# EDGAR Filing Document

**Accession Number:** 0001887689
**File Stem:** 0001575872-23-000356
**Filing Date:** 2023-3
**Character Count:** 1939550
**Document Hash:** 4db2cba0d1f59edfe04bb7a22525c05d
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001575872-23-000356.hdr.sgml**: 20240712

**ACCESSION NUMBER**: 0001575872-23-000356

**CONFORMED SUBMISSION TYPE**: DRS/A

**PUBLIC DOCUMENT COUNT**: 58

**FILED AS OF DATE**: 20230314

**DATE AS OF CHANGE**: 20230314

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** ADVEN INC.
- **CENTRAL INDEX KEY:** 0001887689
- **STANDARD INDUSTRIAL CLASSIFICATION:** INDUSTRIAL ORGANIC CHEMICALS [2860]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** A0
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** DRS/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 377-06561
- **FILM NUMBER:** 23732159

**BUSINESS ADDRESS:**
- **STREET 1:** 140 - 4TH AVENUE S.W.
- **STREET 2:** SUITE 2320
- **CITY:** CALGARY
- **STATE:** A0
- **ZIP:** T2P 3N3
- **BUSINESS PHONE:** (403) 875-2021

**MAIL ADDRESS:**
- **STREET 1:** 140 - 4TH AVENUE S.W.
- **STREET 2:** SUITE 2320
- **CITY:** CALGARY
- **STATE:** A0
- **ZIP:** T2P 3N3

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** NANO INNOVATIONS INC.
- **DATE OF NAME CHANGE:** 20211012

**Amendment No. 1 to Draft Registration Statement on Form F-1 confidentially submitted to** 

**the U.S. Securities and Exchange Commission on March 14, 2023.** 

**This draft registration statement has not been filed, publicly or otherwise, with the U.S. Securities and Exchange Commission, and all information herein remains strictly confidential.**

**Registration No. 333-**

**UNITED STATES** 

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM F-1**

**REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933**

**ADVEN INC.** 

(Exact name of Registrant as specified in its charter)

**Not Applicable**

(Translation of Registrant's name into English)

---

| | | |
|:---|:---|:---|
| **Alberta, Canada** | **2860** | **Not Applicable** |
| (State or other jurisdiction of<br> incorporation or organization) | (Primary Standard Industrial<br> Classification Code Number) | (I.R.S. Employer<br> Identification Number) |

---

**Suite 2320, 140 – 4th Avenue S.W.,** 

**Calgary, Alberta,** 

**Canada T2P 3N3**

**Telephone: (403) 875-2021**

(Address, including zip code, and telephone number, including area code, of Registrant's principal executive offices)

**Cogency Global Inc.<br> 122 East 42nd Street, 18th Floor**

**New York, NY 10168<br> (800) 221-0102**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

***Copies to:***

---

| | |
|:---|:---|
| **Ross D. Carmel, Esq.** <br> **Anthony A. Patel, Esq.**<br> **Carmel, Milazzo & Feil LLP**<br> **55 West 39th Street, 18th Floor**<br> **New York, NY 10018**<br> **Tel: 212-658-0458**<br> **Fax: (646) 838-1314** | **Joseph Lucosky, Esq.**<br>**Lucosky Brookman LLP** <br> **101 Wood Avenue South** <br> **Woodbridge, NJ 08830**<br> **Tel: (732) 395-4400**<br> **Fax: (732) 395-4401** |

---

**Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this registration statement.**

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

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

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

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

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

Emerging growth company ☒

If an emerging growth company that prepares its financial statements in accordance with U.S. GAAP, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards† provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

† The 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.

**The Registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the U.S. Securities and Exchange Commission, acting pursuant to said Section 8(a), may determine.**

**EXPLANATORY NOTE**

Pursuant to the applicable provisions of the Fixing America's Surface Transportation (FAST) Act, we are omitting unaudited interim financial statements for certain interim periods in 2022. While this financial information is otherwise required by Regulation S-X, we reasonably believe that it will not be required to be included in the prospectus at the time of the contemplated offering. We intend to amend this registration statement to include all financial information required by Regulation S-X at the date of such amendment before distributing a preliminary prospectus to investors.

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

**SUBJECT TO COMPLETION, DATED 2023**

**PRELIMINARY PROSPECTUS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Common Shares**

![](cm281_f1img01.jpg)

**ADVEN INC.** 

This is the initial public offering of common shares, no par value (each, a "Common Share," collectively, "Common Shares"), of AdvEn Inc., an Alberta, Canada corporation.

We anticipate the initial public offering price per share of Common Shares will be between $ and $. The public offering price of the Common Shares will be determined between the underwriters and us at the time of pricing, considering our historical performance and capital structure, prevailing market conditions, and overall assessment of our business. Therefore, the assumed public offering price per Common Share used throughout this prospectus may not be indicative of the actual public offering price for the Common Shares.

Currently, no public market exists for our Common Shares. We have applied to have our Common Shares listed on The Nasdaq Capital Market, ("Nasdaq"), under the symbol "ADVI." This offering is conditional upon the successful listing of our Common Shares on The Nasdaq Capital Market. If The Nasdaq Capital Market does not approve our listing application, this initial public offering will be terminated.

We are both an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act") and a "foreign private issuer" as defined under the U.S. federal securities laws and, as such, have elected to comply with certain reduced public company reporting requirements for this prospectus and future filings. See "*Prospectus Summary—Implications of Being an Emerging Growth Company and a Foreign Private Issuer*" for additional information.

**Investing in our Common Shares is highly speculative and involves a significant degree of risk. See "*Risk Factors*" beginning on page 14 of this prospectus for a discussion of information that should be considered before making a decision to purchase our Common Shares.**

**Neither the U.S. Securities and Exchange Commission (the "SEC") nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense.**

---

| | | |
|:---|:---|:---|
|  | **Per** <br> **Common<br> Share** | **Total** |
| Initial public offering price | $| $|
| Underwriting discount and commissions <sup>(1)</sup> | $| $|
| Proceeds, before expenses, to us | $| $|

---

 

&nbsp;&nbsp;&nbsp;&nbsp;(1) The underwriters will receive additional
 compensation in addition to such discounts and commissions, as further set forth under "*Underwriting*."

This offering is being conducted on a firm commitment basis. The underwriters are obligated to take and pay for all of the shares if any such shares are not taken. We have granted Spartan Capital Securities, LLC, the representative of the underwriters (the "Representative") a 45-day option to purchase up to an additional 15% of Common Shares at the initial public offering price, less underwriting discounts, and commissions, to cover over-allotments, if any.

The underwriters expect to deliver the Common Shares against payment in U.S. dollars in New York, New York, on or about , 2023.

***Sole Book Running Manager***

**Spartan Capital Securities, LLC**

 **

![](cm281_f1img02.jpg)

**The date of this prospectus is , 2023**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| **[PROSPECTUS SUMMARY](#a_001)** | **[3](#a_001)** |
| **[RISK FACTORS](#a_002)** | **[14](#a_002)** |
| **[SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](#a_003)** | **[44](#a_003)** |
| **[USE OF PROCEEDS](#a_004)** | **[45](#a_004)** |
| **[DIVIDEND POLICY](#a_005)** | **[45](#a_005)** |
| **[CAPITALIZATION](#a_006)** | **[45](#a_006)** |
| **[DILUTION](#a_007)** | **[46](#a_007)** |
| **[MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#a_008)** | **[48](#a_008)** |
| **[BUSINESS](#a_009)** | **[66](#a_009)** |
| **[MANAGEMENT](#a_010)** | **[76](#a_010)** |
| **[EXECUTIVE COMPENSATION](#a_011)** | **[82](#a_011)** |
| **[CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS](#a_012)** | **[84](#a_012)** |
| **[PRINCIPAL ShareHOLDERS](#a_013)** | **[85](#a_013)** |
| **[DESCRIPTION OF SHARE CAPITAL](#a_014)** | **[86](#a_014)** |
| **[SHARES ELIGIBLE FOR FUTURE SALE](#a_015)** | **[105](#a_015)** |
| **[UNITED STATES AND CANADIAN INCOME TAX CONSIDERATIONS](#a_016)** | **[107](#a_016)** |
| **[UNDERWRITING](#a_017)** | **[111](#a_017)** |
| **[EXPENSES RELATED TO THIS OFFERING](#a_018)** | **[116](#a_018)** |
| **[EXPERTS](#a_019)** | **[116](#a_019)** |
| **[LEGAL MATTERS](#a_020)** | **[116](#a_020)** |
| **[ENFORCEABILITY OF CIVIL LIABILITIES](#a_021)** | **[116](#a_021)** |
| **[WHERE YOU CAN FIND ADDITIONAL INFORMATION](#a_022)** | **[117](#a_022)** |
| **[INDEX TO CONSOLIDATED FINANCIAL STATEMENTS](#a_023)** | **[F-1](#a_023)** |

---

i

Please read this prospectus carefully. It describes our business, our financial condition, and our results of operations. We have prepared this prospectus so that you will have the information necessary to make an informed investment decision. You should rely only on the information contained in this prospectus or in any related free writing prospectus.

**We have not, and the underwriters have not, authorized anyone to provide you with information different from that contained in this prospectus or in any related free writing prospectus. We and the underwriters take no responsibility for and can provide no assurance as to the reliability of, any other information that others may give you. We are offering to sell, and seeking offers to buy, the Common Shares only in jurisdictions where offers and sales are permitted. This prospectus will be updated and made available for delivery to the extent required by the federal securities laws. The information contained in this prospectus is accurate only as of the date of this prospectus, regardless of the time of delivery of this prospectus or any sale of the Common Shares. Our business, financial condition, results of operations, and prospects may have changed since the date of this prospectus.**

For investors outside the United States: Neither we nor the underwriters have taken any action to permit a public offering of the Common Shares outside the United States or to permit the possession or distribution of this prospectus or any filed free writing prospectus outside the United States. Persons outside the United States who come into possession of this prospectus or any filed free writing prospectus must inform themselves about and observe any restrictions relating to the offering of the Common Shares and the distribution of the prospectus or any filed free writing prospectus outside the United States.

We are incorporated under the laws of Canada and most of our outstanding securities are owned by non-U.S. residents. Under the rules of the SEC, we currently qualify for treatment as a "foreign private issuer." As a foreign private issuer, we will not be required to file periodic reports and financial statements with the SEC as frequently or as promptly as domestic registrants whose securities are registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act").

**Until and including ______________, 2023 (the 25th day after the date of this prospectus), all dealers that buy, sell, or trade the Common Shares, whether participating in this offering, may be required to deliver a prospectus. This is in addition to the obligation of dealers to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.**

**TRADEMARKS** 

This prospectus includes our trademarks which are our property and are protected under applicable intellectual property laws. This prospectus also includes trademarks and trade names that are the property of other organizations. Solely for convenience, trademarks and trade names referred to in this prospectus appear without the <sup>®</sup> and <sup>™</sup> symbols, but those references are not intended to indicate that we will not assert, to the fullest extent under applicable law, our rights, or that the applicable owner will not assert its rights, to these trademarks and trade names. We do not intend our use or display of other companies' trade names or trademarks to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

**MARKET, INDUSTRY AND OTHER DATA**

We obtained the industry, market and competitive position data used throughout this prospectus from our own internal estimates and research, as well as from independent market research, industry and general publications and surveys, governmental agencies and publicly available information in addition to research, surveys and studies conducted by third parties. Internal estimates are derived from publicly available information released by industry analysts and third-party sources, our internal research and our industry experience, and are based on assumptions made by us based on such data and our knowledge of our industry and market, which we believe to be reasonable. In some cases, we do not expressly refer to the sources from which this data is derived. In that regard, when we refer to one or more sources of this type of data in any paragraph, you should assume that other data of this type appearing in the same paragraph is derived from the same sources, unless otherwise expressly stated or the context otherwise requires. In addition, while we believe the industry, market and competitive position data included in this prospectus is reliable and based on reasonable assumptions, such data involve risks and uncertainties and are subject to change based on various factors, including those discussed in "Risk Factors." These and other factors could cause results to differ materially from those expressed in the estimates made by third parties or by us.

**ABOUT THIS PROSPECTUS**

Throughout this prospectus, unless otherwise designated or the context suggests otherwise,

&nbsp;&nbsp;&nbsp;&nbsp;· all references to "AdvEn,"
 "Nano Innovations Inc.," the "Company," the "registrant," "we," "our,"
 or "us" in this prospectus mean AdvEn Inc. an Alberta, Canada corporation, and its wholly owned subsidiary AdvEn Industries
 Inc.;

· assumes an initial public
 offering price of our Common Shares of $ per share, the midpoint of the estimated range of $ to $ per
 share;

· "year" or "fiscal
 year" means the year ending December 31;

· all "$", "dollars", "CAD" "CDN$"
or "C$" refers to the Canadian dollars, the Company's functional currency;

· all "U.S. dollars," "USD" references, when used
in this prospectus, refer to the United States dollars;

· with respect to our financial
 statements, for the conversion of Canadian dollars to United States dollars, balance sheet items use spot rates on the balance sheet
 dates;

· unless otherwise specifically
 stated, the information in this prospectus does not consider the possible purchase of additional Common Shares pursuant to the exercise
 of the underwriters' over-allotment option; and

· all references to the "Securities
 Act" mean the United States Securities Act of 1933, as amended, and all references to the "Exchange Act" mean the
 United States Securities Exchange Act of 1934, as amended.

**PROSPECTUS SUMMARY**

 

*The following summary is qualified its entirety by, and should be read in conjunction with, the more detailed information and financial statements included elsewhere in this prospectus. In addition to this summary, we urge you to read the entire prospectus carefully, especially the risks of investing in our Common Shares, discussed under "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and the related notes, before deciding whether to invest in our Common Shares.*

*Unless otherwise indicated, all share amounts and per share amounts in this prospectus have been presented giving effect to a reverse split of our Common Shares at an approximate or rounded ratio of :1 share on [\*].*

**Overview** 

We are a pre-revenue emerging growth company located in Alberta, Canada. Through our wholly owned Alberta, Canada subsidiary, AdvEn Industries Inc., we are engaged in research, development and commercialization of advanced super activated carbon ("ASAC") and dry electrode super adhesive coating ("ESAC") technologies derived from refinery residues and heavy asphaltenes – the non-volatile components of crude oil, for use in various industrial and commercial applications with improved technical performance to the other products currently available on the global market. We convert asphaltenes into non-combustible products thereby diverting them from traditional waste streams such as fuel oil manufacturing, coking for steel and other heavy greenhouse gas emitting uses. We are near completing construction of our 36,000 square foot ASAC manufacturing facility and ESAC pilot plant in Nisku, Alberta with initial estimated production of 400 metric tons per year. ASAC is primarily used in super capacitor manufacturing, pharmaceutical manufacturing, industrial manufacturing, liquid and air purification, environmental protection, and food and beverage production. The ESAC pilot plant is intended to demonstrate the commercial viability for the electrode coating in super capacitors and as anode material in battery manufacturing. This type of material is commonly referred to as "dry electrode" technology by the super capacitor and battery industries and offers simplified manufacturing, lower capital and energy costs, and enhanced performance attributes.

Located in Alberta, Canada, our offices and manufacturing facility are in close proximity to several refineries where we source our primary raw materials. Additional chemical compounds used in our proprietary manufacturing systems are sourced locally, within North America and internationally depending on price, availability, and delivery times.

We will produce ASAC that is within customer specifications for the intended purpose of the final product. We will initially sell ASAC to customers who are primary manufacturers or original equipment manufacturers ("OEMs") producing sub-components for our target industry applications and initially to customers located in the People's Republic of China ("PRC") and within North America. We have identified customers and markets within Europe which we plan to pursue in 2023.

We are pre-revenue, however we received grant commitments from Sustainable Development Technology Canada ("SDTC") and Alberta Innovates ("AI") in the amounts of $4.04 million and $3.6 million respectively. The two grants are intended to partially finance our capital expenditures at our Nisku plant. In 2021, we received approximately $3.6 million in grants. We have also received $7.66 million (USD$5.65 million) through a convertible debenture spanning 2021 and 2022 for this project.

Since inception, we have received approximately $6.02 million from our principal shareholders.

We are currently engaged in multiple research and development projects to deliver high-performance technology for converting hydrocarbon resources to non-combustion product applications with superior performance attributes, lower-cost and reduced environmental impact to other asphaltene uses and to other companies producing activated carbon from organic sources such as wood, coconut husks, etc. These projects are qualified under the Scientific Research and Experimental Development Tax Incentive ("SR&ED") program administered by the Government of Canada. SR&ED credits are available to Canadian controlled private corporations and provide from 15-35% refundable tax credits on eligible expenses and from 8-20% in Alberta. The program applies to basic research, applied research or experimental development used to gain new knowledge or undertake a systematic understanding in a field of technology. In 2021, we were eligible for approximately $1.2 million in SR&ED credits which we applied as an offset to our research and development ("R&D") expenditures. We received additional subsidies totaling $0.1 million in 2021. As at December 31, 2021, we have invested approximately $10 million into the development of its ASAC and ESAC technologies, and as at the date of the prospectus, we are completing our first commercial ASAC plant with a capital budget of $16.1 million once completed. ESAC has advanced to the pilot stage and we are currently in construction of the pilot plant which is designed to produce 15 meters per minute of electrode film once operational. Overall capital budget for the ESAC project is approximately $2.2 million.

We have also been engaged in providing technical services to customers within Canada providing analysis and feasibility of various uses for refinery residues and the viability of these waste streams for activated carbon production using our proprietary technologies. We consider such contracts as an extension of our own internal R&D and have therefore accounted for them as an offset to direct R&D expenditures. We expect to continue to provide similar technical services to our customers if requested. We received $0.2 million in contract R&D services in 2021.

**Competitive Strengths** 

We will compete with our differentiated products both in the high quality super activated carbon industry and in the electrode coating business. Our business model allows us to compete directly with others, alternatively partner with competitors and customers, and also to license our technologies to third parties. We are carving out a premium niche from dominant industry companies, such as Kuraray Company, Ltd, with our ASAC technology while our ESAC will compete directly with, partner with or license to electric vehicles electrode manufacturers such as Contemporary Amperex Technology Co., Limited, LG Energy Solutions and Panasonic. We believe that the following competitive strengths have contributed to our success and will continue to differentiate us from our competitors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Proprietary, advanced, and transformational technology; nimble internal R&D team; and technical flexibility (we are not constrained by technologies in use since 1965);

&nbsp;&nbsp;&nbsp;&nbsp;· strategically
 placed facilities near our raw materials suppliers reducing supply and logistics costs;

&nbsp;&nbsp;&nbsp;&nbsp;· high-quality
 asphaltene source material;

&nbsp;&nbsp;&nbsp;&nbsp;· significantly
 lower greenhouse gas profile and sustainability attributes than competitors; and

&nbsp;&nbsp;&nbsp;&nbsp;· strong
 board, advisory, management and professional team with extensive industry experience.

**Intellectual Property**

Our intellectual property currently includes: (i) three patents, (ii) derivative technologies and trade secrets; and (iii) one trademark application for the Wordmark "AdvEn" in Canada and the U.S. filed on June 10, 2022.

On May 29, 2017, we filed for international utility patents for Activated Carbons with High Surface Areas and Methods of Making Same; the patent underlying our ASAC product. The patent describes how activated carbons with high surface areas can be produced through the synergistic activation at high temperatures using a predetermined combination of chemical activation agents. While most activated carbons are manufactured using either a high temperature system or a chemical activation agent, ASAC is manufactured using a hybrid of both methods. This patent has been granted in the United States, Europe, Saudi Arabia, India, Japan and Korea. We retain all trade secrets associated with this patent. This patent group expires 20 years from the date of filing on May 28, 2037.

On October 11, 2017, we filed for international utility patents for Conductive-Flake Strengthened, Polymer Stabilized Electrode Composition and Method of Preparing; the patent underlying our ESAC dry electrode pilot project. The patent describes the fabrication of an electrode film with a high tensile strength and low electrical resistance using conductive flakes to strengthen polymer stabilized particle electrodes. While most electrode films are manufactured using an expensive and energy intensive wet slurry method and are limited to a single pass through the coating equipment, ESAC uses a dry method of coating which reduces the capital expense, the physical footprint of manufacturing facilities, and energy consumption. This patent has been granted in the United States, China, Japan and Korea. This patent group expires 20 years from the date of filing on October 10, 2037.

We are a member of the Innovative Asset Collective ("IAC")<sup>1</sup>, an independent, membership based not-for-profit selected by the Canadian Government's Department of Innovation, Science and Economic Development to assist Canadian small and medium-sized enterprises in the data driven cleantech sector with their intellectual property needs. IAC provides Canadian businesses with intellectual property education and funding for trademark prosecution, patent filing, drafting, intellectual property consultation with law firms, software tools required to monitor existing intellectual property, and various other intellectual property related expenses. IAC also provides intellectual property insurance which covers up to $500,000 for the enforcement of our intellectual property and up to $1 million to defend our patents and trademarks.

**Growth Strategies** 

Our goal is to build a global technology leading company based on the development of advanced carbon-centric technologies with positive sustainability attributes. Accomplishing this goal requires the successful implementation of the following growth strategies:

&nbsp;&nbsp;&nbsp;&nbsp;· Complete
 the Nisku plant, demonstrate the consistency of our batch production system, increase the
 ASAC production capacity and establish additional ASAC facilities;

&nbsp;&nbsp;&nbsp;&nbsp;· Accelerate
 the product development cycle of ESAC, establish relationships with key manufacturers and
 OEMs, and expand ESAC's application to automotive batteries as well as supercapacitors;

&nbsp;&nbsp;&nbsp;&nbsp;· Establish
 and grow our customer base;

&nbsp;&nbsp;&nbsp;&nbsp;· Focus
 on products and innovations with growing demand; and

&nbsp;&nbsp;&nbsp;&nbsp;· Explore
 new business opportunities and research technologies related to the electrode and activated
 carbon industries.

**Our Challenges** 

We face risks and uncertainties in realizing our business objectives and executing our strategies, including those relating to:

&nbsp;&nbsp;&nbsp;&nbsp;· fully
 commercialized, the Nisku plant may not produce super activated carbon in the quantities,
 quality or with the specifications required by prospective customers;

&nbsp;&nbsp;&nbsp;&nbsp;· an
 interruption of supply or increases in the prices of raw materials;

<sup>1</sup> *https://www.ipcollective.ca/*

&nbsp;&nbsp;&nbsp;&nbsp;· our
 reliance on a small number of major customers;

&nbsp;&nbsp;&nbsp;&nbsp;· our
 reliance on a limited number of suppliers;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 coronavirus disease 2019 caused by the virus known as severe acute respiratory syndrome coronavirus
 2 ("COVID-19") or similar outbreaks;

&nbsp;&nbsp;&nbsp;&nbsp;· uncertainties
 as to the future of existing and planned environmental and health and safety laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;· timeliness
 and ability to implement new and advanced technologies;

&nbsp;&nbsp;&nbsp;&nbsp;· a
 failure to protect our intellectual property rights; and

&nbsp;&nbsp;&nbsp;&nbsp;· the
 effects of intense competition.

See "*Risk Factors*" and other information included in this prospectus for a discussion of these and other risks and uncertainties that we face.

Our wholly owned subsidiary, AdvEn Industries Inc. was incorporated under the Alberta Business Corporations Act (the "ABCA") on October 1, 2011.

On December 25, 2021, AdvEn Industries undertook a share exchange with AdvEn Inc. whereby 100% of the then-issued shares in AdvEn Industries were exchanged by the then-shareholders of AdvEn Industries for shares in the Company on a share-for-share (1-1) basis. At the time of the exchange, the Company existed under the Business Corporations Act, British Columbia, Canada (the "BCBCA") under the name "Nano Innovations Inc." The transaction has been accounted for as a reverse merger. AdvEn Industries was the acquiring entity for accounting purposes. The transaction was accounted for using the purchase method of accounting, the transaction was a recapitalization of the Company's capital structure. This resulted in the Company being the legal acquirer of AdvEn Industries.

The Company subsequently continued from the BCBCA to the ABCA on July 27, 2022 and, concurrent with the continuation, changed its corporate name to AdvEn Inc.

In connection with this offering, we have undertaken a reverse split on a 1: basis. Unless otherwise indicated, all references to Common Shares, options to purchase Common Shares, share data, per share data, and related information have been retroactively adjusted, where applicable, in this prospectus to reflect the forward split of our Common Shares as if it had occurred at the beginning of the earlier period presented.

**Our Corporate Structure**

The chart below illustrates our corporate structure as of the date of this prospectus:

For a more detailed description of our history and a diagram that illustrates our current corporate structure as of the date of this prospectus, see "*Corporate History and Structure*."

**Recent Developments**

*Continuation, Name Change and Quorum*

 

On July 18, 2022, our shareholders approved a motion to continue and change the jurisdiction of the Company from British Columbia, Canada to Alberta, Canada and change the Company's name from Nano Innovations Inc. to AdvEn Inc. with a corresponding adoption of bylaws ("Bylaws") which include, among other things, an increase to the quorum requirements for shareholder's meeting to 33 1/3% of shareholders present and entitled to vote at the meeting. The change was undertaken primarily to ensure the Company provided a diligent framework of governance that is similar to U.S. companies and to simplify and support the Company's brand identity as AdvEn<sup>™</sup>.

*Reverse Split*

On July 18, 2022, our shareholders approved the consolidation of the Common Shares at a consolidation ratio as required to enable the listing of the Common Shares on Nasdaq, which shall be between 1:1 and 1:10, with the final ratio to be determined by the directors of the Company as necessary to meet the listing requirements of Nasdaq (the "Share Consolidation"). On , our board of directors ("Board") approved a reverse split of the Common Shares at a ratio of :1. Unless otherwise indicated, all references to Common Shares, options to purchase Common Shares, share data, per share data, and related information have been retroactively adjusted, where applicable, in this prospectus to reflect the forward split of our Common Shares as if it had occurred at the beginning of the earlier period presented.

*Convertible Notes*

On November 25, 2022, we concluded our offering of secured convertible notes ("Notes"). From May 2022 through November 2022, we issued and sold secured Notes for aggregate proceeds of $1,083,806 under the same terms as our previously issued Notes.

The Notes mature on the earlier of nine (9) months following their issuance or upon the occurrence of the public offering of Common Shares of not less than USD$50 million, resulting in the listing for trading of the Common Share on the NYSE American, Nasdaq, The Nasdaq Global Market, The Nasdaq Global Select Market or the New York Stock Exchange ("Liquidity Event"). The Notes may be extended by three (3) months if a Liquidity Event is in process and contemplated. The conversion price of the Notes is discounted from the share price for Common Shares at the Liquidity Event by 35%. This offering constitutes a Liquidity Event under the terms of the Notes. Conversion of the Notes is at the option of the holder, and the Notes will not automatically convert in connection with the closing of this offering.

The Notes bear interest at 10% per annum payable upon maturity increasing to 15% if no Liquidity Event is in process or contemplated or in the event Notes are not converted or repaid within the term plus the extension period. The Notes are senior secured notes with specific security interest over all the assets of the Company excluding our intellectual property.

A warrant to purchase Common Shares ("Warrant") will be issued to Note holders following the conversion of the Notes to Common Shares at the Liquidity Event. Note holders have the right to purchase up to 50% of the number of Common Shares issued upon the full conversion of the Note calculated using 100% of the original principal amount plus any actual unpaid accrued interest on the Note divided by the exercise price at the Liquidity Event (the "Exercise Price"). The purchase price of one Common Share under the Warrant is equal to the Exercise Price. In the event of default or the maturity date is extended, the Warrants increase to 75% of the number of Common Shares issued upon the full conversion of the Note. In addition, the Warrants contain anti-dilution provisions for Exercise Price reductions should we issue equity or equity-like instruments at a lower per share price than the Exercise Price. The Warrants also contain a cash settlement provision based on the fair value of the Warrants in the event we sell more than 50% or more of our equities or assets. Warrants will not be issued if the Notes do not convert.

The face value and timing for our outstanding Notes are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Date Issued** | **Amount ($US)** | **BOC\*<br> Exchange at<br> issuance date** | **Amount ($CDN)\*** | **First Maturity<br> Date**  | **Extended<br> Maturity Date**  |
| **December 22, 2021** | 3000000 | 1.2865 | 3859500 | September 21, 2022 | December 21, 2022 |
| **January 14, 2022** | 1500000 | 1.2545 | 1881750 | October 13, 2022 | January 13, 2023 |
| **May 27, 2022** | 391051 | 1.2502 | 488892 | February 26, 2023 | May 26, 2023 |
| **September 9, 2022** | 475000 | 1.3035 | 619163 | June 8, 2023 | September 8, 2023 |
| **September 12, 2022** | 100000 | 1.2980 | 129800 | July 11, 2023 | September 11, 2023 |
| **October 17, 2022** | 100000 | 1.3730 | 137300 | July 16, 2023 | October 16, 2023 |
| **November 25, 2022** | 25000 | 1.3377 | 33442 | August 24, 2023 | November 24, 2023 |

---

\*Converted from United States currency to Canadian dollars as at the date of issue using Bank of Canada daily exchange rates *(https://www.bankofcanada.ca/rates/exchange/daily-exchange-rates/)*.

**Summary of Risks Factors** 

The following summarizes the principal factors that make an investment in our Company speculative or risky, all of which are more fully described in the section below titled "*Risk Factors*." This summary should be read in conjunction with the section below titled "*Risk Factors*" and should not be relied upon as an exhaustive summary of the material risks facing our business. The following factors could result in harm to our business, reputation, revenue, financial results, and prospects, among other impacts:

&nbsp;&nbsp;&nbsp;&nbsp;· We
 have incurred losses in every year since our inception and anticipate that we will continue
 to incur significant losses for the foreseeable future, which could harm our business and
 future prospects;

&nbsp;&nbsp;&nbsp;&nbsp;· We
 may not be able to produce super activated carbon in the quantities, of the quality or with
 the specifications required by the Company's prospective customers;

&nbsp;&nbsp;&nbsp;&nbsp;· We
 may never generate any revenue or become profitable or, if we achieve profitability, we may
 not be able to sustain it;

&nbsp;&nbsp;&nbsp;&nbsp;· If
 we are unable to continue to innovate, meet evolving market trends, adapt to changing customer
 demands and maintain our culture of innovation, our ability to sustain and grow our business
 may suffer;

&nbsp;&nbsp;&nbsp;&nbsp;· We
 will require substantial additional capital to finance our operations, which 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 certain of our drug development programs, commercialization
 efforts or other operations;

&nbsp;&nbsp;&nbsp;&nbsp;· As
 of December 31, 2022, we have concluded that we do not have sufficient cash to fund our operations
 through December 31, 2023, and as a result, there is substantial doubt about our ability
 to continue as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;· We
 may not be able to manage our growth;

&nbsp;&nbsp;&nbsp;&nbsp;· We
 operate in a highly competitive industry;

&nbsp;&nbsp;&nbsp;&nbsp;· We
 may not be able to obtain patents or other intellectual property rights necessary to protect
 our proprietary technology and business;

&nbsp;&nbsp;&nbsp;&nbsp;· Global
 economic conditions may have a material adverse effect on our business, financial condition
 and results of operations;

&nbsp;&nbsp;&nbsp;&nbsp;· Construction
 may interfere with our operations;

&nbsp;&nbsp;&nbsp;&nbsp;· We
 may infringe on or violate the intellectual property rights of others;

&nbsp;&nbsp;&nbsp;&nbsp;· If
 we are unable continually to enhance our current products and to develop, introduce and sell
 new products at competitive prices and in a timely manner, our business would be harmed;

&nbsp;&nbsp;&nbsp;&nbsp;· The
 price of our stock may be volatile, and you could lose all or part of your investment;

&nbsp;&nbsp;&nbsp;&nbsp;· Sales
 of a substantial number of our Common Shares by our existing shareholders in the public market
 could cause our stock price to fall;

&nbsp;&nbsp;&nbsp;&nbsp;· We
 may experience difficulties with our internal systems and controls during periods of growth;
 and

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

**Corporate Information**

 ****

Our principal executive offices are located at Suite 2320, 140 – 4th Avenue S.W., Calgary, Alberta, Canada T2P 3N3, and our telephone number at that address is 403-875-2021. ASAC manufacturing, the ESAC pilot lab and clean room, research and development and main operations team are located at the Company's 36,000 sq. ft. facility located at Unit 300, 3615 – 11th Street, Nisku, Alberta, T9E 1C6.

Our website address is *www.adveninc.com*. The information contained in, or accessible from, our website or any other website does not constitute a part of this prospectus. You should rely only on the information contained in this prospectus when deciding as to whether to invest in the Common Shares.

**Environmental Regulations**

Our operations are subject to local, provincial, and federal laws and regulations governing environmental quality and pollution control. To date, our compliance with these regulations has had no material effect on our operations, capital, earnings, or competitive position, and the cost of such compliance has not been material. We are unable to assess or predict at this time what effect additional regulations or legislation could have on our activities.

**Implications of Being an Emerging Growth Company and a Foreign Private Issuer** 

***Emerging Growth Company***

As a company with less than $1.235 billion in revenue during our last fiscal year, we qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 ("JOBS Act"). For so long as we remain an emerging growth company, we are eligible to utilize the following provisions of the JOBS Act that contain exceptions from disclosure and other requirements that otherwise are applicable to companies that conduct initial public offerings and file periodic reports with the SEC. These provisions include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;· not
 being required to comply with the auditor attestation requirements of Section 404 of the
 Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), the assessment of our
 internal control over financial reporting, which would otherwise be applicable beginning
 with the second annual report following the effectiveness of this registration statement;

&nbsp;&nbsp;&nbsp;&nbsp;· reduced
 disclosure obligations regarding executive compensation in our periodic reports, proxy statements
 and registration statements, including in this prospectus; and

&nbsp;&nbsp;&nbsp;&nbsp;· exemptions
 from the requirements of holding a nonbinding advisory vote on executive compensation and
 shareholder approval of any golden parachute payments not previously approved.

We will remain an emerging growth company until the first to occur of (i) December 31, 2028, (ii) the last day of the fiscal year in which we have total annual gross revenue of at least $1.235 billion, or (iii) the last day of the fiscal year in which we are deemed to be a "large accelerated filer," as defined in the Exchange Act, which means the market value of our Common Shares that are held by non-affiliates exceeds $700 million as of the last business day of the second financial quarter of such financial year; or, if it occurs before any of the foregoing dates, the date on which we have issued more than $1 billion in non-convertible debt over a three-year period.

We have elected to utilize certain of the reduced disclosure obligations in this prospectus and may elect to utilize other reduced reporting requirements in our future filings with the SEC. As a result, the information that we provide to our shareholders may be different than what you might receive from other public reporting companies in which you hold equity interests.

Under Section 107(b) of the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. Given that we currently report and expect to continue to report under the International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, we will not be able to avail ourselves of this extended transition period and, as a result, we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required by the International Accounting Standards Board ("IASB").

***Foreign Private Issuer***

We qualify as a "foreign private issuer" under U.S. securities laws. Even after we no longer qualify as an emerging growth company, as long as we qualify as a foreign private issuer under the Exchange Act, we will be exempt from compliance with certain laws and regulations of the SEC, including:

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

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

&nbsp;&nbsp;&nbsp;&nbsp;· the
 rules under the Exchange Act requiring the filing with the SEC of quarterly reports on Form
 10-Q containing unaudited financial and other specific information, or current reports on
 Form 8-K, upon the occurrence of specified significant events.

As a foreign private issuer, we are also permitted to follow home country corporate governance practices instead of certain corporate governance practices required by The Nasdaq Stock Market LLC ("Nasdaq") for U.S. domestic issuers. While we intend to follow most Nasdaq corporate governance listing standards, we intend to follow Canadian law for certain corporate governance practices in lieu of Nasdaq corporate governance listing standards as follows:

&nbsp;&nbsp;&nbsp;&nbsp;· exemption
 from the requirement to have a compensation committee and a nominating and corporate governance
 committee composed solely of independent members of the board of directors; and

&nbsp;&nbsp;&nbsp;&nbsp;· exemption
 from the Nasdaq corporate governance listing standards applicable to domestic issuers requiring
 disclosure within four business days of any determination to grant a waiver of the code of
 business conduct and ethics to directors and officers. Although we will require board approval
 of any such waiver, we may choose not to disclose the waiver in the manner set forth in the
 Nasdaq corporate governance listing standards, as permitted by the foreign private issuer
 exemption.

We intend to take all actions necessary for us to maintain compliance as a foreign private issuer under the applicable corporate governance requirements of the Sarbanes-Oxley Act, the rules adopted by the SEC and the Nasdaq corporate governance rules and listing standards.

Because we are a foreign private issuer, our officers, directors and principal shareholders are not subject to short-swing profit and insider trading reporting obligations under Section 16 of the Exchange Act. They will, however, be subject to the obligations to report changes in share ownership under Section 13 of the Exchange Act and related SEC rules.

We may utilize these exemptions until such time as we are no longer a foreign private issuer. We would cease to be a foreign private issuer at such time as more than 50% of our outstanding voting securities are directly or indirectly held of record by U.S. holders and any one of the following is true: (i) the majority of our executive officers or directors are U.S. citizens or residents; (ii) more than 50% of our assets are located in the United States; or (iii) our business is administered principally in the United States.

Both foreign private issuers and emerging growth companies are also exempt from certain more stringent executive compensation disclosure rules. Thus, even if we no longer qualify as an emerging growth company but remain a foreign private issuer, we will continue to be exempt from the more stringent compensation disclosures required of companies that are not emerging growth companies and will continue to be permitted to follow our home country practice on such matters.

**Impact of COVID-19**

The COVID-19 outbreak has adversely affected the economies and financial markets worldwide, and our business could be materially and adversely affected by the COVID-19 outbreak and any such other outbreak. Furthermore, our business may be adversely affected if continued concerns relating to COVID-19 continue to restrict travel, or result in the Company's personnel, vendors and services providers being unavailable to pursue their business objectives free of COVID-19 related restrictions. The extent to which COVID-19 impacts our business in the future will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions by different governments to contain COVID-19 or treat its impact, among others. If the disruptions caused by COVID-19 or other matters of global concern continue for an extended period of time, our ability to pursue our business objectives may be materially and adversely affected. In addition, our ability to raise equity and debt financing which may be adversely impacted by COVID-19 and other events, including as a result of increased market volatility, decreased market liquidity and third-party financing being unavailable on terms acceptable to us or at all.

**THE OFFERING**

---

| | |
|:---|:---|
| Issuer: | AdvEn Inc. |
| Securities being offered: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shares on a firm commitment basis, or Common Shares if the underwriter exercises its over-allotment option in full. |
| Offering price per share: | We currently estimate that the initial public offering price will be in the range of $ to $ per Common Share. |
| Over-allotment option: | We have granted the underwriters for 45 days from the date on which this registration statement is declared effective by the SEC to purchase up to an additional 15% of the total number of Common Shares offered hereby on the same terms as the other shares being purchased by the underwriters from us. |
| Shares outstanding before this offering: | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common Shares |
| Shares outstanding after this offering: | Common Shares (or Common Shares if the underwriters exercise the over-allotment option to purchase additional Common Shares in full). |
| Use of proceeds: | We estimate that the net proceeds to us from the sale of the Common Shares offered by us will be approximately $ or approximately $ if the underwriters' option to purchase additional shares to cover overallotments is exercised in full, based on an assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. We intend to use the proceeds from this offering to fund the expansion of the Nisku, Alberta, Canada ASAC manufacturing facility, for the pilot project to commercialize our ESAC technology and for research and development, working capital and general corporate purposes. See the section titled "*Use of Proceeds*" for additional information. |
| Lock-up Agreements: | We, our directors and executive officers and all other existing holders of 5.0% or more of our outstanding shares have agreed with the underwriters not to offer, issue, sell, encumber, transfer or otherwise dispose of any of the Common Shares for a period of 180 days after the completion of this offering without the consent of the Representative. See "*Underwriting*" for more information. |
| Listing: | We have applied to have our Common Shares listed on The Nasdaq Capital Market under the symbol "ADVI." No assurance can be given that our Nasdaq listing application will be approved, or that a trading market will develop for our Common Shares. We will not proceed with this offering if our application to list our Common Shares on Nasdaq is not approved. |
| Risk Factors: | Investing in our Common Shares is highly speculative and involves a significant degree of risk. As an investor, you should be able to bear a complete loss of your investment. You should carefully consider the information set forth in the "*Risk Factors*" section of this prospectus before deciding to invest in our Common Shares. |

---

---

| | |
|:---|:---|
| Representative's Warrant: | Upon the closing of this offering, we will issue to the Representative, a warrant (the Representative's Warrant") to acquire 8.0% of the aggregate number of Common Shares at an exercise price of 110% of the initial public offering price. The Representative's Warrant will be exercisable for a period of five years commencing 180 days after commencement of the sales by us of our Common Shares in this offering. |
| Dividends: | We do not anticipate paying dividends on our Common Shares for the foreseeable future. |
| Transfer Agent: | Odyssey Trust Company |

---

The number of the Common Shares to be issued and outstanding immediately after this offering as shown above assumes that all of the Common Shares offered hereby are sold, includes Common Shares that are to be issued upon the listing of our Common Shares on Nasdaq as a result of the conversion of the Notes and is based on Common Shares issued and outstanding as of March 31, 2023. This number excludes:

&nbsp;&nbsp;&nbsp;&nbsp;· shares of Common Shares reserved for issuance under our incentive option plan;

&nbsp;&nbsp;&nbsp;&nbsp;· Common Shares issuable upon the exercise of outstanding warrants, at exercise
prices ranging from $ to $, all of which were vested as of such date; and

&nbsp;&nbsp;&nbsp;&nbsp;· Common Shares issuable upon the exercise of outstanding options to directors,
employees and consultants under our incentive option plan, at a weighted average exercise price of $, of which were
vested as of such date.

Unless otherwise indicated, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;· no
 exercise of the warrants or options described above;

&nbsp;&nbsp;&nbsp;&nbsp;· no
 exercise of the underwriter's over-allotment option;

&nbsp;&nbsp;&nbsp;&nbsp;· no
 exercise of Representative's Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;· that
 the assumed offering price is $ which is the midpoint of the range of the estimated
 offering price described on the cover page of this prospectus.

**SUMMARY CONSOLIDATED FINANCIAL DATA**

*The following selected historical statements of operations for the fiscal years ended December 31, 2021 and 2020, and balance sheet data as of December 31, 2021 and 2020 have been derived from our audited consolidated financial statements for those periods. Our historical results are not necessarily indicative of the results that may be expected in the future. You should read this data together with our consolidated financial statements and related notes appearing elsewhere in this prospectus as well as "Management's Discussion and Analysis of Financial Condition and Results of Operations," appearing elsewhere in the prospectus.*

**Summary Consolidated Statement of Income and Comprehensive Income Data**

(In Canadian dollars, except number of shares)

---

| | | |
|:---|:---|:---|
|  | **For the<br> Year Ended<br> December 31,<br> 2021** | **For the<br> Year Ended<br> December 31,<br> 2020** |
|  | **(Audited)** | **(Audited)** |
| Revenues | $-- | $-- |
| Cost of revenues |  |  |
| Gross profit |  |  |
| Loss from operations | 3646959 | 836913 |
| Other non-operating loss (gain), net | (425956) | 35312 |
| Provision for income taxes |  |  |
| Total loss and comprehensive loss | $3221003 | $872225 |
| Loss per share, basic and diluted | $0.13 | $0.04 |
| Weighted average Common Shares outstanding | 25585032 | 20849349 |

---

**Summary Consolidated Balance Sheet Data**

(In Canadian dollars)

---

| | | |
|:---|:---|:---|
|  | **As at<br> December 31, 2021** | **As at<br> December 31, 2020** |
|  | **Actual**<br> **(Audited)** | **Actual**<br> **(Audited)** |
| Current assets | $4248769 | $2339585 |
| Total assets | $11001307 | $2740147 |
| Current liabilities | 5943720 | 1064206 |
| Total liabilities | $10218515 | $1089550 |
| Total shareholders' equity | $782792 | $1650597 |
| Total liabilities and shareholders' equity | $11001307 | $2740147 |

---

The pro forma and pro forma as adjusted information discussed above is illustrative only and will change based on the actual initial public offering price and other terms of this offering determined at pricing. A $1.00 increase (decrease) in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase (decrease) the pro forma amount of each of cash and cash equivalents, working capital, total assets and total shareholders' (deficit) equity by $, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, an increase (decrease) of 1,000,000 shares in the number of shares offered by us, as set forth on the cover page of this prospectus, would increase (decrease) the pro forma and the pro forma as adjusted amounts of each of cash and cash equivalents, working capital, total assets and total shareholders'(deficit) equity by $, assuming no change in the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us.

**RISK FACTORS**

*An investment in our Common Shares involves a high degree of risk. Before deciding whether to invest in our Common Shares, you should consider carefully the risks described below, together with all of the other information set forth in this prospectus, including the section titled "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our consolidated financial statements and related notes. If any of these risks actually occurs, our business, financial conditions, results of operations or cash flow could be materially and adversely affected, which could cause the trading price of our Common Shares to decline, resulting in a loss of all or part of your investment. The risks described below and in the other information in this prospectus referenced above are not the only ones that we face. Additional risks not presently known to us or that we currently deem immaterial may also affect our business. You should only consider investing in our Common Shares if you can bear the risk of loss of your entire investment.*

**Risks Related to Our Business and Industry**

 ****

***We are in the final construction phase of our first demonstration plant for our ASAC employing patented technologies and trade secrets.***

We have materially completed construction of the first commercial plant utilizing our patented technologies and trade secrets. There is no guarantee the plant will produce super activated carbon in the quantities, of the quality or with the specifications required by our prospective customers. While we have piloted our technology by producing individual kilograms for the past four years that meets or exceeds the expectations of potential customers, there is no guarantee the techniques, technologies or systems in the demonstration plant will provide the same results on a consistent basis when deployed to produce up to 400 metric tons of ASAC per annum. Furthermore, the precision measurements of our proprietary chemical activation media may not be possible at a larger scale and there is a risk of significant quality variation from batch-to-batch which may limit our ability to secure sales of super capacitor grade ASAC. If any of the planned systems or processes fail to operate as planned, the results could materially and adversely affect our business, financial results, and production targets.

***Increases in the prices of raw materials could materially and adversely affect our financial results.***

 ****

The primary raw material in our manufacturing process is a heavy oil derivative resulting from refinery production facilities. As such, it is affected by swings in commodity pricing for oil which are controlled by our suppliers and affected by global swings in oil prices. Oil prices, as a high demand global commodity, are affected by supply and demand, geopolitical forces, hedging and market speculation. If the prices we have to pay for raw materials under our existing supply contracts or under replacement supply contracts increase, we could face significantly higher production costs. Although our long-term supply contracts typically provide for a specific price, increases in raw material prices could adversely affect our ability to renew these contracts on similar terms or at all. Similarly, increases in raw material prices could adversely affect our ability to enter into shorter-term supply agreements at favorable prices. We may not be able to pass the whole price increase through to our customers, which could have a material adverse effect on our financial results.

***Our financial condition, results of operations, ASAC plant construction budget and cash flows for 2022 have been adversely affected by supply chain delays resulting from COVID-19.***

In December 2019, COVID-19 was first identified in Wuhan, the PRC. On March 11, 2020, the World Health Organization ("WHO") declared COVID-19 a pandemic – the first pandemic caused by a coronavirus. The outbreak has reached more than 160 countries, resulting in the implementation of significant government measures, including lockdowns, closures, quarantines, and travel bans, intended to control the spread of the virus. During this period, the Canadian government ordered quarantines, travel restrictions, and the temporary closure of restaurants, stores and other facilities.

Similarly, the Chinese provinces surrounding Shanghai, where we acquired the majority of its manufacturing equipment, were subject to travel quarantines, power restrictions, the temporary closure of stores and manufacturing facilities and shelter-in-place orders that restricted access to equipment manufacturing facilities by workers.

Shanghai and nearby provinces were limited in their power consumption from September through October 2021 which caused significant delays in the manufacturing of equipment. COVID-19-related interruptions also impacted manufacturers' ability to access steel and raw materials further delaying manufacturing. Manufacturing delays combined with measures to combat COVID-19, resulted in equipment orders made in 2021 being pushed six to eight months into 2022 and resulted in operating and shipping cost overruns. Although the manufacturing, shipping and transportation have started to recover since the end of December 2021, construction of our plant in Nisku, Alberta has been delayed more than six months and is an estimated $2.8 million over budget (excluding working capital during the delay) which has materially affected our cash flows, financial and operating results. We require additional investment capital to complete the plant and commence operations.

While we do not foresee any additional future impacts on the construction project in Nisku, the impact has delayed forecasted production and revenue targets for 2022 and into 2023. Any additional impact from COVID-19 or other global pandemics may further impact our plant commissioning and production of products, conversion of customers into sales and delay our growth plans. If COVID-19 further impacts our plant construction, commissioning, production and sales, our financial condition, results of operations, and cash flows could continue to be adversely affected.

Although the COVID-19 outbreak seems to be under relative control since May 2022, it may continue to materially adversely affect our business operations and financial condition, including but not limited to material negative impact on our projected revenue, slow collection of accounts receivables, and an additional allowance for doubtful accounts. Because of the significant uncertainties surrounding the COVID-19 outbreak, we cannot reasonably estimate the extent of the business disruption and the related financial impact of any future outbreak at this time.

 **

***We have a limited operating history, have incurred net losses since our inception, and anticipate that we will continue to incur significant losses for the foreseeable future. We may never generate any revenue or become profitable or, if we achieve profitability, may not be able to sustain it.***

 **

We are a technology-based material developer and manufacturer company with a limited operating history that may make it difficult to evaluate the success of our business to date and to assess our future viability. Our operations to date have been limited to organizing and staffing our Company, business planning, raising capital, developing, and optimizing our technology platform, identifying potential product candidates, undertaking research for our product candidates, establishing and enhancing our intellectual property portfolio, and providing general and administrative support for these operations.

To become and remain profitable, we must develop and eventually commercialize a product or products with significant market potential. This will require us to be successful in a range of challenging activities. We may never succeed in these activities and, even if we succeed in commercializing one or more of our product candidates, we may never generate revenue that is significant or large enough to achieve profitability. In addition, as a young business, we may encounter unforeseen expenses, difficulties, complications, delays and other known and unknown challenges. If we do achieve profitability, we may not be able to sustain or increase profitability on a quarterly or annual basis and we will continue to incur substantial research and development and other expenditures to develop and market additional product candidates. Our failure to become and remain profitable would decrease the value of the Company and could impair our ability to raise capital, maintain our research and development efforts, expand our business or continue our operations. A decline in the value of our Company could also cause our shareholders to lose all or part of their investment.

***We have concluded that we do not have sufficient cash to fund our operations through 12 months from the issuance date of our consolidated financial statements, and as a result, there is substantial doubt about our ability to continue as a going concern.***

Our ability to continue as a going concern is a result of ongoing operating losses and a lack of financing commitments to meet cash requirements. We have incurred recurring losses from operations in fiscal years 2020 and 2021, and while our working capital was positive as at December 31, 2020 and it was negative as at December 31, 2021. If we are unable to obtain funding, we will be required to delay, reduce or eliminate some or all of our research and development programs and efforts, which would adversely affect our business prospects, and the Company may be unable to continue operations. Although management continues to pursue plans to finance our continued operations, there is no assurance that we will be successful in obtaining sufficient funding on terms acceptable to us to fund continuing operations, or at all. After this offering, we may not raise the funding we require such that substantial doubt about our ability to continue as a going concern continues. If we seek additional financing to fund our business activities in the future and there remains substantial doubt about our ability to continue as a going concern, investors or other financing sources may be unwilling to provide additional funding on commercially reasonable terms or at all.

 ****

***Raising additional capital may cause dilution to our shareholders, including purchasers of Common Shares in this offering, restrict our operations or require us to relinquish rights to our technologies or product candidates.***

Until such time, if ever, as we can generate substantial product revenue, we expect to finance our operations through equity offerings, debt financings or other capital sources, including potentially grants, collaborations, licenses or other similar arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, our shareholders' ownership interest will be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of holders of our Common Shares. Additional debt financing, if available, may involve agreements that include covenants further limiting or restricting our ability to take specific actions, such as further limitations on our ability to incur additional debt, make capital expenditures or declare dividends.

If we raise funds through collaborations or licensing arrangements with third parties, we may have to relinquish valuable rights to our technologies, future revenue streams, research programs or product candidates or grant licenses on terms that may not be favorable to us. If we are unable to raise additional funds when needed, we may be required to delay, limit, reduce or terminate our product development or future commercialization efforts or grant rights to develop and market product candidates that we would otherwise prefer to develop and market ourselves.

***Our financial results could be materially and adversely affected by an interruption of supply of raw materials.***

We are dependent on a variety of raw materials (including refinery residues and chemicals for carbon activation) that support our manufacturing activities. Our ability to meet our customers' needs depends heavily on an uninterrupted supply of these materials. Although we source strategic raw materials from multiple suppliers whenever possible and have instituted backup procedures or contracted with a secondary supplier for any raw material that is sourced primarily from one location or supplier, production problems, lack of capacity, breach of contractual obligations by our third-party suppliers, changes in their financial or business condition or planned and unplanned shutdowns of their production facilities that affect their ability to supply us with raw materials that meet our specifications, or at all, could disrupt our ability to supply products to our customers.

In addition, interruptions in raw material supply caused by events outside our suppliers' control, such as wildfires, labor disputes, or transportation disruptions, could also disrupt our ability to meet customer demand. These supply disruptions could cause us to miss deliveries and breach our contracts, which could damage our relationships with our customers and subject us to claims for damages under our contracts. If any of these events were to occur for more than a temporary period, we may not be able to make arrangements for transition supply and qualified replacement suppliers on terms acceptable to us or at all, which could have a material adverse effect on our business and financial results.

***A majority of our advanced super activated carbon sales is expected to be from a small number of customers. If any of these customers experiences a material business disruption, we would likely incur substantial losses of revenue.***

We currently have non-binding letters of agreement from three potential customers in the super capacitor, industrial liquids and air filtration businesses. These three companies represent potential demand for 100% of our initial production capacity and one such potential customer may represent up to 50% of our initial production. While these prospective customers may change as we adjust marketing strategies, and any material business disruption affecting our major potential customers or any decrease in demand from our major potential customers may negatively impact our operations and cash flows if we fail to secure sales to other customers.

***We have sourced our raw materials primarily from a limited number of suppliers. If we lose one or more of the suppliers, our operation may be disrupted, and our results of operations may be adversely and materially impacted.***

We are in the process of fully commissioning its Nisku plant for the production of ASAC. For commissioning and the foreseeable future, we estimate that we will source 53%, 12%, and 12% of our raw materials from our top three suppliers, respectively. If we lose one or more of these suppliers and are unable to swiftly engage new suppliers, our production operation may be disrupted or even suspended, and we may not be able to deliver products to our customers on time. We may also have to pay a higher price to source from a different supplier on short notice. While we are actively searching for and negotiating with new suppliers, there is no guarantee that we will be able to locate appropriate new suppliers in our desired timeline. As a result, our results of operations may be adversely and materially impacted.

***A disruption or delay in commissioning and subsequent production at our Nisku facility could have a material adverse effect on our financial results.***

If our production facilities were unable to be commissioned to cease production unexpectedly in whole or in part, our sales and financial results could be materially and adversely affected. Such a disruption could be caused by a number of different events, including:

&nbsp;&nbsp;&nbsp;&nbsp;· maintenance
 outages;

&nbsp;&nbsp;&nbsp;&nbsp;· prolonged
 power failures;

&nbsp;&nbsp;&nbsp;&nbsp;· equipment
 failures or malfunctions;

&nbsp;&nbsp;&nbsp;&nbsp;· fires,
 floods, tornadoes, earthquakes, or other catastrophes;

&nbsp;&nbsp;&nbsp;&nbsp;· potential
 unrest or terrorist activities;

&nbsp;&nbsp;&nbsp;&nbsp;· labor
 difficulties; or

&nbsp;&nbsp;&nbsp;&nbsp;· other
 construction, design, or operational problems, including those related to the granting, or
 the timetable for granting, of permits.

If any of these or other events were to result in a material disruption of our current manufacturing operations, production of our products may be delayed and our ability to meet our production capacity targets and satisfy customer requirements may be materially adversely affected or we may be required to recognize impairment charges, any of which could have a material adverse effect on our financial results. In addition, a prolonged shutdown of any of our production facilities could cause us to miss deliveries and breach our contracts, which could damage our relationships with our customers and subject us to claims for damages under our contracts. Any of these events could have a material adverse effect on our business and financial results.

***We rely on third-party manufacturers to produce some of our activated carbon products and problems with, or loss of, these manufacturers could harm our business and operating results.***

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We may outsource some of our customer orders to third-party manufacturers to keep up with the demand for our activated carbon products. We face the risk that these third-party manufacturers may not produce and deliver activated carbon products on a timely basis, or at all. We may also experience difficulties with our third-party manufacturers since they do not have the same manufacturing processes or quality control as we do. These difficulties include reductions in the availability of production capacity, errors in complying with product specifications and regulatory and customer requirements, failures to meet production deadlines, failure to achieve our product quality standards, increases in costs of materials, and manufacturing or other business interruptions. The ability of our third-party manufacturers to effectively satisfy our production requirements could also be impacted by manufacturer financial difficulty or damage to their operations caused by fire, a terrorist attack, natural disasters, or other events. Although we carefully select third–party manufacturers, the failure of any manufacturer to perform to our expectations could result in supply shortages or delays for our activated carbon products and harm our business. If we experience significantly increased demand, or if we need to replace an existing manufacturer due to lack of performance, we may be unable to supplement or replace their manufacturing capacity on a timely basis, or identify manufacturers with the same or similar quality controls in place as the existing manufacturers do, or on terms that are acceptable to us, which may increase our costs, reduce our margins, and harm our ability to deliver our activated carbon products on time.

***We may incur additional delays and budget overruns with respect to a facility under construction. Any such delays or cost overruns may have a material adverse effect on our operating results.***

We are currently finalizing construction of a new facility in Nisku, Alberta, Canada. Such construction projects entail significant risks that can give rise to delays or cost overruns, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;· insufficient
 capital to complete construction;

&nbsp;&nbsp;&nbsp;&nbsp;· supply
 chain and logistics cost escalations or equipment delivery delays;

&nbsp;&nbsp;&nbsp;&nbsp;· shortage
 of material or skilled labor;

&nbsp;&nbsp;&nbsp;&nbsp;· unforeseen
 engineering, environmental, or geological problems;

&nbsp;&nbsp;&nbsp;&nbsp;· work
 stoppages;

&nbsp;&nbsp;&nbsp;&nbsp;· contractor
 disputes;

&nbsp;&nbsp;&nbsp;&nbsp;· weather
 interference;

&nbsp;&nbsp;&nbsp;&nbsp;· floods,
 typhoons, and other natural disasters;

&nbsp;&nbsp;&nbsp;&nbsp;· delays
 or failures in obtaining the requisite construction licenses, permits, and certificates;

&nbsp;&nbsp;&nbsp;&nbsp;· unanticipated
 cost increases; and

&nbsp;&nbsp;&nbsp;&nbsp;· legal
 or political challenges.

The anticipated costs and construction periods are based upon budgets, conceptual design documents, and construction estimates prepared by us in consultation with our engineers and contractors. Construction, equipment, staffing requirements, and problems or difficulties in obtaining and maintaining any of the requisite licenses, permits, allocations, or authorizations from regulatory authorities can increase the costs or delay the construction or commencement of production or otherwise affect the planned design and features of the facility. We cannot be sure that we will not exceed the budgeted costs of the facility or that the facility will commence production within the contemplated time frame, if at all. Budget overruns and delays with respect to the construction could have a material adverse impact on our results of operations.

***Uncertainties as to the future of existing and planned environmental and health and safety laws and regulations, as well as delays of or changes to these laws and regulations, could have a material adverse effect on demand for our products.***

Our strategic growth initiatives rely significantly upon the enactment of restrictive environmental and health and safety laws and regulations, particularly those that would require industrial facilities to reduce the quantity of air and water pollutants they release. If stricter regulations are delayed, are not enacted as proposed, are enacted but subsequently repealed or amended to be less strict or are enacted with prolonged phase-in periods, demand for our products could be materially and adversely affected and we may not be able to meet sales growth and return on invested capital targets, which could materially and adversely affect our financial results.

***Compliance with environmental and other laws and regulations could result in significant costs and liabilities.***

The operation and expansion of our manufacturing facilities are subject to strict environmental laws and regulations at the national, provincial, and local level in various jurisdictions, and, over the next several years, we expect that we and the industry in general will become subject to new or more stringent environmental requirements. These laws and regulations generally require us to obtain and comply with various environmental registrations, licenses, permits, inspections, and other approvals. As required by the current laws and regulations, we have obtained approval from Alberta Environment and Parks, under Section 44 of the Environmental Protection and Enhancement Act that an environmental impact assessment report is not required. However, Section 47 of the Environmental Protection and Enhancement Act allows the Minister of Environment and Parks the authority to order an environmental impact assessment report, resulting in some uncertainty to the exclusion. Under certain environmental, health, and safety laws, we could be held responsible for any and all liabilities and consequences arising out of past or future releases of restricted materials, human exposure to these substances, and other environmental damage, in some cases, without regard to fault. The discovery of contamination at our current site or at locations at which we dispose of waste may expose us to clean-up expenditures and other damages imposed by government agencies. In addition, private parties may have the right to pursue legal action to enforce compliance as well as to seek damages for non-compliance with such laws and regulations or for personal injury or property damage. Prior to July 31, 2022, the Company held CDN$2.5 million in environmental insurance that covered the construction of its Nisku plant and its research facilities. Subsequent to July 31, 2022, the Company has removed its environmental rider until such time as the Nisku plant is being fully commissioned at which time it is our intention to once again pick up the additional environmental insurance coverage. The proposed insurance covers certain environmental risks and costs as they apply to the non-intentional release of pollutants into the air, including noxious odors, and releases into the water system. Although we intend to review and update our environmental insurance in the future, such insurance may not cover all environmental risks and costs or may not provide sufficient coverage in the event an environmental claim is made against us.

Our operations emit carbon dioxide and other greenhouse gases. There are industrial standards in Canada that limit the amount of greenhouse gas emissions and is under the oversight of Environment and Climate Change Canada, Alberta Environment and Parks, and the municipal codes of Leduc County. A number of other legislative and regulatory measures to address greenhouse gas emissions, including the Kyoto Protocol and Canada's 2030 Emissions Reduction Plan, are in various phases of implementation or discussion. The systems and measures could result in increased costs for us to install new controls to reduce air emissions from our facilities, to purchase air emissions credits or allowances, or to monitor and inventory greenhouse gas emissions from our operations.

Even though we devote considerable efforts to comply with environmental laws, regulations, and permits, there can be no assurance that our operations will at all times be in compliance with them. The enactment of new environmental laws and regulations, the more stringent interpretation or enforcement of existing requirements, or the imposition of liabilities under environmental laws could force us to incur costs for compliance, capital upgrades, or liabilities relating to damage claims or limit our current or planned operations, any of which could have a material adverse effect on our business and financial results.

***Our operations are subject to various litigation risks that could increase our expenses and have a material adverse effect on our business and financial results.***

The nature of our operations exposes us to possible litigation claims, including environmental damage and remediation, intellectual property, workers' compensation and other employee-related matters, insurance coverage, and property rights and easements. Any claim could be adversely decided against us, which could have a material adverse effect on our business and financial results. Similarly, the costs associated with defending claims could dramatically increase our expenses as litigation is often very expensive, divert management's attention, and impact our profitability. If we become involved in any litigation, we may be forced to direct our resources to defending or prosecuting the claim, which in turn could have a material adverse effect on our business and financial results.

On August 29, 2022, the Alberta Government enacted Bill 37: The Builder's Lien (Prompt Payment) Amended Act, 2020 requiring project owners to pay general contractors within 28 days of receiving an invoice and sets a seven (7) day time limit for contractors to pay sub-contractors upon receipt of payment. While the legislation also provides an extended period for contractors to file liens, from 45 to 60 days, and a streamlined dispute resolution mechanism, the reduced payment timeline could materially and adversely affect our cash flows and increase contingency requirement for capital projects in Alberta.

***We may not be able to keep up with competitive changes affecting the super activated carbon industry or advances in super capacitor and lithium-ion battery electrode technologies.***

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The super activated carbon industry is characterized by evolving industry and end-market standards, changing regulation, frequent enhancements to existing products and technologies, introduction of new products and changing customer demand, all of which can result in unpredictable product transitions, shortened lifecycles and increased importance of being first to market with new products.

Similarly, the electrode technology market enjoys uncharacteristically large investments into research, and highly competitive technology development, focused on super capacitor and battery performance, particularly as it applies to the automotive sector. While adoption of new automotive technology is measured in multi-year cycles due to industry safety requirements, liability concerns and reputation, we are in the pilot stage of development for our electrode technologies and has not yet introduced its pilot products to potential customers.

The success of our new products depends on their initial and continued acceptance by our customers. If we are not able to anticipate changes or develop and introduce new and enhanced products that are accepted by our customers on a timely basis and compete with new technologies, our ability to remain competitive may be adversely affected. In addition, we may experience difficulties in the research, development, production, or marketing of new products, which may delay us in bringing new products to market and prevent us from recouping or realizing a return on our investments. Any of the foregoing could have a material adverse effect on our business and financial results.

***The carbon pre-cursor industry is highly competitive, and if we are unable to compete effectively with existing competitors, or with new entrants, our business and financial results could be materially and adversely affected.***

We will compete in the global market, and in markets where our potential customers operate, with other producers of super activated carbon, carbon pre-cursors and electrode components. Our business faces significant competition from other producers of super activated carbon, some of which may from time to time have revenue and capital resources exceeding ours, which they may use to develop more advanced or more cost-effective technologies, increase market share, or leverage their distribution networks. In addition, new competitors and alliances may emerge to take market share away from us. Our competitive position in the market in which we operate depends upon the relative strength of these competitors in the market and the relative resources they devote to competing in the market. We could experience reduced sales and loss of market share, which could lead to lower prices and decreased revenue, gross margins and profits, any of which could have a material and adverse effect on our results of operations.

***Development of competitive technologies could materially and adversely affect our business and financial results.***

Super activated carbon is utilized in various applications as a cost-effective solution to address our customers' needs. If other competitive technologies or alternative processes or combinations of technologies or processes, such as alternate sorbents, resins, certain types of membranes, ozone, and ultraviolet, alternative electrolytes or material changes to electrode constituents which are advanced to the stage at which they could compete on a cost-effective basis with activated carbon technologies, we could experience a decline in demand for our products, which could have a material adverse effect on our business and financial results.

Competitive technologies and new regulations may also affect our customers, and therefore us. For example, a shift away from the use of super capacitors due to environmental trends and regulations or new technologies could diminish future demand for our activated carbon products, which could have a material adverse effect on our business and financial results.

***If we fail to hire, train, and retain qualified managerial and other employees, our business and results of operations could be materially and adversely affected.***

We place substantial reliance on the super activated carbon and biomass electricity market experience and knowledge of our senior management team as well as their relationships with other industry participants. We do not carry, and do not intend to procure, key person insurance on any of our senior management team. The loss of the services of one or more members of our senior management team due to their departure, or otherwise, could hinder our ability to effectively manage our business and implement our growth strategies. Finding suitable replacements for our current senior management could be difficult, and competition for such personnel of similar experience is intense. If we fail to retain our senior management, our business and results of operations could be materially and adversely affected.

The market for engineers and other individuals with the required technical expertise to succeed in our business is highly competitive. There may be a limited supply of qualified individuals in Alberta, Canada, where we periodically compete with large oil and gas companies that have operations here, and in other cities into which we intend to expand. We must hire and train qualified managerial and other employees on a timely basis to keep pace with our rapid growth while maintaining consistent quality of services across our operations in various geographic locations. We must also provide continuous training to our managerial and other employees so that they are equipped with up-to-date knowledge of various aspects of our operations and can meet our demand for high-quality products. If we fail to do so, the quality of our products may decrease in one or more of the markets where we operate, which in turn, may cause a negative perception of our brand and adversely affect our business.

***We depend on third parties for certain construction, maintenance, engineering, transportation, warehousing, and logistics services.***

We contract with third parties, typically for a period of three (3) to twelve (12) months, for certain services relating to the design, construction, and maintenance of various components of our production facilities and other systems. If these third parties fail to comply with their obligations, we may experience delay in the completion of new facilities or expansions of existing facilities or the facilities may not operate as intended, which may result in delays in the production of our products and materially and adversely affect our ability to meet our production capacity targets and satisfy customer requirements or we may be required to recognize impairment charges. In addition, production delays could cause us to miss deliveries and breach our contracts, which could damage our relationships with our customers and subject us to claims for damages under our contracts. Any of these events could have a material adverse effect on our business and financial results.

We also rely primarily on third parties for the transportation of the products we manufacture. We intend to enter into one to two years. If any of the third parties that we use to transport products are unable to deliver the goods we manufacture in a timely manner, we may be unable to sell these products at full value, or at all, which could cause us to miss deliveries and breach our contracts, which could damage our relationships with our customers and subject us to claims for damages under our contracts. Any of these events could have a material adverse effect on our business and financial results.

***If we are unable to continue to innovate, meet evolving market trends, adapt to changing customer demands and maintain our culture of innovation, our ability to sustain and grow our business may suffer.***

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The ongoing success of our business depends on our ability to continue to introduce innovative logistics solutions and services, and technological applications, to meet evolving market trends and satisfy changing customer demands. We must continue to adapt by continuing innovation, improving our services and modifying our strategies, which could cause us to incur substantial costs. We may not be able to continue to innovate or adapt to changing market and customer needs in a timely and cost-effective manner, if at all. This could adversely impact our ability to expand our ecosystem and grow our business. Failure to develop new services to meet evolving market demands through innovation could cause us to lose current and potential customers and harm our operating results and financial condition.

In addition, we may not be able to maintain our culture of innovation, which has been critical to our success and has helped us create value for our shareholders, succeed as a leader in our industry and attract, retain and motivate employees and other ecosystem participants. Among other challenges, we may not be able to identify and promote people in leadership positions who share our culture and can always focus on technology and innovation. Competitive pressure may also cause us to move in directions that may divert us from our mission, vision and values. If we cannot maintain our culture of innovation, our long-term business prospectus could be materially and adversely affected.

***Future acquisitions may have an adverse effect on our ability to manage our business.***

We may acquire businesses, technologies, services, or products which are complementary to our core super activated carbon and future electrode component businesses. Future acquisitions may expose us to potential risks, including risks associated with: the integration of new operations, services and personnel; unforeseen or hidden liabilities; the diversion of resources from our existing business and technology; our potential inability to generate sufficient revenue to offset new costs; the expenses of acquisitions; or the potential loss of or harm to relationships with both employees and customers resulting from our integration of new businesses.

Any of the potential risks listed above could have a material and adverse effect on our ability to manage our business, our projected revenue, and net income. We may need to raise additional debt funding or sell additional equity securities to make such acquisitions. The raising of additional debt funding by us, if required, would result in increased debt service obligations and could result in additional operating and financing covenants, or liens on our assets, that would restrict our operations. The sale of additional equity securities could result in additional dilution to our shareholders.

***Our executive officers have no prior experience in operating a U.S. public company, and their inability to operate the public company aspects of our business could harm us.***

Our executive officers have no experience in operating a U.S. public company, which makes our ability to comply with applicable laws, rules, and regulations uncertain. Our failure to comply with all laws, rules, and regulations applicable to U.S. public companies could subject us or our management to regulatory scrutiny or sanction, which could harm our reputation and share price.

***Our success depends largely on the acquisition of, as well as the continued availability and service of, key personnel.***

Much of our future success depends on the continued availability and service of key personnel, including our Chief Executive Officer and senior executive management team as well as highly skilled employees in technical, marketing and staff positions. Due to the complexity and immaturity of the technologies involved in the products we produce and the markets we serve, we may be unable to find the right personnel with the background needed to serve our goals and objectives. As a market leader for the technologies we develop, there are limited opportunities to hire personnel from competitors or other technology companies with substantial backgrounds and experience in our technology fields. Consequently, we seek to hire individuals who are capable of performing well in an environment with limited resources and references to past experiences. We may struggle to find such talented personnel who also thrive in a high growth business atmosphere and who are capable of keeping pace with the rapidly changing environment encouraged by the technologies we create and the markets we serve. These uniquely talented personnel are in high demand in the technology industry and competition for acquiring such individuals is intense. Some of our scientists and engineers are the key developers of our products and technologies and are recognized as leaders in their area of expertise. Without attracting and retaining personnel with the appropriate skill sets, we could fail to maintain our technological and competitive advantage.

***Our products and services may experience quality or implementation problems from time to time that could result in decreased sales and operating margin and could tarnish our reputation.***

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Our dry battery electrode technology is new, and our supercapacitor products also represent a relatively new technology, in each case which could contain defects in design or manufacture or could be implemented incorrectly in the end use application. As a direct consequence of the introduction of new features for our technology as well as new implementations by our customer base, we are still learning about the potential quality issues that could arise during operation in certain applications. Consequently, we are not always capable of anticipating the quality or implementation problems which the products may experience in the field. Products sold into high performance environments such as heavy transportation, automotive markets or grid infrastructure installations could experience additional operating characteristics that could unexpectedly interfere with the intended operation of our products. For example, if the end use application is in an environment which subjects the products to levels of vibration above our internal design and qualification levels, then the products could fail to achieve the customer's performance requirements. With this sometimes-limited understanding of the application and operation of our products in varying end user implementations, our customers may perceive our products as exhibiting quality problems, which could harm our reputation. We strive to respond quickly in addressing the concerns of our customers by modifying our products and assisting our customers in designing new implementation or installation strategies to achieve higher performance characteristics or to satisfy new or modified applications of our products. As such, the release time of next generation products or application solutions can be relatively quick, and we may assume additional risks associated with expediting the release of new or modified products.

We are also building our infrastructure to adequately and efficiently handle any potential recall and the reverse logistics involved in returning our products to our facilities in the event that any defects are found. There can be no assurance that we will be able to detect and fix all defects in the products we sell or will be able to efficiently handle all issues related to product returns or implementation concerns. As we continue to pursue additional vertical markets, we are gaining a better understanding of certain business practices of these markets with respect to potential product recalls. For example, certain portions of the transportation industry are sensitive to product recall issues as they relate to both government regulations as well as customer satisfaction and safety. Failure to successfully prevent a defect in our products which prompts a recall or a failure to successfully manage expenses associated with any recalls could cause lost revenue, harm to our reputation, and significant warranty and other expenses, and result in an adverse impact on our financial condition and operating results.

***Our inability to effectively identify, enter into, manage and benefit from strategic alliances, may limit our ability to pursue certain growth objectives and/or strategies.***

Our reputation is important to our growth and success. We recognize the value in identifying, selecting and managing key strategic alliances. We are mainly focusing our business on the specific products we deliver and pursuit of strategic alliances with other companies could allow us to provide customers with integrated or other new products, services, or technology advancements derived from the alliances. To be successful, we must first be able to define and identify opportunities which align with our growth plan. Additionally, we cannot be certain that our alliance partners will provide us with the support we anticipate, that such alliance or other relationships will be successful in advancing technology, or that any alliances or other relationships will be successful in manufacturing and marketing new or improved products. Our success is also highly dependent upon our ability to manage the respective parameters of all strategic alliances, promote the benefits to us, and to not prohibit or discourage other opportunities which may be beneficial to us in the future. Also, certain provisions of alliance agreements may include restrictions that limit our ability to independently pursue or exploit the developments under such strategic alliances. Currently, we have alliances with several partners both in the Canada and throughout the world. We anticipate that future alliances may also be with foreign partners or entities. As a result, such alliances may be subject to the political climate and economies of the foreign countries where such partners reside and operate. If the strategic alliances we pursue are not successful, our business and prospects could be negatively affected.

***Should a catastrophic event or other significant business interruption occur at any of our facilities, we could face significant reconstruction or remediation costs, penalties, third-party liability and loss of production capacity, which could adversely affect our business.***

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Weather conditions, natural disasters or other catastrophic events could cause significant disruptions in operations, including, specifically, disruptions at our manufacturing facilities or those of our major suppliers or customers. In turn, the quality, cost and volumes of the products we produce and sell could be unexpectedly, negatively affected, which will impact our sales and profitability. Natural disasters or industrial accidents could also damage our manufacturing facilities or infrastructure, or those of our major suppliers or major customers, which could affect our costs, production volumes and demand for our products. However, we have implemented certain mitigation strategies to ensure that certain components and processes involved in the manufacture of our component materials and finished goods are somehow temporarily available so as to reduce the impact of such a catastrophic event.

War, terrorism, geopolitical uncertainties, public health issues, and other business interruptions have caused and could cause damage or disruption to international commerce and the global economy, and thus could have a strong negative effect on us, our suppliers, logistics providers, manufacturing partners and customers. Our business operations could be subject to interruption by power shortages, terrorist attacks and other hostile acts, labor disputes, public health issues, and other events beyond our control. Such events could decrease demand for our products, make it difficult or impossible for us to produce and deliver products to our customers, or to receive components from our suppliers, thereby creating delays and inefficiencies in our supply chain. Should major public health issues, including pandemics, arise, we could be negatively affected by more stringent employee travel restrictions, additional limitations in freight services, governmental actions limiting the movement of products between regions, and disruptions in the operations of our manufacturing partners and component suppliers. The majority of our research and development activities, our corporate headquarters, information technology systems, and other critical business operations, including certain component suppliers and manufacturing partners, are in locations that could be affected by natural disasters. In the event of a natural disaster, losses could be incurred, and significant recovery time could be required to resume operations and our financial condition and operating results could be materially adversely affected. While we may purchase insurance policies to cover the direct economic impact experienced following a natural disaster occurring at one of our own facilities, there can be no assurance that such insurance policies will cover the full extent of our financial loss nor will they cover losses which are not economic in nature such as, for example, our business and reputation as a reliable supplier.

***We may be subject to information technology systems failures, network disruptions, breaches in data security and computer crime and cyber-attacks.***

Information technology system failures, network disruptions, breaches of data security and sophisticated and targeted computer crime and cyber-attacks could disrupt our operations by impeding the manufacture or shipment of products, the processing of transactions or reporting of financial results, or by causing an unintentional disclosure of confidential information. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance, or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. In the ordinary course of our business, we collect and store sensitive data in our data centers and on our networks, including intellectual property, proprietary business information, and personal information of our business partners and employees. Despite our efforts to protect sensitive, confidential or personal data or information, our facilities and systems and those of our third-party service providers may be vulnerable to security breaches, theft, misplaced or lost data, programming and/or human errors that could potentially lead to the compromising of sensitive, confidential or personal data or information, improper use of our systems, software solutions or networks, unauthorized access, use, disclosure, modification or destruction of information, defective products, production downtimes and operational disruptions, which in turn could adversely affect our reputation, competitiveness and results of operations. While management has taken steps to address these concerns by employee training, implementing certain data and system redundancy, hardening and fail-over along with other network security, comprehensive monitoring of our networks and systems, maintenance of backup and protective systems and other internal control measures, there can be no assurance that the measures we have implemented to date would be sufficient in the event of a system failure, loss of data or security breach. As a result, in the event of such a failure, loss of data or security breach, our financial condition and operating results could be adversely affected.

***Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.***

In the ordinary course of our business, we collect and store sensitive data, including intellectual property, our proprietary business information and that of our customers, suppliers and business partners, and personally identifiable information of our customers and employees, in our data centers and on our networks. The secure processing, maintenance and transmission of this information is critical to our operations and business strategy. Despite our security measures, our information technology and infrastructure may be vulnerable to attacks by hackers or breached due to employee error, malfeasance or other disruptions. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings, liability under laws that protect the privacy of personal information, regulatory penalties, disruption of our operations and the services we provide to customers, and damage to our reputation, which could adversely affect our financial results and competitive position.

***Our ability to match our production plans for our supercapacitor products to the level of product actually demanded by customers has a significant effect on our sales, costs and growth potential.***

Customers' decisions are affected by market, economic and government regulation conditions which can be difficult to accurately gauge in advance. In addition, many of the markets for our ultracapacitor products are within emerging industries as well as within project-oriented business models and, as such, it can be difficult to predict our future customer demand. Failure to provide customers and channel partners with demanded quantities of our products could reduce our sales. Conversely, increased capacity which exceeds actual customer demands for our products increases our costs and, consequently, reduces our profit margins on the products delivered. Although we have implemented policies and procedures for refining our forecasting methods, including a more sophisticated mechanism for gauging the sales pipeline to better project timing of new customer demand, there can be no assurance that these policies and procedures will provide accurate intelligence to align our production plans with customer demands. As a result of all of these factors, we could fail to meet revenue or profit margin targets.

***If our products fail to comply with consumer product or environmental laws, it could materially affect our financial performance.***

Because our products are subject to environmental regulations in some jurisdictions in which we do business, we must comply with a variety of product safety, product testing and environmental regulations, including compliance with applicable laws and standards with respect to lead content and environmental issues. If our products do not meet applicable safety or regulatory standards, we could experience lost sales, diverted resources and increased costs, which could have a material adverse effect on our financial condition and results of operations. Events that give rise to actual, potential or perceived product safety or environmental concerns could expose us to government enforcement action or private litigation and result in product recalls and other liabilities. In addition, negative consumer perceptions regarding the safety of our products could cause negative publicity and harm our reputation.

**Risks Related to Doing Business in Canada**

***We are exposed to currency exchange risk which could cause our reported earnings or losses to fluctuate.***

The value of the Canadian dollars, or CAD, against the U.S. dollar fluctuates and is affected by, among other things, changes in political and economic conditions in Canada as well as the global economy. We can offer no assurance that the CAD will be stable against the U.S. dollar or any other foreign currency.

Our functional currency is the Canadian dollar. However, many of our assets, liabilities, revenues and expenses are denominated in USD at the time of a transaction and then converted into our functional currency. As a result, we are exposed to currency exchange risk on any assets and liabilities and revenues and expenses denominated in currencies other than the Canadian dollar. To the extent the Canadian dollar strengthens against USD, the translation of USD denominated transactions results in reduced revenue, operating expenses and net income or loss for our international operations. Similarly, to the extent the U.S. dollars weakens against foreign currencies, the translation of these foreign currency denominated transactions results in increased revenue, operating expenses and net income or loss for our international operations. We do not currently engage in currency hedging transactions to offset fluctuating currency exchange rates.

***Because we are a corporation incorporated under the federal laws of Canada and some of our directors and officers are residents in Canada, it may be difficult for investors in the United States to enforce civil liabilities against us based solely upon the federal securities laws of the United States. Similarly, it may be difficult for Canadian investors to enforce civil liabilities against our directors and officers residing outside of Canada.***

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We are a corporation incorporated under the federal laws of Canada with our principal place of business located in Alberta, Canada. Some of our directors and officers and the auditors or other experts named herein are residents of Canada and all or a substantial portion of our assets and those of such persons are located outside the United States. Consequently, it may be difficult for U.S. investors to effect service of process within the United States upon us or our directors or officers or such auditors who are not residents of the United States, or to realize in the United States upon judgments of courts of the United States predicated upon civil liabilities under the Securities Act. Investors should not assume that Canadian courts: (1) would enforce judgments of U.S. courts obtained in actions against us or such persons predicated upon the civil liability provisions of the U.S. federal securities laws or the securities or blue-sky laws of any state within the United States or (2) would enforce, in original actions, liabilities against us or such persons predicated upon the U.S. federal securities laws or any such state securities or blue sky laws.

Similarly, some of our directors and officers are residents of countries other than Canada and all or a substantial portion of the assets of such persons are located outside Canada. As a result, it may be difficult for Canadian investors to initiate a lawsuit within Canada against these non-Canadian residents. In addition, it may not be possible for Canadian investors to collect from these non-Canadian residents judgments obtained in courts in Canada predicated on the civil liability provisions of securities legislation of certain of the provinces and territories of Canada. It may also be difficult for Canadian investors to succeed in a lawsuit in the United States, based solely on violations of Canadian securities laws.

***Uncertainties regarding the business and trade relations between Canada, the United States and the PRC may restrict or limit the Company's ability to sell products to certain large potential customers located in the PRC.***

Canada's trade relationship with the PRC is long-standing and pre-dates 1970 when the two respective countries established formal diplomatic relations. However, over the past five years relations with China have been strained by a combination of human rights violations<sup>1</sup>, continued trade and investment tensions between Canada and the PRC<sup>2</sup>, restrictions placed on Canada while negotiating the United States – Mexico – Canada Agreement ("USMCA") that requires approval of the U.S. on trade agreements with China<sup>3</sup>, and the PRC's stance on the war between Russia and the Ukraine<sup>4</sup>. Further, these issues have exacerbated the effects of COVID-19 and created supply chain bottlenecks in the movement of goods between Canada and the PRC. The Company currently holds letters of intent for potential future sales with two Chinese state-owned enterprises representing 120 metric tons and 500 metric tons respectively. In the event that trade relations deteriorate between the PRC and Canada, or Canada succumbs to trade pressures under the USMCA resulting in restrictions to Canada-PRC trade, this would have a material adverse effect on the Company's ability to generate revenue in 2023. Our sales, financial condition, results of operations and cash flows would be adversely affected.

 ****

<sup>1</sup> *https://www.amnesty.org/en/location/asia-and-the-pacific/east-asia/china/report-china/.*

<sup>2</sup> *https://www.ualberta.ca/china-institute/research/analysis-briefs/2022/2022-q1.html.*

<sup>3</sup> *https://www.cigionline.org/articles/could-usmca-hinder-future-trade-deals/.*

<sup>4</sup> *https://www.wilsoncenter.org/blog-post/chinas-strategic-calculations-russia-ukraine-war.*

 ****

***The laws of Canada may not provide our shareholders with benefits comparable to those provided to shareholders of corporations incorporated in the United States.***

Our corporate affairs are governed by our Company Bylaws that were amended and restated by the shareholders on July 18, 2022 as part of the Company's continuance from British Columbia, Canada, to Alberta, Canada. We are also governed by the ABCA. The rights of shareholders to take action against our directors, actions by minority shareholders and the fiduciary responsibilities of our directors to us under Canadian law are to a large extent governed by the common law of Canada. The common law in Canada is derived in part from judicial precedent in Canada and from English common law. Decisions of the English courts, and particularly the Supreme Court and the Court of Appeal are generally of persuasive authority but are not binding in the courts of Canada. Decisions of courts in other Commonwealth jurisdictions are similarly of persuasive but not binding authority. The rights of our shareholders and the fiduciary responsibilities of our directors under Canadian law may not be as clearly established as they would be under statutes or judicial precedents in the United States. In particular, Canada has a less developed body of securities laws relative to the United States. Therefore, our public shareholders may have more difficulty protecting their interests in the face of actions by our management, directors or controlling shareholders than would shareholders of a corporation incorporated in a jurisdiction in the United States.

 ****

**Risks Related to Our Intellectual Property**

***Disclosure of our trade secrets and other proprietary information, or a failure to adequately protect these or our other intellectual property rights, could result in increased competition and have a material adverse effect on our business and financial results.***

Our ability to compete effectively depends in part on our ability to obtain, maintain, and protect our patents, trade secrets, proprietary information, and other intellectual property rights. We rely on a combination of trade secret, patent, trademark, and copyright laws, as well as contractual restrictions and physical security measures, to protect our proprietary information and other intellectual property rights.

Where we believe patent protection is not appropriate or obtainable, we rely on trade secret laws and practices to protect our proprietary technology and processes, including physical security, limited dissemination and access and confidentiality agreements with our employees, customers, consultants, vendors, business partners, potential licensees and others, to protect our trade secrets and other proprietary information. However, trade secrets are difficult to protect, and courts outside of Canada may be less willing to protect our trade secrets. There can be no assurance that our protective measures will effectively prevent disclosure or unauthorized use of proprietary information or provide an adequate remedy in the event of misappropriation, infringement, or other violations of our proprietary information and other intellectual property rights.

Existing laws afford only limited protection for our intellectual property rights. Despite our efforts, we may not be able to protect some of our technology, or the protection that we receive may not be sufficient. We face additional risks that our protective measures, including our patents and trademarks, could prove to be inadequate, including:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 steps we take to prevent circumvention, misappropriation, or infringement of our proprietary
 rights may not be successful;

&nbsp;&nbsp;&nbsp;&nbsp;· confidentiality
 agreements may be intentionally or unintentionally breached, be deemed unenforceable, or
 not provide adequate recourse against the disclosing party;

&nbsp;&nbsp;&nbsp;&nbsp;· intellectual
 property laws may not sufficiently support our proprietary rights or may change in the future
 in a manner adverse to us;

&nbsp;&nbsp;&nbsp;&nbsp;· patent
 or trademark rights may not be granted or construed as we expect, or may be challenged, narrowed,
 or invalidated;

&nbsp;&nbsp;&nbsp;&nbsp;· intellectual
 property protection, including patents, may lapse or expire which may result in key technology
 becoming widely available which may hurt our competitive position;

&nbsp;&nbsp;&nbsp;&nbsp;· effective
 protection of intellectual property rights may be unavailable or limited in some countries
 in which we operate or plan to do business;

&nbsp;&nbsp;&nbsp;&nbsp;· third
 parties may independently develop or obtain comparable information and technology, and in
 some jurisdictions, obtain intellectual property protection for such technology; and

&nbsp;&nbsp;&nbsp;&nbsp;· third
 parties may commercialize our products in countries in which we do not have adequate intellectual
 property protection.

From time to time, we may seek to enforce our intellectual property and proprietary rights against third parties. Policing unauthorized use of intellectual property can be difficult and expensive. We may not be successful in our attempts to enforce our intellectual property rights against third parties. While the Company has intellectual property insurance through the IAC, any such litigation may result in substantial diversion of financial and management resources and, if decided unfavorably to us, could have a material adverse effect on our business and financial results.

 **

***Efforts to protect our intellectual property rights and to defend claims against us could increase our costs and will not always succeed; any failures could adversely affect sales and profitability and restrict our ability to do business.***

 **

intellectual property rights are crucial to maintaining our competitive advantage and growing our business. We endeavour to obtain and protect our intellectual property rights which we feel will allow us to retain or advance our competitive advantage in the marketplace. However, there can be no assurance that we will be able to adequately identify and protect the portions of intellectual property which are strategic to our business, including, without limitation, intellectual property related to ASAC and ESAC technology which remains under development and a key part of our strategy. Generally, when strategic intellectual property rights are identified, we will seek formal protection in jurisdictions in which our products are produced or used, jurisdictions in which competitors are producing or importing their products, and jurisdictions into which our products are imported. Different nations may provide limited rights and inconsistent duration of protection for our products. Additionally, we may be unable to obtain protection for or defend our intellectual property in key jurisdictions. For example, the patent prosecution and enforcement system within China is less mature than the systems in other jurisdictions and therefore we may be more limited in our ability to enforce our rights. This disadvantage would likely be compounded by the challenge of any enforcement attempts by us as a foreign entity seeking protection against a Chinese company infringing on our intellectual property in China.

Even if protection is obtained, competitors or others in the chain of commerce may raise legal challenges to our rights or illegally infringe our rights, including through means that may be difficult to prevent or detect. For example, a certain portion of our IP portfolio is related to unique process steps performed during the manufacture of our products which are not readily recognizable in the physical embodiment of the final product. It may be difficult to identify and prove that a competitor is infringing on our rights to such process steps. Further, we are required to divulge certain of our intellectual property to our business partners to enable them to provide quality products or raw materials to us or enable the exploitation and success of strategic partnerships. To the extent that such disclosure occurs in China or other jurisdictions in which the ability to protect intellectual property is more limited, existing or new competitors in this region could begin to use our intellectual property in the development of their own products, which could reduce our competitive edge. Even in jurisdictions in which intellectual property is highly valued, and therefore protected, the financial burden of asserting or defending our intellectual property rights could prove to be cost prohibitive for us thereby putting us in a position in which we must sacrifice our competitive edge.

In addition, because of the rapid pace of technology advancements, and the confidentiality of patent applications in some jurisdictions, competitors may be issued patents stemming from pending patent applications that were unknown to us prior to issuance of the patents. This could reduce the value of our commercial or pipeline products or, to the extent they cover key technologies on which we have unknowingly relied, require that we seek to obtain a license or cease using the technology, no matter how valuable to our business. We may not be able to obtain such a license on acceptable terms. The extent to which we succeed or fail in our efforts to protect our intellectual property will affect our financial condition and results of operations.

***We may not be able to obtain patents or other intellectual property rights necessary to protect our proprietary technology and business.***

Our commercial success depends to a significant degree upon our ability to develop new or improved technologies and products, and to obtain patents or other intellectual property rights or statutory protection for these technologies and products in Canada, the United States, and other countries. We seek to patent concepts, components, processes, designs and methods, and other inventions and technologies that we consider having commercial value or that will likely give us a technological advantage. We own patent applications for technologies relating to ASAC invention in Canada, the United States, China and other countries. Despite devoting resources to the research and development of proprietary technology, we may not be able to develop technology that is patentable or protectable. Patents may not be issued in connection with our pending patent applications and claims allowed may not be sufficient to allow us to use the inventions that we create exclusively. Furthermore, any patents issued to us could be challenged, held invalid or unenforceable or circumvented and may not provide us with sufficient protection or a competitive advantage. In addition, despite our efforts to protect and maintain our patents, competitors and other third parties may be able to design around our patents or develop products similar to our products that are not within the scope of our patents. Finally, patents provide certain statutory protection only for a limited period of time that varies depending on the jurisdiction and type of patent. The statutory protection term of certain of our material patents may expire soon and, thereafter, the underlying technology of such patents can be used by any third party including our competitors.

A number of our competitors and other third parties have been issued patents, or may have filed patent applications, or may obtain additional patents or other intellectual property rights for technologies similar to those that we have developed, used or commercialized, or may develop, use or commercialize, in the future. As certain patent applications in the United States and other countries are maintained in secrecy for a period of time after filing, and as publication or public awareness of new technologies often lags behind actual discoveries, we cannot be certain that we were the first to develop the technology covered by our pending patent applications or issued patents or that we were the first to file patent applications for the technology covered by our issued patents and patent pending applications. In addition, the disclosure in our patent applications, including in respect of the utility of our claimed inventions, may not be sufficient to meet the statutory requirements for patentability in all cases. As a result, we cannot assure you that our patent applications will result in valid or enforceable patents or that we will be able to protect or maintain our patents.

Prosecution and protection of the rights sought in patent applications and patents can be costly and uncertain, often involve complex legal and factual issues and consume significant time and resources. In addition, the breadth of claims allowed in our patents, their enforceability and our ability to protect and maintain them cannot be predicted with any certainty. The laws of certain countries may not protect intellectual property rights to the same extent as the laws of Canada or the United States. Even if our patents are held to be valid and enforceable in a certain jurisdiction, any legal proceedings that we may initiate against third parties to enforce such patents will likely be expensive, take significant time and divert management's attention from other business matters. We cannot assure you that any of our issued patents or pending patent applications will provide any protectable, maintainable or enforceable rights or competitive advantages to us.

In addition to patents, we rely on a combination of copyrights, trademarks, trade secrets and other related laws and confidentiality procedures and contractual provisions to protect, maintain and enforce our proprietary technology and intellectual property rights in the United States, Canada and other countries. However, our ability to protect our brand by registering certain trademarks may be limited. In addition, while we generally enter into confidentiality and non-disclosure agreements with our employees, consultants, contract manufacturers, distributors and dealers and with others to attempt to limit access to and distribution of our proprietary and confidential information, it is possible that:

&nbsp;&nbsp;&nbsp;&nbsp;· misappropriation
 of our proprietary and confidential information, including technology, will nevertheless
 occur;

&nbsp;&nbsp;&nbsp;&nbsp;· our
 confidentiality agreements will not be honored or may be rendered unenforceable;

&nbsp;&nbsp;&nbsp;&nbsp;· third
 parties will independently develop equivalent, superior or competitive technology or products;

&nbsp;&nbsp;&nbsp;&nbsp;· disputes
 will arise with our current or future strategic licensees, customers or others concerning
 the ownership, validity, enforceability, use, patentability or registrability of intellectual
 property; or

&nbsp;&nbsp;&nbsp;&nbsp;· unauthorized
 disclosure of our know-how, trade secrets or other proprietary or confidential information
 will occur.

We cannot assure you that we will be successful in protecting, maintaining, or enforcing our intellectual property rights. If we are not successful in protecting, maintaining, or enforcing our intellectual property rights, then our business, operating results and financial condition could be materially adversely affected.

***We may infringe on or violate the intellectual property rights of others.***

Our commercial success depends, in part, upon our not infringing or violating intellectual property rights owned by others. The industry in which we compete has many participants that own, or claim to own, intellectual property. We cannot determine with certainty whether any existing third-party patents, or the issuance of any new third-party patents, would require us to alter our technologies or products, obtain licenses or cease certain activities, including the sale of certain products.

We have received, and we may in the future receive, claims from third parties asserting infringement and other related claims. Litigation has been and may continue to be necessary to determine the scope, enforceability and validity of third-party intellectual property rights or to protect, maintain and enforce our intellectual property rights. Some of our competitors have, or are affiliated with companies having, substantially greater resources than we have, and these competitors may be able to sustain the costs of complex intellectual property litigation to a greater degree and for longer periods of time than we can. Regardless of whether claims that we are infringing or violating patents or other intellectual property rights have any merit, those claims could:

&nbsp;&nbsp;&nbsp;&nbsp;· adversely
 affect our reputation with customers;

&nbsp;&nbsp;&nbsp;&nbsp;· be
 time-consuming and expensive to evaluate and defend;

&nbsp;&nbsp;&nbsp;&nbsp;· cause
 product shipment delays or stoppages;

&nbsp;&nbsp;&nbsp;&nbsp;· divert
 management's attention and resources;

&nbsp;&nbsp;&nbsp;&nbsp;· subject
 us to significant liabilities and damages;

&nbsp;&nbsp;&nbsp;&nbsp;· require
 us to enter into royalty or licensing agreements; or

&nbsp;&nbsp;&nbsp;&nbsp;· require
 us to cease certain activities, including the sale of products.

If it is determined that we have infringed, violated or are infringing or violating a patent or other intellectual property right of any other person or if we are found liable in respect of any other related claim, then, in addition to being liable for potentially substantial damages, we may be prohibited from developing, using, distributing, selling or commercializing certain of our technologies and products unless we obtain a license from the holder of the patent or other intellectual property right. We cannot assure you that we will be able to obtain any such license on a timely basis or on commercially favorable terms, or that any such licenses will be available, or that workarounds will be feasible and cost-efficient. If we do not obtain such a license or find a cost-efficient workaround, our business, operating results and financial condition could be materially adversely affected and we could be required to cease related business operations in some markets and restructure our business to focus on our continuing operations in other markets.

***In the future, we may need to obtain additional licenses of third-party technology that may not be available to us or are available only on commercially unreasonable terms, and which may cause us to operate our business in a more costly or otherwise adverse manner that was not anticipated.***

 ****

We currently own intellectual property directed to our product candidates and other proprietary technologies, including our technology platform. Other super activated carbon companies and academic institutions may also have filed or are planning to file patent applications potentially relevant to our business. From time to time, in order to avoid infringing these third-party patents, we may be required to license technology from additional third parties to further develop or commercialize our product candidates. Should we be required to obtain licenses to any third-party technology, including any such patents required to manufacture, use or sell our product candidates, such licenses may not be available to us on commercially reasonable terms, or at all. The inability to obtain any third-party license required to develop or commercialize any of our product candidates could cause us to abandon any related efforts, which could seriously harm our business and operations.

The licensing or acquisition of third-party intellectual property rights is a competitive area, and several more established companies may pursue strategies to license or acquire third-party intellectual property rights we may consider attractive or necessary. These established companies may have a competitive advantage over us due to their size, capital resources and greater technology development and commercialization capabilities. In addition, companies that perceive us to be a competitor may be unwilling to assign or license rights to us. Even if we are able to obtain a license under such intellectual property rights, any such license may be non-exclusive, which may allow our competitors access to the same technologies licensed to us.

Moreover, some of our owned and in-licensed patents or patent applications or future patents may be co-owned with third parties. If we are unable to obtain an exclusive license to any such third-party co-owners' interest in such patents or patent applications, such co-owners may be able to license their rights to other third parties, including our competitors, and our competitors could market competing products and technology. In addition, we may need the cooperation of any such co-owners of our patents in order to enforce such patents against third parties, and such cooperation may not be provided to us. Furthermore, our owned and in-licensed patents maybe subject to a reservation of rights by one or more third parties. Any of the foregoing could have a material adverse effect on our competitive position, business, financial conditions, results of operations and prospects.

***Because of the expense and uncertainty of litigation, we may not be in a position to enforce our intellectual property rights against third parties.***

Because of the expense and uncertainty of litigation, we may conclude that even if a third party is infringing our issued patent, any patents that may be issued as a result of our pending or future patent applications or other intellectual property rights, the risk-adjusted cost of bringing and enforcing such a claim or action may be too high or not in the best interest of our Company or our shareholders. In such cases, we may decide that the more prudent course of action is to simply monitor the situation or initiate or seek some other non-litigious action or solution.

 **

***We may be subject to claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties.***

 **

We employ and may employ individuals who were previously employed at other companies, including our competitors or potential competitors. Although we try to ensure that our employees, consultants and advisors do not use the proprietary information or know-how of others in their work for us, we may be subject to claims that we or our employees, consultants, or independent contractors have inadvertently or otherwise used or disclosed confidential information of our employees' former employers or other third parties. We may also be subject to claims that former employers or other third parties have an ownership interest in our future patents. Litigation may be necessary to defend against these claims. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights or personnel. There is no guarantee of success in defending these claims, and even if we are successful, litigation could result in substantial cost and be a distraction to our management and other employees.

 **

***Patent terms may be inadequate to protect our competitive position on our product candidates for an adequate amount of time.***

 **

The term of any individual patent depends on applicable law in the country where the patent is granted. In Canada, provided all maintenance fees are timely paid, a patent generally has a term of 20 years from its application filing date or earliest claimed non-provisional filing date. Extensions may be available under certain circumstances, but the life of a patent and, correspondingly, the protection it affords is limited. Even if we or our licensors obtain patents covering our product candidates, when the terms of all patents covering a product expire, our business may become subject to competition from competitive medications, including generic medications. Given the amount of time required for the development, testing and regulatory review and approval of new product candidates, patents protecting such candidates may expire before or shortly after such candidates are commercialized. As a result, our owned and licensed patent portfolio may not provide us with sufficient rights to exclude others from commercializing products similar or identical to ours.

 **

***We enjoy only limited geographical protection with respect to certain patents and we may not be able to protect our intellectual property rights throughout the world.***

 **

Filing, prosecuting and defending patents covering our product candidates in all countries throughout the world would be prohibitively expensive, and even in countries where we have sought protection for our intellectual property, such protection can be less extensive than those in the United States. The requirements for patentability may differ in certain countries, particularly developing countries, and the breadth of patent claims allowed can be inconsistent. In addition, the laws of some foreign countries do not protect intellectual property rights to the same extent as federal and state laws in the United States. In-licensing patents covering our product candidates in all countries throughout the world may similarly be prohibitively expensive, if such opportunities are available at all. And in-licensing or filing, prosecuting and defending patents even in only those jurisdictions in which we develop or commercialize our product candidates may be prohibitively expensive or impractical. Competitors may use our and our licensors' technologies in jurisdictions where we have not obtained patent protection or licensed patents to develop their own products and, further, may export otherwise infringing products to territories where we and our licensors have patent protection, but where enforcement is not as strong as that in the United States or Europe. These products may compete with our product candidates, and our or our licensors' patents or other intellectual property rights may not be effective or sufficient to prevent them from competing.

The laws of some jurisdictions do not protect intellectual property rights to the same extent as the laws or regulations in the United States and Europe, and many companies have encountered significant difficulties in protecting and defending proprietary rights in such jurisdictions. Moreover, the legal systems of certain countries, particularly certain developing countries, do not favor the enforcement of patents, trade secrets or other forms of intellectual property, particularly those relating to biotechnology products, which could make it difficult for us to prevent competitors in some jurisdictions from marketing competing products in violation of our proprietary rights generally. Proceedings to enforce our patent rights in foreign jurisdictions, whether or not successful, are likely to result in substantial costs and divert our efforts and attention from other aspects of our business, and additionally could put at risk our or our licensors' patents of being invalidated or interpreted narrowly, could increase the risk of our or our licensors' patent applications not issuing, or could provoke third parties to assert claims against us. We may not prevail in any lawsuits that we initiate, while damages or other remedies may be awarded to the adverse party, which may be commercially significant. If we prevail, damages or other remedies awarded to us, if any, may not be commercially meaningful. Accordingly, our efforts to enforce our intellectual property rights around the world may be inadequate to obtain a significant commercial advantage from the intellectual property that we develop or license. Furthermore, while we intend to protect our intellectual property rights in our expected significant markets, we cannot ensure that we will be able to initiate or maintain similar efforts in all jurisdictions in which we may wish to market our product candidates. Accordingly, our efforts to protect our intellectual property rights in such countries may be inadequate, which may have an adverse effect on our ability to successfully commercialize our product candidates in all of our expected significant foreign markets. If we or our licensors encounter difficulties in protecting, or are otherwise precluded from effectively protecting, the intellectual property rights important for our business in such jurisdictions, the value of these rights may be diminished and we may face additional competition in those jurisdictions.

In some jurisdictions including European countries, compulsory licensing laws compel patent owners to grant licenses to third parties. In addition, some countries limit the enforceability of patents against government agencies or government contractors. In these countries, the patent owner may have limited remedies, which could materially diminish the value of such patent. If we or any of our licensors are forced to grant a license to third parties under patents relevant to our business, or if we or our licensors are prevented from enforcing patent rights against third parties, our competitive position may be substantially impaired in such jurisdictions.

 **

***We may become subject to claims challenging the inventorship or ownership of our patents and other intellectual property.***

 **

We may be subject to claims that former employees, collaborators or other third parties have an interest in our patents or other intellectual property as an inventor or co-inventor. The failure to name the proper inventors on a patent application can result in the patents issuing thereon being unenforceable. Inventorship disputes may arise from conflicting views regarding the contributions of different individuals named as inventors, the effects of foreign laws where foreign nationals are involved in the development of the subject matter of the patent, conflicting obligations of third parties involved in developing our product candidates or as a result of questions regarding co-ownership of potential joint inventions. Litigation may be necessary to resolve these and other claims challenging inventorship and/or ownership. Alternatively, or additionally, we may enter into agreements to clarify the scope of our rights in such intellectual property. If we fail in defending any such claims, in addition to paying monetary damages, we may lose valuable intellectual property rights, such as exclusive ownership of, or right to use, valuable intellectual property. Such an outcome could have a material adverse effect on our business. Even if we are successful in defending against such claims, litigation could result in substantial costs and be a distraction to management and other employees.

Our licensors may have relied on third-party consultants or collaborators or on funds from third parties, such as the Canadian government, such that our licensors are not the sole and exclusive owners of the patents we may in-license in the future. If other third parties have ownership rights or other rights to our in-licensed patents, they may be able to license such patents to our competitors, and our competitors could market competing products and technology. This could have a material adverse effect on our competitive position, business, financial conditions, results of operations, and prospects.

In addition, while it is our policy to require our employees and contractors who may be involved in the conception or development of intellectual property to execute agreements assigning such intellectual property to us, we may be unsuccessful in executing such an agreement with each party who, in fact, conceives or develops intellectual property that we regard as our own. The assignment of intellectual property rights may not be self-executing, or the assignment agreements may be breached, and we may be forced to bring claims against third parties, or defend claims that they may bring against us, to determine the ownership of what we regard as our intellectual property. Such claims could have a material adverse effect on our business, financial condition, results of operations, and prospects.

**Risks Related to Our Common Shares and this Offering**

***The initial public offering price for our Common Shares may not be indicative of prices that will prevail in the trading market and such market prices may be volatile.***

The initial public offering price for our Common Shares will be determined by negotiations between us and the underwriters, and does not bear any relationship to our earnings, book value or any other indicia of value. We cannot assure you that the market price of our Common Shares will not decline significantly below the initial public offering price. The financial markets in the United States and other countries have experienced significant price and volume fluctuations in the last few years. Volatility in the price of our Common Shares may be caused by factors outside of our control and may be unrelated or disproportionate to changes in our results of operations.

 **

***There has been no prior public market for our Common Shares, the stock price of our Common Shares may be volatile or may decline regardless of our operating performance and you may not be able to resell your shares at or above the initial public offering price.***

 **

There has been no public market for our Common Shares prior to this offering. The initial public offering price for our Common Shares will be determined through negotiations between the underwriters and us and may vary from the market price of our Common Shares following this offering. If you purchase shares of our Common Shares in this offering, you may not be able to resell those shares at or above the initial public offering price. An active or liquid market in our Common Shares may not develop upon the completion of this offering or, if it does develop, it may not be sustainable. Further, an inactive market may also impair our ability to raise capital by selling shares of our Common Shares and may impair our ability to enter into strategic partnerships or acquire companies or products by using our Common Shares as consideration. The market price of our Common Shares may fluctuate significantly in response to numerous factors, many of which are beyond our control, including:

&nbsp;&nbsp;&nbsp;&nbsp;· overall
 performance of the equity markets;

&nbsp;&nbsp;&nbsp;&nbsp;· our
 operating performance and the performance of other similar companies;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 published opinions and third-party valuations by banking and market analysts;

&nbsp;&nbsp;&nbsp;&nbsp;· our
 failure to achieve product development goals in the timeframe we announce;

&nbsp;&nbsp;&nbsp;&nbsp;· recruitment
 or departure of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 economy as a whole and market conditions in our industry;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 expiration of market standoff or contractual lock-up agreements;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 size of our market float;

&nbsp;&nbsp;&nbsp;&nbsp;· political
 uncertainty and/or instability in Canada;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 ongoing and future impact of the COVID-19 pandemic; and

&nbsp;&nbsp;&nbsp;&nbsp;· any
 other factors discussed in this prospectus.

 ****

In addition, the stock markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. Stock prices of many companies have fluctuated in a manner unrelated or disproportionate to the operating performance of those companies. In the past, shareholders have filed securities class action litigation following periods of market volatility. If we were to become involved in securities litigation, it could subject us to substantial costs, divert resources and the attention of management from our business and adversely affect our business.

***Our principal shareholders and management own a significant percentage of our stock and will be able to exert significant control over matters subject to shareholder approval.***

As of , 2022 our executive officers, directors, 5% shareholders and their affiliates beneficially owned approximately 89.7% of our voting stock and, upon closing of this offering, that same group will beneficially own approximately % of our outstanding voting stock, assuming no purchases of any shares of Common Shares in this offering pursuant to the contemplated directed share program or otherwise. Therefore, even after this offering, these shareholders will have the ability to influence us through their ownership positions. These shareholders may be able to determine all matters requiring shareholder approval. For example, these shareholders, acting together, may be able to control elections of directors, amendments of our organizational documents, or approval of any merger, sale of assets, or other major corporate transaction. This may prevent or discourage unsolicited acquisition proposals or offers for our Common Shares that you may believe are in your best interest as one of our shareholders.

***Substantial amounts of our outstanding Common Shares may be sold into the market when lock-up periods end. If there are substantial sales of our Common Shares, the price of our Common Shares could decline.***

The price of our Common Shares could decline if there are substantial sales of our Common Shares, particularly sales by our directors, executive officers and significant shareholders, or if there is a large number of our Common Shares available for sale and the market perceives that sales will occur. After this offering, we will have outstanding shares of our Common Shares, based on the number of Common Shares outstanding as of , 2022. All of the Common Shares sold in this offering will be available for sale in the public market. Substantially all of our outstanding Common Shares are currently restricted from resale as a result of lock-up agreements, as more fully described in the section of this prospectus titled "*Shares Eligible for Future Sale.*" These shares will become available to be sold 180 days after the date of this prospectus, in addition to shares issuable pursuant to outstanding warrants. Shares held by directors, executive officers and other affiliates will be subject to volume limitations under Rule 144 under the Securities Act and various vesting agreements.

After the completion of this offering, certain of our shareholders will have rights, subject to some conditions, to require us to file registration statements covering their shares or to include their shares in registration statements that we may file for ourselves or our shareholders, subject to lock-up agreements. We also intend to register Common Shares that we have issued and may issue under our employee equity incentive plans. Once we register these shares, they will be able to be sold freely in the public market upon issuance, subject to existing lock-up agreements. The underwriters of this offering may, in their discretion, permit our shareholders to sell shares prior to the expiration of the restrictive provisions contained in those lock-up agreements.

The market price of our Common Shares could decline as a result of the sale of a substantial number of our Common Shares in the public market or the perception in the market that the holders of a large number of shares intend to sell their shares.

***If you purchase our Common Shares in this offering, you will incur immediate and substantial dilution.***

The assumed initial public offering price is substantially higher than the pro forma net tangible book value per share of our Common Shares of $ per share as of , 2022. Investors purchasing Common Shares in this offering will pay a price per share that substantially exceeds the book value of our tangible assets after subtracting our liabilities. As a result, investors purchasing Common Shares in this offering will incur immediate dilution of $ per share, based on the assumed initial public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus. This dilution is due to the substantially lower price paid by our investors who purchased shares prior to this offering as compared to the price offered to the public in this offering. See "*Dilution*."

***We do not intend to pay dividends on our Common Shares so any returns will be limited to the value of our stock.***

We currently anticipate that we will retain future earnings for the development, operation and expansion of our business and do not anticipate declaring or paying any cash dividends for the foreseeable future. Any return to shareholders will therefore be limited to the appreciation of their stock.

***We have broad discretion in the use of the net proceeds from this offering and we may use these proceeds in ways with which you may not agree, and such use may not produce income or enhance the value of our Common Shares.***

Our management will have considerable discretion in deciding how to apply the net proceeds from this offering, and you will not have the opportunity as part of your investment decision to assess whether the net proceeds are being used appropriately. You must rely on the judgment of our management regarding the application of the net proceeds of this offering. We cannot assure you that the net proceeds will be used in a manner that would improve our results of operations or increase the price of our Common Shares, nor that these net proceeds will be placed only in investments that generate income or appreciate in value. The failure by our management to apply these funds effectively could harm our business. Pending their use, we may invest the net proceeds from this offering in a manner that does not produce income or that loses value.

***If our listing application for our Common Shares is not approved by Nasdaq, we will not be able to consummate the offering and will terminate this offering.***

Prior to this offering, there has been no public market for our Common Shares. We have applied to list our Common Shares on Nasdaq, under the symbol "ADVI." Our initial public offering is conditioned upon the approval of our listing by Nasdaq, which approval may not be granted. If our listing is not approved by Nasdaq, we will not complete this initial public offering and will terminate this offering. Additionally, if our Common Shares are initially approved for listing and if we subsequently fail to meet the listing standards in the future and are de-listed, our Common Shares could become a penny stock.

 **

***If we are approved for listing on Nasdaq, but subsequently our Common Shares fail to meet continued listing standards and our Common Shares are then delisted, our Common Shares may not qualify for an exemption from being classified as a "penny stock," and the ability of shareholders to sell our Common Shares in the secondary market will be limited.***

 **

The SEC has adopted regulations which generally define a "penny stock" to be an equity security that has a market price, as defined, of less than $5.00 per share, or an exercise price of less than $5.00 per share, subject to certain exceptions, including an exception of an equity security that is quoted on a national securities exchange. Should our Common Shares not be quoted on a national exchange (such as Nasdaq) and have a market price less than $5.00 per share, they will be subject to rules that impose additional sales practice requirements on broker-dealers who sell these securities. For example, the broker-dealer must make a special suitability determination for the purchaser of such securities and have received the purchaser's written consent to the transactions prior to the purchase. Additionally, the rules require the delivery, prior to the transaction, of a disclosure schedule prepared by the SEC relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered underwriters, and current quotations for the securities, and, if the broker-dealer is the sole market maker, the broker-dealer must disclose this fact and the broker-dealer's presumed control over the market. Finally, among other requirements, monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. The "penny stock" rules, may restrict the ability of our shareholders to sell our Common Shares in the secondary market*.***

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***We have limited insurance coverage with respect to our business and operations.***

We are exposed to various risks associated with our business and operations, and we have limited insurance coverage. We are exposed to risks including, among other things, accidents or injuries in our schools, loss of key management and personnel, business interruption, natural disasters, terrorist attacks and social instability or any other events beyond our control. We do not have any business interruption insurance, or key-man life insurance. Any business interruption, legal proceeding or natural disaster or other events beyond our control could result in substantial costs and diversion of our resources, which may materially and adversely affect our business, financial condition and results of operations.

***If we fail to maintain proper and effective internal controls, our ability to produce accurate financial statements on a timely basis could be impaired.***

After the closing of this offering, we will be subject to the reporting requirements of the Exchange Act, the Sarbanes-Oxley Act and the rules and regulations of Nasdaq. The Sarbanes-Oxley Act requires, among other things, that we maintain effective disclosure controls and procedures and internal controls over financial reporting. 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 in accordance with accounting principles generally accepted in the U.S. We must perform system and process evaluation and testing of our internal controls over financial reporting to allow management to report on the effectiveness of our internal controls over financial reporting in our Form 20-F filing for that year, as required by Section 404 of the Sarbanes-Oxley Act. This will require that we incur substantial additional professional fees and internal costs to expand our accounting and finance functions and that we expend significant management efforts.

During the evaluation and testing process of our internal controls, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable to assert that our internal control over financial reporting is effective. We cannot assure you that there will not be material weaknesses or significant deficiencies in our internal control over financial reporting in the future. Any failure to maintain internal control over financial reporting could severely inhibit our ability to accurately report our financial condition or results of operations. If we are unable to conclude that our internal control over financial reporting is effective, or if our independent registered public accounting firm determines we have a material weakness or significant deficiency in our internal control over financial reporting, we could lose investor confidence in the accuracy and completeness of our financial reports, the market price of our Common Shares could decline, and we could be subject to sanctions or investigations by Nasdaq, the SEC, or other regulatory authorities. Failure to remedy any material weakness in our internal control over financial reporting, or to implement or maintain other effective control systems required of public companies, could also restrict our future access to the capital markets.

***A possible "short squeeze" due to a sudden increase in demand of our Common Shares that largely exceeds supply may lead to price volatility in our Common Shares.***

Investors may purchase our Common Shares to hedge existing exposure in our Common Shares or to speculate on the price of our Common Shares. Speculation on the price of our Common Shares may involve long and short exposures. To the extent aggregate short exposure exceeds the number of our Common Shares available for purchase in the open market, investors with short exposure may have to pay a premium to repurchase our Common Shares for delivery to lenders of our Common Shares. Those repurchases may in turn, dramatically increase the price of our Common Shares until investors with short exposure are able to purchase additional Common Shares to cover their short position. This is often referred to as a "short squeeze." A short squeeze could lead to volatile price movements in our Common Shares that are not directly correlated to the performance or prospects of our Common Shares and once investors purchase the Common Shares necessary to cover their short position the price of our Common Shares may decline.

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***The trading price of our Common Shares may be volatile, which could result in substantial losses to you.***

The trading prices of our Common Shares are likely to be volatile and could fluctuate widely due to factors beyond our control. This may happen due to broad market and industry factors, such as performance and fluctuation in the market prices or underperformance or deteriorating financial results of other listed companies. The securities of some of these companies have experienced significant volatility since their initial public offerings, including, in some cases, substantial price declines in the trading prices of their securities. The trading performances of other companies' securities after their offerings may affect the attitudes of investors towards U.S.-listed companies, which consequently may affect the trading performance of our Common Shares, regardless of our actual operating performance. In addition, any negative news or perceptions about inadequate corporate governance practices or fraudulent accounting, corporate structure or matters of other companies may also negatively affect the attitudes of investors towards companies in general, including us, regardless of whether we have conducted any inappropriate activities. Furthermore, securities markets may from time to time experience significant price and volume fluctuations that are not related to our operating performance, which may have a material and adverse effect on the trading price of our Common Shares.

In addition to the above factors, the price and trading volume of our Common Shares may be highly volatile due to multiple factors, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;· regulatory
 developments affecting us or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;· variations
 in our revenue, profit, and cash flow;

&nbsp;&nbsp;&nbsp;&nbsp;· changes
 in the economic performance or market valuations of other technological logistic services
 providers;

&nbsp;&nbsp;&nbsp;&nbsp;· actual
 or anticipated fluctuations in our interim results of operations and changes or revisions
 of our expected results;

&nbsp;&nbsp;&nbsp;&nbsp;· changes
 in financial estimates by securities research analysts;

&nbsp;&nbsp;&nbsp;&nbsp;· detrimental
 negative publicity about us, our services, our customers, our officers, directors, principal
 shareholders, other beneficial owners, our business partners, or our industry;

&nbsp;&nbsp;&nbsp;&nbsp;· announcements
 by us or our competitors of new service offerings, acquisitions, strategic relationships,
 joint ventures, capital raisings or capital commitments;

&nbsp;&nbsp;&nbsp;&nbsp;· additions
 to or departures of our senior management;

&nbsp;&nbsp;&nbsp;&nbsp;· litigation
 or regulatory proceedings involving us, our customers, our officers, directors, or principal
 shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;· release
 or expiry of lock-up or other transfer restrictions on our outstanding Common Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;· sales
 or perceived potential sales of additional Common Shares.

Any of these factors may result in large and sudden changes in the volume and price at which our Common Shares will trade.

In the past, shareholders of public companies have often brought securities class action suits against those companies following periods of instability in the market price of their securities. If we were involved in a class action suit, it could divert a significant amount of our management's attention and other resources from our business and operations and require us to incur significant expenses to defend the suit, which could harm our results of operations. Any such class action suit, whether or not successful, could harm our reputation and restrict our ability to raise capital in the future. In addition, if a claim is successfully made against us, we may be required to pay significant damages, which could have a material adverse effect on our financial condition and results of operations.

Certain recent initial public offerings of companies with relatively small public floats comparable to our anticipated public float have experienced extreme volatility that was seemingly unrelated to the underlying performance of the respective company. Our Common Shares may potentially experience rapid and substantial price volatility, which may make it difficult for prospective investors to assess the value of our Common Shares.

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Our Common Shares may be subject to rapid and substantial price volatility. Recently, companies with comparably small public floats and initial public offering sizes have experienced instances of extreme stock price run-ups followed by rapid price declines, and such stock price volatility was seemingly unrelated or disproportionate to the respective company's underlying performance. Although the specific cause of such volatility is unclear, our anticipated public float may amplify the impact the actions taken by a few shareholders have on the price of our stock, which may cause our stock price to deviate, potentially significantly, from a price that better reflects the underlying performance of our business. Our Common Shares may experience run-ups and declines that are seemingly unrelated to our actual or expected operating performance and financial condition or prospects, making it difficult for prospective investors to assess the rapidly changing value of our Common Shares. In addition, investors in our Common Shares may experience losses, which may be material, if the price of our Common Shares declines after this offering or if such investors purchase our Common Shares prior to any price decline.

***Our pre-offering shareholders will be able to sell their Common Shares upon completion of this offering subject to restrictions under Rule 144 under the Securities Act.***

32,750,000 of our Common Shares are issued and outstanding before this offering. Our pre-offering ("pre-offering") shareholders, the "Beneficial Owners," may be able to sell their Common Shares under Rule 144 after the completion of this offering. Because these shareholders have paid a lower price per Common Share than participants in this offering, when they are able to sell their pre-offering shares under Rule 144, they may be more willing to accept a lower sales price than the initial public offering price. This fact could impact the trading price of the Common Shares following the completion of this offering, to the detriment of participants in this offering. Under Rule 144, before the Beneficial Owners can sell their shares, in addition to meeting other requirements, they must meet the required holding period. We do not expect any of the Common Shares to be sold pursuant to Rule 144 during the pendency of this offering.

**Risks Related to Being a Foreign Private Issuer**

***As a foreign private issuer, we are not subject to certain U.S. securities law disclosure requirements that apply to a domestic U.S. issuer, which may limit the information publicly available to our shareholders.***

As a foreign private issuer we are not required to comply with all the periodic disclosure requirements of the Exchange Act and therefore there may be less publicly available information about us than if we were a U.S. domestic issuer. For example, we are not subject to the proxy rules in the United States and disclosure with respect to our annual meetings will be governed by Canadian requirements. In addition, our officers, directors and principal shareholders are exempt from the reporting and "short-swing" profit recovery provisions of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. Therefore, our shareholders may not know on a timely basis when our officers, directors and principal shareholders purchase or sell our shares.

***There can be no assurance that we will not be a passive foreign investment company for U.S. federal income tax purposes, which could result in adverse U.S. federal income tax consequences to U.S. investors.***

Under the Internal Revenue Code of 1986, as amended (the "Code"), we will be classified as a passive foreign investment company (a "PFIC") for any taxable year if either: (a) at least 75% of our gross income is "passive income" for purposes of the PFIC rules or (b) at least 50% of the value of our assets (determined on the basis of a quarterly average) is attributable to assets that produce or are held for the production of passive income. For this purpose, passive income includes interest, dividends and other investment income, with certain exceptions. Cash and cash-equivalents generally are passive assets for these purposes, and digital assets are likely to be passive assets for these purposes as well. Goodwill is active to the extent attributable to activities that produce or are intended to produce active income. The PFIC rules also contain a look-through rule whereby we will be treated as owning our proportionate share of the gross assets and earning our proportionate share of the gross income of any other corporation in which we own, directly or indirectly, 25% or more (by value) of the stock.

Based on the current and anticipated composition of our income, assets and operations and the price of our Common Shares, we do not expect to be treated as a PFIC for the current taxable year. However, whether we are treated as a PFIC is a factual determination that is made on an annual basis after the close of each taxable year. This determination will depend on, among other things, the ownership and the composition of our income and assets, as well as the relative value of our assets (which may fluctuate with our market capitalization), at the relevant time. Moreover, the application of the PFIC rules to digital assets and transactions related thereto is subject to uncertainty. Among other things, the IRS has issued limited guidance on the treatment of income from mining digital assets. The IRS or a court may disagree with our determinations, including the manner in which we determine the value of our assets and the percentage of our assets that constitutes passive assets under the PFIC rules. Therefore, there can be no assurance that we will not be classified as a PFIC for the current taxable year or for any future taxable year.

***There could be adverse tax consequences for our shareholders in the United States if we are a passive foreign investment company.***

Under United States federal income tax laws, if a company is, or for any past period was, a passive foreign investment company, or PFIC, it could have adverse United States federal income tax consequences to United States shareholders even if the company is no longer a PFIC. The determination of whether we are a PFIC is a factual determination made annually based on all the facts and circumstances and thus is subject to change, and the principles and methodology used in determining whether a company is a PFIC are subject to interpretation. While we do not believe that we currently are or have been a PFIC, we cannot assure you that we will not be a PFIC in the future. United States purchasers of the Common Shares are urged to consult their tax advisors concerning United States federal income tax consequences of holding our Common Shares if we are considered to be a PFIC.

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***If a United States person is treated as owning at least 10% of our Common Shares, such holder may be subject to adverse U.S. federal income tax consequences.***

If a U.S. holder is treated as owning, directly, indirectly or constructively, at least 10% of the value or voting power of our stock, such U.S. holder may be treated as a "United States shareholder" with respect to each "controlled foreign corporation" ("CFC") in our group. Because our group includes U.S. subsidiaries, some or all of our non-U.S. subsidiaries will be treated as CFCs even if we are not a CFC. A United States shareholder of a CFC may be required to annually report and include in its U.S. taxable income its pro rata share of "Subpart F income," "global intangible low-taxed income" and investments in U.S. property by CFCs, regardless of whether we make any distributions. An individual that is a United States shareholder with respect to a CFC generally would not be allowed certain tax deductions or foreign tax credits that would be allowed to a United States shareholder that is a U.S. corporation. Failure to comply with CFC reporting obligations may subject a United States shareholder to significant monetary penalties.

We cannot provide any assurance that we will furnish to any United States shareholder information that may be necessary to comply with the reporting and taxpaying obligations applicable under the controlled foreign corporation rules of the Code. The IRS has provided limited guidance on situations in which investors may rely on publicly available information to comply with their reporting and taxpaying obligations with respect to foreign-controlled CFCs. U.S. holders should consult their tax advisers regarding the potential application of these rules to their investment in our Common Shares.

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

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

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

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

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

&nbsp;&nbsp;&nbsp;&nbsp;· the selective disclosure rules by issuers of material non-public information under Regulation FD.

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

***We may lose our foreign private issuer status in the future, which could result in significant additional cost and expense.***

While we currently qualify as a foreign private issuer, the determination of foreign private issuer status is made annually on the last business day of an issuer's most recently completed second fiscal quarter and, accordingly, our next determination will be made on December 31, 2023. In the future, we would lose our foreign private issuer status if we fail to meet the requirements necessary to maintain our foreign private issuer status as of the relevant determination date. For example, if 50% or more of our securities are held by U.S. residents and more than 50% of our senior management or directors are residents or citizens of the United States, we could lose our foreign private issuer status. As of the date of the prospectus, we estimate that % of our outstanding Common Shares are held by U.S. residents.

The regulatory and compliance costs to us under U.S. securities laws as a U.S. domestic issuer may be significantly more than costs we incur as a foreign private issuer. If we are not a foreign private issuer, we will be required to file periodic reports and registration statements on U.S. domestic issuer forms with the SEC, which are more detailed and extensive in certain respects than the forms available to a foreign private issuer. We would be required under current SEC rules to modify certain of our policies to comply with corporate governance practices required of U.S. domestic issuers and to prepare our financial statements in accordance with U.S. generally accepted accounting principles ("U.S. GAAP") rather than IFRS. Such conversion of our financial statements to U.S. GAAP would involve significant time and cost. In addition, we may lose our ability to rely upon exemptions from certain corporate governance requirements on U.S. stock exchanges that are available to foreign private issuers such as the ones described above and exemptions from procedural requirements related to the solicitation of proxies.

***Nasdaq may not continue to list our Common Shares on its exchange, which could limit the ability of investors to make transactions in our Common Shares and subject us to additional trading restrictions.***

To continue listing our Common Shares on Nasdaq, we are required to demonstrate compliance with the Nasdaq's continued listing requirements. There can be no assurance that we will be able to meet Nasdaq's continued listing requirement or maintain other listing standards. If our Common Shares are delisted by Nasdaq, and it is not possible to list the Common Shares on another national securities exchange, we expect the Common Shares to be quoted on an over-the-counter market. If this were to occur, we could face significant material adverse consequences, including:

&nbsp;&nbsp;&nbsp;&nbsp;· a
 less liquid trading market for our Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;· more
 limited market quotations for our Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;· determination
 that the Common Shares are "penny stocks" that requires broker to adhere to more
 stringent rules and possibly resulting in a reduced level of trading activity in the secondary
 trading market for our Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;· more
 limited research coverage by securities analysts;

&nbsp;&nbsp;&nbsp;&nbsp;· loss
 of reputation;

&nbsp;&nbsp;&nbsp;&nbsp;· more
 difficult and more expensive equity financings in the future; and

&nbsp;&nbsp;&nbsp;&nbsp;· decreased
 ability to issue additional securities or obtain additional funding in the future.

The U.S. National Securities Markets Improvement Act of 1996, which is a U.S. federal statute, prevents or pre-empts the states from regulating the sale of certain securities, which are referred to as "covered securities." If our Common Shares remain listed on Nasdaq, such shares will be covered securities. Although U.S. states are pre-empted from regulating the sale of our Common Shares, the federal statute does allow the states to investigate companies if there is a suspicion of fraud, and, if there is a finding of fraudulent activity, then the states can regulate or bar the sale of covered securities in a particular case. If our Common Shares were no longer listed on Nasdaq and therefore not "covered securities," we would be subject to regulation in each state in which it offers the securities.

***We are an "emerging growth company" under the JOBS Act and will be able to avail ourselves of reduced disclosure requirements applicable to emerging growth companies, which could make our Common Shares less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act, and intend to utilize certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies," including not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, Section 107 of the JOBS Act also provides that an emerging growth company can utilize the extended transition period provided in Section 7(a)(2)(B) of the Securities Act, for complying with new or revised accounting standards. We will not utilize the extended transition period provided under Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.

We cannot predict if investors will find our Common Shares less attractive because we may rely on these exemptions. If some investors find our Common Shares less attractive as a result, there may be a less active trading market for our Common Shares and the price of our Common Shares may be more volatile. We may utilize these exemptions until such time that we are no longer an emerging growth company. We would cease to be an emerging growth company upon the earliest to occur of (i) the last day of the fiscal year in which we have more than $1.235 billion in annual revenue; (ii) the last day of the fiscal year in which we qualify as a "large, accelerated filer"; (iii) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt securities; and (iv) the last day of the fiscal year in which the fifth anniversary of the effectiveness of the registration statement of which this prospectus forms a part occurs.

**General Risk Factors**

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***We will incur increased costs as a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives and corporate governance practices.***

As a public company, and particularly after we are no longer an "emerging growth company," we will incur significant legal, accounting and other expenses that we did not incur as a private company. The Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act, the listing requirements of Nasdaq and other applicable securities rules and regulations, such as U.S. and Canadian laws and regulations, impose various requirements on public companies (including companies listed on Nasdaq), including establishment and maintenance of effective disclosure and financial controls and corporate governance practices.

The expenses incurred by public companies generally for reporting and corporate governance purposes have been increasing. We expect that we will need to hire additional accounting, finance, compliance and other personnel or engage outside consultants in connection with becoming, and our efforts to comply with the requirements of being, a public company and its management and other personnel will need to devote a substantial amount of time towards maintaining compliance with these requirements. These requirements will increase our legal and financial compliance costs and will make some activities more time-consuming and costly. For example, we expect that the rules and regulations applicable to it as a public company may make it more difficult and more expensive for us to obtain certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. These laws and regulations could also make it more difficult for us to attract and retain qualified persons to serve on its board of directors, its committees, or as executive officers.

We are currently evaluating these rules and regulations and cannot predict or estimate the amount of additional costs we may incur or the timing of such costs. These rules and regulations are often subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. Furthermore, if we are unable to satisfy our obligations as a public company, we could be subject to delisting of our Common Shares, fines, sanctions and other regulatory action and potentially civil litigation.

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***Failure to build our finance infrastructure and improve our accounting systems and controls could impair our ability to comply with the financial reporting and internal controls requirements for publicly traded companies.***

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As a public company, we will operate in an increasingly demanding regulatory environment, which requires us to comply with the Sarbanes-Oxley Act, the regulations of Nasdaq, the rules and regulations of the SEC, expanded disclosure requirements, accelerated reporting requirements and more complex accounting rules. Company responsibilities required by the Sarbanes-Oxley Act include establishing corporate oversight and adequate internal control over financial reporting and disclosure controls and procedures. Effective internal controls are necessary for us to produce reliable financial reports and are important to help prevent financial fraud. Commencing with our fiscal year ending the year after this offering is completed, we must perform system and process evaluation and testing of our internal controls over financial reporting to allow management to report on the effectiveness of our internal controls over financial reporting in our Form 10-K filing for that year, as required by Section 404 of the Sarbanes-Oxley Act. Prior to this offering, we have never been required to test our internal controls within a specified period and, as a result, we may experience difficulty in meeting these reporting requirements in a timely manner. Further, in connection with the audit of our financial statements for the years ended December 31, 2021 and 2020, we and our independent registered public accounting firm identified a material weakness in our internal control over financial reporting.

We anticipate that the process of remediating the before mentioned material weakness in our internal control over financial reporting and building our accounting and financial functions and infrastructure will require significant additional professional fees, internal costs and management efforts. We expect that we will need to implement a new internal system to combine and streamline the management of our financial, accounting, human resources and other functions. However, such a system would likely require us to complete many processes and procedures for the effective use of the system or to run our business using the system, which may result in substantial costs. Any disruptions or difficulties in implementing or using such a system could adversely affect our controls and harm our business. Moreover, such disruption or difficulties could result in unanticipated costs and diversion of management attention. In addition, we may discover weaknesses in our system of internal financial and accounting controls and procedures that could result in a material misstatement of our financial statements. Our internal control over financial reporting will not prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system's objectives will be met. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud will be detected.

If we are not able to comply with the requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner, or if we are unable to maintain proper and effective internal controls, we may not be able to produce timely and accurate financial statements. If we cannot provide reliable financial reports or prevent fraud, our business and results of operations could be harmed, investors could lose confidence in our reported financial information and we could be subject to sanctions or investigations by Nasdaq, the SEC or other regulatory authorities.

 **

***Our disclosure controls and procedures may not prevent or detect all errors or acts of fraud.***

 **

Upon the completion of this offering, we will become subject to the periodic reporting requirements of the Exchange Act. We designed our disclosure controls and procedures to reasonably assure that information we must disclose in reports we file or submit under the Exchange Act is accumulated and communicated to management, and recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC. We believe that any disclosure controls and procedures or internal controls and procedures, no matter how well-conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. For example, our directors or executive officers could inadvertently fail to disclose a new relationship or arrangement causing us to fail to make any related party transaction disclosures. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people or by an unauthorized override of the controls. Accordingly, because of the inherent limitations in our control system, misstatements due to error or fraud may occur and not be detected.

 ****

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***Future changes in financial accounting standards or practices may cause adverse and unexpected revenue fluctuations and adversely affect our reported results of operations.***

Future changes in financial accounting standards may cause adverse, unexpected revenue fluctuations and affect our reported financial position or results of operations. Financial accounting standards in the United States are constantly under review and new pronouncements and varying interpretations of pronouncements have occurred with frequency in the past and are expected to occur again in the future. As a result, we may be required to make changes in our accounting policies. Those changes could affect our financial condition and results of operations or the way in which such financial condition and results of operations are reported. We intend to invest resources to comply with evolving standards, and this investment may result in increased general and administrative expenses and a diversion of management time and attention from business activities to compliance activities. See the section titled "*Management's Discussion and Analysis of Financial Condition and Results of Operations—Recent Accounting Pronouncements.*"

***Changes to tax laws may have an adverse impact on us and holders of our Common Shares.***

Changes in tax laws, including amendments to tax laws, changes in the interpretation of tax laws, or changes in the administrative pronouncements made, or positions taken, by the Canada Revenue Agency ("CRA") may have a material adverse effect on us. In addition, tax authorities could disagree with us on tax filing positions taken by us and any reassessment of our tax filings could result in material adjustments of tax expense, income taxes payable and deferred income taxes.

Changes in tax laws, including amendments to tax laws, changes in the interpretation of tax laws or changes in the administrative pronouncements made, or positions taken, by the CRA, may also have a material adverse effect on our shareholders and their investment in our Common Shares. Purchasers of our Common Shares should consult their tax advisors regarding the potential tax consequences associated with the acquisition, holding and disposition of our Common Shares in their particular circumstances.

***Unstable market and economic conditions may have serious adverse consequences on our business, financial condition and stock price.***

As a result of the COVID-19 pandemic and actions taken to slow its spread, the global credit and financial markets have recently experienced extreme volatility and disruptions, including severely diminished liquidity and credit availability, declines in consumer confidence, declines in economic growth, increases in unemployment rates and uncertainty about economic stability. There can be no assurance that further deterioration in credit and financial markets and confidence in economic conditions will not occur. Our general business strategy may be adversely affected by any such economic downturn, volatile business environment or continued unpredictable and unstable market conditions. If the current equity and credit markets deteriorate, it may make any necessary debt or equity financing more difficult, more costly and more dilutive. Failure to secure any necessary financing in a timely manner and on favorable terms could have a material adverse effect on our growth strategy, financial performance and stock price and could require us to delay or abandon development plans. In addition, there is a risk that one or more of our current service providers, manufacturers and other partners may not survive an economic downturn, which could directly affect our ability to attain our operating goals on schedule and on budget.

 **

***Any global systemic economic and financial crisis could negatively affect our business, results of operations, and financial condition.***

 **

The global financial markets have experienced significant disruptions since 2008 and the United States, Europe and other economies have experienced periods of recession. The recovery from the lows of 2008 and 2009 has been uneven and there are new challenges, including the escalation of the European sovereign debt crisis from 2011 and the slowdown of the PRC's economic growth since 2012, which may continue. There is considerable uncertainty over the long-term effects of the expansionary monetary and fiscal policies adopted by the central banks and financial authorities of some of the world's leading economies, including the United States and the PRC. There have also been concerns over unrest several geographic areas in the world, which have resulted in volatility in financial and other markets. There have also been concerns over the significant potential changes to United States trade policies, treaties and tariffs, including trade policies and tariffs regarding the PRC. There have also been concerns about the economic effect of the tensions in the relationship between the PRC and surrounding Asian countries. There could be in the future a number of domino effects from such turmoil on our business, including significant decreases in orders from our customers; insolvency of key suppliers resulting in product delays; inability of customers to obtain credit to finance purchases of our products and/or customer insolvencies; and counterparty failures negatively impacting our operations. Any systemic economic or financial crisis could cause revenue for the semiconductor industry as a whole to decline dramatically and could materially and adversely affect our results of operations.

 ****

 **

***If we fail to comply with environmental, health and safety laws and regulations, we could become subject to fines or penalties or incur costs that could have a material adverse effect on the success of our business.***

 **

We, and the third parties with whom we share our facilities, are subject to numerous environmental, health and safety laws and regulations, including those governing facility procedures and the handling, use, storage, treatment and disposal of hazardous materials and wastes. Each of our operations involve the use of hazardous and flammable materials, including chemicals and biological and radioactive materials. Each of our operations also produce hazardous waste products. We generally contract with third parties for the disposal of these materials and wastes. We cannot eliminate the risk of contamination or injury from these materials. We could be held liable for any resulting damages in the event of contamination or injury resulting from the use of hazardous materials by us or the third parties with whom we share our facilities, and any liability could exceed our resources. We also could incur significant costs associated with civil or criminal fines and penalties.

Although we maintain workers' compensation insurance to cover us for costs and expenses we may incur due to injuries to our employees resulting from the use of hazardous materials, this insurance may not provide adequate coverage against potential liabilities. We do not maintain insurance for environmental liability or toxic tort claims that may be asserted against us in connection with our storage or disposal of biological, hazardous or radioactive materials.

In addition, we may incur substantial costs in order to comply with current or future environmental, health and safety laws and regulations. These current or future laws and regulations may impair our research and development. Failure to comply with these laws and regulations also may result in substantial fines, penalties or other sanctions.

 ****

***If securities or industry analysts do not publish research or publish inaccurate or unfavourable research about our business, our stock price and trading volume could decline.***

The trading market for our Common Shares will depend in part on the research and reports that securities or industry analysts publish about us or our business. Securities and industry analysts do not currently, and may never, publish research on our Company. If no or only very few securities analysts commence coverage of us, or if industry analysts cease coverage of us, the trading price for our Common Shares would be negatively affected. If one or more of the analysts who cover us downgrade our Common Shares or publish inaccurate or unfavourable research about our business, our Common Shares price would likely decline. If one or more of these analysts cease coverage of us or fail to publish reports on us regularly, demand for our Common Shares could decrease, which might cause our Common Shares price and trading volume to decline.

 **

***We indemnify our directors and officers against liability, and this indemnification could negatively affect our operating results.***

 **

In accordance with our bylaws, we indemnify our officers and our directors for liability arising while they are carrying out their respective duties. Our bylaws also allow for reimbursement of certain legal defenses. In addition to this, we intend to provide insurance to our directors and officers against certain liabilities. The costs related to such indemnification and insurance coverage, if either one of them or both were to increase, could materially adversely affect our operating results and financial condition.

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***You should read the entire prospectus carefully and we strongly caution you not to place any reliance on any information contained in press articles or other media regarding us and the listing.***

We wish to emphasize to prospective investors that we do not accept any responsibility for the accuracy or completeness of the information contained in any press articles or other media coverage regarding us or the offering, and such information that was not sourced from or authorized by us. We make no representation to the appropriateness, accuracy, completeness or reliability of any information contained in any press articles or other media coverage about our business or financial projections, share valuation or other information. Accordingly, prospective investors should not rely on any such information and should rely only on information included in this prospectus in making any decision as to whether to invest in our Common Shares.

**SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS**

Certain statements contained in this prospectus, including statements included or incorporated by reference in this prospectus, are not statements of historical fact and constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and are intended to be protected by the safe harbor provided by such provisions. These forward-looking statements reflect our current expectations and views of future events and are contained principally in the sections entitled "*Prospectus Summary*," "*Risk Factors*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Business.*"

Known and unknown risks, uncertainties, and other factors, including those listed under "*Risk Factors*," may cause our actual results, performance or achievements to be materially different from those expressed or implied by the forward-looking statements. Words such as "believes," "expects," "anticipates," "estimates," "intends," "would," "continue," "should," "may," or similar expressions, or the negatives thereof, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. We have based these forward-looking statements largely on our current expectations and projections about future events that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements include statements relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· our goals and strategies;

· our expectations regarding demand for and market acceptance of our
 products and services;

· our expectations regarding our relationships with customers, suppliers,
 investors, borrowers and partners;

· our future business development, results of operations and financial
 condition;

· competition in our industry;

· relevant government policies and regulations governing our business
 and industry;

· our proposed use of proceeds from this offering;

· general economic and business conditions in China and elsewhere; and

· assumptions underlying or related to any of the foregoing.

These forward-looking statements involve various risks and uncertainties. Although we believe that our expectations expressed in these forward-looking statements are reasonable, our expectations may later be found to be incorrect. Our actual results could be materially different from our expectations. Important risks and factors that could cause our actual results to be materially different from our expectations are generally set forth in "*Prospectus Summary-Our Challenges*," "*Risk Factors*," "*Management's Discussion and Analysis of Financial Condition and Results of Operations,*" "*Business*" and other sections in this prospectus. You should read thoroughly this prospectus and the documents that we refer to with the understanding that our actual future results may be materially different from and worse than what we expect. We qualify all of our forward-looking statements by these cautionary statements.

The forward-looking statements made in this prospectus relate only to events or information as of the date on which the statements are made in this prospectus. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. You should read this prospectus and the documents that we refer to in this prospectus and have filed as exhibits to the registration statement, of which this prospectus is a part, completely and with the understanding that our actual future results may be materially different from what we expect.

**USE OF PROCEEDS**

We estimate that we will receive net proceeds from the sale of our Common Shares of approximately $, based upon an issuance of Common Shares at an assumed initial public offering price of $ per share, the midpoint of the range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and commissions and estimated offering expenses. If the underwriters' option to purchase additional Common Shares is exercised in full, we estimate, based on the assumptions stated above, that we will receive net proceeds of approximately $, after deducting estimated underwriting discounts and commissions and estimated offering expenses.

Each $1.00 increase (decrease) in the assumed initial public offering price of $ per share, the midpoint of the range set forth on the cover page of this prospectus, would increase (decrease) the net proceeds to us from this offering by approximately $ million, assuming the number of shares offered, as set forth on the cover page of this prospectus, remains the same and after deducting estimated underwriting discounts and commissions.

Based upon the assumptions stated above, we intend to use the net proceeds of this offering (totaling approximately $10 million) as follows:

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| | |
|:---|:---|
| | **Use of Net<br> Proceeds<br> Approximately<br> in US$** |
| Expansion of the Nisku, Alberta, Canada ASAC manufacturing facility | 3700000 |
| ESAC pilot project | 2600000 |
| Working Capital | 2500000 |
| Sales and Marketing | 800000 |
| Research and Development | 400000 |
| Total | 10000000 |

---

The foregoing represents our current intentions based upon our present plans and business conditions to use and allocate the net proceeds of this offering. Our management, however, will have some flexibility and discretion to apply the net proceeds of this offering. The occurrence of unforeseen events or changed business conditions may result in application of the proceeds of this offering in a manner other than as described in this prospectus. The timing and amount of our actual expenditures will be based on many factors, including cash flows from operations and the anticipated growth of our business.

**DIVIDEND POLICY**

We have never declared or paid any dividends on our Common Share. We do not anticipate paying any cash dividends on our Common Shares in the foreseeable future. We currently intend to retain any future earnings to fund business development and growth. Any future determination to declare cash dividends, if any, will be made at the discretion of our Board, subject to applicable laws, and will depend on a variety of factors, including our financial condition, results of operations, capital requirements, contractual restrictions, business prospects, general business or financial market conditions and other factors that our Board may deem relevant.

Under the ABCA, we may not declare or pay a dividend if there are reasonable grounds for believing that (i) we are, or would after the payment be, unable to pay our liabilities as they become due, or (ii) the realizable value of our assets would thereby be less than the aggregate of our liabilities and stated capital of all classes.

**CAPITALIZATION**

The following table sets forth our capitalization as of , 2022:

&nbsp;&nbsp;&nbsp;&nbsp;· On
 an actual basis;

&nbsp;&nbsp;&nbsp;&nbsp;· On
 a pro forma basis to give effect to the issuance of Common Shares by us upon the
 automatic conversion of the Notes in the total outstanding principal amount and
 accrued interest of $; and

&nbsp;&nbsp;&nbsp;&nbsp;· On
 a pro forma basis to give effect to the issuance of Common Shares by us in this
 offering at the assumed initial public offering price of $ per share, the midpoint
 of the range set forth on the cover page of this prospectus, after deducting the estimated
 underwriting commissions and estimated offering expenses and assuming that the underwriters
 do not exercise their over-allotment option.

You should read this table in conjunction with our financial statements and related notes appearing elsewhere in this prospectus. See "*Use of Proceeds*" and "*Description of Share Capital*."

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| | | | |
|:---|:---|:---|:---|
|  | **December 31, 2021** | **December 31, 2021** | |
|  | **Actual** | **Pro Forma<sup>(1)</sup>** | **Pro Forma**<br>**As Adjusted<sup>(1)(2)</sup>** |
| Bank loans – current and noncurrent | $— | $— |  |
| **Shareholder's Equity:** |  |  |  |
| Common Shares, no par value |  |  |  |
| Contributed surplus |  |  |  |
| Retained earnings |  |  |  |
| Accumulated other comprehensive income |  |  |  |
| Total shareholders' equity attributable to the Company |  |  |  |
| Noncontrolling interest |  |  |  |
| Total shareholders' equity |  |  |  |
| **Total capitalization** | $— | $— | $— |

---

&nbsp;&nbsp;&nbsp;&nbsp;(1) The number
 of issued and outstanding shares as of , 2022 excludes shares of Common Shares reserved for issuance under our
 incentive option plan, Common Shares issuable upon the exercise of the underwriter's over-allotment option and 
 Common Shares issuable upon the exercise of the Representative's Warrant (shares if the underwriters exercise their
 option to purchase additional shares in full).

(2) Each $1.00
 increase or decrease in the assumed initial public offering price of $ per share (the midpoint of the price range set forth
 on the front cover page of this prospectus) would increase or decrease, as applicable, the amount of our cash and cash equivalents,
 additional paid-in capital and total shareholders' equity by $, assuming that the number of shares offered by us,
 as set forth on the cover page of this prospectus, remains the same, after deducting estimated underwriting discounts and commissions
 payable by us. An increase or decrease of our Common Shares offered by us would increase or decrease, as applicable, the
 amount of our cash and cash equivalents, additional paid-in capital and total shareholders' equity by $, assuming
 an initial public offering price of $(the midpoint of the price range set forth on the front cover page of this prospectus)
 after deducting estimated underwriting discounts and commissions payable by us.

The number of shares of our Common Shares that would be outstanding after this offering is based on shares of our Common Shares outstanding as of , 2023, assuming the sale of Common Shares.

**DILUTION**

If you invest in our Common Shares, your interest will be diluted to the extent of the difference between the initial public offering price per Common Share and the pro forma as adjusted net tangible book value per Common Share after the offering. We calculate our historical net tangible book value per share by dividing our total tangible assets less our total liabilities by the number of our outstanding Common Shares. After giving effect to the issuance of shares of Common Shares upon the conversion of the Notes, our pro forma net tangible book value as of December 31, 2021 would have been $ or approximately $ per share of our Common Share.

After giving effect to the pro forma adjustments set forth above and the issuance of shares in this offering at an assumed initial public offering price of $ per share (the midpoint of the price range set forth on the front cover page of this prospectus) for net proceeds of approximately $ our pro forma as adjusted net tangible book value as of December 31, 2021 would have been $ or approximately $ per share of our Common Share. This represents an immediate increase in pro forma net tangible book value per share of $ to the existing shareholders and an immediate dilution in pro forma net tangible book value per share of $. The following table illustrates this per share dilution to new investors:

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| | |
|:---|:---|
| Assumed initial public offering price per share | $|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pro forma net tangible book value per share as of December 31, 2021 | $— |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Increase in pro forma net tangible book value per share attributable to the offering |  |
| Pro forma as adjusted net tangible book value (deficit) per share as of December 31, 2021 |  |
| Dilution in pro forma as adjusted net tangible book value per share to new investors | $|

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A $1.00 increase or decrease in the assumed public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, would increase or decrease the pro forma as adjusted net tangible book value by $ million, the pro forma as adjusted net tangible book value per share after this offering by $ per share and the dilution in pro forma as adjusted net tangible book value per share to investors in this offering by $ per share, assuming that we will issue Common Shares in this offering and after deducting the estimated underwriting discount and offering expenses payable by us. If the underwriters' option to purchase additional shares in this offering is exercised in full, the pro forma as adjusted net tangible book value would be $ per share and the dilution to new investors would be $ per share.

We may also increase or decrease the number of shares we are offering. A one million share increase in the number of shares offered by us would increase the pro forma as adjusted net tangible book value per share by $ and decrease the dilution per share to investors participating in this offering by $, assuming the assumed initial public offering price of $ per share remains the same and after deducting the estimated underwriting discount and estimated offering expenses payable by us. A one million share decrease in the number of shares offered by us would decrease the pro forma as adjusted net tangible book value per share after this offering by $ and increase the dilution per share to new investors participating in this offering by $, assuming the assumed initial public offering price of $ per share remains the same and after deducting the estimated underwriting discount and estimated offering expenses payable by us.

The following charts illustrate our pro forma as adjusted proportionate ownership, upon completion of this offering by present shareholders and investors in this offering, compared to the relative amounts paid by each, assuming the sale of Common Shares at an assumed public offering price of $ per share. The charts reflect payment by present shareholders as of the date the consideration was received and by investors in this offering for the assumed number of Common Shares at the assumed offering price without deduction of commissions or expenses. The charts further assume no changes in net tangible book value other than those resulting from this offering.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Average<br> Price** |
|  | **Amount**<br> **(#)** | **Percent**<br> **(%)** | **Amount<br> ($)** | **Percent**<br> **(%)** | **Per Share**<br> **($)** |
| Existing shareholders% |  |  |  |  |  |
| New investors% |  |  |  |  |  |
| Total% |  |  |  |  |  |

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The table below shows what happens when over-allotment option is exercised, based upon the same assumptions stated above:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Shares Purchased** | **Shares Purchased** | **Total Consideration** | **Total Consideration** | **Average Price** |
|  | **Amount<br> (#)** | **Percent<br> (%)** | **Amount<br> ($)** | **Percent<br> (%)** | **Per Share<br> ($)** |
| Existing shareholders% |  |  |  |  |  |
| New investors% |  |  |  |  |  |
| Total% |  |  |  |  |  |

---

If the underwriters' over-allotment option of shares is exercised in full, the number of shares held by existing shareholders would be reduced to % of the total number of shares to be outstanding after this offering; and the number of shares held by the new investors would be increased to shares, or %, of the total number of shares outstanding after this offering.

The number of shares of our Common Shares reflected in the discussion and tables above is based on Common Shares outstanding as of December 31, 2021.

The pro forma and pro forma as adjusted information discussed above is illustrative only. Our pro forma and pro forma as adjusted net tangible book values following the completion of this offering is subject to adjustment based on the actual initial public offering price of our Common Shares and other terms of this offering determined when this offering goes effective.

The extent that outstanding options or warrants, if any, are exercised, you will experience further dilution. In addition, we may choose to raise additional capital due to market conditions or strategic considerations even if we believe we have sufficient funds for our current or future operating plans. To the extent that additional capital is raised through the sale of equity or convertible debt securities, the issuance of these securities may result in further dilution to our shareholders.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION** 

**AND RESULTS OF OPERATIONS**

*This management's discussion and analysis ("MD&A") details our financial condition, results of operations and cash flows for the years ended December 31, 2021 and 2020 and should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2021 and 2020. The financial statements have been prepared in Canadian dollars in accordance with IFRS and under supervision of auditors accredited by the Public Company Accounting Oversight Board ("PCAOB").* 

 

*Unless otherwise indicated, all share amounts and per share amounts in this prospectus have been presented giving effect to a reverse split of our Common Shares at an approximate rounded ratio of 1-for-0.6445 per share on December 25, 2021 and a subsequent reverse split of our Common Shares at an approximate rounded ratio of 1-for-0.51 share on December 31, 2022 as a pre-offering consolidation. The split has not been applied retrospectively; however they will be applied retrospectively upon the Company completing its year-ended 2022 Consolidated Financial Statements*

 

*This MD&A contains forward-looking information and forward-looking statements that reflect our plans, estimates and beliefs and are based on certain expectations, projections, and assumptions. Our actual results could differ materially from those discussed in the forward-looking statements. This information is subject to a number of risks and uncertainties which may contribute to these differences including those listed below and elsewhere in this prospectus, particularly in the "Risk Factors" section. For additional information refer to the "Special Note Regarding Forward-Looking Statements."*

**Overview**

AdvEn is completing the construction of an approximately 36,000 square foot activated carbon manufacturing, electrode pilot plant, and research facility in Nisku, Alberta, Canada. The Nisku plant, once completed, is designed to manufacture up to 1,200 metric tons of the Company's patented ASAC produced from oil and gas refinery residues, petroleum and bio-diesel by-products and bitumen. We received non-dilutive, and non-repayable, financial support from the Alberta and Canadian governments (Alberta Innovates and Sustainable Development Technology Canada respectively) for this capital project. ASAC will be available in both powdered and granular forms. It will be primarily used in super capacitor manufacturing, pharmaceutical manufacturing, industrial manufacturing, water purification, environmental protection and in food and beverage production. Buyers of ASAC-like materials for super capacitors use the products as conductive material for electrodes in the manufacture and assembly of super capacitors. Major pharmaceutical companies use super activated carbon for purification of vitamins including A, B, C, D, H, K, and folic acid. It is also used to deodorize certain enzymes, including amylase, glucose isomerase, lipase, maxatase, and protease, prior to their use in other processes. It is also used to isolate penicillin, purify pain killers, contrast media and intravenous solutions and as an active pharmaceutical ingredient in various formulations.

We have commenced work in 2022 on a dry ESAC pilot project co-domiciled in Nisku. The installation involves the use of proprietary mixing and rolling systems, installed in a prefabricated clean room engineered to virtually eliminate airborne particulates, and the processing of up to 15 meters per second of electrode film using our patented ESAC technologies. This project is supported by the National Research Council of Canada through its Industrial Research Assistance Program. Unlike slurry coating systems, ESAC fabrication requires no solvents or volatile chemicals, fewer manufacturing steps with less equipment, and consumes less electricity and water – thereby creating a significant reduction in greenhouse gas emissions and improving sustainability. ESAC has applications in super capacitors, lithium-ion batteries, sodium batteries and next generation battery systems currently employed in, or in development by, automotive manufacturing, transportation utilities and clean energy applications.

We also have a pipeline of advanced technologies under various stages of research and development including carbon black, hard carbon for electrode production, a specialized carbon for enhanced gaseous CO<sup>2</sup> capture applications, and other applications. See page of the "*Business*" section.

Our primary raw materials are sourced from one of the seven oil and gas refineries in western Canada in close proximity to the Nisku plant. We also source raw materials from different chemical manufacturers which, when combined, are used for the Company's proprietary ASAC and ESAC processes.

Our first main product will be ASAC produced to conform to our customer's specifications in batches. Our ASAC customers are primarily direct activated carbon companies that utilize ASAC directly in their manufacturing processes; and wholesale distributors. The Company expects its customers to be based in Canada, the United States, Europe and the PRC and it intends to use export insurance for its international distribution. The primary end users of our ASAC will be super capacitor manufacturers, advanced battery manufacturers, anode materials companies and manufacturers, pharmaceutical companies, agricultural companies, companies engaged in environmental protection, and companies using advanced carbon filtration for liquids and gases in their industrial processes. In addition, we have provided activated carbon related research services to two major oil companies of approximately $187,000 in 2021 ($11,000 in 2020). The technical services we provided included sample testing and the viability of using certain materials for ASAC production. We expect to continue to provide similar technical services to Suncor and the Company's other customers from time-to-time if requested. The Nisku plant has been characterized as a "demonstration plant," however management projects the cash flow generated by sales of ASAC will eventually finance its ongoing current and future operations.

In total, the Company received $4.8 million from grants, subsidies and tax credits from the Canadian and Alberta governments accounted for during 2021 including:

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| | | | |
|:---|:---|:---|:---|
| (in '000s, except as noted) | **Type** | **Amount**<br> **Received** | **Amount**<br> **Repayable** |
| Alberta Innovates | Grant | $2145 | $Nil |
| Sustainable Development Technology Canada | Grant | 1448 | Nil |
| Scientific Research and Experimental Development | Tax Credit | 1028 | Nil |
| Canada Emergency Business Account | Interest Free Loan | 60 | 40 |
| Industrial Research Assistance Program | Subsidy | 78 | Nil |
| Total |  | $4759 | $40 |

---

We also reported a 2021 working capital deficit of approximately $1.8 million largely due to the carrying value of its bridge financing Notes of $3.5 million. These notes are interest bearing at 10% per annum on a one-year term and are convertible into the common shares of the Company at a 35% discount to the price of shares established for its initial public offering. Subsequent to the period, the holder of the related party promissory note converted its note to participate in the bridge financing on favorable terms to the original note which, on an adjusted basis for December 31, 2021, increases the Notes to CDN$3.9 million.

On an adjusted basis, assuming conversion of some or all of the notes, the working capital as at December 31, 2021 would be as follows:

---

| | | |
|:---|:---|:---|
| (in '000s, except as noted) | 50%<br> Conversion | 100%<br> Conversion |
| Year ended December 31, 2021 |  |  |
| Initial working capital | $(1695) | $(1695) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plus: share conversion | 1973 | 3945 |
| Adjusted working capital following note conversion as at December 31, 2021 | $278 | $2253 |

---

**Select Financial Highlights**

**Financial Results**

The following tables summarize our financial results from operations.

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| | | | |
|:---|:---|:---|:---|
|  | Years ended December 31, | Years ended December 31, | Years ended December 31, |
| (in '000s, except as noted) | 2021 | 2020 | Change |
| Revenue | $nil | $nil | nil |
| Loss from operations | $(3647) | $(837) | -336% |
| Net loss and comprehensive loss | $(3221) | $(872) | -95% |
| Weighted avg. common shares outstanding basic and dilutive | 25585 | 20849 | 23% |

---

**Financial Position**

---

| | | |
|:---|:---|:---|
| As at December 31, (in '000s, except as noted) | 2021 | 2020 |
| Cash and cash equivalents | $2720 | $9 |
| Working capital | $(1695) | $1276 |
| Total assets | $11001 | $2740 |
| Long term liabilities | $4275 | $25 |
| Common Shares and other securities outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;Common Shares | 32750 | 23763 |
| &nbsp;&nbsp;&nbsp;Notes | $3219 | $nil |
| &nbsp;&nbsp;&nbsp;Options | 731 | 42 |

---

**Mission and Vision**

Our mission is to create value through the commercialization of carbon-centric advanced technologies utilizing industrial by-products, converting refinery residues into non-combustible materials for energy storage and a clean environment.

Our vision is to become the world's leading producer of carbon-based precursors for energy storage and clean environment applications with superior technical performance, market-compatible prices and sustainability, and maintain a nimble culture centered on innovation, inclusiveness, and unconditional positive regard.

**Growth Strategies**

 ****

***Increase the Capacity of ASAC Production.*** Since the demand for super activated carbon for clean energy devices in general has been increasing in recent years and is forecasted to continue to grow into the future, our facility in Nisku was specifically designed to allow for an increase in production from its initial capacity of 400 metric tons per year to 1,200 metric tons per year. Recent advances in the technology from our research and development efforts have shown that the Company may be able to increase its production capacity by up to 33% through process optimization using the existing plant design and equipment resulting in a total capacity from the Nisku facility of up to 1,200 metric tons. The Company is also currently exploring opportunities to blend its ASAC products with third-party suppliers where the technical requirements of customers fall below our production standards thereby increasing supply. AdvEn will use some proceeds from this and subsequent offerings to commence the engineering design work for a 10,000 metric ton ASAC manufacturing facility which the Company intends to finance separately in 2023.

***Establish and Grow its Customer Base.*** AdvEn has secured several letters of intent from customers in aggregate representing approximately 2,270 metric tons of ASAC sales. The Company is currently re-confirming the commitment and will be engaging with each firm to send samples in the 1<sup>st</sup> quarter of 2023. Proposed volumes include: Tianjin Lishen Battery Joint-Stock Co., Ltd. (Tianjin, China) – 120 metric tons per annum; Changchun Meihe Science and Technology Development Co. (Changchun, China) – up to 500 metric tons initially expanding to 2,000 metric tons per annum thereafter; and Flow Filters Corp. (Ontario, Canada) – up to 150 metric tons per annum. In addition to direct sales, AdvEn intends to establish 3<sup>rd</sup> party distribution channels with well-established distributors once its production capacity exceeds initial orders.

***Focus on Products with Growing Demand.*** Due to the rapid development of industrial technology, stricter environmental protection regulations and increased attention to food safety, there has been increased demand for super activated carbon used in electrical storage; electronics; environmental hazard mitigation; water, food and beverage industries; and as raw materials, intermediates and finished products for pharmaceutical applications. AdvEn believes it is well-positioned to meet each of these growing areas of demand. We will seek to continue our innovative approach, while ensuring reliability and efficiency in the delivery supply chain, with a virtually unlimited supply of raw materials. We will continue designing and manufacturing super activated carbon products for use in a broad range of applications, while maintaining a diversified customer base and product line. AdvEn will seek to focus on its products with growing demand and high margins; and capitalize on opportunities to increase revenue and profitability.

***ESAC Pre-Production Pilot.*** The Company is taking a technology forward approach to the market and is investing in the pre-production pilot of its breakthrough ESAC dry electrode technology which will produce up to 15 meters per second of electrode film for customer testing and validation; and for early pre-sales of material. In laboratory conditions, ESAC has been produced with a simplified and more efficient manufacturing process that conventional slurry electrode production resulting in a lower energy consumption of up to 90%; and less equipment and capital cost to produce. ESAC has also demonstrated an increase in active material loading and energy density when compared to the slurry method of production. We plan to introduce ESAC to primary end-users such as auto manufacturers, OEMs and well-established research institutes in the interest of developing a collaborative model with existing industry participants.

***Continued Research and Development.*** In addition to its ESAC pilot, we have a pipeline of technology development and is seeking new proprietary applications for its existing products, technologies and processes. In addition, as part of its introduction to industry partners, we plan to increase its research and development efforts and develop more efficient methods for producing super activated carbon thereby increasing the sustainability of its materials business. We have been working on the applications for our product using alternative raw materials including recycled oils and liquid biomass. We are seeking to reduce our reliance on a single source of raw materials and expand our network of suppliers within Canada and the U.S. in order to plan for larger scale production facilities.

 ****

***Explore New Business Opportunities.*** We have been monitoring possible business opportunities related to electrode and activated carbon industries including the super capacitor; battery business; pharmaceuticals, and in the environmental restoration business including water and air purification. In the long-term, we plan to strategically establish or acquire companies that use activated carbon as raw materials either directly or acting as distributors. We do not plan to use the net proceeds from this offering to fund these long-term plans and have not entered into any binding agreement for any acquisition nor identified any definite acquisition target. By expanding our business vertically in the super activated carbon industry, we hope to increase our pricing power and minimize supply chain risks in our Super Activated Carbon Production business.

**Factors Affecting our Results of Operations**

***Impact of COVID-19 Outbreak***

 ****

In December 2019, COVID-19 was first identified in Wuhan, the PRC. On March 11, 2020, the World Health Organization ("WHO") declared COVID-19 a pandemic – the first pandemic caused by a coronavirus. The outbreak has reached more than 160 countries, resulting in the implementation of significant government measures, including lockdowns, closures, quarantines, and travel bans, intended to control the spread of the virus. The during this period, the Canadian government ordered quarantines, travel restrictions, and the temporary closure of restaurants, stores and other facilities.

Similarly, the Chinese provinces surrounding Shanghai, where we acquired the majority of its equipment, were subject to a travel quarantines, power restrictions, the temporary closure of stores and manufacturing facilities and shelter-in-place orders that restricted access to equipment manufacturing facilities by workers.

Shanghai and nearby provinces were limited in their power consumption from September through October 2021 which caused significant delays in manufacturing of equipment. COVID-19 related interruptions also impacted manufacturers' ability to access steel and raw materials further delaying manufacturing. Manufacturing delays combined with measures to combat COVID-19, equipment orders made in 2021 were pushed six to eight months into 2022 and resulted in operating and shipping cost overruns. Although the manufacturing, shipping and transportation have started to recover since the end of December, 2021, construction of the Company's plant in Nisku, Alberta and been delayed more than six months and is an estimated $2.8 million over the original capital budget of $13.3 million (21% overrun) which has materially affected our cash flows, financial and operating results. The Company requires additional investment capital to complete the plant and commence operations.

While the Company does not foresee any additional impacts on the construction project in Nisku, the impact has delayed forecasted production and revenue targets for 2022 into 2023. Any additional impact from COVID-19 or other global pandemics may further impact our plant commissioning and production of products, conversion of customers into sales and delay the Company's business plans.

***Government policies may impact our business and operating results.***

 ****

We have not seen any negative impact of unfavorable government policies upon our business directly. However, our business and operating results will be affected by the overall economic growth and government policies in Canada as it relates to international business relationships, in particular with the United States ("US"), the PRC and European countries. The conflict between the Russian Federation ("Russia") and Ukraine put negative pressure on the North American capital markets which negatively impacted the Company's sector peers. The conflict has also put increased world scrutiny on the relationship between PRC and the Republic of China ("Taiwan"). The response to global issues by the Canadian and US governments could reduce demand for the Company's products among identified potential customers and could materially and adversely affect our results of operations. However, the Company will seek to make adjustments as required if and when government policies shift.

In addition, we are reliant on access to refinery residues and/or bitumen once its Nisku facility is completed. While the Company uses these industrial by-products to produce non-combustible super activated carbon products for the electrical and environmental industries, a change in government policy regarding the mining and handling of this material would materially and adversely affect our results of operations. Currently, both the Alberta and Canadian governments have supported the Nisku project by providing grants and grant commitments totalling approximately CDN$7.7 million.

***Exchange rate fluctuations may significantly impact our business and profitability***

 ****

The majority of our major equipment is purchased from the PRC and some of the chemicals used in our activation process are also purchased from the PRC, using both RMB and United States currency. Thus, our cost of expansion, operating costs and operating results matt be impacted by exchange rate fluctuations between RMB, US dollars and Canadian dollars. For the 12 months ended December 31, 2021 and 2020, the Company had an unrealized foreign currency translation loss of $81,073 and $7,894 respectively, because of changes in the exchange rates.

***Access to additional investment capital***

 ****

We are reliant on access to investment capital to complete and commercialize its ASAC and ESAC technologies and the accompanying Consolidated Financial Statements have been prepared on a going concern basis, which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The Company is focused on raising additional capital to complete the Plant in order to research, develop and commercialize ASAC, ESAC and other industry-leading technology. The Company's ability to continue as a going concern is dependent on accessing additional funding and support from investors and government agencies. The financial statements and this MD&A do not reflect adjustments in the carrying value of the assets and liabilities, the reported expenses and losses, and the statement of financial position classifications that would be necessary if the going concern assumption were not appropriate.

**Selected Annual Information**

---

| | | |
|:---|:---|:---|
| (in '000s, except as noted) | 2020 | 2019 |
| Revenue | $- | $- |
| Loss from operations | $(837) | $(2630) |
| Net loss and comprehensive loss | $(872) | $(2621) |
| Earnings per share |  |  |
| Total assets | $2740 | $505 |
| Total non-current liabilities | $25 | $36 |
| Weighted avg. common shares outstanding | 20849 | 5621 |
| Common shares outstanding | 23763 | 19892 |

---

**Results of Operations**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year ended December 31, | Year ended December 31, | Variance | Variance |
| (in '000s) | 2021 | 2020 | Amount | Change |
| Revenue | $- | $- | $- |  |
| Expenses: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock based compensation | 1527 |  | 1527 | n/a |
| &nbsp;&nbsp;&nbsp;Bad debt expense | 553 |  | 553 | n/a |
| &nbsp;&nbsp;&nbsp;Legal fees | 454 | 9 | 445 | 4944% |
| &nbsp;&nbsp;&nbsp;Consulting fees | 353 |  | 353 | n/a |
| &nbsp;&nbsp;&nbsp;Research and development | 243 | 554 | (311) | -56% |
| &nbsp;&nbsp;&nbsp;Depreciation: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of use assets | 179 | 74 | 105 | 142% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment | 172 | 113 | 59 | 52% |
| &nbsp;&nbsp;&nbsp;Accounting and audit fees | 78 | 49 | 29 | 59% |
| &nbsp;&nbsp;&nbsp;General and administration | 42 | 14 | 28 | 200% |
| &nbsp;&nbsp;&nbsp;Sales and marketing | 28 | 15 | 13 | 87% |
| &nbsp;&nbsp;&nbsp;Insurance | 17 | 9 | 8 | 89% |
| Loss from operations: | (3647) | (837) | 2809 | 336% |
| Other items: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Finance expenses | 295 | 40 | 255 | 638% |
| &nbsp;&nbsp;&nbsp;Loss on foreign exchange | 81 | 8 | 73 | 913% |
| &nbsp;&nbsp;&nbsp;Change in fair value | 3 |  | 3 | n/a |
| &nbsp;&nbsp;&nbsp;Government grants | (717) |  | (717) | n/a |
| &nbsp;&nbsp;&nbsp;Government subsidies | (88) | (12) | (76) | 633% |
| Total loss and comprehensive loss: | (3221) | (872) | 2347 | 269% |

---

During the period ending December 31, 2021, we incurred a loss from operations of $3.6 million ($837,000 in 2020) resulting primarily from its employee retention strategies in the form of $1.5 million in stock based compensation which was measured at fair value as at December 31, 2021 (2020 nil); $553,000 in bad debt expense (2020 nil) resulting from the write-down of funds advanced to continue the operations of technology spinout companies AdvEn Solid Bitumen Inc. and Tangold Inc.; a spike in legal and consulting fees to $807,000 (2020 $9,000) due to legal support required for two financings, pursuit of government grants, two technology spinout transactions spanning 11 months, and the share exchange between AdvEn Industries Inc. and AdvEn Inc. (formerly Nano Innovations Inc.); and depreciation.

**Stock-based Compensation**

We awarded 2,968,756 share purchase options at a weighted average exercise price of $0.11 per share as performance awards to the Chief Technology Officer and two companies controlled by the Chief Executive Officer during the period from January 1, 2021 through December 31, 2021 (2020 nil). On August 31, 2021, the directors of AdvEn Inc. approved a stock option plan that provided for up to 10% of the total issued and outstanding shares of the Company to be issued from time-to-time by the board to employees, directors, officers and key consultants of the Company (the "Plan").

Prior to the completion of the share exchange between AdvEn Inc. and AdvEn Industries Inc. on December 25, 2021, share purchase options were granted on an ad hoc, as needed, basis by the board of directors of AdvEn Industries Inc. During the period from January 1, 2021, through December 25, 2021 the board awarded 2,237,312 share purchase options to the senior executives and directors of AdvEn Industries Inc. These options were exercised at $0.08 during the same period resulting in proceeds of $174,000 (2020 nil) with a fair value of $1.5 million (2020 nil). Similarly, the board of AdvEn Industries Inc. canceled 41,892 share purchase options previously granted to employees of the Company.

Subsequent to December 25, 2021, the Plan became the formal stock option plan for the combined legal entity.

During 2021, we issued 731,444 share purchase options to the management of AdvEn Inc. and employees of the combined entity with a vesting period of two years and exercisable at $0.30 [n.b. need to be adjusted based on initial public offering split] per share. The options have reduced the vesting period by 50% at the time of an initial public offering.

The fair value of share purchase options is calculated as at the option grant's effective date using a call option pricing model that considers the exercise price, vesting period and expiry date of the grant; along with certain assumptions regarding market pricing, risk free interest rates, and volatility. Share-based compensation is amortized over the vesting period and recognized in profit and loss and accrued in equity. As the Company is a private corporation preparing for a liquidity event and share purchase options may be exercised at any time once vested, the Company elected to use a binomial call option pricing model (see Note 19 of the Notes to the Consolidated Financial Statements).

As at December 31, 2021, there was $288,000 of unrecognized compensation cost related to options granted under the Plan. This compensation cost is expected to be recognized over a period of from two to three years depending on the grant date.

**Bad Debt Expense**

During 2021, AdvEn Industries Inc. licensed certain technologies to two companies controlled by AdvEn Industry Inc. shareholders (the "Spinout") in order that the original shareholders of AdvEn Industries Inc. would benefit from unrelated technologies to ASAC and ESAC prior to the share exchange with AdvEn Inc. During the period from February 5, 2021, the effective date of the Spinout, through to December 31, 2021, AdvEn accumulated $553,000 in recoverable expenses in order to support the ongoing operations of the Spinout companies during their transition period. In determining the collectability of the amounts due, management assessed the financial strength, independence and reliance on the Company to determine if each entity could repay the obligations and continue operations as a going concern. While each entity has its own management and operates independently of AdvEn, each Spinout company is dependent on accessing additional funding and support from investors as they have no cash flow from operations with which to repay the amounts owing to AdvEn.

As a result, we took a write down of $533,000 in 2021 to reflect the future uncertain collectability of these amounts.

**Research and Development Expenses**

The Company is currently working on multiple research and development projects to deliver high-performance technologies for converting hydrocarbon by-products to non-combustion applications for electrical energy storage and environmental mitigation with superior performance, lower production costs and significant improvements in greenhouse gas emissions when compared to the Company's peers. This work includes enhancements to ASAC, the pilot project for ESAC, and our pipeline of next generation applications for our target markets. Salaries and benefits for the research and development team increased by 124% and represent 51% of total research and development expenditures (38% in 2020). The increase in wages is largely a result of the organization increasing capacity to support commissioning of the ASAC manufacturing plant including quality and assurance testing; and preparation to launch the ESAC project in 2022.

Research and development costs are tracked by project. As such, they are qualified under the Scientific Research and Experimental Development tax credit programs offered by the Government of Canada and the Alberta Government ("SR&ED") and administered by the Canada Revenue Agency ("CRA"). SR&ED is an investment tax credit ("ITC") applicable to companies that conduct research and development activities in Canada. As at December 31, 2021, AdvEn was a Canadian controlled private corporation ("CCPC") operating in Alberta, and as such, was eligible for refundable SR&ED ITCs of 55% on eligible expenses resulting in a tax refund of $1 million ($201,000 in 2020). SR&ED ITCs may be carried back three years or carried forward up to 20 years. The Company may also claim an additional 15% of non-refundable ITCs thereby reducing its future income tax burden.

AdvEn applied its refundable ITC as an offset to its research and development expenses. Total expenditures were $1.3 million ($755,000 in 2020). When the offset is applied, the net research and development expense was $243,000 ($554,000 in 2020) for a 56% decrease over 2020. A summary of the expenses related to research and development projects follows:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | Year ended December 31, | Year ended December 31, | Variance | Variance |
| (in '000s, except as noted) | 2021 | 2020 | Amount | Change |
| Salary and benefits | $650 | $290 | $360 | 128% |
| Shipping expenses | 172 | 2 | 170 | 8500% |
| Patent expense | 145 | 78 | 67 | 86% |
| Materials and supplies | 92 | 82 | 10 | 12% |
| Professional fees | 83 | 218 | (135) | (62)% |
| Facility operating costs | 78 | 62 | 16 | 26% |
| Repairs and maintenance | 22 | 9 | 13 | 144% |
| Travel and other costs | 18 |  | 18 |  |
| Utilities | 9 | 13 | (4) | (31)% |
| Total | 1271 | 755 | 51 | 68% |
| SR&ED ITC credit | (1028) | (201) | 827 | 411% |
| Research and development, net of SR&ED | 243 | 554 | 311 | 56% |

---

During the period, the Company also performed testing of refinery by products for two major oil companies to determine their suitability for our ASAC process. We plan to continue providing these services on an ad hoc, as needed, basis.

**Depreciation**

In 2019, AdvEn adopted IFRS 16: Leases as was required after January 1, 2019. The standard provides a single lessee accounting model requiring lessees to recognize all assets and liabilities resulting from its leases unless the term of lease is less than 12 months. Leases are recognized as a right of use asset and a corresponding liability when the leased asset is available for use by the Company. Assets are measured at cost and liabilities are measured on a present value basis upon initial recognition. Right of use assets are depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis (see notes 3i, 7 and 10 of the Notes to the Consolidated Financial Statements). During the period, the Company depreciated right of use assets associated with an office, research lab and the Plant by $179,000 ($74,000 in 2020). On March 28, 2022, the Company leased office space in Calgary, Alberta, Canada as its corporate headquarters for a six (6) year term recognizing a right of use asset and corresponding liability of $.

As at December 31, 2021, the Company held $5.6 million in property, plant and equipment assets ("PP&E") ($831,000 in 2020) primarily associated with the Plant construction. PP&E is initially measured at cost including the purchase price and any costs directly attributable to bringing the asset into working condition for its intended use ("Commissioning"). The cost of self-constructed assets includes the cost of materials, direct labor, and other costs associated with Commissioning. As at December 31, 2021, the majority of PP&E assets were not fully commissioned and therefore recognized at the purchase price plus commissioning costs applied to date and assets not yet in use (i.e. Commissioning was incomplete) were not depreciated. During the year ended December 31, 2021, AdvEn recognized $172,000 in depreciation expenses related to its PP&E ($$113,000 in 2020).

**Summary of Quarterly Results**

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| | | | | |
|:---|:---|:---|:---|:---|
| (in '000s, except as noted) | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 |
| Revenue | $Nil | $Nil | $Nil | $Nil |
| **Expenses:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Stock based compensation |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Bad debt expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Legal fees |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Consulting fees |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Research and development |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of use assets |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property, plant and equipment |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounting and audit fees |  |  |  |  |
| &nbsp;&nbsp;&nbsp;General, administration, sales and other expense |  |  |  |  |
| **Loss from operations** |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Finance expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Loss (gain) on foreign exchange |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Change in fair value |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Government grants and subsidies |  |  |  |  |
| **Total loss and comprehensive loss** |  |  |  |  |

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**OTHER OPERATING ACTIVITIES**

Finance expenses are primarily associated with the interest related to lease liabilities of $142,000 ($12,000 in 2020) and interest expense paid or accrued on shareholder loans and the Notes of $128,000 ($28,000 in 2020) (see Note 18 of the Notes to the Consolidated Financial Statements).

During the period ended December 31, 2021, the Company recognized losses of $81,000 from foreign exchange ($8,000 in 2020) due to its international purchase of equipment for the Plant.

**Government Grants and Subsidies**

On March 25, 2021, AdvEn entered into a project funding agreement with SDTC for up to $3.85 million for the development of the Plant. On March 29, 2021 SDTC increased its grant by $192,500 for COVID relief for an updated total of $4,042,500. SDTC is a not-for-profit foundation whose purpose is to foster the development and adoption of technologies that contribute to a sustainable development infrastructure in Canada and help private businesses rapidly develop and demonstrate pre-commercial technologies that address climate change, clean air, clean water and clean soil. The grant is broken down into four milestones and the agreement includes representations and warranties by the Company for performance. Year-to-date, there is a total of $1.4 million outstanding from this grant from the final two tranches:

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| | | | |
|:---|:---|:---|:---|
|  | **Target Achievements** | **Measure of Success** | **Amount** |
| SDTC Payment #3 | 20 kg samples produced from the Plant for internal testing and customer evaluation | Produced ASAC meets committed quality and quantity | $1055224 |
|  | Batch samples from the production plant sent to Letter of Intent end users for final validation | Final purchase orders signed by the end users |  |
|  | Receipt and acceptance by SDTC milestone report | Fully funded capital project |  |
|  | Evidence satisfactory to SDTC that sufficient financing is in place to complete the rest of the Project |  |  |
| SDTC Payment #4 | Streamline the production process to meet the quality and quantity of signed POs | Production report indicating produced volumes and QA/ QC testing | $385000 |
|  | Expand ASAC types to be produced from the plant, pursue additional end-user engagements and eventually gain their signed POs | New customer POs (as achieved) |  |
|  | Review and evaluate actual plant operating costs and identify opportunities to improve safety, quality, efficiency, reliability and sustainability | Plant operability report and recommended improvements |  |

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The contract between the Company and SDTC is not time bound and the Company is not obligated to repay the amounts advanced. However, the agreement includes termination provisions for an incomplete project which may result in a requirement to repay amounts advanced and the surrender of the ASAC technologies to the Government of Canada.

On April 1, 2021, we entered into an investment agreement with Alberta Innovates ("AI") for the development of the Plant. The investment agreement included an initial tranche of $2 million followed by milestone payments; with the total investment not to exceed $3.6 million. This agreement may be amended or extended by mutual consent. Year-to-date, there is $350,000 outstanding from this grant as follows:

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| | | | |
|:---|:---|:---|:---|
|  | **Target Achievements** | **Measure of Success** | **Amount** |
| AI Payment #4 | Facility construction and improvements complete | Office and facility move-in ready; employees recruited and trained<br>| $175000 |
|  | Pre-commissioning and Factory Acceptance Tests performed at the factory and onsite | Equipment tested and warranty repairs requested as necessary |  |
|  | Equipment is installed, connected and finally tested for operations | Production line properly installed and ready for production commissioning<br>|  |
|  | Plant is fully commissioned and operating smoothly | Production line 100% ready to commence operations |  |
| AI Payment #5 | Validation of product consistency including: passing QA/QC testing; ASAC sent to customers; lock in long-term POs/contracts<br>| Batch samples sent to customers and firm confirmation of longer-term POs | $175000 |
|  | Process optimization | Ensure product consistency; optimize ASAC output; establish high production line reliability |  |
|  | Deliver product in accordance with POs |  |  |

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As of December 31, 2021, the Company has received $3.6 million in payments (2020 nil). As this funding relates to a capital project that is under construction, and includes specific milestones, the amounts are recognized in profit and loss as the Company achieves its milestones or the underlying assets are put to use. AdvEn recognized $805,000 in grant and subsidy payments to profit and loss during the period ($12,000 in 2020).

This agreement is scheduled to terminate in 2023 and there are no repayment provisions upon completion. As of the date of this prospectus, 100% of the funds have been advanced under this agreement. Should the project not complete, the Company may be obligated to repay some or all of the amounts advanced.

**Liquidity**

Cash generated from (used in) our activities for the period ending December 31, 2021 summarized as follows:

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| | | |
|:---|:---|:---|
| As at December 31, (in '000s, except as noted) | 2021 | 2020 |
| Net cash provided by (used in): |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | $1123 | $(558) |
| &nbsp;&nbsp;&nbsp;Investing activities | (319) | (260) |
| &nbsp;&nbsp;&nbsp;Financing activities | 1907 | 779 |
|  | $2711 | $(38) |

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As at December 31, 2021, AdvEn had cash and cash equivalents of $2.7 million (2020 nil) respectively. The increase is largely attributed to the receipt of grants, financings and reduced by continuous investment in capital assets and the overhead costs associated with the delays in the Plant construction timeline. Current assets increased from $2.4 million at December 31, 2020 to $4.2 million in 2021 largely due to the increase in cash and the SR&ED tax credit receivable.

**Operating Activities**

Net cash used in operating activities decreased from $(558,000) in 2020 to a surplus cash from operations of $1.1 million in 2022. The variance is largely attributable to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· An increase in non-cash working capital resulting from an increase in accounts
payable from $340,000 to $1.83 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· A significant non-cash expense of $1.5 million in stock-based compensation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· An increase in non-cash depreciation expense

This was offset by:

&nbsp;&nbsp;&nbsp;&nbsp;· Increase
 in overhead spending to support the construction and implantation of the Plant

&nbsp;&nbsp;&nbsp;&nbsp;· Increase
 in staffing attributed to the Plant and supporting day-to-day operations

These factors were offset by:

&nbsp;&nbsp;&nbsp;&nbsp;· An
 increase in non-cash working capital resulting from deferred payment plans with several contractors

Non-cash working capital was comprised of:

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| | | |
|:---|:---|:---|
| As at December 31, (in '000s, except as noted) | 2021 | 2020 |
| Deferred government grants | $2877 | $Nil |
| Change in accounts payable | 1412 | 217 |
| Investment tax credit recoverable (net of the current year's claim) | (827) | (55) |
| Change in accounts receivable | (348) | (21) |
| Change in amounts due to shareholders | (87) | 42 |
| Due from related parties | 65 | Nil |
| Prepaid expenses | 29 | (77) |
|  | $3121 | $107 |

---

The $3.1 million in non-cash working capital adjustments as at December 31, 2021 was generated from $2.4 million in operating activities ($107,000 in 2020) and $765,000 in investing activities (2020 nil).

**Financing Activities**

During the period, AdvEn paid $144,000 in lease interest payments ($71,000 in 2020); received $2.2 million in cash payments from a share purchase completed in 2020 ($300,000 in 2020); and repaid $120,000 in related party promissory notes. Government grants were recognized in profit and loss and the deferred portion as an adjustment to working capital.

Proceeds from the Notes were recognized as an investing activity as they were assumed with the reverse merger between AdvEn Industries Inc. and AdvEn Inc.

**Investing Activities**

During the reporting period ending December 31, 2021, AdvEn invested in $4.8 million in property, plant and equipment ($260,000 in 2020) including $3.1 million in assets under construction for the Plant (2020 nil); $1.2 million in leasehold improvements for the Plant (2020 nil); $361,000 in production equipment ($246,000 in 2020) and $111,000 in lab equipment, computer systems and office equipment ($14,000 in 2020). The Company expensed $172,000 in depreciation for the period ($113,000 in 2020) for a total accumulated depreciation of $653,000 resulting in a carrying amount of property, plant and equipment of $5.0 million ($351,000 in 2020).

The majority of assets under construction include manufacturing equipment and components of the supporting infrastructure for the Company's ASAC manufacturing systems including carbonization and activation furnaces, chemical washing and centrifuge stations, demagnetization units, custom storage tanks and platforms, electrical systems and environmental monitoring and control systems.

**Share Exchange and Reverse Merger**

On December 25, 2021, AdvEn Industries Inc. and AdvEn Inc. (formerly Nano Innovations Inc.) concluded a strategic transaction in order to add management, advisors and directors with public company experience and relevant industry skills to the technical research team of AdvEn Industries Inc. The transaction also required a minimum amount of capitalization in order to advance Plant construction and provide future access to capital in support of the Company's growth plans.

The two companies undertook a share exchange whereby AII shareholders exchanged 100% of the Company's shares for 26 million shares in AI. Prior to the share exchange, AII undertook a consolidation of shares on a one to 0.6445 basis resulting in a total issued and outstanding shares in AII of 26 million. All reference to common shares and per share amounts have been retrospectively restated to effect the reverse split of shares as if the transaction had taken place as at January 1, 2020. As a result, the share exchange resulted in an exchange of shares on a one-to-one (1-1) basis. The total resulting shares issued in Nano was 32,750,000 of which 79% was owned by the original AdvEn Industries Inc. shareholders.

<br> At the time of the transaction, the Company compared the concentration of assets, less cash, between AII and AI as at December 24, 2021 to determine the economic acquirer. As the concentration of assets was primarily held within AII, and the primary asset held within AI was cash, AII was the economic acquirer. AdvEn Industries Inc. also had business processes and inputs that may contribute to the production of products or other economic outputs, thereby classifying AII as a business. Comparatively, AdvEn Inc. had no such processes or inputs and was therefore not a business under IFRS. As such, the share exchange was accounted for as a reverse merger of AdvEn Inc. by AdvEn Industries Inc and reported as an investing activity rather than as a business combination between peers. AdvEn Inc. is the surviving legal entity with AdvEn Industries Inc. as a wholly owned subsidiary company.

The Consolidated Financial Statements report the total capitalization of the combined entities retrospectively to reflect the share exchange and consolidation as at the beginning of the reporting period on January 1, 2020. Retrospective adjustments and restatements are not changes in equity but they are adjustments to the opening balance of retained earnings and carried forward through the reporting period.

Upon initial recognition on December 24, 2021, a summary of Nano's net assets follows:

---

| | |
|:---|:---|
| As at December 24, 2021 (in '000s, except as noted) | AdvEn Inc. |
| Cash and cash equivalents | $3730 |
| Other assets | 115 |
| **Total assets** | **3845** |
| Accounts payable | 2 |
| Current portion of Notes | 3063 |
| Convertible debenture derivatives | 128 |
| **Total liabilities** | **3193** |
| **Net assets** | $**652** |

---

For purposes of estimating the transaction value, the short-term notes have been presented at face value. However, the notes are a compound financial instrument containing a host liability, a derivative liability and equity. Upon initial recognition following the share exchange and assumption of the liability, the notes have been adjusted accordingly.

The reverse merger resulted in a cash contribution of $3.7 million to the reported investing activities of the Company, along with the resulting liabilities and equity.

**Notes**

Upon completion of the share exchange between AdvEn Industries Inc. and AdvEn Inc., the Company assumed $3,859,500 (USD$3 million) in the Notes with an accompanying warrant for the purchase of common shares in the Company within 10 years (the "Warrant" and together the "Bridge Financing").

The notes formed part of an offering of securities initiated between the Company and its financial advisors in order to provide bridge capital leading up to an initial public offering of Common Shares on the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange during the subsequent 12 months. The Notes mature on the earlier of December 21, 2022 or upon completion of a Liquidity Event, bear interest at 10% per annum payable through to maturity and increase to 15%, payable monthly in cash, until such time the Liquidity Event is consummated. The Note may be amended or extended with consent of 67% of the holders. The "most-favored-nations" clause contained therein ensures that all Note holders benefit pari-passu. Lastly, there is a default provision increasing the principal amount to 120% of the paid-in principle.

The Warrant may be issued to Note holders following the conversion of the Notes to common shares. Note holders have the right to purchase up to 50% of the number of common shares issued upon full conversion of the Note which includes the original principal amount plus any accrued interest. The purchase price of one common share under the Warrant equals the price of one common share issued in the Liquidity Event. In the event of default, or the maturity date extended, the Warrants increase to 75% of the number of common shares issued upon the full conversion of the Note. The Warrants also include anti-dilution provisions for Exercise Price should the Company issue equity or equity-like instruments at a lower price per share than the Exercise Price, excluding share incentives under the Company Stock Option Plan. The Warrants also contain a cash settlement provision based on the fair value of the Warrants in the even the Company sells more than 50% of its equity or assets. Warrants are not issued if the notes are not converted.

As at December 21, 2022, the Note maturity date for the initial tranche completed in December 2021 has lapsed. The Company has proposed the following amendments to the Note and has entered into negotiations with the five largest investees representing more than 69% of Note holders:

&nbsp;&nbsp;&nbsp;&nbsp;· Increase
 the term by 6-12 months

&nbsp;&nbsp;&nbsp;&nbsp;· Increase
 the interest rate to 18% simple interest per annum, to be accrued monthly

&nbsp;&nbsp;&nbsp;&nbsp;· Increase
 the Warrant from 75% warrant coverage to 100% warrant coverage under the same terms

**Contractual Obligations**

AdvEn leases the Plant and its head office in Calgary. The Plant lease is on a 10-year term and expires May 31, 2031 and the Calgary office is on a 6-year term and expires on February 28, 2029. The following table summarizes our contractual obligations, which are comprised entirely of operating lease obligations as at December 31, 2021, and the effect these obligations are expected to have on our liquidity and cash flows in future periods:

---

| | | |
|:---|:---|:---|
| As at December 31, 2021 (in '000s, except as noted) | December 31, 2021 | December 31, 2021 |
| 2022 |  | 44 |
| 2023 |  | 31 |
| 2024 |  | 124 |
| 2025 |  | 144 |
| 2026 and thereafter | | 1,466 |
|  | | 1,808 |

---

**Off-Balance Sheet Arrangements**

As at the issuance of this prospectus, we have not entered into any financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, we have not entered into any derivative contracts that are indexed to our own shares and classified as shareholders' equity, or that are not reflected in our consolidated financial statements. Furthermore, we do not have any retained or contingent interest in assets transferred to an unconsolidated entity that serves as credit, liquidity or market risk support to such entity. Moreover, we do not have any variable interest in any unconsolidated entity that we provide financing, liquidity, market risk or credit support to or engages in hedging or research and development services with us.

**Capital Needs**

The Company's capital needs include our daily working capital, capital to complete both the ASAC and ESAC projects and the Plant, and capital to finance the development of our business. With the uncertainty of the current market and the impact of the COVID-19 outbreak, our management believes it is necessary to accelerate its financing options to the extent possible and to be cautious on operational decisions and overhead costs. As of December 31, 2021, approximately $ million, or %, of our grant money was collected and the remaining milestones will result in an additional $1.8 million in non-dilutive financing and the ability to commence revenue generating activities. Our management believes that income generated from future operations can satisfy our daily working capital needs within six (6) months of completing plant commissioning and grant milestones.

We plan to raise additional capital through public offerings or private placements to finance our business development and to consummate any merger or acquisition, if necessary. See "*Risk Factors*" herein.

**Financial Instruments**

AdvEn recognizes a financial instrument as a financial asset or a financial liability when the Company becomes party to the contractual provisions of the instrument or on the origination date as applicable (i.e. accounts receivable). Financial assets and financial liabilities are initially measured at fair value except for financial assets and financial liabilities that are measured at fair value through profit and loss. Transaction costs attributed to a specific acquisition or the issuance of securities are added to the fair value of financial assets and deducted from the fair value of financial liabilities at initial recognition. Subsequent measurement of financial instruments is measured at amortized cost. The Company's financial instruments include: cash and cash equivalents; accounts receivable; due to (from) related parties; investment tax credits ("ITCs") recoverable; accounts payable; due from shareholders; related party promissory notes; Notes; lease liabilities; and stock-based compensation.

The Company derecognizes financial assets when the contractual rights or obligations have expired or transferred and when the risks and rewards of ownership of the financial asset have substantially transferred. Any interest in transferred financial assets created or retained as a result of the transfer is recognized as a separate asset or liability.

The Company derecognizes financial liabilities when its contractual obligations are discharged, cancelled or expire. During the year ended December 31, 2021, the Company recognized derivative financial liabilities through the initial recognition of its Notes and non-cash compensation. Derivative financial instruments are measured at fair value and the change in fair value recognized periodically through profit and loss.

**Determination of Fair Values**

Financial instruments measured at fair value require classification into one of the following levels of the fair value hierarchy:

&nbsp;&nbsp;&nbsp;&nbsp;· Level
 1: Valuations based on quoted prices in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;· Level
 2: Valuations based on observable inputs other than quoted active market prices; and

&nbsp;&nbsp;&nbsp;&nbsp;· Level
 3: Valuations based on significant inputs that are not derived from observable market data,
 such as discounted cash flow methods.

AdvEn applies the fair value hierarchy in its fair value measurements using Level 1 when available. If Level 1 is not available, fair value is based on Level 2 inputs of internally developed valuation techniques that use, where applicable, current market-based or independently sourced market parameters such as interest rates, currency exchange rates, option and stock volatilities. For certain financial assets and liabilities, the Company uses third-party information as source data and to confirm our valuation methods including indicative dealer quotes; quantitative input from investment advisors and third-party, industry recognized, research and government sources.

---

| | |
|:---|:---|
| Financial Instrument | &nbsp;&nbsp;Fair Value Hierarchy |
| Cash and cash equivalents | &nbsp;&nbsp;Level 1 |
| Accounts receivable | &nbsp;&nbsp;Level 1 |
| Due to (from) related parties | &nbsp;&nbsp;Level 1 |
| ITCs recoverable | &nbsp;&nbsp;Level 1 |
| Accounts payable | &nbsp;&nbsp;Level 1 |
| Due to (from) shareholders | &nbsp;&nbsp;Level 1 |
| Related party promissory notes | &nbsp;&nbsp;Level 1 |
| Notes | &nbsp;&nbsp;Level 2 |
| Lease liabilities | &nbsp;&nbsp;Level 2 |
| Stock-based compensation | &nbsp;&nbsp;Level 2 |

---

Notes are a compound financial instrument that contain a host liability, derivative liabilities and equity as distinct elements accounted for separately. The derivative liability results both from changes in changes in currency exchange rates from United States currency to our functional currency and from uncertainty in the conversion price. As the conversion price will be determined at the time of an initial public offering and with approval by the SEC the only reliably measurable derivative is the exchange rate.

**Transactions with Related Parties**

Related party transactions are in the normal course of operations and are recorded at the exchange amount.

**Due from related parties:**

The Company has the following amounts due from related parties:

---

| | | |
|:---|:---|:---|
|  | December 31, <br>(in '000s,) | December 31, <br>(in '000s,) |
| As at | 2021 | 2020 |
| Recoverable expense from companies controlled by AdvEn shareholders | $488 | $Nil |
| Demand note with entity controlled by a director | 65 | Nil |
| Total | $553 | $Nil |

---

AdvEn determined during audit procedures these amounts are likely uncollectible and created an allowance for bad debt expense. Subsequent to the reporting periods, no additional funds have been advanced to these entities.

Due to related parties:

As at December 31, 2021 the Company had a promissory note payable to the CEO in the amount of $480,000 and the CEO and a director in the amount of $600,000 as at December 31, 2020. These notes are subordinated to the Note holders and bear interest at 6% per annum.

**Operating Transactions**

During the year ended December 31, 2021, the Company entered into a service agreement for engineering and management services with an entity that is owned by the Company's Chief Executive Officer. Fees paid during the year for the service agreement totaled $325,000 (2020-$220,315). The contract was cancelled on February 28, 2022 and the Chief Executive Officer joined as a full-time employee.

The Company paid fees to University of Alberta for short term rental for lab and equipment. The Director of the lab is a key management personnel of the Company and a full professor at the University of Alberta. The rental fees paid to University of Alberta for the year ended December 31, 2021 total $24,578 (2020-$55,200).

**Technology Spinout**

Effective February 5, 2021, AdvEn issued two licensing agreements for the use of internally created technologies to two separate entities with common shareholders to AdvEn prior to the share exchange (see Note 5 of the Notes to the Consolidated Financial Statements). The licenses rely on a single patent that was not in use by the Company nor intended for commercial exploitation in its current business plan. The licenses provided the unfettered use of the patent for the development of carbon fiber technologies and solid bitumen technologies. The Company does not expect any further residual economic value from the patent. The net book value of the patent was $nil.

On May 30, 2022, AdvEn amended and restated the Technology Acquisition Agreement such that the underlying carbon fiber and solid bitumen technology would be sold to Tangold Inc. for consideration of $250,000 payable in shares of Tangold and AdvEn would retain any residual benefit outside of the carbon fiber and solid bitumen applications resulting from the use of its technology and any derivative technologies.

**Critical Accounting Estimates**

This MD&A of the Company's financial condition, results of operations and cash flows are based on the financial statements which are prepared in accordance with IFRS. The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the carrying amounts of assets, liabilities, revenues and expenses. Actual results may differ from these estimates and the differences could be material. Estimates, judgments and assumptions are reviewed on a continuous basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods. Key areas of estimation where management has made difficult, complex or subjective assumptions, often as a result of matters inherently uncertain are summarized below.

**Going concern**

Determining if the Company has the ability to continue as a going concern is dependent on its ability to achieve profitable operations. Certain judgments are made when determining if the Company will achieve profitable operations which is not applicable to these financial statements.

**Provision for income tax**

Deferred tax assets, including those arising from tax loss carry forwards, require management to assess the likelihood that the Company will generate sufficient taxable income in future periods to the utilize recognized deferred tax assets. Assumptions about the generation of future taxable profits depend on management's estimates of future cash flows. In addition, future changes in tax laws could limit the ability of the Company to obtain tax deductions in future periods. To the extent that future cash flows and taxable income differ significantly from estimates, the ability of the Company to realize the net deferred tax assets recorded at the reporting date could be impacted.

**Fair value of financial instruments**

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. Fair value is measured at a point in time and may change in subsequent periods.

Where possible, fair value is determined by reference to quoted prices in the most advantageous active market available to the Company. In the absence of an active market, fair value is determined on the basis of valuation models, including discounted cash flow models. These models require assumptions of the amount and timing of future cash flows, discount rates and market conditions at the measurement date. External observable market data are used for these assumptions when available. When such data is not available, the Company uses the best possible estimate.

**Fair value of assets and liabilities acquired in a business combination**

Acquired assets and assumed liabilities are recognized at fair value on the date the Company effectively obtains control. The measurement of each business combination is based on the information available on the acquisition dates. The estimate of fair value of the acquired intangible assets (including goodwill), property, plant and equipment, other assets, liabilities assumed and contingent consideration are based on assumptions. The measurement is largely based on projected cash flows, discount rates and market conditions at the date of acquisition.

**Allowance for doubtful accounts**

The Company applies an expected credit loss approach in determining allowances for doubtful accounts. The approach that the Company has taken for trade receivables is a provision matrix approach whereby lifetime expected credit losses are recognized based in aging characterization and credit worthiness of customers. Specific provisions may be used where there is information that a specific customer's expected credit losses has increased.

**Useful lives of property, plant and equipment** 

The Company estimates the useful lives of property, plant and equipment based on the period over which the items of property, plant and equipment are expected to be available for use. The estimated useful lives of property, plant and equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the relevant items of property, plant and equipment. In addition, the estimation of the useful lives of property, plant and equipment are based on internal evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of recorded depreciation expenses for any period would be affected by changes in these factors and circumstances.

**Impairment of non-current assets**

Property, plant and equipment assets are assessed for impairment at least annually and whenever there is an indication that the asset may be impaired. The Company determines the fair value less cost of disposal of its cash generating unit "CGU" groupings. Recoverable amounts are determined by comparing the higher of value in use and fair value less cost of disposal amounts.

The process of determining the value in use or the fair values less cost of disposal requires the Company to make estimates and assumptions of a long-term nature regarding discount rates, projected revenues, margins, as applicable, derived from past experience, actual operating results and budgets. These estimates and assumptions may change in the future due to uncertain competitive and economic market conditions or changes in business strategies. Recoverable amounts are determined by comparing the higher of value in use and fair value less cost of disposal amounts.

**Accrued liabilities**

Measurement of accrued liabilities involves the use of estimates to be made by management for determining the amount to be accrued and/or disclosed in the consolidated financial statements. These estimates are based on financial information available to management at the time of preparation of the consolidated financial statements.

**Compound financial instruments**

The Company has issued a variety of financial instruments that require judgement to determine whether the security should be classified as an equity instrument, a financial liability or a compound financial instrument with both equity and liability components. Key factors impacting the classification of these instruments include the existence of maturity dates, mandatory interest and principal payments, conversion and redemption rights, subordination to other equity instruments and the ability the settle the instrument in cash or equity.

**Revenue**

Revenue is recognized when performance obligations are identifiable and recorded when goods or services are delivered to customers. Transaction prices are derived from specific selling prices either at the time of delivery or when a contract is signed with the customer for future delivery of products or services. The Company determines revenue to be transferred at a point in time when the physical asset or services is immediately transferred or consumed by the end customer. Revenue is considered to be transferred over a period of time when a series of activities are performed over a longer period of time to deliver a service or good to the customer.

**Emerging Growth Company Status**

As an emerging growth company ("EGC") under the JOBS Act, we may delay the adoption of certain accounting standards until such time as those standards apply to private companies. Other exemptions and reduced reporting requirements under the JOBS Act for EGCs include presentation of only two years of audited financial statements in a registration statement for an initial public offering, an exemption from the requirement to provide an auditor's report on internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act, an exemption from any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation, and less extensive disclosure about our executive compensation arrangements.

In addition, the JOBS Act provides that an EGC can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an EGC to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.

We may remain classified as an EGC until the end of the fiscal year following the fifth anniversary of this offering, although if the market value of our Common Shares that is held by non-affiliates exceeds $700 million as of of any year before that time, or if we have annual gross revenues of $1.235 billion or more in any fiscal year, we would cease to be an EGC as of December 31 of the applicable year. We also would cease to be an EGC if we issue more than $1.0 billion of non-convertible debt over a three-year period.

**BUSINESS**

**Our Mission And Vision**

Our mission is to create value through the commercialization of carbon-centric advanced technologies utilizing industrial by-products; converting refinery residues into non-combustible materials for energy storage and a clean environment.

Our vision is to become the world's leading producer of carbon-based precursors for energy storage and clean environment applications with superior technical performance, market-compatible prices and sustainability, and maintain a nimble culture centered on innovation, inclusiveness, and unconditional positive regard.

**Background**

We are a pre-revenue emerging growth company located in Alberta, Canada. Through our wholly owned Alberta, Canada subsidiary, AdvEn Industries Inc. founded in 2011, we are commercializing ASAC and ESAC technologies derived from refinery residues and heavy asphaltenes – the non-volatile components of crude oil. We convert asphaltenes into non-combustible products thereby diverting them from traditional waste streams such as fuel oil manufacturing, coking for steel and other heavy greenhouse gas emitting uses. We are nearing completing construction of our 36,000 square foot ASAC manufacturing facility and ESAC pilot plant in Nisku, Alberta with initial estimated production of 400 metric tons per year expandable to 1,200 metric tons per annum.

ASAC which was patented in 2017 and was the subject of four years of pilot testing by our research and development team. Upon receiving non-dilutive, non-repayable, grants from the Canadian and Alberta governments, we proceeded to commence construction of its current commercial facility scheduled to be fully operational this year. It is primarily used as the largest raw material in super capacitor manufacturing, and in pharmaceutical manufacturing, industrial manufacturing, liquid and air purification, environmental protection, and food and beverage production.

ESAC, also discovered and patented in 2017, provides a new formulation for dry electrode technology and has been tested by our research and development team in a laboratory setting for the past five years. The ESAC pilot plant is intended to demonstrate the commercial viability for the electrode coating in super capacitors and lithium-ion battery manufacturing with estimated initial production of electrode films in 2023 of 15 meters per second. This type of material is commonly referred to as "dry electrode" technology by the super capacitor and battery industries as it is applied dry, rather than by way of a wet slurry, and offers simplified manufacturing, lower capital and energy costs, and enhanced performance attributes.

Located in Alberta, Canada, our manufacturing facility is in close proximity to several oil refineries where it sources refinery residues (its primary raw material). Additional chemical compounds used in the Company's proprietary manufacturing systems are sourced locally, within North America and Internationally depending on price, availability and delivery times.

We will produce ASAC that is within customer specifications for the intended purpose of the final product. We will initially sell ASAC to customers who are primary manufacturers or OEMs producing sub-components for our target industry applications; to customers located in the PRC and within North America. The Company has identified customers and markets within Europe which it plans to pursue in 2023.

AdvEn is pre-revenue, however it received grant commitments totalling $7.64 million from SDTC and Alberta Innovates in the amounts of $4.04 million and $3.6 million respectively. SDTC is a not-for-profit foundation for the purpose of fostering the development and adoption of technologies that contribute to the sustainable development technology infrastructure in Canada and by contributing to the rapid development, demonstration and pre-commercialization of technological solutions that address climate change, clean air, clean water and clean soil. AI seeks to solve some of Alberta's largest industry challenges by supporting research, business growth and by assisting start-up companies to build new technology and drive new ideas. AI has launched its Alberta Carbon Conversion Technology Centre for the purposes of evaluating new carbon capture and utilization technologies at a demonstration scale. The two grants are intended to partially finance the Company's capital expenditures at its Nisku plant with additional funds provided through other grants, income tax credits and private investors.

The Company is currently engaged in multiple research and development projects to deliver high-performance technology for converting hydrocarbon resources to non-combustion product applications with superior performance attributes, lower-cost and reduced environmental impact to other asphaltene uses and to other companies producing activated carbon from organic sources such as wood, coconut husks, etc. These projects are qualified under the Scientific Research and Experimental Development Tax Incentive ("SR&ED") program administered by the Government of Canada. SR&ED credits are available to Canadian controlled private corporations and provide from 15-35% refundable tax credits on eligible expenses. The program applies to basic research, applied research or experimental development used to gain new knowledge or undertake a systematic understanding in a field of technology. In 2021, the Company was eligible for $1,027,544 ($200,851 in 2020) in SR&ED credits which it applied as an offset to its R&D expenditures. Similarly, the Company received additional subsidies totalling $98,184 in 2021. AdvEn estimates its 2022 SR&ED ITC will be approximately $1.2 million.

The Company has also been engaged in providing technical services to customers within Canada providing analysis and feasibility of various uses for refinery residues and the viability of these waste streams for activated carbon production using AdvEn proprietary technologies. The Company considers such contracts as an extension of its own internal R&D and has therefore accounted for them as an offset to its direct R&D expenditures. We expect to continue to provide similar technical services to our customers if requested. In 2021, the Company received $187,000 in contract R&D services and $51,000 in 2022.

**Our Corporate History**

AdvEn Industries Inc. was incorporated under the ABCA on October 1, 2011.

In 2015, AdvEn completed a proof of concept for its ASAC technology and launched a pilot project in 2016. Samples of ASAC were sent to several engineering and technology companies for validation resulting expressions of interest from Bolloré Group, Maxwell Technologies and Supreme Power Solutions Co., Ltd.

In 2016, AdvEn completed its proof of concept for ESAC and began planning for its patent submission.

On May 29, 2017, the Company filed patents for *Activated Carbons with High Surface Areas and Methods of Making Same* in the United States, Canada, China, multiple jurisdictions within Europe, UAE, Bahrain, Qatar, Oman, Saudi Arabia, Kuwait, India, Mexico, Japan and Korea.

On October 11, 2017, AdvEn filed patents for *Conductive-Flake Strengthened, Polymer Stabilized Electrode Composition and Method of Preparing* in the United States, Canada, China, multiple jurisdictions within Europe, India, Japan, Korea, and under the Patent Cooperation Treaty ("PCT").

In 2018, the Company completed pilot trials using multiple sources of asphaltene feedstocks (refinery by-products), plastic waste and biochar as raw materials.

In 2019, AdvEn initiated and successfully completed pilot trials using 100% LC Fining residues, the residual residues that are deemed insoluble after the LC Fining process used by most oil refineries.

In 2020, AdvEn began design and optimization for a commercial scale ASAC manufacturing facility and began exploring financing sources. The Company also successfully completed laboratory fabrication of ESAC film with a lab tested tensile strength of 2.5 MPa and assembled its first electrodes (cathodes and anodes) for use in super capacitors and lithium ion batteries.

In February 2021, AdvEn secured $2.00 million in funding from a private investor reaching a total of $6.02 million in paid in capital from management and private investors used to finance the research, development, patents and pilot projects to date.

On March 25, 2021, AdvEn entered into an agreement with SDTC for up to $3.85 million in federal government grants for the ASAC capital project. The grant was updated on March 29, 2021 with an increase of $193,000 for COVID relief for an updated total grant of $4.04 million.

On March 30, 2021, the Company entered into a lease agreement for a 10-year lease of its 36,000 sq. ft. premises at Unit 300, 3615 – 11<sup>th</sup> Street, Nisku, AB as the future premises for the ASAC manufacturing facility, ESAC pilot plant and clean room, research and development facilities, and operations offices (the "Plant").

On April 1, 2021, the Company entered into an Investment Agreement with Alberta Innovates for up to $3.6 million in grant funding and subsequently broke ground on the Plant.

On December 25, 2021, AdvEn Industries undertook a share exchange with AdvEn Inc. (formerly Nano Innovations Inc. or "Nano"), a company incorporated under the Business Corporations Act, British Columbia, Canada, whereby 100% of the then issued shares in AdvEn Industries were exchanged for shares in Nano on a share-for-share (1-1) basis. Nano had previously completed a $3,859,500 (USD$3,000,000) bridge financing which was used for the Plant capital project and general corporate purposes. The transaction has been accounted for as a reverse merger (see note 5 of the accompanying Financial Statements) although AdvEn was the surviving legal entity. AdvEn Industries was the acquiring entity for accounting purposes. The transaction is accounted for using the purchase method of accounting, the transaction was a recapitalization of AdvEn Industry's capital structure. This resulted in Nano being the legal acquirer of AdvEn Industries.

In 2022, the Company secured an additional $3.29 million under the bridge note structure which was used for the Plant capital project, working capital and general corporate purposes.

On April 26, 2022, AdvEn filed for a trademark in Canada and the United States for the word mark AdvEn in standard characters without claim to any particular font style, size or color.

Nano subsequently undertook a name change on July 27, 2022 to AdvEn Inc. following commuting the company from the jurisdiction of British Columbia to Alberta, Canada, and adopted new bylaws that materially conform to both the Alberta Corporations act and Nasdaq governance requirements for quorum.

**Our Corporate Structure**

The chart below illustrates our corporate structure as of the date of this prospectus:

![](cm281_f1img04.jpg)

**Our Solutions**

Our technologies have been developed to address multiple needs in the marketplace:

&nbsp;&nbsp;&nbsp;&nbsp;· In
 response to the electrical energy market's needs for increased storage capacity, faster
 charge and discharge times, and increased cycle times for extended battery and super capacitor
 life;

&nbsp;&nbsp;&nbsp;&nbsp;· As
 a non-combustible use for North American oil refinery by-products that are currently used
 in gasification, heating oil, and other high greenhouse gas emitting uses; and

&nbsp;&nbsp;&nbsp;&nbsp;· To
 provide an activated carbon with higher particle surface areas for industrial and pharmaceutical
 uses in air and liquid filtration.

To address these needs, AdvEn has proprietary technologies in various stages of development:

![](cm281_f1img05.jpg)

***Advanced Super Activated Carbon***

 

Our ASAC provides the foundation for all of its technologies. With patents approved or pending in multiple global jurisdictions, the Company is construction of a 36,000 sq. ft. manufacturing facility designed to initially produce up to 400 metric tons per year; with a design capacity of up to 1,200 tons per year.

Samples of ASAC produced at the Company's pilot facility in Edmonton, Alberta, demonstrated about 30% increased micro-pore volume. It is this increased micro pore volume that allows for greater energy storage and faster charge and discharge cycles as the energy can be transferred more efficiently within the carbon. The increased micro pore volume and resulting high surface areas make ASAC a desirable medium for specialized pharmaceutical and industrial filtration applications that require a rapid filtration media and greater reduction of contaminants. The Company employs a hybrid manufacturing approach that uses both physical (heat) and chemical (very dilute acids) activation in order to optimize production quality and minimize cost and environmental impact.

By using refinery by-products and our proprietary manufacturing methods in pilot tests over the past four years, our research team determined, the process indicated significant cost reductions as we operate at lower temperatures than coconut shell operations and eliminate the need for high concentrations of toxic chemicals.

![](cm281_f1img06.jpg)

AdvEn has a strong commitment to sustainability and in pilot tests conducted for the past 4-5 years, our ASAC, results in an approximately 65% reduction in greenhouse gas emissions when compared to alternative activated carbon technologies that require the combustion of coconut husks or other fibrous materials. ASAC manufacturing has also been tested using sources of biofuel and bio-oil residues with success should future supply of refinery by-products deplete.

***Electrode Super Adhesive Coating***

In the third quarter of 2022, we began the development of its ESAC pilot project in a contiguous space to its ASAC manufacturing facility. Electrode coating manufacture requires a specially fabricated clean room and specialized equipment capable of mixing, processing, drying, cutting and rolling electrodes. Once completed, the pilot project will produce approximately 15 meters per second of electrode film; sufficient quantities for customer acceptance testing and small-scale specialized applications. Our proprietary ESAC dry electrode process eliminates the need for drying equipment which reduces the capital expenditure, reduces manufacturing space required by as much as 90% and by reducing operating costs for the energy required to run multiple precision dryers used in slurry manufacturing.

In laboratory tests, ESAC also outperforms both slurry coatings and other dry electrode coating systems by producing film that withstands expansion and contraction with higher durability and tensile strength; and by increasing both the cycle time and number of active cycles through increased active material loading. This translates to a finished product with longer useful life, superior conductive qualities and that can be used under vigorous physical conditions including vibration and temperature fluctuations.

***Research and Development***

 

AdvEn plans to lead the market with a technology forward approach requiring significant investments in research, development, engineering, quality assurance and operations. What will differentiate our products in the market will be our commitment to sustainability in all of our product development with corresponding reductions in energy costs and greenhouse gas emissions, meeting the precise specifications required by customers through rigorous testing, and that all of our products are backed by a well-controlled take-to-market process that supports the Company's image and leading technology approach.

**The Market**

**Throughout this section, AdvEn references a report entitled Alberta Innovates: Activated Carbon Info authored by Ecoro BV of the Netherlands dated November 2021; and other sources of information that will be footnoted if appropriate and not readily available through the media.** 

<sup>1</sup> Activated carbon (also known as activated charcoal) is an exceptionally versatile material that can control the vast majority of molecules that pollute the air – that's more than 150 million catalogued chemicals. nowadays, activated carbon is used in a range of filters to remove a host of chemicals including volatile organic compounds (vocs). Camfil. (n.d.). Retrieved February 26, 2023, from *https://www.camfil.com/en/insights/innovation-technology-and-research/journey-of-activated-carbon#:~:text=The%20first%20recorded%20use%20of,using%20it%20to%20purify%20water.*

The global activated carbon market currently has an annual demand of over 1.7 million metric tons and annual sales of $4.5 billion USD in 2020<sup>2</sup>. Research by Ecoro BV conducted in 2021 for Alberta Innovates indicates the high-end activated carbon market is concentrated where suppliers are relatively limited in numbers. For example, Kuraray in Japan supplies to 85% of super-capacitator-grade activated carbon globally. Research CMFE cites a global shortage of clean water and air, along with a push for substantial environmental clean-up, and expects a 12.2% CAGR and reaching USD$10.1 billion by 2027<sup>3</sup>. Supercapacitor sales, which contain approximately 50% super activated carbon, are expected to grow from USD$3.3 billion in 2019 to a staggering USD$17 billion by 2027 resulting in a 23.3% CAGR<sup>4</sup>. Overall, we estimate a global shortfall of our ASAC grade material of approximately 20-30,000 metric tons per year in the next few years.

Our ESAC technology applies to the manufacture of electrodes for energy storage system devices including super-capacitator and all battery types such as currently popular Lithium-ion batteries, Sodium-ion and Solid State (SSBs) batteries, etc. For example, as shown to the right, electrode cost takes up almost half of the whole super-capacitator.

![](cm281_f1img09.jpg)

Market opportunities for the energy storage system sector are more significant and rapidly growing. While approximately 50% of the material in a SC is super activated carbon, nearly 50% of the cost of production is the electrode itself. Assuming the market growth also represents the cost of raw materials, the need for new, lower cost, and higher performing electrode material has never been greater.

Grand View Research estimates the global market for lithium ion batteries was approximately USD$42 billion in 2021 growing at a CAGR of 18.1% through to 2030 for an estimated market size of USD$183 billion<sup>5</sup>. Demand for lithium ion batteries and hybrid batteries has been largely attributed to the automobile sector's commitment to converting their fleets to predominantly electric vehicles over the coming years<sup>6</sup>.

<sup>2</sup> ECORO BV, 2021, Alberta Innovates-Activated Carbon Market Info, 38 p., Nov, 2021. The author, Jos Roosen, will join AdvEn Inc. as its Chief Commercial Officer (CCO), starting in early 2023.

<sup>3</sup> ResearchCMFE. (2021, December 16). Global activated carbon market is expected to reach USD 10.1 billion by the end of 2027 - researchcmfe. GlobeNewswire News Room. Retrieved February 24, 2023, from https://www.globenewswire.com/news-release/2021/12/16/2353999/0/en/Global-Activated-Carbon-Market-is-expected-to-reach-USD-10-1-Billion-by-the-end-of-2027-ResearchCMFE.html#:~:text=Pleasanton%2C

<sup>4</sup> Supercapacitor market size, share: Future Analysis and trends by 2027. Allied Market Research. (n.d.). Retrieved February 24, 2023, from *https://www.alliedmarketresearch.com/supercapacitor-market*.

<sup>5</sup> Lithium-Ion Battery Market Size & Share Report, 2030. Lithium-ion Battery Market Size & Share Report, 2030. (n.d.). Retrieved February 24, 2023, from https://www.grandviewresearch.com/industry-analysis/lithium-ion-battery-market.

<sup>6</sup> Beyond Market Insights. (2022, October 31). EV electric vehicle market size to reach US$1108 bn by 2030 with a 22.5% CAGR, EV industry analysis, size, share, growth, research, trends and forecast 2022 to 2030. GlobeNewswire News Room. Retrieved February 24, 2023, from https://www.globenewswire.com/news-release/2022/10/31/2544933/0/en/EV-Electric-Vehicle-Market-Size-to-reach-US-1108-Bn-by-2030-with-a-22-5-CAGR-EV-Industry-Analysis-Size-Share-Growth-Research-Trends-and-Forecast-2022-to-2030.html

**2.1** **Target Market / Customer Profile** 

The near-term target customer for ASAC is the AC customer demanding exceptional electron capture and release, low contamination or residual solids and a competitive price. We are initially focused on SC materials for energy storage system and industrial, medical and consumer filtration in catalyst, pharmaceutical, water, gas/air, and food/ beverage, etc. Customers are distributed all around the world and include major conglomerates as well as independents such as BASF SE, Covestro AG, Evonik Industries AG, Johnson Matthey PLC, Wanhua Chemical Group Company and others. Companies that consume catalyst AC for pharmaceutical uses include: Univar Solutions Inc., Teva Pharmaceutical Industries Ltd., Pfizer Inc., Bayer AG, Merck KGaA, and others.

We believe that the recent changes in the world situation, and increased demands for clean air, water and land by investors, governments and investors, favour our marketing and sales prospects. Some specific examples follow<sup>7</sup>:

&nbsp;&nbsp;&nbsp;&nbsp;1. Activated carbon is a "widely traded" commodity with significant market fluctuations. This
is indicative of a low-cost producer strategy which also means a small investment in research, development and capital expenditures. We
believe our niche approach based on advanced technologies serving the energy storage system market will allow us to sell at higher margins,
not be subjected to commodity pressure, and expansion opportunities commensurate with industry growth.

&nbsp;&nbsp;&nbsp;&nbsp;2. In 2019, the U.S. was the second largest consumer for activated carbons, behind China. Consumption in
the U.S. was approximately 270,000 metric tons and its production was 242,000 metric tons. We believe that our proximity to the U.S.,
the net importer status, the early adoption of advanced technology, and the generally positive trade relations between Canada and the
U.S., make the U.S. a significant market for AdvEn.

&nbsp;&nbsp;&nbsp;&nbsp;3. China supplies most of the AC in the world representing a 35% market share in 2019. The pandemic, supply
chain issues and trade relations with the U.S. have reduced capital investment in activated carbon within China which we believe indicates
a lag in technology adoption. China has also been the subject of several actions, and reviews, resulting from anti-dumping rules imposed
by US in the Tariff Act of 1930.

&nbsp;&nbsp;&nbsp;&nbsp;4. India was the second largest activated carbon producing country in the world at 309,000 metric tons and
the third largest consumer behind the U.S. and China. However, India commenced domestic production of super capacitors in 2022<sup>8</sup>
and is lagging behind the U.S. who began using super capacitors for military use in 1982<sup>9</sup>. Based on other anecdotal information,
we believe India is also lagging in the development of advanced activated carbon technologies.

&nbsp;&nbsp;&nbsp;&nbsp;5. We believe that ever increasing global pressure to reduce greenhouse gas emissions, particularly in the
developed countries where our customers reside, gives low emission and sustainable technologies a significant advantage.

<sup>7</sup> IndexBox. (2020, August 24). *Previously driven by the growth of the chemical industry and construction, the global activated carbon market to struggle with the pandemic*. Global Trade Magazine. Retrieved February 26, 2023, from *https://www.globaltrademag.com/previously-driven-by-the-growth-of-the-chemical-industry-and-construction-the-global-activated-carbon-market-to-struggle-with-the-pandemic/#:~:text=China%20(801K%20tonnes)%20remains%20the,for%2035%25%20of%20total%20volume.*

<sup>8</sup> *India's first home-produced supercapacitor hits the market*. Best Magazine. (2023, January 31). Retrieved February 26, 2023, from *https://www.bestmag.co.uk/indias-first-home-produced-supercapacitor-hits-the-market/*

<sup>9</sup> Namisnyk, A. M. (2003). *A Survey of Electrochemical Supercapacitor Technology* (thesis).

We signed 3 non-binding letters of intent ("LOIs") in 2020 in support of further testing of our ASAC once the Plant has been commissioned. Located in Ontario, Canada, one LOI end user manufactures filters for agricultural uses agreed to purchase from 100 to 150 metric tons of ASAC upon completion of testing material produced at scale in our Plant. Its environment has a high humidity where our ASAC product works uniquely well. A second LOI user is in China, a state-owned enterprise manufacturing super-capacitator and lithium ion batteries for energy storage systems committed up to 120 metric tons per year following successful sample testing. They tested our ASAC samples during the pilot phase for the manufacture of super-capacitator and intend to purchase after our product consistency is proven. They also expressed interest in acting as the sole distributor for our ASAC in the Greater China region. The last LOI user is also in China, a biochemistry technology and commercialization company licensing its patented technologies worldwide. They tested ASAC samples in ultra-pure filtration and wanted to continue testing our products from the ASAC plant with commitments to future orders of from 500 to 2,000 metric tons based on available supply. The potential commitments from these three customers will exceed our phase 3 production target of 1,200 metric tons. All three of these LOIs were confirmed and/or updated in 2023 in support of our government grants.

Our ASAC plant has been partially funded by Alberta government via Alberta Innovates ("AI") and SDTC". A consortium was initially formed for the funding program where 3 consortium partners made their in-kind contributions to help commercialize ASAC. One partner is the Ontario based agricultural filtration company and the issuer of one of the LOI's. Another partner is Univ. of British Columbia studying use of ASAC in new generations of batteries. The last partner is an oil/gas operator in Alberta, aiming to use ASAC for hydrogen transportation. Consortiums of this kind are critical to gaining government grant support, however 100% of the output is the property of AdvEn.

Direct markets and customers for the electrodes produced by ESAC are the downstream SC and battery manufacturers, such as consumer electronics, energy and utilities, industrial automotive/transportation and other end users. Potential customers include: Toyota Motor Corporation and its subsidiaries, Maxwell Technologies Korea Co., Ltd., Panasonic Holdings Corporation and its subsidiaries, Samsung Group, Skeleton Technologies GmbH, Tesla, Inc., LG Chem, Ltd., and others. All major automobile manufacturers are also big potential customers and technology developers. To date, we do not have any such customers or other relationships in this area, but we plan to compete in these markets in the future.

Between super-capacitator, batteries and hybrid batteries, super-capacitator will be our first target market because the downstream processing after the super-capacitator electrodes is less demanding and less capital-intensive. Unlike batteries, super-capacitators do not use metal elements but use super-capacitator-grade activated carbon that will be produced in our commercial ASAC plant. Thus, ESAC and ASAC combined in AdvEn commands the major components of the supply chain and doubles our advantage to deliver performance, cost and greenhouse gas reductions. We are unique globally, and uniquely Canadian. Fig. 5 illustrates the super-capacitator-grade activated carbon suppliers, customers and the SCM position AdvEn can occupy. Kuraray Co., Ltd. in Japan supplies approximately 85% of the super-capacitator-grade activated carbon needs. Most competitors use coconut shell feedstock, produce higher greenhouse gas emissions and have additional manufacturing steps needed to remove impurities.

![](cm281_f1img10.jpg)

***Figure 5: Key suppliers and customers in the value chain for SCs***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** **Competition and Positioning** 

We plan to redefine a large, established, and stagnant industry with technical superiority and significant improvement in sustainability focused on the innovative companies emerging to serve the next generation of power storage and utility. Initially, for ASAC, we will compete in the high-end activated carbon market. Our competitive advantages include our advanced technology, nimble team and technical flexibility (i.e. We are not constrained by technologies in use since 1965). We seek to confidently sell our products into the existing market, and then, partner with other innovators to expand our market across the globe.

We will position ourselves in the market through the following impact statements:

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| | |
|:---|:---|
| (1). | Both ASAC and ESAC represent transformational innovations in their respective traditional industries where markets are established, rapidly expanding and ripe for technological breakthroughs by niche participants. We seek to simultaneously overcome the three common pain points that limit the existing status quo, i.e., performance, cost and environmental sustainability. |

---

(2). We provide a material platform converted from carbon-rich industrial wastes or by-products to high-performance carbon materials, thus diverting their uses from being combusted to being sequestered in value-added solids that supply the clean environment and energy storage sectors.

<br> (3). We intend to expand our offering to include "re-activation" further diverting the material we produce from landfill sites around the world.

Therefore, we seek to create value via multiple mechanisms:

(1). Application level via higher performance and lower cost for greater and faster adoption of end-use applications.

(2). Incubation effect by supplying the downstream manufacturers, technology innovators and supply/value chain users with an excellent carbon-based feedstock material. ASAC provides the activated carbons. ESAC provides the electrodes.

---

| | |
|:---|:---|
| (3). | Environmental benefits by lowering activated carbon, or energy storage system, greenhouse gas footprint when ASAC or ESAC is used and/or our process adopted. We convert hydrocarbon residues and improve environmental, social, and governance reporting profiles for both our suppliers and our customers, creating value at all levels. |

---

**Industry Competitors**

Materials used in the production of supercapacitor grade super activated carbon are predominantly coconut shells of which Kuraray Co., Ltd. produces an estimated 85 percent; followed by Power Carbon Technology Co., Ltd., Fujian Yuanli Active Carbon Co., Ltd. (65,000 metric tons), Haycarb PLC (55,000 metric tons), EnerG2 (a division of BASF), and Jacobi (a division of Osaka Gas Chemicals Co., Ltd.) sharing approximately 15%.

**Our Customers**

AdvEn has three signed letters of intent representing up to 2,270 metric tons of production pending customer review of batch samples for customer acceptance testing based on their unique specifications. The Company expects initial purchase orders of up to 720 metric tons and plans to accelerate is production from 400 to 800 to 1,200 metric tons in phases with proceeds from this public offering.

Letters of intent have been received from two potential Chinese customers and one in Canada. There is significant risk in our dealings with companies in China. Please see "*Risk Factors Related to Doing Business in Canada specifically Uncertainties regarding the business and trade relations between Canada, the United States and the PRC may restrict or limit the Company's ability to sell products to certain large potential customers located in the PRC."*

In order to mitigate risks associated with international trade, the Company plans to utilize the services of Export Development Canada ("EDC") in order to avail itself of export insurance and working capital financing for purchase orders and accounts receivable related to international trade. <sup>6</sup> EDC is a Canadian crown corporation comprised of international risk experts with financing tools specifically deemed to assist Canadian corporations export goods and services internationally.

We expect to sell our products directly to customers due to the niche specialty market entry strategy. We are also pursuing two customer letters of intent in Europe and one in the United States which are in late stages of negotiation.

**Suppliers**

AdvEn has purchased equipment, tools and materials for the Plant in Canada, the United States and internationally. No preference has been given to any one supplier and purchasing has been based on safety, quality, price, and compliance to electrical equipment safety regulations in the County of Leduc, Alberta and Canada. Several pieces of equipment have been modified to meet our specifications, however where modifications have been made and despite the noted purchasing criteria, the Company has restricted its purchases to those specific suppliers in order to protect its proprietary processes.

AdvEn sources its raw materials directly and through supply depots representing several refineries located in Alberta and Saskatchewan. Refinery by-product ("asphaltenes") selection is based on the unique qualities of samples tested in the Company's laboratory facilities which include the ratio of asphaltenes to ASAC potential, solids and ash content, and other impurities. It also receives its chemicals from several suppliers in Canada and internationally. No one supplier provides more than a single raw material to further protect the underlying processes unique to our production processes.

Please see "*Risk Factors Related to Doing Business in Canada Uncertainties regarding the business and trade relations between Canada, the United States and the PRC may restrict or limit the Company's ability to sell products to certain large potential customers located in the PRC."*

**Our Employees**

As of the date of this prospectus, we had approximately seventeen (17) full-time employees and three (3) contractors. We believe we maintain good relationships with our employees. The table below sets forth the breakdown of our employees by function:

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| | |
|:---|:---|
| **Function** | **Number of<br> Employees** |
| Management | 3 |
| Finance and Administration | 3 |
| Information Technology | 1 |
| Operations and Engineering | 7 |
| Research and Development | 3 |
| Total | **17** |

---

*<sup>6</sup>* *https://www.edc.ca/* 

Our management considers our employees as key assets which play a pivotal role in our growth. It is our policy to maximize the potential of our employees through training and development. We provide on-the-job training to our employees covering various aspects of the marketing solution industry to keep abreast of the latest industry development. Our employee training and development aim at equipping our employees with the knowledge and skills necessary to perform their job functions and enhance their capability.

We strive to maintain a good working relationship with our employees. As of the date of this prospectus, none of our employees were members of any labor union, nor were there any labor dispute involving or against us.

**Properties**

AdvEn has a 36,000 sq. ft. leased light industrial facility for our Nisku plant and an office in Calgary as follows:

---

| | |
|:---|:---|
| **AdvEn Inc.** | **AdvEn Industries Inc.** |
| (Head Office) | (Manufacturing and Research) |
| 140 – 4<sup>th</sup> Avenue S.W. | Unit 300-3615 11th Street |
| Calgary, Alberta T2P 3N3 | Nisku, Alberta, T9E 1C6 |
| Canada | Canada |

---

AdvEn entered into its Calgary lease on March 28, 2022 to commence on March 1, 2023 for 6,326 sq. ft. in downtown Calgary for a period of six years. From the date of material completion of tenant improvements through to the commencement date, the Company is not responsible for rent or additional occupancy costs. Upon commencement, rent will be $19 per sq. ft. with occupancy costs estimated at $19.42 per sq. ft. The Company made a security deposit of approximately $128,000 of which $21,000 will be applied to March, April and May 2023 rents. Once fully applied rent and occupancy costs are estimated at $20,253 per month. This lease has one extension term for five years.

On March 30, 2021, AdvEn entered into a lease for 36,800 sq. ft. industrial property in Nisku, Alberta, for a period of 10-years. The lease also includes a fenced 5,000 sq. ft. yard area at an additional cost. Lease payments for the industrial property are fixed at $10.07 per sq. ft. through to May 30, 2026 and $10.82 per sq. ft. thereafter; for total payable of approximately $31,000 and $33,000 per month respectively. The yard is leased at $1.10 per sq. ft. increasing to $1.20 on June 2, 2026. This lease has no extension term.

**Environmental Regulations**

Our operations are subject to local, state, and federal laws and regulations governing environmental quality and pollution control. To date, our compliance with these regulations has had no material effect on our operations, capital, earnings, or competitive position, and the cost of such compliance has not been material. We are unable to assess or predict at this time what effect additional regulations or legislation could have on our activities.

**Intellectual Property**

Our core intellectual property currently includes: (i) three fully owned patents, (ii) derivative technologies and trade secrets related to the patents; and (iii) one trademark application for the Wordmark "AdvEn" in Canada and the U.S. filed on June 10, 2022.

On May 29, 2017, AdvEn filed for international utility patents for Activated Carbons with High Surface Areas and Methods of Making Same; the patent underlying our ASAC product. The patent describes how activated carbons with high surface areas can be produced through the synergistic activation at high temperatures using a predetermined combination of chemical activation agents. While most activated carbons are manufactured using either a high temperature system or a chemical activation agent, ASAC is manufactured using a hybrid of both methods. This patent has been granted in the United States, Europe, Saudi Arabia, India, Japan and Korea. The Company retains all trade secrets associated with this patent. This patent group expires 20 years from the date of filing on (May 28, 2037).

On October 11, 2017, we filed for international utility patents for Conductive-Flake Strengthened, Polymer Stabilized Electrode Composition and Method of Preparing; the patent underlying our ESAC dry electrode pilot project. The patent describes the fabrication of an electrode film with a high tensile strength and low electrical resistance using conductive flakes to strengthen polymer stabilized particle electrodes. While most electrode films are manufactured using an expensive and energy intensive wet slurry method and are limited to a single pass through the coating equipment, ESAC uses a dry method of coating which reduces the capital expense, the physical footprint of manufacturing facilities, and energy consumption. This patent has been granted in the United States, China, Japan and Korea. This patent group expires 20 years from the date of filing on (October 10, 2037).

We are a member of the IAC, an independent, membership based not-for-profit selected by the Canadian Government's Department of Innovation, Science and Economic Development ("ISED") to assist Canadian small and medium-sized enterprises in the data driven cleantech sector with their intellectual property needs. IAC provides Canadian businesses with intellectual property education and funding for trademark prosecution, patent filing, drafting, intellectual property consultation with law firms, software tools required to monitor existing intellectual property, and various other intellectual property related expenses. IAC also provides intellectual property insurance which covers up to $500,000 for the enforcement of our intellectual property and up to $1 million to defend our patents and trademarks.

Our published patents include the following:

*ASAC Patent Family*

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| | | | | |
|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Country/ Region** | **Application No.** | **Filing Date** | **Status** | **Patent No. and Issue<br> date if applicable** |
| US | 16/305/587 | 05/29/17 | Granted | 11,124,418<br> September 21, 2021 |
| Canada | 3023365 | 05/29/17 | Pending awaiting examination |  |
| China | 201780033084.0 | 05/29/17 | Pending, under examination |  |
| Europe (validated in Czech Republic, Estonia, Finland, France, Germany, Italy, Norway, Poland, Slovakia, Spain, Sweden, The Netherlands, Turkey, United Kingdom, Denmark,<br> Hungary and Romania) | EP 178054316 | 05/29/17 | Granted and validated | 3445712<br> July 2022 |
| UAE | P6001587/2018 | 05/29/17 | Pending, awaiting examination |  |
| Bahrain | 20180214 | 05/29/17 | Cancelled by the Company |  |
| Qatar | QA/201811/00509 | 05/29/17 | Pending, under examination |  |
| Oman | OM/P/2018/00361 | 05/29/17 | Pending, awaiting examination |  |
| Saudi Arabia | 518400466 | 05/29/17 | Allowed |  |
| Kuwait | PCT/209/2018 | 05/29/17 | Pending, awaiting<br> examination |  |
| India | IN 201817044625 | 05/29/17 | Granted | 387,661<br> January 28, 2022 |
| Mexico | MX/a/2018/014685 | 05/29/17 | Pending, awaiting<br> examination |  |
| Japan | JP 2018-562109 | 05/29/17 | Granted | 6,928,620<br> August 11, 2021 |
| Korea | KR 10-2018-<br> 7038110 | 05/29/17 | Granted | 10-2400001<br> May 16, 2022 |

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<sup>7</sup> *https://www.ipcollective.ca/*

*ESAC Patent Family*

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Country/ Region** | **Application No.** | **Filing Date** | **Status** | **Patent No. and Issue date if applicable** |
| US | 16/345,470 | 10/11/17<br> (NPE Apr. 2019) | Granted | 11,165,053<br> November 2, 2021 |
| Canada | 3041909 | 10/11/17<br>| Pending, |  |
| China | 2017780066964.8 | 10/11/17<br>| Allowed |  |
| Europe (Albania, Austria, Belgium, Bulgaria, Switzerland, Cyprus, Czech Republic, Germany, Denmark, Estonia, Spain, Finland, France, United Kingdom, Greece, Croatia, Hungary, Ireland, Iceland, Italy, Liechtenstein, Lithuania, Luxembourg, Latvia, Monaco, Former Yugoslav Republic of Macedonia, Malta, Netherlands, Norway, Poland, Portugal, Romania, Serbia, Sweden, Slovenia, Slovakia, San Marino, Turkey) | EP17 863 330.1 | 10/11/17<br>| Pending, under examination |  |
| India | 201917016396 | 10/11/17<br>| Pending, under<br> examination | Response to 1st Examiner's<br> report filed July 2021 |
| Japan | 2019-521430 | 10/11/17<br>| Allowed |  |
| Korea | 10-2019-7012235 | 10/11/17<br>| Allowed | Patent No. 10-2019-7012235; Issue date<br> October 14th, 2022 |

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*Patent Family for Bitumen Extraction using Activated Carbon Invention<sup>(1)</sup>:*

US 16/314,061 06/30/17 (NPE Dec. 2018) Granted 11,060,035 July 13, 2021 <br> Canada 3,029,448 06/30/17 Pending, awaiting examination

(1) Invention for using ASAC to enhance hot water washing efficiency in bitumen recovery from oil sand ores.

**Health, Work Safety, Social and Environmental Matters**

We endeavor to provide a safe and healthy working environment to our employees and subcontractors at work sites, requiring people at work sites to strictly comply with relevant safety requirements. We require strict implementation of safety measures under the supervision of the responsible project management team or relevant subcontractors' management. The regular inspections by the responsible project management team at work sites are intended to ensure the work is conducted in such a manner that reduces, as much as practicable, the risks of injury and damage to persons and properties. In the years ended December 31, 2021 and 2022 and up to the date of this prospectus, there were no material accidents in the course of our business operation which gave rise to claims and compensation paid to our employees and also no interruptions in our business which may or have had a significant effect on our financial position.

The operation and expansion of our manufacturing facilities are subject to strict environmental laws and regulations at the national, provincial, and local level in various jurisdictions, and, over the next several years, we expect that we and the industry in general will become subject to new or more stringent environmental requirements. These laws and regulations generally require us to obtain and comply with various environmental registrations, licenses, permits, inspections, and other approvals. As required by the current laws and regulations, we have obtained approval from Alberta Environment and Parks, under Section 44 of the Environmental Protection and Enhancement Act that an environmental impact assessment report is not required. However, Section 47 of the Environmental Protection and Enhancement Act allows the Minister of Environment and Parks the authority to order an environmental impact assessment report, resulting in some uncertainty to the exclusion. Prior to July 31, 2022, we held CDN$2.5 million in environmental insurance that covered the construction of our Nisku plant and our research facilities. Subsequent to July 31, 2022, hawse have removed our environmental rider until such time as the Nisku plant is being fully commissioned at which time it is our intention to once again pick up the additional environmental insurance coverage. We have implemented rigorous waste and emissions management systems as an integral part of our operations. While our laboratory testing has concluded that both our air and water waste will not materially affect the environment nor breach environmental regulations, we have designed in safeguards and protections such as waste water capture and evaporator systems, exhaust scrubbers and air and water filtration systems. We believe there to be an active market for our waste solids in the agriculture industry operating near our Nisku plant.

Our operations emit carbon dioxide and other greenhouse gases. There are industrial standards in Canada that limit the amount of greenhouse gas emissions and is under the oversight of Environment and Climate Change Canada, Alberta Environment and Parks, and the municipal codes of Leduc County. A number of other legislative and regulatory measures to address greenhouse gas emissions, including the Kyoto Protocol and Canada's 2030 Emissions Reduction Plan, are in various phases of implementation or discussion. The systems and measures could result in increased costs for us should we need to install new controls beyond the measures already taken and may require advanced monitoring systems not currently planned.

Even though we devote considerable efforts to comply with environmental laws, regulations, and permits, there can be no assurance that our operations will at all times be in compliance with them. The enactment of new environmental laws and regulations, the more stringent interpretation or enforcement of existing requirements, or the imposition of liabilities under environmental laws could force us to incur costs for compliance, capital upgrades, or liabilities relating to potential damage claims or limit our current or planned operations.

**Legal Proceedings**

From time to time, we may become a party to various legal or administrative proceedings arising in the ordinary course of our business, including actions with respect to intellectual property infringement, violation of third-party licenses or other rights, breach of contract and labor and employment claims. We are currently not a party to any material legal or administrative proceedings. We may from time to time be subject to various legal or administrative claims and proceedings arising in the ordinary course of business. Litigation or any other legal or administrative proceeding, regardless of the outcome, is likely to result in substantial cost and diversion of our resources, including our management's time and attention. To our knowledge, our subsidiaries, directors, and officers are not a party to any known, pending or threatened legal proceedings.

**Internal Control and Risk Management**

In order to ensure compliance with applicable laws and regulations and related policies in different operational aspects, we have established and adopted an internal control system, covering areas such as, among other things (i) organization structure, responsibilities and authorities; (ii) operational planning and control; (iii) human resources management; (iv) risk management including emergency preparedness and response; and (v) internal audit. In addition, our Group has endorsed the integrated management system manual, the health and safety management plan, and the environmental promotion and control plan. We believe that our internal control system is sufficient and effective.

**MANAGEMENT**

**Executive Officers and Directors** 

The following tables sets forth information regarding our directors and executive officers as of the date of this prospectus.

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| | | |
|:---|:---|:---|
| **Name** | **Age** | **Position(s)** |
| ***Executive Officers and Employee Directors*** |  |  |
| Dr. Yanguang Yuan | 59 | Chief Executive Officer and Director |
| Ronald Michael Steele | 60 | Chief Financial Officer and Corporate Secretary |
| Dr. Weixing Chen | 59 | Chief Technology Officer |
| ***Non-Employee Directors*** |  |  |
| Dr. Grzegorz Ombach <sup>(1)(2)(3)</sup> | 50 | Chairman of the Board |
| John Meekison <sup>(1)(2)(3)</sup> | 58 | Director |
| Philip Chong <sup>(1)(3)</sup> | 65 | Director |

---

(1) Member of our audit committee

(2) Member of our compensation committee

(3) Member of our nominating and governance committee

The following are brief biographies describing the backgrounds of our executive officers and non-employee directors:

***Executive Officers and Employee Directors***

**Dr. Yanguang Yuan ("YY"), P.Eng., P.Geol., Chief Executive Officer and Director**

Dr. Yuan has served as our Chief Executive Officer since March 2021 and a director since January 2017. Dr. Yuan (affectionately known as "YY") brings more than 35 years of experience in the field of geological sciences, as well as engineering in academics, research, and the upstream oil and gas industry to his role at the Company. Passionate about making positive change in the world, Dr. Yuan has deep expertise in technology development and commercialization. He provides a rare blend of scientific knowledge, industry insight, creativity, and business acumen to his leadership role – and is always ready to support, encourage and mentor the more junior team members. Prior to AdvEn, Dr. Yuan founded BitCan Geosciences & Engineering Inc. and has grown it into a world-renowned, independent, integrated technology and service company that specializes in geomechanics.

From January 2000 to present, Dr. Yuan has been the owner and principal shareholder of BitCan Geosciences & Engineering Inc., providing technology development and technical consulting services for the upstream oil and gas industry world-wide.

We believe that Dr. Yuan is qualified to serve as our Chief Executive Officer and on our Board because of his expertise and experience in the industry.

**Ronald Michael Steele, CPA, CMA, Chief Financial Officer and Corporate Secretary**

Mr. Steele has served as our Chief Financial Officer since May 2021. Mr. Steele is a seasoned business leader with expertise in strategy, finance and marketing-communications. Mr. Steele has developed global teams (Americas, Europe, Asia and Caribbean) acting as a senior executive, financial advisor and entrepreneur. He has been actively developing and executing strategy; growing and financing businesses for more than 20 years and participated in transactions ranging from under $2 million to more than $750 million. Mr. Steele is a Principal with the Chief Financial Officer Centre, the world's largest provider of part-time Chief Financial Officers operating in 14 countries with more than 400 Chief Financial Officers world-wide.

For the past five years, Mr. Steele has acted as President of Granite Creek Capital Corp., a boutique advisory firm specializing in consulting on mergers and acquisitions. Recently he acted for Natural Health Services Ltd. as Chief Financial Officer negotiating and structuring the company's $22.5 million acquisition by Sunniva Inc. He subsequently acted as Sunniva's Chief Financial Officer for a year building its foundation finance, accounting, legal, IT, and investor relations infrastructure. He also ensured a successful initial public offering and the Company's listing on the Canadian Stock Exchange with a resulting market capitalization of approximately $400 million.

He previously led the $13.7 million leveraged buy-out of EnviroVault Corporation and acted as its Chief Financial Officer for two years. Prior to that, he acted as Vice President Strategic Development and Co-founder of Asian Coast Development (Canada) Ltd.; Vice President of Communications and Strategy for World Gaming PLC, Managing Director of Inphinity Interactive; and Vice President and Co-Founder of the boutique marketing and communications firm The Matridigm Corporation.

Mr. Steele is currently a director and the treasurer for the Alberta Society of Artists. He previously held the role of Director and Membership Committee Chair for the Rotary Club of Vancouver and Director of the SAIT Alumni Association.

 ****

**Dr. Weixing Chen P.Eng., Ph.D., Chief Technology Officer** 

Dr. Chen has served as our Chief Technology Officer since 2020. As the founder of the Company and co-inventor of the core ASAC and ESAC technologies, Dr. Chen provides technical leadership in material innovation and process optimization. His role is to steer the team to ensure that ASAC technology and products are positioned to transform the activated carbon industry. An expert on material degradation for oil and gas, as well as petrochemical infrastructure, Dr. Chen is a respected professional in those industries. He brings more than 20 years of experience in material engineering research and development to his role at the Company and has been at the forefront of several industrial innovations. He is a tenured professor with the University of Alberta, has published more than 180 technical papers and co-authored two books, and has given more than 100 technical keynote talks and presentations. Dr. Chen holds a Ph.D. in Material Science and Engineering from the University of Manitoba and an M.S. and B.S. in physical metallurgy from the Dalian University of Technology in China.

Dr. Chen has been an assistant professor, associate professor and a full professor at the University of Alberta since 1999 in the Chemical and Materials Engineering Department.

 ****

***Non-Employee Directors***

**Dr. Grzegorz Ombach, Chairman of the Board** 

Mr. Ombach has served as Chairman of our Board since April 2022. Mr. Ombach is a seasoned international senior executive with 25+ years of experience in technology, power systems, strategy, and innovation. As the Chairman of our Board, he brings a range of expertise that he earned as Senior Vice President and Head of Disruptive Research and Technology for Airbus where he is responsible for global research, development, and innovation. Prior to joining Airbus in April of 2022, Greg was also the former Executive Vice President for Draexlmaier Group (revenue EUR 5 billion, 75,000 employees) where he was head of strategy, innovation, and battery systems from June 2020 through April 2022. He was also a Vice President and General Manager for Qualcomm from April 2012 through July of 2019 where he was focused on the technology licensing business.

Due to his extensive business leadership experience, we believe Mr. Ombach is well qualified to be the Chairman of our Board.

**John Meekison, CPA, CMA, CIM, P.Log., Director** 

Mr. Meekison has served as a member of our Board since April 2021. Mr. Meekison has more than 27 years of extensive experience as a Chief Financial Officer and investment banker having worked with a range of public and private sector organizations. During the past 12 years, John has acted as a career Chief Financial Officer and holds multiple designations including his Certified Public Accountant, Certified Management Accountant, Certified Investment Manager, and Professional Logistician, and a Bachelor of Arts from the University of British Columbia. Mr. Meekison is currently acting as the Chief Financial Officer of Exro Technologies Inc. (TSX: EXRO; OTCQB: EXROF) and is a director of Agriforce Growing Systems Ltd. (Nasdaq: AGRI) and Telo Genomics Corp. (TSXV: TELO; OTCQB: TDSGF). John has served Exro since October of 2017.

Due to his extensive financial advisory, investment banking, and his education background, we believe Mr. Meekison is well qualified to serve as a member of our Board.

**Philip Chong, Director**

Mr. Chong has served as a member of our Board since December 2021. Mr. Chong is a business entrepreneur with more than 33 years of international business experience in various industries, including financial investment, property development, manufacturing, clean energy, internet, life science and food industry. He spent the first 10 years of his career in the banking industry in both Hong Kong and Toronto with responsibilities in project finance, corporate finance, trade finance, mergers and acquisitions, and investment banking.

Mr. Chong has been the President and Director of KNP Group Inc. since December 1998. KNP is an investment company that holds interests in Silver Spider Knitting Ltd. and KNP Headware. He has also served as CEO and Director of Mega View Digital Entertainment Corp. (TSXV: MVD.H) since April 2017.

Due to his extensive entrepreneurial and board experience, we believe Mr. Chong is well qualified to serve as a member of our Board.

**Board of Directors**

Our Board consists of four directors. Until changed in accordance with the ABCA, the board shall consist of that number of directors, being a minimum of one (1) and a maximum of ten (10), as determined from time to time by resolution of the board. Each director is required to be not less than 18 years of age. No person who is of unsound mind and has been so found by a court in Canada or elsewhere or who has the status of a bankrupt may be a director. If a director acquires the status of a bankrupt or becomes of unsound mind, he or she shall thereupon be removed as a director. A director need not be shareholder. Our Board shall hold meetings on at least a quarterly basis.

There are no membership qualifications for directors. Further, there are no share ownership qualifications for directors unless so fixed by us in a general meeting. There are no other arrangements or understandings pursuant to which our directors are elected or nominated.

A director may vote, attend a board meeting or sign a document on our behalf with respect to any contract or transaction in which he or she is interested. A director who is a party to, or who is a director or an officer of, or has a material interest in any person who is party to, a material contract or transaction or proposed material contract or transaction with us, is required to disclose in writing to us or request to have entered in the minutes of meetings of directors the nature and extent of his or her interest, which disclosure shall be made as required by the ABCA.

**Corporate Governance** 

The business and affairs of the Company are managed under the direction of our Board. Each of our directors has attended all meetings either in person, via telephone conference, or through written consent for special meetings. Shareholders will be given specific information on how they can direct communications to the officers and directors of the Company at our annual shareholders' meetings. All communications from shareholders are relayed to the members of the Board.

**Duties of Directors**

Under Alberta's laws, our directors have a duty of loyalty to act honestly in good faith with a view to the best interests of us as a whole. Our directors also have a duty to exercise the skill they actually possess and such care and diligence that a reasonably prudent person would exercise in comparable circumstances.

In fulfilling their duty of care to us, our directors must ensure compliance with our Articles of Incorporation. A shareholder may, in some circumstances, have the right to seek damages in our name if a duty owed by our directors is breached.

**Board Leadership Structure and Risk Oversight**

The Board oversees our business and considers the risks associated with our business strategy and decisions. The Board currently implements its risk oversight function as a whole. As such, it is important for us to have our Chief Executive Officer serve on the Board as he plays key roles in the risk oversight of our Company. Each of the Board committees, when established prior to the effectiveness of the registration statement of which this prospectus is a part, will also provide risk oversight in respect of its areas of concentration and report material risks to the Board for further consideration.

**Family Relationships**

There are no family relationships among any of our executive officers or directors.

**Director Independence**

Our Board is composed of a majority of "independent directors" as defined under the rules of Nasdaq. We use the definition of "*independence*" applied by Nasdaq to make this determination. Nasdaq Listing Rule 5605(a)(2) provides that an "*independent director*" is a person other than an officer or employee of the company or any other individual having a relationship which, in the opinion of the Company's Board, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The Nasdaq listing rules provide that a director cannot be considered independent if:

&nbsp;&nbsp;&nbsp;&nbsp;· the director is, or at any time during the past three (3) years was, an employee of the company;

&nbsp;&nbsp;&nbsp;&nbsp;· the director or a family member of the director accepted any compensation from the company in excess of
$120,000 during any period of twelve (12) consecutive months within the three (3) years preceding the independence determination (subject
to certain exemptions, including, among other things, compensation for board or board committee service);

&nbsp;&nbsp;&nbsp;&nbsp;· the director or a family member of the director is a partner in, controlling shareholder of, or an executive
officer of an entity to which the company made, or from which the company received, payments in the current or any of the past three fiscal
years that exceed 5% of the recipient's consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain
exemptions);

&nbsp;&nbsp;&nbsp;&nbsp;· the director or a family member of the director is employed as an executive officer of an entity where,
at any time during the past three (3) years, any of the executive officers of the company served on the compensation committee of such
other entity; or

&nbsp;&nbsp;&nbsp;&nbsp;· the director or a family member of the director is a current partner of the company's outside auditor,
or at any time during the past three (3) years was a partner or employee of the company's outside auditor, and who worked on the
company's audit.

Under such definitions, our Board has undertaken a review of the independence of each director. Based on information provided by each director concerning his background, employment and affiliations, our Board has determined that a majority of our directors (John Meekison, Grzegorz Ombach, and one vacant position) are independent directors of the Company. However, our Common Shares are not currently quoted or listed on any national exchange or interdealer quotation system with a requirement that a majority of our Board be independent and, therefore, the Company is not subject to any director independence requirements.

**Committees of the Board of Directors**

Three committees will be established under the Board prior to the effectiveness of the registration statement of which this prospectus is a part: the Audit Committee, the Compensation Committee and the Nominating Committee.

***Audit Committee***

Our audit committee will be responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· appointing, compensating,
 retaining, evaluating, terminating and overseeing our independent registered public accounting firm;

· discussing with our independent
 registered public accounting firm their independence from management;

· reviewing, with our independent
 registered public accounting firm, the scope and results of their audit;

· approving all audit and
 permissible non-audit services to be performed by our independent registered public accounting firm;

· overseeing the financial
 reporting process and discussing with management and our independent registered public accounting firm any financial statements that
 we file with the SEC;

· overseeing our financial
 and accounting controls and compliance with legal and regulatory requirements;

· reviewing our policies
 on risk assessment and risk management;

· reviewing related person
 transactions; and

· establishing procedures
 for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters.

Upon the consummation of this offering, the audit committee will be composed of John Meekison, Grzegorz (Greg) Ombach and Philip Chong with John Meekison serving as chair. John Meekison qualifies as an "audit committee financial expert" as such term has been defined in Item 407(d)(5) of SEC Regulation S-K. Our Board has affirmatively determined that John Meekison and Dr. Grzegorz Ombach each meet the definition of "independent director" for purposes of serving on the audit committee under the Nasdaq rules and the independence standards under Rule 10A-3 of the Exchange Act. Philip Chong owns 15.2% voting power of the Company if options are exercised.

Following this offering, both our independent registered public accounting firm and management personnel will periodically meet privately with our audit committee.

***Nominating and Corporate Governance Committee***

Our nominating and corporate governance committee will be responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· identifying individuals
 qualified to become members of our Board, consistent with criteria approved by our Board;

· overseeing succession planning
 for our executive officers;

· periodically reviewing
 our Board's leadership structure and recommending any proposed changes to our Board;

· reviewing our policies
 on risk assessment and risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· overseeing an annual evaluation
 of the effectiveness of our Board and its committees; and

· developing and recommending
 to our Board a set of corporate governance guidelines.

Upon the consummation of this offering, the nominating and corporate governance committee will be composed of John Meekison, Grzegorz (Greg) Ombach, and Philip Chong with John Meekison serving as chair. Our Board has affirmatively determined that John Meekison and Dr. Grzegorz Ombach each meet the definition of "independent director" for purposes of serving on the nominating and corporate governance committee under the Nasdaq rules.

***Compensation Committee***

Our compensation committee will be responsible for, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· reviewing and approving
 the corporate goals and objectives, evaluating the performance and reviewing and approving the compensation of our executive officers;

· reviewing and approving
 or making recommendations to our Board regarding our incentive compensation and equity-based plans, policies and programs;

· reviewing and approving
 all employment agreement and severance arrangements for our executive officers;

· reviewing our policies
 on risk assessment and risk management;

· making recommendations
 to our Board regarding the compensation of our directors; and

· retaining and overseeing
 any compensation consultants.

Upon the consummation of this offering, the compensation committee will be composed of John Meekison and Dr. Grzegorz Ombach with John Meekison serving as chair. Our Board has affirmatively determined that John Meekison and Dr. Grzegorz Ombach each meet the definition of "independent director" for purposes of serving on the compensation committee under the Nasdaq rules.

**Code of Ethics and Business Conduct**

Our Board will adopt, with effect from listing, a written code of ethics and business conduct, which is a "code of ethics" as defined in section 406(c) of Sarbanes-Oxley, that applies to our directors, officers, and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions, and other of our agents.

**Compensation Committee Interlocks and Insider Participation** 

None of the members of the compensation committee is currently or has been at any time one of our officers or employees. With the exception of Dr. Yanguang Yuan, Philip Chong, and Dr. Weixing Chen, none of our executive officers currently serves, or has served during the last year, as a member of the Board or compensation committee of any entity that has one or more executive officers serving as a member of our Board or compensation committee.

**2022 Director Compensation** 

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| | | | |
|:---|:---|:---|:---|
| **Name** | **Fees Earned or Paid in Cash<br> ($)** | **Option**<br> **Awards<br> ($)<sup>(1)</sup>** | **Total ($)** |
| Dr. Yanguang Yuan | 120000 |  | 120000 |
| Philip Chong |  |  |  |
| John Meekison |  |  |  |
| Dr. Grzegorz Ombach | 40632 | 64412 | 111485 |

---

(1) Option awards for 2022 are estimated by management and subject to audit by the Company's auditors.

In addition, we have reimbursed and will continue to reimburse all our non-employee directors for their reasonable out-of-pocket expenses incurred in attending Board and committee meetings.

We intend to approve and implement a compensation policy for our non-employee directors, to be effective in connection with the consummation of this offering.

**Terms of Directors and Officers**

Directors are elected to serve for one year at each annual meeting of shareholders. Officers are appointed by the Board. Each director and officer shall hold office until their successor is appointed or until their resignation, removal, or death, whichever shall first occur.

**Indemnification Agreements**

We have entered into indemnification agreements with each of our directors and officers that provide such persons with additional indemnification beyond that provided in our current Articles of Incorporation.

**Interested Transactions**

A director may, subject to any separate requirement for audit and risk committee approval under applicable law or applicable Nasdaq rules, vote in respect of any contract or transaction in which he or she is interested, provided that the nature of the interest of any directors in such contract or transaction is disclosed by him or her at or prior to its consideration and any vote in that matter.

**Foreign Private Issuer Status**

As a foreign private issuer, the Company will be exempt from certain rules under the Exchange Act, and its officers, directors and principal shareholders will be exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, the Company will also be permitted to follow corporate governance practices in accordance with Alberta law in lieu of most of the corporate governance rules set forth by Nasdaq, other than the Nasdaq's requirements that it must (1) have an audit committee that meets the requirements of Exchange Act Rule 10A-3 and (2) provide Nasdaq prompt notification from its chief executive officer of non-compliance with applicable provisions of the corporate governance rules. Notably, the Company will be permitted to follow corporate governance practices in accordance with Alberta law in lieu of Nasdaq's requirements concerning (i) a majority independent board, (ii) the independence of the nominating and corporate governance committee, and (iii) independence of the compensation committee. The Company has elected to follow the corporate governance rules of Nasdaq at this time. Notwithstanding the foregoing, we are not required to and, in reliance on home country practice, we do not intend to, comply with certain Nasdaq rules regarding shareholder approval for certain issuances of securities under Nasdaq Rule 5635.

**Other Corporate Governance Matters**

The Sarbanes-Oxley Act, as well as related rules subsequently implemented by the SEC, requires foreign private issuers, including us, to comply with various corporate governance practices. In addition, Nasdaq rules provide that foreign private issuers may follow home country practices in lieu of the Nasdaq corporate governance standards, subject to certain exceptions and except to the extent that such exemptions would be contrary to U.S. federal securities laws.

Because we are a foreign private issuer, our members of our Board, executive Board members and senior management are not subject to short-swing profit and insider trading reporting obligations under section 16 of the Exchange Act. They will, however, be subject to the obligations to report changes in share ownership under section 13 of the Exchange Act and related SEC rules.

**EXECUTIVE COMPENSATION**

The following is a discussion and analysis of compensation arrangements of our named executive officers. This discussion contains forward-looking statements that are based on our current plans, considerations, expectations and determinations regarding future compensation programs. Actual compensation programs that we adopt may differ materially from currently planned programs as summarized in this discussion. As an "emerging growth company" as defined in the JOBS Act, we are not required to include a Compensation Discussion and Analysis section and have elected to comply with the scaled disclosure requirements applicable to emerging growth companies.

**Overview**

Our current executive compensation program is intended to align executive compensation with our business objectives and to enable us to attract, retain and reward executive officers who contribute to our long-term success. The compensation paid or awarded to our executive officers is generally based on the assessment of each individual's performance compared against the business objectives established for the fiscal year as well as our historical compensation practices. In the case of new hire executive officers, their compensation is primarily determined based on the negotiations of the parties as well as our historical compensation practices. For 2021, the material elements of our executive compensation program were base salary and share purchase options.

This section provides a discussion of the compensation paid or awarded to our Chief Executive Officer and our two other most highly compensated executive officers as of December 31, 2022 and December 31, 2021. We refer to these individuals as our "named executive officers." For 2022 and 2021, our named executive officers were:

&nbsp;&nbsp;&nbsp;&nbsp;· Dr.
 Yanguang Yuan, Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;· Ronald
 Michael Steele, Chief Financial Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;· Dr.
 Weixing Chen, Chief Technical Officer

**Summary Compensation Table** 

The following table illustrates the compensation paid by the Company to its executive officers. The disclosure is provided for the years ended December 31, 2022 and December 31, 2021.

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| | | | | |
|:---|:---|:---|:---|:---|
| <br> Name and Principal Position | Year | Salary ($)<sup>(1)</sup> | Stock Award<br> ($)<sup>(2)</sup> | Total ($) |
| Dr. Yanguang Yuan, Chief Executive Officer and | 2022 | $120000 | $— | $120000 |
| Director | 2021 | 325000 | 1062285 | 1387285 |
| Ronald Michael Steele, Chief Financial Officer and | 2022 | $180000 | $150850 | $330850 |
| Corporate Secretary | 2021 | 120000 | 465142 | 585142 |
| Dr. Weixing Chen, Chief Technology Officer | 2022 | $120000 | $— | $120000 |
|  | 2021 | 120000 | 66000 | 186000 |

---

(1) We periodically review, and may increase, base
 salaries in accordance with the Company's normal annual compensation review for each of our named executive officers.

(2) Represents the dollar amount recognized in our
 financial statements and calculated in accordance with IFRS 2.

(3) During the year ended December 31, 2021,
the Company entered into a service agreement for engineering for management services with a company owned by the Company's Chief
Executive Officer. Fees paid during the year for the service agreement totaled $325,000.

**Equity Awards**

None.

**Employment Agreements** 

We have entered into employment agreements with each of our executive officers for a specified time period providing that the agreements are terminable for cause at any time. The terms of these agreement are substantially similar to each other. A senior executive officer may terminate his or her employment at any time by 30-day prior written notice. We may terminate the executive officer's employment for cause, at any time, without advance notice or remuneration, for certain acts of the executive officer, such as conviction or plea of guilty to a felony or any crime involving moral turpitude, negligent or dishonest acts to our detriment, or misconduct or a failure to perform agreed duties.

Each executive officer has agreed to hold in strict confidence and not to use, except for the benefit of our Company, any proprietary information, technical data, trade secrets and know-how of our Company or the confidential or proprietary information of any third party, including our subsidiaries and our clients, received by our Company. Each of these executive officers has also agreed to be bound by noncompetition and non-solicitation restrictions for a period equal to the length of time determined by severance in lieu of notice, after the termination of these agreement. during the term of his or her employment and typically for two years following the last date of employment.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

In addition to the executive officer and director compensation arrangements discussed in "*Executive Compensation*," below we describe transactions which we have been a participant, in which the amount involved in the transactions is material to us or the related party. While the Board has not yet adopted a formal related party policy, we comply with Item 404 of Regulation S-K. We define a related party as:

&nbsp;&nbsp;&nbsp;&nbsp;· a person who is or was (since the beginning of the last fiscal year for which the Company has completed
an audit and issued a form of proxy statement for an annual general meeting, (even if they do not presently serve in that role) an executive
officer, director or nominee for election as a director;

&nbsp;&nbsp;&nbsp;&nbsp;· a person (including company, investment funds, etc.) who holds or controls greater than 5% beneficial
ownership of our common stock; or

&nbsp;&nbsp;&nbsp;&nbsp;· Immediate Family Member of any of the foregoing.

We further define a related party transaction as any financial transaction, arrangement or relationship or series of similar transactions, arrangements or relationships (including any indebtedness or guarantee of indebtedness) in which:

&nbsp;&nbsp;&nbsp;&nbsp;· the aggregate amount involved will or may be expected to exceed $120,000 in any calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;· the Company or any of its subsidiaries is a participant; or

&nbsp;&nbsp;&nbsp;&nbsp;· any related party has or will have a direct or indirect interest.

Related party transactions are brought to the Corporate Secretary and Chairman of the Audit Committee. The Audit Committee will then evaluate each related party transaction based on the following minimum criteria:

&nbsp;&nbsp;&nbsp;&nbsp;· whether the related party transaction is on terms no less favorable than terms generally available to
an unaffiliated third-party under the same or similar circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;· whether the related party transaction would impair the independence of any director;

&nbsp;&nbsp;&nbsp;&nbsp;· the extent of the related person's interest in the related party transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;· any other information regarding the related party transaction that may be material to investors or inconsistent
with the best interests of the Company and its stockholders in light of the facts and circumstances of the particular transaction.

The relationship of related parties is summarized as follows:

---

| | |
|:---|:---|
| **Name of Related Party** | **Relationship to the Company** |
| <br> Tangold Inc. | <br> Tangold Inc. resulted from a technology spinout effective February 14, 2021 and completed on December 25, 2021. The transaction was a share exchange between Tangold and AdvEn Industries resulting in the transfer of 26 million Tangold shares for the license of carbon fibre technologies then owned by the Company. The Patent and Know How licensed were based on U.S. Provisional Patent Application No. 63/092,912. The patent was split into three components: carbon fibre; solid bitumen; and the residual fields. The received shares were concurrently distributed to the then shareholders of AdvEn by way of special resolution of the Board. Tangold is a debtor to the Company by way of a non-interest-bearing demand loan. As of the date of this prospectus, Tangold is indebted to AdvEn $446,000 and this amount has been written down in each of the years ending 2021 and 2022. The Company's Chief Executive Officer, Chief Technology Officer and one director (Philip Chong) act as officers and directors of Tangold.<br>Effective May 30, 2022, AdvEn entered into an amended and restated Technology Acquisition Agreement. This agreement transfers the underlying patent application to Tangold for consideration of 1,150,500 voting common shares with an estimated value of $250,000 representing 1.56% of the issued and outstanding common shares of Tangold. The Company retains all afore mentioned rights to the residual fields including any derivative technologies resulting from the patent application.<br>Please see "*note 23.c and 23.d of the enclosed Notes to the Consolidated Financial Statements for the years ended December 31, 2021 and December 31, 2020.*"<br>|
| AdvEn Solid Bitumen Inc. | AdvEn Solid Bitumen Inc. ("Bitumen") resulted from a technology spinout effective February 14, 2021 and completed on December 25, 2021. The transaction was a share exchange between Bitumen and AdvEn Industries resulting in the transfer of 26 million Bitumen shares for the license of solid bitumen technologies then owned by the Company. The shares were concurrently distributed to the then shareholders of AdvEn by way of special resolution of the Board. Bitumen is a debtor to the Company by way of a non-interest-bearing demand loan. As of the date of this prospectus, Bitumen owes AdvEn $73,000 and this amount has been written down in each of the years ending 2021 and 2022. The Company's Chief Executive Officer, Chief Technology Officer and one director (Philip Chong) act as officers and directors of Tangold.<br>As at May 30, 2022, Bitumen's license is with Tangold. AdvEn does not retain any ownership of this entity.<br>Please see "*note 23.c and 23.d of the enclosed Notes to the Consolidated Financial Statements for the years ended December 31, 2021 and December 31, 2020.*"<br>|
| BitCan Geosciences and Engineering Inc. | BitCan Geosciences and Engineering Inc. ("Bitcan") is a company materially owned by the Chief Executive Officer. During the year ended December 31, 2021, the Company entered into service agreement for engineering for management services. Fees paid during the year for the service agreement totalled $325,000 (2020 $220,315). Bitcan is also holder of 2,168,614 (6.6%) of the Company's Common Shares. Bitcan acquired shares from May 2020 through March 2021 at an average cost of $0.16 per share for total paid in capital of approximately $353,000. AdvEn holds no ownership interest in BitCan.<br>|
| 1367054 Alberta Ltd.<br>| 1367054 Alberta Ltd, ("7054") is a company materially owned by the Chief Executive Officer and holds 7,903,986 (24.2%) of the Company's Common Shares. The shares were acquired from June 2018 through May 2021 at an average cost per share of $0.28 for total paid in capital of approximately $2.2 million. AdvEn holds no ownership interest in 7054.<br>|
| KNP Group Inc. | KNP Group Inc. ("KNP") is a company materially owned by Philip Chong, a director of AdvEn. KNP holds 4,869,815 (14.9%) of the Company's Common Shares. KNP acquired its shares during the period from October 2015 through February 2020 at an average cost of $0.12 per share for total paid in capital of approximately $567,000. AdvEn holds no ownership interest in KNP. |

---

**Director and Officer Indemnification** 

Our by-laws contain provisions for the indemnification of our directors and officers. Additionally, we have entered into indemnity agreements with all our directors and executive officers. See "*Description of Share Capital—Limitation of Liability and Indemnification of Directors and Officers.*"

**Policies and Procedures for Related Person Transactions**

Prior to the closing of this offering, our Board will adopt a related person transaction policy setting forth the policies and procedures for the identification, review and approval or ratification of related person transactions. This policy covers, with certain exceptions set forth in Item 404 of Regulation S-K under the Securities Act, any transaction, arrangement or relationship, or any series of similar transactions, arrangements or relationships, in which we and a related person were or will be participants and the amount involved exceeds $120,000, including purchases of goods or services by or from the related person or entities in which the related person has a material interest, indebtedness and guarantees of indebtedness. In reviewing and approving any such transactions, our audit committee will consider all relevant facts and circumstances as appropriate, such as the purpose of the transaction, the availability of other sources of comparable products or services, whether the transaction is on terms comparable to those that could be obtained in an arm's length transaction, management's recommendation with respect to the proposed related person transaction, and the extent of the related person's interest in the transaction.

**PRINCIPAL SHAREHOLDERS**

The following table sets forth information regarding the beneficial ownership of our Common Shares as of the date of this prospectus by our officers, directors, director nominees and five percent or greater beneficial owners of Common Shares. There is no other person or group of affiliated persons known by us to beneficially own more than five percent of our Common Shares.

Beneficial ownership is determined according to the rules of the SEC and generally means that a person has beneficial ownership of a security if he, she, or it possesses sole or shared voting or investment power of that security. Except as indicated by the footnotes below, we believe, based on the information furnished to us, that the persons named in the table below have sole voting and investment power with respect to all Common Shares shown that they beneficially own, subject to community property where applicable. The information does not necessarily indicate beneficial ownership for any other purpose.

Our calculation of the number of shares and percentage of beneficial ownership prior to this offering is based on 32,750,000 issued and outstanding Common Shares as of the date of this prospectus with an allowance for additional 628,444 Common Shares that may be acquired through the exercise of options on or before June 30, 2023. Our calculation of the number of shares and percentage of beneficial ownership after this offering is based on [●] Common Shares outstanding after the closing of this offering, assuming no exercise of the underwriters' option to purchase additional Common Shares.

Unless otherwise indicated, the address of each beneficial owner listed in the table below is Suite 2320, 140 – 4th Avenue S.W., Calgary, Alberta, Canada T2P 3N3.

The following table is subject to change should any of the following exercise options, additional grants or transfers before making this document final.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name of Beneficial Owner** | **Shares of Voting<br> Common Share<br> Beneficially<br> Owned Before and<br> After this Offering** | **Options <br> currently <br> held and <br> vested prior <br> to June 30, <br> 2023** | **Total<br> Voting <br> Common <br> Shares if <br> Options are <br> Exercised** | **% of Voting <br> Common <br> Shares Prior <br> to Offering if <br> Options are <br> Exercised** | **% of Voting<br> Common <br> Shares <br> following <br> Offering if <br> Options are <br> Exercised** |
| ***Directors and Named Executive Officers:*** | | | | | |
| Dr. Yanguang Yuan | 10072600 |  | 10072600 | 30.2% |  |
| Ronald Michael Steele | 50000 | 280000 | 330000 | 1.0% |  |
| Dr. Weixing Chen | 6055066 |  | 6055066 | 18.1% |  |
| Grzegorz Ombach |  | 102000 | 102000 | 0.3% |  |
| John Meekison | 500000 |  | 500000 | 1.5% |  |
| Philip Chong | 5063163 |  | 5063163 | 15.2% |  |
| **All executive officers and directors as a group (5 persons)** | **21740829** | **280000** | **22020829** | **66.3%** |  |
| ***5%+ Shareholders:*** |  |  |  |  |  |
| Ingo Mueller | 2225000 | 196444 | 2421444 | 7.3% |  |
| Arni Johannson | 4633982 | 152000 | 4785982 | 14.3% |  |

---

As of the date of this prospectus, 1,198,758 of our outstanding Common Shares are held by a single record holder in the United States.

We are not aware of any arrangement that may, at a subsequent date, result in a change of control of our Company.

**DESCRIPTION OF SHARE CAPITAL**

 

**General**

The following is a summary of the rights of our Common Shares as set forth in our articles and Bylaws each as currently in effect, and certain related sections of the ABCA. We were incorporated as "Nano Innovations Inc." on November 9, 2017 under the British Columbia Business Corporations Act. We continued to the ABCA effective July 27, 2022 and changed our name to "Adven Inc." in connection with the continuation. We are governed by the ABCA, as well as the articles of continuance that we filed in connection with our continuation under the ABCA (our "articles") and our Bylaws which we adopted upon our continuation. This summary does not purport to be complete and is qualified in its entirety by the full text of our articles and Bylaws.

Our authorized share capital consists of (i) an unlimited number of Common Shares, which do not have any special rights or restrictions, and (ii) an unlimited number of preferred shares, each without par value ("Preferred Shares"), with the rights specified in our articles, as described below.

The following description of our share capital and provisions of our articles and Bylaws are summaries of material terms and provisions and are qualified by reference to our articles and Bylaws, copies of which have been filed with the SEC as exhibits to the registration statement of which this prospectus is a part.

As of the date of this prospectus, we had 32,750,000 Common Shares issued and outstanding, and no Preferred Shares and no warrants exercisable for Common Shares and no securities convertible into Common Shares are issued and outstanding (with an allowance for an additional 628,444 Common Shares that may be acquired through the exercise of options on or before June 30, 2023). We will effect a stock split prior to the closing of this offering at a ratio to be determined. Immediately following the closing of this offering, we expect to have issued and outstanding Common Shares (Common Shares if the underwriters' option to purchase additional Common Shares is exercised in full).

**Rights, Preferences and Restrictions Attaching to Our Common Shares**

The ABCA and our articles provides the following rights, privileges, restrictions and conditions attaching to our Common Shares:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 right to one vote at all meetings of shareholders of the Company, except meetings at which
 only holders of a specified class of shares are entitled to vote;

&nbsp;&nbsp;&nbsp;&nbsp;· subject
 to the prior rights and privileges attaching to any other class of shares of our Company;
 and

&nbsp;&nbsp;&nbsp;&nbsp;· subject
 to the prior rights and privileges attaching to any other class of shares of the Company,
 the right to receive the remaining property and assets of the Company upon.

Each holder of Common Shares is entitled to receive notice of and to attend all meetings of shareholders of the Company, except meeting at which only holders of a specified class of shares (other than Common Shares) or a specified series of shares are entitled to vote. At such meetings attended by holders of Common Shares, each holder of Common Shares is entitled to one vote in respect of each Common Share held by the holder. Holders are entitled to elect all nominees to the Board of the Company.

Subject to the rights, privileges, restrictions, conditions, and limitations of any other class of shares of the Company, holders of our Common Share are entitled to receive any dividends of the Company and, upon a liquidation, dissolution of winding-up of the Company, whether voluntary or involuntary, to receive the remaining property of the Company.

**Rights, Preferences and Restrictions Attaching to Our Preferred Shares**

Our Articles of Incorporation provides the following rights, privileges, restrictions and conditions attaching to our Preferred Shares:

<u>Designation of Series of the Preferred Shares</u>

Our Board is authorized to issue Preferred Shares at any time and from time to time be issued in one or more series as designated by the directors of the Company. Any series of Preferred Shares designated by our Board will consist of such number of shares as may, before the issue thereof, be determined by resolution of our Board. If our Board exercises its authority under the ABCA and the articles to designated a series of Preferred Shares, the Board will, before the issuance of any shares of such series, send articles of amendment to the registrar under the ABCA in the form required to designated the series of shares.

<u>Rights and Restrictions of the Preferred Shares</u>

Subject to the provisions of the ABCA, our Board may by resolution fix from time to time before the issue of any series of Preferred Shares the designation, rights, privileges, restrictions and conditions attaching to each series of the Preferred Shares, including, but without limiting or restricting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 rate or amount of dividends (whether cumulative, non-cumulative or partially cumulative)
 and the dates;

&nbsp;&nbsp;&nbsp;&nbsp;· places
 of payment thereof;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 consideration for, and the terms and conditions of, any purchase for cancellation or redemption
 thereof;

&nbsp;&nbsp;&nbsp;&nbsp;· (including
 redemption after a fixed term or at a premium);

&nbsp;&nbsp;&nbsp;&nbsp;· the
 terms and conditions of any conversion or exchange rights;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 terms and conditions of any share purchase plan or sinking fund; restrictions respecting
 payment of dividends on, or the repayment of capital in respect of, any other shares of the
 Company; and

&nbsp;&nbsp;&nbsp;&nbsp;· any
 voting rights and restrictions attached to the series of Preferred Shares.

<u>Participation in Assets on Dissolution</u>

The holders of Preferred Shares shall be entitled, on the liquidation or dissolution of the Company, whether voluntary or involuntary, or on any other distribution of its assets among the shareholders of the Company for the purpose of winding up its affairs, to receive, before any distribution is made to the holders of Common Shares or any other shares of the Company ranking junior to the Preferred Shares with respect to repayment of capital on the liquidation or dissolution of the Company, whether voluntary or involuntary, or on any other distribution of its assets among its shareholders for the purpose of winding up its affairs, the amount paid up with respect to each Preferred Share held by them, together with the fixed premium (if any) thereon, all accrued and unpaid cumulative dividends (if any and if preferential) thereon, which for such purpose shall be calculated as if such dividends were accruing on a day-to-day basis up to the date of such distribution, whether or not earned or declared, and all declared and unpaid non-cumulative dividends (if any and if preferential) thereon. After payment to the holders of 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.

<u>Amendment of the Articles of Incorporation</u>

Confirmation of any special resolution to amend our articles to delete or vary any preference, right, condition, restriction, limitation or prohibition attaching to the Preferred Shares or to create special shares ranking in priority to or on a parity with the Preferred Shares may be given by at least two-thirds (2/3) of the votes cast at a meeting of the holders of the Preference share duly called for that purpose.

The holders of the Common Shares and the Preferred Shares, or any series thereof, need not rank equally nor be treated equally in the declaration or payment of dividends. Our Board shall have full and absolute discretion to declare and pay dividends to the holders of one or more classes of shares, or any series thereof, to the exclusion of the other classes of shares, or any series thereof, and in different amounts to the holders of different classes of shares, or any series thereof; provided that all dividends paid on any particular class of shares, or any series thereof, shall be paid in proportion to the number of shares of such class, or any series thereof, that are held by each shareholder.

**Shareholder Meetings**

The ABCA provides that: (i) a general meeting of shareholders shall be held at such place in or outside Alberta as the directors determine or, in the absence of such a determination, at our registered office is located; (ii) directors must call an annual meeting of shareholders not later than 18 months after the date of incorporation and no later than 15 months after the last preceding annual meeting; (iii) for the purpose of determining shareholders entitled to receive notice of or vote at meetings of shareholders, the directors may fix in advance a date as the record date for that determination, provided that such date shall not precede by more than 50 days or by less than 21 days; (iv) the holders of not less than five percent of the issued shares entitled to vote at a meeting may requisition the directors to call a meeting of shareholders for the purposes stated in the requisition; (v) only shareholders entitled to vote at the meeting, our directors and our auditor are entitled to be present at a meeting of shareholders; and (vi) upon the application of a director or shareholder entitled to vote at the meeting, the Superior Court of King's Bench of Alberta may order a meeting to be called, held and conducted in a manner that the Court directs.

Our Bylaws provide that a quorum is met when holders of not less than 33 1/3% of the votes entitled to be voted at the meeting are present in person or represented by proxy.

The holders of our Common Shares are entitled to attend and vote at all meetings of our shareholders.

**Fully Paid and Non-assessable**

All outstanding Common Shares are, and the Common Shares to be outstanding upon completion of this offering will be duly authorized, validly issued, fully paid and non-assessable.

**Our Objects and Purposes**

Article 5 of our articles does not impose any restrictions on the business that we may carry on or on the powers the Company may exercise.

**Authority of Directors**

A director who is a party to, or who is a director or officer of or has a material interest in any person who is a party to, a material contract or transaction or proposed material contract or transaction with the Company shall disclose in writing to the Company, or request to have entered in the minutes of the Board meeting, the nature and extent of his or her interest at the time and in the manner provided by the ABCA. Such a director shall not vote on any resolution to approve the same except as provided by the ABCA.

Under the Bylaws, our directors shall be paid such remuneration for their services as our Board may from time to time determine. The directors shall also be entitled to be reimbursed for travelling and other expenses properly incurred by them in attending meetings of the Board or any committee thereof. Under the charter of the Compensation Committee to be adopted by the Board, the Committee will be delegated with the authority to determine the compensation of directors, including the directors who are members of the committee.

Article 3 of the Bylaws grants the Board to authorize us to borrow money, issue debt obligations, guarantee the performance of obligations of other parties and grant a security interest in our assets to secure our obligations. In addition, Article 3 of the Bylaws provides that the Board may delegate such powers to a director or a committee of directors.

Neither our articles or Bylaws provide for any age limit requirement regarding the retirement of directors or require directors to be shareholders.

**Penny Stock Regulation**

The SEC has adopted regulations which generally define "penny stock" to be any equity security that has a market price of less than USD$5.00 per share or an exercise price of less than USD$5.00 per share. Such securities are subject to rules that impose additional sales practice requirements on broker-dealers who sell them. For transactions covered by these rules, the broker-dealer must make a special suitability determination for the purchaser of such securities and have received the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the transaction, of a disclosure schedule prepared by the SEC relating to the penny stock market. The broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, current quotations for the securities and, if the broker-dealer is the sole market-maker, the broker-dealer must disclose this fact and the broker-dealer's presumed control over the market. Finally, among other requirements, monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks. As our Common Shares immediately following this offering may be subject to such penny stock rules, purchasers in this offering will likely find it more difficult to sell their Common Shares in the secondary market.

We will be listing on The Nasdaq Capital Market which requires a minimum share price of USD$4.00 per share. Our shares will be subject to market conditions that may, or may not, elevate our share price beyond USD$5.00 per share and as such we may be defined by the SEC as a penny stock. In addition, if listed on Nasdaq, we may fail to meet continued listing standards and be delisted, thus exposing investors to potential risks of owning our securities.

**Limitations on Liability and Indemnification of Officers and Directors**

Under the ABCA, and except in respect of an action by or on behalf of the Company to procure a judgment in our favour, we may indemnify our current or former directors or officers or another individual who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved by reason of being or having been a director or officer of that corporation or body corporate, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 director or officer acted honestly and in good faith with a view to the best interests of
 the corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;· in
 the case of a criminal or administrative action or proceeding that is enforced by a monetary
 penalty, the director or officer had reasonable grounds for believing that the director's
 or officer's conduct was lawful.

The ABCA also provides that we may also advance money to a director, officer or other individual for costs, charges and expenses incurred in connection with such a proceeding.

Our Bylaws require us to indemnify each of our current or former directors or officers and each individual who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of his or her association with us or another entity provided that we shall not indemnify any such individual unless he or she:

&nbsp;&nbsp;&nbsp;&nbsp;· a
 view to the best interests of the Company or, as the case may be, to the best interests of
 the other entity for which he or she acted as a director or officer or in a similar capacity
 at the Company's request; and

&nbsp;&nbsp;&nbsp;&nbsp;· in
 the case of a criminal or administrative action or proceeding that is enforced by a monetary
 penalty, he or she had reasonable grounds for believing that his or her conduct was lawful.

In addition, our Bylaws require us to advance money to a director, officer or other individual for costs, charges and expenses incurred in connection with such a proceeding.

Under the ABCA, we are permitted to purchase and maintain insurance for the benefit of each of our current or former directors or officers and each person who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity.

Prior to the completion of the offering we intend to enter into indemnity agreements with our directors and certain officers which provide, among other things, that we will indemnify, including but not limited to the indemnity permitted under the ABCA and required under our Bylaws, him or her for losses reasonably incurred by reason of being or having been a director or officer; provided that, we shall not indemnify such individual if, among other things, he or she did not act honestly and in good faith with a view to our best interests and, in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual did not have reasonable grounds for believing that his or her conduct was lawful, and in so acting was in breach of the obligations under the indemnity agreement.

At present, we are not aware of any pending or threatened litigation or proceeding involving any of our directors, officers, employees or agents in which indemnification would be required or permitted.

**Registration of Common Shares**

All transfers of our securities shall be made in accordance with the ABCA and the Securities Transfer Act. Subject to the provisions of the ABCA and the Securities Transfer Act, no transfer of shares represented by a security certificate (as defined in the ABCA) shall be registered in a securities register except upon presentation of the certificate representing such shares with an endorsement which complies with the ABCA and the Securities Transfer Act made thereon or delivered therewith duly executed by an appropriate person as provided by the ABCA and the Securities Transfer Act, together with such reasonable assurance that the endorsement is genuine and effective as the Board may from time to time prescribe, upon payment of all applicable taxes and any fees prescribed by the Board, upon compliance with such restrictions on transfer as are authorized by the articles and upon satisfaction of certain liens enumerated in the Bylaws. While the Common Shares currently issued and outstanding are physically certificated, we anticipate that the Common Shares sold in this offering will be DTC eligible and can be held and transferred through book entry.

**Transfer Agent and Registrar**

The U.S. transfer agent and registrar for our Common Shares is Odyssey Trust Company, located at 2155 Woodlane Drive, Woodbury, MN 55125.

**Listing**

We have applied to have our Common Shares listed on Nasdaq under the symbol "ADVI." We cannot guarantee that we will be successful in listing our Common Shares on Nasdaq. We will not complete this offering unless we are so listed.

**Exchange Controls**

There is currently no law, governmental decree or regulation in Canada that restricts the export or import of capital, or which would affect the remittance of dividends, interest or other payments by us to non-resident holders of our Common Shares, other than withholding tax requirements.

There is no limitation imposed by Canadian law or by our articles of amendment on the right of a non-resident to hold or vote our Common Shares, other than those imposed by the Investment Canada Act and the Competition Act (Canada). These acts will generally not apply except where a control of an existing Canadian business or company, which has Canadian assets or revenue over a certain threshold, is acquired and will not apply to trading generally of securities listed on a stock exchange.

**Competition Act**

Limitations on the ability to acquire and hold our Common Shares may be imposed by the Competition Act (Canada). This legislation permits the Commissioner of Competition, or Commissioner, to review any acquisition or establishment, directly or indirectly, including through the acquisition of shares, of control over or of a significant interest in us. This legislation grants the Commissioner jurisdiction, for up to one year after the acquisition has been substantially completed, to seek a remedial order, including an order to prohibit the acquisition or require divestitures, from the Canadian Competition Tribunal, which order may be granted where the Competition Tribunal finds that the acquisition substantially prevents or lessens, or is likely to substantially prevent or lessen, competition.

This legislation also requires any person or persons who intend to acquire more than 20% of our voting shares or, if such person or persons already own more than 20% of our voting shares prior to the acquisition, more than 50% of voting our shares, to file a notification with the Canadian Competition Bureau if certain financial thresholds are exceeded. Where a notification is required, unless an exemption is available, the legislation prohibits completion of the acquisition until the expiration of the applicable statutory waiting period, unless the Commissioner either waives or terminates such waiting period.

**Investment Canada Act**

The Investment Canada Act requires each "non Canadian" (as defined in the Investment Canada Act) who acquires "control" of an existing "Canadian business", to file a notification in prescribed form with the responsible federal government department or departments not later than 30 days after closing, provided the acquisition of control is not a reviewable transaction by Canadian authorities. Subject to certain exemptions, a transaction that is reviewable under the Investment Canada Act may not be implemented until an application for review has been filed and the responsible Minister of the federal cabinet has determined that the investment is likely to be of "net benefit to Canada" taking into account certain factors set out in the Investment Canada Act. Under the Investment Canada Act, trade agreement investors from countries with most-favoured nation treatment under Canada's free trade agreements (including the European Union, the United States, Australia, Chile, Colombia, Honduras, Japan, Mexico, New Zealand, Panama, Peru, Singapore, South Korea, the United Kingdom, Vietnam) that are not State-Owned Enterprises generally will be required to file a pre-closing application for review and approval when directly acquiring a Canadian business where the enterprise value exceeds C$1.711 billion (indexed annually) in 2022. World Trade Organization ("WTO") investors (i.e. firms controlled in WTO countries) that are not State-Owned Enterprises and that do not enjoy the benefit of the most-favored nation trade agreements noted above generally will be required to file a pre-closing application for review and approval when directly acquiring a Canadian business where the enterprise value exceeds C$1.141 billion in 2022 (indexed annually). For direct acquisitions by WTO country State-Owned Enterprises, determination of the threshold for approval is based on asset book value rather than enterprise value. The asset size threshold was C$454 million in 2022 and is indexed annually. The asset value threshold also applies for non-WTO country State-Owned Enterprises that acquire control of a Canadian business that was, immediately prior to the investment, controlled by a WTO Investor.

The Investment Canada Act contains various rules to determine if there has been an acquisition of control. For example, for purposes of determining whether an investor has acquired control of a corporation by acquiring shares, the following general rules apply, subject to certain exceptions: the acquisition of a majority of the undivided ownership interests in the voting shares of the corporation is deemed to be acquisition of control of that corporation; the acquisition of less than a majority, but one-third or more, of the voting shares of a corporation or of an equivalent undivided ownership interest in the voting shares of the corporation is presumed to be acquisition of control of that corporation unless it can be established that, on the acquisition, the corporation is not controlled in fact by the acquirer through the ownership of voting shares; and the acquisition of less than one third of the voting shares of a corporation or of an equivalent undivided ownership interest in the voting shares of the corporation is deemed not to be acquisition of control of that corporation.

Under Investment Canada Act also includes a national security review regime under which a review on a discretionary basis may also be undertaken by the federal government in respect to a much broader range of investments by a non-Canadian to "acquire, in whole or part, or to establish an entity carrying on all or any part of its operations in Canada. "No financial threshold applies to a national security review. The relevant test is whether such investment by a non-Canadian could be "injurious to national security." The federal government has broad discretion to determine whether an investor is a non-Canadian and therefore subject to national security review. Review on national security grounds is at the discretion of the Canadian government and may occur on a pre- or post-closing basis.

Certain transactions relating to our Common Shares will generally be exempt from the Investment Canada Act, subject to the federal government's prerogative to conduct a national security review, including:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 acquisition of our Common Shares by a person in the ordinary course of that person's
 business as a trader or dealer in securities;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 acquisition of control of us in connection with the realization of security granted for a
 loan or other financial assistance and not for any purpose related to the provisions of the
 Investment Canada Act; and

&nbsp;&nbsp;&nbsp;&nbsp;· the
 acquisition of control of us by reason of an amalgamation, merger, consolidation or corporate
 reorganization following which the ultimate direct or indirect control in fact of us, through
 ownership of our Common Shares, remains unchanged.

**Comparison of Shareholder Rights** 

We are a corporation governed by the ABCA. The following discussion summarizes material differences between the rights of holders of our Common Shares and the rights of holders of the Common Shares of a typical corporation incorporated under the laws of the state of Delaware, which result from differences in governing documents and the laws of Alberta and Delaware. This summary is qualified in its entirety by reference to the Delaware General Corporation Law, or the DGCL, the ABCA, and our articles and our Bylaws.

---

| | |
|:---|:---|
| **Delaware** | **ABCA** |
| **Stockholder/Shareholder Approval of Business Combinations; Fundamental Changes** | **Stockholder/Shareholder Approval of Business Combinations; Fundamental Changes** |
| Under the DGCL, certain fundamental changes such as amendments to the certificate of incorporation, a merger, consolidation, sale, lease, exchange or other disposition of all or substantially all of the property of a corporation not in the usual and regular course of the corporation's business, or a dissolution of the corporation, are generally required to be approved by the holders of a majority of the outstanding stock entitled to vote on the matter, unless the certificate of incorporation requires a higher percentage.<br>| Under the ABCA and our articles, certain fundamental changes, such as amendments to the articles, certain by-laws amendments, continuances to another jurisdiction, certain amalgamations, a lease, sale or transfer of all or substantially all of the property of a company other than in the ordinary course of business, liquidations, dissolutions, and certain arrangements are required to be approved by special resolution. |

---

---

| | |
|:---|:---|
| **Delaware** | **ABCA** |
| However, under the DGCL, mergers in which less than 20% of a corporation's stock outstanding immediately prior to the effective date of the merger is issued generally do not require stockholder approval. In certain situations, the approval of a business combination may require approval by a certain number of the holders of a class or series of shares. In addition, Section 251(h) of the DGCL provides that stockholders of a constituent corporation need not vote to approve a merger if: (i) the merger agreement permits or requires the merger to be effected under Section 251(h) and provides that the merger shall be effected as soon as practicable following the tender offer or exchange offer, (ii) a corporation consummates a tender or exchange offer for any and all of the outstanding stock of such constituent corporation that would otherwise be entitled to vote to approve the merger, (iii) following the consummation of the offer, the stock accepted for purchase or exchanges plus the stock owned by the consummating corporation equals at least the percentage of stock that would be required to adopt the agreement of merger under the DGCL, (iv) the corporation consummating the offer merges with or into such constituent corporation and (v) each outstanding share of each class or series of stock of the constituent corporation that was the subject of and not irrevocably accepted for purchase or exchange in the offer is to be converted in the merger into, or the right to receive, the same consideration to be paid for the shares of such class or series of stock of the constituent corporation irrevocably purchased or exchanged in such offer.<br>The DGCL does not contain a procedure comparable to a plan of arrangement under ABCA. | A special resolution is a resolution (i) passed by not less than two-thirds of the votes cast by the shareholders who voted in respect of the resolution at a meeting duly called and held for that purpose; or (ii) signed by all shareholders entitled to vote on the resolution.<br>In specified cases, a special resolution to approve an extraordinary corporate action is also required to be approved separately by the holders of a class or series of shares, including in certain cases a class or series of shares not otherwise carrying voting rights. In specified extraordinary corporate actions, all shares have a vote, whether or not they generally vote and, in certain cases, have separate class votes.<br>Under the ABCA, arrangements are permitted and a company may make any proposal it considers appropriate. In general, a plan of arrangement is approved by a company's board of directors and then is submitted to a court for approval. It is customary for a company in such circumstances to apply to a court initially for an interim order governing various procedural matters prior to calling any security holder meeting to consider the proposed arrangement. Plans of arrangement involving shareholders must be approved by a special resolution of shareholders, (or such higher approval that a court may require) and may provide that holders of shares not normally entitled to vote may vote on the arrangement. The court determines, among other things, to whom notice shall be given and whether, and in what manner, approval of any person is to be obtained and also determines whether any shareholders may dissent from the proposed arrangement and receive payment of the fair value of their shares. Following compliance with the procedural steps contemplated in any such interim order (including as to obtaining security holder approval), the court would conduct a final hearing and approve or reject the proposed arrangement.<br>The ABCA does not contain a provision comparable to Section 251(h) of the DGCL.<br>|

---

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
| **Special Vote Required for Combinations with Interested Stockholders/Shareholders** | **Special Vote Required for Combinations with Interested Stockholders/Shareholders** |
| Section 203 of the DGCL provides (in general) that a corporation may not engage in a business combination with an interested stockholder for a period of three years after the time of the transaction in which the person became an interested stockholder.<br>The prohibition on business combinations with interested stockholders does not apply in some cases, including if: (i) the board of directors of the corporation, prior to the time of the transaction in which the person became an interested stockholder, approves (a) the business combination or (b) the transaction in which the stockholder becomes an interested stockholder; (ii) upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced; or (iii) the board of directors and the holders of at least two-thirds of the outstanding voting stock not owned by the interested stockholder approve the business combination on or after the time of the transaction in which the person became an interested stockholder.<br>For the purpose of Section 203, the DGCL, subject to specified exceptions, generally defines an interested stockholder to include any person who, together with that person's affiliates or associates, (i) owns 15% or more of the outstanding voting stock of the corporation (including any rights to acquire stock pursuant to an option, warrant, agreement, arrangement or understanding, or upon the exercise of conversion or exchange rights, and stock with respect to which the person has voting rights only), or (ii) is an affiliate or associate of the corporation and owned 15% or more of the outstanding voting stock of the corporation at any time within the previous three years. | The ABCA does not contain a provision comparable to Section 203 of the DGCL with respect to business combinations. However, in Canada, takeovers and other related party transactions are addressed in provincial securities legislation and policies which may apply to us.<br>In addition, we will be subject to Canadian Multilateral Instrument 61-101—*Protection of Minority Security Holders in Special Transactions* or MI 61-101 which if we become a reporting issuer under Canadian securities laws through the filing of a prospectus in Canada or our securities becoming traded on a stock exchange in Canada. MI 61-101 is applicable to Canadian reporting issuers and contains detailed requirements in connection with "related party transactions." A "related party transaction" as defined under M I61-101 means, generally, any transaction by which an issuer, directly or indirectly, consummates one or more specified transactions with a related party, including purchasing or disposing of an asset, issuing securities or assuming liabilities. "Related party" as defined in MI 61-101 includes (i) directors and senior officers of the issuer, (ii) holders of voting securities of the issuer carrying more than 10% of the voting rights attached to all the issuer's outstanding voting securities and (iii) holders of a sufficient number of any securities of the issuer to materially affect control of the issuer.<br>MI 61-101 requires, subject to certain exceptions, specific detailed disclosure in the proxy circular sent to security holders in connection with a related party transaction where a meeting is required and, subject to certain exceptions, the preparation of a formal valuation of the subject matter of the related party transaction and any non-cash consideration offered in connection therewith, and the inclusion of a summary of the valuation in the proxy circular. MI 61-101 also requires, subject to certain exceptions, that an issuer not engage in a related party transaction unless the disinterested shareholders of the issuer have approved the related party transaction by a simple majority of the votes cast.<br>The filing and effectiveness of the registration statement of which this prospectus forms a part with the SEC will not, by itself, make us a reporting issuer in Canada and subject us to the provisions of MI 61-101. |

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| | |
|:---|:---|
| **Delaware** | &nbsp;&nbsp;**ABCA** |
| &nbsp;&nbsp;**Appraisal Rights; Rights to Dissent** | &nbsp;&nbsp;**Appraisal Rights; Rights to Dissent** |
| Under the DGCL, a stockholder of a corporation participating in some types of major corporate transactions may, under varying circumstances, be entitled to appraisal rights pursuant to which the stockholder may receive cash in the amount of the fair market value of his or her shares in lieu of the consideration he or she would otherwise receive in the transaction.<br>For example, a stockholder is entitled to appraisal rights in the case of a merger or consolidation if the shareholder is required to accept in exchange for the shares anything other than: (i) shares of stock of the corporation surviving or resulting from the merger or consolidation, or depository receipts in respect thereof; (ii) shares of any other corporation, or depository receipts in respect thereof, that on the effective date of the merger or consolidation will be either listed on a national securities exchange or held of record by more than 2,000 shareholders; (iii) cash instead of fractional shares of the corporation or fractional depository receipts of the corporation; or (iv) any combination of the shares of stock, depository receipts and cash instead of the fractional shares or fractional depository receipts. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The ABCA provides that shareholders of a corporation are entitled to exercise dissent rights and to be paid the fair value of their shares in connection with specified matters, including:<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any amalgamation with another corporation (other than with certain affiliated corporations);<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· an amendment to the corporation's articles to add, change or remove any provisions restricting or constraining the issue or transfer of shares of the class in respect of which a shareholder is dissenting;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· an amendment to the corporation's articles to add or remove an express statement establishing the unlimited liability of shareholders;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· an amendment to the corporation's articles to add, change or remove any restriction upon the business or businesses that the corporation may carry on;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a continuance under the laws of another jurisdiction;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a sale, lease or exchange of all, or substantially all, of the property of the corporation other than in the ordinary course of business;<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· a court order permitting a shareholder to dissent in connection with an application to the court for an order approving an arrangement proposed by the corporation; and<br>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· certain amendments to the articles of a corporation which require a separate class or series vote by a holder of shares of any class or series.<br>However, a shareholder is not entitled to dissent if an amendment to the articles is effected by a court order approving a reorganization or by a court order made in connection with an action for an oppression remedy. |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |

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| | |
|:---|:---|
| **Compulsory Acquisition** | **Compulsory Acquisition** |
| Under the DGCL, mergers in which one corporation owns 90% or more of each class of stock of a second corporation may be completed without the vote of the second corporation's board of directors or shareholders. | The CBCA provides that if, within 120 days after the making of an offer to acquire shares, or any class of shares, of a company, the offer is accepted by the holders of not less than 90% of the shares (other than the shares held by the offeror or an affiliate or associate of the offeror) of any class of shares to which the offer relates, the offeror is entitled, upon giving proper notice before the earlier of (i) 60 days from the termination of the offer; and (ii) 180 days from the making of the offer, to acquire (on the same terms on which the offeror acquired shares from those holders of shares who accepted the offer) the shares held by those holders of shares of that class who did not accept the offer. Offerees may, within 20 days of receiving notice, notify the offeror that they are not transferring their shares to the offeror but are demanding to be paid fair value as determined by a court. |
| **Stockholder/Shareholder Consent to Action Without Meeting** | **Stockholder/Shareholder Consent to Action Without Meeting** |
| Under the DGCL, unless otherwise provided in the certificate of incorporation, any action that can be taken at a meeting of the stockholders may be taken without a meeting if written consent to the action is signed by the holders of outstanding stock having not less than the minimum number of votes necessary to authorize or take the action at a meeting of the stockholders. | Under the CBCA, an action that can be taken at a meeting may only be taken without a meeting if the resolution with respect to that matter is signed by all shareholders entitled to vote thereon. |
| **Special Meetings of Stockholders/Shareholders** | **Special Meetings of Stockholders/Shareholders** |
| Under the DGCL, a special meeting of shareholders may be called by the board of directors of by such persons authorized in the certificate of incorporation or bylaws. | Under the ABCA and our by-laws, the directors may call a special meeting of the shareholders.<br>Additionally, under the ABCA, the holders of not less than 5% of the issued shares of a company that carry the right to vote at a meeting of shareholders may requisition that the directors call a meeting of shareholders for the purpose of transacting any business that may be transacted at a shareholders meeting. Upon receiving a requisition that complies with the technical requirements set out in the ABCA, the directors must, subject to certain limited exceptions, call a meeting of shareholders. If the directors do not call such a meeting within 21 days after receiving the requisition, the requisitioning shareholders or any of them may call the meeting. |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
| **Distributions and Dividends; Repurchases and Redemptions** | **Distributions and Dividends; Repurchases and Redemptions** |
| Under the DGCL, subject to any restrictions contained in the certificate of incorporation, a corporation may pay dividends out of capital surplus or, if there is no surplus, out of net profits for the current and/or the preceding fiscal year in which the dividend is declared, as long as the amount of capital of the corporation following the declaration and payment of the dividend is not less than the aggregate amount of the capital represented by issued and outstanding shares having a preference upon the distribution of assets. Surplus is defined in the DGCL as the excess of the net assets over capital, as such capital may be adjusted by the board.<br>A Delaware corporation may purchase or redeem shares of any class except when its capital is impaired or would be impaired by the purchase or redemption. A corporation may, however, purchase or redeem out of capital shares that are entitled upon any distribution of its assets to a preference over another class or series of its shares if the shares are to be retired and the capital reduced. | Under the ABCA, subject to any restrictions contained in its articles, a company may pay a dividend in fully paid shares, money or other property The ABCA will prohibit the<br> declaration or payment of dividends in circumstances where (i) there are reasonable grounds for believing that the company is or after the payment would be unable to pay its liabilities as they become due, or (ii) the realizable value of its assets would be less than the aggregate of its liabilities and its stated capital of all classes.<br>The purchase or other acquisition by a company of its shares is permitted subject to solvency tests similar to those applicable to the payment of dividends (as set out above). |
| **Vacancies on Board of Directors** | **Vacancies on Board of Directors** |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
| **Constitution and Residency of Directors** | **Constitution and Residency of Directors** |
| The DGCL does not have residency requirements, but a corporation may prescribe qualifications for directors under its certificate of incorporation or bylaws. | The ABCA likewise does not impose residency requirements on the Board of Directors. |
| **Removal of Directors; Terms of Directors** | **Removal of Directors; Terms of Directors** |
| Under the DGCL, except in the case of a corporation with a classified board or with cumulative voting, any director or the entire board may be removed, with or without cause, by the holders of a majority of the shares entitled to vote at an election of directors. | Under the ABCA, provided that articles of a corporation do not provide for cumulative voting, shareholders of the corporation may, by ordinary resolution passed at a special meeting, remove any director or directors from office.<br>Our by-laws allow for the removal of a director by ordinary resolution of the shareholders.<br>If holders of a class or series of shares have the exclusive right to elect one or more directors, a director elected by them may only be removed by an ordinary resolution at a meeting of the shareholders of that class or series. |
| **Inspection of Books and Records** | **Inspection of Books and Records** |
| Under the DGCL, any holder of record of stock or a person who is the beneficial owner of shares of such stock held either in a voting trust or by a nominee on behalf of such person may inspect the corporation's books and records for a proper purpose. | Under the ABCA, directors, shareholders, creditors and their representatives may inspect certain of the records of a company during usual business hours of the company and take copies of extracts free of charge. |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
| **Amendment of Governing Documents** | **Amendment of Governing Documents** |
| Under the DGCL, a certificate of incorporation may be amended if: (i) the board of directors adopts a resolution setting forth the proposed amendment, declares the advisability of the amendment and directs that it be submitted to a vote at a meeting of shareholders; provided that unless required by the certificate of incorporation, no meeting or vote is required to adopt an amendment for certain specified changes; and (ii) the holders of a majority of shares of stock entitled to vote on the matter approve the amendment, unless the certificate of incorporation requires the vote of a greater number of shares.<br>If a class vote on the amendment is required by the DGCL, a majority of the outstanding stock of the class is required, unless a greater proportion is specified in the certificate of incorporation or by other provisions of the DGCL.<br>Under the DGCL, the board of directors may amend a corporation's bylaws if so authorized in the certificate of incorporation. The shareholders of a Delaware corporation also have the power to amend bylaws. | Under the ABCA, any amendment to the articles of a corporation generally requires shareholder approval by special resolution. If a proposed amendment requires approval by special resolution (which requires the approval of not less than two-thirds of the votes cast by the shareholders), the holders of shares of a class (or of a series of a class, if the proposed amendment would affect such series differently from the other series of shares of such class) are entitled to vote separately as a class or series if the proposed amendment affects the class or series as specified in the ABCA, whether or not the class or series otherwise carries the right to vote. The ABCA provides, however, that no rights, privileges, restrictions or conditions attached to a series of shares shall confer on a series a priority in respect of dividends or return of capital over any other series of shares of the same class that are then outstanding.<br>Under the ABCA, unless the articles or by-laws otherwise provide, the board of directors of a corporation may, by resolution, make, amend or repeal by-laws that regulate the business or affairs of a corporation provided that any such by-law, amendment or repeal of a by-law must be confirmed at the next meeting of shareholders by the affirmative vote of a majority of the shareholders entitled to vote thereat. Any by-law or amendment is effective when made by the board of directors but ceases to be effective if not confirmed by the shareholders. If a by-law, amendment or repeal is rejected by shareholders, or the directors of a corporation do not submit a by-law, an amendment or a repeal to the shareholders at the next meeting of shareholders, then such by-law, amendment or repeal will cease to be effective and no subsequent resolution of the directors to make, amend or repeal a by-law having substantially the same purpose or effect is effective until it is confirmed or confirmed as amended by the shareholders. |
| **Indemnification of Directors and Officers** | **Indemnification of Directors and Officers** |
| Under the DGCL, subject to specified limitations in the case of derivative suits brought by a corporation's stockholders in its name, a corporation may indemnify any person who is made a party to any action, suit or proceeding on account of being a director, officer, employee or agent of the corporation (or was serving at the request of the corporation in such capacity for another corporation, partnership, joint venture, trust or other enterprise) against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him or her in connection with the action, suit or proceeding, provided that there is a determination that: (i) the individual acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the corporation; and (ii) in a criminal action or proceeding, the individual had no reasonable cause to believe his or her conduct was unlawful. Without court approval, however, no indemnification may be made in respect of any derivative action in which an individual is adjudged liable to the corporation, except to the extent the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity.<br>| Under the ABCA, a company may indemnify its current or former directors or officers or another individual who acts or acted at the company's request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of his or her association with the company or another entity. |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
| The DGCL requires indemnification of directors and officers for expenses (including attorneys' fees) actually and reasonably relating to a successful defense on the merits or otherwise of a derivative or third-party action.<br>Under the DGCL, a corporation may advance expenses relating to the defense of any proceeding to directors and officers upon the receipt of an undertaking by or on behalf of the individual to repay such amount if it shall ultimately be determined that such person is not entitled to be indemnified. | The ABCA also provides that a company may advance moneys to a director, officer or other individual for costs, charges and expenses incurred in connection with such a proceeding.<br>However, indemnification is prohibited under the ABCA unless the individual (i) acted honestly and in good faith with a view to the company's best interests, or the best interests of the other entity for which the individual acted as director or officer or in a similar capacity at the company's request; and (ii) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty, the individual had reasonable grounds for believing that his or her conduct was lawful.<br>Our by-laws require us to indemnify each of our current or former directors or officers and each individual who acts or acted at our request as a director or officer, or an individual acting in a similar capacity, of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of his or her association with us or another entity. |
| **Limited Liability of Directors** | **Limited Liability of Directors** |
| The DGCL permits the adoption of a provision in a corporation's certificate of incorporation limiting or eliminating the monetary liability of a director to a corporation or its shareholders by reason of a director's breach of the fiduciary duty of care. The DGCL does not permit any limitation of the liability of a director for: (i) breaching the duty of loyalty to the corporation or its shareholders; (ii) acts or omissions not in good faith; (iii) engaging in intentional misconduct or a known violation of law; (iv) obtaining an improper personal benefit from the corporation; or (v) paying a dividend or approving a stock repurchase that was illegal under applicable law. | Under the ABCA, a director or officer of a company must (i) act honestly and in good faith with a view to the best interests of the company; (ii) exercise the care, diligence and skill that a reasonably prudent individual would exercise in comparable circumstances; and (iii) comply with the ABCA, the regulations thereunder and the company's articles, by-laws and any unanimous shareholder agreement. These statutory duties are in addition to duties under common law and equity.<br>No provision in a contract or the articles, by-laws, or resolution of a company may relieve a director or officer of a company from the duty to act in accordance with the ABCA and the regulations thereunder, or from any liability for failing to do so. |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
|  | <br> The ABCA does not permit any limitation of a director's liability other than in connection with the adoption of a unanimous shareholder agreement that restricts certain powers of the directors. If such a unanimous shareholder agreement were adopted, the parties who are given the power to manage or supervise the management of the business and affairs of the corporation under such agreement assume all of the liabilities of a director under the ABCA.<br>Under the ABCA, a director is not liable for certain acts if the director has otherwise complied with his or her duties and otherwise exercised the degree of care, diligence and skill that a reasonably prudent person would have exercised in comparable circumstances, including relying in good faith, on (i) financial statements of the company represented to the director by an officer of the company or in a written report of the auditor of the company to fairly reflect the financial condition of the company; or (ii) a report of a person whose profession lends credibility to a statement made by the professional person. |
| **Stockholder/Shareholder Lawsuits** | **Stockholder/Shareholder Lawsuits** |
| Under the DGCL, a stockholder may bring a derivative action on behalf of the corporation to enforce the rights of the corporation; provided, however, that under Delaware case law, the plaintiff generally must be a stockholder not only at the time of the transaction which the subject of the suit, but through the duration of the derivative suit. Delaware law also requires that the derivative plaintiff make a demand on the directors of the corporation to assert the corporate claim before the suit may be prosecuted by the derivative plaintiff, unless such demand would be futile. An individual also may commence a class action suit on behalf of himself or herself and other similarly situated stockholders where the requirements for maintaining a class action have been met. | Under the ABCA, a current or former shareholder (including a current or former beneficial shareholder) of a company or any of its affiliates, a current or former director or officer of a company or any of its affiliates the "Director" appointed under the ABCA, or any other person who, in the discretion of the court, is a proper person may make an application to the court (each a "complainant") for leave to bring an action in the name and on behalf of the company or any of its subsidiaries, or intervene in an action to which the company or any of its subsidiaries is a party, to prosecute or defend an action on behalf of a company (a derivative action). No derivative action may be brought unless the court is satisfied that (i) notice of the application for leave has been given to the directors of the company or its subsidiary of the complainant's intention to apply to the court under subsection (1) not less than fourteen days before bringing the application, or as otherwise ordered by the court, if the directors of the corporation or its subsidiary do not bring, diligently prosecute or defend or discontinue the action; (ii) the complainant is acting in good faith; and (iii) it appears to be in the interests of the company for the action to be prosecuted or defended.<br>Under the ABCA, the court in a derivative action may make any order it thinks fit. |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
| **Oppression Remedy** | **Oppression Remedy** |
| Although the DGCL imposes upon directors and officers fiduciary duties of loyalty (i.e., a duty to act in a manner believed to be in the best interest of the corporation and its stockholders) and care, there is no remedy under the DGCL that is comparable to the ABCA's oppression remedy. | The ABCA's oppression remedy enables a court to make an order (interim or final) to rectify the matters complained of if the court is satisfied upon application by a complainant (as defined below) that (i) any act or omission of the company or any of its affiliates effects or threatens to effect a result, (ii) the business and affairs of the company or its affiliates are, have been or are threatened to be carried on or conducted in a manner, or (iii) the powers of the directors of the company or any of its affiliates are of have been exercised in a manner, that is, oppressive or unfairly prejudicial to, or that unfairly disregards, the interests of any security holder, creditor, director or officer of the company.<br>Under the ABCA, a "complainant" includes a current or former shareholder (including a current or former beneficial shareholder) of a company or any of its affiliates, a current or former director or officer of a company or any of its affiliates, the "Director" appointed under the ABCA or any other person who, in the discretion of the court, is a proper person to bring the application.<br>The oppression remedy provides the court with extremely broad and flexible jurisdiction to intervene in corporate affairs to protect shareholders and other complainants. |
| **Blank Check Preferred Stock/Shares** | **Blank Check Preferred Stock/Shares** |
| Under the DGCL, the certificate of incorporation of a corporation may give the board the right to issue new classes of preferred shares with voting, conversion, dividend distribution, and other rights to be determined by the board at the time of issuance, which could prevent a takeover attempt and thereby preclude shareholders from realizing a potential premium over the market value of their shares.<br>In addition, the DGCL does not prohibit a corporation from adopting a shareholder rights plan, or "poison pill," which could prevent a takeover attempt and also preclude shareholders from realizing a potential premium over the market value of their shares. | Under, and subject to, the ABCA, preferred shares may be issued in one or more series. The articles of incorporation may authorize a board of directors, without shareholder approval, to determine the maximum number of shares of each series, create an identifying name for each series and attach such special rights or restrictions, including redemption, dividend, liquidation and voting rights, as our board of directors may determine.<br>The issuance of preferred shares, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring or preventing a change of control of a corporation and may adversely affect the market price of a corporation's common shares. |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
|  | <br> In addition, the ABCA does not prohibit a corporation from adopting a shareholder rights plan, or "poison pill" which could prevent a takeover attempt and also preclude shareholders from realizing a potential premium over market value for their shares. |
| **Advanced Notice Requirements for Proposals of Stockholders/Shareholders** | **Advanced Notice Requirements for Proposals of Stockholders/Shareholders** |
| Delaware corporations typically have provisions in their bylaws that require a stockholder proposing a nominee for election to the board of directors or other proposals at an annual or special meeting of the stockholders to provide notice of any such proposals to the secretary of the corporation in advance of the meeting for any such proposal to be brought before the meeting of the stockholders. In addition, advance notice bylaws frequently require the stockholder nominating a person for election to the board of directors to provide information about the nominee, such as his or her age, address, employment and beneficial ownership of shares of the corporation's capital stock. The stockholder may also be required to disclose, among other things, his or her name, share ownership and agreement, arrangement or understanding with respect to such nomination.<br>For other proposals, the proposing stockholder is often required by the bylaws to provide a description of the proposal and any other information relating to such stockholder or beneficial owner, if any, on whose behalf that proposal is being made, required to be disclosed in a proxy statement or other filings required to be made in connection with solicitation of proxies for the proposal and pursuant to and in accordance with the Exchange Act and the rules and regulations promulgated thereunder. | Under the ABCA, proposals with respect to the nomination of candidates for election to the board of directors may be made by certain registered or beneficial holders of shares entitled to be voted at an annual meeting of shareholders. To be eligible to submit a proposal, a shareholder must be the registered or beneficial holder of, or have support of the registered or beneficial holders of, (i) at least 1% of the total number of outstanding voting shares of the corporation, or (ii) voting shares whose fair market value is at least $2,000 and such registered or beneficial holder(s) must have held such shares for at least six months immediately prior to the day upon which the shareholder submits the proposal. In order for a proposal to include nominations of directors, it must be signed by one or more holders of shares representing not less than 5% of the shares (or shares of a class) entitled to vote at the special meeting.<br>A proposal under the ABCA must include the name and address of the person submitting the proposal, the names and addresses of the person's supporters (if applicable), the number of shares of the company owned by such persons and the date upon which such shares were acquired.<br>If the proposal is submitted at least 90 days before the anniversary date of the notice of meeting sent to shareholders in connection with the previous annual meeting and the proposal meets other specified requirements, then the company shall either set out the proposal in the proxy circular of the company or attach the proposal thereto. In addition, if so requested by the person submitting the proposal, the company shall include in or attach to the proxy circular a statement in support of the proposal by the person (not to exceed 200 words) and the name and address of the person.<br>If a company refuses to include a proposal in a management proxy circular, the company shall notify the person in writing within 21 days after its receipt of the proposal (or proof of the person's ownership of securities) of its intention to omit the proposal and the reasons therefor. In any such event, the person submitting the proposal may make application to a court for an order permitting the company to omit the proposal from the management proxy circular and the court may make such order as it determines appropriate. |

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| | |
|:---|:---|
| **Delaware** | **ABCA** |
|  | <br> Any registered shareholder entitled to vote, or any beneficial shareholder whose shares are entitled to be voted, at a meeting of shareholders may also discuss at the meeting any matter in respect of which such shareholder would have been entitled to submit a proposal. |

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**Provisions of Alberta Securities Laws Governing Business Combinations**

All provinces of Canada have adopted Canadian National Instrument 62-104 entitled "Take-Over Bids and Issuer Bids" and related forms to harmonize and consolidate take-over bid and issuer bid regimes nationally ("NI 62-104"). The Canadian Securities Administrators, or CSA, have also issued National Policy 62-203 entitled "Take-Over Bids and Issuer Bids" (the "National Policy") which contains regulatory guidance on the interpretation and application of NI 62-104 and on the conduct of parties involved in a bid. The National Policy and NI 62-104 are collectively referred to as the "Bid Regime." The National Policy does not have the force of law, but it is an indication by the CSA of what the intentions and desires of the regulators are in the areas covered by their policies. Unlike some regimes where the take-over bid rules are primarily policy-driven, in Canada the regulatory framework for take-over bids is primarily rules-based, which rules are supported by policy.

The following take-over bid requirements will be applicable with respect to securities of the Company irrespective of whether the Company is a "reporting issuer" at the relevant time. The early-warning report requirements will only be applicable to an acquisition of securities of the Company if the Company is a "reporting issuer" at the relevant time. The Company is presently not a "reporting issuer" under the securities laws of any Canadian province or territory and will not become a "reporting issuer" in Canada as a result of the effectiveness of the registration statement of which this prospectus forms a part. However, the Company may determine to become a "reporting issuer" under Canadian securities laws in the future by filing a prospectus with Canadian securities regulatory authorities or becoming listed on a stock exchange in Canada.

**Takeover Bid Requirements**: A "take-over bid" or "bid" is an offer to acquire outstanding voting or equity securities of a class made to any person who is in one of the provinces of Canada or whose last address as shown on the books of a target is in such province, where the securities subject to the offer to acquire, together with the securities "beneficially owned" by the offeror, or any other person acting jointly or in concert with the offeror, constitute in the aggregate 20% or more of the outstanding securities of that class of securities at the date of the offer to acquire, but does not include an offer to acquire if the offer to acquire is a step in an amalgamation, merger, reorganization or arrangement that requires approval in a vote of security holders. For the purposes of the Bid Regime, a security is deemed to be "beneficially owned" by an offeror as of a specific date if the offeror is the beneficial owner of a security convertible into the security within 60 days following that date, or has a right or obligation permitting or requiring the offeror, whether or not on conditions, to acquire beneficial ownership of the security within 60 days by a single transaction or a series of linked transactions.

**Early Warning Report Requirements**: Offerors are also subject to early warning requirements, where an offeror who acquires "beneficial ownership of," or control or direction over, voting or equity securities of any class of a reporting issuer or securities convertible into, voting or equity securities of any class of a reporting issuer that, together with the offeror's securities, would constitute 10% or more of the outstanding securities of that class must promptly, and no later than the opening of trading on the business day following the acquisition, publicly issue and file a news release containing certain prescribed information, and, promptly, and no later than two business days from the date of the acquisition, file an early warning report containing substantially the same information as is contained in the news release. In addition, where an offeror is required to file an early warning report or a further report as described above and the offeror, or any person acting jointly or in concert with the offeror, acquires or disposes beneficial ownership of, or the power to exercise control or direction over, an additional 2% or more of the outstanding securities of the class or securities convertible into 2% or more of the outstanding securities of the class, or disposes of beneficial ownership of outstanding securities of the class below 10%, the offeror must issue an additional press release and file a new early warning report. Any material change in a previously filed early warning report also triggers the issuance and filing of a new press release and early warning report. During the period commencing on the occurrence of an event in respect of which an early warning report is required and terminating on the expiry of one business day from the date that the early warning report is filed, the offeror, or any person acting jointly or in concert with the offeror, may not acquire or offer to acquire beneficial ownership of, or control of direction over, any securities of the class in respect of which the early warning report was required to be filed or any securities convertible into securities of that class. This requirement does not apply to an offeror that has beneficial ownership of, or control or direction over, securities that, together with the offeror's securities of that class, comprise 20% of more of the outstanding securities of the class.

**SHARES ELIGIBLE FOR FUTURE SALE**

Prior to this offering, there has been no market for our Common Shares, and while we intended to apply for the listing of our Common Shares on the Nasdaq, we cannot assure you that an active trading market for our Common Shares will develop or be sustained after this offering. Future sales of substantial amounts of our Common Shares in the public market could adversely affect market prices prevailing from time to time. Furthermore, because only a limited number of common shares will be available for sale shortly after this offering due to existing contractual and legal restrictions on resale as described below, there may be sales of substantial amounts of our Common Shares in the public market after such restrictions lapse. This may adversely affect the prevailing market price of our Common Shares and our ability to raise equity capital in the future.

Upon completion of this offering, we will have common shares outstanding, or % common shares outstanding if the underwriters exercise their option in full to purchase additional common shares. Of these, common shares, or common shares if the underwriters exercise their option in full to purchase additional common shares, sold in this offering will be freely transferable without restriction or registration under the Securities Act, except for any shares purchased by one of our existing "affiliates," as that term is defined in Rule 144 under the Securities Act. The remaining common shares are "restricted shares" as defined in Rule 144. Restricted shares may be sold in the public market only if registered or if they qualify for an exemption from registration under the Securities Act.

**Lock-Up Agreements**

We, our directors, executive officers and certain holders of our equity securities have agreed with the underwriters that for a period of 180 days, after the date of this prospectus, subject to specified exceptions as detailed further in "*Underwriting*" below, we or they will not, except with the prior written consent of Representative, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to sale of or otherwise dispose of or transfer any our Common Shares or any securities convertible into or exercisable or exchangeable for shares of our Common Shares, request or demand that we file a registration statement related to our Common Shares, or enter into any swap or other agreement that transfers to another, in whole or in part, directly or indirectly, the economic consequence of ownership of the Common Shares.

Upon the expiration of the lock-up period, substantially all of the shares subject to such lock-up restrictions will become eligible for sale, subject to the limitations discussed above.

**United States Resale Restrictions** 

***Rule 144***

 ****

***Non-affiliates***

In general, under Rule 144 as currently in effect, once we have been subject to public company reporting requirements for at least 90 days, a person who is not deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and who has beneficially owned the shares proposed to be sold for at least six months, including the holding period of any prior owner other than our affiliates, is entitled to sell those shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the public information requirements of Rule 144. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then that person would be entitled to sell those shares without complying with any of the requirements of Rule 144.

***Affiliates***

In general, under Rule 144, as currently in effect, our affiliates or persons selling shares on behalf of our affiliates are entitled to sell upon expiration of the lock-up agreements described above, within any three-month period, a number of shares that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;· 1%
 of the number of shares of our Common Shares then outstanding, which will equal approximately
 shares immediately after this offering; or

&nbsp;&nbsp;&nbsp;&nbsp;· the
 average weekly trading volume of our Common Shares during the four calendar weeks preceding
 the filing of a notice on Form 144 with respect to that sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

***Rule 701***

Rule 701 generally allows a shareholder who purchased shares of our Common Shares pursuant to a written compensatory plan or contract and who is not deemed to have been our affiliate during the immediately preceding 90 days to sell these shares in reliance upon Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. Rule 701 also permits our affiliates to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required by that rule to wait until 90 days after the date of this prospectus before selling those shares pursuant to Rule 701 and are subject to the lock-up agreements described above.

***Regulation S***

Regulation S provides generally that sales made in offshore transactions are not subject to the registration or prospectus-delivery requirements of the Securities Act.

**Canadian Resale Restrictions** 

The Company is not a "reporting issuer" under the securities laws of any Canadian province or territory and will not become a "reporting issuer" in Canada as a result of the effectiveness of the registration statement of which this prospectus forms a part. As the Company is not a "reporting issuer" in Canada and has no obligation to become a "reporting issuer" in any jurisdiction in Canada, Canadian shareholders of the Company will not be able to resell their shares publicly in Canada. Accordingly, any resale of the securities by Canadian shareholders of the Company must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable Canadian securities laws. Notwithstanding that a Canadian shareholder may have purchased their securities pursuant to an available prospectus exemption in Canada, there is no assurance that a further exemption from Canadian prospectus requirements will be available to enable a Canadian purchaser to resell the securities acquired. Further, hold periods and manner of sale requirements may be imposed on Canadian purchasers in limited circumstances where exemptions may be available. Accordingly, any Canadian shareholder should consult with a legal advisor to ascertain the restrictions on resale that will be applicable them under the laws of their local jurisdiction.

Further, any sale of any of our Common Shares which constitutes a "control distribution" under Canadian securities laws (generally a sale by a person or a group of persons holding more than 20% of our outstanding voting securities) will be subject to restrictions under applicable Canadian securities laws in addition to those restrictions noted above, unless the sale is qualified under a prospectus filed with Canadian securities regulatory authorities or if the issuer is a reporting issuer in a jurisdiction of Canada and prior notice of the sale is filed with the Canadian securities regulatory authorities at least seven days before any sale and there has been compliance with certain other requirements and restrictions regarding the manner of sale, payment of commissions, reporting and availability of current public information about us and compliance with applicable Canadian securities laws.

**UNITED STATES AND CANADIAN INCOME TAX CONSIDERATIONS**

 

**UNITED STATES FEDERAL INCOME TAX CONSEQUENCES**

The following is a general discussion of the principal U.S. federal income tax consequences of the acquisition, ownership and disposition of our Common Shares that are generally applicable to a U.S. Holder, as defined below, with respect to shares that a U.S. Holder acquires pursuant to this offering. This summary assumes that the shares are held as capital assets (generally, property held for investment), within the meaning of the U.S. Internal Revenue Code of 1986, as amended, or the Code, in the hands of a U.S. Holder at all relevant times. This discussion is based on the Code, final, temporary and proposed Treasury regulations thereunder, or the Treasury Regulations, pertinent judicial decisions, interpretive rulings of the U.S. Internal Revenue Service, or the IRS, and such other authorities as we have considered relevant. Future legislative, judicial, or administrative modifications, revocations, or interpretations, which may or may not be retroactive, may result in U.S. federal income tax consequences significantly different from those discussed herein. This discussion is not binding on the IRS. No ruling has been or will be sought or obtained from the IRS with respect to any of the U.S. federal tax consequences discussed herein. There can be no assurance that the IRS will not challenge any of the conclusions described herein or that a U.S. court will not sustain such a challenge.

This discussion does not address the U.S. federal income tax consequences to U.S. Holders subject to special rules, including U.S. Holders that (i) are banks, financial institutions, or insurance companies, (ii) are regulated investment companies or real estate investment trusts, (iii) are brokers, dealers, or traders in securities or currencies, (iv) are tax-exempt organizations, (v) are governments or agencies or instrumentalities thereof, (vi) are U.S. expatriates, (vii) elect to mark their securities to market, (viii) hold the shares as part of hedges, straddles, constructive sales, conversion transactions, or other integrated investments, (ix) acquire the shares as compensation for services or through the exercise or cancellation of employee stock options or warrants, (x) have a functional currency other than the U.S. dollar, or (xi) own or have owned directly, indirectly, or constructively, shares of the Company representing 10% or more of the voting power or value of the Company.

In addition, this discussion does not address tax considerations relevant to U.S. Holders under any non-U.S., state or local tax laws, the Medicare tax on net investment income, U.S. federal estate, gift tax, other non-income tax, or the alternative minimum tax. Each U.S. Holder is urged to consult his or its tax advisors regarding the U.S. federal, state, local, and non-U.S. income and other tax considerations of an investment in the shares.

As used herein, "U.S. Holder" means a beneficial owner of common shares that is (i) an individual who is a citizen or resident of the United States for U.S. federal income tax purposes, (ii) a corporation (or other entity taxable as a corporation for U.S. federal tax purposes) created or organized under the laws of the United States, any state thereof, or the District of Columbia, (iii) an estate the income of which is subject to U.S. federal income tax regardless of its source, or (iv) a trust that (a) is subject to the primary supervision of a court within the United States and for which one or more U.S. persons have authority to control all substantial decisions or (b) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.

If a pass-through entity, including a partnership or other entity taxable as a partnership for U.S. federal income tax purposes, holds common shares, the U.S. federal income tax treatment of an owner or partner generally will depend on the status of such owner or partner and on the activities of the pass-through entity. A U.S. person that is an owner or partner of a pass-through entity holding common shares is urged to consult its own tax advisor.

**Distributions on the Shares**

Subject to the PFIC (as defined below) rules discussed below, the gross amount of any distribution paid by us will generally be subject to U.S. federal income tax as foreign source dividend income to the extent paid out of our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Such amount will be includable in gross income by a U.S. Holder as ordinary income on the date that such U.S. Holder actually or constructively receives the distribution in accordance with such holder's regular method of accounting for U.S. federal income tax purposes. The amount of any distribution made by us in property other than cash will be the fair market value (determined in CDN dollars) of such property on the date of the distribution. Because we do not intend to calculate our earnings and profits on the basis of U.S. federal income tax principles, any distribution paid will generally be treated as a dividend for U.S. federal income tax purposes. Dividends paid by us will not be eligible for the dividends received deduction allowed to corporations.

To the extent that a distribution exceeds the amount of our current and accumulated earnings and profits, as determined under U.S. federal income tax principles, such distribution will be treated first as a tax-free return of capital, causing a reduction in a U.S. Holder's adjusted basis in the shares held by such U.S. Holder (thereby increasing the amount of gain, or decreasing the amount of loss, to be recognized by such U.S. Holder upon a subsequent disposition of the shares), with any amount that exceeds such U.S. Holder's adjusted basis being taxed as a capital gain recognized on a sale or exchange (as discussed below).

So long as the shares are listed on the Nasdaq or we are eligible for benefits under the Income Tax Convention between the U.S. and Canada, dividends a U.S. Holder receives from us will be "qualified dividend income" if certain holding period and other requirements (including a requirement that we are not a PFIC in the year of the dividend or the immediately preceding year) are met. Qualified dividend income of an individual or other non-corporate U.S. Holder is subject to a reduced maximum U.S. federal income tax rate.

Subject to certain limitations, Canadian tax withheld with respect to distributions made on the shares may be treated as foreign taxes eligible for credit against a U.S. Holder's U.S. federal income tax liability. Alternatively, a U.S. Holder may, subject to applicable limitations, elect to deduct the otherwise creditable Canadian withholding taxes for U.S. federal income tax purposes. The rules governing the foreign tax credit are complex and involve the application of rules that depend upon a U.S. Holder's particular circumstances. Accordingly, a U.S. Holder is urged to consult its tax advisor regarding the availability of the foreign tax credit under its particular circumstances.

**Sale, Exchange or Other Taxable Disposition of the Shares**

Subject to the PFIC rules discussed below, a U.S. Holder generally will recognize gain or loss upon the taxable sale, exchange or other disposition of the shares in an amount equal to the difference between (i) the U.S. dollar value of the amount realized upon the sale, exchange or other taxable disposition and (ii) such U.S. Holder's adjusted tax basis in the shares. A U.S. Holder's adjusted tax basis in such shares will generally be its U.S. dollar cost. Generally, such gain or loss will be capital gain or loss and will be long-term capital gain or loss if, on the date of the sale, exchange or other taxable disposition, such U.S. Holder has held the shares for more than one year. If such U.S. Holder is an individual or other non-corporate U.S. Holder, long-term capital gains generally will be subject to a reduced maximum U.S. federal income tax rate. The deductibility of capital losses is subject to limitations under the Code. Gain or loss, if any, that a U.S. Holder realizes upon a sale, exchange or other taxable disposition of the shares generally will be treated as having a U.S. source for U.S. foreign tax credit limitation purposes.

**PFIC Rules**

A non-U.S. corporation, such as we will be classified as a passive foreign investment company, or a PFIC, with respect to a U.S. Holder for U.S. federal income tax purposes for a taxable year of a tested foreign corporation, if either (a) 75% or more of our gross income consist of certain types of passive income (which we refer to as the "income test") or (b) 50% or more of the value of our assets either produce passive income or are held for the production of passive income. The value of our assets for this purpose is expected to be based, in part, on the quarterly average of the fair market value of such assets (which we refer to as the "asset test"). "Gross income" generally includes all sales revenues less the cost of goods sold. "Passive income" generally includes, for example, dividends, interest, certain rents and royalties, certain gains from the sale of stock and securities, and certain gains from commodities transactions, but does not include active business gains arising from the sale of certain commodities.

For purposes of the PFIC income test and asset test described above, if we own, directly or indirectly, 25% or more of the total value of the outstanding shares of another corporation, we will be treated as if it (a) held a proportionate share of the assets of such other corporation and (b) received directly a proportionate share of the income of such other corporation. In addition, for purposes of the PFIC income test and asset test described above, and assuming certain other requirements are met, "passive income" does not include certain interest, dividends, rents, or royalties that are received or accrued by us from certain "related persons" (as defined in the Code), to the extent such items are properly allocable to the income of such related person that is not passive income.

Based on the projected composition of our assets and income, we believe that the Company might have constituted a PFIC for the taxable year ending March 31, 2021, were there to have been a U.S. Holder on such date, as a result of the significant gain reported from the sale of land (presumptively a passive asset). However, going forward, we do not anticipate the Company will constitute a PFIC with respect to any U.S. Holder acquiring shares after March 31, 2021. Although we do not anticipate being characterized as a PFIC with respect to U.S. Holders acquiring interests after March 31, 2021, because of (i) the nature of the anticipated income, and (ii) the value of our assets for purposes of the PFIC asset test generally should be determined by reference to the market price of the shares and on that basis will skew distinctly in favor of active income generating assets, it is possible that fluctuations in gain or income, or the market price of assets held may cause us to become a PFIC for the current or any subsequent taxable year. The determination of whether we will become a PFIC will depend, in part, on the composition of its income and assets, which will be affected by how, and how quickly, we us our liquid assets and cash raised in any offerings. Whether we are a PFIC is a factual determination, and we must make a separate determination each taxable year as to whether the Company is a PFIC (after the close of each taxable year). Accordingly, we cannot assure holders that we will not be a PFIC during the current and any future taxable year. If we are classified as a PFIC for any taxable year during which a U.S. Holder holds shares, we will continue to be treated as a PFIC, unless the U.S. Holder makes certain elections, for all succeeding years, even if we cease to qualify as a PFIC under the rules set forth above.

If we are considered a PFIC at any time that a U.S. Holder holds shares, any gain recognized by the U.S. Holder on a sale or other disposition of the shares, as well as the amount of any "excess distribution" (defined below) received by the U.S. Holder, would be allocated ratably over the U.S. Holder's holding period for the shares. The amounts allocated to the taxable year of the sale or other disposition (or the taxable year of receipt, in the case of an excess distribution) and to any year before we became a PFIC would be taxed as ordinary income. The amount allocated to each other taxable year would be subject to tax at the highest rate in effect for individuals or corporations, as appropriate, for that taxable year, and an interest charge would be imposed. For the purposes of these rules, an excess distribution is the amount by which any distribution received by a U.S. Holder on shares exceeds 125% of the average of the annual distributions on the shares received during the preceding three years or the U.S. Holder's holding period, whichever is shorter. Certain elections may be available that would result in alternative treatments (such as mark-to-market treatment or a "qualified electing fund" election) of the shares if we are considered a PFIC. However, we do not intend to provide information necessary for U.S. Holders to make qualified electing fund elections which, if available, would result in tax treatment different from the general tax treatment for PFICs described above.

If a U.S. Holder holds shares during any taxable year that we are a PFIC, such holder generally must annually file Form 8621, "Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund", with the IRS.

Holders are urged to consult their tax advisor concerning the U.S. federal income tax consequences of purchasing, holding, and disposing shares if we are or become a PFIC, including the possibility of making any election that may be available under the PFIC rules (including a mark-to-market election), which may mitigate the adverse U.S. federal income tax consequences of holding shares of a PFIC.

**Receipt of Foreign Currency**

The U.S. dollar value of any cash distribution made in Canadian dollars to a U.S. Holder will be calculated by reference to the exchange rate prevailing on the date of actual or constructive receipt of the distribution, regardless of whether the Canadian dollars are converted into U.S. dollars at that time. For U.S. Holders following the accrual method of accounting, the amount realized on a disposition of the shares for an amount in Canadian dollars will be the U.S. dollar value of this amount on the date of disposition. On the settlement date, such U.S. Holder will recognize U.S. source foreign currency gain or loss (taxable as ordinary income or loss) equal to the difference (if any) between the U.S. dollar value of the amount received based on the exchange rates in effect on the date of sale or other disposition and the settlement date. However, in the case of shares traded on an established securities market that are sold by a cash method U.S. Holder (or an accrual method U.S. Holder that so elects), the amount realized will be based on the spot rate in effect on the settlement date for the disposition, and no exchange gain or loss will be recognized at that time. A U.S. Holder will generally have a basis in Canadian dollars equal to their U.S. dollar value on the date of receipt of such distribution, on the date of disposition, or, in the case of cash method U.S. Holders (and accrual method U.S. Holders that so elects), on the date of settlement. Any U.S. Holder that receives payment in Canadian dollars and converts or disposes of the Canadian dollars after the date of receipt may have a foreign currency exchange gain or loss that would be treated as ordinary income or loss and that generally will be U.S. source income or loss for foreign tax credit purposes. U.S. Holders are urged to consult their own U.S. tax advisors regarding the U.S. federal income tax consequences of receiving, owning, and disposing of Canadian dollars.

**Information with Respect to Foreign Financial Assets**

Individuals and certain entities that own "specified foreign financial assets", with an aggregate value in excess of $50,000 (and in some circumstances, a higher threshold) are generally required to file an information report on IRS Form 8938, Statement of Specified Foreign Financial Assets, with respect to such assets with their tax returns for each year in which they hold shares. "Specified foreign financial assets" include any financial accounts maintained by certain foreign financial institutions, as well as securities issued by non-U.S. persons if they are not held in accounts maintained by financial institutions. U.S. Holders are urged to consult their tax advisors regarding the application of this reporting requirement to their ownership of the shares.

**Information Reporting and Backup Withholding**

In general, information reporting will apply to dividends paid to a U.S. Holder in respect of the shares and the proceeds received by such U.S. Holder from the sale, exchange or other disposition of the shares within the United States unless such U.S. Holder is a corporation or other exempt recipient. Backup withholding may apply to such payments if a U.S. Holder fails to provide a taxpayer identification number or certification of exempt status or fails to report dividend and interest income in full. Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules will be allowed as a refund or credit against a U.S. Holder's U.S. federal income tax liability, provided that the required information is timely furnished to the IRS.

**MATERIAL CANADIAN FEDERAL INCOME TAX CONSIDERATIONS**

The following is, as of the date hereof, a summary of the material Canadian federal income tax considerations generally applicable under the Income Tax Act (Canada) and the regulations promulgated thereunder, collectively the "Tax Act", to a purchaser who acquires as beneficial owner common shares under this offering, and who, for purposes of the Tax Act and at all relevant times, (i) is not, and is not deemed to be, resident in Canada for purposes of the Tax Act and any applicable income tax convention, (ii) holds the common shares as capital property, (iii) deals at arm's length with, and is not affiliated with, the Company or the underwriters, and (iv) does not use or hold and will not be deemed to use or hold, the common shares in a business carried on in Canada, hereinafter, a "Non-Resident Holder." Special rules, which are not discussed in this summary, may apply to a Non-Resident Holder that is an "authorized foreign bank" within the meaning of the Tax Act or an insurer carrying on an insurance business in Canada and elsewhere. Any such Non-Resident Holder should consult its own tax advisor.

This summary is based upon the provisions of the Tax Act in force as of the date hereof , all specific proposals to amend the Tax Act that have been publicly announced in writing by or on behalf of the Minister of Finance (Canada) prior to the date hereof, or the "Proposed Amendments," the Canada-United States Tax Convention (1980), or the "Treaty", and an understanding of the current administrative policies and assessing practices of the Canada Revenue Agency, or the CRA, published in writing by it prior to the date hereof. This summary assumes the Proposed Amendments will be enacted in the form proposed. However, no assurance can be given that the Proposed Amendments will be enacted in their current form, or at all. This summary is not exhaustive of all possible Canadian federal income tax considerations and, except for the Proposed Amendments, does not take into account or anticipate any changes in the law or any changes in the CRA's administrative policies or assessing practices, whether by legislative, governmental or judicial action or decision, nor does it take into account or anticipate any other federal or any provincial, territorial or foreign tax considerations, which may differ significantly from those discussed herein.

**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 prospective purchaser or holder of the common shares, and no representations with respect to the income tax consequences to any prospective purchaser or holder are made. Consequently, prospective purchasers or holders of the common shares should consult their own tax advisors with respect to their particular circumstances.**

**Currency Conversion**

Generally, for purposes of the Tax Act, all amounts relating to the acquisition, holding or disposition of the common shares must be converted into Canadian dollars based on the exchange rates as determined in accordance with the Tax Act.

**Dividends**

Dividends paid or credited or deemed to be paid or credited on the common shares to a Non-Resident Holder by the Company will be subject to Canadian withholding tax under the Tax Act at the rate of 25%, subject to any reduction under the provisions of an applicable income tax convention. For example, under the Treaty, the rate of withholding tax on dividends paid or credited or deemed to be paid or credited to a beneficially entitled Non-Resident Holder who is resident in the U.S. for purposes of the Treaty and who is fully entitled to the benefits of the Treaty is generally limited to 15% of the gross amount of the dividend. Non-Resident Holders are urged to consult their own tax advisors to determine their entitlement to relief under an applicable income tax treaty.

**Dispositions**

A Non-Resident Holder generally will not be subject to tax under the Tax Act in respect of a capital gain realized on the disposition or deemed disposition of a common share, unless the common share constitutes "taxable Canadian property" (as defined in the Tax Act) of the Non-Resident Holder at the time of disposition and the Non-Resident Holder is not entitled to relief under an applicable income tax convention.

Generally, the common shares will not constitute taxable Canadian property of a Non-Resident Holder at a particular time provided the common shares are listed at that time on a "designated stock exchange," as defined in the Tax Act (which currently includes Nasdaq), unless at any time during the 60-month period that ends at that time the following two conditions are satisfied concurrently: (i) (a) the Non-Resident Holder; (b) persons with whom the Non-Resident Holder did not deal at arm's length; (c) partnerships in which the Non-Resident Holder or a person described in (b) holds a membership interest directly or indirectly through one or more partnerships; or (d) any combination of the persons and partnerships described in (a) through (c), owned 25% or more of the issued shares of any class or series of the shares of the company; and (ii) more than 50% of the fair market value of the common shares was derived directly or indirectly from one or any combination of: (a) real or immovable property situated in Canada, (b) "Canadian resource properties," (c) "timber resource properties" (each as defined in the Tax Act), and (d) options in respect of, or interests in or for civil law rights in, such properties, whether or not such properties exist. Notwithstanding the foregoing, in certain circumstances set out in the Tax Act, the common shares could be deemed to be taxable Canadian property.

**A Non-Resident Holder contemplating a disposition of common shares that may constitute taxable Canadian property should consult a tax advisor prior to such disposition.**

**UNDERWRITING**

Subject to the terms and conditions set forth in the underwriting agreement between us and the underwriters named below, for which Spartan Capital Securities, LLC, is acting as the representative, (the "Representative"), we have agreed to sell to the underwriters, and each underwriter has severally agreed to purchase, the number of our Common Shares listed next to its name in the following table:

---

| | |
|:---|:---|
| **Name of Underwriter** | **Number of<br> Common Shares** |
| Spartan Capital Securities, LLC |  |
| **Total** |  |

---

Under the terms of the underwriting agreement, the underwriters are committed to purchase all of the shares offered by this prospectus (other than the shares subject to the underwriters' option to purchase additional shares to cover overallotments, if any), if the underwriters buy any of such shares. The underwriters' obligation to purchase the shares is subject to satisfaction of certain conditions, including, among others, the continued accuracy of representations and warranties made by us in the underwriting agreement, delivery of legal opinions and the absence of any material changes in our assets, business or prospects after the date of this prospectus.

The underwriters initially propose to offer our Common Shares directly to the public at the public offering price set forth on the front cover page of this prospectus. After the initial public offering of our Common Shares, the offering price and other selling terms may be changed by the underwriters.

**Over-Allotment Option** 

We have granted to the underwriters an option to purchase up to 15% additional our Common Shares or Common Shares, at the same price per share as they are paying for the shares shown in the table above. The underwriters may exercise this option in whole or in part at any time within 45 days after the closing of this offering. To the extent the underwriters exercise this option, each underwriter will be committed, so long as the conditions of the underwriting agreement are satisfied, to purchase a number of additional shares proportionate to that underwriters' initial commitment as indicated in the table at the beginning of this section plus, in the event that any underwriter defaults in its obligation to purchase shares under the underwriting agreement, certain additional shares.

**Discounts and Commissions**

The following table shows the per share and total underwriting discounts and commissions we will pay to the underwriters. These amounts are shown assuming both no exercise and full exercise of the underwriters' option to purchase additional shares of our Common Shares.

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| | | | |
|:---|:---|:---|:---|
|  | | **Total** | **Total** |
|  |<br>**Per Share** | **No<br> Exercise** | **Full<br> Exercise** |
| Public offering price | $| $| $|
| Underwriting discount to be paid by us<sup>(1)</sup> | $| $| $|
| Proceeds, before expenses, to us | $| $| $|

---

(1) The underwriters will receive an underwriting discount equal to eight percent
(8.0%) on all shares sold by the underwriters in this offering. In the case proceeds from the sale of our Common Shares are received from
Company-originated investors, the underwriting discount will equal four percent (4.0%).

We have agreed to reimburse the representative of the underwriters out of the proceeds of the offering for non-accountable expenses up to the amount of $50,000 and to reimburse the representative for accountable legal expenses incurred by the representative in connection with the offering, up to $150,000 for fees and expenses of the representative's legal counsel and other out-of-pocket expenses, and, if applicable, additional amounts to cover costs associated with the use of a third-party electronic road show service. We have paid an expense advance of $10,000, to the Representative, which will be applied against the actual accountable expenses that will be payable by us to the Representative in connection with this offering and any portion of the advance will be returned back to the Company to the extent not actually incurred.

We estimate that the total expenses of the offering payable by us, excluding underwriting discounts and commissions, will be approximately $.

**Representative's Warrant** 

We have agreed to issue the Representative's Warrant to the representative to purchase up to an aggregate of eight percent (8.0%) of the shares of Common Shares sold in this offering. The Representative's Warrant is exercisable commencing 180 days after the effective date of the registration statement of which this prospectus forms a part at $ per share (110% of the public offering price), but may not be transferred at any time prior to the date which is 180 days after commencement of the sales by us of our Common Shares. The Representative's Warrant will expire on a date which is three (3) years from the date of the commencement of the sale of our Common Shares in this offering in compliance with FINRA Rule 5110(e)(1)(A). The Representative's Warrant has been deemed compensation by FINRA and is therefore subject to a 180-day lock-up pursuant to FINRA Rule 5110(e). The Representative (or its respective permitted assignees under Rule 5110(e)(2)(B)) will not sell, transfer, assign, pledge, or hypothecate the Representative's Warrant or the securities underlying such warrant, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of such warrant or the underlying securities for a period of 180 days following the date of commencement of sales pursuant to this offering. In addition, the Representative's Warrant provides for a cashless exercise and "piggy-back" registration rights with respect to the shares underlying such warrants, exercisable in certain cases for a period of no more than seven (7) years from the effective date of this offering in compliance with FINRA Rule 5110(g)(8)(D). We will bear all fees and expenses attendant to the "piggy-back" registration of the securities issuable on exercise of the Representative's Warrant other than underwriting commissions incurred and payable by the holders thereof. The exercise price and number of shares issuable upon exercise of the Representative's Warrant may be adjusted in certain circumstances including in the event of a stock dividend, extraordinary cash dividend or our recapitalization, reorganization, merger or consolidation. The Representative's Warrant and the shares underlying the Representative's Warrant are being registered for sale on the registration statement of which this prospectus forms a part.

**Tail Financing**

If, during the 18-month period following the expiration or termination of the Representative's engagement, we consummate a financing with investors with whom the Representative had contacted or introduced to us during the period in which we engaged the Representative, we will pay the Representative a fee equal to eight percent (8.0%) of the proceeds of such financing and warrants to purchase a number of shares of our Common Shares equal to five percent (5.0%) of the aggregate number of shares of our Common Shares sold in such offering at an exercise price equal to 110% of the offering price of the shares of our Common Shares sold in such offering.

**Right of First Refusal**

Until 12 months from the closing date of this offering, if we or any of our subsidiaries (a) decide to dispose of or acquire business units or acquire any of our outstanding securities or make any exchange or tender offer or enter into a merger, consolidation or other business combination or any recapitalization, reorganization, restructuring or other similar transaction, including, without limitation, an extraordinary dividend or distributions or a spin-off or split-off, and we decide to retain a financial advisor for such transaction, the Representative shall have the right to act as our exclusive financial advisors for any such transaction; or (b) decide to finance or refinance any indebtedness using a manager or agent, the Representative shall have the right to act as joint bookrunners, joint managers, joint placement agents or joint agents with respect to such financing or refinancing; or (c) decide to raise funds by means of a public offering (including at-the-market facility) or a private placement or any other capital-raising financing of equity, equity-linked or debt securities using an underwriter or placement agent, the Representative shall have the right to act as joint book-running managers, joint underwriters or joint placement agent for such financing, in any event on terms and conditions customary for such transactions of a similar size and nature.

**Indemnification** 

We have agreed to indemnify the underwriters against specified liabilities, including liabilities under the Securities Act, and to contribute to payments the underwriters may be required to make in respect thereof.

**Lock-Up Agreements** 

The Company, on behalf of itself and any successor entity, agrees that, without the prior written consent of the Representative, it will not, for a period of 180 days after the date of the offering, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company, or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (ii) file or caused to be filed any registration statement with the SEC relating to the offering of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (iii) complete any offering of debt securities of the Company, other than entering into a line of credit with a traditional bank; or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of capital stock of the Company, whether any such transaction described in clause (i), (ii), (iii) or (iv) above is to be settled by delivery of shares of capital stock of the Company or such other securities in cash or otherwise.

Our directors, executive officers and the holders of substantially all of our equity securities have agreed, subject to certain exceptions, with the underwriters that for a period of 180 days, after the date of this prospectus, we or they will not, except with the prior written consent of the Representative, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to sale of or otherwise dispose of or transfer any shares of our Common Shares or any securities convertible into or exercisable or exchangeable for shares of our Common Shares, request or demand that we file a registration statement related to our Common Shares, or enter into any swap or other agreement that transfers to another, in whole or in part, directly or indirectly, the economic consequence of ownership of the Common Shares. All of our option holders and warrant holders are subject to a market stand-off agreement with us which imposes similar restrictions.

The representative may in its sole discretion and at any time without notice release some or all of the shares subject to lock-up agreements prior to the expiration of the lock-up period. When determining whether or not to release shares from the lock-up agreements, the representative will consider, among other factors, the security holder's reasons for requesting the release, the number of shares for which the release is being requested and market conditions at the time.

**Stabilization** 

Short positions involve sales by the underwriters of shares in excess of the number of shares the underwriters are obligated to purchase, which creates a syndicate short position. The short position may be either a covered short position or a naked short position. In a covered short position, the number of shares involved in the sales made by the underwriters in excess of the number of shares they are obligated to purchase is not greater than the number of shares that they may purchase by exercising their option to purchase additional shares. In a naked short position, the number of shares involved is greater than the number of shares in their option to purchase additional shares. The underwriters may close out any short position by either exercising their option to purchase additional shares or purchasing shares in the open market.

&nbsp;&nbsp;&nbsp;&nbsp;· Stabilizing
 transactions permit bids to purchase the underlying security as long as the stabilizing bids
 do not exceed a specific maximum price.

&nbsp;&nbsp;&nbsp;&nbsp;· Syndicate
 covering transactions involve purchases of our Common Shares in the open market after the
 distribution has been completed to cover syndicate short positions. In determining the source
 of shares to close out the short position, the underwriters will consider, among other things,
 the price of shares available for purchase in the open market as compared to the price at
 which they may purchase shares through the underwriters' option to purchase additional
 shares. If the underwriters sell more shares than could be covered by the underwriters'
 option to purchase additional shares, thereby creating a naked short position, the position
 can only be closed out by buying shares in the open market. A naked short position is more
 likely to be created if the underwriters are concerned that there could be downward pressure
 on the price of the shares in the open market after pricing that could adversely affect investors
 who purchase in the offering.

&nbsp;&nbsp;&nbsp;&nbsp;· Penalty
 bids permit the representative to reclaim a selling concession from a syndicate member when
 the Common Shares originally sold by the syndicate member is purchased in a stabilizing or
 syndicate covering transaction to cover syndicate short positions.

&nbsp;&nbsp;&nbsp;&nbsp;· In
 passive market making, market makers in our Common Shares who are underwriters or prospective
 underwriters may, subject to limitations, make bids for or purchase shares of our Common
 Shares until the time, if any, at which a stabilizing bid is made.

These activities may have the effect of raising or maintaining the market price of our Common Shares or preventing or retarding a decline in the market price of our Common Shares. As a result of these activities, the price of our Common Shares may be higher than the price that might otherwise exist in the open market. These transactions may be effected on Nasdaq or otherwise and, if commenced, may be discontinued at any time.

Neither we nor any of the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of our Common Shares. In addition, neither we nor any of the underwriters make any representation that the representative will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued without notice.

**Initial Public Offering Pricing**

Prior to the completion of this offering, there has been no public market for our Common Shares. The initial public offering price has been negotiated between us and the representative.

**Other Relationships**

The Representative and its affiliates may provide various advisory, investment and commercial banking and other services to us in the ordinary course of business, for which they may receive customary fees and commissions.

The Representative may in the future provide us and our affiliates with investment banking and financial advisory services for which it may in the future receive customary fees. See "*Underwriting-Tail Financing*," above. The Representative may release, or authorize us to release, as the case may be, the Common Shares subject to the lock-up agreements described above in whole or in part at any time with or without notice.

**Electronic Distribution** 

A prospectus in electronic format may be made available on the websites maintained by one or more of the underwriters or selling group members, if any, participating in the offering. The representative may allocate a number of shares to the underwriters and selling group members, if any, for sale to their online brokerage account holders. Any such allocations for online distributions will be made by the representative on the same basis as other allocations.

**Application for Nasdaq Capital Market** 

We have applied to list our Common Shares on The Nasdaq Capital Market under the reserved symbol "ADVI." We will not consummate and close this offering without a listing approval letter from Nasdaq. If we are unable to obtain a listing on Nasdaq, we will not close this offering. If our Common Shares are listed on Nasdaq, we will be subject to continued listing requirements and corporate governance standards. We expect these new rules and regulations to significantly increase our legal, accounting and financial compliance costs.

**Selling Restrictions** 

Other than in the United States, no action has been taken by us or the underwriters that would permit a public offering of the securities offered by this prospectus in any jurisdiction where action for that purpose is required. The securities offered by this prospectus may not be offered or sold, directly or indirectly, nor may this prospectus or any other offering material or advertisements in connection with the offer and sale of any such securities be distributed or published in any jurisdiction, except under circumstances that will result in compliance with the applicable rules and regulations of that jurisdiction. Persons into whose possession this prospectus comes are advised to inform themselves about and to observe any restrictions relating to the offering and the distribution of this prospectus. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any securities offered by this prospectus in any jurisdiction in which such an offer or a solicitation is unlawful.

**Canada**

The common shares offered by this prospectus have not been qualified by prospectus for distribution in Canada, and may not be, directly or indirectly, offered or sold in Canada or to any residents of Canada, except in compliance with an exemption from Canadian prospectus requirements. Any sales of our Common Shares in any province or territory of Canada will only be made by a securities dealer appropriately registered in that province or territory to make such sales, which may include a Canadian affiliate of one of the underwriters using a separate Canadian Offering Memorandum that will include a copy of this prospectus. Any common shares acquired may not be sold in Canada, except in compliance with Canadian prospectus requirements or an exemption therefrom.

Neither this prospectus nor the registration statement of which this prospectus forms a part is a prospectus under the laws of any Canadian province or territory. Accordingly, none of the securities qualified for sale by this prospectus are qualified for public sale in Canadian province or territory. The securities may be sold in Canada in limited circumstances only to purchasers purchasing, or deemed to be purchasing, as principal that are "accredited investors," as defined in National Instrument 45-106 Prospectus Exemptions or subsection 73.3(1) of the Securities Act (Ontario).

The Company is not a "reporting issuer" under the securities laws of any Canadian province or territory and will not become a "reporting issuer" in Canada as a result of the effectiveness of the registration statement of which this prospectus forms a part. As the Company is not a "reporting issuer" in Canada and has no obligation to become a "reporting issuer" in any jurisdiction in Canada, Canadian investors will not be able to resell their shares publicly in Canada. Accordingly, any resale of the securities by Canadian shareholders of the Company must be made in accordance with an exemption from, or in a transaction not subject to, the prospectus requirements of applicable Canadian securities laws. Notwithstanding that Canadian investor may purchase the securities pursuant to an available prospectus exemption, there is no assurance that a further exemption from Canadian prospectus requirements will be available to enable a Canadian purchaser to resell the securities acquired. Further, hold periods and manner of sale requirements may be imposed on Canadian purchasers in limited circumstances where exemptions may be available. Accordingly, any Canadian purchaser should consult with a legal advisor to ascertain the restrictions on resale that will be applicable them under the laws of their local jurisdiction.

Securities legislation in certain provinces or territories of Canada may provide a purchaser with remedies for rescission or damages if this prospectus (including any amendment thereto) contains a misrepresentation, provided that the remedies for rescission or damages are exercised by the purchaser within the time limit prescribed by the securities legislation of the purchaser's province or territory. The purchaser should refer to any applicable provisions of the securities legislation of the purchaser's province or territory for particulars of these rights or consult with a legal advisor.

**EXPENSES RELATED TO THIS OFFERING**

The following table indicates the expenses to be incurred in connection with the offering described in this registration statement, other than underwriting discounts and commissions, all of which will be paid by us. All amounts are estimated except the Securities and Exchange Commission registration fee and the Financial Industry Regulatory Authority, Inc., or FINRA, filing fee.

---

| | |
|:---|:---|
|  | **Amount** |
| SEC registration fee | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; |
| FINRA filing fee | \* |
| Nasdaq listing fee | \* |
| Accountants' fees and expenses | \* |
| Legal fees and expenses | \* |
| Printing and engraving expenses | \* |
| Transfer agent fees and expenses | \* |
| Miscellaneous | \* |
| **Total** | $\* |

---

\* To be completed by amendment

Each of the amounts set forth above, other than the SEC registration fee and FINRA filing fee, is an estimate.

**EXPERTS**

The consolidated financial statements as of December 31, 2021 and 2020, and for the years then ended included in this prospectus have been audited by RBSM LLP, an independent registered public accounting firm, as stated in their report appearing herein. Such financial statements are included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing. The office of RBSM LLP is located at 805 Third Avenue, Suite 1430, New York, NY 10022.

**LEGAL MATTERS**

We are being represented by Carmel, Milazzo & Feil LLP with respect to legal matters of United States federal securities law. The validity of the Common Shares offered by this prospectus and legal matters as to Canadian laws will be passed upon for us by McMillan LLP. Carmel, Milazzo & Feil LLP may rely upon McMillan LLP with respect to all matters governed by Canadian laws. The Representative is being represented by Lucosky Brookman LLP with respect to certain legal matters as to United States federal securities law.

**ENFORCEABILITY OF CIVIL LIABILITIES**

We are a corporation organized under the laws of Alberta, Canada and a majority of our directors and certain of our officers, as well as the Canadian independent registered chartered accountants named in the "Experts" section of this prospectus, reside outside of the United States. Service of process upon such persons may be difficult or impossible to effect within the United States. Furthermore, because a substantial portion of our assets, and substantially all the assets of our non-U.S. directors and officers and the Canadian experts named herein, are located outside of the United States, any judgment obtained in the United States, including a judgment based upon the civil liability provisions of U.S. federal securities laws, against us or any of such persons may not be collectible within the United States.

In addition, there is doubt as to the applicability of the civil liability provisions of U.S. federal securities law to original actions instituted in Canada. It may be difficult for an investor, or any other person or entity, to assert U.S. securities laws claims in original actions instituted in Canada. However, subject to certain time limitations, a foreign civil judgment, including a U.S. court judgment based upon the civil liability provisions of U.S. federal securities laws, may be enforced by a Canadian court, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;· the
 judgment is enforceable in the jurisdiction in which it was given;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 judgment was obtained after due process before a court of competent jurisdiction that recognizes
 and enforces similar judgments of Canadian courts, and the court had authority according
 to the rules of private international law currently prevailing in Canada;

&nbsp;&nbsp;&nbsp;&nbsp;· adequate
 service of process was effected and the defendant had a reasonable opportunity to be heard;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 judgment is not contrary to the law, public policy, security or sovereignty of Canada and
 its enforcement is not contrary to the laws governing enforcement of judgments;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 judgment was not obtained by fraud and does not conflict with any other valid judgment in
 the same matter between the same parties;

&nbsp;&nbsp;&nbsp;&nbsp;· the
 judgment is no longer appealable; and

&nbsp;&nbsp;&nbsp;&nbsp;· an
 action between the same parties in the same matter is not pending in any Canadian court at
 the time the lawsuit is instituted in the foreign court.

Foreign judgments enforced by Canadian courts generally will be payable in Canadian dollars. The usual practice in an action before a Canadian court to recover an amount in a non-Canadian currency is for the Canadian court to render judgment for the equivalent amount in Canadian currency.

**WHERE YOU CAN FIND ADDITIONAL INFORMATION**

We have filed with the SEC a registration statement on Form F-1 under the Securities Act, including amendments and relevant exhibits and schedules, covering Common Shares to be sold in this offering. This prospectus, which constitutes a part of the registration statement on Form F-1, summarizes material provisions of contracts and other documents included in the Registration Statement. Since this prospectus does not contain all of the information contained in the registration statement on Form F-1, you should read the registration statement on Form F-1 and its exhibits and schedules for further information with respect to us and our securities.

Immediately upon the effectiveness of the registration statement on Form F-1 of which this prospectus forms a part, we will become subject to periodic reporting and other informational requirements of the Exchange Act as applicable to foreign private issuers. Accordingly, we will be required to file reports, including annual reports on Form 20-F, and other information with the SEC. All information filed with the SEC can be obtained over the internet at the SEC's website at *www.sec.gov* or inspected and copied at the public reference facilities maintained by the SEC at 100 F Street, N.E., Washington, D.C. 20549. You can request copies of documents, upon payment of a duplicating fee, by writing to the SEC.

As a foreign private issuer, we are exempt under the Exchange Act from, among other things, the rules prescribing the furnishing and content of proxy statements, and our executive officers, directors and principal shareholders are exempt from the reporting and short-swing profit recovery provisions contained in Section 16 of the Exchange Act. In addition, we will not be required under the Exchange Act to file periodic reports and financial statements with the SEC as frequently or as promptly as U.S. companies whose securities are registered under the Exchange Act.

We maintain a corporate website at *www.adveninc.com*. Information contained on, or that can be accessed through, our website does not constitute a part of this prospectus or the registration statement of which it forms a part. We have included our website address in this prospectus solely as an inactive textual reference. We will post on our website any materials required to be so posted on such website under applicable corporate or securities laws and regulations, including, posting any XBRL interactive financial data required to be filed with the SEC and any notices of general meetings of our shareholders.

**ADVEN INC.** 

**Audited Financial Statements for Fiscal Years ended December 31, 2021 and 2020**

**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**

---

| | |
|:---|:---|
|  | PAGE |
| [Report of Independent Registered Public Accounting Firm](#a_024) | [F-2](#a_024) |
| [Consolidated Statements of Financial Position](#a_025) | [F-3](#a_025) |
| [Consolidated Statements of Loss and Comprehensive Loss](#a_026) | [F-4](#a_026) |
| [Consolidated Statements of Shareholders' Equity](#a_027) | [F-5](#a_027) |
| [Consolidated Statements of Cash Flows](#a_028) | [F-6](#a_028) |
| [Notes To Consolidated Financial Statements](#a_029) | [F-7](#a_029) |

---

**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

The Shareholders and the Board of Directors of

AdvEn Inc. (formerly Nano Innovations Inc.)

**Opinion on the Financial Statements**

We have audited the accompanying consolidated statements of financial position of AdvEn Inc., formerly Nano Innovations Inc., (the "Company") as of December 31, 2021 and 2020, and the related consolidated statements of loss, comprehensive loss, shareholders' equity and cash flows for each of the two years in the period ended December 31, 2021 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, 2021 and 2020 and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2021, in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board.

**The Company's Ability to Continue as a Going Concern** 

The accompanying consolidated financial statements have been prepared assuming that the company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the company has suffered recurring losses from operations, will require additional capital to fund its current operating plan, and has stated that substantial doubt exists about the company's ability to continue as a going concern. Management's plans regarding these matters are also described in Note 2. The consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.

**Basis for Opinion** 

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

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the 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 financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

*/s/ RBSM LLP*

We have served as the company's auditor since 2022

PCAOB ID 587

New York, NY

October 25, 2022

**ADVEN INC.** 

**CONSOLIDATED STATEMENTS OF FINANCIAL POSITION**

**(IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| **ASSETS** |  |  |
| ***Current assets*** |  |  |
| Cash and cash equivalents | $**2720224** | $9135 |
| Accounts receivable *(note 6)* | **385938** | 2030911 |
| Investment tax credits recoverable | **1027544** | 200851 |
| Prepaid expenses | **115063** | 98688 |
| **Total current assets** | **4248769** | 2339585 |
| Right of use assets *(note 7)* | **1760030** | 50052 |
| Property, plant, and equipment *(note 8)* | **4992508** | 350510 |
| **Total assets** | $**11001307** | $2740147 |
| **LIABILITIES** |  |  |
| ***Current liabilities*** |  |  |
| Accounts payable *(note 9)* | $**1834283** | $339542 |
| Lease liabilities *(note 10)* | **43701** | 37707 |
| Due to shareholders *(note 11)* | **-** | 86957 |
| Related party promissory notes payable *(note 12)* | **480300** | 600000 |
| Current portion of deferred government grants *(note 14)* | **366594** |  |
| Notes *(note 13)* | **3218842** | - |
| **Total current liabilities** | **5943720** | 1064206 |
| Lease liabilities *(note 10)* | **1764636** | 25344 |
| Deferred government grants *(note 14)* | **2510159** | - |
| **Total liabilities** | **10218515** | 1089550 |
| **SHAREHOLDERS' EQUITY** |  |  |
| Share capital *(note 16)* | **7249961** | 6424190 |
| Contributed surplus | **3494005** | 1966578 |
| Accumulated deficit | **(9961174)** | (6740171) |
| **Total shareholders' equity** | **782792** | 1650597 |
| **Total liabilities and shareholders' equity** | $**11001307** | $2740147 |

---

Approved on behalf of the Board of Directors:

---

| | |
|:---|:---|
| */s/ Dr. Yanguang Yuan* | */s/ Dr. Grzegorz Ombach* |
| Director | Chairman |

---

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

 

 

**ADVEN INC.** 

**CONSOLIDATED STATEMENTS OF LOSS AND COMPREHENSIVE LOSS** 

**(IN CANADIAN DOLLARS)** 

---

| | | |
|:---|:---|:---|
| **For the years ending December 31,** | **2021** | **2020** |
| **Expenses:** |  |  |
| Stock based compensation | **1527427** |  |
| Bad debt expense *(note 23c)* | **553299** |  |
| Legal fees | **454384** | 8892 |
| Consulting fees | **352733** |  |
| Research and development *(note 17)* | **243299** | 554281 |
| Depreciation: |  |  |
| &nbsp;&nbsp;&nbsp;Right of use assets | **179060** | 74087 |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | **172068** | 113313 |
| Accounting and audit fees | **78379** | 49176 |
| General and administration | **41663** | 13788 |
| Sales and marketing | **28058** | 14835 |
| Insurance | **16591** | 8541 |
| **Loss from operations** | **(3646959)** | (836913) |
| **Other items:** |  |  |
| Finance expenses *(note 18)* | **295134** | 39795 |
| Loss on foreign exchange | **81073** | 7894 |
| Change in fair value | **2613** |  |
| Government grants *(note 14)* | **(716593)** |  |
| Government subsidies *(note 15)* | **(88184)** | (12376) |
| **Total loss and comprehensive loss** | $**(3221003)** | $**(872225)** |
| **Net loss per share** |  |  |
| Basic and diluted loss per share *(note 21)* | $**(0.13)** | $(0.04) |

---

 

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

**ADVEN INC.** 

**CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY** 

**(IN CANADIAN DOLLARS)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Common Shares** | **Share capital**<br> *(note 16)*** | **Contributed<br> surplus** | **Accumulated<br> deficit** | **Total equity** |
| Balance as at January 1, 2020 | 19891413 | $4127100 | $1966578 | $(5867946) | $225732 |
| Comprehensive loss |  |  |  | (872225) | (872225) |
| Issuance of shares | 3871275 | 2297090 | - | - | 2297090 |
| **Balance as at December 31, 2020** | 23762688 | $6424190 | $1966578 | $(6740171) | $1650597 |
| Stock based compensation |  | **-** | **1527427** | **-** | **1527427** |
| Comprehensive loss |  | **-** | **-** | **(3221003)** | **(3221003)** |
| Issuance of shares | **2237312** | **173571** | **-** | **-** | **173571** |
| Share exchange *(note 5)* | **6750000** | **652200** | **-** | **-** | **652200** |
| **Balance as at December 31, 2021** | **32750000** | $**7249961** | $**3494005** | $**(9961174)** | $**782792** |

---

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

 

**ADVEN INC.** 

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(IN CANADIAN DOLLARS)**

---

| | | |
|:---|:---|:---|
| For the years ending December 31, | **2021** | **2020** |
| **Operating activities** |  |  |
| Net loss | $**(3221003)** | $(872225) |
| Adjusted for the following: |  |  |
| Depreciation: |  |  |
| &nbsp;&nbsp;&nbsp;Property, plant and equipment | **172068** | 113313 |
| &nbsp;&nbsp;&nbsp;Right of use assets | **179059** | 74087 |
| Accretion | **15435** |  |
| Amortization of deferred financing fees | **9953** |  |
| Loss on foreign exchange | **81073** | 7894 |
| Change in fair value | **2613** |  |
| Stock based compensation | **1527427** |  |
| Change in non-cash working capital *(note 22)* | **2356253** | 118813 |
| **Cash used in operating activities** | **1122878** | (558118) |
| **Financing activities** |  |  |
| Lease payments | **(143753)** | (70584) |
| Proceeds from issuance of common shares | **2170661** | 300001 |
| Proceeds (repayment) from related party promissory notes | **(119700)** | 550000 |
| **Cash (used in) provided by financing activities** | **1907208** | 779417 |
| **Investing activities** |  |  |
| Purchase of property, plant and equipment | **(4814066)** | (259750) |
| Reverse merger *(note 5)* | **3730009** |  |
| Change in non-cash working capital *(note 22)* | **765060** | - |
| **Cash used in investing activities** | **(318997)** | (259750) |
| Net change in cash and cash equivalents | **2711089** | (38451) |
| Cash and cash equivalents, beginning of the year | **9135** | 47586 |
| **Cash and cash equivalents, end of the year** | $**2720224** | $9135 |

---

 

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

 

**ADVEN INC.** 

**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**

**NOTE 1 – REPORTING ENTITY**

AdvEn Industries Inc. ("AdvEn") is engaged in research, development and commercialization of ASAC and in dry ESAC for use in batteries, supercapacitors, filtration systems and other industrial and commercial applications with improved technical performance to the other products currently available on the global market.

AdvEn was incorporated under the ABCA on October 1, 2011.

On December 25, 2021, AdvEn undertook a share exchange with Nano Innovations Inc. ("Nano"), a company incorporated under the Business Corporations Act, British Columbia, Canada, whereby 100% of the then issued shares in AdvEn were exchanged for shares in Nano on a share-for-share (1-1) basis. The transaction has been accounted for as a reverse merger (see note 5 "Reverse Merger"). AdvEn was the acquiring entity for accounting purposes. The transaction is accounted for using the purchase method of accounting, the transaction was a recapitalization of Nano's capital structure. This resulted in Nano being the legal acquirer of AdvEn.

Nano subsequently undertook a name change on July 27, 2022 to AdvEn Inc. (together with its subsidiaries, the "Company").

All reference to common shares and per share amounts has been retroactively restated to effect the reverse acquisition as of the transaction had taken place on January 1, 2020.

The Company's head office is located at Unit 208-1075 West 1st Street, North Vancouver, British Columbia.

The Company's research and manufacturing facility is located at Unit 300 – 3615 11 Street, Nisku, Alberta, Canada.

**NOTE 2 – BASIS OF PRESENTATION**

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Statement of compliance** 

These consolidated financial statements have been prepared in accordance with IFRS as issued by the International Accounting Standards Board as adopted in Canada and in place for December 31, 2021 and 2020 and include the accounts of the Company and its subsidiary, all intercompany balances and transactions have been eliminated.

The financial statements of the Company for the year ended December 31, 2021 and 2020, were approved by the Board on October 13, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Basis of consolidation** 

The consolidated financial statements comprise the financial statements of the Company and its subsidiary. The subsidiary is an entity over which the Company has control. The Company controls an entity when the Company is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. These entities are fully consolidated from the date in which control is transferred to the Company and continue to be consolidated until the date control ceases. All intercompany transactions, balances, income and expenses are eliminated on consolidation.

The consolidated financial statements of the Company include AdvEn Industries and Nano. (see note 5 "Reverse Merger").

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Going concern** 

The accompanying consolidated financial statements have been prepared on a going concern basis, which assumes that the Company will be able to realize its assets and discharge its liabilities in the normal course of business. The financial statements do not reflect adjustments that would be necessary if the going concern assumption were not appropriate. If the going concern basis was not appropriate for these financial statements, then adjustments would be necessary to the carrying values of assets and liabilities.

The Company is focused on raising additional capital to continue research and development of industry-leading technology with plans to become a technology-based material developer and manufacturer.

These financial statements have been prepared on a going concern basis, which assumes that the Company will continue as a research and development company for the foreseeable future and will be able to generate positive free cash flow from its assets and discharge its liabilities in the normal course of business. The Company is still in its research and development phase, has been incurring losses since inception and has not generated revenue. During the year ended December 31, 2021, the Company incurred a net loss of $3,221,003 (2020 - $872,225), generated cash in operations totalling $1,122,878 (2020 – used $558,118) and as at December 31, 2021 has accumulated deficit totalling $9,961,174 (2020 - $6,740,171). These factors raise substantial doubt around the Company's ability to continue as a going concern.

The Company's ability to continue as a going concern is dependent on accessing additional funding and support from its investors. The financial statements do not reflect adjustments in the carrying value of the assets and liabilities, the reported revenues and expenses and the statement of financial position classification that would be necessary if the going concern assumption were not appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Basis of measurement** 

These financial statements have been prepared on the historical cost basis.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Function and presentation currency** 

The Company and its subsidiary each determine their functional currency based on the currency of the primary economic environment in which they operate. Transactions denominated in a currency other than the functional currency of an entity are translated at the exchange rate in effect on the transaction date. The resulting exchange gains and losses are included in each entity's net earnings in the period in which they arise.

These financial statements are presented in Canadian dollars, which is the Company's functional currency. All financial information presented in Canadian dollars has been rounded to the nearest dollar.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Use of estimates and judgements** 

The preparation of the consolidated financial statements in conformity with IFRS requires management to make judgments, estimates and assumptions that affect the application of accounting policies, and the reported amount of assets, liabilities, income and expenses during the reporting period. Actual results may differ from these estimates and the differences could be material. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

Amounts reported are evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. However, actual results could differ from these estimates. Management has made significant assumptions about the future that could result in a material adjustment to the carrying amounts of assets and liabilities. In the event that actual results differ from assumptions made, relate to, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** **Provision for income tax** 

Deferred tax assets, including those arising from tax loss carry forwards, require management to assess the likelihood that the Company will generate sufficient taxable income in future periods to the utilize recognized deferred tax assets. Assumptions about the generation of future taxable profits depend on management's estimates of future cash flows. In addition, future changes in tax laws could limit the ability of the Company to obtain tax deductions in future periods.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** **Fair value of financial instruments** 

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. Fair value is measured at a point in time and may change in subsequent periods.

Where possible, fair value is determined by reference to quoted prices in the most advantageous active market available to the Company. In the absence of an active market, fair value is determined on the basis of valuation models, including discounted cash flow models. These models require assumptions of the amount and timing of future cash flows, discount rates and market conditions at the measurement date. External observable market data are used for these assumptions when available. When such data is not available, the Company uses the best possible estimate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii.** **Fair value of assets and liabilities acquired in a reverse merger and/or business combination** 

Acquired assets and assumed liabilities are recognized at fair value on the date the Company effectively obtains control. The measurement of each reverse merger and/or business combination is based on the information available on the acquisition dates. The estimate of any fair value of the acquired intangible assets, property, plant and equipment, other assets, liabilities assumed and contingent consideration are based on assumptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iv.** **Allowance for doubtful accounts** 

The Company applies an expected credit loss approach in determining allowances for doubtful accounts. The approach that the Company has taken for trade receivables is a provision matrix approach whereby lifetime expected credit losses are recognized based in aging characterization and credit worthiness of customers. Specific provisions may be used where there is information that a specific customer's expected credit losses have increased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**v.** **Useful lives of property, plant and equipment** 

The Company estimates the useful lives of property, plant and equipment based on the period over which the items of property, plant and equipment are expected to be available for use. The estimated useful lives of property, plant and equipment are reviewed periodically and are updated if expectations differ from previous estimates due to physical wear and tear, technical or commercial obsolescence and legal or other limits on the use of the relevant items of property, plant and equipment. In addition, the estimation of the useful lives of property, plant and equipment are based on internal evaluation and experience with similar assets. It is possible, however, that future results of operations could be materially affected by changes in the estimates brought about by changes in factors mentioned above. The amounts and timing of recorded depreciation expenses for any period would be affected by changes in these factors and circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**vi.** **Impairment of non-current assets** 

Property, plant and equipment assets are assessed for impairment at least annually and whenever there is an indication that the asset may be impaired. The Company determines the fair value less cost of disposal of its cash generating unit ("CGU") groupings. Recoverable amounts are determined by comparing the higher of value in use and fair value less cost of disposal amounts.

The process of determining the value in use or the fair values less cost of disposal requires the Company to make estimates and assumptions of a long-term nature regarding discount rates, projected revenues, margins, as applicable, derived from past experience, actual operating results and budgets. These estimates and assumptions may change in the future due to uncertain competitive and economic market conditions or changes in business strategies. Recoverable amounts are determined by comparing the higher of value in use and fair value less cost of disposal amounts.

Property, plant and equipment assets that are considered in development are not tested for impairment until such time as they are put into their intended use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**vii.** **Accrued liabilities** 

Measurement of accrued liabilities involves the use of estimates to be made by management for determining the amount to be accrued and/or disclosed in the consolidated financial statements. These estimates are based on financial information available to management at the time of preparation of the consolidated financial statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**viii.** **Compound financial instruments** 

The Company has issued a variety of financial instruments that require judgement to determine whether the security should be classified as an equity instrument, a financial liability, derivative liability or a compound financial instrument with both equity and liability components. Key factors impacting the classification of these instruments include the ability to reliably recognize and estimate the characteristics of the financial instrument, existence of maturity dates, mandatory interest and principal payments, conversion and redemption rights, subordination to other equity instruments and the ability the settle the instrument in cash or equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ix.** **Right of use assets and lease liabilities** 

Upon the inception of a lease, the Company uses its internally calculated weighted average cost of capital to determine the cost of the asset as well as the principal repayments of the lease liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**x.** **Revenue** 

Revenue is recognized when performance obligations are identifiable and recorded when goods, or services are delivered to customers. Transaction prices are derived from specific selling prices either at the time of delivery or when a contract is signed with the customer for future delivery of products or services. The Company determines revenue to be transferred at a point in time when the physical asset or services is immediately transferred or consumed by the end customer. Revenue is considered to be transferred over a period of time when a series of activities are performed over a longer period of time to deliver a service or good to the customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**xi.** **Government grants and subsidies** 

Government grants and subsidies are recognized as Other Income using the percentage completion method as contractual performance obligations are identifiable and completed. The Company analyzes the probability to complete its obligations and the reliability of receiving the financial benefits from grants and subsidies. The percentage completion of each of its performance milestones in accordance with its contractual obligations determines the earned portion of any grants or subsidies received as a percentage of total grants and subsidies. Unearned grants and subsidies where payment has been received, are carried as deferred government grants in the Company's statement of financial position.

&nbsp;&nbsp;&nbsp;&nbsp;**(g)** **Estimation of uncertainties relating to the global health pandemic from COVID-19 (the "Pandemic")** 

The Company has considered the possible effect that may result from the Pandemic in the preparation of these consolidated financial statements including the recoverability of carrying amounts of financial and non-financial assets. In developing the assumptions relating to the possible future uncertainties in the global economic conditions because of the Pandemic, the Company has used internal and external sources of information and expect that the carrying amount of these assets will be recovered. The impact of the Pandemic on the Company's financial statements may differ from that estimated as at the date of approval of these consolidated financial statements.

**NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES**

The accounting policies set out below are applied consistently to the periods presented.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Financial instruments** 

AdvEn recognizes a financial instrument as a financial asset or a financial liability when AdvEn becomes party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value except for financial assets and financial liabilities that are measured at fair value through profit and loss. Transaction costs that are directly attributable to the acquisition or issuance of the financial instrument are added to the fair value of finance assets and deducted from the fair value of financial liabilities at initial recognition.

The Company's financial instruments are:

---

| | | |
|:---|:---|:---|
| Financial instrument | Initial measurement | Subsequent measurement |
| Cash and cash equivalents | Fair value | Amortized cost |
| Accounts receivable | Fair value | Amortized cost |
| Due from related parties | Fair value | Amortized cost |
| Investment tax credits recoverable | Fair value | Amortized cost |
| Accounts payable | Fair value | Amortized cost |
| Due from shareholders | Fair value | Amortized cost |
| Related party promissory notes payable | Fair value | Amortized cost |
| Notes | Fair value | Amortized cost |
| Lease liabilities | Fair value | Amortized cost |
| Stock-based compensation | Fair value | Amortized cost |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** **Non-derivative financial assets** 

The Company initially recognizes accounts receivable on the date that they originate. All other financial assets (including assets designated at fair value through profit or loss) are recognized initially on the trade date at which the Company becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire or it transfers the rights to receive the contractual cash flows from the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest in transferred financial assets that is created or retained is recognized as a separate asset or liability.

Financial assets and liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, there is a legal right to offset the amounts and the Company intends either to settle on a net basis or to realize the asset and settle the liability simultaneously.

The Company has the following non-derivative financial assets: cash and cash equivalents, accounts receivable, due from related parties and investment tax credits recoverable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** **Non-derivative financial liabilities** 

The Company initially recognizes debt securities issued and subordinated liabilities on the date that they are originated. All other financial liabilities (including liabilities designated at fair value through profit or loss) are recognized initially on the trade date at which it becomes a party to the contractual provisions of the instrument. The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled or expire.

The Company has the following non-derivative financial liabilities: accounts payable, due to shareholders, related party promissory notes payable, and lease liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii.** **Derivative financial instruments** 

All derivatives are recognized as either assets or liabilities in the consolidated financial position at fair value. Changes in the fair value of derivative financial instruments are recognized periodically through profit or loss.

The Companies derivative financial liabilities are: Notes and non-cash compensation.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Cash and cash equivalents** 

Cash and cash equivalents presented in assets on the statement of financial position and in the statement of cash flows include components of cash that are readily available or convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Cash includes bank deposits, cash on hand and short-term deposits with an initial maturity of less than three months.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Accounts receivable** 

Accounts receivable are recorded based on the revenue recognition policy and are presented net of allowance for doubtful accounts. The Company applies an expected credit loss approach in determining allowances for doubtful accounts.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Property, plant and equipment** 

Property, plant and equipment is measured at cost less accumulated depreciation. The initial cost of an asset comprises its purchase price and any costs directly attributable to bringing the asset into working condition for its intended use. Repairs and maintenance costs are charged directly to profit and loss as incurred. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets. The cost of self-constructed assets includes the costs of materials and direct labour and any other costs directly attributable to bringing the assets to a working condition for their intended use. Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits are present, and the cost of the item can be measured reliably.

---

| | | |
|:---|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Depreciation**<br> **method** | **Depreciation term** |
| Lab equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight-line | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 years |
| Production equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight-line | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5 years |
| Computer equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight-line | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3 years |
| Office equipment | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight-line | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8 years |
| Leasehold improvements | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Straight-line | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term of the lease |

---

An asset's residual value, useful life and depreciation method are reviewed at each reporting period and adjusted if appropriate.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of the item of property, plant and equipment, and are recognized in profit or loss.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Impairment of assets** 

All non-financial assets are reviewed at the end of each reporting period to determine whether the carrying amount may not be recoverable. If evidence of impairment is identified, the asset is tested for impairment.

For purposes of impairment testing, if an asset does not generate cash inflows that are largely independent of the cash inflows from other assets or groups of assets, it is grouped with other assets to create a CGU, which is the smallest identifiable group of assets that generates cash inflows that are largely independent of the cash inflows of the cash inflows from other assets or groups of assets. As at December 31, 2021, the Company had a single CGU for purposes of conducting scientific research and development.

The recoverable amount of an asset or a CGU is the higher of its fair value less costs to sell and its value in use. Value in use is determined on the basis of profit or loss projections over its useful life using management's forecast tools (for the first three years) and an estimate over the subsequent years based on long-term market trends for the asset or CGU involved. The calculation considers net cash flows to be received on disposal of the asset or CGU at the end of its useful life based on the growth and profitability profile of each asset or CGU.

An impairment loss is recognized when the carrying amount of any asset or its CGU exceeds its estimated recoverable amount. During the period no impairment loss was recognized.

An impairment loss recognized in prior periods for an asset or a CGU other than goodwill is reversed when there has been a change in the estimates used to determine the asset's recoverable amount since the last impairment loss was recognized. If this is the case, the carrying amount of the asset is increased to its recoverable amount, without exceeding the carrying amount that would have been determined (net of amortization or depreciation) had no impairment loss been recognized for the asset in prior periods.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Provisions** 

A provision is recognized when the Company has a present legal or constructive obligation as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and the amount of the obligation can be reliably estimated. The amount of a provision is the best estimate of the consideration at the end of the reporting period. Also, provisions measured using estimated cash flows required to settle the obligation are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

A provision for onerous contracts is recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable cost of meeting its obligations under the contract.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Accounts payable** 

Accounts payable are initially recognized at fair value and subsequently measured at amortized cost using the effective interest rate method unless settled before remeasurement is required.

&nbsp;&nbsp;&nbsp;&nbsp;**(g)** **Deferred licensing income** 

Deferred licensing income is recorded based on the revenue recognition policy for contract revenue in licensing contracts. Deposits are received from customers at the beginning of the contract and amounts are relieved from deferred licensing income as revenue is recognized based on the terms within the contract.

&nbsp;&nbsp;&nbsp;&nbsp;**(h)** **Notes** 

Notes are a compound financial instrument recognized initially at fair value, net of transaction costs incurred. Initially Notes contractual terms are evaluated for conditions that may give rise to uncertainty or variability in the future repayment of cash or equity. Initial recognition of these notes with these characteristics may include a derivative liability which is measured using an applicable valuation model. Subsequently these are stated at amortized cost with any difference between the proceeds and redemption value recognized in the profit or loss over the term of the debt using the effective interest rate method. These liabilities are classified as current unless the Company has an unconditional right to defer settlement for at lease 12 months aft the consolidated statement of financial position date.

&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Leases** 

Leases are recognized as a right of use asset and a corresponding liability at the date at which the leased asset is available for use by the Company. Assets and liabilities arising from a lease are initially measured on a present value basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** **Right of use asset** 

Right of use assets are measured at cost comprising the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the
 amount of the initial measurement of lease liability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any
 lease payments made at or before the commencement date less any lease incentives received;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· any
 initial direct costs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· estimated
 restoration costs.

The right of use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** **Lease liabilities** 

Lease liabilities include the net present value of the following lease payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· fixed
 payments (including in-substance fixed payments), less any lease incentives receivable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· payments
 of penalties for terminating the lease, if the lease term reflects the lessee exercising
 that option.

The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the lessee's incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.

Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the statement of earnings over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Payments associated with short-term leases and leases of low-value assets are recognized on a straight-line basis as an expense in the statement of earnings. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment and small items of office furniture.

Extension options are included in a number of property and equipment leases across the Company. These terms are used to maximize operational flexibility in terms of managing contracts. The majority of extension options held are exercisable only by the Company and not by the respective lessor.

&nbsp;&nbsp;&nbsp;&nbsp;**(i)** **Income taxes** 

Income tax expense comprises current and deferred taxes. Current and deferred taxes are recognized in profit or loss except to the extent that it relates to the initial recognition of deferred tax assets or liabilities in a business combination, items recognized directly in equity or in other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax payable arising from the declaration of dividends.

Deferred tax is recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date.

A deferred tax asset is recognized for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

&nbsp;&nbsp;&nbsp;&nbsp;**(j)** **Foreign currency translation** 

Transactions in foreign currencies are translated using the exchange rate prevailing at the date of the transaction. At each reporting date, foreign currency denominated monetary assets and liabilities are translated at year-end exchange rates. Exchange differences arising from the transactions are recorded in profit or loss for the period. Exchange differences arising from operating transactions are recorded in operating profit for the period; exchange differences related to financing transactions are recognized as finance costs or income.

&nbsp;&nbsp;&nbsp;&nbsp;**(k)** **Share capital** 

Common shares are classified as equity. Costs directly attributable to the issuance of common shares and dilutive securities are recognized as a deduction from equity, net of any tax effects. Transaction costs directly attributable to the issuance of common shares are recognized as a deduction from equity. The proceeds from the exercise of any dilutive securities together with amounts previously recorded in contributed surplus over the vesting periods are recorded as share capital. Share capital issued for non-monetary consideration is recorded at an amount based on fair market value of the shares on the date of issue. Where the Company has undertaken a consolidation or split of its equity securities, such changes are applied retrospectively. Retrospective adjustments and retrospective restatements are not changes in equity but they are adjustments to the opening balance of retained earnings and carried forward through the reporting period.

&nbsp;&nbsp;&nbsp;&nbsp;**(l)** **Stock based compensation** 

Equity-settled stock based compensation to employees, directors and key consultants is measured at fair value of the equity instrument (i.e. options, performance warrants and stock awards) at the grant date and recognized in profit or loss over the vesting periods. Stock based compensation to non-employees is measured at the fair value of goods or services received or the fair value of the equity instruments issued, if it is determined the fair value of the goods or services cannot be reliably measured and are recorded at the date the goods or services are received. The corresponding amount is recorded to contributed surplus. The fair value of the equity instrument is determined using either the Black–Scholes option pricing model or a binomial option pricing model, as applicable, which incorporate all market vesting conditions. The number of equity instruments expected to vest is reviewed and adjusted at the end of each reporting period such that the amount recognized for services received as consideration for the equity instruments granted shall be based on the number of equity instruments that eventually vest.

Upon the exercise of any equity instrument, the consideration received is recorded as share capital and the related share-based compensation is included in contributed surplus.

&nbsp;&nbsp;&nbsp;&nbsp;**(m)** **Revenue recognition** 

Revenue from the experimental determinations represent the Company's contractual arrangements with customers. Revenue is recorded when control passes to the customer, in accordance with specified contract terms.

&nbsp;&nbsp;&nbsp;&nbsp;**(n)** **Government grants and subsidies** 

In the course of its activities, the Company applies for and receives government grants related to research and development expenditures and the development of new technologies. These grants are recognized when there is reasonable assurance that the Company will comply with the conditions attached to them, and that the grants will be received. Grants are recognized as other income.

When the funds granted relate to the construction or acquisition of property, plant and equipment, the amount received is recognized as a long-term liability until such a point as the asset is put to use. At that point, the amounts will be recognized in profit or loss with consistent terms as the underlying asset is depreciated. See Note 14 – "Deferred Government Grants" for details.

&nbsp;&nbsp;&nbsp;&nbsp;**(o)** **Government grants and subsidies *(continued)*** 

When government assistance is repayable, a liability is created except when there is reasonable assurance that the entity will meet the conditions prescribed for not repaying the amounts received. This liability is recorded at the discounted value of the repayments due.

In response to the Pandemic, governments have established various programs to assist companies through this period of uncertainty. Management has determined that the Company qualifies for certain programs and recognizes such government subsidies when there is reasonable assurance the subsidy will be received. Under IAS 20 – Accounting for Government Grants and Disclosure of Government Assistance, the Company may recognize subsidies as either other income or a reduction of the expense related to the grant. AdvEn has elected to recognize as other income. See Note 15 – "Government Subsidies" for details.

&nbsp;&nbsp;&nbsp;&nbsp;**(p)** **Research and development** 

Expenditures related to research activities are recognized as an expense in the period in which they are incurred. An internally generated intangible asset arising from development (or from the development phase of an internal project) is recognized if, and only if, the entity can demonstrate all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the
 technical feasibility of completing the intangible asset so that it will be available for
 use or sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· its
 intention to complete the intangible asset and use or sell it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· its
 ability to use or sell the intangible asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· how
 the intangible asset will generate probable future economic benefits. Among other things,
 the Company can demonstrate the existence of a market for the output of the intangible asset
 or the intangible asset itself or, if it is to be used internally, the usefulness of the
 intangible asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· the
 availability of adequate technical, financial and other resources to complete the development
 and to use or sell the intangible asset; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· its
 ability to measure reliably the expenditure attributable to the intangible asset during its
 development.

&nbsp;&nbsp;&nbsp;&nbsp;**(q)** **Interest income** 

Interest income is accounted for on an accrual basis using the effective interest method.

&nbsp;&nbsp;&nbsp;&nbsp;**(r)** **Investment tax credits** 

The Company receives indirect financial assistance from the government by way of the investment tax credit program. This program provides assistance, by way of direct payments and reductions in corporate income taxes, for specially defined qualifying expenditures. Investment tax credits are credited against the related research and development expenses, or capital assets, where applicable.

&nbsp;&nbsp;&nbsp;&nbsp;**(s)** **Earnings per share** 

Basic earnings per share is calculated by dividing the profit or loss attributable to owners of the Company by the weighted average number of common shares outstanding during the year.

Diluted earnings per share is calculated by dividing the profit or loss attributable to owners of the Company by the weighted average number of common shares outstanding, adjusted for the effects of all dilutive securities. The weighted average number of common shares outstanding is increased by the total number of additional common shares that would have been issued by the Company assuming exercise of all dilutive securities with exercise prices below the average market price for the year.

&nbsp;&nbsp;&nbsp;&nbsp;**(t)** **Related party transactions** 

Related party transactions are in the normal course of operations and are recorded at the exchange amount.

&nbsp;&nbsp;&nbsp;&nbsp;**(u)** **New accounting standards and interpretations not yet adopted** 

In January 2020, the International Accounting Standards Board issued "Classification of Liabilities as Current or Non-current" as an amended International Accounting Standard ("IAS") 1 "Presentation of Financial Statements. The amendments clarify the right to defer settlement, which is one of the existing requirements when classifying a liability to current or non-current. The amendments will be effective for AdvEn as of April 1, 2023. However, in November 2021, the International Accounting Standards Board published an exposure draft with proposed revisions to the amendments to IAS 1 and proposed a deferral of the effective date. The impact of the amendments to the Company's results of operations and financial position is being evaluated.

&nbsp;&nbsp;&nbsp;&nbsp;**(v)** **Comprehensive income (loss)** 

Comprehensive income (loss) is defined as the change in equity resulting from transactions.

**NOTE 4 – DETERMINATION OF FAIR VALUES**

A number of the Company's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. When applicable, further information about assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.

Financial instruments measured as fair value on the statement of financial position require classification into one of the following levels of the fair value hierarchy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level
 1: Valuations based on quoted prices in active markets for identical assets or liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level
 2: Valuations based on observable inputs other than quoted active market prices; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Level
 3: Valuations based on significant inputs that are not derived from observable market data,
 such as discounted cash flow methods.

The fair value hierarchy level at which a fair value measurement is categorized is determined on the basis of the lowest level input that is significant to the fair value measurement in its entirety.

When available, AdvEn Industries uses unadjusted quoted market prices in active markets to measure fair value and classifies such items within Level 1. If quoted market prices are not available, fair value is based upon internally developed valuation techniques that use, where possible, current market-based or independently sources market parameters, such as interest rates, currency rates and option volatilities. Items valued using internally generated models are classified according to the lowest level input that is significant to the valuation. For certain financial assets and liabilities, the Company determines fair value using third-party information such as indicative quotes from dealers and quantitative input from investment advisers following AdvEn Industries's established valuation procedures including validation against internally developed prices.

Transfers between levels are deemed to have occurred at the beginning of the interim period in which the transfers occur.

**NOTE 5 – REVERSE MERGER**

On December 25, 2021, AdvEn and Nano closed a share exchange agreement whereby AdvEn shareholders exchanged 100% of the Company's share capital for 26,000,000 shares in Nano. Prior to the share exchange, AdvEn undertook a consolidation of shares on a one to 0.6445 basis resulting in a total issued and outstanding shares in AdvEn of 26,000,000. All reference to common shares and per share amounts has been retrospectively restated to effect the reverse split of shares as if the transaction had taken place as of the beginning of the earliest period presented. The share exchange resulted in an exchange of shares on a one-to-one (1-1) basis. The total resulting shares outstanding in Nano (the Company) was 32,750,000.

The Company compared the concentration of assets, less cash, between Nano and Adven as at December 24, 2021 to determine the economic acquirer.

As the concentration of fair value of assets is primarily held within AdvEn and the primary asset held by Nano is cash and cash equivalents, AdvEn is the economic acquirer of Nano. AdvEn also has business processes and inputs that may result in the contribution to the creation of outputs, thereby classifying AdvEn as a business. However, Nano does not have any business processes or inputs that result in the ability to contribute to the creation of outputs, as such Nano is not a business. The share exchange has therefore been accounted for as a reverse merger of Nano by AdvEn rather than as a business combination while Nano is the legal surviving entity with AdvEn as a wholly owned subsidiary.

The Company has reported the total capitalization of the combined entities retrospectively to reflect the share exchange and consolidation. Retrospective adjustments and retrospective restatements are not changes in equity but they are adjustments to the opening balance of retained earnings and carried forward through the reporting period.

Had the reverse merger occurred on January 1, 2020, the consolidated financial statements would show pro forma loss and comprehensive loss of $873,591 for the year ended December 31, 2020 and $1,889,196 for the year ended December 31, 2021.

Upon initial recognition, Nano's net assets were as follows:

---

| | |
|:---|:---|
| **As at December 24, 2021** | **Nano Innovations<br> Inc.** |
| Cash and cash equivalents | $3730009 |
| Due from related parties | 65000 |
| Prepaid expenses and other assets | 50012 |
| **Total assets** | **3845020** |
| Accounts payable | 1979 |
| Current portion of Notes | 3062829 |
| Convertible debenture derivatives | 128012 |
| **Total liabilities** | **3192820** |
| **Net assets** | $**652200** |

---

For purposes of estimating the transaction value, the short-term notes have been calculated at the face value of the host liability. However, upon initial recognition following the assumption of the liability, AdvEn determined the notes have certain characteristics that include a host liability, derivative liability and equity and have been adjusted accordingly once AdvEn became party to the notes (see Note 3a).

**NOTE 6 – ACCOUNTS RECEIVABLE** 

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| Receivable from private placement *(note 13)* | $**-** | $1997090 |
| Receivable from customers | **174219** |  |
| GST receivable | **211719** | 33821 |
|  | $**385938** | $2030911 |

---

**NOTE 7 – RIGHT OF USE ASSETS**

The Company's leasing activities comprises leases of its office, lab facility in Edmonton and its commercial facility in Nisku. The Company's leases have terms expiring between 2022 and 2031 (see Note 10).

---

| | |
|:---|:---|
|  | **Total** |
| **Cost of right of use assets** |  |
| Balance, January 1, 2020 | $251056 |
| Additions | 51121 |
| Balance, December 31, 2020 | 302176 |
| Additions | 1889038 |
| **Balance, December 31, 2021** | $**2191215** |
| **Accumulated Depreciation of right of use assets** |  |
| Balance, January 1, 2020 | $178038 |
| Additions | 74087 |
| Balance, December 31, 2020 | 252125 |
| Additions | 179060 |
| **Balance, December 31, 2021** | $431185 |
| **Net book value** |  |
| Balance, December 31, 2020 | $50052 |
| **Balance, December 31, 2021** | $**1760030** |

---

**NOTE 8 – PROPERTY, PLANT AND EQUIPMENT**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Lab**<br> **equipment** | **Production**<br> **equipment** | **Computer**<br> **and office**<br> **equipment** | **Leasehold**<br> **improvements** | **Assets**<br> **under**<br> **construction** | **Total** |
| **Costs** |  |  |  |  |  |  |
| Balance, January 1, 2020 | $166916 | $285606 | $38359 | $80767 | $- | $571648 |
| Additions | 11651 | 246047 | 2052 | - | - | 259750 |
| Balance, December 31, 2020 | 178567 | 531653 | 40411 | 80767 |  | 831398 |
| Additions | 95208 | 361117 | 16153 | 1210597 | 3130991 | 4814066 |
| **Balance, December 31, 2021** | $**273775** | $**892770** | $**56564** | $**1291364** | $**3130991** | $**5645464** |
| **Accumulated Depreciation** |  |  |  |  |  |  |
| Balance, January 1, 2020 | $117788 | $180953 | $21955 | $46880 | $- | $367576 |
| Additions | 19351 | 73150 | 4533 | 16278 | - | 113312 |
| Balance, December 31, 2020 | 137139 | 254103 | 26488 | 63158 |  | 480888 |
| Additions | 15072 | 93830 | 6447 | 56719 | - | 172068 |
| **Balance, December 31, 2021** | $**152211** | $**347933** | $**32935** | $**119877** | $- | $**652956** |
| **Net book value** |  |  |  |  |  |  |
| Balance, December 31, 2020 | $41428 | $227550 | $13923 | $17609 | $- | $350510 |
| **Balance, December 31, 2021** | $**121564** | $**544837** | $**23629** | $**1171487** | $**3130991** | $**4992508** |

---

**NOTE 9 – ACCOUNTS PAYABLE**

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| Trade payables | $**714209** | $256862 |
| Trade payables relating to property, plant and equipment | **765060** |  |
| Accrued interest | **182553** |  |
| Accrued liabilities | **75506** | 37500 |
| Canadian Emergency Business Account loan payable | **39462** | 29679 |
| Payroll payable | **57493** | 15501 |
|  | $**1834283** | $339542 |

---

Included in trade payables are $237,193 (2020 - $227,454) to a related party for an entity controlled by the Chief Executive Officer.

**NOTE 10 – LEASE LIABILITIES**

All leases are accounted for in accordance with the Company's policy for leases (see Note 3i).

Lease liabilities are measured at the present value of the contractual payments due to the lessor over the lease term, with the discount rate of 15% determined using references to public market interest rates and the companies weighed average cost of capital during the year ended December 31, 2021.

On initial recognition, the carrying value of the lease liability also included any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of termination option being exercised.

Right of use assets were initially measured at the amount of the lease liability, reduced for any lease incentives received, and increased for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• lease payments made at or before commencement of the lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• initial direct costs incurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the amount of any provision recognized where the Company is contractually required to dismantle, remove or restore the leased asset.

Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortized on a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset.

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| Opening balance | $**63051** | $81212 |
| Additions | **1889038** | 51121 |
| Payments | **(143752)** | (69282) |
| Total lease liabilities | **1808337** | 63051 |
| Less current portion | **(43701)** | (37707) |
| Non-current portion | $**1764636** | $25344 |

---

Payment of principal amounts owing are scheduled as follows:

---

| | |
|:---|:---|
| 2022 | $43701 |
| 2023 | 30610 |
| 2024 | 123534 |
| 2025 | 144181 |
| 2026 and thereafter | 1466311 |
|  | $1808337 |

---

The Company incurred $11,024 (2020 - $7,948) in low value lease expenses, $nil (2020 - $nil) in short term lease expenses, and $142,075 (2020 - $11,878) in interest expense related to lease liabilities.

**NOTE 11 – DUE TO SHAREHOLDERS**

Due to shareholders is unsecured, bears no interest and has no fixed terms of repayment. The amounts were repaid in full in 2021.

**NOTE 12 – RELATED PARTY PROMISSORY NOTES PAYABLE**

The Company issued separate promissory notes payable to companies owned or controlled by the Chief Executive Officer and one director of the Company. The notes bear an annual interest rate of 6% and 12% and are due on demand. During the year, Company paid total interest of $48,339 (2020-$27,916).

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| Opening balance | $**600000** | $50000 |
| Additions | **930300** | 600000 |
| Payments | **(1050000)** | (50000) |
|  | $**480300** | $600000 |

---

**NOTE 13 – NOTES**

Upon completion of the share exchange with Nano (see Note 5), the Company assumed $3,859,500 (USD$3,000,000) senior secured Note with an accompanying warrant for the purchase of common shares in the Company within 10 years (the "Warrant" and together the "Bridge Financing").

The Notes mature on the earlier of December 22, 2022 or upon the occurrence of the public offering of Common Shares of not less than USD$50 million, resulting in the listing for trading of the Common Shares on the NYSE American, Nasdaq, the Nasdaq Global Market, the Nasdaq Global Select Market or the New York Stock Exchange. The Notes may be extended if a Liquidity Event is in process and contemplated. The conversion price of the Notes is discounted from the share price for common shares at the Liquidity Event by 35%.

The Notes bear interest at 10% per annum payable upon maturity increasing to 15% if no Liquidity Event is in process or contemplated. The Notes are senior secured notes with specific security interest over all the assets of the Company excluding the intellectual property.

The Warrant may be issued to Note holders following the conversion of the Notes to common shares. Note holders have the right to purchase up to 50% of the number of common shares issued upon the full conversion of the Note calculated using 100% of the original principal amount plus any actual unpaid accrued interest on the Note divided by the exercise price at the Liquidity Event (the "Exercise Price"). The purchase price of one common share under the Warrant is equal to the Exercise Price. In the event of default or the maturity date is extended, the Warrants increase to 75% of the number of common shares issued upon the full conversion of the Note. In addition, the Warrants contain anti-dilution provisions for Exercise Price reductions should the Company issue equity or equity-like instruments at a lower per share price than the Exercise Price. The Warrants also contain a cash settlement provision based on the fair value of the Warrants in the event the Company sells more than 50% or more of its equities or assets. Warrants will not be issued if the Notes do not convert. There were no stock warrants granted nor exercised nor expired during the years ended December 31, 2021 and 2020.

The Bridge Financing is a compound financial instrument. The host liability is an obligation to pay the Company cannot avoid. However, the liability is in a currency other than the Company's functional currency and does not meet the fixed-for-fixed repayment terms of a financial liability; it contains a non-separable derivative liability. The conversion feature,

while also meeting the definition of a derivative, contains a settlement provision based on the occurrence of a Liquidity Event and dependent on the approval of the Securities and Exchange Commission ("SEC") and one of the above noted stock exchanges. As the settlement provision is outside of the Company's control, it forms part of the host liability.

The Warrant also contains a settlement provision that is outside of the Company's control, however the contingent settlement provision is classified as equity.

The Notes contain a host liability, derivative liabilities and equity as distinct elements accounted for separately upon initial recognition. While the Bridge Financing Liability was recognized at the carrying value at the time of the Share Exchange with Nano, the Company applied its initial recognition retrospectively as at the date of issuance. Upon initial recognition, the Company first estimated the derivative liability of the currency exchange using the Black Scholes method of valuation with a single time for maturity as a call option using the following assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Term
 – 1 year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Volatility
 - 6.17%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risk
 Free Rate – 1.6%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Dividend
 Yield – nil

As at December 22, 2021, the date of initial recognition, the fair value of the derivative liability was $128,012.

The Company calculated the present value of the host liability with the following assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Term
 – 1 year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Discount
 factor – 15.3% (as per the Company's weighted average cost of capital ("WACC")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Interest
 rate – 10%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· USD
 Conversion rates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o December 22, 2022 – 1.2865

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o December 31, 2022 – 1.2678

The present value of the host liability upon initial recognition was $3,347,355. The remaining $384,134 was applied to equity.

Transaction costs are applied proportionately to the financial liability and equity. Changes are recorded in profit and loss.

Subsequently, the Bridge Financing was calculated at amortized cost as follows:

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| Principal amount | $**3859500** | $- |
| Unamortized discount | **(495333)** |  |
| Unamortized transaction costs | **(275950)** | - |
| Notes – liability component | $**3088217** | - |

---

The liability component of the debenture was accreted to the face value of the debenture with a resulting charge to finance expenses. During the year ended December 31, 2021, the Company expensed $15,435 (2020 - $Nil) as accretion expense and $9,953 (2020 -$Nil) amortization of deferred financing fees.

Interest accrued on the Notes for the year ended December 31, 2021 was $11,631 (2020 - $Nil).

The derivative liability was calculated as follows:

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| Opening balance | $**-** | $- |
| Initial recognition | **128012** |  |
| Change in fair value | **2613** | - |
| Notes – derivative liability | $**130625** | - |

---

**NOTE 14 – DEFERRED GOVERNMENT GRANTS**

The Company has successfully been awarded two grants from two different government agencies to be applied to the construction of the 300 metric ton per year Commercial Demonstration plant project in Nisku, Alberta, Canada. In aggregate the grants are worth $7,048,346. Below is the summary of the two grants received by the government:

&nbsp;&nbsp;&nbsp;&nbsp;(a) Sustainable Development Technology Canada

On March 25, 2021, the Company signed a project funding agreement with SDTC. SDTC is a not-for-profit foundation for the purpose of fostering the development and adoption of technologies that contribute to Sustainable Development Technology infrastructure in Canada by contributing to the rapid development, demonstration and pre-commercialization of technological solutions that address climate change, clean air, clean water and clean soil. The investment by SDTC will not exceed $3,850,000 which will be broken down into four milestones.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Alberta Innovates

On April 1, 2021, the Company signed an investment agreement with AI. As per the conditions of the investment agreement, the project has to be completed by July 1, 2022. If an unforeseen circumstance arises whereby, it is not possible to meet the deliverables set out in a particular Milestone, the Company can request an amendment to the Investment Agreement by contacting Alberta Innovates no later than two weeks prior to the next Milestone completion date. Changes may include, but are not limited to, the following: (i) an increase or decrease in the Investment associated with a particular Milestone, or the Project as a whole; (ii) a proposed change in the scope of the Project; (iii) a delay in the completion of a Milestone, irrespective of any impact on the Project Completion Date; (iv) a Change in Control of the Applicant(s); or (v) any other changes as determined by Alberta Innovates.

If the project is not completed by such date, AI may elect to terminate this investment agreement and the Company will be notified and AI will have no liability or obligation to reimburse the Company for any project cost incurred after the effective date of termination. The investment by AI will not exceed $3,600,000 in accordance with the investment agreement. The investment is broken into five milestones. Upon the execution of the investment agreement, AI will provide $2,000,000, and the remaining $1,600,000 will be provided at completion of each milestone.

As of December 31, 2021, the Company has received $3,593,346. As this funding relates to a capital project that is still under construction and includes specific milestones, the amount specified for capital expenditures is recognized as a long-term liability until such as the milestones have been achieved or the asset is put to use as the case may be. At that point, the amounts will be recognized in profit or loss with consistent terms as the underlying asset is depreciated.

Below is the summary of the deferred revenue:

---

| | | | |
|:---|:---|:---|:---|
| **Deferred government grants** | **SDTC** | **AI** | **Total** |
| Total funds received | $1448346 | $2145000 | $3593346 |
| Recognized in profit and loss | 291358 | 425235 | 716593 |
| **Balance December 31, 2021** | **1156988** | **1719765** | **2876753** |
| Less current portion | (99681) | (266913) | (366594) |
| **Non-current portion** | $**1057307** | $**1452852** | $**2510159** |

---

**NOTE 15 – GOVERNMENT SUBSIDY**

 

During 2020 and 2021, the Company received the following government subsidies.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Canada Emergency Business Account ("CEBA")** 

CEBA is an interest free loan provided to small business and is partially forgivable. The Company received $40,000 in April of 2020 and of which $10,000 is the forgivable portion. AdvEn recognized $10,000 and interest of $2,376 as other income in 2020. In March of 2021, Company received additional $20,000 and of which $10,000 is forgivable and was recognized as other income.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Industrial Research Assistance Program ("IRAP")** 

IRAP is designed to help Canadian businesses to accelerate the research and development projects of Canadian innovators. IRAP subsides 60- 80% of the labor cost. During 2021, the Company received $78,184 in wage subsidy from the program.

**NOTE 16 – SHARE CAPITAL**

Share capital is comprised of an unlimited number of common shares with no stated par value per share. All the common shares have the same rights in respect of the distribution of dividends and the repayment of capital. Each share confers the right to one vote at the annual general meeting.

On December 25, 2021, the Company undertook a reverse stock split of its shares on the basis of 1:0.6445 (see Note 5). As a result, the Company has applied the reverse stock split retrospectively to January 1, 2020 as presented in the Statement of Equity and the accompanying notes. Retrospective adjustments and retrospective restatements are not changes in equity but they are adjustments to the opening balance of retained earnings and carried forward through the reporting period.

---

| | | |
|:---|:---|:---|
|  | **Common shares** | **Common shares** |
|  | **Number of shares** | **Amount** |
| Balance, January 1, 2020 | 19891413 | $4127100 |
| On May 4, 2020, issued 1,485,577 common shares for $0.13 per share | 1487293 | 300000 |
| On December 31, 2020, issued a subscription agreement for 2,381,231 common shares for $0.53 per share | 2383982 | 1997090 |
| Balance, December 31, 2020 | 23762688 | $6424190 |
| On March 22, 2021, issued a subscription agreement for 1,554,588 common shares for $0.05 per share | 1554588 | 120714 |
| On September 2, 2021, issued a subscription agreement for 682,724 common shares for $0.05 per share. | 682724 | 52857 |
| Issued to Nano shareholders in reverse merger (Note 5) | 6750000 | 652200 |
| **Balance, December 31, 2021** | **32750000** | $**7249961** |

---

**NOTE 17 – RESEARCH AND DEVELOPMENT** 

The Company is currently working on multiple research and development projects to deliver high-performance technology platform for converting hydrocarbon resources to non-combustion applications via superior performance, lower-cost and cleaner environmental impact. These projects are qualified under the Scientific Research and Experimental Development Tax Incentive ("SR&ED") program administered by the Government of Canada. SR&ED credits are available to Canadian controlled private corporations and provide from 15-35% refundable tax credits on eligible expenses and from 8-20% for eligible expenditures in Alberta. The program applies to basic research, applied research or experimental development used to gain new knowledge or undertake a systematic understanding in a field of technology.

A summary of the expenses related to research and development projects follows:

---

| | | |
|:---|:---|:---|
| **For the year ending December 31,** | **2021** | **2020** |
| Materials and supplies | **91951** | 82454 |
| Patents | **144981** | 78389 |
| Professional fees | **83455** | 218231 |
| Facility operating costs | **78482** | 62201 |
| Repair and maintenance | **22485** | 9274 |
| Salary and benefits | **650162** | 289718 |
| Utilities | **8968** | 12516 |
| Shipping | **172478** | 2349 |
| Travel and other costs | **17881** | - |
| Total research and development | **1270843** | 755132 |
| SR&ED credits | **(1027544)** | (200851) |
| Research and development, net of SR&ED | $**243299** | $554281 |

---

During 2021 and 2020, the Company performed some testing which was billed to an unrelated third party. This income was recorded as a recovery of research and development expenses in the amount of $186,638 (2020 - $10,585).

**NOTE 18 – FINANCE EXPENSES**

---

| | | |
|:---|:---|:---|
| **For the year ending December 31,** | **2021** | **2020** |
| Interest related to lease liabilities | $**142075** | $11878 |
| Interest related to other liabilities | **127671** | 27917 |
| Accretion | **15435** |  |
| Amortization of deferred financing fees | **9953** | - |
| Total finance expense | $**295134** | 39795 |

---

**NOTE 19 – SHARE-BASED COMPENSATION** 

The Company awarded share purchase options as performance awards to key management during the period from January 1, 2020 through December 31, 2021. On August 31, 2021, the directors of Nano approved a stock option plan that provided for up to 10% of the total issued and outstanding shares of Nano to be issued from time-to-time by the board to employees, directors, officers and key consultants of the Company (the "Plan"). Upon completion of the share exchange between AdvEn and Nano on December 25, 2021 (see Note 5), the Plan became the formal stock option plan for the combined legal entity. Prior to December 25, 2021, AdvEn share purchase option awards were granted on an ad hoc, as needed, basis by the Board.

The fair value of share purchase options is calculated as at the option grant's effective date using a call option pricing model that takes into consideration certain assumptions on exercise price, market pricing, risk free interest rates, volatility and the expiry date of the option grant. Share-based compensation is amortized over the vesting period and recognized in profit and loss and accrued in equity. Upon exercise of the option, the exercise is recognized in cash and Common Shares.

As the Company is a private corporation preparing for a Liquidity Event, share purchase options may be exercised at any time once vested after there is a Liquidity Event. As such, the Company elected to use public market indicators for its fair value analysis and to calculate fair value using a binomial call option pricing model with the following assumptions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Strike
 Price – Price of the share purchase option award in accordance with the Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Historical
 Price – Weighted average price of equity transactions made by willing and knowledgeable
 market participants during the prior two years ($0.21 per share in 2020; and $0.50 per share
 in 2021);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Volatility
 – the median volatility of a peer group of public companies selected in consultation
 with the Company's bankers and consultants (in this case 1.16);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Risk
 Free Rate – One year treasury bill rate of the Bank of Canada (0.15% in 2020 and 0.75%
 in 2021); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Term
 – The period from the date of grant to the expiry of the share purchase option (10
 years).

Options have been calculated and presented on a combined basis retrospectively to January 1, 2020 as follows:

---

| | | |
|:---|:---|:---|
|  | Number of share<br> options | Weighted average<br> exercise price |
| Balance, January 1, 2020 | 41892 | $1.01 |
| Balance, December 31, 2020 | 41892 | 1.01 |
| Issued | 2968756 | $0.11 |
| Forfited | (41892) | $(0.45) |
| Exercised | (2237312) | 0.05 |
| Balance, December 31, 2021 | 731444 | $0.30 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Share options outstanding <br>December 31, 2020 | Share options outstanding <br>December 31, 2020 | Share options outstanding <br>December 31, 2020 | Share options outstanding <br>December 31, 2020 | Share options exercisable December<br> 31, 2020 | Share options exercisable December<br> 31, 2020 |
| Exercise <br>price | Number of<br> share options | Remaining <br> contractual life | Weighted average <br> exercise price | Number of<br> share options | Weighted average <br> exercise price |
| $1.01 | 16112 | 0.00 years | $1.01 |  | $1.01 |
| $1.01 | 25780 | 0.00 years | $1.01 |  | $1.01 |
| Total | 41892 | 0.00 years | $1.01 |  | $1.01 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| Share options outstanding <br>December 31, 2021 | Share options outstanding <br>December 31, 2021 | Share options outstanding <br>December 31, 2021 | Share options outstanding <br>December 31, 2021 | Share options exercisable December<br> 31, 2021 | Share options exercisable December<br> 31, 2021 |
| Exercise <br>price | Number of<br> share options | Remaining <br> contractual life | Weighted average <br> exercise price | Number of<br> share options | Weighted average <br> exercise price |
| $0.30 | 150000 | 2.33 years | $0.30 |  | $0.30 |
| $0.30 | 581444 | 2.98 years | $0.30 |  | $0.30 |
| Total | 731444 | 2.85 years | $0.30 |  | $0.30 |

---

As of December 31, 2021, there was $287,706 (2020 - $Nil) of total unrecognized compensation cost related to options granted under the Plans. That cost is expected to be recognized over a weighted-average period of 2 years.

The weighted-average grant-date fair value of options granted during the years ended December 31, 2021 and 2020 was $0.45 and $0.45, respectively. The total fair value of options vested during the year ended December 31, 2021 $Nil (2020 - $Nil). The aggregate intrinsic value of share options exercised during the year ended December 31, 2021 $1,527,427 (2020 - $Nil). During the year ended December 31, 2021, the Company received $173,571 upon the exercise of 2,237,315 options with exercise prices around $0.08 (2020 - $Nil). There were no options granted nor exercised nor expired during the year ended December 31, 2020.

The fair value of each stock option award is estimated on the date of grant using a binomial option-pricing model based on the assumptions mentioned above.

**NOTE 20 – INCOME TAX EXPENSE**

The income tax provision differs from the amount that would be computed by applying the statutory rate of 23% (2020 – 24%). The reconciliation of the differences is as follows:

---

| | | |
|:---|:---|:---|
| **For the years ending December 31,** | **2021** | **2020** |
| Loss before income tax | $**(3221003)** | $(872225) |
| Statutory income tax rate | **23%** | 23.99% |
| Expected income tax recovery | **(740831)** | (209247) |
| Change in enacted tax rates | **-** | 7257 |
| Non-deductible expenses | **127698** | 1942 |
| Stock based compensation | **349136** |  |
| Others | **(106692)** | 31472 |
| Deferred tax assets not recognized | **370689** | 168576 |
| Income taxes | $**-** | $- |

---

The deferred tax assets and liabilities are attributable to the following:

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| Non-capital loss carried forward | $**3290145** | $3344141 |
| Capital assets | **198351** | 453363 |
| Lease liabilities | **48306** | 12999 |
| SR&ED ineligible tax credits | **2701191** | 994535 |
| Others | **507172** |  |
| Deferred income tax asset not recognized | **(6745165)** | (4805038) |
| Total deferred income tax asset | $**-** | $- |

---

The Company has incurred losses of $3,290,145 for tax purposes which are available to reduce future taxable income. Such benefits will be recorded as an adjustment to the tax provision in the year realized. The losses will expire between 2032 and 2041.

**NOTE 21 – NET LOSS PER SHARE**

The calculation of loss per share for the year ended December 31, 2021, is based on a loss attributable to shareholders of the Company of $3,221,003 (2020 - $872,226). Nil (2020 – Nil) Warrants and 731,444 (2020 – Nil) options were anti-dilutive during the years ended December 31, 2021 and December 31, 2020.

---

| | | |
|:---|:---|:---|
| **For the years ending December 31,** | **2021** | **2020** |
| Weighted average number of share outstanding: |  |  |
| &nbsp;&nbsp;&nbsp;Basic | **25585032** | 20849349 |
| &nbsp;&nbsp;&nbsp;Diluted | **25585032** | 20849349 |
| Loss per share | $**0.13** | $0.04 |

---

**NOTE 22 – SUPPLEMENTARY CASH FLOW INFORMATION**

Cash generated from (used in) non-cash working capital comprises:

---

| | | |
|:---|:---|:---|
| **For the years ending December 31,** | **2021** | **2020** |
| Accounts receivable | $**(347617)** | $(21094) |
| Prepaid expenses | **29137** | (77088) |
| Due from related parties | **65000** |  |
| Investment tax credit recoverable | **(826693)** | (54639) |
| Accounts payable | **1411690** | 217138 |
| Due to shareholders | **(86957)** | 42618 |
| Deferred government grants | **2876753** | - |
|  | $**3121313** | $106935 |

---

---

| | | |
|:---|:---|:---|
| **For the years ending December 31,** | **2021** | **2020** |
| Non-cash working capital generated from (used in) |  |  |
| &nbsp;&nbsp;&nbsp;Operating activities | $**2356253** | $106935 |
| &nbsp;&nbsp;&nbsp;Investing activities | **765060** | - |
|  | $**3121313** | $106935 |

---

**NOTE 23 – RELATED PARTY TRANSACTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Operating transactions** 

In addition to the amounts disclosed in notes 11 and 12, the Company had the following related party transactions:

During the year ended December 31, 2021, the Company entered into service agreement for engineering for management services with a company owned by the Company's Chief Executive Officer. Fees paid during the year for the service agreement totaled $325,000 (2020-$220,315).

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Key management compensation** 

Key management personnel are those persons responsible for the planning, directing and controlling the activities of the Company and includes both executive and non-executive directors. The Company considers all of its directors and executive management team members to be key management personnel.

Key management cash compensation comprises:

---

| | | |
|:---|:---|:---|
| **For the year ending December 31,** | **2021** | **2020** |
| Salaries, bonuses and other benefits | $**130516** | $120000 |
| Interest on promissory notes | **48339** | 27916 |
| Consulting fees | **46487** |  |
| Non-cash compensation | **1527427** |  |
|  | $**1752769** | $147916 |

---

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Amounts due from related parties** 

The Company has the following amounts due from related parties:

---

| | | |
|:---|:---|:---|
| **As at December 31,** | **2021** | **2020** |
| Recoverable expenses from companies controlled by AdvEn shareholders | $**488299** | $- |
| Demand note with entity controlled by a director | **65000** | - |
|  | $**553299** | $- |

---

All related party transactions are recorded at arms length. In determining the collectability of the amounts due from related parties, management assessed the financial strength, independence and reliance on the Company to repay the obligations and continue operations as a going concern. Each entity has it's own management and operates independently of AdvEn and is operating independently. However, each related party is dependent on accessing additional funding and support from investors as they have no cash flow from operations with which to repay its debts.

The Company has therefore created an allowance for doubtful accounts in the amount of $553,299 to reflect the future collectability of these amounts.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Technology spin out** 

Effective February 5, 2021, AdvEn issued two licensing agreements for the use of internally created technologies to two separate entities with common shareholders to AdvEn prior to the share exchange (see Note 5). The licenses rely on a single patent that was not in use by the Company nor intended for commercial exploitation in its current business plan. The licenses provided the unfettered use of the patent for the development of carbon fibre technologies and solid bitumen technologies. The Company does not expect any further residual economic value from the patent. The net book value of the patent was $nil.

As of the spin out date, there are no assets liabilities, revenues or expenses related to the spin out business. The licenses were issued in exchange for 26 million shares in Tangold Inc. (carbon fibre) and 26 million shares in AdvEn Solid Bitumen Inc. (together the "Spinout Companies"). As a result of this transaction, AdvEn was the sole shareholder of the Spinout Companies. No gain on this shareholder distribution of shares in the Spinout Companies was recorded and it was considered a capital transaction by the Company.

The Board of AdvEn subsequently issued a special dividend to the AdvEn shareholders distributing shares in the Spinout Companies pari pasu prior to the share exchange with Nano.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Financial guarantee** 

On or before November 29, 2021, AdvEn entered into an assignable share repurchase agreement ("By-back") with a private investor) to repurchase 2,381,231 of the authorized share capital of AdvEn. A director of AdvEn also served as a director and officer of the private investor. Consideration for the shares was in the form of a $1.5 million cash payment and a $500,000 promissory note (the "Private Investor Note"). The transaction was contingent upon the completion of a share exchange agreement between AdvEn and Nano which subsequently closed on December 24, 2021, the effective date of the Note. The Note was interest bearing at 10% per annum, subordinated to all other creditors of AdvEn.

At the time of closing, AdvEn assigned the By-back as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For
 consideration of CDN$1 million, 1,190,615 shares to Canadian Nexus Team Ventures Corp. ("CNTV").
 A director of the Company also serves as a director for CNTV.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· For
 a consideration of CDN$500,000 and assignment of the Private Investor Note, 1,190,615 shares
 to Ataraxi Holdings Corp. ("AHC"). AHC is materially controlled by a director
 of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AdvEn
 remained liable for the one-time interest payable of $50,000.

AdvEn remained as a guarantor for the Private Investor Note in conjunction with AHC and a director of the Company.

The Company determined the guarantee did not meet the requirements of a financial liability; any outflow in settlement is remote; and did not require the recognition of a contingent liability. The guarantee was subsequently released on June 16, 2022.

The Company has accrued for the interest payable under the note in profit and loss.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Variable interest entities** 

The Company has many dealings with entities that are under common management and/or common directors.

The Company evaluated the transactions entered with Bitumen Universal Landing Corp, Tangold Inc, and Adven Solid Bitumen Solutions throughout all of 2021 and 2020, for all related party transactions within AdvEn, AdvEn does not meet any of the requirements of control.

**NOTE 24 – FINANCIAL INSTRUMENTS**

The Company is exposed to various risks through its financial instruments and have a comprehensive risk management framework to monitor, evaluate and manage these risks. The following analysis provides information about the Company's risk exposure and concentration.

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Fair value** 

Due to the short-term nature of cash and cash equivalents, accounts receivable, and accounts payable; the Company has determined that the carrying amounts approximate fair value. The carrying amounts of lease liabilities, due to shareholders, Notes, and related party promissory notes payable also approximate their fair value as they were entered recently and interest rates have not changed materially during the period.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Credit risk** 

Credit risk is the risk of a potential loss to the Company if a lessee or third party to a financial instrument fails to meet its contractual obligations. The maximum credit exposure is the carrying amount of cash and cash equivalents, accounts receivable (goods and services tax ("GST") receivable and other accounts receivable) and net lease investment.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Liquidity risk** 

Liquidity risk is the risk that the Company will incur difficulties in meeting its financial obligations as they come due. The table below summarizes the future undiscounted contractual cash flow requirements as at December 31, 2021 for its financial liabilities:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| As at December 31, 2021 | Carrying<br> amount | Contractual<br> cash flow | Less than 12<br> months | 1 – 2 years | 2 – 3 years | Thereafter |
| Accounts payable | $1834283 | $1834283 | $1834283 | $- | $- | $- |
| Lease liabilities | 1808337 | 3634234 | 359985 | 378200 | 376076 | 2519973 |
| Related party promissory notes payable | 480300 | 537936 | 537936 |  |  |  |
| Notes | 3088217 | - | - | - | - | - |
|  | $7211137 | $6006453 | $2732204 | $378200 | $376076 | $2519973 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| As at December 31, 2020 | Carrying<br> amount | Contractual<br> cash flow | Less than 12 <br>months | 1 – 2 years | 2 – 3 years | Thereafter |
| Accounts payable | $339542 | $339542 | $339542 | $- | $- | $- |
| Lease liabilities | 63051 | 71341 | 43726 | 25491 | 2124 |  |
| Due to shareholders | 86957 | 86957 | 86957 |  |  |  |
| Related party promissory notes payable | 600000 | 672000 | 672000 | - | - | - |
|  | $1089550 | $1169840 | $1142225 | $25491 | $2124 | $- |

---

Management monitors and manages its liquidity risk through regular monitoring of its financial liabilities against the constraints of its available financial assets.

&nbsp;&nbsp;&nbsp;&nbsp;**(d)** **Market risk** 

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise four types of risk: interest rate risk, currency risk, commodity price risk and other price risk. The Company does not currently have significant direct exposure to any of these risk categories. Management believes the risk faced by the Company with regard to market risk is an acceptable risk faced in the ordinary course of business. General economic conditions globally, including relative strength of the Canadian dollars may adversely affect the value of the Company's business and the value of its financial instruments.

&nbsp;&nbsp;&nbsp;&nbsp;**(e)** **Capital risk management** 

The Company's objectives when managing capital is to safeguard its ability to continue as a going concern to provide returns and benefits to shareholders and to maintain an optimal capital structure to reduce the cost of capital and to meet minimum liquidity requirements. To maintain or adjust the capital structure, the Company may adjust the amount of capital returned to shareholders, issue new shares or debt, repurchase shares or sell assets.

The capital of the Company consists of shareholders' equity. The Company manages its capital structure and makes changes based on economic conditions, risks that impact the consolidated operations and future significant capital investment opportunities. To manage the Company's capital requirements, the Company has in place a planning and forecasting process which helps determine the funds required to ensure the Company has the appropriate liquidity to meet its operating and growth objectives. The Company's officers are responsible for managing the Company's capital and do so through meetings and review of financial information. The Board is responsible for overseeing this process. As at December 31, 2021 and 2020, the Company is not subject to externally imposed capital requirements. There were no changes to management of capital from the prior year.

&nbsp;&nbsp;&nbsp;&nbsp;**(f)** **Regulatory risk** 

The Company operates in a stable industry that is maturing as it adapts to government regulations within Alberta, Canada. Any evolution, adoption, or change of rules and regulations could have significant impact on the Company's operations. Regulatory risks include but are not limited to health and safety, environmental, hazardous material handling and disposal.

**NOTE 25 – CONTINGENCIES**

The Company in not involved in litigation matters that arise out of the ordinary course and conduct of its business. The likelihood of contingent liabilities resulting from these matters is not determinable and related potential losses cannot be reasonably estimated. No accrual of loss has been made to the consolidated financial statements.

**NOTE 26 – SUBSEQUENT EVENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;**(a)** **Government grants** 

AI - On January 11, 2022, the Company received its second milestone payment of $350,000 and its third milestone payment of $750,000 on March 8, 2022.

SDTC - On March 14, 2022, the Company received its third milestone payment of $1,153,930.

&nbsp;&nbsp;&nbsp;&nbsp;**(b)** **Financing transactions** 

On January 14, 2022, the Company closed an additional USD$1.5 million in Notes (Note 13) under the same terms as its initial USD financing in 2021.

On May 27, 2022, the Company retired the related party promissory note payable of $480,000 by rolling it into the convertible debenture on the same terms as the USD Notes (see Note 13).

On September 09, 2022, the Company closed an additional USD$475,000 in Notes (Note 13) under the same terms as its initial USD financing in 2021.

On October 12, 2022, the Company received an investment of USD$100,000 in Security Purchase (Note 13) under the same terms as its initial USD financing in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;**(c)** **Operating transactions** 

On May 18, 2022, the Company entered into a long-term lease of Suite 2320, 140 – 4<sup>th</sup> Avenue S.W., Calgary, Alberta, Canada. At the time of the initial recognition, the Company recorded a right of use asset and corresponding lease liability of $480,573.

On April 19, 2022, the Company entered into a contract for management services to be rendered in 2022 for $120,000 per annum with a company owned by a member of our Board for a term of one year.

On June 16, 2022, the Company paid $50,000 of interest related to the related party financial guarantee disclosed in Note 23e.

On May 30, 2022, the Company divested itself of the underlying patent and related technology licensed to the Spinout Companies to Tangold Inc. The Company received consideration of 1,150,500 class A common voting shares in Tangold Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Common Shares**

**ADVEN INC.**![](cm281_f1img07.jpg)

**PRELIMINARY PROSPECTUS**

**, 2023**

***The Sole Book Running Manager***

**SPARTAN CAPITAL SECURITIES, LLC**

 **

![](cm281_f1img08.jpg)

**Until and including , 2023 (25 days after the date of this prospectus), all dealers that buy, sell, or trade the Common Shares, whether or not participating in this offering, may be required to deliver a prospectus. This delivery requirement is in addition to the dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to unsold allotments or subscriptions.** 

**PART II** - **INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 6. Indemnification of Directors and Officers.**

Alberta, Canada law does not limit the extent to which a company's articles of association may provide for indemnification of officers and directors, except to the extent any such provision may be held by the Alberta courts to be contrary to public policy, such as to provide indemnification against civil fraud or the consequences of committing a crime.

The Company's Bylaws provide that we shall indemnify our directors and officers (each an indemnified person) against all actions, proceedings, costs, charges, expenses, losses, damages or liabilities incurred or sustained by such indemnified person, other than by reason of such person's own dishonesty, willful default or fraud, in or about the conduct of our Company's business or affairs (including as a result of any mistake of judgment) or in the execution or discharge of his duties, powers, authorities or discretions, including without prejudice to the generality of the foregoing, any costs, expenses, losses or liabilities incurred by such indemnified person in defending (whether successfully or otherwise) any civil proceedings concerning our Company or its affairs in any court whether in Alberta or elsewhere.

Pursuant to the indemnification agreements, the form of which is filed as Exhibit 10.1 to this registration statement, we agreed to indemnify our directors and officers against certain liabilities and expenses incurred by such persons in connection with claims made by reason of their being such a director or officer.

The underwriting agreement, the form of which will be filed as Exhibit 1.1 to this registration statement, will also provide for indemnification by the underwriters and our officers and directors for certain liabilities.

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

**Item 7. Recent Sales of Unregistered Securities.**

During the past three years, we have issued the following securities (including options to acquire our Common Shares) without registering the securities under the Securities Act. We believe that each of the following issuances was exempt from registration pursuant to Section 4(2) of the Securities Act, regarding transactions not involving a public offering, or in reliance on Regulation S under the Securities Act regarding sales by an issuer in offshore transactions.

The Notes mature nine (9) months following the date of issuance or upon the occurrence of a public offering of Common Shares with a Company pre-money valuation of not less than USD$50 million, resulting in the listing for trading of the Common Shares on the NYSE American, Nasdaq, The Nasdaq Global Market, The Nasdaq Global Select Market or the New York Stock Exchange ("Liquidity Event"). The Notes may be extended by three (3) months if a Liquidity Event is in process and contemplated. The conversion price of the Notes is discounted from the share price for common shares at the Liquidity Event by 35%.

The Notes bear interest at 10% per annum payable and, upon maturity, increase to 15% if no Liquidity Event is in process or contemplated. The Notes are senior secured notes with specific security interest over all the assets of the Company excluding the intellectual property which has a prior contractual encumbrance under the grant agreement with SDTC.

The attached Warrant may be issued to Note holders following the conversion of the Notes to common shares. Note holders have the right to purchase up to 50% of the number of common shares issued upon the full conversion of the Note calculated using 100% of the original principal amount plus any actual unpaid accrued interest on the Note divided by the exercise price at the Liquidity Event (the "Exercise Price"). The purchase price of one common share under the Warrant is equal to the Exercise Price. In the event of default or the maturity date is extended, the Warrants increase to 75% of the number of common shares issued upon the full conversion of the Note. In addition, the Warrants contain anti-dilution provisions for Exercise Price reductions should the Company issue equity or equity-like instruments at a lower per share price than the Exercise Price in the future. The Warrants also contain a cash settlement provision based on the fair value of the Warrants in the event the Company sells more than 50% or more of its equities or assets. Warrants will not be issued if the Notes do not convert. There were no stock warrants granted nor exercised nor expired during the years ended December 31, 2022 and 2021.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Date Issued** | **Type of Security** | **Principal (USD)** | **Commission** |
| Oasis | 14-Dec-21 | Convertible Note | 500000.00 | 8.00% |
| Michael Bigger | 21-Dec-21 | Convertible Note | $1000000.00 | 8.00% |
| District 2 Capital | 21-Dec-21 | Convertible Note | 1000000.00 | 8.00% |
| GPL | 21-Dec-21 | Convertible Note | 500000.00 | 8.00% |
| Aikido Labs | 14-Jan-22 | Convertible Note | 750000.00 | 8.00% |
| The Spencer Martin Foley Trust | 14-Jan-22 | Convertible Note | 200000.00 | 8.00% |
| Xin Wang | 14-Jan-22 | Convertible Note | 120000.00 | 8.00% |
| Beverly Vorhees Foley Revocable Trust | 14-Jan-22 | Convertible Note | 100000.00 | 8.00% |
| Sarah Hassan | 14-Jan-22 | Convertible Note | 100000.00 | 8.00% |
| Brian Rhodes | 14-Jan-22 | Convertible Note | 50000.00 | 8.00% |
| Simon Becker | 14-Jan-22 | Convertible Note | 50000.00 | 8.00% |
| Emmis Capital | 14-Jan-22 | Convertible Note | 50000.00 | 8.00% |
| Li Te-Wei | 14-Jan-22 | Convertible Note | 50000.00 | 8.00% |
| Sanjoy Chatterjee | 14-Jan-22 | Convertible Note | 25000.00 | 8.00% |
| Kristopher Lakin | 14-Jan-22 | Convertible Note | 25000.00 | 8.00% |
| Dylan Hoffman | 14-Jan-22 | Convertible Note | 10000.00 | 8.00% |
| James Balk | 14-Jan-22 | Convertible Note | 10000.00 | 8.00% |
| Kenneth Greenburg | 14-Jan-22 | Convertible Note | 10000.00 | 8.00% |
| MMRB LLC | 14-Jan-22 | Convertible Note | 10000.00 | 8.00% |
| Terry Hoffman | 14-Jan-22 | Convertible Note | 10000.00 | 8.00% |
| 1367054 Alberta Ltd. | 27-May-22 | Convertible Note | 383806.29 |  |
| Greenburg Equity Investments, LLC | 09-Sep-22 | Convertible Note | 300000.00 | 8.00% |
| Orion 4, LLC | 09-Sep-22 | Convertible Note | 50000.00 | 8.00% |
| Michael Bartnicki | 09-Sep-22 | Convertible Note | 25000.00 | 8.00% |
| Proactive Capital Partners, LP | 09-Sep-22 | Convertible Note | 100000.00 | 8.00% |
| Grzegorz Ombach | 12-Sep-22 | Convertible Note | 100000.00 |  |
| Jason Montpetit | 17-Oct-22 | Convertible Note | 100000.00 |  |
| IRPC Holdings Corporation | 25-Nov-22 | Convertible Note | 25000.00 | - |
| **Total** |  |  | $**5653806.29** |  |

---

**Item 8. Exhibits and Financial Statement Schedules.**

**(a)** **Exhibits** 

The exhibits listed on the attached Exhibit Index are filed as a part of this registration statement.

**(b)** **Financial Statement Schedules** 

All schedules have been omitted because the information required to be set forth therein is not applicable or has been included in the consolidated financial statements and notes thereto.

**Item 9. Undertakings.**

The undersigned registrant hereby undertakes to provide to the underwriters at the closing specified in the underwriting agreements, certificates in such denominations and registered in such names as required by the underwriters to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the provisions described in Item 6, or otherwise, the registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) For purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) For the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit Number** | **Description of Document** |
| 1.1\* | Form of Underwriting Agreement |
| [2.1](cm281_ex2-1.htm) | [Share Exchange Agreement between AdvEn Industries Inc. and Nano Innovations Inc. dated September 28, 2021](cm281_ex2-1.htm) |
| [3.1](cm281_ex3-1.htm) | [Certificate of Incorporation of Nano Innovations Inc. dated November 9, 2017](cm281_ex3-1.htm) |
| [3.2](cm281_ex3-2.htm) | [Articles of Nano Innovations Inc. dated November 9, 2017](cm281_ex3-2.htm) |
| [3.3](cm281_ex3-3.htm) | [Certificate of Continuance dated July 27, 2022](cm281_ex3-3.htm) |
| [3.4](cm281_ex3-4.htm) | [Bylaws of AdvEn Inc. dated July 27, 2022](cm281_ex3-4.htm) |
| 4.1\* | Specimen Certificate evidencing Common Shares |
| 4.4\* | Form of Representative's Warrant (included in Exhibit 1.1) |
| 5.1\* | Opinion of Carmel, Milazzo & Feil LLP |
| 5.2\* | Opinion of McMillan LLP with respect to certain matters of Canadian Law |
| 10.1+\* | Form of Indemnification Agreement |
| [10.2](cm281_ex10-2.htm) | [Technology Acquisition Agreement between AdvEn Industries Inc. and Tangold Inc. dated February 5, 2021](cm281_ex10-2.htm) |
| [10.3](cm281_ex10-3.htm) | [Technology Acquisition Agreement between Adven Industries Inc. and Adven Bitmen Inc. dated February 5, 2021](cm281_ex10-3.htm) |
| [10.4](cm281_ex10-4.htm) | [Lease Agreement between Monarch Equities Inc. and AdvEn Industries Inc. dated on June 1, 2021](cm281_ex10-4.htm) |
| [10.5](cm281_ex10-5.htm) | [Lease Agreement between Aspen Properties (SLP) Ltd. and AdvEn Inc. (formerly Nano Innovations Inc.) and AdvEn Industries Inc. dated March 28, 2022](cm281_ex10-5.htm) |
| [10.6](cm281_ex10-6.htm) | [Project funding agreement with SDTC dated March 25, 2021](cm281_ex10-6.htm) |
| [10.7](cm281_ex10-7.htm) | [Investment Agreement with Alberta Innovates dated April 1, 2021](cm281_ex10-7.htm) |
| [10.8](cm281_ex10-8.htm) | [Investment Agreement Amendment dated June 1, 2021](cm281_ex10-8.htm) |
| [10.9](cm281_ex10-9.htm) | [Investment Agreement Amendment dated February 7, 2023](cm281_ex10-9.htm) |
| [10.10](cm281_ex10-10.htm) | [Assignable share repurchase agreement dated November 29, 2021](cm281_ex10-10.htm) |
| [10.11](cm281_ex10-11.htm) | [Licensing Agreement dated May 30, 2022](cm281_ex10-11.htm) |
| [10.12](cm281_ex10-12.htm) | [Management Service Agreement, between AdvEn Industries Inc. and Bitcan Geosciences & Engineering Inc. dated March 21, 2020](cm281_ex10-12.htm) |
| [10.13+](cm281_ex10-13.htm) | [Employment Agreement by and between AdvEn Inc. and Ronald Michael Steele, dated April 19, 2021](cm281_ex10-13.htm) |
| [21.1](cm281_ex21-1.htm) | [Subsidiaries of the Registrant](cm281_ex21-1.htm) |
| 23.1\* | Consent of RBSM LLP, Registered Independent Auditor |
| 23.2\* | Consent of Carmel, Milazzo & Feil LLP (included in Exhibit 5.1 above) |
| 23.3\* | Consent of McMillan LLP (included in Exhibit 5.2 above) |
| [24.1](#poa) | [Power of Attorney (included on the signature page hereto)](#poa) |
| 99.1\* | Code of Ethics and Business Conduct |
| 99.2\* | Audit Committee Charter |
| 99.3\* | Compensation Committee Charter |
| 99.4\* | Nominating and Corporate Governance Committee Charter |
| 107\* | Filing Fee Table |

---

\* To be filed by amendment. <br> + Indicates management contract or compensatory plan.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form F-1 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Calgary, the Province of Alberta, Canada on , 2023.

---

| |
|:---|
| **ADVEN INC.** |
| By: |
| Name: Dr. Yanguang Yuan |
| Title: Chief Executive Officer and Director |

---

**POWER OF ATTORNEY**

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Dr. Yanguang Yuan his true and lawful attorney-in-fact and agent, with full power of substitution and re-substitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments (including pre-effective amendments thereto) effective upon filing pursuant to Rule 462 under the Securities Act of 1933, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as full to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming that each said attorney-in-fact and agent or any of them or their or his or her substitutes may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
|  | Chief Executive Officer, and Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023 |
| Dr. Yanguang Yuan | (Principal Executive Officer) |  |
|  | Chief Financial Officer | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023 |
| Ronald Michael Steele | (Principal Financial Officer and Principal Accounting Officer) |  |
|  | Chairman of the Board | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023 |
| Dr. Grzegorz Ombach |  |  |
|  | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023 |
| John Meekison |  |  |
|  | Director | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2023 |
| Philip Chong |  |  |

---

**SIGNATURE OF AUTHORIZED UNITED STATES REPRESENTATIVE OF THE REGISTRANT**

Pursuant to the Securities Act of 1933, as amended, the undersigned, the duly authorized representative in the United States of ADVEN INC. has signed this registration statement or amendment thereto in City of New York on , 2023.

---

| |
|:---|
| **Authorized U.S. Representative** |
| By: |
| Name: |
| Title: |

---

## Exhibit 2.1

**Exhibit 2.1**

 

*Execution Version*

**SHARE EXCHANGE AGREEMENT**

**BY AND AMONG:**

**THE SHAREHOLDERS OF ADVEN INDUSTRIES INC.<br> AS SET FORTH ON <u>SCHEDULE A</u>**

**- and -** 

**ADVEN INDUSTRIES INC.**

**- and -**

**NANO INNOVATIONS INC.**

**Dated**

**September 28, 2021**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
|  | **Article 1** |  |
|  | **INTERPRETATION** |  |
| **1.1** | **Definitions** | **4** |
| **1.2** | **Headings** | **8** |
| **1.3** | **Extended Meanings** | **8** |
| **1.4** | **Conflicts** | **8** |
| **1.5** | **Interpretation if Closing does not Occur** | **8** |
| **1.6** | **Schedules** | **8** |
|  | **Article 2** |  |
|  | **AGREEMENT TO EXCHANGE AND PURCHASE PRICE** |  |
| **2.1** | **Purchase and Sale** | **8** |
| **2.2** | **Purchase Price** | **8** |
| **2.3** | **Closing** | **9** |
|  | **Article 3** |  |
|  | **acknowledgments** |  |
| **3.1** | **Securities Trade Restrictions** | **9** |
| **3.2** | **Tax Advice** | **9** |
|  | **Article 4** |  |
|  | **REPRESENTATIONS AND WARRANTIES** |  |
| **4.1** | **Representations and Warranties of the Shareholders** | **9** |
| **4.2** | **Representations and Warranties of AdvEn** | **10** |
| **4.3** | **Representations and Warranties of Nano** | **14** |
|  | **Article 5** |  |
|  | **INTERIM PERIOD COVENANTS** |  |
| **5.1** | **Interim Period Covenants of AdvEn** | **17** |
| **5.2** | **Interim Period Covenants of Nano** | **18** |
|  | **Article 6** |  |
|  | **CONDITIONS PRECEDENT** |  |
| **6.1** | **Conditions Precedent for the Benefit of AdvEn and the Shareholders** | **19** |
| **6.2** | **Conditions Precedent for the Benefit of Nano** | **22** |
|  | **Article 7** |  |
|  | **COMPULSORY ACQUISITION AND LOCK-UP PROVISIONS** |  |
| **7.1** | **Compulsory Acquisition** | **23** |
|  | **Article 8** |  |
|  | **TERMINATION** |  |
| **8.1** | **Termination Rights.** | **23** |
| **8.2** | **Effect of Termination** | **24** |

---

ii

---

| | | |
|:---|:---|:---|
|  | **Article 9** |  |
|  | **SURVIVAL OF REPRESENTATIONS AND WARRANTIES** |  |
| **9.1** | **Survival** | **24** |
|  | **Article 10** |  |
|  | **GENERAL PROVISIONS** |  |
| **10.1** | **Independent Legal Advice** | **25** |
| **10.2** | **Gender and Number** | **25** |
| **10.3** | **Waiver and Amendment** | **25** |
| **10.4** | **Confidentiality** | **25** |
| **10.5** | **Press Releases** | **26** |
| **10.6** | **Entirety of Agreement** | **26** |
| **10.7** | **Severance** | **26** |
| **10.8** | **Proper Law and Jurisdiction of Adjudication** | **26** |
| **10.9** | **Consent to Jurisdiction** | **26** |
| **10.10** | **Notice** | **27** |
| **10.11** | **Construction** | **28** |
| **10.12** | **Time of the Essence** | **28** |
| **10.13** | **Further Assurances** | **28** |
| **10.14** | **Non-Merger** | **28** |
| **10.15** | **Assignment and Enurement** | **28** |
| **10.16** | **Counterpart Execution** | **29** |

---

iii

*Execution Version*

**SHARE EXCHANGE AGREEMENT**

THIS AGREEMENT made this 28<sup>th</sup> day of September, 2021 (the **Effective Date**).

AMONG:

**THE SHAREHOLDERS OF ADVEN INDUSTRIES INC. AS SET FORTH ON <u>SCHEDULE A</u>** (collectively, the **Shareholders**, and in the singular, a **Shareholder**)

- and -

**ADVEN INDUSTRIES INC.,** a corporation incorporated under the *Business Corporations Act* (Alberta)*,* having a registered office at 9407-3 20 Avenue NW, Edmonton, Alberta T6N 1E5 (**AdvEn**)

- and -

**NANO INNOVATIONS INC.**, a corporation incorporated under the *Business Corporations Act* (British Columbia), having an executive office at c/o #30 – 850 Harbourside Drive, North Vancouver, British Columbia V7P 0A3 (**Nano**)

(Shareholders, AdvEn, and Nano, collectively, the **Parties**, and in the singular, a **Party**)

WHEREAS:

&nbsp;&nbsp;&nbsp;&nbsp;A. The Shareholders intend to complete a share consolidation of AdvEn whereby each one (1) common voting
share in the authorized capital of AdvEn (each an **AdvEn Share**) is to be consolidated into 0.6444936 AdvEn Shares (the **Consolidation**).

&nbsp;&nbsp;&nbsp;&nbsp;B. The Shareholders are the legal and beneficial owners of all of the issued and outstanding shares in the
authorized capital of AdvEn and all of such AdvEn Shares and the ownership thereof after giving effect to the Consolidation are more particularly
described in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;C. The Shareholders desire to sell to Nano, and Nano desires to acquire, all of the issued and outstanding
AdvEn Shares in exchange for an equal number of common voting shares in the authorized capital of Nano (the **Nano Shares**) on the
terms and subject to the conditions set forth in this Agreement.

NOW THEREFORE in consideration of the respective covenants, agreements, representations, warranties, and indemnities contained in this Agreement, and such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties covenant and agree as follows:

**Article 1<br> INTERPRETATION**

1.1 Definitions

In this Agreement and the recitals, the following words and phrases have the following respective meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **ABCA** means the *Business Corporations Act* (Alberta) and the regulations promulgated thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **AdvEn Financial Statements** means the audited financial statements of AdvEn dated December 31, 2020
and year-to-date internally prepared financial statements, in each case as disclosed to Nano in connection with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **AdvEn Shares** shall have the meaning ascribed in recital A to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Agreement** means this share exchange agreement and all amendments made to this Agreement in accordance
with <u>Section 10.3</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Applicable Laws** means all laws, statutes, rules, regulations, official directives and orders of
Government Authorities (whether administrative, regulatory, legislative, executive or otherwise) including applicable Securities Laws
and judgments, orders and decrees of courts, commissions or bodies exercising similar functions, as amended, and includes the provisions
and conditions of any permit, license or other governmental or regulatory authorization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **ASAC** means AdvEn's Intellectual Property relating to its "super activated carbon"
for supercapacitor, battery, filtration, and other industrial applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Claim** means any action, claim, demand, lawsuit, audit, proceeding or arbitration, including any
proceeding or investigation by a Government Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Closing** means the completion of all transactions and matters under this Agreement to occur on or
before the Closing Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Closing Day** means October 29, 2021 or such earlier or later time as AdvEn and Nano may agree to;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Closing Time** means 10:00 a.m. (Calgary time), on the Closing Day, or such earlier or later time
as AdvEn and Nano may agree to;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Consolidation** shall have the meaning ascribed in recital A to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Constating Documents** means the articles of incorporation, bylaws, memorandum of association, partnership
agreement or similar constating documents of a Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Contracts** means, with respect to any Person, any contracts, licences, leases, arrangements, agreements
and commitments of that Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **CRA** means the Canada Revenue Agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **ESAC** means AdvEn's Intellectual Property relating to "electrode super adhesive coating"
for battery, supercapacitor and other industrial applications;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Government Authority** means any government, regulatory or administrative authority, government department,
agency, commission, board or tribunal or court having jurisdiction on behalf of any nation, province or state or subdivision or any municipality,
district or subdivision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **IFRS** means the International Financial Reporting Standards as issued by the International Accounting
Standards Board and adopted in Canada, as applicable from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **Intellectual Property** means all trademarks, trade names, business names, patents, inventions, know-how,
trade secrets, copyrights, software, source code, object code, service marks, brand names, industrial designs and all other industrial
or intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **Interim Period** means the period of time between the Effective Date and the Closing Time or the
earlier termination of this Agreement in accordance with its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **KNP Payment** means a payment equal to CDN$200,000.00;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **Liabilities** means any and all liabilities and obligations, whether under common law, in equity,
under Applicable Laws or otherwise, whether tortious, contractual, vicarious, statutory or otherwise, whether absolute or contingent,
and whether based on fault, strict liability or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **Lien** means any mortgage, charge, Claim, pledge, hypothecation, security interest, assignment, lien
(statutory or otherwise), easement, title retention agreement or arrangement, option, penalty, royalty, burden, net profits interest,
carried working interest, conditional sale, deemed or statutory trust, restrictive covenant or other encumbrance of any nature or any
other arrangement or condition which, in substance, secures payment or performance of an obligation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **Losses** means all liabilities, costs, expenses and damages (whether direct or indirect), dues, penalties,
interest, fines, costs, amounts paid in settlement, obligations, taxes, liens, losses, expenses, and fees (including reasonable and documented
fees and disbursements of legal counsel and other professional advisors);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **Material Adverse Change** means any materially adverse change (or changes in the aggregate) (or any
condition, event or development involving a prospective change) in the business, operations, results of operations, assets, capitalization,
condition (financial or otherwise), licenses, Permits, concessions, rights, liabilities (contingent or otherwise), prospects or privileges,
whether contractual or otherwise, of AdvEn or of Nano, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **Material Adverse Effect** means a material adverse effect on the ownership, operation or financial
condition of the business or operations of AdvEn or of Nano, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **Nano Equity Offering** means the non-brokered private placement of 5,000,000 Nano Shares at a price
of $0.001 per share, completed by Nano prior to the date of this Agreement and which is subject to the terms of the Stock Restriction
Agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **Nano Financial Statements** means the internally prepared financial statements of Nano dated December
31, 2020 and the year-to-date financial statements as at Closing disclosed to AdvEn in connection with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **Nano Shareholders** means the holders of the Nano Shares and **Nano Shareholder** means any one
of such Persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **Nano Shares** shall have the meaning ascribed in recital C to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **Nano Stock Option Plan** means the rolling 10% stock option plan of Nano;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **Permits** means permits, licenses, approvals and authorizations issued or granted by Government Authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **Person** means and includes any individual, corporation, partnership, firm, joint venture, syndicate,
association, trust, government, government agency or board or commission or authority, and any other form of entity or organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **Qualified Financing** means the non-brokered private placement of convertible debt securities of
Nano for aggregate gross proceeds of not less than $5,000,000, on terms that are acceptable to AdvEn, acting reasonably;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) **Regulatory Approvals** means all approvals, consents and authorizations of all Government Authorities
and other regulators (including stock exchanges) reasonably necessary or desirable in connection with the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Securities Authorities** means the applicable securities commission or similar regulatory authorities
in Canada and each of the provinces and territories, in the United States and each of the states and in any other jurisdictions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) **Securities Laws** means all applicable Canadian provincial and territorial corporate and securities
laws, United States securities laws, the "blue sky" or securities laws of the states of the United States and any other applicable
corporate or securities laws *;* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) **Share Exchange Transaction** means the purchase of the AdvEn Shares from each of the Shareholders
by Nano in exchange for the issuance by Nano of one (1) Nano Share for each AdvEn Share so held by the Shareholders, in the numbers and
to the persons, more particularly described in <u>Schedule A</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) **Spin-Out Transaction** means the transaction completed by AdvEn prior to the date of this Agreement
whereby AdvEn transferred its carbon fibre technology to Tangold Inc. pursuant to a technology acquisition agreement and whereby AdvEn
transferred its solid bitumen technology to AdvEn Bitumen Innovation Inc. pursuant to another technology acquisition agreement and, pursuant
to which, the remaining Intellectual Property remaining in AdvEn after giving effect to the Spin-Out Transaction relates to ASAC and ESAC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) **Stock Restriction Agreements** means the stock restriction agreements required to be entered into
by each of the Nano Shareholders in connection with the closing of the Nano Equity Offering pursuant to which Nano will receive, among
other things, a right to repurchase the Nano Shares from such Nano Shareholders in the event that certain performance targets are not
satisfied which will be in the form substantially attached hereto at <u>Schedule B</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) **Tax Act** means the *Income Tax Act* (Canada) and the regulations promulgated thereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) **Third Party** means any Person other than AdvEn, Nano, and their respective affiliates and related
parties.

1.2 Headings

The division of this Agreement into Articles and Sections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement. The terms "this Agreement" and similar expressions refer to this Agreement and not to any particular Article, Section or other portion of this Agreement and include any supplemental agreement. Unless something in the subject matter or context is inconsistent, references to Articles and Sections are to Articles and Sections of this Agreement.

1.3 Extended Meanings

In this Agreement, unless the context requires otherwise, words importing the singular number only shall include the plural and vice versa, words importing the masculine gender shall include the feminine and neuter genders and vice versa, and words importing persons shall include individuals, partnerships, associations, trusts, unincorporated organizations and corporations.

1.4 Conflicts

Except as specifically provided, if there is any conflict or inconsistency between a provision of the body of this Agreement and that of a Schedule or a conveyance document, the provision of the body of this Agreement shall prevail.

1.5 Interpretation if Closing does not Occur

If Closing does not occur, each provision of this Agreement which presumes that Nano has acquired the AdvEn Shares shall be construed as having been contingent on Closing to have occurred.

1.6 Schedules

The following are the Schedules annexed and incorporated by reference and deemed to be part of this Agreement:

**SCHEDULES**

Schedule A AdvEn Shares <br> Schedule B Form of Stock Restriction Agreement <br> Schedule C AdvEn Disclosure

**Article 2<br> AGREEMENT TO EXCHANGE AND PURCHASE PRICE**

2.1 Purchase and Sale

2.2 Purchase Price

(1) The aggregate purchase price payable by Nano to the Shareholders at the Closing Time for the AdvEn Shares
shall be an aggregate of 26,000,000 Nano Shares, paid and satisfied by the issuance to the Shareholders of one (1) Nano Share for each
AdvEn Share held by the Shareholders, as more particularly described in <u>Schedule A</u>.

(2) Each of the Shareholders deals at arm's length with Nano and each Shareholder and Nano intend that
the sale of each of the Shareholder's AdvEn Shares in exchange for the Nano Shares be completed on a fully tax-deferred basis pursuant
to subsection 85.1(1) of the Tax Act.

2.3 Closing

(1) The sale and transfer of the AdvEn Shares and issuance of the Nano Shares shall be completed at the Closing
Time at the offices of AdvEn's solicitors, Lindsey MacCarthy LLP, 1400, 350 – 7th Ave SW Calgary, AB T2P 3N9. At the Closing
Time, certificates or acknowledgments representing the Nano Shares issuable to each of the Shareholders will be issued and allotted amongst
the Shareholders as set forth in <u>Schedule A</u> and shall be delivered by Nano to AdvEn (for delivery to the Shareholders post-Closing)
at the Closing Time against delivery to Nano of evidence of transfer of the AdvEn Shares into the name of Nano on the central securities
registry of AdvEn.

**Article 3<br> acknowledgments**

3.1 Securities Trade Restrictions

(1) The Shareholders and AdvEn acknowledge that they have not received advice or any representations from
Nano or on behalf of Nano (including by Nano's counsel) with respect to trading in the Nano Shares.

(2) The Shareholders and AdvEn further acknowledge and agree that the Nano Shares will be subject to certain
trade restrictions imposed by Securities Laws and Securities Authorities, which trade restrictions may include, but are not limited to,
a restricted period under applicable Canadian securities laws and legending of the trade restrictions on the certificates evidencing the
Nano Shares. As such, the Shareholders acknowledge that they may not be able to resell the Nano Shares except in accordance with limited
exemptions under applicable Securities Laws and regulatory policy and compliance with the other requirements of Applicable Law.

3.2 Tax Advice

(1) The Shareholders and AdvEn acknowledge that they have not received advice or any representations from
Nano or AdvEn or on behalf of Nano or AdvEn or from each of their respective professional advisors in respect of taxes payable pursuant
to the transactions contemplated in this Agreement and further acknowledge that they have been advised to seek independent counsel in
respect of such tax matters.

**Article 4<br> REPRESENTATIONS AND WARRANTIES**

4.1 Representations and Warranties of the Shareholders

(1) Effective as at the Effective Date and the Closing Time, each Shareholder represents and warrants to and
in favour of Nano that (and acknowledges that Nano is relying upon such representations and warranties in connection with the matters
contemplated by this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) they are the sole, full, and absolute legal and beneficial owner of, and have good and marketable title
to, the AdvEn Shares set opposite their respective name in <u>Schedule A</u> and such AdvEn Shares are fully paid and non-assessable and
are free and clear of Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) they have due and sufficient right and authority to enter into this Agreement on the terms and conditions
set forth and to transfer the legal and beneficial title and ownership of their AdvEn Shares to Nano;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this Agreement constitutes a valid and binding obligation on each of them; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with the exception of Kyle Kegang Wang, Chung Yue Pao and Pi-Cheng Lin Amy Pao and Yafei Ou (Alfred),
they are not a non-resident of Canada for the purposes of the Tax Act.

4.2 Representations and Warranties of AdvEn

(1) Unless otherwise expressly stated, effective as at the Effective Date and the Closing Time, AdvEn hereby
represents and warrants to and in favour of Nano that (and acknowledges that Nano is relying upon such representations and warranties
in connection with the matters contemplated by this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization</u>. AdvEn has been incorporated under the ABCA, is validly subsisting and has full corporate
or legal power and authority to own its assets and properties and to conduct its business as currently owned and conducted. AdvEn is registered,
licensed or otherwise appropriately qualified in each jurisdiction where the nature of the business or the location or character of the
assets and properties owned by it requires it to be so registered, licensed or otherwise qualified. To the knowledge of AdvEn, AdvEn has
not operated its business in contravention of applicable laws and regulations in such jurisdictions which will have a material adverse
effect on AdvEn in the aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authority</u>. As at the Effective Date and the Closing Time, AdvEn will have all necessary power,
authority and capacity to enter into this Agreement and all other agreements and instruments to be executed by AdvEn as contemplated by
this Agreement, and to perform its obligations under this Agreement and under such other agreements and instruments. As at the Closing
Time, the execution and delivery of this Agreement by AdvEn will be authorized by the directors of AdvEn and, on or before the Closing
Time, the completion by AdvEn of the Share Exchange Transaction will be authorized by the directors of AdvEn. As at the Closing Time,
this Agreement will have been executed and delivered by AdvEn and constitute a legal, valid and binding obligation of AdvEn, enforceable
against AdvEn in accordance with its terms, subject to bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium and other
applicable laws relating to or affecting creditors' rights generally, and to general principles of equity. The execution and delivery
by AdvEn of this Agreement and the performance by AdvEn of its obligations under this Agreement and the completion of the Share Exchange
Transaction contemplated hereby by the Closing Time, do not and will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) other than as disclosed in <u>Schedule C</u>, result in a violation, contravention or breach of, require
any consent to be obtained under or give rise to any termination rights under any provision of the constating documents of AdvEn, any
law or any contract, agreement, licence or permit to which AdvEn is bound or is subject to or of which AdvEn is the beneficiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) give rise to any right of termination or acceleration of indebtedness, or cause any indebtedness owing
by AdvEn to come due before its stated maturity or cause any available credit to cease to be available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) result in the imposition of any encumbrance upon any of the property or assets of AdvEn or restrict, hinder,
impair or limit the ability of AdvEn to conduct the business of AdvEn as and where it is now being conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) result in any material payment (including severance, unemployment compensation, "golden parachute",
bonus or otherwise) becoming due to any director or officer of AdvEn or increase any benefits otherwise payable under any pension or benefits
plan of AdvEn or result in the acceleration of the time of payment or vesting of any such benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) AdvEn is authorized to issue an unlimited number of AdvEn Shares without nominal or par value. As at the
Closing Date, there will be 26,000,000 AdvEn Shares issued and outstanding as set forth in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Other than as disclosed in <u>Schedule C</u>, as at the Closing Time, there are no options, conversion
privileges or other rights, agreements, arrangements or commitments (pre-emptive, contingent or otherwise) obligating AdvEn to issue or
sell any shares of AdvEn or any securities or obligations of any kind convertible into or exchangeable for any shares of AdvEn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As of the Effective Date and other than as disclosed in <u>Schedule C</u>, there are no outstanding bonds,
debentures, or other evidences of indebtedness of AdvEn. There are no outstanding contractual obligations of AdvEn to repurchase, redeem
or otherwise acquire any outstanding shares of AdvEn or with respect to the voting or disposition of any outstanding shares of AdvEn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Corporate Records</u>. Other than as disclosed in <u>Schedule C</u>, the corporate records and minute
book of AdvEn contain accurate minutes of all material resolutions approved by AdvEn's directors and shareholders held since its
formation and signed copies of all material resolutions passed or confirmed by AdvEn's directors. AdvEn has kept and maintained
such corporate records as are required under Applicable Laws, which records are accurate, complete, and up to date in all material respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Ordinary Course</u>. Since the date of the AdvEn Financial Statements, AdvEn has carried on its business
in the ordinary and normal course of its business and, other than the Spin-Out Transaction and the Consolidation, there has not been any
changes in the condition or operations of the business, assets or financial affairs of AdvEn which would, individually or in the aggregate,
create a Material Adverse Change or Material Adverse Effect, and there has not been any damage, destruction or loss, labour trouble or
other event or condition, of any character, other than the Spin-Out Transaction and the Consolidation, which is not generally known or
which has not been disclosed to Nano, which has or may create a Material Adverse Change or Material Adverse Effect on the future prospects
of AdvEn other than as disclosed in <u>Schedule C</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intellectual Property</u>. ASAC, ESAC and the Intellectual Property is the only intellectual property
owned or used by AdvEn in carrying on its business remaining after giving effect to the Spin-Out Transaction and all applications therefor
and all goodwill connected, including, without limitation, all licences, registered user agreements and all like rights of any kind whatsoever
used by or granted to AdvEn in connection therewith. As of the Closing Time, AdvEn is the beneficial owner of ASAC and ESAC free and clear
of all liens, charges or encumbrances of any kind whatsoever, and AdvEn is not a party to or bound by any agreement or other obligation
of any kind whatsoever that limits or impairs its ability to sell, transfer, assign or convey, or that otherwise materially affects, ASAC
or ESAC. No person has been granted any interest in or right to use all or any portion of ASAC or ESAC and AdvEn is not aware of a claim
of any infringement or breach of any industrial or intellectual property rights of any other person by AdvEn, nor has AdvEn received any
notice that the conduct of its business, including the use of ASAC or ESAC, infringes upon or breaches any industrial or intellectual
property rights of any other person, and AdvEn does not have any knowledge of any infringement or violation of any of their rights in
ASAC or ESAC. To the knowledge of AdvEn, the conduct of AdvEn's business does not infringe upon the patents, trademarks, licences,
trade names, business names, copyright or other industrial or intellectual property rights, domestic or foreign, of any other person and
AdvEn is not aware of any state of facts that casts doubt on the validity or enforceability of ASAC or ESAC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Liabilities</u>. Except for (i) Liabilities which are disclosed, reflected or adequately provided for
in the AdvEn Financial Statements or disclosed in <u>Schedule C</u>, or which need not be disclosed, reflected or adequately provided
for in the AdvEn Financial Statements pursuant to IFRS and (ii) Liabilities incurred in the ordinary course of business after the date
of the AdvEn Financial Statements, AdvEn has no absolute or contingent liabilities which are material to its affairs, business, prospects,
operations or condition, financial or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Shareholder Agreement</u>. There exists no unanimous shareholder agreement or other agreement which
affects the transferability of the AdvEn Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Contracts</u>. Other than the technology acquisition agreements entered into by AdvEn in connection
with the Spin-Out Transaction and other than as disclosed in <u>Schedule C</u>, AdvEn is not a party to or bound by any material Contract,
whether oral or written. No material default exists on the part of AdvEn or any other Party and to the knowledge of AdvEn, there is no
intention on the part of any Party to terminate or materially alter any such Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Management</u>. As at the date of this Agreement, the directors and officers of AdvEn are the following
individuals:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Directors:

WEIXING CHEN

PHILIP CHONG

KYLE KEGANG WANG

YANGUANG YUAN

QINGTAO TAN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Officers:

YANGUANG YUAN – Chief Executive Officer

WEIXING CHEN – Chief Technology Officer

PHILIP CHONG – Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Pension Plans.</u> AdvEn does not have any pension plans available for its employees as at the date
of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Claims and Judgments</u>. To the knowledge of AdvEn, there is not presently outstanding against AdvEn
any judgment, decree, injunction, rule or order of any court, Government Authority, commission, agency, instrumentality or arbitrator
and there are no claims, actions, suits or proceedings, having or reasonably capable of having a Material Adverse Effect or Material Adverse
Change, outstanding, pending or, to the best knowledge of AdvEn, threatened by or against or affecting AdvEn at law or in equity or before
or by any federal, provincial, municipal or other Governmental Authority, commission, board, bureau, agency or instrumentality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Compliance with Law</u>. AdvEn is not in default under Applicable Laws and has not failed to comply
with, perform, observe or satisfy, any term, condition, obligation or liability which has arisen under the provisions of Applicable Laws
which default or failure would reasonably be expected to have a Material Adverse Effect or Material Adverse Change on AdvEn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Taxes</u>. AdvEn:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has duly filed or caused to be filed in a timely manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all federal, state, provincial and local income tax returns and election forms and the tax returns of
any other jurisdiction required to be filed and all such returns and forms have been completed accurately and correctly in all respects;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) all corporation capital tax returns, and other reports and information required to be filed with all applicable
Government Authorities, agencies or regulatory bodies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has paid all taxes (including all federal, state, provincial and local taxes, assessments or other imposts
in respect of its income, business, assets or property) and all interest and penalties thereon with respect to AdvEn, for all previous
years and all required quarterly instalments due for the current fiscal year have been paid; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) is not party or subject to any agreement, waiver or other arrangement providing for an extension of time
with respect to the filing of any tax return, or payment of any tax, governmental charge or deficiency by AdvEn nor is there any Claim
now threatened or, to the knowledge of AdvEn, pending against AdvEn in respect of, or discussions underway with any Government Authority
relating to, any such tax or governmental charge or deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Insurance.</u> AdvEn maintains, and has maintained, insurance in force against loss on such assets,
against such risks, in such amounts and to such limits, as is in accordance with prudent business practices prevailing in its line of
business and has complied fully with all requirements of such insurance, including the prompt giving of any notice of any Claim or possible
Claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Third Party Notices</u>. AdvEn has not received from any Third Party notice of violation of or default
under any other obligation, agreement, document, order, writ, injunction or decree of any Government Authority that relates to business
of AdvEn and, to the knowledge of AdvEn, no particular circumstance presently exists which may give rise to any such violation or default;

(2) Any investigation by Nano and its advisors shall not mitigate, diminish, or affect the representation
and warranties of AdvEn provided pursuant to this Agreement.

4.3 Representations and Warranties of Nano

(1) Effective as at the Effective Date and the Closing Time, Nano hereby represents and warrants to and in
favour of the Shareholders and AdvEn that (and acknowledges that the Shareholders and AdvEn are relying upon such representations and
warranties in connection with the matters contemplated by this Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Organization</u>. Nano has been incorporated under the *Business Corporations Act* (British Columbia),
is validly subsisting and has full corporate or legal power and authority to own its assets and properties and to conduct its business
as currently owned and conducted. Nano is registered, licensed or otherwise appropriately qualified in each jurisdiction where the nature
of the business or the location or character of the assets and properties owned by it requires it to be so registered, licensed or otherwise
qualified. To the knowledge of Nano, Nano has not operated its business in contravention of applicable laws and regulations in such jurisdictions
which will have a material adverse effect on Nano in the aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Authority</u>. Nano has all necessary power, authority and capacity to enter into this Agreement and
all other agreements and instruments to be executed by Nano as contemplated by this Agreement, and to perform its obligations under this
Agreement and under such other agreements and instruments. The execution and delivery of this Agreement by Nano has been authorized by
the directors of Nano and, on or before the Closing Time, the completion by Nano of the Share Exchange Transaction will be authorized
by the directors of Nano. This Agreement has been executed and delivered by Nano and constitutes a legal, valid and binding obligation
of Nano, enforceable against Nano in accordance with its terms, subject to bankruptcy, insolvency, reorganization, fraudulent transfer,
moratorium and other applicable laws relating to or affecting creditors' rights generally, and to general principles of equity.
The execution and delivery by Nano of this Agreement and the performance by Nano of its obligations under this Agreement and the completion
of the Share Exchange Transaction contemplated hereby, do not and will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) result in a violation, contravention or breach of, require any consent to be obtained under or give rise
to any termination rights under any provision of the constating documents of Nano, any law, including, but not limited to, Securities
Laws, or any contract, agreement, licence or permit to which Nano is bound or is subject to or of which Nano is the beneficiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) give rise to any right of termination or acceleration of indebtedness, or cause any indebtedness owing
by Nano to come due before its stated maturity or cause any available credit to cease to be available;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) result in the imposition of any encumbrance upon any of the property or assets of Nano or restrict, hinder,
impair or limit the ability of Nano to conduct the business of Nano as and where it is now being conducted; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) result in any material payment (including severance, unemployment compensation, "golden parachute",
bonus or otherwise) becoming due to any director or officer of Nano or increase any benefits otherwise payable under any pension or benefits
plan of Nano or result in the acceleration of the time of payment or vesting of any such benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Capitalization</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Nano is authorized to issue an unlimited number of Nano Shares without par value. As of the Closing Date,
up to a maximum of 7,444,444 Nano Shares will be issued and outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Other than the Nano Stock Option Plan and other than in connection with the Qualified Financing, there
are no options, conversion privileges or other rights, agreements, arrangements or commitments (pre-emptive, contingent or otherwise)
obligating Nano to issue or sell any shares of Nano or any securities or obligations of any kind convertible into or exchangeable for
any shares of Nano.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) As of the date of this Agreement, there are no outstanding bonds, debentures or other evidence of indebtedness
of Nano. There are no outstanding contractual obligations of Nano to repurchase, redeem or otherwise acquire any outstanding shares of
Nano or with respect to the voting or disposition of any outstanding shares of Nano.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Corporate Records</u>. The corporate records and minute book of Nano contain complete and accurate
minutes of all meetings of Nano's directors and shareholders held since its formation and signed copies of all resolutions and articles
passed or confirmed by Nano's directors. All such meetings were duly called and held and Nano has kept and maintained such corporate
records as are required under Applicable Laws, which records are accurate, complete and up to date in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Ordinary Course</u>. Since the date of the Nano Financial Statements, Nano has carried on its business
in the ordinary and normal course of its business, and, other than the Nano Equity Offering, the execution and delivery of the Stock Restriction
Agreements and the Qualified Financing, there has not been any changes in the condition or operations of the business, assets or financial
affairs of Nano which would, individually or in the aggregate, create a Material Adverse Change or Material Adverse Effect, and there
has not been any damage, destruction or loss, labour trouble or other event or condition, of any character, other than the Nano Equity
Offering, the execution and delivery of the Stock Restriction Agreements and the Qualified Financing, which is not generally known or
which has not been disclosed to AdvEn, which has or may create a Material Adverse Change or Material Adverse Effect on the future prospects
of Nano.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Intellectual Property</u>. Nano does not own or use any registered trademarks, patents, inventions,
copyrights, software, source code or object code in its business and operations and there is no intellectual property which is material
to the operation of the business of Nano.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Liabilities</u>. Except for (i) Liabilities which are disclosed, reflected or adequately provided for
in the Nano Financial Statements, or which need not be disclosed, reflected or adequately provided for in the Nano Financial Statements
pursuant to IFRS and (ii) Liabilities incurred in the ordinary course of business after the date of the Nano Financial Statements, Nano
has no absolute or contingent liabilities which are material to its affairs, business, prospects, operations or condition, financial or
otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>No Shareholder Agreement</u>. Other than the Stock Restriction Agreements, there exists no unanimous
shareholder agreement or other agreement which affects the transferability of the Nano Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Contracts</u>. Other than the Stock Restriction Agreements, the executive employment agreement as between
Nano and its Chief Financial Officer, a contract entered into by Nano with Haywood Securities Inc. and a contract anticipated to be entered
into by Nano with Spartan Capital Securities, LLC, in respect of which each such contract has been disclosed in full to AdvEn prior to
the Closing Date, Nano is not a party to or bound by any material Contract, whether oral or written. No material default exists on the
part of Nano or any other Party and to the knowledge of Nano, there is no intention on the part of any Party to terminate or materially
alter any such Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Management</u>. As at the date of this Agreement, the directors and officers of Nano are the following
individuals:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Directors:

ARNI JOHANNSON

JOHN MEEKISON

INGO MUELLER

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Officers:

ARNI JOHANNSON – President

INGO MUELLER – Secretary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R. MICHAEL STEELE – Chief Financial Officer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Benefit Plans.</u> Nano does not have any pension plans or benefit plans available for its employees
as at the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) <u>Licenses.</u> Nano holds all licenses, authorizations and Permits required by law in relation to the
business carried on by Nano.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Claims and Judgments</u>. To the knowledge of Nano, there is not presently outstanding against Nano
any judgment, decree, injunction, rule or order of any court, Government Authority, commission, agency, instrumentality or arbitrator
and there are no claims, actions, suits or proceedings, having or reasonably capable of having a Material Adverse Effect or Material Adverse
Change, outstanding, pending or, to the best knowledge of Nano, threatened by or against or affecting Nano at law or in equity or before
or by any federal, provincial, municipal or other Governmental Authority, commission, board, bureau, agency or instrumentality.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Compliance with Law</u>. Nano is not in default under Applicable Laws and has not failed to comply
with, perform, observe or satisfy, any term, condition, obligation or liability which has arisen under the provisions of Applicable Laws
which default or failure would reasonably be expected to have a Material Adverse Effect or Material Adverse Change on Nano.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Nano Shares</u>. The Nano Shares to be issued to the Shareholders pursuant to this Agreement shall,
upon issuance, be duly and validly issued as fully paid and non-assessable shares in the capital of Nano.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Taxes</u>. Nano:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has duly filed or caused to be filed in a timely manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) all federal, state, provincial and local income tax returns and election forms and the tax returns of
any other jurisdiction required to be filed and all such returns and forms have been completed accurately and correctly in all respects;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) all corporation capital tax returns, and other reports and information required to be filed with all applicable
Government Authorities, agencies or regulatory bodies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has paid all taxes (including all federal, state, provincial and local taxes, assessments or other imposts
in respect of its income, business, assets or property) and all interest and penalties thereon with respect to Nano, for all previous
years and all required quarterly instalments due for the current fiscal year have been paid; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) is not a party or subject to any agreement, waiver or other arrangement providing for an extension of
time with respect to the filing of any tax return, or payment of any tax, governmental charge or deficiency by Nano nor is there any Claim
now threatened or pending against Nano in respect of, or discussions underway with any Government Authority relating to, any such tax
or governmental charge or deficiency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Insurance.</u> Nano has no active business operations which would require insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Third Party Notices</u>. Nano has not received from any Third Party notice of violation of or default
under any other obligation, agreement, document, order, writ, injunction or decree of any Government Authority that relates to business
of Nano and, to the knowledge of Nano, no particular circumstance presently exists which may give rise to any such violation or default.

(2) Any investigation by AdvEn, the Shareholders and/or their respective advisors shall not mitigate, diminish
or affect the representation and warranties of Nano provided pursuant to this Agreement.

**Article 5<br> INTERIM PERIOD COVENANTS**

5.1 Interim Period Covenants of AdvEn

(1) During the Interim Period, AdvEn covenants to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cooperate fully with Nano;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take all reasonable action to support the transactions contemplated herein (including providing Nano with
such reasonable assistance as Nano or its agents may reasonably request in connection with communicating the transactions contemplated
herein, and any amendments or supplements thereto, to the Shareholders) and to use all commercially reasonable efforts to satisfy or cause
to be satisfied as soon as practicable each of the conditions set forth in Section 6.2 hereto as are within its control including, but
not limited to, the completion of the Spin-Out Transaction. Without limiting the generality of the foregoing, AdvEn will use reasonable
commercial efforts to cause all of the Shareholders to agree to sell their AdvEn Shares to Nano as contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use reasonable commercial efforts to complete the Share Exchange Transaction and not take any action contrary
to or in opposition to the Share Exchange Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) subject to compliance with applicable laws and policies, AdvEn shall notify Nano of any significant development
or material change relating to its business, operations, assets or prospects, promptly after becoming aware of any such development or
change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ensure that, except with the prior written consent of Nano or as otherwise expressly agreed to in this
Agreement, AdvEn will not do, or permit to occur any action or fail to take any action that is intended to, or would reasonably be expected
to, individually or in the aggregate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) result in any action which is outside of the ordinary course of business of AdvEn and not consistent with
past practices provided that Nano acknowledges and agrees that during the Interim Period AdvEn is expressly permitted to make the KNP
Payment to the KNP Group Inc. in order to satisfy all indebtedness owed to such creditor in respect of the indebtedness disclosed in Section
3 of <u>Schedule C</u> and to obtain a release and discharge of any and all security procured by such creditor in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) result in a material change relating to the business, operations, assets or prospects of AdvEn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prevent, delay or impede AdvEn's ability to consummate the Share Exchange Transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) adversely impact the desire of Nano to complete the Share Exchange Transaction.

5.2 Interim Period Covenants of Nano

(1) During the Interim Period, Nano covenants to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) cooperate fully with AdvEn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) take all reasonable action to support the transactions contemplated herein and to use all commercially
reasonable efforts to satisfy or cause to be satisfied as soon as practicable each of the conditions set forth in Section 6.1 hereto as
are within its control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use reasonable commercial efforts to complete the Nano Equity Offering, the Qualified Financing and the
Share Exchange Transaction and not take any action contrary to or in opposition to the completion of the Nano Equity Offering, the Qualified
Financing and the Share Exchange Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) subject to compliance with applicable laws and policies, Nano shall notify AdvEn of any significant development
or material change relating to its business, operations, assets or prospects, promptly after becoming aware of any such development or
change;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) ensure that, except with the prior written consent of AdvEn (on behalf of itself and the Shareholders)
or as otherwise expressly agreed to in this Agreement, Nano will not do, or permit to occur any action or fail to take any action that
is intended to, or would reasonably be expected to, individually or in the aggregate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) result in any action which is outside of the ordinary course of business of Nano and not consistent with
past practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) result in a material change relating to the business, operations, assets or prospects of Nano;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) prevent, delay or impede Nano's ability to consummate the Share Exchange Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) adversely impact the desire of the Shareholders to complete the Share Exchange Transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) shall not take any action or fail to take any action that is intended to, or would reasonably be expected
to, individually or in the aggregate, prevent, materially delay or materially impede its ability to consummate the Share Exchange Transaction.

**Article 6<br> CONDITIONS PRECEDENT**

6.1 Conditions Precedent for the Benefit of AdvEn and the Shareholders

(1) The obligations of AdvEn and the Shareholders to complete the transactions provided for in this Agreement
are subject to the following conditions precedent, which are for the exclusive benefit of AdvEn and the Shareholders, being fulfilled
or waived in writing by AdvEn (on behalf of itself and the Shareholders) at or prior to Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all of the representations and warranties of Nano in this Agreement shall be true and correct in all material
respects as at the Closing Time and Nano shall have delivered a bring-down certificate to AdvEn, in form reasonably satisfactory to AdvEn,
certifying the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Nano shall have complied with all obligations on its part under this Agreement required to be performed
at or before the Closing Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) AdvEn shall have obtained any and all such approvals as may be reasonably required in connection with
the completion of the Spin-Out Transaction and the Share Exchange Transaction including, but not limited to, resolutions of the board
of directors and the shareholders of AdvEn as required by Applicable Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Shareholders holding, in aggregate, not less than 90% of the AdvEn Shares will have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) executed and delivered a counterpart of this Agreement to AdvEn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) tendered each of their respective share certificates representing the applicable number of AdvEn Shares;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) executed and delivered a securities transfer power of attorney in favour of Nano;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At or before the Closing Time, Nano shall have delivered to AdvEn the following, each in form and substance
satisfactory to AdvEn, acting reasonably:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) share certificates representing the Nano Shares respectively issued to the Shareholders in the respective
numbers set forth in Schedule A, such share certificates to be in the form as required by Applicable Laws and the Constating Documents
of Nano, provided that Nano may furnish separate share certificates representing those Nano Shares which are subject to the Stock Restriction
Agreements and those Nano Shares which are not subject to the Stock Restriction Agreements or in such other manner as may be reasonably
agreed to between Nano and AdvEn and further provided that all such share certificates will be retained by Nano within its minute book
and copies of such certificates circulated to the Shareholders if so requested;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) certified copies 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;(A) the Constating Documents of Nano;

&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 resolutions of the directors of Nano approving the Nano Equity Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the resolutions of the directors of Nano approving the Qualified Financing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a resolution of the directors of Nano approving: (a) the entering into and completion of the transactions
contemplated in this Agreement; (b) authorizing the name change of Nano after Closing to "AdvEn Innovations Inc." or such
other name as is mutually agreeable to AdvEn and Nano, each acting reasonably; (c) appointing Yanguang Yuan as the Chief Executive Officer
and President of Nano, Weixing Chen as the Chief Technology Officer of Nano and Ingo Mueller as the Corporate Secretary of Nano; and (d)
fixing the board of directors of Nano on a post-Closing basis to five directors with Arni Johannson and John Meekison being nominated
by the Nano Shareholders and Yanguang Yuan, Weixing Chen and Philip Chong being nominated by the Shareholders provided that Yanguang Yuan
will also be elected as the Chairman of the board of directors of Nano post-Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) a list of the officers and directors of Nano authorized to sign agreements and any certificates, transfers,
and other writings in respect of the transactions contemplated by this Agreement, together with their specimen signatures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) certificate of good standing with respect to Nano issued by the appropriate Government Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) a certificate from an officer of Nano confirming that Nano has completed the Nano Equity Offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a certificate from an officer of Nano confirming that Nano has completed the Qualified Financing and that
concurrently with the Closing an amount equal to CDN$350,000.00 received by Nano in connection with such Qualified Financing will be distributed
by Nano directly to AdvEn in an amount equal to the KNP Payment and the remainder will be distributed directly to 1367054 Alberta Ltd.
towards repayment of the indebtedness disclosed in Section 3 of <u>Schedule C;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) copies of the executed Stock Restriction Agreements entered into by Nano with each of the Nano Shareholders
providing for restrictions on the transfer, trading and/or disposition of the Nano Shares until such time applicable performance targets
are satisfied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) copies of the release and no interest letter in a form reasonably satisfactory to AdvEn and Nano executed
by each of Xiaojin Liu and Tianfei Wang;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) copy of a release and discharge, in form reasonably satisfactory to AdvEn and Nano, executed by KNP Group
Inc. in connection with the repayment by or on behalf of AdvEn to such creditor of all indebtedness as disclosed in Section 3 of <u>Schedule C</u> together with the discharge of any and all security procured in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a copy of a receipt executed by Nano in respect of its receipt of the AdvEn Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) executed resignation as director of Nano from Ingo Mueller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) executed consent to act as director of Nano from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Arni Johannson; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) John Meekison;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) executed consent to act as a director of AdvEn from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Arni Johannson; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) John Meekison;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) executive employment agreements executed by Nano and each of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Yanguang Yuan, as Chief Executive Officer, President, and Chairman;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Weixing Chen, as Chief Technology Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Ingo Mueller, as Corporate Secretary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) R. Michael Steele, as Chief Financial Officer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) such other Persons as may be appointed as executive employees of Nano as of the Closing Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) director and officer indemnity agreements executed by Nano and each of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Yanguang Yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Weixing Chen;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Ingo Mueller;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) R. Michael Steele;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Arni Johannson;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) John Meekison; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) such other Persons as may be appointed as directors and/or officers of Nano as of the Closing Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) such other conditions as AdvEn (on behalf of itself and the Shareholders) may reasonably require for the
Closing.

6.2 Conditions Precedent for the Benefit of Nano

(1) The obligations of Nano to complete the transactions provided for in this Agreement are subject to the
following conditions precedent, which are for the exclusive benefit of Nano, being fulfilled or waived in writing by Nano at or prior
to Closing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all of the representations and warranties of AdvEn in this Agreement shall be true and correct in all
material respects as at the Closing Time and AdvEn shall have delivered a bring-down certificate to Nano, in form reasonably satisfactory
to Nano, certifying the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) AdvEn shall have complied with all obligations on its part under this Agreement required to be performed
at or before the Closing Time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Shareholders holding, in aggregate, not less than 90% of the AdvEn Shares will have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) executed and delivered a counterpart of this Agreement to AdvEn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) tendered each of their respective share certificates representing the applicable number of AdvEn Shares;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) executed and delivered a securities transfer power of attorney in favour of Nano;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At or before the Closing Time, AdvEn shall have delivered to Nano the following, each in form and substance
satisfactory to Nano, acting reasonably:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) evidence of transfer of an aggregate of at least 90% of the AdvEn Shares into the name of Nano on the
registry of AdvEn maintained by Lindsey MacCarthy LLP together with a share certificate representing 90% or more of the AdvEn Shares issued
in the name of Nano;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) certified copies 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;(A) the Constating Documents of AdvEn;

&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 resolutions of the directors of AdvEn approving the Spin-Out Transaction;

&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) a resolution of the directors of AdvEn approving the entering into and completion of the transactions
contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) a list of the officers and directors of AdvEn authorized to sign agreements and any certificates, transfers,
and other writings in respect of the transactions contemplated by this Agreement, together with their specimen signatures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) certificate of status with respect to AdvEn issued by the appropriate Government Authority;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a certificate from an officer of AdvEn in form reasonably satisfactory to Nano confirming that AdvEn has
completed the Spin-Out Transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) copies of a subordination and standstill agreement in a form reasonably satisfactory to Nano executed
by 1367054 Alberta Ltd. in connection with the indebtedness of AdvEn to such creditor as disclosed in Section 3 of <u>Schedule C;</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) copy of a release and discharge, in form reasonably satisfactory to AdvEn and Nano, executed by KNP Group
Inc. in connection with the repayment by or on behalf of AdvEn to such creditor of all indebtedness as disclosed in Section 3 of <u>Schedule C</u> together with the discharge of any and all security procured in connection therewith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) executed resignation as a director of AdvEn from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Kyle Kegang Wang.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) executed consent to act as a director of Nano from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Yanguang Yuan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Weixing Chen; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Philip Chong.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) such other conditions as Nano may reasonably require for the Closing.

**Article 7<br> COMPULSORY ACQUISITION AND LOCK-UP PROVISIONS**

7.1 Compulsory Acquisition

(1) The Parties acknowledge and agree that this Agreement constitutes a "take-over bid" in respect
of the AdvEn Shares as that term is defined in section 194(g) of the ABCA. If Shareholders holding 90% or more of the AdvEn Shares but
less than 100% of the AdvEn Shares agree to sell their Shares to Nano as contemplated by Section 6.1(1)(d) and 6.2(1)(c) of this Agreement
and all other conditions of this Agreement are satisfied or waived as contemplated herein, then Nano shall be required to issue the requisite
number of Nano Shares in exchange for the applicable number of AdvEn Shares and Nano may proceed to acquire the balance of the AdvEn Shares
as soon as practicable by way of the compulsory acquisition provisions set forth in Part 16 of the ABCA.

**Article 8<br> TERMINATION**

8.1 Termination Rights.

(1) This Agreement may, by notice in writing given prior to or on Closing, be terminated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) by mutual consent of Nano and AdvEn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by AdvEn (on behalf of itself and the Shareholders) if any of the conditions in Section 6.1 have not been
satisfied at or prior to Closing and AdvEn has not waived such condition at or prior to Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by Nano if any of the conditions in Section 6.2 have not been satisfied at or prior to Closing and Nano
has not waived such condition at or prior to Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by either AdvEn or Nano if the Closing has not occurred on or before October 15, 2021 or such later date
as AdvEn and Nano agree to in writing, unless the Closing has not occurred by such date because the Party seeking to terminate this Agreement
has failed to perform any one or more of its material obligations or covenants under this Agreement to be performed at or prior to Closing;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) by either AdvEn or Nano if there has been a material breach of any provision of this Agreement by the
other Party which has not been cured by the Party in breach within 15 days of such breach and such breach has not been waived by the non-breaching
Party.

8.2 Effect of Termination

If this Agreement is terminated pursuant to Section 8.1, all obligations of the Parties under this Agreement will terminate, except that if this Agreement is terminated by a Party because of a breach of this Agreement by the other Party or because a condition for the benefit of the terminating Party has not been satisfied because the other Party has failed to perform any of its obligations or covenants under this Agreement, the terminating Party's right to pursue all legal remedies will survive such termination unimpaired.

**Article 9<br> SURVIVAL OF REPRESENTATIONS AND WARRANTIES**

9.1 Survival

(1) The representations and warranties of the Shareholders in Section 4.1 of this Agreement shall survive
for a period of six months after the Closing Date.

(2) The representations and warranties of AdvEn in Section 4.2 of this Agreement shall survive for a period
of six months after the Closing Date.

(3) The representations and warranties of Nano in Section 4.3 of this Agreement shall survive for a period
of six months after the Closing Date.

(4) The Parties agree that no Claim may be brought by any of the Parties for misrepresentation or breach of
warranty after the date that is six months following the Closing Date.

(5) The Parties each acknowledge and agree that, except for the representations and warranties in Article 4
of this Agreement, the Share Exchange Transaction is occurring on an "as-is where-is" basis and each Party is relying solely
on its own advisors and legal counsel and its own investigations and due diligence and that it has made, or has had others make, such
evaluations and inspections as it deems necessary or appropriate and it is not relying on any statement by or discussions with any of
the other Parties (or their respective advisors and/or legal counsel).

**Article 10<br> GENERAL PROVISIONS**

10.1 Independent Legal Advice

(1) Each Party acknowledges and agrees that Lindsey MacCarthy LLP:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) has acted as legal counsel to 1367054 Alberta Ltd., BitCan Geosciences and Engineering Inc., and AdvEn
on various matters prior to the date of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) has acted as legal counsel to AdvEn (and only AdvEn) in connection with the preparation and negotiation
of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) will act as legal counsel 1367054 Alberta Ltd., BitCan Geosciences and Engineering Inc., AdvEn, Nano,
Tangold Inc. and AdvEn Bitumen Innovation Inc. from time to time after the date of this Agreement on various matters.

(2) In connection with Section 10.1(1) each Party hereby irrevocable waives and agrees not to assert any Claim
of conflict of interest arising from or in connection with: (a) Lindsey MacCarthy LLP's prior representation of 1367054 Alberta Ltd.,
BitCan Geosciences and Engineering Inc., and AdvEn; and (b) Lindsey MacCarthy LLP's representation of 1367054 Alberta Ltd., BitCan Geosciences
and Engineering Inc., AdvEn, Nano, Tangold Inc. and AdvEn Bitumen Innovation Inc. from time to time after the date of this Agreement on
various matters.

(3) Each Party represents, warrants, acknowledges, and agrees that it: (a) has obtained independent legal
advice in respect of the Share Exchange Transaction and its respective rights and obligations under this Agreement and in connection with
the agreements and instruments to be entered into or delivered hereunder; or, in the alternative, (b) acknowledges, confirms and agrees
that it has had the opportunity to seek and was not prevented nor discouraged by any Party from seeking independent legal advice prior
to the execution and delivery of this Agreement and that, in the event it did not avail itself of that opportunity prior to the signing
of this Agreement, it did so voluntarily without any undue pressure and agrees that its failure to obtain independent legal advice should
not be used by it as a defence to the enforcement of its obligations under this Agreement.

10.2 Gender and Number

The provisions of this Agreement shall be read with all changes in gender and number as may be required by the context.

10.3 Waiver and Amendment

This Agreement may only be amended by further written agreement executed and delivered by AdvEn, Nano, and the Shareholders. No waiver or consent by a Party of or to any breach or default by another Party shall be effective unless evidenced in writing, executed and delivered by the Party so waiving or consenting. No such waiver or consent shall operate as a waiver of or consent to any further or other breach or default in relation to the same or any other provision of this Agreement.

10.4 Confidentiality

Except with the prior written consent of the other Parties, each Party and their respective employees, officers, directors, shareholders, agents, advisors and other representatives will not disclose to anyone other than their professional advisors and will hold all information received from the other Parties in the strictest confidence, except such information and documents which: (i) are or subsequently may become generally available to the public through no breach of this Agreement; (ii) are required to be disclosed by applicable law or regulatory body; (iii) are available on a non-confidential basis prior to their disclosure to the other Parties; (iv) become available to one Party on a non-confidential basis from a source other than the other Parties provided that such other source is not bound by a confidentiality agreement with the other Parties; or (v) are independently developed. The Parties recognize that Nano may have a duty to disclose certain aspects of this Agreement under applicable Securities Laws and, in such event, Nano shall obtain the prior written consent of AdvEn, acting reasonably, to any such disclosure and the contents unless otherwise required by Applicable Laws or regulatory body.

10.5 Press Releases

(1) Neither Nano nor AdvEn will make any press release respecting the existence of this Agreement, the contents
or the transaction contemplated hereby without the consent of the other except to the extent the other unreasonably withholds or delays
consent; provided however, the foregoing shall not restrict public disclosure by any Party as required by Applicable Laws.

(2) Each of Nano and AdvEn shall each be liable for the compliance of its respective related parties with
the terms of this Section. Where either Nano or AdvEn proposes to make such a press release, it shall, to the extent reasonably possible,
provide the other Party with a draft of that release at least one business day prior to its release to enable the other Party to review
that draft and advise of any comments it may have with respect. The Party proposing to make the press release will not unreasonably refuse
to incorporate the requested changes in the public announcement except to the extent its counsel advises that doing so will result in
non-compliance with Applicable Laws.

10.6 Entirety of Agreement

This Agreement contains the entire agreement among the Parties with respect to the matters of agreement, and the Parties acknowledge and agree that there are no oral or other written agreements, undertakings, promises, conditions, representations or warranties respecting the matters of agreement.

10.7 Severance

If any provision of this Agreement is judicially determined to be void, illegal or unenforceable, such provision shall be ineffective to the extent of such voidness, illegality or unenforceability, but without invalidating or affecting the validity or enforceability of any of the remaining provisions of this Agreement.

10.8 Proper Law and Jurisdiction of Adjudication

This Agreement shall be construed in accordance with the laws of Alberta and the federal laws of Canada applicable therein.

10.9 Consent to Jurisdiction

(1) Each of the Parties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) irrevocably attorns and submits to the exclusive jurisdiction of each court of competent jurisdiction
sitting in Calgary, Alberta in any Claim arising out of or related to this Agreement and irrevocably agrees that all Claims may be heard
and determined in that Alberta court;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) irrevocably waives, to the fullest extent it may effectively do so, the defense of an inconvenient forum
to the maintenance of any such Claim; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) agrees that a final judgment in any such Claim shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by Applicable Laws.

10.10 Notice

All notices and other communications required or permitted pursuant to or in relation to this Agreement shall be in writing and shall be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) personally served upon the addressee (if an individual) or an officer or director of the addressee (if
a body corporate), in which case such notice or other communication shall be conclusively deemed to have been given to the addressee at
the time of such service; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) emailed and/or sent by postage prepaid first class mail addressed to the addressee at the following respective
addresses:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For AdvEn or the Shareholders:

Adven Industries Inc.<br> 9407-3 20 Avenue NW<br> Edmonton, Alberta T6N 1E5

Attention: Yanguang Yuan<br> Email: yanguang.yuan@adven-industries.com

With a copy to:

Lindsey MacCarthy LLP<br> 1400, 350 – 7th Ave SW<br> Calgary, AB T2P 3N9

Attention: Cameron MacCarthy<br> Email: <u>cmaccarthy@linmac.com</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For Nano:

AdvEn Innovations Inc. (formerly Nano Innovations Inc.)

c/o #430 – 850 Harbourside Drive<br> North Vancouver, British Columbia V7P 0A3

Attention: R. Michael Steele<br> Email: michael.steele@adven-industries.com

With a copy to:

R.H. Daignault Law Corporation

c/o 1090 - 14th Street

West Vancouver, BC V7T 2R6

Attention: Rene Daignault<br> Email: rene@rhdlawcorp.com

or to such other addresses as may be given in writing by the Parties in the manner provided for in this section. The Shareholders direct all notices to be given to them be given to them care of AdvEn as provided for above.

Any notice or communication sent by postage prepaid first class mail shall conclusively be deemed to have been given to the addressee upon the expiration of the fifth day (excluding Saturdays, Sundays and statutory holidays), free from interruption in the postal service, from the date of mailing.

10.11 Construction

Each of the Parties have had the opportunity to exercise business discretion in relation to the negotiation of the details of the transactions contemplated hereby. This Agreement is the result of arm's-length negotiations from equal bargaining positions. It is expressly agreed that this Agreement shall not be construed against any Party, and no consideration shall be given or presumption made, on the basis of who drafted this Agreement or any particular provision.

10.12 Time of the Essence

Time shall be of the essence in this Agreement.

10.13 Further Assurances

A Party shall, upon request of another Party, execute and deliver or cause to be executed and delivered all such documents, deeds and other instruments of further assurance and do or cause to be done all such acts and things as may be reasonably necessary or advisable to implement and give full effect to the provisions of this Agreement.

10.14 Non-Merger

The Parties agree that the provisions of this Agreement shall survive the execution, delivery and performance of this Agreement and the performance of any documents delivered in connection with it.

10.15 Assignment and Enurement

Neither this Agreement nor any benefits, rights or obligations under this Agreement shall be assignable by any Party to it, by operation of Applicable Laws or otherwise, without the prior express written consent of the other Parties which consent may be arbitrarily withheld. Subject to the foregoing provisions, this Agreement shall inure to the benefit of, be enforceable by and binding on the Parties and their respective successors and permitted assigns.

10.16 Counterpart Execution

This Agreement may be executed in as many counterparts as may be necessary, each of which so signed shall be deemed to be an original (and each signed copy sent by electronic or facsimile transmission shall be deemed to be an original) and such counterparts together shall constitute one and the same instrument and notwithstanding the date of execution shall be deemed to bear the date as set forth. In the event a Person that is an individual executes this Agreement using DocuSign or a similar application, the signature of such Person shall not require a witness.

IN WITNESS WHEREOF the Parties have caused this Agreement to be duly executed and delivered.

---

| | | | |
|:---|:---|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** | **NANO INNOVATIONS INC.** | **NANO INNOVATIONS INC.** |
| Per: | ____________________________ | Per: | |
| Name: | Yanguang Yuan | Name: | Arni Johannson |
| Title: | Chief Executive Officer | Title: | President and Director |
|  |  | Per: | |
|  |  | Name: | John Meekison |
|  |  | Title: | Director |

---

[*The rest of this page is intentionally left blank.<br> Counterpart signature pages of the Shareholders follow.*<u>]</u>

---

| | | | |
|:---|:---|:---|:---|
| **1367054 ALBERTA LTD.** | **1367054 ALBERTA LTD.** | **BITCAN GEOSCIENCES AND ENGINEERING INC.** | **BITCAN GEOSCIENCES AND ENGINEERING INC.** |
| Per: |  | Per: |  |
| Name: | Yanguang Yuan | Name: | Yanguang Yuan |
| Title: | Director | Title: | Director |
| **DELAWARE POWER SYSTEM CORP.** | **DELAWARE POWER SYSTEM CORP.** | **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** | **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** |
| Per: |  | Per: |  |
| Name: | Philip Chong | Name: | Jingjing Jiang |
| Title: | Director | Title: | Director |
| **KNP GROUP INC.** | **KNP GROUP INC.** |  |  |
| Per: |  |  |  |
| Name: | Philip Chong |  |  |
| Title: | Director |  |  |

---

[*The rest of this page is intentionally left blank*<u>]</u>

---

| | |
|:---|:---|
| WITNESS to Haixiang Gu (Enya) | **Haixiang Gu (Enya)** |
| WITNESS to Kyle Kegang Wang | **Kyle Kegang Wang** |
| WITNESS to Pao, Chung Yue | **Pao, Chung Yue** |
| WITNESS to Pao, Pi-Cheng Lin Amy | **Pao, Pi-Cheng Lin Amy** |
| WITNESS to Weixing Chen | **Weixing Chen** |
| WITNESS to Yafei Ou (alfred) | **Yafei Ou (alfred)** |
| WITNESS to Yan Xu | **Yan Xu** |

---

[*The rest of this page is intentionally left blank*<u>]</u>

**SCHEDULE A**

**ADVEN SHARES**

---

| | | |
|:---|:---|:---|
| <br> **Name of AdvEnShareholder** | **Number of<br> AdvEn Shares held** | **Number of<br> Nano Shares entitled<br> in exchange for<br> AdvEn Shares** |
| 1367054 Alberta Ltd. | 7903986 | 7903986 |
| BitCan Geosciences and Engineering Inc. | 2168614 | 2168614 |
| Delaware Power System Corp. | 193348 | 193348 |
| JiuHua Investment Holdings Company Limited | 2383982 | 2383982 |
| KNP Group Inc. | 4869815 | 4869815 |
| Haixiang Gu (Enya) | 8701 | 8701 |
| Kyle Kegang Wang<br>(Resident of Seattle, Washington, USA) | 1198758 | 1198758 |
| Pao, Chung Yue &/or Pao, Pi-Cheng Lin Amy<br>(Resident of Taiwan, China) | 161123 | 161123 |
| Weixing Chen | 6055066 | 6055066 |
| Yafei Ou (Alfred)<br>(Resident of China) | 345683 | 345683 |
| Yan Xu | &nbsp;&nbsp;&nbsp;&nbsp;710924 | 710924 |
| Total: | **26000000** | **26000000** |

---

**SCHEDULE B**

**FORM OF Stock Restriction Agreement**

This Stock Restriction Agreement (the **Agreement**) is dated as of ●, 2021 and is between Nano Innovations Inc. (the **Corporation**) and [Name] (the **CFG Principal**).

Whereas the CFG Principal holds ● Common Voting No Par Value Shares in the capital of the Corporation, of which ●% (rounded down to the nearest whole share) shall be subject to the restrictions contained in this Agreement (the **Subject Shares**). The Subject Shares that are subject to the Restrictions (defined below) are referred to in this Agreement as the **Total Restricted Shares** and are identified as such in the attached <u>Schedule A</u>.

Now therefore, in consideration for the payment by the Corporation to the CFG Principal of CDN$1.00 and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the Corporation and the CFG Principal (collectively, the **Parties**) agree as follows:

**<u>ARTICLE ONE<br> RESTRICTIONS</u>**

1.1 <u>Power of Attorney</u>. The CFG Principal does hereby constitute and appoint any officer or director (the **Officer**) of the Corporation as the true and lawful attorney for the CFG Principal, and in the name, place and stead of the CFG Principal, to execute and deliver any and all stock transfers, endorsements or other instruments required to be executed and delivered in connection with the exercise by the Corporation of its repurchase rights stated in this Agreement, in each case with respect to any and all Restricted Shares (as defined in <u>Section 1.3</u> below). This power of attorney is hereby coupled with an interest and shall be irrevocable by the CFG Principal. This power of attorney shall terminate and be of no force and effect immediately upon all of the Subject Shares ceasing to be Restricted Shares. The power of attorney contemplated in this Agreement is not intended to be a continuing power of attorney or similar power of attorney within the meaning of and governed by under applicable substitute decision, living will or estate planning legislation in any of the provinces or territories of Canada (a **CPOA**). The execution of this power of attorney does not terminate any CPOA granted previously and this power of attorney is not terminated by the execution by the CFG Principal in the future of a CPOA, and the CFG Principal hereby agrees not to take any action that results in the termination of this power of attorney prior to the Subject Shares ceasing to be Restricted Shares. Any proxy executed and delivered pursuant hereto relating to any meeting of shareholders or any adjournments thereof shall revoke any proxy otherwise executed and delivered by or on behalf of the CFG Principal with respect to such meeting or any adjournments thereof, regardless of the respective dates thereof.

1.2 <u>Share Certificate.</u> The Secretary of the Corporation shall hold the share certificate representing the Subject Securities until all of the Subject Shares cease to be Restricted Shares. If, prior to that time, the Corporation exercises the Repurchase Right in accordance with <u>Section 1.4</u>, then, in conjunction with the completion of the repurchase of Restricted Shares from the CFG Principal, the Corporation shall re-issue a share certificate to the CFG evidencing the remaining Subject Shares held by the CFG Principal.

1.3 <u>Restrictions</u>. Until such time as the applicable Performance Target relating to the Restricted Shares is satisfied (as described in <u>Schedule A</u>), the holder of such Restricted Shares shall not, with respect to those Restricted Shares, be entitled to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) vote at a meeting of the shareholders of the Corporation (or sign a written resolution in lieu of a meeting);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) receive dividends or other distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) receive payment or property in relation to or as a consequence of the wind-up and dissolution of the Corporation;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) transfer or dispose of the Restricted Shares or any interest therein or represented thereby directly or
indirectly in any manner whatsoever including, without limitation, by operation of law, court order, judicial process, sale, assignment,
gift, donation, or by through the granting of a security, lien, pledge, mortgage, hypothecation, or charge; (collectively, the **Restrictions**).

1.4 <u>Repurchase Right</u>. If a Performance Target is not satisfied on or prior to the applicable Completion Date stipulated in <u>Schedule A</u>, then the Corporation shall have the right, but not the obligation (the **Repurchase Right**), to purchase all of the applicable Restricted Shares owned by the CFG Principal at a purchase price equal to the issue price of such Restricted Shares. The Corporation shall exercise the Repurchase Right by written notice (the **Exercise Notice**) given to the CFG Principal within 120 days after the date the repurchase right arises (the **Exercise Period**). The closing of any such purchase and sale transaction shall occur within 30 days of the Corporation (or its assignee) delivering the Exercise Notice. The CFG Principal agrees that he will perform his obligations hereunder and will ratify and confirm all that the Corporation may do or cause to be done pursuant to the foregoing. If the Corporation does not exercise the Repurchase Right during the Exercise Period, then the Repurchase Right will terminate and be of no further force or effect.

**<u>ARTICLE TWO<br> GENERAL</u>**

2.1 <u>Further Assurances</u>. The CFG Principal shall from time to time at the Corporation's request and expense and without further consideration, execute and deliver such other documents and take such further action as the Corporation may require for compliance with all applicable securities legislation and policies.

2.2 <u>Governing Law</u>. This Subscription Agreement is governed by the laws of the Province of British Columbia and the laws of Canada applicable and shall be treated in all respects as a British Columbia contract and the Parties hereby submit to the exclusive jurisdiction of the courts of the Province of British Columbia.

2.3 <u>Entire Agreement</u>. This Agreement sets forth the entire agreement and understanding of the Parties with respect to the subject matter hereof and all prior agreements, discussions and understandings are merged in this Agreement. None of the Parties shall be bound by any conditions, definitions, warranties, representations or understandings with respect to the subject matter hereof other than as expressly provided for in this Agreement or as duly stated in writing by subsequent written agreement of the Parties.

2.4 <u>Enurement</u>. This Agreement shall enure to the benefit of the Parties and their respective heirs, executors, administrators, successors and permitted assigns and be binding upon the Parties and their respective heirs, executors, administrators, successors and permitted assigns.

2.5 <u>Counterparts</u>. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument. Counterparts may be executed either in original or electronically delivered form and the Parties adopt any signatures received by electronic form as original signatures of the Parties.

**IN WITNESS WHEREOF** the Parties hereto have duly executed this Agreement as of the date first above mentioned.

---

| |
|:---|
| **Nano Innovations Inc.** |
| By: |
| Name: |
| Title: |
| **[NAME]** |
| By: |
| Name: |
| Title: |

---

**<u>SCHEDULE A</u>**

---

| | |
|:---|:---|
| &nbsp;&nbsp; **TOTAL SHARES** | &nbsp;&nbsp;[•] |
| &nbsp;&nbsp;**SUBJECT SHARES** | &nbsp;&nbsp;[•] |
| &nbsp;&nbsp;**TOTAL RESTRICTED SHARES** | &nbsp;&nbsp;[•] |

---

---

| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**No.** | &nbsp;&nbsp;**Performance Target** | &nbsp;&nbsp;**Completion Date** | &nbsp;&nbsp;**Number of Restricted Shares** |
| &nbsp;&nbsp;1 | &nbsp;&nbsp;Completion of: (i) an initial listing of the Corporation's common shares on a recognized stock exchange in North America; or (ii) an amalgamation, arrangement, take-over bid, or other similar transaction or series of related transactions pursuant to which the common shares of the Corporation are converted into or exchanged for shares that are then listed on a recognized stock exchange in North America; and a concurrent offering of not less than 1,600,000 units of the Corporation (or units of the issuer that the common shares of the Corporation will be converted into or exchanged for) at an anticipated price of CDN$2.50 per unit. The final terms of this financing will be determined by the newly constituted board of directors of the Corporation. The occurrence of either (i) or (ii) in respect of the Corporation is referred to herein as the **Go-Public Transaction**. | &nbsp;&nbsp;March 31, 2022 | &nbsp;&nbsp;Total Restricted Shares X (2/3) |
| &nbsp;&nbsp;2 | &nbsp;&nbsp;Completion of one or more offerings of common shares of the Corporation at a price and on terms approved by the board of directors of the Corporation for aggregate gross proceeds of not less than $25,000,000. Such offerings may be completed on either a brokered or non-brokered basis in each province of Canada, the United States of America, and such other jurisdictions as approved by the board of directors of the Corporation. | &nbsp;&nbsp;24-month anniversary of the completion of the Go-Public Transaction | &nbsp;&nbsp;Total Restricted Shares X (1/3) |

---

**SCHEDULE C**

**ADVEN DISCLOSURE**

This Disclosure Schedule (the **Disclosure Schedule**) is prepared and delivered by AdvEn to Nano in connection with the execution of the share exchange agreement dated September 28, 2021 (the **Share Exchange Agreement**) as at the Effective Date. Capitalized terms used in this Disclosure Schedule, shall, unless otherwise defined herein, have the meanings ascribed to them in the Share Exchange Agreement.

This Disclosure Schedule has been arranged, for purposes of convenience only, as separately referenced disclosures corresponding to the sections of the Share Exchange Agreement. Although it is arranged in sections corresponding to the sections of the Share Exchange Agreement, any information disclosed in this Disclosure Schedule will be deemed to qualify the disclosure under all of the representations and warranties given by AdvEn in the Share Exchange Agreement if it can be reasonably determined that it also qualifies or applies to such other representations and warranties of AdvEn in the Share Exchange Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**1.**  **<u>Section 4.2(1)(b)(i)</u>** 

Nano acknowledges and agrees that disclosure by AdvEn in respect of this matter may be delivered by AdvEn to Nano on or prior to the Closing Time. Receipt of such disclosure is a condition precedent given for the exclusive benefit of Nano, being fulfilled or waived in writing by Nano at or prior to Closing, and deemed to be incorporated into the other conditions precedent set forth in Section 6.2(1) of the Share Exchange Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**2.**  **<u>Section 4.2(1)(c)(ii)</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· An option certificate dated December 20, 2016
was issued by AdvEn to Xiaojin Liu in respect of an option to acquire up to 80,000 common shares in the authorized capital of AdvEn. This
optionholder had previously confirmed the voluntarily forfeiture of these options. AdvEn will use reasonable efforts after the Effective
Date to cause the forfeiture of these options by such optionholder to be documented in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· An option certificate dated December 30, 2014
was issued by AdvEn to Tianfei Wang in respect of an option to acquire up to 50,000 common shares in the authorized capital of AdvEn.
A second option certificate which was unsigned was delivered to Tianfei Wang in respect of an additional option to acquire up to 25,000
common shares in the authorized capital of AdvEn with a proposed grant date of January 1, 2015. This optionholder had previously confirmed
the voluntarily forfeiture of these options. AdvEn will use reasonable efforts after the Effective Date to cause the forfeiture of these
options by such optionholder to be documented in writing.

&nbsp;&nbsp;&nbsp;&nbsp;**3.**  **<u>Section 4.2(1)(c)(iii)</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AdvEn has issued a secured promissory note in
the principal amount of CDN$200,000.00 to KNP Group Inc. which bears interest at a rate of 6% per annum and which indebtedness is secured
pursuant to a general security agreement dated December 28, 2017 given in favour of such creditor by AdvEn.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· AdvEn has issued a secured promissory note in
the principal amount of USD$500,000 to 1367054 Alberta Ltd. which bears interest at a rate of 6% per annum and which indebtedness is secured
pursuant to a general security agreement dated December 28, 2017 given in favour of such creditor by AdvEn.

&nbsp;&nbsp;&nbsp;&nbsp;**4.**  **<u>Section 4.2(1)(d)</u>** 

The corporate records of AdvEn reflet the following deficiencies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Articles of Amendment to revise share structure
from 1,000 common shares to an unlimited number of common shares not contained within the minute book of AdvEn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Articles of Amendment to change name to AdvEn
Industries Inc. together with minutes of shareholders of AdvEn authorizing such name change not contained within the minute book of AdvEn;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Certain resolutions of the board of directors
of AdvEn (the **Board**) and the shareholders of AdvEn have been signed only by the recording secretary and others have been signed
by the directors and/or shareholders, as the case may be, electronically;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Resolution of the Board dated September 11, 2013
missing signatures of Xinwi Cui and Weixing Chen;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Resolution of the shareholders of AdvEn dated
October 31, 2012 missing signatures of Xinwi Cui and Weixing Chen;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Share Certificates No. 1 to 17 and 19 of AdvEn
not contained within the minute book of AdvEn; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Directors and officers register of AdvEn and
the register of security transfers of AdvEn not contained within the minute book of AdvEn.

&nbsp;&nbsp;&nbsp;&nbsp;**5.**  **<u>Section 4.2(1)(e)</u>** 

Nano acknowledges and agrees that disclosure by AdvEn in respect of this matter may be delivered by AdvEn to Nano on or prior to the Closing Time. Receipt of such disclosure is a condition precedent given for the exclusive benefit of Nano, being fulfilled or waived in writing by Nano at or prior to Closing, and deemed to be incorporated into the other conditions precedent set forth in Section 6.2(1) of the Share Exchange Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**6.**  **<u>Section 4.2(1)(c)(iii) and 4.2(1)(g)</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Further to the disclosure on page 6 of the term
sheet entered into between Nano and AdvEn, JiuHua Investment Holdings Co. Ltd. may not be in favour of proceeding with the Share Exchange
Transaction and desires to have its investment of $1,997,090 to acquire its AdvEn Shares returned. Either before or after Closing and
subject to the requirements of Spartan Capital Securities, LLC, in connection with the completion by Nano of the Qualified Financing,
AdvEn and/or Nano will negotiate the terms pursuant to which such AdvEn Shares will be acquired by certain Persons from such shareholder.

&nbsp;&nbsp;&nbsp;&nbsp;**7.**  **<u>Section 4.2(1)(i)</u>** 

Nano acknowledges and agrees that disclosure by AdvEn in respect of this matter may be delivered by AdvEn to Nano on or prior to the Closing Time. Receipt of such disclosure is a condition precedent given for the exclusive benefit of Nano, being fulfilled or waived in writing by Nano at or prior to Closing, and deemed to be incorporated into the other conditions precedent set forth in Section 6.2(1) of the Share Exchange Agreement.

## Exhibit 3.1

**Exhibit 3.1**

![](cm281_ex3-1img01.jpg)

## Exhibit 3.2

**Exhibit 3.2**

**Incorporation No. BC1140815**

**PROVINCE OF BRITISH COLUMBIA**

 ****

***Business Corporations Act***

**ARTICLES**

**OF**

**Nano Innovations Inc.**

**<u>PART 1 - INTERPRETATION</u>**

**Definitions**

**1.1** Without limiting Article 1.2, in these Articles, unless the context requires otherwise:

"**adjourned meeting**" means the meeting to which a meeting is adjourned under Article 9.6 or 9.10.

"**Board**" and the "**Directors**" or the "**directors**" mean the directors or the sole director of the Company for the time being.

 ****

***"Business Corporations Act"*** means the *Business Corporations Act,* S.B.C. 2002, c.57, and includes any amendments thereto and its regulations.

"**Company**" means Nano Innovations Inc.

**"exceptional resolution"** means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** a resolution passed at a general meeting under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** notice of the meeting specifying the intention to propose the resolution as an exceptional resolution
is sent to all shareholders holding shares that carry the right to vote at general meetings at least the prescribed number of days before
the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** the articles provide that, of the votes cast on the resolution by shareholders voting shares that carry
the right to vote at general meetings, a specified majority must be cast in favour of the resolution before it can pass as an exceptional
resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii.** the majority of votes specified by the articles under subparagraph (ii) is greater than a special majority;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iv.** not less than the majority of votes specified by the articles under subparagraph (ii) is cast in favour
of the resolution by shareholders voting shares that carry the right to vote at general meetings, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** a resolution passed by being consented to in writing by all of the shareholders holding shares that carry
the right to vote at general meetings.

"**general meeting**" means a general meeting of the shareholders of the Company, including an annual general meeting and a special general meeting.

 ****

***"Interpretation Act"*** means the *Interpretation Act,* R.S.B.C. 1996, c. 238.

"**ordinary resolution**" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** a resolution passed at a general meeting by a simple majority of the votes cast by shareholders voting
shares that carry the right to vote at general meetings, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** a resolution passed, after being submitted to all of the shareholders holding shares that
carry the right to vote at general meetings, by being consented to in writing by shareholders holding shares that carry the right to
vote at general meetings who, in the aggregate, hold shares carrying at least a special majority of the votes entitled to be cast on
the resolution.

**"Shareholders' List"** means the Company's central securities register as required by the *Business Corporations Act.*

"**special majority**" means the majority of votes cast in favour of a resolution at a general meeting that constitute at least 2/3 of the votes cast on the resolution.

"**special resolution**" means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** a resolution passed at a general meeting under the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** notice of the meeting specifying the intention to propose the resolution as a special resolution is sent
to all shareholders holding shares that carry the right to vote at general meetings at least the prescribed number of days before the
meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** the majority of the votes cast by shareholders voting shares that carry the right to vote at general meetings
is cast in favour of the resolution; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii.** the majority of votes cast in favour of the resolution constitutes at least a special majority,
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** a resolution passed by being consented to in writing by all of the shareholders holding shares that carry
the right to vote at general meetings.

**"trustee"**, in relation to a shareholder, means the personal or other legal representative of the shareholder, and includes a trustee in bankruptcy of the shareholder.

 ****

***Business Corporations Act* definitions**

**1.2** The definitions in the *Business Corporations Act* apply to these Articles.

 ****

***Interpretation Act* applies**

**1.3** The Interpretation Act applies to the interpretation of these Articles as if these Articles were an enactment.

**Conflicts in definitions**

**1.4** If there is a conflict between a definition in the *Business Corporations Act* and a definition or rule in the *Interpretation Act* relating to a term used in these Articles, the definition in the *Business Corporations Act* will prevail in relation to the use of the term in these Articles.

**Conflict between Articles and legislation**

**1.5** If there is a conflict between these Articles and the *Business Corporations Act,* the *Business Corporations Act* will prevail.

**<u>PART 2 - SHARES AND SHARE CERTIFICATES</u>**

**Form of Share Certificate**

**2.1** Each share certificate issued by the Company must comply with, and be signed as required by, the *Business Corporations Act*.

**Nano Innovations Inc.**

**Right to Share Certificate**

**2.2** Every shareholder is entitled, without charge, to one certificate representing the share or shares of each class held by the shareholder; provided that, in respect of a share or shares held jointly by several persons, the Company will not be bound to issue more than one certificate, and delivery of a certificate for a share to one of several joint registered holders or to his duly authorized agent will be sufficient delivery to all; and provided further that the Company will not be bound to issue certificates representing redeemable shares, if such shares are to be redeemed within one month of the date on which they were allotted.

**Share Certificates to be signed**

**2.3** Every share certificate will be signed manually by at least one officer or director of the Company, or by or on behalf of a registrar, branch registrar, transfer agent or branch transfer agent of the Company, and any additional signatures may be printed or otherwise mechanically reproduced and, in such event, a certificate so signed is as valid as if signed manually, not withstanding that any person whose signature is so printed or mechanically reproduced will have ceased to hold the office that he is stated on such certificate to hold at the date of the issue of a share certificate.

**Mail delivery of Share Certificate**

**2.4** Any share certificate that a shareholder is entitled to may be sent to the shareholder by mail and neither the Company nor any agent is liable for any loss to the shareholder because the share certificate sent is lost in the mail or stolen.

**Replacement of Share Certificate**

**2.5** If the directors are satisfied that a share certificate is worn out or defaced, they must, on production to them of the share certificate and on such other terms, if any, as they think fit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** order the certificate to be cancelled, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** issue a replacement share certificate

**2.6** If a share certificate is lost, stolen or destroyed, a replacement share certificate must be issued to the person entitled to that share certificate if the directors receive

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** satisfactory evidence that the share certificate is lost, stolen or destroyed, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** any indemnity that the directors deem adequate.

**2.7** If a share certificate represents more than one share and the registered shareholder thereof surrenders it to the Company with a written request that the Company issue two or more share certificates in the name of the registered shareholder with each replacement share certificate representing a specified number of shares and in the aggregate representing the same number of shares as the share certificate so surrendered, the Company will cancel the surrendered share certificate and issue replacement share certificates in accordance with such request.

**2.8** If a shareholder surrenders two or more share certificates to the Company together with a written request that the Company issue one replacement share certificate registered in the name of the shareholder representing the aggregate number of shares represented by the surrendered share certificates, the Company will cancel the surrendered share certificates and issue one replacement share certificate in accordance with such request.

**2.9** The directors may from time to time fix a sum to be paid to the Company for each replacement share certificate to be issued under these Articles.

**Trusts not recognized**

**2.10** Except as required by law, statute or these Articles, no person will be recognised by the Company as holding any share upon any trust, and the Company will not be bound or compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future or partial interest in any share or in any fractional part of a share or (except only as by law, statute or these Articles provide or as ordered by a court of competent jurisdiction) any other rights in respect of any share except an absolute right to the entirety thereof in its registered holder.

**Nano Innovations Inc.**

**<u>PART 3 - ISSUANCE OF SHARES</u>**

**Issuance Price**

**3.1** The issue price for a share must be set by the Board in its absolute discretion, and for shares with a par value, at a price equal or greater to the par value of the share.

**Consideration for Shares**

**3.2** No share may be issued until it is fully paid and the Company will have received the full consideration therefor in cash, property or past services actually performed for the Company. The value of property or services for the purpose of this Article will be the value determined by the directors by resolution to be, in all circumstances of the transaction, the fair market value thereof.

**Discretionary Authority**

**3.3** The directors may, subject to the rights of the holders of the issued shares of the Company, issue, allot, sell, grant options on, or otherwise dispose of the unissued shares and issued shares held by the Company, at the times, to the persons, including directors, in the manner, on the terms and conditions, and for the issue prices that the directors, in their absolute discretion, may determine.

**Shareholders' Rights**

**3.4** Except as required by law or these Articles, the Company need not recognize or provide for any person's interests in or rights to a share unless that person is the shareholder of the share.

**<u>PART 4 - CENTRAL SECURITIES REGISTER</u>**

**Shareholders' List**

**4.1** The Company will keep or cause to be kept a Shareholders' List, which will list the name and address of each shareholder, the class or series of the shares, the number of shares registered to each shareholder, and the date and particulars of each share issuance and each share transfer. If the Company's capital will consist of more than one class of shares, a Shareholders' List may be kept in respect of each class of shares.

**Location of Shareholders' List**

**4.2** The Company will keep the Shareholders' List at the records office of the Company or at any other location in British Columbia designated by the directors.

**Transfer Agent and Registrar**

**4.3** The directors on behalf of the Company may appoint an agent to keep and maintain the Shareholders' List, or, if there is more than one class of shares, the directors may appoint an agent, which need not be the same agent, to keep the Shareholders' List for each class of shares. The directors on behalf of the Company may also appoint one or more agents to keep the Shareholders' List of its shares or of a class thereof, as transfer agent for its shares or such class thereof, as the case may be, and the same or another agent as registrar for its shares or such class thereof, as the case may be. The directors may terminate the appointment of any such agent at any time and may appoint another agent in its place.

**Branch Registers**

**4.4** The Company may keep or cause to be kept one or more branch Shareholders' List at such place or places as the directors may from time to time determine.

**Maintain open Register**

**4.5** The Company will not at any time close its Shareholders' List.

**Nano Innovations Inc.**

**<u>PART 5 - SHARE TRANSFERS</u>**

**Share Transfer**

**5.1** Subject to the provisions of these Articles that may be applicable, including without limitation the restrictions on the transfer of the shares in Part 24 hereof that may be applicable, any shareholder may transfer any of his shares by instrument in writing executed by or on behalf of such shareholder and delivered to the Company or its transfer agent. Except to the extent that the *Business Corporations Act* may otherwise provide, the transferor will be deemed to remain the holder of the shares until the name of the transferee is entered in the Shareholders' List or a branch Shareholders' List in respect thereof.

**Registration of Transfer**

**5.2** A transfer of a share of the Company must not be recorded or registered:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** unless a duly signed instrument of transfer in respect of the share has been received by the Company and
the certificate representing the share to be transferred has been surrendered and cancelled, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** if no certificate has been issued by the Company in respect of the share, unless a duly signed instrument
of transfer in respect of the share has been received by the Company.

**Transfer Instrument**

**5.3** The transfer instrument in respect of any share of the Company must be either in the form, if any, on the back of the Company's share certificates or in any other form that may be approved by the Board from time to time.

**Completion of Transfer Instrument**

**5.4** If a shareholder, or his or her duly authorized attorney, signs a transfer instrument in respect of shares registered in the name of the shareholder, the signed instrument of transfer constitutes a complete and sufficient authority to the Company and its directors, officers and agents to register the number of shares specified in the transfer instrument, or, if no number is specified all the shares represented by share certificates deposited with the transfer instrument:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** in the name of the person named as transferee in that transfer instrument; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** if no person is named as transferee in that transfer instrument, in the name of the person on whose behalf
the share certificate is deposited for the purpose of having the transfer registered.

**Delivery of Transfer Instrument**

**5.5** Every transfer instrument will be signed by the transferor and left at the registered office of the Company or at the office of its transfer agent or registrar for registration together with the share certificate for the shares to be transferred and such other evidence, if any, as the directors or the transfer agent or registrar may require to prove the title of the transferor or his right to transfer the shares and the right of the transferee to have the transfer registered. All transfer instruments will be retained by the Company or its transfer agent or registrar.

**Title of Transferee**

**5.6** Neither the Company nor any director, officer or agent thereof will be bound to inquire into the title of the person named in the transfer instrument as transferee, or, if no person is named therein as transferee, of the person on whose behalf the certificate is deposited with the Company for the purpose of having the transfer registered or be liable to any claim by such registered owner or by any intermediate owner or holder of the certificate or of any of the shares represented thereby or any interest therein for registering the transfer, and the transfer, when registered, will confer upon the person in whose name the shares have been registered a valid title to such shares.

**Nano Innovations Inc.**

**Transfer Fee**

**5.7** The directors, at their absolute discretion, may from time to time fix a sum, if any, to be paid to the Company for each transfer and the registration of each transfer under these Articles.

**Transfer to Survivor**

**5.8** In the case of the death of a shareholder, the survivor, or survivors where the deceased was a joint registered holder, and the legal personal representative of the deceased, where the shareholder was the sole holder, will be the only persons recognized by the Company as having any title to the shareholder's interest in the shares. Before recognizing any legal personal representative the directors may require the legal personal representative to obtain a grant of probate or letters of administration in British Columbia.

**Rights of Representative and Trustee**

**5.9** Upon the death or bankruptcy of a shareholder, his personal representative or trustee in bankruptcy, although not a shareholder, will have the same rights, privileges and obligations that attach to the shares formerly held by the deceased or bankrupt shareholder if the documents required by the *Business Corporations Act* will have been deposited at the Company's registered office.

**Right to Transfer**

**5.10** Any person becoming entitled to a share in consequence of the death or bankruptcy of a shareholder will upon such documents and evidence being produced to the Company as the *Business Corporations Act* requires, or who becomes entitled to a share as a result of an order of a court of competent jurisdiction or a statute has the right either to be registered as a shareholder in his representative capacity in respect of such share, or, if he is a personal representative, instead of being registered himself, to make such transfer of the share as the deceased or bankrupt person could have made; but the Board will, as regards a transfer by a personal representative or trustee in bankruptcy, have the same right, if any, to decline or suspend registration of a transferee as they would have in the case of a transfer of share by the deceased or bankrupt person before the death or bankruptcy.

**<u>PART 6 - PURCHASE AND REDEMPTION OF SHARES</u>**

**Purchase of Shares**

**6.1** Subject to the special rights and restrictions attached to any class of shares, the Company may, by a resolution of the directors and in compliance with the *Business Corporations Act*, purchase any of its shares at the price and upon the terms specified in such resolution or redeem any class of its shares in accordance with the special rights and restrictions attaching thereto.

**Redemption of Shares**

**6.2** If the Company proposes at its option to redeem some but not all of the shares of any class, as the directors may, subject to the special rights and restrictions attached to such class of shares, decide the manner in which the shares to be redeemed will be selected.

**Pro-Rata Purchase**

**6.3** Unless the shares are to be purchased through a stock exchange or the Company is purchasing the shares from dissenting shareholders pursuant to the requirements of the *Business Corporations Act*, the Company will make its offer to purchase pro rata to every shareholder who holds shares of the class or kind, as the case may be, to be purchased.

**Restrictions**

**6.4** The Company must not make a payment or provide any other consideration to purchase or redeem any of its shares if there are reasonable grounds for believing that the Company is insolvent at the time of the proposed purchase or redemption, or if the proposed purchase or redemption would render the Company insolvent.

**Nano Innovations Inc.**

**Voting Rights**

**6.5** Subject to the provisions of the *Business Corporations Act,* any shares purchased or redeemed by the Company may be sold or issued by it, but, while the Company holds such shares, it will not exercise any vote in respect of these shares and no dividend will be paid thereon.

**<u>PART 7 - BORROWING POWERS</u>**

**Powers of directors**

**7.1** The Board may from time to time on behalf of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** borrow money in such manner and amount, on such security, from such sources and upon such terms and conditions
as the Board considers appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** issue bonds, debentures, and other debt obligations either outright or as security for any liability or
obligation of the Company or any other person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** guarantee the repayment of money by any other person or the performance of any obligation of any other
person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** mortgage, charge, whether by way of specific or floating charge, or give other security on any part of
the present and future undertaking or on any part of the present and future property and assets of the Company.

**Issuance of debt obligation**

**7.2** Any bonds, debentures or other debt obligations of the Company may be issued at a discount, premium or otherwise, and with special privileges as to redemption, surrender, drawing, allotment of, or conversion into or exchange for shares or other securities, attending or voting at general meetings of the Company, appointment of directors or otherwise and may by their terms be assignable free from any equities between the Company and the person to whom they were issued or any subsequent holder thereof, all as the directors may determine.

**Validity of debt obligation**

**7.3** Every bond, debenture or other debt obligation of the Company will be signed manually by at least one director or officer of the Company or by or on behalf of a trustee, registrar, branch registrar, transfer agent or branch transfer agent for the bond, debenture or other debt obligation appointed by the Company or under any instrument under which the bond, debenture or other debt obligation is issued and any additional signatures may be printed or otherwise mechanically reproduced thereon and, in such event, a bond, debenture or other debt obligation so signed is as valid as if signed manually notwithstanding that any person whose signature is so printed or mechanically reproduced will have ceased to hold the office that he is stated on such bond, debenture or other debt obligation to hold at the date of the issue thereof.

**Register of indebtedness**

**7.4** The Company will keep or cause to be kept a register of its indebtedness to every director or officer of the Company or any associate of any of them in.

**<u>PART 8 - SHAREHOLDERS' MEETINGS</u>**

**Annual general meetings**

**8.1** Unless an annual general meeting is deferred or waived in accordance with section 182(2)(a) of the *Business Corporations Act*, the Company must hold its first annual general meeting within 18 months after the date on which it was incorporated or otherwise recognized, and after that must hold an annual general meeting at least once in each calendar year and not more than 15 months after the last annual general meeting.

**Nano Innovations Inc.**

**Deemed annual general meeting**

**8.2** If the Company is or becomes a company that is not a reporting company and if all of the shareholders who are entitled to vote at an annual general meeting consent by a unanimous resolution under section 182(2)(b) of the *Business Corporations Act* to all of the business that is required to be transacted at that annual general meeting, the annual general meeting is deemed to have been held on the date selected, under section 182(3) of the *Business Corporations Act,* in the unanimous resolution.

**Special general meetings**

**8.3** All general meetings other than the annual general meetings are herein referred to as and may be called special general meetings.

**Calling of shareholders' meeting**

**8.4** The directors may, whenever they think fit, call a general meeting.

**Calling of special general meeting**

**8.5** The directors may, whenever they think fit, convene a special general meeting. A special general meeting, if requisitioned in accordance with the *Business Corporations Act*, will be convened by the directors or, if not convened by the directors, may be convened by the requisitionists as provided by the *Business Corporations Act*.

**Advance notice of election of directors**

**8.6** If the Company is or becomes a reporting company, advance notice of any general meeting at which directors are to be elected will be published in the manner required by the *Business Corporations Act*.

**Notice of general meeting**

**8.7** A notice convening a general meeting specifying the place, the day, and the hour of the meeting, and, in case of special business, the general nature of that business, will be given as provided in the *Business Corporations Act* and in the manner hereinafter in these Articles mentioned, or in such other manner (if any) as may be prescribed by ordinary resolution, whether previous notice thereof has been given or not, to such persons as are entitled by law or under these Articles to receive such notice from the Company. Accidental omission to give notice of a general meeting to, or the non-receipt of notice of a general meeting by, any shareholder will not invalidate the proceedings at that general meeting.

**Waiver or reduction of notice**

**8.8** All the shareholders of the Company entitled to attend and vote at a general meeting may, by unanimous consent in writing given before, during, or after the meeting, or if they are present at the meeting, by a unanimous vote, waive or reduce the period of notice of such general meeting and an entry in the minute book of such waiver or reduction will be sufficient evidence of the due convening of the general meeting.

**Special business**

**8.9** If a general meeting is to consider special business within the meaning of Article 9.1, the notice of general meeting must

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. state the general nature of the special business, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. if the special business includes considering, approving, ratifying, adopting or authorizing any document
or the signing of or giving of effect to any document, have attached to it a copy of the document or state that a copy of the document
will be available for inspection by shareholders

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. at the Company's records office, or at such other reasonably accessible location in British Columbia
as is specified by the notice, and

**Nano Innovations Inc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. during statutory business hours on any one or more specified days before the day set for the holding of
the meeting.

**<u>PART 9 - PROCEEDINGS AT SHAREHOLDERS' MEETINGS</u>**

**Special business**

**9.1** All business will be deemed special business that is transacted at:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** a special general meeting, other than the business relating to the conduct of or voting
at such shareholders' meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** an annual general meeting, with the exception of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** the conduct of and voting at such meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** the consideration of any financial statement and of the respective reports of the directors and auditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii.** fixing or changing the number of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iv.** the election or appointment of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**v.** the appointment of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**vi.** the fixing of the remuneration of the auditor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**vii.** such other business as by these Articles or the *Business Corporations Act* may be transacted at
a general meeting without prior notice thereof being given to the shareholders or any business that is brought under consideration by
the report of the directors not requiring the passing of a special resolution or an exceptional resolution.

**Quorum**

**9.2** Subject to the special rights and restrictions attached to the shares of any class or series of shares, the quorum for the transaction of business at a general meeting is two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 1/20 of the issued shares entitled to be voted at the general meeting.

**One shareholder quorum**

**9.3** If there is only one shareholder entitled to vote at a general meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the quorum is one person who is, or who represents by proxy, that shareholder, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** that shareholder, present in person or by proxy, may constitute the general meeting.

**Other persons may attend**

**9.4** The directors, the president, if any, the secretary, if any, and any lawyer or auditor for the Company are entitled to attend any general meeting, but if any of those persons does attend a general meeting that person is not to be counted in the quorum, and is not entitled to vote at the general meeting, unless that person is a shareholder or proxy holder entitled to vote at the general meeting.

**Quorum at commencement**

**9.5** No business, other than election of the chairman or the adjournment of the general meeting, will be transacted at any general meeting unless a quorum of shareholders, entitled to attend and vote, is present at the commencement of the general meeting, but the quorum need not be present throughout the general meeting.

**Lack of quorum**

**9.6** If within 30 minutes from the time appointed for a general meeting, a quorum is not present:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** in the case of a general meeting convened by requisition of shareholders, the general meeting
is dissolved, and

**Nano Innovations Inc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** in the case of any other general meetings, the general meeting stands adjourned to the same
day in the next week, at the same time and place.

**Lack of quorum at succeeding meeting**

**9.7** If, at the adjourned general meeting to which the first general meeting referred to in Article 9.6(b) was adjourned, a quorum is not present within 30 minutes from the time appointed for the general meeting, the person or persons present and being, or representing by proxy, a shareholder or shareholders entitled to attend and vote at the general meeting will constitute a quorum.

**Chair of meeting**

**9.8** The following individual is entitled to preside as chair at a general meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the chair of the board, if any; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** if the chair of the board is absent or unwilling to act as chair of the general meeting, the president, if any.

**Alternate chair**

**9.9** If, at any general meeting, there is no chair of the board or president present within 15 minutes after the time set for holding the general meeting, or if the chair of the board and the president are unwilling to act as chair of the general meeting, or if the chair of the board and the president have advised the secretary, if any, or any director present at the general meeting, that they will not be present at the general meeting, the directors present must choose one of their number to be chair of the general meeting or if all of the directors present decline to take the chair or fail to so choose or if no director is present, the shareholders present in person or by proxy must choose any person present at the general meeting to chair the general meeting.

**Adjournments**

**9.10** The chair of a general meeting may, and if so directed by the general meeting must, adjourn the general meeting from time to time and from place to place, but no business may be transacted at any adjourned general meeting other than the business left unfinished at the general meeting from which the adjournment took place.

**Notice of adjourned meeting**

**9.11** It is not necessary to give any notice of an adjourned meeting or of the business to be transacted at an adjourned meeting of shareholders except that, when a general meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as in the case of the original general meeting. Save as aforesaid, it will not be necessary to give any notice of an adjourned meeting or of the business to be transacted at an adjourned meeting.

**Motion need not be seconded**

**9.12** No motion proposed at a general meeting need be seconded unless the chair of the general meeting rules otherwise, and the chair of any general meeting is entitled to propose or second a motion.

**Calling of a poll**

**9.13** Subject to the provisions of the *Business Corporations Act,* at any general meeting a resolution put to the vote of the general meeting will be decided on a show of hands, unless (before or on the declaration of the result of the show of hands) a poll is directed by the chair of the general meeting or demanded by at least one shareholder entitled to vote who is present in person or by proxy.

**Manner of taking poll**

**9.14** Subject to Article 9.15, if a poll is duly demanded at a general meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the poll must be taken

**Nano Innovations Inc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** at the general meeting, or within 7 days after the date of the general meeting, as the chair of the general
meeting directs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** in the manner, at the time and at the place that the chair of the general meeting directs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** the result of the poll is deemed to be a resolution of and passed at the general meeting at which the
poll is demanded; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** the demand for the poll may be withdrawn.

**Demand for poll on adjournment**

**9.15** A poll demanded at a general meeting on a question of adjournment must be taken immediately at the general meeting.

**Continuation of meeting**

**9.16** The demand for a poll at a general meeting does not, unless the chair of the general meeting so rules, prevent the continuation of a general meeting for the transaction of any business other than the question on which a poll has been demanded.

**No poll for election of chair**

**9.17** No poll may be demanded in respect of the vote by which a chair of a general meeting is elected.

**Casting of votes on poll**

**9.18** On a poll a person entitled to cast more than one vote need not, if he votes, use all his votes or cast all the votes he uses in the same way.

**Chair must resolve dispute**

**9.19** In the case of any dispute as to the admission or rejection of a vote given on a poll, the chair of the general meeting must determine the same, and his or her determination made in good faith is final and conclusive.

**Chair has not second vote**

**9.20** In the case of an equality of votes, whether on a show of hands or on a poll, the chair of the general meeting at which the show of hands takes place or at which the poll is demanded will not be entitled to a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder or a proxyholder.

**Declaration of result**

**9.21** The chair of a general meeting must declare to the general meeting the decision on every question in accordance with the result of the show of hands or the poll, as the case may be, and that decision must be entered in the minutes of the general meeting.

**Record of poll**

**9.22** Every ballot cast upon a poll and every proxy appointing a proxyholder who casts a ballot upon a poll will be retained in the records of the general meeting for such period and be subject to such inspection as the *Business Corporations Act* may provide.

**<u>PART 10 - VOTES OF SHAREHOLDERS</u>**

**Voting rights**

**10.1** Subject to any special rights or restrictions attached to any shares and to the restrictions imposed on joint registered holders of shares under Article 10.3,

**Nano Innovations Inc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** on a vote by show of hands, every person present who is a shareholder or proxyholder and entitled to vote
at the general meeting has one vote, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** on a poll, every shareholder entitled to vote has one vote in respect of each share held by that shareholder
that carries the right to vote on that poll and may exercise that vote either in person or by proxy.

**Trustee of shareholder may vote**

**10.2** A person who is not a shareholder may vote on a resolution at a general meeting, whether on a show of hands or on a poll, and may appoint a proxyholder to act at the general meeting in relation to that resolution, if, before doing so, the person satisfies the chair of the general meeting at which the resolution is to be considered, or the directors, that the person is a trustee for a shareholder who is entitled to vote on the resolution.

**Votes by joint shareholders**

**10.3** If there are joint shareholders registered in respect of any share,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** any one of the joint shareholders may vote at any general meeting, either personally or by proxy, in respect
of the share as if that joint shareholder were solely entitled to it, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** if more than one of the joint shareholders is present at any general meeting, personally or by proxy,
the joint shareholder present whose name stands first on the Shareholders' List in respect of the share is alone entitled to vote
in respect of that share.

**Trustees as joint shareholders**

**10.4** Two or more trustees of a shareholder in whose sole name any share is registered are, for the purposes of Article 10.3, deemed to be joint shareholders.

**Representative of a corporate shareholder**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5** If a company that is not a subsidiary of the Company is a shareholder of the Company, that company may
appoint a person to act as its representative at any general meeting of the Company, and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** for that purpose, the instrument appointing a representative must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** be received at the registered office of the Company or at any other place specified, in the notice calling
the general meeting, for the receipt of proxies, at least two business days before the day set for the holding of the general meeting,
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** be provided, at the general meeting, to the chair of the meeting, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** if a representative is appointed under this Article,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** the representative is entitled to exercise in respect of and at that general meeting the same rights on
behalf of the company that the representative represents as that company could exercise if it were a shareholder who is an individual,
including, without limitation, the right to appoint a proxyholder, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** the representative, if present at the general meeting, is to be counted for the purpose of forming a quorum
and is deemed to be a shareholder present in person at the general meeting.

**Vote by committee**

**10.6** A shareholder of unsound mind entitled to attend and vote, in respect of whom an order has been made by any court having jurisdiction, may vote, whether on a show of hands or on a poll, by his committee, curator bonis, or other person in the nature of a committee or curator bonis appointed by that court, and any such committee, curator bonis, or any other person may appoint a proxyholder.

**Nano Innovations Inc.**

**Appointment of proxyholder**

**10.7** Every shareholder of the Company, including a corporation that is a shareholder but not a subsidiary of the Company, entitled to vote at a general meeting may, by proxy, appoint a proxyholder to attend and act at the general meeting in the manner, to the extent and with the powers conferred by the proxy.

**Alternate proxyholder**

**10.8** A shareholder may appoint one or more alternate proxy holders to act in the place of an absent proxy holder.

**Appointment of more than one proxyholder**

**10.9** A shareholder holding more than one share in respect of which he is entitled to vote will be entitled to appoint one or more (but not more than five) proxyholders to attend, act and vote for him on the same occasion. If such a shareholder should appoint more than one proxyholder for the same occasion he will specify the number of shares each proxyholder will be entitled to vote.

**When proxyholder need not be a shareholder**

**10.10** A person must not be appointed as a proxyholder unless the person is a shareholder, although a person who is not a shareholder may be appointed as a proxyholder if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the Company is at the time of the appointment of the proxyholder a public company,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** the person appointing the proxyholder is a corporation or a representative of a corporation appointed
under Article 10.5,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** the Company has at the time of the general meeting for which the proxyholder is to be appointed only one
shareholder entitled to vote at the general meeting, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** the shareholders present in person or by proxy at and entitled to vote at the general meeting for which
the proxy holder is to be appointed, by a resolution on which the proxyholder is not entitled to vote but in respect of which the proxyholder
is to be counted in the quorum, permit the proxyholder to attend and vote at the general meeting,

and in all other cases a proxyholder must be a shareholder.

**Proxy in writing**

**10.11** A form of proxy will be in writing under the hand of the appointor or of his attorney duly authorized in writing, or, if the appointor is a corporation, either under the seal of the corporation or under the hand of a duly authorized officer or attorney.

**Delivery of proxy**

**10.12** A form of proxy and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy thereof will be deposited at the registered office of the Company or at such other place as is specified for that purpose in the notice convening the general meeting, not less than 48 hours (excluding Saturdays, Sundays and holidays) before the time for holding the general meeting in respect of which the person named in the instrument is appointed. In addition to any other method of depositing proxies provided for in these Articles, the directors may from time to time by resolution make regulations relating to the depositing of proxies at any place or places and fixing the time or times for depositing the proxies not exceeding 48 hours (excluding Saturdays, Sundays and holidays) preceding the general meeting or adjourned general meeting specified in the notice calling a general meeting and providing for particulars of such proxies to be sent to the Company or any agent of the Company in writing or by letter, telegram, telex or any method of transmitting legibly recorded messages so as to arrive before the commencement of the general meeting or adjourned general meeting at the office of the Company or of any agent the Company appointed for the purpose of receiving such particulars and providing that proxies so deposited may be acted upon as though the proxies themselves were deposited as required by this Article and votes given in accordance with such regulations will be valid and will be counted.

**Nano Innovations Inc.**

**Form of proxy**

**10.13** Unless the *Business Corporations Act* or any other statute or law which is applicable to the Company or to any class of its shares requires any other form of proxy, a proxy, whether for a specified general meeting or otherwise, will be in the form following, but may also be in any other form that the directors or the chair of the general meeting will approve:

(Name of Company)

The undersigned, being a shareholder of the Company, appoints<u> </u>, or failing that person,<u> </u> as proxyholder for the undersigned to attend, act and vote for and on behalf of the undersigned at the shareholders' meeting of the Company to be held on the<u> </u> day of<u> </u> and at any adjournment of that shareholders' meeting.

Signed this<u> </u> day of<u> </u>, 20<u> </u>.

  <br> (Signature of shareholder)

**Validity of proxy votes**

**10.14** A vote given in accordance with the terms of a proxy is valid despite the death or incapacity of the shareholder giving the proxy and despite the revocation of the proxy or the revocation of the authority under which the proxy is given, unless notice in writing of that death, incapacity or revocation is received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** at the registered office of the Company, at any time up to and including the last business day before
the day set for the holding of the general meeting at which the proxy is to be used, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** by the chair of the general meeting, before the vote is taken.

**Revocation of proxies**

**10.15** Subject to Article 10.16, every proxy may be revoked by an instrument in writing that is

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** received at the registered office of the Company at any time up to and including the last business day
before the day set for the holding of the general meeting at which the proxy is to be used, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** provided at the general meeting to the chair of the general meeting.

**Revocation of proxies must be signed**

**10.16** An instrument referred to in Article 10.15 must be signed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** if the shareholder for whom the proxyholder is appointed is an individual, the instrument must be signed
by the shareholder or his or her trustee; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** if the shareholder for whom the proxyholder is appointed is a corporation, the instrument must be signed
by the corporation or by a representative appointed for the corporation under Article 10.5.

**Production of evidence of authority to vote**

**10.17** The chair of any general meeting may, but need not, inquire into the authority of any person to vote at the general meeting and may, but need not, demand from that person production of evidence as to the existence of the authority to vote.

**Nano Innovations Inc.**

**<u>PART 11 - DIRECTORS</u>**

**Number of directors**

**11.1** The Company must have a board of directors consisting of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** subject to paragraph (b), the number of directors that is equal to the number of the Company's first directors, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** the number of directors set by ordinary resolution.

**Change in number of directors**

**11.2** If the number of directors is changed by the shareholders under Article 11.1 (b),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the change is effective whether or not previous notice of the resolution was given, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** the shareholders may elect, or appoint by ordinary resolution, the directors needed to fill any vacancies
in the Board that result from that change.

**Remunerations of directors**

**11.3** The remuneration of the directors as such may from time to time be determined by the directors or, if the directors will so decide, by the shareholders. Such 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. The directors will be repaid such reasonable travelling, hotel and other expenses as they incur in and about the business of the Company and if any director will perform any professional or other services for the Company that in the opinion of the directors are outside the ordinary duties of a director or will otherwise be specially occupied in or about the Company's business, he may be paid a remuneration to be fixed by the Board, or, at the option of such director, by the Company in a general meeting, and such remuneration may be either in addition to, or in substitution for any other remuneration that he may be entitled to receive. The directors on behalf of the Company, unless otherwise determined by ordinary resolution, may pay a gratuity or pension or allowance on retirement to any director who has held any salaried office or place of profit with the Company or to his spouse or dependants and may make contributions to any fund and pay premiums for the purchase or provision of any such gratuity, pension or allowance.

**<u>PART 12 - ELECTION AND REMOVAL OF DIRECTORS</u>**

**Election of directors**

**12.1** At every annual general meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the shareholders entitled to vote at the annual general meeting for the election or appointment of directors
must elect or appoint a board of directors consisting of the number of directors for the time being required under these Articles, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** all the directors cease to hold office immediately before the election or appointment of directors under
paragraph (a), but are eligible for re-election or reappointment.

**Shareholders' resolutions**

**12.2** If the Company is, or becomes, a company that is not a reporting company and the business to be transacted at any annual general meeting is consented to in writing by all the shareholders who are entitled to attend and vote at such annual general meeting will be deemed for the purpose of these Articles to have been held on such written consent becoming effective.

**Nano Innovations Inc.**

**Failure to elect or appoint directors**

**12.3** If the Company fails to hold an annual general meeting in accordance with the *Business Corporations Act* or fails, at an annual general meeting, to elect or appoint any directors, the directors then in office continue to hold office until the earlier of

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the date on which the failure is remedied, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** the date on which they otherwise cease to hold office under the *Business Corporations Act* or these Articles.

**Casual vacancies**

**12.4** Any casual vacancy occurring in the Board of Directors may be filled by the remaining directors or director.

**Additional directors**

**12.5** Despite Articles 11.1 and 11.2, the directors may appoint one or more additional directors, but the number of additional directors appointed under this Article must not at any time exceed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** one-third of the number of first directors, if, at the time of the appointments, one or more of the first
directors have not yet completed their first term of office, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** in any other case, one-third of the number of the current directors who were elected or appointed as directors
other than under this Article.

**Directors' acts valid despite vacancy**

**12.6** An act or proceeding of the directors is not invalid merely because fewer than the number of directors required by Article 11.1 are in office.

**Alternate director**

**12.7** Any director may by instrument in writing delivered to the Company appoint any person to be his alternate to act in his place at meetings of the directors at which he is not present unless the directors will have reasonably disapproved the appointment of such person as an alternate director and will have given notice to that effect to the director appointing the alternate director within a reasonable time after delivery of such instrument to the Company. Every such alternate will be entitled to notice of meetings of the directors and to attend and vote as a director at a meeting at which the person appointing him is not personally present, and, if he is a director, to have a separate vote on behalf of the director he is representing in addition to his own vote. A director may at any time by instrument, telegram, telex or any method of transmitting legibly recorded messages delivered to the Company revoke the appointment of an alternate appointed by him. The remuneration payable to such an alternate will be payable out of the remuneration of the director appointing him.

**Vacancy**

**12.8** The office of director will be vacated if the director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** resigns his office by notice in writing delivered to the registered office of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** is convicted of an indictable offence and the other directors will have resolved to remove him; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** ceases to be qualified to act as a Director pursuant to the *Business Corporations Act*.

**Removal of director**

**12.9** The Company may by special resolution remove any director before the expiration of his period of office, and may by an ordinary resolution appoint another person in his stead.

**Nano Innovations Inc.**

**<u>PART 13 - POWERS AND DUTIES OF DIRECTORS</u>**

**Management of business**

**13.1** The Board must, subject to the *Business Corporations Act* and these Articles, manage or supervise the management of the business and affairs of the Company.

**Power of attorney**

**13.2** The Board may from time to time by power of attorney or other instrument under the seal, appoint any person to be the attorney of the Company for such purposes, and with such powers, authorities and discretions (not exceeding those vested in or exercisable by the Board under these Articles and excepting the powers of the directors relating to the constitution of the Board and of any of its committees and the appointment or removal of officers and the power to declare dividends) and for such period, with such remuneration and subject to such conditions as the Board may think fit, and any such appointment may be made in favour of any person, firm or corporation, and any such power of attorney may contain such provisions for the protection or convenience of persons dealing with such attorney as the Board thinks fit. Any such attorney may be authorized by the Board to sub-delegate all or any of the powers, authorities and discretions for the time being vested in him.

**<u>PART 14 - DISCLOSURE OF INTEREST OF DIRECTORS</u>**

**Disclosure of interest**

**14.1** A director who is, in any way, directly or indirectly interested in an existing or proposed contract or transaction with the Company or who holds any office or possesses any property whereby, directly or indirectly, a duty or interest might be created to conflict with his duty or interest as a director will declare the nature and extent of his interest in such contract or transaction or of the conflict or potential conflict with his duty and interest as a director, as the case may be, in accordance with the provisions of the *Business Corporations Act.*

**Voting restrictions and exemptions**

**14.2** A director will not vote in respect of any such contract or transaction with the Company in which he is interested and if he will do so his vote will not be counted, but he will be counted in the quorum present at the meeting at which such vote is taken. Subject to the provisions of the *Business Corporations Act,* the foregoing prohibitions will not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** any such contract or transaction relating to a loan to the Company, which a director or a specified corporation
or a specified firm in which he has an interest has guaranteed or joined in guaranteeing the repayment of the loan or any part of the
loan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** any contact or transaction made or to be made with, or for the benefit of, a holding corporation or a
subsidiary corporation of which a director is a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** any contract by a director to subscribe for or underwrite shares of debentures to be issued by the Company
or a subsidiary of the Company, or any contract, arrangement or transaction in which a director is, directly or indirectly, interested
if all the other directors are also, directly or indirectly, interested in the contract, arrangement, or transaction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** determining the remuneration of the directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** purchasing and maintaining insurance to cover directors against
liability incurred by them as directors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.** the indemnification of any director by the Company.

These exceptions may from time to time be suspended or amended to any extent approved by the Company, in a general meeting and permitted by the *Business Corporations Act*, either generally or in respect of any particular contract or transaction or for any particular period.

**Nano Innovations Inc.**

**Other office of director**

**14.3** A director may hold any office or place of profit with the Company (other than the office of auditor of the Company) in addition to his or her office of director for the period and on the terms (as to remuneration or otherwise) that the directors may determine.

**No disqualification**

**14.4** No director or intended director will be disqualified by his office from contracting with the Company either with regard to his tenure of any such other office or place of profit or as vendor, purchaser or otherwise, and, subject to compliance with the provisions of the *Business Corporations Act,* no contract or transaction entered into by or on behalf of the Company in which a director is in any way interested will be liable to be voided by reason thereof.

**Professional services by director or officer**

**14.5** Subject to compliance with the provisions of the *Business Corporations Act,* a director or officer of the Company, or any corporation or firm in which that individual has an interest, may act in a professional capacity for the Company, except as auditor of the Company, and the director or officer or such corporation or firm is entitled to remuneration for professional services as if that individual were not a director or officer.

**Accountability**

**14.6** A director may be or become a director or other officer or employee of, or otherwise be interested in, any corporation or firm in which the Company may be interested as a shareholder or otherwise, and subject to compliance with the provisions of the *Business Corporations Act*, such director will not be accountable to the Company for any remuneration or other benefits received by him as director, officer or employee of, or from his interest in such other corporation or firm, unless the Company in a general meeting otherwise directs.

**<u>PART 15 - PROCEEDINGS OF THE DIRECTORS</u>**

**Board meetings**

**15.1** The directors may meet together for the conduct of business, adjourn and otherwise regulate the Board meetings as they think fit, and Board meetings held at regular intervals may be held at the place, at the time and on the notice, if any, that the Board may by resolution from time to time determine.

**Chair of Board meetings**

**15.2** Board meetings will be chaired by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the chair of the Board, if any,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** in the absence of the chair of the Board, the president, if
any, if the president is a director, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** any other director chosen by the directors if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** neither the chair of the Board nor the president, if a director,
is present at the meeting within 15 minutes after the time set for holding the meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** neither the chair of the board nor the president, if a director,
is willing to chair the meeting, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii.** the chair of the board and the president, if a director, have
advised the secretary, if any, or any other director, that they will not be present at the meeting.

**Participation in Board meetings**

**15.3** A director may participate in a Board meeting or of any committee of the directors by means of conference telephones or other communications facilities by means of which all directors participating in the meeting can hear each other and provided that all such directors agree to such participation. A director participating in a Board meeting in accordance with this Article will be deemed to be present at the meeting and to have so agreed and will be counted in the quorum therefor and be entitled to speak and vote thereat.

**Nano Innovations Inc.**

**Voting at Board meetings**

**15.4** Questions arising at any Board meeting are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the Board meeting does not have a second or casting vote.

**Calling of Board meeting**

**15.5** A director may, and the corporate secretary, if any, on request of a director must, call a meeting of the board at any time.

**Notice of Board meeting**

**15.6** Subject to Articles 15.6 and 15.7, if a Board meeting is called under Article 15.5, reasonable notice of that Board meeting, specifying the place, date and time of that meeting, must be given to each of the directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** by mail addressed to the director's address as it appears on the books of the Company or to any
other address provided to the Company by the director for this purpose,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** by leaving it at the director's prescribed address or at any other address provided to the Company
by the director for this purpose, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** orally, by delivery of written notice or by telephone, voice mail, e-mail, fax or any other method of
legibly transmitting messages.

**When notice not required**

**15.7** It is not necessary to give notice of a Board meeting to a director if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the Board meeting is to be held immediately following a shareholders'
meeting at which that director was elected or appointed or is the Board meeting at which that director is appointed, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** the director has filed a waiver under Article 15.9.

**Board meeting valid despite failure to give notice**

**15.8** The accidental omission to give notice of any Board meeting to any director, or the non-receipt of any notice by any director, does not invalidate any proceedings at that Board meeting.

**Waiver of notice of Board meetings**

**15.9** Any director may file with the Company a document signed by the director waiving notice of any past, present or future Board meeting and may at any time withdraw that waiver with respect to Board meetings held after that withdrawal.

**Effect of waiver**

**15.10** After a director files a waiver under Article 15.9 with respect to future Board meetings, and until that waiver is withdrawn, notice of any Board meeting need not be given to that director unless the director otherwise requires in writing to the Company.

**Quorum**

**15.11** The quorum necessary for the transaction of the business of the directors may be set by the directors and, if not so set, is a majority of the directors.

**Nano Innovations Inc.**

**Quorum of one director**

**15.12** If, in accordance with Article 11.1, the number of directors is one, the quorum necessary for the transaction of the business of the directors is one director, and that director may constitute a Board meeting.

**Board meeting adjourned**

**15.13** If within 30 minutes from the time appointed for a Board meeting a quorum is not present, the Board meeting will stand adjourned to the same day in the next week, at the same time and place, and if at the adjourned Board meeting a quorum is not present within 30 minutes from the time appointed for the Board meeting, the quorum will remain a simple majority of the directors in office.

**Continuing directors**

**15.14** The continuing directors may act notwithstanding any vacancy in their body, but, if and so long as the number is reduced below the number fixed pursuant to these Articles as the necessary quorum of directors, the continuing directors may act for the purpose of increasing the number of directors to that number, or of summoning a general meeting of the Company, but for no other purpose.

**Validity of acts of directors**

**15.15** Subject to the provisions of the *Business Corporations Act,* all acts done by any meeting of the directors or of a committee of directors, or by any person acting as a director, will, notwithstanding that it be afterwards discovered that there was some defect in the qualification, election or appointment of any such directors or of the shareholders of such committee or person acting as aforesaid, or that they or any of them were disqualified, be as valid as if every such person had been duly elected or appointed and was qualified to be a director.

**Resolutions in writing**

**15.16** A resolution consented to in writing. whether by document, telegram, telex or any method of transmitting legibly recorded messages or other means, by all of the directors will be as valid and effectual as if it had been passed at a meeting of the directors duly called and held. Such resolution may be in two or more counterparts, which together will be deemed to constitute one resolution in writing. Such resolution will be filed with the minutes of the proceedings of the directors and will be effective on the date stated thereon or on the latest date stated on any counterpart.

**<u>PART 16 - EXECUTIVE AND OTHER COMMITTEES</u>**

**Appointment of committees**

**16.1** The directors may, by resolution,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** appoint one or more committees consisting of the director or
directors that they consider appropriate,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** delegate to a committee appointed under paragraph (a) any of
the directors' powers, except

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** the power to fill vacancies in the board,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** the power to change the membership of, or fill vacancies in,
any committee of the board, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**iii.** the power to appoint or remove officers appointed by the board,
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** make any delegation referred to in paragraph (b) subject to
the conditions set out in the resolution.

**Obligations of committee**

**16.2** Any committee formed under Article 16.1, in the exercise of the powers delegated to it, must

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** conform to any rules that may from time to time be imposed on
it by the directors, and

**Nano Innovations Inc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** report every act or thing done in exercise of those powers to
the earliest meeting of the directors to be held after the act or thing has been done.

**Powers of Board**

**16.3** The Board may, at any time,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** revoke the authority given to a committee, or override a decision
made by a committee, except as to acts done before such revocation or overriding,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** terminate the appointment of, or change the membership of, a
committee, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** fill vacancies in a committee.

**Committee meetings**

**16.4** Subject to Article 16.2 (a),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** the members of a directors' committee may meet and adjourn
as they think proper,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** a directors' committee may elect a chair of its meetings
but, if no chair of the meeting is elected, or if at any meeting the chair of the meeting is not present within 15 minutes after the
time set for holding the meeting, the directors present who are members of the committee may choose one of their number to chair the
meeting,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** a majority of the members of a directors' committee constitutes
a quorum of the committee, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** questions arising at any meeting of a directors' committee
are determined by a majority of votes of the members present, and in case of an equality of votes, the chair of the meeting has no second
or casting vote.

**<u>PART 17 - OFFICERS</u>**

**Appointment of officers**

**17.1** The Board may, from time to time, appoint any officer that it considers necessary, and none of the individuals appointed as officers need be a member of the board.

**Functions, duties and powers of officers**

**17.2** The Board may, for each officer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** determine the functions and duties the officer is to perform,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** entrust to and confer on the officer any of the powers exercisable
by the directors on such terms and conditions and with such restrictions as the directors think fit, and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** from time to time revoke, withdraw, alter or vary all or any
of the functions, duties and powers of the officer.

**Remuneration**

**17.3** All appointments of officers are to be made on the terms and conditions and at the remuneration (whether by way of salary, fee, commission, participation in profits or otherwise) that the Board thinks fit and are subject to termination at the discretion of the Board. The remuneration of the officers of the Company and such the terms and conditions of their tenure of office or employment will from time to time be determined by the directors; such remuneration may be by way of salary, fees, wages, commission or participation in profits or any other means or all of these modes, and an officer may, in addition to such remuneration, be entitled to receive after he ceases to hold such office or leaves the employment of the Company a pension or gratuity.

**Nano Innovations Inc.**

**Disclosure of conflicts**

**17.4** Every officer of the Company who holds any office or possesses any property whereby, whether directly or indirectly, duties or interests might be created in conflict with his duties or interests as an officer of the Company will, in writing, disclose to the Board the fact and the nature, character and extent of the conflict.

**<u>PART 18 - INDEMNITY AND PROTECTION OF DIRECTORS, OFFICERS AND EMPLOYEES</u>**

**Indemnification of directors**

**18.1** The Board must cause the Company to indemnify its directors and former directors, and their respective heirs and personal or other legal representatives to the greatest extent permitted by Division 5 of Part 5 of the *Business Corporations Act.* Subject to the provisions of the *Business Corporations Act,* the Board will cause the Company to indemnify a director or former director of the Company, and the Board may cause the Company to indemnify a director or former director of a corporation of which the Company is or was a shareholder, and the heirs and personal representatives of any such person, against all costs, charges and expenses, actually and reasonably incurred by him or them including an amount paid to settle an action or satisfy a judgement in a civil, criminal or administrative action or proceeding to which he or they are made a party by reason of his being or having been a director of the Company or a director of such corporation, including any action brought by the Company or any such corporation. Each director of the Company on being elected or appointed will be deemed to have contracted with the Company on the terms of the foregoing indemnity.

**Indemnification of officers, employees and agents**

**18.2** Subject to the provisions of the *Business Corporations Act,* the Board may cause the Company to indemnify any officer, employee or agent of the Company or of a corporation of which the Company is or was a shareholder (notwithstanding that he is also a director), and his heirs and personal representatives against all costs, charges and expenses whatsoever incurred by him or them and resulting from his acting as an officer, employee or agent of the Company or such corporation. Each officer, employee and agent will be deemed to have contracted with the Company on the terms of the foregoing indemnity.

**Failure to comply**

**18.3** The failure of a director or officer of the Company to comply with the provisions of the *Business Corporations Act* or of these Articles will not invalidate any indemnity to which he is entitled under this Part.

**Insurance**

**18.4** The Board may cause the Company to purchase and maintain insurance for the benefit of any person who is or was serving as a director, officer, employee or agent of the Company or as a director, officer, employee or agent of any corporation of which the Company is or was a shareholder and his heirs or personal representatives against any liability incurred by him as such director, officer, employee or agent.

**<u>PART 19 - DIVIDENDS AND RESERVE</u>**

**Declaration of dividends**

**19.1** Subject to the rights, if any, of shareholders holding shares with special rights as to dividends, the directors may from time to time declare and authorize payment of any dividends the directors consider appropriate.

**No notice required**

**19.2** The directors need not give notice to any shareholder of any declaration under Article 19.1.

**Directors may determine when dividend payable**

**19.3** Any dividend declared by the Board on shares of any class may be made payable on such date as is fixed by the Board.

**Nano Innovations Inc.**

**Dividends to be paid in accordance with number of shares**

**19.4** Subject to the rights of the shareholders, if any, holding shares with special rights as to dividends, all dividends on shares of any class or series of shares will be declared and paid according to the number of such shares held.

**Manner of paying dividend**

**19.5** A resolution declaring a dividend may direct payment of the dividend wholly or partly by the distribution of specific assets or of paid up shares or fractional shares, bonds, debentures or other debt obligations of the Company, or in any one or more of those ways, and, if any difficulty arises in regard to the distribution, the directors may settle the difficulty as they consider expedient, and, in particular, may set the value for distribution of specific assets.

**Receipt by joint shareholders**

**19.6** If several persons are joint shareholders of any share, any one of them may give an effective receipt for any dividend, bonus or other money payable in respect of the share.

**Dividend bears no interest**

**19.7** No dividend will bear interest against the Company.

**Fractional dividends**

**19.8** If a dividend to which a shareholder is entitled includes a fraction of the smallest monetary unit of the currency of the dividend, that fraction may be disregarded in making payment of the dividend and that payment represents full payment of the dividend.

**Payment of dividends**

**19.9** Any dividend or other distribution payable in cash in respect of shares may be paid by cheque, made payable to the order of the person to whom it is sent, and mailed,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** subject to paragraphs (b) and (c), to the address of the shareholder,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** subject to paragraph (c), in the case of joint shareholders,
to the address of the joint shareholder whose name stands first on the Shareholders' List in respect of the shares, or,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** to the person and to the address as the shareholder or joint
shareholders may direct in writing.

Every such cheque or warrant will be made payable to the order of the person to whom it is sent. The mailing of such cheque or warrant will, to the extent of the sum represented thereby (plus the amount of the tax required by law to be deducted) discharge all liability for the dividend, unless such cheque or warrant will not be paid on presentation or the amount of tax so deducted will not be paid to the appropriate taxing authority.

**Stock dividends**

**19.10** Notwithstanding anything contained in these Articles the directors may from time to time capitalize any undistributed surplus on hand of the Company and may from time to time issue as fully paid and non-assessable any unissued shares, or any bonds, debentures or debt obligations of the Company as a dividend representing such undistributed surplus on hand or any part thereof.

**Nano Innovations Inc.**

**<u>PART 20 - DOCUMENTS, RECORDS AND REPORTS</u>**

**Corporate records**

**20.1** The Company will keep at its records office or at such other place as the *Company Act* may permit, the documents, copies, registers, minutes and records which the Company is required by the *Business Corporations Act* to keep at its records office or such other place, as the case may be.

**Accounting records**

**20.2** The Company will cause to be kept proper accounting books and accounting records in respect of all financial and other transactions of the Company in order to properly record the financial affairs and condition of the Company and to comply with the *Business Corporations Act*.

**Inspection by shareholder**

**20.3** Unless the Board determines otherwise, or unless otherwise determined by an ordinary resolution, no shareholder of the Company will be entitled to inspect the accounting records of the Company.

**Financial statements**

**20.4** The Board will from time to time at the expense of the Company cause to be prepared and laid before the Company in a general meeting such financial statements and reports as are required by the *Business Corporations Act.*

**<u>PART 21 - NOTICES</u>**

**Delivery of notice**

**21.1** A notice, statement or report may be given or delivered by the Company to any shareholder either by delivery to him personally or by sending it by mail to him to his address as recorded in the Shareholders' List. Where a notice, statement or report is sent by mail, service or delivery of the notice, statement or report will be deemed to be effected by properly addressing, prepaying and mailing the notice, statement or report and to have been given on the day, Saturdays, Sundays and holidays excepted, following the date of mailing. A certificate signed by the corporate secretary or other officer of the Company or of any other corporation acting in that behalf for the Company that the letter, envelope or wrapper containing the notice, statement or report was so addressed, prepaid and mailed will be conclusive evidence thereof.

**Notice to joint shareholders**

**21.2** A notice, statement or report may be given or delivered by the Company to the joint holders of a share by giving the notice to the joint holder first named in the Shareholders' List in respect of the share.

**Notice to trustees**

**21.3** If a person becomes entitled to a share as a result of the death, bankruptcy or incapacity of a shareholder, the Company may provide a notice, statement, report or other record to that person by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** mailing the record, addressed to that person

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** by name, by the title of representative of the deceased or incapacitated
shareholder, by the title of trustee of the bankrupt shareholder or by any similar description, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** at the address, if any, supplied to the Company for that purpose
by the person claiming to be so entitled, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** if an address referred to in Article 21.3 a. ii has not been
supplied to the Company, by giving the notice in a manner in which it might have been given if the death, bankruptcy or incapacity had
not occurred.

**Nano Innovations Inc.**

**Notice of general meeting**

**21.4** Notice of every general meeting or meeting of shareholders holding a specific class of shares will be given in a manner hereinbefore authorized to every shareholder holding at the time of the issue of the notice or the date fixed for determining the shareholders entitled to such notice, whichever is the earlier, such shares which confer the right to notice of and to attend and vote at any such meeting. No other person except the auditor of the Company and the directors of the Company will be entitled to receive notices of any such general meeting.

**<u>PART 22 - RECORD DATES</u>**

**Setting a record date**

**22.1** The Board may fix in advance a date, which will not be more than the maximum number of days permitted by the *Business Corporations Act* preceding the date of any general meeting or any class thereof or of the payment of any dividend or of the proposed taking of any other proper action requiring the determination of shareholders as the record date for the determination of the shareholders entitled to notice of, or to attend and vote at, any such meeting and any adjournment thereof, or entitled to receive payment of any such dividend or for any other proper purpose and, in such case, notwithstanding anything elsewhere contained in these Articles, only shareholders of record on the date so fixed will be deemed to be shareholders for the purposes aforesaid.

**No record date fixed**

**22.2** Where no record date is so fixed for the determination of shareholders as provided in the preceding Article the date on which the notice is mailed or on which the resolution declaring the dividend is adopted, as the case may be, will be the record date for such determination.

**<u>PART 23 - CORPORATE SEAL</u>**

**Authorization**

**23.1** The Board may provide a corporate seal for the Company and, if they do so, will provide for the safe custody of the corporate seal, which will not be affixed to any instrument except in the presence of the following persons, namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** any two directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** any officer, together with any director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** if the Company has only one director, that director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** if the Company has only one shareholder, the president or the corporate secretary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** such person or persons as the directors may from time to time by resolution appoint;

and the said directors, officers, person or persons in whose presence the corporate seal is so affixed to an instrument will sign such instrument.

**Corporate seal**

**23.2** For the purpose of certifying under seal a true copy of any resolution or other document, the seal must be impressed on that copy and, despite Article 23.1, may be attested by the signature of any director or officer.

**Nano Innovations Inc.**

**Affixing corporate seal to securities**

**23.3** To enable the corporate seal of the Company to be affixed to any bonds, debentures, share certificates, or other securities of the Company, whether in definitive or interim form, on which facsimiles of any of the signatures of the directors or officers of the Company are, in accordance with the *Business Corporations Act* and/or these Articles, printed or otherwise mechanically reproduced there may be delivered to the firm or company employed to engrave, lithograph or print such definitive or interim bonds, debentures, share certificates or other securities one or more unmounted dies reproducing the Company's corporate seal, and the Chair of the Board, the president, the managing director, a director and a vice-president together with one of the corporate secretary, the treasurer, the secretary treasurer, an assistant secretary, an assistant treasurer and an assistant secretary treasurer may by a document authorize such firm or company to cause the Company's corporate seal to be affixed to such definitive or interim bonds, debentures, share certificates or other securities by the use of such dies. Bonds, debentures, share certificates or other securities to which the Company's corporate seal has been affixed will for all purposes be deemed to be under and to bear the Company's corporate seal lawfully affixed thereto.

**Use in other jurisdictions**

**23.4** The Company may have for the use in any other province, state, territory or country an official seal which will have on its own face the name of the province, state, territory or country where it is to be used and all the powers where conferred by the *Business Corporations Act* with respect thereto may be exercised by the Board or by a duly authorized agent of the Company.

**<u>PART 24 - ALTERATIONS</u>**

**Alteration of Authorized Share Structure**

**24.1** Subject to the *Business Corporations Act,* the Company may by resolution of the board of directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** alter the identifying name of any of its shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** subdivide or consolidate any of its unissued shares or any of
its fully paid and issued shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** 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;**i.** decrease the par value of those shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**ii.** 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;**f.** change any of its unissued shares or any of its fully paid and
issued shares with par value into shares without par value or any of its unissued shares without par value into shares with par value;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**g.** otherwise alter its shares or authorized share structure when
required or permitted to do so by the *Business Corporations Act*.

**Change of Name**

**24.2** The Company may by resolution of the board of directors authorize an alteration of its Notice of Articles in order to change its name or adopt or change any translation of that name.

**Nano Innovations Inc.**

**Other Alteration**

**24.3** If the *Business Corporations Act* does not specify the type of resolution and these Articles do not specify another type of resolution, the Company may by ordinary resolution alter these Articles.

**<u>PART 25 - RESTRICTIONS</u>**

**Public company**

**25.1** Articles 25.2 does not apply to the Company if and for so long as it is a public company or a pre-existing reporting company.

**Consent required for transfer**

**25.2** No shares may be sold, transferred or otherwise disposed of without the consent of the directors expressed by a resolution of the Board. The Board will not be required to give any reason for refusing to consent to any such any such sale, transfer or other disposition of shares.

**<u>PART 26 - SPECIAL RIGHTS AND RESTRICTIONS</u>**

**Special rights and restrictions - Common Voting Shares**

**26.1** The following are the special rights and restrictions attached to the Common Voting Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Voting rights attached to the Common Voting Shares**:

The registered holders of the Common Voting Shares will be entitled to notice of and to one vote for each Common Voting Share held at all meetings of shareholders of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Dividend rights attached to the Common Voting Shares**:

The registered holders of the Common Voting Shares will be entitled to receive on the date fixed for payment thereof, and the Company will pay thereon, such dividends as the Board may in its sole discretion declare from time to time, out of the money of the Company properly applicable to the payment of dividends.

**Special rights and restrictions - Founder Shares**

**26.2** The following are the special rights and restrictions attached to the Founder Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Voting rights attached to the Founder Shares**:

The registered holders of the Founder Shares will not have any voting rights for the election of directors or for any other purpose, nor will they be entitled to notice of meetings of shareholders of the Company, other than in respect of separate meetings of the registered holders of the Founder Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Dividends on the Founder Shares**:

The registered holders of the Founder Shares will be entitled to receive on the date fixed for payment thereof, and the Company will pay thereon, such dividends as the Board may in its sole discretion declare from time to time, out of the money of the Company properly applicable to the payment of dividends. In addition, the Board may determine whether the dividend entitlement of any Founder Share determined by this Article 26.2 may be in priority or subordinate to the dividend rights attaching to any other authorized classes of shares of the Company. The registered holders of the Founder Shares will not be entitled to any dividends other than or in excess of the dividends so declared.

**Nano Innovations Inc.**

**Special rights and restrictions - Preferred Shares**

**26.3** The following are the special rights and restrictions attached to the Preferred Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Preferred Shares to be Issued in Series**:

The Board of Directors of the Company may from time-to-time issue the Preferred Shares in one or more series, each series to consist of such numbers of shares as may be determined before issuance thereof by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Creation of Series of Preferred Shares**:

The Board of Directors of the Company may by resolution alter the Articles of the Company to create any series of Preferred Shares and to fix before issuance, the designation, rights, privileges, restrictions, and conditions to attach to the Preferred Shares of each series, including, without limiting the generality of the foregoing, the rate, form, entitlement and payment of preferential dividends, the dates and place to payment thereof, the redemption price, terms, procedures and conditions of redemption, if any, voting rights and conversion rights (if any) and any sinking fund, purchase fund or other provisions attaching to the Preferred Shares of such series; and provided, however, that no shares of any series shall be issued until the Company has filed an alteration to the Notice of Articles with the Registrar of Companies, or such designated person in any other jurisdiction in which the Company may be continued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** **Voting rights attached to the Preferred Shares**:

The registered holders of the Preferred Shares will not have any voting rights for the election of directors or for any other purpose, nor will they be entitled to notice of meetings of shareholders of the Company, other than in respect of separate meetings of the registered holders of the designated series of Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** **Dividends on the Preferred Shares**:

The designated series of Preferred Shares will bear dividends at the rate as determined by the Board at the time of creation of such series of such shares, and failing determination by the directors at the time of creation, the Preferred Shares will receive dividends as determined by the Board from time to time. In addition, the Board may determine whether the dividend entitlement of any Preferred Share determined by this Article 26.3 may be in priority or subordinate to the dividend rights attaching to any other authorized classes of shares of the Company. The registered holders of any designated series of Preferred Shares will not be entitled to any dividends other than or in excess of the dividends so declared.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** **Redemption price of Preferred Shares**:

The redemption price in respect of a Preferred Share will be determined by the Board at the time of the creation of such series of such Preferred Shares (the "**Preferred Redemption Price**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** **Redeemable Preferred Shares**:

The Preferred Shares of any series or any part thereof, will be redeemable by the Company at the applicable Preferred Redemption Price together with all dividends declared and unpaid on such shares (collectively the "**Preferred Redemption Amount**") at any time at the option of the Board without the consent of the registered holders of the series of Preferred Shares. If less than all of the Preferred Shares in a series are to be redeemed they will be redeemed pro rata, other than with the consent of all registered holders of the series of Preferred Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.** **Notice of redemption of Preferred Shares**:

Any notice of redemption in respect of a Preferred Share will be determined by the Board at the time of the creation of such series of Preferred Shares.

**Nano Innovations Inc.**

**Special rights and restrictions - Dividends**

**26.4** Subject to the restrictions contained in these Articles and any restrictions created in accordance with these Articles, the Board may by resolution, in its absolute discretion, declare dividends in favour of any one or more of the Common Voting shares, the Founder Shares, and the Preferred Shares independently of the other classes.

**Special rights and restrictions - Disposition on dilution**

**26.5** In the event of the liquidation, dissolution or winding up of the Company or other distribution of its assets among the shareholders for the purpose of winding up its affairs, distribution of the property and assets of the Company will be made on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** first, pro rata in accordance with the number of shares then held, to the registered holders of any particular series of Preferred
Shares the applicable liquidation amount for such shares, as determined by the Board at the time of creation of such series of Preferred
Shares, and they will not be entitled to share any further in the distribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** second, half of the remaining property and assets of the Company to the registered holders of the Founder Shares pro rata in accordance
with the number of shares then held; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** last, the balance of the property and assets of the Company to the registered holders of the Common Voting Shares pro rata in accordance
with the number of shares then held.

♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦♦

---

| | |
|:---|:---|
| **Full name and signature of each incorporator** | **Date of signing** |
| **Don Nicholson** | **09 November 2017** |

---

**Nano Innovations Inc.**

## Exhibit 3.3

**Exhibit 3.3**

**CORPORATE ACCESS NUMBER: 2024479715**

**Government of**

**Alberta** 

**BUSINESS CORPORATIONS ACT**

**CERTIFICATE** 

**OF** 

**CONTINUANCE**

**ADVEN INC. (FORMERLY: NANO INNOVATIONS INC.)**

CONTINUED FROM BRITISH COLUMBIA TO ALBERTA ON 2022/07/27.

![](cm281_ex3-3img01.jpg)

**Articles of Continuance**

**For**

**ADVEN INC.**

---

| | |
|:---|:---|
| **Share Structure:** | SEE ATTACHED SCHEDULE OF SHARE CAPITAL. |
| **Share Transfers** | THE TRANSFER OF SHARES IS RESTRICTED IN ACCORDANCE WITH THE |
| **Restrictions:** | OTHER RULES OR PROVISIONS OF THESE ARTICLES. |
| **Number of Directors:** |  |
| **Min Number of Directors:** | 1 |
| **Max Number of Directors:** | 10 |
| **Business Restricted To:** |  |
| **Business Restricted From:** |  |
| **Other Provisions:** | SEE ATTACHED SCHEDULE OF OTHER PROVISIONS. |

---

---

| | |
|:---|:---|
| **Registration Authorized By:** | JOANNA DAWSON |
|  | SOLICITOR |

---

SCHEDULE OF SHARE CAPITAL

The Corporation is authorized to issue:

(a) one class of shares, to be designated as "Common Shares", in an unlimited number; and

(b) one class of shares, to be designated as "Preferred Shares", issuable in series, in an unlimited number; such shares having attached thereto the following rights, privileges, restrictions and conditions:

A. Common Shares

The Common Shares shall have attached thereto the following rights, privileges, restrictions and conditions:

(i) the right to one vote at all meetings of shareholders of the Corporation, except meetings at which only holders of a specified class of shares are entitled to vote;

(ii) subject to the prior rights and privileges attaching to any other class of shares of the Corporation, the right to receive any dividend declared by the Corporation; and

(iii) subject to the prior rights and privileges attaching to any other class of shares of the Corporation, the right to receive the remaining property and assets of the Corporation upon dissolution.

B. Preferred Shares

The Preferred Shares shall have attached thereto the following rights, privileges, restrictions and conditions:

(i) the Preferred Shares may at any time and from time to time be issued in one or more series as designated by the directors of the Corporation, each series to consist of such number of shares as may, before the issue thereof, be determined by resolution of the directors of the Corporation; and

(ii) subject to the provisions of the Business Corporations Act (Alberta), the directors of the Corporation may by resolution fix from time to time before the issue thereof the designation, rights, privileges, restrictions and conditions attaching to each series of the Preferred Shares, including, but without limiting or restricting the generality of the foregoing:

a. the rate or amount of dividends (whether cumulative, non-cumulative or partially cumulative) and the dates and places of payment thereof,

b. the consideration for, and the terms and conditions of, any purchase for cancellation or redemption thereof (including redemption after a fixed term or at a premium)

c. the terms and conditions of any conversion or exchange rights,

d. the terms and conditions of any share purchase plan or sinking fund,

e. restrictions respecting payment of dividends on, or the repayment of capital in respect of, any other shares of the Company, and

f. any voting rights and restrictions attached to the series of Preferred Shares;

or alter any such special rights or restrictions, but no such special right or restriction shall contravene the provisions of this Schedule of Share Capital.

(iii) The holders of Preferred Shares shall be entitled, on the liquidation or dissolution of the Corporation, whether voluntary or involuntary, or on any other distribution of its assets among its shareholders for the purpose of winding up its affairs, to receive, before any distribution is made to the holders of Common Shares or any other shares of the Company ranking junior to the Preferred Shares with respect to repayment of capital on the liquidation or dissolution of the Company, whether voluntary or involuntary, or on any other distribution of its assets among its shareholders for the purpose of winding up its affairs, the amount paid up with respect to each Preferred Share held by them, together with the fixed premium (if any) thereon, all accrued and unpaid cumulative dividends (if any and if preferential) thereon, which for such purpose shall be calculated as if such dividends were accruing on a day-to-day basis up to the date of such distribution, whether or not earned or declared, and all declared and unpaid non-cumulative dividends (if any and if preferential) thereon. After payment to the holders of 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.

(iv) The directors of the Corporation are hereby authorized to issue any shares of any series of Preferred Shares designated by the directors at and for such consideration as be determined by resolution of the directors of the Corporation

C. Dividends

The holders of the shares, or any series thereof need not rank equally nor be treated equally in the declaration or payment of dividends and the Board of Directors shall have full and absolute discretion to declare and pay dividends to the holders of one or more classes of shares, or any series thereof, to the exclusion of the other classes of shares, or any series thereof, and in different amounts to the holders of different classes of shares, or any series thereof; provided that all dividends paid on any particular class of shares, or any series thereof, shall be paid in proportion to the number of shares of such class, or any series thereof, that are held by each shareholder.

SCHEDULE OF OTHER PROVISIONS

1. Until such time as the Corporation is a "public company", no holder of securities of the Corporation (other than non-convertible debt securities of the Corporation) is entitled to transfer any securities without either:

(a) if the transfer of such securities is restricted by any security holders' agreement, complying with such restrictions in such agreement; or

(b) if there are no such restrictions, either:

(i) the approval of the directors of the Corporation expressed by a resolution passed by the directors at a meeting of the board of directors or by a resolution in writing signed by all of the directors of the Corporation; or

(ii) the approval of (A) the holders of at least a majority of the shares of the Corporation entitling the holders thereof to vote on that resolution expressed by a resolution passed at a meeting of the holders of such shares, or (B) all of the holders of shares of the Corporation entitling the holders thereof to vote on that resolution expressed by a resolution in writing signed by all of the holders of such shares.

For the purposes hereof, "public company" means a company that

(a) is a reporting issuer,

(b) is a reporting issuer equivalent,

(c) has registered its securities under the Securities Exchange Act of 1934 of the United States of America,

(d) has any of its securities, within the meaning of the Securities Act (Alberta), traded on or through the facilities of a securities exchange, or

(e) has any of its securities, within the meaning of the Securities Act (Alberta), reported through the facilities of a quotation and trade reporting system;

2. The Corporation is entitled to a lien on any share registered in the name of a shareholder or the shareholder's legal representative for a debt of that shareholder to the Corporation.

3. A holder of a fractional share is entitled to exercise voting rights and to receive dividends in respect of such fractional share.

4. Subject to the Business Corporations Act (Alberta), the directors may, between annual general meetings, appoint one or more additional directors of the Corporation to serve until the next annual general meeting, but the number of the additional directors shall not at any time exceed one-third of the number of directors who held office at the expiration of the last annual meeting of the Corporation.

![](cm281_ex3-3img02.jpg)

**SCHEDULE OF SHARE CAPITAL**

The Corporation is authorized to issue:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) one class of shares, to be designated as "**Common Shares** ",
in an unlimited number; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) one class of shares, to be designated as "**Preferred Shares** ",
issuable in series, in an unlimited number;

such shares having attached thereto the following rights, privileges, restrictions and conditions:

**A. Common Shares**

The Common Shares shall have attached thereto the following rights, privileges, restrictions and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the right to one vote at all meetings of shareholders of the Corporation,
except meetings at which only holders of a specified class of shares are entitled to vote;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to the prior rights and privileges attaching to any other
class of shares of the Corporation, the right to receive any dividend declared by the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subject to the prior rights and privileges attaching to any other
class of shares of the Corporation, the right to receive the remaining property and assets of the Corporation upon dissolution.

**B. Preferred Shares**

The Preferred Shares shall have attached thereto the following rights, privileges, restrictions and

conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Preferred Shares may at any time and from time to time be issued
in one or more series as designated by the directors of the Corporation, each series to consist of such number of shares as may, before
the issue thereof, be determined by resolution of the directors of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) subject to the provisions of the *Business Corporations Act* (Alberta), the directors of the Corporation may by resolution fix from time to time before the issue thereof the designation, rights,
privileges, restrictions and conditions attaching to each series of the Preferred Shares, including, but without limiting or restricting
the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the rate or amount of dividends (whether cumulative, non-cumulative or partially cumulative)
and the dates and places of payment thereof,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the consideration for, and the terms and conditions of, any purchase
for cancellation or redemption thereof (including redemption after a fixed term or at a premium)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the terms and conditions of any conversion or exchange rights,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the terms and conditions of any share purchase plan or sinking fund,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. restrictions respecting payment of dividends on, or the repayment
of capital in respect of, any other shares of the Company, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. any voting rights and restrictions attached to the series of Preferred
Shares;

or alter any such special rights or restrictions, but no such special right or restriction shall contravene the provisions of this Schedule of Share Capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The holders of Preferred Shares shall be entitled, on the liquidation
or dissolution of the Corporation, whether voluntary or involuntary, or on any other distribution of its assets among its shareholders
for the purpose of winding up its affairs, to receive, before any distribution is made to the holders of Common Shares or any other shares
of the Company ranking junior to the Preferred Shares with respect to repayment of capital on the liquidation or dissolution of the Company,
whether voluntary or involuntary, or on any other distribution of its assets among its shareholders for the purpose of winding up its
affairs, the amount paid up with respect to each Preferred Share held by them, together with the fixed premium (if any) thereon, all accrued
and unpaid cumulative dividends (if any and if preferential) thereon, which for such purpose shall be calculated as if such dividends
were accruing on a day-to-day basis up to the date of such distribution, whether or not earned or declared, and all declared and unpaid
non-cumulative dividends (if any and if preferential) thereon. After payment to the holders of 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The directors of the Corporation are hereby authorized to issue
any shares of any series of Preferred Shares designated by the directors at and for such consideration as be determined by resolution
of the directors of the Corporation

**C. Dividends**

The holders of the shares, or any series thereof need not rank equally nor be treated equally in the declaration or payment of dividends and the Board of Directors shall have full and absolute discretion to declare and pay dividends to the holders of one or more classes of shares, or any series thereof, to the exclusion of the other classes of shares, or any series thereof, and in different amounts to the holders of different classes of shares, or any series thereof; provided that all dividends paid on any particular class of shares, or any series thereof, shall be paid in proportion to the number of shares of such class, or any series thereof, that are held by each shareholder.

**SCHEDULE OF OTHER PROVISONS**

1. Until such time as the Corporation is a "public company", no holder of securities of the Corporation (other than non-convertible debt securities of the Corporation) is entitled to transfer any securities without either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the transfer of such securities is restricted by any security holders' agreement, complying
with such restrictions in such agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if there are no such restrictions,
either:

&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 approval of the directors of the Corporation expressed by a
resolution passed by the directors at a meeting of the board of directors or by a resolution in writing signed by all of the directors
of the Corporation; 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) the approval of (A) the holders of at least a majority of the shares
of the Corporation entitling the holders thereof to vote on that resolution expressed by a resolution passed at a meeting of the holders
of such shares, or (B) all of the holders of shares of the Corporation entitling the holders thereof to vote on that resolution expressed
by a resolution in writing signed by all of the holders of such shares.

For the purposes hereof, "public company" means a company that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is a reporting issuer,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is a reporting issuer
equivalent,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) has registered its securities
under the *Securities Exchange Act* of 1934 of the United States of America,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) has any of its securities,
within the meaning of the *Securities Act* (Alberta), traded on or through the facilities of a securities exchange, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) has any of its securities,
within the meaning of the *Securities Act* (Alberta), reported through the facilities
of a quotation and trade reporting system;

2. The Corporation is entitled to a lien on any share registered in the name of a shareholder or the shareholder's legal representative for a debt of that shareholder to the Corporation.

3. A holder of a fractional share is entitled to exercise voting rights and to receive dividends in respect of such fractional share.

4. Subject to the *Business Corporations Act* (Alberta), the directors may, between annual general meetings, appoint one or more additional directors of the Corporation to serve until the next annual general meeting, but the number of the additional directors shall not at any time exceed one-third of the number of directors who held office at the expiration of the last annual meeting of the Corporation.

**Continuance Into Alberta - Registration Statement**

**Alberta Registration Date: 2022/07/27**

**Corporate Access Number: 2024479715**

**Business Number: 785155318**

---

| | |
|:---|:---|
| **Service Request Number:** | 38019035 |
| **Alberta Corporation Type:** | Named Alberta Corporation |
| **Legal Entity Name:** | ADVEN INC. |
| **French Equivalent Name:** |  |
| **Nuans Number:** | 121655097 |
| **Nuans Date:** | 2022/07/26 |
| **French Nuans Number:** |  |
| **French Nuans Date:** |  |
| **REGISTERED ADDRESS** |  |
| **Street:** | 1700, 421 - 7TH AVENUE SW |
| **Legal Description:** |  |
| **City:** | CALGARY |
| **Province:** | ALBERTA |
| **Postal Code:** | T2P4K9 |
| **RECORDS ADDRESS** |  |
| **Street:** | 1700, 421 - 7TH AVENUE SW |
| **Legal Description:** |  |
| **City:** | CALGARY |
| **Province:** | ALBERTA |
| **Postal Code:** | T2P4K9 |
| **ADDRESS FOR SERVICE** |  |
| **BY MAIL** |  |
| **Post Office Box:** |  |
| **City:** |  |
| **Province:** |  |
| **Postal Code:** |  |
| **Email Address:** | ANNUAL.RETURNS@MCMILLAN.CA |
| **Share Structure:** | SEE ATTACHED SCHEDULE OF SHARE CAPITAL. |
| **Share Transfers** | THE TRANSFER OF SHARES IS RESTRICTED IN ACCORDANCE WITH |
| **Restrictions:** | THE OTHER RULES OR PROVISIONS OF THESE ARTICLES. |
| **Number of Directors:** |  |
| **Min Number Of Directors:** | 1 |
| **Max Number Of Directors:** | 10 |
| **Business Restricted To:** |  |
| **Business Restricted From:** |  |

---

---

| | |
|:---|:---|
| **Other Provisions:** | SEE ATTACHED SCHEDULE OF OTHER PROVISIONS. |
| **Professional Endorsement Provided:** |  |
| **Alberta Corporate Access Number:** |  |
| **Name In Previous Jurisdiction:** | NANO INNOVATIONS INC. |
| **Corporate Access Number in Previous Jurisdiction:** | BC1140815 |
| **Previous Canadian Jurisdiction:** | BRITISH COLUMBIA |
| **Previous Foreign Jurisdiction:** |  |
| **Date Created in Previous Jurisdiction:** | 2017/11/09 |
| **Business Number:** | 785155318 |
| **Future Dating Required:** |  |
| **Registration Date:** | 2022/07/27 |

---

**Agent for Service**

---

| | |
|:---|:---|
| **Agent for Service Type:** | Primary |
| **Last Name:** | MCILWAIN |
| **First Name:** | GREGORY |
| **Middle Name:** |  |
| **Firm Name:** | MCMILLAN LLP |
| **Street:** | 1700, 421 - 7TH AVENUE SW |
| **City:** | CALGARY |
| **Province:** | ALBERTA |
| **Postal Code:** | T2P4K9 |
| **Email Address:** | ANNUAL.RETURNS@MCMILLAN.CA |

---

**Director**

---

| | |
|:---|:---|
| **Last Name:** | JOHANNSON |
| **First Name:** | ARNI |
| **Middle Name:** |  |
| **Street/Box Number:** | 600- 1819 BELLEVUE AVENUE |
| **City:** | WEST VANCOUVER |
| **Province:** | BRITISH COLUMBIA |
| **Postal Code:** | V7V1B2 |
| **Country:** |  |

---

---

| | |
|:---|:---|
| **Last Name:** | MEEKISON |
| **First Name:** | JOHN |
| **Middle Name:** |  |
| **Street/Box Number:** | 6379 ARGYLE AVENUE |
| **City:** | WEST VANCOUVER |
| **Province:** | BRITISH COLUMBIA |
| **Postal Code:** | V7W2E5 |
| **Country:** |  |
| **Last Name:** | YUAN |
| **First Name:** | YANGUANG |
| **Middle Name:** |  |
| **Street/Box Number:** | #109, 2770 - 3RD STREET N.E. |
| **City:** | CALGARY |
| **Province:** | ALBERTA |
| **Postal Code:** | T2A2L5 |
| **Country:** |  |
| **Last Name:** | CHEN |
| **First Name:** | WEIXING |
| **Middle Name:** |  |
| **Street/Box Number:** | 3231 TREDGER CLOSE N.W. |
| **City:** | EDMONTON |
| **Province:** | ALBERTA |
| **Postal Code:** | T6R3T6 |
| **Country:** |  |
| **Last Name:** | CHONG |
| **First Name:** | PHILIP |
| **Middle Name:** |  |
| **Street/Box Number:** | 50 MELHAM COURT |
| **City:** | TORONTO |
| **Province:** | ONTARIO |
| **Postal Code: Country:** | M1B2E5 |
| **Country:** |  |
| **Last Name:** | OMBACH |
| **First Name:** | GRZEGORZ |
| **Middle Name:** |  |
| **Street/Box Number:** | ROTKAPPCHENSTR. 88 |
| **City:** | MUNICH |
| **Province:** |  |
| **Postal Code:** | 81739 |
| **Country:** | GERMANY |

---

**Continuance**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name In**<br> **Previous**<br> **Jurisdiction** | **Corporate Access**<br> **Number in Previous**<br> **Jurisdiction** | **Business**<br> **Number** | **Previous**<br> **Canadian**<br> **Jurisdiction** | **Previous**<br> **Foreign**<br> **Jurisdiction** | **Date Created In**<br> **Previous**<br> **Jurisdiction** |
| NANO<br> INNOVATIONS<br> INC. | BC1140815 | 785155318 | BRITISH<br> COLUMBIA |  | 2017/11/09 |

---

**Attachment**

---

| | | |
|:---|:---|:---|
| **Attachment Type** | **Microfilm Bar Code** | **Date Recorded** |
| Letter of Approval | 10000007141574378 | 2022/07/27 |
| Other Rules or Provisions | ELECTRONIC | 2022/07/27 |
| Share Structure | ELECTRONIC | 2022/07/27 |

---

---

| | |
|:---|:---|
| **Registration Authorized By:** | JOANNA DAWSON |
|  | SOLICITOR |

---

The Registrar of Corporations certifies that the information contained in this statement is an accurate reproduction of the data contained in the specified service request in the official public records of Corporate Registry.

![](cm281_ex3-3img03.jpg)

![](cm281_ex3-3img04.jpg)

![](cm281_ex3-3img05.jpg)

## Exhibit 3.4

**Exhibit 3.4**

**BY-LAW NO. 1<br>a by-law relating generally to the conduct<br> of the business and affairs of<br>Adven Inc.<br>** 

<br> **a corporation SUBJECT TO THE<br> *BUSINESS CORPORATIONS ACT* (aLBERTA)**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| Section 1 – interpretation | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Definitions | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Other Definitions | 2 |
| Section 2 – GENERAL BUSINESS | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Corporate Seal | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Financial Year | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Execution of Instruments | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 Banking Arrangements | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 Voting Rights in Other Bodies Corporate | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 Insider Trading Reports and Other Filings | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 Divisions | 3 |
| Section 3 – borrowing and security | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Borrowing Power | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Delegation | 4 |
| Section 4 – directors | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Duties of Directors | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Number of Directors | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Qualification | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Election and Term | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 Removal of Directors | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 Ceasing to Hold Office | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 Filling Vacancies | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.8 Action by the Board | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.9 Conflict of Interest | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.10 Remuneration and Expenses | 7 |
| Section 5 – BOARD MEETINGS | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Meeting by Telephone or Electronic Facilities | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Calling of Meetings | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Notice of Meeting | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 Waiver of Notice | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 First Meeting of New Board | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 Adjourned Meeting | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.7 Regular Meetings | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.8 Chairperson and Secretary | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.9 Quorum | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.10 Votes to Govern | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.11 Casting Vote | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.12 Resolution in Lieu of Meeting | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.13 One Director Meeting | 8 |
| Section 6 – committees | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Committees of the Board | 9 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 Transaction of Business | 9 |

---

(i) ---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 Advisory Bodies | 9.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 Procedure | 9.0 |
| Section 7 – officers | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Appointment | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Chairperson of the Board | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 Managing Director | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 President | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 Secretary | 10.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 Treasurer | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 Powers and Duties of Officers | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 Term of Office | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 Agents and Attorneys | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.10 Conflict of Interest | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.11 Fidelity Bonds | 11.0 |
| Section 8 – protection of directors, officers and others | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Limitation of Liability | 11.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Indemnity | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 Insurance | 12.0 |
| Section 9 – seCURITIEs | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Options or Rights | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Commissions | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 Securities Register | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Registration of Transfers | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 Transfer Agents and Registrars | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 Non-recognition of Trusts | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 Security Certificates | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 Replacement of Security Certificates | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 Joint Holders | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 Deceased Holders | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 Enforcement of Lien | 15.0 |
| Section 10 – dividends and rights | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Dividends | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 Dividend Cheques | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 Non-receipt or Loss of Cheques | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Currency of Dividends | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 Record Date for Dividends and Rights | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 Unclaimed Dividends | 17.0 |
| Section 11 – meetings of shareholders | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Annual Meetings | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 Special Meetings | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 Meeting Held by Electronic Means | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 Place of Meetings | 17.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 Notice of Meeting | 18.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 List of Shareholders Entitled to Notice | 18.0 |

---

(ii) ---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 Record Date for Notice | 18.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 Waiver of Notice | 19.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 Chairperson, Secretary and Scrutineers | 19.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 Persons Entitled to be Present | 19.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 Quorum | 19.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 Right to Vote | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13 Proxyholders and Representatives | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.14 Time for Deposit of Proxies | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.15 Joint Shareholders | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.16 Votes to Govern | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.17 Casting Vote | 20.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.18 Show of Hands | 21.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.19 Ballots | 21.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.20 Adjournment | 21.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.21 Resolution in Lieu of Meeting | 21.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.22 Only One Shareholder | 21.0 |
| Section 12 – notices | 22.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 Method of Giving Notices | 22.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 Notice to Joint Shareholders | 22.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 Computation of Time | 22.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 Undelivered Notices | 22.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.5 Omissions and Errors | 22.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.6 Persons Entitled by Death or Operation of Law | 22.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.7 Waiver of Notice | 23.0 |
| Section 13 – effective date | 23.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 Effective Date | 23.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 Paramountcy | 23.0 |

---

(iii) **BY-LAW NO. 1<br>a by-law relating generally to the conduct<br> of the business and affairs of<br> Adven Inc.<br> a corporation subject to THE<br> *BUsiness corporations act* (aLBERTA)**

**Section 1 – interpretation**

1.1 Definitions

In the By-laws of the Corporation, unless the context otherwise requires:

(1) **"Act"** means the *Business Corporations Act* (Alberta), or any statute that may be substituted for it, as from time to time amended.

(2) **"appoint"** includes "elect" and *vice versa*.

(3) **"Articles"** means the original or restated articles of incorporation, articles of amendment, articles of amalgamation, articles of arrangement, articles of continuance, articles of dissolution, articles of reorganization and articles of revival of the Corporation and includes any amendments thereto.

(4) **"Board"** means the board of directors of the Corporation.

(5) **"By-laws"** means these by-laws and all other by-laws of the Corporation from time to time in force and effect.

(6) **"Cheque"** includes a draft.

(7) **"Corporation"** means Adven Inc.

(8) **"Defaulting Shareholder"** means a shareholder of the Corporation who defaults in the payment of any Shareholder Debt when the same becomes due and payable.

(9) **"Director"** means a member of the Board.

(10) **"entity"** means a body corporate, a partnership, a trust, a joint venture or an unincorporated association or organization.

(11) **"Liened Shares"** means the whole or any part of the shares registered in the name of a Defaulting Shareholder except where such class or series of shares is listed and posted for trading on any stock exchange in or outside Canada.

(12) **"meeting of shareholders"** means an annual meeting of shareholders and a special meeting of shareholders.

(13) **"non-business day"** means Saturday, Sunday and any other day that is a holiday as defined in the *Interpretation Act* (Canada) as from time to time amended.

(14) **"recorded address"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of a shareholder, his or her address as recorded in the securities register;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of joint shareholders, the address appearing in the securities register in respect of the
joint holding or the first address so appearing if there is more than one;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the case of an officer, auditor or member of a committee of the Board, his or her latest address as
recorded in the records of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) in the case of a Director, his or her latest address as recorded in the most recent notice filed under
the Act.

(15) **"Shareholder Debt"** means any principal or interest due to the Corporation in respect of any indebtedness owing by the holder of any class or series of shares in the Corporation, including an amount unpaid in respect of a share issued by a body corporate on the date it was continued under the Act.

(16) **"special meeting of shareholders"** includes a meeting of any class or classes of shareholders and a special meeting of all shareholders entitled to vote at an annual meeting of shareholders.

(17) **"Unanimous Shareholder Agreement"** means an otherwise lawful written agreement among all of the shareholders of the Corporation or among all such shareholders and one or more persons who are not shareholders, or a written declaration of the beneficial owner of all of the issued shares of the Corporation, that restricts in whole or in part the powers of the Board to manage or supervise the management of the business and affairs of the Corporation, as from time to time amended.

1.2 Other Definitions

Other than as specified above, words and expressions defined in the Act have the same meanings when used herein. Words importing the singular number include the plural and *vice versa*; words importing gender include the masculine, feminine and neuter genders; and "including" means including, without limitation.

**Section 2 – GENERAL BUSINESS**

2.1 Corporate Seal

The Corporation may but need not adopt a corporate seal and, if one is adopted, it may be changed from time to time by resolution of the Board.

2.2 Financial Year

The Board may, by resolution, fix the financial year end of the Corporation and may from time to time, by resolution, change the financial year end of the Corporation.

2.3 Execution of Instruments

(1) Deeds, transfers, assignments, contracts, obligations, certificates and other instruments may be signed on behalf of the Corporation by any Director or officer of the Corporation.

(2) In addition, the Board may from time to time authorize any other person or persons to sign any particular instruments.

(3) Any officer or Director may sign certificates and similar instruments (other than share certificates) on the Corporation's behalf with respect to any factual matters relating to the Corporation's business and affairs, including certificates verifying copies of the Articles, By-laws, resolutions and minutes of meetings of the Corporation. Any signing officer may affix the corporate seal to any instrument requiring the same.

(4) The signature of any person authorized to sign on behalf of the Corporation may, if specifically authorized by resolution of the Board, be written, printed, stamped, engraved, lithographed or otherwise mechanically reproduced or may be an electronic signature. Anything so signed shall be as valid as if it had been signed manually, even if that person has ceased to hold office when anything so signed is issued or delivered, until revoked by resolution of the Board.

2.4 Banking Arrangements

The banking business of the Corporation, including the borrowing of money and the giving of security therefor, shall be transacted with such banks, trust companies, credit unions or other bodies corporate or organizations as may from time to time be designated by or under the authority of the Board. Such banking business or any part thereof shall be transacted under such agreements, instructions and delegations of powers as the Board may from time to time prescribe.

2.5 Voting Rights in Other Bodies Corporate

The signing officers of the Corporation under Section 2.3 may execute and deliver proxies and arrange for the issuance of voting certificates or other evidence of the right to exercise the voting rights attaching to any securities held by the Corporation. Such instruments shall be in favour of such persons as may be determined by the officers executing or arranging for the same. In addition, the Board may from time to time direct the manner in which and the persons by whom any particular voting rights or class of voting rights may or shall be exercised.

2.6 Insider Trading Reports and Other Filings

Any one Director or officer of the Corporation may execute and file on behalf of the Corporation insider trading reports and other filings of any nature whatsoever required under applicable corporate or securities law.

2.7 Divisions

The Board may cause the business and operations of the Corporation or any part thereof to be divided into one or more divisions upon such basis, including types of business or operations, geographical territories, product lines or goods or services, as may be considered appropriate in each case. In connection with any such division, the Board or, subject to any direction by the Board, the chief executive officer may authorize from time to time, upon such basis as may be considered appropriate in each case:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)  ***Subdivision and Consolidation*** - the further division of the business and operations of any
such division into sub-units and the consolidation of the business and operations of any such divisions and sub-units;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)  ***Name*** - the designation of any such division or sub-unit by, and the carrying on of the business
and operations of any such division or sub-unit under, a name other than the name of the Corporation, provided that the Corporation shall
set out both its corporate name and the name of its division on sub-unit in legible characters in all contracts, invoices, negotiable
instruments and orders for goods or services issued or made by or on behalf of the Corporation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)  ***Officers*** - the appointment of officers for any such division or sub-unit, the determination
of their powers and duties, and the removal of any of such officers so appointed, provided that any such officers shall not, as such,
be officers of the Corporation.

**Section 3 – borrowing and security**

3.1 Borrowing Power

(1) Without limiting the borrowing powers of the Corporation as set forth in the Act, but subject to the Articles and any Unanimous Shareholder Agreement, the Board may from time to time on behalf of the Corporation, without authorization of the shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) borrow money upon the credit of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issue, reissue, sell or pledge bonds, debentures, notes or other debt obligations or guarantees of the
Corporation, whether secured or unsecured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) give, directly or indirectly, financial assistance to any person by means of a loan or a guarantee on
behalf of the Corporation to secure performance of any present or future indebtedness, liability or obligation of any person, or otherwise;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) mortgage, hypothecate, pledge or otherwise create a security interest in all or any currently owned or
subsequently acquired real or personal, movable or immovable, property of the Corporation, including accounts, rights, powers, franchises
and undertakings to secure any such bonds, debentures, notes or other debt obligations or guarantees or any other present or future indebtedness,
liability or obligation of the Corporation.

(2) Nothing in Section 3.1(1) limits or restricts the borrowing of money by the Corporation on bills of exchange or promissory notes made, drawn, accepted or endorsed by or on behalf of the Corporation.

3.2 Delegation

Subject to the Act, the Articles and any Unanimous Shareholder Agreement, the Board may from time to time delegate to a committee of the Board, a Director or an officer of the Corporation or any other person as may be designated by the Board all or any of the powers conferred on the Board by Section 3.1 or by the Act to such extent and in such manner as the Board may determine at the time of such delegation.

**Section 4 – directors**

4.1 Duties of Directors

Subject to any Unanimous Shareholder Agreement, the Board shall manage or supervise the management of the business and affairs of the Corporation.

4.2 Number of Directors

If the Articles provide for a minimum number and a maximum number of Directors, unless otherwise provided in the Articles, the number of Directors of the Corporation shall be determined from time-to-time by resolution of the Shareholders.

4.3 Qualification

(1) The following persons are disqualified from being a Director of the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) anyone who is less than 18 years of age;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) anyone who

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is a represented adult as defined in the *Adult Guardianship and Trusteeship Act* or is the subject
of a certificate of incapacity that is in effect under the *Public Trustee Act,* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is a formal patient as defined in the *Mental Health Act*,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) is the subject of an order under *The Mentally Incapacitated Persons Act*, RSA 1970 c232, appointing
a committee of the person or estate, or both, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) has been found to be a person of unsound mind by a court elsewhere than in Alberta;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a person who is not an individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a person who has the status of bankrupt.

(2) A Director need not be a shareholder.

4.4 Election and Term

(1) Directors shall be elected by the shareholders at the first meeting of shareholders after the effective date of these By-laws and at each succeeding annual meeting at which an election of Directors is required, and shall hold office until the next annual meeting of shareholders or, if elected for an expressly stated term, for a term expiring not later than the close of the third annual meeting of shareholders following the election.

(2) The election of Directors shall be by resolution, or if demanded by a shareholder or a proxyholder, by ballot.

(3) If an election of Directors is not held at the proper time, the incumbent Directors shall continue in office until their successors are elected.

(4) An individual who is elected or appointed to hold office as a Director is not a Director and is deemed not to have been elected or appointed to hold office as a Director unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he or she was present at the meeting when the election or appointment took place and he or she did not
refuse to hold office as a Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he or she was not present at the meeting when the election or appointment took place, and:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) he or she consented to hold office as a Director in writing before the election or appointment or within
10 days after it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) he or she has acted as a Director pursuant to the election or appointment.

4.5 Removal of Directors

4.6 Ceasing to Hold Office

A Director ceases to hold office when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) he or she dies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) he or she is removed from office by the shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) he or she ceases to be qualified for election as a Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) his or her written resignation is received by the Corporation or, if a time is specified in such resignation,
at the time so specified, whichever is later.

4.7 Filling Vacancies

Subject to the Act and any Unanimous Shareholder Agreement, a quorum of the Board may fill a vacancy in the Board, except for a vacancy resulting from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an increase in the number or minimum number of Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a failure of the shareholders to elect the number or minimum number of Directors provided for in the Articles;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) where the Articles of the Corporation so provide, the Directors may appoint one or more Directors, who
shall hold office for a term expiring not later than the close of the next annual meeting of shareholders, but the total number of Directors
so appointed may not exceed one-third the number of Directors elected at the last annual meeting of shareholders.

4.8 Action by the Board

(1) Subject to any Unanimous Shareholder Agreement, the Board shall exercise its powers by or pursuant to a By-law or resolution either by the signatures of the all the Directors then in office, if constituting a quorum, or passed at a Board meeting at which a quorum is present.

(2) Where there is a vacancy in the Board, the remaining directors may exercise all the powers of the Board so long as a quorum remains in office.

4.9 Conflict of Interest

A Director who is a party to, or who is a director or officer of or has a material interest in any person who is a party to, a material contract or transaction or proposed material contract or transaction with the Corporation shall disclose in writing to the Corporation, or request to have entered in the minutes of the Board meeting, the nature and extent of his or her interest at the time and in the manner provided by the Act. Such a Director shall not vote on any resolution to approve the same except as provided by the Act.

4.10 Remuneration and Expenses

Subject to any Unanimous Shareholder Agreement, the Directors shall be paid such remuneration for their services as the Board may from time to time determine. The Directors shall also be entitled to be reimbursed for travelling and other expenses properly incurred by them in attending meetings of the Board or any committee thereof. Nothing herein contained shall preclude any Director from serving the Corporation in any other capacity and receiving remuneration therefor.

**Section 5 – BOARD MEETINGS**

5.1 Meeting by Telephone or Electronic Facilities

If all the Directors of the Corporation consent thereto generally or in respect of a particular meeting, a Director may participate in a meeting of the Board or of a committee of the Board by means of such telephonic, electronic or other communication facility that permits all participants to communicate adequately with each other during the meeting, and a Director participating in such a meeting by such means is deemed to be present at the meeting. Any such consent shall be effective whether given before or after the meeting to which it relates and may be given with respect to all meetings of the Board and of committees of the Board.

5.2 Calling of Meetings

Board meetings shall be held from time to time at such time and at such place as the Board, the chairperson of the Board, the managing director, the president or any two Directors may determine.

5.3 Notice of Meeting

(1) Notice of the time and place of each Board meeting shall be sent in the manner provided in Section 12 to each Director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not less than seven days before the time when the meeting is to be held if the notice is mailed; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not less than 24 hours before the time the meeting is to be held if the notice is given personally, is
delivered or sent by any means of transmitted or recorded communication.

(2) A notice of a Board meeting need not specify the purpose of or the business to be transacted at the meeting except where the Act requires such purpose or business or the general nature thereof to be specified.

5.4 Waiver of Notice

A Director may in any manner or at any time waive notice of or otherwise consent to a Board meeting. Attendance of a Director at a Board meeting shall constitute a waiver of notice of that meeting except where a Director attends for the express purpose of objecting to the transaction of any business on the grounds that the meeting has not been properly called.

5.5 First Meeting of New Board

As long as a quorum of Directors is present, each newly elected Board may without notice hold its first meeting immediately following the meeting of shareholders at which such Board is elected.

5.6 Adjourned Meeting

Notice of an adjourned Board meeting is not required if the time and place of the adjourned meeting is announced at the original meeting.

5.7 Regular Meetings

The Board may appoint a day or days in any month or months for regular Board meetings at a place and hour to be named. A copy of any resolution of the Board fixing the place and time of such regular meetings shall be sent to each Director forthwith after being passed, but no other notice shall be required for any such regular meeting except where the Act requires the purpose thereof or the business to be transacted thereat to be specified.

5.8 Chairperson and Secretary

The chairperson of any Board meeting shall be the first mentioned of such of the following officers as have been appointed and who is a Director and is present at the meeting: chairperson of the Board; managing director; or president. If no such officer is present, the Directors present shall choose one of their number to be chairperson. The secretary of the Corporation shall act as secretary of any Board meeting, and, if the secretary of the Corporation is absent, the chairperson of the meeting shall appoint a person who need not be a Director to act as secretary of the meeting.

5.9 Quorum

Subject to any Unanimous Shareholder Agreement, a majority of the Directors constitutes a quorum at a Board meeting.

5.10 Votes to Govern

(1) Subject to any Unanimous Shareholder Agreement, at all Board meetings, every question shall be decided by a majority of the votes cast on the question.

(2) Unless a ballot is demanded, an entry in the minutes of a meeting to the effect that the chairperson of the meeting declared a resolution to be carried or defeated is, in the absence of evidence to the contrary, proof of the fact without proof of the number or proportion of the votes recorded in favour of or against the resolution.

5.11 Casting Vote

Subject to any Unanimous Shareholder Agreement, in case of an equality of votes at a Board meeting, the chairperson of the meeting shall not be entitled to a second or casting vote.

5.12 Resolution in Lieu of Meeting

A resolution in writing, signed by all the Directors entitled to vote on that resolution at a Board meeting, is as valid as if it had been passed at a Board meeting.

5.13 One Director Meeting

Where the Board consists of only one Director, that Director may constitute a meeting.

**Section 6 – committees**

6.1 Committees of the Board

The Board may appoint from their number one or more committees of the Board, however designated, and delegate to any such committee any of the powers of the Board, except powers to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) submit to the shareholders any question or matter requiring the approval of the shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fill a vacancy among the Directors or in the office of auditor or appoint additional Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) issue securities except as authorized by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) issue shares of a series except as authorized by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) declare dividends;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) purchase, redeem or otherwise acquire shares issued by the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) pay a commission for the sale of shares of the Corporation except as authorized by the Directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) approve a management proxy circular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) approve a take-over bid circular or directors' circular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) approve any financial statements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) adopt, amend or repeal By-laws.

6.2 Transaction of Business

Subject to the provisions of Section 6.1, the powers of a committee of the Board may be exercised at a meeting at which a quorum is present or by resolution in writing signed by all members of such committee who would have been entitled to vote on that resolution at a meeting of the committee. Meetings of such committee may be held at any place in or outside Canada.

6.3 Advisory Bodies

The Board may from time to time appoint such advisory bodies as it may deem advisable.

6.4 Procedure

Unless otherwise determined by the Board, each committee and advisory body shall have the power to fix its quorum at not less than a majority of its members, to elect its chairperson and to regulate its procedure. To the extent that the Board or the committee does not establish rules to regulate the procedure of the committee, the provisions of these By-laws applicable to Board meetings shall apply with all necessary modifications.

**Section 7 – officers**

7.1 Appointment

Subject to any Unanimous Shareholder Agreement, the Board may from time to time designate the offices of the Corporation and from time to time appoint a chairperson of the Board, managing director, president, one or more vice-presidents (to which title may be added words indicating seniority or function), a secretary, a treasurer and such other officers as the Board may determine, including one or more assistants to any of the officers so appointed. One person may hold more than one office. The Board may specify the duties of and, in accordance with these By-laws and subject to the Act, delegate to such officers powers to manage the business and affairs of the Corporation. Except for the chairperson of the Board and the managing director, an officer may but need not be a Director.

7.2 Chairperson of the Board

The Board may from time to time appoint a chairperson of the Board who shall be a Director. If appointed, the Board may assign to the chairperson of the Board any of the powers and duties that are by any provisions of these By-laws assigned to the managing director or to the president. The chairperson shall have such other powers and duties as the Board may specify.

7.3 Managing Director

The Board may from time to time appoint a managing director who shall be a Director. If appointed, the managing director shall be the chief executive officer and, subject to the authority of the Board, shall have general supervision of the business and affairs of the Corporation. The managing director shall have such other powers and duties as the Board may specify. During the absence or disability of the president, or if no president has been appointed, the managing director shall also have the powers and duties of that office.

7.4 President

If appointed, the president shall be the chief operating officer and, subject to the authority of the Board, shall have general supervision of the business of the Corporation. The president shall have such other powers and duties as the Board may specify. During the absence or disability of the managing director, or if no managing director has been appointed, the president shall also have the powers and duties of that office.

7.5 Secretary

Unless otherwise determined by the Board, the secretary shall attend and be the secretary of all meetings of the Board, shareholders and committees of the Board that he or she attends. The secretary shall enter or cause to be entered in records kept for that purpose minutes of all proceedings at meetings of the Board, shareholders and committees of the Board, whether or not he or she attends such meetings. The secretary shall give or cause to be given, as and when instructed, all notices to shareholders, Directors, officers, auditors and members of committees of the Board. The secretary shall be the custodian of the seal of the Corporation and of all books, records and instruments belonging to the Corporation, except when some other officer or agent has been appointed for that purpose. The secretary shall have such other powers and duties as otherwise may be specified.

7.6 Treasurer

The treasurer shall keep proper accounting records in compliance with the Act and shall be responsible for the deposit of money, the safekeeping of securities and the disbursement of the funds of the Corporation. The treasurer shall render to the Board whenever required an account of all his or her transactions as treasurer and of the financial position of the Corporation. The treasurer shall have such other powers and duties as otherwise may be specified.

7.7 Powers and Duties of Officers

The powers and duties of all officers shall be such as the terms of their engagement call for or as the Board or (except for those whose powers and duties are to be specified only by the Board) the chief executive officer may specify. The Board and (except as aforesaid) the chief executive officer may, from time to time and subject to the provisions of the Act and any Unanimous Shareholder Agreement, vary, add to or limit the powers and duties of any officer. Any of the powers and duties of an officer to whom an assistant has been appointed may be exercised and performed by such assistant, unless the Board or the chief executive officer otherwise directs.

7.8 Term of Office

Subject to any Unanimous Shareholder Agreement, the Board, in its discretion, may remove any officer of the Corporation. Otherwise, each officer appointed by the Board shall hold office until his or her successor is appointed or until his or her earlier resignation.

7.9 Agents and Attorneys

The Board shall have power from time to time to appoint agents or attorneys for the Corporation in or outside Canada with such powers (including the power to sub-delegate) of management, administration or otherwise as may be thought fit.

7.10 Conflict of Interest

An officer shall disclose his or her interest in any material contract or transaction or proposed material contract or transaction with the Corporation in accordance with Section 4.9.

7.11 Fidelity Bonds

The Board may require such officers, employees and agents of the Corporation as the Board deems advisable to furnish bonds for the faithful discharge of their duties, in such form and with such surety as the Board may from time to time prescribe.

**Section 8 – protection of directors, officers and others**

8.1 Limitation of Liability

Every Director and officer of the Corporation in exercising his or her powers and discharging his or her duties shall act honestly and in good faith with a view to the best interests of the Corporation and exercise the care, diligence and skill that a reasonably prudent person would exercise in comparable circumstances. Subject to the foregoing, no Director or officer shall be liable for the acts, omissions, failures, neglects or defaults of any other Director, officer or employee, or for joining in any act for conformity, or for any loss, damage or expense suffered or incurred by the Corporation through the insufficiency or deficiency of title to any property acquired by the Corporation or for or on behalf of the Corporation, or for the insufficiency or deficiency of any security in or upon which any of the moneys of the Corporation shall be invested, or for any loss or damage arising from the bankruptcy, insolvency or tortious act of any person with whom any of the moneys, securities or effects of the Corporation shall be deposited, or for any loss occasioned by any error of judgment or oversight on his or her part, or for any other loss, damage or misfortune which shall happen in the execution of the duties of his or her office or in relation thereto. Nothing herein shall relieve any Director or officer from the duty to act in accordance with the Act and the regulations thereunder or from liability for any breach thereof.

8.2 Indemnity

(1) The Corporation shall indemnify a Director or officer of the Corporation, a former director or officer of the Corporation or another individual who acts or acted at the Corporation's request as a director or officer (or an individual acting in a similar capacity) of another entity, against all costs, charges and expenses, including an amount paid to settle an action or satisfy a judgment, reasonably incurred by the individual in respect of any civil, criminal, administrative, investigative or other proceeding in which the individual is involved because of that association with the Corporation or other entity.

(2) The Corporation shall advance monies to a Director, officer or other individual for the costs, charges and expenses of a proceeding referred to in Section 8.2(1). The individual shall repay the monies if he or she does not fulfil the conditions of Section 8.2(3).

(3) The Corporation shall not indemnify an individual under Section 8.2(1) unless he or she:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) acted honestly and in good faith with a view to the best interests of the Corporation or, as the case
may be, to the best interests of the other entity for which he or she acted as a Director or officer or in a similar capacity at the Corporation's
request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of a criminal or administrative action or proceeding that is enforced by a monetary penalty,
he or she had reasonable grounds for believing that his or her conduct was lawful.

(4) The Corporation shall also indemnify the individual referred to in Section 8.2(1) in such other circumstances as the Act or law permits or requires. Nothing in these By-laws shall limit the right of any person entitled to indemnity to claim indemnity apart from the provisions of these By-laws.

8.3 Insurance

Subject to the Act, the Corporation may purchase and maintain such insurance for the benefit of any individual referred to in Section 8.2(1) as the Board may from time to time determine.

**Section 9 – seCURITIEs**

9.1 Options or Rights

Subject to the Act, the Articles and any Unanimous Shareholder Agreement, the Board may from time to time issue or grant options to purchase the whole or any part of the authorized and unissued shares of the Corporation at such times and to such persons and for such consideration as the Board shall determine, except that no share shall be issued until it is fully paid as provided by the Act.

9.2 Commissions

The Board may from time to time authorize the Corporation to pay a reasonable commission to any person in consideration of his or her purchasing or agreeing to purchase shares of the Corporation, whether from the Corporation or from any other person, or procuring or agreeing to procure purchasers for any such shares.

9.3 Securities Register

The Corporation shall prepare and maintain, at its registered office or, subject to the Act, at any other place designated by the Board, a securities register in which it records the securities issued by it in registered form, showing with respect to each class or series of securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the names, alphabetically arranged, of each person who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is or has been registered as a shareholder of the Corporation, the latest known address, including the
street and number, if any, of every such person while a holder, and the number and class of shares registered in the name of such holder;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is or has been registered as a holder of debt obligations of the Corporation, the latest known address,
including the street and number, if any, of every such person while a holder, and the class or series and principal amount of the debt
obligations registered in the name of such holder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the date and particulars of the issue and transfer of each security.

9.4 Registration of Transfers

Subject to the Act, no transfer of a share shall be registered in a securities register except on presentation of the certificate representing the share with an endorsement which complies with the Act made on or delivered with it duly executed by an appropriate person as provided by the Act, together with such reasonable assurance that the endorsement is genuine and effective as the Board may from time to time prescribe, on payment of all applicable taxes and any reasonable fees prescribed by the Board, on compliance with the restrictions on issue, transfer or ownership authorized by the Articles or any Unanimous Shareholder Agreement and on satisfaction of any lien referred to in Section 9.11(1).

9.5 Transfer Agents and Registrars

The Board may from time to time, in respect of each class of securities issued by it, appoint one or more trustees, transfer or other agents to keep the securities register and a registrar, trustee or agent to maintain a central securities register of issued security certificates and may appoint one or more persons or agents to keep branch registers, and, subject to the Act, one person may be appointed to keep the securities register and the records of issued security certificates. Such a person may be designated as transfer agent or registrar according to its functions, and one person may be designated both registrar and transfer agent. The Board may at any time terminate such appointment.

9.6 Non-recognition of Trusts

Subject to the Act, the Corporation may treat the registered holder of any security as the person exclusively entitled to vote, to receive notices, to receive any dividend or other payments in respect of the security, and otherwise to exercise all the rights and powers of an owner of the security.

9.7 Security Certificates

(1) Every holder of one or more securities of the Corporation shall be entitled, at his or her option, to a security certificate or to a non-transferable written certificate of acknowledgement of his or her right to obtain a security certificate, stating the number and class or series of shares held by him or her as shown in the securities register. The certificates shall be in such form as the Board may from time to time approve and need not be under the corporate seal. Unless otherwise ordered by the Board, any such certificate shall be signed by at least one of the following persons, or the signature shall be printed or otherwise mechanically reproduced on the certificate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a Director or officer of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a registrar, transfer agent or branch transfer agent of the Corporation, or an individual on their behalf;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a trustee who certifies it in accordance with a trust indenture.

(2) Unless the Board otherwise determines, certificates in respect of which a transfer agent or registrar has been appointed shall not be valid unless countersigned by or on behalf of such transfer agent or registrar.

(3) Signatures of signing officers may be printed or mechanically reproduced in facsimile upon security certificates and every such facsimile shall for all purposes be deemed to be the signature of the officer whose signature it reproduces and shall be binding upon the Corporation. A security certificate executed as aforesaid shall be valid notwithstanding that the person has ceased to be a Director or an officer of the Corporation.

9.8 Replacement of Security Certificates

The Board may in its discretion (or any officer or agent designated by the Board may in his or her discretion) direct the issue of a new share or other such certificate in lieu of and on cancellation of a certificate that has been mutilated or in substitution for a certificate claimed to have been lost, apparently destroyed or wrongfully taken, on payment of such reasonable fee and on such terms as to indemnity, reimbursement of expenses and evidence of loss and of title as the Board may from time to time prescribe, whether generally or in any particular case.

9.9 Joint Holders

If two or more persons are registered as joint holders of any security, the Corporation shall not be bound to issue more than one certificate in respect of that security, and delivery of such certificate to one of those persons shall be sufficient delivery to all of them. Any one of those persons may give effectual receipts for the certificate issued in respect of it or for any dividend, interest, bonus, return of capital or other money payable or warrant issuable in respect of that security.

9.10 Deceased Holders

In the event of the death of a holder, or of one of the joint holders of any security, the Corporation shall not be required to make any entry in the securities register in respect of the death or to make any dividend, interest or other payments in respect of the security except on production of all such documents as may be required by law.

9.11 Enforcement of Lien

(1) If the Articles provide that the Corporation shall have a lien on shares registered in the name of a Defaulting Shareholder for any Shareholder Debt and any Defaulting Shareholder defaults in the payment due in respect of any Shareholder Debt when the same becomes due and payable and continues in default for a period of 15 days after the Corporation has given notice in writing of such default to the Defaulting Shareholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Corporation may sell all or any part of the Liened Shares at a *bona fide* public or private
sale or auction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the terms and manner of the auction or sale shall be in the sole discretion of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Corporation may accept any offer that it in its absolute discretion considers advisable upon such
terms, whether for cash or credit or partly cash and partly credit, as it in its discretion considers advisable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) notice of any public or private sale or auction shall be given to the Defaulting Shareholder at least
15 days prior to the date on which such sale is held;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the proceeds of such sale shall be used and applied in descending order as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) first, to the cost and expense of such sale incurred by the Corporation, including legal fees, disbursements
and charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) second, to reimburse the Corporation for out-of-pocket expenses incurred in connection with the sale;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) third, for the payment in full of the Shareholder Debt and all other sums due to the Corporation by the
Defaulting Shareholder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the balance, if any, to the Defaulting Shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if the proceeds of the sale are insufficient to pay the Shareholder Debt, the Defaulting Shareholder shall
remain liable for any such deficiency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Corporation may apply any dividends or other distributions paid or payable on or in respect of the
Liened Shares in repayment of the Shareholder Debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) where the Liened Shares are redeemable pursuant to the Articles or may be repurchased at a price determined
pursuant to the terms of any Unanimous Shareholder Agreement, the Corporation may redeem or repurchase all or any part of the Liened Shares
and apply the redemption or repurchase price to the Shareholder Debt; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Corporation may refuse to register a transfer of all or part of the Liened Shares until the Shareholder
Debt is paid.

(2) In exercising one or more of the rights granted in Section 9.11(1), the Corporation shall not thereby prejudice or surrender any other rights of enforcement of its lien which may by law be available to it, or any other remedy available to the Corporation for collection of the Shareholder Debt, and the Defaulting Shareholder shall remain liable for any deficiency remaining.

**Section 10 – dividends and rights**

10.1 Dividends

Subject to the Act and any Unanimous Shareholder Agreement, the Board may from time to time declare dividends payable to the shareholders according to their respective rights and interests in the Corporation. Dividends may be paid in money or property or by the issue of fully paid shares of the Corporation or options or rights to acquire fully paid shares of the Corporation.

10.2 Dividend Cheques

A dividend payable in money (less any tax or other amounts required to be deducted or withheld by the Corporation) shall be paid to the order of each registered holder of the shares of the class or series in respect of which it has been declared by Cheque in lawful money of Canada at par at any branch in Canada of the Corporation's bankers for the time being or, in respect of any particular holder, by any other means agreed upon between the Corporation and such holder. The mailing of such Cheque by ordinary unregistered first class pre-paid mail addressed to a holder at his or her address as it appears in the securities register of the Corporation or, in the event of the address of any such holder not so appearing, then at the last address of such holder known to the Corporation or, in the case of joint holders, to the address of that one of the joint holders whose name stands first in such register, or the payment by such other means shall be deemed to be payment of the dividends represented thereby and payable on such date to the extent of the amount of such payment unless the Cheque is not paid upon presentation or payment by such other means is not received.

10.3 Non-receipt or Loss of Cheques

In the event of non-receipt or loss of any dividend Cheque by the person to whom it is sent, the Corporation shall issue a replacement Cheque for a like amount on such terms as to indemnity, reimbursement of expenses and evidence of non-receipt and of title as the Board may from time to time prescribe, whether generally or in any particular case.

10.4 Currency of Dividends

Dividends or other distributions payable in cash may be paid to some shareholders in Canadian currency and to other shareholders in equivalent amounts of a currency or currencies other than Canadian currency. The Board may declare dividends or other distributions in any currency or in alternative currencies and make such provisions as it deems advisable for the payment of such dividends or other distributions.

10.5 Record Date for Dividends and Rights

The Board may fix in advance a date, preceding by not less than 21 days and more than 50 days the date for the payment of any dividend or the date for the issue of any warrant or other evidence of the right to subscribe for securities of the Corporation, as a record date for the determination of the persons entitled to receive payment of such dividend or to exercise the right to subscribe for such securities, and notice of any such record date shall be given not less than seven days before the record date in the manner provided by the Act. If no record date is so fixed, the record date for the determination of the persons entitled to receive payment of any dividend or to exercise the right to subscribe for securities of the Corporation shall be at the close of business on the day on which the resolution relating to the dividend or right to subscribe is passed by the Board.

10.6 Unclaimed Dividends

Any dividend unclaimed after a period of two years from the date on which it has been declared to be payable shall be forfeited and shall revert to the Corporation.

**Section 11 – meetings of shareholders**

11.1 Annual Meetings

The annual meeting of shareholders shall be held at such time in each year and, subject to Section 11.4, at such place as the Board may from time to time determine, for the purpose of considering the minutes of an earlier meeting, considering the financial statements and reports required by the Act to be placed before the annual meeting, electing Directors, appointing or waiving the appointment of an auditor and for the transaction of such other business as may properly be brought before the meeting.

11.2 Special Meetings

The Board shall have power to call a special meeting of shareholders at any time.

11.3 Meeting Held by Electronic Means

(1) Any person entitled to attend a meeting of shareholders may vote and otherwise participate in the meeting by means of a telephonic, electronic or other communication facility made available by the Corporation that permits all participants to communicate adequately with each other during the meeting. A person participating in a meeting of shareholders by such means is deemed to be present at the meeting.

(2) Directors who call (but not shareholders who requisition) a meeting of shareholders may determine that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the meeting shall be held, in accordance with the regulations, entirely by means of a telephonic, electronic
or other communication facility that permits all participants to communicate adequately with each other during the meeting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any vote shall be held, in accordance with the regulations, entirely by means of a telephonic, electronic
or other communication facility that the corporation has made available for that purpose.

(3) Any vote at a meeting of shareholders may be carried out by means of a telephonic, electronic or other communication facility, if the facility:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) enables the votes to be gathered in a manner that permits their subsequent verification; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permits the tallied votes to be presented to the Corporation without it being possible for the Corporation
to identify how each shareholder or group of shareholders voted.

11.4 Place of Meetings

(1) Meetings of shareholders shall be held at such place in Alberta as the Directors determine or, in the absence of such a determination, at the place where the registered office of the Corporation is located. If all the shareholders entitled to vote at that meeting so agree or the Articles specify a place outside Alberta where a meeting of shareholders may be held, a meeting of shareholders of the Corporation may be held outside Alberta. A meeting held under Section 11.3 shall be deemed to be held at the place where the registered office of the Corporation is located.

(2) A shareholder who attends a meeting of shareholders held outside Alberta is deemed to have agreed to it being held outside Alberta except when the shareholder attends the meeting for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully held.

11.5 Notice of Meeting

Notice of the time and place of each meeting of shareholders shall be given in the manner provided in Section 12, not less than 21 days and not more than 50 days before the date of the meeting to each Director, to any auditor and to each shareholder who at the close of business on the record date for notice is entered in the securities register as the holder of one or more shares carrying the right to receive notice of or vote at the meeting. Notice of a meeting of shareholders called for any purpose other than consideration of the minutes of an earlier meeting, financial statements and auditor's report, election of Directors and reappointment of the incumbent auditor, shall state or be accompanied by a statement of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the nature of the business in sufficient detail to permit the shareholders to form a reasoned judgment
on it; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the text of any special resolution to be submitted to the meeting.

11.6 List of Shareholders Entitled to Notice

For every meeting of shareholders, the Corporation shall prepare a list of shareholders entitled to receive notice of the meeting, arranged in alphabetical order and showing the number of shares held by each shareholder entitled to vote at the meeting. If a record date for the meeting is fixed pursuant to Section 11.7, the shareholders listed shall be those registered not later than 10 days after that date. If no record date is fixed, the shareholders listed shall be those registered at the close of business on the last business day preceding the day on which notice of the meeting is given or, where no such notice is given, on the day on which the meeting is held. The list shall be available for examination by any shareholder during usual business hours at the registered office of the Corporation or at the place where the central securities register is maintained and at the meeting for which the list was prepared. Where a separate list of shareholders has not been prepared, the names of persons appearing in the securities register at the requisite time as the holder of one or more shares carrying the right to vote at such a meeting shall be deemed to be a list of shareholders.

11.7 Record Date for Notice

The Board may fix in advance a date, preceding the date of any meeting of shareholders by not more than 50 days and not less than 21 days, as a record date for the determination of the shareholders entitled to notice of the meeting, and notice of any such record date shall be given not less than 7 days before the record date, by advertisement in a newspaper published or distributed in the place where the Corporation has its registered office and in each place in Canada where it has a transfer agent or where a transfer of the Corporation's shares may be recorded, and, where applicable, by written notice to each stock exchange in Canada on which the Corporation's shares are listed for trading unless notice of the record date is waived in writing by every holder of a share of the class or series affected whose name is set out in the securities register of the Corporation at the close of business on the day the Directors fix the record date. If no such record date is so fixed, the record date for the determination of the shareholders entitled to receive notice of the meeting shall be at the close of business on the last business day preceding the day on which the notice is given or, if no notice is given, shall be the day on which the meeting is held.

11.8 Waiver of Notice

(1) A meeting of shareholders may be held without notice at any time and place permitted by the Act if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all the shareholders entitled to vote at the meeting are present in person or duly represented or if those
not present or represented waive notice of or otherwise consent to the meeting being held; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the auditor and the Directors are present or waive notice of or otherwise consent to the meeting being
held,

so long as the shareholders, auditor or Directors present are not attending for the express purpose of objecting to the transaction of any business on the grounds that the meeting is not lawfully called.

(2) At a meeting held under Section 11.8(1), any business may be transacted which the Corporation may transact at a meeting of shareholders.

11.9 Chairperson, Secretary and Scrutineers

The chairperson of any meeting of shareholders shall be the first mentioned of such of the following officers as have been appointed and who is present at the meeting: chairperson of the Board; managing director; president; or a vice-president who is a shareholder. If no such officer is present within 15 minutes from the time fixed for holding the meeting, the persons present and entitled to vote shall choose one of their number to be chairperson. If the secretary of the Corporation is absent, the chairperson shall appoint some person, who need not be a shareholder, to act as secretary of the meeting. If desired, one or more scrutineers, who need not be shareholders, may be appointed by a resolution or by the chairperson with the consent of the meeting.

11.10 Persons Entitled to be Present

The only persons entitled to be present at a meeting of the shareholders shall be those entitled to attend or vote at the meeting, the Directors, auditor, legal counsel of the Corporation and others who, although not entitled to attend or vote, are entitled or required under any provision of the Act, the Articles, By-laws or Unanimous Shareholder Agreement to be present at the meeting. Any other person may be admitted only on the invitation of the chairperson of the meeting or with the consent of the meeting.

11.11 Quorum

Subject to any Unanimous Shareholder Agreement, a quorum of shareholders is present at a meeting of shareholders irrespective of the number of persons actually present at the meeting, if in the case of a distributing corporation, when such holders of shares carrying not less in aggregate than 33 1/3% of the votes entitled to be voted at the meeting are present in person or represented by proxy and, in the case of any other corporation, the holders of a majority of the shares entitled to vote at the meeting are present in person or represented by proxy. A quorum need not be present throughout the meeting provided that a quorum is present at the opening of the meeting. If a quorum is not present at the time appointed for the meeting or within a reasonable time after that the shareholders may determine, the shareholders present or represented may adjourn the meeting to a fixed time and place but may not transact any other business.

11.12 Right to Vote

Every person named in the list referred to in Section 11.6 shall be entitled to vote the shares shown on the list opposite his or her name at the meeting to which the list relates.

11.13 Proxyholders and Representatives

Every shareholder entitled to vote at a meeting of shareholders may appoint a proxyholder, or one or more alternate proxyholders, as his or her nominee to attend and act at the meeting in the manner and to the extent authorized and with the authority conferred by the proxy. A proxy shall be in writing or have an electronic signature executed by the shareholder or his or her attorney and shall conform with the requirements of the Act. Alternatively, every shareholder which is a body corporate or other legal entity may authorize by resolution of its directors or governing body an individual to represent it at a meeting of shareholders and that individual may exercise on the shareholder's behalf all the powers it could exercise if it were an individual shareholder. The authority of such an individual shall be established by depositing with the Corporation a certified copy of the resolution, or in such other manner as may be satisfactory to the secretary of the Corporation or the chairperson of the meeting. Any such proxyholder or representative need not be a shareholder. The proxy is valid only at the meeting in respect of which it is given or any adjournment thereof.

11.14 Time for Deposit of Proxies

The Board may fix a time not exceeding 48 hours, excluding non-business days, preceding any meeting or adjourned meeting of shareholders before which time proxies to be used at the meeting must be deposited with the Corporation or its agent, and any time so fixed shall be specified in the notice calling the meeting. A proxy shall be acted on only if, before the time so specified, it has been deposited with the Corporation or its agent specified in the notice or if, no such time having been specified in the notice, it has been received by the secretary of the Corporation or by the chairperson of the meeting before the time of voting.

11.15 Joint Shareholders

If two or more persons hold shares jointly, any one of them present in person or duly represented at a meeting of shareholders may, in the absence of the other or others, vote the shares, but, if two or more of those persons are present in person or represented and vote, they shall vote as one the shares jointly held by them.

11.16 Votes to Govern

At any meeting of shareholders, every question shall, unless otherwise required by the Articles, By-laws, any Unanimous Shareholder Agreement or by law, be determined by a majority of the votes cast on the question.

11.17 Casting Vote

Subject to any Unanimous Shareholder Agreement, in case of an equality of votes at any meeting of shareholders either on a show of hands or on a poll, the chairperson of the meeting shall not be entitled to a second or casting vote.

11.18 Show of Hands

Subject to the Act, any question at a meeting of shareholders shall be decided by a show of hands, unless a ballot is required or demanded as provided. On a show of hands, every person who is present and entitled to vote shall have one vote. Whenever a vote by show of hands has been taken on a question, unless a ballot is demanded, an entry in the minutes of a meeting of shareholders to the effect that the chairperson declared a resolution to be carried or defeated is, in the absence of proof to the contrary, proof of the fact without proof of the number or proportion of the votes recorded in favour of or against the resolution.

11.19 Ballots

On any question proposed for consideration at a meeting of shareholders, and whether or not a show of hands has been taken on it, the chairperson may require a ballot or any person who is present and entitled to vote on the question at the meeting may demand a ballot. A ballot so required or demanded shall be taken in such manner as the chairperson shall direct. A requirement or demand for a ballot may be withdrawn at any time before the ballot is taken. If a ballot is taken, each person present shall be entitled, in respect of the shares which he or she is entitled to vote at the meeting on the question, to that number of votes provided by the Act or the Articles, and the result of the ballot so taken shall be the decision of the shareholders on the question.

11.20 Adjournment

The chairperson at a meeting of shareholders may, with the consent of the meeting and subject to such conditions as the meeting may decide, adjourn the meeting from time to time and from place to place. If a meeting of shareholders is adjourned for less than 30 days, it will not be necessary to give notice of the adjourned meeting, other than by announcement at the original meeting that is adjourned. Subject to the Act, if a meeting of shareholders is adjourned by one or more adjournments for an aggregate of 30 days or more, notice of the adjourned meeting shall be given as for an original meeting.

11.21 Resolution in Lieu of Meeting

A resolution in writing signed by all the shareholders entitled to vote on that resolution at a meeting of shareholders is as valid as if it had been passed at a meeting of the shareholders unless, in accordance with the Act:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of the resignation or removal of a Director, or the appointment or election of another person
to fill the place of that Director, a written statement is submitted to the Corporation by the Director giving the reasons for his or
her resignation or the reasons why he or she opposes any proposed action or resolution for the purpose of removing him or her from office
or the election of another person to fill the office of that Director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of the removal or resignation of an auditor, or the appointment or election of another person
to fill the office of auditor, representations in writing are made to the Corporation by that auditor concerning its proposed removal,
the appointment or election of another person to fill the office of auditor or its resignation.

11.22 Only One Shareholder

Where the Corporation has only one shareholder or only one holder of any class or series of shares, the shareholder present in person or duly represented constitutes a meeting.

**Section 12 – notices**

12.1 Method of Giving Notices

Any notice (which term includes any communication or document) to be given (which term includes sent, delivered or served) pursuant to the Act, the regulations, the Articles, the By-laws, any Unanimous Shareholder Agreement or otherwise to a shareholder, Director, officer, auditor or member of a committee of the Board shall be sufficiently given if delivered personally to the person to whom it is to be given or if mailed to him or her at his or her recorded address by prepaid, ordinary or air mail, or if sent to him or her at his or her recorded address by means of any telephonic, electronic or other communication facility. A notice so delivered shall be deemed to have been given when it is delivered personally, and a notice so mailed shall be deemed to have been given on the fifth day after it is deposited in a post office or public letter box. A notice sent by any means of electronic or recorded telephonic communication shall be deemed to have been given when dispatched or delivered to the appropriate communication company or agency. The secretary may change or cause to be changed the recorded address of any shareholder, Director, officer, auditor or member of a committee of the Board in accordance with any information believed by him or her to be reliable.

12.2 Notice to Joint Shareholders

If two or more persons are registered as joint holders of any share, any notice may be addressed to all such joint holders, but notice addressed to one of those persons shall be sufficient notice to all of them.

12.3 Computation of Time

In computing the period of days when notice must be given under any provision requiring a specified number of days notice of any meeting or other event, the period shall be deemed to begin on the day following the event that began the period and shall be deemed to end at midnight of the last day of the period, except that, if the last day of the period falls on a non-business day, the period shall end at midnight on the day next following that is not a non-business day.

12.4 Undelivered Notices

If any notice given to a shareholder pursuant to Section 12.1 is returned on two consecutive occasions because such shareholder cannot be found, the Corporation shall not be required to give any further notices to that shareholder until he or she informs the Corporation in writing of his or her new address.

12.5 Omissions and Errors

The accidental omission to give any notice to any shareholder, Director, officer, auditor or member of a committee of the Board or the non-receipt of any notice by any such person or any error in any notice not affecting the substance of the notice shall not invalidate any action taken at any meeting held pursuant to the notice or otherwise founded on it.

12.6 Persons Entitled by Death or Operation of Law

Every person who, by operation of law, transfer, death of a shareholder or any other means whatsoever, shall become entitled to any share, shall be bound by every notice in respect of the share which has been duly given to the shareholder from whom he or she derives his or her title to the share before his or her name and address is entered on the securities register (whether the notice was given before or after the happening of the event on which he or she became so entitled) and before he or she furnished the Corporation with the proof of authority or evidence of his or her entitlement prescribed by the Act.

12.7 Waiver of Notice

Any shareholder, proxyholder or other person entitled to notice of or attend a meeting of shareholders, Director, officer, auditor or member of a committee of the Board may at any time waive any notice, or waive or abridge the time for any notice, required to be given to him or her under the Act, the regulations, the Articles, the By-laws, any Unanimous Shareholder Agreement or otherwise, and that waiver or abridgement, whether given before or after the meeting or other event of which notice is required to be given, shall cure any default in the giving or in the time of the notice, as the case may be. Any such waiver or abridgement shall be in writing, except a waiver of notice of a meeting of shareholders or of the Board or a committee of the Board, which may be given in any manner.

**Section 13 – effective date**

13.1 Effective Date

These By-laws shall come into force when made by the Board in accordance with the Act.

13.2 Paramountcy

In the event of any conflict between any provision of these By-laws and any provision of any Unanimous Shareholder Agreement, the provision of the Unanimous Shareholder Agreement shall prevail to the extent of the conflict, and the Directors and the shareholders shall amend these By-laws accordingly.

**MADE** by the Board on July 27, 2022.

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## Exhibit 10.2

**Exhibit 10.2**

**TECHNOLOGY ACQUISITION AGREEMENT**

This Technology Acquisition Agreement (**Agreement**) dated effective as of February 5, 2021 (the **Effective Date**) is by and between AdvEn Industries Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (the **Corporation**) and Tangold Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (**Acquiror**) (collectively, the **Parties** or each individually, a **Party**).

**WHEREAS:** 

A. The
Corporation has developed, and is the owner of, the Activated Carbon Technology, the Carbon Fibre Technology, and the Solid Bitumen Technology.

B. The
 Acquiror desires to acquire the exclusive right to use and exploit the Carbon Fibre Technology
 in the Territory and develop, own, and exploit all Improvements related thereto, pursuant
 to and in accordance with the terms of this Agreement.

C. The
 Corporation has granted AdvEn Bitumen Innovation Inc. (**Bitumen Innovation**) the exclusive
 right to use and exploit the Solid Bitumen Technology in the Territory and develop, own,
 and exploit all improvements related thereto.

**NOW THEREFORE**, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. <u>Definitions</u>.
 For purposes of this Agreement, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Acquiror** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Activated Carbon Technology** means the Patents and Know-How, each for use in the field of activated
 carbons and activated carbon feedstock, including carbonized solid bitumen using solid bitumen
 as feedstock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Agreement** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Assignee** has the meaning set forth in <u>Section 13.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Assignor** has the meaning set forth in <u>Section 13.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Bankruptcy Event** has the meaning set forth in <u>Section 12.2(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Bitumen Innovation** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Bitumen Innovation Entity** means Bitumen Innovation or its permitted successor or Assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Business Day** means a day other than a Saturday, Sunday, or other day on which commercial banks
 in Edmonton, Alberta are authorized or required by Law to be closed for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Carbon Fibre Technology** means the Patents and Know-How, each for use in the field of carbon
 fibre and carbon fibre feedstock, including solid bitumen as feedstock for any use, with
 a melting point greater than or equal to 150 degrees Celsius.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Confidential Information** means all non-public, confidential, or proprietary information of the Disclosing
 Party, whether in oral, written, electronic, or other form or media, including information
 that is marked, designated, or otherwise identified as "confidential" and any
 information that, due to the nature of its subject matter or circumstances surrounding its
 disclosure, would reasonably be understood to be confidential or proprietary. Confidential
 Information does not include information that the Receiving Party can demonstrate by documentation:
 (i) was already known to the Receiving Party without restriction on use or disclosure prior
 to receipt of such information directly or indirectly from or on behalf of the Disclosing
 Party; (ii) was or is independently developed by the Receiving Party without reference to
 or use of any Confidential Information; (iii) was or becomes generally known by the public
 other than by breach of this Agreement by, or other wrongful act of, the Receiving Party;
 or (vi) was received by the Receiving Party from a third party who was not, at the time of
 receipt, under any obligation to the Disclosing Party or any other Person to maintain the
 confidentiality of such information. For the avoidance of doubt and subject to above exclusions
 (i)-(iv), Confidential Information includes the Patents and the Know-How.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Consideration Shares** means 26,000,000 class A voting common shares in the authorized capital issued
 at a deemed issue price of C$0.0173 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Cost Amount**, subject to any adjustments to be made pursuant to subsection 85(1) of the ITA,
 has the same meaning as that term is defined in subsection 248(1) of the ITA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **Corporation** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **Disclosing Party** has the meaning set forth in <u>Section 8.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Effective Date** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **Elected Amount** means the amount jointly elected by the Parties pursuant to <u>Section 4.4.</u> below and as set out in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **Fair Market Value** means C$450,000.00, being the fair market value of the Carbon Fibre Technology
 as at the Effective Date, determined by an independent Chartered Business Valuator in good
 standing with The Canadian Institute of Chartered Business Valuators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **Governmental Authority** means any federal, state, national, supranational, local, or other government,
 whether domestic or foreign, including any subdivision, department, agency, instrumentality,
 authority (including any regulatory authority), commission, board, or bureau thereof, or
 any court, tribunal, or arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **Improvement** means any modification of or improvement or enhancement relating to the Carbon Fibre
 Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **Indemnitee** has the meaning set forth in <u>Section 11.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **Independent Action** has the meaning set forth in <u>Section 5.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **Infringement** has the meaning set forth in <u>Section 6.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **ITA** means the *Income Tax ITA* (Canada).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **Know-How** means any and all technical information, trade secrets, formulas, prototypes, specifications,
 directions, instructions, test protocols, procedures, results, studies, analyses, raw material
 sources, data, manufacturing data, formulation or production technology, conceptions, ideas,
 innovations, discoveries, inventions, processes, methods, materials, machines, devices, formulae,
 equipment, enhancements, modifications, technological developments, techniques, systems,
 tools, designs, drawings, plans, software, documentation, data, programs, and other knowledge,
 information, skills, and materials owned by Corporation and useful in the manufacture, sale,
 or use of the Products or Process, existing as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **Law** means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty,
 common law, judgment, decree, other requirement or rule of law of any federal, state, local,
 or foreign government or political subdivision thereof, or any arbitrator, court, or tribunal
 of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **Losses** means all losses, damages, liabilities, costs, and expenses, including reasonable attorneys'
 fees and other litigation costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **Optionee** has the meaning set forth in <u>Section 12.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **Party** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **Patent** means any of: (a) the Priority Patent Application; (b) any patent application that claims
 priority to the patent application identified in (a); (c) any patents issuing on any patent
 application identified in (a) or (b), including any reissues, renewals, re-examinations, substitutions
 or extensions thereof; (d) any foreign counterpart (including Patent Cooperation Treaty application(s))
 of any patent or patent application identified in (a), (b) or (c); and (e) any supplementary
 protection certificates, any other patent term extensions and exclusivity periods and the
 like of any patents and patent applications identified in (a) through (d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **Person** means an individual, corporation, partnership, joint venture, limited liability company,
 governmental authority, unincorporated organization, trust, association, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **Process** means any process or part thereof the use, practice, sale, offer for sale, of which would
 constitute, but for the rights acquired by the Acquiror pursuant to and in accordance with
 this Agreement, an infringement of any Valid Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **Products** means any service or product, or part thereof the manufacture, use, sale, offer for sale,
 or importation of which would constitute, but for the rights acquired by the Acquiror pursuant
 to and in accordance with this Agreement, an infringement of any Valid Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) **Priority Patent Application** means U.S. Provisional Patent Application No. 63/092,912.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Prosecution Action** has the meaning set forth in <u>Section 5.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) **Receiving Party** has the meaning set forth in <u>Section 8.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) **Representatives** means a Party's employees, officers, directors, consultants, and legal advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) **Sell-Off Period** has the meaning set forth in <u>Section 12.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) **Solid Bitumen Technology** means the Patents and Know-How, each for use in the field of solid
 bitumen, including as feedstock for any use, with a melting point less than 150 degrees Celsius,
 but specifically excluding use in the respective fields of the Activated Carbon Technology
 and the Carbon Fibre Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) **Term** has the meaning set forth in <u>Section 12.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) **Territory** means worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) **Third-party Action** has the meaning set forth in <u>Section 11.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) **Valid Claim** means, on a country-by-country basis, a claim of a pending application, or an unexpired
 issued or granted patent of the Patents, as long as the claim has not been admitted by Corporation
 or otherwise caused to be invalid or unenforceable through reissue, disclaimer, or otherwise,
 or held invalid or unenforceable by a Governmental Authority of competent jurisdiction from
 whose judgment no appeal is allowed or timely taken.

2. <u>Carbon Fibre Technology</u>.

2.1 <u>Grant, Transfer, and Acquisition of Rights</u>. Subject to the terms and conditions of this Agreement, the Corporation hereby grants, transfers,
and conveys to the Acquiror, and the Acquiror hereby acquires from the Corporation, during the Term an exclusive, sublicensable (only
in accordance with <u>Section 2.3</u>), transferable (only in accordance with <u>Section 13.6</u>) right and license to use and exploit
the Carbon Fibre Technology including to make, use, offer to sell, sell, and import Products and to practice Processes in the Territory
in the field of the Carbon Fibre Technology.

2.2 <u>Restrictions on Corporation</u>. The Corporation shall neither itself nor grant others the right to make,
 use, offer to sell, sell, or import Products or Practice the Processes in the field of the
 Carbon Fibre Technology during the Term in in the Territory.

2.3 <u>Sublicensing</u>.
 The Corporation hereby grants, transfers, and conveys to the Acquiror the right to sublicense
 all and any of its rights to and in respect of the Carbon Fibre Technology. The granting
 of any such sublicenses will be at the Acquiror's sole and exclusive discretion and Acquiror
 will have the sole and exclusive power to determine the identity of any sublicensee, the
 applicable fees or royalty rates, if any, and other terms and conditions of the sublicense;
 provided, that the Acquiror will ensure that no sublicense may exceed the scope of rights
 granted to the Acquiror pursuant to and in accordance with this Agreement and each sublicensee
 agrees to be bound by the applicable terms and conditions of this Agreement. The Acquiror
 shall enforce all sublicenses at its own cost and shall be responsible for the acts and omissions
 of its sublicensees. In the event of the termination or expiration of this Agreement, all
 sublicense rights will terminate effective as of the termination or expiration of this Agreement.

2.4 <u>Improvements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 right, title, and interest in any Improvement conceived, made, reduced to practice, or acquired
 by the Acquiror during the Term of this Agreement, and all of the Acquiror's right, title,
 and interest in any patents and patent applications claiming any such Improvements, will
 as between the Parties, remain the sole and exclusive property of the Acquiror, provided
 that the Acquiror hereby grants to the Corporation an exclusive, worldwide, royalty-free,
 transferable, license, with the right to grant sublicenses, under its right, title, and interest
 in such Improvements, patents, and patent applications in the fields of the Solid Bitumen
 Technology and the Activated Carbon Technology. Acquiror shall disclose each Improvement
 to the Corporation within 30 days after it is conceived, made, reduced to practice, or acquired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All
 right, title, and interest in any Improvement conceived, made, or reduced to practice, or
 acquired by the Corporation during the Term of this Agreement, and all of Corporation's patents
 and patent applications claiming any such Improvements, will as between the Parties, remain
 the sole and exclusive property of the Corporation, provided that all such Improvements,
 patents, and patent applications shall be included within the scope of Carbon Fibre Technology
 (as a Patent in the case of patents and patent applications or as Know-how otherwise), and
 subject to all of the Acquiror's rights and obligations hereunder in relation to Carbon
 Fibre Technology.

2.5 <u>Transfer of Know-How</u>. Promptly after the Effective Date or within thirty days upon being conceived,
 made, reduced to practice, or acquired by the Corporation, the Corporation shall deliver
 the Know-How to the Acquiror in such form and media as the Acquiror may reasonably request.
 For the avoidance of doubt, all Know-How delivered to the Acquiror hereunder is the Corporation's
 Confidential Information and subject to the confidentiality and non-disclosure obligations
 under <u>Section 8</u>, and the Acquiror's use of any documentation, materials, or other
 information concerning the Know-How provided under this <u>Section 2.5</u> is subject to
 the terms and conditions of this Agreement, including the scope of the rights granted to
 the Acquiror under <u>Article 2</u>. Upon the Acquiror's reasonable request, the Corporation
 shall make available one or more of its technical personnel to provide the Acquiror with
 reasonable technical assistance concerning the Know-How with reasonable compensation to the
 Acquiror for the technical personnel's time and reasonable travel expenses.

3. <u>Payments</u>.

3.1 In
 consideration for the rights granted, transferred, and conveyed to the Acquiror hereunder,
 the Acquiror shall pay to the Corporation on a non-refundable basis an amount equal to the
 Fair Market Value by issuing the Consideration Shares to the Corporation.

3.2 No
royalties are payable by the Acquiror to the Corporation.

3.3 <u>Section 85(1) Election</u>. The Parties will jointly elect and the Corporation shall file in the
 prescribed form and within the prescribed time under subsection 85(6) of the ITA and under
 the corresponding sections of any applicable provincial statute electing an agreed amount
 with respect to the Consideration Shares (as consideration for the acquisition of the rights
 granted to and acquired by the Acquiror with respect to the Carbon Fibre Technology hereunder)
 in accordance with <u>Schedule A</u>, which Elected Amount shall be, pursuant to subsection
 85(1) of the ITA, the Corporation's proceeds of disposition and the Acquiror's cost of the
 Carbon Fibre Technology, pursuant to and in accordance with the terms of this Agreement.

3.4 <u>Price Adjustment</u>. In the event of any income tax assessment or reassessment (the **Tax Notice**) against either the Corporation or the
Acquiror with respect to the Consideration Shares (as consideration for the acquisition of the rights granted to and acquired by the
Acquiror with respect to the Carbon Fibre Technology hereunder), which adjusts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
Cost Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Elected Amount; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Fair Market Value,

of the Carbon Fibre Technology, then the Party so assessed or reassessed (the **First Party**) shall immediately give notice to the other Party of the Tax Notice. At the same time the First Party shall indicate whether or not the First Party will pursue a conscientious objection to the Tax Notice. In the event that the First Party does not propose to pursue such objection to the Tax Notice, the other Party shall have 30 days from the receipt of the notice to advise the First Party of its desire to oppose the Tax Notice (the **Objecting Party**). In that event, the Objecting Party shall have full authority to conscientiously prosecute an objection on behalf of the First Party and the First Party agrees to cooperate fully in respect of such objection, including the filing of documents, attendance at meetings and doing such other acts and things as may reasonably be required by the Objecting Party.

3.5 In
the event that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no
 Party seeks to pursue an objection to the Tax Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 appeal rights in respect of the Tax Notice have expired without appeals having been taken;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 court or tribunal having jurisdiction in the matter has decided to uphold the determination
 contained in the Tax Notice or has decided that the Cost Amount or the Fair Market Value
 is an amount (the **Court Determined Amount**) which is equal to neither the amount set
 out in the Tax Notice nor value of the Consideration Shares and: (i) all appeal rights in
 respect of such decision have been exhausted or have expired without appeals having been
 taken; or (ii) the Parties agree with such decision,

then the Cost Amount, the Elected Amount, or the Fair Market Value, as the case may be, of the relevant property or properties set forth in the Tax Notice or, where the Court Determined Amount is different than the amount set forth in the Tax Notice, the Court Determined Amount, shall constitute the Cost Amount, the Elected Amount, or the Fair Market Value of the Carbon Fibre Technology for the purposes of this Agreement, so as to effect an automatic adjustment in the Elected Amount or the value of the Consideration Shares, if necessary and appropriate. If relevant, the consideration as represented by the Consideration Shares shall be adjusted in accordance with the Articles of Incorporation of the Acquiror as registered with the Registrar of Corporations in the Province of Alberta.

3.6 Should
an objection to the Tax Notice be initially pursued and the Objecting Party wishes to abandon further pursuit by terminating any negotiations,
by accepting a settlement proposal with the Canada Revenue Agency, or by not appealing a judgment of a court of competent jurisdiction,
or by any other means whatever, then such Objecting Party shall give full details and immediate notice (**Notice to Desist**) to the
other Party. If within 20 days of receipt of the Notice to Desist, the other Party fails to deliver a notice of its desire to continue
such objection (**Notice to Continue**), then the Objecting Party shall be entitled to consummate the settlement proposal with the
Canada Revenue Agency, adopt a judgment, or abandon any further pursuit of the matter. In that event, the Cost Amount, the Elected Amount,
or the Fair Market Value as thus determined shall be the Elected Amount (if necessary and appropriate) or amount of the Consideration
Shares. The value of the Consideration Shares shall be adjusted as required. Should a Notice to Continue be delivered as aforesaid by
the other Party, the provisions of this paragraph shall apply *mutatis mutandis* thereto.

3.7 It
 is the intention of the Parties that the transaction contemplated by this Agreement take
 place on a tax-deferred basis, such that no capital gains shall be realized by the Corporation
 on its disposition of the Carbon Fibre Technology, and this <u>Article 3</u> shall be interpreted
 on such basis. For greater certainty, unless otherwise agreed between the Parties, where
 the application of this <u>Article 3</u> results in an adjustment to the Cost Amount of the
 Carbon Fibre Technology, the Elected Amount shall, if reasonable or appropriate, be adjusted
 on a retroactive basis to be equal to such amount as would give effect to the joint intention
 expressed in this <u>Article 3</u>, and either the Corporation and the Acquiror may make
 such filings as may be necessary to give effect to such adjustment to the Elected Amount.

4. <u>Records and Audit</u>.

4.1 Acquiror
 is not required to maintain record(s) for the benefit of the Corporation.

4.2 Acquiror
 is not required to conduct an audit, or permit an auditor to audit, for the benefit of the
 Corporation.

5. <u>Patent Prosecution and Maintenance</u>.

5.1 <u>Patent Prosecution and Maintenance</u>. Subject to <u>Section 5.2</u>, for each patent application
 and patent included within the Patents, the Corporation shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prepare,
file, prosecute, and maintain all applications and registrations for the Patents (each a **Prosecution Action**), including without
limitation selection of filing jurisdictions and any amendment, using reasonable care and skill and using counsel reasonably acceptable
to Acquiror;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall
 solicit and consider in good faith all input including request of Acquiror in making decisions
 relating to Prosecution Actions, but is permitted to give equal weight to the input of the
 Acquiror, input of the Bitumen Innovation Entity, and Corporation's own input;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) keep
 the Acquiror informed of the filing and progress of all aspects of the prosecution of such
 patent application and the issuance of patents from any such patent application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) provide
 the Acquiror with a copy of such patent application, amendments thereto, and other related
 correspondence to and from patent offices, and, to the extent reasonably practicable, permit
 the Acquiror an opportunity to offer its input thereon before making a submission to a patent
 office, and the Corporation shall consider such input in good faith pursuant to <u>Section 5.1(b)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) consult
 with the Acquiror concerning any decisions that could affect the scope or enforcement of
 any issued claims or the potential abandonment of such patent application or patent and permit
 the Acquiror an opportunity to offer its input before implementing any such decisions, and
 the Corporation shall consider such input in good faith pursuant to <u>Section 5.1(b)</u>;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) notify
 the Acquiror in writing of any changes in the scope or status of such patent or patent application.

5.2 <u>Independent Action</u>. In the event that the Corporation declines to take a Prosecution Action, as requested by the Acquiror:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Corporation shall notify the Acquiror in writing, to the extent possible, at least 30 days
 in advance of the due date of the declined Prosecution Action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Acquiror has the right to require the Corporation to take the declined Prosecution Action
 provided that the Acquiror agree to bears all costs for the Prosecution Action (the **Independent Action**). The Corporation shall take the Independent Action at the Acquiror's request,
 to the extent reasonable and to the extent the Independent Action does not prejudice the
 rights of the Corporation.

5.3 <u>Costs</u>.
Subject to <u>Section 5.2</u>, the Parties agree that all reasonable expenses incurred by the Corporation after the Effective Date for
Prosecution Actions will be shared in equal parts by the Corporation, the Acquiror, and the Bitumen Innovation Entity, with the exception
of expenses for Independent Actions pursuant to <u>Section 5.2</u> which shall be born solely by the Acquiror. The Acquiror shall reimburse
the Corporation for its portion of the foregoing expenses within 30 days receiving from the Corporation documentation evidencing such
expenses.

6. <u>Enforcement of Intellectual Property Rights</u>.

6.1 <u>Notice of Infringement or Third-Party Claims</u>. If either Party becomes aware of any suspected
 infringement of any intellectual property rights included in the Carbon Fibre Technology
 by a third party in the Territory (an **Infringement**), such Party shall promptly notify
 the other Party and provide it with all details of such Infringement, as applicable, that
 are known by such Party.

6.2 <u>Right to Bring Action</u>. The Acquiror shall have the first right, but not the obligation, to
 take action in the prosecution, prevention, or termination of any Infringement. If the Acquiror
 does not take action in the prosecution, prevention, or termination of any Infringement pursuant
 to this <u>Section 6.2</u>, and has not commenced negotiations with the infringer for the
 discontinuance of said Infringement, within 90 days after receipt of notice to the Acquiror
 by the Corporation of the existence of an Infringement, the Corporation may elect to do so.

6.3 <u>Cooperation, Recovery, and Settlement</u>. In
 the event a Party undertakes the enforcement of any intellectual property rights in accordance
 with <u>Section 6.2</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the other Party shall provide all reasonable cooperation and
assistance, including providing access to relevant documents and other evidence, making its employees available at reasonable business
hours, and being joined as a party to such action as necessary to establish standing, provided that such Party reimburses the other Party
promptly for any costs and expenses incurred in connection with providing such assistance, including reasonable attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such
 Party may settle any such suit, action, or other proceeding, whether by consent order, settlement,
 or other voluntary final disposition, without the prior written approval of the other Party,
 provided that the Corporation shall not settle any such suit, action, or other proceeding
 in a manner that adversely affects the rights of the Acquiror concerning the Carbon Fibre
 Technology without the Acquiror's prior written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Recovery</u>.
 Any recovery, damages, or settlement funds derived from enforcement of intellectual property
 rights in accordance with <u>Section 6.2</u> will be retained by the enforcing Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Invalidity or Unenforceability</u>. If any suit, action, or other proceeding alleging invalidity or
 unenforceability of any patent claim with the Patents is brought against the Acquiror or
 any sublicensee, the Acquiror shall promptly notify the Corporation in writing and the Corporation,
 at its option, will have the right, within 30 days of receiving such notice, to take over
 the sole defense of the invalidity and/or unenforceability aspect of the suit, action, or
 other proceeding at its own expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Compliance with Laws</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Recordation of Agreement</u>. If recordation of this Agreement or any part of it with a national or supranational
 Governmental Authority is necessary for the Acquiror to fully enjoy the rights, privileges,
 and benefits of this Agreement, then the Acquiror may, at its own expense, record this Agreement
 or all such parts of this Agreement and information concerning the rights granted to the
 Acquiror hereunder with each such appropriate national or supranational Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Confidentiality</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Confidentiality Obligations</u>. Each Party (the **Receiving Party**) acknowledges that in connection
 with this Agreement it will gain access to Confidential Information of the other Party (the **Disclosing Party**). As a condition to being furnished with Confidential Information,
 the Receiving Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not
 use the Disclosing Party's Confidential Information other than as strictly necessary to exercise
 its rights and perform its obligations under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain
 the Disclosing Party's Confidential Information in strict confidence and, subject to <u>Section 8.2</u>, not disclose the Disclosing Party's Confidential Information without the Disclosing
 Party's prior written consent, provided, however, the Receiving Party may disclose the Confidential
 Information to its Representatives who:

&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) have
 a need to know the Confidential Information for purposes of the Receiving Party's performance,
 or exercise of its rights with respect to such Confidential Information, under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have
 been apprised of this restriction; 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;(iii) are
 themselves bound by written nondisclosure agreements at least as restrictive as those set
 out in this <u>Article 8</u>, provided further that the Receiving Party will be responsible
 for ensuring its Representatives' compliance with, and will be liable for any breach by its
 Representatives of, this <u>Article 8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use
reasonable care, at least as protective as the efforts it uses with respect to its own confidential information, to safeguard the Disclosing
Party's Confidential Information from use or disclosure other than as permitted hereby.

8.2 <u>Exceptions</u>.
If the Receiving Party becomes legally compelled to disclose any Confidential Information, the Receiving Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) provide
 prompt written notice to the Disclosing Party so the Disclosing Party may seek a protective
 order or other appropriate remedy or waive its rights under <u>Article 8</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) disclose
 only the portion of Confidential Information it is legally required to furnish.

If a protective order or other remedy is not obtained, or the Disclosing Party waives compliance under <u>Article 8</u>, the Receiving Party shall, at the Disclosing Party's expense, use reasonable efforts to obtain assurance that confidential treatment will be afforded the Confidential Information.

9. <u>Representations and Warranties</u>.

9.1 <u>Mutual Representations and Warranties</u>. Each Party represents and warrants to the other Party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is duly organized, validly existing, and in good standing as a corporation or other entity
 as represented herein under the laws and regulations of its jurisdiction of incorporation,
 organization, or chartering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 has, and throughout the Term will retain, the full right, power, and authority to enter into
 this Agreement and to perform its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 execution of this Agreement by its representative whose signature is set forth at the end
 hereof has been duly authorized by all necessary corporate action of the Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) when
 executed and delivered by such Party, this Agreement will constitute the legal, valid, and
 binding obligation of that Party, enforceable against that Party in accordance with its terms.

9.2 <u>Corporation's Representations and Warranties</u>. Corporation represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is the sole and exclusive owners of the entire right, title, and interest in and to the Carbon
 Fibre Technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 has, and throughout the Term will retain, the right to grant, transfer and convey the rights
 granted, transferred, and conveyed to the Acquiror hereunder, and it has not granted, and
 is not under any obligation to grant, to any third party any license, lien, option, encumbrance,
 or other contingent or non-contingent right, title, or interest in or to the Carbon Fibre
 Technology; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there
 is no settled, pending, or to its knowledge threatened litigation, claim, or proceeding alleging
 that any Patent is invalid or unenforceable, and it has no knowledge after reasonable investigation
 of any factual, legal, or other reasonable basis for any such litigation, claim, or proceeding.

10. <u>Exclusion of Consequential and Other Indirect Damages</u>. TO THE FULLEST EXTENT PERMITTED BY LAW, NEITHER THE CORPORATION NOR THE ACQUIROR WILL
BE LIABLE TO THE OTHER OR ANY OTHER PERSON FOR ANY INJURY TO OR LOSS OF GOODWILL, REPUTATION, BUSINESS PRODUCTION, REVENUES, PROFITS,
ANTICIPATED PROFITS, CONTRACTS, OR OPPORTUNITIES (REGARDLESS OF HOW THESE ARE CLASSIFIED AS DAMAGES), OR FOR ANY CONSEQUENTIAL, INCIDENTAL,
INDIRECT, EXEMPLARY, SPECIAL, PUNITIVE, OR ENHANCED DAMAGES, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE),
STRICT LIABILITY, PRODUCT LIABILITY, OR OTHERWISE (INCLUDING THE ENTRY INTO, PERFORMANCE, OR BREACH OF THIS AGREEMENT), REGARDLESS OF
WHETHER SUCH LOSS OR DAMAGE WAS FORESEEABLE AND THE PARTY AGAINST WHOM LIABILITY IS CLAIMED HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
LOSS OR DAMAGE, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED REMEDY OF ITS ESSENTIAL PURPOSE.

11. <u>Indemnification</u>.

11.1 <u>Indemnification</u>.
Each Party (the **Indemnitor**) shall indemnify, defend, and hold harmless the other Party and its officers, directors, employees,
agents, successors, and assigns (each, an **Indemnitee**) against all Losses arising out of or resulting from any third-party claim,
suit, action, or proceeding (each a **Third-Party Action**) related to, arising out of, or resulting from Indemnitor's breach of any
representation, warranty, covenant, or obligation under this Agreement.

11.2 <u>Acquiror's Indemnification</u>. The Acquiror shall indemnify defend, and hold harmless the Corporation and its officers, directors, employees, agents,
successors, and assigns against all Losses arising out of or resulting from any Third-party Action related to, arising out of, or resulting
from the Acquiror's use, sale, transfer, or other disposition by the Acquiror or its sublicensee of the Products or the Process.

11.3 <u>Indemnification Procedure</u>. An Indemnitee shall promptly notify the Indemnitor in writing of any Third-party Action and cooperate with Indemnitor
at the Indemnitor's sole cost and expense. The Indemnitor shall immediately take control of the defense and investigation of the Third-party
Action and shall employ counsel reasonably acceptable to Indemnitee to handle and defend the same, at the Indemnitor's sole cost and
expense. The Indemnitor shall not settle any Third-party Action in a manner that adversely affects the rights of any Indemnitee without
the Indemnitee's prior written consent. The Indemnitee's failure to perform any obligations under this <u>Section 11.3</u> shall not
relieve the Indemnitor of its obligation under this <u>Section 11.3</u> except to the extent the Indemnitor can demonstrate that it has
been materially prejudiced as a result of the failure. The Indemnitee may participate in and observe the proceedings at its own cost
and expense with counsel of its own choosing.

12. <u>Term and Termination</u>.

12.1 <u>Term</u>.
This Agreement is effective as of the Effective Date and, unless terminated earlier in accordance with <u>Section 12.2</u>, will continue
in full force and effect on a Product-by-Product and country-by-country basis until the expiration of the last to expire Valid Claim of
a Patent in such country (the **Term**).

12.2 <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Acquiror may terminate this Agreement at any time without cause, and without incurring any
 additional obligation, liability, or penalty, by providing at least 60 days' prior written
 notice to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Either
 Party may terminate this Agreement, effective immediately, if the other Party: (i) is dissolved
 or liquidated or takes any corporate action for such purpose; (ii) becomes insolvent or is
 generally unable to pay, or fails to pay, its debts as they become due; (iii) files or has
 filed against it a petition for voluntary or involuntary bankruptcy or otherwise becomes
 subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy
 or insolvency Law; (iv) makes or seeks to make a general assignment for the benefit of its
 creditors; or (v) applies for or has a receiver, trustee, custodian, or similar agent appointed
 by order of any court of competent jurisdiction to take charge of or sell any material portion
 of its property or business (each a **Bankruptcy Event**).

12.3 <u>Option to Purchase on Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In
 the event of a Bankruptcy Event of the Corporation and termination of this Agreement by the
 Acquiror pursuant to <u>Section 12.2(c)</u>, the Acquiror shall have an option to purchase
 ownership of the Patents and Know-How from the Corporation at a fair market value determined
 by a valuator reasonably agreed upon by the Corporation and the Acquiror, provided that the
 Acquiror acknowledges that the Corporation has granted or may grant a similar option to Bitumen
 Innovation, and in the event that both the Acquiror and the Bitumen Innovation Entity (each,
 an **Optionee**) exercise their respective options to purchase the Patents and Know-How
 from Corporation then the Corporation shall have the right to sell the Patents and Know-How
 to the Optionee that makes an offer on the most favourable terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Acquiror acquires the Patents and Know-How pursuant to <u>Section 12.3(a)</u>, then the
 Acquiror agrees to be bound by applicable terms and conditions of any licenses to and under
 the Patents and Know-How to any third parties including the Bitumen Innovation Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 the Acquiror acquires the Patents and Know-How pursuant to <u>Section 12.3(a)</u>, at the
 request of the Corporation, the Acquiror shall negotiate with Corporation in good faith to
 grant a license on commercially reasonable terms in and to the Activated Carbon Technology
 for use by the Corporation during and after the Bankruptcy Event.

12.4 <u>Sell-Off Period</u>. For a period of 90 days after the effective date of the termination of this Agreement (the **Sell-Off Period**), the Acquiror
and its sublicensees, will have the right to sell or otherwise dispose of all existing Products in its possession, custody, or control
and to complete the manufacture of and sell or otherwise dispose of all Products in the course of manufacture as of the effective date
of termination, in each case, in accordance with the applicable terms and conditions of this Agreement.

12.5 <u>Survival</u>.
The rights and obligations of the Parties set forth in this <u>Section 12.5</u> and <u>Section 1</u> (Definitions), <u>Section 8</u> (Confidentiality), <u>Section 9</u> (Representations and Warranties), <u>Section 10</u> (Exclusion of Consequential and Other Indirect
Damages), <u>Section 11</u> (Indemnification), <u>Section 12.3</u> (Option to Purchase on Termination), <u>Section 12.4</u> (Sell-off
Period) and <u>Section 13</u> (Miscellaneous), and any right, obligation, or required performance of the Parties in this Agreement which,
by its express terms or nature and context is intended to survive termination or expiration of this Agreement, will survive any such
termination or expiration.

13. <u>Miscellaneous</u>.

13.1 <u>Further Assurances</u>. Each Party shall, upon the reasonable request, and at the sole cost and expense,
 of the other Party, execute such documents and take such further actions as may be necessary
 to give full effect to the terms of this Agreement.

13.2 <u>Independent Contractors</u>. The relationship between the Parties is that of independent contractors.
 Nothing contained in this Agreement creates any agency, partnership, joint venture, or other
 form of joint enterprise, employment, or fiduciary relationship between the Parties, and
 neither Party has authority to contract for or bind the other Party in any manner whatsoever.

13.3 <u>No Public Statements</u>. Neither Party may issue or release any announcement, statement, press
 release, or other publicity or marketing materials relating to this Agreement or, unless
 expressly permitted under this Agreement, otherwise use the other Party's trademarks, service
 marks, trade names, logos, domain names, or other indicia of source, association, or sponsorship,
 in each case, without the prior written consent of the other Party.

13.4 <u>Notices</u>.
 All notices, requests, consents, claims, demands, waivers, and other communications (other
 than routine communications having no legal effect) must be in writing and sent to the respective
 Party at the addresses indicated below (or such other address for a Party as may be specified
 in a notice given in accordance with this <u>Section 13.4</u>):

If to Corporation: 9407-3 20 Avenue NW

Edmonton, Alberta

T6N 1E5

Telephone: +1 (780)-395-7919

E-mail: yanguang.yuan@adven-industries.com

Attention: Yanguang Yuan

If to Acquiror: 1400, 350 – 7 Avenue SW

Calgary, Alberta

T2P 3N9

Telephone: +1 (780)-395-7919

E-mail: yanguang.yuan@adven-industries.com

Attention: Yanguang Yuan

Notices sent in accordance with this <u>Section 13.4</u> will be deemed effective: (a) when received or delivered by hand (with written confirmation of receipt); (b) when received, if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail (in each case, with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the fifth Business Day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.

13.5 <u>Entire Agreement</u>. This Agreement, together with all Schedules and any other documents incorporated herein by reference, constitutes the
sole and entire agreement of the Parties with respect to the subject matter contained herein, and supersedes all prior and contemporaneous
understandings and agreements, both written and oral, with respect to such subject matter. In the event of any conflict between the terms
and provisions of this Agreement and those of any Schedule or other document, the following order of precedence will govern: (a) first,
this Agreement, excluding its Schedules; and (b) second, the Schedules to this Agreement as of the Effective Date.

13.6 <u>Assignment</u>.
Each Party (the **Assignor**) may freely assign or otherwise transfer all of its rights, or delegate or otherwise transfer all of
its obligations or performance, under this Agreement to a third party (the **Assignee**) without the other Party's consent provided
the Assignee agrees to all the covenants and obligations of this Agreement and takes the place of the Assignor with respect to this Agreement.
This Agreement is binding upon and inures to the benefit of the Parties hereto and their respective permitted successors and assigns.
No delegation or other transfer will relieve a Party of any of its obligations or performance under this Agreement. Any purported assignment,
delegation, or transfer in violation of this <u>Section 13.6</u> is void.

13.7 <u>No Third-Party Beneficiaries</u>. This Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns
and nothing herein, express or implied, is intended to or will confer upon any other Person any legal or equitable right, benefit, or
remedy of any nature whatsoever, under, or by reason of this Agreement.

13.8 <u>Amendment; Modification; Waiver</u>. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each Party.
No waiver by any Party of any of the provisions hereof will be effective unless explicitly set forth in writing and signed by the waiving
Party. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power, or
privilege arising from this Agreement will operate or be construed as a waiver thereof; nor will any single or partial exercise of any
right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy,
power, or privilege.

13.9 <u>Severability</u>.
If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or
unenforceability will not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision
in any other jurisdiction. Upon a determination that any term or other provision is invalid, illegal, or unenforceable, the Parties shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually
acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent
possible.

13.10 <u>Governing Law; Submission to Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the laws of the Province of
Alberta and the laws of Canada applicable therein, without regard to conflict of law principles. Any claim or dispute arising from or
under this Agreement must be brought in the City of Edmonton, Alberta and each Party attorns to the jurisdiction of the courts of Alberta
with respect to any claim or dispute arising from this Agreement.

13.11 <u>Counterparts</u>.
This Agreement may be executed in one or more counterparts, including counterparts executed by way of electronic signature, each of which
so executed shall constitute an original and all of which together shall constitute one and the same agreement. The Parties shall be
entitled to rely on delivery of a copy delivered by facsimile or other means of electronic transmission (including by way of DocuSign
or other similar application) of the executed Agreement and such electronically transmitted copy shall be legally effective to create
a valid and binding agreement.

[remainder of page intentionally left blank]

**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed as of the date first written above by their respective duly authorized representatives.

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| Per: | /s/ Yanguang Yuan |
| Name: | Yanguang Yuan |
| Title: | Director |
| **TANGOLD INC.** | **TANGOLD INC.** |
| Per: | /s/ Yanguang Yuan |
| Name: | Yanguang Yuan |
| Title: | Director |

---

**<u>SCHEDULE A</u>**

Property Transferred:

---

| | | | |
|:---|:---|:---|:---|
| Property Transferred | Cost Amount | Elected Amount | Fair Market Value |
| Carbon Fibre Technology | C$ | C$ | C$450,000.00 |

---

Consideration Received:

---

| | | | |
|:---|:---|:---|:---|
| Number and Class of<br> Consideration Shares | Cost Amount | Paid Up Capital | Fair Market Value |
| &nbsp;&nbsp;26,000,000 class A voting common shares in the authorized capital of the<br> Acquiror | C$ | C$ | C$450,000.00 |

---

## Exhibit 10.3

**Exhibit 10.3**

**TECHNOLOGY ACQUISITION AGREEMENT** 

This Technology Acquisition Agreement (**Agreement**) dated effective as of February 5, 2021 (the **Effective Date**) is by and between AdvEn Industries Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (the **Corporation**) and AdvEn Bitumen Innovation Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (**Acquiror**) (collectively, the **Parties** or each individually, a **Party**).

**WHEREAS**:

A. The Corporation has developed, and is the owner of, the Activated Carbon Technology, the Carbon Fibre
Technology, and the Solid Bitumen Technology.

B. The Acquiror desires to acquire the exclusive right to use and exploit the Solid Bitumen Technology in
the Territory and develop, own, and exploit all Improvements related thereto, pursuant to and in accordance with the terms of this Agreement.

C. The Corporation has granted Tangold Inc. (**Tangold**) the exclusive right to use and exploit the Carbon
Fibre Technology in the Territory and develop, own, and exploit all improvements related thereto.

**NOW THEREFORE**, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. <u>Definitions</u>. For purposes of this Agreement, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Acquiror** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Activated Carbon Technology** means the Patents and Know-How, each for use in the field of activated
carbons and activated carbon feedstock, including carbonized solid bitumen using solid bitumen as feedstock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Agreement** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Assignee** has the meaning set forth in <u>Section 13.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Assignor** has the meaning set forth in <u>Section 13.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Bankruptcy Event** has the meaning set forth in <u>Section 12.2(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Business Day** means a day other than a Saturday, Sunday, or other day on which commercial banks
in Edmonton, Alberta are authorized or required by Law to be closed for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Carbon Fibre Technology** means the Patents and Know-How, each for use in the field of carbon fibre
and carbon fibre feedstock, including solid bitumen as feedstock for any use, with a melting point greater than or equal to 150 degrees
Celsius.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Confidential Information** means all non-public, confidential, or proprietary information of the
Disclosing Party, whether in oral, written, electronic, or other form or media, including information that is marked, designated, or otherwise
identified as "confidential" and any information that, due to the nature of its subject matter or circumstances surrounding
its disclosure, would reasonably be understood to be confidential or proprietary. Confidential Information does not include information
that the Receiving Party can demonstrate by documentation: (i) was already known to the Receiving Party without restriction on use or
disclosure prior to receipt of such information directly or indirectly from or on behalf of the Disclosing Party; (ii) was or is independently
developed by the Receiving Party without reference to or use of any Confidential Information; (iii) was or becomes generally known by
the public other than by breach of this Agreement by, or other wrongful act of, the Receiving Party; or (vi) was received by the Receiving
Party from a third party who was not, at the time of receipt, under any obligation to the Disclosing Party or any other Person to maintain
the confidentiality of such information. For the avoidance of doubt and subject to above exclusions (i)-(iv), Confidential Information
includes the Patents and the Know-How.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Consideration Shares** means 26,000,000 class A voting common shares in the authorized capital issued
at a deemed issue price of C$0.0277 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Cost Amount**, subject to any adjustments to be made pursuant to subsection 85(1) of the ITA, has
the same meaning as that term is defined in subsection 248(1) of the ITA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Corporation** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Disclosing Party** has the meaning set forth in <u>Section 8.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **Effective Date** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **Elected Amount** means the amount jointly elected by the Parties pursuant to <u>Section 4.4.</u> below and as set out in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Fair Market Value** means C$720,000.00, being the fair market value of the Solid Bitumen Technology
as at the Effective Date, determined by an independent Chartered Business Valuator in good standing with The Canadian Institute of Chartered
Business Valuators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **Governmental Authority** means any federal, state, national, supranational, local, or other government,
whether domestic or foreign, including any subdivision, department, agency, instrumentality, authority (including any regulatory authority),
commission, board, or bureau thereof, or any court, tribunal, or arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **Improvement** means any modification of or improvement or enhancement relating to the Solid Bitumen
Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **Indemnitee** has the meaning set forth in <u>Section 11.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **Independent Action** has the meaning set forth in <u>Section 5.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **Infringement** has the meaning set forth in <u>Section 6.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **ITA** means the *Income Tax ITA* (Canada).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **Know-How** means any and all technical information, trade secrets, formulas, prototypes, specifications,
directions, instructions, test protocols, procedures, results, studies, analyses, raw material sources, data, manufacturing data, formulation
or production technology, conceptions, ideas, innovations, discoveries, inventions, processes, methods, materials, machines, devices,
formulae, equipment, enhancements, modifications, technological developments, techniques, systems, tools, designs, drawings, plans, software,
documentation, data, programs, and other knowledge, information, skills, and materials owned by Corporation and useful in the manufacture,
sale, or use of the Products or Process, existing as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **Law** means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common
law, judgment, decree, other requirement or rule of law of any federal, state, local, or foreign government or political subdivision thereof,
or any arbitrator, court, or tribunal of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **Losses** means all losses, damages, liabilities, costs, and expenses, including reasonable attorneys'
fees and other litigation costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **Optionee** has the meaning set forth in <u>Section 12.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **Party** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **Patent** means any of: (a) the Priority Patent Application; (b) any patent application that claims
priority to the patent application identified in (a); (c) any patents issuing on any patent application identified in (a) or (b), including
any reissues, renewals, reexaminations, substitutions or extensions thereof; (d) any foreign counterpart (including Patent Cooperation
Treaty application(s)) of any patent or patent application identified in (a), (b) or (c); and (e) any supplementary protection certificates,
any other patent term extensions and exclusivity periods and the like of any patents and patent applications identified in (a) through
(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **Person** means an individual, corporation, partnership, joint venture, limited liability company,
governmental authority, unincorporated organization, trust, association, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **Process** means any process or part thereof the use, practice, sale, offer for sale, of which would
constitute, but for the rights acquired by the Acquiror pursuant to and in accordance with this Agreement, an infringement of any Valid
Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **Products** means any service or product, or part thereof the manufacture, use, sale, offer for sale,
or importation of which would constitute, but for the rights acquired by the Acquiror pursuant to and in accordance with this Agreement,
an infringement of any Valid Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **Priority Patent Application** means
U.S. Provisional Patent Application No. 63/092,912.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **Prosecution Action** has the meaning set forth in <u>Section 5.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) **Receiving Party** has the meaning set forth in <u>Section 8.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Representatives** means a Party's employees, officers, directors, consultants, and legal advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) **Sell-Off Period** has the meaning set forth in <u>Section 12.4</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) **Solid Bitumen Technology** means the Patents and Know-How, each for use in the field of solid bitumen,
including as feedstock for any use, with a melting point less than 150 degrees Celsius, but specifically excluding use in the respective
fields of the Activated Carbon Technology and the Carbon Fibre Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) **Tangold** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) **Tangold Entity** means Tangold or its permitted successor or Assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) **Term** has the meaning set forth in <u>Section 12.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) **Territory** means worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) **Third-party Action** has the meaning set forth in <u>Section 11.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) **Valid Claim** means, on a country-by-country basis, a claim of a pending application, or an unexpired
issued or granted patent of the Patents, as long as the claim has not been admitted by Corporation or otherwise caused to be invalid or
unenforceable through reissue, disclaimer, or otherwise, or held invalid or unenforceable by a Governmental Authority of competent jurisdiction
from whose judgment no appeal is allowed or timely taken.

2. <u>Solid Bitumen Technology</u>.

2.1 <u>Grant, Transfer, and Acquisition of Rights</u>. Subject to the terms and conditions of this Agreement,
the Corporation hereby grants, transfers, and conveys to the Acquiror, and the Acquiror hereby acquires from the Corporation, during the
Term an exclusive, sublicensable (only in accordance with <u>Section 2.3</u>), transferable (only in accordance with <u>Section 13.6</u>)
right and license to use and exploit the Solid Bitumen Technology including to make, use, offer to sell, sell, and import Products and
to practice Processes in the Territory in the field of the Solid Bitumen Technology.

2.2 <u>Restrictions on Corporation</u>. The Corporation shall neither itself nor grant others the right to
make, use, offer to sell, sell, or import Products or Practice the Processes in the field of the Solid Bitumen Technology during the Term
in in the Territory.

2.3 <u>Sublicensing</u>. The Corporation hereby grants, transfers, and conveys to the Acquiror the right to
sublicense all and any of its rights to and in respect of the Solid Bitumen Technology. The granting of any such sublicenses will be at
the Acquiror's sole and exclusive discretion and Acquiror will have the sole and exclusive power to determine the identity of any sublicensee,
the applicable fees or royalty rates, if any, and other terms and conditions of the sublicense; provided, that the Acquiror will ensure
that no sublicense may exceed the scope of rights granted to the Acquiror pursuant to and in accordance with this Agreement and each sublicensee
agrees to be bound by the applicable terms and conditions of this Agreement. The Acquiror shall enforce all sublicenses at its own cost
and shall be responsible for the acts and omissions of its sublicensees. In the event of the termination or expiration of this Agreement,
all sublicense rights will terminate effective as of the termination or expiration of this Agreement.

2.4 <u>Improvements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All right, title, and interest in any Improvement conceived, made, reduced to practice, or acquired by
the Acquiror during the Term of this Agreement, and all of the Acquiror's right, title, and interest in any patents and patent applications
claiming any such Improvements, will as between the Parties, remain the sole and exclusive property of the Acquiror, provided that the
Acquiror hereby grants to the Corporation an exclusive, worldwide, royalty-free, transferable, license, with the right to grant sublicenses,
under its right, title, and interest in such Improvements, patents, and patent applications in the fields of the Carbon Fibre Technology
and the Activated Carbon Technology. Acquiror shall disclose each Improvement to the Corporation within 30 days after it is conceived,
made, reduced to practice, or acquired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All right, title, and interest in any Improvement conceived, made, or reduced to practice, or acquired
by the Corporation during the Term of this Agreement, and all of Corporation's patents and patent applications claiming any such Improvements,
will as between the Parties, remain the sole and exclusive property of the Corporation, provided that all such Improvements, patents,
and patent applications shall be included within the scope of Solid Bitumen Technology (as a Patent in the case of patents and patent
applications or as Know-how otherwise), and subject to all of the Acquiror's rights and obligations hereunder in relation to Solid
Bitumen Technology.

2.5 <u>Transfer of Know-How</u>. Promptly after the Effective Date or within thirty days upon being conceived,
made, reduced to practice, or acquired by the Corporation, the Corporation shall deliver the Know-How to the Acquiror in such form and
media as the Acquiror may reasonably request. For the avoidance of doubt, all Know-How delivered to the Acquiror hereunder is the Corporation's
Confidential Information and subject to the confidentiality and non-disclosure obligations under <u>Section 8</u>, and the Acquiror's
use of any documentation, materials, or other information concerning the Know-How provided under this <u>Section 2.5</u> is subject to
the terms and conditions of this Agreement, including the scope of the rights granted to the Acquiror under <u>Article 2</u>. Upon the
Acquiror's reasonable request, the Corporation shall make available one or more of its technical personnel to provide the Acquiror with
reasonable technical assistance concerning the Know-How with reasonable compensation to the Acquiror for the technical personnel's
time and reasonable travel expenses.

3. <u>Payments</u>.

3.1 In consideration for the rights granted, transferred, and conveyed to the Acquiror hereunder, the Acquiror
shall pay to the Corporation on a non-refundable basis an amount equal to the Fair Market Value and by issuing the Consideration Shares
to the Corporation.

3.2 No royalties are payable by the Acquiror to the Corporation.

3.3 <u>Section 85(1) Election</u>. The Parties will jointly elect and the Corporation shall file in the prescribed
form and within the prescribed time under subsection 85(6) of the ITA and under the corresponding sections of any applicable provincial
statute electing an agreed amount with respect to the Consideration Shares (as consideration for the acquisition of the rights granted
to and acquired by the Acquiror with respect to the Solid Bitumen Technology hereunder) in accordance with <u>Schedule A</u>, which Elected
Amount shall be, pursuant to subsection 85(1) of the ITA, the Corporation's proceeds of disposition and the Acquiror's cost of the Solid
Bitumen Technology, pursuant to and in accordance with the terms of this Agreement.

3.4 <u>Price Adjustment</u>. In the event of any income tax assessment or reassessment (the **Tax Notice**)
against either the Corporation or the Acquiror with respect to the Consideration Shares (as consideration for the acquisition of the rights
granted to and acquired by the Acquiror with respect to the Solid Bitumen Technology hereunder), which adjusts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Cost Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Elected Amount; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Fair Market Value,

of the Solid Bitumen Technology, then the Party so assessed or reassessed (the **First Party**) shall immediately give notice to the other Party of the Tax Notice. At the same time the First Party shall indicate whether or not the First Party will pursue a conscientious objection to the Tax Notice. In the event that the First Party does not propose to pursue such objection to the Tax Notice, the other Party shall have 30 days from the receipt of the notice to advise the First Party of its desire to oppose the Tax Notice (the **Objecting Party**). In that event, the Objecting Party shall have full authority to conscientiously prosecute an objection on behalf of the First Party and the First Party agrees to cooperate fully in respect of such objection, including the filing of documents, attendance at meetings and doing such other acts and things as may reasonably be required by the Objecting Party.

3.5 In the event that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no Party seeks to pursue an objection to the Tax Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all appeal rights in respect of the Tax Notice have expired without appeals having been taken; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a court or tribunal having jurisdiction in the matter has decided to uphold the determination contained
in the Tax Notice or has decided that the Cost Amount or the Fair Market Value is an amount (the **Court Determined Amount**) which
is equal to neither the amount set out in the Tax Notice nor the value of the Consideration Shares and: (i) all appeal rights in respect
of such decision have been exhausted or have expired without appeals having been taken; or (ii) the Parties agree with such decision,

then the Cost Amount, the Elected Amount, or the Fair Market Value, as the case may be, of the relevant property or properties set forth in the Tax Notice or, where the Court Determined Amount is different than the amount set forth in the Tax Notice, the Court Determined Amount, shall constitute the Cost Amount, the Elected Amount, or the Fair Market Value of the Solid Bitumen Technology for the purposes of this Agreement, so as to effect an automatic adjustment in the Elected Amount or the value of the Consideration Shares, if necessary and appropriate. If relevant, the consideration as represented by the Consideration Shares shall be adjusted in accordance with the Articles of Incorporation of the Acquiror as registered with the Registrar of Corporations in the Province of Alberta.

3.6 Should an objection to the Tax Notice be initially pursued and the Objecting Party wishes to abandon further
pursuit by terminating any negotiations, by accepting a settlement proposal with the Canada Revenue Agency, or by not appealing a judgment
of a court of competent jurisdiction, or by any other means whatever, then such Objecting Party shall give full details and immediate
notice (**Notice to Desist**) to the other Party. If within 20 days of receipt of the Notice to Desist, the other Party fails to deliver
a notice of its desire to continue such objection (**Notice to Continue**), then the Objecting Party shall be entitled to consummate
the settlement proposal with the Canada Revenue Agency, adopt a judgment, or abandon any further pursuit of the matter. In that event,
the Cost Amount, the Elected Amount, or the Fair Market Value as thus determined shall be the Elected Amount (if necessary and appropriate)
or amount of the Consideration Shares. The value of the Consideration Shares shall be adjusted as required. Should a Notice to Continue
be delivered as aforesaid by the other Party, the provisions of this paragraph shall apply *mutatis mutandis* thereto.

3.7 It is the intention of the Parties that the transaction contemplated by this Agreement take place on a
tax-deferred basis, such that no capital gains shall be realized by the Corporation on its disposition of the Solid Bitumen Technology,
and this <u>Article 3</u> shall be interpreted on such basis. For greater certainty, unless otherwise agreed between the Parties, where
the application of this <u>Article 3</u> results in an adjustment to the Cost Amount of the Solid Bitumen Technology, the Elected Amount
shall, if reasonable or appropriate, be adjusted on a retroactive basis to be equal to such amount as would give effect to the joint intention
expressed in this <u>Article 3</u>, and either the Corporation and the Acquiror may make such filings as may be necessary to give effect
to such adjustment to the Elected Amount.

4. <u>Records and Audit</u>.

4.1 Acquiror is not required to maintain record(s) for the benefit of the Corporation.

4.2 Acquiror is not required to conduct an audit, or permit an auditor to audit, for the benefit of the Corporation.

5. <u>Patent Prosecution and Maintenance</u>.

5.1 <u>Patent Prosecution and Maintenance</u>. Subject to <u>Section 5.2</u>, for each patent application
and patent included within the Patents, the Corporation shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prepare, file, prosecute, and maintain all applications and registrations for the Patents (each a **Prosecution Action**), including without limitation selection of filing jurisdictions and any amendment, using reasonable care and skill and using
counsel reasonably acceptable to Acquiror;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall solicit and consider in good faith all input including request of Acquiror in making decisions relating
to Prosecution Actions, but is permitted to give equal weight to the input of the Acquiror, input of the Tangold Entity, and Corporation's
own input;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) keep the Acquiror informed of the filing and progress of all aspects of the prosecution of such patent
application and the issuance of patents from any such patent application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) provide the Acquiror with a copy of such patent application, amendments thereto, and other related correspondence
to and from patent offices, and, to the extent reasonably practicable, permit the Acquiror an opportunity to offer its input thereon before
making a submission to a patent office, and the Corporation shall consider such input in good faith pursuant to <u>Section 5.1(b)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) consult with the Acquiror concerning any decisions that could affect the scope or enforcement of any issued
claims or the potential abandonment of such patent application or patent and permit the Acquiror an opportunity to offer its input before
implementing any such decisions, and the Corporation shall consider such input in good faith pursuant to <u>Section 5.1(b)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) notify the Acquiror in writing of any changes in the scope or status of such patent or patent application.

5.2 <u>Independent Action</u>. In the event that the Corporation declines to take a Prosecution Action, as
requested by the Acquiror:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Corporation shall notify the Acquiror in writing, to the extent possible, at least 30 days in advance
of the due date of the declined Prosecution Action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Acquiror has the right to require the Corporation to take the declined Prosecution Action provided
that the Acquiror agree to bears all costs for the Prosecution Action (the **Independent Action**). The Corporation shall take the
Independent Action at the Acquiror's request, to the extent reasonable and to the extent the Independent Action does not prejudice
the rights of the Corporation.

5.3 <u>Costs</u>. Subject to <u>Section 5.2</u>, the Parties agree that all reasonable expenses incurred by
the Corporation after the Effective Date for Prosecution Actions will be shared in equal parts by the Corporation, the Acquiror, and the
Tangold Entity, with the exception of expenses for Independent Actions pursuant to <u>Section 5.2</u> which shall be born solely by the
Acquiror. The Acquiror shall reimburse the Corporation for its portion of the foregoing expenses within 30 days receiving from the Corporation
documentation evidencing such expenses.

6. <u>Enforcement of Intellectual Property Rights</u>.

6.1 <u>Notice of Infringement or Third-Party Claims</u>. If either Party becomes aware of any suspected infringement
of any intellectual property rights included in the Solid Bitumen Technology by a third party in the Territory (an **Infringement**),
such Party shall promptly notify the other Party and provide it with all details of such Infringement, as applicable, that are known by
such Party.

6.2 <u>Right to Bring Action</u>. The Acquiror shall have the first right, but not the obligation, to take
action in the prosecution, prevention, or termination of any Infringement. If the Acquiror does not take action in the prosecution, prevention,
or termination of any Infringement pursuant to this <u>Section 6.2</u>, and has not commenced negotiations with the infringer for the
discontinuance of said Infringement, within 90 days after receipt of notice to the Acquiror by the Corporation of the existence of an
Infringement, the Corporation may elect to do so.

6.3 <u>Cooperation, Recovery, and Settlement</u>. In the event a Party undertakes the enforcement of any intellectual
property rights in accordance with <u>Section 6.2</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the other Party shall provide all reasonable cooperation and assistance, including providing access to
relevant documents and other evidence, making its employees available at reasonable business hours, and being joined as a party to such
action as necessary to establish standing, provided that such Party reimburses the other Party promptly for any costs and expenses incurred
in connection with providing such assistance, including reasonable attorneys' fees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such Party may settle any such suit, action, or other proceeding, whether by consent order, settlement,
or other voluntary final disposition, without the prior written approval of the other Party, provided that the Corporation shall not settle
any such suit, action, or other proceeding in a manner that adversely affects the rights of the Acquiror concerning the Solid Bitumen
Technology without the Acquiror's prior written consent.

6.4 <u>Recovery</u>. Any recovery, damages, or settlement funds derived from enforcement of intellectual property
rights in accordance with <u>Section 6.2</u> will be retained by the enforcing Party.

6.5 <u>Invalidity or Unenforceability</u>. If any suit, action, or other proceeding alleging invalidity or
unenforceability of any patent claim with the Patents is brought against the Acquiror or any sublicensee, the Acquiror shall promptly
notify the Corporation in writing and the Corporation, at its option, will have the right, within 30 days of receiving such notice, to
take over the sole defense of the invalidity and/or unenforceability aspect of the suit, action, or other proceeding at its own expense.

7. <u>Compliance with Laws</u>.

7.1 <u>Recordation of Agreement</u>. If recordation of this Agreement or any part of it with a national or
supranational Governmental Authority is necessary for the Acquiror to fully enjoy the rights, privileges, and benefits of this Agreement,
then the Acquiror may, at its own expense, record this Agreement or all such parts of this Agreement and information concerning the rights
granted to the Acquiror hereunder with each such appropriate national or supranational Governmental Authority.

8. <u>Confidentiality</u>.

8.1 <u>Confidentiality Obligations</u>. Each Party (the **Receiving Party**) acknowledges that in connection
with this Agreement it will gain access to Confidential Information of the other Party (the **Disclosing Party**). As a condition to
being furnished with Confidential Information, the Receiving Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not use the Disclosing Party's Confidential Information other than as strictly necessary to exercise its
rights and perform its obligations under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain the Disclosing Party's Confidential Information in strict confidence and, subject to <u>Section 8.2</u>, not disclose the Disclosing Party's Confidential Information without the Disclosing Party's prior written consent, provided,
however, the Receiving Party may disclose the Confidential Information to its Representatives who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have a need to know the Confidential Information for purposes of the Receiving Party's performance,
or exercise of its rights with respect to such Confidential Information, under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have been apprised of this restriction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) are themselves bound by written nondisclosure agreements at least as restrictive as those set out in this <u>Article 8</u>, provided further that the Receiving Party will be responsible for ensuring its Representatives' compliance with, and
will be liable for any breach by its Representatives of, this <u>Article 8</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use reasonable care, at least as protective as the efforts it uses with respect to its own confidential information,
to safeguard the Disclosing Party's Confidential Information from use or disclosure other than as permitted hereby.

8.2 <u>Exceptions</u>. If the Receiving Party becomes legally compelled to disclose any Confidential Information,
the Receiving Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) provide prompt written notice to the Disclosing Party so the Disclosing Party may seek a protective order
or other appropriate remedy or waive its rights under <u>Article 8</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) disclose only the portion of Confidential Information it is legally required to furnish.

If a protective order or other remedy is not obtained, or the Disclosing Party waives compliance under <u>Article 8</u>, the Receiving Party shall, at the Disclosing Party's expense, use reasonable efforts to obtain assurance that confidential treatment will be afforded the Confidential Information.

9. <u>Representations and Warranties</u>.

9.1 <u>Mutual Representations and Warranties</u>. Each Party represents and warrants to the other Party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is duly organized, validly existing, and in good standing as a corporation or other entity as represented
herein under the laws and regulations of its jurisdiction of incorporation, organization, or chartering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has, and throughout the Term will retain, the full right, power, and authority to enter into this Agreement
and to perform its obligations hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the execution of this Agreement by its representative whose signature is set forth at the end hereof has
been duly authorized by all necessary corporate action of the Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) when executed and delivered by such Party, this Agreement will constitute the legal, valid, and binding
obligation of that Party, enforceable against that Party in accordance with its terms.

9.2 <u>Corporation's Representations and Warranties</u>. Corporation represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it is the sole and exclusive owners of the entire right, title, and interest in and to the Solid Bitumen
Technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has, and throughout the Term will retain, the right to grant, transfer and convey the rights granted,
transferred, and conveyed to the Acquiror hereunder, and it has not granted, and is not under any obligation to grant, to any third party
any license, lien, option, encumbrance, or other contingent or non-contingent right, title, or interest in or to the Solid Bitumen Technology;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) there is no settled, pending, or to its knowledge threatened litigation, claim, or proceeding alleging
that any Patent is invalid or unenforceable, and it has no knowledge after reasonable investigation of any factual, legal, or other reasonable
basis for any such litigation, claim, or proceeding.

10. <u>Exclusion of Consequential and Other Indirect Damages</u>. TO THE FULLEST EXTENT PERMITTED BY LAW, NEITHER
THE CORPORATION NOR THE ACQUIROR WILL BE LIABLE TO THE OTHER OR ANY OTHER PERSON FOR ANY INJURY TO OR LOSS OF GOODWILL, REPUTATION, BUSINESS
PRODUCTION, REVENUES, PROFITS, ANTICIPATED PROFITS, CONTRACTS, OR OPPORTUNITIES (REGARDLESS OF HOW THESE ARE CLASSIFIED AS DAMAGES), OR
FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, PUNITIVE, OR ENHANCED DAMAGES, WHETHER ARISING OUT OF BREACH OF CONTRACT,
TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCT LIABILITY, OR OTHERWISE (INCLUDING THE ENTRY INTO, PERFORMANCE, OR BREACH OF THIS
AGREEMENT), REGARDLESS OF WHETHER SUCH LOSS OR DAMAGE WAS FORESEEABLE AND THE PARTY AGAINST WHOM LIABILITY
IS CLAIMED HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED REMEDY OF ITS ESSENTIAL
PURPOSE.

11. <u>Indemnification</u>.

11.1 <u>Indemnification</u>. Each Party (the **Indemnitor**) shall indemnify, defend, and hold harmless
the other Party and its officers, directors, employees, agents, successors, and assigns (each, an **Indemnitee**) against all Losses
arising out of or resulting from any third-party claim, suit, action, or proceeding (each a **Third-Party Action**) related to, arising
out of, or resulting from Indemnitor's breach of any representation, warranty, covenant, or obligation under this Agreement.

11.2 <u>Acquiror's Indemnification</u>. The Acquiror shall indemnify defend, and hold harmless the Corporation
and its officers, directors, employees, agents, successors, and assigns against all Losses arising out of or resulting from any Third-party
Action related to, arising out of, or resulting from the Acquiror's use, sale, transfer, or other disposition by the Acquiror or
its sublicensee of the Products or the Process.

11.3 <u>Indemnification Procedure</u>. An Indemnitee shall promptly notify the Indemnitor in writing of any
Third-party Action and cooperate with Indemnitor at the Indemnitor's sole cost and expense. The Indemnitor shall immediately take control
of the defense and investigation of the Third-party Action and shall employ counsel reasonably acceptable to Indemnitee to handle and
defend the same, at the Indemnitor's sole cost and expense. The Indemnitor shall not settle any Third-party Action in a manner that adversely
affects the rights of any Indemnitee without the Indemnitee's prior written consent. The Indemnitee's failure to perform any obligations
under this <u>Section 11.3</u> shall not relieve the Indemnitor of its obligation under this <u>Section 11.3</u> except to the extent
the Indemnitor can demonstrate that it has been materially prejudiced as a result of the failure. The Indemnitee may participate in and
observe the proceedings at its own cost and expense with counsel of its own choosing.

12. <u>Term and Termination</u>.

12.1 <u>Term</u>. This Agreement is effective as of the Effective Date and, unless terminated earlier in accordance
with <u>Section 12.2</u>, will continue in full force and effect on a Product-by-Product and countryby-country basis until the expiration
of the last to expire Valid Claim of a Patent in such country (the **Term**).

12.2 <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Acquiror may terminate this Agreement at any time without cause, and without incurring any additional
obligation, liability, or penalty, by providing at least 60 days' prior written notice to the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Either Party may terminate this Agreement, effective immediately, if the other Party: (i) is dissolved
or liquidated or takes any corporate action for such purpose; (ii) becomes insolvent or is generally unable to pay, or fails to pay, its
debts as they become due; (iii) files or has filed against it a petition for voluntary or involuntary bankruptcy or otherwise becomes
subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency Law; (iv) makes or seeks
to make a general assignment for the benefit of its creditors; or (v) applies for or has a receiver, trustee, custodian, or similar agent
appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business (each
a **Bankruptcy Event**).

12.3 <u>Option to Purchase on Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of a Bankruptcy Event of the Corporation and termination of this Agreement by the Acquiror
pursuant to <u>Section 12.2(c)</u>, the Acquiror shall have an option to purchase ownership of the Patents and Know-How from the Corporation
at a fair market value determined by a valuator reasonably agreed upon by the Corporation and the Acquiror, provided that the Acquiror
acknowledges that the Corporation has granted or may grant a similar option to Tangold, and in the event that both the Acquiror and the
Tangold Entity (each, an **Optionee**) exercise their respective options to purchase the Patents and Know-How from Corporation then
the Corporation shall have the right to sell the Patents and Know-How to the Optionee that makes an offer on the most favourable terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Acquiror acquires the Patents and Know-How pursuant to <u>Section 12.3(a)</u>, then the Acquiror
agrees to be bound by applicable terms and conditions of any licenses to and under the Patents and Know-How to any third parties including
the Tangold Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Acquiror acquires the Patents and Know-How pursuant to <u>Section 12.3(a)</u>, at the request of
the Corporation, the Acquiror shall negotiate with Corporation in good faith to grant a license on commercially reasonable terms in and
to the Activated Carbon Technology for use by the Corporation during and after the Bankruptcy Event.

12.4 <u>Sell-Off Period</u>. For a period of 90 days after the effective date of the termination of this Agreement
(the **Sell-Off Period**), the Acquiror and its sublicensees, will have the right to sell or otherwise dispose of all existing Products
in its possession, custody, or control and to complete the manufacture of and sell or otherwise dispose of all Products in the course
of manufacture as of the effective date of termination, in each case, in accordance with the applicable terms and conditions of this Agreement.

12.5 <u>Survival</u>. The rights and obligations of the Parties
set forth in this <u>Section 12.5</u> and <u>Section 1</u> (Definitions), <u>Section 8</u> (Confidentiality), <u>Section 9</u> (Representations
and Warranties), <u>Section 10</u> (Exclusion of Consequential and Other Indirect Damages), <u>Section 11</u> (Indemnification), <u>Section 12.3</u> (Option to Purchase on Termination), <u>Section 12.4</u> (Sell-off Period) and <u>Section 13</u> (Miscellaneous), and any right,
obligation, or required performance of the Parties in this Agreement which, by its express terms or nature and context is intended to
survive termination or expiration of this Agreement, will survive any such termination or expiration.

13. <u>Miscellaneous</u>.

13.1 <u>Further Assurances</u>. Each Party shall, upon the reasonable request, and at the sole cost and expense,
of the other Party, execute such documents and take such further actions as may be necessary to give full effect to the terms of this
Agreement.

13.2 <u>Independent Contractors</u>. The relationship between the Parties is that of independent contractors.
Nothing contained in this Agreement creates any agency, partnership, joint venture, or other form of joint enterprise, employment, or
fiduciary relationship between the Parties, and neither Party has authority to contract for or bind the other Party in any manner whatsoever.

13.3 <u>No Public Statements</u>. Neither Party may issue or release any announcement, statement, press release,
or other publicity or marketing materials relating to this Agreement or, unless expressly permitted under this Agreement, otherwise use
the other Party's trademarks, service marks, trade names, logos, domain names, or other indicia of source, association, or sponsorship,
in each case, without the prior written consent of the other Party.

13.4 <u>Notices</u>. All notices, requests, consents, claims, demands, waivers, and other communications (other than routine
communications having no legal effect) must be in writing and sent to the respective Party at the addresses indicated below (or such other
address for a Party as may be specified in a notice given in accordance with this <u>Section 13.4</u>):

If to Corporation: 9407-3 20 Avenue NW

Edmonton, Alberta

T6N 1E5

Telephone: +1 (780)-395-7919

E-mail: yanguang.yuan@adven-industries.com

Attention: Yanguang Yuan

If to Acquiror: 1400, 350 – 7 Avenue SW

Calgary, Alberta

T2P 3N9

Telephone: +1 (780)-395-7919

E-mail: yanguang.yuan@adven-industries.com

Attention: Yanguang Yuan

Notices sent in accordance with this <u>Section 13.4</u> will be deemed effective: (a) when received or delivered by hand (with written confirmation of receipt); (b) when received, if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail (in each case, with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the fifth Business Day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.

13.5 <u>Entire Agreement</u>. This Agreement, together with all
Schedules and any other documents incorporated herein by reference, constitutes the sole and entire agreement of the Parties with respect
to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and
oral, with respect to such subject matter. In the event of any conflict between the terms and provisions of this Agreement and those
of any Schedule or other document, the following order of precedence will govern: (a) first, this Agreement, excluding its Schedules;
and (b) second, the Schedules to this Agreement as of the Effective Date.

13.6 <u>Assignment</u>. Each Party (the **Assignor**) may freely
assign or otherwise transfer all of its rights, or delegate or otherwise transfer all of its obligations or performance, under this Agreement
to a third party (the **Assignee**) without the other Party's consent provided the Assignee agrees to all the covenants and
obligations of this Agreement and takes the place of the Assignor with respect to this Agreement. This Agreement is binding upon and
inures to the benefit of the Parties hereto and their respective permitted successors and assigns. No delegation or other transfer will
relieve a Party of any of its obligations or performance under this Agreement. Any purported assignment, delegation, or transfer in violation
of this <u>Section 13.6</u> is void.

13.7 <u>No Third-Party Beneficiaries</u>. This Agreement is for
the sole benefit of the Parties and their respective successors and permitted assigns and nothing herein, express or implied, is intended
to or will confer upon any other Person any legal or equitable right, benefit, or remedy of any nature whatsoever, under, or by reason
of this Agreement.

13.8 <u>Amendment; Modification; Waiver</u>. This Agreement may
only be amended, modified, or supplemented by an agreement in writing signed by each Party. No waiver by any Party of any of the provisions
hereof will be effective unless explicitly set forth in writing and signed by the waiving Party. Except as otherwise set forth in this
Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power, or privilege arising from this Agreement will operate
or be construed as a waiver thereof; nor will any single or partial exercise of any right, remedy, power, or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.

13.9 <u>Severability</u>. If any term or provision of this Agreement
is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability will not affect any other
term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon a determination
that any term or other provision is invalid, illegal, or unenforceable, the Parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions
contemplated hereby be consummated as originally contemplated to the greatest extent possible.

13.10 <u>Governing Law; Submission to Jurisdiction</u>. This Agreement
shall be governed by and construed in accordance with the laws of the Province of Alberta and the laws of Canada applicable therein,
without regard to conflict of law principles. Any claim or dispute arising from or under this Agreement must be brought in the City of
Edmonton, Alberta and each party attorns to the jurisdiction of the courts of Alberta with respect to any claim or dispute arising from
this Agreement.

13.11 <u>Counterparts</u>. This Agreement may be executed in one
or more counterparts, including counterparts executed by way of electronic signature, each of which so executed shall constitute an original
and all of which together shall constitute one and the same agreement. The Parties shall be entitled to rely on delivery of a copy delivered
by facsimile or other means of electronic transmission (including by way of DocuSign or other similar application) of the executed Agreement
and such electronically transmitted copy shall be legally effective to create a valid and binding agreement.

[remainder of page intentionally left blank]

**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed as of the date first written above by their respective duly authorized representatives.

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| Per: | /s/ Yanguang Yuan |
| Name: | Yanguang Yuan |
| Title: | Director |
| **ADVEN BITUMEN INNOVATION INC.** | **ADVEN BITUMEN INNOVATION INC.** |
| Per: | /s/ Yanguang Yuan |
| Name: | Yanguang Yuan |
| Title: | Director |

---

**<u>SCHEDULE A</u>**

Property Transferred:

---

| | | | |
|:---|:---|:---|:---|
| Property Transferred | Cost Amount | Elected Amount | Fair Market Value |
| Solid Bitumen Technology | C$ | C$ | C$720,000.00 |

---

Consideration Received:

---

| | | | |
|:---|:---|:---|:---|
| Number and Class of<br> Consideration Shares | Cost Amount | Paid Up Capital | Fair Market Value |
| 26,000,000 class A voting common shares in the authorized capital of the<br> Acquiror | C$ | C$ | C$720,000.00 |

---

## Exhibit 10.4

**Exhibit 10.4**

**<u>LEASE AGREEMENT</u>**

**THIS LEASE AGREEMENT** is made as of March 30, 2021 (the **"Lease")**

**BETWEEN:**

**MONARCH EQUITIES INC.**

(hereinafter called the **"Landlord")**

#1622, 10303 Jasper Avenue NW

Edmonton, AB T5J 3N6

Tel: 780.421.4000

Email: <u>info@vorkrealtv.ca</u>

-and-

**ADVEN INDUSTRIES INC.** 

**o/a "AdvEn Industries"**

(hereinafter called the **"Tenant")**

Unit 3, 9407 20 Ave NW,

Edmonton AB T6N1E5

Telephone: 780.395.7919

Email: <u>info@AdvEn-lndustries.com</u>

**IN CONSIDERATION** of the rent and the covenants herein contained to be performed by the Landlord and the Tenant, the parties agree as follows:

**1.**  **<u>LEASE</u>** 

The Tenant leases from the Landlord and the Landlord leases to the Tenant the Leased Premises (as defined in Section 2 below), for the Term (as defined in Section 3 below) and upon the covenants, provisions, and conditions of this Lease.

**2.**  **<u>LEASED PREMISES</u>** 

The Landlord is the registered owner of those lands legally described in Schedule "A" attached hereto (the **"Lands"),** and municipally known as Unit 300, 3615 - 11 Street, Nisku, AB T9E 1C6 and comprising: (i) Thirty-Six Thousand Eight Hundred (36,800) square feet, more or less **(the "Leased Premises");** plus (ii) a fenced yard area of Five Thousand (5,000) square feet, more or less **(the "Yard Area"),** hereinafter (collectively, **the "Floor Area of the Leased Premises"),** together with the building(s) constructed on the Lands (the **"Building").** The Lands and the Building and all other improvements upon the Lands are collectively referred to herein as the **"Property".**

**3.**  **<u>TERM</u>** 

To have and to hold the Leased Premises for a term (the **"Term")** of Ten (10) years from June 1, 2021 (the **"Commencement Date")** to May 31, 2031 (the **"Expiry Date").**

**4.**  **<u>BASIC RENT</u>** 

The Tenant shall pay without any variation, set-off, or deduction whatsoever, payable in advance on the first day of each month during the Term as follows:

**<u>For the Leased Premises based upon 36.800 square feet:</u>**

For the period from June 1, 2021 to and including May 31, 2026, the annual sum of Three Hundred Seventy Thousand Six Hundred dollars ($370,600.00), payable in equal, consecutive monthly instalments of Thirty Thousand Eight Hundred Eighty-Three dollars and Thirty-Three cents ($30,883.33) per month, based upon an annual rate of Ten dollars and Seven cents ($10.07) per square foot of the Floor Area of the Leased Premises (rounding excepted).

For the period from June 1, 2026 to and including May 31, 2031, the annual sum of Three Hundred Ninety-Eight Thousand One Hundred Seventy-Six dollars ($398,176.00), payable in equal, consecutive monthly instalments of Thirty-Three Thousand One Hundred Eighty-One dollars and Thirty-Three cents ($33,181.33) per month, based upon an annual rate of Ten dollars and Eighty-Two cents ($10.82) per square foot of the Floor Area of the Leased Premises (rounding excepted) (collectively, **the "Leased Premises Basic Rent").**

**<u>For the Yard Area based upon 5,000 square feet:</u>**

For the period from June 1, 2021 to and including May 31, 2026, the annual sum of Five Thousand Five Hundred dollars ($5,500.00), payable in equal, consecutive monthly instalments of Four Hundred Fifty-Eight dollars and Thirty-Three cents ($458.33) per month, based upon an annual rate of One dollar and Ten cents ($1.10) per square foot of the Floor Area of the Leased Premises.

For the period from June 1, 2026 to and including May 31, 2031, the annual sum of Six Thousand dollars ($6,000.00), payable in equal, consecutive monthly instalments of Five Hundred dollars ($500.00) per month, based upon an annual rate of One dollar and Twenty cents ($1.20) per square foot of the Floor Area of the Leased Premises (collectively, the **"Yard Area Basic Rent").**

The Leased Premises Basic Rent and Yard Area Basic Rent are hereinafter (collectively, the **"Basic Rent").** All amounts are exclusive of GST and are subject to rounding for calculation purposes. For any period of less than one (1) month, the Basic Rent payable for that period shall be calculated on a *per diem* basis at a rate equal to 1/365 of the Basic Rent payable for the year.

**5.**  **<u>ADDITIONAL RENT/PROPORTIONATE SHARE</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.1 For the purposes of this Lease **"Proportionate Share"** shall mean the fraction, the numerator of which is the Floor Area of the Leased Premises and the denominator of which is the Floor Area of all leasable space of the Building (measured in the same manner as Floor Area of the Leased Premises) to which any particular expenditure applies. The Tenant shall pay, without any variation, set-off, or deduction whatsoever, its Proportionate Share of all costs, charges, and expenses of or relating to the maintenance, repair, replacement, operation, and management of the Property (collectively, the **"Operating Costs").** Operating Costs include, without duplication, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Tenant's Proportionate Share of all real property, local improvement and school taxes, rates,
 and charges, charged, levied, or rated by any competent authority in respect of the Property
 and the cost of all appeals against increased assessments for the purpose of such taxes,
 rates, and charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Tenant's Proportionate Share of all costs, charges and expenses of owning, maintaining, operating,
 repairing, replacing, administering, supervising, managing, and insuring (including liability
 and loss of rental insurance and all deductibles payable by the Landlord) the Property including
 without limitation, maintenance, cleaning, operation, and replacement of the heating, ventilating
 and air conditioning equipment, and the cost of maintenance, repairs or replacements made
 by the Landlord to the Leased Premises (including, without limitation, wiring, piping, lighting
 and plumbing fixtures, operating equipment, sprinkler, and heating, ventilation, and air
 conditioning systems), excluding (i) repairs and replacements to the extent the cost is recovered
 by the Landlord pursuant to any construction warranties; and (ii) replacements of a capital
 nature as determined by generally accepted accounting principles; and (iii) structural repairs.
 For the purposes of this Lease, "structural repairs" shall only include repairs
 to the structural elements of the roof (excluding the roof membrane), perimeter load bearing
 walls and foundations of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Tenant's Proportionate Share of the cost of gas, oil, power, electricity, water, sewer, communications
 and any other utilities and services which are not separately metered, together with the
 direct cost of administering such utility services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 Tenant's Proportionate Share of the cost of cleaning, snow removal, litter removal, landscaping,
 servicing, maintaining, operating, repairing, replacing, supervising, and policing the common
 areas of the Property (including the parking areas) and the costs of all supplies, labour,
 wages, and fees relating thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
 Tenant's Proportionate Share of depreciation or amortization of the costs 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) operating maintaining, replacing, modifying, and repairing the Building (including, without limitation, the exterior, roof, and equipment of the Building);

&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) providing, installing, modifying, and upgrading energy conservation equipment and systems, life safety and emergency response systems, materials and procedures and telecommunication systems and equipment;

&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) making alterations, replacements or additions to the Building intended to reduce the costs relating to operating the Building, improving the operation of the Building and the systems, facilities and equipment serving the Building, or maintaining their operation;

if such costs have not been charged fully in the fiscal year in which they are incurred, as determined in accordance with sound accounting principles or practices as applied by the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any
 value-added tax, business transfer tax, goods and services tax or similar multi-stage sales
 tax from time-to-time imposed by any governmental authority in Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) an
 administration fee equal to Fifteen percent (15%) of all Additional Rent payable by the Tenant
 pursuant to the terms of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Operating
Costs shall not include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
Landlord's debt service costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Landlord's
original cost of acquisition and construction of the Building and Leased Premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 expenditures by the Landlord that under generally accepted accounting principles are properly
 considered capital expenditures and which are not specifically referred to above under Section
 5.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
 cost resulting from any hazardous or toxic substance being found in the Building or Lands
 (excepting where caused by Tenant);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) amounts
 collectible from other tenants in the Building or costs to lease or re-lease any premises
 in the Building; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) charges
 for insurance of any other tenant or any increase in insurance rates required as a result
 of the nature of the business carried on by any other tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 The Landlord will estimate the monthly Additional Rent payable by the Tenant for the next lease year, and the Tenant shall pay the monthly estimate of the Additional Rent on the first day of each month during the lease year concurrent with the payment of Basic Rent. The Landlord will provide the Tenant a statement of the actual Operating Costs for the previous lease year (the "Statement") within One Hundred Twenty (120) consecutive days following the end of each lease year (for clarity, the Landlord has the right to adopt a fiscal lease year other than on a calendar basis). Within Thirty (30) consecutive days following delivery of the Statement, the Landlord or Tenant (as the case may be) will make the appropriate adjusting payment as required in the Statement. The Tenant may inspect the records kept by the Landlord relating to the Statement at the Landlord's business office at any reasonable time upon Ten (10) consecutive days prior written notice but only so long as such notice by the Tenant is provided to the Landlord no later than Sixty (60) consecutive days following delivery of the Statement to the Tenant. In no event shall such inspection or planned inspection permit the Tenant to delay payment of Rent or Additional Rent or any other amounts owing by the Tenant to the Landlord pursuant to the terms of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 The Tenant acknowledges and agrees that it is intended that this Lease shall be a totally carefree, absolutely net Lease for the Landlord except as specifically otherwise set-out in this Lease. Except as specifically set-out in this Lease, the Landlord shall not be responsible during the Term or any extension thereof for any costs of any nature whatsoever respecting the Leased Premises and the Tenant shall pay without any variation, deduction or set-off whatsoever, all costs relating to the Leased Premises, the Operating Costs as set-out above, and any other amounts owing by the Tenant to the Landlord pursuant to the terms of this Lease (collectively the **"Additional Rent")** and the Tenant covenants with the Landlord to make such payments as Rent. The term **"Rent"** as used in this Lease shall include all Basic Rent and Additional Rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 The Tenant shall pay to the Landlord an amount equal to any and all goods and services taxes, sales taxes, value added taxes, or any other taxes imposed on the Landlord with respect to Rent payable by the Tenant to the Landlord under this Lease. Despite any other section in this Lease, the amount payable by the Tenant under this paragraph shall be deemed not to be Rent but the Landlord shall have all of the same remedies for and rights of recovery of such amounts as it has for recovery of Rent under this Lease.

**6.**  **<u>SECURITY DEPOSIT</u>** 

Before or upon execution of this Lease, the Tenant shall provide the Landlord with a security deposit of Sixty-Seven Thousand Three Hundred Fifty-Five dollars and Forty cents ($67,355.40) (the "Security Deposit"), which Security Deposit is to be applied against: (i) the first month of Basic Rent and Additional Rent due under the Lease, which for clarity is June 2021; and (ii) the last month of Basic Rent due under the Lease. Any remaining balance is to be held, without interest, by the Landlord as security for the performance by the Tenant of its obligations under this Lease. The aforesaid sum includes goods and services tax. The Security Deposit shall be returned to the Tenant upon the expiry of this Lease, provided that the Tenant vacates the Leased Premises in good and substantial repair and condition, reasonable wear and tear excepted, by no later than the expiry date of this Lease and leaves the Leased Premises in accordance with the Tenant's obligations under the terms of this Lease, and provided that the Tenant has paid all amounts due to the Landlord under this Lease.

**7.**  **<u>PERMITTED USE</u>** 

The Leased Premises shall be used and occupied only for the purposes of research and development activities, plus the manufacturing of various carbon-based products from carbon-rich residues with low-carbon sustainable processes and for no other purposes whatsoever (the "**Permitted Use**"). The Tenant shall actively and continuously operate its business from and utilize the whole of the Leased Premises throughout the whole of the Term for such purposes in a reputable and diligent manner during the normal business hours and in accordance with rules and regulations designated or established by the Landlord from time-to-time.

**8.**  **<u>OVERHOLDING</u>** 

If the Tenant shall continue to occupy the Leased Premises after expiration of the Term, or any extension thereof, without any further written agreement, the Tenant shall be a monthly tenant only at a monthly Rent equal to One Hundred Fifty percent (150%) of the Rent payable in the last month of the Term and on all of the same terms and conditions as are herein contained excepting as to the termination date.

**9.**  **<u>INTEREST AND LATE PAYMENT FEES</u>** 

The Tenant shall pay to the Landlord interest on all monies and arrears at the rate of Twelve percent (12%) per annum calculated and compounded monthly not in advance. For any Rent that is in arrears Five (5) consecutive days or more, a fee of One Hundred dollars ($100.00) may be charged to the Tenant as Additional Rent for each month or months that the Rent is in arrears.

**10.**  **<u>DEFAULT AND REMEDIES</u>** 

In the event that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Tenant fails to pay any Rent or any other amount owing under this Lease when due, whether
 or not demanded by the Landlord; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Tenant defaults or fails to observe or perform any of its non-financial obligations under
 this Lease and the Tenant fails to rectify such Default within Fifteen (15) consecutive days
 of receipt of written notice from the Landlord with respect thereto (unless such failure
 is not reasonably capable of being rectified within such Fifteen (15) consecutive day period,
 in which case the Tenant shall be in Default if it fails to commence rectifying the Default
 within such Fifteen (15) consecutive day period or fails to thereafter diligently pursue
 rectification to completion); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Tenant makes a general assignment for the benefit of creditors, becomes bankrupt or insolvent,
 or takes the benefit of or becomes subject to any statute that may be in force relating to
 bankrupt or insolvent debtors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any
creditor seizes or takes control of the Tenant's property; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the
Tenant abandons or threatens to abandon the Leased Premises;

with subsections (a) through (e) above constituting an event of default (a "**Default**"), the Landlord, immediately and without prior notice being required, and without in any way restricting any of its other rights or remedies, may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) retain
the Security Deposit and advance rent (if any) for its own use absolutely;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) terminate
this Lease and re-enter into possession of the Leased Premises; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) claim
greater damages for breach of this Lease, in each of such cases without limiting any other rights or remedies available to the Landlord.

In addition to payment of the then current Rent, and without prejudice to the Landlord's right to claim greater damages, the Rent for the next ensuing Three (3) months shall immediately become due and payable and be deemed to be in arrears upon such Default, general assignment, bankruptcy, insolvency, or other event of Default.

All costs incurred by the Landlord in consequence of any Default by the Tenant including, without limitation, reasonable legal fees and disbursements on a solicitor and client full indemnity basis, shall be paid by the Tenant.

The Tenant waives all and every benefit that could or might have accrued to the Tenant under or by virtue of any law or statute providing for an exemption from distress. The Landlord may, at the Landlord's option, sell such goods and chattels as are seized by levy of distress, by way of private sale to the Landlord or any other party.

Distress may be levied against the goods and chattels of the Tenant wheresoever situate, and upon any other premises to which the same may have been removed, or wherever the same may be found.

All rights and remedies of the Landlord in connection with the Lease are cumulative and, where applicable, shall survive the early termination of this Lease or the expiration of the Term of this Lease.

All monies payable under this Lease shall be deemed to be Rent and collectible as such.

**11.**  **<u>LANDLORD'S INSURANCE</u>** 

The Landlord covenants and agrees to place and maintain, with respect to the Property:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Replacement
 Cost Insurance on the Building and leasehold improvements comprising the Property, subject
 to such deductions and exceptions as the Landlord may determine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Rent
 Interruption Insurance in amounts such as would be carried by a prudent owner of similar
 property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Commercial
 General Liability Insurance written on a comprehensive basis in an amount as would be carried
 by a prudent owner of similar property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 and all other insurance required by the Landlord that a prudent owner of similar property
 would carry.

Notwithstanding the foregoing, the Landlord shall not be required to acquire or maintain any insurance with respect to any loss, injury, or damage against which the Tenant is required to insure pursuant to this Lease.

Notwithstanding any contribution by the Tenant to the Landlord's insurance placed pursuant to this Lease, no insurable interest is conferred upon the Tenant under any policies carried by the Landlord.

**12.**  **<u>TENANT INSURANCE</u>** 

During the Term of this Lease, the Tenant shall acquire and maintain Commercial General Liability Insurance for not less than Five Million dollars ($5,000,000.00); All Risk Property Insurance, on a replacement cost basis on all of the Tenant's trade fixtures; Business Interruption Insurance; Tenant's Legal Liability Insurance (Broad Form); Boiler and Machinery Insurance (if applicable); Environmental Damage Insurance.

The Tenant's policies of insurance set-out above shall contain the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) provisions
 that the Landlord is protected notwithstanding any act, neglect or misrepresentation of the
 Tenant which might otherwise result in the avoidance of claim under such policies, and further
 that such policies shall not be affected or invalidated by any act, omission, or negligence
 of any third party which is not within the knowledge or control of any insured(s);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) provisions
 that such policies and the coverage evidenced thereby shall be primary and non-contributing
 with respect to any policies carried by the Landlord, that any coverage carried by the Landlord
 may only be called upon on a difference in conditions or excess coverage basis, and that
 any such Landlord coverage shall inure to the sole benefit of the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provisions
 that all of the Tenant's insurance as specified above shall provide for waiver of all
 insurer's rights of subrogation as against the Landlord and the Landlord's mortgagee
 and shall name the Landlord and the Landlord's mortgagee as an additional insured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) provisions
 that all policies of insurance carried by the Tenant shall not be cancelled or materially
 changed without the insurer or the Tenant providing the Landlord Thirty (30) consecutive
 days written notice stating when such cancellation shall become effective.

The Tenant shall further during the whole of the Term, and any extension thereof, maintain such other insurance in such amounts and in such sums as a Tenant acting reasonably shall purchase, or as the Landlord or the Landlord's mortgagees may reasonably determine from time-to-time. Evidence satisfactory to the Landlord of all such policies of insurance required to be obtained by the Tenant pursuant to this section shall be provided to the Landlord prior to the commencement of the Term, and the Tenant shall provide written evidence of the continuation of such policies not less than Ten (10) consecutive days prior to their respective expiration dates, and, in the absence of said satisfactory evidence of such coverage being provided, the Landlord may, but will not be obligated to, provide for the purchase of such insurance, the cost of which will be borne exclusively by the Tenant.

For certainty, in the event of any damage to the Building, or any part thereof, caused by the negligence or wilful act of the Tenant or anyone for whom the Tenant is at law responsible, the Tenant's legal liability insurance will be required to cover all costs relating to such damage. In the event that any such damage exceeds the value of the Tenant's legal liability insurance coverage and the Landlord's insurance is required to cover the balance, the Tenant will be responsible for paying the Landlord's insurance deductible(s) relating to such damage and any increase in the Landlord's insurance premiums relating to such damage.

**13.**  **<u>INDEMNIFICATION</u>** 

The Tenant hereby indemnifies and holds the Landlord harmless from and against any and all claims, demands, liabilities, and expenses, including reasonable legal fees on a solicitor and client full indemnity basis, arising from the Tenant's use of the Leased Premises or from any act permitted, or any omission to act, in or about the Leased Premises or the Property by the Tenant or its agents, employees, contractors, invitees or those for whom it is responsible in law, or from any breach or Default by the Tenant of this Lease, except to the extent caused by the Landlord's act or omission. In the event that any action or proceeding shall be brought against the Landlord by reason of any such claim, the Tenant shall defend the same at the Tenant's sole expense by counsel reasonably satisfactory to the Landlord.

**14.**  **<u>REPAIR</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Tenant shall at all times at its sole cost and expense keep or cause to be kept in good and
 substantial repair, order and condition, the whole of the Leased Premises, including, without
 limitation, all leasehold improvements, equipment, trade fixtures, fixtures and other facilities
 (including, without limitation, all wiring, piping, lighting and plumbing fixtures, operating
 equipment, sprinkler and heating, ventilation, and air conditioning systems) located on,
 in, under, above, or which directly serve the Leased Premises, and at the expiry or sooner
 termination of this Lease, the Tenant will peaceably surrender the Leased Premises in good
 and substantial repair and condition, reasonable wear and tear excepted. During the Term
 of this Lease the Tenant will complete and effect all necessary replacements, repairs (excepting
 structural repairs), and maintenance in relation to the Leased Premises no matter the cause
 or reason giving rise to the need to complete repairs, negligence by the Landlord or its
 agents excepted. The Tenant will permit the Landlord and its agents or employees at any time,
 and on reasonable notice, to enter the Leased Premises for purposes of repair, renovation,
 or maintenance, which are the responsibility of the Landlord or can be completed by the Landlord,
 at its option, pursuant to the terms of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Landlord determines, acting reasonably, that the Tenant is not adequately maintaining
 the Leased Premises in accordance with the provision set-out above, then the Landlord may
 give the Tenant written notice of its intention to attend to such maintenance or repairs
 as necessary, and upon completion of such maintenance or repairs, the Tenant shall pay the
 Landlord's cost incurred plus Fifteen percent (15%) of the Landlord's costs for
 overhead and supervision, all as Additional Rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All
 leasehold improvements when installed, whether installed before or after the Tenant takes
 possession of the Leased Premises, in or on the Leased Premises become the property of the
 Landlord, without compensation to the Tenant. Notwithstanding the foregoing, and notwithstanding
 that the Landlord insures the leasehold improvements, the Tenant shall be exclusively responsible
 for the repair, replacement, operation, and maintenance of the leasehold improvements. Unless
 the Landlord specifically requires the Tenant to remove, the Tenant shall not remove any
 leasehold improvements from the Leased Premises. At the end of the Term, or any extension
 thereof, the Tenant will, at its expense, remove the leasehold improvements that the Landlord
 has specifically required the Tenant to remove. The Tenant shall make good any damage caused
 to the Leased Premises or the Building by such installation or removal of the leasehold improvements,
 and the Tenant shall restore the Leased Premises to a condition of good and substantial repair.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) At
 the end of the Term, or any renewal thereof, the Tenant will, at its expense, remove all
 furniture, furnishings, equipment (the "**FFE** "), and trade fixtures and
 make good any damage caused to the Leased Premises by such installation or removal, and restore
 the Leased Premises to a condition of good and substantial repair. If the Tenant does not
 remove any leasehold improvements, as required by the Landlord, or remove its FFE, the Landlord
 may, without liability on its part, without notice to the Tenant, enter the Leased Premises,
 and remove such items at the Tenant's expense, plus an administration charge of Fifteen
 percent (15%) of such amount, to be paid as Additional Rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At
its sole cost, the Tenant shall undertake and complete all necessary repairs or replacements required to the Leased Premises, or the
Property, as a result of damage occasioned to the Leased Premises, or the Property, by virtue of any break- in or attempted break-in
to the Leased Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The
Tenant agrees to obtain the prior written approval of the Landlord prior to any work being completed in the Leased Premises.

**15.**  **<u>SIGNAGE</u>** 

The Tenant shall not erect, affix, install or maintain any signs, lettering, identification or any promotional or other written materials on the exterior of the Leased Premises, or within the Leased Premises if visible from the exterior of the Leased Premises (the "**Signage**"), without the prior written approval of the Landlord, such approval not to be unreasonably withheld, or delayed and such Signage must comply with building standards and with all municipal requirements. The Tenant shall be solely responsible for maintaining and repairing the Signage and for making good any such damage caused by the removal of the Signage at the expiry or earlier termination of this Lease.

**16.**  **<u>REGISTRATION AND ESTOPPEL CERTIFICATE</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Tenant shall have the right to register a caveat respecting this Lease but not disclosing
 the Rent or other monetary provisions in the appropriate Land Titles Office but shall not
 be entitled to file or register this Lease. If the Tenant registers a caveat, the Tenant
 shall forthwith upon the request of the Landlord execute and deliver to the Landlord such
 partial discharges, consents, and plans as may be requested by the Landlord from time-to-time.
 If requested by the Landlord, the Tenant will sign, within Five (5) consecutive days of a
 request to do so by the Landlord, the "**Tenant's Estoppel Certificate** "
 in the form, or similar form, as set forth in Schedule "B".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
Tenant shall not under any circumstances permit any lien, writ, caveat, encumbrance or other charge (except for a lease caveat as set-out
in Section 16(a) above) to be filed against the title to the Leased Premises or the Lands and in the event of the filing of such lien,
writ, caveat, encumbrance or other charge, the Tenant shall forthwith, at the Tenant's sole cost and expense, cause the same to
be discharged from the title at the land titles office immediately upon demand to do so by the Landlord.

**17.**  **<u>ALTERATIONS TO LEASED PREMISES</u>** 

The Tenant acknowledges that the Leased Premises are accepted "as-is, where-is" and all improvements are the responsibility of the Tenant.

**18.**  **<u>SUBORDINATION</u>** 

This Lease and any caveat which Tenant may file pursuant to Section 16 hereof relating thereto) shall be subordinate to every mortgage that now or at any time affects the Leased Premises. Following request from the Tenant, the Landlord will use reasonable commercial efforts to provide from the Landlord's mortgagee(s) non-disturbance agreement(s) (in the standard form required by the mortgagee(s)) in favour of the Tenant confirming that the Tenant's rights pursuant to this Lease will be honoured, providing the Tenant is not in Default under the terms of this Lease. The Tenant shall be responsible for any legal fees incurred by Landlord, respecting such non-disturbance agreement(s).

**19.**  **<u>ASSIGNMENT</u>** 

Neither this Lease, nor the Leased Premises, nor control or shares of the Tenant (if a corporation) shall be assigned, transferred, sublet or changed, nor shall anyone other than the Tenant be permitted to occupy the Leased Premises, in whole or in part, by any means whatsoever including, without limitation, operation of law (each of which act is hereinafter referred to as a "**Transfer**"), without the Landlord's prior written consent/approval, such consent/approval not to be unreasonably withheld.

Notwithstanding the foregoing, the Tenant will not require the Landlord's consent to a Transfer in the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an
assignment of this Lease or a subletting of the whole of the Leased Premises to a parent, subsidiary, or affiliate of the Tenant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) an
assignment, sublet or transfer in connection with a merger, reorganization, or sale of a majority of the assets or share stock of Tenant
or Tenant's parent company

(hereafter, collectively a "**Pre-Approved Transfer**").

Prior to affecting any Pre-Approved Transfer, the Tenant shall provide the Landlord with at least Fourteen (14) consecutive days prior written notice of the proposed Pre-Approved Transfer as well as the name of the name of the transferee.

In the event of an approved Transfer or Pre-Approved Transfer by which the Tenant receives a rent in the form of cash, goods, or services from the transferee, which is greater than the Rent payable hereunder to the Landlord, the Tenant will pay any such excess to the Landlord in addition to all Rent payable under this Lease, and such excess Rent shall be deemed to be further Rent payable hereunder.

In the event of an approved Transfer or Pre-Approved Transfer, the Tenant shall not be relieved of any obligation under this Lease. Any attempted Transfer by the Tenant in violation of the terms and covenants of this section shall be void. The Tenant and the transferee shall execute all documents and acknowledgments in such form and content as may be required by the Landlord in relation to any approved Transfer or Pre-Approved Transfer. The Tenant shall be responsible for all of the expenses incurred by the Landlord in connection with the Landlord's review of any request for consent to a Transfer.

**20.**  **<u>UNAVOIDABLE DELAY</u>** 

In the event the Landlord is delayed in performance of its obligations hereunder by reason of causes beyond its control (the "**Unavoidable Delay**"), the Landlord will provide the Tenant with written notice (the "**Notice of Delay**") of such Unavoidable Delay, and to the best of the Landlord's knowledge, such Notice of Delay will include the revised estimated completion date and the time for performance shall be extended accordingly. If the Landlord has any obligation to complete Tenant improvements, it shall not be responsible for any delay in construction due to Unavoidable Delay.

**21.**  **<u>ENVIRONMENTAL WARRANTY</u>** 

The Tenant is liable to the Landlord for the release of any hazardous materials, substances, contaminants, pollutants, toxic gases or wastes (hereinafter referred to as "**Pollutants**") which were caused by the Tenant or anyone for whom the Tenant is at law responsible following the full execution of this Lease which occurs on the Leased Premises and or the Property, and which might impair the quality of air, land or water, affect human health, or damage any plant, animal life, land, building or structure or which is otherwise in contravention of any environmental law. The Landlord and the Tenant agree that the Tenant shall not be responsible for any pre-existing Pollutants within the Lease Premises prior to the full execution of this Lease. The Tenant covenants and agrees to ensure that all uses and activities on the Leased Premises are in compliance with all current and all future federal, provincial, and municipal laws and regulations, and/or any permits or authorizations granted thereunder. Without limiting the generality of the foregoing, the Tenant shall ensure compliance with all federal, provincial, and municipal environmental, health and safety laws. Any breaches of environmental or health and safety laws, past, present, or future, and any breaches of the Tenant's covenants herein, shall be resolved expeditiously by the Tenant to the Landlord's satisfaction. If the Tenant fails to resolve such breaches to the Landlord's satisfaction, the Landlord may rectify such breaches in its sole option. All expenses incurred by the Landlord, including reasonable legal expenses on a solicitor and client full indemnity basis and the costs of environmental tests, audits, reviews, remediation, and an administration fee in the amount of Fifteen percent (15%) of the aggregate of all such costs, shall be paid by the Tenant forthwith on demand and shall be collectible by the Landlord from the Tenant as Additional Rent. Except in the event of an emergency, either real or perceived, it is understood and agreed that upon the provision of reasonable, prior written notice to the Tenant, the Landlord and/or its agent(s), including consultants, have the ongoing right to enter upon the Leased Premises, from time-to-time, so that it may carry out such environmental tests, audits and reviews as the Landlord considers necessary.

The Tenant shall promptly notify the Landlord in writing of any release of any Pollutants or any other occurrence or condition at the Leased Premises which could contaminate the Leased Premises or subject the Landlord or the Tenant to any fines, penalties, orders, investigations, or proceedings under any federal, provincial, and municipal environmental, health and safety laws.

On the expiry or earlier termination of this Lease or at any time if required by any governmental authority pursuant to any federal, provincial and municipal environmental, health and safety laws, the Tenant shall remove from the Leased Premises all Pollutants released by the Tenant or any person for whom the Tenant is responsible for at law before or after the commencement of the Term, and the Tenant shall remediate any contamination of the Leased Premises or any adjacent properties or roads resulting from Pollutants, in either case, brought onto, used or released from the Leased Premises by the Tenant or any person for whom it is in law responsible before the commencement of the Term or during the Term of this Lease. The Tenant shall use a qualified environmental consultant to perform the remediation. The Tenant shall, at its own cost, obtain such approvals and certificates in respect of the remediation as are required under all federal, provincial, and municipal environmental, health and safety laws to evidence completion of the remediation satisfactory to the applicable governmental authority having jurisdiction. All such Pollutants shall remain the property of the Tenant, notwithstanding any rule of law or other provision of this Lease to the contrary and notwithstanding the degree of their affixation to the Leased Premises.

The Tenant shall indemnify the Landlord and its directors, officers, shareholders, employees, agents, successors and assigns, from any and all liabilities, actions, damages, claims, remediation, cost recovery claims, losses, costs, orders, fines, penalties and expenses whatsoever (including all consulting and reasonable legal costs on a solicitor and client full indemnity basis and the cost of remediation of the Leased Premises and any adjacent properties and roads) arising from or in connection with any breach or non-compliance by the Tenant with the provisions in this Section 21.

The obligation of the Tenant to undertake clean-ups, to make repairs, obtain approvals and certificates, indemnify the Landlord or otherwise comply with the obligations under this Section 21 shall survive the expiry or earlier termination of this Lease.

**22.**  **<u>NOTICE</u>** 

All notices which may be given under the provisions of this Agreement will be in writing (a "**Notice**"), given pursuant to the Lease must be delivered by hand or email to the Landlord at the address set-out on page 1 of the Lease, and to the Tenant at the Leased Premises or the address set-out on page 1 of the Lease, or to such other address or email as the parties may direct in writing. Notice will be deemed to have been received immediately when hand delivered or transmitted via email, or if mailed, upon the Fifth (5<sup>th</sup>) business day following the date the Notice is mailed.

**23.**  **<u>DESTRUCTION</u>** 

In the event the Building is totally or partially destroyed by fire or other casualty, the Landlord, at its sole option, may terminate this Lease by notice in writing to the Tenant whereupon the Tenant shall immediately surrender the Leased Premises and all its interest therein to the Landlord. In the event the Landlord does not elect to terminate this Lease, the Landlord covenants to repair and restore the Leased Premises, provided that the Landlord shall only be required to repair and restore the Leased Premises to a condition similar to the condition the Leased Premises were in at the commencement of the Term and the Tenant shall be responsible to repair and restore all of the leasehold improvements to the condition they existed at the time of such destruction and to repair and restore all of the Tenant's trade fixtures, equipment, decorations or any other work done by the Tenant in the Leased Premises after the commencement of the Term. If the Leased Premises is rendered wholly unusable (as certified by the Landlord), then Rent shall abate for such period of time as the Leased Premises is unusable.

The Tenant agrees that in the event of damage or destruction to the Leased Premises or any part thereof covered by insurance carried by the Tenant, the Tenant shall use the proceeds of any such insurance for the purpose of repairing or restoring such damage or destruction, including the leasehold improvements. Provided however, in the event of damage to or destruction of the Leased Premises or the Building entitling the Landlord to terminate this Lease as set-out above, then, if the Leased Premises or any part thereof have been damaged or destroyed, the Tenant shall pay to the Landlord, or irrevocably assign to the Landlord, all of the Tenant's insurance proceeds relating to any leasehold improvements in the Leased Premises and if the Leased Premises have not been damaged or destroyed, the terms of Section 14 shall apply in relation to the delivery or removal of the leasehold improvements, in the Landlord's discretion.

**24.**  **<u>REPRESENTATIONS</u>** 

There are no representations or warranties made by the Landlord in any way related to this Lease, except those set forth herein.

**25.**  **<u>GOVERNING LAWS</u>** 

This Lease and any rules and regulations adopted hereunder shall be governed by the laws of the Province of Alberta.

**26.**  **<u>ATTACHMENTS</u>** 

The attached Schedules "A", "B", "C", and "D" special clauses, riders, and appendices (if any) are all included and form part of this Lease. All of the terms and provisions contained in Schedule "C" shall be read in conjunction with the provisions of this Lease; however, in the event of any conflict between the terms of this Lease and anything set-out in Schedule "C", the terms and conditions in Schedule "C" shall prevail and supersede such conflicting provisions in this Lease only to the extent of such conflict.

**27.**  **<u>CONFIDENTIALITY</u>** 

The Tenant shall not disclose to any person, firm, partnership, corporation, or other legal entity, including any combination of them, the financial or any other terms of this Lease, except to its professional advisers, consultants, and auditors, if any, and except as required by law.

**28.**  **<u>QUIET ENJOYMENT</u>** 

Provided the Tenant duly, regularly, and punctually makes all payments of Rent and any other payments required to be made and paid under this Lease and has not defaulted and is not in Default under any of the terms of this Lease, the Tenant shall and may peaceably possess and enjoy the Leased Premises for the Term without any interruption or disturbance from the Landlord.

**29.**  **<u>SALE BY LANDLORD</u>** 

Should the Landlord convey or assign its interest in the Leased Premises or otherwise divest itself of its interest in the Leased Premises it shall be relieved of all obligations under this Lease.

**30.**  **<u>TIME OF THE ESSENCE</u>** 

Time shall be of the essence of this Lease, save as herein otherwise specified.

**31.**  **<u>EXECUTION</u>** 

This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original and all of which taken together will be deemed to constitute one and the same instrument. Counterparts may be executed either in original or electronic form and the parties adopt any signatures received electronically as original signatures of the parties.

**IN WITNESS WHEREOF**, the Landlord and the Tenant have duly executed this Lease Agreement as of the date first written above by the hands of their duly authorized officers.

---

| | |
|:---|:---|
| **MONARCH EQUITIES INC.** | **MONARCH EQUITIES INC.** |
| **(Landlord)** | **(Landlord)** |
| Per: | |
|  | Name: |
|  | Title: |
| I have authority to bind the corporation. | I have authority to bind the corporation. |
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| **(Tenant)** | **(Tenant)** |
| Per: | /s/ Yanguang Yuan |
|  | Name: Yanguang Yuan |
|  | Title: CEO |
| Per: | |
|  | Name: |
|  | Title: |
| I/We have authority to bind the corporation. | I/We have authority to bind the corporation. |

---

**SCHEDULE "A"**

**<u>LEGAL DESCRIPTION OF LANDS AND PLAN OF LEASED PREMISES</u>**

PLAN: 192 3012, BLOCK: 7, LOT: 3

![](cm281_ex10-4img01.jpg)

**SCHEDULE "B"**

**<u>TENANT'S ESTOPPEL CERTIFICATE</u>**

THE UNDERSIGNED, the Tenant in the Lease Agreement made between _______ as Landlord and the undersigned as Tenant dated the ____ day of ____, ____ (the **"Lease")** certifies to ___________

1. That the Tenant's obligation to pay Rent pursuant to the Lease commenced on _____________ and expires on _____________.

2. That the Lease has not been altered or amended since the time of execution and is in full force and effect in accordance with its original terms.

3. That the Leased Premises, measured as provided in the Lease, actually comprise an area of ______ square feet, more or less. For the period of _________ _____, ____ to ________, _______, the Basic Rent due pursuant to the Lease is $______ per annum ($______ per square foot). For the period commencing the _____ day of _______, ________, the Basic Rent reserved pursuant to the lease is $_________ per annum ($_____ per square foot).

4. The Tenant is in possession of the Leased Premises.

5. That the Lease requires that all expenses relating to the Leased Premises be paid by the Tenant and the Tenant is paying Basic Rent and all charges including without limitation the Additional Rent required to be paid pursuant to the Lease.

6. The amount of prepaid rent or security deposit held by the Landlord is ______.

7. That the Landlord has fulfilled its obligations under the Lease to the date hereof and the undersigned has no outstanding claims of any nature against the Landlord with respect to the Lease.

8. That there is no right of set-off against the Landlord in respect of the Lease or the rents payable by the Tenant thereunder.

9. That there is no credit of any nature in favour of the undersigned in respect of the Lease or money due to the undersigned from the Landlord in respect of the Lease, other than prepaid rent, if applicable, as outlined in paragraph 6 above.

10. That the Leased Premises leased to the undersigned pursuant to the Lease are in accordance with the Lease and the rent specified thereunder to be paid by the undersigned for the balance of the term of the Lease is payable in accordance with the terms of the Lease and the covenants and agreements under the Lease of the undersigned to the Landlord are all in full force and effect and will be fulfilled by the undersigned during the balance of the term of the Lease.

DATED at the City of ___________________, in the Province/State of ______________,this _____ ___ day of ________________. 20_____.

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| Per: | |
|  | Name: |
|  | Title: |
| I have authority to bind the corporation. | I have authority to bind the corporation. |

---

**SCHEDULE "C"**

**<u>ADDITIONAL CLAUSES</u>**

**(a)**  **<u>PRE-AUTHORIZED DEBIT</u>** 

The Tenant will participate in the Landlord's pre-authorized payment plan (the "**PAD Payment Plan**"), whereby the Landlord will be authorized to debit the Tenant's bank account for Rent payable on the first day of each month (unless specified otherwise in the Lease) on a monthly basis. Accordingly, the Tenant will complete and deliver the Landlord's confidential pre-authorized debit form (the "**PAD Form**") as provided by the Landlord upon execution of this Agreement.

**(b)**  **<u>OPTION TO EXTEND</u>** 

In consideration of the payment of Rent and other charges and provided the Tenant is not in default under this Lease at the date of exercise of the option hereby granted and provided the Tenant has not been in default under this Lease during the Term, or subsequent Extension Term, as the case may be, the Landlord grants to the Tenant an option to extend this Lease for Two (2) further terms of Five (5) years (collectively, the "**Extension Terms**") commencing on the expiration of the initial Term on the same terms and conditions as are herein contained, excluding any provisions for free rent, bonuses, leasehold improvement allowances, signing inducements, Basic Rent, and this option to extend. The Tenant shall provide the Landlord with written notice of its intention to extend no later than Six (6) months prior to the expiration of the initial Term or subsequent Extension Term, as the case may be, failing which, the option to extend shall be null and void. The Basic Rent payable during the Extension Terms shall be the then current fair market rental for comparable premises similar to the Leased Premises, taking into account the location, size, configuration, level of improvement, and Permitted Use of the Leased Premises, as agreed between the Landlord and the Tenant, or failing such agreement, as determined by arbitration, pursuant to the terms of the *Arbitrations Act of Alberta.*

**(c)**  **<u>LANDLORDS WORK</u>** 

On or before the Commencement Date, the Landlord will commence the work as more particularly detailed in Schedule "D" attached hereto, at their sole cost and expense (the "**Landlord's Work**"), upon receipt of written proof from the Tenant that the Permitted Use of the Leased Premises, defined herein, has been approved by the County of Leduc (the "**County of Leduc Approval**"). Upon completion of the Landlord's Work, as contemplated herein, the Landlord and the Tenant will arrange to conduct an inspection (the "**Inspection**") of the Leased Premises prior to the Commencement Date, defined herein. Such Inspection shall be for the purposes of confirming that the Landlord's Work has been completed pursuant to the provisions of Schedule "D" herein.

**(d)**  **<u>TENANT'S WORK</u>** 

The Tenant agrees to accept the Leased Premises in an "as-is, where-is" condition, except for that Landlord's Work detailed in Item (d) herein, and will be responsible for the coordination, construction and cost of any improvements or modifications to the Leased Premises (the "**Tenant's Work**"). The Tenant will be responsible for obtaining all necessary approvals, including zoning, development and business permits for the Tenant's Work and the Permitted Use of the Leased Premises. The Tenant shall submit all permit applications and plans to the Landlord for its written approval prior to the submission of all permits to the governing authorities. Copies of such permits must be secured and provided for the Landlord's written approval prior to the commencement of the Tenant's Work.

**(e)**  **<u>FREE RENT PERIOD</u>** 

Provided this Agreement is fully executed, and the Landlord has received proof of satisfactory Tenant's Insurance, the Landlord shall provide the Tenant with use of the Leased Premises free of Basic Rent for Eight (8) months of the Term, to be specifically applied against Basic Rent due in the months of June 2021, July 2021, August 2021, September 2021, October 2021, November 2021, December 2021, and January 2022 (the "**Free Rent Period**"). During the Free Rent Period, Additional Rent and the cost of all utilities consumed within the Leased Premises, and any other fees or charges due under the Lease, shall continue to apply.

**(f)**  **<u>OPTION TO TERMINATE</u>** 

Provided the Tenant is not then, and has not been in default of its covenants and obligations under the Lease, the Tenant shall have a One (1) time option to terminate this Lease (the "**Option to Terminate**") on the following conditions: (i) the Option to Terminate shall only be exercised effective on May 31, 2026 (the "**Early Termination Date**"), by providing the Landlord with written notice of termination by no later than November, 2025 (the "**Termination Notice**"); (ii) concurrently with delivery by the Tenant of the Termination Notice, the Tenant shall pay to the Landlord a termination fee equal to: (a) the unamortized real estate commissions paid by the Landlord in respect of this Lease; and (b) the unamortized portion of the Free Basic Rent; and (c) an amount equal to Three (3) months of Basic Rent and Additional Rent then due under the Lease, (collectively, the "**Termination Fee**"), plus GST.

The Tenant shall continue to be bound by and comply with all the Tenant's obligations under the Lease from and after the delivery of the Termination Notice until the Early Termination Date. If the Termination Notice is not delivered on or before the Early Termination Date, or if any of the above conditions have not been met in the manner and/or within the timelines provided herein, this Option to Terminate shall expire and be of no further force or effect and the Tenant shall not have any further right to terminate the Lease.

**(g)**  **<u>SIGNAGE</u>** 

Notwithstanding anything to the contrary in Section 15 of this Lease, the Tenant shall be permitted to install Signage (defined herein) on the front and rear exterior of the Leased Premises at the Tenant's sole cost and expense. All Signage shall be subject to the Landlord's standard signage criteria and prior written approval, not to be unreasonably withheld or delayed and such Signage shall meet all municipal by-laws and guidelines.

**(h)**  **<u>PARKING</u>** 

The Tenant will be permitted exclusive access to those parking stalls located directly in front of the Leased Premises and shall be provided, at no charge, with non-exclusive access and use of the non-reserved parking stalls on the Property on a first-come, first-served basis (the "**Parking**"). The Landlord is not responsible for the Parking of any vehicles or for damages to any vehicles or personal property parked upon the Property.

**(i)**  **<u>JOINT FIXTURING PERIOD</u>** 

Provided the Lease is fully executed, the Security Deposit is received in full, and the Landlord has received proof of satisfactory Tenant Insurance, the Landlord shall grant the Tenant access to the Leased Premises for the purposes of fixturing, subject to the Landlord's approval (not to be unreasonably withheld), on April 1, 2021 until May 31, 2021, (the "**Joint Fixturing Period**"). During the Joint Fixturing Period, the Landlord and its' contractors will be working jointly in the space with the Tenant and its' contractors. The Tenant will abide by any site rules and regulations in-place, as required by the Landlord and its' contractors, and shall make appropriate plans so as not to interfere with the Landlord's completion of its' Landlord's Work, as defined in Item (d) herein. During the Joint Fixturing Period, the Tenant shall be subject to all terms and conditions of this Lease, save and except that the Tenant shall not be obligated to pay Basic Rent or Additional Rent. However, the Tenant shall be responsible for charges for utilities consumed within the Leased Premises.

**(j)**  **<u>RIGHT OF FIRST REFUSAL</u>** 

Provided the Tenant: (i) pays the Rent as and when due and performs the terms and covenants in this Lease; (ii) the Tenant, or a Permitted Transferee, defined herein, is itself in occupation of and conducting its business in the whole of the Leased Premises in accordance with the terms of this Lease; (iii) and is not in default hereunder, the Tenant shall have the right of first refusal (the "**ROFR**") to lease any available premises within the Building (the "**Refusal Premises**"), all subject to prior rights of first refusal of other tenants in the Building. In the event any Refusal Premises becomes available for lease at any time during the Term, the Landlord will not lease or accept any *bona fide* offer to lease the Refusal Premises without first notifying the Tenant in writing that the Refusal Premises are available to be leased.

The Tenant shall have a period of: (i) five (5) days within which it shall enter into negotiations with the Landlord for the Refusal Premises; and (ii) ten (10) days within which it shall complete and deliver to the Landlord a written offer (the "**Offer**") for the Refusal Premises. If the Tenant does not exercise this ROFR in the time and manner aforementioned, or having delivered the Offer to the Landlord, the Landlord does not accept same, then the Landlord may proceed to lease the Refusal Premises to any third- party and thereafter this ROFR shall be null and void and of no further force and effect and the Landlord shall be released from any further obligation to the Tenant in respect of same. In no event will the rental rate for the Refusal Premises be less than the Basic Rent for the Leased Premises at the time the Tenant exercises this ROFR. The Landlord shall prepare a lease amending agreement for the Refusal Premises and the Tenant agrees to execute same prior to the commencement of the term for the Refusal Premises.

**(k)**  **<u>ABOVEGROUND STORAGE TANKS</u>** 

Only if single-walled aboveground storage tanks (the "**AST**") are to be installed on behalf of the Tenant or will be used by the Tenant in the Leased Premises or the Property, shall this Item (k) apply to the Tenant. Upon receiving the prior written consent of the Landlord, which consent may be arbitrarily withheld, the Tenant may install single-walled **AST's** in the Leased Premises or Property, which are necessary to conduct its business in the Leased Premises, provided the Tenant undertakes, at its sole cost, to comply with all of the following terms and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding
 all terms and conditions contained in subsections (i) thru (ix) herein, all activities for
 the AST's must be done in strict adherence with *Directive 055: Storage Requirements for the Upstream Petroleum Industry* (the "**Directive 055** "), issued
 by the Alberta Energy Regulator (the "**AER** "), and more particularly detailed
 in Section 5 of Directive 055, *Requirement for Aboveground Storage Tanks.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Pursuant
 to Section 12 of this Lease, acquire and maintain valid Environmental Damage Insurance coverage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Prior
 to installation, provide the Landlord with a full, written description of any and all single-walled
 AST's, including, but not limited to, the construction of the tanks, age of the tanks.
 The Tenant has advised the Landlord that there are Two (2) AST's to be installed on
 the Property, as more particularly detailed in Schedule "E" attached hereto.
 Each AST measures approximately Four (4) meters in height and Three (3) meters in width.
 The containment area for the AST's is approximately Eight Hundred (800) square feet
 +/-, and that the AST's will be placed an approximate distance of Twenty (20')
 feet away from the doors to the Leased Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Pursuant
 to stipulated Section 5.3.2.2. of Directive 055, *Leak Detection,* for leak detection
 systems on AST's, as such is defined herein, the following shall apply: (a) incorporation
 of a layer of porous material, such as sand, over the liner and underneath the AST to provide
 protection to the liner and to allow any leakage to move preferentially through the porous
 material to a collection area within the diked area; and (b) monthly visual inspections of
 AST's and the surfaces of the diked area for evidence of potential problems, damage,
 or leakage. Any spills or leaks shall be remediated immediately and reported, if required
 (*pursuant to AER regulation IL 98-1, a Memorandum of Understanding between Alberta Environmental Protection and the Alberta Energy Utilities Board regarding coordination of release notification requirements and subsequent regulatory response)* and corrective action must be initiated,
 as required. All abnormal circumstances and corrective actions must be fully documented by
 the Tenant and made available to the Landlord upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Pursuant
 to Section 5.3.2.1. in Directive 055, *Secondary Containment,* have secondary containment
 in place for all single-walled AST's, and ensure that the fill- spouts of all AST's
 are protected by drip-pads or some other means to prevent spillage into the environment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Comply
 with all applicable environmental laws and all provincial and federal legislation, guidelines,
 and regulations with respect to single-walled AST's, including, but not limited to,
 their design, installation, operation, testing and removal, maintain records with regards
 to such operation and testing, and provide the Landlord with written confirmation of such
 compliance, if requested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Provide
 the Landlord annually, and at any other time during the Term, upon the request of the Landlord,
 the Landlord acting reasonably, including, without limitation, tank and line tightness tests
 and product/inventory reconciliation and calculation records, with regards to any AST's
 and associated equipment, including piping. In the event such tests and/or records show or
 indicate a loss or failure, the Tenant shall rectify the cause of such loss or failure at
 its sole cost and expense forthwith and provide proof of such rectification to the Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) In
 the event of any spill, leak, or unreconciled product loss from the AST which is greater
 than Five (5) litres, to immediately notify the Landlord of such incident.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) In
 the event of any spill, leak, or unreconciled product loss from any AST, remove, decontaminate,
 dispose of, or replace the affected tanks, associated equipment, contents, and any substance
 contaminated by same, all in compliance with applicable environmental laws and all federal
 and provincial legislation, regulations and guidelines respecting AST's.

Notwithstanding the foregoing, the Tenant agrees to design and procure all AST's to the highest available standard, so as to minimize discharge or leak of any product contained within the AST's into the environment, including the Leased Premises or the Property. The AST's are to be situated in a location to be mutually agreed-upon between the Landlord and the Tenant, all parties agreeing to act reasonably and in good faith.

**SCHEDULE "D"**

**<u>SCOPE OF WORK</u>**

**<u>Building(s) & Site Dimensions</u>:**

Site

&nbsp;&nbsp;&nbsp;&nbsp;· Monarch
 Industrial Park - Building 2

&nbsp;&nbsp;&nbsp;&nbsp;· Nisku,
 Alberta

Building

&nbsp;&nbsp;&nbsp;&nbsp;· Main
 Floor Office 1,900 SQFT

&nbsp;&nbsp;&nbsp;&nbsp;· Second
 Floor Office 3,800 SOFT

&nbsp;&nbsp;&nbsp;&nbsp;· Lab
 (open main floor) 1,900 SOFT

&nbsp;&nbsp;&nbsp;&nbsp;· Office
 Layout per York preliminary drawing dated 2021-01-13.

**<u>General Scope and Description</u>:**

Site & Building Earthwork

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
 and compact 150 mm radon rock and poly on existing compacted granular structure for under-slab
 granular and radon system for office and lab space

Foundations & Slabs

&nbsp;&nbsp;&nbsp;&nbsp;· 15
 Screw piles for second floor structure

&nbsp;&nbsp;&nbsp;&nbsp;· Steel
 columns and beam line on gridline G' & H for second floor structure (rated at 100
 lbs/ft)

&nbsp;&nbsp;&nbsp;&nbsp;· Hollow
 core (10") second floor structure

&nbsp;&nbsp;&nbsp;&nbsp;· New
 8" slab on grade structure in office area to match existing building specification.

&nbsp;&nbsp;&nbsp;&nbsp;· New
 8" slab on grade structure in warehouse area to match existing building specification
 (base building slab poured by base building contractor)

Structure & Misc. Steel

&nbsp;&nbsp;&nbsp;&nbsp;· Steel
 superstructure to be column & beams at 12' top of second floor slab (hollow core structure
 on top of steel)

&nbsp;&nbsp;&nbsp;&nbsp;· All
 steel to be an SP3 finish c/w standard grey shop primer.

&nbsp;&nbsp;&nbsp;&nbsp;· Roof
 opening (RTUs & exhaust fan) supports.

Exterior Walls, Demising & Interior Walls, Windows, and Doors

&nbsp;&nbsp;&nbsp;&nbsp;· Removal
 of existing precast panel(s) for new glazing on East elevation

&nbsp;&nbsp;&nbsp;&nbsp;· Exterior
 windows and doors (dependent on NECB review);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Kawneer
 system 1 series clear anodized curtain wall (or equivalent)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o 6mm gray SB60 Low E glass
sealed units, 6mm H.S standard colour spandrel glass with galvalume back pans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o Kawneer 190 narrow stile
series doors c/w standard commercial hardware

&nbsp;&nbsp;&nbsp;&nbsp;· 2
 Flour fire rated demising wall (for base building requirement) on gridline 8.

&nbsp;&nbsp;&nbsp;&nbsp;· 2
 Flour fire-rated wall separating warehouse and office space along gridline G.

&nbsp;&nbsp;&nbsp;&nbsp;· Interior
 office walls Drywall steel stud framing

&nbsp;&nbsp;&nbsp;&nbsp;· All
 interior doors, frames, and exterior exposed steel to be painted (1) coat prime and (2) coats
 finish.

&nbsp;&nbsp;&nbsp;&nbsp;· Interior
 door slabs to be paint grade wood.

Interior Finishes

&nbsp;&nbsp;&nbsp;&nbsp;· Flooring
 - Carpet tile in all office spaces, LVT in lunchroom and washrooms and 12x24 ceramic tile
 in entry vestibule (owner to select from standard colour choices)

&nbsp;&nbsp;&nbsp;&nbsp;· Millwork
 - Lunchroom with uppers and lowers with laminate countertops. Vanity countertops in washrooms
 (BF as required by code on main floor). Reception desk with plastic laminate finish

&nbsp;&nbsp;&nbsp;&nbsp;· Ceiling
 to be standard ceiling grid and tile system to match adjacent tenant space. Drywall ceilings
 in washroom and utility rooms as required by code.

Roof

&nbsp;&nbsp;&nbsp;&nbsp;· New
 roof openings for RTU and exhaust fans as required. Work with base building roofing company
 to ensure warranty is not voided.

HVAC

&nbsp;&nbsp;&nbsp;&nbsp;· Main
 floor - Supply and install (2) 3 Ton RTU c/w hail guards, economizer, flat roof curb, ducting
 and thermostat.

&nbsp;&nbsp;&nbsp;&nbsp;· Second
 floor - Supply and install (2) 3 Ton RTU c/w hail guards, economizer, flat roof curb, ducting
 and thermostat.

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
 and install (3) 140 CFM washroom exhaust fans for large washrooms, (1) 100 CFM washroom exhaust
 fan for shower area and (1) 70 CFM washroom exhaust fan for small BF washroom.

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
 and install (2) 2KW electric heaters for supplemental stair heat.

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
 and install (2) 500 CFM transfer fan for Mechanical and Electrical room (location to be determined)

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
 and install (1) 1,500 CFM HRV in ceiling of space and ductwork distribution.

&nbsp;&nbsp;&nbsp;&nbsp;· Specific
 MUA and exhaust fans for warehouse/production floor are not included in this scope (these
 will be by tenant and are based on equipment specific requirements during design)

MECHANICAL

&nbsp;&nbsp;&nbsp;&nbsp;· Gas
 fired radiant tube heaters to the warehouse (existing base building - modified as required)

&nbsp;&nbsp;&nbsp;&nbsp;· Gas
 fired unit heaters at OH Doors (existing base building - modified as required)

&nbsp;&nbsp;&nbsp;&nbsp;· Circulation
 fans (existing base building)

&nbsp;&nbsp;&nbsp;&nbsp;· Electric
 force flow heaters in Mechanical and Electrical Rooms.

&nbsp;&nbsp;&nbsp;&nbsp;· Gas
 lines as required (based on 2-psi gas pressure). Gas is priced with a single common main.

Plumbing

**<u>Office - Main Floor</u>**

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
 and installation of the following:

&nbsp;&nbsp;&nbsp;&nbsp;· (1)
 - Dual compartment kitchen sink c/w faucet for lunchroom

&nbsp;&nbsp;&nbsp;&nbsp;· (3)
 - ADA compliant drop in LAV c/w faucet.

&nbsp;&nbsp;&nbsp;&nbsp;· (3)
 - ADA compliant water closet.

&nbsp;&nbsp;&nbsp;&nbsp;· (2)
 - Standard fiberglass shower units c/w taps

&nbsp;&nbsp;&nbsp;&nbsp;· (2)
 - Wall mount urinal c/w flush valve.

&nbsp;&nbsp;&nbsp;&nbsp;· (8)
 - Floor drains (3) in washrooms, (1) in mechanical room and (4) in lab area

&nbsp;&nbsp;&nbsp;&nbsp;· (1)
 - 40 Gal. gas hot water heater

&nbsp;&nbsp;&nbsp;&nbsp;· (1)-Mop
 sink

&nbsp;&nbsp;&nbsp;&nbsp;· (1)
 - Supply drain, waste, and vent piping for the above noted fixtures. Connection to existing
 services inside the building

**<u>Office - Second Floor</u>**

&nbsp;&nbsp;&nbsp;&nbsp;· (4)
 - ADA compliant drop in LAV c/w faucet.

&nbsp;&nbsp;&nbsp;&nbsp;· (4)
 - ADA compliant water closet.

&nbsp;&nbsp;&nbsp;&nbsp;· (2)
 - Floor drains in washrooms

&nbsp;&nbsp;&nbsp;&nbsp;· (1)
 - Supply drain, waste, and vent piping for the above noted fixtures. Connection to existing
 services inside the building

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
 and installation of gas line piping for 4 exterior Rooftop Units and 1 HRV

Fire Protection

&nbsp;&nbsp;&nbsp;&nbsp;· Main
 and second floor offices sprinklers designed per NFPA requirements.

Controls

&nbsp;&nbsp;&nbsp;&nbsp;· Stand-alone
 control components as required.

Electrical

&nbsp;&nbsp;&nbsp;&nbsp;· Servicing
 & Distribution and Power

&nbsp;&nbsp;&nbsp;&nbsp;· Modify
 existing panel feeder and distribution layout in the main electrical room to provide an individual
 600V-600A metered electrical service.

&nbsp;&nbsp;&nbsp;&nbsp;· 1-42
 circuit 120/208-volt distribution panel on the second floor

&nbsp;&nbsp;&nbsp;&nbsp;· Receptacles
 for general use as per the following:

&nbsp;&nbsp;&nbsp;&nbsp;· 1
 fourplex and 1 duplex in each office

&nbsp;&nbsp;&nbsp;&nbsp;· 7
 - in the lunchroom

&nbsp;&nbsp;&nbsp;&nbsp;· 3
 at reception desk

&nbsp;&nbsp;&nbsp;&nbsp;· 1 receptacle
for each cubicle

&nbsp;&nbsp;&nbsp;&nbsp;· 20-amp
receptacles at copier locations

&nbsp;&nbsp;&nbsp;&nbsp;· Convenience
receptacles to meet code.

&nbsp;&nbsp;&nbsp;&nbsp;· 1 floor
box in the main boardroom room

&nbsp;&nbsp;&nbsp;&nbsp;· 4 duplex
and 1 fourplex in the warehouse area. Location to be determined prior to rough in

&nbsp;&nbsp;&nbsp;&nbsp;· Power
and connections for all mechanical equipment noted.

Lighting

&nbsp;&nbsp;&nbsp;&nbsp;· Recessed
LED flat panel lighting in all office and common areas.

&nbsp;&nbsp;&nbsp;&nbsp;· Pot lights
in the meeting rooms, suspended architectural fixture in the main meeting room.

&nbsp;&nbsp;&nbsp;&nbsp;· Pot lights
in the main floor washrooms.

&nbsp;&nbsp;&nbsp;&nbsp;· Surface
mount fixtures in service areas and stairwell.

&nbsp;&nbsp;&nbsp;&nbsp;· All
 fixtures are controlled by line voltage switching. Dimmers for all offices and common areas,
 occupancy sensors in washrooms and service rooms.

&nbsp;&nbsp;&nbsp;&nbsp;· Relocate
6 existing warehouse highbay fixtures to accommodate space requirements.

&nbsp;&nbsp;&nbsp;&nbsp;· 4 - strip
lights in the warehouse with individual line voltage switch for task lighting. Locations to be determined prior to rough in.

Communication

&nbsp;&nbsp;&nbsp;&nbsp;· New
 2" conduit with backbone cabling from the building demark to the tenant electrical
 room.

&nbsp;&nbsp;&nbsp;&nbsp;· Certified
Cat 6 structured cabling system

Life & Safety

&nbsp;&nbsp;&nbsp;&nbsp;· Fire
alarm system to code c/w fire alarm verification

&nbsp;&nbsp;&nbsp;&nbsp;· Emergency
and exit lighting as per code.

**SCHEDULE"E"**

**ABOVEGROUND STORAGE TANKS**

![](cm281_ex10-4img02.jpg)

## Exhibit 10.5

**Exhibit 10.5**

**140 — 4 th Avenue SW Office Lease Form**

**ASPEN PROPERTIES (SLP**) **LTD.**

(Landlord)

- and -

**NANO INNOVATIONS INC. and ADVEN INDUSTRIES INC.**

(Tenant)

**OFFICE LEASE**

BUILDING: 140 4th Avenue SW, Calgary, Alberta

**Contents**

---

| | | |
|:---|:---|:---|
| **Section** | **Section** | **Page** |
| ARTICLE 1 BASIC TERMS | ARTICLE 1 BASIC TERMS | 1 |
| 1.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic Terms | 1 |
| ARTICLE 2 DEFINITIONS | ARTICLE 2 DEFINITIONS | 2 |
| 2.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Definitions | 2 |
| ARTICLE 3 GRANT OF LEASE | ARTICLE 3 GRANT OF LEASE | 7 |
| 3.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Grant | 7 |
| 3.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Quiet Enjoyment | 7 |
| 3.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Covenants of the Landlord and the Tenant | 7 |
| ARTICLE 4 TERM AND POSSESSION | ARTICLE 4 TERM AND POSSESSION | 7 |
| 4.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Term | 7 |
| 4.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Early Occupancy and Fixturing Period | 7 |
| 4.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delayed Possession | 7 |
| 4.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord's Work | 8 |
| 4.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant's Work | 8 |
| 4.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acceptance of Premises | 8 |
| ARTICLE 5 RENT AND OCCUPANCY COSTS | ARTICLE 5 RENT AND OCCUPANCY COSTS | 8 |
| 5.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Basic Rent | 8 |
| 5.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional Rent | 8 |
| 5.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Occupancy Costs | 8 |
| 5. 4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of Rent — General | 9 |
| 5. 5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partial Month's Rent | 9 |
| 5.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment - Occupancy Costs | 9 |
| 5.7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security Deposit | 9 |
| 5.8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net Lease | 10 |
| 5.9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-authorized Debit | 10 |
| ARTICLE 6 USE OF PREMISES | ARTICLE 6 USE OF PREMISES | 11 |
| 6.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Use | 11 |
| 6.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Compliance with Laws | 11 |
| 6.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abandonment | 11 |
| 6.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Nuisance | 11 |
| ARTICLE 7 SERVICES, MAINTENANCE, REPAIR AND ALTERATIONS BY LANDLORD | ARTICLE 7 SERVICES, MAINTENANCE, REPAIR AND ALTERATIONS BY LANDLORD | 11 |
| 7.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Control of the Development by Landlord | 11 |

---

**Contents**

---

| | | |
|:---|:---|:---|
| Section |  | **Page** |
| 7.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operation of Building | 12 |
| 7.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Services to Premises | 12 |
| 7.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Building Services | 12 |
| 7.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maintenance, Repair and Replacement | 12 |
| 7.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional Services | 13 |
| 7.7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alterations by the Landlord | 13 |
| 7.8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Access by the Landlord | 14 |
| 7.9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Relocation | 14 |
| 7.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Energy Conservation and Security Policies | 14 |
| 7.11 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Telecommunications | 14 |
| 7.12 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Redevelopment and Demolition | 15 |
| ARTICLE 8 MAINTENANCE, REPAIR, ALTERATIONS AND IMPROVEMENTS BY TENANTS | ARTICLE 8 MAINTENANCE, REPAIR, ALTERATIONS AND IMPROVEMENTS BY TENANTS | 15 |
| 8. 1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Condition of Premises | 15 |
| 8.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Failure to Maintain Premises | 15 |
| 8.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Alterations by the Tenant | 16 |
| 8.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade Fixtures and Personal Property | 16 |
| 8.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Builder's Liens | 17 |
| 8.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Signs | 17 |
| 8.7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Normal Business Hours | 17 |
| ARTICLE 9 TAXES | ARTICLE 9 TAXES | 17 |
| 9.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Landlord's Real Estate Taxes | 17 |
| 9.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Tenant's Real Estate Taxes | 17 |
| 9.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goods and Services Taxes | 18 |
| 9.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right to Contest | 18 |
| ARTICLE 10 INSURANCE | ARTICLE 10 INSURANCE | 18 |
| 10.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Landlord's Insurance | 18 |
| 10.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Tenant's Insurance | 18 |
| 10.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Form of Tenant Policies | 19 |
| 10.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Placement of the Tenant's Insurance By the Landlord | 19 |
| 10.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Insurance Risks | 19 |
| ARTICLE 11 INJURY TO PERSON OR PROPERTY | ARTICLE 11 INJURY TO PERSON OR PROPERTY | 20 |
| 11.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indemnity by the Tenant | 20 |

---

**Contents**

---

| | | |
|:---|:---|:---|
| **Section** | **Section** | **Page** |
| 11.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Release of the Landlord | 20 |
| ARTICLE 12 TRANSFERS BY THE TENANT | ARTICLE 12 TRANSFERS BY THE TENANT | 21 |
| 12.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfers by the Tenant | 21 |
| 12.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant's Notice, Landlord's Right to Terminate or Sublet | 22 |
| 12.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Conditions of Transfer | 23 |
| 12.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Corporate Records | 23 |
| 12.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Permitted Transfers | 24 |
| 12.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Advertising | 24 |
| ARTICLE 13 SURRENDER | ARTICLE 13 SURRENDER | 24 |
| 13.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Possession | 24 |
| 13.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merger | 24 |
| 13.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments After Termination | 24 |
| ARTICLE 14 HOLDING OVER | ARTICLE 14 HOLDING OVER | 24 |
| 14.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Month-to-Month Tenancy | 24 |
| 14.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenancy at Sufferance | 25 |
| 14.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General | 25 |
| ARTICLE 15 RULES AND REGULATIONS | ARTICLE 15 RULES AND REGULATIONS | 25 |
| 15.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purpose | 25 |
| 15.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Observance | 25 |
| 15.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-Compliance | 25 |
| 15.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loading and Unloading | 25 |
| ARTICLE 16 EXPROPRIATION | ARTICLE 16 EXPROPRIATION | 25 |
| 16.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Taking of Premises | 25 |
| 16.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partial Taking of Development | 26 |
| 16.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Surrender | 26 |
| 16.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Partial Taking of Premises | 26 |
| 16.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Awards | 26 |
| ARTICLE 17 DAMAGE BY FIRE OR OTHER CASUALTY | ARTICLE 17 DAMAGE BY FIRE OR OTHER CASUALTY | 26 |
| 17.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limited Damage to Premises | 26 |
| 17.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Major Damage to Premises | 27 |
| 17.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abatement | 27 |
| 17.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Major Damage to Building | 27 |
| 17.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limitation on the Landlord's Liability | 27 |

---

**Contents**

---

| | | |
|:---|:---|:---|
| **Section** | **Section** | **Page** |
| ARTICLE 18 TRANSFERS BY LANDLORD | ARTICLE 18 TRANSFERS BY LANDLORD | 27 |
| 18.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale, Conveyance and Assignment | 27 |
| 18.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of Sale, Conveyance or Assignment | 27 |
| 18.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordination | 28 |
| 18.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attornment | 28 |
| 18.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effect of Attornment | 28 |
| 18.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Execution of Instruments | 28 |
| ARTICLE 19 NOTICES, ACKNOWLEDGEMENTS, AUTHORITIES FOR ACTION | ARTICLE 19 NOTICES, ACKNOWLEDGEMENTS, AUTHORITIES FOR ACTION | 28 |
| 19.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notices | 28 |
| 19.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acknowledgements | 29 |
| 19.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorities for Action | 29 |
| ARTICLE 20 DEFAULT | ARTICLE 20 DEFAULT | 29 |
| 20.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest and Costs of Lease of Space | 29 |
| 20.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Right of the Landlord to Perform Covenants | 29 |
| 20.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Events of Default | 29 |
| 20.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Waiver of Exemption and Redemption | 30 |
| 20.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Surrender | 31 |
| 20.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payments | 31 |
| 20.7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Security Interest | 31 |
| 20.8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lien on the Tenant's Goods and Equipment | 31 |
| 20.9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Act of Subtenants | 32 |
| 20.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Remedies Cumulative | 32 |
| ARTICLE 21 HAZARDOUS SUBSTANCES | ARTICLE 21 HAZARDOUS SUBSTANCES | 32 |
| 21.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Tenant's Covenants | 32 |
| 21.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inquiries by the Landlord | 33 |
| 21.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ownership of Hazardous Substances | 33 |
| 21.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Landlord's Remedies upon Default | 33 |
| ARTICLE 22 MISCELLANEOUS | ARTICLE 22 MISCELLANEOUS | 34 |
| 22.1 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Relationship of Parties | 34 |
| 22.2 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Consent Not Unreasonably Withheld | 34 |
| 22.3 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name of Building | 34 |
| 22.4 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Applicable Law and Construction | 34 |
| 22.5 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Entire Agreement | 34 |

---

**Contents**

---

| | | |
|:---|:---|:---|
| **Section** | **Section** | **Page** |
| 22.6 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amendment or Modification | 34 |
| 22.7 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Construed Covenants and Severability | 35 |
| 22.8 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Implied Surrender or Waiver | 35 |
| 22.9 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Successors Bound | 35 |
| 22.10 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liability: Joint/Several | 35 |
| 22.11 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set-off | 35 |
| 22.12 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registrations | 35 |
| 22.13 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unavoidable Delay | 35 |
| 22.14 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Limitation of Recourse | 36 |
| 22.15 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Counterparts and Electronic Delivery | 36 |
| 22.16 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independent Legal Advice | 36 |
| 22.17 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Survival of Covenants and Indemnities | 36 |
| 22.18 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Exculpatory Provisions | 37 |
| 22.19 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Indemnifier | 37 |
| 22.20 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Real Estate Investment Trust | 37 |
| 22.21 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Confidentiality | 37 |
| 22.22 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trademarks | 37 |
| 22.23 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Additional Provisions | 37 |
| 22.24 | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acceptance of Lease | 38 |

---

SCHEDULE A - FLOOR PLAN

SCHEDULE B - LEGAL DESCRIPTION

SCHEDULE C - DETERMINATION OF OCCUPANCY COSTS

SCHEDULE D - RULES AND REGULATIONS

SCHEDULE E - TENANT IMPROVEMENTS

SCHEDULE F - LANDLORD'S WORK AND TENANT'S WORK

SCHEDULE G - ADDITIONAL PROVISIONS

SCHEDULE G-1 - LANDLORD'S CONSTRUCTION

SCHEDULE H - BASE BUILDING WORK

SCHEDULE I - SECURITY AGREEMENT

SCHEDULE J - INDEMNITY AGREEMENT

**OFFICE LEASE**

This Lease dated as of March 28, 2022 (the "Lease"), is made and entered into by the Landlord and Tenant named below who agree as follows:

**ARTICLE 1** 

**BASIC TERMS**

**1.1** **Basic Terms** 

---

| | | |
|:---|:---|:---|
| (a)(i) | **Landlord:** | ASPEN PROPERTIES (SLP) LTD. |
| (ii) | **Address:** | c/o Aspen Property Management Limited Partnership<br> 800, 140 - 4th Avenue SW <br> Calgary, Alberta T2P 3N3<br> Telephone: 403.216.2660 |
| (iii) | **Building Address:** | 140 - 4th Avenue SW Calgary, Alberta T2P 3N3 |
| (b) (i) | **Tenant:** | NANO INNOVATIONS INC. and ADVEN INDUSTRIES INC. |
|  | **Address:** | • |
|  | **Telephone:** | • |
|  | **Email:** | • |
| (c) | **Indemnifier:** | None. Not Applicable |
| (d) | **Rentable Area of the Premises:** | 6,326 square feet |
| (e) | **Premises:** | Suite 2320 shown for illustrative purposes on the attached Schedule A |
| (f) | **Term:** | 6 Years |
| (g) (i) | **Commencement Date:** | March 1, 2023 |
| (ii) | **Expiry Date:** | February 28, 2029<br> (subject to an Extension Option as per the attached Schedule G) |
| (h) | **Basic Rent:** |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Period** | **Per Sq. Ft. of Rentable Area Per Year** |
| March 1, 2023 to February 28, 2025 | March 1, 2023 to February 28, 2025 | $19.00 |
| March 1, 2025 to February 28, 2027 | March 1, 2025 to February 28, 2027 | $20.00 |
| March 1, 2027 to February 28, 2029 | March 1, 2027 to February 28, 2029 | $22.00 |
| (i) | **Security Deposit:** | $127598.58 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) $21,266.43 (inclusive
of GST), to be applied to each of March, April and May 2023 Rent as it comes due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) $21,266.43 (inclusive
of GST), to be applied to each of March and April 2024 Rent as it comes due; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) $21,266.43 (inclusive
of GST), to be held as security for the Tenant's obligations under the Lease.

(j) **Operating Name of Business different from the legal name):** (if · None.
Not applicable

(k) **Fixturing Period:** September 1, 2022 to February 28, 2023

The foregoing basic terms are hereby approved by the parties and each reference in this Lease to any of the basic terms shall be construed to include the provisions set forth above as well as all of the additional terms and conditions of the applicable sections of this Lease where such basic terms are more fully set forth.

**ARTICLE 2<br> DEFINITIONS**

**2.1** **Definitions** 

In this Lease:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "Additional Rent"
means all amounts in addition to Basic Rent payable to the Landlord or any other Person under this Lease, other than GST.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "affiliate" and
"subsidiary" have the meaning given in the *Business Corporations Act* (Alberta).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Architect" means
such firm of professional architects, engineers or surveyors as the Landlord may select from time to time engaged for preparation of
construction drawings for the Building or for general supervision of architectural and engineering aspects and operations thereof or
for the measurement of the Building of part or parts thereof and includes any consultant(s) from time to time appointed by the Landlord
or the Architect whenever such consultant(s) is acting within the scope of his appointment and specialty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Basic Rent"
means the amount described in section 1.1(h) and payable by the Tenant to the Landlord in respect of each Lease Year or any portion thereof
under section 5.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "BOMA Standard"
means the American National Standard Method for Measuring Floor Area in Office Buildings (ANSI/BOMA Z65.1-1996), as such standard may
be amended or replaced from time to time by the Building Owners and Managers Association International ()"**BOMA**") or a
successor organization to BOMA and as such standard may be further amended by the Landlord in measuring floor areas of the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Building" means
the office building located on the Land with the municipal address of 140 - 4th Avenue SW, Calgary, Alberta in which the Premises are
located and all other structures, improvements, facilities and appurtenances that have been or will be constructed on the Land (above,
at or below grade), including the Building Systems and the Common Areas, all as may be altered, expanded, reduced or reconstructed from
time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Building Systems"
means at any time: (i) all heating, ventilating and air-conditioning and other climate control systems and other systems, services,
installations and facilities installed in or servicing the Building including, without limitation, the following systems, services, installations
and facilities: elevators and escalators, mechanical (including plumbing, sprinkler, drainage and sewage), electrical and other utilities,
lighting, sprinkler, life safety (including fire prevention, communications, security and surveillance), computer (including environmental,
security and lighting control), ice and snow melting, refuse removal, window washing and music; (ii) all machinery, appliances, equipment,
apparatus, components, computer software and appurtenances forming part of or used for or in connection with any of such systems, services,
installations and facilities including, but not limited to, boilers, motors, generators, fans, pumps, pipes, conduits, ducts, valves,
wiring, meters and controls, and the structures and shafts housing and enclosing any of them; and (iii) all Landlord owned or controlled
telecommunications facilities, installations and equipment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "Business Day"
means a day that is not a Saturday, Sunday or a holiday in the province where the Land is situated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "Capital Tax"
is defined in Schedule C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "CDS" - Intentionally
deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "Change of Control"
means, in the case of any corporation or partnership, the transfer or issue by sale, assignment, subscription, transmission on death,
mortgage, charge, security interest, operation of law or otherwise, of any shares, voting rights or interest which would result in any
change in the effective control of such corporation or partnership, unless such change occurs as a result of trading in the shares of
a public corporation listed on a recognized stock exchange in Canada or the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "Commencement Date"
means the date set out or determined in section 1. 1 (g)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "Common Areas"
means those areas, facilities, improvements, installations and equipment (collectively, the "**Facilities**") in or around
or adjacent to the Building and the Land existing from time to time that: (i) are neither rented nor designated nor intended by the Landlord
to be rented; and (ii) are provided or designated from time to time by the Landlord for use in common by the Landlord, the Tenant, other
tenants of the Building or their subtenants, agents, employees, customers, invitees or licensees, whether or not those areas are open
to the general public or to all the tenants of the Building including, without limitation, the Facilities consisting of (without limitation)
building mechanical systems, entrances, lobbies, access and service corridors, stairways, indoor and outdoor walkways (both open and
enclosed), malls, courts and arcades (both open and enclosed), public seating areas and facilities, public washrooms, indoor and outdoor
landscaping and landscaped areas, passageways or tunnels leading to any public walkway or other facilities or to other buildings or concourses,
mailrooms, electrical, telephone, meter, valve, mechanical, storage and janitor rooms, shipping and receiving areas and loading docks,
package or passenger pick-up areas, waste disposal or recycling facilities, the Parking Facility, driveways, laneways and ramps and sidewalks,
parks and other municipal facilities for which the Landlord directly or indirectly is subject to obligations in its capacity as owner
of the Building or an interest in it, and any of the foregoing Facilities that are shared with any other building as determined by the
Landlord in its sole discretion, all as may be designated by the Landlord from time to time and as may be altered, expanded, reduced,
reconstructed or relocated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "Development"
means the Land and the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "Environmental Claim"
means all claims, losses, costs, expenses, fines, penalties,payments and/or damages (including, without limitation, all solicitors' fees
on a solicitor and client basis) relating to, arising out of, resulting from or in any way connected with the presence of any Hazardous
Substance at the Premises or the Development, including, without limitation, all costs and expenses of any investigation, remediation,
restoration or monitoring of the Premises, the Land or Building and/or any property adjoining or in the vicinity of the Development required
or mandated by Environmental Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "Environmental Law"
means any law, bylaw, order, ordinance, ruling, regulation,certificate, approval, policy, guideline, consent or directive of any applicable
federal, provincial or municipal government, governmental department, agency or regulatory authority or any Court of competent jurisdiction,
as well as any common law obligations or requirements, relating to environmental or health and safety matters and/or regulating the generation,
import, storage, distribution, labelling, sale, use, handling, transport or disposal of any Hazardous Substance which may be in force
from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "Events of Default"
has the meaning given in section 20.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "Expert" includes
the Architect and also means any engineer, land surveyor or other professional consultant appointed by the Landlord who, in the opinion
of the Landlord, is qualified to perform the function for which he or she is retained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) "Expiry Date"
means the date defined or determined in section 1.1(g)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) "Fiscal Year"
means a twelve month period (all or part of which falls within the Term) from time to time determined by the Landlord, at the end of
which the Landlord's books in respect of the Development are balanced for auditing and/or taxation purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) "Fixturing Period"
is defined in section 4.2.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) "GST" means the
goods and services tax payable under the Excise Tax Act Canada).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) "Hazardous Substance"
means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any material or substance
declared or deemed to be hazardous, deleterious,caustic, dangerous, a dangerous good, toxic, a contaminant, a waste, a source of a contaminant,
a pollutant or toxic under any Environmental Law and includes, without limitation, polychlorinated biphenyl and urea- formaldehyde;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any solid, liquid, gas
or odour or combination of any of them that, if emitted into the air, would create or contribute to the creation of a condition of the
air that:

&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) endangers the health, safety
or welfare of Persons or the health of animal life;

&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) interferes with normal enjoyment
of life or property; 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) causes damage to plant
life or to property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any substance which
is hazardous to the environment, including Persons or property and includes, without limiting the generality of the foregoing, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) radioactive materials;

&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) explosives; 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) any substance that, if
added to any water, would degrade or alter or form part of a process of degradation or alteration of the quality of that water to the
extent that it is detrimental to its use by man or by any animal, fish or plant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) "Indemnifier"
Intentionally deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) "Indemnity Agreement"
Intentionally deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) "Land" means
those lands located in the City of Calgary, in the Province of Alberta, and having a
legal description as set out in Schedule B (or for such part as may be designated by the Landlord from time to time) as altered, expanded
or reduced from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) "Landlord" means
the party named as the landlord in section 1. 1 (a)(i) and includes the landlord's successors and assigns. and having a
legal description as set out in Schedule B (or for such part as may be designated by the Landlord from time to time) as altered, expanded
or reduced from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) "Landlord's Construction"
is defined in Schedule G and described in Schedule G- 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) "Landlord's Work"
is defined in Schedule E and described in Schedule F.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) "Lease" means
this lease, any schedules and riders attached hereto, and every properly executed instrument which by its terms amends, modifies or supplements
this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) "Lease Year"
means: (i) in the case of the first Lease Year, the period beginning on the Commencement Date and ending on the last day of the 12th
consecutive full month after the expiry of the calendar month in which the Commencement Date occurs (except that if the Commencement
Date occurs on the first day of a calendar month, the first Lease Year shall end on the day prior to the first anniversary of the Commencement
Date) and; (ii) in the case of each subsequent Lease Year, consecutive 12 month periods, provided that the final Lease Year shall end
on the Expiry Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) "Leasehold Improvements"
has the meaning given in Schedule E.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) "Mortgage" means
any mortgage, charge or security instrument (including a deed of trust or mortgage securing bonds) and all extensions, renewals, modifications,
consolidations and replacements of any such item which may now or hereafter affect the Development or any part of it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) "Mortgagee" means
a lender under a Mortgage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "Normal Business Hours"
means the business hours set by the Landlord for the Development from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) "Occupancy Costs"
are defined in Schedule C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) "Operating Expenses"
is defined in Schedule C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) "Parking Agreement"
means the Parking Facility Operator's form of parking licence agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) "Parking Facility"
means the parking facility for the Building designated by the Landlord from time to time located on or near the Land.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) "Parking Facility
Operator" means the operator of the Parking Facility, if any, appointed to manage the Parking Facility from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) "Permitted Transferee"
means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any corporation which is
an Affiliate (with the meaning of the Canada Business Corporations Act) of the originally named Tenant ("Affiliate") but
only for so long as it remains an Affiliate of such original named Tenant. In the event the Affiliate ceases to be an affiliate pursuant
to the Canada Business Corporations Act, an assignment of sublease shall be deemed to have occurred in accordance with this Lease; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a corporation formed as
a result of a merger or amalgamation (within the meaning of the Canada Business Corporations Act) of the Tenant with another corporation
or corporations, provided the resulting entity has the same or greater financial capacity as that of the Tenant on the Commencement Date
of this Lease; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any entity with results
from the bona fide reorganization of the Tenant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the purchase of all or
substantially all of the assets of the Tenant, provided the resulting purchaser has the same or greater financial capacity as that of
the Tenant and such entity does not conflict with any restrictions in the Development.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) "Person" means
any person, firm, partnership or corporation, or any group or combination of persons, firms, partnerships or corporations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) "Premises" is
defined in section 1.1(e).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) "Prime Rate"
means the variable rate of interest (expressed as a rate per annum) established by a Canadian chartered bank designated by the Landlord
from time to time as the reference rate of interest which such bank employs in order to determine the interest rate it will charge for
demand loans in Canadian dollars to its customers in Canada and which it designates as its prime rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) "Purchaser" has
the meaning given in section 18.4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) "Real Estate Taxes"
is defined in Schedule C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) "Rent" means
the aggregate of all amounts payable by the Tenant to the Landlord under this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) "Rentable Area"
of the Premises, the Building or any portion thereof means such area measured in accordance with the BOMA Standard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ww) "Required Conditions"
means that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Tenant is the originally
named Tenant, or a Permitted Transferee and in either case has not undergone a Change of Control and is itself in occupation of and carrying
on business from at least 75% of the Premises, excepting the Tenant's Permitted Occupants under Schedule G Section 3; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Tenant has paid all
Rent when due and there have not been the occurrence of 3 or more Events of Default and there is not then an existing Event of Default
that remains unremedied beyond the applicable curative period other than an Event of Default described in section 20.3 which is by its
nature incurable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) " Security Agreement"
means the terms and conditions comprising the Landlord and the Tenant's Security Agreement attached as Schedule I.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(yy) "Security Deposit"
has the meaning given in section 5.7.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(zz) "Stipulated Rate"
means interest at a rate equal to the Prime Rate plus 5% per annum, calculated and compounded monthly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aaa) "Structural Elements"
means those parts of the Building consisting of the footings and foundations, structural columns and beams, structural subfloors, bearing
walls, curtainwalls, roofs, the component parts of such structural elements and any other item generally determined by an Expert to be
a Structural Element.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bbb) "Tenant" means
the party named as the tenant in section 1. 1 (b)(i) and includes the Tenant's successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ccc) "Tenant's Pro-rata
Share" is defined in Schedule C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ddd) "Tenant's Work"
is defined in Schedule E and described in Schedule F.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(eee) "Term" means
the period of time set out in section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(fff) "Transfer" means
all or any of the following, whether by conveyance, written agreement or otherwise: (i) an assignment of this Lease in whole or in part;
(ii) a sublease of all or any part of the Premises; (iii) the sharing or transfer of any right of use or occupancy of all or any part
of the Premises; (iv) any mortgage, charge or encumbrance of this Lease or the Premises or any part of the Premises or other arrangement
under which either this Lease or the Premises become security for any indebtedness or other obligation; and (v) a Change of Control,
and includes any transaction or occurrence whatsoever (including, but not limited to, expropriation, receivership proceedings, seizure
by legal process and transfer by operation of law), which has changed or might change the identity of the Person having use or occupancy
of any part of the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ggg) "Transferee"
means the Person to whom a Transfer is or is to be made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hhh) "TSP" has the
meaning given in section 7.11.

**ARTICLE 3**

**GRANT OF LEASE**

**3.1** **Grant** 

In consideration of the Rent, covenants and agreements hereinafter reserved and contained on the part of the Tenant to be paid, observed and performed, the Landlord hereby demises and leases the Premises to the Tenant, and the Tenant hereby leases and accepts the Premises from the Landlord, to have and to hold during the Term, subject to the terms and conditions of this Lease. The Landlord grants to the Tenant a non-exclusive licence throughout the Term to the benefit or use (as may be appropriate) of those Common Areas which provide access to the Premises or which are generally made available to all tenants in the Building, in common with other tenants of the Building and with all others entitled thereto, subject to the terms and conditions of this Lease.

**3.2** **Quiet Enjoyment** 

The Landlord covenants to provide the Tenant with quiet enjoyment and possession of the Premises during the Term, subject to the terms and conditions of this Lease. The Landlord's covenant as to quiet enjoyment and possession shall be limited to matters of title to the Land and shall not extend to any other liability that may be imposed by law in respect of such covenant.

**3.3** **Covenants of the Landlord and the Tenant** 

The Landlord covenants to observe and perform all of the terms and conditions to be observed and performed by the Landlord under this Lease. The Tenant covenants to pay the Rent when due under this Lease, and to observe and perform all of the terms and conditions to be observed and performed by the Tenant under this Lease.

**ARTICLE 4 <br> TERM AND POSSESSION**

**4.1** **Term** 

Notwithstanding sections 4.2 and 4.3, the Term of this Lease shall be for the period of time described in section 1.1(f) beginning on the Commencement Date and ending on the Expiry Date unless terminated earlier as provided in this Lease. If the Commencement Date is not a fixed date under this Lease but is to be determined by the occurrence of subsequent events, the Tenant agrees to execute a certificate confirming the Commencement Date.

**4.2** **Early Occupancy and Fixturing Period** 

The Tenant shall be permitted by the Landlord to occupy the Premises prior to the Commencement Date for the period of time described in section 1.1 (k) (the "**Fixturing Period**") commencing on the date the Landlord's Work and Landlord's Construction is substantially complete and the Landlord provides vacant possession of the Premises to the Tenant for the purpose of allowing the Tenant to commence the Tenant's Work and conduct business. The Tenant's right to commence occupancy of the Premises during the Fixturing Period shall be conditional on: (a) the Tenant having executed this Lease in the form approved by the Landlord; (b) the Tenant having provided evidence of insurance showing compliance with the insurance requirements of this Lease; and (c) no Event of Default existing that remains uncured beyond the applicable curative period, if any. During the Fixturing Period, the Tenant will not be required to pay Basic Rent or Occupancy Costs, however, all other terms and conditions of this Lease shall apply. At the beginning of the Fixturing Period the Tenant will begin and thereafter diligently perform and complete any required Tenant's Work. The Tenant shall pay for all electricity, water, heat, security, refuse removal and other utilities and services furnished to the Tenant or its contractors by the Landlord or its contractors during the Fixturing Period promptly upon being billed therefor.

**4.3** **Delayed Possession** 

If the Landlord is delayed in delivering possession of all or any portion of the Premises to the Tenant on or before the Fixturing Period, then unless such delay is principally caused by or attributable to the Tenant, its servants, agents or independent contractors, then the date on which the Premises are to be made available to the Tenant, the Commencement Date and the obligation of the Tenant to pay Basic Rent and Occupancy Costs shall be postponed for a period equal to the duration of the delay. This Lease shall not be void or voidable nor shall the Landlord be liable to the Tenant for any loss or damage resulting from any delay in delivering possession of the Premises to the Tenant, and the deferment of the obligation of the Tenant to pay Basic Rent and Occupancy Costs shall be accepted by the Tenant as full compensation for any such delay.

If any delay in the completion of Landlord's Construction is attributable to the Tenant, its servants, agents or independent contractors, the obligation of the Tenant to pay Basic Rent and Occupancy Costs shall not be deferred and the time period for completion of Landlord's Construction (but not the Expiry Date) shall be extended for a reasonable period which shall not in any event be less than a period corresponding to such delay.

**4.4** **Landlord's Work and Landlord's Construction** 

The Landlord's Work is described in Schedule F. The Landlord's Construction is described in Schedule G and Schedule G-1. Except for items of Landlord's Work described in Schedule F and Landlord's Construction described in Schedule G and Schedule G-1, the Tenant hereby acknowledges that it accepts the Premises and the Building in an ''as-is'' condition as of the date possession of the Premises is granted to the Tenant by the Landlord. If Schedule F, Schedule G, and Schedule G-1,specifically requires that certain items of work be performed by the Landlord, the Landlord's Work and Landlord's Construction shall be completed in a good and workmanlike manner and in accordance with applicable laws and shall consist only of the items of work described under the heading "Landlord's Work" in Schedule F and "Landlord's Construction" in Schedule G and Schedule G-1. All other Leasehold Improvements which do not comprise the Landlord's Work and Landlord's Construction that are to be made to the Premises shall be the Tenant's Work and shall be done at the Tenant's cost in accordance with the terms of this Lease.

**4.5** **Tenant's Work** 

The Tenant's Work is described in Schedule F. The Tenant shall complete all Tenant's Work in a good and workmanlike manner to the Landlord's satisfaction and in accordance with applicable laws and in accordance with the plans, drawings and specifications approved by the Landlord and in accordance with the terms of this Lease, including without limitation, Schedule E.

**4.6** **Acceptance of Premises** 

Taking possession of all or any portion of the Premises by the Tenant shall be conclusive evidence as against the Tenant that the Premises or such portion thereof are in satisfactory condition on the date of taking possession, subject only to latent defects and to deficiencies (if any) listed in writing in a notice delivered by the Tenant to the Landlord within seven (7) Business Days after the later of the date of taking possession or the Commencement Date.

**ARTICLE 5**

**RENT AND OCCUPANCY COSTS**

**5.1** **Basic Rent** 

The Tenant shall pay to the Landlord as Basic Rent from and after the Commencement Date and throughout the Term in the amount per square foot of Rentable Area of the Premises, payable in equal monthly instalments in advance on the 1st day of each month during the Term.

**5.2** **Additional Rent** 

The Tenant shall also pay throughout the Term, at the times and in the manner provided in this Lease, all Additional Rent which shall, except as otherwise provided in this Lease, be payable within 15 days of receipt by the Tenant of an invoice, or written statement.

**5.3** **Occupancy Costs** 

The Tenant shall pay to the Landlord, at the times and in the manner provided in section 5.6, the Occupancy Costs (if any) determined under Schedule C.

For illustrative purposes and without providing any representations thereon, the Landlord estimates that the Occupancy Costs payable for 2022 is $19.42 per square foot of rentable area per year.

**5.4** **Payment of Rent — General** 

All amounts payable by the Tenant to the Landlord under this Lease shall be deemed to be Rent and shall be payable and recoverable as Rent in the manner herein provided, and the Landlord shall have all rights against the Tenant for default in any such payment as in the case of arrears of Rent. Rent shall be paid to the Landlord, without deduction or set-off, in legal tender of the jurisdiction in which the Development is located, at the address of the Landlord as set forth in this Lease, or to such other Person or at such other address as the Landlord may from time to time designate in writing. The Tenant's obligation to pay Rent shall survive the expiration or earlier termination of this Lease.

**5.5** **Partial Month's Rent** 

If the Commencement Date is a day other than the first day of a calendar month, the instalment of Basic Rent payable on the Commencement Date shall be that proportion of Basic Rent which the number of days from the Commencement Date to the last day of the month in which the Commencement Date falls bears to 365. If the Term ends on a day other than the last day of a calendar month, the instalment of Basic Rent payable on the first day of the last calendar month of the Term shall be that proportion of Basic Rent which the number of days from the first day of such last calendar month to the last day of the Term bears to 365.

**5.6** **Payment - Occupancy Costs** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Prior to the Commencement
Date and to the beginning of each Fiscal Year thereafter, the Landlord shall compute and deliver to the Tenant a bona fide estimate in
writing of the Occupancy Costs for the following Fiscal Year or portion thereof, if applicable. Without further notice or demand, the
Tenant shall pay to the Landlord the amount of the Occupancy Costs in equal monthly instalments, in advance, over the Fiscal Year or
portion thereof, simultaneously with the Tenant's payments on account of Basic Rent. From time to time the Landlord may reestimate, on
a reasonable basis, the amount of such Occupancy Costs for any fiscal period in which case the Landlord shall give notice to the Tenant
of such re-estimate and fix new equal monthly instalments for the remaining balance of such fiscal period so that, after giving credit
for the instalments paid by the Tenant on the basis of the previous estimate or estimates, all the Occupancy Costs as estimated or reestimated
will have been paid during such fiscal period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Landlord shall deliver
to the Tenant, as soon as practicable following the end of each Fiscal Year, a written statement, setting out in reasonable detail the
amount of Occupancy Costs for such Fiscal Year. If the total monthly instalments of Occupancy Costs actually paid by the Tenant to the
Landlord during the Fiscal Year is lower than the amount of the Occupancy Costs payable for the Fiscal Year under Schedule C, the Tenant
shall pay to the Landlord the difference within 30 days after the date on which such statement is received by the Tenant and if the total
monthly instalments of Occupancy Costs actually paid by the Tenant to the Landlord during the Fiscal Year is greater than the amount
of the Occupancy Costs payable for the Fiscal Year under Schedule C, the Landlord shall credit the difference against the Occupancy Costs
for the current Fiscal Year and the monthly instalments payable in respect of same shall be reduced accordingly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither party may claim
a re adjustment in respect of Occupancy Costs for a Fiscal Year for any error of computation or allocation unless notice is delivered
to the other party within 6 months after the date of delivery of the statement.

**5.7** **Security Deposit** 

The Landlord further acknowledges receipt of the amount described in section 1.1 (i) (the "**Security Deposit**") as advance rent for the months stated in sections 1.1(i)(i.) and 1.1(i)(ii.); and the amount under section 1.1(i)(iii.) as security for the cost incurred by the Landlord in construction of the improvements for the Premises, any leasehold improvement allowance or other tenant inducement granted by the Landlord to the Tenant, legal costs (on a solicitor and own client basis) and other costs incurred by the Landlord which are the Tenant's responsibility under this Lease and the faithful performance by the Tenant of its obligations under this Lease. The Tenant hereby acknowledges that the Security Deposit is deemed to be prepaid rent and hereby charges, pledges and assigns to the Landlord the Security Deposit and hereby grants a security interest to the Landlord in the Security Deposit and such security interest will be deemed to be independent of the Lease and the Tenant agrees that the Landlord may register a financing statement under the Personal Property Security Act (Alberta) in respect of the security interest herein created. The Landlord shall not be obliged to pay the Tenant any interest on the Security Deposit. The Landlord may commingle the Security Deposit with its own funds and shall not hold the Security Deposit as trustee. Any portion of the Security Deposit may be applied towards the payment of overdue or unpaid Rent and may also be applied as compensation to the Landlord for any loss or damage sustained by the Landlord as a result of the breach or non-observance by the Tenant of any of its obligations under the Lease, provided that in all cases the Landlord's other rights and remedies both in law and under the Lease are reserved, and the Tenant's liability hereunder is not limited to the amount of the Security Deposit. If during the Term any portion of the Security Deposit is so applied, then the Tenant shall, forthwith upon written demand by the Landlord, deliver to the Landlord within 2 Business Days of such demand the amount in the form of a bank draft or by certified cheque payable to the Landlord sufficient to restore the Security Deposit to its original amount. Provided there is no existing Event of Default beyond any applicable cure periods, the Landlord shall refund to the Tenant within 30 days after the Expiry Date any portion of the Security Deposit remaining less an amount (the "Occupancy Costs Holdback"), if any, equal to 5% of the Occupancy Costs, as determined by the Landlord, for the then current Fiscal Year. Once Occupancy Costs have been finally determined and adjusted for such Fiscal Year, the Occupancy Costs Holdback will be applied by the Landlord against any amount owing to the Landlord for Occupancy Costs and the balance, if any, of the Occupancy Costs Holdback shall be refunded to the Tenant. Nothing contained in the foregoing shall limit the Tenant's liability for payment of any Occupancy Costs in excess of the Occupancy Costs Holdback. If the Landlord sells the Landlord's interest in the Building or the Lands and transfers the Security Deposit to the purchaser, then the Landlord shall be discharged from all liability to the Tenant with respect to the Security Deposit.

**5.8** **Net Lease** 

Except as expressly set out herein, (a) it is intended that this Lease is a completely carefree net lease for the Landlord; (b) the Landlord is not responsible for any costs, charges, expenses or outlays of any kind arising from or relating to the Development (including the Premises) or to the use or occupancy of the Premises; and (c) the Tenant will be liable for and pay all costs, charges, expenses and impositions of every kind arising from or relating to the Premises and to their use, occupancy and contents and as provided in this Lease, its share of all costs, charges, expenses and impositions of every kind arising from or relating to the Development.

**5.9** **Pre-authorized Debit** 

The Tenant shall make payments of Rent for such period as the Landlord may request by way of a pre-authorized debit payment system. The Tenant shall pay all service fees and other charges in connection with the pre-authorized debit contemplated by this section including any charges or fees resulting from insufficient funds in the Tenant's account and a late charge and administration fee of $500.00. If the Tenant changes its financial institution upon which such preauthorized debits are drawn, the Tenant shall send a notice to the Landlord at least 30 days prior to the date such change is to take place and provide the Landlord with new pre-authorized debit authorization on the Tenant's new financial institution. The Tenant acknowledges and agrees that the Tenant shall remain responsible for all payments of Rent even if the Tenant's bank account is incorrectly debited or not debited for any reason whatsoever including an error by the Tenant's financial institution.

**ARTICLE 6**

**USE OF PREMISES**

**6.1** **Use** 

The Premises shall be used by the Tenant continuously and occupied only as general business offices, administrative uses, and such other related purposes for the business of the Tenant and for no other purpose or for such other purposes as the Landlord may specifically authorize in writing.

**6.2** **Compliance with Laws** 

The Premises shall be used and occupied in a safe, careful and proper manner so as not to contravene any present or future governmental or quasi-governmental laws in force or regulations or orders. If due solely to the Tenant's use of the Premises, improvements are necessary to comply with any of the foregoing or additional insurance coverage is required by the Landlord, acting reasonably, or the Mortgagee, the Tenant shall pay the entire cost thereof.

**6.3** **Abandonment** 

The Tenant shall not abandon the Premises at any time during the Term without the Landlord's written consent. So long as the Tenant is paying all Rent when due and in the manner required under this Lease and is not in an Event of Default, the Landlord will not have deemed the Tenant to have abandoned the Premises.

**6.4** **Nuisance** 

The Tenant shall not cause or maintain any nuisance in or about the Premises, and shall keep the Premises free of debris, rodents, vermin and anything of a dangerous, noxious or offensive nature or which could create a fire hazard (through undue load on electrical circuits or otherwise) or undue vibration, heat or noise.

**ARTICLE 7**

**SERVICES, MAINTENANCE, REPAIR AND ALTERATIONS BY LANDLORD**

**7.1** **Control of the Development by Landlord** 

The Landlord has at all times exclusive control of the Development and its management and operation. Without limiting the generality of the foregoing, at any time and from time to time, the Landlord may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) make repairs, replacements,
changes or additions to the Structural Elements, Building Systems, and other systems, facilities and equipment in the Building (including
the Premises) where necessary to serve the Premises or other parts of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) make changes or additions
to any part of the Building not in or forming part of the Premises including, without limitation, dedicating or conveying portions of
the Land, granting easements, rights-of-way, restrictive covenants or other interests in the Land and constructing additional improvements
in or adjoining the Land;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) terminate or amend the
Tenant's right of use of any of the Common Areas, change the location and size of any of the Common Areas or use parts of the Common
Areas for promotional or other activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) retain contractors and
employ all personnel, including supervisory personnel and managers, that the Landlord considers necessary for the effective maintenance,
repair, operation, management and control of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) prescribe the times, the
area, means and designated routes through the Common Areas for the delivery and shipping of merchandise, supplies, fixtures, and other
materials or goods of whatsoever nature to or from the Premises and all loading, unloading, and handling thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) do and perform such other
acts in and to the Building or any of its component parts as the Landlord considers reasonable for the proper and efficient maintenance,
repair, operation, management and control of the Building.

Notwithstanding anything else to the contrary in this Lease or at law, in the course of the Landlord's exercise of its rights hereunder, the Landlord shall be deemed not to have re-entered the Premises nor to have breached any obligation of this Lease nor have any liability to the Tenant and the Tenant shall not be entitled to any compensation or a reduction or abatement of Rent. The Landlord shall perform all of its work as expeditiously as is reasonably possible so as to interfere as little as is reasonably possible with the Tenant's use of the Premises.

**7.2** **Operation of Building** 

During the Term the Landlord shall operate and maintain the Building in accordance with standards from time to time prevailing for office buildings of a similar age and quality in the area in which the Building is located and, subject to payment by the Tenant of the Tenant's share of Occupancy Costs, the Landlord shall provide the services set out in sections 7.3 and 7.4.

**7.3** **Services to Premises** 

The Landlord shall arrange for the provision of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) heat, ventilation and air
conditioning (included in building standard) as required for the comfortable use and occupancy of the Premises during Normal Business
Hours; The Landlord shall maintain the heating, ventilation and air-conditioning equipment and systems serving the Premises and if such
equipment or systems are damaged or destroyed, or, in the opinion of the Landlord, require repair, inspection, overhauling or replacement,
the Landlord shall carry out such work with all reasonable diligence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) janitor services, including
window washing, as reasonably required to keep the Premises in a clean and wholesome condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) electric power for normal
lighting and small business office equipment (but not equipment using amounts of power disproportionate to that used by other tenants
in the Building);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) replacement of building
standard fluorescent tubes, light bulbs and ballasts as required from time to time at the Tenant's sole cost as a result of normal usage;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) maintenance, repair, and
replacement as set out in section 7.5.

**7.4** **Building Services** 

The Landlord shall provide in the Building:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) domestic hot and cold (or
temperate) running water and necessary supplies in washrooms sufficient for the normal use thereof by occupants in the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) elevator or escalator service
for access to and egress from the Premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) heat, ventilation, air
conditioning, lighting, electric power, domestic hot and cold (or temperate) running water, and janitor service in the Common
Areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a general directory board
on which the Tenant shall be entitled to have its name shown, but the Landlord shall have exclusive control thereof and of the area thereon
to be allocated to each tenant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) maintenance, repair, and
replacement as set out in section 7.5.

**7.5** **Maintenance, Repair and Replacement** 

The Landlord shall operate, maintain, repair and replace the systems, facilities and equipment necessary for the proper operation of the Building and for provision of the Landlord's services under sections 7.3 and 7.4 (except such as may be installed by or be the property of the Tenant), and shall be responsible for and shall expeditiously maintain and repair the foundations, structure and roof of the Building provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if all or part of such
systems, facilities and equipment are destroyed, damaged or impaired, the Landlord shall have a reasonable time in which to complete
the necessary repair or replacement, and during that time shall be required only to maintain such services as are reasonably possible
in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Landlord may temporarily
discontinue such services or any of them at such times as may be necessary due to causes beyond the reasonable control of the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Landlord shall use
reasonable diligence in carrying out its obligations under this section 7.5, but shall not be liable under any circumstances for any
consequential damage to any Person or property for any failure to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no reduction or discontinuance
of such services under this section 7.5(a) or (b) shall be construed as an eviction of the Tenant or (except as specifically provided
in this Lease) release the Tenant from any obligation of the Tenant under this Lease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) nothing contained herein
shall derogate from the provisions of Article 17.

**7.6** **Additional Services** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Tenant shall pay to the Landlord the costs of
 all services provided by the Landlord to the Tenant (plus an administrative charge of 15% of such costs), other than services
 supplied by the Landlord and charged as Occupancy Costs. Such services shall include services performed at the Tenant's
 request or otherwise provided for herein including, without limitation: (a) the provision of processed air, electricity and other
 utilities and services outside of Normal Business Hours or of a special nature or in excess quantities; (b) replacement of
 non-standard electric light fixtures, ballasts, tubes, starters, lamps, light bulbs and controls; (c) special janitorial or cleaning
 services; (d) operating elevators for the sole benefit of the Tenant and supervising the movement of furniture, equipment, freight
 and supplies for the Tenant; and (e) construction of any Leasehold Improvements or other work performed at the request of or on
 behalf of the Tenant. The Tenant shall pay for such services within 30 days of receipt of an invoice for any such
 service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Tenant shall not, without
the Landlord's written consent, install in the Premises equipment (including telephone equipment) which generates sufficient heat to
affect the temperature otherwise maintained in the Premises by the air conditioning system as normally operated. The Landlord may install
supplementary air conditioning units, facilities or services in the Premises, or modify its air conditioning system, as may in the Landlord's
reasonable opinion be required to maintain proper temperature levels and the Tenant shall pay the Landlord within 30 days of receipt
of any invoice for the cost thereof, including installation, operation and maintenance expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Landlord determines
that the use by the Tenant of electricity or any other utility or service in the Premises is disproportionate to the use thereof by other
tenants, the Landlord may separately charge the Tenant for the excess costs attributable to such disproportionate use. At the Landlord's
request, the Tenant shall install and maintain at the Tenant's expense, metering devices for checking the use of any such utility or
service in the Premises. The Tenant shall not be permitted to engage any Person to provide any utility service to the Premises.

**7.7** **Alterations by the Landlord** 

The Landlord may from time to time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) upon providing reasonable
notice to the Tenant of not less than 5 days make repairs, replacements, changes or additions to the structure, systems, facilities and
equipment in the Premises where necessary to serve the Premises or other parts of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) make changes in or additions
to any part of the Building not in or forming part of the Premises; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) change
or alter the location of Common Areas;

provided that in doing so the Landlord shall not disturb or interfere with the Tenant's use and access to the Premises and operation of its business any more than is reasonably necessary in the circumstances and shall repair any damage to the Premises caused thereby.

**7.8** **Access by the Landlord** 

The Tenant shall permit the Landlord to enter the Premises at any time outside of Normal Business Hours and during Normal Business Hours at any time in case of an emergency to examine, inspect, and show the Premises to Persons wishing to lease them, to provide services or make repairs, replacements, changes or alterations as set out in this Lease, and to take such steps, as the Landlord may deem necessary for the safety, improvement or preservation of the Premises or the Development. No such entry shall constitute an eviction or entitle the Tenant to any abatement of Rent.

The Tenant shall permit the Landlord to enter the Premises at any time outside of Normal Business Hours and during Normal Business Hours where no emergency exists at any time, upon providing reasonable notice to the Tenant of not less than 24 hours, where such entry will not unreasonably disturb or interfere with the Tenant's use of the Premises and operation of its business, to examine, inspect, and show the Premises to Persons wishing to lease them in the last six (6) months of the Term, to provide services or make repairs, replacements, changes or alterations as set out in this Lease, and to take such steps, as the Landlord may deem necessary for the safety, improvement or preservation of the Premises or the Development. The Landlord shall whenever possible consult with or give reasonable notice to the Tenant prior to such entry, but no such entry shall constitute an eviction or entitle the Tenant to any abatement of Rent.

**7.9** **Relocation** 

The Landlord shall not have the right, at any time during the Term, to relocate the Tenant anywhere within or outside the Development.

**7.10** **Energy Conservation and Security Policies** 

The Landlord shall be deemed to have observed and performed those things required to be observed and performed pursuant to the terms of this Lease, including those relating to the provision of utilities and services, if in doing so it acts in accordance with a directive, policy or request of a governmental or quasi-governmental authority serving the public interest in the field of energy conservation or security.

**7.11** **Telecommunications** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Landlord shall incur
no expense or liability whatsoever with respect to any aspect of the provision of telecommunication services, including, without limitation,
the cost of installation, service, materials, repairs, maintenance, interruption or loss of telecommunication service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Tenant may utilize
a telecommunication service provider (a "**TSP**") of its choice with the Landlord's prior written consent, but:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) if the TSP is required
to provide or install facilities in the Building in order to enable it to provide service to the Tenant, the Landlord must first determine
that there is sufficient space in, or on the Building for the installation of the TSP's facilities and that the TSP is acceptable to
the Landlord; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if the TSP intends to install,
or has installed or purchased facilities situated in the Building for the purpose of providing telecommunication services to tenants
in the Building, the Landlord may require the TSP to execute and deliver the Landlord's standard form of TSP licence agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Tenant's approved
TSP does not have a point of connection in the Premises, the Tenant may be required to install its own cable and facilities or to purchase
cable and facilities from the Landlord for installation in the communication pathways and risers of the Building for connection to the
Tenant's TSP's facilities in the main terminal room, at the main distribution frame or at other points of connection designated by the
Landlord. In such case: (i) the Tenant may be required to pay access fees; (ii) the Tenant may be required to remove such cable and facilities
and restore any damage caused by the removal, or, at the Landlord's option, to pay the cost of removal and restoration; (iii) the Tenant
will be required to contribute to the costs of riser management incurred by the Landlord; and (iv) the Tenant will be required to abide
by any policies, directions or requirements of any riser manager retained by the Landlord and to pay, in addition, any direct costs invoiced
to the Tenant by the riser manager in respect of plan review charges, inspection charges and other services provided by the riser manager
to the Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If required by the Landlord,
the Tenant shall change its TSP if the licence agreement referred to above in section 7.11(b) is terminated or expires and is not renewed.
The Tenant acknowledges that the Landlord has no obligation to ensure continuation of services by the Tenant's TSP or any other TSP in
the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Landlord may require,
upon 30 days prior written notice, that the Tenant relocate all or any portion of the cables or facilities installed by it.

**7.12** **Redevelopment and Demolition** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Landlord may construct
additional improvements or renovate existing improvements on the Land or on any adjacent land, may renovate the Building and may add
storeys to the Building. Neither the construction, renovation or demolition by the Landlord or any other Person of any improvement on
either the Land or any land adjacent thereto or within the Building, nor the noise, dust, vibration or other inconvenience or the reduction
of light, air or view occasioned by such construction, renovation or demolition shall affect the obligations of the Tenant or result
in any liability of the Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything
contained in this ease, the Landlord may terminate this Lease at any time if it is Landlord's intention to demolish or substantially
renovate the Building. The Landlord will give the Tenant not less than twelve (12) calendar months' notice of such termination.

**ARTICLE 8**

**MAINTENANCE, REPAIR, ALTERATIONS AND IMPROVEMENTS BY TENANTS** 

**8.1** **Condition of Premises** 

Except to the extent that the Landlord is specifically responsible therefor under this Lease, the Tenant shall maintain the Premises and all improvements therein in reasonable good order and condition, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) maintaining the Premises
and cleaning drapes and carpets at reasonable intervals as needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) making repairs, replacements
and alterations as needed, including those necessary to comply with the requirements of any governmental or quasi-governmental authority
having jurisdiction, reasonable wear and tear and damage by fire, lightning and tempest only excepted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) leaving the Premises in
a clean and reasonably tidy condition at the end of each Business Day.

**8.2** **Failure to Maintain Premises** 

If the Tenant fails to perform any obligation under section 8.1, then on not less than 10 days' notice to the Tenant, the Landlord may enter the Premises and perform such obligation without liability to the Tenant for any loss or damage to the Tenant thereby incurred and the Tenant shall pay the Landlord for the cost thereof, plus 15% of such cost for overhead and supervision, within 10 days of receipt of the Landlord's invoice therefor.

**8.3** **Alterations by the Tenant** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Tenant may from time
to time at its own expense make changes, additions and improvements in the Premises to better adapt the same to its business, provided
that any such change,
addition or improvement shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) comply with the requirements
of the Landlord's insurer and any governmental or quasi-governmental authority having jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) comply with the requirements
set forth in Schedule E;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) be made only with the prior
written consent of the Landlord after detailed plans and specifications therefor have been submitted to the Landlord, such consent not
to be unreasonably withheld;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) equal or exceed the then
current standard for the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) be carried out only by
Persons selected by the Tenant and approved in writing by the Landlord. Such Persons shall be compatible with others employed by or through
the Landlord directly or indirectly including the Landlord's other tenants, contractors and subcontractors and their trade union affiliations;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) if required by the Landlord,
deliver to the Landlord before commencement of the work performance and payment bonds as well as proof of workers' compensation and public
liability and property damage insurance coverage, with the Landlord named as an additional insured, in amounts, with companies, and in
form reasonably satisfactory to the Landlord, which shall remain in effect during the entire period in which the work will be carried
out.

Any increase in property taxes or fire or casualty insurance premiums for the Development attributable to such change, addition or improvement shall be borne by the Tenant. In addition, if the Tenant does not use the base building engineers to complete the Tenant's plans, the Tenant shall reimburse the Landlord for any out of pocket costs incurred, plus a 15% administration fee of the costs incurred, as a result of the review of the plans by the Landlord's base building engineers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event any of the
following work is required by the Tenant, it shall be carried out by the Landlord under written contract with the Tenant and at the Tenant's
sole expense under contract to the Landlord only and by agreement in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all approved work relating
to heating, cooling, ventilation, exhaust, control, electrical distribution and life safety systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) patching of Building standard
fireproofing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any drilling, cutting,
coring and patching for conduit, pipe sleeves, chases, duct equipment, or openings in the floors, walls, columns or roofs of the Building
which is approved by the Landlord; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) installation of approved
modifications to the sprinkler system.

**8.4** **Trade Fixtures and Personal Property** 

The Tenant may install in the Premises its usual trade fixtures and personal property in a proper manner, provided that no such installation shall interfere with or damage the mechanical or electrical systems or the structure of the Building.

**8.5** **Builder's Liens** 

The Tenant shall pay before delinquency all costs for work done or caused to be done by the Tenant in the Premises which could result in any lien or encumbrance being placed on the Landlord's interest in the Development or any part thereof, shall keep the title to the Development and every part thereof free and clear of any lien or encumbrance in respect of such work, and shall indemnify and hold harmless the Landlord against any claim, loss, cost, demand and legal or other expense, whether in respect of any lien or otherwise, arising out of the supply of material, services or labour for such work. The Tenant shall immediately notify the Landlord of any such lien, claim of lien or other action of which it has or reasonably should have had knowledge of and which affects the title to the Development or any part thereof, and shall cause the same to be removed within five days (or such additional time as the Landlord may consent to in writing), failing which the Landlord may take such action as the Landlord deems necessary to remove the same and the entire cost thereof shall be immediately due and payable by the Tenant to the Landlord.

**8.6** **Signs** 

The Tenant, and its Permitted Occupants, as defined in Schedule G, have the right to have its name displayed on the main lobby directory board for the Building, on the floor lobby directory board on each floor on which the Premises are located and on the main door to the Premises, all such signs to be at the Tenant's expense and to be under the exclusive control of the Landlord and to conform to the uniform pattern of identification signs for tenants of the Building prescribed by the Landlord.

If the Premises constitute one or more full floors of the Building, the Tenant has the right to have a sign displaying the name of the Tenant in the elevator lobby of each such floor, at the Tenant's expense, provided that the design of the sign has been approved by the Landlord.

**8.7** **Normal Business Hours** 

Except as otherwise specifically provided in this Lease or by written notice from the Landlord to the Tenant, Normal Business Hours for the Building shall be from 6:00 a.m. to 6:00 p.m. Monday through Friday excluding days which are not Business Days.

**ARTICLE 9**

**TAXES** 

**9.1** **The Landlord's Real Estate Taxes** 

The Landlord shall pay before delinquency (subject to participation by the Tenant by payment of Occupancy Costs) the Real Estate Taxes and other charges (except for the Tenant's taxes under sections 9.2 and 9.3), which is imposed, levied, assessed or charged by any governmental or quasi-governmental authority having jurisdiction and which is payable upon or on account of the Development, during the Term.

**9.2** **The Tenant's Real Estate Taxes** 

The Tenant shall pay before delinquency every tax, assessment, license or privilege fee, excise, gross receipts or sales tax and other charge, however described, which is imposed, levied, assessed or charged by any governmental or quasi-governmental authority having jurisdiction and which is payable in respect of the Term upon or on account of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) operations at, occupancy
of, or conduct of business from the Premises by or with the permission of the Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) fixtures or personal property
in the Premises which do not belong to the Landlord; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Rent paid or payable
or reserved by the Tenant to the Landlord for the Premises or for the use and occupancy of all or any part thereof,

provided that if the Landlord so elects by notice to the Tenant, the Tenant shall add any amounts payable under this section 9.2 to the monthly instalments of Basic Rent payable under section 5.1 and the Landlord shall remit such amounts to the appropriate authorities.

**9.3** **Goods and Services Taxes** 

The Tenant specifically acknowledges and agrees that as part of its Occupancy Costs payable under this Lease, the Tenant shall pay to the Landlord any multi stage sales, sales, use, consumption, value added, GST or other similar taxes imposed by the Government of Canada, or by any provincial or local government upon the Landlord or the Tenant or in respect of this Lease, the payments made by the Tenant (whether Basic Rent, Occupancy Costs or otherwise) for the goods and services provided by the Landlord hereunder including, without limitation, the rental of the Premises or administrative services provided to the Tenant or to tenants generally. In addition, the Tenant shall also reimburse and indemnify the Landlord for the Tenant's Pro rata Share of amounts paid by the Landlord as or on account of such taxes in respect of any goods or services acquired by the Landlord for the purpose of this Lease. Amounts payable by the Tenant under this section from time to time shall be paid when Occupancy Costs under this Lease are payable, together with an administration fee in such amount as shall be standard from time to time in office building industry, as determined by the Landlord, acting reasonably, and which is permitted by applicable legislation to cover the Landlord's costs in allocating and administering the collection of such tax.

**9.4** **Right to Contest** 

The Landlord and the Tenant shall each have the right to contest in good faith the validity or amount of any tax, assessment, license fee, excise fee and other charge which it is responsible to pay under this Article 9, provided that no contest by the Tenant may involve the possibility of forfeiture, sale or disturbance of the Landlord's interest in the Premises and that upon the final determination of any contest by the Tenant, the Tenant shall immediately pay and satisfy the amount found to be due, together with any costs, penalties and interest.

**ARTICLE 10** 

**INSURANCE**

**10.1** **The Landlord's Insurance** 

During the Term, the Landlord shall take out and maintain (subject to participation by the Tenant by payment of Occupancy Costs) comprehensive general liability insurance, "All Risks" property insurance, comprehensive boiler and machinery insurance, and such other insurance on the Development as the Landlord shall deem necessary with coverage and in amounts not less than those which are from time to time acceptable to a prudent owner in the area in which the Development is located. The Tenant agrees that notwithstanding the Tenant contributes to the cost of the Landlord's insurance with respect to the Development, the Tenant shall not have any insurable interest in, or any right to recover any proceeds under any of the Landlord's insurance policies and the Tenant shall not be relieved of any liability arising from or contributed to by its acts, fault, negligence or omissions.

**10.2** **The Tenant's Insurance** 

During the Term, the Tenant shall take out and maintain at its own expense:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "All Risks" property insurance, including
Perils of Flood and Earthquake, in amounts sufficient to fully cover the Tenant's improvements and all property in the Premises
which is not owned by the Landlord on a full replacement cost basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) commercial general liability
insurance, including bodily injury, contractual liability and broad form property damage liability coverage for damages to any property,
with a minimum combined single limit of $5,000,000.00 per occurrence, with the Landlord, its manager and Mortgagee, if any, named as
an additional insured;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) intentionally deleted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) intentionally deleted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Tenant's legal liability
insurance on an "all risk" basis for the full replacement cost of the Premises including Leasehold Improvements, and the
loss of use thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any other form of insurance
that the Tenant, or the Landlord, acting reasonably, requires in amounts and for insurance risks against which a prudent tenant would
insure.

**10.3** **Form of Tenant Policies** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With
 respect to the form of the Tenant's insurance policies in Section 10.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each policy shall be in
a form and with an insurer reasonably acceptable to the Landlord and shall require at least thirty days written notice to the Landlord
of termination or material alteration of the policy during the Term;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the insurance described
in Section 10.2(a) and any other property damage insurance shall include, as additional insureds (but without liability for premiums)
as its interests may appear the Landlord, any Mortgagee and other Persons with an interest in the Development from time to time designated
in writing by the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the insurance described
in Section 10.2(b) shall include as additional insureds (but without liability for premiums) the Landlord, any Mortgagee, any other Persons
with an interest in the Development from time to time designated in writing by the Landlord and any property manager or facilities manager
retained by the Landlord in respect of the Development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) contain a standard mortgage
clause if required by a Mortgagee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all property damage and
liability insurance shall contain provisions for cross-liability and severability of interests among the Landlord, the other insureds
and the Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all property damage insurance
(including boiler and machinery insurance) shall contain a waiver of any rights of subrogation which the insurer may have against the
Landlord and those for whom the Landlord is in law responsible whether the damage is caused by the act, omission or negligence of the
Landlord or such other Persons; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) shall contain a provision
that the **Tenant's insurance shall be primary and** shall not call into contribution any other insurance available to the Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If requested by the Landlord,
the Tenant shall from time to time promptly deliver to the Landlord, certified copies or other evidence of such policies, and evidence
satisfactory to the Landlord that all premiums thereon have been paid and the policies are in full force and effect.

**10.4** **Placement of the Tenant's Insurance By the Landlord** 

If the Tenant fails to take out, renew or keep in force any of the policies of insurance required to be taken out and maintained by the Tenant under section 10.2, the Landlord may do so as agent of the Tenant and the Tenant shall reimburse the Landlord any amount so paid by the Landlord as agent of the Tenant promptly upon demand by the Landlord.

**10.5** **Insurance Risks** 

The Tenant shall not do, omit to do, or permit to be done or omitted to be done upon the Premises or any other portion of the Development anything that may contravene or be prohibited **by any of the Landlord's insurance policies in force from time to time** covering or relevant to any part of the Development or which would prevent the Landlord from procuring such policies with companies acceptable to the Landlord. If the occupancy of the Premises, the conduct of business in the Premises or any acts or omissions of the Tenant in the Premises or any other portion of the Development **causes or results in any increase in premiums for any of the Landlord's insurance** policies, then, without limiting any other rights or remedies of the Landlord, the Tenant shall pay any such increase as Additional Rent forthwith upon receipt of the invoices of the Landlord for such additional premiums. A written report by an Expert concerning the cause of any increase in premiums will be accepted as conclusive evidence of the cause for the purposes of determining the Tenant's liability to pay for increases as Additional Rent.

**ARTICLE 11** 

**INJURY TO PERSON OR PROPERTY**

**11.1** **Indemnity by the Tenant** 

The Tenant shall be liable for and hereby indemnifies and holds harmless the Landlord from and against every demand, claim, cause of action, judgment and expense (including legal fees and disbursements on a solicitor and own client full indemnity basis), including all losses and damage (the "Landlord's Claims") arising from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any injury or damage to
the person or property of the Tenant, any other tenant in the Development or to any other Person rightfully in the Development, where
the injury or damage is caused by negligence or misconduct of the Tenant, its agents, servants or employees, or of any other Person entering
upon the Premises under express or implied invitation of the Tenant, or results from the violation of laws or ordinances, governmental
orders of any kind or of the provisions of this Lease by any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any loss or damage, however
caused, to books, records, files, money, securities, negotiable instruments or papers in or about the Premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any loss or damage resulting
from interference with or obstruction of deliveries to or from the Premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any injury or damage not
specified above to the person or property of the Tenant, its agents, servants or employees, or any other Person entering upon the Development
or the Premises under express or implied invitation of the Tenant, where the injury or damage is caused by any reason

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any occurrence in, on or
at the Premises or the occupancy or use by the Tenant of the Premises or any other part of the Development or occasioned wholly or in
part by any act or omission of the Tenant, its officers, employees, agents, contractors, invitees, licensees or by any Person permitted
by the Tenant to be on the Premises; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the failure by the Tenant
to perform its obligations under this Lease or any other agreement with the Landlord.

**11.2** **Release of the Landlord** 

The Tenant hereby releases the Landlord from any and all claims, actions, causes of action, damages, demands for damages and other liabilities, howsoever arising (the "Tenant's Claims"), that may be made by the Tenant against the Landlord under the provisions of this Lease to the extent that the Tenant's Claims would be covered by the policies of insurance the Tenant is obliged to maintain under this Lease if the Tenant had maintained such policies. In addition and without limitation, the Tenant agrees that the Landlord shall not be liable for and hereby releases the Landlord from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any and all claims, actions,
causes of action, damages, demands for damages and other liabilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for or related to any bodily
injury, personal injury, illness or discomfort to or death of the Tenant or any of its agents, officers, contractors, employees, invitees,
licensees and any other Person for whom the Tenant is legally responsible in or about the Building or the Premises; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) for or related to any loss
or damage to property owned by the Tenant or by others and for which property the Tenant is responsible in or about the Building or the
Premises, and, without limiting the generality of the foregoing, the Landlord shall not be liable for any damage caused by steam, water,
rain or snow which may leak into, issue or flow from part of the Building, including the Premises, or from the pipes or plumbing works
thereof, or from any other place or for any damage caused by or attributable to the condition or arrangement of any electric or other
wiring;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any loss or damage caused
as a result of any damage, destruction, construction, alteration, expansion, expropriation, reduction, repair or reconstruction from
time to time of the Building, any parts or components of the Building or of improvements on adjoining properties or by anything done
or omitted to be done by any other tenant or occupant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any act or omission (including
theft, malfeasance or negligence) on the part of any agent, contractor or Person from time to time employed by the Landlord to perform
janitorial services, security services, supervision or any other work in or about the Premises or the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any loss or damage,
however caused, to books of account, records, files, money,securities, negotiable instruments, papers, computer disks, tapes, software,
data and other electronic files and their storage media of any kind or to other valuables of the Tenant including art, artworks, statuary,
antiques, gems and precious metals of the Tenant and of others;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any loss or damage arising
from obstruction of deliveries to or from the Premises or interruption, cessation, faulty operation, breakdown or failure of any Building
Systems, including but not limited to, the supply of any utilities, telecommunication services (whether controlled or owned by the Landlord
or not) or other services in, to or serving the Building or the Premises, whether they are supplied by the Landlord or by others; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any indirect or consequential
damages including, but not limited to, loss of profit.

**ARTICLE 12<br> TRANSFERS BY THE TENANT**

**12.1** **Transfers by the Tenant** 

The Tenant shall not enter into, consent to, or permit any Transfer without the prior written consent of the Landlord, which consent shall not be unreasonably withheld but shall be subject to the Landlord's rights under section 12.2. The Tenant shall pay to the Landlord its then current reasonable charge and all costs incurred (including legal fees and disbursements on a solicitor and own client basis) in respect of the proposed Transfer. Notwithstanding any statutory provision to the contrary, it shall not be considered unreasonable for the Landlord to withhold its consent if, without limiting any other factors or circumstances which the Landlord may reasonably take into account:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) an Event of Default on
the part of the Tenant hereunder has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the proposed Transfer would
be or could result in violation or breach of any covenants or restrictions made or granted by the Landlord to other tenants or occupants,
or prospective tenants or occupants, of the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in the Landlord's reasonable
opinion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) either the financial background
or the business history and capability of the proposed Transferee is not satisfactory;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the nature or character
of the proposed business of the proposed Transferee is such that it might harm the Landlord's business or reputation or reflect unfavourably
on the Building, the Landlord, or other tenants of the Building, or the image of any of them, or is unethical, immoral or illegal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the use of the Premises
by the proposed Transferee could be incompatible with the other businesses or activities being carried on in the Building or could result
in excessive demands being placed on the Building Systems or other Common Areas; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if the Transfer affects
less than all of the Premises, the portion affected or the portion remaining are not acceptable in respect of size, access or configuration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the proposed Transferee
or any principal of the proposed Transferee or any principal shareholder of the proposed Transferee has a history of defaults under other
commercial leases or does not have a satisfactory history of compliance with laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) intentionally deleted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) intentionally deleted;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the proposed Transfer is
to: (i) an existing tenant or occupant of the Development or of any other building owned or managed by the Landlord or any of
its affiliates within the same market area as determined by the Landlord; or (ii) a consulate, embassy, trade commission or other representative
of a foreign government; (iii) a government, quasi-government or public agency, service or office; or (iv) a Transferee that has a retail
component to its business.

Any consent by the Landlord to a Transfer shall not constitute a waiver of the necessity for the Landlord's consent to any subsequent Transfer.

**12.2** **Tenant's Notice, Landlord's Right to Terminate or Sublet** 

If the Tenant intends to effect a Transfer the Tenant shall give prior notice to the Landlord of such intent specifying the identity of the Transferee, the type of Transfer contemplated, the part of the Premises affected and the financial and other terms of the Transfer, and shall provide such financial, business or other information relating to the proposed Transferee and its principals as the Landlord or any Mortgagee reasonably requires, together with copies of all documents which record the particulars of the proposed Transfer. The Landlord shall, within 15 days after having received such notice and all requested information, notify the Tenant either that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it consents or does not
consent to the Transfer in accordance with the provisions of this Lease; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) intentionally deleted;
or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) it elects to terminate
this Lease as to the part of the Premises affected by the proposed Transfer, or as to the whole Lease and Premises if the proposed Transfer
affects all of the Premises.

If the Landlord elects to terminate this Lease it shall stipulate in its notice the termination date of this Lease, which date shall be the date of possession contemplated under the proposed Transfer (provided that if such date is less than 30 days following the giving of notice of such election, the Landlord may elect to have the termination date 30 days following the giving of notice). If the Landlord elects to terminate this Lease, the Tenant may notify the Landlord within ten days following receipt of such notice of the Tenant's intention to refrain from such Transfer and, if the Tenant provides such notice within such time period, then the Landlord's election to terminate this Lease shall become void. If the Tenant fails to deliver such notice within such time period, then this Lease shall, as to the whole or affected part of the Premises, as the case may be, be terminated on the date of termination stipulated by the Landlord in its notice of election to terminate. If the Tenant is required to deliver possession of a part only of the Premises, the Tenant shall pay all costs incurred in connection with rendering that part functionally separate and suitable for separate use and occupancy, including partitioning and providing entrances and services.

**12.3** **Conditions of Transfer** 

The following terms and conditions apply in respect of a Transfer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Tenant and the Transferee
shall execute, prior to the Transfer being made, an agreement with the Landlord in the Landlord's form including the Transferee's covenant
to be bound by all of the terms of this Lease and to amend the Lease to incorporate such terms, covenants and conditions as are necessary
so that the Lease will be in accordance with the Landlord's standard form of lease in use for the Building at the time of the Transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) notwithstanding any Transfer,
the Tenant shall remain liable under this Lease and shall not be released from performing any of the terms of this Lease. The Tenant's
liability shall continue notwithstanding any amendment of this Lease throughout the Term and any exercise of any renewal or extension
of the Term provided for herein, regardless of whether or when an amendment of this Lease is made (however the original Tenant's liability
will not be increased by any amendment that it is not a party to) and notwithstanding that the Landlord may collect rent from the Transferee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the basic and additional
rent (net of reasonable out of pocket costs for improving and subleasing any sub-premises, leasehold improvements, demising costs, commissions,
professional advisory fees, real estate fees, other associated costs, cash allowances and for alterations required by and made for the
Transferee by the Tenant, amortized on a straight line basis over the term of the Transfer) to be paid by the Transferee under such Transfer
exceeds the Basic Rent and Additional Rent payable by the Tenant hereunder, the amount of such excess shall be paid by the Tenant to
the Landlord. If the Tenant receives from any Transferee, either directly or indirectly, any consideration other than basic rent or additional
rent for such Transfer, either in the form of cash, goods or services, the Tenant shall immediately pay to the Landlord an amount equivalent
to such consideration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if the Transfer is a sublease,
the Transferee will agree to waive any statutory or other right to apply to a court or to otherwise elect to: (i) retain the unexpired
term of the Lease or the unexpired term of the sublease; (ii) obtain any right to enter into any lease or other agreement directly with
the Landlord; or (iii) otherwise remain in possession of any portion of the Premises, in any case where the Lease is terminated, surrendered
or otherwise cancelled, including, without limitation, any disclaimer, repudiation, surrender or other termination (each of these transactions
being referred to as an **"Early Termination")** by any trustee in bankruptcy of the Tenant or a Transferee, by any court
appointed officer, or by the Tenant or a Transferee in connection with any insolvency proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) if there is an Early Termination,
the Tenant and any Transferee (except the bankrupt or insolvent Tenant or Transferee) to whom the Landlord gives notice within 60 days
after the Early Termination, shall be considered to have entered into a lease with the Landlord on the same terms and conditions as are
contained in this Lease except that the term of the lease shall commence on the date of the Early Termination and shall expire on the
date this Lease would have expired but for the Early Termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) notwithstanding the effective
date of any permitted Transfer as between the Tenant and the Transferee, all Rent for the month in which such effective date occurs shall
be paid in advance by the Tenant so that the Landlord will not be required to accept partial payments of Rent for such month from either
the Tenant or the Transferee.

**12.4** **Corporate Records** 

Upon the Landlord's reasonable request, the Tenant shall: (a) deliver a statutory declaration by one of its senior officers setting forth the details of its corporate and capital structure; and (b) make available to the Landlord or its representatives all of its corporate or partnership records, as the case may be, for inspection at all reasonable times, in order to ascertain whether any Change of Control has occurred.

**12.5** **Permitted Transfers** 

Notwithstanding section 12.1 and provided that the Required Conditions are satisfied and the business of the Permitted Transferee is the same or substantially the same as the originally named Tenant, the Tenant shall have the right on thirty (30) days prior notice to the Landlord, but without being required to obtain the Landlord's consent, to effect a Transfer in compliance with section 12.3 in favour of a Permitted Transferee and the Landlord's right to terminate shall not apply to such a Transfer. A Transfer to a Permitted Transferee shall not be effective until such time as all of the requirements of section 12.3 are complied with and the Tenant has: (i) furnished the Landlord with copies of all articles and additional information that the Landlord may reasonably require to satisfy itself concerning relevant information pertaining to the requirement or non-requirement for the Landlord's consent; and (ii) the assignee or sublessee shall carry on in the Premises only the use permitted under this Lease. The rights under this section 12.5 are personal to the originally named Tenant and any Permitted Transferee and are not otherwise transferable.

**12.6** **No Advertising** 

The Tenant shall not advertise that the whole or any part of the Premises are available for a Transfer and shall not permit any broker or other Person to do so unless the text and format of such advertisement is approved in writing by the Landlord. No such advertisement shall contain any reference to the rental rate of the Premises.

**ARTICLE 13**

**SURRENDER**

**13.1** **Possession** 

At the expiration or earlier termination of the Term, the Tenant shall peaceably surrender and yield up to the Landlord the Premises and all Leasehold Improvements in good and substantial repair and condition in accordance with its covenants to maintain and repair the Premises. Notwithstanding anything contained in this section 13.1, upon the expiration of the Term and at the Tenant's cost, the Tenant shall remove all or any part of the non-typical leasehold improvements, including IT/data cabling and trade fixtures as may be required by the Landlord in accordance with Schedule E.

**13.2** **Merger** 

The voluntary or other surrender of the Lease by the Tenant or the cancellation of the Lease by mutual agreement of the Tenant and the Landlord shall not work as a merger, and shall at the Landlord's option terminate all or any subleases. The Landlord's option hereunder shall be exercised by notice to the Tenant and all known subtenants in the Premises or any part thereof.

**13.3** **Payments After Termination** 

No payments of money by the Tenant to the Landlord after the expiration or other termination of the Term or after giving of any notice (other than a demand for payment of money) by the Landlord to the Tenant, shall reinstate, continue or extend the Term or make ineffective any notice given to the Tenant prior to the payments of such money. After the service of notice or the commencement of a suit, or after final judgment granting the Landlord possession of the Premises, the Landlord may receive and collect any sums of Rent due under this Lease, and the payment thereof shall not make ineffective any notice, or in any manner affect any pending suits or any judgment therefore obtained.

**ARTICLE 14<br> HOLDING OVER**

**14.1** **Month-to-Month Tenancy** 

The Tenant has no right to remain in possession of the Premises after the end of the Term aside from the Extension Option provided under the attached <u>Schedule G</u>. If the Tenant remains in possession of the Premises after the end of the Termwith the consent of the Landlord but without exercising the Extension Option, or without entering into a new lease or other agreement then, notwithstanding any statutory provisions or legal presumption to the contrary, there shall be no tacit renewal of this Lease or the Term and the Tenant shall be deemed to be occupying the Premises as a tenant from month-to-month (with either party having the right to terminate such month-to-month tenancy at any time on 30 days' notice, whether or not the date of termination is at the end of a rental period) at a monthly Basic Rent payable in advance on the first day of each month equal to 150% of the monthly amount of Basic Rent payable during the last month of the Term and otherwise upon the same terms, covenants and conditions as in this Lease insofar as these are applicable to a monthly tenancy and, for greater certainty, including liability for all Additional Rent.

**14.2** **Tenancy at Sufferance** 

If, without the Landlord's written consent, the Tenant remains in possession of the Premises after the expiration or other termination of the Term, the Tenant shall be deemed to be occupying the Premises upon a tenancy at sufferance only, at a monthly rental equal to two times the Rent determined in accordance with Article 5. Such tenancy at sufferance may be terminated by the Landlord at any time by notice of termination to the Tenant and by the Tenant on the last day of any calendar month by at least 30 days advance notice of termination to the Landlord.

**14.3** **General** 

Any month-to-month tenancy or tenancy at sufferance hereunder shall be subject to all other terms and conditions of the Lease except any right of renewal or extension and nothing contained in this Article 14 shall be construed to limit or impair any of the Landlord's rights of reentry or eviction or constitute a waiver thereof.

**ARTICLE 15<br> RULES AND REGULATIONS**

**15.1** **Purpose** 

The rules and regulations set forth in Schedule D have been adopted by the Landlord for the safety, benefit and convenience of all tenants and other Persons in the Development.

**15.2** **Observance** 

The Tenant shall, at all times, comply with, and shall cause its employees, agents, licensees and invitees to comply with, such rules and regulations attached as Schedule D hereto and such further and other reasonable rules and regulations and amendments and changes thereto as may be made by the Landlord and notified to the Tenant by mailing a copy thereof to the Tenant or by posting same in a conspicuous place in the Development. All such rules and regulations now or hereafter in force shall be read as forming part of this Lease.

**15.3** **Non-Compliance** 

The Landlord shall use its best efforts to secure compliance by all tenants and other Persons with such rules and regulations from time to time in effect, but shall not be responsible to the Tenant for failure of any Person to comply with such rules and regulations.

**15.4** **Loading and Unloading** 

The delivery and shipping of merchandise, supplies, fixtures, and other materials or goods of whatsoever nature to or from the Premises and all loading, unloading, and handling thereof shall be done only at such times, in such areas, by such means, and through such elevators, entrances, malls and corridors as are designated by the Landlord.

**ARTICLE 16<br> EXPROPRIATION**

**16.1** **Taking of Premises** 

If during the Term all of the Premises shall be taken for any public or quasi-public use under any statute or by right of expropriation, or purchases under threat of such taking, this Lease shall automatically terminate on the date on which the expropriating authority takes possession of the Premises (hereinafter called the **"date of such taking").**

**16.2** **Partial Taking of Development** 

If during the Term only part of the Development is taken or purchased as set out in section 16.1, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if in the reasonable opinion
of the Landlord substantial alteration or reconstruction of the Building is necessary or desirable as a result thereof, whether or not
the Premises are or may be affected, the Landlord shall have the right to terminate this Lease by giving the Tenant at least 30 days
written notice of such termination, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if more than one third
of the number of square feet in the Premises is included in such taking or purchase, the Landlord and the Tenant shall each have the
right to terminate this Lease by giving the other at least 30 days written notice thereof.

If either party exercises its right of termination hereunder, this Lease shall terminate on the date stated in the notice, provided however, that no termination pursuant to notice hereunder may occur later than 60 days after the date of such taking.

**16.3** **Surrender** 

On any such date of termination under sections 16.1 or 16.2, the Tenant shall immediately surrender to the Landlord the Premises and all interest therein under this Lease. The Landlord may re-enter and take possession of the Premises and remove the Tenant therefrom, and the Rent shall abate on such date in respect of the portion taken. After such termination, and on notice from the Landlord stating the Rent then owing, the Tenant shall forthwith pay the Landlord such Rent.

**16.4** **Partial Taking of Premises** 

If any portion of the Premises (but less than the whole thereof) is so taken, and no rights of termination herein conferred are timely exercised, the Term of the Lease shall expire with respect to the portion so taken on the date of such taking. In such event the Rent payable hereunder with respect to such portion so taken shall abate on such date, and the Rent thereafter payable with respect to the remainder not so taken shall be adjusted pro rata by the Landlord in order to account for the resulting reduction in the number of square feet in the Premises.

**16.5** **Awards** 

Upon any such taking or purchase, the Landlord shall be entitled to receive and retain the entire award or consideration for the affected lands and improvements, and the Tenant shall not have nor advance any claim against the Landlord for the value of its property or its leasehold estate or the unexpired Term of the Lease, or for costs of removal or relocation, or business interruption expense or any other damages arising out of such taking or purchase. Nothing herein shall give the Landlord any interest in or preclude the Tenant from seeking and recovering on its own account from the condemning authority any award or compensation attributable to the taking or purchase of the Tenant's improvements, chattels or trade fixtures, or the removal or relocation of its business. If any such award made or compensation paid to either party specifically includes an award or amount for the other, the party first receiving the same shall promptly account therefore to the other.

**ARTICLE 17**

**DAMAGE BY FIRE OR OTHER CASUALTY**

**17.1** **Limited Damage to Premises** 

If all or part of the Premises are rendered untenantable by damage from fire or other casualty which, in the reasonable opinion of the Architect, can be substantially repaired under applicable laws and government regulations within 180 days from the date of such casualty (employing normal construction methods without overtime or other premium), the Landlord and the Tenant, as the case may be, according to the nature of the damage and their respective obligations to repair, shall repair the damage with all reasonable diligence.

**17.2** **Major Damage to Premises** 

If all or part of Premises are rendered untenantable by damage from fire or other casualty which, in the reasonable opinion of the Architect cannot be substantially repaired under applicable laws and governmental regulations within 180 days from the date of such casualty (employing normal construction methods without overtime or other premium), then either the Landlord or the Tenant may elect to terminate this Lease as of the date of such casualty by written notice delivered to the other not more than 10 days after receipt of the Architect's opinion, failing which the Landlord or the Tenant, as the case may be, according to the nature of the damage and their respective obligations under this Lease, shall repair such damage with all reasonable diligence.

**17.3** **Abatement** 

If the Landlord is required to repair damage to all or part of the Premises under sections 17.1 or 17.2 the Rent payable by the Tenant hereunder shall be proportionately reduced to the extent that the Premises are thereby rendered unusable by the Tenant in its business, from the date of such casualty until 5 days after completion by the Landlord of the repairs to the Premises (or the part thereof rendered untenantable) or until the Tenant again uses the Premises (or the part thereof rendered untenantable) in its business, whichever first occurs.

**17.4** **Major Damage to Building** 

If all or a substantial part (whether or not including the Premises) of the Building is rendered untenantable by damage from fire or other casualty to such a material extent that in the reasonable opinion of the Landlord the Building must be totally or partially demolished or reconstructed whether or not to be reconstructed in whole or in part, the Landlord may elect to terminate this Lease as of the date of such casualty (or on the date of notice if the Premises are unaffected by such casualty) by written notice delivered to the Tenant not more than 60 days after the date of such casualty, in which event:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Tenant shall deliver
up possession of the Premises to the Landlord within 30 days after delivery of the notice of termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Rent shall be apportioned
and paid to the date upon which possession has been delivered up,

but otherwise, the Landlord or the Tenant, as the case may be, according to the nature of the damage and their respective obligations under this Lease, shall repair such damage with all reasonable diligence.

**17.5** **Limitation on the Landlord's Liability** 

Except as specifically provided in this Article 17, there shall be no reduction of Rent and the Landlord shall have no liability to the Tenant by reason of any injury to or interference with the Tenant's business or property arising from fire or other casualty, howsoever caused, or from the making of any repairs resulting therefrom in or to any portion of the Building or the Premises. Notwithstanding anything contained herein, Rent payable by the Tenant hereunder shall not be abated, if the damage is caused by any act or omission of the Tenant, its agents, servants, employees or any other Person entering upon the Premises under express or implied invitation of the Tenant.

**ARTICLE 18<br> TRANSFERS BY LANDLORD**

**18.1** **Sale, Conveyance and Assignment** 

Nothing in this Lease shall restrict the right of the Landlord to sell, convey, assign or otherwise deal with the Development, subject only to the rights of the Tenant under this Lease.

**18.2** **Effect of Sale, Conveyance or Assignment** 

A sale, conveyance or assignment (collectively, the "disposition") of the Development or part thereof shall operate to release the Landlord from liability from after the effective date of such disposition upon the assumption by the transferee under such disposition of all the covenants, terms and conditions of this Lease from and after the effective date of such disposition except as such may relate to the period prior to such effective date of such disposition, and the Tenant shall thereafter look solely to such transferee in respect of matters arising under this Lease in respect of the period arising after the effective date of such disposition. This Lease shall not be affected by any such disposition, and the Tenant shall attorn to the transferee of such disposition.

**18.3** **Subordination** 

This Lease is and shall be subject and subordinate in all respects to any and all Mortgages and leasehold interests now or hereafter placed on the Development, and to all renewals, modifications, consolidations, replacements and extensions thereof.

**18.4** **Attornment** 

If the interest of the Landlord is transferred to any Person (the **"Purchaser")** by reason of foreclosure or other proceedings for enforcement of any such mortgage, or by delivery of a deed in lieu of such foreclosure or other proceedings, the Tenant shall immediately and automatically attorn to Purchaser.

**18.5** **Effect of Attornment** 

Upon attornment under section 18.4 this Lease shall continue in full force and effect as a direct lease between Purchaser and the Tenant, upon all of the same terms, conditions and covenants as are set forth in the Lease except that, after such attornment, Purchaser shall not be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) liable for any act or omission
of the Landlord; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) subject to any offsets
or defenses which the Tenant might have against the Landlord; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) bound by any prepayment
by the Tenant of more than one month's instalment of Rent, or by any previous modification of the Lease, unless such prepayment or modification
shall have been approved in writing by Purchaser or any predecessor in interest except the Landlord.

**18.6** **Execution of Instruments** 

The subordination and attornment provisions of this Article 18 shall be self operating and no further instrument shall be required. Nevertheless the Tenant, on request by and without cost to the Landlord or any successor in interest, shall execute and deliver any and all instruments further evidencing such subordination and (where applicable hereunder) attornment.

**ARTICLE 19<br> NOTICES, ACKNOWLEDGEMENTS, AUTHORITIES FOR ACTION**

**19.1** **Notices** 

Any notice from one party to the other hereunder shall be in writing and shall be deemed duly served if delivered personally, faxed or emailed to a responsible employee of the party being served, or if mailed by registered or certified mail addressed to the Tenant at the Premises (whether or not the Tenant has departed from, vacated or abandoned the same) or to the Landlord at c/o Aspen Property Management Limited Partnership, 1800, 140 - 4th Avenue SW, Calgary, Alberta, T2P 3N3, attention: Property Manager, or any other place from time to time established for the payment of Rent. Any notice shall be deemed to have been given at the time of personal delivery, fax or email or, if mailed, seven days after the date of mailing thereof. Either party shall have the right to designate by notice, in the manner above set forth, a different address to which notices are to be mailed.

**19.2** **Acknowledgements** 

Upon the request of the Landlord the Tenant shall execute and deliver within 10 days of such request a certificate in the form provided by the Landlord certifying, amongst other things and without limitation, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this Lease is in full force
and effect, subject only to such modification (if any) as may be set out therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Tenant is in possession
of the Premises and paying Rent as provided in this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the dates (if any) to which
Rent is paid in advance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) that there are not, to
the Tenant's knowledge any uncured defaults on the part of the Landlord hereunder, or specifying such defaults if any are claimed.

Any such certificate may be relied upon by any prospective transferee or encumbrancer of all or any portion of the Development, or any assignee of any such Persons. If the Tenant fails to timely deliver such statement, the Tenant shall be deemed to have acknowledged that this Lease is in full force and effect, without modification except as may be represented by the Landlord, and that there are no uncured defaults in the Landlord's performance.

**19.3** **Authorities for Action** 

The Landlord may act in any matter provided for herein by its property manager and any other Person who shall from time to time be designated by the Landlord by notice to the Tenant. The Tenant shall designate in writing one or more Persons to act on its behalf in any matter provided for herein and may from time to time change, by notice to the Landlord, such designation. In the absence of any such designation, the Person or Persons executing this Lease for the Tenant shall be deemed to be authorized to act on behalf of the Tenant in any matter provided for herein.

**ARTICLE 20**

**DEFAULT**

**20.1** **Interest and Costs of Lease of Space** 

The Tenant shall pay to the Landlord interest at the Stipulated Rate, calculated and compounded monthly, upon all Rent required to be paid hereunder from the due date for payment thereof until the same is fully paid and satisfied. The Tenant shall indemnify the Landlord against all costs, charges (including legal fees and disbursements on a solicitor and his own client basis) lawfully and reasonably incurred in enforcing payment thereof, and in obtaining possession of the Premises after default of the Tenant or upon expiration or earlier termination of the Term of this Lease, or in enforcing covenant, provision or agreement of the Tenant herein contained.

**20.2** **Right of the Landlord to Perform Covenants** 

All covenants and agreements to be performed by the Tenant under any of the terms of this Lease shall be performed by the Tenant, at the Tenant's sole cost and expense, and without abatement of Rent. If the Tenant shall fail to perform any act on its part to be performed hereunder, and such failure shall continue for 10 days after notice thereof from the Landlord, the Landlord may (but shall not be obligated to do so) perform such act without waiving or releasing the Tenant from any of its obligations relative thereto. All sums paid or costs incurred by the Landlord in so performing such acts under this section 20.2, together with interest thereon at the Stipulated Rate from the date each such payment was made or each such cost incurred by the Landlord, shall be payable by the Tenant to the Landlord on demand.

**20.3** **Events of Default** 

If and whenever any of the following events **("Events of Default")** occur, namely:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all or any part of the
Rent hereby reserved is not paid when due, and such default continues for seven days after receipt of written notice from the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the remaining Term of this
Lease, or any goods, chattels or equipment of the Tenant is taken or exigible in execution or in attachment or if a writ of execution
is issued against the Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Tenant becomes insolvent
or commits an act of bankruptcy or becomes bankrupt or takes the benefit of any statute that may be in force for bankrupt or insolvent
debtors or becomes involved in voluntary or involuntary winding-up proceedings or if a receiver shall be appointed for the business,
property, affairs or revenues of the Tenant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Tenant makes a bulk
sale of its goods or moves or commences, attempts or threatens to move its goods, chattels and equipment out of the Premises (other than
in the normal course of its business) or ceases to conduct business from the Premises except in the case where the Tenant is diligently
attempting to sublease the Premises and is current on payments of Rent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Tenant fails to observe,
perform and keep each and every one of the covenants, agreements, provisions, stipulations and conditions herein contained to be observed,
performed and kept by the Tenant (other than payment of Rent) and persist in such failure after 10 days notice by the Landlord requiring
that the Tenant remedy, correct, desist or comply (or if any such breach would reasonably require more than 10 days to rectify, unless
the Tenant commences rectification within the 10 days notice period and thereafter promptly and effectively and continuously proceeds
with the rectification of the breach); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if an event of default
occurs with respect to any lease or agreement between the Tenant and the Landlord or the Landlord's agents;

then and in any of such cases, at the option of the Landlord, the full amount of the then current month's and the next ensuing three months' instalments of Rent, together with all expenses incurred by the Landlord in performing any of the Tenant's obligations under this Lease, re-entering or terminating and re-letting, collecting sums due or payable by the Tenant, effecting seizure and realizing upon assets seized (including brokerage, legal fees and disbursements), and the expense of keeping the Premises in good order, repairing the same and preparing them for re-letting, shall immediately become due and payable and the Landlord may immediately distrain for the same, together with any arrears then unpaid; and the Landlord may without notice or any form of legal process forthwith re-enter upon and take possession of the Premises or any part thereof in the name of the whole and remove and sell the Tenant's goods, chattels and trade fixtures therefrom, any rule of law or equity to the contrary notwithstanding; and the Landlord may seize and sell such goods, chattels and equipment of the Tenant whether within the Premises or removed therefrom, and the Tenant waives or renounces the benefit of any present or future law taking away or limiting the Landlord's right of distress on the property of the Tenant, and may apply the proceeds thereof to all Rent and other payments to which the Landlord is then entitled under this Lease. Any such sale may be effected in the discretion of the Landlord by public auction or otherwise, and either in bulk or by individual item, or partly by one means and partly by another, all as the Landlord in its entire discretion may decide. If any of the Tenant's property is disposed of as provided in this section 20.3, 10 days prior notice to the Tenant of disposition shall be deemed to be commercially reasonable.

**20.4** **Waiver of Exemption and Redemption** 

Notwithstanding anything contained in any statute now or hereafter in force limiting or abrogating the right of distress, none of the Tenant's goods, chattels or trade fixtures on the Premises at any time during the continuance of the Term shall be exempt from levy by distress for Rent in arrears, and upon any claim being made for such exemption by the Tenant or on distress being made by the Landlord this agreement may be pleaded as an estoppel against the Tenant in any action brought to test the right to levying upon any such goods as are named as exempted in any such statute, the Tenant hereby waiving all and every benefit that could or might have accrued to the Tenant under and by virtue of any such statute but for this Lease. The Tenant hereby expressly waives any and all rights of redemption granted by or under any present or future laws in the event of the Tenant being evicted or dispossessed for any cause, or in the event of the Landlord obtaining possession of the Premises, by reason of the violation by the Tenant of any of the terms or conditions of the Lease or otherwise.

**20.5** **Surrender** 

If and whenever the Landlord is entitled to or does re-enter, the Landlord may terminate this Lease by giving notice thereof, and in such event the Tenant shall forthwith vacate and surrender the Premises.

**20.6** **Payments** 

If the Landlord shall re-enter or if this Lease shall be terminated hereunder, the Tenant shall pay to the Landlord on demand:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Rent up to the time of
re-entry or termination, whichever shall be the later, plus accelerated rent as herein provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all expenses incurred by
the Landlord in performing any of the Tenant's obligations under this Lease, re-entering or terminating and re-letting, collecting sums
due or payable by the Tenant, realizing upon assets seized (including brokerage, legal fees and disbursements), and the expense of keeping
the Premises in good order, repairing the same and preparing them for re-letting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as damages for the loss
of income of the Landlord expected to be derived from the Premises, the amounts (if any) by which the Rent which would have been payable
under this Lease exceeds the payments (if any) received by the Landlord from other tenants in the Premises, payable on the first day
of each month during the period which would have constituted the unexpired portion of the Term had it not been terminated, or at the
election of the Landlord by notice to the Tenant at or after reentry or termination, a lump sum amount equal to the Rent which would
have been payable under this Lease from the date of such election during the period which would have constituted the unexpired portion
of the Term had it not been terminated, reduced by the rental value of the Premises for the same period, established by reference to
the terms and conditions upon which the Landlord re- lets them if such re-letting is accomplished within a reasonable period after termination,
and otherwise established by reference to all market and other relevant circumstances; Rent and rental value being reduced to present
worth at an assumed interest rate of 10% on the basis of the Landlord's estimates and assumptions of fact which shall govern unless shown
to be erroneous.

**20.7** **Security Interest** 

Intentionally Deleted

**20.8** **Lien on the Tenant's Goods and Equipment** 

If the Tenant is in default under this Lease, the Landlord has a lien on all goods, inventory, trade fixtures, equipment facilities and leasehold improvements of the Tenant in the Premises as security against loss or damage resulting from the occurrence of an Event of Default and none of the above will be removed by anyone until the Event of Default is corrected, unless otherwise permitted in writing by the Landlord. While any Event of Default is in existence or subsisting, the personal property of the Tenant shall not be removed in whole or in part from the Premises unless the prior written consent of the Landlord (which consent may be unreasonably or arbitrarily withheld or denied) is obtained, and the Landlord shall have the unfettered right to seize and sell the personal property of the Tenant in such manner and by such method as the Landlord, in its sole discretion, deems advisable, and to apply the proceeds of any sale firstly to the costs and expenses incurred to effect such sale and seizure and the remaining balance, if any, towards the losses and damages suffered or incurred by the Landlord as a result of the occurrence of such Event of Default, or, if applicable, to the costs and expenses incurred to cure such Event of Default, notwithstanding that the Term may have expired or this Lease may have been terminated prior to the date of such seizure, sale or both. In the event that the Premises are abandoned by the Tenant leaving personal property of the Tenant therein or thereon, all such personal property shall, at the Landlord's option, be deemed to have become the unencumbered property of the Landlord, and such personal property may be transferred, sold, disposed of or otherwise dealt with by the Landlord without any liability or accountability to the Tenant. So long as the Tenant is paying all Rent when due and in the manner required under this Lease and is not in an Event of Default,the Landlord will not have deemed the Tenant to have abandoned the Premises. The provisions of this section 20.8 will survive the expiration or earlier termination of this Lease.

**20.9** **Act of Subtenants** 

Any act or omission on the part of a subtenant of the Tenant that, if done, or omitted to be done, by the Tenant would constitute a breach of a covenant or condition in this Lease or would impose obligations on the Tenant or entitle the Landlord to exercise remedies, is considered for all purposes to be the act or omission of the Tenant and entitles the Landlord to enforce its remedies under this Lease or at law against the Tenant.

**20.10** **Remedies Cumulative** 

No reference to nor exercise of any specific right or remedy by the Landlord shall prejudice or preclude the Landlord from exercising or invoking any other remedy in respect thereof, whether allowed at law or in equity or expressly provided for herein. No such remedy shall be exclusive or dependent upon any other such remedy, but the Landlord may from time to time exercise any one or more of such remedies independently or in combination.

**ARTICLE 21**

**HAZARDOUS SUBSTANCES**

**21.1** **The Tenant's Covenants** 

The Tenant covenants and agrees that it will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not bring or allow any
Hazardous Substance to be brought onto the Development or the Premises except in compliance with Environmental Law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) comply at all times and
require all those for whom the Tenant is in law responsible to comply at all times with Environmental Law as it affects the Premises
or the Development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) give notice to the Landlord
of the presence at any time during the Term of any Hazardous Substance on the Premises (or the Development if such substance is in the
control of the Tenant) together with such information concerning such Hazardous Substance and its presence on the Premises or the Development
as the Landlord may require;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) give notice to the Landlord
of any occurrence which might give rise to a duty under Environmental Law by either the Tenant or the Landlord with respect to the presence
of any Hazardous Substance on the Premises or the Development including, without limitation, notice of any discharge, release, leak,
spill or escape into the environment of any Hazardous Substance at, to or from the Premises or the Development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in any case where the Tenant
has given notice as to the presence of a Hazardous Substance on the Premises or the Development, or is required to give such notice,
or where the Landlord has reasonable grounds to believe that any Hazardous Substance is going to be or has been brought onto the Premises
or the Development by the Tenant or any Person for whom the Tenant is in law responsible, to commission an environmental audit at the
Tenant's expense when required by the Landlord to do so;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) comply with any investigative,
remedial or precautionary measures required under Environmental Law or as reasonably required by the Landlord, be fully and completely
liable to the Landlord for any and all investigation, clean up, remediation, restoration or monitoring costs or any costs incurred to
comply with Environmental Law or any request by the Landlord that such measures be taken;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) protect, indemnify and
save each of the Landlord and its directors, officers, employees, agents, successors and assigns completely harmless from and against
any Environmental Claim, directly or indirectly incurred, sustained or suffered by or asserted against the Landlord and/or its directors,
officers, employees, agents,successors and assigns caused by or attributable to, either directly or indirectly, any act or omission of
the Tenant and/or any Person for whom the Tenant is in law responsible;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) enter into any additional
contract of insurance respecting the Premises which the Landlord may reasonably require to protect the Landlord and its directors, officers,
employees, agents, successors and assigns from any Environmental Claim respecting the Premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) provide to the Landlord
such security as the Landlord may from time to time require, acting reasonably, to ensure compliance by the Tenant of its covenants herein
contained; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) provide access to the Premises
for the Landlord or its agent to conduct an environmental audit of the Premises, at the Tenant's expense, at least two (2) months
prior to the expiry of the Term of this Lease.

**21.2** **Inquiries by the Landlord** 

The Tenant hereby authorizes the Landlord to make inquiries from time to time of any government or governmental agency with respect to the Tenant's compliance with the Environmental Law at the Premises, and the Tenant covenants and agrees that the Tenant will from time to time provide to the Landlord such written authorization as the Landlord may reasonably require in order to facilitate the obtaining of such information. The Landlord or its agent may inspect the Premises from time to time without notice, in order to verify the Tenant's compliance with the Environmental Law and the requirements of this Lease respecting Hazardous Substance. If the Landlord suspects that the Tenant is in breach of any of its covenants herein, the Landlord and its agent shall be entitled to conduct an environmental audit immediately, and the Tenant shall provide access to the Landlord and its agent for the purpose of conducting an environmental audit. Such environmental audit shall be at the Tenant's expense, and the Tenant shall forthwith remedy any problems identified by the environmental audit, and shall ensure that it complies with all of its covenants herein. Upon request by the Landlord from time to time, the Tenant shall provide to the Landlord a certificate executed by a senior officer of the Tenant certifying ongoing compliance by the Tenant with its covenants contained herein.

**21.3** **Ownership of Hazardous Substances** 

If the Tenant shall bring or create upon the Premises or the Development any Hazardous Substance or if the conduct of the Tenant's business shall cause there to be any Hazardous Substance upon the Premises or the Development then, notwithstanding any rule of law to the contrary, such Hazardous Substance shall be and remain the sole and exclusive property of the Tenant and shall not become the property of the Landlord notwithstanding the degree of affixation of the Hazardous Substance or the goods containing the Hazardous Substance to the Premises or the Development and notwithstanding the expiry or earlier termination of this Lease.

**21.4** **The Landlord's Remedies upon Default** 

Upon the Tenant's material default under this section and in addition to the rights and remedies set forth elsewhere in this Lease, the Landlord shall be entitled to the following rights and remedies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the Landlord's option,
to terminate this Lease; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to recover any and all
damages associated with the material default, including without limitation, in addition to any rights reserved or available to the Landlord
in respect of an early termination of this Lease, cleanup costs and charges, civil and criminal penalties and fees, loss of business
and sales by the Landlord and other tenants of the Development, any and all damages and claims asserted by third parties and the Landlord's
solicitors' fees and costs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) both of the above.

**ARTICLE 22**

**MISCELLANEOUS** 

**22.1** **Relationship of Parties** 

Nothing contained in this Lease shall create any relationship between the parties hereto other than that of landlord and tenant, and it is acknowledged and agreed that the Landlord does not in any way or for any purpose become a partner of the Tenant in the conduct of its business, or a joint venturer or a member of a joint or common enterprise with the Tenant.

**22.2** **Consent Not Unreasonably Withheld** 

Except as otherwise specifically provided, whenever consent or approval of the Landlord or the Tenant is required under the terms of this Lease, such consent or approval shall not be unreasonably withheld or delayed. The Tenant's sole remedy if the Landlord unreasonably withholds or delays consent or approval shall be an action for specific performance, and the Landlord shall not be liable for damages. If either party withholds any consent or approval, such party shall on written request deliver to the other party a written statement giving the reasons therefor.

**22.3** **Name of Building** 

The Landlord shall have the right, after 30 days notice to the Tenant, to change the name, number or designation of the Building, during the Term without liability to the Tenant.

**22.4** **Applicable Law and Construction** 

This Lease unless otherwise agreed by the parties shall be governed by and construed under the laws of the jurisdiction in which the Development is located, and its provisions shall be construed as a whole according to their common meaning and not strictly for or against the Landlord or the Tenant. The words the Landlord and the Tenant shall include the plural as well as the singular. Time is of the essence in this Lease and each of its provisions. This Lease shall be deemed to be executed under seal by all parties to this Lease even though a party may not affix its seal. Words and terms denoting inclusiveness (such as "include" or "includes" or "including"), whether or not so stated, are not limited by and do not imply limitation of the context or the words or phrases which precede or succeed them. All references to articles and schedules refer, unless otherwise specified, to articles of and schedules to this Lease. All references to sections refer, unless otherwise specified, to sections, paragraphs or clauses of this Lease and reference to paragraphs or clauses refer to paragraphs in the same section as the reference or clauses in the same paragraph as the reference. The captions, section numbers, article numbers and the table of contents appearing in this Lease are inserted only as a matter of convenience and do not affect the interpretation or substance of this Lease. All references to federal and provincial statutes, regulations, codes and guidelines includes amendments to such statutes, regulations, codes and guidelines and successor and replacement legislation thereto unless otherwise stated to the contrary. Unless otherwise stated, all dollar amounts in this Lease are in Canadian dollar amounts and are exclusive of GST.

**22.5** **Entire Agreement** 

There are no terms and conditions which at the date of execution of this Lease are additional or supplemental to those set out on the pages of this Lease. This Lease contains the entire agreement between the parties hereto with respect to the subject matter of this Lease and supersedes all prior agreements between the Landlord and Tenant including any agreement to lease between the Landlord and Tenant. The Tenant acknowledges and agrees that it has not relied upon any statement, representation, agreement or warranty except such as are set out in this Lease.

**22.6** **Amendment or Modification** 

Unless otherwise specifically provided in this Lease, no amendment, modification, or supplement to this Lease shall be valid or binding unless set out in writing and executed by the parties hereto in the same manner as the execution of this Lease.

**22.7** **Construed Covenants and Severability** 

Except where expressed as conditions, all of the provisions of this Lease are to be construed as covenants and agreements as though the word importing such covenants and agreements were used in each separate Article hereof. Should any provision of this Lease be or become invalid, void, illegal or not enforceable, it shall be considered separate and severable from the Lease and the remaining provisions shall remain in force and be binding upon the parties hereto as though such provision had not been included.

**22.8** **No Implied Surrender or Waiver** 

No provisions of this Lease shall be deemed to have been waived by the Landlord unless such waiver is in writing signed by the Landlord. The Landlord's waiver of a breach of any term or condition of this Lease shall not prevent a subsequent act, which would have originally constituted a breach, from having all the force and effect of any original breach. The Landlord's receipt of Rent with knowledge of a breach by the Tenant of any term or condition of the Lease shall not be deemed a waiver of such term or condition. No act or thing done by the Landlord, its agents or employees during the Term shall be deemed an acceptance of a surrender of the Premises, and no agreement to accept a surrender of the Premises shall be valid, unless in writing and signed by the Landlord. The delivery of keys to any of the Landlord's agents or employees shall not operate as a termination of the Lease or a surrender of the Premises. No payment by the Tenant, or receipt by the Landlord, of a lesser amount than the Rent due hereunder shall be deemed to be other than on account of the earliest stipulated Rent, nor shall any endorsement or statement on any cheque or any letter accompanying any cheque, or payment as Rent, be deemed an accord and satisfaction, and the Landlord may accept such cheque or payment without prejudice to the Landlord's right to recover the balance of such Rent or pursue any other remedy available to the Landlord.

**22.9** **Successors Bound** 

Except as otherwise specifically provided, the covenants, terms and conditions contained in this Lease shall apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto.

**22.10** **Liability: Joint/Several** 

In the event there is more than one entity or Person which or who are parties constituting the Tenant under this Lease, the obligation imposed upon each of the parties comprising the Tenant under this Lease shall be joint and several.

**22.11** **Set-off** 

In the event the Landlord is liable for any payment or reimbursement to the Tenant then unless otherwise provided for in this Lease the Landlord has the right to set-off such reimbursement or liability against liabilities of the Tenant to the Landlord.

**22.12** **Registrations** 

The Tenant agrees with the Landlord not to register this Lease but the Tenant may register a caveat in a form approved by the Landlord and provided the Tenant pays the Landlord's reasonable fee for same and allocable transfer or recording taxes or charges. Such caveat shall not reveal the financial terms of this Lease. The Tenant shall remove and discharge at the Tenant's expense the registration of such a notice at the expiry or the earlier termination of the Term or renewals thereof and in the event of the Tenant's failure to remove or discharge this notice or caveat after 10 days written notice by the Landlord or the Tenant, the Landlord may in the name and on behalf of the Tenant execute a discharge of such a notice in order to remove and discharge such notice and for the purposes thereof, the Tenant hereby irrevocably constitutes and appoints any officer of the Landlord the true and lawful attorney of the Tenant.

**22.13** **Unavoidable Delay** 

Except as herein otherwise expressly provided, if and whenever and to the extent that either the Landlord or the Tenant shall be prevented, delayed or restricted in the fulfilment of any obligation hereunder in respect to the supply or provision of any service or utility, the making of any repair, the doing of any work or any other thing (other than the payment of monies required to

be paid by the Tenant to the Landlord hereunder) by reason of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) strikes
or work stoppages;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) being
unable to obtain any material, service, utility or labour required to fulfil such obligations; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) other
unavoidable occurrences,

then the time for fulfilment of such condition and obligation shall be extended during the period in which such circumstances operates to prevent, delay or restrict fulfilment thereof, and the other party to this Lease shall not be entitled to compensation for any inconvenience, nuisance or discomfort thereby occasioned.

**22.14** **Limitation of Recourse** 

The Tenant acknowledges that, notwithstanding any other provision contained in this Lease, the obligations of and rights against the Landlord under this Lease and any other agreement with the Tenant shall be performed, satisfied and paid only out of and enforced against, and recourse hereunder shall be had only after judgment and only against, the right, title and interest of the Landlord in, and the Landlord's revenue derived from, the Development whether such action or proceeding is for an award of damages, declaratory or injunctive relief or specific performance. No obligation of the Landlord hereunder or in respect hereof is personally binding upon, nor shall any resort or recourse be had, judgment issued or execution or other process levied against, the Landlord (except to the extent necessary for enforcement under the first sentence of this section and only for that purpose), or against any other assets or revenues of the Landlord. The only remedy against the Landlord shall be an action for damages. Notwithstanding anything else contained in this Lease or implied by law, in respect of any remedy as against the Landlord, where the Landlord is comprised of more than one party, the liability of each party comprising the Landlord shall be deemed to be several and not joint or joint and several, and shall be limited to the respective undivided percentage interest of each such party in the Land.

**22.15** **Counterparts and Electronic Delivery** 

This Lease may be executed in counterparts and the counterparts together shall constitute an original document. Delivery of this document may be made by facsimile transmission or by email in PDF format and if so delivered shall be deemed to be an original document. Original documents are to be delivered to each of the parties within 7 Business Days from the date of delivery by facsimile transmission or email.

**22.16** **Independent Legal Advice** 

The Tenant acknowledges that the Landlord hereby advises the Tenant to obtain advice from independent legal counsel prior to signing this Lease. The Tenant further acknowledges that any information provided by the Landlord is not to be construed as legal, tax or any other expert advice and the Tenant is cautioned not to rely on any such information without seeking legal, tax or other expert advice.

The Landlord and the Tenant understand, acknowledge and agree that this Lease has been freely negotiated by both parties and that, in any dispute or contest over the meaning, interpretation, validity or enforceability of this Lease or any of its terms or conditions, there shall be no inference, presumption or conclusion drawn whatsoever against either party by virtue of that party having drafted this Lease or any portion thereof.

**22.17** **Survival of Covenants and Indemnities** 

All obligations of the Tenant which arise during the Term pursuant to this Lease and which have not been satisfied at the end of the Term and all indemnities of the Tenant contained in this Lease shall survive the expiration or other termination of this Lease.

**22.18** **Exculpatory Provisions** 

In all provisions of this Lease containing a release, indemnity or other exculpatory language in favour of the Landlord, reference to the Landlord includes reference also to the Landlord's agents (including, without limitation, the Landlord's nominee, the Landlord's manager and the Landlord's leasing agent) and any Person for whom it is in law responsible and the directors, officers and employees of the Landlord, its agents (including, without limitation, the Landlord's nominee, the Landlord's manager and the Landlord's leasing agent) and any Person for whom it is in law responsible and its agents while acting in the ordinary course of their employment (collectively the "Released Persons"), it being understood and agreed that, for the purposes of this section, the Landlord is deemed to be acting as the agent or trustee on behalf of and for the benefit of the Released Persons solely to the extent necessary for the Released Persons to take the benefit of this section.

**22.19** **The Indemnifier** 

Intentionally deleted.

**22.20** **Real Estate Investment Trust** 

The parties acknowledge and agree that if the Landlord or one of the parties comprising the Landlord is a real estate investment trust (the "REIT"), then the obligations of REIT hereunder and under all documents delivered pursuant hereto (and all documents to which this document may be pursuant) or which give effect to, or amend or supplement, the terms of this Lease are not personally binding upon any trustee of the REIT, any registered or beneficial holder of units (a "Unitholder") or any annuitant under a plan of which a Unitholder acts as a trustee or carrier, or any officers, employees or agents of the REIT and resort shall not be had to, nor shall recourse or satisfaction be sought from, any of the foregoing or the private property of any of the foregoing, but that portion of the Development owned by the REIT only shall be bound by such obligations and recourse or satisfaction may only be sought from the revenue of that part of the Property owned by the REIT.

**22.21** **Confidentiality** 

Unless otherwise compelled by law, the Tenant and the Landlord shall cause their respective employees, agents, shareholders, servants, directors, officers and those for whom each of them is legally responsible to keep all provisions of this Lease confidential. The Tenant's and the Landlord's obligation to observe and perform the provisions of this section shall survive the expiration or earlier termination of this Lease.

**22.22** **Trademarks** 

The Tenant shall not use any trademarks, copyrights or other intellectual property (collectively, the "Intellectual Property") of the Landlord without the prior written consent of the Landlord. The Landlord's consent, if given, may contain such conditions as the Landlord deems appropriate for the use and protection of such Intellectual Property including any licence fee that the Landlord feels is appropriate in the circumstances. In the absence of the Landlord's consent, and if the Tenant uses the Intellectual Property without the Landlord's written consent and without entering into a licence agreement required by and acceptable to the Landlord, the Tenant hereby agrees and consents to any injunctive or declaratory order or judgment barring it from any further use of the Intellectual Property and hereby indemnifies the Landlord for any losses, claims, damages, liability or costs (including solicitor and own client costs on a full indemnity basis) suffered by the Landlord as a result of the Tenant's unauthorized use of the Intellectual Property.

**22.23** **Additional Provisions** 

The additional provisions, if any, are set out in Schedule G.

**22.24** **Acceptance of Lease** 

The Tenant and the Landlord hereby accept this Lease subject to the conditions, restrictions and covenants herein set forth.

IN WITNESS WHEREOF the parties hereto have affixed their respective corporate seals, duly attested by the hands of their respective authorized officers in that regard as of the day and year first above written.

---

| | | | |
|:---|:---|:---|:---|
| LANDLORD: | **ASPEN PROPERTIES (SLP) LTD.** | **ASPEN PROPERTIES (SLP) LTD.** | **ASPEN PROPERTIES (SLP) LTD.** |
|  | Per: | /s/ Greg Guatto | /s/ Greg Guatto |
|  |  | Name: | Greg Guatto |
|  |  | Title: | President & CEO |
|  | Per: | /s/ R. Scott Hutcheson | /s/ R. Scott Hutcheson |
|  |  | Name | R. Scott Hutcheson |
|  |  | Title: | Executive Chair |
|  | I/We have the authority to bind the corporation | I/We have the authority to bind the corporation | I/We have the authority to bind the corporation |

---

---

| | | | |
|:---|:---|:---|:---|
| TENANT: | **NANO INNOVATIONS INC.** | **NANO INNOVATIONS INC.** | **NANO INNOVATIONS INC.** |
|  | Per: | /s/ R. Michael Steele | /s/ R. Michael Steele |
|  |  | Name: | R. Michael Steele |
|  |  | Title: | Chief Financial Officer |
|  | Per: | | |
|  |  | Name |  |
|  |  | Title: |  |
|  | I/We Have the authority to bind the corporation | I/We Have the authority to bind the corporation | I/We Have the authority to bind the corporation |

---

---

| | | | |
|:---|:---|:---|:---|
| TENANT: | **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
|  | Per: | /s/ R. Michael Steele | /s/ R. Michael Steele |
|  |  | Name: | R. Michael Steele |
|  |  | Title: | Chief Financial Officer |
|  | Per: | | |
|  |  | Name: | Name: |
|  |  | Title: | Title: |
|  | I/We have the authority to bind the corporation | I/We have the authority to bind the corporation | I/We have the authority to bind the corporation |

---

**SCHEDULE A - FLOOR PLAN**

Suite 2320, as shown below

![](cm281_ex10-5img01.jpg)

**SCHEDULE B –** **LEGAL DESCRIPTION**

**Building Address:** 140 - 4th Avenue SW, Calgary, Alberta

**Legal Description of the Building:**

PLAN 9212003

BLOCK 15

LOT 1A

EXCEPTING THEREOUT ALL MINES AND MINERALS

**Legal Description of Development:**

**140/144 – 4<sup>th</sup> Avenue SW, Calgary, Alberta**

PLAN 9212003

BLOCK 15

LOT 1A

EXCEPTING THEREOUT ALL MINES AND MINERALS

**112 – 4<sup>th</sup> Avenue SW, Calgary, Alberta**

PLAN C

BLOCK 15

LOTS 10 to 15 and LOTS 25 to 31 inclusive

EXCEPTING THEREOUT ALL MINES AND MINERALS

**SCHEDULE C - DETERMINATION OF OCCUPANCY COSTS**

1. **Definitions:** 

In this Lease

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Intentionally
 deleted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "Occupancy
 Costs" means the Tenant's Pro-rata Share of the amount of Operating Expenses and Real
 Estate Taxes, calculated annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Operating
 Expenses" means the total of all expenses, costs, fees, rentals, disbursements and outlays
 of every kind paid, payable or incurred by or on behalf of the Landlord on an accrual basis
 (or on a cash basis to the extent the Landlord considers appropriate) in the ownership, maintenance,
 repair, replacement, operation, administration, supervision and management of the Development,
 in accordance with International Financial Reporting Standards ("IFRS") accounting
 practices as applied by the Landlord, or such other comparable standard, in the Landlord's
 reasonable discretion. Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) subject
to certain exclusions and deductions provided in sections (ii) and (iii) of this definition, Operating Expenses include:

&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) costs
 of providing security, supervision, traffic control, janitorial, landscaping, window cleaning,
 waste collection, disposal and recycling and snow removal services and the costs of machinery,
 supplies, tools, equipment and materials used in connection with the Building (including
 rental costs of such items);

&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) costs
 of telephone and telecommunications (including riser, rooftop and wireless management), information
 technology, telecopier, stationery, office equipment, supplies, signs and directory boards
 and other services and materials required for management, maintenance and operation (whether
 on or off-site and whether incurred by the Landlord or a management company);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) costs
 of providing electricity, fuel, heat, processed air, water, telephone, gas, sewage disposal
 and other utilities and services (including all energy management and administration costs)
 and costs of replacing building standard electric light fixtures, ballasts, tubes, starters,
 lamps, light bulbs and controls (to the extent such item is charged separately to the Tenant
 pursuant to this Lease then the costs of any such item attributable to other leasable premises
 shall be excluded);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) costs
 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;i. operating,
 maintaining, replacing, modifying and repairing the Building, including without limitation
 such costs where incurred by the Landlord in order to comply with applicable laws or required
 by the Landlord's insurance carrier or resulting from normal wear and tear to the Building;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. providing,
 installing, modifying and upgrading energy conservation equipment and systems, life safety
 and emergency response systems, materials and procedures and telecommunication systems and
 equipment if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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. making
 alterations, replacements or additions to the Building intended to reduce Operating Expenses,
 updating or upgrading or otherwise modifying the finishes of the Building, improving the
 operation of the Building and the systems, facilities and equipment serving the Building,
 or maintaining their operation; 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;iv. replacing machinery
 or equipment which by its nature requires periodic replacement,

all to the extent that such costs are fully chargeable in the Fiscal Year in which they are incurred in accordance with sound accounting principles or practices as applied by the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) depreciation
 or amortization (but not both) of the costs referred to in section (4) above as determined
 in accordance with sound accounting principles or practices as applied by the Landlord, if
 such costs have not been charged fully in the Fiscal Year in which they are incurred, and
 interest on the undepreciated or unamortized balance of such costs, calculated monthly, at
 an annual rate equal to 3% above the Prime Rate in effect on the first day of each Fiscal
 Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) amounts
 paid to, or reasonably attributable to the remuneration of, all personnel (whether on or
 off-site and whether employed by the Landlord or a management company) involved in the maintenance,
 repair, replacement, operation, administration, supervision and management of the Building,
 including fringe benefits, severance pay, termination payments and other employment costs.
 Executive salaries, bonuses and fringe benefits will be reasonably allocated to the Landlord's
 portfolio of properties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) auditing,
 accounting, legal, advertising and other professional and consulting fees and disbursements
 incurred in connection with the maintenance, repair, replacement, operation, administration,
 supervision and management of the Building, including those incurred with respect to the
 preparation of the statements required under the provisions of this Lease and costs of administering,
 minimizing, contesting or appealing assessments of Real Estate Taxes (whether or not successful);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) costs
 of all insurance which the Landlord is obligated or permitted to obtain under this Lease
 and the amounts of losses incurred or claims paid either below the insurance deductible amounts
 or as the co-insurance portion of an insured claim;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Real
 Estate Taxes to the extent not charged to the Tenant pursuant to this Schedule C and to other
 tenants of the Building pursuant to lease provisions similar to such provisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Intentionally
 deleted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) fair
 market rental value (having regard to rent being charged for similar space including additional
 rent for Operating Expenses and Real Estate Taxes) of space used by the Landlord and/or its
 property manager, acting reasonably, in connection with the maintenance, repair, operation,
 administration and management of the Building and such fair market rental value of any building
 amenities (such as conference, fitness, lounge area and day-care facilities provided primarily
 for tenants of the Building), together with the reasonable costs relating to such building
 amenities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12) 4%
 of Project Revenue or such other percentage of Project Revenue as determined by the Landlord
 from time to time payable to the Landlord as a management fee and any management or administrative
 fees paid to a third party for management or administrative services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13) all
 other costs and expenses of every kind, to the extent incurred in or allocable to ownership,
 maintenance, repair, replacement, operation, administration, supervision and management of
 the Development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) except
to the extent otherwise provided above in section (i) of this definition, Operating Expenses exclude:

&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) Real
 Estate Taxes;

&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) interest
 on, and the capital retirement of debt, except as specifically provided in section (a) above,
 and ground rent payable to the lessor under any ground or other lease pursuant to which the
 Landlord has an interest in the Development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) major
 repairs to the Structural Elements that are required as a result of defective design or construction
 of such structural components;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) expenses
 relating to decorating or redecorating or renovating rentable space for tenants or occupants
 of the Building and costs relating to tenant inducements, allowances or similar expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) all
 expenses relating to specific leasing transactions including without limitation, real estate
 brokers' fees, leasing commissions, advertising and space planners' fees applicable to such
 transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) repairs
 or maintenance done for the direct account of other tenants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) utilities
 consumed by a tenant or occupant of the Building (including the Tenant) which are either
 separately metered or separately allocated to a tenant or occupant of the Building and paid
 separately from Operating Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) cleaning
 costs for the Premises (other than portions of the Premises forming part of the Common Areas)
 which the Tenant has incurred as a result of the Tenant's cleaning contractors cleaning the
 Premises and paid separately from Operating Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) the
 cost of additional services provided to the Tenant (unless included as Operating Expenses),
 other tenants or occupants of the Building under lease provisions similar to section 7.6
 of this Lease;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) there
will be credited as a deduction from Operating Expenses:

&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) an
 amount equal to the net proceeds of insurance actually recovered by the Landlord for damage
 to the Development (or, if the Landlord has self-insured, an amount equal to such damage
 less a reasonable deductible) to the extent that the cost to repair such damage is included
 in Operating Expenses;

&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) net
 recoveries received by the Landlord in respect of warranties or guarantees and insurance
 claims to the extent (but only to the extent) that the repair costs in respect of the work
 covered by such warranties or guarantees or insurance claims have been charged as Operating
 Expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) amounts
 recovered from licensees and tenants as contributions to the cost of telecommunications related
 services (including riser, rooftop and wireless management) to the extent that those costs
 have been included in Operating Expenses; 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;(4) an
 amount equal to recoveries by the Landlord in respect of warranties or guarantees relating
 to the construction of the Development or any part of it to the extent that the repair costs
 in respect of the work covered by warranty or guarantee is included in Operating Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In determining
Operating Expenses:

&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) if
 less than 100% of the Rentable Area of the Building is completed or occupied during any period
 for which a computation must be made, the amount of Operating Expenses will be increased
 by the amount of the additional costs determined by the Landlord, that would have been incurred
 had 100% of the Rentable Area of the Building been completed or occupied during that period,
 provided that the foregoing shall not result in the Tenant's Pro-rata Share being greater
 than it would be if the Building was fully occupied and completed;

&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) where
 the Landlord determines, acting reasonably but in its sole discretion, that any items of
 Operating Expenses are provided only to or for the benefit of a portion of the Building,
 then the Landlord shall be entitled, but not obligated, to allocate the cost of those items
 over such portion of the Building and adjust the Occupancy Costs payment based on such allocation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if
 the Building is comprised of different categories of leasable premises, the Landlord shall
 be entitled, but not obligated, to allocate Operating Expenses among the various categories
 on the basis of such factors as the Landlord determines to be relevant, acting reasonably
 but in its sole discretion, and to adjust the Occupancy Costs payment based on such allocation;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 allocation of Operating Expenses or Real Estate Taxes that are shared by the Building with
 another building shall be determined by Landlord in such manner and on such basis as Landlord
 in its sole discretion considers equitable and such allocation shall be final and binding
 on Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "Project
 Revenue" means all income received by the Landlord for the Development and includes
 Rent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "Real
 Estate Taxes" means: (a) any form of assessment (including any "special" assessment),
 property tax, license fee, license tax, business license fee, business license tax, commercial
 rental tax, levy, charge, penalty or tax, imposed by any authority having the direct power
 to tax, including any city, county, provincial or federal government, or any school, agricultural,
 lighting, water drainage or other improvement or special district thereof, against the Premises
 or the Development or any legal or equitable interest of the Landlord therein; (b) any tax
 on the Landlord's right to rent the Premises or against the Landlord's business of leasing
 the Premises; (c) any assessment, tax, fee, levy or charge in substitution, partially or
 totally, of or in addition to any assessment, tax, fee, levy or charge previously included
 within the definition of Real Estate Taxes which may be imposed by governmental agencies
 for such services as fire protection, street, sidewalk and road maintenance, refuse removal
 and for other governmental services provided to property owners or occupants; (d) all business
 taxes and other taxes, if any, from time to time payable by the Landlord with respect to
 the Common Areas; (e) any business transfer tax; and (f) all taxes or business taxes, if
 any, not recovered, or which in the Landlord's opinion are not recoverable, from tenants
 of the Development. It is the intention of the Landlord and the Tenant that all new assessments,
 taxes, fees, levies and charges be included within the definition of Real Estate Taxes for
 purposes of this Lease. The following shall also be included within the definition of Real
 Estate Taxes for purposes of this Lease; provided, however, that the Tenant shall pay the
 Landlord the entire amount thereof (i) any tax allocable to or measured by the area of the
 Premises or the rental payable hereunder, including without limitation, any gross income,
 privilege, sales or excise tax levied by any municipal or provincial or federal government,
 with respect to the receipt of such rental, or upon or with respect to the possession, leasing,
 operating, management, maintenance, alteration, repair, use or occupancy by the Tenant of
 the Premises or any portion thereof; (ii) any tax upon this transaction or any document to
 which the Tenant is a party, creating or transferring an interest or an estate in the Premises;
 and (iii) all costs incurred by the Landlord contesting or appealing the Real Estate Taxes
 (including, without limitation, legal, appraisal and other professional fees and costs and
 administration and overhead costs). "Real Estate Taxes" shall not include the Landlord's
 income, franchise, inheritance or estate taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "Tenant's
 Pro-rata Share" shall be a fraction, equal to the Rentable Area of the Premises, divided
 by the Rentable Area of the Building.

**SCHEDULE D - RULES AND REGULATIONS**

1. <u>Security</u>:
 The Landlord may from time to time adopt appropriate systems and procedures for the security
 or safety of the Building, any Persons occupying, using or entering the same, or any equipment,
 finishings or contents thereof, and the Tenant shall comply with the Landlord's reasonable
 requirements relative thereto.

2. <u>Locks</u>:
 The Landlord may from time to time install and change locking mechanisms on entrances to
 the Building, Common Areas thereof, and the Premises, and (unless 24 hour security is provided
 by the Building) shall provide to the Tenant a reasonable number of keys and replacements
 to meet the bona fide requirements of the Tenant. In these rules "keys" include
 any device serving the same purpose. The Tenant shall not add to or change existing locking
 mechanisms on any door in or to the Premises without the Landlord's prior written consent.
 If with the Landlord's consent, the Tenant installs lock(s) incompatible with the Building
 master locking system:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Landlord,
 without abatement of Rent, shall be relieved of any obligation under this Lease to provide
 any service to the affected areas which requires access thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Tenant
 shall indemnify the Landlord against any expenses as a result of a forced entry thereto which
 may be required in an emergency; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Tenant
 shall at the end of the Term and at the Landlord's request remove such lock(s) at the Tenant's
 expense.

3. <u>Return of Keys</u>: At the end of the Term, the Tenant shall
 promptly return to the Landlord all keys for the Building and Premises which are in possession
 of the Tenant.

4. <u>Windows</u>:
 The Tenant shall observe the Landlord's rules with respect to maintaining uniform drapes
 and venetian blinds at all windows in the Premises so that the Building presents a uniform
 exterior appearance, and shall not install any window shades, screen, drapes, covers or other
 materials on or at any window in the Premises without the Landlord's written consent. The
 Tenant shall ensure that all drapes and venetian blinds are closed on all windows in the
 Premises while they are exposed to direct rays of the sun.

5. <u>Repair, Maintenance, Alterations and Improvements</u>: The
 Tenant shall carry out the Tenant's repair, maintenance, alterations and improvements in
 the Premises only during time agreed to in advance by the Landlord and in a manner which
 will not interfere with the rights of other tenants in the Building.

6. <u>Water Fixtures</u>:
 The Tenant shall not use water fixtures for any purpose for which they are not intended,
 nor shall water be wasted by tampering with such fixtures. Any cost or damage resulting from
 such misuse by the Tenant shall be paid for by the Tenant.

7. <u>Personal Use of Premises</u>: The Premises shall not be used
 or permitted to be used for residential, lodging or sleeping purposes or for the storage
 of personal effects or property not required for business purposes.

8. <u>Heavy Articles</u>:
 The Tenant shall not place in or move about the Premises without the Landlord's prior written
 consent any safe or other heavy article which in the Landlord's reasonable opinion may damage
 the Building, and the Landlord may designate the location of any heavy articles in the Premises.

9. <u>Carpet Pads</u>: In those portions of the Premises where carpet
 has been provided directly or indirectly by the Landlord, the Tenant shall at its own expense
 install and maintain pads to protect the carpet under all furniture having casters other
 than carpet casters.

10. <u>Bicycles, Animals</u>: The Tenant shall not bring any animals
 or birds into the Building other than in accordance with the Landlord's dog policy,
 and shall not permit bicycles or other vehicles inside or on the sidewalks outside the Building
 except in areas designated from time to time by the Landlord for such purposes. Bicycles
 are not permitted in the elevators and the Landlord is not responsible for any lost, damaged
 or stolen bicycles. The Landlord's rules and regulations in this section 10 are subject
 to change.

11. <u>Deliveries</u>:
 The Tenant shall ensure that deliveries of materials and supplies to the Premises are made
 through such entrances, elevators and corridors and at such times as may from time to time
 be designated by the Landlord, and shall promptly pay or cause to be paid to the Landlord
 the cost of repairing any damage in the Building caused by any Person making such deliveries.

12. <u>Furniture and Equipment</u>: The Tenant shall ensure that furniture
 and equipment being moved into or out of the Premises is moved through such entrances, elevators
 and corridors and at such times as may from time to time be designated by the Landlord, and
 by movers or a moving company approved by the Landlord, and shall promptly pay or cause to
 be paid to the Landlord the cost of repairing any damage in the Building caused thereby,
 and the cost of building staff regarding special moving requirements of the Tenant.

13. <u>Solicitations</u>:
 The Landlord reserves the right to restrict or prohibit canvassing, soliciting or peddling
 in the Building.

14. <u>Food and Beverages</u>: Only Persons approved from time to time
 by the Landlord may prepare, solicit orders for, sell, serve or distribute foods or beverages
 in the Building, or use the elevators, corridors or Common Areas for any such purpose. Except
 with the Landlord's prior written consent and in accordance with arrangements approved by
 the Landlord, the Tenant shall not permit on the Premises the use of equipment for dispensing
 food or beverages or for the preparation, solicitation of orders for, sale, serving or distribution
 of food or beverages. The foregoing shall not include the use of equipment for dispensing
 food and beverages to the employees of the Tenant.

15. <u>Refuse</u>:
 The Tenant shall place all refuse in proper receptacles provided by the Tenant at its expense
 in the Premises or in receptacles (if any) provided by the Landlord for the Building, and
 shall keep sidewalks and driveways outside the Building, and lobbies, corridors, stairwell,
 ducts and shafts of the Building free of all refuse.

16. <u>Obstructions</u>:
 The Tenant shall not obstruct or place anything in or on the sidewalks or driveways outside
 the Building or in the lobbies, corridors, stairwells or other Common Areas of the Building,
 or use such locations for any purpose except access to and exit from the Premises without
 the Landlord's prior written consent. The Landlord may remove at the Tenant's expense any
 such obstruction or thing (unauthorized by the Landlord) without notice or obligation to
 the Tenant.

17. <u>Dangerous or Immoral Activities</u>: The Tenant shall not make
 any use of the Premises which involves the danger of injury to any person, nor shall the
 same be used for any immoral purpose.

18. <u>Proper Conduct</u>: The Tenant shall not conduct itself in
 any manner which is inconsistent with the character of the Building as a first class quality
 Building or which will impair the comfort and convenience of other tenants in the Building.

19. <u>Employees, Agents and Invitees</u>: In these Rules and Regulations,
 the Tenant includes the employees, agents, invitees and licensees of the Tenant and others
 permitted by the Tenant to use or occupy the Premises.

20. <u>Signs</u>:
 The Tenant shall not paint, display, inscribe, place or affix any sign, picture, advertisement,
 notice, lettering or direction on any part of the exterior of the Premises or so as to be
 visible from the exterior of the Premises without the Landlord's written consent. The Tenant
 shall adhere to the building standard identification signs for tenants to be placed on the
 outside of the doors leading into the Premises of tenants of multiple tenancy floors.

**SCHEDULE E TENANT IMPROVEMENTS**

1. <u>Definition of Leasehold Improvements</u>:

"Leasehold Improvements" includes, without limitation, all fixtures, improvements, installations, alterations and additions from time to time made, erected or installed by or on behalf of the Tenant, or any previous occupant of the Premises, in the Premises and by or on behalf of other tenants in other premises in the Building (including the Landlord if an occupant of the Building), including all partitions and hardware however affixed, and whether or not movable, all mechanical electrical and utility installations and all carpeting and drapes, with the exception only of furniture and equipment not of the nature of the fixtures.

2. <u>Installation of Improvements and Fixtures</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 work including changes to the structure or the systems employed in the Building necessitated
 by the Tenant's Work shall be first approved by the Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 preparation of all design and working drawings and specifications relating to completion
 of the Premises for occupation by the Tenant and the calling of tenders and letting of contracts
 relating to the Tenant's Work and the supervision and completion of the Tenant's Work and
 payment therefore shall be the responsibility of the Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Approvals
 must be obtained by the Tenant for its work from the municipal building department and all
 authorities having jurisdiction and the Tenant must submit evidence of these approvals to
 the Landlord before commencing work. The Tenant shall be responsible for payment of all fees
 and charges incurred in obtaining said approvals to the Landlord before commencing work.
 The Tenant shall be responsible for payment of all fees and charges incurred in obtaining
 said approvals and for obtaining an occupancy permit prior to opening.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) All
 Tenant's Work required by the Tenant to complete the Premises for occupancy shall be carried
 out with good workmanship and shall not be in contravention of the codes or regulations of
 the municipality or any other authority having jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Before
 commencing any work, the Tenant shall furnish the Landlord with written proof of all contractors'
 comprehensive general liability insurance for limits not less than those required by the
 Lease. The Landlord shall be named as an additional insured in the Tenant's insurance policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Before
 commencing any work, the Tenant shall furnish the Landlord with written proof of all contractors'
 Workers' Compensation Board Clearance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The
 Tenant shall at all times keep the premises and all other areas clear of waste materials
 and refuse caused by itself, its suppliers, contractors or by their work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The
 Landlord may require the Tenant to clean up on a daily basis and be entitled to clean up
 at the Tenant's expense if the Tenant shall not comply with the Landlord's reasonable requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) All
 the Tenant work including the delivery, storage and removal of materials shall be subject
 to the reasonable supervision of the Landlord and shall be performed in accordance with any
 reasonable conditions or regulations imposed by the Landlord including, without limitation,
 payment on demand of a reasonable fee of the Landlord for such supervision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) In
 no event shall the Tenant alter or interfere with window coverings (if any) or other light
 control device (if any) installed in the Building.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The
 Landlord may require that the Landlord's contractors and sub contractors be engaged for any
 mechanical or electrical work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) No locks
shall be installed on the entrance doors or in any doors in the Premises that are not keyed to the Building master key system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The Landlord
shall not in any way be responsible for or liable with regard to any work carried out or any materials left or installed in the Premises
and shall be reimbursed for any additional cost and expenses caused which may be occasioned to it by reason thereof and for any delays
which may be directly or indirectly caused by the Tenant or its contractor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Any damages
caused by the Tenant, their contractors or subtrades employed on the work to any of the structure or the systems employed in the Building
or to any property of the Landlord or of other the Tenants, shall be repaired by the Landlord's contractor to the satisfaction of the
Landlord and the Landlord may recover the costs incurred from the Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) If the
Tenant or the Tenant's contractor neglects to carry out the work properly or fails to perform any work required by or in accordance with
the approved plans and specifications, the Landlord, after 30 days written notice to the Tenant and the Tenant's contractor may, without
prejudice to any right or remedy, complete the work, remedy the default or make good any deficiencies and recover the costs incurred
from the Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) The Tenant
shall maintain and keep on the Premises at all times during construction and the Term of the Lease, a suitable portable fire extinguisher
for Class A, B and C fires.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) The Tenant
shall perform its work expeditiously and efficiently and shall complete the same within the Fixturing Period or such other period in
this Lease or any other agreement between the parties granted to the Tenant for completion of the Tenant's Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) On completion
of the Tenant's Work, the Tenant shall forthwith furnish to the Landlord a statutory declaration stating that there are no builders'
liens outstanding against the demised premises on account of the Tenant's Work and that all accounts for work, service and materials
have been paid in full with respect to all of the Tenant's Work, together with evidence in writing satisfactory to the Landlord that
all assessments under the Workers Compensation Act have been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The Tenant
shall not suffer or permit any builders' or other lien for work, labour, services or materials to be filed against or attached to the
entire premises or any part thereof. The Tenant agrees that if any builders' lien is filed, as aforesaid as a result of his occupancy
or possession, the Tenant shall do all within its power to have the lien removed at the earliest possible date. This includes, but shall
not be limited to, payment of monies into court and/or any other remedy which would result in the lien being removed from the titles
for the entire premises forthwith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) No work
shall be commenced by the Tenant until all drawings and specifications have been approved in writing by the Landlord and until the Tenant
has secured approval and permits from all authorities having jurisdiction and submitted proof of same to the Landlord. The Tenant shall
complete all work in a good and workmanlike manner, and in strict accordance with the drawings and specifications approved by the Landlord.
The Tenant agrees to indemnify and save the Landlord harmless from any and all loss, damage or injury which may result from the Tenant's
activities in the entire premises in completing the Premises. The Tenant acknowledges and agrees that there may be inconvenience associated
with completing either Landlord's Work, Landlord Construction, or Tenant's Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) If the
Tenant does not comply with the provisions of the Lease or any other agreement relative to the construction or occupation of the Premises,
including this Schedule, the Landlord, in addition to and not in lieu or by other rights or remedies, shall have any or all of the following
rights in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 declare all fees, charges and other sums payable by the Tenant to the Landlord pursuant to
 this Schedule to be rent and to be collectable as rent under the provisions of this Lease;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 declare and treat the Tenant's non-compliance as a default or breach of covenant under the
 Lease and exercise any right available under the provisions of the Lease, including the right
 of termination.

3. <u>Removal of Improvements and Fixtures</u>:

The Landlord agrees that the Tenant shall not have the obligation to restore the Premises, or pay for same, to the base building or original condition at the expiry or earlier termination of the Lease. At the Landlord's discretion, the Tenant shall remove all non typical leasehold improvements including IT/data cabling.

All Leasehold Improvements in or upon the Premises shall immediately upon their placement be and become the Landlord's property without compensation therefor to the Tenant. Except to the extent otherwise expressly agreed by the Landlord in writing, no Leasehold Improvements, trade fixtures, furniture or equipment shall be removed by the Tenant from the Premises either during or at the expiration or sooner termination of the Term except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Tenant shall, prior to the end of the Term, remove such of the non-typical leasehold improvements,
 including IT/data cabling and trade fixtures installed by the Tenant in the Premises as the
 Landlord shall require to be removed or pay to the Landlord the amount reasonably estimated
 by the Landlord for the cost of such removal plus 15% of such cost to compensate the Landlord
 for the administration of such work; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Tenant may, at the time appointed by the Landlord and subject to availability of elevators
 (if installed in the Building), remove its furniture and equipment at the end of the Term,
 and also during the Term in the usual and normal course of its business where such furniture
 or equipment has become excess for the Tenant's purposes or the Tenant is substituting therefor
 new furniture and equipment.

If the Tenant fails to remove its non-typical leasehold improvements, including IT/data cabling and trade fixtures as required by the Landlord at the expiration or earlier termination of this Lease, at the option of the Landlord, the trade fixtures shall become the property of the Landlord and the Landlord may enter the Premises and remove the non- typical leasehold improvements, including IT/data cabling and trade fixtures or portion thereof from the Premises. In doing so the Landlord may, without liability on the Landlord's part, and without notice to the Tenant, enter the Premises and remove such non- typical leasehold improvements, including IT/data cabling and trade fixtures and repair any damage to the Building caused by such removal at the Tenant's expense, which shall be paid by the Tenant to the Landlord on demand, and such non-typical leasehold improvements, including IT/data cabling and trade fixtures may, without notice to the Tenant or to any other Person and without obligation to account for them, be sold, destroyed, disposed of, or used by Landlord in such manner as Landlord determines, or may be stored in a public warehouse or elsewhere, all at the Tenant's expense, plus an administration fee of 15% of all of such costs and expenses, which shall be paid by the Tenant to Landlord on demand.

In the event the Landlord elects that the Tenant shall perform any of the required work to complete the removal of its non-typical leasehold improvements, including IT/data cabling and trade fixtures or portion thereof, then:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Tenant shall submit detailed demolition drawings to the Landlord for its prior approval and
 such work shall be completed under the supervision of the Landlord plus an administration
 fee of 15% of the cost of such work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Tenant shall, at its expense, repair any damage caused to the Building by such removal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Tenant shall effect such removal by the later of: (A) the end of the Term; and (B) 15 days
 after the Landlord's notice, provided that in the event of termination of this Lease prior
 to the expiry of the Term, such removal shall be completed no later than 15 days after the
 date the Landlord recovers possession of the Premises; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if
 the Tenant fails to complete any work referred to in this section within the period specified,
 the Tenant shall pay compensation to the Landlord for damages suffered by the Landlord for
 loss of use of the Premises, which damages shall not be less than 150% of the per diem Rent
 payable during the last month preceding the expiry or earlier termination of the Term.

Notwithstanding the foregoing or any law to the contrary, if the Tenant or any of the Tenant's agents, contractors, invitees, or any Person for whom the Tenant is legally responsible creates or is permitted to bring to the Building or the Premises any Hazardous Substances or if the conduct of the Tenant's business shall cause there to be any Hazardous Substances in or at the Building or the Premises, such Hazardous Substances shall be and shall remain the sole and exclusive property of the Tenant and shall not become the property of the Landlord regardless of the degree of affixation to the Premises or the Building of the Hazardous Substances or the goods containing the Hazardous Substances.

4. <u>For the purpose of this Lease, and except as specified in the Lease</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the term
"Landlord's Work" shall mean finishing the Premises in a manner and in colours standard to the Building which, without limiting
the generality of the foregoing, will include those items set out in Schedule F attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the term
"Tenant's Work" shall mean all work other than Landlord's Work and Landlord's Construction required to be done to complete
the Premises for occupancy by the Tenant. Tenant's Work shall not be undertaken or commenced by the Tenant until:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all
 permits necessary for the installation of the Tenant's improvements and approval have been
 obtained by the Tenant from applicable municipal and other government departments, prior
 to the commencement of the installation by the Tenant, and copies provided to the Landlord;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a
 certificate of insurance has been provided to the Landlord confirming compliance with the
 requirements of this Lease; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) proper
 documentation has been provided by the Tenant to the Landlord verifying that provisions have
 been made by the Tenant for payment in full of all costs of Tenant's Work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All improvements
to the Premises shall conform to the quality standards of the Building. The Tenant shall use an architect to design and prepare working
drawings and specifications of Tenant's Work and shall submit such drawings and specifications for the Landlord's prior written approval.

**SCHEDULE F - LANDLORD'S WORK AND TENANT'S WORK**

Only those items enumerated below as Landlord's Work will be provided and installed by the Landlord in the Premises on a "once only" basis at the Landlord's expense in accordance with the Landlord's choice of materials. All the Landlord's Work will consist of site preparation and construction of the base building and will be done in accordance with the plans prepared by the Architect subject to changes required by the Landlord, its consultants or governmental authorities. All other work required for the Premises, including those items enumerated as Tenant's Work will be provided and installed by the Tenant, at the Tenant's sole cost and expense. Except for the items shown as Landlord's Work, the Premises are leased on an "as is, where is" basis and there are no representations or warranties concerning the Premises or the Building except as contained herein.

<u>Landlord's Work</u>

The Landlord and Tenant agree that there is no Landlord's Work. The Landlord and Tenant agree that there is Landlords Construction, as provided under Schedule G and Schedule G-1.

<u>Tenant's Work</u>

1. All
 improvements to Premises in excess of the Landlord's Construction including all further
 electrical and mechanical requirements.

2. Any
 changes desired by the Tenant to the Landlord's Construction are subject to the Landlord's
 approval and shall be made at the Tenant's expense.

3. All
 permits and approvals necessary for the installation of the Tenant's improvements shall be
 obtained by the Tenant from applicable municipal and other governmental departments, prior
 to the commencement of the installations by the Tenant.

4. All
 plans for Tenant improvements must be submitted to the Landlord and be prepared in accordance
 with the Construction Manual Rules and Regulations (the "Construction Manual")
 for the Building.

5. There
 shall be no fees payable by the Tenant to the Landlord in respect to Tenant's Work.
 The Tenant, however, shall be responsible for reasonable out of pocket costs, if any, incurred
 by the Landlord regarding the Tenant's Work.

**SCHEDULE G - ADDITIONAL PROVISIONS**

**1.** **Landlord's Construction** 

The Landlord will be responsible for all the work required by the Tenant or necessary to complete the Premises for occupancy and conduct its business, including the work described in the attached Schedule G-1 ("Landlord's Construction") and any additional work as required by the Tenant and agreed to by the Landlord to be included in Landlord's Construction The Landlord's Construction shall be to the Landlord's account to a maximum of fifty five ($55.00) dollars per square foot of Rentable Area of the Premises (the "Construction Allowance"), based on the final space plan in Schedule A, inclusive of all materials, design fees, construction costs, drawings, including electrical, mechanical, structural and engineering, and permits with consultation with the Tenant. Any additional Landlord's Construction required, or reasonable out of pocket costs incurred by the Landlord due to changes by the Tenant or in addition to the items outlined in Schedule G-1 shall be enumerated and agreed to by the Tenant and shall be amortized on a straight line basis and either added to the Basic Rent payable over the Term calculated at 9% interest rate up to a maximum of sixty five ($65.00) dollars per square foot of Rentable Area, or the Tenant shall pay any additional costs in excess of the Construction Allowance upon receipt of an invoice from the Landlord. For clarity, for each additional five ($5.00) dollars per square foot of Rentable Area in Construction Allowance over and above $55.00, the rental rates will increase by one dollar and seven cents ($1.07) per year for each of the 6 year Term. By way of an example, the following outlined the Basic Rent for a $65.00 Construction Allowance:

---

| | |
|:---|:---|
| March 1, 2023 to February 28, 2025: | $21.14 |
| March 1, 2025 to February 28, 2027: | $22.14 |
| March 1, 2027 to February 28, 2029: | $24.14 |

---

If the costs of the Landlord's Construction is less than then Construction Allowance, including any supplemented items and the Tenant's requirements for data, cabling and IT, the Landlord shall apply same towards Basic Rent as it comes due under the Lease. It is agreed to between the Landlord and Tenant to be transparent on costs of construction of the Premises with consultation with the Tenant to meet expectations for design and final finishes.

**2.** **Parking** 

So long as the Required Conditions are satisfied the Landlord agrees to make available to the Tenant and the Tenant shall take, as a licensee as of the commencement of the Fixturing Period, three (3) unreserved parking stalls throughout the Term for the Parking Facility, the size and location of such parking stalls to be determined and designated by the Landlord in its sole and unfettered discretion, subject to the Tenant executing and delivering the Parking Agreement. The Tenant shall pay parking fees to the Parking Facility Operator throughout the Term at the prevailing rates being charged for parking stalls in the Parking Facility, from time to time, which at of this date is $485.00, per permit per month, plus Goods and Services Tax. Where the prevailing parking rates in the Parking Facility are being generally increased by the Landlord, the Landlord shall be entitled to increase the Tenant's parking fees upon 30 days' written notice to the Tenant. Each such payment shall be made in advance on the first day of each month throughout the Term. At the Tenant's option, and subject to availability, the Landlord shall provide additional parking stalls on a month to month basis throughout the Term.

The Tenant's rights under this section shall terminate upon expiry or earlier termination of the Lease or the Landlord taking possession of the Premises. The Tenant acknowledges and agrees further that the Tenant's rights under this section are contractual rights only and do not form an interest in land. The Tenant's rights under this section are subject to and superseded by the Parking Agreement once executed and delivered by the Tenant and the Landlord.

Notwithstanding anything contained in this Lease, the Landlord may terminate the Tenant's entitlement to use some or all of the parking stalls if for any reason the Landlord will not be able to reasonably make the parking stalls available to the Tenant (including without limitation the demolition of all or part of the Parking Facility or some or all of the parking stalls no longer being available to the Landlord) and the circumstances giving rise to the Landlord's inability to make the parking stalls available to the Tenant are not of a temporary nature. The Landlord shall whenever possible give the Tenant not less than 30 days' written notice of such termination, provided that in no event shall the Landlord have any liability to the Tenant in connection with any failure to provide such 30 days' notice.

**3.** **Permitted Occupants** 

The Tenant may permit the right to occupy up to and including 50% of the Premises to a third party or parties that are affiliate or subsidiary companies for a period equal to all or a portion of the Term (the "Permitted Occupants"). The Tenant shall provide written notice to the Landlord of the Permitted Occupants and the Tenant agrees it is responsible for each Permitted Occupant within the Premises and shall be responsible for any and all costs associated with the Permitted Occupants, including but not limited to access cards and signage. This right to grant occupancy to a third party is exclusive to the Tenant and may not be assigned or transferred. As of the date of this Lease, Tangold Inc. and AdvEn Bitumen Innovation Inc. are Permitted Occupants.

**4.** **Extension Option** 

The Tenant shall have the option to extend the Term (the "Extension Option") and the Lease for one (1) extension term (the "Extension Term") of five (5) years upon giving the Landlord not less than six (6) months and not more than twelve (12) months prior written notice before the expiration of the Term of the Tenant's intention to extend.

The Extension Option shall be on the same terms and conditions as set out in the Lease except for Basic Rent, any further option to extend after commencement of the Extension Term and any rent abatement periods, leasehold improvement allowance or other tenant inducement whatsoever (other than parking rights granted herein). The Basic Rent during the Extension Term shall be the Market Rent (as hereinafter defined in this section) agreed upon or determined (as hereinafter set out).

For the purposes of this section, "Market Rent" shall mean the then current market rental rate per square foot per annum for similar size and type headlease tenants as at the date the Tenant exercises the Extension Option as agreed to by the Landlord and the Tenant to be applicable during the Extension Term by the 90th day before the end of the Term for comparable improved fixtured premises in comparable buildings of the same quality and similar location in the City of Calgary as the Building, including the Building, (without regard to subleased space) for a five (5) year term. Failing agreement by the parties as to the Market Rent applicable during the Extension Term by the 90th day before the end of the Term, the Market Rent shall be determined in accordance with the *Arbitration Act (Alberta).*

Until the Basic Rent has been determined as herein provided, the Tenant shall continue to pay (in addition to Additional Rent due under the Lease) the monthly instalments of Basic Rent payable before the commencement of the Extension Term and upon such determination the Tenant shall immediately make the appropriate adjustment payment, if any, to the Landlord together with interest thereon from the commencement of the Extension Term until the date of payment of such adjustment at the rate of 5% per annum in excess of the Prime Rate.

The Tenant shall enter into an amending agreement prepared by the Landlord or the Landlord's solicitors at the Tenant's cost evidencing the terms of the exercise of the Extension Option.

**5.** **Access to Amenities** 

Prior to the Fixturing Period, and upon execution of this Lease and the Tenant providing insurance in accordance with this Lease, the Tenant shall have access to the Tenant Lounge and Conference Centre located within the Building. Access to the Conference Centre shall be based on the Tenant's proportionate allocation as further defined in the tenant handbook for the Building.

**SCHEDULE G-1 - LANDLORD'S CONSTRUCTION**

On or before September 1, 2022, all work required for the Premises in order for the Tenant to occupy and conduct business within the Premises will be provided and installed by the Landlord as further outlined in Schedule G section 1 Landlord's Construction. The specifications below are subject to final drawings approved by the Tenant.

**AdvEn - Ampersand North Tower** 

**High Level Budget Outline Specifications**

---

| | |
|:---|:---|
| **Date:** | February 9, 2022 |
| **Project:** | AdvEn |
| **Project No.:** | 222001 |

---

Outline budget specifications based on attached lease assist plan and base building typical specifications.

**General: These specifications are based on preliminary assumptions to align with base building specifications of the Ampersand building complex only and are not to be considered final design or construction solutions. As no dimensions, design details or finishes have been verified, all quantities and intent are approximate and specifications are generic in nature.**

**See attached Demolition. Construction. Finish. & Reflected Ceiling Plans**

**GENERAL NOTES**

**DEMOLITION - N/A**

**<u>CONSTRUCTION</u>**

&nbsp;&nbsp;&nbsp;&nbsp;· New
 typical partitions to extend from floor to underside of finished ceiling. To be constructed
 of <sup>1</sup>/<sub>2</sub>" gypsum board each side of 2 1/2" steel studs, c/w
 batt insulation. Tape, fill and sand smooth for paint finish. See plan for plenum barrier
 locations. Provide backing at all TV monitor
and upper millwork locations.

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
 and install new full height swing doors and frames. Doors to be solid core wood, veneered /p ai nt e d finish. Hardware to suit full height doors,
 lever set, coat hook and floor mounted door step.

&nbsp;&nbsp;&nbsp;&nbsp;· All
 glazing to be framed glass demountable system with framed sliding glass doors

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
and install plywood backboard in server room painted with intumescent paint.

**MILLWORK**

&nbsp;&nbsp;&nbsp;&nbsp;· All millwork
to be plastic laminate with melamine interiors. Include for all hardware and soft close hardware on all drawers. Allow for adjustable
upper and lower shelving, 2 drawer banks and 2 pull out recycle and garbage units.

&nbsp;&nbsp;&nbsp;&nbsp;· Kitchen countertops to
be solid surface with 4" backsplash to match and copy room counter tops to be plastic laminate, unless otherwise noted.

&nbsp;&nbsp;&nbsp;&nbsp;· See
plans for keynoted specialty millwork.

**WALL FINISHES**

&nbsp;&nbsp;&nbsp;&nbsp;· Supply & install paint
finish throughout (high quality eggshell) -1 general colour and 1 accent colour, unless noted otherwise. Include all columns and
perimeter walls.

&nbsp;&nbsp;&nbsp;&nbsp;· Paint
convector cabinets. Remove covers for spray finish and reinstall.

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
and install 50% privacy glazing film on all office glazing

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
and install 80% privacy glazing film on all meeting room glazing

**FLOOR FINISHES**

&nbsp;&nbsp;&nbsp;&nbsp;· Supply & install carpet
tile where indicated, approx. $35.00-40.00/sq.yd. (supply only)

&nbsp;&nbsp;&nbsp;&nbsp;· Supply & install 4
" Rubber tight-lock resilient base throughout, unless otherwise noted. Include all columns and perimeter walls.

**CEILINGS AND LIGHTING**

&nbsp;&nbsp;&nbsp;&nbsp;· Repair existing ceiling grid and
allow for 15% new ceiling tile

&nbsp;&nbsp;&nbsp;&nbsp;· Relocate existing base building lighting to suit new construction.

&nbsp;&nbsp;&nbsp;&nbsp;· Allow for 4" LED pot lights as per plan

**MECHANICAL**

&nbsp;&nbsp;&nbsp;&nbsp;· Supply & install stainless steel single sink and typical
faucet in kitchen

&nbsp;&nbsp;&nbsp;&nbsp;· Rework HVAC to suit new construction layout

&nbsp;&nbsp;&nbsp;&nbsp;· Rework sprinklers as required to suit new construction layout

&nbsp;&nbsp;&nbsp;&nbsp;· Plumbing as required for sink and dishwasher

**ELECTRICAL**

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
and install 1 duplex, 1 Data and 1 voice for each office, workstation, small meeting rooms and reception desk.

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
and install 1 duplex, 1 data and 1 voice for the copier/printer location.

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
& install convenience outlets throughout office space as required

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
& install power for the fridge, dishwasher and microwave in the kitchen millwork and three duplex outlets over counter

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
& install 1 duplex at the waiting area in reception

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
& install 1 duplex at the counter in the copy millwork.

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
and install power and data at all TV monitor locations

&nbsp;&nbsp;&nbsp;&nbsp;· Supply
and install under carpet wiring and monument for power and data in boardroom(s) and large meeting rooms

&nbsp;&nbsp;&nbsp;&nbsp;· Rework
all exit signs and electrical life safety items as required to suit new construction layout

&nbsp;&nbsp;&nbsp;&nbsp;· See drawings
for additional electrical or data not noted above.

**ALTERNATES (Show as an addition or credit to base cost)**

&nbsp;&nbsp;&nbsp;&nbsp;1. In lieu
of demountable glass office fronts and sliding doors, supply and install 10 mm tempered glass with "u-channei" top and bottom
and full height solid core doors and frames, painted. Include all hardware.

&nbsp;&nbsp;&nbsp;&nbsp;2. Removal
of base building t-bar grid and acoustic ceiling tile as shown on alternate reflected ceiling plan. Include for some clean-up of conduit
and cables, some ductwork cleanup and painting of open ceiling and ductwork. Include new pendant lights as shown assuming $300.00 per
fixture. Include for sprinkler modification.

**SEPARATE PRICES (NOT INCLUDED IN BASE COST)**

**Exclusion notes:**

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Window coverings are considered to be base building.** 

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Appliances and all Audio Visual equipment are not included in this outline.** 

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Mountain Fresh water filtration system not included in this outline.** 

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **All permits are assumed in this outline** 

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Design and Engineering consulting fees are not in this outline.** 

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Tenant Moving costs are not included in this outline** 

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Tenant Furniture costs are not included in this outline.** 

**SCHEDULE H - BASE BUILDING WORK**

The Tenant and Landlord acknowledge, that in its normal course of operation and in accordance with Schedule C, the Landlord may from time to time, install, replace or repair the lighting fixtures, ceiling t-bar grid, ceiling tiles and blinds in tenant premises in the Building (the "Base Building Work") that may become damaged, broken or are no longer in operable condition. In conjunction with this Lease, the Landlord will, install, replace or repair the following:

&nbsp;&nbsp;&nbsp;&nbsp;1. New or
like new Base Building Standard blinds

&nbsp;&nbsp;&nbsp;&nbsp;2. New or like
new Base Building Standard lighting fixtures

&nbsp;&nbsp;&nbsp;&nbsp;3. New or
like new Base Building Standard ceiling t-bar grid

&nbsp;&nbsp;&nbsp;&nbsp;4. New or like
new Base Building Standard ceiling tiles

For the purposes of this Schedule H, Base Building Standard means the standard that the Landlord designates from time to time and there may be multiple different types of blinds, lighting fixtures, t-bar grid sizes and ceiling tiles at the same time within the Building.

**SCHEDULE I - SECURITY AGREEMENT**

Intentionally Deleted

**SCHEDULE J - INDEMNITY AGREEMENT**

Intentionally deleted.

## Exhibit 10.6

**Exhibit 10.6**

![](cm281_ex10-6img01.jpg)

**SUSTAINABLE DEVELOPMENT TECHNOLOGY CANADA**

**PROJECT FUNDING AGREEMENT**

**TABLE OF CONTENTS**

1.0 INTERPRETATION 3

2.0 TERM 7

3.0 CONTRIBUTION PAYMENTS 7

4.0 ELIGIBLE PROJECT COSTS 10

5.0 REPORTING 10

6.0 ACCOUNTS, AUDITS AND INSPECTIONS 11

7.0 COVENANTS OF THE RECIPIENT 11

8.0 REPRESENTATIONS AND WARRANTIES 12

9.0 INTELLECTUAL PROPERTY 14

10.0 CONFIDENTIAL INFORMATION 15

11.0 INDEMNITY 16

12.0 LIMITATION OF LIABILITY 16

13.0 TERMINATION OF AGREEMENT 16

14.0 ASSIGNMENT 20

15.0 DISPUTE RESOLUTION 20

16.0 PUBLICITY, ACKNOWLEDGEMENTS AND COMMUNICATIONS 21

17.0 NOTICES 21

18.0 GENERAL CONTRACT PROVISIONS 21

**<u>SCHEDULES</u>**

<u>Schedule A</u> Technology and IP Summary

<u>Schedule B</u> Project Summary, Objectives and Work Plan

<u>Schedule C</u> Project Budget, Funding Sources and Payment Schedule

<u>Schedule</u> <u>D</u> Consortium Members

<u>Schedule E</u> Project Reporting Requirements

<u>Schedule F</u> Environmental and Economic Benefits Forecast

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 2 of 38

**PROJECT FUNDING AGREEMENT**

**THIS PROJECT FUNDING AGREEMENT** (the "**Agreement**") is made this <u>25th</u> day of <u>March</u>, 2021, (the "**Effective Date**") between:

**CANADA FOUNDATION FOR SUSTAINABLE DEVELOPMENT TECHNOLOGY**

(**"SDTC"**)

and

**ADVEN INDUSTRIES INC.**

(**"Recipient"**)

**RECITALS**

A. SDTC
is a not for profit foundation constituted for the purpose of fostering the development and adoption of technologies that contribute
to Sustainable Development Technologies infrastructure in Canada by contributing to the rapid development, demonstration and pre-commercialization
of technological solutions that address climate change, clean air, clean water and clean soil.

B. SDTC entered into Contribution Agreement Eight dated August 27, 2018 pertaining to the Sustainable Development Technology Fund with Her Majesty the Queen in Right of Canada represented by the Minister of Industry.

C. SDTC and the Recipient agree that for the Recipient to carry out the Project entitled: 300 t/y AdvEn Super Activated Carbon Commercial Demonstration Plant as described in the Proposal dated October 25, 2020 (the "**Proposal Date**") and Work Plan attached as <u>Schedule B</u> and assigned the Project number SDTC-2021-A-3754, the Recipient will require financial assistance from SDTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. SDTC is willing to provide funding to the Recipient for the Project on the terms and conditions contained in this Agreement.

**THEREFORE**, SDTC and the Recipient agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.0** **INTERPRETATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Definitions

"**Acceptance**" means written acknowledgement by SDTC or any of its delegates, acting reasonably, that the reports or other documents submitted to SDTC conform to the requirements of this Agreement, and "**Accept**" means the act of providing an Acceptance.

"**Background Intellectual Property**" means all intellectual property that is not first conceived, developed or reduced to practice by the Recipient pursuant to the Project and that is proprietary to the Recipient.

"**Budget**" means the Project Budget listed in <u>Schedule C</u>.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 3 of 38

"**Completion Date**" means the date when the Project is completed.

"**Confidential Information**" means any information of a disclosing party that is confidential to the disclosing party and disclosed by the disclosing party to the receiving party (a) in writing marked as "Confidential" (or like designation) at the time of disclosure, or (b) in any other manner identified as confidential at the time of disclosure and summarized and designated as confidential in a written memorandum delivered to the receiving party within 30 days of the disclosure.

"**Consortium**" means the entities listed in <u>Schedule D</u> collectively.

"**Consortium Member**" means a member of the Consortium, who through collaboration, cooperation and contribution of resources, participates in carrying out the Project.

"**Contingency Fee**" means any payment that is contingent upon a degree of success in soliciting or obtaining this Agreement, including the funding contemplated by this Agreement, or negotiating any of its terms.

"**Contribution Agreement**" means the Contribution Agreement Eight dated August 27, 2018 between SDTC and Her Majesty the Queen in Right of Canada.

"**Development**" means the translation and technological advancement of applied research findings into a plan, blueprint, design or implementation of new, modified or improved products, processes or services, including the creation and testing of a prototype not intended to be commercially used within the Period of Funding.

"**Eligible Project**" means a Project carried on, or primarily carried on, in Canada by a Recipient to develop and demonstrate new Sustainable Development Technologies.

"**Eligible Project Costs**" means costs that are directly attributable to the Project and consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) professional,
scientific, technical and contractual services costs (including trades, contracts for project and financial audits, third party verification);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) field testing services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) feasibility studies related to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) salaries and benefits, including administrative labour related to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) professional and administrative fees related to obtaining an Intellectual Property Right;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) licence fees and permits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) supplies and equipment, including the costs to purchase, rent, fabricate and install supplies and equipment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) furniture (pro-rated amount as applicable);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) purchase, installation, testing and commissioning of equipment, materials and products, including diagnostic and testing tools and instruments, repair and upgrade;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) laboratory and field supplies and materials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) reasonable travel and conference expenses related to the Project;

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 4 of 38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) printing and production services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) shipping costs, including customs costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) utilities, waste removal, consumables (i.e. items used up completely during the Project such as motor oil, lubricants, transmission fluids);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) data collection services, including processing, analysis and management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) communication and distribution costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) translation costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) capital items specifically required for the delivery of the Project, including the lease of land or license to use land, data collection equipment, prototypes, pilot plants or demonstration facilities, provided that they have no residual value beyond the Period of Funding, as determined by Recognized Accounting Standards; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) the depreciation expense of capital items during the Period of Funding (i.e. cost of utilization) that have residual value as determined by Recognized Accounting Standards.

"**Environmental Assessment**" means an environmental assessment conducted in accordance with the *Canadian Environmental Assessment Act*, or required under any other applicable federal, provincial, territorial or municipal legislation.

"**FAA**" means the *Financial Administration Act* (Canada).

"**Government Funding**" means any grant, loan or other financial assistance from any federal, territorial, provincial or municipal government or government agency, including funding from SDTC pursuant to this Agreement and federal and provincial tax credits that relate to Project development work.

"**including**" (or "**includes**") means including (or includes) without limitation.

"**Intellectual Property Right**" means all tangible and intangible and now known or hereafter existing worldwide (a) rights associated with works of authorship, including copyrights and moral rights, (b) trade secret rights, (c) patents, designs, algorithms and other industrial property rights, (d) all other intellectual and industrial property and proprietary rights of every kind and nature throughout the universe and however designated (other than trademark and trade name rights and similar rights), whether arising by operation of law, contract, license or otherwise, and (e) all registrations, applications, renewals, extensions, continuations, divisions or reissues in force now or in the future (including rights in any of the foregoing).

**"Market Impact**" means the Technology Impact that is attributable to the market penetration of the Project's technology or technologies.

"**Milestone**" means completion of a measured Project activity as set forth in <u>Schedule B,</u> the achievement of which entitles the Recipient to submit Project reports to SDTC for payment of an installment of the Contribution.

"**Minister**" means the Minister within the meaning of the *Canada Foundation for Sustainable Development Technology Act* (Canada).

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 5 of 38

"**Non-Eligible Project Costs**" mean any costs other than Eligible Project Costs that include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) general overhead costs of the Recipient, including operating costs related to general maintenance and repairs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) costs to decommission the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) capital costs associated with ongoing scientific or technical activities of the Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) costs associated with the subsequent diffusion of the technology;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) fees and expenses incurred in relation to lobbying or government relations activities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) contingency Fees; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) legal and financing fees and costs, other than legal fees for obtaining an Intellectual Property Right.

"**Payment Date**" means the forecast date on which an installment of the Contribution is paid by SDTC to the Recipient.

"**Period of Funding**" means a maximum five-year period beginning on the Project start date listed in section 3.1 during which the Project may receive funding from SDTC, excluding the five-year reporting period that follows the Project's completion.

"**Project**" means the Project described or referred to in <u>Schedule A and Schedule B</u>, and defined in the Proposal.

"**Project Expense Report**" means the report that summarizes the project expenses incurred during the Period of Funding.

"**Project Impact**" means the Technology Impact attributable to the Project, taking into consideration both positive and negative impacts.

"**Project Intellectual Property**" means all intellectual and industrial property developed, produced, created or invented in connection with the performance of the Project including, data, techniques, methods, processes, know-how, inventions, improvements, enhancements, designs, formulae, photographs, drawings, plans, specifications, reports, studies, technical and procedural manuals, programs (including firmware and software, in source code and object code form, whether susceptible to copyright or not), and Confidential Information (including technical data and customer and supplier lists, trade secrets, know-how and databases) and all associated Intellectual Property Rights.

"**Proposal**" means the written document(s) submitted to SDTC by the Recipient in response to SDTC's invitation to the Recipient to submit a detailed Project proposal.

"**Recognized Accounting Standards**" means recognized standards for financial reporting that are accepted sources of generally accepted accounting principles in Canada. Canada's Accounting Standards Board has adopted International Financial Reporting Standards (IFRS) as the accounting standard to be used by publicly accountable enterprises. Accounting Standards for Private Enterprises (ASPE), Accounting Standards for not-for-Profit organizations (NFPO's), and Public Sector Accounting Standards (PSAS) are also recognized by Canada's Accounting Standards Board.

**"Security Interest"** means any security interest in, or any lien, charge or encumbrance on, the Project Intellectual Property.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 6 of 38

"**Sustainable Development**" means the development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

"**Sustainable Development Technologies**" means technologies that make progress towards Sustainable Development and are related to climate change, clean air, clean water or clean soil.

"**Technology Impact**" means the increase or decrease of greenhouse gases and airborne contaminants, the increase or decrease of contaminants in water and soil, and the increase or decrease in water usage attributable to a technology or technologies, achieved through emission reductions or removal enhancements, and calculated using generally accepted practices as reasonably determined from time to time by SDTC.

"**Work Plan**" means the Work Plan and Statement of Project Objectives for the Project attached as <u>Schedule B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Where
there is inconsistency between a provision in the Agreement and a Schedule or the Proposal, a specific provision takes precedence over
a general provision. Otherwise, the order of precedence is this Agreement, the applicable Schedule and the Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 Where any statement in this Agreement is expressed to be made by any party to its knowledge, it means such knowledge as is actually known to, or would have or should have come to the attention of, such party. If such party is a corporation, it must confirm making reasonable inquiries of all officers and employees who have overall responsibility for or knowledge of the matters relevant to such statement. Any reference to a Recipient's knowledge with respect to a Consortium Member refers to such knowledge based on the Recipient's reasonable due inquiry of the officers and employees of such Consortium Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4 The following Schedules are attached to and incorporated in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Schedule A</u> Technology and IP Summary

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Schedule B</u> Project Summary, Objectives and Work Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Schedule C</u> Project Budget, Funding Sources and Payment Schedule

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Schedule D</u> Consortium Members

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Schedule E</u> Project Reporting Requirements

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Schedule F</u> Environmental and Economic Benefits Forecast

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.0** **TERM** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The term of this Agreement commences on the Effective Date and, unless terminated earlier in accordance with Section 13.0, continues in full force and effect until the Acceptance by SDTC of the fifth annual post-Project report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.0** **CONTRIBUTION PAYMENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 Subject to the terms of this Agreement, SDTC will pay the Recipient a maximum of $3,850,000, which constitutes SDTC's "Contribution".

The Contribution is payable in installments, as provided in the payment schedule in Schedule C.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 7 of 38

SDTC will not make any payment for Project costs incurred by the Recipient prior to the Project start date of February 1, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Notwithstanding
any other provision of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
installment amounts within the payment schedule are calculated based on SDTC's Contribution, which represents 38.8% of the Eligible
Project Costs, as provided in the Project Budget in Schedule C;

&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 installment amounts may be adjusted by SDTC during the Project Period if it is reasonably determined by SDTC that the actual Eligible Costs are materially less than the budgeted Eligible Costs listed in the Project Budget;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the SDTC Contribution may not exceed 50% of the Eligible Project Costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Recipient will ensure that the Consortium collectively contributes a minimum of 25% of the Eligible Project Costs from non-governmental sources. This contribution can be in the form of cash, in-kind goods or services, or a combination of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) SDTC is not obligated to pay the Contribution or any installment unless SDTC receives sufficient allocated funds from the Government of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) SDTC is not obligated to pay the Contribution or any installment unless the Recipient, on or before each Payment Date, establishes to SDTC's satisfaction that the Recipient has the financial capacity to finance the Project; 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;(g) the Recipient will, if requested, declare and certify to SDTC in writing all direct sources of funding for the Project, whether in place, requested or anticipated to be requested, including Government Funding identified by specific government programs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Installments of the Contribution are to be paid to the Recipient by SDTC upon the achievement of various Milestones and upon receipt and Acceptance by SDTC of all associated Milestone reports. Upon receipt and Acceptance by SDTC of associated Milestone reports, SDTC will endeavour to provide the Project payment within 45 days. If a Milestone report is not Accepted by SDTC, then SDTC will give notice of the rejection to the Recipient, together with its reasons for the rejection, and the Recipient has 20 days to provide revised reports in support of such claim. SDTC has 10 days to provide notice of Acceptance or rejection of revised reports. If the claim is again rejected by SDTC, then such process and time periods for the submission of reports continue until the claim is Accepted or the Agreement is terminated. The reasonable rejection by SDTC of any claim after three submissions constitutes an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 SDTC will withhold 10% (the "**Holdback**") from each installment of the Contribution payable until:

&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 Project has been completed to the satisfaction of SDTC;

&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) all required reports have been received and approved by SDTC; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) SDTC has Accepted the Project Financial Audit (or has determined that no Project Financial Audit is required);

at which time, SDTC will, subject to Section 3.5, pay the Holdback to the Recipient.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 The obligation of SDTC to make a payment to the Recipient of each installment of the Contribution is subject to the fulfillment, or the waiver by SDTC in its sole discretion, of each of the following conditions on or before the time of each such payment:

&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) *Accuracy of Representations and Warranties*. Each representation and warranty contained in <u>Section 8.0</u> must be true on and as of the Payment Date with the same force and effect as though such representation and warranty had been made on and as of that 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;(b) *Performance*. The Recipient must have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 SDTC is not obligated to pay any part of a claim after March 31, 2026 unless SDTC first obtains in form satisfactory to SDTC authorization from the Government of Canada in accordance with the Contribution Agreement to disburse funds after such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.7 The Recipient confirms that the environmental assurances
and disclosures set forth in the Proposal are true in all material respects, and that:

&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) if the Project requires an environmental assessment under federal, provincial, territorial or municipal legislation, such assessment has been undertaken and SDTC has been provided with a summary of the results of the required environmental assessment; 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;(b) if the Project does not require an environmental assessment under federal, provincial, territorial or municipal legislation, the Recipient has provided to SDTC a statement indicating that a self-assessment of environmental impacts was conducted and that any necessary mitigating measures will be implemented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.8 The occurrence of any one or more of the following events
constitutes an overpayment:

&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) SDTC pays a claim and later determines that the claim contained a cost that was a Non-Eligible Project Cost (in which case the amount of overpayment is the amount paid in respect of the Non-Eligible Project Cost);

&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 Recipient is not in compliance with Section 3.2(d) or, without SDTC's consent, the Consortium provides less funding for the Project than specified in the Budget (in which case the amount of overpayment is the difference between the amount of the Contribution actually paid by SDTC and the amount that SDTC would have paid if the Contribution had been calculated based on the amount of funding actually provided by the Consortium);

&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) SDTC's Contribution to the Project exceeds 50% of the Project's Eligible Project Costs (in which case the amount of overpayment is the difference between the amount of the Contribution actually paid by SDTC and 50% of the Project's Eligible Project Costs);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Recipient receives revenues from the sale of Project assets during the Period of Funding, or there is a commercial use of the Project's assets unrelated to the Project that results in income during the Period of Funding (in which case, the amount of overpayment is equal to the proportion of such proceeds or income that SDTC's Contribution bears to the Eligible Project Costs of the Project, in each case to a maximum amount equal to the Contribution); or

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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;(e) The Recipient pays dividends or makes a distribution to its shareholders from Project revenues (in which case, the amount of overpayment is equal to the dividends paid or distribution made, up to a maximum amount equal to the Contribution).

The amount of any overpayment constitutes a debt due to SDTC, and the Recipient must repay such amount to SDTC immediately. SDTC is entitled to offset any such overpayment amount against future installments of the Contribution.

The sale of a Project asset includes the sale of any capital item, Project Intellectual Property, material or equipment considered to be an Eligible Project Cost, and the commercial use of Project assets includes the sale or lease of any goods or services produced using Project assets, excluding non-exclusive licensing or sub-licensing of Background Intellectual Property in the normal course of business, so long as such non-exclusive or sub-licensing of Background Intellectual Property does not include any Project Intellectual Property.

The Recipient will immediately give notice in writing to SDTC of the occurrence of an event giving rise to an overpayment, specifying in detail the nature of the event.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.9 The Recipient will provide SDTC with written notice of any proposed reasonable amendments to the Work Plan, Milestones, Budget and anticipated results. SDTC has the right to review the proposed amendment and consult with the Recipient and external consultants. Following SDTC's receipt of the amendment notice: (i) if SDTC at SDTC's own discretion or after consultation, does not agree with the proposed amendment, it will not be Accepted; or (ii) if SDTC agrees with the proposed amendment, it will advise the Recipient in writing and this Agreement will be amended in accordance with Section 18.2.

**4.0** **ELIGIBLE PROJECT COSTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The Recipient is responsible for certifying that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all costs described as Eligible Project Costs in the Project Expense Report and submitted to SDTC for payment of a Contribution installment are accurate and are Eligible Project Costs;

&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) all labour rates submitted as Eligible Project Costs in the Project Expense Report are equal to the salary of the actual employee performing the work, and all costs for labour rates claimed are directly related to the Project; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the cost claimed for any services or equipment submitted as an Eligible Project Cost do not include profit to the Recipient or any Consortium Member or any party related to or otherwise not at arm's length to any of them and is supported by timesheets or invoices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 SDTC will determine whether a cost is an Eligible Project Cost, and such determination is final and binding upon the Recipient.

**5.0** **REPORTING** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The Recipient will submit to SDTC the reports listed in <u>Schedules B and E</u> and otherwise reasonably requested by SDTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 Subject to Section 10.0, the Recipient grants to SDTC a limited license to copy and distribute all information submitted to it pursuant to this Section 5.0 for the purposes of SDTC fulfilling its obligations under this Agreement and to the Government of Canada.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 Upon Project completion, the Recipient will certify to SDTC as to any Government Funding received in addition to that outlined in the Proposal, and any amounts owing to SDTC resulting from over-funding due to changes in Project costs or accounting errors.

**6.0** **ACCOUNTS, AUDITS AND INSPECTIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 During the term of this Agreement and for a period of five
years following the completion of the Project, the Recipient will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) maintain proper books, accounts and records of its financial contributions and costs and expenses incurred and paid in connection with the Project, and keep related supporting documentation such as invoices and timesheets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain proper and accurate records relating to the environmental impact, sales revenues, employment impacts, technology developments (including patents and patent applications) and other impacts of the Project; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make available to SDTC the items listed in Sections 6.1(a) and 6.1(b) and permit SDTC to examine, audit and take copies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 At SDTC's discretion, a third party auditor selected by SDTC may audit the Recipient's accounts and records in relation to the Project, including Eligible Project Costs, at the expense of the Recipient. Such auditor will prepare a Project Financial Audit Report **.** SDTC's auditors may also audit the Recipient's accounts and records at the expense of SDTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 The Recipient will ensure that SDTC or its designate has access during normal working hours to any location where the Project is being carried out in order to inspect and assess the progress of the Project and all matters relating to the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 The Recipient will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) permit the Minister and the Auditor General of Canada or their representatives:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 audit or cause to have audited, the accounts and records of the Recipient related to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 access the accounts and records of the Recipient (including this Agreement) and to access the business premises and Project site of the Recipient in order for the Minister and the Auditor General to conduct audits;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit the Government of Canada's evaluators to
 contact and interview or survey the Recipient where such evaluators determine
that such contact and interview or survey are necessary and to obtain copies of documents in relation to the Project that the evaluators
may reasonable request to conduct evaluations pursuant to the *Financial Administration Act* (Canada) and in compliance with the
Treasury Board policy, *Policy on Results;* and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) permit the Minister to contact and interview or survey the Recipient where such contact and interview or survey are necessary and to obtain copies of documents in relation to the Project that may reasonably be requested in order to develop government policy.

**7.0** **COVENANTS OF THE RECIPIENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 The Recipient will complete the Project by the Completion Date unless extended by SDTC, in its sole discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 The Recipient will carry out the Project promptly, diligently and in a professional manner and in accordance with the terms and conditions of this Agreement and the Proposal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 The Recipient will comply with all federal, territorial, provincial and municipal laws in relation to the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 The Recipient will use reasonable efforts to ensure that, within five years of the Completion Date, the Project Intellectual Property and technology developed in connection with the Project is made commercially available for the benefit of Canadians.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 Except as provided in the Proposal, the Recipient will not subcontract the Project without the prior written consent of SDTC. The subcontract must provide that the subcontractor complies with the terms and conditions of this Agreement applicable to the subcontract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 The Recipient will maintain valid employer's liability, property and business insurance of the kinds and in the amounts customary for the nature and scope of business carried on by the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 The Recipient will give written notice to SDTC of any (i) change in control of the Recipient, and (ii) any change to the entities listed in <u>Schedule D</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 Subject to confidentiality obligations of the Recipient to third parties, the Recipient will provide access to any individual conducting an evaluation of SDTC that is in the employ of, or engaged by, Her Majesty the Queen in Right of Canada, as represented by the Minister to the appropriate records and information sources relating to the Project to enable the evaluator to conduct such evaluation. The Recipient will cooperate with the evaluator to carry out such evaluation of SDTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 The Recipient will maintain status as a corporation governed by the laws of Canada or a province or territory of Canada and will continue to be a party to a contract relating to the carrying out of the Project with at least one Consortium Member.

**8.0** **REPRESENTATIONS AND WARRANTIES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 The Recipient represents and warrants on its own behalf and on behalf of the Consortium and each Consortium Member, and the Recipient acknowledges that SDTC is relying on such representations and warranties for the purpose of entering into this Agreement and making payment of any installment of the Contribution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Corporate Power and Due Authorization.* The Recipient has the corporate power and capacity to enter into and perform its obligations under this Agreement. This Agreement has been duly authorized, executed and delivered by the Recipient and is a valid and binding obligation of the Recipient enforceable against it, subject to bankruptcy, insolvency, moratorium, reorganization and other laws relating to or affecting the enforcement of creditors' rights generally and equitable remedies, which may only be granted in the discretion of a court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Incorporation and Status.* The Recipient is incorporated and exists under the laws of the jurisdiction of its incorporation and is in good standing in each jurisdiction it is required to be qualified or licensed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Contribution Eligibility.* The Recipient satisfies the eligibility requirements established in this Agreement and the Project is an Eligible Project. The Recipient does not anticipate that there will be significant profits directly realized from the Project during the Period of Funding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Sources of Funding.* The Recipient satisfies the requirements of Section 3.2. All direct sources of funding for the Project, including Government Funding, are set out in <u>Schedule C</u> in the Project Funding Source Table.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) *No Conflicts.* The performance of the transactions contemplated by this Agreement and compliance with the obligations of the Recipient under this Agreement will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) conflict with or violate any provision of the constating documents of the Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) conflict with, result in a breach of, constitute (with or without notice or lapse of time or both) a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice, consent or waiver under, any contract, lease, sublease, license, sublicense, franchise, permit, indenture, agreement or mortgage for borrowed money, instrument of indebtedness or other arrangement to which the Recipient is a party or by which the Recipient is bound or to which its assets are subject, other than any of the foregoing events that do not and will not, individually or in the aggregate, have a material adverse effect on the Recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) result in a Security Interest imposed upon any assets of the Recipient; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) violate any order, injunction, statute, law, rule or regulation applicable to the Recipient or any of its properties or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Governmental Consents*. No consent, approval, order, authorization of, registration, qualification, designation, declaration or filing with any court, arbitration tribunal, administrative agency or commission or other governmental or regulatory authority or agency is required on the part of the Recipient in connection with the execution and delivery of this Agreement except filings made prior to and effective on the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Accuracy of Proposal and Eligible Project Costs.* All factual matters in the Proposal and in supporting material submitted are true and accurate. All estimates, forecasts and other related matters involving judgment were prepared in good faith. All costs submitted to SDTC as Eligible Project Costs for reimbursement as an installment of the Contribution are Eligible Project Costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Litigation*. There is no material action, suit, proceeding, judgment or governmental inquiry or investigation pending nor, to the Recipient's knowledge, is there any basis for or threat of them against the Recipient or any of the Consortium Members, or that questions the validity of this Agreement, or the right of the Recipient to enter into this Agreement, or that might result, either individually or in the aggregate, in a material adverse effect, nor is there any litigation pending, or, to the Recipient's knowledge, any basis for or threat of litigation, against the Recipient or any Consortium Member by reason of the actual or proposed activities of the Recipient or the Consortium Member.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Insurance*. The Recipient's insurance policies are in full force and effect, and the Recipient is not in default with respect to (i) the payment of any premium or (ii) any material provisions contained in such policies. The Recipient and, to the knowledge of the Recipient, each Consortium Member maintains valid worker's compensation insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Absence of Changes*.
 Since the Proposal Date, there has not been (a) any material adverse change in the assets, liabilities, financial condition or
 operations of the Recipient or, to the knowledge of the Recipient, the Consortium or any Consortium Member from those reflected in
 the Proposal; (b) any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting
the Project or the properties or business of the Recipient or, to the knowledge of the Recipient, any Consortium Member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Permits*. The Recipient has all requisite licenses, permits and certificates, including environmental, work, health and safety permits, from federal, provincial and local authorities necessary to conduct its business and to carry out the Project (other than licenses and permits not yet required, but that will be obtained in due course). The Recipient and to the knowledge of the Recipient, each Consortium Member has complied and will comply in carrying out the Project, in all material respects, with all applicable laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Environmental Matters.* The Recipient and each Consortium Member has complied and will comply in carrying out the Project, in all material respects, with all applicable environmental laws. The Recipient and to the knowledge of the Recipient, each Consortium Member complied with any requirements to perform an Environmental Assessment with respect to the Project and notified SDTC of the need for and the completion of such Environmental Assessment(s).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Disclosures*. Neither the Proposal or this Agreement, nor any Schedule, nor any report provided to SDTC in connection with the transactions contemplated by this Agreement, when read together, contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements not misleading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) *International Agreements*. To the knowledge of the Recipient, the trade and competition impacts resulting from the marketing and commercialization of the products resulting from the Project will not conflict with any international agreements in the markets in which it intends to participate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) *Contingency Fees*. The Recipient has not incurred any liability for and will not pay or agree to pay, either directly or indirectly, any Contingency Fees for (i) the solicitation, negotiation or obtaining of the Contribution for the Project, (ii) the transactions contemplated by this Agreement, or (iii) the entering into of this Agreement, to any person, including a broker, consultant or advisor.

**9.0** **INTELLECTUAL PROPERTY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Subject
to Section 13.3(d), title to all Intellectual Property Rights in Project Intellectual Property vests in the Recipient and/or Consortium
Members, in the manner agreed upon by the Recipient and the Consortium Members, and, for greater certainty, does not vest in SDTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 The Recipient will ensure that all employees or contractors working on the Project assign all Intellectual Property Rights in and to any Project Intellectual Property to the Recipient or a Consortium Member and that each person contributing to the development of Project Intellectual Property executes a written permanent waiver of moral rights (as defined in the *Copyright Act*) in any copyright arising in connection with the Project Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 The Recipient will disclose to SDTC all arrangements and agreements among the Consortium Members with respect to the ownership of Project Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 The Recipient will disclose to and update SDTC with any changes to all Security Interests on or against any Project Intellectual Property. In addition, throughout the term of this Agreement, the Recipient will disclose in advance to SDTC in writing its intention to grant a Security Interest over any part of the Project Intellectual Property in favour of a third party, including any Consortium Member.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 The Recipient will not and will ensure that no Consortium Member will, at any time before the date that is five years following the Completion Date, transfer or permit the transfer (by sale, assignment, exclusive license or otherwise) of any material portion of the Project Intellectual Property to a non-resident of Canada without the prior written consent of SDTC, which SDTC may grant or withhold in its sole discretion.

**10.0** **CONFIDENTIAL INFORMATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 Any Confidential Information received by either party (a "**receiving party**") pursuant to this Agreement may be used, disclosed or copied only for the purposes of and only in accordance with, this Agreement. The receiving party will use the same degree of care, but no less than reasonable care, used to protect its own confidential information and to prevent the unauthorized use, disclosure or publication of Confidential Information. The receiving party will:

&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) only disclose Confidential Information to its bona fide employees, contractors or suppliers who need to obtain access for purposes consistent with this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not make or have made any copies of Confidential Information except those copies that are necessary for the purposes of this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) affix to any copies it makes of the Confidential Information, all proprietary notices or legends as they appear on the copies of the Confidential Information originally received from the disclosing party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 The Recipient recognizes that SDTC is required to verify that the purpose and objectives of the Project are being achieved pursuant to the Contribution Agreement between SDTC and the Government of Canada. The Recipient will cooperate with SDTC to enable SDTC to effectively report to the Government of Canada, and SDTC may provide a copy of this Agreement to the Minister. SDTC will not disclose Confidential Information received from the Recipient to the Government of Canada unless such information is aggregated with similar information from other projects and is not attributed to the Recipient or other Consortium Members, in which case the information is deemed not to be Confidential Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 The receiving party will not be bound by obligations restricting
disclosure and use found in this Agreement with respect to any Confidential Information that:

&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) was known by the receiving party prior to disclosure;

&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) was lawfully in the public domain prior to its disclosure;

&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) was disclosed to the receiving party by a third party who is not in breach of any confidentiality obligation in respect of such information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is independently developed by the receiving party; 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;(e) is disclosed when disclosure is compelled pursuant to legal, judicial or administrative proceedings, or otherwise required by law, so long as the receiving party, to the extent legally permitted, advises the disclosing party of any such disclosure in a timely manner prior to disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 Except for disclosures authorized under the terms of this Agreement, the receiving party will notify the disclosing party immediately upon learning of any unauthorized disclosure of the disclosing party's Confidential Information.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 15 of 38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 The Recipient agrees that SDTC may provide Confidential Information to funding agencies of the Government of Canada or provincial, territorial or municipal governments, not-for-profit entities involved in providing funding to projects (such as Green Municipal Fund) and the Government of Canada's Clean Growth Hub (a whole-of-government focal point for clean technology focused on supporting companies and projects) for their consideration in connection with possible funding of the Project, in each case so long as they are subject to reasonable confidentiality obligations in respect of such Confidential Information.

**11.0** **INDEMNITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 The Recipient will indemnify SDTC and its board of directors, members, employees and agents and the Government of Canada from and against any claims, damages, losses, costs and expenses that they may at any time incur or suffer as a result of or arising out of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
injury to persons (including injuries resulting in death) or loss of or damage to property that is or is alleged to be caused by or suffered
as a result of the carrying out the Project, except to the extent caused by the negligence of SDTC, its board of directors, members,
employees or agents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any claim, demand or action for the infringement or alleged infringement of any Intellectual Property Right of a third party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any claim, demand or action made by a third party against them based upon SDTC's capacity as a provider of financial assistance under this Agreement, including any claim in respect of materials or services provided by a third party to the Recipient or to a subcontractor or supplier of the Recipient.

**12.0** **LIMITATION OF LIABILITY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 Neither party has any liability for any indirect, incidental, special or consequential damages, however caused and on any theory of liability (including negligence), arising out of this agreement, including loss of anticipated profits, even if such party has been advised of the possibility of such damages. These limitations apply notwithstanding any failure of essential purpose or any limited remedy. Except for claims under Section 11.1(b), neither party is liable to the other for damages in excess of the amount of the Contribution actually paid to the Recipient by SDTC pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 The Recipient acknowledges that SDTC may provide funding to numerous entities, some of which may be competitive with the Recipient or Consortium Members or which may be competitive with the technology developed in connection with the Project ()"**Competitive Entities** "). SDTC is not liable to the Recipient for any claim arising out of, or based on (i) the provision of funding by SDTC to any Competitive Entity; or (ii) actions taken by any partner, officer or other representative of SDTC to assist a Competitive Entity, whether or not such action has a detrimental effect on the Recipient or the Project. SDTC will in all circumstances maintain the confidentiality of all information provided to it by the Recipient in accordance with the terms of this Agreement.

**13.0** **TERMINATION OF AGREEMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 The following constitute events of default (each an "**Event of Default** "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Recipient becomes bankrupt or insolvent, goes into receivership, or ceases to carry on business, in the opinion of SDTC, or takes the benefit of any statute relating to bankrupt or insolvent debtors;

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 16 of 38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an order is made that is not being contested or appealed by the Recipient or resolution passed by the Recipient for the winding up of the Recipient or the Recipient is dissolved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Recipient has submitted materially false or misleading information or has made misrepresentations of a material nature to SDTC, other than in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Recipient makes a materially false or misleading statement concerning support by SDTC in an internal and/or public communication, other than in good faith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Recipient ceases its activities or substantially changes the nature of its business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Recipient has not met or satisfied in a material respect any of the material terms and conditions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Recipient has failed or neglected to pay SDTC any amount due in accordance with this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) SDTC, acting reasonably, rejects the third consecutive submission of any report in support of a claim under Section 3.3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 The events in paragraphs (c), (d), (e), (f) and (g) of Section 13.1 will only be considered Events of Default if the Recipient has been notified in writing by SDTC of the alleged default and the Recipient has not rectified the default to the satisfaction of SDTC within such period as SDTC may specify in the notice or has not demonstrated, to the satisfaction of SDTC, that it has commenced to rectify the default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 Upon the occurrence of an Event of Default, SDTC may, in its sole discretion exercise one or more of the following options:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) terminate the whole or any part of this Agreement, including any obligation by SDTC to make any payment under this Agreement, including any obligation to pay an amount owing prior to such termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) suspend any obligation by SDTC to make any payment under this Agreement, including any obligation to pay an amount owing prior to such suspension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) require the Recipient to repay forthwith to SDTC all or part of the Contribution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) cause the Recipient to convey all Project Intellectual Property directly to the Government of Canada and cause the Recipient to grant to the Government of Canada any license required to exercise the Intellectual Property Rights in the Background Intellectual Property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) have the Recipient transfer and assign to SDTC all of the Recipient's right, title and interest in and to equipment, capital assets and supplies purchased by the Recipient to carry out the Project (to the extent they were acquired using funds provided by SDTC); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) exercise any other remedy available to SDTC at law or in equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 If SDTC exercises its rights under Section 13.3(d), the Recipient
will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) do and execute or cause to
 be done or executed all acts necessary or reasonably required to give full effect to the assignment to the Government of Canada
 pursuant to Section 13.3(d) of the Recipient's rights in the Project Intellectual Property. The Recipient irrevocably designates and appoints SDTC and its duly authorized
officers and agents as the Recipient's agent and attorney in fact, to act for and on behalf of the Recipient to execute and file
any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent or copyright
registrations with the same legal force and effect as if executed by the Recipient;

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 17 of 38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) obtain a written permanent waiver of moral rights (as defined in the *Copyright Act* (Canada)), in a form acceptable to SDTC, from every author who contributed to any Intellectual Property Rights that arose from the Project and are subject to copyright protection; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) at the expense of SDTC, afford the Government of Canada all reasonable assistance in the preparation and prosecution of applications for registration of any Intellectual Property Right that arose from the Project.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 If, in the reasonable determination of SDTC, the Recipient fails to use commercially reasonable efforts to ensure that within five years of the Completion Date the Project Intellectual Property and technology developed in connection with the Project is made commercially available for the benefit of Canadians in accordance with Section 7.4, the Government of Canada is deemed to have been granted a non-exclusive, royalty-free, perpetual, transferrable right to use, commercialize, modify and sublicense the Project Intellectual Property and the Intellectual Property Rights in the Background Intellectual Property required for the Project Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.6 Transfer to Non-Resident

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If, at any time before the date that is five (5) years following the Completion Date, the Project Intellectual Property or a material portion of the Project Intellectual Property is transferred (by sale, assignment, exclusive license or otherwise) to a non-resident of Canada without obtaining the prior written consent of SDTC in accordance with Section 9.5, the Eligible Recipient will pay to SDTC an amount equal to the amount of the Contribution paid by SDTC pursuant to this Agreement plus an amount equal to ten percent (10%) of the Total Eligible Project Costs (as set out in the table entitled "Funding Source Summary" in Schedule C) incurred up to the time of transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If, at any time before the date that is five (5) years following the Completion Date, the Project Intellectual Property or a material portion of the Project Intellectual Property is transferred (by sale, assignment, exclusive license or otherwise) to a non-resident of Canada and the Recipient failed to provide notice to SDTC of the proposed transfer and to request SDTC's consent at least 45 days prior to the effective date of the transfer, in addition to the Recipient's payment obligation under paragraph (a), Canada will be deemed to have been granted a non-exclusive, royalty-free, perpetual, transferrable right to use, commercialize, modify and sublicense the Project Intellectual Property and the Intellectual Property Rights in the Background Intellectual Property required for the Project Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The provisions of paragraphs (a) and (b) do not apply in respect of a transfer of Project Intellectual Property or a material portion of the Project Intellectual Property to a non-resident of Canada if SDTC provides its consent to the transfer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.7 If the Recipient determines
 in good faith that: (i) the Project should be terminated prior to completion or (ii) at any time after completion of the Project,
 commercialization is not reasonably commercially feasible, the Recipient will provide SDTC with detailed written reasons for the
 termination of the Project or termination of commercialization. SDTC will have a period of 60 days to assess the Project and the
 reasons for its termination. During such assessment, SDTC may engage the services of consultants, for which the Recipient may, at
 SDTC's discretion, be required to pay the related fees and expenses. If SDTC agrees
that the Project or commercialization should be terminated, SDTC will give notice to the Recipient that as of such date:

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 18 of 38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this Agreement is terminated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SDTC has no obligation to pay any further installments of the Contribution, other than amounts due or accruing that have not yet been paid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.8 If SDTC does not agree that the Project should be terminated,
then SDTC will give notice to the Recipient that as of such date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this Agreement will be terminated in accordance with Section 13.3;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SDTC will have no obligation to pay any further installments of the Contribution, including amounts due or accruing, which have not yet been paid; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Recipient will transfer and assign to the Government of Canada all of the Recipient's right, title and interest in and to the Project Intellectual Property and provide to the Government of Canada any license required to exercise the Intellectual Property Rights in the Background Intellectual Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.9 SDTC may terminate this Agreement, terminate its obligations to make Contributions or reduce the amount of Contributions upon 30 days written notice to the Recipient without penalty, if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Contribution Agreement is materially amended, expired or terminated;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SDTC did not receive sufficient funds from the Government of Canada to enable SDTC to pay the Contribution, including as a result of a required appropriation by the Parliament of Canada being reduced or denied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an order is made or resolution passed for the winding up or dissolution of SDTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.10 If this Agreement is terminated in accordance with Section
13.9:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any claims submitted by the Recipient prior to the effective date of the Notice of Termination may be processed by SDTC in accordance with the terms of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) SDTC is not obligated to pay any further installments of the Contribution, including amounts due or accruing as of the effective date of the Notice of Termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Recipient releases SDTC from all claims relating to such termination (other than the payment of any part of the Contribution properly payable by SDTC to the Recipient in accordance with the terms of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.11 If upon termination of this Agreement, there are, at the
date of such termination, any amounts paid as part of the Contribution by SDTC to the Recipient that have not been expended by the Recipient
on Eligible Project Costs, the Recipient will, upon receipt of written notice from SDTC, repay all such amounts to SDTC in full. If the
Recipient does not repay all such amounts to SDTC within 30 days of the date of a written demand from SDTC to the Recipient requiring
such repayment, such failure to repay constitutes an Event of Default, and SDTC will have, in addition to all rights and recourses to
recover money owing at law or in equity, the rights set forth in Sections 13.3(d) and (e) and Section 13.4 of this Agreement.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 19 of 38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.12 Whether or not the transactions contemplated by this Agreement
are completed, the Recipient will pay all reasonable out-of-pocket, due diligence and other related expenses of SDTC including the fees
and expenses of legal counsel to SDTC relating to the negotiation and settlement of this Agreement and the fees paid to consultants and
advisors pursuant to Section 13.6. Such expenses, if incurred, may be deducted from an installment of the Contribution paid by SDTC to
the Recipient pursuant to the terms of this Agreement. The Recipient and Consortium Members will bear their respective expenses incurred
in connection with the negotiation, preparation, execution and performance of this Agreement and the transactions contemplated by this
Agreement, including all fees and expenses of agents, representatives, counsel and accountants, and in no event is SDTC responsible for
such costs.

**14.0** **ASSIGNMENT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 This Agreement may not be assigned in whole or in part by the Recipient without the prior written consent of SDTC, and any assignment made without that consent is void and of no force or effect.

**15.0** **DISPUTE RESOLUTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 If a dispute, claim, question or difference arises out of or relating to this Agreement or any breach of this Agreement, the parties will use reasonable efforts to settle such dispute, claim, question or difference. In doing so, they will consult and negotiate with each other, in good faith and understanding of their mutual interests, to reach a just and equitable solution satisfactory to both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 If any dispute arises out of or relating to this Agreement that the parties are unable to resolve using reasonable efforts to settle within a period of 30 business days, then upon written notice by a party to the other, either party may submit the dispute to arbitration in accordance with the *Arbitrations Act* (Ontario) and the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the reference to arbitration is to one arbitrator, appointed by mutual agreement of the parties, or if the parties fail to agree within 10 business days, any party may apply to a court of competent jurisdiction to appoint an arbitrator;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the arbitrator will be instructed that an arbitration decision is to be rendered in writing within 30 business days of the submission of the dispute to arbitration;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) unless otherwise agreed by the parties the arbitration will take place in Ottawa, Ontario, and will be conducted in English;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) each party will bear the cost of preparing its own case. The arbitrator has the right to include in the award the prevailing party's costs of arbitration and reasonable fees of attorneys, accountants, engineers and other professionals incurred by it in connection with the arbitration as the arbitrator considers fair and just in the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the arbitrator will resolve the dispute, and the arbitrator's decision is binding upon the parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) there is no appeal from any award or decision of the arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 The foregoing does not preclude any party from seeking interim
or injunctive relief.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 20 of 38

**16.0** **PUBLICITY, ACKNOWLEDGEMENTS AND COMMUNICATIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 The Recipient will acknowledge, including by word and/or wordmark, the financial support of SDTC and the Government of Canada in all publicly disseminated information relating to the Project unless otherwise directed by SDTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 The Recipient consents to the participation by SDTC or a representative of the Government of Canada at any public event relating to the Project organized by the Recipient, the Consortium or a third party and to have the event take place on a date mutually agreed upon by the Recipient and SDTC. If directed by SDTC, the Recipient will use the corporate name and logo of SDTC and the Government of Canada's wordmark.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3 No material prepared by the Recipient, the Consortium or a third party for promotional and general information of the Project, SDTC or the Contribution may be issued or distributed to the public without the prior written approval of SDTC. Such material must be submitted to SDTC for review and approval at least five business days prior to scheduled release to the public. At the request of SDTC, such material must be in both English and French. The Recipient will use the framework for press releases provided by SDTC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4 SDTC may issue materials prepared by SDTC for promotional and general information purposes that refer to the Recipient, the Consortium, the Project and the Contribution without the approval or consent of the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5 The Recipient will clearly identify the clientele of the Project activities and take the necessary measures to respect the spirit and intent of the *Official Languages Act* (Canada) to communicate with the public in the official language (i.e. English or French) of their choice. Where a significant demand exists for services from the Recipient to the public in either official language, the Recipient will endeavour to communicate to the public in that language.

**17.0** **NOTICES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 The Recipient will forward all notices, invoices and applicable reports relating to this Agreement to their assigned SDTC Investment Lead via e-mail, or via registered mail or courier to:

Sustainable Development Technology Canada

45 O'Connor Street, Suite 1850

Ottawa, ON Canada K1P 1A4

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2 Receipt is deemed: by registered mail, when the postal receipt is acknowledged by the other party; by electronic mail, when transmitted and receipt is confirmed; and by courier agency, when delivered.

**18.0** **GENERAL CONTRACT PROVISIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 *Time of Essence*. Time is of the essence in the performance of the obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.2 *Amendments*. This Agreement may only be amended by a written agreement signed by authorized representatives of both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.3 *Legal Relationship*. Nothing contained in this Agreement as between SDTC and the Recipient, or as between the Minister and the
 Recipient, creates the relationship of principal and agent, master and servant, settler and trustee, employer and employee, partner
 or joint venture, and neither party has any right to obligate or bind the other in any manner. The Recipient will not and will
 ensure that the Consortium Members do not, make any representation that the Recipient is acting as agent of either SDTC or the Minister nor present itself
or make any representation that could reasonably lead any member of the public to believe that the Recipient or any Consortium Member
is an agent of either SDTC or the Minister.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 21 of 38

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.4 *Severability.* If any provision of this Agreement is determined to be invalid or unenforceable, that provision is deemed severed. The remaining provisions of this Agreement are not affected and remain valid and enforceable. If any portion of this Agreement is determined invalid or unenforceable, the parties will negotiate in good faith changes to the Agreement as will best preserve for the parties the benefits and obligations of such offending portion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.5 *No Implied Waivers; Rights Cumulative*. No failure or delay on the part of the parties to exercise any right, power, remedy or privilege under this Agreement, or provided by statute, at law or in equity, including the right or power to terminate this Agreement, impairs, prejudices or waives any right, power, remedy or privilege or be construed as a waiver or as an acquiescence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.6 *Further Assurances*. Each of the parties will do and perform or cause to be done and performed such further acts as may be necessary or desirable from time to time in order to give full effect to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.7 *Governing Law*. This Agreement is governed by and is to be interpreted and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable in the Province of Ontario.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.8 *Entire Agreement.* This Agreement constitutes the entire agreement between the parties and supersedes all previous negotiations, communications, and other agreements, whether written or verbal, between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.9 *Successors and Assigns*. This Agreement enures to the benefit of and is binding on the parties and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.10 *Language of Agreement.* This Agreement has been drafted
in the English language at the express wish of the parties. Le présent document a été rédigé dans
la langue anglaise à la volonté expresse des parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.11 *Acceptance.* If this Agreement is signed by one party
and is not executed by the other party within ten business days of delivery to the other party for signature, the first party may, by
notice to the other party before receiving the agreement signed by that other party, retract its signature.

*[Remainder of this page left intentionally blank.]*

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 22 of 38

---

| | |
|:---|:---|
| **THIS AGREEMENT** is duly executed by the parties. |  |
| **CANADA FOUNDATION FOR SUSTAINABLE**<br> **DEVELOPMENT TECHNOLOGY** |  |
| /s/ Christine Charbonneau |  |
| Christine Charbonneau |  |
| Vice President, Corporate Services |  |
| /s/ Leah Lawrence | Date signed by SDTC: |
| Leah Lawrence | March 26, 2021 \| 12:59:38 EDT |
| President and CEO |  |
| **ADVEN INDUSTRIES INC.** |  |
|  | Date signed by ADVEN INDUSTRIES INC.:  |
| /s/ Yanguang Yuan | March 26, 2021 \| 12:09:07 EDT |
| Yanguang Yuan |  |
| Chairman and CEO |  |

---

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 23 of 38

**Schedule A**

**Technology and IP Summary**

**Overview:**

Activated carbon is a strategic material used to remove pollutants from gases and contaminants from wastewater. It is used in the production of pharmaceuticals and industrial chemicals. It is an essential component in many catalysts and is used in gas and energy storage systems. The standard industrial process that makes activated carbon takes a carbon-containing feedstock, roasts it to drive-off volatiles and attacks it with oxidizers, strong acids or bases to open up pores. The entire process is energy-intensive and produces large quantities of greenhouse gases.

AdvEn has developed a lower-temperature process that takes byproducts from the petrochemical industry (asphaltenes and refinery residues) to make high-purity, high-capacity activated carbon. They use a synergetic combination of non-toxic chemicals to create pores in the carbon particles. These pores can be created with customer specified dimensions and surface properties.

Their approach reduces energy consumption by 80% and enables them to produce a premium product with 50% more surface area per gram than that of their commercial competitors.

Since 2016 AdvEn has been operating a 10 t/y capacity pilot line to optimize the process for different applications, and to produce samples for customer evaluation.

**Technology Summary:**

Activated carbon (AC) is valued for its capacity to capture and retain targeted ions or molecules in its pores. The starting point for producing activated carbon is a carbon-rich feedstock such as coal, wood, peat, or agricultural wastes. These are roasted for many hours at 600 to 700°C to drive off moisture or other volatile components and reduce most of the hydrocarbons to nearly pure carbon (a process known as carbonization). Activation, which follows, is the process that creates or enlarges the pores in the carbon powder. It typically takes place in a steam furnace at temperatures of 900 to 1000°C for up to 10 hours. Its effects may be enhanced by chemical additives such as strong acids or strong bases (a process known as chemical activation).

The primary figure of merit is the specific surface area which is a measurement of the storage capacity of the pores. Steam activation rarely produces activated carbon with a specific surface area greater than 1200 m<sup>2</sup>/g, whereas activated carbon produced using chemical activation typically exhibits a specific surface area of 1500 to 2100 m<sup>2</sup>/g. Today's preferred method for making the high specific surface area activated carbon is chemical activation using coconut shells as a feedstock.

AdvEn starts with asphaltenes or other refinery by-products. These feedstocks are more than 80% carbon. In contrast, the coconut shells used in the incumbent approach contains less than 50% carbon and includes significant amounts of impurities that must be driven off during the carbonization step or removed post-production. AdvEn mixes the refinery-based feedstock with proprietary additives that control pore size and roast the mixture at <500°C for approximately one hour. This is followed by activation at ~800°C for approximately one hour. Activated carbon with a specific surface area above 3200 m<sup>2</sup>/g can be produced reproducibly. Unlike biomass-based methods, AdvEn's process is not hampered by feedstock variability and it produces a homogeneous product.

The low-cost feedstock, the lower processing temperatures (and reduced energy consumption) and the elimination of corrosive chemicals lead to an overall lower cost process.

Activated carbon is produced in four basic steps: feedstock preparation, carbonization, activation, product finishing.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 24 of 38

**Figure 1. Basic Process Flow**

![](cm281_ex10-6img02.jpg)

· <u>Feedstock Preparation</u>: The producers of activated carbon
today use coal or various forms of biomass as a feedstock. Biomass feedstocks are typically agricultural wastes. Biomass must first be
dried and then ground. Coal must be pulverized. AdvEn's feedstock is typically a liquid byproduct of petroleum refining and can
be introduced into the process "as is". AdvEn adds its proprietary additives at this stage. The additives act as catalysts
and can be recovered in a later step.

· <u>Carbonization</u>:
This step breaks down the organic compounds in the feedstock into volatile hydrocarbons, water and carbon monoxide, which are driven
off, and leaves behind solid carbon. For the incumbent producers, this takes one to two hours at temperatures typically between 600 and
700°C in an inert atmosphere. AdvEn's catalysts allow carbonization to reach completion in about an hour at <u><</u> 500°C.

· <u>Activation</u>:
The particles of carbon coming out of carbonization are somewhat porous depending on the microstructure of the feedstock. The pores tend
to be clogged with the tars that are not sufficiently volatile to be driven off at the carbonization temperatures. Activation cleans
out the tars by exposing the particles to mildly oxidizing conditions, typically an hour in a mixture of air and steam at temperatures
from 900 to 1000°C. This step also converts some of the carbon in the particles into carbon dioxide and in doing so expands the network
of pores. Chemical activation
 is a variant on the physical activation process by adding a strong base such as KOH, NaOH
 or K<sub>2</sub>CO<sub>3</sub>, or a strong acid such as ZnCl<sub>2</sub>, H<sub>2</sub>SO<sub>4
 </sub>or H<sub>3</sub>PO<sub>4</sub>. These enhance pore growth and reduce the temperature
 required for activation to 900°C. Chemical activation can be slower than steam activation
 and can take several hours. AdvEn takes
 the chemical approach one step further. They combine two activation catalysts added during
 carbonization that work synergistically. One additive promotes the formation of pores during
 carbonation, while the other promotes pore expansion and ramification. In this way, the specific
 surface area in AdvEn's activated carbon is increased beyond what is produced by physical
 activation alone. Activation in AdvEn's process flow can take place in under an hour
 at a lower temperature (800°C) and no steam is required. Energy costs and greenhouse
 gas emissions are lower. AdvEn has explored different combinations of additives. Two preferred
 additives are KHCO<sub>3</sub> and Na<sub>3</sub>PO<sub>4</sub>. Neither is corrosive, which
 eliminates the main barrier to the use of chemical activation by the industry.

· <u>Product Finishing</u>: After activation, the product is washed,
dried and ground. In the case of conventional activated carbon, additional acid washes may be required to lower the ash content to meet
customer specifications. AdvEn does not need this step because their feedstock has a low ash content to begin with. For AdvEn, the wash
step is an opportunity to recover nearly all the catalysts to lower the cost of production and GHG intensity. They have filed a patent
on a process for doing this.

**Intellectual Property (IP) Summary:**

AdvEn created and owns the core IP, the synergetic use of two non-corrosive additives instead of harsh acids or bases to increase the effectiveness of chemical activation. A patent application was filed in 2017 (see **Table 1**). The additives are not detectable in the final product; this makes reverse engineering unlikely to discern the innovation. AdvEn has long term plans to commercialize other forms of nanocarbon made from bitumen and to sell products that incorporate its nanocarbon in higher-value components such as electrodes. They have started building an IP portfolio to support those goals.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 25 of 38

**Table 1. Patent Listing**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **IP**<br> **Asset**<br> **Type** | **Region(s)** | **Identifying**<br> **Number** | **Status** | **Filing Date** | **Ownership** | **Description** |
| Patent | CA, US, KR, EP, MX, JP, CN | <u>WO201720 5960A1</u> | Pending | 2017-07-12 | Owned | Activated carbons with high surface area and methods for making the same |
| Patent | CA, US | <u>WO201800 6155A1</u> | Pending | 2017-06-30 | Owned | Methods for enhancing the efficiency of bitumen extraction from oilsands using activated carbon-containing additives |
| Patent | CA, US, JP, CN, EP, KR | <u>WO201807 6098A1</u> | Pending | 2017-10-11 | Owned | Conductive flake strengthened, polymerstabilized electrode composition and method of preparing |

---

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 26 of 38

**Schedule B**

**Project Summary, Objectives and Work Plan**

**Summary of Project Scope:**

The Project will build and operate a commercial demonstration plant with an output capacity of 300 t/y. The plant will first produce batch samples committed to three engaged end-users to validate product consistency, i.e., three randomly selected 20 kg samples will be extracted from the continuous production process. Following customer acceptance of the qualification samples, the plant will begin commercial supply.

**Summary of Project Objectives:**

- Finalize the detailed design and equipment specs required for the 300 t/y demo plant.

- Procure, install and commission all the equipment required for the plant.

- Produce ASAC™ (AdvEn Super Activated Carbon) with the quality and in the quantity that satisfies the conditional off-take agreements.

- Identify debottlenecking and optimization opportunities. Update the production cost basis with actuals.

**Key Success Metrics**

---

| | | | |
|:---|:---|:---|:---|
| **Success Metric** | **Commercialization Target** | **Project Target** | **Achieved to date** |
| Batch size | 20 kg | 20 kg | 3 kg |
| Product consistency: |  |  |  |
| specific density | within ± 5% of specification | ± 5% reproducibility |  |
| specific surface area | within ± 5% of specification | ± 5% reproducibility |  |
| ash content | <0.1% | <0.2% | <0.2% |
| iron content | <50 ppm | <50 ppm |  |
| sulfur content | <250 ppm | <250 ppm |  |

---

**Summary of Identified Project Risks:**

---

| | | |
|:---|:---|:---|
| **Risk**<br> **Category** | **Identified Risk** | **Mitigation** |
| Technology | Production uptime reduced dueto unforeseen operation issues | Identification of bottlenecks. QC of major equipment and storage of critical parts. Implementation of LEAN manufacturing techniques. |
| Technology | Product quality is not consistent | Quality-control of feedstock intake.<br> Real-time quality control measurement in all major production stages.<br> Process optimization and control.<br> Comprehensive operator training and competency assurance programs. |
| Project | Major equipment is not compatible or are otherwise deficient | Rigorous design engineering review to identify compatibility issues early and negotiate solutions Rigorous procurement practices (negotiating and demand for quality, cost efficiency and firm delivery timelines) |

---

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 27 of 38

---

| | | |
|:---|:---|:---|
| **Risk**<br> **Category** | **Identified Risk** | **Mitigation** |
| Market Penetration | Market reception of products is limited | Innovative marketing strategies – direct-sale, whole-sale, commodity trading, alliances/JV's etc. Work closely with market users to meet their technical and cost performance needs. |
| Market Penetration | Cost of production higher than expected, compromising economic viability | Continue R&D efforts to optimize existing and develop novel approaches to further drive down cost and improve performance. |

---

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 28 of 38

**Project Work Plan**

---

| | |
|:---|:---|
| **Milestone 1** |  |
| **Milestone Objective:** | Equipment Procurement, Facility Construction & Commissioning |
| **Forecast Milestone Timeframe:** | February 1, 2021 – June 30, 2021 |
| **Milestone Reports Due Date:** | July 31, 2021 |

---

---

| | | |
|:---|:---|:---|
|  | **Target Achievements** | **Measures of Success** |
| A | Review of vendor options including <br>viable local options<br>Purchase terms are finalized | Purchase orders for major pieces of equipment are issued |
| B | Factory acceptance testing (FAT) of major equipment is conducted and targeted delivery timelines are met | All major equipment is received as per agreed timelines. FAT testing reports |
| C | Renovation of the lease site – (office and lab space) | Renovation completion report, including SOW document |
| D | Full commissioning of the facility to ensure the entire production line can start up and operate smoothly | Commissioning report |
| E | Full staffing level by end of milestone period | Hiring progress and staff report. |

---

---

| | |
|:---|:---|
| **Milestone 2** |  |
| **Milestone Objective:** | Start of Production Operations & ASAC Validation |
| **Forecast Milestone Timeframe:** | July 1, 2021 to December 31, 2021 |
| **Milestone Reports Due Date:** | January 31, 2022 |

---

---

| | | |
|:---|:---|:---|
|  | **Target Achievements** | **Measures of Success** |
| A | 20 kg samples produced from the production plant for internal test and customer evaluation. | Produced ASAC meets committed quality, and quantity. |
| B | Batch samples from the production plant sent to LOI end users for final validation. | Final purchase orders signed by the end users |

---

---

| | |
|:---|:---|
| **Milestone 3** |  |
| **Milestone Objective:** | Production Operations & Optimization |
| **Forecast Milestone Timeframe:** | January 1, 2022 to June 30, 2022 |
| **Milestone Reports Due Date:** | July 31, 2022 |

---

---

| | | |
|:---|:---|:---|
|  | **Target Achievements** | **Measures of Success** |
| A | Streamline the production process to meet the quality and quantity of signed POs | Production report indicating produced volumes and QA/QC testing. |
| B | Expand the ASAC types to be produced from the plant, pursue additional end user engagements and eventually gain their signed PO's | New customer POs (as achieved) |
| C | Review and evaluate actual plant operating costs and identify opportunities to improve safety, quality, efficiency, reliability and sustainability. | Plant operability report and recommended improvements |

---

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 29 of 38

**SDTC Project Reporting Schedule:**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Documentation to be submitted to** <br> **SDTC**  | **M1** | **M2** | **M3** | &nbsp;&nbsp;**Last** <br> **Milestone**  |
| Milestone Results Report (with accompanying relevant appendices) <sup>(1)</sup> | Yes | Yes | Yes | Yes |
| Corporate Snapshot (including the Milestone Expense Summary) | Yes | Yes | Yes | Yes |
| Detailed Expense Report | If requested | If requested | If requested | Yes |
| Environmental Benefits Report <sup>(2)</sup> | Yes – Initial Report | Update if applicable | Update if applicable | Yes – Final Report |
| Third Party Financial Audit | If requested | If requested | If requested | If requested |
| Marketing and Commercialization Report | No | If requested | If requested | Yes |
| Post Project Reporting Questionnaire | N/A | N/A | N/A | Annually for five years post-Project completion |

---

<sup>(1)</sup> The Milestone Results reports are to be accompanied by any relevant appendices or separate documentation that clearly summarizes and explains the results achieved in relation to the targeted measures of success.

 

<sup>(2)</sup> An initial third-party Environmental Benefits Report is due as part of the Milestone 1 reporting package. After Milestone 1, if there is any change to the technology that would have an impact on the estimated environmental benefits associated with the technology, the initial Environmental Benefits Report must be updated and submitted to SDTC after the relevant Milestone. A final Environmental Benefits Report is required.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 30 of 38

**Schedule C**

**Project Budget, Funding Sources and Payment Schedule**

C.1 Project Budget

![](cm281_ex10-6img03.jpg)

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 31 of 38

C.2 Project Funding Sources

![](cm281_ex10-6img04.jpg)

Funding Source Summary

![](cm281_ex10-6img05.jpg)

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 32 of 38

**C.3 Payment Schedule**

**SDTC PAYMENT #1 - (Initial Payment – Advance Milestone #1)**

Amount: $1,255,845.88

Payment process trigger:

● Execution of the Project Funding Agreement

Required Reports due: None

**SDTC PAYMENT #2 – (Advance Milestone #2)**

Amount: $1,153,929.75

Payment process trigger:

● Successful completion of all Milestone 1 activities and deliverables.

● Receipt and acceptance by SDTC of the Milestone 1 Reports as established in Schedule B, attached hereto.

● Evidence satisfactory to SDTC that sufficient financing is in place to complete the rest of the Project.

Required Reports due: Refer to Schedule B, attached hereto

**SDTC PAYMENT #3 – (Advance Milestone #3)**

Amount: $1,055,224.37

Payment process trigger:

● Successful completion of all Milestone 2 activities and deliverables.

● Receipt and acceptance by SDTC of the Milestone 2 Reports as established in Schedule B, attached hereto.

● Evidence satisfactory to SDTC that sufficient financing is in place to complete the rest of the Project.

Required Reports due: Refer to Schedule B, attached hereto

**SDTC PAYMENT # 4 – (Final Payment – Release of Holdback)**

Amount: $385,000.00 (Holdback)

Payment process trigger:

● Successful completion of the Project and receipt and acceptance by SDTC of the last Milestone Reports as established in Schedule B, attached hereto.

Required Reports due: Refer to Schedule B, attached hereto

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 33 of 38

**Schedule D**

**Consortium Members**

**Recipient:**

**AdvEn Industries Inc.** was established 2011 and is headquartered in Edmonton, AB, with eight employees plus two contractors. AdvEn are pre-revenue and are currently producing commercial samples.

---

| | |
|:---|:---|
| Corporate Address: | 9407-3 – 20<sup>th</sup> Avenue NW, Edmonton, AB T6N 1E5 |
| Primary Contact: | Yanguang Yuan |
| Title: | Chairman and CEO |
| Telephone: | 403 681-7772 |
| E-mail: | Yanguang.Yuan@Adven-Industries.com |
| Secondary Contact: | Brad Kearl |
| Title: | Business Development Manager |
| Telephone: | 403 614-3002 |
| E-mail: | Brad.Kearl@AdvEn-Industries.com |
| Financial Contact: | Shelly Xiao |
| Title: | COO |
| Telephone: | 403 909-0656 |
| E-mail: | shelly.xiao@adven-industries.com |

---

Private or Public Company: Private

**Consortium Member 1**

**Flow Filters Corp.** produces high-quality air filters for the greenhouse industry. Lead adopter. They are headquartered in Bolton, ON with two employees and will contribute $200K in-kind to the Project for in-product testing.

Corporate Address: 12 McCague Crt, Tottenham, ON L0G 1W0

Primary Contact: Tristan Tirone

Title: Director

Telephone: 647 229-5350 <br> E-mail: tristan@flowfilters.com

Private or Public Company: Private

**Consortium Member 2**

**The University of British Columbia – School of Engineering** develops next-generation energy storage devices leveraging nanomaterials. They will contribute $83K in-kind for product assessment and specifications development.

Corporate Address: 3223 Engineering Management Education, 1137 Alumni Ave, Kelowna, BC V1V 1V7

---

| | |
|:---|:---|
| Primary Contact: | Dr. Jian Liu |
| Title: | Assistant Professor: School of Engineering - UBC Okanagan |
| Telephone: | 250 807-8708 |
| E-mail: | jian.liu@ubc.ca |

---

Private or Public Company: Academia

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 34 of 38

**Consortium Member 3**

Kîwetinohk Resources Corporation is an oil and gas producer interested in capturing associated gas (methane and carbon dioxide) from active oil wells. These gases could be sold, used for enhanced oil recovery or sequestered. Incorporated in 2018 with 38 employees. They will provide product assessment to the Project.

Corporate Address: Suite 1900, 250 2nd St SW Calgary, AB T2P 0C1

---

| | |
|:---|:---|
| Primary Contact: | Kurt Molnar |
| Title: | Senior Vice President, Business Development |
| Telephone: | 587 392-4424 |
| E-mail: | kmolnar@kiwetinohk.com |

---

Private or Public Company: Private

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 35 of 38

**Schedule E**

**SDTC - Project Reporting Requirements**

SDTC uses a risk-based reporting methodology, and throughout the course of the Project, the Recipient will be required to submit various reports to SDTC. These reports are to be submitted at the end of each Milestone, or as requested by your SDTC Investment Lead. Templates for these reports will be provided to the Recipient by SDTC. These reports will generally consist of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **MILESTONE RESULTS REPORTS** 

These reports are submitted at the end of each Milestone and they serve to provide SDTC with a summary of the Milestone and Project achievements compared to the contracted goals and objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **CORPORATE SNAPSHOT** 

This spreadsheet is submitted at the end of each Milestone, or upon request by SDTC. This snapshot consists of:

● An update of the Recipient's latest financial statements and cash flow forecast

● A summary of the latest milestone expenses and the associated funding sources

● An update on the latest Project-related employment data and intellectual property filings

● An update on the latest sales forecast related to the Project technology

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **DETAILED EXPENSE REPORT** 

This spreadsheet is used to track all Project Expenses. This report is to be submitted at the end of the Project, or as requested during the Project Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **ENVIRONMENTAL BENEFITS REPORTS** 

Environmental Benefits Reports serve to validate the forecasted environmental impacts attributable to the Project technology.

a) <u>The Environmental Benefits – Initial Report</u>. A third party prepares this report, and it includes all baseline measures, along with anticipated Project inputs and outputs.

b) <u>The Environmental Benefits – Final Report.</u> If there have been changes to the technology during the Project period, this updated report summarizes the revised anticipated benefits associated with the technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **MARKETING AND COMMERCIALIZATION REPORT** 

This report provides a summary of the Recipient's updated company Business Plan. This will include a summary of the latest tactical marketing plan that describes the planned post-Project activities for the commercialization and marketing of the technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **FINANCIAL AUDIT** 

During the course of the Project, SDTC has the right to request that a third-party auditor undertake a financial audit of the claimed Eligible Project costs.

**POST-PROJECT REPORTING REQUIREMENTS**

All Recipients are required to report on the status of the market roll out of the Project technology for a period of five (5) years beyond the Project completion date. This annual reporting will be done via Excel spreadsheets that will be sent to the Recipient by SDTC. Failure to comply with the post-Project reporting requirements is considered an Event of Default.

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 36 of 38

**Schedule F**

**Environmental and Economic Benefits Forecast**

**Pathway to Environmental Benefits:**

Approximately half of the activated carbon is made from coal via an energy-intensive process involving separate carbonization and steam activation steps. The rest is made by substituting various forms of biomass for the coal, e.g., wood chips, peat, olive pits or coconut shells. The preferred method for producing the specialty grade of activated carbon used in the super-capacitor and ultra-filtration applications uses coconut shells as a feedstock and replaces steam activation with chemical activation with KOH as the activating agent. ZnCl2 or H3PO4 are alternative agents. KOH activation of coconut shells is considered the baseline process.

AdvEn's technology used asphaltenes or refinery wastes ("L-C refiner bottoms") as a feedstock and a combination of two catalysts as activation agents. The synergetic effect of their proprietary mixture of catalysts reduces energy consumption compared to the baseline process by 80%.

**Pathway to Economic Benefits:**

AdvEn plans to sell its activated carbon directly to the specialty markets (water treatment, food and beverage, mining, gas and air filtering, chemical production, pharmaceuticals, automotive, catalyst production and supercapacitors). Three lead adopters have been identified so far as entry points to these segments: Flow Filters, Tianjin Lishen (Lishen), Changchun Meihe Science and Technology Development Co. (Meihe). Each has provided an off-take agreement dependent on AdvEn establishing the capability to produce a minimum batch size and demonstrate batch-to-batch reproducibility. This Project would allow AdvEn to do so.

**Key assumptions for benefits forecasting:**

---

| | | |
|:---|:---|:---|
|  | **Parameter** | **Value** |
| 1 | Sales unit description | KgAC |
| 2 | Primary Environmental Benefit Calculation Factor (Canada) | 0.00001617 kt CO<sub>2</sub>e |
| 3 | Primary Environmental Benefit Calculation Factor (ROW) | 0.00001617 kt CO<sub>2</sub>e |

---

**Projected Benefits Forecast**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| Year | Region | Price per <br> unit | Price per <br> unit | Projected <br>sales <br>volume <br>(units/year) | Projected <br>Revenue <br>(Sales volume X sale price per unit) | Projected <br>Revenue <br>(Sales volume X sale price per unit) | Number of Active <br> Units in ref. year | Projected <br>annual <br>primary <br>environmental <br>benefits <br>(active units X<br> calc. benefit<br> factor) |
| 2026 | Canada<br> ROW | $ $| 22.87<br> 22.87 | 1159800<br> 2650200 | $ $| 26524626<br> 101016790 | 1159800<br> 2650200 | 18.75 kt CO<sub>2</sub>e<br> 42.84 kt CO<sub>2</sub>e |
| 2031 | Canada<br> ROW | $ $| 22.87<br> 22.87 | 2320200<br> 5300400 | $ $| 53062974<br> 121220148 | 2320200<br> 5300400 | 37.51 kt CO<sub>2</sub>e<br> 85.68 kt CO<sub>2</sub>e |

---

SDTC-2021-A-3754 SDTC CONFIDENTIAL Page 37 of 38

![](cm281_ex10-6img06.jpg)

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| | | |
|:---|:---|:---|
| **In Person Signer Events** | **Signature** | **Timestamp** |
| **Editor Delivery Events** | **Status** | **Timestamp** |
| **Agent Delivery Events** | **Status** | **Timestamp** |
| **Intermediary Delivery Events** | **Status** | **Timestamp** |
| **Certified Delivery Events** | **Status** | **Timestamp** |
| **Carbon Copy Events** | **Status** | **Timestamp** |
| **Witness Events** | **Signature** | **Timestamp** |
| **Notary Events** | **Signature** | **Timestamp** |
| **Envelope Summary Events** | **Status** | **Timestamps** |
| Envelope Sent | Hashed/Encrypted | March 26, 2021 \| 11:43 |
| Certified Delivered | Security Checked | March 26, 2021 \| 12:59 |
| Signing Complete | Security Checked | March 26, 2021 \| 12:59 |
| Completed | Security Checked | March 26, 2021 \| 12:59 |
| **Payment Events** | **Status** | **Timestamps** |
| **Electronic Record and Signature Disclosure** | **Electronic Record and Signature Disclosure** | **Electronic Record and Signature Disclosure** |

---

**ELECTRONIC RECORD AND SIGNATURE DISCLOSURE**

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## Exhibit 10.7

**Exhibit 10.7**

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020)<br> Agreement Number: 202100733 |

---

**THIS INVESTMENT AGREEMENT DATED THE 1ST DAY OF APRIL 2020, BETWEEN:**

**ALBERTA INNOVATES**

A Provincial research and innovation corporation

established pursuant to Section 6.1(3) of the *Alberta*

*Research and Innovation Act*

**- and -**

**ADVEN INDUSTRIES INC.**

A Corporation incorporated under the laws of

the Province of Alberta

(the "**Applicant**")

**BACKGROUND**

1. The Applicant has submitted an application to develop and commercialize a novel technology or business solution to address a gap or market need in Alberta;

2. Such novel solution forms the basis of the Project titled "Construction of 300T/year Commercial Demonstration ASAC Plant"

3. The Applicant intends to work on the Project but requires funding from Alberta Innovates to carry out the Project; and

4. Alberta Innovates has reviewed the Application and, on such basis, has approved funding for the Project.

**NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:**

**ARTICLE 1 DEFINITIONS AND INTERPRETATION**

1.1 <u>Terms and Conditions</u>

The Investment is governed by the Terms and Conditions which form a part of this Investment Agreement. A copy of the Terms and Conditions are attached as **Schedule A**.

1.2 <u>Definitions</u>

For ease of reference, a list of defined terms is included in **Schedule B**.

**ARTICLE 2 PROJECT START AND COMPLETION DATES**

2.1 <u>Project</u>

The Applicant agrees to undertake the Project as described in **Schedule C - Project Description**, including achieving the Milestones as required by Section 4.2 below.

Agreement Number: 202100733 Page 1 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

2.2 <u>Project Start Date</u>

It is agreed between the Parties that the Project Start Date is **APRIL 1ST, 2020.**

2.3 <u>Project Completion Date</u>

It is agreed between the Parties that the Project Completion Date is **JULY 1ST, 2022.** If the Project is not completed by such date then, subject to an amendment agreed to between the Parties, Alberta Innovates may elect to terminate this Investment Agreement. In such event, Alberta Innovates will notify the Applicant of its decision to terminate as soon as reasonably practical and shall advise the Applicant of the effective date of termination. Alberta Innovates will have no liability or obligation to reimburse the Applicant for any Project Costs incurred after the effective date of termination and may require the Applicant to return any portions of the Investment which were spent on Ineligible Expenses. Additionally, any portion of the Investment not used and accounted for in accordance with this Agreement as of the Project Completion Date or earlier termination is repayable by the Applicant to Alberta Innovates at Alberta Innovates' request.

2.4 <u>Effective Date of this Investment Agreement</u>

The effective date of this Investment Agreement shall be the Project Start Date.

2.5 <u>Term of this Investment Agreement</u>

The Term of this Investment Agreement shall start on the Project Start Date and end on the later of: (i) the date Alberta Innovates pays the final portion of the Investment; (ii) the date the Project, as described in **Schedule C**, is completed; or (iii) the date Alberta Innovates communicates its receipt and acceptance of the Final Report to the Applicant.

**ARTICLE 3 INVESTMENT BY ALBERTA INNOVATES, CONTRIBUTIONS OF THE APPLICANT**

3.1 <u>Investment by Alberta Innovates</u>

Subject to the Terms and Conditions of this Investment Agreement, Alberta Innovates agrees to provide the Applicant with a contribution to the Project (the "Investment") not exceeding $3,600,000 Canadian dollars in accordance with the payment schedule as set out in **Schedule D**. Notwithstanding the generality of the foregoing, Alberta Innovates reserves the right to withhold payment of any portion of the Investment if the Applicant(s) incurs a debt to Alberta Innovates, or its affiliates Innotech Alberta Inc. or C-FER Technologies (1999) Inc.

If the total Project Costs decrease, Alberta Innovates may elect to adjust its Investment pro-rata in accordance with such decrease. Alberta Innovates shall pay the Investment to the Applicant in the amounts and at the times specified in **Schedule D**.

Agreement Number: 202100733 Page 2 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

3.2 <u>Milestone Payments</u>

The Investment will be paid over time in accordance with the critical Milestones as set out in **Schedule D**. A

Project may have one or more Milestones, to be disbursed throughout the Term of this Investment Agreement, unless an extension is agreed to by the Parties. Upon completion of a Milestone, the Applicant is required to submit a Progress Report or Final Report (as the case may be) to Alberta Innovates. If a payment of the Investment is indicated in **Schedule D** at the Project Start Date, the Applicant shall detail all expenditures related to such funds in the Progress Report due on the completion of Milestone 1.

3.3 <u>Milestones Generally</u>

Milestones may overlap, but Alberta Innovates will not review more than one Progress Report or issue more than one payment per calendar month.

3.4 <u>Interest and Investment</u>

The Applicant shall invest any portion of the Investment paid to the Applicant but not immediately required for the Project, in such a manner that the interest rate or other rate of return will be readily ascertainable.

3.5 <u>In-Kind Contributions</u>

For clarity, In-Kind contributions will only be recognized as eligible when the costs incurred by the Applicant are incidental to its ordinary course of business, directly attributable to the Project and easily auditable.

3.6 <u>Contributions by the Applicant(s)</u>

The Applicant must apply, pay and deliver their Contribution as set out in **Schedule D**.

3.7 <u>Eligible and Ineligible Expenses</u>

The Investment shall only be applied towards Eligible Expenses pursuant to the terms of this Investment Agreement. Guidance concerning what constitutes an "Eligible Expense" versus an "Ineligible Expense" is provided under the definitions of those terms in **Schedule B**. It is a condition of the Investment that Alberta Innovates has the right to require the Applicant(s) to repay to Alberta Innovates any portions of the Investment which were used to cover Ineligible Expenses, and such amount shall constitute a debt immediately owing and repayable on demand by the Applicant(s) to Alberta Innovates.

**ARTICLE 4 MILESTONE, REPORTING AND PAYMENT TIMELINES**

4.1 <u>Terms and Conditions</u>

All Milestone Payments are subject to the Terms and Conditions. Alberta Innovates will pay and deliver the Investment to the Applicant(s) at the times identified in **Schedule D** upon completion of the particular Milestone, and Alberta Innovates' written approval of the completed Progress Report or Final Report, as the case may be. Alberta Innovates may refuse to approve a Progress Report or Final Report, or request changes to such report, as determined in its sole discretion upon written notice to the Applicant advising of the reason for refusing approval and/or requesting a change.

4.2 <u>Milestone, Reporting, and Payment Timelines</u>

The Milestone, Reporting, and Payment Timelines are set out in **Schedule D**.

Agreement Number: 202100733 Page 3 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

4.3 <u>Reporting Obligations During the Project</u>

Alberta Innovates is a Provincial (Crown) Corporation. It is owned by the Government of Alberta. One of Alberta Innovates primary mandates is to support the development and commercialization of new and innovative technologies for the benefit of Alberta and Albertans. In doing so, Alberta Innovates invests public dollars to support the projects it funds. For that reason, Alberta Innovates is required to report to the Government of Alberta on its use of grant funding, to ensure Alberta Innovates mission and mandate are being achieved.

Regular Applicant reporting is a requirement, both during the Term and afterward. Upon the completion of a Milestone (as set out in **Schedule D**) the Applicant is required to submit a Progress Report in the form provided by Alberta Innovates. These Progress Reports are required to be submitted within thirty (30) days of the completion of the given Milestone. If the Applicant does not provide a Progress Report as required, this will be considered a default and Alberta Innovates may withhold payment of any portion of the Investment associated with that Milestone.

For the final Milestone of the Project, the Applicant will provide Alberta Innovates with a Final Report within thirty (30) days of the Project Completion Date. All Report templates (both for Milestone Progress Reports and Final Reports) will be provided by Alberta Innovates. These templates will clearly differentiate between sections that are considered confidential (and can only be disclosed to the Government of Alberta but to no other party), versus portions that are considered non-confidential and can be disclosed in the public domain. For clarity, all Reports (both Milestone Progress Reports and the Final Report) may be disclosed to the Government of Alberta in their entirety, on a strictly confidential basis.

The Final Report is intended to provide a high level summary of the Project. It allows Alberta Innovates to compare the actual results achieved to key performance indicators set at the outset of the Project, and to gauge whether the Project was successful. The Final Report may also be used to report to the Government of Alberta. Alberta Innovates will not publish the non-confidential portion of the Final Report in the public domain for six (6) months following the Project Completion Date. If this period is not sufficient for the Applicant to protect its Intellectual Property, or to publish its results in an academic journal or trade industry publication, the Applicant may request a further six (6) month extension. Alberta Innovates will not unreasonably withhold or delay its consent to such a request.

4.4 <u>Annual Surveys</u>

The Applicant further agrees to complete an annual survey in a format to be provided by Alberta Innovates, both during the Term of the Project and for five (5) years thereafter. The information contained within these surveys may be disclosed to third parties or published in the public domain without further notice to the Applicant(s), provided that prior to such disclosure Alberta Innovates will aggregate such information by removing any identifying particulars of the Applicant. All such information is deemed to be non-confidential for all of Alberta Innovates' purposes and the Applicant agrees to provide such information when requested by Alberta Innovates for five (5) years after the Project Completion Date. Failure to complete the annual surveys may result in the Applicant being ineligible for future funding from Alberta Innovates.

Agreement Number: 202100733 Page 4 of 18 TIER 2020 - October 2020

---

| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

4.5 <u>Advisory Committee</u>

To better monitor the Project between Milestone and facilitate providing timely feedback, the Applicant may establish an advisory committee for the Project. The advisory committee will consist of one or more representatives appointed by each of the Parties and shall meet as often as Alberta Innovates deems appropriate but not more than once per quarter. The advisory committee is intended as an information forum for discussion, dialogue, and sharing of information between Milestones, and will not direct or steer the Project. The Applicant is solely responsible for managing the technical, financial and other challenges associated with the Project.

**ARTICLE 5 CHANGES TO THE PROJECT**

5.1 <u>Changes and Review Procedure</u>

Alberta Innovates expects the Applicant to set reasonable Milestone start and completion dates, anticipating times during the Term of the Project when setbacks or unavoidable delays may occur. Should an unforeseen circumstance arise whereby it is not possible to meet the deliverables set out in a particular Milestone, the Applicant may request an amendment to the Investment Agreement by contacting Alberta Innovates' representative set out in ARTICLE 6 below no later than two (2) weeks prior to the next Milestone completion date. Changes may include, but are not limited to, the following: (i) an increase or decrease in the Investment associated with a particular Milestone, or the Project as a whole; (ii) a proposed change in the scope of the Project; (iii) a delay in the completion of a Milestone, irrespective of any impact on the Project Completion Date; (iv) a Change in Control of the Applicant(s); or (v) any other changes as determined by Alberta Innovates. Upon review of the request, Alberta Innovates may, at its sole and unfettered discretion, approve, decline or request further information concerning the change. Should a change be approved by Alberta Innovates, the remainder of the Investment Agreement shall remain in full force and effect unamended. Depending on the nature of the change, Alberta Innovates may require the Parties to execute an amendment to the Investment Agreement or by notice to all Parties that a new Milestone, Reporting & Payment **Schedule D** has been approved. If the requested change is declined, the Applicant may either elect to proceed with the Project as previously approved by Alberta Innovates or terminate the Investment Agreement, in which case no further payments from the Investment will be provided.

5.2 <u>Cumulative Changes in Excess of Twelve Months</u>

For clarity, any changes over the Term of the Project that result in more than a twelve (12) month extension from the original Project Completion Date will require approval by Alberta Innovates in writing. Should changes delay the Project Completion Date for more than twelve (12) months form the initial Project Completion Date not be approved in writing, all funding from Alberta Innovates shall cease on the day after the one year anniversary of the original Project Completion Date.

Agreement Number: 202100733 Page 5 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

**ARTICLE 6 NOTICES**

6.1 <u>Generally</u>

Any notice or other communication regarding the matters contemplated by this Investment Agreement shall be delivered to the individuals listed below and must be in writing and delivered by courier, registered mail or email, as follows:

**IF TO ALBERTA INNOVATES:**

**For Project Matters:**

Name: Paolo Bomben, Senior Manager, Clean Technology Development

Address: 250 Karl Clark Road, Edmonton, Alberta T6N 1E4

Phone: 587-779-2917

Email: Paolo.Bomben@albertainnovates.ca

**For Agreement Matters:**

Name: Isabel Salcedo, Program Associate

Address: 250 Karl Clark Road, Edmonton, Alberta T6N 1E4

Phone: 403-910-4998

Email: Isabel.Salcedo@albertainnovates.ca

**IF TO THE APPLICANT:**

Please complete the following:

**For Project Matters:**

---

| | |
|:---|:---|
| Name: | Yanguang Yuan |
| Address: | AdvEn Industries Inc., 9407-3 20th Ave NW, Edmonton, Alberta T6N 1E5 |
| Phone: | 1 403 681 7772 |
| Email: | yanguang.yuan@adven-industries.com |

---

**For Agreement Matters:**

---

| | |
|:---|:---|
| Name: | Phlip Chong |
| Address: | AdvEn Industries Inc., 9407-3 20th Ave NW, Edmonton, Alberta T6N 1E5 |
| Phone: | 1 416 818 8680 |
| Email: | philip.chong@adven-industries.com |

---

If the individual(s) named above are different than the Applicant Representative named in the Application, such person(s) must have the authority and permission to the Application and any attachments, the Investment Agreement, and all future correspondence, forms and other documentation. The person(s) listed above are deemed the Application Representative(s) on a go-forward basis.

A notice is deemed to be delivered and received on the date of delivery if delivered prior to 4:30 p.m. (MST time) on a Business Day and otherwise on the next Business Day.

Agreement Number: 202100733 Page 6 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

A Party may change its address for service from time to time by notice given to all other Parties in accordance with the foregoing provisions.

***[The remainder of this page has been intentionally left blank. Signature pages follow]***

 ****

Agreement Number: 202100733 Page 7 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

**ALBERTA INNOVATES**

---

| |
|:---|
| /s/ Maureen Lomas |
| Maureen Lomas |
| Vice President, Finance |
| /s/ Laura Kilcrease |
| Laura Kilcrease |
| CEO |

---

[THIS SPACE LEFT INTENTIONALLY BLANK]

Agreement Number: 202100733 Page 8 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

**<u>CONSENT AND ACKNOWLEDGEMENT TO BE BOUND TO THE INVESTMENT AGREEMENT BY THE APPLICANT:</u>**

The undersigned agrees to be bound by this Investment Agreement.

**ADVEN INDUSTRIES INC.**

/s/ Weixing Chen

Per: (printed name): <u>Weixing Chen</u>

Position: <u>Chief Technical Officer</u>

I have authority to bind the company.

[THIS SPACE LEFT INTENTIONALLY BLANK]

Agreement Number: 202100733 Page 9 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

**SCHEDULE A – TERMS AND CONDITIONS**

**THE FOLLOWING LEGAL TERMS AND CONDITIONS ARE INCORPORATED INTO AND FORM PART OF THE INVESTMENT AGREEMENT. PLEASE REVIEW THESE TERMS CAREFULLY.**

**1.** **Conditions of Payment** 

Alberta Innovates' obligation to pay the Investment, or any portion or instalment thereof, is conditional on:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the Applicant at all times being in compliance with the Investment Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the Project progressing as set out in ARTICLE 4 - MILESTONE, REPORTING AND PAYMENT TIMELINES above;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the Project being completed by the Project Completion Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the Contribution to carry out and complete the Project remaining in place and being applied in accordance
with ARTICLE 4 - MILESTONE, REPORTING AND PAYMENT TIMELINES; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. timely completion of all Reports required.

**2.** **Use of Sub-Contractors** 

It is understood that the Applicant may require the use of another entity as a Sub-Contractor in order to adequately complete the Project. Where such Sub-Contractors are utilized, a collaboration letter, contract or agreement between the Applicant and the Sub-Contractor(s) must be in place prior to the Applicant proceeding with the Milestone which requires assistance from the Sub-Contractor, and a copy of the same will be provided to Alberta Innovates upon request, and on a strictly confidential basis. The Applicant shall be solely responsible for all work, acts, defaults any liabilities of any Sub-Contractor(s) so engaged and agree to release Alberta Innovates from all liability in respect of same.

**3.** **Alberta Innovates' Right to Terminate Funding** 

Notwithstanding any other term of this Investment Agreement, Alberta Innovates may terminate its obligations under this Investment Agreement immediately or at any time during the Term in the event the Government of Alberta at any time suspends, revokes, reduces or terminates funding to Alberta Innovates. In such event this Investment Agreement shall terminate immediately subject to the obligation of the Applicant to provide a summary Report as set out below. Alberta Innovates will notify the Applicant of such suspension as soon as is reasonably practicable.

Notwithstanding any other terms of this Investment Agreement, Alberta Innovates may terminate this Investment Agreement at any time without cause on thirty (30) days' written notice to the Applicant, and Alberta Innovates' obligation to make any further payments of the Investment shall cease upon delivery of such notice.

Alberta Innovates additionally has the right to unilaterally terminate the Investment for any Project that incurs a Default or a Change of Control. However, Alberta Innovates will not terminate the Investment in the case of a Change of Control where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the Applicant continues to satisfy the minimum requirements to be eligible for the Program; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Alberta Innovates, the Applicant, and the new entity execute an assignment and novation agreement whereby
the original Applicant agrees to assign its rights to the new entity, and the new entity assumes all obligations under the Investment
Agreement and Alberta Innovates consents to such assignment and assumption. **]** 

In the event of early termination as aforesaid, the Applicant will not be obligated to deliver the Final Report, but will provide to Alberta Innovates a Progress Report summarizing the outcomes of the Project up to the effect date of such termination, such report to be delivered not later than ninety (90) days from the date of termination.

**4.** **Termination of the Project for Delay** 

If the Applicant suspends or delays the Project for any reason whatsoever for a period in excess of one (1) year, or for periods which in the aggregate exceed twelve (12) months during the term of the Project, then Alberta Innovates may terminate this Investment Agreement immediately upon notice to the Applicant, in which case Alberta Innovates will have no further payment obligation. If the Applicant terminates its part of the Project for any reason prior to the Project Completion Date, Alberta Innovates must be notified immediately. Nothing will excuse the Applicant from providing a Progress Report summarizing the outcomes of the Project up to such date of termination.

Upon receipt of notice of termination except for reason of Default, the Applicant shall be entitled to be reimbursed for actual costs legally incurred priorto the date of termination, including all direct costs incurred in winding down the Project, which such reasonable costs will include actual non-cancellable, legal commitments made by the Applicant, as confirmed and approved by Alberta Innovates. The Applicant will use reasonable effort to ensure that any financial commitments made by the Applicant during this Investment Agreement which can be terminated immediately upon receipt of notice of termination to ensure the liabilities created pursuant to this Investment Agreement are reduced to a minimum.

**5.** **Repayment of the Investment** 

Alberta Innovates has the right to require the Applicant to repay any portions of the Investment paid to the Applicant where:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the Applicant fails to comply with all reporting requirements set out in this Investment Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the Project is terminated by the Applicant prior to the Project Completion Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the Applicant incurs a Default.

In any of these instances, any amount of the Investment already advanced to the Applicant shall constitute a debt owed by the Applicant to Alberta Innovates on a dollar for dollar basis, together with interest, which shall accumulate from and after the date notice of rescission from Alberta Innovatesat the prime rate for commercial loans fixed by the Royal Bank on Canada at that date, plus 3%. Such debt plus accrued interest is due and payable within forty-five (45) days of Alberta Innovates delivering the notice of rescission. For clarity, Alberta Innovates will not require the Applicant to repay portions of the Investment where a Milestone could not be completed, or one of the desired outcomes of the Project was not achieved, despite the best efforts of the Applicant. Alberta Innovates acknowledges that unforeseen technical issues and other delays may occur which are outside the Applicant's reasonable control, and for that reason the Applicant is offered the opportunity to request an amendment to this Investment Agreement, per the procedure set out in ARTICLE 5.1 above - Changes and Review Procedure. Alberta Innovates may however require the Applicant to repay all or a portion of the Investment in any of the circumstances listed above where there is evidence of misuse of the Investment, a serious breach or Default, or other egregious behaviour on the part of the Applicant, as determined by Alberta Innovates in its sole discretion.

Agreement Number: 202100733 Page 10 of 18 TIER 2020 - October 2020

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| | |
|:---|:---|
| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

---

**6.** **Intellectual Property** 

Alberta innovates makes no claim to any Intellectual Property generated as a result of its Investment in the Project. The Applicant acknowledges the importance to Alberta Innovates that any Intellectual Property that may be generated through the Project be used to the benefit of Alberta and Albertans. Ownership of any Intellectual Property developed through the Project will follow the practices of the Applicant and the agreement(s) to which the Applicant is a party, and a copy of such agreement must be provided to Alberta Innovates as proof of compliance with this requirement upon request, and on a strictly confidential basis.

**7.** **Representations and Warranties** 

Alberta innovates represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. it is a Provincial research and innovation corporation established pursuant to the laws of Alberta and
is in good standing under the laws of such jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. it has all necessary power and authority to enter into, deliver, and perform its obligations under this
Investment Agreement and all necessary action has been taken to approve this Investment Agreement and the transactions contemplated herein;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. the entering into and performance of this Investment Agreement does not violate or breach any other agreement
to which Alberta Innovates is a party, or any of its constating documents.

**8.** **Representations of the Applicant** 

The Applicant represents and warrants that, both at the time of signing this Investment Agreement and throughout the Term:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. all information contained in the Applicant, together with any other documentation provided to Alberta
Innovates in relation to the Project is accurate and complete, and will remain so in all material respects during the term of this Investment
Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. it has made full, true and plain disclosure of all facts relevant to the Project and its commitments under
this Investment Agreement and will comply with same throughout the term, including specifically any ongoing disclosure and reporting obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. it has all necessary power and authority to execute, deliver and perform its obligations under this Investment
Agreement and all necessary action has been taken by it to approve this Investment Agreement and the transactions contemplated hereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. the entering into and performance of this Investment Agreement does not violate or breach any other agreement
to which it is a party or any of its constating documents, and that throughout the Project it will remain an eligible entity under the
guidelines set out in the Program Guide;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. it will ensure that the individuals named in the Project who are employees or contractors of the Applicant
will be assigned to or otherwise enabled to perform their respective roles in the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. it will complete the Project in accordance with **Schedule D** and the Application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. it will only use the Investment solely for Eligible Expenses related to the Project; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. it will not change the Project in any way from what is set out in the Application without the prior written
consent of Alberta Innovates, which consent may be withheld for any reason.

**9.** **Records, Reporting and Monitoring** 

During the Term and for a period of (5) years thereafter, the Applicant shall maintain or cause to be maintained full, accurate and complete records ofthe activities conducted in furtherance of, and the results achieved through the conduct of the Project, including without limitation full, accurate and complete records and books of account relating to the receipt and expenditure of the investment. The Applicant acknowledges that certain records required to be maintained under this Investment Agreement may be subject to the protection and access provisions of the Freedom of Information and Protection of Privacy Act (Alberta) (FOIP). Alberta Innovates may, from time to time, upon reasonable prior notice to the Applicant, audit or examine the records or books of account to be maintained in accordance with this section. The costs of any such audit, examination or report shall be paid by Alberta Innovates unless such audit, examination or report reveals a breach of this Investment Agreement or a failure by the Applicant to maintain proper records as required by this section, in which case the costs shall be paid by the Applicant.

Alberta Innovates shall be entitled, at reasonable times and upon reasonable prior notice to the Applicant to have their authorized agents attend at the premises of the Applicant to have their authorized agents attend at the premises of the Applicant or the location where the Project is being carried out for the purposes of examining the files, documents, records and other assets pertaining to the Project, or to assess whether the Applicant is complying with the terms of this Investment Agreement. The Applicant agrees to provide Alberta Innovates' authorized agents with all such assistance as may be reasonably required during such inspection. For clarity, such right of inspection shall be limited to the purpose of ascertaining whether this Investment Agreement has been complied with, and Alberta Innovates will not have any general right to obtain custody or copies of the records of the Applicant except as contemplated by this section.

**10.** **Forms** 

The Applicant agrees to use Alberta Innovates' standard form documents and other forms or reporting templates which may be provided by Alberta Innovates from time to time during the course of completing and reporting on the Project. Alberta Innovates may update or amend its standard form from time to time without notice to the Applicant. Accordingly, the Applicant is encouraged to access the particular form from Alberta Innovates at the time it is required in order to ensure the most current version of the form is used.

**11.** **Publications and Public Messaging** 

All publications, presentations and public messages concerning the Investment, or the Project must acknowledge the contribution of Alberta Innovates, the Ministry of Jobs, Economy and Innovation, and the Government of Alberta, where applicable, and be provided to Alberta Innovates in draft form for review to ensure appropriate acknowledgement is included in accordance with this Section 11, such confirmation to be received no later than ten (10) Business Days from the date of the request. Use of the full legal name 'Alberta Innovates' is required, rather than 'AI' or a similar acronym. Such approvals shall not be unreasonably withheld. Alberta Innovates' financial support or investment in a Project in no way constitutes an endorsement of the Project or the Applicant, and any suggestion or statement that Alberta Innovates endorses or approves of a Project or a party involved in the Project is strictly prohibited and may result in termination of this Investment Agreement by Alberta Innovates.

Agreement Number: 202100733 Page 11 of 18 TIER 2020 - October 2020

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12. 13. **14.** **Non-Confidential Information and Publication of Non-Confidential Information** 

In accordance with ARTICLE 4, the Applicant acknowledges and agrees that, as a public body, Alberta Innovates is required to report on and promote the success of innovation initiatives within the Province of Alberta. Accordingly, Alberta Innovates may publish and/or disseminate in the public domain certain information about the Project contained in the Application, but only where such information is explicitly marked as 'non-confidential'. Alberta Innovates may also use and disclose the Final Report in accordance with the terms of ARTICLE 4.3.

**15.** **Freedom of Information** 

Alberta Innovates is governed by FOIP. This means Alberta Innovates may be asked to disclose the information received under this Investment Agreement, or other information delivered to Alberta Innovates in relation to the Project, when an access request is made by anyone in the general public.

In the event an access request is received by Alberta Innovates, exceptions to disclosure within FOIP may apply. If an exception to disclosure applies, certain information may be withheld from disclosure. The Applicant is encouraged to familiarize itself with FOIP. Information regarding FOIP can be found at http://www.servicealberta.ca/foip/.

**16.** **Liability and Indemnities** 

Alberta Innovates shall not be liable in any way whatsoever to the Applicant or any of its directors, officers, employees, agents, personal legal representatives and/or heirs for any losses, damages or claims, including but not limited to indirect, incidental, consequential, or special damages or any loss of profits, loss of business opportunity, loss of revenue, or any other loss or injury suffered or arising in any way whatsoever in the course of the Project, whether arising before or after submitting an Application or entering into the Investment Agreement with Alberta Innovates.

The Applicant agrees to indemnity, defend and hold harmless Alberta Innovates, its directors, officers, employees and agents against and from any and all third party claims, demands, actions and costs whatsoever (including legal costs on a solicitor and his own client full-indemnity basis) that may arise directly or indirectly out of any act or omission of the Applicant, or any of its directors, officers, employees, contractors, agents or legal representatives or the negligence or tortious act or willful misconduct of the Applicant or any of its directors, officers, employees, contractors, agents or legal representatives in relation to their obligations under this Investment Agreement.

This section will survive termination or expiry of this Investment Agreement.

**17.** **Insurance** 

The Applicant shall, at its own expense and without in any way limiting its liabilities herein, insure its operations under a contract of General Liability Insurance, in accordance with the *Insurance Act* (Alberta), in an amount of not less than $2,000,000 inclusive per occurrence, insuring against bodily or personal injury and property damage, including the loss of use thereof. Such insurance must be in place before the signing of this Investment Agreement and shall be maintained during the Term. The Applicant acknowledges that no protection is available from Alberta Innovates for any third-party claims pursuant to the Project. The Applicant shall provide a certificate of insurance when requested by Alberta Innovates. Where permitted by its constating documents and bylaws, the Applicant may elect to self-insure its obligations under this section.

**18.** **Dispute Resolution** 

In the event of any dispute regarding the interpretation of any provision of this Investment Agreement, the Parties agree to refer the matter to join discussion by senior officials of the Applicant and Alberta Innovates. If such senior officials cannot resolve a dispute, the Parties may agree to participate in mediation with a mutually acceptable mediator. Mediation will proceed on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. if the Parties cannot agree on a mediator they will ask the President or Executive Director of the Alberta
Arbitration and Mediation Society to assist in the selection process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. the Parties will share the cost of the mediator equally and bear their own costs incurred with respect
to the mediation, including but not limited to any legal costs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. no evidence of anything said or of any admission or communication made in the course of the mediation
shall be admissible in any further legal proceedings, except with the consent of all Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. any resolution reached will be based on the full participation of an agreement between the Parties.

For clarity, nothing in this Investment Agreement shall abrogate Alberta innovates' rights to seek judicial or equitable relief or to enforce the terms of this Investment Agreement in a court of law.

**19.** **No Partnership, Joint Venture or Agency** 

Nothing in this Investment Agreement shall be deemed to create a partnership, joint venture, association, agency, trust, or employer-employee relationship and no Party shall be authorized to hold itself out or to act as the agent or employee of any other Party for any purpose whatsoever.

**20.** **Governing Law** 

This Investment Agreement shall be governed by the laws of the Province of Alberta and the laws of Canada applicable therein and the Parties hereby irrevocably attorn to the exclusive jurisdiction of the courts of the Province of Alberta for all disputes arising under this Investment Agreement.

**21.** **Interpretive Aids** 

All references to the singular include the plural and vice versa and references to one gender include both genders and gender-neutral parties, where applicable. Derivations of terms or expressions defined herein shall have a corresponding meaning to the defined term or expression. The headings, article and section references appearing in this Investment Agreement are for convenience and ease of reference only and in no way define, limit or describe the scope or intent of this Investment Agreement or any part thereof.

All of the provisions of this Investment Agreement shall be construed to be covenants and agreements as though the words specifically expressing covenants or agreements were used in each separate provision hereof. All recitals and schedules to this Investment Agreement are expressly incorporated herein. Any references to a statue include all applicable regulations, all amendments to that statute or applicable regulations and any statue or applicable regulation that supplements or replaces such statutes or application regulations, as the case may be. All monetary references are in lawful currency of Canada.

Agreement Number: 202100733 Page 12 of 18 TIER 2020 - October 2020

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| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

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**22.** **Assignment** 

Alberta Innovates may assign its rights under this Investment Agreement to an 'affiliate' (as that term is defined in section 2(1) of the *Business Corporations Act* (Alberta)) or successor entity on written notice to the Applicant.

**23.** **General Terms and Conditions** 

A waiver of any provision of this Investment Agreement must be in writing and signed by the Party providing the waiver, and is legally binding only in the specific instance and for the specific purpose for which it was given. The failure or delay of any Party to exercise any right under this Investment Agreement does not constitute a waiver of that right. No single or partial exercise of any right will preclude any other or further exercise of that right or the exercise of any other right, and no waiver of any of the provisions of this Investment Agreement will constitute a waiver of any other provision (whether or not similar).

If any provision of this Investment Agreement or its application to any Party or circumstances is determined by a court of competent jurisdiction to be illegal, invalid or unenforceable, it will be ineffective only to the extent of its illegality, invalidity or unenforceability without affecting the validity or the enforceability of the remaining provisions of this Investment Agreement and without affecting its application to the other Parties or circumstances.

This Investment Agreement does not and is not intended to confer any rights or remedies upon any Person other than the Parties. Any third party is not entitled to rely on the provisions of any project document in any action, suit, proceeding, hearing or other forum.

This Investment Agreement, including all schedules hereto, constitutes the entire agreement between the Parties as they relate to the obligations of Alberta Innovates under the Program. This Investment Agreement supersedes all other understandings, agreements and representations with Alberta Innovates. There are no representations, warranties, terms, conditions, covenants or other understandings, express or implied, collateral, statutory or otherwise from Alberta Innovates that the Parties are relying on in entering into and completing the Project. The Parties hereto acknowledge and agree that: (i) each Party has read and understands the terms and provisions of this Investment Agreement; and (ii) the terms and provisions of this Investment Agreement will be construed fairly as to all Parties hereto and not in favour of or against any Party, regardless of which Party was generally responsible for the preparation of this Investment Agreement.

Each Party agrees to execute, acknowledge and deliver such further instructions, and to do all such other acts, as may be necessary or appropriate in order to carry out this Investment Agreement

If any act is required by the terms of this Investment Agreement to be performed on a day which is not a Business Day, the act will be valid if performed on the next succeeding Business Day.

This Investment Agreement may be executed in any number of counterparts and delivered via facsimile or electronically in portable document format. Each such counterpart, when so executed and delivered, shall be deemed an original and all such counterparts, when taken together, shall constitute one and the same instrument.

This Investment Agreement may be modified or amended by mutual agreement of the Parties. Depending on the nature of the change, Alberta Innovates will determine if a formal amending agreement is necessary, or if updated Schedules can be circulated electronically without the need for a formal amendment.

[THIS SPACE LEFT INTENTIONALLY BLANK]

Agreement Number: 202100733 Page 13 of 18 TIER 2020 - October 2020

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**SCHEDULE B – DEFINED TERMS**

**FOR THE PURPOSES OF THIS AGREEMENT, THE FOLLOWING TERMS ARE DEFINED TO HAVE THE CORRESPONDING MEANING:**

a. **"Applicant"** means the entity identified on the front page of this Investment Agreement
who completed and submitted an approved application;

b. **"Applicant Representative"** means the individual who is authorized to act on behalf
of the Applicant;

c. **"Application"** means the application submitted by the Applicant;

d. **"Business Day"** means any day other than a Saturday, Sunday, or statutory holiday in
the Province of Alberta;

e. **"Change of Control"** means any change in Control of a Person, directly or indirectly,
by any means whatsoever (whether by merger, plan of arrangement, sale of shares or other equity interest through a single transaction
or a series of related transactions;

f. **"Contribution"** means the financial contribution to be provided by the Applicant as
detailed in ARTICLE 3;

g. **"Control"** means one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. a body corporate is controlled by a Person if: (A) securities of the body corporate to which are attached
more than 50% of the votes that may be cast to elect directors of the body corporate are beneficially owned by the Person; and (B) the
votes attached to those securities are sufficient to elect a majority of the directors of the body corporate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. an association, partnership, or other organization is controlled by a Person if: (A) more than 50% of
the ownership interests, however designated, into which the association, partnership or other organization is divided are beneficially
owned by the Person; and (B) the Person is able to direct the business and affairs of the association, partnership, or other organization;
and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. a Person that controls another Person is deemed to control any Person that is controlled or deemed to
be controlled by the other Person;

h. **"Default"** means any one (1) or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the bankruptcy or insolvency of the Applicant, including becoming the subject matter of any proceeding
relating to its bankruptcy, insolvency, receivership, liquidation, dissolution, winding up or entering into a plan of arrangement or similar
agreement with its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any breach of an obligation or failure to perform or observe any provision on its part under the Investment
Agreement or, made by the Applicant and any such breach or default continues for a period of ten (10) Business Days after receipt of written
notice from Alberta Innovates specifying such breach; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. failure by the Applicant to proceed with the Project, not carry out the Project, materially alter the
Project without obtaining Alberta Innovates prior written permission as contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. but provided that where Alberta Innovates gives notice of the occurrence of a Default and the Default
is cured within ten (10) Business Days, notice that the Default is no longer continuing will be given to Alberta Innovates by the Applicant
immediately after the Applicant becomes aware that the Default has been cured, and Alberta Innovates will not rescind its Investment on
the basis of that Default;

i. **"Eligible Expense"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. labour costs (gross wages or salaries incurred at reasonable market rates) for those individuals who are
specifically identified as performing the service which is directly attributable to the Project and thereby quantifiable or measurable.
Accordingly, general overhead is not considered an Eligible Expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. costs of materials, made at the lower of cost or fair market value, which can be specifically identified
and quantified as having been incurred in the performance of the Project activities, and which are so identified and quantified consistently
in the cost accounting practices of the Applicant;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. acquisitions of property including capital improvements to facility premises and capital equipment (but
excluding land and buildings), made at the lower of cost or fair market value, that are critical to the performance of the Project will
be considered on a case by case basis upon submission to Alberta Innovates by the Applicant. The contribution will be pro-rated to the
Project time frame based on asset's expected economic life, if purchased, at industry standard depreciation rates with any residual
undepreciated value attributed to the economic life of the asset remaining after Project completion being an Ineligible Expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. acquisitions of software or information databases, made at the lower of cost or fair market value, that
are critical to the performance of the Project will be considered. The cost of such technology will be pro-rated over the duration of
the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. additional direct operating costs (incurred at reasonable market rates), not falling within the categories
of labour and materials, but which can be specifically identified and quantified as having been incurred, or to be incurred, in the performance
of the Project activities and which are so identified and quantified consistently by the Applicant's cost accounting practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. costs relating to travel (including mileage, airfare (lowest economy class/excursion or other promotional
type of air fare must be sought at the time of booking) and accommodation), meals, entertainment, hospitality and gifts; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. any other cost which Alberta Innovates pre-approves in writing as an Eligible Expense.

j. **"Final Report"** means the final report summarizing the outcomes of the Project, to be
completed by the Applicant in the standard form no later than thirty (30) days after the Project Completion Date. The Final Report must
provide accounting for all Project revenues and expenses, and include a concise summary of what the project has achieved, and compare
the outcomes and performance of the Project with reference to the desired outcomes specified by Alberta Innovates, and the desired Project
outcomes as stated in the Application and in this Investment Agreement;

k. **"Full Time"** means a condition existing when, for a calendar month, a Person permanently
employed by an SME averages at least thirty (30) hours of service per week, or one-hundred-thirty (130) hours of service per month;

l. **"Ineligible Expense"** means any one (1) of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any cost that does not qualify as an Eligible Expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any cost incurred prior to formal approval of an Investment by Alberta Innovates, except where Alberta
Innovates has provided written approval to include the cost as an Eligible Expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. transactions between related parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. provisions for contingencies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. allowance for interest on debt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. losses on investments, bad debts and expenses for collection charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. losses on other projects or activities outside the approved Project;

Agreement Number: 202100733 Page 14 of 18 TIER 2020 - October 2020

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. fines and penalties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. unreasonable compensation for Project labour;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. costs for professional training & development;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. Federal and Provincial income taxes, goods and services taxes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xii. costs related to land and buildings (for example, acquisitions, leases and/or leasehold improvements);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiii. depreciation and amortization charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xiv. advertising costs, except reasonable advertising of an industrial or institutional character placed in
trade, technical or professional journals for the dissemination of information for the industry or institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xv. costs associated with applying for government grants and programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xvi. costs of internships or support for students of knowledge institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xvii. basic professional services, fees and disbursements, such as ongoing routine accounting, tax and legal
business requirements and financing fees unless directly related to the Project;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xviii. routine testing and maintenance; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xix. any other costs deemed ineligible by Alberta Innovates;

m. **"In-Kind"** means a contribution in goods or services to the Project, as opposed to cash;

n. **"Intellectual Property"** means tangible or intangible property in which Intellectual
Property Rights subsist and/or that is subject to Intellectual Property Rights including, without limitation, ideas, formulae, algorithms,
concepts, techniques, processes, procedures, approaches, methodologies, plans, systems, research, information, documentation, data, data
compilations, specifications, requirements, designs, diagrams, inventions, technology, computer programs (including all related code),
tools, products, knowledge, know-how and trade secrets;

o. **"Intellectual Property Rights"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. any and all proprietary rights anywhere in the world provided under: patent law, copyright law, trademark
law, design patent or industrial design law, semiconductor chip or mask work law, trade secret law, or any other statutory provision or
common law principle that provides a right in either intellectual property or the expression or use of intellectual property; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. any and all applications, registrations, licenses, sub-licenses, franchises, agreements or any other evidence
of a right in any of the foregoing;

p. **"Investment"** means the total amount of funding granted by Alberta Innovates to an Applicant
and governed by this Investment Agreement;

q. **"Investment Agreement"** means this Investment Agreement between Alberta Innovates and
the Applicant, including all schedules hereto;

r. **"Milestone"** means a major segment of the Project activities for the purpose of monitoring
and measuring the progress of the Project, concluding in every case, with a critical "go/no go" decision and **"Milestones"** mean all major segments of the Project activities which comprise the entire Project;

s. **"Milestone Payment(s)"** means the portion of the Investment allocated to a Milestone
as described in the Milestone, Reporting and Payment Schedule attached as Schedule D;

t. **"Milestone, Reporting and Payment Schedule"** means the schedule of Milestone Payments
as set out in Schedule D of this Investment Agreement;

u. **"Parties"** means the Applicant and Alberta Innovates, and "Party" means
any one (1) of them;

v. **"Person"** means any individual, body corporate, partnership, sole proprietorship, joint
venture, trust, unincorporated association, unincorporated organization, and any other entity or organization of any nature whatsoever.
Unless the context otherwise requires, any reference to a Person includes its heirs, administrators, executors and other legal representatives,
successors and permitted assigns;

w. **"Program"** means the TIER 2020 Program;

x. **"Program Guide"** means the Program Guide for the program named in this Investment Agreement,
a copy of which is available on the Alberta Innovates website.

y. **"Progress Report"** means the report required by Alberta Innovates from the Applicant
in the standard form, no later than thirty (30) days after the completion of each Milestone. The report must provide accounting for all
Project revenues and expenditures, a concise summary of what the Project has achieved, and the status of performance of the Project addressing
the specific outcomes in relation to the objectives of Alberta Innovates and the expected outcomes as stated in the Applicant's
Application and this Investment Agreement;

z. **"Project"** means the scope of work to be performed by the Applicant, as first described
in the Application, and as set out in the Milestone, Reporting, and Payment Schedule attached as Schedule D;

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|:---|:---|
| aa. | **"Project Completion Date"** means the date set out in Section 2.3 on which the Applicant anticipates completing the Project, understood to be the Milestone Completion Date of the last Milestone as indicated in Schedule D; |

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|:---|:---|
| ab. | **"Project Costs"** means all Eligible Expenses incurred during the course of the Project; |

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|:---|:---|
| ac. | **"Project Start Date"** means the date set out in Section 2.2 on which the Applicant can start incurring Project Costs, understood to be the Milestone Start Date of the first Milestone as indicated in Schedule D; |

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|:---|:---|
| ad. | **"SME"** means, for the purposes of Program, a company with fewer than 500 Full Time employees and less than $50,000,000 annual gross revenue; ae. **"Sub-Contractor"** means an entity or individual which provides services and/or products to the Applicant that are required to perform the Project; af. **"Term"** means the Term of this Investment Agreement, as defined in ARTICLE 2 of the main body above; and |

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|:---|:---|
| ag. | **"Terms and Conditions"** means the terms and conditions governing this Investment Agreement, as set out in Schedule A. |

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**The preceding definitions are not exhaustive and other defined terms may be used throughout this Investment Agreement.**

Agreement Number: 202100733 Page 15 of 18 TIER 2020 - October 2020

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| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

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**SCHEDULE C – PROJECT DESCRIPTION**

**AS ATTACHED**

Agreement Number: 202100733 Page 16 of 18 TIER 2020 - October 2020

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| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

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**SCHEDULE D**

**MILESTONE, REPORTING, AND PAYMENT SCHEDULE (MRP)**

**AS ATTACHED**

Agreement Number: 202100733 Page 17 of 18 TIER 2020 - October 2020

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| ![](cm281_ex10-7img01.jpg) | Investment Agreement<br> (TIER 2020) |

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**SCHEDULE E**

**PERFORMANCE MANAGEMENT AND EVALUATION**

**AS ATTACHED**

Agreement Number: 202100733 Page 18 of 18 TIER 2020 - October 2020

Schedule C Template

Project # G202100733

**NON-CONFIDENTIAL PROJECT SUMMARY**

**1.** **Project Description (100 words)** 

AdvEn has developed a proprietary recipe and manufacturing process to produce high-performance activated carbon, trademarked "ASAC" (AdvEn Super Activated Carbon), from refinery residues and asphaltenes generated in bitumen partial upgrading. It utilizes Alberta's rich bitumen resources as an excellent carbon precursor to manufacture clean-tech products beyond combustion. Compared to its worldwide peers, ASAC has record-breaking performance characteristics coupled with cost competitiveness. It has many applications, one immediate example of which is to build energy storage devices.

In the current project, AdvEn will expand an existing pilot plant to a commercial demonstration plant with a capacity of 300 tons/year.

**2.** **Application (75 words)** 

ASAC will provide a material technology platform that enables numerous proven or emerging downstream products for industrial and consumer uses. For example, similar products have been or can be made as an integral gradient in building energy storage devices such as batteries and supercapacitors, filtration for agriculture, biochemical, pharmaceutical, and medical applications, gas storage including hydrogen, CO2 capture, cosmetics. Many new applications can be developed by downstream entrepreneurs.

**3.** **Project Goals (125 words)** 

Its overall goals are to overcome the remaining technical challenges related to the ASAC production process and de-risk the scale-up of that process prior to full commercial production. For examples, it will demonstrate consistent production quality from a scaled-up facility – 300 tons/year. This is the final qualifier required by our customers before they can sign the purchase orders. It will also optimize the manufacturing process, enabling more cost-efficient operations.

**4.** **Benefits to Alberta (125 words)** 

AdvEn's ASAC technology will greatly contribute to the clean resource initiative being pursued by Alberta government. Some examples are listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Repurpose hydrocarbons/bitumen away from the usual combustion consumption eliminating associated downstream
GHG emissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Convert hydrocarbon residues into superior performing advanced materials for the energy storage industry
facilitating its broader adoption and greater utilization (batteries and supercapacitors).

Schedule C Template

Project # G202100733

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) ASAC production generates greatly reduced indirect GHG emission. Its total energy consumption is 1/10th
of the current commercial processes and its total GHG emission is 1/3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) ASAC uses lower production temperatures and eliminate hazardous chemicals (e.g., strong acids/bases) that
are typically used in all other AC manufacturing processes.

**5.** **Project Image**![](cm281_ex10-7img02.jpg)

**CONFIDENTIAL PROJECT DETAILS**

**1.** **Project Information** 

**Project Title:** Construction of 300T/year Commercial Demonstration ASAC Plant

**Project Location:** 9407 3 20<sup>th</sup> Avenue NW Edmonton, Alberta Canada

**Project Start Date:** 01/04/2020

**Project Completion Date**: 01/07/2022

**2.** **Project Summary** 

AdvEn has developed a proprietary recipe and manufacturing process to produce high-performance activated carbon, trademarked "ASAC" (AdvEn Super Activated Carbon), from refinery residues and asphaltenes generated in bitumen partial upgrading. Compared to current world-leading commercial products, ASAC has record-breaking performance characteristics coupled with cost competitiveness. It has many applications, the immediate of which is to build energy storage devices such as supercapacitors (SCs). In 2011, Dr. Elon Musk of Tesla predicted that, "SCs, not batteries, would be the breakthrough for EVs (Electric Vehicles)". Tesla's purchase of Maxwell in 2019, a world-leading supercapacitor manufacturer, is a testament to this statement by Dr. Musk.

Schedule C Template

Project # G202100733

Our pilot plant has been operational since 2016, currently producing ASAC at an equivalent annual capacity of 5-10 tons, from carbon precursors like asphaltenes (a by-product from bitumen's partial upgrading) and refinery residues (LC Finer Bottoms), agricultural wastes, plastic wastes and even raw bitumen. For the current project, AdvEn will build a commercial demonstration plant with a capacity of 300 tons/year. It will overcome the remaining technical challenges related to the ASAC production process and de-risk the scale-up of that process prior to full commercial production.

AdvEn's ASAC technology can greatly contribute to the clean resource initiative.

Some example contributions are listed below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Repurpose hydrocarbons/bitumen away from the usual combustion consumption eliminating associated downstream GHG emissions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Converts hydrocarbon residues into superior performing advanced materials for the energy storage industry facilitating its broader adoption and greater utilization (batteries and supercapacitors).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) ASAC production generates no direct CO2 emissions and greatly reduced indirect GHG emission. Its total energy consumption is 1/10th of the current commercial processes and its total GHG emission is 1/3.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) ASAC uses lower production temperatures and eliminate hazardous chemicals (e.g., strong acids/bases) that are typically used in all other AC manufacturing processes.

Schedule C Template

Project # G202100733

**3.** **Work Plan**![](cm281_ex10-7img03.jpg)

Schedule C Template

Project # G202100733

**4.** **Budget Table**![](cm281_ex10-7img04.jpg)

**5.** **Contributing Partners**![](cm281_ex10-7img05.jpg)

Consortium members who make in-kind contributions:

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| | |
|:---|:---|
| Company: | **Flow Filters Corp. (Ontario, Canada)** |
| Description: | Produce high quality air filters for the agriculture industry |
| Application: | Use of ASAC for high end air/odour filtration in high humidity crop environment |
| Business Opportunity: | Potential ASAC volume required – **100-150 MT/year** in 2021-2023 |
| Status: | Initial validation testing of ASAC is ongoing. Filter products to be tested by end users in the near term. |
|  | As a consortium partner, has committed $200k CAD in kind development support |

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Schedule C Template

Project # G202100733

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|:---|:---|
| Company: | **University of British Columbia** |
| Description: | A research group focusing on advanced nanofabrication, nanomaterials and nanotechnology, energy storage systems and next-generation batteries Use of AdvEn's activated carbons for the development of Li-Te batteries |
| Application: | Development of new markets for ASAC products |
| Business Opportunity: | Dr. Liu research group had finished electrode material selection and found that one of the products supplied by AdvEn Industries (ASAC-25) showed the best performances. A paper reporting the results of Li-Te batteries using ASAC-25 has been accepted to publish in Carbon. The research group is now in partner with Fenix Advanced Materials to commercialize its Li-Te battery technology. Fenix is a supplier of high purity Tellurium, one of the key chemical ingredients of Li-Te batteries. UBC group will be engaging with AdvEn in assessing ASAC-products from AdvEn's demo plant for their performance and consistency in Li-Te battery application. |
| Status: | As a consortium partner, has committed $83k CAD in kind development support |

---

Schedule C Template

Project # G202100733

**6.** **Metrics**![](cm281_ex10-7img06.jpg)

Schedule C Template

Project # G202100733

![](cm281_ex10-7img07.jpg)

![](cm281_ex10-7img08.jpg)

**SCHEDULE D - MILESTONE REPORTING AND PAYMENT SCHEDULE (MRP)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Payment Due**<br> **Upon<br> Execution:** | $2000000.00 |  |  |  |  |  |  |  |  |
| **Milestone<br> Number** | **Milestone<br> Start Date** | **Milestone End<br> Date** | **Applicant Cash<br> Contribution** | **Applicant In-<br> Kind<br> Contribution** | **Total Applicant<br> Contribution** | **Alberta<br> Innovates<br> Contribution** | **Total Value of<br> Milestone** | **Report Due<br> Date** | **Expected<br> Payment Date<br> by AI\*** |
| 1 | 01/04/2020 | 01/02/2021 | $348000.00 | $0.00 | $348000.00 | $0.00 | $348000.00 | 03/03/2021 |  |
| Milestone 1<br> Description | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter | Title: Plant Design, Land Lease & Facility Acquisition Deliverables: as described in Schedule C Work Plan and engagement of team member with manufacturing expertise to fulfill funding condition found in funding notification letter |
| 2 | 01/11/2020 | 01/04/2021 | $2471059.00 | $0.00 | $2471059.00 | $750000.00 | $3221059.00 | 01/05/2021 | 15/06/2021 |
| Milestone 2<br> Description | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan | Title: Equipment Procurement Equipment Deliverables: as described in Schedule C Work Plan |
| 3 | 15/11/2020 | 01/07/2021 | $1797583.00 | $0.00 | $1797583.00 | $500000.00 | $2297583.00 | 31/07/2021 | 14/09/2021 |
| Milestone 3<br> Description | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan | Title: Facility Construction & Plant Commissioning Deliverables: as described in Schedule C Work Plan |
| 4 | 01/07/2021 | 01/12/2021 | $2646119.00 | $283000.00 | $2929119.00 | $175000.00 | $3104119.00 | 31/12/2021 | 14/02/2022 |
| Milestone 4<br> Description | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan | Title: Plant Operations (1st 6 mo - First Production - satisfy LOI for end users) Deliverables: as described in Schedule C Work Plan |
| 5 | 01/01/2021 | 01/07/2022 | $2646119.00 | $0.00 | $2646119.00 | $175000.00 | $2821119.00 | 07/07/2022 | 14/09/2022 |
| Milestone 5<br> Description |  |  |  |  |  |  |  |  |  |
| 6 |  |  | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |  |  |
| Milestone 6<br> Description |  |  |  |  |  |  |  |  |  |
| 7 |  |  | $0 | $0 | $0 | $0 | $0 |  |  |
| Milestone 7<br> Description |  |  |  |  |  |  |  |  |  |
|  |  | **Totals:** | $9908880.00 | $283000.00 | $10191880.00 | $3600000.00 | $13791880.00 | ![](cm281_ex10-7img09.jpg) Total Project<br> Costs |  |
| **Percent from**<br> **AI:** | 26.10% | **Percent from**<br> **Applicant:** | 73.90% |  |  |  |  |  |  |

---

202100733 - Submitted Schedule for AdvEn Industries Inc. Page 1 of 1

![](cm281_ex10-7img01.jpg)

**SCHEDULE E – PERFORMANCE MANAGEMENT AND EVALUATION**

**I.** **Program Overview** 

The **Alberta Innovates Technology Innovation and Emission Reduction (TIER) Economic Recovery Program** is intended to support "shovel ready" projects that will accelerate innovation in support of long-term competitiveness and stimulate growth in critically important sectors of Alberta's economy.

The Program will provide near-term capital to innovators in critical Alberta industries, while also identifying opportunities and solutions for long-term economic recovery, investment attraction, job creation, and emissions reduction.

**II.** **Program Objectives** 

The objective of the program is advance innovative technologies that can:

· lead to GHG emissions reduction;

· increase Alberta industry competitiveness;

· create or maintain skilled jobs within Alberta,
and

· will result in or enable future economic growth.

**III.** **Project Advisor** 

· The Project will be assigned an Alberta Innovates
Project Advisor whose role will be to regularly monitor project processes and performance to support milestone progression and outcome
attainment.

· Over the life of the Project, Alberta Innovates
will employ an active project monitoring approach to support the Applicant in reaching project objectives.

· Funding is tied to outcomes and achievement of
results which will be evaluated via the submission of progress and performance outcome reports to Alberta Innovates through the Project
Advisor.

**IV.** **Performance and Evaluation Data Collection** 

The Applicant shall be responsible for completing the following Data Collection Submissions during the term of the Agreement and for five years thereafter as outlined below:

&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Greenhouse Gas (GHG) Emission Quantification Data Collection** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Applicant shall be contacted by Alberta Innovates
GHG Consultant within the first three months after agreement execution to provide information in order to conduct a project level GHG
quantification. The information will be obtained during the course of a telephone interview and Applicants may be required to obtain and
provide follow-up information as needed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Submission of this information shall be considered
a project Milestone. Information must be provided to the satisfaction of the GHG Consultant prior to the Milestone and going forward payments
being approved by the Project Advisor.

![](cm281_ex10-7img01.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The applicant may be required to provide follow-up
GHG information during the term of the Agreement as required.

&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Statistics Canada Input Output Model Data Collection** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Applicant shall be required to complete and
submit project budget breakdown and leveraged dollar information on an annual basis during the term of the Agreement. A template shall
be provided to submit this information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Submission of this information shall be considered
a project Milestone. Information must be provided to the satisfaction of the Project Advisor prior to the Milestone and going forward
payments being approved.

&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Performance Indicator Data Collection** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· The Applicant shall be required to complete an
annual performance indicator survey during the term of the grant and for five years thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Alberta Innovates shall track and report on key
performance indicators including but not limited to the following:

---

| | | |
|:---|:---|:---|
| **Economic** | · | Technology Readiness Level progression |
| **Competitiveness** | · | $ leveraged from individual sources including Federal government, industry and others |
| -Advance Discoveries | · | # of publications and relative citations |
| -Enable Technology and Platforms | · | # of innovations implemented (by project end date and during 5-years post-project reporting) |
| -Innovate and Commercialize | · | # of technologies commercially deployed (by project end date and during 5-years post-project reporting) |
|  | · | # of clean technology patents filed (by project end date and during 5- years post project reporting |
|  | · | # of Project partners (stakeholders reached) |
| **Job Creation** | · | # of researchers and innovators supported and trained |
| -Enhance Alberta's<br> Workforce | · | # of people employed by funded TIER activities |
| **Prosperous Economy** | · | $ generated to provincial GDP from TIER activities |
|  | · | Total imports generated from TIER investment |
|  | · | Total exports generated from TIER investment |
| **Sustainable Environment** | · | Cumulative GHG reductions from TIER projects forecasted to 2030/2040/2050 |
|  | · | Energy savings indicators |
|  | · | Water savings indicators |
|  | · | Renewable energy indicators |
| **Climate Resiliency** | · | Resilience/Adaptation capacity indicators |

---

## Exhibit 10.8

**Exhibit 10.8**

---

| | |
|:---|:---|
| ![](cm281_ex10-8img01.jpg) | Investment Amendment # 1<br> (TIER 2020)<br> Agreement Number: 202100733 |

---

**THIS INVESTMENT AMENDMENT EFFECTIVE THE 1ST DAY OF JUNE 2021, BETWEEN:** 

**ALBERTA INNOVATES**

A Provincial research and innovation corporation

established pursuant to Section 6.1(3) of the *Alberta* 

*Research and Innovation Act*

**- and –** 

**ADVEN INDUSTRIES INC.**

A Corporation incorporated under the laws of

the Province of Alberta

(the "**Applicant**")

**BACKGROUND**

1. Alberta Innovates and the Applicant entered into an Investment Agreement under the TIER 2020 Program titled "Construction of 300T/year Commercial Demonstration ASAC Plant," dated the 1st day of April 2020; and

2. The Parties wish to amend the Investment Agreement.

**NOW THEREFORE, FOR GOOD AND VALID CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED BY ALBERTA INNOVATES AND THE APPLICANT:**

1. The Agreement is hereby amended:

(a) by extending the Project Completion date to December 31, 2022;

(b) by replacing the Schedule D with the revised Schedule D attached.

2. The Applicant acknowledges that no additional contribution is guaranteed or expected past the Term and that nothing in this Amendment shall be construed as an obligation of any kind on Alberta Innovates to fund the Applicant past the Term;

3. These amendments shall be incorporated into and form part of the Agreement effective as of the date at the beginning of this Amendment; and

4. Except as amended by this Amendment, all terms and conditions of the Agreement remain in full force and effect. Capitalized terms used in this Amendment but not defined shall have the meaning given to them in the Agreement.

This Amendment may be executed in any number of counterparts and delivered via facsimile or electronically in portable document format. Each such counterpart, when so executed and delivered, shall be deemed an original and all such counterparts, when taken together, shall constitute one and the same instrument.

Agreement Number: 202100733 Page 1 of 5

Investment Amendment # 1 <br> (TIER 2020)

**[The remainder of this page has been intentionally left blank. Signature pages follow]**

Agreement Number: 202100733 Page 2 of 5

Investment Amendment # 1 <br> (TIER 2020)

**ALBERTA INNOVATES**

---

| |
|:---|
| Per: Maureen Lomas |
| Vice President, Finance |
| Per: Laura Kilcrease |
| CEO |

---

[THIS SPACE LEFT INTENTIONALLY BLANK]

Agreement Number: 202100733 Page 3 of 5

---

| | |
|:---|:---|
| ![](cm281_ex10-8img01.jpg) | Investment Amendment # 1 <br> (TIER 2020) |

---

**<u>CONSENT AND ACKNOWLEDGEMENT TO BE BOUND TO THE INVESTMENT AGREEMENT BY THE APPLICANT:</u>**

The undersigned agrees to be bound by this Investment Agreement.

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** |  |
| ![](cm281_ex10-8img02.jpg) | ![](cm281_ex10-8img02.jpg) |
| Per: (printed name): | Yanguang Yuan |
| Position: | CEO |
| I have authority to bind the company. |  |

---

[THIS SPACE LEFT INTENTIONALLY BLANK]

Agreement Number: 202100733 Page 4 of 5

---

| | |
|:---|:---|
| ![](cm281_ex10-8img01.jpg) | Investment Amendment # 1 <br> (TIER 2020) |

---

**SCHEDULE D**

**MILESTONE, REPORTING, AND PAYMENT SCHEDULE (MRP)** 

**AS ATTACHED**

Agreement Number: 202100733 Page 5 of 5

![](cm281_ex10-8img01.jpg)

**SCHEDULE D - MILESTONE REPORTING AND PAYMENT SCHEDULE (MRP)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Payment Due Upon Agreement Execution:** | $2000000.00 |  |  |  |  |  |  |  |  |
| **Milestone**<br> **Number** | **Milestone Start**<br> **Date\*** | **Milestone End**<br> **Date\*\*** | **Applicant Cash**<br> **Contribution** | **Applicant In-Kind**<br> **Contribution** | **Total Applicant**<br> **Contribution** | **Alberta Innovates**<br> **Contribution** | **Total Value of**<br> **Milestone** | **Report**<br> **Due Date** | **Expected**<br> **Payment Date**<br> **by AI\*** |
| 1 | 01/04/2020 | 01/06/2021 | $348000.00 | $0.00 | $348000.00 | $0.00 | $348000.00 | 01/07/2021 |  |
| Milestone 1 Description | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider |
| 2 | 01/06/2021 | 31/10/2021 | $1277427.00 | $0.00 | $1277427.00 | $350000.00 | $1627427.00 | 30/11/2021 | 14/01/2022 |
| Milestone 2 Description | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. |
| 3 | 01/04/2021 | 30/11/2021 | $4471059.00 | $0.00 | $4471059.00 | $750000.00 | $5221059.00 | 30/12/2021 | 13/02/2022 |
| Milestone 3 Description | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and >60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. |
| 4 | 01/11/2021 | 31/01/2022 | $519611.00 | $0.00 | $519611.00 | $150000.00 | $669611.00 | 02/03/2022 | 16/04/2022 |
| Milestone 4 Description | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. | Plant Commissioning The production line is properly installed and ready for production commissioning. Production line is ready to start operations. |
| 5 | 01/02/2022 | 31/12/2022 | $5467238.00 | $283000.00 | $5750238.00 | $175000.00 | $5925238.00 | 30/01/2023 | 16/03/2023 |

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202100733 - Submitted Schedule for AdvEn Industries Inc. Page 1 of 2

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Plant Operations 1st 6mo - First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. 2nd 5mo - de bottle neck & optimize process. Deliverables as described in Schedule C work plan Batch samples from the production | Plant Operations 1st 6mo - First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. 2nd 5mo - de bottle neck & optimize process. Deliverables as described in Schedule C work plan Batch samples from the production | Plant Operations 1st 6mo - First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. 2nd 5mo - de bottle neck & optimize process. Deliverables as described in Schedule C work plan Batch samples from the production | Plant Operations 1st 6mo - First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. 2nd 5mo - de bottle neck & optimize process. Deliverables as described in Schedule C work plan Batch samples from the production | Plant Operations 1st 6mo - First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. 2nd 5mo - de bottle neck & optimize process. Deliverables as described in Schedule C work plan Batch samples from the production | Plant Operations 1st 6mo - First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. 2nd 5mo - de bottle neck & optimize process. Deliverables as described in Schedule C work plan Batch samples from the production | Plant Operations 1st 6mo - First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. 2nd 5mo - de bottle neck & optimize process. Deliverables as described in Schedule C work plan Batch samples from the production | Plant Operations 1st 6mo - First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. 2nd 5mo - de bottle neck & optimize process. Deliverables as described in Schedule C work plan Batch samples from the production |
| Milestone 5 Description | plant to be sent to LOI partners for their final validation before the PO is signed. Firm confirmation of longer term POs and customer contracts are signed with end users. Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield with base case feedstock (LC fine bottoms) Establish a high production line reliability (goal of 95% uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements | plant to be sent to LOI partners for their final validation before the PO is signed. Firm confirmation of longer term POs and customer contracts are signed with end users. Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield with base case feedstock (LC fine bottoms) Establish a high production line reliability (goal of 95% uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements | plant to be sent to LOI partners for their final validation before the PO is signed. Firm confirmation of longer term POs and customer contracts are signed with end users. Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield with base case feedstock (LC fine bottoms) Establish a high production line reliability (goal of 95% uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements | plant to be sent to LOI partners for their final validation before the PO is signed. Firm confirmation of longer term POs and customer contracts are signed with end users. Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield with base case feedstock (LC fine bottoms) Establish a high production line reliability (goal of 95% uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements | plant to be sent to LOI partners for their final validation before the PO is signed. Firm confirmation of longer term POs and customer contracts are signed with end users. Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield with base case feedstock (LC fine bottoms) Establish a high production line reliability (goal of 95% uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements | plant to be sent to LOI partners for their final validation before the PO is signed. Firm confirmation of longer term POs and customer contracts are signed with end users. Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield with base case feedstock (LC fine bottoms) Establish a high production line reliability (goal of 95% uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements | plant to be sent to LOI partners for their final validation before the PO is signed. Firm confirmation of longer term POs and customer contracts are signed with end users. Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield with base case feedstock (LC fine bottoms) Establish a high production line reliability (goal of 95% uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements | plant to be sent to LOI partners for their final validation before the PO is signed. Firm confirmation of longer term POs and customer contracts are signed with end users. Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield with base case feedstock (LC fine bottoms) Establish a high production line reliability (goal of 95% uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements |
|  |  | **Totals:** | $12083335.00 | $283000.00 | $12366335.00 | $3425000.00 | $15791335.00 | Total project Costs |
| **Percent from Al:** | 21.69% | **Percent from Applicant:** | 78.31% |  |  |  |  |  |

---

\*Contingent on our review and approval of the related report, which may be delayed if Al requires additional information from the Applicant, or if sections of the report are incomplete.

202100733 - Submitted Schedule for AdvEn Industries Inc. Page 2 of 2

## Exhibit 10.9

**Exhibit 10-9**

---

| | |
|:---|:---|
| ![](cm281_ex10-9img01.jpg) | &nbsp;&nbsp;Investment Amendment #2<br> (TIER 2020)<br> Agreement Number: 202100733<br>|

---

**THIS INVESTMENT AGREEMENT AMENDMENT (THE "AMENDMENT") DATED EFFECTIVE THE 7TH DAY OF FEBRUARY 2023, (THE "EFFECTIVE DATE") BETWEEN:** 

**ALBERTA INNOVATES**

A Provincial research and innovation corporation

established pursuant to Section 6.1(3) of the *Alberta* 

*Research and Innovation Act*

 

*-* **and -**

**ADVEN INDUSTRIES INC.**

A Corporation incorporated under the laws of

the Province of Alberta

("Applicant")

**BACKGROUND**

&nbsp;&nbsp;&nbsp;&nbsp;1. Alberta Innovates and
 the Applicant signed an Investment Agreement under the TIER 2020 program titled "Construction
 of 300T/year Commercial Demonstration ASAC Plant," and dated the 1st day of April 2020
 (the **"Original Agreement");** 

&nbsp;&nbsp;&nbsp;&nbsp;2. The Original Agreement
 was amended by way of an Investment Amendment dated effective the 1st day of June 2021 ("Amendment
 #1");

&nbsp;&nbsp;&nbsp;&nbsp;3. The Original Agreement,
 together with Amendment #1, are collectively referred to in this Amendment as the **"Agreement"** 

&nbsp;&nbsp;&nbsp;&nbsp;4. The Parties have agreed
 to further amend the Agreement on the terms set out in this Amendment.

**NOW THEREFORE, FOR GOOD AND VALID CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH IS HEREBY ACKNOWLEDGED, THE PARTIES AGREE AS FOLLOWS:**

1. The Agreement is hereby
 further amended:

(a) by extending the Project
 Completion Date from December 31, 2022, to December 31, 2023;

(b) by deleting **Schedule D** - Milestone, Reporting and Payment Schedule in its entirety and replacing it with the
 revised **Schedule D** attached to reflect the amendments referenced in this Section.

2. The Applicant acknowledges
 that no additional Investment is guaranteed or expected past the Term and that nothing in
 this Amendment shall be construed as an obligation of any kind on Alberta Innovates to fund
 the Applicant past the Term.

3. This Amendment shall be
 incorporated into and form part of the Agreement as of the Effective Date.

Agreement Number: 202100733 Page 1 of 5 January 2023

---

| | |
|:---|:---|
| ![](cm281_ex10-9img01.jpg) | Investment Amendment #2 |
| ![](cm281_ex10-9img01.jpg) | (TIER 2020) |

---

4. Except as amended by this
 Amendment, all terms and conditions of the Agreement remain in full force and effect, unamended.

5. Capitalized terms used
 but not defined in this Amendment have the meaning given to them in the Agreement.

6. This Amendment may be
 executed in any number of counterparts and delivered electronically in portable document
 format.

Agreement Number: 202100733 Page 2 of 5 January 2023

---

| | |
|:---|:---|
| ![](cm281_ex10-9img01.jpg) | &nbsp;&nbsp;Investment Amendment #2<br> (TIER 2020)<br>|

---

**ALBERTA INNOVATES**

---

| |
|:---|
| /s/Barry McNabb |
| Per: Barry McNabb |
| Vice President, Finance |
| /s/ Laura Kilcrease |
| Per: Laura Kilcrease |
| CEO |

---

[THIS SPACE LEFT INTENTIONALLY BLANK]

Agreement Number: 202100733 Page 3 of 5 January 2023

---

| | |
|:---|:---|
| ![](cm281_ex10-9img01.jpg) | &nbsp;&nbsp;Investment Amendment #2<br> (TIER 2020)<br>|

---

**<u>Applicant Notice Addresses:</u>**

\*Please complete only if there have been any changes since the Original Agreement, or most recent Amendment, had been signed.

---

| |
|:---|
| **For Project Matters:** |
| Name: |
| Address: |
| Phone: |
| Email: |
| **For Agreement Matters:** |
| Name: |
| Address: |
| Phone: |
| Email: |

---

**<u>CONSENT AND ACKNOWLEDGEMENT TO BE BOUND TO THE INVESTMENT AGREEMENT BY THE APPLICANT:</u>**

The undersigned agrees to be bound by this Investment Agreement.

**ADVEN INDUSTRIES INC.**

---

| | |
|:---|:---|
| ![](cm281_ex10-9img02.jpg) | ![](cm281_ex10-9img02.jpg) |
| Per: (printed name): | Yanguang Yuan |
| Position: | CEO |
| I have authority to bind the Applicant. | I have authority to bind the Applicant. |

---

[THIS SPACE LEFT INTENTIONALLY BLANK]

Agreement Number: 202100733 Page 4 of 5 January 2023

---

| | |
|:---|:---|
| ![](cm281_ex10-9img01.jpg) | &nbsp;&nbsp;Investment Amendment #2<br> (TIER 2020)<br>|

---

**SCHEDULE B** 

**MILESTONE, REPORTING, AND PAYMENT SCHEDULE (MRP)**

**AS ATTACHED**

Agreement Number: 202100733 Page 5 of 5 January 2023

![](cm281_ex10-9img01.jpg)

**SCHEDULE B - MILESTONE REPORTING AND PAYMENT SCHEDULE (MRP)**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Payment Due Upon Agreement Execution:** | $2000000.00 |  |  |  |  |  |  |  |  |
| **Milestone**<br> **Number** | **Milestone Start**<br> **Date\*** | **Milestone End**<br> **Date\*\*** | **Applicant Cash**<br> **Contribution** | **Applicant In-Kind**<br> **Contribution** | **Total Applicant**<br> **Contribution** | **Alberta Innovates**<br> **Contribution** | **Total Value of**<br> **Milestone** | **Progress /**<br> **Final Report**<br> **Due Date\*\*\*** | **Expected**<br> **Payment Date**<br> **by AI\*\*\*\*** |
| 1 | 01/04/2020 | 01/06/2021 | $348000.00 | $0.00 | $348000.00 | $0.00 | $348000.00 | 01/07/2021 |  |
| <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider | <u>Description:</u> Title: Plant Design, Land Lease & Facility Acquisition & Feedstock Agreement(s) Research and finalize the first-level process design. Research, negotiate and finalize technical specifications and purchase of major equipment Study and finalize detailed engineering design for major process steps and material transfer between them: feedstock mixing, treatment of exhaust from carbonization, washing and treatment of wastewater, drying and packaging. Finalize plant site lease selection Sign - Secure Agreement with Feedstock Provider |
| 2 | 01/06/2021 | 31/10/2021 | $1277427.00 | $0.00 | $1277427.00 | $350000.00 | $1627427.00 | 30/11/2021 | 14/01/2022 |
| <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. | <u>Description:</u> Facility Construction Office ready for employees to move in; Floor, water, electricity and other supporting structures ready for accepting equipment; Storage tanks ready for receiving the first feedstock delivery; Employees are recruited and properly trained. This is a continuing process throughout the project, esp. before the plant is fully operational. Primary equipment tested and tuned for operation as designed/expected before they are shipped out of the factories. |
| 3 | 01/04/2021 | 30/11/2021 | $4471059.00 | $0.00 | $4471059.00 | $750000.00 | $5221059.00 | 30/12/2021 | 13/02/2022 |
| <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. | <u>Description:</u> Equipment Procurement POs issued and active vendor management till FAT (factory acceptance testing) completed - overseas equipment. Equipment shipped and **>**60% of PO value paid to vendors. Study and finalize local vendor options. To secure local suppliers for portion of the total equipment cost (Goal 30-50%). Examples include storage tanks, vessels, bins, pumps, conveyors, electrical, HVAC etc. |
| 4 | 01/11/2021 | 31/01/2023 | $344611.00 | $0.00 | $344611.00 | $325000.00 | $669611.00 | 02/03/2023 | 16/03/2023 |
| <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. | <u>Description:</u> Progress Report on activities since last milestone report. |
| 5 | 01/02/2023 | 31/12/2023 | $3642238.00 | $283000.00 | $3925238.00 | $0.00 | $3925238.00 | 30/01/2024 |  |
| <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. | <u>Description:</u> Plant Commissioning The production line is properly installed and ready for production commissioning. The production line is ready to start operations. Plant Operations First Production - meet quality and quantity requirements and validate with end users. Confirm end user committed PO contracts. Batch samples from the production plant to be sent to LOI partners for their final validation before the PO is signed. Plant Operations De bottle neck & optimize process. Deliverables as described in Schedule C work plan Ensure product consistency Identify process optimization opportunities and debottleneck Optimize ASAC output yield Establish a high production line reliability (goal of **95%** uptime) Deliver all ASAC product to customers, meeting their volume, quality and schedule requirements Firm confirmation of longer term POs and customer contracts are signed with end users. |
|  |  | **Totals:** | $10083335.00 | $283000.00 | $10366335.00 | $3425000.00 | $13791335.00 |  |  |
| **Percent from AI:** | 24.83% | **Percent from Applicant:** | 75.17% |  |  |  |  |  |  |

---

202100733 - Update PDF Schedule for AdvEn Industries Inc. Page 1 of 2

![](cm281_ex10-9img01.jpg)

\*The start date of the first Milestone will constitute the Project Start Date, and must be within the same or a future April 1 – March 31 fiscal year as the Effective Date on the Investment Agreement.

\*\*Please order Milestones by Completion Date and ensure there are no date gaps between any Milestone End Date and the next Milestone Start Date. Completion Dates must be at least 30 days apart. Milestones may overlap, but Alberta Innovates will not review more than one report or issue more than one payment per calendar month.

\*\*\*No Report Due Date may be before the Effective Date. In addition, no Report Due Date may be between March 16th and March 31st of any year. This is required to enable Alberta Innovates to meet its fiscal year-end deadlines for issuing payments.

\*\*\*\*Contingent on our review and approval of the related report, which may be delayed if AI requires additional information from the Applicant, or if sections of the report are incomplete.

202100733 - Update PDF Schedule for AdvEn Industries Inc. Page 2 of 2

## Exhibit 10.10

**Exhibit 10.10**

Execution Version

**VIA EMAIL AT <u>TONY.TAN@ADVEN-INDUSTRIES.COM</u>**

**WITH A COPY TO LEGAL COUNSEL FOR THE SELLER** 

**AT BENNETT.WONG@DENTONS.COM** 

**JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED**

63 Cougar Plateau Circle, SW

Calgary, Alberta, Canada

November 26, 2021

Dear Mr. Qingtao Tan:

**<u>RE: PURCHASE OF 3,699,000 COMMON SHARES IN THE AUTHORIZED CAPITAL OF ADVEN INDUSTRIES INC.</u>**

This binding letter agreement (the **Letter Agreement**) sets forth the transaction terms pursuant to which AdvEn Industries Inc. (**AdvEn**) or an assignee of AdvEn, as determined in its sole discretion (collectively, the **Buyer**) will purchase the 3,699,000 common shares in the authorized capital of AdvEn (the **Sold Shares**) held by JiuHua Investment Holdings Company Limited (the **Seller**).

The Buyer and the Seller (collectively, the **Parties**) agree that this Letter Agreement is a binding agreement which supersedes any and all other oral or written statements or agreements relating to the subject matter hereof. The Parties hereby confirm that, to the extent that any further agreements or instruments are required to be entered into to give full effect to the nature and substance of this Letter Agreement, the Parties will proceed expeditiously and in good faith to enter into such other further agreements or instruments provided that, notwithstanding the contemplation of the foregoing, this Letter Agreement will remain a legally binding agreement of each of the Parties in accordance with the terms hereof.

**<u>Part A: Description of the Transaction</u>**

&nbsp;&nbsp;&nbsp;&nbsp;1. **Transaction Structure:** (a) On
 or before November 30, 2021 or such other date that the Parties may mutually agree to (the **Closing Date**), the Buyer will purchase all of the Sold Shares from the Seller, free
 and clear of any and all liens, encumbrances and adverse claims thereon of any nature whatsoever.
 The consideration payable for the Sold Shares will be a payment of CAD$1,500,000 to be made
 by the Buyer to the trust account of the Seller's legal counsel on the Closing Date
 (the **Cash Payment**) and the delivery by the Buyer to the Seller of a promissory note
 in the principal amount of CAD$500,000 (the **Promissory Note**) in substantially the
 form attached hereto as Schedule "A". The effective date of the purchase of the
 Sold Shares will be as at the date of original issuance to the Seller of the same.

&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
 Seller represents and warrants to the Buyer in this Letter Agreement that the Sold Shares
 represent all of the securities held by the Seller in the authorized capital of AdvEn, inclusive
 of securities convertible into common shares of AdvEn, and that the Seller does not hold
 any interest in the securities of any other related persons of AdvEn including, but not limited
 to, AdvEn Bitumen Innovation Inc. and Tangold Inc. (collectively, the **Related Persons**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 closing of the Share Exchange Transaction (as defined below) is a condition precedent to
 the obligations and agreements of AdvEn and/or the Buyer under this Letter Agreement.

2. **Promissory Note Terms:** The
 Promissory Note will contain the following terms:

(a) repayable
 by the Buyer over a period of seventeen (17) weeks following the Closing Date (the **Maturity Date**) and in two (2) equal installments of CAD$250,000 each provided that the Buyer will
 be entitled to prepay any amounts owing under the Promissory Note at any time in its sole
 discretion without notice, bonus or penalty. For greater certainty, the last instalment payment
 to be made by the Buyer to the Seller will include the amount of any and all outstanding
 accrued but unpaid interest on the Promissory Note;

(b) the
 Promissory Note will bear interest in the manner more particularly set forth therein. The
 Buyer will pay the Seller the amount of such accrued interest on a monthly basis; and

(c) the
 obligations of the Buyer set forth in the Promissory Note will be secured in the manner more
 particularly described in Section 3 of this Letter Agreement.

3. **Security:** The
 obligation of the Buyer to repay the principal of the Promissory Note together with any and
 all accrued interest thereon will be secured as follows:

---

| | |
|:---|:---|
| (a) | on and after the Closing Date, the Sold Shares (that have then been registered in the name of the Buyer) will be pledged by the Buyer to the Seller until all obligations set forth in the Promissory Note have been satisfied in full. In the event that such obligations are not satisfied by the Maturity Date, AdvEn and the Buyer (if not AdvEn) will take any and all steps necessary to cause a certain number of the Sold Shares to be transferred back into the name of the Seller effective on the Maturity Date determined in accordance with the following formula: |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 = B – (C/D)<br>Whereby:<br>A = Number of Sold Shares to be transferred back from Buyer to Seller<br>B = 3,699,000 (being the total number of Sold Shares)<br>C = Total amount of principal of the Promissory Note repaid by the Buyer to the Seller as at the Maturity Date plus the amount of the Cash Payment<br>D = 0.54069 (being the deemed value of each Sold Share for the purposes of this Letter Agreement) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For
 greater certainty, the Cash Payment will be deemed to have been forfeited by the Buyer and
 will not be reimbursable by the Seller to the Buyer in the event of default as contemplated
 in the foregoing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on
 the Closing Date, AdvEn will execute and deliver to the Seller a general security agreement
 (the **GSA**) pursuant to which all of the personal property and after acquired assets
 of AdvEn, including, but not limited to, the intellectual property of AdvEn, will be put
 forward as security in favour of the Seller for the due performance by the Buyer of the obligations
 set forth in the Promissory Note or, alternatively, the performance by AdvEn in connection
 with the provisions of Section 3(a) of this Letter Agreement. Notwithstanding the foregoing,
 the Seller agrees that any and all security obtained from AdvEn in connection with the GSA
 will be and is hereby subordinated and postponed in favour of the current secured creditors
 of AdvEn (namely KNP Group Inc. and 1367054 Alberta Ltd.), Spartan Capital Securities, LLC
 (**Spartan**) and in connection with the currently contemplated brokered and/or non-brokered
 private placements of convertible debt securities, or a similar financing structure, for
 aggregate net proceeds of not less than CDN$5,000,000 (after payment of agent commissions,
 agent expenses, and the legal and accounting expenses of Nano Innovations Inc. (**Nano**)
 incurred in connection therewith) (the **Qualified Financing**), any other third party
 investors investing with or through Spartan in connection with the Qualified Financing (collectively,
 the **Senior Creditors**). The Seller hereby agrees that it will not be entitled to commence
 any action or proceeding against AdvEn for the realization of any indebtedness or other recovery
 proceedings in connection with the GSA without the prior written consent of the Senior Creditors.
 Accordingly, the Seller agrees to execute any and all subordination, standstill and postponement
 documentation or instruments required by the Senior Creditors or any one of them in such
 form as such Senior Creditors may require. For greater certainty, the Seller will take such
 steps so as to ensure that the completion of the Qualified Financing will not be prohibited,
 limited and/or restricted by way of the issuance of the GSA to the Seller. Any breach of
 the foregoing provisions by the Seller will be deemed a fundamental breach of the terms of
 this Letter Agreement and, in addition to any other rights available to the Buyer at law
 or in equity, will entitle the Buyer to treat the Promissory Note as void and of no further
 effect as against the Buyer and such treatment is agreed not to be a penalty but is intended
 to serve as compensation for the damages suffered by the Buyer and AdvEn as a result of such
 fundamental breach by the Seller.

&nbsp;&nbsp;&nbsp;&nbsp;4. **Resignation:** As
 a condition to the closing of the transaction contemplated in this Letter Agreement (the **Transaction**), the Seller will cause Qingtao Tan to resign from any and all directorships
 or offices that Qingtao Tan may hold with any of AdvEn and/or the Related Persons with such
 resignation to be effective on or before the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;5. **Release of the Seller:** (a) On
 and after the Closing Date, the Seller does hereby release, remise and forever discharge
 AdvEn, Nano, the Related Persons respective directors, officers, employees, agents, contractors, successors and assigns,
 as the case may be, (collectively, the **AdvEn Releasees**) from any and all action, causes
 of action, claims, suits, debts, proceedings, duties, covenants (whether implied or express),
 contracts, agreements, demands, damages, sums of money, grievances, executions, rights, obligations
 and liabilities of every kind and nature whatsoever, whether in law or in equity, which the
 Seller or any director, officer, employee, agent, contractor, successor and assignee of the
 Seller, including, but not limited to, Qingtao Tan (collectively, the **Seller Releasors**)
 ever had, now has, or in the future may have, arising from the Seller having been a shareholder
 of AdvEn or from any of the Seller Releasors having acted as a director or officer of AdvEn
 or any of the Related Persons, as the case may be, and the Seller hereby agrees on behalf
 of itself and the Seller Releasors to indemnify, defend, save and hold harmless the AdvEn
 Releasees and to reimburse the AdvEn Releasees from and against any and all such claims arising
 in connection therewith. For greater certainty, the obligations and agreements of AdvEn and/or
 the Buyer, as the case may be, set forth in this Letter Agreement, the GSA and/or the Promissory
 Note are not released in accordance with the foregoing.

&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
 Seller will not, and will procure that the Seller Releasors do not, make any claim or take
 any proceeding with respect to any matter released and discharged in this Letter Agreement
 that may result in any claim arising against the AdvEn Releasees or any one of them of the
 nature described in the foregoing.

&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) For
 greater certainty, the Seller agrees that on and after the closing of the Transaction and
 other than the contingent interest of the Seller in respect of certain of the Sold Shares
 arising in connection with the provisions of Section 3(a) of this Letter Agreement, neither
 the Seller nor the Seller Releasors will retain any interest in any of the securities of
 AdvEn and/or the Related Persons and will also not have any right to claim otherwise including,
 but not limited to, in connection with the spin-out transaction being contemplated by AdvEn
 with the Related Persons and in connection with the share exchange transaction being contemplated
 among Nano, AdvEn and the shareholders of AdvEn (other than the Seller) which transactions
 are more particularly outlined in a draft share exchange agreement circulated by AdvEn to
 the Seller prior to the date of this Letter Agreement (the **Share Exchange Transaction**).

&nbsp;&nbsp;&nbsp;&nbsp;6. **Release of the Buyer:** (a) On
 and after the Closing Date, AdvEn, Nano and the Related Persons (collectively, the **Releasor Group**) do hereby release, remise and forever discharge the Seller and its directors,
 officers, employees, agents, contractors, successors and assigns, as the case may be, (collectively,
 the **JiuHua Releasees**) from any and all action, causes of action, claims, suits, debts,
 proceedings, duties, covenants (whether implied or express), contracts, agreements, demands,
 damages, sums of money, grievances, executions, rights, obligations and liabilities of every
 kind and nature whatsoever, whether in law or in equity, which the Releasor Group or any
 director, officer, employee, agent, contractor, successor and assignee of the Releasor Group,
 as the case may be (collectively, the **Buyer Releasors**) ever had, now has, or in the
 future may have, arising from the Seller having been a shareholder of AdvEn or from any of
 the Seller Releasors having acted as a director or officer of AdvEn or any of the Related
 Persons and AdvEn hereby agrees on behalf of itself and the Buyer Releasors to indemnify,
 defend, save and hold harmless the JiuHua Releasees and to reimburse the JiuHua Releasees
 from and against any and all such claims arising in connection therewith. For greater certainty,
 the obligations and agreements of the Seller arising in connection with or related to this
 Letter Agreement are not released in accordance with the foregoing.

&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) AdvEn
 will not, and will procure that the Buyer Releasors do not, make any claim or take any proceeding
 with respect to any matter released and discharged in this Letter Agreement that may result
 in any claim arising against the JiuHua Releasees or any one of them of the nature described
 in the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;7. **Good Faith Negotiations:** By
 agreeing to this Letter Agreement, the Parties each covenant and agree to act reasonably,
 diligently, and in good faith to proceed expeditiously towards the closing of the Transaction
 as soon as possible and in any event in advance of the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;8. **Termination:** This
 Letter Agreement may only be terminated by the mutual written consent of the Parties. If
 this Letter Agreement is terminated by the mutual written consent of the Parties, the Letter
 Agreement will become void and of no further force and effect as against the Parties. The
 termination of this Letter Agreement will not relieve any Party from liability for damages
 actually incurred as a result of a breach of the terms of this Letter Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;9. **Costs:** Each
 Party will be responsible for paying the costs incurred by that Party in the course of preparing
 and negotiating this Letter Agreement and in completing the transaction contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;10. **Confidentiality:** The
 Parties each acknowledge and agree that, without the prior written consent of the other Party,
 they shall not provide this Letter Agreement to, nor discuss its terms, with any person or
 party other than its legal counsel, accountants, lenders, and financial advisors, provided
 that such persons are bound by obligations or duties of confidence.

&nbsp;&nbsp;&nbsp;&nbsp;11. **Governing Law and Forum:** Province
 of Alberta and the laws of Canada applicable therein.

&nbsp;&nbsp;&nbsp;&nbsp;12. **Further Assurances:** The
 Parties agree to promptly execute and deliver to the other Party, such additional documents,
 instruments and/or assurances as the other Party may reasonably request to give full effect
 to the terms of this Letter Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;13. **Independent Legal Advice:** The
 Parties each represent and warrant that they have each reviewed and fully understand
 the terms of this Letter Agreement and that they have each had sufficient opportunity to
 seek independent legal counsel in connection with entering into this Letter Agreement and
 that they have each either obtained independent legal counsel or have refused to obtain independent
 legal counsel on their own volition.

&nbsp;&nbsp;&nbsp;&nbsp;14. **Counterparts:** This
 Letter Agreement may be executed and delivered in one or more counterparts, including counterparts
 executed by electronic signature and delivered by DocuSign or PDF email attachment, each
 of which shall be deemed to be an original, and all of which together shall constitute one
 and the same instrument.

**[remainder of page intentionally left blank]**

This Letter Agreement coneys the Buyer's desire to move swiftly towards a timely conclusion of the Transaction. The Buyer requests that the Seller review this Letter Agreement and return a signed copy of this Letter Agreement not later than November 29, 2021 by 11:59 p.m. (Calgary time), failing which this Letter Agreement will be null and void unless extended by mutual agreement of the Parties.

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| Per: | /s/ Yanguang Yuan |
| Name: | Yanguang Yuan |
| Title: | Chief Executive Officer |

---

**THE UNDERSIGNED HEREBY ACKNOWLEDGES**, accepts and agrees to the terms and conditions set out above and confirms its full and binding authority to enter into this Letter Agreement this ___ day of November, 2021 and to be contractually bound by the provisions hereof.

---

| | |
|:---|:---|
| **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** | **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** |
| Per: | /s/ Jingjing Jiang |
| Name: | Jingjing Jiang |
| Title: | Director |

---

**Schedule "A"** 

**Form of Promissory Note** 

**PROMISSORY NOTE** 

**Principal Amount: CAD$500,000.00** 

**Effective Date: November __, 2021**

For value received, [●] (the **Borrower**), acknowledges itself indebted to and does hereby unconditionally promise to pay to, or to the order of JiuHua Investment Holdings Company Limited (the **Creditor**), the principal amount of CAD$500,000.00 (the **Principal Amount**) plus Interest (as defined below), on and subject to the terms hereof.

1. <u>Interest.</u> The Principal Amount shall bear interest in the manner more particularly described in
 Schedule "A" to this Promissory Note (the **Interest**). The Interest will
 be paid by the Borrower to the Creditor on a monthly basis until the Principal Amount is
 repaid in full.

2. <u>Application of Payments.</u> All payments by the Borrower to the Creditor shall be applied first to Interest
 that has accrued on unpaid Interest, second to accrued and unpaid Interest and third to the
 unpaid balance of the Principal Amount.

3. <u>Repayment.</u> The Principal Amount together with any accrued and unpaid Interest will be repaid by
 the Borrower to the Creditor in full on or prior to the date that is seventeen (17) weeks
 after the effective date of this Promissory Note (the **Maturity Date**). The Borrower
 will use its best efforts to cause the repayment of such indebtedness to be completed in
 accordance with the schedule set forth in Schedule "A" to this Promissory Note.

4. <u>Pre-Payment</u>.
 The Borrower will have the right to pay any or all amounts owing hereunder at any time prior
 to demand being made for repayment without notice, bonus or penalty.

5. <u>Default and Penalties</u>. The occurrence of any of the following will constitute an **Event of Default** hereunder: (a) default in the payment of the Principal Amount and the accrued
 and unpaid Interest in full by the Maturity Date; (b) if: (i) any proceedings are commenced
 by the Borrower under applicable bankruptcy or insolvency legislation (including a proposal
 or notice of intention to commence proceedings; (ii) the Borrower commits an act of bankruptcy;
 (iii) the Borrower becomes insolvent or bankrupt or makes an authorized assignment pursuant
 to applicable bankruptcy or insolvency legislation; or (iv) a bankruptcy petition is filed
 by or presented against the Borrower and remains undischarged or unstayed for a period of
 30 days.

---

| | |
|:---|:---|
| 6. | <u>Consequences upon Event of Default.</u> Upon the occurrence of an Event of Default, the Principal Amount then outstanding plus all accrued and unpaid Interest shall be immediately due and payable and will be satisfied by the Borrower's deemed issuance to AdvEn Industries Inc. (**AdvEn**) of an irrevocable notice to cause a certain number of the 3,699,000 common shares held by the Borrower in the authorized capital of AdvEn (the **AdvEn Shares**) to be transferred back into the name of the Creditor effective as of the Maturity Date determined in accordance with the following formula: |
|  | A = B – (C/D) |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whereby:<br>|
|  | A = Number of AdvEn Shares to be transferred back from the Borrower to the Creditor |
|  | B = 3,699,000 (being the total number of AdvEn Shares sold by the Creditor to the Borrower) |

---

---

| |
|:---|
| C = Total amount of principal of the Promissory Note repaid by the Borrower to the Creditor as at the Maturity Date plus CAD$1,500,000.00 |
| D = CAD$0.54069 (being the deemed value of each AdvEn Share for the purposes of this Promissory Note). The obligations of the Borrower hereunder will also be secured by way of a general security agreement to be entered into between the Creditor and AdvEn subject to the subordination and postponement more particularly described in the letter agreement dated November __, 2021 between the Creditor and AdvEn. |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Waiver</u>.
 The Borrower hereby waives presentment for payment, notice of non-payment, protest and notice
 of protest and any other condition precedent to action against it for the payment of this
 Promissory Note. The failure of the Creditor to exercise any of the Creditor's rights
 hereunder in any instance shall not constitute a waiver thereof in that or any other instance.

8. <u>Assignment.</u> Neither party may assign any or all of its obligations hereunder without the prior written
 consent of the other party.

9. <u>Enurement</u>.
 This Promissory Note will be binding upon and shall enure to the benefit of the parties hereto
 and their respective successors and permitted assigns.

10. <u>Severability</u>.
 If any provision of this Promissory Note is determined to be invalid or unenforceable in
 whole or in part, such invalidity or unenforceability shall attach only to such provision
 or part thereof and the remaining part of such provision and all other provisions hereof
 shall continue in full force and effect. To the extent permitted by applicable law the parties
 hereby waive any provision of law that renders any provision hereof prohibited or unenforceable
 in any respect.

11. <u>Governing Law and Attornment</u>. This promissory note shall be governed by and construed in accordance
 with the laws of the Province of Alberta and the laws of Canada applicable therein. The parties
 hereby attorn and submit to the non-exclusive jurisdiction of the courts of the Province
 of Alberta.

Per: 

Name: 

Position: 

---

| | |
|:---|:---|
| **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** | **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** |
| Per: | |
| Name: | Jingjing Jiang |
| Position: | Director |

---

**Schedule "A"** 

**Repayment Schedule** 

<u>Principal Amount Repayment</u>

---

| | | |
|:---|:---|:---|
| **Payment Date** | **Amount of Principal Paid** | **Remaining Principal** |
| On or prior to the date that is nine (9) weeks after the effective date of this Promissory Note | CAD$250,000.00 | CAD$250,000.00 |
| On or prior to the date that is seventeen (17) weeks after the effective date of this Promissory Note (the Maturity Date) | CAD$250,000.00 | Nil |

---

<u>Interest Repayment</u>

---

| | |
|:---|:---|
| **Payment Date** | **Amount of Interest Payable** |
| On or prior to the date that is seventeen (17) weeks after the effective date of this Promissory Note | CAD$50,000.00 |

---

**<u>ASSIGNMENT AND INDEMNITY AGREEMENT</u>**

THIS AGREEMENT made as of the 24 day of December, 2021.

AMONG:

**ADVENI NDUSTRIESI NC.**, a corporation incorporated under the laws of the Province of Alberta (the **Assignor**)

- and -

The parties listed under the heading "Buyer" in Schedule "A" hereto (hereinafter collectively referred to as the **Buyers**)

**WHEREAS**, the Assignor is a party to or is proposing to become a party to a share purchase agreement in substantially the form attached to this Agreement at Schedule "B" (the **Letter Agreement**) pursuant to which the Assignor is required to purchase 3,699,000 common shares in the authorized capital of the Assignor (the **Sold Shares**) from JiuHua Investment Holdings Company Limited (the **Seller**) for consideration of a cash payment of CAD$1,500,000 (the **Cash Payment**) and the delivery of a promissory note in the principal amount of CAD$500,000 (the **Promissory Note**);

**AND WHEREAS**, pursuant to the terms of the Letter Agreement, the Assignor is permitted to assign the obligations of the Assignor thereunder to an assignee of the Assignor;

**AND WHEREAS** Canadian Nexus Team Ventures Corp. (**Buyer 1**) has agreed to pay a lump sum amount of CAD$1,000,000 to the Seller on the date of closing of the Letter Agreement (the **Closing Date**) in exchange for 1,849,500 of the Sold Shares to be registered in the name of Buyer 1 (the **Buyer 1 Obligations**);

**AND WHEREAS** Ataraxy Holdings Corp. (**Buyer 2**) has agreed to pay a lump sum amount of CAD$500,000 to the Seller on the Closing Date and to execute and deliver the Promissory Note to the Seller and to fulfill all obligations of Buyer 2 thereunder in exchange for 1,849,500 of the Sold Shares to be registered in the name of Buyer 2 (the **Buyer 2 Obligations**) subject to a securities pledge agreement to be entered into among Arni Johannson, Buyer 2 and 1367054 Alberta Ltd.

**AND WHEREAS**, the Buyers wish to assume any and all of the obligations of the Assignor set forth in the Letter Agreement (other than the obligation of the Assignor to deliver a general security agreement of the Assignor to the Seller as more particularly described in Section 3(c) of the Letter Agreement (the **GSA Provision**) and other than the interest payable in the amount of CAD$50,000 (the **Interest**) as more particularly described in the promissory note to be delivered in connection with the Letter Agreement (the **Promissory Note**)) and wish to provide the Assignor with a full indemnity and release in connection with any and all claims suffered by the Assignor due to the default of the Buyers of the terms of the Letter Agreement;

**NOW THEREFORE**, in consideration of the premises and mutual covenants and agreements hereinafter set forth and contained, the parties hereto mutually covenant and agree as follows.

1. This
 Assignment and Indemnity Agreement shall be deemed to become effective as at the effective
 date of the Letter Agreement (the **Effective Date**) provided however that if for any
 reason the Letter Agreement is not executed by the Assignor and the Seller, this Assignment
 and Indemnity Agreement shall be of no force and effect.

2. As
 at the Effective Date, the Assignor hereby assigns, transfers and conveys the Letter Agreement
 unto the Buyers, together with all rights, covenants, agreements and other terms, benefits
 and advantages therefrom other than the GSA Provision and the Interest payable in connection
 with the Promissory Note, to have and to hold the same unto the Buyers for its sole use and
 benefit absolutely.

3. As
 at the Effective Date, the Buyers hereby accept the within assignment, transfer and conveyance
 of the Letter Agreement and covenant and agree that, from and after the Effective Date, they
 shall and will at all times be bound by, observe, perform and fulfill each and every covenant,
 agreement, term, condition and stipulation in the Letter Agreement other than the GSA Provision
 and the Interest payable in connection with the Promissory Note, as if the Buyers had been
 originally named as a party to the Letter Agreement in the place and stead of the Assignor,
 including, but not limited to, the execution and delivery of the Promissory Note by Buyer
 2 to the Seller on or before the Closing Date (collectively, the **Assumed Obligations**).
 For greater certainty, the Assignor agrees to pay an amount equal to the Interest to Buyer

4. Each
 of the Buyers, by their execution hereof, do hereby agree, effective as of the Effective
 Date and to the extent of the Assumed Obligations, to fully indemnify, release, remise and
 forever discharge the Assignor and its affiliates together with each of their respective
 directors, officers, employees, agents, contractors, successors and assigns, as the case
 may be, (collectively, the **AdvEn Releasees**) from any and all action, causes of action,
 claims, suits, debts, proceedings, duties, covenants (whether implied or express), contracts,
 agreements, demands, damages, sums of money, grievances, executions, rights, obligations
 and liabilities of every kind and nature whatsoever, whether in law or in equity (each a **Claim**), which the AdvEn Releasees or any one of them incur, suffer, and/or are subjected
 to arising from or related to the Letter Agreement, including, but not limited to, a Claim
 of the Seller against the Assignor in connection with the GSA Provision or under the general
 security agreement granted by the Assignor to the Seller in connection with the GSA Provision
 provided that such indemnity and release will apply to each of Buyer 1 and/or Buyer 2 in
 accordance with each of their respective liabilities to the extent arising from, related
 to or caused by a breach of the Buyer 1 Obligations and/or the Buyer 2 Obligations, respectively.

5. The
 Buyers agree not to make any Claim with respect to any matter indemnified, released and discharged
 in this Assignment and Indemnity Agreement that may result in any Claim arising against the
 AdvEn Releasees or any one of them of the nature described in the foregoing and will indemnify
 the AdvEn Releasees in connection with any such Claim.

6. The
 Buyers covenant and agree with the Assignor that they will, from time to time and at all
 times hereinafter, at the request of the Assignor execute such further assurances and do
 all such further acts as may be reasonably required for the purpose of vesting the Letter
 Agreement and the Assumed Obligations with the Buyers.

7. This
 Assignment and Indemnity Agreement shall, in all respects, be interpreted and construed in
 accordance with the laws of the Province of Alberta, and the parties hereby attorn to the
 jurisdiction of the courts of the Province of Alberta and all courts of appeal therefrom.

8. This
 Assignment and Indemnity Agreement shall enure to the benefit of and be binding upon the
 parties hereto and their respective successors and assigns.

9. This
 Assignment and Indemnity Agreement may be executed in as many counterparts as are necessary
 and, when each party has executed a counterpart, all counterparts together shall constitute
 one agreement and a signed counterpart delivered by electronic means shall be considered
 as valid as an original counterpart.

[*Signature page follows.*]

**IN WITNESS WHEREOF** the parties have executed this Assignment and Indemnity Agreement with effect as at the Effective Date.

---

| | | |
|:---|:---|:---|
| **Assignor:** | **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
|  | Per: | /s/ Yanguang Yuan |
|  |  | Name: Yanguang Yuan |
|  |  | Title: Chief Executive Officer |

---

---

| | | |
|:---|:---|:---|
| **Buyer:** | **CANADIAN NEXUS TEAM VENTURES CORP.** | **CANADIAN NEXUS TEAM VENTURES CORP.** |
|  | Per: | /s/ Arni Johannson |
|  |  | Name: Arni Johannson |
|  |  | Title: Director |

---

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| Per: | /s/ Arni Johannson |
|  | Name: Arni Johannson |
|  | Title: Director |

---

**<u>Schedule "A"</u>**

Attached and made part of an Assignment and Indemnity Agreement among AdvEn Industries Inc. and the party or parties set out in this Schedule "A".

● Canadian Nexus Team Ventures Corp. (**Buyer 1**)

● Ataraxy Holdings Corp. (**Buyer 2**)

**<u>Schedule "B"</u>**

Form of Share Purchase Agreement Between AdvEn Industries Inc. and JiuHua Investment Holdings Company Limited

**PROMISSORY NOTE** 

For value received, the undersigned Ataraxy Holdings Corp. and Arni Johannson (jointly and severally the "**Debtor"**), acknowledge that the Debtor is indebted to and does hereby unconditionally promise to pay to, or to the order of, 1367054 Alberta Ltd. (the "**Creditor"**), the principal amount of $500,000.00 (the "**Principal Amount"**) in lawful money of Canada, as follows:

1. <u>Maturity.</u> Unless otherwise consented to by the Creditor in writing to the Debtor, the Principal
 Amount shall be paid in full not later that February 22, 2022 (the "**Maturity Date"**).
 Notwithstanding the foregoing, the Debtor hereby agree to use best efforts to ensure that
 the Principal Amount is paid in full prior to the Maturity Date.

2. <u>Interest.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Principal Amount shall not bear interest on or before the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
 the Principal Amount is not repaid in full on the Maturity Date, then the Principal Amount
 will bear interest at the rate of 10% per annum from and after the Maturity Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Interest
 will be calculated and accrued based on the simple interest method on the basis of a calendar
 year of 12 months. All payments of interest to be made hereunder will be made without allowance
 or deduction for deemed re-investment or otherwise, after maturity and both before and after
 any default or judgment or both, until payment thereof, and interest will accrue on any unpaid
 principal balance.

3. <u>Application of Payments.</u> All payments by the Debtor to the Creditor hereunder shall be applied first
 to accrued and unpaid interest (if any) and second to the unpaid balance of the Principal
 Amount.

4. <u>Pre-Payment</u>.
 The Debtor shall have the right to pay any or all amounts owing hereunder at any time prior
 to the Maturity Date without notice, bonus or penalty.

5. <u>Type and Place of Payment</u>. All amounts payable hereunder by the Debtor, shall be made or delivered
 to the Creditor via certified cheque, bank draft, electronic funds transfer or such other
 means as may be acceptable to the Creditor, at #109, 2770 – 3<sup>rd</sup> Avenue NE,
 Calgary, Alberta, Canada T2A 2L5. If any payment to be made hereunder shall be due on a Saturday,
 Sunday or a public or bank holiday or the equivalent for banks generally under the laws of
 the Province of Alberta (any other day being a **Business Day**), such payment may be
 made on the next succeeding Business Day.

6. <u>Default and Penalties.</u> The occurrence of any of the following shall constitute an **Event of Default** hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) default
 in the payment of any amount in accordance with the terms hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) failure
 by the Debtor to observe or comply with any affirmative or negative covenant, condition,
 term or provision set out in this promissory note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any
 default with respect to any of the covenants, warranties and/or conditions which form part
 of the credit documents with any other creditor of the Debtor and such default is not waived
 or cured within the applicable cure period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) if:
 (I) any proceedings are commenced by the Debtor under applicable bankruptcy or insolvency
 legislation (including a proposal or notice of intention to commence proceedings); (ii) the
 Debtor commits an act of bankruptcy; (iii) the Debtor becomes insolvent or bankrupt or makes
 an authorized assignment pursuant to applicable bankruptcy or insolvency legislation;
 or (iv) a bankruptcy petition is filed by or presented against the Debtor and remains undischarged
 or unstayed for a period of 30 days.

Upon the occurrence of an Event of Default, the Principal Amount then outstanding plus any and all accrued and unpaid interest, shall be immediately due and payable.

7. <u>Waiver.</u> The Debtor hereby waives presentment for payment, notice of non-payment, protest and
 notice of protest and any other condition precedent to action against it for the payment
 of this promissory note. The failure of the Creditor to exercise any of the Creditor's
 rights hereunder in any instance shall not constitute a waiver thereof in that or any other
 instance.

8. <u>Confidentiality</u>.
 The Creditor acknowledges that the terms and conditions of this promissory note and any document
 or agreement delivered or entered into in accordance with this promissory note, are private
 and confidential and therefore agrees not to divulge or disclose, directly or indirectly,
 the terms, conditions and/or provisions of this promissory note or any document or agreement
 delivered or entered into in accordance with this promissory note, to any person except for
 its legal and financial advisors provided that they maintain the confidentiality thereof,
 or unless otherwise required to do so by law.

9. <u>Notice.</u> Any notice or written communication given to the Debtor pursuant to or in connection
 with this promissory note shall be in writing and shall be given by delivering the same personally
 or by prepaid courier, prepaid registered mail, facsimile, or "PDF" email attachment
 addressed to the Debtor at the following address:

**Ataraxy Holdings Corp.**

c/o Arni Johannson

600 - 1819 Bellevue Avenue

West Vancouver, British Columbia V7V 1B2

Email: arni@canadiannexus.com

Any such notice shall be conclusively deemed to have been given and received on the day of actual receipt by the Debtor or, if given by prepaid registered or certified mail, on the fifth day following the mailing date (absent a general disruption in postal service).

10. <u>Expenses</u>.
 All costs, expenses and expenditures relating to this promissory note including, without
 limitation, the reasonable legal costs incurred by the Creditor in enforcing this promissory
 note as a result of any default by the Debtor will be added to the Principal Amount then
 outstanding and will immediately be paid by the Debtor.

11. <u>Security</u>.
 Without limitation to the rights and remedies available to the Creditor at law or in equity
 in connection with the terms of this promissory note, the Debtor acknowledges and agrees
 that the performance of the Debtor of their obligations under this promissory note will also
 be secured by a securities pledge agreement dated December 24, 2021 to be entered into by
 the Debtor in favour of the Creditor.

12. <u>Assignment.</u> The Creditor may assign or transfer any or all of its rights, title, duties or interest
 in, to and under this promissory note to any person upon providing written notice of such
 assignment or transfer to the Debtor. The Debtor shall not assign any or all of its obligations
 hereunder without the prior written consent of the Creditor.

13. <u>Enurement</u>.
 This promissory note shall be binding upon the Debtor and its permitted successors and assigns
 and shall enure to the benefit of the Creditor and its permitted successors and assigns.

14. <u>Severability.</u> If any provision of this promissory note is determined to be invalid or unenforceable
 in whole or in part, such invalidity or unenforceability shall attach only to such provision
 or part thereof and the remaining part of such provision and all other provisions hereof
 shall continue in full force and effect. To the extent permitted by applicable law the Debtor
 hereby waives any provision of law that renders any provision hereof prohibited or unenforceable
 in any respect.

15. <u>Governing Law</u>. This promissory note shall be governed by and construed in accordance with the laws
 of the Province of Alberta, without regard to principles of conflicts of law, and the federal
 laws of Canada applicable therein.

16. <u>Entire Agreement</u>. This promissory note contains the entire agreement of the parties with respect
 to the subject matter hereof and supersedes all other understandings and agreements, oral
 or written, with respect to the subject matter hereof.

**[remainder of page intentionally left blank]** 

**DATED** effective December 24, 2021.

**DEBTOR**

---

| | | |
|:---|:---|:---|
| | /s/ Arni johannson | /s/ Arni johannson |
| WITNESS | **ARNI JOHANNSON** | **ARNI JOHANNSON** |
|  | **ATARAXY HOLDINGS CORP.** | **ATARAXY HOLDINGS CORP.** |
|  | Per: | /s/ Yanguang Yuan |
|  |  | Authorized signatory |

---

**CREDITOR**

---

| | |
|:---|:---|
| **1367054 ALBERTA LTD.** | **1367054 ALBERTA LTD.** |
| Per: | /s/ Yanguang Yuan |
|  | Yanguang Yuan |

---

**Schedule "A"** 

**Repayment Schedule** 

<u>Principal Amount Repayment</u>

---

| | | |
|:---|:---|:---|
| **Payment Date** | **Amount of Principal Paid** | **Remaining Principal** |
| On or prior to the date that is nine (9) weeks after the effective date of this Promissory Note | CAD$250,000.00 | CAD$250,000.00 |
| On or prior to the date that is seventeen (17) weeks after the effective date of this Promissory Note (the Maturity Date) | CAD$250,000.00 | Nil |

---

<u>Interest Repayment</u>

---

| | |
|:---|:---|
| **Payment Date** | **Amount of Interest Payable** |
| On or prior to the date that is seventeen (17) weeks after the effective date of this Promissory Note | CAD$50,000.00 |

---

**SECURITIES PLEDGE AGREEMENT** 

This Securities Pledge Agreement (this **Agreement**) is dated effective December 24, 2021 among Arni Johannson (the **Principal**), Ataraxy Holdings Corp. (the **Pledgor**) and 1367054 Alberta Ltd. (the **Pledgee**). For the purposes of this Agreement, the term **Parties** shall mean the Principal, the Pledgor, and the Pledgee, and the term **Party** shall mean either one of them as the context requires.

**RECITALS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The
 Pledgee has loaned CDN$500,000 to the Principal and the Pledgor pursuant to and in accordance
 with a promissory note dated December 24, 2021 (the **Promissory Note**) between the Pledgee,
 the Principal and the Pledgor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The
 Pledgor is the registered and beneficial owner of 1,191,991 common shares in the authorized
 capital of AdvEn Industries Inc. (calculated on a post-consolidation basis) (the **AdvEn Shares**), 2,384,279.48 Class A common shares in the authorized capital of Tangold Inc.
 (the **Tangold Shares**) and 2,384,200 Class A common shares in the authorized capital
 of AdvEn Bitumen Innovation Inc. (the **Bitumen Shares**) (collectively, the **Pledged Shares**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Pledgor
 has agreed to pledge in favour of the Pledgee the Investment Collateral (as defined below)
 as security for the payment and performance of the Obligations (as defined below), upon the
 terms and conditions set out in this Agreement.

**NOW THEREFORE,** in consideration of the respective covenants and agreements set forth in this Agreement and other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the Parties covenant and agree as follows:

1. DEFINITIONS

In this Agreement, terms defined in the description of the parties or body hereof shall have those meanings, and:

(a) the
 terms **certificated security**, **collateral**, **entitlement holder**, **financial asset**, **instruments**, **intangibles**, **investment property**, **money**, **security entitlement**, **securities intermediary** and **uncertificated security** have the meanings given to them under the PPSA (as hereinafter defined); and

(b) In
 this Agreement:

**Investment Collateral** means the Pledged Share, including all shares, options, warrants, bonds, debentures, and other instruments, all present and future options and warrants, in each case issued to Pledgor in connection therewith and all other rights and entitlements arising therefrom or related thereto, and including without limitation all substitutions for any of the foregoing and dividends derived therefrom or payable in connection therewith. For greater certainty, in the event that the AdvEn Shares are exchanged for shares in the authorized capital of Nano Innovations Inc., the Investment Collateral will be deemed to include all of the securities which are exchanged for the AdvEn Shares.

**PPSA** means the *Personal Property Security Act* (Alberta), as amended from time to time and any legislation substituted therefore and any amendments thereto;

**Obligations** means all indebtedness, liabilities, and obligations, whether present or future, direct or indirect, absolute or contingent, matured or not, extended or renewed, at any time owing by the Principal and/or Pledgor to the Pledgee pursuant to or in connection with the Promissory Note, and all interest, fees, legal and other costs, charges and expenses relating to any of the foregoing; and **Obligation** means any one of such Obligations.

2. PLEDGE
 AND GRANT OF SECURITY INTEREST

As collateral security for the prompt and complete payment and performance when due of the Obligations, Pledgor does hereby mortgage, pledge, charge, assign, transfer and hypothecate to and in favour of and deposit with the Pledgee and grant to it, a continuing first, fixed and specific security interest, hypothec, mortgage, pledge and charge, in and to all of Pledgor's right, title and interest, whether now existing or hereafter arising, in all Investment Collateral, instruments, money and general intangibles of, relating to or arising from the following property (collectively the **Pledged Collateral**):

(a) the
 Investment Collateral held by Pledgor and any shares and other Investment Collateral in the
 capital of AdvEn, Tangold and/or Bitumen hereafter acquired (all of the foregoing being collectively
 referred to as the **Pledged Securities**);

(b) all
 present and after acquired dividends (including cash dividends), return of capital, distributions,
 or other property, Investment Collateral or instruments issued in respect of or in exchange
 for the Pledged Securities, whether by way of dividends, distributions, stock dividends,
 recapitalizations, mergers, consolidations, split-ups, combinations or exchanges of shares,
 or otherwise;

(c) all
 present and after acquired rights, interests and claims relating to or arising from the Pledged
 Securities, including without limitation all rights to receive notices of and attend meetings
 of shareholders, unitholders or partners (as applicable) and all present and future rights
 of Pledgor to vote the Pledged Securities, subject to <u>Section 4(a)</u> and <u>Section 3</u>; and

(d) subject
 to <u>Section 8</u>, all direct and indirect proceeds of the foregoing.

The parties acknowledge that: (i) value has been given; (ii) Pledgor has rights in the Pledged Collateral existing on the date hereof and the power to transfer rights in the Pledged Collateral to the Pledgee; (iii) the parties have not agreed to postpone the time for attachment of the security interest created hereby; (iv) the security interest created in this Agreement shall immediately attach to all Pledged Collateral hereafter acquired as soon as Pledgor acquires rights thereto or therein; and (v) the Principal shall use best efforts to cause Pledgor to perform its obligations in accordance with the terms of this Agreement and the Promissory Note.

3. VOTING
 AND DISTRIBUTION RIGHTS

(a) Provided
 no Default or Event of Default, as hereinafter defined, has occurred and is continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Pledgor
 may exercise all rights to vote and to exercise all rights of conversion or retraction or
 other similar rights with respect to any Pledged Collateral provided that, upon exercise
 of any conversion or retraction right, any additional Pledged Collateral resulting therefrom
 shall be paid or delivered to the Pledgee forthwith;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Pledgee shall grant, or shall cause its nominee to grant, to Pledgor or its respective nominees
 a proxy to vote and to exercise all rights of conversion or retraction or other similar rights
 with respect to any Pledged Collateral registered in the name of the Pledgee or its nominee,
 for the purpose of enabling Pledgor to exercise all voting and other rights that it is entitled
 to exercise pursuant to <u>Section 3(a)(i)</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Pledgor
 shall be entitled to receive all dividends or distributions (whether paid or distributed
 in cash, securities or other property) and interest declared and paid or distributed in respect
 of the Pledged Collateral, and such dividends, distributions and interest shall continue
 to be subject to the security interest, hypothec, mortgage, pledge and charge hereby constituted.

(b) Upon
 the occurrence of and during the continuation of a Default or an Event of Default:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no
 proxy granted by the Pledgee or its nominee pursuant to <u>Section 3(a)(ii)</u> shall thereafter
 be effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Pledgor
 shall have no rights to vote or take any other action with respect to any Pledged Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Pledgee shall have the right (but shall not be obligated), to the maximum extent permitted
 by law, to exercise all voting, consensual and other powers of ownership pertaining to the
 Pledged Securities as if the Pledgee were the sole and absolute owner thereof (and Pledgor
 agrees to take all such action as may be appropriate to give effect to such right); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Pledgor
 shall cease to be entitled to receive any dividends, distributions or interest, whether declared
 or payable before or after the occurrence of the Default or Event of Default, in respect
 of the Pledged Collateral, and any such dividends, distributions or interest received after
 the occurrence of the Default or Event of Default shall be received in trust for the Pledgee.

4. DELIVERY
 AND REGISTRATION OF PLEDGED SECURITIES

(a) Pledgor
 shall, as soon as reasonably practicable after execution of this Agreement, deliver to the
 Pledgee all of the certificates representing the Pledged Securities, registered in the name
 of Pledgor, together with a securities transfer power of attorney in the form attached as <u>Schedule A</u>;

(b) Regarding
 any and all Pledged Collateral that is a certificated security, an uncertificated security,
 or a security entitlement, Pledgor shall, or shall cause the issuer of such Pledged Collateral
 to, or shall cause the securities intermediary that holds such Pledged Collateral to, take
 all steps as are necessary to give exclusive control over such Pledged Collateral to the
 Pledgee on terms and conditions satisfactory to the Pledgee;

(c) At
 the request of the Pledgee after and during the continuance of a Default or an Event of Default,
 (i) Pledgor shall cause any Pledged Collateral that is in a registered or registrable form
 to be registered or re-registered in the name of the Pledgee, and the Pledgee is appointed
 the irrevocable attorney (coupled with an interest) of Pledgor with full power of substitution
 to cause any or all of the Pledged Collateral to be registered in the name of the Pledgee
 or its nominee, (ii) Pledgor shall cause such securities intermediary that holds any Pledged
 Collateral that is a security entitlement to record the Pledgee as the entitlement holder
 of such Pledged Collateral, and/or (iii) Pledgor shall (A) cause a security certificate to
 be issued for any Pledged Collateral that is in the form of an uncertificated security or
 a security entitlement, (B) endorse such security certificate in blank, (C) deliver such
 security certificate to the Pledgee, and (D) take all other steps necessary to give exclusive
 control over such certificated security to the Pledgee; and

(d) At
 any time and from time to time, Pledgor shall deliver, and the Principal shall cause such
 Parties to deliver, to the Pledgee additional Pledged Securities, accompanied by a written
 order of Pledgor as owner thereof, identifying the additional Pledged Securities and stating
 that the same are to form part of the security hereunder. Any additional Pledged Securities
 delivered by Pledgor to the Pledgee under any provisions of this Agreement shall become and
 be subject to the provisions of this Agreement.

5. REPRESENTATIONS
 AND WARRANTIES

The Principal and Pledgor hereby jointly and severally represent and warrant to the Pledgee as follows:

(a) **Pledged Securities:** the Pledged Securities have been duly authorized, are validly issued, and
 are fully paid and non-assessable, and Pledgor is the registered, legal and beneficial owner
 of the Pledged Securities which are owned free and clear of any and all encumbrances, and
 Pledgor has full right, power and authority to pledge and to create a security interest in
 and to each and every of the Pledged Securities.

(b) **Security:** the pledge of the Pledged Collateral creates a good and valid security interest, hypothec,
 pledge, mortgage and charge in the Pledged Collateral, which security interest, hypothec,
 pledge, mortgage and charge is a perfected and first priority security interest, securing
 the payment of the Obligations and the obligations hereunder.

6. COVENANTS

The Principal and Pledgor hereby covenant and agree with the Pledgee that:

(a) any
 substituted Pledged Collateral shall be held by the Pledgee subject to the same terms and
 conditions and with the same powers and authorities, as are declared and conferred. The Pledgee
 shall not be required to surrender any of the Pledged Collateral until all of the Obligations
 have been fully and finally paid and satisfied; and

(b) the
 Pledgee shall have the right to but shall not be bound nor required to exercise any option
 or right which the holder of any of the Pledged Collateral may at any time have, provided,
 however, if the Pledgee chooses to exercise any such option any advance made for such purposes
 shall be added to the Obligations and all the provisions hereof shall apply thereto.

7. CONTINUED
 PERFECTION OF SECURITY INTEREST AND HYPOTHEC

Pledgor agrees that it will not take any actions or fail to perform any of their duties or obligations under this Agreement so that after giving effect to such action or inaction the Pledgee will not then, or with the passage of time, cease to have a first priority perfected security interest, hypothec, pledge, mortgage and charge in any of the Pledged Collateral.

Pledgor agrees that from time to time, at the expense of Pledgor, Pledgor will promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary, or that the Pledgee may reasonably request, in order to perfect and protect the pledge, hypothecation and security interest granted or purported to be granted hereby or to enable the Pledgee to exercise and enforce its rights and remedies hereunder with respect to any Pledged Collateral.

Pledgor hereby further authorizes the Pledgee to file at Pledgor's cost and expense one or more financing or financing change statements, and amendments thereto, relative to all or any part of the Pledged Collateral without the signature of Pledgor where permitted by applicable laws.

8. EVENTS
 OF DEFAULT AND REMEDIES

(a) Each
 and every one of the following events or conditions shall, for the purposes of this Agreement,
 constitute an **Event of Default** and any event or circumstance that exists which, with
 the giving of notice, the passage of time or both, would constitute an Event of Default,
 shall constitute a **Default** hereunder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 failure by Pledgor and/or Principal to perform their covenants and obligations in this Agreement
 or the Promissory Note;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Principal or Pledgor fails to make any payment of any amount forming part of the Obligations,
 as required under any agreement made with the Pledgee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) proceedings
 are taken to enforce any encumbrance on any of the property or assets of Pledgor or the Principal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) The
 Principal and/or Pledgor is adjudged bankrupt or becomes insolvent, a petition in bankruptcy
 receiving order is filed or made against the Principal and/or Pledgor, or proceedings of
 any type are instituted in any jurisdiction in respect of the alleged insolvency or bankruptcy
 of the Principal and/or Pledgor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the
 Principal and/or Pledgor default in payment or in the observance or performance of its obligations
 or liabilities to third parties who, as a result of such default, may acquire the right to
 take proceedings against the Principal and/or Pledgor or the collateral in which the Pledgee
 has in interest which might adversely affect the security of the Pledgee or its ability to
 recover payment of the Obligations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the
 Principal and/or Pledgor sells, attempts to sell, parts with possession of or abandons any
 material part of the collateral in which the Pledgee has an interest, or commits or threatens
 to commit any act of bankruptcy, or the Pledgee deems the collateral in which it has an interest
 is in danger of being sold; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) a
 material loss, theft, damage, destruction or encumbrance to or of any of the collateral in
 which the Pledgee has an interest or the making of any levy, seizure or attachment in relation
 to any of it.

(b) During
 the period during which a Default or an Event of Default shall have occurred and be continuing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Pledgee shall have all of the rights and remedies with respect to the Pledged Collateral
 of a secured party under the PPSA (whether or not said PPSA is in effect in the jurisdiction
 where the rights and remedies are asserted) and such additional rights and remedies to which
 a secured party is entitled under the laws in effect in any jurisdiction where any rights
 and remedies hereunder may be asserted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Pledgee in its discretion may, in its name or in the name of Pledgor or otherwise, demand,
 sue for, collect or receive any money or property at any time payable or receivable on account
 of or in exchange for any of the Pledged Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Pledgee may, upon prior written notice to Pledgor of the time and place, with respect to
 the Pledged Collateral or any part thereof that shall then be or shall thereafter come into
 the possession, custody or control of the Pledgee or any of its assignees, sell, assign or
 otherwise dispose of all or any part of such Pledged Collateral, at such place or places
 as the Pledgee deems best, and for cash or for credit or for future delivery (without thereby
 assuming any credit risk), at public or private sale, without demand of performance or notice
 of intention to effect any such disposition or of the time or place thereof (except such
 notice as is required above or by applicable statute and cannot be waived), and the Pledgee,
 its assignees hereunder or anyone else may be the purchaser, assignee or recipient of any
 or all of the Pledged Collateral so disposed of at any public sale (or, to the extent permitted
 by law, at any private sale) and thereafter hold the same absolutely, free from any claim
 or right of whatsoever kind, including any right or equity of redemption (statutory or otherwise),
 of Pledgor, any such demand, notice and right or equity being hereby expressly waived and
 released. The Pledgee may, without notice or publication, adjourn any public or private sale
 or cause the same to be adjourned from time
to time by announcement at the time and place fixed for the sale, and such sale may be made at any time or place to which the sale may
be so adjourned; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 Pledgee may directly or indirectly acquire or retain the Pledged Collateral as permitted
 by applicable laws;

(c) The
 records of the Pledgee as to the occurrence and continuation of a Default or an Event of
 Default shall be prima facie evidence of such Default or Event of Default;

(d) The
 Pledgee shall not be bound under any circumstances to realize upon any Pledged Collateral
 or allow any Pledged Collateral to be sold, and shall not be responsible for any loss occasioned
 by any sale or by the retention of or refusal to sell Pledged Collateral; nor shall the Pledgee
 be obliged to collect or see to the payment of interest, distributions or dividends thereon;

(e) The
 proceeds of any sale or disposition of the Pledged Collateral by the Pledgee may be applied
 upon such part of the Obligations, direct or indirect, as the Pledgee may see fit;

(f) After
 the occurrence and during the continuance of a Default or an Event of Default, the Pledgee
 may transfer all or any of the Pledged Collateral and may fill in all blanks in any transfers
 of stocks or certificates or any power of attorney or other documents delivered to it, and
 the Pledgee may delegate its powers and any subdelegate of the powers hereby given may exercise
 the same in the name and on behalf of Pledgor;

(g) At
 the request of the Pledgee, Pledgor will, at its own expense, execute all such transfers
 and documents as may be reasonably required, with all such powers of sale and other necessary
 powers as may be expedient for vesting in the Pledgee, or such person or nominee as it may
 appoint, all and every Pledged Collateral; and

(h) All
 reasonable costs and charges incurred by the Pledgee with reference to the Pledged Collateral
 or the realization thereof (including all reasonable legal costs on the basis as between
 a solicitor and his own client and court costs paid and also including expenses of taking
 possession of, protecting and realizing upon any property comprised in the Pledged Collateral)
 shall be added to the Obligations and shall be a first charge and security interest upon
 the monies received.

Pledgor recognizes that, by reason of certain prohibitions contained in applicable securities laws, the Pledgee may be compelled, with respect to any sale of all or any part of the Pledged Collateral, to limit purchasers to those who will agree, among other things, to acquire the Pledged Collateral for their own account, for investment and not with a view to the distribution or resale thereof. Pledgor acknowledges that any such private sales may be at prices and on terms less favourable to the Pledgee than those obtainable through a public sale without such restrictions, and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner and that the Pledgee shall have no obligation to engage in public sales, no obligation to ensure that the purchase price for the Pledged Collateral is the equal to the fair market value thereof and no obligation to delay the sale of any Pledged Collateral for any period of time.

9. POWER
OF ATTORNEY

Pledgor hereby appoints the Pledgee as attorney of Pledgor, with full authority in the place and stead of Pledgor and in the name of Pledgor or otherwise, from time to time in the Pledgee's discretion to take any and all actions authorized to be taken by the Pledgee under this Agreement or by applicable laws at any time after the occurrence and during the continuance of an Event of Default that the Pledgee, acting reasonably, may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation, to ask for, demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys due and to become due under or in connection with the Pledged Collateral, to receive, endorse, and collect any drafts or other instruments or documents in connection therewith, and to file any claims or take any action or institute any proceedings which the Pledgee may deem to be necessary or desirable for the collection thereof or to enforce compliance with the terms and conditions of any agreement made between the Pledgor and the Pledgee. Such appointment of the Pledgee as the Pledgor attorney is coupled with an interest and is irrevocable.

10. NON-MERGER

This Agreement shall be a continuing agreement and the Pledged Collateral is in addition to and not in substitution for any other security held by the Pledgee and the taking of a judgment or judgments under any of the covenants herein contained shall not operate as a merger of such covenants or suspend the fulfillment of, or affect the rights, remedies and powers of the Pledgee in respect of the Obligations or any Pledged Collateral held by the Pledgee hereunder. Neither the taking of any judgment nor the exercise of any power of sale shall operate to extinguish the liability of Pledgor and/or Principal to satisfy the Obligations. All claims, present or future, of Pledgor against any person liable upon or for payment of any of the Pledged Collateral are hereby assigned to the Pledgee.

11. EXHAUST
RECOURSES

It is further agreed that the Pledgee shall not be obliged to exhaust its recourses against the Pledgor or any other party or against any other security it may hold before realizing on or otherwise dealing with the Pledged Collateral. The Pledgee may realize on the Pledged Collateral in such manner as it considers desirable and it may grant time, renewals, extensions, indulgences, releases and discharges to, may take securities from and give the same and any and all existing Pledged Collateral up to, may abstain from taking securities from, or from perfecting securities of, may accept compositions from, and may otherwise deal with Pledgor and the Pledged Collateral, as the Pledgee may see fit, without prejudice to the rights of the Pledgee set out herein to hold, deal with and realize on the Pledged Collateral.

12. DEGREE
OF CARE

The Pledgee shall have no duty with respect to the Pledged Collateral other than to use reasonable care in the safe custody of the Pledged Collateral in its possession. The Pledgee shall not be liable for any loss or depreciation in the value of the Pledged Collateral.

13. LIABILITY
FOR OTHERS

The Pledgee shall not be responsible for or on account of any act or omission of any broker or similar agent employed by Pledgor to purchase or sell any stocks, bonds, shares or securities for the account of the Pledgor. In no event shall the Pledgee be responsible for or warrant title to any securities dealt in for Pledgor accounts.

14. REDELIVERY

When all of the Obligations have been satisfied to the Pledgee's satisfaction, the Pledgee will re-deliver the remaining Pledged Securities to the Pledgor, if any, or the proceeds of any sale of the Pledged Securities to the extent remaining, if any, after giving effect to the satisfaction of the Obligations in full in accordance with the terms of this Agreement.

15. GOVERNING
LAWS

This Agreement shall be subject to the laws of the Province of Alberta and the federal laws of Canada applicable and shall be construed and enforced in accordance with such laws. The Parties accept and irrevocably submit to the jurisdiction of the courts of Alberta and agree to be bound by any judgment thereof, without prejudice to the rights of the Pledgee to take proceedings in any other jurisdictions.

16. BINDING
EFFECT

This Agreement shall be binding upon the Principal, Pledgor and their successors and permitted assigns and shall enure to the benefit of the Pledgee and its respective successors and assigns. Pledgor nor Principal shall be permitted to assign any of its obligations hereunder without the prior written consent of the Pledgee. **Successors** shall include any corporation or company resulting from the amalgamation of one or more corporations or companies.

**17.** **AMENDMENTS; ETC.** 

No amendment or waiver of any provision of this Agreement nor consent to any departure by Pledgor therefrom shall in any event be effective unless the same shall be in writing and signed by the Principal, Pledgor and the Pledgee, and then such waiver or consent shall be effective only in the specific instance for the specific purpose for which given.

18. ADDRESSES
FOR NOTICES

(a) All
 notices required under this Agreement shall be in writing and provided by mail, registered
 mail, email, or courier to the parties at the addresses as follows:

To the Principal or Pledgor:

Arni Johannson

403B 850 Harbourside Drive

North Vancouver, British Columbia V7P 0A3

Email: arni@canadiannexus.com

To the Pledgee:

1367054 Alberta Ltd.

c/o Yanguang Yuan

#109, 2770 3rd Avenue NE

Calgary, Alberta T2A 2L5

Email: yanguang.yuan@adven-industries.com

(b) Any
 notice shall be deemed to have been received on the day on which it was so delivered, and
 if not a Business Day then on the Business Day next following the day of delivery. Any Party
 may at any time give notice in writing to the other Party of any change of address of the
 Party giving such notice and from and after giving such notice the address specified in such
 notice shall be deemed to be the address of such Party for the giving of notices under this
 Agreement. Until such notice of change of address is received, notice sent to the last address
 stipulated as provided herein shall be deemed to be effective, notwithstanding a subsequent
 change of address.

19. SEVERABILITY

Any provision hereof that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof and without affecting the validity or enforceability of any provision in any other jurisdiction.

20. HEADINGS

The headings herein are included for convenience of reference only and shall be ignored in the construction or interpretation hereof.

21. EXECUTION
IN COUNTERPARTS

This Agreement may be executed and delivered in one or more counterparts, including execution by electronic signature, and each counterpart execution page when so executed and delivered shall be deemed to be an original and such counterpart execution pages together shall constitute one and the same Agreement. Delivery by facsimile or PDF e-mail attachment shall be an accepted mode of delivery of such counterpart execution pages.

**[remainder of page intentionally left blank]**

**IN WITNESS WHEREOF** the Parties have duly executed this Agreement effective as of the date first written above.

---

| | | |
|:---|:---|:---|
| | /s/ **ARNI JOHANNSON** | /s/ **ARNI JOHANNSON** |
| Witness | **ARNI JOHANNSON** | **ARNI JOHANNSON** |
|  | **ATARAXY HOLDINGS CORP.** | **ATARAXY HOLDINGS CORP.** |
|  | Per: | /s/ Arni Johannson |
|  | Name: | Arni Johannson |
|  | Title: | Vice President |
|  | **1367054 ALBERTA LTD.** | **1367054 ALBERTA LTD.** |
|  | Per: | /s/ Yanguang Yuan |
|  | Name: | Yanguang Yuan |
|  | Title: | Director and Officer |

---

**SCHEDULE A**

**SECURITIES TRANSFER POWER OF ATTORNEY**

**DESCRIPTION OF SECURITIES**

[●] Class [●] Common Shares (the **Pledged Securities**) in the authorized capital of [●] (the **Corporation**) represented, in part, by share certificate number [●] of the Corporation.

FOR VALUE RECEIVED, the undersigned, pursuant to the Securities Pledge Agreement dated December 24, 2021 as amended, supplemented, modified, restated or replaced from time to time:

1. pledges, assigns and transfers unto 1367054 Alberta Ltd. the Pledged Securities standing
in the name of the undersigned on the books of the Issuer; and

2. irrevocably constitutes and appoints 1367054 Alberta Ltd. the attorney of the undersigned
to complete the foregoing transfer and/or any transfer on the transfer panel of the respective share certificates representing such Pledged
Securities and to transfer the said Pledged Securities on the books of the Corporation, with full power of substitution in the premises.

DATED effective December 24, 2021.

---

| | |
|:---|:---|
| **ATARAXY HOLDINGS CORP.** | **ATARAXY HOLDINGS CORP.** |
| Per: | /s/ Arni Johannson |
| Name: | Arni Johannson |
| Title: | Vice President |

---

**PROMISSORY NOTE**

**Principal Amount: CAD$500,000.00**

**Effective Date: December 24, 2021**

For value received, Ataraxy Holdings Corp. (the **Borrower**), acknowledges itself indebted to and does hereby unconditionally promise to pay to, or to the order of JiuHua Investment Holdings Company Limited (the **Creditor**), the principal amount of CAD$500,000.00 (the **Principal Amount**) plus Interest (as defined below), on and subject to the terms hereof.

1. <u>Interest.</u> The Principal Amount shall bear interest in the manner more particularly described in
Schedule "A" to this Promissory Note (the **Interest**). The Interest will be paid by the Borrower to the Creditor on a
monthly basis until the Principal Amount is repaid in full.

2. <u>Application of Payments.</u> All payments by the Borrower to the Creditor shall be applied first to
Interest that has accrued on unpaid Interest, second to accrued and unpaid Interest and third to the unpaid balance of the Principal Amount.

3. <u>Repayment.</u> The Principal Amount together with any accrued and unpaid Interest will be repaid by
the Borrower to the Creditor in full on or prior to the date that is seventeen (17) weeks after the effective date of this Promissory
Note (the **Maturity Date**). The Borrower will use its best efforts to cause the repayment of such indebtedness to be completed in
accordance with the schedule set forth in Schedule "A" to this Promissory Note.

4. <u>Pre-Payment</u>. The Borrower will have the right to pay any or all amounts owing hereunder at any
time prior to demand being made for repayment without notice, bonus or penalty.

5. <u>Default and Penalties</u>. The occurrence of any of the following will constitute an **Event of Default** hereunder: (a) default in the payment of the Principal Amount and the accrued and unpaid Interest in full by the Maturity Date; (b)
if: (i) any proceedings are commenced by the Borrower under applicable bankruptcy or insolvency legislation (including a proposal or notice
of intention to commence proceedings; (ii) the Borrower commits an act of bankruptcy; (iii) the Borrower becomes insolvent or bankrupt
or makes an authorized assignment pursuant to applicable bankruptcy or insolvency legislation; or (iv) a bankruptcy petition is filed
by or presented against the Borrower and remains undischarged or unstayed for a period of 30 days.

6. <u>Consequences upon Event of Default.</u> Upon the occurrence of an Event of Default, the Principal Amount
then outstanding plus all accrued and unpaid Interest shall be immediately due and payable and will be satisfied
by the Borrower's deemed issuance to AdvEn Industries Inc. (**AdvEn**) of an irrevocable notice to cause a certain number of
the 3,699,000 common shares held by the Borrower in the authorized capital of AdvEn (the **AdvEn Shares**) to be transferred back into
the name of the Creditor effective as of the Maturity Date determined in accordance with the following formula:

A = B – (C/D)

Whereby:

A = Number of AdvEn Shares to be transferred back from the Borrower to the Creditor

B = 3,699,000 (being the total number of AdvEn Shares sold by the Creditor to the Borrower)

C = Total amount of principal of the Promissory Note repaid by the Borrower to the Creditor as at the Maturity Date plus CAD$1,500,000.00

D = CAD$0.54069 (being the deemed value of each AdvEn Share for the purposes of this Promissory Note). The obligations of the Borrower hereunder will also be secured by way of a general security agreement to be entered into between the Creditor and AdvEn subject to the subordination and postponement more particularly described in the letter agreement dated November 26, 2021 between the Creditor and AdvEn.

7. <u>Waiver</u>. The Borrower hereby waives presentment for payment, notice of non-payment, protest and
notice of protest and any other condition precedent to action against it for the payment of this Promissory Note. The failure of the Creditor
to exercise any of the Creditor's rights hereunder in any instance shall not constitute a waiver thereof in that or any other instance.

8. <u>Assignment.</u> Neither party may assign any or all of its obligations hereunder without the prior
written consent of the other party.

9. <u>Enurement</u>. This Promissory Note will be binding upon and shall enure to the benefit of the parties
hereto and their respective successors and permitted assigns.

10. <u>Severability</u>. If any provision of this Promissory Note is determined to be invalid or unenforceable
in whole or in part, such invalidity or unenforceability shall attach only to such provision or part thereof and the remaining part of
such provision and all other provisions hereof shall continue in full force and effect. To the extent permitted by applicable law the
parties hereby waive any provision of law that renders any provision hereof prohibited or unenforceable in any respect.

11. <u>Governing Law and Attornment</u>. This promissory note shall be governed by and construed in accordance
with the laws of the Province of Alberta and the laws of Canada applicable therein. The parties hereby attorn and submit to the non-exclusive
jurisdiction of the courts of the Province of Alberta.

**[remainder of page intentionally left blank]**

---

| | | |
|:---|:---|:---|
| **DATED** effective December 24, 2021. |  |  |
|  | **ATARAXY HOLDINGS CORP.** | **ATARAXY HOLDINGS CORP.** |
|  | Per: | /s/ Jingjing Jiang |
|  |  | Authorized signatory |
|  | **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** | **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** |
|  | Per: | /s/ Jingjing Jiang |
|  | Name: | Jingjing Jiang |
|  | Position: | Director |

---

**Schedule "A"**

**Repayment Schedule**

<u>Principal Amount Repayment</u>

---

| | | |
|:---|:---|:---|
| **Payment Date** | **Amount of Principal Paid** | **Remaining Principal** |
| On or prior to the date that is nine (9) weeks after the effective date of this Promissory Note | CAD$250,000.00 | CAD$250,000.00 |
| On or prior to the date that is seventeen (17) weeks after the effective date of this Promissory Note (the Maturity Date) | CAD$250,000.00 | Nil |

---

<u>Interest Repayment</u>

---

| | |
|:---|:---|
| **Payment Date** | **Amount of Interest Payable** |
| On or prior to the date that is seventeen (17) weeks after the effective date of this Promissory Note | CAD$50,000.00 |

---

**GENERAL SECURITY AGREEMENT** 

This general security agreement is dated effective December 24, 2021 between AdvEn Industries Inc., a corporation incorporated and subsisting pursuant to the laws of the Province of Alberta (the **Debtor**) and having a registered office at 9407-3 20 Avenue NW, Edmonton, Alberta T6N 1E5 and JiuHua Investment Holdings Company Limited, a corporation incorporated and subsisting pursuant to the laws of the Province of Alberta (the **Secured Party**) and having a registered office at 63 Cougar Plateau Circle SW, Calgary, Alberta T3H 5S7.

For good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Debtor and the Secured Party agree to be legally bound as follows:

**ARTICLE 1** 

**DEFINITIONS AND INTERPRETATION** 

1.1 Definitions

In this Security Agreement, the following capitalized terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Collateral** shall have the same meaning ascribed to it in <u>Section 2.1(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Debts** shall have the same meaning ascribed to it in <u>Section 2.1(a)(iii)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Encumbrance** or **Encumbrances** means any security interest, tax, rent, levy, lien, claim, charge,
mortgage or other encumbrance affecting the Collateral but excluding the Security Interest and those registered by the Senior Creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Event of Default** means any of the events specified in <u>Article 7</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Indebtedness** shall have the same meaning ascribed to it in <u>Section 3.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **person** means and includes any individual, body corporate, partnership, joint venture, syndicate,
trust, unincorporated association, Crown and agents and political subdivisions thereof, any other recognized entity (whether incorporated
or not) and any number or aggregate of persons, and includes the heirs, executors, administrators, and other legal representatives of
an individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **PPSA** means the *Personal Property Security Act* (Alberta);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Promissory Note** means the promissory note dated December 24, 2021 in the principal amount of CAD$500,000.00
as between certain borrowers thereunder and the Secured Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Receiver** shall have the same meaning ascribed to it in <u>Section 9.1(a)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Security Agreement** means this general security agreement and all instruments supplemental hereto
or in amendment hereof, and references to **Article**, **Section** or **Schedule** mean the specified Article, Section or Schedule
of this Security Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Security Interest** shall have the same meaning ascribed to it in <u>Section 2.1(a)</u>.

1.2 Headings

The descriptive headings used in this Security Agreement are for convenience only and are not to be considered part of this Security Agreement and do not in any way limit, explain or amplify the terms of this Security Agreement.

**1.3** **Number** 

Words importing the singular shall include the plural and vice versa.

1.4 Gender

Words importing the masculine gender shall include the feminine and neuter genders; however, where applicable, the terms in this Security Agreement shall be read with all grammatical changes necessary dependent upon the person referred to being a male, female, firm, partnership, or corporation.

1.5 Schedules

The Schedules and the provisions contained in such Schedules to this Security Agreement, if any, are incorporated by reference and form a part of this Security Agreement as fully as if set out in the body of this Security Agreement.

1.6 Statutory References

A reference to a statute in this Security Agreement includes all rules and regulations made pursuant to such statute and, unless expressly provided otherwise, the provisions of any statute, rule or regulation which amends, supplements or supersedes any such statute, rule or regulation.

**ARTICLE 2** 

**SECURITY INTEREST** 

2.1 Grant of Security Interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) As general and continuing security for the Indebtedness, the Debtor does grant to the Secured Party by
way of mortgage, pledge, charge, assignment and transfer, a security interest (the **Security Interest**) in all of the Debtor's present
and after-acquired personal property (collectively, the **Collateral**). Without limiting the generality of the foregoing, the Collateral
shall mean and include all right, title and interest that the Debtor now has, may be possessed of, entitled to, or acquire, now or hereafter
or may hereafter have in all property of the following kinds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all inventory of whatever kind and wherever situate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) all equipment (other than inventory) of whatever kind and wherever situate, including, without limitation,
all machinery, tools, apparatus, plant, furniture, fixtures and vehicles of whatsoever nature or kind;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all accounts and book debts and generally all debts, dues, claims, choses in action and demands of every
nature and kind howsoever arising or secured including letters of credit and advices of credit, which are now due, owing or accruing or
growing due to or owned by or which may hereafter become due, owing or accruing or growing due to or owned by the Debtor (**Debts**);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) all shares, stock, warrants, bonds, debentures, debenture stock and other investment property and all
instruments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) all coins or bills or other medium of exchange adopted for use as part of the currency of Canada or of
any foreign government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) all contractual rights and insurance claims and all goodwill, patents, trademarks, copyrights, and other
intangibles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) all of the specific personal property (if any) described in any schedule describing specific personal
property now or hereafter intended to be subjected to the Security Interest now or hereafter annexed hereto or made a part of this Security
Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) all books, papers, accounts, invoices, documents and other records in any form evidencing or relating
to any of the property described in <u>Sections 2.1(b)(i)</u> to <u>(vii)</u> inclusive, and all contracts, securities, instruments and
other rights and benefits in respect thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) all proceeds of any of the personal property described in <u>Section 2.1(b)</u> including personal property
in any form derived directly or indirectly from any dealing with such property or proceeds therefrom and any insurance proceeds or other
payment as indemnity or compensation for loss of or damage to such property or any right to such payment, and any payment made in total
or partial satisfaction, discharge or redemption of an intangible, chattel paper, instrument or security.

2.2 Non-Applicability of Security Interest

Notwithstanding <u>Section 2.1</u>, the Security Interest shall not extend or apply to and the Collateral shall not include: (i) any interest in personal property held in trust by the Debtor and lawfully belonging to others; or (ii) the last day of the term of any lease, verbal or written, or any agreement now held or hereafter acquired by the Debtor as tenant or any renewal of such lease. Rather, the Debtor will stand possessed of the reversion remaining in the Debtor of any leasehold premises for the time being demised to it upon trust to assign or dispose thereof as Secured Party directs.

2.3 Subordination of Security Interest

Notwithstanding anything to the contrary in this Security Agreement, the Secured Party acknowledges and agrees that the Security Interest will be and is hereby subordinated and postponed in favour of the secured creditors of the Debtor recorded in the PPSA as of and prior to the date of this Security Agreement, Spartan Capital Securities, LLC (**Spartan**) and any other security granted by the Debtor in connection with the contemplated brokered and/or non-brokered private placements of convertible debt securities, or a similar financing structure, for aggregate net proceeds of not less than CAD$5,000,000.00 (after payment of agent commissions, agent expenses and the legal and accounting expenses of Nano Innovations Inc.) together with any other third party investors investing with or through Spartan in connection with such financing (collectively, the **Senior Creditors**). The Secured Party hereby agrees that it will not be entitled to commence any action or proceeding against the Debtor for the realization of any Indebtedness or other recovery proceedings in respect of the Collateral or in connection with this Security Agreement without the prior written consent of the Senior Creditors. Accordingly, the Secured Party agrees to execute any and all subordination, standstill and postponement documentation or instruments required by the Senior Creditors or any one of them in such form as such Senior Creditors may require. For greater certainty, the Secured Party will take such steps so as to ensure that the completion of the aforementioned financing will not be prohibited, limited and/or restricted by way of the issuance of this Security Agreement to the Secured Party. Any breach of the foregoing provisions by the Secured Party will be deemed a fundamental breach of the terms of this Security Agreement and, in addition to any other rights available to the Debtor at law or in equity, will entitle the Debtor to treat this Security Agreement and the Promissory Note as void and of no further effect as against the Debtor and/or the borrowers thereunder and such treatment is agreed not to be a penalty but is intended to serve as compensation for the damages suffered by the Debtor as a result of such fundamental breach by the Secured Party.

**ARTICLE 3** 

**INDEBTEDNESS SECURED** 

3.1 Indebtedness

The Security Interest granted in this Security Agreement secures: (i) performance by the borrowers (more particularly identified in the Promissory Note) of the obligations, indebtedness and liability of such borrowers to the Secured Party arising directly in connection with the Promissory Note; or (ii) the performance by the Debtor of the terms set forth in Section 3(a) of the letter agreement dated November 26, 2021 between the Debtor and the Secured Party in respect of the acquisition of a total of 3,699,000 common shares in the authorized capital of the Debtor (collectively referred to herein as the **Indebtedness**).

3.2 Attachment of Security Interest

Subject to <u>Section 2.3</u>, the Security Interest created is intended to attach the Collateral when this Security Agreement is executed by the Debtor.

**ARTICLE 4** 

**DEBTOR'S REPRESENTATIONS AND WARRANTIES** 

The Debtor represents and warrants and, so long as this Security Agreement remains in effect, continuously represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the name of the Debtor is accurately and fully set out above, and the Debtor is not known by any other
name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Debtor has the adequate power and authority to enter into and perform its obligations under this Security
Agreement and this Security Agreement constitutes a valid and binding obligation of the Debtor to Secured Party enforceable in accordance
with its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the execution and delivery of this Security Agreement by the Debtor and the carrying out of any promises,
covenants or agreements herein required does not and will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) require the consent or waiver of any person, other than such as have been or will when required be, obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) violate any contract, agreement or document to which the Debtor is a party or by which it is bound; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) violate any statute, regulation, order, ruling or decree of any Court or governmental authority or agency
by which the Debtor is bound.

**ARTICLE 5** 

**DEBTOR'S COVENANTS** 

5.1 General Covenants

Subject to <u>Section 2.3</u>, the Debtor covenants and agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to deliver or cause to be delivered to the Secured Party from time to time promptly upon request such
information concerning the Collateral, the Debtor and the Debtor's business and affairs as Secured Party may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to keep proper books of account and records covering all its business and affairs, and will permit the
Secured Party by its officers or authorized agents at any time to inspect such books of account and records and to take extracts therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to carry on and conduct the business of the Debtor in a proper and efficient manner and so as to protect
and preserve the Collateral and to keep, in accordance with generally accepted accounting principles, consistently applied, proper books
of account for the Debtor's business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to keep the Collateral in good order, condition and repair and not to use the Collateral in violation
of the provisions of this Security Agreement of any other agreement relating to the Collateral or any policy insuring the Collateral or
any applicable statute, law, by-law, rule, regulation or ordinance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) to defend the Collateral against the claims and demands of all other parties claiming the same or an interest
therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) in the event the value of the Collateral shall be materially reduced, to immediately reduce the amount
of the Indebtedness by an amount determined by Secured Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to give prompt written notice to Secured Party of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the details of any significant acquisition of Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any material loss, damage to or destruction of any of the Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the return to or repossession by Debtor of Collateral.

5.2 Observation of Covenants by the Debtor

The Debtor will perform and observe every covenant, whether of a positive or negative nature, made by it, whether before or after this Security Agreement, in favour of the Secured Party, whether relating to monies secured by this Security Agreement or otherwise. The Debtor will also perform and observe all of its covenants and obligations to third parties who have or may acquire an interest, mortgage or charge in or over the Collateral including the Senior Creditors.

**ARTICLE 6**

**USE AND VERIFICATION OF COLLATERAL**

The Debtor may, until default, possess, operate, collect, use and enjoy and deal with Collateral in the ordinary course of Debtor's business in any manner not inconsistent with the provisions hereof; provided always that the Secured Party shall have the right at any time and from time to time to verify the existence and state of the Collateral in any manner the Secured Party may reasonably consider appropriate.

**ARTICLE 7**

**DEFAULT**

Each and every one of the following events or conditions shall, for purposes of this Security Agreement, constitute an Event of Default:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Debtor fails to make any payment of any amount forming part of the Indebtedness, as required under
this Security Agreement or other agreement or contract evidencing the indebtedness of the Debtor, directly or indirectly, to the Secured
Party, whether by acceleration or otherwise, on the due date thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) other than in respect of the Senior Creditors, if any Encumbrance affecting the Collateral becomes enforceable
against the Collateral;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) proceedings are taken to enforce any encumbrance on any of the property or assets of the Debtor or a Receiver,
manager or trustee is appointed in respect of the business of the Debtor, by a court of competent jurisdiction, or under an agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any formal or informal proceeding or any other act undertaken for the dissolution, liquidation or winding
up of the business or personal affairs of the Debtor is instituted by or against the Debtor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an order is made for the winding up of the Debtor business, a petition is filed for the winding up of
the Debtor business, or a receiver of the Debtor is appointed (even though the appointment of such receiver may not have been valid);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) if any execution, sequestration, extent or other process of any court becomes enforceable against the
Debtor or if a distress or analogous process is levied upon the assets of the Debtor or any part thereof; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Debtor is adjudged bankrupt or becomes insolvent, a petition in bankruptcy receiving order is filed
or made against the Debtor, the Debtor makes an assignment for the general benefit of creditors or applies for relief under the *Companies' Creditors Arrangement Act*, or proceedings of any type are instituted in any jurisdiction in respect of the alleged insolvency or bankruptcy
of the Debtor.

**ARTICLE 8** 

**ACCELERATION** 

In the Event of Default, the Secured Party, in its sole discretion, may without demand or notice of any kind and without any days grace being given to the Debtor, declare all or any of the Indebtedness which is not by its terms payable on demand, to be immediately due and payable, and, subject to <u>Section 2.3</u>, this Security Agreement will immediately become enforceable and may be enforced without the requirement of any notice of default or non-payment from the Debtor. This <u>Article 8</u> does not apply to or affect any of the Indebtedness payable on demand.

**ARTICLE 9** 

**REMEDIES** 

9.1 Remedies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section 2.3</u>, upon default, the Secured Party may appoint or reappoint by instrument
in writing, any person or persons, whether an officer, manager, agent or employee of the Secured Party or not, to be a receiver or receivers
(hereinafter called a **Receiver**, which term when used herein shall include a receiver and manager) of Collateral (including any
interest, income or profits therefrom) and may remove any Receiver so appointed and appoint another in his stead. Any such Receiver shall,
so far as concerns responsibility for his acts, be deemed the agent of Debtor and not the Secured Party, and the Secured Party shall not
be in any way responsible for any misconduct, negligence, or non-feasance on the part of any such Receiver, his servants, agents or employees.
Subject to the provisions of the instrument appointing him and <u>Section 2.3</u>, any such Receiver shall have power to take possession
of Collateral, to preserve Collateral or its value, to carry on or concur in carrying on all or any part of the business of Debtor and
to sell, lease or otherwise dispose of or concur in selling, leasing or otherwise disposing of Collateral. To facilitate the foregoing
powers, any such Receiver may, to the exclusion of all others, including Debtor, enter upon, use and occupy all premises owned or occupied
by Debtor wherein Collateral may be situate, maintain Collateral upon such premises, borrow money on a secured or unsecured basis and
use Collateral directly in carrying on Debtor's business or as security for loans or advances to enable him to carry on Debtor's business
or otherwise, as such Receiver shall, in its discretion, determine. Except as may be otherwise directed by the Secured Party, all money
received from time to time by such Receiver in carrying out its appointment shall be received in trust for and paid over to Secured Party.
Every such Receiver may, in the discretion of the Secured Party, be vested with all or any of the rights and powers of the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon default and subject to <u>Section 2.3</u>,, the Secured Party may, either directly or through its
agents or nominees, exercise any or all of the powers and rights given to a Receiver by virtue of <u>Section 9.1(a)</u>.

9.2 Secured Party's Rights and Remedies Pursuant to the PPSA

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In addition to those rights granted herein and in any other agreement now or hereafter in effect between
the Debtor and the Secured Party and in addition to any other rights the Secured Party may have at law or in equity, the Secured Party
shall have, both before and after default, all rights and remedies of a secured party under the PPSA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Secured Party will give the Debtor such notice, if any, of the date, time and place of any public
sale or of the date after which any private disposition of the Collateral is to be made, as may be required by the PPSA.

**ARTICLE 10** 

**COSTS AND EXPENSES** 

10.1 Debtor Shall Pay

The Debtor shall pay all costs, charges and expenses directly and reasonably incurred by the Secured Party (including, but without the generality of the foregoing, costs as between a solicitor and his own client on a full indemnity basis) in enforcing this Security Agreement.

10.2 All Amounts Form Part of the Indebtedness

All amounts paid by the Secured Party pursuant to <u>Article 10</u> together with interest thereon shall form part of the Indebtedness and be secured.

**ARTICLE 11** 

**FURTHER ASSURANCES** 

The Debtor agrees to execute and deliver to the Secured Party such further assurances, and conveyances and supplemental deeds as may be necessary to properly carry out the intention of this Security Agreement.

**ARTICLE 12** 

**NOTICE** 

Any notice or demand required or permitted to be made or given by the Secured Party to the Debtor may be validly served by leaving the same with, or by mailing the same by prepaid registered mail to the Debtor at the address set out at the beginning of this Security Agreement (or at such other address as the Debtor may in writing notify the Secured Party of as the Debtor's address for service under this Security Agreement) or by leaving such notice with an adult present at the address set out at the beginning of this Security Agreement, and in the case of mailing such notice or demand shall be deemed to have been received by the Debtor on the fifth business day following the date of mailing.

**ARTICLE 13** 

**OTHER RIGHTS OF SECURED PARTY**

13.1 Remedies

The Secured Party may pursue its remedies under this Security Agreement and under any other security held by it concurrently without prejudicing one remedy to the other. The pursuance of one or more remedies will not constitute an election by the Secured Party to abandon any other remedies available to it.

**13.2** **Secured Party Not Obligated to Exercise or Act on Rights, etc.** 

Whenever the Secured Party is given the right, permission or discretion to take some step or to exercise some remedy, the Secured Party will have no obligation to exercise or act on the right, permission, discretion or to do anything whatever pursuant thereto. The Secured Party will have no liability whatsoever for choosing not to exercise or act, in whole or in part, on such right, permission, discretion or remedy.

13.3 Waiver of Breach by Secured Party

No waiver by the Secured Party of a breach by the Debtor under this Security Agreement will take effect or be binding on the Secured Party unless the same is in writing signed by the Secured Party or its authorized agent. Such waiver will apply only to the particular default waived and will not operate as a waiver of any other or future default. No delay or omission on the part of the Secured Party to exercise any right or power under this Security Agreement will impair such right or power or be considered to be a waiver or acquiescence of any default. All rights and remedies of the Secured Party granted or recognized herein are cumulative and may be exercised at any time and from time to time independently or in combination.

13.4 Extensions and Other Indulgences Granted by Secured Party

The Secured Party may grant extensions of time and other indulgences, take and give up security, accept compositions, compound, compromise, settle, grant releases and discharges and otherwise deal with the Debtor, debtors of the Debtor, sureties and others and with the Collateral and other security as the Secured Party may see fit without prejudice to the liability of the Debtor or the Secured Party's right to hold and realize the Security Interest. Furthermore, the Secured Party may demand, collect and sue on the Collateral in either the Debtor's or the Secured Party's name, at the Secured Party's option, and may endorse the Debtor's name on any and all cheques, commercial paper, and any other instruments pertaining to or constituting the Collateral. Nothing contained in this Security Agreement shall in any way obligate the Secured Party to grant, continue, renew, extend time for payment of or accept anything which constitutes or would constitute the Indebtedness.

13.5 Postponement or Partial Discharge

The Secured Party may postpone or partially discharge this Security Agreement but the same will not release or discharge the Debtor from any obligation or liability to the Secured Party under this Security Agreement.

**ARTICLE 14** 

**AUTHORIZATION** 

**ARTICLE 15** 

**GENERAL** 

15.1 No Merger

The taking of a judgment or judgments under any of the covenants contained in this Security Agreement will not operate as a merger of such covenants or of the Secured Party's security by way of a charge against the Collateral, nor will it affect the Secured Party's right to interest on the Indebtedness.

15.2 Waiver of Protest by Debtor

The Debtor waives protest of any instrument constituting the Collateral at any time held by the Secured

Party on which the Debtor is in any way liable and, subject to <u>Section 9.2(b)</u>, notice of any other action taken by the Secured Party.

15.3 Amendments

No modification, variation or amendment of any term of this Security Agreement shall be binding or effective unless made by written agreement, executed by the Secured Party and the Debtor hereto and no waiver of any term hereof shall be binding or effective unless in writing.

15.4 Entire Security Agreement

This Security Agreement is in addition to and not in substitution for any other agreements, security or securities now or hereafter held by the Secured Party and all such other agreements, securities and the Security Interest shall remain in full force and effect until the Secured Party shall actually receive written notice of its discontinuance.

15.5 Disclosure of Information Pursuant to the PPSA

This Security Agreement and any information pertaining thereto or to the Indebtedness may be disclosed by the Secured Party as required by the PPSA.

15.6 Enurement

This Security Agreement shall enure to the benefit of the Secured Party, and shall enure to the benefit of and be binding upon the Debtor, and their respective heirs, executors, administrators, successors and assigns. In any action brought by an assignee of this Security Agreement and the Security Interest or any part thereof to enforce any rights under this Security Agreement, the Debtor shall not assert against the assignee any claim or defence which the Debtor now has or hereafter may have against the Secured Party.

**15.7** **Governing Law** 

This Security Agreement and the transactions evidenced shall be governed by and construed in accordance with the laws of the Province of Alberta as the same may from time to time be in effect, including, where applicable, the PPSA, and the Debtor irrevocably agrees that any suit or proceedings with respect to any matters arising out of or in connection with this Security Agreement may be brought in the Courts of the Province of Alberta or in any Court of competent jurisdiction, as the Secured Party may elect, and the Debtor agrees to attorn to the same.

15.8 Severability

Should any provision of this Security Agreement, in whole or in part, be or become prohibited or unenforceable in any jurisdiction, such provision shall be ineffective to the extent of such prohibition or enforceability without invalidating the remaining provisions or affecting the validity or enforceability of such provision in any other jurisdiction. In any such case, in lieu of the prohibited or unenforceable provision, this Security Agreement shall be applied or interpreted in a reasonable manner which so far as is legally permissible comes as close as possible to the application that the Party or Parties and the Secured Party intended or would have intended according to the sense and purpose of this Security Agreement had they known of the prohibition or unenforceability at the time of the execution of this Security Agreement.

15.9 Acknowledgment of Receipt of a Copy of this Security Agreement

The Debtor acknowledges receipt of a copy of this Security Agreement and waives any right it may have to receive a financing statement or financing change statement relating to it.

19.11 Counterpart Execution

This Security Agreement may be executed and delivered in one or more counterparts, including execution by electronic signature, and each counterpart execution page when so executed and delivered shall be deemed to be an original and such counterpart execution pages together shall constitute one and the same Security Agreement. Delivery by facsimile or PDF e-mail attachment shall be an accepted mode of delivery of such counterpart execution pages.

 **

***[Remainder of this page intentionally left blank; signature page follows.]***

 **

**IN WITNESS WHEREOF** the Debtor has executed this Security Agreement effective as of the date first written above.

---

| | |
|:---|:---|
|  | **ADVEN INDUSTRIES INC.** |
| Per: | /s/ Yanguang Yuan |
|  | Yanguang Yuan |

---

**RESIGNATION**

---

| | |
|:---|:---|
| To: | The Board of Directors of AdvEn Industries Inc. (**AdvEn**) |

---

The undersigned hereby resigns as a director and/or officer of AdvEn effective December 24, 2021 (the **Effective Date**).

Dated as of the Effective Date.

---

| |
|:---|
| /s/ QINGTAO TAN |
| **QINGTAO TAN** |

---

**ACKNOWLEDGMENT**

---

| | |
|:---|:---|
| To: | The Board of Directors of Tangold Inc. (**Tangold**) and AdvEn Bitumen Innovation Inc. (**Bitumen**) |

---

I hereby acknowledge and confirm that I have not held any office or directorship with Tangold and/or Bitumen at any time including for any period of time on or prior to December 24, 2021 (the **Effective Date**).

Dated as of the Effective Date.

---

| |
|:---|
| /s/ QINGTAO TAN |
| **QINGTAO TAN** |

---

**STOCK TRANSFER POWER OF ATTORNEY**

FOR VALUE RECEIVED the undersigned sells, assigns and transfers 1,849,500 common shares held by the undersigned in the authorized capital of AdvEn Industries Inc. (AdvEn) to Canadian Nexus Team Ventures Corp. (Buyer 1) and an additional 1,849,500 common shares held by the undersigned in the authorized capital of AdvEn to Ataraxy Holdings Corp. (Buyer 2), which securities are represented by Share Certificate No. 48 issued to the undersigned on February 15, 2021, and does hereby irrevocably constitute and appoint any director or officer of AdvEn (or lawyer at Lindsey Maccarthy LLP) as attorney to transfer the said shares on the books of AdvEn to each of Buyer 1 and Buyer 2 with full power of substitution in the premises. The aforementioned transfer of shares shall be effected on the books and records of AdvEn effective as at February 15, 2021.

---

| | |
|:---|:---|
| **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** | **JIUHUA INVESTMENT HOLDINGS COMPANY LIMITED** |
| Per: | /s/ Jingjing Jiang |
| Name: | Jingjing Jiang |
| Title: | Director |

---

## Exhibit 10.11

**Exhibit 10.11**

**AMENDED AND RESTATED TECHNOLOGY ACQUISITION AGREEMENT**

This Amended and Restated Technology Acquisition Agreement (**Agreement**) dated effective as of May 30, 2022 (the **Effective Date**) is by and between AdvEn Industries Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (the **Corporation**) and Tangold Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (**Acquiror**) (collectively, the **Parties** or each individually, a **Party**).

**WHEREAS:** 

A. The
 Corporation has developed, and is the owner of, the Activated Carbon Technology, the Carbon
 Fibre Technology, and the Solid Bitumen Technology including the Patent and the Know- How.

B. The
 Parties have entered into a Technology Acquisition Agreement dated effective as of February
 5, 2021 (**Original Agreement**), pursuant to which the Acquiror acquired the exclusive
 right to use and exploit the Carbon Fibre Technology in the Territory and develop, own, and
 exploit all Improvements related thereto.

C. The
 Corporation has granted AdvEn Bitumen Innovation Inc. (**Bitumen Innovation**) the exclusive
 right to use and exploit the Solid Bitumen Technology in the Territory and develop, own,
 and exploit all improvements related thereto, pursuant to a Technology Acquisition Agreement
 dated effective as of February 5, 2021 (**Bitumen Technology Transfer Agreement**).

D. The
 Acquiror now desires to further acquire all right, title, and interest in the Activated Carbon
 Technology, Carbon Fibre Technology, and the Solid Bitumen Technology including the Patent
 and Know-How.

E. The
 Acquiror, also desires, upon such further acquisition, to assume and be bound by the Bitumen
 Technology Transfer Agreement in place of the Corporation.

F. The
 Acquiror, also desires, upon such further acquisition, to grant to the Corporation exclusive
 rights to use and exploit the Patent and the Know-How in the Residual Fields.

G. The
 Parties desire to amend and restate the Original Agreement, as set forth herein to reflect
 the desired changes in their respective rights given such further acquisition.

**NOW THEREFORE**, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

1. <u>Interpretation</u> 

1.1 <u>Definitions</u>.
 For purposes of this Agreement, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Acquiror** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Activated Carbon Technology** means the Patents and Know-How, each for use in the field of activated
 carbons and activated carbon feedstock, including carbonized solid bitumen using solid bitumen
 as feedstock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Agreement** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Assignee** has the meaning set forth in <u>Section 14.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Assignor** has the meaning set forth in <u>Section 14.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Bitumen Innovation** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Bitumen Innovation Entity** means Bitumen Innovation or its permitted successor or Assignee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Business Day** means a day other than a Saturday, Sunday, or other day on which commercial banks
 in Edmonton, Alberta are authorized or required by Law to be closed for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Carbon Fibre Technology** means the Patents and Know-How, each for use in the field of carbon
 fibre and carbon fibre feedstock, including solid bitumen as feedstock for any use, with
 a melting point greater than or equal to 150 degrees Celsius.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Confidential Information** means all non-public, confidential, or proprietary information of the Disclosing
 Party, whether in oral, written, electronic, or other form or media, including information
 that is marked, designated, or otherwise identified as "confidential" and any
 information that, due to the nature of its subject matter or circumstances surrounding its
 disclosure, would reasonably be understood to be confidential or proprietary. Confidential
 Information does not include information that the Receiving Party can demonstrate by documentation:
 (i) was already known to the Receiving Party without restriction on use or disclosure prior
 to receipt of such information directly or indirectly from or on behalf of the Disclosing
 Party; (ii) was or is independently developed by the Receiving Party without reference to
 or use of any Confidential Information; (iii) was or becomes generally known by the public
 other than by breach of this Agreement by, or other wrongful act of, the Receiving Party;
 or (vi) was received by the Receiving Party from a third party who was not, at the time of
 receipt, under any obligation to the Disclosing Party or any other Person to maintain the
 confidentiality of such information. For the avoidance of doubt and subject to above exclusions
 (i)-(iv), Confidential Information includes the Patents and the Know-How.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Cost Amount** with: (i) respect to the Carbon Fibre Technology acquired pursuant to and in accordance
 with the Original Agreement, has the meaning given to that term in subsection 248(1) of the
 ITA, subject to any adjustments to be made pursuant to subsection 85(1) of the ITA; and (ii)
 respect to the additional rights acquired by the Acquiror under this Agreement, has the meaning
 given to that term in subsection 248(1) of the ITA, subject to any adjustments to be made
 pursuant to subsection 85(1) of the ITA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Corporation** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Disclosing Party** has the meaning set forth in <u>Section 9.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **Effective Date** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **Elected Amount** means the amount jointly elected by the Parties pursuant to <u>Section 4.3</u> below as it relates to the Original Agreement or this Agreement, as the case may be, and
 as set out in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Fair Market Value** means C$450,000.00, being the fair market value of the Carbon Fibre Technology
 as at the Effective Date of the Original Agreement, determined by an independent Chartered
 Business Valuator in good standing with The Canadian Institute of Chartered Business Valuators
 and C$250,000.00 being the fair market value of the additional rights granted by the Corporation
 to the Acquiror in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **Governmental Authority** means any federal, state, national, supranational, local, or other government,
 whether domestic or foreign, including any subdivision, department, agency, instrumentality,
 authority (including any regulatory authority), commission, board, or bureau thereof, or
 any court, tribunal, or arbitrator.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) **Improvement** means any modification of or improvement or enhancement of the Patent or Know-how.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) **Indemnitee** has the meaning set forth in <u>Section 12.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) **Independent Action** has the meaning set forth in <u>Section 6.2</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) **Infringement** has the meaning set forth in <u>Section 7.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **ITA** means the *Income Tax ITA* (Canada).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) **Know-How** means any and all technical information, trade secrets, formulas, prototypes, specifications,
 directions, instructions, test protocols, procedures, results, studies, analyses, raw material
 sources, data, manufacturing data, formulation or production technology, conceptions, ideas,
 innovations, discoveries, inventions, processes, methods, materials, machines, devices, formulae,
 equipment, enhancements, modifications, technological developments, techniques, systems,
 tools, designs, drawings, plans, software, documentation, data, programs, and other knowledge,
 information, skills, and materials owned by Corporation and useful in the manufacture, sale,
 or use of the Products or Process, existing as of the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **Law** means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty,
 common law, judgment, decree, other requirement or rule of law of any federal, state, local,
 or foreign government or political subdivision thereof, or any arbitrator, court, or tribunal
 of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) **Losses** means all losses, damages, liabilities, costs, and expenses, including reasonable attorneys'
 fees and other litigation costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) **New Consideration Shares** means 1,150,500 class A voting common shares in the authorized capital
 of Acquiror issued at a deemed issue price of C$0.2173 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) **Original Consideration Shares** means 26,000,000 class A voting common shares in the authorized
 capital of Acquiror issued at a deemed issue price of C$0.0173 per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) **Party** has the meaning set forth in the preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) **Patent** means any of: (a) the Priority Patent Application; (b) any patent application that claims
 priority to the patent application identified in (a); (c) any patents issuing on any patent
 application identified in (a) or (b), including any reissues, renewals, reexaminations, substitutions
 or extensions thereof; (d) any foreign counterpart (including Patent Cooperation Treaty application(s))
 of any patent or patent application identified in (a), (b) or (c); (e) any supplementary
 protection certificates, any other patent term extensions and exclusivity periods and the
 like of any patents and patent applications identified in (a) through (d); and (f) all rights
 of priority in any of (a) through (e) under international conventions, treaties or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) **Person** means an individual, corporation, partnership, joint venture, limited liability company,
 governmental authority, unincorporated organization, trust, association, or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) **Process** means any process or part thereof the use, practice, sale, offer for sale, of which would
 constitute, but for the rights acquired by the Acquiror pursuant to and in accordance with
 this Agreement, an infringement of any Valid Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) **Products** means any service or product, or part thereof the manufacture, use, sale, offer for sale,
 or importation of which would constitute, but for the rights acquired by the Acquiror pursuant
 to and in accordance with this Agreement, an infringement of any Valid Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) **Priority Patent Application** means U.S. Provisional Patent Application No. 63/092,912.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) **Prosecution Action** has the meaning set forth in <u>Section 6.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Purchase Price Amount** means C$250,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) **Receiving Party** has the meaning set forth in <u>Section 9.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) **Representatives** means a Party's employees, officers, directors, consultants, and legal advisors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) **Residual Fields** means all fields other than the fields of the Carbon Fibre Technology and the
 Solid Bitumen Technology. For avoidance of doubt, Residual Fields includes the field of the
 Activated Carbon Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) **Security Agreements** means, together, the general security agreements between the Corporation and:
 (i) 1367054 Alberta Ltd. dated December 28, 2017; and (ii) JiuHua Investment Holdings Company
 Limited dated December 24, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) **Sell-Off Period** has the meaning set forth in <u>Section 13.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) **Solid Bitumen Technology** means the Patents and Know-How, each for use in the field of solid
 bitumen, including as feedstock for any use, with a melting point less than 150 degrees Celsius,
 but specifically excluding use in the respective fields of the Activated Carbon Technology
 and the Carbon Fibre Technology.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) **Term** has the meaning set forth in <u>Section 13.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) **Territory** means worldwide.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) **Third-party Action** has the meaning set forth in <u>Section 12.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) **Valid Claim** means, on a country-by-country basis, a claim of a pending application, or an unexpired
 issued or granted patent of the Patents, as long as the claim has not been admitted by Corporation
 or otherwise caused to be invalid or unenforceable through reissue, disclaimer, or otherwise,
 or held invalid or unenforceable by a Governmental Authority of competent jurisdiction from
 whose judgment no appeal is allowed or timely taken.

1.2 <u>Knowledge.</u> Any reference in this Agreement to "the knowledge" of the Corporation or
 such similar term will be deemed to mean the actual knowledge of Yanguang Yuan including
 the knowledge that Yanguang Yuan would have had if he had conducted a reasonably diligent
 inquiry into the relevant subject matter.

1.3 <u>Conditions Precedent</u>. Concurrent with the execution of this Agreement and as a condition precedent
 to the valid transfer of the Activated Carbon Technology, Carbon Fibre Technology, and the
 Solid Bitumen Technology including the Patent and Know-How, from the Corporation to the Acquiror:
 (a) the Acquiror must enter into an agreement, in substantially the form attached hereto
 as <u>Schedule B</u>, to assume the right and interest of the Corporation in and be bound
 by the Bitumen Technology Transfer Agreement in place of the Corporation; and (b) the Acquiror
 must enter into the documentation attached hereto as <u>Schedule C</u> reflecting the terms
 by which the Acquiror will repay certain indebtedness owing by the Acquiror to the Corporation
 as at the date of this Agreement.

2. <u>Patents and Know-How.</u> 

2.1 <u>Assignment</u>. Corporation hereby sells, assigns, transfers and sets over to the Acquiror its entire right, title, interest, property and benefit, including any right to sue for past infringements, throughout the Territory, in and to the Activated Carbon Technology, Carbon Fibre Technology and the Solid Bitumen Technology, including, without limitation, the Patent and the Know-How, to be held and enjoyed as fully and exclusively as the same would have been held and enjoyed by the Corporation had this assignment not been made.

2.2 <u>Transfer of Know-How</u>. Promptly after the Effective Date, the Corporation shall deliver the KnowHow to the Acquiror in such form and media as the Acquiror may reasonably request. Upon the Acquiror's reasonable request, the Corporation shall make available one or more of its technical personnel to provide the Acquiror with reasonable technical assistance concerning the Know-How with reasonable compensation to the Acquiror for the technical personnel's time and reasonable travel expenses.

2.3 <u>Improvements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All
 right, title, and interest in any Improvement conceived, made, reduced to practice, or acquired
 by the Corporation during the Term, and all of the Corporation's right, title, and
 interest in any patents and patent applications claiming any such Improvements, will as between
 the Parties, remain the sole and exclusive property of the Corporation, provided that the
 Corporation hereby grants to the Acquiror an exclusive, worldwide, royalty-free, transferable,
 license, with the right to grant sublicenses, under its right, title, and interest in such
 Improvements, patents, and patent applications in the fields of the Carbon Fibre Technology
 and the Solid Bitumen Technology. The Corporation shall disclose each Improvement to the
 Acquiror within 30 days after it is conceived, made, reduced to practice, or acquired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All
 right, title, and interest in any Improvement conceived, made, or reduced to practice, or
 acquired by the Acquiror during the Term, and all of Acquiror's patents and patent
 applications claiming any such Improvements, will as between the Parties, remain the sole
 and exclusive property of the Acquiror, provided that all such Improvements, patents, and
 patent applications shall be included within the scope of the grant of license under <u>Section 3.1</u>, limited to Residual Fields (as a Patent in the case of patents and patent applications
 or as Know-How otherwise), and subject to all of the Acquiror's rights and obligations
 hereunder in relation to such grant of license. Acquiror shall disclose each Improvement
 to the Corporation within 30 days after it is conceived, made, reduced to practice, or acquired.

3. <u>Licenses.</u>

3.1 <u>Residual Fields</u>. Subject to the terms and conditions of this Agreement, the Acquiror hereby grants, transfers, and conveys to the Corporation, and the Corporation hereby acquires from the Acquiror, during the Term an exclusive, irrevocable, royalty-free, fully paid, worldwide, sublicensable (only in accordance with <u>Section 3.3</u>), transferable (only in accordance with <u>Section 14.6</u>) right and license to use and exploit the Patent and the Know-How, including to make, use, offer to sell, sell, and import Products and to practice Processes, in the Residual Fields.

3.2 <u>Restrictions on the Acquiror.</u> The Acquiror shall neither itself nor grant others the right to make, use, offer to sell, sell, or import Products or Practice the Processes in the Residual Fields during the Term in the Territory.

3.3 <u>Sublicensing</u>. The Acquiror hereby grants, transfers, and conveys to the Corporation the right to sublicense all and any of its rights to and in respect of the Patent and Know-How in the Residual Fields. The granting of any such sublicenses will be at the Corporation's sole and exclusive discretion and the Corporation will have the sole and exclusive power to determine the identity of any sublicensee, the applicable fees or royalty rates, if any, and other terms and conditions of the sublicense; provided, that the Corporation will ensure that no sublicense may exceed the scope of rights granted to the Corporation pursuant to and in accordance with this Agreement and each sublicensee agrees to be bound by the applicable terms and conditions of this Agreement. The Corporation shall enforce all sublicenses at its own cost and shall be responsible for the acts and omissions of its sublicensees. In the event of the termination of the licenses in accordance with <u>Section 13.2</u> or expiration of the Term, all sublicense rights will terminate effective as of such termination or expiration of Term, as applicable.

4. <u>Payments</u>.

4.1 The Parties acknowledge that in consideration for the rights granted, transferred, and conveyed to the Acquiror under the Original Agreement, the Acquiror has paid to the Corporation on a non-refundable basis an amount equal to the Fair Market Value by issuing the Original Consideration Shares to the Corporation.

4.2 The Parties agree that in consideration for the further rights granted, transferred, and conveyed to the Acquiror hereunder, the Acquiror shall pay to the Corporation an amount equal to the Purchase Price Amount, representing the value of such further rights, by issuing the New Consideration Shares to the Corporation on the Effective Date.

4.3 <u>Section 85(1) Elections</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Parties have jointly elected and the Corporation has filed in the prescribed form and within
 the prescribed time under subsection 85(6) of the ITA and under the corresponding sections
 of any applicable provincial statute electing an agreed amount with respect to the Original
 Consideration Shares (as consideration for the acquisition of the rights granted to and acquired
 by the Acquiror with respect to the Carbon Fibre Technology under the Original Agreement)
 in accordance with <u>Schedule A</u>, which Elected Amount shall be, pursuant to subsection
 85(1) of the ITA, the Corporation's proceeds of disposition and the Acquiror's
 cost of the Carbon Fibre Technology, pursuant to and in accordance with the terms of the
 Original Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Parties will jointly elect under subsection 85(1) of the ITA in the prescribed form and within
 the time required by subsection 85(6) of the ITA in respect of the New Consideration Shares.
 Such election will be prepared by the Corporation and will elect therein the agreed Elected
 Amount more particularly described in <u>Schedule A</u>, which amount will be deemed to be
 the Corporation's proceeds of disposition and the Acquiror's cost of the acquisition
 of the further rights contemplated in this Agreement.

4.4 <u>Price Adjustment</u>. In the event of any income tax assessment or reassessment (the **Tax Notice**) against either the Corporation or the Acquiror with respect to the Original Consideration Shares (as consideration for the acquisition of the rights granted to and acquired by the Acquiror pursuant to the Original Agreement) or with respect to the New Consideration Shares (as consideration for the acquisition of the additional rights granted to and acquired by the Acquiror pursuant to this Agreement) which adjusts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Cost Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Elected Amount; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 Fair Market Value,

of the Carbon Fibre Technology or the additional rights granted by the Corporation to the Acquiror in connection with this Agreement, as the case may be, then the Party so assessed or reassessed (the **First Party**) shall immediately give notice to the other Party of the Tax Notice. At the same time the First Party shall indicate whether or not the First Party will pursue a conscientious objection to the Tax Notice. In the event that the First Party does not propose to pursue such objection to the Tax Notice, the other Party shall have 30 days from the receipt of the notice to advise the First Party of its desire to oppose the Tax Notice (the **Objecting Party**). In that event, the Objecting Party shall have full authority to conscientiously prosecute an objection on behalf of the First Party and the First Party agrees to cooperate fully in respect of such objection, including the filing of documents, attendance at meetings and doing such other acts and things as may reasonably be required by the Objecting Party.

4.5 In the event that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) no
 Party seeks to pursue an objection to the Tax Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all
 appeal rights in respect of the Tax Notice have expired without appeals having been taken;
 or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 court or tribunal having jurisdiction in the matter has decided to uphold the determination
 contained in the Tax Notice or has decided that the Cost Amount or the Fair Market Value
 is an amount (the **Court Determined Amount**) which is equal to neither the amount set
 out in the Tax Notice nor value of the Original Consideration Shares or the additional rights
 granted by the Corporation to the Acquiror in connection with this Agreement, as the case
 may be, and: (i) all appeal rights in respect of such decision have been exhausted or have
 expired without appeals having been taken; or (ii) the Parties agree with such decision,

then the Cost Amount, the Elected Amount, or the Fair Market Value, as the case may be, of the relevant property or properties set forth in the Tax Notice or, where the Court Determined Amount is different than the amount set forth in the Tax Notice, the Court Determined Amount, shall constitute the Cost Amount, the Elected Amount, or the Fair Market Value of the relevant property or properties in question, so as to effect an automatic adjustment in the Elected Amount or the value of the Original Consideration Shares and/or the New Consideration Shares, as the case may be, if necessary and appropriate. If relevant, the consideration as represented by the Original Consideration Shares and/or the New Consideration Shares shall be adjusted in accordance with the Articles of Incorporation of the Acquiror as registered with the Registrar of Corporations in the Province of Alberta.

4.6 Should an objection to the Tax Notice be initially pursued and the Objecting Party wishes to abandon further pursuit by terminating any negotiations, by accepting a settlement proposal with the Canada Revenue Agency, or by not appealing a judgment of a court of competent jurisdiction, or by any other means whatever, then such Objecting Party shall give full details and immediate notice (**Notice to Desist**) to the other Party. If within 20 days of receipt of the Notice to Desist, the other Party fails to deliver a notice of its desire to continue such objection (**Notice to Continue**), then the Objecting Party shall be entitled to consummate the settlement proposal with the Canada Revenue Agency, adopt a judgment, or abandon any further pursuit of the matter. In that event, the Cost Amount, the Elected Amount, or the Fair Market Value as thus determined shall be the Elected Amount (if necessary and appropriate) or amount of the Original Consideration Shares and/or New Consideration Shares, as the case may be. The value of the Original Consideration Shares and/or the New Consideration Shares, as the case may be, shall be adjusted as required. Should a Notice to Continue be delivered as aforesaid by the other Party, the provisions of this paragraph shall apply *mutatis mutandis* thereto.

4.7 It is the intention of the Parties that the transaction contemplated by the Original Agreement and this Agreement take place on a tax-deferred basis, such that no capital gains shall be realized by the Corporation on its disposition of the Carbon Fibre Technology pursuant to the Original Agreement and that no capital gains shall be realized by the Corporation on its disposition of the additional rights granted to the Acquiror in connection with this Agreement, and this <u>Article 4</u> shall be interpreted on such basis. For greater certainty, unless otherwise agreed between the Parties, where the application of this <u>Article 4</u> results in an adjustment to the Cost Amount of the relevant property in question, the Elected Amount shall, if reasonable or appropriate, be adjusted on a retroactive basis to be equal to such amount as would give effect to the joint intention expressed in this <u>Article 4</u>, and either the Corporation and the Acquiror may make such filings as may be necessary to give effect to such adjustment to the Elected Amount.

5. <u>Records and Audit</u>.

5.1 Corporation is not required to maintain record(s) for the benefit of the Acquiror.

5.2 Corporation is not required to conduct an audit, or permit an auditor to audit, for the benefit of the Acquiror.

6. <u>Patent Prosecution and Maintenance</u>.

6.1 <u>Patent Prosecution and Maintenance</u>. Subject to <u>Section 6.2</u>, for each patent application and patent included within the Patents, the Acquiror shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) prepare,
 file, prosecute, and maintain all applications and registrations for the Patent (each a **Prosecution Action**), including without limitation selection of filing jurisdictions and any amendment,
 using reasonable care and skill and using counsel reasonably acceptable to Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall
 solicit and consider in good faith all input including request of Corporation in making decisions
 relating to Prosecution Actions, but is permitted to give equal weight to the input of the
 Corporation, input of the Bitumen Innovation Entity, and Acquiror's own input;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) keep
 the Corporation informed of the filing and progress of all aspects of the prosecution of
 such patent application and the issuance of patents from any such patent application;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) provide
 the Corporation with a copy of such patent application, amendments thereto, and other related
 correspondence to and from patent offices, and, to the extent reasonably practicable, permit
 the Corporation an opportunity to offer its input thereon before making a submission to a
 patent office, and the Acquiror shall consider such input in good faith pursuant to <u>Section 6.1(b)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) consult
 with the Corporation concerning any decisions that could affect the scope or enforcement
 of any issued claims or the potential abandonment of such patent application or patent and
 permit the Corporation an opportunity to offer its input before implementing any such decisions,
 and the Acquiror shall consider such input in good faith pursuant to <u>Section 6.1(b)</u>;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) notify
 the Corporation in writing of any changes in the scope or status of such patent or patent
 application.

6.2 <u>Independent Action</u>. In the event that the Acquiror declines to take a Prosecution Action, as requested by the Corporation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Acquiror shall notify the Corporation in writing, to the extent possible, at least 30 days
 in advance of the due date of the declined Prosecution Action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 Corporation has the right to require the Acquiror to take the declined Prosecution Action
 provided that the Corporation agree to bears all costs for the Prosecution Action (the **Independent Action**). The Acquiror shall take the Independent Action at the Corporation's request,
 to the extent reasonable and to the extent the Independent Action does not prejudice the
 rights of the Acquiror.

6.3 <u>Costs</u>. Subject to <u>Section 6.2</u>, the Parties agree that all reasonable expenses incurred by the Acquiror after the Effective Date for Prosecution Actions will be shared in equal parts by the Corporation, the Acquiror, and the Bitumen Innovation Entity, with the exception of expenses for Independent Actions pursuant to <u>Section 6.2</u> which shall be borne solely by the Corporation. The Corporation shall reimburse the Acquiror for its portion of the foregoing expenses within 30 days receiving from the Acquiror documentation evidencing such expenses.

7. <u>Enforcement of Intellectual Property Rights</u>.

7.1 <u>Notice of Infringement or Third-Party Claims</u>. If either Party becomes aware of any suspected infringement of any Patent in the Residual Field by a third party in the Territory (an **Infringement**), such Party shall promptly notify the other Party and provide it with all details of such Infringement, as applicable, that are known by such Party.

7.2 <u>Right to Bring Action</u>. The Acquiror shall have the first right, but not the obligation, to take action in the prosecution, prevention, or termination of any Infringement. If the Acquiror does not take action in the prosecution, prevention, or termination of any Infringement pursuant to this <u>Section 7.2</u>, and has not commenced negotiations with the infringer for the discontinuance of said Infringement, within 90 days after receipt of notice to the Acquiror by the Corporation of the existence of an Infringement, the Corporation may elect to do so.

7.3 <u>Cooperation, Recovery, and Settlement</u>. In the event a Party undertakes the enforcement of any intellectual property rights in accordance with <u>Section 7.2</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 other Party shall provide all reasonable cooperation and assistance, including providing
 access to relevant documents and other evidence, making its employees available at reasonable
 business hours, and being joined as a party to such action as necessary to establish standing,
 provided that such Party reimburses the other Party promptly for any costs and expenses incurred
 in connection with providing such assistance, including reasonable attorneys' fees;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) such
 Party may settle any such suit, action, or other proceeding, whether by consent order, settlement,
 or other voluntary final disposition, without the prior written approval of the other Party,
 provided that the Corporation shall not settle any such suit, action, or other proceeding
 in a manner that adversely affects the rights of the Acquiror concerning the Carbon Fibre
 Technology without the Acquiror's prior written consent.

7.4 <u>Recovery</u>. Any recovery, damages, or settlement funds derived from enforcement of intellectual property rights in accordance with <u>Section 7.2</u> will be retained by the enforcing Party.

7.5 <u>Invalidity or Unenforceability</u>. If any suit, action, or other proceeding alleging invalidity or unenforceability of any patent claim with the Patents is brought against the Corporation or any sublicensee, the Corporation shall promptly notify the Acquiror in writing and the Acquiror, at its option, will have the right, within 30 days of receiving such notice, to take over the sole defense of the invalidity and/or unenforceability aspect of the suit, action, or other proceeding at its own expense.

8. <u>Compliance with Laws</u>.

8.1 <u>Recordation of Agreement</u>. If recordation of this Agreement or any part of it with a national or supranational Governmental Authority is necessary for the Acquiror to fully enjoy the rights, privileges, and benefits of this Agreement, then the Acquiror may, at its own expense, record this Agreement or all such parts of this Agreement and information concerning the rights granted to the Acquiror hereunder with each such appropriate national or supranational Governmental Authority.

9. <u>Confidentiality</u>.

9.1 <u>Confidentiality Obligations</u>. Each Party (the **Receiving Party**) acknowledges that in connection with this Agreement it will gain access to Confidential Information of the other Party (the **Disclosing Party**). As a condition to being furnished with Confidential Information, the Receiving Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) not
 use the Disclosing Party's Confidential Information other than as strictly necessary
 to exercise its rights and perform its obligations under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain
 the Disclosing Party's Confidential Information in strict confidence and, subject to <u>Section 9.2</u>, not disclose the Disclosing Party's Confidential Information without
 the Disclosing Party's prior written consent, provided, however, the Receiving Party
 may disclose the Confidential Information to its Representatives who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have
 a need to know the Confidential Information for purposes of the Receiving Party's performance,
 or exercise of its rights with respect to such Confidential Information, under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) have
 been apprised of this restriction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) are
 themselves bound by written nondisclosure agreements at least as restrictive as those set
 out in this <u>Article 9</u>, provided further that the Receiving Party will be responsible
 for ensuring its Representatives' compliance with, and will be liable for any breach
 by its Representatives of, this <u>Article 9</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use
 reasonable care, at least as protective as the efforts it uses with respect to its own confidential
 information, to safeguard the Disclosing Party's Confidential Information from use
 or disclosure other than as permitted hereby.

9.2 <u>Exceptions</u>. If the Receiving Party becomes legally compelled to disclose any Confidential Information, the Receiving Party shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) provide
 prompt written notice to the Disclosing Party so the Disclosing Party may seek a protective
 order or other appropriate remedy or waive its rights under <u>Article 9</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) disclose
 only the portion of Confidential Information it is legally required to furnish.

If a protective order or other remedy is not obtained, or the Disclosing Party waives compliance under <u>Article 9</u>, the Receiving Party shall, at the Disclosing Party's expense, use reasonable efforts to obtain assurance that confidential treatment will be afforded the Confidential Information.

10. <u>Representations and Warranties</u>.

10.1 <u>Mutual Representations and Warranties</u>. Each Party represents and warrants to the other Party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it
 is duly organized, validly existing, and in good standing as a corporation or other entity
 as represented herein under the laws and regulations of its jurisdiction of incorporation,
 organization, or chartering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 has, and throughout the Term will retain, the full right, power, and authority to enter into
 this Agreement and to perform its obligations hereunder and this Agreement has been validly
 executed and delivered, and it and all other documents executed and delivered by or on behalf
 of such Party pursuant hereto shall constitute legal, valid and binding obligations of such
 Party enforceable in accordance with their respective terms and conditions, except as such
 enforceability may be limited by Laws affecting the enforcement of creditors' rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 execution of this Agreement by its representative whose signature is set forth at the end
 hereof has been duly authorized by all necessary corporate action of the Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) when
 executed and delivered by such Party, this Agreement will constitute the legal, valid, and
 binding obligation of that Party, enforceable against that Party in accordance with its terms,
 except as such enforceability may be limited by Laws affecting the enforcement of creditors'
 rights.

10.2 <u>Corporation's Representations and Warranties</u>. Corporation represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with
 the exception of any right, title, or interest subject of the Bitumen Technology Transfer
 Agreement, it is the sole legal and beneficial owner of, and owns all the rights and interests
 in and to the Activated Carbon Technology, Carbon Fibre Technology and the Solid Bitumen
 Technology and, by virtue of the assignment of <u>Section 2.1</u>, Acquiror shall be the
 sole and exclusive owner of the entire right, title, and interest in and to the Activated
 Carbon Technology, Carbon Fibre Technology and the Solid Bitumen Technology, including the
 Patent and the Know-How, free and clear of any pledges, liens, charges, adverse claims or
 encumbrances of any kind or character whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it
 has the right to assign, grant, transfer and convey the rights assigned, granted, transferred,
 and conveyed to the Acquiror hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with
 the exception of any right, title, or interest subject of the Bitumen Technology Transfer
 Agreement or the Security Agreements, it has not granted, and is not under any obligation
 to grant, to any third party any license, lien, option, encumbrance, or other contingent
 or non-contingent right, title, or interest in or to the Patent and Know-How;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with
 the exception of any right, title, or interest subject of the Bitumen Technology Transfer
 Agreement or the Security Agreements, the Corporation has not granted to any person any right,
 license or permission to use all or any portion of, or otherwise encumbered any of its rights
 in, or to, any of the Activated Carbon Technology, Carbon Fibre Technology or the Solid Bitumen
 Technology. There are no outstanding rights of first refusal or other pre-emptive rights
 of license or purchase which entitle any person to acquire any of right to or interest in
 any of the Activated Carbon Technology, Carbon Fibre Technology or the Solid Bitumen Technology,
 including the Patent or the KnowHow, that will be triggered or accelerated by the completion
 of the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) neither
 the execution and delivery of this Agreement nor the assignment in accordance with the provisions
 of this Agreement constitute a default under, or result in a contravention or breach of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 applicable Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 agreement or instrument to which the Corporation is a party or by which it is bound;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) no
 shareholder, debtholder or other third party consents, approvals or authorizations of any
 nature are required to be obtained in connection with the transactions contemplated by this
 Agreement that have not yet been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) to
 Corporation's knowledge, no third party intellectual property rights have been violated
 or will be violated upon Corporation entering into or performing this Agreement. To Corporation's
 knowledge, none of the Activated Carbon Technology, Carbon Fibre Technology and the Solid
 Bitumen Technology, including the Patent and the Know-How, infringe, misappropriate, or otherwise
 violate any third party intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) it
 has not entered into, and will not enter into, any other agreement with a third party in
 conflict or inconsistent with the terms and conditions of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Corporation has taken all reasonable steps to protect its rights in and to the Activated
 Carbon Technology, the Carbon Fibre Technology, and the Solid Bitumen Technology, in each
 case in accordance with industry practice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) no
 claims have been asserted or are threatened by any person alleging that the conduct of the
 Corporation's business, including the use of the intellectual property owned by, licensed
 to or used by the Corporation, infringes upon any of their intellectual property rights.
 To the knowledge of the Corporation, there are no valid grounds for any such bona fide claims
 by any such persons alleging a conflict with or infringement of their Intellectual property
 rights. There is no settled, pending, or to the Corporation's knowledge threatened
 litigation, challenge, claim, or proceeding alleging that any Patent is invalid or unenforceable,
 and it has no knowledge after reasonable investigation of any factual, legal, or other reasonable
 basis for any such litigation, challenge, claim, or proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) all
 current and former employees and consultants of the Corporation whose duties or responsibilities
 relate to the Activated Carbon Technology, the Carbon Fibre Technology, or the Solid Bitumen
 Technology have entered into confidentiality, intellectual property assignment and proprietary
 information agreements with and in favour of the Corporation. Each such person has waived

 it on behalf of the Corporation.

10.3 <u>Acquiror's Representations and Warranties</u>. Acquiror represents and warrants that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as
 of the Effective Date and immediately prior to the issuance of the New Consideration Shares
 to the Corporation, the only securities issued and outstanding in the authorized capital
 of the Acquiror, calculated on a non-diluted and fully-diluted basis, will be an aggregate
 of 78,000,000 class A voting common shares in the authorized capital of Acquiror;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) on
 the Effective Date, the New Consideration Shares will be validly issued, fully paid, and
 non-assessable shares in the authorized capital of the Acquiror;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) on
 the Effective Date, the Corporation will become the legal and beneficial owner of the New
 Consideration Shares and will own the New Consideration Shares free and clear of any pledges,
 liens, charges, adverse claims or encumbrances of any kind or character whatsoever;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) no
 Person, other than the Corporation pursuant to this Agreement, has any agreement or option
 or any right capable of becoming an agreement or option to acquire the New Consideration
 Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) no
 shareholder, director, debtholder or other third party consents, approvals or authorizations
 of any nature are required to be obtained in connection with the transactions contemplated
 by this Agreement that have not yet been obtained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Acquiror will retain, throughout the Term, the right to grant, transfer and convey the rights
 granted, transferred, and conveyed to the Corporation hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) neither
 the execution and delivery of this Agreement nor the issuance of the New Consideration Shares
 in accordance with the provisions of this Agreement constitute a default under, or result
 in a contravention or breach of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any
 applicable Law; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any
 agreement or instrument to which the Acquiror is a party or by which it is bound; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the
 Acquiror is not a non-Canadian resident as contemplated by the ITA.

11. <u>Exclusion of Consequential and Other Indirect Damages</u>. TO THE FULLEST EXTENT PERMITTED BY LAW, NEITHER THE CORPORATION NOR THE ACQUIROR WILL BE LIABLE TO THE OTHER OR ANY OTHER PERSON FOR ANY INJURY TO OR LOSS OF GOODWILL, REPUTATION, BUSINESS PRODUCTION, REVENUES, PROFITS, ANTICIPATED PROFITS, CONTRACTS, OR OPPORTUNITIES (REGARDLESS OF HOW THESE ARE CLASSIFIED AS DAMAGES), OR FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, PUNITIVE, OR ENHANCED DAMAGES, WHETHER ARISING OUT OF BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, PRODUCT LIABILITY, OR OTHERWISE (INCLUDING THE ENTRY INTO, PERFORMANCE, OR BREACH OF THIS AGREEMENT), REGARDLESS OF WHETHER SUCH LOSS OR DAMAGE WAS FORESEEABLE AND THE PARTY AGAINST WHOM LIABILITY IS CLAIMED HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED REMEDY OF ITS ESSENTIAL PURPOSE.

12. <u>Indemnification</u>.

12.1 <u>Indemnification</u>. Each Party (the **Indemnitor**) shall indemnify, defend, and hold harmless the other Party and its officers, directors, employees, agents, successors, and assigns (each, an **Indemnitee**) against all Losses arising out of or resulting from any third-party claim, suit, action, or proceeding (each a **Third-Party Action**) related to, arising out of, or resulting from Indemnitor's breach of any representation, warranty, covenant, or obligation under this Agreement.

12.2 <u>Corporation's Indemnification</u>. The Corporation shall indemnify defend, and hold harmless the Acquiror and its officers, directors, employees, agents, successors, and assigns against all Losses arising out of or resulting from any Third-party Action related to, arising out of, or resulting from the Corporation's use, sale, transfer, or other disposition by the Corporation or its sublicensee of the Products or the Process.

12.3 <u>Indemnification Procedure</u>. An Indemnitee shall promptly notify the Indemnitor in writing of any Third-party Action and cooperate with Indemnitor at the Indemnitor's sole cost and expense. The Indemnitor shall immediately take control of the defense and investigation of the Third-party Action and shall employ counsel reasonably acceptable to Indemnitee to handle and defend the same, at the Indemnitor's sole cost and expense. The Indemnitor shall not settle any Third-party Action in a manner that adversely affects the rights of any Indemnitee without the Indemnitee's prior written consent. The Indemnitee's failure to perform any obligations under this <u>Section 12.3</u> shall not relieve the Indemnitor of its obligation under this <u>Section 12.3</u> except to the extent the Indemnitor can demonstrate that it has been materially prejudiced as a result of the failure. The Indemnitee may participate in and observe the proceedings at its own cost and expense with counsel of its own choosing.

13. <u>Term</u>.

13.1 <u>Term</u>. This Agreement is effective as of the Effective Date and, subject to the termination of the licenses in accordance with <u>Section 13.2,</u> will continue in full force and effect on a Product-by-Product and country-by-country basis until the expiration of the last to expire Valid Claim of a Patent in such country (the **Term**).

13.2 <u>Termination</u>. The Corporation may terminate the licenses contemplated by <u>Section 3</u> of this Agreement at any time without cause, and without incurring any additional obligation, liability, or penalty, by providing at least 60 days' prior written notice to the Acquiror. For greater certainty, termination of the licenses in accordance with this Section shall in no way reverse or impair the assignment of rights to the Acquiror under <u>Section 2.1</u>. Upon termination of such licenses in accordance with this Section, the rights and obligations of the Parties as set forth in Sections 2.3, 3.1, 3.2, 3.3, 6, 7 shall be of no further force or effect.

13.3 <u>Sell-Off Period</u>. For a period of 90 days after the effective date of the termination of the licenses in accordance with <u>Section 13.2</u> (the **Sell-Off Period**), the Corporation and its sublicensees, will have the right to sell or otherwise dispose of all existing Products in its possession, custody, or control and to complete the manufacture of and sell or otherwise dispose of all Products in the course of manufacture as of the effective date of termination, in each case, in accordance with the applicable terms and conditions of this Agreement.

13.4 <u>Survival</u>. The rights and obligations of the Parties set forth in this <u>Section 13.4</u> and <u>Section 1</u> (Interpretation), <u>Section 9</u> (Confidentiality), <u>Section 10</u> (Representations and Warranties), <u>Section 11</u> (Exclusion of Consequential and Other Indirect Damages), <u>Section 12</u> (Indemnification), <u>Section 13.3</u> (Sell-off Period) and <u>Section 14</u> (Miscellaneous), and any right, obligation, or required performance of the Parties in this Agreement which, by its express terms or nature and context is intended to survive expiration of the Term, will survive any such expiration.

14. <u>Miscellaneous</u>.

14.1 <u>Further Assurances</u>. Each Party shall, upon the reasonable request, and at the sole cost and expense, of the other Party, execute such documents and take such further actions as may be necessary to give full effect to the terms of this Agreement.

14.2 <u>Independent Contractors</u>. The relationship between the Parties is that of independent contractors. Nothing contained in this Agreement creates any agency, partnership, joint venture, or other form of joint enterprise, employment, or fiduciary relationship between the Parties, and neither Party has authority to contract for or bind the other Party in any manner whatsoever.

14.3 <u>No Public Statements</u>. Neither Party may issue or release any announcement, statement, press release, or other publicity or marketing materials relating to this Agreement or, unless expressly permitted under this Agreement, otherwise use the other Party's trademarks, service marks, trade names, logos, domain names, or other indicia of source, association, or sponsorship, in each case, without the prior written consent of the other Party.

14.4 <u>Notices</u>. All notices, requests, consents, claims, demands, waivers, and other communications (other than routine communications having no legal effect) must be in writing and sent to the respective Party at the addresses indicated below (or such other address for a Party as may be specified in a notice given in accordance with this <u>Section 13.4</u>):

---

| | |
|:---|:---|
| If to Corporation: | 9407-3 20 Avenue NW<br> Edmonton, Alberta<br> T6N 1E5<br>Telephone: +1 (780)-395-7919<br>E-mail: yanguang.yuan@adven-industries.com<br> Attention: Yanguang Yuan |
| If to Acquiror: | 1400, 350 – 7 Avenue SW<br> Calgary, Alberta<br> T2P 3N9<br>Telephone: +1 (780)-395-7919<br>E-mail: weixing.chen@adven-industries.com<br>Attention: Weixing Chen |

---

Notices sent in accordance with this <u>Section 14.4</u> will be deemed effective: (a) when received or delivered by hand (with written confirmation of receipt); (b) when received, if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail (in each case, with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business Day if sent after normal business hours of the recipient; or (d) on the fifth Business Day after the date mailed, by certified or registered mail, return receipt requested, postage prepaid.

14.5 <u>Entire Agreement</u>. This Agreement, together with all Schedules and any other documents incorporated herein by reference, amends, restates, and replaces the Original Agreement in its entirety, constitutes the sole and entire agreement of the Parties with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, both written and oral, with respect to such subject matter. In the event of any conflict between the terms and provisions of this Agreement and those of any Schedule or other document, the following order of precedence will govern: (a) first, this Agreement, excluding its Schedules; and (b) second, the Schedules to this Agreement as of the Effective Date.

14.6 <u>Assignment</u>. Each Party (the **Assignor**) may freely assign or otherwise transfer all of its rights, or delegate or otherwise transfer all of its obligations or performance, under this Agreement to a third party

(the **Assignee**) without the other Party's consent provided the Assignee agrees to all the covenants and obligations of this Agreement and takes the place of the Assignor with respect to this Agreement. This Agreement is binding upon and inures to the benefit of the Parties hereto and their respective permitted successors and assigns. No delegation or other transfer will relieve a Party of any of its obligations or performance under this Agreement. Any purported assignment, delegation, or transfer in violation of this <u>Section 14.6</u> is void.

14.7 <u>No Third-Party Beneficiaries</u>. This Agreement is for the sole benefit of the Parties and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or will confer upon any other Person any legal or equitable right, benefit, or remedy of any nature whatsoever, under, or by reason of this Agreement.

14.8 <u>Amendment; Modification; Waiver</u>. This Agreement may only be amended, modified, or supplemented by an agreement in writing signed by each Party. No waiver by any Party of any of the provisions hereof will be effective unless explicitly set forth in writing and signed by the waiving Party. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power, or privilege arising from this Agreement will operate or be construed as a waiver thereof; nor will any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.

14.9 <u>Severability</u>. If any term or provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability will not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon a determination that any term or other provision is invalid, illegal, or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

14.10 <u>Legal Advice.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 Party acknowledges, confirms, and agrees that Lindsey MacCarthy LLP (**LinMac**):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has
 acted as legal counsel to both Parties on various matters prior to the Effective Date, including
 the transactions pursuant to which the Acquiror acquired the Carbon Fibre Technology from
 the Corporation under the Original Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is
 currently acting as the Corporation's legal counsel on various matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) is
 currently acting as the Acquiror's legal counsel on various matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) has
 been involved in the preparation of this Agreement jointly on behalf of the Parties at the
 Parties' request; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) will
 continue to act as legal counsel to each of the Parties from time to time after the Effective
 Date on various matters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 that LinMac has been involved in the preparation of this Agreement jointly on behalf of the
 Parties at the Parties' request, each Party: (i) has had the opportunity to seek and
 was not prevented nor discouraged by any person from seeking independent legal, tax, and
 financial advice prior to the execution and delivery of this Agreement; and (ii) agrees that
 any failure to obtain independent legal advice shall not be used as a defence to the enforcement
 of its obligations under this Agreement or the basis of a claim against any person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Parties consent and agree to LinMac acting as legal counsel to the Corporation in any dispute
 arising under or in connection with this Agreement, even though the interests of the Corporation
 may be directly adverse to the interests of the Acquiror. The Parties further consent and
 agree to any communication by LinMac to the Corporation in connection with any such representation
 of any fact known to LinMac arising by reason of LinMac's prior representation of the
 Acquiror.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 connection with the provisions of this <u>Section 14.10</u>, each Party hereby irrevocably
 waives and agrees not to assert any conflict of interest arising from or in connection with:

&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) LinMac's prior representation of the other Party; and (ii) LinMac's representation of the other Party after the Effective Date.

14.11 <u>Governing Law; Submission to Jurisdiction</u>. This Agreement shall be governed by and construed in accordance with the laws of the Province of Alberta and the laws of Canada applicable therein, without regard to conflict of law principles. Any claim or dispute arising from or under this Agreement must be brought in the City of Edmonton, Alberta and each Party attorns to the jurisdiction of the courts of Alberta with respect to any claim or dispute arising from this Agreement.

14.12 <u>Counterparts</u>. This Agreement may be executed in one or more counterparts, including counterparts executed by way of electronic signature, each of which so executed shall constitute an original and all of which together shall constitute one and the same agreement. The Parties shall be entitled to rely on delivery of a copy delivered by facsimile or other means of electronic transmission (including by way of DocuSign or other similar application) of the executed Agreement and such electronically transmitted copy shall be legally effective to create a valid and binding agreement.

[remainder of page intentionally left blank]

**IN WITNESS WHEREOF**, the Parties have caused this Agreement to be executed as of the date first written above by their respective duly authorized representatives.

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| Per: | /s/ R. Michael Steele |

---

Name: R. Michael Steele <br> Title: Chief Financial Officer

---

| | |
|:---|:---|
| Per: | /s/ Arni Johannson |

---

Name: Arni Johannson <br> Title: Director

**TANGOLD INC.**

---

| | |
|:---|:---|
| Per: | /s/ Weixing Chen |

---

Name: Weixing Chen <br> Title: Director

---

| | |
|:---|:---|
| Per: | /s/ Yanguang Yuan |

---

Name: Yanguang Yuan <br> Title: Director

**<u>SCHEDULE A</u>**

**<u>Elected Amount in connection with the Original Agreement</u>**

Property Transferred:

---

| | | | |
|:---|:---|:---|:---|
| Property Transferred | Cost Amount | Elected Amount | Fair Market Value |
| Carbon Fibre Technology | C$[•] | C$[•] | C$450,000.00 |

---

Consideration Received:

---

| | | | |
|:---|:---|:---|:---|
| Number and Class of Original Consideration Shares | Cost Amount | Paid Up Capital | Fair Market Value |
| 26,000,000 class A voting common shares in the authorized capital of the Acquiror | C$[•] | C$[•] | C$450,000.00 |

---

**<u>Elected Amount in connection with this Agreement</u>**

Property Transferred:

---

| | | | |
|:---|:---|:---|:---|
| Property Transferred | Cost Amount | Elected Amount | Fair Market Value |
| &nbsp;&nbsp;The Corporation's remaining interest in the Activated Carbon<br> Technology, Carbon Fibre<br> Technology and the Solid Bitumen Technology, including the Patent and Know-How, but<br> subject to the terms of this<br> Agreement | C$[•] | C$[•] | C$250,003.65 |

---

Consideration Received:

---

| | | | |
|:---|:---|:---|:---|
| Number and Class of New <br> Consideration Shares | Cost Amount | Paid Up Capital | Fair Market Value |
| 1,150,500 class A voting common shares in the authorized capital of the Acquiror | C$[•] | C$[•] | C$250,003.65 |

---

**<u>SCHEDULE B</u>**

**Assignment and Assumption Agreement**

**(*see attached)***

**ASSIGNMENT AND ASSUMPTION AGREEMENT** 

This Assignment and Assumption Agreement dated effective as of May ____, 2022 (the **Effective Date**) is by and between AdvEn Industries Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (**Assignor**), Tangold Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (**Assignee**), and AdvEn Bitumen Innovation Inc., an Alberta corporation, with offices located in the City of Edmonton, Province of Alberta (**Adven Bitumen**) (collectively, the **Parties** or each individually, a **Party**).

**WHEREAS**:

&nbsp;&nbsp;&nbsp;&nbsp;A. The
 Assignor and Adven Bitumen are parties to a Technology Acquisition Agreement dated effective
 as of February 5, 2021, attached hereto as <u>Schedule A</u> (**Technology Acquisition Agreement**),
 pursuant to which the Assignor granted, transferred, and conveyed to Adven Bitumen certain
 rights to use and exploit technology and intellectual property.

&nbsp;&nbsp;&nbsp;&nbsp;B. The
 Assignee has acquired all rights, title and interest in the technology and intellectual property
 subject of the Technology Acquisition Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;C. The
 Assignor desires to assign its right and interest in the Technology Acquisition Agreement
 to the Assignee.

&nbsp;&nbsp;&nbsp;&nbsp;D. The
 Assignee desires, in consideration of the assignment of the Technology Acquisition Agreement
 being accepted by Adven Bitumen, to give its covenant to Adven Bitumen to carry out and fulfill
 all the covenants and conditions in the Technology Acquisition Agreement as agreed by the
 Assignor.

**NOW THEREFORE**, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Assignor and Adven Bitumen each represent to the Assignee that the Technology Acquisition Agreement is unamended and in full force and effect, and that neither Assignor nor Adven Bitumen is breach of its obligations thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Each of the Parties represents to the other Parties that the execution of this Assignment and Assumption Agreement by its representative whose signature is set forth at the end hereof has been duly authorized by all necessary corporate action of the Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Assignor hereby assigns, transfers and sets over unto the Assignee all of the Assignor's right and interest in and to the Technology Acquisition Agreement and all benefit and advantage to be derived therefrom, to have and to hold the same unto the Assignee for the Assignee's sole use and benefit absolutely subject to the performance and observance thereafter by the Assignee of the terms, covenants and conditions contained in the Technology Acquisition Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The Assignee accepts the assignment of the Technology Acquisition Agreement and covenants and agrees with the Assignor and Adven Bitumen that the Assignee shall be bound by, observe and perform all of the covenants and obligations of the Assignor relating to the Technology Acquisition Agreement, to the same extent as if the Assignee was named as a party to the Technology Acquisition Agreement in the place and stead of the Assignor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Assignor agrees with Adven Bitumen that neither the execution of this Assignment and Assumption Agreement nor the acceptance thereof by Adven Bitumen shall in any way release it from any of its liabilities or obligations whatsoever and now existing or hereafter arising pursuant to the Technology Acquisition Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Adven Bitumen consents to the within assignment of the Technology Acquisition Agreement provided that neither that consent, nor anything else in this agreement, shall release, relieve or discharge the Assignor from any covenant, obligation or liability accruing on its part under the Technology Acquisition Agreement; and covenants and agrees that the Assignee shall be entitled to hold and enforce all of the rights, benefits and privileges of the Assignor under the Technology Acquisition Agreement, and shall be entitled to perform all of the covenants and obligations of the Assignor under the Technology Acquisition Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The addresses of the Assignee for notices and other communications under the Technology Acquisition Agreement shall be:

1400, 350 – 7 Avenue SW, Calgary, Alberta, T2P 3N9

Telephone: +1 (780)-395-7919

E-mail: yanguang.yuan@adven-industries.com

Attention: Yanguang Yuan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. Each of the Parties hereto shall from time to time and at all times hereafter do and perform all such further acts, and execute and deliver all such further assignments, notices, releases and other documents and instruments, and give all such further assurances, as may reasonably be required to more fully effect and assure the assignment and assumption of the Technology Acquisition Agreement and the terms of this Assignment and Assumption Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. This Assignment and Assumption Agreement shall enure to the benefit of and be binding upon Parties hereto and their respective successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. This Assignment and Assumption Agreement shall be governed by and construed in accordance with the laws of the Province of Alberta and the laws of Canada applicable therein, without regard to conflict of law principles. Any claim or dispute arising from or under this Assignment and Assumption Agreement must be brought in the City of Edmonton, Alberta and each party attorns to the jurisdiction of the courts of Alberta with respect to any claim or dispute arising from this Assignment and Assumption Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. This Assignment and Assumption Agreement may be executed in one or more counterparts, including counterparts executed by way of electronic signature, each of which so executed shall constitute an original and all of which together shall constitute one and the same agreement. The Parties shall be entitled to rely on delivery of a copy delivered by facsimile or other means of electronic transmission (including by way of DocuSign or other similar application) of the executed agreement and such electronically transmitted copy shall be legally effective to create a valid and binding agreement

[remainder of page intentionally left blank]

**IN WITNESS WHEREOF**, the Parties have caused this Assignment and Assumption Agreement to be executed as of the date first written above by their respective duly authorized representatives.

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| Per: | /s/ Yanguang Yuan |
|  | Name: Yanguang Yuan |
|  | Title: Director |
| **TANGOLD INC.** | **TANGOLD INC.** |
| Per: | /s/ Weixing Chen |
|  | Name: Weixing Chen |
|  | Title: Director |
| **ADVEN BITUMEN INNOVATION INC.** | **ADVEN BITUMEN INNOVATION INC.** |
| Per: | /s/ Yanguang Yuan |
|  | Name: Yanguang Yuan |
|  | Title: Director |

---

**<u>SCHEDULE A</u>**

See attached.

**<u>SCHEDULE C</u>**

**Promissory Note and Letter Agreement**

**(*see attached)***

**UNSECURED GRID PROMISSORY NOTE** 

**ISSUE DATE:** May [•], 2022

For value received, the undersigned, Tangold Inc. (the **Debtor**), acknowledges itself indebted to and does hereby unconditionally promise to pay to, or to the order of AdvEn Industries Inc. (the **Lender**), the aggregate amount of the principal advances made by the Lender to the Debtor from time to time as recorded on the grid attached hereto as <u>Schedule "A"</u> (the **Grid Table**) in lawful money of Canada (collectively, the **Principal Amount**) together with interest, if any, as follows:

1. <u>Recording of Indebtedness</u>. The Debtor acknowledges, confirms and agrees with the Lender that the
 Lender is hereby authorized and instructed to record the date, amount, amount unpaid, interest
 rate and aggregate unpaid balance of or in respect of any advances outstanding as of the
 date hereof and of each and every further advance and re-advance by the Lender to the Debtor
 made in connection herewith within the Grid Table, and that, in the absence of conclusive
 evidence to the contrary, all amounts recorded by the Lender in the Grid Table will be valid
 and binding upon the Debtor and will be conclusive evidence of the Principal Amount and interest,
 if any, owing by the Debtor to the Lender from time to time in connection with this promissory
 note (the **Note**). The Lender will forward written notice, including notice by e-mail
 or other electronic transmission, of any recording made in respect of the Grid Table to the
 Debtor.

2. <u>Maturity</u>.
 Unless otherwise consented to in writing by the Lender in the Lender's full and unfettered
 discretion, the Principal Amount, other than the Initial Advanced Amount as defined in the
 Grid Table, shall be paid in full within 10 calendar days written notice from the Lender
 in respect thereof. Notwithstanding the foregoing, the Debtor acknowledges and agrees that
 it must repay the Initial Advanced Amount to the Lender by the date that is no later than
 the earlier of: (i) 2 business days following the completion of an equity financing of 2396723
 Alberta Ltd., operating as Thread Innovations, or an affiliate thereof, for minimum proceeds
 of $2.0 million; and (ii) 120 calendar days after the Issue Date referenced above.

3. <u>Interest</u>.
 Unless otherwise provided for in the Grid Table and agreed to by the Debtor, the Principal
 Amount shall not bear interest.

4. <u>Pre-Payment</u>.
 The Debtor shall have the right to pay any or all amounts owing hereunder at any time prior
 to the applicable maturity date as determined in accordance with Section 2 hereof without
 notice, bonus, or penalty.

5. <u>Unsecured Obligation.</u> This Note shall be an unsecured obligation of the Debtor.

6. <u>Waiver</u>.
 The Debtor hereby waives presentment for payment, notice of non-payment, protest, and notice
 of protest and any other condition precedent to action against it for the payment of any
 and all indebtedness owing under this Note. The failure of the Lender to exercise any of
 the Lender's rights hereunder in any instance shall not constitute a waiver thereof
 in that or any other instance.

7. <u>Assignment</u>.
 The Lender may not assign or transfer any or all of its rights, title, or interest in, to
 and under this Note to any person without the prior written consent of the Debtor, which
 consent may not be unreasonably withheld, delayed, or conditioned. The Debtor shall not assign
 any or all of its obligations hereunder without the prior written consent of the Lender.

8. <u>Enurement</u>.
 This Note shall be binding upon the Debtor and shall enure to the benefit of the Lender and
 their respective successors and permitted assigns.

9. <u>Severability</u>.
 If any provision of this Note is determined to be invalid or unenforceable in whole or in
 part, such invalidity or unenforceability shall attach only to such provision or part thereof
 and the remaining part of such provision and all other provisions hereof shall continue in
 full force and effect. To the extent permitted by applicable law the Debtor hereby waives
 any provision of law that renders any provision hereof prohibited or unenforceable in any
 respect.

10. <u>Governing Law and Attornment</u>. This Note shall be governed by and construed in accordance with the
 laws of the Province of Alberta and the laws of Canada applicable therein. The Debtor hereby
 attorns and submits to the non-exclusive jurisdiction of the courts of the Province of Alberta.

11. <u>Execution.</u> This Note may be executed by way of electronic signature. The Lender shall be entitled
 to rely on a copy delivered by facsimile or other means of electronic transmission (including
 by way of DocuSign or other similar application) and such electronically transmitted copy
 shall be legally effective to create a valid and binding obligation. Notwithstanding the
 foregoing, the Debtor will promptly provide a wet-ink signature to the Lender at the Lender's
 request.

---

| | |
|:---|:---|
| **TANGOLD INC.** | **TANGOLD INC.** |
| Per: | /s/ Weixing Chen |
|  | Name: Weixing Chen |
|  | Title: Director |

---

**<u>Schedule "A"</u>**

**<u>GRID TABLE</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| Date | Amount<br> Advanced | Business<br> Purpose | Interest<br> Rate | Interest<br> Accrued | Interest<br> Paid | Aggregated<br> Unpaid<br>Balance |
| As at the Issue Date of this Note | $425963.63 | See Exhibit 1 | N/A Nil | N/A | N/A | $425,963.63<br> (the **Initial** <br> **Advanced** <br> **Amount**) |

---

Exhibit 1

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Unique<br> Indicator** | Date | Related Vendor | Amount<br> Advanced | Business<br> Purpose | Interest<br> Rate | Amount<br> Repaid | Interest<br> Accrued | Aggregated<br> Unpaid<br> Balance |
| A.I. Payment | 10/Oct/21 | Alberta Innovates Grant | $- | Grant Capital Received by AdvEn | 0.0% | $11000.00 | $– $– -$| 11000.00 |
| CRIN Payment | 4/Nov/21 | CRIN Grant | $- | Grant Capital Received by AdvEn | 0.0% | $89000.00 | $– $– -$| 89000.00 |
| Feb Invoice | 1/Feb/21 | SHAW CABLE-030-9242-5107 | $119.00 | Miscellaneous G&A | 0.0% | $- | $– $– $| 119.00 |
| February Rent | 1/Feb/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $- | $– $– $| 2256.48 |
| February Rent-Op | 1/Feb/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $- | $– $– $| 1277.87 |
| 6992-S | 28/Feb/21 | 02-Feb 2021 - Salary allocations | $10791.29 | Salaries & Employee Expenses | 0.0% | $- | $– $– $| 10791.29 |
| 6992 | 28/Feb/21 | 02-Feb 2021 - CPP and EI allocations | $646.02 | Salaries & Employee Expenses | 0.0% | $- | $– $– $| 646.02 |
| March Rent | 1/Mar/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $- | $– $– $| 2256.48 |
| March Rent-Op | 1/Mar/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $- | $– $– $| 1277.87 |
| February 2021- TW7 | 3/Mar/21 | Tianfei Wang(reimbursement) | $332.63 | Miscellaneous G&A | 0.0% | $- | $– $– $| 332.63 |
| February 2021-- TW6 | 3/Mar/21 | Tianfei Wang(reimbursement) | $5.97 | Miscellaneous G&A | 0.0% | $- | $– $– $| 5.97 |
| 6996-S | 31/Mar/21 | 03-Mar 2021 - Salary allocations | $8480.00 | Salaries & Employee Expenses | 0.0% | $- | $– $– $| 8480.00 |
| 6996 | 31/Mar/21 | 03-Mar 2021 - CPP and EI allocations | $486.46 | Salaries & Employee Expenses | 0.0% | $- | $– $– $| 486.46 |
| April Invoice | 1/Apr/21 | SHAW CABLE-030-9242-5107 | $119.00 | Miscellaneous G&A | 0.0% | $- | $– $– $| 119.00 |
| March Invoice | 1/Apr/21 | SHAW CABLE-030-9242-5107 | $119.00 | Miscellaneous G&A | 0.0% | $- | $– $– $| 119.00 |
| April Rent | 1/Apr/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $- | $– $– $| 2256.48 |
| April Rent-Op | 1/Apr/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $- | $– $– $| 1277.87 |
| 5219046277 | 16/Apr/21 | UPS Brokerage | $19.17 | Miscellaneous G&A | 0.0% | $- | $– $– $| 19.17 |
| 6999-S | 30/Apr/21 | 04-Apr 2021 - Salary allocations | $8480.00 | Salaries & Employee Expenses | 0.0% | $- | $– $– $| 8480.00 |
| 6999 | 30/Apr/21 | 04-Apr 2021 - CPP and EI allocations | $486.46 | Salaries & Employee Expenses | 0.0% | $- | $– $– $| 486.46 |
| May Invoice | 1/May/21 | SHAW CABLE-030-9242-5107 | $121.38 | Miscellaneous G&A | 0.0% | $- | $– $– $| 121.38 |
| May Rent | 1/May/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $- | $– $– $| 2256.48 |
| May Rent-Op | 1/May/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $- | $– $– $| 1277.87 |
| 553603316 | 20/May/21 | SIGMA-ALDRICH CANADA CO. | $422.00 | R&D Materials / Supplies | 0.0% | $- | $– $– $| 422.00 |
| 7001-S | 31/May/21 | 05-May 2021 - Salary allocations | $8813.67 | Salaries & Employee Expenses | 0.0% | $- | $– $– $| 8813.67 |
| 7001 | 31/May/21 | 05-May 2021 - CPP and EI allocations | $510.25 | Salaries & Employee Expenses | 0.0% | $- | $– $– $| 510.25 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| June Rent | 1/Jun/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| June Rent-Op | 1/Jun/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $– $– $– $| 1277.87 |
| June Invoice | 24/Jun/21 | SHAW CABLE-030-9242-5107 | $119.0 | Miscellaneous G&A | 0.0% | $– $– $– $| 119.0 |
| Cem Gel-32.91 | 30/Jun/21 | Unknown | $32.91 | R&D Materials / Supplies | 0.0% | $– $– $– $| 32.91 |
| 7003-S | 30/Jun/21 | 06-Jun 2021 - Salary allocations | $8480.0 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 8480.0 |
| 7003 | 30/Jun/21 | 06-Jun 2021 - CPP and EI allocations | $482.39 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 482.39 |
| July Rent | 1/Jul/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| July Rent-Op | 1/Jul/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $– $– $– $| 1277.87 |
| July charges | 28/Jul/21 | SHAW CABLE-030-9242-5107 | $119.0 | Miscellaneous G&A | 0.0% | $– $– $– $| 119.0 |
| August Rent | 31/Jul/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| August Rent-Op | 31/Jul/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $– $– $– $| 1277.87 |
| 7005-S | 31/Jul/21 | 07-Jul 2021 - Salary allocations | $8480.0 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 8480.0 |
| 7005 | 31/Jul/21 | 07-Jul 2021 - CPP and EI allocations | $221.91 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 221.91 |
| August | 1/Aug/21 | SHAW CABLE-030-9242-5107 | $119.0 | Miscellaneous G&A | 0.0% | $– $– $– $| 119.0 |
| 8832351 | 4/Aug/21 | ULINE CANADA CORPORATION | $65.98 | Miscellaneous G&A | 0.0% | $– $– $– $| 65.98 |
| 11054 | 18/Aug/21 | TestResources Inc. | $8946.88 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 8946.88 |
| 65432705 | 18/Aug/21 | Linde Canada inc. | $137.75 | R&D Materials / Supplies | 0.0% | $– $– $– $| 137.75 |
| 65432756 | 19/Aug/21 | Linde Canada inc. | $303.43 | R&D Materials / Supplies | 0.0% | $– $– $– $| 303.43 |
| Visa-08242021 | 24/Aug/21 | Ladd Research | $243.58 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 243.58 |
| 65689640 | 29/Aug/21 | Linde Canada inc. | $772.63 | R&D Materials / Supplies | 0.0% | $– $– $– $| 772.63 |
| 65689943 | 29/Aug/21 | Linde Canada inc. | $289.07 | R&D Materials / Supplies | 0.0% | $– $– $– $| 289.07 |
| EXP-08312021-TW5 | 31/Aug/21 | Tianfei Wang(reimbursement) | $145.33 | R&D Materials / Supplies | 0.0% | $– $– $– $| 145.33 |
| EXP-08312021-TW3 | 31/Aug/21 | Tianfei Wang(reimbursement) | $14.4 | R&D Materials / Supplies | 0.0% | $– $– $– $| 14.4 |
| EXP-08312021-TW2 | 31/Aug/21 | Tianfei Wang(reimbursement) | $12.81 | R&D Materials / Supplies | 0.0% | $– $– $– $| 12.81 |
| EXP-08312021-TW4 | 31/Aug/21 | Tianfei Wang(reimbursement) | $8.36 | R&D Materials / Supplies | 0.0% | $– $– $– $| 8.36 |
| EXP-08312021-TW1 | 31/Aug/21 | Tianfei Wang(reimbursement) | $5.5 | R&D Materials / Supplies | 0.0% | $– $– $– $| 5.5 |
| 7012-S | 31/Aug/21 | 08-Aug 2021 - Salary allocations | $8480.0 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 8480.0 |
| 7012 | 31/Aug/21 | 08-Aug 2021 - CPP and EI allocations | $221.91 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 221.91 |
| 5107-Sep 2021 | 1/Sep/21 | SHAW CABLE-030-9242-5107 | $119.0 | Miscellaneous G&A | 0.0% | $– $– $– $| 119.0 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Rent-Sep 2021 | 1/Sep/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| Rent-Sep 2021-Op | 1/Sep/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $– $– $– $| 1277.87 |
| 65844373 | 3/Sep/21 | Linde Canada inc. | $331.13 | R&D Materials / Supplies | 0.0% | $– $– $– $| 331.13 |
| 00002X88W7361 | 4/Sep/21 | UPS Brokerage | $50.03 | Miscellaneous G&A | 0.0% | $– $– $– $| 50.03 |
| Exp09072021 | 7/Sep/21 | Yuna, Kim EXP | $759.37 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 759.37 |
| 818014 | 8/Sep/21 | Action Transportation Group | $880.62 | Miscellaneous G&A | 0.0% | $– $– $– $| 880.62 |
| Visa-Sep 302021-5 | 8/Sep/21 | ULINE CANADA CORPORATION | $65.98 | Miscellaneous G&A | 0.0% | $– $– $– $| 65.98 |
| PI-105900 | 8/Sep/21 | Targray Technology International Inc. | $275.63 | R&D Materials / Supplies | 0.0% | $– $– $– $| 275.63 |
| IN208270 | 14/Sep/21 | Aevitas | $1573.21 | R&D Materials / Supplies | 0.0% | $– $– $– $| 1573.21 |
| 554624195 | 15/Sep/21 | SIGMA-ALDRICH CANADA CO. | $156.0 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 156.0 |
| 554624986 | 15/Sep/21 | SIGMA-ALDRICH CANADA CO. | $150.2 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 150.2 |
| 554626010 | 15/Sep/21 | SIGMA-ALDRICH CANADA CO. | $58.6 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 58.6 |
| Visa-Sep 302021 | 15/Sep/21 | AMAZON.CA | $77.56 | Miscellaneous G&A | 0.0% | $– $– $– $| 77.56 |
| Visa-Sep 302021-6 | 15/Sep/21 | AMAZON.CA | $38.78 | Miscellaneous G&A | 0.0% | $– $– $– $| 38.78 |
| 000-328384 | 16/Sep/21 | GREGG DISTRIBUTORS LIMITED | $445.57 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 445.57 |
| Visa-Sep 302021-8 | 16/Sep/21 | AMAZON.CA | $254.34 | Miscellaneous G&A | 0.0% | $– $– $– $| 254.34 |
| SI-29253 | 16/Sep/21 | Targray Technology International Inc. | $262.5 | R&D Materials / Supplies | 0.0% | $– $– $– $| 262.5 |
| Visa-Sep 302021-4 | 22/Sep/21 | Omega | $231.0 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 231.0 |
| 8014134 | 22/Sep/21 | Fisher Scientific Company (Canada) | $334.34 | R&D Materials / Supplies | 0.0% | $– $– $– $| 334.34 |
| Visa-Sep 302021-3 | 23/Sep/21 | Midwest Engineering | $3097.5 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 3097.5 |
| Visa-Sep 302021-9 | 24/Sep/21 | AMAZON.CA | $260.37 | Miscellaneous G&A | 0.0% | $– $– $– $| 260.37 |
| 00002X88W7391 | 25/Sep/21 | UPS Brokerage | $135.55 | Miscellaneous G&A | 0.0% | $– $– $– $| 135.55 |
| 66217697 | 25/Sep/21 | Linde Canada inc. | $220.37 | R&D Materials / Supplies | 0.0% | $– $– $– $| 220.37 |
| 66249009 | 26/Sep/21 | Linde Canada inc. | $830.58 | R&D Materials / Supplies | 0.0% | $– $– $– $| 830.58 |
| 66249319 | 26/Sep/21 | Linde Canada inc. | $303.52 | R&D Materials / Supplies | 0.0% | $– $– $– $| 303.52 |
| HY21072197-5 | 28/Sep/21 | Anytester (Hefei) Co. Ltd. | $53096.25 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 53096.25 |
| 7017-S | 30/Sep/21 | 09-Sep 2021 - Salary allocations | $18113.23 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 18113.23 |
| 7017 | 30/Sep/21 | 09-Sep 2021 - CPP and EI allocations | $919.59 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 919.59 |
| 5272192867 | 1/Oct/21 | UPS Brokerage | $446.85 | Miscellaneous G&A | 0.0% | $– $– $– $| 446.85 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| 5107-Oct 2021 | 1/Oct/21 | SHAW CABLE-030-9242-5107 | $121.38 | Miscellaneous G&A | 0.0% | $– $– $– $| 121.38 |
| UPS-93.42 | 1/Oct/21 | UPS Brokerage | $93.42 | Miscellaneous G&A | 0.0% | $– $– $– $| 93.42 |
| 00002X88W7381 | 1/Oct/21 | UPS Brokerage | $59.62 | Miscellaneous G&A | 0.0% | $– $– $– $| 59.62 |
| 00002X88W7331 | 1/Oct/21 | UPS Brokerage | $49.47 | Miscellaneous G&A | 0.0% | $– $– $– $| 49.47 |
| 5274505159 | 1/Oct/21 | UPS Brokerage | $27.43 | Miscellaneous G&A | 0.0% | $– $– $– $| 27.43 |
| UPS-27.43 | 1/Oct/21 | UPS Brokerage | $27.43 | Miscellaneous G&A | 0.0% | $– $– $– $| 27.43 |
| Rent-Oct 2021 | 1/Oct/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| Rent-Oct 2021-Op | 1/Oct/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $– $– $– $| 1277.87 |
| CLH21219 | 5/Oct/21 | Century Land Homes Ltd. | $6565.00 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 6565.00 |
| 8040684 | 7/Oct/21 | Fisher Scientific Company (Canada) | $250.00 | R&D Materials / Supplies | 0.0% | $– $– $– $| 250.00 |
| 66497056 | 8/Oct/21 | Linde Canada inc. | $190.20 | R&D Materials / Supplies | 0.0% | $– $– $– $| 190.20 |
| 00002X88W7421 | 9/Oct/21 | UPS Delivery Service | $66.95 | Miscellaneous G&A | 0.0% | $– $– $– $| 66.95 |
| 0000002X88W7411 | 9/Oct/21 | UPS Delivery Service | $2.50 | Miscellaneous G&A | 0.0% | $– $– $– $| 2.50 |
| 66545093 | 13/Oct/21 | Linde Canada inc. | $572.54 | R&D Materials / Supplies | 0.0% | $– $– $– $| 572.54 |
| 665000079 | 15/Oct/21 | Mettler-Toledo Inc. | $57208.14 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 57208.14 |
| 21GNT1060 | 19/Oct/21 | GELON LIB CO LIMITED | $3222.50 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 3222.50 |
| 2122184 | 19/Oct/21 | ITW EAE | $- | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $|  |
| 66654324 | 21/Oct/21 | Linde Canada inc. | $258.40 | R&D Materials / Supplies | 0.0% | $– $– $– $| 258.40 |
| 554970784 | 22/Oct/21 | SIGMA-ALDRICH CANADA CO. | $98.10 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 98.10 |
| Visa-Oct 2021-4 | 23/Oct/21 | AMAZON.CA | $8.39 | Miscellaneous G&A | 0.0% | $– $– $– $| 8.39 |
| Exp10262021 | 26/Oct/21 | Zhezhu XU (Exp) | $1925.27 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 1925.27 |
| Visa-Oct 2021-5 | 26/Oct/21 | AMAZON.CA | $52.48 | Miscellaneous G&A | 0.0% | $– $– $– $| 52.48 |
| 00002X88W7441 | 30/Oct/21 | UPS Brokerage | $6.78 | Miscellaneous G&A | 0.0% | $– $– $– $| 6.78 |
| 66936650 | 31/Oct/21 | Linde Canada inc. | $383.66 | R&D Materials / Supplies | 0.0% | $– $– $– $| 383.66 |
| 7020-S | 31/Oct/21 | 10-Oct 2021 - Salary allocations | $22537.44 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 22537.44 |
| 7020 | 31/Oct/21 | 10-Oct 2021 - CPP and EI allocations | $1192.57 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 1192.57 |
| 11221 | 1/Nov/21 | TestResources Inc. | $9134.38 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 9134.38 |
| 20211101H | 1/Nov/21 | Vigor Tech USA LLC | $306.25 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 306.25 |
| 5107-Nov 2021 | 1/Nov/21 | SHAW CABLE-030-9242-5107 | $144.05 | Miscellaneous G&A | 0.0% | $– $– $– $| 144.05 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Rent-Nov 2021 | 1/Nov/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| Rent-Nov 2021-Op | 1/Nov/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $– $– $– $| 1277.87 |
| 8080123 | 1/Nov/21 | Fisher Scientific Company (Canada) | $190.6 | R&D Materials / Supplies | 0.0% | $– $– $– $| 190.6 |
| 985337 | 5/Nov/21 | Demko Ventilation Services Ltd. | $887.25 | Miscellaneous G&A | 0.0% | $– $– $– $| 887.25 |
| Exp11052021 | 5/Nov/21 | Yuna, Kim EXP | $371.0 | Miscellaneous G&A | 0.0% | $– $– $– $| 371.0 |
| Exp11152021 | 15/Nov/21 | Weixing Chen (reimbursement) | $151.94 | Miscellaneous G&A | 0.0% | $– $– $– $| 151.94 |
| 9040074680 | 16/Nov/21 | Thermo Fisher Scientific (Mississauga) | $57234.12 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 57234.12 |
| 9402485 | 16/Nov/21 | ULINE CANADA CORPORATION | $287.67 | Miscellaneous G&A | 0.0% | $– $– $– $| 287.67 |
| 8108383 | 17/Nov/21 | FIELD LLP | $768.91 | R&D Materials / Supplies | 0.0% | $– $– $– $| 768.91 |
| CLH21242 | 18/Nov/21 | Century Land Homes Ltd. | $34327.6 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 34327.6 |
| CLH21241 | 18/Nov/21 | Century Land Homes Ltd. | $884.63 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 884.63 |
| Exp11192021 | 19/Nov/21 | Cory Reynolds - reimburse | $1018.75 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 1018.75 |
| 67256566 | 20/Nov/21 | Linde Canada inc. | $334.97 | R&D Materials / Supplies | 0.0% | $– $– $– $| 334.97 |
| Exp11222021 | 22/Nov/21 | Zhezhu XU (Exp) | $3274.15 | Miscellaneous G&A | 0.0% | $– $– $– $| 3274.15 |
| IN210077 | 22/Nov/21 | Aevitas | $2927.7 | R&D Materials / Supplies | 0.0% | $– $– $– $| 2927.7 |
| Exp11292021 | 23/Nov/21 | Jean Chen Exp | $287.6 | Miscellaneous G&A | 0.0% | $– $– $– $| 287.6 |
| Exp11242021 | 24/Nov/21 | Tianfei Wang(reimbursement) | $85.96 | Miscellaneous G&A | 0.0% | $– $– $– $| 85.96 |
| 000-430377 | 25/Nov/21 | GREGG DISTRIBUTORS LIMITED | $3200.0 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 3200.0 |
| 000-430377-2 | 25/Nov/21 | GREGG DISTRIBUTORS LIMITED | $200.0 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 200.0 |
| CP21115 | 28/Nov/21 | Century Power Ltd. | $4323.04 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 4323.04 |
| 67462378 | 28/Nov/21 | Linde Canada inc. | $374.93 | R&D Materials / Supplies | 0.0% | $– $– $– $| 374.93 |
| 102689 | 30/Nov/21 | Lindsey MacCarthy LLP | $8212.5 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 8212.5 |
| 615578 | 30/Nov/21 | FIELD LLP | $243.0 | R&D Materials / Supplies | 0.0% | $– $– $– $| 243.0 |
| 7027-S | 30/Nov/21 | 11-Nov 2021 - Salary allocations | $22365.01 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 22365.01 |
| 7027 | 30/Nov/21 | 11-Nov 2021 - CPP and EI allocations | $1192.57 | Salaries & Employee Expenses | 0.0% | $– $– $– $| 1192.57 |
| 5107-Dec 2021 | 1/Dec/21 | SHAW CABLE-030-9242-5107 | $119.0 | Miscellaneous G&A | 0.0% | $– $– $– $| 119.0 |
| Rent-Dec 2021 | 1/Dec/21 | FUTURA SERVICES CORP | $2256.48 | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| Rent-Dec 2021-Op | 1/Dec/21 | FUTURA SERVICES CORP | $1277.87 | Rent & Utilities Cost | 0.0% | $– $– $– $| 1277.87 |
| TD Visa | 3/Dec/21 | MTI Corporation | $1154.0 | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 1154.0 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| 21GNT1276 | 3/Dec/21 | GELON LIB CO LIMITED | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 968.75 |
| TD Visa-2 | 4/Dec/21 | MTI Corporation | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 184.17 |
| 67633665 | 4/Dec/21 | Linde Canada inc. | R&D Materials / Supplies | 0.0% | $– $– $– $| 471.05 |
| HY21122376 | 7/Dec/21 | Anytester (Hefei) Co. Ltd. | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 15968.75 |
| Exp12132021 | 9/Dec/21 | Weixing Chen (reimbursement) | Miscellaneous G&A | 0.0% | $– $– $– $| 18.08 |
| 8145309 | 9/Dec/21 | Fisher Scientific Company (Canada) | R&D Materials / Supplies | 0.0% | $– $– $– $| 254.70 |
| 67737303 | 14/Dec/21 | Linde Canada inc. | R&D Materials / Supplies | 0.0% | $– $– $– $| 904.15 |
| 8152155 | 14/Dec/21 | Fisher Scientific Company (Canada) | R&D Materials / Supplies | 0.0% | $– $– $– $| 279.98 |
| 8152154 | 14/Dec/21 | Fisher Scientific Company (Canada) | R&D Materials / Supplies | 0.0% | $– $– $– $| 1.73 |
| 9594446 | 16/Dec/21 | ULINE CANADA CORPORATION | Miscellaneous G&A | 0.0% | $– $– $– $| 1317.19 |
| 8156650 | 16/Dec/21 | Fisher Scientific Company (Canada) | R&D Materials / Supplies | 0.0% | $– $– $– $| 483.48 |
| 8156648 | 16/Dec/21 | Fisher Scientific Company (Canada) | R&D Materials / Supplies | 0.0% | $– $– $– $| 98.32 |
| 8156649 | 16/Dec/21 | Fisher Scientific Company (Canada) | R&D Materials / Supplies | 0.0% | $– $– $– $| 47.54 |
| Exp12202021 | 20/Dec/21 | Jean Chen Exp | Miscellaneous G&A | 0.0% | $– $– $– $| 84.64 |
| 639129283 | 21/Dec/21 | Mettler-Toledo Inc. | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 5510.15 |
| 68104275 | 21/Dec/21 | Linde Canada inc. | R&D Materials / Supplies | 0.0% | $– $– $– $| 702.84 |
| 188606867-022 2021 | 22/Dec/21 | City of Edmonton- Business Licence | Miscellaneous G&A | 0.0% | $– $– $– $| 122.00 |
| 67940082 | 22/Dec/21 | Linde Canada inc. | R&D Materials / Supplies | 0.0% | $– $– $– $| 533.50 |
| 6011630 | 29/Dec/21 | MTI Corporation | $Carbon Fibre Asset Purchase | 0.0% | $– $– $– $|  |
| 7028-S | 31/Dec/21 | 12-Dec 2021 - Salary allocations | Salaries & Employee Expenses | 0.0% | $– $– $– $| 27382.76 |
| 7028 | 31/Dec/21 | 12-Dec 2021 - CPP and EI allocations | Salaries & Employee Expenses | 0.0% | $– $– $– $| 1192.57 |
| 5107-Jan 2022 | 1/Jan/22 | SHAW CABLE-030-9242-5107 | Miscellaneous G&A | 0.0% | $– $– $– $| 119.00 |
| Rent-Jan 2022 | 1/Jan/22 | FUTURA SERVICES CORP | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| Rent-Jan 2022-Op | 1/Jan/22 | FUTURA SERVICES CORP | Rent & Utilities Cost | 0.0% | $– $– $– $| 1431.26 |
| 8178475 | 5/Jan/22 | Fisher Scientific Company (Canada) | R&D Materials / Supplies | 0.0% | $– $– $– $| 70.05 |
| Rent-Feb 2022 | 1/Feb/22 | FUTURA SERVICES CORP | Rent & Utilities Cost | 0.0% | $– $– $– $| 2256.48 |
| Rent-Feb 2022-Op | 1/Feb/22 | FUTURA SERVICES CORP | Rent & Utilities Cost | 0.0% | $– $– $– $| 1431.26 |
| Boooo4785 | 4/Feb/22 | DTS Advanced Logistics Inc. | Carbon Fibre Asset Purchase | 0.0% | $– $– $– $| 95.00 |
| Rent-Mar 2022 | 1/Mar/22 | FUTURA SERVICES CORP | Rent & Utilities Cost | 0.0% | $– $– $– $| 3687.74 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Customs | 3/Mar/22 | DTS Advanced Logistics Inc. | $5282.23 | Carbon Fibre Asset Purchase | 0.0% | $- | $5282.23 |
| B00005287 | 17/Mar/22 | DTS Advanced Logistics Inc. | $95.00 | Carbon Fibre Asset Purchase | 0.0% | $- | $95.00 |
| Rent-Apr 2022 | 1/Apr/22 | FUTURA SERVICES CORP | $3687.74 | Rent & Utilities Cost | 0.0% | $- | $3687.74 |
| UPS - 84.13 | ? | UPS | $84.13 | Miscellaneous G&A | 0.0% | $- | $84.13 |
|  |  | **Total Balance Due** | **Total Balance Due** |  |  |  | $**425963.63** |

---

May **[•]**, 2022

AdvEn Industries Inc.

Attention: Michael Steele and Weixing Chen

**Re: Tangold Promissory Notes** 

Reference is made to the grid promissory note dated May [•], 2022 (the "**Thread Note**") of Tangold Inc. ("**Tangold**") in favour of 2396723 Alberta Ltd., operating as Thread Innovations ("**Thread**").

Reference is also made to the grid promissory note dated May [•], 2022 (the "**AdvEn Note**") of Tangold in favour of AdvEn Industries Inc. ("**AdvEn**").

In consideration of the covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties agree as follows:

1. Thread
 and Tangold acknowledge and agree that the Thread Note shall be subordinate in priority to
 the rights granted pursuant the AdvEn Note and all obligations relating to or arising from
 the AdvEn Note.

2. Tangold
 covenants and agrees that it shall not grant, and Thread covenants and agrees that it shall
 not create or enforce, any mortgage, charge, pledge, security interest, lien, claim or encumbrance
 of any kind on any of Tangold's assets, in each case until such time as the AdvEn Note
 has been repaid in full.

3. the
 parties hereby acknowledge and agree that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) this
 letter agreement shall be effective as of the date hereof until such time as the AdvEn Note
 has been repaid in full, unless terminated earlier by mutual agreement of the parties hereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) this
 letter agreement shall be governed by and construed in accordance with the laws of the Province
 of Alberta and the laws of Canada applicable therein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) this
 letter agreement may be executed in counterparts, which taken together form one agreement,
 and signatures provided by facsimile or other electronic methods are equivalent to original
 signatures.

Yours truly,

---

| |
|:---|
| **TANGOLD INC.** |
| Per: |
| Name: |
| Title: |
| **2396723 ALBERTA LTD.** |
| Per: |
| Name: |
| Title: |

---

**ACKNOWLEDGED AND AGREED TO** this ____ day of May, 2022.

**ADVEN INDUSTRIES INC.**

Per:   <br> Name: <br> Title:

## Exhibit 10.12

**Exhibit 10.12**

**MANAGEMENT SERVICE AGREEMENT**

This Management Agreement is made effective as of the _21st__ day of March 2020.

**BETWEEN:**

**ADVEN INDUSTRIES INC.,** a corporation incorporated pursuant to the laws of the Province of Alberta (the **"CORPORATION")**

- and -

**BITCAN GEOSCIENCES & ENGINEERING INC.,** a corporation incorporated pursuant to the laws of the Province of Alberta (the **"MANAGING SERVICE PROVIDER - MSP")**

**WHEREAS** the Corporation desires to engage MSP to assist with the day to day management of the Corporation including sourcing funding, providing HR and HSE documentation and administration, and engaging in business development and MSP has agreed to provide such services subject to the terms and conditions of this Agreement;

**NOW THEREFORE** in consideration of the mutual covenants and promises herein contained, the Parties hereto agree as follows:

**ARTICLE 1**

**DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 Capitalized
 terms used in this Agreement shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **"Management Fee"** has the meaning given to such term in Section 4.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **"MSP"** has the meaning given to such term in the preamble;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **"Affiliate"** or **"Affiliated"** means with respect to any Person, any other Person that
 directly, or indirectly through one or more intermediaries, controls, is controlled by, or
 is under common control with the Person specified. For purposes of this definition, the term **"controls", "is controlled by",** or **"is under common control with"** shall mean the possession, direct or indirect, of the power to direct or cause
 the direction of the management and policies of a Person, whether through the ownership of
 voting securities, by contract or otherwise;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **"Agreement"** means this services agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **"Board"** means the board of directors of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **"Business"** means the business of the Corporation, primarily being; electrochemical materials innovation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **"Cause"** includes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fraud,
 theft, embezzlement, or misappropriation of the Corporation's property or funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) misconduct
 in MSP's position which is willfully or grossly negligent or is materially detrimental
 to the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) willful
 failure of MSP to carry out MSP's duties properly, or repeated failures to do so despite
 warning from the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 criminal conviction of MSP for any indictable offence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a
breach of this Agreement by MSP which breach has not been remedied by MSP within five days of notice from the Corporation of such breach,
except for breaches relating to (A) fraud, (B) willful disregard for the specific instructions of the Corporation, (C) non-solicitation,
or confidentiality covenants with the Corporation, and (D) breaches which are by their nature incapable of being cured, in respect of
which breaches no cure period shall apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **"Confidential Information"** has the meaning given to such term in the Confidentiality Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **"Confidentiality Agreement"** means the Confidentiality and Non-Disclosure Agreement attached as Schedule
 "A" to this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **"Corporation"** has the meaning given to such term in the preamble;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **"Customer"** means any Person that: (i) is a customer of the Corporation or any of its Affiliates at any time in the twelve months prior to the
Termination Date; or (ii) is a prospective customer that has been canvassed by the Corporation or any of its Affiliates at any time in
the twelve months prior to the Termination Date, except for any that have definitively indicated a choice not to become customers of
the Corporation or its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) **"Intellectual Property Rights"** means all worldwide intellectual and industrial property rights in connection with the developments including,
without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) patents,
 inventions, discoveries and improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) ideas,
whether patentable or not;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) copyrights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) trademarks;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) trade
secrets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) industrial
and artistic designs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) proprietary,
possessory and ownership rights and interests of all kinds whatsoever;

including, without limitation, the right to apply for registration or protection of any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **"Party"** means either of MSP and the Corporation and **"Parties"** means both of them;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **"Person"** or **"Persons"** includes any individual, corporation, limited liability
 company, unlimited liability company, body corporate, partnership, limited liability partnership,
 firm, joint venture, syndicate, association, capital venture fund, private equity fund, trust,
 trustee, executor, administrator, legal personal representative, estate, government, governmental
 agency or board or commission or authority and any other form of entity or organization,
 whether or not having legal status;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **"Services"** has the meaning given to such term in Section 3.1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **"Term"** has the meaning given to such term in Section 2.1; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) **"Termination Date"** means the last day that MSP provides the Services to the Corporation.

**ARTICLE 2**

**TERMS OF ENGAGEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 The
 Corporation agrees to retain MSP for a period of 6 months after the signing date of this
 Agreement, which can be extended in writing by mutual agreement by both Parties or terminated
 by either Party in accordance with the terms of this Agreement (the **"Term").** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 For
 the greater clarity, the Term includes a 3-month probation period as described in Schedule
 "B".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 MSP
 is and at all times shall remain an independent contractor of the Corporation and shall have
 responsibility for and control the details and means of performing the Services. Nothing
 contained in this Agreement shall be regarded or construed as creating any relationship (employer/employee,
 dependent contractor, servant, agent, joint venture, partnership, shareholder, director or
 officer) between the Parties other than as expressly set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 MSP
 shall provide the Services to the Corporation on a non-exclusive basis and shall be free
 to provide services to any other Person during the Term provided that MSP shall not provide
 such services in a way that is inconsistent with any of the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 As
 a material inducement to and a condition of the willingness of the Corporation to engage
 MSP to provide the Services, MSP represents, warrants, covenants and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) MSP
 is not bound by any restrictive covenants, covenants not to compete, non-solicitation agreements
 or confidentiality agreements and has no other agreements, relationships, or commitments
 with any other Person that conflict with MSP being party to this Agreement or would prevent
 MSP from performing the Services; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) MSP
 has not and will not disclose to the Corporation, or use, or induce the Corporation to use,
 any proprietary information or trade secrets of any other Person including, but not limited
 to confidentiality and proprietary information of any previous employer, partnership or other
 business relationship;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) MSP
 will not disclose to anyone employed by or consulting for the Corporation, any confidential,
 proprietary or trade secret information of any other Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) MSP
 further will not engage in any conduct that violates any lawful obligations owed to any previous
 employer, partnership or other business relationship.

**ARTICLE 3**

**MSP'S SERVICES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 MSP
 shall provide contracted management services as described in Schedule "B" (the **"Services").** It is acknowledged and agreed that the Services will primarily
 relate to the day to day management and administration within the Corporation's existing
 business or future potential business as the Corporation is planning to expand into.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 MSP
 shall provide the Services at the times mutually agreed by MSP and the Corporation, both
 parties acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 MSP
 shall cause the Services to be performed exclusively by the firm itself, and shall not delegate
 its obligation to any other person or corporation unless otherwise agreed to in writing by
 the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 In
 providing the Services under this Agreement, MSP shall act honestly and in good faith with
 a view to the best interests of the Corporation, and shall use MSP's skill, diligence and
 care to ensure that the Services are provided to the reasonable satisfaction of the Board
 and Corporation and in any event exercising a degree of care and attention no less than the
 care and attention a reasonable business person possessing MSP's expertise and experience
 would exercise in comparable circumstances. MSP shall comply with all applicable laws, regulations,
 rules, codes, orders and standards imposed by the applicable federal, provincial or local
 government authorities with respect to the provision of any Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 Without
 the prior written authorization of the Corporation, MSP shall not have any authority to enter
 into any binding or enforceable contract, nor incur any liability, on behalf of the Corporation,
 and shall not represent to any third party that it has such authority.

**ARTICLE 4**

**MANAGEMENT FEE AND EXPENSES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 As
 compensation for providing the Services, MSP shall be entitled to receive the compensation
 that is described in Schedule "B" (the **"Management Fee").** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 The
 Management Fee shall be paid at the end of each calendar month or at other frequencies as
 the Corporation sees convenient and MSP agrees to. In any case, at the termination or end
 of the term of this Agreement, all outstanding compensations owed by the Corporation to MSP
 should be paid to MSP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 The
 Corporation shall provide MSP with the Management Fee in respect of the Services, provided
 that MSP has not breached, and is not otherwise in default of, MSP's obligations under this
 Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 No
 out-of-pocket expenses spent by MSP in carrying out the Services shall be reimbursed by the
 Corporation. However, for the greater clarity, expenses for seeking professional advices
 or services, including but not limited to legal matters and patent applications, are not
 considered as out-of-pocket expenses by MSP in carrying out the Services. Before engaging
 and disbursing these expenses, MSP must get prior approval in writing by the Corporation.

**ARTICLE 5**

**TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 The
 Corporation and MSP may agree in writing to terminate this Agreement at any time and for
 any reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 MSP
 may terminate this Agreement at any time and for any reason by providing the Corporation
 with 14 days' written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 The
 Corporation may terminate this Agreement at any time and for any reason by providing MSP
 with 14 days' written notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 The
 Corporation is entitled to immediately terminate this Agreement at any time for Cause, without
 notice, pay, or any further obligation to MSP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 Upon
 the termination of this Agreement for any reason, MSP shall be entitled to receive that portion
 of the Management Fee earned by MSP up to the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.6 Upon
 receiving the amount contemplated by Section 5.5, MSP shall not be entitled to receive any
 severance or termination pay, nor any other compensation for the termination of this Agreement.

**ARTICLE 6**

**INDEMNITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 MSP
 agrees to indemnify, defend and save harmless the Corporation and its Affiliates and the
 Corporation's and its Affiliates' respective directors, officers, employees and agents (collectively
 the **"Indemnitees"** or individually an **"Indemnitee")** from
 all costs (including legal fees and expenses), losses and liabilities (including damage to
 property and/or injury to persons (including death)) by reason of any claims, orders, demands,
 suits, actions, causes of action which any Indemnitee may suffer during the Term or any extension
 thereof by reason of: (i) the negligence, willful misconduct or bad faith of MSP; or (ii)
 MSP's failure to discharge the duty of care as set out in Section 3.5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 In
 the event that the Canada Revenue Agency or other applicable government department or agency
 seeks any taxes, penalties or interest from the Corporation in relation to the Management
 Fee, MSP agrees to indemnify and save the Corporation harmless from the full amount of such
 taxes (including any applicable interest and penalties) within 30 days of a claim for indemnity
 by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 The
 maximum aggregate liability of MSP to the Indemnitees in connection with the Services or
 otherwise arising by reason or in connection with this Agreement, whether in contract, tort
 or otherwise, shall be limited to one hundred (100%) percent of
the Management Fee received by MSP pursuant to this Agreement up to the date of such liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 In
 no event shall either Party be liable to the other Party in contract, tort or otherwise,
 whether foreseeable or not, and whatever the cause thereof, for any indirect, punitive, incidental,
 special, exemplary or consequential losses or damages, arising out of or related to the terms
 of this Agreement, including but not limited to lost profits, damages for loss of opportunity,
 loss of business, contracts, revenue, anticipated savings, use, opportunity, goodwill, or
 capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 The
 indemnities and limitations provided in this Article 6 shall survive the termination of this
 Agreement, provided that no claim for indemnification shall be made under Section 6.1 after
 the date that is 12 months following the Termination Date.

**ARTICLE 7**

**NON-SOLICITATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 Either
 MSP or the Corporation shall not, during the Term and for a period of twelve (12) months following the Termination Date for any reason,
 in any capacity or manner, whether directly or indirectly, individually or in partnership
 or otherwise jointly or in concert with any other Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) canvass
 or solicit the business of any Customer for any purpose which is competitive with the Business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) employ,
 engage, offer employment or engagement to or solicit the employment or engagement of or otherwise
 entice away from the employment or engagement of the other Party, any individual who is (or
 was in the previous 12 months) employed or engaged by the other Party or any of its Affiliates
 whether or not such individual would commit any breach of its contract or terms of employment
 or engagement by leaving the employment or the engagement of the other Party or any of its
 Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) lure,
 entice or persuade or assist any Person to lure, entice or persuade any Customer to cease
 or reduce its business with the other Party.

**ARTICLE 8**

**CONFIDENTIALITY OBLIGATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 The
 Parties agree that concurrent with their execution of this Agreement, they shall enter into
 and execute the Confidentiality Agreement.

**ARTICLE 9**

**RETURN OF MATERIALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 Either
 Party acknowledges that all items of any and every nature or kind created or used in connection
 with this Agreement or the provision of the Services, or furnished by the other Party or
 any of its Affiliates to the receiving Party, and all equipment, credit cards, books, records,
 reports, files, manuals, literature, Confidential Information or other materials shall remain
 and be considered the exclusive property of the providing Party at all times and shall be
 surrendered to the providing Party, in good condition, promptly on the Termination Date.

**ARTICLE 10**

**LEGAL ADVICE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 MSP
 hereby acknowledges, represents and warrants to the Corporation that it has had the time
 to review, and has reviewed, this Agreement and the Confidentiality Agreement and that it
 has received independent legal advice prior to the execution and delivery of this Agreement
 and the Confidentiality Agreement.

**ARTICLE 11**

**NOTICES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Any
 notice required to be given hereunder by any Party shall be deemed to have been well and
 sufficiently given if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) personally
 delivered to the Party to whom it is intended, or if such Party is a corporation, to an officer
 of that corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) mailed
 by pre-paid registered mail, transmitted by facsimile or e-mail, or delivered, to the address
 or facsimile number of the Party to whom it is intended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) if
to the Corporation, then:

AdvEn Industries Inc.

9407-3 20th Ave NW,

Edmonton, Alberta, Canada, T6N 1E5

Attention: Weixing Chen, CTO

E-mail: weixing.chen@adven-industries.com

&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) If
to MSP, then:

BitCan Geosciences & Engineering Inc.

Suite 109, 2770 3 Avenue SE

Calgary, Alberta T2A 2L5

Attention: Yanguang Yuan

E-mail: yuany@bitcange.com

**ARTICLE 12**

**ASSIGNMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 This
 Agreement and the rights and obligations of MSP hereunder shall not be assignable by MSP
 to any other person, firm, or corporation without the express written consent of the Corporation
 first had and obtained, which consent may be withheld in the Corporation's sole discretion.
 This Agreement may, at the discretion of the Corporation, be fully assigned to any Affiliate
 of the Corporation, and MSP acknowledges and agrees that any such assignment does not constitute
 an amendment or modification to this Agreement within the meaning of Section 21.1.

**ARTICLE 13**

**GOVERNING LAW AND SUBMISSION TO JURISDICTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 This
 Agreement shall be governed by and construed in accordance with the laws of the Province
 of Alberta and the federal laws of Canada applicable therein, and the Parties hereby irrevocably
 attorn and submit to the jurisdiction of the courts of the Province of Alberta.

**ARTICLE 14**

**UNENFORCEABLE TERMS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 If
 any term, covenant or condition of this Agreement or the application thereof to any Party
 or circumstance shall be invalid or unenforceable to any extent, the remainder of this Agreement
 or application of such term, covenant or condition, to a Party or circumstance, other than
 those to which it is held invalid or unenforceable, shall not be affected thereby and each
 remaining term, covenant or condition of this Agreement shall be valid and shall be enforceable
 to the fullest extent permitted by law.

**ARTICLE 15**

**ENTIRE AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 This
 Agreement, together with the Confidentiality Agreement, constitutes the entire agreement
 between the Parties hereto relating to the subject matter hereof and such agreements supercede
 all prior and contemporaneous agreements, understandings, negotiations and discussions, whether
 verbal or written, of the Parties, and there are no warranties, representations or other
 agreements between the Parties in connection with the subject matter hereof except as specifically
 set forth herein, or in the Confidentiality Agreement.

**ARTICLE 16**

**NO WAIVER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 No
 consent or waiver, express or implied, by either Party to or of any breach of default by
 the other Party in the performance by the other Party of its or its obligations hereunder
 shall be valid unless in writing, and no such consent or waiver shall be deemed or construed
 to be a consent or waiver to or of any other breach or default in the performance of the
 obligations hereunder by such Party hereunder. Failure on the part of either Party to complain
 of any act or failure to act of the other Party, or to declare the other Party in default,
 regardless of how long such failure continues, shall not constitute a waiver by such Party
 of its or its rights hereunder.

**ARTICLE 17**

**HEADINGS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 The
 headings in this Agreement have been inserted for reference and as a matter of convenience
 only, and in no way define, limit or enlarge the scope or meaning of this Agreement or any
 provision herein.

**ARTICLE 18**

**SINGULAR, PLURAL AND GENDER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.1 Whenever
 the singular, plural, masculine or feminine is used throughout this Agreement, the same shall
 be construed as meaning the plural, singular, masculine, feminine, neuter, body politic or
 body corporate, where the fact or context so requires.

**ARTICLE 19**

**ENUREMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 This
 Agreement shall enure to the benefit of and be binding on the Parties hereto and their respective
 heirs, executors, administrators and other legal representatives, successors and permitted
 assigns.

**ARTICLE 20**

**MODIFICATION OF AGREEMENT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1 Any
 amendment or modification to this Agreement must be in writing and signed by the Parties
 herein or it shall have no effect and shall be void.

**ARTICLE 21**

**COUNTERPARTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.1 This
 Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
 but all of which together shall constitute one and the same instrument, and in pleading or
 proving any provision of this Agreement, it shall not be necessary to produce more than one
 of such counterparts.

IN WITNESS WHEREOF, the Parties have executed this Agreement, effective as of the day and year first above written.

---

| | |
|:---|:---|
| **ADVEN INDUSTRIES INC.** | **ADVEN INDUSTRIES INC.** |
| Per: | /s/ KYLE WANG |
|  | KYLE WANG, a member of Board of Directors |
| **BITCAN GEOSCIENCES & ENGINEERING INC.** | **BITCAN GEOSCIENCES & ENGINEERING INC.** |
| Per: | /s/ Yanguang Yuan |
|  | Yanguang Yuan, Principal |

---

Schedule A: RECIPROCAL NON-DISCLOSURE, NON-COMPETITION & IP AGREEMENT

(signed pages starting on the next page. The page numbering is not continuous from hereon.)

**RECIPROCAL NON-DISCLOSURE, NON COMPETITION<br> & IP AGREEMENT**

This agreement (**"Agreement"**) is made as of this **<u>March 21, 2020</u>** (the **"Effective Date"**) between **<u>AdvEn Industries Inc.</u>,** a corporation existing under the laws of Province of Alberta with its principal office at 9407-3 20th Ave NW, Edmonton Alberta , Canada, T6N1E5 (Hereinafter called **"AdvEn")** and BitCan Geosciences & Engineering Inc. a corporation existing under the laws of Province of Alberta with its principal office at 109- 2770 3 Ave NE, Calgary Alberta, Canada, T2A2L5 (Hereinafter called **"BitCan").**

(hereafter each referred to as a **"Party"** and collectively referred to as the **"Parties"**).

WHEREAS each Party desires to obtain access to Confidential Information (as defined below) of the other Party which is to be used for the purpose of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) commercialization
 of AdvEn's technologies and all relevant non-technical needs, including managerial
 and business development, for the commercialization

(collectively the **"Purpose").**

AND WHEREAS each Party desires to permit such access to the other party subject to the rights, obligations, conditions and restrictions set out in this Agreement. In this Agreement, a Party providing access to its Confidential Information is referred to as the **"Disclosing Party",** and a party obtaining such access is referred to as the **"Receiving Party".**

NOW THEREFORE, in consideration of these premises, the mutual promises contained in this agreement and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

1.  **<u>Definitions</u>.** In addition to the words and phrases defined in the recitals above, the following words
 and phrases have the following meanings when used in this Agreement:

**"Confidential Information"** means, with respect to each Disclosing Party, any knowledge or information, regardless of form, that is proprietary to or maintained in confidence by the Disclosing Party, including any knowledge or information relating to discoveries, inventions, ideas, concepts, know-how, patents, patent applications, improvements, technology, research, plans, techniques, procedures, processes, specifications, systems, equipment, diagrams, flow charts, technical data, algorithms, interfaces, interactive elements, functionality, treatments, scripts, outlines, designs, drawings, models, engineering, manufacturing, analyses, studies, working papers, practices and relationships with third parties, trade secrets, research and development, strategies, opportunities, business plans, marketing plans, future projects or products, projects or products under consideration, product release schedules, sales forecasts, sales histories, market projections, finances, capital and operating cost estimates, costs, prices, budgets, suppliers, vendors, licensors, licensees, customers, employees, and any other matter relating to the operations, business, financial affairs, products, services, projects, technologies, facilities, inventions, creations or intellectual properties of the Disclosing Party that is (i) disclosed by the Disclosing Party or directly on its behalf through any means of communication (whether electronic, written, oral, aural or visual) or personal inspection, to the Receiving Party or (ii) in any way otherwise directly accessed by the Receiving Party. In addition, anything (whether tangible or intangible) which is labeled "Confidential" or is identified at the time of such disclosure or access as being confidential shall be deemed to be Confidential Information hereunder. Further, "Confidential Information" also includes: (i) any knowledge or information described above which the Disclosing Party obtains from a third party and which the Disclosing Party treats as proprietary or confidential information; and (ii) anything (whether tangible or intangible) that is a derivative of the Confidential Information or that is created or compiled by the Receiving Party and is, in whole or in part, based upon or contains any portion of the other Party's Confidential Information.

**"including"** means including without limitation and **"includes"** or other such derivatives thereof shall have corresponding meanings.

2.  **<u>Exempting Provisions</u>.** The Receiving Party shall not be liable for disclosure and is permitted to use any of the other Party's Confidential
Information to the extent that such Confidential Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is
 already publicly known or becomes available to the public other than through an act of the
 Receiving Party or any person or entity to whom the Receiving Party has disclosed the other
 Party's Confidential Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is
 disclosed in good faith to the Receiving Party by a third party (who is not disclosing the
 same on behalf of a Party to this Agreement) having legitimate possession and the right to
 make such disclosures without passing on or violating any obligation of confidence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) was
 already known by the Receiving Party without any obligation of confidence prior to disclosure
 or access hereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) was
 developed independently by the Receiving Party prior to disclosure of or access to any of
 the other Party's Confidential Information, or by employees of the Receiving Party who have
 not had access to the other Party's Confidential Information (both as evidenced by written
 records).

Further, notwithstanding that any portion of a combination of the other Party's Confidential Information may fall within any of the exemptions stated in (a)-(d) above, the Receiving Party shall continue to be liable for disclosure or use of any combination of the other Party's Confidential Information that contains such portion unless the entire combination falls within such exemptions.

3.  **<u>Disclosure and Use Restrictions</u>.** 

3.1 The
Receiving Party agrees that it shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) use
 the other Party's Confidential Information solely to the extent required to fulfill the Purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) not
 disclose the other Party's Confidential Information except as may be specifically and expressly
 permitted in Section 3.2 below;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) take
 reasonable precautions, and in any event, not less than those precautions used to protect
 its own Confidential Information, to keep the other Party's Confidential Information in the
 strictest confidence and to protect it from disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) be
 responsible and liable for any breach of this Agreement by any person or entity to whom the
 Receiving Party has, directly or indirectly, disclosed or otherwise provided access to the
 other Party's Confidential Information and ensure that such persons and entities comply with
 the obligations, conditions and restrictions set out in this Agreement that are imposed upon
 the Receiving Party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) other
 than as provided for in this Agreement, not reproduce or copy in any medium in whole or in
 part any of the other Party's Confidential Information without the written approval of the
 Disclosing Party in each instance.

3.2 The
Receiving Party may only:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) disclose
 the other Party's Confidential Information only to those of its employees that have a need
 to know the Confidential Information to fulfill the Purpose, provided that the Receiving
 Party advises each such employee of the obligations of the Receiving Party under this Agreement,
 before the employee receives access to the Confidential Information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) disclose
 the other Party's Confidential Information to third parties (including to legal counsel,
 other professional advisors, consultants and contractors of Receiving Party and its affiliates
 and any other person or entity who is not an employee of the Receiving Party), provided that <u>prior</u> to any such disclosure the Receiving Party <u>both</u>:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) advises
 the Disclosing Party of its intent to make such disclosure and receives the Disclosing Party's
 written approval of such disclosure (not to be unreasonably withheld), <u>and then</u>, if such approval is obtained, must

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) either
 have such third party (1) execute an Acknowledgement in the form attached as **Schedule A (Acknowledgment)** to this Agreement and provide an original executed copy to the Disclosing
 Party, or (2) have such third party execute a form of non-disclosure agreement with the Disclosing
 Party that is acceptable to the Disclosing Party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) disclose
 or use the other Party's Confidential Information for purposes other than those expressly
 permitted in this Agreement where such disclosure or use is expressly approved in writing
 by the Disclosing Party in each instance.

3.3 Each
Party acknowledges and agrees that: (i) this Agreement, (ii) the fact that that the Parties are discussing and evaluating the advancement
of a potential business relationship between the Parties, and (iii) the terms and contents of any related or resulting discussions, negotiations
or agreements; shall be deemed to be the other Party's Confidential Information hereunder and shall be treated accordingly hereunder
by each Party.

3.4 The
 Receiving Party shall promptly notify the other Party of any unauthorized use, possession
 or disclosure of the other Party's Confidential Information that it may become aware of.

3.5 Should
the Receiving Party, or any person or entity to whom Confidential Information is transmitted directly or indirectly by the Receiving
Party, be required by law to disclose any of the other Party's Confidential Information, the Receiving Party shall forthwith notify the
Disclosing Party, and upon the request of the Disclosing Party, shall cooperate reasonably with the Disclosing Party in contesting such
disclosure or seeking a protective order or other appropriate remedy within and subject to all applicable laws.

3.6 Notwithstanding
anything to the contrary, this Agreement shall not obligate any Party to disclose or otherwise provide access to any particular Confidential
Information or any particular portion thereof and such disclosure or access, if any, is discretionary.

4.  **<u>Non-Circumvention</u>.** The Parties hereto may introduce, to each other, to individuals, entities, and/or opportunities who/which, including Confidential
Information as defined above, may represent to the Parties potential gain or benefit, directly or indirectly, now and/or in the future.
The Parties hereto intend to be legally bound, and hereby irrevocably agree, and guarantee to each other that they shall not, directly
or indirectly interfere with, circumvent or attempt to circumvent, avoid, by-pass, or obviate each other's interest, or the interest
or relationship between the Parties relating to established or to be established relationships, business, or contracts, in connection
with any on-going or future business, except as may be otherwise agreed to in writing by the Parties. Receiving Party, agrees to refer
to Disclosing Party any direct or indirect leads, requests, orders or other inquiries, indications or expressions of interest from any
customer, supplier or business relation, or potential customer of Disclosing Party

5.  **<u>Non-Solicitation</u>.** Receiving Party shall not, at any time during the Evaluation Period or after the termination or expiry of this Agreement for whatever
reason, induce or attempt to induce any person that is a customer or supplier of the Disclosing Party or who otherwise has a business
relationship with the Disclosing Party at any time during the Evaluation Period, to cease doing business with the Disclosing Party, in
any way interfere with the relationship between the Disclosing Party and any such customer, supplier or business relation, or solicit
the business of any such customer, supplier or business relation..

6.  **<u>Non-Competition</u>.** Receiving Party will not, at any time during the Evaluation Period or after the termination
 or expiry of this Agreement for whatever reason, whether directly or indirectly, use the
 Confidential Information, or any part of it, to (a) compete with the Disclosing Party or
 (b) provide products or services that are competitive with the products and services provided
 the Disclosing Party as at the date of expiry or termination.

7.  **<u>Term and Termination</u>.** This Agreement shall apply in respect of Confidential Information
 accessed or disclosed before, on or after the Effective Date and the evaluation period shall
 continue in full force and effect for a period of two (2) years (the **"Evaluation Period")** unless terminated earlier at any time and for any reason by a Party by
 giving thirty (30) days' notice in writing to the other Party of its intention to terminate.
 Notwithstanding the expiry or termination of the Evaluation Period, the Receiving Party and
 its affiliates will continue to be bound by the obligations of confidentiality and all other
 obligations hereunder in respect of any Confidential Information which remains in the possession
 or control of the Receiving Party or its affiliates after expiry or termination.

**8.**  **<u>Return/Destruction of Confidential Information</u>.** Upon the termination of this Agreement or any notice
 from the Disclosing Party making such a request (whichever is earlier), the Receiving Party
 shall immediately discontinue and cease using the other Party's Confidential Information
 and promptly return or destroy, at the Disclosing Party's option, any and all of the other
 Party's Confidential Information that was disclosed or accessed hereunder and an officer
 of the Receiving Party shall certify in writing that the same has been completed within ten
 (10) days of termination or expiry of the Evaluation Period. Notwithstanding anything to
 the contrary herein, it is understood and agreed by the Parties that the Receiving Party
 may retain, for corporate governance purposes, a copy of any approvals presentation made
 to the Receiving Party's executives, senior management or board of directors which
 contains Confidential Information. Furthermore, the Receiving Party's computer systems
 may automatically back up Confidential Information disclosed to it under this Agreement.
 To the extent that such computer back up procedures create copies of the Confidential Information,
 the Receiving Party may retain such copies in its archival or back up computer storage for
 the period it normally archives backed up computer records, which copies shall be subject
 to the provisions of this Agreement until the same are destroyed, and shall not be accessed
 by the Receiving Party during such period of archival or back up storage other than as might
 be permitted by this Agreement. Notwithstanding the destruction or return of the Confidential
 Information, the Receiving Party and its affiliates will continue to be bound by the obligations
 of confidentiality and all other obligations hereunder during the term of this Agreement.

9.  **<u>No Other Business Relationship</u>.** This Agreement does not represent, and in no way implies:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
partnership, joint venture or other commercial relationship between the Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an
authorization for either Party to act as the agent or representative of the other;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) an
agreement or commitment by either Party to purchase, acquire, develop, or use facilities, products, technologies or services of the other
Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) an
agreement to enter into any other agreement with the other party concerning any matter whatsoever; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) an
encouragement to either Party to expend funds or other resources in the development of facilities, products, technologies or services.

10.  **<u>No Warranty or Liability</u>.** Each Party acknowledges that it will each rely upon its own
 investigations, due diligence and analysis in evaluating and in satisfying itself as to all
 matters relating to the Purpose. Each Party further acknowledges that the Disclosing Party
 makes no representation or warranty with respect to its Confidential Information whatsoever
 and each Party hereby expressly disclaims any and all representations, warranties or conditions
 whether express, implied, statutory or otherwise. Further, the Disclosing
Party shall not have any liability or responsibility whatsoever for any losses or damages whatsoever (whether direct, indirect, consequential
or otherwise) arising from any error or omission in, or any use or reliance on, its Confidential Information howsoever caused.

11.  **<u>No Transfer of Interest</u>.** For added clarity and notwithstanding anything to the contrary
 in this Agreement, neither the execution of this Agreement, nor the furnishing of any Confidential
 Information, shall be construed as granting to the Receiving Party (expressly or by implication,
 estoppel or otherwise) any right or interest, by license or otherwise, in, under or to any
 invention, trade secret, know-how, patent, patent application, copyright, trade name, trademark,
 industrial design, trade secret, or other intellectual property right, all whether now or
 hereafter owned by, controlled by, or licensed to the Disclosing Party. The Confidential
 Information disclosed by the Disclosing Party is, and remains, the property of the Disclosing
 Party. The Receiving Party will not apply for or obtain any intellectual property protection
 in respect of the Confidential Information of the Disclosing Party, or in respect of any
 future refinements, improvements, enhancements and extensions based thereon.

12.  **<u>Notices</u>.** Any notice required to be given under this Agreement shall be provided by email (provided
 that confirmation of receipt is obtained), or in writing and deemed to have been received
 on the date given when hand delivered or sent by facsimile (provided that oral confirmation
 of receipt is obtained or a hard copy is concurrently sent by commercially recognized overnight
 delivery service for receipt on the following business day), or seventy two (72) hours after
 the notice has been sent by mail (postage prepaid) addressed to the other party, to the addresses
 set out on page 1 of this Agreement, or such other address as the parties may from time to
 time provide notice.

13.  **<u>Applicable Laws</u>.** This Agreement shall be governed by the laws of the Province of Alberta without
 regard to the conflict of laws principles therein, and the Parties irrevocably consent, submit
 and attorn to the jurisdiction of the courts in the Province of Alberta and the courts of
 appeal therefrom.

14.  **<u>Legal Fees</u>.** In the event it is necessary for either Party to seek a determination or enforcement
 of their rights under this Agreement in any court of competent jurisdiction, the prevailing
 Party shall be entitled to recover, in addition to any and all other remedies awarded by
 such court, its reasonable legal fees and court costs, including such fees and costs on appeal.

15.  **<u>Injunctive Relief</u>.** The Parties acknowledge and agree that a breach of this Agreement will result
 in irreparable and continuing harm to the Disclosing Party for which monetary damages will
 not fully compensate the Disclosing Party. Therefore, in the event of a breach or a threatened
 or intended breach of this Agreement by the Receiving Party, the Receiving Party hereby consents
 to the granting of, and the Disclosing Party shall be entitled, in addition to such monetary
 relief as may be recoverable and without deposit of security, posting any bond or showing
 or proving any actual damages being sustained by the Disclosing Party, to equitable relief
 (including interim or interlocutory injunctions unilaterally without notice, and final injunctions
 with notice), enjoining and restraining such breach, or threatened or intended breach, enjoining
 the Disclosing Party to specifically perform the Agreement and to such other rights and remedies
 as are available at law or in equity to the Disclosing Party.

16.  **<u>Severability</u>.** Whenever possible, each provision of this Agreement shall be interpreted in such a manner
 as to be effective and valid under applicable law, however, each provision of this Agreement
 is intended to be severable and if any provision is determined by a court of competent jurisdiction
 to be illegal, invalid or unenforceable for any reason whatsoever, such provision shall be
 severed from this Agreement and will not affect the legality, validity or enforceability
 of the remainder of this Agreement or any other provision hereof. Further and without limiting
 the generality of the foregoing, should any provision of this Agreement be or become ineffective
 because of any in applicable law or change thereof, or should this Agreement fail to include
 a provision that is required as a matter of applicable law, the validity of the other provisions
 of this Agreement shall not be affected thereby. If any of the circumstances contemplated
 in this Section arise, the Parties shall negotiate in good faith appropriate modifications
 to this Agreement to reflect the intentions of the parties as described in the original severed
 provision of this Agreement or, as applicable, to include a provision that is required as
 a matter of applicable law.

17.  **<u>Survival</u>.** Upon termination or expiration of this Agreement, the terms and conditions of this Agreement
 shall survive in relation to all Confidential Information disclosed or accessed prior to
 such termination or expiration. For clarity, and without limiting or restricting the foregoing,
 the Receiving Party shall not be entitled to use any Confidential Information for any purpose
 whatsoever after the termination or expiration of this Agreement. Notwithstanding the foregoing,
 should the Parties enter into a further agreement regarding the Purpose, the Parties'
 confidentiality obligations shall be governed by such agreement, and the terms and conditions
 of this Agreement shall no longer apply to the Parties.

18.  **<u>Waiver</u>.** No failure or delay by either Party in exercising any right, remedy, power or privilege
 under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise
 thereof preclude any other or future exercise of any right (equitable or otherwise), remedy,
 power or privilege hereunder. Any and all waivers hereunder shall in each and every instance
 be effected only in writing, signed by the waiving Party and shall not constitute a continuing
 waiver in relation to any subsequent occurrence.

19.  **<u>Assignment</u>.** This Agreement may not be assigned in whole or in part by either Party without the prior
 written consent of the other Party and such written consent shall not be unreasonably withheld.

20.  **<u>Entire Agreement</u>.** This Agreement represents the entire understanding and agreement of the
 Parties and supersedes all prior communications, agreements and understanding relating to
 the subject matter hereof. The provisions of this Agreement may not be modified, amended,
 or waived, except by a written instrument duly executed by both Parties. This Agreement enures
 to the benefit of and binds the Parties and their respective heirs, executors, administrators,
 successors and permitted assigns. The duties of each of the Parties set forth in this Agreement
 shall be in addition to, and shall not derogate from or limit, the duties which such Party
 has to the other Party at common law or in equity not to use or disclose such other : Party's
 Confidential Information.

---

| | |
|:---|:---|
| 21 | **<u>Counterparts</u>.** This agreement may be executed in any number of counterparts, each of which shall constitute an original, but all of which, when taken together, shall be considered one document. Further, the transmittal of signatures by facsimile or other electronic form is good and valid execution of this Agreement and is legally binding on the Parties. |

---

22.  **<u>Authority</u>.** Each party represents and warrants to the other that it has all requisite power and authority
 to enter into this Agreement and to perform its obligations and that this Agreement has been
 duly authorized, executed and delivered by it and constitutes a valid and binding obligation,
 enforceable against it in accordance with its terms.

**IN WITNESS WHEREOF,** the Parties acknowledge that they have read this Agreement, understand it, and agree to be bound by it and have caused this Agreement to be executed by their duly authorized representatives effective as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **AdvEn Industries Inc** | **AdvEn Industries Inc** | **BitCan Geosciences &Engineering Inc.** | **BitCan Geosciences &Engineering Inc.** |
| Per: | /s/ Weixing Chen | Per | /s/ Yanguang Yuan |
|  | Authorized Signature |  | Authorized Signature |
|  | Weixing Chen |  | Yanguang Yuan |
|  | Name (print or type) |  | Name (print or type) |
|  | CTO/CEO |  | Principal |
|  | Title |  | Title |

---

Schedule B: BitCan Managing AdvEn - a Commercial Proposal

(inserted from an external file and thus, the page numbering is not continuous.)

## Exhibit 10.13

**Exhibit 10.13**

**EXECUTIVE EMPLOYMENT AGREEMENT**

Dated as of April 19, 2021

Between

**NANO INNOVATIONS INC.**

(the "Company")

and

**R. Michael Steele**

(the "Executive")

EXECUTIVE EMPLOYMENT AGREEMENT

**NANO INNOVATIONS INC.**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
| RECITALS | 1 |
| ARTICLE 1 –TERM | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 1.1 Indefinite Term | 1 |
| ARTICLE 2 - TITLE, SERVICES, REPORTING AND DUTIES | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.1 Title and Services | 1 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.2 Conditions | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.3 Subsidiaries | 2 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 2.4 Duties | 2 |
| ARTICLE 3 - PLACE OF EMPLOYMENT | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.1 Calgary Based | 3 |
| ARTICLE 4 - COMPENSATION AND BENEFITS | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.1 Base Salary | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.2 Increase in Base Salary | 3 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.3 Performance Bonuses | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.4 Payment of Compensation and Status as a Taxable Employee | 4 |
| ARTICLE 5 - ANNUAL VACATION | 4 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.1 Period | 4 |
| ARTICLE 6 - EXPENSES | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.1 Reimbursement of Expenses | 5 |
| ARTICLE 7 - TERMINATION | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.1 Definitions | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.2 Termination by the Company for Just Cause | 5 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.3 Voluntary Termination by the Executive | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.4 Death of the Executive | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.5 No Payments in Certain Events | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.6 Payments in the Event of Termination by Company Without Just Cause | 6 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.7 Payments in the Event of Termination upon a Change of Control | 7 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.8 Executive to Provide Release and Resignation | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.9 Manner of Payment | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.10 Return of Assets and Documents | 8 |
| ARTICLE 8 - CONFIDENTIALITY | 8 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 8.1 Confidential Information | 8 |
| ARTICLE 9 - NON-COMPETITION AND NON-SOLICITATION | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.1 Non-Competition and Payments for Enforcement by the Company during Restricted Period | 10 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 9.2 Non-Solicitation | 11 |
| ARTICLE 10 - OWNERSHIP OF INTELLECTUAL PROPERTY | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.1 Definitions | 11 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.2 Exclusive Property | 12 |

---

EXECUTIVE EMPLOYMENT AGREEMENT

(i) **NANO INNOVATIONS INC.**

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.3 Work for Hire | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.4 Disclosure | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.5 Assignment | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.6 Moral Rights | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.7 Further Assistance | 12.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 10.8 Representations and Warranties | 12.0 |
| ARTICLE 11 - ARBITRATION | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.1 Matters for Arbitration | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.2 Notice | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.3 Appointments | 13.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 11.4 Award | 14.0 |
| ARTICLE 12 - OTHER PROVISIONS | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.1 Waivers and Amendments | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.2 Entire Agreement | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.3 No Representation or Claims | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.4 Governing Law | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.5 Notices | 14.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.6 Assignment | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.7 Survival | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.8 Severability | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.9 Independent Legal Advice | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.10 Enurement | 15.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.11 Further Assurances | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.12 Personal Information | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.13 Captions | 16.0 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 12.14 Counterparts | 16.0 |

---

EXECUTIVE EMPLOYMENT AGREEMENT

(ii) **NANO INNOVATIONS INC.**

**<u>EXECUTIVE EMPLOYMENT AGREEMENT</u>**

This Agreement is dated as of the 18th day of April, 2021, between

---

| |
|:---|
| **NANO INNOVATIONS INC.**, a company incorporated pursuant to the laws of the Province of British Columbia, Canada with a registered office at #307, 1477 West Pender Street, Vancouver, British Columbia, Canada, V6G 2S3 |
| <br> (the "**Company**")<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;and |

---

---

| |
|:---|
| **R. Michael Steele**, with an address at 227 – 23 Avenue N.W., Calgary, Alberta, Canada, T2M 1S3 |
| (the "**Executive**") |

---

**RECITALS**

A. The Company is in the energy storage business and is in the process of acquiring AdvEn Industries Inc. to pursue opportunities in the energy storage business and related IP.

B. The Executive is intended to be the **Chief Financial Officer** of the Company.

C. The Company and the Executive wish to enter into this Agreement pursuant to which the Executive will be employed as the **Chief Financial Officer** of the Company on the terms and conditions set forth in this Agreement.

**NOW THEREFORE THIS AGREEMENT WITNESSETH** that, in consideration of the mutual covenants and provisos herein contained, **THE PARTIES AGREE AS FOLLOWS**:

**ARTICLE 1–TERM**

**Section 1.1 Indefinite Term**

The term of the Executive's employment by the Company under this Agreement is indefinite and has commenced on **May 3, 2021**, and shall thereafter continue unless and until such employment is earlier terminated by either party as hereinafter provided. For purpose of this Agreement, the Effective Date is deemed to be April 19, 2021, including for the purpose of calculating payments under sections 7.6 and 7.7 of this Agreement.

**ARTICLE 2- TITLE, SERVICES, REPORTING AND DUTIES** 

**Section 2.1 Title and Services**

(1) The Executive will continue to perform the duties and responsibilities normally and reasonably associated with the office of **the Chief Financial Officer** which will include, without limitation, those services set out in Schedule "A" (collectively, the "**Services**").

(2) The Executive shall be employed to provide the Services on a full-time basis.

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**NANO INNOVATIONS INC.**

(3) The Executive agrees that the Executive's duties and responsibilities may be modified as mutually agreed to by the Parties, each acting reasonably.

(4) The Executive will report to the board of directors of the Company (the "**Board**"), and will undertake and perform the Services until such time that the Company elects a Chief Executive Officer. Upon the appointment of the Chief Executive Officer, the Executive shall report to the Chief Executive Officer.

**Section 2.2 Conditions**

The Executive's employment under this Agreement is generally conditional upon the Executive maintaining any required regulatory approvals for his involvement as a public company officer with any stock exchange, securities commission or like authority; and, if applicable, maintaining, in good standing, his professional qualification.

**Section 2.3 Subsidiaries**

The Executive will perform the Services on behalf of the Company and its subsidiaries. Accordingly, in this Agreement, the term "**the Company**" means the Company and all of its subsidiaries.

[*In the event that the Company is acquired (either directly or through a series of transactions) by a publicly traded company (a "**Pubco**") in connection with a going public transaction (a "**Going Public Transaction**"), the Company will be deemed to include the Pubco or any successor organizations*.]

**Section 2.4 Duties**

(1) The Executive acknowledges that, as a senior officer of the Company, the Executive will owe a fiduciary duty to the Company.

(2) The Executive will also:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) devote full-time effort and attention to the business and affairs of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) perform the Services in a competent and efficient manner and in a manner consistent with the Executive's
fiduciary obligations to the Company as an executive officer thereof and in compliance with all reasonable Company policies of which the
Executive is made aware, and will carry out all lawful instructions and directions from time to time given to the Executive in relation
to the performance of the Services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) use all commercially reasonable efforts to promote the interests and goodwill of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) comply with all Company policies and codes of business ethics, as adopted by the Board from time to time,
including the Company's confidentiality and insider trading policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) in the event of a Going Public Transaction, act as **the Chief Financial Officer** or an equivalent
officer of Pubco, as requested by the Board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) not undertake any other business or occupation or become a director or officer, employee or agent of any
other company, firm, society or person without prior written approval of the Board of Directors, which such approval shall not be unreasonably
withheld, and with the exception of the current advisor, director, and officer roles as described in Schedule "B"

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

(3) The Executive warrants that the Executive shall perform the Services and conduct his other activities in a manner which is lawful and reputable and which is designed to bring good repute to the Company, the Company's business interests and the Executive. In particular, and in this regard, the Executive specifically agrees to provide the Services in a sound and professional manner consistent with performance quality standards of the industry and otherwise in accordance with the terms of this Agreement. In the event that the Board of Directors has a reasonable concern that the Services as performed by the Executive are being conducted in a way contrary to law or are reasonably likely to bring disrepute to the business interests or to the Company's or the Executive's reputation, the Company may require that the Executive make such alterations in the Executive's activities, as the Board of Directors may reasonably require in its sole and absolute discretion to the extent necessary to address such reasonable concerns.

(4) The Executive will not knowingly breach, and will take all reasonable steps to inform himself about compliance with, all Canadian and foreign laws, whether federal, provincial or state, applicable to the Executive's respective duties and obligations hereunder. In particular, the Executive acknowledges the application of securities laws and his status as an "insider" as defined by such laws in connection with the trading in the Company's stock and dealing with its confidential information.

**ARTICLE 3- PLACE OF EMPLOYMENT**

**Section 3.1 Calgary Based**

The Executive will provide Services based from the Company's Calgary office, or such other location as reasonably requested and required in Calgary, including but not limited to the Executive's home office, but understands some travel may be necessary to where the Company currently or may in the future conduct business to the extent reasonably required to perform the Services.

**ARTICLE 4- COMPENSATION AND BENEFITS**

**Section 4.1 Base Salary**

The Executive shall receive an annual base salary of C$180,000 as it may be adjusted from time to time in accordance with this Agreement (the "**Base Salary**"). All such Base Salary will be due and payable by the Company to the Executive pro rata on a semi-monthly basis in arrears, net of applicable statutory deductions, in a manner consistent with the general payroll practice of the Company, or at such other time and in such other manner as the Executive and the Company may agree, from time to time. The Company and Executive agree that upon the completion of a Going Public Transaction or a or any future debt and/or equity financing of $10 million or greater, the Executive's Base Salary shall automatically increase to C$230,000 on the closing date of such financing or Going Public Transaction.

**Section 4.2 Increase in Base Salary**

The Company will review, at least annually, the Base Salary payable to the Executive from time to time during the continuance of this Agreement. The Company may, in its discretion, increase (but not decrease) the Base Salary depending on the Executive's performance of the Services and having due regard to the financial circumstances of the Company.

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

**Section 4.3 Performance Bonuses**

The Executive may receive, but is not guaranteed, an annual cash bonus based on performance targets established by the Board from time to time (the "**Bonus**"), provided that the setting of performance targets and the grant of any Bonus is at the sole discretion of the Board. The Company agrees that for purposes of this Agreement, the Executive may earn up to 50% of the Executive's Base Salary in the form of a Bonus, which may also increase in accordance with an annual compensation review.

Stock Options

The Executive will be eligible to participate in the Company's stock option plan, as in effect from time to time, including any stock option plan of Pubco in the event of a Going Public Transaction (the "**Stock Option Plan**"). All grants of stock options made to the Executive will be made in accordance with and subject to the terms of the Stock Option Plan (including after applicable blackout periods) and subject to approval of the Board and any stock exchange on which the Company's shares (or Pubco's shares) are traded. The grant of any stock options will be made at the discretion of the Board in accordance with the terms of the Stock Option Plan. The Executive acknowledges that the Board will entitled to impose reasonable vesting conditions in connection with any grant of options. The Company and the Executive agree for purposes of this Agreement that the options granted to the Executive shall be based upon such grant amount which is consistent with an allocation typically granted to Chief Financial Officers of a Company in a similar business and stage plus twenty percent (20%) to reflect the Executive's commitment to the business at this early stage.

Group Insurance and Health Benefits

The Executive will be eligible to participate in, and the Company will pay the premiums in respect of, any group medical and dental insurance, health, extended health, life, long-term disability, and accidental death and dismemberment insurance and pension plans applicable to the executives of the Company from time to time (together, the "**Benefits**"). Entitlement to the Benefits under any plan shall be determined by the plan carrier in accordance with the terms and conditions of such plan.

**Section 4.4 Payment of Compensation and Status as a Taxable Employee**

It is hereby also acknowledged and agreed that the Executive will be classified as a taxable employee of the Company for all purposes, such that all compensation which is provided by the Company to the Executive under this Agreement, or otherwise, will be calculated and payable on a net basis for which all required statutory taxes will first be deducted by the Company and remitted on behalf of the Executive to all applicable taxation authorities in each instance.

**ARTICLE 5- ANNUAL VACATION**

**Section 5.1 Period**

The Executive will be entitled to **four** weeks of paid vacation during each calendar year, to be taken at a time or times that are approved by the Company, taking into account the operational requirements of the Company and the need for timely performances of the Services. The Executive will also generally be entitled to all statutory holidays, though the performance of the Services may require that the Executive work on such days, for which the Executive will not be compensated or given time in lieu thereof. Unused vacation may not be carried over for more than twelve months after the completion of each fiscal year.

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

**ARTICLE 6- EXPENSES**

**Section 6.1 Reimbursement of Expenses**

The Company will reimburse the Executive for all reasonable travel and other out-of-pocket expenses incurred by the Executive directly related to the performance of the Services (collectively, the "**Expenses**"). The Executive will account for such Expenses in accordance with the policies and directions provided by the Company from time to time in accordance with the Company's expense policy.

**ARTICLE 7- TERMINATION**

**Section 7.1 Definitions**

In this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**Just Cause**" means any material breach of this agreement and any act, omission, behaviour,
conduct or circumstance of the Executive that constitutes just cause for dismissal of the Executive at common law, including an act involving
gross negligence, or wilful misconduct, commission of a felony, or any material omission in the performance of Services, or the doing
or condoning any unlawful or manifestly improper act; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**Change In Control**" means either: (i) a merger or acquisition in which the Company
is not the surviving entity; except for a transaction the principal purpose of which is to change the incorporating jurisdiction of the
Company; (ii) the sale, transfer or other disposition of all or substantially all of the assets of the Company; or (iii) any other corporate
reorganization or business combination in which 50% or more of the outstanding voting stock of the Company is transferred, or exchanged
through merger, to different holders in a single transaction of the Company or in a series of related transactions completing within 12
months. For the purposes of this Agreement, Change of Control" does not include a Going Public Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**Constructive Dismissal**" includes, but shall not be limited to a demotion in either
title or within the Company organizational structure or a change in the duties of the Executive, any changes in the fundamental terms
of this Agreement without the consent of the Executive and to the detriment of the Executive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**Effective Date of Termination**" means the date on which this Agreement has been terminated in accordance with the
terms set forth herein.

**Section 7.2 Termination by the Company for Just Cause**

The Company may terminate the employment of the Executive under this Agreement summarily, without any notice or any payment in lieu of notice, for Just Cause.

(1) The Executive acknowledges that the Company's stock option plan may provide for immediate termination of any unexercised Stock
Option, even if vested, upon dismissal for Just Cause.

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

**Section 7.3 Voluntary Termination by the Executive**

The Executive may terminate the Executive's employment under this Agreement for any reason by providing not less than 30 calendar days' notice in writing to the Company; provided, however, that the Company may waive or abridge any notice period specified in such notice in its sole and absolute discretion, on the condition that the Company pays the Executive a pro-rated amount of his Base Salary for the portion of the notice period that is waived or abridged, and that any bonuses which would have been paid or stock options which would have vested during the notice period that is waived or abridged, are paid to or vested in the Executive.

**Section 7.4 Death of the Executive**

The employment of the Executive will terminate upon the death or determination of the permanent disability of the Executive which renders performance of the Services contemplated hereby impossible. For further certainty, "permanent disability" means a mental or physical disability that has been certified as permanent by a qualified practicing physician, and which has caused the Executive to be substantially incapable of providing the Services to the Company for six consecutive months or a cumulative period of twelve months over a period of thirty-six consecutive months.

**Section 7.5 No Payments in Certain Events**

Upon either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) termination for Just Cause in accordance with Section 7.2 herein; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by the voluntary termination of employment by the Executive in accordance with Section 7.3 herein,

the Executive will be entitled to compensation earned by the Executive before the Effective Date of Termination calculated pro rata up to and including the Effective Date of Termination, reimbursement of any outstanding expenses as of the Effective Date of Termination, any outstanding Vacation pay as of the Effective Date of Termination, and will be entitled to exercise any then vested stock options at any time during 90 calendar days from the Effective Date of Termination, but will not be entitled to any severance or other payments under this Agreement or otherwise.

**Section 7.6 Payments in the Event of Termination by Company Without Just Cause**

The Company will, if it elects for convenience to terminate the employment of the Executive, or if there is Constructive Dismissal of the Executive, provide the Executive with the following, in accordance with Section 7.9, subsequent to the Effective Date of Termination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) payment of the total of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) severance in lieu of notice equal to six months of the then Base Salary only;
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;(A) after three years of service increase severance in lieu of notice to 12 months of the then Base Salary;

&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) After six (6) years of service increase severance in lieu of notice to 18 months of the then Base Salary;

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The average of any bonuses paid to the Executive over the last two years, prorated pursuant to 7.6(a)(i);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any outstanding Vacation pay as at the Effective Date of Termination; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any outstanding Expenses as at the Effective Date of Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain the Executive's then Group Benefits for the length of time determined by section 7.6(a)(i), from the Effective Date
of Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to the Company's then stock option plan and the rules and policies of any regulatory authority
and stock exchange having jurisdiction over the Company, allow for the Executive to then exercise any unexercised and fully vested portion
of the Stock Option on the Effective Date of Termination at any time during 90 calendar days from the Effective Date of Termination.

**Section 7.7 Payments in the Event of Termination upon a Change of Control**

If at any time within 12 months after the occurrence of a Change of Control either (i) the Company terminates the Executive's employment without Just Cause, or (ii) the Executive terminates the Executive's employment as a result of a Constructive Dismissal, the Company will undertake the following in accordance with Section 7.9 subsequent to the Effective Date of Termination:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) pay the total 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) severance in lieu of notice equal to twelve months of the then Base Salary only; 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;(A) After six (6) years of service increase severance in lieu of notice to 18 months of the then Base Salary;

&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 average of any bonuses paid to the Executive over the last two years, prorated pursuant to 7.7(a)(i);

&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) any outstanding Vacation pay as at the Effective Date of Termination; 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;(iv) any outstanding Expenses as at the Effective Date of Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) maintain the Executive's then Group Benefits for a period equal to the notice period the Executive
is entitled to under section 7.7 (a)(i) and its subsections, from the Effective Date of Termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to the Company's then stock option plan and the rules and policies of any regulatory authority
and stock exchange having jurisdiction over the Company, allow for the Executive to then exercise any unexercised and fully vested portion
of the Stock Option on the Effective Date of Termination at any time during 90 calendar days from the Effective Date of Termination.

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

**Section 7.8 Executive to Provide Release and Resignation**

As of the Effective Date of Termination and so soon thereafter as practicable and as a condition of receiving payments provided for under this Agreement upon termination, the Executive will execute and deliver to the Company a full and final release of the Company, in the form which shall be in a form mutually agreed upon within 15 days of the Effective Date of this Agreement, in respect of the Executive's employment under this Agreement and otherwise against payments of amounts due the Executive hereunder. The Executive will concurrently provide a written resignation from any office held in the Company or any affiliate as of Effective Date of Termination.

**Section 7.9 Manner of Payment**

The Company will pay the amounts referred to in Section 7.5, Section 7.6 and Section 7.7 herein in a lump sum payment within seven business days after receipt by the Company of the executed full and final release referred to in <u>Section 7.8</u> herein. Payment over time arrangements may be made by mutual agreement.

**Section 7.10 Return of Assets and Documents**

All documents and materials in any form or medium and including, but not limited to, files, forms, brochures, books, correspondence, memoranda, manuals and lists (including lists of customers, suppliers, products and prices), all equipment and accessories and again including, but not being limited to, leased automobiles, computers, computer disks, software products, cellular phones and personal digital assistants, all keys, building access cards, parking passes, credit cards, and other similar items pertaining to the business of the Company that may come into the possession or control of the Executive, will at all times remain the property of the Company and, on termination of the Executive's employment for any reason, the Executive will promptly deliver to the Company all property of the Company in the possession of the Executive or directly or indirectly under the control of the Executive, and will not reproduce or copy any such property or other property of the Company.

**ARTICLE 8- CONFIDENTIALITY**

**Section 8.1 Confidential Information**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Executive acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Executive may, during the course of employment with the Company, acquire information which is confidential
in nature or of great value to the Company and its subsidiaries including, without limitation:

{1} matters or subjects concerning the Company's budgets, business plans, capital and operating cost estimates, computer programs, corporate assets, cost and pricing data, customer listings, employees, finances, financial reports, licensees, licensors, market projections, marketing strategies, opportunities, products or devices, future projects or products, projects or products under consideration, product release schedules, relationships with third parties, sales forecasts, sales histories, suppliers, vendors, and any other matter relating to the business, financial affairs, operations, products, projects, facilities, or services of the Company, whether in the form of correspondence, data, files, information, notes, records, or any other form, including copies or excerpts thereof;

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

{2} any knowledge or information, regardless of form, that is proprietary to or maintained in confidence by the Company, including any knowledge or information relating to algorithms, analyses, chemical formulae, chemical materials, concepts, data, diagrams, designs, discoveries, drawings, equipment, flow charts, engineering, functionality, ideas, improvements, interactive elements, interfaces, inventions, know-how, manufacturing, models, outlines, patents, patent applications, plans, practices, procedures, processes, processing conditions (temperature, pressure, duration and others), research and development projects and findings, scripts, specifications, studies, systems, technical techniques, technology, trade secrets, treatments, working papers, and any other matter relating to the creations, intellectual properties, inventions, or technologies of the Company that is (i) disclosed by the Company or directly on its behalf through any means of communication (whether electronic, written, oral, aural or visual) or personal inspection, to the Executive or (ii) in any way otherwise directly accessed by the Executive whether in the form of correspondence, data, files, information, notes, records, or any other form, including copies or excerpts thereof;

{3} anything (whether tangible or intangible) which is labeled "Confidential" or is identified at the time of such disclosure or access as being confidential;

{4} any knowledge or information described above which the Company obtains from a third party and which the Company treats as proprietary or confidential information; and

{5} anything (whether tangible or intangible) that is a derivative of the Confidential Information or that is created or compiled by the Executive and is, in whole or in part, based upon or contains any portion of the Confidential Information.

(collectively, the "**Confidential Information**");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the disclosure of any Confidential Information to any competitor, customer, client or supplier of the
Company, any unauthorized personnel of the Company, or any third party would be highly detrimental to the best interests of the Company;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the right to maintain the confidentiality of Confidential Information, and the right to preserve the Company's
goodwill, constitute proprietary rights which the Company is entitled to protect.

(2) The Executive will, while employed with the Company and at all times thereafter:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) hold all Confidential Information that the Executive acquires in trust for the sole benefit of the Company and in strictest confidence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) protect all Confidential Information from disclosure and will not take any action that could reasonably
be expected to result in any Confidential Information losing its character as Confidential Information, and will take all reasonable lawful
action necessary to prevent any Confidential Information from losing its status as Confidential Information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) neither, except as required in the course of performing duties and responsibilities under this Agreement,
directly or indirectly use, publish, disseminate or otherwise disclose any Confidential Information to any unauthorized
personnel of the Company or to any third party, nor use Confidential Information for any purpose other than the purposes of the Company,
without the prior written consent of the Company, which consent may be withheld in the Company's sole and absolute discretion.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Notwithstanding the foregoing, Confidential Information shall not include any information which:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is or becomes public knowledge through no fault of the Executive; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is independently developed by the Executive outside the scope of his employment duties to the Corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) is disclosed by the Corporation to another person or entity without any restriction on its use or disclosure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) is or becomes lawfully available to the Executive on an unrestricted basis from a source other than the Corporation.

(4) The restrictions on the Executive's use or disclosure of all Confidential Information, as set forth in this Article 8, shall continue following the expiration or termination of the Executive's employment with the Company regardless of the reasons for or manner of such termination.

(5) Notwithstanding Section 8.1(2) herein, the Executive may, if and solely to the extent required by lawful subpoena or other lawful process, disclose Confidential Information but, to the extent possible, shall first notify the Company of each such requirement so that the Company may seek an appropriate protective order or waive compliance with the provisions of this Agreement. The Executive will co-operate fully with the Company at the expense of the Company in seeking any such protective order.

**ARTICLE 9- NON-COMPETITION AND NON-SOLICITATION**

**Section 9.1 Non-Competition and Payments for Enforcement by the Company during Restricted Period**

(1) The Executive acknowledges that the Executive's Services under this Agreement are of such a nature which give the Executive value to the Company; the loss of which cannot adequately be compensated in damages or by an action at law. In addition to, and not in limitation of any other restrictive covenant which may be binding on the Executive, the Executive shall not anywhere in Canada, for a period equal to the length of time determined by severance in lieu of notice, after the termination of this Agreement (the "**Restricted Period**" herein) for any reason in any manner whatsoever:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) carry on, engage in, or be concerned with or interested in; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) permit the Executive's name or any part thereof to in any manner whatsoever to be used or connected
with any business that is, or any interest in any business that is, or involves to any material degree, a business competitive to the
Business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For the purposes of this Agreement, the "**Business of the Company**" means:

A high-end materials technology developer for the energy storage market.

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**NANO INNOVATIONS INC.**

(2) The Executive agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) all restrictions contained in Section
 9.1 herein are reasonable and valid in the circumstances and all defences to the strict enforcement
 thereof by the Company are hereby waived by the Executive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the remedy available to the Company at
 law for any breach by him of Section 9.1 herein will be inadequate and that the Company,
 on any application to a Court, shall be entitled to temporary and permanent injunctive relief
 against the Executive without the necessity of proving actual damage to the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if the foregoing covenant is found to be unreasonable to any extent by a court of competent jurisdiction
adjudicating upon the validity of the covenant, whether as to the scope of the restriction, the area of the restriction or the duration
of the restriction, then such restriction shall be reduced to that which is in fact declared reasonable by such court, or a subsequent
court of competent jurisdiction, requested to make such a declaration.

**Section 9.2 Non-Solicitation**

The Executive hereby agrees that the Executive will not, during the period commencing on the Effective Date hereof and ending one year following the termination or expiration of this Agreement for any reason, be a party to or abet any solicitation of employees, customers, clients, referral services, consultants or suppliers of the Company or any of its subsidiaries, to transfer business from the Company or any of its subsidiaries to any other person, or seek in any way to persuade or entice any employee of the Company or any of its subsidiaries to leave that employment or to be a party to or abet any such action.

**ARTICLE 10- OWNERSHIP OF INTELLECTUAL PROPERTY**

**Section 10.1 Definitions**

In this Agreement, "**Inventions**" means, collectively, all:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) discoveries, inventions, ideas, suggestions, reports, documents, designs, technology, methodologies, compilations,
concepts, procedures, processes, products, protocols, treatments, methods, tests, improvements, work product and computer programs (including
all source code, object code, compilers, libraries and developer tools, and any manuals, descriptions, data files, resource files and
other such materials relating thereto) (collectively the "**Materials** "), and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) each and every part of the foregoing, that are conceived, developed, reduced to practice or otherwise
made by the Executive either alone or with others or, in any way, relate to the present or proposed programs, services, products or business
of the Company, or to tasks assigned to the Executive in connection with the Executive's duties or in connection with any research
or development carried on or planned by the Company, where such Inventions are conceived, developed, reduced to practice or otherwise
made during the Executive's employment or during regular working hours and whether or not the Executive is specifically instructed to conceive,
develop, reduce to practice or otherwise make same.

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**Section 10.2 Exclusive Property**

The Executive agrees that all Inventions, and any and all services and products which embody, emulate or employ any such Invention, shall be the sole property of the Company and all copyrights, patents, patent rights, trademarks, service marks, reproduction rights and all other proprietary title, rights and interest in and to each such Invention, whether or not registrable (collectively, the "**Intellectual Property Rights**"), shall belong exclusively to the Company.

**Section 10.3 Work for Hire**

For purposes of all applicable copyright laws to the extent, if any, that such laws are applicable to any such Invention or any such service or product, it shall be considered a work made for hire and the Company shall be considered the author thereof, including without limitation under the pertinent laws and regulations of the United States, including but not limited to all provisions of Title 17 of the United States Code, as amended from time to time.

**Section 10.4 Disclosure**

The Executive will promptly disclose to the Company, or any persons designated by it, all Inventions and all such services or products.

**Section 10.5 Assignment**

The Executive hereby assigns and further agrees to, from time to time as such Inventions arise, assign to the Company or its nominee (or their respective successors or assigns) all of the Executive's right, title and interest in and to the Inventions and the Intellectual Property Rights without further payment by the Company.

**Section 10.6 Moral Rights**

The Executive hereby waives and further agrees to, from time to time as such Inventions arise, waive for the benefit of the Company and its successors or assigns all the Executive's moral rights in respect of the Inventions.

**Section 10.7 Further Assistance**

The Executive agrees to assist the Company in every proper way (but at the Company's expense) to obtain and, from time to time, at the Company's expense, enforce the Intellectual Property Rights and to the Inventions in any and all countries, and to that end will execute all documents for use in applying for, obtaining and enforcing the Intellectual Property Rights in and to such Inventions as the Company may desire, together with any assignments of such Inventions to the Company or persons designated by it. The Executive's obligation to assist the Company in obtaining and enforcing such Intellectual Property Rights in any and all countries shall continue beyond the termination of this Agreement for a period of two (2) years.

**Section 10.8 Representations and Warranties**

The Executive hereby represents and warrants that as of the Effective Date of this Agreement and during the term of this Agreement, the Executive is subject to no contractual or other restriction or obligation that will in any manner limit the Executive's obligations under this Agreement or activities on behalf of the Company. The Executive hereby represents and warrants to the Company that the Executive has no continuing obligations to any person (a) with respect to any Invention or (b) that require the Executive not to disclose the same.

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**NANO INNOVATIONS INC.**

**ARTICLE 11- ARBITRATION**

**Section 11.1 Matters for Arbitration**

Except for matters of indemnity or in the case of urgency to prevent material harm to a substantive right or asset, the Parties agree that all questions or matters in dispute with respect to this Agreement shall be submitted to arbitration pursuant to the terms hereof. This provision shall not prejudice a Party from seeking a Court order or assistance to garnish or secure sums or to seek summary remedy for such matters as counsel may consider amenable to summary proceedings.

**Section 11.2 Notice**

It shall be a condition precedent to the right of any Party to submit any matter to arbitration pursuant to the provisions hereof that any Party intending to refer any matter to arbitration shall have given not less than five business days' prior written notice of its intention to do so to the other Party together with particulars of the matter in dispute. On the expiration of such five business days the Party who gave such notice may proceed to refer the dispute to arbitration as provided for herein. Except for matters of indemnity or in the case of urgency to prevent material harm to a substantive right or asset, the Parties agree that all questions or matters in dispute with respect to this Agreement shall be submitted to arbitration pursuant to the terms hereof. This provision shall not prejudice a Party from seeking a Court order or assistance to garnish or secure sums or to seek summary remedy for such matters as counsel may consider amenable to summary proceedings.

**Section 11.3 Appointments**

The Party desiring arbitration shall propose three arbitrators to the other Party. The other Party may choose one of these arbitrators to act as single arbitrator or propose alternatives. In case the parties cannot agree on a single arbitrator within 5 business days, the Party desiring arbitration shall appoint one arbitrator, and shall notify the other Party of such appointment, and the other Party shall, within five business days after receiving such notice, appoint an arbitrator, and the two arbitrators so named, before proceeding to act, shall, within five business days of the appointment of the last appointed arbitrator, unanimously agree on the appointment of a third arbitrator, to act with them and be chairperson of the arbitration herein provided for. If the other Party shall fail to appoint an arbitrator within five business days after receiving notice of the appointment of the first arbitrator, and if the two arbitrators appointed by the Parties shall be unable to agree on the appointment of the chairperson, the chairperson shall be appointed in accordance with the provisions of the British Columbia *Arbitration Act*, SBC 2020, c2 (the "**Arbitration Act**"). Except as specifically otherwise provided in this section, the arbitration herein provided for shall be conducted in accordance with such Arbitration Act. The chairperson, or in the case where only one arbitrator is appointed, the single arbitrator, shall fix a time and place for the purpose of hearing the evidence and representations of the Parties, and the chairperson shall preside over the arbitration and determine all questions of procedure not provided for by the Arbitration Act or this section. After hearing any evidence and representations that the Parties may submit, the single arbitrator, or the arbitrators, as the case may be, shall make an award and reduce the same to writing, and deliver one copy thereof to each of the Parties. The expense of the arbitration shall be paid as specified in the award.

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

**Section 11.4 Award**

The Parties agree that the award of a majority of the arbitrators, or in the case of a single arbitrator, of such arbitrator, shall be final and binding upon each of them, except on questions of law, in which case such questions shall be appealable to the British Columbia Court of Appeal.

**ARTICLE 12- OTHER PROVISIONS**

**Section 12.1 Waivers and Amendments**

This Agreement may be amended, modified, superseded, cancelled, renewed or extended, only by a written agreement between the Parties. Failure or delay by either Party to enforce compliance with any term or condition of this Agreement shall not constitute a waiver of such term or condition.

**Section 12.2 Entire Agreement**

This Agreement constitutes the entire understanding and agreement of the parties hereto concerning the subject matter hereof and supersedes all prior or contemporaneous written or oral understandings or agreements of the parties, and there are no other agreements or understandings between the parties.

**Section 12.3 No Representation or Claims**

The Executive agrees that the Executive has not been induced to enter into this Agreement by reason of any statement, representation, understanding or promise not expressly set out in this Agreement. The Executive has no claim against the Company arising from any Services provided by the Executive to the Company in any capacity prior to the effective date of this Agreement.

**Section 12.4 Governing Law**

The situs of this Agreement is Vancouver, British Columbia, Canada, and for all purposes this Agreement will be governed exclusively by and construed and enforced in accordance with the laws prevailing in the Province of British Columbia, Canada, and the federal laws of Canada applicable thereto. Notwithstanding the foregoing, any matters appurtenant hereto which are covered by United States securities and/or intellectual property laws shall be governed by and construed and enforced in accordance therewith.

**Section 12.5 Notices**

Any notice or other communication or writing required or permitted to be given under this Agreement or for the purposes of this Agreement will be in writing and will be sufficiently given if delivered personally, or if feasible transmitted by facsimile transmission (with original to follow by mail) or other form of recorded communication, tested prior to transmission, to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if to the Company:

NANO INNOVATIONS INC. c/o Suite 307 1477 West Pender Street Vancouver, BC V6G 2S3 Attention: Arni Johannson <br> E-mail: <u>arni@canadiannexus.com</u> or <u>rene@rhdlawcorp.com</u>

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**NANO INNOVATIONS INC.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if to the Executive:

R. MICHAEL STEELE 227 – 23 Avenue N.W. Calgary, AB, T2M 1S3 <br>E-mail: michael@granitecreekcapital.com

or to such other address as the Party to whom such notice is to be given will have last notified the Party giving the same in the manner provided in this section. Any notice so delivered will be deemed to have been given and received on the day it is so delivered at such address; provided that such day is not a Business Day (as herein defined) then the notice will be deemed to have been given and received on the Business Day next following the day it is so delivered. Any notice so transmitted by facsimile transmission, email or other form of recorded communication will be deemed to have been given and received on the day of its confirmed transmission (as confirmed by the transmitting medium), provided that if such day is not a Business Day then the notice will be deemed to have been given and received on the Business Day next following such day. "Business Day" means any day that is not a Saturday, Sunday or civic or statutory holiday in the Province of British Columbia, Canada.

**Section 12.6 Assignment**

The Executive may not assign this Agreement or any right or obligation under it.

**Section 12.7 Survival**

The obligations of Article 7, Article 8, Article 9, and Article 10 shall survive the termination of this Agreement.

**Section 12.8 Severability**

If any provision of this Agreement is determined to be invalid or unenforceable in whole or in part, such invalidity or unenforceability shall attach only to such provision or part thereof and the remaining part of such provision and all other provisions hereof shall continue in full force and effect.

**Section 12.9 Independent Legal Advice**

The Executive acknowledges that the Company has recommended that the Executive obtain independent legal advice with respect to this Agreement, and that the Executive has had a reasonable opportunity to do so prior to executing this Agreement.

**Section 12.10 Enurement**

This Agreement will enure to the benefit of and will be binding upon the Parties and their respective heirs, executors, administrators and assigns.

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

**Section 12.11 Further Assurances**

The Parties will from time to time after the execution of this Agreement make, do, execute or cause or permit to be made, done or executed, all such further and other acts, deeds, things, devices and assurances in law whatsoever as may be required to give full force and effect to this Agreement.

**Section 12.12 Personal Information**

The Executive acknowledges that the Company is obligated to comply with the British Columbia Personal Information Protection Act and with any other applicable legislation governing the collection, use, storage and disclosure of personal information. The Executive agrees to comply with all Company personal information protection policies and with other policies, controls and practices as they may exist, from time to time, in seeking to ensure that the Executive and the Company engage only in lawful collection, storage, use and disclosure of personal information. The Executive acknowledges that the Executive may be required by the Company to complete a TSXV form 2A (personal information) and have it notarized and delivered to the TSXV (or such other similar form as may be required by an applicable exchange).

**Section 12.13 Captions**

The headings, captions, article, section and subsection numbers appearing in this Agreement are inserted for convenience of reference only and shall in no way define, limit, construe or describe the scope or intent of this Agreement nor in any way affect this Agreement.

**Section 12.14 Counterparts**

This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

**<**SIGNATURE PAGE FOLLOWS**>**

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**NANO INNOVATIONS INC.**

**IN WITNESS WHEREOF** the Parties have executed this agreement as of the date inserted on page one with intended effect from the Effective Date.

---

| | |
|:---|:---|
| **NANO INNOVATIONS INC.** | **NANO INNOVATIONS INC.** |
| By: | /s/ Arni Johannson |
|  | Name: Arni Johannson |
|  | Title: Director |

---

---

| | |
|:---|:---|
| Signed, Sealed and Delivered by **R. Michael Steele**) |  |
| in the presence of:) |  |
| /s/ Michael G Babulic) |  |
| Witness (Signature) |  |
| Michael G Babulic) |  |
| Name (please print) | **R. MICHAEL STEELE** |
| 244 – 23 Avenue NW) |  |
| Address) |  |
| Calgavy, AB) |  |
| City, Province) |  |
| Retired) |  |
| Occupation) |  |

---

EXECUTIVE EMPLOYMENT AGREEMENT

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**NANO INNOVATIONS INC.**

**Schedule "A" – CFO Services - DRAFT**

The Executive's title shall be Chief Financial Officer.

As a senior officer and executive of Nano Innovations Inc., the Executive shall report directly to the Chief Executive Officer and/or the Board.

The Executive is accountable for the administrative, financial, and risk management operations of the company, to include the development of a financial and operational strategy, metrics tied to that strategy, and the ongoing development and monitoring of control systems designed to preserve company assets and report accurate financial results. Principal accountabilities are:

**Planning**

&nbsp;&nbsp;&nbsp;&nbsp;1. Assist in formulating the company's future direction and supporting tactical initiatives

&nbsp;&nbsp;&nbsp;&nbsp;2. Monitor and direct the implementation of strategic business plans

&nbsp;&nbsp;&nbsp;&nbsp;3. Develop financial and tax strategies

&nbsp;&nbsp;&nbsp;&nbsp;4. Manage the capital request and budgeting processes

&nbsp;&nbsp;&nbsp;&nbsp;5. Develop performance measures that support the company's strategic direction

**Operations**

&nbsp;&nbsp;&nbsp;&nbsp;1. Participate in key decisions as a member of the executive management team

&nbsp;&nbsp;&nbsp;&nbsp;2. Maintain in-depth relations with all members of the management team

&nbsp;&nbsp;&nbsp;&nbsp;3. Manage the accounting, investor relations, legal, tax, treasury and management information systems (MIS) functions

&nbsp;&nbsp;&nbsp;&nbsp;4. Oversee the financial operations of subsidiary companies and foreign operations

&nbsp;&nbsp;&nbsp;&nbsp;5. Manage any third parties to which functions have been outsourced

&nbsp;&nbsp;&nbsp;&nbsp;6. Oversee the company's transaction processing systems

&nbsp;&nbsp;&nbsp;&nbsp;7. Implement operational best practices

&nbsp;&nbsp;&nbsp;&nbsp;8. Oversee employee benefit plans, with particular emphasis on maximizing a cost-effective benefits package

&nbsp;&nbsp;&nbsp;&nbsp;9. Supervise acquisition due diligence and negotiate acquisitions

**Financial Information**

&nbsp;&nbsp;&nbsp;&nbsp;1. Oversee the issuance of financial information

&nbsp;&nbsp;&nbsp;&nbsp;2. Personally review and approve all filings with the applicable securities regulators

&nbsp;&nbsp;&nbsp;&nbsp;3. Report financial results to the board of directors

**Risk Management**

&nbsp;&nbsp;&nbsp;&nbsp;1. Understand and mitigate key elements of the company's risk profile

&nbsp;&nbsp;&nbsp;&nbsp;2. Monitor all open legal issues involving the company, and legal issues affecting the industry

&nbsp;&nbsp;&nbsp;&nbsp;3. Construct and monitor reliable control systems

&nbsp;&nbsp;&nbsp;&nbsp;4. Maintain appropriate insurance coverage

&nbsp;&nbsp;&nbsp;&nbsp;5. Ensure that the company complies with all legal and regulatory requirements

&nbsp;&nbsp;&nbsp;&nbsp;6. Ensure that record keeping meets the requirements of auditors and government agencies

&nbsp;&nbsp;&nbsp;&nbsp;7. Report risk issues to the audit committee of the board of directors

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**NANO INNOVATIONS INC.**

&nbsp;&nbsp;&nbsp;&nbsp;8. Maintain relations with external auditors and investigate their
findings and recommendations

**Funding**

&nbsp;&nbsp;&nbsp;&nbsp;1. Monitor cash balances and cash forecasts

&nbsp;&nbsp;&nbsp;&nbsp;2. Arrange for debt and equity financing in concert with the CEO, Investment Bankers, Advisors and the Board of Directors

&nbsp;&nbsp;&nbsp;&nbsp;3. Invest funds and oversee treasury functions

**Third Parties**

&nbsp;&nbsp;&nbsp;&nbsp;1. Participate in conference calls with the investment community

&nbsp;&nbsp;&nbsp;&nbsp;2. Maintain banking relationships

&nbsp;&nbsp;&nbsp;&nbsp;3. Represent the company with investment bankers and investors

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**NANO INNOVATIONS INC.**

**Schedule "B" – Current Director, Advisor and Officer Appointments**

A. Granite Creek Capital Inc. (Private)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: | President and Director (Officer)  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business: | Private holding and consulting firm owned by R. Michael Steele (50%) and Diana Lyn Steele (50%). |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comments: | Will become inactive during the CFO's tenure. |

---

B. Alberta Society of Artists (Non-profit)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: | Treasurer and Director (Officer) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business: | Non-profit association of professional artists with a small gallery in Calgary and a contract to deliver art content to communities across Alberta from the Alberta Foundation for the Arts.<br>|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comments: | Acting as a volunteer on a two-year term. |

---

C. Noble Industrial Ltd. (Private)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: | Director/Advisor (Non-Officer) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business: | Manufacture of portable/modular commercial, industrial and residential units. Currently under contract with Alberta Infrastructure for portable schools. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comments: | Completing a change of control share purchase by end of April. The buyers have asked me to continue to provide advice by either acting as a Director or Advisor, however it will be minimal engagement. |

---

D. Span West Building Corp. (Private)

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title: | Contract CFO (Non-Officer) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Business: | Multi-family residential developer located in Saskatoon. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Comments: | I will need to transition this client of The CFO Centre to a new CFO. From the date of notice my obligation will be a maximum of four days. I would like to notify them the week of April 19, 2021 and conclude the transition by May 28, 2021. |

---

EXECUTIVE EMPLOYMENT AGREEMENT

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## Exhibit 21.1

**Exhibit 21.1** 

**Subsidiaries of the Registrant** 

---

| | |
|:---|:---|
| **Legal Name of Subsidiary** | **Jurisdiction<br> of Organization** |
| AdvEn Industries Inc. | Alberta, Canada |

---