Document:

EX-10.16

 Exhibit 10.16 

“TPC” AGREEMENT NO. 720-493141 

TECHNOLOGY PARTNERSHIPS CANADA 

THE PROJECT MERCURY 
 This Agreement
made 
  

					
	Between:	  	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA

as represented by the Minister of Industry
	  	
		  	(hereinafter referred to as “the Minister”)	  	
			
	And:	  	D-WAVE SYSTEMS INC, a corporation duly incorporated under the laws of Canada having its head office located at 320 - 1985 West Broadway, Vancouver, British
Columbia V6J 4Y3	  	
			
		  	(hereinafter referred to as “the Proponent”)	  	

 WHEREAS in a context in which innovation is essential in an increasingly knowledge-based economy, the Minister
is charged with the achievement of Canada’s objectives of increasing economic growth, creating jobs and wealth, and supporting sustainable development; and 

WHEREAS the Technology Partnerships Canada (“TPC”) Program is specifically designed to promote the above objectives by means of
strategically investing in research, development and innovation in order to encourage private sector investment, and so maintain and grow the technology base and technological capabilities of Canadian industry throughout the country; and 

WHEREAS the Minister agrees to make a TPC investment in the Proponent’s project described in this Agreement, considering that: 

 

	(i)	 the Project will enhance Canadian national capability in the field of quantum information technology;

  

	(ii)	 the resulting technologies are expected to offer significant performance advantages in the field of high
performance computing; 

  

	(iii)	 the Project will strengthen the Greater Vancouver high-technology cluster, and 

 

	(iv)	 the Project is expected to generate significant jobs and leverage additional R&D activity in Canada;

  
 CONFIDENTIAL AND
PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

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 AND WHEREAS the entering into this Agreement is not contingent upon any export performance on
the part of the Proponent. 
 NOW, THEREFORE, in consideration of their respective obligations set out below, the parties hereto agree as
follows. 
 Article 1 - Deadline for receipt of signed agreement 
  

	1.1	 This Agreement must be signed by the Proponent and received by the Minister within thirty (30) days
of its signature on behalf of the Minister, failing which it will be null and void. 

 Article 2 - Documents forming part of this
Agreement 
  

	2.1	 The following documents form an integral part of this Agreement: 

These Articles of Agreement 

Schedule 1 - TPC General Conditions 

Schedule 2 - The Project 

Schedule 3 - Claims and TPC Project Cost Principles 

Schedule 4 - Contractual Benefits 

Schedule 5 - Reporting Requirements 

Schedule 6 - Project Fact Sheet for News release 

Schedule 7 - Special Purpose Equipment 
  

	2.2	 In the event of conflict or inconsistency, the order of precedence amongst the documents forming part of
this Agreement shall be: 

 These Articles of Agreement, 

Schedule 1 - General Conditions 

Schedule 2 - The Project 
 Other
Schedules 
 Article 3 - The Proponent’s Obligations 
  

	3.1	 The Proponent will carry out the Project Mercury (“the Project”) as described in
Schedule 2, will make claims in accordance with Schedule 3, will provide the benefits mentioned in Schedule 4, will issue the reports required under Schedule 5 and will fulfil all of its other obligations hereunder, in a diligent and professional
manner using qualified personnel. 

  

	3.2	 The Proponent shall ensure that the Project is completed on or before 31 December

  
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2007 (“Project Completion Date”), unless otherwise agreed to in writing by the Minister. 

Article 4 - The Contribution 
  

	4.1	 Subject to all the other provisions of this Agreement, the Minister will make a Contribution to the
Proponent in respect of the Project, of the lesser of: 

  

	 	(a)	 30 per cent of the Eligible Costs; and  

 

	 	(b)	 $9,512,000. 

  

	4.2	 The Minister will not contribute to any Eligible Costs incurred by the Proponent prior to
1 August 2004 nor after the Project Completion Date, unless otherwise agreed to in writing by the Minister. 

  

	4.3	 Unless the Minister agrees otherwise in writing, the amount of the Contribution will not exceed the
following amounts in the relevant Government Fiscal Years of the Project as follows: 

 2004/05: $ 1,307,000

 2005/06: $ 2,091,000 

2006/07: $ 3,545,000 

2007/08: $ 2,569,000 

The Minister will consider any request to reprofile these funds, but the Minister will have no obligation to pay any greater amount in any of
the said Fiscal Years except to the extent that such reprofiling will have been agreed to by the Minister. 
 Article 5 - Environmental Assessment

  

	5.1	 The Minister has determined that no assessment of the Project is required under the Canadian
Environmental Assessment Act. 

 Article 6 - Other Government Assistance 

 

	6.1	 The Proponent hereby acknowledges that, except for scientific research and experimental development tax
credits, deductions or allowances, no other federal, provincial or municipal government financial assistance other than that described below has been requested or received by the Proponent for the Eligible Costs of the Project.

  

					
		 	SR&ED tax credits	 	$[*****]
		 	Provincial tax credits:	 	$[*****]

  
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		 	BDC	 	 $[*****]

		 	Total:	 	$[*****]

  

	6.2	 The Proponent will inform the Minister promptly in writing of any other federal, provincial or municipal
government assistance (except for scientific research and experimental development tax credits, deductions or allowances) to be received for the Eligible Costs of the Project and the Minister will have the right to reduce the Contribution under this
Agreement to the extent of any such assistance. 

 Article 7 - Addresses 

 

	7.1	 Any notice to the Minister will be addressed to: 

Director, Enabling Technologies 

Technology Partnerships Canada 

10th Floor 
 300 Slater Street

 Ottawa, Ontario K1A 0C8 

Fax No: (613) 954-9117 
  

	7.2	 Any notice to the Proponent will be addressed to: 

President and CEO 
 D-Wave Systems Inc. 
 320-1985 West Broadway 

Vancouver, BC V5C 6G9 
 Fax
(604) 630-1434 
 Article 8 - Special Conditions 

 

	8.1	 Alternate Dispute Resolution 

If a dispute arises concerning the application or interpretation of this Agreement, the parties will attempt to resolve the matter through good
faith negotiation, and may, if necessary and the parties consent in writing, resolve the matter through mediation by a mutually acceptable mediator or arbitration in accordance with the Commercial Arbitration Code set out in the
schedule to the Commercial Arbitration Act (Canada), and all regulations made pursuant to that Act. 
  

	8.2	 Liquidated Damages Clause 

  
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	8.2.1	 If in accordance with Article 8.2 of the General Conditions (Schedule 1), the Minister declares that an
event of default has occurred and directs the Proponent to transfer and deliver to the Minister, title to, possession of, and all rights of the Proponent in the Intellectual Property, then the Proponent shall immediately comply or as an alternative,
the Proponent may offer to pay a settlement amount (“the Settlement Amount”), as determined by the formula in Article 8.2.2, and the Minister shall accept this offer. 

 

	8.2.2	 The Settlement Amount shall be [*****] which is approximately [*****] times the cumulative royalty
payment amount of [*****] referred to in Article A. 2.2 of Schedule 4. 

 If some repayments have already been made to the
Minister under Section A (“the Payments to Minister”) of Schedule 4, the Settlement Amount shall be reduced by the repayments so paid by the Proponent. In the event that the total TPC contribution disbursed falls short of its maximum
authorized amount of $9,512,000 (Nine Million Five Hundred and Twelve Thousand) at no fault of the Proponent, the Settlement Amount shall be pro-rated downward to reflect the actual contribution made by the
Minister. 
  

	8.2.3	 The Settlement Amount due to the Minister under Article 8.2 shall be paid by the Proponent within thirty
(30) days of the Minister directing the Proponent to transfer and deliver to the Minister, title to, possession of, and all rights of the Proponent in the Intellectual Property, otherwise the Proponent shall immediately comply with the
Minister’s direction regarding the Intellectual Property. 

  

	8.2.4	 The Minister and the Proponent agree that if the Settlement Amount, as determined by the formula in
Article 8.2.2, is paid in full by the Proponent, then the Agreement is deemed to be terminated in accordance with Section 7 of the General Conditions (Schedule 1). 

 

	8.3	 Equity Equivalency Clause 

 

	8.3.1	 The Minister shall grant the Proponent an option to terminate this Agreement in the event of a change in
ownership. A change in ownership shall be deemed by the Minister to have occurred if and when a new person or entity becomes the beneficial owner of the shares of Common Stock (“the Common Shares”) of the Proponent carrying in excess of
fifty (50) per cent of the voting rights attached to all Common Shares issued and outstanding (“the Change in Ownership”). The Proponent shall advise the Minister in writing, at least, thirty (30) days prior to any anticipated
Change in Ownership. For greater certainty, the Change of Ownership shall be deemed as a “Material Change” as this term is described in Article 2 of the General Conditions (Schedule 1). 

 

	8.3.2	 If as a result of the Change of Ownership, the Proponent decides to withdraw from the project (“the
Event of Withdrawal”), the Minister shall not deem the Event of Withdrawal 

  
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	 	as an event of default and the remedies set forth in subsection 8.2 of the General Condition (Schedule 1) shall not apply. 

  

	8.3.3	 Within ninety (90) days following the Event of Withdrawal, the Proponent shall pay to the Minister
an amount of money equal to the value of the Common Shares in the capital of the Proponent (“the Equity Equivalency”), valued at the price per share payable on the transaction date that gave rise to the Change in Ownership. The number of
Common Shares in the Equity Equivalency shall be determined by an independent qualified professional, given the actual contribution(s) made by the Minister to the Proponent at the time the contribution(s) were made, as if this contribution(s) were
capitalised as an investment in equity capital of the Proponent. The Proponent shall cover all expenses associated with this valuation. 

  

	8.3.4	 In the event of stock splits, stock consolidations, or stock reclassifications that have occurred prior to the
Event of Withdrawal, the Equity Equivalency position of the Minister shall be adjusted accordingly, so that the virtual ownership interest of the Minister is maintained intact as described below: 

Stock Splits 
 In the
event of any subdivision, re-division, or change of the Common Shares of the Proponent into a greater number of Common Shares at any time while this Agreement is in force, the new Equity Equivalency number of
Common Shares shall thereafter be such greater number of Common Shares of the Proponent as would have resulted from said subdivision, re-division, or change had the Minister actually held the previous Equity
Equivalency number of Common Shares immediately prior to such subdivision, re-division, or change. 

Stock Consolidation 
 In
the event of any consolidation of the Common Shares of the Proponent into a lesser number of Common Shares at any time while this Agreement is in force, the new Equity Equivalency number of Common Shares shall thereafter be such lesser number of
Common Shares of the Agreement as would have resulted from such consolidation had the Minister actually held the previous number of Common Shares immediately prior to such consolidation. 

Reclassifications 
  

	 	(a)	 In the event of any reclassification of Common Shares of the Proponent, resulting, but not limited to, the
payment of a stock dividend other than dividends in the ordinary course, capital re-organization, or amalgamation of the Proponent with another corporation or the sale or conveyance of the undertaking or
assets of the 

  
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Proponent, as an entirety or substantially as an entirety to another entity, including pursuant to a take-over bid at, any time while this Agreement is in force, the new Equity Equivalency number
of Common Shares shall thereafter be the number of Common Shares of the Proponent or of the appropriate class or classes resulting from such reclassification that the Minister would have been entitled to receive in respect of the number of Common
Shares had the Minister actually held the previous Equity Equivalency number of Common Shares before such reclassification; and 

  

	 	(b)	 In the event of any amalgamation, merger or transfer of the undertaking or assets of the Proponent as an
entirety or substantially as an entirety to another corporation (‘the Successor Corporation’), the Successor Corporation resulting from such amalgamation, merger, or transfer (if not the Proponent) shall be deemed to assume the due and
punctual performance and observance of each and every covenant and condition contained herein to be performed and observed by the Proponent. 

  

	8.3.5	 Any payment due to the Minister under this Article shall be payable within ninety (90) days of the
transaction date that gave rise to the Change in Ownership. Any late payment shall incur interest charges at the Interest Rate set forth in Schedule 1. Upon payment by the Proponent to the Minister of the monetary value of the Equity Equivalency
pursuant to Section 8.3.3 with interest, if applicable, this Agreement shall be terminated in accordance with Section 7 of the General Conditions (Schedule 1). 

 

	8.4	 Financial Risk Management Clause 

For greater certainty, a deterioration in the Proponent’s financial position, as solely assessed by the Minister, shall be deemed as a material event
within the definition of Article 2, General Conditions (Schedule 1), the provisions of Article 8, General Conditions (Schedule 1), shall apply. 
  

	8.5	 Expenditure Incurred Prior to Approval of this Project 

For greater certainty, the TPC contribution shall not exceed 20 per cent of its maximum amount for the period from the Eligibility Date until the Approval
Date of this Project. 
  

	8.6	 Expenditures Incurred Outside of Canada 

For greater certainty, the TPC contribution towards foreign costs shall be the lesser of 20 per cent of the total maximum amount of the TPC contribution
of $1,900,000 (One million nine hundred thousand). 
  

	8.7	 Required Government Approval Clause: 

All payments to be made by the Minister to the Proponent, pursuant to this Agreement, on or after December 31, 2006 are subject to the required
Governmental approvals, including Treasury 

  
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	8.6	 Expenditures Incurred Outside of Canada 

For greater certainty, the TPC contribution towards foreign costs shall be the lesser of 20 per cent of the total maximum amount of the TPC contribution
of $1,900,000 (one million nine hundred thousand). 
  

	8.7	 Required Government Approval Clause: 

All payments to be made by the Minister to the Proponent, pursuant to this Agreement, on or after December 31, 2006 are subject to the required
governmental approvals, including Treasury Board. In the event that the Minister is prevented from disbursing the full amount of the Contribution, the Parties agree to review the effects of such a shortfall in the Contribution on the implementation
of the Agreement and to adjust, as appropriate, the mutual obligations specified therein. 
 Article 9 - Entire Agreement 

This Agreement constitutes the entire agreement between the parties and supersedes all previous documents, negotiations, arrangements, undertakings and
understandings related to its subject matter. 
 IN WITNESS WHEREOF the parties hereto have executed this Agreement through duly authorized
representatives. 
  

							
	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA,

as represented by the Minister of Industry
	 		 	
				
	Per:	 	 /s/ Tom Wright
	 	            	 	Sept 20/05                     
		 	Technology Partnerships Canada (TPC)	 		 	Date
				
		 	Tom Wright - Executive Director	 		 	
			
	D-WAVE SYSTEMS INC.	 		 	
				
	Per:	 	 /s/ Geordie Rose
	 		 	Sept 22/05                     
		 	GEORDIE ROSE	 		 	Date
		 	President & CEO	 		 	File No.: 720-493141

  
 CONFIDENTIAL AND
PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

							
	

	  	Technology Partnerships Canada	  	Partenariat technologique Canada	  	    
				
		  	An Agency of Industry Canada	  	Un organisme d’Industrie Canada	  	

 TPC PROJECT No. 720-493141 

AMENDMENT NO. 01 

TECHNOLOGY PARTNERSHIPS CANADA 

AMENDMENT AGREEMENT 
 This Agreement
made 
  

			
	Between:	  	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA,

as represented by the Minister of Industry

        (hereinafter referred to as the “Minister”)

		
	And:	  	 D-WAVE SYSTEMS INC., a corporation duly incorporated under the laws of the province of
Canada, having its head office located at 320-1985 West Broadway, Vancouver, British Columbia V6J 4Y3

        (hereinafter referred to as “the Proponent”).

 WHEREAS the Minister and the Proponent entered into a Contribution Agreement dated the 22nd day of September 2005, under the Technology Partnerships Canada Program (the “Contribution Agreement”); and 

WHEREAS the Minister and the Proponent now wish to amend the Contribution Agreement. 

In consideration of their respective obligations set out in the Contribution Agreement, the parties agree to amend the Contribution Agreement as follows:

 1. This Amendment Agreement must be signed by the Proponent and received by the Minister within thirty (30) days of its signature on behalf
of the Minister, failing which it will be null and void. 
 2. On page 1 of the Contribution Agreement: 

 

			
	 DELETE:
	  	“320-1985 West Broadway, Vancouver, British Columbia V6J 4Y3”, and
		
	 REPLACE:
	  	with the following:
		
		  	“100-4401 Still Creek Drive, Burnaby, British Columbia V5C 6G9”

  
 

    CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC.

 

 Page 2 of 2 
  

 3. At Article 7.2, delete and replace with the following: 

“President and CEO 
 D-Wave Systems Inc. 
 100-4401 Still Creek Drive 

Burnaby, British Columbia 
 V5C
6G9 
 FAX No. (604) 630-1434 

All provisions of the Contribution Agreement remain in full force and effect, except as modified by this Amendment Agreement. 

IN WITNESS WHEREOF the parties hereto have executed this Amendment Agreement through duly authorized representatives. 

 

							
	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA,

as represented by the Minister of Industry
	 		 	
				
	Per:	 	 /s/ Jeff Moore
	 		 	Apr 22/06                    
		 	Technology Partnerships Canada	 		 	Date
				
		 	Jeff Moore, Executive Director	 		 	
			
	D-WAVE SYSTEMS INC.	 		 	
				
	Per:	 	 /s/ David Gillard
	 	            	 	May 12, 2006                    
		 	DAVID GILLARD, CFO	 		 	Date
		 	Name & Title	 		 	

  
 TPC Project No.
720-493141 
 Amendment No. 01 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

							
	

	 	Industry Canada	 	Industrie Canada	 	
				
		 	 Industrial

Technologies Office
	 	 Office des
 technologies
industrielles
	 	
				
		 		 		 	 TPC PROJECT No. 720-493141

AMENDMENT NO. 02

 INDUSTRIAL TECHNOLOGIES OFFICE 

CONSENT AND AMENDING AGREEMENT #2 

This Agreement made 
  

			
	Between:	  	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA,

as represented by the Minister of Industry

        (hereinafter referred to as the “Minister”)

		
	And:	  	 D-WAVE SYSTEMS INC., a corporation duly incorporated under the laws of Canada, having its
head office located at 100-4401 Still Creek Drive, Burnaby, British Columbia V5C 6G9

        (hereinafter referred to as the “Proponent”).

		
		  	Each a “Party” and collectively the “Parties”

 WHEREAS the Minister and the Proponent entered into a Contribution Agreement (the “Original
Agreement”) dated the 22nd day of September 2005, under the former Technology Partnerships Canada Program; 

WHEREAS the Original Agreement was subsequently amended on the 12th day of May 2006 by an amending
agreement no. 1 (collectively with the Original Agreement, the “Contribution Agreement”); 
 WHEREAS the Parties have agreed to
amend the Contribution Agreement in order to, among others: (i) extend the Project Completion Date by two years, (ii) revise the Statement of Work, (iii) reduce the authorized assistance and revise repayment terms, and
(iv) modify the Equity Equivalency Clause; 
 WHEREAS the Minister has agreed that the Proponent manufacture certain resulting products outside
of Canada; and 

  

			
		  	 TPC Project No. 720-493141

Amendment No. 02

	

	  	
	  
 CONFIDENTIAL AND PROPRIETARY INFORMATION
OF D-WAVE SYSTEMS INC.

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 WHEREAS to date $6,080,030 has been disbursed by the Minister and the amount of $1,118,970 remains to
be claimed, 
 NOW THEREFORE THIS AGREEMENT WITNESSETH in consideration of their respective obligations set out in the Contribution Agreement, the
Parties agree as follows: 
 Interpretation 
  

	 	1.	 All capitalized terms not otherwise defined herein have the meanings given to them in the Contribution
Agreement. 

 Execution 
  

	 	2.	 This Agreement must be signed by the Proponent and received by the Minister within thirty (30) days of its
signature on behalf of the Minister, failing which it will be null and void. 

 Consent 

 

	 	3.	 Notwithstanding subsection 1 (a) of part B (Contractual Benefits) of Schedule 4 (Contractual Benefits), the
Minister consents to the Proponent manufacturing the Poseidon processor resulting from the Project, and future generations of more powerful processors, outside of Canada. 

Amendment 
 The Parties agree to amend the terms of
the Contribution Agreement as follows: 
  

	 	4.	 In Article 3 - The Proponent’s Obligations, Sub-article 3.2
is hereby deleted in its entirety and replaced by the following; 

 “3.2     The Proponent
shall ensure that the Project is completed on or before December 31, 2009 (“Project Completion Date”), unless otherwise agreed to in writing by the Minister.” 

 

	 	5.	 In Article 4 – The Contribution, Sub-article 4.1 is hereby
deleted in its entirety and replaced by the following: 

  
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 “4.1     Subject to all other provisions of this Agreement,
the Minister will make a Contribution to the Proponent in respect of the Project, of the lesser of: 
 (a) 30% of the Eligible Costs; and

 (b) $7,199,000” 
  

	 	6.	 In Article 4 – The Contribution, Sub-article 4.3 is hereby
deleted in its entirety and replaced by the following: 

 “4.3     Unless the Minister
agrees otherwise in writing, the amount of the Contribution will not exceed the following amounts in the relevant Government Fiscal Years of the Project as follows: 

2004-05: $765,300 
 2005-06:
$1,509,300 
 2006-07: $1,782,300 

2007-08: $2,321,400 
 2008-09:
$821,700 
 2009-10: $0 
 The
Minister will consider any request to reprofile these funds, but the Minister will have no obligation to pay any greater amount in any of the said Fiscal Years except to the extent that such reprofiling will have been agreed to by the
Minister.” 
  

	 	7.	 In Article 8 – Special Conditions, Section 8.2.2 of
Sub-article 8.2 – Liquidated Damages Clause, is hereby deleted in their entirety and replaced by the following: 

“8.2.2 The Settlement Amount shall be [*****] which is approximately [*****] times the cumulative royalty payment amount of [*****]
referred to in Article A. 2.2 of Schedule 4. 
 If some repayments have already been made to the Minister under Section A (“the Payments
to Minister”) of Schedule 4, the Settlement Amount shall be reduced by the repayments so paid by the Proponent. In the event that the total TPC contribution disbursed falls short of its maximum authorized amount of $7,199,000 (Seven Million One
Hundred and Ninety Nine) at no fault of the 

  
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Proponent, the Settlement Amount shall be pro-rated downward to reflect the actual contribution made by the Minister.’’ 

 

	 	8.	 In Article 8 – Special Conditions, Sections 8.3.2 and 8.3.3 of
Sub-article 8.3 - Equity Equivalency Clause, are hereby deleted in their entirety and replaced by the following: 

“8.3.2 If as a result of the Change of Ownership, or in order to facilitate a Change in Ownership, the Proponent decides to
withdraw from the Project, then, by no later than ninety (90) days after the Change of Ownership occurs, the Proponent shall deliver a written notice (the “Notice of Intent to Withdraw”) to the Minister at the address set out in
Article 7 advising of the Proponent’s decision to withdraw from the Project. At the same time, the Proponent shall provide the Minister with a draft calculation of the Equity Equivalency (as defined in Section 8.3.3 below) by an independent
qualified professional at a nationally-recognized firm. The Minister has 30 (thirty) days to accept the calculation of Equity Equivalency. If the Minister does not accept the calculation within thirty (30) days from the date of receipt by the
Minister of the calculation, the Minister and the Proponent may resolve the calculation of the Equity Equivalency through the alternate dispute resolution as provided for in Article 8.1. The date upon which the Minister accepts the Equity
Equivalency calculation, shall be deemed to be “the Event of Withdrawal”. The Minister shall not deem the Event of Withdrawal as an event of default and the remedies set forth in subsection 8.2 of the General Condition (Schedule 1) shall
not apply. 
 8.3.3 Within sixty (60) days following the Minister’s acceptance of calculation of Equity Equivalency, the
Proponent shall pay to the Minister an amount of money equal to the value of the Common Shares in the capital of the Proponent (the “Equity Equivalency”), valued at the price per share payable on the transaction date of the Change in
Ownership. The number of Common Shares in the Equity Equivalency shall be determined according to the Canadian Institute of Chartered Accountants (CICA) standards given the actual contribution(s) made by the Minister to the Proponent at the time the
contribution(s) were made, as if this contribution(s) were capitalised as an investment in equity capital of the Proponent. The Proponent shall cover all expenses associated with this valuation.” 

 

	 	9.	 In Article 8 – Special Conditions, Section 8.3.5 of
Sub-article 8.3 - Equity Equivalency Clause, is hereby deleted in its entirety and replaced by the following: 

  
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 “8.3.5 Late payment shall incur interest charges at the Interest Rate set forth
in Schedule 1. Upon payment by the Proponent to the Minister of the monetary value of the Equity Equivalency pursuant to Section 8.3.3. with interest, if applicable, this Agreement shall be terminated and the Proponent and the Minister shall be
deemed to have fulfilled all of their respective obligations under the Agreement except that the audit rights of the Minister under Section 5 of the General Conditions (Schedule 1) and the Minister’s right to receive reimbursement for
overpayment under Section 4 of the General Conditions (Schedule 1) will survive for one year following termination of the Agreement.” 
  

	 	10.	 In Article 8 – Special Conditions, Sub-article 8.6 -
Expenditures Incurred Outside of Canada is hereby deleted in its entirety and replaced by the following: 

  

	 	“8.6	 Expenditures Incurred Outside of Canada 

For greater certainty, the TPC contribution towards foreign costs shall be the lesser of 20 per cent of the total maximum amount of the
TPC contribution and $1,439,800 (one million four hundred and thirty nine thousand eight hundred)” 
  

	 	11.	 In Article 8 – Special Conditions, Sub-article 8.7 –
Required Government Approval Clause, the date of “December 31, 2006” is hereby deleted and replaced by the date of “December 31, 2009”. 

 

	 	12.	 In Article 8 – Special Conditions, the following new
Sub-article 8.8 is hereby added following Sub-article 8.7: 

  

	 	“8.8	 Pre Disbursement Condition 

Notwithstanding Article 4 of this Agreement, the Minister’s obligation to disburse any portion the Remaining Amount will be subject to the
following conditions: 
  

	 	(a)	 The Proponent obtaining fully executed term sheets, copy of which will be provided to the Minister, from
investors confirming additional financing in the minimum amount of $12,000,000, net of all estimated fees, costs and expenses, to be raised during the period from November 1, 2009 to June 30, 2010, by way of equity financing, venture debt
financing or other financial arrangement in form and substance acceptable to the Minister; and 

  

	 	(b)	 The postponement of any payment due by the Proponent on account of such additional financing, including but not
limited to payment of dividends or 

  
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interest or repayment of principal, until the Project as described in Schedule 2 is completed to the satisfaction of the Minister. 

If such conditions are not met on or before June 30, 2010, the Minister shall not be obligated to release the Remaining Amount yet to be
claimed under this Agreement. 
 For the purposes hereof, the “Remaining Amount” means the last amount of $1,118,970 under
the Contribution.” 
  

	 	13.	 In Schedule 2 – The Project, the Statement of Work and Forms A, B, C, D, El, E2, and E3 are hereby
deleted in their entirety and replaced with the revised Statement of Work and Forms A, B, C, Cl, C2, C3, C4, C5, D, El, E2, and E3 attached hereto as Annex 1. 

 

	 	14.	 In Schedule 4 - Contractual Benefits, in Part A-Payments to
Minister, Subsections 2.2 and 2.3 are hereby deleted in their entirety and replaced by the following: 

  

	 	“2.2	 Royalty Period 

The Royalty Period will begin on 1 January 2010 and will end on 31 December 2021. Within the Royalty Period from 1 January 2010
until 31 December 2021, the Proponent will pay until the amount of [*****] accrues or until 31 December 2021, whichever occurs first. If, however, cumulative royalties are less than [*****] by 31 December 2021, then the royalty period
will continue until the earlier of 31 December 2029 or until a cumulative royalty ceiling of [*****] is reached, whichever occurs first. 
  

	 	2.3	 Royalty Statements and Payments 

The Proponent will provide to the Minister an annual statement of the Gross Business Revenues, certified by the Proponent’s Chief
Financial Officer, within four (4) months of the end of each company fiscal year 31 December, together with the related royalty payment. The first statement and related royalty payment must be provided to the Minister by 30 April
2011 in respect of the fiscal year ending 31 December 2010, and by 30 April each year thereafter in regard to the previous fiscal year. Payments shall be made by cheque to the order of the Receiver General and sent to the
Minister.” 
  

  
 TPC Project No.
720-493141 
 Amendment No. 02 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 7 of 36 
  

	 	15.	 In Schedule 5 - Reporting Requirements, the Form TPC-1 is hereby
deleted and replaced with the revised Form TPC-1 attached hereto as Annex 2. 

 General

  

	 	16.	 Each of the Parties shall, at the request of the other Party to this Agreement, execute such documents and do
such acts as may be reasonably required to carry out the terms of this Agreement. 

  

	 	17.	 This Agreement may be executed in as many counterparts as are necessary, and when executed by all parties
hereto, such counterparts shall constitute one agreement. 

  

	 	18.	 Except as amended by this Agreement, all of the provisions of the Contribution Agreement shall continue in full
force and effect until such time as the Contribution Agreement is terminated. 

  

	 	19.	 The Contribution Agreement and this Agreement will henceforth be read together and will have the effect as if
all the provisions of such agreements were contained in one instrument. 

  

	 	20.	 This Agreement shall enure to the benefit of, and be binding upon, the Parties and their respective successors
and permitted assigns. 

  

	 	21.	 No modification, supplement or amendment to this Agreement shall be binding unless executed in writing by all
of the Parties hereto. 

 [Remainder of this page intentionally left blank] 

  
 TPC Project No.
720-493141 
 Amendment No. 02 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 8 of 36 
  

 IN WITNESS WHEREOF the parties hereto have executed this Agreement through duly authorized
representatives. 
  

							
	 HER MAJESTY THE QUEEN IN RIGHT

	 OF CANADA, as represented by the Minister of Industry

				
	 Per:
	 	 /s/ Simon Brault
	 		 	July 19/2010                    
		 	 Industrial Technologies Office
	 		 	            Date
		 	 SIMON BRAULT for
	 		 	
		 	 Sylvain Laporte, Executive Director
	 	             
	 	
		
	 D-WAVE SYSTEMS INC.
	 	
				
	 Per:
	 	 /s/ Vern Brownell
	 		 	July 27, 2010                    
		 		 		 	            Date
				
		 	VERN BROWNELL, CEO	 		 	
		 	 Name & Title
	 		 	

  

  
 TPC Project No.
720-493141 
 Amendment No. 02 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 

 TPC PROJECT No. 720-493141 

AMENDMENT NO. 03 

INDUSTRIAL TECHNOLOGIES OFFICE 

AMENDING AGREEMENT #3 
 This Agreement
made 
  

			
	Between:    	  	HER MAJESTY THE QUEEN IN RIGHT OF CANADA,
		  	as represented by the Minister of Industry
		  	 (hereinafter referred to as the “Minister”)

		
	And:	  	D-WAVE SYSTEMS INC., a corporation duly incorporated under the laws of Canada, having its head office located at 3033 Beta Avenue, Burnaby, British Columbia V5G 4M9
		  	 (hereinafter referred to as the “Proponent”).

		
		  	Each a “Party” and collectively the “Parties”

 WHEREAS the Minister and the Proponent entered into a Contribution Agreement on September 22, 2005 as amended by
an amending agreement no.l dated May 12, 2006 and by an amending agreement no. 2 dated July 27, 2010 (collectively, the “Contribution Agreement”), under the former Technology Partnerships Canada Program whereby the
Minister agreed to provide a contribution in the maximum amount of $7,199,000; and 
 WHEREAS the Parties have agreed to amend the Contribution
Agreement in order to, inter alia: (i) clarify the obligations with respect to granting security, and (ii) revise certain remedies in case of default, 

NOW THEREFORE THIS AGREEMENT WITNESSETH in consideration of their respective obligations set out in the Contribution Agreement, the Parties agree as
follows: 
 Interpretation 
  

	 	1.	 All capitalized terms not otherwise defined herein have the meanings given to them in the Contribution
Agreement. 

 Execution 
  

	 	2.	 This Agreement must be signed by the Proponent and received by the Minister within thirty (30) days of its
signature on behalf of the Minister, failing which it will be null and void. 

 CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 

 Amendment 

The Parties agree to amend the terms of the Contribution Agreement as follows: 
  

	 	3.	 In the appearances, the address of the Proponent is hereby deleted and replaced by the following:

 “3033 Beta Avenue, Burnaby, British Columbia V5G 4M9” 

 

	 	4.	 In Article 7 – Addresses, in Article 7.2 the contact information of the Proponent is deleted and
replaced by the following: 

 “President and CEO 

D-Wave Systems Inc. 

3033 Beta Avenue, 
 Burnaby,
British Columbia 
 V5G 4M9 

FAX No. (604) 630-1434” 
  

	 	5.	 In Article 8 – Special Conditions, Sub-article 8.2.1 is
hereby deleted in its entirety and replaced by the following: 

 “8.2.1 If the Minister declares that an event
of default has occurred in relation to paragraphs 8.1(a) or (b) of Schedule 1 – General Conditions, or as a result of the failure of the Proponent to comply with subsection 6.6 of Schedule 1 – General Conditions (Intellectual
Property), section A (Payments to Minister) or subsection B. l(Work in Canada) of Schedule 4 or the provisions that may be part of the Agreement regarding the disposal of special purpose equipment, the Minister may require the Proponent to pay a
settlement amount (the “Settlement Amount”) as determined by the formula in Article 8.2.2.” 
  

	 	6.	 In Article 8 – Special Conditions, Sub-article 8.2.3 is
hereby deleted in its entirety and replaced by the following: 

 “8.2.3 The Settlement Amount due to the
Minister under Article 8.2 shall be paid by the Proponent within thirty (30) days of the Minister declaring the default.” 
  

	 	7.	 In Schedule 1 – General Conditions, Paragraph 6.6(b) is hereby amended by adding the following at
the end of the paragraph: 

 “For greater clarity, the Proponent may grant a security interest on the Intellectual
Property in favour of a creditor from time to time.” 
  

	 	8.	 In Schedule 1 – General Conditions, the last paragraph of Subsection 8.2 is hereby deleted and
replaced by the following: 

 CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 

	 	“(d)	 terminate this Agreement; 

 

	 	(e)	 post a notice on the Industry Canada website disclosing that the Proponent is in default under the provisions
of this Agreement and describing generally the remedies, if any, that the Minister has accordingly exercised; and 

  

	 	(f)	 any other remedy available at law.” 

General 
  

	 	9.	 Each of the Parties shall, at the request of the other Party to this Agreement, execute such documents and do
such acts as may be reasonably required to carry out the terms of this Agreement. 

  

	 	10.	 This Agreement may be executed in as many counterparts as are necessary, and when executed by all parties
hereto, such counterparts shall constitute one agreement. 

  

	 	11.	 Except as amended by this Agreement, all of the provisions of the Contribution Agreement shall continue in full
force and effect until such time as the Contribution Agreement is terminated. 

  

	 	12.	 The Contribution Agreement and this Agreement will henceforth be read together and will have the effect as if
all the provisions of such agreements were contained in one instrument. 

  

	 	13.	 This Agreement shall enure to the benefit of, and be binding upon, the Parties and their respective successors
and permitted assigns. 

  

	 	14.	 No modification, supplement or amendment to this Agreement shall be binding unless executed in writing by all
of the Parties hereto. 

 [Remainder of this page intentionally left blank] 

 CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 

 IN WITNESS WHEREOF the parties hereto have executed this Agreement through duly authorized
representatives. 
  

							
	 HER MAJESTY THE QUEEN IN RIGHT

OF CANADA, as represented by the Minister of Industry

				
	Per:	 	 

	 		 	Jan 22, 2014                    
		 	Repayment Recovery Director	 		 	        Date
		 		 		 	
			
	D-WAVE SYSTEMS INC.	 		 	
				
	Per:	 	/s/ Warren Wall	 		 	JAN 21, 2014                    
		 	WARREN WALL, COO	 		 	        Date
		 	Name & Title	 		 	

							
	

	  	 Industry Canada
 Industrial

Technologies Office
	  	 Industrie Canada
 Office des

technologies industrielles
	  	 TPC Project No. 720-493141

Amendment No. 4

 INDUSTRIAL TECHNOLOGIES OFFICE 

TECHNOLOGY PARTNERSHIPS CANADA 

AMENDMENT AGREEMENT NO. 4 
 This
Amendment Agreement made 
  

			
	Between:	  	
		
		  	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA, 

as represented by the Minister of Industry

		
		  	(the “Minister”)
		
	And:	  	
		
		  	D-Wave Systems Inc., a corporation duly incorporated under the laws of Canada, having its head office located at 3033 Beta Avenue, Burnaby, British Columbia V5G 4M9
		
		  	(the “Proponent”).

 Each a “Party” to this Amendment Agreement and collectively referred to as the “Parties”.

 RECITALS 
 WHEREAS 

 

	A-	 The Minister and the Proponent entered into a Contribution Agreement dated September 22, 2005 under the
Technology Partnerships Canada (“TPC”) Program, which was subsequently amended by an amendment agreement no. 1 dated May 12, 2006, an amendment agreement no. 2 dated July 27, 2010, and an amendment agreement no. 3 dated
January 22, 2014. The Contribution Agreement and the Amendment Agreements are collectively referred to as the “Contribution Agreement”; 

 

	B-	 The Minister and the Proponent have agreed to amend, inter alia, the repayment obligations under the
Contribution Agreement. 

  

	
	

	CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC.

 NOW THEREFORE in consideration of their respective obligations set out below, the Parties hereto
acknowledge and agree as follows: 
 Interpretation 
  

	1.	 All capitalized terms not otherwise defined herein have the same meaning ascribed to them in the Contribution
Agreement. 

 Execution 
  

	2.	 This Amendment Agreement must be signed by the Proponent and received by the Minister within thirty
(30) days of its signature on behalf of the Minister, failing which it shall be null and void. 

 Amendment 

 

	3.	 In Article 8 - Special Conditions, Section 8.2.2 of
Sub-article 8.2 - Liquidated Damages Clause, is hereby deleted in its entirety and replaced by the following: 

“8.2.2 The Settlement Amount shall be [*****] which is approximately [*****] times the remaining repayment amount of $12,000,000
(twelve million) as illustrated in Table 2.1 of Schedule 4. 
 If, after December 31, 2015, repayments have been made to the Minister
under Section A (“Payments to Minister”) of Schedule 4, the Settlement Amount shall be reduced by one and a half (11⁄2) times the repayments so paid by
the Proponent.” 
  

	4.	 Schedule 4 - Contractual Benefits of the Contribution Agreement, Section A (“Payments to
Minister”) shall be deleted in its entirety and be replaced with the following revised Section A (“Payments to Minister”): 

  

	 	“A-	 PAYMENTS TO MINISTER 

 

	 	1.	 Definitions 

“Repayment Period” means the period during which repayments are due, as specified in section 2.1 below. 

  
 2 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

	 	2.	 Repayments 

  

	 	2.1	 Repayment Period 

The Repayment Period will begin on January 1, 2010 and will end on May 31, 2021. 

 

	 	2.2	 Annual Repayment 

The Proponent shall repay the amount of $12,501,327 (twelve million five hundred and one thousand three hundred twenty seven). The first
payment of $227,686 shall be payable upon the execution of this Amendment Agreement, and each year thereafter by May 31 (“Annual Repayment”), as set out in Table 2.1 below. 

Table 2.1.: Annual Repayments 
  

									
	 Proponent Fiscal Year

Ending (PFYE)           
	  	Annual Repayment Due
(Canadian $)	 	  	Repayment Due Date	 
	 Dec. 31, 2010-2014
	  	 	501,327	 	  	 	April 30, 2011-2015*	 
	 December 31, 2015
	  	 	227,686	 	  	 
	Date of the execution of
Amendment Agreement #4	 
 
	 January 31, 2017
	  	 	1,772,314	 	  	 	May 31, 2017	 
	 January 31, 2018
	  	 	2,500,000	 	  	 	May 31, 2018	 
	 January 31, 2019
	  	 	2,500,000	 	  	 	May 31, 2019	 
	 January 31, 2020
	  	 	2,500,000	 	  	 	May 31, 2020	 
	 January 31, 2021
	  	 	2,500,000	 	  	 	May 31, 2021	 
		  	  
	  
	 	  			
	 Total
	  	 	12,501,327	 	  			
		  	  
	  
	 	  			

  

	*	 Repayments collected to date 

Payments shall be made by cheque to the order of the Receiver General of Canada and sent to: 

Innovation, Science and Economic Development Canada 

Attn: Programs and Services Directorate 

235 Queen Street, 2nd floor 
 Ottawa Ontario, K1A 0H5 

  
 3 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

	 	2.3	 Late Payments 

Interest shall be payable on any portion of the Annual Repayment remaining unpaid, calculated and payable at the Interest Rate, from the date
upon which the Annual Repayment is due, until payment in full has been received by the Minister. Interest shall be payable in accordance with the foregoing notwithstanding any other remedies available to the Minister in the event of Default by the
Proponent under this Agreement. 
 Whenever any payment date under this section falls on a Saturday, Sunday or statutory holiday, payment
will be due on the next day following which is not a Saturday, Sunday or statutory holiday.” 
  

	5.	 Schedule 4, Section B - Contractual Benefits to Canada of the Contribution Agreement, sub-section 1 (a) shall be deleted in its entirety and be replaced with the following revised sub-section 1(a): 

 

	 	“1.	 Work in Canada 

 

	 	(a)	 Unless otherwise agreed to in writing by the Minister, the Proponent will ensure that the Intellectual Property
is exploited through the production in Canada of resulting products until the end of the Repayment Period as set out in section 2.1 of this Schedule.” 

  

	6.	 Schedule 5 - Reporting Requirements, of the Contribution Agreement, Forms
TPC-1, TPC-2, and TPC-3 are hereby deleted and replaced with the revised Forms TPC-1, TPC- 2, and TPC-3 attached hereto as Annex A. 

 General

  

	7.	 Each of the Parties shall, at the request of the other Party to this Amendment Agreement, execute such
documents and do such acts as may be reasonably required to carry out the terms of this Amendment Agreement. 

  

	8.	 This Amendment Agreement may be executed in as many counterparts as are necessary, and when executed by all
parties hereto, such counterparts shall constitute one agreement. 

  

	9.	 Except as amended by this Amendment Agreement, all of the provisions of the Contribution Agreement shall
continue in full force and effect until such time as the Contribution Agreement expires. 

  
 4 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

	10.	 The Contribution Agreement and this Amendment Agreement will henceforth be read together and will have the
effect as if all the provisions of such agreements were contained in one instrument. 

  

	11.	 No modification, supplement or amendment to this Amendment Agreement shall be binding unless executed in
writing by all of the Parties hereto. 

 [Remainder of this page intentionally left blank] 

  
 5 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 IN WITNESS WHEREOF the parties hereto have executed this Amendment Agreement through duly authorized
representatives. 
  

							
	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA

as represented by the Minister of Industry

				
	 Per:
	 	 /s/ Lisa Setlakwe
	 		 	Date: July 21, 2016                    
	Name:	 	Lisa Setlakwe        	 		 	
	Title:	 	Executive Director,	 		 	
		 	Industrial Technologies Office	 		 	
	
	D-Wave Systems Inc.
				
	Per:	 	 /s/ WARREN WALL        
	 		 	Date: July 25, 2016                    
	Name:	 	WARREN WALL	 		 	
	Title:	 	COO	 		 	

 I have authority to bind the Corporation. 

  
 6 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 Annexe A 

FORM TPC - 1 
 REPORT ON
EXPECTED & ACTUAL REPAYMENTS TO THE MINISTER 
  

			
	APPLICANT NAME:	  	D-Wave Systems Inc.
	PROJECT NO:	  	720-493141

  

											
	 1
	  	2	 	  	3	 	  	4
	 YEAR

ENDING
	  	EXPECTED
PAYMENT
(in $)	 	  	ACTUAL
PAYMENT
(in $)	 	  	DUE
DATE
	 Dec 31, 2010
	  				  	 	3,575	 	  	April 30, 2011
	 Dec 31, 2011
	  				  	 	81,883	 	  	April 30, 2012
	 Dec 31, 2012
	  				  	 	84,488	 	  	April 30, 2013
	 Dec 31, 2013
	  				  	 	161,164	 	  	April 30, 2014
	 Dec 31, 2014
	  				  	 	170,217	 	  	April 30, 2015
	 Dec 31, 2015
	  	 	227,686	 	  				  	Date of the execution of
 Amendment Agreement #4

	 Jan 31, 2017
	  	 	1,772,314	 	  				  	May 31, 2017
	 Jan 31, 2018
	  	 	2,500,000	 	  				  	May 31, 2018
	 Jan 31, 2019
	  	 	2,500,000	 	  				  	May 31, 2019
	 Jan 31, 2020
	  	 	2,500,000	 	  				  	May 31, 2020
	 Jan 31, 2021
	  	 	2,500,000	 	  				  	May 31, 2021
		  	  
	  
	 	  	  
	  
	 	  	
	 Total
	  	 	12,000,000	 	  	 	501,327	 	  	
		  	  
	  
	 	  	  
	  
	 	  	

 SIGNATURE OF AUTHORIZED
OFFICER:                                       
   
 REPORT
DATE:                      

  
 7 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 FORM TPC - 2 

REPORT ON JOB CREATION AND MAINTENANCE 
  

			
	 PROPONENT: D-WAVE SYSTEMS INC.
	  	 PROJECT NO.: 720-493141

  

GENERAL INSTRUCTIONS 

The intent of this schedule is to identify the number of PYs expended on Project related activities during any one year of the
duration of the Agreement, according to category of employment. Both part-time and full-time employees should be claimed, as employment of all types represents a Project benefit. Part-time work should be converted into PY units on the basis normally
used by the Proponent provided it is between 1800 and 2000 hours of work paid in a given year. 
 Data is to be provided
based on a 52 week calendar year and should be expressed in PY units. 
 Direct PYs are to be counted. The
term “direct PY” relates to the work performed in Canada by employees of the proponent. Only those direct PYs which result from the project are to be counted. Work performed outside of Canada by Canadian employees is not to be included
except for eligible activities performed as part of the Statement of Work during the Work Phase. Reported PYs may be performed by existing staff or by new hires. These PYs are normally located in the Proponent’s facility and involve an eligible
operation or activity supported by the industrial assistance program. During the Benefits Phase, these PYs normally pertain to production/distribution activities associated with the supported facility, product or processes of the proponent. 

Indirect PYs refer to work performed in Canada as a result of the project by employees who are not employed
by the Proponent, and normally at a location other than the Proponent’s facility. Apart from the following two exceptions, indirect PYs are never to be included in the PY count: 

1) Sub-contracted PYs in the Work phase of R&D/innovation projects are included
in the PY count, provided that the related activity is explicitly set out in the Statement of Work in the Contribution Agreement. 

2) Benefit phase production PYs of related entities to the Proponent are included in the PY count, provided that the
Contribution Agreement explicitly includes PY reporting requirements on the parties concerned and provides the Minister access to the related facilities for monitoring purposes. 

Reporting during the Work phase requires a yearly breakdown by category of employment.
Reporting during the Benefits phase requires the average number of PYs during this phase by category of employment. 
  

  
 8 

CONFIDENTIAL AND PROPRIETARY INFORMATION OF D-WAVE SYSTEMS INC. 

 TPC Project No. 720-493141 

STRATEGIC INNOVATION FUND 

TECHNOLOGY PARTNERSHIPS CANADA 

AMENDMENT AGREEMENT NO. 5 
 This
Amendment Agreement made 
  

			
	Between:	  	
		  	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA,

as represented by the Minister of Industry

		
		  	(the “Minister”)
		
	And:	  	
		
		  	D-Wave Systems Inc., a corporation duly incorporated under the laws of Canada, having its head office located at 3033 Beta Avenue, Burnaby, British Columbia V5G 4M9
		
		  	(the “Proponent”).

 Each a “Party” to this Amendment Agreement and collectively referred to as the “Parties”.

 RECITALS 
 WHEREAS 

 

	A-	 The Minister and the Proponent entered into a Contribution Agreement dated September 22, 2005 under the
Technology Partnerships Canada (“TPC”) Program, which was subsequently amended by an amendment agreement no. 1 dated May 12, 2006, and amendment agreement no. 2 dated July 27, 2010, and an amendment agreement no. 3 dated
January 22, 2014, and an amendment agreement no. 4 dated July 25, 2016. The Contribution Agreement and the Amendment Agreements are collectively referred to as the “Contribution Agreement”; 

 

	B-	 The Minister and the Proponent have agreed to amend, inter alia, the recipient’s fiscal year end,
adjust the settlement amount in the liquidated damages clause, adjust the repayment terms including the total repayment amount and extend the repayment period end date under the Contribution Agreement. 

 TPC Project No. 720-493141 

Amendment No.5 
  

 NOW THEREFORE in consideration of their respective obligations set out below, the Parties hereto
acknowledge and agree as follows: 
 Interpretation 
  

	1.	 All capitalized terms not otherwise defined herein have the same meaning ascribed to them in the Contribution
Agreement. 

 Execution 
  

	2.	 This Amendment Agreement must be signed by the Proponent and received by the Minister within thirty
(30) days of its signature on behalf of the Minister, failing which it shall be null and void. 

 Amendment 

 

	3.	 All references to the Recipient Fiscal Year End are changed from January 31 to December 31.

  

	4.	 In Article 8 - Special Conditions, of the Contribution Agreement, Section 8.2.2 of
Subarticle 8.2 - Liquidated Damages, is hereby deleted in its entirety and replaced by the following: 

 “8.2.2
The Settlement Amount shall be [*****] dollars ([*****]) which is [*****] times the total remaining repayment amount of two million, five hundred thousand dollars ($2,500,000) as illustrated in Table 2.1of Schedule 4.” 

 

	5.	 Schedule 4 - Contractual Benefits of the Contribution Agreement, Section A (“Payments to
Minister”) shall be deleted in its entirety and be replaced with the following: 

  

	 	“A -	 PAYMENTS TO MINISTER 

 

	 	1.	 Definitions 

“Repayment Period” means the period during which repayments are due, as specified in section 2.1 below. 

 

	 	2.	 Repayments 

  
 2 

 TPC Project No. 720-493141 

Amendment No.5 
  

	 	2.1	 Repayment Period 

The Repayment Period will begin on January 1, 2010 and will end on April 30, 2025. 

 

	 	2.2	 Annual Repayment 

The Proponent shall repay the remaining repayment amount of $2,500,000 with payments of five hundred thousand dollars ($500,000) payable on
April 30, 2021 and on April 30, each year thereafter (“Annual Repayment”), for a total repayment amount of seven million, five hundred, one thousand, two hundred and thirty-seven dollars ($7,501,237) as set out in Table 2.1
below. 
 Table 2.1.: Annual Repayments 
  

							
	 Proponent Fiscal Year

Ending (PFYE)
	  	Annual Repayment Due
(Canadian $)	 	  	Repayment Due Date
	 December 31, 2010 to December 31, 2017
	  	 	5,001,327	 	  	Actual
	 December 31, 2018
	  	 	0	 	  	May 31, 2019
	 December 31, 2019
	  	 	0	 	  	May 31, 2020
	 December 31, 2020
	  	 	500,000	 	  	April 30, 2021
	 December 31, 2021
	  	 	500,000	 	  	April 30, 2022
	 December 31, 2022
	  	 	500,000	 	  	April 30, 2023
	 December 31, 2023
	  	 	500,000	 	  	April 30, 2024
	 December 31, 2024
	  	 	500,000	 	  	April 30, 2025
		  	  
	  
	 	  	
	 Total
	  	 	7,501,327	 	  	
		  	  
	  
	 	  	

 Payments shall be paid by cheque issued to the order of the Receiver General of Canada and sent to: 

Innovation, Science and Economic Development Canada 

Attn: Programs and Services Directorate 

235 Queen Street, 2nd floor 
 Ottawa Ontario, K1A 0H5 

  
 3 

 TPC Project No. 720-493141 

Amendment No.5 
  

 Attn: Director, Programs and Services Directorate 

Payments may also be paid via electronic funds transfer. In such a case, the Recipient should contact the Minister for information on how to
make payments via electronic funds transfer. 
  

	 	2.3	 Late Payments 

Interest shall be payable on any portion of the Annual Repayment remaining unpaid, calculated and payable at the Interest Rate, from the date
upon which the Annual Repayment is due, until payment in full has been received by the Minister. Interest shall be payable in accordance with the foregoing notwithstanding any other remedies available to the Minister in the event of Default by the
Proponent under this Agreement. 
 Whenever any payment date under this section falls on a Saturday, Sunday or statutory holiday, payment
will be due on the next day following which is not a Saturday, Sunday or statutory holiday.” 
 General 

 

	6.	 Each of the Parties shall, at the request of the other Party to this Amendment Agreement, execute such
documents and do such acts as may be reasonably required to carry out the terms of this Amendment Agreement. 

  

	7.	 This Amendment Agreement may be executed in as many counterparts as are necessary, and when executed by all
parties hereto, such counterparts shall constitute one agreement. 

  

	8.	 Except as amended by this Amendment Agreement, all of the provisions of the Contribution Agreement shall
continue in full force and effect until such time as the Contribution Agreement expires. 

  

	9.	 The Contribution Agreement and this Amendment Agreement will henceforth be read together and will have the
effect as if all the provisions of such agreements were contained in one instrument. 

  

	10.	 No modification, supplement or amendment to this Amendment Agreement shall be binding unless executed in
writing by all of the Parties hereto. 

 [Remainder of this page intentionally left blank] 

  
 4 

 TPC Project No. 720-493141 

Amendment No.5 
  

 IN WITNESS WHEREOF the parties hereto have executed this Amendment Agreement through duly authorized
representatives. 
  

							
	 HER MAJESTY THE QUEEN IN RIGHT OF CANADA

as represented by the Minister of Industry

				
	Per:	 	 /s/ Colette Kaminsky
	 		 	Date: November 23, 2020
	Name:	 	Colette Kaminsky	 		 	
	Title:	 	 Director General,
 Strategic
Innovation Fund
	 	             

	 	
	
	D-Wave Systems Inc.
				
	Pre:	 	 /s/ Alan Baratz
	 		 	Date: November 23, 2020
	Name:	 	Dr. Alan Baratz	 		 	
	Title:	 	 Chief Executive Officer,
 D-Wave Systems Inc.
	 		 	
	
	I have authority to bind the Corporation.

  
 5EX-10.17

 Exhibit 10.17 

 
 

 
 SUSTAINABLE DEVELOPMENT TECHNOLOGY CANADA

 CONTRIBUTION AGREEMENT 

 TABLE OF CONTENTS 

 

							
	 1.0
	 	 INTERPRETATION
	  	 	3	 
			
	 2.0
	 	 TERM
	  	 	12	 
			
	 3.0
	 	 CONTRIBUTION PAYMENTS
	  	 	12	 
			
	 4.0
	 	 ELIGIBLE PROJECT COSTS
	  	 	16	 
			
	 5.0
	 	 REPORTING
	  	 	16	 
			
	 6.0
	 	 ACCOUNTS, AUDITS AND INSPECTIONS
	  	 	17	 
			
	 7.0
	 	 COVENANTS OF THE ELIGIBLE RECIPIENT
	  	 	17	 
			
	 8.0
	 	 REPRESENTATIONS AND WARRANTIES
	  	 	18	 
			
	 9.0
	 	 INTELLECTUAL PROPERTY
	  	 	21	 
			
	 10.0
	 	 CONFIDENTIAL INFORMATION
	  	 	22	 
			
	 11.0
	 	 INDEMNITY
	  	 	23	 
			
	 12.0
	 	 LIMITATION OF LIABILITY
	  	 	24	 
			
	 13.0
	 	 TERMINATION OF AGREEMENT
	  	 	24	 
			
	 14.0
	 	 ASSIGNMENT
	  	 	27	 
			
	 15.0
	 	 DISPUTE RESOLUTION
	  	 	27	 
			
	 16.0
	 	 PUBLICITY AND ACKNOWLEDGEMENTS
	  	 	28	 
			
	 17.0
	 	 NOTICES
	  	 	29	 
			
	 18.0
	 	 GENERAL CONTRACT PROVISIONS
	  	 	29	 
			
	 19.0
	 	 LIMITS ON FUNDING
	  	 	31	 

 SCHEDULES 
  

			
	Schedule A	  	Work Plan and Statement of Project Objectives
		
	Schedule B	  	Project Milestones, Deliverables, Metrics and Risks
		
	Schedule C	  	Project Financials
		
	Schedule D	  	Consortium Members, Participants and Key Suppliers/Subcontractors
		
	Schedule E	  	Project Reporting Requirements
		
	Schedule F	  	Environmental and Economic Benefits
		
	Schedule G	  	Accepted Practices

  

					
	SDTC-2017-A-3278	  	SDTC CONFIDENTIAL	  	Page 2 of 68

 CONTRIBUTION AGREEMENT 

THIS CONTRIBUTION AGREEMENT (the “Agreement”) is made in triplicate this 10th day of July, 2018 (the “Effective Date”) between Canada
Foundation for Sustainable Development Technology, a corporation without share capital continued under the Canada Foundation for Sustainable Development Technology Act (Canada) (“SDTC”) and D-Wave a corporation incorporated under the laws of British Columbia (hereinafter referred to as the “Eligible Recipient”). 

WHEREAS SDTC is a not for profit foundation constituted for the purpose of fostering the development and adoption of technologies that
contribute to Sustainable Development Technologies infrastructure in Canada by contributing to the rapid development, demonstration and pre-commercialization of technological solutions which address climate
change, clean air, clean water and clean soil; and 
 WHEREAS SDTC has entered into Funding Agreement Seven dated June 2, 2017
pertaining to the Sustainable Development Technology Fund (the “SD Tech Fund”) with Her Majesty the Queen in Right of Canada represented by the Minister of Industry; and 

WHEREAS SDTC and the Eligible Recipient agree that for the Eligible Recipient to perform the Project entitled “Development of a
Next-Generation Commercial Quantum Computer’’ as described in the Proposal dated June 14th, 2017 (the “Proposal Date”) and Work Plan attached hereto as Schedule A and assigned the Project number
SDTC-2017-A-3278 to develop and demonstrate the technology described therein for the purpose of commercializing it, the Eligible Recipient will require financial
assistance from SDTC; and 
 WHEREAS SDTC is willing to provide a Contribution to the Eligible Recipient for the Project on
and subject to the terms and conditions contained herein; and 
 WHEREAS SDTC has entered into a Shared Cost Arrangement Agreement
with the Funding Partner by which the Funding Partner has agreed to provide a portion of the funding regarding the Project contemplated by this Agreement. 

NOW THEREFORE in consideration of the premises and the mutual covenants contained herein SDTC and the Eligible Recipient agree as
follows: 
  

	1.0	 INTERPRETATION 

 

	1.1	 In this Agreement the following terms shall have the following meanings respectively and other terms may be
defined elsewhere in this Agreement 

 “Acceptance” means written acknowledgement by the Acceptance
Authority that the supplies or services including reports conform to applicable contract requirements, and “Accept” shall mean the act of providing an Acceptance. 

“Acceptance Authority” means SDTC or any of its delegates. 

“Accepted Practices” means generally accepted practices for use by Eligible Recipients in calculating, reporting and verifying
Technology Impacts and Project Impacts, as set out in Schedule G, attached hereto. 
 “Agreement”, “hereto”,
“herein”, “hereof”, “hereunder” and similar expressions refer to this Agreement, as may be amended, restated or replaced from time to time, and not to any particular section of this Agreement and includes the
Schedules attached hereto. 
 “Airborne Contaminants” means Criteria Air Contaminants, air toxics and other hazardous air
pollutant emissions including those found in the “List of Toxic Substances” in Schedule 1 of the 

  

					
	SDTC-2017-A-3278	  	SDTC CONFIDENTIAL	  	Page 3 of 68

 
CEPA and those referred to in Canada’s National Pollutant Release Inventory established pursuant to section 48 of the CEPA. 

“ASPE” means accounting standards for private enterprises that are, for the purposes of applying the same in accordance with
the provisions of this Agreement, in effect in Canada, including those published in the handbook of the Canadian Institute of Chartered Accountants. 

“Audited Project Report” shall have the meaning ascribed thereto in Section 6.2 hereof. 

“Background Intellectual Property” means all Intellectual Property that is not first conceived, developed or reduced to
practice by an Eligible Recipient pursuant to the Project and that is proprietary to and/or the confidential information of the Eligible Recipient. 

“Budget” shall have the meaning ascribed thereto in Schedule C hereof, as same may be amended in accordance with
Section 3.8 hereof. 
 “Business Day” shall mean any day other than a Saturday, Sunday or statutory holiday in the
Province of British Columbia. 
 “CEPA” means the Canadian Environmental Protection Act. 1999 S.C. 1999, c33. 

“Claim” has the meaning ascribed thereto in Section 3.3 hereof. 

“Completion Date” means the date on which the Project is completed in accordance with the Work Plan. 

“Competitive Entities” shall have the meaning ascribed thereto in Section 12.3 hereof. 

“Confidential Information” means any information, whether printed, in machine readable form or otherwise, that is proprietary
or confidential to the disclosing party and disclosed to the receiving party and which is (a) disclosed by the disclosing party in writing and is marked as “Confidential” (or like designation) at the time of disclosure, or
(b) disclosed by the disclosing party in any other manner and is identified as confidential at the time of disclosure and is also summarized and designated as confidential in a written memorandum delivered to the receiving party within thirty
(30) days of the disclosure. 
 “Consortium” means collectively the entities listed in Schedule D. 

“Consortium Member” means a member of the Consortium and listed under the heading “Consortium Members” in
Schedule D and, who through collaboration, cooperation and contribution of resources participates in the carrying out of the Project. 

“Contaminant” means any physical, chemical, biological or radiological substance in air, Soil, or Water that has an adverse
effect on human health or the environment. This includes any chemical substance whose concentration exceeds background concentrations or which is not naturally occurring in the environment. 

“Contaminated Sites” means sites at which Contaminants occur in concentrations: (1) above background levels and pose, or
are likely to pose, an immediate or long-term hazard to human health or the environment, or (2) exceeding levels specified in relevant federal, provincial, territorial, municipal and local policies and regulations. 

“Contingency Fee” means any payment or other compensation that is contingent upon or is calculated upon the basis of a degree
of success in soliciting or obtaining this Agreement, including the funding contemplated hereby, or negotiating the whole or any part of its terms. 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 4 of 68

 “Contribution” has the meaning ascribed thereto in Section 3.1 hereof.

 “Criteria Air Contaminant” means nitrogen oxides, sulphur oxides, carbon monoxide, volatile organic compounds, and
particulate matter including total particulate matter (TPM), particulate matter less than 10 micrometers (PM10) and particulate matter less than 2.5 micrometers (PM2.5). 

“Deliverables” means all Project requirements including but not limited to reports that are outlined in Schedule E.
Deliverables may be priced or not-priced. 
 “Demonstration” means the testing of a
design of new, modified or improved products, processes or services at pilot scale, field scale or initial full scale, provided that these same projects are not intended to be converted or used for industrial application or commercial exploitation
within the Period of Funding. It does not include routine or periodic alterations to existing products, production lines, manufacturing processes, services and other ongoing commercial operations even though those alterations may represent
improvements. 
 “Development” means the translation and technological advancement of applied research findings into a plan,
blueprint, design or implementation of new, modified or improved products, processes or services, including the creation and testing of a prototype that would not be intended to be commercially used within the Period of Funding. 

“Eligible Project” means a Project for which an application for funding is submitted to SDTC and the Funding Partner in
accordance with the “2017- 2020 Joint Call for Applications for the Development of Pre-Commercial Clean Energy Projects and Technologies” that is carried on in British Columbia by an Eligible
Recipient to develop and demonstrate new Sustainable Development Technologies, including: 
  

	 	a)	 technologies related to energy end-use technologies, such as
transportation and building technologies, and technologies to reduce ground level ozone; 

  

	 	b)	 technologies related to the hydrogen economy, such as mobile and stationary fuel cells, the production,
distribution and storage of hydrogen as well as transition fuels and related technologies; 

  

	 	c)	 technologies related to the sustainable production of fossil fuels (“clean fossil fuel
technologies”), such as the efficient combustion or conversion of fossil fuels (including advanced coal gasification), C02 capture and storage, more efficient technologies for surface and in-situ oil
sands production, and access to frontier and unconventional natural gas resources; 

  

	 	d)	 renewable energy technologies, including biomass, solar, wind, wave and tidal technologies;

  

	 	e)	 greenhouse gas emissions reduction technologies related to areas other than energy production and use,
including technologies to reduce C02 in cement manufacturing; 

  

	 	f)	 air quality improvement technologies, including toxic substance recovery systems, particulate control
technologies and acid rain technologies; 

  

	 	g)	 enabling or cross-cutting technologies, including sensors and controls, closed loop process waste or air, water
and soil treatment technologies, and process technologies for the purpose of increasing energy efficiency; 

  

	 	h)	 water quality and quantity improvement technologies, including, the conservation of water and the
disinfection and the mitigation or abatement of contaminants in water, sewage or 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 5 of 68

	 	
sludges generated in the treatment of wastewater or potable water; including associated equipment for detection, quantification, analysis and calibration; 

 

	 	I)	 waste management technologies, including those designed to prevent, reduce, or eliminate solid waste generation
or discharge, as well as materials recovery processes, composting, thermal treatment, and biotechnology-based systems, and associated equipment for detection, quantification, analysis, and calibration; or 

 

	 	j)	 soil quality improvement technologies, including the Remediation of Contaminants in Soil and Sediments, through
containment, removal, recovery, reduced bio-availability, and destruction methods applied either in-situ or ex-situ using
physical, chemical, thermal or biological processes, and associated equipment for detection, quantification, analysis, and calibration. 

“Eligible Project Costs” means costs which may be funded through a contribution by SDTC, are directly attributable to an
Eligible Project and include: 
  

	 	a)	 salaries and benefits, including administrative labour related to the Eligible Project; 

 

	 	b)	 professional, scientific, technical and contractual services costs (e.g. trades, contracts for Project and
financial audits, third party verification); 

  

	 	c)	 field testing services; 

 

	 	d)	 feasibility studies related to the Eligible Project; 

 

	 	e)	 license fees and permits; 

 

	 	f)	 supplies and equipment, including the costs to purchase, rent, fabricate and install supplies and equipment;

  

	 	g)	 purchase, installation, repair, up-grade, testing and commissioning of
equipment, materials and products, including diagnostic and testing tools and instruments; 

  

	 	h)	 furniture (pro-rated amount as applicable); 

 

	 	i)	 laboratory and field supplies and materials; 

 

	 	j)	 reasonable travel and conference expenses related to the Eligible Project; 

 

	 	k)	 printing and production services; 

 

	 	l)	 shipping costs, including customs costs; 

 

	 	m)	 utilities, waste removal, consumables (i.e. items used up completely during the Project such as motor oil,
lubricants, transmission fluids); 

  

	 	n)	 data collection services, including processing, analysis and management; 

 

	 	o)	 communication and distribution costs; 

 

	 	p)	 translation costs; 

  

	 	q)	 capital items specifically required for the delivery of the Eligible Project, including the lease of land or
license to use land, data collection equipment, prototypes, pilot plants or 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 6 of 68

	 	
demonstration facilities, provided they have no residual value beyond the Period of Funding, as determined by IFRS or ASPE; and 

 

	 	r)	 the depreciation expense of capital items during the Period of Funding (i.e. cost of utilization) that have
residual value as determined by IFRS or ASPE. 

 “Eligible Recipient” means, for the sole purpose of
receiving money from SDTC and not for any other purpose, a recipient, other than an Excluded Recipient, that is established in Canada, has expertise in Sustainable Development Technologies and is: 

 

	 	a)	 a for-profit corporation, a partnership, a limited partnership or a
business trust and has entered into a contract relating to the carrying out of an Eligible Project with one or more of the following legal entities: 

  

	 	i.	 another corporation; 

 

	 	ii.	 a partnership, a limited partnership or a business trust which has expertise in Sustainable Development
Technologies; 

  

	 	iii.	 a university, a college or another provincially accredited post-secondary educational institution;

  

	 	iv.	 a research institute; 

 

	 	v.	 an individual who has expertise in Sustainable Development Technologies; 

 

	 	vi.	 a not-for-profit corporation,
one of its purposes being to undertake, fund or otherwise support the Development or Demonstration of Sustainable Development Technologies; or 

  

	 	b)	 a for-profit corporation, a partnership, a limited partnership or a
business trust, and one or more of the following legal entities: 

  

	 	i.	 another corporation; 

 

	 	ii.	 a partnership, a limited partnership or a business trust which has expertise in Sustainable Development
Technologies; 

  

	 	iii.	 a university, a college or another provincially accredited post-secondary educational institution;

  

	 	iv.	 a research institute; 

 

	 	v.	 an individual who has expertise in Sustainable Development Technologies; or 

 

	 	vi.	 a not-for-profit corporation,
one of its purposes being to undertake, fund or otherwise support the Development or Demonstration of Sustainable Development Technologies; 

which have entered into a collaborative arrangement for carrying out an Eligible Project and are applying jointly to SDTC for the purpose of
receiving money from SDTC; or 
  

	 	c)	 a not-for-profit corporation,
one of its purposes being to undertake, fund or otherwise support the Development or Demonstration of Sustainable Development Technologies; 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 7 of 68

 “Emission Reduction” means the mitigation or abatement of Greenhouse Gas or
Airborne Contaminant emissions. 
 “Environmental Assessment” means an environmental assessment conducted in accordance with
the Canadian Environmental Assessment Act and the regulations thereunder, or an environmental assessment required under any other applicable federal, provincial, territorial or municipal legislation. 

“Environmental Benefits” means a reduction in negative environmental impacts as a result of Project and subsequent market
rollout activities. 
 “Evaluator” shall have the meaning ascribed in Section 7.10 hereof. 

“Event of Default” shall have the meaning ascribed in Section 13.1 hereof. 

“Excluded Recipient” means, subject to any exemption designated by the Government of Canada under the Funding Agreement any
(a) federal department (as defined in section 2 of the FAA), (b) departmental corporation (as defined in section 2 of the FAA), (c) parent Crown Corporation or wholly owned subsidiary of a parent Crown Corporation (as defined in subsection
83(1) of the FAA), (d) any not-for-profit corporation or trust controlled by a federal department, departmental corporation, parent Crown Corporation or wholly owned
subsidiary of a parent Crown Corporation, or (e) any provincial department or ministry or municipality. 
 “FAA” means the
Financial Administration Act (Canada). 
 “Financial Statements” shall have the meaning ascribed in Section 5.2
hereof. 
 “Funding Agreement” means the Funding Agreement Seven dated June 2, 2017 between SDTC and Her Majesty the
Queen in Right of Canada represented by the Minister of Industry. 
 “Funding Partner” means Her Majesty The Queen In Right
Of The Province Of British Columbia, represented by the Minister of Energy, Mines and Petroleum Resources, with whom SDTC has entered into agreements, understandings and/or cooperation arrangements from time to time. 

“Government Funding” means any grant, loan or other financial assistance from any federal, provincial or municipal government
or government agency, including funding from SDTC pursuant to this Agreement and federal and provincial SRED tax credits which relate to Project development work. 

“Governmental Entity” shall have the meaning ascribed in Section 8.1e) hereof. 

“Greenhouse Gases” means those gaseous constituents identified in article 1 of the United Nations Framework Convention on
Climate Change and further elaborated in Annex A of the Kyoto Protocol. 
 “Groundwater” means all subsurface water that
occurs beneath the water table in rocks and geologic formations that are fully saturated. 
 “Holdback” means money that is
retained by SDTC for future disbursement until all Project requirements have been completed as defined in Section 3.4 hereof. 

“IFRS” means international financial reporting standards which are, for the purposes of applying the same in accordance with
the provisions of this Agreement, in effect in Canada, including those published in the handbook of the Canadian Institute of Chartered Accountants, as the same are generally applied to Persons carrying on the type of business or activity carried on
by SDTC. 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 8 of 68

 “Insurance Policies” shall have the meaning ascribed in Section 7.8
hereof. 
 “Intellectual Property Right” means any and all (by whatever name or term known or designated) tangible and
intangible and now known or hereafter existing (a) rights associated with works of authorship throughout the universe, including but not limited to copyrights and moral rights, (b) trade secret rights, (c) patents, designs, algorithms
and other industrial property rights, (d) all other intellectual and industrial property and proprietary rights of every kind and nature throughout the universe and however designated (other than trademark and trade name rights and similar rights),
whether arising by operation of law, contract, license or otherwise, and (e) all registrations, applications, renewals, extensions, continuations, divisions or reissues thereof now or hereafter in force throughout the universe (including
without limitation rights in any of the foregoing). 
 “Market Impact” means the Technology Impact that is attributable to
the market penetration of the technology or technologies. 
 “Milestone” means a milestone determined in respect of the
Project as set forth in Schedule B attached hereto, the achievement of which entitles the Eligible Recipient to submit a Claim to SDTC for payment of an installment of the Contribution, which Milestone may be amended pursuant to Section 3.8
hereof. 
 “Minister” means the Minister within the meaning of the Canada Foundation for Sustainable Development
Technology Act R.S.C., 2001, c. 23. 
 “Non-Eligible Project Costs” mean any
costs other than Eligible Costs, and, for greater certainty include: 
  

	 	a)	 general overhead costs of the Eligible Recipient, including operating costs related to general maintenance and
repairs; 

  

	 	b)	 costs to decommission the Project; 

 

	 	c)	 capital costs associated with ongoing scientific or technical activities of the Eligible Recipient;

  

	 	d)	 costs associated with the subsequent diffusion of the technology; 

 

	 	e)	 fees and expenses incurred in relation to lobbying or government relation activities; 

 

	 	f)	 contingency fees; and 

 

	 	g)	 legal, financing fees and costs. 

“Payment Date” means the date on which an installment of the Contribution is paid by SDTC to the Eligible Recipient. 

“Period of Funding” means a maximum period of five (5) years during which the Project receives funding for the execution
of the Project, excluding the three (3) year reporting period which follows the completion of the Project. 
 “Primary
Effects” means the specific elements or activities for the reduction of Greenhouse Gases, Airborne Contaminants, Contaminants in Water or Contaminants in Soil (e.g. reducing Greenhouse Gas or Airborne Contaminant emissions, storing carbon
dioxide, enhancing Greenhouse Gas or Airborne Contaminant removals, increasing Water treatment efficiency, or 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 9 of 68

 
reducing human exposure to available Contaminants in Soil) that the Project is intended to achieve. 

“Project” means the Project described, or referred to in Schedule A, and defined in the Proposal. 

“Project Assessment Boundary” means the spatial and temporal limits of the relevant Primary Effects and Secondary Effects that
will be taken into account in the calculation of Emission Reductions, or reduction of Contaminants in air, Soil or Water, for the Project. 

“Project Impact” means the Technology Impact attributable to the Project, calculated upon completion of the Project. In
calculating the Project Impact, both positive and negative impacts within the Project Assessment Boundary shall be taken into consideration. 

“Project Intellectual Property” means any and all intellectual and industrial property developed, produced, created or
invented in connection with the performance of the Project including, without limitation, data, techniques, methods, processes, know-how, inventions, improvements, enhancements, designs, formulae, photographs,
drawings, plans, specifications, reports, studies, technical and procedural manuals, programs including firmware and software (in source code and object code form}, whether susceptible to copyright or not, proprietary and confidential information,
including technical data and customer and supplier lists, trade secrets and know-how and databases, and all Intellectual Property Rights therein. 

“Project Oversight Committee” shall have the meaning ascribed in Section 3.9 hereof. 

“Proposal” means the written document(s) submitted (whether electronically or otherwise) to SDTC by the Eligible Recipient in
response to the request for Phase II full proposal. 
 “Proposal Date” means the date of the Proposal specified in the third
recital to this Agreement. 
 “Remediation” means the improvement of a Contaminated Site to prevent, minimize or mitigate
damage to human health or the environment. Remediation involves the development and application of a planned approach that removes, destroys, contains or otherwise reduces the availability of Contaminants to receptors of concern. 

“Removal Enhancement” means the augmented removal of Greenhouse Gases and/or Airborne Contaminants from the atmosphere; or the
augmented removal or destruction of Contaminants in Water and Soil. 
 “SDIRS” means the Sustainable Development Impact
Reporting Suite as defined in Schedule E. 
 “Secondary Effects” means effects that are not Primary Effects and are
changes in the emissions of Greenhouse Gas or Airborne Contaminants, or Contaminants, resulting from the Project which are identifiable and quantifiable in a commercially reasonable manner. 

“Sediment” means an assemblage of individual particles of various origins either suspended in a water column (suspended
sediment) or situated at the bottom of a surface of water column (benthic sediment). 
 “Shared Cost Arrangement Agreement”
means the agreement between SDTC and the Funding Partner under which SDTC agreed to facilitate a contribution by the Funding Partner in respect of the Project. 

“Soil” means an assemblage of individual particles of various origins situated above the bedrock ranging in size from very
fine clays (<0.001 mm) through silts and sands, to gravels (>2.0 mm). 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 10 of 68

 “Surface Water” means natural water bodies, such as rivers, streams,
brooks, and lakes, as well as artificial water courses, such as irrigation, industrial and navigational canals, in direct contact with the atmosphere. 

“Sustainable Development” means development that meets the needs of the present without compromising the ability of future
generations to meet their own needs, including technologies that will mitigate, substitute or sequester greenhouse gas emissions and reduce Criteria Air Contaminants. 

“Sustainable Development Technologies” means technologies that make progress towards Sustainable Development and are related
to climate change, clean air, clean water or clean soil, and are designed to support the British Columbia government’s energy, economic, environmental and greenhouse gas reduction priorities and advance British Columbia’s clean energy
sector. 
 “Technology Impact” means the increase or decrease (through Emission Reductions or Removal Enhancements) of
emissions of Greenhouse Gases or Airborne Contaminants, and the increase or decrease of Contaminants in Water or Soil, attributable to a technology or technologies, as calculated using Accepted Practices. 

“Wastewater” means the contents of sanitary, storm, or combined sewer systems, including liquid wastes from human,
agricultural, biological processes, precipitation, runoff, manufacturing, materials processing, industries, institutions, landfills, and households, or similar activities, as well as intercepted storm water runoff. 

“Water” means Groundwater, Surface Water, Groundwater under direct influence of Surface Water, Wastewater or seawater. 

“Work Plan” means the Work Plan and Statement of Project Objectives for the Project attached hereto as Schedule A. 

 

	1.2	 In this Agreement: 

  

	 	a)	 unless the context otherwise requires, the singular shall include the plural and vice versa, and in particular
the definitions of words and expressions set forth in Section 1.1 hereof shall be applied to such words and expressions when used in either the singular or the plural form; 

 

	 	b)	 references to, or to any particular provision of, a document shall be construed as references to that document
as amended to the extent permitted by this Agreement and in force at any time; 

  

	 	c)	 any reference to a statutory provision shall include that provision as from time-to-time modified or re-enacted providing that in the case of modifications or re-enactments made after the date of this
agreement the same shall not have effective substantive change to that provision; 

  

	 	d)	 unless otherwise indicated, references to Articles, Sections, Subsections or Schedules should be construed as
references to the applicable Articles, Sections, Subsections or Schedules; 

  

	 	e)	 the division of this Agreement into Sections, the insertion of headings and the provision of a table of
contents are for convenience of reference only and are not to affect the construction or interpretation of this Agreement; 

  

	 	f)	 unless otherwise indicated all dollar amounts referred to in this Agreement, including the symbol“$”,
refer to lawful money of Canada; and 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 11 of 68

	 	g)	 unless the context otherwise requires, words importing a particular gender shall include the other gender.

  

	1.3	 In the event of any inconsistency between a provision in the body of this Agreement and a provision in a
Schedule or the Proposal, then: 

  

	 	a)	 a specific provision takes precedence over a general provision; and 

 

	 	b)	 otherwise, the following order of precedence shall apply: 

 

	 	i.	 this Agreement; 

  

	 	ii.	 the applicable Schedule; 

 

	 	iii.	 the Proposal. 

  

	1.4	 Where any representation, warranty or other statement in this Agreement is expressed to be made by any party to
its knowledge or is otherwise expressed to be limited in scope to matters known to a party, or of which a party is aware, it shall mean such knowledge as is actually known to, or which would have or should have come to the attention of, such party,
or if such party is a corporation the officers or employees of such party who have overall responsibility for or knowledge of the matters relevant to such statement and such party hereby confirms that it has made appropriate inquiries of all such
officers and employees. Any reference to an Eligible Recipient’s knowledge in respect to a Consortium Member refers to knowledge based on such Eligible Recipient’s due inquiry of employees of such Consortium Member. 

 

	1.5	 The following are the Schedules attached to and incorporated in this Agreement by reference and deemed to be a
part hereof: 

  

	 	a)	 Schedule A Work Plan and Statement of Project Objectives 

 

	 	b)	 Schedule B Project Milestones, Deliverables, Metrics and Risks 

 

	 	c)	 Schedule C Project Financials 

 

	 	d)	 Schedule D Consortium Members, Participants and Key Suppliers/Subcontractors 

 

	 	e)	 Schedule E Project Reporting Requirements 

 

	 	f)	 Schedule F Environmental and Economic Benefits 

 

	 	g)	 Schedule G Accepted Practices 

 

	2.0	 TERM 

  

	2.1	 The term of this Agreement shall commence on the Effective Date and, unless terminated earlier in accordance
with Section 13.0 hereof, shall continue in full force and effect until the Acceptance by SDTC of the third annual SDIRS Reports on the Project as provided in Sections 5.0 and 8.0 in Schedule E. 

 

	3.0	 CONTRIBUTION PAYMENTS 

 

	3.1	 Subject to the terms and conditions contained herein, SDTC shall pay to the Eligible Recipient up to the lesser
of: (a) 23.1 %of the Eligible Project Costs, or (b) $12,000,000 (the 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 12 of 68

 
“Contribution”), payable in installments as provided in Schedule C attached hereto. SDTC shall not make any payment on account of any cost incurred by the Eligible
Recipient prior to October 1, 2017 or in excess of the costs set out in the Budget attached hereto as Schedule C. Any Person that does not have legal capacity in Canada or Excluded Recipient may collaborate with the Eligible Recipient in
relation to the Project, and may contribute in-kind or advisory work, or perform work under contract to the Eligible Recipient, provided that such parties do not receive direct funding from SDTC. 

The Eligible Recipient acknowledges that a portion of the Contribution is being provided indirectly by the Funding Partner under the Shared
Cost Arrangement Agreement, and that SDTC is facilitating the payment of such portion by accepting payment from the Funding Partner and including such amounts in the Contribution provided for under this Agreement. 

 

	3.2	 Notwithstanding any other provision of this Agreement: 

 

	 	a)	 the Contribution shall not exceed fifty percent (50%) of the Eligible Project Costs for the Project;

  

	 	b)	 the Eligible Recipient shall contribute a minimum of twenty-five percent (25%) of the Eligible Project Costs
for the Project in cash, in-kind goods or services, or a combination thereof; 

  

	 	c)	 SDTC shall not have any obligation to pay the Contribution, or any installment thereof, unless SDTC has
received sufficient allocated funds from the Government of Canada and the Funding Partner to enable it to make such Contribution; 

  

	 	d)	 SDTC shall not have any obligation to pay the Contribution, or any installment thereof, unless the Eligible
Recipient(s), on or before each Payment Date, has established, to the satisfaction of SDTC, that the Eligible Recipient through enforceable commitments or otherwise, has the financial capacity to finance the Project; and 

 

	 	e)	 the Eligible Recipient shall declare and certify to SDTC in writing all direct sources of funding for the
Project, whether in place, requested or anticipated to be requested, including Government Funding identified by specific government programs. 

  

	3.3	 Installments of the Contribution shall be paid to the Eligible Recipient upon the achievement of various
Project Milestones and upon receipt by SDTC and SDTC Acceptance of all required reports. A written claim (“Claim”) requesting an installment payment for a Milestone and all associated required reports shall be submitted by the
Eligible Recipient upon the achievement of each Milestone in accordance with the schedule of payments set out in Schedule C attached hereto. Early delivery is permitted, provided that SDTC shall not be required to release payment until the
dates specified in Schedule C. Each Claim shall include a statement of Eligible Project Costs incurred in connection with the Milestone and shall be certified by an officer of the Eligible Recipient and accompanied by such supporting
documentation as SDTC may require. Where the amount of any item of a Claim exceeds $1000.00, invoices, receipts or other supporting documentation shall be available for review by SDTC to support the Claim with respect to such items. Upon Acceptance
by SDTC of a Claim for payment of an installment of the Contribution, SDTC shall pay to the Eligible Recipient such installment of the Contribution. SDTC shall have 45 days from the receipt of all required reports to provide notice of Acceptance or
rejection of a Claim. If a Claim is rejected by SDTC then SDTC will give notice of such rejection to the Eligible Recipient, together with its reasons therefore, and the Eligible Recipient shall have 20 days to provide revised reports in support of
such Claim. SDTC shall have 10 days to provide notice of Acceptance or rejection of revised reports. If the Claim is again rejected by SDTC then the aforementioned process and time periods for the submission of reports will continue until such

  

					
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time as the Claim is accepted or the Agreement is terminated. Any Claim that is reasonably rejected by SDTC after three (3) submissions shall constitute an Event of Default.

  

	3.4	 SDTC shall withhold ten percent (10%) (the “Holdback”) from each installment of the
Contribution payable hereunder until: 

  

	 	a)	 the Project has been completed to the satisfaction of SDTC; 

 

	 	b)	 all required reports have been received and approved by SDTC; and 

 

	 	c)	 SDTC has accepted the Audited Project Report; 

at which time, SDTC shall, subject to Section 3.5 hereof, pay the Holdback to the Eligible Recipient. 

 

	3.5	 The obligation of SDTC to make a payment to the Eligible Recipient of each installment of the Contribution is
subject to the fulfillment, or the waiver by SDTC, in its sole discretion, of each of the following conditions on or before the time of each such payment: 

  

	 	a)	 Accuracy of Representations and Warranties. Each representation and warranty contained in
Section 8.0 hereof shall be true on and as of the Payment Date with the same force and effect as though such representation and warranty had been made on and as of that date; and 

 

	 	b)	 Performance. The Eligible Recipient shall have performed and complied with all agreements and conditions
contained in this Agreement required to be performed or complied with by the Eligible Recipient prior to or on the Payment Date; and 

  

	 	c)	 Disbursement. Notwithstanding any other provision of this Agreement, including for greater certainty any
Schedule hereto, SDTC shall not, and shall have no obligation to, pay any part of a Claim subsequent to March 31, 2023 unless SDTC shall have first obtained in form satisfactory to SDTC authorization from the Government of Canada in accordance
with the Funding Agreement to disburse funds subsequent to such date. 

  

	3.6	 It is expressly understood that this Agreement has been authorized and delivered by SDTC in reliance on
environmental assurances and disclosures set forth in the Proposal, and that 

  

	 	a)	 where the Project requires an Environmental Assessment the Eligible Recipient has provided a summary of the
results; 

  

	 	b)	 where the Project does not require an Environmental Assessment, the Eligible Recipient has provided written
confirmation that a self-assessment of environmental impacts associated with the Project was conducted and that any necessary mitigating measures will be implemented; and 

 

	 	c)	 in the event part of the Project is a “Project” as defined in the Canadian Environmental
Assessment Act and is to be carried out or conducted outside of Canada, the Eligible Recipient has conducted an Environmental Assessment of the Project in accordance with the Canadian Environmental Assessment Act or in accordance with a
process that is in effect in the foreign state where the Project will take place and consistent with the Canadian Environmental Assessment Act. 

  

	3.7	 The Eligible Recipient acknowledges and agrees that upon the occurrence of any one or more of the following
events: 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 14 of 68

	 	a)	 SDTC has paid a Claim and later determines that the Claim contained a cost which was a Non-Eligible Project Cost; 

  

	 	b)	 The Eligible Recipient is not in compliance with Section 3.2b) hereof or provides less funding for the
Project than specified in the Budget; 

  

	 	c)	 SDTC’s Contribution to the Project exceeds 50% of the Project’s Eligible Project Costs; or

  

	 	d)	 The Eligible Recipient(s) receives revenue from the sale or commercial use of Project assets during the Period
of Funding; 

 the amount of the overpayment under (a) or (c) above, the shortfall in the Eligible Recipient’s
contribution to the Project as required under Section 3.2b) hereof, or the proceeds from the sale or commercial use of Project assets, as the case may be, shall constitute a debt due to SDTC and the Eligible Recipient shall repay such amount to
SDTC immediately. Without limitation, SDTC shall be entitled to set-off any such amount against future installments of the Contribution. With respect to (i) proceeds derived from the sale of a Project
asset or (ii) the revenue derived from the commercial use of Project assets during the Period of Funding, the Eligible Recipient shall pay to SDTC an amount equal to that proportion of such proceeds or revenue that SDTC’s Contribution
bears to the Eligible Project Costs of the Project, in each case to a maximum amount equal to the Contribution hereunder. For greater certainty, the sale of a Project asset shall include the sale of any capital item, material or equipment considered
to be an Eligible Project Cost and the commercial use of Project assets shall include the sale, lease or disposal of any goods or services produced using Project assets. 

The Eligible Recipient shall immediately give notice in writing to SDTC of the occurrence of an event set out in one or more of the Sections
3.7b), c) or d) hereof, specifying in detail the nature of the event. 
  

	3.8	 The Eligible Recipient may propose reasonable amendments to any or all of the Work Plan, Milestones or Budget,
and shall provide SDTC with written notice of the proposed amendment, including its scope, anticipated cost and anticipated results. SDTC shall have the right to review the proposed amendment and to consult with the Eligible Recipient and with any
external consultants as deemed appropriate by SDTC in respect thereof. Within sixty (60) days of SDTC’s receipt of the aforementioned amendment notice: (i) if SDTC at SDTC’s own discretion, after consultation with the Eligible
Recipient and with any external consultants as deemed appropriate by SDTC, does not agree with the proposed amendment, it shall not be Accepted; or (ii) if SDTC agrees with the proposed amendment, it shall so advise the Eligible Recipient in
writing and this Agreement shall be amended in accordance with Section 18.3 hereof. Lack of consent by SDTC to a proposed amendment shall not preclude the Eligible Recipient from submitting any other reasonable proposed amendment in respect of
any or all of the Work Plan, Milestones or Budget at any other time. 

  

	3.9	 The Eligible Recipient acknowledges that SDTC and the Funding Partner shall establish a project oversight
committee (the “Project Oversight Committee”) for the Project, consisting of representatives appointed by the Funding Partner and SDTC. The Funding Partner will be entitled to appoint representatives to the Project Oversight
Committee, and SDTC will be entitled to appoint representatives to the Project Oversight Committee. The objectives of the Project Oversight Committee are to: 

  

	 	a)	 meet with such frequency as may be required for the effective operation of the Project; 

 

	 	b)	 monitor the progress of the Project; 

 

	 	c)	 review the Eligible Recipient’s Claims; 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 15 of 68

	 	d)	 provide guidance to the Eligible Recipient about the Project regarding technical and financial matters as
needed; 

  

	 	e)	 provide strategic direction to the Eligible Recipient; and 

 

	 	f)	 make recommendations to the Eligible Recipient on the Budget, as requested. 

 

	3.10	 The Eligible Recipient shall forward all invoices and applicable reports quoting this Agreement number 2017-A-3278 to: 

 SDTC 

45 O’Connor Street 
 Suite
1850 
 Ottawa, Ontario 
 K1P
1A4 
 Attention: Aman Chahal 

Manager, Projects 
  

	4.0	 ELIGIBLE PROJECT COSTS 

 

	4.1	 The Eligible Recipient hereby certifies that (a) all costs described as Eligible Project Costs in Schedule
C and submitted to SDTC for payment of an installment of the Contribution are accurate and are Eligible Project Costs of the Project, (b) all labour rates submitted in the budget as Eligible Project Costs are equal to the salary of the actual
employee performing the work or if paid to a consultant and not an employee are the lowest labour rates charged by any consultant to a third party, and (c) the cost claimed for any services or equipment submitted as an Eligible Project Cost
shall not include profit to the Eligible Recipient or any Consortium Member or any party related to or otherwise not at arm’s length to any of them and must be supported by invoice, and (d) all costs for labour rates claimed will be
directly related to the person undertaking the work. 

  

	4.2	 SDTC will determine whether a cost is an Eligible Project Cost or a
Non-Eligible Project Cost and such determination shall be final and binding upon the Eligible Recipient. 

  

	5.0	 REPORTING 

  

	5.1	 The Eligible Recipient shall submit to SDTC, at least annually, in such form and containing such information as
SDTC may require from time to time the reports and information set forth in Schedule E, together with such other information and reports as may from time to time reasonably be requested by SDTC. 

 

	5.2	 Upon request from SDTC the Eligible Recipient will furnish to SDTC (i) the unaudited balance sheet of the
Eligible Recipient (the “Balance Sheet”) as at such interim period as may be reasonably requested by SDTC and the related unaudited statements of operations and cash flows for the requested period, and (ii) the audited balance
sheet of the Eligible Recipient and the related audited statements of operations and cash flows for the fiscal year then ended, (collectively, the “Financial Statements”). The Financial Statements shall be complete and correct,
shall be in accordance with the books and records of the Eligible Recipient and present fairly the financial condition and results of operations of the Eligible Recipient, as at the dates and for the periods indicated, and shall be prepared in
accordance with IFRS or ASPE, consistently applied. 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 16 of 68

	5.3	 Subject to Section 10.0 hereof, the Eligible Recipient hereby grants to SDTC a limited license (with a
right to sublicense to the Funding Partner) to copy and distribute all information and/or reports submitted to it pursuant to this Section 5.0 hereof for the purposes of SDTC (or the Funding Partner) fulfilling its obligations hereunder and its
obligations to the Government of Canada or other governmental authorities. 

  

	5.4	 Upon completion of the Project, the Eligible Recipient shall provide SDTC with a certificate of an officer of
the Eligible Recipient setting out any contributions or payments received by the Eligible Recipient in respect of the Project in addition to, or from sources other than, those named in its Proposal, and shall further certify as to any amounts owing
to SDTC resulting from such over-funding and/or over-payment either as a result of changes in Project costs or accounting errors, or both. 

  

	6.0	 ACCOUNTS, AUDITS AND INSPECTIONS 

 

	6.1	 During the term of this Agreement, and for a further period of not less than four (4) years subsequent to
termination the Eligible Recipient(s) shall: 

  

	 	a)	 maintain and preserve proper books, accounts and records of its financial contributions both, cash and in-kind, all its costs and expenses incurred and paid in connection with the Project and shall keep invoices, receipts and vouchers relating thereto; 

 

	 	b)	 maintain and preserve proper and accurate records relating to the environmental impact, sales revenues,
employment impacts, technology developments (including patents and patent applications) and other impacts of the Project; and 

  

	 	c)	 on demand, make available to SDTC such books, accounts, records, invoices, receipts and vouchers referred to
above and permit SDTC to examine, audit and take copies and extracts from such documents. 

  

	6.2	 The Project shall be audited at the expense of the Eligible Recipient, by an auditor acceptable to SDTC at the
end of the Project and such auditor shall prepare a final financial project audit report (the “Audited Project Report”) based upon such audit. The Project may also be audited by SDTC’s auditors or another auditor acceptable to
SDTC, at SDTC’s cost, at such other time or times as SDTC may require. 

  

	6.3	 The Eligible Recipient shall ensure that SDTC or its designate or the Funding Partner has access during normal
working hours to any premise, or place where the Project is being carried out for the purpose of inspecting and assessing the progress of the Project and all matters relating thereto. 

 

	6.4	 The Eligible Recipient shall permit the Minister and the Auditor General of Canada or their representatives to
audit, or cause to have audited, the accounts and records of the Eligible Recipient as those accounts and records relate to the Project and shall cooperate with and allow access to the Minister and the Auditor General of Canada to the books and
records of the Eligible Recipient and to the business premises and the Project site of the Eligible Recipient in order for the Minister and the Auditor General of Canada to conduct any such audit. 

 

	7.0	 COVENANTS OF THE ELIGIBLE RECIPIENT 

 

	7.1	 The Eligible Recipient shall complete the Project by the Completion Date unless the Completion Date is extended
by SDTC in consultation with the Funding Partner. 

  

	7.2	 The Eligible Recipient shall carry out the Project promptly, diligently and in a professional manner and in
accordance with the terms and conditions of this Agreement, including all 

  

					
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workplans, milestones, financials and all other requirements set out in the schedules, and the Proposal. 

  

	7.3	 The Eligible Recipient shall comply with all federal, provincial and municipal laws in relation to the Project.

  

	7.4	 The Eligible Recipient shall use commercially reasonable efforts to ensure that within three (3) years of the
Completion Date the Project Intellectual Property and technology developed in connection with the Project, including any products, processes or services relating thereto, is made commercially available for the benefit of Canadians.

  

	7.5	 The Eligible Recipient shall comply in carrying out the Project, in all material respects, with all
applicable environmental laws as such laws relate to the Project, and, to the extent that the Project was the subject of a self-assessment of environmental impacts to cause all mitigation measures identified to be fully undertaken and performed.

  

	7.6	 Except as provided in the Proposal, the Eligible Recipient shall not subcontract all or any part of the Project
unless the Eligible Recipient has obtained the prior written consent of SDTC. Every subcontract made by the Eligible Recipient shall provide that the subcontractor shall comply with the terms and conditions of this Agreement that are applicable to
the subcontract. 

  

	7.7	 The Eligible Recipient will not knowingly permit any member of the Legislative Assembly of British Columbia to
be admitted, directly or indirectly to any share or part of any contract, agent or commission made pursuant to this Agreement or in relation to the Project or to obtain any benefits arising therefrom. 

 

	7.8	 The Eligible Recipient shall maintain valid policies of employer’s liability insurance and of insurance
with respect to its properties and business (the “Insurance Policies”) of the kinds and in the amounts which are customary for the nature and scope of the business carried on by the Eligible Recipient and for the Project.

  

	7.9	 The Eligible Recipient shall give written notice to SDTC of any (i) change in control of the Eligible
Recipient, and (ii) any change in the composition of the Consortium Members or other entities listed in Schedule D attached hereto. 

  

	7.10	 Subject to any confidentiality obligations of the Eligible Recipient to third parties, the Eligible Recipient
will provide access to any individual conducting an evaluation of SDTC that is in the employ of, or engaged by, Her Majesty the Queen in Right of Canada, as represented by the Minister (the “Evaluator”) to the appropriate records
and information sources relating to the Project to enable the Evaluator to conduct such evaluation and the Eligible Recipient shall cooperate with the Evaluator in respect of the Evaluator carrying out such evaluation of SDTC. 

 

	8.0	 REPRESENTATIONS AND WARRANTIES 

 

	8.1	 The Eligible Recipient hereby represents and warrants on its own behalf and on behalf of the Consortium and
each Consortium Member, and the Eligible Recipient hereby acknowledges that SDTC is relying on such representations and warranties for the purpose of entering into this Agreement and making payment of any installment of the Contribution:

  

	 	a)	 Corporate Power and Due Authorization 

The Eligible Recipient has the corporate power and capacity to enter into and to perform its obligations under this Agreement. This Agreement
has been duly authorized, executed and delivered by the Eligible Recipient and is a valid and binding obligation of the Eligible Recipient enforceable against it in accordance with its terms, subject to bankruptcy,

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 18 of 68

 
insolvency, moratorium, reorganization and other laws relating to or affecting the enforcement of creditors’ rights generally, and the fact that equitable remedies, including the remedies of
specific performance and injunction, may only be granted in the discretion of a court. 
  

	 	b)	 Incorporation and Status 

The Eligible Recipient is duly incorporated and organized and validly existing under the laws of the jurisdiction of its incorporation and is
in good standing in each jurisdiction where, by reason of its business or assets, it is required to be qualified or licensed. 
  

	 	c)	 Contribution Eligibility 

The Eligible Recipient satisfies the eligibility requirements established in this Agreement and the Project Is an Eligible Project. 

 

	 	d)	 Sources of Funding 

The Eligible Recipient has satisfied the requirements of Section 3.2 hereof. All direct sources of funding for the Project, including
funding from government programs, are set out in Schedule C, attached hereto in the Eligible Project Funding Contribution Table. 
  

	 	e)	 No Conflicts 

The execution and performance of the transactions contemplated by this Agreement and compliance with their respective provisions by the
Eligible Recipient will not (i) conflict with or violate any provision of the Articles of Incorporation or By-laws of the Eligible Recipient, (ii) except as provided for or required in this
Agreement, require on the part of the Eligible Recipient any filing with, or any permit, authorization, consent or approval of, any court, arbitration tribunal, administrative agency or commission or other governmental or regulatory authority or
agency (each of the foregoing is hereafter referred to as a “Governmental Entity”), (iii) conflict with, result in a breach of, constitute (with or without due notice or lapse of time or both) a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice, consent or waiver under, any contract, lease, sublease, license, sublicense, franchise, permit, indenture, agreement or mortgage for
borrowed money, instrument of indebtedness or other arrangement to which the Eligible Recipient is a party or by which the Eligible Recipient is bound or to which its assets are subject, other than any of the foregoing events which do not and will
not, individually or in the aggregate, have a material adverse effect on the Eligible Recipient, (iv) result in the imposition of any security interest upon any assets of the Eligible Recipient, or (v) violate any order, writ, injunction,
decree, statute, law, rule or regulation applicable to the Eligible Recipient or any of its properties or assets. 
  

	 	f)	 Governmental Consents 

No consent, approval, order or authorization of, or registration, qualification, designation, declaration or filing with, any Governmental
Entity is required on the part of the Eligible Recipient in connection with the execution and delivery of this Agreement except such filings as shall have been made prior to and shall be effective on and as of the Effective Date. 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 19 of 68

	 	g)	 Accuracy of Proposal 

All factual matters contained in the Proposal and in all material submitted in support are true and accurate, and that all estimates,
forecasts and other related matters involving judgment were prepared in good faith and to the best of its ability, skill and judgment and that all costs submitted to SDTC as Eligible Project Costs for reimbursement as an installment of the
Contribution hereunder are Eligible Project Costs. 
  

	 	h)	 Litigation 

There is no action, suit, proceeding, or judgment or governmental inquiry or investigation, pending, or, to the best of the Eligible
Recipient’s knowledge, any basis therefore or threat thereof, against the Eligible Recipient or to the best of the Eligible Recipient’s knowledge, any of the Consortium Members, or which questions the validity of this Agreement, or the
right of the Eligible Recipient to enter into this Agreement, or which might result, either individually or in the aggregate, in a material adverse effect, nor is there any litigation pending, or, to the best of the Eligible Recipient’s
knowledge, any basis therefore or threat thereof, against the Eligible Recipient or any Consortium Member by reason of the actual or proposed activities of the Eligible Recipient or the Consortium Member. 

 

	 	i)	 Insurance 

The Insurance Policies are in full force and effect and the Eligible Recipient is not in default (i) with respect to the payment of any
premium or (ii) with respect to any material provisions contained in such policies. The Eligible Recipient and, to the best knowledge of the Eligible Recipient, each Consortium Member maintain valid policies of worker’s compensation
insurance to the extent required by law. 
  

	 	j)	 Absence of Changes 

Since the Proposal Date, there has not been (a) any change in the assets, liabilities, financial condition or operations of the Eligible
Recipient or the Consortium or any Consortium Member from that reflected in the Proposal and the Financial Statements, except changes in the ordinary course of business that have not been, either individually or in the aggregate, materially adverse;
(b) any damage, destruction or loss, whether or not covered by insurance, materially and adversely affecting the Project or the properties or business of the Eligible Recipient or any Consortium Member. 

 

	 	k)	 Permits 

The Eligible Recipient has all requisite licenses, permits and certificates, including environmental, work, health and safety permits, from
federal, provincial and local authorities necessary to conduct its business and to carry out the Project. The Eligible Recipient and each Consortium Member has complied, and will in carrying out the Project comply, in all material respects, with all
applicable laws. 
  

	 	l)	 Environmental Matters 

The Eligible Recipient and each Consortium Member has complied, and will comply in carrying out the Project, in all material respects, with
all applicable environmental laws as such laws relate to the Project. There is no pending or, to the best knowledge of the Eligible Recipient, threatened civil or criminal litigation, written notice of violation, formal administrative proceeding, or
investigation, inquiry or information request by any Governmental Entity, relating to any environmental law involving the Eligible Recipient or 

  

					
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any Consortium Member. The Eligible Recipient and each Consortium Member has complied with any and all requirements to perform an Environmental Assessment with respect to the Project and has
notified SDTC of the need for, and the completion of such Environmental Assessment(s). 
  

	 	m)	 Disclosures 

Neither the Proposal, this Agreement, nor any Schedule attached hereto, nor any report, certificate or instrument furnished to SDTC in
connection with the transactions contemplated by this Agreement, including the financial projections provided by the Eligible Recipient, when read together, contains or will contain any untrue statement of a material fact or omits or will omit to
state a material fact necessary in order to make the statements contained herein or therein, in light of the circumstances under which they were made, not misleading. 
  

	 	n)	 International Agreements 

The Eligible Recipient has conducted an assessment of trade and competition impacts, including compliance with international agreements and
has concluded that the marketing and commercialization of this technology resulting from the Project will not be in conflict with any international agreements. 
  

	 	o)	 Contingency Fees 

The Eligible Recipient has not incurred any liability for, and will not, pay or agree to pay, either directly or indirectly, any Contingency
Fees for (i) the solicitation, negotiation, or obtaining of the Contribution for the Project, (ii) the transactions contemplated by this Agreement, or (iii) the entering into of this Agreement, to any person, including a broker,
consultant or advisor. 
  

	8.2	 SDTC hereby represents and warrants to the Eligible Recipient and hereby acknowledges that the Eligible
Recipient is relying on such representations and warranties for the purpose of entering into this Agreement: 

  

	 	a)	 Corporate Power and Due Authorization 

SDTC has the corporate power and capacity to enter into and to perform its obligations under this Agreement. This Agreement has been duly
authorized, executed and delivered by SDTC and is a valid and binding obligation of SDTC enforceable against it in accordance with its terms, subject to bankruptcy, insolvency, moratorium, reorganization and other laws relating to or affecting the
enforcement of creditors’ rights generally, and the fact that equitable remedies, including the remedies of specific performance and injunction, may only be granted in the discretion of a court. 

 

	 	b)	 Incorporation and Status 

SDTC is duly incorporated and organized and validly existing under the laws of Canada and is in good standing in each jurisdiction where, by
reason of its business or assets, it is required to be qualified or licensed. 
  

	9.0	 INTELLECTUAL PROPERTY 

 

	9.1	 Subject to Section 13.2d) hereof, title to all Intellectual Property Rights in Project Intellectual
Property shall vest in the Eligible Recipient and/or Consortium Members, in the manner agreed 

  

					
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upon by the Eligible Recipient and the Consortium Members, and, for greater certainty, shall not vest in SDTC. 

 

	9.2	 The Eligible Recipient shall ensure that all employees or contractors working on the Project assign any and all
Intellectual Property Rights in and to any Project Intellectual Property to the Eligible Recipient or a Consortium Member and that each such employee or contractor or any other person working on or contributing to the development of Project
Intellectual Property executes a written permanent waiver of moral rights (as that term is defined in the Copyright Act, R.S.C., c. C-42} in any copyright arising in connection with the Project Intellectual
Property. 

  

	9.3	 The Eligible Recipient shall disclose to SDTC all arrangements and agreements among the Consortium Members with
respect to the ownership of all Project Intellectual Property. 

  

	9.4	 The Eligible Recipient shall disclose to SDTC, concurrent with the execution of this Agreement, all security
interests, liens, encumbrances or other restrictions (each, a “Security Interest”) on or against all Project Intellectual Property. In addition, throughout the term of this Agreement, the Eligible Recipient shall disclose to SDTC in
writing in advance its intention to grant over all or any part of the Project Intellectual Property a Security Interest in favour of a third party, including any Consortium Member. The Eligible Recipient will update such information promptly to SDTC
in writing should any such Security Interest, or the details thereof change, terminate or be amended in any way throughout the term of this Agreement. 

  

	9.5	 The Eligible Recipient agrees to do and execute or cause to be made, done or executed all such further and
other things, acts, deeds, documents, applications, specifications, oaths, assignments and assurances as may be necessary or reasonably required to give full effect to the assignment to Canada pursuant to Section 13.2d) hereof of the Eligible
Recipient’s rights in the Project Intellectual Property, including all Intellectual Property Rights therein or relating thereto. The Eligible Recipient hereby irrevocably designates and appoints SDTC and its duly authorized officers and agents
as the Eligible Recipient’s agent and attorney in fact, to act for and on behalf of the Eligible Recipient to execute and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters
patent or copyright registrations thereon with the same legal force and effect as if executed by the Eligible Recipient. 

  

	10.0	 CONFIDENTIAL INFORMATION 

 

	10.1	 Any Confidential Information received by either party hereto (a “receiving party”) pursuant to
this Agreement shall be used, disclosed, or copied, only for the purposes of, and only in accordance with, this Agreement. The receiving party shall use, as a minimum, the same degree of care as it uses to protect its own Confidential Information of
a similar nature, but no less than reasonable care, to prevent the unauthorized use, disclosure or publication of Confidential Information. Without limiting the generality of the foregoing: 

 

	 	a)	 the receiving party shall only disclose Confidential Information to its bona fide employees, contractors or
suppliers who need to obtain access thereto for purposes consistent with this Agreement; 

  

	 	b)	 the receiving party shall not make or have made any copies of Confidential Information except those copies
which are necessary for the purposes of this Agreement; and 

  

	 	c)	 the receiving party shall affix to any copies it makes of the Confidential Information, all proprietary notices
or legends affixed to the Confidential Information as they appear on the copies of the Confidential Information originally received from the disclosing party. 

  

					
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	10.2	 The Eligible Recipient recognizes the necessity for SDTC to provide verification pursuant to the Funding
Agreement to Her Majesty the Queen (the “Crown”) in Right of Canada as represented by the Minister of Industry that the purpose and objectives of SDTC are being achieved. The Eligible Recipient shall cooperate with SDTC to enable
SDTC to effectively report to the Crown, provided however that SDTC shall not disclose Confidential Information received from the Eligible Recipient to the Crown unless such Information is aggregated with similar information from other projects and
is not attributed to the Eligible Recipient or other Consortium Members, in which case the information will be deemed not to be Confidential Information. Such aggregated information may include Greenhouse Gas emissions reduction and clean air
impacts reporting, both estimated and actual, and all other information reported under Section 5.0 hereof after it has been compiled by sector, sub-sector, technology segment and/or region.

  

	10.3	 The receiving party shall not be bound by obligations restricting disclosure and use set forth in this
Agreement with respect to any Confidential Information which: 

  

	 	a)	 was known by the receiving party prior to disclosure, as evidenced by its business records;

  

	 	b)	 was lawfully in the public domain prior to its disclosure, or lawfully becomes publicly available other than
through a breach of this Agreement or any other confidentiality obligation on behalf of any third party; 

  

	 	c)	 was disclosed to the receiving party by a third party provided such third party, or any other party from whom
such third party receives such information, is not in breach of any confidentiality obligation in respect of such information; 

  

	 	d)	 is independently developed by the receiving party, as evidenced by its business records; or

  

	 	e)	 is disclosed when such disclosure is compelled pursuant to legal, judicial, or administrative proceedings, or
otherwise required by law, provided that the receiving party advises the disclosing party of any such disclosure in a timely manner prior to making any such disclosure (so that either party can apply for such legal protection as may be available
with respect to the confidentiality of the information which is to be disclosed), and provided that the receiving party shall apply for such legal protection as may be available with respect to the confidentiality of the Confidential Information
which is required to be disclosed. 

  

	10.4	 Except for disclosures authorized under the terms of this Agreement, the receiving party shall notify the
disclosing party immediately upon learning of any disclosure of the disclosing party’s Confidential Information. 

  

	10.5	 Notwithstanding any other provision of this Agreement, SDTC may provide any reports, financial statements,
certificates or other documents, and any Confidential Information or other information, received from the Eligible Recipient under terms of this Agreement to the Funding Partner, so long as the Funding Partner is subject to the obligations of
confidentiality with respect thereto that are substantially the same (with appropriate adjustments to address the different governance structures of SDTC and the Funding Partner) as SDTC’s obligations of confidentiality under this Agreement.

  

	11.0	 INDEMNITY 

  

	11.1	 The Eligible Recipient shall indemnify and save harmless SDTC and its board of directors, members, employees
and agents and the Government of Canada from and against any and all 

  

					
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claims, damages, loss, costs and expenses which they or any of them may at any time incur or suffer as a result of or arising out of: 

 

	 	a)	 any injury to persons (including injuries resulting in death) or loss of or damage to property which may be or
be alleged to be caused by or suffered as a result of the carrying out of the Project or any part thereof, except to the extent caused by the negligence of SDTC, its board members, employees or agents; 

 

	 	b)	 any claim, demand or action for the infringement or alleged infringement of any Intellectual Property Right of
a third party based upon the use thereof by the Eligible Recipient or upon the use of the Project Intellectual Property by SDTC or the Government of Canada in accordance with the terms hereof; and 

 

	 	c)	 any claim, demand or action made by a third party against them or any of them based upon SDTC’s capacity
as a provider of financial assistance under this Agreement, including without limitation, any claim in respect of materials or services provided by a third party to the Eligible Recipient or to a subcontractor or supplier of the Eligible Recipient.

  

	12.0	 LIMITATION OF LIABILITY 

 

	12.1	 IN NO EVENT SHALL EITHER PARTY HAVE ANY LIABILITY FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL
DAMAGES, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING NEGLIGENCE), ARISING OUT OF THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO LOSS OF ANTICIPATED PROFITS, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE
LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. 

  

	12.2	 Except for claims under Section 11.1b) hereof, neither party shall be liable to the other for damages in
excess of the amount of the Contribution actually paid to the Eligible Recipient by SDTC pursuant to this Agreement. 

  

	12.3	 The Eligible Recipient hereby acknowledges that SDTC may provide funding to numerous companies, entities and
consortia, some of which may be competitive with the Eligible Recipient or Consortium Members or which may be competitive with the technology developed in connection with the Project (“Competitive Entities”). SDTC shall not be
liable to the Eligible Recipient for any claim arising out of, or based on: (i) the provision of funding by SDTC to any Competitive Entity; or (ii) actions taken by any partner, officer or other representative of SDTC to assist a
Competitive Entity (in the capacity as a director of such company or otherwise), whether or not such action has a detrimental effect on the Eligible Recipient or the Project, provided that SDTC will in all circumstances maintain the confidentiality
of all information provided to it by the Eligible Recipient in accordance with the terms and conditions hereof. 

  

	13.0	 TERMINATION OF AGREEMENT 

 

	13.1	 The following shall constitute events of default (each an “Event of Default”) under this
Agreement: 

  

	 	a)	 the Eligible Recipient becomes bankrupt or insolvent, goes into receivership, or takes the benefit of any
statute from time to time in force relating to bankrupt or insolvent debtors; 

  

	 	b)	 an order is made or resolution passed for the winding up of the Eligible Recipient, or the Eligible Recipient
is dissolved; 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 24 of 68

	 	c)	 the Eligible Recipient has knowingly made any misrepresentations to SDTC in respect of the Proposal or this
Agreement; 

  

	 	d)	 the Eligible Recipient Is in material breach of this Agreement and such material breach has not been remedied
by the Eligible Recipient within sixty (60) days of receiving notice of such material breach from SDTC; or 

  

	 	e)	 the rejection by SDTC of the third consecutive submission of any one report in support of a Claim under
Section 3.3 hereof. 

  

	13.2	 Upon the occurrence of an Event of Default, SDTC may, in its sole discretion exercise one or more of the
following options: 

  

	 	a)	 terminate the whole or any part of this Agreement; 

 

	 	b)	 suspend or terminate SDTC’s obligation to pay any further installments of the Contribution in respect of
the Project, including monies due or accruing due which have not yet been paid; 

  

	 	c)	 in the event of a breach by the Eligible Recipient of Section 3.2 hereof, exercise the remedies described
in Section 3.7 hereof; 

  

	 	d)	 upon fifty (50) days written notice to the Eligible Recipient and provided that the Eligible Recipient has
not repaid the disbursed Contribution prior to the expiry of such fifty (50) day period, cause the Eligible Recipient to convey directly to Canada any and all Project Intellectual Property and obtain from the Eligible Recipient any required
license to exercise the Intellectual Property Rights in the Background Intellectual Property; 

  

	 	e)	 upon fifty (50) days written notice to the Eligible Recipient and provided that the Eligible Recipient has
not repaid the disbursed Contribution prior to the expiry of such fifty (50) day period, have the Eligible Recipient transfer and assign to SDTC all of the Eligible Recipient’s right, title and interest in and to equipment, capital assets
and supplies purchased by the Eligible Recipient to carry out the Project (to the extent such were acquired and reimbursed by SDTC); and/or 

  

	 	f)	 direct the Eligible Recipient to repay forthwith all or any part of the Contribution paid by SDTC pursuant to
this Agreement. 

  

	13.3	 In the event that SDTC exercises its rights under Section 13.2d) hereof, the Eligible Recipient shall:

  

	 	a)	 obtain a written permanent waiver of moral rights (as that term is defined in the Copyright Act, R.S.C., c. C-42), in a form acceptable to SDTC, from every author that contributed to any Intellectual Property Rights which arose from the Project and which are subject to copyright protection; and 

 

	 	b)	 at the expense of SDTC, afford Canada all reasonable assistance in the preparation of applications and in the
prosecution of any applications for registration of any Intellectual Property Right which arose from the Project. 

  

	13.4	 In the event that the Eligible Recipient determines in good faith that (i) the Project should be
terminated prior to completion or (ii) at any time after completion of the Project commercialization is not reasonably commercially feasible, the Eligible Recipient shall provide SDTC with detailed written reasons for the termination of the
Project or termination of commercialization as the case may be. SDTC shall have a period of sixty (60) days to assess 

  

					
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the Project and the reasons for the Eligible Recipient’s determination that the Project should not continue. In connection with such assessment by SDTC, SDTC may engage the services of
consultants and advisors and the Eligible Recipient shall be responsible for the fees and expenses relating thereto. In the event that SDTC agrees that the Project or commercialization as the case may be, should be terminated, SDTC shall give notice
to the Eligible Recipient that as of the date of such notice from SDTC: 

  

	 	a)	 this Agreement shall be terminated; and 

 

	 	b)	 SDTC shall have no obligation to pay any further installments of the Contribution in respect of the Project,
other than amounts due or accruing due as of the date of termination which have not yet been paid. 

  

	13.5	 In the event that SDTC does not agree that the Project should be terminated, then SDTC shall give notice to the
Eligible Recipient that as of the date of such notice from SDTC: 

  

	 	a)	 this Agreement shall be terminated in accordance with Section 13.2 hereof; 

 

	 	b)	 SDTC shall have no obligation to pay any further installments of the Contribution in respect of the Project,
including amounts due or accruing due as of the date of termination which have not yet been paid; and 

  

	 	c)	 upon fifty (50) days written notice to the Eligible Recipient and provided that the Eligible Recipient has
not repaid the disbursed Contribution prior to the expiry of such fifty (50) day period, the Eligible Recipient shall transfer and assign to Canada all of the Eligible Recipient’s right, title and interest in and to the Project
Intellectual Property. 

  

	13.6	 SDTC may terminate this Agreement, terminate its obligations to make Contributions or reduce the amount of
Contributions otherwise required to be made pursuant to this Agreement upon thirty (30) days written notice to the Eligible Recipient (“Notice of Termination”), without penalty in the event that: 

 

	 	a)	 the Funding Agreement is materially amended, expired or terminated for any reason; 

 

	 	b)	 SDTC has not received sufficient allocated funds from the Government of Canada to enable SDTC to pay the
Contribution; or 

  

	 	c)	 an order is made or resolution passed for the winding up of SDTC or the dissolution of SDTC.

  

	13.7	 If this Agreement is terminated in accordance with section 13.6: 

 

	 	a)	 any Claims submitted by the Eligible Recipient prior to the effective date of the Notice of Termination shall
be processed by SDTC in accordance with the terms hereof; 

  

	 	b)	 SDTC shall have no obligation to pay any further installments of the Contribution, including amounts due or
accruing as of the effective date of the Notice of Termination; and 

  

	 	c)	 the Eligible Recipient releases SDTC from any and all claims relating to such termination (other than the
payment of any part of the Contribution properly payable by SDTC to the Eligible Recipient in accordance with the terms and conditions hereof). 

  

	13.8	 If upon expiration or termination of this Agreement for any reason whatsoever, there are, at the date of such
termination, any amounts paid by SDTC to the Eligible Recipient as part of the Contribution which have not been expended by the Eligible Recipient on such date on Eligible 

  

					
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Project Costs, the Eligible Recipient shall upon receipt of written notice from SDTC, repay all such amounts to SDTC in full. In the event the Eligible Recipient does not repay any and all
such amounts to SDTC within thirty {30) days of the date of a written demand from SDTC to the Eligible Recipient requiring such repayment, such failure to repay shall constitute an Event of Default under this Agreement and SDTC shall have, in
addition to all rights and recourses to recover monies owing at law or in equity, the rights set forth in Sections 13.2d) and {e) and Section 13.3 of this Agreement. 

 

	13.9	 Fees and Expenses 

Whether or not the transactions contemplated hereby are completed, the Eligible Recipient shall pay all reasonable out-of-pocket, due diligence and other related expenses of SDTC including, without limitation, the fees and expenses of legal counsel to SDTC relating to the negotiation and
settlement of this Agreement and the fees paid to consultants and advisors pursuant to Section 13.4 hereof. Such expenses, if incurred, shall be deducted from an installment of the Contribution paid by SDTC to the Eligible Recipient pursuant to the
terms hereof. The Eligible Recipient and Consortium Members shall bear their respective expenses incurred in connection with the negotiation, preparation, execution and performance of this Agreement and the transactions contemplated hereby,
including, without limitation, all fees and expenses of agents, representatives, counsel and accountants, and in no event shall SDTC be responsible for such costs. 
  

	14.0	 ASSIGNMENT 

  

	14.1	 This Agreement shall not be assigned in whole or in part by the Eligible Recipient without the prior written
consent of SDTC and any assignment made without that consent is void and of no force or effect. 

  

	15.0	 DISPUTE RESOLUTION 

 

	15.1	 Best Endeavours to Settle Disputes 

In the event of any dispute, claim, question or difference arising out of or relating to this Agreement or any breach hereof, the parties
hereto shall use reasonable efforts to settle such dispute, claim, question or difference. To this effect, they shall consult and negotiate with each other, in good faith and understanding of their mutual interests, to reach a just and equitable
solution satisfactory to all parties. 
  

	15.2	 Mediation 

If a dispute arising out of this Agreement cannot be settled amicably through negotiation, then the parties agree that either party may submit
the dispute to mediation {as administered by the Arbitration and Mediation Institute of Canada Inc.) upon written notice to the other party. The cost of mediation shall be borne equally by the parties. 

 

	15.3	 Arbitration 

  

	 	a)	 Except as is expressly provided in this Agreement, if the parties do not reach a solution pursuant to Sections
15.1 or 15.2 hereof within a period of thirty {30) Business Days, then upon written notice by any party to the other, the dispute, claim, question or difference shall be finally settled by arbitration in accordance with the provisions of the
Arbitrations Act (British Columbia) and any amendments thereto, based upon the following: 

  

					
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	 	i.	 the arbitration tribunal shall consist of one arbitrator appointed by mutual agreement of the parties, or in
the event of failure to agree within ten (10) Business Days, any party may apply to a court of competent jurisdiction to appoint an arbitrator. The arbitrator shall be qualified by education and training to pass upon the particular matter to be
decided; 

  

	 	ii.	 the arbitrator shall be instructed that time is of the essence in proceeding with his determination of any
dispute, claim, question or difference and, in any event, the arbitration award must be rendered within thirty (30) Business Days of the submission of such dispute to arbitration; 

 

	 	iii.	 the arbitration shall take place in Vancouver, British Columbia and shall, unless otherwise mutually agreed
among the parties, be conducted in English; 

  

	 	iv.	 the arbitration award shall be given in writing and shall be final and binding on the parties, not subject to
any appeal, and shall deal with the question of costs of arbitration and all matters related thereto; 

  

	 	v.	 each party shall bear the cost of preparing its own case. The arbitrator shall have the right to include in the
award the prevailing party’s costs of arbitration and reasonable fees of attorneys, accountants, engineers and other professionals incurred by it in connection with the arbitration; and 

 

	 	vi.	 judgment upon the award rendered may be entered in any Court having jurisdiction, or, application may be made
to such Court for a judicial recognition of the award or an order of enforcement thereof, as the case may be. In addition, if it appears to either party that the arbitrator lacks the power to give effective interim relief, such party may apply to a
court of competent jurisdiction for such relief. 

  

	16.0	 PUBLICITY AND ACKNOWLEDGEMENTS 

 

	16.1	 The Eligible Recipient will acknowledge the financial support of SDTC and the Funding Partner in all publicly
disseminated information relating to the Project unless otherwise directed by SDTC. 

  

	16.2	 The Eligible Recipient hereby consents and agrees to the participation by SDTC or a representative of the
Government of Canada and the Funding Partner at any public event relating to the Project organized by the Eligible Recipient, the Consortium or a Third Party and to have the event take place on a date mutually agreed upon by the Eligible Recipient
and SDTC. If directed by SDTC, the Eligible Recipient shall use the corporate name and logo of SDTC and the name and logo of the Funding Partner and the Government of Canada’s wordmark provided that such use is strictly in accordance with the
policies of SDTC and the Government of Canada and the Funding Partner, as applicable relating thereto and only as it relates to the Project and for no other use without the prior written consent of SDTC. 

 

	16.3	 No press releases, public announcements or other material prepared by the Eligible Recipient, the Consortium or
a Third Party for promotional and general information purposes relating to the Project, SDTC, the Funding Partner or the Contribution shall be issued or distributed to the public without the prior written approval of SDTC and the Eligible Recipient
shall use the framework for press releases provided by SDTC which recognizes the contribution to the Project of SDTC, the Government of Canada and the Funding Partner. At the request of SDTC, press releases, public announcements and other material
prepared by the Eligible Recipient, the Consortium or a Third Party relating to the Project shall be in both English and French. Any such press releases, public announcements or other material shall be submitted to SDTC for review and approval at
least ten Business Days prior to scheduled release to the public. 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 28 of 68

	16.4	 Each of SDTC and the Funding Partner may issue press releases and other materials it has prepared for
promotional and general information purposes which refer to the Eligible Recipient, the Consortium, the Project and the Contribution without the approval or consent of the Eligible Recipient. 

 

	17.0	 NOTICES 

  

	17.1	 Notices under this Agreement shall be issued to the following individuals. Notification may be via fax or
mail/courier to the following address: 

 To SDTC: 

Sustainable Development Technology Canada 

45 O’Connor Street 
 Suite
1850 
 Ottawa, ON Canada 
 K1P
1A4 
 Attention: Projects Coordinator 

Fax: 613 234-0303 

To Eligible Recipient: 
 D-Wave Systems Inc. 
 3033 Beta Avenue 

Burnaby, BC Canada 
 V5G 4M9 

Attention: General Counsel 
 Fax:
(604) 630-1434 
 Reports, notices, requests and documents are deemed to have been received, if sent
by registered mail, when the postal receipt is acknowledged by the other party; by facsimile or electronic mail, when transmitted and receipt is confirmed; and by messenger or specialized courier agency, when delivered. 

 

	18.0	 GENERAL CONTRACT PROVISIONS 

 

	18.1	 Time is of the Essence 

Time is of the essence of this Agreement. 
  

	18.2	 Excusable Delays 

The dates and times by which either party is required to perform any obligation under this Agreement shall be postponed automatically to the
extent, for the period of time, and to the degree that the party is prevented from so performing by circumstances beyond its reasonable control. Said circumstances shall include acts of nature, strikes, lockouts, riots, acts of war, epidemics,
government regulations imposed after the fact, fire, power failures, earthquakes or other disasters. A party seeking relief under this Section shall, as promptly as possible under the circumstances, provide the other party with written notice of the
circumstances, and its anticipated scope and time of postponement of its obligations. 
  

	18.3	 Amendments 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 29 of 68

 This Agreement may only be amended, modified or supplemented by a written agreement signed
by authorized representatives of both parties. 
  

	18.4	 Legal Relationship 

Nothing contained herein as between SDTC and the Eligible Recipient, or as between the Minister and the Eligible Recipient, shall create the
relationship of principal and agent, master and servant, settler and trustee, employer and employee, partner or joint venturer and neither party shall have any right to obligate or bind the other in any manner. The Eligible Recipient shall not, and
shall ensure that the Consortium Members do not, make any representation that the Eligible Recipient is an agent of either SDTC or the Minister nor make any representation that could reasonably lead any member of the public to believe that the
Eligible Recipient or any Consortium Member is an agent of either SDTC or the Minister. 
  

	18.5	 Severability 

If any provision of this Agreement is determined to be invalid or unenforceable by an arbitrator or a court of competent jurisdiction from
which no further appeal lies or is taken, that provision shall be deemed to be severed herefrom and the remaining provisions of this Agreement shall not be affected thereby and shall remain valid and enforceable; provided that in the event that any
portion of this Agreement shall have been so determined to be or become invalid or unenforceable, the parties shall negotiate in good faith such changes to this Agreement as will best preserve for the parties the benefits and obligations of such
offending portion. 
  

	18.6	 No Implied Waivers; Rights Cumulative. 

No failure on the part of the parties to exercise and no delay in exercising any right, power, remedy or privilege under this Agreement, or
provided by statute or at law or in equity or otherwise, including, but not limited to, the right or power to terminate this Agreement, shall impair, prejudice or constitute a waiver of any such right, power, remedy or privilege or be construed as a
waiver of any breach of this Agreement or as an acquiescence therein, nor shall any single or partial exercise of any such right, power, remedy or privilege preclude any other or further exercise thereof or the exercise of any other right, power,
remedy or privilege. 
  

	18.7	 Further Assurances 

Each of the parties covenants and agrees that it will sign such further agreements, assurances, waivers and documents, and do and perform or
cause to be done and performed such further and other acts and things as may be necessary or desirable from time to time in order to give full effect to this Agreement and every part hereof. 

 

	18.8	 Governing Law 

This Agreement shall be governed by, interpreted and construed in accordance with the laws of the Province of British Columbia and the federal
laws of Canada applicable therein. The courts of the Province of British Columbia shall have exclusive and original jurisdiction in any action or proceedings brought under this Agreement or for the purpose of enforcing this Agreement or any
provision of it and the parties irrevocably attorn to the jurisdiction of the courts of the Province of British Columbia. 
  

	18.9	 Entire Agreement 

This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all previous
negotiations, communications, and other agreements, whether written or verbal, between the parties. 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 30 of 68

	18.10	 Successors and Assigns 

This Agreement shall enure to the benefit of and be binding on the parties and their respective successors and permitted assigns. 

 

	18.11	 Language of Agreement 

This Agreement has been drafted in the English language at the express wish of the parties. Le present document a été
rédigé dans la langue anglaise à la volonté expresse des parties. 
  

	19.0	 LIMITS ON FUNDING 

 

	19.1	 The preparation of this Agreement by SDTC and the completion of any blanks herein shall not be construed as an
offer by SDTC to the Eligible Recipient. This Agreement shall not be binding on SDTC until it has been executed by SDTC and the Eligible Recipient and a fully executed copy is delivered to the head office of SDTC in Ottawa. Unless fully executed,
this document shall expire on July 31, 2018 and any potential funding described herein may be unilaterally withdrawn by SDTC. 

[Remainder of this page left Intentionally blank.] 

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 31 of 68

 IN WITNESS WHEREOF this Agreement has been executed by the parties hereto as of the
Effective Date. 
  

					
	CANADA FOUNDATION FOR SUSTAINABLE DEVELOPMENT TECHNOLOGY	 		 	D-Wave Systems Inc.
			
	 /s/ Kevin Lindsey
	 		 	 /s/ Vern Brownell

	 Kevin Lindsey
 Acting Vice President,
Performance
	 		 	Vern Brownell, CEO
			
	 /s/ Ziyad Rahme
	 		 	
	 Ziyad Rahme
 VP Investments, for Leah Lawrence,
President and CEO
	 		 	

  

					
	SDTC-2017-C-3278	  	SDTC CONFIDENTIAL	  	Page 32 of 68

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