Document:

Exhibit

 

GUARANTEE
TO:    PRINCE EDWARD ISLAND CENTURY 2000 FUND INC., a body corporate, duly incorporated under the laws of the Province of Prince Edward Island.
IN CONSIDERATION of Prince Edward Island Century 2000 Fund Inc., (hereinafter called the “Lender”), dealing with Aqua Bounty Canada Inc. (hereinafter referred to as the “Borrower”), the undersigned and each of them (if more than one) hereby jointly and severally guarantees payment to the Lender of all present and future debts and liabilities (hereinafter called the “liabilities”), direct or indirect, absolute or contingent, matured or otherwise, now or at any time and from time to time hereafter due or owing to the Lender, from or by the Borrower, whether incurred by the Borrower alone or jointly with any corporation, person or persons or otherwise howsoever.
AND the undersigned and each of them (if more than one), hereby jointly and severally agree(s) with the Lender as follows:
		
	1.
	In this Guarantee, the word Guarantor shall mean the undersigned and if there is more than one, it shall mean each of them.

		
	2.
	This Guarantee shall not be affected by the death or loss or diminution of capacity of the Borrower or of the Guarantor or by any change in the name of the Borrower or in the membership of the firm of the Borrower or through the death or retirement of one or more partners or the introduction of one or more partners or otherwise, or by the acquisition of the business of the Borrower by a corporation, firm or person or by any change whatsoever in the objects, capital structure or constitution of the Borrower, or by the Borrower, or the business of the Borrower, being amalgamated with a corporation but shall, notwithstanding the happening of any such event, continue to exist and apply to the full extent as if such event had not happened, and shall apply to all the liabilities whether theretofore or thereafter incurred or arising and in this instrument the word “Borrower” shall include every such firm and corporation.

		
	3.
	All monies, advances renewal and credits in fact borrowed or obtained from the Lender shall be deemed to form part of the liabilities, notwithstanding any lack or limitation of status or of power, incapacity or disability of the Borrower or of the directors, partners or agents thereof, or that the Borrower may not be a legal or suable entity, or any irregularity, defect or informality in the borrowing or obtaining of such monies, advances, renewals or credits, the whole whether known to the Lender or not; and any sum which may not be recoverable from the Guarantor on the footing of a guarantee shall be recoverable from the Guarantor as sole and principal debtor in respect thereof and shall be paid to the Lender on demand with interest and accessories as herein provided.

		
	4.
	It is further agreed that this shall be a continuing Guarantee, and shall cover and secure any ultimate balance owing to the Lender.

		
	5.
	This Guarantee will not be diminished or modified on account of any act of the Lender which would prevent subrogation operating in favour of the Guarantor.  It is agreed that the Lender without exonerating in whole or in part the Guarantor, may grant time, renewals, extensions, indulgences, releases and discharges to, may take securities from, and give up or release any or part of the securities held, may abstain from taking, perfecting, registering or renewing securities or from realizing on securities, may accept compositions and otherwise deal with the borrower and with any other person or persons,  including any of the Guarantors, and dispose of any securities held by the Lender as it may see fit and that all dividends, compositions and monies received by the Lender from the Borrower or from any other person or estate, capable of being applied by the Lender in reduction of the liabilities hereby guaranteed, shall be considered for all purposes as payment in gross which the Lender shall have the right to apply as it may see fit, not being bound by the law of imputation, and the Lender shall be entitled to prove against the estate of the Borrower upon any insolvency or winding up, in respect of the whole of the said liabilities.  The Guarantor shall have no right to be subrogated to the Lender until the Lender shall have received payment in full of its claims against the Borrower with interest and costs.

		
	6.
	The Lender shall not be obligated to exhaust its recourse against the Borrower or other persons or the securities it may hold before being entitled to payment from the Guarantor of all and every of the liabilities hereby guaranteed and it shall not be obliged to offer or deliver its securities before its whole claim has been paid.  The Guarantor renounces all benefits of discussion and division.

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	7.
	It is further hereby expressly declared that if there is more than one Guarantor of the liabilities or any part thereof, the release of any of the Guarantors from his or their liability thereunder shall not affect the liability of the remaining Guarantor or Guarantors which shall remain unimpaired and still in full force and effect as if the Guarantor or Guarantors so released had not been a Guarantor of the said liabilities or any part thereof.

		
	8.
	All indebtedness and liability, present and future of the Borrower to the Guarantor are hereby assigned to the Lender and postponed to the liabilities of the Borrower to the Lender, present and future.  All monies received by the Guarantor or his representatives shall be held as trustee for the Lender and shall be paid over to the Lender.

		
	9.
	The Guarantor shall make payment to the Lender of the amount of his liability forthwith after demand therefore is made in writing.  Such demand shall be deemed to have been effectually made when an envelope containing it addressed to the Guarantor at his last address known to the Lender is deposited postage prepaid in the Post Office.  The liability of the Guarantor shall bear interest from the date of such demand at the rate or rates then applicable to the liabilities of the Borrower to the Lender.  All payments to the Lender hereunder shall be made to the Lender at its Head Office.

		
	10.
	Notwithstanding anything set out in any security, taken from the Borrower, the Lender will not in any way be responsible for either the holding or the supervision of insurance of insurance policies required to be maintained under any covenants to insure contained in any said security or the verification of the compliance with respect to any such covenants to insure and the Lender’s permissive power to place insurance on any assets mortgaged to it by the Borrower and contained in any such security is in its sole and absolute discretion.  The Guarantor acknowledges that the Lender’s action or lack of action in such holding, supervision, verification, or in its permissive powers shall in no way diminish the Guarantor’s liability hereunder.

		
	11.
	This Guarantee shall be operative and binding upon every signatory hereof notwithstanding the nonexecution hereof by and other proposed signatory or signatories, and the undersigned acknowledges that this Guarantee has been delivered free of any conditions and that no representations have been made to the undersigned affecting the liability of the undersigned under this Guarantee save as may be specifically embodied herein, and agrees that this Guarantee is in addition to and not in substitution for any other guarantees held or which may hereafter be held by the Lender, by whomsoever given, and any present or future obligation to the Lender incurred or arising otherwise than under a Guarantee or the undersigned or any of them, or of any other obligant, whether bound with or apart from the Borrower; excepting, any Guarantee accepted for cancellation on delivery of this instrument.

		
	12.
	This Guarantee shall be binding upon the undersigned and any of them, if more than one, jointly and severally between themselves and with the Borrower and also upon the heirs, executors, administrators and successors and assigns of the Guarantor and will extend to the benefit of the successors and assigns of the Lender.

		
	13.
	The undersigned and each of them shall be bound by any accounts settled between the Lender and the Borrower, and if no such account has been so settled immediately before demand of payment under this Guarantee any account stated by the Lender shall be accepted by the undersigned and each of them as conclusive evidence of the amount which at the date of the account so stated is due by the Borrower to the Lender or remains unpaid by the Borrower to the Lender.

		
	14.
	This Guarantee shall be construed in accordance with the laws of the Province of Prince Edward Island and the Guarantor agrees that any legal suit, action or proceeding arising out of or relating to this Guarantee may be instituted in the Courts of such province, and the Guarantor hereby accepts and irrevocably submits to the jurisdiction of the said Courts, and acknowledges their competence and agrees to be bound by any judgment thereof, provided that nothing herein shall limit the Lender’s right to bring proceedings against the Guarantor elsewhere.

		
	15.
	The undersigned or any of them may, by notice in writing delivered to the Lender determine their or his liability under this Guarantee in respect of liabilities thereafter incurred or arising but not in respect of any liabilities theretofore incurred or arising even though not then matured, provided, however, that notwithstanding receipt of any such notice the Lender may fulfill any requirements of the Borrower based on agreements expressed or implied made prior to the receipt of such notice and any resulting liabilities shall be covered by this Guarantee; and provided further that in the event of the

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determination of this Guarantee as to one or more of the undersigned it shall remain a continuing Guarantee as to the other or others of the undersigned.
		
	16.
	The undersigned and each of them if more than one, acknowledges having read the contents of this Guarantee before signing it and declares that he or they, if more than one, understands the terms, conditions and undertakings contained herein.

IN WITNESS WHEREOF this Guarantee has been duly executed at Maynard, in the State of Massachusetts, this     9th     day of October, 2018.
	
				
	SIGNED SEALED & ATTESTED TO
in the presence of:
	 
	AQUA BOUNTY TECHNOLOGIES INC.

	 
	Per:
	/s/ David A. Frank

	/s/ Christopher H. Martin
	 

	Witness
	Per:Exhibit 4.1

 

THIS WARRANT AND THE SECURITIES ISSUABLE
UPON EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS,
AND, ACCORDINGLY, MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED UNLESS (I) SUCH SECURITIES
HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933, AS AMENDED, (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO
RULE 144, OR (III) THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSFER MAY LAWFULLY
BE MADE WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

 

	
        Warrant to purchase 20,000,000 shares of
        Common Stock

        Subject to the vesting requirements set
        forth herein
	October __, 2018

 

BESPOKE
EXTRACTS, INC.

 

Warrant Agreement

 

Bespoke Extracts, Inc.,
a Nevada corporation (the “Company”), certifies that, for value received, Niquana Noel , or his successors or
assigns (each person or entity holding all or a part of this Warrant being referred to as a “Holder”) is the
registered holder of this Warrant (the “Warrant”) to subscribe for the purchase of 20,000,000 shares (the “Warrant
Shares”) of the Company’s common stock, par value $0.001 per share (the “Common Stock”). The
Warrant entitles the Holder to purchase from the Company at any time prior to the Expiration Date (as defined below) the Warrant
Shares for $0.0001 per Warrant Share (the “Exercise Price”), on the terms and conditions hereinafter provided.
The Exercise Price and the number of Warrant Shares purchasable upon exercise hereof are subject to adjustment as provided herein.

 

1. Expiration
Date; Vesting; Exercise

 

1.1 
Expiration Date. The Warrant shall expire at 5:30 pm New York time on October _, 2019 (the “Expiration Date”).

 

1.2 Vesting.
This Warrant shall be exercisable immediately; provided, however, that the Warrant Shares, once issued to the Holder, shall
be returned to the Company for cancellation as follows:

 

1.2.1 The
Holder shall return 80% of the Warrant Shares to the Company if the holder is not serving as Chief Executive Officer of the Company
pursuant to the terms and conditions of that certain Employment Agreement by and between the Company and the Holder dated as of
the same date hereof (the “Employment Agreement”) as of October __, 2019 (the first anniversary of the Employment Agreement);

  

1.2.2 The
Holder shall return 60% of the Warrant Shares to the Company if the Holder is not serving as the Chief Executive Officer of the
Company pursuant to the terms and conditions of the Employment Agreement as of the second anniversary of the Employment Agreement
(October __, 2020);

 

1.2.3   The
Holder shall return 40% of the Warrant Shares to the Company if the Holder is not serving as Chief Executive Officer of the Company
pursuant to the terms and conditions of the Employment Agreement as of the third anniversary of the Employment Agreement (October
__, 2021);

 

1.2.4 The
Holder shall return 20% of the Warrant Shares to the Company if the Holder is not serving as the Chief Executive Officer of the
Company pursuant to the terms and conditions of the Employment Agreement as of the fourth anniversary of the Employment Agreement
(October __, 2022); and

 

1.3 Manner
of Exercise. The vested portion of this Warrant is exercisable by delivery to the Company of the following (the “Exercise
Documents”): (a) this Warrant, (b) a written notice of election to exercise the Warrant as set forth on Exhibit
A hereto; and (c) payment of the Exercise Price in cash or by check. Within three (3) business days following receipt of
the foregoing, the Company shall execute and deliver to the Holder: (a) a certificate or certificates representing the aggregate
number of Warrant Shares purchased by the Holder, and (b) if less than all of the Warrant Shares evidenced by this Warrant are
purchased, a new warrant in form substantially identical hereto evidencing the right to purchase the remaining Warrant Shares not
so acquired by the Holder.

 

    1

     

    

 

2. Adjustments
of Exercise Price and Number and Kind of Warrant Shares

 

2.1 Stock
Dividends, Stock Splits, Combinations. In the event that the Company shall at any time hereafter (a) pay a dividend in Common
Stock or securities convertible into Common Stock; (b) subdivide or split its outstanding Common Stock; (c) combine its outstanding
Common Stock into a smaller number of shares; then the number of Warrant Shares exercisable pursuant hereto immediately after the
occurrence of any such event shall be adjusted so that the Holder thereafter may receive the number of Warrant Shares it would
have owned immediately following such action if it had exercised the Warrant immediately prior to such action and the Exercise
Price shall be adjusted to reflect such proportionate increases or decreases in the number of shares.

 

2.2 Reclassifications.
In case of any reclassification of the outstanding shares of Common Stock (other than a change covered by Section 2.1 hereof or
a change which solely affects the par value of such shares) or in the case of any merger or consolidation or merger in which the
Company is not the continuing corporation and which results in any reclassification or capital reorganization of the outstanding
shares),the Holder shall have the right thereafter (until the Expiration Date) to receive upon the exercise hereof, for the same
aggregate Exercise Price payable hereunder immediately prior to such event, the kind and amount of shares of stock or other securities
or property receivable upon such reclassification, capital reorganization, merger or consolidation, by a Holder of the number of
shares of Common Stock obtainable upon the exercise of the Warrant immediately prior to such event; and if any reclassification
also results in a change in shares covered by Section 2.1, then such adjustment shall be made pursuant to both this Section 2.2
and Section 2.1 (without duplication). The provisions of this Section 2.2 shall similarly apply to successive reclassifications,
capital reorganizations and mergers or consolidations, sales or other transfers.

  

3. Certificate
as to Adjustments. In each case of any adjustment in the Exercise Price, or number or type of shares issuable upon exercise
of these Warrant, the Chief Financial Officer of the Company shall compute such adjustment in accordance with the terms of this
Warrant and prepare a certificate setting forth such adjustment and showing in detail the facts upon which such adjustment is based,
including a statement of the adjusted Exercise Price. The Company shall promptly send (by facsimile and by either first class mail,
postage prepaid or overnight delivery) a copy of each such certificate to the Holder.

 

4. Loss
or Mutilation. Upon receipt of evidence reasonably satisfactory to the Company of the ownership of and the loss, theft, destruction
or mutilation of this Warrant, and of an indemnity reasonably satisfactory to it, and (in the case of mutilation) upon surrender
and cancellation of these Warrants, the Company will execute and deliver in lieu thereof a new Warrant of like tenor as the lost,
stolen, destroyed or mutilated Warrant.

 

5. Representations
and Warranties of the Company. The Company hereby represents and warrants to Holder that:

 

5.1 Due
Authorization. All corporate action on the part of the Company necessary for the authorization, execution and delivery of this
Warrant has been duly taken. This Warrant constitutes a valid and binding obligation of the Company enforceable in accordance with
their terms, subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium, reorganization and similar
laws affecting creditors’ rights generally and to general equitable principles.

 

5.2 Organization.
The Company is a corporation duly organized, validly existing and in good standing under the laws of the state referenced in the
first paragraph of this Warrant and has all requisite corporate power to own, lease and operate its property and to carry on its
business as now being conducted and as currently proposed to be conducted.

 

5.3 Governmental
Consents. All consents, approvals, orders, authorizations or registrations, qualifications, declarations or filings with any
federal or state governmental authority on the part of the Company required in connection with the consummation of the transactions
contemplated herein have been obtained.

 

    2

     

    

 

6. Representations
and Warranties of Holder. Holder hereby represents and warrants to the Company that:

 

6.1 Holder
is acquiring the Warrant for its own account, for investment purposes only.

 

6.2 Holder
understands that an investment in the Warrant involves a high degree of risk, and Holder has the financial ability to bear the
economic risk of this investment in the Warrant, including a complete loss of such investment. Holder has adequate means for providing
for its current financial needs and has no need for liquidity with respect to this investment.

 

6.3 Holder
has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of associated
with the Warrant and in protecting its own interest in connection with this transaction.

 

6.4 Holder
understands that the Warrants have not been registered under the Securities Act of 1933, as amended (the “Securities Act”)
or under any state securities laws. Holder is familiar with the provisions of the Securities Act and Rule 144 thereunder and understands
that the restrictions on transfer on the Warrant may result in Holder being required to hold the Warrant for an indefinite period
of time.

 

 6.5 Holder
agrees not to sell, transfer, assign, gift, create a security interest in, or otherwise dispose of, with or without consideration
(collectively, “Transfer”) the Warrant or any part thereof except pursuant to an effective registration statement
under the Securities Act or an exemption from registration. As a further condition to any such Transfer, except in the event that
such Transfer is made pursuant to an effective registration statement under the Securities Act, if in the reasonable opinion of
counsel to the Company any Transfer of the Warrant by the contemplated transferee thereof would not be exempt from the registration
and prospectus delivery requirements of the Securities Act, the Company may require the contemplated transferee to furnish the
Company with an investment letter setting forth such information and agreements as may be reasonably requested by the Company to
ensure compliance by such transferee with the Securities Act.

 

7. Nontransferability.
Holder may not sell or transfer this Warrant or any part thereof to any person other than an affiliate of Holder without the
written consent of the Company.

 

8. Severability.
If any term, provision, covenant or restriction of this Warrant is held by a court of competent jurisdiction to be invalid,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Warrant shall remain in full
force and effect and shall in no way be affected, impaired or invalidated.

 

9. Notices.
All notices, requests, consents and other communications required hereunder shall be in writing and shall be effective when
delivered or, if delivered by registered or certified mail, postage prepaid, return receipt requested, shall be effective on the
third day following deposit in United States mail: to the Holder, at the Holder’s address of record initially on the register
of holders of warrants maintained by the Company and if addressed to the Company, at its principal executive offices.

 

10. No
Rights as Shareholder. The Holder shall have no rights as a shareholder of the Company with respect to the Warrant Shares issuable
upon exercise of the Warrant until the receipt by the Company of all of the Exercise Documents.

 

	 	BESPOKE EXTRACTS, INC.
	 	 	 
	 	             
	 	By:	Marc Yahr
	 	Its:	Sole Director

 

    3

     

    

 

 EXHIBIT A

NOTICE OF EXERCISE

(To be signed only upon exercise of the Warrants)

 

To:
 Bespoke Extracts, Inc. (the “Company”)

 

The undersigned hereby
elects to purchase shares of Common Stock (the “Warrant Shares”) of Bespoke Extracts, Inc. (the “Company”),
pursuant to the terms of the enclosed warrant (the “Warrant”). The undersigned tenders herewith payment of the
exercise price pursuant to the terms of the Warrant.

 

The undersigned hereby
represents and warrants to, and agrees with, the Company as follows:

 

1. Holder
is acquiring the Warrant Shares for its own account, for investment purposes only.

 

2. Holder
understands that an investment in the Warrant Shares involves a high degree of risk, and Holder has the financial ability to bear
the economic risk of this investment in the Warrant Shares, including a complete loss of such investment. Holder has adequate means
for providing for its current financial needs and has no need for liquidity with respect to this investment.

 

3. Holder
has such knowledge and experience in financial and business matters that it is capable of evaluating the merits and risks of an
investment in the Warrant Shares and in protecting its own interest in connection with this transaction.

 

4. Holder
understands that the Warrant Shares have not been registered under the Securities Act of 1933, as amended (the “Securities
Act“) or under any state securities laws. Holder is familiar with the provisions of the Securities Act and Rule 144 thereunder
and understands that the restrictions on transfer on the Warrant Shares may result in Holder being required to hold the Warrant
Shares for an indefinite period of time.

 

5. Holder
agrees not to sell, transfer, assign, gift, create a security interest in, or otherwise dispose of, with or without consideration
(collectively, “Transfer”) any of the Warrant Shares except pursuant to an effective registration statement
under the Securities Act or an exemption from registration. As a further condition to any such Transfer, except in the event that
such Transfer is made pursuant to an effective registration statement under the Securities Act, if in the reasonable opinion of
counsel to the Company any Transfer of the Warrant Shares by the contemplated transferee thereof would not be exempt from the registration
and prospectus delivery requirements of the Securities Act, the Company may require the contemplated transferee to furnish the
Company with an investment letter setting forth such information and agreements as may be reasonably requested by the Company to
ensure compliance by such transferee with the Securities Act.

 

Each certificate evidencing the Warrant
Shares will bear the following legend:

 

“THE SECURITIES REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE “ACT”) OR ANY APPLICABLE STATE SECURITIES
LAWS AND MAY NOT BE EXERCISED, SOLD, PLEDGED OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH SECURITIES
UNDER THE ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.”

 

Number of Warrants Exercised: ______________

 

Dated:   ____________________

 

By:   __________________

 

    4

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