Document:

Exhibit
10.2

 

ESCROW
AGREEMENT

 

THIS
AGREEMENT is made as of the 7th day of March, 2018

 

AMONG:

 

PERMEX
PETROLEUM CORPORATION

 

(the
“Issuer”)

 

AND:

 

TSX
TRUST COMPANY

 

(the
“Escrow Agent”)

 

AND:

 

EACH
OF THE UNDERSIGNED SECURITYHOLDERS OF THE ISSUER

 

(a
“Securityholder” or “you”)

 

(collectively,
the “Parties”)

 

This
Agreement is being entered into by the Parties under National Policy 46-201 Escrow for Initial Public Offerings (the
Policy) in connection with the proposed distribution (the IPO), by the Issuer, an emerging issuer, of common shares by
prospectus.

 

For
good and valuable consideration, the Parties agree as follows:

 

PART
1 ESCROW

 

1.1
Appointment of Escrow Agent

 

The
Issuer and the Securityholders appoint the Escrow Agent to act as escrow agent under this Agreement. The Escrow Agent accepts the appointment.

 

1.2
Deposit of Escrow Securities in Escrow

 

(1)
You are depositing the securities (escrow securities) listed opposite your name in Schedule “A” with the Escrow Agent to
be held in escrow under this Agreement. You will immediately deliver or cause to be delivered to the Escrow Agent any share certificates
or other evidence of these securities which you have or which you may later receive.

 

(2)
If you receive any other securities (additional escrow securities):

 

(a)
as a dividend or other distribution on escrow securities;

 

(b)
on the exercise of a right of purchase, conversion or exchange attaching to escrow securities, including securities received on conversion
of special warrants;

 

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(c)
on a subdivision, or compulsory or automatic conversion or exchange of escrow securities; or

 

(d)
from a successor issuer in a business combination, if Part 6 of this Agreement applies,

 

you
will deposit them in escrow with the Escrow Agent. You will deliver or cause to be delivered to the Escrow Agent any share certificates
or other evidence of those additional escrow securities. When this Agreement refers to escrow securities, it includes additional
escrow securities.

 

(3)
You will immediately deliver to the Escrow Agent any replacement share certificates or other evidence of additional escrow securities
issued to you.

 

1.3
Direction to Escrow Agent

 

The
Issuer and the Securityholders direct the Escrow Agent to hold the escrow securities in escrow until they are released from escrow under
this Agreement.

 

PART
2 RELEASE OF ESCROW SECURITIES

 

2.1
Release Schedule

 

If
the Issuer is an emerging issuer (as defined in section 3.3 of the Policy) and you have not sold any escrow securities in a permitted
secondary offering, your escrow securities will be released as follows:

 

	On
    the date the Issuer’s securities are listed on a Canadian exchange (the listing date)	 	1/10
    of your escrow securities
	6
    months after the listing date	 	1/6
    of your remaining escrow securities
	12
    months after the listing date	 	1/5
    of your remaining escrow securities
	18
    months after the listing date	 	1/4
    of your remaining escrow securities
	24
    months after the listing date	 	1/3
    of your remaining escrow securities
	30
    months after the listing date	 	1/2
    of your remaining escrow securities
	36
    months after the listing date	 	your
    remaining escrow securities

 

2.2
Alternate meaning of “listing date”

 

If
the Issuer is an emerging issuer, an alternate meaning for listing date is the date the Issuer completes its IPO if:

 

(a)
the Issuer’s securities are not listed on a Canadian exchange immediately after its IPO; or

 

(b)
the Issuer’s securities are listed on a Canadian exchange immediately before its IPO.

 

2.3
Additional escrow securities

 

If
you acquire additional escrow securities, those securities will be added to the securities already in escrow, to increase the number
of remaining escrow securities. After that, all of the escrow securities will be released in accordance with the applicable release schedule
in the table above.

 

    	-2-

    	 

    

 

2.4
Additional Release Schedule

 

Notwithstanding
sections 2.1 and 3.2, escrow securities held by Securityholders other than The Howard Group Inc. and Gravitas Securities Inc. will only
be released upon the later of the terms set out in the Policy and the following release schedule (the “Additional Release Schedule”):

 

	On
    the date the Issuer’s securities are listed on a Canadian exchange (the listing date)	 	No
    release
	6
    months after the listing date	 	1/4
    of your escrow securities
	12
    months after the listing date	 	1/5
    of your remaining escrow securities
	18
    months after the listing date	 	1/4
    of your remaining escrow securities
	24
    months after the listing date	 	1/3
    of your remaining escrow securities
	30
    months after the listing date	 	1/2
    of your remaining escrow securities
	36
    months after the listing date	 	your
    remaining escrow securities

 

2.5
Delivery of Share Certificates for Escrow Securities

 

The
Escrow Agent will send to each Securityholder any share certificates or other evidence of that Securityholder’s escrow securities
in the possession of the Escrow Agent released from escrow as soon as reasonably practicable after the release.

 

2.6
Replacement Certificates

 

If,
on the date a Securityholder’s escrow securities are to be released, the Escrow Agent holds a share certificate or other evidence
representing more escrow securities than are to be released, the Escrow Agent will deliver the share certificate or other evidence to
the Issuer or its transfer agent and request replacement share certificates or other evidence. The Issuer will cause replacement share
certificates or other evidence to be prepared and delivered to the Escrow Agent. After the Escrow Agent receives the replacement share
certificates or other evidence, the Escrow Agent will send to the Securityholder or at the Securityholder’s direction, the replacement
share certificate or other evidence of the escrow securities released. The Escrow Agent and Issuer will act as soon as reasonably practicable.

 

2.7
Release upon Death

 

(1)
If a Securityholder dies, the Securityholder’s escrow securities will be released from escrow. The Escrow Agent will deliver any
share certificates or other evidence of the escrow securities in the possession of the Escrow Agent to the Securityholder’s legal
representative.

 

(2)
Prior to delivery the Escrow Agent must receive:

 

(a)
a certified copy of the death certificate; and

 

(b)
any evidence of the legal representative’s status that the Escrow Agent may reasonably require.

 

PART
3 EARLY RELEASE ON CHANGE OF ISSUER STATUS

 

3.1
Becoming an Established Issuer

 

If
the Issuer is an emerging issuer on the date of this Agreement and, during this Agreement, the Issuer:

 

(a)
lists its securities on the Toronto Stock Exchange Inc. or Aequitas NEO Exchange Inc.;

 

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(b)
becomes a TSX Venture Exchange Inc. (TSX Venture) Tier 1 issuer; or

 

(c)
lists or quotes its securities on an exchange or market outside Canada that its “principal regulator” under National Policy
43-201 Mutual Reliance Review System for Prospectuses and Annual Information Forms (in Quebec under Staff Notice, Mutual
Reliance Review System for Prospectuses and Annual Information Forms’) or, if the Issuer has only filed its IPO prospectus
in one jurisdiction, the securities regulator in that jurisdiction, is satisfied has minimum listing requirements at least equal to those
of TSX Venture Tier 1, then the Issuer becomes an established issuer.

 

3.2
Release of Escrow Securities

 

(1)
When an emerging issuer becomes an established issuer, the release schedule for its escrow securities changes.

 

(2)
If an emerging issuer becomes an established issuer 18 months or more after its listing date, all escrow securities will be released
immediately.

 

(3)
If an emerging issuer becomes an established issuer within 18 months after its listing date, all escrow securities that would have been
released to that time, if the Issuer was an established issuer on its listing date, will be released immediately. Remaining escrow securities
will be released in equal installments on the day that is 6 months, 12 months and 18 months after the listing date.

 

3.3
Filing Requirements

 

Escrow
securities will not be released under this Part until the Issuer does the following:

 

(a)
at least 20 days before the date of the first release of escrow securities under the new release schedule, files with the securities
regulators in the jurisdictions in which it is a reporting issuer

 

	 	(i)	a certificate signed by a director or officer of the Issuer
authorized to sign stating

 

	 	(A)	that the Issuer has become an established issuer by satisfying
one of the conditions in section 3.1 and specifying the condition, and
	 	 	 
	 	(B)	the number of escrow securities to be released on the first
release date under the new release schedule, and

 

	 	(ii)	a copy of a letter or other evidence from the exchange or quotation
service confirming that the Issuer has satisfied the condition to become an established issuer; and

 

(b)
at least 10 days before the date of the first release of escrow securities under the new release schedule, issues and files with the
securities regulators in the jurisdictions in which it is a reporting issuer a news release disclosing details of the first release of
the escrow securities and the change in the release schedule, and sends a copy of such filing to the Escrow Agent.

 

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3.4
Amendment of Release Schedule

 

The
new release schedule will apply 10 days after the Escrow Agent receives a certificate signed by a director or officer of the Issuer authorized
to sign

 

(a)
stating that the Issuer has become an established issuer by satisfying one of the conditions in section 3.1 and specifying the condition;

 

(b)
stating that the release schedule for the Issuer’s escrow securities has changed;

 

(c)
stating that the Issuer has issued a news release at least 10 days before the first release date under the new release schedule and specifying
the date that the news release was issued; and

 

(d)
specifying the new release schedule.

 

3.5
No Modification

 

Nothing
in this Part 3 will modify the Additional Release Schedule set out in section 2.3 that is applicable to escrow securities held by Securityholders
other than The Howard Group Inc. and Gravitas Securities Inc.

 

PART
4 DEALING WITH ESCROW SECURITIES

 

4.1
Restriction on Transfer, etc.

 

Unless
it is expressly permitted in this Agreement, you will not sell, transfer, assign, mortgage, enter into a derivative transaction concerning,
or otherwise deal in any way with your escrow securities or any related share certificates or other evidence of the escrow securities.
If a Securityholder is a private company controlled by one or more principals (as defined in section 3.5 of the Policy) of the Issuer,
the Securityholder may not participate in a transaction that results in a change of its control or a change in the economic exposure
of the principals to the risks of holding escrow securities.

 

4.2
Pledge, Mortgage or Charge as Collateral for a Loan

 

You
may pledge, mortgage or charge your escrow securities to a financial institution as collateral for a loan, provided that no escrow securities
or any share certificates or other evidence of escrow securities will be transferred or delivered by the Escrow Agent to the financial
institution for this purpose. The loan agreement must provide that the escrow securities will remain in escrow if the lender realizes
on the escrow securities to satisfy the loan.

 

4.3
Voting of Escrow Securities

 

You
may exercise any voting rights attached to your escrow securities.

 

4.4
Dividends on Escrow Securities

 

You
may receive a dividend or other distribution on your escrow securities, and elect the manner of payment from the standard options offered
by the Issuer. If the Escrow Agent receives a dividend or other distribution on your escrow securities, other than additional escrow
securities, the Escrow Agent will pay the dividend or other distribution to you on receipt.

 

4.5
Exercise of Other Rights Attaching to Escrow Securities

 

You
may exercise your rights to exchange or convert your escrow securities in accordance with this Agreement.

 

    	-5-

    	 

    

 

PART
5 PERMITTED TRANSFERS WITHIN ESCROW

 

5.1
Transfer to Directors and Senior Officers

 

(1)
You may transfer escrow securities within escrow to existing or, upon their appointment, incoming directors or senior officers of the
Issuer or any of its material operating subsidiaries, if the Issuer’s board of directors has approved the transfer.

 

(2)
Prior to the transfer the Escrow Agent must receive:

 

(a)
a certified copy of the resolution of the board of directors of the Issuer approving the transfer;

 

(b)
a certificate signed by a director or officer of the Issuer authorized to sign, stating that the transfer is to a director or senior
officer of the Issuer or a material operating subsidiary and that any required approval from the Canadian exchange the Issuer is listed
on has been received;

 

(c)
an acknowledgment in the form of Schedule “B” signed by the transferee;

 

(d)
copies of the letters sent to the securities regulators described in subsection (3) accompanying the acknowledgement; and

 

(e)
a transfer power of attorney, completed and executed by the transferor in accordance with the requirements of the Issuer’s transfer
agent.

 

(3)
At least 10 days prior to the transfer, the Issuer will file a copy of the acknowledgement with the securities regulators in the jurisdictions
in which it is a reporting issuer.

 

5.2
Transfer to Other Principals

 

(1)
You may transfer escrow securities within escrow:

 

(a)
to a person or company that before the proposed transfer holds more than 20% of the voting rights attached to the Issuer’s outstanding
securities; or

 

(b)
to a person or company that after the proposed transfer

 

	 	(i)	will hold more than 10% of the voting rights attached to the
Issuer’s outstanding securities, and
	 	 	 
	 	(ii)	has the right to elect or appoint one or more directors or
senior officers of the Issuer or any of its material operating subsidiaries.

 

(2)
Prior to the transfer the Escrow Agent must receive:

 

	 	(a)	a certificate signed by a director or officer of the Issuer
authorized to sign stating that
	 	 	 
	 	(i)	the transfer is to a person or company that the officer believes,
after reasonable investigation, holds more than 20% of the voting rights attached to the Issuer’s outstanding securities before
the proposed transfer, or

 

    	-6-

    	 

    

 

	 	(ii)	the transfer is to a person or company that

 

	 	(A)	the officer believes, after reasonable investigation, will
hold more than 10% of the voting rights attached to the Issuer’s outstanding securities, and
	 	 	 
	 	(B)	has the right to elect or appoint one or more directors or
senior officers of the Issuer or any of its material operating subsidiaries after the proposed transfer, and

 

	 	(iii)	any required approval from the Canadian exchange the Issuer
is listed on has been received;

 

(b)
an acknowledgment in the form of Schedule “B” signed by the transferee;

 

(c)
copies of the letters sent to the securities regulators accompanying the acknowledgement; and

 

(d)
a transfer power of attorney, executed by the transferor in accordance with the requirements of the Issuer’s transfer agent.

 

(3)
At least 10 days prior to the transfer, the Issuer will file a copy of the acknowledgement with the securities regulators in the jurisdictions
in which it is a reporting issuer.

 

5.3
Transfer upon Bankruptcy

 

(1)
You may transfer escrow securities within escrow to a trustee in bankruptcy or another person or company entitled to escrow securities
on bankruptcy.

 

(2)
Prior to the transfer, the Escrow Agent must receive:

 

(a)
a certified copy of either

 

(i)
the assignment in bankruptcy filed with the Superintendent of Bankruptcy, or

 

(ii)
the receiving order adjudging the Securityholder bankrupt;

 

(b)
a certified copy of a certificate of appointment of the trustee in bankruptcy;

 

(c)
a transfer power of attorney, completed and executed by the transferor in accordance with the requirements of the Issuer’s transfer
agent; and

 

(d)
an acknowledgment in the form of Schedule “B” signed by:

 

	 	(i)	the trustee in bankruptcy, or (ii) on direction from the trustee,
with evidence of that direction attached to the acknowledgment form, another person or company legally entitled to the escrow securities.

 

(3)
Within 10 days after the transfer, the transferee of the escrow securities will file a copy of the acknowledgment with the securities
regulators in the jurisdictions in which the Issuer is a reporting issuer.

 

    	-7-

    	 

    

 

5.4
Transfer Upon Realization of Pledged, Mortgaged or Charged Escrow Securities

 

(1)
You may transfer within escrow to a financial institution the escrow securities you have pledged, mortgaged or charged under section
4.2 to that financial institution as collateral for a loan on realization of the loan.

 

(2)
Prior to the transfer the Escrow Agent must receive:

 

(a)
a statutory declaration of an officer of the financial institution that the financial institution is legally entitled to the escrow securities;

 

(b)
a transfer power of attorney, executed by the transferor in accordance with the requirements of the Issuer’s transfer agent; and

 

(c)
an acknowledgement in the form of Schedule “B” signed by the financial institution.

 

(3)
Within 10 days after the transfer, the transferee of the escrow securities will file a copy of the acknowledgment with the securities
regulators in the jurisdictions in which the Issuer is a reporting issuer.

 

5.5
Transfer to Certain Plans and Funds

 

(1)
You may transfer escrow securities within escrow to or between a registered retirement savings plan (RRSP), registered retirement income
fund (RRIF) or other similar registered plan or fund with a trustee, where the annuitant of the RRSP or RRIF, or the beneficiaries of
the other registered plan or fund are limited to you and your spouse, children and parents, or, if you are the trustee of such a registered
plan or fund, to the annuitant of the RRSP or RRIF, or a beneficiary of the other registered plan or fund, as applicable, or his or her
spouse, children and parents.

 

(2)
Prior to the transfer the Escrow Agent must receive:

 

(a)
evidence from the trustee of the transferee plan or fund, or the trustee’s agent, stating that, to the best of the trustee’s
knowledge, the annuitant of the RRSP or RRIF, or the beneficiaries of the other registered plan or fund do not include any person or
company other than you and your spouse, children and parents;

 

(b)
a transfer power of attorney, executed by the transferor in accordance with the requirements of the Issuer’s transfer agent; and

 

(c)
an acknowledgement in the form of Schedule “B” signed by the trustee of the plan or fund.

 

(3)
Within 10 days after the transfer, the transferee of the escrow securities will file a copy of the acknowledgment with the securities
regulators in the jurisdictions in which the Issuer is a reporting issuer.

 

5.6
Effect of Transfer Within Escrow

 

After
the transfer of escrow securities within escrow, the escrow securities will remain in escrow and released from escrow under this Agreement
as if no transfer has occurred on the same terms that applied before the transfer. The Escrow Agent will not deliver any share certificates
or other evidence of the escrow securities to transferees under this Part 5.

 

    	-8-

    	 

    

 

PART
6 BUSINESS COMBINATIONS

 

6.1
Business Combinations

 

This
Part applies to the following (business combinations):

 

(a)
a formal take-over bid for all outstanding equity securities of the Issuer or which, if successful, would result in a change of control
of the Issuer

 

(b)
a formal issuer bid for all outstanding equity securities of the Issuer

 

(c)
a statutory arrangement

 

(d)
an amalgamation

 

(e)
a merger

 

(f)
a reorganization that has an effect similar to an amalgamation or merger

 

6.2
Delivery to Escrow Agent

 

You
may tender your escrow securities to a person or company in a business combination. At least five business days prior to the date the
escrow securities must be tendered under the business combination, you must deliver to the Escrow Agent:

 

(a)
a written direction signed by you that directs the Escrow Agent to deliver to the depositary under the business combination any share
certificates or other evidence of the escrow securities and a completed and executed cover letter or similar document and, where required,
transfer power of attorney completed and executed for transfer in accordance with the requirements of the depositary, and any other documentation
specified or provided by you and required to be delivered to the depositary under the business combination; and

 

(b)
any other information concerning the business combination as the Escrow Agent may reasonably request.

 

6.3
Delivery to Depositary

 

As
soon as reasonably practicable, and in any event no later than three business days after the Escrow Agent receives the documents and
information required under section 6.2, the Escrow Agent will deliver to the depositary, in accordance with the direction, any share
certificates or other evidence of the escrow securities, and a letter addressed to the depositary that

 

(a)
identifies the escrow securities that are being tendered;

 

(b)
states that the escrow securities are held in escrow;

 

(c)
states that the escrow securities are delivered only for the purposes of the business combination and that they will be released from
escrow only after the Escrow Agent receives the information described in section 6.4;

 

(d)
if any share certificates or other evidence of the escrow securities have been delivered to the depositary, requires the depositary to
return to the Escrow Agent, as soon as practicable, any share certificates or other evidence of escrow securities that are not released
from escrow into the business combination; and

 

    	-9-

    	 

    

 

(e)
where applicable, requires the depositary to deliver or cause to be delivered to the Escrow Agent, as soon as practicable, any share
certificates or other evidence of additional escrow securities that you acquire under the business combination.

 

6.4
Release of Escrow Securities to Depositary

 

The
Escrow Agent will release from escrow the tendered escrow securities when the Escrow Agent receives a declaration signed by the depositary
or, if the direction identifies the depositary as acting on behalf of another person or company in respect of the business combination,
by that other person or company, that:

 

(a)
the terms and conditions of the business combination have been met or waived; and

 

(b)
the escrow securities have either been taken up and paid for or are subject to an unconditional obligation to be taken up and paid for
under the business combination.

 

6.5
Escrow of New Securities

 

If
you receive securities (new securities) of another issuer (successor issuer) in exchange for your escrow securities, the
new securities will be subject to escrow in substitution for the tendered escrow securities if, immediately after completion of the business
combination:

 

(a)
the successor issuer is not an exempt issuer (as defined in section 3.2 of the Policy);

 

(b)
you are a principal (as defined in section 3.5 of the Policy) of the successor issuer; and

 

(c)
you hold more than 1% of the voting rights attached to the successor issuer’s outstanding securities (In calculating this percentage,
include securities that may be issued to you under outstanding convertible securities in both your securities and the total securities
outstanding.)

 

6.6
Release from Escrow of New Securities

 

(1)
As soon as reasonably practicable after the Escrow Agent receives:

 

(a)
a certificate from the successor issuer signed by a director or officer of the successor issuer authorized to sign

 

	 	(i)	stating that it is a successor issuer to the Issuer as a result
of a business combination and whether it is an emerging issuer or an established issuer under the Policy, and

 

	 	(ii)	listing the Securityholders whose new securities are subject
to escrow under section 6.5,

 

the
escrow securities of the Securityholders whose new securities are not subject to escrow under section 6.5 will be released, and the Escrow
Agent will send any share certificates or other evidence of the escrow securities in the possession of the Escrow Agent in accordance
with section 2.3.

 

    	-10-

    	 

    

 

(2)
If your new securities are subject to escrow, unless subsection (3) applies, the Escrow Agent will hold your new securities in escrow
on the same terms and conditions, including release dates, as applied to the escrow securities that you exchanged.

 

(3)
If the Issuer is

 

(a)
an emerging issuer, the successor issuer is an established issuer, and the business combination occurs 18 months or more after the Issuer’s
listing date, all escrow securities will be released immediately; and

 

(b)
an emerging issuer, the successor issuer is an established issuer, and the business combination occurs within 18 months after the Issuer’s
listing date, all escrow securities that would have been released to that time, if the Issuer was an established issuer on its listing
date, will be released immediately. Remaining escrow securities will be released in equal instalments on the day that is 6 months, 12
months and 18 months after the Issuer’s listing date.

 

PART
7 RESIGNATION OF ESCROW AGENT

 

7.1
Resignation of Escrow Agent

 

(1)
If the Escrow Agent wishes to resign as escrow agent, the Escrow Agent will give written notice to the Issuer.

 

(2)
If the Issuer wishes to terminate the Escrow Agent as escrow agent, the Issuer will give written notice to the Escrow Agent.

 

(3)
If the Escrow Agent resigns or is terminated, the Issuer will be responsible for ensuring that the Escrow Agent is replaced not later
than the resignation or termination date by another escrow agent that is acceptable to the securities regulators having jurisdiction
in the matter and that has accepted such appointment, which appointment will be binding on the Issuer and the Securityholders.

 

(4)
The resignation or termination of the Escrow Agent will be effective, and the Escrow Agent will cease to be bound by this Agreement,
on the date that is 60 days after the date of receipt of the notices referred to above by the Escrow Agent or Issuer, as applicable,
or on such other date as the Escrow Agent and the Issuer may agree upon (the “resignation or termination date”), provided
that the resignation or termination date will not be less than 10 business days before a release date.

 

(5)
If the Issuer has not appointed a successor escrow agent within 60 days of the resignation or termination date, the Escrow Agent will
apply, at the Issuer’s expense, to a court of competent jurisdiction for the appointment of a successor escrow agent, and the duties
and responsibilities of the Escrow Agent will cease immediately upon such appointment.

 

(6)
On any new appointment under this section, the successor Escrow Agent will be vested with the same powers, rights, duties and obligations
as if it had been originally named herein as Escrow Agent, without any further assurance, conveyance, act or deed. The predecessor Escrow
Agent, upon receipt of payment for any outstanding account for its services and expenses then unpaid, will transfer, deliver and pay
over to the successor Escrow Agent, who will be entitled to receive, all securities, records or other property on deposit with the predecessor
Escrow Agent in relation to this Agreement and the predecessor Escrow Agent will thereupon be discharged as Escrow Agent.

 

    	-11-

    	 

    

 

(7)
If any changes are made to Part 8 of this Agreement as a result of the appointment of the successor Escrow Agent, those changes must
not be inconsistent with the Policy and the terms of this Agreement and the Issuer to this Agreement will file a copy of the new Agreement
with the securities regulators with jurisdiction over this Agreement and the escrow securities.

 

PART
8 OTHER CONTRACTUAL ARRANGEMENTS

 

8.1
Escrow Agent Not a Trustee

 

The
Escrow Agent accepts duties and responsibilities under this Agreement, and the escrow securities and any share certificates or other
evidence of these securities, solely as a custodian, bailee and agent. No trust is intended to be, or is or will be, created hereby and
the Escrow Agent shall owe no duties hereunder as a trustee.

 

8.2
Escrow Agent Not Responsible for Genuineness

 

The
Escrow Agent will not be responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity of
any escrow security deposited with it.

 

8.3
Escrow Agent Not Responsible for Furnished Information

 

The
Escrow Agent will have no responsibility for seeking, obtaining, compiling, preparing or determining the accuracy of any information
or document, including the representative capacity in which a party purports to act, that the Escrow Agent receives as a condition to
a release from escrow or a transfer of escrow securities within escrow under this Agreement.

 

8.4
Escrow Agent Not Responsible after Release

 

The
Escrow Agent will have no responsibility for escrow securities that it has released to a Securityholder or at a Securityholder’s
direction according to this Agreement.

 

8.5
Indemnification of Escrow Agent

 

The
Issuer and each Securityholder hereby jointly and severally agree to indemnify and hold harmless the Escrow Agent, its affiliates, and
their current and former directors, officers, employees and agents from and against any and all claims, demands, losses, penalties, costs,
expenses, fees and liabilities, including, without limitation, legal fees and expenses, directly or indirectly arising out of, in connection
with, or in respect of, this Agreement, except where same result directly and principally from gross negligence, willful misconduct or
bad faith on the part of the Escrow Agent. This indemnity survives the release of the escrow securities, the resignation or termination
of the Escrow Agent and the termination of this Agreement.

 

8.6
Additional Provisions

 

(1)
The Escrow Agent will be protected in acting and relying reasonably upon any notice, direction, instruction, order, certificate, confirmation,
request, waiver, consent, receipt, statutory declaration or other paper or document (collectively referred to as “Documents”)
furnished to it and purportedly signed by any officer or person required to or entitled to execute and deliver to the Escrow Agent
any such Document in connection with this Agreement, not only as to its due execution and the validity and effectiveness of its provisions,
but also as to the truth or accuracy of any information therein contained, which it in good faith believes to be genuine.

 

    	-12-

    	 

    

 

(2)
The Escrow Agent will not be bound by any notice of a claim or demand with respect thereto, or any waiver, modification, amendment, termination
or rescission of this Agreement unless received by it in writing, and signed by the other Parties and approved by the applicable securities
regulators with jurisdiction as set out in section 10.6 and, if applicable, the Canadian exchange on which the Issuer’s securities
are listed, and, if the duties or indemnification of the Escrow Agent in this Agreement are affected, unless it has given its prior written
consent.

 

(3)
The Escrow Agent may consult with or retain such legal counsel and advisors as it may reasonably require for the purpose of discharging
its duties or determining its rights under this Agreement and may rely and act upon the advice of such counsel or advisor. The Escrow
Agent will give written notice to the Issuer as soon as practicable that it has retained legal counsel or other advisors. The Issuer
will pay or reimburse the Escrow Agent for any reasonable fees, expenses and disbursements of such counsel or advisors.

 

(4)
In the event of any disagreement arising under the terms of this Agreement, the Escrow Agent will be entitled, at its option, to refuse
to comply with any and all demands whatsoever until the dispute is settled either by a written agreement among the Parties or by a court
of competent jurisdiction.

 

(5)
The Escrow Agent will have no duties or responsibilities except as expressly provided in this Agreement and will have no duty or responsibility
under the Policy or arising under any other agreement, including any agreement referred to in this Agreement, to which the Escrow Agent
is not a party.

 

(6)
The Escrow Agent will have the right not to act and will not be liable for refusing to act unless it has received clear and reasonable
documentation that complies with the terms of this Agreement. Such documentation must not require the exercise of any discretion or independent
judgment.

 

(7)
The Escrow Agent is authorized to cancel any share certificate delivered to it and hold such Securityholder’s escrow securities
in electronic or uncertificated form only, pending release of such securities from escrow.

 

(8)
The Escrow Agent will have no responsibility with respect to any escrow securities in respect of which no share certificate or other
evidence or electronic or uncertificated form of these securities has been delivered to it, or otherwise received by it.

 

8.7
Limitation of Liability of Escrow Agent

 

The
Escrow Agent will not be liable to any of the Parties hereunder for any action taken or omitted to be taken by it under or in connection
with this Agreement, except for losses directly, principally and immediately caused by its bad faith, willful misconduct or gross negligence.
Under no circumstances will the Escrow Agent be liable for any special, indirect, incidental, consequential, exemplary, aggravated or
punitive losses or damages hereunder, including any loss of profits, whether foreseeable or unforeseeable. Notwithstanding the foregoing
or any other provision of this Agreement, in no event will the collective liability of the Escrow Agent under or in connection with this
Agreement to any one or more Parties, except for losses directly caused by its bad faith or willful misconduct, exceed the amount of
its annual fees under this Agreement or the amount of three thousand dollars ($3,000.00), whichever amount shall be greater.

 

    	-13-

    	 

    

 

8.8
Remuneration of Escrow Agent

 

The
Issuer will pay the Escrow Agent reasonable remuneration for its services under this Agreement, which fees are subject to revision from
time to time on 30 days’ written notice. The Issuer will reimburse the Escrow Agent for its expenses and disbursements. Any amount
due under this section and unpaid 30 days after request for such payment, will bear interest from the expiration of such period at a
rate per annum equal to the then current rate charged by the Escrow Agent, payable on demand.

 

In
the event the Issuer or the Securityholders fail to pay the Escrow Agent any amounts owing to the Escrow Agent hereunder, the Escrow
Agent shall have the right not to act (including the right not to release any additional securities from escrow) and will not be liable
for refusing to act until it has been fully paid all amounts owing to it hereunder. Further, in the event the Issuer fails to pay the
Escrow Agent its reasonable remuneration for its services hereunder, the Escrow Agent shall be entitled to charge the Securityholders
for any further release of escrowed securities and shall have the right not to act (including the right not to release any additional
securities from escrow) until the Securityholders have paid such amounts to the Escrow Agent.

 

In
the event the Issuer or the Securityholders have failed to pay the amounts owing the Escrow Agent hereunder, the Escrow Agent shall not
be liable for any loss caused by a delay in the release of the escrowed securities.

 

8.9
Delivery of Exchange Bulletin

 

The
Issuer shall forthwith provide a copy of the listing bulletin of the applicable stock exchange on which the securities of the Issuer
are listed in connection with the IPO, confirmation of listing and posting for trading of the subject escrow securities or such other
relevant document to the Escrow Agent as it shall require in order to make the required releases. No duty shall rest with the Escrow
Agent to obtain this information independently nor shall it be held liable for any loss, claim, suit or action, howsoever caused by any
delay in providing this information to it.

 

PART
9 NOTICES

 

9.1
Notice to Escrow Agent

 

Documents
will be considered to have been delivered to the Escrow Agent on the next business day following the date of transmission, if delivered
by fax or e-mail, the date of delivery, if delivered by hand during normal business hours or by prepaid courier, or 5 business days after
the date of mailing, if delivered by mail, to the following:

 

Name:
TSX Trust Company

Attention:
VP Client Management

Address:
301 - 100 Adelaide Street West, Toronto, ON, M5H 4H1

Telephone
number: 1 (888) 873-8392

E-mail
address: TMXEClientManaqement@tmx.com

 

9.2
Notice to Issuer

 

Documents
will be considered to have been delivered to the Issuer on the next business day following the date of transmission, if delivered by
fax, the date of delivery, if delivered by hand during normal business hours or by prepaid courier, or 5 business days after the date
of mailing, if delivered by mail, to the following:

 

Name:
Permex Petroleum Corporation

Attention:
Mehran Ehsan, President and CEO

Address:
Suite 1290, 625 Howe St., Vancouver, BC, V6C 2T6

Fax:
1.604.674.5113

 

    	-14-

    	 

    

 

9.3
Deliveries to Securityholders

 

Documents
will be considered to have been delivered to a Securityholder on the date of delivery, if delivered by hand or by prepaid courier, or
5 business days after the date of mailing, if delivered by mail, to the address on the Issuer’s share register.

 

Any
share certificates or other evidence of a Securityholder’s escrow securities will be sent to the Securityholder’s address
on the Issuer’s share register unless the Securityholder has advised the Escrow Agent in writing otherwise at least ten business
days before the escrow securities are released from escrow. The Issuer will provide the Escrow Agent with each Securityholder’s
address as listed on the Issuer’s share register.

 

9.4
Change of Address

 

(1)
The Escrow Agent may change its address for delivery by delivering notice of the change of address to the Issuer and to each Securityholder.

 

(2)
The Issuer may change its address for delivery by delivering notice of the change of address to the Escrow Agent and to each Securityholder.

 

(3)
A Securityholder may change that Securityholder’s address for delivery by delivering notice of the change of address to the Issuer
and to the Escrow Agent.

 

9.5
Postal Interruption

 

A
Party to this Agreement will not mail a document it is required to mail under this Agreement if the Party is aware of an actual or impending
disruption of postal service.

 

PART
10 GENERAL

 

10.1
Interpretation - “holding securities”

 

When
this Agreement refers to securities that a Securityholder “holds”, it means that the Securityholder has direct or indirect
beneficial ownership of, or control or direction over, the securities.

 

10.2
Further Assurances

 

The
Parties will execute and deliver any further documents and perform any further acts reasonably requested by any of the Parties to this
Agreement which are necessary to carry out the intent of this Agreement.

 

10.3
Time

 

Time
is of the essence of this Agreement.

 

10.4
Incomplete IPO

 

If
the Issuer does not complete its IPO and has become a reporting issuer in one or more jurisdictions because it has obtained a receipt
for its IPO prospectus, this Agreement will remain in effect until the securities regulators in those jurisdictions order that the Issuer
has ceased to be a reporting issuer.

 

    	-15-

    	 

    

 

10.5
Governing Laws

 

The
laws of British Columbia (the “Principal Regulator”) and the applicable laws of Canada will govern this Agreement.

 

10.6
Jurisdiction

 

The
securities regulator in each jurisdiction where the Issuer files its IPO prospectus has jurisdiction over this Agreement and the escrow
securities.

 

10.7
Consent of Securities Regulators to Amendment

 

Except
for amendments made under Part 3, the securities regulators with jurisdiction must approve any amendment to this Agreement and will apply
mutual reliance principles in reviewing any amendments that are filed with them. Therefore, the consent of the Principal Regulator will
evidence the consent of all securities regulators with jurisdiction.

 

10.8
Counterparts

 

The
Parties may execute this Agreement by fax and in counterparts, each of which will be considered an original and all of which will be
one agreement.

 

10.9
Singular and Plural

 

Wherever
a singular expression is used in this Agreement, that expression is considered as including the plural or the body corporate where required
by the context.

 

10.10
Language

 

This
Agreement has been drawn up in the English language at the request of all Parties. Cette convention a été rédigé
en anglais] á la demande de toutes les Parties.

 

10.11
Benefit and Binding Effect

 

This
Agreement will benefit and bind the Parties and their heirs, executors, administrators, successors and permitted assigns and all persons
claiming through them as if they had been a Party to this Agreement.

 

10.12
Entire Agreement

 

This
is the entire agreement among the Parties concerning the subject matter set out in this Agreement and supersedes any and all prior understandings
and agreements.

 

10.13
Successor to Escrow Agent

 

Any
corporation with which the Escrow Agent may be amalgamated, merged or consolidated, or any corporation succeeding to the business of
the Escrow Agent will be the successor of the Escrow Agent under this Agreement without any further act on its part or on the part or
any of the Parties, provided that the successor is recognized as a transfer agent by the Canadian exchange the Issuer is listed on (or
if the Issuer is not listed on a Canadian exchange, by any Canadian exchange) and notice is given to the securities regulators with jurisdiction.

 

    	-16-

    	 

    

 

The
Parties have executed and delivered this Agreement as of the date set out above.

 

	TSX
    TRUST COMPANY	 	 
	 	 	 
	 	 	 
	Authorized
    signatory	 	 
	 	 	 
	 	 	 
	Authorized
    signatory	 	 
	 	 	 
	PERMEX
    PETROLEUM CORPORATION	 	 
	 	 	 
	 	 	 
	Authorized
    signatory	 	 
	 	 	 
	 	 	 
	Authorized
    signatory	 	 
	 	 	 
	Signed,
    sealed and delivered by	)	 
	Mina
    Ehsan in the presence of:	)	 
	 	)	 
	 	)	 
	Signature
    of Witness	)	Mina
    Ehsan
	 	)	 
	 	)	 
	Name
    of Witness	)	 
	 	)	 
	 	 	 
	Signed,
    sealed and delivered by	)	 
	Barry
    Whelan in the presence of:	)	 
	 	)	 
	 	)	 
	Signature
    of Witness	)	Barry
    Whelan
	 	)	 
	 	)	 
	Name
    of Witness	)	 
	 	)	 
	Signed,
    sealed and delivered by	)	 
	Bonnie
    Whelan in the presence of:	)	 
	 	)	 
	 	)	 
	Signature
    of Witness	)	Bonnie
    Whelan
	 	)	 
	 	)	 
	Name
    of Witness	)	 
	 	)	 

 

    	-17-

    	 

    

 

	N.A.
    ENERGY RESOURCES CORPORATION	 
	 	 
	 	 
	Authorized
    signatory	 
	 	 
	TUAREG
    CONSULTING INC.	 
	 	 
	 	 
	Authorized
    signatory	 
	 	 
	THE
    HOWARD GROUP INC.	 
	 	 
	 	 
	Authorized
    signatory	 
	(Grant
    Howard – President)	 
	 	 
	GRAVITAS
    SECURITIES INC.	 
	 	 
	 	 
	Authorized
    signatory	 

 

 

    	-18-

    	 

    

 

Schedule
“A” to Escrow Agreement

 

Securityholder

 

Name:
Mina Ehsan

 

Securities:

 

	Class
    or description	 	Number	 	Certificate(s)
    (if applicable)
	Common
    Shares	 	25,000	 	 

 

    	-19-

    	 

    

 

Securityholder

 

Name:
Barry Whelan

 

Securities:

 

	Class
    or description	 	Number	 	Certificate(s)
    (if applicable)
	Common
    Shares	 	350,000	 	 

 

    	-20-

    	 

    

 

Securityholder

 

Name:
Bonnie Whelan

 

Securities:

 

	Class
    or description	 	Number	 	Certificate(s)
    (if applicable)
	Common
    Shares	 	25,000	 	 

 

    	-21-

    	 

    

 

Securityholder

 

Name:
N.A. Energy Resources Corporation

 

Securities:

 

	Class
    or description	 	Number	 	Certificate(s)
    (if applicable)
	Common
    Shares	 	2,500,000	 	 

 

    	-22-

    	 

    

 

Securityholder

 

Name:
Tuareg Consulting Inc.

 

Securities:

 

	Class
    or description	 	Number	 	Certificate(s)
    (if applicable)
	Common
    Shares	 	250,000	 	 

 

    	-23-

    	 

    

 

Securityholder

 

Name:
The Howard Group Inc.

 

Securities:

 

	Class
    or description	 	Number	 	Certificate(s)
    (if applicable)
	Common
    Shares	 	100,000	 	 

 

    	-24-

    	 

    

 

Securityholder

 

Name:
Gravitas Securities Inc.

 

Securities:

 

	Class
    or description	 	Number	 	Certificate(s)
    (if applicable)
	Options
to purchase Common Shares
	 	700,573	 	 

 

    	-25-

    	 

    

 

Schedule
“B” to Escrow Agreement

 

Acknowledgment
and Agreement to be Bound

 

I
acknowledge that the securities listed in the attached Schedule “A” (the “escrow securities”) have been or will
be transferred to me and that the escrow securities are subject to an Escrow Agreement dated _________________ (the “Escrow Agreement”).

 

For
other good and valuable consideration, I agree to be bound by the Escrow Agreement in respect of the escrow securities, as if I were
an original signatory to the Escrow Agreement.

 

Dated
at _______________ on _______________.

 

Where
the transferee is an individual:

 

	Signed,
    sealed and delivered by	)	 
	[Transferee]
    in the presence of:	)	 
	 	)	 
	 	)	 
	Signature
    of Witness	)	[Transferee]
	 	)	 
	 	)	 
	Name
    of Witness	)	 
	 	)	 

 

Where
the transferee is not an individual:

 

	[Transferee]	 
	 	 
	 	 
	Authorized
    signatory	 
	 	 
	 	 
	Authorized
    signatory	 

 

    	-26-Exhibit
10.3

 

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (this “Agreement”) is made and entered into as of March 28, 2022, between Permex Petroleum
Corporation, a British Columbia corporation (the “Company”), and each of the several purchasers signatory hereto (each such
purchaser, a “Purchaser” and, collectively, the “Purchasers”).

 

This
Agreement is made pursuant to the Subscription Agreement, dated as of the date hereof, between the Company and each Purchaser (the “Purchase
Agreement”).

 

The
Company and each Purchaser hereby agrees as follows:

 

1. Definitions.

 

Capitalized
terms used and not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the
Purchase Agreement.

 

As
used in this Agreement, the following terms shall have the following meanings:

 

“Advice”
shall have the meaning set forth in Section 6(d).

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control
with a Person, as such term is used in and construed under Rule 405 under the Exchange Act.

 

“Commission”
means the United States Securities and Exchange Commission.

 

“Effectiveness
Date” means, with respect to the Initial Registration Statement required to be filed hereunder, the 60th calendar day following
the date that the Company files the Initial Registration Statement (the “Trigger Date”), (or in the event of a “full
review” by the Commission, the 90th calendar day following the Trigger Date) and with respect to any additional Registration Statements
which may be required pursuant to Section 2(c) or Section 3(c), the 30th calendar day following the date on which an additional Registration
Statement is required to be filed hereunder (or, in the event of a “full review” by the Commission, the 90th calendar day
following the date such additional Registration Statement is required to be filed hereunder); provided, however, that in the event the
Company is notified by the Commission that one or more of the above Registration Statements will not be reviewed or is no longer subject
to further review and comments, the Effectiveness Date as to such Registration Statement shall be the 10th Trading Day following the
date on which the Company is so notified if such date precedes the dates otherwise required above; provided, further, if such Effectiveness
Date falls on a day that is not a Trading Day, then the Effectiveness Date shall be the next succeeding Trading Day.

 

“Effectiveness
Period” shall have the meaning set forth in Section 2(a).

 

“Event”
shall have the meaning set forth in Section 2(d).

 

“Event
Date” shall have the meaning set forth in Section 2(d).

 

    	-1-

     

    

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“Filing
Date” means, with respect to the Initial Registration Statement required hereunder, the 45th calendar day following the date
hereof and, with respect to any additional Registration Statements which may be required pursuant to Section 2(c) or Section 3(c), the
earliest practical date on which the Company is permitted by SEC Guidance to file such additional Registration Statement related to the
Registrable Securities.

 

“Holder”
or “Holders” means the holder or holders, as the case may be, from time to time of Registrable Securities.

 

“Indemnified
Party” shall have the meaning set forth in Section 5(c).

 

“Indemnifying
Party” shall have the meaning set forth in Section 5(c).

 

“Initial
Registration Statement” means the initial Registration Statement filed pursuant to this Agreement.

 

“Person”
means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability
company, joint stock company, government (or agency or subdivision thereof) or other entity of any kind.

 

“Losses”
shall have the meaning set forth in Section 5(a).

 

“Plan
of Distribution” shall have the meaning set forth in Section 2(a).

 

“Proceeding”
means an action, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such
as a deposition), whether commenced or threatened.

 

“Prospectus”
means the prospectus included in a Registration Statement (including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration statement in reliance upon Rule 430A promulgated by the
Commission pursuant to the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Securities covered by a Registration Statement, and all other amendments and supplements to
the Prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference
in such Prospectus.

 

    	-2-

     

    

 

“Registrable
Securities” means, as of any date of determination, (a) the Shares issued or issuable to the Purchasers in accordance with
the terms of the Purchase Agreement; (b) all Warrant Shares then issued and issuable to the Purchasers upon exercise of the Warrants
(assuming on such date the Warrants are exercised in full without regard to any exercise limitations therein), (c) any additional Common
Shares issued and issuable to the Purchasers in connection with any anti-dilution provisions in the Warrants (in each case, without giving
effect to any limitations on exercise set forth in the Warrants) and (d) any securities issued or then issuable to the Purchasers upon
any stock split, dividend or other distribution, recapitalization or similar event with respect to the foregoing; provided, however,
that any such Registrable Securities shall cease to be Registrable Securities (and the Company shall not be required to maintain the
effectiveness of any, or file another, Registration Statement hereunder with respect thereto) for so long as (a) a Registration Statement
with respect to the sale of such Registrable Securities is declared effective by the Commission under the Securities Act and such Registrable
Securities have been disposed of by the Holder in accordance with such effective Registration Statement or (b) such Registrable Securities
have been previously sold in accordance with Rule 144, or (c) such securities become eligible for resale without volume or manner-of-sale
restrictions and without current public information pursuant to Rule 144 as set forth in a written opinion letter to such effect, addressed,
delivered and acceptable to the Transfer Agent and the affected Holders (assuming that such securities were at no time held by any Affiliate
of the Company, as reasonably determined by the Company, upon the advice of counsel to the Company).

 

“Registration
Statement” means any registration statement required to be filed hereunder pursuant to Section 2(a) and any additional registration
statements contemplated by Section 2(c) or Section 3(c), including (in each case) the Prospectus, amendments and supplements to any such
registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated
by reference or deemed to be incorporated by reference in any such registration statement.

 

“Rule
144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpretated
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“Rule
415” means Rule 415 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“Rule
424” means Rule 424 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted
from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect
as such Rule.

 

“Selling
Stockholder Questionnaire” shall have the meaning set forth in Section 3(a).

 

“SEC
Guidance” means (i) any publicly-available written or oral guidance of the Commission staff, or any comments, requirements
or requests of the Commission staff and (ii) the Securities Act.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Trading
Day” means a day on which the principal Trading Market in the United States is open for trading.

 

    	-3-

     

    

 

“Trading
Market” means any of the following markets or exchanges on which the Common Shares is listed or quoted for trading on the date
in question: the Canadian Securities Exchange, the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global
Select Market, or the New York Stock Exchange, OTCQB or OTCQX (or any successors to any of the foregoing).

 

“Transfer
Agent” means TSX Trust Company, the current transfer agent of the Company and any successor transfer agent of the Company.

 

2. Shelf
Registration.

 

(a) On
or prior to each Filing Date, the Company shall prepare and file with the Commission a Registration Statement covering the resale of
all of the Registrable Securities that are not then registered on an effective Registration Statement for an offering to be made on a
continuous basis pursuant to Rule 415. Each Registration Statement filed hereunder shall be on Form F-1 (except if the Company is then
eligible to register for resale the Registrable Securities on Form F-3, in which case such registration shall be on Form F-3) and shall
contain (unless otherwise directed by at least 85% in interest of the Holders) substantially the “Plan of Distribution” attached
hereto as Annex A and substantially the “Selling Stockholder” section attached hereto as Annex B; provided, however, that
no Holder shall be required to be named as an “underwriter” without such Holder’s express prior written consent. Subject
to the terms of this Agreement, the Company shall use its best efforts to cause a Registration Statement filed under this Agreement (including,
without limitation, under Section 3(c)) to be declared effective under the Securities Act as promptly as possible after the filing thereof,
but in any event no later than the applicable Effectiveness Date, and shall use its best efforts to keep such Registration Statement
continuously effective under the Securities Act until the earlier of (i) the date that all Registrable Securities covered by such Registration
Statement have been sold, thereunder or pursuant to Rule 144 or (ii) the date that all Registerable Securities covered by such Registration
Statement may be sold without the volume or manner of sale restrictions pursuant to Rule 144 and without the requirement for the Company
to be in compliance with the current public information requirement under Rule 144, as determined by the counsel to the Company pursuant
to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the affected Holders, or (iii) the date
that is five years from the date of this agreement (the “Effectiveness Period”). The Company shall telephonically request
effectiveness of a Registration Statement as of 5:00 p.m. Eastern Time on a Trading Day. The Company shall contemporaneously notify the
Holders via facsimile or by email of the effectiveness of a Registration Statement on the same Trading Day that the Company telephonically
confirms effectiveness with the Commission, which shall be the date requested for effectiveness of such Registration Statement. The Company
shall, by 4:30 p.m. Eastern Time on the Trading Day after the effective date of such Registration Statement file a final Prospectus with
the Commission as required by Rule 424. Failure to so notify the Holder within one (1) Trading Day of such notification of effectiveness
or failure to file a final Prospectus as foresaid shall be deemed an Event under Section 2(d).

 

    	-4-

     

    

 

(b) Notwithstanding
the registration obligations set forth in Section 2(a), if the staff of the Commission informs the Company that all of the Registrable
Securities cannot, as a result of the application of Rule 415, be registered for resale as a secondary offering on a single registration
statement, the Company shall promptly inform each of the Holders thereof and use its commercially reasonable efforts to file amendments
to the Initial Registration Statement as required by the staff of the Commission, covering the maximum number of Registrable Securities
permitted to be registered by the staff of the Commission, on Form F-1 or such other form available to register for resale the Registrable
Securities as a secondary offering, subject to the provisions of Section 2(e), with respect to filing on Form F1 or other appropriate
form; provided, however, that prior to filing such amendment, the Company shall use diligent efforts to advocate with the staff of the
Commission for the registration of all of the Registrable Securities in accordance with the SEC Guidance, including without limitation,
Compliance and Disclosure Interpretation 612.09.

 

(c) Notwithstanding
any other provision of this Agreement, if the staff of the Commission or any SEC Guidance sets forth a limitation on the number of Registrable
Securities permitted to be registered on a particular Registration Statement as a secondary offering (and notwithstanding that the Company
used diligent efforts to advocate with the staff of the Commission for the registration of all or a greater portion of Registrable Securities),
unless otherwise directed in writing by a Holder as to its Registrable Securities, the number of Registrable Securities to be registered
on such Registration Statement will be reduced as follows:

 

(d) First,
the Company shall reduce or eliminate any securities to be included other than Registrable Securities;

 

(e) Second,
the Company shall reduce Registrable Securities represented by Warrant Shares (applied, in the case that some Warrant Shares may be registered,
to the Holders on a pro rata basis based on the total number of unregistered Warrant Shares held by such Holders); and

 

(f) Third,
the Company shall reduce Registrable Securities represented by the Shares on a pro rata basis based on the total number of unregistered
Shares held by such Holders).

 

In
the event of a cutback hereunder, the Company shall give the Holder at least five (5) Trading Days prior written notice along with the
calculations as to such Holder’s allotment. In the event the Company amends the Initial Registration Statement in accordance with
the foregoing, the Company will use its best efforts to file with the Commission, as promptly as allowed by the staff of the Commission
or SEC Guidance provided to the Company or to registrants of securities in general, one or more registration statements on Form F-1 or
such other form available to register for resale those Registrable Securities that were not registered for resale on the Initial Registration
Statement, as amended.

 

    	-5-

     

    

 

(g) If:
(i) the Initial Registration Statement is not filed on or prior to its Filing Date (if the Company files the Initial Registration Statement
without affording the Holders the opportunity to review and comment on the same as required by Section 3(a) herein, the Company shall
be deemed to have not satisfied this clause (i)) or (ii) the Company fails to file with the Commission a request for acceleration of
a Registration Statement in accordance with Rule 461 promulgated by the Commission pursuant to the Securities Act, within ten Trading
Days of the date that the Company is notified (orally or in writing, whichever is earlier) by the staff of the Commission that such Registration
Statement will not be “reviewed” or will not be subject to further review, or (iii) prior to the effective date of a Registration
Statement, the Company fails to file a pre-effective amendment and otherwise respond in writing to comments made by the staff of the
Commission in respect of such Registration Statement within twenty calendar days after the receipt of comments by or notice from the
staff of the Commission that such amendment is required in order for such Registration Statement to be declared effective, or (iv) a
Registration Statement registering for resale all of the Registrable Securities is not declared effective by the Commission by the Effectiveness
Date of the Initial Registration Statement, or (v) after the effective date of a Registration Statement, such Registration Statement
ceases for any reason to remain continuously effective as to all Registrable Securities included in such Registration Statement, or the
Holders are otherwise not permitted to utilize the Prospectus therein to resell such Registrable Securities, for more than ten (10) consecutive
calendar days or more than an aggregate of fifteen (15) calendar days (which need not be consecutive calendar days) during any 12-month
period (any such failure or breach being referred to as an “Event”, and for purposes of clauses (i) and (iv), the date on
which such Event occurs, and for the purpose of clause (ii) the date on which such ten Trading Day period is exceeded, and for purposes
of clause (iii) the date which such twenty calendar day period is exceed, and for purposes of clause (v) the date on which such ten (10)
or fifteen (15) calendar day period, as applicable, is exceeded as applicable, being referred to as “Event Date”), then,
in addition to any other rights the Holders may have hereunder or under applicable law, on each such Event Date and on each monthly anniversary
of each such Event Date (if the applicable Event shall not have been cured by such date) until the applicable Event is cured, the Company
shall pay to each Holder an amount in cash, as partial liquidated damages and not as a penalty, equal to the product of 2.0% multiplied
by the aggregate Subscription Amount paid by such Holder pursuant to the Purchase Agreement. If the Company fails to pay any partial
liquidated damages pursuant to this Section in full within ten (10) calendar days after the date payable, the Company will pay interest
thereon at a rate of 10% per annum (or such lesser maximum amount that is permitted to be paid by applicable law) to the Holder, accruing
daily from the date such partial liquidated damages are due until such amounts, plus all such interest thereon, are paid in full. The
partial liquidated damages pursuant to the terms hereof shall apply on a daily pro rata basis for any portion of a month prior to the
cure of an Event.

 

(h) (e)
[Reserved].

 

(i) (f)
Notwithstanding anything to the contrary contained herein, in no event shall the Company be permitted to name any Holder or affiliate
of a Holder as any underwriter without the prior written consent of such Holder.

 

    	-6-

     

    

 

3. Registration
Procedures.

 

In
connection with the Company’s registration obligations hereunder, the Company shall:

 

(a) Not
less than five (5) Trading Days prior to the filing of each Registration Statement and not less than one (1) Trading Day prior to the
filing of any related Prospectus or any amendment or supplement thereto, the Company shall

 

(i) furnish
to each Holder copies of all such documents proposed to be filed, which documents will be subject to the review of such Holders, and
(ii) cause its officers and directors, counsel and independent registered public accountants to respond to such inquiries as shall be
necessary, in the reasonable opinion of respective counsel to each Holder, to conduct a reasonable investigation within the meaning of
the Securities Act. The Company shall not file a Registration Statement or any such Prospectus or any amendments or supplements thereto
to which any Holder shall reasonably object in good faith, provided that, the Company is notified of such objection in writing no later
than five (5) Trading Days after the Holders have been so furnished copies of a Registration Statement or one (1) Trading Day after the
Holders have been so furnished copies of any related Prospectus or amendments or supplements thereto. Each Holder agrees to furnish to
the Company a completed questionnaire in the form attached to this Agreement as Annex B (a “Selling Stockholder Questionnaire”)
on a date that is not less than two (2) Trading Days prior to the Filing Date or by the end of the fourth (4th) Trading Day following
the date on which such Holder receives draft materials in accordance with this Section.

 

(b) (i)
Prepare and file with the Commission such amendments, including post-effective amendments, to a Registration Statement and the Prospectus
used in connection therewith as may be necessary to keep a Registration Statement continuously effective as to the applicable Registrable
Securities for the Effectiveness Period and prepare and file with the Commission such additional Registration Statements in order to
register for resale under the Securities Act all of the Registrable Securities, (ii) cause the related Prospectus to be amended or supplemented
by any required Prospectus supplement (subject to the terms of this Agreement), and, as so supplemented or amended, to be filed pursuant
to Rule 424, (iii) respond as promptly as reasonably possible to any comments received from the Commission with respect to a Registration
Statement or any amendment thereto and provide as promptly as reasonably possible to the Holders true and complete copies of all correspondence
from and to the Commission relating to a Registration Statement (provided that, the Company shall excise any information contained therein
which would constitute material non-public information regarding the Company or any of its Subsidiaries), and (iv) comply in all material
respects with the applicable provisions of the Securities Act and the Exchange Act with respect to the disposition of all Registrable
Securities covered by a Registration Statement during the applicable period in accordance (subject to the terms of this Agreement) with
the intended methods of disposition by the Holders thereof set forth in such Registration Statement as so amended or in such Prospectus
as so supplemented.

 

(c) If
during the Effectiveness Period, the number of Registrable Securities at any time exceeds 100% of the number of Common Shares then registered
in a Registration Statement, then the Company shall file as soon as reasonably practicable, but in any case prior to the applicable Filing
Date, an additional Registration Statement covering the resale by the Holders of not less than the number of such Registrable Securities.

 

    	-7-

     

    

 

(d) Notify
the Holders of Registrable Securities to be sold (which notice shall, pursuant to clauses (iii) through (vi) hereof, be accompanied by
an instruction to suspend the use of the Prospectus until the requisite changes have been made) as promptly as reasonably possible (and,
in the case of (i)(A) below, not less than one (1) Trading Day prior to such filing) and (if requested by any such Person) confirm such
notice in writing no later than one (1) Trading Day following the day (i)(A) when a Prospectus or any Prospectus supplement or post-effective
amendment to a Registration Statement is proposed to be filed, (B) when the Commission notifies the Company whether there will be a “review”
of such Registration Statement and whenever the Commission comments in writing on such Registration Statement, and (C) with respect to
a Registration Statement or any post-effective amendment, when the same has become effective, (ii) of any request by the Commission or
any other federal or state governmental authority for amendments or supplements to a Registration Statement or Prospectus or for additional
information, (iii) of the issuance by the Commission or any other federal or state governmental authority of any stop order suspending
the effectiveness of a Registration Statement covering any or all of the Registrable Securities or the initiation of any Proceedings
for that purpose, (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any jurisdiction, or the initiation or threatening of any Proceeding
for such purpose, (v) of the occurrence of any event or passage of time that makes the financial statements included in a Registration
Statement ineligible for inclusion therein or any statement made in a Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material respect or that requires any revisions to a Registration Statement,
Prospectus or other documents so that, in the case of a Registration Statement or the Prospectus, as the case may be, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading, and (vi) of the occurrence or existence of any pending
corporate development with respect to the Company that the Company believes may be material and that, in the determination of the Company,
makes it not in the best interest of the Company to allow continued availability of a Registration Statement or Prospectus, provided,
however, in no event shall any such notice contain any information which would constitute material, non-public information regarding
the Company or any of its Subsidiaries.

 

(e) Use
its best efforts to avoid the issuance of, or, if issued, obtain the withdrawal of (i) any order stopping or suspending the effectiveness
of a Registration Statement, or (ii) any suspension of the qualification (or exemption from qualification) of any of the Registrable
Securities for sale in any jurisdiction, at the earliest practicable moment.

 

(f) Furnish
to each Holder, without charge, at least one conformed copy of each such Registration Statement and each amendment thereto, including
financial statements and schedules, all documents incorporated or deemed to be incorporated therein by reference to the extent requested
by such Person, and all exhibits to the extent requested by such Person (including those previously furnished or incorporated by reference)
promptly after the filing of such documents with the Commission; provided, that any such item which is available on the EDGAR system
(or successor thereto) need not be furnished in physical form.

 

    	-8-

     

    

 

(g) Subject
to the terms of this Agreement, the Company hereby consents to the use of such Prospectus and each amendment or supplement thereto by
each of the selling Holders in connection with the offering and sale of the Registrable Securities covered by such Prospectus and any
amendment or supplement thereto, except after the giving of any notice pursuant to Section 3(d).

 

(h) Prior
to any resale of Registrable Securities by a Holder, use its commercially reasonable efforts to register or qualify or cooperate with
the selling Holders in connection with the registration or qualification (or exemption from the Registration or qualification) of such
Registrable Securities for the resale by the Holder under the securities or Blue Sky laws of such jurisdictions within the United States
as any Holder reasonably requests in writing, to keep each registration or qualification (or exemption therefrom) effective during the
Effectiveness Period and to do any and all other acts or things reasonably necessary to enable the disposition in such jurisdictions
of the Registrable Securities covered by each Registration Statement; provided, that, the Company shall not be required to qualify generally
to do business in any jurisdiction where it is not then so qualified, subject the Company to any material tax in any such jurisdiction
where it is not then so subject or file a general consent to service of process in any such jurisdiction.

 

(i) If
requested by a Holder, cooperate with such Holder to facilitate the timely preparation and delivery of certificates representing Registrable
Securities to be delivered to a transferee pursuant to a Registration Statement, which certificates shall be free, to the extent permitted
by the Purchase Agreement, of all restrictive legends, and to enable such Registrable Securities to be in such denominations and registered
in such names as any such Holder may request.

 

(j) Upon
the occurrence of any event contemplated by Section 3(d), as promptly as reasonably possible under the circumstances taking into account
the Company’s good faith assessment of any adverse consequences to the Company and its stockholders of the premature disclosure
of such event, prepare a supplement or amendment, including a post-effective amendment, to a Registration Statement or a supplement to
the related Prospectus or any document incorporated or deemed to be incorporated therein by reference, and file any other required document
so that, as thereafter delivered, neither a Registration Statement nor such Prospectus will contain an untrue statement of a material
fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances
under which they were made, not misleading. If the Company notifies the Holders in accordance with clauses (iii) through (vi) of Section
3(d) above to suspend the use of any Prospectus until the requisite changes to such Prospectus have been made, then the Holders shall
suspend use of such Prospectus.

 

The
Company will use its best efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company
shall be entitled to exercise its right under this Section 3(j) to suspend the availability of a Registration Statement and Prospectus,
subject to the payment of partial liquidated damages otherwise required pursuant to Section 2(d), for a period not to exceed 60 calendar
days (which need not be consecutive days) in any 12-month period.

 

    	-9-

     

    

 

(k) Otherwise
use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission under the Securities Act and
the Exchange Act, including, without limitation, Rule 172 under the Securities Act, file any final Prospectus, including any supplement
or amendment thereof, with the Commission pursuant to Rule 424 under the Securities Act, promptly inform the Holders in writing if, at
any time during the Effectiveness Period, the Company does not satisfy the conditions specified in Rule 172 and, as a result thereof,
the Holders are required to deliver a Prospectus in connection with any disposition of Registrable Securities and take such other actions
as may be reasonably necessary to facilitate the registration of the Registrable Securities hereunder.

 

(l) Intentionally
Omitted.

 

(m) The
Company may require each selling Holder to furnish to the Company a certified statement as to the number of Common Shares beneficially
owned by such Holder and, if required by the Commission, the natural persons thereof that have voting and dispositive control over the
shares. During any periods that the Company is unable to meet its obligations hereunder with respect to the registration of the Registrable
Securities solely because any Holder fails to furnish such information within three Trading Days of the Company’s request, any
liquidated damages that are accruing at such time as to such Holder only shall be tolled and any Event that may otherwise occur solely
because of such delay shall be suspended as to such Holder only, until such information is delivered to the Company.

 

4. Registration
Expenses. All fees and expenses incident to the performance of or compliance with, this Agreement by the Company shall be borne by
the Company whether or not any Registrable Securities are sold pursuant to a Registration Statement.

 

The
fees and expenses referred to in the foregoing sentence shall include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses of the Company’s counsel and independent registered public accountants) (A) with respect
to filings made with the Commission, (B) with respect to filings required to be made with any Trading Market on which the Common Shares
is then listed for trading, and (C) in compliance with applicable state securities or Blue Sky laws reasonably agreed to by the Company
in writing (including, without limitation, fees and disbursements of counsel for the Company in connection with Blue Sky qualifications
or exemptions of the Registrable Securities), (ii) printing expenses (including, without limitation, expenses of printing certificates
for Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv) fees and disbursements of counsel for the Company,
(v) Securities Act liability insurance, if the Company so desires such insurance, and (vi) fees and expenses of all other Persons retained
by the Company in connection with the consummation of the transactions contemplated by this Agreement. In addition, the Company shall
be responsible for all of its internal expenses incurred in connection with the consummation of the transactions contemplated by this
Agreement (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties),
the expense of any annual audit and the fees and expenses incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder. In no event shall the Company be responsible for any broker or similar commissions of any
Holder or, except to the extent provided for in the Transaction Documents, any legal fees or other costs of the Holders.

 

    	-10-

     

    

 

5. Indemnification.

 

(a) Indemnification
by the Company. The Company shall, notwithstanding any termination of this Agreement, indemnify and hold harmless each Holder, the
officers, directors, members, partners, agents, brokers (including brokers who offer and sell Registrable Securities as principal as
a result of a pledge or any failure to perform under a margin call of Common Shares), investment advisors and employees (and any other
Persons with a functionally equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title)
of each of them, each Person who controls any such Holder (within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act) and the officers, directors, members, stockholders, partners, agents and employees (and any other Persons with a functionally
equivalent role of a Person holding such titles, notwithstanding a lack of such title or any other title) of each such controlling Person,
to the fullest extent permitted by applicable law, from and against any and all losses, claims, damages, liabilities, costs (including,
without limitation, reasonable attorneys’ fees) and expenses (collectively, “Losses”), as incurred, arising out of
or relating to (1) any untrue or alleged untrue statement of a material fact contained in a Registration Statement, any Prospectus or
any form of prospectus or in any amendment or supplement thereto or in any preliminary prospectus, or arising out of or relating to any
omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein (in the case
of any Prospectus or supplement thereto, in light of the circumstances under which they were made) not misleading or (2) any violation
or alleged violation by the Company of the Securities Act, the Exchange Act or any state securities law, or any rule or regulation thereunder,
in connection with the performance of its obligations under this Agreement, except to the extent, but only to the extent, that (i) such
untrue statements or omissions are based solely upon information regarding such Holder furnished in writing to the Company by such Holder
expressly for use therein, or to the extent that such information relates to such Holder or such Holder’s proposed method of distribution
of Registrable Securities and was reviewed and expressly approved in writing by such Holder expressly for use in a Registration Statement,
such Prospectus or in any amendment or supplement thereto (it being understood that the Holder has approved Annex A hereto for this purpose)
or (ii) in the case of an occurrence of an event of the type specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated,
defective or otherwise unavailable Prospectus after the Company has notified such Holder in writing that the Prospectus is outdated,
defective or otherwise unavailable for use by such Holder and prior to the receipt by such Holder of the Advice contemplated in Section
6(d). The Company shall notify the Holders promptly of the institution, threat or assertion of any Proceeding arising from or in connection
with the transactions contemplated by this Agreement of which the Company is aware. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such indemnified person and shall survive the transfer of any Registrable Securities
by any of the Holders in accordance with Section 6(h).

 

    	-11-

     

    

 

(b) Indemnification
by Holders. Each Holder shall, severally and not jointly, indemnify and hold harmless the Company, its directors, officers, agents
and employees, each Person who controls the Company (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange
Act), and the directors, officers, agents or employees of such controlling Persons, to the fullest extent permitted by applicable law,
from and against all Losses, as incurred, to the extent arising out of or based solely upon: any untrue or alleged untrue statement of
a material fact contained in any Registration Statement, any Prospectus, or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or relating to any omission or alleged omission of a material fact required to be stated therein or necessary
to make the statements therein (in the case of any Prospectus or supplement thereto, in light of the circumstances under which they were
made) not misleading (i) to the extent, but only to the extent, that such untrue statement or omission is contained in any information
so furnished in writing by such Holder to the Company expressly for inclusion in such Registration Statement or such Prospectus or (ii)
to the extent, but only to the extent, that such information relates to such Holder’s information provided in the Selling Stockholder
Questionnaire or the proposed method of distribution of Registrable Securities and was reviewed and expressly approved in writing by
such Holder expressly for use in a Registration Statement (it being understood that the Holder has approved Annex A hereto for this purpose),
such Prospectus or in any amendment or supplement thereto. In no event shall the liability of a selling Holder be greater in amount than
the dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and
the amount of any damages such Holder has otherwise been required to pay by reason of such untrue statement or omission) received by
such Holder upon the sale of the Registrable Securities included in the Registration Statement giving rise to such indemnification obligation.

 

(c) Conduct
of Indemnification Proceedings. If any Proceeding shall be brought or asserted against any Person entitled to indemnity hereunder
(an “Indemnified Party”), such Indemnified Party shall promptly notify the Person from whom indemnity is sought (the “Indemnifying
Party”) in writing, and the Indemnifying Party shall have the right to assume the defense thereof, including the employment of
counsel reasonably satisfactory to the Indemnified Party and the payment of all fees and expenses incurred in connection with defense
thereof; provided, that, the failure of any Indemnified Party to give such notice shall not relieve the Indemnifying Party of its obligations
or liabilities pursuant to this Agreement, except (and only) to the extent that it shall be finally determined by a court of competent
jurisdiction (which determination is not subject to appeal or further review) that such failure shall have materially and adversely prejudiced
the Indemnifying Party.

 

    	-12-

     

    

 

An
Indemnified Party shall have the right to employ separate counsel in any such Proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such Indemnified Party or Parties unless: (1) the Indemnifying Party
has agreed in writing to pay such fees and expenses, (2) the Indemnifying Party shall have failed promptly to assume the defense of such
Proceeding and to employ counsel reasonably satisfactory to such Indemnified Party in any such Proceeding, or (3) the named parties to
any such Proceeding (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, and counsel to
the Indemnified Party shall reasonably believe that a material conflict of interest is likely to exist if the same counsel were to represent
such Indemnified Party and the Indemnifying Party (in which case, if such Indemnified Party notifies the Indemnifying Party in writing
that it elects to employ separate counsel at the expense of the Indemnifying Party, the Indemnifying Party shall not have the right to
assume the defense thereof and the reasonable fees and expenses of no more than one separate counsel shall be at the expense of the Indemnifying
Party). The Indemnifying Party shall not be liable for any settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld or delayed. No Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending Proceeding in respect of which any Indemnified Party is a party, unless such settlement includes
an unconditional release of such Indemnified Party from all liability on claims that are the subject matter of such Proceeding.

 

Subject
to the terms of this Agreement, all reasonable fees and expenses of the Indemnified Party (including reasonable fees and expenses to
the extent incurred in connection with investigating or preparing to defend such Proceeding in a manner not inconsistent with this Section)
shall be paid to the Indemnified Party, as incurred, within ten Trading Days of written notice thereof to the Indemnifying Party; provided,
that, the Indemnified Party shall promptly reimburse the Indemnifying Party for that portion of such fees and expenses applicable to
such actions for which such Indemnified Party is finally determined by a court of competent jurisdiction (which determination is not
subject to appeal or further review) not to be entitled to indemnification hereunder.

 

(d) Contribution.
If the indemnification under Section 5(a) or 5(b) is unavailable to an Indemnified Party or insufficient to hold an Indemnified Party
harmless for any Losses, then each Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party, in such
proportion as is appropriate to reflect the relative fault of the Indemnifying Party and Indemnified Party in connection with the actions,
statements or omissions that resulted in such Losses as well as any other relevant equitable considerations. The relative fault of such
Indemnifying Party and Indemnified Party shall be determined by reference to, among other things, whether any action in question, including
any untrue or alleged untrue statement of a material fact or omission or alleged omission of a material fact, has been taken or made
by, or relates to information supplied by, such Indemnifying Party or Indemnified Party, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such action, statement or omission. The amount paid or payable by a party
as a result of any Losses shall be deemed to include, subject to the limitations set forth in this Agreement, any reasonable attorneys’
or other fees or expenses incurred by such party in connection with any Proceeding to the extent such party would have been indemnified
for such fees or expenses if the indemnification provided for in this Section was available to such party in accordance with its terms.

 

    	-13-

     

    

 

The
parties hereto agree that it would not be just and equitable if contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account the equitable considerations referred to in the immediately
preceding paragraph. In no event shall the contribution obligation of a Holder of Registrable Securities be greater in amount than the
dollar amount of the proceeds (net of all expenses paid by such Holder in connection with any claim relating to this Section 5 and the
amount of any damages such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission) received by it upon the sale of the Registrable Securities giving rise to such contribution obligation.

 

The
indemnity and contribution agreements contained in this Section are in addition to any liability that the Indemnifying Parties may have
to the Indemnified Parties.

 

6. Miscellaneous.

 

(a) Remedies.
In the event of a breach by the Company or by a Holder of any of their respective obligations under this Agreement, each Holder or the
Company, as the case may be, in addition to being entitled to exercise all rights granted by law and under this Agreement, including
recovery of damages, shall be entitled to specific performance of its rights under this Agreement. Each of the Company and each Holder
agrees that monetary damages would not provide adequate compensation for any losses incurred by reason of a breach by it of any of the
provisions of this Agreement and hereby further agrees that, in the event of any action for specific performance in respect of such breach,
it shall not assert or shall waive the defense that a remedy at law would be adequate.

 

(b) No
Piggyback on Registrations; Prohibition on Filing Other Registration Statements. Neither the Company nor any of its security holders
(other than the Holders in such capacity pursuant hereto and the Placement Agent with respect to the Common Shares underlying the warrants
issued to the Placement Agent) may include securities of the Company in any Registration Statements other than the Registrable Securities.
The Company shall not file any other public registration statements until all Registrable Securities are registered pursuant to a Registration
Statement that is declared effective by the Commission, provided that this Section 6(b) shall not prohibit the Company from filing amendments
to registration statements filed prior to the date of this Agreement so long as no new securities are registered on any such existing
registration statements.

 

(c) [Reserved]

 

(d) Discontinued
Disposition. By its acquisition of Registrable Securities, each Holder agrees that, upon receipt of a notice from the Company of
the occurrence of any event of the kind described in Section 3(d)(iii) through (vi), such Holder will forthwith discontinue disposition
of such Registrable Securities under a Registration Statement until it is advised in writing (the “Advice”) by the Company
that the use of the applicable Prospectus (as it may have been supplemented or amended) may be resumed. The Company will use its best
efforts to ensure that the use of the Prospectus may be resumed as promptly as is practicable. The Company agrees and acknowledges that
any periods during which the Holder is required to discontinue the disposition of the Registrable Securities hereunder shall be subject
to the provisions of Section 2(d).

 

    	-14-

     

    

 

(e) Piggy-Back
Registrations. If, at any time during the Effectiveness Period, there is not an effective Registration Statement covering all of
the Registrable Securities and the Company shall determine to prepare and file with the Commission a registration statement relating
to an offering for its own account or the account of others under the Securities Act of any of its equity securities, other than on Form
F-4 or Form S-8 (each as promulgated under the Securities Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity securities issuable in connection with the Company’s stock
option or other employee benefit plans, then the Company shall deliver to each Holder a written notice of such determination and, if
within forty-five (45) days after the date of the delivery of such notice, any such Holder shall so request in writing, the Company shall
include in such registration statement all or any part of such Registrable Securities such Holder requests to be registered; provided,
however, that the Company shall not be required to register any Registrable Securities pursuant to this Section 6(e) that are eligible
for resale pursuant to Rule 144 (without volume restrictions or current public information requirements) promulgated by the Commission
pursuant to the Securities Act or that are the subject of a then effective Registration Statement that is available for resales or other
dispositions by such Holder.

 

(f) Amendments
and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be given, unless the same shall be in writing and signed by
the Company and the Holders of 51% or more of the then outstanding Registrable Securities (for purposes of clarification, this includes
any Registrable Securities issuable upon exercise or conversion of any Security), provided that, if any amendment, modification or waiver
disproportionately and adversely impacts a Holder (or group of Holders), the consent of such disproportionately impacted Holder (or group
of Holders) shall be required. If a Registration Statement does not register all of the Registrable Securities pursuant to a waiver or
amendment done in compliance with the previous sentence, then the number of Registrable Securities to be registered for each Holder shall
be reduced pro rata among all Holders and each Holder shall have the right to designate which of its Registrable Securities shall be
omitted from such Registration Statement. Notwithstanding the foregoing, a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of a Holder or some Holders and that does not directly or indirectly affect
the rights of other Holders may be given only by such Holder or Holders of all of the Registrable Securities to which such waiver or
consent relates; provided, however, that the provisions of this sentence may not be amended, modified, or supplemented except in accordance
with the provisions of the first sentence of this Section 6(f). No consideration shall be offered or paid to any Person to amend or consent
to a waiver or modification of any provision of this Agreement unless the same consideration also is offered to all of the parties to
this Agreement.

 

(g) Notices.
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be delivered as set forth
in the Purchase Agreement.

 

(h) Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns of each of the
parties and shall inure to the benefit of each Holder. The Company may not assign (except by merger) its rights or obligations hereunder
without the prior written consent of all of the Holders of the then outstanding Registrable Securities. Each Holder may assign their
respective rights hereunder to transferees of Registrable Securities.

 

    	-15-

     

    

 

(i) No
Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or
any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would
have the effect of impairing the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. Except
as set forth on Schedule 6(i), neither the Company nor any of its Subsidiaries has previously entered into any agreement granting any
registration rights with respect to any of its securities to any Person that have not been satisfied in full.

 

(j) Execution
and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered
one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party,
it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission
or by email delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party
executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

 

(k) Governing
Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be determined in
accordance with the provisions of the Purchase Agreement.

 

(l) Cumulative
Remedies. The remedies provided herein are cumulative and not exclusive of any other remedies provided by law.

 

(m) Severability.
If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal,
void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force
and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts
to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision,
covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining
terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

 

(n) Headings.
The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall not be deemed to limit or
affect any of the provisions hereof.

 

(o) Independent
Nature of Holders’ Obligations and Rights. The obligations of each Holder hereunder are several and not joint with the obligations
of any other Holder hereunder, and no Holder shall be responsible in any way for the performance of the obligations of any other Holder
hereunder. Nothing contained herein or in any other agreement or document delivered at any closing, and no action taken by any Holder
pursuant hereto or thereto, shall be deemed to constitute the Holders as a partnership, an association, a joint venture or any other
kind of group or entity, or create a presumption that the Holders are in any way acting in concert or as a group or entity with respect
to such obligations or the transactions contemplated by this Agreement or any other matters, and the Company acknowledges that the Holders
are not acting in concert or as a group, and the Company shall not assert any such claim, with respect to such obligations or transactions.
Each Holder shall be entitled to protect and enforce its rights, including without limitation the rights arising out of this Agreement,
and it shall not be necessary for any other Holder to be joined as an additional party in any proceeding for such purpose. The use of
a single agreement with respect to the obligations of the Company contained was solely in the control of the Company, not the action
or decision of any Holder, and was done solely for the convenience of the Company and not because it was required or requested to do
so by any Holder. It is expressly understood and agreed that each provision contained in this Agreement is between the Company and a
Holder, solely, and not between the Company and the Holders collectively and not between and among Holders.

 

********************

 

(Signature
Pages Follow)

 

    	-16-

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first written above.

 

	 	PERMEX
    PETROLEUM CORPORATION
	 	 	 
	 	By:	 
	 	Name:	Mehran
    Ehsan
	 	Title:	President,
    CEO and Director

 

[SIGNATURE
PAGE OF HOLDERS FOLLOWS]

 

    	-17-

     

    

 

 

SIGNATURE
PAGE OF HOLDERS TO REGISTRATION RIGHTS AGREEMENT OF PERMEX PETROLEUM CORPORATION

 

Name
of Holder: __________________________

 

Signature
of Authorized Signatory of Holder: __________________________

 

Name
of Authorized Signatory: _________________________

 

Title
of Authorized Signatory: __________________________

 

[SIGNATURE
PAGES CONTINUE]

 

    	-18-

     

    

 

Annex
A

 

Plan
of Distribution

 

Each
Selling Stockholder (the “Selling Stockholders”) of the securities and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their securities covered hereby on the principal Trading Market in the United States or any
other stock exchange, market or trading facility on which the securities are traded or in private transactions. These sales may be at
fixed or negotiated prices. A Selling Stockholder may use any one or more of the following methods when selling securities:

 

	 	●	ordinary
    brokerage transactions and transactions in which the broker-dealer solicits purchasers;
	 	 	 
	 	●	block
    trades in which the broker-dealer will attempt to sell the securities as agent but may position and resell a portion of the block
    as principal to facilitate the transaction;
	 	 	 
	 	●	purchases
    by a broker-dealer as principal and resale by the broker-dealer for its account;
	 	 	 
	 	●	an
    exchange distribution in accordance with the rules of the applicable exchange;
	 	 	 
	 	●	privately
    negotiated transactions;
	 	 	 
	 	●	settlement
    of short sales;
	 	 	 
	 	●	in
    transactions through broker-dealers that agree with the Selling Stockholders to sell a specified number of such securities at a stipulated
    price per security;
	 	 	 
	 	●	through
    the writing or settlement of options or other hedging transactions, whether through an options exchange or otherwise;
	 	 	 
	 	●	a
    combination of any such methods of sale; or 
	 	 	 
	 	●	any
    other method permitted pursuant to applicable law.

 

The
Selling Stockholders may also sell securities under Rule 144 or any other exemption from registration under the Securities Act of 1933,
as amended (the “Securities Act”), if available, rather than under this prospectus.

 

Broker-dealers
engaged by the Selling Stockholders may arrange for other brokersdealers to participate in sales. Broker-dealers may receive commissions
or discounts from the Selling Stockholders (or, if any broker-dealer acts as agent for the purchaser of securities, from the purchaser)
in amounts to be negotiated, but, except as set forth in a supplement to this prospectus, in the case of an agency transaction not in
excess of a customary brokerage commission in compliance with FINRA Rule 2440; and in the case of a principal transaction a markup or
markdown in compliance with FINRA IM2440.

 

    	-19-

     

    

 

In
connection with the sale of the securities or interests therein, the Selling Stockholders may enter into hedging transactions with broker-dealers
or other financial institutions, which may in turn engage in short sales of the securities in the course of hedging the positions they
assume. The Selling Stockholders may also sell securities short and deliver these securities to close out their short positions, or loan
or pledge the securities to broker-dealers that in turn may sell these securities. The Selling Stockholders may also enter into option
or other transactions with broker-dealers or other financial institutions or create one or more derivative securities which require the
delivery to such broker-dealer or other financial institution of securities offered by this prospectus, which securities such broker-dealer
or other financial institution may resell pursuant to this prospectus (as supplemented or amended to reflect such transaction).

 

The
Selling Stockholders and any broker-dealers or agents that are involved in selling the securities may be deemed to be “underwriters”
within the meaning of the Securities Act in connection with such sales. In such event, any commissions received by such broker-dealers
or agents and any profit on the resale of the securities purchased by them may be deemed to be underwriting commissions or discounts
under the Securities Act. Each Selling Stockholder has informed the Company that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the securities.

 

The
Company is required to pay certain fees and expenses incurred by the Company incident to the registration of the securities. The Company
has agreed to indemnify the Selling Stockholders against certain losses, claims, damages and liabilities, including liabilities under
the Securities Act.

 

We
agreed to keep this prospectus effective until the earlier of (i) the date on which the securities may be resold by the Selling Stockholders
without registration and without regard to any volume or manner-of-sale limitations by reason of Rule 144, without the requirement for
the Company to be in compliance with the current public information under Rule 144 under the Securities Act or any other rule of similar
effect or (ii) all of the securities have been sold pursuant to this prospectus or Rule 144 under the Securities Act or any other rule
of similar effect or (iii) March 28, 2027. The resale securities will be sold only through registered or licensed brokers or dealers
if required under applicable state securities laws. In addition, in certain states, the resale securities covered hereby may not be sold
unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification
requirement is available and is complied with.

 

Under
applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the resale securities may not simultaneously
engage in market making activities with respect to the common shares for the applicable restricted period, as defined in Regulation M,
prior to the commencement of the distribution. In addition, the Selling Stockholders will be subject to applicable provisions of the
Exchange Act and the rules and regulations thereunder, including Regulation M, which may limit the timing of purchases and sales of the
common shares by the Selling Stockholders or any other person.

 

We
will make copies of this prospectus available to the Selling Stockholders and have informed them of the need to deliver a copy of this
prospectus to each purchaser at or prior to the time of the sale (including by compliance with Rule 172 under the Securities Act).

 

    	-20-

     

    

 

Annex
B

 

SELLING
SHAREHOLDERS

 

The
common shares being offered by the selling shareholders are those previously issued to the selling shareholders, and those issuable to
the selling shareholders, upon exercise of the warrants. For additional information regarding the issuances of those common shares and
warrants, see “Private Placement Common Shares and Warrants” above. We are registering the common shares in order to permit
the selling shareholders to offer the shares for resale from time to time. Except for the ownership of the common shares and the warrants,
the selling shareholders have not had any material relationship with us within the past three years.

 

The
table below lists the selling shareholders and other information regarding the beneficial ownership of the common shares by each of the
selling shareholders. The second column lists the number of common shares beneficially owned by each selling shareholder, based on its
ownership of the common shares and warrants, as of ________, 2022, assuming exercise of the warrants held by the selling shareholders
on that date, without regard to any limitations on exercises.

 

The
third column lists the common shares being offered by this prospectus by the selling shareholders.

 

In
accordance with the terms of a registration rights agreement with the selling shareholders, this prospectus generally covers the resale
of the sum of (i) the number of common shares issued to the selling shareholders in the [__________________], and (ii) the maximum number
of common shares issuable upon exercise of the related warrants, determined as if the outstanding warrants were exercised in full as
of the trading day immediately preceding the date this registration statement was initially filed with the SEC, each as of the trading
day immediately preceding the applicable date of determination and all subject to adjustment as provided in the registration right agreement,
without regard to any limitations on the exercise of the warrants. The fourth column assumes the sale of all of the shares offered by
the selling shareholders pursuant to this prospectus.

 

Under
the terms of the warrants, a selling shareholder may not exercise the warrants to the extent such exercise would cause such selling shareholder,
together with its affiliates and attribution parties, to beneficially own a number of common shares which would exceed [4.99%] [/9.99%]
of our then outstanding common shares following such exercise, excluding for purposes of such determination common shares issuable upon
exercise of the warrants which have not been exercised . The number of shares in the second column does not reflect this limitation.
The selling shareholders may sell all, some or none of their shares in this offering. See “Plan of Distribution.”

 

Name
of Selling Shareholder Number of Common Shares Owned Prior to Offering Maximum Number of Common Shares to be Sold Pursuant to this Prospectus
Number of Common Shares Owned After Offering Annex C

 

    	-21-

     

    

 

PERMEX
PETROLEUM CORPORATION

 

Selling
Stockholder Notice and Questionnaire The undersigned beneficial owner of common shares (the “Registrable Securities”) of
Permex Petroleum Corporation (the “Company”), understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the “Commission”) a registration statement (the “Registration Statement”) for the registration
and resale under Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of the Registrable Securities,
in accordance with the terms of the Registration Rights Agreement (the “Registration Rights Agreement”) to which this document
is annexed. A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth below. All
capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights Agreement.

 

Certain
legal consequences arise from being named as a selling stockholder in the Registration Statement and the related prospectus. Accordingly,
holders and beneficial owners of Registrable Securities are advised to consult their own securities law counsel regarding the consequences
of being named or not being named as a selling stockholder in the Registration Statement and the related prospectus.

 

NOTICE

 

The
undersigned beneficial owner (the “Selling Stockholder”) of Registrable Securities hereby elects to include the Registrable
Securities owned by it in the Registration Statement.

 

The
undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate:

 

QUESTIONNAIRE

 

1. Name.

 

(a) Full
Legal Name of Selling Stockholder

 

_____________________________________________________________

 

(b) Full
Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities are held:

 

_____________________________________________________________

 

(c) Full
Legal Name of Natural Control Person (which means a natural person who directly or indirectly alone or with others has power to vote
or dispose of the securities covered by this Questionnaire):

 

_____________________________________________________________

 

    	-22-

     

    

 

2. Address
for Notices to Selling Stockholder:

 

_____________________________________________________________

 

_____________________________________________________________

 

________________________________________________________________

 

Telephone:

 

_____________________________________________________________

 

Fax:_____________________________________________________________

 

Email:_______________________________________________________________________

 

Contact
Person:

 

3. Broker-Dealer
Status:

 

(a) Are
you a broker-dealer?

 

Yes
☐     No  ☐

 

(b) If
“yes” to Section 3(a), did you receive your Registrable Securities as compensation for investment banking services to the
Company?

 

Yes
☐     No  ☐

 

Yes
No Note: If “no” to Section 3(b), the Commission’s staff has indicated that you should be identified as an underwriter
in the Registration Statement.

 

(c) Are
you an affiliate of a broker-dealer?

 

Yes
☐     No  ☐

 

(d)
If you are an affiliate of a broker-dealer, do you certify that you purchased the Registrable Securities in the ordinary course of business,
and at the time of the purchase of the Registrable Securities to be resold, you had no agreements or understandings, directly or indirectly,
with any person to distribute the Registrable Securities?

 

Yes
No Note: If “no” to Section 3(d), the Commission’s staff has indicated that you should be identified as an underwriter
in the Registration Statement.

 

4. Beneficial
Ownership of Securities of the Company Owned by the Selling Stockholder.

 

Except
as set forth below in this Item 4, the undersigned is not the beneficial or registered owner of any securities of the Company other than
the securities issuable pursuant to the Purchase Agreement.

 

(a) Type
and Amount of other securities beneficially owned by the Selling Stockholder:

 

__________________________________________________________________

 

    	-23-

     

    

 

5. Relationships
with the Company:

 

Except
as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (owners of 5%
of more of the equity securities of the undersigned) has held any position or office or has had any other material relationship with
the Company (or its predecessors or affiliates) during the past three years.

 

State
any exceptions here:

 

__________________________________________________________________

 

__________________________________________________________________

 

The
undersigned agrees to promptly notify the Company of any material inaccuracies or changes in the information provided herein that may
occur subsequent to the date hereof at any time while the Registration Statement remains effective; provided, that the undersigned shall
not be required to notify the Company of any changes to the number of securities held or owned by the undersigned or its affiliates.

 

By
signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items 1 through 5 and
the inclusion of such information in the Registration Statement and the related prospectus and any amendments or supplements thereto.
The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment
of the Registration Statement and the related prospectus and any amendments or supplements thereto.

 

IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice and Questionnaire to be executed and delivered either
in person or by its duly authorized agent.

 

	Date:	 	Beneficial
    Owner:
	 	 	 
	 	 	By:
	 	 	 
	 	 	Name:
	 	 	 
	 	 	Title:

 

PLEASE
EMAIL A .PDF COPY OF THE COMPLETED AND EXECUTED NOTICE

 

AND
QUESTIONNAIRE TO:

 

1)
☐, and

 

2)
☐

 

    	-24-

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