Document:

vmga-ex45_399.htm

 

Exhibit 4.5 

DESCRIPTION OF THE REGISTRANT’S SECURITIES REGISTERED PURSUANT TO SECTION 12 

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED 

As of September 30, 2022, VMG Consumer Acquisition Corp. (“we,” “our,” “us” or the “Company”) had the following three classes of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”): (i) its units, consisting of one share of Class A common stock (as defined below) and one-half of one redeemable warrant (as defined below), with each whole warrant entitling the holder thereof to purchase one share of Class A common stock (the “units”), (ii) its Class A common stock, $0.0001 par value per share (“Class A common stock”), and (iii) its public warrants, with each whole warrant exercisable for one share of Class A common stock for $11.50 per share (the “warrants”). 

Pursuant to our amended and restated certificate of incorporation, our authorized share capital consists of 220,000,000 shares, including 200,000,000 shares of Class A common stock, $0.0001 par value, 20,000,000 shares of Class B common stock, $0.0001 par value, and 1,000,000 shares of preferred stock, $0.0001 par value. The following description summarizes the material terms of our capital stock and does not purport to be complete. It is subject to, and qualified in its entirety by reference to, our amended and restated certificate of incorporation, and our warrant agreement, each of which is incorporated by reference as an exhibit to our Annual Report on Form 10-K for the year ended September 30, 2022 (the “Report”) of which this Exhibit 4.5 is a part. Defined terms used herein but not otherwise defined shall have the meaning ascribed to such terms in the Report. 

Units 

Each unit has an offering price of $10.00 and consists of one share of Class A common stock and one-half of one warrant. Each whole warrant entitles the holder thereof to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as described in this Report. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of the Company’s shares of Class A common stock. This means only a whole warrant may be exercised at any given time by a warrant holder. For example, if a warrant holder holds one-half of one warrant to purchase a share of Class A common stock, such warrant will not be exercisable. If a warrant holder holds two-halves of one warrant, such whole warrant will be exercisable for one share of Class A common stock at a price of $11.50 per share. 

Common Stock

Except as described below, stockholders of record are entitled to one vote for each share held on all matters to be voted on by stockholders. These provisions of our amended and restated certificate of incorporation may be amended only by approval of at least 90% of the shares of our Class B common stock voting in an annual meeting. With respect to any other matter submitted to a vote of our stockholders, including any vote in connection with our initial business combination, except as required by law, holders of our founder shares and holders of our public shares will vote together as a single class, with each share entitling the holder to one vote. 

Unless specified in our amended and restated certificate of incorporation, or as required by applicable provisions of the DGCL or applicable stock exchange rules, the affirmative vote of a majority of our shares of common stock that are voted is required to approve any such matter voted on by our stockholders. There is no cumulative voting with respect to the election of directors, with the result that the holders of more than 50% of the shares voted for the election of directors can elect all of the directors. Our stockholders are entitled to receive ratable dividends when, as and if declared by the board of directors out of funds legally available therefor.

Prior to our initial business combination, only holders of our founder shares will have the right to vote on the election of directors. Holders of our public shares will not be entitled to vote on the election of directors during such time. In addition, prior to the completion of an initial business combination, holders of a majority of our founder shares may remove a member of the board of directors for any reason. 

 

 

Because our amended and restated certificate of incorporation authorizes the issuance of up to 200,000,000 shares of Class A common stock, if we were to enter into a business combination, we may (depending on the terms of such a business combination) be required to increase the number of shares of Class A common stock which we are authorized to issue at the same time as our stockholders vote on the business combination to the extent we seek stockholder approval in connection with our initial business combination. 

In accordance with the Nasdaq corporate governance requirements, we are not required to hold an annual meeting until one year after our first fiscal year end following our listing on Nasdaq. Under Section 211(b) of the DGCL, we are, however, required to hold annual meetings of stockholders for the purpose of electing directors in accordance with our bylaws, unless such election is made by written consent in lieu of such a meeting. We may not hold an annual meeting of stockholders to elect new directors prior to the completion of our initial business combination, and thus we may not be in compliance with Section 211(b) of the DGCL, which requires an annual meeting. Therefore, if our stockholders want us to hold an annual meeting prior to the completion of an initial business combination, they may attempt to force us to hold one by submitting an application to the Delaware Court of Chancery in accordance with Section 211(c) of the DGCL. Prior to the completion of an initial business combination, any vacancy on the board of directors may be filled by a nominee chosen by holders of a majority of our founder shares. In addition, prior to the completion of an initial business combination, holders of a majority of our founder shares may remove a member of the board of directors for any reason.

We will provide our public stockholders with the opportunity to redeem all or a portion of their public shares upon the completion of our initial business combination at a per-share price, payable in cash, equal to the aggregate amount then on deposit in the trust account calculated as of two business days prior to the consummation of our initial business combination, including interest earned on the funds held in the trust account and not previously released to us to pay our taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, subject to the limitations and on the conditions described herein. The amount in the trust account is initially anticipated to be $10.20 per public share. The per-share amount we will distribute to investors who properly redeem their shares will not be reduced by the deferred underwriting commissions we will pay to the underwriters. Our sponsor, officers and directors will enter into a letter agreement with us, pursuant to which they will agree to waive their redemption rights with respect to their founder shares and public shares in connection with the completion of our initial business combination. Unlike many special purpose acquisition companies that hold stockholder votes and conduct proxy solicitations in conjunction with their initial business combinations and provide for related redemptions of public shares for cash upon completion of such initial business combinations even when a vote is not required by law, if a stockholder vote is not required by law and we do not decide to hold a stockholder vote for business or other legal reasons, we will, pursuant to our amended and restated certificate of incorporation, conduct the redemptions pursuant to the tender offer rules of the SEC, and file tender offer documents with the SEC prior to completing our initial business combination. Our amended and restated certificate of incorporation will require these tender offer documents to contain substantially the same financial and other information about our initial business combination and the redemption rights as is required under the SEC’s proxy rules. If, however, a stockholder approval of the transaction is required by law, or we decide to obtain stockholder approval for business or other reasons, we will, like many special purpose acquisition companies, offer to redeem shares in conjunction with a proxy solicitation pursuant to the proxy rules and not pursuant to the tender offer rules. If we seek stockholder approval, we will complete our initial business combination only if a majority of the shares of common stock voted are voted in favor of our initial business combination. However, the participation of our sponsor, officers, directors, advisors or their affiliates in privately-negotiated transactions (as described in this Report), if any, could result in the approval of our initial business combination even if a majority of our public stockholders vote, or indicate their intention to vote, against such initial business combination. For purposes of seeking approval of the majority of our outstanding common stock, non-votes will have no effect on the approval of our initial business combination once a quorum is obtained. We intend to give not less than 10 days nor more than 60 days prior written notice of any such meeting, if required, at which a vote shall be taken to approve our initial business combination.

If we seek stockholder approval of our initial business combination and we do not conduct redemptions in connection with our initial business combination pursuant to the tender offer rules, our amended and restated certificate of incorporation will provide that a public stockholder, together with any affiliate of such stockholder or any other person with whom such stockholder is acting in concert or as a “group” (as defined under Section 13 of the Exchange Act), will be restricted from redeeming its shares with respect to Excess Shares without our prior 

 

 

consent. However, we would not be restricting our stockholders’ ability to vote all of their shares (including Excess Shares) for or against our initial business combination. Our stockholders’ inability to redeem the Excess Shares will reduce their influence over our ability to complete our initial business combination, and such stockholders could suffer a material loss in their investment if they sell such Excess Shares on the open market. Additionally, such stockholders will not receive redemption distributions with respect to the Excess Shares if we complete our initial business combination. And, as a result, such stockholders will continue to hold that number of shares exceeding 15% and, in order to dispose such shares would be required to sell their shares in open market transactions, potentially at a loss.

If we seek stockholder approval in connection with our initial business combination, our sponsor, officers and directors have agreed to vote their founder shares and any public shares purchased during or after our initial public offering (including in open market and privately-negotiated transactions) in favor of our initial business combination. As a result, in addition to our initial stockholders’ founder shares, we would need 7,500,001, or 37.5%, of the 20,000,000 public shares sold in this offering to be voted in favor of an initial business combination in order to have our initial business combination approved (assuming all outstanding shares are voted and the over-allotment option is not exercised). Additionally, each public stockholder may elect to redeem their public shares irrespective of whether they vote for or against the proposed transaction or whether they were a public stockholder on the record date for the general meeting held to approve the proposed transaction.

In the event of a liquidation, dissolution or winding up of the company after a business combination, our stockholders are entitled to share ratably in all assets remaining available for distribution to them after payment of liabilities and after provision is made for each class of shares, if any, having preference over the common stock. Our stockholders have no preemptive or other subscription rights. There are no sinking fund provisions applicable to the common stock, except that we will provide our public stockholders with the opportunity to redeem their public shares for cash at a per-share price equal to the aggregate amount then on deposit in the trust account, including interest earned on the funds held in the trust account and not previously released to us to pay our taxes (less up to $100,000 of interest to pay dissolution expenses), divided by the number of then outstanding public shares, upon the completion of our initial business combination, subject to the limitations and on the conditions described herein. 

Warrants 

Each whole warrant entitles the registered holder to purchase one share of Class A common stock at a price of $11.50 per share, subject to adjustment as discussed below, at any time commencing on the later of one year from the closing of this offering and 30 days after the completion of our initial business combination, provided, in each case, that we have an effective registration statement under the Securities Act covering the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating to them is available (or we permit holders to exercise their warrants on a cashless basis under the circumstances specified in the warrant agreement) and such shares are registered, qualified or exempt from registration under the securities, or blue sky, laws of the state of residence of the holder. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for a whole number of shares of Class A common stock. This means only a whole warrant may be exercised at a given time by a warrant holder. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Accordingly, unless you purchase at least two units, you will not be able to receive or trade a whole warrant. The warrants will expire five years after the completion of our initial business combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation.

We will not be obligated to deliver any shares of Class A common stock pursuant to the exercise of a warrant and will have no obligation to settle such warrant exercise unless a registration statement under the Securities Act with respect to the shares of Class A common stock underlying the warrants is then effective and a prospectus relating thereto is current, subject to our satisfying our obligations described below with respect to registration. No warrant will be exercisable and we will not be obligated to issue a share of Class A common stock upon exercise of a warrant unless the share of Class A common stock issuable upon such warrant exercise has been registered, qualified or deemed to be exempt under the securities laws of the state of residence of the registered holder of the warrants. In the event that the conditions in the two immediately preceding sentences are not satisfied with respect to a warrant, the holder of such warrant will not be entitled to exercise such warrant and such warrant may have no value and expire worthless. In no event will we be required to net cash settle any warrant. In the event that a 

 

 

registration statement is not effective for the exercised warrants, the purchaser of a unit containing such warrant will have paid the full purchase price for the unit solely for the share of Class A common stock underlying such unit. 

We have agreed that as soon as practicable, but in no event later than fifteen (15) business days after the closing of our initial business combination, we will use our commercially reasonable efforts to file with the SEC a registration statement for the registration, under the Securities Act, of the shares of Class A common stock issuable upon exercise of the warrants. We will use our commercially reasonable efforts to cause the same to become effective and to maintain the effectiveness of such registration statement, and a current prospectus relating thereto, until the expiration or redemption of the warrants in accordance with the provisions of the warrant agreement. If a registration statement covering the shares of Class A common stock issuable upon exercise of the warrants is not effective by the sixtieth (60th) business day after the closing of our initial business combination, warrant holders may, until such time as there is an effective registration statement and during any period when we will have failed to maintain an effective registration statement, exercise warrants on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act or another exemption. Notwithstanding the above, if our shares of Class A common stock are at the time of any exercise of a warrant not listed on a national securities exchange such that they satisfy the definition of a “covered security” under Section 18(b)(1) of the Securities Act, we may, at our option, require holders of public warrants who exercise their warrants to do so on a “cashless basis” in accordance with Section 3(a)(9) of the Securities Act and, in the event we so elect, we will not be required to file or maintain in effect a registration statement, and in the event we do not so elect, we will use our commercially reasonable efforts to register or qualify the shares under applicable blue sky laws to the extent an exemption is not available. In such event, each holder would pay the exercise price by surrendering each such warrant for that number of shares of Class A common stock equal to the lesser of (A) the quotient obtained by dividing (x) the product of the number of shares of Class A common stock underlying the warrants, multiplied the excess of the “fair market value” less the exercise price of the warrants by (y) the fair market value and (B) 0.361. The “fair market value” of our Class A common stock shall mean the volume weighted average price of the shares of Class A common stock for the 10 trading days ending on the trading day prior to the date on which the notice of redemption is sent to the holders of warrants.

Redemption of Warrants When the Price per Share of Class A Common Stock Equals or Exceeds $18.00

Once the warrants become exercisable, we may redeem the outstanding warrants (except as described herein with respect to the private placement warrants):

	
 
	
•
	
in whole and not in part;

	
 
	
•
	
at a price of $0.01 per warrant;

	
 
	
•
	
upon not less than 30 days’ prior written notice of redemption (the “30-day redemption period”) to each warrant holder; and

	
 
	
•
	
if, and only if, the last reported sale price of the Class A common stock for any 20 trading days within a 30-trading day period ending three business days before we send to the notice of redemption to the warrant holders (which we refer to as the “Reference Value”) equals or exceeds $18.00 per share (as adjusted for share sub-divisions, share capitalizations, reorganizations, recapitalizations and the like).

If and when the warrants become redeemable by us, we may exercise our redemption right even if we are unable to register or qualify the underlying securities for sale under all applicable state securities laws. However, we will not redeem the warrants unless an effective registration statement under the Securities Act covering the shares of Class A common stock issuable upon exercise of the warrants is effective and a current prospectus relating to those Class A common stock is available throughout the 30-day redemption period. 

We have established the last of the redemption criteria discussed above to prevent a redemption call unless there is at the time of the call a significant premium to the warrant exercise price. If the foregoing conditions are satisfied and we issue a notice of redemption of the warrants, each warrant holder will be entitled to exercise his, her or its warrant prior to the scheduled redemption date. Any such exercise would not be done on a “cashless” basis and would require the exercising warrant holder to pay the exercise price for each warrant being exercised. However, the price of the Class A common stock may fall below the $18.00 redemption trigger price (as adjusted for share sub-

 

 

divisions, share capitalizations, reorganizations, recapitalizations and the like) as well as the $11.50 (for whole shares) warrant exercise price after the redemption notice is issued. 

Redemption Procedures. A holder of a warrant may notify us in writing in the event it elects to be subject to a requirement that such holder will not have the right to exercise such warrant, to the extent that after giving effect to such exercise, such person (together with such person’s affiliates), to the warrant agent’s actual knowledge, would beneficially own in excess of 4.9% or 9.8% (as specified by the holder) of the shares of Class A common stock outstanding immediately after giving effect to such exercise.

Anti-dilution Adjustments. If the number of outstanding shares of Class A common stock is increased by a share capitalization payable in Class A common stock, or by a split-up share of common stock or other similar event, then, on the effective date of such share capitalization, split-up or similar event, the number of shares of Class A common stock issuable on exercise of each warrant will be increased in proportion to such increase in the outstanding shares of common stock. A rights offering to holders of common stock entitling holders to purchase shares of Class A common stock at a price less than the “historical fair market value” (as defined below) will be deemed a share capitalization of a number of shares of Class A common stock equal to the product of (i) the number of shares of Class A common stock actually sold in such rights offering (or issuable under any other equity securities sold in such rights offering that are convertible into or exercisable for Class A common stock) and (ii) one minus the quotient of (x) the price per share of Class A common stock paid in such rights offering and (y) the historical fair market value. For these purposes (i) if the rights offering is for securities convertible into or exercisable for Class A common stock, in determining the price payable for shares of Class A common stock, there will be taken into account any consideration received for such rights, as well as any additional amount payable upon exercise or conversion and (ii) “historical fair market value” means the volume weighted average price of Class A common stock as reported during the ten (10) trading day period ending on the trading day prior to the first date on which the shares of Class A common stock trade on the applicable exchange or in the applicable market, regular way, without the right to receive such rights.

In addition, if we, at any time while the warrants are outstanding and unexpired, pay a dividend or make a distribution in cash, securities or other assets to the holders of Class A common stock on account of such shares of Class A common stock (or other securities into which the warrants are convertible), other than (a) as described above, (b) certain ordinary cash dividends, (c) to satisfy the redemption rights of the holders of Class A common stock in connection with a proposed initial business combination, or (d) in connection with the redemption of our public shares upon our failure to complete our initial business combination, then the warrant exercise price will be decreased, effective immediately after the effective date of such event, by the amount of cash and/or the fair market value of any securities or other assets paid on each share of Class A common stock in respect of such event. 

If the number of outstanding Class A common stock is decreased by a consolidation, combination, reverse share split or reclassification of Class A common stock or other similar event, then, on the effective date of such consolidation, combination, reverse share split, reclassification or similar event, the number of Class A common stock issuable on exercise of each warrant will be decreased in proportion to such decrease in outstanding Class A common stock. 

Whenever the number of Class A common stock purchasable upon the exercise of the warrants is adjusted, as described above, the warrant exercise price will be adjusted by multiplying the warrant exercise price immediately prior to such adjustment by a fraction (x) the numerator of which will be the number of shares of Class A common stock purchasable upon the exercise of the warrants immediately prior to such adjustment, and (y) the denominator of which will be the number of shares of Class A common stock so purchasable immediately thereafter. 

In case of any reclassification or reorganization of the outstanding shares of Class A common stock (other than those described above or that solely affects the par value of such Class A common stock), or in the case of any merger or consolidation of us with or into another corporation (other than a consolidation or merger in which we are the continuing corporation and that does not result in any reclassification or reorganization of our issued and outstanding shares of Class A common stock), or in the case of any sale or conveyance to another corporation or entity of the assets or other property of us as an entirety or substantially as an entirety in connection with which we are dissolved, the holders of the warrants will thereafter have the right to purchase and receive, upon the basis and upon the terms and conditions specified in the warrants and in lieu of the shares of Class A common stock 

 

 

immediately theretofore purchasable and receivable upon the exercise of the rights represented thereby, the kind and amount of shares of Class A common stock or other securities or property (including cash) receivable upon such reclassification, reorganization, merger or consolidation, or upon a dissolution following any such sale or transfer, that the holder of the warrants would have received if such holder had exercised their warrants immediately prior to such event. If less than 70% of the consideration receivable by the holders of Class A common stock in such a transaction is payable in the form of Class A common stock in the successor entity that is listed for trading on a national securities exchange or is quoted in an established over-the-counter market, or is to be so listed for trading or quoted immediately following such event, and if the registered holder of the warrant properly exercises the warrant within thirty days following public disclosure of such transaction, the warrant exercise price will be reduced as specified in the warrant agreement based on the Black-Scholes Warrant Value (as defined in the warrant agreement) of the warrant. The purpose of such exercise price reduction is to provide additional value to holders of the warrants when an extraordinary transaction occurs during the exercise period of the warrants pursuant to which the holders of the warrants otherwise do not receive the full potential value of the warrants. 

The warrants will be issued in registered form under a warrant agreement between Continental Stock Transfer & Trust Company, as warrant agent, and us. The warrant agreement provides that the terms of the warrants may be amended without the consent of any holder to cure any ambiguity or correct any defective provision, but requires the approval by the holders of at least 65% of the then outstanding public warrants to make any change that adversely affects the interests of the registered holders. You should review a copy of the warrant agreement, which will be filed as an exhibit to this Report, for a complete description of the terms and conditions applicable to the warrants. 

In addition, if (x) we issue additional shares of Class A common stock or equity-linked securities for capital raising purposes in connection with the closing of our initial business combination at an issue price or effective issue price of less than $9.20 per share of Class A common stock (with such issue price or effective issue price to be determined in good faith by our board of directors and, in the case of any such issuance to our sponsors or their affiliates, without taking into account any founder shares held by our initial stockholders or such affiliates, as applicable, prior to such issuance), (y) the aggregate gross proceeds from such issuances represent more than 65% of the total equity proceeds, and interest thereon, available for the funding of our initial business combination on the date of the completion of our initial business combination (net of redemptions), and (z) the volume-weighted average trading price of our Class A common stock during the 20 trading day period starting on the trading day prior to the day on which we complete our initial business combination (such price, the “Market Value”) is below $9.20 per share, then the exercise price of the warrants will be adjusted (to the nearest cent) to be equal to 115% of the higher of the Market Value and the Newly Issued Price, and the $18.00 per share redemption trigger price described adjacent to “Redemption of warrants when the price per share of Class A common stock equals or exceeds $18.00” will be adjusted (to the nearest cent) to be equal to 180% of the higher of the Market Value and the Newly Issued Price. 

The warrants may be exercised upon surrender of the warrant certificate on or prior to the expiration date at the offices of the warrant agent, with the exercise form on the reverse side of the warrant certificate completed and executed as indicated, accompanied by full payment of the exercise price (or on a cashless basis, if applicable), by certified or official bank check payable to us, for the number of warrants being exercised. The warrant holders do not have the rights or privileges of holders of common stock and any voting rights until they exercise their warrants and receive Class A common stock. After the issuance of shares of Class A common stock upon exercise of the warrants, each holder will be entitled to one vote for each share held of record on all matters to be voted on by stockholders.

No fractional shares will be issued upon exercise of the warrants. If, upon exercise of the warrants, a holder would be entitled to receive a fractional interest in a share, we will, upon exercise, round down to the nearest whole number, the number of shares of Class A common stock to be issued to the warrant holder.

We have agreed that, subject to applicable law, any action, proceeding or claim against us arising out of or relating in any way to the warrant agreement will be brought and enforced in the courts of the State of New York or the United States District Court for the Southern District of New York, and we irrevocably submit to such jurisdiction, which jurisdiction will be the exclusive forum for any such action, proceeding or claim. This provision applies to claims under the Securities Act but does not apply to claims under the Exchange Act or any claim for which the federal district courts of the United States of America are the sole and exclusive forum.Exhibit 10.1

 

TMC
the metals company Inc.

 

Common Shares

(without par value)

 

AT-THE-MARKET EQUITY DISTRIBUTION AGREEMENT

 

December 22, 2022

 

STIFEL, NICOLAUS & COMPANY, INCORPORATED

One South Street, 15th Floor

Baltimore, Maryland 21202

 

Wedbush Securities Inc.

600 Montgomery Street

29th Floor

San Francisco, California 94111

 

Ladies and Gentlemen:

 

TMC the metals company Inc.,
a company existing under the laws of the Province of British Columbia (the “Company”), proposes, subject to the terms
and conditions stated herein, to issue and sell from time to time to or through Stifel, Nicolaus & Company, Incorporated
(“Stifel Nicolaus”) or Wedbush Securities Inc. (“Wedbush,” and together with Stifel Nicolaus, the
 “Agents”), in each case, as sales agent and/or principal, shares (the “Shares”) of the Company’s
common shares, without par value (the “Common Shares”), having an aggregate offering price of up to US$30,000,000
on the terms set forth in Section 2 of this At-The-Market Equity Distribution Agreement (the “Agreement”). The
Company agrees that whenever it determines to sell Shares directly to an Agent as principal, it will enter into a separate agreement
with such Agent (each, a “Terms Agreement”) in substantially the form of Annex 1 hereto, relating to such sale in
accordance with Section 3 of this Agreement. Certain initially capitalized terms used herein are defined in Section 19 of this
Agreement.

 

Section 1. Representations
and Warranties. The Company represents and warrants to the Agents that, as of the Commencement Time and on each Representation Date
(as defined in Section 3(k) below), each Applicable Time (as defined in Section 19 below), and each Settlement Date (as
defined in Section 2(a) below):

 

(a)            Compliance
with Registration Requirements. The Company has prepared and filed with the Commission a registration statement on Form S-3
(File No. 333-267479), including a related Base Prospectus, under the 1933 Act, in respect of the Common Shares (including the Shares)
(collectively, the “Securities”), and any pre-effective amendment thereto. Such Registration Statement has become
effective. The initial Effective Date of the Registration Statement was not earlier than the date three years before the Commencement
Time. No stop order suspending the effectiveness of the Registration Statement or any part thereof has been issued and no proceeding
for that purpose has been initiated or, to the knowledge of the Company, threatened by the Commission. The Company has prepared and filed
with the Commission the Prospectus Supplement to the Base Prospectus specifically relating to the Shares prepared and filed with the
Commission pursuant to Rule 424(b) under the 1933 Act. Any reference herein to the Registration Statement, the Base Prospectus,
the Prospectus Supplement, or the Prospectus shall be deemed to refer to and include the documents incorporated by reference therein
pursuant to Item 12 of Form S-3 under the 1933 Act; any reference herein to any amendment or supplement to the Base Prospectus,
the Prospectus Supplement, or the Prospectus shall be deemed to refer to and include any post-effective amendment to the Registration
Statement, any prospectus supplement relating to the Shares filed with the Commissions pursuant to rule 424(b) under the 1933
Act and any documents filed under the 1934 Act and incorporated therein, in each case after the date of the Base Prospectus, the Prospectus
Supplement or the Prospectus, as the case may be; any reference to any amendment to the Registration Statement shall be deemed to refer
to and include any annual report of the Company filed pursuant to Section 13(a) or 15(d) of the 1934 Act after the effective
date of the Registration Statement that is incorporated by reference in the Registration Statement. To the extent that the Company elects
to file a successor registration statement with respect to the Shares, after the effectiveness of any such registration statement, all
references to “Registration Statement” included in this Agreement shall be deemed to include such new registration statement,
including all documents incorporated by reference therein pursuant to Item 12 of Form S-3, and all references to “Base Prospectus”
included in this Agreement shall be deemed to include the final form of prospectus, including all documents incorporated therein by reference,
included in any such registration statement at the time such registration statement became effective.

 

    

     

    

 

At the Commencement Time,
on each Effective Date, at each Applicable Time, at each Settlement Date and at all times during which a prospectus is required by the
1933 Act to be delivered (whether physically, deemed to be delivered pursuant to Rule 153 or through compliance with Rule 172
or any similar rule) in connection with any offer or sale of Shares, the Registration Statement complied and will comply in all material
respects with the applicable requirements of the 1933 Act and did not and will not contain any untrue statement of a material fact or
omit to state any material fact required to be stated therein or necessary in order to make the statements therein not misleading; and
on the date of any filing pursuant to Rule 424(b), at the Commencement Time, at each Applicable Time, on each Settlement Date and
at all times during which a prospectus is required by the 1933 Act to be delivered (whether physically, deemed to be delivered pursuant
to Rule 153 or through compliance with Rule 172 or any similar rule) in connection with any offer or sale of Shares, the Prospectus
(or any supplement thereto) complied and will comply in all material respects with the applicable requirements of the 1933 Act and did
not and will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no representations
or warranties as to the information contained in or omitted from the Registration Statement or the Prospectus (or any supplement thereto)
in reliance upon and in conformity with information furnished in writing to the Company by the Agents specifically for inclusion in the
Registration Statement or the Prospectus (or any supplement thereto).

 

At the Commencement Time,
at each Applicable Time and at each Settlement Date, the General Disclosure Package will not contain any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The preceding sentence does not apply to statements in or omissions from the General Disclosure Package
based upon and in conformity with written information furnished to the Company by the Agents specifically for use therein.

 

    

     

    

 

(b)            Incorporation
of Documents by Reference. The documents incorporated or deemed to be incorporated by reference in the Registration Statement and
the Prospectus, when they became effective or were filed with the Commission, as the case may be, complied in all material respects with
the 1934 Act and, when read together with the other information in the Registration Statement and the Prospectus at the Commencement
Time and at the time the Prospectus was issued, did not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which
they were made, not misleading.

 

(c)            Independent
Accountants. Ernst & Young LLP, who have certified certain financial statements of the Company and its consolidated subsidiaries
and delivered their report with respect to the audited consolidated financial statements included or incorporated by reference in the
Registration Statement and the Prospectus, are independent public accountants with respect to the Company within the meaning thereof
under the 1933 Act.

 

(d)            Financial
Statements. The consolidated historical financial statements of the Company and its consolidated subsidiaries included or incorporated
by reference in the Registration Statement, the General Disclosure Package and the Prospectus, together with the related notes and schedules,
present fairly, in all material respects, the financial condition, results of operations and cash flows of the Company and its consolidated
subsidiaries as of the dates and for the periods indicated, comply in all material respects as to form with the applicable accounting
requirements of the 1933 Act and have been prepared in conformity with generally accepted accounting principles (“GAAP”)
applied on a consistent basis throughout the periods involved (except as otherwise noted therein); provided that unaudited interim financial
statements are subject to normal year-end audit adjustments and do not contain all footnotes required by GAAP. The Company does not have
any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not described in the Registration
Statement (excluding the exhibits thereto), the General Disclosure Package and the Prospectus, other than such liabilities and obligations
that where incurred in the ordinary course of business.

 

(e)            No
Material Adverse Change in Business. Since the respective dates as of which information is included or incorporated in the Registration
Statement, the General Disclosure Package or the Prospectus, except as otherwise stated therein, (A) there has been no material
adverse effect on the condition (financial or otherwise), prospects, earnings, business or properties of the Company and its subsidiaries,
taken as a whole, whether or not arising from transactions in the ordinary course of business (a “Material Adverse Effect”),
(B) there have been no transactions entered into by the Company or any of its subsidiaries, other than those in the ordinary course
of business, which are material with respect to the Company and its subsidiaries considered as one enterprise, and (C) there has
been no dividend or distribution of any kind declared, paid or made by the Company on any class of its capital stock. Except as may be
described in the Registration Statement, the General Disclosure Package or the Prospectus, neither the Company nor any of its subsidiaries
has sustained, since the date of the latest financial statements included or incorporated by reference in the Registration Statement,
the General Disclosure Package and the Prospectus, any material loss or interference with its business from fire, explosion, flood or
other calamity, whether or not covered by insurance, nor from any labor dispute or court or governmental action, order or decree.

 

    

     

    

 

(f)             Good
Standing of the Company and its Subsidiaries. Each of the Company and its subsidiaries has been duly incorporated as a corporation
or formed as a limited liability company, as the case may be, is validly existing in good standing under the laws of the jurisdiction
in which it is incorporated or formed, with full power and authority to own or lease, as the case may be, and to operate its properties
and conduct its business as described in the Registration Statement, the General Disclosure Package and the Prospectus, and is duly qualified
to do business as a foreign corporation or limited liability company in good standing under the laws of each jurisdiction which requires
such qualification, except to the extent that the failure to be so qualified or be in good standing would not, singly or in the aggregate,
have a Material Adverse Effect, or materially adversely affect the ability of the Company and any of its subsidiaries to perform its
obligations under the this Agreement or any Terms Agreement. All of the Company’s subsidiaries as of the date of this Agreement
are set forth in Exhibit 21.1 of the Company’s most recently filed Annual Report on Form 10-K.

 

(g)            Capitalization.
The issued and outstanding Common Shares have been duly authorized and validly issued and are fully paid and non-assessable; none of
the outstanding Common Shares were issued in violation of the preemptive or other similar rights of any securityholder of the Company.
Except as may be described in the Registration Statement, the General Disclosure Package or the Prospectus, the Common Shares have been
registered pursuant to Section 12(b) of the 1934 Act and is listed on the Nasdaq Global Select Market (“Nasdaq”),
and the Company has taken no action designed to, or likely to have the effect of, terminating the registration or listing of the Common
Shares from the Nasdaq, nor has the Company received any notification that the Commission or the Nasdaq is contemplating terminating
such registration or listing.

 

(h)            Capitalization
of Subsidiaries. All of the outstanding membership interests of each subsidiary that is a limited liability company, and all of the
outstanding shares of capital stock of each subsidiary that is a corporation, have been duly and validly authorized and issued and are
fully paid and nonassessable, except as otherwise set forth in the Registration Statement, the General Disclosure Package and the Prospectus.

 

(i)             Authorization
of Agreements. This Agreement has been, and any Terms Agreement will be, duly authorized, executed, and delivered by the Company.

 

(j)             Authorization
and Description of Securities. The Shares have been or will be duly authorized and reserved for issuance and sale pursuant to this
Agreement and, when issued and delivered by the Company pursuant to this Agreement or any Terms Agreement against payment of the consideration
set forth herein, will be validly issued, fully paid and non-assessable. The terms of the Common Shares conform to all statements relating
thereto contained in the Registration Statement, the General Disclosure Package and the Prospectus and such description conforms to the
rights set forth in the articles of the Company. No holder of the Shares will be subject to personal liability by reason of being such
a holder; and the issuance of the Shares is not subject to the preemptive or other similar rights of any securityholder of the Company.

 

(k)            Absence
of Defaults and Conflicts. Neither the Company nor any subsidiary is (i)(1) in violation or default of any provision of its
charter, articles or bylaws, as applicable, or (2) in default in the performance or observance of any obligation, agreement, covenant
or condition contained in any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement
or instrument to which it is a party or bound or to which its property is subject (collectively, “Agreements and Instruments”),
or (ii)(1) the execution, delivery and performance of this Agreement or of any Term Agreement and the consummation of the transactions
contemplated herein or in any Terms Agreement and in the Registration Statement (including the issuance and sale of the Shares and the
use of proceeds from the sale of the Shares as described in the Prospectus under the caption “Use of Proceeds”) and compliance
by the Company with its obligations hereunder do not and will not, whether with or without the giving of notice or passage of time or
both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any lien, charge or encumbrance
upon any property or assets of the Company or any subsidiary pursuant to, the Agreements and Instruments, (2) nor will such action
result in any violation of the provisions of the articles or bylaws of the Company or such similar governing instruments of any subsidiary,
(3) nor will such action result in the violation of any applicable statute, law, rule, regulation, judgment, order or decree of
any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company
or such subsidiary or any of its properties, as applicable, except, with respect to clauses (i)(2), (ii)(1) or (ii)(3), where such
violation or default would not, singly or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

    

     

    

 

(l)             Absence
of Labor Dispute. No labor disturbance, problem or dispute with the employees of the Company or any of its subsidiaries which might
be expected to have a Material Adverse Effect exists or, to the Company’s knowledge, is threatened or imminent.

 

(m)           Absence
of Proceedings. Except as described in the Registration Statement, the General Disclosure Package or the Prospectus, no action, suit
or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its
subsidiaries or its or their property is pending or, to the best knowledge of the Company, threatened in writing that would reasonably
be expected, singly or in the aggregate, to have a Material Adverse Effect.

 

(n)            Accuracy
of Exhibits. There are no contracts or documents which are required to be described in the Registration Statement or the Prospectus
or the documents incorporated by reference therein or to be filed as exhibits thereto which have not been so described and filed as required.

 

(o)            Possession
of Intellectual Property. The Company and its subsidiaries own or possess adequate rights to use all material patents, patent applications,
trademarks, service marks, trade names, trademark registrations, service mark registrations, copyrights and licenses necessary for the
conduct of their business and have no reason to believe that the conduct of their respective businesses will conflict with, and have
not received any notice of any claim of conflict with, any such rights of others, where if determined adversely to the Company or its
subsidiaries would have a Material Adverse Effect.

 

(p)            Absence
of Further Requirements. No consent, approval, authorization, filing with or order of any court or governmental agency or body is
required in connection with the transactions contemplated herein, except such as have been made or obtained under the 1933 Act and such
as may be required under the 1934 Act, the Financial Industry Regulatory Authority, Inc. (“FINRA”) and the blue
sky laws of any jurisdiction in connection with the purchase and distribution of the Shares by the Agents in the manner contemplated
herein and in the Registration Statement, the General Disclosure Package and the Prospectus.

 

    

     

    

 

(q)            Absence
of Manipulation. The Company has not taken, directly or indirectly, any action designed to or that would constitute or that might
reasonably be expected to cause or result in, under the 1934 Act or otherwise, stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of the Shares.

 

(r)             Possession
of Licenses and Permits. The Company and its subsidiaries possess or own all licenses, certificates, permits and other authorizations
(collectively, “Permits”) issued by, and have made all declarations and filings with, the applicable federal, state,
local or foreign governmental or regulatory authorities that are necessary for the ownership or lease of its properties or the conduct
of its businesses as described in the Registration Statement, the General Disclosure Package and the Prospectus, except where the failure
to possess or make the same would not reasonably be expected, singly or in the aggregate to have a Material Adverse Effect; the Company
and its subsidiaries are not in violation of, or in default under, any such Permit, except where such violation or default would not
reasonably be expected to have a Material Adverse Effect; and the Company and its subsidiaries have not received written notice of any
revocation or modification of any such Permit and do not have any reason to believe that any such Permit will not be renewed in the ordinary
course, in each case which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Material
Adverse Effect.

 

(s)            Title
to Property. (1)  The Company and each of its subsidiaries have (i) generally satisfactory title to all their respective
interests in their properties owned or leased by them, title investigations having been carried out by the Company and its subsidiaries
in accordance with the industry practice in the areas in which the Company and its subsidiaries operate, (ii) good and marketable
title in fee simple to all real property owned by them to the extent necessary to carry on their business and (iii) good and marketable
title to all personal property owned by them to the extent necessary to carry on their business, in each case free and clear of all mortgages,
pledges, liens, security interests, claims, restrictions or encumbrances of any kind (collectively, “Liens”) except
Liens permitted under, or contemplated by, any indenture, credit agreement, intercreditor agreement security agreement, mortgage, deed
of trust to which the Company or any of its subsidiaries is a party related to outstanding secured indebtedness or available revolving
credit facility (including without limitation any Liens granted or permitted under such facility for the benefit of any derivatives counterparties
under the agreements entered into with respect to such indebtedness or credit facility), of the Company or any of its subsidiaries, which
indebtedness or credit facility is described in the Registration Statement, the General Disclosure Package or the Prospectus; and, to
the extent material to the business and operations of the Company and its subsidiaries, taken as a whole, all assets held under lease
by the Company and its subsidiaries, are held by them under valid, subsisting and enforceable leases, with such exceptions that do not
interfere with the use made of such properties and proposed to be made of such property and buildings by the Company or any of its subsidiaries.

 

(2)            All
material property, options, leases, concessions, claims or other interests in mineral properties and rights for exploration and exploitation,
extraction and other mineral property rights in which the Company or any of its subsidiaries holds an interest or right (collectively,
the “Mineral Rights”) are completely and accurately described in the Technical Reports as required by applicable law.
The Company and its subsidiaries are the legal and/or beneficial owners or holders of such Mineral Rights as described in the Registration
Statement, the General Disclosure Package or the Prospectus. The Mineral Rights are in good standing and are valid and enforceable and
free and clear of any Liens, other than so as to not materially interfere with the current use made by the Company or any of its subsidiaries
of such Mineral Rights, and no royalty is payable in respect of any of them, in each case, other than as described in the Registration
Statement, General Disclosure Package or the Prospectus.

 

    

     

    

 

(t)            [Reserved].

 

(u)          
[Reserved].

 

(v)            Investment
Company Act. The Company is not and, after giving effect to the offering and sale of the Shares and the application of the proceeds
thereof as described in the Registration Statement, General Disclosure Package or the Prospectus, will not be an “investment company”
as defined in the Investment Company Act of 1940, as amended.

 

(w)           Environmental
Laws. The Company and its subsidiaries (i) are in compliance with all applicable foreign, federal, state and local laws and
regulations relating to protection of workplace health and safety, the environment, hazardous or toxic substances, or wastes, pollutants
or environmental contaminants (“Environmental Laws”), (ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all
terms and conditions of any such permit, license or approval, except where such noncompliance with Environmental Laws, failure to receive
required permits, licenses or other approvals or failure to comply with the terms and conditions of such permits, licenses or approvals
would not, singly or in the aggregate, have a Material Adverse Effect, whether or not arising from transactions in the ordinary course
of business. Except as would not have a Material Adverse Effect, neither the Company nor its subsidiaries have been named as a “potentially
responsible party” under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended.

 

There has been no storage,
disposal, generation, manufacture, refinement, transportation, handling or treatment of toxic wastes, medical wastes, hazardous wastes,
hazardous substances or petroleum or fractions thereof by the Company or any of its subsidiaries (or, to the knowledge of the Company,
any of their predecessors in interest) at, upon or from any of the property now or previously owned or leased by the Company or its subsidiaries
in violation of any applicable Environmental Law or which would require remedial action under any applicable Environmental Law, except
for any violation or remedial action which would not have, or could not be reasonably likely to have, singly or in the aggregate with
all such violations and remedial actions, a Material Adverse Effect; and there has been no material spill, discharge, leak, emission,
injection, escape, dumping or release of any kind onto such property or into the environment surrounding such property of any toxic wastes,
medical wastes, solid wastes, hazardous wastes, hazardous substances or petroleum or fractions thereof due to or caused by the Company
or any of its subsidiaries or any person acting on their behalf, except for any such spill, discharge, leak, emission, injection, escape,
dumping or release which would not have or would not be reasonably likely to have, singly or in the aggregate with all such spills, discharges,
leaks, emissions, injections, escapes, dumpings and releases, a Material Adverse Effect. The terms “hazardous wastes”, “toxic
wastes”, “hazardous substances” and “medical wastes” shall have the meanings specified in applicable Environmental
Laws

 

    

     

    

 

(x)             Registration
Rights. Except as described in, or filed as an exhibit to, the Registration Statement, the General Disclosure Package or the Prospectus
(or any document incorporated by reference therein), there are no persons with registration rights or other similar rights to have any
securities registered pursuant to the Registration Statement or otherwise registered by the Company under the 1933 Act.

 

(y)            Related
Party Transactions. No transaction has occurred between or among the Company, any of its subsidiaries and their affiliates, officers
or directors or any affiliate or affiliates of any such officer or director that is required to have been described under applicable
securities laws in the Company’s filings under the 1934 Act and is not so described.

 

(z)             Accounting
Controls and Disclosure Controls. (i) The Company has established and maintains disclosure controls and procedures (as such
term is defined in Rule 13a-15(e) under the 1934 Act); (ii) such disclosure controls and procedures are designed to ensure
that information required to be disclosed by the Company in the reports that the Company will file or submit under the 1934 Act is recorded,
processed, summarized and reported, within the time periods specified in the Commission’s rules and forms, and are designed
to ensure that information required to be disclosed by the Company in the reports that it will file or submit under the 1934 Act is accumulated
and communicated to the Company’s management, including the Company’s principal executive and principal financial officers,
or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure; and (iii) except
as described in the Registration Statement, the General Disclosure Package or the Prospectus, such disclosure controls and procedures
are effective in all material respects to perform the functions for which they were established. Except as described in the Registration
Statement, the General Disclosure Package or the Prospectus, the Company and its subsidiaries’ internal controls over financial
reporting are effective at a reasonable assurances level and the Company and its subsidiaries are not aware of any material weakness
or significant deficiencies in their internal controls over financial reporting.

 

The Company and its consolidated
subsidiaries employ disclosure controls and procedures that are designed to ensure that information required to be disclosed by the Company
in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified
in the Commission’s rules and forms, and is accumulated and communicated to the Company’s management, including its
principal executive officer or officers and principal financial officer or officers, as appropriate, to allow timely decisions regarding
disclosure.

 

(aa)          S-3
Eligibility. (i) At the time of filing the Registration Statement and (ii) at the time of the most recent amendment thereto
for the purposes of complying with Section 10(a)(3) of the 1933 Act (whether such amendment was by post-effective amendment,
incorporated report filed pursuant to Section 13(a) or 15(d) of the 1934 Act or form of prospectus), the Company met the
then applicable requirements for use of Form S-3 under the 1933 Act (including General Instruction I.B.1 thereto).

 

    

     

    

 

(bb)          No
Commissions. Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any person
(other than as contemplated by this Agreement or any Terms Agreement) that would give rise to a valid claim against the Company or any
of its subsidiaries or the Agents for a brokerage commission, finder’s fee or like payment in connection with the offering and
sale of the Shares.

 

(cc)           Deemed
Representation. Any certificate signed by any officer of the Company delivered to the Agents pursuant to or in connection with this
Agreement or any Terms Agreement shall be deemed a representation and warranty by the Company to the Agents as to the matters covered
thereby as of the date or dates indicated in such certificate.

 

(dd)          Compliance
with the Sarbanes-Oxley Act. There is and has been no failure on the part of the Company or any of the Company’s directors
or officers, in their capacities as such, to comply in all material respects with any provision of the Sarbanes-Oxley Act of 2002 and
the rules and regulations promulgated in connection therewith, including Section 402 related to loans and Sections 302 and
906 related to certifications.

 

(ee)           Payment
of Taxes. The Company and its subsidiaries have filed all federal, state and local income and franchise Tax returns required to be
filed through the date hereof and have paid all Taxes due thereon, and no Tax deficiency has been determined adversely to the Company
or any of its subsidiaries which has had (nor does the Company or any of the Guarantors have any knowledge of any Tax deficiency which,
if determined adversely to the Company or any of its subsidiaries, might have) a Material Adverse Effect. For purposes of this Agreement,
the term “Tax” and “Taxes” shall mean all federal, state, local and foreign taxes, and other assessments
of a similar nature (whether imposed directly or through withholding), including, without limitation, any interest, additions to tax,
or penalties applicable thereto.

 

(ff)            Accurate
Books and Records. The Company (i) makes and keeps accurate books and records and (ii) maintains internal accounting controls
which provide reasonable assurance that (A) transactions are executed in accordance with management’s authorization, (B) transactions
are recorded as necessary to permit preparation of its financial statements and to maintain accountability for its assets, (C) access
to its assets is permitted only in accordance with management’s authorization and (D) the reported accountability for its
assets is compared with existing assets at reasonable intervals.

 

(gg)          ERISA
Compliance. The Company is in compliance in all material respects with all presently applicable provisions of the Employee Retirement
Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”);
no “reportable event” (as defined in Section 4043 of ERISA) has occurred with respect to any “pension plan”
(as defined in Section 3 of ERISA) for which the Company would have any liability; the Company has not incurred and does not expect
to incur liability under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan”
or (ii) Section 4975 of the Internal Revenue Code of 1986, as amended, including the regulations and published interpretations
thereunder (the “Code”); and each “pension plan” for which the Company would have any liability that is
intended to be qualified under Section 401(a) of the Code is so qualified (except as would not result in any material liability
of the Company or its subsidiaries) and nothing has occurred, to the Company’s knowledge, whether by action or by failure to act,
which would cause the loss of such qualification.

 

    

     

    

 

(hh)         Insurance.
The Company and its subsidiaries carry, or are covered by, insurance by reputable insurers in such amounts and covering such risks as
is reasonably adequate for the conduct of the business operated by them and the value of their properties and as is customary for companies
in the same industry in which the Company and its subsidiaries operate. Neither the Company nor any subsidiary has received written notice
from any insurer or agent of such insurer that substantial capital improvements or other expenditures will have to be made in order to
continue such insurance; and all such insurance is outstanding and duly in force on the date hereof and will be outstanding and duly
in force at the Commencement Time, at each Applicable Time and at each Settlement Date.

 

(ii)            Statistical
and Market-Related Data. Any statistical and market-related data included in the Registration Statement, the General Disclosure Package
and the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate, and, where required, the
Company has obtained the written consent to the use of such data from such sources.

 

(jj)            Cybersecurity.
Except in each case as would not reasonably be expected to have a Material Adverse Effect, (i)(A) there has been no security breach
or incident, unauthorized access or disclosure or other compromise of or relating to any of the Company’s or its subsidiaries’
information technology and computer systems, networks, hardware, software, data and databases (including the data and information of
their respective customers, employees, suppliers, vendors and any third-party data maintained, processed or stored by the Company and
its subsidiaries, and any such data processed or stored by third parties on behalf of the Company and its subsidiaries), equipment or
technology (collectively, “IT Systems and Data”) and (B) the Company and its subsidiaries have not been notified
of, and have no knowledge of any event or condition that would reasonably be expected to result in, any security breach or incident,
unauthorized access or disclosure or other compromise to their IT Systems and Data; (ii) the Company and its subsidiaries are presently
in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or
governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems
and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation or modification; and (iii) the
Company and its subsidiaries have implemented appropriate controls, policies, procedures and technological safeguards to maintain and
protect the integrity, continuous operation, redundancy and security of their IT Systems and Data reasonably consistent with industry
standards and practice, or as required by applicable regulatory standards.

 

(kk)          Foreign
Corrupt Practices Act. Neither the Company nor any of its subsidiaries, nor, to the knowledge of the Company, any director, officer,
agent, employee, affiliate or other person acting on behalf of the Company or any of its subsidiaries has, in the course of its actions
for, or on behalf of, the Company or any of its subsidiaries (i) used any corporate funds for any unlawful contribution, gift, entertainment
or other unlawful expenses relating to political activity; (ii) made or taken any act in furtherance of an offer, promise, or authorization
of any direct or indirect unlawful payment or benefit to any foreign or domestic government official or employee, including of any government-owned
or government-controlled entity or public international organization, or any political party, party official, or candidate for political
office; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended (the “FCPA”),
the UK Bribery Act 2010, the Foreign Corrupt Practices Act (Canada) or Corruption of Foreign Public Officials Act (Canada), or any other
applicable anti-bribery or anti-corruption law; or (iv) made, offered, authorized, requested, or taken an act in furtherance of
any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment or benefit. The Company and its subsidiaries
and, to the knowledge of the Company, the Company’s affiliates have conducted their respective businesses in compliance with the
FCPA and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure,
continued compliance therewith.

 

    

     

    

 

(ll)            Money
Laundering Laws. The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable
financial recordkeeping and reporting requirements and the money laundering statutes and the rules and regulations thereunder and
any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the
 “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to
the best knowledge of the Company, threatened in writing.

 

(mm)        Sanctions.
Neither the Company nor any of its subsidiaries nor, to the knowledge of the Company, any agent, affiliate or representative of the Company
or any of its subsidiaries (i) is, or is controlled or 50% or more owned in the aggregate by or is acting on behalf of, one or more
individuals or entities that are currently the subject of any sanctions administered or enforced by the United States (including any
administered or enforced by the Office of Foreign Assets Control of the U.S. Department of the Treasury, the U.S. Department of State,
or the Bureau of Industry and Security of the U.S. Department of Commerce), the United Nations Security Council, the European Union,
a member state of the European Union (including sanctions administered or enforced by His Majesty’s Treasury of the United Kingdom),
under the Special Economic Measures Act (Canada) or other relevant sanctions authority (collectively, “Sanctions”
and such persons, “Sanctioned Persons” and each such person, a “Sanctioned Person”), (ii) is
located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions that broadly prohibit
dealings with that country or territory, including, without limitation, Cuba, Iran, North Korea, Syria, Belarus, the so-called Donetsk
People’s Republic, the so-called Luhansk People’s Republic, the Crimea region of Ukraine and other Covered Region (as defined
in the Executive Order 14065) of Ukraine identified pursuant to the Executive Order 14065 (collectively, “Sanctioned Countries”
and each, a “Sanctioned Country”) or (iii) will, directly or indirectly, use the proceeds of this offering, or
lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other individual or entity in
any manner that would result in a violation of any Sanctions by, or could result in the imposition of Sanctions against, any individual
or entity (including any individual or entity participating in the offering, whether as underwriter, advisor, investor or otherwise).

 

(nn)         No
Distribution from British Columbia. All of the trading in the Company’s securities occurs on the Nasdaq. The Company does not
have any significant assets located in British Columbia or derive any revenues from operations in British Columbia.

 

    

     

    

 

(oo)         Regulatory
Compliance.

 

(1)  Except as otherwise
set forth in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any of its subsidiaries
has held any material Regulatory Permits and no such Regulatory Permits are or have been necessary for the Company or any of its subsidiaries
to conduct their respective businesses. Except as otherwise set forth in the Registration Statement, the General Disclosure Package and
the Prospectus, to the Company’s knowledge, no governmental agency (including the ISA or sponsoring state) has stated or otherwise
indicated that a material Regulatory Permit is required for the Company or any of its subsidiaries to conduct their respective businesses.

 

(2)  There are no actions,
suits or proceedings or, to the Company’s knowledge, threatened against the Company or any of its subsidiaries related to compliance
with UNCLOS Laws and Regulations, including by a governmental agency (including the ISA or sponsoring state). The Company and its subsidiaries
are in material compliance with UNCLOS Laws and Regulations. Each of the Company and its subsidiaries currently have the use and benefit
of all contracts executed in connection with their obligations under the UNCLOS Laws and Regulations.

 

As used in this Section 1(oo),
the following terms have the defined meanings:

 

“ISA”
means the International Seabed Authority.

 

“Regulatory Permits”
means all Permits granted by ISA or sponsoring state to the Company or any of its subsidiaries.

 

“UNCLOS Laws and
Regulations” means the United Nations Convention for the Law of the Sea (“UNCLOS”) and all related laws,
conventions, international agreements, and implementing agreements, including (a) the Agreement relating to the Implementation of
Part XI of UNCLOS, (b) the laws administered by the ISA, and (c) any applicable customary international law.

 

(pp)         Technical
Reports. Each of the Technical Reports has been prepared in accordance with the applicable requirements of Regulation S-K, including
the industry guidelines in Subpart 1300 thereof.

 

Section 2. Sale and
Delivery of Shares.

 

(a)            Subject
to the terms and conditions set forth herein, the Company agrees to issue and sell exclusively through an Agent (the “Designated
Agent”) acting as sales agent or directly to an Agent acting as principal from time to time, and the Designated Agent agrees
to use its commercially reasonable efforts to sell as sales agent for the Company, the Shares. Sales of the Shares, if any, through a
Designated Agent acting as sales agent or directly to an Agent acting as principal may be made in negotiated transactions or transactions
that are deemed to be “at the market offerings” as defined in Rule 415 under the 1933 Act, including sales made directly
on the Nasdaq, or sales made to or through a market maker other than on an exchange or through an electronic communications network.

 

    

     

    

 

(b)            The
Shares are to be sold on a daily basis or otherwise as shall be agreed to by the Company and the Designated Agent on any day that (A) is
a trading day for the Nasdaq (other than a day on which the Nasdaq is scheduled to close prior to its regular weekday closing time, each,
a “Trading Day”), (B) that the Company has satisfied its obligations under Section 6 of this Agreement and
(C) that the Company has instructed an Agent to make such sales. For the avoidance of doubt, the foregoing limitation shall not
apply to sales solely to employees or securityholders of the Company or its subsidiaries, or to a trustee or other person acquiring such
securities for the accounts of such persons in which such the Designated Agent is acting for the Company in a capacity other than as
the Designated Agent under this Agreement. On any Trading Day, the Company, through its Chief Executive Officer or Chief Financial Officer
(each, an “Authorized Representative”), may instruct the Designated Agent by telephone (confirmed promptly by email
by any of the Authorized Representatives and shall be addressed to each of the individuals from the Designated Agent set forth on Schedule
1 which confirmation will be promptly acknowledged by the Designated Agent) as to the maximum number of Shares to be sold by the Designated
Agent on such day (in any event not in excess of the number available for issuance under the Prospectus and the currently effective Registration
Statement) and the minimum price per Share at which such Shares may be sold. Subject to the terms and conditions hereof, the Designated
Agent shall use its commercially reasonable efforts to sell as sales agent all of the Shares so designated by the Company. The Company
and the Designated Agent each acknowledge and agree that (A) there can be no assurance that the Designated Agent will be successful
in selling the Shares, (B) the Designated Agent will incur no liability or obligation to the Company or any other person or entity
if it does not sell Shares for any reason other than a failure by the Designated Agent to use its commercially reasonable efforts consistent
with its normal trading and sales practices and applicable law and regulations to sell such Shares as required by this Agreement, and
(C) the Designated Agent shall be under no obligation to purchase Shares on a principal basis except as otherwise specifically agreed
by either Agent and the Company pursuant to a Terms Agreement. In the event of a conflict between the terms of this Agreement and the
terms of a Terms Agreement, the terms of such Terms Agreement will control.

 

(c)            Notwithstanding
the foregoing, the Company shall not authorize the issuance and sale of, and the Designated Agent as sales agent shall not be obligated
to use its commercially reasonable efforts to sell, any Shares pursuant to this Agreement (i) at a price lower than the minimum
price therefor authorized from time to time, or (ii) in a number in excess of the number or maximum aggregate dollar value of Shares,
in each case, authorized from time to time to be issued and sold under this Agreement, in each case, by the Company’s board of
directors, or a duly authorized committee thereof, or any individual to whom such authority has been duly and properly delegated by the
Company’s board of directors or a duly authorized committee thereof, and notified to the Designated Agent in writing. The Agents
shall not make any sales or offers to sell Shares before the Commencement Time. In addition, the Company may, upon notice to the Designated
Agent, suspend the offering of the Shares, or the Agents may, upon notice to the Company, suspend the offering of the Shares with respect
to which the Designated Agent is acting as sales agent, for any reason and at any time; provided, however, that such suspension
or termination shall not affect or impair the parties’ respective obligations with respect to the Shares sold hereunder prior to
the giving of such notice. Any notice given pursuant to the preceding sentence, and the Company’s notice of the Commencement Time,
may be given by telephone (confirmed promptly by telecopy or email, which confirmation will be promptly acknowledged).

 

    

     

    

 

(d)            The
gross sales price of any Shares sold pursuant to this Agreement by the Designated Agent acting as sales agent of the Company shall be
the market price prevailing at the time of sale for the Common Shares sold by the Designated Agent on the Nasdaq or otherwise, at prices
relating to prevailing market prices or at negotiated prices. The compensation payable to the Designated Agent for sales of Shares with
respect to which the Designated Agent acts as sales agent shall be equal to up to 3.0% of the gross sales price of the Shares for amounts
of Shares sold pursuant to this Section 2(d). The Company may sell Shares to an Agent, acting as principal, at a price agreed upon
with such Agent at the relevant Applicable Time and pursuant to a separate Terms Agreement, in which case, for the avoidance of doubt,
the foregoing rate shall not apply. The remaining proceeds after the foregoing compensation payable to the Agents and after further deduction
for any transaction fees imposed by any governmental, regulatory or self-regulatory organization in respect of such sales (the “Transaction
Fees”), shall constitute the net proceeds to the Company for such Shares (the “Net Proceeds”). Such Agent
shall notify the Company as promptly as practicable if any deduction referenced in the preceding sentence will be required. The Agents
shall provide statements to the Company from time to time reflecting the gross sales price of Shares, Agent compensation and any Transaction
Fees.

 

(e)            If
acting as a sales agent hereunder, the Designated Agent shall provide written confirmation to the Company following the close of trading
on the Nasdaq, each day in which Shares are sold under this Agreement setting forth the number of Shares sold on such day, the aggregate
gross sales proceeds of the Shares, the Net Proceeds to the Company and the compensation payable by the Company to such Designated Agent
with respect to such sales.

 

(f)             Under
no circumstances shall the aggregate offering price or number, as the case may be, of Shares sold pursuant to this Agreement and any
Terms Agreement exceed the aggregate offering price or number, as the case may be, of Common Shares (i) set forth in the preamble
paragraph of this Agreement, (ii) available for issuance under the Prospectus and the then currently effective Registration Statement
or (iii) authorized from time to time to be issued and sold under this Agreement or any Terms Agreement by the Company’s board
of directors, or a duly authorized committee thereof, and notified to the Designated Agent in writing. In addition, under no circumstances
shall any Shares with respect to which the Designated Agent acts as sales agent be sold at a price lower than the minimum price therefor
authorized from time to time by the Company’s board of directors, or a duly authorized committee thereof, and notified to the Designated
Agent in writing.

 

(g)            Settlement
for sales of Shares pursuant to this Section 2(g) will occur on the second Business Day that is also a Trading Day following
the trade date on which such sales are made, unless another date shall be agreed to by the Company and the Designated Agent (each such
day, a “Settlement Date”). On each Settlement Date, the Shares sold through the Designated Agent for settlement on
such date shall be delivered by the Company to the Designated Agent against payment of the Net Proceeds from the sale of such Shares.
Settlement for all Shares shall be effected by book-entry delivery of Shares to the Designated Agent’s account at The Depository
Trust Company against payments by the Designated Agent of the Net Proceeds from the sale of such Shares in same day funds delivered to
an account designated by the Company. If the Company shall default on its obligation to deliver Shares on any Settlement Date, the Company
shall (i) indemnify and hold the Designated Agent harmless against any loss, claim or damage arising from or as a result of such
default by the Company and (ii) pay the Designated Agent any commission to which it would otherwise be entitled absent such default.

 

    

     

    

 

(h)            The
Agents hereby covenant and agree not to make any sales of the Shares on behalf of the Company, pursuant to this Section 2, other
than as shall be permitted by law and agreed upon by the Company and the Agents.

 

(i)            
At each Applicable Time, Settlement Date and Representation Date, the Company shall be deemed to have affirmed each representation and
warranty contained in this Agreement, modified as necessary to relate to the Registration Statement and the Prospectus as amended as
of such date. Any obligation of the Designated Agent to use its commercially reasonable efforts to sell the Shares on behalf of the Company
as sales agent shall be subject to the continuing accuracy of the representations and warranties of the Company herein, to the performance
by the Company of its obligations hereunder and to the continuing satisfaction of the additional conditions specified in Section 6
of this Agreement.

 

(j)             Notwithstanding
any other provision of this Agreement, the Company and the Agents agree that no sales of Shares shall take place, and the Company shall
not request the sale of any Shares that would be sold, and the Agents shall not be obligated to sell, during any period in which the
Company is in possession of material non-public information. The Company agrees that any offer to sell, any solicitation of an offer
to buy, or any sales of Shares pursuant to this Agreement shall only be effected by or through an Agent, and only a single Agent, on
any single given date, and in no event shall the Company request that more than one Agent sell securities on the same day.

 

(k)            The
Agents acknowledge that the Company is not a reporting issuer in any Province or Territory of Canada and the Common Shares have not been
registered or qualified by prospectus for distribution in any Province or Territory of Canada, and are not eligible for sale or resale
in Canada. The Agents agree that it will not sell, offer to sell or solicit offers to purchase Common Shares in Canada, or to or from
persons resident in any Province or Territory of Canada or to or from any person acquiring such Common Shares for the benefit of another
person resident in any Province or Territory of Canada, including under a Terms Agreement. The Agents shall not sell, offer to sell or
solicit offers to purchase Common Shares so as to require registration thereof or the filing of a prospectus or similar document with
respect thereto under the laws of any jurisdiction other than the United States.

 

Section 3. Covenants.
The Company agrees with the Agents:

 

(a)            During
any period when the delivery of a prospectus is required in connection with the offering or sale of Shares pursuant to this Agreement
(whether physically or through compliance with Rule 153 or 172, or in lieu thereof, a notice referred to in Rule 173(a) under
the 1933 Act), to make no further amendment or any supplement to the Registration Statement or the Prospectus (other than any amendment
or supplement which does not relate to the sale of the Shares and not including any reports or documents and any preliminary or definitive
proxy or information statement required to be filed by the Company with the Commission in order to comply with the 1934 Act) unless the
Company has furnished to the Agents a copy for their review a reasonable time period prior to filing and will not file any such proposed
amendment or supplement to which the Agents reasonably object. At the Commencement Time, the Company will have filed the Prospectus,
in a form approved by the Agents, with the Commission pursuant to the applicable paragraph of Rule 424(b) by the Commencement
Time and will cause any supplement to the Prospectus to be properly completed, in a form approved by the Agents, and will file such supplement
with the Commission pursuant to the applicable paragraph of Rule 424(b) within the time period prescribed thereby and will
provide evidence satisfactory to the Agents of such timely filing. The Company will promptly advise the Agents (i) when the Prospectus,
and any supplement thereto, shall have been filed (if required) with the Commission pursuant to Rule 424(b), (ii) when, during
any period when the delivery of a prospectus (whether physically, deemed to be delivered pursuant to Rule 153 or through compliance
with Rule 172 or any similar rule) is required under the 1933 Act in connection with the offering or sale of the Shares, any amendment
to the Registration Statement shall have been filed or become effective, (iii) of any request by the Commission or its staff for
any amendment of the Registration Statement, or for any supplement to the Prospectus or for any additional information, (iv) of
the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any notice objecting
to its use or the institution or threatening of any proceeding for that purpose and (v) of the receipt by the Company of any notification
with respect to the suspension of the qualification of the Shares for sale in any jurisdiction or the institution or threatening of any
proceeding for such purpose. The Company will use its best efforts to prevent the issuance of any such stop order or the occurrence of
any such suspension or objection to the use of the Registration Statement and, upon such issuance, occurrence or notice of objection,
to obtain as soon as possible the withdrawal of such stop order or relief from such occurrence or objection, including, if necessary,
by filing an amendment to the Registration Statement or a new registration statement, at the Company’s expense (references herein
to the Registration Statement shall include any such amendment or new registration statement).

 

    

     

    

 

(b)            Promptly
from time to time to take such action as the Agents may reasonably request to qualify the Shares for offering and sale under the securities
laws of such jurisdictions as the Agents may request and to comply with such laws so as to permit the continuance of sales and dealings
therein in such jurisdictions for as long as may be necessary to complete the sale of the Shares, provided that in connection therewith
the Company shall not be required to (i) qualify as a foreign corporation or to file a general consent to service of process in
any jurisdiction or (ii) qualify the Shares in any jurisdiction other than the United States of America and any state therein; and
to promptly advise the Agents of the receipt by the Company of any notification with respect to the suspension of the qualification of
the Shares for offer or sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose.

 

(c)             During
any period when the delivery of a prospectus is required (whether physically or through compliance with Rules 153 or 172, or in
lieu thereof, a notice referred to in Rule 173(a) under the 1933 Act) in connection with the offering or sale of Shares, the
Company will make available to the Agents, as soon as practicable after the Commencement Time, and thereafter from time to time furnish
to the Agents, electronic copies of the most recent Prospectus in such quantities and at such locations as the Agents may reasonably
request for the purposes contemplated by the 1933 Act.

 

(d)            During
any period when the delivery of a prospectus is required (whether physically or through compliance with Rules 153 or 172, or in
lieu thereof, a notice referred to in Rule 173(a) under the 1933 Act) in connection with the offering or sale of Shares, and
if at such time any event shall have occurred as a result of which the Prospectus as then amended or supplemented would include an untrue
statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made when such Prospectus is delivered, not misleading, or, if for any other reason it shall be necessary
during such same period to amend or supplement the Prospectus or to file under the 1934 Act any document incorporated by reference in
the Prospectus in order to comply with the 1933 Act or the 1934 Act, to notify the Agents and to file such document and to prepare and
furnish without charge to the Agents as many written and electronic copies as the Agents may from time to time reasonably request of
an amended Prospectus or a supplement to the Prospectus which will correct such statement or omission or effect such compliance.

 

    

     

    

 

(e)            To
make generally available to its securityholders as soon as practicable an earnings statement of the Company and its subsidiaries (which
need not be audited) complying with Section 11(a) of the 1933 Act and the rules and regulations of the Commission thereunder
(including, at the option of the Company, Rule 158).

 

(f)             To
use the Net Proceeds received by it from the sale of the Shares pursuant to this Agreement and any Terms Agreement in the manner specified
in the General Disclosure Package.

 

(g)            In
connection with the offering and sale of the Shares, the Company will file with the Nasdaq all documents and notices, and make all certifications,
required by the Nasdaq of companies that have securities that are listed or quoted on the Nasdaq and will maintain such listings or quotations.

 

(h)            To
not take, directly or indirectly, and to cause its affiliates to refrain from taking, any action designed to cause or result in, or that
has constituted or might reasonably be expected to constitute, under the 1934 Act or otherwise, the stabilization or manipulation of
the price of any securities of the Company to facilitate the sale or resale of the Shares.

 

(i)             At
each Applicable Time, each Settlement Date and each Representation Date, the Company shall be deemed to have affirmed each representation,
warranty, covenant and other agreement contained in this Agreement or any Terms Agreement (except that such representations, warranties,
covenants and other agreements shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented
relating to such Shares).

 

(j)             In
each Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed by the Company in respect of any quarter in which sales
of Shares were made by or through the Agents under this Agreement or any Terms Agreement, the Company shall set forth with regard to
such quarter the number of Shares sold through the Agents under this Agreement or any Terms Agreement and the Net Proceeds received by
the Company with respect to sales of Shares pursuant to this Agreement or any Terms Agreement.

 

    

     

    

 

(k)            Upon
the Commencement Time (and upon any subsequent recommencement of the offering of the Shares under this Agreement following the termination
or a suspension of sales hereunder) and each time after the Commencement Time that (i) the Shares are delivered to an Agent as principal
pursuant to a Terms Agreement, (ii) the Registration Statement or the Prospectus shall be amended or supplemented (other than (1) by
an amendment or supplement providing solely for the determination of the terms of the Shares, (2) in connection with the filing
of a prospectus supplement filed pursuant to Section 3(a) hereof, (3) any amendment or supplement effected by the filing
with the Commission of any document incorporated by reference therein (other than any current reports on Form 8-K that contain financial
statements, supporting schedules or other financial data, including any current report on Form 8-K under Item 2.02 of such form
that is considered “filed” instead of “furnished” under the 1934 Act) or (4) by a prospectus supplement
relating to the offering of other securities (including, without limitation, other Common Shares)), (iii) the Company shall file
an Annual Report on Form 10-K or a Quarterly Report on Form 10-Q, or (iv) otherwise as the Agents may reasonably request
(such Commencement Time or recommencement date and each such date referred to in clauses (i), (ii), (iii), and (iv), excluding any date
occurring during the suspension of sales hereunder, a “Representation Date”), the Company will furnish or cause to
be furnished within two (2) Business Days thereafter to the Agents a certificate in a form reasonably satisfactory to the Agents
to the effect that the statements contained in the certificate referred to in Section 6(e) of this Agreement which were last
furnished to the Agents are true and correct at the time of such Representation Date, as though made at and as of such time (except that
such statements shall be deemed to relate to the Registration Statement, the General Disclosure Package and the Prospectus as amended
and supplemented to such time) or, in lieu of such certificate, a certificate of the same tenor as the certificate referred to in said
Section 6(e), but modified as necessary to relate to the Registration Statement and the Prospectus as amended and supplemented,
or to the document incorporated by reference into the Prospectus, to the time of delivery of such certificate. The requirement to provide
a certificate under this Section 3(k) shall be waived for any Representation Date occurring at a time at which no instruction
by the Company to the Agents to sell Shares under this Agreement is in effect, which waiver shall continue until the earlier to occur
of the date the Company delivers an instruction to the Agents to sell Shares pursuant to Section 2(a) hereof (which for such
calendar quarter shall be considered a Representation Date) and the next occurring Representation Date for which no such waiver is made;
provided, however, that the Company may elect, in its sole discretion, to provide a certificate under this Section 3(k) notwithstanding
the fact that no instruction by the Company to the Agents to sell Shares under this Agreement is in effect. Notwithstanding the foregoing,
if the Company subsequently decides to sell Shares following a Representation Date when the Company relied on such waiver and did not
provide the Agents with a certificate under this Section 3(k), then before the Company delivers an instruction pursuant to Section 2(a) or
the Agents sell any Shares, the Company shall provide the Agents with a certificate of the same tenor as the certificate referred to
in Section 6(f) of this Agreement.

  

(l)             Upon
the Commencement Time (and upon the recommencement of the offering of the Shares under this Agreement following the termination of a
suspension of sales as contemplated herein) and within two (2) Business Days after each Representation Date, the Company will furnish
or cause to be furnished to the Agents the written opinion and letter of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., United
States counsel to the Company (“U.S. Company Counsel”), and opinion of Fasken Martineau DuMoulin LLP, Canadian counsel
to the Company (the “Canadian Company Counsel”) or other counsel reasonably satisfactory to the Agents, dated the
date of effectiveness of such amendment or the date of filing with the Commission of such supplement or other document, as the case may
be, in a form and substance reasonably satisfactory to the Agents, of the same tenor as the opinions and letters referred to in Section 6(c) of
this Agreement, but modified as necessary to relate to the Registration Statement, the General Disclosure Package and the Prospectus
as amended and supplemented, or to the document incorporated by reference into the Prospectus, to the time of delivery of such opinion
and letter or, in lieu of such opinion and letter, counsel last furnishing such letter to the Agents shall furnish such Agents with a
letter substantially to the effect that the Agents may rely on such last opinion and letter to the same extent as though each were dated
the date of such letter authorizing reliance (except that statements in such last letter shall be deemed to relate to the Registration
Statement and the Prospectus as amended and supplemented to the time of delivery of such letter authorizing reliance). The requirement
to provide an opinion and/or letter under this Section 3(l) shall be waived for any Representation Date occurring at a time
at which no instruction by the Company to the Agents to sell Shares under this Agreement is in effect, which waiver shall continue until
the earlier to occur of the date the Company delivers an instruction to the Agents to sell Shares pursuant to Section 2(a) hereof
(which for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date for which no such
waiver is made; provided, however, that each of U.S. Company Counsel and Canadian Company Counsel may elect, in its sole discretion,
to provide an opinion and/or letter under this Section 3(l) notwithstanding the fact that no instruction by the Company to
the Agents to sell Shares under this Agreement is in effect. Notwithstanding the foregoing, if the Company subsequently decides to sell
Shares following a Representation Date when the Company relied on such waiver and each of U.S. Company Counsel and Canadian Company Counsel
did not provide the Agents with an opinion and/or letter under this Section 3(l), then before the Company delivers an instruction
pursuant to Section 2(a) or the Agents sell any Shares, each of U.S. Company Counsel and Canadian Company Counsel shall provide
the Agents with an opinion and/or letter of the same tenor as the opinion and/or letter referred to in Section 6(c) of this
Agreement.

 

    

     

    

 

(m)           Upon
the Commencement Time (and upon the recommencement of the offering of the Shares under this Agreement following the termination of a
suspension of sales as contemplated herein) and within two (2) Business Days after each time after the Commencement Time that (i) the
Registration Statement or the Prospectus shall be amended or supplemented to include additional amended financial information, (ii) the
Shares are delivered to an Agent as principal pursuant to a Terms Agreement, (iii) the Company files with the Commission a Quarterly
Report on Form 10-Q or an Annual Report on Form 10-K, or (iv) at the Agents’ request and upon reasonable advance
notice to the Company (such recommencement date and each such date referred to in (i), (ii), (iii) and (iv) above, an “Auditor
Representation Date”), there is filed with the Commission any document which contains financial information incorporated by
reference into the Prospectus, the Company will cause Ernst & Young, LLP, or other independent accountants reasonably satisfactory
to the Agents (the “Accountants”), to furnish to the Agents a letter, dated the date of effectiveness of such amendment
or the date of filing of such supplement or other document with the Commission, as the case may be, in form reasonably satisfactory to
the Agents, of the same tenor as the letter referred to in Section 6(d) hereof, but modified as necessary to relate to the
Registration Statement, the General Disclosure Package and the Prospectus, as amended and supplemented, or to the document incorporated
by reference into the Prospectus, to the date of such letter. The requirement to provide a letter or letters under this Section 3(m) shall
be waived for any Auditor Representation Date occurring at a time at which no instruction by the Company to the Agents to sell Shares
under this Agreement is in effect, which waiver shall continue until the earlier to occur of the date the Company delivers an instruction
to the Agents to sell Shares pursuant to Section 2(a) hereof (which for such calendar quarter shall be considered an Auditor
Representation Date) and the next occurring Auditor Representation Date for which no such waiver is made; provided, however, that
the Company may elect, in its sole discretion, to cause the Accountants to provide the Agents a letter or letters under this Section 3(m) notwithstanding
the fact that no instruction by the Company to the Agents to sell Shares under this Agreement is in effect. Notwithstanding the foregoing,
if the Company subsequently decides to sell Shares following an Auditor Representation Date when the Company relied on such waiver and
did not cause the Accountants to provide the Agents with a letter or letters under this Section 3(m), then before the Company delivers
an instruction pursuant to Section 2(a) or the Agents sell any Shares, the Company shall cause the Accountants to furnish the
Agents a letter or letters, dated the date of the Auditor Representation Date, in form reasonably satisfactory to the Agents, of the
same tenor as the letter referred to in Section 6(d) of this Agreement but modified to relate to the Registration Statement
and the Prospectus, as amended and supplemented to the date of such letter.

 

    

     

    

 

(n)            [Reserved].

 

(o)            The
Company consents to the Agents trading in the Common Shares for Agents’ own accounts and for the accounts of their clients at the
same time as sales of Shares occur pursuant to this Agreement or any Terms Agreement.

 

(p)            If,
to the knowledge of the Company, all filings required by Rule 424 in connection with this offering shall not have been made or the
representations in Section 1(a) shall not be true and correct on the applicable Settlement Date, the Company will offer to
any person who has agreed to purchase Shares from the Company as the result of an offer to purchase solicited by the Agent the right
to refuse to purchase and pay for such Shares.

 

(q)            Within
two (2) Business Days after each Representation Date, the Company will conduct a due diligence session, in form and substance satisfactory
to the Agents, which shall include representatives of the management and the independent accountants of the Company. The Company will
cooperate timely with any reasonable due diligence review conducted by or on behalf of the Agents from time to time in connection with
the transactions contemplated hereby or in any Terms Agreement, including, without limitation, and upon reasonable notice providing information
and making available documents and appropriate corporate officers, during regular business hours and at the Company’s principal
offices, as the Agents may reasonably request.

 

(r)             The
Company will not, without (i) giving the Agents at least three (3) Business Days’ prior written notice specifying the
nature of the proposed sale and the date of such proposed sale and (ii) the Agents suspending activity under this program for such
period of time as requested by the Company or as deemed appropriate by the Agents in light of the proposed sale, (A) offer, pledge,
announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell,
grant any option, right or warrant for the sale of, lend or otherwise transfer or dispose of, directly or indirectly, any Common Shares
or securities convertible into or exchangeable or exercisable for or repayable with Common Shares, or file any registration statement
under the 1933 Act with respect to any of the foregoing (other than a shelf registration statement under Rule 415 under the 1933
Act, a registration statement on Form S-8, or any post-effective amendment to the Registration Statement or any other existing registration
statement of the Company) or (B) enter into any swap or other agreement or any transaction that transfers in whole or in part, directly
or indirectly, any of the economic consequence of ownership of the Common Shares, or any securities convertible into or exchangeable
or exercisable for or repayable with Common Shares, whether any such swap or transaction described in clause (A) or (B) above
is to be settled by delivery of Common Shares or such other securities, in cash or otherwise. The foregoing sentence shall not apply
to the Company’s issuance or sale of (i) Common Shares, options to purchase Common Shares, restricted share units, other equity
awards to acquire Common Shares or Common Shares issuable upon the exercise of options or other equity awards, pursuant to any equity
incentive or benefits plan, stock ownership plan or dividend reinvestment plan (but not Common Shares subject to a waiver to exceed plan
limits in its dividend reinvestment plan) of the Company where now in effect or hereafter implemented, (ii) Common Shares issuable
upon conversion of securities or the exercise of warrants, options or other rights in effect or outstanding, and disclosed in filings
by the Company available on the Electronic Data Gathering, Analysis, and Retrieval system or otherwise in writing to the Agents, (iii) Common
Shares or securities convertible into or exchangeable for Common Shares as consideration for mergers, acquisitions, or other business
combinations occurring after the date of this Agreement which are not issued primarily for capital raising purposes and (iv) Common
Shares or securities convertible into or exchangeable for Common Shares (A) in connection with strategic transactions, including
(1) joint ventures, manufacturing, marketing, OEM, sponsored research, collaboration or distribution arrangements or (2) technology
transfer or development arrangements and/or (B) to suppliers or third party service providers in connection with the provision of
goods or services, in each case of this clause (iv) which are not issued primarily for capital raising purposes and (v) the
Shares to be offered and sold through the Agents pursuant to this Agreement or any Terms Agreement.

 

    

     

    

 

(s)            If
immediately prior to the third anniversary (the “Renewal Deadline”) of the initial effective date of the Registration
Statement, any of the Shares remain unsold and the Company desires to sell any of such unsold Shares under the terms of this Agreement,
the Company will, prior to the Renewal Deadline file, if it has not already done so and is eligible to do so, file a new shelf registration
statement relating to the Shares, in a form satisfactory to the Agent, and will use its best efforts to cause such registration statement
to be declared effective within 60 days after the Renewal Deadline. The Company will take all other action necessary or appropriate to
permit the issuance and sale of the Shares to continue as contemplated in the expired registration statement relating to the Shares.
References herein to the Registration Statement shall include such new registration statement.

 

Section 4. Free Writing
Prospectus.

 

(a)            (i)            The
Company represents and agrees that without the prior consent of the Agents, it has not made and will not make any offer relating to the
Shares that would constitute a Free Writing Prospectus; and

 

(ii)            The
Agents represent and agree that, without the prior consent of the Company, they have not made and will not make any offer relating to
the Shares that would constitute a Free Writing Prospectus required to be filed with the Commission.

 

(b)            The
Company has complied and will comply with the requirements of Rule 433 under the 1933 Act applicable to any Issuer Free Writing
Prospectus (including any free writing prospectus identified in Section 4(a) hereof), including timely filing with the Commission
or retention where required and legending.

 

    

     

    

 

Section 5. Payment
of Expenses. The Company covenants and agrees with the Agents that the Company will pay or cause to be paid the following: (i) the
fees, disbursements and expenses of the Company’s counsel and accountants in connection with the registration of the Shares under
the 1933 Act and all other expenses in connection with the preparation, printing and filing of the Registration Statement, the Base Prospectus,
Prospectus Supplement, any Issuer Free Writing Prospectus and the Prospectus and amendments and supplements thereto and the mailing and
delivering of copies thereof to the Agents; (ii) the cost of printing or producing this Agreement or any Terms Agreement, any Blue
Sky and Legal Investment Memoranda, closing documents (including any compilations thereof) and any other documents in connection with
the offering, purchase, sale and delivery of the Shares; (iii) all expenses in connection with the qualification of the Shares for
offering and sale under state securities laws as provided in Section 3(b) hereof, including the reasonable and documented fees
and disbursements of counsel for the Agents in connection with such qualification and in connection with the Blue Sky and Legal Investment
Surveys; (iv) any filing fees incident to, and the reasonable and documented fees and disbursements of counsel for the Agents in
connection with, any required review by FINRA of the terms of the sale of the Shares; (v) all fees and expenses in connection with
listing or quoting the Shares on the Nasdaq; (vi) the cost of preparing the Shares; (vii) the costs and charges of any transfer
agent or registrar or any dividend distribution agent; (vii) the reasonable and documented fees and disbursements of counsel to
the Agents in an aggregate amount not to exceed US$75,000; and (viii) all other costs and expenses incident to the performance of
its obligations hereunder which are not otherwise specifically provided for in this Section. Such expenses set forth in clauses (iii) and
(iv) above shall invoiced in statements from the Agents to the Company, with payment to be made by the Company promptly after its
receipt thereof. It is understood, however, that, except as provided in this Section, and Section 7 hereof, the Agents will pay
all of their own costs and expenses, including the fees of its counsel, transfer taxes on resale of any of the Shares by it, and any
advertising expenses connected with any offers it may make.

 

Section 6. Conditions
of Agents’ Obligation. The obligations of the Agents hereunder shall be subject, in their discretion, to the condition that
all representations and warranties and other statements of the Company herein or in certificates of any officer of the Company delivered
pursuant to the provisions hereof are true and correct as of the Commencement Time, the date of any executed Terms Agreement and as of
each Registration Statement Amendment Date, Applicable Time and Settlement Date, to the condition that the Company shall have performed
all of its obligations hereunder theretofore to be performed, and the following additional conditions:

 

(a)            The
Prospectus Supplement shall have been filed with the Commission pursuant to Rule 424(b) under the 1933 Act on or prior to the
Commencement Time and in accordance with Section 3(a) hereof, any other material required to be filed by the Company pursuant
to Rule 433(d) under the 1933 Act shall have been filed with the Commission within the applicable time periods prescribed for
such filings by Rule 433; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have
been issued and no proceeding for that purpose shall have been initiated or threatened by the Commission and no notice of objection of
the Commission to the use of the form of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under
the 1933 Act shall have been received; no stop order suspending or preventing the use of the Prospectus or any Issuer Free Writing Prospectus
shall have been initiated or threatened by the Commission; and all requests for additional information on the part of the Commission
shall have been complied with to the reasonable satisfaction of the Agents.

 

    

     

    

 

(b)            On
every date specified in Section 3(k) hereof and on such other dates as reasonably requested by the Agents, Goodwin Procter
LLP, counsel for the Agents, shall have furnished to the Agents such written opinion or opinions, dated as of such date, with respect
to such matters as the Agents may reasonably request, and such counsel shall have received such papers and information as they may reasonably
request to enable them to pass upon such matters.

 

(c)            On
every date specified in Section 3(l) hereof and on such other dates as reasonably requested by the Agents, each of the U.S.
Company Counsel and the Canadian Company Counsel, shall have furnished to the Agents a written opinion or opinions, dated as of such
date, in form and substance reasonably satisfactory to the Agents.

 

(d)            At
the dates specified in Section 3(m) hereof and on such other dates as reasonably requested by the Agents, the independent accountants
of the Company who have certified the financial statements of the Company and its subsidiaries included or incorporated by reference
in the Registration Statement, the General Disclosure Package and the Prospectus shall have furnished to the Agents a letter dated as
of the date of delivery thereof and addressed to the Agents in form and substance reasonably satisfactory to the Agents, containing statements
and information of the type ordinarily included in accountants’ “comfort letters” to underwriters with respect to the
financial statements of the Company and its subsidiaries included or incorporated by reference in the Registration Statement, the General
Disclosure Package and the Prospectus.

 

(e)            [Reserved].

 

(f)             Prior
to the Commencement Time, the Agents shall have received a certificate, signed on behalf of the Company by its corporate secretary, in
form and substance satisfactory to the Agents.

 

(g)            (i) Upon
Commencement Time and on such other dates as reasonably requested by Agents, the Company will furnish or cause to be furnished promptly
to the Agents a certificate of an officer in a form satisfactory to the Agents stating the minimum price for the sale of such Shares
pursuant to this Agreement and the maximum number of Shares that may be issued and sold pursuant to this Agreement or, alternatively,
maximum gross proceeds from such sales, as authorized from time to time by the Company’s board of directors or a duly authorized
committee thereof or, in connection with any amendment, revision or modification of such minimum price or maximum Share number or amount,
a new certificate with respect thereto and (ii) on each date specified in Section 3(k) and on such other dates as reasonably
requested by Agents, the Agents shall have received a certificate of executive officers of the Company, one of whom shall be the Chief
Financial Officer, Chief Accounting Officer, Treasurer, or Executive Vice President in the area of capital markets and investments, dated
as of the date thereof, to the effect that (A) there has been no Material Adverse Effect since the date as of which information
is given in the General Disclosure Package and the Prospectus as then amended or supplemented, (B) the representations and warranties
in Section 1 hereof are true and correct as of such date and (C) the Company has complied with all of the agreements entered
into in connection with the transaction contemplated herein and satisfied all conditions on its part to be performed or satisfied.

 

    

     

    

 

(h)           Since
the date of the latest audited financial statements then included or incorporated by reference in the General Disclosure Package and
the Prospectus, no Material Adverse Effect shall have occurred.

 

(i)             The
Company shall have complied with the provisions of Section 3(c) hereof with respect to the timely furnishing of prospectuses.

 

(j)             On
or around each date specified in Section 3(q) and on such dates as reasonably requested by the Agents, the Company shall have
conducted due diligence sessions, in form and substance satisfactory to the Agents.

 

(k)            All
filings with the Commission required by Rule 424 under the 1933 Act to have been filed by each Applicable Time or related Settlement
Date shall have been made within the applicable time period prescribed for such filing by Rule 424 (without reliance on Rule 424(b)(8)).

 

(l)             The
Shares shall be approved for listing or quotation on the Nasdaq prior to any Settlement Date.

 

(m)           Prior
to any Settlement Date, the Company shall have furnished to the Agents such further information, documents or certificates as the Agents
may reasonably request.

 

Section 7. Indemnification.

 

(a)            The
Company will indemnify and hold harmless the Agents against any losses, claims, damages or liabilities, joint or several, to which the
Agents 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 an untrue statement or alleged untrue statement of a material fact contained in the Registration
Statement, the Base Prospectus, the Prospectus Supplement or the Prospectus or any amendment or supplement thereto, any Issuer Free Writing
Prospectus or any “issuer information” filed or required to be filed pursuant to Rule 433(d) under the 1933 Act,
or arise out of or are based upon 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, and will reimburse the Agents for any legal or other expenses reasonably incurred
by the Agents in connection with investigating or defending any such action or claim as such expenses are incurred; provided, however,
that the Company shall not be liable in any such case 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 made in the Registration Statement, the Base
Prospectus, the Prospectus Supplement or the Prospectus, or any amendment or supplement thereto, or any Issuer Free Writing Prospectus,
in reliance upon and in strict conformity with written information furnished to the Company by the Agents expressly for use therein.

 

(b)            Each
Agent, severally but not jointly, will indemnify and hold harmless the Company against any losses, claims, damages or liabilities to
which the Company 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 an untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement, the Base Prospectus, the Prospectus Supplement or the Prospectus, or any amendment or supplement thereto, or
any Issuer Free Writing Prospectus, or arise out of or are based upon 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, in each case to the extent, but only to the
extent, that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement,
the Base Prospectus, the Prospectus Supplement or the Prospectus, or any such amendment or supplement thereto, or any Issuer Free Writing
Prospectus, in reliance upon and in strict conformity with written information furnished to the Company by such Agent expressly for use
therein; and will reimburse the Company for any legal or other expenses reasonably incurred by the Company in connection with investigating
or defending any such action or claim as such expenses are incurred.

 

    

     

    

 

(c)            Promptly
after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, such indemnified party will,
if a claim in respect thereof is to be made against the indemnifying party under this Section 7, notify the indemnifying party in
writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability
under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results
in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying
party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above.
The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s
expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall
not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as
set forth below); provided, however, that such counsel shall be satisfactory to the indemnified party. Notwithstanding the indemnifying
party’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right
to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of
such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present
such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both
the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses
available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party,
(iii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the indemnified
party within a reasonable time after notice of the institution of such action or (iv) the indemnifying party shall authorize the
indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior
written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending
or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether
or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent:
(i) includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding
and (ii) does not include an admission of fault.

 

(d)            If
the indemnification provided for in this Section 7 is unavailable to hold harmless an indemnified party under subsection (a) or
(b) above in respect of any losses, claims, damages or liabilities (or actions in respect thereof) referred to therein, then each
indemnifying party (with respect to subsection (b), severally but not jointly) shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion as is
appropriate to reflect the relative benefits received by the Company on the one hand and an Agent on the other from the offering of the
Shares to which such loss, claim, damage or liability (or action in respect thereof) relates. If, however, the allocation provided by
the immediately preceding sentence is not permitted by applicable law, then each indemnifying party shall contribute to such amount paid
or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits but also the relative
fault of the Company on the one hand and such Agent on the other in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations. The relative
benefits received by the Company on the one hand and such Agent on the other shall be deemed to be in the same proportion as the total
net proceeds from the offering (before deducting expenses) received by the Company bear to the total commissions received by such Agent.
The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the one hand or such
Agent on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such
statement or omission. The Company and the Agents agree that it would not be just and equitable if contribution pursuant to this subsection
(d) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations
referred to above in this subsection (d). The amount paid or payable by an indemnified party as a result of the losses, claims, damages
or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include any legal or
other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this subsection (d), an Agent shall not be required to contribute any amount in excess of the amount
by which the total compensation received by such Agent with respect to sales of the Shares sold by it to the public exceeds the amount
of any damages which such Agent has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. 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 who was not guilty of such fraudulent misrepresentation.

 

    

     

    

 

(e)            The
obligations of the Company under this Section 7 shall be in addition to any liability which the Company may otherwise have and shall
extend, upon the same terms and conditions, to the directors, officers, employees, attorneys and agents of each Agent and to each person,
if any, who controls each Agent within the meaning of the 1933 Act and each broker dealer affiliate of each Agent; and the obligations
of the Agents under this Section 7 shall be in addition to any liability which the Agents may otherwise have and shall extend, upon
the same terms and conditions, to each director, officer, employee, attorney and agent of the Company and to each person, if any, who
controls the Company within the meaning of the 1933 Act.

 

Section 8. Representations,
Warranties and Agreements to Survive Delivery. The respective indemnities, agreements, representations, warranties and other statements
of the Company and the Agents, as set forth in this Agreement or made by or on behalf of them, respectively, pursuant to this Agreement,
shall remain in full force and effect, regardless of any investigation (or any statement as to the results thereof) made by or on behalf
of the Agents or any controlling person of the Agents, or the Company, or any officer or director or controlling person of the Company,
and shall survive delivery of and payment for the Shares.

 

    

     

    

 

Section 9. No Advisory
or Fiduciary Relationship. The Company acknowledges and agrees that (i) each Agent is acting solely in the capacity of an arm’s-length
contractual counterparty to the Company with respect to the offering of Shares contemplated hereby (including in connection with determining
the terms of such offering), (ii) the Agents have not assumed an advisory or fiduciary responsibility in favor of the Company with
respect to the offering contemplated hereby or the process leading thereto (irrespective of whether the Agents have advised or are currently
advising the Company on other matters) or any other obligation to the Company except the obligations expressly set forth in this Agreement,
and (iii) the Company has consulted its own legal and financial advisors to the extent it deemed appropriate. The Company agrees
that it will not claim that either Agent has rendered advisory services of any nature or respect, or owe a fiduciary or similar duty
to the Company, in connection with such transaction or the process leading thereto.

 

Section 10. Termination.

 

(a)            The
Company shall have the right, by giving written notice as hereinafter specified, to terminate this Agreement in its sole discretion at
any time. Any such termination shall be without liability of any party to any other party, except that (i) with respect to any pending
sale through an Agent for the Company, the obligations of the Company, including in respect of compensation of such Agent, shall remain
in full force and effect notwithstanding such termination; and (ii) the provisions of Section 1, Section 5, Section 7,
Section 8, Section 14 and Section 15 of this Agreement shall remain in full force and effect notwithstanding such termination.

 

(b)            Each
Agent shall have the right, by giving written notice as hereinafter specified, to terminate this Agreement in its sole discretion at
any time with respect to itself. Any such termination shall be without liability of any party to any other party except that the provisions
of Section 1, Section 5, Section 7, Section 8, Section 14 and Section 15 of this Agreement shall remain
in full force and effect notwithstanding such termination.

 

(c)            Unless
earlier terminated pursuant to this Section 10, this Agreement shall automatically terminate upon the issuance and sale of all of
the Shares by the Agents on the terms and subject to the conditions set forth herein except any termination pursuant to this clause (c) shall
in all cases be deemed to provide that Section 1, Section 5, Section 7, Section 8, Section 14 and Section 15
of this Agreement shall remain in full force and effect.

 

(d)            This
Agreement shall remain in full force and effect until and unless terminated pursuant to Section 10(a), (b) or (c) above
or otherwise by mutual agreement of the parties; provided that any such termination by mutual agreement or pursuant to this clause
(d) shall in all cases be deemed to provide that Section 1, Section 5, Section 7, Section 8, Section 14
and Section 15 of this Agreement shall remain in full force and effect.

 

(e)            Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such termination
shall not be effective until the close of business on the date of receipt of such notice by the Agents or the Company, as the case may
be. If such termination shall occur prior to the Settlement Date for any sale of Shares, such sale shall settle in accordance with the
provisions of Section 2(h) hereof.

 

    

     

    

 

(f)             In
the case of any purchase by an Agent pursuant to a Terms Agreement, such Agent may terminate this Agreement, at any time at or prior
to the Settlement Date (i) if there has been, since the Commencement Time or since the respective dates as of which information
is given in the General Disclosure Package or the Prospectus, any Material Adverse Effect, or (ii) if there has occurred any material
adverse change in the financial markets in the United States or the international financial markets, any outbreak of hostilities or escalation
thereof or other calamity or crisis or any change or development involving a prospective change in national or international political,
financial or economic conditions, in each case the effect of which is such as to make it, in the judgment of such Agent, impracticable
or inadvisable to market the Shares or to enforce contracts for the sale of Shares, or (iii) if trading in any securities of the
Company has been suspended or materially limited by the Commission or the Nasdaq, or if trading generally on the Nasdaq has been suspended
or materially limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been required, by
any of said exchanges or by such system or by order of the Commission, FINRA or any other governmental authority, or (iv) a material
disruption has occurred in commercial banking or securities settlement or clearance services in the United States, or (v) if a banking
moratorium has been declared by either Federal, Canadian or New York authorities.

 

Section 11. Notices.
All statements, requests, notices and agreements hereunder shall be in writing, and if to the Agents shall be delivered or sent by mail,
email or facsimile transmission to:

 

Stifel, Nicolaus & Company, Incorporated

One South Street, 15th Floor

Baltimore, Maryland 21202

Attention: Syndicate Department

 

Wedbush Securities Inc.

600 Montgomery Street

29th Floor

San Francisco, California 94111

Attention: Equity Capital Markets

 

with copies (which shall not constitute notice) to:

 

Goodwin Procter LLP

The New York Times Building

620 Eighth Avenue

New York, New York 10018

Attention: Thomas S. Levato

 

and if to the Company to:

 

TMC the metals company Inc.

595 Howe Street, 10 Floor

Vancouver, British Columbia

V6C 2T5

Attention: Chief Financial Officer

 

    

     

    

 

with copies (which shall not constitute notice) to:

 

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

One Financial Center

Boston, Massachusetts 02111

Attention: Daniel T. Kajunski

 

Any such statements, requests,
notices or agreements shall take effect upon receipt thereof. Notwithstanding anything to the contrary herein, any instruction to sell
Shares pursuant to this Agreement shall be made by an Authorized Representative to the authorized individuals with respect to a particular
Agent set forth on Schedule 1, as such Schedule 1 may be amended from time to time, in the manner described in Section 2(a)(i) hereof.

 

Section 12. Parties.
This Agreement shall be binding upon, and inure solely to the benefit of, the Agents and the Company and, to the extent provided in Sections
7 and 8 hereof, the officers, directors, employees, attorneys and agents of the Company and the Agents and each person who controls the
Company or the Agents, and their respective heirs, executors, administrators, successors and assigns, and no other person shall acquire
or have any right under or by virtue of this Agreement. No purchaser of Shares through the Agents shall be deemed a successor or assign
by reason merely of such purchase.

 

Section 13. Time
of the Essence. Time shall be of the essence of this Agreement.

 

Section 14. Waiver
of Jury Trial. The Company and the Agents hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all
right to jury trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

Section 15. Governing
Law; Jurisdiction.

 

(a)            THIS
AGREEMENT AND EACH TERMS AGREEMENT, AND ANY DISPUTE, CLAIM OR CONTROVERSY ARISING UNDER OR RELATED TO THIS AGREEMENT OR SUCH TERMS AGREEMENT,
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED
ENTIRELY WITHIN SUCH STATE. Each party hereto hereby irrevocably submits for purposes of any action arising from this Agreement or any
Terms Agreement brought by the other party hereto to the jurisdiction of the courts of New York State located in the Borough of Manhattan
and the U.S. District Court for the Southern District of New York.

 

(b)          
By the execution and delivery of this Agreement, the Company (i) acknowledges that it has, by separate written instrument, irrevocably
designated and appointed Cogency Global Inc., with an address of 122 East 42nd Street, 18th Floor, New York, NY 10168, (or any successor)
(together with any successor, the “Agent for Service”), as its authorized agent upon which process may be served in
any suit or proceeding arising out of or relating to this Agreement or the Shares, that may be instituted in any federal or state court
in the State of New York, or brought under U.S. securities laws, and acknowledges that the Agent for Service has accepted such designation,
and (ii) agrees that service of process upon the Agent for Service (or any successor) and written notice of said service to the
Company shall be deemed in every respect effective service of process upon the Company in any such suit or proceeding. The Company further
agrees to take any and all action, including the execution and filing of any and all such documents and instruments, as may be necessary
to continue such designation and appointment of the Agent for Service in full force and effect so long as any of the Shares shall be
outstanding.

 

    

     

    

 

(c)            The Company irrevocably
(i) agrees that any legal suit, action or proceeding against the Company brought by the Agents or by any person who controls an
Agent arising out of or based upon this Agreement or the transactions contemplated thereby may be instituted in the courts of New York
State located in the Borough of Manhattan and the U.S. District Court for the Southern District of New York, (ii) waives, to the
fullest extent it may effectively do so, any objection which it may now or hereafter have to the laying of venue of any such proceeding
and (iii) submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding. To the extent that the Company
has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service of notice,
attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, it hereby
irrevocably waives such immunity in respect of its obligations under the above-referenced documents, to the extent permitted by law.
The provisions of this Section 15(c) shall survive any termination of this Agreement, in whole or in part.

 

Section 16. Counterparts.
This Agreement and any Terms Agreement may be signed in two or more counterparts, each of which shall be an original, with the same effect
as if the signatures thereto and hereto were upon the same instrument. Facsimile copies or “pdf” or similar electronic data
format copies of signatures shall constitute original signatures for all purposes of this Agreement and any enforcement hereof. The words
 “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating
to this Agreement, any Terms Agreement and any certificate, agreement or other document to be signed in connection with this Agreement
and the transactions contemplated hereby shall be deemed to include Electronic Signatures, deliveries or the keeping of records in electronic
form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery
thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law,
including, without limitation, the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures
and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act. For the purpose of this Section 16,
 “Electronic Signature” means any electronic symbol or process (including, without limitation, DocuSign and AdobeSign)
attached to, or associated with, a contract or other record and adopted by a person with the intent to sign, authenticate or accept such
contract or record.

 

Section 17. Severability.
The invalidity or unenforceability of any Section, paragraph or provision of this Agreement shall not affect the validity or enforceability
of any other Section, paragraph or provision hereof. If any Section, paragraph or provision of this Agreement is for any reason determined
to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to
make it valid and enforceable.

 

Section 18. Definitions.
The terms that follow, when used in this Agreement and any Terms Agreement, shall have the meanings indicated.

 

    

     

    

 

“1933
Act” shall mean the Securities Act of 1933 and the rules and regulations of the Commission promulgated thereunder.

 

“1934
Act” shall mean the Securities Exchange Act of 1934 and the rules and regulations of the Commission promulgated thereunder.

 

“Applicable
Time” shall mean, with respect to any offered Shares, the time of sale of such Shares pursuant to this Agreement or any relevant
Terms Agreement.

 

“Base
Prospectus” shall mean the base prospectus referred to in Section 2(a) above contained in the Registration Statement
at the date of this Agreement.

 

“Business
Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust
companies are authorized or obligated by law to close in New York City.

 

“Commencement
Time” shall mean the date that the Company elects by notice to the Agents to have the Agents first commence offerings of the
Shares pursuant to this Agreement.

 

“Commission”
shall mean the Securities and Exchange Commission.

 

“Effective
Date” shall mean each date and time that the Registration Statement and any post-effective amendment or amendments thereto
became or becomes effective.

 

“Free
Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405.

 

“General
Disclosure Package” shall mean (i) the Base Prospectus, (ii) the Prospectus Supplement, (iii) the public offering
price of Shares sold at the relevant Applicable Time and (iv) any other Free Writing Prospectus that the parties hereto shall hereafter
expressly agree in writing to treat as part of the General Disclosure Package.

 

“Issuer
Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined in Rule 433.

 

“Prospectus”
shall mean the Base Prospectus, as supplemented by the Prospectus Supplement.

 

“Prospectus
Supplement” shall mean the most recent prospectus supplement relating to the Shares that was first filed pursuant to Rule 424(b) at
or prior to the Commencement Time.

 

“Registration
Statement” shall mean the registration statement referred to in Section 2(a) above, including exhibits and financial
statements and any prospectus supplement relating to the Shares that is filed with the Commission pursuant to Rule 424(b) and
deemed part of such registration statement pursuant to Rule 430B, as amended on each Effective Date and, in the event any post-effective
amendment thereto becomes effective, shall also mean such registration statement as so amended.

 

    

     

    

 

“Technical
Reports” shall mean the following technical reports: (i) “Technical Report Summary--Initial Assessment of the NORI
Property, Clarion-Clipperton Zone, for Deep Green Metals Inc.” of AMC Consultants Pty Ltd, Canadian Engineering Associates Ltd.,
Deep Reach Technology Inc., Margin — Marine Geoscience Innovation and John Michael Parianos with an effective date of March 17,
2021 filed as Exhibit 96.1 to the Registration Statement; and (ii) “Technical Report Summary--Initial Assessment of the
TOML Mineral Resource, Clarion-Clipperton Zone, Pacific Ocean, for Deep Green Metals Inc.” of AMC Consultants Pty Ltd, Canadian
Engineering Associates Ltd and Deep Reach Technology Inc. with an effective date of March 26, 2021 filed as Exhibit 96.2 to
the Registration Statement.

 

[Signature pages follow]

 

    

     

    

 

If the foregoing is in accordance
with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along
with all counterparts, will become a binding agreement between the Agents and the Company in accordance with its terms.

 

	 	Very truly yours,
	 	 
	 	TMC
    the metals company Inc.
	 	 
	 	 
	 	By:	/s/ Craig Shesky
	 	Name: Craig Shesky
	 	Title: Chief Financial Officer

 

	Accepted as of the date hereof:	 
	 	 
	STIFEL, NICOLAUS & COMPANY, INCORPORATED	 
	 	 
	 	 
	By:	/s/ Justin P. Bowman	 
	Name: Justin P. Bowman	 
	Title: Managing Director	 
	 	 
	 	 
	Wedbush
    Securities Inc.	 
	 	 
	 	 
	By:	/s/ Burke Dempsey                          	 
	Name: Burke Dempsey	 
	Title: EVP Head of Investment Banking	 

 

    

     

    

 

Schedule 1

 

Notice Parties

 

	Stifel
    Nicolaus:	 
	 	 
	Dan Covatta         	dcovatta@stifel.com
	 	 
	John Shaduk	jashaduk@stifel.com
	 	 
	Suzanne Hill	sahill@stifel.com
	 	 
	Wedbush:	 
	 	 
	Equity Capital Markets	ECM@wedbush.com

 

    

     

    

 

Annex 1

 

TMC
the metals company Inc.

 

Common Shares

(without par value)

 

TERMS AGREEMENT

 

STIFEL, NICOLAUS & COMPANY, INCORPORATED

One South Street, 15th Floor

Baltimore, Maryland 21202

 

Wedbush Securities Inc.

600 Montgomery Street

29th Floor

San Francisco, California 94111

 

Ladies and Gentlemen:

 

TMC the metals company Inc.,
a company organized under the laws of the Province of British Columbia (the “Company”), proposes, subject to the terms
and conditions stated herein and in the At-The-Market Equity Distribution Agreement, dated December 22, 2022 (the “Distribution
Agreement”), among the Company, Stifel, Nicolaus & Company, Incorporated and Wedbush Securities Inc., to issue
and sell to [Stifel, Nicolaus & Company, Incorporated] [Wedbush Securities Inc.] (the “Agent”) the securities
specified in the Schedule hereto (the “Purchased Securities”).

 

Each of the provisions of
the Distribution Agreement not specifically related to the solicitation by the Agent, as agent of the Company, of offers to purchase
securities is incorporated herein by reference in its entirety, and shall be deemed to be part of this Terms Agreement to the same extent
as if such provisions had been set forth in full herein. Each of the representations and warranties set forth therein shall be deemed
to have been made at and as of the date of this Terms Agreement and the Applicable Time, except that each representation and warranty
in Section 1 of the Distribution Agreement which makes reference to the Prospectus (as therein defined) shall be deemed to be a
representation and warranty as of the date of the Distribution Agreement in relation to the Prospectus, and also a representation and
warranty as of the date of this Terms Agreement and the Settlement Date in relation to the Prospectus as amended and supplemented to
relate to the Purchased Securities.

 

An amendment to the Registration
Statement (as defined in the Distribution Agreement), or a supplement to the Prospectus, as the case may be, relating to the Purchased
Securities, in the form heretofore delivered to the Agent is now proposed to be filed with the Securities and Exchange Commission.

 

    

     

    

 

Subject to the terms and
conditions set forth herein and in the Distribution Agreement which are incorporated herein by reference, the Company agrees to issue
and sell to the Agent and the latter agrees to purchase from the Company the number of shares of the Purchased Securities at the time
and place and at the purchase price set forth in the Schedule hereto.

 

If the foregoing is in accordance
with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along
with all counterparts, will become a binding agreement between the Agent and the Company in accordance with its terms.

 

	 	Very truly yours,
	 	 
	 	TMC
    the metals company Inc.
	 	 
	 	 
	 	By:	             
	 	Name:  
	 	Title: 

 

	Accepted as of the date hereof:	 
	 	 
	STIFEL, NICOLAUS & COMPANY, INCORPORATED Wedbush
    Securities Inc.	 
	 	 
	 	 
	By:	                                                 	 
	Name:	 
	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00351-of-00352.parquet"}]]