Document:

Exhibit

EXHIBIT 10.2
AMENDMENT NO. 4 AND LIMITED WAIVER TO  
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT
This AMENDMENT NO. 4 AND LIMITED WAIVER TO LOAN AND SECURITY AGREEMENT (this “Amendment”), is entered into as of February 26, 2016, by and among OVERLAND STORAGE, INC., a California corporation (“US Borrower”), TANDBERG DATA GMBH, a limited liability company organized under the laws of Germany (“German Borrower”), SPHERE 3D CORP., an Ontario corporation (formerly known as Sphere 3D Corporation) (“Canadian Borrower” and together with US Borrower and German Borrower, collectively, the “Borrowers”), the Guarantors signatory hereto and SILICON VALLEY BANK, a California corporation (“Bank”). 
RECITALS
A.Bank and Borrowers have entered into to that certain Amended and Restated Loan and Security Agreement, dated as of March 19, 2014 (as amended, amended and restated, supplemented, restructured or otherwise modified, renewed or replaced from time to time, the “Loan Agreement”), pursuant to which Bank has extended and will make available to Borrowers certain advances of money;
B.Borrowers acknowledge that Borrowers are currently in default of the Loan Agreement for failing to comply with certain provisions of the Loan Agreement as set forth in Section 1 as of the time periods identified in Section 1 and such failure to comply constitutes an Event of Default (the “Existing Default”);
C.Borrowers desire that Bank (i) waive the Existing Default and (ii) amend the Loan Agreement upon the terms and conditions fully set forth herein; and
D.Subject to the representations and warranties of the Borrowers herein and upon the terms and conditions set forth in this Amendment, Bank is willing to provide the limited waiver contained herein and so amend the Loan Agreement.
AGREEMENT
NOW, THEREFORE, in consideration of the foregoing Recitals and intending to be legally bound, the parties hereto agree as follows:
1LIMITED WAIVER. The Existing Default has occurred as a result of Borrowers’ failure to maintain Adjusted EBITDA as required by Section 6.8(b) of the Loan Agreement of at least fifty percent (50%) of Borrowers’ projected performance for the fiscal quarter ended December 31, 2015, as outlined in Borrowers’ business plan dated June 5, 2015. Subject to the representations and warranties of the Borrowers and the terms and conditions set forth in this Amendment, Bank hereby waives the Existing Default.
2    DEFINED TERMS.  All capitalized terms not defined herein shall have the respective meanings ascribed to such terms in the Loan Agreement. 
3    AMENDMENTS TO LOAN AGREEMENT
3.1    Section 6.8(b) (Performance to Plan).  Section 6.8(b) of the Loan Agreement is hereby amended and restated in its entirety as follows:

(b)    Performance to Plan. As of the last date of each quarter, beginning with the quarter ending March 31, 2016, Borrowers shall maintain Adjusted EBITDA of at least fifty percent (50%) of Borrowers’ projected performance for such quarter as outlined in Borrowers’ business plan dated January 19, 2016.
3.2    Section 13.1 (Definitions).  Each of the following definitions is hereby (a) to the extent already defined in Section 13.1 of the Loan Agreement, amended and restated in its entirety as follows and (b) to the extent not already defined in Section 13.1 of the Loan Agreement, added to Section 13.1 of the Loan Agreement in its appropriate alphabetical order as follows:
“Fee Letter” is that certain letter agreement dated as of March 10, 2016, between the Borrowers and Bank.
“Prime Rate Margin” is the spread set forth below applicable to each Borrower as determined by Borrowers’ Net Cash:
	
			
	Net Cash
	North American Borrowers Loan Margin
	German Borrower Loan Margin

	Greater than $500,000.00
	150 basis points
	250 basis points

	Less than or equal to $500,000.00
	175 basis points
	275 basis points

“Revolving Line Maturity Date” is August 27, 2016.
3.3    Schedule A (List of Eligible Foreign Accounts). Schedule A to the Loan Agreement is hereby deleted in its entirety and replaced with Schedule A hereto.
4    LIMITATION.  The limited waiver and amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a forbearance, waiver or modification of any other term or condition of the loan agreement, the consent and waiver or of any other instrument or agreement referred to therein or to prejudice any right or remedy which Bank may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein other than with respect to the Existing Default; (b) to be a consent to any future amendment or modification, forbearance or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof; or (c) to limit or impair Bank’s right to demand strict performance of all terms and covenants as of any date.  Except as expressly amended hereby, the Loan Agreement and the limited waiver shall continue in full force and effect.  
5    REPRESENTATIONS AND WARRANTIES.  To induce Bank to enter into this Amendment, each Borrower hereby represents and warrants to Bank as follows:
5.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true, accurate and complete in all material respects as of such date), and (b) no Event of Default has occurred and is continuing;
5.2    The Borrowers have the power and authority to execute and deliver this Amendment and to perform their obligations under the Loan Agreement, as amended by this Amendment;
5.3    The organizational documents of the Borrowers delivered to Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

2

5.4    The execution and delivery by the Borrowers of this Amendment and the performance by the Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 
5.5    The execution and delivery by the Borrowers of this Amendment and the performance by the Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting any Borrower, (b) any contractual restriction with a Person binding on any Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on any Borrower, or (d) the organizational documents of any Borrower; 
5.6    The execution and delivery by the Borrowers of this Amendment and the performance by the Borrowers of their obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on the Borrowers, except as already has been obtained or made or except for any filing, recording, or registration required by the Securities Exchange Act of 1934; and
5.7    This Amendment has been duly executed and delivered by the Borrowers and is the binding obligation of each Borrower, enforceable against each Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.  
6    EFFECTIVENESS.  
6.1    Conditions to Effectiveness. This Amendment shall become effective upon the satisfaction of the following conditions precedent in this Section 6.1 (the “Fourth Amendment Effective Date”):
(a)    Amendment.  The Borrowers shall have duly executed and delivered this Amendment to Bank; and
(b)    Payment of Bank Expenses.  The Borrowers shall have paid all Bank Expenses (including all reasonable attorneys’ fees and reasonable expenses) incurred through the date of this Amendment.  
6.2    Post-Effectiveness Conditions. Unless otherwise provided in a writing executed by Bank, Bank shall have received no later than March 10, 2016 (“Fourth Amendment Fee Date”):
(a)    Fee Letter. The Borrowers and Bank shall have duly executed and delivered the Fee Letter to Bank; and
(b)    Payment of Amendment Fee.  The Borrowers shall have paid a fully, earned, non-refundable amendment fee as described in the Fee Letter on the Fourth Amendment Fee Date; provided that German Borrower shall only be obligated to pay Bank such fee (jointly and severally with the North American Borrowers) to the extent such payment does not infringe on Section 30 of the German Act on Limited Liability Companies (GmbHG).
7    COUNTERPARTS.  This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument.  All counterparts shall be deemed an original of this amendment.  
8    LOAN DOCUMENT.  This Amendment is a Loan Document.

3

9    INTEGRATION.  This Amendment and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by Bank with respect to the Borrowers shall remain in full force and effect.  
10    GOVERNING LAW; VENUE.  THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA.  Each Borrower and Bank each submit to the exclusive jurisdiction of the state and federal courts in Santa Clara County, California
11    RATIFICATION. EFFECTIVE.  As of the Effective Date, each Borrower and each Guarantor hereby restates, ratifies and reaffirms each and every term and condition set forth in the Loan Agreement and the other Loan Documents to which it is a party, in each case, as amended hereby.
12    REAFFIRMATION. Each of the undersigned Guarantors consent to the amendments to the Loan Agreement.  Although the undersigned Guarantors have been informed of the matters set forth herein with respect to the Loan Agreement and have consented to the same, each Guarantor understands that Bank has no obligation to inform it of such matters in the future or seek its acknowledgement or agreement to future consents or amendments of the Loan Agreement and nothing herein shall create such a duty.

4

SIGNATURE PAGE TO  
AMENDMENT NO. 4 AND LIMITED WAIVER TO 
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT 

IN WITNESS WHEREOF, the undersigned has caused this Amendment to be duly executed and delivered as of the date first above written.
BORROWERS:

OVERLAND STORAGE, INC., 
a California corporation 
 
 
By:    /s/ Kurt Kalbfleisch    
Name: Kurt Kalbfleisch    
 
    Title:    Chief Financial Officer    

TANDBERG DATA GMBH, 
a limited liability company organized under the laws of Germany 
 
 
By:    /s/ Kurt Kalbfleisch    
Name: Kurt Kalbfleisch     
    Title:   Geschaftsfuhrer    

SPHERE 3D CORP., 
an Ontario corporation 
 
 
By:    /s/ Kurt Kalbfleisch    
Name: Kurt Kalbfleisch     
    Title:    Chief Financial Officer    

GUARANTORS:

TANDBERG DATA HOLDINGS S.À R.L., a private limited liability company (société à responsabilité limitée) incorporated under the laws of the Grand Duchy of Luxembourg    
 
 
By:    /s/ Kurt Kalbfleisch    
Name: Kurt Kalbfleisch     
    Title:   Director    

5

 
 
By:        
Name:     
    Title:        

6

SPHERE 3D INC., 
a corporation organized under the laws of Canada 
 
 
By:    /s/ Kurt Kalbfleisch    
Name: Kurt Kalbfleisch     
    Title:    Chief Financial Officer
V3 SYSTEMS HOLDINGS, INC., 
a Delaware corporation  
 
 
By:    /s/ Kurt Kalbfleisch    
Name: Kurt Kalbfleisch     
    Title:    Chief Financial Officer
    

7

SILICON VALLEY BANK
 
By:    /s/ Justin Mauch    
Name:    Justin Mauch    Title:    Vice President

8

SCHEDULE A
List of Eligible Foreign Accounts
With respect to North American Borrowers
		
	1.
	ADN Distribution GmbH ($200,000 credit limit)

		
	2.
	ArrowECS

		
	3.
	Avnet

		
	4.
	BE-IP France

		
	5.
	Bull SA Establissement D’Angers

		
	6.
	Bull SA Global Logistics

		
	7.
	CMS Peripherals LTD

		
	8.
	Datastore AG

		
	9.
	Dell Global Business Center SDN BHD

		
	10.
	Dell Global BV

		
	11.
	Dell Xiamen Co Ltd

		
	12.
	Drive Control Corporation

		
	13.
	Eld Datentechnik GmbH

		
	14.
	Fujitsu

		
	15.
	Hammer PLC

		
	16.
	HP

		
	17.
	Infodip

		
	18.
	Ingram Micro, S.L. Spain

		
	19.
	Memodis

		
	20.
	RR Donnelley Europe SP Zoo

		
	21.
	Stordata

		
	22.
	Systex Corporation

		
	23.
	Tech Data

		
	24.
	TimAG

		
	25.
	Westcon Group

		
	26.
	Zycko UK ($200,000 credit limit)

With respect to German Borrower
		
	1.
	Ingram Micro, Dornach

		
	2.
	Imation Corporation, Saint Pau

		
	3.
	Ingram Micro- US & Canada, Mis

		
	4.
	Tech Data Corporation, Clearwa

		
	5.
	Tech Data Service GmbH, Wien

		
	6.
	Tech Data FRANCE SAS, Bussy St

		
	7.
	Hewlett Packard, Meyrin/geneva

		
	8.
	ALSO Deutschland GmbH, Soest

9

		
	9.
	Northamber plc, Surrey KT9 1HS

		
	10.
	Tarox AG, Lünen

		
	11.
	api Computerhandels GmbH, Aach

		
	12.
	Micro P Ltd., Altham,Accringto

		
	13.
	C/O Central Accounts Payable, European Trade Center

		
	14.
	eld datentechnik GmbH, Fellbac

		
	15.
	NEC Corporation of America, Sa

		
	16.
	Pram Consulting Inc., Bradento

		
	17.
	Hewlett-Packard, Singapore

		
	18.
	Hammer PLC, Basingstoke/Hampsh

		
	19.
	Products Distribution Limited

		
	20.
	Gemm Informatica S.r.l., Calde

		
	21.
	EET Europarts AS, Oslo

		
	22.
	Computer Gross Italia S.P.A.,

		
	23.
	Synnex Canada Limited, M9W 5Z9

		
	24.
	BackupWorks.com.INC, Lake Fore

		
	25.
	Alltron AG, Mägenwil

		
	26.
	Fujitsu Technology Solutions,

		
	27.
	Bluechip Computer AG, Meuselwi

		
	28.
	M C S S.A.S, Strambino To

		
	29.
	Starline Computer GmbH, Kirchh

		
	30.
	Active Solution &, San Donat

		
	31.
	CiS Electronica Industria e, 0

		
	32.
	Synnex Corporation, Fremont, C

		
	33.
	Axel s.r.l., Scarmagno (To)

		
	34.
	CDW LLC, Vernon Hills, Il

		
	35.
	Vitera Healthcare, Tampa, FL

		
	36.
	ABC Data S.A., Warszawa

		
	37.
	Hewlett-Packard Company, 00605

		
	38.
	STORESYS Vertriebsges. für, Ha

		
	39.
	IBM Corporation, Endicott, NY

		
	40.
	Dexxon-Digital Storage Inc., L

		
	41.
	ARROW ECS Nederland, HZ Emmen

		
	42.
	Alias srl, Udine

		
	43.
	Wortmann AG, Hüllhorst

		
	44.
	Arrow Central Europe GmbH, Neu

		
	45.
	Littlebit Technology AG, Hünen

		
	46.
	Dakel Informatica, S.A., Cerda

		
	47.
	DOT.NET Ltd., Agualva-Cacem

		
	48.
	SweDeltaco AB, Tullinge

		
	49.
	div. Kunden Service, xxxx

10

		
	50.
	PCE Paragon Solutions Ltd., Ko

		
	51.
	Eksaip Srl, Vicenza

		
	52.
	Products Distribution Limited

		
	53.
	EET Group A/S, Birkerod

		
	54.
	Veracomp S.A., Kraków

		
	55.
	Synerway SAS, Nanterre

		
	56.
	SM Data S.A., Montcada i Reixe

		
	57.
	Products Distribution Limited

		
	58.
	Alliance Software SAS, Niort C

		
	59.
	Alstor T.Szukala, Warszawa

		
	60.
	Maxtec Peripherals Pty Ltd., B

		
	61.
	Fujitsu Technology Solutions,

		
	62.
	PCM Sales, Inc., El Segundo, C

		
	63.
	Seneca Data Distributors, Inc.

		
	64.
	div. Leih ENGLAND, xxxx

		
	65.
	Tech Data Service GmbH, Wien

		
	66.
	Lasting System S.R.L., Timisoa

		
	67.
	SWS A.S., Slusovice

		
	68.
	Action S.A., Warszawa

		
	69.
	Zelinka d.o.o., Ljubljana

		
	70.
	IBM Corporation, Carlisle

		
	71.
	Avnet Technology Solutions, Ri

		
	72.
	TV Tools Oy, Helsinki

		
	73.
	IBM Corporation, Camp Hill

		
	74.
	Dansk Computer Center A/S, Hin

		
	75.
	div. Kunden Norwegen, xxxx

		
	76.
	SIA ATEA, Riga

		
	77.
	ETM professional control GmbH

		
	78.
	IT Distribution GmbH, Büren

		
	79.
	Performance Technologies S.A.

		
	80.
	Asbisc Enterprises PLC., Lemes

		
	81.
	M.G.T. Educational SRL, Bukare

		
	82.
	div. Kd.Frankreich o.VAT, xxxx

		
	83.
	IBM PDL Singapore Branch, Sing

		
	84.
	Viglen Limited, Herfordshire A

		
	85.
	IT Option ApS, Farum

		
	86.
	MSB Mikrocomputer Software, Wi

		
	87.
	Olprint Sp. z o.o., Wroclaw

		
	88.
	Platech Brasil Suprimentos, 23

		
	89.
	Open G I Limited, Warndon, Wor

		
	90.
	Sistemi Gestionali S.r.l., Via

11

		
	91.
	div. Kunden USA, xxxx

		
	92.
	Converge- Societa per Azioni,

		
	93.
	Tcplus (Switzerland) GmbH, Gla

		
	94.
	Hewlett-Packard International

		
	95.
	Datastor TM, Longmont, CO 8050

		
	96.
	Soubabere informatique S.A., C

		
	97.
	Vali Computers Ltd., Veliko Ta

		
	98.
	Utilize PLC, Essex RM3 8XB

		
	99.
	Toshiba Electronics Europe, Dü

		
	100.
	Media Storage Systems AB, Häge

		
	101.
	div. Kunden, xxxx

		
	102.
	Finstor Oy, Espoo

		
	103.
	Xpert-IT bvba, Nijlen

		
	104.
	Jack Wills Ltd., London NW10 6

		
	105.
	EXTRA Computer GmbH, Giengen-S

		
	106.
	Network Innovation NI AB, Nack

		
	107.
	Promark Technology,Inc., Annap

		
	108.
	Hewlett-Packard Company, CA 90

		
	109.
	Netconnect S.A., Ilioupolis-At

		
	110.
	SDP N.V., Sint-Niklaas

12Exhibit

EXHIBIT 10.3
Representative’s Warrant Agreement
 
THE REGISTERED HOLDER OF THIS PURCHASE WARRANT BY ITS ACCEPTANCE HEREOF, AGREES THAT IT WILL NOT SELL, TRANSFER OR ASSIGN THIS PURCHASE WARRANT EXCEPT AS HEREIN PROVIDED AND THE REGISTERED HOLDER OF THIS PURCHASE WARRANT AGREES THAT IT WILL NOT SELL, TRANSFER, ASSIGN, PLEDGE OR HYPOTHECATE THIS PURCHASE WARRANT FOR A PERIOD OF ONE HUNDRED EIGHTY DAYS FOLLOWING THE EFFECTIVE DATE (DEFINED BELOW) TO ANYONE OTHER THAN (I) LADENBURG THALMANN & CO. INC. OR AN UNDERWRITER OR A SELECTED DEALER PARTICIPATING IN THE OFFERING, OR (II) A BONA FIDE OFFICER OR PARTNER OF LADENBURG THALMANN & CO. INC. OR OF ANY SUCH UNDERWRITER OR SELECTED DEALER.
 
THIS PURCHASE WARRANT IS NOT EXERCISABLE PRIOR TO MAY 28, 2016. VOID AFTER 5:00 P.M., EASTERN TIME, NOVEMBER 30, 2018.
 
COMMON SHARE PURCHASE WARRANT
 
For the Purchase of 88,463 Common Shares of

SPHERE 3D CORP.
 
1.          Purchase Warrant.  THIS CERTIFIES THAT, in consideration of funds duly paid by or on behalf of Ladenburg Thalmann & Co. Inc. (“Holder”), as registered owner of this Purchase Warrant, to Sphere 3D Corp., a corporation existing under the laws of the province of Ontario, Canada (the “Company”), Holder is entitled, at any time or from time to time from May 28, 2016 (the “Commencement Date”), and until at or before 5:00 p.m., Eastern time, November 30, 2018 (the ”Expiration Date”), but not thereafter, to subscribe for, purchase and receive, in whole or in part, up to 88,463 common shares of the Company, no par value per share (the “Shares”), subject to adjustment as provided in Section 6 hereof. If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Warrant may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. During the period commencing on the Effective Date and ending on the Expiration Date, the Company agrees not to take any action that would terminate this Purchase Warrant. This Purchase Warrant is initially exercisable at $2.06 per Share; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Warrant, including the exercise price per Share and the number of Shares to be received upon such exercise, shall be adjusted as therein specified. The term “Exercise Price” shall mean the initial exercise price or the adjusted exercise price, depending on the context. The term “Effective Date” shall mean November 30, 2015, the date of those certain subscription and purchase agreements, by and between the Company and certain investors party thereto (the “Subscription Agreements”).
 
	
			
	 
	2.
	Exercise.

 
2.1           Exercise Form.  In order to exercise this Purchase Warrant, the exercise form attached hereto must be duly executed and completed and delivered to the Company, together with this Purchase Warrant and payment of the Exercise Price for the Shares being purchased payable in cash by wire transfer of immediately available funds to an account designated by the Company or by certified check or official bank check, unless Holder elects to receive Shares pursuant to the cashless exercise provisions of Section 2.2 below. If the subscription rights represented hereby shall not be exercised at or before 5:00 p.m., Eastern time, on the Expiration Date, this Purchase Warrant shall become and be void without further force or effect, and all rights represented hereby shall cease and expire.
 

2.2           Cashless Exercise.  Holder may elect to receive the number of Shares equal to the value of this Purchase Warrant (or the portion thereof being exercised), by surrender of this Purchase Warrant to the Company, together with the exercise form attached hereto, in which event the Company shall issue to Holder Shares in accordance with the following formula:
 
	
				
	 
	 
	Y(A-B)
	 

	X
	=
	A
	 

 
	
				
	Where,
	 
	 
	 

	 
	X
	=
	The number of Shares to be issued to Holder;

	 
	Y
	=
	The number of Shares for which the Purchase Warrant is being exercised;

	 
	A
	=
	The fair market value of one Share; and

	 
	B
	=
	The Exercise Price.

 
For purposes of this Section 2.2, the fair market value of a Share is defined as follows:
 
	
			
	 
	(i)
	if the Company’s common share is traded on a securities exchange, the value shall be deemed to be the closing price on such exchange on the trading day prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant; or

 
	
			
	 
	(ii)
	if the Company’s common share is actively traded over-the-counter, the value shall be deemed to be the closing bid price on the trading day prior to the exercise form being submitted in connection with the exercise of the Purchase Warrant; or

 
	
			
	 
	(iii)
	if there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Company’s Board of Directors.

 
2.3       Delivery of Shares.  Upon exercise, the applicable number of Shares shall be delivered to the Holder within three (3) business days of the Company’s receipt of the exercise form completed and payment of the applicable Exercise Price, if paid in cash.    

2.4    Legend.  Each certificate representing the Shares shall bear a legend as follows unless such securities have been registered under the Securities Act of 1933, as amended (the “Securities Act”), in addition to any other legend that may be required under applicable securities laws:
 
“The securities represented by this certificate have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state law. Neither the securities nor any interest therein may be offered for sale, sold or otherwise transferred except pursuant to an effective registration statement under the Securities Act, or pursuant to an exemption from registration under the Securities Act and applicable state law which, in the opinion of counsel to the Company, is available.”
 
	
			
	 
	3.
	Transfer.

 
3.1           General Restrictions.  The Holder of this Purchase Warrant agrees by his, her or its acceptance hereof, that such Holder will not: (a) sell, transfer, assign, pledge or hypothecate this Purchase Warrant for a period of one hundred eighty (180) days following the Effective Date to anyone other than: (i) Ladenburg Thalmann & Co. Inc. (“Ladenburg”) or an underwriter or a selected dealer participating in the offering contemplated by the Subscription Agreements (the “Offering”), or (ii) a bona fide officer or partner of Ladenburg or of any such underwriter or selected 

dealer ((i) and (ii) collectively, “Permitted Transferees”), provided that, in each case (i) or (ii), such transfer shall be in accordance with FINRA Rules 5110(g)(1) and 5110(g)(2)(A)(ii), or (b) cause this Purchase Warrant or the securities issuable hereunder to be the subject of any hedging, short sale, derivative, put or call transaction that would result in the effective economic disposition of this Purchase Warrant or the securities hereunder, except as provided for in FINRA Rule 5110(g)(2). On and after 180 days after the Effective Date, transfers of this Purchase Warrant to others may be made subject to compliance with or exemptions from applicable securities laws. In order to make any permitted assignment hereof, the Holder must deliver to the Company the assignment form attached hereto duly executed and completed, together with the Purchase Warrant and payment of all transfer taxes, if any, payable in connection therewith. The Company shall within three (3) business days transfer this Purchase Warrant on the books of the Company and shall execute and deliver a new Purchase Warrant or Purchase Warrants of like tenor to the appropriate assignee(s) expressly evidencing the right to purchase the aggregate number of Shares purchasable hereunder or such portion of such number as shall be contemplated by any such assignment.
 
3.2           Restrictions Imposed by the Securities Act.  The securities evidenced by this Purchase Warrant, shall not be transferred unless and until: (i) the Company has received the opinion of counsel for the Holder that the securities may be transferred pursuant to an exemption from registration under the Securities Act and applicable state securities laws, the availability of which is established to the reasonable satisfaction of the Company (the Company hereby agreeing that the opinion of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. in a form reasonably acceptable to counsel to the Company shall be deemed satisfactory evidence of the availability of an exemption), or (ii) a registration statement relating to the offer and sale of the Shares has been filed by the Company and declared effective by the U.S. Securities and Exchange Commission (the “Commission”) and compliance with applicable state securities law has been established.
 
	
			
	 
	4.
	“Piggy-Back” Registration.

  
4.1           Grant of Right.  The Holder shall have the right, for a period beginning on the Effective Date and ending three years following the Effective Date to include all or any portion of the Shares underlying the Purchase Warrants (collectively, the “Registrable Securities”) as part of any other registration of securities filed by the Company (other than in connection with a transaction of the type contemplated by Rule 145(a) promulgated under the Securities Act or pursuant to Form S-8, F‐4 or S-4 or any equivalent form); provided, however, that if, in connection with any primary underwritten public offering for the account of the Company, the managing underwriter(s) thereof shall, in its reasonable discretion, impose a limitation on the number of Shares which may be included in the Registration Statement because, in such underwriter(s)’ judgment, marketing or other factors dictate such limitation is necessary to facilitate public distribution, then the Company shall be obligated to include in such Registration Statement only such limited portion of the Registrable Securities with respect to which the Holder requested inclusion hereunder as the underwriter shall reasonably permit. Any exclusion of Registrable Securities shall be made pro rata among the Holders seeking to include Registrable Securities in proportion to the number of Registrable Securities sought to be included by such Holders.  
 
4.2          Terms.  The Company shall bear all fees and expenses attendant to registering the Registrable Securities pursuant to Section 4.1 hereof, but the Holders shall pay any and all underwriting commissions and the expenses of any legal counsel selected by the Holders to represent them in connection with the sale of the Registrable Securities. In the event of such a proposed registration, the Company shall furnish the then Holders of outstanding Registrable Securities with not less than ten (10) days written notice prior to the proposed date of filing of such registration statement. Such notice to the Holders shall continue to be given for each registration statement filed by the Company until the earlier of such time as all of the Registrable Securities have been (i) sold by the Holder or (ii) registered under a Registration Statement. The holders of the Registrable Securities shall exercise the “piggy-back” rights provided for herein by giving written notice within seven (7) days of the receipt of the Company’s notice of its intention to file a registration statement. Except as otherwise provided in this Purchase Warrant, such registration rights shall terminate on the third anniversary of the Effective Date. Notwithstanding anything contained in this Purchase Warrant to the contrary, the Company shall have no obligation pursuant to Section 4 hereof to register the Registrable Securities held by a Holder, other than the initial Holder of this Purchase Warrant or any of its Permitted Transferees, where such Holder would then be entitled to sell this Purchase Warrant and the Shares under Rule 144 promulgated under the 

Securities Act (or a successor rule thereto) without restriction (including, without limitation, volume restrictions) and without the need for current public information. 
 
4.3           General Terms.
 
4.3.1           Indemnification.  The Company shall indemnify the Holder(s) of the Registrable Securities to be sold pursuant to any registration statement hereunder and each person, if any, who controls such Holders within the meaning of Section 15 of the Securities Act or Section 20 (a) of the Securities Exchange Act of 1934, as amended (“Exchange Act”), against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which any of them may become subject under the Securities Act, the Exchange Act or otherwise, arising from such registration statement but only to the same extent and with the same effect as the provisions pursuant to which the Company has agreed to indemnify the purchasers of common shares and warrants in the Offering pursuant to the Subscription Agreements. The Holder(s) of the Registrable Securities to be sold pursuant to such registration statement, and their successors and assigns, shall severally, and not jointly, indemnify the Company against all loss, claim, damage, expense or liability (including all reasonable attorneys’ fees and other expenses reasonably incurred in investigating, preparing or defending against any claim whatsoever) to which they may become subject under the Securities Act, the Exchange Act or otherwise, arising from information furnished by or on behalf of such Holders, or their successors or assigns, in writing, for specific inclusion in such registration statement to the same extent and with the same effect as the provisions contained in the Subscription Agreements pursuant to which purchasers of common shares and warrants in the Offering have thereby agreed to indemnify the Company and such persons.
 
4.3.2           Exercise of Purchase Warrants.  Nothing contained in this Purchase Warrant shall be construed as requiring the Holder(s) to exercise their Purchase Warrants prior to or after the initial filing of any registration statement or the effectiveness thereof.
 
4.3.3           Documents Delivered.  The Company shall furnish to each underwriter of any such offering, if any, a signed counterpart, addressed to underwriter, of: (i) an opinion of counsel to the Company, dated the effective date of such registration statement (and, if such registration includes an underwritten public offering, an opinion dated the date of the closing under any underwriting agreement related thereto), and (ii) a “cold comfort” letter dated the effective date of such registration statement (and, if such registration statement includes an underwritten public offering, a letter dated the date of the closing under the underwriting agreement) signed by the independent registered public accounting firm which has issued a report on the Company’s financial statements included in such registration statement, in each case covering substantially the same matters with respect to such registration statement (and the prospectus included therein) and, in the case of such accountants’ letter, with respect to events subsequent to the date of such financial statements, as are customarily covered in opinions of issuer’s counsel and in accountants’ letters delivered to underwriters in underwritten public offerings of securities. The Company shall also deliver promptly, if requested, to the managing underwriter, if any, copies of all correspondence between the Commission and the Company, and all memoranda relating to discussions with the Commission or its staff with respect to the registration statement and permit each underwriter to do such investigation, upon reasonable advance notice, with respect to information contained in or omitted from the registration statement as it deems reasonably necessary to comply with applicable securities laws or rules of FINRA.
 
4.3.4           Underwriting Agreement.  The Company shall enter into an underwriting agreement with the managing underwriter(s), if any, selected by the Company, and if the underwriting agreement is solely for the Holders, the managing underwriter shall be reasonably satisfactory to any Holders whose Registrable Securities are being registered pursuant to this Section 4. Such agreement shall be reasonably satisfactory in form and substance to the Company, such managing underwriters, and if the underwriting agreement is solely for the Holders, the Holders, and shall contain such representations, warranties and covenants by the Company and such other terms as are customarily contained in agreements of that type used by the managing underwriter.  Such Holders shall not be required to make any representations or warranties to or agreements with the Company or the underwriters except as they may relate to such Holders their Shares and their intended methods of distribution or are otherwise customary for Holders.
 

4.3.5           Documents to be Delivered by Holder(s).  No Holder shall have the right to participate in any of the foregoing offerings unless such Holder(s) has in shall furnish to the Company a completed and executed questionnaire provided by the Company to the Holder(s), at least seven (7) days in advance, requesting information customarily sought of selling security holders.
 
4.3.6           Damages.  Should the registration statement or the effectiveness thereof required by Sections 4.1 hereof be delayed by the Company or the Company otherwise fails to comply with such provisions, the Holder(s) shall, in addition to any other legal or other relief available to the Holder(s), be entitled to obtain specific performance or other equitable (including injunctive) relief against the threatened breach of such provisions or the continuation of any such breach, without the necessity of proving actual damages and without the necessity of posting bond or other security.

5.           New Purchase Warrants to be Issued.
 
5.1           Partial Exercise or Transfer.  Subject to the restrictions in Section 3 hereof, this Purchase Warrant may be exercised or assigned in whole or in part. In the event of the exercise or assignment hereof in part only, upon surrender of this Purchase Warrant for cancellation, together with the duly executed exercise or assignment form and funds sufficient to pay the Exercise Price and/or transfer tax if exercised pursuant to Section 2.1 hereto, the Company shall cause to be delivered to the Holder without charge a new Purchase Warrant of like tenor to this Purchase Warrant in the name of the Holder evidencing the right of the Holder to purchase the number of Shares purchasable hereunder as to which this Purchase Warrant has not been exercised or assigned.
 
5.2           Lost Certificate.  Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation of this Purchase Warrant and of reasonably satisfactory indemnification or the posting of a bond, the Company shall execute and deliver a new Purchase Warrant of like tenor and date. Any such new Purchase Warrant executed and delivered as a result of such loss, theft, mutilation or destruction shall constitute a substitute contractual obligation on the part of the Company.
 
6.           Adjustments.
 
6.1           Adjustments to Exercise Price and Number of Securities.  The Exercise Price and the number of Shares underlying the Purchase Warrant shall be subject to adjustment from time to time as hereinafter set forth:
 
6.1.1          Share Dividends; Split Ups.  If, after the date hereof, and subject to the provisions of Section 6.1.3 below, the number of outstanding common shares of the Company is increased by a dividend payable in common shares or by a split up of common shares or other similar event, then, on the effective day thereof, the number of Shares purchasable hereunder shall be increased in proportion to such increase in outstanding common shares, and the Exercise Price shall be proportionately decreased.
 
6.1.2           Aggregation of Shares.  If, after the date hereof, and subject to the provisions of Section 6.1.3 below, the number of outstanding common shares of the Company is decreased by a consolidation, combination or reclassification of Shares or other similar event, then, on the effective date thereof, the number of Shares purchasable hereunder shall be decreased in proportion to such decrease in outstanding common shares of the Company, and the Exercise Price shall be proportionately increased.
 
6.1.3           Replacement of Securities upon Reorganization, etc.  In case of any reclassification or reorganization of the outstanding common shares of the Company other than a change covered by Section 6.1.1 or 6.1.2 hereof or that solely affects the par value of such Shares, or in the case of any share reconstruction or amalgamation or consolidation (or similar transaction) of the Company with or into another corporation (other than a consolidation or share reconstruction or amalgamation (or similar transaction) in which the Company is the continuing corporation and that does not result in any reclassification or reorganization of the outstanding common shares of the Company), or in the case of any sale or conveyance to another corporation or entity of the property of the Company as an entirety or substantially as an entirety in connection with which the Company is dissolved, the Holder of this Purchase Warrant shall have the right thereafter (until the expiration of the right of exercise of this Purchase Warrant) 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 or other securities or property (including cash) receivable upon such reclassification, reorganization, share reconstruction or amalgamation, or consolidation, (or similar transaction), or upon a dissolution following any such sale or transfer, by a Holder of the number of Shares of the Company obtainable upon exercise of this Purchase Warrant immediately prior to such event; and if any reclassification also results in a change in Shares covered by Section 6.1.1 or 6.1.2, then such adjustment shall be made pursuant to Sections 6.1.1, 6.1.2 and this Section 6.1.3. The provisions of this Section 6.1.3 shall similarly apply to successive reclassifications, reorganizations, share reconstructions or amalgamations, or consolidations (or similar transaction), sales or other transfers.
 
6.1.4           Changes in Form of Purchase Warrant.  This form of Purchase Warrant need not be changed because of any change pursuant to this Section 6.1, and any Purchase Warrants issued after such change may state the same Exercise Price and the same number of Shares as are stated in the Purchase Warrants initially issued. The acceptance by any Holder of the issuance of new Purchase Warrants reflecting a required or permissive change shall not be deemed to waive any rights to an adjustment occurring after the Commencement Date or the computation thereof.
 
6.2           Substitute Purchase Warrant.  In case of any consolidation of the Company with, or share reconstruction or amalgamation (or similar transaction) of the Company with or into, another corporation (other than a consolidation or share reconstruction or amalgamation (or similar transaction) which does not result in any reclassification or change of the outstanding common shares of the Company), the corporation formed by such consolidation or share reconstruction or amalgamation (or similar transaction) shall execute and deliver to the Holder a supplemental Purchase Warrant providing that the holder of each Purchase Warrant then outstanding or to be outstanding shall have the right thereafter (until the stated expiration of such Purchase Warrant) to receive, upon exercise of such Purchase Warrant, the kind and amount of shares and other securities and property receivable upon such consolidation or share reconstruction or amalgamation (or similar transaction), by a holder of the number of Shares of the Company for which such Purchase Warrant might have been exercised immediately prior to such consolidation, share reconstruction or amalgamation (or similar transaction), sale or transfer. Such supplemental Purchase Warrant shall provide for adjustments which shall be identical to the adjustments provided for in this Section 6. The above provision of this Section shall similarly apply to successive consolidations or share reconstructions or amalgamations (or similar transaction).
 
6.3           Elimination of Fractional Interests.  The Company shall not be required to issue certificates representing fractions of Shares upon the exercise of the Purchase Warrant, nor shall it be required to issue scrip or pay cash in lieu of any fractional interests, it being the intent of the parties that all fractional interests shall be eliminated by rounding any fraction up or down, as the case may be, to the nearest whole number of Shares or other securities, properties or rights.
 
7.           Reservation and Listing.  The Company shall at all times, if applicable, reserve and keep available out of its authorized common shares, solely for the purpose of issuance upon exercise of the Purchase Warrants, such number of Shares or other securities, properties or rights as shall be issuable upon the exercise thereof. The Company covenants and agrees that, upon exercise of the Purchase Warrants and payment of the Exercise Price therefor (or upon cashless exercise, as the case may be), in accordance with the terms hereby, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. The Company further covenants and agrees that upon exercise of the Purchase Warrants and payment of the exercise price therefor, all Shares and other securities issuable upon such exercise shall be duly and validly issued, fully paid and non-assessable and not subject to preemptive rights of any shareholder. As long as the Purchase Warrants shall be outstanding, the Company shall use its commercially reasonable efforts to cause all Shares issuable upon exercise of the Purchase Warrants to be listed on The NASDAQ Global Market or any successor trading market (or, if applicable, on all national securities exchanges on which the Shares issued to the public in the Offering may then be quoted and/or listed).
 

8.          Certain Notice Requirements.
 
8.1          Holder’s Right to Receive Notice.  Nothing herein shall be construed as conferring upon the Holders the right to vote or consent or to receive notice as a shareholder for the election of directors or any other matter, or as having any rights whatsoever as a shareholder of the Company. If, however, at any time prior to the expiration of the Purchase Warrants and their exercise, any of the events described in Section 8.2 shall occur, then, in one or more of said events, the Company shall give written notice of such event at least five (5) business days prior to the date fixed as a record date or the date of closing the transfer books for the determination of the shareholders entitled to such dividend, distribution, conversion or exchange of securities or subscription rights, or entitled to vote on such proposed dissolution, liquidation, winding up or sale. Such notice shall specify such record date or the date of the closing of the transfer books, as the case may be. Notwithstanding the foregoing, the Company shall deliver to each Holder a copy of each notice given to the other shareholders of the Company at the same time and in the same manner that such notice is given to the shareholders.
 
8.2           Events Requiring Notice.  The Company shall be required to give the notice described in this Section 8 upon one or more of the following events: (i) if the Company shall take a record of the holders of its common shares for the purpose of entitling them to receive a dividend or distribution payable otherwise than in cash, or a cash dividend or distribution payable otherwise than out of retained earnings, as indicated by the accounting treatment of such dividend or distribution on the books of the Company, (ii) the Company shall offer to all the holders of its common shares any additional shares in the capital of the Company or securities convertible into or exchangeable for shares  in the capital of the Company, or any option, right or warrant to subscribe therefor, or (iii) a dissolution, liquidation or winding up of the Company (other than in connection with a consolidation or share reconstruction or amalgamation (or similar transaction) or a sale of all or substantially all of its property, assets and business shall be proposed.
 
8.3           Notice of Change in Exercise Price.  The Company shall, promptly after an event requiring a change in the Exercise Price pursuant to Section 6 hereof, send notice to the Holders of such event and change (“Price Notice”). The Price Notice shall describe the event causing the change and the method of calculating same and shall be certified as being true and accurate by the Company’s Chief Executive Officer.
 
8.4           Transmittal of Notices.  All notices, requests, consents and other communications under this Purchase Warrant shall be in writing and shall be deemed to have been duly made when hand delivered, or mailed by express mail or private courier service: (i) if to the registered Holder of the Purchase Warrant, to the address of such Holder as shown on the books of the Company, or (ii) if to the Company, to the following address or to such other address as the Company may designate by notice to the Holders:
 
If to the Holder:
 
Ladenburg Thalman & Co. Inc.
570 Lexington Avenue, 12th Floor
New York, NY 10022
Attention: Managing Director
Fax No.: (305) 572-4199
 
 
In each case with a copy (which shall not constitute notice) to:
 
Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
Chrysler Center
666 Third Avenue
New York, New York 10017
Attention: Ivan K. Blumenthal, Esq.
Fax No: (212) 983-3115
 

If to the Company:
 
Sphere 3D Corp.  
9112 Spectrum Center Boulevard  
San Diego, California 92123  
Attention: Chief Executive Officer
Fax No: (858) 495-4267
 
with a copy (which shall not constitute notice) to:
 
O’Melveny & Myers LLP 
2765 Sand Hill Road 
Menlo Park, California 94025
Attention: Paul L. Sieben, Esq.
Fax No: (650) 473-2601

9.           Miscellaneous.
 
9.1          Amendments.  The Company and Ladenburg may from time to time supplement or amend this Purchase Warrant without the approval of any of the Holders in order to cure any ambiguity, to correct or supplement any provision contained herein that may be defective or inconsistent with any other provisions herein, or to make any other provisions in regard to matters or questions arising hereunder that the Company and Ladenburg may deem necessary or desirable and that the Company and Ladenburg deem shall not adversely affect the interest of the Holders. All other modifications or amendments shall require the written consent of and be signed by the party against whom enforcement of the modification or amendment is sought.
 
9.2           Headings.  The headings contained herein are for the sole purpose of convenience of reference, and shall not in any way limit or affect the meaning or interpretation of any of the terms or provisions of this Purchase Warrant.
 
9.3.           Entire Agreement.  This Purchase Warrant (together with the other agreements and documents being delivered pursuant to or in connection with this Purchase Warrant) constitutes the entire agreement of the parties hereto with respect to the subject matter hereof, and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter hereof.
 
9.4           Binding Effect.  This Purchase Warrant shall inure solely to the benefit of and shall be binding upon, the Holder and the Company and their permitted assignees, respective successors, legal representative and assigns, and no other person shall have or be construed to have any legal or equitable right, remedy or claim under or in respect of or by virtue of this Purchase Warrant or any provisions herein contained.
 
9.5           Governing Law; Submission to Jurisdiction; Trial by Jury.  This Purchase Warrant shall be governed by and construed and enforced in accordance with the laws of the State of New York, without giving effect to conflict of laws principles thereof. The Company hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Purchase Warrant shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. The choice of the law of the State of New York as the governing law of this Purchase Warrant is a valid choice of law under the laws of Canada and will be honored by courts in Canada; the Company has the power to submit, and has legally, validly, effectively and irrevocably submitted, to the personal jurisdiction of each New York State and United States Federal court sitting in The City of New York and the Company hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum.  Any final judgment for a fixed sum of money rendered by a New York court having jurisdiction under its own domestic laws in respect of any suit, action or proceeding against the Company based upon this Purchase Warrant would be recognized and enforced by courts in Canada and the Province of Ontario, without re-examining the merits of the case. Any process or summons to be served upon the Company may be served by transmitting a copy thereof by registered 

or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 8 hereof. Such mailing shall be deemed personal service and shall be legal and binding upon the Company in any action, proceeding or claim. The Company and the Holder agree that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys’ fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its shareholders and affiliates) and the Holder hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.
 
9.6           Waiver, etc.  The failure of the Company or the Holder to at any time enforce any of the provisions of this Purchase Warrant shall not be deemed or construed to be a waiver of any such provision, nor to in any way affect the validity of this Purchase Warrant or any provision hereof or the right of the Company or any Holder to thereafter enforce each and every provision of this Purchase Warrant. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Purchase Warrant shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.
 
9.7           Execution in Counterparts.  This Purchase Warrant may be executed in one or more counterparts, and by the different parties hereto in separate counterparts, each of which shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement, and shall become effective when one or more counterparts has been signed by each of the parties hereto and delivered to each of the other parties hereto. Such counterparts may be delivered by facsimile transmission or other electronic transmission.
 
9.8           Exchange Agreement.  As a condition of the Holder’s receipt and acceptance of this Purchase Warrant, Holder agrees that, at any time prior to the complete exercise of this Purchase Warrant by Holder, if the Company and Ladenburg enter into an agreement (“Exchange Agreement”) pursuant to which they agree that all outstanding Purchase Warrants will be exchanged for securities or cash or a combination of both, then Holder shall agree to such exchange and become a party to the Exchange Agreement.
 
[Signature Page Follows]
 
 

IN WITNESS WHEREOF, the Company has caused this Purchase Warrant to be signed by its duly authorized officer as of the 15th day of January, 2016.
 
	
			
	SPHERE 3D CORP.
	 

	 
	 
	 

	By:
	 /s/ Kurt Kalbfleisch
	 

	 
	Name: Kurt Kalbfleisch
	 

	 
	Title:   Chief Financial Officer
	 

 
 

[Form to be used to exercise Purchase Warrant]
 
Date: __________, 20___
 
The undersigned hereby elects irrevocably to exercise the Purchase Warrant for ______ common shares, no par value per share (the “Shares”), of Sphere 3D Corp., a corporation existing under the laws of the province of Ontario, Canada (the “Company”), and hereby makes payment of $____ (at the rate of $____ per Share) in payment of the Exercise Price pursuant thereto. Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.
 
or
 
The undersigned hereby elects irrevocably to convert its right to purchase ___ Shares of the Company under the Purchase Warrant for ______ Shares, as determined in accordance with the following formula:
 
	
					
	 
	 
	 
	Y(A-B)
	 

	 
	X
	=
	A
	 

 
	
				
	Where,
	 
	 
	 

	 
	X
	=
	The number of Shares to be issued to Holder;

	 
	Y
	=
	The number of Shares for which the Purchase Warrant is being exercised;

	 
	A
	=
	The fair market value of one Share which is equal to $_____; and

	 
	B
	=
	The Exercise Price which is equal to $______ per share

 
The undersigned agrees and acknowledges that the calculation set forth above is subject to confirmation by the Company and any disagreement with respect to the calculation shall be resolved by the Company in its sole discretion.
 
Please issue the Shares as to which this Purchase Warrant is exercised in accordance with the instructions given below and, if applicable, a new Purchase Warrant representing the number of Shares for which this Purchase Warrant has not been exercised.
 
	
			
	Signature
	 
	 

 
	
			
	Signature Guaranteed
	 
	 

 
	
	
	 

	 

 

INSTRUCTIONS FOR REGISTRATION OF SECURITIES
 
	
			
	Name:
	 
	 

	 
	(Print in Block Letters)
	 

 
	
			
	Address:
	 
	 

	 
	 
	 

	 
	 
	 

 
NOTICE: The signature to this form must correspond with the name as written upon the face of the Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.
 
 
[Form to be used to assign Purchase Warrant]
 
ASSIGNMENT
 
(To be executed by the registered Holder to effect a transfer of the within Purchase Warrant):
 
FOR VALUE RECEIVED, __________________ does hereby sell, assign and transfer unto the right to purchase common shares, no par value per share, of Sphere 3D Corp., a corporation existing under the laws of the province of Ontario, Canada (the “Company”), evidenced by the Purchase Warrant and does hereby authorize the Company to transfer such right on the books of the Company.
 
	
		
	Dated: __________, 20__
	 

 
	
			
	Signature
	 
	 

 
	
			
	Signature Guaranteed
	 
	 

 
NOTICE: The signature to this form must correspond with the name as written upon the face of the within Purchase Warrant without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank, other than a savings bank, or by a trust company or by a firm having membership on a registered national securities exchange.

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