES**

Not applicable.

**ITEM 16E. PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS**

Not applicable.

**ITEM 16F. CHANGE IN REGISTRANT'S CERTIFYING ACCOUNTANT**

Not applicable.

**ITEM 16G. CORPORATE GOVERNANCE**

The Company is a foreign private issuer and complies with corporate governance requirements of both the TSX Venture Exchange and Nasdaq.

NASDAQ Rule 5615(a)(3) permits a foreign private issuer to follow its home country practice in lieu of the requirements of the Rule 5600 Series, the requirement to distribute annual and interim reports set forth in Rule 5250(d), and the Direct Registration Program requirement set forth in Rules 5210(c) and 5255; provided, however, that such a company shall comply with the Notification of Material Noncompliance requirement (Rule 5625), the Voting Rights requirement (Rule 5640), have an audit committee that satisfies Rule 5605(c)(3), and ensure that such audit committee's members meet the independence requirement in Rule 5605(c)(2)(A)(ii).

The Company has reviewed the Nasdaq corporate governance requirements and confirms that except as described below, the Company is in compliance with the Nasdaq corporate governance standards in all significant respects:

The Company does not follow Rule 5620(c), under which the Nasdaq minimum quorum requirement for a shareholder meeting is 33-1/3% of the outstanding shares of common stock. In addition, a registrant listed on Nasdaq is required to state its quorum requirement in its by-laws. The Company's quorum requirement is set forth in its articles. A quorum for a meeting of shareholders of the Company is two shareholders or proxyholders that hold or represent, as applicable, not less than 5% of the issued and outstanding shares entitled to be voted at the meeting. In lieu of following Rule 5620(c), the Company follows the rules of the TSX Venture Exchange.

The Company does not follow Rule 5635(d), which requires shareholder approval in order to enter into any transaction, other than a public offering, involving the sale, issuance or potential issuance by the Company of common shares (or securities convertible into or exercisable for ordinary common shares) equal to 20% or more of the outstanding share capital of the Company or 20% or more of the voting power outstanding before the issuance for less than the greater of book or market value of the ordinary shares. We will follow British Columbia, Canada law with respect to any requirement to obtain shareholder approval in connection with any private placements of equity securities.

The foregoing is consistent with the laws, customs, and practices in the province of British Columbia and Canada.

**ITEM 16H. MINE SAFETY DISCLOSURE**

Not applicable.

**ITEM 16I. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS**

Not applicable.

**PART III**

**ITEM 17. FINANCIAL STATEMENTS.**

See Item 18. — "Financial Statements".

**ITEM 18. FINANCIAL STATEMENTS.**

Our Annual Financial Statements are included at the end of this Annual Report.

**ITEM 19. EXHIBITS**

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit No.** | **Exhibit Title** |
| 1.1 | [Articles of ECC Ventures 1 Corp.](ex1-1.htm) |
| 1.2 | [Certificate of Name Change](ex1-2.htm) |
| 1.3 | [Certificate of Incorporation](ex1-3.htm) |
| 2.1 | [Specimen Share Certificate](ex2-1.htm) |
| 2.2 | [Description of the Rights of Each Class of Securities](ex2-2.htm) |
| 4.1+ | [Cust2mate Smart Cart Orders with Yochananof](ex4-1.htm) |
| 4.2+ | [Maintenance and Support Agreement with Yochananof](ex4-2.htm) |
| 4.3 | [Flex Manufacturing Agreement](ex4-3.htm) |
| 4.4 | [Services Agreement with Mida Consulting and Investments Ltd.](ex4-4.htm) |
| 4.5 | [Services Agreement with Ninety Six Capital Ltd](ex4-5.htm) |
| 4.6 | [Employment Agreement with Gadi Graus](ex4-6.htm) |
| 4.7 | [Stock Option Plan](ex4-7.htm) |
| 4.8 | [RSU Plan](ex4-8.htm) |
| 4.9 | [Form of 2023 Subscription Agreement](ex4-9.htm) |
| 4.10 | [Form of 2023 Warrant](ex4-10.htm) |
| 4.11 | [Form of October 2022 Subscription Agreement](ex4-11.htm) |
| 4.12 | [Form of October 2022 Warrant](ex4-12.htm) |
| 4.13 | [Services Agreement between A2Z MS Military Solutions Ltd. and Elmag Law Offices dated November 1, 2022.](ex4-13.htm) |
| 8.1 | [List of subsidiaries](ex8-1.htm) |
| 11.1 | [Code of Ethics](ex11-1.htm) |
| 12.1 | [Certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule 15d-14(a) by Principal Executive Officer](ex12-1.htm) |
| 12.2 | [Certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule 15d-14(a) by Principal Financial Officer](ex12-2.htm) |
| 13.1 | [Certification required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) or Rule 15d-14(b) (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) of the Chief Executive Officer.](ex13-1.htm) |
| 13.2 | [Certification required by Rule 13a-14(b) (17 CFR 240.13a-14(b)) or Rule 15d-14(b) (17 CFR 240.15d-14(b)) and Section 1350 of Chapter 63 of Title 18 of the United States Code (18 U.S.C. 1350) of the Chief Financial Officer.](ex13-2.htm) |
| 101 | Interactive Data File |
| 104 | Cover Page Interactive Data File |

---

+ Indicates that certain identified information has been excluded from the exhibit because it is the type that the registrant treats as private or confidential.

**SIGNATURES**

The registrant hereby certifies that it meets all of the requirements for filing on annual report on Form 20-F and that it has duly caused and authorized the undersigned to sign this annual report on its behalf.

---

| | |
|:---|:---|
| **A2Z Smart Technologies Corp.** | **A2Z Smart Technologies Corp.** |
| By: | */s/ Bentsur Joseph* |
| Name: | Bentsur Joseph |
| Title: | *President and Chief Executive Officer* |

---

Date: March 27, 2023

**<u>A2Z SMART TECHNOLOGIES CORP.</u>**

**<u>CONSOLIDATED FINANCIAL STATEMENTS</u>**

**<u>AS OF DECEMBER 31, 2022</u>**

**<u>**TABLE OF CONTENTS**</u>**

---

| | |
|:---|:---|
|  | **Page** |
| [Independent Auditors' Report](#ax_001) (BDO Ziv Haft; Tel-Aviv, Israel; PCAOB ID#1185) | F-1 |
| [Consolidated Statements of Financial Position](#ax_002) | F-2 |
| [Consolidated Statements of Comprehensive Loss](#ax_003) | F-3 |
| [Consolidated Statements of Changes in Shareholders' Equity (Deficit)](#ax_004) | F-4 |
| [Consolidated Statements of Cash Flows](#ax_005) | F-6 |
| [Notes to Consolidated Financial Statements](#ax_006) | F-7-39 |

---

**Report of Independent Registered Public Accounting Firm**

Shareholders and Board of Directors

A2z SMART TECHNOLOGIES CORP

Vancouver, British Columbia

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated statement of financial position of A2Z SMART TECHNOLOGIES CORP and subsidiaries (the "Company") as of December 31, 2022 and 2021, the related consolidated statements of comprehensive loss, change in shareholders' equity, and cash flows for each of the three years in the period ended December 31, 2022, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2022 and 2021, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2022**,** in conformity with ***International Financial Reporting Standards as issued by the International Accounting Standards Board.***

**Basis for Opinion**

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

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

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

---

| |
|:---|
| */s/ Ziv Haft* |
| Certified Public Accountants (Isr) |
| BDO Member Firm |
| We have served as the Company's auditor since year 2017. |
| Tel Aviv, Israel |
| March 27, 2023 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**

**(In Thousands of US Dollars, except per share data)**

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| **ASSETS** |  |  |
| **Current assets** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $2616 | $8470 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits | 8 | 60 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories (*note 5*) | 375 | 1147 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade receivables, net (*note 6*) | 1373 | 857 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accounts receivable (*note 8*) | 2570 | 434 |
| **Total current assets** | 6942 | 10968 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible asset - patent, net (*note 9*) | 2207 | 2091 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill (*note 7*) | 1188 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment, net (*note 10*) | 2357 | 1072 |
| **Total non-current assets** | 5752 | 3163 |
| &nbsp;&nbsp;&nbsp;**Total Assets** | $12694 | $14131 |
| **LIABILITIES AND SHAREHOLDERS' EQUITY** |  |  |
| **Current liabilities** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Short term loan and current portion of long-term loans (*note 11*) | $1403 | $158 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability (*note 12*) | 281 | 126 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade payables | 2224 | 989 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenues (*note 13*) | 1373 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other accounts payable (*note 14*) | 956 | 1099 |
| **Total current liabilities** | 6237 | 2372 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease liability (*note 12*) | 605 | 151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long term loans (*note 15*) | 341 | 483 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Provision (*note 7*) | 1447 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Warrant Liability *(note 17)* | 1142 | 51 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Severance payment, net (*note 16*) | 33 | 167 |
| **Total non-current liabilities** | 3568 | 852 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** | 9805 | 3224 |
| **Shareholders' equity *(note 19)*** |  |  |
| Share capital and additional paid in capital | 43452 | 28297 |
| Warrant Reserve | 30863 | 34763 |
| Accumulated other comprehensive income | (1634) | (708) |
| Accumulated deficit | (67395) | (50838) |
|  | 5286 | 11514 |
| Non-controlling interest *(note 21)* | (2397) | (607) |
| Total shareholders' equity | 2889 | 10907 |
| **Total liabilities and shareholders' equity** | $12694 | $14131 |

---

<u>March 27, 2023</u> <u>"Yonathan De Yonge"</u> <u>"Joseph Bentsur"</u> <br> Date of approval of the financial statements Yonathan De Yonge - Director Joseph Bentsur President and Chief Executive Officer

*The accompanying notes are an integral part of the financial statements.*

**A2Z SMART TECHNOLOGIES CORP.**

**CONSOLIDATED STATEMENT OF COMPREHENSIVE LOSS**

**(Expressed in Thousands of US Dollars, except per share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended<br> December 31,** | **Year ended<br> December 31,** | **Year ended<br> December 31,** |
|  | **2022** | **2021** | **2020** |
| **Revenues (*note 22*)** | $9351 | $2685 | $1068 |
| Cost of revenues (*note 23*) | 7517 | 2029 | 853 |
| **Gross profit** | 1834 | 656 | 215 |
| **Expenses:** |  |  |  |
| Research and development costs (*note 24*) | $4462 | $3222 | $418 |
| Sales and marketing costs | 475 | 102 | 108 |
| General and administration expenses (*note 25*) | 13599 | 6494 | 2365 |
| **Operating loss** | (16702) | (9162) | (2676) |
| Loss on revaluation of warrant liability *(note 17)* | 254 | 30895 | 3228 |
| Financial income |  |  | (75) |
| Financial expenses (*note 27*) | 1391 | 91 | 107 |
| **Loss before taxes on income** | $(18347) | $(40148) | $(5936) |
| Income tax expense *(note 28)* | - | (142) | (17) |
| **Loss for the year** | $(18347) | $(40290) | $(5953) |
| **Other comprehensive income** |  |  |  |
| **Item that will not be reclassified to profit or loss:** |  |  |  |
| Adjustments arising from translating financial statements of foreign operations | (936) | 555 | (1282) |
| &nbsp;&nbsp;&nbsp;Remeasurement loss from defined benefit plans | 10 | - | 13 |
| &nbsp;&nbsp;&nbsp;**Other comprehensive income (loss)** | (926) | 555 | (1269) |
| **Total comprehensive loss for the year** | $(19273) | $(39735) | $(7222) |
| **Less: Net loss attributable to non-controlling shareholders** | (1790) | (1127) | (32) |
| **Net loss attributable to A2Z's shareholders** | $(17483) | $(38608) | $(7190) |
| &nbsp;&nbsp;&nbsp;**Basic and diluted loss per share** | $(0.70) | $(1.70) | $(0.43) |
| &nbsp;&nbsp;&nbsp;**Weighted average number of shares outstanding** | 27681778 | 23340621 | 16758323 |

---

*The accompanying notes are an integral part of the financial statements.*

 

**A2Z SMART TECHNOLOGIES CORP.**

**STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)**

**(Expressed in Thousands of US Dollars, except per share data)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary share capital** | **Ordinary share capital** | | | | | |
|  | **Number of shares** | **Additional paid in capital** |<br> **Warrant reserve** | **Accumulated**<br> **Other Comprehensive Income** | <br>**Accumulated deficit** |<br> **Non- controlling interest** | **Total Equity of shareholders**<br> **of the Company (Deficit)** |
| **Balance - January 1, 2022** | **26326488** | $**28297** | $**34763** | $**(708)** | $**(50838)** | $**(607)** | $**10907** |
| Net loss for the period | **-** | **-** | **-** | **-** | (16557) | (1790) | (18347) |
| Remeasurement gain from defined benefit plans | **-** | **-** | **-** | 10 |  |  | 10 |
| Adjustments arising from translating financial statements of foreign operations | **-** | **-** | **-** | (936) | **-** | - | (936) |
| &nbsp;&nbsp;&nbsp;Net comprehensive loss for the period |  |  |  | (926) | (16557) | (1790) | (19273) |
| Issuance of shares in respect of crowd funding *(note 19(Q))* | 74895 |  |  |  |  |  |  |
| Issuance of shares in respect of Isramat deal *(note 19(O))* | 273774 | 1747 |  |  |  |  | 1747 |
| Issuance of shares in private placement, net *(note 19(S))* | 2978337 | 3004 |  |  |  |  | 3004 |
| Exercise of warrants *(note 19(N))* | 630161 | 5277 | (3900) |  |  |  | 1377 |
| Exercise of options *(note 19(P))* | 116667 | 208 |  |  |  |  | 208 |
| Exercise of RSU's *(note 19(R))* | 545000 |  |  |  |  |  |  |
| Expiration of warrants *(note 17(A))* |  | 51 |  |  |  |  | 51 |
| Share based compensation *(note 20(b)(ix))* | - | 4868 | - | - | - | - | 4868 |
| **Balance - December 31, 2022** | **30945322** | $**43452** | $**30863** | $**(1634)** | $**(67395)** | $**(2397)** | $**2889** |

---

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary share capital** | **Ordinary share capital** | **Ordinary share capital** | | | | | |
|  | **Number of shares** | **Number of shares** | **Additional paid in capital** |<br> **Warrant reserve** | **Accumulated**<br> **Other Comprehensive Income** | <br>**Accumulated deficit** |<br> **Non- controlling interest** | **Total Equity of shareholders**<br> **of the Company (Deficit)** |
| **Balance - January 1, 2021** | **(\*)** | **22219910** | $**10445** | $**-** | $**(1339)** | $**(11599)** | $**520** | $**(1973)** |
| Net loss for the period |  | **-** |  |  |  | (39239) | (1051) | **(40290)** |
| Adjustments arising from translating financial statements of foreign operations |  | **-** | - | - | 631 | - | (76) | 555 |
| &nbsp;&nbsp;&nbsp;Net comprehensive loss for the period |  | **-** |  |  | 631 | (39239) | (1127) | (39735) |
| Reclassification of warrant liability *(note 17)* |  |  |  | 43964 |  |  |  | 43964 |
| Issuance of shares in private placement, net *(note 19 (L))* |  | 1305662 | 3338 |  |  |  |  | 3338 |
| Exercise of warrants *(note 19 (K))* |  | 2514693 | 12929 | (9201) |  |  |  | 3728 |
| Exercise of options *(note 19 (M))* |  | 286223 | 742 |  |  |  |  | 742 |
| Share based compensation *(note 20 (b)(ix))* |  | - | 843 | - | - | - | - | 843 |
| **Balance - December 31, 2021** | **(\*)** | **26326488** | $**28297** | $**34763** | $**(708)** | $**(50838)** | $**(607)** | $**10907** |

---

---

| | |
|:---|:---|
| (\*) | On August 13, 2021, the Board and the TSX-V approved a 1-for-3 reverse stock split, (the "Reverse Split"). Consequently, all share numbers, share prices, and exercise prices have been retroactively adjusted in these consolidated financial statements for all periods presented. |

---

*The accompanying notes are an integral part of the financial statements.*

**A2Z SMART TECHNOLOGIES CORP.**

**STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT)**

**(Expressed in Thousands of US Dollars, except per share data)**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Ordinary share capital** | **Ordinary share capital** | **Ordinary share capital** | | | | | |
|  | **Number of shares** | **Number of shares** | **Additional paid in capital** |<br> **Warrant reserve** | **Accumulated**<br> **Other Comprehensive Income** | <br>**Accumulated deficit** |<br> **Non- controlling interest** | **Total Equity of shareholders**<br> **of the Company (Deficit)** |
| **Balance - January 1, 2020** | **(\*)** | **15692126** | $**6555** | $**-** | $**(70)** | $**(5678)** | $**552** | $**1359** |
| Net loss for the period |  | **-** |  |  |  | (5921) | (32) | **(5953)** |
| Adjustments arising from translating financial statements of foreign operations |  | **-** | - | - | (1269) | - | - | (1269) |
| &nbsp;&nbsp;&nbsp;Net comprehensive loss for the period |  | **-** |  |  | (1269) | (5921) | (32) | (7222) |
| Issuance of shares in private placement, net |  | 277779 | 163 |  |  |  |  | 163 |
| Exercise of warrants |  | 182142 | 98 |  |  |  |  | 98 |
| Exercise of stock options *(note 19 (A)(D)(G))* |  | 123386 | 39 |  |  |  |  | 39 |
| Issuance of shares in private placement, net *(note 19 (H)(I))* |  | 5816784 | 2570 |  |  |  |  | 2570 |
| Issuance of warrants for services |  |  | 52 |  |  |  |  | 52 |
| Issuance of shares for services *(note 19 (C)(E)(J))* |  | 127693 | 168 |  |  |  |  | 168 |
| Issuance of stock options for services *(note 20 (B)(ix))* |  | - | 800 | - | - | - | - | 800 |
| **Balance - December 31, 2020** | **(\*)** | **22219910** | $**10445** | $**-** | $**(1339)** | $**(11599)** | $**520** | $**(1973)** |

---

---

| | |
|:---|:---|
| (\*) | On August 13, 2021, the Board and the TSX-V approved a 1-for-3 reverse stock split, (the "Reverse Split"). Consequently, all share numbers, share prices, and exercise prices have been retroactively adjusted in these consolidated financial statements for all periods presented. |

---

 

*The accompanying notes are an integral part of the financial statements.*

 

**A2Z SMART TECHNOLOGIES CORP.**

**CONSOLIDATED STATEMENT OF CASH FLOWS**

**(Expressed in Thousands of US Dollars, except per share data)**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended**<br> **December 31,** | **Year ended**<br> **December 31,** | **Year ended**<br> **December 31,** |
|  | **2022** | **2021** | **2020** |
| **Cash flows from operating activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss for the year | $(18347) | $(40290) | $(5953) |
| Adjustments to reconcile net loss to net cash provided by operating activities: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization and depreciation | 786 | 251 | 213 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share based compensation | 4868 | 843 | 601 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on revaluation of warrant liability | 254 | 30895 | 3228 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in provisions | 1190 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in severance liability | (154) | (20) | 28 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in inventory | 690 | (1128) | 19 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in trade receivables | 990 | (661) | 35 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other account receivables | (2383) | (81) | 719 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued interest on loans and leases | 13 | 36 | 73 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in deferred taxes |  |  | 16 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in accounts payable | 860 | 448 | 43 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deferred revenues | 1439 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in other accounts payable | 363 | 329 | (25) |
|  | (9431) | (9378) | (1003) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Cash flows from investing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in deposits | 48 | 132 | (192) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiary | (879) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Intangible assets |  |  | (6) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property, plant and equipment | (727) | (412) | (227) |
|  | (1559) | (280) | (425) |
| **Cash flows from financing activities** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of shares and warrants, net | 3894 | 8358 | 8249 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Investment in subsidiary |  |  | (1566) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of options | 208 | 742 | 39 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exercise of warrants | 1379 | 3386 | 98 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lease payments | (337) | (111) | (43) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Long term deposits |  |  | 30 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment of loans | (342) | (316) | (100) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from receipt of loans | 1294 | 296 | 494 |
|  | 6096 | 12355 | 7201 |
| **Increase (decrease) in cash and cash equivalents** | (4894) | 2697 | 5773 |
| Effect of changes in foreign exchange rates | (960) | 376 | (738) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash at beginning of year | 8470 | 5397 | 362 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash at the end of the year | $2616 | $8470 | $5397 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taxes paid during the year | 74 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid during the year | 49 | 34 | 12 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**APPENDIX A: NON-CASH ACTIVITIES** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of warrant liability to warrant reserve | 51 | 43964 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reclassification of other account payables to short term loans | 359 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Recognition of a lease liability and right-of-use asset | 947 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale of fixed asset | 188 |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Issuance of share in respect of Isramat deal | 2089 |  |  |

---

**NON-CASH TRANSACTIONS: INVESTMENT IN NEWLY CONSOLIDATED SUBSIDIARIES**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year ended**<br> **December 31,** | **Year ended**<br> **December 31,** | **Year ended**<br> **December 31,** |
|  | **2022** | **2021** | **2020** |
| Issuance of the Company's ordinary shares | 1747 |  |  |
| Commitment to selling shareholders | 343 |  |  |
| Working capital other than cash and cash equivalents | (869) |  |  |
| Liability for severance pay fund, net | 35 |  |  |
| Property, plant and equipment | (636) |  |  |
| Benefit shareholder consulting agreement | (27) |  |  |
| Customer relations | (284) |  |  |
| &nbsp;&nbsp;&nbsp;Goodwill | (1188) | - | - |
| &nbsp;&nbsp;&nbsp;Total cash and cash equivalents paid (\*) | $(879) | $- | $- |

---

(\*) See note 7.

*The accompanying notes are an integral part of the financial statements.*

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 1 - DESCRIPTION OF BUSINESS:**

**Overview**

A2Z SMART TECHNOLOGIES CORP. (the "Company" or "A2ZST") was incorporated on January 15, 2018 under the laws of British Columbia. The head office is located at 1600 – 609 Granville Street, Vancouver, British Columbia V7Y 1C3, and the records and registered office is located at 2200 HSBC Building 885 West Georgia Street, British Columbia, V6C 3E8.

The Company was listed on the NASDAQ Stock Market LLC ("Nasdaq") starting January 22, 2022, and trades under the symbol "AZ" and on the TSX Venture Exchange ("TSX Venture") and trades under the symbol "AZ.V".

The Company owns 79.49% of the common shares of Cust2Mate Ltd ("Cust2Mate"), a technology company focused on providing retail automation solutions, in particular for large grocery stores and supermarkets. The Company's primary product is the Cust2Mate system which incorporates a "smart cart" which automatically calculates the value of the customers purchases in their smart cart, without having to unload and reload their purchases at a customer checkout point.

The Cust2Mate system offers various features for shoppers and retailers such as product information and location, an on-cart scale to weigh items and automatically calculate costs, bar-code scanner and on-board payment system to bypass checkout lines. In addition, the product includes big data smart algorithms and computer vision capabilities, allowing for customer specific targeted advertising. ("The Cust2Mate Platform").

The Cust2Mate Platform is being rolled out in Israel and is being marketed throughout the world, with pilots in North and South America and in the Middle East.

The Company's other activities include the provision of maintenance services utilizing the application of advanced engineering capabilities to the military and security markets as well as the development of related products for the civilian markets. Such services include providing maintenance services and container leasing. The Company also provides maintenance services for complex electronic systems and products.

On February 3, 2022, the Company completed the acquisition of Isramat Ltd. This strategic acquisition vertically integrates certain manufacturing capabilities for the production of A2Z's Cust2Mate smart cart while complementing existing contract manufacturing partnerships to support anticipated worldwide growth. See also note 6.

The Company, through its 80% owned subsidiary, Advanced Automotive Innovations Inc., ("AAI") continues the development of a product for the automotive market - the FTICS or Fuel Tank Inertia Capsule System which activates automatically in the event of a vehicle collision. This eliminates the danger of fuel tank combustion thereby saving lives and reducing damage.

As of December 31, 2022, the Company had four subsidiaries, all of which are companies incorporated under the laws of Israel: (1) Cust2mate Ltd. ("Cust2mate"); (2) A2Z Advanced Military Solutions Ltd ("A2Z MS"); (3) A2Z Advanced Solutions ("A2Z AS"); and (4) Isramat Ltd, the "Subsidiaries").

The Company had a net loss of approximately $19.3 million for the year ended December 31, 2022, $39.8 million for the year ended December 31, 2021, and $7.2 million for the year ended December 31, 2020. The Company has an accumulated deficit of $67 million as of December 31, 2022. The Company has incurred negative cash from operation and net losses for current and recent years. The Company financed its operation up do date by issuance of shares and warrants, The Company does not have any material financial obligations as of the balance date The company believes that it has sufficient resources to operate in the foreseeable future with the support of its officers.

On March 13, 2023, the Company closed, in escrow, the issuance of 1,783,561 units ("Units") at a price per Unit of US$1.46 (CAD$1.95), for gross proceeds of US$2,604 (See also note 32(b)).

These consolidated financial statements were authorized for issue by the Board of Directors on March 27, 2023.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 2 – BASIS OF PREPARATION:**

**A. Basis of preparation**

The principal accounting policies adopted in the preparation of the financial statements are set out above. These financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board. The financial statements have been prepared under the historical cost convention except for certain derivatives. The Company has elected to present the statement of comprehensive income using the function of expense method.

**B. Basis of consolidation**

Where the Company has control over an investee, it is classified as a subsidiary. The financial statements of the subsidiaries are included in the consolidated financial statements from the date that control commenced until the date control ceases. The Company controls an investee if all three elements are present: power over the investee, exposure to variable returns from the investee, and the ability of the investor to use its power to affect those variable returns. Control is reassessed whenever facts and circumstances indicate that there may be a change in any of these elements of control.

The consolidated financial statements of the Company include the accounts of the Company and its Subsidiaries as if they formed a single entity. Any intercompany transactions were eliminated in full.

**C. Basis of Measurement**

These consolidated financial statements have been prepared on a going concern basis, under the historical cost basis, except for financial instruments which have been measured at fair value.

**D. Functional and foreign currency** 

The Company's functional currency is the New Israeli Shekel ("NIS"), since the Company's primary economic environment is in Israel. However, the presentation currency is in US Dollars ("USD") due to expected future expansion. Transactions and balances in foreign currencies are converted into US Dollars in accordance with the principles set forth by International Accounting Standard (IAS) 21 "The Effects of Changes in Foreign Exchange Rates". Accordingly, transactions and balances have been converted as follows:

● Monetary
 assets and liabilities - at the rate of exchange applicable at the statements of financial position date.

● Exchange
 gains and losses from the aforementioned conversion are recognized in the statement of comprehensive loss.

● Expense
 items - at exchange rates applicable as of the date of recognition of those items.

● Non-monetary
 items are converted at the rate of exchange at the statements of financial position date.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES:**

**A. Cash and cash equivalents**

Cash equivalents are considered by the Company to be highly liquid investments, including, inter alia, short-term deposits with banks, the maturity of which do not exceed three months at the time of deposit, and which are not restricted.

**B. Short term deposits**

A short term deposit is cash held in a short-term deposit (between three months and one year) or in a long-term deposit (with a maturity of more than one year from the date of investment). Short term deposits are deposits designated to secure the Company's car lease agreements and its credit cards.

**C. Loss per share**

Basic loss per share is computed by dividing the net loss available to common shareholders by the weighted average number of shares outstanding during the reporting period. Diluted loss per share is computed similarly to basic loss per share except that the weighted average number of shares outstanding is increased to include additional shares from the assumed exercise of stock options and warrants, if dilutive. The average number of shares is calculated by assuming that outstanding conversions were exercised and that the proceeds from such exercises were used to acquire common shares at the average market price during the reporting period. For the years ended December 31, 2021, and 2020, potentially dilutive common shares issuable upon the exercise of warrants and options were not included in the computation of loss per share because their effect was anti-dilutive.

**D. Provisions** 

Provisions are recognized when the Company has a legal or constructive obligation, as a result of past events, for which it is probable that an outflow of economic benefits will result and that outflow can be reliably measured. Provisions are measured using the best estimate of the amounts required to settle the obligation at the end of the reporting period.

**E. Fair value measurement**

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

1. In
 the principal market for the asset or liability, or

2. In
 the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible to the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**E. Fair value measurement (cont.)**

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

Classification of fair value hierarchy

The financial instruments presented in the statement of financial position at fair value are grouped into classes with similar characteristics using the following fair value hierarchy which is determined based on the source of input used in measuring fair value:

---

| |
|:---|
| Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. |
| Level 2 – Inputs other than quoted prices included within Level 1 that are observable either directly or indirectly. |
| Level 3 – Inputs that are not based on observable market data (valuation techniques which use inputs that are not based on observable market data). |

---

&nbsp;&nbsp;&nbsp;&nbsp;1. Financial
 assets

The Company classifies its financial assets into one of the following categories, based on the business model for managing the financial asset and its contractual cash flow characteristics. The Company's accounting policy for the relevant category is as follows:

Amortized cost: These assets arise principally from the provision of goods and services to customers (e.g. trade accounts receivable), but also incorporate other types of financial assets where the objective is to hold these assets in order to collect contractual cash flows and the contractual cash flows are solely payments of principal and interest. They are initially recognized at fair value plus transaction costs that are directly attributable to their acquisition or issue, and are subsequently carried at amortized cost using the effective interest rate method, less provision for impairment. Impairment provisions for trade accounts receivable are recognized based on the simplified approach within IFRS 9 using a provision in the determination of the lifetime expected credit losses. During this process the probability of the non-payment of the trade receivables is assessed. This probability is then multiplied by the amount of the expected loss arising from default to determine the lifetime expected credit loss for the trade receivables. For trade receivables, which are reported net, such provisions are recorded in a separate provision account with the loss being recognized within general and administrative expenses in the consolidated statement of comprehensive income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the associated provision.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**E. Fair value measurement (cont.):**

&nbsp;&nbsp;&nbsp;&nbsp;2. Financial
 Liabilities

The Company classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired. The Company's accounting policy for each category is as follows:

Fair value through profit or loss: Warrants are initially recognized at fair value net of any transaction costs directly attributable to the issue of the instrument. Such liabilities are subsequently measured at fair value through profit or loss.

Other financial liabilities include the following items: Bank borrowings are initially recognized at fair value net of any transaction costs directly attributable to the issue of the instrument. Such interest-bearing liabilities are subsequently measured at amortized cost using the effective interest rate method, which ensures that any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated statement of financial position. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding. Trade accounts payable and other accounts payable, which are initially recognized at fair value and subsequently carried at amortized cost using the effective interest method.

Another financial liability recognized at fair value is due to a commitment to the selling shareholders of Isramat (See also note 7) that if the aggregate proceeds received by a selling shareholder from the sale of its acquisition shares during the lockup period, together with the value of its unsold acquisition shares as of the end of such period, is lower than its pro rata portion in the equity consideration, the Company will pay the difference in cash to such selling shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;3. Issue
 of a unit of securities:

The issue of a unit of securities involves the allocation of the proceeds received (before issue expenses) to the securities issued in the unit based on the following order: financial derivatives and other financial instruments measured at fair value in each period. Then fair value is determined for financial liabilities that are measured at amortized cost. The proceeds allocated to equity instruments are determined to be the residual amount. Issue costs are allocated to each component pro rata to the amounts determined for each component in the unit.

&nbsp;&nbsp;&nbsp;&nbsp;4. Derivative
 liability - Warrants:

Warrants that are denominated in a currency other than the functional currency of the Company are considered a derivative liability and are classified as financial liabilities at fair value through profit or loss. Accordingly, these warrants are measured at fair value and the changes in fair value in each reporting period are recognized in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;5. Derecognition

● Financial assets - The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the rights to receive the contractual cash flows.

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

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**E. Fair value measurement (cont.):**

&nbsp;&nbsp;&nbsp;&nbsp;6. Impairment
 of financial assets

*ECL and their measurement*

ECL are measured as the unbiased probability-weighted present value of all cash shortfalls over the expected life of each financial asset. For receivables from financial services, ECL are mainly calculated with a statistical model using three major risk parameters: probability of default, loss given default and exposure at default. The estimation of these risk parameters incorporates all available relevant information, not only historical and current loss data, but also reasonable and supportable forward-looking information reflected by the future expectation factors. This information includes macroeconomic factors (e.g., gross domestic product growth, unemployment rate, cost performance index) and forecasts of future economic conditions. For receivables from financial services, these forecasts are performed using a scenario analysis (base case, adverse and optimistic scenarios).

As of December 31, 2022, and December 31, 2021, ECL for trade and other account receivables are not material, and as such are not disclosed, in accordance IFRS 9.

*Definition of default, including reasons for selecting the definition*

Prior to commencing a business relationship, the Company will enter into an agreement with the customer. The agreement or contract typically includes details of the terms of payment to which the customer is entitled. In most cases, the customer updates the Company if there is a delay in the payment beyond the terms of the agreement. Any delays in payment for more than two months are subject to approval of management. If a customer's scheduled payment is delayed by more than two months and such delay is not approved by the Company's management, the CEO will typically make direct contact with the customer's management and inform them of the overdue obligation and that Company will pursue remedies available to collect the overdue payment. If the customer and the Company are not able to resolve the matter at that time, the receivable is considered to be in default as the collectability is no longer certain. If the collection effort is not successful, the Company will retain legal counsel in the applicable country to assist with collection and sends a demand letter to that effect.

*Write-off policy*

The Company writes off its financial assets if any of the following occur:

● Inability to locate the debtor.

● Discharge of the debt in a bankruptcy.

● It is determined that the efforts to collect the debt are no longer cost effective given the size of receivable.

The collections department must comply with the collection efforts outlined in the policy to collect on delinquent customer accounts before any write-offs are made.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**E. Fair value measurement (cont.):**

*Aging Schedule based on due date*

AGING SCHEDULE BASED ON DUE DATE

---

| | | |
|:---|:---|:---|
|  | **Aging schedule** | **Aging schedule** |
|  | **December 31, 2022** | **December 31, 2021** |
| Within payment terms | $**1373** | $857 |
| Total | $**1373** | $857 |

---

*Three-level matrix*

Based on its past experience and historical data along with a consideration of future projections of factors, such as the economic environment, the Company has established a three-level matrix. The three-level matrix contains the following groups and balances:

SCHEDULE OF THREE-LEVEL MATRIX

---

| | | |
|:---|:---|:---|
|  | **December 31, 2022** | **December 31, 2021** |
| Government institutions | $**279** | $296 |
| Industrial customers | **1052** |  |
| Other customers | **42** | 561 |
| Total | $**1373** | $857 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**F. Operating Segment:**

An operating segment is a component of the Company that meets the following three criteria:

&nbsp;&nbsp;&nbsp;&nbsp;1. Is
 engaged in business activities from which it may earn revenues and incur expenses;

2. Whose
 operating results are regularly reviewed by the Company's chief operating decision maker to make decisions about allocated
 resources to the segment and assess its performance; and

3. For
 which separate financial information is available.

Segment revenue and segment costs include items that are attributable to the relevant segments and items that can be allocated to segments. Items that cannot be allocated to segments include the Company's financial income and expenses and income tax. The Company has three operating segments; Precision Metal Parts, Advanced Engineering and Smart Carts.

**G. Share-based compensation:**

Where equity settled share options are awarded to employees and service providers, the fair value of the options calculated at the grant date is based on the market share price and is charged to the statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognized over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. As long as all other vesting conditions are satisfied, a charge is made irrespective of whether the market vesting conditions are satisfied. The cumulative expense charged is not adjusted for failure to achieve a market vesting condition.

**H. Deferred taxes**

Deferred taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities in the financial statements and the amounts attributable for tax purposes. Significant judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the estimated timing and level of future taxable profits together with future tax planning strategies.

Deferred taxes are measured at the tax rates that are expected to apply in the period when the temporary differences are reversed based on tax laws that have been enacted or substantively enacted at the end of the reporting period. Deferred taxes are recognized in Profit or loss, except when they relate to items recognized in other comprehensive income or directly in equity. Deferred tax assets are reviewed at the end of each reporting period and reduced to the extent that it is not probable that they will be utilized. In addition, temporary differences (such as carry forward losses) for which deferred tax assets have not been recognized or reassessed are recognized to the extent that their recoverability is probable. Any resulting reduction or reversal is recognized as "income tax" within the statement of comprehensive income. All deferred tax assets and liabilities are presented in the statement of financial position as non-current items, respectively.

Deferred taxes are offset in the statement of financial position if there is a legally enforceable right to offset a current tax asset against a current tax liability and the deferred taxes relate to the same taxpayer and the same taxation authority.

The current tax liability is measured using the tax rates and tax laws that have been enacted or substantively enacted by the reporting date as well as adjustments required in connection with the tax liability in respect of previous years.

Deferred tax assets in respect to carryforward losses have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the group can utilize the benefits therefrom.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**I. Defined benefit schemes**

The Company contributes towards the state pension in accordance with local legislation where required. The only obligation of the Company is to make the required contributions. Costs related to such contributions are expensed in the period in which they are incurred.

The Company has several employee benefits plans as to its employees:

1. Short-term
 employee benefits: Short-term employee benefits include salaries, paid annual leave, paid sick leave, recreation and social security
 contributions and are recognized as expenses as the services are rendered. A liability in respect of a cash bonus or a profit-sharing
 plan is recognized when the Company has a legal or constructive obligation to make such payment as a result of past service rendered
 by an employee and a reliable estimate of the amount can be made.

2. Post-employment
 benefits: The plans are normally financed by contributions to insurance companies and classified as defined contribution plans or
 as defined benefit plans.

This liability is calculated based on actuary measurement.

Contributions to the defined contribution plan in respect of severance or retirement pay are recognized as an expense simultaneously with receiving the employee's services and no additional provision is required in the financial statements except for the unpaid contribution. The Company also operates for some employees an immaterial defined benefit plan in respect of severance pay pursuant to the Severance Pay Law. The Company presents the accrued severance pay liability net from severance pay fund.

**J. Property, plant and equipment**

Items of property, plant and equipment are initially recognized at cost. Cost includes directly attributable costs and the estimated present value of any future costs of dismantling and removing items. Depreciation is computed by the straight-line method, based on the estimated useful lives of the assets, as follows:

SCHEDULE OF ESTIMATED USEFUL LIVES OF ASSETS

---

| | | |
|:---|:---|:---|
|  | Estimated useful lives | Estimated useful lives |
| Computers and electronic equipment |  | 3 |
| Machines and manufacturing equipment |  | 10 |
| Furniture and equipment |  | 7 |
| Vehicles |  | 6.67 |
| ERP system and R&D expenses |  | 3-6 |
| Leasehold Improvement |  | 10 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**J. Revenue recognition** 

Revenue is recognized based on the five-step model outlined in IFRS 15, Revenue from Contracts with Customers. IFRS 15 sets out a single revenue recognition model, according to which the entity shall recognize revenue in accordance with the said core principle by implementing a five-step model framework:

&nbsp;&nbsp;&nbsp;&nbsp;1. Identify
 the contracts with a customer.

2. Identify
 the performance obligations in the contract.

3. Determine
 the transaction price.

4. Allocate
 the transaction price to the performance obligations in the contract.

5. Recognize
 revenue when the entity satisfies a performance obligation.

i. Revenue
 from services is derived from contracts with customers pursuant to which the Company provides maintenance for various electronic
 systems. Revenues on these contracts are recognized using the straight-line method, based on the period of time passed.

ii. Revenues
 generated in Isramat are recognized from sale of goods in profit or loss at the point in
 time when the control of the goods is transferred to the customer, generally upon delivery
 of the goods to the customer. *Performance obligations and timing of revenue recognition* **  The
 majority of the Company's revenue is derived from selling goods with revenue recognized at a point in time when control of
 the goods has transferred to the customer. This is generally when the goods are delivered to the customer. However, for export sales,
 control might also be transferred when delivered either to the port of departure or port of arrival, depending on the specific terms
 of the contract with a customer. There is limited judgement needed in identifying the point control passes: once physical delivery
 of the products to the agreed location has occurred, the Company no longer has physical possession, usually will have a present right
 to payment (as a single payment on delivery) and retains none of the significant risks and rewards of the goods in question. The
 Company has a segment which carries out maintenance and leasing services for clients, with revenue recognized typically on an over
 time basis. This is because the designs created have no alternative use for the Company and the contracts would require payment to
 be received for the time and effort spent by the Company on progressing the contracts in the event of the customer cancelling the
 contract prior to completion for any reason other than the Company's failure to perform its obligations under the contract.
 On partially complete service contracts, A Layout (International) recognizes revenue based on stage of completion of the project
 which is estimated by comparing the number of hours actually spent on the project with the total number of hours expected to complete
 the project (i.e. an input based method). This is considered a faithful depiction of the transfer of services as the contracts are
 initially priced on the basis of anticipated hours to complete the projects and therefore also represents the amount to which the
 Company would be entitled based on its performance to date. *Determining the transaction price* A
 substantial amount of the Company's revenue is derived from Smart Cart segment – fixed price contracts and therefore
 the amount of revenue to be earned from each contract is determined by reference to those fixed prices. Exceptions are as follows: ● For one key customer, the Company accepts orders and is paid up in advance of delivering the products.

**K. Share based payment transactions**

The Company's employees and other service providers are entitled to remuneration in the form of equity-settled share-based payment.

The cost of equity-settled transactions is recognized in profit or loss together with a corresponding increase in equity during the period which the performance and/or service conditions are to be satisfied ending on the date on which the relevant employees become entitled to the award ("the vesting period"). The cumulative expense recognized for equity-settled transactions at the end of each reporting date includes the Group's best estimate of the number of equity instruments that will ultimately vest.

The cost of equity-settled transactions with employees is measured at the fair value of the equity instruments granted at grant date. The fair value of option granted is determined using the Binomial Lattice option-pricing model ("Binomial model"). The Binomial model takes into account variables such as volatility, dividend yield rate, and risk-free interest rate and also allows for the use of dynamic assumptions and considers the contractual term of the option, the probability that the option will be exercised prior to the end of its contractual life, and the probability of termination or retirement of the option holder in computing the value of the option.

**L. Research and development expenses**

Research expenses are recognized in profit or loss when incurred. An intangible asset arising from a development project or from the development phase of an internal project is recognized if the Company can demonstrate all of the following: the technical feasibility of completing the intangible asset so that it will be available for use or sale; the Company's intention to complete the intangible asset and use or sell it; the Company's ability to use or sell the intangible asset; how the intangible asset will generate future economic benefits; the availability of adequate technical, financial and other resources to complete the intangible asset; and the Company's ability to measure reliably the expenditure attributable to the intangible asset during its development. Through December 31, 2022, costs in the amount of $219 have been capitalized and relate to the Company's ERP system. All other development expenses have not met all the aforementioned criteria and therefore all development costs have been recognized in profit or loss.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**M. Standard not yet effective**

There are a number of standards, amendments to standards, and interpretations which have been issued by the IASB that are effective in future accounting periods that the Company has decided not to adopt early.

The following amendments are effective for the period beginning 1 January 2023:

---

| |
|:---|
| Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2); |
| Definition of Accounting Estimates (Amendments to IAS 8); and |
| Deferred Tax Related to Assets and Liabilities arising from a Single Transaction (Amendments to IAS 12) |

---

The following amendments are effective for the period beginning 1 January 2024:

---

| |
|:---|
| IFRS 16 Leases (Amendment – Liability in a Sale and Leaseback) |
| IAS 1 Presentation of Financial Statements (Amendment – Classification of Liabilities as Current or Non-current) |
| IAS 1 Presentation of Financial Statements (Amendment – Non-current Liabilities with Covenants) |

---

The Company is currently assessing the impact of these new accounting standards and amendments. The Company does not believe that the amendments to IAS 1 will have a significant impact on the classification of its liabilities, as the conversion feature in its convertible debt instruments is classified as an equity instrument and therefore, does not affect the classification of its convertible debt as a non-current liability.

The Company does not expect any other standards issued by the IASB, but not yet effective, to have a material impact on the Company.

**Changes in accounting policies**

The following amendments are effective for the period beginning 1 January 2022:

**Leases**

The majority of the Company's accounting policies for leases are set out in note 12.

*Identifying leases*

 

The Company accounts for a contract as a lease when it conveys the right to use an asset for a period of time in exchange for consideration. Leases are those contracts that satisfy the following criteria:

---

| |
|:---|
| There is an identified asset; |
| The Company obtains substantially all the economic benefits from use of the asset; and |
| The company has the right to direct use of the asset |

---

The Company considers whether the supplier has substantive substitution rights. If the supplier does have those rights, the contract is not identified as giving rise to a lease.

In determining whether the Company obtains substantially all the economic benefits from use of the asset, the Company considers only the economic benefits that arise use of the asset, not those incidental to legal ownership or other potential benefits.

In determining whether the Company has the right to direct use of the asset, the Company considers whether it directs how and for what purpose the asset is used throughout the period of use. If there are no significant decisions to be made because they are pre-determined due to the nature of the asset, the Company considers whether it was involved in the design of the asset in a way that predetermines how and for what purpose the asset will be used throughout the period of use. If the contract or portion of a contract does not satisfy these criteria, the Company applies other applicable IFRSs rather than IFRS 16.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (CONTINUED):**

**IAS - 1 Presentation of Financial Statements**

In January 2020, the IASB issued amendments to IAS 1, which clarify the criteria used to determine whether liabilities are classified as current or non-current. These amendments clarify that current or non-current classification is based on whether an entity has a right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The amendments also clarify that 'settlement' includes the transfer of cash, goods, services, or equity instruments unless the obligation to transfer equity instruments arises from a conversion feature classified as an equity instrument separately from the liability component of a compound financial instrument. The amendments are effective for annual reporting periods beginning on or after January 1, 2022. However, in May 2020, the effective date was deferred to annual reporting periods beginning on or after January 1, 2023.

The Company evaluated the expected impact of the IAS 1 amendments on its financial position as December 31, 2022, as a reclassification of its derivative liability - warrants in the amount of $1,142 from Non – Current Liabilities to Current Liabilities.

**Onerous Contracts** – **Cost of Fulfilling a Contract (Amendments to IAS 37)**

IAS 37 defines an onerous contract as a contract in which the unavoidable costs (costs that the Group has committed to pursuant to the contract) of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

The amendments to IAS 37.68A clarify, that the costs relating directly to the contract consist of both:

● The incremental costs of fulfilling that contract- e.g., direct labor and material; and

● An allocation of other costs that relate directly to fulfilling contracts: e.g. Allocation of depreciation charge on property, plant and equipment used in fulfilling the contract.

The Company, prior to the application of the amendments, did not have any onerous contracts. The Company estimates that the initial application of the Amendments is not expected to have a material impact on its financial statements.

**NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS:**

The areas requiring the use of estimates and critical judgments that may potentially have a significant impact on the Company's earnings and financial position are the useful life of property and equipment and income tax.

**The useful life of property, plant and equipment**

Property and equipment are amortized or depreciated over their useful lives. Useful lives are based on management's estimates of the period that the assets will generate revenue, which are periodically reviewed for continued appropriateness. Changes to estimates can result in significant variations in the amounts charged to the consolidated statement of comprehensive income in specific periods.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 4 - CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED):**

**Intangible assets**

Intangible assets are tested for impairment annually or more frequently if there is an indication of impairment. The carrying value of intangibles with definite lives is reviewed each reporting period to determine whether there is any indication of impairment. If there are indications of impairment the impairment analysis is completed and if the carrying amount of an asset exceeds its recoverable amount, the asset is impaired and impairment loss is recognized.

**Going concern**

In order to assess whether it is appropriate for the company to continue as a going concern, management is required to apply judgment and make estimates with respect to future cash flow projections. In arriving at this judgment, there were several assumptions and estimates involved in calculating these future cash flow projections. This includes making estimates regarding the timing and amounts of future expenditures and the ability and timing to raising additional financing.

**Functional currency**

The Company and its subsidiaries are required to determine their functional currencies based on the primary economic environment in which each entity operates. In order to do that, management has to analyze several factors, including which currency mainly influences the cost of undertaking the business activities, in which currency the entity has received financing, and in which currency it keeps its receipts from operating activities. Management uses its judgment to determine which factors are most important when the above indicators are mixed and the functional currency is not obvious.

**Impairment of non-financial assets**

Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e., the higher of value in use and fair value less costs to sell), the asset is written down accordingly.

Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units ('CGUs'). Goodwill is allocated on initial recognition to each of the Company's CGUs that are expected to benefit from a business combination that gives rise to the goodwill.

Impairment charges are included in profit or loss, except to the extent they reverse gains previously recognized in other comprehensive income. An impairment loss recognized for goodwill is not reversed.

**Goodwill**

Goodwill arising on the acquisition of a subsidiary represents the excess of the cost of acquisition over the Company's interest in the net fair value of the identifiable assets, liabilities and Contingent liabilities of the subsidiary or jointly controlled entity recognized at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.

**Derivative liability - Warrants**

The Company uses the Black-Scholes option-pricing model to estimate fair value at each reporting date. The key assumptions used in the model are the expected future volatility in the price of the Company's shares and the expected life of the warrants.

**Determining the fair value of share-based payment transactions:** 

The fair value of share-based payment transactions is determined upon initial recognition by the Binomial model. The Binomial model is based on share price and exercise price and assumptions regarding expected volatility, term of share option, dividend yield and risk-free interest rate.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 5** - **INVENTORIES:**

SCHEDULE OF INVENTORIES

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Raw materials | $**38** | $93 |
| Smart cart electrical equipment | **-** | 909 |
| Smart cart parts | **337** | 145 |
|  | $**375** | $1147 |

---

**NOTE 6** – **TRADE RCEIVABLES, NET:**

SCHEDULE OF TRADE RECEIVABLES

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Customers | $**1383** | $857 |
| Expected credit losses | **(10)** | - |
|  | $**1373** | $857 |

---

**NOTE 7** – **ACQUISITION**

On February 3, 2022, the Company announced it has completed the acquisition of all the outstanding shares of Isramat Ltd ("Isramat"), an Israeli manufacturer of precision metal parts. In connection with closing of the acquisition, the Company paid NIS 2,800,000 (approximately $879) in cash and issued the selling shareholders of Isramat 273,774 common shares in the capital of the Company at a price per share of $7.6311. The company has committed to the selling shareholders that if the aggregate proceeds received by a selling shareholder from the sale of its acquisition shares during the lockup period, together with the value of its unsold acquisition shares as of the end of such period, is lower than its pro rata portion in the equity consideration, the Company will pay the difference in cash to such selling shareholder. Such payment shall be made at the end of the lockup period after submission of a report by the selling shareholder.

IFRS 13 favors the use of quoted prices and limits the inclusion of restrictions (such as lockup) in the calculated fair value. Based on the provisions of IFRS 13, the Company has recognized a provision for the commitment to the selling shareholders on the day of the acquisition in the amount of $343. On December 31, 2022, the Company revaluated the commitment to the selling shareholders in the amount of $1,447, and finance expenses in the amount of $1,105 were recognized and charged to the Consolidated Statement of Comprehensive Loss.

The table below summarizes the fair value of the commitment at the purchase date:

SUMMARY OF FAIR VALUE OF COMMITMENT

---

| | |
|:---|:---|
| Balance at January 1, 2022 | $- |
| Acquisition date February 3, 2022 | 343 |
| Revaluation | 1190 |
| Effect of changes in foreign exchange rates | (86) |
| Balance at December 31, 2022 | $1447 |

---

The purchase consideration has been allocated between the acquired tangible assets and intangible assets, based on their fair values.

Management is fully responsible for the valuation made of the assets. The fair value assigned to identifiable intangible assets acquired has been determined by using valuation methods that accounts for replacement costs, using estimates and assumptions determined by management.

Based on the above, the Company has initially determined that the purchase price exceeds the fair values of identifiable net assets acquired by approximately $1,188, which is recognized as goodwill.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 7** – **ACQUISITION (CONTINUED)**

The table below summarizes the fair value of assets acquired at the purchase date:

SCHEDULE OF FAIR VALUE OF ASSETS ACQUIRED

---

| | |
|:---|:---|
|  | **February 3, 2022** |
| Working capital other than cash and cash equivalents | $869 |
| Liability for severance pay fund, net | (35) |
| Property, plant and equipment | 636 |
| Benefit shareholder consulting agreement | 27 |
| Customer relations | 284 |
| Goodwill (\*) | 1188 |
| Total consideration paid (\*\*) | $2969 |
| Consideration paid in cash | $879 |
| Commitment to the selling shareholders | 343 |
| Consideration paid in common shares in the capital of the Company | 1747 |
| Total consideration paid (\*\*) | $2969 |

---

---

| | |
|:---|:---|
| (\*) | Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired. The goodwill is attributed to the expected benefits arising from the synergies of the combination of the activities of the Company and acquired company, and to the value of assembled workforce. |

---

Isramat manufactures and sells precision metal parts. Revenue from these sales is recognized when Isramat has delivered the parts to locations specified by its customers and the customers have accepted the parts in accordance with the sales contract.

---

| | |
|:---|:---|
| (\*\*) | Consideration paid in cash for the purchase of Isramat shares was $879, and the balance of the consideration was settled by the issuance of 273,774 common shares in the capital of the Company at a value of $1,747. |

---

The contribution of Isramat's results to the Company's consolidated revenues were $3,958. The contribution of Isramat's results to the Company's consolidated net loss during the year ended December 31, 2022, was a net loss of $875.

The pro forma financial information presented below is for information purposes only, is subject to a number of estimates, assumptions and other uncertainties, and is not indicative of the results of operations that would have been achieved had the transaction taken place at January 1, 2022. The pro forma financial information is as follows:

SCHEDULE OF PRO FORMA INFORMATION

---

| | |
|:---|:---|
|  | **For the year ended**<br> **December 31, 2022** |
|  | (in thousands) |
|  | unaudited |
| Total revenues | $9594 |
| Net loss attributable to the Company | $17635 |

---

**NOTE 8** - **OTHER ACCOUNTS RECEIVABLE:**

SCHEDULE OF OTHER ACCOUNTS RECEIVABLE

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Related parties | $**-** | $126 |
| Advances to suppliers | **918** |  |
| Prepaid expenses | **751** | 50 |
| Government institutions | **151** | 251 |
| Other | **750** | 7 |
|  | $**2570** | $434 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 9** – **INTANGIBLE ASSETS - PATENT, NET:**

---

| | |
|:---|:---|
| **Balance, January 1, 2021** | $**2239** |
| Depreciation | (123) |
| Effect of changes in foreign exchange rates | (25) |
| **Balance, December 31, 2021** | $**2091** |
| Additions | 311 |
| Depreciation | (200) |
| Effect of changes in foreign exchange rates | 5 |
| **Balance, December 31, 2022** | $**2207** |

---

**NOTE 10** - **PROPERTY, PLANT AND EQUIPMENT, NET:**

SCHEDULE OF PROPERTY, PLANT AND EQUIPMENT NET

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Computers and electronic equipment | Machines and manufacturing equipment | Furniture and equipment | Vehicles | ERP system and R&D expenses | Leasehold Improvements | Right of use Asset | Total |
| Cost: |  |  |  |  |  |  |  |  |
| As of January 1, 2022 | $440 | $- | $201 | $968 | $- | $59 | $362 | $2030 |
| Additions | 29 | 174 | 28 | 316 | 223 | 14 |  | 784 |
| Disposals |  |  |  | (380) |  |  |  | (380) |
| &nbsp;&nbsp;&nbsp;Additions from newly acquired subsidiary |  | 2242 | 178 | 34 |  | 367 | 859 | 3681 |
| Translation adjustments | (53) | (208) | (48) | (80) | (4) | (37) | (42) | (472) |
| As of December 31, 2022 | $416 | $2208 | $359 | $858 | 219 | $403 | $1180 | $5642 |
| Accumulated depreciation: |  |  |  |  |  |  |  |  |
| As of January 1, 2022 | $288 | $- | $142 | $368 | $- | $59 | $101 | $958 |
| &nbsp;&nbsp;&nbsp;Additions | 37 | 116 | 16 | 88 | 5 | 3 | 107 | 371 |
| &nbsp;&nbsp;&nbsp;Disposals |  |  |  | (58) |  |  |  | (58) |
| &nbsp;&nbsp;&nbsp;Additions from newly acquired subsidiary |  | 1657 | 158 | 6 |  | 350 | 164 | 2335 |
| Translation adjustments | (35) | (163) | (27) | (47) | - | (36) | (13) | (321) |
| As of December 31, 2022 | $290 | $1610 | $289 | $357 | $5 | $376 | $360 | $3286 |
| Net Book Value: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;As of December 31, 2022 | $126 | $598 | $70 | $501 | 214 | $27 | $820 | $2357 |
| &nbsp;&nbsp;&nbsp;As of December 31, 2021 | $152 | $- | $59 | $600 |  | $- | $261 | $1072 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | Computers and electronic equipment | Furniture and equipment | Vehicles | Leasehold Improvements | Right of use Asset | Total |
| Cost: |  |  |  |  |  |  |
| As of January 1, 2021 | $370 | $139 | $625 | $57 | $40 | $1231 |
| &nbsp;&nbsp;&nbsp;Additions | 52 | 62 | 298 |  | 362 | 774 |
| Translation adjustments | 18 | - | 45 | 2 | (40) | 25 |
| As of December 31, 2021 | $440 | $201 | $968 | $59 | $362 | $2030 |
| Accumulated depreciation: |  |  |  |  |  |  |
| As of January 1, 2021 | $268 | $133 | $294 | $57 | $23 | $775 |
| Additions | 22 | 7 | 92 |  | 101 | 222 |
| Translation adjustments | (2) | 2 | (18) | 2 | (23) | (39) |
| As of December 31, 2021 | $288 | $142 | $368 | $59 | $101 | $958 |
| Net Book Value: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;As of December 31, 2021 | $152 | $59 | $600 | $- | $261 | $1072 |
| &nbsp;&nbsp;&nbsp;As of December 31, 2020 | $102 | $6 | $331 | $- | $17 | $456 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 11 – SHORT TERM LOANS AND CURRENT PORTION OF LONG-TERM LOANS:**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Linked to** | **Interest rate** | **December 31, 2022** | **December 31, 2021** |
| Short term loans | NIS | 3.2%-7.5 | $**1114** | $- |
| Current portion of long-term loans |  |  | **289** | 158 |
|  |  |  | $**1403** | $158 |

---

**NOTE 12 – LEASE LIABILITY:**

The Company has lease contracts for industrial areas and office facilities used in its operations. Leases of industrial areas and office facilities generally have lease terms of between 2 and 5. The Group has several lease contracts that include termination option, which are valid after a minimal lease period. The Group has several lease contracts that include extension options.

Set out below are the carrying amounts of lease liabilities recognized and the movements during the period:

SCHEDULE OF CARRYING AMOUNTS OF LEASE LIABILITIES RECOGNIZED AND MOVEMENTS

---

| | |
|:---|:---|
|  | **Industrial areas and office facilities** |
| **Balance January 1, 2021** | $21 |
| Additions | 362 |
| Disposals | (107) |
| Accumulated interest | 25 |
| Exchange rate differences | (24) |
| **Balance December 31, 2021** | $277 |
| Additions | 859 |
| Disposals | (335) |
| Accumulated interest | 107 |
| Exchange rate differences | (22) |
| **Balance December 31, 2022** | $886 |

---

---

| | | | |
|:---|:---|:---|:---|
|  | **Linked to** | **December 31, 2022** | **December 31, 2021** |
| Long Term leases | NIS | $**886** | $277 |
| Current portion of long-term leases |  | **281** | 126 |
|  |  | $**605** | $151 |

---

**NOTE 13 – DEFERRED REVENUES:**

The Company has invoiced its one major customer in the Smart Cart segment a sum amount of $1,373 for smart carts that as of December 31, 2022, have yet to be delivered. Throughout the year ended December 31, 2022, the balance of deferred revenues has changed each time the Company invoiced the aforementioned customer. The amount has been set off against total revenues and credited to deferred revenues.

**NOTE 14 - OTHER ACCOUNTS PAYABLE:**

SCHEDULE OF OTHER ACCOUNTS PAYABLE

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Employees and government authorities | $**681** | $362 |
| Accrued expenses | **93** | 169 |
| Other | **182** | 568 |
|  | $**956** | $1099 |

---

**NOTE 15 - LONG TERM LOANS:**

SCHEDULE OF LONG TERM LOANS

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Linked to** | **Interest rate** | **December 31, 2022** | **December 31, 2021** |
| Long term loans | NIS | 1.8%-6.1 | $**1385** | $641 |
| Less- Current portion |  |  | **(1044)** | (158) |
|  |  |  | $**341** | $483 |

---

The loans are from leading Israeli financial institutions and bear interest of between 1.8% - 6.1%. $1,044 of the loans are repayable within in one year and $341 are repayable between two to five years.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 16 – SEVERANCE PAYMENT, NET:**

SCHEDULE OF PLAN DEFINED BENEFIT OBLIGATION

&nbsp;&nbsp;&nbsp;&nbsp;**a.** The
 plan liabilities, net:

---

| | | |
|:---|:---|:---|
|  | **Year ended**<br>**December 31, 2022** | **Year ended**<br>**December 31, 2021** |
| **Defined benefit plan:** |  |  |
| Present value of defined benefit obligation | $**394** | $541 |
| Fair value of plan assets | **(361)** | (374) |
| &nbsp;&nbsp;&nbsp;Total | $**33** | $167 |

---

**Changes in the present value of defined benefit obligation:**

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Balance at beginning of year | $**541** | $563 |
| Recognized in statement of comprehensive loss: |  |  |
| Interest cost | **9** | 10 |
| Current service cost | **30** | 39 |
| Currency translation | **(111)** | (71) |
| Recognized in other comprehensive gain : | **(10)** |  |
| Net actuarial gain | **(98)** | - |
| &nbsp;&nbsp;&nbsp;Balance at end of year | $**361** | $541 |

---

SCHEDULE OF FAIR VALUE OF PLAN ASSETS

&nbsp;&nbsp;&nbsp;&nbsp;**b.** The
 movement in the fair value of the plan assets:

---

| | | |
|:---|:---|:---|
|  | **2022** | **2021** |
| Balance at beginning of year | $**(374)** | $(376) |
| Recognized in statement of comprehensive loss: |  |  |
| Expected return | **24** | 28 |
| Recognized in other comprehensive loss /(gain): |  |  |
| Net actuarial loss (gain) | **-** |  |
| Other: |  |  |
| Contributions by employer | **(11)** | (26) |
| &nbsp;&nbsp;&nbsp;Balance at end of year | $**(361)** | $(374) |

---

SCHEDULE OF ASSUMPTIONS UNDERLYING DEFINED BENEFIT PLAN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** The
 principal assumptions underlying the defined benefit plan:

---

| | | |
|:---|:---|:---|
|  | **December 31,<br> 2022** | **December 31,<br> 2021** |
| Discount rate of the plan liability | 2.75% | 2.24% |
| Expected rate of return on plan assets | 2.64% | 2.36% |
| Future salary increases | 3.82% | 3.47% |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 17 – WARRANT LIABILITY:**

&nbsp;&nbsp;&nbsp;&nbsp;a)  **<u>November 2022 Warrants</u>** 

On November 2, 2022, the Company issued an aggregate of 1,489,166 warrants (November 2022 Warrants) as part of a private placement (see also note 19 (s)). The warrants were issued with an exercise price denominated in Canadian Dollars (CAD2.04) rather than the functional currency of the Company – New Israeli Shekels (NIS). The warrants are exercisable for a period of 2 years from the issue date. The Black-Scholes option pricing model was used to measure the warrant liability with the following assumptions: volatility of 110% using the historical prices of the Company, risk-free interest rate of 3.94%, expected life of 2.00 years and share price of CAD1.56.

These warrants were valuated at their fair value at the end of each reporting period and classified as a liability.

SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS

---

| | |
|:---|:---|
| Balance at January 1, 2022 | $- |
| Issuance of November 2022 Warrants | 894 |
| Revaluation at December 31, 2022 | 248 |
| Balance at December 31, 2022 | $1142 |

---

&nbsp;&nbsp;&nbsp;&nbsp;b)  **<u>April and May 2021 Warrants</u>** 

Certain warrants were issued with an exercise price denominated in Canadian Dollars (CAD) rather than the functional currency of the Company – New Israeli Shekels (NIS). These warrants were recorded at their fair value at the end of each reporting period and classified as a derivative liability.

As of June 30, 2021, the warrant liability was $7,093 and the Company recorded a loss on the revaluation of the total warrant liability for the year ended December 31, 2021, of $2,307 in the Consolidated Statement of Comprehensive Loss. The Black-Scholes option pricing model was used to measure the derivative warrant liability with the following assumptions: volatility of 111% using the historical prices of the Company, risk-free interest rate of 0.41%, expected life of 1.79 years and share price of $11.91.

On June 30, 2021, warrant holders owning 583,703 warrants, exercisable at CAD$11.04, and the Company, agreed that the exercise price of CAD$11.04 would be payable in NIS (based on a NIS 2.63 to CAD$1.00 exchange rate) and therefore the Company reclassified the balance of the warrant liability in respect of these warrants, as equity ($6,846). The Company also entered into a foreign currency hedge contract to protect against any negative currency fluctuation against the CAD.

As of August 29, 2021, the warrant liability was $247 and the Company recorded a gain on the revaluation of the total warrant liability for the year ended December 31, 2021, of $124 in the Condensed Consolidated Interim Statement of Comprehensive Loss. The Black-Scholes option pricing model was used to measure the derivative warrant liability with the following assumptions: volatility of 134% using the historical prices of the Company, risk-free interest rate of 0.41%, expected life of 1.62 years and share price of $6.69. As of December 31, 2021, all the April and May 2021 warrants are classified as equity.

The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments:

SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS

---

| | |
|:---|:---|
| Balance at January 1, 2021 | $- |
| Issuance at June 4, 2021 | 4786 |
| Revaluations | 2183 |
| Reclassification to Warrant Reserve | (6969) |
| Balance at December 31, 2021 | $- |
| Balance at December 31, 2022 | $- |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 17 – WARRANT LIABILITY (CONTINUED):**

&nbsp;&nbsp;&nbsp;&nbsp;c)  **<u>November 2020 and December 2020 Warrants</u>** 

Certain warrants issued in November and December 2020 were issued with an exercise price denominated in Canadian Dollars (CAD) rather than the functional currency of the Company – New Israeli Shekels (NIS). These warrants were recorded at their fair value at the end of each reporting period and classified as a derivative liability.

As of March 31, 2021, the warrant liability was $35,175 and the Company recorded a loss on the revaluation of the total warrant liability on March 31, 2021, of $26,816 in the Consolidated Statement of Comprehensive Loss. The Black-Scholes option pricing model was used to measure the derivative warrant liability with the following assumptions: volatility of 79% using the historical prices of the Company, risk-free interest rate of 1.002%, expected life of 4.63 years and share price of $9.30.

On March 31, 2021, warrant holders, owning 5,816,785 warrants, exercisable at CAD$2.70, and the Company, agreed that the exercise price of CAD$2.70 would be payable in New Israeli Shekels (based on a NIS 2.65 to CAD$1.00 exchange rate) and therefore the Company reclassified the balance of the warrant liability in respect of these warrants as equity ($35,065). The Company also entered into a foreign currency hedge contract to protect against any negative currency fluctuation against the CAD. As of December 31, 2021, all the November 2020 and December 2020 warrants are classified as equity.

The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments:

---

| | |
|:---|:---|
| Balance at January 1, 2021 | $8391 |
| Revaluation at March 31, 2021 | 26816 |
| Reclassification to Warrant Reserve | (35207) |
| Balance at December 31, 2021 | $- |
| Balance at December 31, 2022 | $- |

---

&nbsp;&nbsp;&nbsp;&nbsp;d)  **<u>January 2020 Warrants</u>** 

Certain warrants issued in January 2020 were issued with an exercise price denominated in Canadian Dollars (CAD) rather than the functional currency of the Company - New Israeli Shekels (NIS). These warrants were recorded at their fair value at the end of each reporting period and classified as a derivative liability.

On June 30, 2021, warrant holders, owning 220,589 warrants, exercisable at CAD$1.95, and the Company, agreed that the exercise price of CAD$1.95 would be payable in New Israeli Shekels (based on a NIS 2.65 to CAD$1.00 exchange rate) and therefore the Company reclassified the balance of the warrant liability in respect of these warrants as equity ($1,788). The Company also entered into a foreign currency hedge contract to protect against any negative currency fluctuation against the CAD.

As of December 31, 2021, the warrant liability was $51 and the Company recorded a loss on the revaluation of the total warrant liability for the year ended December 31, 2021, of $1,788 in the Consolidated Statement of Comprehensive Loss. The Black-Scholes option pricing model was used to measure the derivative warrant liability with the following assumptions: volatility of 82% using the historical prices of the Company, risk-free interest rate of 0.064%, expected life of 0.08 years and share price of $13.72. As of December 31 ,2021, there are 16,312 warrants classified as a liability.

On January 31, 2022, the remaining January 2020 Warrants expired, and the Company reclassified the warrant liability to equity.

The following is the reconciliation of the fair value that are categorized within Level 3 of the fair value hierarchy in financial instruments:

SCHEDULE OF FAIR VALUE HIERARCHY OF WARRANTS

---

| | |
|:---|:---|
| Balance at January 1, 2021 | $285 |
| Warrants exercised | (342) |
| Revaluations | 1896 |
| Reclassification to Warrant Reserve | $(1788) |
| Balance at December 31, 2021 | 51 |
| Expiry of warrants | (51) |
| Balance at December 31, 2022 | $- |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 18 – LIENS, COMMITMENTS AND PROVISIONS:**

&nbsp;&nbsp;&nbsp;&nbsp;A. The
 Company's Israeli subsidiary's fixed assets (motor vehicles) are secured against bank borrowings.

**NOTE 19 – SHAREHOLDERS' EQUITY (DEFICIT):**

The Company's Authorized share capital is unlimited common shares without par value ("Shares").

As of December 31, 2022, the number of shares issued and outstanding are 30,945,322 (December 31, 2021 – 26,326,488).

On August 13, 2021, the Board and the TSX-V approved a 1-for-3 reverse stock split, (the "Reverse Split"). Consequently, all share numbers, share prices, and exercise prices have been retroactively adjusted in these consolidated financial statements for all periods presented.

A. On
 January 21, 2020, 47,619 options with an exercise price of CAD 0.42 were exercised for gross proceeds of $15 (CAD 20 thousand).

B. On
 January 30, 2020, the Company completed a private placement of 277,779 units (the "Units") at a price of CAD 1.80 per
 Unit for gross proceeds of $377 (CAD 500 thousand) ("January 2020 Private Placement"). Each Unit consists of one share
 and one common share purchase warrant, with each warrant entitling the holder to acquire an additional share of the Company at a
 price of CAD 1.95 until January 30, 2022. All securities issued in connection with the January 2020 Private Placement were subject
 to a hold period expiring May 31, 2020. The fair value of the warrants at issuance were $214 and were recorded as a liability –
 see Note 11.

C. On
 January 30, 2020, the Company issued 30,831 shares as compensation, valued at $50 , for consulting services provided by a consultant.

D. On
 March 18, 2020, 75,000 options with an exercise price of CAD 0.39 were exercised for gross proceeds of $23 (CAD 32 thousand).

E. On
 April 27, 2020, the Company issued 76,701 Shares as compensation, valued at $71 , for consulting services provided by two consultants.

F. During
 July 2020 and August 2020, 182,142 warrants with an exercise price of NIS 2.52 were exercised for gross proceeds of $98 .

G. On
 October 28, 2020, 767 options with an exercise price of CAD 1.14 were exercised for gross proceeds of $1 .

H. On
 November 16, 2020, the Company closed a private placement (the "November 2020 Private Placement") and issued 4,450,153 units at a price of CAD 1.875 per unit for gross proceeds of $6,377 CAD 8,344 . Each unit is comprised of one share and one warrant
 (each, a "November 2020 Warrants"). Each November 2020 Warrant entitles the holder thereof to purchase one additional
 share at a price of CAD 2.70 at any time prior to November 10, 2025. In connection with the November 2020 Private Placement, the Company
 paid finders' fees of $417 .

The fair value of the November 2020 Private Placement Warrants was $3,537 at the issuance date and were recorded as a liability

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 19 – SHAREHOLDERS' EQUITY (DEFICIT) (CONTINUED):**

I. On
 December 29, 2020, the Company closed a private placement (the "December 2020 Private Placement") and issued 1,366,631 units at a price of CAD 1.875 per unit for gross proceeds of $2,000 (CAD 2,562). Each unit is comprised of one share of the Company
 and one warrant (each, a "December 2020 Warrant"). Each December 2020 Warrant entitles the holder thereof to purchase
 one share at a price of CAD 2.70 at any time prior to December 24, 2025. In connection with the December 2020 Private Placement, the
 Company paid finders' fees of $128 , in cash and issued 100,000 finders' warrants ("Finders' Warrants").

All securities issued in connection with the December 2020 Private Placement are subject to a four month and one day hold period expiring on April 25, 2021.

The December 2020 Warrants and Finders' Warrants and have an exercise price of CAD$2.70 and expire on December 24, 2025, and April 25, 2021. The fair value of the December 2020 Warrants was $1,698 and were recorded as a liability – see note 11.

J. On
 December 24, 2020, the Company issued 20,161 shares as compensation, valued at $47 , for consulting services provided by a consultant.

K. During
 the year ended December 31, 2021, the Company issued 2,514,693 shares in respect of 2,629,343 warrants that were exercised. (See
 Note 14(a))

L. On
 June 4, 2021, the Company completed two private placements (collectively, the "Offering"). The Offering resulted in the
 issuance of an aggregate of 1,305,662 units at a price of CAD$8.16 per Unit, for gross proceeds of $8,590 (CAD$10.65 million). Each
 Unit is composed of one common share of the Company and one common share purchase warrant (a "Warrant"). Each Warrant
 entitles the holder thereof to acquire one additional common share of the Company at CAD$11.04 per warrant. 221,100 Warrants expire
 on April 14, 2023, and 1,084,562 Warrants expire on May 28, 2023. A finder's fee of $466 (CAD$578) was paid in connection with
 the Offering.

The fair value of the warrants granted was $4,786 and was initially classified as a liability (see note 12(c)). The Company accounted for the remaining $3,338 as additional paid in capital and share issue expenses.

M. During
 the year ended December 31, 2021, the Company issued 286,223 shares in respect of 286,223 stock options that were exercised. (See Note 15 (b))

N. During
 the year ended December 31, 2022, the Company issued 630,161 shares in respect of 630,161 warrants that were exercised. (See Note 14 (a))

O. On
 February 3, 2022, the Company issued the shareholders of Isramat 273,774 shares in respect
 of the acquisition of Isramat (see Note 6).

P. During
 the year ended December 31, 2022, the Company issued 116,667 shares in respect of 116,667 stock options that were exercised. (See Note 15 (b))

Q. On
 February 11, 2022, the Company issued 74,985 shares to a trustee in respect of a crowd funding
 transaction that was completed in 2019, for which shares were not immediately issued until
 the completion of an Israeli tax ruling which was only finalized in late 2021.

R. During
 the year ended December 31, 2022, the Company issued 545,000 shares in respect of 545,000 RSU's that were exercised. (See Note 15 (c))

S. On
 November 2, 2022, the Company completed a private placement ("November 2022 Private Placement") that resulted in the
 issuance of 2,978,337 units ("Unit"), at a price per unit of $1.35 (CAD$1.86), for gross proceeds of $4,021 . Each Unit
 consists of one common share and one half of one common share purchase warrant. An aggregate of 1,489,169 warrants were issued upon
 final closing which when exercised in accordance with the terms of the warrant certificates, and upon payment of an exercise price
 of $1.5 (CAD$2.04), which will result in the issuance of an additional 1,489,169 common shares ("November 2022 Private Placement
 Warrants"). The warrants are exercisable for a period of 24 months. A finder's fee of $260 (CAD$349,000) was paid and 237,200 November 2022 Private Placement Warrants were issued in connection with the November 2022 Private Placement.

The fair value of the November 2022 Private Placement Warrants granted was $894 and was initially classified as a liability (see note 12(d)). The Company accounted for the remaining $3,127 as additional paid in capital and share issue expenses.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 20 – WARRANTS AND OPTIONS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Warrants**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Warrant
 transactions for the years ended December 31, 2022, and 2021 are as follows:

SCHEDULE OF WARRANTS TRANSACTIONS

---

| | | |
|:---|:---|:---|
|  | **Number** | **Weighted Average** <br> **Exercise Price** |
| **Balance, January 1, 2021** | **7289885** | $1.91 |
| Warrants issued in the April 2021 Private Placement | 221100 |  |
| Warrants issued in the May 2021 Private Placement | 1084562 |  |
| Exercise of warrants | (2629343) |  |
| **Balance, December 31, 2021** | **5966204** | $3.55 |
| Expiration of warrants | (5437) |  |
| Exercise of warrants | (630161) |  |
| Warrants issued in the November 2022 Private Placement | 1726366 |  |
| **Balance, December 31, 2022** | **7056972** | $3.54 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) As
 of December 31, 2022, the Company had outstanding warrants, enabling the holders to acquire common shares as follows:

SCHEDULE OF OUTSTANDING WARRANTS

---

| | | | | |
|:---|:---|:---|:---|:---|
| **December 31, 2022** | **Expiry date** | **Exercise price** | **Exercise price** | **Exercise price (USD)** |
| 2658313 | November 10, 2025 | ILS | 7.1418<sup>(2)</sup> | $2.03 |
| 1366631 | December 24, 2025 | ILS | 7.1418<sup>(2)</sup> | $2.03 |
| 221100 | April 18, 2023 | ILS | 29.025<sup>(3)</sup> | $8.25 |
| 1084562 | May 28, 2023 | ILS | 29.025<sup>(3)</sup> | $8.25 |
| 1726366 | November 8, 2024 | CAD | 2.04 | $1.60 |
| 7056972 |  |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) On
 June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$1.95 would be payable in New Israeli Shekels.
 The exercise price is NIS 5.124 per warrant (see also Note 11).

(2) On
 March 31, 2021, warrant holders and the Company, agreed that the exercise price of CAD$2.70 would be payable in New Israeli Shekels.
 The exercise price is NIS 7.1418 per warrant (see also Note 11).

(3) On
 June 30, 2021, warrant holders and the Company, agreed that the exercise price of CAD$11.04 would be payable in New Israeli Shekels.
 The exercise price is NIS 29.025 per warrant (see also Note 11).

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 20 – WARRANTS AND OPTIONS (CONTINUED):**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a) Warrants (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) On
 December 16, 2021, 1,095,322 warrants with an exercise price of ILS 2.52 were exercised in a cashless mechanism and the warrant holders
 were granted 980,673 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) Stock Options**

Stock option transactions for the years ended December 31, 2022, and 2021 are as follows:

SCHEDULE OF STOCK OPTION TRANSACTIONS

---

| | | | |
|:---|:---|:---|:---|
|  | **Number** | **Weighted Average Exercise Price (CAD)** | **Weighted Average Exercise Price (USD)** |
| **Balance January 1, 2021** | 889523 | $1.62 | $1.27 |
| Options granted | 333377 | 3.00 |  |
| Exercise of options | (286223) | 2.25 |  |
| Expiry of options | (116667) | 3.00 |  |
| **Balance December 31, 2021** | 820010 | $2.10 | $1.78 |
| Exercise of options | (116667) | 2.27 |  |
| Expiry of options | (20000) | 1.5 |  |
| Options granted | 1200000 | 3.67 |  |
| **Balance December 31, 2022** | 1883343 | $3.17 | $2.32 |

---

&nbsp;&nbsp;&nbsp;&nbsp;(i) On
 January 28, 2021, 33,333 stock options were issued to a consultant with an exercise price of CAD$3.00 . The options expire on January
 28, 2025 . The fair value of the options granted was estimated at CAD$90 using the Black-Scholes option pricing model, using the following
 assumptions: Share Price: CAD$2.82 ; Expected option life 4 years; Volatility 209 %; Risk-free interest rate 0.30 %; Dividend yield 0 %.

&nbsp;&nbsp;&nbsp;&nbsp;(ii) On
 January 28, 2021, 116,667 stock options were issued to a consultant with an exercise price of CAD$3.00 . The options expire on December
 31, 2021 . The fair value of the options granted was estimated at CAD$191 using the Black-Scholes option pricing model, using the
 following assumptions: Share Price: CAD$2.82 ; Expected option life 0.92 years; Volatility 173 %; Risk-free interest rate 0.11 %; Dividend
 yield 0 %.

&nbsp;&nbsp;&nbsp;&nbsp;(iii) On
 June 3, 2021, 50,000 stock options were issued to a consultant with an exercise price of CAD$8.40 . The options expire on June 3,
 2026 . The fair value of the options granted was estimated at CAD$445 using the Black-Scholes option pricing model, using the following
 assumptions: Share Price: CAD$9.18 ; Expected option life 5 years; Volatility 191 %; Risk-free interest rate 0.93 %; Dividend yield 0 %.

&nbsp;&nbsp;&nbsp;&nbsp;(iv) On
 August 23, 2021, 116,700 stock options were issued to consultants with an exercise price of CAD$6.00 . The options expire on April
 30, 2022 . The fair value of the options granted was estimated at CAD$242 using the Black-Scholes option pricing model, using the
 following assumptions: Share Price: CAD$6.50 ; Expected option life 0.68 years; Volatility 126 %; Risk-free interest rate 0.19 %; Dividend
 yield 0 %.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 20 – WARRANTS AND OPTIONS (CONTINUED):**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b) Stock Options (continued)**

&nbsp;&nbsp;&nbsp;&nbsp;(v) On
 October 28, 2021, 16,677 stock options were issued to a director with an exercise price of
 CAD$8.00 . The options expire on October 28, 2026 . The fair value of the options granted was
 estimated at CAD$242 using the Black-Scholes option pricing model, using the following assumptions:
 Share Price: CAD$9.37 ; Expected option life 5 years; Volatility 114 %; Risk-free interest
 rate 1.43 %; Dividend yield 0 %.

(vi) On
 August 4, 2022, 900,000 stock options were issued to a director with an exercise price of
 CAD$3.56 . The options expire on August 2, 2032 . The fair value of the options granted was
 estimated at $2,712 using the Black-Scholes option pricing model, using the following assumptions:
 Share Price: CAD$4.12 ; Expected option life 10 years; Volatility 112 %; Risk-free interest
 rate 2.67 %; Dividend yield 0 %.

(vii) On
 August 21, 2022, 300,000 stock options were issued to a consultant with an exercise price
 of CAD$4.00 . The options expire on August 2, 2032 . The fair value of the options granted
 was estimated at $977 using the Black-Scholes option pricing model, using the following assumptions:
 Share Price: CAD$4.00 ; Expected option life 10 years; Volatility 112 %; Risk-free interest
 rate 2.99 %; Dividend yield 0 %.

&nbsp;&nbsp;&nbsp;&nbsp;(viii) As
 at December 31, 2022, the Company had outstanding stock options, enabling the holders to acquire common shares as follows:

SCHEDULE OF OUTSTANDING STOCK OPTIONS

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Outstanding as of December 31, 2022** | **Exercisable as of December 31, 2022** | **Expiry date** | **Exercise price (CAD)** | **Exercise price (USD)** |
| 543333 | 510000 | August 20, 2025 CAD | 1.50 | $1.11 |
| 40000 | 40000 | September 1, 2025 CAD | 2.25 | $1.66 |
| 33333 | 33333 | January 28, 2025 CAD | 3.00 | $2.21 |
| 50000 | 33333 | June 3, 2026 CAD | 8.40 | $6.20 |
| 16677 | 11118 | October 28, 2026 CAD | 8.00 | $5.90 |
| 900000 | 225000 | August 2, 2032 CAD | 3.56 | $2.63 |
| 300000 | 300000 | August 21, 2032 CAD | 4.00 | $2.95 |
| 1883343 | 1152784 |  |  |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;(ix) Share-based
 compensation expense is recognized over the vesting period of options. During the year ended December 31, 2022, share-based compensation
 of $4,868 was recognized and charged to the Consolidated Statement of Comprehensive Loss (December 31, 2021 - $843 , December 31,
 2020 – $800).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c) RSU's**

On August 4, 2022, the Company granted 1,265,000 Restricted Share Units ("RSUs") to directors, officers and advisers, of which 590,000 RSU's are to executives and directors, pursuant to the Company's RSU Plan and in acknowledgment of the Company's management recent success and increased future workload. The RSUs will vest at each recipient's discretion and taking into account personal tax implications and convert into 1,265,000 common shares of no par value in the Company ("Common Shares").

RSU's transactions for the year ended December 31, 2022, and for the year ended December 31, 2021, are as follows:

SCHEDULE OF RSU'S TRANSACTIONS

---

| | |
|:---|:---|
|  | Number |
| Balance, January 1, 2021 | - |
| RSU's granted |  |
| Exercise of RSU's | - |
| Balance, December 31, 2021 |  |
| RSU's granted | 1265000 |
| Exercise of RSU's | (545000) |
| Balance, December 31, 2022 | 720000 |

---

Total exercisable RSU's as at December 31, 2022, are 225,832. During the year ended December 31, 2022, share-based compensation in respect of RSU's of $2,475 was charged to the Consolidated Statement of Comprehensive Loss (December 31, 2021 – $nil, December 31, 2020 – $nil).

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 21 – NON CONTROLLING INTERESTS**

The following Company subsidiaries which have non-controlling interests:

SCHEDULE OF SUBSIDIARIES OF NON-CONTROLLING INTERESTS

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Cust2mate | $(2791) | $(1026) |
| AAI | 394 | 419 |
|  | $(2397) | $(607) |

---

**NOTE 22 – REVENUES:**

**Revenue streams:**

SCHEDULE OF REVENUE FROM SERVICES

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| **Revenues from services:** |  |  |  |
| Revenues from services | $1364 | $1548 | $801 |
| Revenues from leasing | 341 | 387 | 267 |
| **Precision metal parts:** |  |  |  |
| Revenues from sales of precision metal parts | 3958 |  |  |
| **Smart Carts:** |  |  |  |
| Revenues from smart carts project | 3688 | 750 | - |
|  | $9351 | $2685 | $1068 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 23 – COST OF REVENUES:**

SCHEDULE OF COST OF REVENUES

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| Payroll and related expenses | $2383 | $1096 | $493 |
| Subcontractor and outsourced work | 103 | 162 | 65 |
| Materials and components consumed | 4650 | 291 | 90 |
| Depreciation | 131 |  |  |
| Car maintenance | 165 | 373 | 147 |
| Other | 85 | 107 | 58 |
|  | 7517 | 2029 | 853 |

---

**NOTE 24 – RESEARCH AND DEVELOPMENT EXPENSES:**

SCHEDULE OF RESEARCH AND DEVELOPMENT EXPENSES

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| Payroll and related expenses | $867 | $510 | $410 |
| Subcontractor and outsourced work | 3362 | 2477 |  |
| Legal fees | 20 | 99 |  |
| Pilot expenses and other | 212 | 136 | 8 |
|  | 4462 | 3222 | 418 |

---

**NOTE 25 – GENERAL AND ADMINISTRATIVE EXPENSES:**

****

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| Payroll and related | $3990 | $1027 | $579 |
| Professional fees | 2233 | 3417 | 1449 |
| Share-based compensation | 4868 | 842 |  |
| Depreciation and amortization | 420 | 321 | 213 |
| Office maintenance | 437 | 275 | 23 |
| Public company related expenses | 316 | 254 | 59 |
| Rent and related expenses | 126 | 96 | 42 |
| Travel | 150 |  |  |
| Directors & officers' insurance | 267 | 119 |  |
| Doubtful debts | 382 |  |  |
| Other | 410 | 143 | - |
|  | 13599 | 6494 | 2365 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 26** - **LOSS PER SHARE:**

Both the basic and diluted earnings (loss) per share have been calculated using the weighted average number of shares in issue during the relevant financial periods, the weighted average number of equity shares in issue and loss for the period as follows:

SCHEDULE OF LOSS PER SHARE

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| Net loss for the year | $19273 | $39735 | $7222 |
| Weighted average number of ordinary shares | 27681778 | 23340621 | 16758323 |
| Basic and diluted loss per share | $0.70 | $1.70 | $0.43 |

---

**NOTE 27 – FINANCIAL EXPENSES:**

**** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| Bank fees and interest | $136 | $77 | $94 |
| Interest from application of IFRS 16 | 97 | 14 | 13 |
| Revaluation of provision | 1158 | - | - |
|  | 1391 | 91 | 107 |

---

**NOTE 28 – INCOME TAX EXPENSE:**

&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Taxes on income:** 

The combined Canadian federal and provincial statutory income tax rate is 26.5% (2021 and 2020 - 26.5%).

Israeli corporate tax rates are 23% in 2022 (2021 and 2020 – 23%).

**B. Tax reconciliation:**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| Loss before income tax | $(18347) | $(40148) | $(5936) |
| Statutory tax rate | 23% | 23% | 23% |
| Income tax benefit at the statutory tax rate | 4220 | 9234 | 1365 |
| Expenses not recognized for tax purposes | (4220) | (9234) | (876) |
| Recognition/Derecognition of deferred tax assets which were not recognized on prior periods | - | (142) | (506) |
| Income tax expense | - | (142) | (17) |

---

**C. Income tax expense:**

---

| | | | |
|:---|:---|:---|:---|
|  | **Year Ended December 31** | **Year Ended December 31** | **Year Ended December 31** |
|  | **2022** | **2021** | **2020** |
| Current | $- | $- | $10 |
| Prior year taxes |  | 142 |  |
| Deferred taxes, net | - | - | 7 |
| Total | $- | 142 | $17 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 28 – INCOME TAX EXPENSE: (CONTINUED)**

**D. Deferred tax assets:** 

Deferred tax assets have not been recognized in respect of carryforward losses because it is not probable that future taxable profit will be available against which the group can utilize the benefits therefrom.

**NOTE 29- RELATED PARTIES AND SHAREHOLDERS:**

**The following transactions arose with related parties:**

**** 

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | **Year ended December 31, 2022** | |
|  | **Directors Fees** | **Consulting Fees / Salaries** | **Share based awards** | **Total** |<br>**Amounts**<br> **owing by**<br> **(to) as of**<br> **December 31, 2022** |
| Director and CEO | $- | $- | $- | $- | $462 |
| Company controlled by CEO |  | 1224 |  | 1224 | (474) |
| CFO |  | 84 | 160 | 244 |  |
| Directors | 28 | - | 64 | 92 | - |
|  | $28 | $1308 | $224 | $1560 | $(12) |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | **Year ended December 31, 2021** | |
|  | **Directors Fees** | **Consulting Fees / Salaries** | **Share based awards** | **Total** |<br>**Amounts**<br> **owing by**<br> **(to) as of**<br> **December 31, 2021** |
| Director and CEO | $- | $43 | $- | $43 | $183 |
| Company controlled by CEO |  | 958 |  | 958 | (57) |
| CFO |  | 94 | 59 | 153 |  |
| Directors | 31 | - | 11 | 42 | - |
|  | $31 | $1095 | $70 | $1196 | $126 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Year ended December 31, 2020** | **Year ended December 31, 2020** | **Year ended December 31, 2020** | **Year ended December 31, 2020** | |
|  | **Directors Fees** | **Consulting Fees / Salaries** | **Share based awards** | **Total** |<br>**Amounts**<br> **owing by**<br> **(to) as of**<br> **December 31, 2021** |
| Director and CEO | $- | $31 | $- | $31 | $- |
| Company controlled by CEO |  | 594 |  | 594 |  |
| CFO |  | 30 | 27 | 57 |  |
| Directors | 31 | - | 10 | 41 | - |
|  | $31 | $655 | $37 | $723 | $- |

---

The CEO has an agreement with the Company pursuant to which he received a consulting fee of NIS 250,000 per month (approximately $71 per month). In addition, the compensation committee approved a milestone-based bonus of $260 during the year ended December 31, 2022. During the year ended December 31, 2021, the compensation committee approved a milestone-based bonus of up to $500.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 30 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT:**

The Company is exposed to a variety of financial risks, which results from its financing, operating and investing activities. The objective of financial risk management is to contain, where appropriate, exposures in these financial risks to limit any negative impact on the Company's financial performance and position.

The Company's financial instruments are its cash, trade and other receivables, payables, other payables and loans. The main purpose of these financial instruments is to raise finance for the Company's operation. The Company actively measures, monitors and manages its financial risk exposures by various functions pursuant to the segregation of duties and principals. The risks arising from the Company's financial instruments are mainly credit risk and currency risk. The risk rate on loans is fixed. The risk management policies employed by the Company to manage these risks are discussed below.

**NOTE 30 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED):**

**A.** **Credit risk:** 

Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date. The Company closely monitors the activities of its counterparties and controls the access to its intellectual property which enables it to ensure the prompt collection of customers' balances. The Company's main financial assets are cash and cash equivalents as well as other receivables and represent the Company's maximum exposure to credit risk in connection with its financial assets.

Wherever possible and commercially practical the Company holds cash with major financial institutions in Israel. Credit risk arises when a failure by counterparties to discharge their obligations could reduce the amount of future cash inflows from financial assets on hand at the balance sheet date. The Company closely monitors the activities of its counterparties and controls the access to its intellectual property which enables it to ensure the prompt collection of customers' balances.

Although we maintain incident management and disaster response plans, in the event of a major disruption caused by a natural disaster or man-made problem, or outbreaks of pandemic diseases, including COVID-19, we may be unable to continue our operations and may experience system interruptions and reputational harm. Acts of terrorism and other geo-political unrest, including the ongoing conflict in Ukraine, could also cause disruptions in our business or the business of our customers, partners, vendors, or the economy as a whole. All of the aforementioned risks may be further increased if our disaster recovery plans prove to be inadequate.

The Company's main financial assets are cash and cash equivalents and trade accounts receivable as well as marketable securities and represent the Company's maximum exposure to credit risk in connection with its financial assets. Wherever possible and commercially practical the Company holds cash with major financial institutions In Israel.

SCHEDULE OF FINANCIAL ASSET WITH CASH AND TRADE ACCOUNTS RECEIVABLE

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br>**2022** | **December 31,**<br>**2021** |
| Cash and Cash Equivalents | $**2616** | $8470 |
| Deposits | **8** | 60 |
| Trade receivables | **1373** | 857 |
| Other Accounts Receivable | **2570** | 434 |
| **Total** | $**6567** | $9821 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 30 - FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (CONTINUED):**

**B.** **Liquidity risks:** 

Liquidity risk is the risk that arises when the maturity of assets and the maturity of liabilities do not match. An unmatched position potentially enhances profitability, but can also increase the risk of loss. The Company has procedures with the object of minimizing such loss by maintaining sufficient cash and other highly liquid current assets and by having an available adequate amount of committed credit facilities. The following tables detail the Company's remaining contractual maturity for its financial liabilities. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay

SCHEDULE OF LIQUIDITY RISKS

---

| | | | |
|:---|:---|:---|:---|
|  | **Contractual** | **Contractual** | **Contractual** |
|  | **Carrying amounts** | **Within 1 year** | **over 1 year** |
| Trade payables | $2224 | $2224 | $- |
| Other accounts payable | $956 | $956 | $- |
| Loans | $1744 | $1403 | $341 |
| Lease liability | $886 | $281 | $605 |

---

**C.** **Market risks:** 

The Company's' business of maintenance services of various electronic systems is highly competitive and involves a certain degree of risk. The Company's business operations will depend largely upon the outcome of continued sales and services to security establishments and the initiation of sales of their products to the civilian markets.

The Company's Cust2Mate business is new, and the Company is aware of competitors in the market. In addition to the regular management oversight and skills required, success in this segment will require the Company to penetrate the market as rapidly as possible.

As of December 31, 2022, if the Company's functional currency (ILS) had strengthened/ weakened by 5% against the USD, with all other variables held constant, the loss for the year would decrease /increase by approximately $97.

**D.** **Interest rate risks:** 

The Company is exposed to cash flow interest rate risk from long-term borrowings at variable rate. It is currently Company policy that between 50% and 75% of Company borrowings are fixed rate borrowings. This policy is managed centrally. Although the board accepts that this policy neither protects the Company entirely from the risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest payments, it considers that it achieves an appropriate balance of exposure to these risks.

During 2022 and 2021, the Company's borrowings at variable rate were denominated in NIS.

The Company analyses the interest rate exposure on a quarterly basis. A sensitivity analysis is performed by applying a simulation technique to the liabilities that represent major interest-bearing positions. Various scenarios are run taking into consideration refinancing, renewal of the existing positions, alternative financing, and hedging. Based on the simulations performed, the impact on profit and loss and net assets of a 100 basis point shift (being the maximum reasonable expectation of changes in interest rates) would be approximately $100.

**E.** **Capital management** 

The Company considers its capital to be comprised of shareholders' equity. The Company's objectives in managing its capital are to maintain its ability to continue as a going concern and to further develop its business. To effectively manage the Company's capital requirements, the Company has a planning and budgeting process in place to meet its strategic goals. In order to facilitate the management of its capital requirements, the Company prepares expenditure budgets that are updated as necessary depending on various factors, including successful capital deployment and general industry conditions. Management reviews the capital structure on a regular basis to ensure the above objectives are met. There have been no changes to the Company's approach to capital management during the year ended December 31, 2022. There are no externally imposed restrictions on the Company's capital.

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 31 – OPERATING SEGMENTS:**

The Company and its subsidiaries are engaged in the following three segments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Maintenance
 services to the military utilizing the application of advanced engineering capabilities as well as development of related products
 for the civilian and retail markets. ("Advanced Engineering")

b. Retail
 automation solutions – Smart Carts ("Smart Carts")

c. Manufacturing
 and selling of precision metal parts – "Precision Metal Parts"

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** | **Year Ended December 31, 2022** |
|  | Precision Metal Parts | Advanced Engineering | Smart Carts (\*) | **Total (\*\*)** |
| Revenues |  |  |  |  |
| External | $3958 | $1705 | $3688 | $9351 |
| Total | 3958 | 1705 | 3688 | 9351 |
| Segment operational loss (gain) | 761 | (60) | 16001 | 16702 |
| Loss on revaluation of warrant liability |  |  |  | 254 |
| Finance expense, net |  |  |  | 1391 |
| Tax expenses |  |  |  | - |
| Loss |  |  |  | $18347 |

---

---

| | |
|:---|:---|
| (\*) | All revenues from the smart cart segment are generated from one customer, which is the main customer of the Company, and accounts for 40% of the Company's revenues for the year ended December 31, 2022. Revenues from the precision metal parts and advanced engineering segments are generated from dozens of customers, which do not represent more than 10% of the total sales of the Company. |
| (\*\*) | All revenues are generated in the state of Israel. |
| (\*\*) | All non-current assets are located in the state of Israel. |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** | **Year Ended December 31, 2021** |
|  | Precision Metal Parts | Advanced Engineering | Smart Carts (\*) | **Total (\*\*)** |
| Revenues |  |  |  |  |
| External | $- | $1935 | $750 | $2685 |
| Total | - | 1935 | 750 | 2685 |
| Segment operational loss | - | 1034 | 8128 | 9162 |
| Loss on revaluation of warrant liability |  |  |  | 30895 |
| Finance expense, net |  |  |  | 91 |
| Tax expenses |  |  |  | 142 |
| Loss |  |  |  | $40290 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended December 31, 2020** | **Year Ended December 31, 2020** | **Year Ended December 31, 2020** | **Year Ended December 31, 2020** |
|  | Precision Metal Parts | Advanced Engineering | Smart Carts (\*) | **Total (\*\*)** |
| Revenues |  |  |  |  |
| External | $- | $1068 | $- | $1068 |
| Total | - | 1068 | - | 1068 |
| Segment operational loss | - | 2510 | 166 | 2676 |
| Loss on revaluation of warrant liability |  |  |  | 3228 |
| Finance expense, net |  |  |  | 32 |
| Tax expenses |  |  |  | 17 |
| Loss |  |  |  | $5953 |

---

**A2Z SMART TECHNOLOGIES CORP.**

**NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS**

**(Expressed in Thousands of US Dollars, except per share data)**

**NOTE 31 – OPERATING SEGMENTS (CONTINUED):**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As at December 31, 2022** | **As at December 31, 2022** | **As at December 31, 2022** | **As at December 31, 2022** | **As at December 31, 2022** |
|  | Precision Metal Parts | Advanced Engineering | Smart Carts | Adjustment & Elimination | Total |
| Segment assets | $2741 | $1162 | $8791 | $- | $12694 |
| Segment liabilities | $3575 | $1043 | $5187 | $- | $9805 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **As at December 31, 2021** | **As at December 31, 2021** | **As at December 31, 2021** | **As at December 31, 2021** | **As at December 31, 2021** |
|  | Precision Metal Parts | Advanced Engineering | Smart Carts | Adjustment & Elimination | Total |
| Segment assets | $- | $1707 | $12424 | $- | $14131 |
| Segment liabilities | $&nbsp;&nbsp;&nbsp;&nbsp; - | $1786 | $1438 | $- | $3224 |

---

**NOTE 32 – SUBSEQUENT EVENTS:**

&nbsp;&nbsp;&nbsp;&nbsp;a. On
 January 4, 2023, the Company granted 1,027,000 Restricted Share Units ("RSUs")
 to directors, officers and advisers, of which 250,000 RSU's are to executives and directors,
 pursuant to the Company's RSU Plan and in acknowledgment of the Company's management
 recent success and increased future workload. The RSUs vest at each recipient's discretion
 and taking into account personal tax implications and convert into 1,027,000 shares. The
 Company also granted 816,500 stock options to s directors, officers and advisers at an exercise
 price of CAD$1.65 . 800,000 Options vest immediately, and the remainder in eight equal installments
 every 3 months with the first installment on April 4, 2023. The options are exercisable for
 a period of 10 years from the date of issue.

b. On
 March 13, 2023, the Company announced that it has closed, in escrow, the issuance of 1,783,561 units ()"**Units** ")
 at a price per Unit of US$1.46 (CAD$1.95), for gross proceeds of US$2,604,000 . Each Unit consists of one common share and one half
 of one common share purchase warrant (each whole such warrant a "**Warrant** "). An aggregate of 891,778 Warrants will
 be issued upon final closing which when exercised in accordance with the terms of the warrant certificates, and upon payment of an
 exercise price of CAD$2.35 (US$1.75), will result in the issuance of an additional 891,778 common shares (March 2023 Private Placement
 Warrants"). A finder's fee of $208 (CAD$290,000) is to be paid in respect of the closing, and 142,685 March 2023 Private
 Placement Warrants were issued in connection with the March 2023 Private Placement.

## Exhibit 1.1

**Exhibit 1.1**

![](ex1-1_001.jpg)

![](ex1-1_002.jpg)

![](ex1-1_003.jpg)

![](ex1-1_004.jpg)

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![](ex1-1_014.jpg)

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## Exhibit 1.2

**Exhibit 1.2**![](ex1-3_001.jpg)

## Exhibit 1.3

**Exhibit 1.3**![](ex1-4_001.jpg)

## Exhibit 2.1

**Exhibit 2.1**

![](ex2-1_001.jpg)

![](ex2-1_002.jpg)

## Exhibit 2.2

**Exhibit 2.2**

**DESCRIPTION OF SECURITIES REGISTERED UNDER SECTION 12 OF THE EXCHANGE ACT**

A2Z Smart Technologies Corp. (the "Company") has the following securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934 (the "Exchange Act"):

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading symbol** | **Name of each exchange on which registered** |
| Common Shares | AZ | The Nasdaq Stock Market LLC |

---

This exhibit contains a description of the rights of the holders of the Company's common shares. The following summary is subject to and qualified in its entirety by the Company's articles (the "Articles") and by applicable British Columbia and Canadian law, particularly the *Business Corporations Act* (British Columbia) (the "BCBCA"). This is not a summary of all the significant provisions of the Articles or of British Columbia or Canadian law and does not purport to be complete. Capitalized terms used but not defined herein have the meanings given to them in the Company's annual report on Form 20-F to which this description of securities registered under section 12 of the Exchange Act (the "Description of Securities") is an exhibit.

**Item 9. General**

**Item 9. A.3 Pre-emptive rights**

The Articles permit the issuance of an unlimited number of common shares, and holders of common shares have no pre-emptive or conversion or exchange rights or other subscription rights in connection with such further issuances.

**Item 9. A.5 Type and class of securities**

The Company is authorized to issue an unlimited number of common shares, no par value. The Company is authorized to issue preferred shares in one or more series.

A transfer of a share of the Company must not be registered unless the Company or the transfer agent or registrar for the class or series of share to be transferred has received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a
 duly signed instrument of transfer in respect of the share;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if
 a share certificate has been issued by the Company in respect of the share to be transferred,
 that share certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if
 a non-transferable written acknowledgement of the shareholder's right to obtain a share
 certificate has been issued by the Company in respect of the share to be transferred, that
 acknowledgement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) such
 other evidence, if any, as the Company or the transfer agent or registrar for the class or
 series of share to be transferred may require to prove the title of the transferor or the
 transferor's right to transfer the share, the due signing of the of instrument of transfer
 and the right of the transferee to have the transfer registered.

**Item 9. A.6 Limitations or qualifications**

Not applicable.

**Item 9. A.7 Other rights**

Not applicable.

**Item 10. B Memorandum and articles of association**

**Item 10. B.3 Shareholder rights**

***Dividends***

Subject to the rights of the registered holders of any preferred shares, the registered holders of the Company's common shares are entitled to receive dividends, if and when declared by the directors, out of any or all profits or surplus of the Company properly available for the payment of dividends. The board of directors may at any time declare and authorize the payment of such dividends exclusively on the common shares.

***Voting Rights***

 ****

The registered holders of the common shares shall be entitled to receive notice of and to attend all general meetings of the shareholders of the Company and shall have the right to vote, either in person or by proxy, at any such meeting on the basis of one vote for each common share held.

Subject to any rights as may be attached to any series of preferred shares, the registered holders of the preferred shares will not be entitled to receive notice of, nor to attend or vote at any general meetings of shareholders of the Company and shall not have any voting rights except to receive notice of, attend and vote at class meetings of the holders of the preferred shares or as required or provided by the BCBCA.

Directors are elected or reappointed at each annual general meeting.

***Rights Upon Dissolution or Liquidation***

Subject to the rights of the registered holders of the preferred shares, in the event of the liquidation, dissolution or winding-up or other distribution of the assets of the Company among its shareholders for the purpose of winding up the affairs of the Company, whether voluntary or involuntary, the registered holders of the Company's common shares are entitled to share, pari passu, on a share for share basis, in the distribution of the remaining property or assets of the Company.

Subject to any rights as may be attached to any series of preferred shares, in the event of the liquidation, dissolution or winding-up of the Company or other distribution of the assets of the Company among its shareholders for the purpose of winding up the affairs of the Company, whether voluntary or involuntary, each holder of a preferred share shall be entitled to be paid, in respect of each such share held and in preference to and priority over any distribution or payment on any share of any other class of shares, the amount paid up with respect to each preferred share held by them. After payment to the holders of the preferred shares of the amounts so payable to them, they shall not, as such, be entitled to share in any further distribution of the property or assets of the Company, except as specifically provided in the special rights and restrictions attached to any particular series.

***Redemption or Sinking Fund Provisions***

There are no redemption or sinking or purchase fund provisions applicable to the Company's common shares.

***Liability to Future Capital Calls***

There is no provision in the Articles requiring holders of common shares to contribute additional capital.

**Item 10. B.4 Changes to shareholder rights**

***Alteration of Authorized Share Structure***

 ****

Subject to the Articles and the BCBCA, the Company may by directors' resolution:

 ****

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) create
 one or more classes or series of shares or, if none of the shares of a class or series of shares are allotted or issued, eliminate
 that class or series of shares;

(2) increase,
 reduce or eliminate the maximum number of shares that the Company is authorized to issue out of any class or series of shares or
 establish a maximum number of shares that the Company is authorized to issue out of any class or series of shares for which no maximum
 is established;

(3) subdivide
 or consolidate all or any of its unissued, or fully paid issued, shares;

(4) if
 the Company is authorized to issue shares of a class of shares with par value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) decrease
 the par value of those shares; or

(b) if
 none of the shares of that class of shares are allotted or issued, increase the par value of those shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) change
 all or any of its unissued, or fully paid issued, shares with par value into shares without par value or any of its unissued shares
 without par value into shares with par value;

(6) alter
 the identifying name of any of its shares; or

(7) otherwise
 alter its shares or authorized share structure when required or permitted to do so by the BCBCA;

and, if applicable, alter its Articles and, if applicable, its Articles, accordingly.

***Alteration of the Articles***

If the Company's Articles and the BCBCA do not specify the type of resolution, then the Company can alter its Articles by special resolution.

 ****

**Item 10. B.6 Limitations**

There is no limitation imposed by Canadian law or by the Articles on the right of a non-resident to hold or vote the Company's subordinate voting shares.

**Item 10. B.7 Change in control**

The Articles do not contain any change of control limitations with respect to a merger, acquisition or corporate restructuring that involves the Company.

**Item 10. B.8 Disclosure of shareholdings**

Although applicable securities laws regarding shareholder ownership by certain persons require disclosure, the Articles do not provide for any ownership threshold above which shareholder ownership must be disclosed.

**Item 10. B.9 Differences in the law**

Not applicable.

**Item 10. B.10 Changes in capital**

The requirements imposed by the Articles governing changes in capital are not more stringent than is required by law.

**Item 12. A Debt Securities**

Not applicable.

**Item 12. B Warrants and Rights**

Not applicable.

**Item 12. C Other Securities**

Not applicable.

**Item 12. D American Depositary Shares**

Not applicable.

## Exhibit 4.1

**Exhibit 4.1**

TRANSLATION FROM HEBREW

**<u>Certain identified information has been excluded from this exhibit because it is the type that the registrant treats as private or confidential.</u>**

**<u>Advance Transfer Agreement</u>**

Executed on November 10, 2022

**Between: M. Yohananoff & Sons (1988) Ltd.** 

Co. No. 511344186

(Hereinafter: "**Yohananoff**")

**<u>On the 1<sup>st</sup> hand;</u>**

**And between Cust2mate Ltd.**

Co. No. 515021202

(Hereinafter: "**Cust2mate** ")

**<u>On the 2<sup>nd</sup> hand</u>**

---

| | |
|:---|:---|
| WHEREAS | Cust2mate is a company that develops and manufactures smart shopping carts (hereinafter: the "**Carts**"); |
| WHEREAS | Yohananoff has ordered from Cust2mate 1,000 2nd generation carts (the "**Total Order**"), according to technical specifications as agreed, and in exchange for NIS [________] per cart; |
| WHEREAS | the parties have agreed that the total order will be delivered to Yohananoff in instalments, according to the order, and from the total order Cust2mate has delivered, prior to the date of execution of this agreement, 185 Carts in exchange for the amount of NIS [________] paid by Yohananoff in accordance with the down payment agreement dated May 3, 2022, as well as additional Carts which have not yet been paid for, payment for which will be made by way of the advances as defined below. |
| WHEREAS | the parties are negotiating an agreement that will regulate, inter alia, the services to be provided by Cust2mate at the time of supply of the Carts (including the Cust2mate warranty) and after the supply of the Carts, expected to be signed in the near future (the "**Services Agreement**"); |

---

TRANSLATION FROM HEBREW

---

| | |
|:---|:---|
| WHEREAS | the parties have agreed that Yohananoff will at this stage provide a down payment for ordering an additional portion of [________] Carts (which Cust2mate has already begun to deliver prior to the time of signing this agreement - for a total of [________] Carts), costing a total of NIS [________], plus VAT, against tax invoice (hereinafter: the "**Advance**" and the "**Advance Carts**"), which will be provided up to and no later than December 31, 2022, and that as soon as [________]carts are delivered, Yohananoff will give additional identical advance payments until paying the consideration for the total order as stated in this agreement below; |
| WHEREAS | the parties wish to arrange in writing the terms of receipt of the down payment; |

---

**<u>Therefore, it was declared, conditioned,</u>**

**<u>and agreed upon between the parties as follows:</u>**

**1.**  **<u>Introduction</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;1.1. The
 preamble to this Agreement and its appendices form an integral part thereof.

1.2. The
 section titles in this Agreement are for convenience and reference only and are not intended to be used to interpret the Agreement.

1.3. This
 Agreement supersedes any prior obligation or claim between the parties in connection with the payment schedule for the total order.

**2.**  **<u>The party's representations and undertakings</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 parties declare that there is no impediment by agreement or by any law to their engagement in this agreement and for the fulfillment
 of all their obligations under it.

**3.**  **<u>Offsetting the Advances or its Reimbursement, Additional Advances</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;3.1. The
 amount of the Advance was calculated as follows: [________] carts X NIS[________] = NIS[________] minus NIS[________] paid in the
 original Advance. Yohananoff will pay the Advance immediately after signing this Agreement.

3.2. On
 supply of the Advance Carts by Cust2mate, the total down payment, in whole or in part, will be immediately offset from the total
 consideration due to Cust2mate from Yohananoff for the total order.

TRANSLATION FROM HEBREW

&nbsp;&nbsp;&nbsp;&nbsp;3.3. Insofar
 as Cust2mate will not provide Yohananoff with the Advance Carts in accordance with the specifications agreed between the parties,
 as stated above, until December 31, 2022, and provided that Yohananoff is able to receive the carts (whether in the branches or anywhere
 else where Yohananoff will ask to store the Carts), Cust2mate will repay Yohananoff the Advance immediately.

3.4. Upon
 delivery of the Advance Carts, Yohananoff will pay an additional Advance of NIS [________] only, plus VAT, against a tax invoice
 for an additional [________]smart carts, i.e., a total of [________] carts (the "**Second Advance Carts** "), which
 will be supplied as stated in the introduction to this agreement, up to and no later than 75 days after the payment of the Advance.
 If Cust2mate will not supply Yohananoff with the additional Carts until the end of the said period, provided that Yohananoff is able
 to receive the Carts (whether in the branches or in any other place where Yohananoff will ask to store the Carts), Cust2mate will
 repay Yohananoff the Advance immediately.

3.5. Upon
 delivery of the Second Advance Carts, Yohananoff will pay an additional down payment of NIS [________] only, plus VAT, against a
 tax invoice for an additional [________] Carts i.e., a total of [________] Carts (the "**Third Advance Carts** "),
 which will be supplied as stated in the introduction to this agreement, up to and no later than 75 days after the payment of the
 Advance. If Cust2mate will not supply Yohananoff with the additional Carts until the end of the said period, provided that Yohananoff
 is able to receive of the Carts (whether in the branches or in any other place where Yohananoff will ask to store the Carts), Cust2mate
 will repay Yohananoff the Advance immediately.

3.6. Upon
 delivery of the Third Advance Carts, Yohananoff will pay an additional down payment of NIS [________] only, plus VAT, against a tax
 invoice for an additional [________] Carts, i.e., a total of 1,000 carts (the "**Fourth Advance Carts** "), which will
 be supplied as stated in the introduction to this agreement, up to and no later than 45 days after the payment of the down payment.
 If Cust2mate will not supply Yohananoff with the additional carts until the end of the said period, provided that Yohananoff is able
 to receive the carts (whether in the branches or in any other place where Yohananoff will ask to store the Carts), Cust2mate will
 repay Yohananoff the Advance immediately.

3.7. Upon
 delivery of the full and total order, the last and final total of NIS[________] will be paid.

3.8. In
 accordance with the foregoing, Yohananoff will pay a total of NIS [________] + VAT against the supply of 1,000 smart carts.

TRANSLATION FROM HEBREW

**4.**  **<u>Miscellaneous</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;4.1. Each
 party to this Agreement shall bear the taxes and regulatory obligations applicable to it.

4.2. No
 waiver, forgiveness, discount, avoidance of action, or extension by any of the parties to this Agreement shall be deemed a waiver
 or absolution on their part of any of their rights under this Agreement. Unless made explicitly and in writing.

4.3. Any
 notice sent by registered mail by one of the parties to the other, according to the addresses indicated in the preamble to this Agreement,
 shall be deemed accepted by the other party after 72 hours from the time it was sent as aforesaid, and if delivered by hand - at
 the time of its delivery.

**And to witness, the parties came as signatories:**

    <br> Cust2mate Ltd. M. Yohananoff & Sons (1988) Ltd.

## Exhibit 4.2

**Exhibit 4.2**

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

**<u>Certain identified information has been excluded from this exhibit because it is the type that the registrant treats as private or confidential.</u>**

**Service Support & Maintenance**

**CUST2MATE**

**For Yohananoff Chain**

**Smart cart system**

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

Summary

Further to the order by M. Yohananof & Sons chain (1988) Ltd (Hereinafter: the "**Customer**" or the "**Chain**" or "**Yohananoff**") of a thousand smart carts from "CUST2MATE" (hereinafter: "**CUST2MATE**" or the "**Company**") for the amount per smart cart of NIS [________] per cart, in accordance with the distribution and delivery times agreed upon between the parties.

In order to provide support to the smart carts purchased by Yohananoff so that Yohananoff's customers can use them to the fullest in the Chain's branches, the Company will provide service and maintenance to Yohananoff attending to software and hardware of the "smart cart system".

"**Smart Cart System**" The "unique" system developed by the Company which includes hardware and software elements.

The Smart Cart System is based on communications/electrical infrastructure at the customer's site (branch/store) that are not included in this service agreement and are fully under the Customer's responsibility.

Service Description:

This document details the hardware and software maintenance service for the "smart cart" product by the Company or another party acting on its behalf (provided this does not detract from the Company's responsibility for providing services under this agreement).

The service organization will include a digital service center, technical support for software, technician service for the supply/collection of carts from the warehouse at the chain's central branch, and laboratory service.

Responding to and servicing the chain's reports:

Level 1

<u>Definition:</u>

● The support service's initial support system, to which issues and questions related to software and hardware will be reported.

<u>Method of reporting:</u>

● A digital contact form in the support software or a text message.

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

<u>Report response settings:</u>

● Within [ ________ ] hours of receiving the report (within the framework of the service time window defined below), a representative of CUST2MATE will begin examining and servicing a low-priority report.

● In cases where the service representative notices a high-priority malfunction or Yohananoff reports the malfunction as a high-priority malfunction (in accordance with the definitions below), the servicing of the malfunction will begin within [ ________ ] and will update other parties (managers, in the event of a hardware malfunction the manager of the technicians' team will be updated) regarding the malfunction.

<u>The process of servicing a report:</u>

● Every call/service will be recorded in the service system.

● In low-priority cases:

 The request must be dealt with by connecting the support representative to the Customer's system and only after receiving confirmation of this from the Customer to verify the reported problem.

● The service representative will diagnose the problem, including its business impact, its urgency, and whether the problem is recurring.

● High-priority malfunctions – frequent malfunctions must pass escalation.

<u>Defining a report type:</u>

● A low-priority report - a malfunction of up to [ ________ ] of the smart strollers in the relevant branch of the chain.

● High-priority report – a malfunction of [ ________ ] or more of the CUST2MATE system at the relevant branch of the chain, servicing an urgent request will be continuous until a solution is found.

<u>Support Level SAL-1:</u>

● Low-priority report - service starting time - up to [ ________ ] hours after the report was registered in the system. SLA calculation is carried out within the service time window.

● High-priority report – approximate service starting time up to [ ________ ]. SLA calculation is carried out within the service time window.

<u>Service time:</u>

● Service time window:

Support services, Sundays to Thursdays, from [________] to [________]. Fridays or holidays eve - [________] to [________].

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

<u>2<sup>nd</sup> Level support services</u>

<u>Definition:</u>

● The next level of support after level 1 is a more technical one. This team's main responsibility - dealing with malfunctions which are still unresolved or are not under level 1 authority.

Responding to the incidents at a high technical level, and when it is not possible, all the necessary technical information will be collected and transferred to level 3 for assistance in finding the solution or for further probing.

<u>Responsibilities:</u>

● Provide solutions (workarounds or final fixes) to known issues.

● Description/solution of the problem: information about the symptoms, frequency of occurrence, collection of LOG files, databases, system configuration files, and full error details.

● Reproducing the problem within the testing system.

● Checks for system changes such as updates, configurations, and add-ons or replacing recently changed system components that may be the source of the problem.

● Updating the service status to level 1.

● Documentation of the reproducing steps/problem script.

● Knowledge base management: problems/solutions.

● Distribution of revised versions

● If service is the responsibility of a third party or another team in the chain of service, all the required information will be transferred with full documentation  **<u>and follow-up to a complete solution</u>** .

● If no solution is found, a transfer will be made to Level 3 service with full documentation and all the required information, including opening a report in the problem management system advising Level 3.

● After testing and receiving a Level 3 answer - documenting the solution in a ticketing system, adding a solution to the knowledge base, and updating the Customer in conversation or in writing about the results of the service – source, and solution.

● As well as updating the Customer regarding any other reasonable solution required for using a smart cart.

● Support and maintenance services

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

<u>Support Level SAL-2:</u>

● Low-priority report - service starting time - up to [ ________ ] hours after the report was registered in a level 1 team in the system. SLA calculation is carried out within the service time window.

● High-priority report – approximate service starting time up to [ ________ ]. SLA calculation is carried out within the service time window. The time of the disabling malfunction is calculated together with level 1 time – As a Total.

<u>Service time:</u>

● Standard Service time:

 All customers with a regular service agreement are entitled to receive support services, Sundays to Thursdays, from [ ________ ] to [ ________ ]. Fridays or holidays eve - [ ________ ] to [ ________ ].

<u>Service Technicians and laboratory:</u>

<u>Definition</u>:

Product Support for "Smart Cart" solution - repair of hardware components in the customer's environment and laboratory.

<u>Hardware Service</u>

● All hardware products/components listed in this document, including computers.

● The process of handling the collection and delivery of a cart in the event of a hardware failure.

● The repairs will be carried out in the warehouse at the central branch of the Yohananoff chain.

● Cooperation in complex malfunctions when servicing requires the involvement of several parties - such as the communications provider/the customer's IT infrastructure personnel - and third parties.

● Proactive work of a technician in the field - going through all the carts in the store and identifying problems that the customer did not report.

<u>Technicians and Laboratory Level service:</u>

● Low-priority report - replacing a smart cart in a warehouse at the central branch of the Yohananoff chain - Up to [ ________ ] business days.

● Urgent priority report – will be serviced [ ________ ][ ________ ].

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

<u>The service time for technicians and laboratory:</u>

● Sundays to Thursdays, from [ ________ ] to [ ________ ]

<u>Service Protocol:</u>

● Upon receipt of a service call, the arrival time will be coordinated with the branch to carry out a repair or a replacement of the cart (at the discretion of a technician).

● <u>The malfunctioning</u> "smart cart" will be collected (in accordance with the "cart collecting" procedure to be determined) from the branch and replaced on the spot with a <u>fully functioning</u> smart cart. (In accordance with the "cart return" procedure to be determined).

● The entire process of collection/delivery (exchange) will be computerized and documented, including photographs and a signature on the customer's certificate.

● Receiving the faulty cart to the laboratory and handling it according to the "entering a cart to the laboratory" procedure.

● servicing the cart as required -the mechanical and electronic components of the cart, peripheral equipment (screen, scanner, scales, pinpad, etc.), computing and operating system, installation of an image with CUST2MATE Software.

● Any cart that has arrived for service in the laboratory, regardless of the nature of the malfunction, will undergo a complete checkup and preventive service in accordance with the procedures of CUST2MATE prior to its return to the customer.

● The Company will try its best to maintain the complete fleet, except in <u>out-of-warranty cases as detailed in the Limitation of Liability sections below</u>.

<u>Repair of products/parts outside the framework of service or malfunction caused by damage.</u>

● In the event of a malfunction outside the warranty framework, a record of the case (photo + description) will be made.

● Repair Cost – parts: in accordance with the price list in the agreement + travel/work time.

● Payment for the repair cost will be made immediately against a tax invoice.

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

<u>3<sup>rd</sup> and 4<sup>th</sup> Level support services</u>

\* 3rd and 4th Level support services

<u>Definition:</u>

● L3 team includes software/hardware support specialists, whose job is to solve the complex problems that have passed from the Level 2 team only. Using various means and tools, members of this team will try to solve the problem and, if necessary, seek additional help from L4 Team to continue solving the problem and/or opening a bug.

● Bugs that have received an "urgent" classification will be dealt with in the "HOT FIX" protocol based on a version installed in the field.

● Bugs in medium/low classifications will be dealt with in a future/next version, and their fixing will be installed in the field in accordance with the schedule set for a future/next version.

<u>Fields of responsibility</u>

● Maintaining ownership of the event until a solution is found. Regular status updates on the process.

● Reports classification (software failure/hardware failure/operational failure).

● Performing characterization activities (platform/hardware/driver) to isolate the source of the problem.

● Full deep-level analysis of the data obtained from the Level 2 team.

● Reproduce the problem on CUST2MATE LAB as needed.

● Providing solutions to new problems where possible; performing the necessary "tach" or operational solution to address the problem.

● Documentation in the knowledge base of CUST2MATE - problems/solutions.

● Transfer urgent fixes (Hot Fix) or settings fixes to the client.

● Configuration changes.

● Gather more information for bug fixing on level 4 requests.

● Fix the detected bugs and release them.

<u>Customer Responsibilities:</u>

● The Customer will take all reasonable actions necessary to assist the Company in identifying and reproducing problems and will provide the Company with all reasonable and necessary assistance in providing the Support Services. The customer agrees to notify the company within a reasonable time after the discovery of any problems.

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

● It is the Customer's responsibility to do its best to protect the computer systems connected to the smart cart and/or smart cart materials and to backups the information that will be inserted or stored on it. The protection and backup will be carried out using backup tools as recommended by the Customer's IT people from time to time, in accordance with generally accepted IT standards.

<u>General instruction:</u>

<u>Contract validity time</u>

● This contract entered into force on July 1, 2022 (hereinafter: the "**Date of Commencement of Services**") and will end 36 months thereafter (hereinafter: the "**Service Period** ").

● Notwithstanding the preceding and the following, either party shall be entitled to terminate this Agreement in one of the following cases:

○ The other party has fundamentally breached this Agreement and has not amended such breach within 30 days of the other party's written request.

○ The other party began liquidation and/or receivership proceedings, and/or these were not terminated and/or canceled within 60 days.

● 90 days prior to the end of the Service Period, the parties shall enter into good faith negotiations regarding the extension of the Service Term and the adjustment of the commercial terms for that additional period.

● Notwithstanding the preceding and below,

○ Yohananoff shall be entitled to terminate this Agreement, for any reason, by giving prior written notice to the Company of at least 120 days.

○ The Company shall be entitled to terminate this Agreement, for any reason, by giving Yohananoff at least 180 days prior written notice.

<u>The compensation</u>

● For the services specified in this service agreement, the Customer will pay the Company an annual service for each "smart cart" separately (commencing on the day of delivery of that cart), the amount of NIS[ ________ ] plus VAT (reflecting [ ________ ] % of the price of a "smart cart") (hereinafter: the "**Annual Consideration** ").

● The Annual Consideration shall be paid in four equal quarterly payments as follows

○ During the period of the services, at the beginning of each calendar quarter, the company will provide the customer with a report that specifies the proportional part of the aggregate annual proceeds (i.e., for all smart carts combined) for the services to be provided in this quarter (the "**Quarterly Report**" and the "**Quarterly Payment**," respectively).

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

○ No later than five business days after receiving the Quarterly Report, the Customer will transfer to the company's account (in accordance with instructions that will be given from time to time) the Quarterly Payment against a tax invoice.

● Notwithstanding the preceding, it is summarized as follows: The obligation to pay an annual consideration for each smart cart separately will take effect after the lapse of 12 months from its delivery date to the customer.

<u>Intellectual property and Confidentiality</u>

● The smart cart contains, among others, information, data, and content, some of which are owned by the Company and some of which are owned by third parties, protected by patents, copyrights, trademarks, and other proprietary rights. All intellectual property rights in the Smart Cart and its "related services", including, without limitation, in applications reports, software, designs, methods, graphics, texts, information, images, video, sound, and other files, their selection and organization) as well as new versions and updates released from time to time (if released) (the "**Smart Cart Materials** "), are the sole and full property of the Company and/or others on its behalf, and will remain its property even at the end of this Agreement. All intellectual property rights in developments, modifications, improvements, and adjustments made by "smart cart materials, insofar as they are made (by it or by others), will be the sole property of the Company and/or others on its behalf.

● The Customer is prohibited from adapting, using, or taking advantage of the smart cart materials for any purpose other than for personal use, itself or through others, except provided that it has received the express prior written consent of the Company. For the avoidance of doubt, except for such personal use, the use of the Smart Cart materials should not be construed as granting any right to the Company's intellectual property, the Smart Cart materials, or any knowledge related to these materials.

● The Client undertakes to maintain confidentiality and not to transfer to any third party any information that has come into his possession related to knowledge, secrets, work methods, or clients. The obligation to maintain confidentiality, as stated in this section, shall not apply to information that is in the public domain or to information that must be disclosed by the law or by an order of a governmental or judicial authority.

● Nothing in this section shall derogate from the Customer's ownership of the purchased smart carts, which are its private property (except for the aforementioned software, which remains owned by the company).

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

<u>Liability Limitation</u> 

● It is hereby clarified that except for the obligations specified in this Service Agreement, the Smart Cart materials are provided by the Company and/or others on its behalf as they are (AS IS), without the Company giving any representation, statement, or promise in connection with them, their quality, completeness, suitability to the customer's needs and anything else in connection with them.

● The Company cannot guarantee that access to and use of smart cart materials will operate at all times without any interruptions, delays, or errors. There are several factors that may affect the quality of communication and use of the Smart Cart and lead to a failure and/or interference and/or the ability to establish communication, including the local network, firewall, Internet service provider, public internet, and the smart cart's power supply.

● The Company's liability under this service agreement is limited to the provision of services in accordance with its provisions. The Company does not take any responsibility and/or is obligated to provide service under this agreement for any malfunctions and/or defects and/or damages that will be caused to the smart cart systems and/or its components in the following cases:

○ The operation of the smart cart (software and/or hardware) not in accordance with the operating instructions as provided to the Customer by the Company and/or anyone on its behalf or according to the manufacturer's instructions, including shaking the systems of the smart cart and/or parts of it and removing it from the store building (sales hall).

○ Any damage or malfunction of the smart cart systems, it's software and/or hardware, caused intentionally or as a result of gross negligence, improper and/or unprofessional use, defects and/or irregularities in the electricity, communications and/or air conditioning systems, explosions, natural disasters, acts of malice, radiation and/or radioactive pollution, water and moisture damage, the ingress of other liquids, and/or due to the penetration of foreign bodies to evaluate the smart cart and/or part of it, such as viruses and/or other harmful software.

○ Any damage and/or breakdown caused due to actions performed by a technician and/or any service person and/or another party other than the Company and/or someone on its behalf.

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

○ Any damage caused due to connecting additional components and/or installing additional software that the Company did not approve in writing and in advance.

○ Any other case in which, according to the provisions of this service and/or the provisions of any law Company is not responsible for;

● It is also clarified that the warranty and service under this agreement do not include the following:

○ Infrastructure/finishing works of equipment, including accessories, consumable items such as wheels, cable for the scanner, weight layers, and/or other items defined by the Company and/or the manufacturer as consumables.

○ Clearing devices – pinpads purchased by a customer, will be outside the framework of responsibility and service, except for the installation service that will be carried out by the company.

● In the event that malfunctions and/or defects and/or damages have been caused to the smart cart materials and/or its components due to one or more of the cases listed above, at the request of the Customer, the Company will repair the malfunction/damage, and the Customer will pay the cost of the repair, according to the price list appearing in this agreement, which will be valid at that time.

● The Customer agrees and confirms that its use of the smart cart and the services are at its own risk and that he will be solely responsible for any actions and omissions performed or made in connection with their use and will bear all the risks recognized as such.

● The Company shall have no liability of and/or liability of any kind whatsoever towards the Customer for indirect, special, consequential, loss of goodwill, loss of revenue and profits whether foreseeable or not, regardless of the cause of action or the cause of the damage, caused to the Customer in connection with the Smart Cart materials and/or services under this Services Agreement.

TRANSLATION FROM HEBREW

![](ex4-2_001.jpg)

● It is agreed that the Company's liability towards the Customer beyond what is stated in the framework of this Agreement (i.e., replacement and/or repair of any part and/or defective parts that may be required for the proper operation of the Smart Cart) and in relation to the Customer's use of the cart, will be limited to direct damages caused to the Customer by the Company or someone on its behalf, act or omission, and this liability of the Company shall not exceed [ ________ ] <u>NIS per year, with no accrual from year to year</u>. It is clarified and agreed as such for the purposes of this section, that insofar as the Customer is required to pay, following a judgment, and paid in practice, to a third party plaintiff for physical damages caused by the use of the smart cart, these amounts shall be considered direct damages.

● The Company has the right to make any changes, adjustments, updates, and improvements to the Smart Cart and/or the services from time to time, including with regard to access, content, structure, and manner of use, by adding information or services and/or subtracting information or services, provided that none of the above shall impair the use of the cart or reduce its capabilities as existing in the cart at the time it is provided to Yohananoff. In addition, it may update or change the Privacy Policy from time to time, as necessary, and as a result of changes in the law.

● The company reserves the right to stop supplying any smart cart parts with prior notice of six months.

<u>Governing Law and Jurisdiction</u>

● The provisions of this service agreement, its interpretation, validity, and violation shall be governed by the laws of the State of Israel. The authority to rule in all matters relating to this service agreement shall be vested in the competent courts in Tel Aviv-Yafo only so that the jurisdiction of any court and/or another tribunal shall be revoked.

## Exhibit 4.3

**Exhibit 4.3**

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| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

---

**Flex Manufacturing Services Agreement**

This Flex Manufacturing Services Agreement ("**Agreement**") is entered into as of June 22, 2021 (the "**Effective Date**") by and between Cust2mate Ltd., having its place of business at Yigal Alon 94, Tel-Aviv, ("**Customer**") and Flextronics (Israel) Ltd., having its place of business at 2 Hamatechet Migdal Haemek, 2306995, Israel Israel ("**Flex**" or "**Flextronics**").

Customer desires to engage Flex to perform manufacturing services as further set forth in this Agreement and in applicable agreed upon Specifications to be attached or incorporated by reference. The parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **DEFINITIONS**

Capitalized terms shall have the meanings set forth in this Agreement or in **<u>Exhibit 1</u>** attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **MANUFACTURING SERVICES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1. **<u>Services and Specifications</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the terms and conditions of this Agreement, Customer hereby engages Flex to procure Materials, and to manufacture, assemble, and test Products pursuant to mutually agreed upon written Specifications (collectively, such work, the "**Services**"). In case of any conflict between the Specifications and this Agreement, this Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Flex and Customer shall maintain and update the Specifications in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2. **<u>Engineering Changes</u>**. No part of the Product or Specifications may be changed without Customer's prior approval. Without derogating from the foregoing, it is hereby agreed between the Parties that either party may request that Flex incorporate engineering changes into the Product or Specifications by providing a written description of the proposed engineering change sufficient to permit the parties to evaluate the feasibility and cost of the proposed change. Flex shall proceed with engineering changes when the parties have agreed in writing upon the changes to the Specifications, delivery schedule and adjustments to the Fee List, and Customer has agreed to reimburse Flex the implementation costs preapproved in writing by Customer and adjust Product pricing, as applicable.

Subject to the receipt by Flextronics of Customer's accurate and most up-to-date cost/pricing baseline data on, or before, the Effective Date, Flextronics shall use its commercially reasonable efforts to identify within 14 days cost reductions, including reducing Materials' Standard Costs, all with the goal to reduce the prices for the Products. Upon implementation of such cost-reduction, to the extent mutually approved by both parties, the full benefit of such reduction for the remaining part of the 6-Month Period (as defined below) of which the cost reduction was obtained shall be allocated equally between the parties; and following such 6-Month Period the Customer shall will receive the full benefit of such cost reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3. **<u>Tooling; Non-Recurring Expenses; Software</u>**. Customer shall pay for or obtain and consign to Flex any Product and NPI Product specific tooling, equipment or software (collectively, "**Customer Tooling**") and other reasonably necessary non-recurring expenses (if any) as shall be set forth in the Fee List. In addition, Customer shall be responsible for maintaining any Product/NPI Product-specific tooling (e.g. performing calibration to all test equipment, providing spare parts and software updates). Customer hereby grants Flex any and all licenses to use Customer Tooling as necessary to perform Flex's obligations under this Agreement. Notwithstanding anything to the contrary under this Agreement or under applicable law, Flex shall not be responsible for any maintenance, repairs or replacements of Customer Tooling and shall not be responsible for any damage caused to or by Customer Tooling other than physical damage caused to Customer Tooling by Flex's malicious and/or grossly negligent behavior; Customer shall respectively indemnify Flex against and hold it harmless from any other damage or loss caused by Customer Tooling other than damage or loss caused due to Flex's malicious and/or grossly negligent behavior. It is further clarified and agreed that Flex' non-performance hereunder is excused to the extent resulting from Customer Tooling and its undertakings under this Agreement are respectively conditioned, unless caused due to Flex's malicious and/or grossly negligent behavior.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4. **<u>Location of the Services</u>**. Flex may perform the Services in any of its facilities in Israel unless it is expressly stated otherwise in a formal exhibit signed and annexed to this Agreement as **<u>Exhibit ‎2.4</u>**. To the extent so stated in such Exhibit, Flex shall not change the location of the Services of any Product from a Facility to another location without the prior written consent of Customer, which Customer shall not unreasonably withhold or delay.

---

| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

---

Flextronics will provide Customer and/or Customer representatives, subject to confidentiality obligations, with limited access to its designated Facilities from which it performs the manufacturing Services under this Agreement for the purpose of either visiting or auditing the manufacturing processes only. It is clarified that no documents or downloads of data of any kind, or any copies, may be removed from Flextronics's premises without Flextronics's prior written consent. Customer will conduct such visit or audit (as applicable) in a reasonable manner so as to mitigate disruption to the Services. Visits and audits may only be conducted during normal business hours, shall be coordinated with Flex at least seventy-two (72) hours in advance, provided audits (other than site visits in the ordinary course of relationship management) shall be conducted (if conducted) once per quarter only.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5. **<u>Quality Agreement</u>**. The Parties agree to comply with the obligations set out in an agreed upon Quality Agreement that shall be annexed hereto. The Quality Agreement shall be subject to the terms and condition of this Agreement. In the event of any conflict between the Quality Agreement or any other exhibit hereto and this Agreement, this Agreement shall prevail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **NPI SERVICES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1. To the extent Customer requires NPI Services, Customer will provide Flex with a written request setting forth a description of the requested NPI Services sufficient to permit Flex to evaluate its feasibility and cost. Flex may either (i) pursue such request by way of entering into a separate agreement or by way of accepting a purchase order hereunder as further provided in this Section below; or (ii) reject such request. To the extent Flex wishes to perform the NPI Services by accepting a purchase order hereunder as provided aforesaid, the parties are required first to agree in writing on the respective applicable specifications, delivery schedule and pricing. It is further agreed that any NPI Services performed, and/or NPI Product delivered, hereunder shall be provided on an "as-is" basis. Flex makes no representations and no warranties, whether express, implied, statutory, or in any other provision of this Agreement or communication with Customer on the NPI Services, the NPI Products and/or any products based on or incorporating any NPI Products, and Flex specifically disclaims any implied warranty or condition of merchantability or fitness for a particular purpose or non-infringement. The entire risk as to the quality and performance of the NPI Products is with the Customer. Furthermore, Flex may terminate any NPI Service, at any stage, if Flex cannot deliver one or all of the deliverables of the NPI Services due to causes beyond its control, including without limitation as specified in Section ‎10.4. In such event, Customer will compensate Flex for work performed at Flex's standard hourly billing rates quoted in the respective NPI fee list, and for out-of-pocket costs incurred prior to the date of stoppage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **FORECASTS; ORDERS; FEES; PAYMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1. **<u>Forecast and Purchase Orders</u>**. Customer shall provide Flex, on a quarterly basis, a rolling twelve (12) month forecast indicating Customer's monthly Materials and Product and Services requirements, reflecting Customer's best estimate using reasonable and professional assumptions and based on all information available to Customer (the "**Forecast**"). Unless a different timeframe is agreed to by the parties in a formal exhibit signed and annexed to this Agreement as **<u>Exhibit ‎2.4</u>**, Customer shall on a monthly basis provide purchase orders for the first three (3) months of the then-applicable Forecast, which shall be a non-cancellable portion of the Forecast ("**Binding Forecast**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2. **<u>Purchase Orders; Precedence</u>**. As a matter of convenience, Customer may use its standard purchase order form for any orders provided for hereunder. The terms and conditions contained in this Agreement prevail over any terms and conditions of any such purchase order, acknowledgment form or other form instrument exchanged by the parties, and no additional, contradictory, modified or deleted terms established by such instruments are intended to have any effect on the terms of this Agreement, even if such instrument is accepted by the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3. **<u>Purchase Order Acceptance</u>**. Flex shall accept purchase orders from Customer that comply with all of the following : (a) The purchase order is consistent with the Forecast for the same period, unless otherwise approved in writing and in advance by Flex; (b) the purchase order reflects the Fee List as updated from time to time pursuant to the terms herein; (c) the requested delivery date is consistent with the applicable Lead Time; and (d) the purchase order would not extend Flex's financial exposure beyond Customer's then approved credit line. Flex may notify Customer of rejection of any purchase order within five (5) business days of receipt of such purchase order. Without derogating from the above Flex shall use commercially reasonable efforts to accept purchase orders for Product quantities beyond Forecast for the same period.

---

| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4. **<u>Fees; Changes; Taxes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The initial fees shall be as identified in the **Fee List** which shall be attached hereto as **<u>Exhibit ‎4.4(a)</u>** and incorporated herein by reference. If a Fee List is not attached or completed or amended as agreed upon, then the prices shall be as mutually agreed between the parties and indicated in the respective purchase order issued by Customer and approved by Flex in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Fee List shall be reviewed by the parties twice each calendar year (following June 30 and December 31) (each a "**6-Month Period**") and changes shall be made to reflect changes agreed in writing by the parties. Subject to the foregoing, any changes to the Fee List and timing of changes (including, without limitation, engineering related changes set forth in Section ‎2.2) shall be agreed by the parties, such agreement not to be unreasonably withheld or delayed; by way of example only, the fees shall be increased or decreased if the market price of fuels, Materials equipment, labor and other production costs, increase beyond normal variations in pricing or currency exchange rates as demonstrated by Flex or by Customer. Notwithstanding the foregoing, if any taxes, duties, laws, rules, regulations, court orders, administrative rulings or other governmentally-imposed or governmentally-sanctioned requirements (including mandatory wage increases) result in changes to the costs of performance of any Services hereunder (a "**Governmental Change**"), then the parties shall, as soon as possible following the identification of such Governmental Change, agree on and implement revised prices to reflect such Governmental Change, retroactive to the date on which the Governmental Change became effective. Furthermore, notwithstanding anything to the contrary herein, the Standard Cost of Materials may be adapted in consideration of market price changes due to reasons outside the direct control of Flex, whether projected or not during the 6-Month Period only to the extent approved in writing and in advance by Customer (through Flex's customary PPV mechanism or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the Fee list adjustment mechanism, all items in the Fee List reflecting labor costs shall be linked to (i) increases in the Israeli Consumer Price Indexes published from time to time by the Israeli Central Bureau of Statistics (where the base CPI is the CPI known at the time of agreement on the Fees); and (ii) increases in the minimum wage according to applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) After each new Fee List, Flex shall perform a re-evaluation of the current Inventories and Special Inventories (on hand and/or on order and not cancellable without charge), in order to enable the immediate use of the new prices listed in the new Fee List. Flex shall provide Customer with pricing variances per Materials, Inventory item and/or Special Inventory Item (collectively "**Item/(s)**") which will include the re-evaluation results. The re-evaluation shall be performed in accordance with the following formula, and Flex shall issue a respective invoice to be paid by Customer within ten (10) days from the date of invoice, or a credit note, as applicable:

A=old price (per Item)

B=the new price (per Item)

C=quantity within the inventory (on hand and/or on order and not cancellable without charge)

D=amount for debit/credit pursuant to the reevaluation per Item.

D=C\*(A-B) \*[__]%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Customer is responsible for additional fees and costs due to: (i) changes to the Specifications (including specifications for NPI Products), to the projected volumes, minimum run rates, or to any assumptions set forth in Fee List; (ii) a Governmental Change; (iii) failure of Customer or its subcontractor to timely provide sufficient quantities or a reasonable quality level of Customer Controlled Materials where applicable to sustain the production schedule; and (iv) any pre-approved expediting and/or de- expediting charges reasonably necessary because of a change in Customer's requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) All Fees are, to the extent approved in writing by the parties, exclusive of (i) Taxes, (ii) amounts related to the export licensing of the Product and payment of brokers fees, duties, tariffs or similar charges, and (iii) NRE Charges, and Customer shall be responsible for all such items.

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| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To the extent Flex agrees to pay any import duties, including without limitation any customs, excise, purchase tax etc., and VAT applicable on the import of Materials, equipment and services, Customer will promptly reimburse, indemnify and hold Flex harmless for such costs. Flex will provide to Customer the respective supportive documents and will make commercially reasonable efforts to assist Customer in eliminating, reducing and recovering such costs under relevant laws and regulations. Flex will not claim reimbursement for any such costs that are timely reimbursed to Flex. If legally obligated, Flex will charge such costs as separately stated amounts on invoices in connection with the sale of Products to Customer. For the avoidance of doubt, Flex is not responsible or liable in any manner for the classification or reclassification of said Materials, equipment, services or Products for import or export purposes and any risk associated therewith shall reside exclusively with Customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5. **<u>Currency and Exchange Rates</u>**. Unless otherwise agreed in writing, the Fees List shall be based on the exchange rate(s) for converting non-U.S. Dollar Inventory purchases into U.S. Dollars. The fees shall be adjusted with a debit/credit memo on a 6-Month Period basis and subject to exchange rate(s) increasing or decreasing by over 2%, based on the cumulative changes in the exchange rate(s) from month to month in the previous 6-Month Period. The 6-Month Period exchange rate variances are calculated using the Bank of Israel® exchange rates on the last business day of each month. Without derogating from the foregoing, it is hereby agreed between the Parties that in any event where there is a change in the exchange rate of more than 2% in any currency, affecting any of the price elements (BOM, Labor, other VAM aspects) the following shall apply: (a) twice a year the Parties shall adjust the Fees accordingly and (b) on a quarterly basis, the Parties will reconcile the gap for the preceding calendar quarter. For the purpose hereinabove, it is hereby clarified that U.S. Dollar – NIS baseline exchange rate is 3.5 NIS per 1 U.S. Dollar.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6. **<u>Payment</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer shall pay all amounts due in U.S. Dollars within end of the month + thirty (30) days of the date of the invoice, unless otherwise agreed in the Fee List.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Customer fails to pay amounts due in accordance with the foregoing Customer shall pay one and one-half percent (1.5%) monthly interest on all late payments, provided that no interest shall apply for payment late not more than fourteen (14) days. Furthermore, if Customer is (i) late with payments for more than 30 days or (ii) Customer fails to timely provide Flex with information and/or security as required under this Section and Section ‎4.7 below, then Flex may with written notice, in its sole discretion, undertake any or any combination of the following: (a) stop all Services under this Agreement (including any warranty service Flex would otherwise be obligated to render hereunder for Product not fully paid for) until assurances of payment satisfactory to Flex are received or payment is received; (b) demand prepayment for purchase orders; (c) delay shipments; and (d) to the extent that Flex's personnel cannot be reassigned to other billable work during such stoppage or in the event restart cost are incurred, invoice Customer for additional fees before the Services can resume. Customer agrees to provide all necessary financial information required by Flex from time to time in order to make a proper assessment of the creditworthiness of Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7. **<u>Credit Terms/Security Interest</u>**. Flex shall provide Customer with an initial credit limit, which shall be reviewed (and, if necessary, adjusted) periodically. Customer shall provide information reasonably requested by Flex in support of such credit reviews, including without limitation, full annually audited and quarterly reviewed financial statements (P&L, BS and Cash Flow statements). In Flex's reasonably exercised discretion , Flex shall have the right to reduce Customer's credit limit and/or require Customer to obtain and maintain a standby letter of credit or escrow account on behalf of Flex; in such case, the bank chosen by Customer shall be reasonably acceptable to Flex, the letter of credit or escrow account shall be in force for a minimum period of time of twelve (12) months and shall be in an amount equal to Flex's entire exposure, including without limitation the risks associated with Inventory, Special Inventory, and the accounts receivable from the Customer in accordance with Customer's forecasts. The draw down procedures under the standby letter of credit or the escrow account shall be determined solely by Flex. Flex shall have the right to suspend performance (e.g., cease ordering Materials required to fulfill accepted purchase orders and/or cease manufacturing or making Product deliveries and/or providing NPI Services) until Customer either makes a payment to bring its account within the revised credit limit and/or makes other arrangements satisfactory to Flex. At Flex request, Customer shall forthwith grant Flex a security interest in the Products delivered to Customer until Customer has paid for the Products and all Product-related charges. Customer agrees to promptly execute any documents requested by Flex to perfect and protect such security interest.

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| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **MATERIALS PROCUREMENT; CUSTOMER RESPONSIBILITY FOR MATERIALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1. **<u>Authorization to Procure Materials, Inventory and Special Inventory</u>**. Each of Customer's accepted purchase orders and each Binding Forecast shall constitute authorization for Flex to procure, without Customer's prior approval:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Inventory to manufacture the Products and/or NPI Products (as applicable) covered by such purchase orders and Binding Forecast based on the applicable Lead Times; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Minimum Order Inventory reasonably required to support Customer's purchase orders and Binding Forecast; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any other Special Inventory separately authorized by Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Long Lead Time Materials only to the extent necessary (i) to support the then Customer's accepted purchase orders and each Binding Forecast; *<u>or</u>* (ii) other Long Lead Time Materials necessary to support the then Customer's demands subject to Customer's prior written/electronic specific authorization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2. **<u>Supply Chain Management</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Purchases from AML and AVL</u>**. Customer shall provide to Flex and maintain an AML. If Flex co-sources Material for Customer, the parties will address changes to the AML in accordance with the Section entitled Engineering Changes. Flex shall only purchase Material which is manufactured by the manufacturer on the AML. Customer may provide to Flex an AVL. If Customer provides an AVL, Customer shall include Flex on the AVL for Materials that Flex can supply and, if Flex is competitive with other vendors with respect to reasonable and unbiased criteria for acceptance established by Customer, Customer shall raise no objection to Flex sourcing Materials from Flex. If Customer does not provide an AVL to Flex with respect to any Material, then Flex may use its own AVL. For purposes of this Section 5.2 only, the term "Flex" includes any Flex Affiliates. Any changes to the AVL and /or AML by Customer shall be coordinated within sufficient time in advance with Flex so as to minimize any adverse impact on Flex' ability to provide the Services in an efficient and competitive manner. Unless otherwise agreed, such change shall be effective only with respect to purchase orders issued and accepted after such change is introduced and shall not apply to Materials ordered prior thereto in accordance with the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **<u>Customer Controlled Materials</u>**. Customer may direct Flex to purchase Customer Controlled Materials in accordance with the Customer Controlled Materials Terms. Customer acknowledges that the Customer Controlled Materials Terms may directly impact Flex's ability to perform under this Agreement and to provide Customer with the flexibility Customer is requiring pursuant to the terms of this Agreement. In the event that Flex reasonably believes that Customer Controlled Materials Terms shall create an additional cost that is not covered by this Agreement, then Flex shall notify Customer and the parties shall agree to either (i) compensate Flex for such additional costs, (ii) amend this Agreement to conform to the Customer Controlled Materials Terms or (iii) amend the Customer Controlled Materials Terms to conform to this Agreement, in each case at no additional charge to Flex. Customer agrees to provide copies to Flex of all Customer Controlled Materials Terms upon the execution of this Agreement and promptly upon execution of any new agreements with vendors. Customer agrees not to make any modifications or additions to the Customer Controlled Materials Terms or enter into new Customer Controlled Materials Terms with vendors that shall negatively impact Flex's procurement activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **<u>Vendor Warranties for Materials</u>**. To the extent Flex actually receives from a vendor of Materials or services the benefit arising from said vendor's warranty obligations related to its Materials or services, Flex shall transfer such benefit to Customer (without any actual liability for such vendor's warranty obligations) related to the following warranties with regard to the Materials or services: (i) conformance of the Materials or services with the vendor's specifications and/or with the Specifications; (ii) that the Materials or services shall be free from defects in design, materials, or workmanship; (iii) that the Materials or services shall comply with Environmental Regulations or other laws; and (iv) that the Materials or services shall not infringe the intellectual property rights of third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3. **<u>Customer Responsibility for Inventory and Special Inventory</u>**. Customer is responsible under the conditions provided in this Agreement for all Inventory and Special Inventory purchased by Flex in compliance with its applicable obligations under this Section ‎5.

---

| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **SCHEDULE CHANGE, CANCELLATION, STORAGE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1. **<u>Quantity Increases and Shipment Schedule Changes</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For any accepted purchase order or Binding Forecast, Customer may request an increase in the quantity of Materials or Products ordered or forecast. All Product quantity increases require Flex's approval, which, in its sole discretion, may or may not be granted. Flex shall use reasonable commercial efforts to meet any allowed Product quantity increases, which are subject to Materials and capacity availability. If Flex agrees to such increase in the quantity, and if there are extra costs to meet such increase, then Customer shall be liable for such extra costs. Any decrease in quantity is considered a cancellation, unless the decreased quantity is rescheduled for delivery at a later date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For any accepted purchase order, Customer may request a reschedule of the expected delivery date not to exceed ten (10) business days from original delivery date. During the first three (3) month of the Term all Product reschedules in excess of ten (10) business days require Flex's approval, which, in its sole discretion, may or may not be granted. If Flex agrees to accept a reschedule of any length of time, and if there are extra costs to meet such reschedule or increase, then Customer shall be liable for such extra costs. Any part of a purchase order quantity that is rescheduled pursuant to this Section ‎6 may not be subsequently rescheduled. It is hereby clarified that, subject to Customer's liabilities for Excess, Aged, and Obsolete Inventories as provided in Section 6.3 herein below, and solely with respect to Products the original delivery of which is scheduled outside the following subsequent 90-day period, customer may reschedule the original date of which, with no limitation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any delays in the normal production or interruption in the workflow process caused by Customer's changes to the Specifications or failure to provide sufficient quantities or a reasonable quality level of Customer Controlled Materials where applicable to sustain the production schedule, shall be considered a reschedule of any affected purchase orders for purposes of this Section for the period of such delay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Products and/or NPI Products (as applicable) that have been ordered by Customer and that have not been picked up within 14 days after the original agreed upon shipment dates shall be considered cancelled and Customer shall be responsible for such products in the same manner as set forth in Section ‎6.2 below and any risk therein shall thereupon transfer to Customer. Customer agrees that Flex shall have the right to invoice it for all cancelled Products and agrees to provide Flex, within ten (10) business days following the invoice, the location to which Flex shall ship the Products within Israel. Flextronics may further elect, by giving Customer 14 business days prior written notice, to transfer such Products to a separate storage within Flextronics or to warehouse operated by a third party and to have any such transfer considered a delivery and sale to Customer for all intents and purposes, with title to such products transferring thereupon from Flextronics to Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2. **<u>Cancellations</u>**.

Customer may not cancel all or any portion of Product quantity of an accepted purchase order without Flex's prior written approval, which, in its sole discretion, may or may not be granted. If Customer does not request prior approval or if Customer and Flex do not agree in writing to specific terms with respect to any approved cancellation, then Customer shall pay Flex Monthly Charges for any such cancellation, calculated as of the first day after the date of such cancellation notice or the original delivery date, whichever is earlier, for any Product or Inventory procured by Flex to support the original delivery schedule including any Special Inventory procured in connection therewith. In addition, if any such Product (or partially completed Product), Inventory and/or Special Inventory has remained in Flex's possession, Customer shall be liable to such Products (or partially completed Product) in accordance with the provisions of Section 6.3 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3. **<u>Excess, Aged, and Obsolete Inventory</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer shall be responsible for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Excess Inventory</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Carrying Charges. At the end of every calendar month, Flex shall report the Excess Inventory. Such Excess Inventory reports shall normally be deemed agreed to by Customer, unless Customer provides a reasoned written objection within fourteen (14) days of the end of the corresponding calendar month. Customer shall pay Flex a carrying cost fee equal to the value of the Excess Inventory times the Monthly Charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Payment for Excess Inventory. At the end of every calendar month, Customer shall purchase Excess Inventory that has been Excess Inventory for at least three (3) months, as identified by Flex in each monthly report, at a price equal to (as applicable) the price from the Fee List for any finished Products, the cost for any partially completed Products, and Standard Cost for any other Excess Inventory.

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| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Obsolete Inventory</u>. At the end of every calendar month, Flex shall report the Obsolete Inventory. Customer's failure to object to Flex's Obsolete Inventory report (or failure to deny its responsibility for such inventory) by providing a reasoned written objection within fourteen (14) days from the report's date shall constitute its acceptance of Flex's Obsolete Inventory report. After a validation period, which shall not exceed fourteen (14) days from the date of such report, Customer shall purchase the Obsolete Inventory at a price equal to (as applicable) the price from the Fee List for any finished Products, the cost for any partially completed Products, or Standard Cost plus MOH for any other Obsolete Inventory. For any Obsolete Inventory that is not purchased by Customer, Customer shall pay Flex a carrying cost fee equal to the value of the Obsolete Inventory times the Monthly Charges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Aged Inventory</u>. At the end of every calendar month, Flex shall report the Aged Inventory. Customer's failure to object to Flex's Aged Inventory report (or failure to deny its responsibility for such inventory) by providing a reasoned written objection within fourteen (14) days from the report's date shall constitute its acceptance of Flex's Aged Inventory report. After validation, which shall not exceed fourteen (14) days from the date of such report, Customer shall purchase the Aged Inventory at a price equal to (as applicable) the price from the Fee List for any finished Products, the cost for any partially completed Products, or Standard Cost plus MOH for any other Aged Inventory. For any Aged Inventory that is not purchased by Customer, Customer shall pay Flex a carrying cost fee equal to the value of the Aged Inventory times the Monthly Charges.

Prior to invoicing Customer for the amounts due pursuant to Sections ‎6.1, ‎6.2 and this Section ‎6.3 (other than the carrying charges for Excess Inventory), Flex shall use commercially reasonable efforts for a period not to exceed fourteen (14) days from the date of any such reports, to return for refund unused Materials from Excess, Obsolete, Aged Inventory and Special Inventory, to cancel pending orders for such inventory, and to otherwise mitigate the amounts payable by Customer.

Customer shall submit payment for the amounts identified and invoiced pursuant to this Section in accordance with the terms for payment set forth above in Section ‎4. Flex shall ship the Excess, Obsolete, and Aged Inventory and Special Inventory to Customer promptly following said payment by Customer pursuant to the shipping terms set forth in Section ‎7.1 below. In the event Customer does not pay in accordance with the payment terms set forth above, then, in addition to any late payment charges that Flex is due from Customer, Flex shall be entitled to dispose of such Excess, Obsolete, and Aged Inventory and Special Inventory in a commercially reasonable manner and credit to Customer any monies received from third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For changes by Customer to accepted purchase orders and/or Binding Forecast (including cancellation and reschedules) that are not consistent with this Section ‎6, Customer shall be responsible for the following costs in addition to the charges set forth above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any vendor cancellation charges incurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) expenses incurred by Flex related to labor and equipment specifically put in place to support the purchase orders and Binding Forecasts that are affected by such reschedule or cancellation (as applicable); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the cost of unwinding any currency hedging contracts entered into by Flex that are affected by such reschedule or cancellation (as applicable) (it being understood that Flex shall provide Customer with a credit for any gain received by Flex as a result of such unwinding).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4. **<u>No Waiver</u>**. Flex's failure to invoice Customer for any of the charges set forth in this Section does not constitute a waiver of Flex's right to charge Customer for the same event or other similar events in the future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **SHIPPING TERMS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **<u>Shipments</u>**. Flex shall (a) deliver all Products pursuant to the terms of this Agreement suitably packed for shipment in accordance with the Specifications and marked for shipment to Customer's and/or its designee destination specified in the applicable purchase order, and (b) make such deliveries EXW (Ex works, Incoterms 2020) Flex's manufacturing facility. Risk of loss and title shall pass to Customer upon delivery by Flex of the Products to the stated delivery point in accordance with the applicable Incoterm. All freight, insurance and other shipping expenses, as well as any special packing expenses not expressly included in the original quotation for the Products, shall be paid by Customer.

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| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2. **<u>Trade Compliance</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Neither party shall export, re-export or otherwise transfer any Products, Materials commodities, software, or technology in connection with performance of this Agreement (individually and collectively, "**Technology**") inconsistent with any requirement of the Export Administration Regulations (EAR), the International Traffic in Arms Regulation (ITAR), or Foreign Assets Control Regulations, or the laws or regulations of the State of Israel (including, without limitation, the Defense Export Control Law, 5767 -2007 and any regulations thereto), the United States and (as applicable) the exporting country outside the U.S, provided, however, in the case of Flex, that Customer provides all information necessary to perform proper export authorization (to the extent applicable) and shall be responsible for the accuracy and completeness of all such information provided by Customer, including: identification of all parties to the transaction, HTS and ECCN classifications, and any other information relevant to licenses for the Technology. In addition, neither party shall export, re-export or otherwise transfer any Technology to any end-user engaged in, or for any end use related to, directly or indirectly, the design, development, production, use or stockpiling of weapons of mass destruction or the means of delivery thereof (e.g., nuclear, chemical, biological, etc.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Customer shall be responsible for obtaining any license, permit or other governmental approvals (individually and collectively, "**Export Licenses**") required for the export, re-export, or transfer of any Technology, and Customer shall inform Flex when an Export License has been obtained and communicate the terms and conditions of any such Export License to Flex. Customer shall be responsible for all reviews, classifications and licenses related to any encryption or other information security-related regulations (including Encryption Review Requests and Commodity Classification Automated Tracking System numbers), and Customer shall inform Flex of the terms and conditions of any applicable restrictions or licenses related thereto and the authorities from which such restrictions or licenses have been received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent that Products are imported into any country, the Customer shall act as the importer of record.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event Customer designates a supplier (including Materials vendors, transporters, warehousemen, freight forwarders, and brokers) to be used by Flex, then: (i) Customer shall designate only suppliers that comply with the minimum security requirements of applicable voluntary anti-terrorism security measures (e.g., C-TPAT Customs-Trade Partnership Against Terrorism); (ii) Customer shall prohibit any such suppliers from sub-contracting to any suppliers that are not in compliance with the aforementioned laws and minimum security requirements; and (iii) Customer shall support Flex in determining supplier compliance with the requirements in this Subsection, including without limitation by requiring suppliers designated by Customer to complete a Flex questionnaire and to undergo periodic on-site audits to be conducted by a provider designated by Flex, at Customer's expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **EXPRESS LIMITED WARRANTY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1. **<u>Product Acceptance</u>**. The Products delivered by Flex shall be inspected and tested as required by Customer within 30 days of delivery at the "ship to" location on the applicable purchase order. If Products do not conform to the purchase order or the express limited warranty set forth in this Section below, Customer has the right to reject such Products during said period. Products not rejected during said period shall be deemed accepted. Customer may return defective Products in accordance with the procedures set forth below. Customer shall bear all of the risk of loss, and all costs and expenses, associated with Products that have been returned to Flex for which there is no defect found.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2. **<u>Express Limited Warranty</u>**. This Section sets forth Flex's sole and exclusive warranty and Customer's sole and exclusive remedies with respect to a breach by Flex of such warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Flex warrants that the Products shall (i) have been manufactured in accordance with the applicable Specifications, and (ii) be free from defects in workmanship and/or manufacturing processes covered under the agreed Specifications, in each case for a period of twelve (12) months from the date of delivery.

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| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything else in this Agreement, this express limited warranty does not apply to, and Flex makes no representations or warranties whatsoever and Flex shall have no liability under or in connection with this Agreement) with respect to any of: (i) Customer tooling; (ii) Materials or services provided by vendors on the AVL; (iii) defects resulting from adherence to the Specifications, or any instructions provided by or on behalf of Customer; (iv) the design of the Products; (v) Product that has been abused, damaged, altered or misused or mishandled (including improper storage or installation or improper handling in accordance with static sensitive electronic device handling requirements) by any person or entity after title passes to Customer; (vi) NPI Services and NPI Products (whether incorporated into a product or not); (vii) defects resulting from tooling, designs or instructions produced or supplied by Customer, including any defective test equipment or test software provided by Customer; or (viii) the compliance of Materials or Products with any safety or Environmental Regulations or other laws. Customer shall be liable for costs or expenses incurred by Flex arising out of or related to the foregoing exclusions to Flex's express limited warranty. Upon any failure of a Product to comply with this express limited warranty, Flex's sole obligation, and Customer's sole remedy, is for Flex, at Flex's option, to promptly repair or replace such unit and return it to Customer, freight prepaid. In the event that such unit cannot be repaired or replaced using commercially reasonable efforts, Flex shall refund the price paid by the Customer to Flex for such unit. Customer shall return Products covered by this warranty freight prepaid after completing a failure report and obtaining a return material authorization number from Flex to be displayed on the shipping container. This warranty will not apply to any Product that is returned more than thirty (30) days after the expiration of the warranty period set forth in Section ‎8.1(a). Furthermore, this warranty shall not apply if the Customer has removed from Flex's possession, for any reason, any tools or equipment that are necessary to repair the Product. Customer shall bear all of the risk, and all costs and expenses, associated with Products that have been returned to Flex for which there is no defect found.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Customer shall provide any and all warranties directly to any of its end users or other third parties, and Customer shall not pass through to end users or other third parties the warranties made by Flex under this Agreement. Furthermore, Customer shall not make any representations to end users or other third parties on behalf of Flex, and Customer shall expressly indicate that the end users and third parties must look solely to Customer in connection with any problems, warranty claim or other matters concerning the Product.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3. **<u>No Representations or Other Warranties</u>**. FLEXTRONICS MAKES NO OTHER REPRESENTATIONS OR WARRANTIES ON THE PERFORMANCE OF THE SERVICES, OR THE PRODUCTS, EXPRESS, IMPLIED, STATUTORY, OR IN ANY OTHER PROVISION OF THIS AGREEMENT OR COMMUNICATION WITH CUSTOMER, AND FLEXTRONICS SPECIFICALLY DISCLAIMS ANY IMPLIED WARRANTY OR CONDITION OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. FURTHERMORE, FOR THE SAKE OF GOOD ORDER AND WITHOUT DEROGATING FROM THE GENERALITY OF THE FOREGOING, NO CLAIMS FOR LACK OF CONFORMITY ("IH HATAMAA") MAY BE MADE AGAINST FLEXTRONICS UNDER THE SALE LAW, 5728-1968.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **REGULATORY COMPLIANCE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1. **<u>Regulatory Approvals</u>.** Customer shall be responsible for applying for, obtaining, and maintaining at its sole cost and expense any regulatory and agency approvals required for the development, marketing or sale of the Products in the countries where Products may be sold, used or destined.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2. **<u>Product Complaints / Reports</u>.** Customer shall be responsible for handling all complaints and inquiries related to the Products made by users of the Products, and any reporting requirements related thereto. Subject to compliance with applicable laws and regulations, Flextronics shall promptly provide to Customer any information received by Flextronics regarding any compliant or adverse event with respect to the Products. Each party shall reasonably cooperate with the other in sharing any information that may constitute a complaint related to the Products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **TERM AND TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1. **<u>Term</u>**. Subject to termination as expressly set forth in this Agreement, (a) the term of this Agreement shall commence on the Effective Date and shall continue for one year thereafter, and (b) after the expiration of the initial term hereunder, this Agreement shall be automatically renewed for separate but successive one-year terms unless either party provides written notice to the other party that it does not intend to renew this Agreement ninety (90) days or more prior to the end of any term.

If the parties do not reach an agreement regarding the initial Fee List to be attached hereto as Exhibit ‎4.4(a), within 90 business days as of the Effective Date hereof, either party may terminate this agreement by providing ten (10) days written notice, and neither of the Parties shall have any claims towards the other in regards to such termination, to the extent each party complied with its respective obligations under Section 10.3 of this Agreement.

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| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2. **<u>Termination</u>**. This Agreement may be terminated by either party (a) for convenience upon ninety (90) days written notice to the other party, (b) if the other party defaults in any payment to the terminating party and such default continues without a cure for a period of fourteen (14) days after the delivery of written notice thereof by the terminating party to the other party, (c) if the other party materially defaults in the performance of any other term or condition of this Agreement and such default continues unremedied for a period of thirty (30) days after the delivery of written notice thereof by the terminating party to the other party, (d) upon the other Party seeking an order for relief under the bankruptcy laws of the State of Israel or similar laws of any other jurisdiction, a composition with or assignment for the benefit of creditors, or dissolution or liquidation proceedings are initiated by or against the other party and not withdrawn within 30 days or an attachment or similar encumbrance is levied over a substantial part of the other Party's assets and is not removed within thirty (30) days, or (e) in accordance with the provision addressing Force Majeure events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3. **<u>Effect of Expiration or Termination</u>**. Expiration or termination of this Agreement under any of the foregoing provisions: (a) shall not affect the amounts due under this Agreement by either party that exist as of the date of expiration or termination, and (b) as of such date the provisions of Sections ‎6 shall apply with respect to payment and shipment to Customer of all Inventory in existence as of such date. In any case, in the case of termination of this Agreement for whatever reason, all claims for damages due to termination itself shall be excluded, except in case of gross negligence or willful intent. The following Sections, and any terms or provisions necessary to interpret or enforce such Sections, shall survive any termination or expiration of this Agreement: ‎1, ‎4.6, ‎4.7, ‎5.3, ‎6, ‎7, ‎8.1, ‎8.2 and ‎9-‎13.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **INDEMNIFICATION; LIABILITY LIMITATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1. **<u>Indemnification by Flex</u>**. Flex agrees to defend, indemnify and hold harmless, Customer and its Affiliates, and all directors, officers, employees, and agents (each, a "**Customer Indemnitee**") from and against all claims, actions, losses, expenses, damages or other liabilities, including reasonable attorneys' fees (collectively, "**Damages**") incurred by or assessed against any Customer Indemnitee, but solely to the extent arising out of third-party claims relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any actual or alleged injury to any person (including death) or physical damage to property caused, or alleged to be caused, by a Product sold by Flex to Customer hereunder, but solely to the extent such injury or damage has been caused by the breach by Flex of its express limited warranties set forth in Section **‎**8;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any actual or alleged infringement or misappropriation of the intellectual property rights (including any industrial design rights, database rights or any other form of intangible or business property rights) of any third party, but solely to the extent that such infringement or misappropriation is caused by a process that Flex elects to use to manufacture, assemble or test the Products; however, Flex shall not have any obligation to indemnify Customer if such claim would not have arisen but for Flex's manufacture, assembly or test of the Product in accordance with the Specifications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. **<u>Indemnification by Customer</u>**. Customer agrees to defend, indemnify and hold harmless, Flex and its Affiliates, and all directors, officers, employees and agents (each, a "**Flex Indemnitee**") from and against all Damages incurred by or assessed against any Flex Indemnitee, but solely to the extent arising out of third-party claims relating to the Products, NPI Products and/or Services and/or Customer Tooling, except to the extent such Damages arise from Flex's breach of its express limited warranties set forth in Section **‎**8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3. **<u>Procedures for Indemnification</u>**. With respect to any third-party claims, each party shall give the other party prompt written notice of any third-party claim and cooperate with the indemnifying party at the indemnifying party's expense. The indemnifying party shall have the right to assume the defense (at the indemnifying party's own expense) of any such claim through counsel of its own choosing by so notifying the party seeking indemnification within thirty (30) days of the first receipt of such notice. A party given notice of a claim for which the other party expects to be defended and indemnified shall have thirty (30) days in which to either assume control of the defense or provide a reasonable explanation of why such party is not obligated to defend the claim pursuant to this Agreement; the party seeking indemnification in such instance may begin to defend the claim on its own, subject to reimbursement of all such expenses by the other party upon the other party's admission that such claim is that party's responsibility, or upon the determination by a judge or arbiter (in accordance with the dispute resolution provisions below) that the party was responsible for the defense of the claim. The party seeking indemnification shall have the right to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the indemnifying party. The indemnifying party shall not, without the prior written consent of the indemnified party, agree to the settlement, compromise or discharge of such third-party claim if such settlement, compromise or discharge would require that the indemnified party: (a) enter into any license agreement, cross-license agreement, settlement, covenant-not-to-sue or similar arrangement with the indemnifying party or any third party; (b) admit to infringement, misappropriation or misuse of any third party's intellectual property; or (c) otherwise undertake or agree not to undertake any activity or business of the indemnified party.

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| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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12. **<u>Sale of Products Enjoined</u>**. Should the use of any Products and/or NPI Products be enjoined, or in the event the indemnifying party desires to minimize its liabilities under this Section, then in addition to its indemnification obligations set forth in this Section, the indemnifying party may either substitute a fully equivalent product or process (as applicable) not subject to such injunction or possible liability, modify such Product or process so that it no longer is subject to such injunction or possible liability, or obtain the right to continue using the Product or process in question. In the event that any of the foregoing remedies cannot be effected on commercially reasonable terms, then all accepted purchase orders and the current Forecast shall be considered cancelled and Customer shall purchase all Products and partially completed Products which Flex is not enjoined from selling, Inventory and Special Inventory as provided in this Agreement for the amount set forth in the Fee List (or cost for any applicable partially completed Product) or Standard Cost plus MOH for any such other Inventory and Special Inventory and shall further pay Flextronics the cost and expenses set forth in Section **‎**6.3(b) above. Any changes to any Products or process must be made in accordance with this Agreement. Notwithstanding the foregoing, in the event that a third party files an infringement complaint but does not obtain an injunction, the indemnifying party shall not be required to substitute a fully equivalent product or process or modify the Product or process if the indemnifying party obtains an opinion from competent patent counsel reasonably acceptable to the other party or otherwise provides reasonable assurances that such Product or process is not infringing or that the patents alleged to have been infringed are invalid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. **LIMITATIONS OF LIABILITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1. **<u>Bargained-For Exchange</u>**. The parties agree that the limitations and exclusive remedies set forth in this Agreement represent the negotiated allocations of risk between the parties and are reflective of the pricing and bargained-for exchange represented herein. Other than as expressly set forth in this Agreement, and subject to the terms and conditions of this Agreement, including the limitations set forth below, Customer acknowledges that Customer has not relied on any representations by Flex with respect to the Products, the NPI Products and/or the Services or Flex's performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2. **<u>Exclusions of Certain Forms of Damages</u>**. Except with respect to a party's obligations of indemnification as set forth in this Agreement or a breach of a party's obligations of confidentiality hereunder, in no event shall either party be liable to the other (or its Affiliates) for

 

&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 indirect, incidental, consequential, special or punitive damages of any kind or nature arising
 out of or relating to this Agreement, performance of any Services or the Sale of Products,

(ii) lost
 profits, loss of use, data, business, opportunity or profits, lost revenues

(iii) damages
 resulting from value added to the Product by Customer,

(iv) costs
 for procurement or manufacture of substitute Product by Customer, or for the value of the
 internal time of Customer's employees to remedy a breach

whether any such liability is asserted on the basis of contract, tort (including without limitation the possibility of negligence or strict liability), or otherwise, even if the party has been warned of the possibility of any such loss or damage, and even if any of the limited remedies in this Agreement fails of its essential purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3. <u>Limitations on Liability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With the exception of breaches of Sections ‎8, ‎11 or ‎14.1, termination of this Agreement and the settling of accounts in the manner set forth in Section ‎10.3 shall be the exclusive remedy of the parties for breach of this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except with respect to (i) Flex's obligations of indemnification as set forth in this Agreement or (ii) a breach of Flex's obligations of confidentiality hereunder, then notwithstanding anything to the contrary in this Agreement, Flex's total liability to Customer hereunder shall be subject to an aggregate cap in accordance with the following: the total, aggregate and cumulative liability of Flex, if any, for damages for all claims under this Agreement of any kind whatsoever, regardless of legal theory, and whether arising in tort or contract, shall not exceed at any given time an amount determined as follows: one percent (1%) multiplied by the total amounts received by Flex from Customer on account of the sale of products hereunder in the immediately preceding twelve (12) months less any claim(s) previously paid by Flex to Customer during the aforementioned 12-month period, or USD50,000 (fifty thousand US Dollars), whichever is higher. Notwithstanding the foregoing, the cap set forth in the previous sentence shall not apply to limit (i) Customer's obligation hereunder for payments for Product, materials or other charges, (ii) a party's obligation hereunder to indemnify the other party or (iii) Flex's warranty obligations to repair, replace or refund pursuant to Section ‎8.2(b).

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| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. **LICENSES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1. Customer hereby grants Flex a non-exclusive license during the term of this Agreement to use Customer's patents, trade secrets and other intellectual property as necessary to perform Flex's obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2. Except as otherwise specifically provided in this Agreement, each party acknowledges and agrees that (i) no licenses or rights under any of the intellectual property rights of the other party are given or intended to be given to such other party and (ii) all rights, title and interests in and to the Product and all intellectual property related thereto vest solely in Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. **MISCELLANEOUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1. **<u>Confidentiality</u>**. Each party shall not use any Confidential Information of the disclosing party for any purposes or activities other than in support of such party's obligations established in this Agreement. Except as otherwise specifically permitted herein or pursuant to written permission of the disclosing party, neither party shall disclose or facilitate disclosure of Confidential Information of the disclosing party to any third party, except that the receiving party may disclose such Confidential Information to (i) those of its Affiliates and their respective employees, consultants, and other agents who need to know such Confidential Information for carrying out the activities contemplated by this Agreement and/or (ii) third party suppliers or vendors for the purpose of obtaining price quotations; provided, however, that in either case, the recipient has agreed in writing to confidentiality terms that are no less restrictive than the requirements of this Section. Notwithstanding the foregoing, the receiving party may disclose Confidential Information of the disclosing party pursuant to a required court order, subpoena or other governmentally-required process; however, in such circumstance, the receiving party shall, to the extent reasonably feasible and permissible: (a) give the disclosing party prompt notice of the receiving party's receipt or knowledge of such required disclosure; and (b) provide the disclosing party a reasonable opportunity to oppose such process or to obtain a protective order at the disclosing party's expense. Subject to each party's right to maintain copies of Confidential Information in accordance with such party's reasonable record-keeping requirements, Confidential Information of the disclosing party in the custody or control of the receiving party shall be promptly returned or destroyed upon the earlier of (i) the disclosing party's written request, or (ii) termination of this Agreement. Confidential Information disclosed pursuant to this Agreement shall be maintained confidential for a period of five (5) years after the later of (a) termination of this agreement, and (b) disclosure thereof except any Confidential Information deemed a trade secret which shall remain subject to the non-use and non-disclosure obligations set forth herein for an unlimited period of time as long as it remains a trade secret.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2. **<u>Use of Flex or Customer Name is Prohibited</u>**. Neither party may use the other party's name or identity or any other Confidential Information in any advertising, promotion or other public announcement without the prior express written consent of the other party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3. **<u>Construction; Entire Agreement; Severability</u>**. The terms and conditions as set forth in this Agreement have been arrived at after mutual negotiation, and it is the intention of the parties that its terms and conditions not be construed against any party merely because the Agreement was prepared by one of the parties. Subject to the terms of this Agreement, this Agreement, all Exhibits and attachments hereto and all Specifications constitute the entire agreement between the parties with respect to the transactions contemplated hereby and supersede all prior agreements and understandings between the parties relating to such transactions. If the scope of any of the provisions (or any portion of a provision) of this Agreement is too broad to permit enforcement to its full extent, then such provisions shall be enforced to the maximum extent permitted by law, and the parties agree that such scope may be judicially modified accordingly and that the whole of such provisions of this Agreement shall not thereby fail, but that the scope of such provisions shall be curtailed only to the extent necessary to conform to the law.

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| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4. **<u>Amendments; Waiver</u>**. This Agreement may be amended only by written consent of both parties. The failure by either party to enforce any provision of this Agreement shall not constitute a waiver of future enforcement of that or any other provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5. **<u>Independent Contractor</u>**. Neither party shall, for any purpose, be deemed to be an agent of the other party and the relationship between the parties shall only be that of independent contractors. Neither party shall have any right or authority to assume or create any obligations or to make any representations or warranties on behalf of any other party, whether express or implied, or to bind the other party in any respect whatsoever.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6. **<u>Insurance</u>**. Each party agrees to maintain appropriate insurance to cover such party's respective risks and liabilities under this Agreement with coverage amounts commensurate with such risks and liabilities, taking into account each party's capability for self-insurance. Without derogating from the above, Customer specifically agrees to maintain insurance coverage for any property and/or equipment (including without limitation Customer Tooling), machinery, inventory (including such inventory that might have been provided by Customer at no cost or value to Flex) and/or finished Products or Materials that the title and/or risk of loss of which passes to Customer pursuant to this Agreement and/or which is stored at the premises of Flex. All of Customer's insurance policies (whether listed above or not) shall include a waiver of subrogation clause towards Flex and/or its clients and/or managers and/or employees and/or any company within the Flex group of companies and/or any party to whom Flex is obligated in writing to provide a waiver of subrogation. The waiver shall not apply towards a person acting maliciously to cause loss or damage. Customer agrees to maintain and to keep in force during the term of this Agreement and until the end of the Warranty Period of the last Product to be subject to a Warranty the insurance coverage required herein. Upon request Customer shall furnish certificates of insurance within thirty (30) days from the date such a request has been provided and shall address the certificate of Insurance to Flex.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7. **<u>Force Majeure</u>**. In the event that either party is prevented from performing or is unable to perform any of its obligations under this Agreement (other than a payment obligation) due to any act of God, acts or decrees of governmental or military bodies, fire, casualty, flood, earthquake, hostilities, war, strike, lockout, epidemic, destruction of production facilities, riot, insurrection, Materials unavailability, the failure of equipment or tooling provided by Customer except to the extent such failure was caused by Flex, or any other cause beyond the reasonable control of the party invoking this Section (collectively, a "**Force Majeure**"), and if such party shall have used its commercially reasonable efforts to mitigate its effects, such party shall give prompt written notice to the other party, its performance shall be excused, and the time for the performance shall be extended for the period of delay or inability to perform due to such occurrences. Regardless of the excuse of Force Majeure, if such party is not able to perform within ninety (90) days after such event, the other party may terminate the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.8. **<u>Successors, Assignment</u>**. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors, assigns and legal representatives. Neither party shall have the right to assign or otherwise transfer its rights or obligations under this Agreement except with the prior written consent of the other party, not to be unreasonably withheld other than in a framework of a merger or a sale of all or substantially all of its assets or shares. Notwithstanding the foregoing, Flex may subcontract or assign some or all of its rights and obligations under this Agreement to an Affiliate of Flex, or to a third party financial institution for the purpose of receivables financing (e.g., factoring).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9. **<u>Notices</u>**. All notices required or permitted under this Agreement shall be in writing and shall be deemed received (a) when delivered personally; (b) when sent by confirmed facsimile; (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; (d) when acknowledged as received via email; or (e) two (2) days after deposit with a commercial overnight carrier. All communications shall be sent to the addresses set forth above or to such other address as may be designated by a party by giving written notice to the other party pursuant to this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10. **<u>Disputes Resolution; Waiver of Jury Trial</u>**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement shall be governed by and interpreted in accordance with the laws of the State of Israel, exclusive of conflict or choice-of-law rules. The parties specifically agree that the 1980 United Nations Convention on Contracts for the International Sale of Goods, as may be amended from time to time, shall not apply to this Agreement. The parties hereby consent to the personal and exclusive jurisdiction and venue of the competent courts located in Tel-Aviv, Israel.

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|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the foregoing, except with respect to enforcing claims for injunctive or equitable relief, any dispute, claim or controversy arising out of or relating in any way to this Agreement, any other aspect of the relationship between Flextronics and Customer or their respective affiliates and subsidiaries, the interpretation, application, enforcement, breach, termination or validity thereof (including, without limitation, any claim of inducement of this Agreement by fraud and a determination of the scope or applicability of this agreement to arbitrate), or its subject matter (collectively, "**Disputes**") shall be determined by binding arbitration before one arbitrator. The arbitration shall be administered under the Israeli Arbitration Law in accordance with Substantive Israeli Law. The arbitrator shall be agreed to by the parties or, if no agreement can be reached, as shall be determined by the President of the Israeli Bar at the request of any party hereto. The arbitration shall be held in Tel-Aviv, Israel, and it shall be conducted in the English language. The parties shall maintain the confidential nature of the arbitration proceeding and any award, including the hearing, except as may be necessary to prepare for or conduct the arbitration hearing on the merits, or except as may be necessary in connection with a court application for a preliminary remedy, a judicial challenge to an award or its enforcement, or unless otherwise required by law or judicial decision. The arbitrator shall have authority to award compensatory damages only and shall not award any punitive, exemplary, or multiple damages, and the parties waive any right to recover any such damages. Judgment on any award in arbitration may be entered in any court of competent jurisdiction. Notwithstanding the above, each party shall have recourse to any court of competent jurisdiction to enforce claims for injunctive and other equitable relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of any dispute between the parties, whether it results in proceedings in any court in any jurisdiction or in arbitration, the parties hereby knowingly and voluntarily, and having had an opportunity to consult with counsel, waive all rights to trial by jury, and agree that any and all matters shall be decided by a judge or arbitrator without a jury to the fullest extent permissible under applicable law. To the extent applicable, in the event of any lawsuit between the parties arising out of or related to this Agreement, the parties agree to prepare and to timely file in the applicable court a mutual consent to waive any statutory or other requirements for a trial by jury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.11. **<u>Controlling Language</u>**. This Agreement is in English only, which language shall be controlling in all respects. All documents exchanged under this Agreement shall be in English.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.12. **<u>Counterparts and Exchange of Signatures</u>**. This Agreement may be executed in counterparts. The parties agree that electronically transmitted and reproduced signatures (including faxed pages, scanned copies of signatures and email acknowledgements) constitute acceptable exchange of authentic consent to the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.13. **<u>Set-off</u>**. Amounts due in connection with this Agreement by Flextronics to Customer may not be set off by Customer against any amount due by Customer to Flextronics except with Flextronics prior written consent. Flextronics may, at any time in its sole discretion, apply any amount that may be due and/or received from Customer, regarding which the Customer has not specified how it is to be applied, in credit of any Customer's liability, whether or not conditional, contingent and/or quantified.

[REST OF PAGE INTENTIONALLY LEFT BLANK – SIGNATURES FOLLOW]

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|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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IN WITNESS WHEREOF, the parties have caused this Manufacturing Services Agreement to be duly executed by their duly authorized representatives as of the Effective Date.

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| | |
|:---|:---|
| **Cust2mate Ltd.:** | **Flextronics (Israel) Ltd.,:** |
| Signed: | Signed: |
| Print Name: | Print Name: |
| Title: | Title: |

---

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| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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**Exhibit 1**

**Definitions**

Unless defined elsewhere in this Agreement, the following terms have the following meanings:

---

| | |
|:---|:---|
| "**Affiliate**" | means any corporation, partnership, joint venture or other legal entity that a party to this Agreement controls, is under common control with, or is controlled by, where "control" means the ownership of more than fifty percent (50%) of the voting equity in such entity or otherwise the ability to direct the management of such entity. |
| "**Aged Inventory**" | means either of any Product, partially completed Product, Inventory or Special Inventory, or some or all, for which there has been zero or insignificant consumption over the past four (4) months, which includes any particular item that Flex has had on hand for more than four (4) months. |
| "**Approved Vendor List**" **or** "**AVL**" | means the list provided by Customer or Flex, as the case may be and approved by Customer, that determines the vendors from which Flex must purchase Materials, and may include, but is not limited to, original equipment manufacturers, resellers, distributors, or brokers. |
| **"Approved Manufacturer List" or "AML"** | means the list approved by Customer, which may be specified in the bill of materials for a Product, that determines the approved original equipment manufacturer for Materials. |
| "**Confidential Information**" | means (a) all information concerning the fees or costs for Products and Inventory other than Customer Controlled Materials and (b) any other information that is marked "Confidential" or the like or, if delivered verbally, confirmed in writing to be "Confidential" within thirty (30) days of the initial disclosure. Confidential Information does not include information that (i) the receiving party can prove it already knew at the time of receipt from the disclosing party free of any obligations of confidentiality; (ii) has come into the public domain without breach of confidence by the receiving party; (iii) was received from a third party without restrictions on its use; (iv) the receiving party can prove it independently developed without use of or reference to the disclosing party's data or information; or (v) the disclosing party agrees in writing is free of such restrictions. |
| "**Customer Controlled Materials**" | means those Materials provided by Customer or by vendors with whom Customer has a commercial relationship. |
| "**Customer Controlled Materials**<br> **Terms**" | means the terms and conditions that govern the purchase of Customer Controlled Materials. |
| "**Customer Tooling**" | Shall have the meaning set forth in Section ‎2.3 above. |
| "**Economic Order Inventory**" | means Materials purchased in quantities above the required amount for purchase orders and the Binding Forecast in order to achieve price targets for such Materials the purchase of which has been approved in writing and in advance by Customer. |
| "**Environmental Regulations**" | means any applicable hazardous substance content laws and regulations including, without limitation, those related to or implementing EU Directive 2011/65/EU about the Restriction of Use of Hazardous Substances (RoHS) and (EC 1907/2006) dealing with the registration, evaluation, authorization and restriction of chemical substances (REACH). |

---

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|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

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| | |
|:---|:---|
| "**Excess Inventory**" | means either of any Product, partially completed Product, Inventory or Special Inventory, or some or both, owned by Flex that is not required for consumption to satisfy the next thirty (30) days of demand for Products under the then-current purchase order(s) and Forecast. |
| "**Governmental Change**" | has the meaning set forth in Section ‎4.4(b). |
| "**Inventory**" | means any Materials that are procured by or on-order with Flex in accordance with the applicable Lead Time for use in the manufacture of Products and/or NPI Products, as applicable, pursuant to a purchase order or Binding Forecast from Customer. |
| "**Lead Time**" | means the Materials Procurement Lead Time plus the manufacturing cycle time required from the delivery of the Materials at Flex's facility to the completion of the manufacture, assembly and test processes. |
| "**Material Overhead Costs**" **or** "**MOH**" | means Flex's fee for acquiring, managing and storing Materials, which may be expressed as a percentage of the Standard Cost of the Materials, as such percentage is set forth in the applicable bill of materials or other document; if no MOH is specified in the applicable documents, then the MOH shall be equal to: (i) ten percent (10%) of the Standard Cost of all Materials on hand at Flex; and (ii) five percent (5%) of the cost of all Materials on order and not cancelable. |
| "**Materials**" | means components, parts, raw material and subassemblies (including without limitation work-in-process items) that comprise the Product and/or NPI Product, as applicable, and that appear on the bill of materials for such product. |
| "**Materials Procurement Lead Time**" | means, with respect to any particular item of Materials, the longer of (a) the lead time to obtain such Materials as recorded on Flex's system of record or (b) the actual lead time. |
| "**Minimum Order Inventory**" | means Materials purchased in excess of requirements for purchase orders and Binding Forecast because of minimum lot sizes required by the vendor the purchase of which has been approved in writing and in advance by Customer. |
| "**Monthly Charges**" | means a monthly finance carrying charge of one and one-half percent (1.5%), and storage and handling charge of one-half percent (0.5%). |
| **"NRE Charges**" | means Product-specific tooling, equipment or software and other reasonably necessary non-recurring set-up, tooling or similar expenses as set forth in Flex's pricing quotations. |
| "**NPI Product**" | means first articles, prototypes, pre-production units, test units or other similar products. |
| **"NPI Services"** | means any new product introduction (NPI) or product prototype services, whether or not related to the Products. |
| "**Obsolete Inventory**" | means either of any Product, partially completed Product, Inventory or Special Inventory, or some or all, that is any of the following: (a) removed from the bill of materials for a Product by an engineering change; (b) no longer on an active bill of materials for any of Customer's Products; or (c) on-hand with Flex in accordance with the agreed lead times but not required for consumption to satisfy the next one hundred eighty (180) days of demand for Products under the then-current purchase order(s) and/or Binding Forecast (as applicable). |

---

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| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

---

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| | |
|:---|:---|
| "**Products**" | means an item in its completed form as described in written and agreed upon Specifications and that is the object of the Services. |
| "**Quality Agreement**" | shall mean the quality agreement mutually agreed to by the parties, which is incorporated herein by reference and attached as **<u>Exhibit A</u>** hereto. |
| "**Services**" | has the meaning set forth in Section ‎2.1(a). |
| "**Special Inventory**" | means any Minimum Order Inventory, Economic Order Inventory, safety stock and other mutually-agreed Inventory acquired by Flex in excess of the Binding Forecast to support flexibility or demand requirements. |
| "**Specifications**" | means the agreed detailed instructions provided by Customer defining each Product, which shall include, without limitation: bills of materials, designs, schematics, assembly drawings, process documentation, test specifications, packaging instructions, the Quality Agreement (as defined above), current revision number, and an Approved Vendor List. |
| **"Standard Cost**" | means, as applicable, (a) the agreed cost of Materials represented on the bill of materials current at the time such Materials are acquired; or (b) the agreed value of any Services performed on work-in-progress at the time such Services are performed- all , adjusted in accordance with Section ‎4.4, if applicable. |
| "**Taxes**" | means federal, state and local excise, sales, use, VAT, duties, and transfer taxes and similar charges. "Taxes" do not include taxes based on the net income of Flex or on real property owned by Flex. |

---

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| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

---

**Exhibit A**

**Quality Agreement**

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| | |
|:---|:---|
| ![](ex4-3_001.jpg) | FLEX CONFIDENTIAL |

---

**Exhibit** ‎**4.4(a)**

**Fee List**

To be attached or incorporated by reference.

## Exhibit 4.4

**Exhibit 4.4**

![](ex4-4_001.jpg)

![](ex4-4_002.jpg)

![](ex4-4_003.jpg)

![](ex4-4_004.jpg)

![](ex4-4_005.jpg)

![](ex4-4_006.jpg)

![](ex4-4_007.jpg)

![](ex4-4_008.jpg)

![](ex4-4_009.jpg)

![](ex4-4_010.jpg)

![](ex4-4_011.jpg)

![](ex4-4_012.jpg)

## Exhibit 4.5

**Exhibit 4.5**

**INDEPENDENT CONTRACTOR AGREEMENT**

March 15, 2022

Dear Mr. Gadi Levin, Ninety Six Capital Ltd:

This will confirm the terms of your company's engagement as Consultant for A2Z Smart Technologies Corp. (the "**Company**") effective March 15, 2022 (the "**Effective Date**") on the following terms and conditions (the "**Agreement**"):

1. **Defined Terms:** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Person"** means an individual, partnership, limited partnership, limited liability partnership,
 corporation, limited liability company, unlimited liability company, joint stock company,
 trust, unincorporated association, joint venture or other entity or governmental entity,
 and pronouns have a similarly extended meaning;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **"Business"** means any business the Company is engaged in **;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **"Customers"** means all Persons who are at this date or were at any time during the Term customers
 of the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **"Prospective Customers"** means all Persons canvassed or solicited at any time during the Term
 in connection with the Business.

2. **Services**:
 As a consultant you will perform such services as may be mutually agreed to between you and
 the Company (the "**Services**") from time to time. We have agreed that you
 will perform the Services described in Schedule "A" hereto.

3. **Standard of Care**. You will provide the Services to the best of your ability and in a competent
 and professional manner. You represent and warrant that you have sufficient expertise and
 resources, and the ability, to provide the Services. You will act in good faith and in the
 best interests of the Company in carrying out the Services.

4. **Term**:
 The term of this Agreement will commence as of the Effective Date and unless sooner terminated
 as provided herein, will continue indefinitely (the "**Term** ").

5. **Conflict of Interest**: You represent that (a) there are, as of the date hereof, no conflicts of
 interest or fiduciary obligations, written or unwritten, which would affect your ability
 to provide the Services; and (b) during the Term of this Agreement, you will not enter into
 any agreement, or undertake any other course of action which may reasonably be expected to
 give rise to a conflict of interest on your part or materially impair your ability to provide
 the Services hereunder.

6. **Direction & Control**: You will be solely responsible for determining the means and methods of
 performing the Services within the overall standards and policies established by the Company.
 You will ensure that you devote adequate time and attention in order to provide the Services
 as required herein provided, you are under no obligation to provide the Services for any
 particular number of hours a day, or for any particular number of days a week. Further, it
 is understood and agreed between the parties that you are not limited in providing services
 to any other Person during the term of this Agreement provided that the provision of such
 Services does not breach the provisions of this Agreement. Except as expressly set out herein
 to the contrary, you will provide all necessary tools, equipment and labour related to the
 provision of the Services.

7. **Fees**:
 In consideration of the Services rendered hereunder, you will be paid US$7,000 per month.

8. **Independent Status**: The parties agree that you are a self-employed independent contractor, and that
 you are not an employee or agent of the Company and this Agreement will not create any partnership,
 joint venture, employer/employee, principal/agent, master/servant or any other relationship
 between the parties except that of independent contractor. Accordingly, the Company has no
 responsibility to make deductions for, or to pay, benefits, health, welfare and pension costs,
 withholdings for income taxes, employment insurance premiums, Workers' Compensation
 premiums, Canada Pension Plan premiums, payroll taxes, disability insurance premiums or any
 other similar charges with respect to the payment for the Services.

9. **Expenses:** As an independent contractor, you are solely responsible for any and all expenses incurred
 in providing the Services to the Company. The Company is not responsible for reimbursing
 you for any expenses.

Notwithstanding the above, the Company shall reimburse you for pre-approved expenses reasonably, actually and properly incurred by you in the performance of the Services. All such expenses must be pre-approved by the Company in writing and you must furnish to the Company written statements and receipts in support of such expenses, as and when required by the Company.

10. **Confidentiality.** You agree that you will maintain as confidential all information obtained under or in
 connection with this Agreement and will not use or disclose such information to any third
 party without prior consent of the Company. You agree to take no action that may cause any
 such information to lose its character as confidential information. This clause extends to
 all information disclosed to you prior to this Agreement. These obligations of confidentiality
 will survive the expiration or any termination of this Agreement. All documents, work papers,
 software, reports and other items obtained from the Company in the course of fulfilling the
 terms of this Agreement are proprietary and confidential information of the Company. Upon
 the expiration or earlier termination of this Agreement, or whenever requested by the Company,
 you will immediately deliver to the Company all such documents, work papers, software, reports
 and other items.

11. **Non-Solicitation of Customers**. During the Term and for a period of six months thereafter, you shall not,
 on your behalf or on behalf of or in connection with any other Person, directly or indirectly,
 in any capacity whatsoever including as an employer, employee, principal, agent, joint venturer,
 partner, shareholder or other equity holder, independent contractor, licensor, licensee,
 franchiser, franchisee, distributor, consultant, supplier or trustee or by or through any
 Person 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;(a) canvass or solicit the business of, or procure or assist the canvassing or soliciting of the business of, any Customer or Prospective Customer;

&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) accept, or procure or assist the acceptance of, any business from any Customer or Prospective Customer; 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) supply, or procure or assist the supply of, any goods or services to any Customer or Prospective Customer.

12. **Termination**:
 This Agreement and the relationship created under this Agreement may be terminated by you
 or the Company, as the case may be prior to the expiry of the Term, upon the occurrence of
 any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) By
 either party upon the material breach or default by the other party of any provision of this
 Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By
 either party upon giving 30 days' written notice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Immediately
 upon your death; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At
 any other time upon written agreement of the parties.

Following the termination of this Agreement, you will be paid any outstanding Base Fees owing to the effective date of termination. You agree that you accept payment under this paragraph in full and final satisfaction of all claims in respect of Services rendered and that you have no claim to notice or payment in lieu of notice in respect of the termination of your engagement.

13. **Privacy and Personal Information**: You acknowledge that as a result of your engagement, you may
 become aware of personal information (as such term is defined in the *Personal Information Electronic Documents Act, 2000*) which is collected, used or disclosed by the Company.
 You agree that you will not, without the prior written consent of the Company, disclose or
 make available any such personal information to any other person or entity except in accordance
 with the Company's express instructions. You agree that any personal information provided
 to you by the Company will only be used by you for such purposes as are specified therein
 and for no other purpose. You agree to execute any such further agreements required to evidence
 your agreement in respect thereof.

14. **General**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 Agreement constitutes the entire agreement between the parties with respect to the subject
 matter hereof and the parties acknowledge and agree that its execution has not been induced
 by, nor do either of the parties rely upon or regard as material, any representations or
 writings whatsoever not incorporated and made a part of this Agreement. This Agreement supersedes
 any prior agreements understandings, negotiations and discussions, whether oral or written,
 between the parties with respect to the subject matter hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No
 amendment, change or modification of this Agreement will be valid unless in writing signed
 by the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This
 Agreement will be governed by and construed in accordance with the laws of the Province of
 Ontario and the laws of Canada applicable therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 any provision of this Agreement will be determined by any court of competent jurisdiction
 to be invalid and unenforceable to any extent, the remainder of this Agreement will not be
 affected by such invalidity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) This
 Agreement is personal to you and may not be assigned.

15. **Acknowledgment:** By entering into this Agreement, you acknowledge and agree that you have read and understand
 your obligations under this Agreement, agree to all of the terms hereof and have been given
 the opportunity to seek independent legal advice in respect of the same. You understand and
 agree that you are an independent contractor and are not and will not be an employee of the
 Company. You agree that the Company will not be obligated to make any payments to you upon
 termination of this Agreement except in respect of Services rendered to the date of termination.

To confirm your acceptance of the terms and conditions of this Agreement, please sign in the space indicated on the following page and return to the undersigned.

---

| |
|:---|
| Yours very truly, |
| */s/ Bentsur Joseph*  |
| Bentsur Joseph, CEO |

---

AGREED TO AND ACCEPTED this 15 day of March 2022.

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| | |
|:---|:---|
| By: | */s/ Gadi Levin*  |
|  | Mr. Gadi Levin, Ninety Six Capital Ltd |

---

**SCHEDULE "A"<br> SERVICES**

Consultant:

1. CFO services

## Exhibit 4.6

**Exhibit 4.6**

***To be printed on the Company's letterhead***

To: Gadi Graus Date: November 1, 2022

Dear Gadi,

Whereas, Cust2mate Ltd. (the "**Company**") wishes to employ you according to the provisions of this letter agreement (this "**Agreement**"), and you desire to be so employed by the Company.

Now, therefore, you and the Company hereby agree to the following terms and conditions:

**1.**  **<u>Position, Scope of Position and Working Hours</u>** 

1.1 You
 shall be employed by the Company in the position, scope of position and days and hours of
 work as set forth in Annex A attached hereto and incorporated herein ("  **<u>Annex A</u>** "), and your responsibilities, duties and tasks of such employment shall be
 determined and assigned to you, from time to time, by the supervisor set forth in  **<u>Annex A</u>** (the "**Supervisor**") or by any person that may be appointed by
 the Supervisor.

1.2 You
 shall perform your duties hereunder at the Company's facilities in Israel; however,
 it is hereby agreed that, from time to time, you may be required to work remotely from your
 home residence or elsewhere, as shall be determined by the Company according to its sole
 discretion and according to the Company's policy in this respect, as shall be in effect
 from time to time. In addition, you acknowledge and agree that the performance of your duties
 hereunder may require domestic and/or international travel.

**2.**  **<u>Term and Termination</u>** 

2.1 The
 term of your employment shall commence on the date set forth in  **<u>Annex A</u>** (the
 "**Effective Date** "), and shall continue for an unlimited term though in
 any event for at least a period of 12 months, unless terminated either by you or by the Company
 at any time and for any reason after the lapse of said 12 month period, by providing prior
 written notice as set forth in  **<u>Annex A,</u>** except for in the event of a Termination
 for Cause.

2.2 In
 the event of any termination which is not a Termination for Cause, the Company shall be entitled
 to terminate your employment immediately or at any time during the prior notice period referenced
 above, *provided however*, that in such an event the Company shall pay you your applicable
 prior notice redemption.

In the event that you shall voluntarily resign, without providing the Company the full prior notice as set forth in **<u>Annex A</u>**, you shall be required to pay the Company the value of the prior notice not provided by you, and said value shall be deemed a debt of you towards the Company. Notwithstanding the aforesaid, the Company shall be entitled to deduct and set-off any amounts due to it in this respect from any amounts payable or due to you by the Company and you irrevocably instruct the Company to make such deductions and set-offs and confirm that your consent is in accordance with the provisions of the Wage Protection Law, 5718-1958.

2.3 Notwithstanding
 anything to the contrary in this Agreement, the Company shall be entitled to terminate your
 employment immediately, without prior notice or the redemption thereof, in the event that
 you commit any of the following: embezzlement; theft; any other criminal offence involving
 moral turpitude; breach of a fiduciary duty or duty or loyalty; a willful failure to perform
 your responsibilities or duties, a material breach of this Agreement, including without limitation
 a breach of any of your undertakings as set forth in Annex B attached hereto and incorporated
 herein ("  **<u>Annex B</u>**") and/or your representation in Section ‎4.10
 below; and/or any other act or omission which under applicable law enable(s) entire and/or
 partial denial of severance payments or prior notice or redemption thereof ()"**Termination for Cause** ").

2.4 You
 undertake that in the event you cease to work for the Company, for any reason whatsoever,
 you will immediately upon such termination transfer any and all assets and/or other property
 of the Company that may be in your possession, including without limitation all Company cars,
 telephones, computers, employee identification cards, keys, equipment, property, information
 and documents held and/or prepared by you in the framework of your employment with the Company
 to whomever the Company shall determine, in an organized, timely and appropriate manner.
 You further undertake that upon such termination, you will cease to present yourself as a
 Company employee in any and all media platforms, including internet websites, social networks,
 and/or social applications.

2.5 It
 is hereby clarified that if any asset and/or other property of the Company is placed at your
 disposal, you have limited rights with respect to the use of such an item during and for
 the purpose of your employment with Company only, and you shall not have the right to any
 lien, security interest or encumbrance with respect thereto and you hereby waive all such
 rights.

**3.**  **<u>Compensation and Benefits</u>** 

3.1 <u>Salary</u> 

You shall be entitled to a monthly salary in a gross amount as set forth in **<u>Annex A</u>** (the "**Salary**"). The Salary shall be paid to you by the 9<sup>th</sup> (ninth) day of the month following the month for which it is due.

It is hereby explicitly represented and clarified that your position under this Agreement is a position that requires a special level of fiduciary duty to the Company; accordingly, the Work and Rest Hours Law-1951 shall not apply to you, and you shall not be entitled to any additional payments (except for the Salary set forth in **<u>Annex A)</u>** for over-time hours or work performed during rest days.

3.2 <u>Vacation, Recreation Pay, Sick Leave and Reserve Duty</u> 

(a) You
 shall be entitled to such a number of paid vacation days annually as set forth in  **<u>Annex A</u>** . Procedures of the utilization and redemption of vacation days shall be as prescribed
 by applicable law and in coordination with the Supervisor with reasonable consideration to
 the needs of the Company. Notwithstanding anything to the contrary in this Agreement, you
 shall make all efforts to use your entire allotment of annual vacation days by the end of
 any calendar year, however, if you are unable to do so, you shall be entitled to accumulate
 the unused balance of such vacation days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) You
 shall be entitled to "dmei havra'a" ()"**Recreation Pay** "),
 and sick days as set forth in  **<u>Annex A</u>** .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) You
 shall be entitled to payment during reserve duty in accordance with the provisions of applicable
 laws.

3.3 <u>Pension and Severance Pay</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company shall pay, and shall deduct from the Salary, on a monthly basis, as premiums for
 a manager's insurance policy or pension fund or a combination of the two (the "**Policy** "),
 chosen by you, amounts equal to the percentages of the Salary set forth in  **<u>Annex A</u>** .

The sums contributed by you shall be deducted from your Salary at source, and you hereby irrevocably instruct and authorize the Company to make such deductions and transfers to the Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 the above, you are entitled to instruct the Company in writing to distribute the payments and contributions described above among different
 and various policies and saving plans, at your discretion, so long as the Company's total costs and liabilities in connection
 with said payments and contributions (and the funds and rights associated with and/or accrued therewith) will not exceed the amounts
 referenced herein; all subject to any applicable law and/or instructions and/or guidelines of the Ministry of Finance and/or all the
 by-laws and regulations of any fund and/or the provisions of the Extension Order regarding the enlargement of pension contributions,
 all as shall be in effect from time to time.

(c) It
 is hereby expressly agreed that the Company's contribution for severance pay of eight and one-thirds percent (8.33%) together
 with any linkage, interest or other profit derivative thereof shall be **instead of** your severance compensation, should you be
 entitled thereto, such that upon release of the Policy to you, no additional calculations shall be conducted regarding the matter of
 severance pay and no additional payments shall be made by the Company to you.

You and the Company hereby adopt the provisions of the "General Order and Confirmation Regarding Payments of Employers to Pension Funds and Insurance Funds instead of Severance Pay" pursuant to Section 14 of the Severance Pay Law **-** 1963, attached hereto as **<u>Annex A-1</u>**, or any amended provisions of said General Order as shall be in effect from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Company waives all rights to have its payment to the Policy refunded, unless your right to severance payment has been negated, in a
 decision of a competent court, pursuant to Section 16 or 17 of the Severance Pay Law **-** 1963, and to the extent so negated, or
 in the event in which you shall have withdrawn funds from the Policy other than for an 'entitling event' (i.e. death, invalidity,
 or retirement at the age of 60 or older).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) You
 shall bear any and all taxes which may apply with respect to any contribution which exceeds the recognized tax ceilings.

3.4 <u>Study Fund</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company shall contribute, and shall deduct from your Salary, on a monthly basis, towards
 a "keren hishtalmut" ()"**Study Fund** "), chosen by you, amounts
 equal to the percentages of the Salary set forth in  **<u>Annex A</u>** . The sums contributed
 by you shall be deducted from your Salary at source, and you hereby irrevocably instruct
 and authorize the Company to make such deductions and transfer to the Study Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon
 the termination of your employment with the Company for any reason whatsoever, the Company
 shall release to you all the amounts accumulated in the Study Fund.

3.5 <u>Car Allowance /Leased Car</u> 

During the term of your employment, you shall be entitled to car allowance or a leased car, at your discretion, in accordance with the terms set forth in **<u>Annex A</u>**.

3.6 <u>Mobile Phone Expenses Reimbursement</u> 

You shall be entitled to reimbursement of mobile phone expenses as set forth in **<u>Annex A</u>**.

**4.**  **<u>Obligations and Undertakings</u>** 

You undertake as follows:

4.1 You
 have the ability and the skills to carry out the duties of your position and perform the
 services as set forth in this Agreement, and you will devote your working time, attention,
 energies, talents, skills, knowledge and experience to the performance of your duties and
 responsibilities hereunder, as may be required.

4.2 During
 the term of your employment, you will not, without informing the Company, engage in any other
 professional or business activity or occupation, whether paid or unpaid; and you shall not
 receive, directly or indirectly, any compensation or benefit of any kind in connection with
 your work for the Company from any source except as set forth in this Agreement or as may
 be agreed with the Company; and you shall notify the Company immediately in writing regarding
 any matter in which you have a personal interest and which may potentially create a conflict
 of interest between you and your work for the Company.

4.3 You
 shall maintain confidentiality, assign intellectual property rights and you shall refrain
 from competing with and/or soliciting from the Company, including without limitation according
 to the undertakings attached hereto as  **<u>Annex B</u>** . Without derogating from the
 generality of the foregoing, you are aware that the terms of this Agreement are personal
 and specific to you and that the maintenance of their confidentiality is of utmost importance
 to the Company, and you undertake to maintain the confidentiality of the terms of your employment
 hereunder, and not disclose them to any other individual or entity. You understand that your
 agreement to these undertakings, and specifically to the provisions of Annex B, are a material
 inducement for the Company to enter into this Agreement.

4.4 The
 execution and delivery of this Agreement and the performance of the terms hereof: (a) shall
 not constitute a default under or breach of any agreement or other understanding to which
 you are a party or by which you are bound, including without limitation any confidentiality
 or non-competition agreement; (b) is not prohibited under any law, regulation or court order;
 and (c) does not require the consent of any other individual or entity.

4.5 You
 consent, of your own free will and although not required to do so under law, that the information
 in this Agreement and any information concerning you gathered by the Company, will be held
 and managed by the Company or on its behalf, including without limitation on databases according
 to law, and that the Company shall be entitled to transfer such information to third parties,
 in Israel or abroad. The Company undertakes that the information will be used and transferred
 for legitimate business purposes only, while undertaking reasonable commercial efforts to
 maintain your right to privacy.

4.6 You
 agree that the Company and any related entity may, for any business purpose (including security
 and protecting their legitimate interests), monitor your use of their Communications Systems
 and copy, transfer and disclose all electronic communications and content transmitted by
 or stored in such Communications Systems, regardless of the location or time of such use,
 in accordance with the Company's policy as shall be in effect from time to time. For
 the purposes of this Section, "Communications Systems" means Company's
 computer, laptop, computer systems, internet server, electronic database, hardware, software
 and e-mail account, whether under your direct control or otherwise. You may use the Company's
 systems for business purposes solely, and shall not make any personal use in them (unless
 you clearly define and mark your personal information stored in the Communications Systems
 as "Personal"), all subject to Company's policy as in effect from time
 to time. For personal use, you may use external e-mail services (i.e. Gmail, Yahoo mail etc.).
 Upon the Company's request, you shall transfer to the Company your log-on passwords
 and details to the Company's e-mail, computer and other accounts.

It is hereby clarified and agreed that the above mentioned shall apply also to mobile phone when used by you for business purposes in the framework of your position.

4.7 You
 hereby agree that the Company has a legitimate business need to place visible cameras at
 Company's offices for security, discipline and protection of the Company's Confidential
 Information (as such term is defined in Annex B); all subject to Company's policies
 in this respect as shall be in effect from time to time.

4.8 You
 shall comply with all laws and regulations governing your employment and the Company's
 policies, procedures and objectives as shall be in effect from time to time, including without
 limitation regarding the prevention of sexual harassment. Additionally, you shall cooperate
 with the Company in maintaining an authentic record of the number of working hours you shall
 perform.

4.9 You
 acknowledge that according to the applicable law and the Company's policy in this respect,
 you may choose to receive your pay slip for each calendar month electronically via your e-mail
 address. You are kindly requested to inform the Company of your selection thereof, by selecting
 your preferred option and executing the required consent form attached hereto, in original
 Hebrew form, as  **<u>Annex C.</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 You
 hereby represent that the entire information you provided the Company in the framework of
 your recruiting procedure (directly or through any third party) relating to yourself, your
 education, experience and/or skills and qualifications, including without limitation as detailed
 in your resume, is true, complete and accurate. You hereby declare and agree that breach
 of this Section ‎4.10 shall, *inter alia*, be deemed a fundamental breach of this
 Agreement.

4.11 You
 are aware and confirm that without your agreement to the undertakings of this Section 4,
 the Company would not enter this Agreement with you.

**5.**  **<u>Miscellaneous</u>** 

5.1 The
 preamble to this Agreement, and the annexes hereto, constitute integral parts of this Agreement.

5.2 The
 addresses of you or the Company for the purposes of this Agreement will be as set forth below,
 or as either you or the Company may advise the other in writing, and any notice which is
 sent via registered mail by you or the Company to the other party at such address, will be
 deemed received by the addressee 72 hours after it was sent for delivery at a post office
 in Israel. If notices shall be delivered by hand, they will be deemed received at the time
 at which they were delivered; and if by e-mail – 24 hours after it was sent.

5.3 Any
 modification of or addition to this Agreement shall be valid only if in writing and signed
 by both you and the Company.

5.4 This
 Agreement is personal and special and exclusively delineates the entire relationship between
 the Company and yourself, and contains all compensation and/or benefits and/or other conditions
 of any kind to which you are entitled from the Company, as an employee thereof, and supersedes
 all prior agreements, understandings, negotiations, promises, consents, undertakings, representations,
 warranties, oral or written, exchanged or signed between the Company and yourself with respect
 to the subject matter hereof. No general and/or special collective agreements apply to your
 employment hereunder. For the removal of any doubt and without derogating from the above,
 in the event that with respect to any of the matters addressed herein, provisions of law,
 collective agreements and/or extension orders shall, notwithstanding the above, apply to
 you, the provisions of this Agreement shall be deemed as coming in their stead, or at least,
 as being on account of said applicable provisions.

5.5 All
 taxes applicable to any and all compensation to be paid to you or benefits granted to you
 under this Agreement, including taxes which may apply with respect to any contributions which
 exceed the recognized tax ceilings **-** shall be borne exclusively by you. The Company
 shall deduct and withhold income tax, health insurance and national insurance from your gross
 income, and any other deductions or withholdings that may be required from time to time,
 pursuant to applicable law.

5.6 This
 Agreement is in lieu of the "Notice of Terms of Employment" pursuant to the Notice
 To the Employee and Job Candidate Law (Employment Conditions and Candidate Screening and
 Selection), 5762-2002.

5.7 This
 Agreement shall be interpreted and construed in accordance with the laws of the State of
 Israel. All disputes arising from this Agreement shall be exclusively commenced in the competent
 courts of the State of Israel.

We look forward to working with you.

Sincerely,

________________________

**Cust2mate Ltd.**

 *<u>/s/ Bentsur Jospeh</u>*

By: Bentsur Joseph

Position: Chairman

Company's Registration no. 5150212052

Company's Address: 94 Yigal Alon Street., Tel Aviv Israel

To indicate your understanding and acceptance of the provisions, terms and obligations set forth in this Agreement including without limitation the annexes hereto, please affix your name, ID number, address and signature in the space provided below and in the attached annexes.

Signature: *<u>/s/ Gadi Graus</u>*

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| | |
|:---|:---|
| Name: | Gadi Graus |
| ID: | 011961687 |
| Address: | 16/9 Amzalag Street, Tel-Aviv, Israel |
| Date: | November 1, 2022 |

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**<u>ANNEX A</u>**

**<u>to the Agreement between Gadi Graus and Cust2mate Ltd. (the "Company"), dated November 1, 2022</u>**

1. Personal
 Details Full
 Name: Gadi Graus I.D.
 Number: 011961687 Address:
 16/9 Amzalag St., Tel-Aviv, Israel Telephone
 Number (cell): +972-54-7788737

2. Position
 in the Company President

3. Supervisor The
 Company's Board of Directors.

4. Scope
 of Position As
 required

5. Days
 and Hours of Work The
 regular working week shall be 42 hours; the regular working days shall be Sunday–Thursday,
 of which 4 days shall consist of 8.6 net hours per day (not including a lunch break on your
 account), and one day, as shall be determined by the Company, shall consist of 7.6 net hours
 (not including a lunch break on your account). Saturday
 shall be your rest day.

6. Salary
 (gross) NIS  **<u>45,000</u>** per month. It
 is clarified and agreed that your Salary was calculated to include a special consideration, equal to 10% of the Salary, for your
 non-competition undertaking as detailed in  **<u>Annex B</u>** .

7. Vacation 24
 business days per annum The
 Company shall be entitled to set uniform dates for its employees' vacation, with respect to all or any part of the vacation
 days, as it shall deem fit, including during the intermediate holidays.

8. Car
 Allowance / Leased Car At
 your discretion, the Company shall either: (i)
 pay you a monthly car allowance in the amount of NIS 4,500 per month (gross) (the "**Car Allowance** "). The
 Car Allowance shall not constitute part of the Salary for any purpose whatsoever, including for purpose of calculating your social
 benefits. In
 addition and for the avoidance of doubt, it is hereby clarified that the Car Allowance shall be provided in lieu of any payment in
 respect of commuting expenses. (ii)
 place at your disposal a leased car of a model according to the Company's standards, for your business and personal use (the
 "**Car** "). All
 expenses incurred in connection with the use of the Car including insurance, maintenance, and repairs, shall be borne and paid by
 the Company, excluding fines and tickets. You
 shall bear the tax usage value incurred in connection with the Car, as shall be in effect from time to time. You
 will drive the Car carefully and properly qua an owner who cares for his/her property and according to the Company's applicable
 policy as in effect from time to time. You
 confirm that excluding the right to use the Car, you shall not have any interest, lien, encumbrance or retention or other right in
 the Car and you undertake to return the Car in good condition immediately to the Company upon the termination of your employment. For
 the avoidance of doubt, it is hereby clarified that the Car shall be provided in lieu of any payment in respect of commuting expenses. In
 both options, the Company will pay all gas /petrol consumption of the Car

9. Recreation
 Pay In
 accordance with applicable law

10. Sick
 Days Full
 payment from the first day of absence due to sickness.

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| | | | | |
|:---|:---|:---|:---|:---|
| 11. | Pension and Severance Pay<br>| **Company's Contribution to Severance** | **Company's Contribution to Pension and Life Insurance\*** | **Your Contribution to Pension and Life Insurance** |
|  |  | 8.33% | 6.5% | 6% |

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| | |
|:---|:---|
| <br>Name of the Policy<br> Starting Date<br>| \* In the event that you shall elect to be insured in a managers insurance policy or a provident fund which is not a pension fund - the Company's contributions towards pension and life insurance shall include payment for disability insurance in an amount which will ensure 75% of the Salary, provided however, that in any event the contributions of the Company towards life insurance and pension shall be equal to at least 5% of the Salary, and the total cost of the Company for disability insurance and pension and life insurance shall not exceed 7.5% of the Salary. _________ _________[please complete] |

---

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| | | | |
|:---|:---|:---|:---|
| 12. | Study Fund<br>| **Company's Contribution** | **Your Contribution** |
|  |  | 7.5% | 2.5% |

---

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| | | |
|:---|:---|:---|
|  | Name of the Policy<br>Starting Date<br>| __________________[please complete] |
| 13. | Mobile Phone<br>| The Company shall place at your disposal a mobile phone for your business and personal use (the "**Phone**").<br>All expenses incurred in connection with the use and maintenance of the Phone shall be borne and paid by the Company.<br> Furthermore, any tax liability associated with the Phone shall be borne by you.<br> You will use the Phone carefully and properly qua an owner who cares for his property and according to the Company's policies, as shall be in effect from time to time.<br> You confirm that excluding the right to use the Phone you shall not have any lien or retention right in the Phone and you undertake to return the Phone to the Company upon the termination of your employment<br>|
| 14. | Bonus | You will be entitled to a special signing bonus equal to one months gross salary.<br>In addition, you will be entitled to bonuses as is customary in the group of companies for senior officials, at the sole discretion of the board of directors of the Company. |
| 15. | Effective Date | November 1, 2022 |
| 16. | Prior Notice Period | 3 months |
| 17. | Gardening Leave | Except in the event of termination for cause, if the Company informs you that it is terminating your employment before the lapse of 24 months, you will be entitled to paid gardening leave of 9 months; if the Company informs you that it is terminating your employment after the lapse of 24 months, but before the lapse of 36 months you will be entitled to paid gardening leave of 6 months; if the Company informs you that it is terminating your employment after the lapse of 36 months you will be entitled to paid gardening leave of 3 months. |

---

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| | |
|:---|:---|
| **The Company** | **The Employee** |

---

![](ex4-6_001.jpg)

 ****

***Free translation of the General Order and Confirmation Regarding Payments of Employers to Pension Funds and Insurance Funds instead of Severance Pay***

**<u>Annex A-1</u>**

Pursuant to the power granted to me under section 14 of the Severance Pay Law 5723-1963 ("**Law**") I hereby confirm that payments paid by an employer, commencing the date hereof, to an employee's comprehensive pension fund into a provident fund which is not an insurance fund, as defined in the Income Tax Regulations (Registration and Management Rules of a Provident Fund) 5724-1964 ("**Pension Fund**"), or to a Manager's Insurance Fund that includes the possibility of an allowance or a combination of payments to an Allowance Plan and to a plan which is not an Allowance Plan in an Insurance Fund ("**Insurance Fund**"), including payments which the employer paid by combination of payments to a Pension Fund and to an Insurance Fund whether there exists a possibility in the Insurance Fund to an allowance plan ("**Employer Payments**"), will replace the severance pay that the employee is entitled to for the salary and period of which the payments were paid ("**Exempt Wages**") if the following conditions are satisfied:

(1) Employer
 Payments –

---

| | |
|:---|:---|
| (a) | for Pension Funds are not less than 14.33 % of the Exempt Wages or 12% of the Exempt Wages, if the |
|  | employer pays for his employee an additional payment on behalf of the severance pay completion for a providence fund or Insurance Fund at the rate of 2.33% of the Exempt Wages. If an employer does not pay the additional 2.33% on top of the 12%, then the payment will constitute only 72% of the Severance Pay. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to
 the Insurance Fund are not less that one of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 13.33%
 of the Exempt Wages if the employer pays the employee additional payments to insure his monthly income in case of work disability,
 in a plan approved by the Supervisor of the Capital Market, Insurance and Savings in the Finance Ministry, at the lower of, a rate
 required to insure 75% of the Exempt Wages or 2.5% of the Exempt Wages ()"**Disability Payment** ").

(ii) 11%
 of the Exempt Wages if the employer pays an additional Disability Payment and in this case the Employer Payments will constitute
 only 72% of the employee's severance pay; if, in addition to the abovementioned sum, the employer pays 2.33% of the Exempt
 Wages for the purpose of Severance Pay completion to providence fund or Insurance Funds, the Employer Payments will constitute 100%
 of the severance pay.

(2) A
 written agreement must be made between the employer and employee no later than 3 months after the commencement of the Employer Payments
 that include –

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 agreement of the employee to the arrangement pursuant to this confirmation which details the Employer Payments and the name of the
 Pension Fund or Insurance Fund; this agreement must include a copy of this confirmation;

(b) an
 advanced waiver of the employer for any right that he could have to have his payments refunded unless the employee's right
 to severance pay is denied by judgment according to sections 16 or 17 of the Law, and in case the employee withdrew monies from the
 Pension Fund or Insurance Fund not for an Entitling Event; for this matter, Entitling Event or purpose means death, disablement or
 retirement at the age of 60 or over.

(3) This
 confirmation does not derogate from the employee's entitlement to severance pay according to the Law, Collective Agreement,
 Extension Order or personal employment agreement, for any salary above the Exempt Wages.

---

| | |
|:---|:---|
| **The Company** | **The Employee** |

---

**<u>ANNEX B</u>**

**<u>to the Agreement between Gadi Graus and Cust2mate Ltd. (the "Company"), dated November 1, 2022</u>**

**CONFIDENTIALITY, NON-COMPETITION, NON-SOLICITATION, INTELLECTUAL PROPERTY ASSIGNMENT**

This Annex B is entered into by the Company and I, Gadi Graus, the undersigned, as part of my employment agreement with the Company to which this Annex B is attached (the "**Agreement**"). Any capitalized term not defined in this Annex B shall have the meaning ascribed to such term in the Agreement.

In addition to my undertaking under Section 4.3 of the Agreement, I hereby acknowledge, confirm and undertake to the Company as follows:

**1.**  **<u>Confidentiality</u>** 

---

| | |
|:---|:---|
| 1.1 | I acknowledge that in the framework and/or as a result of my employment with the Company I may (or may have) receive(d), learn(ed), be(en) expos(ed) to, obtain(ed), or have (or had) access to non-public proprietary and other confidential information relating to the Company, its business and activities, including without limitation any commercial, financial, business, professional, technical, technological information, including information regarding the Company's (actual or planned) products, services, inventions, discoveries, studies, techniques, research and developments, processes, specifications, data, know-how, improvements, trade secrets, computer programs, software (in source and object code), databases and any intellectual property, information regarding marketing, operations, plans, activities, policies and procedures, employees, customers, suppliers, business partners, etc., including information of third parties (with respect to which the Company may have a duty of confidentiality), all whether or not marked confidential and whether disclosed in written, oral or other format (collectively, the "**Confidential Information**"), which is highly confidential and of great value to the Company and which may constitute professional and/or commercial secrets. For the sake of clarity, Confidential Information shall be deemed to include all notes, summaries, analyses, studies or other documents prepared by me or any other person which contain, or are based upon, in whole or in part, any Confidential Information. |
|  | Furthermore, I confirm and acknowledge that the Company is affiliated to a public company, A2Z Smart Technology Corp. (the "**Public Company**"), and I hereby represent that the Confidential Information and any other information regarding the Company and/or the Public Company that is unknown to the public yet, may be considered as "inside information", as such term is defined in the Securities Law, and contain information with respect to the Company's and/or the Public Company's development, a change of their situation, an estimated evolution or change or any other information about the Company and/or the Public Company, which is unknown to the public and that if it would have been known to the public, it could cause a significant change in the value of one of the Public Company's securities or other securities of which the Public Company's securities are a core asset. I am aware, that the execution of a transaction with securities of the Company and/or the Public Company (including options exercising) while I or the Company and/or the Public Company have inside information, is prohibited according to the law, and that the utilization of inside information and/or its provision to third parties might, under certain circumstances, constitute a criminal offense. Therefore, I confirm and undertakes to maintain such information in confidence, not to take advantage and not to let anyone else (including my family members) to take advantage of such information with respect to transactions in the Company's and/or the Public Company's securities or any other securities, and to act in accordance with any applicable law. |

---

1.2 I
 confirm and agree that all right, title and interest in and to all Confidential Information
 is and shall remain the sole and exclusive property of the Company or the third party providing
 such Confidential Information to the Company, as the case may be.

1.3 During
 my period of employment with the Company and thereafter (without any fixed limitation of
 time), I undertake to maintain all Confidential Information in strict confidence at all times
 and not to, directly or indirectly, whether in writing, orally or otherwise, communicate,
 publish, reveal, describe, divulge or otherwise disclose or make available any of the Confidential
 Information or allow its exposure or disclosure, in whole or in part, to any individual or
 entity, and not to use any of the Confidential Information for any purpose other than for
 the performance of my duties and obligations on behalf of the Company under the Agreement.

Notwithstanding the foregoing, the Confidential Information shall not include information that I prove using documented evidence to be (a) generally available to the public not as a result of any fault of mine or any person acting on my behalf; or (b) furnished to me prior to my association with the Company, without any obligation of confidentiality and/or use restrictions by a third party without breaching a confidential obligation.

1.4 In
 the event that I will be required to disclose pursuant to an order of a court of competent
 jurisdiction or by applicable law or regulation any Confidential Information, I undertake
 that: (i) such disclosure will be made only to the extent and solely to the recipient legally
 required; and (ii) the Company will be provided by me with sufficient prior written notice
 of such legal requirement so as to have the opportunity to oppose the disclosure or obtain
 a protective order.

1.5 I
 have not and will not improperly or wrongfully use(d) or disclose(d) any non-public proprietary
 information, documentation, trade secrets or other confidential information of any former
 employer or any previously approved concurrent employer or other person and I will not bring
 onto the premises of the Company or otherwise use on behalf of or to the benefit of the Company
 any such information belonging to any such employer, person or third party unless consented
 to in writing by such employer, person or third party.

1.6 Upon
 the earlier of the Company's request or upon termination of this Agreement, I shall
 return to the Company any and all documents and other tangible materials containing Confidential
 Information and shall erase or destroy any computer or data files containing such Confidential
 Information, such that no copies or samples of Confidential Information shall remain with
 me. I agree that the Company has the right to inspect my property to reasonably ensure that
 no such materials remain in my possession.

**2.**  **<u>Intellectual Property Rights</u>** 

2.1 Without
 derogating from the Company's rights under any law and/or agreement, I confirm and
 agree that any and all discoveries, ideas, developments, inventions research , formulae,
 improvements, works of authorship, mask works, trade secrets, modifications, concepts, techniques,
 specifications, computer software or programs (in source and in object code), data bases,
 products (actual or planned), methods, technologies, know-how, designs, trademark data, processes
 and proprietary information, "Service Inventions" under Section 132 of the Patent
 Law-1967, whether or not patentable, copyrightable or otherwise protectable, (collectively,
 "**Inventions** "), which were or shall be made, invented, developed, discovered,

 prior to my employment with the Company for the benefit of and/or on behalf of the Company;
 and/or (ii) as a result of and/or during the period of my employment with the Company; and/or
 (iii) with the use of any proprietary information belonging to the Company, or any intellectual
 property rights therein, related thereto or associated therewith such as (but not limited
 to) copyrights and copyrights applications, patents and patent applications (collectively,
 "**IP Rights** "), (such Inventions and IP Rights, shall be referred to herein
 as "**Company IP**") are and shall be the sole and exclusive property of the
 Company, and I shall have no rights, claims or interest whatsoever in or with respect thereto,
 and for the removal of doubt, I hereby irrevocably and unconditionally assign (and agree
 to assign in the future upon the vesting of any such rights in me) to the Company any and
 all rights title and interest, in and to any and all Company IP.

2.2 I
 have attached hereto, as  **<u>Annex B-1</u>** , a list describing all information, improvements,
 inventions, formulae, processes, techniques, know-how and data, whether or not patentable
 or registerable under copyright or any similar laws, and whether or not reduced to practice,
 original works of authorship and trade secrets made or conceived by or belonging to me (whether
 made solely by me or jointly with others) that: (i) were developed by me prior to the my
 engagement with the Company (collectively, the "**Prior Inventions** "), (ii)
 relate to the Company's actual or proposed business, products or research and development,
 and (iii) are not assigned to the Company hereunder; or, if  **<u>Annex B-1</u>** is incomplete
 or if no such list is attached, I represent that there are no such Prior Inventions.

2.3 Without
 derogating from the generality of the foregoing, I hereby irrevocably confirm that, the Salary
 to which I am entitled under the Agreement includes and incorporates full and appropriate
 compensation for any and all right I may have to any Company IP which are assigned to the
 Company, and I shall not be entitled to any additional compensation whatsoever with respect
 to any Company IP or for fulfilling my duties hereunder, and I hereby irrevocably waive any
 claim and/or demand to any right, moral rights, compensation or reward, including any right
 for any royalties or other compensation in Inventions based on Section 134 of Israeli Patent
 Law-1967.

2.4 I
 further agree and undertake that if and to the extent any additional action is required from
 me in order to perfect, enforce, or defend said Company IP, and effectuate or confirm the
 Company's title and interest therein, including to effect the formal transfer thereof
 to the Company, I shall take all necessary measures and fully cooperate, during and after
 the term of my employment, and perform any such action promptly upon the Company's
 request. Additionally, I undertake to promptly disclose to the Company and transfer thereto
 any and all information and details with respect to the Company IP, to keep accurate records
 relating to the conception and reduction to practice of all Company IP (which records shall
 be the sole and exclusive property of the Company and shall be surrendered to the possession
 of the Company, immediately upon their creation), and to provide the Company with all information,
 documentation, and assistance, including the preparation or execution, as applicable, of
 documents, declarations, assignments, drawings and other data. It is hereby agreed that in
 case I will be required to assist the Company as described above after the termination of
 my employment with the Company, for any reason, the Company shall reimburse me for any reasonable
 expenses, including reasonable loss of time expenses, in connection therewith.

2.5 If
 the Company (or any of its assigns) is unable because of my mental or physical incapacity
 or for any other reason to secure my signature to or to apply for or to pursue any application
 for any domestic or foreign patents or copyright registrations covering any of the Company
 IP, or to further any of the purposes as described above, then I hereby irrevocably designate
 and appoint the Company and its duly authorized officers, agents and assigns as my agent
 and attorney in fact, to act for and in my behalf and stead to execute and file any such
 applications and to do all other lawfully permitted acts to further the above purposes, including
 without limitation the prosecution and issuance of letters patent or copyright registrations
 thereon, with the same legal force and effect as if executed by me.

3.  **<u>Non Competition and Non-Solicitation</u>** 

3.1 I
 undertake that, without the express prior written consent of the Company (such consent to
 be given or withheld in the sole discretion of the Company) as long as I am employed by the
 Company and for a period of twelve (12) months thereafter: (a) I shall not, directly or indirectly,
 be involved in any activity which is competitive with the Company or any of its businesses,
 including without limitation in the field of Smart Carts for the Retail Industry or Maintenance
 of large Pieces of Mechanical or Electronic Equipment, (b) I shall not, directly or indirectly,
 engage in any activity with or for the benefit of any individual or entity, which at the
 time of the termination of my employment with the Company, or during the period of twelve
 (12) months prior thereto, was in contact of the Company, including without limitation any
 of the Company's customers, suppliers, consultants, advisors, service providers, employees,
 and the like, or any active prospect of any of the foregoing persons (each, a "**Third Party**") with respect to business activity of the kind and/or in the field that
 the Company engages in or discussed engaging in with such Third Party and/or take any action
 which could interfere with the relationship of the Company with such Third Party; and (c)
 I shall not, directly or indirectly, employ, offer to employ or otherwise solicit for employment
 or engagement any person who is or was, during the 12 (twelve) month period prior to the
 termination of my employment with the Company, an employee or consultant, supplier or contractor
 of the Company.

For the purpose of this Section 3 of this Annex B, "directly or indirectly" includes engaging in business as an owner, an independent contractor, shareholder, director, partner, manager, agent, employee or advisor. However, such a reference does not include the holding of shares of a publicly traded company which constitute no more than 5% of the issued share capital of such traded company.

3.2 I
 confirm that the compensation in the Agreement, with respect to which negotiations were conducted,
 includes and incorporates special non-compete compensation as set forth in <u>Annex A</u>,
 which constitutes full and appropriate compensation for my undertaking not to compete in
 Section 3.1 of this Annex B above.

4.  **<u>General</u>** 

4.1 For
 the purpose of this Annex B, the term "Company" shall include any parent, subsidiary
 and/or affiliated entities of the Company.

4.2 My
 undertakings stipulated in this Annex B shall survive the termination of the Agreement.

4.3 In
 the event of termination of my employment with the Company, I hereby grant my consent to
 the Company to (a) notify my new employer about my rights and obligations hereunder, and
 (b) give the Company permission to send my new employer a copy of this Annex B.

4.4 The
 provisions of this Annex B are in addition to, and not in lieu of, any statutory or other
 contractual or legal obligation that the Company may have relating to the subject matter
 addressed herein.

4.5 In
 the event that any of my undertakings in this Annex B are adjudicated to be invalid or unenforceable,
 such provision will be enforced to the maximum extent allowed by law given the intent of
 the Company and myself as expressed in this Annex B. The unenforceability of any term (or
 part thereof) shall not affect the enforceability of any other part of these undertakings
 made by me hereunder.

4.6 I
 am aware that the breach or threatened breach of this Annex B or any part thereof may cause
 the Company and/ or its customers, severe and irreversible damage, to which monetary damages
 would not constitute sufficient remedy. Without derogating from any other remedies to which
 the Company may be entitled, including without limitation, pursuant to the Israeli Commercial
 Wrongs Law, 1999, I agree that the Company will be entitled to injunctive relief to enforce
 my undertakings (or any breach thereof) under this Annex B.

4.7 I
 represent that my performance of the terms of this Annex B and my duties as an employee of
 the Company, do not and will not breach any agreement I have with, or any other obligation
 I owe to, any former employer or other party.

I have read all that which is stated above and I hereby undertake to comply with all that which is written, and in witness whereof, I hereby affix my signature to this Annex B, as of this 1st day of the month of November, 2022

Employee Name: Gadi Graus

Signature: *<u>/s/ Gadi Graus</u>*

 ****

**<u>Annex B-1</u>**

**<u>List of Prior Inventions</u>**

1. NONE

![](ex4-6_002.jpg)

![](ex4-6_003.jpg)

## Exhibit 4.7

**Exhibit 4.7**

**Stock Option Plan**

**1.** **PURPOSE** 

The purpose of this Stock Option Plan (the "**Plan**") is to provide the Corporation with the means to encourage, attract, retain and motivate certain Participants by granting such Participants options to purchase common shares in the Corporation's capital (the "**Common Shares**") thus giving them an on-going proprietary interest in the Corporation.

**2.** **DEFINITIONS** 

Unless otherwise defined herein, the following terms have the following meanings:

"**Associate**" has the meaning given to such term in Policy 1.1 of the Exchange and any amendment thereto or replacement thereof ("**Policy 1.1**").

"**Black-out Period**" means any period established under a disclosure, insider trading or similar policy of the Corporation during which Directors, Employees and Consultants may not exercise options.

"**Board**" means the board of directors of the Corporation, and, where applicable, includes a committee of the board of directors authorized to administer the Plan pursuant to Subsection ‎(a).

"**Cashless Exercise**" means an exercise of Options in accordance with Section 4.8 of Policy 4.4.

"**Change of Control**" means:

&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 reorganization, amalgamation, merger or plan of arrangement in connection with any of the foregoing, other than solely involving
 the Corporation and one or more of its Subsidiaries, with respect to which all or substantially all of the persons who were the beneficial
 owners of the Common Shares immediately prior to such reorganization, amalgamation, merger or plan of arrangement do not, following
 such reorganization, amalgamation, merger or plan of arrangement beneficially own, directly or indirectly, more than 50 percent of
 the resulting voting shares on a fully-diluted basis;

&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 acquisition of Common Shares by a person or group of persons acting in concert (other than the Corporation or a Subsidiary of the
 Corporation) as a result of which the offeror and its affiliates beneficially own, directly or indirectly, 50 percent or more of
 the Common Shares then outstanding; or

&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 sale to a person other than a Subsidiary of the Corporation of all or substantially all of the Corporation's assets.

"**Common Shares**" has the meaning given to such term in Section ‎1.

"**Consultant**" has the meaning given to such term in Policy 4.4 of the Exchange and any amendment thereto or replacement thereof ("**Policy 4.4**").

"**Consultant Company**" has the meaning given to such term in Policy 4.4.

"**Corporation**" means A2Z Smart Technologies Corp.

"**Director**" means directors, senior officers and Management Company Employees of the Corporation or directors, senior officers and Management Company Employees of the Corporation's Subsidiaries.

"**Disinterested Shareholder Approval**" means the approval of a majority of shareholders of the Corporation voting at a duly called and held meeting of such shareholders, excluding votes of Insiders to whom options may be granted under the Plan.

"**Distribution Period**" has the meaning given to such term in Subsection ‎(a)(ii)A.

"**Employees**" has the meaning given to such term in Policy 4.4.

"**Exchange**" means the TSX Venture Exchange Inc.

"**Exercise Notice**" has the meaning given to such term in Subsection ‎(a).

"**Hold Period**" has the meaning given to such term in Section ‎16.

"**Insider**" has the meaning given to such term in Policy 1.1 and includes any person who is an Associate of that Insider.

"**Insider Trading Policy**" means the Corporation's current insider trading policy and any amendments thereto or replacement thereof.

"**Investor Relations Activities**" has the meaning given to such term in Policy 1.1.

"**Management Company Employee**" means an individual employed by a Person providing management services to the Corporation, which are required for the ongoing successful operation of the business enterprise of the Corporation, but excluding a Person engaged in Investor Relations Activities.

"**Market Price**" means the last closing price of the Common Shares listed on the Exchange before the grant of an option to a Participant.

Notwithstanding the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Market Price shall be adjusted for any share consolidation or split. If any option is granted to a Participant within five (5) days
 following a consolidation of the Corporation's share capital, the minimum exercise price per Common Share will be the greater
 of the Market Price, adjusted for any share consolidation or split, and $0.05;

(b) if
 the Corporation announces Material Information regarding the affairs of the Corporation after the grant of an option to a Participant
 and if the Exchange determines that the person that is the subject of the option grant should reasonably have been aware of that
 pending Material Information, then the Market Price will be at least equal to the closing price of the Common Shares on the trading
 day after the day on which that Material Information was announced;

(c) if
 the Exchange determines that the closing price is not a fair reflection of the market for the Common Shares and the Common Shares
 appear to have been high-closed or low-closed, then the Exchange will determine the Market Price to be used;

(d) if
 the Corporation is suspended from trading or has for any reason not traded for an extended period of time, the Exchange may determine
 the deemed Market Price to be used; and

---

| | |
|:---|:---|
| (e) | the Exchange will not generally permit any securities convertible into Common Shares, including incentive stock options, to be issued with an effective conversion price of less than $0.05 per Common Share. |
|  | Notwithstanding the foregoing, the minimum exercise price of any option granted pursuant to this Plan must be $0.05 per Common Share or such other price as is acceptable to the Exchange. |

---

**"Material Information"** has the meaning given to such term in Policy 1.1.

"**NI 45-106**" means National Instrument 45-106 – *Prospectus and Registration Exemptions*.

**"Notice"** has the meaning given to such term in Section ‎12.

"**Offer**" has the meaning given to such term in Subsection ‎1(1)(a)(c).

"**Option Shares**" has the meaning given to such term in Subsection ‎1(1)(a)(c).

"**Outstanding Shares**" means that number of Common Shares outstanding, on a non-diluted basis, at any point in time as confirmed by the transfer agent and registrar for the Common Shares.

"**Participant**" means:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Directors
 of the Corporation, present and future;

(b) Employees
 (including those persons conducting Investor Relations Activities) of the Corporation, present and future; and

(c) Consultants
 of the Corporation, present and future.

"**Person**" has the meaning given to such term in Policy 1.1.

"**Plan**" has the meaning given to such term in Section ‎1.

"**Policy 1.1**" has the meaning given to such term in this Section ‎2.

"**Policy 4.4**" has the meaning given to such term in this Section ‎2.

"**Representatives**" has the meaning given to such term in Subsection ‎(a).

"**Run-off Period"** has the meaning given to such term in Subsection ‎(b).

"**Securities Act**" means the *Securities Act*, R.S.B.C. 1996, c.418, as amended, from time to time.

"**Security Based Compensation Plan**" has the meaning ascribed thereto in Policy 4.4.

"**Subsidiary**" has the meaning given to such term in NI 45-106.

"**Termination Date**" has the meaning given to such term in Subsection ‎(b).

"**Withholding Obligations**" has the meaning given to such term in Subsection ‎1(1)(a)(a).

**3.** **INTERPRETATION** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 insertion of headings in this Plan is for convenience of reference only and in no way defines limits or enlarges the scope or meaning
 of this Plan or any of its provisions.

(b) References
 to the words "**herein** ", "**hereunder** ", "**hereof** ", "**hereto** "
 and words of similar import refer to this Plan and any amendments hereto, and not to any particular section of this Plan. References
 to sections refer to the sections of this Plan unless otherwise stated.

(c) In
 this Plan, words importing the singular include the plural and vice versa, words importing the masculine gender include the feminine
 and neuter genders and vice versa, and words importing persons include individuals, partnerships, associations, trusts, societies,
 unincorporated organizations and corporations.

**4.** **ADMINISTRATION** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Plan shall be administered by the Board, or any committee appointed by the Board to administer this Plan.

(b) The
 interpretation, construction and application of the Plan shall be made by the Board and shall be final and binding on all holders
 of options granted under the Plan and all persons eligible to participate under the provisions of the Plan.

(c) The
 Board shall be permitted, through the establishment of appropriate procedures, to monitor the trading of Common Shares by persons
 who are performing Investor Relations Activities for the Corporation and who have been granted options pursuant to this Plan.

(d) No
 member of the Board shall be liable for any action or determination taken or made in good faith in the administration, interpretation,
 construction or application of the Plan or any options granted under it.

**5.** **COMMON SHARES SUBJECT TO THE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to this Section ‎5, the maximum number of Common Shares which may be issued under options granted under this Plan, from time
 to time, shall be equal to ten percent (10%) of the Outstanding Shares of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 maximum number of Common Shares which may be issued to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 Consultant in any twelve (12) month period under this Plan may be no more than two percent (2%) of the Outstanding Shares of the
 Corporation; and

(ii) all
 Persons conducting Investor Relations Activities for the Corporation in any twelve (12) month period may be, in aggregate, no more
 than two percent (2%) of the Outstanding Shares of the Corporation,

less the aggregate number of shares reserved for issuance or issuable under any other Security Based Compensation Plan of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless
 the Corporation has received the requisite Disinterested Shareholder Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 maximum number of Common Shares which may be issued to any individual in any twelve (12) month period under this Plan may be no more
 than five percent (5%) of the Outstanding Shares of the Corporation, less the aggregate number of shares reserved for issuance or
 issuable under any other Security Based Compensation Plan of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 aggregate number of Common Shares reserved for issuance to Insiders (as a group) under the Plan and any other Security Based Compensation
 may be no more than ten percent (10%) of the Outstanding Shares of the Corporation at any point in time, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 aggregate number of Common Shares granted or issued to Insiders (as a group) in any twelve (12) month period under the Plan and any
 other Security Based Compensation may be no more than ten percent (10%) of the Outstanding Shares of the Corporation calculated as
 at the date of grant or issued to any Insider;

&nbsp;&nbsp;&nbsp;&nbsp;(d) Common
 Shares in respect of which an option is granted under the Plan but not exercised prior to the termination of such option, due to
 the expiration, termination or lapse of such option or otherwise, shall be available for options to be granted thereafter pursuant
 to the provisions of the Plan. All Common Shares issued pursuant to the exercise of the options granted under the Plan shall be so
 issued as fully paid and non-assessable Common Shares.

&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Board shall allot, set aside and reserve for issuance for the purpose of this Plan a sufficient number of Common Shares at each meeting
 of the Board such that the number of Common Shares issuable under Subsection ‎(a) shall be properly allotted, set aside and reserved
 for issuance.

**6.** **ELIGIBILITY AND GRANT OF OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to this Section ‎6, options shall be granted only to Participants of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Except
 in relation to Consultant Companies, options may be granted only to companies that are wholly owned by Participants.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Provided
 that the Common Shares are listed on the Exchange, if the Participant is a company, including a Consultant Company, the company shall
 not be permitted to effect or permit any transfer of ownership or option of shares of the company nor to issue further shares of
 any class of the company to any individual or entity as long as the options remain outstanding, except where the written consent
 of the Exchange has been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject
 to the foregoing, the Board shall have full and final authority to determine the Participants who are to be granted options under
 the Plan and the number of Common Shares subject to each option grant. Stock options granted under the Plan shall be for the purchase
 of Common Shares only, and for no other security.

(e) Unless
 limited by the terms of the Plan or any regulatory or stock exchange requirement, the Board shall have full and final authority to
 determine the terms and conditions attached to any grant of options under this Plan.

(f) The
 Corporation may only grant options pursuant to resolutions of the Board.

(g) In
 determining options to be granted to Participants, the Board shall give due consideration to the value of each such Participant's
 present and potential contribution to the success of the Corporation.

(h) Any
 option granted under the Plan shall be subject to the requirement that, if at any time the Corporation shall determine that the listing,
 registration or qualification of the Common Shares subject to such option, or such option itself, upon any securities exchange or
 under any law or regulation of any jurisdiction, or the consent or approval of any securities exchange or any governmental or regulatory
 body, is necessary as a condition of, or in connection with, the grant or exercise of such option or the issuance or purchase of
 Common Shares thereunder, such option may not be granted, accepted or exercised in whole or in part unless such listing, registration,
 qualification, consent or approval shall have been effected or obtained on conditions acceptable to the Board. For certainty, it
 is expressly stated that if the Corporation grants options to Participants resident in Canada, the Corporation may only grant options,
 and issue Common Shares on exercise thereof, to Participants resident in jurisdictions in Canada where NI 45-106 has been complied
 with. However, nothing herein shall be deemed or construed to require the Corporation to apply for or to obtain such listing, registration,
 qualification, consent or approval.

(i) In
 the case of options granted to Employees, Consultants or Management Company Employees, the Participant must be a bona fide Employee,
 Consultant or Management Company Employee, as the case may be, of the Corporation or its Subsidiaries.

(j) The
 Board shall complete and file, in accordance with applicable law, or shall cause to be completed and filed, all notices, reports,
 filings or other documentation required by applicable law, regulatory requirement or stock exchange rule, in connection with a grant
 of options or an issuance or purchase of Common Shares thereunder.

(k) For
 certainty, the Board is not required to issue a news release disclosing the grant of options if (i) the Common Shares are not listed
 on the Exchange or (ii) the options are granted to Employees or Consultants that are not directors or officers of the Corporation
 or performing Investor Relations Activities for the Corporation, except where the grant constitutes Material Information under applicable
 securities laws.

**7.** **PRICE** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 option exercise price per Common Share shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 the Common Shares are not listed on the Exchange, the fair market value of the Common Shares as determined by the Board at the time
 such option is granted; and

(ii) if
 the Common Shares are listed on the Exchange, the price fixed by the Board when such option is granted, except that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. the
 option exercise price per Common Share shall not be less than the Market Price; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. if
 options are granted within ninety (90) days of a distribution (the "**Distribution Period**") by the Corporation by
 prospectus, the minimum exercise price per Common Share of those options will be the greater of the Market Price and the price per
 Common Share paid by the public investors for Common Shares acquired pursuant to such distribution. The Distribution Period shall
 begin:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. on
 the date the final receipt is issued for the final prospectus in respect of such distribution; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. in
 the case of a prospectus that qualifies special warrants, on the closing date of the private placement in respect of such special
 warrants.

&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 option price per share will be expressed in Canadian dollars.

**8.** **PERIOD OF OPTION AND RIGHTS TO EXERCISE** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to the provisions of this Section 8 and Section ‎9 below, options will be exercisable in whole or in part, and from time to time,
 at any time following the date of grant and prior to the expiry of their term.

&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Common Shares are listed on the Exchange and an option expires during a Black-out Period, then the option shall remain exercisable
 until the period ending up to two (2) trading days after the end of such Black-out Period, notwithstanding the natural expiry of
 its term, except that in no event may such exercise occur more than ten (10) years after the initial grant date of the option.

&nbsp;&nbsp;&nbsp;&nbsp;(c) Options
 shall not be granted for a term exceeding ten (10) years.

&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject
 to the Board's sole discretion in modifying the vesting of options, from time to time, options granted shall vest, and become
 exercisable, upon and subject to such terms, conditions and limitations as contained herein and otherwise as the Board may from time
 to time determine with respect to each option. Notwithstanding the foregoing, options granted to Consultants conducting Investor
 Relations Activities for the Corporation shall vest over a period of not less than twelve (12) months with no more than twenty-five
 percent (25%) of the options vesting in any three (3) month period.

&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Common Shares to be purchased upon each exercise of an option shall be paid for in full by the Participant at the time of exercise,
 provided however that upon requisite Board approval a Participant may complete an exercise of options as a Cashless Exercise.

&nbsp;&nbsp;&nbsp;&nbsp;(f) Except
 as provided in Section ‎9, no option which is held by a Participant may be exercised unless the Participant is then a Participant
 of the Corporation, and in the case of an Employee, the Employee has been continually employed by the Corporation since the date
 of the grant of the option, but provided that an authorized absence of leave shall not be considered an interruption of employment
 for purposes of the Plan.

**9.** **CESSATION OF PROVISION OF SERVICES** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) **Death of Participant.** In the event of the death of a Participant during the term of the Participant's option, the option theretofore
 granted to the Participant shall be exercisable by the Participant's heirs or administrators (the "**Representatives** ")
 within, but only within, the period of one (1) year next succeeding the Participant's death, and in no event after the expiry
 date of the option. Before expiry of an option under this Subsection ‎(a), the Board shall notify the Participant's Representative
 in writing of such expiry no less than twenty (20) days prior to its expiry.

&nbsp;&nbsp;&nbsp;&nbsp;(b) **Termination of Employment or Office.** Subject to the discretion of the Board to determine otherwise, and this Section ‎9, if any Participant
 shall cease to be a Participant for any reason, other than for cause or death, the option held by such person shall terminate on
 the earlier of (i) the expiry date of the option; (ii) ninety (90) days from the date such person ceases to be a Participant; or
 (iii) such other expiry date as may be determined by the Board at the time that such Participant ceases to be eligible, but shall
 be expire no later than one (1) year from the date on which the Participant ceases to be a Participant (the "**Termination Date** "). The Participant may exercise any option issued under the Plan that is then exercisable at any time within that
 period (the "**Run-off Period** "), unless an existing agreement between the Participant and the Corporation provides
 for a different Run-Off Period in which case the terms of that agreement shall continue to be applicable; but provided in all circumstances
 that no options issued under the Plan shall be exercisable after the expiry date of the options.

In the event that a Participant ceases to be a Participant of the Corporation because of termination for cause, the options of the Participant not exercised at such time shall immediately be cancelled on the date of such termination and be of no further force or effect whatsoever notwithstanding anything to the contrary in the Plan and the Corporation shall have no notification obligation.

&nbsp;&nbsp;&nbsp;&nbsp;(c) **Other.** If any Participant shall cease to be a Participant of, or to, the Corporation for any reason other than provided for in this
 Section ‎9, the options of the Participant not exercised at such time shall immediately be cancelled and be of no further force
 or effect whatsoever.

**10.** **NON-TRANSFERABILITY OF OPTION** 

Subject to applicable law, no option granted under the Plan shall be assignable or transferable otherwise than by will or by the laws of descent and distribution, and such option shall be exercisable, during a Participant's lifetime, only by the Participant (subject to Subsection ‎(a)).

**11.** **AMENDMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Board may at any time amend the terms of the Plan or any option issued pursuant to the Plan to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reduce
 the number of Common Shares under option;

(ii) increase
 the exercise price of an option; or

(iii) cancel
 any option.

&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Common Shares are listed on the Exchange:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Board may approve the amendments set out in Subsection ‎(a) without the approval of the Exchange, provided that the Corporation
 issues a news release outlining the terms of the amendment; and

(ii) the
 Corporation shall be required to obtain the approval of the Exchange for any amendments to the Plan or any option granted pursuant
 to it that are not covered by Subsection ‎(a).

&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding
 Subsection ‎(a) and Subsection ‎(b):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Corporation shall obtain Disinterested Shareholder Approval for any amendment to an option granted to a person who is an Insider
 at the time of such amendment;

(ii) the
 exercise price of any option granted pursuant to this Plan may only be amended if at least six (6) months have elapsed since the
 later of the date of commencement of the term of the option or the date the exercise price of that option was last amended; and

(iii) any
 option granted pursuant to this Plan must be outstanding for at least one (1) year before the Corporation may extend its term provided
 in all cases that any such extension shall not exceed the term provided for in Subsection ‎(c).

&nbsp;&nbsp;&nbsp;&nbsp;(d) Provided
 the Common Shares are listed on the Exchange, if the Corporation cancels an option granted to a Participant and within one (1) year
 grants new options to the same Participant pursuant to this Plan, the grant of the new options shall be subject to the approval of
 the Exchange and the requirements set out in Subsection ‎(c), as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;(e) Any
 amendment to the terms of this Plan or any option granted pursuant to it shall not alter the terms or conditions of any option or
 impair the rights of any Participant to any option granted prior to such amendment.

**12.** **EVIDENCE OF OPTIONS** 

Following the grant of an option in accordance with the Plan, the Corporation shall forward to such Participant, a Notice of Grant (the "**Notice**") substantially in the form acceptable to the Corporation, which Notice shall evidence the grant of the option under the Plan. The Corporation shall also forward to the Participant, in addition to the Notice, a copy of this Plan and, subject to the Common Shares being listed on the Exchange, the Insider Trading Policy (on the first grant of an option) and any other documentation that may be required by applicable law, stock exchange or regulatory requirements.

**13.** **EXERCISE OF OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) An
 option may be exercised from time to time by delivering to the Corporation at its head or registered office, a written notice of
 exercise (the "**Exercise Notice**") specifying the number of Common Shares with respect to which the option is being
 exercised and accompanied by payment for the full amount of the purchase price of the Common Shares then being purchased.

(b) Upon
 receipt of a certificate of an authorized officer directing the issue of Common Shares purchased under the Plan, the transfer agent
 of the Corporation is authorized and directed to issue and countersign share certificates for the purchased Common Shares in the
 name of the Participant or the Participant's legal personal representative or as may otherwise be directed in writing by the
 Participant, including into a book-entry system, if requested.

(c) Notwithstanding
 Subsection ‎(h), the Corporation shall not, upon the exercise of any option, be required to register, issue or deliver any Common
 Shares prior to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 listing of such Common Shares on any stock exchange on which the Common Shares may then be listed; and

(ii) the
 completion of such registration or other qualification of such Common Shares under any law, rules or regulation as the Corporation
 shall determine to be necessary or advisable (including, without limitation, NI 45-106).

If any Common Shares cannot be registered, issued or delivered to any Participant for whatever reason, the obligation of the Corporation to issue such Common Shares shall terminate and any option exercise price paid to the Corporation shall be returned to the Participant without deduction or interest.

**14.** **CHANGES IN OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) **Share Consolidation or Subdivision.** In the event that the Common Shares are at any time subdivided or consolidated, the number of Common
 Shares reserved for option and the price payable for any Common Shares that are then subject to option shall be adjusted accordingly.

(b) **Stock Dividend.** In the event that the Common Shares are at any time changed as a result of the declaration of a stock dividend thereon,
 the number of Common Shares reserved for option and the price payable for any Common Shares that are then subject to option may be
 adjusted by the Board to such extent as it deems proper in its absolute discretion.

(c) **Effect of a Take-Over Bid.** If a bona fide offer to purchase Common Shares (an "Offer") is made to a Participant or to shareholders
 of the Corporation generally or to a class of shareholders which includes a Participant, which Offer, if accepted in whole or in
 part, would result in the offeror becoming a control person of the Corporation, within the meaning of subsection 1(1) of the Securities
 Act, the Corporation shall, upon receipt of notice of the Offer, notify each Participant of full particulars of the Offer, whereupon
 all Common Shares subject to such option ("Option Shares") will become vested and the option may be exercised in whole
 or in part by the Participant so as to permit the Participant to tender the Option Shares received upon such exercise, pursuant to
 the Offer. However, if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Offer referred to in this Section 15 is not completed within the time frame specified therein (as the same may be extended); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all
 of the Option Shares tendered by the Participant pursuant to the Offer are not taken up or paid for the offeror in respect thereof,

the options which vested pursuant to this Section 15 shall be returned by the Participant to the Corporation and reinstated as authorized but unissued Common Shares and the original terms applicable to such options shall be reinstated.

&nbsp;&nbsp;&nbsp;&nbsp;(d) **Acceleration of Expiry Date.** If at any time when an option granted under the Plan remains unexercised with respect to any unissued Option
 Shares, an Offer is made by an offeror, the directors may, upon notifying each Participant of full particulars of the Offer, declare
 all Option Shares issuable upon the exercise of options granted under the Plan, vested, and declare that the expiry date for the
 exercise of all unexercised options granted under the Plan is accelerated so that all options will either be exercised or will expire
 prior to the date upon which Common Shares must be tendered pursuant to the Offer.

(e) **Effect of a Change of Control.** If a Change of Control occurs, all Option Shares subject to each outstanding option will become vested,
 whereupon such option may be exercised in whole or in part by the Participant.

**15.** **RIGHTS PRIOR TO EXERCISE** 

A Participant shall have no rights whatsoever as a shareholder in respect of any Common Shares (including any right to receive dividends or other distributions therefrom or thereon) other than in respect of Common Shares in respect of which the Participant shall have exercised the option to purchase hereunder and which the Participant shall have actually taken up and paid for in full. For greater certainty a holder of an option under this Plan shall not be permitted to vote on any arrangement of the Corporation proposed to the holders of Common Shares of the Corporation.

**16.** **HOLD PERIOD** 

In addition to any resale restrictions under applicable legislation, all options granted hereunder and all Common Shares issued on the exercise of such options will be subject to a four (4) month hold period ("**Hold Period**") from the date the options are granted and the options and any Common Shares issuable on the exercise thereof must bear the following legends:

"Without prior written approval of the Exchange and compliance with all applicable securities legislation, the securities represented by this certificate may not be sold, transferred, hypothecated or otherwise traded on or through the facilities of the TSX Venture Exchange or otherwise in Canada or to or for the benefit of a Canadian resident until **[insert the date immediately following the date which is four months after the date of the grant of the option.]**"

"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) **[INSERT THE DISTRIBUTION DATE]**, AND (II) THE DATE THE ISSUER BECAME A REPORTING ISSUER IN ANY PROVINCE OR TERRITORY."

**17.** **WITHHOLDING TAXES** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) If,
 following the exercise by a Participant of an option or a portion thereof in accordance with the provisions of Article ‎13 hereof,
 the Corporation is required under the Income Tax Act (Canada) or any other applicable law to make source deductions in respect of
 any stock option benefits and to remit to the applicable governmental authority an amount on account of tax on the value of the taxable
 benefit associated with the issuance of Common Shares on exercise of options ()"**Withholding Obligations** "), then
 the Participant shall, in addition to the payment of the purchase price for the Common Shares then being purchased pursuant to Article
 ‎13 hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay
 to the Corporation sufficient cash as is reasonably determined by the Corporation to be the amount necessary to satisfy the Withholding
 Obligations; or

(ii) at
 the discretion of the Corporation, elect to permit the Corporation to reduce the number of Common Shares to be issued to the Participant
 by the number of Common shares having a fair market value at such time as is equal to the amount necessary to satisfy the Withholding
 Obligations; or

(iii) make
 other arrangements acceptable to the Corporation to fund the Withholding Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;(b) It
 is the responsibility of the Participant to ensure that they adhere to tax legislation in their jurisdiction regarding the reporting
 of benefits derived from the exercise of options.

&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 the event any taxation authority should reassess the Corporation for failure to have withheld income tax, or other similar payments
 from the Participant, pursuant to the provisions herein, the Participant shall reimburse and save harmless the Corporation for the
 entire amount assessed, including penalties, interest and other charges.

&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 Corporation will, within the time and in the manner prescribed by the Income Tax Act (Canada) (or any corresponding requirement under
 applicable provincial tax law), remit the Withholding Obligation to the Receiver General for Canada or other applicable tax authority
 and shall, to the extent necessary and within the time and in the manner prescribed by the Income Tax Act (Canada)) (or any corresponding
 requirement under applicable provincial tax law), make the election contemplated by subsection 110(1.1) of the Income Tax Act (Canada)
 (or any corresponding requirement under applicable provincial tax law) that neither it nor any person with whom it does not deal
 at arm's length (for purposes of the Income Tax Act (Canada)) will deduct any amount in respect of any payment to the Participant
 in connection with the exercise or surrender of his or her options and the Corporation shall also provide evidence of such election
 to the Participant forthwith upon making such election.

**18.** **NO CONTINUED SERVICE** 

The granting of an option to a Participant under the Plan shall not impose upon the Corporation any obligation whatsoever to retain the Participant as a Director, Employee, or Consultant of the Corporation.

**19.** **GOVERNING LAW** 

This Plan shall be construed in accordance with and be governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

**20.** **EXPIRY OF AN OPTION AND TERMINATION OF THE PLAN** 

&nbsp;&nbsp;&nbsp;&nbsp;(a) On
 the expiry date of any option granted under the Plan, and subject to any extension of such expiry date permitted in accordance with
 the Plan, such option shall forthwith expire and terminate and be of no further force or effect whatsoever, or as to the Common Shares
 in respect of which the option has not been exercised.

(b) The
 Plan will automatically terminate when, and if, any of the authorizations required to authorize the Plan shall cease.

**21.** **DISINTERESTED SHAREHOLDER APPROVAL** 

Unless the Corporation has obtained the requisite disinterested Shareholder approval pursuant to section 3.10 of Policy 4.4, the aggregate number of options granted to any one Person (and, where permitted under Policy 4.4, any companies that are wholly owned by that Person) in a 12-month period must not exceed 5% of the Common Shares, calculated on the date an option is granted to the Person.

**22.** **EFFECTIVE DATE OF THE PLAN** 

The Plan shall be effective upon the approval of the Plan by:

&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 stock exchange upon which the Shares of the Corporation may be posted or listed for trading, and shall comply with the requirements
 from time to time of the stock exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 holders of the Common Shares (the "**Shareholders** "), by the affirmative vote of a majority of the votes attached
 to the Common Shares entitled to vote and be represented and voted at an annual or special meeting of Shareholders held, among other
 things, to consider and approve the Plan.

**23.** **SEVERABILITY** 

If any provision of this Plan shall be determined by any court of competent jurisdiction to be illegal, invalid or unenforceable, that provision shall be severed from this Plan and the remaining provisions shall continue in full force and effect.

**24.** **SUB PLAN FOR PARTICIPANTS SUBJECT TO ISRAELI TAXATION** 

Any Participants who are resident in Israel shall be subject to the Sub Plan attached hereto as Appendix "A" (the "**102 Plan**"). For greater certainty any issuances to Participants subject to the 102 Plan shall only be issuable provided they do not contradict the regulations of the Exchange.

**25.** **ENTIRE PLAN** 

This Plan constitutes the entire stock option plan for the Corporation and its Participants and supersedes any prior stock option plans for such persons.

**APPENDIX "A"**

**A2Z SMART TECHNOLOGIES CORP.**

**STOCK OPTION PLAN**

**<u>SUB-PLAN FOR PARTICIPANTS SUBJECT TO ISRAELI TAXATION</u>**

This Sub-Plan ("**Sub-Plan**") to the A2Z Smart Technologies Corp. Stock Option Plan (the "**Plan**") is hereby established effective in accordance with Section 21 of the Plan.

**1.** **DEFINITIONS** 

As used herein, the following terms shall have the meanings hereinafter set forth, unless the context clearly indicates to the contrary. Any capitalized term used herein which is not specifically defined in this Sub-Plan shall have the meaning set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;1.1. "**Controlling Shareholder**" – shall have the meaning ascribed to such term in Section 32(9) of the Ordinance.

&nbsp;&nbsp;&nbsp;&nbsp;1.2. "**Eligible 102 Participants**" – employees or officers of the Corporation which are not classified as Controlling Shareholders,
 before the grant of the Options and/or after such grant.

&nbsp;&nbsp;&nbsp;&nbsp;1.3. "**Ordinance** "
 – the Israeli Income Tax Ordinance [New Version], 1961, and the rules and regulations promulgated thereunder, including without
 limitation, the Income Tax Rules (Tax benefits in Stock Issuance to Employees) 5763-2003, as are in effect from time to time, and
 any similar successor rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;1.4. "**Section 102**" – Section 102 of the Ordinance and the rules and regulations promulgated thereunder, as are in effect from time
 to time, and any similar successor rules and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;1.5. "**Subsidiary** "
 – for purposes of eligibility under the Sub-Plan shall have the meaning of the term in the Plan, provided however that any
 Subsidiary shall be an "employing Corporation" within the meaning of such term in Section 102.

&nbsp;&nbsp;&nbsp;&nbsp;1.6. "**Trustee** "
 – the trustee designated or replaced by the Corporation and/or applicable Subsidiary for the purposes of the Plan and this
 Sub-Plan and grants under Section 102 made thereunder and approved by the Israeli Tax Authorities all in accordance with the provisions
 of Section 102.

**2.** **GENERAL** 

&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 purpose of this Sub-Plan is to establish certain rules and limitations applicable to options to purchase Common Shares ()"**Options** ")
 granted to Participants, the grant of Options to whom (or the exercise or transfer thereof by whom) are subject to taxation in Israel
 ()"**Israeli Participants** "), in order that such options may comply with the requirements of Israeli law, including,
 if applicable, Section 102.

&nbsp;&nbsp;&nbsp;&nbsp;2.2. The
 Plan and this Sub-Plan are complementary to each other and shall be read and deemed as one. In the event of any contradiction, whether
 explicit or implied, between the provisions of this Sub-Plan and the Plan, the provisions of this Sub-Plan shall prevail with respect
 to Options granted to Israeli Participants.

&nbsp;&nbsp;&nbsp;&nbsp;2.3. Options
 may be granted under this Sub-Plan in one of the following tax tracks, at the Corporation's discretion and subject to applicable
 restrictions or limitations as provided in applicable law including without limitation any applicable restrictions and limitations
 in Section 102 regarding the eligibility of Israeli Participants to each of the following tax tracks, based on their capacity and
 relationship towards the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. "**102 Trustee Option**" – an Option granted through a Trustee in accordance with and pursuant to Section 102 in one of the
 following tax tracks: (i) the tax alternative set forth in Section 102(b)(2)/(3) of the Ordinance pursuant to which income resulting
 from the sale or transfer from the Trustee of Common Shares derived from 102 Trustee Options is intended to be taxed as a capital
 gain, subject to meeting the required conditions thereunder ()"**Capital Gains Track**") or (ii) the tax alternative
 set forth in Section 102(b)(1) of the Ordinance pursuant to which income resulting from the sale or transfer from the Trustee of
 Common Shares derived from 102 Trustee Options is taxed as ordinary income ()"**Ordinary Income Track** "); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. "**102 Non-Trustee Option**" – an Option granted not through a Trustee in accordance with and pursuant to Section 102; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. "**3(i) Option**" – an Option granted pursuant to Section 3(i) of the Ordinance.

**3.** **ADMINISTRATION** 

Without derogating from the powers and authorities of the Board detailed in the Plan, the Board shall have the sole and full discretion and authority, without the need to submit its determinations or actions to the shareholders of the Corporation for their approval or authorization, unless such approval is required to comply with applicable mandatory law, to administer this Sub-Plan and to take all actions related hereto and to such administration, including without limitation the performance, from time to time and at any time, of any and all of the following: (a) the determination of the specific tax track (as described in Section 2.3 above) in which the Options are to be issued; (b) the election by the Corporation, with respect to grant of 102 Trustee Options, of either one of the following tax tracks – "Capital Gains Track" or "Ordinary Income Track", as provided in and in accordance with Section 102 (the "**Election**"); (c) the appointment of the Trustee; and (d) the adoption of forms of Notice to be applied with respect to Israeli Participants, incorporating and reflecting, inter alia, relevant provisions regarding the grant of Options in accordance with this Sub-Plan, and the amendment or modification from time to time of the terms of such Notice.

**4.** **SECTION 102 ELECTION** 

&nbsp;&nbsp;&nbsp;&nbsp;4.1. 102
 Trustee Options shall be granted pursuant to either (a) Section 102(b)(2)/(3) of the Ordinance as Capital Gains Track or (b) Section
 102(b)(1) of the Ordinance as Ordinary Income Track. The Corporation's Election regarding the type of 102 Trustee Option it
 chooses to make shall be filed with the Israeli Tax Authority (the "**ITA** "). Once the Corporation has filed such
 Election, it may change the type of 102 Trustee Options that it chooses to make only after the lapse of at least 12 months from the
 end of the calendar year in which the first grant was made in accordance with the previous Election, in accordance with Section 102.
 For the avoidance of doubt, such Election shall not prevent the Corporation from granting 102 Non-Trustee Option to Eligible 102
 Participants at any time.

&nbsp;&nbsp;&nbsp;&nbsp;4.2. Eligible
 102 Participants may receive only 102 Trustee Options or 102 Non-Trustee Options under this Sub-Plan. Israeli Participants who are
 not Eligible 102 Participants may be granted only 3(i) Options under this Sub-Plan.

&nbsp;&nbsp;&nbsp;&nbsp;4.3. The
 Notice shall indicate whether the grant is a 102 Trustee Option, a 102 Non-Trustee Option or a 3(i) Option; and, if the grant is
 a 102 Trustee Options, the Election of tax track.

**5.** **102 TRUSTEE OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;5.1. Notwithstanding
 anything to the contrary in the Plan, 102 Trustee Options granted hereunder shall be granted to, and the Common Shares issued pursuant
 thereto and all rights attached thereto (including bonus shares), shall be issued to the Trustee, and all such Options and Common
 Shares shall be registered in the name of the Trustee, who shall hold them in trust until such time as they are released by the transfer
 or sale thereof by the Trustee which will be at least such period of time as required by the provisions of Section 102 applicable
 to 102 Trustee Options (the "**Restricted Period** "). In case the requirements of Section 102 for 102 Trustee Options
 are not met, then the 102 Trustee Options may be regarded as 102 Non-Trustee Options, all in accordance with the provisions of Section

&nbsp;&nbsp;&nbsp;&nbsp;5.2. Notwithstanding
 anything to the contrary in the Plan, the date of grant of a 102 Trustee Option shall be the date of the resolution of the Board
 approving the grant of such Options, which in the case of 102 Trustee Options shall not be before the lapse of 30 days (or such other
 period which may be determined by the Ordinance from time to time) from the date upon which the Plan is first submitted to the ITA.

&nbsp;&nbsp;&nbsp;&nbsp;5.3. Subject
 to the provisions of Section 102 and any rules or regulation or orders or procedures promulgated thereunder, the Israeli Participant
 shall provide the Corporation and the Trustee with a written undertaking and confirmation under which the Israeli Participant confirms
 that he/she is aware of the provisions of Section 102 and the elected tax track and agrees to the provisions of the trust agreement
 between the Corporation and the Trustee, and undertakes not to release, by sale or transfer, the 102 Trustee Options, and the Common
 Shares issued pursuant thereof, and all rights attached thereto (including bonus shares) prior to the lapse of the Restricted Period.
 The Israeli Participant shall not be entitled to sell or release from trust the 102 Trustee Options, nor the Common Shares issued
 pursuant thereof, nor any right attached thereto (including bonus shares), nor to request the transfer or sale of any of the same
 to any third party, before the lapse of the Restricted Period. Notwithstanding the above, if any such sale or transfer occurs during
 the Restricted Period, the sanctions under Section 102 of the Ordinance and under any rules or regulation or orders or procedures
 promulgated thereunder shall apply to and shall be borne by such Israeli Participant.

5.4. Without
 derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the Notice and applicable
 law, the Trustee shall not release, by sale or transfer, the Common Shares issued pursuant to 102 Trustee Options, and all rights
 attached thereto to the Israeli Participant, or to any third party to whom the Israeli Participant wishes to sell the Common Shares
 (unless the contemplated transfer is by will or laws of descent) unless and until the Trustee has either (a) withheld payment of
 all taxes required to be paid upon the sale or transfer thereof, if any, or (b) received confirmation either that such payment, if
 any, was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Corporation
 and the Trustee.

5.5. Without
 derogating from the provisions of the Plan, it is hereby further clarified that with respect to Common Shares issued pursuant to
 102 Trustee Options, as long as they are registered in the name of the Trustee, the Trustee shall be the registered owner of such
 Common Shares. Notwithstanding, the Trustee shall not exercise the voting rights conferred by such Common Shares in any way whatsoever,
 and shall issue a proxy to the Israeli Participant to vote such shares, subject to and in accordance with the provisions of Section

5.6. Cash
 dividends paid or distributed, if any, with respect to Common Shares issued pursuant 102 Trustee Options shall be remitted directly
 to the Israeli Participant who is entitled to the 102 Trustee Options for which the dividends are being paid or distributed, subject
 to any applicable taxation on such distribution of dividend, and the withholding thereof, and when applicable, subject to the provisions
 of Section 102.

5.7. All
 bonus shares to be issued by the Corporation, if any, with regard to Common Shares issued pursuant to 102 Trustee Options, while
 held by the Trustee, shall be registered in the name of the Trustee; and all provisions applying to such Common Shares shall apply
 to bonus shares issued by virtue thereof, if any, *mutatis mutandis*. Said bonus shares shall be subject to the Restricted Period
 of the 102 Trustee Options by virtue of which they were issued.

5.8. The
 Corporation shall be under no duty to ensure, and no representation or commitment is made, that any of the Options qualifies or will
 qualify under any particular tax treatment (such as Section 102), nor shall the Corporation be required to take any action for the
 qualification of any of the Options under such tax treatment. The Corporation shall have no liability of any kind or nature in the
 event that, for any reason whatsoever, the Options do not qualify for any particular tax treatment.

5.9. Solely
 for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Ordinance, if on the date of grant the Corporation's
 Common Shares are listed on any established stock exchange or a national market system or if the Corporation's Common Shares
 will be registered for trading within ninety (90) days following the date of grant of 102 Trustee Options, the fair market value
 of the Common Shares at the date of grant shall be determined in accordance with the average value of the Corporation's Common
 Shares on the thirty (30) trading days preceding the date of grant or on the thirty (30) trading days following the date of registration
 for trading, as the case may be.

5.10. Notwithstanding
 the provisions of the Plan: (i) payment of the exercise price with respect to 102 Trustee Option (if applicable) shall be made solely
 in cash, unless and to the extent permitted under Section 102 or as expressly authorized by the ITA; (ii) 102 Trustee Options may
 be settled for Shares only and not for cash.

**6.** **102 NON-TRUSTEE OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;6.1. 102
 Non-Trustee Options granted hereunder shall be granted to, and the Common Shares issued pursuant to the exercise thereof, issued
 to, the Israeli Participant.

&nbsp;&nbsp;&nbsp;&nbsp;6.2. Without
 derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the Notice and applicable
 law, the Common Shares issued pursuant to the exercise of the 102 Non-Trustee Options, and all rights attached thereto shall not
 be transferred unless and until the Corporation has either (a) withheld payment of all taxes required to be paid upon the sale or
 transfer thereof, if any, or (b) received confirmation either that such payment, if any, was remitted to the tax authorities or of
 another arrangement regarding such payment, which is satisfactory to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;6.3. An
 Israeli Participant to whom 102 Non-Trustee Options are granted must provide, upon termination of his/her employment, a surety or
 guarantee to the satisfaction of the Corporation, to secure payment of all taxes which may become due upon the future transfer of
 his/her Common Shares to be issued pursuant to 102 Non-Trustee Options, all in accordance with the provisions of Section 102.

**7.** **3(I) OPTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;7.1. 3(i)
 Options granted hereunder shall be granted to, and the Common Shares issued pursuant thereto issued to, the Israeli Participant.

&nbsp;&nbsp;&nbsp;&nbsp;7.2. Without
 derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the Notice and applicable
 law, the 3(i) Options cannot be exercised unless and until the Corporation has either (a) withheld payment of all taxes required
 to be paid upon the exercise thereof, if any, or (b) received confirmation either that such payment, if any, was remitted to the
 tax authorities or of another arrangement regarding such payment, which is satisfactory to the Corporation.

**8.** **TAX CONSEQUENCES** 

&nbsp;&nbsp;&nbsp;&nbsp;8.1. Without
 derogating from and in addition to any provisions of the Plan, any and all tax and/or other mandatory payment consequences arising
 from the grant, exercise or vesting of Options, the payment for or the transfer or sale of Common Shares, or from any other event
 or act in connection therewith (including without limitation, in the event that the Options do not qualify under the tax classification/tax
 track in which they were intended) whether of the Corporation, a Subsidiary, the Trustee or the Israeli Participant, including without
 limitation any non-compliance of the Israeli Participant with the provisions hereof, shall be borne solely by the Israeli Participant.
 The Corporation, any applicable Subsidiary, and the Trustee, may each withhold (including at source), deduct and/or set-off, from
 any payment made to the Israeli Participant, the amount of the taxes and/or other mandatory payments of which is required with respect
 to the Options and/or Common Shares. Furthermore, each Israeli Participant shall indemnify the Corporation, the applicable Subsidiary
 and the Trustee, or any one thereof, and hold them harmless from any and all liability for any such tax and/or other mandatory payments
 or interest or penalty thereupon, including without limitation liabilities relating to the necessity to withhold, or to have withheld,
 any such tax and/or other mandatory payments from any payment made to the Israeli Participant.

&nbsp;&nbsp;&nbsp;&nbsp;8.2. Without
 derogating from the aforesaid, each Israeli Participant shall provide the Corporation and/or any applicable Subsidiary with any executed
 documents, certificates and/or forms that may be required from time to time by the Corporation or such Subsidiary in order to determine
 and/or establish the tax liability of such Israeli Participant.

&nbsp;&nbsp;&nbsp;&nbsp;8.3. Without
 derogating from the foregoing, it is hereby clarified that the Israeli Participant shall bear and be liable for all tax and other
 consequences in the event that his/her 102 Trustee Options and/or the Common Shares issued pursuant to the exercise thereof are not
 held for the entire Restricted Period, all as provided in Section 102.

&nbsp;&nbsp;&nbsp;&nbsp;8.4. The
 Corporation and/or, when applicable, the Trustee shall not be required to release any share certificate to an Israeli Participant
 until all required payments have been fully made.

**9.** **SUBORDINATION TO THE ORDINANCE** 

&nbsp;&nbsp;&nbsp;&nbsp;9.1. It
 is clarified that the grant of the 102 Trustee Options hereunder is subject to the filing with the ITA of the Plan and this Sub-Plan,
 in accordance with Section 102.

&nbsp;&nbsp;&nbsp;&nbsp;9.2. Any
 provisions of Section 102 or Section 3(i) of the Ordinance and/or any of the rules or regulations promulgated thereunder, which are
 not expressly specified in the Plan or in the applicable Notice, including without limitation any such provision which is necessary
 in order to receive and/or to keep any tax benefit, including but not limited any tax ruling received in connection with the Plan
 and this Sub-Plan, and any approval or guidance issued by the ITA shall be deemed incorporated into this Sub-Plan and binding upon
 the Corporation, any applicable Subsidiary and the Israeli Participant and shall be considered binding upon the Corporation and the
 Participants.

&nbsp;&nbsp;&nbsp;&nbsp;9.3. The
 Options, the Plan, this Sub-Plan and any applicable Notice are subject to the applicable provisions of the Ordinance, which shall
 be deemed an integral part of each, and which shall prevail over any term that is inconsistent therewith.

**10.** **GOVERNING LAW & JURISDICTION** 

This Sub-Plan shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect to the principles of conflict laws. The competent courts of the central district and/or the competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters pertaining to this Sub-Plan.

## Exhibit 4.8

**Exhibit 4.8**

**2023 RESTRICTED SHARE UNIT PLAN**

The purpose of this Plan is to advance the interests of the Company by: (i) providing Eligible Persons with incentives; (ii) rewarding performance by Participants; (iii) increasing the proprietary interest of Participants in the success of the Company; (iv) encouraging Participants to remain with the Company or its Affiliates; (v) attracting new directors, employees, officers and Consultants; and; (vi) aligning the interests of the Participants with those of the shareholders of the Company.

**Article 1<br> INTERPRETATION**

**Section 1.1 <u>Interpretation</u>**

For the purposes of this Plan, the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Affiliate** "
 has the meaning ascribed to that term in Policy 1.1;

(b) "**Applicable Law**" means the requirements relating to the administration of restricted share unit plans under the applicable corporate
 and securities laws of British Columbia and Canada, any Stock Exchange or quotation system on which the Shares are listed or quoted
 and the applicable laws of any foreign country or jurisdiction which apply to RSUs granted under the Plan

(c) "**Associate** "
 has the meaning ascribed to that term in Policy 1.1;

(d) "**Board** "
 means the board of directors of the Company as constituted from time to time;

(e) "**Business Day**" means a day, other than a Saturday or Sunday, on which banking institutions in Toronto, Ontario are not authorized
 or obligated by law to close;

(f) "**Cause** ",
 the existence of which will be determined in good faith by the Board or a designee of the Board, with respect to a Participant shall,
 if such Participant has entered into a service or employment agreement with the Company or an Affiliate that is in effect, have the
 meaning given to the term in that agreement, or, if no such agreement exists, or if "Cause" is not defined therein, then
 Cause shall include such Participant's:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) willful
 misconduct of the Participant with regard to the Company, or an Affiliate, which constitutes a material breach of any of his or her
 obligations set forth in any written agreement governing the terms of the Participant's service as the same may then be in
 effect and such breach, if curable, has not been cured within fifteen (15) days after written notice by the Company, or the affected
 Affiliate, to the Participant;

(ii) fraud,
 embezzlement, theft or other material dishonesty by the Participant with respect to the Company, or an Affiliate;

(iii) the
 Participant's material breach of his or her fiduciary duties as an officer or manager of the Company, or an Affiliate, or as
 an officer, trustee, director or other fiduciary of any pension or benefit plan of the Company, or an Affiliate, or willful misconduct
 which has, or could reasonably be expected to have, a material adverse effect upon the business, interests or reputation of the Company,
 or an Affiliate, and such breach or conduct, if curable, has not been cured within fifteen (15) days after written notice by the
 Company, or the affected Affiliate, to the Participant;

(iv) the
 Participant's indictment for, or a plea of *nolo contendere* to, any felony or an analogous provision under the laws of
 a local jurisdiction; or

(v) refusal
 or failure by the Participant to attempt in good faith to follow or carry out the reasonable written instructions of the Board which
 failure, if curable, does not cease within fifteen (15) days after written notice of such failure is given to the Participant by
 the Board. For purposes of this paragraph, no act, or failure to act, on the Participant's part shall be considered "willful"
 unless done or omitted to be done by him or her not in good faith and without reasonable belief that his or her action or omission
 was in the best interests of the Company;

Notwithstanding the foregoing, to the extent that an alternative definition of Cause is provided in the Participant's Grant Certificate, "Cause" shall have the meaning assigned thereto; provided that any alternative definition of Cause in the Grant Certificate shall govern and supersede any alternative definition of Cause in any applicable service or employment agreement to the extent of any inconsistencies between such definitions;

&nbsp;&nbsp;&nbsp;&nbsp;(g) "**Change of Control Event** ", shall, if such Participant has entered into a service or employment agreement with the Company or an
 Affiliate that is in effect, have the meaning given to the term in that agreement, or, if no such agreement exists, or if "Change
 of Control" is not defined therein, means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 reorganization, amalgamation, merger or plan of arrangement in connection with any of the foregoing, other than solely involving
 the Company and one or more of its Affiliates, with respect to which all or substantially all of the persons who were the beneficial
 owners of the Shares immediately prior to such reorganization, amalgamation, merger or plan of arrangement do not, following such
 reorganization, amalgamation, merger or plan of arrangement beneficially own, directly or indirectly, more than 50 percent of the
 resulting voting shares on a fully-diluted basis;

(ii) the
 acquisition of Shares by a person or group of persons acting in concert (other than the Company or an Affiliate) as a result of which
 the offeror and its affiliates beneficially own, directly or indirectly, 50 percent or more of the Shares then outstanding; or

(iii) the
 sale to a person other than an Affiliate of all or substantially all of the Company's assets;

Notwithstanding the foregoing, to the extent that an alternative definition of Change of Control Event is provided in the Participant's Grant Certificate, "Change of Control Event" shall have the meaning assigned thereto; provided that any alternative definition of Change of Control Event in the Grant Certificate shall govern and supersede any alternative definition of Cause in any applicable service or employment agreement to the extent of any inconsistencies between such definitions;

&nbsp;&nbsp;&nbsp;&nbsp;(h) "**COC Date**" means the date of any Change of Control Event.

(i) "**Company** "
 means A2Z Smart Technologies Corp. and its respective successors and assigns, and any reference in the Plan to action by the Company
 means action by or under the authority of the Board or any person or committee that has been designated for the purpose by the Company;

(j) "**Consultant** "
 has the meaning ascribed to that term in Policy 4.4 of the TSXV and any amendment thereto or replacement thereof;

(k) "**Date of Grant**" means the date on which a particular Restricted Share Unit is granted by the Board as evidenced by the Grant
 Certificate pursuant to which the particular Restricted Share Unit was granted;

(l) "**Disinterested Shareholder Approval**" means the approval of a majority of Shareholders of the Company voting at a duly called and held
 meeting of such Shareholders, excluding votes of Insiders (including Affiliates and Associates of such Insiders) to whom RSUs may
 be granted under the Plan.

(m) "**Effective Date**" has the meaning ascribed in Section 2.3;

(n) "**Eligible Person**" means any director, officer, bona fide employee, management company employee or Consultant of the Company or any
 of its Affiliates and any such person's personal holding company, as designated by the Board in a resolution;

&nbsp;&nbsp;&nbsp;&nbsp;(o) "**Expire** "
 means, with respect to a Restricted Share Unit, the termination of such Restricted Share Unit, on the occurrence of which such Restricted
 Share Unit is void, incapable of settlement, and of no value whatsoever; and Expires and Expired have a similar meaning;

(p) "**Fair Market Value**" means, on any particular day, the Market Price of a Share, but if the Shares are not listed and posted for
 trading on the Stock Exchange at the relevant time, it shall be the fair market value of the Share, as determined by the Board acting
 in good faith;

(q) "**Good Leaver Termination**" means the termination of the Participant's service with the Company, or an Affiliate, without
 Cause or due to the Participant's resignation with Good Reason;

(r) "**Good Reason** ", the existence of which will be determined in good faith by the Board or a designee of the Board, with respect
 to a Participant shall, if such Participant has entered into a service or employment agreement with the Company or an Affiliate that
 is in effect, have the meaning given to the term in that agreement, or, if no such agreement exists, or if "Good Reason"
 is not defined therein, then Good Reason means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) without
 the express written consent of the Participant, any change or series of changes in the responsibilities, authority, status or reporting
 relationship of the Participant with the Company, or an Affiliate, such that immediately after such change or series of changes,
 the responsibilities, authority, status or reporting relationship of the Participant, taken as a whole, are not at least substantially
 equivalent to those assigned to the Participant immediately prior to such change or series of changes, excluding for this purpose
 an isolated and inadvertent action not taken in bad faith and which is remedied by the Company, or an Affiliate, promptly after receipt
 of notice thereof given by the Participant;

(ii) a
 reduction by the Company, or an Affiliate, in the Participant's annual base salary, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) as
 part of a general reduction in the base salary of all or substantially all of the senior executives of the Company, or an Affiliate,
 which affects the Participant in substantially the same manner as the other senior executives who are also affected by such general
 reduction; and

(B) which
 reduction does not constitute more than 10% of his or her base salary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 taking of any action by the Company, or an Affiliate, which would materially adversely affect the Participant's participation
 in or materially reduce the Participant's benefits, except, in any such case, as part of a general reduction in benefits of
 all or substantially all of the senior executives of the Company, or an Affiliate, which affects the Participant in substantially
 the same manner as the other senior executives who are also affected by such general reduction; or

(iv) any
 requirement by the Company, or an Affiliate, that the Participant's principal office be relocated to a location which is more
 than 50 kilometres from his or her then current location, provided that the Participant has not acquiesced or agreed to such relocation;

Notwithstanding the foregoing, to the extent that an alternative definition of Good Reason is provided in the Participant's Grant Certificate, "Good Reason" shall have the meaning assigned thereto; provided that any alternative definition of Cause in the Grant Certificate shall govern and supersede any alternative definition of Good Reason in any applicable service or employment agreement to the extent of any inconsistencies between such definitions;

&nbsp;&nbsp;&nbsp;&nbsp;(s) "**Insiders** "
 has the meaning ascribed thereto in the policies of the Stock Exchange;

(t) "**Investor Relations Activities**" has the meaning given to such term in Policy 1.1 of the TSXV and any amendment thereto or replacement
 thereof;

(u) "**Grant Certificate**" means a certificate of the Company under which a Restricted Share Unit is granted, substantially in the form
 attached hereto as Schedule "A", as may be amended from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;(v) "**Market Price**" has the meaning ascribed to that term in Policy 1.1;

(w) "**Outstanding Shares**" means that number of Shares outstanding, on a non-diluted basis, at any point in time as confirmed by the transfer
 agent and registrar for the Shares.

(x) "**Participant** "
 means an Eligible Person to whom a Restricted Share Unit has been granted;

(y) "**Performance Criteria**" means criteria established by the Board in respect of each RSU grant, if any, which, without limitation, may
 include criteria based on the financial performance of the Company and/or any Affiliate.

(z) "**Plan** "
 means this Restricted Share Unit Plan, as amended from time to time;

(aa) "**Policy 1.1**" means Policy 1.1 of the TSXV and any amendments thereto or replacement thereof;

(bb) "**Policy 4.4**" means Policy 4.4 of the TSXV and any amendments thereto or replacement thereof;

(cc) "**Restricted Share Unit**" and "**RSU**" mean a unit granted or credited to a Participant's notional account pursuant
 to the terms of this Plan that, subject to the provisions hereof, entitles a Participant to receive RSU Shares or, in lieu of RSU
 Shares (in the sole discretion of the Board), an amount of cash equal to the Fair Market Value of the RSU Share on the Settlement
 Date.

(dd) "**RSU Shares**" means the Shares delivered to the Participant in accordance with the provisions of the Plan in settlement of RSUs
 under this Plan.

(ee) "**Share** "
 or "**Common Shares**" means a common share in the capital of the Company, and includes any shares of the Company
 into which such shares may be converted, reclassified, redesignated, subdivided, consolidated, exchanged or otherwise changed;

(ff) "**Shareholders** "
 means holders of Shares;

(gg) "**Source Deductions**" has the meaning given to that term in Section 2.4;

(hh) "**Special Value**" has the meaning given to that term in Section 4.3;

(ii) "**Stock Exchange**" means the TSXV or, if the Shares are not listed or posted for trading on the TSXV, the Stock Exchange on which
 the Shares are listed or posted for trading;

(jj) "**Termination Date**" means the date on which a Participant ceases to be an Eligible Person as a result of a termination of employment
 with the Company or an Affiliate for any reason, including death, retirement, resignation, or Cause. For the purposes of the Plan,
 a Participant's employment with the Company or an Affiliate shall be considered to have terminated effective on the last day
 of the Participant's actual and active employment with the Company or Affiliate whether such day is selected by agreement with
 the individual, unilaterally by the Company or Affiliate and whether with or without advance notice to the Participant. For the avoidance
 of doubt, no period of notice or pay in lieu of notice that is given or that ought to have been given under applicable law in respect
 of such termination of employment that follows or is in respect of a period after the Participant's last day of actual and
 active employment shall be considered as extending the Participant's period of employment for the purposes of determining his
 or her entitlement under the Plan;

(kk) "**Transfer** "
 includes without limitation any sale, exchange, assignment, gift, disposition, mortgage, charge, pledge, encumbrance, grant of security
 interest or other arrangement by which possession, legal title, beneficial ownership or the risk of economic exposure passes from
 one person to another, or to the same person in a different capacity, whether or not voluntary and whether or not for value, and
 any registered security interest or other agreement in connection with, or to effect, any of the foregoing;

(ll) "**TSXV** "
 means the TSX Venture Exchange; and

&nbsp;&nbsp;&nbsp;&nbsp;(mm) "**Vesting Date**" means the date or dates determined in accordance with the terms of the Grant Certificate entered into in respect
 of such Restricted Share Units (as described in Section 3.4, on and after which a particular Restricted Share Unit may be settled,
 subject to amendment or acceleration from time to time in accordance with the terms hereof.

In the Plan, words importing the singular number shall include the plural and vice versa.

**Article 2<br> GENERAL PROVISIONS**

**Section 2.1 <u>Administration</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Board shall administer this Plan which shall at all times be subject to Policy 4.4.

(2) The
 Board and the Participant must ensure and confirm that the Participant is a bona fide employee, consultant or management company
 employee.

(3) Subject
 to the terms and conditions set forth herein, the Board has the authority: (i) to grant Restricted Share Units to Eligible Persons;
 (ii) to determine the terms, including the limitations, restrictions, vesting period, Performance Criteria, and conditions, if any,
 upon such grants; (iii) to interpret this Plan and all agreements entered into hereunder; (iv) to adopt, amend and rescind such administrative
 guidelines and other rules relating to this Plan as it may from time to time deem advisable; and (v) to make all other determinations
 and to take all other actions in connection with the implementation and administration of this Plan as it may deem necessary or advisable,
 subject to the rules and policies of the TSXV. The Board's guidelines, rules, interpretations, and determinations shall be
 conclusive and binding upon the Company, its Affiliates, and all Participants, Eligible Persons and their legal, personal representatives
 and beneficiaries.

(4) Notwithstanding
 the foregoing or any other provision contained herein, the board of directors of the Company shall have the right to delegate the
 administration and operation of this Plan, in whole or in part, to a committee and/or to any member thereof. For greater certainty,
 any such delegation by the board of directors may be revoked at any time at the board of directors' sole discretion.

(5) No
 member of the Board or any person acting pursuant to authority delegated by it hereunder shall be liable for any action or determination
 in connection with the Plan made or taken in good faith, and each member of the Board and each such person shall be entitled to indemnification
 by the Company with respect to any such action or determination.

(6) The
 Company will be responsible for all costs related to the administration of the Plan.

(7) The
 Board may adopt such rules or regulations and vary the terms of this Plan and any grant hereunder as it considers necessary to address
 tax or other requirements of any applicable non-Canadian jurisdiction.

(8) The
 maximum number of RSUs which may be issued under this Plan, from time to time, shall be 3,094,532 .

(9) The
 maximum term of any RSU grant shall not exceed ten (10) years.

(10) Shares
 issued pursuant to a RSU grant, do not become available again for grant unless an amendment filing is made and approved by the TSXV.

**Section 2.2 <u>Amendment and Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(1) The
 Board may, in its sole discretion, suspend, terminate, amend or revise the Plan at any time or from time to time amend or revise
 the terms of the Plan or of any Restricted Share Unit granted under the Plan and any Grant Certificate relating thereto, subject
 to any required regulatory approval, provided that such suspension, termination, amendment, or revision will not adversely alter
 or impair any Restricted Share Unit previously granted except as permitted by the terms of this Plan or as required by Applicable
 Laws.

(2) If
 the Plan is terminated, the provisions of the Plan will continue in effect as long as any Restricted Share Unit or any rights pursuant
 thereto remain outstanding and, notwithstanding the termination of the Plan, the Board will remain able to make such amendments to
 the Plan or the Restricted Share Unit as they would have been entitled to make if the Plan were still in effect.

**Section 2.3 <u>Effective Date</u>**

The Plan is established for Eligible Persons, effective on the date that the Plan has been adopted by the Board (the "**Effective Date**") provided, however, that no cash and/or Shares underlying a vested RSU shall be issued by the Company to a Participant in accordance with the Plan prior to the Plan having received the necessary regulatory and Shareholder approvals.

**Section 2.4 <u>Tax Withholdings and Deductions</u>**

Notwithstanding any other provision contained herein, the Company or the relevant Affiliate, as applicable, shall be entitled to withhold from any amount payable to a Participant, either under this Plan or otherwise, such amounts as may be necessary so as to ensure that the Company or the relevant Affiliate is in compliance with the applicable provisions of any federal, provincial or local law relating to the withholding of tax or other required deductions relating to the settlement of any Restricted Share Units (the "Source Deductions"). The Company or the relevant Affiliate, as applicable, shall have the right in its discretion to satisfy any such Source Deductions by retaining or acquiring any Shares which would otherwise be issued or provided to a Participant hereunder, or withholding any portion of any cash amount payable to a Participant hereunder. The Company or the relevant Affiliate, as applicable, shall also have the right to withhold the delivery of any RSUs and RSU Shares and any cash payment payable to a Participant hereunder unless and until such Participant pays to the Company or the relevant Affiliate, as applicable, a sum sufficient to indemnify the Company or the relevant Affiliate, as applicable, for any liability to withhold tax in respect of the amounts included in the income of such Participant as a result of the settlement of RSUs under this Plan, to the extent that such tax is not otherwise being withheld from payments to such Participant by the Company or the relevant Affiliate, as applicable.

**Section 2.5 <u>Non-Transferability and Assignability</u>**

No Transfer or assignment of Restricted Share Units, whether voluntary, involuntary, by operation of law or otherwise (other than upon the death of the Participant), vests any interest or right in such Restricted Share Units whatsoever in any assignee or transferee.

**Section 2.6 <u>Participation in this Plan</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(1) A
 Restricted Share Unit granted hereunder shall not be deemed to give any Participant any interest or title or any rights as a Shareholder
 or any other legal or equitable right against the Company, or any of its Affiliates whatsoever, including without limitation, the
 right to vote as a Shareholder and the right to participate in any new issue of Shares to existing holders of Shares.

(2) Participants
 (and their legal personal representatives) shall have no legal or equitable rights, claims, or interest in any specific property
 or assets of the Company or any Affiliate by virtue of being granted an RSU. No assets of the Company or any Affiliate shall be held
 in any way as collateral security for the fulfillment of the obligations of the Company or any Affiliate under this Plan. The Company's
 or any Affiliate's obligation under this Plan shall be merely that of an unfunded and unsecured promise of the Company or such
 Affiliate to issue Shares or pay money in the future, as applicable, and the rights of Participants (and their legal personal representatives)
 shall be no greater than those of unsecured general creditors.

(3) The
 Plan shall not give any Eligible Person the right or obligation to or to continue to serve as a Consultant, director, officer or
 employee, as the case may be, to or of the Company or any of its Affiliates.

(4) The
 Company makes no representation or warranty as to the future market value of the Shares or with respect to any income tax matters
 affecting the Participant resulting from the grant or settlement of a Restricted Share Unit or transactions in the Shares. With respect
 to any fluctuations in the market value of Shares, neither the Company, nor any of its directors, officers, employees, shareholders
 or agents shall be liable for anything done or omitted to be done by such person or any other person with respect to the price, time,
 quantity or other conditions and circumstances of the issuance of Shares hereunder, or in any other manner related to the Plan. For
 greater certainty, no amount will be paid to, or in respect of, a Participant under the Plan or pursuant to any other arrangement,
 and no additional Restricted Share Units will be granted to such Participant to compensate for a downward fluctuation in the price
 of the Shares, nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose.

**Section 2.7 <u>Notice</u>**

Any notice required to be given by this Plan shall be in writing and shall be given by registered mail, postage prepaid, or delivered by courier, by facsimile transmission or by electronic mail addressed, if to the Company, to the office of the Company in Toronto, Ontario, Attention: Corporate Secretary; or if to a Participant, to such Participant at his or her address as it appears on the books of the Company or in the event of the address of any such Participant not so appearing, then to the last known address of such Participant; or if to any other person, to the last known address of such person.

**Section 2.8 <u>Governing Law</u>**

The Plan shall be governed by the laws of British Columbia and the federal laws of Canada applicable therein.

**Article 3<br> Restricted Share Units**

**Section 3.1 <u>Grant</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Subject
 to the provisions of this Plan, the Board may grant Restricted Share Units to any Eligible Person upon the terms, conditions and
 limitations set forth herein and such other terms, conditions and limitations permitted by and not inconsistent with this Plan as
 the Board may determine.

(2) The
 grant of a Restricted Share Unit shall be evidenced by a Grant Certificate, signed on behalf of the Company.

(3) The
 Company shall maintain a notional account for each Participant, in which shall be recorded the number of vested and unvested Restricted
 Share Units granted or credited to such Participant.

**Section 3.2 <u>Grant Limitations</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Notwithstanding
 anything to the contrary herein, grants of Restricted Share Units shall be subject to the following limitations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 aggregate number of Restricted Share Units and all other Security Based Compensation Plans granted to any one Eligible Person (and
 companies wholly owned by that Eligible Person) in a 12-month period must not exceed 5% of the Shares, calculated on the date a Restricted
 Share Unit is granted to the Eligible Person (unless the Company has obtained the requisite Disinterested Shareholder Approval);

(b) the
 aggregate number of Restricted Share Units and all other Security Based Compensation Plans granted to Insiders, as a group, (and
 companies wholly owned by Insiders) at any time must not exceed 10% of the Shares, (unless the Company has obtained the requisite
 Disinterested Shareholder Approval;

(c) the
 aggregate number of Restricted Share Units and all other Security Based Compensation Plans granted to Insiders, as a group, (and
 companies wholly owned by Insiders) in a 12-month period must not exceed 10% of the Shares, calculated on the date a Restricted Share
 Unit or other Security Based Compensation is granted to Insiders (unless the Company has obtained the requisite Disinterested Shareholder
 Approval;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 aggregate number of Restricted Share Units and all other Security Based Compensation Plans granted to any one Consultant in a 12-month
 period must not exceed 2% of the Shares of the Company, calculated at the date a Restricted Share Unit is granted to the Consultant;
 and

(e) persons
 involved in Investor Relations Activities are not eligible to receive Restricted Share Units.

**Section 3.3 <u>Dividend Equivalents</u>**

Each Participant's notional account shall, from time to time, be credited with additional Restricted Share Units (including fractional Restricted Share Units), the number of which shall be determined by dividing:

&nbsp;&nbsp;&nbsp;&nbsp;(1) the
 product obtained by multiplying the amount of each dividend declared and paid by the Company on the Shares on a per share basis (excluding
 stock dividends, but including dividends which may be paid in cash or in shares at the option of the shareholder) by the number of
 Restricted Share Units recorded in the Participant's notional account (whether vested or unvested) on the record date for payment
 of any such dividend,

by

&nbsp;&nbsp;&nbsp;&nbsp;(2) the
 Fair Market Value of a Share on the dividend payment date for such dividend,

provided however that the Board shall not be obligated to issue fractional RSUs.

Without derogating from the foregoing, the maximum number of Common Shares issuable pursuant to this Plan will be included in calculating the limits set forth in all security-based compensation plans of the Company and those limitations listed in Sections 3.2 of this Plan, provided further that if the Company does not have sufficient Common Shares to satisfy its obligations due to the foregoing limitation restrictions the Company shall have the ability to make cash payments in lieu of the issuance of securities.

**Section 3.4 <u>Capital Adjustment</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 existence of this Plan and any RSU granted hereunder shall not affect in any way the right and power of the Company or its shareholders
 to make, authorize or determine any adjustment, recapitalization, reorganization, or any other change in the Company's capital
 structure or its business, or any amalgamation, combination, merger or consolidation involving the Company, to create or issue any
 bonds, debentures, Shares or other securities of the Company or to determine the rights and conditions attaching thereto, to effect
 the dissolution or liquidation of the Company 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 Subsection 3.3(a) would have an adverse effect on this Plan or any RSU granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 there is any change in the outstanding Shares by reason of a split, recapitalization, consolidation, combination or exchange of shares
 or other similar corporate change, other than a Change of Control Event, subject to any prior approval required of applicable regulatory
 authorities, the Board may make appropriate substitution or adjustment in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 number of RSUs reserved for issuance pursuant to the Plan; and

(ii) the
 number of unvested RSUs theretofore granted,

provided, however, that no substitution or adjustment will obligate the Company to issue fractional RSUs. The determination of the Board as to any adjustment, or as to there being no need for adjustment, will be final and binding on all parties concerned.

**Section 3.5 <u>Vesting</u>**

Except as otherwise provided in a Participant's Grant Certificate or any other provision of this Plan all Restricted Share Units granted pursuant hereto shall vest on the later of (i) the date determined by the Board on which the Performance Criteria is achieved, if applicable, or (ii) the first (1st) anniversary of the Date of Grant provided the Participant is continuously employed by or in service with the Company, or any of its Affiliates, from the Date of Grant until such Vesting Date. All Restricted Share Units credited pursuant to this Plan shall vest simultaneously with the Restricted Share Units to which they relate.

**Section 3.6 <u>No Other Rights</u>**

Except as otherwise provided herein this Plan does not provide an Eligible Person any rights as a shareholder of the Company (including without limitation voting rights, dividend entitlement or rights on liquidation) until such time as the underlying Common Shares are issued to such Eligible Person.

**Article 4<br> Settlement & Expiry**

**Section 4.1 <u>Settlement of Restricted Share Units</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Except
 as otherwise provided in a Participant's Grant Certificate or any other provision of this Plan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Settlement
 shall take the form of, to be decided in the sole discretion of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 issuance of Shares, or the purchase of Shares for the benefit of the Participants on the open market or by private transaction, in
 an amount equal to the number of vested Restricted Share Units to be settled on that Vesting Date; provided however, that the Company
 shall not be required to issue and/or cause to be delivered Shares or issue and/or cause to be delivered certificates evidencing
 Shares to be delivered pursuant to this Plan unless and until such issuance and delivery is in compliance with all Applicable Law;
 or

(ii) a
 payment of cash to the Participant of an amount equal to the Fair Market Value of a Share on the Vesting Date, multiplied by the
 number of vested Restricted Share Units to be settled on that Vesting Date, the whole being subject to the terms of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;(2) Following
 receipt of such Shares or payment, as applicable, the Restricted Share Units so settled shall be of no value whatsoever and shall
 be struck from the Participant's notional account.

**Section 4.2 <u>Termination</u>**

&nbsp;&nbsp;&nbsp;&nbsp;(1) Unless
 otherwise provided in the Participant's Grant Certificate, but subject at all times to the 12 month limitation stipulated in
 Section 4.11(i) of Policy 4.4, and regardless of any adverse or potentially adverse tax or other consequences resulting from the
 foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 a Participant ceases to be an Eligible Person as a result of his or her termination with Cause or resignation without Good Reason,
 all unvested Restricted Share Units held by such Participant shall Expire on the Participant's Termination Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 a Participant ceases to be an Eligible Person as a result of his or her Board approved retirement, any unvested Restricted Share
 Units held by such Participant shall continue to vest pro-rata according to the vesting schedule set out in Section 3.4 based on
 the number of completed months of active service or employment between the Date of Grant and the Vesting Date of such Restricted
 Share Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if
 a Participant ceases to be an Eligible Person as a result of his or her Good Leaver Termination, any unvested Restricted Share Units
 held by such Participant shall vest pro-rata on the Participant's Termination Date based on the number of completed months
 of active service or employment between the Date of Grant and the Vesting Date of such Restricted Share Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if
 a Participant ceases to be an Eligible Person as a result of his or her death, any unvested Restricted Share Units held by such Participant
 shall vest on the Participant's Termination Date provided that the entitlement to make a claim by heirs/administrators must
 not exceed 1 year from the Participant's death.

For avoidance of doubt, the Participant's Grant Certificate may permit the acceleration of the vesting of unvested Restricted Share Units upon Termination.

**Section 4.3 <u>Change of Control</u>**

Notwithstanding any other provision of this Plan, in the event of the occurrence of a Change of Control Event, with respect to all RSUs that are outstanding on the COC Date, (i) any and all requirements that any Performance Criteria, if any, be achieved for any purpose applicable to such Grants shall be waived as of the COC Date and (ii) each Participant who has received any RSU grants shall be entitled to receive, in full settlement of a RSU covered by a grant, a payment of cash equal to the Special Value (as defined below) for each RSU multiplied by the number of vested Restricted Share Units to be settled on that COC Date, the whole being subject to the terms of Section 2.4.

The term "**Special Value**" shall mean an amount with respect to each RSU determined as follows:

&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 any Shares are sold as part of the transaction constituting the Change of Control Event, the Special Value shall equal the weighted
 average of the price paid for those Shares by the acquirer, provided that if any portion of the consideration paid for such Shares
 by the acquirer is paid in property other than cash, the Board (as constituted immediately prior to the COC Date) shall determine
 the fair market value of such property as of the COC Date for purposes of determining the Special Value under this Section 4.3; and

(b) if
 no Shares are sold as part of the transaction constituting the Change of Control Event, the Special Value shall equal the Fair Market
 Value.

**Article 5**

**Section 5.1 <u>Sub Plan for Participants Subject to Israeli Taxation</u>**

Any Participants who are resident in Israel shall be subject to the Sub Plan attached hereto as Appendix "A" (the "**102 Plan**"). For greater certainty any issuances to Participants subject to the 102 Plan shall only be issuable provided they do not contradict the regulations of the Exchange.

**SCHEDULE "A"<br> RESTRICTED SHARE UNIT**

**AWARD CERTIFICATE**

---

| | |
|:---|:---|
| **Name:** | **[name and address of Participant]** |
| **Grant Date** | **[insert date]** |

---

A2Z Smart Technologies Corp. (the "**Company**") has adopted the A2Z Smart Technologies Corp. Restricted Share Unit Plan (the "**Plan**"). Your Award is governed in all respects by the terms of the Plan, and the provisions of the Plan are hereby incorporated by reference. Capitalized terms used and not otherwise defined in this Agreement shall have the meanings set forth in the Plan. If there is a conflict between the terms of this Award Certificate and the Plan, the terms of the Plan shall govern.

---

| | |
|:---|:---|
| **Your Award** | The Company hereby grants to you **[**●**]** Restricted Share Units. |
| **Vesting** | Subject to the terms of the Plan, Award of Restricted Share Units shall vest on ●. |
| **Other Terms:** | ● |

---

**PLEASE SIGN AND RETURN A COPY OF THIS AWARD CERTIFICATE TO THE COMPANY.**

By your signature below, you acknowledge (i) that you have received a copy of the Plan and have reviewed, considered and agreed to the terms of this Agreement and the Plan; and (ii) that you have requested and are satisfied that the Plan and the foregoing be drawn up in the English language. *Le soussigné reconnaît qu'il a exigé que le Régime et ce qui précède soient rédigés et exécutés en anglais et s'en déclare satisfait.*

Signature:   Date:  

---

| |
|:---|
| On behalf of the Company: |
| Name: |
| Title: |

---

**APPENDIX "A"**

**A2Z SMART TECHNOLOGIES CORP.**

**RESTRICTED SHARE UNIT PLAN**

**<u>SUB-PLAN FOR PARTICIPANTS SUBJECT TO ISRAELI TAXATION</u>**

This Sub-Plan ("**Sub-Plan**") to the A2Z Smart Technologies Corp., Stock Restricted Share Unit Plan (the "**Plan**") is hereby established effective as of the Effective Date.

**1.** **DEFINITIONS** 

As used herein, the following terms shall have the meanings hereinafter set forth, unless the context clearly indicates to the contrary. Any capitalized term used herein which is not specifically defined in this Sub-Plan shall have the meaning set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;1.1. "**Affiliate** "
 – for purposes of eligibility under the Sub-Plan shall have the meaning of the term in the Plan, provided however that any
 Affiliate shall be an "employing Company" within the meaning of such term in Section 102.

1.2. "**Controlling Shareholder**" – shall have the meaning ascribed to such term in Section 32(9) of the Ordinance.

1.3. "**Eligible 102 Participants**" – employees or officers of the Company which are not classified as Controlling Shareholders, before
 the grant of the Restricted Share Units and/or after such grant.

1.4. "**Ordinance** "
 – the Israeli Income Tax Ordinance [New Version], 1961, and the rules and regulations promulgated thereunder, including without
 limitation, the Income Tax Rules (Tax benefits in Stock Issuance to Employees) 5763-2003, as are in effect from time to time, and
 any similar successor rules and regulations.

1.5. "**Section 102**" – Section 102 of the Ordinance and the rules and regulations promulgated thereunder, as are in effect from time
 to time, and any similar successor rules and regulations.

1.6. "**Trustee** "
 – the trustee designated or replaced by the Company and/or applicable Affiliate for the purposes of the Plan and this Sub-Plan
 and grants under Section 102 made thereunder and approved by the Israeli Tax Authorities all in accordance with the provisions of
 Section 102.

**2.** **GENERAL** 

&nbsp;&nbsp;&nbsp;&nbsp;2.1. The
 purpose of this Sub-Plan is to establish certain rules and limitations applicable to Restricted Share Units granted to Participants,
 the grant of Restricted Share Units to whom (or the settlement or transfer thereof by whom) are subject to taxation in Israel ()"**Israeli Participants** "), in order that such Restricted Share Units may comply with the requirements of Israeli law, including, if
 applicable, Section 102.

2.2. The
 Plan and this Sub-Plan are complementary to each other and shall be read and deemed as one. In the event of any contradiction, whether
 explicit or implied, between the provisions of this Sub-Plan and the Plan, the provisions of this Sub-Plan shall prevail with respect
 to Restricted Share Units granted to Israeli Participants.

2.3. Restricted
 Share Units may be granted under this Sub-Plan in one of the following tax tracks, at the Company's discretion and subject
 to applicable restrictions or limitations as provided in applicable law including without limitation any applicable restrictions
 and limitations in Section 102 regarding the eligibility of Israeli Participants to each of the following tax tracks, based on their
 capacity and relationship towards the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. "**102 Trustee Restricted Share Unit**" – an Restricted Share Unit granted through a Trustee in accordance with and pursuant
 to Section 102 in one of the following tax tracks: (i) the tax alternative set forth in Section 102(b)(2)/(3) of the Ordinance pursuant
 to which income resulting from the sale or transfer from the Trustee of RSU Shares derived from 102 Trustee Restricted Share Units
 is intended to be taxed as a capital gain, subject to meeting the required conditions thereunder ()"**Capital Gains Track** ")
 or (ii) the tax alternative set forth in Section 102(b)(1) of the Ordinance pursuant to which income resulting from the sale or transfer
 from the Trustee of RSU Shares derived from 102 Trustee Restricted Share Units is taxed as ordinary income ()"**Ordinary Income Track** "); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. "**102 Non-Trustee Restricted Share Unit**" – an Restricted Share Unit granted not through a Trustee in accordance with and
 pursuant to Section 102; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. "**3(i) Restricted Share Unit**" – an Restricted Share Unit granted pursuant to Section 3(i) of the Ordinance.

**3.** **ADMINISTRATION** 

Without derogating from the powers and authorities of the Board detailed in the Plan, the Board shall have the sole and full discretion and authority, without the need to submit its determinations or actions to the shareholders of the Company for their approval or authorization, unless such approval is required to comply with applicable mandatory law, to administer this Sub-Plan and to take all actions related hereto and to such administration, including without limitation the performance, from time to time and at any time, of any and all of the following: (a) the determination of the specific tax track (as described in Section 2.3 above) in which the Restricted Share Units are to be issued; (b) the election by the Company, with respect to grant of 102 Trustee Restricted Share Units, of either one of the following tax tracks – "Capital Gains Track" or "Ordinary Income Track", as provided in and in accordance with Section 102 (the "**Election**"); (c) the appointment of the Trustee; and (d) the adoption of forms of Grant Certificate to be applied with respect to Israeli Participants, incorporating and reflecting, inter alia, relevant provisions regarding the grant of Restricted Share Units in accordance with this Sub-Plan, and the amendment or modification from time to time of the terms of such Grant Certificate.

**4.** **SECTION 102 ELECTION** 

&nbsp;&nbsp;&nbsp;&nbsp;4.1. 102
 Trustee Restricted Share Units shall be granted pursuant to either (a) Section 102(b)(2)/(3) of the Ordinance as Capital Gains Track
 or (b) Section 102(b)(1) of the Ordinance as Ordinary Income Track. The Company's Election regarding the type of 102 Trustee
 Restricted Share Unit it chooses to make shall be filed with the Israeli Tax Authority (the "**ITA** "). Once the Company
 has filed such Election, it may change the type of 102 Trustee Restricted Share Units that it chooses to make only after the lapse
 of at least 12 months from the end of the calendar year in which the first grant was made in accordance with the previous Election,
 in accordance with Section 102. For the avoidance of doubt, such Election shall not prevent the Company from granting 102 Non-Trustee
 Restricted Share Unit to Eligible 102 Participants at any time.

4.2. Eligible
 102 Participants may receive only 102 Trustee Restricted Share Units or 102 Non-Trustee Restricted Share Units under this Sub-Plan.
 Israeli Participants who are not Eligible 102 Participants may be granted only 3(i) Restricted Share Units under this Sub-Plan.

4.3. The
 Grant Certificate shall indicate whether the grant is a 102 Trustee Restricted Share Unit, a 102 Non-Trustee Restricted Share Unit
 or a 3(i) Restricted Share Unit; and, if the grant is a 102 Trustee Restricted Share Units, the Election of tax track.

**5.** **102 TRUSTEE RESTRICTED SHARE UNITS** 

&nbsp;&nbsp;&nbsp;&nbsp;5.1. Notwithstanding
 anything to the contrary in the Plan, 102 Trustee Restricted Share Units granted hereunder shall be granted to, and the RSU Shares
 issued pursuant thereto and all rights attached thereto (including bonus shares), shall be issued to the Trustee, and all such Restricted
 Share Units and RSU Shares shall be registered in the name of the Trustee, who shall hold them in trust until such time as they are
 released by the transfer or sale thereof by the Trustee which will be at least such period of time as required by the provisions
 of Section 102 applicable to 102 Trustee Restricted Share Units (the "**Restricted Period** "). In case the requirements
 of Section 102 for 102 Trustee Restricted Share Units are not met, then the 102 Trustee Restricted Share Units may be regarded as
 102 Non-Trustee Restricted Share Units, all in accordance with the provisions of Section 102.

&nbsp;&nbsp;&nbsp;&nbsp;5.2. Notwithstanding
 anything to the contrary in the Plan, the date of grant of a 102 Trustee Restricted Share Unit shall be the date of the resolution
 of the Board approving the grant of such Restricted Share Units, which in the case of 102 Trustee Restricted Share Units shall not
 be before the lapse of 30 days (or such other period which may be determined by the Ordinance from time to time) from the date upon
 which the Plan is first submitted to the ITA.

5.3. Subject
 to the provisions of Section 102 and any rules or regulation or orders or procedures promulgated thereunder, the Israeli Participant
 shall provide the Company and the Trustee with a written undertaking and confirmation under which the Israeli Participant confirms
 that he/she is aware of the provisions of Section 102 and the elected tax track and agrees to the provisions of the trust agreement
 between the Company and the Trustee, and undertakes not to release, by sale or transfer, the 102 Trustee Restricted Share Units,
 and the RSU Shares issued pursuant thereof, and all rights attached thereto (including bonus shares) prior to the lapse of the Restricted
 Period. The Israeli Participant shall not be entitled to sell or release from trust the 102 Trustee Restricted Share Units, nor the
 RSU Shares issued pursuant thereof, nor any right attached thereto (including bonus shares), nor to request the transfer or sale
 of any of the same to any third party, before the lapse of the Restricted Period. Notwithstanding the above, if any such sale or
 transfer occurs during the Restricted Period, the sanctions under Section 102 of the Ordinance and under any rules or regulation
 or orders or procedures promulgated thereunder shall apply to and shall be borne by such Israeli Participant.

5.4. Without
 derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the Grant Certificate and
 applicable law, the Trustee shall not release, by sale or transfer, the RSU Shares issued pursuant to 102 Trustee Restricted Share
 Units, and all rights attached thereto to the Israeli Participant, or to any third party to whom the Israeli Participant wishes to
 sell the RSU Shares (unless the contemplated transfer is by will or laws of descent) unless and until the Trustee has either (a)
 withheld payment of all taxes required to be paid upon the sale or transfer thereof, if any, or (b) received confirmation either
 that such payment, if any, was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory
 to the Company and the Trustee.

5.5. Without
 derogating from the provisions of the Plan, it is hereby further clarified that with respect to RSU Shares issued pursuant to 102
 Trustee Restricted Share Units, as long as they are registered in the name of the Trustee, the Trustee shall be the registered owner
 of such RSU Shares. Notwithstanding, the Trustee shall not exercise the voting rights conferred by such RSU Shares in any way whatsoever,
 and shall issue a proxy to the Israeli Participant to vote such shares, subject to and in accordance with the provisions of Section

5.6. Cash
 dividends paid or distributed, if any, with respect to RSU Shares issued pursuant 102 Trustee Restricted Share Units shall be remitted
 directly to the Israeli Participant who is entitled to the 102 Trustee Restricted Share Units for which the dividends are being paid
 or distributed, subject to any applicable taxation on such distribution of dividend, and the withholding thereof, and when applicable,
 subject to the provisions of Section 102.

5.7. All
 bonus shares to be issued by the Company, if any, with regard to RSU Shares issued pursuant to 102 Trustee Restricted Share Units,
 while held by the Trustee, shall be registered in the name of the Trustee; and all provisions applying to such RSU Shares shall apply
 to bonus shares issued by virtue thereof, if any, mutatis mutandis. Said bonus shares shall be subject to the Restricted Period of
 the 102 Trustee Restricted Share Units by virtue of which they were issued.

5.8. The
 Company shall be under no duty to ensure, and no representation or commitment is made, that any of the Restricted Share Units qualifies
 or will qualify under any particular tax treatment (such as Section 102), nor shall the Company be required to take any action for
 the qualification of any of the Restricted Share Units under such tax treatment. The Company shall have no liability of any kind
 or nature in the event that, for any reason whatsoever, the Restricted Share Units do not qualify for any particular tax treatment.

5.9. Solely
 for the purpose of determining the tax liability pursuant to Section 102(b)(3) of the Ordinance, if on the date of grant the Company's
 RSU Shares are listed on any established stock exchange or a national market system or if the Company's RSU Shares will be
 registered for trading within ninety (90) days following the date of grant of 102 Trustee Restricted Share Units, the fair market
 value of the RSU Shares at the date of grant shall be determined in accordance with the average value of the Company's RSU
 Shares on the thirty (30) trading days preceding the date of grant or on the thirty (30) trading days following the date of registration
 for trading, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;5.10. Notwithstanding
 the provisions of the Plan, 102 Trustee Restricted Share Units may be settled in the form of issuance of Shares only and not for
 cash.

**6.** **102 NON-TRUSTEE RESTRICTED SHARE UNITS** 

&nbsp;&nbsp;&nbsp;&nbsp;6.1. 102
 Non-Trustee Restricted Share Units granted hereunder shall be granted to, and the RSU Shares issued pursuant to the settlement thereof,
 issued to, the Israeli Participant.

&nbsp;&nbsp;&nbsp;&nbsp;6.2. Without
 derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the Grant Certificate and
 applicable law, the RSU Shares issued pursuant to the settlement of the 102 Non-Trustee Restricted Share Units, and all rights attached
 thereto shall not be transferred unless and until the Company has either (a) withheld payment of all taxes required to be paid upon
 the sale or transfer thereof, if any, or (b) received confirmation either that such payment, if any, was remitted to the tax authorities
 or of another arrangement regarding such payment, which is satisfactory to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;6.3. An
 Israeli Participant to whom 102 Non-Trustee Restricted Share Units are granted must provide, upon termination of his/her employment,
 a surety or guarantee to the satisfaction of the Company, to secure payment of all taxes which may become due upon the future transfer
 of his/her RSU Shares to be issued pursuant to 102 Non-Trustee Restricted Share Units, all in accordance with the provisions of Section

**7.** **3(I) RESTRICTED SHARE UNITS** 

&nbsp;&nbsp;&nbsp;&nbsp;7.1. 3(i)
 Restricted Share Units granted hereunder shall be granted to, and the RSU Shares issued pursuant thereto issued to, the Israeli Participant.

&nbsp;&nbsp;&nbsp;&nbsp;7.2. Without
 derogating and subject to the above, and to all other applicable restrictions in the Plan, this Sub-Plan, the Grant Certificate and
 applicable law, the 3(i) Restricted Share Units cannot be settled unless and until the Company has either (a) withheld payment of
 all taxes required to be paid upon the settlement thereof, if any, or (b) received confirmation either that such payment, if any,
 was remitted to the tax authorities or of another arrangement regarding such payment, which is satisfactory to the Company.

**8.** **TAX CONSEQUENCES** 

&nbsp;&nbsp;&nbsp;&nbsp;8.1. Without
 derogating from and in addition to any provisions of the Plan, any and all tax and/or other mandatory payment consequences arising
 from the grant, settlement or vesting of Restricted Share Units, the payment for or the transfer or sale of RSU Shares, or from any
 other event or act in connection therewith (including without limitation, in the event that the Restricted Share Units do not qualify
 under the tax classification/tax track in which they were intended) whether of the Company, an Affiliate, the Trustee or the Israeli
 Participant, including without limitation any non-compliance of the Israeli Participant with the provisions hereof, shall be borne
 solely by the Israeli Participant. The Company, any applicable Affiliate, and the Trustee, may each withhold (including at source),
 deduct and/or set-off, from any payment made to the Israeli Participant, the amount of the taxes and/or other mandatory payments
 of which is required with respect to the Restricted Share Units and/or RSU Shares. Furthermore, each Israeli Participant shall indemnify
 the Company, the applicable Affiliate and the Trustee, or any one thereof, and hold them harmless from any and all liability for
 any such tax and/or other mandatory payments or interest or penalty thereupon, including without limitation liabilities relating
 to the necessity to withhold, or to have withheld, any such tax and/or other mandatory payments from any payment made to the Israeli
 Participant.

&nbsp;&nbsp;&nbsp;&nbsp;8.2. Without
 derogating from the aforesaid, each Israeli Participant shall provide the Company and/or any applicable Affiliate with any executed
 documents, certificates and/or forms that may be required from time to time by the Company or such Affiliate in order to determine
 and/or establish the tax liability of such Israeli Participant.

&nbsp;&nbsp;&nbsp;&nbsp;8.3. Without
 derogating from the foregoing, it is hereby clarified that the Israeli Participant shall bear and be liable for all tax and other
 consequences in the event that his/her 102 Trustee Restricted Share Units and/or the RSU Shares issued pursuant to the settlement
 thereof are not held for the entire Restricted Period, all as provided in Section 102

8.4. The
 Company and/or, when applicable, the Trustee shall not be required to release any share certificate to an Israeli Participant until
 all required payments have been fully made.

**9.** **SUBORDINATION TO THE ORDINANCE** 

&nbsp;&nbsp;&nbsp;&nbsp;9.1. It
 is clarified that the grant of the 102 Trustee Restricted Share Units hereunder is subject to the filing with the ITA of the Plan
 and this Sub-Plan, in accordance with Section 102.

9.2. Any
 provisions of Section 102 or Section 3(i) of the Ordinance and/or any of the rules or regulations promulgated thereunder, which are
 not expressly specified in the Plan or in the applicable Grant Certificate, including without limitation any such provision which
 is necessary in order to receive and/or to keep any tax benefit, including but not limited any tax ruling received in connection
 with the Plan and this Sub-Plan, and any approval or guidance issued by the ITA shall be deemed incorporated into this Sub-Plan and
 binding upon the Company, any applicable Affiliate and the Israeli Participant and shall be considered binding upon the Company and
 the Participants.

9.3. The
 Restricted Share Units, the Plan, this Sub-Plan and any applicable Grant Certificate are subject to the applicable provisions of
 the Ordinance, which shall be deemed an integral part of each, and which shall prevail over any term that is inconsistent therewith.

**10.** **GOVERNING LAW & JURISDICTION** 

This Sub-Plan shall be governed by and construed and enforced in accordance with the laws of the State of Israel, without giving effect to the principles of conflict of laws. The competent courts of the central district and/or the competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters pertaining to this Sub-Plan.

## Exhibit 4.9

**Exhibit 4.9** 

**A2Z SMART TECHNOLOGIES CORP.**

**OFFERING OF UNITS**

**COMPRISED OF COMMON SHARES AND WARRANTS**

**FORM OF** **SUBSCRIPTION AGREEMENT**

**(<u>Canadian, U.S. and International Purchasers</u>)**

**February 2023**

![](ex4-9_001.jpg)

![](ex4-9_002.jpg)

**<u>Present Ownership of Common Shares</u>**

The Purchaser either ***[initial appropriate box]***:

☐ owns directly or indirectly, or exercises control or direction over, no Common Shares or securities convertible into Common Shares; or

☐ owns directly or indirectly, or exercises control or direction over, ____________ Common Shares and ____________ convertible securities entitling the holder thereof to acquire an additional ____________ Common Shares.

**<u>Insider Status</u>**

The Purchaser either ***[initial appropriate box]***:

---

| | |
|:---|:---|
| ☐ | is an "Insider" of the Corporation as defined in the *Securities Act* (Ontario), namely "Insider" means: |
| (a) | a director or officer of the administrator of Corporation; |
| (b) | a director or officer of a person or company that is itself an insider or subsidiary of the Corporation; |
| (c) | a person or company that has: |
|  | (i) beneficial ownership of, or control or direction over, directly or indirectly, securities of the Corporation carrying more than 10 per cent of the voting rights attached to all the Corporation's outstanding voting securities, excluding, for the purpose of the calculation of the percentage held, any securities held by the person or company as underwriter in the course of a distribution; or |
|  | (ii) a combination of beneficial ownership of, and control or direction over, directly or indirectly, securities of the Corporation carrying more than 10 per cent of the voting rights attached to all the Corporation's outstanding voting securities, excluding, for the purpose of the calculation of the percentage held, any securities held by the person or company as underwriter in the course of a distribution; or |
| (d) | a person or company designated as an insider of the Corporation in an order. |
| ☐ | is not an "Insider" of the Corporation. |

---

**<u>Member of "Pro Group"</u>**

The Purchaser either ***[initial appropriate box]***:

☐ is a Member of the "Pro Group" as defined in the TSX Venture Exchange Corporate Finance Manual, namely "Pro Group" means:

1. Subject
 to subparagraphs (2), (3) and (4), "Pro Group" shall include, either individually or as a group:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 member (i.e. a member of the TSX Venture Exchange under the TSX Venture Exchange requirements);

(b) employees
 of the member;

(c) partners,
 officers and directors of the member;

(d) affiliates
 of the member; and

(e) associates
 of any parties referred to in subparagraphs (a) through (d).

2. The
 TSX Venture Exchange may, in its discretion, include a person or party in the Pro Group for the purposes of a particular calculation
 where the TSX Venture Exchange determines that the person is not acting at arm's length to the member.

3. The
 TSX Venture Exchange may, in its discretion, exclude a person from the Pro Group for the purposes of a particular calculation where
 the TSX Venture Exchange determines that the person is acting at arm's length to the member.

4. The
 TSX Venture Exchange may deem a person who would otherwise be included in the Pro Group pursuant to subparagraph (1) to be excluded
 from the Pro Group where the TSX Venture Exchange determines that:

(a) the
 person is an affiliate or associate of the member acting at arm's length of the member;

(b) the
 associate or affiliate has a separate corporate and reporting structure;

(c) there
 are sufficient controls on information flowing between the member and the associate or affiliate; and

(d) the
 member maintains a list of such excluded persons; or

☐ is not a member of the Pro Group.

**THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK**

**A2Z Smart Technologies Corp.,** accepts the subscription set forth above this _____ day of ______________, 2023.

  <br> Authorized Signatory

**TERMS AND CONDITIONS**

1. <u>Subscription</u>

The Purchaser hereby irrevocably subscribes for and agrees to purchase from the Corporation the number of Units set out on page 2 hereof at the Subscription Price, all on the terms and subject to the conditions set out in this Subscription Agreement (the "**Offering**"), each Unit comprised of one Common Share and one half of one Warrant. Each whole Warrant will entitle the holder thereof to purchase one Warrant Share for a period of 24 months from the Closing Date at an exercise price of CAD$(US$).

The Warrants will be governed pursuant to the terms of a warrant certificate (the "**Warrant Certificate**") to be entered into between the Corporation and each Purchaser in connection with the issuance of the Warrants.

The Purchaser acknowledges that this subscription forms part of a larger offering by the Corporation of up to 8,000,000 Units.

In this Subscription Agreement:

(a) "**1933 Act**" means the United States Securities Act of 1933, as amended;

(b) "**Business Day**" as used in this Subscription Agreement shall mean a day on which Canadian chartered banks are open for the transaction
 of regular business in the City of Toronto, Ontario, Canada;

(c) "**Qualified Institutional Buyer**" means a "qualified institutional buyer" as defined under Rule 144A of the 1933 Act that
 is also a U.S. Accredited Investor;

(d) "**Regulation D**" means Regulation S under the 1933 Act;

(e) "**Regulation S**" means Regulation S under the 1933 Act;

(f) "**United States**" or "**U.S.**" means the United States of America, its territories and possessions, any state of
 the United States and the District of Columbia;

(g) "**U.S. Accredited Investor**" means an "accredited investor" within the meaning of Rule 501(a) of Regulation D;

(h) "**U.S. Person**" has the meaning ascribed to it in Rule 902(k) of Regulation S, which definition includes a natural person resident
 in the United States, a partnership or corporation organized or incorporated under the laws of the United States, an estate of which
 any executor or administrator is a U.S. Person, a trust of which any trustee is a U.S. Person, a non-discretionary account or similar
 account (other than an estate or trust) held by a dealer or other fiduciary for the benefit of a U.S. Person, a 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 a partnership or corporation if (i) organized or incorporated under the laws of any foreign jurisdiction,
 and (ii) formed by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless
 it is organized or incorporated, and owned, by "accredited investors" under Rule 501(a) of Regulation D who are not natural
 persons, estates or trusts; and

(i) "**U.S. Purchaser**" means a Purchaser of Units who was, at the time of purchase (a) a person in the United States, (b) a U.S. Person,
 (c) any person purchasing that purchased Units on behalf of, or for the account or benefit of, a U.S. Person or any person in the
 United States, (d) any person who receives or received an offer to acquire such Units while in the United States, or (e) any person
 who was in the United States at the time such person's buy order was made or this Subscription Agreement pursuant to which
 such Units were acquired was executed or delivered.

2. <u>Closing</u>

2.1 The
 Offering may be completed in one or more closings (each, a "**Closing**") at the offices of the Corporation's
 legal counsel, at such times and dates (each, a "**Closing Date**") as may be determined by the Corporation in its
 sole discretion.

2.2 The
 Purchaser acknowledges that the Closing, and the Corporation's obligation to sell the Units to the Purchaser is subject to,
 among other things, the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Purchaser completing, executing and delivering to the Corporation as set forth on page 2 of this Subscription Agreement, together
 with all other documents required by applicable securities laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 duly completed and executed Schedule "A" – *Accredited Investor Certificate* (unless the Purchaser is a U.S.
 Purchaser); or

(ii) a
 duly completed and executed Schedule "B" – *U.S. Accredited Investor Certificate*, if the Purchaser is a U.S.
 Purchaser that is a U.S. Accredited Investor;

(iii) a
 duly completed and executed Schedule "C" – *Qualified Institutional Buyer Letter*, if the Purchaser is U.S.
 Purchaser that is a Qualified Institutional Buyer;

(iv) if
 applicable, Schedule "D" – *TSX Venture Exchange Form 4C – Corporate Placee Registration Form; and* 

(v) if
 applicable, a duly completed and executed escrow agreement – Schedule "E" ;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Purchaser delivering the Subscription Amount , at the Purchaser's election, either (i) directly to the Corporation or (ii)
 to the Corporation's escrow agent by wire transfer along with a duly executed escrow agreement;

(c) the
 Corporation accepting, in whole or in part, this Subscription Agreement;

(d) receipt
 of the TSX Venture Exchange (the "**Exchange**") conditional approval for the listing of the Common Shares and Warrant
 Shares;

(e) the
 filing of a listing of additional shares with the Nasdaq Stock Market LLC and no objections from the Nasdaq Stock Market LLC re same;

(f) the
 issuance of the Securities being exempt from the requirement to file a prospectus or registration statement and the requirement to
 prepare and deliver an offering memorandum or similar document under any applicable statute relating to the sale of the Securities
 or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing
 a prospectus or registration statement or delivering an offering memorandum or similar document; and

(g) the
 representations, warranties, covenants and certifications of the Purchaser addressed to the Corporation in this Subscription Agreement,
 including in any appendices hereto or other document delivered to the Corporation in connection with the Purchaser's subscription,
 being accurate, true and correct at the Closing.

2.3 If,
 prior to the Closing Date, the terms and conditions contained in this Subscription Agreement (other than delivery by the Corporation
 to the Purchaser of the Common Shares and Warrants in electronic or certificated form) have not been complied with to the satisfaction
 of the Corporation, or waived by the Corporation (as applicable), the Corporation and the Purchaser will have no further obligations
 under this Subscription Agreement. If the Closing does not occur, the Corporation shall return this Subscription Agreement and any
 funds, certified cheques and bank drafts delivered by the Purchaser to the Corporation representing the Subscription Amount for the
 Units, without interest or deduction to the Purchaser.

2.4 The
 Purchaser acknowledges and agrees that the Corporation reserves the right, in its absolute discretion, to reject this subscription,
 in whole or in part, at any time prior to the time of Closing. If this subscription is rejected in whole, any cheques or other forms
 of payment delivered to the Corporation representing the Subscription Amount will be promptly returned to the Purchaser without interest
 or deduction. If this subscription is accepted only in part, a cheque representing any refund of the Subscription Amount for that
 portion of the subscription for the Units which is not accepted will be promptly delivered to the Purchaser without interest or deduction.

2.5 Notwithstanding
 any terms set out herein, each Common Share and Warrant underlying a Unit originally issued to a U.S. Purchaser that is a U.S. Accredited
 Investor must be issued in individually certificated form only and bear the applicable legend set forth in Schedule "B".

3. <u>Purchaser's Representations, Warranties and Covenants</u>

The Purchaser (on its own behalf and, if applicable, on behalf of each beneficial purchaser for whom the Purchaser is contracting hereunder) represents and warrants to, and covenants with, the Corporation (and acknowledges that the Corporation is relying on them), which representations, warranties and covenants shall survive the Closing, that as at the execution date of this Subscription Agreement and the Closing Date:

3.1 The
 Purchaser confirms that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment in the
 Securities;

(b) it
 is capable of assessing the merits and risks (including the potential loss of its entire investment) of the proposed investment in
 the Securities;

(c) it
 is aware of the characteristics of the Securities and understands the risks relating to an investment therein;

(d) it
 is able to bear the economic risk of loss of its investment in the Securities; and

(e) the
 Securities are being purchased for investment purposes and not for a view to distribution within the meaning of the securities laws
 of the United States.

3.2 The
 Purchaser acknowledges that it:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has
 conducted its own investigation with respect to the Corporation, its business and the Securities;

(b) has
 received or otherwise had access to all information regarding the Corporation that it believes is necessary or appropriate in connection
 with the purchase of the Units, including financial and other information which has been publicly filed by the Corporation with the
 relevant securities commissions or similar regulatory authorities in Canada on the System for Electronic Document Analysis and Retrieval
 (SEDAR), an electronic database that is accessible at the following website address: <u>www.sedar.com</u>;

(c) has
 made its own assessment and has satisfied itself concerning the relevant tax, legal, currency and other considerations relevant to
 its investment in the Units; and

(d) has
 such knowledge and experience in financial and business matters in order to evaluate the merits and risks of its prospective investment
 in the Units.

3.3 The
 Purchaser is resident in the jurisdiction set forth in the "Address of Residence" set out on page 2 of this Subscription
 Agreement, and unless the Purchaser has completed and executed with the U.S. Accredited Investor Certificate attached as Schedule
 B or the Qualified Institutional Buyer Letter attached as Schedule C:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 not a U.S. Person and is not purchasing the Units for the account of or benefit of a U.S. Person or a person within the United States;

(ii) was
 not offered the Units in the United States;

(iii) did
 not execute or deliver this Subscription Agreement, in the United States;

(iv) did
 not cause any buy order for the Purchaser's Units to originate in the United States;

(v) has
 no intention to distribute either directly or indirectly any of the Securities in the United States, and the Purchaser will not offer,
 sell or otherwise transfer, directly or indirectly, any of the Securities in the United States or to, or for the account or benefit
 of, a U.S. Person or person in the United States except pursuant to registration under the 1933 Act and the securities laws of all
 applicable states, or pursuant to available exemptions therefrom; and

(vi) did
 not receive the offer to purchase the Units as a result of, nor will it engage in, any directed selling efforts (as defined in Regulation
 S); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Purchaser is a U.S. Purchaser and is either

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 U.S. Accredited Investor that has duly completed, and executed and delivered to the Corporation, Schedule "B" to this
 Subscription Agreement (U.S. Accredited Investor Certificate) and represents, warrants and covenants to the Corporation the accuracy
 of all matters set out therein, or

(ii) a
 Qualified Institutional Buyer, and has duly completed, and executed and delivered to the Corporation, Schedule "C" to
 this Subscription Agreement (Qualified Institutional Buyer Letter) and represents, warrants and covenants to the Corporation the
 accuracy of all matters set out therein.

3.4 The
 Purchaser believes that it satisfies any and all applicable standards imposed by the jurisdiction of its residence or otherwise for
 investors with respect to an investment in the Securities.

3.5 If
 the Purchaser is not an individual, it is empowered, authorized and qualified to purchase the Units and the individual signing this
 Subscription Agreement on behalf of the Purchaser has been duly authorized by the Purchaser to do so.

3.6 The
 Purchaser is aware that no prospectus has been prepared or filed by the Corporation with any securities commission or similar authority
 in connection with the Offering, and that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Purchaser may be restricted from using most of the civil remedies available under applicable securities laws;

(b) the
 Purchaser may not receive information that would otherwise be required to be provided under applicable securities laws and the Corporation
 is relieved from certain obligations that would otherwise be required to be given if a prospectus were provided under applicable
 securities laws in connection with the Offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 sale of the Units and the issuance of the Securities to the Purchaser is subject to such
 sale and issuance being exempt from the requirements of applicable securities laws as to
 the filing of a prospectus or registration statement.

3.7 If
 the Purchaser is resident in or is otherwise subject to the securities laws of a jurisdiction
 of Canada, the Purchaser is purchasing the Units as principal for its own account and not
 for the benefit of any other person or company, for investment only and not with a view to
 the resale or distribution of all or any of the Securities, or the person signing this Subscription
 Agreement is purchasing the Units as agent for the principal disclosed herein with due and
 proper authority to execute all documentation in connection with the purchase on behalf of
 the Purchaser, and each Purchaser for whom the person signing this Subscription Agreement
 is acting as agent is purchasing as principal for its own account and not for the benefit
 of any other person or company, for investment only and not with a view to the resale or
 distribution of all or any of the Units, and the Purchaser is an "accredited investor"
 as defined in National Instrument 45-106 *Prospectus Exemptions* ()"**NI 45-106** ")
 and is not a person created or used solely to purchase or hold securities as an "accredited
 investor" as defined in paragraph (m) of the aforesaid definition of "accredited
 investor", and the Purchaser has duly completed, executed and delivered to the Corporation,
 a Schedule "A" – *Accredited Investor Certificate*.

3.8 If
 the Purchaser is resident in or otherwise subject to the securities laws of a jurisdiction
 other than Canada or the United States then the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) currently
 has knowledge and experience or has consulted the Purchaser's own counsel, accountant
 or investment advisor, with respect to the investment contemplated hereby and applicable
 securities laws in the international jurisdiction in which the Purchaser resides which would
 apply to this subscription;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is
 purchasing, to its knowledge, the Units in compliance with or pursuant to exemptions from
 any prospectus, registration or similar requirements under the applicable securities laws
 of the international jurisdiction in which the Purchaser resides (and the Purchaser shall
 deliver to the Corporation such further particulars of such applicable securities laws or
 exemptions and the Purchaser's qualifications thereunder as the Corporation may request),
 and the purchase and sale of the Units does not, to its knowledge, trigger any obligation
 to prepare and file a prospectus, registration statement or similar document, or any other
 report with respect to such purchase and/or any registration or other obligation on the part
 of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 its knowledge, no applicable securities laws of the international jurisdiction in which the
 Purchaser resides require the Corporation to make any filings or seek any approvals of any
 kind whatsoever from any securities commission or regulatory authority of any kind whatsoever
 in the jurisdiction of residence of the Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Purchaser will not sell or otherwise dispose of any of the Securities except in accordance
 with all applicable securities laws including, without limitation, the rules, regulations
 and policies of the Exchange. If the Purchaser sells or otherwise disposes of any of the
 Securities other than through the facilities of the Exchange, the Purchaser will obtain from
 the person acquiring them a covenant in the same form as provided for in this Subscription
 Agreement, and the Corporation shall not have any obligation to register any purported sale
 or disposition of Securities which may be in violation of such laws and any such sale, transfer
 or other disposition shall be null and void and of no force or effect.

3.9 The
 Purchaser acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no
 securities commission or similar regulatory authority has reviewed or passed on the merits
 of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there
 is no government or other insurance covering the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there
 are risks associated with the purchase of the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Securities have not been and will not be registered under the 1933 Act or any state securities
 or "blue sky" laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) there
 are restrictions on the Purchaser's ability to resell the Securities and it is the
 responsibility of the Purchaser to find out what those restrictions are and to comply with
 them before selling any of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Corporation has advised the Purchaser that the Corporation is relying on an exemption from
 the requirements to provide the Purchaser with a prospectus and to sell the Units through
 a person or company registered to sell securities under applicable securities laws and, as
 a consequence of acquiring the Units pursuant to this exemption, certain protections, rights
 and remedies provided by the applicable securities laws, including statutory rights of rescission
 or damages, will not be available to the Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) it
 is aware that no analysis has been undertaken to determine if the Corporation is a "passive
 foreign investment company" within the meaning of Section 1297 of the U.S. Internal
 Revenue Code of 1986. The Purchaser understands that if the Corporation were determined to
 be a passive foreign investment company, there may be adverse tax consequences to a U.S.
 holder of the Units.

3.10 The
 Purchaser is resident in the jurisdiction set forth in the "Address of Residence"
 set out on page 2 of this Subscription Agreement and the Purchaser will comply with all applicable
 securities laws and with the policies of the Exchange concerning the purchase of, the holding
 of and the resale restrictions on the Securities.

3.11 The
 Purchaser is aware that the offer made by this Subscription Agreement is irrevocable and
 requires acceptance by the Corporation and the acceptance for filing thereof by the Exchange
 and will not become an agreement between the Purchaser and the Corporation until accepted
 by the Corporation signing in the space above.

3.12 If
 an individual, the Purchaser has attained the age of majority and is legally competent to
 execute and deliver this Subscription Agreement and to take all actions required pursuant
 hereto and if a corporation, partnership or other entity, the Purchaser has been duly incorporated,
 created or organized and validly exists under the laws of its jurisdiction of incorporation,
 creation or organization and all necessary approvals by its directors and shareholders have
 been obtained for the execution and delivery of this subscription.

3.13 Upon
 acceptance of this subscription by the Corporation, this Subscription Agreement, including
 all schedules and appendices, will constitute a legal, valid and binding contract of purchase
 enforceable against the Purchaser in accordance with its terms and will not violate or conflict
 with the terms of any restriction, agreement or undertaking respecting purchases of securities
 by the Purchaser.

3.14 The
 Purchaser's purchase of the Units has not been made through or as a result of, the
 distribution of the Units is not being accompanied by and the Purchaser is not aware of,
 any advertisement of the securities in printed media of general and regular paid circulation,
 radio, television or electronically.

3.15 No
 prospectus or offering memorandum within the meaning of applicable securities laws or any
 other document purporting to describe the business and affairs of the Corporation has been
 delivered to the Purchaser in connection with the Offering.

3.16 No
 person has made to the Purchaser any written or oral representation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that
 any person will resell or repurchase any of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that
 any person will refund all or any part of purchase price of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as
 to the future price or value of any of the Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that
 any of the Securities will be listed and posted for trading on a stock exchange or that application
 has been made to list and post any of the Securities for trading on a stock exchange, other
 than the Exchange.

3.17 None
 of the Units are being purchased by the Purchaser with knowledge of any material fact about
 the Corporation that has not been generally disclosed.

3.18 In
 the case of a person signing this Subscription Agreement as agent for a disclosed principal,
 each beneficial purchaser for whom the agent is purchasing, or is deemed under NI 45-106
 to be purchasing, as principal, is for its own account and not for the benefit of any other
 person, and such person is duly authorized to enter into this Subscription Agreement and
 to execute all documentation in connection with the purchase on behalf of each such beneficial
 purchaser.

3.19 The
 funds representing the aggregate Subscription Amount in respect of the Units which will be
 advanced by or on behalf of the Purchaser to the Corporation hereunder do 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 Section 3.19, the "**PCMLTFA** ")
 and the Purchaser acknowledges and agrees that the Corporation may be required by law to
 provide the securities regulators with a list setting forth the identities of the beneficial
 purchasers of the Units, or disclosure pursuant to the PCMLTFA. Notwithstanding that the
 Purchaser may be purchasing Units as agent on behalf of an undisclosed principal, the Purchaser
 agrees to provide, on request, particulars as to the identity of such undisclosed principal
 as may be required by the Corporation in order to comply with the foregoing. To the best
 of the Purchaser's knowledge: (a) none of the subscription funds provided by or on
 behalf of the Purchaser, (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,
 or any other jurisdiction, or (ii) are being tendered on behalf of a person or entity who
 has not been identified to the Purchaser; and (b) the Purchaser will promptly notify the
 Corporation if the Purchaser discovers that any of such representations cease to be true,
 and shall provide the Corporation and the Agents with appropriate information in connection
 therewith.

3.20 The
 Purchaser is not, with respect to the Corporation or any of its affiliates, a "control
 person", as defined under applicable securities laws, and the acquisition of the Units
 hereunder by the Purchaser will not result in the Purchaser becoming a "control person".

3.21 The
 Purchaser has been advised to seek tax, investment and independent legal advice and any other
 professional advice the Purchaser considers appropriate in connection with the Purchaser's
 purchase of the Units and the Purchaser confirms that the Purchaser has not relied on the
 Corporation, or its legal counsel in any manner in connection with the Purchaser's
 purchase of the Units.

3.22 The
 Purchaser agrees that by accepting the Units, the Purchaser shall be representing and warranting
 that the foregoing representations and warranties are true as at the Closing with the same
 force and effect as if they had been made by the Purchaser at the Closing and that they shall
 survive the purchase by the Purchaser of the Units.

3.23 The
 Purchaser hereby agrees to indemnify and save harmless the Corporation, or its directors,
 officers, employees, advisors, affiliates, shareholders and agents, and their respective
 counsel, against all losses, claims, costs, expenses and damages or liabilities which any
 of them may suffer or incur and which are caused by or arise from any inaccuracy in, breach
 or misrepresentation by the Purchaser of, any representation, warranty or covenant.

3.24 The
 Purchaser undertakes to immediately notify the Corporation of any change in any statement
 or other information relating to the Purchaser set forth herein or in U.S. Accredited Investor
 Certificate or Qualified Institutional Buyer Letter, as the case may be, including any schedules
 thereto, that takes place prior to the Closing Date.

4. <u>Purchaser's Acknowledgments</u>

4.1 The
 Purchaser acknowledges and agrees (on its own behalf and, if applicable, on behalf of each
 beneficial purchaser for whom the Purchaser is contracting hereunder) with the Corporation
 (which acknowledgements and agreements shall survive the Closing) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 subscription forms part of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Securities are subject to resale restrictions under applicable securities laws and the Purchaser
 covenants that it will not resell the Securities except in compliance with such laws and
 the Purchaser acknowledges that it is solely responsible (and the Corporation is not in any
 way responsible) for such compliance. The Purchaser is advised to consult the Purchaser's
 own legal advisors in this regard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Units are being offered for sale only on a "private placement" basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In
 purchasing the Units, the Purchaser has relied solely upon publicly available information
 relating to the Corporation and not upon any oral or written representation as to any fact
 or otherwise made by or on behalf of the Corporation or any other person associated therewith,
 the decision to purchase the Units was made on the basis of publicly available information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Purchaser's ability to transfer the Securities is limited by, among other things, applicable
 securities laws and the policies of the Exchange. In particular, the Purchaser acknowledges
 having been informed that the Securities are subject to resale restrictions under National
 Instrument 45-102 *Resale of Securities* ()"**NI 45-102**") and may not
 be sold or otherwise disposed of in Canada for a period of four months from the date of distribution
 of the Securities, unless a statutory exemption is available or a discretionary order is
 obtained from the applicable securities commission allowing the earlier resale thereof, and
 may be subject to additional resale restrictions if such sale or other disposition would
 be a "control distribution", as that term is defined in NI 45-102. If the Purchaser
 or a trade in the Securities is subject to the securities laws of a jurisdiction other than
 Canada, additional resale restrictions may apply under other applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 representations, warranties, covenants and acknowledgements of the Purchaser contained in
 this Subscription Agreement, and in any schedules or other documents or materials executed
 and delivered by the Purchaser hereunder, are made by the Purchaser with the intent that
 they may be relied upon by the Corporation, and its professional advisors in determining
 the Purchaser's eligibility to purchase the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 sale of the Units and the delivery of the Securities to the Purchaser is conditional upon
 such sale being exempt from the requirement to file a prospectus or registration statement
 or to prepare and deliver an offering memorandum or similar document under any applicable
 statute relating to the sale of the Units or upon the issuance of such orders, consents or
 approvals as may be required to permit such sale without the requirement of filing a prospectus
 or registration statement or preparing and delivering an offering memorandum or similar document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The
 Purchaser further acknowledges and agrees that the Corporation may be required to provide
 applicable securities regulatory authorities with a list setting forth the identities of
 the beneficial purchasers of the Units and that the Purchaser will provide, on request, particulars
 as to the identity of such beneficial purchasers as may be required by the Corporation in
 order to comply with the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Purchaser and, if the person signing this Subscription Agreement is acting as agent for a
 disclosed principal, such agent acknowledges and consents to the fact that the Corporation
 and the Agents are collecting the Purchaser's, and, if applicable, such agent's
 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), for the purpose of completing this Subscription
 Agreement. The Purchaser and, if the person signing this Subscription Agreement is acting
 as agent for a disclosed principal, such agent acknowledge and consent to the Corporation
 retaining such personal information for as long as permitted or required by law or business
 practices. The Purchaser and, if the person signing this Subscription Agreement is acting
 as agent for a disclosed principal, such agent further acknowledge and consent to the fact
 that the Corporation may be required by applicable securities laws, the rules and policies
 of any stock exchange or the rules of the Investment Industry Regulatory Organization of
 Canada to provide regulatory authorities or stock exchanges with any personal information
 provided by the Purchaser or, if applicable, such agent in this Subscription Agreement. The
 Purchaser and, if the person signing this Subscription Agreement is acting as agent for a
 disclosed principal, such agent represent and warrant that it has the authority to provide
 the consents and acknowledgements set out in this Subsection 4.1(i). In addition to the foregoing,
 the Purchaser and, if the person signing this Subscription Agreement is acting as agent for
 a disclosed principal, such agent acknowledge and agree that the Corporation may use and
 disclose the Purchaser's and, if applicable, such agent's personal information,
 and consents thereto, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for
 internal use with respect to managing the relationships between and contractual obligations
 of the Corporation and the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for
 use and disclosure for income tax related purposes, including without limitation, where required
 by law, disclosure to the Canada Revenue Agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) disclosure
 to stock exchanges and securities regulatory authorities and other regulatory bodies having
 jurisdiction with respect to approval or acceptance for filing of the Offering, reports of
 trades and similar stock exchange or regulatory filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) disclosure
 to professional advisers of the Corporation in connection with the performance of their professional
 services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) disclosure
 to any person where such disclosure is necessary for legitimate business reasons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) disclosure
 to a court determining the rights of the parties under this Subscription Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) for
 use and disclosure as otherwise required or permitted by law.

Furthermore, the Purchaser is hereby notified that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the
 Corporation may deliver to the Ontario Securities Commission certain personal information
 pertaining to the Purchaser, including such Purchaser's full name, residential address
 and telephone number, the number of Units purchased by the Purchaser and the total purchase
 price paid for such Units, the prospectus exemption relied on by the Corporation and the
 date of distribution of the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) such
 information is being collected indirectly by the Ontario Securities Commission, and other
 applicable securities regulatory authorities, under the authority granted in applicable securities
 legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) such
 information is being collected for the purposes of the administration and enforcement of
 the securities legislation of Ontario, and other applicable jurisdictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the
 Purchaser may contact the following public official in Ontario with respect to questions
 about the Ontario Securities Commission's indirect collection of such information at
 the following address and telephone number:

Inquiries Officer

Ontario Securities Commission

20 Queen Street West, 22<sup>nd</sup> Floor

Toronto, Ontario, M5H 3S8

Telephone: (416) 593-8314

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The
 Purchaser has been advised to consult the Purchaser's own legal advisors with respect
 to the merits and risks of an investment in the Units and with respect to applicable resale
 restrictions and the Purchaser is solely responsible, and the Corporation is not in any way
 responsible, for compliance with applicable resale restrictions, and the Purchaser further
 acknowledges that the Corporation's legal counsel is acting solely as counsel to the
 Corporation and not as counsel to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The
 Purchaser is aware of the characteristics of the Units and the risks relating to an investment
 therein and agrees that the Purchaser must bear the economic risk of his, her or its investment
 in the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The
 Purchaser is aware that: (i) the Corporation may complete additional financings in the future
 in order to develop the Corporation's business and to fund its ongoing development;
 (ii) there is no assurance that such financings will be available and, if available, on reasonable
 terms; (iii) any such future financings may have a dilutive effect on the Corporation's
 securityholders, including the Purchaser; and (iv) if such future financings are not available,
 the Corporation may be unable to fund its on-going development and the lack of capital resources
 may result in the failure of the Corporation's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 specific attributes of the Warrants shall be set forth in the Warrant Certificate. The description
 of the Warrants contained in this Subscription Agreement is a summary only and is qualified
 in its entirety by the Warrant Certificate. In the event of any inconsistency between the
 provisions hereof and the provisions of the Warrant Certificate, the provisions of the Warrant
 Certificate shall prevail and take precedence.

5. <u>Finders Fees</u>

The Purchaser acknowledges and agrees that the Corporation may pay certain finders fees in conjunction with subscriptions included in the Offering.

6. <u>Resale Restrictions and Legending of Securities</u>

6.1 In
 addition to the acknowledgements given in Article 4 hereof, the Purchaser acknowledges that
 the Securities will be subject to statutory and Exchange imposed resale restrictions.

6.2 The
 Purchaser acknowledges that a legend restriction notation will be entered on the ownership
 statements evidencing the Securities (or endorsed on the certificates representing the Securities,
 if any), to the effect that the securities represented thereby are subject to a hold period
 and may not be traded until the expiry thereof except as permitted by applicable securities
 legislation and, if applicable, the policies of the Exchange. In particular, if required,
 the Purchaser acknowledges that such ownership statements (or the certificates representing
 the Securities, if any) shall bear a legend substantially in the following form and with
 the information completed:

**"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY [and for the Warrants:, OR ANY SECURITIES ISSUED ON ITS EXERCISE] MUST NOT TRADE THE SECURITY IN CANADA OR WITH A RESIDENT OF CANADA BEFORE ."**

6.3 The
 Purchaser acknowledges that the Securities have not been registered under the 1933 Act or
 the securities laws of any State of the United States and that the Corporation does not intend
 to register any of the Securities under the 1933 Act, or the securities laws of any State
 of the United States and has no obligation to do so. The Securities may not be offered or
 sold in the United States or to, or for the account or benefit of, a U.S. Person unless registered
 in accordance with United States federal securities laws and all applicable state securities
 laws or exemptions from such requirements are available. The Purchaser further acknowledges
 that the Corporation will not register any transfer of any of the Securities not made in
 accordance with Regulation S or pursuant to an available exemption from registration.

7. <u>General</u>

7.1 Time
 shall, in all respects, be of the essence hereof.

7.2 All
 references herein to monetary amounts are to lawful money of Canada.

7.3 The
 headings contained herein are for convenience only and shall not affect the meaning or interpretation
 hereof.

7.4 Except
 as expressly provided for in this Subscription Agreement and in the agreements, instruments
 and other documents provided for, contemplated or incorporated herein, this Subscription
 Agreement constitutes the only agreement between the parties with respect to the subject
 matter hereof and shall supersede any and all prior negotiations and understandings. This
 Subscription Agreement may be amended or modified in any respect by written instrument only.

7.5 The
 terms and provisions of this Subscription Agreement shall be binding upon and enure to the
 benefit of the Purchaser, the Corporation and their respective heirs, legal representatives,
 successors and assigns; provided that, except as herein provided, this Subscription Agreement
 shall not be transferable or assignable by any party without the written consent of the other.

7.6 This
 Subscription Agreement shall be governed by and construed in accordance with the laws of
 the Province of British Columbia and the laws of Canada applicable therein and the parties
 hereto hereby irrevocably attorn to the exclusive jurisdiction of the courts of the Province
 of British Columbia.

7.7 This
 Subscription Agreement is intended to and shall take effect on the date of acceptance of
 the subscription by the Corporation, notwithstanding its actual date of execution or delivery
 by any of the parties hereto, and shall be dated for reference as of the date of such acceptance
 by the Corporation.

7.8 The
 Corporation shall be entitled to rely on delivery of a facsimile copy of an executed subscription
 and acceptance by the Corporation of such subscription shall be legally effective to create
 a valid and binding Agreement between the Purchaser and the Corporation in accordance with
 the terms hereof.

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

7.10 The
 Purchaser acknowledges that the Purchaser has consented to and requested that all documents
 evidencing or relating in any way to the issuance of the Securities be drawn up in the English
 language only. **Le soussigne reconnait par les presentes avoir consenti et exige que tous les documents faisant foi ou se rapportant de quelque maniere a la vente des titres offerts soient rediges en anglais seulement.** 

7.11 Each
 of the parties hereto upon the request of the other parties hereto, whether before or after
 the Closing, shall do, execute, acknowledge and deliver or cause to be done, executed, acknowledged
 and delivered all such further acts, deeds, documents, assignments, transfers, conveyances,
 powers of attorney and assurances as reasonably may be necessary or desirable to complete,
 better evidence, or perfect the transactions contemplated herein.

8. <u>Execution & Delivery</u>

This Subscription Agreement may be executed in any number of counterparts and may be executed and delivered by facsimile, all of which when taken together shall be deemed to be one and the same document.

**THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK**

**<u>SCHEDULE "A"</u>**

**ACCREDITED INVESTOR CERTIFICATE**

This certificate contains certain specifically defined terms, highlighted in boldface and defined herein. If you are unsure as to the meanings of those terms, or are unsure as to the applicability of any provision below to you, please contact a representative of the Corporation (as defined herein), your dealer and/or legal advisor before completing this certificate.

**TO: A2Z SMART TECHNOLOGIES CORP.** (the "**Corporation**" or the "**issuer**")

In connection with the purchase by the undersigned purchaser (the "**Purchaser**" or "**you**") of securities of the Corporation pursuant to the Subscription Agreement to which this Certificate is attached, the Purchaser or the undersigned on behalf of the Purchaser, as the case may be, certifies that the Purchaser is purchasing securities of the Corporation as principal and is (and at the time of acceptance of the subscription will be) an "accredited investor" within the meaning of National Instrument 45-106 *Prospectus Exemptions* and Section 73.3 of the *Securities Act* (Ontario), as applicable, because the Purchaser is:

**<u>\*\*If you check box (j), (k) or (l), you must also complete the below FORM 45-106F9 - Risk Acknowledgement Form\*\*</u>**

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| | | |
|:---|:---|:---|
| ☐ | (a) | except in Ontario, a Canadian financial institution, or a Schedule III bank; |
| ☐ | (a.1) | in Ontario, a financial institution that is (i) a bank listed in Schedule I, II or III of the *Bank Act* (Canada); (ii) an association to which the *Cooperative Credit Associations Act* (Canada) applies or a central cooperative credit society for which an order has been made under subsection 473(1) of that Act; or (iii) a loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative or credit union league or federation that is authorized by a statute of Canada or Ontario to carry on business in Canada or Ontario, as the case may be; |
| ☐ | (b) | the Business Development Bank of Canada incorporated under the *Business Development Bank of Canada Act* (Canada); |
| ☐ | (c) | a subsidiary of any person or company referred to in paragraphs (a), (a.1) or (b), if the person or company owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary; |
| ☐ | (d) | a person or company registered under the securities legislation of a jurisdiction (province or territory) of Canada as an adviser or dealer; |
| ☐ | (e) | an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d); |
| ☐ | (e.1) | an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the *Securities Act* (Ontario) or the *Securities Act* (Newfoundland and Labrador); |
| ☐ | (f) | the Government of Canada or a jurisdiction (province or territory) of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction (province or territory) of Canada; |
| ☐ | (g) | a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec;  |
| ☐ | (h) | any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government; |

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| | | |
|:---|:---|:---|
| ☐ | (i) | a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction (province or territory) of Canada; |
| ☐ | (j) | an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that, before taxes, but net of any related liabilities, exceeds $1,000,000; *[**PLEASE ALSO COMPLETE SECTIONS 2-4 OF FORM 45-106F9 BELOW**]* |
| ☐ | (j.1) | an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000; |
| ☐ | (k) | an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; *[**PLEASE ALSO COMPLETE SECTIONS 2-4 OF FORM 45-106F9 BELOW**]* |
| ☐ | (l) | an individual who, either alone or with a spouse, has net assets of at least $5,000,000; *[**PLEASE ALSO COMPLETE SECTIONS 2-4 OF FORM 45-106F9 BELOW**]* |
| ☐ | (m) | a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements; |
| ☐ | (n) | an investment fund that distributes or has distributed its securities only to (i) a person that is or was an accredited investor at the time of the distribution, (ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [*Minimum amount investment*] or 2.19 [*Additional investment in investment funds*] of NI 45-106, or (iii) a person described in sub-paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [*Investment fund reinvestment*] of NI 45-106; |
| ☐ | (o) | an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt; |
| ☐ | (p) | a trust company or trust corporation registered or authorized to carry on business under the *Corporation and Loan Companies Act* (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be; |
| ☐ | (q) | a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction; |
| ☐ | (r) | a registered charity under the *Income Tax Act* (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded; |
| ☐ | (s) | an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function; |
| ☐ | (t) | a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors; |
| ☐ | (u) | an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser; |
| ☐ | (v) | (i) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor; or (ii) in Ontario, a person that is recognized or designated by the Ontario Securities Commission as an accredited investor; or |
| ☐ | (w) | a trust established by an accredited investor for the benefit of the accredited investor's family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor's spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor's spouse or of that accredited investor's former spouse. |

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For the purposes hereof, the following definitions are included for convenience:

(a) "*bank* "
 means a bank named in Schedule I or II of the *Bank Act* (Canada);

(b) "*Canadian financial institution*" means (i) an association governed by the *Cooperative Credit Associations Act* (Canada) or a central cooperative credit society for which an
 order has been made under section 473(1) of that Act, or (ii) a bank, loan corporation, trust
 company, trust corporation, insurance company, treasury branch, credit union, caisse populaire,
 financial services cooperative, or league that, in each case, is authorized by an enactment
 of Canada or a jurisdiction of Canada to carry on business in Canada or a jurisdiction of
 Canada;

(c) "*company* "
 means any corporation, incorporated association, incorporated syndicate or other incorporated
 organization;

(d) "*director* "
 means: (a) a member of the board of directors of a company or an individual who performs
 similar functions for a company, and (b) with respect to a person that is not a company,
 an individual who performs functions similar to those of a director of a company;

(e) "eligibility
 adviser" means: (a) a person that is registered as an investment dealer and authorized
 to give advice with respect to the type of security being distributed, and (b) in Saskatchewan
 or Manitoba, also means a lawyer who is a practicing member in good standing with a law society
 of a jurisdiction of Canada or a public accountant who is a member in good standing of an
 institute or association of chartered accountants, certified general accountants or certified
 management accountants in a jurisdiction of Canada provided that the lawyer or public accountant
 must not (i) have a professional, business or personal relationship with the issuer, or any
 of its directors, executive officers, founders, or control persons, and (ii) have acted for
 or been retained personally or otherwise as an employee, executive officer, director, associate
 or partner of a person that has acted for or been retained by the issuer or any of its directors,
 executive officers, founders or control persons within the previous 12 months;

(f) "*financial assets*" means (i) cash, (ii) securities, or (iii) a contract of insurance, a deposit
 or an evidence of a deposit that is not a security for the purposes of securities legislation;

(g) "*fully managed account*" means an account of a client for which a person makes the investment
 decisions if that person has full discretion to trade in securities for the account without
 requiring the client's express consent to a transaction;

(h) "*foreign jurisdiction*" means a country other than Canada or a political subdivision of a
 country other than Canada;

(i) "*investment fund*" has the same meaning as in National Instrument 81-106 *Investment Fund Continuous Disclosure*;

(j) "*person* "
 includes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 individual,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 partnership, trust, fund and an association, syndicate, organization or other organized group
 of persons whether incorporated or not, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an
 individual or other person in that person's capacity as a trustee, executor, administrator
 or personal or other legal representative.

(k) "*related liabilities*" means (i) liabilities incurred or assumed for the purpose of financing
 the acquisition or ownership of financial assets, or (ii) liabilities that are secured by
 financial assets;

(l) "*Schedule III bank*" means an authorized foreign bank named in Schedule III of the *Bank Act* (Canada);

(m) "*spouse* "
 means, an individual who, (i) is married to another individual and is not living separate
 and apart within the meaning of the *Divorce Act* (Canada), from the other individual,
 (ii) is living with another individual in a marriage-like relationship, including a marriage-like
 relationship between individuals of the same gender, or (iii) in Alberta, is an individual
 referred to in paragraph (i) or (ii), or is an adult interdependent partner within the meaning
 of the *Adult Interdependent Relationships Act* (Alberta); and

(n) "*subsidiary* "
 means an issuer that is controlled directly or indirectly by another issuer and includes
 a subsidiary of that subsidiary.

In NI 45-106 a person or company is considered to be an affiliated entity of another person or company if one is a subsidiary entity of the other, or if both are subsidiary entities of the same person or company, or if each of them is controlled by the same person or company.

In NI 45-106 a person (first person) is considered to control another person (second person) if (a) the first person, directly or indirectly, beneficially owns or exercises control or direction over securities of the second person carrying votes which, if exercised, would entitle the first person to elect a majority of the directors of the second person, unless that first person holds the voting securities only to secure an obligation, (b) the second person is a partnership, other than a limited partnership, and the first person holds more than 50% of the interests of the partnership, or (c) the second person is a limited partnership and the general partner of the limited partnership is the first person.

In NI 45-106 a trust company or trust corporation described in paragraph (p) above of the definition of "accredited investor" (other than in respect of a trust company or trust corporation registered under the laws of Prince Edward Island that is not registered or authorized under the *Corporation and Loan Companies Act* (Canada) or under comparable legislation in another jurisdiction of Canada) is deemed to be purchasing as principal.

In NI 45-106 a person described in paragraph (q) above of the definition of "accredited investor" is deemed to be purchasing as principal.

*[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]*

 

The foregoing representations contained in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the Closing Date. If any such representations shall not be true and accurate prior to the Closing Date, the undersigned shall give immediate written notice of such fact to the Corporation.

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| | |
|:---|:---|
| Date: | ***If this document is being executed on behalf of the*** |
| | ***Purchaser by an agent, complete the information below:*** |
| <br> Print name of Purchaser | <br> Print name of Agent |
| X | X |
| <br> Signature of Purchaser or authorized signatory of Purchaser | <br> Signature of agent of Purchaser or authorized signatory of Agent |
| <br> Print name of authorized signatory of Purchaser (if applicable) | <br>Print name of authorized signatory of agent (if applicable) |
| <br> Print title of authorized signatory of Purchaser (if applicable) | <br> Print title of authorized signatory of agent (if applicable) |

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![](ex4-9_003.jpg)

![](ex4-9_004.jpg)

**SCHEDULE "B"**

**U.S. ACCREDITED INVESTOR CERTIFICATE**

**TO: A2Z SMART TECHNOLOGIES CORP.** (the "**Corporation**")

Reference is made to the subscription agreement between A2Z Smart Technologies Corp. (the "**Corporation**") and the undersigned (the "**Purchaser**") of which this Schedule "B" – U.S. Accredited Investor Certificate, once executed, forms a part (the "**Subscription Agreement**"). Upon execution of this U.S. Accredited Investor Certificate by the Purchaser, this U.S. Accredited Investor Certificate shall be incorporated into and form a part of the Subscription Agreement. All capitalized terms used herein, unless otherwise defined, have the meanings ascribed thereto in the Subscription Agreement.

1. In addition to the covenants, representations and warranties contained in the Subscription Agreement, the undersigned Purchaser covenants, represents and warrants to the Corporation that the Purchaser (on its own behalf and, if applicable, on behalf of each beneficial Purchaser for whom the Purchaser is contacting hereunder):

(a) has
 such knowledge and experience in financial and business matters as to be capable of evaluating
 the merits and risks of the investment and it is able to bear the economic risk of loss of
 the investment;

(b) is
 purchasing the Units and any Warrant Shares ultimately issuable upon exercise of the Warrants
 for its own account or for the account of one or more beneficial purchasers for whom it is
 exercising sole investment discretion, for investment only and not with a view to resale
 or distribution and in particular, neither it nor any beneficial purchaser for whose account
 it is purchasing the Units has any intention to distribute either directly or indirectly
 any of the Securities in the United States or to U.S. Persons unless such Securities are
 registered under the 1933 Act and any applicable state securities laws, or in reliance on
 and pursuant to an exemption from such requirements. The Purchaser acknowledges that the
 Corporation has not undertaken, and will have no obligation, to register any of the Securities
 under the 1933 Act or any applicable state securities laws;

(c) understands
 that the Securities (i) have not been and will not be registered under the 1933 Act or the
 securities laws of any state of the United States, (ii) that the purchase and sale contemplated
 hereby is being made in reliance on an exemption from registration under Rule 506(b) of Regulation
 D based in part upon the Purchaser's representations contained herein, including without
 limitation that the Purchaser is an "accredited investor" within the meaning
 of Rule 501(a) of Regulation D, (iii) that the Securities may not be offered or sold, directly
 or indirectly, in the United States or to, or for the account or benefit of, a U.S. Person
 or person in the United States except pursuant to registration under the 1933 Act and the
 securities laws of all applicable states or available exemptions therefrom, and (iv) the
 Corporation has no obligation or present intention of filing a registration statement under
 the 1933 Act or the securities laws of any applicable states in respect of any of the Securities;

(d) is
 an "accredited investor", as defined in Rule 501(a) of Regulation D, and satisfies
 one or more of the categories indicated below (please initial on the appropriate line or
 lines), and is:

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| | |
|:---|:---|
| Category 1.<br> [Rule 501(a)(1)] | A bank, as defined in Section 3(a)(2) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or |
| Category 2.<br> [Rule 501(a)(1)] | A savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or |
| Category 3.<br> [Rule 501(a)(1)] | A broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act of 1934, as amended; or |

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| | |
|:---|:---|
| Category 4.<br> [Rule 501(a)(1)] | An investment adviser registered pursuant to Section 203 of the U.S. Investment Advisers Act of 1940, as amended, or registered pursuant to the laws of a state; or |
| Category 5.<br> [Rule 501(a)(1)] | An investment adviser relying on the exemption from registering with the Commission under Section 203(l) or (m) of the U.S. Investment Advisers Act of 1940, as amended; or |
| Category 6.<br> [Rule 501(a)(1)] | An insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; or |
| Category 7.<br> [Rule 501(a)(1)] | An investment company registered under the U.S. Investment Company Act of 1940, as amended; or |
| Category 8.<br> [Rule 501(a)(1)] | A business development company as defined in Section 2(a)(48) of the U.S. Investment Company Act of 1940, as amended; or |
| Category 9.<br> [Rule 501(a)(1)] | A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958, as amended; or |
| Category 10.<br> [Rule 501(a)(1)] | A Rural Business Investment Company as defined in Section 384A of the U.S. Consolidated Farm and Rural Development Act of 1972, as amended; or |
| Category 11.<br> [Rule 501(a)(1)] | A plan established and maintained by a state, its political subdivision or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with assets in excess of U.S. $5,000,000; or |
| Category 12.<br> [Rule 501(a)(1)] | An employee benefit plan within the meaning of the U.S. Employee Retirement Income Security Act of 1974, as amended**,** in which the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company or registered investment advisor, or an employee benefit plan with total assets in excess of U.S. $5,000,000 or, if a self-directed plan, the investment decisions are made solely by persons who are accredited investors; or |
| Category 13.<br> [Rule 501(a)(2)] | A private business development company as defined in Section 202(a)(22) of the U.S. Investment Advisers Act of 1940, as amended; or |
| Category 14.<br> [Rule 501(a)(3)] | An organization described in Section 501(c)(3) of the U.S. Internal Revenue Code of 1986, as amended, a corporation, a Massachusetts or similar business trust, a partnership, or a limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of U.S. $5,000,000; or |
| Category 15.<br> [Rule 501(a)(4)] | A director, executive officer or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer; or |

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| | | |
|:---|:---|:---|
| __________ | Category 16.<br> [Rule 501(a)(5)] | A natural person (including an IRA (Individual Retirement Account) owned by such person) whose individual net worth, or joint net worth with that person's spouse or spousal equivalent, exceeds U.S. $1,000,000; or |
|  |  | (**Note**: For the purposes of calculating "net worth" |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 person's primary residence shall not be included as an asset;

(ii) indebtedness
 that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time
 of the closing of the Offering, shall not be included as a liability (except that if the amount of such indebtedness outstanding
 at the time of the closing of the Offering 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 shall be included as a liability); and

(iii) indebtedness
 that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence shall
 be included as a liability.)

---

| | |
|:---|:---|
|  | (**Note**: For the purposes of calculating "joint net worth", joint net worth can be the aggregate net worth of the investor and spouse or spousal equivalent, and assets need not be held jointly to be included in the calculation. Reliance on the joint net worth standard does not require that the securities be purchased jointly.) |
|  | (**Note**: The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.) |
| Category 17.<br> [Rule 501(a)(6)] | A natural person (including an IRA (Individual Retirement Account) owned by such person) who had an individual income in excess of U.S. $200,000 in each year of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of U.S. $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or<br>(**Note**: The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.) |
| Category 18.<br> [Rule 501(a)(7)] | A trust, with total assets in excess of U.S. $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under Regulation D under the U.S. Securities Act; or |
| Category 19.<br> [Rule 501(a)(8)] | An entity in which each of the equity owners are accredited investors; or<br>(**Note:** It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this category. If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this category may be available.) |
| Category 20.<br> [Rule 501(a)(9)] | An entity, of a type not listed in Categories 1 through 14, 18 or 19 above, not formed for the specific purpose of acquiring the securities offered, owning "investments" (as defined in Rule 2a51-1(b) under the U.S. Investment Company Act of 1940, as amended) in excess of U.S. $5,000,000; or |

---

---

| | |
|:---|:---|
| Category 21.<br> [Rule 501(a)(10)] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A natural person holding in good standing one or more of the following professional licenses:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) General Securities Representative license (Series 7);<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Private Securities Offerings Representative license (Series 82), and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Investment Adviser Representative license (Series 65); or |
| Category 22.<br> [Rule 501(a)(11)] | A natural person who is a "knowledgeable employee" (as defined in Rule 3c-5(a)(4) under the U.S. Investment Company Act of 1940, as amended) of the issuer of the securities being offered or sold where the issuer would be an "investment company" (as defined in Section 3 of U.S. Investment Company Act of 1940, as amended), but for the exclusion provided by either Section 3(c)(1) or section 3(c)(7) of U.S. Investment Company Act of 1940, as amended; or |
| Category 23.<br> [Rule 501(a)(12)] | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A "family office" (as defined in Rule 202(a)(11)(G)-1 under the U.S. Investment Advisers Act of 1940, as amended):<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) with assets under management in excess of U.S. $5,000,000,<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) that is not formed for the specific purpose of acquiring the securities offered, and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or |
| Category 24.<br> [Rule 501(a)(13)] | A "family client" (as defined in Rule 202(a)(11)(G)-1 under the U.S. Investment Advisers Act of 1940, as amended) of a family office meeting the requirements in Category 23 above and whose prospective investment in the issuer is directed by such family office pursuant to clause (iii) of Category 23. |

---

***If you checked Category 19, please indicate the name and category of accredited investor (by reference to the applicable number in this section 2(d)) of each equity owner:***

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| | |
|:---|:---|
| **Name of Equity Owner** | **Category of Accredited Investor** |

---

(e) acknowledges
 that the Purchaser has not purchased the Units as a result of any form of "general
 solicitation" or "general advertising" (as such terms are defined in Regulation
 D under the 1933 Act) including advertisements, articles, notices or other communications
 published in any newspaper, magazine or similar media (including any press release of the
 Corporation) or broadcast over the Internet, radio, or television, or any seminar or meeting
 whose attendees have been invited by general solicitation or general advertising;

(f) understands
 that the Securities will not be registered under the 1933 Act and are "restricted securities"
 as that term is defined in Rule 144(a)(3) of the 1933 Act and agrees that if the Purchaser
 decides to offer, sell or otherwise transfer any of the Securities, the Purchaser will not
 offer, sell or otherwise transfer any of such Securities directly or indirectly, unless:

(A) the sale is to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the
 sale is made outside the United States in a transaction meeting the requirements of Rule
 904 of Regulation S under the 1933 Act and in compliance with applicable local laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the
 sale is made pursuant to the exemption from the registration requirements under the 1933
 Act provided by Rule 144 or 144A thereunder, if available, and in compliance with any applicable
 state securities laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the
 Securities are sold in a transaction that does not require registration under the 1933 Act
 or any applicable state laws and regulations governing the offer and sale of securities,
 and the Purchaser has prior to such sale furnished to the Corporation an opinion of counsel
 reasonably satisfactory to the Corporation, stating that such sale, transfer, assignment
 or hypothecation is exempt from the registration and prospectus delivery requirements of
 the 1933 Act and any applicable state securities laws;

(g) acknowledges
 that it has not purchased the Units as a result of, and will not itself engage in, any "directed
 selling efforts" (as defined in Regulation S under the 1933 Act) in the United States
 in respect of the Securities which would include any activities undertaken for the purpose
 of, or that could reasonably be expected to have the effect of, conditioning the market in
 the United States for the resale of the Securities;

(h) understands
 and acknowledges that any certificates representing any Securities sold in the United States,
 and all certificates issued in exchange for or in substitution of such certificates will
 bear the following legend upon the original issuance of any such Securities and until the
 legend is no longer required under applicable requirements of the 1933 Act or applicable
 state securities laws:

"THE SECURITIES REPRESENTED HEREBY [for Warrants include: AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON WITHIN THE MEANING OF REGULATION S, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

*provided* that, if at the time of original sale or issuance of the Securities to the Purchaser, the Corporation is a "foreign issuer" within the meaning of Regulation S and the Securities are being sold pursuant to Rule 904 of Regulation S, the legend may be removed by providing to Computershare Trust Company, as registrar and transfer agent (i) a declaration in the form attached hereto as Exhibit I to Schedule "B" (or as the Corporation may prescribe from time to time) and (ii) if required by Computershare Trust Company, an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, or other evidence reasonably satisfactory to the Corporation, that the proposed transfer may be effected without registration under the 1933 Act;

*and provided, further*, that, if any Securities are being sold under Rule 144, if available, the legend may be removed by delivering to Computershare Trust Company an opinion of counsel of recognized standing reasonably satisfactory to the Corporation, that the legend is no longer required under applicable requirements of the 1933 Act or state securities laws;

(i) understands
 and acknowledges that in addition to the legend set forth in Section (h) above, the certificates
 representing the Warrants will bear a legend in substantially the following form:

"THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."

(j) understands
 the Warrants may not be exercised in the United States or by, or on behalf of, a U.S. Person
 or a person in the United States unless exemptions are available from the registration requirements
 of the 1933 Act and the securities laws of all applicable states, and the holder has furnished
 an opinion of counsel of recognized standing in form and substance reasonably satisfactory
 to the Corporation to such effect; provided that a holder of warrants (a "**Warrantholder** ")
 will not be required to deliver an opinion of counsel in connection with its due exercise
 of the Warrants that comprise part of the Units pursuant to the Offering, for its own account
 or for the account of the original beneficial purchaser, if any, at a time when the Warrantholder
 and such original beneficial purchaser, if any, are "accredited investors" within
 the meaning of Rule 501(a) of Regulation D;

(k) understands
 that the Corporation (i) is under no obligation to remain a "foreign issuer"
 (as defined in Regulation S), and (ii) may engage in one or more transactions which could
 cause the Corporation not to be a "foreign issuer";

(l) consents
 to the Corporation making a notation on its records or giving instruction to the registrar
 and transfer agent of the Corporation in order to implement the restrictions on transfer
 set forth and described herein;

(m) if
 an individual, is a resident of the state or other jurisdiction in the address set out in
 the "Address of Residence" on page 2 of the Subscription Agreement, or if the
 Purchaser is not an individual, the office of the Purchaser at which the Purchaser received
 and accepted the offer to purchase the Units is the address set out in the "Address
 of Residence" on page 2 of the Subscription Agreement;

(n) understands
 and acknowledges that the publicly available materials regarding the Corporation in Canada
 do not contain all the information that would be found in the applicable registration statement
 if the Securities were registered under the 1933 Act and that the Corporation's financial
 statements have been prepared in accordance with International Financial Reporting Standards
 ("IFRS") as issued by the International Accounting Standards Board and are subject
 to Canadian auditing and auditor independence standards. IFRS differs in some respects from
 United States generally accepted accounting principles, and thus may not be comparable to
 financial statements of United States companies;

(o) has
 relied solely upon its own independent investigation in making a decision to purchase the
 Units and acknowledges that (i) the Units are speculative investments which involve a substantial
 degree of risk with no assurance of any income from such investments and the possibility
 that such may become worthless and (ii) there is no market for the Securities in the United
 States, and investors must therefore be prepared to bear the economic risks for an indefinite
 period;

(p) certifies
 that the Purchaser has received or has had full access to all the information the Purchaser
 considers necessary or appropriate to make an informed investment decision with respect to
 the Units;

(q) certifies
 that the Purchaser has had an opportunity to ask questions and receive answers from the Corporation
 regarding the Corporation's business, management and financial affairs and the terms
 and conditions of the offer, sale and issuance of the Securities and to obtain additional
 information (to the extent the Corporation possessed such information or could acquire it
 without unreasonable effort or expense) necessary to verify any information furnished to
 the Purchaser or to which the Purchaser had access;

(r) certifies
 that the offer, sale and issuance of the Securities is not a transaction, or part of a chain
 of transactions which, although in technical compliance with Regulation D promulgated under
 the 1933 Act, is part of a plan or scheme to evade the registration requirements of the 1933
 Act;

(s) certifies
 that, if the Purchaser is an entity or organization, the Purchaser was not formed for the
 specific purpose of acquiring the Units;

(t) (i)
 the funds representing the aggregate purchase price which will be advanced by the Purchaser
 for the subscription for the Units in the Offering will not represent proceeds of crime for
 the purposes of the United States Uniting and Strengthening America by Providing Appropriate
 Tools Required to Intercept and Obstruct Terrorism Act (the "**PATRIOT Act** "),
 and the Purchaser acknowledges that the Corporation, and/or any of its respective affiliates
 in the United States may in the future be required by law to disclose the Purchaser's
 name and other information relating to the Subscription Agreement and the undersigned's
 subscription hereunder, on a confidential basis, pursuant to the PATRIOT Act, and (ii) no
 portion of the aggregate purchase price to be provided by the Purchaser (A) has been or will
 be derived from or related to any activity that is deemed criminal under the laws of the
 United States of America, or any other jurisdiction, or (B) is being tendered on behalf of
 a person or entity that has not been identified to or by the Purchaser; and the Purchaser
 shall promptly notify the Corporation and its affiliates in the United States if the Purchaser
 discovers that any of such representations ceases to be true and provide the Corporation
 and any of its affiliates in the United States with appropriate information in connection
 therewith;

(u) it
 acknowledges and understands that no agency, governmental authority, regulatory body, stock
 exchange or other entity (including, without limitation, the United States Securities and
 Exchange Commission or any state securities commission) has made any finding or determination
 as to the merit of investment in, nor have any such agencies or governmental authorities
 made any recommendation or endorsement with respect to, any of the Units;

(n) understands
 and acknowledges that (i) if the Corporation is deemed to have been at any time previously
 an issuer with no or nominal operations and no or nominal assets other than cash and cash
 equivalents, Rule 144 under the 1933 Act may not be available for resales of the Securities
 and (ii) the Corporation is not obligated to make Rule 144 under the 1933 Act available for
 resales of such Securities; and

(o) understands
 and agrees that there may be material tax consequences to the Purchaser of an acquisition,
 disposition or exercise of any of the Securities; the Corporation gives no opinion and makes
 no representation with respect to the tax consequences to the Purchaser under United States,
 state, local or foreign tax law of the Purchaser's acquisition or disposition of such
 Securities; in particular, no determination has been made whether the Corporation will be
 a "passive foreign investment company" within the meaning of Section 1297 of
 the United States Internal Revenue Code.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned has executed this U.S. Accredited Investor Certificate as of the day of _______________________, 202__.

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| | |
|:---|:---|
| **If a Corporation, Partnership or Other Entity:** | **If an Individual:** |
| Print or Type Name | Print or Type Name |
| Signature | Signature |
| Name and Title of Signatory | Social Security/Tax I.D. No. |

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**THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK**

**<u>EXHIBIT I TO SCHEDULE "B"</u>**

FORM OF DECLARATION FOR REMOVAL OF LEGEND

TO: Computershare Trust Company as registrar and transfer agent of A2Z Smart Technologies Corp. <br>AND TO: A2Z Smart Technologies Corp.

The undersigned (a) acknowledges that the sale of ____________________ securities of A2Z Smart Technologies Corp. (the "**Corporation**") represented by certificate number _________________ or held in Direct Registration System (DRS) Account No._________________,<sup>1</sup> to which this declaration relates is being made in reliance on Rule 904 of Regulation S ("**Regulation S**") under the United States Securities Act of 1933, as amended (the "**1933 Act**"), and (b) certifies that (1) the undersigned is not (i) an "affiliate" of the Corporation (as that term is defined in Rule 405 under the 1933 Act), except solely by virtue of being an officer or director of the Corporation, (ii) a "distributor" as defined in Regulation S or (iii) an affiliate of a distributor; (2) the offer of such securities was not made to a person in the United States and either (i) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was outside the United States, or (ii) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market within the meaning of Rule 902(b) of Regulation S, and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States or a U.S. person; (3) neither the seller nor any affiliate of the seller nor any person acting on their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such securities; (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as that term is defined in Rule 144(a)(3) under the 1933 Act); (5) the seller does not intend to replace securities sold in reliance on Rule 904 of Regulation S with fungible unrestricted securities; and (6) the sale is not a transaction, or part of a series of transactions, which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Terms used herein have the meanings given to them by Regulation S.

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| | |
|:---|:---|
| Dated: |  |
|  | Authorized signatory |
|  | Name of Seller (**please print**) |
|  | Name of authorized signatory (**please print**) |
|  | Title of authorized signatory (**please print**) |

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**Affirmation By Seller's Broker-Dealer (required for sales in accordance with Section (b)(2)(ii) above)**

We have read the foregoing representations of our customer, _________________________ (the "**Seller**") dated _______________________, with regard to our sale, for such Seller's account, of the securities of the Corporation described therein (the "**Securities**"). We have executed sales of the Securities pursuant to Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "**1933 Act**"), on behalf of the Seller. In that connection, we hereby represent to you as follows:

(1) no
 offer to sell Securities was made to a person in the United States;

(2) the
 sale of the Securities was executed in, on or through the facilities of the Toronto Stock
 Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated
 offshore securities market (as defined in Rule 902(b) of Regulation S under the 1933 Act),
 and, to the best of our knowledge, the sale was not pre-arranged with a buyer in the United
 States;

(3) no
 "directed selling efforts" were made in the United States by the undersigned,
 any affiliate of the undersigned, or any person acting on behalf of the undersigned; and

(4) we
 have done no more than execute the order or orders to sell the Securities as agent for the
 Seller and will receive no more than the usual and customary broker's commission that
 would be received by a person executing such transaction as agent.

For purposes of these representations: "**affiliate**" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the undersigned; "**directed selling efforts**" means any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities (including, but not be limited to, the solicitation of offers to purchase the Securities from persons in the United States); and "**United States**" means the United States of America, its territories or possessions, any State of the United States, and the District of Columbia.

Legal counsel to the Corporation shall be entitled to rely upon the representations, warranties and covenants contained herein to the same extent as if this affirmation had been addressed to them.

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| |
|:---|
| Date: |
| Name of Firm |

---

By:   <br> Authorized officer

**Schedule "C"**

**QUALIFIED INSTITUTIONAL BUYER LETTER**

---

| | |
|:---|:---|
| **TO:** | **A2Z SMART TECHNOLOGIES CORP.** (the "**Corporation**") |

---

Capitalized terms used in this Schedule "C" and defined in the Subscription Agreement to which the Schedule "C" is attached have the meaning defined in the Subscription Agreement unless otherwise defined herein.

This Qualified Institutional Buyer Letter is being delivered in connection with the execution and delivery of the Subscription Agreement of the Purchaser in connection with the purchase of Units of the Corporation. The Purchaser represents, warrants and covenants (which representations, warranties and covenants will survive the Closing Date) on its own behalf and, if applicable, on behalf of any beneficial purchaser for whom the Purchaser is contracting hereunder to and with the Corporation and acknowledges that the Corporation and its counsel are relying thereon that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 understands and acknowledges that the Securities have not been and will not be registered
 under the United States Securities Act of 1933, as amended (the "**1933 Act** ")
 or the securities laws of any state of the United States, and that the offer and sale of
 Units to it are being made in reliance upon Rule 506(b) of Regulation D under the 1933 Act
 and similar exemptions under applicable state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 is a Qualified Institutional Buyer and is acquiring the Units (i) for its own account and
 not on behalf of any other person, or (ii) for the account of a Qualified Institutional Buyer
 with respect to which it exercises sole investment discretion, for investment purposes, and,
 in either case, not with a view to any resale, distribution or other disposition of the Securities
 in violation of United States federal or state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 acknowledges that it has not purchased the Units as a result of any "directed selling
 efforts" (as defined in Regulation S under the 1933 Act ()"**Regulation S** ")
 or any "general solicitation" or "general advertising" (as those
 terms are used in Regulation D under the 1933 Act), including advertisements, articles, notices
 or other communications published in any newspaper, magazine or similar media or on the Internet,
 or broadcast over radio or television, or the internet, or any seminar or meeting whose attendees
 have been invited by general solicitation or general advertising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it
 understands and acknowledges that the Securities acquired by it in the United States will
 be considered "restricted securities" within the meaning of Rule 144(a)(3) under
 the 1933 Act ()"**Restricted Securities** "). To induce the Corporation to issue
 the Common Shares to the Purchaser without a 1933 Act restrictive legend, the Purchaser represents,
 warrants and covenants to the Corporation as follows (collectively, the "**Restricted Security Agreements** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 in the future it decides to offer, sell, pledge, or otherwise transfer, directly or indirectly,
 any of the Common Shares it will do so only: (A) to the Corporation or its subsidiaries,
 as applicable, (though the Corporation or its subsidiaries, as applicable, are under no obligation
 to purchase any such Securities) or (B) outside the United States in accordance with Rule
 904 of Regulation S under the 1933 Act and in compliance with applicable local laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Common Shares cannot be offered, sold, pledged or otherwise transferred, directly or indirectly,
 in the United States or to, or 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;(iii) it
 will cause any CDS Clearing and Depository Services Inc. ()"**CDS**") participant
 holding the Common Shares on its behalf and the beneficial purchasers, if any, of the Common
 Shares to comply with the Restricted Security Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for
 so long as the Common Shares constitute Restricted Securities, it will not deposit any of
 the Common Shares into the facilities of the Depository Trust Company, or a successor depository
 within the United States, or arrange for the registration of any the Common Shares with Cede
 & Co. or any successor thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) at
 any time of exercise of any Warrants for Warrant Shares, it will be a Qualified Institutional
 Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if
 at any time the Common Shares constitute Restricted Securities, and it is advised by the
 Corporation that the Corporation has ceased to be a "foreign issuer" as defined
 in Regulation S, it will return such Common Shares, if any, to the Corporation for the imposition
 of a U.S. Securities Act legend;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it
 has implemented appropriate internal controls and procedures to ensure that the Common Shares
 shall be properly identified in its records as Restricted Securities that are subject to
 the re-sale and transfer restrictions set forth above in (d) notwithstanding the absence
 of a U.S. restrictive legend or restricted CUSIP number;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) it
 understands and acknowledges that it is expected that (i) the Common Shares will be registered
 as a direct registration statement and will not be identified by a restricted CUSIP and (ii)
 no certificates evidencing such securities will be issued by the Corporation in reliance
 on our agreement with, and to, the Corporation to comply with the Restricted Security Agreements
 and we will receive only a customer confirmation in respect of our purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) understands
 and acknowledges that any certificates representing any Warrants and Warrants Shares sold
 or issued in the United States, and all certificates issued in exchange for or in substitution
 of such certificates will bear the following legend upon the original issuance of any such
 Warrants or Warrant Shares, as applicable, and until the legend is no longer required under
 applicable requirements of the 1933 Act or applicable state securities laws:

"THE SECURITIES REPRESENTED HEREBY [for Warrants include: AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON WITHIN THE MEANING OF REGULATION S, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) understands
 and acknowledges that in addition to the legend set forth in Section (g) above, the certificates
 representing the Warrants will bear a legend in substantially the following form:

"THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it
 understands that prior to exercise of any Warrants it would be required to deliver to the
 Corporation a notice of exercise for the Warrants substantially in a form acceptable to the
 Corporation and as reflected in the Warrant Certificate, which is expected to require it
 to either (a) represent that at the time of the exercise of any Warrants, it is exercising
 such securities for its own account or for the account of the original beneficial purchaser
 for whose account it originally purchased the Warrants, and each of it and such original
 beneficial purchaser, if any, was a Qualified Institutional Buyer on the date of the purchase
 and exercise of the Warrants, or (b) deliver a written opinion of counsel in form and substance
 reasonably satisfactory to the Corporation to the effect that the exercise of the Warrants
 and issuance of the Warrant Shares is exempt from the registration requirements of the 1933
 Act and all applicable state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) it
 has had access to such financial and other information concerning the Corporation and the
 Securities as it has deemed necessary in connection with its decision to purchase the Units,
 including an opportunity to ask questions of, and request information from, the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) it
 has such knowledge and experience in financial and business matters as to be capable of evaluating
 the merits and risks of its investment in the Units and is able to bear the economic risks
 of such investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) it
 consents to the Corporation making a notation on its records or giving instructions to any
 transfer agent of the Corporation in order to implement the restrictions on transfer set
 forth and described herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) if
 required by applicable securities legislation, regulatory policy or order or by any securities
 commission, stock exchange or other regulatory authority, the Purchaser will execute, deliver,
 file and otherwise assist the Corporation in filing reports, questionnaires, undertakings
 and other documents with respect to the ownership of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) it
 acknowledges that neither the Corporation, nor any person representing the Corporation has
 made any representation to it with respect to the Corporation or the offering or sale of
 the Units other than the information contained or incorporated by reference in the Subscription
 Agreement, which has been delivered to it and upon which it is relying in making its investment
 decision with respect to the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) it
 understands that the Corporation is not obligated to file and have no present intention of
 filing with the U.S. Securities and Exchange Commission or with any state securities administrator
 any registration statement in respect of re-sales of the Securities in the United States,
 and acknowledges that there are substantial restrictions on the transferability of the Securities
 and that it may not be possible for the Purchaser to readily liquidate his, her or its investment
 in the case of an emergency at any time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) it
 understands and acknowledges that the publicly available materials regarding the Corporation
 in Canada do not contain all the information that would be found in the applicable registration
 statement if the Securities were registered under the 1933 Act and that the Corporation's
 financial statements have been prepared in accordance with International Financial Reporting
 Standards ("IFRS") as issued by the International Accounting Standards Board
 and are subject to Canadian auditing and auditor independence standards. IFRS differs in
 some respects from United States generally accepted accounting principles, and thus may not
 be comparable to financial statements of United States companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) it
 understands and agrees that there may be material tax consequences to the Purchaser of an
 acquisition, disposition or exercise of any of the Securities; the Corporation gives no opinion
 and makes no representation with respect to the tax consequences to the Purchaser under United
 States, state, local or foreign tax law of the Purchaser's acquisition or disposition
 of such Securities; in particular, no determination has been made whether the Corporation
 will be a "passive foreign investment company" within the meaning of Section
 1297 of the United States Internal Revenue Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) the
 purchase of the Units hereunder is not a transaction, or part of a chain of transactions
 which, although in technical compliance with Regulation D under the 1933 Act, is part of
 a plan or scheme to evade the registration requirements of the 1933 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) it
 acknowledges and understands that no agency, governmental authority, regulatory body, stock
 exchange or other entity (including, without limitation, the United States Securities and
 Exchange Commission or any state securities commission) has made any finding or determination
 as to the merit of investment in, nor have any such agencies or governmental authorities
 made any recommendation or endorsement with respect to, any of the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) it
 represents and warrants that (i) the funds representing the aggregate purchase price which
 will be advanced by the Purchaser for the subscription for the Units in the Offering will
 not represent proceeds of crime for the purposes of the United States Uniting and Strengthening
 America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the
 "**PATRIOT Act** "), and the Purchaser acknowledges that the Corporation, and/or
 any of its affiliates in the United States may in the future be required by law to disclose
 the Purchaser's name and other information relating to the Subscription Agreement and
 the undersigned's subscription hereunder, on a confidential basis, pursuant to the
 PATRIOT Act, and (b) no portion of the aggregate purchase price to be provided by the Purchaser
 (i) has been or will be derived from or related to any activity that is deemed criminal under
 the laws of the United States of America, or any other jurisdiction, or (ii) is being tendered
 on behalf of a person or entity that has not been identified to or by the Purchaser; and
 the Purchaser shall promptly notify the the Corporation and its affiliates in the United
 States if the Purchaser discovers that any of such representations ceases to be true and
 provide the Corporation and any of its affiliates in the United States with appropriate information
 in connection therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) it
 acknowledges that the representations, warranties and covenants contained in this Schedule
 are made by it with the intent that they may be relied upon by the Corporation in determining
 its eligibility or the eligibility of others on whose behalf it is contracting thereunder
 to purchase the Units. It agrees that by accepting the securities it shall be representing
 and warranting that the representations and warranties above are true as at the Closing with
 the same force and effect as if they had been made by it at the Closing and that they shall
 survive the purchase by it of securities and shall continue in full force and effect notwithstanding
 any subsequent disposition by it of such Securities.

 

*[The remainder of this page intentionally left blank. Signature page follows.]*

The foregoing representations and warranties are true and accurate as of the date of this Qualified Institutional Buyer Letter and will be true and accurate as of the Closing Date. If any such representation or warranty shall not be true and accurate prior to such Closing Date, the Purchaser shall give immediate written notice of such fact to the Corporation.

---

| | | | |
|:---|:---|:---|:---|
| Dated: | , 202__. |  |  |
|  |  | Print name of Purchaser | Print name of Purchaser |
|  |  | By: |  |
|  |  |  | Signature |
|  |  | Print name of Signatory (if different from the Purchaser) | Print name of Signatory (if different from the Purchaser) |
|  |  | Title | Title |

---

**SCHEDULE "D"**

**FORM 4C**

**CORPORATE PLACEE REGISTRATION FORM**

This Form will remain on file with the Exchange and must be completed if required under section 4(b) of Part II of Form 4B. The corporation, trust, portfolio manager or other entity (the "Placee") need only file it on one-time basis, and it will be referenced for all subsequent Private Placements in which it participates. If any of the information provided in this Form changes, the Placee must notify the Exchange prior to participating in further placements with Exchange listed Issuers. If as a result of the Private Placement, the Placee becomes an Insider of the Issuer, Insiders of the Placee are reminded that they must file a Personal Information Form (2A) or, if applicable, Declarations, with the Exchange.

1. Placee
 Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Name: <u>____________________________________________________________________________</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Complete
 Address: <u>________________________________________________ __________________</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Jurisdiction
 of Incorporation or Creation: <u>_________________________________________________</u> 

2. (a) Is
 the Placee purchasing securities as a portfolio manager: (Yes/No)? <u>_____________________________</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Is
 the Placee carrying on business as a portfolio manager outside of Canada: (Yes/No)? __________

3. If
 the answer to 2(b) above was "Yes", the undersigned certifies that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is purchasing securities of an Issuer on behalf of managed accounts for which it is making
 the investment decision to purchase the securities and has full discretion to purchase or
 sell securities for such accounts without requiring the client's express consent to
 a transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 carries on the business of managing the investment portfolios of clients through discretionary
 authority granted by those clients (a "portfolio manager" business) in ____________________
 [jurisdiction], and it is permitted by law to carry on a portfolio manager business in that
 jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 was not created solely or primarily for the purpose of purchasing securities of the Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 total asset value of the investment portfolios it manages on behalf of clients is not less
 than $20,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it
 has no reasonable grounds to believe, that any of the directors, senior officers and other
 insiders of the Issuer, and the persons that carry on investor relations activities for the
 Issuer has a beneficial interest in any of the managed accounts for which it is purchasing.

4. If
 the answer to 2(a). above was "No", please provide the names and addresses of
 Control Persons of the Placee:

---

| | | | |
|:---|:---|:---|:---|
| **Name \*** | **City** | **Province or State** | **Country** |

---

\* If the Control Person is not an individual, provide the name of the individual that makes the investment decisions on behalf of the Control Person.

5. Acknowledgement - Personal
 Information and Securities Laws

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Personal
 Information" means any information about an identifiable individual, and includes information
 contained in sections 1, 2 and 4, as applicable, of this Form.

The undersigned hereby acknowledges and agrees that it has obtained the express written consent of each individual to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 disclosure of Personal Information by the undersigned to the Exchange (as defined in Appendix
 6B) pursuant to this Form; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 collection, use and disclosure of Personal Information by the Exchange for the purposes described
 in Appendix 6B or as otherwise identified by the Exchange, from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 undersigned acknowledges that it is bound by the provisions of applicable Securities Law,
 including provisions concerning the filing of insider reports and reports of acquisitions.

Dated and certified (if applicable), acknowledged and agreed, at<u> </u>on<u> </u>

---

| |
|:---|
| (Name of Purchaser - please print) |
| (Authorized Signature) |
| (Official Capacity - please print) |
| (Please print name of individual whose signature appears above) |

---

**THIS IS NOT A PUBLIC DOCUMENT**

## Exhibit 4.10

**Exhibit 4.10**

**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE JULY 21, 2023.**

**WITHOUT PRIOR WRITTEN APPROVAL OF TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL JULY 21, 2023.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

**THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THESE WARRANTS AND THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATIONS UNDER THE U.S. SECURITIES ACT.**

**FORM OF** **WARRANTS TO PURCHASE<br> COMMON SHARES OF A2Z SMART TECHNOLOGIES CORP.**

---

| | |
|:---|:---|
| **Warrant Certificate Number:** | **Number of Warrants:** |

---

THIS IS TO CERTIFY THAT for value received (the "**Warrantholder**") has the right to purchase in respect of each whole warrant ("**Warrants**") represented by this certificate or by a replacement certificate (in either case this "**Warrant Certificate**"), at any time up to 5:00 p.m. (Toronto time), on March 20, 2025 (the "**Expiry Time**") one fully paid and non-assessable common share ("**Common Shares**" and which term shall include any shares or other securities to be issued in addition thereto or in substitution or replacement therefor as provided herein) of A2Z Smart Technologies Corp. (the "**Corporation**"), a corporation organized under the *Business Corporations Act* (British Columbia), as constituted on the date hereof at a purchase price (the purchase price in effect from time to time being called the "**Exercise Price**") of CDN$ per Common Share, subject to adjustment as provided herein.

The Corporation agrees that the Common Shares purchased pursuant to the exercise of the Warrants shall be and be deemed to be issued to the Warrantholder as of the close of business on the date on which this Warrant Certificate shall have been surrendered and payment made for such Common Shares as aforesaid.

Nothing contained herein shall confer any right upon the Warrantholder to subscribe for or purchase any Common Shares at any time after the Expiry Time and from and after the Expiry Time the Warrants and all rights under this Warrant Certificate shall be void and of no value.

The above provisions are subject to the following:

**1.**  **<u>Exercise:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)  **<u>Cash Exercise:</u>** In the event that the Warrantholder desires to exercise the right to purchase
 Common Shares conferred hereby, the Warrantholder shall (a) complete to the extent possible
 in the manner indicated and execute a subscription form in the form attached as  **<u>Error! Reference source not found.</u>** to this Warrant Certificate, (b) surrender this Warrant
 Certificate to the Corporation in accordance with section ‎9 hereof, and (c) pay the
 amount payable on the exercise of such Warrants in respect of the Common Shares subscribed
 for by certified cheque, bank draft or money order in lawful money of Canada payable to the
 Corporation or by transmitting same day funds in lawful money of Canada by wire to such account
 as the Corporation shall direct the Warrantholder. Upon such surrender and payment as aforesaid,
 the Warrantholder shall be deemed for all purposes to be the holder of record of the number
 of Common Shares to be so issued and the Warrantholder shall be entitled to delivery of a
 certificate or certificates representing such Common Shares and the Corporation shall cause
 such certificate or certificates to be delivered to the Warrantholder at the address specified
 in the subscription form within five (5) business days after such surrender and payment as
 aforesaid. No fractional Common Shares will be issuable upon any exercise of the Warrants
 and the Warrantholder will not be entitled to any cash payment or compensation in lieu of
 a fractional Common Share.

**2.**  **<u>Partial Exercise:</u>** The Warrantholder may from time to time subscribe for and purchase any
 lesser number of Common Shares than the number of Common Shares expressed in this Warrant
 Certificate. In the event that the Warrantholder subscribes for and purchases any such lesser
 number of Common Shares prior to the Expiry Time, the Warrantholder shall be entitled to
 receive a replacement certificate representing the unexercised balance of the Warrants.

**3.**  **<u>Not a Shareholder:</u>** The holding of the Warrants shall not constitute the Warrantholder
 a shareholder of the Corporation nor entitle the Warrantholder to any right or interest in
 respect thereof except as expressly provided in this Warrant Certificate.

**4.**  **<u>Covenants, Representations and Warranties:</u>** The Corporation hereby represents and warrants that
 it is authorized to create and issue the Warrants and covenants and agrees that it will cause
 the Common Shares from time to time subscribed for and purchased in the manner provided in
 this Warrant Certificate and the certificate or certificates representing such Common Shares
 to be issued and that, at all times prior to the Expiry Time, it will reserve and there will
 remain unissued a sufficient number of Common Shares to satisfy the right of purchase provided
 for in this Warrant Certificate. The Corporation hereby further covenants and agrees that
 it will at its expense expeditiously use its best efforts to obtain the listing of such Common
 Shares (subject to issue or notice of issue) on each stock exchange or over-the-counter market
 on which the Common Shares may be listed on the date that the Warrantholder exercises its
 right to subscribe for and purchase Common Shares pursuant to the terms and conditions of
 this Warrant Certificate. All Common Shares that are issued upon the exercise of the right
 of purchase provided in this Warrant Certificate, upon payment therefor of the amount at
 which such Common Shares may be purchased pursuant to the provisions of this Warrant Certificate,
 shall be and be deemed to be fully paid and non- assessable shares and free from all taxes,
 liens and charges with respect to the issue thereof. The Corporation hereby represents and
 warrants that this Warrant Certificate is a valid and enforceable obligation of the Corporation,
 enforceable in accordance with the provisions of this Warrant Certificate.

**5.**  **<u>Anti-Dilution Protection:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Definitions</u>:
 For the purposes of this section ‎5, unless there is something in the subject matter
 or context inconsistent therewith, the words and terms defined below shall have the respective
 meanings specified therefor in this subsection ‎5(1):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Adjustment Period**" means the period commencing on the date of issue of the Warrants and ending
 at the Expiry Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Current Market Price**" means, at any date, the price per Common Share equal to the weighted
 average price at which the Common Shares have traded on the TSX Venture Exchange or, if the
 Common Shares are not then listed on the TSX Venture Exchange, on such other Canadian stock
 exchange as may be selected by the directors of the Corporation for such purpose or, if the
 Common Shares are not then listed on any Canadian stock exchange, in the over-the-counter
 market, during the period of any twenty (20) consecutive trading days ending not more than
 five (5) business days before such date; provided that the weighted average price shall be
 determined by dividing the aggregate sale price of all Common Shares sold on the said exchange
 or market, as the case may be, during such twenty (20) consecutive trading days by the total
 number of Common Shares so sold; and provided further that if the Common Shares are not then
 listed on any Canadian stock exchange or traded in the over-the-counter market, then the
 Current Market Price shall be determined by a firm of independent chartered accountants selected
 by the directors of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**director** "
 means a director of the Corporation for the time being and, unless otherwise specified herein,
 a reference to action "**by the directors**" means action by the directors
 of the Corporation as a board or, whenever empowered, action by any committee of the directors
 of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**trading day**" with respect to a stock exchange or over-the-counter market means a day on
 which such stock exchange or market is open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Adjustments</u>:
 The Exercise Price and the number of Common Shares issuable to the Warrantholder upon the
 exercise of the Warrants shall be subject to adjustment from time to time in the events and
 in the manner provided as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 at any time during the Adjustment Period the Corporation shall:

&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) fix
 a record date for the issue of, or issue, Common Shares to the holders of all or substantially
 all of the outstanding Common Shares by way of a stock dividend;

&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) fix
 a record date for the distribution to, or make a distribution to, the holders of all or substantially
 all of the outstanding Common Shares payable in Common Shares or securities exchangeable
 for or convertible into Common 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;(iii) subdivide
 the outstanding Common Shares into a greater number of Common Shares; 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;(iv) consolidate
 the outstanding Common Shares into a lesser number of Common Shares,

(any of such events in subclauses ‎5(2)(a)(i), ‎5(2)(a)(ii), ‎5(2)(a)(iii) and ‎5(2)(a)(iv) above being herein called a "**Common Share Reorganization**"), the Exercise Price shall be adjusted on the earlier of the record date on which holders of Common Shares are determined for the purposes of the Common Share Reorganization and the effective date of the Common Share Reorganization to the amount determined by multiplying the Exercise Price in effect immediately prior to such record date or effective date, as the case may be, by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. the
 numerator of which shall be the number of Common Shares outstanding on such record date or
 effective date, as the case may be, before giving effect to such Common Share Reorganization;
 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the
 denominator of which shall be the number of Common Shares which will be outstanding immediately
 after giving effect to such Common Share Reorganization (including in the case of a distribution
 of securities exchangeable for or convertible into Common Shares the number of Common Shares
 that would have been outstanding had such securities been exchanged for or converted into
 Common Shares on such date).

To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5(2)(a) as a result of the fixing by the Corporation of a record date for the distribution of securities exchangeable for or convertible into Common Shares, the Exercise Price shall be readjusted immediately after the expiry of any relevant exchange or conversion right to the Exercise Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right. Any Warrantholder who has not exercised his right to subscribe for and purchase Common Shares on or prior to the record date of such stock dividend or distribution or the effective date of such subdivision or consolidation, as the case may be, upon the exercise of such right thereafter shall be entitled to receive and shall accept in lieu of the number of Common Shares then subscribed for and purchased by such Warrantholder, at the Exercise Price determined in accordance with this clause 5(2)(a) the aggregate number of Common Shares that such Warrantholder would have been entitled to receive as a result of such Common Share Reorganization, if, on such record date or effective date, as the case may be, such Warrantholder had been the holder of record of the number of Common Shares so subscribed for and purchased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 at any time during the Adjustment Period the Corporation shall fix a record date for the
 issue or distribution to the holders of all or substantially all of the outstanding Common
 Shares of rights, options or warrants pursuant to which such holders are entitled, during
 a period expiring not more than 45 days after the record date for such issue (such period
 being the "**Rights Period** "), to subscribe for or purchase Common Shares
 or securities exchangeable for or convertible into Common Shares at a price per share to
 the holder (or in the case of securities exchangeable for or convertible into Common Shares,
 at an exchange or conversion price per share) at the date of issue of such securities of
 less than 95% of the Current Market Price on such record date (any of such events being called
 a "**Rights Offering** "), the Exercise Price shall be adjusted effective immediately
 after the record date for such Rights Offering to the amount determined by multiplying the
 Exercise Price in effect on such record date by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 numerator of which shall be the aggregate of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. the
 number of Common Shares outstanding on the record date for the Rights Offering, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the
 quotient determined by dividing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) either
 (a) the product of the number of Common Shares offered during the Rights Period pursuant
 to the Rights Offering and the price at which such Common Shares are offered, or, (b) the
 product of the exchange or conversion price of the securities so offered and the number of
 Common Shares for or into which the securities offered pursuant to the Rights Offering may
 be exchanged or converted, as the case may be, by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 Current Market Price as of the record date for the Rights Offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 denominator of which shall be the aggregate of the number of Common Shares outstanding on
 such record date and the number of Common Shares offered pursuant to the Rights Offering
 (including in the case of the issue or distribution of securities exchangeable for or convertible
 into Common Shares the number of Common Shares for or into which such securities may be exchanged
 or converted).

If by the terms of the rights, options, or warrants referred to in this clause 5(2)(b), there is more than one purchase, conversion or exchange price per Common Share, the aggregate price of the total number of additional Common Shares offered for subscription or purchase, or the aggregate conversion or exchange price of the convertible or exchangeable securities so offered, shall be calculated for purposes of the adjustment on the basis of the lowest purchase, conversion or exchange price per Common Share, as the case may be. Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5(2)(b) as a result of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants referred to in this clause 5(2)(b), the Exercise Price shall be readjusted immediately after the expiry of any relevant exchange, conversion or exercise right to the Exercise Price which would then be in effect if the fair market value had been determined on the basis of the number of Common Shares actually issued and remaining issuable immediately after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 at any time during the Adjustment Period the Corporation shall fix a record date for the
 issue or distribution to the holders of all or substantially all of the outstanding Common
 Shares of:

&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) shares
 of the Corporation of any class other than Common 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;(ii) rights,
 options or warrants to acquire Common Shares or securities exchangeable for or convertible
 into Common Shares (other than rights, options or warrants pursuant to which holders of Common
 Shares are entitled, during a period expiring not more than forty-five (45) days after the
 record date for such issue, to subscribe for or purchase Common Shares or securities exchangeable
 for or convertible into Common Shares at a price per share (or in the case of securities
 exchangeable for or convertible into Common Shares at an exchange or conversion price per
 share on the record date for the issue of such securities) of at least 95% of the Current
 Market Price on such record 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;(iii) evidences
 of indebtedness of the Corporation (for greater certainty, excluding a cash dividend in the
 ordinary course); 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;(iv) any
 property or assets of the Corporation;

and if such issue or distribution does not constitute a Common Share Reorganization or a Rights Offering (any of such non-excluded events being herein called a "**Special Distribution**"), the Exercise Price shall be adjusted effective immediately after the record date for the Special Distribution to the amount determined by multiplying the Exercise Price in effect on the record date for the Special Distribution by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. the
 numerator of which shall be the difference between

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 product of the number of Common Shares outstanding on such record date and the Current Market
 Price on such record date, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 fair value, as determined by the directors of the Corporation, to the holders of Common Shares
 of the shares, rights, options, warrants, evidences of indebtedness or property or assets
 to be issued or distributed in the Special Distribution, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the
 denominator of which shall be the product obtained by multiplying the number of Common Shares
 outstanding on such record date by the Current Market Price on such record date.

Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5(2)(c) as a result of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants to acquire Common Shares or securities exchangeable for or convertible into Common Shares referred to in this clause 5(2)(c), the Exercise Price shall be readjusted immediately after the expiry of any relevant exercise, exchange or conversion right to the amount which would then be in effect based upon the number of Common Shares issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 at any time during the Adjustment Period there shall occur:

&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) a
 reclassification or redesignation of the Common Shares, a change of the Common Shares into
 other shares or securities or any other Capital Reorganization involving the Common Shares
 other than a Common Share Reorganization;

&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) a
 consolidation, amalgamation or merger of the Corporation with or into another body corporate
 which results in a reclassification or redesignation of the Common Shares or a change of
 the Common Shares into other shares or 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;(iii) the
 transfer of the undertaking or assets of the Corporation as an entirety or substantially
 as an entirety to another corporation or entity;

(any of such events being called a "**Capital Reorganization**"), after the effective date of the Capital Reorganization the Warrantholder shall be entitled to receive, and shall accept, for the same aggregate consideration, upon exercise of the Warrants, in lieu of the number of Common Shares to which the Warrantholder was theretofor entitled upon the exercise of the Warrants, the kind and aggregate number of shares and other securities or property resulting from the Capital Reorganization which the Warrantholder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Warrantholder had been the registered holder of the number of Common Shares which the Warrantholders was theretofore entitled to purchase or receive upon the exercise of the Warrants. If necessary, as a result of any such Capital Reorganization, appropriate adjustments shall be made in the application of the provisions of this Warrant Certificate with respect to the rights and interests thereafter of the Warrantholder to the end that the provisions shall thereafter correspondingly be made applicable as nearly as may reasonably be possible in relation to any shares or other securities or property thereafter deliverable upon the exercise of the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 at any time during the Adjustment Period any adjustment or readjustment in the Exercise Price
 shall occur pursuant to the provisions of clause 5(2)(a), 5(2)(b) or 5(2)(c) of this Warrant
 Certificate, then the number of Common Shares purchasable upon the subsequent exercise of
 the Warrants shall be simultaneously adjusted or readjusted, as the case may be, by multiplying
 the number of Common Shares purchasable upon the exercise of the Warrants immediately prior
 to such adjustment or readjustment by a fraction which shall be the reciprocal of the fraction
 used in the adjustment or readjustment of the Exercise Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Rules</u>:
 The following rules and procedures shall be applicable to adjustments made pursuant to subsection
 ‎5(2) hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to the following clauses of this subsection ‎5(3), any adjustment made pursuant to subsection
 ‎5(2) hereof shall be made successively whenever an event referred to therein shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No
 adjustment in the Exercise Price shall be required unless such adjustment would result in
 a change of at least 1% in the then Exercise Price and no adjustment shall be made in the
 number of Common Shares purchasable or issuable on the exercise of the Warrants unless it
 would result in a change of at least one one- hundredth of a Common Share; provided, however,
 that any adjustments which except for the provision of this clause ‎5(3)(b) would otherwise
 have been required to be made shall be carried forward and taken into account in any subsequent
 adjustment. Notwithstanding any other provision of subsection ‎5(2) hereof, no adjustment
 of the Exercise Price shall be made which would result in an increase in the Exercise Price
 or a decrease in the number of Common Shares issuable upon the exercise of the Warrants (except
 in respect of the Common Share Reorganization described in subclause ‎5(2)(a)(iv) hereof
 or a Capital Reorganization described in subclause ‎5(2)(d)(ii) hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject
 to the prior written consent of the TSX Venture Exchange, no adjustment in the Exercise Price
 or in the number or kind of securities purchasable upon the exercise of the Warrants shall
 be made in respect of any event described in section ‎5 hereof if the Warrantholder is
 entitled to participate in such event on the same terms *mutatis mutandis* as if the
 Warrantholder had exercised the Warrants prior to or on the record date or effective date,
 as the case may be, of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No
 adjustment in the Exercise Price or in the number of Common Shares purchasable upon the exercise
 of the Warrants shall be made pursuant to subsection ‎5(2) hereof in respect of the issue
 from time to time of Common Shares pursuant to this Warrant Certificate or pursuant to any
 stock option, stock purchase or stock bonus plan in effect from time to time for directors,
 officers or employees of the Corporation and/or any subsidiary of the Corporation and any
 such issue, and any grant of options in connection therewith, shall be deemed not to be a
 Common Share Reorganization, a Rights Offering nor any other event described in subsection
 ‎5(2) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 the Corporation takes any action affecting the Common Shares to which the foregoing provisions
 of this section ‎5(2), in the opinion of the board of directors of the Corporation, acting
 in good faith, are not strictly applicable, or if strictly applicable would not fairly adjust
 the rights of the Warrantholder against dilution in accordance with the intent and purposes
 hereof, or would otherwise materially affect the rights of the Warrantholder hereunder, then
 the Corporation shall, subject to the approval of the TSX Venture Exchange (or such other
 stock exchange or quotation system on which the Common Shares are then listed and posted
 (or quoted) for trading, as applicable), execute and deliver to the Warrantholder an amendment
 hereto providing for an adjustment in the application of such provisions so as to adjust
 such rights as aforesaid in such manner as the board of directors of the Corporation may
 determine to be equitable in the circumstances, acting in good faith. The failure of the
 taking of action by the board of directors of the Corporation to so provide for any adjustment
 on or prior to the effective date of any action or occurrence giving rise to such state of
 facts will be conclusive evidence that the board of directors has determined that it is equitable
 to make no adjustment in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If
 the Corporation shall set a record date to determine holders of Common Shares for the purpose
 of entitling such holders to receive any dividend or distribution or any subscription or
 purchase rights and shall, thereafter and before the distribution to such holders of any
 such dividend, distribution or subscription or purchase rights, legally abandon its plan
 to pay or deliver such dividend, distribution or subscription or purchase rights, then no
 adjustment in the Exercise Price or the number of Common Shares purchasable upon exercise
 of the Warrant shall be required by reason of the setting of such record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In
 any case in which this Warrant Certificate shall require that an adjustment shall become
 effective immediately after a record date for an event referred to in subsection ‎5(2)
 hereof, the Corporation may defer, until the occurrence of such event:

&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) issuing
 to the Warrantholder, to the extent that the Warrants are exercised after such record date
 and before the occurrence of such event, the additional Common Shares or other securities
 issuable upon such exercise by reason of the adjustment required by such event; 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;(ii) delivering
 to the Warrantholder any distribution declared with respect to such additional Common Shares
 or other securities after such record date and before such event;

provided, however, that the Corporation shall deliver to the Warrantholder an appropriate instrument evidencing the right of the Warrantholder upon the occurrence of the event requiring the adjustment, to an adjustment in the Exercise Price or the number of Common Shares purchasable upon the exercise of the Warrants and to such distribution declared with respect to any such additional Common Shares issuable on the exercise of the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In
 the absence of a resolution of the directors fixing a record date for a Rights Offering,
 the Corporation shall be deemed to have fixed as the record date therefor the date of the
 issue of the rights, options or warrants issued pursuant to the Rights Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Corporation will maintain a register of holders of Warrants at its principal office. The
 Corporation may deem and treat the registered holder of any Warrant Certificate as the absolute
 owner of the Warrants represented thereby for all purposes, and the Corporation shall not
 be affected by any notice or knowledge to the contrary except where the Corporation is required
 to take notice by statute or by order of a court of competent jurisdiction. A Warrantholder
 shall be entitled to the rights evidenced by such Warrant free from all equities or rights
 of set-off or counterclaim between the Corporation and the original or any intermediate holder
 thereof and all persons may act accordingly and the receipt by any such Warrantholder of
 the Common Shares purchasable pursuant to such Warrant shall be a good discharge to the Corporation
 for the same and the Corporation shall not be bound to inquire into the title of any such
 Warrantholder except where the Corporation is required to take notice by statute or by order
 of a court of competent jurisdiction.

The registered holders of Warrants shall have the power from time to time by an extraordinary resolution (as hereinafter defined):

&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
 sanction any modification, abrogation, alteration or compromise of the rights of the registered
 holders of Warrants against the Corporation which shall be agreed to by the Corporation;
 and/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;(ii) to
 assent to any modification of or change in or omission from the provisions contained herein
 or in any instrument ancillary or supplemental hereto which shall be agreed to by the Corporation;
 and/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;(iii) to
 restrain any registered holder of a Warrant from taking or instituting any suit or proceedings
 against the Corporation for the enforcement of any of the covenants on the part of the Corporation
 conferred upon the registered holders of Warrants by the terms of the Warrants.

Any such extraordinary resolution as aforesaid shall be binding upon all the registered holders of Warrants whether or not assenting in writing to any such extraordinary resolution, and each registered holder of any of the Warrants shall be bound to give effect thereto accordingly. Such extraordinary resolution shall, where applicable, be binding on the Corporation which shall give effect thereto accordingly.

The Corporation shall forthwith upon receipt of an extraordinary resolution provide notice to all registered holders of Warrants of the date and text of such resolution. The registered holders of Warrants assenting to an extraordinary resolution agree to provide the Corporation forthwith with a copy of any extraordinary resolution passed.

The expression "**extraordinary resolution**" when used herein shall mean a resolution assented to in writing, in one or more counterparts, by the registered holders of Warrants calling in the aggregate for not less than seventy-five per cent (75%) of the aggregate number of Common Shares called for by all of the Warrants which are, at the applicable time, outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) If
 a dispute shall at any time arise with respect to adjustments of the Exercise Price or the
 number of Common Shares or other securities purchasable upon the exercise of the Warrants,
 such disputes shall be conclusively determined by the auditors of the Corporation or if they
 are unable or unwilling to act, by such other firm of independent chartered accountants as
 may be selected by the directors and any such determination shall be conclusive evidence
 of the correctness of any adjustment made pursuant to subsection ‎5(2) hereof and shall
 be binding upon the Corporation and the Warrantholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) As
 a condition precedent to the taking of any action which would require an adjustment pursuant
 to subsection ‎5(2) hereof, including the Exercise Price and the number or class of Common
 Shares or other securities which are to be received upon the exercise thereof, the Corporation
 shall take any action which may, in the opinion of counsel to the Corporation, be necessary
 in order that the Corporation may validly and legally issue as fully paid and non-assessable
 shares all of the Common Shares or other securities which the Warrantholder is entitled to
 receive in accordance with the provisions of this Warrant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Notice</u>:
 Within five (5) days of the effective date of any event that requires an adjustment in any
 of the rights of the Warrantholder under this Warrant Certificate, including the Exercise
 Price or the number of Common Shares that may be purchased under this Warrant Certificate,
 the Corporation shall deliver to the Warrantholder written notice specifying the particulars
 of such event and, if determinable, the required adjustment and the calculation of such adjustment.
 In case any adjustment for which a notice in this subsection ‎5(4) has been given is
 not then determinable, the Corporation shall promptly after such adjustment is determinable
 deliver to the Warrantholder written notice providing the calculation of such adjustment.
 The Corporation hereby covenants and agrees that the register of transfers and share transfer
 books for the Common Shares and Warrants will be open, and that the Corporation will not
 take any action which might deprive the Warrantholder of the opportunity of exercising the
 rights of subscription contained in this Warrant Certificate, during such five (5) day period.

**6.**  **<u>Further Assurances:</u>** The Corporation hereby covenants and agrees that it will do, execute,
 acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, all and
 every such other act, deed and assurance as the Warrantholder shall reasonably require for
 the better accomplishing and effectuating of the intentions and provisions of this Warrant
 Certificate.

**7.**  **<u>Time of Essence:</u>** Time shall be of the essence of this Warrant Certificate.

**8.**  **<u>Governing Laws:</u>** This Warrant Certificate shall be construed in accordance with the laws of
 the Province of Ontario and the federal laws of Canada applicable therein.

**9.**  **<u>Notices:</u>** All notices or other communications to be given under this Warrant Certificate shall
 be delivered by hand or by email and, if delivered by hand, shall be deemed to have been
 given on the delivery date and, if sent by email, on the date of transmission if sent before
 5:00 p.m. on a business day or, if such day is not a business day, on the first business
 day following the date of transmission.

Notices to the Corporation shall be addressed to:

A2Z Smart Technologies Corp.<br> 1600 - 609 Granville Street

Vancouver, British Columbia

V7Y 1C3

Attention: Gadi Levin<br> Email: gadi@a2zas.com

Notices to the Warrantholder shall be addressed to the address of the Warrantholder set out on the face page of this Warrant Certificate.

The Corporation and the Warrantholder may change its address for service by notice in writing to the other of them specifying its new address for service under this Warrant Certificate.

**10.**  **<u>Legends on Common Shares:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any
 certificate representing Common Shares issued upon the exercise of the Warrants prior to
 the date which is four months and one (1) day after the date hereof will bear the following
 legends:

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE JULY 21, 2023"

and, if issued prior to the date which is four months and one day after the date hereof, may also bear the following legend:

"WITHOUT PRIOR WRITTEN APPROVAL OF TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL JULY 21, 2023";

provided that at any time subsequent to the date which is four months and one day after the date hereof any certificate representing such Common Shares may be exchanged for a certificate bearing no such legends. The Corporation shall use the best efforts thereof to cause the registrar and transfer agent to deliver the certificate representing such Common Shares within three (3) business days after receipt of the legended certificate or certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any
 certificate representing Common Shares issued upon the exercise of the Warrant and issuable
 to a person in the United States or a U.S. Person (as defined in Regulation S under the United
 States Securities Act of 1933, as amended (the "**U.S. Securities Act** "))
 will be required to bear the following legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA*.*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any
 certificate representing unexercised Warrants and issuable to a person in the United States
 or a U.S. Person (as defined in Regulation S under the U.S. Securities Act) will be required
 to bear the following legends:

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THESE WARRANTS AND THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATIONS UNDER THE U.S. SECURITIES ACT.

**11.**  **<u>Lost Certificate:</u>** If this Warrant Certificate or any replacement hereof becomes stolen,
 lost, mutilated or destroyed, the Corporation shall, on such terms as it may in its discretion
 impose, acting reasonably, issue and deliver a new certificate, in form identical hereto
 but with appropriate changes, representing any unexercised portion of the subscription rights
 represented hereby to replace the certificate so stolen, lost, mutilated or destroyed.

**12.**  **<u>Language:</u>** The parties hereto acknowledge and confirm that they have requested that this Warrant
 Certificate as well as all notices and other documents contemplated hereby be drawn up in
 the English language. Les parties aux présentes reconnaissent et confirment qu'elles
 ont exigé que la présente convention ainsi que tous les avis et documents qui
 s'y rattachent soient rédigés en langue anglaise.

**13.**  **<u>Transfer:</u>** The Warrants are transferable and the term "Warrantholder" shall mean
 and include any successor, transferee or assignee of the current or any future Warrantholder.
 The Warrants may by transferred by the Warrantholder completing and delivering to the Corporation
 a completed <u>Schedule A</u>.

**14.**  **<u>Ranking:</u>** All Warrants shall rank *pari passu*, whatever may be the actual date of issue
 of the same.

**15.**  **<u>Successors and Assigns:</u>** This Warrant Certificate shall enure to the benefit of the Warrantholder
 and the successors thereof and shall be binding upon the Corporation and the successors and
 assignees thereof.

**16.**  **<u>Counterpart Signatures:</u>** This Warrant Certificate may be executed in any number of counterparts
 and may be executed and delivered by facsimile, all of which when taken together shall be
 deemed to be one and the same document.

IN WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be signed by an authorized officer as of the day of March, 2023.

---

| | |
|:---|:---|
| **A2Z SMART TECHNOLOGIES CORP.** | **A2Z SMART TECHNOLOGIES CORP.** |
| Per: | |
| Name:<br> Title: | Gadi Levin<br> Chief Financial Officer<br>|

---

**SCHEDULE A**

**WARRANT EXERCISE FORM<br>** 

<br> TO: **A2Z SMART TECHNOLOGIES CORP.**

The undersigned hereby subscribes for ____________ common shares ("**Common Shares**") of A2Z Smart Technologies Corp. (the "**Corporation**") (or such other number of Common Shares or other securities to which such subscription entitles the undersigned in lieu thereof or in addition thereto) pursuant to the provisions of the warrant certificate (the "**Warrant Certificate**") dated as of the 20th day of March, 2023 issued by the Corporation to the Warrantholder (as defined in the Warrant Certificate) at a purchase price of US$ per Common Share if exercised on or before 5:00 p.m. on March 20, 2025 (or at such other purchase price as may then be in effect under the provisions of the Warrant Certificate) and on and subject to the other terms and conditions specified in the Warrant and encloses herewith a cheque, bank draft or money order or has transmitted good same day funds by wire or other similar transfer in lawful money of Canada payable to or to the order of the Corporation in payment of the subscription price.

The undersigned represents, warrants and certifies as follows (one of the following must be checked):

---

| | |
|:---|:---|
| A. ☐ | the undersigned holder at the time of exercise of the Warrants is not in the United States, is not a "U.S. person" and is not exercising the Warrants on behalf of, or for the account or benefit of a U.S. person or a person in the United States, did not execute or deliver this exercise form in the United States and delivery of the underlying Common Shares will not be to an address in the United States; OR |

---

B. ☐ the undersigned holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 (A) a U.S. person, (B) present in the United States, or (C) is acting on behalf of either
 a U.S. person or a person in the United States, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (a)
 is the original U.S. purchaser who purchased units from the Corporation of which the Warrants
 formed a constituent part pursuant to an executed Subscription Agreement including the U.S.
 Accredited Investor Certificate attached to the Subscription Agreement as Schedule B thereto
 in connection with its purchase of units, (b) is exercising the Warrants for its own account
 or for the account of a disclosed principal that was named in the Subscription Agreement
 pursuant to which it purchased such units, and (c) is, and such disclosed principal, if any,
 is an "accredited investor" as defined in Rule 501(a) of Regulation D under the
 U.S. Securities Act at the time of exercise of these Warrants and the representations and
 warranties of the holder made in the original Subscription Agreement including the U.S. Accredited
 Investor Certificate remain true and correct as of the date of exercise of these Warrants;
 OR

C. ☐ the undersigned holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 a U.S. Accredited Investor that is also a qualified institutional buyer as defined in Rule
 144A under the U.S. Securities Act (a "**QIB** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (a)
 is the original U.S. purchaser who purchased units from the Corporation of which the Warrants
 formed a constituent part pursuant to an executed Subscription Agreement including the Qualified
 Institutional Buyer Letter attached to the Subscription Agreement as Schedule C thereto in
 connection with its purchase of units, (b) is exercising the Warrants for its own account
 or for the account of a disclosed principal that was named in the Subscription Agreement
 pursuant to which it purchased such units, and (c) is, and such disclosed principal, if any,
 is a "qualified institutional buyer" as defined in Rule 144A under the U.S. Securities
 Act at the time of exercise of these Warrants and the representations and warranties of the
 holder made in the original Subscription Agreement including the Qualified Institutional
 Buyer Letter remain true and correct as of the date of exercise of these Warrants; OR

D. ☐ the undersigned holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 (A) a U.S. person, (B) present in the United States, or (C) is acting on behalf of either
 a U.S. person or a person in the United States; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 undersigned holder has delivered to the Corporation and the Corporation's transfer
 agent an opinion of counsel (which will not be sufficient unless it is in form and substance
 satisfactory to the Corporation) or such other evidence satisfactory to the Corporation to
 the effect that with respect to the securities to be delivered upon exercise of this Warrant,
 the issuance of such securities has been registered under the U.S. Securities Act and applicable
 state securities laws, or an exemption from the registration requirements of the U.S. Securities
 Act and applicable state securities laws is available..

"**United States**" and "**U.S. person**" are as defined in Regulation S under the U.S. Securities Act.

**Note: Certificates representing Common Shares will not be registered or delivered to an address in the United States unless Box (B), (C) or (D) above is checked.**

The undersigned hereby directs that the Common Shares subscribed for be registered and delivered as follows:

---

| | | |
|:---|:---|:---|
| **Name in Full** | **Address (Include Postal Code)** | **Number of Common Shares** |

---

In the absence of instructions to the contrary, the securities or other property will be issued in the name of or to the holder hereof and will be sent by first class mail to the last address of the holder appearing on the register maintained for the Warrants.

---

| | |
|:---|:---|
| DATED the __________ day of ________________, 20___. |  |
|  | (Signature of Warrantholder) |
|  | Print full name |
|  | Print full address |

---

**Instructions:**

1. If
 Box (D) is checked, any opinion tendered must be from counsel of recognized standing in form
 and substance reasonably satisfactory to the Corporation. Holders planning to deliver an
 opinion of counsel in connection with the exercise of the Warrants should contact the Corporation
 in advance to determine whether any opinions tendered will be acceptable to the Corporation.

2. The
 registered holder of a Warrant may exercise its right to convert the Warrant into Shares
 by completing and surrendering this Warrant Exercise Form and the ORIGINAL Warrant Certificate
 representing the Warrants being converted to the Corporation, together with the aggregate
 amount of the exercise price for the Shares, as provided for in the Warrant Certificate.

3. If
 this Warrant Exercise Form indicates that Shares are to be issued to a person or persons
 other than the registered holder of the Warrant to be converted: (i) the signature of the
 registered holder on this Warrant Exercise Form must be medallion guaranteed by an authorized
 officer of a chartered bank, trust company or an investment dealer who is a member of a recognized
 stock exchange, and (ii) the registered holder must pay to the Corporation all applicable
 taxes and other duties.

4. If
 this Warrant Exercise Form is signed by a trustee, executor, administrator, custodian, guardian,
 attorney, officer of a corporation or any other person acting in a fiduciary or representative
 capacity, this Warrant Exercise Form must be accompanied by evidence of authority to sign
 satisfactory to the Corporation.

## Exhibit 4.11

**Exhibit 4.11**

**A2Z SMART TECHNOLOGIES CORP.**

**OFFERING OF UNITS**

**COMPRISED OF COMMON SHARES AND WARRANTS**

**FORM OF** **SUBSCRIPTION AGREEMENT**

**(<u>Canadian, U.S. and International Purchasers</u>)**

**October 2022**

---

| |
|:---|
| &nbsp;&nbsp;<br> **A2Z SMART TECHNOLOGIES CORP.**<br>**INSTRUCTIONS FOR EXECUTION OF SUBSCRIPTION AGREEMENT FOR UNITS** <br> **COMPRISED OF COMMON SHARES AND WARRANTS**<br>**<u>THIS SUBSCRIPTION AGREEMENT IS IRREVOCABLE</u>**<br>**The following items in this Subscription Agreement have been completed and executed (please initial each applicable box):** |
| &nbsp;&nbsp;**<u>All Purchasers</u> (as defined herein)** |
| &nbsp;&nbsp;The sections under the heading **"Subscription and Purchaser Information"** on pages 2 and 3 of this Subscription Agreement and the **"Accredited Investor Certificate"** and, if an individual, the "**Form 45-106F9**" both attached as Schedule "A", (if the Purchaser resides outside of the United States (as defined herein));<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br> **<u>OR</u>** |
| &nbsp;&nbsp;If you are a a U.S. Purchaser (as defined herein) or are purchasing for the account or benefit of a U.S. Purchaser: (i) and a U.S. Accredited Investor (as defined herein), complete the **U.S. Accredited Investor Certificate** attached as Schedule "B"; or (ii) and a Qualified Institutional Buyer (as defined herein), complete the "**Qualified Institutional Buyer Letter**" attached as Schedule "C". |
| &nbsp;&nbsp;<br> **<u>All Purchasers that are NOT INDIVIDUALS and that do not have a current TSX Venture Exchange Form 4C on file with the TSX Venture Exchange and will hold more than 5% of the outstanding Common Shares (as defined herein) following the completion of the Offering (as defined herein), or are a member of Pro Group (as defined herein)</u>** |
| &nbsp;&nbsp;Schedule "D" TSX Venture Exchange Form 4C - Corporate Placee Registration Form |
| &nbsp;&nbsp; <br> A completed and executed copy of this Subscription Agreement, including the items required to be completed as set out above, should be delivered no later than **4:00 p.m. (Toronto time) on October 25, 2022** to:<br>**Email: gadi@a2zas.com**<br> **Attention: Gadi Levin**<br>The aggregate Subscription Amount (as defined herein) payable by the Purchaser is payable, at the option of A2Z Smart Technologies Corp., in either Canadian dollars, United States dollars, or New Israeli Shekels, to A2Z Smart Technologies Corp., by wire transfer.<br>**THE PURCHASER OR THE BENEFICIAL PURCHASER, IF ANY, FOR WHOM THE PURCHASER IS ACTING AS TRUSTEE OR AGENT, FULLY UNDERSTANDS THAT THE SECURITIES PURCHASED HEREUNDER HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION. ANY OF THESE SECURITIES MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES, CANADA OR ANY OTHER JURISDICTION EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, APPLICABLE REGISTRATION OR PROSPECTUS REQUIREMENTS.** |

---

---

| | |
|:---|:---|
| **PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT - UNITS** | &nbsp;&nbsp;**Subscription**<br>**No.**<br>|

---

---

| | |
|:---|:---|
| **TO:** | **A2Z Smart Technologies Corp. (the "Corporation")** |

---

The undersigned (the "**Purchaser**"), on its own behalf, and, if applicable, on behalf of a principal for whom it is acting hereunder, hereby irrevocably subscribes for and agrees to purchase from the Corporation the number of units of the Corporation (each a "**Unit**") set forth below, each Unit comprised of one common share in the capital of the Corporation (each a "**Common Share**") and one half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "**Warrant**") with each Warrant exercisable into one additional Common Share (a "**Warrant Share**" and, collectively with the Common Shares and Warrants, the "**Securities**") at a price of CAD$(US$) for a period of 24 months from the Closing Date (as defined herein), for the aggregate subscription price set forth below, representing a subscription price of US$(CAD$) per Unit (the "**Subscription Price**"). This subscription agreement plus the attached terms and conditions (the "**Terms and Conditions**"), each completed and executed Accredited Investor Certificate, U.S. Accredited Investor Certificate or Qualified Institutional Buyer Letter, as applicable, and the schedules and appendices attached hereto and thereto, are collectively referred to as the *"***Subscription Agreement***".* The Purchaser agrees to be bound by the Terms and Conditions including without limitation the terms, representations, warranties and covenants addressed to the Corporation set forth in the applicable schedules attached thereto and agrees that the Corporation may fully rely upon the covenants, representations and warranties contained in this Subscription Agreement. All references herein to "CAD$" are to **<u>Canadian</u>** dollars and "US$" is to United States dollars.

**<u>Please print</u>** all information (other than signatures), as applicable, in the space provided below.

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;**Aggregate Subscription Price (the "Subscription Amount"):** |
| &nbsp;&nbsp;(Name of Purchaser - please print) |  |
| &nbsp;&nbsp;By: | &nbsp;&nbsp;___________**(please denote currency)** |
| &nbsp;&nbsp;Authorized Signature |  |
|  | &nbsp;&nbsp;**Number of Units:** ___________ |
| &nbsp;&nbsp;(Official Capacity or Title – please print) |  |
|  | &nbsp;&nbsp;(Subscription Amount per Unit / (CAD$■ US$■)) |
| &nbsp;&nbsp;Please print name of individual whose signature appears above if different than the name of the Purchaser. | &nbsp;&nbsp;**If the person signing this subscription is not purchasing, nor deemed by applicable securities regulation to be purchasing, as principal and is signing as agent for one or more principals, complete the following for each such principal (attach additional pages if required):** |
| &nbsp;&nbsp;(Address of Residence) |  |
|  | &nbsp;&nbsp;Name of Principal) |
| &nbsp;&nbsp;(Purchaser's E-mail) | &nbsp;&nbsp;(Address of Residence) |
| &nbsp;&nbsp;(Purchaser's Telephone No.) | &nbsp;&nbsp;(Principal's E-mail) |
|  | &nbsp;&nbsp;(Principal's Telephone No.) |
| &nbsp;&nbsp;**Registration Instructions:** | &nbsp;&nbsp;**Delivery Instructions:**<br>|
| &nbsp;&nbsp;As above ☐ or | &nbsp;&nbsp;Same as Purchaser details above ☐ or<br>|
| &nbsp;&nbsp; ________________ |  |
| &nbsp;&nbsp;(Name – please print) | &nbsp;&nbsp;(Contact Name – please print)<br>|
| &nbsp;&nbsp;(Account reference, if applicable) | &nbsp;&nbsp;(Account reference, if applicable)<br>|
| &nbsp;&nbsp;(Address) | &nbsp;&nbsp;(Address)<br>|
|  | &nbsp;&nbsp;(Telephone No.) |

---

**<u>Present Ownership of Common Shares</u>**

The Purchaser either ***[initial appropriate box]***:

☐ owns directly or indirectly, or exercises control or direction over, no Common Shares or securities convertible into Common Shares; or

☐ owns directly or indirectly, or exercises control or direction over, ____________ Common Shares and ____________ convertible securities entitling the holder thereof to acquire an additional ____________ Common Shares.

**<u>Insider Status</u>**

The Purchaser either ***[initial appropriate box]***:

☐ is an "Insider" of the Corporation as defined in the *Securities Act* (Ontario), namely "Insider" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 director or officer of the administrator of Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 director or officer of a person or company that is itself an insider or subsidiary of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 person or company that has:

&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) beneficial ownership of, or control or direction over, directly or indirectly, securities of the Corporation carrying more than 10 per cent of the voting rights attached to all the Corporation's outstanding voting securities, excluding, for the purpose of the calculation of the percentage held, any securities held by the person or company as underwriter in the course of a distribution; 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;(ii) a combination of beneficial ownership of, and control or direction over, directly or indirectly, securities of the Corporation carrying more than 10 per cent of the voting rights attached to all the Corporation's outstanding voting securities, excluding, for the purpose of the calculation of the percentage held, any securities held by the person or company as underwriter in the course of a distribution; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 person or company designated as an insider of the Corporation in an order.

☐ is not an "Insider" of the Corporation.

**<u>Member of "Pro Group"</u>**

The Purchaser either ***[initial appropriate box]***:

☐ is a Member of the "Pro Group" as defined in the TSX Venture Exchange Corporate Finance Manual, namely "Pro Group" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Subject
 to subparagraphs (2), (3) and (4), "Pro Group" shall include, either individually or as a group:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 member (i.e. a member of the TSX Venture Exchange under the TSX Venture Exchange requirements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) employees
 of the member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) partners,
 officers and directors of the member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) affiliates
 of the member; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) associates
 of any parties referred to in subparagraphs (a) through (d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 TSX Venture Exchange may, in its discretion, include a person or party in the Pro Group for the purposes of a particular calculation
 where the TSX Venture Exchange determines that the person is not acting at arm's length to the member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The
 TSX Venture Exchange may, in its discretion, exclude a person from the Pro Group for the purposes of a particular calculation where
 the TSX Venture Exchange determines that the person is acting at arm's length to the member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 TSX Venture Exchange may deem a person who would otherwise be included in the Pro Group pursuant to subparagraph (1) to be excluded
 from the Pro Group where the TSX Venture Exchange determines that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 person is an affiliate or associate of the member acting at arm's length of the member;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 associate or affiliate has a separate corporate and reporting structure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there
 are sufficient controls on information flowing between the member and the associate or affiliate; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 member maintains a list of such excluded persons; or

☐ is not a member of the Pro Group.

**THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK**

**A2Z Smart Technologies Corp.,** accepts the subscription set forth above this _____ day of ______________, 2022.

  <br> Authorized Signatory

**TERMS AND CONDITIONS**

**1. <u>Subscription</u>**

The Purchaser hereby irrevocably subscribes for and agrees to purchase from the Corporation the number of Units set out on page 2 hereof at the Subscription Price, all on the terms and subject to the conditions set out in this Subscription Agreement (the "**Offering**"), each Unit comprised of one Common Share and one half of one Warrant. Each whole Warrant will entitle the holder thereof to purchase one Warrant Share for a period of 24 months from the Closing Date at an exercise price of CAD$(US$).

The Warrants will be governed pursuant to the terms of a warrant certificate (the "**Warrant Certificate**") to be entered into between the Corporation and each Purchaser in connection with the issuance of the Warrants.

The Purchaser acknowledges that this subscription forms part of a larger offering by the Corporation of up to Units.

In this Subscription Agreement:

(a) "**1933 Act**" means the United States Securities Act of 1933, as amended;

(b) "**Business Day**" as used in this Subscription Agreement shall mean a day on which Canadian chartered banks are open for the transaction
 of regular business in the City of Toronto, Ontario, Canada;

(c) "**Qualified Institutional Buyer**" means a "qualified institutional buyer" as defined under Rule 144A of the 1933 Act that
 is also a U.S. Accredited Investor;

(d) "**Regulation D**" means Regulation S under the 1933 Act;

(e) "**Regulation S**" means Regulation S under the 1933 Act;

(f) "**United States**" or "**U.S.**" means the United States of America, its territories and possessions, any state of
 the United States and the District of Columbia;

(g) "**U.S. Accredited Investor**" means an "accredited investor" within the meaning of Rule 501(a) of Regulation D;

(h) "**U.S. Person**" has the meaning ascribed to it in Rule 902(k) of Regulation S, which definition includes a natural person resident
 in the United States, a partnership or corporation organized or incorporated under the laws of the United States, an estate of which
 any executor or administrator is a U.S. Person, a trust of which any trustee is a U.S. Person, a non-discretionary account or similar
 account (other than an estate or trust) held by a dealer or other fiduciary for the benefit of a U.S. Person, a 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 a partnership or corporation if (i) organized or incorporated under the laws of any foreign jurisdiction,
 and (ii) formed by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless
 it is organized or incorporated, and owned, by "accredited investors" under Rule 501(a) of Regulation D who are not natural
 persons, estates or trusts; and

(i) "**U.S. Purchaser**" means a Purchaser of Units who was, at the time of purchase (a) a person in the United States, (b) a U.S. Person,
 (c) any person purchasing that purchased Units on behalf of, or for the account or benefit of, a U.S. Person or any person in the
 United States, (d) any person who receives or received an offer to acquire such Units while in the United States, or (e) any person
 who was in the United States at the time such person's buy order was made or this Subscription Agreement pursuant to which
 such Units were acquired was executed or delivered.

**2. <u>Closing</u>**

2.1 The
 Offering may be completed in one or more closings (each, a "**Closing**") at the offices of the Corporation's
 legal counsel, at such times and dates (each, a "**Closing Date**") as may be determined by the Corporation in its
 sole discretion.

2.2 The
 Purchaser acknowledges that the Closing, and the Corporation's obligation to sell the Units to the Purchaser is subject to,
 among other things, the satisfaction of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Purchaser completing, executing and delivering to the Corporation as set forth on page 2 of this Subscription Agreement, together
 with all other documents required by applicable securities laws:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 duly completed and executed Schedule "A" – *Accredited Investor Certificate* (unless the Purchaser is a U.S.
 Purchaser); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 duly completed and executed Schedule "B" – *U.S. Accredited Investor Certificate*, if the Purchaser is a U.S.
 Purchaser that is a U.S. Accredited Investor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 duly completed and executed Schedule "C" – *Qualified Institutional Buyer Letter*, if the Purchaser is U.S.
 Purchaser that is a Qualified Institutional Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if
 applicable, Schedule "D" – *TSX Venture Exchange Form 4C – Corporate Placee Registration Form*;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Purchaser delivering the Subscription Amount to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Corporation accepting, in whole or in part, this Subscription Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) receipt
 of the TSX Venture Exchange (the "**Exchange**") conditional approval for the listing of the Common Shares and Warrant
 Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 filing of a listing of additional shares with the Nasdaq Stock Market LLC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 issuance of the Securities being exempt from the requirement to file a prospectus or registration statement and the requirement to
 prepare and deliver an offering memorandum or similar document under any applicable statute relating to the sale of the Securities
 or upon the issuance of such orders, consents or approvals as may be required to permit such sale without the requirement of filing
 a prospectus or registration statement or delivering an offering memorandum or similar document; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the
 representations, warranties, covenants and certifications of the Purchaser addressed to the Corporation in this Subscription Agreement,
 including in any appendices hereto or other document delivered to the Corporation in connection with the Purchaser's subscription,
 being accurate, true and correct at the Closing.

2.3 If,
 prior to the Closing Date, the terms and conditions contained in this Subscription Agreement (other than delivery by the Corporation
 to the Purchaser of the Common Shares and Warrants in electronic or certificated form) have not been complied with to the satisfaction
 of the Corporation, or waived by the Corporation (as applicable), the Corporation and the Purchaser will have no further obligations
 under this Subscription Agreement. If the Closing does not occur, the Corporation shall return this Subscription Agreement and any
 funds, certified cheques and bank drafts delivered by the Purchaser to the Corporation representing the Subscription Amount for the
 Units, without interest or deduction to the Purchaser.

2.4 The
 Purchaser acknowledges and agrees that the Corporation reserves the right, in its absolute discretion, to reject this subscription,
 in whole or in part, at any time prior to the time of Closing. If this subscription is rejected in whole, any cheques or other forms
 of payment delivered to the Corporation representing the Subscription Amount will be promptly returned to the Purchaser without interest
 or deduction. If this subscription is accepted only in part, a cheque representing any refund of the Subscription Amount for that
 portion of the subscription for the Units which is not accepted will be promptly delivered to the Purchaser without interest or deduction.

2.5 Notwithstanding
 any terms set out herein, each Common Share and Warrant underlying a Unit originally issued to a U.S. Purchaser that is a U.S. Accredited
 Investor must be issued in individually certificated form only and bear the applicable legend set forth in Schedule "B".

**3. <u>Purchaser's Representations, Warranties and Covenants</u>**

The Purchaser (on its own behalf and, if applicable, on behalf of each beneficial purchaser for whom the Purchaser is contracting hereunder) represents and warrants to, and covenants with, the Corporation (and acknowledges that the Corporation is relying on them), which representations, warranties and covenants shall survive the Closing, that as at the execution date of this Subscription Agreement and the Closing Date:

3.1 The
 Purchaser confirms that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 has such knowledge in financial and business affairs as to be capable of evaluating the merits and risks of its investment in the
 Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 is capable of assessing the merits and risks (including the potential loss of its entire investment) of the proposed investment in
 the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 is aware of the characteristics of the Securities and understands the risks relating to an investment therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it
 is able to bear the economic risk of loss of its investment in the Securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Securities are being purchased for investment purposes and not for a view to distribution within the meaning of the securities laws
 of the United States.

3.2 The
 Purchaser acknowledges that it:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has
 conducted its own investigation with respect to the Corporation, its business and the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has
 received or otherwise had access to all information regarding the Corporation that it believes is necessary or appropriate in connection
 with the purchase of the Units, including financial and other information which has been publicly filed by the Corporation with the
 relevant securities commissions or similar regulatory authorities in Canada on the System for Electronic Document Analysis and Retrieval
 (SEDAR), an electronic database that is accessible at the following website address: <u>www.sedar.com</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has
 made its own assessment and has satisfied itself concerning the relevant tax, legal, currency and other considerations relevant to
 its investment in the Units; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has
 such knowledge and experience in financial and business matters in order to evaluate the merits and risks of its prospective investment
 in the Units.

3.3 The
 Purchaser is resident in the jurisdiction set forth in the "Address of Residence" set out on page 2 of this Subscription
 Agreement, and unless the Purchaser has completed and executed with the U.S. Accredited Investor Certificate attached as Schedule
 B or the Qualified Institutional Buyer Letter attached as Schedule C:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 not a U.S. Person and is not purchasing the Units for the account of or benefit of a U.S. Person or a person within the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) was
 not offered the Units in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) did
 not execute or deliver this Subscription Agreement, in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) did
 not cause any buy order for the Purchaser's Units to originate in the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) has
 no intention to distribute either directly or indirectly any of the Securities in the United States, and the Purchaser will not offer,
 sell or otherwise transfer, directly or indirectly, any of the Securities in the United States or to, or for the account or benefit
 of, a U.S. Person or person in the United States except pursuant to registration under the 1933 Act and the securities laws of all
 applicable states, or pursuant to available exemptions therefrom; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) did
 not receive the offer to purchase the Units as a result of, nor will it engage in, any directed selling efforts (as defined in Regulation
 S); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Purchaser is a U.S. Purchaser and is either

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a
 U.S. Accredited Investor that has duly completed, and executed and delivered to the Corporation, Schedule "B" to this
 Subscription Agreement (U.S. Accredited Investor Certificate) and represents, warrants and covenants to the Corporation the accuracy
 of all matters set out therein, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 Qualified Institutional Buyer, and has duly completed, and executed and delivered to the Corporation, Schedule "C" to
 this Subscription Agreement (Qualified Institutional Buyer Letter) and represents, warrants and covenants to the Corporation the
 accuracy of all matters set out therein.

3.4 The
 Purchaser believes that it satisfies any and all applicable standards imposed by the jurisdiction of its residence or otherwise for
 investors with respect to an investment in the Securities.

3.5 If
 the Purchaser is not an individual, it is empowered, authorized and qualified to purchase the Units and the individual signing this
 Subscription Agreement on behalf of the Purchaser has been duly authorized by the Purchaser to do so.

3.6 The
 Purchaser is aware that no prospectus has been prepared or filed by the Corporation with any securities commission or similar authority
 in connection with the Offering, and that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Purchaser may be restricted from using most of the civil remedies available under applicable securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Purchaser may not receive information that would otherwise be required to be provided under applicable securities laws and the Corporation
 is relieved from certain obligations that would otherwise be required to be given if a prospectus were provided under applicable
 securities laws in connection with the Offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 sale of the Units and the issuance of the Securities to the Purchaser is subject to such sale and issuance being exempt from the
 requirements of applicable securities laws as to the filing of a prospectus or registration statement.

3.7 If
 the Purchaser is resident in or is otherwise subject to the securities laws of a jurisdiction of Canada, the Purchaser is purchasing
 the Units as principal for its own account and not for the benefit of any other person or company, for investment only and not with
 a view to the resale or distribution of all or any of the Securities, or the person signing this Subscription Agreement is purchasing
 the Units as agent for the principal disclosed herein with due and proper authority to execute all documentation in connection with
 the purchase on behalf of the Purchaser, and each Purchaser for whom the person signing this Subscription Agreement is acting as
 agent is purchasing as principal for its own account and not for the benefit of any other person or company, for investment only
 and not with a view to the resale or distribution of all or any of the Units, and the Purchaser is an "accredited investor"
 as defined in National Instrument 45-106 *Prospectus Exemptions* ()"**NI 45-106**") and is not a person created
 or used solely to purchase or hold securities as an "accredited investor" as defined in paragraph (m) of the aforesaid
 definition of "accredited investor", and the Purchaser has duly completed, executed and delivered to the Corporation,
 a Schedule "A" – *Accredited Investor Certificate*.

3.8 If
 the Purchaser is resident in or otherwise subject to the securities laws of a jurisdiction other than Canada or the United States
 then the Purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) currently
 has knowledge and experience or has consulted the Purchaser's own counsel, accountant or investment advisor, with respect to
 the investment contemplated hereby and applicable securities laws in the international jurisdiction in which the Purchaser resides
 which would apply to this subscription;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is
 purchasing, to its knowledge, the Units in compliance with or pursuant to exemptions from any prospectus, registration or similar
 requirements under the applicable securities laws of the international jurisdiction in which the Purchaser resides (and the Purchaser
 shall deliver to the Corporation such further particulars of such applicable securities laws or exemptions and the Purchaser's
 qualifications thereunder as the Corporation may request), and the purchase and sale of the Units does not, to its knowledge, trigger
 any obligation to prepare and file a prospectus, registration statement or similar document, or any other report with respect to
 such purchase and/or any registration or other obligation on the part of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to
 its knowledge, no applicable securities laws of the international jurisdiction in which the Purchaser resides require the Corporation
 to make any filings or seek any approvals of any kind whatsoever from any securities commission or regulatory authority of any kind
 whatsoever in the jurisdiction of residence of the Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Purchaser will not sell or otherwise dispose of any of the Securities except in accordance with all applicable securities laws including,
 without limitation, the rules, regulations and policies of the Exchange. If the Purchaser sells or otherwise disposes of any of the
 Securities other than through the facilities of the Exchange, the Purchaser will obtain from the person acquiring them a covenant
 in the same form as provided for in this Subscription Agreement, and the Corporation shall not have any obligation to register any
 purported sale or disposition of Securities which may be in violation of such laws and any such sale, transfer or other disposition
 shall be null and void and of no force or effect.

3.9 The
 Purchaser acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no
 securities commission or similar regulatory authority has reviewed or passed on the merits of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) there
 is no government or other insurance covering the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there
 are risks associated with the purchase of the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Securities have not been and will not be registered under the 1933 Act or any state securities or "blue sky" laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) there
 are restrictions on the Purchaser's ability to resell the Securities and it is the responsibility of the Purchaser to find
 out what those restrictions are and to comply with them before selling any of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Corporation has advised the Purchaser that the Corporation is relying on an exemption from the requirements to provide the Purchaser
 with a prospectus and to sell the Units through a person or company registered to sell securities under applicable securities laws
 and, as a consequence of acquiring the Units pursuant to this exemption, certain protections, rights and remedies provided by the
 applicable securities laws, including statutory rights of rescission or damages, will not be available to the Purchaser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) it
 is aware that no analysis has been undertaken to determine if the Corporation is a "passive foreign investment company"
 within the meaning of Section 1297 of the U.S. Internal Revenue Code of 1986. The Purchaser understands that if the Corporation were
 determined to be a passive foreign investment company, there may be adverse tax consequences to a U.S. holder of the Units.

3.10 The
 Purchaser is resident in the jurisdiction set forth in the "Address of Residence" set out on page 2 of this Subscription
 Agreement and the Purchaser will comply with all applicable securities laws and with the policies of the Exchange concerning the
 purchase of, the holding of and the resale restrictions on the Securities.

3.11 The
 Purchaser is aware that the offer made by this Subscription Agreement is irrevocable and requires acceptance by the Corporation and
 the acceptance for filing thereof by the Exchange and will not become an agreement between the Purchaser and the Corporation until
 accepted by the Corporation signing in the space above.

3.12 If
 an individual, the Purchaser has attained the age of majority and is legally competent to execute and deliver this Subscription Agreement
 and to take all actions required pursuant hereto and if a corporation, partnership or other entity, the Purchaser has been duly incorporated,
 created or organized and validly exists under the laws of its jurisdiction of incorporation, creation or organization and all necessary
 approvals by its directors and shareholders have been obtained for the execution and delivery of this subscription.

3.13 Upon
 acceptance of this subscription by the Corporation, this Subscription Agreement, including all schedules and appendices, will constitute
 a legal, valid and binding contract of purchase enforceable against the Purchaser in accordance with its terms and will not violate
 or conflict with the terms of any restriction, agreement or undertaking respecting purchases of securities by the Purchaser.

3.14 The
 Purchaser's purchase of the Units has not been made through or as a result of, the distribution of the Units is not being accompanied
 by and the Purchaser is not aware of, any advertisement of the securities in printed media of general and regular paid circulation,
 radio, television or electronically.

3.15 No
 prospectus or offering memorandum within the meaning of applicable securities laws or any other document purporting to describe the
 business and affairs of the Corporation has been delivered to the Purchaser in connection with the Offering.

3.16 No
 person has made to the Purchaser any written or oral representation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) that
 any person will resell or repurchase any of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) that
 any person will refund all or any part of purchase price of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as
 to the future price or value of any of the Securities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that
 any of the Securities will be listed and posted for trading on a stock exchange or that application has been made to list and post
 any of the Securities for trading on a stock exchange, other than the Exchange.

3.17 None
 of the Units are being purchased by the Purchaser with knowledge of any material fact about the Corporation that has not been generally
 disclosed.

3.18 In
 the case of a person signing this Subscription Agreement as agent for a disclosed principal, each beneficial purchaser for whom the
 agent is purchasing, or is deemed under NI 45-106 to be purchasing, as principal, is for its own account and not for the benefit
 of any other person, and such person is duly authorized to enter into this Subscription Agreement and to execute all documentation
 in connection with the purchase on behalf of each such beneficial purchaser.

3.19 The
 funds representing the aggregate Subscription Amount in respect of the Units which will be advanced by or on behalf of the Purchaser
 to the Corporation hereunder do 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 Section 3.19, the "**PCMLTFA**") and the Purchaser
 acknowledges and agrees that the Corporation may be required by law to provide the securities regulators with a list setting forth
 the identities of the beneficial purchasers of the Units, or disclosure pursuant to the PCMLTFA. Notwithstanding that the Purchaser
 may be purchasing Units as agent on behalf of an undisclosed principal, the Purchaser agrees to provide, on request, particulars
 as to the identity of such undisclosed principal as may be required by the Corporation in order to comply with the foregoing. To
 the best of the Purchaser's knowledge: (a) none of the subscription funds provided by or on behalf of the Purchaser, (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, or any other jurisdiction, or (ii) are being tendered on behalf of a person or entity who has not been identified
 to the Purchaser; and (b) the Purchaser will promptly notify the Corporation if the Purchaser discovers that any of such representations
 cease to be true, and shall provide the Corporation and the Agents with appropriate information in connection therewith.

3.20 The
 Purchaser is not, with respect to the Corporation or any of its affiliates, a "control person", as defined under applicable
 securities laws, and the acquisition of the Units hereunder by the Purchaser will not result in the Purchaser becoming a "control
 person".

3.21 The
 Purchaser has been advised to seek tax, investment and independent legal advice and any other professional advice the Purchaser considers
 appropriate in connection with the Purchaser's purchase of the Units and the Purchaser confirms that the Purchaser has not
 relied on the Corporation, or its legal counsel in any manner in connection with the Purchaser's purchase of the Units.

3.22 The
 Purchaser agrees that by accepting the Units, the Purchaser shall be representing and warranting that the foregoing representations
 and warranties are true as at the Closing with the same force and effect as if they had been made by the Purchaser at the Closing
 and that they shall survive the purchase by the Purchaser of the Units.

3.23 The
 Purchaser hereby agrees to indemnify and save harmless the Corporation, or its directors, officers, employees, advisors, affiliates,
 shareholders and agents, and their respective counsel, against all losses, claims, costs, expenses and damages or liabilities which
 any of them may suffer or incur and which are caused by or arise from any inaccuracy in, breach or misrepresentation by the Purchaser
 of, any representation, warranty or covenant.

3.24 The
 Purchaser undertakes to immediately notify the Corporation of any change in any statement or other information relating to the Purchaser
 set forth herein or in U.S. Accredited Investor Certificate or Qualified Institutional Buyer Letter, as the case may be, including
 any schedules thereto, that takes place prior to the Closing Date.

**4. <u>Purchaser's Acknowledgments</u>**

4.1 The
 Purchaser acknowledges and agrees (on its own behalf and, if applicable, on behalf of each beneficial purchaser for whom the Purchaser
 is contracting hereunder) with the Corporation (which acknowledgements and agreements shall survive the Closing) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 subscription forms part of the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Securities are subject to resale restrictions under applicable securities laws and the Purchaser covenants that it will not resell
 the Securities except in compliance with such laws and the Purchaser acknowledges that it is solely responsible (and the Corporation
 is not in any way responsible) for such compliance. The Purchaser is advised to consult the Purchaser's own legal advisors
 in this regard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Units are being offered for sale only on a "private placement" basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In
 purchasing the Units, the Purchaser has relied solely upon publicly available information relating to the Corporation and not upon
 any oral or written representation as to any fact or otherwise made by or on behalf of the Corporation or any other person associated
 therewith, the decision to purchase the Units was made on the basis of publicly available information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Purchaser's ability to transfer the Securities is limited by, among other things, applicable securities laws and the policies
 of the Exchange. In particular, the Purchaser acknowledges having been informed that the Securities are subject to resale restrictions
 under National Instrument 45-102 *Resale of Securities* ()"**NI 45-102**") and may not be sold or otherwise disposed
 of in Canada for a period of four months from the date of distribution of the Securities, unless a statutory exemption is available
 or a discretionary order is obtained from the applicable securities commission allowing the earlier resale thereof, and may be subject
 to additional resale restrictions if such sale or other disposition would be a "control distribution", as that term is
 defined in NI 45-102. If the Purchaser or a trade in the Securities is subject to the securities laws of a jurisdiction other than
 Canada, additional resale restrictions may apply under other applicable securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
 representations, warranties, covenants and acknowledgements of the Purchaser contained in this Subscription Agreement, and in any
 schedules or other documents or materials executed and delivered by the Purchaser hereunder, are made by the Purchaser with the intent
 that they may be relied upon by the Corporation, and its professional advisors in determining the Purchaser's eligibility to
 purchase the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 sale of the Units and the delivery of the Securities to the Purchaser is conditional upon such sale being exempt from the requirement
 to file a prospectus or registration statement or to prepare and deliver an offering memorandum or similar document under any applicable
 statute relating to the sale of the Units or upon the issuance of such orders, consents or approvals as may be required to permit
 such sale without the requirement of filing a prospectus or registration statement or preparing and delivering an offering memorandum
 or similar document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The
 Purchaser further acknowledges and agrees that the Corporation may be required to provide applicable securities regulatory authorities
 with a list setting forth the identities of the beneficial purchasers of the Units and that the Purchaser will provide, on request,
 particulars as to the identity of such beneficial purchasers as may be required by the Corporation in order to comply with the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Purchaser and, if the person signing this Subscription Agreement is acting as agent for a disclosed principal, such agent acknowledges
 and consents to the fact that the Corporation and the Agents are collecting the Purchaser's, and, if applicable, such agent's
 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), for the purpose of completing this Subscription Agreement. The Purchaser
 and, if the person signing this Subscription Agreement is acting as agent for a disclosed principal, such agent acknowledge and consent
 to the Corporation retaining such personal information for as long as permitted or required by law or business practices. The Purchaser
 and, if the person signing this Subscription Agreement is acting as agent for a disclosed principal, such agent further acknowledge
 and consent to the fact that the Corporation may be required by applicable securities laws, the rules and policies of any stock exchange
 or the rules of the Investment Industry Regulatory Organization of Canada to provide regulatory authorities or stock exchanges with
 any personal information provided by the Purchaser or, if applicable, such agent in this Subscription Agreement. The Purchaser and,
 if the person signing this Subscription Agreement is acting as agent for a disclosed principal, such agent represent and warrant
 that it has the authority to provide the consents and acknowledgements set out in this Subsection ‎4.1‎(i). In addition to
 the foregoing, the Purchaser and, if the person signing this Subscription Agreement is acting as agent for a disclosed principal,
 such agent acknowledge and agree that the Corporation may use and disclose the Purchaser's and, if applicable, such agent's
 personal information, and consents thereto, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for
 internal use with respect to managing the relationships between and contractual obligations of the Corporation and the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for
 use and disclosure for income tax related purposes, including without limitation, where required by law, disclosure to the Canada
 Revenue Agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) disclosure
 to stock exchanges and securities regulatory authorities and other regulatory bodies having jurisdiction with respect to approval
 or acceptance for filing of the Offering, reports of trades and similar stock exchange or regulatory filings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) disclosure
 to professional advisers of the Corporation in connection with the performance of their professional services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) disclosure
 to any person where such disclosure is necessary for legitimate business reasons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) disclosure
 to a court determining the rights of the parties under this Subscription Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) for
 use and disclosure as otherwise required or permitted by law.

Furthermore, the Purchaser is hereby notified that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) the
 Corporation may deliver to the Ontario Securities Commission certain personal information pertaining to the Purchaser, including
 such Purchaser's full name, residential address and telephone number, the number of Units purchased by the Purchaser and the
 total purchase price paid for such Units, the prospectus exemption relied on by the Corporation and the date of distribution of the
 Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) such
 information is being collected indirectly by the Ontario Securities Commission, and other applicable securities regulatory authorities,
 under the authority granted in applicable securities legislation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) such
 information is being collected for the purposes of the administration and enforcement of the securities legislation of Ontario, and
 other applicable jurisdictions; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) the
 Purchaser may contact the following public official in Ontario with respect to questions about the Ontario Securities Commission's
 indirect collection of such information at the following address and telephone number:

Inquiries Officer

Ontario Securities Commission

20 Queen Street West, 22<sup>nd</sup> Floor

Toronto, Ontario, M5H 3S8

Telephone: (416) 593-8314

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The
 Purchaser has been advised to consult the Purchaser's own legal advisors with respect to the merits and risks of an investment
 in the Units and with respect to applicable resale restrictions and the Purchaser is solely responsible, and the Corporation is not
 in any way responsible, for compliance with applicable resale restrictions, and the Purchaser further acknowledges that the Corporation's
 legal counsel is acting solely as counsel to the Corporation and not as counsel to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The
 Purchaser is aware of the characteristics of the Units and the risks relating to an investment therein and agrees that the Purchaser
 must bear the economic risk of his, her or its investment in the Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The
 Purchaser is aware that: (i) the Corporation may complete additional financings in the future in order to develop the Corporation's
 business and to fund its ongoing development; (ii) there is no assurance that such financings will be available and, if available,
 on reasonable terms; (iii) any such future financings may have a dilutive effect on the Corporation's securityholders, including
 the Purchaser; and (iv) if such future financings are not available, the Corporation may be unable to fund its on-going development
 and the lack of capital resources may result in the failure of the Corporation's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 specific attributes of the Warrants shall be set forth in the Warrant Certificate. The description of the Warrants contained in this
 Subscription Agreement is a summary only and is qualified in its entirety by the Warrant Certificate. In the event of any inconsistency
 between the provisions hereof and the provisions of the Warrant Certificate, the provisions of the Warrant Certificate shall prevail
 and take precedence.

**5. <u>Finders Fees</u>**

The Purchaser acknowledges and agrees that the Corporation may pay certain finders fees in conjunction with subscriptions included in the Offering.

**6. <u>Resale Restrictions and Legending of Securities</u>**

6.1 In
 addition to the acknowledgements given in Article ‎4 hereof, the Purchaser acknowledges that the Securities will be subject to
 statutory and Exchange imposed resale restrictions.

6.2 The
 Purchaser acknowledges that a legend restriction notation will be entered on the ownership statements evidencing the Securities (or
 endorsed on the certificates representing the Securities, if any), to the effect that the securities represented thereby are subject
 to a hold period and may not be traded until the expiry thereof except as permitted by applicable securities legislation and, if
 applicable, the policies of the Exchange. In particular, if required, the Purchaser acknowledges that such ownership statements (or
 the certificates representing the Securities, if any) shall bear a legend substantially in the following form and with the information
 completed:

**"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY [and for the Warrants:, OR ANY SECURITIES ISSUED ON ITS EXERCISE] MUST NOT TRADE THE SECURITY IN CANADA OR WITH A RESIDENT OF CANADA BEFORE ."**

6.3 The
 Purchaser acknowledges that the Securities have not been registered under the 1933 Act or the securities laws of any State of the
 United States and that the Corporation does not intend to register any of the Securities under the 1933 Act, or the securities laws
 of any State of the United States and has no obligation to do so. The Securities may not be offered or sold in the United States
 or to, or for the account or benefit of, a U.S. Person unless registered in accordance with United States federal securities laws
 and all applicable state securities laws or exemptions from such requirements are available. The Purchaser further acknowledges that
 the Corporation will not register any transfer of any of the Securities not made in accordance with Regulation S or pursuant to an
 available exemption from registration.

**7. <u>General</u>**

7.1 Time
 shall, in all respects, be of the essence hereof.

7.2 All
 references herein to monetary amounts are to lawful money of Canada.

7.3 The
 headings contained herein are for convenience only and shall not affect the meaning or interpretation hereof.

7.4 Except
 as expressly provided for in this Subscription Agreement and in the agreements, instruments and other documents provided for, contemplated
 or incorporated herein, this Subscription Agreement constitutes the only agreement between the parties with respect to the subject
 matter hereof and shall supersede any and all prior negotiations and understandings. This Subscription Agreement may be amended or
 modified in any respect by written instrument only.

7.5 The
 terms and provisions of this Subscription Agreement shall be binding upon and enure to the benefit of the Purchaser, the Corporation
 and their respective heirs, legal representatives, successors and assigns; provided that, except as herein provided, this Subscription
 Agreement shall not be transferable or assignable by any party without the written consent of the other.

7.6 This
 Subscription Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the
 laws of Canada applicable therein and the parties hereto hereby irrevocably attorn to the exclusive jurisdiction of the courts of
 the Province of British Columbia.

7.7 This
 Subscription Agreement is intended to and shall take effect on the date of acceptance of the subscription by the Corporation, notwithstanding
 its actual date of execution or delivery by any of the parties hereto, and shall be dated for reference as of the date of such acceptance
 by the Corporation.

7.8 The
 Corporation shall be entitled to rely on delivery of a facsimile copy of an executed subscription and acceptance by the Corporation
 of such subscription shall be legally effective to create a valid and binding Agreement between the Purchaser and the Corporation
 in accordance with the terms hereof.

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

7.10 The
 Purchaser acknowledges that the Purchaser has consented to and requested that all documents evidencing or relating in any way to
 the issuance of the Securities be drawn up in the English language only. **Le soussigne reconnait par les presentes avoir consenti et exige que tous les documents faisant foi ou se rapportant de quelque maniere a la vente des titres offerts soient rediges en anglais seulement.** 

7.11 Each
 of the parties hereto upon the request of the other parties hereto, whether before or after the Closing, shall do, execute, acknowledge
 and deliver or cause to be done, executed, acknowledged and delivered all such further acts, deeds, documents, assignments, transfers,
 conveyances, powers of attorney and assurances as reasonably may be necessary or desirable to complete, better evidence, or perfect
 the transactions contemplated herein.

**8. <u>Execution & Delivery</u>**

This Subscription Agreement may be executed in any number of counterparts and may be executed and delivered by facsimile, all of which when taken together shall be deemed to be one and the same document.

**THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK**

**<u>SCHEDULE "A"</u>**

**ACCREDITED INVESTOR CERTIFICATE**

*This certificate contains certain specifically defined terms, highlighted in boldface and defined herein. If you are unsure as to the meanings of those terms, or are unsure as to the applicability of any provision below to you, please contact a representative of the Corporation (as defined herein), your dealer and/or legal advisor before completing this certificate.*

 

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| | |
|:---|:---|
| **TO:** | **A2Z SMART TECHNOLOGIES CORP. (the "Corporation" or the "issuer")** |

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In connection with the purchase by the undersigned purchaser (the "**Purchaser**" or "**you**") of securities of the Corporation pursuant to the Subscription Agreement to which this Certificate is attached, the Purchaser or the undersigned on behalf of the Purchaser, as the case may be, certifies that the Purchaser is purchasing securities of the Corporation as principal and is (and at the time of acceptance of the subscription will be) an "accredited investor" within the meaning of National Instrument 45-106 *Prospectus Exemptions* and Section 73.3 of the *Securities Act* (Ontario), as applicable, because the Purchaser is:

**<u>\*\*If you check box (j), (k) or (l), you must also complete the below FORM 45-106F9 - Risk Acknowledgement Form\*\*</u>**

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| | | |
|:---|:---|:---|
| ☐ | (a) | except in Ontario, a Canadian financial institution, or a Schedule III bank; |
| ☐ | (a.1) | in Ontario, a financial institution that is (i) a bank listed in Schedule I, II or III of the *Bank Act* (Canada); (ii) an association to which the *Cooperative Credit Associations Act* (Canada) applies or a central cooperative credit society for which an order has been made under subsection 473(1) of that Act; or (iii) a loan corporation, trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative or credit union league or federation that is authorized by a statute of Canada or Ontario to carry on business in Canada or Ontario, as the case may be;<br>|
| ☐ | (b) | the Business Development Bank of Canada incorporated under the *Business Development Bank of Canada Act* (Canada);<br>|
| ☐ | (c) | a subsidiary of any person or company referred to in paragraphs (a), (a.1) or (b), if the person or company owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;<br>|
| ☐ | (d) | a person or company registered under the securities legislation of a jurisdiction (province or territory) of Canada as an adviser or dealer;<br>|
| ☐ | (e) | an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);<br>|
| ☐ | (e.1) | an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the *Securities Act* (Ontario) or the *Securities Act* (Newfoundland and Labrador); |
| ☐ | (f) | the Government of Canada or a jurisdiction (province or territory) of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction (province or territory) of Canada;<br>|
| ☐ | (g) | a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l'île de Montréal or an intermunicipal management board in Québec;<br>|

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| | | |
|:---|:---|:---|
| ☐ | (h) | any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;<br>|
| ☐ | (i) | a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction (province or territory) of Canada;<br>|
| ☐ | (j) | an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that, before taxes, but net of any related liabilities, exceeds $1,000,000; *[**PLEASE ALSO COMPLETE SECTIONS 2-4 OF FORM 45-106F9 BELOW**]*<br>|
| ☐ | (j.1) | an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000;<br>|
| ☐ | (k) | an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year; *[**PLEASE ALSO COMPLETE SECTIONS 2-4 OF FORM 45-106F9 BELOW**]*<br>|
| ☐ | (l) | an individual who, either alone or with a spouse, has net assets of at least $5,000,000; *[**PLEASE ALSO COMPLETE SECTIONS 2-4 OF FORM 45-106F9 BELOW**]*<br>|
| ☐ | (m) | a person, other than an individual or investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;<br>|
| ☐ | (n) | an investment fund that distributes or has distributed its securities only to (i) a person that is or was an accredited investor at the time of the distribution, (ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 [*Minimum amount investment*] or 2.19 [*Additional investment in investment funds*] of NI 45-106, or (iii) a person described in sub-paragraph (i) or (ii) that acquires or acquired securities under section 2.18 [*Investment fund reinvestment*] of NI 45-106;<br>|
| ☐ | (o) | an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;<br>|
| ☐ | (p) | a trust company or trust corporation registered or authorized to carry on business under the *Corporation and Loan Companies Act* (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;<br>|
| ☐ | (q) | a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction;<br>|
| ☐ | (r) | a registered charity under the *Income Tax Act* (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;<br>|
| ☐ | (s)  | an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;<br>|
| ☐ | (t) | a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;<br>|
| ☐ | (u) | an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser;<br>|

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| | | |
|:---|:---|:---|
| ☐ | (v) | (i) a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor; or (ii) in Ontario, a person that is recognized or designated by the Ontario Securities Commission as an accredited investor; or<br>|
| ☐ | (w) | a trust established by an accredited investor for the benefit of the accredited investor's family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor's spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor's spouse or of that accredited investor's former spouse.<br>|

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For the purposes hereof, the following definitions are included for convenience:

(a) "*bank* "
 means a bank named in Schedule I or II of the *Bank Act* (Canada);

(b) "*Canadian financial institution*" means (i) an association governed by the *Cooperative Credit Associations Act* (Canada) or
 a central cooperative credit society for which an order has been made under section 473(1) of that Act, or (ii) a bank, loan corporation,
 trust company, trust corporation, insurance company, treasury branch, credit union, caisse populaire, financial services cooperative,
 or league that, in each case, is authorized by an enactment of Canada or a jurisdiction of Canada to carry on business in Canada
 or a jurisdiction of Canada;

(c) "*company* "
 means any corporation, incorporated association, incorporated syndicate or other incorporated organization;

(d) "*director* "
 means: (a) a member of the board of directors of a company or an individual who performs similar functions for a company, and (b)
 with respect to a person that is not a company, an individual who performs functions similar to those of a director of a company;

(e) "eligibility
 adviser" means: (a) a person that is registered as an investment dealer and authorized to give advice with respect to the type
 of security being distributed, and (b) in Saskatchewan or Manitoba, also means a lawyer who is a practicing member in good standing
 with a law society of a jurisdiction of Canada or a public accountant who is a member in good standing of an institute or association
 of chartered accountants, certified general accountants or certified management accountants in a jurisdiction of Canada provided
 that the lawyer or public accountant must not (i) have a professional, business or personal relationship with the issuer, or any
 of its directors, executive officers, founders, or control persons, and (ii) have acted for or been retained personally or otherwise
 as an employee, executive officer, director, associate or partner of a person that has acted for or been retained by the issuer or
 any of its directors, executive officers, founders or control persons within the previous 12 months;

(f) "*financial assets*" means (i) cash, (ii) securities, or (iii) a contract of insurance, a deposit or an evidence of a deposit that is
 not a security for the purposes of securities legislation;

(g) "*fully managed account*" means an account of a client for which a person makes the investment decisions if that person has full
 discretion to trade in securities for the account without requiring the client's express consent to a transaction;

(h) "*foreign jurisdiction*" means a country other than Canada or a political subdivision of a country other than Canada;

(i) "*investment fund*" has the same meaning as in National Instrument 81-106 *Investment Fund Continuous Disclosure*;

(j) "*person* "
 includes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 individual,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 corporation,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a
 partnership, trust, fund and an association, syndicate, organization or other organized group of persons whether incorporated or
 not, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) an
 individual or other person in that person's capacity as a trustee, executor, administrator or personal or other legal representative.

(k) "*related liabilities*" means (i) liabilities incurred or assumed for the purpose of financing
 the acquisition or ownership of financial assets, or (ii) liabilities that are secured by
 financial assets;

(l) "*Schedule III bank*" means an authorized foreign bank named in Schedule III of the *Bank Act* (Canada);

(m) "*spouse* "
 means, an individual who, (i) is married to another individual and is not living separate
 and apart within the meaning of the *Divorce Act* (Canada), from the other individual,
 (ii) is living with another individual in a marriage-like relationship, including a marriage-like
 relationship between individuals of the same gender, or (iii) in Alberta, is an individual
 referred to in paragraph (i) or (ii), or is an adult interdependent partner within the meaning
 of the *Adult Interdependent Relationships Act* (Alberta); and

(n) "*subsidiary* "
 means an issuer that is controlled directly or indirectly by another issuer and includes
 a subsidiary of that subsidiary.

In NI 45-106 a person or company is considered to be an affiliated entity of another person or company if one is a subsidiary entity of the other, or if both are subsidiary entities of the same person or company, or if each of them is controlled by the same person or company.

In NI 45-106 a person (first person) is considered to control another person (second person) if (a) the first person, directly or indirectly, beneficially owns or exercises control or direction over securities of the second person carrying votes which, if exercised, would entitle the first person to elect a majority of the directors of the second person, unless that first person holds the voting securities only to secure an obligation, (b) the second person is a partnership, other than a limited partnership, and the first person holds more than 50% of the interests of the partnership, or (c) the second person is a limited partnership and the general partner of the limited partnership is the first person.

In NI 45-106 a trust company or trust corporation described in paragraph (p) above of the definition of "accredited investor" (other than in respect of a trust company or trust corporation registered under the laws of Prince Edward Island that is not registered or authorized under the *Corporation and Loan Companies Act* (Canada) or under comparable legislation in another jurisdiction of Canada) is deemed to be purchasing as principal.

In NI 45-106 a person described in paragraph (q) above of the definition of "accredited investor" is deemed to be purchasing as principal.

*[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]*

The foregoing representations contained in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the Closing Date. If any such representations shall not be true and accurate prior to the Closing Date, the undersigned shall give immediate written notice of such fact to the Corporation.

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| | |
|:---|:---|
| Date: | ***If this document is being executed on behalf of the Purchaser by an agent, complete the information below:*** |
| Print name of Purchaser | Print name of Agent |
| **X** | **X** |
| Signature of Purchaser or authorized signatory of Purchaser | Signature of agent of Purchaser or authorized signatory of Agent |
| Print name of authorized signatory of Purchaser (if applicable) | Print name of authorized signatory of agent (if applicable) |
| Print title of authorized signatory of Purchaser (if applicable) | Print title of authorized signatory of agent (if applicable) |

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**FORM 45-106F9**

***FORM FOR INDIVIDUAL ACCREDITED INVESTORS***

 ****

**WARNING!**

**This investment is risky. Don't invest unless you can afford to lose all the money you pay for this investment.**

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| | |
|:---|:---|
| **SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** | **SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** |
| **1. About your investment** | **1. About your investment** |
| Type of securities: *Units comprised of common shares and warrants* | Issuer: *A2Z Smart Technologies Corp.* |
| Purchased from: *Issuer* | Purchased from: *Issuer* |
| **SECTIONS 2 TO 4 TO BE COMPLETED BY THE PURCHASER** | **SECTIONS 2 TO 4 TO BE COMPLETED BY THE PURCHASER** |
| **2. Risk acknowledgement** | **2. Risk acknowledgement** |
| This investment is risky. Initial that you understand that: | **Your initials** |
| **Risk of loss** – You could lose your entire investment of $_____________________. [*Instruction: Insert the total dollar amount of the investment.]* |  |
| **Liquidity risk** – You may not be able to sell your investment quickly – or at all. |  |
| **Lack of information** – You may receive little or no information about your investment. |  |
| **Lack of advice** – You will not receive advice from the salesperson about whether this investment is suitable for you unless the salesperson is registered. The salesperson is the person who meets with, or provides information to, you about making this investment. To check whether the salesperson is registered, go to <u>www.aretheyregistered.ca.</u> |  |
| **3. Accredited investor status** | **3. Accredited investor status** |
| You must meet at least one of the following criteria to be able to make this investment. Initial the statement that applies to you. (You may initial more than one statement.) The person identified in section 6 is responsible for ensuring that you meet the definition of accredited investor. That person, or the salesperson identified in section 5, can help you if you have questions about whether you meet these criteria. | **Your <br> initials** |
| **●** Your net income before taxes was more than $200,000 in each of the 2 most recent calendar years, and you expect it to be more than $200,000 in the current calendar year. (You can find your net income before taxes on your personal income tax return.) |  |
| **●** Your net income before taxes combined with your spouse's was more than $300,000 in each of the 2 most recent calendar years, and you expect your combined net income before taxes to be more than $300,000 in the current calendar year. |  |
| **●** Either alone or with your spouse, you own more than $1 million in cash and securities, after subtracting any debt related to the cash and securities. |  |
| **●** Either alone or with your spouse, you have net assets worth more than $5 million. (Your net assets are your total assets (including real estate) minus your total debt.) |  |

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| |
|:---|
| **4. Your name and signature** |
| By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form. |
| First and last name (please print)**:** |
| Signature: Date: |
| **SECTION 5 TO BE COMPLETED BY THE SALESPERSON** |
| **5. Salesperson information** |
| *[Instruction: The salesperson is the person who meets with, or provides information to, the purchaser with respect to making this investment. That could include a representative of the issuer or selling security holder, a registrant or a person who is exempt from the registration requirement.]* |
| First and last name of salesperson (please print): |
| Telephone: Email: |
| Name of firm (if registered): |
| **SECTION 6 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER** |
| **6. For more information about this investment** |
| A2Z Smart Technologies Corp.<br> 559 Briar Hill Avenue, Toronto ON M5N 1N1<br>Gadi Levin<br> gadi@a2zas.com<br>**For more information about prospectus exemptions, contact your local securities regulator. You can find contact information at <u>www.securities-administrators.ca</u>.** |

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***Form instructions:***

 ****

&nbsp;&nbsp;&nbsp;&nbsp;*1.* *This form does not mandate the use of a specific font size or style but the font must be legible.* 

*2.* *The information in sections 1, 5 and 6 must be completed before the purchaser completes and signs the form.* 

*3.* *The purchaser must sign this form. Each of the purchaser and the issuer or selling security holder must receive a copy of this form signed by the purchaser. The issuer or selling security holder is required to keep a copy of this form for 8 years after the distribution.* 

 

**SCHEDULE "B"**

**U.S. ACCREDITED INVESTOR CERTIFICATE**

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| | |
|:---|:---|
| **TO:** | **A2Z SMART TECHNOLOGIES CORP.** (the "**Corporation**") |

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Reference is made to the subscription agreement between A2Z Smart Technologies Corp. (the "**Corporation**") and the undersigned (the "**Purchaser**") of which this Schedule "B" – U.S. Accredited Investor Certificate, once executed, forms a part (the "**Subscription Agreement**"). Upon execution of this U.S. Accredited Investor Certificate by the Purchaser, this U.S. Accredited Investor Certificate shall be incorporated into and form a part of the Subscription Agreement. All capitalized terms used herein, unless otherwise defined, have the meanings ascribed thereto in the Subscription Agreement.

1. In addition to the covenants, representations and warranties contained in the Subscription Agreement, the undersigned Purchaser covenants, represents and warrants to the Corporation that the Purchaser (on its own behalf and, if applicable, on behalf of each beneficial Purchaser for whom the Purchaser is contacting hereunder):

(a) has
 such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment
 and it is able to bear the economic risk of loss of the investment;

(b) is
 purchasing the Units and any Warrant Shares ultimately issuable upon exercise of the Warrants for its own account or for the account
 of one or more beneficial purchasers for whom it is exercising sole investment discretion, for investment only and not with a view
 to resale or distribution and in particular, neither it nor any beneficial purchaser for whose account it is purchasing the Units
 has any intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons unless
 such Securities are registered under the 1933 Act and any applicable state securities laws, or in reliance on and pursuant to an
 exemption from such requirements. The Purchaser acknowledges that the Corporation has not undertaken, and will have no obligation,
 to register any of the Securities under the 1933 Act or any applicable state securities laws;

(c) understands
 that the Securities (i) have not been and will not be registered under the 1933 Act or the securities laws of any state of the United
 States, (ii) that the purchase and sale contemplated hereby is being made in reliance on an exemption from registration under Rule
 506(b) of Regulation D based in part upon the Purchaser's representations contained herein, including without limitation that
 the Purchaser is an "accredited investor" within the meaning of Rule 501(a) of Regulation D, (iii) that the Securities
 may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, a U.S. Person or
 person in the United States except pursuant to registration under the 1933 Act and the securities laws of all applicable states or
 available exemptions therefrom, and (iv) the Corporation has no obligation or present intention of filing a registration statement
 under the 1933 Act or the securities laws of any applicable states in respect of any of the Securities;

(d) is
 an "accredited investor", as defined in Rule 501(a) of Regulation D, and satisfies
 one or more of the categories indicated below (please initial on the appropriate line or
 lines), and is:

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;_________ | Category 1.<br>[Rule 501(a)(1)] | A bank, as defined in Section 3(a)(2) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or |
| &nbsp;&nbsp;&nbsp;_________ | Category 2.<br>[Rule 501(a)(1)] | A savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act, whether acting in its individual or fiduciary capacity; or |
| &nbsp;&nbsp;&nbsp;_________ | Category 3.<br>[Rule 501(a)(1)] | A broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act of 1934, as amended; or |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;*_________* | Category 4.<br>[Rule 501(a)(1)] | An investment adviser registered pursuant to Section 203 of the U.S. Investment Advisers Act of 1940, as amended, or registered pursuant to the laws of a state; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 5.<br>[Rule 501(a)(1)] | An investment adviser relying on the exemption from registering with the Commission under Section 203(l) or (m) of the U.S. Investment Advisers Act of 1940, as amended; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 6.<br>[Rule 501(a)(1)] | An insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 7.<br>[Rule 501(a)(1)] | An investment company registered under the U.S. Investment Company Act of 1940, as amended; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 8.<br>[Rule 501(a)(1)] | A business development company as defined in Section 2(a)(48) of the U.S. Investment Company Act of 1940, as amended; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 9.<br>[Rule 501(a)(1)] | A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958, as amended; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 10.<br>[Rule 501(a)(1)] | A Rural Business Investment Company as defined in Section 384A of the U.S. Consolidated Farm and Rural Development Act of 1972, as amended; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 11.<br>[Rule 501(a)(1)] | A plan established and maintained by a state, its political subdivision or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with assets in excess of U.S. $5,000,000; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 12.<br>[Rule 501(a)(1)] | An employee benefit plan within the meaning of the U.S. Employee Retirement Income Security Act of 1974, as amended**,** in which the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such act, which is either a bank, savings and loan association, insurance company or registered investment advisor, or an employee benefit plan with total assets in excess of U.S. $5,000,000 or, if a self-directed plan, the investment decisions are made solely by persons who are accredited investors; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 13.<br>[Rule 501(a)(2)] | A private business development company as defined in Section 202(a)(22) of the U.S. Investment Advisers Act of 1940, as amended; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 14.<br>[Rule 501(a)(3)] | An organization described in Section 501(c)(3) of the U.S. Internal Revenue Code of 1986, as amended, a corporation, a Massachusetts or similar business trust, a partnership, or a limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of U.S. $5,000,000; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 15.<br>[Rule 501(a)(4)] | A director, executive officer or general partner of the issuer of the securities being offered or sold, or any director, executive officer, or general partner of a general partner of that issuer; or |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;*_________* | Category 16.<br>[Rule 501(a)(5)] | A natural person (including an IRA (Individual Retirement Account) owned by such person) whose individual net worth, or joint net worth with that person's spouse or spousal equivalent, exceeds U.S. $1,000,000; or |
|  |  | (**Note**: For the purposes of calculating "net worth" |
|  | (i) | the person's primary residence shall not be included as an asset; |
|  | (ii) | indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of the closing of the Offering, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of the closing of the Offering 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 shall be included as a liability); and |
|  | (iii) | indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability.) |
|  |  | (**Note**: For the purposes of calculating "joint net worth", joint net worth can be the aggregate net worth of the investor and spouse or spousal equivalent, and assets need not be held jointly to be included in the calculation. Reliance on the joint net worth standard does not require that the securities be purchased jointly.) |
|  |  | (**Note**: The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.) |
| &nbsp;&nbsp;&nbsp;*_________* | Category 17.<br>[Rule 501(a)(6)] | A natural person (including an IRA (Individual Retirement Account) owned by such person) who had an individual income in excess of U.S. $200,000 in each year of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of U.S. $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or (**Note**: The term "spousal equivalent" means a cohabitant occupying a relationship generally equivalent to that of a spouse.) |
| &nbsp;&nbsp;&nbsp;*_________* | Category 18.<br>[Rule 501(a)(7)] | A trust, with total assets in excess of U.S. $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under Regulation D under the U.S. Securities Act; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 19.<br>[Rule 501(a)(8)] | An entity in which each of the equity owners are accredited investors; or (**Note:** It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this category. If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this category may be available.) |
| &nbsp;&nbsp;&nbsp;*_________* | Category 20.<br>[Rule 501(a)(9)] | An entity, of a type not listed in Categories 1 through 14, 18 or 19 above, not formed for the specific purpose of acquiring the securities offered, owning "investments" (as defined in Rule 2a51-1(b) under the U.S. Investment Company Act of 1940, as amended) in excess of U.S. $5,000,000; or |

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;*_________* | Category 21.<br>[Rule 501(a)(10)] | A natural person holding in good standing one or more of the following professional licenses: |
|  | (i) | General Securities Representative license (Series 7); |
|  | (ii) | Private Securities Offerings Representative license (Series 82), and |
|  | (iii) | Investment Adviser Representative license (Series 65); or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 22.<br>[Rule 501(a)(11)] | A natural person who is a "knowledgeable employee" (as defined in Rule 3c-5(a)(4) under the U.S. Investment Company Act of 1940, as amended) of the issuer of the securities being offered or sold where the issuer would be an "investment company" (as defined in Section 3 of U.S. Investment Company Act of 1940, as amended), but for the exclusion provided by either Section 3(c)(1) or section 3(c)(7) of U.S. Investment Company Act of 1940, as amended; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 23.<br>[Rule 501(a)(12)] | A "family office" (as defined in Rule 202(a)(11)(G)-1 under the U.S. Investment Advisers Act of 1940, as amended): |
|  | (i) | with assets under management in excess of U.S. $5,000,000, |
|  | (ii) | that is not formed for the specific purpose of acquiring the securities offered, and |
|  | (iii) | whose prospective investment is directed by a person who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or |
| &nbsp;&nbsp;&nbsp;*_________* | Category 24.<br>[Rule 501(a)(13)] | A "family client" (as defined in Rule 202(a)(11)(G)-1 under the U.S. Investment Advisers Act of 1940, as amended) of a family office meeting the requirements in Category 23 above and whose prospective investment in the issuer is directed by such family office pursuant to clause (iii) of Category 23. |

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 ****

***If you checked Category 19, please indicate the name and category of accredited investor (by reference to the applicable number in this section 2(d)) of each equity owner:***

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| | |
|:---|:---|
| **Name of Equity Owner** | **Category of Accredited Investor** |

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(e) acknowledges
 that the Purchaser has not purchased the Units as a result of any form of "general
 solicitation" or "general advertising" (as such terms are defined in Regulation
 D under the 1933 Act) including advertisements, articles, notices or other communications
 published in any newspaper, magazine or similar media (including any press release of the
 Corporation) or broadcast over the Internet, radio, or television, or any seminar or meeting
 whose attendees have been invited by general solicitation or general advertising;

(f) understands
 that the Securities will not be registered under the 1933 Act and are "restricted securities"
 as that term is defined in Rule 144(a)(3) of the 1933 Act and agrees that if the Purchaser
 decides to offer, sell or otherwise transfer any of the Securities, the Purchaser will not
 offer, sell or otherwise transfer any of such Securities directly or indirectly, unless:

(A) the
sale is to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the
 sale is made outside the United States in a transaction meeting the requirements of Rule
 904 of Regulation S under the 1933 Act and in compliance with applicable local laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the
 sale is made pursuant to the exemption from the registration requirements under the 1933
 Act provided by Rule 144 or 144A thereunder, if available, and in compliance with any applicable
 state securities laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the
 Securities are sold in a transaction that does not require registration under the 1933 Act
 or any applicable state laws and regulations governing the offer and sale of securities,
 and the Purchaser has prior to such sale furnished to the Corporation an opinion of counsel
 reasonably satisfactory to the Corporation, stating that such sale, transfer, assignment
 or hypothecation is exempt from the registration and prospectus delivery requirements of
 the 1933 Act and any applicable state securities laws;

(g) acknowledges
 that it has not purchased the Units as a result of, and will not itself engage in, any "directed
 selling efforts" (as defined in Regulation S under the 1933 Act) in the United States
 in respect of the Securities which would include any activities undertaken for the purpose
 of, or that could reasonably be expected to have the effect of, conditioning the market in
 the United States for the resale of the Securities;

(h) understands
 and acknowledges that any certificates representing any Securities sold in the United States,
 and all certificates issued in exchange for or in substitution of such certificates will
 bear the following legend upon the original issuance of any such Securities and until the
 legend is no longer required under applicable requirements of the 1933 Act or applicable
 state securities laws:

"THE SECURITIES REPRESENTED HEREBY [for Warrants include: AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON WITHIN THE MEANING OF REGULATION S, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

*provided* that, if at the time of original sale or issuance of the Securities to the Purchaser, the Corporation is a "foreign issuer" within the meaning of Regulation S and the Securities are being sold pursuant to Rule 904 of Regulation S, the legend may be removed by providing to Computershare Trust Company, as registrar and transfer agent (i) a declaration in the form attached hereto as Exhibit I to Schedule "B" (or as the Corporation may prescribe from time to time) and (ii) if required by Computershare Trust Company, an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, or other evidence reasonably satisfactory to the Corporation, that the proposed transfer may be effected without registration under the 1933 Act;

*and provided, further*, that, if any Securities are being sold under Rule 144, if available, the legend may be removed by delivering to Computershare Trust Company an opinion of counsel of recognized standing reasonably satisfactory to the Corporation, that the legend is no longer required under applicable requirements of the 1933 Act or state securities laws;

(i) understands
 and acknowledges that in addition to the legend set forth in Section (h) above, the certificates
 representing the Warrants will bear a legend in substantially the following form:

"THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."

(j) understands
 the Warrants may not be exercised in the United States or by, or on behalf of, a U.S. Person
 or a person in the United States unless exemptions are available from the registration requirements
 of the 1933 Act and the securities laws of all applicable states, and the holder has furnished
 an opinion of counsel of recognized standing in form and substance reasonably satisfactory
 to the Corporation to such effect; provided that a holder of warrants (a "**Warrantholder** ")
 will not be required to deliver an opinion of counsel in connection with its due exercise
 of the Warrants that comprise part of the Units pursuant to the Offering, for its own account
 or for the account of the original beneficial purchaser, if any, at a time when the Warrantholder
 and such original beneficial purchaser, if any, are "accredited investors" within
 the meaning of Rule 501(a) of Regulation D;

(k) understands
 that the Corporation (i) is under no obligation to remain a "foreign issuer"
 (as defined in Regulation S), and (ii) may engage in one or more transactions which could
 cause the Corporation not to be a "foreign issuer";

(l) consents
 to the Corporation making a notation on its records or giving instruction to the registrar
 and transfer agent of the Corporation in order to implement the restrictions on transfer
 set forth and described herein;

(m) if
 an individual, is a resident of the state or other jurisdiction in the address set out in
 the "Address of Residence" on page 2 of the Subscription Agreement, or if the
 Purchaser is not an individual, the office of the Purchaser at which the Purchaser received
 and accepted the offer to purchase the Units is the address set out in the "Address
 of Residence" on page 2 of the Subscription Agreement;

(n) understands
 and acknowledges that the publicly available materials regarding the Corporation in Canada
 do not contain all the information that would be found in the applicable registration statement
 if the Securities were registered under the 1933 Act and that the Corporation's financial
 statements have been prepared in accordance with International Financial Reporting Standards
 ("IFRS") as issued by the International Accounting Standards Board and are subject
 to Canadian auditing and auditor independence standards. IFRS differs in some respects from
 United States generally accepted accounting principles, and thus may not be comparable to
 financial statements of United States companies;

(o) has
 relied solely upon its own independent investigation in making a decision to purchase the
 Units and acknowledges that (i) the Units are speculative investments which involve a substantial
 degree of risk with no assurance of any income from such investments and the possibility
 that such may become worthless and (ii) there is no market for the Securities in the United
 States, and investors must therefore be prepared to bear the economic risks for an indefinite
 period;

(p) certifies
 that the Purchaser has received or has had full access to all the information the Purchaser
 considers necessary or appropriate to make an informed investment decision with respect to
 the Units;

(q) certifies
 that the Purchaser has had an opportunity to ask questions and receive answers from the Corporation
 regarding the Corporation's business, management and financial affairs and the terms
 and conditions of the offer, sale and issuance of the Securities and to obtain additional
 information (to the extent the Corporation possessed such information or could acquire it
 without unreasonable effort or expense) necessary to verify any information furnished to
 the Purchaser or to which the Purchaser had access;

(r) certifies
 that the offer, sale and issuance of the Securities is not a transaction, or part of a chain
 of transactions which, although in technical compliance with Regulation D promulgated under
 the 1933 Act, is part of a plan or scheme to evade the registration requirements of the 1933
 Act;

(s) certifies
 that, if the Purchaser is an entity or organization, the Purchaser was not formed for the
 specific purpose of acquiring the Units;

(t) (i)
 the funds representing the aggregate purchase price which will be advanced by the Purchaser
 for the subscription for the Units in the Offering will not represent proceeds of crime for
 the purposes of the United States Uniting and Strengthening America by Providing Appropriate
 Tools Required to Intercept and Obstruct Terrorism Act (the "**PATRIOT Act** "),
 and the Purchaser acknowledges that the Corporation, and/or any of its respective affiliates
 in the United States may in the future be required by law to disclose the Purchaser's
 name and other information relating to the Subscription Agreement and the undersigned's
 subscription hereunder, on a confidential basis, pursuant to the PATRIOT Act, and (ii) no
 portion of the aggregate purchase price to be provided by the Purchaser (A) has been or will
 be derived from or related to any activity that is deemed criminal under the laws of the
 United States of America, or any other jurisdiction, or (B) is being tendered on behalf of
 a person or entity that has not been identified to or by the Purchaser; and the Purchaser
 shall promptly notify the Corporation and its affiliates in the United States if the Purchaser
 discovers that any of such representations ceases to be true and provide the Corporation
 and any of its affiliates in the United States with appropriate information in connection
 therewith;

(u) it
 acknowledges and understands that no agency, governmental authority, regulatory body, stock
 exchange or other entity (including, without limitation, the United States Securities and
 Exchange Commission or any state securities commission) has made any finding or determination
 as to the merit of investment in, nor have any such agencies or governmental authorities
 made any recommendation or endorsement with respect to, any of the Units;

(n) understands
 and acknowledges that (i) if the Corporation is deemed to have been at any time previously
 an issuer with no or nominal operations and no or nominal assets other than cash and cash
 equivalents, Rule 144 under the 1933 Act may not be available for resales of the Securities
 and (ii) the Corporation is not obligated to make Rule 144 under the 1933 Act available for
 resales of such Securities; and

(o) understands
 and agrees that there may be material tax consequences to the Purchaser of an acquisition,
 disposition or exercise of any of the Securities; the Corporation gives no opinion and makes
 no representation with respect to the tax consequences to the Purchaser under United States,
 state, local or foreign tax law of the Purchaser's acquisition or disposition of such
 Securities; in particular, no determination has been made whether the Corporation will be
 a "passive foreign investment company" within the meaning of Section 1297 of
 the United States Internal Revenue Code.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned has executed this U.S. Accredited Investor Certificate as of the __________ day of _______________________, 202__.

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| | |
|:---|:---|
| **If a Corporation, Partnership or Other Entity:** | **If an Individual:** |
| Print or Type Name | Print or Type Name |
| Signature | Signature |
| Name and Title of Signatory | Social Security/Tax I.D. No. |

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**THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK**

**<u>EXHIBIT I TO SCHEDULE "B"</u>**

FORM OF DECLARATION FOR REMOVAL OF LEGEND

TO: Computershare Trust Company as registrar and transfer agent of A2Z Smart Technologies Corp. <br>AND TO: A2Z Smart Technologies Corp.

The undersigned (a) acknowledges that the sale of ____________________ securities of A2Z Smart Technologies Corp. (the "**Corporation**") represented by certificate number _________________ or held in Direct Registration System (DRS) Account No._________________,<sup>1</sup> to which this declaration relates is being made in reliance on Rule 904 of Regulation S ("**Regulation S**") under the United States Securities Act of 1933, as amended (the "**1933 Act**"), and (b) certifies that (1) the undersigned is not (i) an "affiliate" of the Corporation (as that term is defined in Rule 405 under the 1933 Act), except solely by virtue of being an officer or director of the Corporation, (ii) a "distributor" as defined in Regulation S or (iii) an affiliate of a distributor; (2) the offer of such securities was not made to a person in the United States and either (i) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believed that the buyer was outside the United States, or (ii) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market within the meaning of Rule 902(b) of Regulation S, and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States or a U.S. person; (3) neither the seller nor any affiliate of the seller nor any person acting on their behalf has engaged or will engage in any directed selling efforts in the United States in connection with the offer and sale of such securities; (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as that term is defined in Rule 144(a)(3) under the 1933 Act); (5) the seller does not intend to replace securities sold in reliance on Rule 904 of Regulation S with fungible unrestricted securities; and (6) the sale is not a transaction, or part of a series of transactions, which, although in technical compliance with Regulation S, is part of a plan or scheme to evade the registration provisions of the 1933 Act. Terms used herein have the meanings given to them by Regulation S.

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| | |
|:---|:---|
| Dated: |  |
|  | Authorized signatory |
|  | Name of Seller (**please print**) |
|  | Name of authorized signatory (**please print**) |
|  | Title of authorized signatory (**please print**) |

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**Affirmation By Seller's Broker-Dealer (required for sales in accordance with Section (b)(2)(ii) above)**

We have read the foregoing representations of our customer, _________________________ (the "**Seller**") dated _______________________, with regard to our sale, for such Seller's account, of the securities of the Corporation described therein (the "**Securities**"). We have executed sales of the Securities pursuant to Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "**1933 Act**"), on behalf of the Seller. In that connection, we hereby represent to you as follows:

(1) no
 offer to sell Securities was made to a person in the United States;

(2) the
 sale of the Securities was executed in, on or through the facilities of the Toronto Stock
 Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated
 offshore securities market (as defined in Rule 902(b) of Regulation S under the 1933 Act),
 and, to the best of our knowledge, the sale was not pre-arranged with a buyer in the United
 States;

(3) no
 "directed selling efforts" were made in the United States by the undersigned,
 any affiliate of the undersigned, or any person acting on behalf of the undersigned; and

(4) we
 have done no more than execute the order or orders to sell the Securities as agent for the
 Seller and will receive no more than the usual and customary broker's commission that
 would be received by a person executing such transaction as agent.

For purposes of these representations: "**affiliate**" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the undersigned; "**directed selling efforts**" means any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities (including, but not be limited to, the solicitation of offers to purchase the Securities from persons in the United States); and "**United States**" means the United States of America, its territories or possessions, any State of the United States, and the District of Columbia.

Legal counsel to the Corporation shall be entitled to rely upon the representations, warranties and covenants contained herein to the same extent as if this affirmation had been addressed to them.

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| | |
|:---|:---|
| Date: |  |
| Name of Firm | Name of Firm |
| By: |  |
|  | Authorized officer |

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**Schedule "C"**

**QUALIFIED INSTITUTIONAL BUYER LETTER**

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| | |
|:---|:---|
| **TO:** | **A2Z SMART TECHNOLOGIES CORP.** (the "**Corporation**") |

---

Capitalized terms used in this Schedule "C" and defined in the Subscription Agreement to which the Schedule "C" is attached have the meaning defined in the Subscription Agreement unless otherwise defined herein.

This Qualified Institutional Buyer Letter is being delivered in connection with the execution and delivery of the Subscription Agreement of the Purchaser in connection with the purchase of Units of the Corporation. The Purchaser represents, warrants and covenants (which representations, warranties and covenants will survive the Closing Date) on its own behalf and, if applicable, on behalf of any beneficial purchaser for whom the Purchaser is contracting hereunder to and with the Corporation and acknowledges that the Corporation and its counsel are relying thereon that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 understands and acknowledges that the Securities have not been and will not be registered
 under the United States Securities Act of 1933, as amended (the "**1933 Act** ")
 or the securities laws of any state of the United States, and that the offer and sale of
 Units to it are being made in reliance upon Rule 506(b) of Regulation D under the 1933 Act
 and similar exemptions under applicable state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 is a Qualified Institutional Buyer and is acquiring the Units (i) for its own account and
 not on behalf of any other person, or (ii) for the account of a Qualified Institutional Buyer
 with respect to which it exercises sole investment discretion, for investment purposes, and,
 in either case, not with a view to any resale, distribution or other disposition of the Securities
 in violation of United States federal or state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 acknowledges that it has not purchased the Units as a result of any "directed selling
 efforts" (as defined in Regulation S under the 1933 Act ()"**Regulation S** ")
 or any "general solicitation" or "general advertising" (as those
 terms are used in Regulation D under the 1933 Act), including advertisements, articles, notices
 or other communications published in any newspaper, magazine or similar media or on the Internet,
 or broadcast over radio or television, or the internet, or any seminar or meeting whose attendees
 have been invited by general solicitation or general advertising;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) it
 understands and acknowledges that the Securities acquired by it in the United States will
 be considered "restricted securities" within the meaning of Rule 144(a)(3) under
 the 1933 Act ()"**Restricted Securities** "). To induce the Corporation to issue
 the Common Shares to the Purchaser without a 1933 Act restrictive legend, the Purchaser represents,
 warrants and covenants to the Corporation as follows (collectively, the "**Restricted Security Agreements** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if
 in the future it decides to offer, sell, pledge, or otherwise transfer, directly or indirectly,
 any of the Common Shares it will do so only: (A) to the Corporation or its subsidiaries,
 as applicable, (though the Corporation or its subsidiaries, as applicable, are under no obligation
 to purchase any such Securities) or (B) outside the United States in accordance with Rule
 904 of Regulation S under the 1933 Act and in compliance with applicable local laws or regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Common Shares cannot be offered, sold, pledged or otherwise transferred, directly or indirectly,
 in the United States or to, or 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;(iii) it
 will cause any CDS Clearing and Depository Services Inc. ()"**CDS**") participant
 holding the Common Shares on its behalf and the beneficial purchasers, if any, of the Common
 Shares to comply with the Restricted Security Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for
 so long as the Common Shares constitute Restricted Securities, it will not deposit any of
 the Common Shares into the facilities of the Depository Trust Company, or a successor depository
 within the United States, or arrange for the registration of any the Common Shares with Cede
 & Co. or any successor thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) at
 any time of exercise of any Warrants for Warrant Shares, it will be a Qualified Institutional
 Buyer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if
 at any time the Common Shares constitute Restricted Securities, and it is advised by the
 Corporation that the Corporation has ceased to be a "foreign issuer" as defined
 in Regulation S, it will return such Common Shares, if any, to the Corporation for the imposition
 of a U.S. Securities Act legend;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it
 has implemented appropriate internal controls and procedures to ensure that the Common Shares
 shall be properly identified in its records as Restricted Securities that are subject to
 the re-sale and transfer restrictions set forth above in (d) notwithstanding the absence
 of a U.S. restrictive legend or restricted CUSIP number;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) it
 understands and acknowledges that it is expected that (i) the Common Shares will be registered
 as a direct registration statement and will not be identified by a restricted CUSIP and (ii)
 no certificates evidencing such securities will be issued by the Corporation in reliance
 on our agreement with, and to, the Corporation to comply with the Restricted Security Agreements
 and we will receive only a customer confirmation in respect of our purchase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) understands
 and acknowledges that any certificates representing any Warrants and Warrants Shares sold
 or issued in the United States, and all certificates issued in exchange for or in substitution
 of such certificates will bear the following legend upon the original issuance of any such
 Warrants or Warrant Shares, as applicable, and until the legend is no longer required under
 applicable requirements of the 1933 Act or applicable state securities laws:

"THE SECURITIES REPRESENTED HEREBY [for Warrants include: AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF ANY U.S. PERSON WITHIN THE MEANING OF REGULATION S, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) understands
 and acknowledges that in addition to the legend set forth in Section (g) above, the certificates
 representing the Warrants will bear a legend in substantially the following form:

"THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) it
 understands that prior to exercise of any Warrants it would be required to deliver to the
 Corporation a notice of exercise for the Warrants substantially in a form acceptable to the
 Corporation and as reflected in the Warrant Certificate, which is expected to require it
 to either (a) represent that at the time of the exercise of any Warrants, it is exercising
 such securities for its own account or for the account of the original beneficial purchaser
 for whose account it originally purchased the Warrants, and each of it and such original
 beneficial purchaser, if any, was a Qualified Institutional Buyer on the date of the purchase
 and exercise of the Warrants, or (b) deliver a written opinion of counsel in form and substance
 reasonably satisfactory to the Corporation to the effect that the exercise of the Warrants
 and issuance of the Warrant Shares is exempt from the registration requirements of the 1933
 Act and all applicable state securities laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) it
 has had access to such financial and other information concerning the Corporation and the
 Securities as it has deemed necessary in connection with its decision to purchase the Units,
 including an opportunity to ask questions of, and request information from, the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) it
 has such knowledge and experience in financial and business matters as to be capable of evaluating
 the merits and risks of its investment in the Units and is able to bear the economic risks
 of such investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) it
 consents to the Corporation making a notation on its records or giving instructions to any
 transfer agent of the Corporation in order to implement the restrictions on transfer set
 forth and described herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) if
 required by applicable securities legislation, regulatory policy or order or by any securities
 commission, stock exchange or other regulatory authority, the Purchaser will execute, deliver,
 file and otherwise assist the Corporation in filing reports, questionnaires, undertakings
 and other documents with respect to the ownership of the Securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) it
 acknowledges that neither the Corporation, nor any person representing the Corporation has
 made any representation to it with respect to the Corporation or the offering or sale of
 the Units other than the information contained or incorporated by reference in the Subscription
 Agreement, which has been delivered to it and upon which it is relying in making its investment
 decision with respect to the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) it
 understands that the Corporation is not obligated to file and have no present intention of
 filing with the U.S. Securities and Exchange Commission or with any state securities administrator
 any registration statement in respect of re-sales of the Securities in the United States,
 and acknowledges that there are substantial restrictions on the transferability of the Securities
 and that it may not be possible for the Purchaser to readily liquidate his, her or its investment
 in the case of an emergency at any time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) it
 understands and acknowledges that the publicly available materials regarding the Corporation
 in Canada do not contain all the information that would be found in the applicable registration
 statement if the Securities were registered under the 1933 Act and that the Corporation's
 financial statements have been prepared in accordance with International Financial Reporting
 Standards ("IFRS") as issued by the International Accounting Standards Board
 and are subject to Canadian auditing and auditor independence standards. IFRS differs in
 some respects from United States generally accepted accounting principles, and thus may not
 be comparable to financial statements of United States companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) it
 understands and agrees that there may be material tax consequences to the Purchaser of an
 acquisition, disposition or exercise of any of the Securities; the Corporation gives no opinion
 and makes no representation with respect to the tax consequences to the Purchaser under United
 States, state, local or foreign tax law of the Purchaser's acquisition or disposition
 of such Securities; in particular, no determination has been made whether the Corporation
 will be a "passive foreign investment company" within the meaning of Section
 1297 of the United States Internal Revenue Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) the
 purchase of the Units hereunder is not a transaction, or part of a chain of transactions
 which, although in technical compliance with Regulation D under the 1933 Act, is part of
 a plan or scheme to evade the registration requirements of the 1933 Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) it
 acknowledges and understands that no agency, governmental authority, regulatory body, stock
 exchange or other entity (including, without limitation, the United States Securities and
 Exchange Commission or any state securities commission) has made any finding or determination
 as to the merit of investment in, nor have any such agencies or governmental authorities
 made any recommendation or endorsement with respect to, any of the Units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) it
 represents and warrants that (i) the funds representing the aggregate purchase price which
 will be advanced by the Purchaser for the subscription for the Units in the Offering will
 not represent proceeds of crime for the purposes of the United States Uniting and Strengthening
 America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the
 "**PATRIOT Act** "), and the Purchaser acknowledges that the Corporation, and/or
 any of its affiliates in the United States may in the future be required by law to disclose
 the Purchaser's name and other information relating to the Subscription Agreement and
 the undersigned's subscription hereunder, on a confidential basis, pursuant to the
 PATRIOT Act, and (b) no portion of the aggregate purchase price to be provided by the Purchaser
 (i) has been or will be derived from or related to any activity that is deemed criminal under
 the laws of the United States of America, or any other jurisdiction, or (ii) is being tendered
 on behalf of a person or entity that has not been identified to or by the Purchaser; and
 the Purchaser shall promptly notify the the Corporation and its affiliates in the United
 States if the Purchaser discovers that any of such representations ceases to be true and
 provide the Corporation and any of its affiliates in the United States with appropriate information
 in connection therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) it
 acknowledges that the representations, warranties and covenants contained in this Schedule
 are made by it with the intent that they may be relied upon by the Corporation in determining
 its eligibility or the eligibility of others on whose behalf it is contracting thereunder
 to purchase the Units. It agrees that by accepting the securities it shall be representing
 and warranting that the representations and warranties above are true as at the Closing with
 the same force and effect as if they had been made by it at the Closing and that they shall
 survive the purchase by it of securities and shall continue in full force and effect notwithstanding
 any subsequent disposition by it of such Securities.

 

*[The remainder of this page intentionally left blank. Signature page follows.]*

 

The foregoing representations and warranties are true and accurate as of the date of this Qualified Institutional Buyer Letter and will be true and accurate as of the Closing Date. If any such representation or warranty shall not be true and accurate prior to such Closing Date, the Purchaser shall give immediate written notice of such fact to the Corporation.

Dated: _______________________________, 202__.

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| | |
|:---|:---|
| Print name of Purchaser | Print name of Purchaser |
| By: |  |
|  | Signature |
| Print name of Signatory (if different from the Purchaser) | Print name of Signatory (if different from the Purchaser) |
| Title |  |

---

**SCHEDULE "D"**

**FORM 4C**

**CORPORATE PLACEE REGISTRATION FORM**

This Form will remain on file with the Exchange and must be completed if required under section 4(b) of Part II of Form 4B. The corporation, trust, portfolio manager or other entity (the "Placee") need only file it on one-time basis, and it will be referenced for all subsequent Private Placements in which it participates. If any of the information provided in this Form changes, the Placee must notify the Exchange prior to participating in further placements with Exchange listed Issuers. If as a result of the Private Placement, the Placee becomes an Insider of the Issuer, Insiders of the Placee are reminded that they must file a Personal Information Form (2A) or, if applicable, Declarations, with the Exchange.

1. Placee
 Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Name:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Complete Address:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Jurisdiction of Incorporation or Creation:

2. (a) Is the Placee
 purchasing securities as a portfolio manager: (Yes/No)?

(b) Is the Placee carrying on business as a portfolio manager outside of Canada: <br> (Yes/No)?  

3. If
 the answer to 2(b) above was "Yes", the undersigned certifies that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is purchasing securities of an Issuer on behalf of managed accounts for which it is making
 the investment decision to purchase the securities and has full discretion to purchase or
 sell securities for such accounts without requiring the client's express consent to
 a transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 carries on the business of managing the investment portfolios of clients through discretionary
 authority granted by those clients (a "portfolio manager" business) in ____________________
 [jurisdiction], and it is permitted by law to carry on a portfolio manager business in that
 jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it
 was not created solely or primarily for the purpose of purchasing securities of the Issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 total asset value of the investment portfolios it manages on behalf of clients is not less
 than $20,000,000; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) it
 has no reasonable grounds to believe, that any of the directors, senior officers and other
 insiders of the Issuer, and the persons that carry on investor relations activities for the
 Issuer has a beneficial interest in any of the managed accounts for which it is purchasing.

4. If
 the answer to 2(a). above was "No", please provide the names and addresses of Control Persons of the Placee:

---

| | | | |
|:---|:---|:---|:---|
| **Name \*** | **City** | **Province or State** | **Country** |

---

\* If the Control Person is not an individual, provide the name of the individual that makes the investment decisions on behalf of the Control Person.

5. Acknowledgement
- Personal Information and Securities Laws

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Personal
 Information" means any information about an identifiable individual, and includes information
 contained in sections 1, 2 and 4, as applicable, of this Form.

The undersigned hereby acknowledges and agrees that it has obtained the express written consent of each individual to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 disclosure of Personal Information by the undersigned to the Exchange (as defined in Appendix
 6B) pursuant to this Form; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 collection, use and disclosure of Personal Information by the Exchange for the purposes described
 in Appendix 6B or as otherwise identified by the Exchange, from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 undersigned acknowledges that it is bound by the provisions of applicable Securities Law,
 including provisions concerning the filing of insider reports and reports of acquisitions.

Dated and certified (if applicable), acknowledged and agreed, at <u>_______________________________________________</u> on <u>_____________________________________________</u>

---

| |
|:---|
| (Name of Purchaser - please print) |
| (Authorized Signature) |
| (Official Capacity - please print) |
| (Please print name of individual whose signature appears above) |

---

**THIS IS NOT A PUBLIC DOCUMENT**

## Exhibit 4.12

**Exhibit 4.12**

**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE ●, 2023.**

**WITHOUT PRIOR WRITTEN APPROVAL OF TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL ●, 2023.**

**THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

**THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THESE WARRANTS AND THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATIONS UNDER THE U.S. SECURITIES ACT.**

**FORM OF** **WARRANTS TO PURCHASE**

**COMMON SHARES OF A2Z SMART TECHNOLOGIES CORP.**

---

| | |
|:---|:---|
| **Warrant Certificate Number:** | **Number of Warrants:** |
| **2022-October-001** | **●** |

---

THIS IS TO CERTIFY THAT for value received (the "**Warrantholder**") has the right to purchase in respect of each whole warrant ("**Warrants**") represented by this certificate or by a replacement certificate (in either case this "**Warrant Certificate**"), at any time up to 5:00 p.m. (Toronto time), on October , 2024 (the "**Expiry Time**") one fully paid and non-assessable common share ("**Common Shares**" and which term shall include any shares or other securities to be issued in addition thereto or in substitution or replacement therefor as provided herein) of A2Z Smart Technologies Corp. (the "**Corporation**"), a corporation organized under the *Business Corporations Act* (British Columbia), as constituted on the date hereof at a purchase price (the purchase price in effect from time to time being called the "**Exercise Price**") of CDN$ per Common Share, subject to adjustment as provided herein.

The Corporation agrees that the Common Shares purchased pursuant to the exercise of the Warrants shall be and be deemed to be issued to the Warrantholder as of the close of business on the date on which this Warrant Certificate shall have been surrendered and payment made for such Common Shares as aforesaid.

Nothing contained herein shall confer any right upon the Warrantholder to subscribe for or purchase any Common Shares at any time after the Expiry Time and from and after the Expiry Time the Warrants and all rights under this Warrant Certificate shall be void and of no value.

The above provisions are subject to the following:

**1.**  **<u>Exercise:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)  **<u>Cash Exercise:</u>** In the event that the Warrantholder desires to exercise the right to purchase
 Common Shares conferred hereby, the Warrantholder shall (a) complete to the extent possible
 in the manner indicated and execute a subscription form in the form attached as  **<u>Error! Reference source not found.</u>** to this Warrant Certificate, (b) surrender this Warrant
 Certificate to the Corporation in accordance with section ‎9 hereof, and (c) pay the
 amount payable on the exercise of such Warrants in respect of the Common Shares subscribed
 for by certified cheque, bank draft or money order in lawful money of Canada payable to the
 Corporation or by transmitting same day funds in lawful money of Canada by wire to such account
 as the Corporation shall direct the Warrantholder. Upon such surrender and payment as aforesaid,
 the Warrantholder shall be deemed for all purposes to be the holder of record of the number
 of Common Shares to be so issued and the Warrantholder shall be entitled to delivery of a
 certificate or certificates representing such Common Shares and the Corporation shall cause
 such certificate or certificates to be delivered to the Warrantholder at the address specified
 in the subscription form within five (5) business days after such surrender and payment as
 aforesaid. No fractional Common Shares will be issuable upon any exercise of the Warrants
 and the Warrantholder will not be entitled to any cash payment or compensation in lieu of
 a fractional Common Share.

**2.**  **<u>Partial Exercise:</u>** The Warrantholder may from time to time subscribe for and purchase any
 lesser number of Common Shares than the number of Common Shares expressed in this Warrant
 Certificate. In the event that the Warrantholder subscribes for and purchases any such lesser
 number of Common Shares prior to the Expiry Time, the Warrantholder shall be entitled to
 receive a replacement certificate representing the unexercised balance of the Warrants.

**3.**  **<u>Not a Shareholder:</u>** The holding of the Warrants shall not constitute the Warrantholder
 a shareholder of the Corporation nor entitle the Warrantholder to any right or interest in
 respect thereof except as expressly provided in this Warrant Certificate.

**4.**  **<u>Covenants, Representations and Warranties:</u>** The Corporation hereby represents and warrants that
 it is authorized to create and issue the Warrants and covenants and agrees that it will cause
 the Common Shares from time to time subscribed for and purchased in the manner provided in
 this Warrant Certificate and the certificate or certificates representing such Common Shares
 to be issued and that, at all times prior to the Expiry Time, it will reserve and there will
 remain unissued a sufficient number of Common Shares to satisfy the right of purchase provided
 for in this Warrant Certificate. The Corporation hereby further covenants and agrees that
 it will at its expense expeditiously use its best efforts to obtain the listing of such Common
 Shares (subject to issue or notice of issue) on each stock exchange or over-the-counter market
 on which the Common Shares may be listed on the date that the Warrantholder exercises its
 right to subscribe for and purchase Common Shares pursuant to the terms and conditions of
 this Warrant Certificate. All Common Shares that are issued upon the exercise of the right
 of purchase provided in this Warrant Certificate, upon payment therefor of the amount at
 which such Common Shares may be purchased pursuant to the provisions of this Warrant Certificate,
 shall be and be deemed to be fully paid and non- assessable shares and free from all taxes,
 liens and charges with respect to the issue thereof. The Corporation hereby represents and
 warrants that this Warrant Certificate is a valid and enforceable obligation of the Corporation,
 enforceable in accordance with the provisions of this Warrant Certificate.

**5.**  **<u>Anti-Dilution Protection:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) <u>Definitions</u>:
 For the purposes of this section ‎5, unless there is something in the subject matter
 or context inconsistent therewith, the words and terms defined below shall have the respective
 meanings specified therefor in this subsection ‎5(1):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Adjustment Period**" means the period commencing on the date of issue of the Warrants and ending
 at the Expiry Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Current Market Price**" means, at any date, the price per Common Share equal to the weighted
 average price at which the Common Shares have traded on the TSX Venture Exchange or, if the
 Common Shares are not then listed on the TSX Venture Exchange, on such other Canadian stock
 exchange as may be selected by the directors of the Corporation for such purpose or, if the
 Common Shares are not then listed on any Canadian stock exchange, in the over-the-counter
 market, during the period of any twenty (20) consecutive trading days ending not more than
 five (5) business days before such date; provided that the weighted average price shall be
 determined by dividing the aggregate sale price of all Common Shares sold on the said exchange
 or market, as the case may be, during such twenty (20) consecutive trading days by the total
 number of Common Shares so sold; and provided further that if the Common Shares are not then
 listed on any Canadian stock exchange or traded in the over-the-counter market, then the
 Current Market Price shall be determined by a firm of independent chartered accountants selected
 by the directors of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**director** "
 means a director of the Corporation for the time being and, unless otherwise specified herein,
 a reference to action "**by the directors**" means action by the directors
 of the Corporation as a board or, whenever empowered, action by any committee of the directors
 of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**trading day**" with respect to a stock exchange or over-the-counter market means a day on
 which such stock exchange or market is open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) <u>Adjustments</u>:
 The Exercise Price and the number of Common Shares issuable to the Warrantholder upon the
 exercise of the Warrants shall be subject to adjustment from time to time in the events and
 in the manner provided as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If
 at any time during the Adjustment Period the Corporation shall:

&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) fix
 a record date for the issue of, or issue, Common Shares to the holders of all or substantially
 all of the outstanding Common Shares by way of a stock dividend;

&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) fix
 a record date for the distribution to, or make a distribution to, the holders of all or substantially
 all of the outstanding Common Shares payable in Common Shares or securities exchangeable
 for or convertible into Common 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;(iii) subdivide
 the outstanding Common Shares into a greater number of Common Shares; 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;(iv) consolidate
 the outstanding Common Shares into a lesser number of Common Shares,

(any of such events in subclauses ‎5(2)(a)(i), ‎5(2)(a)(ii), ‎5(2)(a)(iii) and ‎5(2)(a)(iv) above being herein called a "**Common Share Reorganization**"), the Exercise Price shall be adjusted on the earlier of the record date on which holders of Common Shares are determined for the purposes of the Common Share Reorganization and the effective date of the Common Share Reorganization to the amount determined by multiplying the Exercise Price in effect immediately prior to such record date or effective date, as the case may be, by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. the
 numerator of which shall be the number of Common Shares outstanding on such record date or
 effective date, as the case may be, before giving effect to such Common Share Reorganization;
 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the
 denominator of which shall be the number of Common Shares which will be outstanding immediately
 after giving effect to such Common Share Reorganization (including in the case of a distribution
 of securities exchangeable for or convertible into Common Shares the number of Common Shares
 that would have been outstanding had such securities been exchanged for or converted into
 Common Shares on such date).

To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5(2)(a) as a result of the fixing by the Corporation of a record date for the distribution of securities exchangeable for or convertible into Common Shares, the Exercise Price shall be readjusted immediately after the expiry of any relevant exchange or conversion right to the Exercise Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right. Any Warrantholder who has not exercised his right to subscribe for and purchase Common Shares on or prior to the record date of such stock dividend or distribution or the effective date of such subdivision or consolidation, as the case may be, upon the exercise of such right thereafter shall be entitled to receive and shall accept in lieu of the number of Common Shares then subscribed for and purchased by such Warrantholder, at the Exercise Price determined in accordance with this clause 5(2)(a) the aggregate number of Common Shares that such Warrantholder would have been entitled to receive as a result of such Common Share Reorganization, if, on such record date or effective date, as the case may be, such Warrantholder had been the holder of record of the number of Common Shares so subscribed for and purchased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 at any time during the Adjustment Period the Corporation shall fix a record date for the
 issue or distribution to the holders of all or substantially all of the outstanding Common
 Shares of rights, options or warrants pursuant to which such holders are entitled, during
 a period expiring not more than 45 days after the record date for such issue (such period
 being the "**Rights Period** "), to subscribe for or purchase Common Shares
 or securities exchangeable for or convertible into Common Shares at a price per share to
 the holder (or in the case of securities exchangeable for or convertible into Common Shares,
 at an exchange or conversion price per share) at the date of issue of such securities of
 less than 95% of the Current Market Price on such record date (any of such events being called
 a "**Rights Offering** "), the Exercise Price shall be adjusted effective immediately
 after the record date for such Rights Offering to the amount determined by multiplying the
 Exercise Price in effect on such record date by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 numerator of which shall be the aggregate of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. the
 number of Common Shares outstanding on the record date for the Rights Offering, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the
 quotient determined by dividing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) either
 (a) the product of the number of Common Shares offered during the Rights Period pursuant
 to the Rights Offering and the price at which such Common Shares are offered, or, (b) the
 product of the exchange or conversion price of the securities so offered and the number of
 Common Shares for or into which the securities offered pursuant to the Rights Offering may
 be exchanged or converted, as the case may be, by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 Current Market Price as of the record date for the Rights Offering; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 denominator of which shall be the aggregate of the number of Common Shares outstanding on
 such record date and the number of Common Shares offered pursuant to the Rights Offering
 (including in the case of the issue or distribution of securities exchangeable for or convertible
 into Common Shares the number of Common Shares for or into which such securities may be exchanged
 or converted).

If by the terms of the rights, options, or warrants referred to in this clause 5(2)(b), there is more than one purchase, conversion or exchange price per Common Share, the aggregate price of the total number of additional Common Shares offered for subscription or purchase, or the aggregate conversion or exchange price of the convertible or exchangeable securities so offered, shall be calculated for purposes of the adjustment on the basis of the lowest purchase, conversion or exchange price per Common Share, as the case may be. Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5(2)(b) as a result of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants referred to in this clause 5(2)(b), the Exercise Price shall be readjusted immediately after the expiry of any relevant exchange, conversion or exercise right to the Exercise Price which would then be in effect if the fair market value had been determined on the basis of the number of Common Shares actually issued and remaining issuable immediately after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 at any time during the Adjustment Period the Corporation shall fix a record date for the
 issue or distribution to the holders of all or substantially all of the outstanding Common
 Shares of:

&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) shares
 of the Corporation of any class other than Common 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;(ii) rights,
 options or warrants to acquire Common Shares or securities exchangeable for or convertible
 into Common Shares (other than rights, options or warrants pursuant to which holders of Common
 Shares are entitled, during a period expiring not more than forty-five (45) days after the
 record date for such issue, to subscribe for or purchase Common Shares or securities exchangeable
 for or convertible into Common Shares at a price per share (or in the case of securities
 exchangeable for or convertible into Common Shares at an exchange or conversion price per
 share on the record date for the issue of such securities) of at least 95% of the Current
 Market Price on such record 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;(iii) evidences
 of indebtedness of the Corporation (for greater certainty, excluding a cash dividend in the
 ordinary course); 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;(iv) any
 property or assets of the Corporation;

and if such issue or distribution does not constitute a Common Share Reorganization or a Rights Offering (any of such non-excluded events being herein called a "**Special Distribution**"), the Exercise Price shall be adjusted effective immediately after the record date for the Special Distribution to the amount determined by multiplying the Exercise Price in effect on the record date for the Special Distribution by a fraction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. the
 numerator of which shall be the difference between

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 product of the number of Common Shares outstanding on such record date and the Current Market
 Price on such record date, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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
 fair value, as determined by the directors of the Corporation, to the holders of Common Shares
 of the shares, rights, options, warrants, evidences of indebtedness or property or assets
 to be issued or distributed in the Special Distribution, 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. the
 denominator of which shall be the product obtained by multiplying the number of Common Shares
 outstanding on such record date by the Current Market Price on such record date.

Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5(2)(c) as a result of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants to acquire Common Shares or securities exchangeable for or convertible into Common Shares referred to in this clause 5(2)(c), the Exercise Price shall be readjusted immediately after the expiry of any relevant exercise, exchange or conversion right to the amount which would then be in effect based upon the number of Common Shares issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 at any time during the Adjustment Period there shall occur:

&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) a
 reclassification or redesignation of the Common Shares, a change of the Common Shares into
 other shares or securities or any other Capital Reorganization involving the Common Shares
 other than a Common Share Reorganization;

&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) a
 consolidation, amalgamation or merger of the Corporation with or into another body corporate
 which results in a reclassification or redesignation of the Common Shares or a change of
 the Common Shares into other shares or 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;(iii) the
 transfer of the undertaking or assets of the Corporation as an entirety or substantially
 as an entirety to another corporation or entity;

(any of such events being called a "**Capital Reorganization**"), after the effective date of the Capital Reorganization the Warrantholder shall be entitled to receive, and shall accept, for the same aggregate consideration, upon exercise of the Warrants, in lieu of the number of Common Shares to which the Warrantholder was theretofor entitled upon the exercise of the Warrants, the kind and aggregate number of shares and other securities or property resulting from the Capital Reorganization which the Warrantholder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Warrantholder had been the registered holder of the number of Common Shares which the Warrantholders was theretofore entitled to purchase or receive upon the exercise of the Warrants. If necessary, as a result of any such Capital Reorganization, appropriate adjustments shall be made in the application of the provisions of this Warrant Certificate with respect to the rights and interests thereafter of the Warrantholder to the end that the provisions shall thereafter correspondingly be made applicable as nearly as may reasonably be possible in relation to any shares or other securities or property thereafter deliverable upon the exercise of the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 at any time during the Adjustment Period any adjustment or readjustment in the Exercise Price
 shall occur pursuant to the provisions of clause 5(2)(a), 5(2)(b) or 5(2)(c) of this Warrant
 Certificate, then the number of Common Shares purchasable upon the subsequent exercise of
 the Warrants shall be simultaneously adjusted or readjusted, as the case may be, by multiplying
 the number of Common Shares purchasable upon the exercise of the Warrants immediately prior
 to such adjustment or readjustment by a fraction which shall be the reciprocal of the fraction
 used in the adjustment or readjustment of the Exercise Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) <u>Rules</u>:
 The following rules and procedures shall be applicable to adjustments made pursuant to subsection
 ‎5(2) hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject
 to the following clauses of this subsection ‎5(3), any adjustment made pursuant to subsection
 ‎5(2) hereof shall be made successively whenever an event referred to therein shall occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No
 adjustment in the Exercise Price shall be required unless such adjustment would result in
 a change of at least 1% in the then Exercise Price and no adjustment shall be made in the
 number of Common Shares purchasable or issuable on the exercise of the Warrants unless it
 would result in a change of at least one one- hundredth of a Common Share; provided, however,
 that any adjustments which except for the provision of this clause ‎5(3)(b) would otherwise
 have been required to be made shall be carried forward and taken into account in any subsequent
 adjustment. Notwithstanding any other provision of subsection ‎5(2) hereof, no adjustment
 of the Exercise Price shall be made which would result in an increase in the Exercise Price
 or a decrease in the number of Common Shares issuable upon the exercise of the Warrants (except
 in respect of the Common Share Reorganization described in subclause ‎5(2)(a)(iv) hereof
 or a Capital Reorganization described in subclause ‎5(2)(d)(ii) hereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject
 to the prior written consent of the TSX Venture Exchange, no adjustment in the Exercise Price
 or in the number or kind of securities purchasable upon the exercise of the Warrants shall
 be made in respect of any event described in section ‎5 hereof if the Warrantholder is
 entitled to participate in such event on the same terms *mutatis mutandis* as if the
 Warrantholder had exercised the Warrants prior to or on the record date or effective date,
 as the case may be, of such event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No
 adjustment in the Exercise Price or in the number of Common Shares purchasable upon the exercise
 of the Warrants shall be made pursuant to subsection ‎5(2) hereof in respect of the issue
 from time to time of Common Shares pursuant to this Warrant Certificate or pursuant to any
 stock option, stock purchase or stock bonus plan in effect from time to time for directors,
 officers or employees of the Corporation and/or any subsidiary of the Corporation and any
 such issue, and any grant of options in connection therewith, shall be deemed not to be a
 Common Share Reorganization, a Rights Offering nor any other event described in subsection
 ‎5(2) hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 the Corporation takes any action affecting the Common Shares to which the foregoing provisions
 of this section ‎5(2), in the opinion of the board of directors of the Corporation, acting
 in good faith, are not strictly applicable, or if strictly applicable would not fairly adjust
 the rights of the Warrantholder against dilution in accordance with the intent and purposes
 hereof, or would otherwise materially affect the rights of the Warrantholder hereunder, then
 the Corporation shall, subject to the approval of the TSX Venture Exchange (or such other
 stock exchange or quotation system on which the Common Shares are then listed and posted
 (or quoted) for trading, as applicable), execute and deliver to the Warrantholder an amendment
 hereto providing for an adjustment in the application of such provisions so as to adjust
 such rights as aforesaid in such manner as the board of directors of the Corporation may
 determine to be equitable in the circumstances, acting in good faith. The failure of the
 taking of action by the board of directors of the Corporation to so provide for any adjustment
 on or prior to the effective date of any action or occurrence giving rise to such state of
 facts will be conclusive evidence that the board of directors has determined that it is equitable
 to make no adjustment in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) If
 the Corporation shall set a record date to determine holders of Common Shares for the purpose
 of entitling such holders to receive any dividend or distribution or any subscription or
 purchase rights and shall, thereafter and before the distribution to such holders of any
 such dividend, distribution or subscription or purchase rights, legally abandon its plan
 to pay or deliver such dividend, distribution or subscription or purchase rights, then no
 adjustment in the Exercise Price or the number of Common Shares purchasable upon exercise
 of the Warrant shall be required by reason of the setting of such record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) In
 any case in which this Warrant Certificate shall require that an adjustment shall become
 effective immediately after a record date for an event referred to in subsection ‎5(2)
 hereof, the Corporation may defer, until the occurrence of such event:

&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) issuing
 to the Warrantholder, to the extent that the Warrants are exercised after such record date
 and before the occurrence of such event, the additional Common Shares or other securities
 issuable upon such exercise by reason of the adjustment required by such event; 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;(ii) delivering
 to the Warrantholder any distribution declared with respect to such additional Common Shares
 or other securities after such record date and before such event;

provided, however, that the Corporation shall deliver to the Warrantholder an appropriate instrument evidencing the right of the Warrantholder upon the occurrence of the event requiring the adjustment, to an adjustment in the Exercise Price or the number of Common Shares purchasable upon the exercise of the Warrants and to such distribution declared with respect to any such additional Common Shares issuable on the exercise of the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) In
 the absence of a resolution of the directors fixing a record date for a Rights Offering,
 the Corporation shall be deemed to have fixed as the record date therefor the date of the
 issue of the rights, options or warrants issued pursuant to the Rights Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Corporation will maintain a register of holders of Warrants at its principal office. The
 Corporation may deem and treat the registered holder of any Warrant Certificate as the absolute
 owner of the Warrants represented thereby for all purposes, and the Corporation shall not
 be affected by any notice or knowledge to the contrary except where the Corporation is required
 to take notice by statute or by order of a court of competent jurisdiction. A Warrantholder
 shall be entitled to the rights evidenced by such Warrant free from all equities or rights
 of set-off or counterclaim between the Corporation and the original or any intermediate holder
 thereof and all persons may act accordingly and the receipt by any such Warrantholder of
 the Common Shares purchasable pursuant to such Warrant shall be a good discharge to the Corporation
 for the same and the Corporation shall not be bound to inquire into the title of any such
 Warrantholder except where the Corporation is required to take notice by statute or by order
 of a court of competent jurisdiction.

The registered holders of Warrants shall have the power from time to time by an extraordinary resolution (as hereinafter defined):

&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
 sanction any modification, abrogation, alteration or compromise of the rights of the registered
 holders of Warrants against the Corporation which shall be agreed to by the Corporation;
 and/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;(ii) to
 assent to any modification of or change in or omission from the provisions contained herein
 or in any instrument ancillary or supplemental hereto which shall be agreed to by the Corporation;
 and/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;(iii) to
 restrain any registered holder of a Warrant from taking or instituting any suit or proceedings
 against the Corporation for the enforcement of any of the covenants on the part of the Corporation
 conferred upon the registered holders of Warrants by the terms of the Warrants.

Any such extraordinary resolution as aforesaid shall be binding upon all the registered holders of Warrants whether or not assenting in writing to any such extraordinary resolution, and each registered holder of any of the Warrants shall be bound to give effect thereto accordingly. Such extraordinary resolution shall, where applicable, be binding on the Corporation which shall give effect thereto accordingly.

The Corporation shall forthwith upon receipt of an extraordinary resolution provide notice to all registered holders of Warrants of the date and text of such resolution. The registered holders of Warrants assenting to an extraordinary resolution agree to provide the Corporation forthwith with a copy of any extraordinary resolution passed.

The expression "**extraordinary resolution**" when used herein shall mean a resolution assented to in writing, in one or more counterparts, by the registered holders of Warrants calling in the aggregate for not less than seventy-five per cent (75%) of the aggregate number of Common Shares called for by all of the Warrants which are, at the applicable time, outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) If
 a dispute shall at any time arise with respect to adjustments of the Exercise Price or the
 number of Common Shares or other securities purchasable upon the exercise of the Warrants,
 such disputes shall be conclusively determined by the auditors of the Corporation or if they
 are unable or unwilling to act, by such other firm of independent chartered accountants as
 may be selected by the directors and any such determination shall be conclusive evidence
 of the correctness of any adjustment made pursuant to subsection ‎5(2) hereof and shall
 be binding upon the Corporation and the Warrantholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) As
 a condition precedent to the taking of any action which would require an adjustment pursuant
 to subsection ‎5(2) hereof, including the Exercise Price and the number or class of Common
 Shares or other securities which are to be received upon the exercise thereof, the Corporation
 shall take any action which may, in the opinion of counsel to the Corporation, be necessary
 in order that the Corporation may validly and legally issue as fully paid and non-assessable
 shares all of the Common Shares or other securities which the Warrantholder is entitled to
 receive in accordance with the provisions of this Warrant Certificate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) <u>Notice</u>:
 Within five (5) days of the effective date of any event that requires an adjustment in any
 of the rights of the Warrantholder under this Warrant Certificate, including the Exercise
 Price or the number of Common Shares that may be purchased under this Warrant Certificate,
 the Corporation shall deliver to the Warrantholder written notice specifying the particulars
 of such event and, if determinable, the required adjustment and the calculation of such adjustment.
 In case any adjustment for which a notice in this subsection ‎5(4) has been given is
 not then determinable, the Corporation shall promptly after such adjustment is determinable
 deliver to the Warrantholder written notice providing the calculation of such adjustment.
 The Corporation hereby covenants and agrees that the register of transfers and share transfer
 books for the Common Shares and Warrants will be open, and that the Corporation will not
 take any action which might deprive the Warrantholder of the opportunity of exercising the
 rights of subscription contained in this Warrant Certificate, during such five (5) day period.

**6.**  **<u>Further Assurances:</u>** The Corporation hereby covenants and agrees that it will do, execute,
 acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, all and
 every such other act, deed and assurance as the Warrantholder shall reasonably require for
 the better accomplishing and effectuating of the intentions and provisions of this Warrant
 Certificate.

**7.**  **<u>Time of Essence:</u>** Time shall be of the essence of this Warrant Certificate.

**8.**  **<u>Governing Laws:</u>** This Warrant Certificate shall be construed in accordance with the laws of
 the Province of Ontario and the federal laws of Canada applicable therein.

**9.**  **<u>Notices:</u>** All notices or other communications to be given under this Warrant Certificate shall
 be delivered by hand or by email and, if delivered by hand, shall be deemed to have been
 given on the delivery date and, if sent by email, on the date of transmission if sent before
 5:00 p.m. on a business day or, if such day is not a business day, on the first business
 day following the date of transmission.

Notices to the Corporation shall be addressed to:

A2Z Smart Technologies Corp.<br> 1600 - 609 Granville Street

Vancouver, British Columbia

V7Y 1C3

Attention: Gadi Levin <br> Email: gadi@a2zas.com

Notices to the Warrantholder shall be addressed to the address of the Warrantholder set out on the face page of this Warrant Certificate.

The Corporation and the Warrantholder may change its address for service by notice in writing to the other of them specifying its new address for service under this Warrant Certificate.

**10.**  **<u>Legends on Common Shares:</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Any
 certificate representing Common Shares issued upon the exercise of the Warrants prior to
 the date which is four months and one (1) day after the date hereof will bear the following
 legends:

"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE ●, 2023"

and, if issued prior to the date which is four months and one day after the date hereof, may also bear the following legend:

"WITHOUT PRIOR WRITTEN APPROVAL OF TSX VENTURE EXCHANGE AND COMPLIANCE WITH ALL APPLICABLE SECURITIES LEGISLATION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF TSX VENTURE EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT UNTIL ●, 2023";

provided that at any time subsequent to the date which is four months and one day after the date hereof any certificate representing such Common Shares may be exchanged for a certificate bearing no such legends. The Corporation shall use the best efforts thereof to cause the registrar and transfer agent to deliver the certificate representing such Common Shares within three (3) business days after receipt of the legended certificate or certificates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Any
 certificate representing Common Shares issued upon the exercise of the Warrant and issuable
 to a person in the United States or a U.S. Person (as defined in Regulation S under the United
 States Securities Act of 1933, as amended (the "**U.S. Securities Act** "))
 will be required to bear the following legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA*.*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Any
 certificate representing unexercised Warrants and issuable to a person in the United States
 or a U.S. Person (as defined in Regulation S under the U.S. Securities Act) will be required
 to bear the following legends:

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, (THE "U. S. SECURITIES ACT"), AND MAY NOT BE OFFERED, SOLD, EXCHANGED, MORTGAGED, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED DIRECTLY OR INDIRECTLY, EXCEPT: (A) TO A2Z SMART TECHNOLOGIES CORP. (THE "CORPORATION"), (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S ("REGULATION S") UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) WITHIN THE UNITED STATES IN ACCORDANCE WITH (1) RULE 144A UNDER THE U.S. SECURITIES ACT IF AVAILABLE, OR (2) RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE, AND IN EACH CASE COMPLIANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS, PROVIDED THAT IN THE CASE OF TRANSFERS PURSUANT TO (C)(2) OR (D) ABOVE, THE HOLDER HAS, PRIOR TO SUCH TRANSFER, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING OR OTHER EVIDENCE OF EXEMPTION, IN EITHER CASE REASONABLY SATISFACTORY TO THE CORPORATION. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

THESE WARRANTS MAY NOT BE EXERCISED BY OR ON BEHALF OF A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THESE WARRANTS AND THE SHARES ISSUABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATIONS UNDER THE U.S. SECURITIES ACT.

**11.**  **<u>Lost Certificate:</u>** If this Warrant Certificate or any replacement hereof becomes stolen,
 lost, mutilated or destroyed, the Corporation shall, on such terms as it may in its discretion
 impose, acting reasonably, issue and deliver a new certificate, in form identical hereto
 but with appropriate changes, representing any unexercised portion of the subscription rights
 represented hereby to replace the certificate so stolen, lost, mutilated or destroyed.

**12.**  **<u>Language:</u>** The parties hereto acknowledge and confirm that they have requested that this Warrant
 Certificate as well as all notices and other documents contemplated hereby be drawn up in
 the English language. Les parties aux présentes reconnaissent et confirment qu'elles
 ont exigé que la présente convention ainsi que tous les avis et documents qui
 s'y rattachent soient rédigés en langue anglaise.

**13.**  **<u>Transfer:</u>** The Warrants are transferable and the term "Warrantholder" shall mean
 and include any successor, transferee or assignee of the current or any future Warrantholder.
 The Warrants may by transferred by the Warrantholder completing and delivering to the Corporation
 a completed <u>Schedule A</u>.

**14.**  **<u>Ranking:</u>** All Warrants shall rank *pari passu*, whatever may be the actual date of issue
 of the same.

**15.**  **<u>Successors and Assigns:</u>** This Warrant Certificate shall enure to the benefit of the Warrantholder
 and the successors thereof and shall be binding upon the Corporation and the successors and
 assignees thereof.

**16.**  **<u>Counterpart Signatures:</u>** This Warrant Certificate may be executed in any number of counterparts
 and may be executed and delivered by facsimile, all of which when taken together shall be
 deemed to be one and the same document.

IN WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be signed by an authorized officer as of the ● day of October, 2022.

---

| | |
|:---|:---|
| **A2Z SMART TECHNOLOGIES CORP.** | **A2Z SMART TECHNOLOGIES CORP.** |
| Per: | |
| Name: | Gadi Levin |
| Title: | Chief Financial Officer |

---

**SCHEDULE A**

**WARRANT EXERCISE FORM<br>** 

<br> TO: **A2Z SMART TECHNOLOGIES CORP.**

The undersigned hereby subscribes for ____________ common shares ("**Common Shares**") of A2Z Smart Technologies Corp. (the "**Corporation**") (or such other number of Common Shares or other securities to which such subscription entitles the undersigned in lieu thereof or in addition thereto) pursuant to the provisions of the warrant certificate (the "**Warrant Certificate**") dated as of the ● day of October, 2022 issued by the Corporation to the Warrantholder (as defined in the Warrant Certificate) at a purchase price of US$ per Common Share if exercised on or before 5:00 p.m. on ●, 2024, (or at such other purchase price as may then be in effect under the provisions of the Warrant Certificate) and on and subject to the other terms and conditions specified in the Warrant and encloses herewith a cheque, bank draft or money order or has transmitted good same day funds by wire or other similar transfer in lawful money of Canada payable to or to the order of the Corporation in payment of the subscription price.

The undersigned represents, warrants and certifies as follows (one of the following must be checked):

---

| | |
|:---|:---|
| A. ☐ | the undersigned holder at the time of exercise of the Warrants is not in the United States, is not a "U.S. person" and is not exercising the Warrants on behalf of, or for the account or benefit of a U.S. person or a person in the United States, did not execute or deliver this exercise form in the United States and delivery of the underlying Common Shares will not be to an address in the United States; OR |

---

B. ☐ the undersigned holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 (A) a U.S. person, (B) present in the United States, or (C) is acting on behalf of either
 a U.S. person or a person in the United States, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (a)
 is the original U.S. purchaser who purchased units from the Corporation of which the Warrants
 formed a constituent part pursuant to an executed Subscription Agreement including the U.S.
 Accredited Investor Certificate attached to the Subscription Agreement as Schedule B thereto
 in connection with its purchase of units, (b) is exercising the Warrants for its own account
 or for the account of a disclosed principal that was named in the Subscription Agreement
 pursuant to which it purchased such units, and (c) is, and such disclosed principal, if any,
 is an "accredited investor" as defined in Rule 501(a) of Regulation D under the
 U.S. Securities Act at the time of exercise of these Warrants and the representations and
 warranties of the holder made in the original Subscription Agreement including the U.S. Accredited
 Investor Certificate remain true and correct as of the date of exercise of these Warrants;
 OR

C. ☐ the undersigned holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 a U.S. Accredited Investor that is also a qualified institutional buyer as defined in Rule
 144A under the U.S. Securities Act (a "**QIB** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) (a)
 is the original U.S. purchaser who purchased units from the Corporation of which the Warrants
 formed a constituent part pursuant to an executed Subscription Agreement including the Qualified
 Institutional Buyer Letter attached to the Subscription Agreement as Schedule C thereto in
 connection with its purchase of units, (b) is exercising the Warrants for its own account
 or for the account of a disclosed principal that was named in the Subscription Agreement
 pursuant to which it purchased such units, and (c) is, and such disclosed principal, if any,
 is a "qualified institutional buyer" as defined in Rule 144A under the U.S. Securities
 Act at the time of exercise of these Warrants and the representations and warranties of the
 holder made in the original Subscription Agreement including the Qualified Institutional
 Buyer Letter remain true and correct as of the date of exercise of these Warrants; OR

D. ☐ the undersigned holder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is
 (A) a U.S. person, (B) present in the United States, or (C) is acting on behalf of either
 a U.S. person or a person in the United States; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 undersigned holder has delivered to the Corporation and the Corporation's transfer
 agent an opinion of counsel (which will not be sufficient unless it is in form and substance
 satisfactory to the Corporation) or such other evidence satisfactory to the Corporation to
 the effect that with respect to the securities to be delivered upon exercise of this Warrant,
 the issuance of such securities has been registered under the U.S. Securities Act and applicable
 state securities laws, or an exemption from the registration requirements of the U.S. Securities
 Act and applicable state securities laws is available..

"**United States**" and "**U.S. person**" are as defined in Regulation S under the U.S. Securities Act.

**Note: Certificates representing Common Shares will not be registered or delivered to an address in the United States unless Box (B), (C) or (D) above is checked.**

The undersigned hereby directs that the Common Shares subscribed for be registered and delivered as follows:

---

| | | |
|:---|:---|:---|
| **Name in Full** | **Address (Include Postal Code)** | **Number of Common Shares** |

---

In the absence of instructions to the contrary, the securities or other property will be issued in the name of or to the holder hereof and will be sent by first class mail to the last address of the holder appearing on the register maintained for the Warrants.

DATED the __________ day of ________________, 20___.

---

| |
|:---|
| (Signature of Warrantholder) |
| Print full name |
| Print full address |

---

**Instructions:**

1. If
 Box (D) is checked, any opinion tendered must be from counsel of recognized standing in form
 and substance reasonably satisfactory to the Corporation. Holders planning to deliver an
 opinion of counsel in connection with the exercise of the Warrants should contact the Corporation
 in advance to determine whether any opinions tendered will be acceptable to the Corporation.

2. The
 registered holder of a Warrant may exercise its right to convert the Warrant into Shares
 by completing and surrendering this Warrant Exercise Form and the ORIGINAL Warrant Certificate
 representing the Warrants being converted to the Corporation, together with the aggregate
 amount of the exercise price for the Shares, as provided for in the Warrant Certificate.

3. If
 this Warrant Exercise Form indicates that Shares are to be issued to a person or persons
 other than the registered holder of the Warrant to be converted: (i) the signature of the
 registered holder on this Warrant Exercise Form must be medallion guaranteed by an authorized
 officer of a chartered bank, trust company or an investment dealer who is a member of a recognized
 stock exchange, and (ii) the registered holder must pay to the Corporation all applicable
 taxes and other duties.

4. If
 this Warrant Exercise Form is signed by a trustee, executor, administrator, custodian, guardian,
 attorney, officer of a corporation or any other person acting in a fiduciary or representative
 capacity, this Warrant Exercise Form must be accompanied by evidence of authority to sign
 satisfactory to the Corporation.

## Exhibit 4.13

**Exhibit 4.13**

![](ex4-13_001.jpg)

![](ex4-13_002.jpg)

![](ex4-13_003.jpg)

![](ex4-13_004.jpg)

![](ex4-13_005.jpg)

![](ex4-13_006.jpg)

![](ex4-13_007.jpg)

![](ex4-13_008.jpg)

![](ex4-13_009.jpg)

![](ex4-13_010.jpg)

![](ex4-13_011.jpg)

![](ex4-13_012.jpg)

![](ex4-13_013.jpg)

## Exhibit 8.1

**Exhibit 8.1**

**Subsidiaries of A2Z Smart Technologies Corp.** 

---

| | |
|:---|:---|
| **Legal Name of Subsidiary** | **Jurisdiction of Organization** |
| A2Z Advanced Solutions Ltd | Israel |
| Isramat Ltd. | Israel |
| AAI Advanced Automotive Innovations Inc. | Ontario, Canada |
| A2Z Military Solutions Ltd | Israel |
| Cust2Mate Ltd | Israel |

---

## Exhibit 11.1

**Exhibit 11.1**

**A2Z SMART TECHNOLOGIES CORP.**

**Code of Business Conduct and Ethics**

**I.** **Purpose and Scope** 

The Board of Directors of A2Z Smart Technologies Corp., a company incorporated under the Business Corporations Act (British Columbia) (together with its subsidiaries, the "Company"), has adopted this Code of Business Conduct and Ethics (this "Code") to aid the Company's directors, officers and employees in making ethical and legal decisions when conducting the Company's business and performing their day-to-day duties.

The Company's Board of Directors (the "Board") or a committee of the Board is responsible for administering the Code. The Board has delegated day-to-day responsibility for administering and interpreting the Code to the Company's Chief Financial Officer, or his designee (such officer or designee, the "Compliance Officer"). If the last- designated Compliance Officer has ceased to be employed by the Company, please contact the Company's Chief Executive Officer with any questions you may have.

The Company expects its directors, officers and employees to exercise reasonable judgment when conducting the Company's business. The Company encourages its directors, officers and employees to refer to this Code frequently to ensure that they are acting within both the letter and spirit of this Code. The Company also understands that this Code will not provide an answer to every problem you may encounter or address every concern you may have about conducting the Company's business ethically and legally. In these situations, or if you otherwise have questions or concerns about this Code, the Company encourages you to speak with your supervisor (if applicable) or, if you are uncomfortable doing that, with the Compliance Officer.

The Company's directors, officers and employees generally have other legal and contractual obligations to the Company. This Code is not intended to reduce or limit the other obligations you may have to the Company. Instead, this Code should be viewed as imposing the *minimum standards* the Company expects from its directors, officers and employees in the conduct of the Company's business. Additional resources, including applicable policies, procedures, manuals and toolkits, are available through internal employee communication channels.

**II.** **Standards of Conduct** 

**A.** **Compliance with Laws, Rules and Regulations** 

The Company requires that all employees, officers and directors comply with all laws, rules and regulations applicable to the Company wherever it does business. Directors, officers and employees of the Company are expected to use good judgment and common sense in seeking to comply with all applicable laws, rules and regulations and to ask for advice when they are uncertain about them.

If you become aware of the violation of any law, rule or regulation by the Company, whether by its officers, employees, directors, or any third party doing business on behalf of the Company, it is your responsibility to promptly report the matter to your supervisor or to the Compliance Officer. Raising valid concerns helps the Company correct problems before they get bigger. It is our responsibility to speak up when something does not seem right, and our duty to act and report violations of law, rule, regulation or policy, as it helps us achieve the high standards that we set for ourselves. The Company is committed to a culture where each directors, officer and employee of the Company feels comfortable raising compliance concerns, and can expect every reported concern to be treated with care, and investigated thoroughly and discretely. While it is the Company's desire to address matters internally, nothing in this Code should discourage you from reporting any illegal activity, including any violation of the securities laws, antitrust laws, environmental laws or any other federal, state or foreign law, rule or regulation, to the appropriate regulatory authority. This Code should not be construed to prohibit you from testifying, participating or otherwise assisting in any state or federal administrative, judicial or legislative proceeding or investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Conflicts of Interest** 

The Company recognizes and respects the right of its directors, officers and employees to engage in outside activities that they may deem proper and desirable, provided that these activities do not impair or interfere with the performance of their duties to the Company or their ability to act in the Company's best interests. In most, if not all, cases this will mean that our directors, officers and employees must avoid situations that present a potential or actual conflict between their personal interests and the Company's interests.

A "conflict of interest" occurs when a director's, officer's or employee's personal interest interferes with the Company's interests. Conflicts of interest can arise in many situations. For example, conflicts of interest can arise when a director, officer or employee takes an action or has an outside interest, responsibility or obligation that can make it difficult for him or her to perform the responsibilities of his or her position objectively or effectively in the Company's best interests. Conflicts of interest can also occur when a director, officer or employee or his or her immediate family member receives some personal benefit (whether improper or not) as a result of the director's, officer's or employee's position with the Company. Each individual's situation is different and in evaluating his or her own situation, a director, officer or employee will have to consider many factors.

Any material transaction, responsibility, obligation, or relationship that reasonably could be expected to give rise to a conflict of interest should be reported promptly to the Compliance Officer, who may notify the Board or a committee of the Board as he or she deems appropriate. Actual or potential conflicts of interest involving a director or executive officer other than the Compliance Officer should be disclosed directly to the Compliance Officer. Actual or potential conflicts of interest involving the Compliance Officer should be disclosed directly to the Chief Executive Officer.

**C.** **Insider Trading** 

Employees, officers and directors who have material non-public information about the Company or other companies, including our suppliers and customers, as a result of their relationship with the Company are prohibited by law and Company policy from trading in securities of the Company or such other companies, as well as from communicating such information to others who might trade on the basis of that information.

If you are uncertain about the constraints on your purchase or sale of any Company securities or the securities of any other company that you are familiar with by virtue of your relationship with the Company, consult with the Compliance Officer before making any such purchase or sale.

**D.** **Confidentiality** 

Directors, officers and employees of the Company must maintain the confidentiality of confidential information entrusted to them by the Company or other companies, including our suppliers and customers, except when disclosure is authorized by a supervisor or legally mandated. Unauthorized disclosure of any confidential information is prohibited. Additionally, employees should take appropriate precautions to ensure that confidential or sensitive business information, whether it is proprietary to the Company or another company, is not communicated within the Company except to employees who have a need to know such information to perform their responsibilities for the Company.

Third parties may ask you for information concerning the Company. Subject to the exceptions noted in the preceding paragraph, employees, officers and directors (other than the Company's authorized spokespersons) must not discuss internal Company matters with, or disseminate internal Company information to, anyone outside the Company, except as required in the performance of their Company duties and, if appropriate, after a confidentiality agreement is in place. This prohibition applies particularly to inquiries concerning the Company from the media, market professionals (such as securities analysts, institutional investors, investment advisers, brokers and dealers) and security holders. All responses to inquiries on behalf of the Company must be made only by the Company's authorized spokespersons. If you receive any inquiries of this nature, you must decline to comment and refer the inquirer to your supervisor or one of the Company's authorized spokespersons.

You also must abide by any lawful obligations that you have to any former employer(s). These obligations may include restrictions on the use and disclosure of confidential information, restrictions on the solicitation of former colleagues to work at the Company and non-competition obligations.

**E.** **Honest and Ethical Conduct and Fair Dealing** 

You should endeavor to deal honestly, ethically and fairly with the Company's suppliers, customers, competitors and employees. Statements regarding the Company's products and services must not be untrue, misleading, deceptive or fraudulent. You must not take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair-dealing practice.

**F.** **Protection and Proper Use of Corporate Assets** 

Employees, officers and directors should seek to protect the Company's assets. Theft, carelessness and waste have a direct impact on the Company's financial performance. We work hard and play hard. This sometimes mean that we work at times when others seek to connect with us to conduct personal business. Limited, reasonable and customary personal use of Company assets and resources, devices and technology, including computers, telephones, email, networks and internet access is appropriate and acceptable, provided that such Company assets are always used in an ethical and legal manner. You should seek to protect the Company's assets at all times. Theft, carelessness, waste, and security breaches have a direct impact on the Company's financial performance, and we are all responsible for protecting the Company against loss or other misuses.

**G.** **Corporate Opportunities** 

Directors, officers and employees owe a duty to the Company to advance its legitimate business interests when the opportunity to do so arises. Each employee, officer and director is prohibited from:

● diverting to himself or herself or to others any opportunities that are discovered through the use of the Company's property or information or as a result of his or her position with the Company unless that opportunity has first been presented to, and rejected by, the Company;

● using the Company's property or information or his or her position for improper personal gain; or

● competing with the Company.

**H.** **Political Contributions/Gifts** 

Business contributions to political campaigns are strictly regulated by federal, state, provincial and local law in the Canada, U.S. and many other jurisdictions. Accordingly, all political contributions proposed to be made with the Company's funds must be coordinated through and approved by the Compliance Officer. Directors, officers and employees may not, without the approval of the Compliance Officer, use any Company funds for political contributions of any kind to any political candidate or holder of any national, state or local government office. Directors, officers and employees may make personal contributions, but should not represent that they are making contributions on the Company's behalf. Specific questions should be directed to the Compliance Officer.

**I.** **Bribes, Kickbacks and Other Improper Payments** 

The Company does not permit or condone bribes, kickbacks or other improper payments, transfers or receipts. No director, officer or employee should offer, give, solicit or receive any money or other item of value for the purpose of obtaining, retaining or directing business or bestowing or receiving any kind of favored treatment.

**J.** **Accuracy of Records** 

You must honestly and accurately report all business transactions. We are responsible for the accuracy of our records and reports. Accurate information is essential to the Company's ability to meet legal and regulatory obligations.

All Company books, records and accounts shall be maintained in accordance with all applicable regulations and standards and accurately reflect the true nature of the transactions they record. The financial statements of the Company shall conform to generally accepted accounting rules and the Company's accounting policies. No undisclosed or unrecorded account or fund shall be established for any purpose. No false or misleading entries shall be made in the Company's books or records for any reason, and no disbursement of corporate funds or other corporate property shall be made without adequate supporting documentation.

**K.** **Quality of Public Disclosures** 

It is the policy of the Company to provide full, fair, accurate, timely and understandable disclosure in reports and documents filed with, or submitted to, the Canadian Securities Administrators, the Securities and Exchange Commission and in other public communications.

**III.** **Compliance Procedures** 

**A.** **Communication of Code** 

All current directors, officers and employees are being supplied a copy of the Code. Future directors, officers and employees will be supplied a copy of the Code when beginning service at the Company. All directors, officers and employees will be expected to review and sign an acknowledgment regarding the Code on a periodic basis.

**B.** **Monitoring Compliance and Disciplinary Action** 

The Company's management, under the supervision of its Board or a committee of the Board shall take reasonable steps to (i) monitor compliance with the Code, and (ii) when appropriate, impose and enforce appropriate disciplinary measures for violations of the Code.

Disciplinary measures for violations of the Code will be determined in the Company's sole discretion and may include, but are not limited to, counseling, oral or written reprimands, warnings, probation or suspension with or without pay, demotions, reductions in salary, termination of employment or service, and restitution.

The Company's management shall periodically report to the Board or a committee of the Board on these compliance efforts including, without limitation, alleged violations of the Code and the actions taken with respect to violations.

**C.** **Communication Channels** 

*Be Proactive.* Every employee is encouraged to act proactively by asking questions, seeking guidance and reporting suspected violations of the Code and other policies and procedures of the Company, as well as any violation or suspected violation of law, rule or regulation resulting from the conduct of the Company's business or occurring on the Company's property. If an employee believes that actions have taken place, may be taking place, or may be about to take place that violate or would violate the Code or any law, rule or regulation applicable to the Company, you are obligated to bring the matter to the attention of the Company.

*Seeking Guidance.* The best starting point for officers or employees seeking advice on ethics-related issues or wishing to report potential violations of the Code will usually be their supervisor. However, if the conduct in question involves an officer's or employee's supervisor, if the officer or employee has reported the conduct in question to the supervisor and does not believe that the supervisor has dealt with it properly, or if the officer or employee does not feel comfortable discussing the matter with the supervisor, the officer or employee may raise the matter with the Compliance Officer.

*Communication Alternatives.* Any officer or employee may communicate with the Compliance Officer, or report potential violations of the Code, by any of the following methods:

● By e-mail to Gadi Levin (anonymity cannot be maintained);

● In writing (which can be done anonymously as set forth below under "Anonymity"), addressed to the Compliance Officer, by mail to A2Z Smart Technologies Corp., Harimon 108, Lev Hasharon, 4582500, Israel, Attn: Gadi Levin;

*Reporting Accounting and Similar Concerns.* Concerns or questions regarding potential violations of the Code, a Company policy or procedure or laws, rules or regulations relating to accounting, internal accounting controls, or auditing or securities law matters will be directed to the Audit Committee of the Board (the **"**Audit Committee") or a designee of the Audit Committee in accordance with the procedures established by the Audit Committee for receiving, retaining and treating complaints regarding accounting, internal accounting controls or auditing matters. Officers and employees can also communicate directly with the Audit Committee or its designee regarding such matters by the following methods (which can be done anonymously as set forth below under "Anonymity"):

● By e-mail to Gadi Levin (anonymity cannot be maintained);

● In writing (which can be done anonymously as set forth below under "Anonymity"), addressed to the Compliance Officer, by mail to A2Z Smart Technologies Corp., Harimon 108, Lev Hasharon, 4582500, Attn: Gadi Levin;

*Cooperation*. Employees are expected to cooperate with the Company in any investigation of a potential violation of the Code, any other Company policy or procedure, or any law, rule or regulation.

*Misuse of Reporting Channels.* Employees should not use these reporting channels in bad faith or in a false or frivolous manner or to report grievances that do not involve the Code or other ethics-related issues.

*Director Communications.* In addition to the foregoing methods, a director also can communicate concerns or seek advice with respect to this Code by contacting the Board through its Chairperson or the Audit Committee.

**D.** **Anonymity** 

The Company prefers that officers and employees, when reporting suspected violations of the Code, identify themselves to facilitate the Company's ability to take steps to address the suspected violation, including conducting an investigation. However, the Company also recognizes that some people may feel more comfortable reporting a suspected violation anonymously.

An officer or employee who wishes to remain anonymous may do so, and the Company will use reasonable efforts to protect confidentiality. If a report is made anonymously, however, the Company may not have sufficient information to investigate or evaluate the allegations. Accordingly, persons who report suspected violations anonymously should provide as much detail as they can to permit the Company to evaluate the allegation and, if it deems appropriate, conduct an investigation.

**E.** **No Retaliation** 

The Company forbids any retaliation against an officer or employee who, acting in good faith on the basis of a reasonable belief, reports suspected misconduct. Specifically, the Company will not discharge, demote, suspend, threaten, harass or in any other manner discriminate against, such an officer or employee. Anyone who participates in any such conduct is subject to disciplinary action, including termination.

**IV.** **Waivers and Amendments** 

No waiver of any provisions of the Code for the benefit of a director or an executive officer (which includes, without limitation, the Company's principal executive, financial and accounting officers) shall be effective unless (i) approved by the Board or, if permitted, the Audit Committee, and (ii) if required, the waiver is promptly disclosed to the Company's securityholders in accordance with applicable Canadian and U.S. securities laws and the rules and regulations of the exchange or system on which the Company's shares are traded or quoted, as the case may be.

Any waivers of the Code for other employees may be made by the Compliance Officer, the Board or, if permitted, the Audit Committee.

All amendments to the Code must be approved by the Board and, if required, must be promptly disclosed to the Company's securityholders in accordance with United States securities laws and Nasdat rules and regulations.

Adopted on:

**ACKNOWLEDGMENT**

I hereby acknowledge that I have read, that I understand and that I agree to comply with, the Code of Business Conduct and Ethics of A2Z Smart Technologies Corp. (the "**Company**"). I also understand and agree that I will be subject to sanctions, including termination of employment, that may be imposed by the Company, in its sole discretion, for violation of such Code of Business Conduct and Ethics.

---

| | | | |
|:---|:---|:---|:---|
| Date: | Signature: | | |
| | Name: |  | (Please Print) |
| | Title: | <u> </u> | |

---

## Exhibit 12.1

**Exhibit 12.1**

CERTIFICATIONS

I, Bentsur Joseph, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 20-F of A2Z Smart Technologies Corp.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: March 27, 2023

---

| |
|:---|
| */s/ Bentsur Joseph* |
| Bentsur Joseph |
| President and CEO |

---

## Exhibit 12.2

**Exhibit 12.2**

CERTIFICATIONS

I, Gadi Levin, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed this annual report on Form 20-F of A2Z Smart Technologies Corp.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the company as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The company's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the company and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Evaluated the effectiveness of the company's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)Disclosed in this report any change in the company's internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The company's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the company's auditors and the audit committee of the company's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the company's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)any fraud, whether or not material, that involves management or other employees who have a significant role in the company's internal control over financial reporting.

Date: March 27, 2023

---

| |
|:---|
| */s/ Gadi Levin* |
| Gadi Levin |
| Chief Financial Officer |

---

## Exhibit 13.1

**Exhibit 13.1**

**CERTIFICATIONS PURSUANT TO THE SARBANES-OXLEY ACT**

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Bentsur Joseph, Chief Executive Officer of A2Z Smart Technologies Corp. (the "Company") do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&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. This Annual Report on Form 20-F of the Company for the period ended December 31, 2022, as filed with the Securities and Exchange Commission (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; 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 information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 27, 2023

---

| |
|:---|
| */s/ Bentsur Joseph* |
| Bentsur Joseph |
| President and Chief Executive Officer |

---

## Exhibit 13.2

**Exhibit 13.2**

**CERTIFICATIONS PURSUANT TO THE SARBANES-OXLEY ACT**

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

I, Gadi Levin, Chief Financial Officer of A2Z Smart Technologies Corp. (the "Company") do hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. This Annual Report on Form 20-F of the Company for the period ended December 31, 2022, as filed with the Securities and Exchange Commission (the "Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: March 27, 2023

---

| |
|:---|
| */s/ Gadi Levin* |
| Gadi Levin |
| Chief Financial Officer |

---