Document:

Document

Exhibit 4.5

DESCRIPTION OF CAPITAL STOCK

The following description of the capital stock of Madison Square Garden Sports Corp. (the “Company,” “we,” “us,” and “our”) is not complete and may not contain all the information you should consider before investing in our capital stock. This description is summarized from, and qualified in its entirety by reference to, our amended and restated certificate of incorporation and amended by-laws, which have been publicly filed with the Securities and Exchange Commission (“SEC”). The terms of these securities may also be affected by the General Corporation Law of the State of Delaware.

We are authorized to issue 165,000,000 shares of capital stock, of which 120,000,000 shares are Class A Common Stock, par value $.01 per share (the “Class A Common Stock”), 30,000,000 shares are Class B Common Stock, par value $.01 per share (the “Class B Common Stock” and, together with the Class A Common Stock, the “Common Stock”), and 15,000,000 shares are Preferred Stock, par value $.01 per share.

Class A Common Stock and Class B Common Stock

All shares of our Common Stock currently outstanding are fully paid and non-assessable, not subject to redemption and without preemptive or other rights to subscribe for or purchase any proportionate part of any new or additional issues of stock of any class or of securities convertible into stock of any class.

Voting

Holders of Class A Common Stock are entitled to one vote per share. Holders of Class B Common Stock are entitled to ten votes per share. All actions submitted to a vote of stockholders are voted on by holders of Class A Common Stock and Class B Common Stock voting together as a single class, except for the election of directors and as otherwise set forth below. With respect to the election of directors, holders of Class A Common Stock vote together as a separate class and are entitled to elect 25% of the total number of directors constituting the whole Board of Directors and, if such 25% is not a whole number, then the holders of Class A Common Stock, voting together as a separate class, are entitled to elect the nearest higher whole number of directors that is at least 25% of the total number of directors. Holders of Class B Common Stock, voting together as a separate class, are entitled to elect the remaining directors.

If, however, on the record date for any stockholders meeting at which directors are to be elected, the number of outstanding shares of Class A Common Stock is less than 10% of the total number of outstanding shares of both classes of Common Stock, the holders of Class A Common Stock and Class B Common Stock vote together as a single class with respect to the election of directors and the holders of Class A Common Stock do not have the right to elect 25% of the total number of directors but have one vote per share for all directors and the holders of Class B Common Stock have ten votes per share for all directors. 

If, on the record date for any stockholders meeting at which directors are to be elected, the number of outstanding shares of Class B Common Stock is less than 12 1⁄2% of the total number of outstanding shares of both classes of common stock, then the holders of Class A Common Stock, voting as a separate class, continue to elect a number of directors equal to 25% of the total number of directors constituting the whole Board of Directors and, in addition, vote together with the holders of Class B Common Stock, as a single class, to elect the remaining directors to be elected at such meeting, with the holders of Class A Common Stock entitled to one vote per share and the holders of Class B Common Stock entitled to ten votes per share.

In addition, the affirmative vote or consent of the holders of at least 66 2⁄3% of the outstanding shares of Class B Common Stock, voting separately as a class, is required for the authorization or issuance of any additional shares of Class B Common Stock and for any amendment, alteration or repeal of any provisions of our amended and restated certificate of incorporation which would affect adversely the powers, preferences or rights of the Class B Common Stock. The number of authorized shares of Class A Common Stock may be increased or decreased (but not 

below the number of shares thereof then outstanding) by the affirmative vote of the holders of the majority of the Common Stock. Our amended and restated certificate of incorporation does not provide for cumulative voting.

The Dolan family, including trusts for the benefit of members of the Dolan family (collectively, the “Dolan Family Group”), by virtue of their ownership of Class B Common Stock, are able collectively to control decisions on matters in which holders of our Class A Common Stock and Class B Common Stock vote together as a single class (including, but not limited to, a change in control), and to elect up to 75% of the Company’s Board. Members of the Dolan Family Group are parties to a Stockholders Agreement, which has the effect of causing the voting power of the Class B stockholders to be cast as a block on all matters to be voted on by holders of our Class B Common Stock. Under the Stockholders Agreement, the shares of Class B Common Stock owned by members of the Dolan Family Group are to be voted on all matters in accordance with the determination of the Dolan Family Committee, except that the decisions of the Dolan Family Committee are non-binding with respect to the Class B shares owned by certain Dolan family trusts that collectively own approximately 40.5% of the outstanding Class B Common Stock. 

Advance Notification of Stockholder Nominations and Proposals

Our amended by-laws establish advance notice procedures with respect to stockholder proposals and nomination of candidates for election as directors other than nominations made by or at the direction of our Board of Directors. In particular, stockholders must notify our corporate secretary in writing prior to the meeting at which the matters are to be acted upon or directors are to be elected. The notice must contain the information specified in our amended by-laws. To be timely, the notice must be received by our corporate secretary not less than 60 or more than 90 days prior to the date of the stockholders’ meeting, provided that if the date of the meeting is publicly announced or disclosed less than 70 days prior to the date of the meeting, the notice must be given not more than 10 days after such date is first announced or disclosed.

No Stockholder Action by Written Consent

Our amended and restated certificate of incorporation provides that, except as otherwise provided as to any series of preferred stock in the terms of that series, no action of stockholders required or permitted to be taken at any annual or special meeting of stockholders may be taken without a meeting of stockholders, without prior notice and without a vote, and the power of the stockholders to consent in writing to the taking of any action without a meeting is specifically denied.

Conversions

The Class A Common Stock has no conversion rights. The Class B Common Stock is convertible into Class A Common Stock in whole or in part at any time and from time to time on the basis of one share of Class A Common Stock for each share of Class B Common Stock. In the case of any sale or disposition of Class B Common Stock by a Dolan children trust, or of any children trust shares by any other Dolan family interest to which such shares have been transferred, such stock must be converted to Class A Common Stock on a one-for-one basis. This conversion requirement will not apply to sales or dispositions of Class B Common Stock to Charles F. Dolan or other Dolan family interests. Any conversion of Class B Common Stock into Class A Common Stock would result in the issuance of additional shares of Class A Common Stock. As a result of any such conversion, existing holders of Class A Common Stock would own the same percentage of the outstanding Common Stock but a smaller percentage of the total number of shares of issued and outstanding Class A Common Stock. Additionally, the conversion of shares of Class B Common Stock, which are entitled to ten votes per share, into shares of Class A Common Stock, which are entitled to one vote per share, would increase the voting power of Class A Common Stockholders with respect to all actions that are voted on by holders of Class A Common Stock and Class B Common Stock as a single class; however, the holders of Class B Common Stock, voting as a separate class, would continue to have the right to elect up to 75% of the Board of Directors unless and until the Class B Common Stock represented less than 12 1/2% of the outstanding Common Stock and, when both classes vote together as one class, would continue to represent a majority of the outstanding voting power of our Common Stock unless and until the Class B Common Stock represented less than approximately 9.1% of our outstanding Common Stock.

Dividends

Holders of Class A Common Stock and Class B Common Stock are entitled to receive dividends equally on a per share basis if and when such dividends are declared by the Board of Directors from funds legally available therefor. No dividend may be declared or paid in cash or property or shares of either Class A Common Stock or Class B Common Stock unless the same dividend is paid simultaneously on each share of the other class of Common Stock. In the case of any stock dividend, holders of Class A Common Stock are entitled to receive the same dividend on a percentage basis (payable in shares of or securities convertible to shares of Class A Common Stock and other securities of us or any other person) as holders of Class B Common Stock receive (payable in shares of or securities convertible into shares of Class A Common Stock, shares of or securities convertible into shares of Class B Common Stock and other securities of us or any other person). The distribution of shares or other securities of the Company or any other person to common stockholders is permitted to differ to the extent that the Common Stock differs as to voting rights and rights in connection to certain dividends.

Liquidation

Holders of Class A Common Stock and Class B Common Stock share with each other on a ratable basis as a single class in the net assets available for distribution in respect of Class A Common Stock and Class B Common Stock in the event of a liquidation.

Other Terms

Neither the Class A Common Stock nor the Class B Common Stock may be subdivided, consolidated, reclassified or otherwise changed, except as expressly provided in our amended and restated certificate of incorporation, unless the other class of Common Stock is subdivided, consolidated, reclassified or otherwise changed at the same time, in the same proportion and in the same manner.

In any merger, consolidation or business combination the consideration to be received per share by holders of either Class A Common Stock or Class B Common Stock must be identical to that received by holders of the other class of Common Stock, except that in any such transaction in which shares of capital stock are distributed, such shares may differ as to voting rights only to the extent that voting rights now differ between Class A Common Stock and Class B Common Stock.

Transfer Agent

The transfer agent and registrar for the Class A Common Stock is EQ Shareowner Services (f/k/a Wells Fargo Shareowner Services).

Transfer Restrictions

The Company is the indirect owner of professional sports franchises in the NBA and NHL. As a result, ownership and transfers of our Common Stock are subject to certain restrictions under the constituent documents of the NBA and NHL as well as under the Company’s agreements with the NBA and NHL in connection with their approval of the spin-off from MSG Networks Inc. (the “Spin-off”).

Under the NBA arrangement, transfers and ownership of 5% or more of our Common Stock require the prior approval of the NBA. So long as the Company is controlled by the Dolan family, “Institutional Investors” are permitted to acquire and own up to 15% of our Class A Common Stock without obtaining prior approval of the NBA. For this purpose, an “Institutional Investor” is a person (i) whose total assets owned and under management exceeds $500 million ($100 million in the case of a registered investment company) and (ii) who fits within one or more of the following categories (defined with reference to clauses (A)-(F) and (J) of Rule 13d-1(b)(1)(ii) under the Exchange Act):

•A broker or dealer registered under Section 15 of the Exchange Act;
•A bank as defined in Section 3(a)(6) of the Exchange Act;

•An insurance company as defined in Section 3(a)(19) of the Exchange Act;
•An investment company registered under Section 8 of the Investment Company Act of 1940;
•Any person registered as an investment adviser under Section 203 of the Investment Advisers Act of 1940 or under the laws of any state;
•An employee benefit plan as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended 29 U.S.C. 1001 et seq. (“ERISA”) that is subject to the provisions of ERISA, or any such plan that is not subject to ERISA that is maintained primarily for the benefit of the employees of a state or local government or instrumentality, or an endowment fund; and
•A non-U.S. institution that is the functional equivalent of any of the institutions listed above, so long as the non-U.S. institution is subject to a regulatory scheme that is (A) substantially comparable to the regulatory scheme applicable to the equivalent U.S. institution and (B) imposed under the laws of Switzerland, Canada, Australia, Japan, China or any country in Europe that is part of the “G-20” group of nations.

In addition, an “Affiliate” of an Institutional Investor is also deemed to be an Institutional Investor; provided, that no such Affiliate that is not an Institutional Investor in its own right can own more than 5% of our outstanding Common Stock and no Institutional Investor, together with its Affiliates, can own more than 15% of our outstanding Class A Common Stock. For purposes of these transfer restrictions, an “Affiliate” means a person that controls, is controlled by or is under common control with the institution/investor.

Transfers of our Class B Common Stock are also subject to restrictions under the NBA rules, subject to certain exceptions involving transfers of such shares among Dolan family interests. Prior to any transaction that results in the Dolan family no longer controlling the Company, we will likely need to negotiate a new agreement with the NBA.

Under the NHL arrangements, transfers and ownership of our Class A Common Stock are subject to NHL approval only if they constitute a “controlling interest” in the New York Rangers. The NHL has agreed that so long as the Dolan family has the right to elect a majority of our board of directors, there are no restrictions on transactions in, or ownership of, our Class A Common Stock. Transfers of our Class B Common Stock are subject to restrictions under the NHL arrangements, subject to certain exceptions involving transfers of such shares among Dolan family interests. Prior to any transaction that results in the Dolan family no longer controlling the Company, we will likely need to negotiate a new consent agreement with the NHL.

In order to protect the Company and its NBA and NHL franchises from sanctions that might be imposed by the NBA or NHL as a result of violations of these restrictions, our amended and restated certificate of incorporation provides that if at any time the Company owns, directly or indirectly, an interest in a professional sports franchise, the ownership and transfer of shares of our Common Stock are subject to any applicable restrictions on transfer imposed by the league or other governing body with respect to such franchise (a “League”), which restrictions are described in our filings (including exhibits) with the SEC. If a transfer of shares of our Common Stock (including any pledge or creation of a security interest therein) to a person or the ownership of shares of our Common Stock by a person requires approval or other action by a League and such approval or other action has not been obtained or taken as required, the Company shall have the right by written notice to the holder to require the holder to dispose of the shares of Common Stock which triggered the need for such approval (the “excess shares”) within 10 days of delivery of such notice (a “required divestiture”). If a holder has failed to provide documentation satisfactory to the Company of the holder’s compliance with a required divestiture by the fifth business day following the end of the 10 day period, then, in addition to any other remedies the Company may have for such failure to comply with a required divestiture, the Company shall have the right, in its sole discretion, to redeem from such holder the excess shares (“mandatory redemption”) by providing written notice of such required divestiture to the holder (a “redemption notice”) and mailing a check payable to the holder in an amount equal to 85% of the fair market value of the excess shares on the date of the notice. For the purposes of establishing the fair market value of the excess shares, the fair market value of a share of our Common Stock are equal to the average of the closing sale price (or if no closing sale price is reported, the last reported sale price) of our Class A Common Stock on NYSE (or if the Class A Common Stock is not traded on NYSE on any date of determination, the principal securities exchange on which such stock is listed or quoted) over the 10 trading day period ending on the second trading day preceding the redemption notice, or such other amount as determined in good faith by the Company’s board of directors. A mandatory redemption 

shall require no action by the holder of the redeemed shares and the shares shall be deemed cancelled upon our delivery of payment therefore. The certificates representing our Common Stock contain a legend with respect to the foregoing provision in our amended and restated certificate of incorporation.

Preferred Stock

Under our amended and restated certificate of incorporation, our Board of Directors is authorized, without further stockholder action to provide for the issuance of up to 15,000,000 shares of preferred stock in one or more series. The powers, designations, preferences and relative, participating, optional or other special rights, and qualifications, limitations or restrictions, including dividend rights, voting rights, conversion rights, terms of redemption and liquidation preferences, of the preferred stock of each series will be fixed or designated by the Board of Directors pursuant to a certificate of designations. There are no shares of our preferred stock currently outstanding. Any issuance of preferred stock may adversely affect the rights of holders of our Common Stock and may render more difficult certain unsolicited or hostile attempts to take over the Company.

Section 203 of the Delaware General Corporation Law

Section 203 of the General Corporation Law of the State of Delaware prohibits certain transactions between a Delaware corporation and an “interested stockholder.” An “interested stockholder” for this purpose is a stockholder who is directly or indirectly a beneficial owner of 15% or more of the aggregate voting power of a Delaware corporation. This provision prohibits certain business combinations between an interested stockholder and a corporation for a period of three years after the date on which the stockholder became an interested stockholder, unless: (1) prior to the time that a stockholder became an interested stockholder, either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder is approved by the Company’s Board of Directors, (2) the interested stockholder acquired at least 85% of the aggregate voting power of the Company in the transaction in which the stockholder became an interested stockholder, or (3) the business combination is approved by a majority of the Board of Directors and the affirmative vote of the holders of two-thirds of the aggregate voting power not owned by the interested stockholder at or subsequent to the time that the stockholder became an interested stockholder. These restrictions do not apply if, among other things, the Company’s certificate of incorporation contains a provision expressly electing not to be governed by Section 203. Our amended and restated certificate of incorporation does not contain such an election. However, our Board of Directors exercised its right under Section 203 to approve the acquisition of our Common Stock in the Spin-off by members of the Dolan family group. This has the effect of making Section 203 inapplicable to transactions between the Company and current and future members of the Dolan family group. Section 203 also may be inapplicable to the Dolan family group or to other persons for other reasons specified in the statute.Exhibit 4.1

 

	Request
    ID:	019819890	Province
    of Ontario	Date
    Report Produced:	2017/01/19
	Demande
    n°:	 	Province
    de l'Ontario	Document
    produit le:	 
	Transaction
    ID:	063326122	Ministry
    of Government Services	Time
    Report Produced:	11:42:46
	Transaction
    n°:	 	Ministère
    des Services gouvernementaux	Imprimé
    à:	 
	Category
    ID:	CT	 	 	 
	Catégorie:	 	 	 	 

 

Certificate of Incorporation

Certificat de constitution

 

	This
    is to certify that	Ceci
    certifie que

 

C
A R D I O LT H E R A P E U T I C SI N C .

 

	Ontario
    Corporation No.	Numéro
    matricule de la personne morale en Ontario

 

0
0 2 5 5 6 9 8 3

 

	is
    a corporation incorporated, under the laws of the Province of Ontario.	est
    une société constituée aux termes des lois de la province
    de l'Ontario.
	 	
	 	 
	These
    articles of incorporation are effective on	Les
    présents statuts constitutifs entrent en vigueur le

  

J A N U A R Y1 9J   A
N V I E R ,2 0 1 7

 

 

 

 

Director/Directeur

Business
Corporations Act/Loi sur les sociétés par actions

 

 

    	 	 

     

    

 

	Name
                                            of Corporation

CARDIOL THERAPEUTICS INC.

	Ontario
                                            Corporation Number

002556983

	 	 
	 	Request
                                            ID

019819890

 

ADDITIONAL INFORMATION
FOR ELECTRONIC INCORPORATION

 

	CONTACT PERSON	 
	First Name	Last Name
	Anurag	Gupta
	Name of Law Firm	 
	Anurag Gupta Professional Corporation	 

 

 

	ADDRESS

    Street #
	 

    Street Name
	 	 

    Suite #

	1400	Cornwall	Road	12
	Additional
    Information	 	 	City	 
	Anurag Gupta

    Province
	 	 

    Country
	Oakville	 

    Postal Code

	ONTARIO	 	CANADA	 	L6J
    7W5
	TELEPHONE
    #:	416
    521	9834
    ext 201	 	 
	 	 	 	 	 	 	 

NUANS® SEARCH DETAILS

 

	Corporate
    Name Searched on NUANS®	NUANS®
    Reservation Reference #
	CARDIOL THERAPEUTICS INC.	120131899
	 	 
	 	Date of NUANS® Report
	 	2017/01/09

 

    	 	 

     

    

  

	 	Page:
                                            1

	 	 
	
	Ontario
                                            Corporation Number

	Request ID / Demande n°	Numéro de la compagnie en Ontario
	

	 
	019819890	002556983
	 	

 

 

 

	FORM
    1		FORMULE NUMÉRO 1
	 	 	 
	BUSINESS CORPORATIONS
    ACT	/	LOI SUR LES SOCIÉTÉ
    PAR ACTIONS
	 	 	 
	 	 	 
		ARTICLES
    OF INCORPORATION	 
		STATUTS
    CONSTITUTIFS	 
	 	 	 
	1.        The
    name of the corporation is:		Dénomination sociale de la compagnie:      
     
	 	 	 
	           CARDIOL THERAPEUTICS INC.	 	 
	 	 	 
	 	 	 
	 	 	 
	2.        The
    address of the registered office is:		Adresse du siège social:
	 	 	 
	           C/O
    DAVID ELSLEY	 	 
	           2275
        UPPER MIDDLE RD.
    Suite 101		
	 	 	 
	           (Street
    & Number, or R.R. Number & if Multi-Office Building give Room No.)
	           (Rue
    et numéro, ou numéro de la R.R. et, s’il s’agit édifice à bureau, numéro du bureau)
	 	 	 
	           OAKVILLE		ONTARIO
	           CANADA		L6H 0C3
	           (Name
    of Municipality or Post Office)		(Postal Code/
    Code postal)
	           (Nom de la municipalité
    ou du bureau de poste)
	 	 	 
	3.       
    Number (or minimum and maximum		Nombre (ou nombres minimal et maximal)
	           number) of directors is:		d’administrateurs:
	MINIMUM 1		MAXIMUM 10
	 	 	 
	4.       The first director(s) is/are:		Premier(s) administrateur(s):
	 	 	 
	          First
    name, initials and surname		Resident Canadian         State
    Yes or No
	          Prénom,
    initiales et nom de famille		Résident Canadien               Oui/Non
	 	 	 
	          Address
    for service, giving Street & No.		Domicile élu,
    y compris la rue et le
	          or
    R.R. No., Municipality and Postal Code		numéro, le numéro
    de la R.R., ou le nom de la municipalité et le code postal
	 	 	 
	*        DAVID		Yes       
     
	          ELSLEY	 	 
	 	 	 
	           2320
    CHEVERIE ST	 	 
	 	 	 
	           OAKVILLE
                                  ONTARIO

                                                                                           CANADA
                                            L6J 5W4
	 	 

 

 

    	 	 

     

    

 

	 	Page:
                                            2

	 	 
	
	Ontario
                                            Corporation Number

	Request ID / Demande n°	Numéro de la compagnie en Ontario
	

	 
	019819890	002556983
	 	

  

	4.      
    The first director(s) is/are:	Premier(s)
    administrateur(s):

  

	First
    name, initials and surname	Resident
    Canadian	State
    Yes or No
	Prénom,
    initiales et nom de famille	Résident
    Canadien	Oui/Non

 

	Address for
    service, giving Street & No.	Domicile
    élu, y compris la rue et le
	or R.R. No., Municipality
    and Postal Code	numéro, le numéro
    de la R.R., ou le nom de la municipalité et le code postal

 

	*       
    ELDON	Yes
	          SMITH	 
	 	 
	          1901
    VARSITY ESTATES DRIVE N.W. Suite 16	
	 	 
	          CALGARY ALBERTA	 
	          CANADA
    T3B 4T7	 
	 	 
	*        TERRENCE
    MARTIN	Yes
	           LYNCH	 
	 	 
	          1000
    KING STREET WEST Suite 305 	
	 	 
	          TORONTO ONTARIO	 
	          CANADA
    M6K 3N1	 
	 	 
	*        ANTHONY	No
	          BOLTON	 
	 	 
	          7 WYEBANK GROVE

                                             BAKEWELL
	 
	          DERBYSHIRE	 
	          UNITED KINGDOM DE45 1BJ	 

 

    	 	 

     

    

 

	 	Page:
                                            3

	 	 
	
	Ontario
                                            Corporation Number

	Request ID / Demande n°	Numéro de la compagnie en Ontario
	

	 
	019819890	002556983
	 	

 

 

5.       
Restrictions, if any, on business the corporation may carry on or on powers the corporation may exercise.

      
     Limites, s'il y a lieu, imposées aux activités commerciales ou aux pouvoirs de la compagnie.

 

      
     None

  

 

6.
       The classes and any maximum number of shares that the corporation is authorized to
issue:

      
     Catégories et nombre maximal, s'il y a lieu, d'actions que la compagnie est autorisée à
 émettre:

 

      
     The authorized capital of the corporation shall be 9,000,000 (nine million) Class A Common Shares.

 

    	 	 

     

    

 

	 	Page:
                                            4

	 	 
	
	Ontario
                                            Corporation Number

	Request ID / Demande n°	Numéro de la compagnie en Ontario
	

	 
	019819890	002556983
	 	

 

 

	7.	Rights,
                                            privileges, restrictions and conditions (if any) attaching to each class of shares, and directors'
                                            authority with respect to any class of shares which may be issued in series:

Droits, privilèges, restrictions et
conditions, s'il y a lieu, rattachés à chaque catégorie d'actions et pouvoirs des administrateurs relatifs à
chaque catégorie d'actions que peut être émise en série:

 

The designations, preferences, rights, conditions,
restrictions, limitations or prohibitions attaching to the Class A Common Shares are:

 

(a) 
The Class A Common Shares shall be entitled to receive, in any financial year of the Corporation, dividends at such time
and for such amount as may be determined from time to time by the directors in their discretion.

 

(b) 
Each Class A Common Shares shall entitle the holder to receive notice of, and to attend and exercise their respective votes
at, all annual and general meetings of the shareholders of the Corporation. Holders of the Class A Common Shares shall be entitled to
one (1) vote for each share held.

 

(c) 
Subject to the rights of the holders of any shares ranking prior to or on a parity with the Class A Common Shares, the
holders of the Class A Common Shares shall in the event of any liquidation, dissolution or winding-up of the Corporation, whether voluntary
or involuntary, or other distribution of assets of the Corporation among its shareholders for the purpose of winding up its affairs be
entitled to receive the remaining assets of the Corporation.

 

(d) 
The Corporation may, at any time and from time to time, purchase for cancellation the whole or any part of the Class A
Common Shares, at the lowest purchase amount at which, in the opinion of the directors, the shares are obtainable (the purchase amount
as defined herein) together with all dividends declared thereon and unpaid. For purposes of this paragraph, the "purchase amount"
of any Class A Common Shares, shall be an amount determined by dividing the en bloc fair market value of all the issued and outstanding
Class A Common Shares, of the Corporation at the date of such purchase by the number of such shares then issued and outstanding. The
en bloc fair market value of such shares shall be the amount determined to be the fair market value in accordance with generally accepted
valuation principles.

 

(e) 
Any amendment to the Articles of the Corporation to delete or vary any preference, right, condition, restriction, limitation
or prohibition attaching to the Class A Common Shares, or to create shares ranking in priority to, or on a parity with, the Class A Common
Shares must be authorized by at least two-thirds (2/3) of the votes cast at a meeting of the holders of each of the Class A Common Shares
of the Corporation (voting separately as a class), duly called for that purpose.

 

    	 	 

     

    

 

	 	Page:
                                            5

	 	 
	
	Ontario
                                            Corporation Number

	Request ID / Demande n°	Numéro de la compagnie en Ontario
	

	 
	019819890	002556983
	 	

 

	8.	The
                                            issue, transfer or ownership of shares is/is not restricted and the restrictions (if any)
                                            are as follows:

L'émission, le transfert ou la propriété
d'actions est/n'est pas restreinte. Les restrictions, s'il y a lieu, sont les suivantes:

 

No shares of the Corporation may be transferred
without either:

 

(a) 
the previous consent of the directors of the Corporation expressed by a resolution passed by the board of directors or
by an instrument or instruments in writing signed by all the directors; or

 

(b) 
the previous consent of the holders of at least fifty-one percent (51%) of the shares for the time being outstanding expressed
by a resolution passed by the shareholders or by an instrument or instruments in writing signed by such shareholders.

 

    	 	 

     

    

 

	 	Page:
                                            6

	 	 
	
	Ontario
                                            Corporation Number

	Request ID / Demande n°	Numéro de la compagnie en Ontario
	

	 
	019819890	002556983
	 	

 

	9.	Other provisions if any:

Autres dispositions, s'il y a lieu:

 

(a) 
Without in any way restricting the powers of the Corporation, the board of directors may from time to time and without
authorization of the shareholders:

 

(i)
borrow money upon the credit of the Corporation;

 

(ii)
issue, reissue, sell or pledge debt obligations of the Corporation;

 

(iii) 
give a guarantee on behalf of the Corporation to secure performance of an obligation of any person; and

 

(iv) 
mortgage, hypothecate, pledge or otherwise create a security interest in all or any property of the Corporation, owned
or subsequently acquired, to secure any obligation of the Corporation.

 

(b) 
The board of directors may from time to time delegate any or all of the foregoing powers to such officers or directors
of the Corporation to such extent and in such manner as the board of directors may from time to time determine.

 

    	 	 

     

    

 

	 	Page:
                                            7

	 	 
	
	Ontario
                                            Corporation Number

	Request ID / Demande n°	Numéro de la compagnie en Ontario
	

	 
	019819890	002556983
	 	

  

	10.	The names and addresses
                                            of the incorporators are

Nom et adresse des fondateurs

 

	First name,
    initials and last name	Prénom,
    initiale et nom de
	or corporate name	famille ou dénomination
    sociale

 

Full address for service or address of registered
office or of principal place of business giving street & No. or R.R. No., municipality and postal code

Domicile élu, adresse du siège
social au adresse de l'établissement principal, y compris la rue et le numéro, le numéro de la R.R., le nom de la
municipalité et le code postal

 

	*	DAVID
                                            ELSLEY
	 	 
	 	2320 CHEVERIE ST
	 	 

OAKVILLE ONTARIO

CANADA L6J 5W4

 

	*	ELDON SMITH
	 	 

1901 VARSITY ESTATES DRIVE N.W.Suite 16

 

CALGARY ALBERTA

CANADA T3B 4T7

  

 

	*	TERRENCE MARTIN LYNCH
	 	 

1000 KING STREET WESTSuite 305

 

TORONTO ONTARIO

CANADA M6K 3N1

 

    	 	 

     

    

 

	 	Page:
                                            8

	 	 
	
	Ontario
                                            Corporation Number

	Request ID / Demande n°	Numéro de la compagnie en Ontario
	

	 
	019819890	002556983
	 	

  

	10.	The names and addresses of the incorporators
                                            are

Nom et adresse des fondateurs

 

	First name,
    initials and last name	Prénom,
    initiale et nom de
	or corporate name	famille ou dénomination
    sociale

 

Full address for service or address of registered
office or of principal place of business giving street & No. or R.R. No., municipality and postal code

Domicile élu, adresse du siège
social au adresse de l'établissement principal, y compris la rue et le numéro, le numéro de la R.R., le nom de la
municipalité et le code postal

 

	*	ANTHONY BOLTON

 

7 WYEBANK GROVE

BAKEWELL

DERBYSHIRE

UNITED KINGDOM DE45 1BJ

 

    	 	 

     

    

 

	Name
                                            of Corporation

CARDIOL THERAPEUTICS INC.

	Ontario
                                            Corporation Number

002556983

	 	 
	 	Request
                                            ID

019819890

 

ELECTRONIC INCORPORATION

 

TERMS AND CONDITIONS

 

The following are
the terms and conditions for the electronic filing of Articles of Incorporation under the Ontario Business Corporations Act (OBCA) with
the Ministry of Government Services. Agreement to these terms and conditions by at least one of the incorporators listed in article 10
of the Articles of Incorporation is a mandatory requirement for electronic incorporation.

 

	1)	The applicant is required to obtain an Ontario biased or
                                       weighted NUANS search report for the proposed name. The applicant must provide the NUANS name
                                       searched, the NUANS reservation number and the date of the NUANS report. The NUANS report must
                                       be kept in electronic or paper format at the corporation's registered office address.

 

	2)	All first directors named in the articles must sign a consent
                                       in the prescribed form. The original consent must be kept at the corporation's registered office
                                       address.

 

	3)	A Corporation acquiring a name identical to that of another
                                       corporation must indicate that due diligence has been exercised in verifying that the Corporation
                                       meets the requirements of Subsection 6(1) of Regulation 62 made under the OBCA. Otherwise, the
                                       Corporation is required to obtain a legal opinion on legal letterhead signed by a lawyer qualified
                                       to practise in Ontario that clearly indicates that the corporations involved comply with Subsection
                                       6(2) of that Regulation by referring to each clause specifically. The original of this legal opinion
                                       must be kept at the Corporation's registered office address. The applicant must complete the electronic
                                       version of this legal opinion provided by one of the Service Providers under contract with the
                                       Ministry.

 

	4)	The date of the Certificate of Incorporation will be the
                                       date the articles are updated to the ONBIS electronic public record database. Articles submitted
                                       electronically outside MGS, ONBIS access hours, will receive an endorsement date effective the
                                       next business day when the system resumes operation, if the submitted Articles of Incorporation
                                       meet all requirements for electronic incorporation. Articles of Incorporation submitted during
                                       system difficulties will receive an endorsement date effective the date the articles are updated
                                       to the ONBIS system.

 

	5)	The electronic Articles of Incorporation must be in the format
                                       approved by the Ministry and submitted through one of the Service Providers under contract with
                                       the Ministry.

 

	6)	Upon receipt of the Certificate of Incorporation issued by
                                       the ONBIS system, a duplicate copy of the Articles of Incorporation with the Ontario Corporation
                                       Number and the Certificate of Incorporation must be kept in paper or electronic format. The Ministry
                                       will print and microfilm copies of the Certificate of Incorporation, the Articles of Incorporation
                                       and any other documentation submitted electronically. These will be considered the true original
                                       filed copies.

 

	7)	The sole responsibility for correctness and completeness
                                       of the Articles of Incorporation, and for compliance with the OBCA and all regulations made under
                                       it, lies with the incorporator(s) and/or their legal advisor(s), if any.

 

The incorporator(s) have read the above Terms
and Conditions and they understand and agree to them.

 

I am an incorporator or I am duly authorized to
represent and bind the incorporator(s).

 

	First Name	Last Name
	DAVID	ELSLEY

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