Document:

bmmj_ex102.htm

EXHIBIT 10.2
 
	THE SECURITIES OFFERED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS, AND ARE PROPOSED TO BE ISSUED IN RELIANCE UPON AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES ACT. SUCH SECURITIES MAY NOT BE REOFFERED FOR SALE, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S. SECURITIES ACT.
 
BODY AND MIND INC. 
 
SUBSCRIPTION AGREEMENT
(for Canadian, United States and International Subscribers)

 
	INSTRUCTIONS FOR SUBSCRIBERS
 
A completed and originally executed copy of this Subscription Agreement together with funds must be delivered or transmitted to M Partners Inc. by no later than 5:00 p.m. (Vancouver time) on May 6, 2019. 
 
After reviewing the terms and conditions of this Subscription Agreement carefully, please sign Page 3, and complete all portions, including:

	 
	 
	 

	 
	(a) 
	applicable boxes set out in Page 3 (below); 
	 
	 
	 

	 
	(b) 
	if you are a Canadian resident, complete and sign Schedule “B” including, if applicable, Appendix A to Schedule “B”; 

	 
	 
	 

	 
	(c) 
	if you are a U.S. Person (as defined below), as a U.S. Accredited Investor, complete and sign Schedule “C” in accordance with the instructions set out therein; and

	 
	 
	 

	 
	(d) 
	if a resident of a jurisdiction other than Canada or the United States, complete and sign:

	 
	 
	 
	 

	 
	 
	(i)
	Schedule “B” including, if applicable, Appendix A to Schedule “B”; and 

	 
	 
	 
	 

	 
	 
	(ii)
	Schedule “D”.

	 
	 
	 
	 

  
	 
	 
	
 
	 

- 2 -
 
UNIT SUBSCRIPTION AGREEMENT
 
	TO:
	BODY AND MIND INC. (the “Company”)

	 
	 

	AND TO:
	M PARTNERS INC. (the “Lead Agent”) and PI FINANCIAL CORP. (together with the Lead Agent, the “Agents”)

 
The undersigned (the “Purchaser”), on its own behalf, and, if applicable, on behalf of those for whom the undersigned is contracting hereunder, subject to the terms and conditions set forth in this Subscription Agreement (including all schedules hereto, this “Subscription Agreement”), agrees to purchase from the Company that number of units (the “Units”) of the Company set out on page 3 of this Subscription Agreement, upon and subject to the terms and conditions set out in this Subscription Agreement, at a price of CAD$1.25 per Unit (the “Subscription Price”), each Unit consisting of one common share in the capital of the Company (a “Unit Share”) and one common share purchase warrant of the Company (a “Warrant”). The Purchaser understands that its investment in the Company is part of a larger offering by the Company of up to CAD$10 million of Units. The Company has also granted the Agents the right to purchase up to an additional CAD$10 million of Units for total gross proceeds of up to CAD$20 million. The offer and sale by the Company of up to CAD$20 million of Units is referred to herein as the “Offering”. Net proceeds of the Offering will be used for working capital purposes and general corporate purposes.
 
Each Warrant entitles the holder thereof to acquire one common share in the capital of the Company (a “Warrant Share”) for an exercise price of CAD$1.50 (the “Exercise Price”) per Warrant Share for a period of 48 months following the Closing Date (subject to adjustment in certain customary events). The Warrants will be governed by a warrant indenture (the “Warrant Indenture”) to be in form and substance satisfactory to the Company and the Agents.
 
The Unit Shares and the Warrants being issued and sold by the Company pursuant to the Offering are collectively referred to as the “Offered Securities”. Subject to fulfilling the requirements of the Exchange (as defined below), the Unit Shares and Warrant Shares will be listed on the Exchange. The Unit Shares, the Warrants and the Warrant Shares be referred to herein individually as a “Security” and collectively as the “Securities”.
 
The Purchaser agrees to be bound by the terms and conditions set forth in the attached Schedule “A”, and makes the acknowledgements, representations, warranties and set out in the applicable Schedules attached hereto, upon which the Purchaser acknowledges the Company and the Agents are relying in respect of this subscription. This subscription is subject to acceptance by the Company and may be accepted as to the number of the Units set out below or such lesser number as may be determined by the Company in its discretion.
 
In this Subscription Agreement, certain representations and warranties are to be made by the Purchaser so that the Company can ensure compliance with Applicable Securities Laws (as hereinafter defined). These representations and warranties are set out in Section 10 and 11 of Schedule “A”, and, if applicable, all of Schedule “B”, all of Schedule “C” and Schedule “D”, and all Schedules hereto are part of and are hereby incorporated as part of this Subscription Agreement. The Purchaser acknowledges its consent and request that this Subscription Agreement (including all Schedules hereto) and all other documents evidencing or relating in any way to its purchase of the Units be drawn up in the English language only. Nous reconnaissons par les présentes avoir consenti et demandé à ce que la présente convention de souscription (et les annexes s’y rapportant) et tous les autres documents faisant foi ou se rapportant de quelque manière à notre souscription soient rédigés en anglais seulement.
 
	 
	 
	
 
	 

- 3 -
 
Please print all information (other than signatures), as applicable, in the spaces provided below.
 
	                                                                                                     
(Name of Purchaser)
 
By: ________________________________________
Authorized Signature
________________________________________
(Official Capacity or Title – please print)
 
________________________________________
Please print name of individual whose signature appears above if different than the name of the subscriber printed above.
 
________________________________________
(Purchaser’s Address, including Municipality and Province)
 
________________________________________
 
________________________________________
(Telephone Number) 
 
________________________________________
(E-mail Address)
		Number of Units: 
 
_______________________________ Subscription Price of Units:
$_______________________________

	 

	If the person signing this Subscription Agreement is signing as agent for one or more beneficial purchasers and is not a trust company or a trust corporation acting on behalf of a fully managed account managed by it or a person acting on behalf of a fully managed account managed by it, you must complete the following and ensure that the attached schedules are completed on behalf of each beneficial purchaser.
 
________________________________________
(Name of Principal)
________________________________________
(Principal’s address)
________________________________________
 
________________________________________
(Telephone Number) 
________________________________________
(E-mail Address)

		 

	Account Registration Information:
 
________________________________________
(Name)
________________________________________
 
________________________________________
(Address)
________________________________________
	Delivery Instructions as set forth below:
 
________________________________________
(Name)
________________________________________
(Address)
________________________________________
 
________________________________________
(Telephone Number)

 
	 
	 
	
 
	 

 
ACCEPTANCE
 
The foregoing is acknowledged, accepted and agreed to this ___ day of ______________, 2019.
 
	 	BODY AND MIND INC.
	
	 	 	 	 
		Per:
	 	
	 
	 
	Authorized Signatory
	 

 
	 
	 
	
 
	 

- A-1 -
 
SCHEDULE “A” 
TERMS AND CONDITIONS OF SUBSCRIPTION
 
	1.	Offering and Subscription

 
The Purchaser hereby tenders to the Company this Subscription Agreement which, upon acceptance by the Company, will constitute an irrevocable agreement of the Purchaser to purchase from the Company, and of the Company to sell to the Purchaser, the Units as set out on the subscription page above at the Subscription Price, all on the terms and subject to the conditions set out in this Subscription Agreement. 
 
These Units are being sold by the Company pursuant to the terms of an agency agreement (the “Agency Agreement”) to be entered into on the Closing Date between the Company and the Agents. The Offering is being made by the Agents on a commercially reasonable best efforts private placement basis without underwriter liability.
 
Each Warrant entitles the holder thereof to acquire one Warrant Share for an exercise price of CAD$1.50 per Warrant Share for a period of 48 months following the Closing Date (subject to adjustment in certain customary events). The Warrants comprising the Units shall be created and issued pursuant to a Warrant indenture to be entered into between the Company and the warrant agent and be dated the Closing Date. 
 
The Closing of the Offering is subject to the Company’s satisfaction, or the Lead Agent’s waiver, of the following conditions precedent:
 
	 
	(a)	the Company and the Agents entering into the Agency Agreement in a form mutually satisfactory to the Company and the Agents, which Agency Agreement will include the terms and conditions provided herein, and industry standard covenants, representations and warranties to be given by the Company to the Agents, and provisions regarding legal opinions, indemnification, contribution, termination clauses and other relevant matters as the Agents may reasonably determine, and which Agency Agreement will also contain customary “disaster-out”, “market-out”, “material adverse change-out”, “due diligence-out”; and
	 
	 
	 

	 
	(b)	the Agents not having terminated the Offering pursuant to the terms and conditions of the engagement agreement made between the Company and the Lead Agent dated April 10, 2019.

 
	2.	Definitions

 
In this Subscription Agreement and the schedules to this Subscription Agreement, unless the context otherwise requires:
 
		“Agency Agreement” has the meaning set forth in Section 1 hereof;
	 
	 

		“Agents” means the M Partners Inc. and PI Financial Corp.;
	 
	 

		“Agents’ Commission” has the meaning set forth in Section 3 hereof;
	 
	 

		“Applicable Securities Laws” means, collectively, the applicable securities laws of each of the Offering Jurisdictions and the respective regulations and rules made and forms prescribed thereunder together with all applicable and legally enforceable published policy statements, multilateral or national instruments, blanket orders, rulings and notices of the Securities Commissions;

 
	 
	 
	
 
	 

- A-2 -
 
		“Change of Control” has the meaning set forth in the Term Sheet;
	 
	 

		“Closing Date” means on or about May 10, 2019, or such other date or dates upon which the Company and the Agents may agree;
	 
	 

		“Closing Time” means 9:00 a.m. (Toronto time) on the Closing Date, or such other time on the Closing Date as the Company and the Agents may agree;
	 
	 

		“Company” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

		“Compensation Warrants” has the meaning set forth in Section 3 hereof;
	 
	 

		“Exchange” means the Canadian Securities Exchange;
	 
	 

		“Exercise Price” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

		“herein”, “hereof” and similar expressions mean and refer to this Subscription Agreement and not to a particular Article or Section, and the expression “Article” or “Section” followed by a number means and refers to the specified Article or Section of this Schedule “A” to the Subscription Agreement;
	 
	 

		“including” means including without limitation;
	 
	 

		“International Jurisdiction” has the meaning set forth in Section 11(b)(iii) hereof;
	 
	 

		“Lead Agent” means M Partners Inc.;
	 
	 

		“Offered Securities” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

		“Offering” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

		“Offering Jurisdictions” means all of the provinces and territories of Canada, to the extent that any Purchasers of Units are resident therein and otherwise in those jurisdictions where the Offering can lawfully be made;
	 
	 

		“PCMLTFA” has the meaning set forth in Section 11(k) hereof;
	 
	 

		“Purchaser” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

		“Regulation D” means Regulation D promulgated under the U.S. Securities Act;
	 
	 

		“Regulation S” means Regulation S promulgated under the U.S. Securities Act;
	 
	 

		“Securities Commissions” means, collectively, the applicable securities commission or other securities regulatory authority in each of the Offering Jurisdictions;
	 
	 

		“Security” or “Securities” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

 
	 
	 
	
 
	 

- A-3 - 
 
		“Subscription Agreement” means this Subscription Agreement (including any Schedules hereto) and any instrument amending this Subscription Agreement;
	 
	 

		“Subscription Price” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

		“Unit Shares” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

		“United States” means the United States of America, its territories and possessions, any State of the United States and the District of Columbia;
	 
	 

		“Units” has the meaning given thereto on page 2 of this Subscription Agreement;
	 
	 

	 
	“U.S. Accredited Investor” means an “accredited investor” as defined by Rule 501(a) of Regulation D adopted pursuant to the U.S. Securities Act;
 
“U.S. Person” has the meaning set forth in Rule 902(k) of Regulation S under the U.S. Securities Act. Without limiting the foregoing, but for greater clarity in this Subscription Agreement, a U.S. Person includes, subject to the exclusions set forth in Regulation S: (a) any natural person resident in the United States; (b) any partnership, limited liability company or corporation organized or incorporated under the laws of the United States; (c) any estate or trust of which any executor, administrator or trustee is a U.S. Person; (d) any discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated, or (if an individual) resident in the United States; and (e) any partnership or corporation organized or incorporated under the laws of any non‐U.S. jurisdiction which is formed by a U.S. Person principally for the purpose of investing in securities not registered under the U.S. Securities Act, unless it is organized or incorporated, and owned, by U.S. Accredited Investors who are not natural persons, estates or trusts;
 
“U.S. Securities Act” means the United States Securities Act of 1933, as amended;
 
“Warrant” has the meaning given thereto on page 2 of this Subscription Agreement;
 
“Warrant Certificate” mean the certificate representing the Warrants; 
 
“Warrant Indenture” has the meaning given thereto on page 2 of this Subscription Agreement; and
 
“Warrant Share” has the meaning given thereto on page 2 of this Subscription Agreement.

	 
	 

	3. 
	Agents’ Compensation

  
The Company will pay the Agents at the Closing Time a cash commission equal to 7.50% of the gross proceeds raised in the Offering (the “Agents’ Commission”).
 
As additional consideration, the Company will issue the Agents such number of non-transferable compensation warrants (the “Compensation Warrants”) as is equal to 7.50% of the number of Units issued pursuant to the Offering.
 
Upon the execution of the Engagement Letter, the Company paid the Lead Agent a work fee of CAD$60,000 plus HST.
 
	 
	 
	
 
	 

- A-4 - 
 
Notwithstanding the above, the Company will retain the right to create a President’s list of purchasers (the “President’s List”) for up to $4 million of Units. At the Closing Time, the Company will pay to the Agents a cash commission equal to 1.0% of the gross proceeds raised from the President’s List purchasers and will issue to the Agents that number of Compensation Warrants equal to 1.0% of the number of Units sold to purchasers on the President’s List. 
 
Each Compensation Warrant entitles the holder thereof to acquire one Unit for an exercise price of CAD$1.25 per Unit for a period of four years following the Closing Date (subject to adjustment in certain customary events).
 
	4.	Expenses

 
The Company is also responsible for all reasonable expenses of the Offering, including but not limited to: (a) fees and disbursements of accountants and auditors, technical consultants, translators and other applicable experts; (b) all costs and expenses related to roadshows and marketing activities, printing, filing, issue, sale and distribution, stock exchange approval and other regulatory compliance; (c) other reasonable out-of-pocket expenses of the Agents (including, but not limited to, travel expenses in connection with due diligence and marketing activities, and fees and disbursements of the Agents’ legal counsel (in Canada and in foreign jurisdictions, including the United States) and all taxes payable in respect of any of the foregoing); and (d) including any expenses incurred prior to the date first written above and all taxes payable in respect of any of the foregoing. All such fees, disbursements and expenses shall be payable by you immediately upon receiving an invoice therefor from the Lead Agent, or at the option thereof, may be deducted from the gross proceeds of the Offering otherwise payable by the Agents to the Company at the closing of the Offering. Notwithstanding the foregoing, the Agents’ counsel’s fees shall be capped at a maximum of CAD$25,000 plus applicable disbursements and taxes.  
The Purchaser will purchase and pay for the Purchaser’s Units at the closing of the Offering, upon acceptance of this offer by the Company and the satisfaction by the Company, or waiver on behalf of the Purchaser by the Lead Agent, of the conditions set out in the Agency Agreement. The Purchaser acknowledges that the Agents retain the right to exercise or not to exercise, as it determines, in its sole discretion, the rights of termination as contained in the Agency Agreement, and the Agents will have no liability to the Purchaser whatsoever in connection with any such decision.
 
	5.	Delivery and Payment

 
The Purchaser agrees that the following must be delivered to the Agents in the manner specified by the Agents no later than 5:00 p.m. (Vancouver time) on May 6, 2019, or such other date or dates as the Company and the Agents may determine:
 
	 
	(a)	a duly-executed copy of this Subscription Agreement;
	 
	 
	 

	 
	(b)	a certified cheque, bank draft or payment by wire transfer for the aggregate Subscription Price of the Units made payable to the Agents or to such other party as the Agents may direct;
	 
	 
	 

	 
	(c)	if the Purchaser is a Canadian resident, the Accredited Investor Exemption Certificate, completed and duly signed in the form of Schedule “B” hereto (by completing the relevant certificate and initialing the category that applies to the Purchaser (or others on whose behalf the Purchaser is contracting hereunder));

 
	 
	 
	
 
	 

- A-5 - 
 
	 
	(d)	if the Purchaser is a U.S. Person, or is not a U.S. Person but was offered the Units, or executed or delivered this Subscription Agreement, in the United States, or is purchasing the Units for the account or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States, and both the Subscriber and the person for whose account or benefit the Subscriber is acting, if any, is a U.S. Accredited Investor, the Purchaser has duly completed, executed and delivered to the Agents the U.S. Accredited Investor Certificate, completed and duly signed in the form of Schedule “C” hereto (by completing the relevant certificate and initialing the category that applies to the Purchaser (or others on whose behalf the Purchaser is contracting hereunder));
	 
	 
	 

	 
	(e)	if the Purchaser is a resident of an International Jurisdiction (as hereinafter defined), the Accredited Investor Exemption Certificate, completed and duly signed in the form of Schedule “B” hereto (by completing the relevant certificate and initialing the category that applies to the Purchaser (or others on whose behalf the Purchaser is contracting hereunder)), and the Offshore Purchaser Certificate, completed and duly signed in the form of Schedule “D” hereto; and
	 
	 
	 

	 
	(f)	such other documents as may be required pursuant to terms of this Subscription Agreement.

   
	6.
	Closing

	 
	 
	 

	 
	(a)	Subject to the determination of the Company and the Agents, the transactions contemplated herein may close in one or more subsequent tranches after the initial Closing Date;
	 
	 
	 

	 
	(b)	This subscription is subject to acceptance by the Company. Unless other arrangements have been made with the Company, at the Closing Time, the Unit Share Certificate and the Warrant Certificate will be delivered to the address set out for delivery on the face pages of this Subscription Agreement promptly thereafter; and
	 
	 
	 

	 
	(c)	The Company’s obligation to complete the purchase and sale of the Units is subject to the following conditions:

 
	 
	(i)	the Purchaser will have complied with the requirements of Section 5 hereof and the applicable documents and payment will have been received as contemplated;
	 
	 
	 

	 
	(ii)	the representations and warranties made by the Purchaser in this Subscription Agreement are true and correct as of the date when made, as of the Closing Time, as though made at that time (except for representations and warranties that speak as of a specific date) and all undertakings of the Purchaser have been performed, satisfied and complied with on or before the Closing Time; and
	 
	 
	 

	 
	(iii)	receipt of such other documents relating to the transactions contemplated by this Subscription Agreement as the Company or its counsel may reasonably request.

 
	 
	 
	
 
	 

- A-6 - 
 
	7.	Power of Attorney

 
The Agents are hereby appointed as the Purchaser’s agents and attorneys to represent the Purchaser, and any beneficial purchaser for whom the Purchaser is contracting hereunder, at the closing of the Offering for the purpose of all closing matters, deliveries of documents, receipt of the Unit Share Certificate, the Warrant Certificate or other evidence of ownership of the Purchaser’s Unit Shares and Warrants and is hereby irrevocably authorized by the Purchaser for and on behalf of the Purchaser, and any beneficial purchaser for whom the Purchaser is acting as agent or trustee, to extend such time periods and modify or waive such conditions as may be contemplated herein or in the Agency Agreement or, in their absolute discretion, as they deem appropriate. Without limiting the generality of the foregoing, the Agents are specifically and irrevocably authorized to:  
	 
	(a)	waive any representations and warranties, covenants or conditions contained in the Agency Agreement;
	 
	 
	 

	 
	(b)	correct minor errors or omissions in the information provided by the Purchaser in this Subscription Agreement, including any Schedules hereto, and any other documents or forms delivered by the Purchaser in connection with the transactions contemplated hereby, if any;
	 
	 
	 

	 
	(c)	negotiate and settle the form of the Warrant Indenture and Warrant Certificate and any other certificates to be delivered and any agreement to be entered into in connection with the Offering and to vary, amend, alter or waive, on its own behalf and on behalf of the Purchaser, in whole or in part, or extend the time for compliance with, any of the conditions, representations, warranties or covenants in the Warrant Indenture and the Warrant Certificate in such manner and on such terms and conditions as the Agents may determine, acting reasonably, without in any way affecting the Purchaser’s obligations or the obligations of such others hereunder; provided, however, that the Agents will not vary, amend, alter or waive any such condition, representation, warranty or covenant where to do so would result in a material change to any of the material attributes of the Unit Shares or the Warrants or contents thereof;
	 
	 
	 

	 
	(d)	allocate the Unit Shares and Warrants being offered pursuant to the Offering and in accordance with the terms of the Agency Agreement; and
	 
	 
	 

	 
	(e)	act as its representative at the closing of the Offering with full power of substitution, as its true and lawful attorney and agent with the full power and authority in its place and stead to swear, execute, file and record any document necessary, to approve any opinions, certificates or other documents addressed to the Purchaser, to accept delivery of the Unit Share Certificate and the Warrant Certificate on the closing of the Offering, to terminate this subscription on its behalf in the event that any condition precedent to the Offering has not been satisfied, to execute a receipt for such certificates and all other documentation, and to deliver such certificates to the Purchaser as set out in this Subscription Agreement promptly after the Closing Time.

  
	8.	Acceptance of Subscription

 
This subscription may be accepted in whole or in part and the right is reserved to the Company to allot to any subscriber less than the aggregate Subscription Price subscribed for by the Purchaser. Confirmation of acceptance or rejection of this subscription will be forwarded to the Purchaser promptly after the acceptance or rejection of this subscription by the Company. If this subscription is rejected in whole, the Purchaser understands that any certified cheques or bank drafts delivered by the Purchaser to the Company representing the purchase price for the Units will be promptly returned to the Purchaser without interest. If this subscription is accepted only in part, the Purchaser understands that a cheque representing the portion of the purchase price for that portion of the Purchaser’s subscription for Units which is not accepted will be promptly delivered to the Purchaser, without interest.  
	 
	 
	
 
	 

- A-7 - 
 
	9.	Acknowledgements of ALL Purchasers

 
The Purchaser acknowledges and agrees, on his, her or its own behalf and (if applicable) on behalf of others for whom the Purchaser is contracting hereunder, that:
 
	 
	(a)	the sale of the Units to the Purchaser, or (if applicable) to such others for whom the Purchaser is contracting hereunder is conditional upon:

 
	 
	(i)	such sale being exempt from the prospectus filing requirements of all applicable securities legislation relating to such sale or upon the issuance of such rulings, orders, consents or approvals as may be required to permit such sale without the requirement of filing a prospectus;
	 
	 
	 

	 
	(ii)	no agency, governmental authority, regulatory body, stock exchange or other entity having made any finding or determination as to the merit for investment of, nor have any such agencies or governmental authorities made any recommendation or endorsement with respect to the Offered Securities or the underlying Warrant Shares;
	 
	 
	 

	 
	(iii)	other than the investor presentation of the Company dated April 2019, the Purchaser having not received, nor requested, any prospectus, sales or advertising literature, offering memorandum or any other document describing the business and affairs of the Company, which has been prepared for delivery to, and review by, prospective purchasers in order to assist them in making an investment decision in respect of the Units, and the Purchaser not having become aware of any advertisement in printed public media, radio, television or telecommunications, including electronic display such as the internet, with respect to the distribution of the Securities;
	 
	 
	 

	 
	(iv)	no prospectus or registration statement having been filed by the Company with a Securities Commission or other securities regulatory authority in any province of Canada or any other jurisdiction in connection with the issuance of the Units and such issuances are exempt from the prospectus or registration requirements otherwise applicable under the provisions of Canadian and United States securities laws and, as a result, in connection with the purchase of Units hereunder:

 
	 
	(1)	the Purchaser, and (if applicable) others for whom the Purchaser is contracting hereunder, are restricted from using most of the civil remedies available under Applicable Securities Laws;
	 
	 
	 

	 
	(2)	the Purchaser, and (if applicable) others for whom the Purchaser is contracting hereunder, will not receive information that would otherwise be required to be provided to the Purchaser under Applicable Securities Laws or contained in a prospectus prepared in accordance with Applicable Securities Laws; and
	 
	 
	 

	 
	(3)	the Company is relieved from certain obligations that would otherwise apply under such Applicable Securities Laws;

 
	 
	 
	
 
	 

- A-8 - 
 
	 
	(v)	the Securities will be issued pursuant to prospectus exemptions under National Instrument 45-106 - Prospectus Exemptions in all provinces and territories of Canada, and similar exemptions under other Applicable Securities Laws, as mutually agreed upon between the Company and the Agents, on a private placement or equivalent basis in accordance with applicable laws; provided, however, that such laws permit offers and sales of the Securities on a private placement basis and without any obligation on the part of the Company to prepare or file any registration statement, prospectus or other disclosure document and without triggering any disclosure obligations or submission to the jurisdiction on the part of the Company;
	 
	 
	 

	 
	(vi)	(1) the certificates representing the Offered Securities, and the certificates representing the Warrant Shares if issued prior to four months after the Closing Date, will bear a legend in substantially the following form:
	 
	 
	 

	 
	 
	“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [INSERT THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE DISTRIBUTION DATE].”
 
(2) if the Purchaser is a U.S. Person or purchasing the Units for the account or benefit of a U.S. Person or a person in the United States, then the Purchaser also acknowledges and understands that the certificates representing the Securities will be required to be stamped with the following legend (or substantially equivalent language) restricting transfer in the following manner in the United States:
 
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE [for warrants add: AND THE SECURITIES ISSUABLE HEREUNDER] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”
 
(3) if the Purchaser is outside of the United States and is not (A) a U.S. Person, or (B) purchasing the Units for the account or benefit of a U.S. Person or a person in the United States, then the Purchaser also acknowledges and understands that the certificates representing the Securities will be required to be stamped with the following legend (or substantially equivalent language) restricting transfer in the following manner:
 
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE [for warrants add: AND THE SECURITIES ISSUABLE HEREUNDER] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE SECURITIES REPRESENTED BY THE CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES ACT.”

 
	 
	 
	
 
	 

- A-9 - 
 
	 
	 
	provided, however, in either (2) or (3) above, if any Securities are being sold, the legend may be removed by delivery to the registrar and transfer agent and the Company of an opinion of counsel, of recognized standing reasonably satisfactory to the Company, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.
 
(4) the Purchaser understands and acknowledges that in addition to the legends set forth above, the certificates representing the Warrants will also bear a legend in substantially the following form:
 
“THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.”;

 
	 
	(b)	The Securities have not been and will not be registered under the U.S. Securities Act, or any state securities laws and accordingly, the Offered Securities are “restricted securities” within the meaning of Rule 144(a)(3) of the U.S. Securities Act;
	 
	 
	 

	 
	(c)	the Purchaser’s ability to transfer the Securities is limited by, among other things, the Applicable Securities Laws. The Securities will be subject to statutory resale restrictions under the Applicable Securities Laws, and the Purchaser covenants that it will not resell the Securities except in compliance with such laws and the Purchaser acknowledges that it is solely responsible (and the Company is not in any way responsible) for such compliance.
	 
	 
	 

	 
		The Purchaser acknowledges that the Securities have not been registered under the U.S. Securities Act and the Company has no obligation or present intention of filing a registration statement under the U.S. Securities Act in respect of the Securities. The Purchaser agrees to resell the Securities only in accordance with the provisions of Applicable Securities Laws pursuant to a registration under the U.S. Securities Act, or pursuant to an available exemption from such registration (in particular the provisions of Regulation S or Rule 144, as applicable), and that hedging transactions involving the Securities may not be conducted unless in compliance with the U.S. Securities Act. The Purchaser understands that any certificate representing the Securities will bear a legend setting forth the foregoing restrictions in (a)(vi) above. The Purchaser understands that the Securities are “restricted securities” within the meaning of Rule 144 promulgated under the U.S. Securities Act, that the exemption from registration under Rule 144 will not be available in any event for at least six months from the Closing Date for the Offered Securities and other terms and conditions of Rule 144 are complied with.

 
	 
	 
	
 
	 

- A-10 - 
 
	 
	The Purchaser further acknowledges and understands that the Purchaser agrees that the Purchaser shall in no event make any disposition of all or any portion of the Securities which the Purchaser is acquiring hereunder unless and until:

	 
	 
	 

	 
	(i)	there is then in effect a “Registration Statement” under the U.S. Securities Act covering such proposed disposition and such disposition is made in accordance with said Registration Statement; or
	 
	 
	 

	 
	(ii)	(A) the Purchaser shall have notified the Company of the proposed disposition and shall have furnished the Company with a detailed statement of the circumstances surrounding the proposed disposition, (B) the Purchaser shall have furnished the Company with an opinion of the Purchaser’s own counsel to the effect that such disposition will not require registration of any such Securities under the U.S. Securities Act and (C) such opinion of the Purchaser’s counsel shall have been concurred in by counsel for the Company and the Company shall have advised the Purchaser of such concurrence.

 
	 
	(d)	that the Purchaser consents to the Company making a notation on its records and/or giving instruction to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described herein;
	 
	 
	 

	 
	(e)	all costs and expenses incurred by the Purchaser and each beneficial purchaser, if any, for whom the Purchaser is contracting hereunder, (including any fees and disbursements of legal counsel retained by the Purchaser or any beneficial purchaser) relating to the purchase of the Purchaser’s Units will be borne solely by the Purchaser or the beneficial purchaser;
	 
	 
	 

	 
	(f)	the Purchaser, on his or her own behalf and (if applicable) on behalf of others for whom the Purchaser is contracting hereunder, agree to provide the Company with such information and documents, including certificates, statutory declarations and undertakings, as they may reasonably require from time to time to comply with any filing or other requirements under Applicable Securities Laws;
	 
	 
	 

	 
	(g)	the Agents will be paid the Agents’ Commission as described herein;
	 
	 
	 

	 
	(h)	the Purchaser is solely responsible for obtaining such tax, investment, legal and other professional advice as it considers appropriate in connection with the offer, sale and issuance of the Purchaser’s Securities, the execution, delivery and performance by it of this Subscription Agreement, applicable tax considerations and the applicable hold periods and resale restrictions imposed in respect of the Purchaser’s Securities by applicable securities legislation and regulatory policies, and confirms that it (and any disclosed principal, if applicable) is not relying on the Company, the Agents and their affiliates or counsel to any of them in this regard. The Purchaser is solely responsible for compliance with applicable resale restrictions and applicable tax legislation;
	 
	 
	 

	 
	(i)	the Agents are acting solely as placement agent for the Company in connection with the Offering and not as financial advisor or investment advisor to the Purchaser or as an agent of the Purchaser;

  
	 
	 
	
 
	 

- A-11 - 
 
	 
	(j)	the Purchaser, and each beneficial purchaser, if any, for whom the Purchaser is contracting hereunder, has had the opportunity to review this Subscription Agreement and the Schedules attached hereto and the transactions contemplated by this Subscription Agreement and fully understands the same;
	 
	 
	 

	 
	(k)	the Purchaser, and each beneficial purchaser, if any, for whom the Purchaser is contracting hereunder, has had the opportunity to ask questions and receive answers concerning the terms and conditions of the Offering and it has had access to such information concerning the Company as it has considered necessary or appropriate in connection with its investment decision to acquire the Units; and
	 
	 
	 

	 
	(l)	the Purchaser understands and agrees that there may be material tax consequences to the Purchaser of an acquisition or disposition of the Securities. The Company gives no opinion and makes no representation with respect to the tax consequences to the Purchaser under United States, state, local or foreign tax law of the undersigned’s acquisition or disposition of such securities. In particular, no determination has been made whether the Company will be a “passive foreign investment company” (“PFIC”) within the meaning of Section 1291 of the United States Internal Revenue Code.
	 
	 
	 

	10.
	Representations, Warranties, Covenants and Acknowledgements of Purchasers who are U.S. Persons or who are in the United States 

  
The Purchaser, which is a U.S. Person, or is not a U.S. Person but was offered the Units, or executed or delivered this Subscription Agreement, in the United States, or is purchasing the Units for the account or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States, on its own behalf and, if applicable, on behalf of others for whom it is acting hereunder, hereby represents and warrants to, and covenants with, the Company and the Agents as follows and acknowledges that the Company and the Agents are relying on such representations and warranties and covenants in connection with the transactions contemplated herein:
 
	 
	(a)	that the Purchaser is a U.S. Accredited Investor and is acquiring the Units for its own account or for the account of another U.S. Accredited Investor over which the Purchaser exercises sole investment direction and not with a view to resale for distribution of the Offered Securities or the Warrant Shares in violation of United States securities laws; and the Purchaser certifies that it is a resident in the jurisdiction set out on page 3 of this Subscription Agreement and that the investment decision with respect to the Units was made in such jurisdiction, and that such address was not created and is not used solely for the purpose of acquiring the Units and the Purchaser was solicited to purchase in such jurisdiction;
	 
	 
	 

	 
	(b)	that, in the event that the Purchaser requests that the certificates representing the Unit Shares or the Warrants be registered and/or delivered in the name of someone with an address in a state other than the state of its residence as set out on page 3 of this Subscription Agreement, it has done so only for safekeeping or as a bare trusteeship with respect to such certificate in accordance with its normal business practice;
	 
	 
	 

	 
	(c)	that the subscription for the Offered Securities has not been made through or as a result of any form of “directed selling efforts” (as such term is used in Regulation S under the U.S. Securities Act) or general solicitation or general advertising (as such terms are used in Rule 502(c) of Regulation D under the U.S. Securities Act), including by any advertisement, article, notice or other communication published in any newspaper, magazine or similar media or broadcast over radio, television or telecommunications, including electronic display and the Internet, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;

 
	 
	 
	
 
	 

- A-12 - 
 
	 
	(d)	the Warrants may not be exercised by or on behalf of a U.S. Person or a person in the United States unless an exemption is available from the registration requirements of the U.S. Securities Act and the securities laws of all applicable states, and the holder has furnished an opinion of counsel satisfactory to the Company to such effect; provided, however, that, a holder that is an original Purchaser hereunder will not be required to deliver an opinion of counsel in connection with its due exercise of the Warrants, for its own account or for the account of the original beneficial purchaser, if any, at a time when such holder and such original beneficial purchaser thereof, if any, are U.S. Accredited Investors;
	 
	 
	 

	 
	(e)	that the Purchaser agrees to indemnify and hold harmless the Company and the Agents and each of their respective officers, directors, employees and agents from and against any and all costs, liabilities and expenses, including attorneys’ fees, arising out of or related in any way to any breach of any confirmation, representation, warranty or undertaking of the Purchaser contained in this Subscription Agreement;
	 
	 
	 

	 
	(f)	that neither the Offered Securities nor the Warrant Shares have been or will be registered under the U.S. Securities Act or any applicable state securities laws, the offer and sale are being made in reliance on a private placement exemption provided by Rule 506(b) of Regulation D under the U.S. Securities Act to investors who are U.S. Accredited Investors, and the Offered Securities and the Warrant Shares may be offered, sold, or otherwise transferred only: (A) to the Company; (B) pursuant to an effective registration statement under the U.S. Securities Act; (C) in accordance with Rule 144 under the U.S. Securities Act, if available, and in compliance with applicable state securities laws; (D) in accordance with the provisions of Regulation S, if available; or (E) in a transaction that does not otherwise require registration under the U.S. Securities Act or any applicable state securities laws if an opinion of counsel, of recognized standing reasonably satisfactory to the Company, has been provided to the Company to that effect. The Purchaser understands that the Company has no present intention to register the Offered Securities or the Warrant Shares pursuant to the U.S. Securities Act. The Purchaser further understands that there is no assurance that any exemption from registration under the U.S. Securities Act will be available and that, even if available, such exemption may not allow the Purchaser to transfer all or any portion of the Offered Securities or the Warrant Shares under the circumstances, in the amounts or at the times that the Purchaser may propose;
	 
	 
	 

	 
	(g)	that the Purchaser understands that the Company may instruct its registrar and transfer agent not to record any transfer of the Offered Securities or the Warrant Shares without first being notified by the Company that it is satisfied that such transfer is exempt from, or not subject to, the registration requirements of, the U.S. Securities Act and applicable state securities laws;
	 
	 
	 

	 
	(h)	that the Purchaser understands and acknowledges that the Company has no obligation to file, or present intention of filing, with the United States Securities and Exchange Commission or with any state securities administrator, any registration statement in respect of resales of the Securities in the United States; and

 
	 
	 
	
 
	 

- A-13 - 
 
	 
	(i)	that the Purchaser understands and agrees that there may be material tax consequences to the Purchaser of an acquisition, disposition, exercise or conversion of any of the Offered Securities and the Warrant Shares, and that the Company gives no opinion and makes no representation with respect to the tax consequences to the Purchaser under United States, state, local or foreign tax law of the Purchaser’s acquisition, holding or disposition of such securities, and the Subscriber acknowledges that it is solely responsible for determining the tax consequences of its investment.
	 
	 
	 

	11.
	Representations, Warranties, Covenants and Acknowledgement of ALL Purchasers

 
The Purchaser, on his, her or its own behalf and (if applicable) on behalf of others for whom the Purchaser is contracting hereunder, acknowledges, represents, warrants and covenants to and with the Company and the Agents (and acknowledges that the Company and the Agents are relying thereon) as follows:
 
	 
	(a)	Jurisdiction of Residence – the Purchaser, on his or her own behalf and (if applicable) on behalf of others for whom the Purchaser is contracting hereunder, is resident or otherwise subject to the applicable securities legislation in the jurisdiction set out as the Purchaser’s address on page 3 of this Subscription Agreement, and the purchase by and sale to the Purchaser, and any such others, of the Units has occurred only in such jurisdiction;
	 
	 
	 

	 
	(b)	Prospectus Exempt Purchaser –

 
	 
	(i)	Canadian Purchaser - Unless exempted by an order of the Securities Commission or similar regulatory authority of the province in which it resides, the Purchaser is an “accredited investor”, as such term is defined in National Instrument 45-106 - Prospectus Exemptions and has concurrently executed and completed the Accredited Investor Exemption Certificate at Schedule “B” to this Subscription Agreement, along with Appendix A to Schedule “B” if the Purchaser is an individual;
	 
	 
	 

	 
	(ii)	United States Purchaser - If the Purchaser is a U.S. Person, or is not a U.S. Person but was offered the Units, or executed or delivered this Subscription Agreement, in the United States, or is purchasing the Units for the account or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States, and both the Subscriber and the person for whose account or benefit the Subscriber is acting, if any, the Purchaser is a U.S. Accredited Investor and has concurrently executed and completed the U.S. Accredited Investor Certificate in the form of Schedule “C” hereto (by completing the relevant certificate and initialing the category that applies to the Purchaser (or others on whose behalf the Purchaser is contracting hereunder)); or
	 
	 
	 

	 
	(iii)	International Jurisdiction Purchaser - If the Purchaser is a resident of a jurisdiction outside of Canada and the United States (an “International Jurisdiction”), the Purchaser is an “accredited investor”, as such term is defined in National Instrument 45-106 - Prospectus Exemptions and has concurrently executed and completed the Accredited Investor Exemption Certificate at Schedule “B” to this Subscription Agreement, along with Appendix A to Schedule “B” if the Purchaser is an individual, and the Purchaser has concurrently executed and completed the Offshore Purchaser Certificate at Schedule “D” and, in addition to the other representations and warranties contained herein, the Purchaser represents and warrants that the subscription for the Units by the Purchaser is being made pursuant to exemptions under, and does not contravene any of the applicable securities legislation in that International Jurisdiction and does not give rise to any obligation of the Company to prepare and file a prospectus or similar document or to register the Units or Warrant Shares, or to be registered with or to file any report or notice with any governmental or regulatory authority of any kind whatsoever in that International Jurisdiction;

 
	 
	 
	
 
	 

- A-14 - 
 
	 
	(c)	Due Execution and Delivery – the Purchaser, on his, her or its own behalf and (if applicable) on behalf of others for whom the Purchaser is contracting hereunder, is responsible for obtaining such legal advice as the Purchaser considers necessary in connection with the execution, delivery and performance by the Purchaser of this Subscription Agreement and the transactions contemplated herein and the Purchaser represents and warrants that such execution, delivery and performance will not contravene any applicable laws of the jurisdiction in which the Purchaser is resident;
	 
	 
	 

	 
	(d)	Independent Tax Advice – the Purchaser, on his, her or its own behalf and (if applicable) on behalf of others for whom the Purchaser is contracting hereunder, is solely responsible for obtaining such advice concerning the tax consequences of the Purchaser’s investment in the Units and the Purchaser is not relying on the Company for advice concerning such tax consequences;
	 
	 
	 

	 
	(e)	Agents Purchasing for Principal(s) – if the Purchaser is contracting hereunder as agent for one or more other purchasers: (i) each such other purchaser is purchasing as principal for its own account and not for the benefit of any other person; and (ii) each of such principals can, and does, make the representations, warranties and covenants set out in Schedule “B”, Schedule “C”, and/or Schedule “D”, as applicable, to this Subscription Agreement as are applicable to such principal by virtue of its jurisdiction of residence or by virtue of being subject to the applicable securities legislation of such jurisdiction;
	 
	 
	 

	 
	(f)	Capacity – if the Purchaser, or any other purchaser for whom the Purchaser is contracting hereunder: (i) is an individual, the Purchaser, or such other purchaser as the case may be, has attained the age of majority and is legally competent to execute this Subscription Agreement and to perform all actions required pursuant hereto; or (ii) is a corporation, partnership, unincorporated association or other entity, the Purchaser, or such other purchaser, as the case may be, has the legal capacity and competence to enter into and be bound by this Subscription Agreement and the Purchaser further certifies that all necessary approvals of directors, shareholders or otherwise have been given and obtained;
	 
	 
	 

	 
	(g)	Authority – (i) if the Purchaser is contracting hereunder as agent for one or more other purchasers, the Purchaser is duly authorized to execute and deliver this Subscription Agreement and all other necessary documentation in connection with such subscription on behalf of each such principal and this Subscription Agreement has been duly authorized, executed and delivered by the Purchaser on behalf of each such principal; and (ii) the entering into of this Subscription Agreement and the completion of the transactions contemplated herein will not result in the violation of any of the terms and provisions of any law applicable to, or the constating documents of, the Purchaser or of any other purchaser for whom the Purchaser is contracting hereunder or of any agreement, written or oral, to which the Purchaser or any other purchaser for whom the Purchaser is contracting hereunder is a party or by which the Purchaser or such other purchasers are bound;

 
	 
	 
	
 
	 

- A-15 - 
 
	 
	(h)	Enforceability – this Subscription Agreement has been duly and validly authorized, executed and delivered by the Purchaser and, upon acceptance by the Company this Subscription Agreement will constitute a legal, valid and binding contract of the Purchaser, and (if applicable) the other purchasers for whom the Purchaser is contracting hereunder, enforceable against the Purchaser, and (if applicable) such other purchasers, in accordance with its terms;
	 
	 
	 

	 
	(i)	No Representation Re Resale, Refund, Future Price or Listing – no person has made any written or oral representation to the Purchaser:

 
	 
	(i)	that any person will resell or repurchase the Offered Securities or the Warrant Shares;
	 
	 
	 

	 
	(ii)	that any person will refund the purchase price of the Units or the Warrant Shares; or
	 
	 
	 

	 
	(iii)	relating to the future price or value of the Offered Securities or the Warrant Shares;

 
	 
	(j)	Investment Experience – the Purchaser, or (if applicable) all other purchasers for whom the Purchaser is contracting hereunder, have knowledge and experience with respect to investments of this type enabling the Purchaser, or (if applicable) such other purchasers, to evaluate the merits and risks thereof and the capacity to obtain competent independent business, legal and tax advice regarding this investment;
	 
	 
	 

	 
	(k)	Subscription Funds – none of the funds the Purchaser is using to purchase the Units are, to the knowledge of the Purchaser, proceeds obtained or derived, directly or indirectly, as a result of illegal activities. The funds the Purchaser is using to purchase the Units which will be advanced by the Purchaser to the Company hereunder will not represent proceeds of crime for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) (for the purposes of this paragraph the “PCMLTFA”) or the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (United States) (commonly referred to as the “USA PATRIOT Act”) or similar legislation and the Purchaser acknowledges that the Company may in the future be required by law to disclose the name of the Purchaser and other information relating to this Subscription Agreement and the subscription hereunder, on a confidential basis, pursuant to the PCMLTFA, USA Patriot Act or similar legislation. To the best of the Purchaser’s knowledge: (i) none of the subscription funds provided by the Purchaser: (1) have been or will be derived directly or indirectly from or related to any activity that is deemed criminal under the laws of Canada, the United States of America, or any other jurisdiction; or (2) are being tendered on behalf of a person or entity who has not been identified to the Company; and (ii) the Purchaser will promptly notify the Company if the Purchaser discovers that any of such representations cease to be true, and to provide the Company with appropriate information in connection therewith;

 
	 
	 
	
 
	 

- A-16 - 
 
	 
	(l)	Resale Restrictions - the Purchaser, and each beneficial purchaser, if any, for whom it is contracting hereunder, has been advised to consult their own legal advisors with respect to trading in the Offered Securities and the Warrant Shares and with respect to the resale restrictions imposed by the Applicable Securities Laws of the jurisdiction in which the Purchaser, or beneficial purchaser, if any, for whom it is contracting hereunder, resides and all other Applicable Securities Laws, and acknowledges that no representation has been made respecting the applicable hold periods imposed by the Applicable Securities Laws or other resale restrictions applicable to such securities which restrict the ability of the Purchaser, or beneficial purchaser, if any, for whom it is acting as trustee or agent, to resell such securities, that the Purchaser, or beneficial purchaser, if any, for whom it is contracting hereunder, is solely responsible to find out what these restrictions are and the Purchaser, or beneficial purchaser, if any, for whom it is contracting hereunder, is solely responsible (and the Company and the Agents are not in any way responsible) for compliance with applicable resale restrictions and the Purchaser is aware that it (or any beneficial purchaser for whom it is contracting hereunder) may not be able to resell such securities except in accordance with limited exemptions under the Applicable Securities Laws. The certificates evidencing the Securities may bear legends denoting such restrictions;
	 
	 
	 

	 
	(m)	Not an Insider - the purchase of the Purchaser’s Units hereunder is not a transaction in which any shareholder of the Company, or any beneficial owner of securities carrying more than 10% of the voting rights attaching to all outstanding voting securities of the Company, has a direct or indirect beneficial interest, unless the Purchaser has otherwise notified the Company and the Agents;
	 
	 
	 

	 
	(n)	No Finder’s Fees - other than the Agents, there is no person acting or purporting to act in connection with the transactions contemplated herein who is entitled to any brokerage or finder’s fee. If any person establishes a claim that any fee or other compensation is payable in connection with this subscription for the Purchaser’s Units, the Purchaser covenants to indemnify and hold harmless the Company and the Agents with respect thereto and with respect to all costs reasonably incurred in the defence thereof;
	 
	 
	 

	 
	(o)	Investment Purposes - the Purchaser, and each beneficial purchaser, if any, for whom the Purchaser is contracting hereunder, is purchasing the Units for investment purposes only and not with a view to resale or distribution that would or may contravene the prospectus or other requirements of Applicable Securities Laws;
	 
	 
	 

	 
	(p)	Knowledge of Material Fact or Change – the Purchaser, and each beneficial purchaser, if any, for whom it is contracting hereunder, has no knowledge of a material fact or material change in respect of the affairs of the Company that has not been generally disclosed to the public;
	 
	 
	 

	 
	(q)	Purchaser is a Non-U.S. Person - If the Purchaser is a non-U.S. Person:

  
	 
	(i)	it understands that the Company is the seller of the Offered Securities and that, for purposes of Regulation S, a “distributor” is any underwriter, dealer or other person who participates, pursuant to a contractual arrangement, in the distribution of securities offered or sold in reliance on Regulation S and that an “affiliate” is any partner, officer, director or any person directly or indirectly controlling, controlled by or under common control with any person in question; except as otherwise permitted by Regulation S, the Purchaser agrees that it will not, during a six-month distribution compliance period, act as a distributor, either directly or through any affiliate, or sell, transfer, hypothecate or otherwise convey the Offered Securities or the Warrant Shares other than to or for the account or benefit of a non-U.S. Person;

 
	 
	 
	
 
	 

- A-17 - 
 
	 
	(ii)	in the event the Offered Securities or the Warrant Shares are offered, sold or otherwise transferred by the Purchaser to or for the account or benefit of a non-U.S. person, unless pursuant to an effective registration statement under the U.S. Securities Act, prior to the expiration of a six-month distribution compliance period prescribed in Regulation S, the purchaser or transferee must agree not to resell such securities except in accordance with the provisions of Regulation S, pursuant to registration under the U.S. Securities Act, or pursuant to an available exemption from registration; and must further agree not to engage in hedging transactions with regard to such securities unless in compliance with the U.S. Securities Act;
	 
	 
	 

	 
	(iii)	it will not acquire the Offered Securities as a result of, and neither the Purchaser nor its affiliates will engage in, any “directed selling efforts” (as defined in Regulation S) in the United States in respect of the Offered Securities or the Warrant Shares which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Offered Securities or the Warrant Shares; and
	 
	 
	 

	 
	(iv)	at the time the buy order for the Offered Securities was originated, the Subscriber was outside the United States and this Subscription Agreement was not executed or delivered in the United States;

 
	 
	(r)	Insurance – There is no government or other insurance covering the Offered Securities.
	 
	 
	 

	 
	(s)	Personal Information - Federal - the Purchaser, on his, her or its own behalf and, if applicable, on behalf of each beneficial purchaser for whom the Purchaser is contracting hereunder, acknowledges and consents to the fact that the Company is collecting the Purchaser’s personal information (as that term is defined under applicable privacy legislation, including, without limitation, the Personal Information Protection and Electronic Documents Act (Canada) and any other applicable similar, replacement or supplemental provincial or federal legislation or laws in effect from time to time), and, if applicable, that of each beneficial purchaser for whom the Purchaser is contracting hereunder, for the purpose of completing this Subscription Agreement. The Purchaser, on his, her or its own behalf and, if applicable, on behalf of each beneficial purchaser for whom the Purchaser is contracting hereunder, acknowledges and consents to the Company retaining such personal information for as long as permitted or required by law or business practices. The Purchaser, on his, her or its own behalf and, if applicable, on behalf of each beneficial purchaser for whom the Purchaser is contracting hereunder, further acknowledges and consents to the fact that the Company may be required by the Applicable Securities Laws or the rules and policies of any stock exchange to provide regulatory authorities with any personal information provided under this Subscription Agreement. The Purchaser represents and warrants, as applicable, that he, she or it has the authority to provide the consents and acknowledgements set out in this paragraph on behalf of each beneficial purchaser for whom the Purchaser is contracting hereunder. In addition to the foregoing, the Purchaser agrees and acknowledges that the Company may use and disclose the Purchaser’s personal information, or that of each beneficial purchaser for whom the Purchaser is contracting hereunder, as follows:

  
	 
	(i)	for internal use with respect to managing the relationships between and contractual obligations of the Company and the Purchaser or any beneficial purchaser for whom the Purchaser is contracting hereunder;

  
	 
	 
	
 
	 

- A-18 - 
 
	 
	(ii)	for use and disclosure for income tax related purposes, including without limitation, where required by law, disclosure to Canada Revenue Agency;
	 
	 
	 

	 
	(iii)	for disclosure to securities regulatory authorities and other regulatory bodies with jurisdiction with respect to reports of trades and similar regulatory filings;
	 
	 
	 

	 
	(iv)	for disclosure to a governmental or other authority to which the disclosure is required by court order or subpoena compelling such disclosure and where there is no reasonable alternative to such disclosure;
	 
	 
	 

	 
	(v)	for disclosure to professional advisers of the Company in connection with the performance of their professional services;
	 
	 
	 

	 
	(vi)	for disclosure to any person where such disclosure is necessary for legitimate business reasons and is made with the Purchaser’s prior written consent;
	 
	 
	 

	 
	(vii)	for disclosure to a court determining the rights of the parties under this Subscription Agreement; or
	 
	 
	 

	 
	(viii)	for use and disclosure as otherwise required or permitted by law; and

 
	 
	(t)	Personal Information – Provincial - The information provided by the Purchaser on page 3 of this Subscription Agreement identifying the name, address and telephone number of the Purchaser, the number of Units being purchased hereunder and the total Subscription Price, as well as the Closing Date and the exemption that the Purchaser is relying on in purchasing the Units will be disclosed to the Securities Commission in the Province of residence for the Purchaser, and such information is being indirectly collected by such Securities Commission under the authority granted to it under Applicable Securities Laws. This information is being collected for the purposes of the administration and enforcement of the Applicable Securities Laws in such Provinces. Each Purchaser hereby authorizes the indirect collection of such information by such Securities Commission. In the event the Purchaser has any questions with respect to the indirect collection of such information by such securities regulators, the Purchaser should contact the relevant Securities Commission at:

   
	Alberta Securities Commission 
Suite 600, 250 – 5th Street SW
Calgary, Alberta T2P 0R4 
Telephone: (403) 297-6454 
Toll free in Canada: 1-877-355-0585
Facsimile: (403) 297-2082
 
British Columbia Securities Commission
P.O. Box 10142, Pacific Centre
701 West Georgia Street
Vancouver, British Columbia V7Y 1L2
Inquiries: (604) 899-6854
Toll free in Canada: 1-800-373-6393
Facsimile: (604) 899-6581
Email: inquiries@bcsc.bc.ca
 
The Manitoba Securities Commission
500 – 400 St. Mary Avenue
Winnipeg, Manitoba R3C 4K5
Telephone: (204) 945-2548
Toll free in Manitoba 1-800-655-5244
Facsimile: (204) 945-0330
	Government of Nunavut
Department of Justice
Legal Registries Division
P.O. Box 1000, Station 570
1st Floor, Brown Building
Iqaluit, Nunavut X0A 0H0
Telephone: (867) 975-6590
Facsimile: (867) 975-6594

	Ontario Securities Commission
20 Queen Street West, 22nd Floor
Toronto, Ontario M5H 3S8
Telephone: (416) 593- 8314
Toll free in Canada: 1-877-785-1555
Facsimile: (416) 593-8122
Email: exemptmarketfilings@osc.gov.on.ca
Public official contact regarding indirect collection of information: Inquiries Officer 
 

	Prince Edward Island Securities Office
95 Rochford Street, 4th Floor Shaw Building
P.O. Box 2000
Charlottetown, Prince Edward Island C1A 7N8
Telephone: (902) 368-4569
Facsimile: (902) 368-5283

  	 
	 
	
 
	 

- A-19 - 
 
	Financial and Consumer Services Commission (New Brunswick)
85 Charlotte Street, Suite 300
Saint John, New Brunswick E2L 2J2
Telephone: (506) 658-3060
Toll free in Canada: 1-866-933-2222
Facsimile: (506) 658-3059
Email: info@fcnb.ca
 
Government of Newfoundland and Labrador
Financial Services Regulation Division
P.O. Box 8700
Confederation Building
2nd Floor, West Block
Prince Philip Drive
St. John’s, Newfoundland and Labrador A1B 4J6
Attention: Director of Securities
Telephone: (709) 729-4189
Facsimile: (709) 729-6187
 
Government of the Northwest Territories
Office of the Superintendent of Securities
P.O. Box 1320
Yellowknife, Northwest Territories X1A 2L9
Attention: Deputy Superintendent, Legal & Enforcement
Telephone: (867) 920-8984
Facsimile: (867) 873-0243
 
Nova Scotia Securities Commission
Suite 400, 5251 Duke Street
Duke Tower
P.O. Box 458
Halifax, Nova Scotia B3J 2P8
Telephone: (902) 424-7768
Facsimile: (902) 424-4625
	Autorité des marchés financiers
800, Square Victoria, 22e étage
C.P. 246, Tour de la Bourse
Montréal, Québec H4Z 1G3
Telephone: (514) 395-0337 or 1-877-525-0337
Facsimile: (514) 873-6155 (For filing purposes only)
Facsimile: (514) 864-6381 (For privacy requests only)
Email: financementdessocietes@lautorite.qc.ca
(For corporate finance issuers); fonds_dinvestissement@lautorite.qc.ca
(For investment fund issuers)

	Financial and Consumer Affairs Authority of Saskatchewan
Suite 601 - 1919 Saskatchewan Drive
Regina, Saskatchewan S4P 4H2
Telephone: (306) 787-5879
Facsimile: (306) 787-5899

	Government of Yukon
Department of Community Services
Law Centre, 3rd Floor
2130 Second Avenue
Whitehorse, Yukon Y1A 5H6
Telephone: (867) 667-5314
Facsimile: (867) 393-6251

  The Purchaser acknowledges that the foregoing representations and warranties are made by the Purchaser with the intent that they may be relied upon by the Company and the Agents in determining the Purchaser’s eligibility, or (if applicable) the eligibility of others on whose behalf the Purchaser is contracting hereunder, to purchase the Units under relevant securities legislation and the Purchaser hereby agrees to indemnify the Company and the Agents against all losses, claims, costs, expenses and damages and other liabilities which the Company or the Agents may suffer or incur as the result of or arising from the reliance by the Company or the Agents on any such representation or warranty. Such representations, warranties and covenants will survive the Closing and continue in full force and effect for the benefit of the Company and the Agents in accordance with the terms of the Agency Agreement.
 
	12.	Representations, Warranties and Covenants of the Company

 
By accepting this Subscription Agreement, the Company agrees that the Purchaser will have the benefit of all the representations, warranties and covenants given by the Company in the Agency Agreement and further agrees that all such representations, warranties and covenants will be deemed to be incorporated herein as if they were reproduced in their entirety, with such changes as are necessary in order to reflect that such representations, warranties and covenants are being made by the Company to the Purchaser, to the extent that such representations, warranties and covenants are not amended or waived by the Agents, and such representations, warranties and covenants will survive the Closing and continue in full force and effect for the benefit of the Purchaser in accordance with the terms of the Agency Agreement.
 
	 
	 
	
 
	 

- A-20 - 
 
	13.	Governing Law

 
This Subscription Agreement will be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein, without regard to conflict of laws rules. The Purchaser, on his or her own behalf and (if applicable) on behalf of others for whom the Purchaser is contracting hereunder, hereby irrevocably attorn to the non-exclusive jurisdiction of the courts of the Province of British Columbia with respect to any matters arising out of this Subscription Agreement.
 
	14.	Assignment

 
This Subscription Agreement is not transferable or assignable, in whole or in part, by the Purchaser or (if applicable) by others on whose behalf the Purchaser is contracting hereunder.
 
	15.	Currency

 
All dollar amounts referred to in this Subscription Agreement and the Schedules thereto are expressed in Canadian funds unless otherwise specified.  
	16.	Enurement

 
This Subscription Agreement will be binding upon and enure to the benefit of the parties hereto and their respective successors and assigns.  
	17.	Entire Agreement and Headings

 
This Subscription Agreement (including the Schedules hereto) contains the entire agreement of the parties hereto relating to the subject matter hereof and there are no representations, covenants or other agreements relating to the subject matter hereof except as stated or referred to herein. This Subscription Agreement may be amended or modified in any respect by written instrument only. The headings contained herein are for convenience only and will not affect the meanings or interpretation hereof.  
	18.	Time of Essence

 
Time will be of the essence of this Subscription Agreement.  
	19.	Counterparts and Facsimile Deliveries

 
This Subscription Agreement may be executed in one or more counterparts, each of which counterparts when executed will constitute an original and all of which counterparts so executed will constitute one and the same instrument. The Company and the Agents will be entitled to rely on delivery of an electronic or facsimile copy of this Subscription Agreement, including the completed Schedules attached hereto, and acceptance by the Company and the Agents of any such electronic or facsimile copy will be legally effective to create a valid and binding agreement between the parties hereto in accordance with the terms hereof.  
	 
	 
	
 
	 

- B-1 -
 
SCHEDULE “B”
 
ACCREDITED INVESTOR EXEMPTION CERTIFICATE
 
This is Schedule “B” to the Subscription Agreement relating to the purchase Units of Body and Mind Inc. (the “Company”). Capitalized terms used but not defined in this schedule are intended to have the meanings given thereto, as applicable, in the Subscription Agreement. 
 
	TO:
	BODY AND MIND INC. 

	 
	 

	AND TO:
	M PARTNERS INC. (the “Lead Agent”) and PI FINANCIAL CORP. (together with the Lead Agent, the “Agents”)

 
Reference is made to the Subscription Agreement between the Company and the undersigned (referred to herein as the “Purchaser”) dated as of the date hereof (the “Subscription Agreement”). Upon execution of this certificate (the “Purchaser Certificate”) by the Purchaser, this Purchaser Certificate will be incorporated into and form a part of the Subscription Agreement.
 
Terms not otherwise defined herein or in the Subscription Agreement have the meanings attributed to them in National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”) promulgated under Applicable Securities Laws. All monetary references are in Canadian dollars.
 
In connection with the purchase of the Units of the Company by the Purchaser, the Purchaser represents, warrants and covenants (on its own behalf and, if applicable, on behalf of those for whom the Purchaser is contracting under the Subscription Agreement) and certifies to the Company and the Agents and acknowledges that the Company and the Agents are relying thereon that:
 
General 
 
	A.	one of the following clauses (i), (ii) or (iii) applies:

 
	 
	(i)	the Purchaser is resident in or otherwise subject to the laws of the jurisdiction set out as the “Purchaser’s Residential Address” on page 3 of the Subscription Agreement and is purchasing as principal for its own account and not for the benefit of any other person;
	 
	 
	 

	 
	(ii)	the Purchaser is contracting hereunder on behalf of a Disclosed Principal and such Disclosed Principal is resident in or otherwise subject to the laws of the jurisdiction set out as the “Disclosed Principal’s Residential Address” on page 3 of the Subscription Agreement and is purchasing as principal for its own account and not for the benefit of any other person; or
	 
	 
	 

	 
	(iii)	the Purchaser is deemed to be purchasing as principal pursuant to NI 45-106 with respect to a purchase of the Units, by virtue of the fact that it is a trust company or trust corporation described in clause (p) of the definition of “accredited investor” in Section B below and is not a trust company or trust corporation registered under the laws of Prince Edward Island that is not registered or authorized under the Trust and Loan Companies Act (Canada) or under comparable legislation in another jurisdiction of Canada, or by virtue of the fact that it is a person or company described in item (q) of the definition of “accredited investor” in Section B below; and

  
	 
	 
	
 
	 

- B-2 -
 
Prospectus Exemptions
 
	B.	the Purchaser or the Disclosed Principal, as applicable, is, as of the date hereof, and will be, as of the Closing Date, an “accredited investor”, as such term is defined in NI 45-106, by virtue of the fact that the Purchaser or the Disclosed Principal, as applicable, falls within one or more of the following categories checked below. A Purchaser checking boxes (j), (j.1), (k) or (l) must also complete and sign Appendix A to this Schedule “B” (Form 45-106F9 - Form for Individual Accredited Investors).

  
	(a) 
	a Canadian financial institution, or a Schedule III bank;
	o 

	 
		 

	(b)
	the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada);
	o 

	 
		 

	(c)
	a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary;
	o 

	 
		 

	(d)
	a person registered under the securities legislation of a jurisdiction of Canada as an adviser or a dealer;
	o 

	 
		 

	(e)
	an individual registered or formerly registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d);
	o 

	 
		 

	(e.1)
	 an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador);
	o 

	 
		 

	(f)
	the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada;
	o 

	 
		 

	(g) 
	a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;
	o 

	 
		 

	(h)
	any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government;
	o 

 
	 
	 
	
 
	 

- B-3 -
 
	(I)
	a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada), a pension commission or similar regulatory authority of a jurisdiction of Canada;
	o 

	 
		 

	(j)
	an individual who, either alone or with a spouse, beneficially owns financial assets having an aggregate realizable value that before taxes, but net of any related liabilities, exceeds $1,000,000;
	o 

	 
		 

	(j.1)
	an individual who beneficially owns financial assets having an aggregate realizable value that, before taxes but net of any related liabilities, exceeds $5,000,000;
	o 

	 
		 

	(k)
	an individual whose net income before taxes exceeded $200,000 in each of the two most recent calendar years or whose net income before taxes combined with that of a spouse exceeded $300,000 in each of the two most recent calendar years and who, in either case, reasonably expects to exceed that net income level in the current calendar year;
	o 

	 
		 

	(l)
	an individual who, either alone or with a spouse, has net assets of at least $5,000,000;
	o 

	 
		 

	(m)
	a person, other than an individual or an investment fund, that has net assets of at least $5,000,000 as shown on its most recently prepared financial statements;
	o 

	 
		 

	(n)
	an investment fund that distributes or has distributed its securities only to:
 
(i) a person that is or was an accredited investor at the time of the distribution;
 
(ii) a person that acquires or acquired securities in the circumstances referred to in sections 2.10 (Minimum amount investment), or 2.19 (Additional investment in investment funds) of NI 45-106; or
 
(iii) a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 (Investment fund reinvestment) of NI 45-106;
	 
o 

	 
		 

	(o)
	an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt;
	o 

  	 
	 
	
 
	 

- B-4 -
 
	(p)
	a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be;
	o 

	 
		 

	(q)
	a person acting on behalf of a fully managed account managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction;
	o 

	 
		 

	(r)
	a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded;
	o 

	 
		 

	(s)
	an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function;
	o 

	 
		 

	(t)
	a person in respect of which all of the owners of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons that are accredited investors;
	o 

	 
		 

	(u)
	an investment fund that is advised by a person registered as an adviser or a person that is exempt from registration as an adviser; 
	o 

	 
		 

	(v)
	a person that is recognized or designated by the securities regulatory authority or, except in Ontario and Québec, the regulator as an accredited investor; or
	o 

	 
		 

	(w)
	a trust established by an accredited investor for the benefit of the accredited investor’s family members of which a majority of the trustees are accredited investors and all of the beneficiaries are the accredited investor’s spouse, a former spouse of the accredited investor or a parent, grandparent, brother, sister, child or grandchild of that accredited investor, of that accredited investor’s spouse or of that accredited investor’s former spouse.
	o 

 
	 
	 
	
 
	 

- B-5 -
 
The foregoing representations are true and accurate as of the date of this certificate and will be true and accurate as of the Closing Date. If any such representation will not be true and accurate prior to the Closing Date, the undersigned will give immediate written notice of such fact to the Company.  
	Dated: ____________________, 2019
	 
	_________________________________________ 
Name of Purchaser

	 
_________________________________________ 
Name of witness (if the Purchaser is an individual)
		 
_________________________________________ 
Signature of Purchaser

	 
_________________________________________ 
Signature of witness
	 
	 
_________________________________________ 
If the Purchaser is a corporation, print name and title of Authorized Signing Officer

 
	 
	 
	
 
	 

- B-6 -
 
APPENDIX A TO SCHEDULE “B”
 
Form 45-106F9
 
Form for Individual Accredited Investors
 
	WARNING!
 
This investment is risky. Don’t invest unless you can afford to lose all the money you pay for this investment.

 
	SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER

	1. About your investment

	Type of securities: Unit consisting of one Common Share and one Warrant
	Issuer: Body and Mind Inc.

	Purchased from: Issuer
[Instruction: Indicate whether securities are purchased from the issuer or a selling security holder.]

	SECTIONS 2 TO 4 TO BE COMPLETED BY THE PURCHASER

	2. Risk acknowledgement

	This investment is risky. Initial that you understand that:
	Initials

	Risk of loss – You could lose your entire investment of $ ______________.
[Instruction: Insert the total dollar amount of the investment.]
	 

	Liquidity risk – You may not be able to sell your investment quickly – or at all.
	 

	Lack of information – You may receive little or no information about your investment.
	 

	Lack of advice – You will not receive advice from the salesperson about whether this investment is suitable for you unless the salesperson is registered. The salesperson is the person who meets with, or provides information to, you about making this investment. To check whether the salesperson is registered, go to www.aretheyregistered.ca.
	 

	3. Accredited investor status

	You must meet at least one of the following criteria to be able to make this investment. Initial the statement that applies to you. (You may initial more than one statement.) The person identified in section 6 is responsible for ensuring that you meet the definition of accredited investor. That person, or the salesperson identified in section 5, can help you if you have questions about whether you meet these criteria.
	Initials

	· Your net income before taxes was more than $200,000 in each of the 2 most recent calendar years, and you expect it to be more than $200,000 in the current calendar year. (You can find your net income before taxes on your personal income tax return.)
	 

 
	 
	 
	
 
	 

- B-7 -
 
	· Your net income before taxes combined with your spouse’s was more than $300,000 in each of the 2 most recent calendar years, and you expect your combined net income before taxes to be more than $300,000 in the current calendar year.
	 

	· Either alone or with your spouse, you own more than $1 million in cash and securities, after subtracting any debt related to the cash and securities.
	 

	· Either alone or with your spouse, you have net assets worth more than $5 million. (Your net assets are your total assets (including real estate) minus your total debt.)
	 

	4. Your name and signature

	By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form.

	First and last name (please print):

	Signature:
	Date:

	SECTION 5 TO BE COMPLETED BY THE SALESPERSON

	5. Salesperson information

	[Instruction: The salesperson is the person who meets with, or provides information to, the purchaser with respect to making this investment. That could include a representative of the issuer or selling security holder, a registrant or a person who is exempt from the registration requirement.]

	First and last name of salesperson (please print):

	Telephone:
	Email:

	Name of firm (if registered):

	SECTION 6 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER

	6. For more information about this investment

	 
Body and Mind Inc.
1095 West Pender Street 
Vancouver, BC V6E 2M6
Attention: Leonard Clough, CEO
 
For more information about prospectus exemptions, contact your local securities regulator. You can find contact information at www.securities-administrators.ca.
 

 
The Purchaser must complete and sign this form. The Company and the Agents must receive a copy of this form signed by the Purchaser. The Company is required to keep a signed copy of this form for 8 years after the distribution. 
 
	 
	 
	
 
	 

- C-1 -
 
SCHEDULE “C”
U.S. ACCREDITED INVESTOR CERTIFICATE
 
This is Schedule “C” to the Subscription Agreement relating to the purchase Units of Body and Mind Inc. (the “Company”). Capitalized terms used but not defined in this schedule are intended to have the meanings given thereto, as applicable, in the Subscription Agreement. 
 
	TO:
	BODY AND MIND INC. 

	AND TO:
	M PARTNERS INC. (the “Lead Agent”) and PI FINANCIAL CORP. (together with the Lead Agent, the “Agents”)

 
Reference is made to the Subscription Agreement between the Company and the undersigned (referred to herein as the “Purchaser”) dated as of the date hereof (the “Subscription Agreement”). Upon execution of this certificate (the “Purchaser Certificate”) by the Purchaser, this Purchaser Certificate will be incorporated into and form a part of the Subscription Agreement.
 
All monetary references are in U.S. dollars.
 
In addition to the covenants, representations and warranties contained in the Subscription Agreement, the undersigned Purchaser covenants, represents and warrants to the Company and to the Agents that the Purchaser (on its own behalf and, if applicable, on behalf of each beneficial purchaser for whom the Purchaser is contacting hereunder):
 
	(a)	(i) is a “U.S. Person” as defined in Rule 902(k) of Regulation S under the United States Securities Act of 1933, as amended (the “1933 Act”) and which, without limiting the foregoing, includes a natural person resident in the United States, a partnership, limited liability company, or corporation organized or incorporated under the laws of the United States, an estate of which any executor or administrator is a U.S. Person, a trust of which any trustee is a U.S. Person, a non-discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit of a U.S. Person, a discretionary account or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or (if an individual) resident in the United States, and a partnership or corporation if (A) organized or incorporated under the laws of any foreign jurisdiction, and (B) formed by a U.S. Person principally for the purpose of investing in securities not registered under the 1933 Act, unless it is organized or incorporated, and owned, by “accredited investors” under Rule 501(a) of Regulation D under the 1933 Act (“Regulation D”) who are not natural persons, estates or trusts; or (ii) is not a U.S. Person but was offered the Units, or executed or delivered the Subscription Agreement, in the United States (which, for the purposes of this Schedule means the United States of America, its territories and possessions and the District of Columbia)); or (iii) is purchasing the Units for the account of or benefit of a U.S. Person or a person in the United States, or is otherwise subject to the securities laws of the United States;
	 
	 

	(b)	has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of the investment and it is able to bear the economic risk of loss of the investment;
	 
	 

	(c)	is purchasing the Securities for its own account or for the account of one or more beneficial purchasers for whom it is exercising sole investment discretion, for investment only and not with a view to resale or distribution and in particular, neither it nor any beneficial purchaser for whose account it is purchasing the Units has any intention to distribute either directly or indirectly any of the Securities in the United States or to U.S. Persons unless such Securities are registered under the 1933 Act and any applicable state securities laws, including, without limitation, any regulation under the 1933 Act, or in reliance on and pursuant to an exemption from such requirements;

 
	 
	 
	
 
	 

- C-2 -
 
	(d)	the Purchaser acknowledges that (i) the Company has not undertaken, and will have no obligation, to register any of Securities under the 1933 Act or any applicable state securities laws, (ii) the Securities may not be offered or sold, directly or indirectly, in the United States or to, or for the account or benefit of, a U.S. Person or person in the United States except pursuant to registration under the 1933 Act and the securities laws of all applicable states or available exemptions therefrom, and (iii) the Company has present intention of filing a registration statement under the 1933 Act or the securities laws of any applicable states in respect of any of the Securities;
	 
	 

	(d)	the purchase and sale contemplated hereby is being made in reliance on an exemption from registration under Rule 506(b) of Regulation D based in part upon the Purchaser’s representations contained herein, including without limitation that the Purchaser is an “accredited investor” meeting one or more of the criteria in Rule 501(a) of Regulation D;
	 
	 

	(e)	satisfies one or more of the following categories of “accredited investor” (please write “SUB” for the undersigned Purchaser, and “BP” for each beneficial purchaser, if any, on each line that applies):

  	 
	_______ Category 1.
	A bank, as defined in Section 3(a)(2) of the 1933 Act, whether acting in its individual or fiduciary capacity; a savings and loan association or other institution as defined in Section 3(a)(5)(A) of the 1933 Act, whether acting in its individual or fiduciary capacity; a broker or dealer registered pursuant to Section 15 of the United States Securities Exchange Act of 1934, as amended; an insurance company as defined in Section 2(a)(13) of the 1933 Act; an investment company registered under the United States Investment Company Act of 1940; a business development company as defined in Section 2(a)(48) of the United States Investment Company Act of 1940; a small business investment company licensed by the U.S. Small Business Administration under Section 301 (c) or (d) of the United States Small Business Investment Act of 1958; a plan established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, with total assets in excess of U.S.$5,000,000; or an employee benefit plan within the meaning of the United States Employee Retirement Income Security Act of 1974 in which the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company or registered investment adviser, or an employee benefit plan with total assets in excess of U.S.$5,000,000 or, if a self-directed plan, with investment decisions made solely by persons who are “accredited investors” (as such term is defined in Rule 501 under the 1933 Act); or 

	 
	 
	 

	 
	_______ Category 2.
	A private business development company as defined in Section 202(a)(22) of the United States Investment Advisers Act of 1940; or;

	 
	 
	 

	 
	_______ Category 3. 
	An organization described in Section 501(c)(3) of the United States Internal Revenue Code of 1986, as amended, a corporation, a Massachusetts or similar business trust, a partnership or a limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of U.S.$5,000,000; or;

	 
	 
	 

	 
	_______ Category 4.
	Any director or executive officer of the Company; or

 
	 
	 
	
 
	 

- C-3 -
 
	 
	_______ Category 5.
	Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his or her purchase exceeds US$1,000,000 (note: for the purposes of calculating net worth: (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of the sale and purchase of securities contemplated hereby, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of the sale and purchase of securities contemplated hereby exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability); or

	 
	 
	 

	 
	_______ Category 6.
	A natural person who had an individual income in excess of U.S.$200,000 in each of the two most recent years or joint income with that person’s spouse in excess of U.S.$300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; or

	 
	 
	 

	 
	_______ Category 7. 
	A trust, with total assets in excess of U.S.$5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) under the 1933 Act.

	 
	 
	 

	 
	_______ Category 8. 
	Any entity in which each of the equity owners meets the requirements of one or more of the above categories – if this alternative is selected you must identify each equity owner and provide statements from each demonstrating how they qualify as an accredited investor.

  
	(f)	acknowledges that the Purchaser has not purchased the Units as a result of any form of “general solicitation” or “general advertising” (as such terms are defined in Regulation D under the 1933 Act) including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media (including any press release of the Corporation) or broadcast over the Internet, radio, or television, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising;
	 
	 

	(g)	understands that the Securities will not be registered under the 1933 Act and are “restricted securities” as that term is defined in Rule 144(a)(3) of the 1933 Act and agrees that if the Purchaser decides to offer, sell or otherwise transfer any of the Securities, the Purchaser will not offer, sell or otherwise transfer any of such Securities directly or indirectly, unless:

 
	 
	(A)	the sale is to the Company;
	 
	 
	 

	 
	(B)	the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the 1933 Act and in compliance with applicable local laws and regulations;
	 
	 
	 

	 
	(C)	the sale is made pursuant to the exemption from the registration requirements under the 1933 Act provided by Rule 144 thereunder, if available, and in compliance with any applicable state securities laws; or
	 
	 
	 

	 
	(D)	the Securities are sold in a transaction that does not require registration under the 1933 Act or any applicable state laws and regulations governing the offer and sale of securities, and the Purchaser has prior to such sale furnished to the Company an opinion of counsel reasonably satisfactory to the Company, stating that such sale, transfer, assignment or hypothecation is exempt from the registration and prospectus delivery requirements of the 1933 Act and any applicable state securities laws;

 
	 
	 
	
 
	 

- C-4 -
 
	(h)	acknowledges that it has not purchased the Units as a result of, and will not itself engage in, any “directed selling efforts” (as defined in Regulation S under the 1933 Act) in the United States in respect of the Securities which would include any activities undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the resale of the Securities; 
	 
	 

	(i)	understands and acknowledges that any certificates representing any Securities sold in the United States, and all certificates issued in exchange for or in substitution of such certificates will bear the following legends upon the original issuance of any such Securities and until the legend is no longer required under applicable requirements of the 1933 Act or applicable state securities laws:

  
	 
	(i)	the certificates representing the Offered Securities, and the certificates representing the Warrant Shares if issued prior to four months after the Closing Date, will bear a legend in substantially the following form:
	 
	 
	 

	 
		“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [INSERT THE DATE THAT IS 4 MONTHS AND A DAY AFTER THE DISTRIBUTION DATE].”;
	 
	 
	 

	 
	(ii)	the certificates representing the Offered Securities, and the certificates representing the Warrant Shares will be required to be stamped with the following legend (or substantially equivalent language):
	 
	 
	 

	 
		“THE SECURITIES REPRESENTED BY THIS CERTIFICATE [for warrants add: AND THE SECURITIES ISSUABLE HEREUNDER] HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”; and
	 
	 
	 

	 
	(iii)	the certificates representing the Warrants will also bear a legend in substantially the following form:
	 
	 
	 

	 
		“THIS WARRANT MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF, OR FOR THE ACCOUNT OR BENEFIT OF, A U.S. PERSON OR A PERSON IN THE UNITED STATES UNLESS THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.”
	 
	 
	 

	 
	provided, however, in (ii) immediately above, if any Securities are being sold, the legend may be removed by delivery to the registrar and transfer agent and the Company of an opinion of counsel, of recognized standing reasonably satisfactory to the Company, that such legend is no longer required under applicable requirements of the 1933 Act or state securities laws.

 
	 
	 
	
 
	 

- C-5 -
 
	(j)	it understands that the Warrants may not be exercised in the United States or by, or on behalf of, a U.S. Person or a person in the United States unless exemptions are available from the registration requirements of the 1933 Act and the securities laws of all applicable states, and the holder has furnished an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Company to such effect; provided that a holder of Warrants (a “Warrantholder”), as the case may be, will not be required to deliver an opinion of counsel in connection with its due exercise of the Warrants, for its own account or for the account of the original beneficial purchaser, if any, at a time when the Warrantholder and such original beneficial purchaser thereof, if any, are “accredited investors” meeting one or more of the criteria in Rule 501(a) of Regulation D;
	 
	 

	(k)	consents to the Company making a notation on its records or giving instruction to the registrar and transfer agent of the Company in order to implement the restrictions on transfer set forth and described herein;
	 
	 

	(l)	the office or residence of the Purchaser at which the Purchaser received and accepted the offer to purchase the Units is the address set out in the “Purchaser’s Address” on page 3 of the Subscription Agreement; 
	 
	 

	(m)	has relied solely upon its own independent investigation in making a decision to purchase the Units and acknowledges that the Units are speculative investments which involve a substantial degree of risk with no assurance of any income from such investments and the possibility that such may become worthless;
	 
	 

	(n)	certifies that the Purchaser has received or has had full access to all the information the Purchaser considers necessary or appropriate to make an informed investment decision with respect to the Units; 
	 
	 

	(o)	certifies that the Purchaser has had an opportunity to ask questions and receive answers from the Company regarding the Company’s business, management and financial affairs and the terms and conditions of the offer, sale and issuance of the Offered Securities and to obtain additional information (to the extent the Company possessed such information or could acquire it without unreasonable effort or expense) necessary to verify any information furnished to the Purchaser or to which the Purchaser had access;
	 
	 

	(p)	certifies that the offer, sale and issuance of the Securities is not a transaction, or part of a chain of transactions which, although in technical compliance with Regulation D, is part of a plan or scheme to evade the registration requirements of the 1933 Act;
	 
	 

	(q)	certifies that, if the Purchaser is an entity or organization, the Purchaser was not formed for the specific purpose of acquiring the Units;

 
	 
	 
	
 
	 

- C-6 -
 
	(r)	(i) the funds representing the aggregate purchase price which will be advanced by the Purchaser for the subscription for the Units in the Offering will not represent proceeds of crime for the purposes of the United States Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”), and the Purchaser acknowledges that the Company, the Agents and/or any of their respective affiliates in the United States may in the future be required by law to disclose the Purchaser’s name and other information relating to the Subscription Agreement and the undersigned’s subscription hereunder, on a confidential basis, pursuant to the PATRIOT Act, and (b) no portion of the aggregate purchase price to be provided by the Purchaser (i) has been or will be derived from or related to any activity that is deemed criminal under the laws of the United States of America, or any other jurisdiction, or (ii) is being tendered on behalf of a person or entity that has not been identified to or by the Purchaser; and the Purchaser shall promptly notify the Agents, the Company and their respective affiliates in the United States if the Purchaser discovers that any of such representations ceases to be true and provide the Agents, the Company and any of their respective affiliates in the United States with appropriate information in connection therewith;
	 
	 

	(s)	it acknowledges and understands that no agency, governmental authority, regulatory body, stock exchange or other entity (including, without limitation, the United States Securities and Exchange Commission or any state securities commission) has made any finding or determination as to the merit of investment in, nor have any such agencies or governmental authorities made any recommendation or endorsement with respect to, any of the Units; and
	 
	 

	(t)	understands and agrees that there may be material tax consequences to the Purchaser of an acquisition, disposition or exercise of any of the Securities; the Company gives no opinion and makes no representation with respect to the tax consequences to the Purchaser under United States, state, local or foreign tax law of the Purchaser’s acquisition or disposition of such Securities; in particular, no determination has been made whether the Company will be a “passive foreign investment company” within the meaning of Section 1297 of the United States Internal Revenue Code.

 
	 
	 
	
 
	 

- C-7 -
 
The foregoing representations are true and accurate as of the date of this certificate and will be true and accurate as of the Closing Date. If any such representation will not be true and accurate prior to the Closing Date, the undersigned will give immediate written notice of such fact to the Company.
 
	Dated: ____________________, 2019
	 
	_________________________________________ 
Name of Purchaser

	 
_________________________________________ 
Name of witness (if the Purchaser is an individual)
		 
_________________________________________ 
Signature of Purchaser

	 
_________________________________________ 
Signature of witness
	 
	 
_________________________________________ 
If the Purchaser is a corporation, print name and title of Authorized Signing Officer

 
	 
	 
	
 
	 

- D-1 -
 
SCHEDULE “D” 
OFFSHORE PURCHASER CERTIFICATE
 
This is Schedule “D” to the Subscription Agreement relating to the purchase of the Units of Body and Mind Inc. (the “Company”). Capitalized terms used but not defined in this schedule are intended to have the meanings given thereto, as applicable, in the Subscription Agreement.
 
	TO:
	BODY AND MIND INC. (the “Company”)

	AND TO:
	M PARTNERS INC. (the “Lead Agent”) and PI FINANCIAL CORP. (together with the Lead Agent, the “Agents”)

 
The Purchaser hereby represents, warrants and certifies (by completing and signing this certificate below) on its own behalf or, if applicable on behalf of those for whom the Purchaser is contracting hereunder, to the Company and the Agents (which representations, warranties and certifications will survive the closing of the purchase of the Units by the Purchaser pursuant to the Subscription Agreement) and acknowledges that the Company and the Agents are relying thereon that:
 
	 
	(a)	The Purchaser is: (i) purchasing the securities as principal for its own account and not for the benefit of any other person, and it is purchasing for investment only and not with a view to resale or distribution and no other person, corporation, firm or other organization has a beneficial interest in the said securities being purchased; or (ii) purchasing the securities as agent or trustee for the principal disclosed on page 3 of this Subscription Agreement and not for the benefit of any other person, and is purchasing for investment only and not for a view to resale or distribution;
	 
	 
	 

	 
	(b)	The Purchaser is located outside of Canada and the United States and is not a “U.S. Person” as defined in Rule 902(k) of Regulation S under the United States Securities Act of 1933, as amended;
	 
	 
	 

	 
	(c)	The subscription by the Purchaser does not contravene any of the applicable securities legislation in the jurisdiction in which the Purchaser resides and does not give rise to: (i) any obligation of the Company to prepare and file a prospectus or similar document or to register the Offered Securities or the Warrant Shares, or to be registered with, any obligation to file a report or notice with any governmental or regulatory authority; or (ii) any continuous disclosure reporting obligation of the Company in the International Jurisdiction (as defined in the Subscription Agreement);
	 
	 
	 

	 
	(d)	the Purchaser is purchasing the Units pursuant to exemptions from any prospectus, registration or similar requirements under the laws of that International Jurisdiction or, if such is not applicable, the Purchaser is permitted to purchase the Units without the need to comply with any substantive or procedural requirements or any kind whatsoever in the Purchaser’s jurisdiction of residence; and
	 
	 
	 

	 
	(e)	the Purchaser will, if requested by the Company, deliver to the Company a certificate or opinion of local counsel from the Purchaser’s jurisdiction of residence confirming the matters referred to in subparagraph (d) above to the satisfaction of the Company, acting reasonably.

 
[The remainder of this page intentionally left blank. Signature page follows.]
 
	 
	 
	
 
	 

- D-2 -
 
IN WITNESS WHEREOF, the undersigned has executed this certificate as of the _____ day of ____________________, 2019.
 
	If a Company, Partnership or Other Entity
	 
	If an Individual:

	 		 

	Name of Entity 
	 
	Signature

	 		 

	Type of Entity
	 
	Print or Type Name

	 		 

	Signature of Person Signing
		
	 		 

	Print or Type Name and Title of Person Signingbmmj_ex103.htm

EXHIBIT 10.3
 
- 1 -
 
THE SECURITIES REPRESENTED BY THIS CERTIFICATE AND THE SECURITIES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT.
 
UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE SEPTEMBER 18, 2019.
 
THESE WARRANTS MAY NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A PERSON IN THE UNITED STATES OR A U.S. PERSON UNLESS THESE WARRANTS AND THE SECURITIES DELIVERABLE UPON EXERCISE OF THESE WARRANTS HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY SUCH STATE OR AN EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS IS AVAILABLE. “UNITED STATES” AND “U.S. PERSON” ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES ACT.
 
THE WARRANTS REPRESENTED HEREBY WILL BE VOID AND OF NO VALUE AFTER 5:00 PM (PACIFIC TIME) ON MAY 17, 2023.
 
BODY AND MIND INC. 
(a Nevada Corporation)
 
WARRANT CERTIFICATE
 
WARRANT TO PURCHASE COMMON SHARES
 
	Warrant Certificate Number: 2019-05-u
	Number of Warrants: u

 
THIS IS TO CERTIFY THAT for value received, [insert name of investor], of [insert address of investor] (the “Warrantholder”) has the right to purchase in respect of each warrant (the “Warrants”) represented by this certificate or by a replacement certificate (in either case this “Warrant Certificate”), at any time up to 5:00 p.m. (Pacific time) on May 17, 2023 (the “Expiry Time”) one fully paid and non-assessable common share (the “Common Shares”) of Body and Mind Inc. (the “Corporation”), a corporation incorporated under the laws of the State of Nevada, as constituted on the date hereof, at an exercise purchase price (the purchase price in effect from time to time being called the “Exercise Price”) of CAD$1.50 per Common Share if exercised on or before May 17, 2023, subject to adjustment as provided herein.
  	 
	 
	
 
	 

- 2 -
 
The Corporation agrees that the Common Shares purchased pursuant to the exercise of the Warrants shall be and be deemed to be issued to the Warrantholder as of the close of business on the date on which this Warrant Certificate shall have been surrendered and payment made for such Common Shares as aforesaid.
 
Nothing contained herein shall confer any right upon the Warrantholder to subscribe for or purchase any Common Shares at any time after the Expiry Time and from and after the Expiry Time the Warrants and all rights under this Warrant Certificate shall be void and of no value.
 
The above provisions are subject to the following: 
 
1. Exercise
 
1.1 In the event that the Warrantholder desires to exercise the right to purchase Common Shares conferred hereby, the Warrantholder shall (a) surrender this Warrant Certificate to the Corporation in accordance with section 9 hereof, (b) complete and execute a subscription form in the form attached as Schedule A to this Warrant Certificate, and (c) pay the amount payable on the exercise of this Warrant in respect of the Common Shares subscribed for either by bank draft or cheque payable to the Corporation. Upon such surrender and payment as aforesaid, the Warrantholder shall be deemed for all purposes to be the holder of record of the number of Common Shares to be so issued and the Warrantholder shall be entitled to delivery of a certificate or certificates representing such Common Shares and the Corporation shall cause such certificate or certificates to be delivered to the Warrantholder at the address specified in the subscription form within five business days after such surrender and payment as aforesaid. No fractional Common Shares will be issuable upon any exercise of this Warrant and the Warrantholder will not be entitled to any cash payment or compensation in lieu of a fractional Common Share.
 
2. Partial Exercise
 
2.1 The Warrantholder may from time to time subscribe for and purchase any lesser number of Common Shares than the number of Common Shares expressed in this Warrant Certificate. In the event that the Warrantholder subscribes for and purchases any such lesser number of Common Shares prior to the Expiry Time, the Warrantholder shall be entitled to receive a replacement certificate representing the unexercised balance of the Warrants.
 
3. Not a Shareholder
 
3.1 The holding of the Warrants shall not constitute the Warrantholder a shareholder of the Corporation nor entitle the Warrantholder to any right or interest in respect thereof except as expressly provided in this Warrant Certificate.
 
4. Covenants and Representations
 
4.1 The Corporation hereby represents and warrants that it is authorized to issue and that it will cause the Common Shares from time to time subscribed for and purchased in the manner provided in this Warrant Certificate and the certificate representing such Common Shares to be issued and that, at all times prior to the Expiry Time, it will reserve and there will remain unissued a sufficient number of Common Shares to satisfy the right of purchase provided in this Warrant Certificate. All Common Shares which are issued upon the exercise of the right of purchase provided in this Warrant Certificate, upon payment therefor of the amount at which such Common Shares may be purchased pursuant to the provisions of this Warrant Certificate, shall be and be deemed to be fully paid and non-assessable shares and free from all taxes, liens and charges with respect to the issue thereof. The Corporation hereby represents and warrants that this Warrant Certificate is a valid and enforceable obligation of the Corporation, enforceable in accordance with the provisions of this Warrant Certificate. The Corporation hereby represents and warrants that it will at all times prior to the Expiry Time of any Warrants hereunder maintain its existence, will carry on and conduct its business in a prudent manner in accordance with industry standards and good business practice, and will keep or cause to be kept proper books of account in accordance with applicable law.
  	 
	 
	
 
	 

- 3 -
 
5. Anti-Dilution Protection:
 
5.1 Definitions: For the purposes of this section 5, unless there is something in the subject matter or context inconsistent therewith, the words and terms defined below shall have the respective meanings specified therefor in this subsection 5.1:
 
	 
	(a)	“Adjustment Period” means the period commencing on May 17, 2019 and ending at the Expiry Time;
	 
	 
	 

	 
	(b)	“Current Market Price” of the Corporation’s Common Shares at any date means, if the Common Shares are traded on a stock exchange or in the over-the-counter market, the price per share equal to the weighted average price at which the Common Shares have traded in the over-the-counter market, during the period of any 20 consecutive trading days ending not more than five business days before such date; provided that the weighted average price shall be determined by dividing the aggregate sale price of all Common Shares sold on the said exchange or market, as the case may be, during such 20 consecutive trading days by the total number of Common Shares so sold; and provided further that if the Common Shares are not then traded on a stock exchange or in the over-the-counter market, then the Current Market Price shall be determined by such firm of independent chartered accountants as may be selected by the directors of the Corporation;
	 
	 
	 

	 
	(c)	“director” means a director of the Corporation for the time being and, unless otherwise specified herein, a reference to action “by the directors” means action by the directors of the Corporation as a board or, whenever empowered, action by any committee of the directors of the Corporation; and
	 
	 
	 

	 
	(d)	“trading day” with respect to a stock exchange or over-the-counter market means a day on which such stock exchange or market is open for business.

 
5.2 Adjustments: The Exercise Price and the number of Common Shares issuable to the Warrantholder pursuant to this Warrant Certificate shall be subject to adjustment from time to time in the events and in the manner provided as follows:
 
	 
	(a)	If at any time during the Adjustment Period the Corporation shall:

 
	 
	(i)	fix a record date for the issue of, or issue, Common Shares to the holders of all or substantially all of the outstanding Common Shares by way of a stock dividend;
	 
	 
	 

	 
	(ii)	fix a record date for the distribution to, or make a distribution to, the holders of all or substantially all of the outstanding Common Shares payable in Common Shares or securities exchangeable for or convertible into Common Shares;
	 
	 
	 

	 
	(iii)	subdivide the outstanding Common Shares into a greater number of Common Shares; or

 
	 
	 
	
 
	 

- 4 -
 
	 
	(iv)	consolidate the outstanding Common Shares into a lesser number of Common Shares;
	 
	 
	 

	 
	(any of such events in subclauses 5.2(a)(i), 5.2(a)(ii), 5.2(a)(iii) and 5.2(a)(iv) above being herein called a “Share Reorganization”), the Exercise Price shall be adjusted on the earlier of the record date on which holders of Common Shares are determined for the purposes of the Share Reorganization and the effective date of the Share Reorganization to the amount determined by multiplying the Exercise Price in effect immediately prior to such record date or effective date, as the case may be, by a fraction:

 
	 
	(A)	the numerator of which shall be the number of Common Shares outstanding on such record date or effective date, as the case may be, before giving effect to such Share Reorganization; and
	 
	 
	 

	 
	(B)	the denominator of which shall be the number of Common Shares which will be outstanding immediately after giving effect to such Share Reorganization (including in the case of a distribution of securities exchangeable for or convertible into Common Shares the number of Common Shares that would have been outstanding had such securities been exchanged for or converted into Common Shares on such date).

 
	 
	To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5.2(a) as a result of the fixing by the Corporation of a record date for the distribution of securities exchangeable for or convertible into Common Shares, the Exercise Price shall be readjusted immediately after the expiry of any relevant exchange or conversion right to the Exercise Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right. If the Warrantholder has not exercised its right to subscribe for and purchase Common Shares on or prior to the record date of such stock dividend or distribution or the effective date of such subdivision or consolidation, as the case may be, upon the exercise of such right thereafter shall be entitled to receive and shall accept in lieu of the number of Common Shares then subscribed for and purchased by the Warrantholder, at the Exercise Price determined in accordance with this clause 5.2(a) the aggregate number of Common Shares that the Warrantholder would have been entitled to receive as a result of such Share Reorganization, if, on such record date or effective date, as the case may be, the Warrantholder had been the holder of record of the number of Common Shares so subscribed for and purchased.

 
	 
	 
	
 
	 

- 5 -
 
	 
	(b)	If at any time during the Adjustment Period the Corporation shall fix a record date for the issue or distribution to the holders of all or substantially all of the outstanding Common Shares of rights, options or warrants pursuant to which such holders are entitled, during a period expiring not more than 45 days after the record date for such issue (such period being the “Rights Period”), to subscribe for or purchase Common Shares or securities exchangeable for or convertible into Common Shares at a price per share to the holder (or in the case of securities exchangeable for or convertible into Common Shares, at an exchange or conversion price per share) at the date of issue of such securities of less than 95% of the Current Market Price of the Common Shares on such record date (any of such events being called a “Rights Offering”), the Exercise Price shall be adjusted effective immediately after the record date for such Rights Offering to the amount determined by multiplying the Exercise Price in effect on such record date by a fraction:

 
	 
	(i)	the numerator of which shall be the aggregate of:

 
	 
	(A)	the number of Common Shares outstanding on the record date for the Rights Offering; and
	 
	 
	 

	 
	(B)	the quotient determined by dividing:

 
	 
	(I)	either (a) the product of the number of Common Shares offered during the Rights Period pursuant to the Rights Offering and the price at which such Common Shares are offered, or, (b) the product of the exchange, exercise or conversion price of the securities so offered and the number of Common Shares for or into which the securities offered pursuant to the Rights Offering may be exchanged, exercised or converted, as the case may be; by
	 
	 
	 

	 
	(II)	the Current Market Price of the Common Shares as of the record date for the Rights Offering; and

 
	 
	(ii)	the denominator of which shall be the aggregate of the number of Common Shares outstanding on such record date and the number of Common Shares offered pursuant to the Rights Offering (including in the case of the issue or distribution of securities exchangeable or exercisable for or convertible into Common Shares the number of Common Shares into which such securities may be exchanged, exercised or converted).
	 
	 
	 

	 
	If by the terms of the rights, options, or warrants referred to in this clause 5.2(b), there is more than one purchase, conversion or exchange price per Common Share, the aggregate price of the total number of additional Common Shares offered for subscription or purchase, or the aggregate conversion or exchange price of the convertible or exchangeable securities so offered, shall be calculated for purposes of the adjustment on the basis of the lowest purchase, conversion or exchange price per Common Share, as the case may be. Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of any such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5.2(b) as a result of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants referred to in this clause 5.2(b), the Exercise Price shall be readjusted immediately after the expiry of any relevant exchange, conversion or exercise right to the Exercise Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiry and shall be further readjusted in such manner upon the expiry of any further such right.

 
	 
	(c)	If at any time during the Adjustment Period the Corporation shall fix a record date for the issue or distribution to the holders of all or substantially all of the Common Shares of:

 
	 
	(i)	shares of the Corporation of any class other than Common Shares;
	 
	 
	 

	 
	(ii)	rights, options or warrants to acquire Common Shares or securities exchangeable or exercisable for or convertible into Common Shares (other than rights, options or warrants pursuant to which holders of Common Shares are entitled, during a period expiring not more than 45 days after the record date for such issue, to subscribe for or purchase Common Shares or securities exchangeable for or convertible into Common Shares at a price per share (or in the case of securities exchangeable or exercisable for or convertible into Common Shares at an exchange, exercise or conversion price per share on the record date for the issue of such securities) of at least 95% of the Current Market Price of the Common Shares on such record date);

 
	 
	 
	
 
	 

- 6 -
 
	 
	(iii)	evidences of indebtedness of the Corporation; or
	 
	 
	 

	 
	(iv)	any property or assets of the Corporation;
	 
	 
	 

	 
	and if such issue or distribution does not constitute a Share Reorganization or a Rights Offering (any of such non-excluded events being herein called a “Special Distribution”), the Exercise Price shall be adjusted effective immediately after the record date for the Special Distribution to the amount determined by multiplying the Exercise Price in effect on the record date for the Special Distribution by a fraction:

 
	 
	(A)	the numerator of which shall be the difference between:

 
	 
	(I)	the product of the number of Common Shares outstanding on such record date and the Current Market Price of the Common Shares on such record date; and
	 
	 
	 

	 
	(II)	the fair value, as determined by a recognized independent firm of valuators, to the holders of Common Shares of the shares, rights, options, warrants, evidences of indebtedness or property or assets to be issued or distributed in the Special Distribution; and

 
	 
	(B)	the denominator of which shall be the product obtained by multiplying the number of Common Shares outstanding on such record date by the Current Market Price of the Common Shares on such record date.

 
	 
		Any Common Shares owned by or held for the account of the Corporation shall be deemed not to be outstanding for the purpose of such calculation. To the extent that any adjustment in the Exercise Price occurs pursuant to this clause 5.2(c) as a result of the fixing by the Corporation of a record date for the issue or distribution of rights, options or warrants to acquire Common Shares or securities exchangeable or exercisable for or convertible into Common Shares referred to in this clause 5.2(c), the Exercise Price shall be readjusted immediately after the expiry of any relevant exchange, exercise or conversion right to the amount which would then be in effect if the current market value of the Common Shares had been determined on the basis of the number of Common Shares issued and remaining issuable immediately after such expiry, and shall be further readjusted in such manner upon the expiry of any further such right.

	 
	 
	 

	 
	(d)	If at any time during the Adjustment Period there shall occur:

 
	 
	(i)	a reclassification or redesignation of the Common Shares, any change of the Common Shares into other shares or securities or any other capital reorganization involving the Common Shares other than a Share Reorganization;

 
	 
	 
	
 
	 

- 7 -
 
	 
	(ii)	a consolidation, amalgamation or merger of the Corporation with or into any other body corporate which results in a reclassification or redesignation of the Common Shares or a change of the Common Shares into other shares or securities; or
	 
	 
	 

	 
	(iii)	the transfer of the undertaking or assets of the Corporation as an entirety or substantially as an entirety to another corporation or entity;
	 
	 
	 

	 
	(any of such events being herein called a “Capital Reorganization”), after the effective date of the Capital Reorganization:

 
	 
	(iv)	the Warrantholder shall be entitled to receive, and shall accept, for the same aggregate consideration, upon exercise of this Warrant, in lieu of the number of Common Shares which the Warrantholder was theretofore entitled to purchase or receive upon the exercise of this Warrant, the kind and aggregate number of shares and other securities or property resulting from the Capital Reorganization which the Warrantholder would have been entitled to receive as a result of the Capital Reorganization if, on the effective date thereof, the Warrantholder had been the registered holder of the number of Common Shares to which the Warrantholder was theretofore entitled to purchase or receive upon the exercise of this Warrant; and
	 
	 
	 

	 
	(v)	the Exercise Price shall, on the effective date of the Capital Reorganization, be adjusted by multiplying the Exercise Price in effect immediately prior to such Capital Reorganization by the number of Common Shares purchasable pursuant to this Warrant Certificate immediately prior to the Capital Reorganization, and dividing the product thereof by the number of successor securities determined in Section 5.2(d)(iv) above.

 
	 
	(e)	If necessary, as a result of any Capital Reorganization, appropriate adjustments shall be made in the application of the provisions of this Warrant Certificate with respect to the rights and interest thereafter of the Warrantholder to the end that the provisions of this Warrant Certificate shall thereafter correspondingly be made applicable as nearly as may reasonably be possible in relation to any shares or other securities or property thereafter deliverable upon the exercise of this Warrant.
	 
	 
	 

	 
	(f)	If at any time during the Adjustment Period any adjustment or readjustment in the Exercise Price shall occur pursuant to the provisions of clauses 5.2(a), 5.2(b) or 5.2(c) hereof, then the number of Common Shares purchasable upon the subsequent exercise of this Warrant shall be simultaneously adjusted or readjusted, as the case may be, by multiplying the number of Common Shares purchasable upon the exercise of this Warrant immediately prior to such adjustment or readjustment by a fraction which shall be the reciprocal of the fraction used in the adjustment or readjustment of the Exercise Price.

 
5.3 Rules: The following rules and procedures shall be applicable to adjustments made pursuant to subsection 5.2 hereof.
 
	 
	(a)	Subject to the following provisions of this subsection 5.3, any adjustment made pursuant to subsection 5.2 hereof shall be made successively whenever an event referred to therein shall occur.

 
	 
	 
	
 
	 

- 8 -
 
	 
	(b)	No adjustment in the Exercise Price shall be required unless such adjustment would result in a change of at least one per cent in the then Exercise Price and no adjustment shall be made in the number of Common Shares purchasable or issuable on the exercise of this Warrant unless it would result in a change of at least one one-hundredth of a Common Share; provided, however, that any adjustments which except for the provision of this clause 5.3(b) would otherwise have been required to be made shall be carried forward and taken into account in any subsequent adjustment. Notwithstanding any other provision of subsection 5.2 hereof, no adjustment of the Exercise Price shall be made which would result in an increase in the Exercise Price or a decrease in the number of Common Shares issuable upon the exercise of this Warrant (except in respect of the Share Reorganization described in subclause 5.2(a)(iv) hereof or a Capital Reorganization described in subclause 5.2(d)(ii) hereof).
	 
	 
	 

	 
	(c)	No adjustment in the Exercise Price or in the number or kind of securities purchasable upon the exercise of this Warrant shall be made in respect of any event described in section 5 hereof if the Warrantholder is entitled to participate in such event on the same terms mutatis mutandis as if the Warrantholder had exercised this Warrant prior to or on the record date or effective date, as the case may be, of such event.
	 
	 
	 

	 
	(d)	No adjustment in the Exercise Price or in the number of Common Shares purchasable upon the exercise of this Warrant shall be made pursuant to subsection 5.2 hereof in respect of the issue from time to time of Common Shares pursuant to this Warrant Certificate or pursuant to any stock option, stock purchase or stock bonus plan in effect from time to time for directors, officers or employees of the Corporation and/or any subsidiary of the Corporation and any such issue, and any grant of options in connection therewith, shall be deemed not to be a Share Reorganization, a Rights Offering nor any other event described in subsection 5.2 hereof.
	 
	 
	 

	 
	(e)	If at any time during the Adjustment Period the Corporation shall take any action affecting the Common Shares, other than an action described in subsection 5.2 hereof, which in the opinion of the directors would have a material adverse effect upon the rights of the Warrantholder, either or both the Exercise Price and the number of Common Shares purchasable upon exercise of this Warrant shall be adjusted in such manner and at such time by action by the directors, in their sole discretion, as may be equitable in the circumstances. Failure of the taking of action by the directors so as to provide for an adjustment prior to the effective date of any action by the Corporation affecting the Common Shares shall be deemed to be conclusive evidence that the directors have determined that it is equitable to make no adjustment in the circumstances.
	 
	 
	 

	 
	(f)	If the Corporation shall set a record date to determine holders of Common Shares for the purpose of entitling such holders to receive any dividend or distribution or any subscription or purchase rights and shall, thereafter and before the distribution to such holders of any such dividend, distribution or subscription or purchase rights, legally abandon its plan to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Exercise Price or the number of Common Shares purchasable upon exercise of this Warrant shall be required by reason of the setting of such record date.

 
	 
	 
	
 
	 

- 9 -
 
	 
	(g)	In any case in which this Warrant shall require that an adjustment shall become effective immediately after a record date for an event referred to in subsection 5.2 hereof, the Corporation may defer, until the occurrence of such event:

 
	 
	(i)	issuing to the Warrantholder, to the extent that this Warrant is exercised after such record date and before the occurrence of such event, the additional Common Shares issuable upon such exercise by reason of the adjustment required by such event; and
	 
	 
	 

	 
	(ii)	delivering to the Warrantholder any distribution declared with respect to such additional Common Shares after such record date and before such event;
	 
	 
	 

	 
	provided, however, that the Corporation shall deliver to the Warrantholder an appropriate instrument evidencing the right of the Warrantholder, upon the occurrence of the event requiring the adjustment, to an adjustment in the Exercise Price and the number of Common Shares purchasable upon the exercise of this Warrant and to such distribution declared with respect to any such additional Common Shares issuable on this exercise of this Warrant.

 
	 
	(h)	In the absence of a resolution of the directors fixing a record date for a Rights Offering, the Corporation shall be deemed to have fixed as the record date therefor the date of the issue of the rights, options or warrants issued pursuant to the Rights Offering.
	 
	 
	 

	 
	(i)	If a dispute shall at any time arise with respect to adjustments of the Exercise Price or the number of Common Shares purchasable upon the exercise of this Warrant, such disputes shall be conclusively determined by the auditors of the Corporation or if they are unable or unwilling to act, by such other firm of independent chartered accountants as may be selected by the directors and any such determination shall be conclusive evidence of the correctness of any adjustment made pursuant to subsection 5.2 hereof and shall be binding upon the Corporation and the Warrantholder.
	 
	 
	 

	 
	(j)	As a condition precedent to the taking of any action which would require an adjustment pursuant to subsection 5.2 hereof, including the Exercise Price and the number or class of Common Shares or other securities which are to be received upon the exercise thereof, the Corporation shall take any action which may, in the opinion of counsel to the Corporation, be necessary in order that the Corporation may validly and legally issue as fully paid and non-assessable shares all of the Common Shares or other securities which the Warrantholder is entitled to receive in accordance with the provisions of this Warrant Certificate.

 
5.4 Notice: At least 21 days prior to any record date or effective date, as the case may be, for any event which requires or might require an adjustment in any of the rights of the Warrantholder under this Warrant, including the Exercise Price and the number of Common Shares which are purchasable under this Warrant, the Corporation shall deliver to the Warrantholder a certificate of the Corporation specifying the particulars of such event and, if determinable, the required adjustment and the calculation of such adjustment. In case any adjustment for which a notice in this subsection 5.4 has been given is not then determinable, the Corporation shall promptly after such adjustment is determinable deliver to the Warrantholder a certificate providing the calculation of such adjustment. The Corporation hereby covenants and agrees that the register of transfers and transfer books for the Common Shares will be open, and that the Corporation will not take any action which might deprive the Warrantholder of the opportunity of exercising the rights of subscription contained in this Warrant Certificate, during such 21 day period.
  	 
	 
	
 
	 

- 10 -
 
6. Further Assurances 
 
The Corporation hereby covenants and agrees that it will do, execute, acknowledge and deliver, or cause to be done, executed, acknowledged and delivered, all and every such other act, deed and assurance as the Warrantholder shall reasonably require for the better accomplishing and effectuating of the intentions and provisions of this Warrant Certificate.
 
7. Time of Essence
 
Time is of the essence of this Warrant Certificate.
 
8. Governing Laws
 
This Warrant Certificate shall be construed in accordance with the laws of the State of Nevada. In the event that any dispute shall occur between the parties arising out of or resulting from the construction, interpretation, enforcement or any other aspect of this Certificate, the parties hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Nevada and to the jurisdiction of the United States District Court for the District of Nevada for the purpose of any suit, action or other proceeding arising out of or based upon this Warrant.
 
9. Notices
 
All notices or other communications to be given under this Warrant Certificate shall be delivered by hand, by telecopier, or by email and, if delivered by hand, shall be deemed to have been given on the delivery date and, if sent by telecopier or email, on the date of transmission if sent before 4:00 p.m. on a business day or, if such day is not a business day, on the first business day following the date of transmission.
 
Notices to the Corporation shall be addressed to:
 
Body and Mind Inc. 
1095 West Pender Street, Suite 750
Vancouver, BC V6E 2M6
Attention:  Leonard Clough, CEO 
Email: len@altuscapital.ca
  
The Corporation or the Warrantholder may change its address for service by notice in writing to the other of them specifying its new address for service under this Warrant Certificate.
 
10. Legends on Common Shares
 
10.1 If the Warrantholder is a U.S. Person or exercising the Warrants for the account or benefit of a U.S. Person, or a person in the United States, then the Warrantholder also acknowledges and understands that the certificates representing the Common Shares will be required to be stamped with the following legend (or substantially equivalent language) restricting transfer in the following manner in the United States:
 
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS.”;
  	 
	 
	
 
	 

- 11 -
 
10.2 If the Warrantholder is outside of the United States and is not (A) a U.S. Person, or (B) exercising the Warrants for the account or benefit of a U.S. Person, or a person in the United States, then the Warrantholder also acknowledges and understands that the certificates representing the Common Shares will be required to be stamped with the following legend (or substantially equivalent language) restricting transfer in the following manner:
 
“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EXEMPTION OR EXCLUSION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS. THE SECURITIES REPRESENTED BY THE CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES ACT.”;
 
provided, however, in either 10.1 or 10.2 above, if any Common Shares are being sold, the legend may be removed by delivery to the Corporation’s registrar and transfer agent and the Corporation of an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, that such legend is no longer required under applicable requirements of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or state securities laws.
 
10.3 If the Warrantholder exercises the Warrants prior to September 18, 2019, then the Warrantholder also acknowledges and understands that the certificates representing the Common Shares will be required, in addition to the respective legend set forth in 10.1 or 10.2 above, as applicable, to be stamped with the following legend:
 
“UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE SEPTEMBER 18, 2019.”
 
11. Lost Certificate
 
11.1 If this Warrant Certificate or any replacement hereof becomes stolen, lost, mutilated or destroyed, the Corporation shall, on such terms as it may in its discretion impose, acting reasonably, issue and deliver a new certificate, in form identical hereto but with appropriate changes, representing any unexercised portion of the subscription rights represented hereby to replace the certificate so stolen, lost, mutilated or destroyed.
  	 
	 
	
 
	 

- 12 -
 
12. Language
 
The parties hereto acknowledge and confirm that they have requested that this Warrant Certificate as well as all notices and other documents contemplated hereby be drawn up in the English language. Les parties aux présentes reconnaissent et confirment qu’elles ont exigé que la présente convention ainsi que tous les avis et documents qui s’y rattachent soient rédigés dans la langue anglaise.
 
13. Transfer
 
13.1 The Warrants are transferable subject to compliance with all applicable securities laws, rules and regulations.
 
14. Successors and Assigns
 
14.1 This Warrant Certificate shall enure to the benefit of the Warrantholder and the successors and assignees thereof and shall be binding upon the Corporation and the successors thereof.
  	 
	 
	
 
	 

- 13 -
 
IN WITNESS WHEREOF, the Corporation has caused this Warrant Certificate to be signed by an authorized officer as of the 17th day of May, 2019.
 
BODY AND MIND INC.
 
	Per:
	 
	 

	 
	Authorized Signatory
	 

__________
  
	 
	 
	
 
	 

 
Schedule A
 
SUBSCRIPTION FORM
 
To: Body and Mind Inc.
 
The undersigned hereby subscribes for ____________ common shares (“Common Shares”) of Body and Mind Inc. (the “Corporation”) (or such other number of Common Shares or other securities to which such subscription entitles the undersigned in lieu thereof or in addition thereto) pursuant to the provisions of the warrant certificate (the “Warrant Certificate”) dated as of the 17th day of May, 2019 issued by the Corporation to the Warrantholder (as defined in the Warrant Certificate) at the purchase price of CAD$1.50 per Common Share if exercised on or before 5:00 p.m. (Pacific time) on May 17, 2023, (or at such other purchase price as may then be in effect under the provisions of the Warrant Certificate) and on and subject to the other terms and conditions specified in the Warrant and encloses herewith a cheque, bank draft or money order or has transmitted good same day funds by wire or other similar transfer in Canadian dollars payable to or to the order of the Corporation in payment of the subscription price.
 
The undersigned hereby directs that the Common Shares subscribed for be registered and delivered as follows:
 
	Name in Full
	Address (include Postal/Zip Code)
	Number of Common Shares

		 	
		 	

 
As at the time of exercise hereunder, the undersigned Warrantholder represents, warrants and certifies as follows (check one):
 
	 
	(A)
	 ̈ the undersigned Warrantholder at the time of exercise of the Warrant is not in the United States, is not a “U.S. person” as defined in Regulation S under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), and is not exercising the Warrant for the account or benefit of a U.S. person or a person in the United States (as defined in Regulation S), and did not execute or deliver this subscription form in the United States; OR

	 
	 
	 

	 
	(B)
	 ̈ the undersigned Warrantholder is resident in the United States, is a U.S. person, or is exercising the Warrant for the account or benefit of a U.S. person or a person in the United States (a “U.S. Holder”), and is an “accredited investor”, as defined in Rule 501(a) of Regulation D under the U.S. Securities Act (a “U.S. Accredited Investor”), and has completed the U.S. Accredited Investor Status Certificate in the form attached to this subscription form; OR 

	 
	 
	 

	 
	(C)
	 ̈ if the undersigned Warrantholder is a U.S. Holder, the undersigned Warrantholder has delivered to the Corporation and the Corporation’s transfer agent, if applicable, an opinion of counsel (which will not be sufficient unless it is in form and substance satisfactory to the Corporation) or such other evidence satisfactory to the Corporation to the effect that with respect to the common shares to be delivered upon exercise of the Warrant, the issuance of such securities has been registered under the U.S. Securities Act and applicable state securities laws, or an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws is available.

 
	 
	 
	
 
	 

- A2 -
 
“United States” and “U.S. person” are as defined in Rule 902 of Regulation S under the U.S. Securities Act (“Regulation S”).
 
If the undersigned has checked box (A) immediately above the undersigned: 
 
	 
	(a)	agrees not to engage in hedging transactions with regard to the Common Shares prior to the expiration of the six-month distribution compliance period set forth in Rule 903(b)(3) of Regulation S;
	 
	 
	 

	 
	(b)	acknowledges that the Common Shares issuable upon exercise of the Warrants are “restricted securities” as defined in Rule 144 of the U.S. Securities Act, and upon the issuance thereof, and until such time as the same is no longer required under the applicable requirements of the U.S. Securities Act or applicable state securities laws and regulations, the certificates representing the Common Shares shall bear the applicable restrictive legends substantially in the forms set forth in sections 10.2 and 10.3 of the Warrant Certificate, as applicable;
	 
	 
	 

	 
	(c)	agrees not to resell the Common Shares except (i) pursuant to registration under the U.S. Securities Act and any applicable state securities laws, (ii) pursuant to an available exemption from registration under the U.S. Securities Act and any applicable state securities laws, or (iii) pursuant to the provisions of Regulation S of the U.S. Securities Act; and
	 
	 
	 

	 
	(d)	subject to compliance with the Corporation’s constating documents and any other applicable agreements between the undersigned and the Corporation, the undersigned acknowledges that the Corporation shall refuse to register any transfer of the Common Shares not made in accordance with the provisions of Regulation S, pursuant to registration under the U.S. Securities Act and any applicable state securities laws, or pursuant to an available exemption from registration under the U.S. Securities Act and any applicable state securities laws.

 
Note: Certificates representing Common Shares will not be registered or delivered to an address in the United States unless box (B) or (C) immediately above is checked.
 
If the undersigned Warrantholder has indicated that the undersigned Warrantholder is a U.S. Accredited Investor by marking box (B) above, the undersigned Warrantholder additionally represents and warrants to the Corporation that:
 
	 
	1	the undersigned Warrantholder has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of an investment in the Common Shares, and the undersigned is able to bear the economic risk of loss of his or her entire investment;
	 
	 
	 

	 
	2.	the undersigned is: (i) purchasing the Common Shares for his or her own account or for the account of one or more U.S. Accredited Investors with respect to which the undersigned is exercising sole investment discretion, and not on behalf of any other person; (ii) is purchasing the Common Shares for investment purposes only and not with a view to resale, distribution or other disposition in violation of United States federal or state securities laws; and (iii) in the case of the purchase by the undersigned of the Common Shares as agent or trustee for any other person or persons (each a “Beneficial Owner”), the undersigned Warrantholder has due and proper authority to act as agent or trustee for and on behalf of each such Beneficial Owner in connection with the transactions contemplated hereby; provided that: (x) if the undersigned Warrantholder, or any Beneficial Owner, is a corporation or a partnership, syndicate, trust or other form of unincorporated organization, the undersigned Warrantholder or each such Beneficial Owner was not incorporated or created solely, nor is it being used primarily to permit purchases without a prospectus or registration statement under applicable law; and (y) each Beneficial Owner, if any, is a U.S. Accredited Investor; and

 
	 
	 
	
 
	 

- A3 -
 
	 
	3.	the undersigned has not exercised the Warrants as a result of any form of general solicitation or general advertising (as such terms are used in Rule 502 of Regulation D under the U.S. Securities Act), including advertisements, articles, notices or other communications published in any newspaper, magazine or similar media, or broadcast over radio, television, the Internet or other form of telecommunications, or any seminar or meeting whose attendees have been invited by general solicitation or general advertising.

 
If the undersigned has indicated that the undersigned is a U.S. Accredited Investor by marking box (B) above, the undersigned also acknowledges and agrees that:
 
	 
	1.	the Corporation has provided to the undersigned the opportunity to ask questions and receive answers concerning the terms and conditions of the offering, and the undersigned has had access to such information concerning the Corporation as the undersigned has considered necessary or appropriate in connection with the undersigned’s investment decision to acquire the Common Shares;
	 
	 
	 

	 
	2.	if the undersigned decides to offer, sell or otherwise transfer any of the Common Shares, the undersigned must not, and will not, offer, sell or otherwise transfer any of such Common Shares directly or indirectly, unless:

 
	 
	(a)	the sale is to the Corporation;
	 
	 
	 

	 
	(b)	the sale is made outside the United States in a transaction meeting the requirements of Rule 904 of Regulation S under the U.S. Securities Act and in compliance with applicable local laws and regulations;
	 
	 
	 

	 
	(c)	the sale is made pursuant to the exemption from the registration requirements under the U.S. Securities Act provided by Rule 144 thereunder, if available, and in accordance with any applicable state securities or “blue sky” laws; or
	 
	 
	 

	 
	(d)	the Common Shares are sold in a transaction that does not require registration under the U.S. Securities Act or any applicable state laws and regulations governing the offer and sale of securities,
	 
	 
	 

	 
	and in the case of (c) and (d) above, it has prior to such sale furnished to the Corporation and the Corporation’s registrar and transfer agent an opinion of counsel of recognized standing in form and substance reasonably satisfactory to the Corporation and the Corporation’s registrar and transfer agent;

 
	 
	3.	the Common Shares are “restricted securities” under applicable federal securities laws and that the U.S. Securities Act and the rules of the United States Securities and Exchange Commission provide in substance that the undersigned may dispose of the Common Shares only pursuant to an effective registration statement under the U.S. Securities Act or an exemption therefrom;

 
	 
	 
	
 
	 

- A4 -
 
	 
	4.	the Corporation has no obligation to register any of the Common Shares;
	 
	 
	 

	 
	5.	the certificates representing the Common Shares (and any certificates issued in exchange or substitution for the Common Shares) will bear a legend stating that such securities have not been registered under the U.S. Securities Act or the securities laws of any state of the United States, and may not be offered for sale or sold unless registered under the U.S. Securities Act and the securities laws of all applicable states of the United States, or unless an exemption from such registration requirements is available;
	 
	 
	 

	 
	6.	the legend may be removed by delivery to the Corporation’s registrar and transfer agent and the Corporation of an opinion of counsel, of recognized standing reasonably satisfactory to the Corporation, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws;
	 
	 
	 

	 
	7.	there may be material tax consequences to the undersigned of an acquisition or disposition of the Common Shares;
	 
	 
	 

	 
	8.	the Corporation gives no opinion and makes no representation with respect to the tax consequences to the undersigned under United States, state, local or foreign tax law of the undersigned’s acquisition or disposition of any Common Shares;
	 
	 
	 

	 
	9.	funds representing the subscription price for the Common Shares which will be advanced by the undersigned to the Corporation upon exercise of the Warrants will not represent proceeds of crime for the purposes of the United States Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act (the “PATRIOT Act”), and the undersigned acknowledges that the Corporation may in the future be required by law to disclose the undersigned’s name and other information relating to this exercise form and the undersigned’s subscription hereunder, on a confidential basis, pursuant to the PATRIOT Act. No portion of the subscription price to be provided by the undersigned (i) has been or will be derived from or related to any activity that is deemed criminal under the laws of the United States of America, or any other jurisdiction, or (ii) is being tendered on behalf of a person or entity who has not been identified to or by the undersigned, and it shall promptly notify the Corporation if the undersigned discovers that any of such representations ceases to be true and provide the Corporation with appropriate information in connection therewith; and
	 
	 
	 

	 
	10.	the undersigned consents to the Corporation making a notation on its records or giving instructions to any transfer agent of the Corporation in order to implement the restrictions on transfer set forth and described in this subscription form or the Warrant Certificate.

 
In the absence of instructions to the contrary, the securities or other property will be issued in the name of or to the Warrantholder hereof and will be sent by first class mail to the last address of the Warrantholder appearing on the register maintained for the Warrants.
 
[Signature page follows]
  	 
	 
	
 
	 

- A5 -
 
DATED this _________ day of _______________, 20___.
 
In the presence of:
 
	 
	 
	 
	 

	Signature of Witness
	 
	Signature of Warrantholder
	 

	 
	 
	 
	 

	 
	 
	 
	 

	Witness’s Name
	 
	Name and Title of Authorized Signatory for the Warrantholder
	 

 
Please print below your name and address in full.
 
	Legal Name 
	 

	 
	 

	Address 
	 

	 
	 

	 
	 

 
INSTRUCTIONS FOR SUBSCRIPTION
 
The signature to the subscription must correspond in every particular with the name written upon the face of the Warrant Certificate without alteration. If the certificates representing the Common Shares to be issued upon exercise of the Warrants differs from the registration of the Warrant Certificates the signature of the registered Warrantholder must be guaranteed by an authorized officer of a Canadian chartered bank, or of a major Canadian trust company, or by a medallion signature guarantee from a member recognized under the Signature Medallion Guarantee Program, or from a similar entity in the United States, if this transfer is executed in the United States, or in accordance with industry standards
 
In the case of persons signing by agent or attorney or by personal representative(s), the authority of such agent, attorney or representative(s) to sign must be proven to the satisfaction of the Corporation.
 
If the Warrant Certificate and the form of subscription are being forwarded by mail, registered mail must be employed.
__________
  	 
	 
	
 
	 

 
U.S. ACCREDITED INVESTOR STATUS CERTIFICATE
 
In connection with the exercise of certain outstanding warrants of BODY AND MIND INC. (the “Company”) by the Warrantholder, the Warrantholder hereby represents and warrants to the Company that the Warrantholder, and each beneficial owner (each a “Beneficial Owner”), if any, on whose behalf the Warrantholder is exercising such warrants, satisfies one or more of the following categories of Accredited Investor (please write “W/H” for the undersigned Warrantholder, and “B/O” for each beneficial owner, if any, on each line that applies):
 
	_______ (1)
	Any bank as defined in Section 3(a)(2) of the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act of 1934; any insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; any investment company registered under the U.S. Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; any employee benefit plan within the meaning of the U.S. Employee Retirement Income Security Act of 1974 if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000, or, if a self-directed plan, with investment decisions made solely by persons that are “accredited investors” (as such term is defined in Rule 501 of Regulation D of the U.S. Securities Act);

	 
	 

	_______ (2)
	Any private business development company as defined in Section 202(a)(22) of the U.S. Investment Advisers Act of 1940;

	 
	 

	_______ (3)
	Any organization described in Section 501(c)(3) of the U.S. Internal Revenue Code, corporation, Massachusetts or similar business trust, or partnership, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of US$5,000,000; 

	 
	 

	_______ (4)
	Any trust with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person (being defined as a person who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment);

  	 
	 
	
 
	 

- 2 -
 
	_______ (5)
	A natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of purchase, exceeds US$1,000,000 (for the purposes of calculating net worth, (i) the person’s primary residence shall not be included as an asset; (ii) indebtedness that is secured by the person’s primary residence, up to the estimated fair market value of the primary residence at the time of this certification, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of this certification exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); and (iii) indebtedness that is secured by the person’s primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability);

	 
	 

	_______ (6)
	A natural person who had annual gross income during each of the last two full calendar years in excess of US$200,000 (or together with his or her spouse in excess of US$300,000) and reasonably expects to have annual gross income in excess of US$200,000 (or together with his or her spouse in excess of US$300,000) during the current calendar year, and no reason to believe that his or her annual gross income will not remain in excess of US$200,000 (or that together with his or her spouse will not remain in excess of US$300,000) for the foreseeable future;

	 
	 

	_______ (7)
	Any director or executive officer of the Company; or

	 
	 

	_______ (8)
	Any entity in which all of the equity owners meet the requirements of at least one of the above categories (if this alternative is selected you must identify each equity owner and provide statements for each demonstrating how they qualify as an accredited investor).

__________
  
	 
	 
	
 
	 

 
Schedule B
 
FORM OF TRANSFER
 
TO BE EXECUTED BY THE REGISTERED HOLDER TO TRANSFER THIS WARRANT TO 
PURCHASE COMMON SHARES ISSUED ON MAY 17, 20197
(THE “WARRANT”)
 
To:                     Body and Mind Inc. (the “Corporation”)
 
FOR VALUE RECEIVED, the undersigned (the “Transferor”) hereby sells, assigns and transfers unto __________________________________ (the “Transferee”) ________________ Warrants exercisable for common shares of the Corporation registered in the name of the Transferor on the register of the Corporation.
 
The Transferor hereby directs that the Warrants hereby transferred be issued and delivered as follows:
 
	NAME IN FULL
	ADDRESS
	NUMBER OF WARRANTS

		 	

 
The Transferor irrevocably constitute and appoint ______________________ as attorney to make such transfer on the books of Body and Mind Inc., maintained for the purpose, with full power of substitution in the premises.
 
The undersigned hereby certifies that (check either A or B, as applicable):
 
	____ (A)
	if the Transferee is (i) a U.S. person, (ii) a person in the United States, or (ii) a person who is acting for the account or benefit of a U.S. person or a person in the United States, the transfer of the Warrants is being completed pursuant to an exemption from the registration requirements of the U.S. Securities Act and any applicable state securities laws, in which case the Transferor has delivered or caused to be delivered a written opinion of U.S. legal counsel or recognized standing in form and substance reasonably acceptable to the Corporation and the transfer agent to such effect; OR

	 
	 

	____ (B)
	the transfer of the Warrants is being made outside the United States in accordance with Rule 904 of Regulation S (“Regulation S”) under the U.S. Securities Act, and in compliance with all local laws and regulations, and the undersigned has delivered or caused to be delivered an opinion of counsel of recognized standing in form and substance satisfactory to the Corporation and the transfer agent to the effect that such sale is being made in compliance with Rule 904 of Regulation S and in accordance will all local laws and regulations.

 
“United States” and “U.S. person” are as defined in Regulation S under the U.S. Securities Act.
  	 
	 
	
 
	 

- 2 -
 
DATED this _______ day of ___________________, 20___.
 
Signature of Transferor guaranteed by:
 
	 
	 
	 
	 

	Medallion Signature Guarantee
Stamp of Transferor
	 
	Signature of Transferor
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	(print name of Transferor)
	 

	 
	 
	 
	 

	Authorized Officer 
	 
	 
	 

	 
	 
	(if applicable, print name of signatory and office)
	 

	 
	 
	 
	 

	Name of Institution 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	Address of Transferor
	 

 
INSTRUCTIONS FOR TRANSFER:
 
	1.	The signature of the Holder must be the signature of the person appearing on the face of this Warrant Certificate in every particular without any changes whatsoever.
	 
	 

	2.	If the Transfer Form is signed on behalf of a corporation, partnership, association, or by an agent, trustee, executor, administrator, curator, guardian, attorney or any person acting in a judicial or representative capacity, the certificate must be accompanied by evidence of authority to sign satisfactory to the Corporation.
	 
	 

	3.	The signature on the Transfer Form must be guaranteed by one of the following methods:
	 
	 

		In Canada and the US: a Medallion Guarantee obtained from a member of an acceptable Medallion Guarantee Program (STAMP,SEMP or MSP). Many banks, credit unions and broker dealers are members of a Medallion Guarantee Program. The guarantor must affix a stamp in the space above bearing the actual words “Medallion Guaranteed”.
	 
	 

		In Canada: a Signature Guarantee obtained from a major Canadian Schedule I bank that is not a member of a Medallion Guarantee Program. The guarantor must affix a stamp in the space above bearing the actual words “Signature Guaranteed”.
	 
	 

		Outside Canada and the US: Holders must obtain a guarantee from a local financial institution that has a corresponding affiliate in Canada or the US that is a member of an acceptable Medallion Guarantee Program. The corresponding affiliate must overguarantee the guarantee provided by the local financial institution.
	 
	 

	4.	Warrants shall only be transferable in accordance with all applicable laws.

 
	 
	 
	
 
	 

- 3 -
 
TRANSFEREE ACKNOWLEDGMENT
 
The undersigned transferee (the “Transferee”) acknowledges and agrees that the Warrants may not be offered, sold, pledged or otherwise transferred in the absence of: (a) an effective registration statement under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and the applicable laws of any such state, relating thereto; or (b) an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws. Each Warrant Certificate, and each certificate representing Common Shares issuable upon exercise thereof, shall contain legends on the face thereof, in the appropriate form, setting forth the restrictions on transfer referred to in the Warrant Certificate, unless in the opinion of counsel for the holder thereof (which is in form and substance satisfactory to the Corporation and its transfer agent), the securities represented thereby are not, at such time, required by law to bear such legend, or in the case of the Common Shares, are transferred pursuant to an effective registration statement under the U.S. Securities Act and the applicable state securities laws. The holder acknowledges and agrees that the Warrants represented by this Warrant Certificate, and the Common Shares issuable upon exercise thereof, constitute “restricted securities” under the U.S. Securities Act. 
 
If the Transferee acquires the Warrants pursuant to a resale transaction pursuant to Rule 904 of Regulation S under the U.S. Securities Act, then the Transferee acknowledges that the Warrants still continue to be deemed restricted securities and will continue to bear restrictive legends. 
 
Any certificate issued at any time in exchange or substitution for any certificate bearing restrictive legends shall also bear such legends unless in the opinion of counsel for the holder thereof (which is in form and substance satisfactory to the Corporation and its transfer agent), the securities represented thereby are not, at such time, required by law to bear such legends.
 
The Transferee acknowledges that it shall notify the Corporation prior to any exercise or deemed exercise of the Warrants if the representations, warranties and certifications contained in the Form of Transfer are no longer true and correct.
 
	Dated the ___ day of ________________, 20___.
 
 
			 

	In the presence of:
		(Signature of Transferee)
	 

	 
	 
	 
	 

	 		 
	 

	(Witness)
	 
	(Name of Transferee – Please print)
	 

	 
	 
	 
	 

	 		 
	 

	(Name of Witness – Please print)
	 
	(Name and Capacity of Authorized Representative – please print)
	 

 
The Warrants and the Common Shares issuable upon exercise of the Warrants shall only be transferable in accordance with all applicable laws. The Warrants may only be exercised in the manner required by the Warrant Certificate and the subscription form attached thereto. Any securities acquired pursuant to this exercise of Warrants shall be subject to applicable hold periods and any certificate representing such securities may bear restrictive legends.
__________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00296-of-00352.parquet"}]]