Document:

siljiabrahamofferletter

     2     530 Herman O. West Drive ● Exton, PA  19341  Eric M. Green   Phone:  (610) 594‐3237  President & Chief Executive Officer   February 7, 2018   Silji Abraham  Via E‐Mail  RE:    Offer Letter   Dear Silji:   We are very pleased to confirm our offer of employment to you for the position of Chief Digital  and Transformation Officer for West Pharmaceutical Services, Inc. (the “Company”).  This letter  will confirm the entire compensation package you will enjoy upon joining West.   In this position,  you will report directly to me and, subject to the Board’s approval you will be an appointed  executive officer of the Company at the next regular Board meeting following the date you  commence employment (the ”Start Date”).  Your Start Date will be February 22, 2018 or another  mutually agreeable time.     1. Base Salary – Your initial base salary will be $410,000 per year payable on the Company’s  normal payroll schedule.  2. Place of Employment and Relocation– You will be expected to primarily work from our  Exton, Pennsylvania headquarters.  In the event that you relocate, you are subject to our  normal relocation policy as in effect from time‐to‐time.  3. Annual Incentive Compensation – You will participate in West Pharmaceutical Services’  Annual Incentive Plan (“AIP”) with a target bonus of 65% of base salary in accordance with  the terms of the AIP document.  Your award will be pro‐rated based on your Start Date.   Assuming you are appointed an executive officer, you will be eligible to receive a portion of  your bonus in stock when it is paid with a concomitant matching contribution equal to 25%  of the amount you receive in stock under our Bonus & Incentive (“B&I”) Program.  The  matching contribution generally vests after four years.  You will receive additional  information at the time of payout if you are eligible.  4. Long Term Incentive Compensation.  You will be eligible to participate in West’s Long Term  Incentive Plan (“LTIP”), which issues equity under the 2016 Omnibus Incentive  Compensation Plan.  Your 2018 LTIP award will have a grant date fair value of $400,000  divided equally among stock options (valued using Black‐Scholes on the grant date) and  

 

     3   performance stock units (valued using closing stock price on the grant date) (“PSUs”).  The  stock options will vest 25% per year as set forth in our standard award agreement for all  LTIP participants.  The PSUs will cliff vest after three years dependent upon performance  metrics established by our Compensation Committee, which are currently equally weighted  based on Compound Annual Growth Rate and Return on Invested Capital, and subject to  the terms and conditions applicable to all LTIP participants.  These awards will be made on  the first normal grant date coincident with or following your Start Date.  The normal grant  dates occur quarterly on the third business day following the release of our earnings.  5. Sign‐On Restricted Stock Unit (“RSU”) Award – You will receive an RSU award with a grant  date fair value of $400,000, according to the terms in the RSU agreement attached hereto  as part of Exhibit I.  The shares will be issued under the 2016 Omnibus Incentive  Compensation Plan.  The number of RSUs is determined by reference to the fair market  value (closing price) of our stock on the grant date, which will be the same date that your  LTIP Award is made.  6. Change in Control Agreement; Restrictive Covenants– Assuming you are approved as an  executive officer by the Board, you will receive our standard Change‐in‐Control agreement  for executive officers, a form of which is attached hereto as Exhibit II.  7. Stock Ownership Requirements.  Assuming you are approved as an executive officer by the  Board, you will be subject to our stock ownership requirements as in effect from time‐to‐ time.  Currently, executive officers must acquire and hold stock equal to two times their  base salary after five years of employment.  8. Benefits – The Company offers excellent benefit programs to all of its employees. You will  be eligible to participate in the employee benefit programs which include medical, dental,  life insurance, 401(k) plan, a non‐contributory cash balance pension plan (including a  supplemental employees’ retirement plan), employee stock purchase program and  deferred compensation program. There is a waiting period for some of these plans.    9. Vacation and Holidays – We are able to offer you 20 working days (four weeks) of vacation  annually.  In addition, the Exton office currently observes 11 holidays throughout the year  (9 designated by the Company and 2 personal holidays)  10. Confidentiality Agreement – As a condition of employment, you will be required to sign  our standard employee Confidentiality Agreement.  This offer and your employment with the Company are contingent upon satisfactory references  and verification of the information on your resume.  We will also require that there are no issues  raised by the drug screening or criminal background check that we require of all new employees.   

 

     4   Silji, this highlights the entire compensation package we have offered you.  It is difficult to cover  all the details of each item, but I would be more than willing to answer any questions or provide  additional information to you as necessary.   We very much look forward to your joining our team. We have many challenges and  opportunities ahead and look forward to the contributions we know you can make to the success  of our Company.   If the terms of his offer are acceptable to you, please so indicate by signing the enclosed copy and  this letter and return it to me.   Sincerely,   /s/ Eric M. Green  Eric M. Green   President & Chief Executive Officer   Agreed to and Accepted this __8th___ day of _February___, 2018   __/s/ Silji Abraham_________________  Silji Abraham      

 

     5     EXHIBIT I – RSU                                           February 22, 2018     Silji Abraham      Re:   Restricted Stock Unit (“RSU”) Award   Dear Silji:    Pursuant to your Offer Letter from West Pharmaceutical Services, Inc. (the “Company”), dated February 2, 2018  (the “Offer Letter”),  the Compensation Committee of the Board approved an award under the 2016 Omnibus  Incentive Compensation Plan (the “Plan”) to be made on the first normal grant date following your Start Date.       AWARD TYPE   Grant Date   NUMBER OF SHARES   Fair VALUE     Restricted Stock Unit   $400,000                [$400,000/ closing price on grant date]   The grant date fair value is calculated using the fair market value on the date of the award.  The awards  were made under the Plan.  We have attached a summary of the terms of your awards.  Please read it carefully.   We are pleased that you are a participant in this long‐term incentive compensation program and trust  that your participation will be beneficial to both you and the Company.               

 

     6   Summary of Your RSU     What is an RSU?   An RSU is the right to receive a share of the Company’s Common stock in the future when the RSU vests as described  in this Award.  It is not an issued share of stock until vested, and it cannot be received in cash upon vesting.   Is the RSU immediately vested?   No.  So long as your employment with us continues (except as described below), your RSUs will vest one‐third per  year on the grant date until fully vested on the third anniversary of the grant date.      Will my RSUs vest if I terminate employment?   Your RSUs may become vested, depending on the reason for your termination.  Your RSUs will not become vested  if you are terminated by the Company with Cause (as defined below) or you terminate employment with the  Company without Constructive Termination (as defined below).  If you are terminated by the Company without  Cause or you terminate with Constructive Termination, your RSUs will vest at the same time and in the same  manner as they would have vested had you not been terminated by the Company without Cause or terminated due  to a Constructive Termination.  “Cause” means (i) an act or acts of dishonesty taken by you, (ii) repeated failure by you of the your duties and  obligations as an employee of the Company which are demonstrably willful and deliberate on your part and which  are not remedied after the receipt of written notice from the Company, (iii) your conviction of a felony, or (iv) your  intentional breach of the Company’s Code of Business Conduct  which is materially and demonstrably injurious to  the Company.     “Constructive Termination” means the occurrence of any of the following without your consent: (i) the Company or  its successor in interest requires the Executive to assume any duties inconsistent with, or the Company makes a  significant diminution or reduction in the nature or scope of the your authority or duties from, those assigned to or  held by the Executive on the commencement of the CT Period, including reporting to an individual whose scope of  responsibilities and authority is not as large as the person to whom the Executive reported prior to the Change in  Control Event; (ii) a material reduction in the your: (a) annual base salary, or (b) short term incentive target  compensation; (iii) a relocation of the your site of employment to a location that lengthens the your one‐way  commuting distance to his principal place of employment by 50 or more miles from the your site of employment on  your Start Date; (iv) a material reduction in the package of employment benefits offered to you, unless such  reduction is applicable on a broad basis to similarly‐situated employees of the Company; or (v) a successor of the  Company does not assume the Company’s obligations of this RSU, or any other agreement entered into by the you  and the Company, expressly or as a matter of law.; provided that a Constructive Termination shall only occur if: (a)  within forty‐five (45) calendar days of the initial existence of Constructive Termination, you provide written notice of  Constructive Termination to the Company; (b) the Company does not remedy said Constructive Termination within  thirty (30) calendar days of its receipt of such notice; and (c) you terminate employment within sixty (60) calendar  days after the expiration of such 30‐day remedy period.     Will my RSUs vest if I die or become disabled?   Yes. If you die or become disabled before the RSUs are 100% vested, you will immediately become vested in any  unvested portion of the RSUs.     Will dividend equivalents be credited on the RSUs?   Yes.  When a dividend is paid on Company stock, the Company will credit to your account an additional number of   

 

     7   RSUs.  The number of RSUs to be credited is determined by dividing the dividends paid in respect of the number of  RSUs held by you on the relevant dividend record date by the fair market value of the Company’s stock on that  dividend record date and in accordance with the terms of the Plan.     May I vote my RSUs before they are vested?   No. Before the shares are vested, they are not issued.  Following vesting, when shares are delivered, you will be  permitted to vote these shares.   May I make an election under Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”) with  respect to the RSUs?   No.  Because an RSU is a promise to deliver property in the future, it is not subject to Section 83(b) of the Code.     When will the RSU be included in my income?   The value of the RSU will only be included in your income upon vesting.  Shares may be withheld in accordance with  the Plan to satisfy our withholding obligations.   May I defer my RSUs?   No.  These RSUs are not eligible for further deferral under our Non‐Qualified Deferred Compensation Plan or 401(k)  plan.   Additional Information Applicable to Your RSUs     Are there other circumstances that would lead to a forfeiture of my award or the proceeds that I receive from  exercising my award?   Yes.  All awards are subject to our Incentive Compensation Recovery Policy, which is attached to this award letter as  Exhibit A.  You are encouraged to carefully read that policy and contact me or the Law Department if you have any  questions.  The policy generally provides that in addition to forfeitures of all or part of your award due to your  termination of employment discussed above, in certain other situations you will forfeit your award and may be  required to reimburse us for the amounts you receive as a result of any option that you exercise or share of stock  that you sell.   Your acceptance of this award is expressly conditioned on your agreement to be subject to the  Incentive Compensation Recovery Policy, including the provisions that allow us to deduct any proceeds from other  sources of income payable to you.  This award would not be made if you did not agree to be subject to that policy.   The clawback period described in the Incentive Compensation Recovery policy is extended for the full duration of  the period of continued vesting described in this award.  The Compensation Committee may determine in its sole  and absolute discretion that if circumstances exist that would permit the recovery of incentive compensation paid  to you during the vesting period, in addition to recovering this compensation, all vesting will immediately cease and  the remainder of your awards will be forfeited immediately.   Does the Securities Trading Policy apply to my award?     Yes.  All sales of shares of company stock (including RSUs and shares received upon exercise of the Retention  Option) and all option exercise transactions are subject to our Securities Trading Policy.  Option exercises and stock  sales by West’s officers who are subject to Section 16 of the Securities and Exchange Act of 1934 or on the  designated persons list under our policy also must meet the review and written pre‐approval by our General Counsel  requirements of that policy.  For information and to access the required pre‐clearance form, please go to IntraWest  and look under the Legal & Compliance tab.   

 

     8   Does my acceptance of this award guarantee me any future awards, continued employment or additional  severance pay?   No.  This award is granted at the sole discretion of West.  Your receipt of this award does not guarantee any future  awards, nor does it guarantee your continued employment with the Company.  Subject to applicable law, your  employment may be terminated for any reason.  Additionally, this award is not part of your base pay or  compensation for determination of any severance pay or benefits you may be entitled to upon termination of  employment unless that is specifically agreed to in writing between you and the Company.   Where can I find additional information about my award?   This is a summary of the terms of your RSUs.  Your award is subject to the terms of the Plan. This award is being  delivered with an Information Statement, which gives additional information about your award and the Plan under  which it was granted.  We encourage you to read the Information Statement.  Additional terms and conditions may  apply to your award under the terms of the Plan.              

 

     9   EXHIBIT A   Incentive Compensation Recovery Policy      The Company may seek to recover incentive compensation awarded to any recipient in accordance with the terms of  this policy.  Each award of annual or long‐term equity‐based or performance‐based compensation must specify that the  award is subject to this policy.   Restatement of Financial Results.  The Company will cancel or will seek to recover all or a portion of an award from any  executive officer of the Company if the Company is required to significantly or materially restate its financial statements  (other than to comply with changes to applicable accounting principles) with respect to any of the three fiscal years  before the payment of the award.  The Company also will not pay or will seek to recover all or a portion of an award  from any award recipient whose fraud or misconduct causes the restatement of the Company’s financial statements  with respect to any of the three fiscal years before the payment of the award.   Calculation Errors.   Even if no financial results are restated,  if an award is paid or distributed, and it  is subsequently  determined  that  the  award  should  have  been  less  than  the  amount  calculated  due  to mathematical  errors,  fraud,  misconduct or gross negligence, the Company may seek repayment of the award from any award recipient during the  three‐year period following the payment of the award.   Detrimental Conduct.  If an award recipient directly or indirectly engages in conduct that competes with the Company,  or any conduct that  is materially  inimical, contrary, harmful to, or not  in the best  interests of the Company or  if the  award recipient fails to comply with any of the material terms and conditions of the award (unless the failure is remedied  within ten days after having been notified of such failure), then the Company has the discretion to immediately cancel  any and all outstanding awards and require that the award recipient repay all or any portion of an award, including the  gain realized on the exercise of a stock option, stock appreciation right or the disposition of any other equity‐based  award.  To be subject to this policy, the detrimental conduct must have occurred during the six‐month period following  the later of (1) the date the recipient ceases rendering service to the Company or, (2) the date the award is paid (or an  option or stock appreciation right is exercised).   Exercise of Discretion.   With respect to executive officers and members of the board of directors, the compensation  committee has the sole and absolute authority (unless the board determines that the whole board should have such  authority) to determine whether to exercise its discretion to seek repayment or cancel an award and what portion of an  award should be recovered or canceled.  With respect to all other award recipients, the officers of the Company have  sole and absolute authority.  The compensation committee, board or officers, as appropriate, will consider all relevant  facts and circumstances in exercising their discretion.  These facts and circumstances include: (1) the materiality of any  changes  to  calculations  or  financial  results,  (2)  the  potential windfall  received  by  recipients,  (3)  the  culpability  and  involvement of the award recipients, (4) the controls in place to limit misconduct or incorrect reporting, (5) the period  during which any misconduct occurred, (6) any other negative repercussions experienced by the award recipient, (7) the  period that has elapsed since the date of any misconduct and (8) the feasibility and costs of recovering the compensation.   Enforcement.  The board intends that this policy will be applied to the fullest extent permitted by applicable law.  The  Company has the authority to seek recovery through any available means  including  litigation or the filing of  liens,  if  necessary.  The Company also has the authority, to the extent permitted by law, to deduct the amount to be repaid from  any amounts otherwise owed to the recipient, including wages or other compensation, fringe benefits, or vacation paid.   Whether or not the Company elects to make any deduction, if the Company does not recover the full amount that it has  determined should be recovered, the recipient must immediately repay the unpaid balance.  By agreeing to accept an  award, each award recipient consents to the Company’s right to make these deductions.    

 

 

 

      EXHIBIT II – CIC AGREEMENT   FORM OF CHANGE‐IN‐CONTROL AGREEMENT      THIS IS A CHANGE‐IN‐CONTROL AGREEMENT (the “Agreement”), dated as of   __________February 8, 2018____________, between West Pharmaceutical Services, Inc., a  Pennsylvania   corporation, (the “Company”) and Silji Abraham (the “Executive”).  WHEREAS, the Company, on behalf of itself and its shareholders, wishes to assure that the  Company will have the continued dedication of the Executive, notwithstanding the possibility,  threat, or occurrence of a Change in Control (as defined below) of the Company. The Board of  Directors of the Company (the “Board”) believes it is imperative to diminish the inevitable  distraction of the Executive by virtue of the personal uncertainties and risks created by a pending  or threatened Change in Control, to encourage the Executive’s attention and dedication to the  Executive’s assigned duties currently and in the event of any threatened or pending Change in  Control, and to provide the Executive with competitive compensation arrangements; therefore,  the Board has caused the Company to enter into this Agreement (i) to ensure the Executive of  individual financial security in the event of a Change in Control, and (ii) to provide such  protection in a manner which is competitive with that of other corporations.   NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:   1. Definitions.  As used in this Agreement, the following terms will have the meanings set  forth below:  (a) An “Affiliate” of any Person means any Person directly or indirectly controlling,  controlled by or under common control with such Person.  (b) “Cause” means (i) an act or acts of dishonesty taken by the Executive,  (ii) repeated failure by the Executive of the Executive’s duties and obligations as  an employee and officer of the Company which are demonstrably willful and  deliberate on the Executive’s part and which are not remedied after the receipt  of written notice from the Company, (iii) the conviction of the Executive of a  felony, or (iv) an intentional breach of the Company’s Code of Business Conduct   which is materially and demonstrably injurious to the Company.  (c) “Change in Control” means a change in control of a nature that would be  required to be reported in response to Item 5.01 of a Current Report on Form 8‐ K as in effect on the date of this Agreement pursuant to Section 13 or 15(d) of  the Securities Exchange Act of 1934, as amended, (the “Act”), provided, that,  without limitation, a Change in Control shall be deemed to have occurred if:  (i) Any Person, other than:  

 

  (1) the Company,  (2) any Person who on the date hereof is a director or officer of the  Company, or  (3) a trustee or fiduciary holding securities under an employee  benefit plan of the Company,  is or becomes the “beneficial owner,” (as defined in Rule 13d‐3 under  the Act), directly or indirectly, of securities of the Company representing  more than 50% of the combined voting power of the Company’s then  outstanding securities; or  (ii) During any period of two consecutive years during the term of this  Agreement, individuals who at the beginning of such period constitute  the Board of Directors of the Company cease for any reason to  constitute at least a majority thereof, unless the election, or nomination  for election, of each director who was not a director at the beginning of  such period has been approved in advance by directors representing at  least three‐fourths of the directors then in office who were directors at  the beginning of the period; or  (iii) The shareholders of the Company approve: (1) a plan of complete  liquidation of the Company; or (2) an agreement for the sale or  disposition of all or substantially all of the Company’s assets; or (3) a  merger, consolidation, or reorganization of the Company with or  involving any other corporation, other than a merger, consolidation, or  reorganization (collectively, a “Non‐Control Transaction”), that would  result in the voting securities of the Company outstanding immediately  prior thereto continuing to represent (either by remaining outstanding  or by being converted into voting securities of the surviving entity), at  least 50% of the combined voting power of the voting securities of the  Company (or the surviving entity, or an entity which as a result of the  Non‐Control Transaction owns the Company or all or substantially all of  the Company’s assets either directly or through one or more  subsidiaries) outstanding immediately after the Non‐Control  Transaction.  (iv) No sale to underwriters or private placement of its capital stock by the  Company, nor any acquisition initiated by the Company, through merger,  purchase of assets or otherwise, effected in whole or in part by issuance  or reissuance of shares of its capital stock, shall constitute a Change in  Control.   (d)  “Code” means the Internal Revenue Code of 1986, as amended.  (e) “Constructive Termination” means, in connection with a Change in Control,  during the period commencing with the announcement of a Change in Control  through the two‐year period following the Effective Date (the “CT Period”), the  

 

  occurrence of any of the following events unless the Executive has consented in  writing or provided a written waiver to that effect:  (i) The Company or its successor in interest requires the Executive to  assume any duties inconsistent with, or the Company makes a significant  diminution or reduction in the nature or scope of the Executive’s  authority or duties from, those assigned to or held by the Executive on  the commencement of the CT Period, including reporting to an individual  whose scope of responsibilities and authority is not as large as the  person to whom the Executive reported prior to the Change in Control  Event;  (ii) A material reduction in the Executive’s: (1) annual base salary, or (2)  short term incentive target compensation;  (iii) A relocation of the Executive’s site of employment to a location that  lengthens the Executive’s one‐way commuting distance to his principal  place of employment by 50 or more miles from the Executive’s site of  employment on the Effective Date;  (iv) A material reduction in the package of employment benefits offered to  the Executive as of the commencement of the CT Period, unless such  reduction is applicable on a broad basis to similarly‐situated employees  of the Company; or  (v) A successor of the Company does not assume the Company’s obligations  under this Agreement, or any other agreement entered into by the  Executive and the Company, expressly or as a matter of law.    Notwithstanding the above, Constructive Termination will only be deemed to  have occurred if the Executive (i) has served written notice to the Company or its  successor in interest that a right of Constructive Termination has accrued in  favor of the Executive within forty‐five (45) calendar days of the initial existence  of the basis for Constructive Termination, (ii) the Company or its successor in  interest does not remedy such condition within thirty (30) calendar days of its  receipt of such notice, and (iii) the Executive terminates employment within sixty  (60) calendar days after the expiration of the 30‐day remedy period.  (f) “Defined Contribution Plan” means the Company’s 401(k) Plan, the Company’s  Non‐Qualified Deferred Compensation Plan for Designated Employees and any  successor plans or other similar defined contribution plans established from time  to time that may allow executive officers to defer taxation of compensation.  (g)  “Payment” means:  (i) any amount due or paid to the Executive under this Agreement,   (ii) any amount that is due or paid to the Executive under any plan, program  or arrangement of the Company and any of its Subsidiaries, and   

 

  (iii) any amount or benefit that is due or payable to the Executive under this  Agreement or under any plan, program or arrangement of the Company  and any of its Subsidiaries not otherwise covered under clause (i) or (ii)  hereof which must reasonably be taken into account under Section 280G  of the Code and the Regulations in determining the amount of the  “parachute payments” received by the Executive, including, without  limitation, any amounts which  must be taken into account under the  Code and Regulations as a result of (1) the acceleration of the vesting of  any option, restricted stock or other equity award granted under any  equity plan of the Company or otherwise, (2) the acceleration of the  time at which any payment or benefit is receivable by the Executive or  (3) any contingent severance or other amounts that are payable to the  Executive.  (h) “Person” means any individual, corporation or other entity and any group as such  term is used in Section 13 (d) (3) or 14 (d) (2) of the Exchange Act. Any person shall  be deemed to be the beneficial owner of any shares of capital stock of the Company:     (i) which that person owns directly, whether or not of record, or     (ii) which that person has the right to acquire pursuant to any agreement or  understanding or upon exercise of conversion rights, warrants, or options, or  otherwise, or     (iii) which are beneficially owned, directly or indirectly (including shares deemed  owned through application of clause (ii) above), by an “affiliate” or “associate”  (as defined in the rules of the Securities and Exchange Commission under the  Securities Act of 1933, as amended) of that person, or     (iv) which are beneficially owned, directly or indirectly (including shares deemed  owned through application of clause (ii) above), by any other person with which  that person or his “affiliate” or “associate” (defined as aforesaid) has any  agreement, arrangement or understanding for the purpose of acquiring, holding,  voting or disposing of capital stock of the Company.   The outstanding shares of capital stock of the Company shall include shares deemed  owned through application of clauses (ii), (iii) and (iv) above, but shall not include  any other shares which may be issuable pursuant to any agreement or upon exercise  of conversion rights, warrants or options, or otherwise, but which are not actually  outstanding.    (i) “Regulations” means the proposed, temporary and final regulations under  Sections 4999, 280G or 409A of the Code or any successor provisions thereto, as  applicable.  (j)  “Retirement Plan” means the West Pharmaceutical Services, Inc. Employees’  Retirement Plan and any successor plan thereto.  

 

  (k) “Separation from Service” is the date on which the Executive ceases to be  employed by the Company or any of its Subsidiaries or Affiliates for any reason  and, to the extent that Section 409A of the Code applies to the Payments under  this Agreement, shall be the date that the Executive incurs a “separation from  service” as defined in that Code section and the Regulations.   (l)  “Subsidiary” has the meaning ascribed to the term by Section 425(f) of the  Code.  2. Termination Following a Change in Control.  (a) Subject to Section 2(b), the Executive will be entitled to the benefits specified in  Section 3 if,   (i) at any time within two years after a Change in Control has occurred, a  Separation from Service occurs due to: (1) an involuntary termination of the  Executive’s employment by the Company other than for Cause, or (2) as a  result of the Executive’s resignation at any time following the Executive’s  Constructive Termination;   (ii) the Company signs an agreement, the consummation of which would result  in the occurrence of a Change in Control, and then, a Separation from  Service occurs due to (1) an involuntary termination of employment by the  Company other than for Cause, or  (2) the Executive’s resignation at any time  following the Executive’s Constructive Termination occurring after the date  of such agreement (and, if such agreement expires or is terminated prior to  consummation, prior to the expiration or termination of such agreement).  (b) The Executive will not be entitled to the benefits specified in Section 3 if the  Executive’s employment terminates as a result of Cause.  (c)   The Executive shall have no right to the benefits described in Section 3 unless  the Executive executes a settlement and release in a form that is typical of that  used by the Company in connection with the termination of employment of its  senior‐most executives prior to the announcement of the Change in Control  provided, however, that settlement and release shall not amend or limit any  right or obligation of Executive hereunder.  3. Benefits Payable Upon Termination of Employment.  Following a Separation from  Service due to a termination of employment described in Sections 2(a) or (b), the  Executive will be entitled to the following benefits:  (a) Severance Compensation.  The Executive will be entitled to severance  compensation in an amount equal to two times the sum of:   (i) the Executive’s highest annual base salary rate in effect during the year of  the termination of the Executive’s employment, plus  (ii) the target short term incentive compensation for the Executive in the  year in which the termination of employment becomes effective.  

 

  Except as set forth in Section 3(f) hereof, the severance compensation paid  hereunder will not be reduced to the extent of any other compensation for the  Executive’s services that the Executive receives or is entitled to receive from any  other employment consistent with the terms of this Agreement.   (b) Incentive Compensation.  The Executive will receive payout on short and long  term incentives as follows:  (i) If the Executive’s employment is terminated prior to the normal payout  date for short term incentive compensation for the fiscal year  immediately preceding the year of termination of employment, the  Executive will be paid such short‐term compensation as earned in  accordance with the terms of the plan or, if it is not possible to calculate  said award, then at target;  (ii) For the year in which the Executive’s employment is terminated, the  executive will receive non‐equity, cash‐settled short‐term incentive  compensation at target but subject to pro ration based on the number of  calendar days the Executive was employed during such year divided by  365; and  (iii) For the year in which the Executive’s employment is terminated, the  executive will receive non‐equity, cash‐settled long‐term incentive  compensation at target but subject to pro ration based on the number of  calendar days the Executive was employed during the relevant  performance period divided by the number of days in the entire original  performance period.  (c) Equivalent of Vested Defined Contribution Plan Benefit. The Company will pay to  the Executive the difference, if any, between  (i) the benefit the Executive would be entitled to receive under the Defined  Contribution Plan if the Company’s contributions to the Defined  Contribution Plan were fully vested upon the Separation from Service,  and  (ii) the benefit the Executive is entitled to receive under the terms of the  Defined Contribution Plan upon the Separation from Service.    Any such benefit will be payable at such time and in such manner as benefits are  payable to the Executive under the Defined Contribution Plan.  (d) Unvested Equity Awards.  All stock options, other equity‐based awards and  shares of the Company’s stock granted or awarded to the Executive pursuant to  any Company compensation or benefit plan or arrangement, but which are  unvested, will vest in full immediately upon the Separation from Service.  If such  unvested awards are dependent upon achievement of performance goals, those  goals will be deemed to be satisfied at the target level. The provisions of this  Section 3(d) will supersede the terms of any such grant or award made to the  Executive under any such plan or arrangement to the extent there is an  

 

  inconsistency between the two.  For the purpose of this paragraph, the  definition of Company shall include the Affiliate of the acquiring entity that may  be the grantor of equity awards granted to the Executive.  (e) Employee and Executive Benefits.  The Executive will be entitled to a  continuation of all hospital, medical, dental, and similar insurance benefits not  otherwise addressed in this Agreement in the same manner and amount to  which the Executive was entitled on the date of the announcement of a Change  in Control or on the date of Constructive Termination of the Executive’s  employment (whichever benefits are more favorable to the Executive) until the  earlier of:  (i) a period of 24 months after the Separation from Service, or  (ii) the Executive’s eligibility for similar benefits with a new employer.    Assistance in finding new employment will be made available to the Executive by  the Company if the Executive so requests subject to a limit of $50,000 and use of  an outplacement service provider approved by the Company.    (f)   No Duplication of Payments.  If Executive is entitled to receive any Payment  under this Agreement, the Executive shall not also be entitled to receive  severance payments under any other plan, program or agreement with the  Company.  (g)   Payment of Severance Compensation.  The severance compensation set forth in  Section 3(a) will be payable in 24 equal monthly installments commencing on the  first day of the month following the month in which the Separation from Service  occurs.  Notwithstanding the above, in the event that the Executive is a  “specified employee” within the meaning of Code Section 409A, the first six  monthly installments shall be paid in a lump sum on the first day of the month  following or coincident with the date that is six months following the Separation  from Service and all remaining monthly installments shall be paid monthly.  4. Excise Tax Limitation.  (a) Limitation.  Notwithstanding any other provisions of this Agreement to the  contrary, in the event that any Payments received or to be received by the  Executive in connection with the Executive’s employment with the Company (or  termination thereof) under this Agreement or otherwise would subject the  Executive to the excise tax (plus any related interest and penalties) imposed  under Section 4999 of the Internal Revenue Code of 1986, as amended (the  “Excise Tax”), and if the net‐after tax amount (taking into account all applicable  taxes payable by the Executive, including any Excise Tax) that the Executive  would receive with respect to such payments or benefits does not exceed the  net‐after tax amount the Executive would receive if the amount of such payment  and benefits were reduced to the maximum amount which could otherwise be  payable to the Executive without the imposition of the Excise Tax, then, to the  extent necessary to eliminate the imposition of the Excise Tax, (i) such cash  

 

  Payments shall first be reduced (if necessary, to zero), then (ii) all non‐cash  Payments (other than those relating to equity and incentive plans) shall next be  reduced (if necessary, to zero,) and finally (iii) all other non‐cash Payments  relating to equity and incentive plans shall be reduced.  (b) Determination of Application of the Limitation.  Subject to the provisions of  Section 4(c), all determinations required under this Section 4 shall be made by  the accounting firm that was the Company’s independent auditors immediately  prior to the Change in Control (or, in default thereof, an accounting firm  mutually agreed upon by the Company and the Executive) (the “Accounting  Firm”), which shall provide detailed supporting calculations both to the  Executive and the Company within fifteen days of the Change in Control, the  Separation from Service or any other date reasonably requested by the  Executive or the Company on which a determination under this Section 4 is  necessary or advisable.  If the Accounting Firm determines that no Excise Tax is  payable by the Executive, the Company shall cause the Accounting Firm to  provide the Executive with an opinion that the Accounting Firm has substantial  authority under the Code and Regulations not to report an Excise Tax on the  Executive’s federal income tax return.  Any determination by the Accounting  Firm shall be binding upon the Executive and the Company.    (c) Procedures.  The Executive shall notify the Company in writing of any claim by  the Internal Revenue Service that, if successful, would result in Payments that  would be less on an after‐tax basis than had those payments been limited under  Section 4(a).  Such notice shall be given as soon as practicable after the Executive  knows of such claim and shall apprise the Company of the nature of the claim  and the date on which the claim is requested to be paid.  The Executive agrees  not to pay the claim until the expiration of the thirty‐day period following the  date on which the Executive notifies the Company, or such shorter period ending  on the date the taxes with respect to such claim are due (the “Notice Period”).  If  the Company notifies the Executive in writing prior to the expiration of the  Notice Period that it desires to contest the claim, the Executive shall:  (i) give the  Company any information reasonably requested by the Company relating to the  claim; (ii) take such action in connection with the claim as the Company may  reasonably request, including, without limitation, accepting legal representation  with respect to such claim by an attorney reasonably selected by the Company  and reasonably acceptable to the Executive; (iii) cooperate with the Company in  good faith in contesting the claim; and (iv) permit the Company to participate in  any proceedings relating to the claim.  The Executive shall permit the Company  to control all proceedings related to the claim and, at its option, permit the  Company to pursue or forgo any and all administrative appeals, proceedings,  hearings, and conferences with the taxing authority in respect of such claim.  If  requested by the Company, the Executive agrees either to pay the tax claimed  and sue for a refund or contest the claim in any permissible manner and to  prosecute such contest to a determination  before any administrative tribunal, in  a court of initial jurisdiction and in one or more appellate courts as the Company  shall determine; provided, however, that, if the Company directs the Executive  to pay such claim and pursue a refund, the Company shall advance the amount  of such payment to the Executive on an after‐tax and interest‐free basis (the  “Advance”).  The Company’s control of the contest related to the claim shall be  

 

  limited to the issues related to the Payments and the Executive shall be entitled  to settle or contest, as the case may be, any other issues raised by the Internal  Revenue Service or other taxing authority.  The Advance or other payments and  the reimbursement of any related costs, expenses or taxes payable under this  Section 4(c) and/or Section 4(e) shall be made on or before the end of the  Executive’s taxable year following the taxable year in which any additional taxes  are payable by the Executive or if no additional taxes are payable the Executive’s  taxable year following the taxable year in which the audit or litigation is closed.   Notwithstanding the above, to the extent required to avoid the penalty taxes  and interest payable under Section 409A of the Code, if the Executive is a  “specified person” within the meaning of that Code section, the Advance shall be  delayed until the date that is six months following the Separation from Service.  (d) Repayments.  If, after receipt by the Executive of an Advance, the Executive  becomes entitled to a refund with respect to the claim to which such Advance  relates, the Executive shall pay the Company the amount of the refund (together  with any interest paid or credited thereon after taxes applicable thereto).  If,  after receipt by the Executive of an Advance, a determination is made that the  Executive shall not be entitled to any refund with respect to the claim and the  Company does not promptly notify the Executive of its intent to contest the  denial of refund, then the amount of the Advance shall not be required to be  repaid by the Executive.    (e) Further Assurances.  The Company shall indemnify the Executive and hold the  Executive harmless, on an after‐tax basis, from any costs, expenses, penalties,  fines, interest or other liabilities (“Losses”) incurred by the Executive with  respect to the exercise by the Company of any of its rights under this Section 4,  including, without limitation, any Losses related to the Company’s decision to  contest a claim or any imputed income to the Executive resulting from any  Advance or action taken on the Executive’s behalf by the Company hereunder.   Subject to the last sentence of Section 4(c), the Company shall pay all reasonable  and documented legal fees and expenses incurred under this Section 4 and shall  promptly reimburse the Executive for the reasonable expenses incurred by the  Executive in connection with any actions taken by the Company or required to  be taken by the Executive hereunder.  The Company shall also pay all of the fees  and expenses of the Accounting Firm, including, without limitation, the fees and  expenses related to the opinion referred to in Section 4(b).  5. Legal Fees.  The Company will pay all reasonable and documented legal fees and  expenses which the Executive may incur as a result of the Company’s contesting the  validity or enforceability of this Agreement.  

 

  6. Payments Final.  In the event of a termination of the Executive’s employment under the  circumstances described in this Agreement, the arrangements provided for by this  Agreement, and any other agreement between the Company and the Executive in effect  at that time and by any other applicable plan of the Company in which the Executive  then participates, will constitute the entire obligation of the Company to the Executive,  and performance of that obligation will constitute full settlement of any claim that the  Executive might otherwise assert against the Company on account of such termination.  The Company’s obligation to pay the Executive under this Agreement will be absolute  and unconditional and will not be affected by any circumstance, including without  limitation, any set‐off, counterclaim, defense or other rights the Company may have  against the Executive or anyone else as long as the Executive is not in breach of the  Executive’s obligations under this Agreement.  7. Non‐Competition.  (a) During the two‐year period following the Executive’s termination of employment  covered by this Agreement, the Executive will not, and will not permit any of the  Affiliates of a Person employing Executive (as defined below), or any other  Person, directly or indirectly, to:  (i) engage in competition with, or acquire a direct or indirect interest or an  option to acquire such an interest in any Person engaged in competition  with, the Company's Business (as defined below) in the United States  (other than an interest of not more than 5 percent of the outstanding  stock of any publicly traded company);  (ii) serve as a director, officer, employee or consultant of, or furnish  information to, or otherwise facilitate the efforts of, any Person engaged  in competition with the Company's Business in the United States;  (iii) solicit, employ, interfere with or attempt to entice away from the  Company any employee who has been employed by the Company or a  Subsidiary in an executive or supervisory capacity within one year prior  to such solicitation, employment, interference or enticement; or  (iv) approach, solicit or compete directly or indirectly with the Company or  any Subsidiary or any Person which at any time during the 12 months  immediately preceding the Termination Date:  (1) was a customer, client, supplier, agent or distributor of  the Company or any Subsidiary;  (2) was a customer, client, supplier, agent or distributor of  the Company or any Subsidiary with whom employees  reporting to or under the direct control of the Executive  had personal contact on behalf of the Company or any  Subsidiary; or  

 

  (3) was a Person with whom the Executive had regular,  substantial or a series of business dealings on behalf of  the Company or any Subsidiary (whether or not a  customer, client, supplier, agent or distributor of the  Company or any Subsidiary).  (b) The "Company's Business" means: (i) the manufacture and sale of stoppers,  closures, containers, medical‐device components and assemblies made from  elastomers, metal and plastic for the health‐care and consumer‐products  industries, and (ii) any other business conducted by the Company or any of its  Subsidiaries or Affiliates during the term of this Agreement and in which the  Executive has been actively involved.    8. Confidentiality and Enforcement.  Executive’s obligations under any Confidentiality and  Non‐Disclosure Agreements with the Company and the non‐compete agreement  described in Section 7 (collectively, the “Material Ancillary Agreements”) are hereby  affirmed.  A breach of any Material Ancillary Agreements is a breach of this Agreement  and all Payments and obligations of the Company under this Agreement shall cease in  the event of the breach of those Material Ancillary Agreements.  The Executive  acknowledges that a breach of the covenants contained in this Agreement and the  Material Ancillary Agreements and incorporated by reference into this Agreement will  cause the Company immediate and irreparable harm for which the Company’s remedies  at law (such as money damages) will be inadequate. The Company shall have the right, in  addition to any other rights it may have, to obtain an injunction to restrain any breach or  threatened breach of such agreements. The Company may contact any Person with or  for whom the Executive works after the Executive’s employment by the Company ends  and may send that Person a copy of those agreements and/or this Agreement.  In  consideration of the benefit of having the protection afforded by this Agreement, the  Executive agrees that the provisions of the Material Ancillary Agreements apply to the  Executive, and the Executive will be bound by them, whether or not a Change in Control  occurs or the Executive actually receives the benefits specified in Section 3.    9. Non‐exclusivity of Rights. Nothing in this Agreement shall prevent or limit the  Executive’s continuing or future participation in any benefit, bonus, incentive or other  plan or program provided by the Company or any of its Affiliates and for which the  Executive may qualify, nor shall anything herein limit or otherwise affect such rights as  the Executive may have under any stock option or other agreements with the Company  or any of its Affiliates. Amounts which are vested benefits or which the Executive is  otherwise entitled to receive under any plan or program of the Company or any of its  Affiliates at or subsequent to the date of termination shall be payable in accordance with  such plan or program.     

 

  10. Full Settlement. Except to the extent specifically provided herein, the Company’s  obligation to make the payments provided for in this Agreement and otherwise to  perform its obligations hereunder shall not be affected by any set‐off, counterclaim,  recoupment, defense or other claim, right or action which the Company may have  against the Executive or others.  Payments under this Agreement shall be subject to the  Company’s Incentive Compensation Recovery (Clawback) Policy attached as Exhibit I  (and deemed to be incentive compensation for the purposes of that Policy).  In no event  shall the Executive be obligated to seek other employment or take any other action by  way of mitigation of the amounts payable to the Executive under any of the provisions of  this Agreement. The Company agrees to pay, to the full extent permitted by law, all legal  fees and expenses which the Executive may reasonably incur as a result of any contest  (regardless of the outcome thereof) by the Company or others of the validity or  enforceability of, or liability under, any provision of this Agreement or any guarantee of  performance thereof, plus in each case interest.   11. Duration of Agreement.  This Agreement shall commence on the date first above written  and will continue until terminated by the mutual written consent of the Executive and  the Company or the first anniversary of said date, whichever shall first occur, provided,  however, that the term hereof shall automatically be renewed for subsequent one year  terms unless terminated unilaterally by either party with sixty (60) days written notice to  the other; further provided, however, that unilateral termination is not permitted should  a Change in Control have been announced.  12. Notices.  Each party giving or making notice, request, demand or other communication  (each, a “Notice”) under this Agreement shall give the Notice in writing and use one of  the following methods of delivery: personal delivery, registered or certified mail with  return receipt requested, nationally recognized overnight courier, fax or e‐mail.  Such  Notice shall be addressed to the last address provided by the party receiving Notice.   Notices are not effective unless compliant with this Section and provided within the  timeframes required in this Agreement.  13. Successors.     (a) This Agreement is personal to the Executive and without the prior written  consent of the Company shall not be assignable by the Executive otherwise than  by will or the laws of descent and distribution. This Agreement shall inure to the  benefit of and be enforceable by the Executive’s legal representatives.     (b) This Agreement shall inure to the benefit of and be binding upon the Company  and its successors.     (c) The Company will require any successor (whether direct or indirect, by purchase,  merger, consolidation or otherwise) to all or substantially all of the business  and/or assets of the Company to expressly assume and agree to perform this  Agreement in the same manner and to the same extent that the Company would  be required to perform it if no such succession had taken place. As used in this  Agreement, “Company” shall mean the Company as hereinbefore defined and  any successor to its business and/or assets as aforesaid which assumes and  agrees to perform this Agreement by operation of law, or otherwise.     

 

  14. Miscellaneous.   (a) This Agreement will be binding upon and inure to the benefit of the Executive,  the Executive’s personal representatives and heirs and the Company and any  successor of the Company, but neither this Agreement nor any rights arising  hereunder may be assigned or pledged by the Executive.  The invalidity or  unenforceability of any provision of this Agreement shall not affect the validity  or enforceability of any other provision of this Agreement.   (b) The Company may withhold from any amounts payable under this Agreement  such Federal, state or local taxes as shall be required to be withheld pursuant to  any applicable law or regulation.   (c) The Executive’s failure to insist upon strict compliance with any provision hereof  shall not be deemed to be waiver of such provision or any other provision  thereof.   (d) The Executive and the Company acknowledge that the employment of the  Executive by the Company is “at will”, and, prior to the effective date, may be  terminated by either the Executive or the Company at any time. Except as stated  in Section 2, upon a termination of the Executive’s employment or upon the  Executive’s ceasing to be an officer of the Company, in each case, prior to the  effective date of this Agreement, there shall be no further rights under this  Agreement.  (e) Should any provision of this Agreement be adjudged to any extent invalid by any  competent tribunal, that provision will be deemed modified to the extent  necessary to make it enforceable. The invalidity or unenforceability of any  provision of this Agreement (or the Material Ancillary Agreements) shall in no  way affect the validity or enforceability of any other provision hereof.  (f) This Agreement will be governed and construed in accordance with the laws of  the Commonwealth of Pennsylvania.  (g) This Agreement together with the Material Ancillary Agreements constitutes the  entire agreement and understanding between the Company and the Executive  with respect to the subject matter hereof and merges and supersedes all prior  discussions, agreements and understandings between the Company and the  Executive with respect to such matters including under the Executive’s Change‐ in‐Control Agreement with the Company executed prior to the date hereof (if  any).  (h) This Agreement may be executed in one or more counterparts, which together  shall constitute a single agreement.        

 

  IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the date first above  written.              WEST PHARMACEUTICAL SERVICES, INC.          /s/ Silji Abraham    By:   /s/ Annette F. Favorite            Silji Abraham          Annette F. Favorite – SVP, CHROSalona Global Medical Device Corp.: Exhibit 4.1 - Filed by newsfilecorp.com

    

    

    THE WARRANTS REPRESENTED BY THIS CERTIFICATE WILL BE VOID AND OF NO VALUE UNLESS ‎EXERCISED AT ANY TIME DURING THE PERIOD COMMENCING ON THE DATE HEREOF AND ENDING AT ‎‎5:00 P.M. (ET) ON FEBRUARY 15, 2025.‎

    UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS ‎SECURITY MUST NOT ‎TRADE THE SECURITY BEFORE JUNE 16, 2022.‎

    THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT").  THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) IF THE SECURITIES HAVE BEEN REGISTERED IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT IN ACCORDANCE WITH RULE 144 THEREUNDER, IF APPLICABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING, OR OTHER EVIDENCE OF EXEMPTION, REASONABLY SATISFACTORY TO THE CORPORATION.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH U.S. SECURITIES LAWS.

    THIS WARRANT AND THE SECURITIES DELIVERABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES.  THIS WARRANT MAY NOT BE EXERCISED UNLESS THE WARRANT AND THE UNDERLYING SECURITIES HAVE BEEN REGISTERED UNDER THE U.S. SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS 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.

    	
                Number of Warrants: [♦]

            	
                Issue Date: February 15, 2022

            
	 	 
	
                Certificate No:  2022-02-15-[♦]

            	
                Expiry Date: February 15, 2025

            

    WARRANT CERTIFICATE

    SALONA GLOBAL MEDICAL DEVICE CORPORATION

    For value received, [registered name, registered address] (the "Holder") is the registered holder of that number of warrants (the "Warrants") of Salona Global Medical Device Corporation (the "Corporation") as set forth above, subject to adjustment in accordance with the terms hereof.

    1. Glossary. Unless otherwise defined herein, the following terms shall have the following meanings (and grammatical variations of such terms shall have corresponding meanings):

    (a) "1933 Act" means the United States Securities Act of 1933, as amended;

    (b) "Business Day" means a day other than a Saturday, Sunday or any other day on which the principal chartered banks ‎located in Toronto, Ontario or Del Mar, California are not open for business‎;

    (c) "Capital Reorganization" has the meaning ascribed thereto in Section 8(d);

    (d) "Corporation" has the meaning ascribed thereto on the face page of this Warrant Certificate;

    (e) "Current Market Price" means, at any date, the weighted average sale price per Share (or any other security in respect of which a determination of Current Market Price is being made) on the principal stock exchange on which the Shares (or any other security in respect of which a determination of Current Market Price is being made) are listed as ‎at such date or, if the Shares (or any other security in respect of which a determination of Current Market Price is being made) are not then listed on any such principal ‎stock exchange, in the over-the-counter market on which the Shares (or any other security in respect of which a determination of Current Market Price is being made) are listed or posted for trading during the 20 consecutive Trading Days ended the trading day prior to the date on which the Current Market Price must be determined; provided that the weighted average sale price will be determined by dividing the aggregate sale price of all Shares (or any other security in respect of which a determination of Current Market Price is being made) sold on the said exchange or, if not listed on said exchange, such market, as the case may be, during the said 20 consecutive Trading Days ended the trading day prior to the date on which the Current Market Price must be determined by the total number of Shares (or any other security in respect of which a determination of Current Market Price is being made) so sold; and provided further that if the Shares (or any other security in respect of which a determination of Current Market Price is being made) are not then listed on any stock exchange or over-the-counter market, then the Current Market Price will be determined by an independent third party valuator selected by the directors of the Corporation, acting reasonably and in good faith and who shall be a nationally recognized investment banking firm having appropriate valuation experience and who is independent of both parties, which determination shall be conclusive; and provided further that if the Shares (or any other security in respect of which a determination of Current Market Price is being made) are listed on more than one stock exchange or quotation system, the Current Market Price shall be calculated on the stock exchange or quotation system on which the volume of transactions for the Shares (or any other security in respect of which a determination of Current Market Price is being made) was the highest during such 20 consecutive Trading Days (provided, for the avoidance of doubt, if the Shares (or any other security in respect of which a determination of Current Market Price is being made) are trading on multiple stock exchanges and one or more quotation systems, such determination shall be made with respect to the stock exchanges on which such securities were trading);

    

    
        - 2 -

    

    (f) "Equity Shares" means the Shares and shares of any other class or series of the Corporation which may from time to time be authorized for issue if by their terms such shares confer on the holders thereof the right to participate in the distribution of assets upon the voluntary or involuntary liquidation, dissolution or winding up of the Corporation beyond a fixed sum or a fixed sum plus accrued dividends;

    (g) "Exercise Price" means $0.70 per Share or as may be adjusted as per Section 8 or Section 10;

    (h) "Expiry Date" means February 15, 2025;

    (i) "Expiry Time" means 5:00 pm (Eastern time) on the Expiry Date;

    (j) "Holder" has the meaning ascribed thereto on the face page of this Warrant Certificate;

    (k) "Issue Date" means February 15, 2022;

    (l) "Register" has the meaning ascribed thereto in Section 4;

    (m) "Rights Offering" has the meaning ascribed thereto in Section 8(b);

    (n) "Rights Period" has the meaning ascribed thereto in Section 8(b);

    (o) "Share" has the meaning ascribed thereto in Section 2;

    (p) "Share Reorganization" has the meaning ascribed thereto in Section 8(a);

    (q) "Special Distribution" has the meaning ascribed thereto in Section 8(c);

    (r) "successor corporation" has the meaning ascribed thereto in Section 10(a);

    (s) "Trading Day" means a day on which the principal exchange or over-the-counter market, as applicable, is open for trading; and

    (t) "Warrants" has the meaning ascribed thereto on the face page of this Warrant Certificate.

    

    
        - 3 -

    

    2. Warrants.  Each Warrant shall entitle the Holder to purchase one common share in the capital of the Corporation (each a "Share"), at the Exercise Price until the Expiry Time. Subject to the transfer conditions referred to in the legend(s) endorsed hereon and the terms and conditions of this Warrant Certificate, this Warrant and all rights hereunder are transferable, in whole or in part, by the Holder, upon surrender of this Warrant Certificate to the Corporation at the address shown on the attached Transfer Form or such other office as ‎may be specified by the Corporation, in a written notice given to the Holder, from time to time, with a properly completed and duly executed assignment in the form attached as Schedule "A" hereto, together with such other documents as the Corporation ‎may reasonably request and funds sufficient to pay any tax or governmental charges that may be imposed with respect to any applicable withholding or the issuance or delivery of the Shares then purchasable upon exercise of this Warrant in accordance with the terms of this Warrant, to any person other than the Holder. Such eligible assignee person includes an individual, corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.  Upon such compliance, surrender and delivery and, if required, such payment, the Corporation shall execute and deliver a new Warrant Certificate (or Warrant Certificates, if applicable) in the name of the assignee or assignees and in the denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant Certificate evidencing the portion of this Warrant, if any, not so assigned and this Warrant Certificate shall promptly be cancelled.

    3. Warrants Exercise Procedure.  The Warrants represented by this Warrant Certificate may be exercised in whole or in part at any time prior to the Expiry Time by surrendering the original of this Warrant Certificate at the offices of the Corporation set out in subsection 21(i) hereof together with a subscription form in the form attached as Schedule "B" hereto duly completed and executed, such additional documents as may be contemplated thereby, and a certified cheque, bank draft or money order in lawful money of Canada in the applicable amount payable to or to the order of the Corporation or by wire transfer as directed by the Corporation. 

    4. Register of Warrantholders. The Corporation shall cause a register (the "Register") to be kept in which shall be entered the names and addresses of all holders of the Warrants and the number of Warrants held by each of them.  The Corporation may treat the registered holder of any certificate representing Warrants as the absolute owner of the Warrants represented thereby for all purposes, and the Corporation shall not be affected by any notice or knowledge to the contrary except where the Corporation is required to take notice by statute or by order of a court of competent jurisdiction. 

    5. Partial Exercise. The Holder may subscribe for and purchase less than the full number of Shares entitled to be subscribed for and purchased hereunder.  In the event that the Holder subscribes for and purchases less than the full number of Shares entitled to be subscribed for and purchased under this Warrant Certificate prior to the Expiry Time, the Corporation shall issue a new Warrant Certificate to the Holder in substantially the same form as this Warrant Certificate with appropriate changes to reflect the unexercised balance of the Warrants.

    6. Delivery of Shares.  Within five (5) Business Days of receipt by the Corporation of this Warrant Certificate in accordance with, and the documents and payment noted in, Section 3, the Corporation will cause its transfer agent to deliver a certificate(s) or ownership statements under a direct registration system representing the Shares subscribed for and purchased by the Holder hereunder, and a replacement Warrant Certificate, if any.

    7. No Rights of Shareholders.  Nothing contained in this Warrant Certificate shall be construed as conferring upon the Holder any right or interest whatsoever as a holder of Shares of the Corporation or any other right or interest except as herein expressly provided.

    8. ‎Adjustment to Exercise Price.  The Exercise Price in effect at any time the Warrants remain outstanding is subject to adjustment from time to time in the events and in the manner provided as follows:

    (a) Share Reorganizations- If and whenever at any time after the date hereof and prior to the Expiry Date, the Corporation:

    (i) fixes a record date for the issue of, or issues, Shares or securities exchangeable or exercisable for or convertible into Shares to the holders of all or substantially all of the outstanding Shares as a stock dividend, or

    

    
        - 4 -

    

    (ii) fixes a record date for the distribution to, or makes a distribution to, the holders of all or substantially all of the outstanding Shares payable in Shares or securities exchangeable or exercisable for or convertible into Shares, or

    (iii) subdivides, re-divides or changes its outstanding Shares into a greater number of Shares, or reduces, combines or consolidates its outstanding Shares into a smaller number of Shares,

    (each such event a "Share Reorganization"), then, in each such event, the Exercise Price will be adjusted effective immediately on the earlier of the effective date or record date for the happening of a Share Reorganization, as the case may be, by multiplying the Exercise Price in effect immediately prior to such effective date or record date by a fraction, the numerator of which is the number of Shares outstanding on such effective date or record date, as the case may be, before giving effect to such Share Reorganization and the denominator of which is the number of Shares outstanding immediately after giving effect to such Share Reorganization (including, in the case where securities exchangeable or exercisable for or convertible into Shares are distributed, the number of Shares that would have been outstanding had all such securities been exchanged, exercised or converted into Shares on such effective date or record date).

    To the extent that any adjustment in the Exercise Price occurs pursuant to this Section 8(a)(i) or Section 8(a)(ii) as a result of the fixing by the Corporation of a record date for the distribution of securities exchangeable or exercisable for or convertible into Shares, the Exercise Price shall be readjusted immediately after the expiry of any relevant exchange, exercise or conversion right to the Exercise Price which would then be in effect based upon the number of Shares actually issued and remaining issuable after such expiry. To the extent that the Holder has not exercised its right to subscribe for and purchase Shares on or prior to the record date of such stock dividend or distribution or the effective date of a subdivision or consolidation or reduction, combination or consolidation, as the case may be, upon the exercise of such right thereafter, the Holder shall be entitled to receive and shall accept in lieu of the number of Shares then subscribed for and purchased by the Holder, at the Exercise Price determined in accordance with this Section 8(a), the aggregate number of Shares that the Holder would have been entitled to receive as a result of such Share Reorganization if, on such record date or effective date, as the case may be, the Holder had been the holder of record of the number of Shares so subscribed for and purchased prior to giving effect to such Share Reorganization.

    (b) Rights Offerings- If and whenever at any time after the date hereof and prior to the Expiry Date, the Corporation fixes a record date for the issue or distribution of rights, options or warrants to the holders of all or substantially all of its outstanding Shares under which such holders are entitled to subscribe for or purchase Shares or securities exchangeable or exercisable for or convertible into Shares, where:

    (i) the right to subscribe for or purchase Shares, or the right to exchange securities for or convert securities into Shares, expires not more than 90 days after the record date of such issuance (the period from the record date to the date of expiry being herein in this Section 8(b) called the "Rights Period"), and

    (ii) the cost per Share during the Rights Period (or, in the case of securities exchangeable or exercisable for or convertible into Shares, an exchange, exercise or conversion price per Share) is less than 95% percent of the Current Market Price of the Shares immediately prior to the record date,

    (each such event a "Rights Offering"), then the Exercise Price will be adjusted effective immediately after the record date for such Rights Offering to a price determined by multiplying the Exercise Price in effect on such record date by a fraction:

    (i) the numerator of which is the aggregate of:

    

    
        - 5 -

    

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

    (B) a number determined by dividing either:

    (1) where the event giving rise to the application of this Section 8(b) was the issue or distribution of rights, options or warrants to the holders of Shares under which such holders are entitled to subscribe for or purchase additional Shares, the product of the maximum number of Shares so offered and the price at which such Shares are offered, or

    (2) where the event giving rise to the application of this Section 8(b) was the issue or distribution of rights, options or warrants to the holders of Shares under which such holders are entitled to subscribe for or purchase securities exchangeable or exercisable for or convertible into Shares, the product of the exchange, exercise or conversion price of the securities so offered and the maximum number of Shares for or into which the securities so offered pursuant to the Rights Offering may be exchanged, exercised or converted, as the case may be,

    by the Current Market Price of the Shares immediately prior to the record date for the Rights Offering; and

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

    Any Shares owned by or held for the account of the Corporation or any subsidiary of the Corporation will be deemed not to be outstanding for the purpose of any such computation.

    If by the terms of the rights, options or warrants referred to in this Section 8, there is more than one purchase, conversion or exchange price per Share, the aggregate price of the total number of additional Shares offered for subscription or purchase, or the aggregate conversion, exercise or exchange price of the convertible securities exchangeable so offered, will be calculated for purposes of the adjustment on the basis of (a) the lowest purchase, conversion, exercise or exchange price per Share, as the case may be, if such price is applicable to all Shares which are subject to the rights, options or warrants, and (b) the average purchase, conversion or exchange price per Share, as the case may be, if the applicable price is determined by reference to the number of Shares acquired.

    To the extent that any adjustment in the Exercise Price occurs pursuant to this Section 8 as a result of the fixing by the Corporation of a record date for the distribution of rights, options or warrants referred to in this Section 8, the Exercise Price will be readjusted immediately after the expiration of any relevant exchange, conversion or exercise right to the Exercise Price which would then be in effect based upon the number of Shares actually issued and remaining issuable after such expiration, and will be further readjusted in such manner upon expiration of any further such right. To the extent that such Rights Offering is not ultimately so made, the Exercise Price shall then be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed.

    (c) Special Distributions- If and whenever at any time after the date hereof and prior to the Expiry Time, the Corporation fixes a record date for the issue or the distribution to the holders of all or substantially all its Shares of:

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

    

    
        - 6 -

    

    (ii) rights, options or warrants to acquire shares or securities exchangeable for or convertible into shares or property or other assets of the Corporation;

    (iii) evidence of indebtedness of the Corporation; or

    (iv) any property or other assets of the Corporation;

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

    (i) the numerator of which is:

    (A) the product of the number of Shares outstanding on such record date and the Current Market Price of the Shares immediately prior to the record date; less

    (B) the aggregate fair market value (as determined by a nationally or internationally recognized and independent firm of chartered accountants as may be selected in good faith by action by the directors of the Corporation, and subject to the approval of any stock exchange on which the Shares may then be listed, where required) to the holders of the Shares of such securities or property or other assets so issued or distributed in the Special Distribution; and

    (ii) the denominator of which is the number of Shares outstanding on such record date multiplied by the Current Market Price of the Shares immediately prior to the record date.

    Any Shares owned by or held for the account of the Corporation or any subsidiary of the Corporation will be deemed not to be outstanding for the purpose of any such computation. To the extent that such Special Distribution is not ultimately so made, the Exercise Price shall then be readjusted to the Exercise Price which would then be in effect if such record date had not been fixed.

    (d) Adjustment to Exercisable Securities based on Capital Reorganizations- If and whenever at any time after the date hereof and prior to the Expiry Date there is:

    (i) a reclassification or redesignation of the Shares outstanding at any time or change or exchange of the Shares into other shares or other securities or that results in the Shares ceasing to exist or any other capital reorganization, including an arrangement;

    (ii) a consolidation, amalgamation, arrangement or merger of the Corporation with or into any other corporation or other entity (other than a consolidation, amalgamation, arrangement or merger which does not result in any reclassification or redesignation of the outstanding Shares or a change or exchange of the Shares into other shares); or

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

    (each such event being called a "Capital Reorganization"), the Warrants shall remain outstanding and the Holder, upon exercising any of the Warrants after the effective date of such Capital Reorganization, will be entitled to receive in lieu of the number of Shares to which such Holder was theretofore entitled upon such exercise, the aggregate number of shares or other securities or other property (including cash) which such Holder would have been entitled to receive as a result of such Capital Reorganization if, on the effective date thereof, the Holder had been the registered holder of the number of Shares to which such Holder was theretofore entitled upon exercise of such Warrants. If necessary, as a result of any Capital Reorganization, appropriate adjustments will be made in the application of the provisions set forth in this Section 8 with respect to the rights and interests thereafter of the Holder to the end that the provisions set forth in this Section 8 will thereafter correspondingly be made applicable as nearly as may reasonably be in relation to any shares, other securities or other property thereafter deliverable upon the exercise hereof.

    

    
        - 7 -

    

    (e) Adjustment to Exercisable Shares on Certain Events-If at any time after the date hereof and prior to the Expiry Date any adjustment in the Exercise Price shall occur as a result of:

    (i) an event referred to in Section 8(a);

    (ii) the fixing by the Corporation of a record date for an event referred to in Section 8(b); or

    (iii) the fixing by the Corporation of a record date for a Special Distribution referred to in Section 8(c) if such event constitutes the issue or distribution of Equity Shares, or securities exchangeable for or convertible into Equity Shares at an exchange or conversion price per Equity Share less than the Current Market Price immediately prior to the record date or rights, options or warrants to acquire Equity Shares at an exercise, exchange or conversion price per Equity Share less than the Current Market Price immediately prior to the record date;

    then, the number of Shares issuable upon the subsequent exercise of any of the Warrants shall be simultaneously adjusted by multiplying the number of Shares issuable upon the exercise of a Warrant immediately prior to such adjustment by a fraction which shall be the reciprocal of the fraction employed in the adjustment of the Exercise Price. To the extent any adjustment in subscription rights occurs pursuant to this Section 8(e) as a result of a distribution of exchangeable, exercisable or convertible securities referred to in Section 8(a) or as a result of the fixing by the Corporation of a record date for the distribution of rights, options or warrants referred to in Section 8(b), the number of Shares issuable upon exercise of a Warrant shall be readjusted immediately after the expiration of any relevant exchange, conversion or exercise right to the number of Shares which would be issuable based upon the number of Shares actually issued and remaining issuable immediately after such expiration, and shall be further readjusted in such manner upon expiration of any further such right. To the extent that any adjustment in subscription rights occurs pursuant to this Section 8(e) as a result of the fixing by the Corporation of a record date for the distribution of exchangeable, exercisable or convertible securities or rights, options or warrants referred to in Section 8(c), the number of Shares issuable upon exercise of a Warrant shall be readjusted immediately after the expiration of any relevant exchange, conversion or exercise right to the number which would be issuable pursuant to this Section 8(e) if the fair market value of such securities or such rights, options or warrants had been determined for purposes of the adjustment pursuant to this Section 8(e) on the basis of the number of Shares issued and remaining issuable immediately after such expiration, and shall be further readjusted in such manner upon expiration of any further such right.

    (f) Certificate as to Adjustment.

    (i) As promptly as reasonably practicable following any adjustment of the Exercise Price, the Corporation shall furnish to the Holder a certificate of an executive officer setting forth in reasonable detail such adjustment and the facts upon which it is based and certifying the calculation thereof.

    (ii) As promptly as reasonably practicable following the receipt by the Corporation of a written request by the Holder, the Corporation shall furnish to the Holder a certificate of an executive officer certifying the Exercise Price then in effect and the number of Shares or the amount, if any, of other shares of stock, securities or assets then issuable upon exercise of the Warrant.

    

    
        - 8 -

    

    9. Rules Regarding Calculation of Adjustment of Exercise Price.  The following rules shall apply to the calculation of adjustment of the Exercise Price:

    (a) If more than one subsection of Section 8 is applicable to a single event, the subsection shall be applied that produces the largest adjustment and no single event shall cause an adjustment under more than one subsection of Section 8 so as to result in duplication.

    (b) The adjustments provided for in Section 8 are cumulative and will apply to successive subdivisions, consolidations, dividends, distributions and other events resulting in any adjustment under the provisions of such section and will, in the case of adjustments to the Exercise Price, be computed to the nearest one-tenth of one cent and will be made successively whenever an event referred to therein occurs, subject to the following subsections of this Section 8.

    (c) If at any time a dispute arises with respect to adjustments provided for in Section 8, such dispute will be conclusively determined by the auditors of the Corporation or if they are unable or unwilling to act, by such other nationally or internationally recognized and independent firm of chartered accountants as may be selected in good faith by action by the directors of the Corporation and any such determination, where required, will be binding upon the Corporation, the Holder and shareholders of the Corporation, absent manifest error. The Corporation will provide such auditors or accountants with access to all necessary records of the Corporation.

    (d) In case the Corporation after the date hereof takes any action affecting the Shares, other than action described in Section 8, which would reasonably be expected to materially affect the rights of the Holder, the Exercise Price will be adjusted in such manner, if any, and at such time, by action by the directors of the Corporation, acting reasonably, but subject in all cases to the approval of any stock exchange on which the Shares may then be listed, where required, and any necessary regulatory approval.

    (e) If the Corporation sets a record date to determine the holders of the Shares for the purpose of entitling them to receive any dividend or distribution or sets a record date to take any other action and, thereafter and before the distribution to such shareholders of any such dividend or distribution or the taking of any other action, decides not to implement its plan to pay or deliver such dividend or distribution or take such other action, then no adjustment in the Exercise Price will be required by reason of the setting of such record date.

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

    (g) As a condition precedent to the taking of any action which would require any adjustment to this Warrant Certificate, including the Exercise Price, the Corporation must take any corporate action which may be necessary in order that the Corporation have unissued and reserved in its authorized capital and may validly and legally issue as duly authorized, validly issued, fully paid and non-assessable all the shares or other securities which the Holder is entitled to receive on the full exercise thereof in accordance with the provisions hereof free from all taxes, liens and charges created by the Corporation in respect of the issue thereof.

    (h) The Corporation will from time to time, immediately after the occurrence of any event which requires an adjustment or readjustment as provided in Section 8, forthwith give notice to the Holder specifying the event requiring such adjustment or readjustment and the results thereof, including the resulting Exercise Price.

    (i) The Corporation covenants to and in favour of the Holder that so long as this Warrant Certificate remains outstanding, it will give notice to the Holder of its intention to fix a record date for any event referred to in Section 8 and, in each case, such notice must specify the particulars of such event and the record date and the effective date for such event; provided that the Corporation is only required to specify in such notice such particulars of such event as have been fixed and determined on the date on which such notice is given. Such notice shall be given not less than 21 days prior to each such applicable record date or effective date.

    

    
        - 9 -

    

    (j) No adjustment of the Exercise Price shall be made if the amount of such adjustment shall ‎be less than 1% of the Exercise Price in effect immediately prior to the event giving rise to ‎the adjustment, provided, however, that in such case any adjustment that would otherwise ‎be required then to be made shall be carried forward and shall be made at the time of and ‎together with the next subsequent adjustment which, together with any adjustment so carried ‎forward, shall amount to at least 1% of the Exercise Price.‎

    10. Consolidation and Amalgamation. 

    (a) In the case of the Corporation entering into a transaction whereby all or substantially all of its undertaking, property and assets would become the property of any other corporation and/or its securities exchanged for the securities of another corporation (herein called a "successor corporation") whether by way of reorganization, reconstruction, consolidation, amalgamation, arrangement, merger, transfer, sale, disposition or otherwise, the successor corporation shall be bound by all of the provisions hereof including the due and punctual performance of all covenants of the Corporation and forthwith following the occurrence of such event, the successor corporation resulting from such reorganization, reconstruction, consolidation, amalgamation, arrangement merger, transfer, sale, disposition or otherwise (if not the Corporation), shall expressly assume, by supplemental certificate satisfactory in form to the Holder, acting reasonably, and executed and delivered by the successor corporation to the Holder, the due and punctual performance and observance of this Warrant Certificate to be performed and observed by the Corporation and these securities and the terms set forth in this Warrant Certificate will be a valid and binding obligation of the successor corporation entitling the Holder, as against the successor corporation, to all the rights of the Holder under this Warrant Certificate.

    (b) Whenever the conditions of Section 10(a) shall have been duly observed and performed the successor corporation shall possess, and from time to time may exercise, each and every right and power of the Corporation under this Warrant Certificate in the name of the Corporation or otherwise and any act or proceeding by any provision hereof required to be done or performed by any director or officer of the Corporation may be done and performed with like force and effect by the like directors or officers of the successor corporation.

    11. Fractional Shares.  To the extent that a Holder is entitled to receive on the exercise or partial exercise of the Warrants hereunder a fraction of a Share, such right may be exercised in respect of such fraction only in combination with another Warrant which in the aggregate will entitle the Holder to receive a whole number of Shares.

    12. Legending of Shares.  The Holder understands and acknowledges that the certificate or certificates representing the Shares issued before the date that is four months and one day from the Issue Date upon exercise of the Warrants, shall be impressed with a legend in the following form:

    ‎"UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS ‎SECURITY MUST NOT TRADE THE SECURITY BEFORE JUNE 16, 2022."‎

    13. U.S. Resale Restrictions, Legending of Certificates

    (a) Neither the Warrants represented hereby nor the Shares issuable upon exercise of the Warrants have been registered under the 1933 Act or the securities laws of any state of the United States. The Warrants represented hereby may not be exercised in the United States or by or on behalf of a person in the United States or a U.S. person unless exercised pursuant to exemptions from registration under the 1933 Act and all applicable state securities laws. Further, the Shares may not be offered, sold or otherwise transferred in the United States or to or for the account or benefit of a U.S. person or a person in the United States, unless registered under the 1933 Act and applicable state securities laws, or an exemption from registration is available. The terms "United States" and "U.S. person" are as defined in Regulation S under the 1933 Act.

    

    
        - 10 -

    

    (b) Except as otherwise provided in paragraph (c) below, any certificate or other instrument ‎representing Shares issued upon exercise of this Warrant will bear a legend substantially in ‎the following form:‎

    "THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT").  THESE SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY (A) TO THE CORPORATION, (B) IF THE SECURITIES HAVE BEEN REGISTERED IN COMPLIANCE WITH THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, (C) IN COMPLIANCE WITH THE EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE U.S. SECURITIES ACT IN ACCORDANCE WITH RULE 144 THEREUNDER, IF APPLICABLE, AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS, OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY APPLICABLE STATE LAWS AND REGULATIONS GOVERNING THE OFFER AND SALE OF SECURITIES, AND THE HOLDER HAS, PRIOR TO SUCH SALE, FURNISHED TO THE CORPORATION AN OPINION OF COUNSEL OF RECOGNIZED STANDING, OR OTHER EVIDENCE OF EXEMPTION, REASONABLY SATISFACTORY TO THE CORPORATION.  HEDGING TRANSACTIONS INVOLVING THE SECURITIES REPRESENTED HEREBY MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH U.S. SECURITIES LAWS."

    If the Holder indicates that the Holder is exercising the Warrants and purchasing the underlying Shares in an offshore transaction pursuant to Rule 903 of Regulation S under the 1933 Act by checking Box (A) of the Warrant Certificate Subscription Form, the following language shall be included as the penultimate sentence of the foregoing legend:

    "FURTHERMORE, THE SECURITIES REPRESENTED BY THIS CERTIFICATE CANNOT BE THE SUBJECT OF HEDGING TRANSACTIONS UNLESS SUCH TRANSACTIONS ARE CONDUCTED IN COMPLIANCE WITH THE U.S. SECURITIES ACT."

    (c) The legend requirements of paragraph (b) above shall not apply as to any particular Share: (i) when and so long as such security shall have been effectively registered under the 1933 Act and is disposed of pursuant thereto; (ii) when the Corporation shall have received an opinion of counsel of recognized standing in form and substance reasonably acceptable to it that such Share may be sold to the public without registration thereof under the 1933 Act or the securities laws of any applicable states of the United States, it being understood that the Corporation will pay all reasonable costs in connection with such opinion; or (iii) if, at the time of exercise of the Warrants, the Corporation qualifies as a Foreign Private Issuer (as such term is defined in Rule 405 under the 1933 Act) and the Holder indicates that the Holder is exercising the Warrants and purchasing the underlying Shares in an offshore transaction pursuant to Rule 903 of Regulation S under the 1933 Act by checking Box (A) of the Warrant Certificate Subscription Form.

    (d) The Corporation has determined that it ceased to qualify as a Foreign Private Issuer (as such term is defined in Rule 405 under the 1933 Act) ‎as of August 31, 2019 (being the last business day of the second fiscal quarter of the fiscal year ended February 29, ‎‎2020), and ceased to be eligible to rely on the rules and forms available to Foreign Private Issuers ‎on February 29, ‎‎2020.‎ Rule 905 of Regulation S provides in substance that any "restricted securities" that are equity securities of ‎a Domestic Issuer (as such term is defined in Rule 902(e) of Regulation S.) (including an issuer that no longer qualifies as a Foreign Private Issuer) will ‎continue to be deemed to be restricted securities notwithstanding that they were acquired in a ‎resale transaction pursuant to Rule 901 or 904 of Regulation S, and, as interpreted by Staff at the United States Securities and Exchange Commission‎, Rule 905 applies to equity securities that, at the time of issuance were those of a Domestic ‎Issuer.‎ By operation of Rule 905 of Regulation S, any Securities that are resold outside the United States in ‎compliance with the requirements of Rule 901 or Rule 904 of Regulation S will continue to be ‎‎"restricted securities" and will continue to be subject to the requirement that they be represented ‎by a physical certificate or other instrument imprinted with a U.S. restrictive legend.‎

    

    
        - 11 -

    

    (e) The Corporation has previously been an issuer with no or nominal operations and no or ‎nominal assets other than cash and cash equivalents, with the result that Rule 144 under the ‎U.S. Securities Act will only be available for resales of the Warrants or Shares issued upon ‎the exercise of the Warrants if all of the conditions prescribed by Rule 144(i) under the U.S. ‎Securities Act are satisfied at the time of the resale transaction, and (ii) the Corporation is not ‎obligated to make Rule 144 under the U.S. Securities Act available for resales of the ‎Warrants or Shares issued upon the exercise of the Warrants.‎

    14. Change; Waiver.  Subject to the approval of the TSX Venture Exchange (or such other stock exchange on which the Shares are listed or posted for trading), the provisions of these Warrants may from time to time be amended, modified or waived, if such amendment, modification or waiver is in writing and consented to in writing by the Corporation and the Holder.

    15. No Obligation to Purchase.  Nothing herein contained or done pursuant hereto shall obligate the Holder to purchase or pay for or the Corporation to issue any Shares except those Shares in respect of which the Holder shall have exercised its right to purchase in the manner provided hereunder.

    16. Shares to be Reserved.  

    (a) The Corporation covenants that (i) so long as any Warrants evidenced hereby remain outstanding, it shall reserve and there shall remain unissued out of its authorized capital a sufficient number of Shares to satisfy the right of purchase provided for herein should the Holder determine to exercise its rights in respect of all the Shares available for purchase and issuance under outstanding Warrants, and (ii) all Shares which shall be issued upon the due exercise of the Holder's right pursuant to the provisions hereof, be duly authorized, validly issued, fully paid and non-assessable common shares in the capital of the Corporation and free from all taxes, liens and charges created by the Corporation in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue). The Corporation will take all such reasonable action as may be necessary to ensure that such Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the TSX Venture Exchange or such other stock exchange on which the Shares may then be listed, other than as a result of misrepresentations by the Holder.

    (b) Except and to the extent as waived or consented to by the Holder, the Corporation shall not take any action with the intention of avoiding the observance or performance of any of the terms of this Warrant Certificate, and will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant Certificate against impairment.  Without limiting the generality of the foregoing, the Corporation will (i) take all such action as may be necessary or appropriate in order that the Corporation may validly and legally issue fully paid and nonassessable Shares upon the exercise of this Warrant Certificate and (ii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Corporation to perform its obligations under this Warrant Certificate.

    (c) Before taking any action which would result in an adjustment in the number of Shares for which this Warrant Certificate is exercisable, the Corporation shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

    

    
        - 12 -

    

    17. Lost Certificate.  The Corporation covenants that upon receipt by the Corporation of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant Certificate, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant Certificate, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant, if mutilated, the Corporation will make and deliver a new Warrant Certificate of like tenor and dated as of such cancellation, in lieu of such Warrant.

    18. Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder's rights, powers or remedies. Without limiting any other provision of this Warrant Certificate, if the Corporation willfully and knowingly fails to comply with any provision of this Warrant Certificate, which results in any material damages to the Holder, the Corporation shall pay to the Holder such amounts as shall be sufficient to cover any reasonable costs and expenses including, but not limited to, reasonable legal fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

    19. Limitation of Liability.  No provision hereof, in the absence of any affirmative action by the Holder to exercise this Warrant Certificate to purchase Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Shares or as a shareholder of the Corporation, whether such liability is asserted by the Corporation or by creditors of the Corporation.

    20. Remedies.  The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant Certificate.  The Corporation agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant Certificate and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

    21. General.

    (a) The headings in this Warrant Certificate are for reference only and do not constitute terms of the Warrant Certificate.

    (b) Whenever the singular or masculine is used in this Warrant Certificate the same shall be deemed to include the plural or the feminine or the body corporate as the context may require.

    (c) Subject to applicable securities laws, this Warrant Certificate and the rights and obligations evidenced hereby shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns, provided that it ‎shall not be assigned by the Corporation without the prior consent of the Holder‎, which shall not be unreasonably withheld or delayed. The provisions of this Warrant Certificate are intended to be for the benefit of any Holder from time to time of this Warrant Certificate and shall be enforceable by the Holder.

    (d) This Warrant Certificate may be modified or amended or the provisions hereof waived with the written consent of the Corporation and the Holder.

    (e) Wherever possible, each provision of this Warrant Certificate shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant Certificate shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant Certificate.

    (f) Time shall be of the essence of this Warrant Certificate.

    (g) This Warrant shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein, without reference to its principles governing the choice or conflict of laws.  The Corporation and the Holder hereby irrevocably attorn and submit to the exclusive jurisdiction of the courts of the Province of Ontario, with respect to any dispute related to or arising from this Warrant Certificate.

    

    
        - 13 -

    

    (h) All references herein to monetary amounts are references to lawful money of Canada.

    (i) If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day.

    (j) This Warrant Certificate may be delivered by electronic transmission in PDF, or other legally permissible electronic signature, and in such ‎cases will be deemed to be an original, and all of which together will be deemed to be one and the same document.‎

    (k) All notices or other communications to be given to the Holder by the Corporation under this Warrant Certificate shall be delivered by hand, courier, ordinary prepaid mail, or electronic mail and, if delivered by hand, shall be deemed to have been given on the delivery date, if delivered by ordinary prepaid mail shall be deemed to have been given on the fifth day following the delivery date and, if sent by electronic mail, on the date of transmission if sent before 5:00 p.m. (local time where the notice is received) on a Business Day or, if such day is not a Business Day, on the first Business Day following the date of transmission.

    Notices to the Holder shall be addressed to the address of the Holder set out in this Warrant Certificate.

    Notices to the Corporation shall be addressed to:

    Salona Global Medical Device Corporation
3330 Caminito Daniella

    Del Mar, California, 92014

    Attn: ‎ Chief Financial Officer ‎

    Email: ‎ info@salonaglobal.com

    Each of the Corporation and the Holder may change its address for service by notice in writing to the other of them specifying its new address for service under this Warrant Certificate.

     [THE REMAINDER OF THIS PAGE IS LEFT INTENTIONALLY BLANK.]

    

    IN WITNESS WHEREOF the Corporation has caused this Warrant Certificate to be signed by its duly authorized officer on ___________________, 2022.

    	
                SALONA GLOBAL MEDICAL DEVICE CORPORATION

                 

                By:    ______________________________________________
Authorized Signatory

            

    The digital signature above shall be deemed to constitute an original signature to this Warrant Certificate.

    

    SCHEDULE "A"

    TRANSFER FORM

    TO:‎ SALONA GLOBAL MEDICAL DEVICE CORPORATION (the "Corporation")‎

    FOR VALUE RECEIVED, the undersigned (the "Transferor") hereby sells, assigns and transfers to ______________________(name) (the "Transferee"), ______________________________________________ (address), 

    ___________ Warrants of the Corporation registered in the name of the undersigned represented by the Warrant Certificate attached and irrevocably appoints ________________________ the attorney of the undersigned to transfer the said securities on the books or register with full power of substitution.

    Unless there is an effective registration statement registering the Warrants for re-sale under the United States Securities Act of 1933, as amended (the "1933 Act") and all applicable state securities laws, the undersigned hereby certifies that (check one):

    ☐ (a) the transfer of these securities is not being made to, and the offer of these securities was not made to or for the account or benefit of, and the person named above is not (i) a U.S. person, or (ii) a person in the United States; OR

    ☐ (b) if the Transferee is (i) a U.S. person, (ii) a person in the United States, or (iii) any person who is acting for the account or benefit of a U.S. person or a person in the United States, the transfer of the Warrants is being completed pursuant to an exemption from the registration requirements of the 1933 Act and the securities laws of all applicable states of the United States, in which case the Transferor has delivered or caused to be delivered a written opinion of United States legal counsel of recognized standing in form and substance reasonably acceptable to the Corporation to the effect that the transfer of the Warrants is exempt from the registration requirements of the 1933 Act, it being understood that the Corporation will pay all reasonable costs in connection with such opinion.

    It is understood that the Corporation may require additional evidence necessary to verify the foregoing.

    "U.S. person" and "United States" have the respective meanings assigned in Regulation S under the 1933 Act.

    DATED this _____ day of _____________________,             .

    Per:________________________________________

    Name:______________________________________

    Address:____________________________________

    Title:_______________________________________

    Phone:______________________________________

    Email Address: ______________________________

    

    
        - 2 -

    

    Instructions for Transfer:

    1. The signature of the registered holder must be signature guaranteed by a Canadian chartered bank, Medallion Guarantee or other entity acceptable to the Trustee.

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

    

    SCHEDULE "B" 

    WARRANT CERTIFICATE SUBSCRIPTION FORM

    TO:‎ SALONA GLOBAL MEDICAL DEVICE CORPORATION (the "Corporation")‎

    Capitalized terms used herein have the meanings ascribed thereto in the warrant certificate (the "Warrant Certificate") attached hereto. The undersigned Holder hereby irrevocably elects to exercise the Warrants granted by the Corporation pursuant to the Warrant Certificate for the number of Shares (or other property or securities contemplated in the Warrant Certificate) as set forth below:

    (a) Number of Shares to be acquired                   ______________________

    (b) Exercise Price (per Share) $_____________________

    (c) Aggregate Exercise Price $_____________________

    The Holder hereby tenders a certified cheque, bank draft or cash for such aggregate Subscription Price and directs the Shares to be registered and certificates therefor to be issued as directed below. The undersigned hereby represents, warrants and certifies as follows (one of the following must be checked):

    (A) ☐ The undersigned (i) is not in the United States or acting for the account or benefit of a person in the United States, (ii) is not, and is not exercising the Warrants ‎for the account or benefit of, a "U.S. person", (iii) did not execute or deliver this exercise form in ‎the United States, and (iv) has in all other aspects complied with the terms of Regulation S of the ‎United States Securities Act of 1933, as amended the ("1933 Act") or any successor rule or ‎regulation of the United States Securities and Exchange Commission in effect; or

    (B) ☐ The ‎undersigned is tendering with this exercise form a written opinion of counsel of recognized standing in form and substance reasonably acceptable to the Corporation to the effect that the ‎Shares to be delivered upon exercise of the Warrants are exempt from the registration requirements of the 1933 Act and the securities laws of all applicable states of the United States, it being understood that the Corporation will pay all reasonable costs in connection with such opinion.

    (C) ☐ The Warrants and the Shares to be delivered upon exercise of the Warrants have been registered under the 1933 Act and the securities laws of all applicable states of the United States.

    The term "U.S. person" is as defined in Regulation S under the 1933 Act and includes, ‎‎but is not limited to, any natural person resident in the United States and any partnership or ‎‎corporation organized or incorporated under the laws of the United States. "United States" means ‎‎the United States of America, its territories and possessions, any state of the United States and the ‎‎District of Columbia.‎

    If any Shares represented by this Warrant Certificate are not being exercised, a new Warrant Certificate will be issued and delivered with the Share certificate(s) or ownership statements under a direct registration system, as the case may be.

    Please issue and deliver a certificate or ownership statements under a direct registration system for the Shares being purchased registered as follows:

    
        	
                    NAME OF REGSITERED HOLDER:

                	
                     

                
	
                     

                	
                    (please print)

                

    

    

    

    
        - 2 -

    

    

    
        	
                    ADDRESS OF REGSITERED HOLDER:

                	
                     

                
	
                     

                	
                     

                
	
                    DELIVERY 
(E-MAIL):

                	
                     

                
	
                     

                	
                     

                

    

    INSTRUCTIONS:

    1. The registered holder of a Warrant may exercise its right to acquire Shares by completing and surrendering this Subscription Form and the Warrant Certificate representing the Warrants being converted to the Corporation, together with the aggregate amount of the Exercise Price for the Shares as provided for in the Warrant Certificate.  Certificates representing the Shares to be acquired on exercise will be sent by to the address(es) above within five Business Days after the receipt of all required documentation, subject to the terms of the Warrant Certificate.

    2. If this Subscription Form indicates that the Shares are to be issued to a person or persons other than the registered holder of the Warrants to be converted: (i) the signature of the registered holder on this Subscription Form must be medallion guaranteed by an authorized officer of a chartered bank, trust corporation or an investment dealer who is a member of a recognized stock exchange, and (ii) the registered holder must pay to the Corporation all applicable taxes and other duties.

    3. If this Subscription Form is signed by a trustee, executor, administrator, custodian, guardian, attorney, officer of a corporation or any other person acting in a fiduciary or representative capacity, this Subscription Form must be accompanied by evidence of authority to sign satisfactory to the Corporation.

    DATED this _______ day of __________________________________, ___________________.

    	
                
 

            	
                 

            	
                ____________________________________________
(Signature)

            
	
                ____________________________________________
Signature of Witness
[Please Note Instruction 2]

                ____________________________________________
Print name of Witness

                 

            	
                )
)
)
)
)
)
)
)
)
)
)
)
)
)
)

            	
                ____________________________________________
Signature of registered holder or Signatory thereof

____________________________________________
If applicable, print Name and Office of Signatory

____________________________________________
Print Name of registered holder as on certificate

                ____________________________________________
Street Address

                ____________________________________________
City, Province/State and Postal/ZIP Code

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00340-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00340-of-00352.parquet"}]]