Document:

lowell_ex105

  Exhibit 10.5

 

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS
SECURITY MUST NOT TRADE THE SECURITY BEFORE AUGUST 11,
2020.

 

THIS WARRANT AND THE UNDERLYING SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 (THE “ACT”), AS
AMENDED, OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE
SECURITIES MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED,
PLEDGED OR HYPOTHECATED EXCEPT AS PERMITTED UNDER THE ACT AND
APPLICABLE STATE SECURITIES LAWS PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT OR AN EXEMPTION THEREFROM. THE ISSUER OF
THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL REASONABLY
SATISFACTORY TO THE ISSUER THAT SUCH OFFER, SALE OR TRANSFER,
PLEDGE OR HYPOTHECATION OTHERWISE COMPLIES WITH THE ACT AND ANY
APPLICABLE STATE SECURITIES LAWS.

 

INDUS HOLDINGS, INC.

 

WARRANT TO PURCHASE STOCK

 

	
No.
W-20

	
  April
10, 2020

For
value received, this Warrant is issued to
[                
], located at
[          ]
(“Holder”) and
entitles Holder to subscribe for and purchase at the Exercise Price
(as defined below) from Indus Holdings, Inc., a British Columbia
corporation (the “Company”), the
Exercise Shares (as defined below) upon the terms and subject to
the adjustments as provided herein. This Warrant is one of a series
of similar Warrants (collectively, the
“Warrants”)
issued pursuant to that certain Debenture and Warrant Purchase
Agreement, dated as of April 10, 2020 and executed by Holder and
the Purchasers identified on Schedule I attached thereto
(the “Purchase
Agreement”).

 

1. Definitions.
As used herein, the following terms shall have the following
respective meanings:

 

(a) “Change of
Control” has the meaning
given such term in Section 5 of the Debentures.

 

(b) “Conversion
Price” has the meaning
set forth in the Debentures.

 

(c) “Debentures”
means, collectively, the Senior Secured Convertible Debentures
issued pursuant to the Purchase Agreement.

 

(a) “Equivalent
Amount” means, in
relation to an amount in one currency, the amount in another
currency that could be purchased by the amount in the first
currency, determined by reference to the applicable Exchange Rate
at the time of such determination.

 

(b) “Exchange
Rate” means, on the date
of determination of any amount of Canadian Dollars to be converted
into another currency pursuant to this certificate for any reason,
or vice-versa, the spot rate of exchange for converting Canadian
Dollars into such other currency or vice-versa, as the case may be,
established by Thomson Reuters pursuant to the WM/Reuters 12 noon
ET FIX FX Benchmark at approximately 12:30 p.m. (Toronto time) on
the date of such determination (or such other date as may be
specified herein).

 

(c) “Exercise
Period” means the time
period commencing on the earlier of July 1, 2020 and a Change of
Control and ending on the earlier to occur of (i) immediately prior
to a Change of Control or (ii)
the 42 month anniversary of the Initial Closing
Date.

 

(d)  “Exercise
Price” means $0.28 USD
per share, subject to adjustment as provided in Section 3
hereof.

 

 

 

 

(e) “Exercise
Shares” means
[                 
] Warrant Shares, subject to
adjustment as provided in Section 3 of this
Warrant.

 

(f) “Holders”
means (as the context requires) more than one of the holders of the
Warrants or all of the holders of the Warrants
collectively.

 

(g) “Required
Holders” means one or
more Holders holding Warrants exercisable for a majority of the
total Exercise Shares issuable at the time.

 

(h) “Warrant
Shares” means subordinate
voting shares of the Company.

 

Any
capitalized term used but not defined herein shall have the meaning
assigned to such term in or by reference in the Purchase
Agreement.

 

2. Exercise
of Warrant.

 

2.1 Cash
Exercise. The rights
represented by this Warrant may be exercised in whole or in part at
any time during the Exercise Period, by delivery of the following
to the Company at its address set forth above (or at such other
address as the Company may designate in writing to the
Holder):

 

(a) an executed Notice of Exercise in the form
attached hereto as Exhibit
A;

 

(b) payment
equal to the Exercise Price multiplied by the number of Exercise
Shares for which the Warrant is being exercised, (i) in cash, by
wire transfer or by check to the Company or (ii) by cancellation of
indebtedness of the Company to the Holder; and

 

(c) this
Warrant.

 

Upon
the exercise of the rights represented by this Warrant, a
certificate or certificates for the Exercise Shares so purchased,
registered in the name of the Holder shall be issued and delivered
to the Holder as soon as practicable after the rights represented
by this Warrant shall have been so exercised. The person in whose
name any certificate or certificates for Exercise Shares are to be
issued upon exercise of this Warrant shall be deemed to have become
the holder of record of such shares on the date on which this
Warrant was surrendered and payment of the Exercise Price was made,
irrespective of the date of delivery of such certificate or
certificates, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are
closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on
which the stock transfer books are open.

 

Any
certificates representing shares issued upon exercise of the
Warrants prior to the date that is four months and one day after
the date of issue of the Warrants, and any shares issued in
exchange for such shares, will bear the following
legend:

 

“UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY
MUST NOT TRADE THE SECURITY BEFORE AUGUST 11,
2020.”

 

 

 

 

2.2 Net
Exercise. Notwithstanding any
provisions herein to the contrary, if the fair market value of one
share of the class and series of the Company’s capital stock
to which the Exercise Shares belong (the “Stock”)
is greater than the Exercise Price (at the date of calculation as
set forth below), in lieu of exercising this Warrant by payment of
cash or forgiveness of indebtedness pursuant to Section 2.1(b)
above, the Holder may at any time on
or after the 18 month anniversary of the Initial Closing Date and
at any time in connection with a Change of Control elect to receive
shares equal to the value (as determined below) of this Warrant (or
the portion thereof being canceled) by surrender of this Warrant at
the principal office of the Company together with the properly
endorsed Notice of Exercise, in which event the Company shall issue
to the Holder a number of shares of the applicable class and series
of Stock computed using the following formula:

 

X =
Y
(A-B)

A

 

Where X
= 

the number of
shares of Stock to be issued to the Holder

 

Y
= 

the number of
shares of Stock then purchasable under the Warrant

 

A
= 

the fair market
value of one share of the Stock as determined in accordance with
Section 2.3 below
(at the date of such calculation)

 

B
= 

Exercise Price (as
adjusted to the date of such calculation)

 

2.3 Determination of Fair
Market Value. For purposes of
this Warrant, the fair market value of one share of the Stock shall
be determined by the Company’s Board of Directors in good
faith as of the date of such calculation; provided,
however,
that:

 

(a) (i) if the Stock is traded on a securities
exchange or through the Nasdaq National Market or Canadian
Securities Exchange, the fair market value per share shall be
deemed to be the average of the closing prices of the Stock on such
exchange or quotation system (or the Equivalent Amount in United
States dollars if the closing prices are quoted in Canadian
dollars) over the 
10 trading-day period
ending three trading days prior to the exercise of the Warrant;
(ii) if the Stock is actively traded over-the-counter, the fair
market value shall be deemed to be the average of the closing bid
or sale prices (whichever is applicable) over the 10 trading-day
period ending three days prior to the exercise of the Warrant; and
(iii) if there is no active public market, the value shall be the
fair market value thereof, as determined by the Company’s
Board of Directors in good faith; and

 

(b) in the event that this Warrant is exercised
pursuant to this Section 2.2
in connection with a Change of Control
of the Company, the fair market value per share of Stock shall be
the price paid for such share of Stock (in cash or in property, as
determined by the Company’s Board of Directors) in connection
with the Change of Control.

 

2.4 Conversion by the
Company. At any time (a) on or
after the 12-month anniversary of the Initial Closing Date (as
defined in the Purchase Agreement) and prior to the 18-month
anniversary of the Initial Closing Date, and provided that the
closing price for the Warrant Shares has been at least 6 times the
Exercise Price on each trading day of the immediately preceding
30-trading day period, (b) on or after the 18-month anniversary of
the Initial Closing Date and prior to the 24-month anniversary of
the Initial Closing Date, and provided that the closing price for
the Warrant Shares has been at least 4 times the Exercise Price on
each trading day of the immediately preceding 30-trading day
period, and (c) on or after the 24-month anniversary of the Initial
Closing Date, and provided that the closing price for the Warrant
Shares has been at least USD $0.90 per share (adjusted on the same
basis as provided in Section 3) on each trading day of the
immediately preceding 30-trading day period, the Company may
deliver a written notice to the Holder of this Warrant requiring
that this Warrant be exercised for Exercise Shares. Effective as of
the fifth business day following delivery of such Notice, this
Warrant shall be converted into a number of Exercise Shares
determined pursuant to the formula set forth in Section
2.2.

 

3. Adjustment
of Exercise Price. Subject to the requirements of the
Canadian Securities Exchange (or such other exchange on which the
Exercise Shares are then listed), the Exercise Price and Exercise
Shares shall be subject to adjustment from time to time as
follows:

 

3.1 If and whenever at any time prior to end of the
Exercise Period the outstanding Stock shall be subdivided,
redivided or changed into a greater or consolidated into a lesser
number of Stock or reclassified into different shares of capital
stock of the Company (a “Reclassification”),
or the Company shall issue additional Stock (or securities
convertible into additional Stock or different shares of capital
stock of the Company) to the holders of all or substantially all of
its outstanding Stock by way of a stock dividend or otherwise
(other than an issue of additional Stock to holders of Stock who
have elected to receive dividends in the form of Stock in lieu of
receiving cash dividends paid in the ordinary course) (a
“Stock
Dividend”), Holder shall
be entitled to receive and shall accept, upon the exercise of such
right and payment of the aggregate Exercise Price at any time on
the effective date of such Reclassification or Stock Dividend or
thereafter, in lieu of the number of Stock to which he was
theretofore entitled upon exercise, the aggregate number of Stock,
different shares of capital stock of the Company and/or securities
convertible into Stock or different shares of capital stock of the
Company that Holder would have held immediately following such
Reclassification or Stock Dividend had he been the registered
holder of the number of Stock to which he was theretofore entitled
upon exercise as of the applicable record date or effective date
for such action.

 

 

 

 

3.2 If and whenever at any time prior to the end of
the Exercise Period the Company shall issue rights, options or
warrants to all or substantially all the holders of its outstanding
Stock entitling them to subscribe for or purchase additional
Stock, different shares of capital
stock of the Company or securities convertible into Stock or
different shares of capital stock of the Company, and if such
issuance has or is reasonably likely to have a material adverse
effect on rights of Holder hereunder, then the Exercise Price shall
be adjusted appropriately as determined by the directors of the
Company, acting reasonably. If all such rights, options or warrants
are not exercised prior to the expiration thereof, the Conversion
Price shall be readjusted based upon the number of additional
Stock, different shares of capital stock of the Company or
securities convertible into Stock or different shares of capital
stock of the Company actually issued upon the exercise of such
rights, options or warrants, as the case may
be.

 

3.3 No
adjustments of the Exercise Price shall be made pursuant to Section
3.1 or Section 3.2 if the Holder is permitted to participate in
such Reclassification or Stock Dividend or in the issue of such
options, rights or warrants, as the case may be, as though and to
the same effect as if it had exercised this Warrant into Exercise
Shares prior to the applicable record date or effective date for
such Reclassification or Stock Dividend or the issue of such
options, rights or warrants, as the case may be.

 

3.4 The
adjustments provided for in this Section 3 are cumulative and shall
be computed to the nearest one-tenth of one cent and will be made
successively whenever an event referred to therein occurs.
Notwithstanding the foregoing, no adjustment of the Exercise Price
shall be made in any case in which the resulting increase or
decrease in the Exercise Price would be less than one percent of
the then prevailing Exercise Price. Any adjustment that would
otherwise have been required to be made, but for the minimum
percentage threshold, shall be carried forward and made at the time
of and together with the next subsequent adjustment to the Exercise
Price which, together with any and all such adjustments so carried
forward, shall result in an increase or decrease in the Exercise
Price by not less than one percent.

 

4. Fractional
Shares; Effect of Exercise. Notwithstanding anything herein contained, the
Company shall in no case be required to issue fractional Exercise
Shares upon the exercise of this Warrant. If any fractional
interest in an Exercise Share would, except for the provisions of
this 4, be deliverable upon the exercise of this Warrant, the
aggregate number of Exercise Shares to which such holder shall be
entitled shall be rounded down to the nearest whole number if the
fraction is less than 0.5 and rounded up to the nearest whole
number if the fraction is 0.5 or greater.

 

5. No
Stockholder Rights. This Warrant shall not
entitle the Holder to any right to receive dividends, voting rights
or other rights as a stockholder of the Company.

 

6. Lost,
Stolen, Mutilated or Destroyed Warrant. The Company covenants to
the Holder hereof that, upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or
mutilation of this Warrant or any stock certificate and, in the
case of any such loss, theft or destruction, upon receipt of an
indemnity reasonably satisfactory to the Company, or in the case of
any such mutilation, upon surrender and cancellation of such
Warrant or stock certificate, the Company shall make and deliver a
new Warrant or stock certificate, of like tenor, in lieu of the
lost, stolen, destroyed or mutilated Warrant or stock
certificate.

 

7. Notices.
 Any notice
required or permitted under this Warrant shall be given in
accordance with Section 9(g) of the Purchase
Agreement.

 

8. Acceptance. Receipt
of this Warrant by the Holder shall constitute acceptance of and
agreement to all of the terms and conditions contained
herein.

 

9. Amendment
and Waiver.
Any provision of this Warrant may be amended or waived in a writing
signed by both the Company and the Required Holders and such
amendment or waiver shall be binding on all Holders.

 

10. Governing
Law; Venue.

 

10.1 This
Warrant and all actions arising out of or in connection with this
Warrant shall be governed by and construed in accordance with the
laws of the State of Delaware, without regard to its internal rules
governing the conflict of laws.

 

 

 

 

10.2 Each of the
Company and the Holder hereby irrevocably and unconditionally
submits, for itself and its property, to the exclusive jurisdiction
of any Delaware State court or Federal court of the United States
of America sitting in Delaware, in Wilmington, and any appellate
court from any thereof, in any action or proceeding arising out of
or relating to this Warrant or the transactions contemplated hereby
or for recognition or enforcement of any judgment relating hereto,
and each of the Company and the Holder hereby irrevocably and
unconditionally (a) agrees not to commence any such action or
proceeding except in such courts; (b) agrees that any claim in
respect of any such action or proceeding may be heard and
determined in such courts; (c) waives any objection or defense
which it may now or hereafter have based on personal jurisdiction;
(d) waives any objection which it may now or hereafter have to the
laying of venue of any such action or proceeding in any such court;
and (e) waives the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court. Each of
the Company and the Holder agrees that a final judgment in any such
action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner
provided by law. Each of the Company and the Holder irrevocably
consents to service of process in the manner provided for notices
in Section 7(g)
of the Purchase
Agreement.

 

10.3 EACH
OF THE COMPANY AND THE HOLDER HEREBY IRREVOCABLY WAIVES ALL RIGHTS
TO TRIAL BY JURY IN ANY PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE
BETWEEN THE COMPANY AND THE HOLDER (WHETHER ARISING IN CONTRACT,
TORT OR OTHERWISE) ARISING OUT OF, CONNECTED WITH, RELATED TO OR
INCIDENTAL TO THIS WARRANT, THE TRANSACTIONS CONTEMPLATED HEREBY OR
THE RELATIONSHIPS ESTABLISHED BETWEEN THE COMPANY, THE HOLDER, ANY
OTHER HOLDER(S) OF WARRANTS.

 

 

(Signature page follows)

 

 

 

 

In Witness Whereof, the Company has
caused this Warrant to be executed by its duly authorized officer
as of the date first above written.

 

COMPANY:

 

INDUS HOLDINGS, INC.

 

By:                                                                            

 

 

 

Accepted:

 

[If
Purchaser is an entity:

 

PURCHASER:

 

[Purchaser]

By:                                                                                 
]

[Name]

[Title]                                                                              

 

 

[If
Purchaser is an individual:

 

PURCHASER:

 

 

                                                                               
         

[Purchaser]

 

 

Signature
Page to Warrant

 

 

Exhibit a

 

NOTICE OF EXERCISE

 

TO: Indus Holdings, Inc.

 

(1)          
The
undersigned hereby elects to purchase __ shares of ______ of Indus
Holdings, Inc. (the “Company”)
pursuant to the terms of the attached Warrant, and tenders herewith
payment of the Exercise Price in full, together with all applicable
transfer taxes, if any by; Check all that apply:

 

(a)           
payment of US$_________ by wire transfer, federal reference number
_________,

 

(b)           
cancellation of indebtedness in the amount of US$_________,
represented by the note enclosed herewith; or

 

The
undersigned hereby elects to purchase ______ shares of __________of
the Company pursuant to the terms of the net exercise provisions
set forth in Section 2.2 of the attached Warrant, and shall tender
payment of all applicable transfer taxes, if any.

 

(2)           Please
issue a certificate or certificates representing said shares of
Stock in the name of the undersigned or in such other name as is
specified below:

 

_____________________________________

Holder

 

_____________________________________

Address

 

(3)           The
undersigned represents that (i) the aforesaid shares of Stock are
being acquired for the account of the undersigned for investment
and not with a view to, or for resale in connection with, the
distribution thereof and that the undersigned has no present
intention of distributing or reselling such shares; (ii) the
undersigned is aware of the Company’s business affairs and
financial condition and has acquired sufficient information about
the Company to reach an informed and knowledgeable decision
regarding the undersigned’s investment in the Company; (iii)
the undersigned is experienced in making investments of this type
and has such knowledge and background in financial and business
matters that the undersigned is capable of evaluating the merits
and risks of this investment and protecting the undersigned’s
own interests; (iv) the undersigned understands that the shares of
Stock issuable upon exercise of this Warrant have not been
registered under the Securities Act, by reason of a specific
exemption from the registration provisions of the Securities Act,
which exemption depends upon, among other things, the bona fide
nature of the investment intent as expressed herein, and, because
such securities have not been registered under the Securities Act,
they must be held indefinitely unless subsequently registered under
the Securities Act or an exemption from such registration is
available; (v) the undersigned is aware that the aforesaid shares
of Stock may not be sold pursuant to Rule 144 adopted under the
Securities Act unless certain conditions are met and until the
undersigned has held the shares for the number of years prescribed
by Rule 144, that among the conditions for use of the Rule is the
availability of current information to the public about the Company
and the Company has not made such information available and has no
present plans to do so; (vi) the undersigned is an
“accredited investor” (as defined in Rule 501
promulgated pursuant to the Securities Act); and (vii) the
undersigned agrees not to make any disposition of all or any part
of the aforesaid shares of Stock unless and until there is then in
effect a registration statement under the Securities Act covering
such proposed disposition and such disposition is made in
accordance with said registration statement, or the undersigned has
provided the Company with an opinion of counsel satisfactory to the
Company, stating that such registration is not
required.

 

	
 

	
 

	
 

	Date	
 

	
(Signature)

	
 

	
 

	
 

	
 

	
 

	
(Print name)

 

 

Exhibit
A-1lowell_ex106

Exhibit 10.6

 

 

 

 

INDUS HOLDINGS, INC.

 

 

- and
-

 

 

ODYSSEY TRUST COMPANY

 

 

 

WARRANT INDENTURE

 

Providing
for the Issue of

up
to 12,190,000
Subordinate Voting Share Purchase Warrants

 

 

 

December
21, 2020

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

 

	

ARTICLE 1 INTERPRETATION

	

2

	

1.1

	

Definitions

	

2

	

1.2

	

Words
Importing the Singular

	

7

	

1.3

	

Interpretation
not Affected by Headings

	

7

	

1.4

	

Day not
a Business Day

	

7

	

1.5

	

Time of
the Essence

	

7

	

1.6

	

Governing
Law

	

7

	

1.7

	

Meaning
of "outstanding" for Certain Purposes

	

8

	

1.8

	

Currency

	

8

	

1.9

	

Termination

	

8

	

ARTICLE 2 ISSUE OF WARRANTS

	

8

	

2.1

	

Issue
of Warrants

	

8

	

2.2

	

Form
and Terms of Warrants

	

8

	

2.3

	

Signing
of Warrant Certificates

	

9

	

2.4

	

Authentication
by the Warrant Agent

	

9

	

2.5

	

Warrantholder
not a Shareholder, etc.

	

10

	

2.6

	

Issue
in Substitution for Lost Warrant Certificates

	

10

	

2.7

	

Warrants
to Rank Pari Passu

	

11

	

2.8

	

Registration
and Transfer of Warrants

	

11

	

2.9

	

Registers
Open for Inspection

	

12

	

2.10

	

Exchange
of Warrants

	

12

	

2.11

	

Ownership
of Warrants

	

13

	

2.12

	

Uncertificated
Warrants

	

13

	

2.13

	

Adjustment
of Exchange Basis

	

15

	

2.14

	

Rules
Regarding Calculation of Adjustment of Exchange Basis

	

19

	

2.15

	

Postponement
of Subscription

	

20

	

2.16

	

Notice
of Adjustment

	

21

	

2.17

	

No
Action after Notice

	

21

	

2.18

	

Purchase
of Warrants for Cancellation

	

21

	

2.19

	

Protection
of Warrant Agent

	

22

	

2.20

	

U.S.
Legend on Warrant Certificates and Warrant Share
certificates

	

22

 

 

 

 

 

	

ARTICLE 3 EXERCISE OF WARRANTS

	

24

	

3.1

	

Method
of Exercise of Warrants

	

24

	

3.2

	

No
Fractional Shares

	

26

	

3.3

	

Effect
of Exercise of Warrants

	

26

	

3.4

	

Cancellation
of Warrants

	

27

	

3.5

	

Subscription
for less than Entitlement

	

27

	

3.6

	

Expiration
of Warrant

	

27

	

3.7

	

Prohibition
on Exercise by U.S. Persons; Exception

	

27

	

ARTICLE 4 COVENANTS FOR WARRANTHOLDERS' BENEFIT

	

28

	

4.1

	

General
Covenants of the Company

	

28

	

4.2

	

Warrant
Agent's Remuneration and Expenses

	

30

	

4.3

	

Performance
of Covenants by Warrant Agent

	

30

	

4.4

	

Enforceability
of Warrants

	

30

	

ARTICLE 5 ENFORCEMENT

	

30

	

5.1

	

Suits
by Warrantholders

	

30

	

5.2

	

Limitation
of Liability

	

31

	

5.3

	

Waiver
of Default

	

31

	

ARTICLE 6 MEETINGS OF WARRANTHOLDERS

	

31

	

6.1

	

Right
to Convene Meetings

	

31

	

6.2

	

Notice

	

32

	

6.3

	

Chairman

	

32

	

6.4

	

Quorum

	

32

	

6.5

	

Power
to Adjourn

	

33

	

6.6

	

Show of
Hands

	

33

	

6.7

	

Poll
and Voting

	

33

	

6.8

	

Regulations

	

33

	

6.9

	

Company,
Warrant Agent and Counsel may be Represented

	

33

	

6.10

	

Powers
Exercisable by Extraordinary Resolution

	

34

	

6.11

	

Meaning
of "Extraordinary Resolution"

	

35

	

6.12

	

Powers
Cumulative

	

35

	

6.13

	

Minutes

	

35

	

6.14

	

Instruments
in Writing

	

36

	

6.15

	

Binding
Effect of Resolutions

	

36

	

6.16

	

Holdings
by the Company or Subsidiaries of the Company
Disregarded

	

36

	

6.17

	

Subordinate
Voting Shares or Warrants Owned by the Company or its Subsidiaries
– Certificate to be Provided

	

36

	

ARTICLE 7 SUPPLEMENTAL INDENTURES AND SUCCESSOR
COMPANIES

	

37

	

7.1

	

Provision
for Supplemental Indentures for Certain Purposes

	

37

	

7.2

	

Successor
Companies

	

38

 

 

 

 

	

ARTICLE 8 CONCERNING THE WARRANT AGENT

	

38

	

8.1

	

Indenture
Legislation

	

38

	

8.2

	

Rights
and Duties of Warrant Agent

	

38

	

8.3

	

Evidence,
Experts and Advisers

	

39

	

8.4

	

Securities,
Documents and Monies Held by Warrant Agent

	

41

	

8.5

	

Actions
by Warrant Agent to Protect Interests

	

41

	

8.6

	

Warrant
Agent not Required to Give Security

	

41

	

8.7

	

Protection
of Warrant Agent

	

41

	

8.8

	

Replacement
of Warrant Agent

	

43

	

8.9

	

Conflict
of Interest

	

44

	

8.10

	

Acceptance
of Duties and Obligations

	

44

	

8.11

	

Warrant
Agent not to be Appointed Receiver

	

44

	

8.12

	

Authorization
to Carry on Business

	

45

	

ARTICLE 9 GENERAL

	

45

	

9.1

	

Notice
to the Company and the Warrant Agent

	

45

	

9.2

	

Notice
to the Warrantholders

	

46

	

9.3

	

Privacy

	

46

	

9.4

	

Third
Party Interests

	

47

	

9.5

	

Securities
and Exchange Commission Certification

	

47

	

9.6

	

Discretion
of Directors

	

48

	

9.7

	

Satisfaction
and Discharge of Indenture

	

48

	

9.8

	

Provisions
of Indenture and Warrants for the Sole Benefit of Parties and
Warrantholders

	

48

	

9.9

	

Indenture
to Prevail

	

48

	

9.10

	

Assignment

	

48

	

9.11

	

Severability

	

49

	

9.12

	

Force
Majeure

	

49

	

9.13

	

Counterparts
and Formal Date

	

49

 

Schedule "A" Form of
Warrant Certificate

 

Schedule "B" Form of
Declaration for Removal of Legend

 

 

 

 

THIS WARRANT INDENTURE dated as of
December 21, 2020

 

B E T W
E E N:

 

INDUS HOLDINGS, INC.,

a
company existing under the laws of the Province of British
Columbia

 

(the
"Company")

 

A N
D

 

ODYSSEY TRUST COMPANY,

a trust
company incorporated under the laws of Alberta and authorized to
carry on business in the provinces of Alberta and British
Columbia

 

(the
"Warrant
Agent")

 

RECITALS

 

WHEREAS:

 

A.

In connection with
the public offering by the Company of 23,000,000 Units (as defined
below) pursuant to the Prospectus (as defined below), the Company
proposes to issue and sell to the public 11,500,000 Warrants (as
defined below), of which 10,000,000 Warrants will be issuable as a
part of the base Offering and up to 1,500,000 Warrants will be
issuable upon the due exercise in full of the Over-Allotment Option
(as defined below) (the "Offering");

 

B.

In partial
consideration of the Underwriters' (as defined below) services
rendered in connection with the Offering, the Company has agreed to
issue Compensation Options (as defined below) exercisable to
purchase up to 1,380,000 Units (including 180,000 Compensation
Options issuable upon the due exercise in full of the
Over-Allotment Option);

 

C.

Up to an aggregate
number of 690,000 Warrants may be issued upon the exercise of the
Compensation Options.

 

D.

Each Warrant
entitles the holder thereof to purchase, subject to adjustment in
certain events, one Warrant Share (as defined below) at a price of
$2.20 at any time prior to the Time of Expiry (as defined
below);

 

E.

For such purpose
the Company deems it necessary to create and issue Warrants and
Warrant Certificates (as defined below) to be constituted and
issued in the manner hereinafter set forth;

 

F.

The Company is duly
authorized to create and issue the Warrants to be issued as herein
provided;

 

 

 

 

G.

All things
necessary have been done and performed to make the Warrants, when
Authenticated (as defined below) or certified by the Warrant Agent
and issued as provided in this Indenture, legal, valid and binding
upon the Company with the benefits of and subject to the terms of
this Indenture;

 

H.

The foregoing
recitals are made as statements of fact by the Company and not by
the Warrant Agent; and

 

I.

The Warrant Agent
has agreed to enter into this Indenture and to hold all rights,
interests and benefits contained herein for and on behalf of those
persons who become holders of Warrants issued pursuant to this
Indenture from time to time;

 

NOW THEREFORE THIS INDENTURE WITNESSES
that for good and valuable consideration mutually given and
received, the receipt and sufficiency of which are hereby
acknowledged, it is hereby agreed and declared as
follows:

 

ARTICLE
1

INTERPRETATION

 

1.1

Definitions

 

In this
Indenture, unless there is something in the subject matter or
context inconsistent therewith:

 

"Accredited
Investor" has the meaning ascribed to that term in Section
3.7(2)(c);

 

"Applicable
Legislation" means the provisions of the statutes of Canada
and its provinces and the regulations under those statutes relating
to warrant indentures and/or the rights, duties or obligations of
issuers and warrant agents under warrant indentures as are from
time to time in force and applicable to this
Indenture;

 

"Authenticated"
means (a) with respect to the issuance of a Warrant Certificate,
one which has been duly signed by the Company and authenticated by
manual signature of an authorized officer of the Warrant Agent, and
(b) with respect to the issuance of an Uncertificated Warrant, one
in respect of which the Warrant Agent has completed all Internal
Procedures such that the particulars of such Uncertificated Warrant
as required by Section 2.4 are entered in the register of
Warrantholders, "Authenticate", "Authenticating" and "Authentication" have the appropriate
correlative meanings;

 

"Beneficial
Owner" means a person that has a beneficial interest in a
Warrant;

 

"Book-Entry
Only System" means the book-based securities system
administered by CDS in accordance with its operating rules and
procedures in force from time to time;

 

"Business
Day" means a day that is not a Saturday, Sunday, or a day on
which banks are closed or which is a civic or statutory holiday in
the City of Toronto, Ontario or Calgary, Alberta;

 

"Capital
Reorganization" has the meaning ascribed to that term in
Section 2.13(4);

 

"CDS"
means CDS Clearing and Depository Services Inc. and its successors
in interest;

 

"CDSX"
means the CDS settlement and clearing system for equity and debt
securities in Canada;

 

 

 

 

"Closing
Date" means December 21, 2020 or such other date as agreed
to by the Company and the Underwriters;

 

"Company"
means Indus Holdings, Inc., a corporation existing under the laws
of the Province of British Columbia, and its lawful successors from
time to time;

 

"Company's
Auditors" means the chartered (professional) accountant or
firm of chartered (professional) accountants duly appointed as
auditor or auditors of the Company from time to time;

 

"Compensation
Options" means the compensation options issued to or as
directed by the Underwriters on the date hereof or after the date
hereof in connection with the Offering of Units as described in the
Prospectus, each compensation option exercisable to acquire one
Unit, at an exercise price equal to $1.50 per Unit for a period of
12 months from the Closing Date.

 

"Confirmation"
has the meaning ascribed that term in Section 3.1(4);

 

"Counsel"
means a barrister and solicitor or lawyer or a firm of barristers
and solicitors or lawyers, in both cases acceptable to the Warrant
Agent;

 

"Court"
has the meaning ascribed that term in Section 8.8;

 

"CSE"
means the Canadian Securities Exchange;

 

"Current
Market Price" means, at any date, the volume weighted
average price per share at which the Subordinate Voting Shares have
traded:

 

(a)

on the
CSE;

 

(b)

if the Subordinate
Voting Shares are not listed on the CSE, on any stock exchange upon
which the Subordinate Voting Shares are listed, as may be selected
for this purpose by the board of directors of the Company, acting
reasonably; or

 

(c)

if the Subordinate
Voting Shares are not listed on any stock exchange, on any
over-the-counter market on which the Subordinate Voting Shares are
trading, as may be selected for this purpose by the board of
directors of the Company, acting reasonably;

 

during
the 20 consecutive trading days ending the third trading day before
such date; provided that the volume weighted average price shall be
determined by dividing the aggregate sale price of all Subordinate
Voting Shares sold on the exchange or market, as the case may be,
during the 20 consecutive trading days by the number of Subordinate
Voting Shares so sold on said exchange or market or, if not traded
on any recognized exchange or market, as determined by such firm of
independent chartered accountants as may be selected by the board
of directors of the Company, acting reasonably;

 

"director"
means a member of the board of directors of the Company for the
time being, and unless otherwise specified herein, reference to
"action by the board of
directors" means action by the board of directors of the
Company as a board or, whenever duly empowered, action by a
committee of the board;

 

"Dividend
Paid in the Ordinary Course" means dividends paid in any
financial year of the Company, whether in (i) cash, (ii) shares of
the Company, (iii) warrants or similar rights to purchase any
shares of the Company or property or other assets of the Company
provided that the value of such dividends per outstanding
Subordinate Voting Share does not in such financial year exceed in
aggregate 5% of the Exercise Price;

 

 

 

 

"Exchange
Act" has the meaning ascribed that term in Section
9.5;

 

"Exchange
Basis" means, at any time, the number of Warrant Shares or
other classes of shares or securities or property which a
Warrantholder is entitled to receive upon the exercise of the
rights attached to the Warrants pursuant to the terms of this
Indenture, as the number may be adjusted pursuant to Article 2
hereof, such number being equal to one Warrant Share per Warrant as
of the date hereof;

 

"Exercise
Date" with respect to any Warrant means the date on which
such Warrant is duly surrendered for exercise in accordance with
the provisions of Article 3 hereof;

 

"Exercise
Notice" has the meaning ascribed that term in Section
3.1(4)

 

"Exercise
Price" means $2.20 for each Warrant Share, subject to
adjustment in accordance with the provisions of Article 2
hereof;

 

"extraordinary
resolution" has the meaning ascribed to that term in
Sections 6.12 and 6.15;

 

"Internal
Procedures" means in respect of the making of any one or
more entries to, changes in or deletions of any one or more entries
in the register at any time (including without limitation, original
issuance or registration of transfer of ownership) the minimum
number of the Warrant Agent's internal procedures customary at such
time for the entry, change or deletion made to be complete under
the operating procedures followed at the time by the Warrant
Agent;

 

"Indemnified
Parties" has the meaning ascribed that term in Section
8.7(5);

 

"Offering"
has the meaning ascribed thereto in Recital A of this
Indenture;

 

"Over-Allotment
Option" means the option granted by the Company to the
Underwriters, which may be exercised in the Underwriters' sole
discretion and without obligation, to purchase up to an additional
3,000,000 Units, including up to 3,000,000 Unit Shares and up to
1,500,000 Warrants, for the purpose of covering over-allotments
made in connection with the Offering and for market stabilization
purposes, and which is exercisable for any combination of
additional Units, additional Unit Shares and/or additional
Warrants, on or before the 30th day following the Closing
Date;

 

"Participant"
means a person recognized by CDS as a participant in the Book-Entry
Only System;

 

"person"
means an individual, a corporation, a limited liability company, a
partnership, a syndicate, a trustee or any unincorporated
organization and words importing persons are intended to have a
similarly extended meaning;

 

"Prospectus"
means, collectively, the prospectus supplement of the Company dated
December 16, 2020 and the base shelf prospectus of the Company
dated December 11, 2020;

 

"Qualified
Institutional Buyer" has the meaning ascribed to that term
in Section 3.7(2)(b);

 

"QIB
Letter" has the meaning ascribed to that term in Section
3.7(2)(b);

 

 

 

 

"Regulation
S" means Regulation S as promulgated under the U.S.
Securities Act;

 

"Rights
Offering" has the meaning ascribed to that term in Section
2.13(2);

 

"Rights
Offering Price" has the meaning ascribed to that term in
Section 2.14(8);

 

"SEC"
has the meaning ascribed that term in Section 9.5;

 

"Securities
Laws" means, collectively, the applicable securities laws
and regulations of each of the provinces of Canada, except Quebec,
the United States and each of the states of the United States,
together with all respective forms prescribed thereunder, published
rules, policy statements, notices, orders and rulings of the
securities commissions or similar regulatory authorities thereto,
as applicable, including the rules and policies of the
CSE;

 

"shareholder"
means an owner of record of one or more Subordinate Voting Shares
or shares of any other class or series of the Company;

 

"Special
Distribution" has the meaning ascribed to that term in
Section 2.13(3);

 

"Subordinate
Voting Share Reorganization" has the meaning ascribed to
that term in Section 2.13(1);

 

"Subordinate
Voting Shares" means the Subordinate Voting Shares in the
capital of the Company;

 

"Subsidiary"
means a corporation, a majority of the outstanding voting shares of
which are owned, directly or indirectly, by the Company or by one
or more subsidiaries of the Company and, as used in this
definition, "voting shares" means shares of a class or classes
ordinarily entitled to vote for the election of the majority of the
directors of a corporation irrespective of whether or not shares of
any other class or classes shall have or might have the right to
vote for directors by reason of the happening of any
contingency;

 

"successor
company" has the meaning ascribed to that term in Section
7.2;

 

"this
Indenture", "herein",
"hereby" and similar
expressions mean or refer to this Subordinate Voting Share purchase
warrant indenture and any indenture, deed or instrument
supplemental or ancillary hereto; and the expressions "Article", "Section", or "paragraph" followed by a number or
letter mean and refer to the specified Article, Section, or
paragraph of this Indenture;

 

"Time
of Expiry" means 5:00 p.m. (Toronto time) on December 21,
2023;

 

"trading
day" means a day on which the CSE (or such other exchange on
which the Subordinate Voting Shares are listed) is open for
trading, and if the Subordinate Voting Shares are not listed on a
stock exchange, a day on which an over-the-counter market where
such shares are traded is open for business;

 

 

 

 

"transaction
instruction" means a written order signed by the holder or
CDS, entitled to request that one or more actions be taken, or such
other form as may be reasonably acceptable to the Warrant Agent,
requesting one or more such actions to be taken in respect of an
Uncertificated Warrant;

 

"Transfer
Agent" means the transfer agent or agents for the time being
for the Subordinate Voting Shares;

 

"U.S.
Person" means a U.S. person as that term is defined under
Regulation S;

 

"U.S.
Purchaser" is (a) any U.S. Person that purchased Warrants,
(b) any person that purchased Warrants on behalf of any U.S. Person
or any person in the United States, (c) any purchaser of Warrants
that received an offer of the Warrants while in the United States,
or (d) any purchaser that was in the United States at the time the
purchaser's buy order was made or the QIB Letter for Warrants was
executed or delivered;

 

"U.S.
Securities Act" means the United States Securities Act of
1933, as amended;

 

"Uncertificated
Warrant" means any Warrant which is issued under the
Book-Entry Only System or any Warrant which is not a certificated
Warrant;

 

"Underwriters"
means, collectively, Canaccord Genuity Corp., Beacon Securities
Limited and PI Financial Corp.;

 

"Unit
Share" means a Subordinate Voting Share comprising part of
each Unit;

 

"United
States" means the United States as that term is defined in
Regulation S;

 

"Units"
means the units of the Company, each Unit being comprised of one
Unit Share and one-half of one Warrant;

 

"Warrant
Agent" means Odyssey Trust Company, a trust company
incorporated under the laws of Alberta and authorized to carry on
business in the provinces of Alberta and British Columbia or any
lawful successor thereto including through the operation of Section
8.8;

 

"Warrant
Certificates" means the certificates representing Warrants
substantially in the form attached as Schedule "A" hereto or such
other form as may be approved by the Company and the Warrant
Agent;

 

"Warrant
Shares" means the Subordinate Voting Shares or, as a result
of any adjustment to the subscription rights pursuant to Article 2
hereof, other securities or property issuable upon the exercise of
the Warrants;

 

"Warrantholders"
or "holders" means the
persons whose names are entered for the time being in the register
maintained pursuant to Section 2.8;

 

"Warrantholders'
Request" means an instrument, signed in one or more
counterparts by Warrantholders representing, in the aggregate, at
least 20% of the aggregate number of Warrants then outstanding,
which requests the Warrant Agent to take some action or proceeding
specified therein;

 

 

 

 

"Warrants"
means the Subordinate Voting Share purchase warrants of the Company
issued and Authenticated hereunder as Uncertificated Warrants or
to be issued and countersigned in the
form of Warrant Certificates, in either case, entitling the
holders thereof to purchase Warrant Shares on the basis of one
Warrant Share for each Warrant upon payment of the Exercise Price
prior to the Time of Expiry; provided that in each case the number
and/or class of securities or property receivable on the exercise
of the Warrants may be subject to increase or decrease or change in
accordance with the terms and provisions hereof; and

 

"written
direction of the Company", "written request of the Company",
"written consent of the
Company", "Officer's
Certificate" and "certificate of the Company" and any
other document required to be signed by the Company, means,
respectively, a written direction, request, consent, certificate or
other document signed in the name of the Company by any officer or
director and may consist of one or more instruments so
executed.

 

1.2

Words Importing the
Singular

 

Unless
elsewhere otherwise expressly provided, or unless the context
otherwise requires, words importing the singular include the plural
and vice versa and words importing the masculine gender include the
feminine and neuter genders.

 

1.3

Interpretation not Affected by
Headings

 

The
division of this Indenture into Articles, Sections, and paragraphs,
the provision of a table of contents and the insertion of headings
are for convenience of reference only and shall not affect the
construction or interpretation of this Indenture.

 

1.4

Day not a Business
Day

 

If any
day on or before which any action is required or permitted to be
taken hereunder is not a Business Day, then such action shall be
required or permitted to be taken on or before the requisite time
on the next succeeding day that is a Business Day.

 

1.5

Time of the
Essence

 

Time
shall be of the essence in all respects of this Indenture and the
Warrants issued hereunder.

 

1.6

Governing Law

 

This
Indenture and the Warrants issued hereunder shall be construed and
enforced in accordance with the laws of the Province of Ontario and
the federal laws of Canada applicable therein and shall be treated
in all respects as Ontario contracts.

 

1.7

Meaning of "outstanding" for Certain
Purposes

 

Every
Warrant Authenticated or certified by the Warrant Agent hereunder
shall be deemed to be outstanding until it shall be cancelled or
delivered to the Warrant Agent for cancellation, exercised pursuant
to Section 3.1 or until the Time of Expiry; provided that where a
new Warrant Certificate has been issued pursuant to Section 2.6 to
replace one which is lost, mutilated, stolen or destroyed, the
Warrants represented by only one of such Warrant Certificates shall
be counted for the purpose of determining the aggregate number of
Warrants outstanding.

 

 

 

 

1.8

Currency

 

Unless
otherwise stated, all dollar amounts referred to in this Indenture
are in Canadian dollars.

 

1.9

Termination

 

This
Indenture shall continue in full force and effect until the earlier
of: (a) the Time of Expiry; and (b) provided that no Warrants
remain issuable hereunder, the date that no Warrants are
outstanding hereunder; provided that this Indenture shall continue
in effect thereafter, if applicable, until the Company and the
Warrant Agent have fulfilled all of their respective obligations
under this Indenture.

 

ARTICLE 2

ISSUE OF WARRANTS

 

2.1

Issue of Warrants

 

Subject
to adjustment in accordance with the provisions hereof, the Company
hereby creates and authorizes the issuance of up to 12,190,000
Warrants, comprised of 11,500,000 Warrants partially comprising the
Units and up to 690,000 Warrants issuable upon exercise of the
Compensation Options, entitling the registered holders thereof to
acquire an aggregate of up to 12,190,000 Warrant Shares, which are
hereby authorized to be issued hereunder at the Exercise Price upon
the terms and conditions herein set forth. Uncertificated Warrants
shall be Authenticated by the Warrant Agent and deposited in CDS
and Warrant Certificates evidencing the Warrants shall be executed
by the Company, certified by or on behalf of the Warrant Agent and
delivered by the Warrant Agent in accordance with a written
direction of the Company, all in accordance with Sections 2.3 and
2.4. Subject to adjustment in accordance with the provisions of
this Indenture, each of the Warrants issued hereunder shall entitle
the holder thereof to receive from the Company, at the Exercise
Price, the number of Warrant Shares equal to the Exchange Basis in
effect on the Exercise Date.

 

2.2

Form and Terms of
Warrants

 

(1) The Warrants may be
issued in either certificated or uncertificated form. The
Warrant Certificates shall be substantially in the form attached as
Schedule "A" hereto, subject to the provisions of this Indenture,
with such additions, variations and changes as may be required or
permitted by the terms of this Indenture, and to give effect to any
Warrants not being issued as Uncertificated Warrants, and which may
from time to time be agreed upon by the Warrant Agent and the
Company, and shall have such legends, distinguishing letters and
numbers as the Company may, with the approval of the Warrant Agent,
prescribe. Except as hereinafter provided in this Article 2, all
Warrants shall, save as to denominations, be of like tenor and
effect. The Warrant Certificates may be engraved, printed,
lithographed, photocopied or be partially in one form or another,
as the Company may determine. No change in the form of the Warrant
Certificate shall be required by reason of any adjustment made
pursuant to this Article 2 in the number and/or class of securities
or type of securities or property that may be acquired pursuant to
the Warrants. All Warrants issued to CDS may be in either a
certificated or uncertificated form, such uncertificated form being
evidenced by a book position on the register of Warrantholders to
be maintained by the Warrant Agent in accordance with Section
2.8.

 

(2) Each Warrant
authorized to be issued hereunder shall entitle the registered
holder thereof to acquire (subject to Sections 2.13, 2.14 and 2.15)
upon due exercise and upon the transaction instruction or due
execution of the exercise form endorsed on the Warrant Certificate,
as applicable, or other instrument of exercise in such form as the
Warrant Agent and/or the Company may from time to time prescribe
and upon payment of the Exercise Price, one Warrant Share or such
other kind and amount of shares or securities or property,
calculated pursuant to the provisions of Sections 2.13 and 2.14, as
the case may be, at any time after the date of issuance of such
Warrants and prior to the Time of Expiry, in accordance with the
provisions of this Indenture.

 

(3) Fractional Warrants
shall not be issued or otherwise provided for. If any fraction of a
Warrant would otherwise be issuable, and result in a fraction of a
Warrant Share being issuable, any such fractional Warrant so issued
shall be rounded down to the nearest whole Warrant without
compensation therefor.

 

 

 

 

2.3

Signing of Warrant
Certificates

 

Warrant
Certificates shall be signed by any one of the directors or
officers of the Company and may, but need not be under the
corporate seal of the Company or a reproduction thereof. The
signature of any such director or officer may be mechanically
reproduced in facsimile or other electronic format and Warrant
Certificates bearing such facsimile or other electronic format
signatures shall be binding upon the Company as if they had been
manually signed by such director or officer. Notwithstanding that
the person whose manual or electronic signature appears on any
Warrant Certificate as a director or officer may no longer hold
office at the date of issue of the Warrant Certificate or at the
date of certification or delivery thereof, any Warrant Certificate
Authenticated or signed as aforesaid shall, subject to Section 2.4,
be valid and binding upon the Company and the registered holder
thereof will be entitled to the benefits of this
Indenture.

 

2.4

Authentication by the Warrant
Agent

 

(1) No Warrant shall be
issued or, if issued, shall be valid for any purpose or entitle the
registered holder to the benefit hereof or thereof until it has
been Authenticated by or on behalf of the Warrant Agent, as
applicable, and such Authentication by the Warrant Agent shall be
conclusive evidence as against the Company that the Warrant so
Authenticated has been duly issued hereunder and the holder is
entitled to the benefits hereof.

 

(2) The Warrant Agent
shall Authenticate Uncertificated Warrants (whether upon original
issuance, exchange, registration of transfer, partial payment, or
otherwise) by completing its Internal Procedures and the Company
shall, and hereby acknowledges that it shall, thereupon be deemed
to have duly and validly issued such Uncertificated Warrants under
this Indenture. Such Authentication shall be conclusive evidence
that such Uncertificated Warrant has been duly issued hereunder and
that the holder or holders are entitled to the benefits of this
Indenture. The register shall be final and conclusive evidence as
to all matters relating to Uncertificated Warrants with respect to
which this Indenture requires the Warrant Agent to maintain records
or accounts. In case of differences between the register at any
time and any other time the register at the later time shall be
controlling, absent manifest error and such Uncertificated Warrants
are binding on the Company.

 

(3) Any Warrant
Certificate validly issued in accordance with the terms of this
Indenture in effect at the time of issue shall, subject to the
terms of this Indenture and applicable law, validly entitle the
holder to acquire Warrant Shares, notwithstanding that the form of
such Warrant Certificate may not be in the form currently required
by this Indenture.

 

(4) No Warrant
Certificate shall be considered issued or shall be obligatory or
shall entitle the holder thereof to the benefits of this Indenture,
until it has been Authenticated by or on behalf of the Warrant
Agent substantially in the form of the Warrant Certificate set out
in Schedule "A" hereto. Such Authentication on any such Warrant
Certificate shall be conclusive evidence that such Warrant
Certificate is duly Authenticated and is valid and a binding
obligation of the Company and that the holder is entitled to the
benefits of this Indenture.

 

(5) The Authentication
or certification of the Warrant Agent on the Warrants issued
hereunder, including by way of entry on the register, shall not be
construed as a representation or warranty by the Warrant Agent as
to the validity of this Indenture or the Warrants (except the due
Authentication and certification thereof) or as to the performance
by the Company of its obligations under this Indenture and the
Warrant Agent shall in no respect be liable or answerable for the
use made of the Warrants or any of them or of the consideration
therefor except as otherwise specified herein.

 

2.5

Warrantholder not a Shareholder,
etc.

 

Nothing
in this Indenture or the holding of a Warrant shall be construed as
conferring upon a Warrantholder any right or interest whatsoever as
a shareholder, including but not limited to the right to vote at,
to receive notice of, or to attend meetings of shareholders or any
other proceedings of the Company, nor entitle the holder to any
right or interest in respect thereof except as herein and in the
Warrants expressly provided.

 

2.6

Issue in Substitution for Lost Warrant
Certificates

 

(1) If any Warrant
Certificates issued and certified under this Indenture shall become
mutilated or be lost, destroyed or stolen, the Company, subject to
applicable law, and Section 2.6(2), shall issue and thereupon the
Warrant Agent shall certify and deliver a new Warrant Certificate
of like denomination, date and tenor as the one mutilated, lost,
destroyed or stolen in exchange for, in place of and upon
cancellation of such mutilated Warrant Certificate, or in lieu of
and in substitution for such lost, destroyed or stolen Warrant
Certificate, and the substituted Warrant Certificate shall be
substantially in the form set out in Schedule "A" hereto and
Warrants evidenced by it will entitle the holder thereof to the
benefits hereof and shall rank equally in accordance with its terms
with all other Warrant Certificates issued or to be issued
hereunder.

 

 

 

 

(2) The applicant for
the issue of a new Warrant Certificate pursuant to this Section 2.6
shall bear the reasonable cost of the issue thereof and in the case
of mutilation shall, as a condition precedent to the issue thereof,
deliver to the Warrant Agent the mutilated Warrant Certificate, and
in the case of loss, destruction or theft shall, as a condition
precedent to the issue thereof, furnish to the Company and to the
Warrant Agent such evidence of ownership and of the loss,
destruction or theft of the Warrant Certificate so lost, destroyed
or stolen as shall be satisfactory to the Company and to the
Warrant Agent in their sole discretion, acting reasonably, and such
applicant may be required to furnish an indemnity and surety bond
in amount and form satisfactory to the Company and the Warrant
Agent in their sole discretion, acting reasonably, and shall pay
the reasonable charges of the Company and the Warrant Agent in
connection therewith.

 

2.7

Warrants to Rank Pari
Passu

 

All
Warrants shall rank pari
passu with all other Warrants, whatever may be the actual
date of issue of the Warrants.

 

2.8

Registration and Transfer of
Warrants

 

(1) The Warrant Agent
will create and keep at the principal stock transfer offices of the
Warrant Agent in the City of Calgary, Alberta:

 

(a)

a register of
holders in which shall be entered in alphabetical order the names
and addresses of the holders of Warrants and particulars of the
Warrants held by them and the Warrant Agent shall be entitled to
rely on such register in connection with the exchange, transfer,
exercise or deemed exercise of any Warrant(s) pursuant to the terms
of this Indenture or the terms thereof; and

 

(b)

a register of
transfers in which all transfers of Warrants and the date and other
particulars of each such transfer shall be entered.

 

(2) No transfer of any
Warrant will be valid unless entered on the register of transfers
referred to in Section 2.8(1), upon surrender to the Warrant Agent
of the Warrant Certificate evidencing such Warrant, and a duly
completed and executed transfer form endorsed on the Warrant
Certificate or in the case of Uncertificated Warrants a duly
executed transaction instruction from the holder (or such other
instructions, in form satisfactory to the Warrant Agent) executed
by the registered holder or his executors, administrators or other
legal representatives or his attorney duly appointed by an
instrument in writing in form and execution satisfactory to the
Warrant Agent, if applicable, and, upon compliance with such
requirements and such other reasonable requirements as the Warrant
Agent may prescribe and all applicable securities legislation and
requirements of regulatory authorities, such transfer will be
recorded on the register of transfers by the Warrant Agent. Upon
compliance with such requirements, the Warrant Agent shall issue to
the transferee a Warrant Certificate, or in the case of an
Uncertificated Warrant the Warrant Agent shall Authenticate and
deliver a Warrant Certificate upon request that part of the
Uncertificated Warrant be certificated. Transfers within the
systems of CDS are not the responsibility of the Warrant Agent and
will not be noted on the register maintained by the Warrant
Agent.

 

(3) The transferee of
any Warrant will, after surrender to the Warrant Agent of the
Warrant as required by Section 2.8(2) and upon compliance with all
other conditions in respect thereof required by this Indenture or
by law, be entitled to be entered on the register of holders
referred to in Section 2.8(1) as the owner of such Warrant free
from all equities or rights of set-off or counterclaim between the
Company and the transferor or any previous holder of such Warrant,
except in respect of equities of which the Company is required to
take notice by statute or by order of a court of competent
jurisdiction.

 

(4) The Company will be
entitled, and may direct the Warrant Agent, to refuse to recognize
any transfer, or enter the name of any transferee, of any Warrant
on the registers referred to in Section 2.8(1), if such transfer
would constitute a violation of the Securities Laws of any
applicable jurisdiction or the rules, regulations or policies of
any regulatory authority having jurisdiction. The Warrant Agent is
entitled to assume compliance with all applicable Securities Laws
unless otherwise notified in writing by the Company. No duty shall
rest with the Warrant Agent to determine compliance of the
transferee or transferor of any Warrant with applicable Securities
Laws.

 

 

 

 

(5) Any
Warrant issued to a transferee upon transfers contemplated by this
Section 2.8 shall bear the appropriate legend as set forth in
Section 2.20(2), if applicable.

 

(6) If a Warrant
tendered for transfer bears the legend set forth in Section
2.20(2), the Warrant Agent shall not register such transfer unless
the transferor has provided the Warrant Agent with the Warrant and
complies with the requirements of the said Section
2.20(2).

 

(7) Warrants, in
certificated form, bearing the legend set forth in Section 2.20(2)
shall not be offered, sold, pledged or otherwise transferred,
directly or indirectly, except (A) to the Company, (B) outside the
United States in compliance with Rule 904 of Regulation S under the
U.S. Securities Act and in compliance with applicable local laws
and regulations, (C) in compliance with the exemption from
registration under the U.S. Securities Act provided by (i) Rule 144
thereunder, if available, or (ii) Rule 144A thereunder, if
available, (D) in another transaction that does not require
registration under the U.S. Securities Act or any applicable state
securities laws, or (E) pursuant to a registration statement that
has been declared effective under the U.S. Securities
Act.

 

(8) The Warrant Agent
shall give notice to the Company of the transfer made by a
Warrantholder pursuant to Section 2.8(7) and the Company shall
provide written authorization to proceed with the transfer before
such transfer is made effective by the issuance of the
Warrant.

 

2.9

Registers Open for
Inspection

 

The
registers referred to in Section 2.8(1) shall be open at all
reasonable times during business hours on a Business Day for
inspection by the Company or any Warrantholder. The Warrant Agent
shall, from time to time when requested to do so in writing by the
Company, furnish the Company with a list of the names and addresses
of holders of Warrants entered in the register of holders kept by
the Warrant Agent and showing the number of Warrants held by each
such holder.

 

2.10

Exchange of
Warrants

 

(1) Warrants may, upon
compliance with the reasonable requirements of the Warrant Agent,
be exchanged for Warrants in any other authorized denomination
representing in the aggregate an equal number of Warrants as the
number of Warrants represented by the Warrants being exchanged. The
Company shall sign and the Warrant Agent shall Authenticate or
certify, in accordance with Sections 2.3 and 2.4, all Warrants
necessary to carry out the exchanges contemplated
herein.

 

(2) Warrants may be
exchanged only at the principal stock transfer offices of the
Warrant Agent in the City of Calgary, Alberta or at any other place
that is designated by the Company with the approval of the Warrant
Agent. Any Warrants tendered for exchange shall be surrendered to
the Warrant Agent and cancelled.

 

(3) Except as otherwise
herein provided, the Warrant Agent may charge Warrantholders
requesting an exchange a reasonable sum for each Warrant
Certificate issued; and payment of such charges and reimbursement
of the Warrant Agent or the Company for any and all taxes or
governmental or other charges required to be paid shall be made by
the party requesting such exchange as a condition precedent to such
exchange.

 

2.11

Ownership of
Warrants

 

The
Company and the Warrant Agent and their respective agents may deem
and treat the registered holder of any Warrant as the absolute
owner of the Warrant represented thereby for all purposes and the
Company and the Warrant Agent and their respective agents shall not
be affected by any notice or knowledge to the contrary except as
required by statute or order of a court of competent jurisdiction.
The holder of any Warrant shall be entitled to the rights evidenced
by that Warrant free from all equities or rights of set-off or
counterclaim between the Company and the original or any
intermediate holder thereof, except in respect of equities of which
the Company is required to take notice by statute or by order of a
court of competent jurisdiction and all persons may act accordingly
and the receipt by any holder of the Warrant Shares or monies
obtainable pursuant to the exercise of the Warrant shall be a good
discharge to the Company and the Warrant Agent for the same and
neither the Company nor the Warrant Agent shall be bound to inquire
into the title of any holder.

 

 

 

 

2.12

Uncertificated
Warrants

 

(1) Registration and
re-registration of beneficial interests in and transfers of
Warrants held by CDS shall be made only through the Book-Entry Only
System and no Warrant Certificates shall be issued in respect of
such Warrants except where physical certificates evidencing
ownership in such securities are required or as set out herein or
as may be requested by CDS, as determined by the Company, from time
to time. Except as provided in this Section 2.12, owners of
beneficial interests in any Uncertificated Warrants shall not be
entitled to have Warrants registered in their names and shall not
receive or be entitled to receive Warrants in definitive form or to
have their names appear in the register referred to in Section 2.8
herein. Notwithstanding any terms set out herein, Warrants subject
to the restrictions and any legend set forth in Section 2.20 herein
and held in the name of CDS may only be held in the form of
Uncertificated Warrants with the prior consent of the Company and
CDS.

 

(2) If any Warrant is
issued in uncertificated form and any of the following events
occurs:

 

(a)

CDS or the Company
has notified the Warrant Agent that (A) CDS is unwilling or unable
to continue as depository or (B) CDS ceases to be a clearing agency
in good standing under applicable laws and, in either case, the
Company is unable to locate a qualified successor depository within
90 days of delivery of such notice;

 

(b)

the Company has
determined, in its sole discretion, acting reasonably, to terminate
the Book-Entry Only System in respect of such Uncertificated
Warrants and has communicated such determination to the Warrant
Agent in writing;

 

(c)

the Company or CDS
is required by applicable law to take the action contemplated in
this Section;

 

(d)

there is an
exercise of Warrants pursuant to Section 3.1(4) and the
Warrantholder is unable to make the representations in Section
3.1(4) (a), (b), (c) and (d) thereto; or

 

(e)

the Book-Entry Only
System administered by CDS ceases to exist,

 

then
one or more definitive fully registered Warrant Certificates shall
be executed by the Company and certified and delivered by the
Warrant Agent to CDS in exchange for the Uncertificated Warrants
held by CDS. The Company shall provide an Officer's Certificate
giving notice to the Warrant Agent of the occurrence of any event
outlined in this Section 2.12(2).

 

Fully
registered Warrant Certificates issued and exchanged pursuant to
this Section shall be registered in such names and in such
denominations as CDS shall instruct the Warrant Agent, provided
that the aggregate number of Warrants represented by such Warrant
Certificates shall be equal to the aggregate number of
Uncertificated Warrants so exchanged. Upon exchange of
Uncertificated Warrants for one or more Warrant Certificates in
definitive form, such Uncertificated Warrants shall be cancelled by
the Warrant Agent.

 

(3) Subject to the
provisions of this Section 2.12, any exchange of Warrants for
Warrants which are not Uncertificated Warrants may be made in whole
or in part in accordance with the provisions of Section 2.10,
mutatis mutandis. All such
Warrants issued in exchange for Uncertificated Warrants or any
portion thereof shall be registered in such names as CDS for such
Uncertificated Warrants shall direct and shall be entitled to the
same benefits and subject to the same terms and conditions (except
insofar as they relate specifically to Uncertificated Warrants) as
the Uncertificated Warrants or portion thereof surrendered upon
such exchange.

 

(4) Every Warrant
Authenticated upon registration of transfer of Uncertificated
Warrants, or in exchange for or in lieu of Uncertificated Warrants
or any portion thereof, whether pursuant to this Section 2.12, or
otherwise, shall be Authenticated in the form of, and shall be, an
Uncertificated Warrant, unless such Warrant is registered in the
name of a person other than CDS for such Uncertificated Warrant or
a nominee thereof.

 

 

 

 

(5) Notwithstanding
anything to the contrary in this Indenture, subject to Applicable
Legislation, the Warrants to be issued to CDS or a nominee thereof
will be issued as an Uncertificated Warrant, unless otherwise
requested in writing by CDS or the Company.

 

(6) The rights of
Beneficial Owners of Warrants who hold securities entitlements in
respect of the Warrants through the Book-Entry Only System shall be
limited to those established by applicable law and agreements
between CDS and the Participants and between such Participants and
the Beneficial Owners of Warrants who hold securities entitlements
in respect of the Warrants through the Book-Entry Only System, and
such rights must be exercised through a Participant in accordance
with the rules and procedures of CDS.

 

(7) Notwithstanding
anything herein to the contrary, neither the Company nor the
Warrant Agent nor any agent thereof shall have any responsibility
or liability for:

 

(a)

the electronic
records maintained by CDS relating to any ownership interests or
any other interests in the Warrants or the depository system
maintained by CDS, or payments made on account of any ownership
interest or any other interest of any person in any Warrant
represented by an electronic position in the Book-Entry Only System
(other than CDS or its nominee);

 

(b)

maintaining,
supervising or reviewing any records of CDS or any Participant
relating to any such interest; or

 

(c)

any advice or
representation made or given by CDS or those contained herein that
relate to the rules and regulations of CDS or any action to be
taken by CDS on its own direction or at the direction of any
Participant.

 

(8) The Company may
terminate the application of this Section 2.12 in its sole
discretion, acting reasonably, in which case all Warrants shall be
evidenced by Warrant Certificates registered in the name(s) of a
person other than CDS.

 

2.13

Adjustment of Exchange
Basis

 

Subject
to Section 2.14, the Exchange Basis shall be subject to adjustment
from time to time in the events and in the manner provided as
follows:

 

(1) If and whenever, at
any time after the date hereof and prior to the Time of Expiry, the
Company shall:

 

(a)

issue Subordinate
Voting Shares or securities exercisable, exchangeable for or
convertible into Subordinate Voting Shares to all or substantially
all the holders of the Subordinate Voting Shares as a stock
dividend or other distribution (other than a distribution of
Subordinate Voting Shares upon the exercise of Warrants);
or

 

(b)

subdivide, redivide
or change its then outstanding Subordinate Voting Shares into a
greater number of Subordinate Voting Shares; or

 

(c)

reduce, combine or
consolidate its then outstanding Subordinate Voting Shares into a
lesser number of Subordinate Voting Shares,

 

 

 

 

(any of
such events in these paragraphs (a), (b) or (c) being called a
"Subordinate Voting Share
Reorganization"), then the Exchange Basis in effect on the
effective date of such subdivision or consolidation, or on the
record date of such stock dividend or other distribution, as the
case may be, shall be adjusted by multiplying the Exchange Basis in
effect immediately prior to such effective or record date by a
fraction:

 

(a)

the numerator of
which shall be the total number of Subordinate Voting Shares
outstanding on such date immediately after giving effect to such
Subordinate Voting Share Reorganization (including, in the case
where securities exercisable, exchangeable for or convertible into
Subordinate Voting Shares are distributed, the number of
Subordinate Voting Shares that would have been outstanding had such
securities been exchanged for or converted into Subordinate Voting
Shares on such record date, assuming in any case where such
securities are not then exercisable, convertible or exchangeable
but subsequently become so, that they were exercisable, convertible
or exchangeable on the record date on the basis upon which they
first become exercisable, convertible or exchangeable),
and

 

(b)

the denominator of
which shall be the total number of Subordinate Voting Shares
outstanding on such date before giving effect to such Subordinate
Voting Share Reorganization.

 

The
resulting product, adjusted to the nearest 1/100th, shall
thereafter be the Exchange Basis until further adjusted as provided
in this Article 2. To the extent that any adjustment in the
Exchange Basis occurs pursuant to this Section 2.13(1) as a result
of the fixing by the Company of a record date for the distribution
of securities exercisable or exchangeable for or convertible into
Subordinate Voting Shares and the Subordinate Voting Share
Reorganization does not occur or any conversion or exchange rights
are not fully exercised, the Exchange Basis shall be readjusted
immediately after the expiry of any relevant exchange or conversion
right or the termination of the Subordinate Voting Share
Reorganization, as the case may be, to the Exchange Basis that
would then be in effect, based upon the number of Subordinate
Voting Shares actually issued and remaining issuable pursuant to
the Subordinate Voting Share Reorganization after such expiry and
shall be further readjusted in such manner upon the expiry of any
further such right.

 

(2) If and whenever, at
any time after the date hereof and prior to the Time of Expiry, the
Company shall fix a record date for the distribution to all or
substantially all of the holders of its outstanding Subordinate
Voting Shares of rights, options or warrants entitling them, for a
period expiring not more than 45 days after such record date, to
subscribe for or purchase Subordinate Voting Shares, or securities
exchangeable for or convertible into Subordinate Voting Shares, at
a price per share to the holder (or at an exchange or conversion
price per share) of less than 95% of the Current Market Price on
such record date (any of such events being called a "Rights Offering"), then the Exchange
Basis shall be adjusted effective immediately after such record
date for the Rights Offering by multiplying the Exchange Basis in
effect immediately prior to such record date by a
fraction:

 

(a)

the numerator of
which shall be the number of Subordinate Voting Shares which would
be outstanding after giving effect to the Rights Offering (assuming
the exercise of all of the rights, options or warrants under the
Rights Offering and assuming the exchange for or conversion into
Subordinate Voting Shares of all exchangeable or convertible
securities issued upon exercise of such rights, options or
warrants, if any), and

 

(b)

the denominator of
which shall be the aggregate of:

 

(i)

the total number of
Subordinate Voting Shares outstanding as of the record date for the
Rights Offering, and

 

(ii)

a number of
Subordinate Voting Shares determined by dividing

 

(A)

the amount equal to
the aggregate consideration payable on the exercise of all of the
rights, options and warrants under the Rights Offering plus the
aggregate consideration, if any, payable on the exchange or
conversion of the exchangeable or convertible securities issued
upon exercise of such rights, options or warrants (assuming the
exercise of all rights, options and warrants under the Rights
Offering and assuming the exchange or conversion of all
exchangeable or convertible securities issued upon exercise of such
rights, options and warrants);

 

by

 

(B)

the Current Market
Price as of the record date for the Rights Offering.

 

 

 

 

The
resulting product, adjusted to the nearest 1/100th, shall thereafter
be the Exchange Basis until further adjusted as provided in this
Article 2. Any Subordinate Voting Shares owned by or held for the
account of the Company or any of its Subsidiaries will be deemed
not to be outstanding for the purpose of any computation. If, at
the date of expiry of the rights, options or warrants subject to
the Rights Offering, less than all the rights, options or warrants
have been exercised, then the Exchange Basis shall be readjusted
immediately after the date of expiry to the Exchange Basis that
would have been in effect on the date of expiry if only the rights,
options or warrants issued had been those exercised. If at the date
of expiry of the rights of exchange or conversion of any securities
issued pursuant to the Rights Offering less than all of such
securities have been exchanged or converted into Subordinate Voting
Shares, then the Exchange Basis shall be readjusted immediately
after the date of expiry to the Exchange Basis that would have been
in effect on the date of expiry if only the exchangeable or
convertible securities issued had been those securities actually
exchanged for or converted into Subordinate Voting
Shares.

 

(3) If and whenever, at
any time after the date hereof and prior to the Time of Expiry, the
Company shall fix a record date for the issuance or distribution to
all or substantially all the holders of its outstanding Subordinate
Voting Shares of:

 

(a)

shares of the
Company of any class other than Subordinate Voting Shares;
or

 

(b)

rights, options or
warrants to acquire Subordinate Voting Shares or securities
exchangeable for or convertible into Subordinate Voting Shares;
or

 

(c)

evidences of
indebtedness; or

 

(d)

cash, securities or
any property or other assets,

 

and if
such issuance or distribution does not constitute a Subordinate
Voting Share Reorganization, a Rights Offering or a Capital
Reorganization and is not made in connection with a Capital
Reorganization (any of such non-excluded events being herein called
a "Special Distribution"),
the Exchange Basis shall be adjusted effective immediately after
such record date for the Special Distribution by multiplying the
Exchange Basis in effect immediately prior to such record date by a
fraction:

 

(a)

the numerator of
which shall be the number of Subordinate Voting Shares outstanding
on such record date multiplied by the Current Market Price on such
record date, and

 

(b)

the denominator of
which shall be:

 

(A) 

the number of
Subordinate Voting Shares outstanding on such record date
multiplied by the Current Market Price on such record date,
less

 

(B) 

the fair market
value, as determined by action by the board of directors acting
reasonably and in good faith (whose determination shall be
conclusive), to the holders of the Subordinate Voting Shares of the
shares, rights, options, warrants, evidences of indebtedness or
securities, property or other assets issued or distributed in the
Special Distribution, provided that no such adjustment shall be
made if the result of such adjustment would be to decrease the
Exchange Basis in effect immediately before such record
date.

 

The
resulting product, adjusted to the nearest 1/100th, shall thereafter
be the Exchange Basis until further adjusted as provided in this
Article 2. Any Subordinate Voting Shares owned by or held for the
account of the Company or any of its Subsidiaries will be deemed
not to be outstanding for the purpose of any such
computation.

 

 

 

 

(4) If and whenever, at
any time after the date hereof and prior to the Time of Expiry,
there shall be a reclassification of the Subordinate Voting Shares
at any time outstanding or change or exchange of the Subordinate
Voting Shares into or for other shares or into or for other
securities or property (other than a Subordinate Voting Share
Reorganization), or a consolidation, amalgamation, arrangement or
merger of the Company with or into any other corporation or other
entity (other than a consolidation, amalgamation, arrangement or
merger which does not result in any reclassification of the
outstanding Subordinate Voting Shares or a change or exchange of
the Subordinate Voting Shares into or for other shares, securities
or property), or a transfer (other than to a Subsidiary) of the
undertaking or assets of the Company as an entirety or
substantially as an entirety to another corporation or other entity
(any of such events being herein called a "Capital Reorganization"), any
Warrantholder who thereafter shall exercise his right to receive
Warrant Shares pursuant to Warrant(s) shall be entitled to receive,
and shall accept in lieu of the number of Warrant Shares to which
such holder was theretofore entitled upon such exercise, the
aggregate number of shares, other securities or other property
resulting from the Capital Reorganization which such holder would
have been entitled to receive as a result of such Capital
Reorganization if, on the effective date or record date thereof, as
the case may be, the Warrantholder had been the registered holder
of the number of Warrant Shares to which such holder was
theretofore entitled upon exercise. If appropriate, adjustments
shall be made as a result of any such Capital Reorganization in the
application of the provisions in this Indenture with respect to the
rights and interests thereafter of Warrantholders to the end that
the provisions in this Indenture shall thereafter correspondingly
be made applicable as nearly as may reasonably be possible in
relation to any shares, other securities or other property
thereafter deliverable upon the exercise of any Warrant. Any such
adjustment shall be made by and set forth in an indenture
supplemental hereto approved by the directors of the Company and by
the Warrant Agent and entered into pursuant to the provisions of
this Indenture and shall for all purposes be conclusively deemed to
be an appropriate adjustment.

 

(5) Any adjustment to
the Exchange Basis as set forth herein shall also include a
corresponding adjustment to the Exercise Price which shall be
calculated by multiplying the Exercise Price by a fraction: (a) the
numerator of which shall be the Exchange Basis prior to the
adjustment, and (b) the denominator of which shall be the Exchange
Basis after the adjustment.

 

2.14

Rules Regarding Calculation of
Adjustment of Exchange Basis

 

For the
purposes of Section 2.13:

 

(1) The adjustments
provided for in Section 2.13 shall be cumulative and such
adjustments shall be made successively whenever an event referred
to in Section 2.13 shall occur, subject to the following
subsections of this Section 2.14.

 

(2) No adjustment in
the: (a) Exchange Basis shall be required unless such adjustment
would result in a change of at least 0.01 of a Warrant Share based
on the prevailing Exchange Basis; or (b) Exercise Price shall be
required unless such adjustment would result in a change of at
least 1% of the Exercise Price, provided that any adjustments
which, except for the provisions of this subsection, would
otherwise have been required to be made, shall be carried forward
and taken into account in any subsequent adjustment.

 

(3) No adjustment in
the Exchange Basis or Exercise Price shall be made in respect of
any event described in Section 2.13, other than the events referred
to in paragraphs (b) and (c) of subsection (1) thereof, if
Warrantholders are entitled to participate in such event on the
same terms, mutatis
mutandis, as if Warrantholders had exercised their Warrants
prior to or on the effective date or record date of such event, any
such participation being subject to regulatory
approval.

 

(4) No adjustment in
the Exchange Basis or the Exercise Price shall be made pursuant to
Section 2.13 in respect of (i) the issue from time to time of
Warrant Shares purchasable on exercise of the Warrants and any such
issue shall be deemed not to be a Subordinate Voting Share
Reorganization; (ii) a Dividend Paid in the Ordinary Course; or
(iii) a distribution of Subordinate Voting Shares as compensation
securities, pursuant to incentive plans of the Company, pursuant to
the exercise or vesting of stock options or other compensation
securities granted under incentive plans of the Company or pursuant
to the conversion, exchange, redemption or exercise of any
convertible, exchangeable, redeemable or exercisable securities
outstanding as of the date hereof (or pursuant to the conversion,
exchange, redemption or exercise of any securities issued upon any
such conversion, exchange, redemption or exercise).

 

(5) If a dispute shall
at any time arise with respect to adjustments provided for in
Section 2.13, such dispute shall, absent manifest error, be
conclusively determined by the Company's Auditors, or if they are
unable or unwilling to act, by such other firm of independent
chartered accountants as may be selected by the directors and any
further determination, absent manifest error, shall be binding upon
the Company, the Warrant Agent and the Warrantholders.

 

(6) If the Company
shall set a record date to determine the holders of the Subordinate
Voting Shares for the purpose of entitling them to receive any
dividend or distribution or any subscription or purchase rights and
shall, thereafter and before the distribution to such shareholders
of any such dividend, distribution, or subscription or purchase
rights, legally abandon its plan to pay or deliver such dividend,
distribution, or subscription or purchase rights, then no
adjustment in the Exchange Basis shall be required by reason of the
setting of such record date.

 

 

 

 

(7) In the absence of a
resolution of the directors fixing a record date for a Rights
Offering or Special Distribution, the Company shall be deemed to
have fixed as the record date therefor the date on which the Rights
Offering or Special Distribution is effected.

 

(8) If the purchase
price provided for in any Rights Offering (the "Rights Offering Price") is decreased,
the Exchange Basis shall forthwith be changed so as to increase the
Exchange Basis to such Exchange Basis as would have been obtained
had the adjustment to the Exchange Basis made pursuant to Section
2.13(2) upon the issuance of such Rights Offering been made upon
the basis of the Rights Offering Price as so decreased, provided
that the provisions of this subsection shall not apply to any
decrease in the Rights Offering Price resulting from provisions in
any such Rights Offering designed to prevent dilution if the event
giving rise to such decrease in the Rights Offering Price itself
requires an adjustment to the Exchange Basis pursuant to the
provisions of Section 2.13.

 

(9) As a condition
precedent to the taking of any action that would require any
adjustment in any of the subscription rights pursuant to any of the
Warrants, including the Exchange Basis, the Company shall take any
corporate action which may, in the opinion of Counsel, be necessary
in order that the Company have unissued and reserved in its
authorized capital and may validly and legally issue as fully paid
and non-assessable all the shares or other securities that all the
holders of such Warrants are entitled to receive on the exercise of
all the subscription rights attaching thereto in accordance with
the provisions thereof.

 

(10) In
case the Company, after the date hereof and prior to the Time of
Expiry, shall take any action affecting any Subordinate Voting
Shares, other than action described in Section 2.13, which in the
opinion of the directors acting reasonably and in good faith would
materially affect the rights of Warrantholders, the Exchange Basis
shall be adjusted in such manner, if any, and at such time, as the
directors, in their sole discretion acting reasonably and in good
faith, may determine to be equitable in the circumstances. Failure
of the taking of action by the directors so as to provide for an
adjustment in the Exchange Basis prior to the effective date of any
action by the Company affecting the Subordinate Voting Shares shall
be conclusive evidence that the directors have determined that it
is equitable to make no adjustment in the
circumstances.

 

(11) The
Warrant Agent shall be entitled to act and rely on any adjustment
calculations by the Company or the Company's Auditors.

 

2.15

Postponement of
Subscription

 

In any
case where the application of Section 2.13 results in an increase
in the number of Subordinate Voting Shares that are issuable upon
exercise of the Warrants taking effect immediately after the record
date for a specific event, if any Warrant is exercised after that
record date and prior to completion of such specific event, the
Company may postpone the issuance to the Warrantholder of the
Warrant Shares to which he is entitled by reason of such
adjustment, but such Warrant Shares shall be so issued and
delivered to that holder upon completion of that event, with the
number of such Warrant Shares calculated on the basis of the number
of Warrant Shares on the date that the Warrant was exercised,
adjusted for completion of that event and the Company shall deliver
to the person or persons in whose name or names the Warrant Shares
are to be issued an appropriate instrument evidencing the right of
such person or persons to receive such Warrant Shares and the right
to receive any dividends or other distributions which, but for the
provisions of this Section 2.15, such person or persons would have
been entitled to receive in respect of such Warrant Shares from and
after the date that the Warrant was exercised in respect
thereof.

 

2.16

Notice of
Adjustment

 

(1) At least 14 days
prior to the effective date or record date, as the case may be, of
any event which requires or might require adjustment pursuant to
Section 2.13, the Company shall:

 

(a)

file with the
Warrant Agent a certificate of the Company specifying the
particulars of such event (including the record date or the
effective date for such event) and, if determinable, the required
adjustment and the computation of such adjustment and setting forth
in reasonable detail the method of calculation and the facts upon
which such calculation is based; and

 

(b)

give notice to the
Warrantholders of the particulars of such event (including the
record date or the effective date for such event) and, if
determinable, the required adjustment.

 

 

 

 

(2) In case any
adjustment for which a notice in Section 2.16(1) has been given is
not then determinable, the Company shall promptly after such
adjustment is determinable:

 

(a)

file with the
Warrant Agent a computation of such adjustment; and

 

(b)

give notice to the
Warrantholders of the adjustment.

 

(3) The Warrant Agent
may and shall be protected in so doing, absent manifest error, act
and rely upon certificates of the Company and other documents filed
by the Company pursuant to this Section 2.16 for all purposes of
the adjustment.

 

2.17

No Action after
Notice

 

The
Company covenants with the Warrant Agent that it will not close its
books nor take any other corporate action which might deprive a
Warrantholder of the opportunity of exercising the rights of
acquisition pursuant thereto during the period of 10 days after the
giving of the notice set forth in paragraph (b) of Sections 2.16(1)
and (2).

 

2.18

Purchase of Warrants for
Cancellation

 

The
Company may, at any time and from time to time, purchase Warrants
by invitation for tender, by private contract, on any stock
exchange (if then listed) or otherwise (which shall include a
purchase through an investment dealer or firm holding membership on
a Canadian stock exchange) on such terms as the Company may
determine. All Warrants purchased pursuant to the provisions of
this Section 2.18 shall be forthwith delivered to and cancelled by
the Warrant Agent and shall not be reissued. If required by the
Company, the Warrant Agent shall furnish the Company with a
certificate as to such destruction.

 

2.19

Protection of Warrant
Agent

 

The
Warrant Agent shall not:

 

(a)

at any time be
under any duty or responsibility to any registered holder of
Warrants to determine whether any facts exist that may require any
adjustment contemplated by this Article 2, nor to verify the nature
and extent of any such adjustment when made or the method employed
in making the same;

 

(b)

be accountable with
respect to the validity or value or the kind or amount of any
Warrant Shares or of any other securities or property that may at
any time be issued or delivered upon the exercise of the
Warrants;

 

(c)

be responsible for
any failure of the Company to make any cash payment, to issue,
transfer or deliver Warrant Shares or certificates upon the
surrender of any Warrants for the purpose of the exercise of such
rights or to comply with any of the covenants contained in Section
2.13; or

 

(d)

incur any liability
or responsibility whatsoever or be in any way responsible for the
consequence of any breach on the part of the Company of any of the
representations, warranties or covenants of the Company or any acts
or deeds of the agents or servants of the Company.

 

2.20

U.S. Legend on Warrant Certificates
and Warrant Share certificates

 

(1) The Warrant Agent
understands and acknowledges that the Warrants and the Warrant
Shares issuable upon exercise of the Warrants have not been, and
will not be, registered under the U.S. Securities Act or the
securities laws of any state of the United States.

 

 

 

 

(2) Each Warrant, in
certificated form, originally issued in the United States or, to or
for the account or benefit of, a U.S. Person, and all Warrant
Shares issued upon exercise of such Warrants, and all certificates
issued in exchange or in substitution thereof or upon transfer
thereof, shall bear the following legend:

 

"THE
SECURITIES REPRESENTED HEREBY [For Warrants: AND THE SECURITIES
ISSUABLE UPON EXERCISE HEREOF] HAVE NOT BEEN AND WILL NOT BE
REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE "U.S. SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY
STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING SUCH
SECURITIES, AGREES FOR THE BENEFIT OF INDUS HOLDINGS, INC. (THE
"CORPORATION") THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED
OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION,
(B) OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 904 OF
REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH
APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN COMPLIANCE WITH THE
EXEMPTION FROM REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED
BY (1) RULE 144 THEREUNDER, IF AVAILABLE, OR (2) RULE 144A
THEREUNDER, IF AVAILABLE, AND, IN BOTH CASES, IN COMPLIANCE WITH
APPLICABLE STATE SECURITIES LAWS, (D) IN ANOTHER TRANSACTION THAT
DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY
APPLICABLE STATE SECURITIES LAWS, OR (E) PURSUANT TO A REGISTRATION
STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE U.S.
SECURITIES ACT, AND, IN THE CASE OF (C)(1) AND (D) ABOVE, AFTER THE
SELLER FURNISHES TO THE CORPORATION AN OPINION OF COUNSEL OF
RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY SATISFACTORY
TO THE CORPORATION TO SUCH EFFECT. "UNITED STATES" AND "U.S.
PERSON" ARE AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES
ACT." DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD
DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN
CANADA."

 

[if a
Warrant: "THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE
HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT") OR THE
SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. THIS WARRANT MAY
NOT BE EXERCISED IN THE UNITED STATES OR BY OR ON BEHALF OF A U.S.
PERSON OR PERSON IN THE UNITED STATES UNLESS THIS WARRANT AND
SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES
LEGISLATION OF ANY SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION
REQUIREMENTS ARE AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE
AS DEFINED BY REGULATION S UNDER THE U.S. SECURITIES
ACT."]

 

provided that, if at the time of
issuance of the Warrants the Company is a "foreign issuer" within
the meaning of Regulation S and the Warrants or Warrant Shares
issuable upon exercise of the Warrants are being sold in accordance
with Rule 904 of Regulation S, the legend may be removed by
providing to the Warrant Agent or the Transfer Agent, as the case
may be, (i) a declaration in the form attached hereto as Schedule
"B" (or as the Company may prescribe from time to time in order to
address changes in applicable laws) and (ii) if required by the
Transfer Agent, an opinion of Counsel, of recognized standing
reasonably satisfactory to the Company, or other evidence
reasonably satisfactory to the Company, that the proposed transfer
may be effected without registration under the U.S. Securities Act;
provided further, that, if
any of such Warrants or Warrant Shares issuable upon exercise of
the Warrants are being sold pursuant to Rule 144, if available,
under the U.S. Securities Act, the legend may be removed by
delivery to the Company, Warrant Agent and the Transfer Agent of an
opinion of Counsel of recognized standing in form and substance
reasonably satisfactory to the Company to the effect that the
legend is no longer required under applicable requirements of the
U.S. Securities Act or state securities laws.

 

(3) If a Warrant or
Warrant Share issued with respect to an exercise of Warrants is
tendered for transfer and bears the legend set forth in Section
2.20(2) herein and the holder thereof has not obtained the prior
written consent of the Company, the Warrant Agent or the Transfer
Agent, as the case may be, shall not register such transfer unless
the holder complies with the requirements of the said Section
2.20(2) hereof.

                  

 

 

 

ARTICLE
3

EXERCISE OF WARRANTS

 

3.1

Method of Exercise of
Warrants

 

(1) The registered
holder of any Warrant may exercise the rights thereby conferred on
him to acquire all or any part of the Warrant Shares to which such
Warrant entitles the holder, by surrendering the Warrant
Certificate representing such Warrants to the Warrant Agent at any
time prior to the Time of Expiry at its principal stock transfer
offices in the City of Calgary, Alberta (or at such additional
place or places as may be decided by the Company from time to time
with the approval of the Warrant Agent), with a duly completed and
executed exercise form of the registered holder or his executors,
administrators or other legal representative or his attorney duly
appointed by an instrument in writing in the form and manner
satisfactory to the Warrant Agent, substantially in the form
endorsed on the Warrant Certificate specifying the number of
Warrant Shares subscribed for together with a certified cheque,
bank draft or money order in lawful money of Canada, payable to or
to the order of the Company in an amount equal to the Exercise
Price multiplied by the number of Warrant Shares subscribed for. A
Warrant Certificate with the duly completed and executed exercise
form and payment of the Exercise Price shall be deemed to be
surrendered only upon personal delivery thereof to or, if sent by
mail or other means of transmission, upon actual receipt thereof by
the Warrant Agent.

 

(2) Any exercise form
referred to in Section 3.1(1) shall be signed by the Warrantholder,
or his executors, or administrators or other legal representative
or his attorney duly appointed by an instrument in writing in the
form and manner satisfactory to the Warrant Agent, but such
exercise form need not be executed by CDS. Such exercise form shall
specify the person(s) in whose name such Warrant Shares are to be
issued, the address(es) of such person(s) and the number of Warrant
Shares to be issued to each person, if more than one is so
specified. If any of the Warrant Shares subscribed for are to be
issued to person(s) other than the Warrantholder, the Warrantholder
shall also complete the transfer form, substantially in the form
endorsed on the Warrant Certificate. The signatures set out in the
exercise form referred to in Section 3.1(1) and the signatures set
out in the transfer form shall be guaranteed by a Canadian Schedule
1 chartered bank or a medallion signature guarantee from a member
of a recognized Signature Medallion Guarantee Program and the
Warrantholder shall pay to the Company or the Warrant Agent all
applicable transfer or similar taxes and the Company shall not be
required to issue or deliver certificates evidencing Warrant Shares
unless or until such Warrantholder shall have paid to the Company
or the Warrant Agent on behalf of the Company the amount of such
tax or shall have established to the satisfaction of the Company
that such tax has been paid or that no tax is due.

 

(3) If, at the time of
exercise of the Warrants, in accordance with the provisions of
Section 3.1(1), there are any trading restrictions on the Warrant
Shares pursuant to applicable securities legislation or stock
exchange requirements, the Company shall, on the advice of Counsel,
endorse any certificates representing the Warrant Shares to such
effect. The Warrant Agent is entitled to assume compliance with all
applicable securities legislation unless otherwise notified in
writing by the Company.

 

(4) A Beneficial Owner
who desires to exercise his Uncertificated Warrants, must do so by
causing a Participant to deliver to CDS (at its office in the City
of Toronto, Ontario), on behalf of the Beneficial Owner at any time
prior to the Time of Expiry, a written notice of the Beneficial
Owner's intention to exercise Warrants (the "Exercise Notice"); provided, that a
Beneficial Owner holding Uncertificated Warrants that is in the
United States or that is a U.S. Person will first request the
withdrawal of the Uncertificated Warrant(s) from the Book-Entry
Only System and request certificated Warrant(s) in exchange for
such Uncertificated Warrant(s). Forthwith upon receipt by CDS of
such notice, as well as payment for the Exercise Price, CDS shall
deliver to the Warrant Agent confirmation of its intention to
exercise Warrants (the "Confirmation") in a manner acceptable to
the Warrant Agent, including by electronic means through the
Book-Entry Only System, including CDSX. An electronic exercise of
the Warrants initiated by the Beneficial Owner through a Book-Entry
Only System, including CDSX, shall constitute a representation to
both the Company and the Warrant Agent that the Beneficial Owner at
the time of exercise of such Warrants (a) is not in the United
States; (b) did not acquire the Warrants in the United States or on
behalf of, or for the account or benefit of, a U.S. Person or a
person in the United States; (c) is not a U.S. Person and is not
exercising such Warrants on behalf of a U.S. Person or a person in
the United States; and (d) did not execute or deliver the notice of
the owner's intention to exercise such Warrants in the United
States. If the Participant is not able to make or deliver the
foregoing representation by initiating the electronic exercise of
the Warrants, then such Warrants shall be withdrawn from the
Book-Entry Only System, including CDSX, by the Participant and an
individually registered Warrant Certificate shall be issued by the
Warrant Agent to such Beneficial Owner or Participant and the
exercise procedures set forth in Section 3.1(1) shall be followed.
Payment representing the aggregate Exercise Price must be provided
to the appropriate office of the Participant in a manner acceptable
to it. A notice in form acceptable to the Participant and payment
from such Beneficial Owner should be provided through the
Book-Entry Only System sufficiently in advance so as to permit the
Participant to deliver notice and payment to CDS and for CDS in
turn to deliver notice and payment to the Warrant Agent prior to
Time of Expiry. CDS will initiate the exercise by way of the
Confirmation and forward the aggregate Exercise Price
electronically to the Warrant Agent and the Warrant Agent will
execute the exercise by issuing to CDS through the Book-Entry Only
System the Warrant Shares to which the exercising Beneficial Owner
is entitled pursuant to the exercise. Any expense associated with
the preparation and delivery of Exercise Notices will be for the
account of the Beneficial Owner exercising the
Warrants.

 

 

 

 

(5) By causing a
Participant to deliver notice to CDS, a Warrantholder shall be
deemed to have irrevocably surrendered his Warrants so exercised
and appointed such Participant to act as his exclusive settlement
agent with respect to the exercise and the receipt of Warrant
Shares in connection with the obligations arising from such
exercise.

 

(6) Any notice which
CDS determines to be incomplete, not in proper form or not duly
executed shall for all purposes be void and of no effect and the
exercise to which it relates shall be considered for all purposes
not to have been exercised thereby. A failure by a Participant to
exercise or to give effect to the settlement thereof in accordance
with the Beneficial Owner's instructions will not give rise to any
obligations or liability on the part of the Company or Warrant
Agent to the Participant or the Beneficial Owner.

 

(7) Any exercise
referred to in this Section 3.1 shall require that the entire
Exercise Price for the Warrant Shares subscribed for must be paid
at the time of subscription and such Exercise Price and original
Exercise Notice or exercise form executed by the Registered
Warrantholder or the Confirmation from CDS must be received by the
Warrant Agent prior to the Time of Expiry.

 

(8) Warrants may only
be exercised pursuant to this Section 3.1 by or on behalf of a
Warrantholder, as applicable, who makes the certifications set
forth on the exercise form substantially in the form endorsed on
the Warrant Certificate.

 

(9) If the exercise
form set forth in the Warrant Certificate shall have been amended,
the Company shall cause the amended exercise form to be forwarded
to all registered Warrantholders.

 

(10) Exercise
forms, Exercise Notices and Confirmations must be delivered to the
Warrant Agent at any time during the Warrant Agent's actual
business hours on any Business Day prior to the Time of Expiry. Any
exercise form, Exercise Notice or Confirmation received by the
Warrant Agent after business hours on any Business Day other than
the Time of Expiry will be deemed to have been received by the
Warrant Agent on the next following Business Day.

 

(11) Any
Warrant with respect to which a Confirmation is not received by the
Warrant Agent before the Time of Expiry shall be deemed to have
expired and become void and all rights with respect to such
Warrants shall terminate and be cancelled.

 

3.2

No Fractional
Shares

 

Under
no circumstances shall the Company be obliged to issue any
fractional Warrant Shares or any cash or other consideration in
lieu thereof upon the exercise of one or more Warrants. To the
extent that the holder of one or more Warrants would otherwise have
been entitled to receive on the exercise or partial exercise
thereof a fraction of a Warrant Share, that holder may exercise
that right in respect of the fraction only in combination with
another Warrant or Warrants that in the aggregate entitle the
holder to purchase a whole number of Warrant Shares.

 

3.3

Effect of Exercise of
Warrants

 

(1) Upon compliance by
the Warrantholder with the provisions of Section 3.1, the Warrant
Shares subscribed for shall be deemed to have been issued and the
person to whom such Warrant Shares are to be issued shall be deemed
to have become the holder of record of such Warrant Shares on the
Exercise Date unless the transfer registers of the Company for the
Subordinate Voting Shares shall be closed on such date, in which
case the Warrant Shares subscribed for shall be deemed to have been
issued and such person shall be deemed to have become the holder of
record of such Warrant Shares on the date on which such transfer
registers are reopened.

 

(2) The Warrant Agent
shall as soon as practicable account to the Company with respect to
Warrants exercised, and shall as soon as practicable forward to the
Company (or into an account or accounts of the Company with the
bank or trust company designated by the Company for that purpose),
all monies received by the Warrant Agent on the subscription of
Warrant Shares through the exercise of Warrants. All such monies
and any securities or other instruments, from time to time received
by the Warrant Agent, shall be received in trust for the
Warrantholders and the Company as their interests may appear and
shall be segregated and kept apart by the Warrant
Agent.

 

 

 

 

(3) Within five
Business Days following the due exercise of a Warrant pursuant to
Section 3.1, the Company shall cause the Transfer Agent to issue
and the Warrant Agent to deliver, within such five Business Day
period, to CDS through the Book-Entry Only System the Warrant
Shares to which the exercising Warrantholder is entitled pursuant
to the exercise or mail to the person in whose name the Warrant
Shares so subscribed for are to be issued, as specified in the
exercise form completed on the Warrant Certificate, at the address
specified in such exercise form, a certificate or certificates for
the Warrant Shares to which the Warrantholder is entitled or, if so
specified in writing by the holder, cause to be delivered to such
person or persons at the office of the Warrant Agent where the
Warrant Certificate was surrendered, a certificate or certificates
for the appropriate number of Warrant Shares subscribed for, or any
other appropriate evidence of the issuance of Warrant Shares to
such person or persons in respect of Warrant Shares issued under
the Book-Entry Only System and, if applicable, shall cause the
Warrant Agent to mail a Warrant Certificate representing any
Warrants not then exercised.

 

3.4

Cancellation of
Warrants

 

All
Warrants surrendered to the Warrant Agent pursuant to Sections 2.6,
2.8(2), 2.10 or 3.1 shall be cancelled by the Warrant Agent and the
Warrant Agent shall record the cancellation of such Warrants on the
register of holders maintained by the Warrant Agent pursuant to
Section 2.8(1). The Warrant Agent shall, if required by the
Company, furnish the Company with a certificate identifying the
Warrants so cancelled. All Warrants that have been duly cancelled
shall be without further force or effect whatsoever.

 

3.5

Subscription for less than
Entitlement

 

The
holder of any Warrant may subscribe for and purchase a whole number
of Warrant Shares that is less than the number that the holder is
entitled to purchase pursuant to a surrendered Warrant. In such
event, the holder thereof shall be entitled to receive a new
Warrant Certificate in respect of the balance of Warrants that were
not then exercised, such new Warrant Certificate to contain the
same legend as provided for in Section 2.20(2), if
applicable.

 

3.6

Expiration of
Warrant

 

After
the Time of Expiry, all rights under any Warrant in respect of
which the right of subscription and purchase herein and therein
provided for shall not theretofore have been exercised shall wholly
cease and terminate and such Warrant shall be void and of no
effect.

 

3.7

Prohibition on Exercise by U.S.
Persons; Exception

 

(1) Warrants may not be
exercised within the United States or by or on behalf of, or for
the account or benefit of, any U.S. Person or any person in the
United States unless an exemption is available from the
registration requirements of the U.S. Securities Act and applicable
state securities laws. The Warrant Agent shall be entitled to rely
upon the registered address of the Warrantholder as set forth in
the Warrantholders register for the purchase of Units in
determining whether the address is in the United States or the
Warrantholder is a U.S. Person.

 

(2) Any holder which
exercises any Warrants shall provide to the Company
either:

 

(a)

a written
certification that such holder (a) at the time of exercise of the
Warrants is not in the United States; (b) is not a U.S. Person and
is not exercising the Warrants on behalf of a U.S. Person or person
in the United States; (c) did not execute or deliver the exercise
form for the Warrants in the United States; and (d) has in all
other aspects complied with the terms of an "offshore transaction"
as defined under Regulation S; or

 

(b)

a written
certification that such holder is the original U.S. Purchaser and
(a) purchased the Warrants directly from the Company pursuant to a
duly executed qualified institutional buyer letter ("QIB Letter") for the purchase of
Warrants; (b) is exercising the Warrants solely for its own account
or for the account of the original beneficial purchaser, if any;
(c) each of it and any beneficial purchaser was on the date the
Warrants were purchased from the Company, and is on the date of
exercise of the Warrants, a "qualified institutional buyer" as
defined under Rule 144A under the U.S. Securities Act
("Qualified Institutional
Buyer"); and (d) all the representations, warranties and
covenants set forth in the QIB Letter (including any required
certifications set forth therein) made by such holder for the
purchase of Warrants from the Company continue to be true and
correct as if duly executed as of the date thereof; or

 

 

 

 

(c)

a written opinion
of Counsel of recognized standing in form and substance
satisfactory to the Company or other evidence satisfactory to the
Company to the effect that an exemption from the registration
requirements of the U.S. Securities Act and applicable state
securities laws is available for the issuance of the Warrant Shares
issuable on exercise of the Warrants; provided, however, that a
holder who is an "accredited investor" as defined in Rule 501(a) of
Regulation D under the U.S. Securities Act ("Accredited Investor") at the time of
exercise of the Warrants and who purchased Units in a
transaction exempt from registration under the U.S. Securities Act
and applicable state securities laws as either a Qualified
Institutional Buyer or an Accredited Investor will not be required
to deliver an opinion of Counsel or such other evidence in
connection with the exercise of Warrants that are part of those
Units.

 

(3) No Warrant Shares
will be registered or delivered to an address in the United States
unless the holder of Warrants complies with the requirements of
paragraph (b) or (c) of Section 3.7(2).

 

ARTICLE
4

COVENANTS FOR WARRANTHOLDERS' BENEFIT

 

4.1

General Covenants of the
Company

 

The
Company represents, warrants and covenants with the Warrant Agent
for the benefit of the Warrant Agent and the Warrantholders
that:

 

(1) The Company will at
all times, so long as any Warrants remain outstanding or issuable
hereunder, maintain its existence, unless otherwise inconsistent
with the fiduciary duties of the board of directors of the
Company.

 

(2) The Company is duly
authorized to create and issue the Warrants to be issued hereunder
and the Warrants, when issued, Authenticated and countersigned, as
applicable, will be legal, valid, binding and enforceable
obligations of the Company.

 

(3) The Company will
reserve and keep available a sufficient number of Warrant Shares
for the purpose of enabling the Company to satisfy its obligations
to issue Subordinate Voting Shares upon the exercise of the
Warrants, and all Warrant Shares shall, when issued as provided
herein, be valid and enforceable against the Company.

 

(4) The Company will
cause the Warrant Shares from time to time subscribed for pursuant
to the Warrants issued by the Company hereunder, in the manner
herein provided, to be duly issued in accordance with the Warrants
and the terms hereof.

 

(5) All Warrant Shares
that shall be issued by the Company upon exercise of the rights
provided for herein shall be issued as fully paid and
non-assessable.

 

(6) The Company will
use commercially reasonable efforts to ensure that the Warrants, if
and when listed, and the Subordinate Voting Shares outstanding on
the date hereof and issuable from time to time on the exercise of
the Warrants, continue to be listed and posted for trading on the
CSE (or such other Canadian or United States stock exchange
acceptable to the Company), provided that this Section 4.1(6) shall
not be construed as limiting or restricting the Company from
completing a consolidation, amalgamation, arrangement, takeover
bid, merger or other form of business combination or other
transaction that would result in the Warrants and/or the
Subordinate Voting Shares ceasing to be listed and posted for
trading on such exchanges, so long as the shareholders of the
Company have approved the transaction in accordance with applicable
corporate and securities laws and the policies of such exchanges or
the holders of Subordinate Voting Shares receive securities of an
entity which is listed on a stock exchange in North America or
cash.

 

 

 

 

(7) Except to the
extent that the Company participates in a takeover bid,
consolidation, merger, arrangement, amalgamation, or other form of
business combination, acquisition or sale transaction, the Company
will use its commercially reasonable efforts to maintain its status
as a "reporting issuer" (or the equivalent thereof) in each of the
provinces of Canada and other Canadian jurisdictions in which it is
currently or becomes a reporting issuer, and to make all requisite
filings under applicable Securities Laws, including those necessary
to so remain a reporting issuer, so as to not be materially in
default of the requirements of the applicable Securities Laws of
such province or jurisdiction until the Time of
Expiry.

 

(8) The Company will
perform and carry out all of the acts or things to be done by it as
provided in this Indenture.

 

(9) The Company will
promptly advise the Warrant Agent in writing of any breach or
default under the terms of this Indenture no later than five
Business Days following the occurrence of such breach or
default.

 

(10) If,
in the opinion of Counsel, any instrument is required to be filed
with, or any permission, order or ruling is required to be obtained
from any securities regulatory authority, or any other step is
required under any federal or provincial law of Canada before the
Warrant Shares may be issued and delivered to a Warrantholder, the
Company covenants that it will use its commercially reasonable
efforts to file such instrument, obtain such permission, order or
ruling or take all such other steps, at its expense, as are
required or appropriate in the circumstances.

 

4.2

Warrant Agent's Remuneration and
Expenses

 

The
Company covenants that it will pay to the Warrant Agent from time
to time reasonable remuneration for its services hereunder and will
pay or reimburse the Warrant Agent upon its request for all
reasonable expenses and disbursements and advances incurred or made
by the Warrant Agent in the administration or execution of the
trusts hereby created (including the reasonable compensation and
the disbursements of its Counsel and all other advisers, experts,
accountants and assistants not regularly in its employ) both before
any default hereunder and thereafter until all duties of the
Warrant Agent hereunder shall be finally and fully performed. Any
amount owing hereunder and remaining unpaid after 30 days from the
invoice date will bear interest at the then current rate charged by
the Warrant Agent against unpaid invoices and shall be payable upon
demand. This Section shall survive the resignation or removal of
the Warrant Agent and/or the termination of this
Indenture.

 

4.3

Performance of Covenants by Warrant
Agent

 

Subject
to Section 8.7, if the Company shall fail to perform any of its
covenants contained in this Indenture and the Company has not
rectified such failure within 25 Business Days after either giving
notice of such default pursuant to Section 4.1(9) or receiving
written notice from the Warrant Agent of such failure, the Warrant
Agent may notify the Warrantholders of such failure on the part of
the Company or may itself perform any of the said covenants capable
of being performed by it, but shall be under no obligation to
perform said covenants. All reasonable sums expended or disbursed
by the Warrant Agent in so doing shall be repayable as provided in
Section 4.2. No such performance, expenditure or advance by the
Warrant Agent shall be deemed to relieve the Company of any default
hereunder or of its continuing obligations under the covenants
herein contained.

 

4.4

Enforceability of
Warrants

 

The
Company covenants and agrees that it is duly authorized to create
and issue the Warrants to be issued hereunder and that the
Warrants, when issued and Authenticated as herein provided, will be
valid and enforceable against the Company in accordance with the
provisions hereof and that, subject to the provisions of this
Indenture, the Company will cause the Warrant Shares from time to
time acquired upon exercise of Warrants issued under this Indenture
to be duly issued and delivered in accordance with the terms of
this Indenture.

 

 

 

  

ARTICLE
5

ENFORCEMENT

 

5.1

Suits by
Warrantholders

 

Subject
to Section 6.10, all or any of the rights conferred upon a
Warrantholder by the terms of the Warrants held by him and/or this
Indenture may be enforced by such Warrantholder by appropriate
legal proceedings but without prejudice to the right that is hereby
conferred upon the Warrant Agent to proceed in its own name to
enforce each and all of the provisions herein contained for the
benefit of the holders of the Warrants from time to time
outstanding. The Warrant Agent shall also have the power at any
time and from time to time to institute and to maintain such suits
and proceedings as it may reasonably be advised shall be necessary
or advisable to preserve and protect its interests and the
interests of the Warrantholders.

 

Subject
to applicable law, the Warrant Agent and, by acceptance of a
Warrant Certificate or Uncertificated Warrant, as applicable, and
as part of the consideration for the issue of the Warrants, the
Warrantholders hereby waive and release any right, cause of action
or remedy now or hereafter existing in any jurisdiction against any
person in its capacity as an incorporator or any past, present or
future shareholder, director, officer, employee or agent of the
Company for the creation and issue of the Subordinate Voting Shares
pursuant to any Warrant or any covenant, agreement, representation
or warranty by the Company herein or contained in a Warrant
Certificate or Uncertificated Warrant, as applicable.

 

5.2

Limitation of
Liability

 

The
obligations hereunder (including without limitation under Section
8.7(5)) are not personally binding upon, nor shall resort hereunder
be had to, the private property of any of the past, present or
future directors or shareholders of the Company or any of the past,
present or future officers, employees or agents of the Company, but
only the property of the Company (or any successor person) shall be
bound in respect hereof.

 

5.3

Waiver of Default

 

Upon
the happening of any default hereunder:

 

(a)

the Warrantholders
of not less than 51% of the Warrants then outstanding shall have
power (in addition to the powers exercisable by Extraordinary
Resolution) by requisition in writing to instruct the Warrant Agent
to waive any default hereunder and the Warrant Agent shall
thereupon waive the default upon such terms and conditions as shall
be prescribed in such requisition; or

 

(b)

the Warrant Agent
shall have power to waive any default hereunder upon such terms and
conditions as the Warrant Agent may deem advisable, on the advice
of Counsel, if, in the Warrant Agent's opinion, based on the advice
of Counsel, the same shall have been cured or adequate provision
made therefor,

 

provided that no
delay or omission of the Warrant Agent or of the Warrantholders to
exercise any right or power accruing upon any default shall impair
any such right or power or shall be construed to be a waiver of any
such default or acquiescence therein and provided further that no
act or omission either of the Warrant Agent or of the
Warrantholders in the premises shall extend to or be taken in any
manner whatsoever to affect any subsequent default hereunder of the
rights resulting therefrom.

 

 

 

 

ARTICLE
6

MEETINGS OF WARRANTHOLDERS

 

6.1

Right to Convene
Meetings

 

The
Warrant Agent may at any time and from time to time, and shall on
receipt of a written request of the Company or of a Warrantholders'
Request, convene a meeting of the Warrantholders provided that the
Warrant Agent has been provided with sufficient funds and is
indemnified to its reasonable satisfaction by the Company or by the
Warrantholders signing such Warrantholders' Request against the
costs, charges, expenses and liabilities that may be incurred in
connection with the calling and holding of such meeting. If within
15 Business Days after the receipt of a written request of the
Company or a Warrantholders' Request, funding and indemnity given
as aforesaid the Warrant Agent fails to give the requisite notice
specified in Section 6.2 to convene a meeting, the Company or such
Warrantholders, as the case may be, may convene such meeting. Every
such meeting shall be held in the City of Toronto, Ontario or at
such other place as may be approved or determined by the Warrant
Agent.

 

6.2

Notice

 

At
least 14 days prior notice of any meeting of Warrantholders shall
be given to the Warrantholders at the expense of the Company in the
manner provided for in Section 9.2 and a copy of such notice shall
be delivered to the Warrant Agent unless the meeting has been
called by it, and to the Company unless the meeting has been called
by it. Such notice shall state the date, time and place of the
meeting, the general nature of the business to be transacted and
shall contain such information as is reasonably necessary to enable
the Warrantholders to make a reasoned decision on the matter, but
it shall not be necessary for any such notice to set out the terms
of any resolution to be proposed or any of the provisions of this
Article 6. The notice convening any such meeting may be signed by
an appropriate officer of the Warrant Agent or of the Company or
the person designated by such Warrantholders, as the case may
be.

 

6.3

Chairman

 

The
Warrant Agent may nominate in writing an individual (who need not
be a Warrantholder) to be chairman of the meeting and if no
individual is so nominated, or if the individual so nominated is
not present within 15 minutes after the time fixed for the holding
of the meeting, the Warrantholders present in person or by proxy
shall appoint an individual present to be chairman of the meeting.
The chairman of the meeting need not be a
Warrantholder.

 

6.4

Quorum

 

Subject
to the provisions of Section 6.11, at any meeting of the
Warrantholders a quorum shall consist of two Warrantholders present
in person or represented by proxy and representing at least 20% of
the aggregate number of Warrants then outstanding. If a quorum of
the Warrantholders shall not be present within one-half hour from
the time fixed for holding any meeting, the meeting, if summoned by
the Warrantholders or on a Warrantholders' Request, shall be
dissolved; but in any other case the meeting shall be adjourned to
the same day in the next week (unless such day is not a Business
Day in which case it shall be adjourned to the next following
Business Day) at the same time and place to the extent possible
and, subject to the provisions of Section 6.11, no notice of the
adjournment need be given. Any business may be brought before or
dealt with at an adjourned meeting that might have been dealt with
at the original meeting in accordance with the notice calling the
same. At the adjourned meeting the Warrantholders present in person
or represented by proxy shall form a quorum and may transact the
business for which the meeting was originally convened,
notwithstanding that they may not represent at least 20% of the
aggregate number of Warrants then unexercised and outstanding. No
business shall be transacted at any meeting, except an adjourned
meeting as described above, unless a quorum is present at the
commencement of business.

 

6.5

Power to Adjourn

 

The
chairman of any meeting at which a quorum of the Warrantholders is
present may, with the consent of the meeting, adjourn any such
meeting, and no notice of such adjournment need be given except
such notice, if any, as the meeting may prescribe.

 

6.6

Show of Hands

 

Every
question submitted to a meeting shall be decided in the first place
by a majority of the votes given on a show of hands except that
votes on an extraordinary resolution shall be given in the manner
hereinafter provided. At any such meeting, unless a poll is duly
demanded as herein provided, a declaration by the chairman that a
resolution has been carried or carried unanimously or by a
particular majority or lost or not carried by a particular majority
shall be conclusive evidence of the fact.

 

 

 

 

6.7

Poll and Voting

 

On
every extraordinary resolution, and when demanded by the chairman
or by one or more of the Warrantholders acting in person or by
proxy on any other question submitted to a meeting and after a vote
by show of hands, a poll shall be taken in such manner as the
chairman shall direct. Questions other than those required to be
determined by extraordinary resolution shall be decided by a
majority of the votes cast on the poll. On a show of hands, every
person who is present and entitled to vote, whether as a
Warrantholder or as proxy for one or more absent Warrantholders, or
both, shall have one vote. On a poll, each Warrantholder present in
person or represented by a proxy duly appointed by instrument in
writing shall be entitled to one vote in respect of each whole
Warrant then held by her. A proxy need not be a Warrantholder. The
chairman of any meeting shall be entitled, both on a show of hands
and on a poll, to vote in respect of the Warrants, if any, held or
represented by her.

 

6.8

Regulations

 

Subject
to the provisions of this Indenture, the Warrant Agent or the
Company with the approval of the Warrant Agent may from time to
time make and from time to time vary such regulations as it shall
consider necessary or appropriate generally for the calling of
meetings of Warrantholders and the conduct of business thereat
including setting a record date for Warrantholders entitled to
receive notice of or to vote at such meeting.

 

Any
regulations so made shall be binding and effective and the votes
given in accordance therewith shall be valid and shall be counted.
Save as such regulations may provide, the only persons who shall be
recognized at any meeting as a Warrantholder, or be entitled to
vote or be present at the meeting in respect thereof (subject to
Section 6.9), shall be Warrantholders or persons holding proxies of
Warrantholders.

 

6.9

Company, Warrant Agent and Counsel may
be Represented

 

The
Company and the Warrant Agent, by their respective directors,
officers and employees and the Counsel for each of the Company, the
Warrantholders and the Warrant Agent may attend any meeting of the
Warrantholders and speak thereat but shall not be entitled to vote
unless in their capacities as Warrantholders or proxies
therefor.

 

6.10

Powers Exercisable by Extraordinary
Resolution

 

In
addition to all other powers conferred upon them by any other
provisions of this Indenture or by law, the Warrantholders at a
meeting shall have the power, exercisable from time to time by
extraordinary resolution:

 

(a)

to agree with the
Company to any modification, alteration, compromise or arrangement
of the rights of Warrantholders and/or the Warrant Agent in its
capacity as Warrant Agent hereunder (subject to the Warrant Agent's
approval) or on behalf of the Warrantholders against the Company,
whether such rights arise under this Indenture or the Warrants or
otherwise;

 

(b)

to amend, modify or
repeal any extraordinary resolution previously passed or sanctioned
by the Warrantholders;

 

(c)

to direct or
authorize the Warrant Agent (subject to the Warrant Agent receiving
funding and indemnity) to enforce any of the covenants on the part
of the Company contained in this Indenture or the Warrants or to
enforce any of the rights of the Warrantholders in any manner
specified in such extraordinary resolution or to refrain from
enforcing any such covenant or right;

 

 

 

 

(d)

to waive, authorize
and direct the Warrant Agent to waive any default on the part of
the Company in complying with any provisions of this Indenture or
the Warrants either unconditionally or upon any conditions
specified in such extraordinary resolution;

 

(e)

to restrain any
Warrantholder from taking or instituting any suit, action or
proceeding against the Company for the enforcement of any of the
covenants on the part of the Company contained in this Indenture or
the Warrants or to enforce any of the rights of the
Warrantholders;

 

(f)

to direct any
Warrantholder who, as such, has brought any suit, action or
proceeding to stay or discontinue or otherwise deal with any such
suit, action or proceeding, upon payment of the costs, charges and
expenses reasonably and properly incurred by such Warrantholder in
connection therewith;

 

(g)

to assent to any
change in or omission from the provisions contained in this
Indenture or any ancillary or supplemental instrument which may be
agreed to by the Company, and to authorize the Warrant Agent to
concur in and execute any ancillary or supplemental indenture
embodying the change or omission; and

 

(h)

with the consent of
the Company, such consent not to be unreasonably withheld, to
remove the Warrant Agent or its successor in office and to appoint
a new warrant agent or warrant agents to take the place of the
Warrant Agent so removed.

 

6.11

Meaning of "Extraordinary
Resolution"

 

(1) The expression
"extraordinary resolution"
when used in this Indenture means, subject as hereinafter in this
Section 6.11 and in Section 6.14 provided, a resolution proposed at
a meeting of Warrantholders duly convened for that purpose and held
in accordance with the provisions of this Article 6 at which there
are present in person or by proxy at least two Warrantholders
representing at least 20% of the aggregate number of all the then
outstanding Warrants and passed by the affirmative votes of
Warrantholders representing not less than 662⁄3% of the
aggregate number of all the then outstanding Warrants represented
at the meeting and voted on the poll upon such
resolution.

 

(2) If, at any meeting
called for the purpose of passing an extraordinary resolution,
Warrantholders representing at least 20% of the aggregate number of
all the then outstanding Warrants are not present in person or by
proxy within one-half hour after the time appointed for the
meeting, then the meeting, if convened by Warrantholders or on a
Warrantholders' Request, shall be dissolved; but in any other case
it shall stand adjourned to such day, being not less than 10
Business Days later, and to such place and time as may be appointed
by the chairman. Not less than three Business Days prior notice
shall be given of the time and place of such adjourned meeting in
the manner provided in Sections 9.1 and 9.2. Such notice shall
state that at the adjourned meeting the Warrantholders present in
person or represented by proxy shall form a quorum but it shall not
be necessary to set forth the purposes for which the meeting was
originally called or any other particulars. At the adjourned
meeting the Warrantholders present in person or represented by
proxy shall form a quorum and may transact the business for which
the meeting was originally convened and a resolution proposed at
such adjourned meeting and passed by the requisite vote as provided
in Section 6.11(1) shall be an extraordinary resolution within the
meaning of this Indenture notwithstanding that Warrantholders
representing at least 20% of all the then outstanding Warrants are
not present in person or represented by proxy at such adjourned
meeting.

 

(3) Votes on an
extraordinary resolution shall always be given on a poll and no
demand for a poll on an extraordinary resolution shall be
necessary.

 

6.12

Powers Cumulative

 

It is
hereby declared and agreed that any one or more of the powers or
any combination of the powers in this Indenture stated to be
exercisable by the Warrantholders by extraordinary resolution or
otherwise may be exercised from time to time and the exercise of
any one or more of such powers or any combination of powers from
time to time shall not be deemed to exhaust the right of the
Warrantholders to exercise such powers or combination of powers
then or thereafter from time to time.

 

 

 

 

6.13

Minutes

 

Minutes
of all resolutions and proceedings at every meeting of
Warrantholders as aforesaid shall be made and duly entered in books
to be provided for that purpose by the Warrant Agent at the expense
of the Company and any minutes as aforesaid, if signed by the
chairman of the meeting at which resolutions were passed or
proceedings had, or by the chairman of the next succeeding meeting
of the Warrantholders, shall be prima facie evidence of the matters
therein stated and, until the contrary is proved, every meeting, in
respect of the proceedings of which minutes shall have been made,
shall be deemed to have been duly convened and held, and all
resolutions passed thereat or proceedings taken, to have been duly
passed and taken.

 

6.14

Instruments in
Writing

 

All
actions that may be taken and all powers that may be exercised by
the Warrantholders at a meeting held as provided in this Article 6
may also be taken and exercised by Warrantholders representing a
majority, or in the case of an extraordinary resolution at least
662⁄3%, of the aggregate number of all the then outstanding
Warrants by an instrument in writing signed in one or more
counterparts by such Warrantholders in person or by attorney duly
appointed in writing, and the expression "extraordinary resolution"
when used in this Indenture shall include an instrument so
signed.

 

6.15

Binding Effect of
Resolutions

 

Every
resolution and every extraordinary resolution passed in accordance
with the provisions of this Article 6 at a meeting of
Warrantholders shall be binding upon all the Warrantholders,
whether present at or absent from such meeting, and every
instrument in writing signed by Warrantholders in accordance with
Section 6.14 shall be binding upon all the Warrantholders, whether
signatories thereto or not, and each and every Warrantholder and
the Warrant Agent (subject to the provisions for indemnity herein
contained) shall be bound to give effect accordingly to every such
resolution and instrument in writing. In the case of an instrument
in writing, the Warrant Agent shall give notice in the manner
contemplated in Sections 9.1 and 9.2 of the effect of the
instrument in writing to all Warrantholders and the Company as soon
as is reasonably practicable.

 

6.16

Holdings by the Company or
Subsidiaries of the Company Disregarded

 

In
determining whether Warrantholders are present at a meeting of
Warrantholders for the purpose of determining a quorum or have
concurred in any consent, waiver, extraordinary resolution,
Warrantholders' Request or other action under this Indenture,
Warrants owned legally or beneficially by the Company or its
Subsidiaries or in partnership of which the Company is directly or
indirectly a party to shall be disregarded.

 

6.17

Subordinate Voting Shares or Warrants
Owned by the Company or its Subsidiaries – Certificate to be
Provided

 

For the
purpose of disregarding any Warrants owned legally or beneficially
by the Company in Section 6.16, the Company shall provide to the
Warrant Agent, upon written request, a certificate of the Company
setting forth as at the date of such certificate:

 

(a)

the names (other
than the name of the Company) of the Warrantholders which, to the
knowledge of the Company, hold Warrants that are owned by or held
for the account of the Company; and

 

(b)

the number of
Warrants owned legally or beneficially by the Company,

 

and the
Warrant Agent, in making the computations in Section 6.16, shall be
entitled to rely on such certificate without any additional
evidence.

 

 

  

ARTICLE
7

SUPPLEMENTAL INDENTURES AND SUCCESSOR COMPANIES

 

7.1

Provision for Supplemental Indentures
for Certain Purposes

 

From
time to time the Company (if properly authorized by its directors)
and the Warrant Agent may, subject to the provisions hereof, and
they shall, when so directed in accordance with the provisions
hereof, execute and deliver by their proper officers, indentures or
instruments supplemental hereto, which thereafter shall form part
hereof, for any one or more or all of the following
purposes:

 

(a)

providing for the
issuance of additional Warrants hereunder including Warrants in
excess of the number set out in Section 2.1 and any consequential
amendments hereto as may be required by the Warrant Agent, relying
on the advice of Counsel;

 

(b)

setting forth
adjustments in the application of Article 2;

 

(c)

adding to the
provisions hereof such additional covenants and enforcement
provisions as, in the opinion of Counsel are necessary or
advisable, provided that the same are not in the opinion of the
Warrant Agent, relying on the advice of Counsel, prejudicial to the
interests of the Warrantholders as a group;

 

(d)

giving effect to
any extraordinary resolution passed as provided in Article
6;

 

(e)

making such
provisions not inconsistent with this Indenture as may be necessary
or desirable with respect to matters or questions arising hereunder
provided that such provisions are not, in the opinion of the
Warrant Agent, relying on the advice of Counsel, prejudicial to the
interests of the Warrantholders as a group;

 

(f)

adding to or
amending the provisions hereof in respect of the transfer of
Warrants, making provision for the exchange of Warrants and making
any modification in the form of the Warrant Certificate that does
not affect the substance thereof;

 

(g)

amending any of the
provisions of this Indenture or relieving the Company from any of
the obligations, conditions or restrictions herein contained,
provided that no such amendment or relief shall be or become
operative or effective if, in the opinion of the Warrant Agent,
relying on the advice of Counsel, such amendment or relief impairs
any of the rights of the Warrantholders as a group or of the
Warrant Agent, and provided further that the Warrant Agent may in
its sole discretion decline to enter into any supplemental
indenture that in its opinion may not afford adequate protection to
the Warrant Agent when the same shall become operative;
and

 

(h)

for any other
purpose not inconsistent with the terms of this Indenture,
including the correction or rectification of any ambiguities,
defective or inconsistent provisions, errors or omissions herein,
provided that, in the opinion of the Warrant Agent, relying on the
advice of Counsel, the rights of the Warrant Agent and the
Warrantholders as a group are in no way prejudiced
thereby.

 

7.2

Successor
Companies

 

In the
case of the amalgamation, consolidation, arrangement, merger or
transfer of the undertaking or assets of the Company as an entirety
or substantially as an entirety to or with another person (a
"successor company"), the
successor company resulting from the amalgamation, consolidation,
arrangement, merger or transfer (if not the Company) shall be bound
by the provisions hereof and all obligations for the due and
punctual performance and observance of each and every covenant and
obligation contained in this Indenture to be performed by the
Company and the successor company shall by supplemental indenture
satisfactory in form to the Warrant Agent and executed and
delivered to the Warrant Agent, expressly assume those
obligations.

 

 

 

 

ARTICLE
8

CONCERNING THE WARRANT AGENT

 

8.1

Indenture
Legislation

 

(1) If and to the
extent that any provision of this Indenture limits, qualifies or
conflicts with a mandatory requirement of Applicable Legislation,
such mandatory requirement shall prevail.

 

(2) The Company and the
Warrant Agent agree that each will at all times in relation to this
Indenture and any action to be taken hereunder observe and comply
with and be entitled to the benefit of Applicable
Legislation.

 

8.2

Rights and Duties of Warrant
Agent

 

(1) The Warrant Agent
accepts the duties and responsibilities under this Indenture,
solely as custodian, bailee and agent. No trust is intended to be,
or is or will be, created hereby and the Warrant Agent shall owe no
duties hereunder as a trustee.

 

(2) In the exercise of
the rights and duties prescribed or conferred by the terms of this
Indenture, the Warrant Agent shall act honestly and in good faith
with a view to the best interests of the Warrantholders and shall
exercise the degree of care, diligence and skill that a reasonably
prudent warrant agent would exercise in comparable circumstances.
No provision of this Indenture shall be construed to relieve the
Warrant Agent from, or require any other person to indemnify the
Warrant Agent against liability for its own gross negligence,
wilful misconduct, bad faith or fraud.

 

(3) The Warrant Agent
shall not be bound to do or take any act, action or proceeding for
the enforcement of any of the obligations of the Company under this
Indenture unless and until it shall have received a Warrantholders'
Request specifying the act, action or proceeding that the Warrant
Agent is requested to take. The obligation of the Warrant Agent to
commence or continue any act, action or proceeding for the purpose
of enforcing any rights of the Warrant Agent or the Warrantholders
hereunder shall be conditional upon the Warrantholders furnishing,
when required by notice in writing by the Warrant Agent, sufficient
funds to commence or continue such act, action or proceeding and an
indemnity reasonably satisfactory to the Warrant Agent and its
Counsel to protect and hold harmless the Warrant Agent, its
officers, directors, employees, agents, successors and assigns
against the costs, charges and expenses and liabilities to be
incurred thereby and any loss and damage it may suffer by reason
thereof. None of the provisions contained in this Indenture shall
require the Warrant Agent to expend or risk its own funds or
otherwise incur financial liability in the performance of any of
its duties or in the exercise of any of its rights or powers unless
indemnified and funded as aforesaid.

 

(4) The Warrant Agent
may, before commencing any act, action or proceeding, or at any
time during the continuance thereof require the Warrantholders at
whose instance it is acting to deposit with the Warrant Agent the
Warrants held by them, for which Warrants the Warrant Agent shall
issue receipts.

 

(5) Every provision of
this Indenture that, by its terms, relieves the Warrant Agent of
liability or entitles it to rely upon any evidence submitted to it
is subject to the provisions of Applicable
Legislation.

 

(6) The Warrant Agent
shall not be bound to give any notice or do or take any act, action
or proceeding by virtue of the powers conferred on it hereunder
unless and until it shall have been required to do so under the
terms hereof; nor shall the Warrant Agent be required to take
notice of any default hereunder, unless and until notified in
writing of such default, which notice shall specifically set out
the default desired to be brought to the attention of the Warrant
Agent and in the absence of such notice the Warrant Agent may for
all purposes of this Indenture conclusively assume that no default
has occurred or been made in the performance or observance of the
representations, warranties and covenants, agreements or conditions
herein contained. Any such notice shall in no way limit any
discretion herein given to the Warrant Agent to determine whether
or not the Warrant Agent shall take action with respect to any
default.

 

(7) In this Indenture,
whenever confirmations or instructions are required to be given to
the Warrant Agent, in order to be valid, such confirmations and
instructions shall be in writing.

 

 

 

 

8.3

Evidence, Experts and
Advisers

 

(1) In addition to the
reports, certificates, opinions and other evidence required by this
Indenture, the Company shall furnish to the Warrant Agent such
additional evidence of compliance with any provision hereof and in
such form as may be prescribed by Applicable Legislation or as the
Warrant Agent may reasonably require by written notice to the
Company.

 

(2) In the exercise of
its rights and duties hereunder, the Warrant Agent may, if it is
acting in good faith, act and rely absolutely as to the truth of
the statements and the accuracy of the opinions expressed therein,
upon statutory declarations, opinions, reports, written requests,
consents, or orders of the Company, certificates of the Company or
other evidence furnished to the Warrant Agent pursuant to any
provision hereof or of Applicable Legislation or pursuant to a
request of the Warrant Agent, provided that such evidence complies
with Applicable Legislation and that the Warrant Agent complies
with Applicable Legislation and that the Warrant Agent examines the
same and determines that such evidence complies with the applicable
requirements of this Indenture. The Warrant Agent shall be under no
responsibility in respect of the validity of this Indenture or the
execution and delivery hereof by or on behalf of the Company or in
respect of the validity or the execution of any Warrant Certificate
by the Company and issued hereunder, nor shall it be responsible
for any breach by the Company of any covenant or condition
contained in this Indenture or in any such Warrant Certificate; nor
shall it by any act hereunder be deemed to make any representation
or warranty as to the authorization or reservation of any
securities to be issued upon the right to acquire provided for in
this Indenture and/or in any Warrant or as to whether any
securities will when issued be duly authorized or be validly issued
and fully paid and non-assessable.

 

(3) Whenever provided
for in this Indenture or Applicable Legislation requires that the
Company deposit with the Warrant Agent resolutions, certificates,
reports, opinions, requests, orders or other documents, it is
intended that the truth, accuracy and good faith on the effective
date thereof and the facts and opinions stated in all such
documents so deposited shall, in each and every such case, be
conditions precedent to the right of the Company to have the
Warrant Agent take the action to be based thereon.

 

(4) Proof of the
execution of an instrument in writing, including a Warrantholders'
Request, by any Warrantholder may be made by a certificate of a
notary public or other person with similar powers that the person
signing such instrument acknowledged to him the execution thereof,
or by an affidavit of a witness to such execution or in any other
manner which the Warrant Agent may consider adequate and in respect
of a corporate Warrantholder, shall include a certificate of
incumbency of such Warrantholder together with a certified
resolution authorizing the person who signs such instrument to sign
such instrument.

 

(5) The Warrant Agent
may act and rely and shall be protected in acting and relying upon
any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, letter, or other paper
document believed by it to be genuine and to have been signed, sent
or presented by or on behalf of the proper party or parties. The
Warrant Agent has sole discretion and shall be protected in acting
and relying upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, consent, order,
letter or other paper document received in facsimile or e-mail
form.

 

(6) The Warrant Agent
may employ or retain such Counsel, accountants, engineers,
appraisers or other experts or advisers as it may reasonably
require for the purpose of determining and discharging its duties
hereunder and shall pay reasonable remuneration for all services so
performed by any of them, without taxation of costs of any Counsel
and shall not be responsible for any misconduct or negligence on
the part of any of them who has been selected with due care by the
Warrant Agent. Any reasonable remuneration paid by the Warrant
Agent shall be paid by the Company in accordance with Section
4.2.

 

(7) The Warrant Agent
may act and rely and shall be protected in acting and relying in
good faith on the opinion or advice of or information obtained from
any Counsel, accountant, appraiser, engineer or other expert or
advisor, whether retained or employed by the Company or the Warrant
Agent, in relation to any matter arising in fulfilling its duties
and obligations hereof.

 

(8) The Warrant Agent
may, as a condition precedent to any action to be taken by it under
this Indenture, require such opinions, statutory declarations,
reports, certificates or other evidence as it, acting reasonably,
considers necessary or advisable in the circumstances.

 

(9) The Warrant Agent
is not required to expend or place its own funds at risk in
executing its duties and obligations.

 

 

 

 

8.4

Securities, Documents and Monies Held
by Warrant Agent

 

(1) Any securities,
documents of title, monies or other instruments that may at any
time be held by the Warrant Agent subject to the duties and
obligations hereof, for the benefit of the Company, may be placed
in the deposit vaults of the Warrant Agent or of any Schedule 1
Canadian chartered bank under the Bank Act (Canada) or deposited for
safekeeping with any such bank or the Warrant Agent. Any monies
held pending the application or withdrawal thereof under any
provisions of this Indenture, shall be held, invested and
reinvested in "Permitted Investments" as directed in writing by the
Company. "Permitted Investments" shall be treasury bills guaranteed
by the Government of Canada having a term to maturity not to exceed
ninety (90) days, or term deposits or bankers' acceptances of a
Canadian chartered bank having a term to maturity not to exceed
ninety (90) days, or such other investments that is in accordance
with the Warrant Agent's standard type of investments. Unless
otherwise specifically provided herein, all interest or other
income received by the Warrant Agent in respect of such deposits
and investments shall belong to the Company and shall be paid to
the Company upon discharge of this Indenture.

 

(2) Any written
direction for the investment or release of funds received shall be
received by the Warrant Agent by 9:00 a.m. (Calgary time) on the
Business Day on which such investment or release is to be made,
failing which such direction will be handled on a commercially
reasonable efforts basis and may result in funds being invested or
released on the next Business Day.

 

(3) The Warrant Agent
shall have no responsibility or liability for any diminution of any
funds resulting from any investment made in accordance with this
Indenture, including any losses on any investment liquidated prior
to maturity in order to make a payment required
hereunder.

 

(4) In the event that
the Warrant Agent does not receive a direction or only a partial
direction, the Warrant Agent may hold cash balances constituting
part or all of such monies and may, but need not, invest same in
its deposit department, the deposit department of one of its
affiliates, or the deposit department of a Canadian chartered bank;
but the Warrant Agent, its affiliates or a Canadian chartered bank
shall not be liable to account for any profit to any parties to
this Indenture or to any other person or entity.

 

8.5

Actions by Warrant Agent to Protect
Interests

 

The
Warrant Agent shall have the power to institute and to maintain
such actions and proceedings as it may consider necessary or
expedient to preserve, protect or enforce its interests and the
interests of the Warrantholders pursuant to the provisions of this
Indenture.

 

8.6

Warrant Agent not Required to Give
Security

 

The
Warrant Agent shall not be required to give any bond or security in
respect of the execution of the duties and obligations of this
Indenture or otherwise.

 

8.7

Protection of Warrant
Agent

 

By way
of supplement to the provisions of any law for the time being
relating to warrant agents, it is expressly declared and agreed as
follows:

 

(1) The Warrant Agent
shall not be liable for or by reason of any representations,
statements of fact or recitals in this Indenture or in the Warrants
(except the representation contained in Section 8.9 or in the
Authentication of the Warrant Agent on the Warrants) or be required
to verify the same and all such statements of fact or recitals are
and shall be deemed to be made by the Company.

 

(2) Nothing herein
contained shall impose any obligation on the Warrant Agent to see
to or to require evidence of the registration or filing (or renewal
thereof) of this Indenture or any instrument ancillary or
supplemental hereto.

 

(3) The Warrant Agent
shall not be bound to give notice to any person or persons of the
execution hereof.

 

 

 

 

(4) The Warrant Agent
shall not incur any liability or responsibility whatsoever or be in
any way responsible for the consequence of any breach on the part
of the Company of any of the covenants or warranties herein
contained or of any acts of any directors, officers, employees,
agents or servants of the Company.

 

(5) Without limiting
any protection or indemnity of the Warrant Agent under any other
provision hereof, or otherwise at law, the Company hereby agrees to
indemnify and hold harmless the Warrant Agent and its affiliates,
directors, officers, agents and employees, successors and assigns
(the "Indemnified
Parties") from and against
any and all liabilities whatsoever, losses, damages, penalties,
claims, demands, proceedings, charges, actions, suits, costs,
expenses and disbursements, including reasonable legal or advisor
fees and disbursements on a solicitor and client basis, of whatever
kind and nature which may at any time be imposed on, incurred by or
asserted against the Indemnified Parties, or any of them, whether
at law or in equity, in any way caused by or arising from the
performance of its duties hereunder, directly or indirectly, in
respect of any act, deed, matter or thing whatsoever made, done,
acquiesced in or omitted in or about or in relation to the
execution of the Indemnified Parties' duties, or any other services
that Warrant Agent may provide in connection with or in any way
relating to this Indenture. The Company agrees that its liability
hereunder shall be absolute and unconditional regardless of the
correctness of any representations of any third parties and
regardless of any liability of third parties to the Indemnified
Parties, and shall accrue and become enforceable without prior
demand or any other precedent action or proceeding; provided that
the Company shall not be required to indemnify the Indemnified
Parties in the event of the gross negligence, fraud or wilful
misconduct of the Warrant Agent, and this provision shall survive
the resignation or removal of the Warrant Agent or the termination
or discharge of this Indenture.

 

(6) Notwithstanding the
foregoing or any other provision of this Indenture, any liability
of the Warrant Agent shall be limited, in the aggregate, to the
amount of annual retainer fees paid by the Company to the Warrant
Agent under this Indenture in the twelve (12) months immediately
prior to the Warrant Agent receiving the first notice of the claim;
provided that this limitation shall not apply in respect of any
gross negligence, fraud or wilful misconduct of the Warrant Agent.
Notwithstanding any other provision of this Indenture, and whether
such losses or damages are foreseeable or unforeseeable, the
Warrant Agent shall not be liable under any circumstances
whatsoever for any (a) breach by any other party of securities law
or other rule of any securities regulatory authority, (b) lost
profits or (c) special, indirect, incidental, consequential,
exemplary, aggravated or punitive losses or damages.

 

(7) If any of the funds
provided to the Warrant Agent hereunder are received by it in the
form of an uncertified cheque or bank draft, the Warrant Agent
shall delay the release of such funds and the related Warrant
Shares until such uncertified cheque has cleared the financial
institution upon which the same is drawn.

 

(8) The forwarding of a
cheque or the sending of funds by wire transfer by the Warrant
Agent will satisfy and discharge the liability of any amounts due
to the extent of the sum represented thereby unless such cheque is
not honoured on presentation, provided that in the event of the
non-receipt of such cheque by the payee, or the loss or destruction
thereof, the Warrant Agent, upon being furnished with reasonable
evidence of such non-receipt, loss or destruction and indemnity
reasonably satisfactory to it, will issue to such payee a
replacement cheque for the amount of such cheque.

 

(9) The Warrant Agent
shall retain the right not to act and shall not be liable for
refusing to act if, due to a lack of information or for any other
reason whatsoever, the Warrant Agent, in its sole judgement,
determines that such act might cause it to be in non-compliance
with any applicable anti-money laundering, anti-terrorist or
economic sanctions legislation, regulation or guideline. Further,
should the Warrant Agent, in its sole judgement, determine at any
time that its acting under this Indenture has resulted in its being
in non-compliance with any applicable anti-money laundering,
anti-terrorist or economic sanctions legislation, regulation or
guideline, then it shall have the right to resign on 10 days'
written notice to the Company provided: (i) that the Warrant
Agent's written notice shall describe the circumstances of such
non-compliance; and (ii) that if such circumstances are rectified
to the Warrant Agent's satisfaction within such 10-day period, then
such resignation shall not be effective.

 

8.8

Replacement of Warrant
Agent

 

(1) The Warrant Agent
may resign its appointment and be discharged from all further
duties and liabilities hereunder by giving to the Company not less
than 60 days prior notice in writing or such shorter prior notice
as the Company may accept as sufficient. The Warrantholders by
extraordinary resolution shall have the power at any time to remove
the existing Warrant Agent and to appoint a new warrant agent. In
the event of the Warrant Agent resigning or being removed as
aforesaid or being dissolved, becoming bankrupt, going into
liquidation or otherwise becoming incapable of acting hereunder,
the Company shall forthwith appoint a new warrant agent unless a
new warrant agent has already been appointed by the Warrantholders;
failing such appointment by the Company, the retiring Warrant Agent
or any Warrantholder may apply to a justice of the Ontario Superior
Court of Justice (the "Court") at the Company's expense, on
such notice as such justice may direct, for the appointment of a
new warrant agent; but any new warrant agent so appointed by the
Company or by the Court shall be subject to removal as aforesaid by
the Warrantholders. Any new warrant agent appointed under any
provision of this Section 8.8 shall be a corporation authorized to
carry on the business of a transfer agent or a trust company in one
or more provinces of Canada and, if required by Applicable
Legislation of any province, in such province. On any such
appointment the new warrant agent shall be vested with the same
powers, rights, duties and responsibilities as if it had been
originally named herein as Warrant Agent without any further
assurance, conveyance, act or deed; but there shall be immediately
executed, at the expense of the Company, all such conveyances or
other instruments as may, in the opinion of Counsel, be necessary
or advisable for the purpose of assuring the same to the new
warrant agent, provided that any resignation or removal of the
Warrant Agent and appointment of a successor warrant agent shall
not become effective until the successor warrant agent shall have
executed an appropriate instrument accepting such appointment and,
at the request of the Company, the predecessor Warrant Agent, upon
payment of its outstanding remuneration and expenses, shall execute
and deliver to the successor warrant agent an appropriate
instrument transferring to such successor warrant agent all rights
and powers of the Warrant Agent hereunder and all securities,
documents of title and other instruments and all monies and
properties held by the Warrant Agent hereunder.

 

 

 

 

(2) Upon the
appointment of a successor warrant agent, the Company shall
promptly notify the Warrantholders thereof in the manner provided
for in Section 9.2.

 

(3) Any corporation
into or with which the Warrant Agent may be merged or consolidated
or amalgamated, or any corporation succeeding to the corporate
trust business of the Warrant Agent, shall be the successor to the
Warrant Agent hereunder without any further act on its part or of
any of the parties hereto, provided that such corporation would be
eligible for appointment as a new warrant agent under Section
8.8(1).

 

(4) Any Warrants
Authenticated or certified but not delivered by a predecessor
Warrant Agent may be Authenticated or certified by the new or
successor warrant agent in the name of the predecessor or the new
or successor warrant agent.

 

8.9

Conflict of
Interest

 

(1) The Warrant Agent
represents to the Company, to the best of its knowledge, that at
the time of execution and delivery hereof no material conflict of
interest exists which it is aware of in the Warrant Agent's role
hereunder and agrees that in the event of a material conflict of
interest arising which it becomes aware of hereafter it will,
within 90 days after ascertaining that it has such a material
conflict of interest, either eliminate the same or resign its
appointment hereunder. If any such material conflict of interest
exists or hereafter shall exist, the validity and enforceability of
this Indenture and the Warrants shall not be affected in any manner
whatsoever by reason thereof.

 

(2) Subject to Section
8.9(1), the Warrant Agent, in its personal or any other capacity,
may buy, lend upon and deal in securities of the Company and
generally may contract and enter into financial transactions with
the Company or any Subsidiary without being liable to account for
any profit made thereby.

 

8.10

Acceptance of Duties and
Obligations

 

The
Warrant Agent hereby accepts the duties and obligations in this
Indenture declared and provided for and agrees to perform the same
upon the terms and conditions herein set forth and agrees to hold
all rights, interests and benefits contained herein on behalf of
those persons who become holders of Warrants from time to time
issued under this Indenture.

 

8.11

Warrant Agent not to be Appointed
Receiver

 

The
Warrant Agent and any person related to the Warrant Agent shall not
be appointed a receiver or receiver and manager or liquidator of
all or any part of the assets or undertaking of the Company or any
Subsidiary or any partnership of which the Company is directly or
indirectly involved.

 

8.12

Authorization to Carry on
Business

 

The
Warrant Agent represents to the Company that it is registered to
carry on business under Applicable Legislation in the provinces of
Alberta and British Columbia.

 

 

 

 

ARTICLE
9

GENERAL

 

9.1

Notice to the Company and the Warrant
Agent

 

(1) Unless herein
otherwise expressly provided, any notice to be given hereunder to
the Company or the Warrant Agent shall be deemed to be validly
given if delivered, if sent by registered letter, postage prepaid,
or if sent by electronic transmission to the following
addresses:

 

(a)

If to the Company,
to:

 

Indus
Holdings, Inc.

19
Quail Run Circle - Suite B

Salinas,
California

93907

 

Attention:                       

Brian Shure, Chief
Financial Officer

Email:                                 

[Redacted – E-Mail
Address]

 

 

with a
copy to:

 

Cassels
Brock & Blackwell LLP

Suite
2100, Scotia Plaza

40 King
Street West

Toronto,
Ontario

M5H
3C2

 

Attention:                       

Jay
Goldman

Email:                                 

[Redacted – E-Mail
Address]

 

 

 

 

(b)

If to the Warrant
Agent, to:

 

Odyssey
Trust Company

Suite
1230, 300 5th Avenue
SW

Calgary,
Alberta

T2P
3C4

 

Attention:                       

Corporate
Trust

Email:                       

corptrust@odysseytrust.com

 

and any
notice given in accordance with the foregoing shall be deemed to
have been received on the date of delivery if that date is a
Business Day (and if that date is not a Business Day, on the next
Business Day) or, if mailed, on the fifth Business Day following
the date of the postmark on such notice or, if transmitted by
email, on the Business Day following the transmission.

 

(2) The Company or the
Warrant Agent, as the case may be, may from time to time notify the
other in the manner provided in Section 9.1(1) of a change of
address which, from the effective date of such notice and until
changed by like notice, shall be the address of the Company or the
Warrant Agent, as the case may be, for all purposes of this
Indenture.

 

(3) If, by reason of a
strike, lockout or other work stoppage, actual or threatened,
involving postal employees, any notice to be given to the Warrant
Agent or to the Company hereunder could reasonably be considered
unlikely to reach its destination, the notice shall be valid and
effective only if it is delivered to an officer of the party to
which it is addressed or if it is delivered to that party at the
appropriate address provided in Section 9.1(1) by means of prepaid,
transmitted or recorded communication and any notice delivered in
accordance with the foregoing shall be deemed to have been received
on the date of delivery to the officer or if delivered by other
means of prepaid, transmitted, recorded communication on the third
Business Day following the date of the sending of the notice by the
person giving the notice.

 

9.2

Notice to the
Warrantholders

 

(1) Any notice to the
Warrantholders under the provisions of this Indenture shall be
deemed to be validly given if the notice is sent by prepaid mail
or, if delivered by hand, to the holders at their addresses
appearing in the register of holders. Any notice so delivered shall
be deemed to have been received on the date of delivery if that
date is a Business Day or the Business Day following the date of
delivery if such date is not a Business Day or on the third
Business Day if delivered by mail. In
the event that Warrants are held in the name of CDS, a copy of such
notice shall also be sent by electronic communication to CDS and
shall be deemed received and given on the day it is so sent.
All notices may be given to whichever one of the Warrantholders (if
more than one) is named first in the appropriate register
hereinbefore mentioned, and any notice so given shall be sufficient
notice to all Warrantholders and any other persons (if any)
interested in such Warrants. Accidental error or omission in giving
notice or accidental failure to mail notice to any Warrantholder
will not invalidate any action or proceeding founded
thereon.

 

(2) If, by reason of
strike, lockout or other work stoppage, actual or threatened,
involving postal employees, any notice to be given to the
Warrantholders could reasonably be considered unlikely to reach its
destination, the notice may be given in a news release disseminated
through a newswire service, filed on SEDAR and posted on the
Company's website; provided that in the case of a notice convening
a meeting of the holders of Warrants, the Warrant Agent may require
such additional publications of that notice, in Toronto, Ontario or
in other cities or both, as it may deem necessary for the
reasonable notification of the holders of Warrants or to comply
with any applicable requirement of law or any stock exchange. Any
notice so given shall be deemed to have been given on the day on
which it has been published in all of the cities in which
publication was required.

 

 

 

 

9.3

Privacy

 

The
Company acknowledges that the Warrant Agent may, in the course of
providing services hereunder, collect or receive financial and
other personal information about such parties and/or their
representatives, as individuals, or about other individuals related
to the subject matter hereof, and use such information for the
following purposes:

 

(a)

to provide the
services required under this Indenture and other services that may
be requested from time to time;

 

(b)

to help the Warrant
Agent manage its servicing relationships with such
individuals;

 

(c)

to meet the Warrant
Agent's legal and regulatory requirements; and

 

(d)

if Social Insurance
Numbers are collected by the Warrant Agent, to perform tax
reporting and to assist in verification of an individual's identity
for security purposes.

 

The
Company acknowledges and agrees that the Warrant Agent may receive,
collect, use and disclose personal information provided to it or
acquired by it in the course of its acting as agent hereunder for
the purposes described above and, generally, in the manner and on
the terms described in its privacy code, which the Warrant Agent
shall make available on its website or upon request, including
revisions thereto. Some of this personal information may be
transferred to servicers in the United States for data processing
and/or storage. Further, the Company agrees that it shall not
provide or cause to be provided to the Warrant Agent any personal
information relating to an individual who is not a party to this
Indenture unless the Company has assured itself that such
individual understands and has consented to the aforementioned uses
and disclosures.

 

9.4

Third Party
Interests

 

The
Company represents to the Warrant Agent that any account to be
opened by, or interest to held by the Warrant Agent in connection
with this Indenture, for or to the credit of such party, either (i)
is not intended to be used by or on behalf of any third party; or
(ii) is intended to be used by or on behalf of a third party, in
which case such party hereto agrees to complete and execute
forthwith a declaration in the Warrant Agent prescribed form as to
the particulars of such third party.

 

9.5

Securities and Exchange Commission
Certification

 

The
Company confirms that as at the date of this Indenture it does not
have a class of securities registered pursuant to section 12 of the
U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") or have a reporting
obligation pursuant to section 15(d) of the Exchange
Act.

 

The
Company covenants that in the event that (i) any class of its
securities shall become registered pursuant to section 12 of the
Exchange Act or the Company shall incur a reporting obligation
pursuant to section 15(d) of the Exchange Act, or (ii) any such
registration or reporting obligation shall be terminated by the
Company in accordance with the Exchange Act, the Company shall
promptly deliver to the Warrant Agent an Officer's Certificate (in
a form provided by the Warrant Agent) notifying the Warrant Agent
of such registration or termination and such other information as
the Warrant Agent may reasonably require at the time. The Company
acknowledges that the Warrant Agent is relying upon the foregoing
representation and covenants in order to meet certain United States
Securities and Exchange Commission ("SEC") obligations with respect to those
clients who are filing with the SEC.

 

 

 

 

9.6

Discretion of
Directors

 

Any
matter provided herein to be determined by the directors in their
sole discretion and determination so made will be
conclusive.

 

9.7

Satisfaction and Discharge of
Indenture

 

Upon
the earlier of the Time of Expiry or the date by which there shall
have been delivered to the Warrant Agent for exercise or
destruction in accordance with the provisions hereof all Warrants
theretofore Authenticated or certified hereunder and by which no
Warrants shall remain issuable hereunder, this Indenture, except to
the extent that Warrant Shares and any certificates therefor have
not been issued and delivered hereunder or the Company has not
performed any of its obligations hereunder, shall cease to be of
further effect in respect of the Company, and the Warrant Agent, on
written demand of and at the cost and expense of the Company, and
upon delivery to the Warrant Agent of a certificate of the Company
stating that all conditions precedent to the satisfaction and
discharge of this Indenture have been complied with and upon
payment to the Warrant Agent of the expenses, fees and other
remuneration payable to the Warrant Agent, shall execute proper
instruments acknowledging satisfaction of and discharging this
Indenture; provided that if the Warrant Agent has not then
performed any of its obligations hereunder any such satisfaction
and discharge of the Company's obligations hereunder shall not
affect or diminish the rights of any Warrantholder or the Company
against the Warrant Agent.

 

9.8

Provisions of Indenture and Warrants
for the Sole Benefit of Parties and
Warrantholders

 

Nothing
in this Indenture or the Warrant Certificates, expressed or
implied, shall give or be construed to give to any person other
than the parties hereto and the holders from time to time of the
Warrants any legal or equitable right, remedy or claim under this
Indenture, or under any covenant or provision therein contained,
all such covenants and provisions being for the sole benefit of the
parties hereto and the Warrantholders.

 

9.9

Indenture to
Prevail

 

To the
extent of any discrepancy or inconsistency between the terms and
conditions of this Indenture and the Warrant Certificate, the terms
of this Indenture will prevail.

 

9.10

Assignment

 

Neither
this Indenture nor any benefits or burdens under this Indenture
shall be assignable by the Company or the Warrant Agent without the
prior written consent of the other party, such consent not to be
unreasonably withheld. Subject to the foregoing, this Indenture
shall enure to the benefit of and be binding upon the Company and
the Warrant Agent and their respective successors (including any
successor by reason of amalgamation) and permitted
assigns.

 

9.11

Severability

 

If, in
any jurisdiction, any provision of this Indenture or its
application to any party or circumstance is restricted, prohibited
or unenforceable, such provision will, as to such jurisdiction, be
ineffective only to the extent of such restriction, prohibition or
unenforceability without invalidating the remaining provisions of
this Indenture and without affecting the validity or enforceability
of such provision in any other jurisdiction or without affecting
its application to other parties or circumstances.

 

 

 

 

9.12

Force Majeure

 

No
party shall be liable to the other, or held in breach of this
Indenture, if prevented, hindered, or delayed in the performance or
observance of any provision contained herein by reason of act of
God, riots, terrorism, acts of war, epidemics, governmental action
or judicial order, earthquakes, or any other similar causes
(including, but not limited to, mechanical, electronic or
communication interruptions, disruptions or failures). Performance
times under this Indenture shall be extended for a period of time
equivalent to the time lost because of any delay that is excusable
under this Section.

 

9.13

Counterparts and Formal
Date

 

This
Indenture may be simultaneously executed in several counterparts,
each of which when so executed shall be deemed to be an original
and such counterparts together shall constitute one and the same
instrument and notwithstanding their date of execution shall be
deemed to bear the date set out at the top of the first page of
this Indenture.

 

(Signature page follows)

 

 

 

 

IN WITNESS WHEREOF the parties hereto
have executed this Indenture under the hands of their proper
officers in that behalf.

 

 

	
INDUS
HOLDINGS, INC.  
 

 

	

 

 

	

 

	

By:

 

	

(signed) “Brian Shure”

	
 

	

Brian
Shure

Chief
Financial Officer

 

 

	

ODYSSEY
TRUST COMPANY

	

 

 

	

 

 

	

By:

 

	

(signed) “Dan Sander”

 

	
 

	

Dan
Sander

VP,
Corporate Trust

 

 

 

 

	

By:

 

	

(signed) “Amy Douglas”

 

	
 

	

Amy
Douglas

Director,
Corporate Trust

 

 

 

 

SCHEDULE "A"

 

FORM OF WARRANT CERTIFICATE

 

WARRANTS TO PURCHASE SUBORDINATE VOTING SHARES

OF INDUS HOLDINGS, INC.

 

(a
company existing pursuant to the laws of British
Columbia)

 

[Certificates representing Warrants required to bear the legend set
forth in Section 2.20(2) of the Warrant Indenture shall include the
following legend:

 

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON
EXERCISE HEREOF HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S.
SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES
FOR THE BENEFIT OF INDUS HOLDINGS, INC. (THE "CORPORATION") THAT
SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE
UNITED STATES IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE
U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS
AND REGULATIONS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM
REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY (1) RULE 144
THEREUNDER, IF AVAILABLE, OR (2) RULE 144A THEREUNDER, IF
AVAILABLE, AND, IN BOTH CASES, IN COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS, (D) IN ANOTHER TRANSACTION THAT DOES NOT REQUIRE
REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE
SECURITIES LAWS, OR (E) PURSUANT TO A REGISTRATION STATEMENT THAT
HAS BEEN DECLARED EFFECTIVE UNDER THE U.S. SECURITIES ACT, AND, IN
THE CASE OF (C)(1) AND (D) ABOVE, AFTER THE SELLER FURNISHES TO THE
CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM
AND SUBSTANCE REASONABLY SATISFACTORY TO THE CORPORATION TO SUCH
EFFECT. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY
REGULATION S UNDER THE U.S. SECURITIES ACT." DELIVERY OF THIS
CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF
TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

 

THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE
NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE "U.S. SECURITIES ACT") OR THE SECURITIES LAWS OF
ANY STATE OF THE UNITED STATES. THIS WARRANT MAY NOT BE EXERCISED
IN THE UNITED STATES OR BY OR ON BEHALF OF A U.S. PERSON OR PERSON
IN THE UNITED STATES UNLESS THIS WARRANT AND SHARES ISSUABLE UPON
EXERCISE OF THIS WARRANT HAVE BEEN REGISTERED UNDER THE U.S.
SECURITIES ACT AND THE APPLICABLE SECURITIES LEGISLATION OF ANY
SUCH STATE OR EXEMPTIONS FROM SUCH REGISTRATION REQUIREMENTS ARE
AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY
REGULATION S UNDER THE U.S. SECURITIES ACT.]

 

CUSIP
No. 45580N110

ISIN
No. CA45580N1107

 

	

Warrant
Certificate Number: ●

	

Representing
● Warrants to purchase Subordinate Voting Shares

 

THIS CERTIFIES that, for value received,
the registered holder hereof, ● (the "holder") is entitled at any time at or
before the Expiry Time (as defined below) to acquire, subject to
adjustment in certain events, the number of Subordinate Voting
Shares ("Subordinate Voting
Shares") of Indus Holdings, Inc. (the "Company") specified above, as presently
constituted, by surrendering to Odyssey Trust Company (the
"Warrant Agent") at its
principal office in Calgary, Alberta, this Warrant Certificate with
the duly completed and executed Exercise Form endorsed on the back
of this Warrant Certificate, and accompanied by payment of $2.20
per Subordinate Voting Share (the "Warrant Exercise Price") by certified
cheque, bank draft or money order in lawful money of Canada payable
to, or to the order of, the Company at par at the above-mentioned
office of the Warrant Agent. The holder of this Warrant Certificate
may purchase less than the number of Subordinate Voting Shares
which he is entitled to purchase on the exercise of the Warrants
represented by this Warrant Certificate, in which event a new
Warrant Certificate representing the Warrants not then exercised
will be issued to the holder.

 

 

 

 

The
Warrants evidenced under this Warrant Certificate are exercisable
on or before 5:00 p.m. (Toronto time) on December 21, 2023 (the
"Expiry Time"). After the
Expiry Time, Warrants evidenced hereby shall be deemed to be void
and of no further force or effect.

 

This
Warrant Certificate represents Warrants of the Company issued or
issuable under the provisions of a warrant indenture (which
indenture together with all other instruments supplemental or
ancillary thereto is herein referred to as the "Warrant Indenture") dated as of December
21, 2020, between the Company and the Warrant Agent, as may be
amended from time to time, which contains particulars of the rights
of the holders of the Warrants and the Company and of the Warrant
Agent in respect thereof and the terms and conditions upon which
the Warrants are issued and held, all to the same effect as if the
provisions of the Warrant Indenture were herein set forth, to all
of which the holder of this Warrant Certificate by acceptance
hereof assents. Unless otherwise defined herein, all capitalized
terms shall have the meanings ascribed to them in the Warrant
Indenture. A copy of the Warrant Indenture can be requested by
contacting the Warrant Agent. In
the event of any conflict between the provisions contained in this
Warrant Certificate and the provisions of the Warrant Indenture,
the provisions of the Warrant Indenture shall
prevail.

 

Upon
acceptance hereof, the holder hereof hereby expressly waives the
right to receive any fractional Subordinate Voting Shares upon the
exercise hereof in full or in part and further waives the right to
receive any cash or other consideration in lieu thereof. The
Warrants represented by this Warrant Certificate shall be deemed to
have been surrendered, and payment by certified cheque, bank draft
or money order shall be deemed to have been made only upon personal
delivery thereof or, if sent by post or other means of
transmission, upon actual receipt thereof by the Warrant Agent at
its office in the City of Calgary, Alberta.

 

Upon
due exercise of the Warrants represented by this Warrant
Certificate and payment of the Warrant Exercise Price, the Company
shall cause to be issued to the person(s) in whose name(s) the
Subordinate Voting Shares have been so subscribed for, the number
of Subordinate Voting Shares to be issued to such person(s)
(provided that if the Subordinate Voting Shares are to be issued to
a person other than the registered holder of this Warrant
Certificate, the holder's signature on the Exercise Form herein
shall be guaranteed by a Schedule I Canadian chartered bank or by a
medallion signature guarantee from a member of a recognized
Signature Medallion Guarantee Program), and the holder shall pay to
the Company or the Warrant Agent all applicable transfer or similar
taxes and the Company shall not be required to issue or deliver
certificates evidencing the Subordinate Voting Shares unless or
until the holder shall have paid the Company or the Warrant Agent
the amount of such tax (or shall have satisfied the Company that
such tax has been paid or that no tax is due), and such person(s)
shall become a holder in respect of such Subordinate Voting Shares
with effect from the date of such exercise, and upon due surrender
of this Warrant Certificate, the Transfer Agent shall issue a
certificate(s) representing such Subordinate Voting Shares to be
issued within five Business Days after the exercise of the Warrants
(or portion thereof) represented hereby.

 

Neither
the Warrants represented by this Warrant Certificate nor the
Subordinate Voting Shares issuable upon exercise hereof have been
or will be registered under the U.S. Securities Act or any state
securities laws. The Warrants represented by this Warrant
Certificate may not be exercised within the United States or by, or
for the account or benefit of, a U.S. Person (as defined by
Regulation S under the U.S. Securities Act) or a person within the
United States unless registered under
the U.S. Securities Act and any applicable state securities laws or
unless an exemption from such registration is
available and
the Company, the Warrant Agent and the Company's transfer agent
have received an opinion of Counsel of recognized standing or other
evidence to such effect in form and substance reasonably
satisfactory to the Company; provided, however, that a
holder who is an Accredited Investor at the time of exercise of the
Warrants and who purchased Units in a
transaction exempt from registration under the U.S. Securities Act
and applicable state securities laws as either a Qualified
Institutional Buyer or an Accredited Investor will not be required
to deliver an opinion of Counsel or such other evidence in
connection with the exercise of Warrants that are part of those
Units.

 

The
holder acknowledges that the Warrants represented by this Warrant
Certificate and the Subordinate Voting Shares issuable upon
exercise hereof may be offered, sold or otherwise transferred only
in compliance with all applicable securities laws.

 

No
transfer of any Warrant will be valid unless entered on the
register of transfers, upon surrender to the Warrant Agent of the
Warrant Certificate evidencing such Warrant, duly endorsed by, or
accompanied by a transfer form or other written instrument of
transfer in form satisfactory to the Warrant Agent executed by the
registered holder or his executors, administrators or other legal
representatives or his or their attorney duly appointed by an
instrument in writing in form and execution satisfactory to the
Warrant Agent. Subject to the provisions of the Warrant Indenture
and upon compliance with the reasonable requirements of the Warrant
Agent, Warrant Certificates may be exchanged for Warrants
Certificates entitling the holder thereof to acquire an equal
aggregate number of Subordinate Voting Shares subject to adjustment
as provided for in the Warrant Indenture. The Company and the
Warrant Agent may treat the registered holder of this Warrant
Certificate for all purposes as the absolute owner hereof. The
holding of the Warrants represented by this Warrant Certificate
shall not constitute the holder hereof a holder of Subordinate
Voting Shares nor entitle him to any right or interest in respect
thereof except as herein and in the Warrant Indenture expressly
provided.

 

The
Warrant Indenture provides for adjustment in the number of
Subordinate Voting Shares to be delivered upon exercise of the
right of purchase hereby granted and to the Warrant Exercise Price
in certain events therein set forth.

 

 

 

 

The
Warrant Indenture contains provisions making binding upon all
holders of Warrants outstanding thereunder resolutions passed at
meetings of such holders held in accordance with such provisions
and instruments in writing signed by the Warrantholders entitled to
acquire upon the exercise of the Warrants a specified percentage of
the Subordinate Voting Shares.

 

The
Warrants and the Warrant Indenture shall be governed by and
performed, construed and enforced in accordance with the laws of
the Province of Ontario and the federal laws of Canada applicable
therein and shall be treated in all respects as Ontario contracts.
Time shall be of the essence hereof and of the Warrant
Indenture.

 

The
Company may from time to time at any time prior to the Expiry Time
purchase any of the Warrants by private agreement or
otherwise.

 

This
Warrant Certificate shall not be valid for any purpose until it has
been certified by or on behalf of the Warrant Agent for the time
being under the Warrant Indenture.

 

All
dollar amounts herein are expressed in the lawful money of
Canada.

 

(Signature page follows)

 

 

 

 

 

IN WITNESS WHEREOF the Company has
caused this Warrant Certificate to be signed by its duly authorized
officer as of this            day
of                                ,
20     .

 

 

	

INDUS HOLDINGS, INC.

 

	

By:_____________________________

	

      Authorized Signing
Officer

 

	

Countersigned
this
           day
of                                ,
20     
    

 

	

 

ODYSSEY TRUST COMPANY

 

	

By:_____________________________

	

      Authorized Signing
Officer

 

 

 

 

 

 

EXERCISE FORM

 

TO:   

INDUS HOLDINGS,
INC.

c/o
Odyssey Trust Company

Suite
1230, 300 5th Avenue
SW

Calgary,
Alberta

T2P
3C4

 

The
undersigned holder of the within Warrants hereby irrevocably
exercises the right of such holder to be issued and hereby
subscribes for  
          Subordinate Voting Shares
of Indus Holdings, Inc. (the "Company") at the Warrant Exercise Price
referred to in the attached Warrant Certificate on the terms and
conditions set forth in such certificate and the Warrant Indenture
and encloses herewith a certified cheque, bank draft or money order
payable at par in the City of Calgary, in the Province of Alberta
to the order of the Company in payment in full of the subscription
price of the Subordinate Voting Shares hereby subscribed
for.

 

Unless
otherwise defined herein, all capitalized terms shall have the
meanings ascribed to them in the warrant indenture between the
Company and Odyssey Trust Company dated December 21,
2020.

 

(Please
check the ONE box
applicable):

 

☐ 1.      

The
undersigned certifies that it (i) is not in the United States and
is not a "U.S. Person", within the meaning of Regulation S under
the United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), (ii)
is not exercising this Warrant for the account or benefit of any
U.S. Person or person in the United States, (iii) did not execute
or deliver this Exercise Form within the United States and (iv) has
in all other aspects complied with the terms of Regulation S under
the U.S. Securities Act.

 

☐ 2.      

The
undersigned certifies that (i) it is the original U.S. Purchaser,
(ii) it purchased the Warrant directly from the Company pursuant to
a duly executed qualified institutional buyer letter ("QIB Letter") for the purchase of
Warrants; (iii) it is exercising the Warrant solely for its own
account or for the account of the original beneficial purchaser, if
any; (iv) each of it and any beneficial purchaser was on the date
the Warrants were purchased from the Company, and is on the date of
exercise of the Warrant, a "qualified institutional buyer" as
defined under Rule 144A under the U.S. Securities Act; and (v) all
the representations, warranties and covenants set forth in the QIB
Letter (including any required certifications set forth therein)
made by the undersigned for the purchase of Warrants from the
Company continue to be true and correct as if duly executed as of
the date hereof.

 

☐ 3.      

The
undersigned is delivering a written opinion of United States legal
counsel or evidence satisfactory to the Company to the effect that
the Warrant and the Subordinate Voting Shares to be delivered upon
exercise hereof have been registered under the U.S. Securities Act
or are exempt from the registration requirements of the U.S.
Securities Act and applicable state securities laws provided,
however, that a holder who is an Accredited Investor at the time of
exercise of the Warrants and who purchased Units in a
transaction exempt from registration under the U.S. Securities Act
and applicable state securities laws as either a Qualified
Institutional Buyer or an Accredited Investor will not be required
to deliver an opinion of counsel or such other evidence in
connection with the exercise of Warrants that are part of those
Units.

 

It is
understood that the Company may require evidence to verify the
foregoing representations.

 

 

 

 

The
undersigned hereby directs that the said Subordinate Voting Shares
be issued as follows:

 

	

NAME(S)
IN FULL

	

ADDRESS(ES)

	

NUMBER
OFSUBORDINATE VOTING SHARES

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

Please
print full name in which certificates representing the Subordinate
Voting Shares are to be issued. If any Subordinate Voting Shares
are to be issued to a person or persons other than the registered
holder, the registered holder must pay to the Warrant Agent all
eligible transfer taxes or other government charges, if any, and
the Transfer Form must be duly executed.

 

Once
completed and executed, this Exercise Form must be mailed or
delivered to Odyssey Trust Company, c/o Corporate
Trust.

 

 

DATED this               
day of                         ,
             .

 

	
 

	

)

)

)

)

)

)

)

	
 

	
 

	
 

	

Witness

 

	

 (Signature
of Warrantholder, to be the same as

appears
on the face of this Warrant Certificate)

 

	
 

	
 

	
 

	

 Name
of Registered Warrantholder

 

 

[
]                       

Please check this
box if the securities are to be delivered at the office where these
Warrants are surrendered, failing which the securities will be
mailed.

 

NOTES:

 

1. 

Certificates will
not be registered or delivered to an address in the United States
unless Box 2 or Box 3 above is checked.

 

2. 

If Box 3 above is
checked, holders are encouraged to contact the Company in advance
to determine that the legal opinion or evidence tendered in
connection with exercise will be satisfactory in form and substance
to the Company.

 

 

 

 

 

TRANSFER FORM

 

TO:         

INDUS HOLDINGS,
INC.

c/o
Odyssey Trust Company

Suite
1230, 300 5th Avenue
SW

Calgary,
Alberta

T2P
3C4

 

 

FOR VALUE RECEIVED, the undersigned transferor hereby sells,
assigns and transfers unto

	
 

	

(Transferee)

	
 

	

(Address)

	
 

	

(Social
Insurance Number)

 

___________________ of the Warrants registered in the name
of the undersigned transferor represented by the Warrant
Certificate.

 

THE UNDERSIGNED TRANSFEROR HEREBY CERTIFIES AND DECLARES
that the Warrants are not being offered, sold or transferred to, or
for the account or benefit of, a U.S. Person (as defined in
Regulation S under the U.S. Securities Act of 1933, as amended) or
a person within the United States unless registered under the U.S. Securities Act
and any applicable state securities laws or in compliance with an
exemption from registration under the U.S. Securities Act and any
applicable state securities law.

 

DATED this                   
day of                         
,             .

 

 

	

SPACE FOR GUARANTEES OF SIGNATURES (BELOW)

 

	

)

)

)

)

 

	

 

 

__________________________________

Signature
of Transferor

 

	

_________________________________

Guarantor's
Signature/Stamp

 

	

)

)

)

	

__________________________________

Name of
Transferor

 

 

 

 

 

REASON FOR TRANSFER – For US Residents only (where the
individual(s) or corporation receiving the securities is a US
resident). Please select only one (see instructions
below).

 

☐ Gift   ☐ Estate    ☐
Private Sale    ☐ Other (or no change in
ownership)

 

	
Date
of Event (Date of gift, death or
sale): 

	
Value
per Warrant on the date of event: 

	
 

	
    
☐ CAD OR ☐ USD

NOTES:

 

1. 

The signature to
this transfer must correspond with the name as recorded on the
Warrants in every particular without alteration or enlargement or
any change whatever. The signature of the person executing this
transfer must be guaranteed by a Schedule I Canadian chartered
bank, or by a medallion signature guarantee from a member of a
recognized Signature Medallion Guarantee Program.

 

2. 

Warrants shall only
be transferable in accordance with the warrant indenture between
Indus Holdings, Inc (the "Company"). and Odyssey Trust Company
dated December 21, 2020 (the "Warrant Indenture"), applicable laws and
the rules and policies of any applicable stock exchange. Without
limiting the foregoing, if the Warrant Certificate bears a legend
restricting the transfer of the Warrants except pursuant to an
exemption from registration under the United States Securities Act
of 1933, as amended (the "U.S.
Securities Act"), and applicable state securities laws, and
if such Warrants are being sold in compliance with the requirements
of Rule 904 of Regulation S, this Transfer Form must be accompanied
by a properly completed and executed declaration for removal of
legend in the form attached as Schedule "B" to the Warrant
Indenture; provided
further, that, if any of such Warrants are being sold
pursuant to Rule 144, if available, under the U.S. Securities Act,
the legend may be removed by delivery to the Company and the
Company's transfer agent of an opinion of counsel of recognized
standing in form and substance reasonably satisfactory to the
Company to the effect that the legend is no longer required under
applicable requirements of the U.S. Securities Act or state
securities laws.

 

CERTAIN REQUIREMENTS RELATING TO TRANSFERS – READ
CAREFULLY

 

The
signature(s) of the transferor(s) must correspond with the name(s)
as written upon the face of this certificate(s), in every
particular, without alteration or enlargement, or any change
whatsoever. All securityholders or a legally authorized
representative must sign this form. The signature(s) on this form
must be guaranteed in accordance with the transfer agent's then
current guidelines and requirements at the time of transfer.
Notarized or witnessed signatures are not acceptable as guaranteed
signatures. As at the time of closing, you may choose one of the
following methods (although subject to change in accordance with
industry practice and standards):

 

●

Canada and the USA: A Medallion
Signature Guarantee obtained from a member of an acceptable
Medallion Signature Guarantee Program (STAMP, SEMP, NYSE, MSP).
Many commercial banks, savings banks, credit unions, and all broker
dealers participate in a Medallion Signature Guarantee Program. The
Guarantor must affix a stamp bearing the actual words "Medallion
Guaranteed", with the correct prefix covering the face value of the
certificate.

 

●

Canada: A Signature Guarantee obtained
from an authorized officer of the Royal Bank of Canada, Scotia Bank
or TD Canada Trust. The Guarantor must affix a stamp bearing the
actual words "Signature Guaranteed", sign and print their full name
and alpha numeric signing number. Signature Guarantees are not
accepted from Treasury Branches, Credit Unions or Caisse Populaires
unless they are members of a Medallion Signature Guarantee Program.
For corporate holders, corporate signing resolutions, including
certificate of incumbency, are also required to accompany the
transfer, unless there is a "Signature & Authority to Sign
Guarantee" Stamp affixed to the transfer (as opposed to a
"Signature Guaranteed" Stamp) obtained from an authorized officer
of the Royal Bank of Canada, Scotia Bank or TD Canada Trust or a
Medallion Signature Guarantee with the correct prefix covering the
face value of the certificate.

 

●

Outside North America: For holders
located outside North America, present the certificates(s) and/or
document(s) that require a guarantee to a local financial
institution that has a corresponding Canadian or American affiliate
which is a member of an acceptable Medallion Signature Guarantee
Program. The corresponding affiliate will arrange for the signature
to be over-guaranteed.

 

 

 

 

OR

 

The
signature(s) of the transferor(s) must correspond with the name(s)
as written upon the face of this certificate(s), in every
particular, without alteration or enlargement, or any change
whatsoever. The signature(s) on this form must be guaranteed by an
authorized officer of Royal Bank of Canada, Scotia Bank or TD
Canada Trust whose sample signature(s) are on file with the
transfer agent, or by a member of an acceptable Medallion Signature
Guarantee Program (STAMP, SEMP, NYSE, MSP). Notarized or witnessed
signatures are not acceptable as guaranteed signatures. The
Guarantor must affix a stamp bearing the actual words: "SIGNATURE
GUARANTEED", "MEDALLION GUARANTEED" OR "SIGNATURE & AUTHORITY
TO SIGN GUARANTEE", all in accordance with the transfer agent's
then current guidelines and requirements at the time of transfer.
For corporate holders, corporate signing resolutions, including
certificate of incumbency, will also be required to accompany the
transfer unless there is a "SIGNATURE & AUTHORITY TO SIGN
GUARANTEE" Stamp affixed to the Form of Transfer obtained from an
authorized officer of the Royal Bank of Canada, Scotia Bank or TD
Canada Trust or a "MEDALLION GUARANTEED" Stamp affixed to the Form
of Transfer, with the correct prefix covering the face value of the
certificate.

 

REASON FOR TRANSFER – FOR US RESIDENTS ONLY

 

Consistent
with US IRS regulations, Odyssey Trust Company is required to
request cost basis information from US securityholders. Please
indicate the reason for requesting the transfer as well as the date
of event relating to the reason. The event date is not the day in
which the transfer is finalized, but rather the date of the event
which led to the transfer request (i.e. date of gift, date of death
of the securityholder, or the date the private sale took
place).

 

 

 

 

SCHEDULE "B"

 

FORM OF DECLARATION FOR REMOVAL OF LEGEND

 

TO:        

INDUS HOLDINGS,
INC.

c/o
Odyssey Trust Company

Suite
1230, 300 5th Avenue
SW

Calgary,
Alberta

T2P
3C4

 

 

The
undersigned (a) acknowledges that the sale of the securities of
Indus Holdings, Inc. (the "Company") to which this declaration
relates is being made in reliance on Rule 904 of Regulation S
("Regulation S") under the
United States Securities Act of 1933, as amended (the "U.S. Securities Act") and (b) certifies
that (1) it is not an affiliate of the Company (as defined in Rule
405 under the U.S. Securities Act), (2) the offer of such
securities was not made to a person in the United States and either
(A) at the time the buy order was originated, the buyer was outside
the United States, or the seller and any person acting on its
behalf reasonably believe that the buyer was outside the United
States, or (B) the transaction was executed on or through the
facilities of the Canadian Securities Exchange and neither the
seller nor any person acting on its behalf knows that the
transaction has been prearranged with a buyer in the United States,
(3) neither the seller nor any affiliate of the seller nor any
person acting on any of their behalf has engaged or will engage in
any directed selling efforts in the United States in connection
with the offer and sale of such securities, (4) the sale is bona
fide and not for the purpose of "washing off" the resale
restrictions imposed because the securities are "restricted
securities" (as such term is defined in Rule 144(a)(3) under the
U.S. Securities Act), (5) the seller does not intend to replace the
securities sold in reliance on Rule 904 of the U.S. Securities Act
with fungible unrestricted securities, and (6) the sale was not a
transaction, or part of a series of transactions which, although in
technical compliance with Regulation S, is part of a plan or scheme
to evade the registration provisions of the U.S. Securities Act.
Terms used herein have the meanings given to them by Regulation
S.

 

	

Dated: 
     
                 
                 
               
                
 
 

	

By:
     
               
                
                 
                 
 

	
 

	

Name:

	
 

	

Title:

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