THIS PRIVATE PLACEMENT
SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION AGREEMENT”)
RELATES TO AN OFFERING OF SECURITIES IN AN OFFSHORE TRANSACTION TO
PERSONS WHO ARE NOT U.S. PERSONS (AS DEFINED HEREIN) PURSUANT TO
REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “1933 ACT”).
NONE OF THE SECURITIES TO WHICH
THIS SUBSCRIPTION AGREEMENT (THE “SUBSCRIPTION
AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE 1933 ACT,
OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE
MAY BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED
STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT IN ACCORDANCE
WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT
TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY
IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS. IN ADDITION,
HEDGING TRANSACTIONS INVOLVING THE SECURITIES MAY NOT BE CONDUCTED
UNLESS IN ACCORDANCE WITH THE 1933 ACT.
UNLESS PERMITTED UNDER SECURITIES
LEGISLATION, THE HOLDER OF THE SECURITIES MUST NOT TRADE THE
SECURITIES BEFORE THE DATE WHICH IS FOUR MONTHS AND ONE DAY FROM
THE CLOSING DATE (AS DEFINED HEREIN).
CONFIDENTIAL
PRIVATE PLACEMENT SUBSCRIPTION
AGREEMENT
(Non U.S. Subscribers)
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To:
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Voice Mobility International, Inc. (the
“Corporation”)
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100-4190 Lougheed Highway
Burnaby, British Columbia
V5C 6A8
Purchase of
Units
1.1 The
undersigned (the “Subscriber”) hereby irrevocably
subscribes for and agrees to purchase ___________ units (each, a
“Unit”) of the Corporation at a price of CDN$0.10 per
Unit (such subscription and agreement to purchase being the
“Subscription Agreement”), for an aggregate purchase
price of $________________________ (the “Subscription
Proceeds”), which is tendered herewith, on the basis of the
representations and warranties and subject to the terms and
conditions set forth herein.
1.2 Each
Unit consists of one common share in the capital of the Corporation
(each, a “Share”) and one common share purchase warrant
in the form attached hereto as Schedule A (each, a
“Warrant”). Each Warrant shall be non-transferable and
shall entitle the holder thereof to purchase one Share (each, a
“Warrant Share”) at a price of CDN$0.20 per Warrant
Share for a period of three (3) years from the date of
issuance.
1.3 The
Corporation has the right, on thirty (30) days’ written
notice (the “Notice”), to require the holders of the
Warrants to exercise the Warrants so long as (i) the closing price
of the Shares on the Toronto Stock Exchange (the “TSX”)
equals or exceeds CDN$0.30 per share for at least thirty (30)
consecutive trading days prior to the date of the Notice and (ii)
the average daily trading volume is greater than 100,000 Shares for
such thirty (30) consecutive trading day period. The Warrants will
terminate on the date that is 120 days from the date of the Notice
in the event that the Subscriber does not exercise the
Warrants.
1.4 The
Units, the Warrants, the Shares and the Warrant Shares are
collectively referred to herein as the
“Securities”.
1.5 The
Corporation hereby irrevocably agrees to sell, on the basis of the
representations and warranties and subject to the terms and
conditions set forth herein, to the Subscriber the Shares. Subject
to the terms hereof, the Subscription Agreement will be effective
upon its acceptance by the Corporation.
1.6 Unless
otherwise provided, all dollar amounts referred to in this
Subscription Agreement are in lawful money of Canada.
2.1 The
Subscription Proceeds must accompany this Subscription Agreement
and shall be paid by bank draft, certified cheque, money order or
wire transfer directly to the Corporation payable to “Voice
Mobility International, Inc.”, c/o HSBC Bank Canada, 1578
Marine Drive, West Vancouver, British Columbia V7V 1H8, Transit
Number: 10510 (Account Number: 252885-001). If by wire transfer,
please ensure that the wire instruction sheet contains the
following statement: “Subscription Proceeds – [insert
name of Subscriber] re: Voice Mobility International,
Inc.” ,or the Subscription Proceeds will be returned to
the sender.
2.2 The
Subscriber acknowledges and agrees that this Subscription
Agreement, the Subscription Proceeds and any other documents
delivered in connection herewith may be held by the
Corporation’s lawyers on behalf of the Corporation. In the
event that this Subscription Agreement is not accepted by the
Corporation for whatever reason at its sole discretion within 60
days of the delivery of an executed Subscription Agreement by the
Subscriber, this Subscription Agreement, the Subscription Proceeds
and any other documents delivered in connection herewith will be
returned to the Subscriber at the address of the Subscriber as set
forth in this Subscription Agreement.
2.3 Where
the Subscription Proceeds are paid to the Corporation, the
Corporation is entitled to treat such Subscription Proceeds as an
interest free loan to the Corporation prior to this subscription
being accepted by the Corporation.
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3.
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Documents Required from
Subscriber
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3.1
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The Subscriber must complete, sign
and return to the Corporation:
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(a)
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two (2) executed copies of this
Subscription Agreement; and
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(b)
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a National Instrument 45-106
(“NI 45-106”) Questionnaire in the form attached as
Exhibit A (the “Questionnaire”).
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3.2 The
Subscriber shall complete, sign and return to the Corporation as
soon as possible, on request by the Corporation, any documents,
questionnaires, notices and undertakings as may be required by
regulatory authorities, quotation systems, stock exchanges and
applicable law.
4.1 Closing
of this offering of Units (the “Offering”) is subject
to approval of the TSX. Closing of the Offering shall occur on or
before _______________ , 2009, or on such other date as may be
determined by the Corporation in its sole discretion, but in any
event no later than the date prescribed by the TSX, subject to any
extension approved by the TSX (the “Closing Date”). The
Corporation may, at its discretion, elect to close the Offering in
one or more closings (each, a “Closing”), in which
event the Corporation may agree with one or more subscribers
(including the Subscriber hereunder) to issue Securities to such
subscriber(s) against payment therefor at any time on or prior to
the Closing Date.
5.1 Notwithstanding
any other term of this Subscription Agreement, this Subscription
Agreement is subject to the Corporation obtaining the approval of
the TSX for the Offering (“Regulatory Approval”) by ,
2009. In the event that Regulatory Approval is not obtained by this
date, either party may terminate its obligations under
this
Subscription Agreement by written
notice to the other party and, in such event, the Subscription
Proceeds will be returned to the Subscriber without interest or
deduction.
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6.
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Acknowledgements of
Subscriber
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6.1
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The Subscriber acknowledges and
agrees that:
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(a)
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none of the Securities have been
registered under the Securities Act of 1933, as amended (the
“1933 Act”) or under any state securities or
“blue sky” laws of any state of the United States, and,
unless so registered, may not be offered or sold in the United
States or, directly or indirectly, to U.S. Persons (as defined
herein), except in accordance with the provisions of Regulation S
promulgated under the 1933 Act (“Regulation S”),
pursuant to an effective registration statement under the 1933 Act,
or pursuant to an exemption from, or in a transaction not subject
to, the registration requirements of the 1933 Act and in each case
only in accordance with applicable state and provincial securities
laws;
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(b)
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the Subscriber has received and
carefully read this Subscription Agreement;
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(c)
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by completing the Questionnaire, the
Subscriber is representing and warranting that the Subscriber is
satisfies one of the categories of registration and prospectus
exemptions provided in NI 45-106;
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(d)
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the Subscriber is outside the United
States when receiving and executing this Subscription and is
acquiring the Securities as principal for its own account, for
investment purposes only, and not with a view to, or for, resale,
distribution or fractionalization thereof, in whole or in part, and
no other person has a direct or indirect beneficial interest in
such Securities;
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(e)
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none of the Securities may be
offered or sold to a U.S. Person or for the account or benefit of a
U.S. Person (other than a distributor) prior to the end of the
expiration of a period of one year after the date of original
issuance of the Securities;
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(f)
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the statutory and regulatory basis
for the exemption claimed for the offer and sale of the Securities,
although in technical compliance with Regulation S, would not be
available if the offering is part of a plan or scheme to evade the
registration provisions of the 1933 Act;
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(g)
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the decision to execute this
Subscription Agreement and purchase the Units agreed to be
purchased hereunder has not been based upon any oral or written
representation as to fact or otherwise made by or on behalf of the
Corporation and such decision is based solely upon a review of the
publicly available information regarding the Corporation available
on the website of the Canadian regulatory authorities available at
www.sedar.com and the United States Securities and Exchange
Commission (the “SEC’) available at www.sec.gov
(collectively, the “Corporation
Information”);
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(h)
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the Securities are not being
subscribed for by the Subscriber as a result of any material
information about the Corporation’s affairs that has not been
publicly disclosed;
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(i)
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the Subscriber and the
Subscriber’s advisor(s) have had a reasonable opportunity to
ask questions of and receive answers from the Corporation in
connection with the Offering, and to obtain additional information,
to the extent possessed or obtainable by the Corporation without
unreasonable effort or expense, necessary to verify the accuracy of
the information contained in the Corporation Information, or any
other document provided to the Subscriber;
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(j)
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the books and records of the
Corporation were available upon reasonable notice for inspection,
subject to certain confidentiality restrictions, by the Subscriber
during reasonable business hours at its principal place of business
and that all documents, records and books in connection with
the
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Offering have been made available
for inspection by the Subscriber, the Subscriber’s attorney
and/or advisor(s);
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(k)
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all of the information which the
Subscriber has provided to the Corporation is correct and complete
as of the date the Subscription Agreement is signed, and if there
should be any change in such information prior to this Subscription
Agreement being executed by the Corporation, the Subscriber will
immediately provide the Corporation with such
information;
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(l)
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the Subscriber will indemnify and
hold harmless the Corporation and, where applicable, its respective
directors, officers, employees, agents, advisors and shareholders
from and against any and all loss, liability, claim, damage and
expense whatsoever (including, but not limited to, any and all
fees, costs and expenses whatsoever reasonably incurred in
investigating, preparing or defending against any claim, lawsuit,
administrative proceeding or investigation whether commenced or
threatened) arising out of or based upon any representation or
warranty of the Subscriber contained herein, in the Questionnaire
or in any document furnished by the Subscriber to the Corporation
in connection herewith being untrue in any material respect or any
breach or failure by the Subscriber to comply with any covenant or
agreement made by the Subscriber to the Corporation in connection
therewith;
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(m)
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the issuance and sale of the
Securities to the Subscriber will not be completed if it would be
unlawful or if, in the discretion of the Corporation acting
reasonably, it is not in the best interests of the
Corporation;
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(n)
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the Subscriber has been advised to
consult the Subscriber’s own legal, tax and other advisors
with respect to the merits and risks of an investment in the
Securities and with respect to applicable resale restrictions, and
it is solely responsible (and the Corporation is not in any way
responsible) for compliance with:
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(i)
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any applicable laws of the
jurisdiction in which the Subscriber is resident in connection with
the distribution of the Securities hereunder, and
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(ii)
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applicable resale
restrictions;
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(o)
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the Subscriber is acquiring the
Securities pursuant to exemptions from the registration and
prospectus requirements of all securities rules, policies, notices
orders, legislation and regulations of any kind whatsoever
(collectively, the “Securities Rules”) of all
jurisdictions applicable to this Subscription Agreement, and, as a
consequence, the undersigned will not be entitled to use most of
the civil remedies available under the Securities Rules, including
statutory rights of rescission and damages, and the undersigned
will not receive information that would otherwise be required to be
provided to the undersigned pursuant to the Securities Rules if
such exemptions were not being used;
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(p)
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the Securities are being issued
pursuant to an exemption from the Securities Rules by virtue of (i)
the undersigned’s status as an “accredited
investor”, as defined in NI 45-106; and (ii) the fact that
the undersigned is not a “U.S. person” as such term is
defined in Regulation S promulgated under the 1933 Act;
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(q)
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any transfer, resale or other
subsequent disposition of any of the Securities may be subject to
restrictions contained in the Securities Rules applicable to the
holder of the Securities or to the proposed transferee, including,
but not limited to, resale restrictions under the Securities
Rules;
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(r)
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no documents in connection with this
Offering have been reviewed by the SEC, any state securities
administrators or any Canadian regulatory authorities;
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(s)
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no securities commission or similar
regulatory authority has reviewed or passed on the merits of the
Securities or has reviewed any documents in connection with the
sale of the Securities hereunder;
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(t)
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the Corporation will refuse to
register the transfer of the Securities not made in accordance with
the provisions of Regulation S, pursuant to an effective
registration statement under the 1933 Act or pursuant to an
available exemption from the registration requirements of the 1933
Act and in each case in accordance with applicable state and
provincial securities laws;
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(u)
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the Corporation may pay to finders
that introduce subscribers to the Corporation a finder’s fee
of up to ten percent (10%) of the gross proceeds of the Offering,
payable in Units;
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(v)
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there is no government or other
insurance covering any of the Securities; and
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(w)
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this Subscription Agreement is not
enforceable by the Subscriber unless it has been accepted by the
Corporation, and the Subscriber acknowledges and agrees that the
Corporation reserves the right to reject any Subscription Agreement
for any reason whatsoever.
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7.
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Representations, Warranties and Covenants of
the Subscriber
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7.1 The
Subscriber hereby represents and warrants to and covenants with the
Corporation (which representations, warranties and covenants shall
survive the Closing) that:
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(a)
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the Subscriber is not a U.S.
Person;
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(a)
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the Subscriber is not acquiring the
Securities for the account or benefit of, directly or indirectly,
any U.S. Person;
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(b)
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the Subscriber is resident in the
jurisdiction set out under the heading “Name and
Address” on the signature page of this Subscription
Agreement;
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(c)
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the sale of the Securities to the
Subscriber as contemplated by the delivery of this Subscription
Agreement, the acceptance of it by the Corporation and the issuance
of the Securities to the Subscriber complies with all applicable
laws of the Subscriber’s jurisdiction of residence or
domicile and will not cause the Corporation to become subject to or
comply with any disclosure, prospectus or reporting requirements
under any such applicable laws;
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(i)
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is knowledgeable of, or has been
independently advised as to, the applicable securities laws of the
securities regulators having application in the jurisdiction in
which the Subscriber is resident (the “International
Jurisdiction”) which would apply to the acquisition of the
Securities;
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(ii)
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the Subscriber is purchasing the
Securities pursuant to exemptions from prospectus or equivalent
requirements under applicable securities laws or, if such is not
applicable, the Subscriber is permitted to purchase the Securities
under the applicable securities laws of the securities regulators
in the International Jurisdiction without the need to rely on any
exemptions;
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(iii)
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the applicable securities laws of
the authorities in the International Jurisdiction do not require
the Corporation to make any filings or seek any approvals of any
kind whatsoever from any securities regulator of any kind
whatsoever in the International Jurisdiction in connection with the
issue and sale or resale of the Securities; and
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(iv)
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the purchase of the Securities by
the Subscriber does not trigger:
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A.
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any obligation to prepare and file a
prospectus or similar document, or any other report with respect to
such purchase in the International Jurisdiction; or
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B.
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any continuous disclosure reporting
obligation of the Corporation in the International Jurisdiction;
and
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the Subscriber will, if requested by
the Corporation, deliver to the Corporation a certificate or
opinion of local counsel from the International Jurisdiction which
will confirm the matters referred to in subparagraphs (ii), (iii)
and (iv) above to the satisfaction of the Corporation, acting
reasonably;
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(e)
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the Subscriber (i) has adequate net
worth and means of providing for its current financial needs and
possible personal contingencies, (ii) has no need for liquidity in
this investment, and (iii) is able to bear the economic risks of an
investment in the Securities for an indefinite period of time, and
can afford the complete loss of such investment;
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(f)
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all information contained in the
Questionnaire is complete and accurate and may be relied upon by
the Corporation, and the Subscriber will notify the Corporation
immediately of any material change in any such information
occurring prior to the Closing;
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(g)
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the Subscriber is purchasing the
Securities for its own account for investment purposes only and not
for the account of any other person and not for distribution,
assignment or resale to others, and no other person has a direct or
indirect beneficial interest in such Securities, and the Subscriber
has not subdivided his interest in the Securities with any other
person;
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(h)
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the Subscriber (i) is able to fend
for itself in the Subscription Agreement; (ii) has such knowledge
and experience in business matters as to be capable of evaluating
the merits and risks of its prospective investment in the
Securities; and (iii) has the ability to bear the economic risks of
its prospective investment and can afford the complete loss of such
investment;
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(i)
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the Subscriber is aware that an
investment in the Corporation is speculative and involves certain
risks, including the possible loss of the investment;
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(b)
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the Subscriber is acquiring the
Securities as principal for investment only and not with a view to,
or for, resale, distribution or fractionalization thereof, in whole
or in part, and, in particular, it has no intention to distribute
either directly or indirectly any of the Securities in the United
States or to U.S. Persons;
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(j)
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the Subscriber is outside the United
States when receiving and executing this Subscription;
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(k)
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the Subscriber understands and
agrees not to engage in any hedging transactions involving any of
the Securities unless such transactions are in compliance with the
provisions of the 1933 Act and in each case only in accordance with
applicable state securities laws;
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(l)
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the Subscriber has not acquired the
Securities as a result of, and will not itself engage in, any
"directed selling efforts" (as defined in Regulation S under the
1933 Act) in the United States in respect of any of the Securities
which would include any activities undertaken for the purpose of,
or that could reasonably be expected to have the effect of,
conditioning the market in the United States for the resale of any
of the Securities; provided, however, that the Subscriber may sell
or otherwise dispose of any of the Securities pursuant to
registration of any of the Securities pursuant to the 1933 Act and
any applicable state securities laws or under an exemption from
such registration requirements and as otherwise provided
herein;
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(m)
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the Subscriber understands and
agrees that offers and sales of any of the Shares prior to the
expiration of a distribution compliance period specified in
Regulation S (the “Distribution Compliance
Period”) shall only be made in compliance with the safe
harbor provisions set forth in Regulation S, pursuant to the
registration provisions of the 1933 Act or an exemption therefrom,
and that all offers and sales after the Distribution Compliance
Period shall be made only in compliance with the registration
provisions of the 1933 Act or an exemption therefrom and in each
case only in accordance with applicable state and provincial
securities laws;
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(n)
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the Subscriber has made an
independent examination and investigation of an investment in the
Securities and the Corporation and has depended on the advice of
its legal and financial advisors and agrees that the Corporation
will not be responsible in anyway whatsoever for the
Subscriber’s decision to invest in the Securities and the
Corporation;
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(o)
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the Subscriber has the requisite
knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of the investment in the
Shares and the Corporation and the Subscriber is providing evidence
of such knowledge and experience in these matters through the
information requested in the Questionnaire;
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(p)
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the Subscriber understands and
agrees that the Corporation and others will rely upon the truth and
accuracy of the acknowledgements, representations and agreements
contained in this Subscription Agreement, the Questionnaire and
agrees that if any of such acknowledgements, representations and
agreements are no longer accurate or have been breached, it shall
promptly notify the Corporation;
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(q)
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the Subscriber has the legal
capacity and competence to enter into and execute this Subscription
Agreement and to take all actions required pursuant hereto and, if
the Subscriber is a corporation, it is duly incorporated and
validly subsisting under the laws of its jurisdiction of
incorporation and all necessary approvals by its directors,
shareholders and others have been obtained to authorize execution
and performance of this Subscription Agreement on behalf of the
Subscriber;
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(r)
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the entering into of this
Subscription Agreement and the transactions contemplated hereby do
not result in the violation of any of the terms and provisions of
any law applicable to, or, if applicable, the constating documents
of, the Subscriber or of any agreement, written or oral, to which
the Subscriber may be a party or by which the Subscriber is or may
be bound;
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(s)
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the Subscriber has duly executed and
delivered this Subscription Agreement and it constitutes a valid
and binding agreement of the Subscriber enforceable against the
Subscriber;
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(t)
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the Subscriber is not an underwriter
of, or dealer in, the common shares of the Corporation, nor is the
Subscriber participating, pursuant to a contractual agreement or
otherwise, in the distribution of the Shares;
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(u)
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the Subscriber understands and
agrees that none of the Securities have been registered under the
1933 Act, or under any state securities or “blue sky”
laws of any state of the United States, and, unless so registered,
may not be offered or sold in the United States or, directly or
indirectly, to U.S. Persons except in accordance with the
provisions of Regulation S, pursuant to an effective registration
statement under the 1933 Act, or pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of
the 1933 Act;
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(v)
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the Subscriber understands and
agrees that the Corporation will refuse to register any transfer of
the Shares not made in accordance with the provisions of Regulation
S, pursuant to an effective registration statement under the 1933
Act or pursuant to an available exemption from the registration
requirements of the 1933 Act;
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(w)
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the Subscriber is not aware of any
advertisement of any of the Securities and is not acquiring the
Securities as a result of any form of general solicitation or
general advertising including advertisements, articles, notices or
other communications published in any newspaper, magazine or
similar media or broadcast over radio or television, or any seminar
or meeting whose attendees have been invited by general
solicitation or general advertising; and
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(x)
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no person has made to the Subscriber
any written or oral representations:
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(i)
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that any person will resell or
repurchase any of the Securities;
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(ii)
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that any person will refund the
purchase price of any of the Securities; or
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(iii)
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as to the future price or value of
any of the Securities.
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7.2
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In this Subscription Agreement, the
term “U.S. Person” shall have the meaning ascribed
thereto in Regulation S.
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8.
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Representations and Warranties of the
Corporation
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8.1 The
Corporation represents and warrants to the Subscriber, and
acknowledges that the Subscriber is relying on this representation
and warranty in entering into this Subscription Agreement, that the
Corporation has good and sufficient right and authority to enter
into this Subscription Agreement and complete its transactions
contemplated under this Subscription Agreement on the terms and
conditions set forth herein and this Subscription Agreement is a
binding agreement on the Corporation enforceable against it in
accordance with its terms and conditions.
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9.
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Representations and Warranties will be Relied
Upon by the Corporation
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9.1 The
Subscriber acknowledges that the representations and warranties
contained herein, in the Questionnaire are made by it with the
intention that such representations and warranties may be relied
upon by the Corporation and its legal counsel in determining the
Subscriber’s eligibility to purchase the Shares under
applicable Securities Rules, or (if applicable) the eligibility of
others on whose behalf it is contracting hereunder to purchase the
Shares under applicable Securities Rules. The Subscriber further
agrees that by accepting delivery of the certificates representing
the Shares at the Closing, it will be representing and warranting
that the representations and warranties contained herein, in the
Questionnaire are true and correct as at the Closing with the same
force and effect as if they had been made by the Subscriber on the
Closing Date and that they will survive the purchase by the
Subscriber of Shares and will continue in full force and effect
notwithstanding any subsequent disposition by the Subscriber of
such Shares.
10.1 The
Subscriber acknowledges that any resale of the Shares will be
subject to resale restrictions contained in the Securities Rules
applicable to each Subscriber or proposed transferee and it is the
responsibility of the Subscriber to find out what those
restrictions are and to comply with them before selling the
Securities.
10.2 The
Subscriber acknowledges and agrees that the Unit Shares and any
Warrant Shares acquired on the exercise of the Warrants will be
subject to such trade and resale restrictions as may be imposed by
operation of applicable Securities Rules, and the certificates
representing the Unit Shares, the Warrants and any of the Warrant
Shares acquired on the exercise of the Warrants will bear such
legends as may be required by applicable Securities Rules and by
the rules and policies of the TSX. The Subscriber further
acknowledges and agrees that it is the Subscriber’s
obligation to comply with the trade restrictions in all of the
applicable jurisdictions and the Subscriber’s obligation to
comply with the trade restrictions except as provided for herein.
In this regard, the Subscriber acknowledges that such trade
restrictions provide that the Subscriber must hold and not sell,
transfer or in any manner dispose (collectively, the
“Disposition”) of the Unit Sh
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