Document:

MICROMEM
      TECHNOLOGIES INC.

    

    SUBSCRIPTION
      AGREEMENT FOR UNITS

    

    
      	TO:	
              MICROMEM
                TECHNOLOGIES INC.

            

    

    

    1. Subscription

    

    The
      undersigned (the "Purchaser") hereby irrevocably subscribes for and agrees
      to
      purchase (the "Subscription Agreement"), on and subject to the terms and
      conditions set forth herein from Micromem Technologies Inc. (the
      "Corporation") such number of units of the Corporation (a "First Unit") as
      set
      forth in section 24 hereof (collectively the "Purchased Units") at a price
      of
      US$0.60 per First Unit (the "Subscription Price"). 

    

    2. Description
      of First Units

    

    Each
      First Unit shall consist of one common share of the Corporation (a "Common
      Share") and one warrant (a "First Warrant") each First Warrant exercisable
      for
      one unit (a "Second Unit") at a price of US$0.60 per Second Unit at any time
      during the 12 months following the date of issuance of the First Warrants.
      Each
      Second Unit shall consist of one Common Share (a "First Warrant Share") and
      one
      warrant (a "Second Warrant"), each Second Warrant exercisable for one Common
      Share (a "Second Warrant Share") at a price of US$0.60 per Second Warrant Share
      at any time during the period extending 24 months following the issuance of
      the
      First Unit to such Purchaser. Hereinafter a First Warrant and a Second Warrant
      may collectively be referred to as a "Warrant" and a First Warrant Share and
      a
      Second Warrant Share may collectively be referred to as a "Warrant
      Share".

    

    3. Payment

    

    The
      aggregate amount payable by the Purchaser in respect of the Purchased Units
      shall be paid on the Closing Date and shall be made by certified cheque, wire
      transfer or bank draft drawn on a Canadian chartered bank, and payable to the
      Corporation or payable in such other manner as may be specified by the
      Corporation. 

    

    All
      dollar amounts referred to herein are US dollars.

    

    4. Conditions
      of Closing

    

    The
      Purchaser must complete, sign and return one executed copy of this Subscription
      Agreement to the Corporation as soon as possible, and, in any event, no later
      than 12:00 noon (Toronto time) on ________, 200_ or such other time, date and/or
      place as the Corporation may advise.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    As
      a
      condition of Closing (as hereinafter defined), the Corporation must obtain
      any
      necessary approvals from all appropriate regulatory bodies in respect of the
      issue of the First Units. The Purchaser agrees to promptly execute and deliver
      all such documents and other instruments as any such regulatory body may
      require.

    

    In
      addition, the Purchaser shall agree to provide all other documentation, if
      any,
      required by the securities laws of the jurisdiction which the Purchaser is
      resident.

    

    If
      any
      regulatory body objects to the subscription by the Purchaser for the Purchased
      Units, the Corporation may, in its sole and absolute discretion, terminate
      this
      Subscription Agreement by providing written notice to the Purchaser of the
      Corporation's intention to do so and returning the Purchaser's subscription
      funds, and, upon providing such written notice, the Corporation will be released
      from any further obligations hereunder including, without limiting the
      generality of this foregoing, the obligation to issue the Purchased Units to
      the
      Purchaser.

    

    5. Facsimiled
      Subscriptions

    

    The
      Corporation will be entitled to rely on delivery by facsimile of an executed
      copy of this Subscription Agreement, and acceptance by the Corporation of such
      facsimile copy will be legally effective to create a valid and binding agreement
      between the Purchaser and the Corporation in accordance with the terms
      hereof.

    

    6. Closing

    

    Delivery
      and payment for the First Units will be completed (the "Closing") at the offices
      of the Corporation in Toronto, Ontario at 10:00 a.m. (Toronto time) (the
      "Closing Time") on or before _________, 200_ (the "Closing Date") or such
      earlier or later dates or times as the Corporation and the Purchaser may agree.
      This executed Subscription Agreement is open for acceptance in whole or in
      part
      by the Corporation at any time prior to the Closing Time. Confirmation of
      acceptance or rejection of a subscription will be forwarded to the Purchaser
      by
      the Corporation promptly after acceptance or rejection has been made. If this
      subscription is rejected in whole and if the Purchaser has delivered a certified
      cheque or bank draft representing the Subscription Price for the Purchased
      Units, then such cheque or bank draft will be promptly returned to the Purchaser
      without interest. If this subscription is accepted only in part and the
      Purchaser has delivered a certified cheque or bank draft as aforesaid, a cheque
      representing the portion of the Subscription Price for that portion of the
      Purchaser’s subscription for First Units which is not accepted will be promptly
      returned to the Purchaser without interest.

    

    Certificates
      for the securities comprising the First Units will be available for delivery
      against payment of the aggregate Subscription Price for the First Units by
      the
      Purchaser in freely tradable US funds. 

    

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    7. Prospectus
      Exemptions

    

    The
      Purchaser (on his or its own behalf or on behalf of others for whom he or it
      is
      contracting hereunder), acknowledges and agrees that the sale and delivery
      of
      the Purchased Units to the Purchaser (or to others for whom he or it is
      contracting hereunder) is conditional upon such sale being exempt from the
      requirements under applicable securities legislation requiring the filing of
      a
      prospectus in connection with the distribution of the First Units or the
      delivery of an offering memorandum (as defined in the applicable securities
      legislation), or upon the issuance of such rulings, orders, consents or
      approvals as may be required to permit such sale without the requirement of
      filing a prospectus or delivering an offering memorandum.

    

    The
      Purchaser (on
      his
      or its own behalf or on behalf of others for whom he or it is contracting
      hereunder)
      acknowledges and agrees that:

    

    
      	
              (a)

            	
              the
                Purchaser (or others for whom he or it is contracting hereunder)
                has not
                received, nor has he or it requested, nor does it have any need to
                receive, a prospectus or any offering memorandum, or any other document
                (other than financial statements, interim financial statements or
                any
                other document, the content of which is prescribed by statute or
                regulation) describing the business and affairs of the Corporation
                which
                has been prepared for delivery to, and reviewed by, prospective purchasers
                in order to assist he or it in making an investment decision in respect
                of
                the Purchased Units;

            

    

    

    
      	
              (b)

            	
              the
                Purchaser’s decision to execute this Subscription Agreement and purchase
                the Purchased Units (on
                his or its own behalf or on behalf of others for whom he or it is
                contracting hereunder)
                has not been based upon any verbal or written representations as
                to fact
                or otherwise made by or on behalf of the Corporation and that its
                decision
                (or the decision of others for whom it is contracting hereunder)
                is based
                entirely upon information concerning the Corporation contained in
                documents the content of which is prescribed by statute or
                regulation;

            

    

    

    
      	
              (c)

            	
              the
                sale of the Purchased Units was not accompanied by any advertisement
                in
                printed media of general and regular paid circulation, radio, television,
                the Internet or any other form of electronic media;
                and

            

    

    

    
      	
              (d)

            	
              the
                Purchaser (or others for whom he or it is contracting hereunder)
                has been
                advised to consult its own legal advisors with respect to trading
                in the
                securities comprising the First Units and to resale restrictions
                imposed
                by applicable securities legislation in the jurisdiction in which
                it
                resides, that no representation has been made respecting the applicable
                hold periods or other resale restrictions applicable to such securities,
                that the Purchaser (or others for whom he or it is contracting hereunder)
                is solely responsible (and the Corporation is not in any way responsible)
                for compliance with applicable resale restrictions and that the Purchaser
                is aware that he or it (or others for whom he or it is contracting
                hereunder) may not be able to resell such securities except in accordance
                with limited exemptions under applicable securities legislation and
                regulatory policy.

            

    

    

    
      
         

      

      
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    The
      Purchaser understands that all certificates representing the Purchased Units
      and
      all certificates issued in exchange therefor or in substitution or transfer
      thereof shall bear a legend respecting restrictions on transfer as required
      under applicable securities laws.

    

    The
      Purchaser agrees that the Corporation may be required by law or otherwise to
      disclose to regulatory authorities the identity of the Purchaser and each
      beneficial purchaser of First Units for whom the Purchaser may be
      acting.

    

    8. Representations,
      Warranties and Covenants of the Purchaser

    

    The
      Purchaser hereby represents, warrants and covenants to the Corporation (on
      his
      or its own behalf and, if applicable, on behalf of those for whom the Purchaser
      is contracting hereunder) to and with the Corporation (which representations,
      warranties and covenants shall survive Closing), and acknowledges that the
      Corporation is relying upon such representations, warranties and covenants
      in
      issuing the Purchased Units, that:

    

    
      	(a)	
              if
                the Purchaser is a resident of the Province of Ontario, the
                Purchaser:

            

    

     

    
      	 	
              (i)

            	
              in
                the case of a purchase by the Purchaser of the Purchased Units as
                principal for its own account and not for the benefit of any other
                person,
                the Purchaser is purchasing the Purchased Units as principal for
                its own
                account, and not for the benefit of any other person or company,
                for
                investment purposes only and not with a view to the resale or distribution
                of all or any of the Purchased Units, and this Subscription Agreement has
                been authorized, executed and delivered by, and constitutes a legal,
                valid
                and binding agreement of the undersigned,
                and:

            

    

    

    
      	 	 	
              (A)

            	
              the
                Purchaser qualifies and is purchasing as an "accredited investor",
                as such
                term is defined in Ontario Securities Commission Rule 45-501 (if
                subject
                to the securities legislation of the province of
                Ontario);

            

    

     

    
      	 	
              (ii)

            	
              in
                the case of the purchase by the Purchaser of the Purchased Units
                as agent
                for a disclosed principal, each beneficial purchaser of the Purchased
                Units for whom the Purchaser is acting is purchasing as principal
                for its
                own account and not for the benefit of any other person; the Purchaser
                is
                an agent with due and proper authority to execute this Subscription
                Agreement and all other documentation in connection with the purchase
                of
                the Purchased Units on behalf of the beneficial purchaser; and this
                Subscription Agreement has been duly authorized, executed and delivered
                by
                or on behalf of, and constitutes the legal, valid and binding agreement
                of, the disclosed principal; and the beneficial
                purchaser:

            

    

    

    
      	 	 	
              (A)

            	
              is
                an “accredited investor”, as such term is defined in Ontario Securities
                Commission Rule 45-501 (if subject to the securities legislation
                of the
                province of Ontario); 

            

    

    

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    
      	 	
              (iii)

            	
              in
                the case of the purchase by the Purchaser of the Purchased Units
                as
                trustee or as agent or as portfolio manager or portfolio advisor
                (as such
                terms are defined under applicable securities laws) for a principal
                which
                is undisclosed or identified by account number only, this Subscription
                Agreement has been duly authorized, executed and delivered by, and
                constitutes a legal, valid and binding agreement of, the undersigned
                acting in such capacity, and:

            

    

     

    
      	 	 	
              (A)

            	
              the
                beneficial purchaser of the Purchased Units for whom the Purchaser
                is
                acting is an individual or corporation and is purchasing as principal
                for
                its own account, and not for the benefit of any other person,
                and

            

    

    

    
      	 	 	 	
              (I)

            	
              is
                an "accredited investor", as such term is defined in Ontario Securities
                Commission Rule 45-501 (if subject to the securities legislation
                of the
                province of Ontario), or as such term is defined in Multilateral
                Instrument 45-103 (if subject to the securities legislation of the
                Province of Alberta); 

            

    

     

    and
      the
      Purchaser is a trustee or agent with due and proper authority to execute this
      agreement and all other documentation in connection with the subscription and
      purchase of the Purchased Units on behalf of the beneficial
      purchaser;

    

    
      	
              (b)

            	
              if
                the Purchaser is resident of the Province of Ontario, the Purchaser
                has
                duly completed and signed the Certificate of Ontario Accredited Investor
                in the form attached hereto as Schedule I (if subject to the securities
                legislation of the province of Ontario) and the contents of the applicable
                questionnaire are true and correct as of the date hereof and will
                be true
                and correct as of the date of the issue and sale of the Purchased
                Units.

            

    

    

    
      	
              (c)

            	
              the
                Purchaser has such knowledge and experience in financial and business
                matters as to be capable of evaluating the merits and risks of an
                investment in the First Units and that he or it is able to bear the
                economic risk of such investment for an indefinite period of time.
                The
                Purchaser is purchasing the Purchased Units for the Purchaser’s own
                account, for investment purposes only and not with a view to any
                resale or
                distribution thereof and the Purchaser does not have any contracts,
                understandings, agreements or arrangements with any person or entity
                to
                sell, transfer or grant a participation interest with respect to
                any of
                the Purchased Units;

            

    

    

    (d) if
      the
      Purchaser is a resident of a jurisdiction other than Canada, the Purchaser
      hereby represents and warrants to the Corporation as follows, such
      representations and warranties to survive the Purchaser's purchase of the
      Purchased Units:

    

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (1) If
      a
      natural person, the Purchaser is: a bona fide resident of the state set forth
      on
      the signature page of this Subscription Agreement as the home address of such
      Purchaser; over 21 years of age; and legally competent to execute this
      Subscription Agreement and to carry out his obligations hereunder and thereunder
      in accordance with the terms and provisions hereof and thereof. If an entity,
      the Purchaser has full power and authority to execute and deliver this
      Subscription Agreement and to carry out its obligations hereunder and thereunder
      in accordance with the terms and provisions hereof and thereof; and the
      execution, delivery and performance of this Subscription Agreement and the
      consummation of the transactions contemplated hereby and thereby have been
      duly
      authorized by all requisite corporate or other necessary action on the part
      of
      the Purchaser.

    

    (2) This
      Subscription Agreement constitutes a valid and legally binding obligation of
      the
      Purchaser, enforceable against the Purchaser in accordance with its terms,
      except as enforceability may be limited by bankruptcy, insolvency,
      reorganization and other similar laws now or hereafter in effect relating to
      creditors' rights generally.

    

    (3) The
      execution, delivery and performance by the Purchaser of this Subscription
      Agreement and the transactions contemplated hereby will not constitute a breach
      of any term or provision of, or a default under, (i) any outstanding indenture,
      mortgage, loan agreement or other similar contract or agreement to which the
      Purchaser or any of the Purchaser's affiliates is a party or by which the
      Purchaser or any such affiliate or its or their property is bound, (ii) if
      the
      Purchaser is a corporation or other legal entity, its certificate or articles
      of
      incorporation or by-laws or other constituent documents, (iii) any law, rule
      or
      regulation, or (iv) any order, writ, judgment or decree having applicability
      to
      it.

    

    (4) No
      consent, license, approval or authorization of any governmental body, authority,
      bureau or agency is required on the part of the Purchaser or any of the
      Purchaser's affiliates in connection with the execution, delivery and
      performance of this Subscription Agreement or the consummation of the
      transactions contemplated hereby.

    

    (5) The
      Purchaser has received all other materials relating to the Corporation, the
      terms and conditions of the offering and any other matters relating to the
      offering which the Purchaser has requested. The Purchaser has had the
      opportunity to ask questions of representatives of the Corporation concerning
      the finances, operations, business and prospects of the Corporation, and the
      Corporation has answered all inquiries that the Purchaser or his or her
      representatives have put to it relating to such matters and the offering.

    

    (6) 
      The
      Purchaser has such knowledge and experience in finance, securities, investments
      and other business matters so as to be able to protect his interests in
      connection with this transaction, and his investment in the Corporation is
      not
      material when compared to his total financial capacity.

    

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (7) The
      Purchaser understands the various risks of an investment in the Corporation
      and
      can afford to bear such risks, including, but not limited to, the risks of
      losing his entire investment. The Purchaser is aware that the purchase of the
      Purchased Units is a speculative investment involving a high degree of risk
      and
      that there is no guarantee that the Purchaser will realize any gain from this
      investment, and that the Purchaser could lose the total amount of the
      Subscriber's investment. 

    

    (8) The
      Purchaser has no need for liquidity of his investment in the Corporation and
      can
      afford to hold the Purchased Units(s) for which he has subscribed for a
      substantial period of time.

    

    (9) The
      Purchaser is fully aware that an investment in the Corporation involves
      significant risks which he may have to bear for an indefinite period of time
      because the Purchased Units have not been registered under the Securities Act
      of
      1933 (the "33 Act") or under the securities laws of any state and, therefore,
      cannot be resold unless they are subsequently so registered or an exemption
      from
      such registration is available and he is acquiring the Purchased Units for
      investment and not with a view to resale or distribution thereof.

    

    (10) The
      Purchaser qualifies as an “Accredited Investor” as that term is defined in
      Section 501(a) of Regulation D promulgated under the 33 Act. The Purchaser
      acknowledges that it has such knowledge and experience in financial and business
      matters that it is capable of evaluating the merits and risks of making an
      investment in the Corporation.

    

    (11) The
      Purchaser understands that the Purchased Units are being offered and sold under
      an exemption from registration provided for in Regulation D promulgated under
      Section 4(2) of the 33 Act and under similar exemption under certain state
      securities laws, and that this transaction has not been reviewed by, passed
      on
      or submitted to any federal or state agency or self-regulatory organization
      where an exemption is being relied upon.

    

    (12) The
      First
      Units hereby subscribed for will be acquired by the Purchaser for his own
      account (or, if the Purchaser is a natural person, for the account of such
      natural person and his spouse either in joint tenancy, tenancy by the entirety
      or tenancy in common), for investment and not with a view to the distribution
      thereof.

    

    (13) the
      Purchaser (A) will not sell or otherwise dispose of the Purchased Units or
      the
      Warrant Shares, except in accordance with applicable Canadian and US securities
      laws; and (B) if the Purchaser sells or otherwise disposes of the Purchased
      Units or the Warrant Shares to a person other than a resident of Canada during
      the period referred to herein, such person covenants to obtain from such
      purchaser a covenant as provided for herein and the Corporation shall have
      no
      obligation to register any purported sale or disposition in violation of this
      Subscription Agreement and any such sale or disposition shall be null and void
      and of no further force and effect;

    

    
      
         

      

      
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              (f)

            	
              as
                the Purchased Units are subject to resale restrictions under applicable
                Canadian provincial and US securities legislation and may be subject
                to
                the securities legislation of any other jurisdiction in which the
                Purchaser resides, the Purchaser shall comply with all relevant securities
                legislation concerning any resale of the Purchased Units (and the
                Corporation is not in any way responsible for such compliance) and
                shall
                consult with his or its own legal advisors with respect to such
                compliance. The Purchaser understands and agrees that the certificates
                evidencing the Purchased Units will bear an appropriate legend evidencing
                the restricted nature of the First
                Units;

            

    

    

    
      	
              (g)

            	
              the
                Purchaser will execute and deliver within the applicable time periods
                all
                documentation as may be required by applicable Canadian and US securities
                legislation, regulations, rules and policies to permit the purchase
                of the
                Purchased Units on the terms herein set
                forth;

            

    

    

    
      	
              (h)

            	
              if
                required by applicable securities legislation, policy or order of a
                securities regulatory authority, stock exchange or other regulatory
                authority, the Purchaser will execute, deliver, file and otherwise
                assist
                the Corporation in filing such reports, undertakings and other documents
                with respect to the issuance of the Purchased Units as may be
                required;

            

    

    

    
      	(i)	
              the
                Purchaser is not a "control person" of the Corporation as defined
                in the
                Securities
                Act
                (Ontario) and the corresponding provision of the applicable securities
                legislation of the other provinces of Canada and will not become
                a
                “control person” of the Corporation by virtue of the acquisition of the
                Purchased Units subscribed for pursuant to this agreement and does
                not
                intend to act in concert with any other person to form a control
                group;

            

    

    

    
      	
              (j)

            	
              the
                Purchaser is capable of assessing the proposed investment as a result
                of
                the Purchaser’s financial or investment experience or as a result of
                advice received from a registered person other than the Corporation
                or an
                affiliate thereof, and is able to bear the economic loss of its
                investment;

            

    

    

    
      	
              (k)

            	
              the
                Purchaser acknowledges that the investment in the securities of the
                Corporation may have tax consequences to the Purchaser under applicable
                law, which the Purchaser is solely responsible for determining. The
                Purchaser acknowledges and agrees that the Purchaser is responsible
                for
                obtaining his or its own legal and tax advice;

            

    

    

    
      	(l)	
              no
                person has made any written or oral representation to the
                Purchaser:

            

    

    

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    
      	
            	(i)	
              that
                any person will resell or repurchase the Purchased
                Units;

            

    

    

    
      	
            	(ii)	
              that
                any person will refund the purchase price of the Purchased Units
                other
                than as provided in this Subscription Agreement;
                

            

    

    

    
      	
            	(iii)	
              relating
                to the future price or value of the Purchased Units;
                or

            

    

    

    
      	
            	(iv)	
              that
                the Common Shares will be listed and posted for trading on a stock
                exchange or that application has been made to list and post the Common
                Shares for trading on a stock
                exchange.

            

    

    

    9. Representations
      and Warranties of the Corporation

    

    The
      Corporation hereby represents and warrants and covenants to the Corporation,
      and
      acknowledges that the Purchaser is relying on such representations and
      warranties in agreeing to purchase the Purchased Units, that:

    

    
      	 	
              (a)
                

            	
              the
                Corporation has been duly incorporated and organized and validly
                subsists
                under the laws of the jurisdiction of its incorporation, and has
                all
                requisite power and authority, as the case may be, to, and is qualified
                to, carry on its business as now conducted and to own or lease its
                properties and assets in all jurisdictions in which it currently
                carries
                on business and/or owns or leases its properties and assets and the
                Corporation has all requisite power and authority to execute and
                deliver
                the Subscription Agreement, the Registration Rights Agreement and
                to
                perform its obligations hereunder and
                thereunder;

            

    

    

    
      	 	
              (b)
                

            	
              the
                Corporation has conducted and is conducting its business in compliance
                in
                all material respects, with all applicable laws, statutes, by-laws,
                rules
                and regulations of each jurisdiction in which its business is carried
                on
                and holds all material licenses, registrations, permits, consents
                or
                qualifications required in order to enable its business to be carried
                on
                as now conducted, and all such licenses, registrations, permits,
                consents
                and qualifications are valid and subsisting and in good standing
                in all
                respects;

            

    

    

    
      	 	
              (c)

            	
              the
                Corporation has not committed an act of bankruptcy or is insolvent,
                has
                proposed a compromise or arrangement to its creditors generally,
                has had a
                petition for a receiving order in bankruptcy filed against it, has
                made a
                voluntary assignment in bankruptcy, has taken any proceedings with
                respect
                to a compromise or arrangement, has taken any proceedings to have
                itself
                declared bankrupt, wound-up or dissolved, has taken any proceedings
                to
                have a receiver appointed to any of its property or has had any execution
                or distress become enforceable or become levied upon any of its
                properties;

            

    

    

    
      	 	
              (d)
                

            	
              the
                authorized capital of the Corporation consists of an unlimited number
                of
                Common Shares and, as at the date of the hereof the number of shares
                of
                Common Stock reflected in the Corporation's most recent SEC filings
                reflects the number of shares of Common Stock currently issued and
                outstanding as fully paid and
                non-assessable;

            

    

    

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    
      	 	
              (e)
                

            	
              there
                is not any other instrument or document to which the Corporation
                is a
                party or by which it is bound, and which imposes restriction upon,
                or
                impediment to, the declaration or payment of dividends by the
                Corporation;

            

    

    

    
      	 	
              (f)
                

            	
              the
                execution and delivery of this Subscription Agreement and the Registration
                Rights Agreement and the performance of the transaction contemplated
                hereunder and thereunder, the issuance of the First Units at the
                Closing
                Time, and compliance by the Corporation with the other provisions
                of this
                Subscription Agreement to be complied with by it, will not at the
                Closing
                Time:

            

    

    

    
      	 	
              (i)
                

            	
              create
                a state of facts which, after notice or lapse of time or both, will
                result
                in a breach of or default under, and will not conflict
                with:

            

    

    

    
      	 	
              (A)
                

            	
              any
                of the terms, conditions or provisions of the articles, by-laws or
                resolutions of the shareholders, directors or any committee of directors
                of the Corporation or any indenture, agreement or instrument to which
                the
                Corporation is a party or by which it or they are contractually bound;
                or

            

    

    

    
      	 	
              (B)

            	
              any
                statute, rule, regulation, by-law or law applicable to the Corporation
                ,
                including, without limitation, Canadian Securities Laws, or any judgment,
                order or decree of any governmental body, agency or court having
                jurisdiction over the Corporation ;
                or

            

    

    

    
      	 	
              (ii)
                

            	
              give
                rise to any lien, charge or claim in or with respect to the properties
                or
                assets now owned or hereafter acquired by the Corporation or the
                acceleration of or the maturity of any debt or other obligation under
                any
                indenture, mortgage, lease, agreement or instrument binding or affecting
                any of them or any of their
                properties;

            

    

    

    
      	 	
              (g)

            	
              Each
                of this Subscription Agreement and the Registration Rights Agreement
                has
                been or will be upon the execution thereof, duly authorized, executed
                and
                delivered by the Corporation and constitutes or will constitute when
                executed, a legal, valid and binding obligation of the Corporation
                enforceable against it in accordance with its respective terms, except
                that: (i) the enforcement thereof may be limited by bankruptcy, insolvency
                and other laws affecting the enforcement of creditors' rights generally;
                (ii) rights of indemnity, contribution and waiver of contribution
                thereunder may be limited under applicable law; and (iii) equitable
                remedies, including, without limitation, specific performance and
                injunctive relief, may be granted only in the discretion of a court
                of
                competent jurisdiction;

            

    

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    
      	 	
              (h)
                

            	
              upon
                completion of all of the transactions contemplated in this Agreement:
                (i)
                the Common Shares and Warrants comprising the First Units, and the
                Warrant
                Shares upon exercise of the Warrants, will have been validly authorized
                and issued by the Corporation; (ii) the Common Shares, and the Warrant
                Shares upon exercise of the Warrants, will be duly issued as fully
                paid
                and non-assessable and none of such securities will have been issued
                in
                violation of or subject to any pre-emptive rights or other contractual
                rights to purchase securities issued by the Corporation;
                and

            

    

    

    
      	 	
              (i)

            	
              the
                Corporation is the legal and beneficial owner of, has good and marketable
                title to, and possesses all of the assets material to its business
                free
                and clear of any encumbrances (other than leased equipment used in
                the
                ordinary course of business).

            

    

    

    10. Prior
      Agreement

    

    This
      Agreement sets forth all of the terms, conditions and agreements of the parties
      relating to the subject matter hereof and supersedes any and all prior
      agreements.

    

    11. Restricted
      Rights of Action 

    

    The
      Purchased Units are being purchased pursuant to an exemption from the
      requirement to prepare and file, and provide the Purchaser with a prospectus
      under applicable securities legislation and the Purchaser is aware that as
      a
      consequence:

    

    
      	 	
              (a)

            	
              the
                Purchaser is restricted from using most of the civil remedies available
                under applicable securities
                legislation;

            

    

     

    
      	 	
              (b)

            	
              no
                securities commission or similar regulatory authority has reviewed
                or
                passed on the merits of the
                Offering;

            

    

     

    
      	 	
              (c)

            	
              there
                are risks associated with the purchase of the Purchased
                Units;

            

    

     

    
      	 	
              (d)

            	
              the
                Purchaser may not receive information that would otherwise be required
                to
                be provided to the Purchaser under applicable securities legislation;
                and
                

            

    

     

    
      	 	
              (e)

            	
              the
                Corporation is relieved from certain obligations that would otherwise
                apply under applicable securities legislation;

            

    

    

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    12. Costs

    

    The
      Purchaser acknowledges and agrees that all costs and expenses incurred by the
      Purchaser (including any fees and disbursements of any special counsel retained
      by the Purchaser) relating to the sale of the Purchased Units to the Purchaser
      shall be borne by the Purchaser. The Corporation acknowledges and agrees that
      all costs and expenses incurred by the Corporation (including any fees and
      disbursements of any counsel retained by the Corporation) relating to the sale
      of the Purchased Units to the Purchasers shall be borne by the
      Corporation.

    

    13. Governing
      Law

    

    This
      Subscription Agreement is governed by the laws of the Province of Ontario and
      the federal laws of Canada applicable therein. The Purchaser, in his personal
      or
      its corporate capacity, as the case may be, and, if applicable, on behalf of
      each beneficial purchaser for whom the Purchaser is acting, irrevocably attorns
      to the jurisdiction of the courts of the Province of Ontario.

    

    14. Survival

    

    All
      warranties, representations, covenants and agreements herein contained or
      contained in any documents submitted pursuant to this Agreement and in
      connection with the transactions herein contemplated shall survive the Closing
      and continue in full force and effect for the benefit of the Purchaser and
      the
      Corporation for a period of two years from the Closing Date and shall not be
      limited or prejudiced by any investigation made by or on behalf of the Purchaser
      or the Corporation in connection with transactions herein contemplated or
      otherwise.

    

    15. Assignment

    

    This
      Subscription Agreement is not transferable or assignable by the parties
      hereto.

    16. Counterparts

    

    This
      Subscription Agreement may be executed in counterparts and delivered via
      facsimile transmission, each of which shall be deemed to be an original and
      all
      of which shall constitute one and the same document.

    

    17. English
      Language

    

    We,
      the
      undersigned, hereby acknowledge that we have consented and requested that all
      documents evidencing or relating in any way to the sale of the First Units
      be
      drawn up in the English language only.

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    18. Severability

    

    In
      the
      event that any provision of this Subscription Agreement is deemed to be void
      or
      unenforceable in whole or in part, it shall be deemed not to affect or impair
      the validity of any other provision of this Subscription Agreement and such
      void
      or unenforceable provision shall be severable from this Subscription
      Agreement.

    

    19. Modification

    

    Neither
      this Subscription Agreement nor any provision hereof shall be modified, changed,
      discharged or terminated except by an instrument in writing signed by the party
      against whom any waiver, change, discharge or termination is
      sought.

    

    20. No
      Revocation

    

    The
      Purchaser, on its own behalf and, if applicable, on behalf of others from whom
      he or it is contracting hereunder, agrees that this offer is made for valuable
      consideration and may not be withdrawn, cancelled, terminated or revoked by
      the
      Purchaser.

    

    21. Time
      of the Essence

    

    Time
      shall, in all respects, be of the essence hereof.

    

    22. Headings

    

    The
      headings contained herein are for convenience only and shall not affect the
      meaning or interpretation hereof.

    

    23. Singular
      and Plural, etc.

    

    Where
      the
      context so requires, words importing the singular number include the plural
      and
      vice versa, and words importing gender shall include the masculine, feminine
      and
      neutral genders.

    

    24. Subscription
      Particulars

    

    Subscription.
      The
      aggregate number of the First Units being subscribed for is_____ at a price
      equal to US$0.60 per First Unit, the aggregate price of the First Units being
      subscribed for is $_____.

    

    Registration.
      The
      First Units are to be registered in the name of:

    

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    Delivery.
      The
      certificates representing the First Units are to be delivered to:

     

     

    (name)

    
      
        

      

    

     

    (address)

    
      

    

    

      
(contact
      name and number)

    

    
      	 	
              DATED
                as
                of the ___ day of _________, 200_.

            

    

    

     

     

    
      	 	
               

              
                
Name
                of Purchaser (please type or
                print)

            
	 	
               

               

              
                

              

              (Signature of
                Purchaser)

            

    

     

     

    
      	 	
              
                

              

              (Address
                of Purchaser)

               

              
                
 

              
                

              

            

    

     

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

     

    25. Acceptance

    

    The
      Corporation hereby accepts the above-mentioned offer to purchase First
      Units.

    

    

    DATED
      as of
      this ___ day of ________, 200_.

    

    
      	 	 	 
	 	MICROMEM TECHNOLOGIES
              INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
              
Authorized
              Signing Officer
	 	 

    

     

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
SCHEDULE
      I

     

    CERTIFICATE
      OF ONTARIO SUBSCRIBER

    

    
      	To:	
              Micromem
                Technologies Inc. (the
                "Corporation")

            

    

     

    In
      addition to the representations and warranties set forth in the Subscription
      for
      Units of the Corporation to which this Certificate is attached, the Subscriber
      certifies to the Corporation and ___ (and acknowledges that the Corporation
      and
      ___ are relying thereon) that the Subscriber satisfies (or if the Subscriber
      is
      purchasing as agent for the beneficial purchaser named under "Subscription
      Particulars" in the Subscription Agreement, such beneficial purchaser satisfies)
      one or more of the categories of "accredited investor", as defined by Ontario
      Securities Commission Rule 45-501 in force in the Province of Ontario because
      the Subscriber is (please place an "X" on the appropriate line):

    

    (a)
       ______ a
      bank
      listed in Schedule I or II of the Bank Act(Canada), or an authorized foreign
      bank listed in Schedule III of that Act;

    

    (b)
       ______ the
      Business Development Bank incorporated under the Business Development Bank
      Act
      (Canada);

    

    (c)
       ______ a
      loan
      corporation or trust corporation registered under the Loan and Trust
      Corporations Act or under the Trust and Loan Companies Act (Canada), or under
      comparable legislation in any other jurisdiction;

    

    (d)
       ______ a
      co-operative credit society, credit union central, federation of caisses
      populaires, credit union or league, or regional caisse populaire, or an
      association under the Cooperative Credit Associations Act (Canada), in each
      case, located in Canada;

    

    (e)
       ______ a
      company
      licensed to do business as an insurance company in any jurisdiction;

    

    (f)
       ______ a
      subsidiary of any company referred to in paragraph (a), (b), (c), (d) or (e),
      where the company owns all of the voting shares of the subsidiary;

    

    (g)
       ______ a
      person
      or company registered under the Act or securities legislation in another
      jurisdiction as an adviser or dealer, other than a limited market
      dealer;

    

    (h)
       ______ the
      government of Canada or of any jurisdiction, or any crown corporation,
      instrumentality or agency of a Canadian federal, provincial or territorial
      government;

    

    (i)
       ______ any
      Canadian municipality or any Canadian provincial or territorial capital city;
      

    

    (j)
       ______ any
      national, federal, state, provincial, territorial or municipal government of
      or
      in any foreign jurisdiction, or any instrumentality or agency
      thereof;

    

    (k)
       ______ a
      pension
      fund that is regulated by either the Office of the Superintendent of Financial
      Institutions (Canada) or a provincial pension commission or similar regulatory
      authority;

    

    (l)
       ______ a
      registered charity under the Income Tax Act (Canada);

    

    (m)
       ______ an
      individual who beneficially owns, or who together with a spouse beneficially
      own, financial assets having an aggregate realizable value that, before taxes
      but net of any related liabilities, exceeds $1,000,000;

    

    (n)
       ______ an
      individual whose net income before taxes exceeded $200,000 in each of the two
      most recent years or whose net income before taxes combined with that of a
      spouse exceeded $300,000 in each of those years and who, in either case, has
      a
      reasonable expectation of exceeding the same net income level in the current
      year;

    

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    (o)
       ______ an
      individual who has been granted registration under the Act or securities
      legislation in another jurisdiction as a representative of a person or company
      referred to in paragraph (g), whether or not the individual’s registration is
      still in effect;

    

    (p)
       ______ a
      promoter of the issuer or an affiliated entity of a promoter of the issuer;
      

    

    (q)
       ______ a
      spouse,
      parent, grandparent or child of an officer, director or promoter of the
      issuer;

    

    (r)
       ______ a
      person
      or company that, in relation to the issuer, is an affiliated entity or a person
      or company referred to in clause (c) of the definition of distribution in
      subsection 1(1) of the Act;

    

    (s)
       ______ an
      issuer
      that is acquiring securities of its own issue;

    

    (t)
       ______ a
      company, limited partnership, limited liability partnership, trust or estate,
      other than a mutual fund or non-redeemable investment fund, that had net assets
      of at least $5,000,000 as reflected in its most recently prepared financial
      statements; 

    

    (u)
       ______ a
      person
      or company that is recognized by the Commission as an accredited
      investor;

    

    (v)
       ______ a
      mutual
      fund or non-redeemable investment fund that, in Ontario, distributes its
      securities only to persons or companies that are accredited
      investors;

    

    (w)
       ______ a
      mutual
      fund or non-redeemable investment fund that, in Ontario, distributes its
      securities under a prospectus for which a receipt has been granted by the
      Director;

    

    (x)
       ______ a
      managed
      account if it is acquiring a security that is not a security of a mutual fund
      or
      non-redeemable investment fund;

    

    (y)
       ______ an
      account that is fully managed by a trust corporation registered under the Loan
      and Trust Corporations Act; 

    

    (z)
       ______ an
      entity
      organized outside of Canada that is analogous to any of the entities referred
      to
      in paragraphs (a) through (g) and paragraph (k) in form and function; and

    

    (aa)
       ______ a
      person
      or company in respect of which all of the owners of interests, direct or
      indirect, legal or beneficial, are persons or companies that are accredited
      investors.

    

    Dated
      this ____ day of ____________, ______

    _____________________________________________

    Name
      of
      Subscriber (Please Print)

    

    _____________________________________________

    Signature
      of Subscriber or Authorized Representative

    

    _____________________________________________

    Official
      Capacity of person signing if other than the Subscriber

    

    _____________________________________________

    Name
      of
      Person Signing if other than the Subscriber (Please Print)

     

    
      
         

      

      
        17REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (the “Agreement”) is made and entered into as of
      this ___ day of _________, 200_, by and among Micromem Technologies, Inc.,
      an
      Ontario Canada corporation (the “Company”), and the investors set forth on the
      signature pages hereto (the “Investors”).

    

    The
      parties hereby agree as follows:

    

    1. Certain
      Definitions.

    

    As
      used
      in this Agreement, the following terms shall have the following
      meanings:

    

    “Affiliate”
means,
      with respect to any person, any other person which directly or indirectly
      controls, is controlled by, or is under common control with, such
      person.

    

    “Business
      Day”
means
      a
      day, other than a Saturday or Sunday, on which banks in Ontario, Canada are
      open
      for the general transaction of business.

    

    “Common
      Stock”
shall
      mean the Company’s common stock, without par value, and any securities into
      which such shares may hereinafter be reclassified.

    

    “Investors”
shall
      mean the Investors and any Affiliate or permitted transferee of any Investor
      who
      is a subsequent holder of any Warrants or Registrable Securities.

    

    “Prospectus”
shall
      mean the prospectus included in any Registration Statement, as amended or
      supplemented by any prospectus supplement, with respect to the terms of the
      offering of any portion of the Registrable Securities covered by such
      Registration Statement and by all other amendments and supplements to the
      prospectus, including post-effective amendments and all material incorporated
      by
      reference in such prospectus.

    

    “Purchase
      Agreements”
shall
      mean the purchase and subscription agreements entered into among the Company
      and
      the Investors.

    

    “Register,”
      “registered”
and
      “registration”
refer
      to a registration made by preparing and filing a Registration Statement or
      similar document in compliance with the 1933 Act (as defined below), and the
      declaration or ordering of effectiveness of such Registration Statement or
      document.

    

    “Registrable
      Securities”
shall
      mean the Shares issued pursuant to the Purchase Agreements as well as all of
      the
      Shares issuable (i) upon the exercise of the Warrants if any, and (ii) any
      other
      securities issued or issuable with respect to or in exchange for Registrable
      Securities or otherwise purchased under the Purchase Agreements; provided,
      that,
      a security shall cease to be a Registrable Security upon (A) sale pursuant
      to a
      Registration Statement or Rule 144 under the 1933 Act, or (B) such security
      becoming eligible for sale by the Investors pursuant to Rule
      144(k).

    

    “Registration
      Statement”
shall
      mean any registration statement of the Company filed under the 1933 Act that
      covers the resale of any of the Registrable Securities pursuant to the
      provisions of this Agreement, amendments and supplements to such Registration
      Statement, including post-effective amendments, all exhibits and all material
      incorporated by reference in such Registration Statement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Required
      Investors”
means
      the Investors holding a majority of the Registrable Securities.

    

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

    

    “Shares”
means
      the shares of Common Stock issued pursuant to the Purchase
      Agreements.

    

    “1933
      Act”
means
      the Securities Act of 1933, as amended, and the rules and regulations
      promulgated thereunder.

    

    “1934
      Act”
means
      the Securities Exchange Act of 1934, as amended, and the rules and regulations
      promulgated thereunder.

    

    “Warrants”
means,
      any and all warrants issued to Investors pursuant to the Purchase Agreements
      to
      purchase shares of Common Stock, including further warrants issued upon the
      exercise of other Warrants. 

    

    “Warrant
      Shares”
means
      the Shares issuable upon the exercise of the Warrants.

    
      2. Registration.

      

      (a)  Registration
        Statements.
        Promptly following the closing of the purchase and sale of the securities
        contemplated by the Purchase Agreements (the “Closing Date”), the Company shall
        prepare and file with the SEC one Registration Statement on Form F-1 or on
        such
        other available form, covering the resale of the Registrable Securities in
        an
        amount at least equal to the number of Shares plus the number of shares of
        Common Stock necessary to permit the exercise in full of the Warrants. Such
        Registration Statement shall include the plan of distribution attached hereto
        as
Exhibit
        A.
        Such
        Registration Statement also shall cover, to the extent allowable under the
        1933
        Act and the rules promulgated thereunder (including Rule 416), such
        indeterminate number of additional shares of Common Stock resulting from
        stock
        splits, stock dividends or similar transactions with respect to the Registrable
        Securities. The Company shall include in the Registration Statement only
        the
        Registrable Securities and those securities set forth in Schedule
        2(a)
        annexed
        hereto. The Registration Statement (and each amendment or supplement thereto,
        and each request for acceleration of effectiveness thereof) shall be provided
        in
        accordance with Section 3(c) to the Investors and their counsel prior to
        its
        filing or other submission. 

      

      (b)  Expenses.
        The
        Company will pay all expenses associated with each registration, including
        filing and printing fees, the Company’s counsel and accounting fees and
        expenses, costs associated with clearing the Registrable Securities for sale
        under applicable state securities laws, listing fees and the Investors’
reasonable expenses in connection with the registration, but excluding fees
        and
        expenses of counsel to the Investors, discounts, commissions, fees of
        underwriters, selling brokers, dealer managers or similar securities industry
        professionals with respect to the Registrable Securities being
        sold.

      

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      (c)  Effectiveness.

      

      (i) The
        Company shall use commercially reasonable efforts to have the Registration
        Statement declared effective as soon as practicable. The Company shall notify
        the Investors by facsimile or e-mail as promptly as practicable, and in any
        event, within twenty-four (24) hours, after any Registration Statement is
        declared effective and shall simultaneously provide the Investors with copies
        of
        any related Prospectus to be used in connection with the sale or other
        disposition of the securities covered thereby. 

      

      (ii) For
        not
        more than twenty (20) consecutive days or for a total of not more than
        forty-five (45) days in any twelve (12) month period, the Company may delay
        the
        disclosure of material non-public information concerning the Company, by
        suspending the use of any Prospectus included in any registration contemplated
        by this Section containing such information, the disclosure of which at the
        time
        is not, in the good faith opinion of the Company, in the best interests of
        the
        Company (an “Allowed Delay”); provided, that the Company shall promptly (a)
        notify the Investors in writing of the existence of (but in no event, without
        the prior written consent of an Investor, shall the Company disclose to such
        Investor any of the facts or circumstances regarding) material non-public
        information giving rise to an Allowed Delay, (b) advise the Investors in
        writing
        to cease all sales under the Registration Statement until the end of the
        Allowed
        Delay and (c) use commercially reasonable efforts to terminate an Allowed
        Delay
        as promptly as practicable.

      

      (d)  Underwritten
        Offering.
        If any
        offering pursuant to a Registration Statement pursuant to Section 2(a) hereof
        involves an underwritten offering, the Company shall have the right to select
        an
        investment banker and manager to administer the offering, which investment
        banker or manager shall be reasonably satisfactory to the Required
        Investors.

      

      3. Company
        Obligations.
        The
        Company will use commercially reasonable efforts to effect the registration
        of
        the Registrable Securities in accordance with the terms hereof, and pursuant
        thereto the Company will, as expeditiously as possible:

      

      (a)  use
        commercially reasonable efforts to cause such Registration Statement to become
        effective and to remain continuously effective for a period that will terminate
        upon the earliest of (i) two years from the initial effectiveness date of
        the
        Registration Statement, (ii) the date on which all Registrable Securities
        covered by such Registration Statement as amended from time to time, have
        been
        sold, and (iii) the date on which all Registrable Securities covered by such
        Registration Statement may be sold pursuant to Rule 144(k) (the “Effectiveness
        Period”) and advise the Investors in writing when the Effectiveness Period has
        expired;

      

      (b)  prepare
        and file with the SEC such amendments and post-effective amendments to the
        Registration Statement and the Prospectus as may be necessary to keep the
        Registration Statement effective for the period specified in Section 3(a)
        and to
        comply with the provisions of the 1933 Act and the 1934 Act with respect
        to the
        distribution of all of the Registrable Securities covered thereby;

      

      (c)  provide
        copies to and permit counsel designated by the Investors to review each
        Registration Statement and all amendments and supplements thereto no fewer
        than
        seven (7) days prior to their filing with the SEC and not file any document
        to
        which such counsel reasonably objects;

      

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

      (d)  furnish
        to the Investors and their legal counsel (i) promptly after the same is prepared
        and publicly distributed, filed with the SEC, or received by the Company
        (but
        not later than two (2) Business Days after the filing date, receipt date
        or
        sending date, as the case may be) one (1) copy of any Registration Statement
        and
        any amendment thereto, each preliminary prospectus and Prospectus and each
        amendment or supplement thereto, and each letter written by or on behalf
        of the
        Company to the SEC or the staff of the SEC, and each item of correspondence
        from
        the SEC or the staff of the SEC, in each case relating to such Registration
        Statement (other than any portion of any thereof which contains information
        for
        which the Company has sought confidential treatment), and (ii) such number
        of
        copies of a Prospectus, including a preliminary prospectus, and all amendments
        and supplements thereto and such other documents as each Investor may reasonably
        request in order to facilitate the disposition of the Registrable Securities
        owned by such Investor that are covered by the related Registration
        Statement;

      

      (e)  in
        the
        event the Company selects an underwriter for the offering, the Company shall
        enter into and perform its reasonable obligations under an underwriting
        agreement, in usual and customary form, including, without limitation, customary
        indemnification and contribution obligations, with the underwriter of such
        offering; 

      

      (f)  if
        required by the underwriter, or if any Investor is described in the Registration
        Statement as an underwriter, the Company shall furnish, on the effective
        date of
        the Registration Statement (except with respect to clause (i) below) and
        on the
        date that Registrable Securities are delivered to an underwriter, if any,
        for
        sale in connection with the Registration Statement (including any Investor
        deemed to be an underwriter), (i) (A) in the case of an underwritten offering,
        an opinion, dated as of the closing date of the sale of Registrable Securities
        to the underwriters, from independent legal counsel representing the Company
        for
        purposes of such Registration Statement, in form, scope and substance as
        is
        customarily given in an underwritten public offering, addressed to the
        underwriters and the Investors participating in such underwritten offering
        or
        (B) in the case of an “at the market” offering, an opinion, dated as of or
        promptly after the effective date of the Registration Statement to the
        Investors, from independent legal counsel representing the Company for purposes
        of such Registration Statement, in form, scope and substance as is customarily
        given in a public offering, addressed to the Investors, and (ii) a letter,
        dated
        as of the effective date of such Registration Statement and confirmed as
        of the
        applicable dates described above, from the Company’s independent certified
        public accountants in form and substance as is customarily given by independent
        certified public accountants to underwriters in an underwritten public offering,
        addressed to the underwriters (including any Investor deemed to be an
        underwriter);

      

      (g)  use
        commercially reasonable efforts to (i) prevent the issuance of any stop order
        or
        other suspension of effectiveness and, (ii) if such order is issued, obtain
        the
        withdrawal of any such order at the earliest possible moment;

      

      (h)  prior
        to
        any public offering of Registrable Securities, use commercially reasonable
        efforts to register or qualify or cooperate with the Investors and their
        counsel
        in connection with the registration or qualification of such Registrable
        Securities for offer and sale under the securities or blue sky laws of such
        jurisdictions requested by the Investors and do any and all other commercially
        reasonable acts or things necessary or advisable to enable the distribution
        in
        such jurisdictions of the Registrable Securities covered by the Registration
        Statement;
        provided, however, that the Company shall not be required in connection
        therewith or as a condition thereto to (i) qualify to do business in any
        jurisdiction where it would not otherwise be required to qualify but for
        this
        Section 3(h), (ii) subject itself to general taxation in any jurisdiction
        where
        it would not otherwise be so subject but for this Section 3(h), or (iii)
        file a
        general consent to service of process in any such jurisdiction;

      

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      (i)  use
        commercially reasonable efforts to cause all Registrable Securities covered
        by a
        Registration Statement to be listed on each securities exchange, interdealer
        quotation system or other market on which similar securities issued by the
        Company are then listed;

      

      (j)  immediately
        notify the Investors, at any time when a Prospectus relating to Registrable
        Securities is required to be delivered under the 1933 Act, upon discovery
        that,
        or upon the happening of any event as a result of which, the Prospectus included
        in a Registration Statement, as then in effect, includes an untrue statement
        of
        a material fact or omits to state any material fact required to be stated
        therein or necessary to make the statements therein not misleading in light
        of
        the circumstances then existing, and at the request of any such holder, promptly
        prepare and furnish to such holder a reasonable number of copies of a supplement
        to or an amendment of such Prospectus as may be necessary so that, as thereafter
        delivered to the purchasers of such Registrable Securities, such Prospectus
        shall not include an 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 not misleading in light of the circumstances then existing;
        and

      

      (k)  otherwise
        use commercially reasonable efforts to comply with all applicable rules and
        regulations of the SEC under the 1933 Act and the 1934 Act, take such other
        actions as may be reasonably necessary to facilitate the registration of
        the
        Registrable Securities hereunder; and make available to its security holders,
        as
        soon as reasonably practicable, but not later than the Availability Date
        (as
        defined below), an earnings statement covering a period of at least twelve
        (12)
        months, beginning after the effective date of each Registration Statement,
        which
        earnings statement shall satisfy the provisions of Section 11(a) of the 1933
        Act, including Rule 158 promulgated thereunder (for the purpose of this
        subsection 3(k), “Availability Date” means the 45th day following the end of the
        fourth fiscal quarter that includes the effective date of such Registration
        Statement, except that, if such fourth fiscal quarter is the last quarter
        of the
        Company’s fiscal year, “Availability Date” means the 90th day after the end of
        such fourth fiscal quarter).

      

      (l)  With
        a
        view to making available to the Investors the benefits of Rule 144 (or its
        successor rule) and any other rule or regulation of the SEC that may at any
        time
        permit the Investors to sell shares of Common Stock to the public without
        registration, the Company covenants and agrees to: (i) make and keep public
        information available, as those terms are understood and defined in Rule
        144,
        until the earlier of (A) six months after such date as all of the Registrable
        Securities may be resold pursuant to Rule 144(k) or any other rule of similar
        effect or (B) such date as all of the Registrable Securities shall have been
        resold; (ii) file with the SEC in a timely manner all reports and other
        documents required of the Company under the 1934 Act; and (iii) furnish to
        each
        Investor upon request, as long as such Investor owns any Registrable Securities,
        (A) a written statement by the Company that it has complied with the reporting
        requirements of the 1934 Act, (B) a copy of the Company’s most recent Annual
        Report on Form 20-F or Reports on Form 6-K, and (C) such other information
        as
        may be reasonably requested in order to avail such Investor of any rule or
        regulation of the SEC that permits the selling of any such Registrable
        Securities without registration.

      

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

      4. Due
        Diligence Review; Information.
        The
        Company shall make available, during normal business hours, for inspection
        and
        review by the Investors, advisors to and representatives of the Investors
        (who
        may or may not be affiliated with the Investors and who are reasonably
        acceptable to the Company), any underwriter participating in any disposition
        of
        shares of Common Stock on behalf of the Investors pursuant to a Registration
        Statement or amendments or supplements thereto or any blue sky, NASD or other
        filing, all financial and other records, all SEC Filings (as defined in the
        Purchase Agreement) and other filings with the SEC, and all other corporate
        documents and properties of the Company as may be reasonably necessary for
        the
        purpose of such review, and cause the Company’s officers, directors and
        employees, within a reasonable time period, to supply all such information
        reasonably requested by the Investors or any such representative, advisor
        or
        underwriter in connection with such Registration Statement (including, without
        limitation, in response to all questions and other inquiries reasonably made
        or
        submitted by any of them), prior to and from time to time after the filing
        and
        effectiveness of the Registration Statement for the sole purpose of enabling
        the
        Investors and such representatives, advisors and underwriters and their
        respective accountants and attorneys to conduct initial and ongoing due
        diligence with respect to the Company and the accuracy of such Registration
        Statement.

      

      The
        Company shall not disclose material nonpublic information to the Investors,
        or
        to advisors to or representatives of the Investors, unless prior to disclosure
        of such information the Company identifies such information as being material
        nonpublic information and provides the Investors, such advisors and
        representatives with the opportunity to accept or refuse to accept such material
        nonpublic information for review and any Investor wishing to obtain such
        information enters into an appropriate confidentiality agreement with the
        Company with respect thereto.

      

      5. Obligations
        of the Investors.

      

      (a)  Each
        Investor shall furnish in writing to the Company such information regarding
        itself, the Registrable Securities held by it and the intended method of
        disposition of the Registrable Securities held by it, as shall be reasonably
        required to effect the registration of such Registrable Securities and shall
        execute such documents in connection with such registration as the Company
        may
        reasonably request. At least five (5) Business Days prior to the first
        anticipated filing date of any Registration Statement, the Company shall
        notify
        each Investor of the information the Company requires from such Investor
        if such
        Investor elects to have any of the Registrable Securities included in the
        Registration Statement. An Investor shall provide such information to the
        Company at least two (2) Business Days prior to the first anticipated filing
        date of such Registration Statement if such Investor elects to have any of
        the
        Registrable Securities included in the Registration Statement.

      

      (b)  Each
        Investor, by its acceptance of the Registrable Securities agrees to cooperate
        with the Company as reasonably requested by the Company in connection with
        the
        preparation and filing of a Registration Statement hereunder, unless such
        Investor has notified the Company in writing of its election to exclude all
        of
        its Registrable Securities from such Registration Statement.

      

      (c)  In
        the
        event the Company, at the request of the Investors, determines to engage
        the
        services of an underwriter, such Investor agrees to enter into and perform
        its
        obligations under an underwriting agreement, in usual and customary form,
        including, without limitation, customary indemnification and contribution
        obligations, with the managing underwriter of such offering and take such
        other
        actions as are reasonably required in order to expedite or facilitate the
        dispositions of the Registrable Securities.

      

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

      (d)  Each
        Investor agrees that, upon receipt of any notice from the Company of either
        (i)
        the commencement of an Allowed Delay pursuant to Section 2(c)(ii) or (ii)
        the
        happening of an event pursuant to Section 3(j) hereof, such Investor will
        immediately discontinue disposition of Registrable Securities pursuant to
        the
        Registration Statement covering such Registrable Securities, until the
        Investor’s receipt of the copies of the supplemented or amended prospectus filed
        with the SEC and until any related post-effective amendment is declared
        effective and, if so directed by the Company, the Investor shall deliver
        to the
        Company (at the expense of the Company) or destroy (and deliver to the Company
        a
        certificate of destruction) all copies in the Investor’s possession of the
        Prospectus covering the Registrable Securities current at the time of receipt
        of
        such notice.

      

      (e)  No
        Investor may participate in any third party underwritten registration hereunder
        unless it (i) agrees to sell the Registrable Securities on the basis provided
        in
        any underwriting arrangements in usual and customary form entered into by
        the
        Company, (ii) completes and executes all questionnaires, powers of attorney,
        indemnities, underwriting agreements and other documents reasonably required
        under the terms of such underwriting arrangements, and (iii) agrees to pay
        its
        pro rata share of all underwriting discounts and commissions. Notwithstanding
        the foregoing, no Investor shall be required to make any representations
        to such
        underwriter, other than those with respect to itself and the Registrable
        Securities owned by it, including its right to sell the Registrable Securities,
        and any indemnification in favor of the underwriter by the Investors shall
        be
        several and not joint and limited in the case of any Investor, to the proceeds
        received by such Investor from the sale of its Registrable Securities. The
        scope
        of any such indemnification in favor of an underwriter shall be limited to
        the
        same extent as the indemnity provided in Section 6(b) hereof.

      

      6. Indemnification.

      

      (a)  Indemnification
        by the Company.
        The
        Company will indemnify and hold harmless each Investor and its officers,
        directors, members, employees and agents, successors and assigns, and each
        other
        person, if any, who controls such Investor within the meaning of the 1933
        Act,
        against any losses, claims, damages or liabilities, joint or several, to
        which
        they may become subject under the 1933 Act or otherwise, insofar as such
        losses,
        claims, damages or liabilities (or actions in respect thereof) arise out
        of or
        are based upon: (i) any untrue statement or alleged untrue statement of any
        material fact contained in any Registration Statement, any preliminary
        prospectus or final prospectus contained therein, or any amendment or supplement
        thereof; (ii) any blue sky application or other document executed by the
        Company
        specifically for that purpose or based upon written information furnished
        by the
        Company filed in any state or other jurisdiction in order to qualify any
        or all
        of the Registrable Securities under the securities laws thereof (any such
        application, document or information herein called a “Blue
        Sky
        Application”);
        (iii)
        the omission or alleged omission to state therein a material fact required
        to be
        stated therein or necessary to make the statements therein not misleading;
        (iv)
        any violation by the Company or its agents of any rule or regulation promulgated
        under the 1933 Act applicable to the Company or its agents and relating to
        action or inaction required of the Company in connection with such registration;
        or (v) any failure to register or qualify the Registrable Securities included
        in
        any such Registration in any state where the Company or its agents has
        affirmatively undertaken or agreed in writing that the Company will undertake
        such registration or qualification on an Investor’s behalf (the undertaking of
        any underwriter chosen by the Company being attributed to the Company) and
        will
        reimburse such Investor, and each such officer, director or member and each
        such
        controlling person for any legal or other expenses reasonably incurred by
        them
        in connection with investigating or defending any such loss, claim, damage,
        liability or action; provided,
        however,
        that
        the Company will not be liable in any such case if and to the extent that
        any
        such loss, claim, damage or liability arises out of or is based upon an untrue
        statement or alleged untrue statement or omission or alleged omission so
        made in
        conformity with information furnished by such Investor or any such controlling
        person in writing specifically for use in such Registration Statement or
        Prospectus.

      

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

      (b)  Indemnification
        by the Investors.
        In
        connection with any registration pursuant to the terms of this Agreement,
        each
        Investor will furnish to the Company in writing such information as the Company
        reasonably requests concerning the holders of Registrable Securities or the
        proposed manner of distribution for use in connection with any Registration
        Statement or Prospectus and agrees, severally but not jointly, to indemnify
        and
        hold harmless, to the fullest extent permitted by law, the Company, its
        directors, officers, employees, stockholders and each person who controls
        the
        Company (within the meaning of the 1933 Act) against any losses, claims,
        damages, liabilities and expense (including reasonable attorney fees) resulting
        from any untrue statement of a material fact or any omission of a material
        fact
        required to be stated in the Registration Statement or Prospectus or preliminary
        prospectus or amendment or supplement thereto or necessary to make the
        statements therein not misleading, to the extent, but only to the extent
        that
        such untrue statement or omission is contained in any information furnished
        in
        writing by such Investor to the Company specifically for inclusion in such
        Registration Statement or Prospectus or amendment or supplement thereto.
        In no
        event shall the liability of an Investor be greater in amount than the dollar
        amount of the proceeds (net of all expense paid by such Investor in connection
        with any claim relating to this Section 6 and the amount of any damages such
        Investor has otherwise been required to pay by reason of such untrue statement
        or omission) received by such Investor upon the sale of the Registrable
        Securities included in the Registration Statement giving rise to such
        indemnification obligation.

      

      (c)  Conduct
        of Indemnification Proceedings.
        Any
        person entitled to indemnification hereunder shall (i) give prompt notice
        to the
        indemnifying party of any claim with respect to which it seeks indemnification
        and (ii) permit such indemnifying party to assume the defense of such claim
        with
        counsel reasonably satisfactory to the indemnified party; provided
        that any
        person entitled to indemnification hereunder shall have the right to employ
        separate counsel and to participate in the defense of such claim, but the
        fees
        and expenses of such counsel shall be at the expense of such person unless
        (a)
        the indemnifying party has agreed to pay such fees or expenses, or (b) the
        indemnifying party shall have failed to assume the defense of such claim
        and
        employ counsel reasonably satisfactory to such person or (c) in the reasonable
        judgment of any such person, based upon written advice of its counsel, a
        conflict of interest exists between such person and the indemnifying party
        with
        respect to such claims (in which case, if the person notifies the indemnifying
        party in writing that such person elects to employ separate counsel at the
        expense of the indemnifying party, the indemnifying party shall not have
        the
        right to assume the defense of such claim on behalf of such person); and
        provided,
        further,
        that
        the failure of any indemnified party to give notice as provided herein shall
        not
        relieve the indemnifying party of its obligations hereunder, except to the
        extent that such failure to give notice shall materially adversely affect
        the
        indemnifying party in the defense of any such claim or litigation. It is
        understood that the indemnifying party shall not, in connection with any
        proceeding in the same jurisdiction, be liable for fees or expenses of more
        than
        one separate firm of attorneys at any time for all such indemnified parties.
        No
        indemnifying party will, except with the consent of the indemnified party,
        consent to entry of any judgment or enter into any settlement that does not
        include as an unconditional term thereof the giving by the claimant or plaintiff
        to such indemnified party of a release from all liability in respect of such
        claim or litigation.

      

      (d)  Contribution.
        If for
        any reason the indemnification provided for in the preceding paragraphs (a)
        and
        (b) is unavailable to an indemnified party or insufficient to hold it harmless,
        other than as expressly specified therein, then the indemnifying party shall
        contribute to the amount paid or payable by the indemnified party as a result
        of
        such loss, claim, damage or liability in such proportion as is appropriate
        to
        reflect the relative fault of the indemnified party and the indemnifying
        party,
        as well as any other relevant equitable considerations. No person guilty
        of
        fraudulent misrepresentation within the meaning of Section 11(f) of the 1933
        Act
        shall be entitled to contribution from any person not guilty of such fraudulent
        misrepresentation. In no event shall the contribution obligation of a holder
        of
        Registrable Securities be greater in amount than the dollar amount of the
        proceeds (net of all expenses paid by such holder in connection with any
        claim
        relating to this Section 6 and the amount of any damages such holder has
        otherwise been required to pay by reason of such untrue or alleged untrue
        statement or omission or alleged omission) received by it upon the sale of
        the
        Registrable Securities giving rise to such contribution obligation.

      

      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

      7. Miscellaneous.

      

      (a)  Amendments
        and Waivers.
        This
        Agreement may be amended only by a writing signed by the Company and the
        Investors. The Company may take any action herein prohibited, or omit to
        perform
        any act herein required to be performed by it, only if the Company shall
        have
        obtained the written consent to such amendment, action or omission to act,
        of
        the Investors.

      

      (b)  Notices.
        All
        notices and other communications provided for or permitted hereunder shall
        be
        made as set forth in Section 9.4 of the Purchase Agreement.

      

      (c)  Assignments
        and Transfers by Investors.
        The
        provisions of this Agreement shall be binding upon and inure to the benefit
        of
        the Investors and their respective successors and assigns. An Investor may
        transfer or assign, in whole or from time to time in part, to one or more
        persons its rights hereunder in connection with the transfer of Registrable
        Securities by such Investor to such person, provided that such Investor complies
        with all laws applicable thereto and provides written notice of assignment
        to
        the Company promptly after such assignment is effected.

      

      (d)  Assignments
        and Transfers by the Company.
        This
        Agreement may not be assigned by the Company (whether by operation of law
        or
        otherwise) without the prior written consent of the Investors, provided,
        however, that the Company may assign its rights and delegate its duties
        hereunder to any surviving or successor corporation in connection with a
        merger
        or consolidation of the Company with another corporation, or a sale, transfer
        or
        other disposition of all or substantially all of the Company’s assets to another
        corporation, without the prior written consent of the Investors, after notice
        duly given by the Company to each Investor.

      

      (e)  Benefits
        of the Agreement.
        The
        terms and conditions of this Agreement shall inure to the benefit of and
        be
        binding upon the respective permitted successors and assigns of the parties.
        Nothing in this Agreement, express or implied, is intended to confer upon
        any
        party other than the parties hereto or their respective successors and assigns
        any rights, remedies, obligations, or liabilities under or by reason of this
        Agreement, except as expressly provided in this Agreement.

      

      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

      (f)  Counterparts;
        Faxes.
        This
        Agreement may be executed in two or more counterparts, each of which shall
        be
        deemed an original, but all of which together shall constitute one and the
        same
        instrument. This Agreement may also be executed via facsimile, which shall
        be
        deemed an original.

      

      (g)  Titles
        and Subtitles.
        The
        titles and subtitles used in this Agreement are used for convenience only
        and
        are not to be considered in construing or interpreting this
        Agreement.

      

      (h)  Severability.
        Any
        provision of this Agreement that is prohibited or unenforceable in any
        jurisdiction shall, as to such jurisdiction, be ineffective to the extent
        of
        such prohibition or unenforceability without invalidating the remaining
        provisions hereof but shall be interpreted as if it were written so as to
        be
        enforceable to the maximum extent permitted by applicable law, and any such
        prohibition or unenforceability in any jurisdiction shall not invalidate
        or
        render unenforceable such provision in any other jurisdiction. To the extent
        permitted by applicable law, the parties hereby waive any provision of law
        which
        renders any provisions hereof prohibited or unenforceable in any
        respect.

      

      (i)  Further
        Assurances.
        The
        parties shall execute and deliver all such further instruments and documents
        and
        take all such other actions as may reasonably be required to carry out the
        transactions contemplated hereby and to evidence the fulfillment of the
        agreements herein contained.

      

      (j)  Entire
        Agreement.
        This
        Agreement is intended by the parties as a final expression of their agreement
        and intended to be a complete and exclusive statement of the agreement and
        understanding of the parties hereto in respect of the subject matter contained
        herein. This Agreement supersedes all prior agreements and understandings
        between the parties with respect to such subject matter.

      

      (k)  Governing
        Law; Consent to Jurisdiction; Waiver of Jury Trial.
        This
        Agreement shall be governed by, and construed in accordance with, the internal
        laws of the State of New York without regard to the choice of law principles
        thereof. Each of the parties hereto irrevocably submits to the exclusive
        jurisdiction of the courts of the State of New York located in New York County
        and the United States District Court for the Southern District of New York
        for
        the purpose of any suit, action, proceeding or judgment relating to or arising
        out of this Agreement and the transactions contemplated hereby. Service of
        process in connection with any such suit, action or proceeding may be served
        on
        each party hereto anywhere in the world by the same methods as are specified
        for
        the giving of notices under this Agreement. Each of the parties hereto
        irrevocably consents to the jurisdiction of any such court in any such suit,
        action or proceeding and to the laying of venue in such court. Each party
        hereto
        irrevocably waives any objection to the laying of venue of any such suit,
        action
        or proceeding brought in such courts and irrevocably waives any claim that
        any
        such suit, action or proceeding brought in any such court has been brought
        in an
        inconvenient forum. EACH
        OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST A TRIAL BY JURY IN ANY
        LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS
        BEEN
        CONSULTED SPECIFICALLY AS TO THIS WAIVER.

      

      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Agreement or caused their
        duly
        authorized officers to execute this Agreement as of the date first above
        written.

       

      
        	 	 	 
	 	MICROMEM TECHNOLOGIES, INC.
	 
 	 
 	 
 
	 	By:  	 
	 	
                
Name:

	 	Title:

      

      

      [INVESTORS’
        SIGNATURE PAGES TO FOLLOW]

      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

      

      INVESTORS

       

      
        	
                If
                  Entity:

              	ENTITY
                NAME:_______________________
	 	
                 

                 

                
                  By:_____________________________

                  Name:

                  Title:

                

              
	 	 
	
                If
                  Individual:

              	 
	 	 
	 	 
	 	
                _________________________________

                Name:

              

      

      

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

      Exhibit
        A

      

      Plan
        of Distribution

      

      The
        selling stockholders, which as used herein includes donees, pledgees,
        transferees or other successors-in-interest selling shares of common stock
        or
        interests in shares of common stock received after the date of this prospectus
        from a selling stockholder as a gift, pledge, partnership distribution or
        other
        transfer, may, from time to time, sell, transfer or otherwise dispose of
        any or
        all of their shares of common stock or interests in shares of common stock
        on
        any stock exchange, market or trading facility on which the shares are traded
        or
        in private transactions. These dispositions may be at fixed prices, at
        prevailing market prices at the time of sale, at prices related to the
        prevailing market price, at varying prices determined at the time of sale,
        or at
        negotiated prices.

      

      The
        selling stockholders may use any one or more of the following methods when
        disposing of shares or interests therein:

      

      -
        ordinary brokerage transactions and transactions in which the broker-dealer
        solicits purchasers;

      

      -
        block
        trades in which the broker-dealer will attempt to sell the shares as agent,
        but
        may position and resell a portion of the block as principal to facilitate
        the
        transaction;

      

      -
        purchases by a broker-dealer as principal and resale by the broker-dealer
        for
        its account;

      

      -
        an
        exchange distribution in accordance with the rules of the applicable
        exchange;

      

      -
        privately negotiated transactions;

      

      -
        short
        sales;

      

      -
        through
        the writing or settlement of options or other hedging transactions, whether
        through an options exchange or otherwise;

      

      -
        broker-dealers may agree with the selling stockholders to sell a specified
        number of such shares at a stipulated price per share;

      

      -
        a
        combination of any such methods of sale; and

      

      -
        any
        other method permitted pursuant to applicable law.

      

      The
        selling stockholders may, from time to time, pledge or grant a security interest
        in some or all of the shares of common stock owned by them and, if they default
        in the performance of their secured obligations, the pledgees or secured
        parties
        may offer and sell the shares of common stock, from time to time, under this
        prospectus, or under an amendment to this prospectus under Rule 424(b)(3)
        or
        other applicable provision of the Securities Act amending the list of selling
        stockholders to include the pledgee, transferee or other successors in interest
        as selling stockholders under this prospectus. The selling stockholders also
        may
        transfer the shares of common stock in other circumstances, in which case
        the
        transferees, pledgees or other successors in interest will be the selling
        beneficial owners for purposes of this prospectus.

      

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

      In
        connection with the sale of our common stock or interests therein, the selling
        stockholders may enter into hedging transactions with broker-dealers or other
        financial institutions, which may in turn engage in short sales of the common
        stock in the course of hedging the positions they assume. The selling
        stockholders may also sell shares of our common stock short and deliver these
        securities to close out their short positions, or loan or pledge the common
        stock to broker-dealers that in turn may sell these securities. The selling
        stockholders may also enter into option or other transactions with
        broker-dealers or other financial institutions or the creation of one or
        more
        derivative securities which require the delivery to such broker-dealer or
        other
        financial institution of shares offered by this prospectus, which shares
        such
        broker-dealer or other financial institution may resell pursuant to this
        prospectus (as supplemented or amended to reflect such
        transaction).

      

      The
        aggregate proceeds to the selling stockholders from the sale of the common
        stock
        offered by them will be the purchase price of the common stock less discounts
        or
        commissions, if any. Each of the selling stockholders reserves the right
        to
        accept and, together with their agents from time to time, to reject, in whole
        or
        in part, any proposed purchase of common stock to be made directly or through
        agents. We will not receive any of the proceeds from this offering. Upon
        any
        exercise of the warrants by payment of cash, however, we will receive the
        exercise price of the warrants.

      

      The
        selling stockholders also may resell all or a portion of the shares in open
        market transactions in reliance upon Rule 144 under the Securities Act of
        1933,
        provided that they meet the criteria and conform to the requirements of that
        rule.

      

      The
        selling stockholders and any underwriters, broker-dealers or agents that
        participate in the sale of the common stock or interests therein may be
        "underwriters" within the meaning of Section 2(11) of the Securities Act.
        Any
        discounts, commissions, concessions or profit they earn on any resale of
        the
        shares may be underwriting discounts and commissions under the Securities
        Act.
        Selling stockholders who are "underwriters" within the meaning of Section
        2(11)
        of the Securities Act will be subject to the prospectus delivery requirements
        of
        the Securities Act.

      

      To
        the
        extent required, the shares of our common stock to be sold, the names of
        the
        selling stockholders, the respective purchase prices and public offering
        prices,
        the names of any agents, dealer or underwriter, any applicable commissions
        or
        discounts with respect to a particular offer will be set forth in an
        accompanying prospectus supplement or, if appropriate, a post-effective
        amendment to the registration statement that includes this
        prospectus.

      

      In
        order
        to comply with the securities laws of some states, if applicable, the common
        stock may be sold in these jurisdictions only through registered or licensed
        brokers or dealers. In addition, in some states the common stock may not
        be sold
        unless it has been registered or qualified for sale or an exemption from
        registration or qualification requirements is available and is complied
        with.

      

      We
        have
        advised the selling stockholders that the anti-manipulation rules of Regulation
        M under the Exchange Act may apply to sales of shares in the market and to
        the
        activities of the selling stockholders and their affiliates. In addition,
        we
        will make copies of this prospectus (as it may be supplemented or amended
        from
        time to time) available to the selling stockholders for the purpose of
        satisfying the prospectus delivery requirements of the Securities Act. The
        selling stockholders may indemnify any broker-dealer that participates in
        transactions involving the sale of the shares against certain liabilities,
        including liabilities arising under the Securities Act.

      

      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

      We
        have
        agreed to indemnify the selling stockholders against liabilities, including
        liabilities under the Securities Act and state securities laws, relating
        to the
        registration of the shares offered by this prospectus.

      

      We
        have
        agreed with the selling stockholders to keep the registration statement of
        which
        this prospectus constitutes a part effective until the earlier of (1) such
        time
        as all of the shares covered by this prospectus have been disposed of pursuant
        to and in accordance with the registration statement or (2) the date on which
        the shares may be sold pursuant to Rule 144(k) of the Securities
        Act.

      
 

      
        
           

        

        
          -15-

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