Document:

CHAIRMANSHIP AGREEMENT

This Chairmanship Agreement (the "Agreement") is effective as of the 1st day of January 2017, between Everest Reinsurance Group, Ltd., a Bermuda exempted company incorporated with limited liability (the "Company"), and Joseph V. Taranto ("Mr. Taranto").

WITNESSETH

WHEREAS, at its most recent Annual General Meeting held on May 18, 2016, Mr. Taranto was elected by the Company's shareholders to serve on the Company's Board of Directors (the "Board") for a one-year term expiring on the date of the Company's 2017 Annual General Meeting; and

WHEREAS, the Board appointed Mr. Taranto as Chairman of the Board; and

WHEREAS, the Company recognizes Mr. Taranto's comprehensive knowledge of the Company and the (re)insurance industry and his unique and highly regarded reputation within the industry; and

WHEREAS, the Company's Board of Directors (the "Board") has determined that it is in the best interest of the Company and its shareholders to continue to secure the services of Mr. Taranto as a Director and Chairman of the Board pursuant to the terms and conditions hereof; and

WHEREAS, Mr. Taranto is willing to accept such a role on the Board and to enter into this Agreement;

NOW, THEREFORE, in consideration of the promises and mutual covenants contained herein and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.                  POSITION: DUTIES: RESPONSIBILITIES

1.1              The Company hereby retains Mr. Taranto and Mr. Taranto hereby agrees to serve during the term of this Agreement as a non-employee director and Chairman of the Board of the Company ("Chairman") in accordance with the Company's Bye-laws and subject to annual election to the Board by the Company's shareholders during the Company's Annual General Meetings that occur over the Term of this Agreement; provided, however, that in no event shall Mr. Taranto be deemed an employee of the Company or any of its affiliates or be required to serve as a director of the Company unless he consents to do so.

1.2              During the course of his Chairmanship for the Term of this Agreement, Mr. Taranto agrees to devote such time as necessary to fulfill his duties as a Board member and Chairman.

1.3             As Chairman and Board member, Mr. Taranto's duties shall include:

	
(a)

	
Attending all scheduled Board meetings during the year.

	
(b)

	
Serving on the Board's Investment Committee.

 

	
(c)

	
Serving as the Board's representative in consulting with the Company's Chief Executive Officer ("CEO") to approve share buybacks in accordance with the pending Board authorization for share buybacks.

	
(d)

	
Working with the CEO and the Corporate Secretary to set Board calendars, scheduling any special meetings of the Board, review agendas for Board meetings and conduct all Board meetings, ensure proper flow of information to Board members, facilitate effective operation of Board work and help in the recruitment and orientation of new directors.

	
(e)

	
Liaising with the CEO on Board-related issues and developing and maintaining business relationships beneficial to the Company by representing the Board at industry conferences and events.

	
(f)

	
Providing additional support, advice and counsel on any special or extraordinary projects as requested from time-to-time by the Board or the CEO.

 

2.                 TERM

The term of this Agreement shall commence as of January 1, 2017, and shall continue through December 31, 2019, subject to Mr. Taranto's annual election to the Board by the Company's shareholders during the Company's Annual General Meetings that occur over the Term of this Agreement.

3.                  COMPENSATION

During the Term of this Agreement the Company shall pay Mr. Taranto:

3.1              An annual retainer of One Million Five Hundred Thousand Dollars ($1,500,000) ("Retainer"), payable quarterly on the 15th day of the second month of each quarter.

3.2              Standard annual director fees, including equity compensation pursuant to the Company's 2003 Non-Employee Directors Equity Compensation Plan Amended Through the Third Amendment and approved by the Company's shareholders on May 18, 2016, as determined by the Board as compensation for all Board Members ("Director Fees").

4.                  EXPENSE REIMBURSEMENTS

During the Term of this Agreement, Mr. Taranto will be entitled to receive reimbursement by the Company for all reasonable, documented out-of-pocket expenses incurred by him in connection with his performing services hereunder.

5.                  TERMINATION

5.1              Removal Without Cause.  In the event that (a) Mr. Taranto is removed from the Board without cause, or (b) the Company's shareholders fail to elect Mr. Taranto to the Board at any Annual General Meeting occurring during the Term of this Agreement, then this 

Agreement shall immediately terminate, and Mr. Taranto shall have no further obligations of any kind under or arising out of this Agreement; provided, however, that the provisions of Section 6 below shall continue to remain in full force and effect. The Company shall be obligated to pay Mr. Taranto the following:

		(i)	within sixty (60) days of the Agreement's termination date, a lump sum cash payment equal to the remainder of the Retainer payments that Mr. Taranto would have earned had he remained on the Board for the entire Term of this Agreement, subject to a maximum payment of One Million Five Hundred Thousand Dollars ($1,500,000);

		(ii)	all outstanding Director Fees earned but not yet paid up to the date of termination; and

		(iii)	all reimbursable out-of-pocket expenses incurred by Mr. Taranto in connection with his duties but not yet paid.

5.2              Director Resignation for Good Reason.  If any of the following circumstances shall have occurred without Mr. Taranto's express consent and shall have remained uncorrected for more than thirty (30) days following Mr. Taranto's giving written notice of such occurrence to the Company, then this Agreement shall immediately terminate and Mr. Taranto's resignation from the Board shall be deemed a "Resignation for Good Reason":

(a) a materially adverse change in the nature or status of his position or responsibilities as Chairman;

(b) a reduction by the Company in the Retainer set forth in Section 3.1 of this Agreement; or

(c) a material breach of this Agreement by the Company.

In the event of such Resignation for Good Reason, the Company shall pay to Mr. Taranto the sums set forth in section 5.1 (i)-(iii).

5.3              Due Cause.  The Company may remove Mr. Taranto from the Board and terminate this Agreement at any time for Due Cause. In the event of such removal for Due Cause, Mr. Taranto shall only receive all outstanding Director Fees earned but not yet paid up to the date of removal and any reimbursable out-of-pocket expenses incurred by Mr. Taranto in connection with his duties but not yet paid. The term "Due Cause" shall mean

(a) repeated and gross negligence in fulfillment of, or repeated failure of Mr. Taranto to fulfill, his material obligations under this Agreement, in either event after written notice thereof;

(b) material willful misconduct by Mr. Taranto in respect of his obligations hereunder;

(c) conviction of any felony, or any crime of moral turpitude; or

(d) a material breach in trust committed in willful or reckless disregard of the interests of the Company or its affiliates or undertaken for personal gain.

5.4              For the sake of clarity and by way of example of how the calculus contained in section 5.1(i) would operate, if Mr. Taranto was removed from the Board without cause or Mr. Taranto resigned his directorship for Good Reason on July 1, 2017, he would receive a lump sum payment of $1,500,000 (i.e., $4.5M Retainer x 30/36 = $3.75M.  $3.75M > $1.5M, therefore payment due to Mr. Taranto capped at $1.5M).

In contrast, if Mr. Taranto was removed from the Board without cause or resigned his directorship for Good Reason on July 1, 2019, he would receive a lump sum payment equal to $750,000 (i.e., $4.5M Retainer x 6/36 = $750,000.  $750,000 < $1.5M, therefore payment of $750K due to Mr. Taranto).

6.                  Restrictive Covenant

6.1              Non-Competition.  In order to protect the Company's legitimate domestic and international business interests, Mr. Taranto agrees that, in exchange for the benefits provided for in this Agreement, during the Term of this Agreement and for a period of twelve (12) months from the last day that Mr. Taranto serves as a member of the Board (the "Non-Competition Period"), he shall not engage in, participate in, carry on, own or manage, directly or indirectly, either for himself or as a partner, stockholder, investor, officer, director, employee, agent, independent contractor, representative or consultant of any person, partnership, corporation or other enterprise, in any "Competitive Business" in any jurisdiction in which the Company actively conducts business.  For purposes of this Section 6, "Competitive Business" means the property and casualty insurance or reinsurance business.

Engaging in the following activities will not be deemed to be engaging or participating in a Competitive Business: (i) investment banking; (ii) passive ownership of less than 2% of any class of securities of a company; and (iii) engaging or participating solely in a non-competitive business of an  entity which also separately operates a business which is a "Competitive Business."

6.2              Interpretation and Acknowledgment.  If any restriction set forth in this Section 6 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.  If Mr. Taranto violates the provisions of this Section 6, he shall continue to be bound by the restrictions set forth herein until a period of twelve (12) months (counting the period before the violation commenced and after the violation has ceased) has expired without any violation of such provisions or until the Non-Competition Period has expired, whichever is longer.

Mr. Taranto acknowledges that the restrictions contained in Section 6.1 are necessary for the protection of the business and goodwill of the Company and considers the restrictions to be reasonable for such purpose.  He agrees that any breach of Section 6.1 is likely to cause the Company substantial and irrevocable damage and therefore, in the event of any breach of such Section, Mr. Taranto agrees that the Company, in addition to such other remedies that may be available, shall be entitled to injunctive relief, as determined by any court of competent jurisdiction, without the Company's posting of a bond.

6.3              Survivorship.  Notwithstanding anything else to the contrary in this Agreement, the provisions of Section 6 shall continue to remain in effect following termination of this Agreement for any reason.

7.                  GOVERNING LAW.

This Agreement shall be deemed a contract made under, and for all purposes shall be construed in accordance with, the laws of Bermuda without reference to the principles of conflict of laws.

8.                  ENTIRE AGREEMENT

This Agreement contains all the understandings and representations between the parties hereto pertaining to the subject matter hereof and supersedes all undertakings and agreements, whether oral or in writing, if any there be, previously entered into by them with respect thereto.

9.                  AMENDMENT OR MODIFICATION: WAIVER

No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing, signed by Mr. Taranto and by a duly authorized officer of the Company. Except as otherwise specifically provided in this Agreement, no waiver by either party hereto of any breach by the other party of any condition or provision of the Agreement to be performed by such other party shall be deemed a waiver of a similar or dissimilar provision or condition at the same or any prior or subsequent time.

10.              NOTICES

Any notice to be given hereunder shall be in writing and delivered personally or sent by overnight mail, addressed to the party concerned at the address indicated below or to such other address as such party may subsequently give notice of hereunder in writing:

If to the Company:

Everest Re Group, Ltd.

Seon Place, 4th Floor

141 Front Street

P.O. Box HM 845

Hamilton HM 19, Bermuda

Attn:  General Counsel

If to Mr. Taranto:

160 Henry Street

Brooklyn, New York 11201

IN WITNESS WHEREOF, the parties have executed this Agreement as of August 15th 2016.

 

Everest Re Group, Ltd.

 

 

/S/ SANJOY MUKHERJEE                                                      /S/ JOSEPH V. TARANTO

Sanjoy Mukherjee                                                                                                  Joseph V. Taranto

Executive Vice PresidentLexaria Bioscience Corp.: Exhibit 10.1 - Filed by newsfilecorp.com

LEXARIA BIOSCIENCE CORP. 

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT 

INSTRUCTIONS TO PURCHASER 

	1. 	
      ALL purchasers must complete ALL the information
      in the boxes on Page 3 and sign where indicated.

	 	 
	2. 	
      ALL purchasers must complete and sign the "Risk
      Acknowledgement Form" on Page 18 UNLESS you are subscribing
      through a person registered as a broker or an exempt market dealer (as
      defined in National Instrument 31-103 – Registration Requirements and
      Exemptions).

	 	 
	3. 	
      If you are an Existing Security Holder (as
      hereinafter defined) and NOT an accredited investor and wish to use
      the Existing Security Holder Exemption (as hereinafter defined), then
      complete and sign the Existing Security Holder form on Page 7.
      The purpose of the form is to determine whether you meet the standards
      for participation in a private placement pursuant to the Existing Security
      Holder Exemption.

	 	 
	4. 	
      If you are an Accredited Investor in any
      jurisdiction, you must complete Exhibit A (Pages 11 and
      12) and sign page 12, AND:

	 	a. 	
      If you are a purchaser resident in a province of
      Canada and an accredited investor, you must complete pages
      8-11 and sign the Canadian Accredited Investor Status Certificate page
      11 of this Subscription Agreement.

	 	 	 
	 		
      OR:

	 	 	 
	 	b. 	
      If you are a "U.S. Purchaser" and an accredited
      investor, you must complete pages 14-17 and sign on page 17 of this
      Subscription Agreement. A "U.S. Purchaser" is (a) any "U.S. person" as
      defined in Regulation S under United States federal securities laws, (b)
      any person purchasing securities on behalf of any "U.S. Person" or any
      person in the United States, (c) any person that receives or received an
      offer of the securities while in the United States, (d) any person that is
      in the United States at the time the purchaser’s buy order was made or
      this subscription agreement was executed or delivered. "U.S. person"
      includes but is not limited to (i) any natural person resident in the
      United States; (ii) any partnership or corporation organized or
      incorporated under the laws of the United States; (iii) any partnership or
      corporation organized outside the United States by a U.S. person
      principally for the purpose of investing in securities not registered
      under the U.S. Securities Act of 1933, unless it is organized or
      incorporated, and owned, by accredited investors who are not natural
      persons, estates or trusts; (iv) any estate or trust of which any executor
      or administrator or trustee is a U.S. person.

	5. 	
      Page 19 is for future reference only regarding removal of
      restricted legends from stock certificates. Not to be completed at this
      time.

	 	 
	6. 	
      Page 31 provides instructions for wiring funds directly
      to Lexaria Corp. All payments must be in US dollars
only.

CLOSING DATE IS JULY 26, 2016 – Your funds must be received
PRIOR to that date. 

1 

THIS PAGE INTENTIONALLY BLANK

2 

PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT - PAGE 3 

	TO: 	LEXARIA BIOSCIENCE CORP., (the
      “Issuer”), of 950 – 1130 West Pender Street, Vancouver, BC V6E 4A4
    

Subject and pursuant to the terms set out in the Terms on pages
4 to 6, the General Provisions on pages 20 to 30, and the other appendices,
acknowledgements, provisions and forms attached which are hereby incorporated by
reference, the undersigned purchaser (the “Purchaser”) hereby irrevocably
subscribes for, and on Closing will purchase from the Issuer, the following
securities at the following price: 

	Number of Units purchased (minimum 160,000
      Units):
      _______________________________________________________Units
      	
	 	 
	US$0.06 Unit for a total purchase price of US$
      (minimum CDN$10,600): US$
  _____________________________________
	 
	The Purchaser owns, directly or indirectly, the
      following securities of the Issuer: 
		______________________________________________________________	  
	 	 	 
	[Check if
      applicable] 	The Purchaser
      is: [   ] an insider of the Issuer
      [   ] a member of a Pro
      Group	
		[   ] a director, officer or Promoter of the
      Issuer  	 

*The
common shares comprising the Units will be issued in electronic form using the
direct registration system ("DRS") of the Issuer's transfer agent and on Closing
the Purchaser will receive only a DRS Statement. If the Purchaser wishes to
receive a physical share certificate rather than a DRS Statement,please
indicate here with a checkmark [  
]

The Purchaser directs the Issuer to issue, register and deliver
the certificates or DRS Statements, as applicable, representing/evidencing the
Purchased Securities as follows: 

	REGISTRATION INSTRUCTIONS 	 	DELIVERY INSTRUCTIONS 
	 	 	 
	 	 	 
	Name to appear on
      certificate 	 	Name
      and account reference, if applicable 
	 	 	 
	Account reference if
      applicable 	 	Contact
      name 
	 	 	 
	Address 	 	Address
    
	 	 	 
	 	 	 
	  	 	Telephone Number 

	
      EXECUTED by the Purchaser this _______ day of
      _____________, 2016. By executing this Subscription Agreement, the
      Purchaser certifies that the Purchaser and any beneficial purchaser
      for whom the Purchaser is acting is resident in the jurisdiction shown as
      the “Address of Purchaser”. 

	  	 
	EXECUTION BY PURCHASER: 
	Accepted this day of
      ________________, 2016	 	X 
	  	  	Signature of individual (if Purchaser is an individual)
	LEXARIA
      BIOSCIENCE CORP. 	 	X 
	Per: 	  	Authorized signatory (if Purchaser is not an
      individual) 
	 
    	  	  
	Authorized signatory
    		Name of
      Purchaser and/or authorized signatory (please
      print) 
	  	  	  
	  	  	Name of
      beneficial purchaser for whom Purchaser is 
	  	  	contracting (if applicable) (please print)
      
	  	  	  
	  	  	Address
      of Purchaser (residence) 
	  	  	  
	  	  	Address
      of beneficial purchaser (if applicable) 
	  	  	  
	  	 
    	Telephone number and e-mail address

The Issuer accepts the subscription as set forth above on the
terms and conditions contained in this Subscription Agreement. 

3 

TERMS 

	Reference date of this Subscription Agreement
    	July 5, 2016 (the “Agreement Date”)
  

The Offering 

	The Issuer 	
      LEXARIA BIOSCIENCE CORP. 

	  	
      

	Offering 	
      The offering (the “Offering”) consists of an aggregate of
      up to 5,000,000 units of the Issuer (the “Units”) 

	  	
      

	Purchased Securities 	
      The “Purchased Securities” are Units. Each Unit consists
      of one previously unissued common share, as presently constituted (a
      “Share”) and one (1) non-transferable common share purchase warrant (each
      whole warrant, a “Warrant”) of the Issuer. One Warrant will entitle the
      holder, on exercise, to purchase one additional common share of the Issuer
      (a “Warrant Share”) at a price of US$0.14 per Warrant Share at any time
      until the close of business on the day which is 24 months from the date of
      issue of the Warrant. 

	  	
      

	Total amount 	
      Up to US $300,000 

	  	
      

	Price 	
      US$0.06 per Unit 

	  	
      

	Fees 	
      The Issuer, in its sole discretion, may pay finder's fees
      to certain arm's length parties (the "Finders") in connection with the
      completion of the Offering and in accordance with application securities
      laws. Such finder's fee will be up to 8% of the aggregate subscription
      proceeds realized from the sale of the Units by the respective Finder,
      payable in cash only, and Broker’s warrants up to 8% of the aggregate
      Units sold by the applicable Finder. Each broker’s warrant will be
      exercisable into one single common Share (a "Warrant Share") at a price of
      US$0.14 per Warrant Share for a period of twenty-four (24) months
      following closing of the Offering. 

	  	
      

	Warrants 	
      The Warrants will be issued and registered in the name of
      the purchasers or their nominees. The Warrants will be non-transferable
      and subject to resale restrictions and legends. 

	  	
      

		
      The certificates representing the Warrants will, among
      other things, include provisions for the appropriate adjustment in the
      class, number and price of the Warrant Shares issued upon exercise of the
      Warrants upon the occurrence of certain events, including any subdivision,
      consolidation or reclassification of the Issuer’s common shares, the
      payment of stock dividends and the amalgamation of the Issuer. 

	  	
      

	Selling Jurisdictions 	
      The Units may be sold in the provinces of Canada and in
      certain overseas jurisdictions as the Issuer may determine and in the
      United States in accordance with available exemptions (the "Selling
      Jurisdictions"). 

	  	
      

	Exemptions 	
      The Offering will be made in accordance with the
      following exemptions from the prospectus requirements:
  

	 	(a) 	
      the Existing Security Holder Exemption enacted in various
      Canadian jurisdictions

	 	 	 
	 	(b) 	
      the Accredited Investor Exemption found in section 2.3 of
      National Instrument 45-106 Prospectus and Registration
      Exemptions;

4 

	 	(c) 	
      the “minimum amount investment ($150,000)” exemption
      found in section 2.10 of National Instrument 45-106 Prospectus and
      Registration Exemptions which exemption is only available to
      non-individual subscribers; and

	 	 	 
		(d) 	
      the
      Investment Dealer Exemption enacted in certain Canadian
      jurisdictions 
      

	 	 	 
	 	(e)	the "offshore" exemption
      found in BC Instrument 72- 503 Distributions outside British
      Columbia; and
	 	 	 
	 	(f) 	
      in the United States, Rule 506 of Regulation D and/or
      section 4(2) of the United States Securities Act of 1933, as
      amended.

	Resale restrictions and legends 	
      The Purchased Securities will be subject to a hold period
      that starts to run on Closing. The Purchaser acknowledges that the
      certificates or DRS Statements, as applicable, representing/evidencing the
      Purchased Securities will bear legends in substantially the following
      form: 

	  	
      

		
      “UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE
      HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE NOVEMBER 27,
      2016 IN SOME JURISDICTIONS AND JANUARY 27, 2017 IN SOME JURISDICTIONS.”
      

	  	
      

		
      “THE SECURITIES REPRESENTED HEREBY HAVE BEEN OFFERED IN
      AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED
      HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF
      1933, AS AMENDED (THE "1933 ACT"). 

	  	
      

		
      NONE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN
      REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND,
      UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY,
      IN THE UNITED STATES (AS DEFINED HEREIN) OR TO U.S. PERSONS EXCEPT IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT,
      PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR
      PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT
      TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN
      ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION, HEDGING
      TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED UNLESS IN
      COMPLIANCE WITH THE 1933 ACT. "UNITED STATES" AND "U.S. PERSON" ARE AS
      DEFINED BY REGULATION S UNDER THE 1933 ACT. DELIVERY OF THIS CERTIFICATE
      MAY NOT CONSTITUTE GOOD DELIVERY IN SETTLEMENT OF TRANSACTIONS ON STOCK
      EXCHNAGES IN CANADA.” 

	  	
      

		
      Purchasers are advised to consult with their own legal
      counsel or advisors to determine the resale restrictions that may be
      applicable to them. Certificates representing Purchased Securities issued
      to U.S. Purchasers will bear additional legends as set forth in the
      "Certification of US Purchaser

5 

	Closing Date 	Payment to the Issuer for, and delivery of, the
      Units is scheduled to occur on AUGUST 30, 2016 or on such other
      date or dates as may be determined by the Issuer (the “Closing Date”).
      
	  	  
	Additional definitions 	In the Subscription Agreement, the following
      words have the following meanings unless otherwise indicated:
  

	 	(a) 	
      “Purchased Securities” means the Units purchased under
      this Subscription Agreement;

	 	 	 
	 	(b) 	
      “Securities” means the Shares, the Warrants and the
      Warrant Shares;

	 	 	 
	 	(c) 	
      “Warrants”, as defined above, includes the certificates
      representing the Warrants.

The Issuer 

	Jurisdiction of organization 	The Issuer is incorporated under the laws of
      the State of Nevada 
	  	  
	Stock exchange listings 	The common shares of the Issuer are listed on
      the Canadian Securities Exchange (the “Exchange”) and available to be
      traded on the US OTC Bulletin Board. 

End of Terms 

6 

EXISTING SECURITY HOLDER CONFIRMATION 

CANADIAN RESIDENTS (EXCLUDING NEWFOUNDLAND) 

Capitalized terms used in this Schedule C and defined in the
Subscription Agreement to which this Schedule C is attached have the meaning
defined in the Subscription Agreement unless otherwise defined herein. 

The undersigned or, if applicable, the disclosed purchaser
through the undersigned acting as its agent, hereby represents, warrants and
certifies to Lexaria Bioscience that he, she or it is purchasing the Units as
principal and is an Existing Security Holder by virtue of the fact that the
Subscriber, or if applicable, the disclosed purchaser, on or before the Record
Date, acquired and continues to hold, common shares of Lexaria Bioscience. 

The undersigned or, if applicable, the disclosed purchaser
through the undersigned acting as its agent, also represents, warrants and
certifies that: [initial or place a checkmark above the line to the left of
each applicable item]

	_____	(a) 	he, she or it has obtained advice regarding the
      suitability of the investment and, if he, she or it is resident in a
      jurisdiction of Canada, that advice had been obtained from a person that
      is registered as an investment dealer in the jurisdiction; or 
	 	  	  
	_____	(b) 	the aggregate acquisition cost to him, her or
      it for the Shares to be purchased under the Agreement, when combined with
      the acquisition cost to him, her or it for the purchase of any other
      security from the Corporation under the Existing Security Holder Exception
      in the last 12 months, does not exceed CDN$15,000 (approx US$11,700).
      

The Subscriber has executed this certificate as of the ______
day of ____________, 2016. 

	If a trust, partnership or other entity: 	If an individual: 

	Name of Entity
    	 	Signature 
	 	 	 
	Type of Entity 	 	Name of Individual 
	 	 	 
	Signature of person Signing 	 	  
	 	 	 
	Title of person Signing 	 	  

7 

NON-USA ACCREDITED INVESTOR STATUS CERTIFICATE - PAGE 8

The categories listed herein contain certain specifically
defined terms. If you are unsure as to the meanings of those terms, or are
unsure as to the applicability of any category below, please contact your broker
and/or legal advisor before completing this certificate.

In connection with the purchase by the undersigned
Subscriber of the Subscriber’s Units, the Subscriber, on its own behalf and on
behalf of each of the beneficial purchasers for whom the Subscriber is acting,
hereby represents, warrants, covenants and certifies to Lexaria Bioscience Corp.
(the "Corporation") (and acknowledges that the Corporation and its counsel are
relying thereon) that: 

	 	(a) 	
      the Subscriber, or each of the beneficial purchasers for
      whom the Subscriber is acting, is purchasing the Subscriber’s Units as
      principal for its own account and not for the benefit of any other
      person;

	 	 	 
	 	(b) 	
      the Subscriber, or each of the beneficial purchasers for
      whom the Subscriber is acting, is an “accredited investor” within the
      meaning of NI 45-106 on the basis that the undersigned fits within the
      category of an “accredited investor” reproduced below beside which the
      undersigned has indicated the undersigned belongs to such
  category;

	 	 	 
	 	(c) 	
      upon execution of this Certificate, including if
      applicable the Exhibit attached hereto, by the Subscriber, this
      Certificate shall be incorporated into and form a part of the Subscription
      Agreement.

(PLEASE CHECK THE BOX OF THE APPLICABLE CATEGORY OF
ACCREDITED INVESTOR) 

	[   ]	(a) 	
      except in Ontario, a Canadian financial institution, or a
      Schedule III bank; 

	 	  	
       

	[   ]	(a.1) 	
      in Ontario, a financial institution that is (i) a bank
      listed in Schedule I, II or III of the Bank Act (Canada); (ii) an
      association to which the Cooperative Credit Associations Act
      (Canada) applies or a central cooperative credit society for which an
      order has been made under subsection 473(1) of the Securities Act
      (Ontario); or (iii) a loan corporation, trust company, trust
      corporation, insurance company, treasury branch, credit union, caisse
      populaire, financial services cooperative or credit union league or
      federation that is authorized by a statute of Canada or Ontario to carry
      on business in Canada or Ontario, as the case may be; 

	 	  	
       

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

	 	  	
       

	[   ]	(c) 	
      a subsidiary of any person or company referred to in
      paragraphs (a), (a.1) or (b), if the person or company owns all of the
      voting securities of the subsidiary, except the voting securities required
      by law to be owned by directors of that subsidiary; 

	 	  	
       

	[   ]	(d) 	
      a person or company registered under the securities
      legislation of a jurisdiction (province or territory) of Canada as an
      adviser or dealer, except as otherwise prescribed by the regulations;
    

	 	  	
       

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

	 	  	
       

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

8 

	[   ]	(f) 	
      the Government of Canada or a jurisdiction (province or
      territory) of Canada, or any crown corporation, agency or wholly owned
      entity of the Government of Canada or a jurisdiction (province or
      territory) of Canada; 

	 	  	
       

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

	 	  	
       

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

	 	  	
       

	[   ]	(i) 	
      a pension fund that is regulated by either the Office of
      the Superintendent of Financial Institutions (Canada), a pension
      commission or similar regulatory authority of a jurisdiction (province or
      territory) of Canada; 

	 	  	
       

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

	 	  	
       

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

	 	  	
       

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

	 	  	
       

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

	 	  	
       

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

	 	  	
       

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

	 	  	
       

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

	 	  	
       

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

	 	  	
       

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

	 	  	
       

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

9 

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

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

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

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

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

For the purposes hereof, the following definitions are included
for convenience: 

	(a) 	
      “bank” means a bank named in Schedule I or II of the
      Bank Act (Canada);

	 	 
	(b) 	
      “Canadian financial institution” means (i) an association
      governed by the Cooperative Credit Associations Act (Canada) or a
      central cooperative credit society for which an order has been made under
      section 473(1) of that Act, or (ii) a bank, loan corporation, trust
      company, trust corporation, insurance company, treasury branch, credit
      union, caisse populaire, financial services cooperative, or league that,
      in each case, is authorized by an enactment of Canada or a jurisdiction of
      Canada to carry on business in Canada or a jurisdiction of
  Canada;

	 	 
	(c) 	
      “company” means any corporation, incorporated
      association, incorporated syndicate or other incorporated
    organization;

	 	 
	(d) 	
      “financial assets” means (i) cash, (ii) securities, or
      (iii) a contract of insurance, a deposit or an evidence of a deposit that
      is not a security for the purposes of securities legislation;

	 	 
	(e) 	
      “fully managed account” means an account of a client for
      which a person makes the investment decisions if that person has full
      discretion to trade in securities for the account without requiring the
      client’s express consent to a transaction;

	 	 
	(f) 	
      “investment fund” has the same meaning as in National
      Instrument 81-106 Investment Fund Continuous Disclosure;

	 	 
	(g) 	
      “person” includes

(i)      an
individual, 

(ii)     a
corporation, 

(iii)    a partnership,
trust, fund and an association, syndicate, organization or other organized group
of persons whether incorporated or not, and 

(iv)     an
individual or other person in that person’s capacity as a trustee, executor,
administrator or personal or other legal representative. 

10 

	(h) 	“related liabilities” means (i) liabilities incurred or assumed for
      the purpose of financing the acquisition or ownership of financial assets,
      or (ii) liabilities that are secured by financial assets; 
	 	 
	(i) 	“Schedule III bank” means an authorized foreign bank named in Schedule
      III of the Bank Act (Canada); 
	 	 
	(j) 	“spouse” means, an individual who, (i) is married to another
      individual and is not living separate and apart within the meaning of the
      Divorce Act (Canada), from the other individual, (ii) is living
      with another individual in a marriage-like relationship, including a
      marriage-like relationship between individuals of the same gender, or
      (iii) in Alberta, is an individual referred to in paragraph (i) or (ii),
      or is an adult interdependent partner within the meaning of the Adult
      Interdependent Relationships Act (Alberta); and 
	 	 
	(k) 	“subsidiary” means an issuer that is controlled directly or indirectly
      by another issuer and includes a subsidiary of that subsidiary.
  

In NI 45-106 a person or company is considered to be an
affiliated entity of another person or company if one is a subsidiary entity of
the other, or if both are subsidiary entities of the same person or company, or
if each of them is controlled by the same person or company. 

In NI 45-106 a person (first person) is considered to control
another person (second person) if (a) the first person, directly or indirectly,
beneficially owns or exercises control or direction over securities of the
second person carrying votes which, if exercised, would entitle the first person
to elect a majority of the directors of the second person, unless that first
person holds the voting securities only to secure an obligation, (b) the second
person is a partnership, other than a limited partnership, and the first person
holds more than 50% of the interests of the partnership, or (c) the second
person is a limited partnership and the general partner of the limited
partnership is the first person. 

In NI 45-106 a trust company or trust corporation described in
paragraph (p) above of the definition of “accredited investor” (other than in
respect of a trust company or trust corporation registered under the laws of
Prince Edward Island that is not registered or authorized under the Trust and
Loan Companies Act (Canada) or under comparable legislation in another
jurisdiction of Canada) is deemed to be purchasing as principal. 

In NI 45-106 a person described in paragraph (q) above of the
definition of “accredited investor” is deemed to be purchasing as principal.

The foregoing representations contained in this certificate are
true and accurate as of the date of this certificate and will be true and
accurate as of the Closing Time. If any such representations shall not be true
and accurate prior to the Closing Time, the undersigned shall give immediate
written notice of such fact to the Corporation prior to the Closing Time. 

	 	Dated: 	 	 	Signed: 	 
	 	 	 	 
	 	 	 	 
	 	Witness (If Subscriber is an Individual) 	 	Print the name of Subscriber 
	 	 	 	 
	 	 	 	 
	 	Print Name of Witness 	 	If Subscriber is not an Individual,
    
	 	  	 	print name and title of Authorized
      Signing Officer 

11 

EXHIBIT A - Page 12 

EXHIBIT TO ACCREDITED INVESTOR STATUS CERTIFICATE 

Risk Acknowledgement Form for Individual Accredited
Investors 

WARNING TO INVESTORS 

This investment is risky. Don't invest unless you can afford
to lose all the money you pay for this investment. 

	SECTION 1 TO BE COMPLETED BY THE ISSUER 	  
	1. About your investment 	  
	Type of securities:  Units 	Issuer: Lexaria Bioscience Corp. 
	Purchased from: Lexaria Bioscience Corp. 	  
	SECTIONS 2 TO 4 TO BE COMPLETED BY THE
      SUBSCRIBER 	  

	2. Risk acknowledgement 	  
	 	Your 
	This investment is risky. Initial that you
      understand each of the following: 	Initials 
	Risk of loss - You could lose your entire investment of $ _____________. [Instruction: Insert the
total dollar amount of the investment.] 	
	Liquidity risk - You may not be able to
      sell your investment quickly - or at all. 	  
	Lack of information - You may receive
      little or no information about your investment. 	  
	Lack of advice - You will not receive advice from the salesperson about whether this investment is
suitable for you unless the salesperson is registered. The salesperson is the person who meets with,
or provides information to, you about making this investment. To check whether the salesperson is
registered, go to www.aretheyregistered.ca.. 	
	3. Accredited investor status
	  
	You must meet at least one of the following criteria to be able to make this investment. Initial the
statement that applies to you. (You may initial more than one statement.) The person identified in
section 6 is responsible for ensuring that you meet the definition of accredited investor. That
person, or the salesperson identified in section 5, can help you if you have questions about whether
you meet these criteria. 	Your
initials 
	• 	Your net income before taxes was more than $200,000 in each of the 2 most recent calendar years, and you expect it to be more than $200,000 in the current calendar year. (You can find your net income before taxes on your personal income tax return.)	
	• 	Your net income before taxes combined with your spouse's was more than $300,000 in each of the 2 most recent calendar years, and you expect your combined net income before taxes to be more than $300,000 in the current calendar year.	
	• 	Either alone or with your spouse, you own more than $1 million in cash and securities, after subtracting any debt related to the cash and securities.	
	• 	Either alone or with your spouse, you have net assets worth more than $5 million. (Your net assets are your total assets (including real estate) minus your total debt.)	
	4. Your name and signature 	  
	By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form.

12 

	First and last name (please print):
	Signature: 	Date: 
	SECTION 5 TO BE COMPLETED BY THE
      SALESPERSON 
	5. Salesperson information 
	[Instruction: The salesperson is the person who
      meets with, or provides information to, the Subscriber with respect
      to making this investment. That could include a representative of the
      issuer or selling security holder, a registrant or a person who is
      exempt from the registration requirement.]
	First and last name of
      salesperson (please print): 
	Telephone: 	Email: 
	Name of firm (if registered): 	  
	SECTION 6 TO BE COMPLETED BY THE ISSUER 	  
	6. For more information about this investment 	  
	Lexaria Bioscience Corp.

      950 —1130 West Pender Street

      Vancouver, BC Canada V6E 4A4

      Attention: President or CEO

      Tel: 250.765.6424

      Fax: 604.685.1602

       
	

	For more information about prospectus exemptions, contact your local securities regulator. You can find
      contact information at www.securities-administrators.ca.
    

13 

PROVISIONS APPLICABLE TO A UNITED STATES
PURCHASER

CERTIFICATION OF U.S. PURCHASER - PAGE 14

NOTE: the provisions on this page are
applicable ONLY if the Purchaser is in the United States or is a "U.S. person"
as defined in Regulation S under the United States Securities Act of 1933, as
amended. 

(Capitalized terms not specifically
defined in this Certification have the meaning ascribed to them in the
Subscription Agreement to which this Schedule is attached.) 

In connection with the execution of the
Subscription Agreement to which this Schedule is attached, the undersigned (the
"Purchaser") represents and warrants to the Issuer that: 

	 	1. 	It has such knowledge and experience in financial
      and business matters as to be capable of evaluating the merits and risks
      of an investment in the Securities and it is able to bear the economic
      risk of loss of its entire investment. 
	 	 	 
	 	2. 	The Issuer has provided to it the opportunity to
      ask questions and receive answers concerning the terms and conditions of
      the offering and it has had access to such information concerning the
      Issuer as it has considered necessary or appropriate in connection with
      its investment decision to acquire the Securities. 
	 	 	 
	 	3. 	It is acquiring the Securities for its own
      account, for investment purposes only and not with a view to any resale,
      distribution or other disposition of the Securities in violation of the
      United States securities laws. 
	 	 	 
	 	4. 	It understands the Securities have not been and
      will not be registered under the United States Securities Act of 1933, as
      amended (the "1933 Act") or the securities laws of any state of the United
      States and that the sale contemplated hereby is being made in reliance on
      an exemption from such registration requirements. 
	 	 	 
	 	5. 	If the Purchaser is an individual (that is, a
      natural person and not a corporation, partnership, trust or other entity),
      then it satisfies one or more of the categories indicated below (please
      place an "X" on the appropriate lines): 

	 	____________	A natural person whose
      individual net worth, or joint net worth with that person’s spouse, at the
      date of this Certification exceeds US $1,000,000 excluding the value of
      such person’s primary residence; 
	 	 	  
	 	____________	A natural person who had an
      individual income in excess of US $200,000 in each of the two most recent
      years or joint income with that person’s spouse in excess of US $300,000
      in each of those years and has a reasonable expectation of reaching the
      same income level in the current year; 

	 	6. 	If the Purchaser is a corporation, partnership,
      trust or other entity), then it satisfies one or more of the categories
      indicated below (please place an "X" on the appropriate lines):
  

	 	____________ 	An organization described
      in Section 501(c)(3) of the United States Internal Revenue Code, a
      corporation, a Massachusetts or similar business trust or partnership, not
      formed for the specific purpose of acquiring the Securities, with total
      assets in excess of US $5,000,000; 
	 	 	  
	 	____________ 	A trust that (a) has total
      assets in excess of US $5,000,000, (b) was not formed for the specific
      purpose of acquiring the Securities and (c) is directed in its purchases
      of securities by a person who has such knowledge and experience in
      financial and business matters that he/she is capable of evaluating the
      merits and risks of an investment in the Securities;

14 

	 	____________ 	An investment company
      registered under the Investment Company Act of 1940 or a business
      development company as defined in Section 2(a)(48) of that Act;
  
	 	 	  
	 	____________ 	A Small Business Investment
      Company licensed by the U.S. Small Business Administration under Section
      301(c) or (d) of the Small Business Investment Act of 1958; 
	 	 	  
	 	____________ 	A private business
      development company as defined in Section 202(a)(22) of the Investment
      Advisors Act of 1940; or 
	 	 	  
	 	____________ 	An entity in which all of
      the equity owners satisfy the requirements of one or more of the foregoing
      categories. 

	 	7. 	It has not purchased the Securities as a result of
      any form of general solicitation or general advertising, including
      advertisements, articles, notices or other communications published in any
      newspaper, magazine or similar media or broadcast over radio, internet,
      television or other form of telecommunications, or any seminar or meeting
      whose attendees have been invited by general solicitation or general
      advertising. 
	 	 	 
	 	8. 	If it decides to offer, sell or otherwise transfer
      any of the Securities, it will not offer, sell or otherwise transfer any
      of such Securities directly or indirectly, unless:

	 	(a) 	the sale is to the Issuer; 
	 	 	 
	 	(b) 	the sale is made outside the United States in a
      transaction meeting the requirements of Rule 904 of Regulation S under the
      1933 Act and in compliance with applicable local laws and regulations;
      
	 	 	 
	 	(c) 	the sale is made pursuant to the exemption from
      the registration requirements under the 1933 Act provided by Rule 144
      thereunder and in accordance with any applicable state securities or "blue
      sky" laws; or 
	 	 	 
	 	(d) 	the Securities are sold in a transaction that does
      not require registration under the 1933 Act or any applicable state laws
      and regulations governing the offer and sale of securities; and
  
	 	 	 
	 	(e) 	it has prior to such sale pursuant to subsection
      (c) or (d) furnished to the Issuer an opinion of counsel reasonably
      satisfactory to the Issuer. 

	 	9. 	The certificates representing the Securities (and
      any certificates issued in exchange or substitution for the Securities)
      will bear a legend in substantially the form as follows:
  

"THE SECURITIES
REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES
ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"). THE HOLDER HEREOF, BY
PURCHASING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE COMPANY THAT SUCH
SECURITIES MAY BE OFFERED, SOLD OR OTHERWISE TRANSFERRED ONLY (A) TO THE
COMPANY; (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION
S UNDER THE U.S. SECURITIES ACT OR (C) IN ACCORDANCE WITH THE EXEMPTION FROM
REGISTRATION UNDER THE U.S. SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER, IF
AVAILABLE, AND IN COMPLIANCE WITH ANY APPLICABLE STATE SECURITIES LAWS; OR (D)
IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES
ACT OR ANY APPLICABLE STATE SECURITIES LAWS, AND, IN THE CASE OF PARAGRAPH (C)
OR (D), THE SELLER FURNISHES TO THE CORPORATION AN OPINION OF COUNSEL OF
RECOGNIZED STANDING IN FORM AND SUBSTANCE SATISFACTORY TO THE CORPORATION TO
SUCH EFFECT. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE GOOD DELIVERY IN
SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA." 

15 

Delivery of certificates bearing such a
legend may not constitute "good delivery" in settlement of transactions on
Canadian stock exchanges or over-the-counter markets. If the Issuer is a
"foreign issuer" with no "substantial U.S. market interest" (all within the
meaning of Regulation S under the 1933 Act) at the time of sale, a new
certificate, which will constitute "good delivery", will be made available to
the Purchaser upon provision by the Purchaser of a declaration in the form
attached as Appendix "A" together with such other evidence of the availability
of an exemption as the Issuer or its transfer agent may reasonably require.

Certificates representing Warrants, and all
certificates issued in exchange therefore or in substitution thereof, shall bear
the following legend in substantially the following form: 

"THIS WARRANT AND
THE SECURITIES DELIVERABLE 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 BY OR ON BEHALF OF A "U.S. PERSON" OR A PERSON IN THE
UNITED STATES UNLESS THE WARRANT AND THE UNDERLYING SECURITIES HAVE BEEN
REGISTERED UNDER THE U.S. SECURITIES ACT AND THE APPLICABLE SECURITIES
LEGISLATION OF ANY SUCH STATE OR AN EXEMPTION FROM SUCH REGISTRATION
REQUIREMENTS IS AVAILABLE. "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY
REGULATION S UNDER THE U.S. SECURITIES ACT." 

	 	10. 	It understands and agrees that there may be
      material tax consequences to the Purchaser of an acquisition or
      disposition of the Securities. The Issuer gives no opinion and makes no
      representation with respect to the tax consequences to the Purchaser under
      United States, state, local or foreign tax law of the undersigned’s
      acquisition or disposition of such Securities, in particular, no
      determination has been made whether the Issuer will be a "passive Foreign
      investment company" ("PFIC") within the meaning of Section 1291 of the
      United States Internal Revenue Code. 
	 	 	 
	 	11. 	It understands and agrees that the financial
      statements of the Issuer may have been prepared in accordance with
      Canadian generally accepted accounting principles, which differ in some
      respects from United States generally accepted accounting principles, and
      thus may not be comparable to financial statements of United States
      companies. 
	 	 	 
	 	12. 	It consents to the Issuer making a notation on its
      records or giving instructions to any transfer agent of the Issuer in
      order to implement the restrictions on transfer set forth and described in
      this Certification and the Subscription Agreement. 
	 	 	 
	 	13. 	It is resident in the United States of America,
      its territories and possessions or any state of the United States or the
      District of Columbia (collectively the "United States"), a "U.S. Person"
      as such term is defined in Regulation S of the 1933 Act or was in the
      United States at the time the securities were offered or the Subscription
      Agreement was executed. 
	 	 	 
	 	14. 	It understands that the Securities are "restricted
      securities" under applicable federal securities laws and that the 1933 Act
      and the rules of the SEC provide in substance that the Purchaser may
      dispose of the Securities only pursuant to an effective registration
      statement under the 1933 Act or an exemption therefrom, and, other than as
      set out herein, the Purchaser understands that the Issuer has no
      obligation to register any of the Securities or to take action so as to
      permit sales pursuant to the 1933 Act (including Rule 144 thereunder).
      Accordingly, the Purchaser understands that absent registration, under the
      rules of the SEC, the Purchaser may be required to hold the Securities
      indefinitely or to transfer the Securities in "private placements" which
      are exempt from registration under the 1933 Act, in which event the
      transferee will acquire "restricted securities" subject to the same
      limitations as in the hands of the Purchaser. As a consequence, the
      Purchaser understands that it must bear the economic risks of the
      investment in the Securities for an indefinite period of time.
  
	 	 	 
	 	15. 	It has no intention to distribute, and shall not
      transfer, either directly or indirectly any of the Securities to any
      person within the United States or to U.S. persons, as defined in
      Regulations S (a "US Person") except pursuant to an effective registration
      statement under the 1933 Act, or an exemption therefrom.
  

16 

	 	16. 	It has no intention to distribute, and shall not
      transfer, either directly or indirectly any of the Securities to any
      person within the United States or to U.S. persons, as defined in
      Regulations S (a "US Person") except pursuant to an effective registration
      statement under the 1933 Act, or an exemption therefrom.
  

The statements made in this Certification
are true and accurate to the best of my information and belief and I will
promptly notify the Issuer of any changes in the answers. 

ONLY U.S. PURCHASERS NEED COMPLETE AND
SIGN

Dated _____________________________, 2016

	X 
	Signature of individual (if
      Purchaser is an individual) 
	 
	X 
	Authorized signatory (if Purchaser
      is not an individual) 
	 
      
	Name of Purchaser (please
      print) 
	 
      
	Name of authorized signatory
      (please print) 
	 
      
	Official capacity of authorized
      signatory (please print)

17 

RISK ACKNOWLEDGEMENT FORM - PAGE 18 

Risk Acknowledgement under BCI
32-513
Registration exemption for trades

in connection with certain prospectus-exempt
distributions 

Name of Issuer: LEXARIA BIOSCIENCE CORP. 

Name of Seller:
_______________________________________

I acknowledge that 

		o 	the person selling me these securities is not
      registered with a securities regulatory authority and is prohibited from
      telling me that this investment is suitable for me; 
	 	o 	the person selling me these securities does not
      act for me; 
	 	o 	this is a risky investment and I could lose all
      my money; 
		o 	the person selling me these securities has not
      provided financial services to me other than in connection with a
      Prospectus-Exempt Distribution; 
	 	o 	the person selling me these securities does not
      hold or have access to my assets; 
	 	o 	I am investing entirely at my own risk.
  

	Date 
	 
	 
	Signature of Subscriber 
	 
	 
	Print name of Subscriber 
	 
	 
	Name of salesperson acting on behalf of seller 
	 
	Sign two copies of this document. Keep one copy for your
      records. 

 

National Instrument 45-106 Prospectus Exemptions
may require you to sign an additional risk acknowledgement form. If
you want advice about the merits of this investment and whether these securities
are a suitable investment for you, contact a registered adviser or
dealer.

18 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

Declaration for removal of legend - Page 19 

(To Be Completed at Time of Future Legend Removal) 

	TO: 	Computershare as registrar and transfer
      agent for the common shares of LEXARIA BIOSCIENCE CORP. (the
      “Company”). 

The undersigned (A) acknowledges that the sale of the common
shares represented by certificate number _______________, to which this
declaration relates, is being made in reliance on Rule 904 of Regulation S under
the United States Securities Act of 1933, as amended (the “1933 Act”), and (B)
certifies that (1) the undersigned is not an “affiliate” (as defined in Rule 405
under the 1933 Act) of the Company; (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 a designated offshore securities market within the meaning of Rule 902(b)
under the 1933 Act, 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 person acting on its behalf engaged in
any directed selling efforts in connection with the offer and sale of such
securities; and (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 that term is defined in Rule 144(a)(3) under the 1933 Act); (5)
the seller does not intend to replace such securities with fungible unrestricted
securities; and (6) the contemplated sale is 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 1933
Act. Terms used herein have the meanings given to them by Regulation S under the
1933 Act. 

By: __________________________________Dated:
____________________________ 

Signature 

Name (please print) 

Affirmation by Seller’s Broker-Dealer 

We have read the foregoing representations of our customer,
_________________________ (the “Seller”) dated _______________________, with
regard to the sale, for such Seller’s account, of the common shares represented
by certificate number ______________of the Company described therein, and we
hereby affirm that, to the best of our knowledge and belief, the facts set forth
therein are full, true and correct. 

__________________________________________ 

Name of Firm 

By: _______________________________________

Authorized
officer 

Date: _____________________________________

19 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

GENERAL PROVISIONS 

1      DEFINITIONS

1.1      In the Subscription Agreement
(including the first (cover) page, the Terms on pages 4 to 6, the General
Provisions on pages 7 to 5 and the other appendices, acknowledgements,
provisions and forms incorporated by reference), the following words have the
following meanings unless otherwise indicated: 

Regulation 45-513, Rule 45-501, Blanket Order 45-504, Blanket
Order 45-525, Blanket Order 45-511 and Blanket Order 45-502;
	 	(a) 	“1933 Act” means the United States Securities Act of 1933, as
  amended; 
	 	 	 
	 	(b) 	“Accredited Investor Exemption” means the exemption to the prospectus
      requirements contained in section 2.3 of National Instrument 45-106
      Prospectus and Registration Exemptions; 
	 	 	 
	 	(c) 	“Applicable Legislation” means, as applicable, the securities laws,
      regulations, rules, rulings and orders in the Selling Jurisdictions in
      Canada and in jurisdictions where the Issuer is a reporting issuer and all
      applicable administrative policy statements issued by the securities
      regulatory authorities in each of the Selling Jurisdictions in Canada and
      in jurisdictions where the Issuer is a reporting issuer together with the
      applicable rules and policies of the Exchange; “BCI 45-534” means BC
      Instrument 45-534 Exemption from Prospectus Requirement for Certain
      Trades to Existing Security Holders of the British Columbia Securities
      Commission; 
	 	 	 
	 	(d) 	“Blanket Order 45-501” means The Manitoba Securities Commission
      Blanket Order 45-501 
	 	 	 
	 		Exemption from prospectus requirement for certain trades to
      existing security holders; 
	 	 	 
	 	(e) 	"Blanket Order 45-502” means Northwest Territories Blanket Order
      45-502 Exemption from Prospectus Requirement for Certain Trades to
      Existing Security Holders; 
	 	 	 
	 	(f) 	“Blanket Order 45-505” means New Brunswick Financial and Consumer
      Services Commission Blanket Order 45-505 Prospectus Exemption for
      Distribution to Existing Security Holders; 
	 	 	 
	 	(g) 	“Blanket Order 45-511” means Prince Edward Island Office of the
      Superintendent of Securities Blanket Order 45-511 Exemption from
      prospectus requirement for certain trades to existing security holders;
      
	 	 	 
	 	(h) 	“Blanket Order 45-525” means Nova Scotia Securities Commission Blanket
      Order 45-525 
	 	 	 
	 		Exemption from Prospectus Requirements for Certain Trades to
      Existing Security Holders; 
	 	 	 
	 	(i) 	“Closing” means the completion of the sale and purchase of the
      Purchased Securities; 
	 	 	 
	 	(j) 	“Closing Date” has the meaning assigned in the Terms; 
	 	 	 
	 	(k) 	“Commissions” means the securities regulatory authorities in each of
      the Selling Jurisdictions in Canada and in jurisdictions where the Issuer
      is a reporting issuer; 
	 	 	 
	 	(l) 	“Exchange” has the meaning assigned in the Terms; 
	 	 	 
	 	(m) 	“Existing Security Holder” means a person resident in British
      Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick,
      Nova Scotia, Prince Edward Island or the Northwest Territories and has on
      or before the Record Date, acquired and continues to hold, one or more
      common shares of the Issuer; 
	 	 	 
	 	(n) 	“Existing Security Holder Exemption” means the exemption to the
      prospectus requirements available to residents of British Columbia,
      Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova
      Scotia, Prince Edward Island and Northwest Territories and provided in, as
      applicable, BCI 45-534, Rule 45-513, General Order 45-926, Blanket Order
45-501, 

20 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

	 	(o) 	“Final Closing” means the last closing under the Private Placement;
  
	 	 	 
	 	(p) 	“General Provisions” means those portions of the Subscription
      Agreement headed “General Provisions” and contained on pages 20 to 30;
  
	 	 	 
	 	(q) 	“General Order 45-926” means Saskatchewan’s Director of the Security
      Division’s General Order 45-926 -Exemption from prospectus requirement
      for certain trades to existing security holders; 
	 	 	 
	 	(r) 	"Investment Dealer Exemption" means the exemption to the prospectus
      requirements available to residents of British Columbia, Alberta,
      Saskatchewan, Manitoba and New Brunswick and provided in, as applicable,
      BCI 45-536, Rule 45-516, General Order 45-930, Blanket Order 45- 503,
      Regulation 45-513 and Blanket Order 45-508; 
	 	 	 
	 	(s) 	“Personal Information” means any information about an identifiable
      individual, and includes information provided by the Purchaser in this
      Subscription Agreement; 
	 	 	 
	 	(t) 	“Private Placement” means the offering of the Purchased Securities on
      the terms and conditions of the Agency Agreement and this Subscription
      Agreement; 
	 	 	 
	 	(u) 	“Purchased Securities” has the meaning assigned in the Terms; 
	 	 	 
	 	(v) 	“Record Date” means July 5, 2016; 
	 	 	 
	 	(w) 	“Regulation S” means Regulation S promulgated under the 1933 Act;
  
	 	 	 
	 	(x) 	“Regulation 45-513” means Autorité des marchés financiers Regulation
      45-513 respecting 
	 	 	 
	 		Prospectus Exemption for Distribution to Existing Security
      Holders; 
	 	 	 
	 	(y) 	“Regulatory Authorities” means the Commissions and the Exchange;

	 	 	 
	 	(z) 	“Rule 45-501” means Ontario Securities Commission Rule 45-501 Ontario
      Prospectus and Registration Exemptions; 
	 	 	 
	 	(aa) 	“Rule 45-513” means Alberta Securities Commission Rule 45-513
      Prospectus Exemption for Distribution to Existing Security Holders;
    
	 	 	 
	 	(bb) 	“Securities” has the meaning assigned in the Terms; 
	 	 	 
	 	(cc) 	“Selling Jurisdictions” has the meaning assigned in the Terms; 
	 	 	 
	 	(dd) 	“Subscription Agreement” means the first (cover) page, the Terms on
      pages 4 to 6, the General Provisions on pages 20 to 30 and the other
      appendices, acknowledgements, provisions and forms incorporated by
      reference; 
	 	 	 
	 	(ee) 	“Terms” means those portions of the Subscription Agreement headed
      “Terms” and contained on pages 4 to 6; and 

1.2      In the Subscription
Agreement, the following terms have the meanings defined in Regulation S: “U.S.
Person” and “United States”. 

1.3      In the Subscription
Agreement, unless otherwise specified, currencies are indicated in Canadian
dollars.

21 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

1.4      In the Subscription
Agreement, other words and phrases that are capitalized have the meaning
assigned in the Subscription Agreement. 

2     
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 

2.1      Acknowledgements concerning
the Private Placement 

The Purchaser acknowledges that: 

	 	(a) 	no securities commission or similar regulatory authority has reviewed
      or passed on the merits of the Securities; 
	 	 	 
	 	(b) 	there is no government or other insurance covering the Securities;
  
	 	 	 
	 	(c) 	there are risks associated with the purchase of the Securities and the
      Purchaser is knowledgeable or experienced in business and financial
      matters and is capable of evaluating the merits and risks of an investment
      in the Purchased Securities and is capable of bearing the economic risk of
      the investments; 
	 	 	 
	 	(d) 	there are restrictions on the Purchaser’s ability to resell the
      Securities and it is the responsibility of the Purchaser to find out what
      those restrictions are and to comply with them before selling the
      Securities; 
	 	 	 
	 	(e) 	the Issuer has advised the Purchaser that the Issuer is relying on an
      exemption from the requirements to provide the Purchaser with a prospectus
      and to sell securities through a person registered to sell securities
      under the Applicable Legislation and, as a consequence of acquiring
      securities pursuant to this exemption, certain protections, rights and
      remedies provided by the Applicable Legislation, including, in most
      circumstances, statutory rights of rescission or damages, will not be
      available to the Purchaser; 
	 	 	 
	 	(f) 	no prospectus has been or is intended to be filed by the Issuer with
      the Commissions in connection with the issuance of the Purchased
      Securities, the issuance is intended to be exempted from the prospectus
      and registration requirements of the Applicable Legislation and as a
      consequence of acquiring the Purchased Securities pursuant to these
      exemptions: 

	 	(i)  	the Purchaser is restricted from using most of the civil remedies
      available under the Applicable Legislation; 
	 	 	 
	 	(ii)	the Purchaser may not receive information that would otherwise be
      required to be provided to the Purchaser under the Applicable Legislation;
      and 
	 	 	 
	 	(iii) 	the Issuer is relieved from certain obligations that
      would otherwise apply under the Applicable
Legislation; 

	 	(g) 	the Securities have not been registered under the 1933 Act and may not
      be offered or sold in the United States unless registered under the 1933
      Act and the securities laws of all applicable states of the United States
      or an exemption from such registration requirements is available, and the
      Issuer has no obligation or present intention of filing a registration
      statement under the 1933 Act in respect of the Purchased Securities or any
      of the Securities; 
	 	 	 
	 	(h) 	the Purchaser understands and agrees that offers and sales of any of
      the Securities prior to the expiration of a period of six months after the
      date of the issuance of the Securities (the six month period hereinafter
      referred to as the “Distribution Compliance Period”) shall only be
      made in compliance with the safe harbor provisions set forth in Regulation
      S, pursuant to the registration provisions of the 1933 Act or an exemption
      therefrom, and that all offers and sales after the Distribution Compliance
      Period shall be made only in compliance with the registration
  provisions of the 1933 Act or an exemption therefrom and in
each case only in accordance with applicable state securities laws; and 

22 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

	 	(i) 	the proceeds received by the Issuer may not be sufficient to
      accomplish its business objectives, given its working capital
      requirements, acquisition costs, possible rescission of previous private
      placements, and ongoing compliance and regulatory costs; 
	 	 	 
	 	(j) 	the Purchaser acknowledges that the Issuer’s counsel is acting as
      counsel to the Issuer and not as counsel to the Purchaser.

2.2      Representations by all
Purchasers 

The Purchaser represents and warrants to the Issuer that, as at
the Agreement Date and as at the Closing Date: 

	 	(a) 	if the Purchaser is a resident of Canada, the Purchaser complies with
      one of the following: 

	 	
      (i) 
	the Purchaser is purchasing as principal or is deemed to be purchasing
      as principal in accordance with Applicable Legislation and meets the
      definition of “accredited investor” as such term is defined under National
      Instrument 45-106 Prospectus and Registration Exemptions and has
      completed and signed the Accredited Investor Status Certificate forming
      part of this Subscription Agreement; or 
	 	
       
	 
	 	
      (ii) 
	the Purchaser is not an individual and is purchasing as principal and
      has purchased that number of Purchased Securities having an acquisition
      cost to the Purchaser of not less than $150,000 to be paid in cash on the
      Closing Date; or 
	 	
       
	 
	 	
      (iii) 
	if the Purchaser is a resident of a province or territory other than
      Newfoundland, the Purchaser was a shareholder of record of the Issuer as
      at the Record Date and at the date hereof continues to be a shareholder,
      and has either received advice regarding the suitability of this
      investment from a registered investment dealer in the jurisdiction of
      their residence, or is purchasing Purchased Securities for an aggregate
      acquisition of no more than $15,000; 

	 	(b) 	the Purchaser is not a person created or used solely to purchase or
      hold securities in order to comply with an exemption from the prospectus
      requirements of Applicable Legislation and if the Purchaser is not an
      individual, it pre-existed the Offering and has a bona fide purpose other
      than investment in the Purchased Securities; 
	 	 	 
	 	(c) 	in the case of the purchase by the Purchaser of the Purchased
      Securities as agent or trustee for any principal, the Purchaser is the
      duly authorized trustee or agent of such beneficial purchaser with due and
      proper power and authority to execute and deliver, on behalf of each such
      beneficial purchaser, this Subscription Agreement and all other
      documentation in connection with the purchase of the Purchased Securities
      hereunder, to agree to the terms and conditions herein and therein set out
      and to make the representations, warranties, acknowledgements and
      covenants herein and therein contained, all as if each such beneficial
      purchaser were the Purchaser and is subscribing as principal for its own
      account and not for the benefit of any other person for investment only
      and not for resale and the Purchaser’s actions as trustee or agent are in
      compliance with applicable law and the Purchaser and each beneficial
      purchaser acknowledges that the Issuer may be required by law to disclose
      to certain regulatory authorities the identity of each beneficial
      purchaser of Purchased Securities for whom it may be acting; 
	 	 	 
	 	(d) 	the Purchaser and any beneficial purchaser for whom it is acting is
      resident in the jurisdiction set out on the execution page of this
      Subscription Agreement, such address was not created and is not used
      solely for the purpose of acquiring the Purchased Securities and the
      Purchaser was solicited to purchase in such jurisdiction;

23 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

	 	(e) 	the Purchaser has properly completed, executed and delivered the
      applicable form(s) set forth on the cover page of this Agreement and such
      forms contain information about the Purchaser that is true and accurate as
      of the date of signing and will be true and correct as at the Closing
      Date; 
	 	 	 
	 	(f) 	the Purchaser has not received, nor has the Purchaser requested, nor
      does the Purchaser have any need to receive, any offering memorandum, or
      any other document describing the business and affairs of the Issuer in
      order to assist the Purchaser in making an investment decision in respect
      of the Purchased Securities and the Purchaser has not become aware of any
      advertisement in printed media of general and regular paid circulation,
      radio or television with respect to the distribution of the Purchased
      Securities; 
	 	 	 
	 	(g) 	no person has made to the Purchaser any written or oral
      representations: 

	 	
      (i) 
	that any person will resell or repurchase the Securities; 
	 	
       
	 
	 	
      (ii) 
	that any person will refund the purchase price of the Purchased
      Securities; 
	 	
       
	 
	 	
      (iii) 
	as to the future price or value of any of the Securities; or 
	 	
       
	 
	 	
      (iv) 
	that any of the Securities will be listed and posted for trading on a
      stock exchange or that application has been made to list and post any of
      the Securities for trading on any stock exchange other than the Shares and
      Warrant Shares on the Exchange; 

	 	(h) 	if the Purchaser is: 

	 	
      (i) 
	a corporation, the Purchaser is duly incorporated and is validly
      subsisting under the laws of its jurisdiction of incorporation and has all
      requisite legal and corporate power and authority to execute and deliver
      this Subscription Agreement, to subscribe for the Purchased Securities as
      contemplated herein and to carry out and perform its covenants and
      obligations under the terms of this Subscription Agreement and the
      entering into of this Subscription Agreement and the transactions
      contemplated hereby will not result in the violation of any of the terms
      and provisions of any law applicable to, or the constating documents of,
      the Purchaser or of any agreement, written or oral, to which the Purchaser
      may be a party or by which the Purchaser is or may be bound; 
	 	
       
	 
	 	
      (ii) 
	a partnership, syndicate or other form of unincorporated organization,
      the Purchaser has the necessary legal capacity and authority to execute
      and deliver this Subscription Agreement and to observe and perform its
      covenants and obligations hereunder and has obtained all necessary
      approvals in respect thereof; or 
	 	
       
	 
	 	
      (iii) 
	an individual, the Purchaser has the legal capacity and competence to
      enter into and to execute this Subscription Agreement and to observe and
      perform his or her covenants and obligations hereunder;

	 	(i) 	this subscription has not been solicited in any other manner contrary
      to the Applicable Legislation or the 1933 Act; 
	 	 	 
	 	(j) 	the Purchaser has been advised to consult its own legal and tax
      advisors with respect to applicable resale restrictions and tax
      considerations, and it is solely responsible for compliance with
      applicable resale restrictions and applicable tax legislation; 
	 	 	 
	 	(k) 	the Purchaser has no knowledge of a “material fact” or “material
      change” (as those terms are defined in the Applicable Legislation) in the
      affairs of the Issuer that has not been generally disclosed to the public,
      except knowledge of this particular transaction; 

24 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

	 	(l) 	the offer made by this subscription is irrevocable (subject to the
      Purchaser’s right to withdraw the subscription and to terminate the
      obligations as set out in this Subscription Agreement) and requires
      acceptance by the Issuer and approval of the Exchange; 
	 	 	 
	 	(m) 	the Purchaser is not a “control person” of the Issuer as defined in
      the Applicable Legislation, will not become a “control person” by virtue
      of this subscription for the Securities and does not intend to act in
      concert with any other person to form a control group of the Issuer;

	 	 	 
	 	(n) 	that: 

	 	
      (i) 
	the offer was not made to the Purchaser when the Purchaser was in the
      United States and, at the time the Purchaser’s buy order was made, the
      Purchaser was outside the United States; 
	 	
       
	 
	 	
      (ii) 
	the current structure of this transaction and all transactions and
      activities contemplated hereunder is not a scheme to avoid the
      registration requirements of the 1933 Act; 
	 	
       
	 
	 	
      (iii) 
	the Purchaser has no intention to distribute either directly or
      indirectly any of the Securities in the United States, except in
      compliance with the 1933 Act; 
	 	
       
	 
	 	
      (iv) 
	the Purchaser is not a U.S. Person; and 
	 	
       
	 
	 	
      (v) 
	the Purchaser is not and will not be purchasing Purchased Securities
      for the account or benefit of any U.S. Person; 

	 	(o) 	if the Purchaser is a resident of an International Jurisdiction (which
      is defined herein to mean a country other than Canada or the United
      States), then the Purchaser on its own behalf and, if applicable on behalf
      of others for whom it is hereby acting that: 

	 	
      (i) 
	the Purchaser is knowledgeable of, or has been independently advised
      as to, the International Securities Laws (which is defined herein to mean,
      in respect of each and every offer or sale of Purchased Securities, any
      securities laws having application to the Purchaser and the Private
      Placement other than the laws of Canada and the United States and all
      regulatory notices, orders, rules, regulations, policies and other
      instruments incidental thereto) which would apply to this subscription, if
      any; 
	 	
       
	 
	 	
      (ii) 
	the Purchaser is purchasing the Purchased Securities pursuant to an
      applicable exemption from any prospectus, registration or similar
      requirements under the International Securities Laws of that International
      Jurisdiction, or, if such is not applicable, the Purchaser is permitted to
      purchase the Purchased Securities under the International Securities Laws
      of the International Jurisdiction without the need to rely on exemptions;
    
	 	
       
	 
	 	
      (iii) 
	the subscription by the Purchaser does not contravene any of the
      International Securities Laws applicable to the Purchaser and the Issuer
      and does not give rise to any obligation of the Issuer to prepare and file
      a prospectus or similar document or to register the Securities or to be
      registered with any governmental or regulatory authority; 
	 	
       
	 
	 	
      (iv) 
	the International Securities Laws do not require the Issuer to make
      any filings or seek any approvals of any kind whatsoever from any
      regulatory authority of any kind whatsoever in the International
      Jurisdiction; and 
	 	
       
	 
	 	
      (v) 
	the Securities are being acquired for investment purposes only and not
      with a view to resale and distribution, and the distribution of the
      Securities to the Purchaser by the Issuer complies with all International
      Securities Laws; 

25 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

	 	(p) 	this Subscription Agreement has been duly executed and delivered by
      the Purchaser and constitutes a legal, valid and binding agreement of the
      Purchaser enforceable against the Purchaser; 
	 	 	 
	 	(q) 	the Purchaser has been independently advised as to the applicable hold
      period imposed in respect of the Securities by securities legislation in
      the jurisdiction in which the Purchaser resides and confirms that no
      representation has been made respecting the applicable hold periods for
      the Securities and acknowledges that the hold period indicated in the
      Terms does not constitute such representation and is aware of the risks
      and other characteristics of the Securities and of the fact that the
      Purchaser may not be able to resell the Securities except in accordance
      with the applicable securities legislation and regulatory policies; 
	 	 	 
	 	(r) 	the Purchaser is capable of assessing the proposed investment as a
      result of the Purchaser’s financial and business experience or as a result
      of advice received from a registered person other than the Issuer or any
      affiliates of the Issuer; 
	 	 	 
	 	(s) 	if required by applicable securities legislation, policy or order or
      by any securities commission, stock exchange or other regulatory
      authority, the Purchaser will execute, deliver, file and otherwise assist
      the Issuer in filing, such reports, undertakings and other documents with
      respect to the issuance of the Securities as may be required; and 
	 	 	 
	 	(t) 	the funds representing the aggregate subscription price for the
      Purchased Securities which will be advanced by the Purchaser hereunder
      will not represent proceeds of crime for the purposes of the Proceeds
      of Crime (Money Laundering) and Terrorist Financing Act (Canada) and
      the Purchaser acknowledges that the Issuer may in the future be required
      by law to disclose the Purchaser’s name and other information relating to
      this Subscription Agreement and the Purchaser’s subscription hereunder, on
      a confidential basis, pursuant to such Act. To the best of its knowledge:
      (a) none of the subscription funds to be provided by the Purchaser (i)
      have been or will be derived from or related to any activity that is
      deemed criminal under the law of Canada, the United States, or any other
      jurisdiction, or (ii) are being tendered on behalf of a person or entity
      who has not been identified to the Purchaser; and (b) the Purchaser shall
      promptly notify the Issuer if the Purchaser discovers that any of such
      representations ceases to be true, and to provide the Issuer with
      appropriate information in connection therewith. 

2.3      Reliance, indemnity and
notification of changes 

The representations and warranties in the Subscription
Agreement (including the first (cover) page, the Terms on pages 4 to 6, the
General Provisions on pages 20 to 30 and the other appendices, acknowledgements,
provisions and forms incorporated by reference) are made by the Purchaser with
the intent that they be relied upon by the Issuer in determining its suitability
as a purchaser of Purchased Securities, and the Purchaser hereby agrees to
indemnify the Issuer against all losses, claims, costs, expenses and damages or
liabilities which any of them may suffer or incur as a result of reliance
thereon. The Purchaser undertakes to notify the Issuer immediately of any change
in any representation, warranty or other information relating to the Purchaser
set forth in the Subscription Agreement (including the first (cover) page, the
Terms on pages 4 to 6, the General Provisions on pages 20 to 30 and the other
appendices, acknowledgements, provisions and forms incorporated by reference)
which takes place prior to the Closing. 

2.4      Survival of representations
and warranties

The representations and warranties contained in this Section
will survive the Closing. 

26 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

3      REPRESENTATIONS AND
WARRANTIES OF THE ISSUER 

By executing this Subscription Agreement, the Issuer
represents, warrants and covenants to the Purchaser, which representations,
warranties and covenants will be true and correct as of the Closing Date (as
herein defined) with the same force and effect as if made at and as of the
Closing (and acknowledges that the Purchaser is relying thereon) that: 

	 	a) 	The Issuer has been duly incorporated and organized and is a valid and
      subsisting Issuer under the laws of the State of Nevada and is duly
      qualified to carry on business in each jurisdiction wherein the carrying
      out of the activities contemplated makes such qualifications necessary;
  
	 	 	 
	 	b) 	The shares which form a part of the Units will, upon issue and
      delivery, be validly issued as fully paid and non-assessable. 
	 	 	 
	 	c) 	The Issuer has the full corporate right, power and authority to
      execute this Subscription Agreement, and to issue the Units to the
      Purchaser pursuant to the terms of this Subscription Agreement 
	 	 	 
	 	d) 	This Subscription Agreement constitutes a binding and enforceable
      obligation of the Issuer, enforceable in accordance with its terms. 
	 	 	 
	 	e) 	This Subscription has been given for valuable consideration and is
      irrevocable, except with the written consent of the Issuer. 
	 	 	 
	 	f) 	The Issuer has filed all forms, reports, documents and information
      required to be filed by it, whether pursuant to applicable securities laws
      or otherwise, with the Exchange (or one of its predecessors) or the
      applicable securities regulatory authorities (the “Disclosure Documents”).
      As of the time the Disclosure Documents were filed with the applicable
      securities regulators and on SEDAR (System for Electronic Document
      Analysis and Retrieval) as applicable (or, if amended or superseded by a
      filing prior to the date of this Agreement, then on the date of such
      filing): (i) each of the Disclosure Documents complied in all material
      respects with the requirements of the applicable securities laws; and (ii)
      none of the Disclosure Documents contained any untrue statement of a
      material fact or omitted to state a material fact required to be stated
      therein or necessary in order to make the statements therein, in the light
      of the circumstances under which they were made, not misleading. 
	 	 	 
	 	g) 	The financial statements of the Issuer contained in the Disclosure
      Documents : (i) complied as to form in all material respects with the
      published rules and regulations under the applicable securities laws; (ii)
      were reported in accordance with United States generally accepted
      accounting principles or International Financial Reporting Standards, as
      the case may be; and (iii) present fairly the consolidated financial
      position of the Issuer and its subsidiaries, if any, as of the respective
      dates thereof and the consolidated results of operations of the Issuer and
      its subsidiaries, if any, for the periods covered thereby. 
	 	 	 
	 	h) 	There is no “material fact” or “material change” (as those terms are
      defined in the Acts) in the affairs of the Issuer that has not been
      generally disclosed to the public. 

4      PERSONAL INFORMATION

The Purchaser provides its consent to: 

	 	(a) 	the disclosure of Personal Information by the Issuer to the Exchange,
      to the Ontario Securities Commission and to any other applicable
      securities regulatory authorities, the Issuer’s registrar and transfer
      agent, legal counsel and any other party involved in the purchase and sale
      of the Purchased Securities; 
	 	 	 
	 	(b) 	the collection, use and disclosure of Personal Information by the
      Exchange for the purposes described herein, or as otherwise identified by
      the Exchange, from time to time; and 

27 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

	 	(c) 	the collection, use and disclosure of Personal Information by the
      Commissions for the purposes described in herein. 

5      ISSUER’S ACCEPTANCE

This Subscription Agreement, when executed by the Purchaser,
and delivered to the Issuer, will constitute a subscription for the Purchased
Securities which will not be binding on the Issuer until accepted by the Issuer
by executing this Subscription Agreement in the space provided on the face
page(s) of this Subscription Agreement and, notwithstanding the Agreement Date,
if the Issuer accepts the subscription by the Purchaser, this Subscription
Agreement will be entered into on the date of such execution by the Issuer. 

6      CLOSING 

6.1      The Purchaser acknowledges
that, although Purchased Securities may be issued to other purchasers under the
Private Placement concurrently with the Closing, there may be other sales of
Purchased Securities under the Private Placement, some or all of which may close
before or after the Closing. The Purchaser further acknowledges that there is a
risk that insufficient funds may be raised on the Closing to fund the Issuer’s
objectives, and that further closings may not take place after the Closing. 

6.2      On or before the Closing
Date, the Purchaser will deliver to the Issuer the Subscription Agreement and
all applicable acknowledgements, provisions and required forms, duly executed,
and payment in full for the total price of the Purchased Securities to be
purchased by the Purchaser.

6.3      At Closing, the Issuer will
deliver the certificates representing the Purchased Securities purchased by the
Purchaser registered in the name of the Purchaser or its nominee.

6.4.      If a Purchaser acquired the
Purchased Securities pursuant to section 2.2(iii), such Purchaser will have
certain rights, some of which are described below. For information about such
rights, an eligible Purchaser should consult a lawyer. 

If there is a misrepresentation in this
Agreement, such Purchaser will have a contractual right to sue the Issuer: 

	 	(a) 	to cancel its agreement to buy the Purchased Securities, or 
	 	 	 
	 	(b) 	for damages. 

This contractual right to sue is
available to such Purchaser will whether or not it relied on the
misrepresentation. However, in an action for damages, the amount such Purchaser
may recover will not exceed the price that it paid for the Purchased Securities
and will not include any part of the damages that the Issuer proves does not
represent the depreciation in value of the Purchased Securities resulting from
the misrepresentation. The Issuer has a defence if it proves that the Purchaser
knew of the misrepresentation when the Purchaser purchased the Securities. 

If a Purchaser intends to rely on the
rights described in (a) or (b) above, it must do so within strict time
limitations. It must commence an action to cancel this Agreement within 180 days
after it has signed this Agreement to purchase the Securities. It must commence
an action for damages within the earlier of 180 days after learning of the
misrepresentation and 3 years after it signed this agreement to purchase the
Securities. 

7      EXISTING SECURITY HOLDER
EXEMPTION AND INVESTMENT DEALER EXEMPTION

If the Subscriber is purchasing the Units in reliance on either
the Existing Security Holder Exemption or the Investment Dealer Exemption, the
Issuer represents and warrants to the Subscriber that: 

28 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

	 	(a) 	the Issuer's “documents” and “core documents” (both as
      defined under applicable Securities Laws) do not contain a
      misrepresentation; and 
	 	 	 
	 	(b) 	there is no material fact or material change related to the Issuer
      which has not been generally disclosed, and 

the Subscriber is hereby advised that he, she or it has a
contractual right of action (the “Right of Action”) against the
Issuer for rescission or damages available to the Subscriber if any document or
core document of the Issuer contains a misrepresentation which is not corrected
prior to the Closing Date, without regard to whether the Subscriber relied on
the misrepresentation when purchasing the Units. The Right of Action is
enforceable by the Subscriber by delivering a notice to the Issuer: 

	 	(a) 	in the case of an action for rescission, within 180 days of the
      Subscriber signing this Subscription Agreement, or 
	 	 	 
	 	(b) 	in the case of an action for damages, before the earlier of:
  

	 	(i) 	180 days after the Subscriber first has knowledge of the facts giving
      rise to the cause of action; or 
	 	 	 
	 	(ii) 	three years of the date the Subscriber signs this Agreement.
  

The Subscriber acknowledges and agrees that: 

	 	(c) 	the Right of Action may be subject to the defence that the Subscriber
      had knowledge of the misrepresentation; 
	 	 	 
	 	(d) 	in the case of an action for damages: 

	 	(i) 	the amount recoverable will not exceed the price at which the Shares
      were offered; and 
	 	 	 
	 	(ii) 	does not include all or any part of the damages that the Issuer proves
      does not represent the depreciation in value of the security resulting
      from the misrepresentation; and 

	 	(e) 	the Right of Action is in addition to, and does not detract from, any
      other right of the Subscriber. 

8      MISCELLANEOUS

8.1      The Purchaser agrees to sell,
assign or transfer the Securities only in accordance with the requirements of
applicable securities laws and any legends placed on the Securities as
contemplated by the Subscription Agreement. 

8.2      The Purchaser hereby
authorizes the Issuer to correct any minor errors in, or complete any minor
information missing from any part of the Subscription Agreement and any other
acknowledgements, provisions, forms, certificates or documents executed by the
Purchaser and delivered to the Issuer in connection with the Private
Placement.

8.3      The Issuer may rely on
delivery by fax machine or e-mail of an executed copy of this subscription, and
acceptance by the Issuer of such faxed or e-mailed copy will be equally
effective to create a valid and binding agreement between the Purchaser and the
Issuer in accordance with the terms of the Subscription Agreement. If less than
a complete copy of this Subscription Agreement is delivered to the Issuer at
Closing, the Issuer and its advisors are entitled to assume that the Purchaser
accepts and agrees to all of the terms and conditions of the pages not delivered
at Closing unaltered.

8.4      Without limitation, this
subscription and the transactions contemplated by this Subscription Agreement
are conditional upon and subject to the Issuer’s having obtained such regulatory
approval of this subscription and the transactions contemplated by this
Subscription Agreement as the Issuer considers necessary.

29 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

8.5      This Subscription Agreement
is not assignable or transferable by the parties hereto without the express
written consent of the other party to this Subscription Agreement. 

8.6       Time is of the essence
of this Subscription Agreement and will be calculated in accordance with the
provisions of the Interpretation Act (British Columbia).

8.7       Except as expressly
provided in this Subscription Agreement and in the agreements, instruments and
other documents contemplated or provided for in this Subscription Agreement,
this Subscription Agreement contains the entire agreement between the parties
with respect to the Securities and there are no other terms, conditions,
representations or warranties whether expressed, implied, oral or written, by
statute, by common law, by the Issuer, or by anyone else.

8.8       The parties to this
Subscription Agreement may amend this Subscription Agreement only in
writing.

8.9       This Subscription
Agreement enures to the benefit of and is binding upon the parties to this
Subscription Agreement and their successors and permitted assigns.

8.10       A party to this
Subscription Agreement will give all notices to or other written communications
with the other party to this Subscription Agreement concerning this Subscription
Agreement by hand or by registered mail addressed to the address given on page
1.

8.11       The contract arising
out of this Subscription Agreement and all documents relating thereto, have been
or will be drafted in English only by common accord among the parties. Le
soussigné reconnaît par les présentes qu’il a exigé que le contrat résultant de
cette convention de souscription ainsi que tous documents y afférents soient
rédigés en langue anglaise seulement.

8.12       This Subscription
Agreement is to be read with all changes in gender or number as required by the
context.

8.13       This Subscription
Agreement will be governed by and construed in accordance with the internal laws
of British Columbia (without reference to its rules governing the choice or
conflict of laws), and the parties hereto irrevocably attorn and submit to the
exclusive jurisdiction of the courts of British Columbia with respect to any
dispute related to this Subscription Agreement.

End of General Provisions 

30 

Subscription Agreement (with related appendices,
acknowledgements, provisions and forms) 

TO SEND A WIRE TO LEXARIA’S BANK ACCOUNT, GIVE THE REMITTING
BANK THE FOLLOWING INSTRUCTIONS...... 

US FUNDS ONLY 

Minimum US$10,600 

	Payable To: 
	Lexaria Bioscience Corp. 
	#950 – 1130 W Pender Street 
	Vancouver BC V6E 4A4 
	250-765-6424 

	BENEFICIARY BANK: 	BANK OF MONTREAL 
	  	595 BURRARD STREET 
	  	VANCOUVER, B. C., CANADA 
	  	  
	CANADIAN BANK NUMBER: 	001 
	TRANSIT NUMBER: 	0004 (or use 00040, if a 5 digit # required)
      
	ACCOUNT NUMBER 	USD: 4633343 
	SWIFT BIC ADDRESS: 	BOFMCAM2 

TO SEND FUNDS FROM A U.S. BANK, IT MAY BE EASIER TO SEND
THROUGH OUR U.S. SUBSIDIARY:

US CORRESPONDENT (for payments in USD only) 

	Wells Fargo 	ABA/Fedwire 026005092 
	NY, NY 	  

End of Subscription Agreement 

31

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