Document:

lxrp_ex105.htm

EXHIBIT 10.5
  
 MANAGEMENT SERVICES AGREEMENT
  
 THIS AGREEMENT dated for reference the 1st day of June 2017. BETWEEN: 
  
 	 Lexaria Bioscience Corp , a company duly incorporated under the laws of the Province of British Columbia and having its office at 156 Valleyview Rd, Kelowna BC Canada V1X 3M4 

	  

	 (hereinafter referred to as the “Company”) 

 
  
 OF THE FIRST PART
  
 AND 
  
 	 M & E Services Ltd., a company duly incorporated under the laws of the Province of British Columbia and having its office at 8131 198A St Langley BC Canada V2Y 1Y6 

	  

	 (hereinafter referred to as "the Consultant" or “Consultant”) 

 
  
 WHEREAS: 
  
 	 A. 
	 The Company wishes to employ Consultant as its Acting Chief Financial Officer, Corporate Secretary, and Treasurer to provide management Services to it on the terms and conditions hereinafter set forth.

		  

	 B. 
	 Consultant has agreed to provide the Services to the Company on the terms and conditions set out in this Agreement. This Agreement dated June 1, 2017, supersedes all other previous consulting agreements between the Parties.

 
  
 NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the premises and of the covenants and agreements hereinafter contained the parties hereto have agreed as follows: 
  
 	 1. 
	 ENGAGEMENT OF SERVICES

		  

	 1.1. 
	 The Company hereby engages Consultant to provide management Services as an independent contractor to the Company under the direction of the Company’s Board of Directors; and

		  

	 1.2. 
	 Consultant hereby agrees to perform the following duties required of him in accordance with the terms of this agreement namely:

 
  
 	  
	 (a) 
	 All duties of a chief financial officer with review and signing authority, controller, corporate secretary and/or treasurer of a publicly traded consumer products / bioscience / biotechnology company including sourcing and/or negotiating financial proposals and corporate financings; managing accounts receivable and accounts payable; preparation and review of financial statements, notes and various monthly, quarterly and other regulatory reports; in coordination with the CEO, communications with shareholders and preparation and review of budgets, and preparation and implementation of internal accounting policies and procedures; and any other duties that should be reasonably expected by the Board of Directors or Chief Executive Officer (together or separately, the “Services”). 

 
  
 	 
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	 (b) 
	 Collaborate with the president and/or chief executive officer to maintain and develop the financial reporting aspect only of the Company’s corporate/investor outreach materials as needed including overall corporate messaging through direct creation and development of corporate presentations, powerpoints, websites, shareholder and community communications, business plans, fact sheets, etc;

			
	  
	 (c) 
	 Identify and evaluate opportunities for capital raising and/or strategic collaboration with suitable third-parties at appropriate points in time for the Company, including research, plan, propose, execute and close approved projects, acquisitions, mergers and partnerships, as well as locate and cultivate finance sources, all of which create value for the Company;

			
	  
	 (d) 
	 Act as principal financial officer of PoViva Tea, (a 51%-owned US subsidiary of Lexaria Corp) regarding PoViva’s operations and assist in the management and execution of its development including evaluating and implementing supply chain efficiencies and more;

			
	  
	 (e) 
	 Act as principal financial officer of Lexaria CanPharm Corp (a 100% owned Canadian subsidiary of Lexaria Corp) regarding Lexaria CanPharm’s operations and assist in the execution of its development currently focused on business pursuits within Canada;

			
	  
	 (f) 
	 If requested, act as principal financial officer of Ambarii Trade Corp (a 50% owned Canadian subsidiary of Lexaria Corp) regarding Ambarii’s operations and assist in the execution of its development currently focused on business pursuits within Canada and the USA;

			
	  
	 (g) 
	 General Services. Consultant shall serve the Company (and/or such subsidiary or subsidiaries of the company as the Company may from time to time require) in such consulting capacity or capacities as may from time to time be determined by resolution of the Board of Directors or senior management of the Company and shall perform such duties and exercise such powers as may from time be determined by resolution of the Board of Directors, as an independent contractor. Consultant will work as needed with lawyers, partners, shareholders and other stakeholders as required by the Company. Consultant shall fulfill all duties expected of a Chief Financial Officer of a biotechnology/bioscience company, including sourcing and/or negotiation of financial proposals and corporate financings; strategic corporate and financial planning; management of all the overall business operations; communications with shareholders; negotiation and management of agreements; and any other duties that should be reasonably expected by and at the pleasure of the Board of Directors (together with all other items within Section 1.2, the “Services”).

 
  
 	 2. 
	 TERM

		  

	 2.1. 
	 The initial term of this Agreement shall be for a period of one (1) year, commencing as of the 1st day of June 2017 and continuing month to month thereafter with all terms in effect unless and until terminated as hereinafter provided.

 
  
 	 
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 	 3. 
	 SERVICES

		  

	 3.1 
	 Consultant agrees to perform the Services contracted hereunder including the following:

 
  
 	  
	 (a) 
	 to carry out all functions associated with the Services to the best of his skill and ability for the benefit of the Company;

			
	  
	 (b) 
	 to carry out the Services in a timely manner;

			
	  
	 (c) 
	 to act, at all times during the term of this Agreement, in the best interests of the Company; and

			
	  
	 (d) 
	 to use his best endeavors to preserve the goodwill and reputation of the Company and the relationship between the Company and its shareholders.

 
  
 	 4. 
	 REMUNERATION

 
  
 	 4.1. 
	 The Company shall pay to Consultant for all Services rendered hereunder:

		  

	 4.2. 
	 the sum of eight thousand dollars (CDN$8,000) plus Harmonized Sales Tax (HST) per month payable the last day of each calendar month, together with any such increments or bonuses thereto as the CEO or the Board of Directors of the Company may from time to time determine. The Consultant has the HST number 837634781RT0001. (the “ Monthly Fee”);

		  

	 4.3. 
	 Consultant’s out of pocket expenses incurred on behalf of the Company shall be paid by the Company. Examples would include but not be limited to: stationary, printing and other normal day to day office operational expenses but not including home office rent. In respect of expenses, Consultant shall provide statements and vouchers to the Company on a monthly basis.

		  

	 4.4. 
	 Consultant will be entitled to receive a performance related bonus on the same terms and conditions as for persons participating in any bonus plan that may be established and approved by the Company’s board of Directors. Any bonus payable to Consultant will be at the sole discretion of the Company’s Board of Directors, acting reasonably.

		  

	 4.5. 
	 Consultant is also eligible to participate in the as-yet uncreated Lexaria profit sharing plan that will be extended as soon as possible to all employees and managerial Consultants, provided he is a contracted Consultant when this anticipated profit sharing plan goes effective.

		  

	 4.6. 
	 During the first twelve (12) months after signing; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of US$200,000 to any single customer in any consecutive 60-day period would result in a restricted common share award of 100,000 Company shares; and, after the first twelve (12) months after signing and expiring twenty-four (24) months after signing; for combined Lexaria Energy and ViPova products and including all sales efforts, achieving non-refundable revenues of US$200,000 to any single customer in any consecutive 60-day period would result in a restricted common share award of 50,000 Company shares; this clause limited to one payment per customer during the 24-month period, but payable on each customer that meets these sales/licensing thresholds; 

 
  
 	 
	-3-
	

	 

 
  
 	 4.7. 
	 During the first twelve (12) months after signing; for combined Lexaria Energy and ViPova products and including all combined sales efforts and/or technology licensing revenues, achieving non-refundable revenues of US$500,000 in any fiscal quarter would result in a restricted common share award of 200,000 Company shares; and, after the first twelve (12) months after signing and expiring twenty-four (24) months after signing; for combined Lexaria Energy and ViPova products and including all sales efforts, achieving non- refundable revenues of US$500,000 in any fiscal quarter would result in a restricted common share award of 100,000 Company shares; this clause limited to one payment per fiscal quarter;

		  

	 4.8. 
	 Upon effective date of this Agreement, a grant of 200,000 stock options priced US one- cent above the previous day’s closing price at that time this Agreement is effective; and six months after the effective date of this Agreement a grant of 200,000 stock options also priced US one-cent above the previous day’s closing price at that date that is six months after the effective date of this Agreement;

		  

	 4.9. 
	 Sections 4.6 and 4.7 and 4.8 above, collectively or individually, are defined as “Milestone Payments”.

		  

	 4.10. 
	 Consultant shall be entitled to ongoing training, continuing education and certification programs expected to amount to up to roughly $5,000 per year.

 
  
 If so requested by Consultant and through calculation with and Consultant’s approval at the time of any and each award, all restricted common share awards mentioned in this Agreement shall be subject to a reduction in the number of restricted common shares issued to Consultant per grant to be paid instead as cash proportional to the tax liability to be incurred by Consultant at the time of the award. The Company would withhold from payment to Consultant that fraction of restricted common shares in each of the paragraphs in Section 3, above, that would correspond with the federal and provincial income tax payments otherwise payable by Consultant specifically with respect to each award only, and Consultant agrees that such a hybrid payment of cash and restricted common shares would fulfill the obligations of the Company with respect to each affected award. The intent of this partial cash payment would be to provide cash compensation to Consultant in the proportionate amount of each restricted common share award and it is expressly agreed that it remains the sole responsibility of Consultant to remit all amounts due to Provincial and Federal tax authorities. This provision does not conflict with nor negate the validity of Section 4.6, 4.7, or 4.8. 
  
 	 5. 
	 TERMINATION

		  

	 5.1. 
	 This Agreement may be terminated by either party at any time by two (2) months notice in advance, in writing given by Consultant to the Company, or by the Company to Consultant.

 
  
 	 
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 	 5.2. 
	 The Company may terminate this Agreement at any time, without further obligation to Consultant if:

 
  
 	  
	 (a) 
	 Consultant breaches any of the terms and conditions of this Agreement; or

			
	  
	 (b) 
	 The Company provides a lump sum termination break fee payment to Consultant in the amount equal to 4 times the Monthly Fee plus HST.

 
  
 	 5.3. 
	 If this Agreement is terminated by either party or any successor company or person, within 90 days of a Change of Control, excluding termination under section 5.2(a) herein, Consultant shall receive the payment under section 5.2.(b), plus an additional payment in the amount equal to 2 times the Fee. A “Change of Control” means the of any of the following events:

 
  
 	  
	 (a) 
	 If any individual, partnership, company, society, or other legal entity (a ”Person”), alone or together with any other Persons with whom it is acting jointly or in concert, becomes the beneficial owner of, or acquires the power to exercise control or direction over, directly or indirectly, such securities (or securities convertible into, or exchangeable for, securities) entitled to more than fifty percent (50%) or more of the votes exercisable by holders of the then-outstanding securities generally entitled to vote for the election of directors (“Voting Stock”) of the company or if any Persons that previously were not acting jointly or in concert commence acting jointly or in concert and together beneficially own, or have the power to exercise control or direction over, securities entitled to more than fifty percent (50%) or more of the votes exercisable by holders of voting stock, nor have rights of conversion which, if exercised, would permit such Persons to own or control such a percentage of votes;

			
	  
	 (b) 
	 The Company is merged, amalgamated or consolidated into or with another Person and, as a result of such business combination, securities entitled to more than fifty percent (50%) of the votes, exercisable by holders of the Voting Stock of the Company or of such Person into which the Voting Stock of the Company is converted in or immediately after such transaction are held by a Person alone or together with any other persons with whom it is acting jointly or in concert and such Person, together with those with whom it is acting jointly or in concert, held securities representing less than fifty percent ;(50%) of the votes exercisable by the holders of the Voting Stock of the Company immediately prior to such transaction;

			
	  
	 (c) 
	 The capital of the Company is reorganized and, as a result of such reorganization, securities entitled to more than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Company upon or immediately after such reorganization are held by a Person alone or together with any other Persons with whom it is acting jointly or in concert and such Person, together with those with whom it is acting jointly or in concert, held securities representing less than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the Company immediately prior to such reorganization.

			
	  
	 (d) 
	 The Company sells or otherwise transfers all or substantially all of its assets to another Person and immediately following such sale or transfer securities entitled to more than fifty percent (50%) of the votes exercisable by the holders of the Voting Stock of the acquiring Person are held by a Person that alone or together with any other Person or Persons with whom it is acting jointly or in concert, and such person, together with those with whom it is acting jointly or in concert, held securities representing less than fifty percent (50%) of the votes exercisable by holders of the Voting Stock of the Company immediately prior to such transaction; or

 
  
 	 
	-5-
	

	 

 
  
 	  
	 (e) 
	 During any period of two consecutive years, individuals (“Incumbent Directors”) who at the beginning of any such period constitute the directors of the Company cease for any reason to constitute at least a majority thereof. For the purposes of this clause (5.3.(e)):

 
  
 	  
	 i. 
	 Each director who, during any such period, is elected or appointed as a director of the Company with the approval of at least a majority of the Incumbent Directors will be deemed to be an Incumbent Director;

			
	  
	 ii. 
	 An “Incumbent Director” does not include a director, elected or appointed pursuant to an agreement (in respect of such election or appointment) with another Person that deals with the Company at arm’s length, or as part of or related to an amalgamation, a merger or a consolidation of the Company into or with another person, a reorganization of the capital of the Company or the acquisition of the Company as a result of which securities entitled to less than fifty (50%) percent of the votes exercisable by holders of the then-outstanding securities entitled to Voting Stock of the Company is converted on or immediately after such transaction are held in the aggregate by Persons who were holders of Voting Stock of the Company immediately prior to such transaction; and

			
	  
	 iii. 
	 References to the Company shall include successors to the Company as a result of any amalgamation, merger, consolidation or reorganization of the Company into or with another body corporate or other legal Person.

 
  
 	 6. 
	 NOTICE

 
  
 	 6.1. 
	 Any notice to be given under this Agreement shall be in writing and shall be deemed to have been given if delivered to, or sent by prepaid registered post addressed to, the respective addresses of the parties appearing on the first page of this Agreement (or to such other address as one party provides to the other in a notice given according to this paragraph). Where a notice is given by registered post it shall be conclusively deemed to be given and received on the fifth day after its deposit in a Canada post office any place in Canada.

 
  
 	 7. 
	 TAXES

 
  
 	 7.1 
	 Consultant shall be responsible for the payment of its income, capital gains and all other taxes and other remittances including but not limited to any form of insurance as shall be required by any governmental entity (including but not limited to health insurance and federal and state or provincial income taxes), though not including Director’s and Officer’s insurance which is paid for and provided by the Company, with respect to compensation paid by the Company to Consultant, and nothing in this Agreement implies or creates a relationship of employment. Consultant agrees to indemnify the Company for any tax, insurance or other remittance Consultant fails to make and which the Company may be obligated to pay. 

 
  
 	 8. 
	 MISCELLANEOUS

		  

	 8.1 
	 This Agreement may not be assigned by either party without the prior written consent of the other.

 
  
 	 
	-6-
	

	 

 
  
 	 8.2 
	 The titles of headings to the respective paragraphs of this agreement shall be regarded as having been used for reference and convenience only.

		  

	 8.3 
	 This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, administrators, successors and permitted assigns.

		  

	 8.4 
	 This Agreement shall be governed by and interpreted in accordance with the laws of British Columbia, Canada.

		  

	 8.5 
	 Expenses. Consultant shall be reimbursed for all travelling and other expenses actually and properly incurred by it in connection with its duties hereunder, not including commuting to the office that is the normal place of business. For all such expenses Consultant shall furnish to the Company statements, receipts and vouchers for such out-of-pocket expenses on a monthly basis. Consultant is pre-authorized to incur up to $1,000 per month, cumulatively, in relevant expenses. Amounts over $1,000 per month must be pre-approved by management of the Company or will be disallowed. Both parties recognize that as the financial condition of the Company improves or deteriorates, this amount may be increased or decreased without making changes to this document, provided the Company makes Consultant aware of the changed amount.

		  

	 8.6 
	 Consultant shall not, either during the continuance of its contract hereunder or at any time thereafter, disclose the private affairs of the Company and/or its subsidiary or subsidiaries, or any secrets or intellectual property of the Company (together or separately and as described below, “Proprietary Information”) and/or its subsidiary or subsidiaries, to any person other than the Directors of the Company and/or its subsidiary or subsidiaries or for the Company's purposes and shall not (either during the continuance of its contract hereunder or at any time thereafter) use for its own purposes or for any purpose other than those of the Company any information it may acquire in relation to the business and affairs of the Company and/or its subsidiary or subsidiaries, unless required by law.

		  

	 8.7 
	 Proprietary Information as that term is used herein shall consist of the following:

 
  
 	  
	 a) 
	 all knowledge, data and information which Consultant may acquire from the documents and information disclosed to it by the Company, its employees, attorneys, consultants, independent contractors, clients or representatives whether orally, in written or electronic form or on electronic media including, by way of example and not by limitation, any products, customer lists, supplier lists, marketing techniques, technical processes, formulae, inventions or discoveries (whether patentable or not), innovations, suggestions, ideas, reports, data, patents, trade secrets and copyrights, made or developed by the Company and related data and information related to the conduct of the business of the Company.

	  
	  
	  

	  
	 b) 
	 Proprietary Information shall also include discussions with officers, directors, employees, independent contractors, attorneys, consultants, clients, finance sources, customers or representatives and the fact that such discussions are taking place.

	  
	  
	  

	  
	 c) 
	 Proprietary Information shall not be directly or indirectly disclosed to any other person without the prior written approval of the Company.

	  
	  
	  

	  
	 d) 
	 Proprietary Information may not be used during the period of this contract nor thereafter, for the betterment of any other commercial enterprise, company, project or person without the prior written approval of the Company.

	  
	  
	  

	  
	 e) 
	 Proprietary Information shall not include matters of general public knowledge, information legally received or obtained by Consultant from a third party or parties without a duty of confidentiality, and information independently known or developed by Consultant without the assistance of the Company.

 
  
 	 
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 	 8.8 
	 Consultant shall well and faithfully serve the Company or any subsidiary as aforesaid during the continuance of its contract hereunder and use its best efforts to promote the interests of the Company. At all times Consultant will maintain a high degree of professionalism and integrity as would be expected in keeping with his senior executive role as President. Consultant reserves the right to refuse any request from the Company which may, in his reasonable opinion, violate either Federal or State Laws in either the United States or Canada.

	  
	  

	 8.9 
	 This Agreement may be terminated forthwith by the Company or Consultant without notice if either party breaches the Agreement. A breach may include, but is not limited to, the following:

 
  
 	  
	 a) 
	 The Company or Consultant shall commit any material breach of any of the provisions herein contained; or

			
	  
	 b) 
	 The Company or Consultant shall be guilty of any misconduct or neglect in the discharge of its duties hereunder; or

			
	  
	 c) 
	 The Company or Consultant shall become bankrupt or make any arrangements or composition with its creditors; or

			
	  
	 d) 
	 Consultant shall become of unsound mind or be declared incompetent to handle his own personal affairs; or

			
	  
	 (e) 
	 The Company or Consultant shall be convicted of any criminal offence other than an offence which, in the reasonable opinion of the Board of Directors of the Company, does not affect his/their position as a Consultant or a director of the Company.

  
 This Agreement may also be terminated by either party upon sixty (60) days written notice to the other. Should the Company terminate this agreement for a reason not enumerated in items 8.9(a), 8.9(b), 8.9(c), 8.9(d), or 8.9(e), Consultant will be entitled to all Milestone Payments, as they relate to transactions which were in process but had not yet closed at the date of his termination, to which he would have otherwise been entitled for a period of 60 days after the date of his notice of termination. 
  
 	 8.10 
	 In the event this Agreement is terminated by reason of default on the part of Consultant or the written notice of the Company, then at the request of the Board of Directors of the Company, Consultant shall forthwith resign any position or office which he then holds with the Company or any subsidiary of the Company. The provisions of Sections on Proprietary Information and on Confidentiality shall survive the termination or expiration of this Agreement. 

		  

	 8.11 
	 Upon Termination or expiration of this Agreement, for any reason, Consultant shall do the following: Consultant must return to Lexaria immediately, all correspondence, information, reports, emails, phone recordings or transcripts, notes, Consultant contact information and all other materials related to the work performed for Lexaria including all Proprietary Information during the contract period. 

  	  
	 a) 
	 All such materials and information as referred to in Section 8.7, above, are the exclusive property of the Company. After returning, transmitting or otherwise sending such information to Lexaria, Consultant must destroy any and all remaining copy (ies) or records of same.

	  
	  
	  

	  
	 b) 
	 All such materials and information as referred to in Section 12 were obtained during the time of the paid contract with Lexaria, and may not be shown, lent, given, discussed or in any way disclosed with or to any other party as per the terms of the contract. The Proprietary Information Consultant gained or had access to during the period of the contract is the exclusive property of Lexaria Corp, and the provisions governing such proprietary information survives the termination of this Consulting Agreement.

 
  
 	 
	-8-
	

	 

 
  
 	 8.12
	 The Company is aware that Consultant is independent and may have and may continue to have financial, management or business interests in other companies. The Company agrees that Consultant may continue to devote time to such outside interests, provided that such interests do not conflict with or hinder Consultant’s ability to perform his duties under this Agreement. 

	  
	  

	 8.13 
	 The services to be performed by Consultant pursuant hereto are personal in character, to be performed by Mr. Allan Spissinger, and neither this Agreement nor any rights or benefits arising thereunder are assignable by Consultant without the previous written consent of the Company. 

	  
	  

	 8.14 
	 With the exception of any previously granted options or restricted stock, any and all previous agreements, written or oral, between the parties hereto or on their behalf relating to the agreement between Consultant and the Company are hereby terminated and cancelled and each of the parties hereto hereby releases and forever discharges the other party hereto of and from all manner of actions, causes of action, claims and demands whatsoever under or in respect of any such previous agreements. 

	  
	  

	 8.15 
	 Any notice in writing or permitted to be given to Consultant hereunder shall be sufficiently given if delivered to Consultant personally or mailed by registered mail, postage prepaid, addressed to Consultant at the address on the front of this Agreement. Provided any such notice is mailed via guaranteed overnight delivery, as aforesaid shall be deemed to have been received by Consultant on the first business day following the date of mailing. Any notice in writing required or permitted to be given to the Company hereunder shall be given by registered mail, postage prepaid, addressed to the Company at the address shown on page 1 hereof. Any such notice mailed as aforesaid shall be deemed to have been received by the Company on the first business day following the date of mailing provided such mailing is sent via guaranteed overnight delivery. Any such address for the giving of notices hereunder may be changed by notice in writing given hereunder. 

	  
	  

	 8.16 
	 The provisions of this Agreement shall inure to the benefit of and be binding upon Consultant and the successors and assigns of the Company. For this purpose, the terms "successors" and "assigns" shall include any person, firm or corporation or other entity which at any time, whether by merger, purchase or otherwise, shall acquire all or substantially all of the assets or business of the Company. 

	  
	  

	 8.17 
	 Every provision of this Agreement is intended to be severable. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the validity of the remainder of the provisions of this Agreement. 

	  
	  

	 8.18 
	 This Agreement is being delivered and is intended to be managed from the Province of British Columbia and shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the laws of such Province. Similarly no provision within this contract is deemed valid should it conflict with the current or future laws of the United States of America or current or future regulations set forth by the United States Securities and Exchange Commission, the British Columbia Securities Commission, or the Ontario Securities Commission. This Agreement may not be changed orally, but only by an instrument in writing signed by the party against whom or which enforcement of any waiver, change, modification or discharge is sought. 

	  
	  

	 8.19 
	 This Agreement and the obligations of the Company herein are subject to all applicable laws and regulations in force at the local, State, Province, and Federal levels in both Canada and the United States. In the event that there is an employment dispute between the Company and Consultant, Consultant agrees to allow it to be settled according to applicable Canadian law in an applicable British Columbia jurisdiction. 

 
  
 	 
	-9-
	

	 

 
  
 	 8.20 
	 The securities referred to herein will not be or have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Any and all potential or actual common share award or stock option awards will be in compliance with all applicable regulations in the USA and Canada. The securities issued will be subject to a hold period in Canada of not less than four months and one day, or for any resales possible into the USA under Rule 144, not less than six months and one day. Hold periods may be longer if regulations so stipulate. 

	  
	  

	 8.21 
	 This contract will expire on June 1, 2018 unless renewed or extended by mutual written consent of both parties prior to that date and can further serve as a month-to-month agreement after that date if both parties so agree at that time. 

	  
	  

	 8.21 
	 Consultant understands and agrees that his name and likeness will be announced and widely circulated with regards to his executive role with the Company. His name will be disseminated through such avenues as press releases, websites, or other media; and in personal meetings and appearances and public events. Consultant understands that as a publicly traded entity, the Company has certain transparency obligations to its shareholders, stock exchanges, and other regulatory bodies, and has legal obligations to disclose Consultant’s initial and ongoing relationship with the Company during the normal course of business. 

 
  
 	 
	-10-
	

	 

 
  
 IN WITNESS WHEREOF the parties have executed this Agreement the day and year first above written. 
  
 Lexaria Bioscience Corp: 
  
 	 Authorized Signatory 

 
  
  
 	 SIGNED by: 
			
				
		  
	 DATED: 
	
				  

	 Allan Spissinger 
			  

	 M & E Services Ltd. 
			

 
  
 	 
	-11-lxrp_ex1011.htm

EXHIBIT 10.11
  
 UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MAY 1, 2019. 
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.
  
 THE SECURITIES REPRESENTED HEREBY WILL BE VOID AFTER THE EXPIRY TIME AS DESCRIBED HEREIN. DO NOT DESTROY THIS CERTIFICATE.
  
 WARRANT CERTIFICATE
  
 WARRANTS TO PURCHASE COMMON SHARES OF
  
 LEXARIA BIOSCIENCE CORP.
  
 	 WARRANT CERTIFICATE
NO. 2018-10-XX
	 Certificate for XX warrants, each entitling the Holder, subject to adjustment, to acquire one Common Share in the capital of Lexaria Bioscience Corp.

 
 
 
 
  
 THIS IS TO CERTIFY THAT for value received the holder, XX (the “Holder”), is entitled to acquire in the manner herein provided one fully paid and non-assessable Common Share of Lexaria Bioscience Corp. (the “Corporation”) for each of the warrants (the “Warrants”) represented by this certificate or by a replacement certificate (in either case, this “Warrant Certificate”). Unless otherwise stated, all references to sums of money in this Warrant Certificate are expressed in Canadian dollars.
  
 The Warrants are exercisable at any time prior to 5:00 p.m. (Eastern Standard Time) on October 31, 2020 (the “Expiry Time”).
  
 The subscription price for each Common Share to be acquired upon exercise of each Warrant shall be US$2.25 (the “Exercise Price”), subject to the provisions and upon the terms and conditions referred to in this Warrant Certificate.
  
 	 1. 
	Interpretation
	  
	  

	 1.1 
	Where used in this Warrant Certificate, the following words and phrases have the following meanings:
	  
	  

	 (a) 
	“Common Shares” means common shares in the capital of the Corporation.

 
 
 
 
   
 	 
	
	

	 

 
 
 
 
 - 2 -
   
 	 (b) 
	“Common Share Reorganization” means (i) a subdivision, redivision or change in the number of Common Shares at any time outstanding into a greater number of Common Shares, (ii) a reduction, combination or consolidation in the Common Shares at any time outstanding into a lesser number of Common Shares or (iii) any issuance of Common Shares or securities exchangeable for or convertible into Common Shares to all or substantially all of the holders of the Common Shares as a stock dividend or other distribution (other than as a distribution of Common Shares upon exercise of the Warrants, warrants or options previously issued by the Corporation or pursuant to the exercise of directors, officers or employee stock options granted under the Corporation’s stock option plans).
	  
	  

	 (c) 
	“Corporation Reorganization” means any reclassification of the Common Shares at any time outstanding or change of the Common Shares into other shares or other securities (other than a Common Share Reorganization), including, without limitation, in connection with: 

 
 
 
 
   
 	  
	 (i) 
	a consolidation, amalgamation, arrangement or merger of the Corporation with or into any other company; or 
	  
	  
	  

	  
	 (ii) 
	any transfer of the undertaking or assets of the Corporation as an entirety or substantially as an entirety to another person or any exchange of Common Shares into securities of another company.

 
 
 
 
   
 	 (d) 
	“CSE” means the Canadian Securities Exchange.
	  
	  

	 (e) 
	“Current Market Price” in respect of a Common Share, at any date means the volume weighted average price per Common Share, for the 20 consecutive trading days ending on the trading day preceding such date, on the CSE, or if the Common Shares are not then listed thereon, on such stock exchange on which the Common Shares are then listed as may be selected for such purpose by the board of directors of the Corporation or, if the Common Shares are not then listed on any stock exchange, then on the over-the-counter market. The weighted average price shall be determined by dividing the total value of all such Common Shares sold on the said exchange or market, as the case may be, during the said 20 consecutive trading days by the total volume of Common Shares so sold; provided, that if there is no market for the Common Shares during all or part of such period during which the Current Market Price thereof would otherwise be determined, the Current Market Price in respect of a Common Share shall in respect of all or such part of the period, as the case may be, determined by the board directors of the Corporation acting reasonably and in good faith in their sole discretion.
	  
	  

	 (f) 
	“Securities Laws” means the securities legislation in each of the provinces of Canada and the rules and regulations made thereunder, the orders and policy statements of the securities commissions or other securities regulatory authorities in such jurisdictions, and the rules, regulations and policies of the CSE; or securities legislation in each of the states of the United States and the rules and regulations made thereunder, the orders and policy statements of the securities commissions or other securities regulatory authorities in such jurisdictions, and the rules, regulations and policies of the OTC, as the case may be.
	  
	  

	 1.2. 
	In the event that (a) the Expiry Time occurs on a day that is a Saturday, Sunday or civic or statutory holiday in Kelowna, British Columbia or (b) any day on or before which any action is required to be taken hereunder is a Saturday, Sunday or civic or statutory holiday in Vancouver, British Columbia, then the Expiry Time shall occur on or the action shall be required to be taken on or before the next succeeding day that is not a Saturday, Sunday or civic or statutory holiday in Kelowna, British Columbia.
	  
	  

	 2. 
	Exercise of Warrants
	  
	  

	 2.1 
	The Warrants represented by this Warrant Certificate may be exercised by the Holder at any time prior to the Expiry Time, in whole or in part, by delivering to the office of the Corporation, at 100-740 McCurdy Rd, Kelowna, BC V1X 2P7, during its normal business hours:
	  
	  

	 (a) 
	a duly completed and executed Notice of Exercise in the form attached to this Warrant Certificate; 
	  
	  

	 (b) 
	a wire transfer, certified cheque or bank draft payable in US funds to or to the order of the Corporation in payment of the Exercise Price for the number of Warrants being exercised; and
	  
	  

	 (c) 
	this ORIGINAL Warrant Certificate.

 
 
 
 
   
 	 
	
	

	 

 
 
 
 
 - 3 - 
   
 	 2.2 
	Subject to the terms of this Warrant Certificate, upon exercise of Warrants, the person or persons in whose name or names the Common Shares issuable upon exercise of the Warrants are to be issued shall be deemed immediately for all purposes to be the holder or holders of record of such Common Shares and the Corporation will cause a certificate or certificates representing the Common Shares and, if applicable, any unexercised Warrants, to be delivered or mailed to the person or persons at the address or addresses specified in the applicable Notice of Exercise within seven days of receipt of the documents referred to in Section 2.1 above. 
	  
	  

	 2.3 
	No fractional shares shall be issued and if the exercise of the Warrants represented hereby would result in the Holder being entitled to receive a fraction of a share, the Corporation shall instead issue upon the exercise the next lower whole number of Common Shares; provided, that such entitlement of the Holder to a fractional share may subsequently be exercised in combination with other rights which, in the aggregate, entitle the Holder to purchase a whole number of Common Shares. The Holder may from time to time subscribe for and purchase any lesser number of Common Shares than the number of Common Shares expressed in this Warrant Certificate. In the event that the Holder subscribes for and purchases any such lesser number of Common Shares prior to the Expiry Time, the Holder shall be entitled to the return of the certificate with a notation on the grid attached hereto showing the balance of the Common Shares which the Holder is entitled to purchase pursuant to the Warrant Certificate which were not then purchased. 
	  
	  

	 2.4 
	The Corporation covenants and agrees that:
	  
	  

 
 
 
 
 	  
	 (a) 
	all Common Shares issued upon the exercise of the rights represented by this Warrant Certificate will, upon payment of the Exercise Price therefor, be duly authorized and validly issued as fully paid and non-assessable Common Shares, free and clear of all liens, charges and encumbrances;
	  
	  
	  

	  
	 (b) 
	from and after the date of this Warrant Certificate and otherwise during the period within which the rights represented by this Warrant Certificate may be exercised, the Corporation will at all times (to the extent necessary under applicable corporate law) have authorized and reserved for issuance a sufficient number of Common Shares to provide for the exercise of the Warrants represented by this Warrant Certificate; and
	  
	  
	  

	  
	 (c) 
	until the earlier of the Expiry Time or such time as the Warrants cease to be outstanding, it will use its commercially reasonable efforts to maintain (i) the listing of the Common Shares on the CSE and (ii) its status as a “reporting issuer” (or the equivalent thereof) not in default under the Securities Laws and file with and pay to the securities regulatory authorities in each of the jurisdictions of Canada wherein it is a "reporting issuer" or as may otherwise be required in a timely manner all reports and other documents required to be filed and all fees required to be paid by the Corporation under the Securities Laws.
	  
	  
	  

 
 
 
 
 	 2.5 
	If the Warrants represented by this Warrant Certificate have not been exercised prior to the Expiry Time, all rights under the Warrants represented hereby shall wholly cease and terminate and the Warrants shall be void and of no effect. 
	  
	  

	 2.6 
	If the Warrants are exercised any time prior to MAY 1, 2019, the certificate or certificates representing the Common Shares to be issued upon such exercise will bear the following legends:
	  
	  

	  
	 UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MAY 1, 2019. 
  
 The certificate or certificates representing the Common Shares to be issued upon exercise of the Warrants will bear the following legends:
  
 THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.

	  
	  

	  
	 Neither the Warrants or the Common Shares issuable upon exercise of the Warrants have been or will be registered under the United States Securities Act of 1933, as amended (the “1933 Act”), or under the laws of any state of the United States.
  
 The Holder is advised to seek professional advice as to applicable resale restrictions.

 
 
 
 
     
 	 
	
	

	 

 
 
 
 
 - 4 -
    
 	 3. 
	Issue in Substitution for Lost Warrants
	  
	  

	 3.1 
	In case this Warrant Certificate shall become mutilated or be lost, destroyed or stolen, the Corporation, subject to applicable law and to Section 3.2 and upon a sworn statement of the Warrant holder, shall issue and deliver a new Warrant Certificate of like date and tenor as the one mutilated, lost, destroyed or stolen upon surrender of and in place of and upon cancellation of the mutilated Warrant Certificate or in lieu of and in substitution for the lost, destroyed or stolen Warrant Certificate.
	  
	  

	 3.2 
	The applicant for the issue of a new Warrant Certificate pursuant to this Section 3 shall bear the cost of the issue thereof and in case of loss, destruction or theft shall, as a condition precedent to the issue thereof, furnish to the Corporation such evidence of ownership and of the loss, destruction or theft of the Warrant Certificate so lost, destroyed or stolen as shall be satisfactory to the Corporation in its discretion acting reasonably and the applicant may also be required to furnish an indemnity in form satisfactory to the Corporation in its discretion acting reasonably, and shall pay the reasonable charges of the Corporation in connection therewith.
	  
	  

	 4. 
	Adjustment of Subscription Rights
	  
	  

	 4.1 
	If and whenever at any time after the date hereof and prior to the Expiry Time there shall be a Corporation Reorganization, the Holder shall thereafter upon the exercise of the Warrants be entitled to receive, and shall accept, in lieu of the number of Common Shares to which the Holder was entitled to upon such exercise, the kind and amount of shares, other securities or property which the Holder would have been entitled to receive as a result of such Corporation Reorganization if the Holder had been the registered holder of the number of Common Shares on the record date or effective date thereof, as the case may be, to which the Holder was entitled to upon exercise of the Warrants. If necessary, appropriate adjustments shall be made in the application of the provisions set out herein with respect to the rights and interests of the Holder after the consummation of the Corporation Reorganization to the end that the provisions set out herein shall thereafter correspondingly be made applicable as nearly as may reasonably be possible in relation to any shares or other securities or property thereafter deliverable upon the exercise of the Warrants represented hereby. 
	  
	  

	 4.2 
	If and whenever at any time after the date hereof and prior to the Expiry Time:
	  
	  

 
 
 
 
 	  
	 (a) 
	a Common Share Reorganization takes place and the Holder holds Warrants that have not been exercised on or prior to the effective date or record date of such Common Share Reorganization, as the case may be, upon the exercise of such right thereafter then the Holder shall be entitled to receive and shall accept in lieu of the number of Common Shares which would otherwise then have been subscribed for by the Holder, at the Exercise Price as adjusted in accordance with Section 4.2(b), the aggregate number of Common Shares or other securities convertible into or exchangeable for Common Shares, or both, that the Holder would have been entitled to receive as a result of such Common Share Reorganization, on such record date or effective date, as the case may be, had the Holder been the registered holder of the number of Common Shares so subscribed for; and
	  
	  
	  

	  
	 (b) 
	 the Exercise Price in effect on the effective date (subject to the last sentence of this Section 4.2(b)) of such Common Share Reorganization shall be adjusted by multiplying the Exercise Price then in effect by a fraction, the numerator of which shall be the number of Common Shares outstanding immediately prior to such event and the denominator of which shall be the number of Common Shares outstanding immediately following such event. For the purposes of the adjustment contemplated hereby, the expression “number of Common Shares outstanding” at any time shall include all Common Shares issuable upon exercise of all outstanding rights to acquire Common Shares, the exercise of which is not subject to any condition or limitation which has not been satisfied at that time. Any such issue of Common Shares by way of a stock dividend will be deemed to have been made on the record date for the stock dividend for the purpose of calculating the number of outstanding Common Shares under this Section 4.2(b).

 
 
 
 
    
 	 
	
	

	 

 
 
 
 
 - 5 -
    
 	 4.3 
	If and whenever at any time after the date hereof and prior to the Expiry Time the Corporation shall fix a record date for the issuance or distribution to all or substantially all of the holders of Common Shares of: (i) securities of the Corporation, including without limitation shares, rights, options or warrants to acquire shares of any class or securities exchangeable for or convertible into or exchangeable into any such shares; (ii) evidences of indebtedness (including indebtedness of the Corporation); or (iii) property or other assets of the Corporation, and if such issuance or distribution does not constitute a Common Share Reorganization or a Rights Offering (any of such non-excluded events being herein called a “Special Distribution”), then the Exercise Price shall be adjusted effective immediately after the record date for the Special Distribution by multiplying the Exercise Price in effect on such record date by a fraction:

 
 
 
 
   
 	  
	 (a) 
	the numerator of which shall be:

 
 
 
 
   
 	  
	 (i) 
	the product of the number of Common Shares outstanding on such record date and the Current Market Price of a Common Share on such record date, less
	  
	  
	  

	  
	 (ii) 
	the aggregate fair market value, as determined by the board of directors of the Corporation, of the securities, evidences of indebtedness or property or other assets issued or distributed in the Special Distribution, and

 
 
 
 
   
 	  
	 (b) 
	the denominator of which shall be the product of the number of Common Shares outstanding on such record date and the Current Market Price of a Common Share on such record date.

 
 
 
 
   
 	 4.4 
	Notwithstanding anything to the contrary set forth in this Warrant Certificate, if, in the opinion of the board of directors of the Corporation, acting reasonably, at any time prior to the Expiry Time the Corporation takes any other action affecting its capital: 

 
 
 
 
   
 	  
	 (a) 
	to which the foregoing provisions of Sections 4.1, 4.2 or 4.3 are not strictly applicable or, if strictly applicable, would not fairly adjust the rights of the Holder against dilution in accordance with the intent and purposes thereof; or 
	  
	  
	  

	  
	 (b) 
	which would otherwise materially affect the rights of the Holder hereunder, 
	  
	  
	  

	  
	 then the board of directors of the Corporation has the rightl, subject to any requisite regulatory approval, to adjust such rights as aforesaid in such a manner as the board of directors of the Corporation, acting reasonably, determines is equitable in the circumstances.

 
 
 
 
    
 	 4.5 
	The adjustments provided for herein: 

 
 
 
 
   
 	  
	 (a) 
	are cumulative and shall apply to successive events resulting in any adjustment under Sections 4.1, 4.2, 4.3 or 4.4;
	  
	  
	  

	  
	 (b) 
	are intended to preserve the economic value of the Warrants, not to enhance or diminish their value;
	  
	  
	  

	  
	 (c) 
	shall, in the case of adjustments to the Exercise Price, be computed to the nearest one-tenth of one cent but shall not be required unless such adjustment would result in a change of at least 1% in the prevailing Exercise Price; provided, however, that any adjustments which, except for the provisions of this Section 4.5(c) would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment; and 

 
 
 
 
   
 	 
	
	

	 

 
 
 
 
 - 6 - 
   
 	  
	 (d) 
	shall, in respect of the Common Shares to be issued to the Holder on the exercise of the Warrants, not be required unless it would result in a change of at least one one-hundredth of a Common Share; provided, however, that any adjustments which, except for the provisions of this Section 4.5(d) would otherwise have been required to be made, shall be carried forward and taken into account in any subsequent adjustment.

 
 
 
 
   
 	 4.6 
	In any case of an event for which an adjustment shall be effective immediately after a record date for an event referred to herein, the Corporation may defer, until the completion of such an event, issuing to the Holder of any Warrant exercised after such record date and before the completion of such event the additional Common Shares issuable upon such exercise by reason of the adjustment required by such event, provided, however, that the Corporation shall deliver or cause to be delivered to the Holder an appropriate instrument evidencing such Holder’s right, upon the completion of the event requiring the adjustment, to receive the additional Common Shares and the right to receive any dividends or other distributions which, but for the provisions of this Section 4.7, such person or persons would have been entitled to receive in respect of such additional Common Shares from and after the date that the Warrant was exercised in respect thereof.
	  
	  

	 4.7 
	At least 10 days prior to the effective date or record date, as the case may be, of any event which requires or may require adjustment in any of the subscription rights pursuant to this Warrant Certificate, including the Exercise Price or the number of Common Shares which are purchasable upon the exercise thereof, or such longer period of notice as the Corporation is otherwise by law required to provide holders of Common Shares in respect of any such event, the Corporation shall notify the Holder of the particulars of such event and, if determinable, the required adjustment and the computation of such adjustment. In the event that the adjustment for which such notice has been given is not then determinable, the Corporation shall promptly after such adjustment is determinable notify the Holder of the adjustment and the computation of such adjustment. On the happening of each and every such event, the applicable provisions of this Warrant Certificate, including the Exercise Price, shall, ipso facto, be deemed to be amended accordingly and the Corporation shall take all necessary action so as to comply with such provisions as so amended.
	  
	  

	 4.8 
	If the Corporation shall set a record date to determine the holders of the shares for the purpose of entitling them to receive any dividend or distribution or any subscription or purchase rights and shall, thereafter and before the distribution to such shareholders of any such dividend, distribution or subscription or purchase rights, legally abandon its plan to pay or deliver such dividend, distribution or subscription or purchase rights, then no adjustment in the Exercise Price or the number of Common Shares purchasable upon exercise of any Warrant shall be required by reason of the setting of such record date.
	  
	  

	 4.9 
	In the absence of a resolution of the board of directors of the Corporation fixing a record date for any dividend or distribution or Special Distribution, the Corporation shall be deemed to have fixed as the record date therefor the date on which such dividend or distribution is effected.
	  
	  

	 4.10 
	Any Common Shares owned by or held for the account of the Corporation or any subsidiary of the Corporation shall be deemed not to be outstanding for the purpose of any computation under Sections 4.1, 4.2 or 4.3.
	  
	  

	 4.11 
	Any question arising with respect to the adjustments provided herein shall be conclusively determined by the auditors of the Corporation (or if they are unable or unwilling to act, by such other firm of independent chartered accountants as may be selected by the board of directors of the Corporation), who shall have access to all necessary records of the Corporation or, if requested in writing by the Holder, by a single arbitrator pursuant to the Commercial Arbitration Act (British Columbia), and the determination by the auditors or of such accountants or arbitrator, as applicable, shall be binding upon the Corporation and the Holder. Notwithstanding the foregoing, if the Common Shares are listed on the CSE, such determination shall be subject to the prior written approval of the CSE. 

 
 
 
 
   
 	 
	
	

	 

 
 
 
 
 - 7 - 
   
 	 5. 
	Transfer of Warrants
	  
	  

	 5.1 
	The Warrants evidenced by this Warrant Certificate may only be transferred in accordance with applicable securities laws and the rules of any stock exchange upon which the Common Shares are listed.
	  
	  

	 5.2 
	Subject to the terms hereof, the Warrants represented hereby may be transferred by the Holder at any time and from time to time until the Expiry Time, in whole or in part, by delivery of this Warrant Certificate and a Notice of Transfer in the form attached hereto completed and signed by the Holder and the transferee to the office of the Corporation, 100-740 McCurdy Rd, Kelowna, BC V1X 2P7, during its normal business hours, and, subject thereto, may be transferred on the register kept at the offices of the Corporation. No transfer of these Warrants shall be made if in the opinion of the counsel to the Corporation, such transfer would result in the violation of any applicable securities laws.
	  
	  

	 6. 
	Miscellaneous
	  
	  

	 6.1 
	The holding of the Warrants evidenced by this Warrant Certificate shall not constitute the Holder thereof a holder of Common Shares of the Corporation or entitle the Holder to any rights as a holder of Common Shares, including without limitation, voting rights.
	  
	  

	 6.2 
	The Holder may, upon surrender of this Warrant Certificate at the office of the Corporation located at 100-740 McCurdy Rd, Kelowna, BC V1X 2P7, exchange this Warrant Certificate for other Warrant Certificates evidencing Warrants entitling the holder to receive in the aggregate the same number of Common Shares as may be acquired pursuant to the Warrants evidenced by this Warrant Certificate.
	  
	  

	 6.3 
	Any notice or other communication (a “Communication”) to be made or given in connection with this Warrant Certificate shall be made or given in writing and may be made or given by personal delivery, by registered mail addressed to the recipient at its address provided on the first page of this Warrant Certificate or such other address or individual as may be designated by it by notice given in accordance with this Section 6.3. Any Communication made or given by personal delivery shall be conclusively deemed to have been given on the day of actual delivery thereof and, if made or given by registered mail, on the fourth day, other than a Saturday, Sunday or civic or statutory holiday in Vancouver, British Columbia, following the deposit thereof in the mail. If the party giving any Communication knows or ought reasonably to know of any difficulties with the postal system which might affect the delivery of the mail, any such Communication shall not be mailed but shall be made or given by personal delivery. 
	  
	  

	 6.4 
	Time is of the essence hereof.
	  
	  

	 6.5 
	This Warrant Certificate shall be exclusively governed by and interpreted in accordance with the laws from time to time in force in British Columbia and the laws of Canada applicable thereto.
	  
	  

	 6.6 
	If a court or other tribunal of competent jurisdiction determines that any one or more of the provisions contained in this Warrant Certificate is invalid, illegal or unenforceable in any respect in any jurisdiction, the validity, legality and enforceability of such provision or provisions shall not in any way be affected or impaired thereby in any other jurisdiction and the validity, legality and enforceability of the remaining provisions contained in this Warrant Certificate shall not in any way be affected or impaired thereby, unless in either case as a result of such determination this Warrant Certificate would fail in its essential purpose.
	  
	  

	 6.7 
	This Warrant Certificate enures to the benefit of the Holder and its successors and permitted assigns and is binding upon the Corporation and its successors.

 
 
 
 
   
 	 
	
	

	 

 
 
 
 
 - 8 - 
   
 
 
 LEXARIA BIOSCIENCE CORP., intending to be contractually bound, has caused this Warrant Certificate to be signed by its duly authorized officer as of October 31, 2018.
  
 LEXARIA BIOSCIENCE CORP.
 By:
  
 __________________________________________
 (Authorized Signatory) 
  
 	 
	
	

	 

 
 
 
 
  
 NOTICE OF EXERCISE
 TO:      LEXARIA BIOSCIENCE CORP. (the “Corporation”)
  
 Capitalized terms not defined herein have the meaning set out in Warrant Certificate No. 2018-10-XX of the Corporation dated October 31, 2018 (the “Warrant Certificate”).
  
 The undersigned holder of the Warrants represented by the enclosed Warrant Certificate hereby exercises the right provided for in the Warrants to purchase ___________ Common Shares in the capital of the Corporation issuable on the exercise of the Warrants and encloses the amount of US$2.25 per Common Share (or the adjusted Exercise Price at which the undersigned is entitled to purchase such shares as provided in this Warrant Certificate) by way of certified cheque or recognized bank draft made payable to or to the order of the Corporation.
  
 Subject to certain limited exceptions, (i) the Warrants may not be exercised within the “United States”, or by or for the account or benefit of a person in the “United States” or a “U.S. Person” (as such terms are defined in Rule 902 of Regulation S promulgated under the United States Securities Act of 1933, as amended), and (ii) no Common Shares issuable upon exercise of the Warrants will be delivered to any address in the United States.
  
 The undersigned hereby irrevocably directs that such Common Shares be issued and delivered as follows:
  
 	 
Name(s) in Full
	 
Address(es)*
	 Number(s) of
 Common Shares

	 _________________________________
	 ________________________________
	  
 _______________________________

	 _________________________________
	  
 ________________________________
	  
 ________________________________

	  
 _________________________________
	 _________________________________
	 ________________________________

 
 
 
 
 
  
 Please print in full the name in which certificates are to be issued.
  
 DATED this ____ day of _______, 20__.
  
 	 ______________________________ 
	__________________________
	 Witness 
	 Signature of Holder

	  
	  

	  
	 __________________________

	  
	 Name of Holder

	  
	 __________________________

	  
	  

	  
	 __________________________

	  
	 Address of Holder

 
 
 
 
  
 ☐      Please check box if these certificates are to be delivered to the office where this Warrant Certificate is surrendered, failing which the certificate
 
 
  
 	 
	
	

	 

 
 
 
 
  
 TRANSFER OF WARRANTS
  
 Capitalized terms not defined herein have the meaning set out in Warrant Certificate No. 2018-10-XX of LEXARIA BIOSCIENCE CORP. (the “Corporation”) dated October 31, 2018 (the “Warrant Certificate”).
  
 FOR VALUE RECEIVED, the undersigned transferor (the “Transferor”) hereby sells, assigns and transfers unto
  
 ______________________________________________________________ (the “Transferee”)
 (NAME)
  
 ______________________________________________________________________________
 (ADDRESS)
  
 ____________Warrants registered in the name of the undersigned represented by the enclosed Warrant Certificate 
  
 and hereby irrevocably constitutes and appoints
  
 ______________________________________________________________________________
 (THIS SPACE SHOULD BE LEFT BLANK)
  
 ______________________________________________________________________________
THE ATTORNEY OF THE UNDERSIGNED TO TRANSFER THE SAID WARRANTS ON THE APPROPRIATE REGISTER OF THE COMPANY WITH FULL POWER OF SUBSTITUTION IN THE PREMISES
  
 DATED: ____________________________________________________________
  
 	 ___________________________________
Witness
 
 
 ___________________________________
Witness
	 ___________________________________
(Signature of Transferor)
  
 ___________________________________
(Name of Transferor – Please Print)
  
 ___________________________________
(Signature of Transferee)
  
 ___________________________________
(Name of Transferee – Please Print)

 
 
 
 
 
 
The Transferee, by executing this instrument, agrees to be bound by the terms of the enclosed Warrant Certificate.
  
 DATED the _____ day of _____________________, 20___.
 
 
  
 	 
	
	

	 

 
 
 
 
  
 Instructions:
   
 	 1. 
	The signature of the Warrantholder must be the signature of the person appearing on the face of the Warrant Certificate and must be guaranteed by a Schedule “1” major chartered bank, a trust company or a member of an acceptable medallion guarantee program. The Guarantor must affix a stamp bearing the actual words “Signature Medallion Guaranteed”.
	  
	  

		 Please note – Signature guarantees are not accepted from treasury branches or credit unions unless they are members of the Stamp Medallion Program.

	  
	  

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

	 3. 
	The Warrants shall only be transferable in accordance with applicable laws.

 
 
 
 
   
 	 
	
	

	 

 
 
 
 
  
 
 
 WARRANT EXERCISE GRID
  
 	 Warrant Shares Issued
	 Warrant Shares Available
	 Initials of Authorized Officer

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