Document:

SHARE PURCHASE AGREEMENT

 

AMONG

 

VBI VACCINES INC.

 

AND

 

THE INVESTORS PARTY HERETO

 

    	 	 	 

     

     

 

TABLE OF CONTENTS

 

	 	Page
	Article I DEFINITIONS	1
	 	 
	1.1 Definitions	1
	 	 
	Article II PURCHASE AND SALE 5	 
	 	 
	2.1 (a) Closing	5
	2.2 Pre-Closing and Closing Deliveries; Irrevocable Subscription.	5
	 	 
	Article III REPRESENTATIONS AND WARRANTIES	6
	 	 
	3.1 Representations and Warranties of the Company	6
	3.2 Representations and Warranties of the Investors	10
	 	 
	Article IV OTHER AGREEMENTS OF THE PARTIES	17
	 	 
	4.1 Transfer Restrictions.	17
	 	 
	Article V CONDITIONS	19
	 	 
	5.1 Conditions Precedent to the Obligations of the Investors	19
	5.2 Conditions Precedent to the Obligations of the Company	19
	 	 
	Article VI INDEMNIFICATION	20
	 	 
	6.1 Indemnification of Investors	20
	6.2 Conduct of Indemnification Proceedings	21
	 	 
	Article VII MISCELLANEOUS	21
	 	 
	7.1 Termination	21
	7.2 Fees and Expenses	21
	7.3 Entire Agreement; Further Assurances	21
	7.4 Notices	22
	7.5 Amendments; Waivers	22
	7.6 Construction	22
	7.7 Successors and Assigns	22
	7.8 No Third-Party Beneficiaries	22
	7.9 Governing Law; Venue; Waiver of Jury Trial	23
	7.10 Survival	23
	7.11 Execution	23
	7.12 Severability	23
	7.13 Independent Nature of Investors’ Obligations and Rights	23
	7.14 Representations	24
	 	 
	EXHIBITS	 
	 	 
	EXHIBIT	A-1
	EXHIBIT	A-2
	EXHIBIT	A-3
	APPENDIX
    1 TO EXHIBIT	A-3
	EXHIBIT	B

 

    	 	 	 

     

     

 

EXECUTION VERSION

 

 

SHARE PURCHASE AGREEMENT

 

THIS SHARE PURCHASE
AGREEMENT, dated as of December 5, 2016 (this “Agreement”), is by and among VBI Vaccines Inc., a corporation
organized under the laws of British Columbia, Canada (the “Company”), and each investor identified on the signature
pages hereto (each, an “Investor” and collectively, the “Investors”).

 

RECITALS

 

A. The Company and each
Investor are executing and delivering this Agreement in reliance upon the exemptions from registration afforded by, in the case
of U.S. Investors, Section 4(a)(2) of the Securities Act of 1933, as amended (the “Securities Act”), and Rule
506(b) of Regulation D (“Regulation D”), as promulgated by the United States Securities and Exchange Commission
(the “SEC”) thereunder, and, in the case of non-U.S. Investors, Regulation S (“Regulation S”),
as promulgated by the SEC under the Securities Act.

 

B. Each Investor, severally
and not jointly, wishes to purchase, and the Company wishes to sell, upon the terms and subject to the conditions stated in this
Agreement, that aggregate number of the Company’s common shares, no par value per share (“Common Shares”),
determined in accordance with Section 2.2(c) (the aggregate amount of Common Shares purchased by all Investors together,
the “Purchased Shares”).

 

NOW, THEREFORE, IN CONSIDERATION
of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of
which are hereby acknowledged, the Company and the Investors, intending to be legally bound hereby, agree as follows:

 

Article
I

DEFINITIONS

 

1.1 Definitions
In addition to the terms defined elsewhere in this Agreement, the following terms have the meanings indicated: 

 

“Affiliate”
means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common
control with a Person, as such terms are used in and construed under Rule 144 under the Securities Act.

 

“Agreement”
has the meaning set forth in the Preamble.

 

“Business Day”
means a day except (i) a Saturday, (ii) a Sunday, (iii) any day on which the SEC or banks in the City of New York are authorized
or required by law to be closed or (iv) a statutory or civic holiday in Vancouver, British Columbia.

 

“Closing”
means the closing of the purchase and sale of the Purchased Shares pursuant to Section 2.1.

 

“Closing Date”
means the date on which all of the conditions set forth in Article V (other than those to be satisfied at the Closing) shall
have been satisfied or waived.

 

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“Commission”
means the U.S. Securities and Exchange Commission.

 

“Common Shares”
has the meaning set forth in the Recitals.

 

“Company”
has the meaning set forth in the Preamble.

 

“Company Financial
Statements” has the meaning set forth in Section 3.1(g).

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

“FINRA”
has the meaning set forth in Section 3.2(d).

 

“GAAP”
means United States generally accepted accounting principles.

 

“IFRS”
means International Financial Reporting Standards, as adopted by the International Accounting Standards Board, consistently applied
during the periods involved.

 

“Indebtedness”
means, with respect to any Person, without duplication (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken
or assumed as the deferred purchase price of property or services (other than trade payables entered into in the ordinary course
of business), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments,
(D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in
connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional
sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired
with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event
of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement
which is classified as a capital lease, and (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for
which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien, pledge,
charge, security interest or other encumbrance upon or in any property or assets (including accounts and contract rights) owned
by such Person, even though such Person which owns such assets or property has not assumed or become liable for the payment of
such indebtedness.

 

“Indemnified Person”
has the meaning set forth in Section 6.2.

 

“Investment Amount”
has the meaning set forth in Section 2.2(a).

 

“Investor”
has the meaning set forth in the Preamble.

 

“Investor Party”
has the meaning set forth in Section 6.1.

 

“Lien”
means any lien, charge, claim, security interest, pledge encumbrance, right of first refusal, preemptive right or other restriction.

 

    	 	2	 

    	 		 

     

“Material Adverse
Effect” means any condition, circumstance, or situation that may result in, or reasonably be expected to result in (i)
a material adverse effect on the legality, validity or enforceability of this Agreement or any of the Transaction Documents, (ii)
a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and
its Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform its obligations
hereunder or under any of the Transaction Documents in any material respect on a timely basis; provided, however, that with respect
to the immediately preceding clause (ii), none of the following shall be deemed in themselves to constitute, and none of the following
shall be taken into account in determining whether there has been, a Material Adverse Effect: (a) any change generally affecting
the economy, financial markets or political, economic or regulatory conditions in the United States, the State of Israel or any
other geographic region in which the Company and its subsidiaries conduct business (except, in each case, to the extent that the
Company or such subsidiary is disproportionately adversely affected relative to other participants in the industries in which the
Company or such subsidiary participate), (b) general financial, credit or capital market conditions, including interest rates or
exchange rates, or any changes therein, (c) conditions (or changes therein) in any industry or industries in which the Company
operates (including seasonal fluctuations) to the extent that such conditions do not disproportionately have a greater adverse
impact on the Company and its subsidiaries, taken as a whole, relative to other companies operating in such industry or industries,
(d) the announcement or pendency of this Agreement and the transactions contemplated hereby or (e) changes in applicable law, GAAP
or IFRS (or, in each case, any interpretations thereof).

 

“Material Contract”
means any contract of the Company that has been filed or was required to have been filed pursuant to Item 601(b)(10) of Regulation
S-K or Section 12.2 of National Instrument 51-102 – Ongoing Requirements for Issuers and Insiders, as applicable.

 

“NI 45-106”
has the meaning set forth in Section 3.2(f).

 

“Person”
means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization,
a government or any department or agency thereof and any other legal entity.

 

“PCMLTFA”
has the meaning set forth in Section 3.2(v).

 

“Proceeding”
means an action, claim, suit, investigation or proceeding (including, without limitation, a partial proceeding, such as a deposition),
whether commenced or threatened in writing.

 

“Public Disclosure
Record” means the Registration Statement on Form F-4 filed by the Company with the Commission (Registration No. 333-208761)
as declared effective by the Commission on April 8, 2016 and all documents and information filed by the Company under applicable
securities laws on the System for Electronic Document Analysis Retrieval (SEDAR) and on the Electronic Data Gathering, Analysis,
and Retrieval system (EDGAR), during the period commencing on the effective date of such Registration Statement and ending on the
Closing Date.

 

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“Purchase Price”
means $3.05 per Common Share.

 

“Purchased Shares”
has the meaning set forth in the Recitals.

 

“Regulation D”
has the meaning set forth in the Recitals.

 

“Representatives”
has the meaning set forth in Section 7.14.

 

“Required Approvals”
has the meaning set forth in Section 3.1(o).

 

“Rule 144”
means Rule 144 promulgated by the SEC under the Securities Act.

 

“SEC”
has the meaning set forth in the Recitals.

 

“Securities Act”
has the meaning set forth in the Recitals.

 

“Short Sales”
means and includes, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under
the Exchange Act and all types of direct and indirect stock pledges, forward sale contracts, options, puts, calls, short sales,
swaps, derivatives and similar arrangements (including on a total return basis), and sales and other transactions through non-U.S.
broker-dealers or foreign regulated brokers.

 

“Subsidiary”
means any corporation, association or other business entity of which the entity in question: (i) owns or controls fifty percent
(50%) or more of the outstanding equity securities either directly or through an unbroken chain of entities as to each of which
fifty percent (50%) or more of the outstanding equity securities is owned directly or indirectly by its parent (provided, that
there shall not be included any such entity the equity securities of which are owned or controlled in a fiduciary capacity); (ii)
in the case of partnerships, serves as a general partner; (iii) in the case of a limited liability company, serves as a manager
or a managing member; (iv) otherwise has the ability to elect a majority of the directors, trustees, managers, or managing members
thereof; or (v) under GAAP or IFRS, as applicable, consolidates in its financial statements.

 

“Trading Day”
means (i) a day on which the Common Shares are traded on the Trading Market or (ii) if the Common Shares are not listed or quoted
on the Trading Market, a day on which the Common Shares are quoted in the over-the-counter market as reported by the Pink Sheets
LLC (or any similar organization or agency succeeding to its functions of reporting prices); provided, that in the event that the
Common Shares are not listed or quoted as set forth in the immediately preceding clauses (i) or (ii), then Trading Day shall mean
a Business Day.

 

“Trading Market”
means the NASDAQ Capital Market.

 

“Transaction”
has the meaning set forth in Section 3.2(o).

 

“Transaction Documents”
means this Agreement, including the schedules and exhibits attached hereto, and each of the other agreements or instruments entered
into or executed by the parties hereto in connection with the transactions contemplated by this Agreement.

 

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“Transfer Agent”
means Computershare Investor Services Inc. or any successor transfer agent for the Company.

 

“TSX”
means the Toronto Stock Exchange.

 

Article
II

PURCHASE
AND SALE

 

2.1 Closing

 

Subject to the terms and
conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to each Investor, and such Investor shall,
severally and not jointly with any other Investor, purchase from the Company, such number of Purchased Shares determined in accordance
with Section 2.2(c). The date and time of the Closing shall be 10:00 a.m., New York City Time, on the Closing Date. The
Closing shall take place by electronic communication and delivery of the items to be delivered at Closing by facsimile or other
electronic transmission.

 

2.2 Pre-Closing and
Closing Deliveries; Irrevocable Subscription.

 

(a) Prior to the Closing,
each Investor shall deliver to a Company account, pursuant to the wire instructions which are provided as Exhibit B hereto
(the “Company Account”), the aggregate amount such Investor desires to invest in Purchased Shares, as set forth
on such Investor’s signature page to this Agreement, in U.S. dollars and in immediately available funds (the “Investment
Amount”), which Investment Amount shall be returned to the Investor by the Company solely in the event of a termination
of this Agreement pursuant to Section 7.1.

 

(b) At or prior to the Closing,
each Investor shall also deliver or cause to be delivered to the Company the following:

 

(i) a completed and executed
Investor signature page to this Agreement;

 

(ii) a completed Investor
Questionnaire in the form attached hereto as Exhibit A-1;

 

(iii) a completed and executed
copy of the Investor Certificate attached hereto as Exhibit A-2; and

 

(iv) a completed and executed
copy of the Canadian Investor Certificate attached hereto as Exhibit A-3.

 

(c) At the Closing, the Company
shall deliver or cause to be delivered to each Investor a copy of the Company’s instructions to its Transfer Agent, instructing
the Transfer Agent to issue in book entry form, inclusive of such restrictive and other legends as set forth in Section 4.1,
a number of Purchased Shares equal to such Investor’s Investment Amount divided by the Purchase Price (rounded down to the
nearest whole share), registered in the name of such Investor. The Company shall, promptly following Closing, return to each Investor
the balance of such Investor’s Investment amount, if any, that would have
otherwise been used to acquire a fractional Common Share.

 

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(d) Each Investor acknowledges
and agrees that such Investor’s delivery of each item required to be delivered by such Investor pursuant to Section 2.2(a)
and Section 2.2(b) is irrevocable prior to Closing, unless and until this Agreement is terminated in accordance with Section
7.1.

 

Article
III

REPRESENTATIONS
AND WARRANTIES

 

3.1 Representations
and Warranties of the Company The Company hereby represents and warrants to the Investors as follows: 

 

(a) Subsidiaries.
The Company owns, directly or indirectly, all of the capital stock or comparable equity interests of each Subsidiary free and clear
of any Lien (other than as required pursuant to that certain Amended and Restated Credit Agreement and Guaranty, dated as of the
date hereof, by and among the Company; Variation Biotechnologies (US), Inc.; Perceptive Credit Holdings, LP; and the Guarantors
thereto (as defined therein) (the “Credit Agreement”) and the restrictions on transfer arising under applicable securities
laws), and all issued and outstanding shares of capital stock or comparable equity interest of each Subsidiary are validly issued
and are fully paid, non-assessable and free of preemptive and similar rights.

 

(b) Organization and Qualification.
The Company and each Subsidiary is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization, as applicable, with the requisite power and legal authority to own and use its properties
and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation of any of
the provisions of its certificate or articles of incorporation, bylaws or other organizational or charter documents, as applicable.
The Company and each Subsidiary is duly qualified to do business and is in good standing as a foreign corporation or other entity
in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, would not, individually or in the aggregate,
have or reasonably be expected to result in a Material Adverse Effect and no Proceeding has been instituted seeking to revoke,
limit or curtail such power or authority or qualification.

 

(c) Authorization; Enforcement.
The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents to which it is a party and otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery by the Company of each of the Transaction Documents to which it is a party and the consummation by it of the transactions
contemplated hereby and thereby have been duly authorized by all necessary corporate action on the part of the Company, and no
further consent or action is required by the Company, its Board of Directors or its shareholders. Each of the Transaction Documents
to which it is a party has been (or upon delivery will be) duly executed by the Company and is, or when delivered in accordance
with the terms hereof, will constitute, the valid and binding obligation of the Company enforceable against the Company in accordance
with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating
to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification
and contribution provisions may be limited by applicable law.

 

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(d) No Conflicts.
The execution, delivery and performance by the Company of the Transaction Documents to which it is a party, the issuance and sale
of the Purchased Shares and the consummation by the Company of the transactions contemplated hereby and thereby do not, and will
not, (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation,
bylaws or other organizational or charter documents, as applicable, (ii) conflict with, or constitute a default (or an event that
with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of, any agreement (including any Material Contract), credit facility,
debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or
any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound, or affected, except to the
extent that such conflict, default, termination, amendment, acceleration or cancellation right would not have or reasonably be
expected to result in a Material Adverse Effect, or (iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority to which the Company or any Subsidiary is subject
or by which any material property or asset of the Company or any Subsidiary is bound or affected, except to the extent that such
violation would not have or reasonably be expected to result in a Material Adverse Effect.

 

(e) The Purchased Shares.
The Purchased Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens (other than restrictions on transfer
arising under applicable securities laws) and will not be subject to preemptive or similar rights of shareholders (other than those
imposed by the Investors).

 

(f) Capitalization.
All outstanding shares of capital stock of the Company and of each Subsidiary are duly authorized, validly issued, fully paid and
nonassessable and have been issued in compliance in all material respects with all applicable securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase any capital
stock of the Company or such Subsidiary.

 

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(g) Securities Laws Matters;
Financial Statements. The Company has filed all documents required to be filed by it in accordance with applicable securities
laws with the TSX and all other applicable regulatory authorities. All such documents and information comprising the Public Disclosure
Record, as of their respective dates (or, if amended, as of the date of such amendment), (1) did not contain any untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances in which they were made, not misleading, and (2) complied in all material respects with the requirements
of applicable securities laws, and any amendments to the Public Disclosure Record required to be made have been filed on a timely
basis with the applicable regulatory authorities and the TSX. The Company has not filed any confidential material change report
with any applicable regulatory authorities or the TSX that at the date of this Agreement remains confidential. The Company’s
audited consolidated financial statements as at and for the fiscal years ended December 31, 2015 and 2014 (including the notes
thereto), as included in the Public Disclosure Record (collectively, the “Company Financial Statements”), were
prepared in accordance with IFRS consistently applied (except (i) as otherwise indicated in such financial statements and the notes
thereto or, in the case of audited statements, in the related report of the Company’s independent auditors, or (ii) in the
case of unaudited interim statements, are subject to normal period-end adjustments (none of which are material, individually or
in the aggregate) and may omit notes which are not required by applicable laws in the unaudited statements) and present fairly
in all material respects the consolidated financial condition, results of operations, changes in financial position of the Company
and its Subsidiaries as of the dates thereof and for the periods indicated therein (subject, in the case of any unaudited interim
financial statements, to normal period-end adjustments, none of which are material, individually or in the aggregate) and reflect
reserves required by IFRS or GAAP, as applicable, in respect of all material contingent liabilities, if any, of the Company and
its Subsidiaries on a consolidated basis. Other than the Company changing its accounting principles from IFRS to GAAP commencing
with the first quarter of 2016, there has been no material change in the Company’s accounting policies, except as described
in the notes to the Company Financial Statements, since December 31, 2015. All Material Contracts to which the Company or any Subsidiary
is a party or to which the property or assets of the Company or any Subsidiary are subject are included as part of or identified
in the Public Disclosure Record.

 

(h) Absence of Litigation.
Except as disclosed in the Public Disclosure Record, there is no action, suit, claim, or Proceeding pending, or, to the Company’s
knowledge, threatened, before or by any court, public board, government agency, self-regulatory organization or body that adversely
affect or challenge the legality, validity or enforceability of any of the Transaction Documents or that would, individually or
in the aggregate, have or be reasonably likely to result in a Material Adverse Effect.

 

(i) Compliance. Except
as would not, individually or in the aggregate, have or be reasonably likely to result in a Material Adverse Effect, (i) neither
the Company nor any Subsidiary is in default under or in violation of (and no event has occurred that has not been waived that,
with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or
any Subsidiary received written notice of a claim that it is in default under or that it is in violation of, any indenture, loan
or credit agreement or any other agreement (including any Material Contract) or instrument to which it is a party or by which it
or any of its properties is bound (whether or not such default or violation has been waived), (ii) neither the Company nor any
Subsidiary is in violation of any order of any court, arbitrator or governmental body, or (iii) neither the Company nor any Subsidiary
is or has been in violation of any statute, rule or regulation of any governmental authority.

 

(j) Title to Assets.
Neither the Company nor any Subsidiary owns real property. The Company and each Subsidiary has good and marketable title in all
personal property owned by them that is material to the business of the Company and each Subsidiary, in each case free and clear
of all Liens, except for Liens that do not, individually or in the aggregate, have or are reasonably likely to result in a Material
Adverse Effect. Any real property and facilities held under lease by the Company or any Subsidiary is held by it under valid, subsisting
and enforceable leases of which the Company and each Subsidiary is in material compliance.

 

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(k) Intellectual Property.
The Company and its subsidiaries own or possess adequate rights or licenses to use all material trademarks, trade names, service
marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental
authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. Except for matters
described in the Public Disclosure Record, or matters which would not be reasonably likely to have a Material Adverse Effect, the
Company and its Subsidiaries do not have any knowledge of any violation or infringement by the Company or its Subsidiaries of trademark,
trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations,
trade secret or other similar rights of others, and, to the knowledge of the Company, there is no claim, action or Proceeding being
made or brought against, or to the Company’s knowledge, being threatened against, the Company or its subsidiaries regarding
trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations,
trade secret or other violation or infringement; and the Company and its Subsidiaries are unaware of any facts or circumstances
which might give rise to any of the foregoing. The Company and its Subsidiaries have taken reasonable security measures to protect
the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so would not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(l) Insurance. The
Company and each Subsidiary is insured by insurers of recognized financial responsibility against such losses and risks and in
such amounts as are prudent and customary in the businesses and locations in which the Company and each Subsidiary is engaged.
Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage
as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business.

 

(m) Internal Accounting
Controls. The Company and each Subsidiary maintain a system of internal accounting controls sufficient to provide reasonable
assurance that (i) transactions are executed in accordance with management’s general or specific authorizations, (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles
and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management’s general or
specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences.

 

(n) Indebtedness.
Except as disclosed in the Public Disclosure Record, neither the Company nor any Subsidiary (i) has any outstanding Indebtedness,
(ii) is in violation of any term of and is not in default under any contract, agreement or instrument relating to any Indebtedness,
except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect or (iii)
is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the reasonable judgment
of the Company’s officers, would have or is expected to result in a Material Adverse Effect.

 

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(o) Filings, Consents
and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or
make any filing or registration with, any court or other federal, state, local, provincial or other governmental authority or other
Person in connection with the execution, delivery and performance by the Company of the Transaction Documents (including the issuance
of the Purchased Shares), other than (i) filings required by applicable securities laws, (ii) the filing of a Notice of Sale of
Securities on Form D with the SEC under Regulation D, (iii) the filing with the securities commissions in the applicable jurisdictions
in Canada, within 10 days from the date of the sale of the Purchased Shares, of a Form 45-106F1 or Form 45-106F6, as applicable,
prepared and executed in accordance with applicable securities laws and accompanied by the prescribed fees, if any, (iv) the filing
of any requisite notices and/or application(s) to the applicable Trading Market, any national securities exchange or the TSX for
the issuance and sale of the Purchased Shares and the listing of the Purchased Shares for trading or quotation, as the case may
be, thereon in the time and manner required thereby and (v) those that have been made or obtained prior to the date of this Agreement
(collectively, the “Required Approvals”).

 

(p) Certain Fees.
Except with respect to compensation payable to Laidlaw & Company (UK) Ltd. and any of the Company’s officers, directors
and employees, no brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiaries to
any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the
transactions contemplated by the Transaction Documents. The Investors shall have no obligation with respect to any fees or with
respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section 3.1 that may
be due in connection with the transactions contemplated by the Transaction Documents.

 

(q) Private Placement.
Assuming the accuracy of the Investors’ representations and warranties set forth in Section 3.2 and their compliance
with their agreements contained in this Agreement, no registration under the Securities Act is required for the offer and sale
of the Purchased Shares by the Company to the Investors pursuant to the terms of this Agreement.

 

(r) No General Solicitation.
Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Purchased Shares by any form
of general solicitation or general advertising.

 

3.2 Representations
and Warranties of the Investors Each Investor hereby, as to itself only and for no other Investor, represents and warrants
to the Company as follows: 

 

(a) Organization; Authority.
Such Investor, if such Investor is not a natural person, is an entity duly organized, validly existing and in good standing under
the laws of the jurisdiction of its organization with the requisite corporate, limited liability company, partnership or other
power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to
carry out its obligations hereunder and thereunder. The purchase by such Investor of the Purchased Shares hereunder and the consummation
of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate, partnership
or other action on the part of such Investor. This Agreement and the Transaction Documents to which such Investor is a party or
has or will execute have been duly executed and delivered by such Investor and constitute the valid and binding obligations of
such Investor, enforceable against it in accordance with their terms, except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

    	 	10	 

    	 		 

     

(b) Legal Capacity.
If the Investor is an individual, the Investor is of the full age of majority in the jurisdiction in which this Agreement is executed
and is legally competent to execute, deliver and be bound by this Agreement, to perform all of its obligations hereunder and to
undertake all actions required of the Investor hereunder.

 

(c) No Public Sale or
Distribution. Such Investor is acquiring the Purchased Shares in the ordinary course of business for its own account and not
with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered
under the Securities Act or under an exemption from such registration and in compliance with applicable securities laws, and such
Investor does not have a present arrangement to effect any distribution of any of the Purchased Shares to or through any person
or entity.

 

(d) Non-U.S. Person.
If such Investor’s address as set forth on such Investor’s signature page to this Agreement is not a U.S. address,
then such investor represents and warrants that he, she or it is not a “U.S. person” as defined in Rule 902
of Regulation S.

 

(e) Accredited Investor;
Investor Status. Such Investor is an “accredited investor” as defined in Rule 501(a) under the Securities Act or
a “qualified institutional buyer” as defined in Rule 144A(a) under the Securities Act. Such Investor is not a registered
broker dealer registered under Section 15(a) of the Exchange Act, or a member of the Financial Industry Regulatory Authority, Inc.
(“FINRA”) or an entity engaged in the business of being a broker dealer. Except as otherwise disclosed in writing
to the Company in such Investor’s Questionnaire, such Investor is not affiliated with any broker dealer registered under
Section 15(a) of the Exchange Act, or a member of the FINRA or an entity engaged in the business of being a broker dealer.

 

(f) Canadian Prospectus
Exemption. Such Investor is purchasing the Purchased Shares with the benefit of the prospectus exemption provided by Section
2.3 of National Instrument 45-106 – Prospectus Exemptions (“NI 45-106”) (that is, such Investor
is purchasing as principal and is an “accredited investor” within the meaning of Section 1.1 of NI 45-106); and is
either purchasing the Purchased Shares as principal for its own account, or is deemed to be purchasing the Purchased Shares as
principal for its own account in accordance with applicable securities laws.

 

(g) Creation of Accredited
Investor Status. If the Investor is an “accredited investor” in reliance on paragraph (m) of the definition of
“accredited investor” in section 1.1 of NI 45-106, the Investor was not created or used solely to purchase or hold
securities as an accredited investor under that paragraph (m).

 

    	 	11	 

    	 		 

     

 

(h) Insider Status.
Such Investor either (A) is not an “insider” of the Company or a “registrant” (each as defined under applicable
British Columbia securities laws) or (B) has identified itself to the Company as either an “insider” or a “registrant”
(each as defined under applicable British Columbia securities laws).

 

(i) Purchasers in Jurisdictions
other than the U.S. and Canada. If the Investor, or any beneficial person for whom the Investor is acting, is a resident of
or otherwise subject to the securities legislation of a jurisdiction other than the U.S. and Canada:

 

(i) it is knowledgeable
of, or has been independently advised so as to, the applicable securities legislation in the jurisdiction of its residence which
would apply to this Agreement. The delivery of this Agreement and the purchase of the Purchased Shares by such Investor does not
contravene the applicable laws (including applicable securities legislation) in the jurisdiction in which it is resident or to
which it is subject and does not trigger any obligation to prepare and file a prospectus, registration statement or similar document,
or any other report with respect to such purchase, or any registration or other obligation or reporting requirement on the part
of the Company, and it will provide such evidence of compliance with all such matters as the Company may request; and

 

(ii) the Investor certifies
that it is not resident in British Columbia and acknowledges that (a) no securities commission or similar regulatory authority
has reviewed or passed on the merits of the Purchased Shares; (b) there is no government or other insurance covering the Purchased
Shares; (c) there are risks associated with the purchase of the Purchased Shares; (d) there are restrictions on the Investor’s
ability to resell the Purchased Shares and it is the responsibility of the Investor to find out what those restrictions are and
to comply with them before selling the Purchased Shares; and (e) the Company has advised the Investor that the Company is relying
on an exemption from the requirements to provide the Investor with a prospectus and to sell the Purchased Shares through a person
registered to sell securities under the Securities Act (British Columbia) and, as a consequence of acquiring securities
pursuant to this exemption, certain protections, rights and remedies provided by the Securities Act (British Columbia),
including statutory rights of rescission or damages, will not be available to the Investor;

 

(j) General Solicitation.
Such Investor is not purchasing the Purchased Shares as a result of any advertisement, article, notice or other communication regarding
the Purchased Shares published in any newspaper, magazine or similar media, broadcast over television or radio, disseminated over
the Internet or presented at any seminar or any other general solicitation or general advertisement. Neither such Investor, nor
any Person acting on behalf of such Investor, has offered or sold, and does not presently intend to offer and sell at any future
time, any Purchased Shares by any form of general solicitation or general advertising.

 

(k) Experience of Such
Investor; Risk of Loss. Such Investor has such knowledge, sophistication and experience in business and financial matters so
as to be capable of evaluating the merits and risks of the prospective investment in the Purchased Shares, and has so evaluated
the merits and risks of such investment. Such Investor understands that it must bear the economic risk of its investment in the
Purchased Shares indefinitely, and is able to bear such risk and is able to afford a complete loss of such investment. Such Investor
has the ability to bear the economic risks of its prospective investment in the Purchased Shares and can afford the complete loss
of such investment.

 

    	 	12	 

    	 		 

      

(l) Access to Information.
Such Investor acknowledges that it has reviewed this Agreement and the Public Disclosure Record and has been afforded: (i) the
opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning
the Company and the terms and conditions of the offering of the Purchased Shares and the merits and risks of investing in the Purchased
Shares; (ii) access to information (other than material non-public information) about the Company and each Subsidiary and its financial
condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment;
and (iii) the opportunity to obtain such additional information that the Company possesses or can acquire without unreasonable
effort or expense that is necessary to make an informed investment decision with respect to the investment.

 

(m) No Governmental Review.
Such Investor understands that no U.S. federal or state agency, provincial securities commissions or similar regulatory authority
in Canada or any other government or governmental agency has passed on or made any recommendation or endorsement of the Purchased
Shares or the fairness or suitability of the investment in the Purchased Shares nor have such authorities passed upon or endorsed
the merits of the offering of the Purchased Shares. Such Investor acknowledges that there is no government or other insurance covering
the Purchased Shares.

 

(n) No Conflicts.
The execution, delivery and performance by such Investor of this Agreement and the consummation by such Investor of the transactions
contemplated hereby will not (i) result in a violation of the organizational documents of such Investor or (ii) conflict with,
or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Investor
is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including securities laws)
applicable to such Investor, except in the case of clauses (ii) and (iii) above, for such that are not material and do not otherwise
affect the ability of such Investor to consummate the transactions contemplated hereby or perform its obligations hereunder.

 

(o) Prohibited Transactions;
Confidentiality. Such Investor has not, directly or indirectly, and no Person acting on behalf of or pursuant to any understanding
with such Investor has, engaged in any purchases or sales in any of the Company’s securities, including derivatives thereof,
including, without limitation, any Short Sales involving any of the Company’s securities (a “Transaction”),
since the time that such Investor was first contacted by the Company or any other Person regarding an investment in the Company.
Such Investor covenants that neither it nor any Person acting on its behalf or pursuant to any understanding with such Investor
will engage, directly or indirectly, in any Transactions in the securities of the Company prior to the time the transactions contemplated
by this Agreement are publicly disclosed.

 

    	 	13	 

    	 		 

     

 

(p) No Legal, Tax or Investment
Advice. Such Investor understands and agrees that nothing in this Agreement or any other materials presented by or on behalf
of the Company to such Investor in connection with the purchase of the Purchased Shares constitutes legal, tax or investment advice.
Such Investor has consulted such legal, tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate
in connection with its purchase of the Purchased Shares and has made its own assessment and has satisfied itself concerning the
relevant tax and other economic considerations relevant to its investment in the Purchased Shares.

 

(q) Reliance on Exemptions.
Such Investor understands that the Purchased Shares are being offered and sold to it in reliance on specific exemptions from the
registration requirements of applicable securities laws, including the requirements to provide the Investor with a prospectus and
to sell securities through a person registered to sell securities under applicable Canadian securities laws, and that the Company
is relying upon the truth and accuracy of, and such Investor’s compliance with, the representations, warranties, agreements,
acknowledgments and understandings of such Investor set forth herein and in the other Transaction Documents in order to determine
the availability of such exemptions and the eligibility of such Investor to acquire the Purchased Shares. As a result of acquiring
the Purchased Shares pursuant to such exemptions:

 

(i) such Investor may be
restricted from using some of the protections, rights and remedies otherwise available under applicable Canadian securities laws,
including statutory rights of rescission or damages in the event of a misrepresentation;

 

(ii) such Investor may
not receive information that would otherwise be required to be provided to it under applicable Canadian securities laws; and

 

(iii) the Company is relieved
from certain obligations that would otherwise apply under applicable Canadian securities laws.

 

(r) Residency. Such
Investor is a resident of that jurisdiction specified on such Investor’s signature page to this Agreement.

 

(s) Transfer or Resale.
Such Investor understands that: (i) the Purchased Shares have not been and are not being registered under the Securities Act, any
U.S. state securities laws or the laws of any foreign country or other jurisdiction, and may not be offered for sale, sold, assigned
or transferred unless (A) subsequently registered thereunder or (B) such Investor shall have delivered to the Company an opinion
of counsel, in a form reasonably acceptable to the Company, to the effect that such Purchased Shares to be sold, assigned or transferred
may be sold, assigned or transferred pursuant to an exemption from such registration; (ii) any sale of the Purchased Shares made
in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any
resale of the Purchased Shares under circumstances in which the seller (or the Person through whom the sale is made) may be deemed
to be an underwriter (as that term is defined in the Securities Act) may require compliance with some other exemption under the
Securities Act or the rules and regulations of the SEC thereunder or any other limited exemptions and requirements under applicable
Canadian securities laws; and (iii) neither the Company nor any other Person is under any obligation to register the Purchased
Shares under the Securities Act, any state securities laws or any foreign securities laws or to comply with the terms and conditions
of any exemption thereunder.

 

    	 	14	 

    	 		 

     

(t) U.S. Legends.
Such Investor understands that the certificates or other instruments representing the Purchased Shares, except as set forth below,
shall bear any legend as required by the “blue sky” laws of any state and restrictive legends in substantially the
following forms (and a stop-transfer order may be placed against transfer of such stock certificates):

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (I) AS PART OF THEIR DISTRIBUTION AT ANY TIME OR (II) OTHERWISE
UNTIL SIX MONTHS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING THEREOF AND THE CLOSING DATE, EXCEPT IN EITHER CASE IN ACCORDANCE
WITH REGULATION S UNDER THE SECURITIES ACT. NO HEDGING TRANSACTION CAN BE CONDUCTED WITH REGARD TO THE SECURITIES EXCEPT AS PERMITTED
BY THE SECURITIES ACT. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT.

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS 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 COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS OR BLUE SKY LAWS.

 

Such Investor understands that the legends
set forth above shall be removed and the Company shall issue a certificate or other instrument without such legend to the holder
of the Purchased Shares upon which it is stamped, if, unless otherwise required by state securities laws, (i) such Purchased Shares
(x) are registered for resale pursuant to an effective registration statement under the Securities Act and (y) are resold pursuant
to such registration statement or (ii) in connection with a sale, assignment or other transfer pursuant to Rule 144, such holder
provides the Company with an opinion of a law firm reasonably acceptable to the Company, in a form reasonably acceptable to the
Company, to the effect that such sale, assignment or transfer may be made in compliance with Rule 144.

 

    	 	15	 

    	 		 

     

 

(u) Canadian Legends.

 

(i) Until the date that
is four months and one day following the Closing Date, any physical certificates representing the Purchased Shares must bear a
legend substantially in the following form:

 

UNLESS PERMITTED UNDER APPLICABLE CANADIAN
PROVINCIAL SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE OCTOBER 21, 2016.

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE LISTED ON THE TORONTO STOCK EXCHANGE (THE “TSX”); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH
THE FACILITIES OF THE TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH SECURITIES
IS NOT ‘GOOD DELIVERY’ IN SETTLEMENT OF TRANSACTIONS ON THE TSX.

 

(ii) In the event that
the Purchased Shares are entered into a direct registration or other electronic book entry system, or if the Investor did not directly
receive a certificate representing the Purchased Shares, the Company has hereby provided the Investor with written notice pursuant
to section 2.5(2)(3.1) of National Instrument 45-102 – Resale of Securities that:

 

UNLESS PERMITTED UNDER APPLICABLE CANADIAN
PROVINCIAL SECURITIES LEGISLATION, THE HOLDER OF COMMON SHARES MUST NOT TRADE THE COMMON SHARES BEFORE OCTOBER 21, 2016.”

 

(v) Not Proceeds of Crime.
The funds representing the Investment Amount which will be advanced by such Investor hereunder will not represent proceeds of crime
for the purposes of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada), as may be amended from
time to time (the “PCMLTFA”) and such Investor acknowledges that the Company may in the future be required by
law to disclose such Investor’s name and other information relating to this Agreement and such Investor’s subscription
hereunder, on a confidential basis, pursuant to the PCMLTFA. To the best of its knowledge: (i) none of the funds representing the
Investment Amount to be provided by such Investor: (A) have been or will be derived from or related to any activity that is deemed
criminal under the laws of Canada, the United States or any other jurisdiction, or (B) are being tendered on behalf of a person
or entity who has not been identified to such Investor; and (ii) such Investor shall promptly notify the Company if such Investor
discovers that any of such representations cease to be true, and to provide the Company with appropriate information in connection
therewith.

 

    	 	16	 

    	 		 

     

Article
IV

OTHER
AGREEMENTS OF THE PARTIES

 

4.1 Transfer Restrictions.

 

(a) The Investors covenant
that the Purchased Shares will be disposed of only pursuant to an effective registration statement or prospectus under, and in
compliance with the requirements of, the Securities Act and applicable Canadian securities laws or pursuant to an available exemption
from the registration or prospectus requirements of the Securities Act or applicable Canadian securities laws, as applicable, and
in compliance with applicable state securities laws. In connection with any transfer of Purchased Shares other than pursuant to
an effective registration statement, prospectus or to the Company, the Company may require the transferor to provide to the Company
an opinion of counsel selected by the transferor, the form and substance of which opinion shall be reasonably satisfactory to the
Company, to the effect that such transfer does not require registration under the Securities Act. Notwithstanding the foregoing,
the Company hereby consents to and agrees to register on the books of the Company and with its Transfer Agent, without any such
legal opinion, except to the extent that the Transfer Agent requests such legal opinion, any transfer of Purchased Shares by an
Investor to an Affiliate of such Investor, provided that such transfer does not involve a “sale” within the meaning
of Section 2(a)(3) of the Securities Act and provided that such Affiliate does not request any removal of any existing legends
on any certificate evidencing the Purchased Shares.

 

(b) The Investors agree to
the imprinting, until no longer required by this Section 4.1, of the legends, in substantially the following form, on any
certificate or other instrument evidencing any of the Purchased Shares:

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED OR SOLD WITHIN THE
UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (I) AS PART OF THEIR DISTRIBUTION AT ANY TIME OR (II) OTHERWISE
UNTIL SIX MONTHS AFTER THE LATER OF THE COMMENCEMENT OF THE OFFERING THEREOF AND THE CLOSING DATE, EXCEPT IN EITHER CASE IN ACCORDANCE
WITH REGULATION S UNDER THE SECURITIES ACT. NO HEDGING TRANSACTION CAN BE CONDUCTED WITH REGARD TO THE SECURITIES EXCEPT AS PERMITTED
BY THE SECURITIES ACT. TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S PROMULGATED UNDER THE SECURITIES ACT.

 

    	 	17	 

    	 		 

     

 

THESE SECURITIES HAVE NOT BEEN REGISTERED
WITH THE SECURITIES AND EXCHANGE COMMISSION IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS 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 COMPLIANCE WITH APPLICABLE STATE
SECURITIES LAWS OR BLUE SKY LAWS.

 

(c) The Investors agree that
any physical certificates evidencing the Purchased Shares will be endorsed with, or the ownership statement issued under a direct
registration system or other electronic book-entry system will bear, a legend setting out resale restrictions under applicable
Canadian securities laws in substantially the following form:

 

UNLESS PERMITTED UNDER APPLICABLE CANADIAN
PROVINCIAL SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE MARCH 6, 2017.

 

Additionally, the Investors
agree that any physical certificates representing the Purchased Shares will be endorsed with a legend setting out resale restrictions
pursuant to policies of the TSX in substantially the following form:

 

THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE LISTED ON THE TORONTO STOCK EXCHANGE (THE “TSX”); HOWEVER, THE SAID SECURITIES CANNOT BE TRADED THROUGH
THE FACILITIES OF THE TSX SINCE THEY ARE NOT FREELY TRANSFERABLE, AND CONSEQUENTLY ANY CERTIFICATE REPRESENTING SUCH SECURITIES
IS NOT ‘GOOD DELIVERY’ IN SETTLEMENT OF TRANSACTIONS ON THE TSX.

 

Certificates or another instrument evidencing
the Purchased Shares shall not be required to contain such legend or any other legend (i) following any sale of such Purchased
Shares pursuant to an effective registration statement or prospectus under the Securities Act or Canadian securities laws, as applicable,
(ii) pursuant to Rule 144 if the holder provides the Company with a legal opinion (and the documents upon which the legal opinion
is based) reasonably acceptable to the Company to the effect that the Purchased Shares can be sold under Rule 144 or (iii) if the
holder provides the Company with a legal opinion (and the documents upon which the legal opinion is based) reasonably acceptable
to the Company to the effect that the legend is not required under applicable requirements of the Securities Act (including controlling
judicial interpretations and pronouncements issued by the Staff of the SEC). The Company may not make any notation on its records
or give instructions to the Transfer Agent that expand the restrictions on transfer set forth in this Section 4.1.

 

    	 	18	 

    	 		 

     

 

Article
V

CONDITIONS

 

5.1 Conditions Precedent
to the Obligations of the Investors. The obligation of each Investor to acquire Purchased Shares at the Closing is subject
to the satisfaction, unless waived in writing by such Investor, at or before the Closing, of each of the following conditions: 

 

(a) Representations and
Warranties. The representations and warranties of the Company contained herein shall be true and correct in all material respects
as of the date when made and as of the Closing Date as though made on and as of the Closing Date (except for those representations
and warranties that speak as of a specific date, which shall be true and correct in all material respects as of such specified
date).

 

(b) Performance. The
Company shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by it at or prior to the Closing.

 

(c) Approvals. The
Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Purchased Shares (including all Required Approvals), all of which shall be and remain so long as necessary in full force
and effect.

 

(d) Transaction Documents.
The Company shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Investors.

 

(e) No Injunction.
No Proceeding shall have been filed and no statute, rule, regulation, executive order, decree, ruling or injunction shall have
been enacted, entered or promulgated by any court or governmental authority of competent jurisdiction that prohibits or seeks to
prohibit or otherwise challenges the consummation of any of the transactions contemplated by the Transaction Documents.

 

(f) Closing Deliveries.
The Company shall have delivered or caused to be delivered, all of the items required by Section 2.2(c).

 

5.2 Conditions Precedent
to the Obligations of the Company The obligation of the Company to sell the Purchased Shares at the Closing is subject to the
satisfaction or waiver by the Company, at or before the Closing, of each of the following conditions: 

(a) Representations and
Warranties. The representations and warranties of the Investors contained herein shall be true and correct in all material
respects as of the date when made and as of the Closing Date as though made on and as of the Closing Date (except for those representations
and warranties that speak as of a specific date, which shall be true and correct in all material respects as of such specified
date).

 

(b) Performance. The
Investors shall have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required
by the Transaction Documents to be performed, satisfied or complied with by the Investors at or prior to the Closing.

 

    	 	19	 

    	 		 

     

(c) Approvals. The
Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale
of the Purchased Shares (including all Required Approvals), all of which shall be and remain so long as necessary in full force
and effect.

 

(d) Deliverables.
The Investors shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.
The Investors shall have delivered to the Company those items required by Section 2.2(a) and Section 2.2(b).

 

(e) No Injunction.
No Proceeding shall have been filed and no statute, rule, regulation, executive order, decree, ruling or injunction shall have
been enacted, entered or promulgated by any court or governmental authority of competent jurisdiction that prohibits or seeks to
prohibit or otherwise challenges the consummation of any of the transactions contemplated by the Transaction Documents.

 

(f) Closing Deliveries.
The Investors shall have delivered or caused to be delivered, all of the items required by Section 2.2(b).

 

Article
VI

INDEMNIFICATION

 

6.1 Indemnification
of Investors The Company will indemnify and hold each Investor and its directors, officers, shareholders, members, partners,
employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding
a lack of such title or any other title), each Person who controls such Investor (within the meaning of Section 15 of the Securities
Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and
any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any
other title) of such controlling person (each, an “Investor Party”) harmless from any and all losses, liabilities,
obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs
and reasonable attorneys’ fees and reasonable costs of investigation that any such Investor Party may suffer or incur, as
a result of or relating to third party claims against such Investor relating to any breach of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other Transaction Documents, provided that that such a
claim for indemnification relating to any breach of any of the representations or warranties made by the Company in this Agreement
is made within six months from the Closing. The Company will not be liable to any Investor Party under this Agreement to the extent,
but only to the extent that a loss, claim, damage or liability is attributable to any Investor Party’s breach of any of the
representations, warranties, covenants or agreements made by such Investor Party in this Agreement or in the other Transaction
Documents. 

 

    	 	20	 

    	 		 

     

6.2 Conduct
of Indemnification Proceedings Promptly after receipt by any Person (the “Indemnified Person”) of notice of any
demand, claim or circumstances which would or might give rise to a claim or the commencement of any action, proceeding or investigation
in respect of which indemnity may be sought pursuant to Section 6.1, such Indemnified Person shall promptly notify the Company
in writing, and the Company shall assume the defense thereof, and shall assume the payment of all fees and expenses; provided,
however , that the failure of any Indemnified Person so to notify the Company shall not relieve the Company of its obligations
hereunder except to the extent that the Company is actually prejudiced by such failure to notify. In any such proceeding, any Indemnified
Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such
Indemnified Person unless: (i) the Company and the Indemnified Person shall have mutually agreed to the retention of such counsel;
(ii) the Company shall have failed promptly to assume the defense of such proceeding and to employ counsel reasonably satisfactory
to such Indemnified Person in such proceeding; or (iii) in the reasonable judgment of counsel to such Indemnified Person, representation
of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them in such
proceeding; provided, that, in the case of the foregoing clauses (i) through (iii), the Company shall not pay for more than one
counsel for all Indemnified Persons. The Company shall not be liable for any settlement of any proceeding effected without its
written consent, which consent shall not be unreasonably withheld, delayed or conditioned. Without the prior written consent of
the Indemnified Person, which consent shall not be unreasonably withheld, delayed or conditioned, the Company shall not effect
any settlement of any pending or threatened proceeding in respect of which any Indemnified Person is or could have been a party
and indemnity could have been sought hereunder by such Indemnified Party, unless such settlement includes an unconditional release
of such Indemnified Person from all liability arising out of such proceeding.

 

Article
VII

MISCELLANEOUS

 

7.1 Termination
This Agreement may be terminated at any time prior to Closing upon notice by the Company to the Investors of such termination. 

 

7.2 Fees and Expenses
Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation,
execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes
and duties levied in connection with the sale and issuance of the applicable Purchased Shares. 

 

7.3 Entire
Agreement; Further Assurances The Transaction Documents, together with the Exhibits, Annexes and Schedules thereto, contain
the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings,
oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and
schedules. At or after the Closing, and without further consideration, the Company and the Investors will execute and deliver to
the Investors such further documents as may be reasonably requested in order to give practical effect to the intention of the parties
under the Transaction Documents. 

 

    	 	21	 

    	 		 

     

7.4 Notices
Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered
via facsimile or email at the facsimile number or email address specified in this Section 7.4 prior to 6:30 p.m. (New York City
time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via
facsimile or email at the facsimile number or email address specified in this Section 7.4 on a day that is not a Trading Day or
later than 6:30 p.m. (New York City time) on any Trading Day, (c) the Trading Day following the date of deposit with a nationally
recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The
addresses, facsimile numbers and email addresses for such notices and communications are those set forth on the signature pages
hereof, or such other address or facsimile number as may be designated in writing hereafter, in the same manner, by any such Person. 

 

7.5 Amendments;
Waivers No provision of this Agreement may be waived or amended except in a written instrument signed, in the case of an amendment,
by the Company and the Investors holding or having the right to acquire a majority of the Purchased Shares at the time of such
amendment or, in the case of a waiver, by the party against whom enforcement of any such waiver is sought. No waiver of any default
with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay
or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

 

7.6 Construction
The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof. The language used in this Agreement will be deemed to be the language chosen by the parties
to express their mutual intent, and no rules of strict construction will be applied against any party. 

 

7.7 Successors
and Assigns This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
permitted assigns. None of the parties may assign this Agreement or any of its respective rights or obligations hereunder without
the prior written consent of the other parties; provided, however this Agreement may be assigned by the Company or any Investor
to any corporation or association into which the Company or any Investor, as applicable, may be merged or converted or with which
it may be consolidated, or any corporation, association or other similar entity resulting from any merger, conversion or consolidation
to which the Company or the Investor shall be a party, as applicable, without the execution or filing of any paper with any party
hereto or any further act on the part of any of the parties to this Agreement except where an instrument of transfer or assignment
is required by law to effect such succession, anything herein to the contrary notwithstanding. 

 

7.8 No
Third-Party Beneficiaries This Agreement is intended for the benefit of the parties hereto and their respective successors
and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

 

    	 	22	 

    	 		 

     

7.9 Governing
Law; Venue; Waiver of Jury Trial THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK without giving effect to any choice or conflict of law provision or rule that
would cause the application of the laws of any other jurisdiction. THE COMPANY AND INVESTORS HEREBY IRREVOCABLY SUBMIT TO
THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION
OF ANY DISPUTE BROUGHT BY THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR WITH ANY TRANSACTION CONTEMPLATED HEREBY
OR DISCUSSED HEREIN (INCLUDING WITH RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY IRREVOCABLY WAIVE,
AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING BROUGHT BY THE COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS NOT PERSONALLY
SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY
WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY
THEREOF VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT
FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND
NOTICE THEREOF. NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED
BY LAW. THE COMPANY AND INVESTORS HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY. 

 

7.10 Survival
Unless this Agreement is terminated under Section 7.1, the representations and warranties, agreements and covenants contained
herein shall survive indefinitely. Notwithstanding any termination of this Agreement pursuant to Section 7.1, the provisions of
Article VII shall survive indefinitely. 

 

7.11 Execution
This Agreement may be executed in counterparts, all of which when taken together shall be considered one and the same agreement.
In the event that any signature is delivered by facsimile transmission or email attachment, such signature shall create a valid
and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as
if such facsimile or email-attached signature page were an original thereof. 

 

7.12 Severability
If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of
the remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby and the parties will
attempt to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon so agreeing, shall incorporate
such substitute provision in this Agreement. 

 

7.13 Independent Nature
of Investors’ Obligations and Rights The obligations of each Investor under any Transaction Document are several and
not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the
obligations of any other Investor under any Transaction Documents. The decision of each Investor to purchase Common Shares pursuant
to this Agreement has been made by such Investor independently of any other Investor and independently of any information, materials,
statements or opinions as to the business, affairs, operations, assets, properties, liabilities, results of operations, condition
(financial or otherwise) or prospects of the Company which may have been made or given by any other Investor or by any agent or
employee of any other Investor, and no Investor or any of its agents or employees shall have any liability to any other Investor
(or any other person) relating to or arising from any such information, materials, statements or opinions. Nothing contained herein
or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors
as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in
any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Document.
Each Investor acknowledges that no other Investor has acted as agent for such Investor in connection with making its investment
hereunder and that no other Investor will be acting as agent of such Investor in connection with monitoring its investment hereunder.
Each Investor shall be entitled to independently protect and enforce its rights, including without limitation the rights arising
out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Investor to be joined
as an additional party in any Proceeding for such purpose. 

 

    	 	23	 

    	 		 

     

EXECUTION VERSION

 

7.14 Representations
Each Investor agrees that, except for the representations and warranties contained in Section 3.1, the Company makes no other
representations or warranties, and the Company hereby disclaims any other representations or warranties made by itself or any of
its directors, officers employees, investment bankers, financial advisors, attorneys, accountants, agents and other representatives
(collectively, “Representatives”), with respect to the execution and delivery of this Agreement and the other Transaction
Documents, notwithstanding the delivery or disclosure to any other party or any other party’s Representatives of any document
or other information with respect to any one or more of the foregoing. Without limiting the generality of the foregoing, and notwithstanding
any otherwise express representations and warranties made by the Company in this Agreement, each of the Investors agrees that neither
the Company nor any of its Subsidiaries makes or has made any representation or warranty with respect to (i) any projections, forecasts,
estimates, plans or budgets or future revenues, expenses or expenditures, future results of operations (or any component thereof),
future cash flows (or any component thereof) or future financial condition (or any component thereof) of the Company or any of
its Subsidiaries or the future business, operations or affairs of the Company or any of its Subsidiaries heretofore or hereafter
delivered to or made available to it, or (ii) any other information, statements or documents heretofore or hereafter delivered
to or made available to it with respect to the Company or any of its Subsidiaries or the business, operations or affairs of the
Company or any of its Subsidiaries, except to the extent and as expressly covered by a representation and warranty made in this
Agreement. 

 

[SIGNATURE PAGES FOLLOW]

 

    	 	24	 

    	 		 

     

EXECUTION VERSION

 

IN WITNESS WHEREOF,
the parties hereto have executed or caused this Share Purchase Agreement to be duly executed by their respective authorized signatories
as of the date first indicated above.

 

	 	VBI Vaccines Inc. 
	 	 	 
	 	By:	 
	 	Name:	Jeff Baxter 
	 	Title:	Chief Executive Officer
	 	 	 
	 	Address for Notice:
	 	
        222 Third Street, Suite 2241

        Cambridge, MA 02142

	 	 	 
	 	Facsimile No.: 888.391.2579
	 	Email: JBaxter@vbivaccines.com 
	 	Attn: Jeff Baxter, CEO
	 	 
	 	With a copy to:
	 	 
	 	Mitchell Silberberg & Knupp LLP
	 	
        11377 W. Olympic Blvd.

        Los Angeles, CA 90064

	 	 	 
	 	Facsimile No.: 310.312.3100
	 	Email: kxf@msk.com
	 	Attn: Kevin Friedmann, Esq.
	 	 	 

 

COMPANY SIGNATURE
PAGE TO SHARE PURCHASE AGREEMENT

 

    	 	 	 

     

     

Investor Signature Page

 

IN WITNESS WHEREOF, by
its execution and delivery of this signature page, the undersigned Investor hereby joins in and agrees to be bound by the terms
and conditions of that certain Share Purchase Agreement, dated as of December 5, 2016 (the “Purchase Agreement”),
by and among VBI Vaccines Inc., a corporation organized under the laws of British Columbia, Canada and the Investors (as defined
therein), as to the number of Purchased Shares set forth below such Investor’s name on this signature page, and authorizes
this signature page to be attached to the Purchase Agreement or counterparts thereof.

 

 

	 	Name of Investor:
	 	 
	 	By: 	 
	 	Name: 	 
	 	Title:	 

 

	 	Investment Amount: 	 

 

	 	Address:	 
	 	 
	 	 

 

	 	Telephone No.:	 
	 	Facsimile No.:	 
	 	Email Address:	 

 

Delivery Instructions (if different than above):

 

	c/o: 	 
	Address: 	 
	 
	 

	Telephone No.: 	 	 
	Facsimile No. : 	 	 
	Other Special Instructions: 	 

 

Exhibits:

 

A Instruction Sheet for
Investors

A-1 Investor Questionnaire

A-2 Investor Certificate

 

A-3 Canadian Investor Certificate

 

    	 	 	 

     

      

Exhibit A

 

INSTRUCTION
SHEET FOR INVESTOR

 

(to be read in conjunction with the entire Share
Purchase Agreement)

 

	A.	Complete the following items in the Share Purchase Agreement:
	 	 
	 	1.	Complete and execute the Investor Signature Page. The Share Purchase Agreement must be executed by an individual authorized to bind the Investor.
	 	 	 
	 	2.	Exhibit A-1 – Investor Questionnaire:
	 	 	 
	 	Provide the information requested by the Investor Questionnaire.
	 	 
	 	3	Exhibit A-2 - Investor Certificate:
	 	Provide the information requested by the Investor Certificate.
	 	 
	 	4.	Exhibit A-3- Canadian Investor Certificate
	 	Provide the information requested by the Canadian Investor Certificate.
	 	 
	 	5.	
        Return, via facsimile or email, the signed
        Share Purchase Agreement, including the properly completed Exhibits A-1, A-2 and A-3 to:

         

        Email:ggn@msk.com

	 	 	Facsimile:212.509.7239
	 	 	Telephone:917.546.7719
	 	 	Attn:Gabrielle Napolitano, Esq.
	 	 	 
	 	6.	After completing instruction number four (4) above, deliver the original signed Share Purchase Agreement, including the properly completed Exhibits A-1, A-2 and A-3 to:
	 	 	 
	 	 	
        Mitchell Silberberg & Knupp LLP

        12 East 49th Street, 30th Floor

        New York, NY 10017

        Attn: Gabrielle Napolitano, Esq.

	 	 	 
	B.	Instructions regarding the wire transfer of funds for the purchase of the Purchased Shares will be sent by facsimile or email to the Investor by the Company at a later date.

 

    	 	 	 

    	 		 

     

Exhibit A-1

 

VBI VACCINES
INC.

 

INVESTOR
QUESTIONNAIRE

 

	 	Please provide us with the following information:	 
	 	 	 
	1.	The exact name that the Purchased Shares are to be registered in (this is the name that will appear on any certificates or instruments evidencing the Purchased Shares). You may use a nominee name if appropriate:	 
	 	 	 
	2.	The relationship between the Investor and the registered holder listed in response to item 1 above (if other than the Investor):	 
	 	 	 
	3.	The mailing address, telephone and fax number and email address of the registered holder listed in response to item 1 above:	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	4.	The Tax Identification Number of the Registered Holder listed in response to item 1 above:	 

 

    	 	 A-1	 

    	 		 

     

Exhibit A-2

 

VBI
VACCINES INC.

 

CERTIFICATE
FOR CORPORATE, PARTNERSHIP, LIMITED LIABILITY COMPANY,

TRUST, FOUNDATION AND JOINT INVESTORS

 

If the Investor is a corporation,
partnership, limited liability company, trust, pension plan, foundation, joint Investor (other than a married couple) or other
entity, an authorized officer, partner, or trustee must complete, date and sign this Certificate.

 

CERTIFICATE

 

The undersigned certifies
that the representations and responses below are true and accurate:

 

(a)       The
Investor has been duly formed, is validly existing and has full power and authority to invest in the Company. The person signing
on behalf of the undersigned has the authority to execute and deliver the Share Purchase Agreement on behalf of the Investor and
to take other actions with respect thereto.

 

(b)       Indicate
the form of entity of the undersigned:

 

____Limited Partnership

 

____General Partnership

 

____Limited Liability
Company

 

____Corporation

 

____Revocable Trust (identify
each grantor and indicate under what circumstances the trust is revocable by the grantor):

 

 

 

 

(Continue on a separate piece of paper, if
necessary.)

 

____Other type of Trust
(indicate type of trust and, for trusts other than pension trusts, name the grantors and beneficiaries):

 

 

 

 

(Continue on a separate piece of paper, if
necessary.)

 

____Other
form of organization (indicate form of organization (                                                                  

).

 

(c)Indicate the approximate
date the undersigned entity was formed:                  .

 

    	 	 A-2	 

    	 		 

     

(d)       In
order for the Company to offer and sell the Purchased Shares in conformance with applicable securities laws, the following information
must be obtained regarding your investor status. Please initial each category applicable to you as an Investor in the Company.

 

	 	___	1.	A bank as defined in Section 3(a)(2) of the Securities Act, or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the Securities Act whether acting in its individual or fiduciary capacity;
	 	 	 	 
	 	___	2.	A broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934;
	 	 	 	 
	 	___	3.	An insurance company as defined in Section 2(13) of the Securities Act;
	 	 	 	 
	 	___	4.	An investment company registered under the Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act;
	 	 	 	 
	 	___	5.	A Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958;
	 	 	 	 
	 	___	6.	A plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of $5,000,000;
	 	 	 	 
	 	___	7.	An employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974, if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment advisor, or if the employee benefit plan has total assets in excess of $5,000,000 or, if a self-directed plan, with investment decisions made solely by persons that are accredited investors;
	 	 	 	 
	 	___	8.	A private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940;
	 	 	 	 
	 	___	9.	Any partnership or corporation or any organization described in Section 501(c)(3) of the Internal Revenue Code or similar business trust, not formed for the specific purpose of acquiring the Purchased Shares, with total assets in excess of $5,000,000;
	 	 	 	 
	 	___	10.	A trust, with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Purchased Shares, whose purchase is directed by a sophisticated person as described in Rule 506(b)(2)(ii) of the Exchange Act;
	 	 	 	 
	 	___	11.	A “qualified institutional buyer” as defined by Rule 144A under the Securities Act;
	 	 	 	 
	 	___	12.	
        An entity in which all of the equity owners
        qualify under any of the above subparagraphs (or each such equity owner is a natural person who either (i) has an individual net
        worth, or joint net worth with such person’s spouse, in excess of $1,000,000 (exclusive of such person’s primary residence)[1]
        or (ii) had an individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s
        spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current
        year). If the undersigned belongs to this investor category only, list the equity owners of the undersigned, and, with respect
        to each equity owner that is not a natural person, the investor category which each such equity owner satisfies:

        ___________________________________________________________________________

        

        (Continue on a separate piece of paper, if necessary.)

 

    	 	 A-2	 

    	 		 

     

Please set forth in the
space provided below the (i) states, if any, in the U.S. in which you maintained your principal office during the past two years
and the dates during which you maintained your office in each state, (ii) state(s), if any, in which you are incorporated or otherwise
organized and (iii) state(s), if any, in which you pay income taxes.

 

 

 

 

 

 

 

 

 

 

 

	Dated:__________________________, 2016	 
	 	 
	 	 
	Print Name of Investor	 
	 	 
	 	 
	Name:	 
	Title:	 
	(Signature and title of authorized officer, partner or trustee)	 

 

 

 

 

	1	For purposes of calculation of net worth in paragraph (12) above, (i) the undersigned’s primary residence shall not be included as an asset; (ii) indebtedness secured by the undersigned’s primary residence, up to the estimated fair market value of such primary residence as of the date hereof, shall not be included as a liability (except that if the amount of such indebtedness outstanding as of the date hereof exceeds the amount outstanding as of 60 days before the date hereof, other than as a result of the acquisition of such primary residence, the amount of such excess shall be included as a liability) and (ii i) indebtedness that is secured by the undersigned’s primary residence in excess of the estimated fair market value of such primary residence as of the date hereof, shall be included as a liability. 

 

    	 	 A-2	 

    	 		 

     

Exhibit A-3

 

CANADIAN INVESTOR CERTIFICATE

 

TO:VBI Vaccines Inc. (the “Issuer”)

 

Reference is made to the share purchase agreement
between the Issuer and the undersigned (referred to herein as the “Purchaser”) dated as of the date hereof (the
“Share Purchase Agreement”). Upon execution of this Canadian Investor Certificate by the Purchaser, this Canadian
Investor Certificate shall be incorporated into and form a part of the Share Purchase Agreement. Terms not otherwise defined
herein have the meanings attributed to them in the Share Purchase Agreement and in National Instrument 45-106 Prospectus Exemptions
(“NI 45-106”)[2]. All monetary references are in Canadian dollars.

 

In connection with the purchase of the Purchased
Shares by the Purchaser, the Purchaser represents, warrants and covenants (on its own behalf or, if applicable, on behalf of those
for whom the Purchaser is contracting under the Share Purchase Agreement) and certifies to the Issuer and acknowledges that the
Issuer is relying thereon that:

 

Prospectus Exemption

 

	
        A

         

        [  ]
	
        the clause checked below applies:

         

        (i)       the
        Purchaser is purchasing the Purchased Shares as principal; or

         

	[  ]	
        (ii)      the
        Purchaser is deemed to be purchasing as principal under Applicable Securities Laws, in accordance with the following statutory
        provision:

         

        [State particulars, including statutory
        provision and basis on which Purchaser is deemed to be purchasing as principal]

         

	 	 
	 	 
	B	
        one of the following clauses (1), (2) or (3)
        applies (Please check the applicable exemptions upon which the Purchaser is relying):

         

	[  ]	(1)	
        the Purchased Shares have an acquisition cost
        to the Purchaser of not less than $150,000 paid in cash, and the Purchaser is not an individual or an entity created or used solely
        to purchase or hold securities in reliance upon the exemption contained in section 2.10 of NI 45-106;

         

	 	(2)	
        the Purchaser is an “Accredited Investor”
        as such term is defined in NI 45-106, and as at the Closing Date, the Purchaser falls within the following categories:

         

	[  ]	 	(a)	a Canadian financial institution, or a Schedule III bank,
	 	 	 	 	 

 

 

 

	2	Terms used herein that are defined in National Instrument 14-101 (“NI 14 -101”) as adopted by the securities regulatory authority in the jurisdiction of the Purchaser have the meaning given to them in NI 14 -101 and terms used herein that are defined in the securities legislation of the jurisdiction of the Purchaser have the meaning given to them in that legislation. Reference should be made to NI 45-106 itself for its complete text, including other definitions, and to the Companion Policy to NI 45 -106 for matters of interpretation and application.

 

 

    	 	 A-3	 

    	 		 

     

 

 

 

	[  ]	(b)	the Business Development Bank of Canada incorporated under the Business Development Bank of Canada Act (Canada),
	 	 	 
	 [  ]	(c)	a subsidiary of any person referred to in paragraphs (a) or (b), if the person owns all of the voting securities of the subsidiary, except the voting securities required by law to be owned by directors of that subsidiary,
	 	 	 
	[  ]	(d)	a person registered under the securities legislation of a jurisdiction of Canada as an adviser or dealer,
	 	 	 
	[  ]	(e)	an individual registered under the securities legislation of a jurisdiction of Canada as a representative of a person referred to in paragraph (d),
	 	 	 
	[  ]	(e.1)	an individual formerly registered under the securities legislation of a jurisdiction of Canada, other than an individual formerly registered solely as a representative of a limited market dealer under one or both of the Securities Act (Ontario) or the Securities Act (Newfoundland and Labrador),
	 	 	 
	[  ]	(f)	the Government of Canada or a jurisdiction of Canada, or any crown corporation, agency or wholly owned entity of the Government of Canada or a jurisdiction of Canada,
	 	 	 
	[  ]	(g)	a municipality, public board or commission in Canada and a metropolitan community, school board, the Comité de gestion de la taxe scolaire de l’île de Montréal or an intermunicipal management board in Québec;
	 	 	 
	[  ]	(h)	any national, federal, state, provincial, territorial or municipal government of or in any foreign jurisdiction, or any agency of that government,
	 	 	 
	[  ]	(i)(i)	a pension fund that is regulated by either the Office of the Superintendent of Financial Institutions (Canada) or a pension commission or similar regulatory authority of a jurisdiction of Canada,
	 	 	 
	
        [  ]

         

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

         

        Note: if you fall within this category,
        please complete the following steps:

         

        Step 1: Complete the Risk Acknowledgement
        Form at Appendix I to this Schedule A

         

        Step 2: Complete the following tables with
        information for individual alone or with spouse 

 

	 	I, alone, own the following categories of Net Financial Assets:	 	I, together with my spouse, own the following categories of Net Financial Assets:
	 	 	 	 	 	 
	 	Net Financial Assets 	 	 	Net Financial Assets	 
	 	 	 	 	 	 
	 	Cash	[  ]	 	Cash	[  ]
	 	Securities	[  ]	 	Securities	[  ]
	 	Contract of insurance or deposit	[  ]	 	Contract of insurance or deposit	[  ]
	 	Other	[  ] 	 	Other	[  ]

 

	 	such Net Financial Assets having the following aggregate value:	 	 	such Net Financial Assets having the following aggregate value:
	 	 	 	 	 	 
	 	Aggregate Value of Net Financial Assets	 	 	Aggregate Value of Net Financial Assets
	 	Under $500,000	[  ]	 	Under $500,000	[  ]
	 	$500,000-$900,000	[  ]	 	$500,000-$900,000	[  ]
	 	$900,000-$1,000,000	[  ]	 	$900,000-$1,000,000	[  ]
	 	Over $1,000,000	[  ]	 	Over $1,000,000	[  ]

 

    	 	 A-3	 

    	 		 

     

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

         

        Note: if you fall within this category, please
        complete the following tables with information for individual alone:

 

	 	I, alone, own the following categories of Net Financial Assets:	 
	 	 	 	 
	 	Net Financial Assets 	 	 
	 	Cash	[  ]	 
	 	Securities	[  ]	 
	 	Contract of insurance or deposit	[  ]	 
	 	Other	[  ]  	 
	 	Such Net Financial Assets having the following aggregate value:	 
	 	 	 	 
	 	Aggregate Net Financial Assets	 	 
	 	Under $1,000,000	[  ]	 
	 	$1,000,000-$3,000,000	[  ]	 
	 	$3,000,000-$5,000,000	[  ]	 
	 	Over $5,000,000 	[  ]	 

 

	[  ]	(k)	
        an individual whose net income before taxes
        (“Net Income”) exceeded $200,000 in each of the 2 most recent calendar years or whose net income before taxes
        combined with that of a spouse exceeded $300,000 in each of the 2 most recent calendar years and who, in either case, reasonably
        expects to exceed that net income level in the current calendar year,

         

        Note: if you fall within this category,
        please complete the following steps:

         

        Step 1: Complete the Risk Acknowledgement
        Form at Appendix I to this Schedule A

         

        Step 2: Please provide the following information
        regarding actual or net income (check one category for each year): 

 

	 	Individual 	Joint Income With Spouse5	 
	 	 	 	 	 	 	 	 
	 	Net Income	2014	2015	Net Income	2014	2015	 
	 	Under $100,000	[  ]	[  ]	Under $150,000	[  ]	[  ]	 
	 	$100,000-$200,000	[  ]	[  ]	$150,000-$300,000	[  ]	[  ]	 
	 	$200,000-$500,000	[  ]	[  ]	$300,000-$500,000	[  ]	[  ]	 
	 	Above $500,000	[  ]	[  ]	Above $500,000	[  ]	[  ]	 

 

	 	I expect that my individual Net Income in 2016 will meet or exceed the above noted income levels. __Yes __No	 	I expect that my joint Net Income with my spouse in 2016 will meet or exceed the above noted income levels. __Yes __No

 

    	 	 A-3	 

    	 		 

     

	[  ]	(l)	
        an individual who, either alone or with a spouse[3],
        has net assets of at least $5,000,000,

         

        Note: if you fall within this category,
        please complete the following steps:

         

        Step 1: Complete the Risk Acknowledgement
        Form at Appendix I to this Schedule A.

         

        Step 2: Complete the following tables with
        information for individual alone or with Spouse

 

	 	I, alone, own the following categories of Net Assets:	 	I, together with my spouse, own the following categories of Net Assets:
	 	 	 	 	 	 
	 	Net Assets 	 	 	Net Assets 	 
	 	Cash	[  ]	 	Cash	[  ]
	 	Securities	[  ]	 	 Securities	[  ]
	 	Contract of insurance or deposit	[  ]	 	Contract of insurance or deposit	[  ]
	 	Real Estate	[  ]	 	Real Estate	[  ]
	 	Other	[  ]	 	Other	[  ]

 

	 	such Net Assets having the following aggregate value:	 	such Net Assets having the following aggregate value:
	 	 	 	 	 	 
	 	Aggregate Value of Net Assets	 	 	Aggregate Value of Net Assets	 
	 	 	 	 	 	 
	 	Under $1,000,000	[  ]	 	Under $1,000,000	[  ]
	 	$1,000,000-$3,000,000	[  ]	 	$1,000,000-$3,000,000	[  ]
	 	$3,000,000-$5,000,000	[  ]	 	$3,000,000-$5,000,000	[  ]
	 	Over $5,000,000	[  ]	 	Over $5,000,000	[  ]

 

	[  ]	(m)	
        a person, other than an individual or investment
        fund, that has net assets[4] of at least $5,000,000 as shown on its most recently prepared financial statements, and
        such person has not been created or used solely to purchase or hold securities as an accredited investor,

         

        Note: if you fall within this category,
        please provide the most recently prepared financial statements confirming this category. 

         

	[  ]	(n)	
        an investment fund that distributes or has
        distributed its securities only to

         

	 	 	
        (i)       a
        person that is or was an Accredited Investor at the time of the distribution,

         

        Note: if you fall within this category,
        please complete the following:

         

        I, ,
        am an authorized signatory of the Purchaser and confirm that the all persons who have been distributed securities of the investment
        are Accredited Investors and the Purchaser has done the necessary investigations to verify that fact.

 

 

 

 

	3	For pur poses of this certificate, the term “spouse” means an individual who (i) is married to another individual and is not living separate and apart within the meaning of the Divorce Act (Canada) from the other individual, (ii) is living with another individual in a marriage-like relationship, including a marriage-like relationship between individuals of the same gender, or (iii) in Alberta, is an individual referred to in paragraph (i) or (ii) above, or is an adult interdependent partner within the meaning of the Adult Interdependent Relationships Act (Alberta).
	4	For the purposes of this certificate, “net assets” means the value of the total assets of the purchaser less the value of the total liabilities.

 

    	 	 A-3	 

    	 		 

     

	 	 	(ii)	a person that acquires or acquired securities in the circumstances referred to in sections 2.10 of NI 45-106 [Minimum amount investment], or 2.19 of NI 45-106 [Additional investment in investment funds], or
	 	 	 	 
	 	 	(iii)	a person described in paragraph (i) or (ii) that acquires or acquired securities under section 2.18 of NI 45-106 [Investment fund reinvestment],

 

 

	[  ]	(o)	an investment fund that distributes or has distributed securities under a prospectus in a jurisdiction of Canada for which the regulator or, in Québec, the securities regulatory authority, has issued a receipt,
	[  ]	(p)	a trust company or trust corporation registered or authorized to carry on business under the Trust and Loan Companies Act (Canada) or under comparable legislation in a jurisdiction of Canada or a foreign jurisdiction, acting on behalf of a fully managed account managed by the trust company or trust corporation, as the case may be,
	[  ]	(q)	a person acting on behalf of a fully managed account[1] managed by that person, if that person is registered or authorized to carry on business as an adviser or the equivalent under the securities legislation of a jurisdiction of Canada or a foreign jurisdiction,
	[  ]	(r)	a registered charity under the Income Tax Act (Canada) that, in regard to the trade, has obtained advice from an eligibility adviser or an adviser registered under the securities legislation of the jurisdiction of the registered charity to give advice on the securities being traded[2],
	[  ]	(s)	an entity organized in a foreign jurisdiction that is analogous to any of the entities referred to in paragraphs (a) to (d) or paragraph (i) in form and function,
	[  ]	(t)	
        a person in respect of which all of the owners
        of interests, direct, indirect or beneficial, except the voting securities required by law to be owned by directors, are persons
        that are Accredited Investors,

         

        Note: if you fall within this category,
        please complete the following:

         

        I, ___________________________________,
        am an authorized signatory of the Purchaser and confirm that all owners of interest of the Purchaser are Accredited Investors and
        the Purchaser has done the necessary investigations to verify that fact.

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

         

        [  ]
	
        (v)       

         

        (w)       
	
        a person that is recognized or designated by
        the securities regulatory authority or, except in Ontario and Québec, the regulator as an Accredited Investor; or

         

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

         

	 	 	the Purchaser is purchasing pursuant to an exemption from prospectus requirements available to it under NI 45-106 not set out in (1) or (2) above, the particulars of which are set out below:
	 	 	 
	 	 	                                                                      
	 	 	 
	 	 	                                                                      

 

 

 

	 	By:	 
	 	 	Signature

 

 

 

	 	 
	 	
        Print name of Signatory 

        (if different from Purchaser)

	 	 
	 	 
	 	Title

 

 

 

 

 

	5	A “fully managed account” means an account of a client for which a person makes the investment decisions if that person has full discretion to trade in securities for the account without requiring the client’s express consent to a transaction.
	6	For the purposes of this certificate, an “eligibility adviser” means (a) a person that is registered as an investment dealer and authorized to give advice with respect to the Purchased Shares; and (b) in Saskatchewan or Manitoba, also means a lawyer who is a practising member in good standing with a law society of a jurisdiction of Canada or a public accountant who is a member in good standing of an institute or association of chartered accountants, certified general accountants or management accountants in a jurisdiction of Canada, provided that the lawyer or public accountant (a) does not have a professional, business or personal relationship with the Issuer, or any of its directors, executive officers, founders or control persons, and (b) has not acted for or been retained personally or otherwise as an employee, executive officer, director, associate or partner of a person or company that has acted for or been retained by the Issuer or any of its directors, executive officers, founders or control persons within the previous 12 months.

 

 

    	 	 A-3	 

    	 		 

     

APPENDIX 1 TO EXHIBIT “A-3”

 

INDIVIDUAL ACCREDITED INVESTOR RISK ACKNOWLEDGMENT
FORM

 

Form 45-106F9

 

Risk Acknowledgement Form for Accredited
Investors who are Individuals

 

 

	
        WARNING!

        This investment is
        risky. Don’t invest unless you can afford to lose all the

        money you pay for this
        investment

 

	SECTION 1 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER
	1. About your investment
	Type of securities: Common Shares 	Issuer: VBI Vaccines Inc. (the “Company”)
	Purchased from: the Company
	SECTIONS 2 TO 4 TO BE COMPLETED BY THE PURCHASER
	2. Risk acknowledgement
	This investment is risky. Initial that you understand that:	Your initials
	Risk of loss – You could lose your entire investment of $____________________ . [Instruction: Insert the total dollar amount of the investment.]	 
	Liquidity risk – You may not be able to sell your investment quickly – or at all.	 
	Lack of information – You may receive little or no information about your investment.	 
	Lack of advice – You will not receive advice from the salesperson about whether this investment is suitable for you unless the salesperson is registered. The salesperson is the person who meets with, or provides information to, you about making this investment. To check whether the salesperson is registered, go to www.aretheyregistered.ca.	 
	3. Accredited investor status
	You must meet at least one of the following criteria to be able to make this investment. Initial the statement that applies to you. (You may initial more than one statement.) The person identified in section 6 is responsible for ensuring that you meet the definition of accredited investor. That person, or the salesperson identified in section 5, can help you if you have questions about whether you meet these criteria.	Your initials
	• Your net income before taxes was more than $200,000 in each of the 2 most recent calendar years, and you expect it to be more than $200,000 in the current calendar year. (You can find your net income before taxes on your personal income tax return.)	 
	• Your net income before taxes combined with your spouse’s was more than $300,000 in each of the 2 most recent calendar years, and you expect your combined net income before taxes to be more than $300,000 in the current calendar year.	 
	• Either alone or with your spouse, you own more than $1 million in cash and securities, after subtracting any debt related to the cash and securities.	 
	• Either alone or with your spouse, you have net assets worth more than $5 million. (Your net assets are your total assets (including real estate) minus your total debt.)	 
	4. Your name and signature
	By signing this form, you confirm that you have read this form and you understand the risks of making this investment as identified in this form.
	First and last name (please print):
	Signature:	Date:
	SECTION 5 TO BE COMPLETED BY THE SALESPERSON
	5. Salesperson information
	[Instruction: The salesperson is the person who meets with, or provides information to, the purchaser with respect to making this investment. That could include a representative of the issuer, a registrant or a person who is exempt from the registration requirement.]
	First and last name of salesperson (please print):
	Telephone:	Email:
	Name of firm (if registered):
	SECTION 6 TO BE COMPLETED BY THE ISSUER OR SELLING SECURITY HOLDER
	6. For more information about this investment
	
        VBI Vaccines Inc. – 222
        Third Street, Suite 2241, Cambridge, Massachusetts 02142

         

        Attention: Jeff Baxter, Tel:
        (617) 830-3031, Email: JBaxter@vbivaccines.com, www.vbivaccines.com

         

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

	 	 	 	 	 

 Form instructions:

 

1.       The
information in sections 1, 5 and 6 must be completed before the purchaser completes and signs the form.

 

2.       The
purchaser must sign this form. Each of the purchaser and the issuer or selling security holder must receive a copy of this form
signed by the purchaser. The issuer or selling security holder is required to keep a copy of this form for 8 years after the distribution.

 

    	 	 A-3	 

    	 		 

     

EXHIBIT B

 

Company Account Wire Instructions

  

VBI Vaccines
Inc.

222 Third
Street, Suite 2241

Cambridge,
MA 02142

 

Beneficiary
account number: 0004 4660-595

 

Beneficiary
Bank: Bank of Montreal

 

Branch Address:
595 Burrard Street, Vancouver, B.C. V7X1L7

 

BMO’s
bank number: 00100040

 

BMO SWIFT
BIC Code: BOFMCAM2

 

USD correspondent
bank information

 

Pay through: Wells Fargo Bank (FKA Wachovia)

S.W.I.F.T BIC Code: PNBPUS3NNYC

AND - Fedwire ABA: 026005092

OR – CHIPS participant: 0509

 

    	 	Exhibit BEX-4.1

 Exhibit 4.1 

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE
THEREOF. THIS SECURITY MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN
THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE. 
 Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a limited-purpose trust company organized under the New York Banking Law (“DTC”), to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the name
of Cede & Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE
OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein. 

STATE STREET CORPORATION 

Fixed-to-Floating Rate Senior Notes Due 2023 
  

			
	No.	  	$
	CUSIP 857477 AZ6	  	Issue Date: May 15, 2017
	ISIN US857477AZ63	  	

 State Street Corporation, a corporation duly organized and existing under the laws of The Commonwealth of
Massachusetts (herein called the “Company,” which term includes any successor Person under the Indenture hereinafter referred to), for value received, hereby promises to pay to Cede & Co., or registered assigns, the principal sum
of                 MILLION Dollars ($            ) on May 15, 2023 (herein called the “Maturity
Date”), and to pay interest thereon (1) from and including May 15, 2017 to, but excluding, May 15, 2022 (such period herein called the “Fixed Rate Period”), or from and including the most recent Fixed Rate Interest
Payment Date (as defined below) to which interest has been paid or duly provided for, semi-annually in arrears on May 15 and November 15 (each, a “Fixed Rate Interest Payment Date”) of each year during the Fixed Rate Period,
commencing on November 15, 2017 and ending on May 15, 2022, at the rate of 2.653% per annum; and (2) from and including May 15, 2022, or from and including the most recent Floating Rate Interest Payment Date (as defined
below) to which interest has been paid or duly provided for, quarterly in arrears on August 15, 2022, November 15, 2022, February 15, 2023 and on the Maturity Date (each, a “Floating Rate Interest Payment Date” and
such period herein called the “Floating Rate Period”), at the rate of Three Month U.S. dollar LIBOR plus 0.635% per annum (as calculated below), reset quarterly, until the principal hereof is paid or made available for payment;
provided, that if a Floating Rate Interest Payment Date falls on a day that is not a Business Day and a London Business Day, then such date will be postponed to the next day that is both a Business Day and a London Business Day, except that, if the
next such date falls in the next calendar month, then such date will be advanced to the immediately preceding day that is both a Business Day and a London Business Day; and provided further, that if the Maturity Date is not a Business Day and a
London Business Day, any payment of principal and interest otherwise due on such day will be made on the next succeeding date that is both a Business Day and a London Business Day, and no interest on such payment shall accrue for the period from and
after such Maturity Date. 
 The interest so payable, and punctually paid or duly provided for, on any Fixed Rate Interest Payment Date
will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest, which shall be the May 1 and
November 1, whether or not a Business Day, next preceding such Fixed Rate Interest Payment Date. 
 The interest so payable, and
punctually paid or duly provided for, on any Floating Rate Interest Payment Date, other than on the Maturity Date, will, as provided in such Indenture, be paid to the Person in whose name this Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such interest, which shall be August 1, 2022, November 1, 2022 and February 1, 2023, whether or not both a London Business Day or a Business Day, next preceding
such Floating Rate Interest Payment Date. Interest paid on the Maturity Date shall be paid to the Person to whom the principal will be payable. 

 Any such interest not so punctually paid or duly provided for on such Fixed Rate Interest Payment
Date or Floating Rate Interest Payment Date shall forthwith cease to be payable to the Holder on such Regular Record Date and may either be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the
close of business on a Special Record Date for the payment of such Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of Securities of this series not less than 10 days prior to such Special Record Date, or be
paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Securities of this series may be listed, and upon such notice as may be required by such exchange, all as more fully provided
in said Indenture. 
 Payment of the principal of (and premium, if any) and any such interest on this Security will be made at the office or
agency of the Company maintained for that purpose in the City of Boston, Massachusetts, in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, that for so
long as this Security is a Global Security, payment of the principal of (and premium, if any) and any interest on this Security will be made by the Paying Agent by wire transfer in immediately available funds in U.S. dollars at the office of the
Paying Agent; provided further, that, in the case of payments made at maturity of such Global Security, the Global Security is presented to the Paying Agent in time for the Paying Agent to make such payments in accordance with its normal procedures.

 Interest on this Security during the Fixed Rate Period shall be paid on the basis of a 360-day year consisting of twelve 30-day months.
If a Fixed Rate Interest Payment Date for this Security falls on a day that is not a Business Day, the Company shall postpone the interest payment to the next succeeding Business Day, but the payments made on such dates shall be treated as being
made on the date that the payment was first due, and Holders of Securities of this series shall not be entitled to any further interest or other payments with respect to such postponement. 

The initial interest period during the Floating Rate Period for this Security is the period from and including May 15, 2022 to, but
excluding, the next Interest Reset Date (as defined below), and subsequent interest periods during the Floating Rate Period will be the periods from and including an Interest Reset Date to, but excluding, the next Interest Reset Date or Maturity
Date, as applicable. Interest on this Security during the Floating Rate Period will be computed on the basis of a 360-day year for the actual number of days elapsed. Interest will be reset on August 15, 2022, November 15, 2022 and
February 15, 2023 (each, an “Interest Reset Date”). If an Interest Reset Date for this Security falls on a day that is not both a Business Day and a London Business Day, then such date will be postponed to the next day that is both a
Business Day and a London Business Day, except that, if the next such date falls in the next calendar month, then such date will be advanced to the immediately preceding day that is both a Business Day and a London Business Day. For interest periods
during the Floating Rate Period, LIBOR will be determined by the calculation agent on the second London Business Day immediately preceding the first day of such interest period in the following manner: 

 

	 	•	 	LIBOR will be the offered rate per annum for three-month deposits in U.S. dollars, beginning on the first day of such period, as that rate appears on Reuters screen LIBOR01 (or any successor or replacement page) as of
approximately 11:00 A.M., London time, on the second London Business Day immediately preceding the first day of such interest period. 

  

	 	•	 	If the rate described above does not so appear on the Reuters screen LIBOR01 (or any successor or replacement page), then LIBOR will be determined on the basis of the rates, at approximately 11:00 A.M., London time, on
the second London Business Day immediately preceding the first day of such interest period, at which deposits of the following kind are offered to prime banks in the London interbank market by four major banks in that market selected by the
calculation agent: three-month deposits in U.S. dollars, beginning on the first day of such interest period, and in a Representative Amount. The calculation agent will request the principal London office of each of these banks to provide a quotation
of its rate. If at least two quotations are provided, LIBOR for the second London Business Day immediately preceding the first day of such interest period will be the arithmetic mean of the quotations. 

	 	•	 	If fewer than two of the requested quotations described above are provided, LIBOR for the second London Business Day immediately preceding the first day of such interest period will be the arithmetic mean of the rates
for loans of the following kind to leading European banks quoted, at approximately 11:00 A.M., New York City time, on the second London Business Day immediately preceding the first day of such interest period, by major banks in New York City
selected by the calculation agent: three-month loans of U.S. dollars, beginning on the first day of such interest period, and in a Representative Amount. 

  

	 	•	 	If no quotation is provided as described above, then the calculation agent, after consulting such sources as it deems comparable to any of the foregoing quotations or display page, or any such source as it deems
reasonable from which to estimate LIBOR or any of the foregoing lending rates, shall determine LIBOR for the second London Business Day immediately preceding the first day of such interest period in its sole discretion. 

The calculation agent is State Street Bank and Trust Company unless and until such time as a successor is appointed. The Company may appoint a
different institution to serve as calculation agent from time to time after the original issue date of this Security without the consent of holders of this Security and without notice. The calculation agent’s determination of any interest rate,
and its calculation of the amount of interest for any interest period, will be on file at the Company’s principal offices, will be made available to any noteholder upon request and will be final and binding in the absence of manifest error.

 A “Business Day” means any day other than a Saturday, Sunday or other day on which banking institutions in The City of New York
or The City of Boston are authorized or required by law or executive order to remain closed. 
 A “London Business Day” means each
Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in London generally are authorized or obligated by law, regulation or executive order to close and, in the case of any debt security for which LIBOR is
an interest rate basis, is also a day on which dealings in the applicable index currency are transacted in the London interbank market. 
 A
“Representative Amount” means an amount that, in the calculation agent’s judgment, is representative of a single transaction in the relevant market at the relevant time. 

The “Reuters screen” means the display on the Reuters 3000 Xtra service, or any successor or replacement service. 

All percentages resulting from any calculation of the interest rate on this Security during the Floating Rate Period will be rounded, if
necessary, to the nearest one hundred-thousandth of a percentage point, with five one-millionths of a percentage point rounded upwards (e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)), and all dollar amounts used in or
resulting from such calculations will be rounded to the nearest cent (with one-half cent being rounded upwards). 
 The interest rate on
this Security during the Floating Rate Period will in no event be higher than the maximum rate permitted by New York law as the same may be modified by United States law of general application. 

This Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued and to be
issued in one or more series under an Indenture, dated as of October 31, 2014 (herein called the “Base Indenture”), between the Company and U.S. Bank National Association, as trustee (herein called the “Trustee,” which term
includes any successor trustee under the Indenture), as supplemented by a First Supplemental Indenture, dated as of May 8, 2017, between the Company and the Trustee (the “First Supplemental Indenture” and together with the Base
Indenture, herein called the “Indenture”), and reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Trustee, and the Holders of the
Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. The offering of securities of the series that includes this Security is initially limited to $        
aggregate principal amount. 

 The Securities of this series are subject to redemption, at the election of the Company, upon not
less than 30 days’ and not more than 60 days written notice by mail to Holders, in whole, but not in part, on May 15, 2022, at a Redemption Price equal to 100% of the principal amount, plus accrued and unpaid interest thereon, if any, to,
but excluding the Redemption Date, as provided in the Indenture. 
 The Indenture contains provisions for defeasance at any time of the
entire indebtedness of this Security or certain restrictive covenants and Events of Default with respect to this Security, in each case upon compliance with certain conditions set forth in the Indenture. 

If an Event of Default with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series
may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with certain
exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by the Company and
the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding of each series to be affected. The Indenture also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the
Indenture and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer
hereof or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security. For the purpose of this paragraph, the term “default” means any event that is, or after notice or lapse of time
or both would become, an Event of Default or Covenant Breach in respect of such Securities. 
 As provided in and subject to the provisions
of the Indenture, the Holder of this Security shall not have the right to institute any proceeding with respect to the Indenture or for the appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall have
previously given the Trustee written notice of a continuing Event of Default or Covenant Breach with respect to the Securities of this series, the Holders of not less than 25% in principal amount of the Securities of this series at the time
Outstanding shall have made written request to the Trustee to institute proceedings in respect of such Event of Default or Covenant Breach, as applicable, as Trustee and offered the Trustee reasonable indemnity, and the Trustee shall not have
received from the Holders of a majority in principal amount of Securities of this series at the time Outstanding a direction inconsistent with such request, and shall have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted by the Holder of this Security for the enforcement of any payment of principal hereof or any premium or interest hereon on or after the respective due dates
expressed herein. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the
obligation of the Company, which is absolute and unconditional, to pay the principal of and any premium and interest on this Security at the times, place and rate, and in the coin or currency, herein prescribed. 

By acceptance of this Security, the Holder hereby waives, for itself and any and all successors and assigns, all rights under, and consents to
the termination of, and irrevocably authorizes the Company to terminate, without further action by or payment to any Holder of such Security, that certain Replacement Capital Covenant of the Company, dated as of April 30, 2007, in favor of and
for the benefit of each Covered Debtholder (as defined therein), as such agreement may be amended or restated from time to time (the “Replacement Capital Covenant”), in the event that the indebtedness represented by this Security is
designated as the Covered Debt (as defined in the Replacement Capital Covenant). 
 As provided in the Indenture and subject to certain
limitations therein set forth, the transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the office or agency of the Company in any place where the principal of and any
premium and interest on this Security are payable, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this series and of like tenor, or authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 

 The Securities of this series are issuable only in registered form without coupons in
denominations of $2,000 and integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of
Securities of this series and of like tenor of a different authorized denomination, as requested by the Holder surrendering the same. 
 No
service charge shall be made for any such registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 

Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee
may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

This Security shall be governed by and construed in accordance with the law of the State of New York. 

All terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture. 

Unless the certificate of authentication hereon has been executed by the Trustee by manual signature, this Security shall not be entitled to
any benefit under the Indenture or be valid or obligatory for any purpose. 
 - end of page - 

[Signatures appear on the following page] 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its
corporate seal. 
 Dated: May 15, 2017 
  

			
	STATE STREET CORPORATION
		
	By:	 	  

	Name:	 	Eric W. Aboaf
	Title:	 	Executive Vice President and Chief Financial Officer
		
	Attest:	 	
		
	By:	 	  

	Name:	 	David C. Phelan
	Title:	 	Executive Vice President, General Counsel and Assistant Secretary

  
 [Signature Page to
Note No.    ] 

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

U.S. BANK NATIONAL ASSOCIATION, as Trustee 

Dated: May 15, 2017 
  

			
	By:	 	  

	Name:	 	Laura Cawley
	Authorized Signatory

  
 [Trustee’s
Certificate of Authentication to Senior Note No.    ]

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