As
filed with the Securities and Exchange Commission on December 13, 2024
Registration
No. 333-
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
FORM
S-8
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
Verses
AI Inc.
(Exact
Name of Registrant as Specified in Its Charter)
British Columbia, Canada |
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88-2921736 |
(State
or other jurisdiction of
incorporation
or organization) |
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(I.R.S.
Employer
Identification
No.) |
205
- 810 Quayside Drive
New
Westminster, British Columbia
Canada
V3M 6B9
(323)
868-0514
(Address
of Principal Executive Offices, Including Zip Code)
Omnibus
Equity Incentive Plan
(Full
title of the plan)
VERSES,
Inc.
5877
Obama Blvd.
Los
Angeles, CA 90016
(Name
and address agent for service)
(310)
988-1944
(Telephone
number, including area code, of agent for service)
Copies
to:
Andrew
J. Bond, Esq.
Nazia
J. Khan, Esq.
Sheppard, Mullin, Richter & Hampton LLP
1900 Avenue of the Stars, Suite 1600
Los Angeles, CA, 90067-6055
Telephone: (310) 228-6155
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large
Accelerated filer |
☐ |
Accelerated
filer |
☐ |
Non-accelerated
filer |
☒ |
Smaller
reporting company |
☒ |
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Emerging
growth company |
☒ |
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☒
PART
I
INFORMATION
REQUIRED IN THE SECTION 10(a) PROSPECTUS
Item
1. Plan Information.
Verses
AI Inc. (the “Company”) will provide each recipient (the “Recipients”) of a grant under the Company’s Omnibus
Equity Incentive Plan (the “Plan”) with documents that contain information related to the Plan, and other information including,
but not limited to, the disclosure required by Item 1 of Form S-8 which information is not required to be and is not being filed as a
part of this Registration Statement on Form S-8 (the “Registration Statement”) or as prospectuses or prospectus supplements
pursuant to Rule 424 under the Securities Act of 1933, as amended (the “Securities Act”). The foregoing information and the
documents incorporated by reference in response to Item 3 of Part II of this Registration Statement, taken together, constitute a prospectus
that meets the requirements of Section 10(a) of the Securities Act. A Section 10(a) prospectus will be given to each Recipient who receives
Subordinate Class A Voting shares covered by this Registration Statement, in accordance with Rule 428(b)(1) under the Securities Act.
Item
2. Registrant Information and Employee Program Annual Information.
The
Company will provide to each Recipient a written statement advising of the availability of documents incorporated by reference in Item
3 of Part II of this Registration Statement (which documents are incorporated by reference in this Section 10(a) prospectus) and of documents
required to be delivered pursuant to Rule 428(b) under the Securities Act without charge and upon written or oral request by contacting:
Gabriel
René
Chief
Executive Officer
VERSES
AI Inc.
5877
Obama Blvd.
Los
Angeles, CA 90016
PART
II
INFORMATION
REQUIRED IN THE REGISTRATION STATEMENT
Item
3. Incorporation of Documents by Reference.
The
following documents filed by the Company with the Securities and Exchange Commission (the “SEC”) pursuant to the Securities
Act and the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are incorporated herein by reference:
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(a) |
The
Company’s effective registration statement on Form F-10 (File No. 333-282301) filed with the SEC on September 24, 2024, and
amended September 27, 2024, which contains audited financial statements for the Company’s latest fiscal year. |
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(b) |
The
Company’s 6-K furnished to the SEC on November 15, 2024 (including Exhibit 99.1 thereto which includes the unaudited interim
consolidated financial statements of the Company for the three- and six- month period ended September 30, 2024 and Exhibit 99.2 thereto
which includes the Company’s management’s discussion and analysis for the three- and six- month period ended September
30, 2024, but excluding Exhibits 99.3 and 99.4 thereto); |
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(c) |
All
other reports filed pursuant to Section 13(a) or 15(d) of the Exchange Act since the end of the fiscal year covered by the Form F-10
filed herewith pursuant to (a) above; and |
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(d) |
The
description of the Company’s Subordinate Class A Voting shares, also referred to as the subordinate voting shares, contained
in the Company’s Annual Information Form under the heading “Description of Capital Structure,” filed as
exhibit to 4.1 to the Form F-10 Registration Statement incorporated by reference herein pursuant to (a) above, including any amendment
or report filed for the purposes of updating such description. |
In
addition, unless otherwise stated herein, all documents subsequently filed with the SEC by the Company pursuant to Section 13(a), 13(c),
14 or 15(d) of the Exchange Act subsequent to the date of this Registration Statement and prior to the filing of a post-effective amendment
to this Registration Statement that indicates that all securities offered hereby have been sold or that deregisters all securities then
remaining unsold, shall be deemed to be incorporated by reference into this Registration Statement and to be a part hereof from the date
of filing such reports and documents. In addition, any report furnished by the Company on Form 6-K shall be deemed to be incorporated
by reference in the registration statement if and to the extent that such report on Form 6-K so provides.
Any
statement contained in a document incorporated or deemed to be incorporated by reference herein shall be deemed to be modified or superseded
for purposes of this Registration Statement to the extent that a statement herein or in any subsequently filed document that also is
or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any statement contained in this registration
statement shall be deemed to be modified or superseded to the extent that a statement contained in a subsequently filed document which
is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any statement so modified or superseded
shall not be deemed, except as so modified or superseded, to constitute a part of this registration statement.
Item
4. Description of Securities.
Not
applicable.
Item
5. Interests of Named Experts and Counsel.
None.
Item
6. Indemnification of Directors and Officers.
The
Company is subject to the provisions of Part 5, Division 5 of the Business Corporations Act (British Columbia) (the “BCBCA”).
Under
Section 160 of the BCBCA, the Company may, subject to Section 163 of the BCBCA:
(a) indemnify an individual who:
(i)
is or was a director or officer of the Company,
(ii)
is or was a director or officer of another corporation (A) at a time when the corporation is or was an affiliate of the Company; or (B)
at the Company’s request, or
(iii)
at the request of the Company, is or was, or holds or held a position equivalent to that of, a
director or officer of a partnership, trust, joint venture or other unincorporated entity,
including,
subject to certain limited exceptions, the heirs and personal or other legal representatives of that individual (collectively, an “eligible
party”), against all eligible penalties (defined below) to which the eligible party is or may be liable; and
(b)
after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by an eligible party in respect
of that proceeding, where:
(i)
“eligible penalty” means a judgment, penalty or fine awarded or imposed in, or an amount
paid in settlement of, an eligible proceeding,
(ii)
“eligible proceeding” means a proceeding in which an eligible party or any of the heirs
and personal or other legal representatives of the eligible party, by reason of the eligible party being or having been a director or
officer of, or holding or having held a position equivalent to that of a director or officer of, the Company or an associated corporation
(A) is or may be joined as a party, or (B) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related
to, the proceeding,
(iii)
“expenses” includes costs, charges and expenses, including legal and other fees, but
does not include judgments, penalties, fines or amounts paid in settlement of a proceeding, and
(iv)
“proceeding” includes any legal proceeding or investigative action, whether current,
threatened, pending or completed.
Under
Section 161 of the BCBCA, and subject to Section 163 of the BCBCA, the Company must, after the final disposition of an eligible proceeding,
pay the expenses actually and reasonably incurred by an eligible party in respect of that proceeding if the eligible party (a) has not
been reimbursed for those expenses and (b) is wholly successful, on the merits or otherwise, in the outcome of the proceeding or is substantially
successful on the merits in the outcome of the proceeding.
Under
Section 162 of the BCBCA, and subject to Section 163 of the BCBCA, the Company may pay, as they are incurred in advance of the final
disposition of an eligible proceeding, the expenses actually and reasonably incurred by an eligible party in respect of the proceeding,
provided that the Company must not make such payments unless the Company first receives from the eligible party a written undertaking
that, if it is ultimately determined that the payment of expenses is prohibited under Section 163 of the BCBCA, the eligible party will
repay the amounts advanced.
Under
Section 163 of the BCBCA, the Company must not indemnify an eligible party against eligible penalties to which the eligible party is
or may be liable or pay the expenses of an eligible party under Section 160(b), 161 or 162 of the BCBCA if any of the following circumstances
apply:
(a)
if the indemnity or payment is made under an earlier agreement to indemnify or pay expenses and,
at the time that the agreement to indemnify or pay expenses was made, the Company was prohibited from giving the indemnity or paying
the expenses by its memorandum or Articles;
(b)
if the indemnity or payment is made otherwise than under an earlier agreement to indemnify or pay expenses and, at the time that the
indemnity or payment is made, the Company is prohibited from giving the indemnity or paying the expenses by its memorandum or Articles;
(c)
if, in relation to the subject matter of the eligible proceeding, the eligible party did not act honestly and in good faith with a view
to the best interests of the Company or the associated corporation, as the case may be; or
(d)
in the case of an eligible proceeding other than a civil proceeding, if the eligible party did
not have reasonable grounds for believing that the eligible party’s conduct in respect of which the proceeding was brought was
lawful.
If
an eligible proceeding is brought against an eligible party by or on behalf of the Company or by or on behalf of an associated corporation,
the Company must not do either of the following: (a) indemnify the eligible party under Section 160(a) of the BCBCA in respect of the
proceeding, or (b) pay the expenses of the eligible party under Section 160(b), 161 or 162 of the BCBCA in respect of the proceeding.
Under
Section 164 of the BCBCA, and despite any other provision of Part 5, Division 5 of the BCBCA and whether or not payment of expenses or
indemnification has been sought, authorized or declined under Part 5, Division 5 of the BCBCA, on application of the Company or an eligible
party, the court may do one or more of the following:
(a)
order the Company to indemnify an eligible party against any liability incurred by the eligible
party in respect of an eligible proceeding;
(b)
order the Company to pay some or all of the expenses incurred by an eligible party in respect of
an eligible proceeding;
(c)
order the enforcement of, or any payment under, an agreement of indemnification entered into by
the Company;
(d)
order the Company to pay some or all of the expenses actually and reasonably incurred by any person in obtaining an order under Section
164 of the BCBCA; or
(e)
make any other order the court considers appropriate.
Section
165 of the BCBCA provides that the Company may purchase and maintain insurance for the benefit of an eligible party or the heirs and
personal or other legal representatives of the eligible party against any liability that may be incurred by reason of the eligible party
being or having been a director or officer of, or holding or having held a position equivalent to that of a director or officer of, the
Company or an associated corporation.
Company’s
Articles
Under
Part 21.2 of the Company’s Articles, and subject to the BCBCA, the Company must indemnify a director, former director or alternative
director of the Company and his or her heirs and legal personal representatives against all eligible penalties to which such person is
or may be liable, and the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably
incurred by such person in respect of that proceeding. Each director and alternate director is deemed to have contracted with the Company
on the terms of the indemnity contained in the Company’s Articles.
Under
Part 21.3 of the Company’s Articles, and subject to any restrictions in the BCBCA, the Company may indemnify any person.
Under
Part 21.4 of the Company’s Articles, the failure of a director, alternate director or officer of the Company to comply with the
BCBCA or the Company’s Articles or, if applicable, any former Companies Act (British Columbia) or former Articles, does
not invalidate any indemnity to which he or she is entitled under the Company’s Articles.
Under
Part 21.5 of the Company’s Articles, the Company may purchase and maintain insurance (and the Company has purchased such insurance)
for the benefit of any person (or his or her heirs or legal personal representatives) who:
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● |
is
or was a director, alternate director, officer, employee or agent of the Company; |
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● |
is
or was a director, alternate director, officer, employee or agent of a corporation at a time when the corporation is or was an affiliate
of the Company; |
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● |
at
the request of the Company, is or was a director, alternate director, officer, employee or agent of a corporation or of a partnership,
trust, joint venture or other unincorporated entity; or |
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● |
at
the request of the Company, holds or held a position equivalent to that of a director, alternate director or officer of a partnership,
trust, joint venture or other unincorporated entity; |
against
any liability incurred by him or her as such director, alternate director, officer, employee or agent or person who holds or held such
equivalent position.
*
* *
Insofar
as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the
Company pursuant to the foregoing provisions, the Company has been informed that in the opinion of the SEC such indemnification is against
public policy as expressed in the Securities Act, and is therefore unenforceable.
Item
7. Exemption from Registration Claimed.
Not
Applicable.
Item
8. Exhibits.
SIGNATURES
Pursuant
to the requirements of the Securities Act, the Registrant certifies that it has reasonable grounds to believe that it meets all of the
requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Los Angeles, State of California, on December 13, 2024.
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VERSES AI INC. |
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By: |
/s/ Gabriel René |
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Gabriel René |
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Chief Executive Officer (Principal Executive
Officer) |
POWER
OF ATTORNEY
KNOW
ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below hereby constitutes and appoints Gabriel René as
his true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him and in his name, place and
stead, in any and all capacities, to sign any and all amendments, including post-effective amendments, to this Registration Statement,
and any registration statement relating to the offering covered by this Registration Statement and filed pursuant to Rule 462(b) under
the Securities Act, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and
Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and
thing requisite and necessary to be done, as fully to all intents and purposes as he might or could do in person, hereby ratifying and
confirming all that said attorney-in-fact and agent or his substitute or substitutes may lawfully do or cause to be done by virtue hereof.
Pursuant
to the requirements of the Securities Act, this Registration Statement has been signed by the following persons in the capacities and
on the dates indicated.
/s/
Gabriel René |
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Chief
Executive Officer and Director |
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December
13, 2024 |
Gabriel
René |
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(Principal
Executive Officer) |
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/s/
Kevin Wilson |
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Chief
Financial Officer and Secretary |
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December
13, 2024 |
Kevin
Wilson |
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(Principal
Accounting and Financial Officer) |
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/s/
Dan Mapes |
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Dan
Mapes |
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President
and Director |
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December
13, 2024 |
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/s/
Michael Blum |
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Michael
Blum |
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Director |
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December
13, 2024 |
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/s/
G. Scott Paterson |
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G.
Scott Paterson |
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Director |
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December
13, 2024 |
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/s/
Jonathan De Vos |
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Jonathan
De Vos |
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Director |
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December
13, 2024 |
Exhibit
4.1
Incorporation
number: _________________
Chromos
Capital Corp.
(the “Company”)
The
Company has as its articles the following articles.
Full
name and signature of each incorporator |
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Date
of signing |
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DUMOULIN BLACK CORPORATE SERVICES LTD.
Per: |
____________________________ |
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Nov
19, 2020 |
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Authorized Signatory |
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ARTICLES
1. |
Interpretation |
3 |
2. |
Shares
and Share Certificates |
3 |
3. |
Issue
of Shares |
5 |
4. |
Share
Registers |
7 |
5. |
Share
Transfers |
7 |
6. |
Transmission
of Shares |
9 |
7. |
Purchase
of Shares |
9 |
8. |
Borrowing
Powers |
10 |
9. |
Alterations |
11 |
10. |
Meetings
of Shareholders |
12 |
11. |
Proceedings
at Meetings of Shareholders |
15 |
12. |
Votes
of Shareholders |
20 |
13. |
Directors |
24 |
14. |
Election
and Removal of Directors |
26 |
15. |
Alternate
Directors |
29 |
16. |
Powers
and Duties of Directors |
31 |
17. |
Interests
of Directors and Officers |
31 |
18. |
Proceedings
of Directors |
33 |
19. |
Executive
and Other Committees |
36 |
20. |
Officers |
38 |
21. |
Indemnification |
39 |
22. |
Dividends |
40 |
23. |
Accounting
Records and Auditors |
42 |
24. |
Notices |
42 |
25. |
Seal |
45 |
26. |
Prohibitions |
46 |
In
these Articles, unless the context otherwise requires:
(1) | “board
of directors”, “directors” and “board” mean the directors or
sole director of the Company for the time being; |
(2) | “Business
Corporations Act” means the Business Corporations Act (British Columbia)
from time to time in force and all amendments thereto and includes all regulations and amendments
thereto made pursuant to that Act; |
(3) | “Interpretation
Act” means the Interpretation Act (British Columbia) from time to time in
force and all amendments thereto and includes all regulations and amendments thereto made
pursuant to that Act; |
(4) | “legal
personal representative” means the personal or other legal representative of a shareholder; |
(5) | “registered
address” of a shareholder means the shareholder’s address as recorded in the
central securities register; |
(6) | “seal”
means the seal of the Company, if any. |
1.2 |
Business Corporations
Act and Interpretation Act Definitions
Applicable |
The
definitions in the Business Corporations Act and the definitions and rules of construction in the Interpretation Act, with
the necessary changes, so far as applicable, and unless the context requires otherwise, apply to these Articles as if they were set out
herein. If there is a conflict between a definition in the Business Corporations Act and a definition or rule in the Interpretation
Act relating to a term used in these Articles, the definition in the Business Corporations Act will prevail in relation to
the use of the term in these Articles. If there is a conflict or inconsistency between these Articles and the Business Corporations
Act, the Business Corporations Act will prevail.
2. |
Shares and Share Certificates |
2.1 |
Authorized
Share Structure |
The
authorized share structure of the Company consists of shares of the class or classes and series, if any, described in the Notice of Articles
of the Company.
2.2 |
Form
of Share Certificate |
Each
share certificate issued by the Company must comply with, and be signed as required by, the Business Corporations Act.
2.3 |
Shareholder
Entitled to Certificate
or Acknowledgment or
Written Notice |
Unless
the shares of which a shareholder is the registered owner are uncertificated shares, each shareholder is entitled, on request and at
the shareholder’s option, without charge, to (a) one share certificate representing the shares of each class or series of shares
registered in the shareholder’s name or (b) a non-transferable written acknowledgment of the shareholder’s right to obtain
such a share certificate, provided that in respect of a share held jointly by several persons, the Company is not bound to issue more
than one share certificate or acknowledgment and delivery of a share certificate or acknowledgment to one of several joint shareholders
or to a duly authorized agent of one of the joint shareholders will be sufficient delivery to all. Within a reasonable time after the
issue or transfer of a share that is an uncertificated share, the Company must send to the shareholder a written notice containing the
information required by the Business Corporations Act.
Any
share certificate, non-transferable written acknowledgment of a shareholder’s right to obtain a share certificate or written notice
of the issue or transfer of an uncertificated share may be sent to the shareholder by mail at the shareholder’s registered address
and neither the Company nor any director, officer or agent of the Company is liable for any loss to the shareholder because the share
certificate, acknowledgement or written notice is lost in the mail or stolen.
2.5 |
Replacement
of Worn Out or Defaced
Certificate or Acknowledgement |
If
the directors are satisfied that a share certificate or a non-transferable written acknowledgment of the shareholder’s right to
obtain a share certificate is worn out or defaced, they must, on production to them of the share certificate or acknowledgment, as the
case may be, and on such other terms, if any, as they think fit:
(1) | order
the share certificate or acknowledgment, as the case may be, to be cancelled; and |
(2) | issue
a replacement share certificate or acknowledgment, as the case may be. |
2.6 |
Replacement
of Lost, Stolen
or Destroyed Certificate or
Acknowledgment |
If
a share certificate or a non-transferable written acknowledgment of a shareholder’s right to obtain a share certificate is lost,
stolen or destroyed, a replacement share certificate or acknowledgment, as the case may be, must be issued to the person entitled to
that share certificate or acknowledgment, as the case may be, provided such person has complied with the requirements of the Business
Corporations Act.
2.7 |
Splitting
Share Certificates |
If
a shareholder surrenders a share certificate to the Company with a written request that the Company issue in the shareholder’s
name two or more share certificates, each representing a specified number of shares and in the aggregate representing the same number
of shares as the share certificate so surrendered, the Company must cancel the surrendered share certificate and issue replacement share
certificates in accordance with that request.
There
must be paid as a fee to the Company for the issuance of any share certificate under Articles 2.5, 2.6 or 2.7, the amount, if any, determined
by the directors, which must not exceed the amount prescribed under the Business Corporations Act.
2.9 |
Recognition
of Trusts |
Except
as required by law or statute or these Articles, no person will be recognized by the Company as holding any share upon any trust, and
the Company is not bound by or compelled in any way to recognize (even when having notice thereof) any equitable, contingent, future
or partial interest in any share or fraction of a share or (except as required by law or statute or these Articles or as ordered by a
court of competent jurisdiction) any other rights in respect of any share except an absolute right to the entirety thereof in the shareholder.
Subject
to the Business Corporations Act and the rights, if any, of the holders of issued shares of the Company, the Company may issue,
allot, sell or otherwise dispose of the unissued shares, and issued shares held by the Company, at the times, to the persons, including
directors, in the manner, on the terms and conditions and for the issue prices (including any premium at which shares with par value
may be issued) that the directors may determine. The issue price for a share with par value must be equal to or greater than the par
value of the share.
3.2 |
Commissions
and Discounts |
The
Company may at any time, pay a reasonable commission or allow a reasonable discount to any person in consideration of that person purchasing
or agreeing to purchase shares of the Company from the Company or any other person or procuring or agreeing to procure purchasers for
shares of the Company.
The
Company may pay such brokerage fee or other consideration as may be lawful for or in connection with the sale or placement of its securities.
Except
as provided for by the Business Corporations Act, no share may be issued until it is fully paid. A share is fully paid when:
(1) | consideration
is provided to the Company for the issue of the share by one or more of the following: |
| (a) | past
services performed for the Company; |
(2) | the
directors in their discretion have determined that the value of the consideration received
by the Company is equal to or greater than the issue price set for the share under Article
3.1. |
3.5 |
Share
Purchase Warrants and Rights |
Subject
to the Business Corporations Act, the Company may issue share purchase warrants, options, convertible debentures and rights upon
such terms and conditions as the directors determine, which share purchase warrants, options, convertible debentures and rights may be
issued alone or in conjunction with debentures, debenture stock, bonds, shares or any other securities issued or created by the Company
from time to time.
4.1 |
Central
Securities Register and Any
Branch Securities Register |
As
required by and subject to the Business Corporations Act, the Company must maintain a central securities register and may maintain
a branch securities register. The directors may, subject to the Business Corporations Act, appoint an agent to maintain the central
securities register or any branch securities register. The directors may also appoint one or more agents, including the agent which keeps
the central securities register, as transfer agent for its shares or any class or series of its shares, as the case may be, and the same
or another agent as registrar for its shares or such class or series of its shares, as the case may be. The directors may terminate such
appointment of any agent at any time and may appoint another agent in its place.
The
Company must not at any time close its central securities register.
5.1 |
Registering
Transfers |
A
transfer of a share of the Company must not be registered unless the Company or the transfer agent or registrar for the class or series
of share to be transferred has received:
(1) | a
duly signed instrument of transfer in respect of the share; |
(2) | if
a share certificate has been issued by the Company in respect of the share to be transferred,
that share certificate; |
(3) | if
a non-transferable written acknowledgment of the shareholder’s right to obtain a share
certificate has been issued by the Company in respect of the share to be transferred, that
acknowledgment; and |
(4) | such
other evidence, if any, as the Company or the transfer agent or registrar for the class or
series of share to be transferred may require to prove the title of the transferor or the
transferor’s right to transfer the share, the due signing of the instrument of transfer
and the right of the transferee to have the transfer registered. |
For
the purpose of this Article, delivery or surrender to the transfer agent or registrar which maintains the Company’s central securities
register or a branch securities register, if applicable, will constitute receipt by or surrender to the Company.
5.2 |
Form of Instrument of Transfer |
The
instrument of transfer in respect of any share of the Company must be either in the form, if any, on the back of the Company’s
share certificates or in any other form that may be approved from time to time by the directors or the transfer agent or registrar for
the class or series of share to be transferred.
5.3 |
Transferor Remains Shareholder |
Except
to the extent that the Business Corporations Act otherwise provides, the transferor of shares is deemed to remain the holder of
the shares until the name of the transferee is entered in a securities register of the Company in respect of the transfer.
5.4 |
Signing of Instrument of Transfer |
If
a shareholder, or his or her duly authorized attorney, signs an instrument of transfer in respect of shares registered in the name of
the shareholder, the signed instrument of transfer constitutes a complete and sufficient authority to the Company and its directors,
officers and agents to register the number of shares specified in the instrument of transfer or specified in any other manner, or, if
no number is specified, all the shares represented by the share certificate(s) or set out in the written acknowledgments deposited with
the instrument of transfer or, if the shares are uncertificated shares, then all of the uncertificated shares registered in the name
of the shareholder:
(1) | in
the name of the person named as transferee in that instrument of transfer; or |
(2) | if
no person is named as transferee in that instrument of transfer, in the name of the person
on whose behalf the instrument is deposited for the purpose of having the transfer registered. |
5.5 |
Enquiry as to Title Not Required |
Neither
the Company nor any director, officer or agent of the Company is bound to inquire into the title of the person named in the instrument
of transfer as transferee or, if no person is named as transferee in the instrument of transfer, of the person on whose behalf the instrument
is deposited for the purpose of having the transfer registered or is liable for any claim related to registering the transfer by the
shareholder or by any intermediate owner or holder of the shares, of any interest in the shares, of any share certificate representing
such shares or of any written acknowledgment of a right to obtain a share certificate for such shares.
There
must be paid as a fee to the Company, in relation to the registration of any transfer, the amount, if any, determined by the directors.
6. |
Transmission of Shares |
6.1 |
Legal Personal Representative Recognized on Death |
In
case of the death of a shareholder, the legal personal representative of the shareholder, or, in the case of shares registered in the
shareholder’s name and the name of another person in joint tenancy, the surviving joint holder will be the only person recognized
by the Company as having any title to the shareholder’s interest in the shares. Before recognizing a person as a legal personal
representative of the shareholder, the directors may require a declaration of transmission made by the legal personal representative
stating the particulars of the transmission, proof of appointment by a court of competent jurisdiction, a grant of letters probate, letters
of administration or such other evidence or documents as the directors consider appropriate.
6.2 |
Rights of Legal Personal Representative |
The
legal personal representative of a shareholder has the same rights, privileges and obligations with respect to the shares as were held
by the shareholder, including the right to transfer the shares in accordance with these Articles, provided the documents required by
the Business Corporations Act and the directors have been deposited with the Company. This Article 6.2 does not apply in the case
of the death of a shareholder with respect to shares registered in the shareholder’s name and the name of another person in joint
tenancy.
7.1 |
Company Authorized to Purchase Shares |
Subject
to Article 7.2, the special rights and restrictions attached to the shares of any class or series and the Business Corporations Act,
the Company may, if authorized by resolution of the directors, purchase, redeem or otherwise acquire any of its shares at the price and
upon the terms determined by the directors.
7.2 |
Purchase When Insolvent |
The
Company must not make a payment or provide any other consideration to purchase, redeem or otherwise acquire any of its shares if there
are reasonable grounds for believing that:
(1) | the
Company is insolvent; or |
(2) | making
the payment or providing the consideration would render the Company insolvent. |
If
the Company proposes to redeem some but not all of the shares of any class, the directors may, subject to any special rights and restrictions
attached to such class of shares, determine the manner in which the shares to be redeemed shall be selected.
7.4 |
Sale and Voting of Purchased Shares |
If
the Company retains a share which it has redeemed, purchased or otherwise acquired, the Company may sell, gift or otherwise dispose of
the share, but, while such share is held by the Company, it:
(1) | is
not entitled to vote the share at a meeting of its shareholders; |
(2) | must
not pay a dividend in respect of the share; and |
(3) | must
not make any other distribution in respect of the share. |
8.1 |
Powers of the Company |
The
Company, if authorized by the directors, may:
(1) | borrow
money in the manner and amount, on the security, from the sources and on the terms and conditions
that the directors consider appropriate; |
(2) | issue
bonds, debentures and other debt obligations either outright or as security for any liability
or obligation of the Company or any other person and at such discounts or premiums and on
such other terms as they consider appropriate; |
(3) | guarantee
the repayment of money by any other person or the performance of any obligation of any other
person; and |
(4) | mortgage,
charge, whether by way of specific or floating charge, grant a security interest in, or give
other security on, the whole or any part of the present and future assets and undertaking
of the Company. |
8.2 |
Bonds, Debentures, Debt |
Any
bonds, debentures or other debt obligations of the Company may be issued at a discount, premium or otherwise, or with special privileges
as to redemption, surrender, drawing, allotment of or conversion into or exchange for shares or other securities, attending and voting
at general meetings of the Company, appointment of directors or otherwise and may, by their terms, be assignable free from any equities
between the Company and the person to whom they were issued or any subsequent holder thereof, all as the directors may determine.
9.1 |
Alteration of Authorized Share Structure |
Subject
to Article 9.2 and the Business Corporations Act, the Company may:
(1) | by
directors’ resolution or by ordinary resolution, in each case as determined by the
directors: |
| (a) | create
one or more classes or series of shares or, if none of the shares of a class or series of
shares are allotted or issued, eliminate that class or series of shares; |
| (b) | increase,
reduce or eliminate the maximum number of shares that the Company is authorized to issue
of any class or series of shares or establish a maximum number of shares that the Company
is authorized to issue out of any class or series of shares for which no maximum is established; |
| (c) | subdivide
or consolidate all or any of its unissued, or fully paid issued, shares; |
| (d) | if
the Company is authorized to issue shares of a class of shares with par value: |
| (i) | decrease
the par value of those shares; or |
| (ii) | if
none of the shares of that class of shares are allotted or issued, increase the par value
of those shares; |
| (e) | change
all or any of its unissued shares with par value into shares without par value or any of
its unissued shares without par value into shares with par value or change all or any of
its fully paid issued shares with par value into shares without par value; or |
| (f) | alter
the identifying name of any of its shares; and |
(2) | by
ordinary resolution otherwise alter its shares or authorized share structure; |
and,
if applicable, alter its Notice of Articles and, if applicable, alter its Articles accordingly.
9.2 |
Special Rights and Restrictions |
Subject
to the Business Corporations Act, the Company may:
(1) | by
directors’ resolution or by ordinary resolution, in each case as determined by the
directors, create special rights or restrictions for, and attach those special rights or
restrictions to, the shares of any class or series of shares if none of those shares have
been issued; or vary or delete any special rights or restrictions attached to the shares
of any class or series of shares if none of those shares have been issued; and |
(2) | by
special resolution of the shareholders of the class or series affected, do any of the acts
in (1) above if any of the shares of the class or series of shares have been issued, |
and
alter its Notice of Articles and Articles accordingly.
The
Company may by directors’ resolution or by ordinary resolution, in each case as determined by the directors, authorize an alteration
of its Notice of Articles in order to change its name and may, by directors’ resolution or ordinary resolution, in each case as
determined by the directors, adopt or change any translation of that name.
If
the Business Corporations Act does not specify the type of resolution and these Articles do not specify another type of resolution,
the Company may by directors’ resolution or by ordinary resolution, in each case as determined by the directors, alter these Articles.
10. |
Meetings of Shareholders |
10.1 |
Annual General Meetings |
Unless
an annual general meeting is deferred or waived in accordance with the Business Corporations Act, the Company must hold its first
annual general meeting within 18 months after the date on which it was incorporated or otherwise recognized, and after that must hold
an annual general meeting at least once in each calendar year and not more than 15 months after the last annual reference date at such
time and place as may be determined by a resolution of the directors.
10.2 |
Resolution Instead of Annual General Meeting |
If
all the shareholders who are entitled to vote at an annual general meeting consent by a unanimous resolution to all of the business that
is required to be transacted at that annual general meeting, the annual general meeting is deemed to have been held on the date of the
unanimous resolution. The shareholders must, in any unanimous resolution passed under this Article 10.2, select as the Company’s
annual reference date a date that would be appropriate for the holding of the applicable annual general meeting.
10.3 |
Calling of Meetings of Shareholders |
The
directors may, at any time, call a meeting of shareholders.
10.4 |
Location of Meetings of Shareholders |
A
meeting of the Company may be held:
(1) | in
the Province of British Columbia; |
(2) | at
another location outside British Columbia if that location is: |
| (a) | approved
by resolution of the directors before the meeting is held; or |
| (b) | approved
in writing by the Registrar of Companies before the meeting is held. |
10.5 |
Notice for Meetings of Shareholders |
Subject
to Article 10.2, the Company must send notice of the date, time and location of any meeting of shareholders (including, without limitation,
any notice specifying the intention to propose a resolution as an exceptional resolution, a special resolution or a special separate
resolution, and any notice to consider approving an amalgamation into a foreign jurisdiction, an arrangement or the adoption of an amalgamation
agreement, and any notice of a general meeting, class meeting or series meeting), in the manner provided in these Articles, or in such
other manner, if any, as may be prescribed by directors’ resolution (whether previous notice of the resolution has been given or
not), to each shareholder entitled to attend the meeting, to each director and to the auditor of the Company, unless these Articles otherwise
provide, at least the following number of days before the meeting:
(1) | if
and for so long as the Company is a public company, 21 days; |
10.6 |
Notice of Resolution to which Shareholders May Dissent |
The
Company must send to each of its shareholders, whether or not their shares carry the right to vote, a notice of any meeting of shareholders
at which a resolution entitling shareholders to dissent is to be considered specifying the date of the meeting and containing a statement
advising of the right to send a notice of dissent together with a copy of the proposed resolution at least the following number of days
before the meeting:
(1) | if
and for so long as the Company is a public company, 21 days; or |
10.7 |
Record Date for Notice |
The
directors may set a date as the record date for the purpose of determining shareholders entitled to notice of any meeting of shareholders.
The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting
requisitioned by shareholders under the Business Corporations Act, by more than four months. The record date must not precede
the date on which the meeting is held by fewer than:
(1) | if
and for so long as the Company is a public company, 21 days; or |
If
no record date is set, the record date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no
notice is sent, the beginning of the meeting.
10.8 |
Record Date for Voting |
The
directors may set a date as the record date for the purpose of determining shareholders entitled to vote at any meeting of shareholders.
The record date must not precede the date on which the meeting is to be held by more than two months or, in the case of a general meeting
requisitioned by shareholders under the Business Corporations Act, by more than four months. If no record date is set, the record
date is 5 p.m. on the day immediately preceding the first date on which the notice is sent or, if no notice is sent, the beginning of
the meeting.
10.9 |
Failure to Give Notice and Waiver of Notice |
The
accidental omission to send notice of any meeting of shareholders to, or the non-receipt of any notice by, any of the persons entitled
to notice does not invalidate any proceedings at that meeting. Any person entitled to notice of a meeting of shareholders may, in writing
or otherwise, waive that entitlement or may agree to reduce the period of that notice. Attendance of a person at a meeting of shareholders
is a waiver of entitlement to notice of the meeting unless that person attends the meeting for the express purpose of objecting to the
transaction of any business on the grounds that the meeting is not lawfully called.
10.10 |
Notice of Special Business at Meetings of Shareholders |
If
a meeting of shareholders is to consider special business within the meaning of Article 11.1, the notice of meeting or a circular prepared
in connection with the meeting must:
(1) | state
the general nature of the special business; and |
(2) | if
the special business includes considering, approving, ratifying, adopting or authorizing
any document or the signing of or giving of effect to any document, have attached to it a
copy of the document or state that a copy of the document will be available for inspection
by shareholders: |
| (a) | at
the Company’s records office, or at such other reasonably accessible location in British
Columbia as is specified in the notice; and |
| (b) | during
statutory business hours on any one or more specified days before the day set for the holding
of the meeting. |
11. |
Proceedings at Meetings of Shareholders |
At
a meeting of shareholders, the following business is special business:
(1) | at
a meeting of shareholders that is not an annual general meeting, all business is special
business except business relating to the conduct of or voting at the meeting; |
(2) | at
an annual general meeting, all business is special business except for the following: |
| (a) | business
relating to the conduct of or voting at the meeting; |
| (b) | consideration
of any financial statements of the Company presented to the meeting; |
| (c) | consideration
of any reports of the directors or auditor; |
| (d) | the
setting or changing of the number of directors; |
| (e) | the
election or appointment of directors; |
| (f) | the
appointment of an auditor; |
| (g) | the
setting of the remuneration of an auditor; |
| (h) | business
arising out of a report of the directors not requiring the passing of a special resolution
or an exceptional resolution; and |
| (i) | any
other business which, under these Articles or the Business Corporations Act, may be
transacted at a meeting of shareholders without prior notice of the business being given
to the shareholders. |
The
majority of votes required for the Company to pass a special resolution at a general meeting of shareholders is two-thirds of the votes
cast on the resolution.
Subject
to the special rights and restrictions attached to the shares of any class or series of shares, the quorum for the transaction of business
at a meeting of shareholders is one person present or represented by proxy.
11.4 |
Persons Entitled to Attend Meeting |
In
addition to those persons who are entitled to vote at a meeting of shareholders, the only other persons entitled to be present at the
meeting are the directors, the president (if any), the secretary (if any), the assistant secretary (if any), any lawyer for the Company,
the auditor of the Company, any persons invited to be present at the meeting by the directors or by the chair of the meeting and any
persons entitled or required under the Business Corporations Act or these Articles to be present at the meeting; but if any of
those persons does attend the meeting, that person is not to be counted in the quorum and is not entitled to vote at the meeting unless
that person is a shareholder or proxyholder entitled to vote at the meeting.
11.5 |
Requirement of Quorum |
No
business, other than the election of a chair of the meeting and the adjournment of the meeting, may be transacted at any meeting of shareholders
unless a quorum of shareholders entitled to vote is present at the commencement of the meeting, but such quorum need not be present throughout
the meeting.
If,
within one-half hour from the time set for the holding of a meeting of shareholders, a quorum is not present:
(1) | in
the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and |
(2) | in
the case of any other meeting of shareholders, the meeting stands adjourned to the same day
in the next week at the same time and place. |
11.7 |
Lack of Quorum at Succeeding Meeting |
If,
at the meeting to which the meeting referred to in Article 11.6(2) was adjourned, a quorum is not present within one-half hour from the
time set for the holding of the meeting, the meeting shall be terminated.
The
following individual is entitled to preside as chair at a meeting of shareholders:
(1) | the
chair of the board, if any; or |
(2) | if
the chair of the board is absent or unwilling to act as chair of the meeting, the president,
if any. |
11.9 |
Selection of Alternate Chair |
If,
at any meeting of shareholders, there is no chair of the board or president willing to act as chair of the meeting or present within
15 minutes after the time set for holding the meeting, or if the chair of the board and the president have advised the secretary, if
any, or any director present at the meeting, that they will not be present at the meeting, the directors present must choose a director,
officer or corporate counsel to be chair of the meeting or if none of the above persons are present or if they decline to take the chair,
the shareholders entitled to vote at the meeting who are present in person or by proxy may choose any person present at the meeting to
chair the meeting.
The
chair of a meeting of shareholders may, and if so directed by the meeting must, adjourn the meeting from time to time and from place
to place, but no business may be transacted at any adjourned meeting other than the business left unfinished at the meeting from which
the adjournment took place.
11.11 |
Notice of Adjourned Meeting |
It
is not necessary to give any notice of an adjourned meeting of shareholders or of the business to be transacted at an adjourned meeting
of shareholders except that, when a meeting is adjourned for 30 days or more, notice of the adjourned meeting must be given as in the
case of the original meeting.
11.12 |
Decisions by Show of Hands or Poll |
Subject
to the Business Corporations Act, every motion put to a vote at a meeting of shareholders will be decided on a show of hands unless
a poll, before or on the declaration of the result of the vote by show of hands, is directed by the chair or demanded by any shareholder
entitled to vote who is present in person or by proxy.
11.13 |
Declaration of Result |
The
chair of a meeting of shareholders must declare to the meeting the decision on every question in accordance with the result of the show
of hands or the poll, as the case may be, and that decision must be entered in the minutes of the meeting. A declaration of the chair
that a resolution is carried by the necessary majority or is defeated is, unless a poll is directed by the chair or demanded under Article
11.12, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or against the resolution.
11.14 |
Motion Need Not be Seconded |
No
motion proposed at a meeting of shareholders need be seconded unless the chair of the meeting rules otherwise, and the chair of any meeting
of shareholders is entitled to propose or second a motion.
In
case of an equality of votes, the chair of a meeting of shareholders, either on a show of hands or on a poll, does not have a second
or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder.
11.16 |
Manner of Taking Poll |
Subject
to Article 11.17, if a poll is duly demanded at a meeting of shareholders:
(1) | the
poll must be taken: |
| (a) | at
the meeting, or within seven days after the date of the meeting, as the chair of the meeting
directs; and |
| (b) | in
the manner, at the time and at the place that the chair of the meeting directs; |
(2) | the
result of the poll is deemed to be the decision of the meeting at which the poll is demanded;
and |
(3) | the
demand for the poll may be withdrawn by the person who demanded it. |
11.17 |
Demand for Poll on Adjournment |
A
poll demanded at a meeting of shareholders on a question of adjournment must be taken immediately at the meeting.
11.18 |
Chair Must Resolve Dispute |
In
the case of any dispute as to the admission or rejection of a vote given on a poll, the chair of the meeting must determine the dispute,
and his or her determination made in good faith is final and conclusive.
On
a poll, a shareholder entitled to more than one vote need not cast all the votes in the same way.
11.20 |
No Demand for Poll on Election of Chair |
No
poll may be demanded in respect of the vote by which a chair of a meeting of shareholders is elected.
11.21 |
Demand for Poll Not to Prevent Continuance of Meeting |
The
demand for a poll at a meeting of shareholders does not, unless the chair of the meeting so rules, prevent the continuation of a meeting
for the transaction of any business other than the question on which a poll has been demanded.
11.22 |
Retention of Ballots and Proxies |
The
Company must, for at least three months after a meeting of shareholders, keep each ballot cast on a poll and each proxy voted at the
meeting, and, during that period, make them available for inspection during normal business hours by any shareholder or proxy holder
entitled to vote at the meeting. At the end of such three month period, the Company may destroy such ballots and proxies.
12. |
Votes of Shareholders |
12.1 |
Number of Votes by Shareholder or by Shares |
Subject
to any special rights or restrictions attached to any shares and to the restrictions imposed on joint shareholders under Article 12.3:
(1) | on
a vote by show of hands, every person present who is a shareholder or proxy holder and entitled
to vote on the matter has one vote; and |
(2) | on
a poll, every shareholder entitled to vote on the matter has one vote in respect of each
share entitled to be voted on the matter and held by that shareholder and may exercise that
vote either in person or by proxy. |
12.2 |
Votes of Persons in Representative Capacity |
A
person who is not a shareholder may vote at a meeting of shareholders, whether on a show of hands or on a poll, and may appoint a proxy
holder to act at the meeting, if, before doing so, the person satisfies the chair of the meeting, or the directors, that the person is
a legal personal representative or a trustee in bankruptcy for a shareholder who is entitled to vote at the meeting.
12.3 |
Votes by Joint Holders |
If
there are joint shareholders registered in respect of any share:
(1) | any
one of the joint shareholders may vote at any meeting of shareholders, either personally
or by proxy, in respect of the share as if that joint shareholder were solely entitled to
it; or |
(2) | if
more than one of the joint shareholders is present at any meeting of shareholders, personally
or by proxy, and more than one of them votes in respect of that share, then only the vote
of the joint shareholder present whose name stands first on the central securities register
in respect of the share will be counted. |
12.4 |
Legal Personal Representatives as Joint Shareholders |
Two
or more legal personal representatives of a shareholder in whose sole name any share is registered are, for the purposes of Article 12.3,
deemed to be joint shareholders registered in respect of that share.
12.5 |
Representative of a Corporate Shareholder |
If
a corporation, that is not a subsidiary of the Company, is a shareholder, that corporation may appoint a person to act as its representative
at any meeting of shareholders of the Company, and:
(1) | for
that purpose, the instrument appointing a representative must be received: |
| (a) | at
the registered office of the Company or at any other place specified, in the notice calling
the meeting, for the receipt of proxies, at least the number of business days specified in
the notice for the receipt of proxies, or if no number of days is specified, two business
days before the day set for the holding of the meeting or any adjourned meeting; or |
| (b) | by
the chair of the meeting at the meeting or adjourned meeting or by a person designated by
the chair of the meeting or adjourned meeting; |
(2) | if
a representative is appointed under this Article 12.5: |
| (a) | the
representative is entitled to exercise in respect of and at that meeting the same rights
on behalf of the corporation that the representative represents as that corporation could
exercise if it were a shareholder who is an individual, including, without limitation, the
right to appoint a proxy holder; and |
| (b) | the
representative, if present at the meeting, is to be counted for the purpose of forming a
quorum and is deemed to be a shareholder present in person at the meeting. |
Evidence
of the appointment of any such representative may be sent to the Company by written instrument, fax or any other method of transmitting
legibly recorded messages. Notwithstanding the foregoing, a corporation that is a shareholder may appoint a proxy holder.
12.6 |
Proxy Provisions Do Not Apply to All Companies |
Articles
12.7 to 12.15 do not apply to the Company if and for so long as it is a public company or a pre-existing reporting company which has
the Statutory Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions apply.
12.7 |
Appointment of Proxy Holders |
Every
shareholder of the Company, including a corporation that is a shareholder but not a subsidiary of the Company, entitled to vote at a
meeting of shareholders may, by proxy, appoint up to two proxy holders to attend and act at the meeting in the manner, to the extent
and with the powers conferred by the proxy.
12.8 |
Alternate Proxy Holders |
A
shareholder may appoint one or more alternate proxy holders to act in the place of an absent proxy holder.
12.9 |
When Proxy Holder Need Not Be Shareholder |
A
person must not be appointed as a proxy holder unless the person is a shareholder, although a person who is not a shareholder may be
appointed as a proxy holder if:
(1) | the
person appointing the proxy holder is a corporation or a representative of a corporation
appointed under Article 12.5; |
(2) | the
Company has at the time of the meeting for which the proxy holder is to be appointed only
one shareholder entitled to vote at the meeting; or |
(3) | the
shareholders present in person or by proxy at and entitled to vote at the meeting for which
the proxy holder is to be appointed, by a resolution on which the proxy holder is not entitled
to vote but in respect of which the proxy holder is to be counted in the quorum, permit the
proxy holder to attend and vote at the meeting. |
A
proxy for a meeting of shareholders must:
(1) | be
received at the registered office of the Company or at any other place specified, in the
notice calling the meeting, for the receipt of proxies, at least the number of business days
specified in the notice, or if no number of days is specified, two business days before the
day set for the holding of the meeting or any adjourned meeting; or |
(2) | unless
the notice provides otherwise, be received, at the meeting or any adjourned meeting, by the
chair of the meeting or any adjourned meeting or by a person designated by the chair of the
meeting or adjourned meeting. |
A
proxy may be sent to the Company by written instrument, fax or any other method of transmitting legibly recorded messages.
12.11 |
Validity of Proxy Vote |
A
vote given in accordance with the terms of a proxy is valid notwithstanding the death or incapacity of the shareholder giving the proxy
and despite the revocation of the proxy or the revocation of the authority under which the proxy is given, unless notice in writing of
that death, incapacity or revocation is received:
(1) | at
the registered office of the Company, at any time up to and including the last business day
before the day set for the holding of the meeting or any adjourned meeting at which the proxy
is to be used; or |
(2) | at
the meeting or any adjourned meeting by the chair of the meeting or adjourned meeting, before
any vote in respect of which the proxy has been given or has been taken. |
A
proxy, whether for a specified meeting or otherwise, must be either in the following form or in any other form approved by the directors
or the chair of the meeting:
[name
of company]
(the “Company”)
The
undersigned, being a shareholder of the Company, hereby appoints [name] or, failing that person, [name], as proxy holder for the undersigned
to attend, act and vote for and on behalf of the undersigned at the meeting of shareholders of the Company to be held on [month, day,
year] and at any adjournment of that meeting.
Number
of shares in respect of which this proxy is given (if no number is specified, then this proxy is given in respect of all shares registered
in the name of the undersigned):
|
|
|
Signed [month, day, year] |
|
|
|
|
|
[Signature of shareholder] |
|
|
|
|
|
[Name of shareholder—printed] |
12.13 |
Revocation of Proxy |
Subject
to Article 12.14, every proxy may be revoked by an instrument in writing that is received:
(1) | at
the registered office of the Company at any time up to and including the last business day
before the day set for the holding of the meeting or any adjourned meeting at which the proxy
is to be used; or |
(2) | at
the meeting or any adjourned meeting, by the chair of the meeting or adjourned meeting, before
any vote in respect of which the proxy has been given has been taken. |
12.14 |
Revocation of Proxy Must Be Signed |
An
instrument referred to in Article 12.13 must be signed as follows:
(1) | if
the shareholder for whom the proxy holder is appointed is an individual, the instrument must
be signed by the shareholder or his or her legal personal representative or trustee in bankruptcy; |
(2) | if
the shareholder for whom the proxy holder is appointed is a corporation, the instrument must
be signed by the corporation or by a representative appointed for the corporation under Article
12.5. |
12.15 |
Production of Evidence of Authority to Vote |
The
chair of any meeting of shareholders may, but need not, inquire into the authority of any person to vote at the meeting and may, but
need not, demand from that person production of evidence as to the existence of the authority to vote.
13.1 |
First Directors; Number of Directors |
The
first directors are the persons designated as directors of the Company in the Notice of Articles that applies to the Company when it
is recognized under the Business Corporations Act. The number of directors, excluding additional directors appointed under Article
14.8, is set at:
(1) | subject
to paragraphs (2) and (3), the number of directors that is equal to the number of the Company’s
first directors; |
(2) | if
the Company is a public company, the greater of three and the most recently set of: |
| (a) | the
number of directors elected by ordinary resolution (whether or not previous notice of the
resolution was given); and |
| (b) | the
number of directors set under Article 14.4; |
(3) | if
the Company is not a public company, the most recently set of: |
| (a) | the
number of directors elected by ordinary resolution (whether or not previous notice of the
resolution was given); and |
| (b) | the
number of directors set under Article 14.4. |
13.2 | Change in Number
of Directors |
If
the number of directors is set under Articles 13.1(2)(a) or 13.1(3)(a):
(1) | the
shareholders may elect or appoint the directors needed to fill any vacancies in the board
of directors up to that number; |
(2) | if
the shareholders do not elect or appoint the directors needed to fill any vacancies in the
board of directors up to that number contemporaneously with the setting of that number, then
the directors, subject to Article 14.8, may appoint, or the shareholders may elect or appoint,
directors to fill those vacancies. |
13.3 |
Directors’ Acts Valid Despite Vacancy |
An
act or proceeding of the directors is not invalid merely because fewer than the number of directors set or otherwise required under these
Articles is in office.
13.4 |
Qualifications of Directors |
A
director is not required to hold a share in the capital of the Company as qualification for his or her office but must be qualified as
required by the Business Corporations Act to become, act or continue to act as a director.
13.5 |
Remuneration of Directors |
The
directors are entitled to the remuneration for acting as directors, if any, as the directors may from time to time determine. If the
directors so decide, the remuneration of the directors, if any, will be determined by the shareholders. That remuneration may be in addition
to any salary or other remuneration paid to any officer or employee of the Company as such, who is also a director.
13.6 |
Reimbursement of Expenses of Directors |
The
Company must reimburse each director for the reasonable expenses that he or she may incur in and about the business of the Company.
13.7 |
Special Remuneration for Directors |
If
any director performs any professional or other services for the Company that in the opinion of the directors are outside the ordinary
duties of a director, or if any director is otherwise specially occupied in or about the Company’s business, he or she may be paid
remuneration fixed by the directors, or, at the option of that director, fixed by ordinary resolution, and such remuneration may be either
in addition to, or in substitution for, any other remuneration that he or she may be entitled to receive.
13.8 |
Gratuity, Pension or Allowance on Retirement of Director |
Unless
otherwise determined by ordinary resolution, the directors on behalf of the Company may pay a gratuity or pension or allowance on retirement
to any director or to his or her spouse or dependants and may make contributions to any fund and pay premiums for the purchase or provision
of any such gratuity, pension or allowance.
14. |
Election and Removal of Directors |
14.1 |
Election at Annual General Meeting |
At
every annual general meeting and in every unanimous resolution contemplated by Article 10.2:
(1) | the
shareholders entitled to vote at the annual general meeting for the election of directors
must elect, or in the unanimous resolution appoint, a board of directors consisting of the
number of directors for the time being set under these Articles; and |
(2) | those
directors whose term of office expires at the annual general meeting cease to hold office
immediately before the election or appointment of directors under paragraph (1), but are
eligible for re-election or re-appointment. |
14.2 |
Consent to be a Director |
No
election, appointment or designation of an individual as a director is valid unless:
(1) | that
individual consents to be a director in the manner provided for in the Business Corporations
Act; |
(2) | that
individual is elected or appointed at a meeting at which the individual is present and the
individual does not refuse, at the meeting, to be a director; or |
(3) | with
respect to first directors, the designation is otherwise valid under the Business Corporations
Act. |
14.3 |
Failure to Elect or Appoint Directors |
If:
(1) | the
Company fails to hold an annual general meeting, and all the shareholders who are entitled
to vote at an annual general meeting fail to pass the unanimous resolution contemplated by
Article 10.2, on or before the date by which the annual general meeting is required to be
held under the Business Corporations Act; or |
(2) | the
shareholders fail, at the annual general meeting or in the unanimous resolution contemplated
by Article 10.2, to elect or appoint any directors; |
then
each director then in office continues to hold office until the earlier of:
(3) | when
his or her successor is elected or appointed; and |
(4) | when
he or she otherwise ceases to hold office under the Business Corporations Act or these
Articles. |
14.4 |
Places of Retiring Directors Not Filled |
If,
at any meeting of shareholders at which there should be an election of directors, the places of any of the retiring directors are not
filled by that election, those retiring directors who are not re-elected and who are asked by the newly elected directors to continue
in office will, if willing to do so, continue in office to complete the number of directors for the time being set pursuant to these
Articles until further new directors are elected at a meeting of shareholders convened for that purpose. If any such election or continuance
of directors does not result in the election or continuance of the number of directors for the time being set pursuant to these Articles,
the number of directors of the Company is deemed to be set at the number of directors actually elected or continued in office.
14.5 |
Directors May Fill Casual Vacancies |
Any
casual vacancy occurring in the board of directors may be filled by the directors.
14.6 |
Remaining Directors’ Power to Act |
The
directors may act notwithstanding any vacancy in the board of directors, but if the Company has fewer directors in office than the number
set pursuant to these Articles as the quorum of directors, the directors may only act for the purpose of appointing directors up to that
number or of calling a meeting of shareholders for the purpose of filling any vacancies on the board of directors or, subject to the
Business Corporations Act, for any other purpose.
14.7 |
Shareholders May Fill Vacancies |
If
the Company has no directors or fewer directors in office than the number set pursuant to these Articles as the quorum of directors,
the shareholders may elect or appoint directors to fill any vacancies on the board of directors.
14.8 |
Additional Directors |
Notwithstanding
Articles 13.1 and 13.2, between annual general meetings or unanimous resolutions contemplated by Article 10.2, the directors may appoint
one or more additional directors, but the number of additional directors appointed under this Article 14.8 must not at any time exceed:
(1) | one-third
of the number of first directors, if, at the time of the appointments, one or more of the
first directors have not yet completed their first term of office; or |
(2) | in
any other case, one-third of the number of the current directors who were elected or appointed
as directors other than under this Article 14.8. |
Any
director so appointed ceases to hold office immediately before the next election or appointment of directors under Article 14.1(1), but
is eligible for re-election or re-appointment.
14.9 |
Ceasing to be a Director |
A
director ceases to be a director when:
(1) | the
term of office of the director expires; |
(3) | the
director resigns as a director by notice in writing provided to the Company or a lawyer for
the Company; or |
(4) | the
director is removed from office pursuant to Articles 14.10 or 14.11. |
14.10 |
Removal of Director by Shareholders |
The
Company may remove any director before the expiration of his or her term of office by special resolution. In that event, the shareholders
may elect, or appoint by ordinary resolution, a director to fill the resulting vacancy. If the shareholders do not elect or appoint a
director to fill the resulting vacancy contemporaneously with the removal, then the directors may appoint or the shareholders may elect,
or appoint by ordinary resolution, a director to fill that vacancy.
14.11 |
Removal of Director by Directors |
The
directors may remove any director before the expiration of his or her term of office if the director is convicted of an indictable offence,
or if the director ceases to be qualified to act as a director of a company and does not promptly resign, and the directors may appoint
a director to fill the resulting vacancy.
15.1 |
Appointment of Alternate Director |
Any
director (an “appointor”) may by notice in writing received by the Company appoint any person (an “appointee”)
who is qualified to act as a director to be his or her alternate to act in his or her place at meetings of the directors or committees
of the directors at which the appointor is not present unless (in the case of an appointee who is not a director) the directors have
reasonably disapproved the appointment of such person as an alternate director and have given notice to that effect to his or her appointor
within a reasonable time after the notice of appointment is received by the Company.
Every
alternate director so appointed is entitled to notice of meetings of the directors and of committees of the directors of which his or
her appointor is a member and to attend and vote as a director at any such meetings at which his or her appointor is not present.
15.3 |
Alternate for More Than One Director Attending Meetings |
A
person may be appointed as an alternate director by more than one director, and an alternate director:
(1) | will
be counted in determining the quorum for a meeting of directors once for each of his or her
appointors and, in the case of an appointee who is also a director, once more in that capacity; |
(2) | has
a separate vote at a meeting of directors for each of his or her appointors and, in the case
of an appointee who is also a director, an additional vote in that capacity; |
(3) | will
be counted in determining the quorum for a meeting of a committee of directors once for each
of his or her appointors who is a member of that committee and, in the case of an appointee
who is also a member of that committee as a director, once more in that capacity; and |
(4) | has
a separate vote at a meeting of a committee of directors for each of his or her appointors
who is a member of that committee and, in the case of an appointee who is also a member of
that committee as a director, an additional vote in that capacity. |
Every
alternate director, if authorized by the notice appointing him or her, may sign in place of his or her appointor any resolutions to be
consented to in writing.
15.5 |
Alternate Director Not an Agent |
Every
alternate director is deemed not to be the agent of his or her appointor.
15.6 |
Revocation of Appointment of Alternate Director |
An
appointor may at any time, by notice in writing received by the Company, revoke the appointment of an alternate director appointed by
him or her.
15.7 |
Ceasing to be an Alternate Director |
The
appointment of an alternate director ceases when:
(1) | his
or her appointor ceases to be a director and is not promptly re-elected or re-appointed; |
(2) | the
alternate director dies; |
(3) | the
alternate director resigns as an alternate director by notice in writing provided to the
Company or a lawyer for the Company; |
(4) | the
alternate director ceases to be qualified to act as a director; or |
(5) | his
or her appointor revokes the appointment of the alternate director. |
15.8 |
Remuneration and Expenses of Alternate Director |
The
Company may reimburse an alternate director for the reasonable expenses that would be properly reimbursed if he or she were a director,
and the alternate director is entitled to receive from the Company such proportion, if any, of the remuneration otherwise payable to
the appointor as the appointor may from time to time direct.
16. |
Powers and Duties of Directors |
16.1 |
Powers of Management |
The
directors must, subject to the Business Corporations Act and these Articles, manage or supervise the management of the business
and affairs of the Company and have the authority to exercise all such powers of the Company as are not, by the Business Corporations
Act or by these Articles, required to be exercised by the shareholders of the Company.
16.2 |
Appointment of Attorney of Company |
The
directors may from time to time, by power of attorney or other instrument, under seal if so required by law, appoint any person to be
the attorney of the Company for such purposes, and with such powers, authorities and discretions (not exceeding those vested in or exercisable
by the directors under these Articles and excepting the power to fill vacancies in the board of directors, to remove a director, to change
the membership of, or fill vacancies in, any committee of the directors, to appoint or remove officers appointed by the directors and
to declare dividends) and for such period, and with such remuneration and subject to such conditions as the directors may think fit.
Any such power of attorney may contain such provisions for the protection or convenience of persons dealing with such attorney as the
directors think fit. Any such attorney may be authorized by the directors to sub-delegate all or any of the powers, authorities and discretions
for the time being vested in him or her.
17. |
Interests of Directors and Officers |
17.1 |
Obligation to Account for Profits |
A
director or senior officer who holds a disclosable interest (as that term is used in the Business Corporations Act) in a contract
or transaction into which the Company has entered or proposes to enter is liable to account to the Company for any profit that accrues
to the director or senior officer under or as a result of the contract or transaction only if and to the extent provided in the Business
Corporations Act.
17.2 |
Restrictions on Voting by Reason of Interest |
A
director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter is not
entitled to vote on any directors’ resolution to approve that contract or transaction, unless all the directors have a disclosable
interest in that contract or transaction, in which case any or all of those directors may vote on such resolution.
17.3 |
Interested Director Counted in Quorum |
A
director who holds a disclosable interest in a contract or transaction into which the Company has entered or proposes to enter and who
is present at the meeting of directors at which the contract or transaction is considered for approval may be counted in the quorum at
the meeting whether or not the director votes on any or all of the resolutions considered at the meeting.
17.4 |
Disclosure of Conflict of Interest or Property |
A
director or senior officer who holds any office or possesses any property, right or interest that could result, directly or indirectly,
in the creation of a duty or interest that materially conflicts with that individual’s duty or interest as a director or senior
officer, must disclose the nature and extent of the conflict as required by the Business Corporations Act.
17.5 |
Director Holding Other Office in the Company |
A
director may hold any office or place of profit with the Company, other than the office of auditor of the Company, in addition to his
or her office of director for the period and on the terms (as to remuneration or otherwise) that the directors may determine.
No
director or intended director is disqualified by his or her office from contracting with the Company either with regard to the holding
of any office or place of profit the director holds with the Company or as vendor, purchaser or otherwise, and no contract or transaction
entered into by or on behalf of the Company in which a director is in any way interested is liable to be voided for that reason.
17.7 |
Professional Services by Director or Officer |
Subject
to the Business Corporations Act, a director or officer, or any person in which a director or officer has an interest, may act
in a professional capacity for the Company, except as auditor of the Company, and the director or officer or such person is entitled
to remuneration for professional services as if that director or officer were not a director or officer.
17.8 |
Director or Officer in Other Corporations |
A
director or officer may be or become a director, officer or employee of, or otherwise interested in, any person in which the Company
may be interested as a shareholder or otherwise, and, subject to the Business Corporations Act, the director or officer is not
accountable to the Company for any remuneration or other benefits received by him or her as director, officer or employee of, or from
his or her interest in, such other person.
18. |
Proceedings of Directors |
18.1 |
Meetings of Directors |
The
directors may meet together for the conduct of business, adjourn and otherwise regulate their meetings as they think fit, and meetings
of the directors held at regular intervals may be held at the place, at the time and on the notice, if any, as the directors may from
time to time determine.
Questions
arising at any meeting of directors are to be decided by a majority of votes and, in the case of an equality of votes, the chair of the
meeting does not have a second or casting vote.
The
following individual is entitled to preside as chair at a meeting of directors:
(1) | the
chair of the board, if any; |
(2) | in
the absence of the chair of the board or if designated by the chair, the president, a director
or other officer; or |
(3) | any
other director or officer chosen by the directors if: |
| (a) | neither
the chair of the board nor the president is present at the meeting within 15 minutes after
the time set for holding the meeting; |
| (b) | neither
the chair of the board nor the president is willing to chair the meeting; or |
| (c) | the
chair of the board and the president have advised the secretary, if any, or any other director,
that they will not be present at the meeting. |
18.4 |
Meetings by Telephone or Other Communications Medium |
A
director may participate in a meeting of the directors or of any committee of the directors:
(3) | with
the consent of all directors who wish to participate in the meeting, by other communications
medium; |
if
all directors participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate
with each other. A director who participates in a meeting in a manner contemplated by this Article 18.4 is deemed for all purposes of
the Business Corporations Act and these Articles to be present at the meeting and to have agreed to participate in that manner.
A
director may, and the secretary or an assistant secretary of the Company, if any, on the request of a director must, call a meeting of
the directors at any time.
Other
than for meetings held at regular intervals as determined by the directors pursuant to Article 18.1, reasonable notice of each meeting
of the directors, specifying the place, day and time of that meeting must be given to each of the directors and the alternate directors
by any method set out in Article 24.1 or orally or by telephone.
18.7 |
When Notice Not Required |
It
is not necessary to give notice of a meeting of the directors to a director or an alternate director if:
(1) | the
meeting is to be held immediately following a meeting of shareholders at which that director
was elected or appointed, or is the meeting of the directors at which that director is appointed;
or |
(2) | the
director or alternate director, as the case may be, has waived notice of the meeting. |
18.8 |
Meeting Valid Despite Failure to Give Notice |
The
accidental omission to give notice of any meeting of directors to, or the non-receipt of any notice by, any director or alternate director,
does not invalidate any proceedings at that meeting.
18.9 |
Waiver of Notice of Meetings |
Any
director or alternate director may send to the Company a document signed by him or her waiving notice of any past, present or future
meeting or meetings of the directors and may at any time withdraw that waiver with respect to meetings held after that withdrawal. After
sending a waiver with respect to all future meetings and until that waiver is withdrawn, no notice of any meeting of the directors need
be given to that director and, unless the director otherwise requires by notice in writing to the Company, to his or her alternate director,
and all meetings of the directors so held are deemed not to be improperly called or constituted by reason of notice not having been given
to such director or alternate director. Attendance of a director or alternate director at a meeting of directors is a waiver of notice
of the meeting unless that director or alternate director attends the meeting for the express purpose of objecting to the transaction
of any business on the grounds that the meeting is not lawfully called.
The
quorum necessary for the transaction of the business of the directors may be set by the directors and, if not so set, is deemed to be
set at a majority of directors or, if the number of directors is set at one, is deemed to be set at one director, and that director may
constitute a meeting.
18.11 |
Validity of Acts Where Appointment Defective |
Subject
to the Business Corporations Act, an act of a director or officer is not invalid merely because of an irregularity in the election
or appointment or a defect in the qualification of that director or officer.
18.12 |
Consent Resolutions in Writing |
A
resolution of the directors or of any committee of the directors may be passed without a meeting:
(1) | in
all cases, if each of the directors entitled to vote on the resolution consents to it in
writing; or |
(2) | in
the case of a resolution to approve a contract or transaction in respect of which a director
has disclosed that he or she has or may have a disclosable interest, if each of the other
directors who have not made such a disclosure consents in writing to the resolution. |
A
consent in writing under this Article may be by signed document, fax, e-mail or any other method of transmitting legibly recorded messages.
A consent in writing may be in two or more counterparts which together are deemed to constitute one consent in writing. A resolution
of the directors or of any committee of the directors passed in accordance with this Article 18.12 is effective on the date stated in
the consent in writing or on the latest date stated on any counterpart and is deemed to be a proceeding at a meeting of directors or
of the committee of the directors and to be as valid and effective as if it had been passed at a meeting of the directors or of the committee
of the directors that satisfies all the requirements of the Business Corporations Act and all the requirements of these Articles
relating to meetings of the directors or of a committee of the directors.
19. |
Executive and Other Committees |
19.1 |
Appointment and Powers of Executive Committee |
The
directors may, by resolution, appoint an executive committee consisting of the director or directors that they consider appropriate,
and this committee has, during the intervals between meetings of the board of directors, all of the directors’ powers, except:
(1) | the
power to fill vacancies in the board of directors; |
(2) | the
power to remove a director; |
(3) | the
power to change the membership of, or fill vacancies in, any committee of the directors;
and |
(4) | such
other powers, if any, as may be set out in the resolution or any subsequent directors’
resolution. |
19.2 |
Appointment and Powers of Other Committees |
The
directors may, by resolution:
(1) | appoint
one or more committees (other than the executive committee) consisting of the director or
directors that they consider appropriate; |
(2) | delegate
to a committee appointed under paragraph (1) any of the directors’ powers, except: |
| (a) | the
power to fill vacancies in the board of directors; |
| (b) | the
power to remove a director; |
| (c) | the
power to change the membership of, or fill vacancies in, any committee of the directors;
and |
| (d) | the
power to appoint or remove officers appointed by the directors; and |
(3) | make
any delegation referred to in paragraph (2) subject to the conditions set out in the resolution
or any subsequent directors’ resolution. |
19.3 |
Obligations of Committees |
Any
committee appointed under Articles 19.1 or 19.2, in the exercise of the powers delegated to it, must:
(1) | conform
to any rules that may from time to time be imposed on it by the directors; and |
(2) | report
every act or thing done in exercise of those powers at such times and in such manner and
form as the directors may require. |
The
directors may, at any time, with respect to a committee appointed under Articles 19.1 or 19.2:
(1) | revoke
or alter the authority given to the committee, or override a decision made by the committee,
except as to acts done before such revocation, alteration or overriding; |
(2) | terminate
the appointment of, or change the membership of, the committee; and |
(3) | fill
vacancies in the committee. |
Subject
to Article 19.3(1) and unless the directors otherwise provide in the resolution appointing the committee or in any subsequent resolution,
with respect to a committee appointed under Articles 19.1 or 19.2:
(1) | the
committee may meet and adjourn as it thinks proper; |
(2) | the
committee may elect a chair of its meetings but, if no chair of a meeting is elected, or
if at a meeting the chair of the meeting is not present within 15 minutes after the time
set for holding the meeting, the directors present who are members of the committee may choose
one of their number to chair the meeting; |
(3) | a
majority of the members of the committee constitutes a quorum of the committee; and |
(4) | questions
arising at any meeting of the committee are determined by a majority of votes of the members
present, and in case of an equality of votes, the chair of the meeting does not have a second
or casting vote. |
20.1 |
Directors May Appoint Officers |
The
directors may, from time to time, appoint such officers, if any, as the directors determine and the directors may, at any time, terminate
any such appointment.
20.2 |
Functions, Duties and Powers of Officers |
The
directors may, for each officer:
(1) | determine
the functions and duties of the officer; |
(2) | entrust
to and confer on the officer any of the powers exercisable by the directors on such terms
and conditions and with such restrictions as the directors think fit; and |
(3) | revoke,
withdraw, alter or vary all or any of the functions, duties and powers of the officer. |
No
officer may be appointed unless that officer is qualified in accordance with the Business Corporations Act. One person may hold
more than one position as an officer of the Company. Any person appointed as the chair of the board or as the managing director must
be a director. Any other officer need not be a director.
20.4 |
Remuneration and Terms of Appointment |
All
appointments of officers are to be made on the terms and conditions and at the remuneration (whether by way of salary, fee, commission,
participation in profits or otherwise) that the directors thinks fit and are subject to termination at the pleasure of the directors,
and an officer may in addition to such remuneration be entitled to receive, after he or she ceases to hold such office or leaves the
employment of the Company, a pension or gratuity.
In
this Article 21:
(1) | “eligible
penalty” means a judgment, penalty or fine awarded or imposed in, or an amount paid
in settlement of, an eligible proceeding; |
(2) | “eligible
proceeding” means a legal proceeding or investigative action, whether current, threatened,
pending or completed, in which a director, former director or alternate director of the Company
(an “eligible party”) or any of the heirs and legal personal representatives
of the eligible party, by reason of the eligible party being or having been a director or
alternate director of the Company: |
| (a) | is
or may be joined as a party; or |
| (b) | is
or may be liable for or in respect of a judgment, penalty or fine in, or expenses related
to, the proceeding; |
(3) | “expenses”
has the meaning set out in the Business Corporations Act. |
21.2 |
Mandatory Indemnification of Eligible Parties |
Subject
to the Business Corporations Act, the Company must indemnify a director, former director or alternate director of the Company
and his or her heirs and legal personal representatives against all eligible penalties to which such person is or may be liable, and
the Company must, after the final disposition of an eligible proceeding, pay the expenses actually and reasonably incurred by such person
in respect of that proceeding. Each director and alternate director is deemed to have contracted with the Company on the terms of the
indemnity contained in this Article 21.2.
Subject
to any restrictions in the Business Corporations Act and these Articles, the Company may indemnify any person.
21.4 |
Non-Compliance with Business Corporations Act |
The
failure of a director, alternate director or officer of the Company to comply with the Business Corporations Act or these Articles
or, if applicable, any former Companies Act or former Articles, does not invalidate any indemnity to which he or she is entitled
under this Part.
21.5 Company
May Purchase Insurance
The
Company may purchase and maintain insurance for the benefit of any person (or his or her heirs or legal personal representatives) who:
(1) | is
or was a director, alternate director, officer, employee or agent of the Company; |
(2) | is
or was a director, alternate director, officer, employee or agent of a corporation at a time
when the corporation is or was an affiliate of the Company; |
(3) | at
the request of the Company, is or was a director, alternate director, officer, employee or
agent of a corporation or of a partnership, trust, joint venture or other unincorporated
entity; or |
(4) | at
the request of the Company, holds or held a position equivalent to that of a director, alternate
director or officer of a partnership, trust, joint venture or other unincorporated entity; |
against
any liability incurred by him or her as such director, alternate director, officer, employee or agent or person who holds or held such
equivalent position.
22.1 |
Payment of Dividends Subject to Special Rights |
The
provisions of this Article 22 are subject to the rights, if any, of shareholders holding shares with special rights as to dividends.
22.2 |
Declaration of Dividends |
Subject
to the Business Corporations Act, the directors may from time to time declare and authorize payment of such dividends as they
may deem advisable.
The
directors need not give notice to any shareholder of any declaration under Article 22.2.
The
directors may set a date as the record date for the purpose of determining shareholders entitled to receive payment of a dividend. The
record date must not precede the date on which the dividend is to be paid by more than two months. If no record date is set, the record
date is 5 p.m. on the date on which the directors pass the resolution declaring the dividend.
22.5 |
Manner of Paying Dividend |
A
resolution declaring a dividend may direct payment of the dividend wholly or partly in money or by the distribution of specific assets
or of fully paid shares or of bonds, debentures or other securities of the Company or any other corporation, or in any one or more of
those ways.
22.6 |
Settlement of Difficulties |
If
any difficulty arises in regard to a distribution under Article 22.5, the directors may settle the difficulty as they deem advisable,
and, in particular, may:
(1) | set
the value for distribution of specific assets; |
(2) | determine
that money in substitution for all or any part of the specific assets to which any shareholders
are entitled may be paid to any shareholders on the basis of the value so fixed in order
to adjust the rights of all parties; and |
(3) | vest
any such specific assets in trustees for the persons entitled to the dividend. |
22.7 |
When Dividend Payable |
Any
dividend may be made payable on such date as is fixed by the directors.
22.8 |
Dividends to be Paid in Accordance with Number of Shares |
All
dividends on shares of any class or series of shares must be declared and paid according to the number of such shares held.
22.9 |
Receipt by Joint Shareholders |
If
several persons are joint shareholders of any share, any one of them may give an effective receipt for any dividend, bonus or other money
payable in respect of the share.
22.10 |
Dividend Bears No Interest |
No
dividend bears interest against the Company.
22.11 |
Fractional Dividends |
If
a dividend to which a shareholder is entitled includes a fraction of the smallest monetary unit of the currency of the dividend, that
fraction may be disregarded in making payment of the dividend and that payment represents full payment of the dividend.
22.12 |
Payment of Dividends |
Any
dividend or other distribution payable in money in respect of shares may be paid by cheque, made payable to the order of the person to
whom it is sent, and mailed to the registered address of the shareholder, or in the case of joint shareholders, to the registered address
of the joint shareholder who is first named on the central securities register, or to the person and to the address the shareholder or
joint shareholders may direct in writing. The mailing of such cheque will, to the extent of the sum represented by the cheque (plus the
amount of the tax required by law to be deducted), discharge all liability for the dividend unless such cheque is not paid on presentation
or the amount of tax so deducted is not paid to the appropriate taxing authority.
22.13 |
Capitalization of Retained Earnings or Surplus |
Notwithstanding
anything contained in these Articles, the directors may from time to time capitalize any retained earnings or surplus of the Company
and may from time to time issue, as fully paid, shares or any bonds, debentures or other securities of the Company as a dividend representing
the retained earnings or surplus so capitalized or any part thereof.
23. |
Accounting
Records and Auditors |
23.1 |
Recording of Financial Affairs |
The
directors must cause adequate accounting records to be kept to record properly the financial affairs and condition of the Company and
to comply with the Business Corporations Act.
23.2 |
Inspection of Accounting Records |
Unless
the directors determine otherwise, or unless otherwise determined by ordinary resolution, no shareholder of the Company is entitled to
inspect or obtain a copy of any accounting records of the Company.
23.3 |
Remuneration of Auditors |
The
directors may set the remuneration of the auditors. If the directors so decide, the remuneration of the auditors will be determined by
the shareholders.
24.1 |
Method of Giving Notice |
Unless
the Business Corporations Act or these Articles provides otherwise, a notice, statement, report or other record (for the purposes
of this Article 24, a “record”) required or permitted by the Business Corporations Act or these Articles to be sent
by or to a person may be sent by any one of the following methods:
(1) | mail
addressed to the person at the applicable address for that person as follows: |
| (a) | for
a record mailed to a shareholder, the shareholder’s registered address; |
| (b) | for
a record mailed to a director or officer, the prescribed address for mailing shown for the
director or officer in the records kept by the Company or the mailing address provided by
the recipient for the sending of that record or records of that class; or |
| (c) | in
any other case, the mailing address of the intended recipient; |
(2) | delivery
at the applicable address for that person as follows, addressed to the person: |
| (a) | for
a record delivered to a shareholder, the shareholder’s registered address; |
| (b) | for
a record delivered to a director or officer, the prescribed address for delivery shown for
the director or officer in the records kept by the Company or the delivery address provided
by the recipient for the sending of that record or records of that class; or |
| (c) | in
any other case, the delivery address of the intended recipient; |
(3) | sending
the record by fax to the fax number provided by the intended recipient for the sending of
that record or records of that class; |
(4) | sending
the record by email to the email address provided by the intended recipient for the sending
of that record or records of that class; |
(5) | making
the record available for public electronic access in accordance with the procedures referred
to as “notice-and-access” under National Instrument 54-101 and National Instrument
51-102, as applicable, of the Canadian Securities Administrators, or in accordance with any
similar electronic delivery or access method permitted by applicable securities legislation
from time to time; or |
(6) | physical
delivery to the intended recipient. |
A
notice, statement, report or other record that is:
(1) | mailed
to a person by ordinary mail to the applicable address for that person referred to in Article
24.1 is deemed to be received by the person to whom it was mailed on the day (Saturdays,
Sundays and holidays excepted) following the date of mailing; |
(2) | faxed
to a person to the fax number provided by that person referred to in Article 24.1 is deemed
to be received by the person to whom it was faxed on the day it was faxed; |
(3) | e-mailed
to a person to the e-mail address provided by that person referred to in Article 24.1 is
deemed to be received by the person to whom it was e-mailed on the date it was e-mailed;
and |
(4) | made
available for public electronic access in accordance with the “notice-and-access”
or similar delivery procedures referred to in Article 24.1(5) is deemed to be received by
a person on the date it was made available for public electronic access. |
24.3 |
Certificate of Sending |
A
certificate signed by the secretary, if any, or other officer of the Company or of any other corporation acting in that capacity on behalf
of the Company stating that a notice, statement, report or other record was sent in accordance with Article 24.1 is conclusive evidence
of that fact.
24.4 |
Notice to Joint Shareholders |
A
notice, statement, report or other record may be provided by the Company to the joint shareholders of a share by providing such record
to the joint shareholder first named in the central securities register in respect of the share.
24.5 |
Notice to Legal Personal Representatives and Trustees |
A
notice, statement, report or other record may be provided by the Company to the persons entitled to a share in consequence of the death,
bankruptcy or incapacity of a shareholder by:
(1) | mailing
the record, addressed to them: |
| (a) | by
name, by the title of the legal personal representative of the deceased or incapacitated
shareholder, by the title of trustee of the bankrupt shareholder or by any similar description;
and |
| (b) | at
the address, if any, supplied to the Company for that purpose by the persons claiming to
be so entitled; or |
(2) | if
an address referred to in paragraph (1)(b) has not been supplied to the Company, by giving
the notice in a manner in which it might have been given if the death, bankruptcy or incapacity
had not occurred. |
If
on two consecutive occasions, a notice, statement, report or other record is sent to a shareholder pursuant to Article 24.1 and on each
of those occasions any such record is returned because the shareholder cannot be located, the Company shall not be required to send any
further records to the shareholder until the shareholder informs the Company in writing of his or her new address.
Except
as provided in Articles 25.2 and 25.3, the Company’s seal, if any, must not be impressed on any record except when that impression
is attested by the signatures of:
(2) | any
officer, together with any director; |
(3) | if
the Company only has one director, that director; or |
(4) | any
one or more directors or officers or persons as may be determined by the directors. |
For
the purpose of certifying under seal a certificate of incumbency of the directors or officers of the Company or a true copy of any resolution
or other document, despite Article 25.1, the impression of the seal may be attested by the signature of any director or officer or the
signature of any other person as may be determined by the directors.
25.3 |
Mechanical Reproduction of Seal |
The
directors may authorize the seal to be impressed by third parties on share certificates or bonds, debentures or other securities of the
Company as they may determine appropriate from time to time. To enable the seal to be impressed on any share certificates or bonds, debentures
or other securities of the Company, whether in definitive or interim form, on which facsimiles of any of the signatures of the directors
or officers of the Company are, in accordance with the Business Corporations Act or these Articles, printed or otherwise mechanically
reproduced, there may be delivered to the person employed to engrave, lithograph or print such definitive or interim share certificates
or bonds, debentures or other securities one or more unmounted dies reproducing the seal and such persons as are authorized under Article
25.1 to attest the Company’s seal may in writing authorize such person to cause the seal to be impressed on such definitive or
interim share certificates or bonds, debentures or other securities by the use of such dies. Share certificates or bonds, debentures
or other securities to which the seal has been so impressed are for all purposes deemed to be under and to bear the seal impressed on
them.
In
this Article 26:
(1) | “designated
security” means: |
| (a) | a
voting security of the Company; |
| (b) | a
security of the Company that is not a debt security and that carries a residual right to
participate in the earnings of the Company or, on the liquidation or winding up of the Company,
in its assets; or |
| (c) | a
security of the Company convertible, directly or indirectly, into a security described in
paragraph (a) or (b); |
(2) | “security”
has the meaning assigned in the Securities Act (British Columbia); |
(3) | “voting
security” means a security of the Company that: |
| (a) | is
not a debt security, and |
| (b) | carries
a voting right either under all circumstances or under some circumstances that have occurred
and are continuing. |
Article
26.3 does not apply to the Company if and for so long as it is a public company or a pre-existing reporting company which has the Statutory
Reporting Company Provisions as part of its Articles or to which the Statutory Reporting Company Provisions apply.
26.3 |
Consent Required for Transfer of Shares or Designated Securities |
No
share or designated security may be sold, transferred or otherwise disposed of without the consent of the directors and the directors
are not required to give any reason for refusing to consent to any such sale, transfer or other disposition.
Exhibit
4.2
VERSES
TECHNOLOGIES INC. (the “Company”)
AMENDMENT TO THE ARTICLES OF THE COMPANY
Pursuant to section 42(2)(a)(iv) of the British Columbia Business Corporations Act, the following is an extract of a resolution passed by all of the directors of the Company on June 11, 2021, which extract is to be attached to the Articles of the Company as effected on June 17, 2021.
“CHANGE
OF NAME
BE
IT RESOLVED THAT:
1. | the
name of the Company be changed from CHROMOS CAPITAL CORP. to VERSES TECHNOLOGIES INC.; |
| |
2. | the
Notice of Articles of the Company be altered accordingly; and |
| |
3. | any
director or officer of the Company is authorized and directed to sign all documents and to
do all things necessary or desirable to effect such alteration, including the filing of a
Notice of Alteration with the Registrar of Companies.” |
Exhibit 4.3
VERSES
TECHNOLOGIES INC.
(the
“Company”)
AMENDMENT
TO THE ARTICLES OF THE COMPANY
Pursuant
to section 42(2)(a)(iv) of the British Columbia Business Corporations Act, the following is an extract of a resolution passed
by the shareholders of the Company on July 19, 2021, which extract is to be attached to the Articles of the Company as effected on July
20, 2021.
“ALTERATION
UPON
MOTION DULY MADE, IT WAS RESOLVED AS A SPECIAL RESOLUTION THAT:
1. | the
identifying name of all Common shares without par value, of which 14,434,603 Common shares
are issued, be changed to Class A subordinate voting shares (the “Class A Shares”)
without par value and the authorized share structure of the Company be altered accordingly; |
| |
2. | the
authorized share structure of the Company be altered by creating an unlimited number of Class
B proportionate voting shares without par value (the “Class B Shares”); |
| |
3. | the
Articles of the Company be altered by adding as Article 27 and 28 the special rights and
restrictions set out in Schedule “A” hereto; |
| |
4. | the
Articles and Notice of Articles of the Company be altered accordingly, and the directors
of the Company instruct its agents to file a Notice of Alteration to a Notice of Articles
reflecting the above changes; |
| |
5. | any
director or officer of the Company, signing alone, be authorized to execute and deliver all
such documents and instruments, and to do such further acts, as may be necessary to give
full effect to these resolutions or as may be required to carry out the full intent and meaning
thereof; |
| |
6. | the
Company hereby appoints DuMoulin Black Management Ltd. to act as its agent for filing the
Notice of Alteration to a Notice of Articles as set out in paragraph 4 above.” |
SCHEDULE
“A”
ARTICLE
27 - SPECIAL RIGHTS AND RESTRICTIONS ATTACHED TO SUBORDINATE SHARES
The
holders of Class A subordinate voting shares (“Subordinate Shares”) shall be entitled to receive notice of and to
attend and vote at all meetings of shareholders of the Company except a meeting at which only the holders of another class or series
of shares is entitled to vote. Each Subordinate Share shall entitle the holder thereof to one vote at each such meeting.
27.2 |
Alteration to Rights of Subordinate Shares |
So
long as any Subordinate Shares remain outstanding, the Company will not, without the consent of the holders of Subordinate Shares expressed
by separate special resolution, alter or amend these Articles if the result of such alteration or amendment would:
(a) | prejudice
or interfere with any right or special right attached to the Subordinate Shares; or |
| |
(b) | affect
the rights or special rights of the holders of Subordinate Shares or Class B proportionate
voting shares (“Proportionate Shares”) on a per share basis as provided
for herein. |
The
holders of Subordinate Shares shall be entitled to receive such dividends payable in cash or property of the Company as may be declared
thereon by the directors from time to time. The directors may declare no dividend payable in cash or property on the Subordinate Shares
unless the directors simultaneously declare a dividend payable in cash or property on the Proportionate Shares, in an amount per Proportionate
Share equal to the amount of the dividend declared per Subordinate Share, multiplied by 6.25.
The
directors may declare a stock dividend payable in Subordinate Shares on the Subordinate Shares, but only if the directors simultaneously
declare a stock dividend payable in:
(a) | Proportionate
Shares on the Proportionate Shares, in a number of shares per Proportionate Share equal to
the amount of the dividend declared per Subordinate Share; or |
| |
(b) | Subordinate
Shares on the Proportionate Shares, in a number of shares per Proportionate Share equal to
the amount of the dividend declared per Subordinate Share, multiplied by 6.25. |
In
the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other
distribution of assets of the Company to its shareholders for the purposes of winding up its affairs, the holders of the Subordinate
Shares shall be entitled to participate pari passu with the holders of Proportionate Shares, with the amount of such distribution
per Subordinate Share equal to the amount of such distribution per Proportionate Share divided by 6.25.
27.5 |
Subdivision or Consolidation |
The
Subordinate Shares shall not be consolidated or subdivided unless the Proportionate Shares are simultaneously consolidated or subdivided
utilizing the same divisor or multiplier.
27.6 |
Conversion of the Shares Upon An Offer |
In
the event that an offer is made to purchase Proportionate Shares, and such offer is:
(a) | required,
pursuant to applicable securities legislation or the rules of any stock exchange on which:
(i) the Proportionate Shares; or (ii) the Subordinate Shares which may be obtained upon conversion
of the Proportionate Shares; may then be listed, to be made to all or substantially all of
the holders of Proportionate Shares in a province or territory of Canada to which the requirement
applies (such offer to purchase, an “Offer”); and |
| |
(b) | not
made to the holders of Subordinate Shares for consideration per Subordinate Share equal to
1/6.25 of the consideration offered per Proportionate Share; |
each
Subordinate Share shall become convertible at the option of the holder into Proportionate Shares on the basis of 6.25 Subordinate Shares
for one (1) Proportionate Share, at any time while the Offer is in effect until one day after the time prescribed by applicable securities
legislation or stock exchange rules for the offeror to take up and pay for such shares as are to be acquired pursuant to the Offer (the
“Subordinate Share Conversion Right”). For avoidance of doubt, fractions of Proportionate Shares may be issued in
respect of any amount of Subordinate Shares in respect of which the Subordinate Share Conversion Right is exercised which is less than
6.25.
The
Subordinate Share Conversion Right may only be exercised for the purpose of depositing the Proportionate Shares acquired upon conversion
under such Offer, and for no other reason. If the Subordinate Share Conversion Right is exercised, the Company shall procure that the
transfer agent for the Subordinate Shares shall deposit under such Offer the Proportionate Shares acquired upon conversion, on behalf
of the holder.
To
exercise the Subordinate Share Conversion Right, a holder of Subordinate Shares or his or her attorney, duly authorized in writing, shall:
| (i) | give
written notice of exercise of the Subordinate Share Conversion Right to the transfer agent
for the Subordinate Shares, and of the number of Subordinate Shares in respect of which the
Subordinate Share Conversion Right is being exercised; |
| | |
| (ii) | deliver
to the transfer agent for the Subordinate Shares any share certificate or certificates representing
the Subordinate Shares in respect of which the Subordinate Share Conversion Right is being
exercised; and |
| | |
| (iii) | pay
any applicable stamp tax or similar duty on or in respect of such conversion. |
No
certificates representing Proportionate Shares acquired upon exercise of the Subordinate Share Conversion Right will be delivered to
the holders of Subordinate Shares. If Proportionate Shares issued upon such conversion and deposited under such Offer are withdrawn by
such holder, or such Offer is abandoned, withdrawn or terminated by the offeror, or such Offer expires without the offeror taking up
and paying for such Proportionate Shares, such Proportionate Shares and any fractions thereof issued shall automatically, without further
action on the part of the holder thereof, be reconverted into Subordinate Shares on the basis of one (1) Proportionate Share for 6.25
Subordinate Shares, and the Company will procure that the transfer agent for the Subordinate Shares shall send to such holder a direct
registration statement, certificate or certificates representing the Subordinate Shares acquired upon such reconversion. If the offeror
under such Offer takes up and pays for the Proportionate Shares acquired upon exercise of the Subordinate Share Conversion Right, the
Company shall procure that the transfer agent for the Subordinate Shares shall deliver to the holders of such Proportionate Shares the
consideration paid for such Proportionate Shares by such Offeror.
ARTICLE
28 - SPECIAL RIGHTS AND RESTRICTIONS ATTACHED TO PROPORTIONATE SHARES
The
holders of Proportionate Shares shall be entitled to receive notice of and to attend and vote at all meetings of shareholders of the
Company except a meeting at which only the holders of another class or series of shares is entitled to vote. Subject to Articles 28.2
and 28.3, each Proportionate Share shall entitle the holder to 6.25 votes and each fraction of a Proportionate Share shall entitle the
holder to the number of votes calculated by multiplying the fraction by 6.25 and rounding the product down to the nearest whole number,
at each such meeting.
28.2 |
Alteration to Rights of Proportionate Shares |
So
long as any Proportionate Shares remain outstanding, the Company will not, without the consent of the holders of Proportionate Shares
expressed by separate special resolution alter or amend these Articles if the result of such alteration or amendment would:
(a) | prejudice
or interfere with any right or special right attached to the Proportionate Shares; or |
| |
(b) | affect
the rights or special rights of the holders of Subordinate Shares or Proportionate Shares
on a per share basis as provided for herein. |
At
any meeting of holders of Proportionate Shares called to consider such a separate special resolution, each Proportionate Share shall
entitle the holder to one (1) vote and each fraction of a Proportionate Share will entitle the holder to the corresponding fraction of
one (1) vote.
28.3 |
Shares Superior to Proportionate Shares |
(a) | The
Company may take no action which would authorize or create shares of any class or series
having preferences superior to or on a parity with the Proportionate Shares without the consent
of the holders of a majority of the Proportionate Shares expressed by separate ordinary resolution. |
| |
(b) | At
any meeting of holders of Proportionate Shares called to consider such a separate ordinary
resolution, each Proportionate Share will entitle the holder to one (1) vote and each fraction
of a Proportionate Share shall entitle the holder to the corresponding fraction of one (1)
vote. |
(a) | The
holders of Proportionate Shares shall be entitled to receive such dividends payable in cash
or property of the Company as may be declared by the directors from time to time. The directors
may declare no dividend payable in cash or property on the Proportionate Shares unless the
directors simultaneously declare a dividend payable in cash or property on the Subordinate
Shares, in an amount equal to the amount of the dividend declared per Proportionate Share
divided by 6.25. |
| |
(b) | The
directors may declare a stock dividend payable in Proportionate Shares on the Proportionate
Shares, but only if the directors simultaneously declare a stock dividend payable in: (i)
Proportionate Shares on the Subordinate Shares, in a number of shares per Subordinate Share
equal to the amount of the dividend declared per Proportionate Share divided by 6.25. |
| |
(c) | The
directors may declare a stock dividend payable in Subordinate Shares on the Proportionate
Shares, but only if the directors simultaneously declare a stock dividend payable in: (i)
Subordinate Shares on the Subordinate Shares, in a number of shares per Subordinate Share
equal to the amount of the dividend declared per Proportionate Share divided by 6.25. |
| |
(d) | Holders
of fractional Proportionate Shares shall be entitled to receive any dividend declared on
the Proportionate Shares, in an amount equal to the dividend per Proportionate Share multiplied
by the fraction thereof held by such holder. |
In
the event of the liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or in the event of any other
distribution of assets of the Company to its shareholders for the purpose of winding up its affairs, the holders of the Proportionate
Shares shall be entitled to participate pari passu with the holders of Subordinate Shares, with the amount of such distribution
per Proportionate Shares equal to each of: (i) the amount of such distribution per Subordinate Share multiplied by 6.25.
28.6 |
Subdivision or Consolidation |
The
Proportionate Shares shall not be consolidated or subdivided unless the Subordinate Shares are simultaneously consolidated or subdivided
utilizing the same divisor or multiplier.
28.7 |
Voluntary Conversion |
Subject
to the Conversion Limitation set forth in this Article 28.7, holders of Proportionate Shares shall have the following rights of conversion
(the “Share Conversion Right”):
(a) | Right
to Convert Proportionate Shares. Each Proportionate Share shall be convertible at the
option of the holder into such number of Subordinate Shares as is determined by multiplying
the number of Proportionate Shares in respect of which the Share Conversion Right is exercised
by 6.25. Fractions of Proportionate Shares may be converted into such number of Subordinate
Shares as is determined by multiplying the fraction by 6.25. |
(b) | Conversion
Limitation. Unless already appointed, upon receipt of a Conversion Notice (as defined
below), the directors (or a committee thereof) shall designate an officer of the Company
who shall determine whether the Conversion Limitation set forth in this Article shall apply
to the conversion referred to therein (the “Conversion Limitation Officer”). |
| |
(c) | Foreign
Private Issuer Status. The Company shall use commercially reasonable efforts to maintain
its status as a “foreign private issuer” (as determined in accordance with Rule
3b-4 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Accordingly, the Company shall not give effect to any voluntary conversion of Proportionate
Shares pursuant to this Article 28.7 or otherwise, and the Share Conversion Right will not
apply, to the extent that after giving effect to all permitted issuances after such conversion
of Proportionate Shares, the aggregate number of Subordinate Shares and Proportionate Shares
(calculated on the basis that each Subordinate Share and Proportionate Share is counted once,
without regard to the number of votes carried by such share) held of record, directly or
indirectly, by residents of the United States (as determined in accordance with Rules 3b-4
and 12g3-2(a) under the Exchange Act (“U.S. Residents”) would exceed forty
percent (40%) (the “40% Threshold”) of the aggregate number of Subordinate
Shares and Proportionate Shares (calculated on the same basis) issued and outstanding (the
“FPI Restriction”). The directors may by resolution waive this restriction
for any individual transaction or increase the 40% Threshold to a number not to exceed fifty
percent (50%), and if any such resolution is adopted, all references to the 40% Threshold
herein shall refer instead to the amended percentage threshold set by the directors in such
resolution. |
| |
(d) | Conversion
Limitation. In order to give effect to the FPI Restriction, the number of Subordinate
Shares issuable to a holder of Proportionate Shares upon exercise by such holder of the Share
Conversion Right will be subject to the 40% Threshold based on the number of Proportionate
Shares held by such holder as of the date of issuance of Proportionate Shares to such holder,
and thereafter at the end of each of the Company’s subsequent fiscal quarters (each,
a “Determination Date”), calculated as follows: |
X
= [A x 40% - B] x (C/D)
Where,
on the Determination Date:
X
= Maximum Number of Subordinate Shares which may be issued upon exercise of the Share Conversion Right.
A
= Aggregate number of Subordinate Shares and Proportionate Shares issued and outstanding.
B
= Aggregate number of Subordinate Shares and Proportionate Shares held of record, directly or indirectly, by U.S. Residents.
C
= Aggregate Number of Proportionate Shares held by such holder.
D
= Aggregate Number of All Proportionate Shares.
The
Conversion Limitation Officer shall determine as of each Determination Date, in his or her sole discretion acting reasonably, the aggregate
number of Subordinate Shares and Proportionate Shares held of record, directly or indirectly, by U.S. Residents, the maximum number of
Subordinate Shares which may be issued upon exercise of the Share Conversion Right, generally in accordance with the formula set forth
immediately above. Upon request by a holder of Proportionate Shares, the Company will provide each holder of Proportionate Shares with
notice of such maximum number as at the most recent Determination Date, or a more recent date as may be determined by the Conversion
Limitation Officer in its discretion. To the extent that issuances of Subordinate Shares on exercise of the Share Conversion Right would
result in the 40% Threshold being exceeded, the number of Subordinate Shares to be issued will be pro-rated among each holder of Proportionate
Shares exercising the Share Conversion Right.
Notwithstanding
the provisions of Articles 28.7(d) and e), the directors may by resolution waive the application of the Conversion Restriction to any
exercise or exercises of the Share Conversion Right to which the Conversion Restriction would otherwise apply, or to future Conversion
Restrictions generally, including with respect to a period of time.
| (i) | Any
holder of Proportionate Shares who beneficially owns more than 5% of the issued and outstanding
Proportionate Shares may submit a written dispute as to the calculation of the 40% Threshold
or the FPI Restriction by the Conversion Limitation Officer to the directors with the basis
for the disputed calculations. The Company shall respond to the holder within 5 (five) business
days of receipt of the notice of such dispute with a written calculation of the 40% Threshold
or the FPI Restriction, as applicable. If the holder and the Company are unable to agree
upon such calculation of the 40% Threshold or the FPI Restriction, as applicable, within
5 (five) business days of such response, then the Company and the holder shall, within 1
(one) business day thereafter submit the disputed calculation of the 40% Threshold or the
FPI Restriction to the Company’s independent auditor. The Company, at the Company’s
expense, shall cause the auditor to perform the calculations in dispute and notify the Company
and the holder of the results no later than 5 (five) business days from the time it receives
the disputed calculations. The auditor’s calculations shall be final and binding on
all parties, absent demonstrable error. |
| | |
| (ii) | In
the event of a dispute as to the number of Subordinate Shares issuable to a holder of Proportionate
Shares in connection with a voluntary conversion of Proportionate Shares, the Company shall
issue to the holder of Proportionate Shares the number of Subordinate Shares not in dispute,
and resolve such dispute in accordance with Article 28.7(f)(i). |
(f) | Mechanics
of Conversion. Before any holder of Proportionate Shares shall be entitled to voluntarily
convert Proportionate Shares into Subordinate Shares in accordance with Articles 28.7(a)
or (b), the holder shall surrender the certificate or certificates representing the Proportionate
Shares to be converted at the head office of the Company, or the office of any transfer agent
for the Proportionate Shares, and shall give written notice to the Company at its head office
of his or her election to convert such Proportionate Shares and shall state therein the name
or names in which the certificate or certificates representing the Subordinate Shares are
to be issued (a “Conversion Notice”). The Company shall (or shall cause
its transfer agent to) as soon as practicable thereafter, issue to such holder or his or
her nominee, a certificate or certificates or direct registration statement representing
the number of Subordinate Shares to which such holder is entitled upon conversion. Such conversion
shall be deemed to have taken place immediately prior to the close of business on the day
on which the certificate or certificates representing the Proportionate Shares to be converted
is surrendered and the Conversion Notice is delivered, and the person or persons entitled
to receive the Subordinate Shares issuable upon such conversion shall be treated for all
purposes as the holder or holders of record of such Subordinate Shares as of such date. |
Exhibit
4.4
Verses
AI Inc.
(the
“Company”)
amendment
to the Articles of the Company
Pursuant
to section 42(2)(a)(iv) of the British Columbia Business Corporations Act, the following is an extract of a resolution passed
by all the directors of the Company on February 23, 2023, which extract is to be attached to the Articles of the Company as effected
on March 31, 2023.
“Approval
of Name Change
1. | Subject
to approval from the British Columbia Registrar of Companies (the “BC Registrar”)
and the NEO, the name of the Company be changed to “Verses AI Inc.” effective
at a date to be determined by any one director or officer of the Company. |
| |
2. | The
Company’s Notice of Articles be altered by changing the name of the Company to reflect
the new name of the Company. |
| |
3. | Any
one director or officer of the Company is authorized to execute and deliver the required
Notice of Alteration on behalf of the Company. |
| |
4. | Subject
to the deposit of this resolution at the Company’s records office, the solicitors for
the Company are authorized and directed to prepare and electronically file the Notice of
Alteration with the BC Registrar. |
| |
5. | Upon
the Notice of Alteration taking effect, the Company’s Articles be altered to reflect
the change of name.” |
Exhibit 4.5
Exhibit
4.6
Verses
Technologies Inc.
OMNIBUS
EQUITY INCENTIVE PLAN
June
9, 2022
TABLE
OF CONTENTS
ARTICLE
1 PURPOSE |
1 |
1.1 |
Purpose |
1 |
|
|
|
ARTICLE
2 INTERPRETATION |
1 |
2.1 |
Definitions |
1 |
2.2 |
Interpretation |
11 |
|
|
|
ARTICLE
3 ADMINISTRATION |
12 |
3.1 |
Administration |
12 |
3.2 |
Delegation
to Committee |
13 |
3.3 |
Determinations
Binding |
13 |
3.4 |
Eligibility |
13 |
3.5 |
Plan
Administrator Requirements |
14 |
3.6 |
Market
Value Allocation and Subsidiary Plan Requirements |
14 |
3.7 |
Total
Shares Subject to Awards |
15 |
3.8 |
Limits
on Grants of Awards |
15 |
3.9 |
Award
Agreements |
15 |
3.10 |
Non-transferability
of Awards |
16 |
|
|
|
ARTICLE
4 OPTIONS |
16 |
4.1 |
Granting
of Options |
16 |
4.2 |
Exercise
Price |
16 |
4.3 |
Term
of Options |
16 |
4.4 |
Vesting
and Exercisability |
16 |
4.5 |
Payment
of Exercise Price |
17 |
|
|
|
ARTICLE
5 RESTRICTED SHARE UNITS |
18 |
5.1 |
Granting
of RSUs |
18 |
5.2 |
RSU
Account |
18 |
5.3 |
Vesting
of RSUs |
18 |
5.4 |
Settlement
of RSUs |
18 |
|
|
|
ARTICLE
6 PERFORMANCE SHARE UNITS |
19 |
6.1 |
Granting
of PSUs |
19 |
6.2 |
Terms
of PSUs |
19 |
6.3 |
Performance
Goals |
19 |
6.4 |
PSU
Account |
20 |
6.5 |
Vesting
of PSUs |
20 |
6.6 |
Settlement
of PSUs |
20 |
|
|
|
ARTICLE
7 DEFERRED SHARE UNITS |
21 |
7.1 |
Granting
of DSUs |
21 |
7.2 |
DSU
Account |
22 |
7.3 |
Vesting
of DSUs |
22 |
7.4 |
Settlement
of DSUs |
22 |
7.5 |
No
Additional Amount or Benefit |
23 |
ARTICLE
8 ADDITIONAL AWARD TERMS |
23 |
8.1 |
Dividend
Equivalents |
23 |
8.2 |
Restricted
Period |
23 |
8.3 |
Withholding
Taxes |
24 |
8.4 |
Recoupment |
24 |
|
|
|
ARTICLE
9 TERMINATION OF EMPLOYMENT OR SERVICES |
24 |
9.1 |
Termination
of Employee, Consultant or Director |
24 |
9.2 |
Termination
of Employee, Consultant or Director – Treatment of Options |
25 |
9.3 |
Termination
of Employee, Consultant or Director – Treatment of RSUs, PSUs and DSUs |
26 |
9.4 |
Discretion
to Permit Acceleration |
26 |
|
|
|
ARTICLE
10 EVENTS AFFECTING THE CORPORATION |
27 |
10.1 |
General |
27 |
10.2 |
Change
in Control |
27 |
10.3 |
Reorganization
of Corporation’s Capital |
28 |
10.4 |
Other
Events Affecting the Corporation |
29 |
10.5 |
Immediate
Acceleration of Awards |
29 |
10.6 |
Issue
by Corporation of Additional Shares |
29 |
10.7 |
Fractions |
29 |
|
|
|
ARTICLE
11 U.S. TAXPAYERS |
29 |
11.1 |
Provisions
for U.S. Taxpayers |
29 |
11.2 |
ISOs |
30 |
11.3 |
ISO
Grants to 10% Shareholders |
30 |
11.4 |
$100,000
Per Year Limitation for ISOs |
30 |
11.5 |
Disqualifying
Dispositions |
30 |
11.6 |
Section
409A of the Code |
31 |
11.7 |
Application
of Article 11 to U.S. Taxpayers |
31 |
|
|
|
ARTICLE
12 AMENDMENT, SUSPENSION OR TERMINATION OF THE PLAN |
32 |
12.1 |
Amendment,
Suspension, or Termination of the Plan |
32 |
12.2 |
Permitted
Amendments |
32 |
12.3 |
Amendments
Requiring Shareholder Approval |
32 |
|
|
|
ARTICLE
13 MISCELLANEOUS |
33 |
13.1 |
Legal
Requirement |
33 |
13.2 |
No
Other Benefit |
33 |
13.3 |
Rights
of Participant |
33 |
13.4 |
Corporate
Action |
33 |
13.5 |
Priority
of Agreements |
33 |
13.6 |
Anti-Hedging
Policy |
34 |
13.7 |
Participant
Information |
34 |
13.8 |
Participation
in the Plan |
34 |
13.9 |
International
Participants |
34 |
13.10 |
Successors
and Assigns |
34 |
13.11 |
General
Restrictions or Assignment |
34 |
13.12 |
Severability |
35 |
13.13 |
Notices |
35 |
13.14 |
Effective
Date |
35 |
13.15 |
Governing
Law |
35 |
13.16 |
Submission
to Jurisdiction |
35 |
|
|
|
CALIFORNIA
SUPPLEMENT |
1 |
Verses
Technologies Inc.
Omnibus
Equity Incentive Plan
Article
1
PURPOSE
The
purpose of this Plan is to provide the Corporation with a share-related mechanism to attract, retain and motivate qualified Directors,
Employees and Consultants of the Corporation and its subsidiaries, to reward such of those Directors, Employees and Consultants as may
be granted Awards under this Plan by the Board from time to time for their contributions toward the long-term goals and success of the
Corporation and to enable and encourage such Directors, Employees and Consultants to acquire Shares as long-term investments and proprietary
interests in the Corporation.
Article
2
INTERPRETATION
When
used herein, unless the context otherwise requires, the following terms have the indicated meanings, respectively:
| (a) | “Affiliate”
means any entity that is an “affiliate” for the purposes of National Instrument
45-106 – Prospectus Exemptions of the Canadian Securities Administrators, as
amended from time to time; |
| (b) | “Award”
means any Option, Restricted Share Unit, Performance Share Unit or Deferred Share Unit granted
under this Plan which may be denominated or settled in Shares, cash, a combination thereof
or in such other form as provided herein in the discretion of the Plan Administrator; |
| (c) | “Award
Agreement” means a signed, written agreement between a Participant and the Corporation,
in the form or any one of the forms approved by the Plan Administrator, evidencing the terms
and conditions on which an Award has been granted under this Plan and which need not be identical
to any other such agreements; |
| (d) | “Board”
means the board of directors of the Corporation as it may be constituted from time to time; |
| (e) | “Business
Day” means a day, other than a Saturday or Sunday, on which the principal commercial
banks in the City of Vancouver are open for commercial business during normal banking hours; |
| (f) | “Canadian
Taxpayer” means a Participant that is resident of Canada for purposes of the Tax
Act; |
| (g) | “Cash
Fees” has the meaning set forth in Subsection 7.1(a); |
| (h) | “Cashless
Exercise” has the meaning set forth in Subsection 4.5(b); |
| (i) | “Cause”
means, with respect to a particular Participant: |
| (i) | “cause”
(or any similar term) as such term is defined in the applicable Service Agreement; |
| (ii) | in
the event there is no Service Agreement or “cause” (or any similar term) is not
defined in such agreement, “cause” (or any similar term) as such term is defined
in the Award Agreement; or |
| (iii) | in
the event neither (i) nor (ii) apply, such Participant’s: (A) failure to comply with,
in any material respect, any of the policies of the Corporation, any subsidiary of the Corporation,
or any Affiliate of the Corporation or any subsidiary of the Corporation (each, a “VERSES
Entity”) provided to such Participant, in each case, which failure is not cured
(to the extent reasonably susceptible to cure) within thirty (30) days after receiving notice
from the Board or the board of directors of the applicable VERSES Entity (the “Applicable
Board”) of such failure; (B) continuous refusal, following written notice from
the applicable VERSES Entity, to carry out or comply with any lawful and reasonable directives
of the Applicable Board or the Participant’s direct or indirect supervisor; (C) breach
of any non-solicitation or non-competition covenants to which such Participant is subject
or material breach of any other restrictive covenants to which such Participant is subject,
in each case, with respect to any VERSES Entity; (D) material breach of the terms of any
written employment agreement, Award Agreement or other written contract of engagement between
the Participant and the applicable VERSES Entity, which breach is not cured (to the extent
reasonably susceptible to cure) within thirty (30) days after receiving notice from the Applicable
Board of such failure; (E) indictment for (or being charged with), plea of no contest to,
plea of nolo contendere to, or imposition of unadjudicated probation for any felony or crime
(other than a motor vehicle violation not involving serious bodily harm) involving moral
turpitude; (F) unlawful use (including being under the influence) or possession of illegal
drugs on the premises of any VERSES Entity or while performing his or her duties and responsibilities
to any VERSES Entity; (G) commission of an act of fraud, theft, embezzlement, gross negligence,
or willful misconduct against any VERSES Entity (including any entity with whom it may directly
or indirectly be a party to a management services agreement or similar agreement); (H) breach
of any fiduciary duty to any VERSES Entity that causes material harm (whether reputational,
economic or otherwise) to the Corporation; or (I) such Participant’s other misconduct
which causes material harm to any VERSES Entity. Notwithstanding the foregoing, if following
a Participant’s termination of employment, it is discovered within the sixty (60) day
period immediately following the date of such termination that the Participant could have
been terminated for Cause by the VERSES Entity under any of the “Cause” prongs
described above (which event was a result of Participant’s intentional and willful
action that caused or is reasonably likely to cause material damage to the Corporation or
any VERSES Entity) as determined reasonably by the Board in good faith, Participant’s
employment shall, at the election of the Board, be deemed to have been terminated for Cause; |
| (j) | “Change
in Control” means the occurrence of any one or more of the following events: |
| (i) | any
transaction at any time and by whatever means pursuant to which any Person or any group of
two (2) or more Persons acting jointly or in concert hereafter acquires the direct or indirect
“beneficial ownership” (as defined in the Securities Act (British Columbia))
of, or acquires the right to exercise Control or direction over, securities of the Corporation
representing more than 50% of the then issued and outstanding voting securities of the Corporation,
including, without limitation, as a result of a take-over bid, an exchange of securities,
an amalgamation of the Corporation with any other entity, an arrangement, a capital reorganization
or any other business combination or reorganization; |
| (ii) | the
sale, assignment or other transfer of all or substantially all of the consolidated assets
of the Corporation to a Person other than a subsidiary of the Corporation; |
| (iii) | the
dissolution or liquidation of the Corporation, other than in connection with the distribution
of assets of the Corporation to one (1) or more Persons which were Affiliates of the Corporation
prior to such event; |
| (iv) | the
occurrence of a transaction requiring approval of the Corporation’s shareholders whereby
the Corporation is acquired through consolidation, merger, exchange of securities, purchase
of assets, amalgamation, statutory arrangement or otherwise by any other Person (other than
a short form amalgamation or exchange of securities with a subsidiary of the Corporation); |
| (v) | individuals
who comprise the Board as of the date hereof (the “Incumbent Board”) for
any reason during any twelve month period cease to constitute at least a majority of the
members of the Board, unless the election, or nomination for election by the Corporation’s
shareholders, of any new director was approved by a vote of at least a majority of the Incumbent
Board, and in that case such new director shall be considered as a member of the Incumbent
Board; or |
| (vi) | any
other event which the Board determines to constitute a change in control of the Corporation, |
provided
that, notwithstanding clause (i), (ii), (iii) and (iv) above, a Change in Control shall be deemed not to have occurred
if immediately following the transaction set forth in clause (i), (ii), (iii) or (iv) above:
| (A) | the
holders of securities of the Corporation that immediately prior to the consummation of such
transaction represented more than 50% of the combined voting power of the then outstanding
securities eligible to vote for the election of directors of the Corporation hold (x) securities
of the entity resulting from such transaction (including, for greater certainty, the Person
succeeding to assets of the Corporation in a transaction contemplated in clause (ii) above)
(the “Surviving Entity”) that represent more than 50% of the combined
voting power of the then outstanding securities eligible to vote for the election of directors
or trustees (“voting power”) of the Surviving Entity, or (y) if applicable,
securities of the entity that directly or indirectly has beneficial ownership of 100% of
the securities eligible to elect directors or trustees of the Surviving Entity (the “Parent
Entity”) that represent more than 50% of the combined voting power of the then
outstanding securities eligible to vote for the election of directors or trustees of the
Parent Entity; and |
| (B) | no
Person or group of two or more Persons, acting jointly or in concert, is the beneficial owner,
directly or indirectly, of more than 50% of the voting power of the Parent Entity (or, if
there is no Parent Entity, the Surviving Entity), |
(any
such transaction which satisfies all of the criteria specified in clauses (A) and (B) above being referred to as a “Non-Qualifying
Transaction” and, following the Non-Qualifying Transaction, references in this definition of “Change in Control”
to the “Corporation” shall mean and refer to the Parent Entity (or, if there is no Parent Entity, the Surviving Entity) and,
if such entity is a company or a trust, references to the “Board” shall mean and refer to the board of directors or trustees,
as applicable, of such entity).
Notwithstanding
the foregoing, for purposes of any Award that constitutes “deferred compensation” (within the meaning of Section 409A of
the Code), the payment of which is triggered by or would be accelerated upon a Change in Control, a transaction will not be deemed a
Change in Control for Awards granted to any Participant who is a U.S. Taxpayer unless the transaction qualifies as “a change in
control event” within the meaning of Section 409A of the Code.
| (k) | “Code”
means the United States Internal Revenue Code of 1986, as amended from time to time. Any
reference to a section of the Code shall be deemed to include a reference to any regulations
promulgated thereunder; |
| (l) | “Committee”
has the meaning set forth in Section 3.2; |
| (m) | “Consultant”
means any individual or entity engaged by the Corporation or any subsidiary of the Corporation
to render consulting or advisory services (including as a director or officer of any subsidiary
of the Corporation), other than as an Employee or Director, and whether or not compensated
for such services provided, however, that any Consultant who is in the United States or is
a U.S. Person at the time such Consultant receives any offer of Award or executes any Award
Agreement must be a natural person, and must agree to provide bona fide services to the Corporation
or subsidiary of the Corporation, as applicable, that are not in connection with the offer
or sale of securities in a capital-raising transaction, and do not directly or indirectly
promote or maintain a market for the Corporation’s securities; |
| (n) | “Control”
means the relationship whereby a Person is considered to be “controlled” by a
Person if: |
| (i) | when
applied to the relationship between a Person and a corporation, the beneficial ownership
by that Person, directly or indirectly, of voting securities or other interests in such corporation
entitling the holder to exercise control and direction in fact over the activities of such
corporation; |
| (ii) | when
applied to the relationship between a Person and a partnership, limited partnership, trust
or joint venture, means the contractual right to direct the affairs of the partnership, limited
partnership, trust or joint venture; and |
| (iii) | when
applied in relation to a trust, the beneficial ownership at the relevant time of more than
50% of the property settled under the trust, and |
the
words “Controlled by”, “Controlling” and similar words have corresponding meanings; provided that
a Person who controls a corporation, partnership, limited partnership or joint venture will be deemed to Control a corporation, partnership,
limited partnership, trust or joint venture which is Controlled by such Person and so on;
| (o) | “Corporation”
means Verses Technologies Inc., or any successor entity thereof; |
| (p) | “Date
of Grant” means, for any Award, the date specified by the Plan Administrator at
the time it grants the Award or if no such date is specified, the date upon which the Award
was granted; |
| (q) | “Deferred
Share Unit” or “DSU” means a unit equivalent in value to a Share,
credited by means of a bookkeeping entry in the books of the Corporation in accordance with
Article 7; |
| (r) | “Director”
means a director of the Corporation who is not an Employee; |
| (s) | “Director
Fees” means the total compensation (including annual retainer and meeting fees,
if any) paid by the Corporation to a Director in a calendar year for service on the Board; |
| (t) | “Disabled”
or “Disability” means, with respect to a particular Participant: |
| (i) | “disabled”
or “disability” (or any similar terms) as such terms are defined in the employment
or other written agreement between the Corporation or a subsidiary of the Corporation and
the Participant; |
| (ii) | in
the event there is no written or other applicable employment or other agreement between the
Corporation or a subsidiary of the Corporation, or “disabled” or “disability”
(or any similar terms) are not defined in such agreement, “disabled” or “disability”
as such term are defined in the Award Agreement; or |
| (iii) | in
the event neither (i) or (ii) apply, then the incapacity or inability of the Participant,
by reason of mental or physical incapacity, disability, illness or disease (as determined
by a legally qualified medical practitioner or by a court) that prevents the Participant
from carrying out his or her normal and essential duties as an Employee, Director or Consultant
for a continuous period of six months or for any cumulative period of 180 days in any consecutive
twelve month period, the foregoing subject to and as determined in accordance with procedures
established by the Plan Administrator for purposes of this Plan; |
| (u) | “Effective
Date” means the effective date of this Plan, being June 9, 2022; |
| (v) | “Eligible
Person” means a Director, Employee or Consultant of the Corporation or a subsidiary
of the Corporation; |
| (w) | “Elected
Amount” has the meaning set forth in Subsection 7.1(a); |
| (x) | “Electing
Person” means a Participant who is, on the applicable Election Date, a Director; |
| (y) | “Election
Date” means the date on which the Electing Person files an Election Notice in accordance
with Subsection 7.1(b); |
| (z) | “Election
Notice” has the meaning set forth in Subsection 7.1(b); |
| (aa) | “Employee”
means an individual who: |
| (i) | is
considered, for purposes of source deductions under applicable tax or social welfare legislation,
to be: (A) an employee of the Corporation or a subsidiary of the Corporation; or (B) an employee
of a Service Provider of the Corporation of a subsidiary of the Corporation, provided such
employee provides services directly to the Corporation or subsidiary of the Corporation,
as applicable; or |
| (ii) | works
full-time or part-time on a regular weekly basis for the Corporation or a subsidiary of the
Corporation providing services normally provided by an employee and who is subject to the
same control and direction by the Corporation or a subsidiary of the Corporation over the
details and methods of work as an employee of the Corporation or such subsidiary; or |
| (iii) | works
full-time or part-time on a regular weekly basis for a Service Provider of the Corporation
or a subsidiary of the Corporation providing services directly to the Corporation or subsidiary
of the Corporation, as applicable, that would normally be provided by an employee of the
Corporation or subsidiary of the Corporation, as applicable, and who is subject to the same
control and direction by the Service Provider over the details and methods of work as an
employee of the Service Provider; |
| (bb) | “Exchange”
means the primary exchange on which the Shares are then listed and posted for trading from
time to time, as determined by the Plan Administrator; |
| (cc) | “Exercise
Notice” means a notice in writing, signed by a Participant and stating the Participant’s
intention to exercise a particular Option; |
| (dd) | “Exercise
Price” means the price at which an Option Share may be purchased pursuant to the
exercise of an Option; |
| (ee) | “Expiry
Date” means the expiry date specified in the Award Agreement (which shall not be
later than the tenth anniversary of the Date of Grant) or, if not so specified, means the
tenth anniversary of the Date of Grant; |
| (ff) | “In
the Money Amount” has the meaning given to it in Subsection 4.5(b); |
| (gg) | “Insider”
means an “insider” as defined in the rules of the Exchange from time to time; |
| (hh) | “Market
Price” means, on any particular date: (a) the closing price of the Shares on the
Exchange on the last Trading Day prior to such particular date; or (b) if the Shares are
not then listed on an Exchange, the value as is determined solely by the Board, acting reasonably
and in good faith, and, with respect to an Award made to a U.S. Taxpayer, in accordance with
Section 409A of the Code and such determination shall be conclusive and binding on all Persons; |
| (ii) | “Market
Value” means, on any particular date, the product obtained by multiplying the Market
Price by the total issued and outstanding Shares, expressed in dollars; |
| (jj) | “MVA
Amount” means, with respect to a subsidiary of the Corporation on any particular
date, the product obtained by multiplying such subsidiary’s MVA Ratio by the Market
Value on such particular date; |
| (kk) | “MVA
Ratio” means the ratio for allocating Market Value to each subsidiary of the Corporation,
calculated in accordance with Section 3.6(a); |
| (ll) | “Option”
means a stock option granted hereunder to purchase Shares from treasury pursuant to the terms
and conditions hereof and as evidenced by an Award Agreement; |
| (mm) | “Option
Shares” means Shares issuable by the Corporation upon the exercise of outstanding
Options; |
| (nn) | “Participant”
means a person to whom an Award has been granted under this Plan or a Subsidiary Plan, as
applicable; |
| (oo) | “Performance
Goals” means performance goals expressed in terms of attaining a specified level
of the particular criteria or the attainment of a percentage increase or decrease in the
particular criteria, and may be applied to one or more of the Corporation, a subsidiary of
the Corporation, a division of the Corporation or of a subsidiary of the Corporation, or
an individual, or may be applied to the performance of the Corporation or a subsidiary of
the Corporation relative to a market index, a group of other companies or a combination thereof,
or on any other basis, all as determined by the Plan Administrator in its discretion; |
| (pp) | “Performance
Share Unit” or “PSU” means a unit equivalent in value to a Share,
credited by means of a bookkeeping entry in the books of the Corporation in accordance with
Article 6; |
| (qq) | “Person”
means an individual, sole proprietorship, partnership, unincorporated association, unincorporated
syndicate, unincorporated organization, trust, body corporate, and a natural person in his
or her capacity as trustee, executor, administrator or other legal representative; |
| (rr) | “Plan”
means this Omnibus Equity Incentive Plan, as may be amended from time to time, pursuant to
which all new equity-based incentive awards granted by the Corporation are governed; |
| (ss) | “Plan
Administrator” means the Board, or if the administration of this Plan has been
delegated by the Board to the Committee pursuant to Section 3.2, the Committee; |
| (tt) | “PSU
Service Year” has the meaning given to it in Section 6.1; |
| (uu) | “Restricted
Share Unit” or “RSU” means a unit equivalent in value to a Share,
credited by means of a bookkeeping entry in the books of the Corporation in accordance with
Article 5; |
| (vv) | “RSU
Service Year” has the meaning given to it in Section 5.1. |
| (ww) | “Section
409A of the Code” or “Section 409A” means Section 409A of the
Code and all regulations, guidance, compliance programs, and other interpretive authority
issued thereunder; |
| (xx) | “Securities
Laws” means securities legislation, securities regulation and securities rules,
as amended, and the policies, notices, instruments and blanket orders in force from time
to time that govern or are applicable to the Corporation or to which it is subject; |
| (yy) | “Security
Based Compensation Arrangement” means a stock option, stock option plan, employee
stock purchase plan or any other compensation or incentive mechanism involving the issuance
or potential issuance of Shares to Directors, officers, Employees and/or service providers
of the Corporation or any subsidiary of the Corporation, including a share purchase from
treasury which is financially assisted by the Corporation or a subsidiary of the Corporation
by way of a loan, guarantee or otherwise; |
| (zz) | “Service
Agreement” means any written agreement between a Participant and the Corporation
or any subsidiary or Service Provider of the Corporation (as applicable), in connection with
that Participant’s employment, service or engagement as a Director, officer, Employee
or Consultant or the termination of such employment, service or engagement, as amended, replaced
or restated from time to time; |
| (aaa) | “Service
Provider” means any individual or entity engaged by the Corporation or any subsidiary
of the Corporation to render services, other than as a Consultant; |
| (bbb) | “Service
Provider Employee” has the meaning given to it in Section 2.1(jjj)(ii); |
| (ccc) | “Share”
means one (1) Class A Subordinate Voting share in the capital of the Corporation as constituted
on the Effective Date or any share or shares issued in replacement of such Class A Subordinate
Voting share in compliance with Canadian law or other applicable law, and/or one share of
any additional class of shares in the capital of the Corporation as may exist from time to
time, or after an adjustment contemplated by Article 10, such other shares or securities
to which the holder of an Award may be entitled as a result of such adjustment; |
| (ddd) | “subsidiary”
means an issuer that is Controlled directly or indirectly by another issuer and includes
a subsidiary of that subsidiary, or any other entity in which the Corporation has an equity
interest and is designated by the Plan Administrator, from time to time, for purposes of
this Plan to be a subsidiary; |
| (eee) | “Subsidiary
Option” means “Option” as defined in the Subsidiary Plan; |
| (fff) | “Subsidiary
Plan” means an incentive stock option plan of a subsidiary of the Corporation,
as may be amended from time to time, pursuant to which all new equity-based incentive awards
granted by such subsidiary are governed; |
| (ggg) | “Subsidiary
Share” means “Share” as defined in the Subsidiary Plan; |
| (hhh) | “Tax
Act” has the meaning set forth in Section 4.5(d); |
| (iii) | “Termination
Date” means, subject to applicable law which cannot be waived: |
| (i) | in
the case of an Employee whose employment with the Corporation or a subsidiary of the Corporation
terminates, (i) the date designated by the Employee and the Corporation or a subsidiary of
the Corporation as the “Termination Date” (or similar term) in the Employee’s
Service Agreement, or (ii) if no such Service Agreement exists, the date designated by the
Corporation or a subsidiary of the Corporation, as the case may be, on which the Employee
ceases to be an employee of the Corporation or the subsidiary of the Corporation, as the
case may be, provided that, in the case of termination of employment by voluntary resignation
by the Participant, such date shall not be earlier than the date notice of resignation was
given; and in any event, the “Termination Date” shall be determined without including
any period of reasonable notice that the Corporation or the subsidiary of the Corporation
(as the case may be) may be required by law to provide to the Participant or any pay in lieu
of notice of termination, severance pay or other damages paid or payable to the Participant; |
| (jjj) | “Termination
Date” means, subject to applicable law which cannot be waived: |
| (i) | in
the case of an Employee whose employment with the Corporation or a subsidiary of the Corporation
terminates, (i) the date designated by the Employee and the Corporation or a subsidiary of
the Corporation as the “Termination Date” (or similar term) in the Employee’s
Service Agreement, or (ii) if no such Service Agreement exists, the date designated by the
Corporation or a subsidiary of the Corporation, as the case may be, on which the Employee
ceases to be an employee of the Corporation or the subsidiary of the Corporation, as the
case may be, provided that, in the case of termination of employment by voluntary resignation
by the Participant, such date shall not be earlier than the date notice of resignation was
given; and in any event, the “Termination Date” shall be determined without including
any period of reasonable notice that the Corporation or the subsidiary of the Corporation
(as the case may be) may be required by law to provide to the Participant or any pay in lieu
of notice of termination, severance pay or other damages paid or payable to the Participant; |
| (ii) | in
the case of an Employee described in Section 2.1(aa)(i)(B) or 2.1(aa)(iii) (a “Service
Provider Employee”): |
| (A) | if
such Employee’s employment with the Service Provider terminates or if such Employee
ceases to provide services directly to the Corporation or subsidiary of the Corporation,
as applicable, (i) the date designated by the Employee and the Service Provider as the “Termination
Date” (or similar term) in the Employee’s Service Agreement, or (ii) if no such
Service Agreement exists, the date designated by the Service Provider on which the Employee
ceases to be an employee of the Service Provider or otherwise ceases to provide services
directly to the Corporation or subsidiary of the Corporation, as applicable, provided that,
in the case of termination of employment by voluntary resignation by the Participant, such
date shall not be earlier than the date notice of resignation was given; and in any event,
the “Termination Date” shall be determined without including any period of reasonable
notice that the Service Provider may be required by law to provide to the Participant or
any pay in lieu of notice of termination, severance pay or other damages paid or payable
to the Participant; or |
| (B) | if
the Service Provider employing such Employee ceases to be engaged as a service provider of
the Corporation or subsidiary of the Corporation, as applicable, (i) the date designated
by the Corporation or subsidiary of the Corporation and the Service Provider as the “Termination
Date” (or similar term) in the agreement between the Corporation or subsidiary of the
Corporation and the Service Provider, or (ii) if no such agreement exists, the date designated
by the Corporation or a subsidiary of the Corporation, as the case may be, on which the Service
Provider ceases to provide services to the Corporation or the subsidiary of the Corporation,
as the case may be; |
| (iii) | in
the case of a Consultant whose agreement or arrangement with the Corporation or a subsidiary
of the Corporation terminates, (i) the date designated by the Corporation or the subsidiary
of the Corporation, as the “Termination Date” (or similar term) or expiry date
in the Consultant’s Service Agreement, or (ii) if no such Service Agreement exists,
the date designated by the Corporation or a subsidiary of the Corporation, as the case may
be, on which the Consultant ceases to be a Consultant or a service provider to the Corporation
or the subsidiary of the Corporation, as the case may be, or on which the Participant’s
agreement or arrangement is terminated, provided that in the case of voluntary termination
by the Participant of the Participant’s consulting agreement or other written arrangement,
such date shall not be earlier than the date notice of voluntary termination was given; in
any event, the “Termination Date” shall be determined without including any period
of notice that the Corporation or the subsidiary of the Corporation (as the case may be)
may be required by law to provide to the Participant or any pay in lieu of notice of termination,
termination fees or other damages paid or payable to the Participant; and |
| (iv) | in
the case of a Director, the date such individual ceases to be a Director, |
in
each case, unless the individual continues to be a Participant in another capacity.
Notwithstanding
the foregoing, in the case of a U.S. Taxpayer, a Participant’s “Termination Date” will be the date the Participant
experiences a “separation from service” with the Corporation or a subsidiary of the Corporation within the meaning of Section
409A of the Code.
| (kkk) | “Trading
Day” means any day on which the Exchange is open for trading; |
| (lll) | “U.S.”
or “United States” means the United States of America, its territories
and possessions, any State of the United States, and the District of Columbia; |
| (mmm) | “U.S.
Person” shall mean a “U.S. person” as such term is defined in
Rule 902(k) of Regulation S under the U.S. Securities Act (the definition of which includes,
but is not limited to, (i) any natural person resident in the United States, (ii) any partnership
or corporation organized or incorporated under the laws of the United States, (iii) any partnership
or corporation organized outside of the United States by a U.S. Person principally for the
purpose of investing in securities not registered under the U.S. Securities Act, unless it
is organized, or incorporated, and owned, by accredited investors who are not natural persons,
estates or trusts, and (iv) any estate or trust of which any executor or administrator or
trustee is a U.S. Person); |
| (nnn) | “U.S.
Securities Act” means the United States Securities Act of 1933, as amended; and |
| (ooo) | “U.S.
Taxpayer” shall mean a Participant who, with respect to an Award, is subject to
taxation under the applicable U.S. tax laws. |
| (a) | Whenever
the Plan Administrator exercises discretion in the administration of this Plan, the term
“discretion” means the sole and absolute discretion of the Plan Administrator. |
| (b) | As
used herein, the terms “Article”, “Section”, “Subsection”
and “clause” mean and refer to the specified Article, Section, Subsection and
clause of this Plan, respectively. |
| (c) | Words
importing the singular include the plural and vice versa and words importing any gender include
any other gender. |
| (d) | Unless
otherwise specified, time periods within or following which any payment is to be made or
act is to be done shall be calculated by excluding the day on which the period begins, including
the day on which the period ends, and abridging the period to the immediately preceding Business
Day in the event that the last day of the period is not a Business Day. In the event an action
is required to be taken or a payment is required to be made on a day which is not a Business
Day such action shall be taken or such payment shall be made by the immediately preceding
Business Day. |
| (e) | Unless
otherwise specified, all references to money amounts are to Canadian currency. |
| (f) | The
headings used herein are for convenience only and are not to affect the interpretation of
this Plan. |
Article
3
ADMINISTRATION
This
Plan will be administered by the Plan Administrator and the Plan Administrator has sole and complete authority, in its discretion, to:
| (a) | make
grants of Awards under the Plan relating to the issuance of Shares (including any combination
of Options, Restricted Share Units, Performance Share Units or Deferred Share Units) in such
amounts, to such Eligible Persons and, subject to the provisions of this Plan (including
Section 3.4), on such terms and conditions as it determines, including: |
| (i) | the
time or times at which Awards may be granted; |
| (ii) | the
conditions under which: |
| (A) | Awards
may be granted to Participants; or |
| (B) | Awards
may be forfeited to the Corporation, |
including
any conditions relating to the attainment of specified Performance Goals;
| (iii) | the
number of Shares to be covered by any Award; |
| (iv) | the
price, if any, to be paid by a Participant in connection with the purchase of Shares covered
by any Awards; |
| (v) | whether
restrictions or limitations are to be imposed on the Shares issuable pursuant to grants of
any Award, and the nature of such restrictions or limitations, if any; and |
| (vi) | any
acceleration of exercisability or vesting, or waiver of termination regarding any Award,
based on such factors as the Plan Administrator may determine; |
| (b) | establish
the form or forms of Award Agreements; |
| (c) | cancel,
amend, adjust or otherwise change any Award under such circumstances as the Plan Administrator
may consider appropriate in accordance with the provisions of this Plan; |
| (d) | construe
and interpret this Plan and all Award Agreements; |
| (e) | adopt,
amend, prescribe and rescind administrative guidelines and other rules and regulations relating
to this Plan, including rules and regulations relating to sub- plans established for the purpose
of satisfying applicable foreign laws or for qualifying for favorable tax treatment under
applicable foreign laws; |
| (f) | to
take such steps and require such documentation from Eligible Persons which in its opinion
are necessary or desirable to ensure compliance with the rules and regulations of the Exchange
and all applicable laws; and |
| (g) | make
all other determinations and take all other actions necessary or advisable for the implementation
and administration of this Plan. |
3.2 | Delegation
to Committee |
| (a) | The
initial Plan Administrator shall be the Board. |
| (b) | To
the extent permitted by applicable law, the Board may, from time to time, delegate to a committee
of the Board, including the Compensation and Corporate Governance Committee (the “Committee”),
all or any of the powers conferred on the Plan Administrator pursuant to this Plan, including
the power to sub-delegate to any member(s) of the Committee or any specified officer(s) of
the Corporation or its subsidiaries all or any of the powers delegated by the Board. In such
event, the Committee or any sub-delegate will exercise the powers delegated to it in the
manner and on the terms authorized by the delegating party. Any decision made or action taken
by the Committee or any sub-delegate arising out of or in connection with the administration
or interpretation of this Plan in this context is final and conclusive and binding on the
Corporation and all subsidiaries of the Corporation, all Participants and all other Persons. |
3.3 | Determinations
Binding |
Any
decision made or action taken by the Board, the Committee or any sub-delegate to whom authority has been delegated pursuant to Section
3.2 arising out of or in connection with the administration or interpretation of this Plan is final, conclusive and binding on the Corporation,
the affected Participant(s), their legal and personal representatives and all other Persons.
All
Directors, Employees and Consultants are eligible to participate in the Plan, subject to Section 9.1(a). Participation in the Plan is
voluntary and eligibility to participate does not confer upon any Director, Employee or Consultant any right to receive any grant of
an Award pursuant to the Plan. The extent to which any Director, Employee or Consultant is entitled to receive a grant of an Award pursuant
to the Plan will be determined in the sole and absolute discretion of the Plan Administrator, provided that no Award will be granted
to a Service Provider Employee except with the prior written consent of the relevant Service Provider.
3.5 | Plan
Administrator Requirements |
Any
Award granted under this Plan shall be subject to the requirement that, if at any time the Plan Administrator shall determine that the
listing, registration or qualification of the Shares issuable pursuant to such Award upon any securities exchange or under any Securities
Laws of any jurisdiction, or the consent or approval of the Exchange and any securities commissions or similar securities regulatory
bodies having jurisdiction over the Corporation is necessary as a condition of, or in connection with, the grant or exercise of such
Award or the issuance or purchase of Shares thereunder, such Award may not be accepted or exercised, as applicable, in whole or in part
unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions acceptable to
the Plan Administrator. Without limiting the generality of the foregoing, all Awards shall be issued pursuant to the registration requirements
of the U.S. Securities Act, or pursuant to an exemption or exclusion from such registration requirements. Nothing herein shall be deemed
to require the Corporation to apply for or to obtain such listing, registration, qualification, consent or approval. Participants shall,
to the extent applicable, cooperate with the Corporation in complying with such legislation, rules, regulations and policies.
3.6 | Market
Value Allocation and Subsidiary Plan Requirements |
| (a) | No
later than 30 days after the Corporation files Annual Audited Financial Statements with respect
to the most recent Fiscal Year, the Plan Administrator shall determine the Market Value allocation
ratio (the “MVA Ratio”) with respect to each subsidiary of the Corporation
using the formula set out below: |
MVA
Ratio of a subsidiary |
= |
DCF
of subsidiary |
|
DCF
of all subsidiaries |
where
“DCF” means discounted cash flow. Each year, upon final determination of the MVA Ratios in accordance with this Section
3.6(a), the Corporation shall provide notice to the Exchange of such MVA Ratios including the method of determination.
| (b) | A
Subsidiary may adopt a Subsidiary Plan provided that such Subsidiary Plan will be substantially
in the form attached as Schedule D, or such other form as may be prescribed by the Plan Administrator
from time to time, and will include the following terms and conditions: |
| (i) | The
aggregate number of Subsidiary Shares reserved for issuance pursuant to Subsidiary Options
granted under a Subsidiary Plan shall not exceed 20% of the subsidiary’s total issued
and outstanding Subsidiary Shares as at the effective date of such Subsidiary Plan, or such
additional amount as may be approved from time to time by the shareholders of the subsidiary.
Subsidiary Shares covered by Subsidiary Options which have been settled, exercised or terminated
shall be available for subsequent grants under the applicable Subsidiary Plan. |
| (ii) | The
exercise price with respect to a Subsidiary Option shall be established at the time each
Subsidiary Option is granted, and shall not be less than the price per Subsidiary Share calculated
by dividing, at the time of grant, the MVA Amount by the subsidiary’s total issued
and outstanding Subsidiary Shares. |
| (iii) | Any
amendment to the Subsidiary Plan which is set out in section 10.12(7) of the NEO Exchange
Listing Manual and any other amendment which, if made to the Plan, would require approval
of the holders of voting shares of the Corporation under applicable Securities Laws or Exchange
policies, shall require approval of the holders of voting shares of the Corporation. |
3.7 | Total
Shares Subject to Awards |
| (a) | Subject
to adjustment as provided for in Article 10 and any subsequent amendment to this Plan, the
aggregate number of Shares reserved for issuance pursuant to Awards granted under this Plan
shall not exceed 25% of the Corporation’s total issued and outstanding Shares from
time to time. This Plan is considered an “evergreen” plan, since the Shares covered
by Awards which have been settled, exercised or terminated shall be available for subsequent
grants under the Plan, and the number of Awards available to grant increases as the number
of issued and outstanding Shares increases. |
| (b) | To
the extent any Awards (or portion(s) thereof) under this Plan terminate or are cancelled
for any reason prior to exercise in full, or are surrendered or settled by the Participant,
any Shares subject to such Awards (or portion(s) thereof) shall be added back to the number
of Shares reserved for issuance under this Plan and will again become available for issuance
pursuant to the exercise of Awards granted under this Plan. |
| (c) | Any
Shares issued by the Corporation through the assumption or substitution of outstanding stock
options or other equity-based awards from an acquired company shall not reduce the number
of Shares available for issuance pursuant to the exercise of Awards granted under this Plan. |
3.8 | Limits
on Grants of Awards |
Notwithstanding
anything in this Plan, the aggregate number of Shares:
| (a) | issuable
to Insiders at any time, under all of the Corporation’s Security- Based Compensation
Arrangements, shall not exceed twenty percent (20%) of the Corporation’s issued and
outstanding Shares; and |
| (b) | issued
to Insiders within any one (1) year period, under all of the Corporation’s Security
Based Compensation Arrangements, shall not exceed twenty percent (20%) of the Corporation’s
issued and outstanding Shares, |
provided
that the acquisition of Shares by the Corporation for cancellation shall be disregarded for the purposes of determining non-compliance
with this Section 3.8 for any Awards outstanding prior to such purchase of Shares for cancellation.
Each
Award under this Plan will be evidenced by an Award Agreement. Each Award Agreement will be subject to the applicable provisions of this
Plan and will contain such provisions as are required by this Plan and any other provisions that the Plan Administrator may direct. Any
one officer of the Corporation is authorized and empowered to execute and deliver, for and on behalf of the Corporation, an Award Agreement
to a Participant granted an Award pursuant to this Plan.
3.10 | Non-transferability
of Awards |
Except
to the extent that certain rights may pass to a beneficiary or legal representative upon death of a Participant, by will or as required
by law, no assignment or transfer of Awards, whether voluntary, involuntary, by operation of law or otherwise, vests any interest or
right in such Awards whatsoever in any assignee or transferee and immediately upon any assignment or transfer, or any attempt to make
the same, such Awards will terminate and be of no further force or effect. To the extent that certain rights to exercise any portion
of an outstanding Award pass to a beneficiary or legal representative upon death of a Participant, the period in which such Award can
be exercised by such beneficiary or legal representative shall not exceed one year from the Participant’s death.
Article
4
OPTIONS
The
Plan Administrator may, from time to time, subject to the provisions of this Plan and such other terms and conditions as the Plan Administrator
may prescribe, grant Options to any Participant. The terms and conditions of each Option grant shall be evidenced by an Award Agreement.
The
Plan Administrator will establish the Exercise Price at the time each Option is granted, at the sole discretion of the Plan Administrator,
subject to applicable securities laws and Exchange rules and provided that the Exercise Price must not be less than the Market Price
at the time of granting the Option.
Subject
to any accelerated termination as set forth in this Plan, each Option expires on its Expiry Date.
4.4 | Vesting
and Exercisability |
| (a) | The
Plan Administrator shall have the authority to determine the vesting terms applicable to
grants of Options. |
| (b) | Once
an Option becomes vested, it shall remain vested and shall be exercisable until expiration
or termination of the Option, unless otherwise specified by the Plan Administrator, or as
may be otherwise set forth in a Service Agreement or Award Agreement. Each vested Option
may be exercised at any time or from time to time, in whole or in part, for up to the total
number of Option Shares with respect to which it is then exercisable. The Plan Administrator
has the right to accelerate the date upon which any Option becomes exercisable. |
| (c) | Subject
to the provisions of this Plan and any Award Agreement, Options shall be exercised by means
of a fully completed Exercise Notice delivered to the Corporation. |
| (d) | The
Plan Administrator may provide at the time of granting an Option that the exercise of that
Option is subject to restrictions, in addition to those specified in this Section 4.4, such
as vesting conditions relating to the attainment of specified Performance Goals. |
| (e) | At
the election of the Plan Administrator, Option Shares can be settled in: |
| (i) | one
fully paid and non-assessable Share issued from treasury to the Participant or as the Participant
may direct, |
| (ii) | a
cash payment equal to the In the Money Amount, or |
| (iii) | a
combination of Shares and cash as contemplated by paragraphs (i) and (ii) above. |
4.5 | Payment
of Exercise Price |
| (a) | Unless
otherwise specified by the Plan Administrator at the time of granting an Option and set forth
in the particular Award Agreement, the Exercise Notice must be accompanied by payment of
the Exercise Price. The Exercise Price must be fully paid by certified cheque, wire transfer,
bank draft or money order payable to the Corporation or by such other means as might be specified
from time to time by the Plan Administrator, which may include (i) through an arrangement
with a broker approved by the Corporation (or through an arrangement directly with the Corporation)
whereby payment of the Exercise Price is accomplished with the proceeds of the sale of Shares
deliverable upon the exercise of the Option, (ii) through the cashless exercise process set
out in Section 4.5(b), or (iii) such other consideration and method of payment for the issuance
of Shares to the extent permitted by Securities Laws, or any combination of the foregoing
methods of payment. |
| (b) | Unless
otherwise specified by the Plan Administrator and set forth in the particular Award Agreement,
if permitted by the Plan Administrator, a Participant may, in lieu of exercising an Option
pursuant to an Exercise Notice, elect to surrender such Option to the Corporation (a “Cashless
Exercise”) in consideration for an amount from the Corporation equal to (i) the
Market Price of the Shares issuable on the exercise of such Option (or portion thereof) as
of the date such Option (or portion thereof) is exercised, less (ii) the aggregate Exercise
Price of the Option (or portion thereof) surrendered relating to such Shares (the “In-the-Money
Amount”), by written notice to the Corporation indicating the number of Options
such Participant wishes to exercise using the Cashless Exercise, and such other information
that the Corporation may require. Subject to Section 8.3, the Corporation shall satisfy payment
of the In-the-Money Amount by delivering to the Participant such number of Shares (rounded
down to the nearest whole number) having a fair market value equal to the In-the-Money Amount. |
| (c) | No
Shares will be issued or transferred until full payment therefor has been received by the
Corporation, or arrangements for such payment have been made to the satisfaction of the Plan
Administrator. |
| (d) | If
a Participant surrenders Options through a Cashless Exercise pursuant to Section 4.5(b),
to the extent that such Participant would be entitled to a deduction under paragraph 110(1)(d)
of the Income Tax Act (Canada) (the “Tax Act”) in respect of such
surrender if the election described in subsection 110(1.1) of the Tax Act were made and filed
(and the other procedures described therein were undertaken) on a timely basis after such
surrender, the Corporation will cause such election to be so made and filed (and such other
procedures to be so undertaken). |
Article
5
RESTRICTED
SHARE UNITS
| (a) | The
Plan Administrator may, from time to time, subject to the provisions of this Plan and such
other terms and conditions as the Plan Administrator may prescribe, grant RSUs to any Participant
in respect of a bonus or similar payment in respect of services rendered by the applicable
Participant in a taxation year (the “RSU Service Year”). The terms and
conditions of each RSU grant may be evidenced by an Award Agreement. Each RSU will consist
of a right to receive a Share, cash payment, or a combination thereof (as provided in Section
5.4(a)), upon the settlement of such RSU. |
| (b) | The
number of RSUs (including fractional RSUs) granted at any particular time pursuant to this
Article 5 will be calculated by dividing (i) the amount of any bonus or similar payment that
is to be paid in RSUs, as determined by the Plan Administrator, by (ii) the Market Price. |
All
RSUs received by a Participant shall be credited to an account maintained for the Participant on the books of the Corporation, as of
the Date of Grant.
The
Plan Administrator shall have the authority to determine any vesting terms applicable to the grant of RSUs, provided that the terms comply
with Section 409A, with respect to a U.S. Taxpayer.
| (a) | The
Plan Administrator shall have the sole authority to determine the settlement terms applicable
to the grant of RSUs, provided that with respect to a U.S. Taxpayer the terms comply with
Section 409A to the extent it is applicable. Subject to Section 11.6(d) below and except
as otherwise provided in an Award Agreement, on the settlement date for any RSU, the Participant
shall redeem each vested RSU for the following at the election of the Participant but subject
to the approval of the Plan Administrator: |
| (i) | one
fully paid and non-assessable Share issued from treasury to the Participant or as the Participant
may direct, |
| (iii) | a
combination of Shares and cash as contemplated by paragraphs (i) and (ii) above. |
| (b) | Any
cash payments made under this Section 5.4 by the Corporation to a Participant in respect
of RSUs to be redeemed for cash shall be calculated by multiplying the number of RSUs to
be redeemed for cash by the Market Price per Share as at the settlement date. |
| (c) | Payment
of cash to Participants on the redemption of vested RSUs may be made through the Corporation’s
payroll in the pay period that the settlement date falls within. |
| (d) | Notwithstanding
any other terms of this Plan but subject to Section 11.6(d) below and except as otherwise
provided in an Award Agreement, no settlement date for any RSU shall occur, and no Share
shall be issued or cash payment shall be made in respect of any RSU, under this Section 5.4
any later than the final Business Day of the third calendar year following the applicable
RSU Service Year. |
Article
6
PERFORMANCE
SHARE UNITS
The
Plan Administrator may, from time to time, subject to the provisions of this Plan and such other terms and conditions as the Plan Administrator
may prescribe, grant PSUs to any Participant in respect of a bonus or similar payment in respect of services rendered by the applicable
Participant in a taxation year (the “PSU Service Year”). The terms and conditions of each PSU grant shall be evidenced
by an Award Agreement, provided that with respect to a U.S. Taxpayer the terms comply with Section 409A to the extent it is applicable.
Each PSU will consist of a right to receive a Share, cash payment, or a combination thereof (as provided in Section 6.6(a)), upon the
achievement of such Performance Goals during such performance periods as the Plan Administrator shall establish.
The
Performance Goals to be achieved during any performance period, the length of any performance period, the amount of any PSUs granted,
the effect of termination of a Participant’s service and the amount of any payment or transfer to be made pursuant to any PSU will
be determined by the Plan Administrator and by the other terms and conditions of any PSU, all as set forth in the applicable Award Agreement.
The
Plan Administrator will issue Performance Goals prior to the Date of Grant to which such Performance Goals pertain. The Performance Goals
may be based upon the achievement of corporate, divisional or individual goals, and may be applied to performance relative to an index
or comparator group, or on any other basis determined by the Plan Administrator. Following the Date of Grant, the Plan Administrator
may modify the Performance Goals as necessary to align them with the Corporation’s corporate objectives, subject to any limitations
set forth in an Award Agreement or Service Agreement. The Performance Goals may include a threshold level of performance below which
no payment will be made (or no vesting will occur), levels of performance at which specified payments will be made (or specified vesting
will occur), and a maximum level of performance above which no additional payment will be made (or at which full vesting will occur),
all as set forth in the applicable Award Agreement.
All
PSUs received by a Participant shall be credited to an account maintained for the Participant on the books of the Corporation, as of
the Date of Grant.
The
Plan Administrator shall have the authority to determine any vesting terms applicable to the grant of PSUs.
| (a) | The
Plan Administrator shall have the authority to determine the settlement terms applicable
to the grant of PSUs provided that with respect to a U.S. Taxpayer the terms comply with
Section 409A to the extent it is applicable. Subject to Section 11.6(d) below and except
as otherwise provided in an Award Agreement, on the settlement date for any PSU, the Participant
shall redeem each vested PSU for the following at the election of the Participant but subject
to the approval of the Plan Administrator: |
| (i) | one
fully paid and non-assessable Share issued from treasury to the Participant or as the Participant
may direct, |
| (iii) | a
combination of Shares and cash as contemplated by paragraphs (i) and (ii) above. |
| (b) | Any
cash payments made under this Section 6.6 by the Corporation to a Participant in respect
of PSUs to be redeemed for cash shall be calculated by multiplying the number of PSUs to
be redeemed for cash by the Market Price per Share as at the settlement date. |
| (c) | Payment
of cash to Participants on the redemption of vested PSUs may be made through the Corporation’s
payroll in the pay period that the settlement date falls within. |
| (d) | Notwithstanding
any other terms of this Plan but subject to Section 11.6(d) below and except as otherwise
provided in an Award Agreement, no settlement date for any PSU shall occur, and no Share
shall be issued or cash payment shall be made in respect of any PSU, under this Section 6.6
any later than the final Business Day of the third calendar year following the applicable
PSU Service Year. |
Article
7
DEFERRED
SHARE UNITS
| (a) | The
Board may fix from time to time a portion of the Director Fees that is to be payable in the
form of DSUs. In addition, each Electing Person is given, subject to the conditions stated
herein, the right to elect in accordance with Section 7.1(b) to participate in the grant
of additional DSUs pursuant to this Article 7. An Electing Person who elects to participate
in the grant of additional DSUs pursuant to this Article 7 shall receive their Elected Amount
(as that term is defined below) in the form of DSUs. The “Elected Amount”
shall be an amount, as elected by the Director, in accordance with applicable tax law, between
0% and 100% of any Director Fees that would otherwise be paid in cash (the “Cash
Fees”). |
| (b) | Each
Electing Person who elects to receive their Elected Amount in the form of DSUs will be required
to file a notice of election in the form of Schedule A hereto (the “Election Notice”)
with the Chief Financial Officer of the Corporation or as directed by the Plan Administrator:
(i) in the case of an existing Electing Person, by December 31st in the year prior
to the year to which such election is to apply (other than for Director Fees payable for
the 2022 financial year, in which case any Electing Person who is not a U.S. Taxpayer as
of the date of this Plan shall file the Election Notice by the date that is 30 days from
the Effective Date with respect to compensation paid for services to be performed after such
date); and (ii) in the case of a newly appointed Electing Person who is not a U.S. Taxpayer,
within 30 days of such appointment with respect to compensation paid for services to be performed
after such date. In the case of the first year in which an Electing Person who is a U.S.
Taxpayer first becomes an Electing Person under the Plan (or any plan required to be aggregated
with the Plan under Section 409A), an initial Election Notice may be filed within 30 days
of such appointment only with respect to compensation paid for services to be performed after
the end of the 30-day election period. If no election is made within the foregoing time frames,
the Electing Person shall be deemed to have elected to be paid the entire amount of his or
her Cash Fees in cash. |
| (c) | Subject
to Subsection 7.1(d), the election of an Electing Person under Subsection 7.1(b) shall be
deemed to apply to all periods in calendar years following the calendar year for which it
is made under Section 7.1(b) until it is terminated under Section 7.1(d). |
| (d) | Each
Electing Person who is not a U.S. Taxpayer is entitled once per calendar year to terminate
his or her election to receive DSUs by filing with the Chief Financial Officer of the Corporation
a termination notice in the form of Schedule B. Such termination shall be effective immediately
upon receipt of such notice, provided that the Corporation has not imposed a “black-out”
on trading. Thereafter, any portion of such Electing Person’s Cash Fees payable or
paid in the same calendar year and, subject to complying with Subsection 7.1(b), all subsequent
calendar years shall be paid in cash. For greater certainty, to the extent an Electing Person
terminates his or her participation in the grant of DSUs pursuant to this Article 7, he or
she shall not be entitled to elect to receive the Elected Amount, or any other amount of
his or her Cash Fees in DSUs again until the calendar year following the year in which the
termination notice is delivered. An election by a U.S. Taxpayer to receive the Elected Amount
in DSUs for any calendar year (or portion thereof) is irrevocable for that calendar year
after the expiration of the election period for that year and any termination of the election
will not take effect until the first day of the calendar year following the calendar year
in which the termination notice in the form of Schedule C is delivered the Chief Financial
Officer of the Corporation. |
| (e) | Any
DSUs granted pursuant to this Article 7 prior to the delivery of a termination notice pursuant
to Section 7.1(d) shall remain in the Plan following such termination and will be redeemable
only in accordance with the terms of the Plan. |
| (f) | The
number of DSUs (including fractional DSUs) granted at any particular time pursuant to this
Article 7 will be calculated by dividing (i) the amount of Director Fees that are to be paid
as DSUs, as determined by the Plan Administrator or Director Fees that are to be paid in
DSUs (including any Elected Amount), by (ii) the Market Price of a Share on the Date of Grant. |
| (g) | In
addition to the foregoing, the Plan Administrator may, from time to time, subject to the
provisions of this Plan and such other terms and conditions as the Plan Administrator may
prescribe, grant DSUs to any Participant. |
All
DSUs received by a Participant (which, for greater certainty includes Electing Persons) shall be credited to an account maintained for
the Participant on the books of the Corporation, as of the Date of Grant. The terms and conditions of each DSU grant shall be evidenced
by an Award Agreement.
Except
as otherwise determined by the Plan Administrator or as set forth in the particular Award Agreement, DSUs shall vest immediately upon
grant.
| (a) | DSUs
shall be settled on the date established in the Award Agreement; provided, however that if
there is no Award Agreement or the Award Agreement does not establish a date for the settlement
of the DSUs, then, for a Participant who is not a U.S. Taxpayer the settlement date shall
be the date determined by the Participant (which date shall not be earlier than the Termination
Date), and for a Participant who is a U.S. taxpayer, the settlement date shall be the date
determined by the Participant in accordance with the Election Notice (which date shall not
be earlier than the “separation from service” (within the meaning of Section
409A)). On the settlement date for any DSU, the Participant shall redeem each vested DSU
for: |
| (i) | one
fully paid and non-assessable Share issued from treasury to the Participant or as the Participant
may direct; or |
| (ii) | at
the election of the Participant and subject to the approval of the Plan Administrator, a
cash payment. |
| (b) | Any
cash payments made under this Section 7.4 by the Corporation to a Participant in respect
of DSUs to be redeemed for cash shall be calculated by multiplying the number of DSUs to
be redeemed for cash by the Market Price per Share as at the settlement date. |
| (c) | Payment
of cash to Participants on the redemption of vested DSUs may be made through the Corporation’s
payroll or in such other manner as determined by the Corporation. |
7.5 | No
Additional Amount or Benefit |
For
greater certainty, neither a Participant to whom DSUs are granted nor any person with whom such Participant does not deal at arm’s
length (for purposes of the Tax Act) shall be entitled, either immediately or in the future, either absolutely or contingently, to receive
or obtain any amount or benefit granted or to be granted for the purpose of reducing the impact, in whole or in part, of any reduction
in the Market Price of the Shares to which the DSUs relate.
Article
8
ADDITIONAL
AWARD TERMS
| (a) | Unless
otherwise determined by the Plan Administrator or as set forth in the particular Award Agreement,
an Award of RSUs, PSUs and DSUs shall include the right for such RSUs, PSUs and DSUs to be
credited with dividend equivalents in the form of additional RSUs, PSUs and DSUs, respectively,
as of each dividend payment date in respect of which normal cash dividends are paid on Shares.
Such dividend equivalents shall be computed by dividing: (a) the amount obtained by multiplying
the amount of the dividend declared and paid per Share by the number of RSUs, PSUs and DSUs,
as applicable, held by the Participant on the record date for the payment of such dividend,
by (b) the Market Price at the close of the first Business Day immediately following the
dividend record date, with fractions computed to three decimal places. Dividend equivalents
credited to a Participant’s account shall vest in proportion to the RSUs, PSUs and
DSUs to which they relate, and shall be settled in accordance with Subsections 5.4, 6.6,
and 7.4 respectively. |
| (b) | The
foregoing does not obligate the Corporation to declare or pay dividends on Shares and nothing
in this Plan shall be interpreted as creating such an obligation. |
In
the event that an Award expires, at a time when a scheduled restricted period is in place or an undisclosed material change or material
fact in the affairs of the Corporation exists, the expiry of such Award and any payout with respect thereto will be the (a) the date
that is 10 Business Days after which such scheduled restricted period terminates or there is no longer such undisclosed material change
or material fact or (b) if the Participant is a U.S. Taxpayer, the earlier of the date described in (a) and December 31 of the then current
calendar year, provided the expiry of an Option may not be extended beyond the scheduled Expiry Date of such Option.
Notwithstanding
any other terms of this Plan, the granting, vesting or settlement of each Award under this Plan is subject to the condition that if at
any time the Plan Administrator determines, in its discretion, that the satisfaction of withholding tax or other withholding liabilities
is necessary or desirable in respect of such grant, vesting or settlement, such action is not effective unless such withholding has been
effected to the satisfaction of the Plan Administrator. In such circumstances, the Plan Administrator may require that a Participant
pay to the Corporation the minimum amount as the Corporation or a subsidiary of the Corporation is obliged to withhold or remit to the
relevant taxing authority in respect of the granting, vesting or settlement of the Award. Any such additional payment is due no later
than the date on which such amount with respect to the Award is required to be remitted to the relevant tax authority by the Corporation
or a subsidiary of the Corporation, as the case may be. Alternatively, and subject to any requirements or limitations under applicable
law, the Corporation or any Affiliate may (a) withhold such amount from any remuneration or other amount payable by the Corporation or
any Affiliate to the Participant, (b) require the sale, on behalf of the applicable Participant, of a number of Shares issued upon exercise,
vesting, or settlement of such Award and the remittance to the Corporation of the net proceeds from such sale sufficient to satisfy such
amount, or (c) enter into any other suitable arrangements for the receipt of such amount.
Notwithstanding
any other terms of this Plan, Awards may be subject to potential cancellation, recoupment, rescission, payback or other action in accordance
with the terms of any clawback, recoupment or similar policy adopted by the Corporation or the relevant subsidiary of the Corporation,
or as set out in the Participant’s Service Agreement or Award Agreement, or as otherwise required by law or the rules of the Exchange.
The Plan Administrator may at any time waive the application of this Section 8.4 to any Participant or category of Participants.
Article
9
TERMINATION
OF EMPLOYMENT OR SERVICES
9.1 | Termination
of Employee, Consultant or Director |
Subject
to Section 9.4, unless otherwise determined by the Plan Administrator or as set forth in the Participant’s Service Agreement or
Award Agreement:
| (a) | a
Participant’s eligibility to receive further grants of Options or other Awards under
this Plan ceases as of: (i) the date that the Corporation or a subsidiary of the Corporation,
as the case may be, provides the Participant with written notification that the Participant’s
employment, consulting agreement or arrangement is terminated, notwithstanding that such
date may be prior to the Termination Date; or (ii) the date of the death or Disability of
the Participant; and |
| (b) | for
greater certainty, subject to Section 409A, Options or other Awards are not affected by a
change of employment or consulting agreement or arrangement, or directorship within or among
the Corporation or a subsidiary of the Corporation for so long as the Participant continues
to be a Director, Employee or Consultant, as applicable, of the Corporation or a subsidiary
of the Corporation. |
9.2 | Termination
of Employee, Consultant or Director – Treatment of Options |
Subject
to Section 9.4, unless otherwise determined by the Plan Administrator or as set forth in the Participant’s Service Agreement or
Award Agreement, if a Participant’s employment, service or engagement terminates in any of the following circumstances, Options
shall be treated in the manner set forth below:
Reason
for Termination |
|
Vesting |
|
Expiry
of Option |
Death |
|
Vesting
to be determined in accordance the Award Agreement. |
|
Options
expire on the earlier of the Expiry Date and one year following the date of death. |
|
|
|
|
|
Disability |
|
Vesting
to be determined in accordance the Award Agreement. |
|
Options
expire on the earlier of the Expiry Date and one year following the date of Disability. |
|
|
|
|
|
Resignation |
|
Unvested
Options as of the date of resignation automatically terminate and shall be forfeited. |
|
Options
expire on the earlier of the Expiry Date and ninety days following the date of resignation.
Options
granted to Persons engaged primarily to provide Investor Relations Activities expire on the earlier of the Expiry Date and 30 days
following the date of resignation, or as otherwise allowed by the Plan Administrator. |
|
|
|
|
|
Termination
without Cause/Constructive Dismissal - No Change in Control Involved |
|
Vesting
to be determined in accordance the Award Agreement. |
|
Options
expire on the earlier of Expiry Date and 90 days following the Termination Date, or as otherwise allowed by the Plan Administrator. |
|
|
|
|
|
Change
in Control |
|
Vesting
to be determined in accordance with Section 10.2. |
|
Expiry
Date to be determined in accordance with Section 10.2. |
|
|
|
|
|
Termination
with Cause |
|
Options,
whether vested or unvested as of the Termination Date, automatically terminate and shall be forfeited. |
|
Options,
whether vested or unvested as of the Termination Date, automatically terminate and shall be forfeited. |
9.3 | Termination
of Employee, Consultant or Director – Treatment of RSUs, PSUs and DSUs |
Subject
to Section 9.4, unless otherwise determined by the Plan Administrator or as set forth in the Participant’s Service Agreement or
Award Agreement, if a Participant’s employment, service or engagement terminates in any of the following circumstances, RSUs, PSUs
and DSUs shall be treated in the manner set forth below:
Reason
for Termination |
|
Treatment
of RSUs, PSUs and DSUs |
Death |
|
Vesting
of any outstanding RSUs, PSUs and DSUs shall be determined in accordance with the terms of the applicable Award Agreement and any
such vested RSUs, PSUs and DSUs shall be available for settlement in accordance with Section 5.4, Section 6.6 and Section 7.4, respectively. |
|
|
|
Disability |
|
Vesting
of any outstanding RSUs, PSUs and DSUs shall be determined in accordance with the terms of the applicable Award Agreement and any
such vested RSUs, PSUs and DSUs shall be available for settlement in accordance with Section 5.4, Section 6.6 and Section 7.4, respectively. |
|
|
|
Resignation |
|
All
outstanding RSUs, PSUs and DSUs that were not vested on or before the date of resignation
shall in all respects terminate as of the date of resignation.
All
outstanding RSUs, PSUs and DSUs that were vested on or before the date of resignation shall be available for settlement as of the
date of resignation in accordance with Section 5.4, Section 6.6 and Section 7.4, respectively, after which time any remaining RSUs,
PSUs and DSUs shall in all respects terminate. |
|
|
|
Termination
without Cause/Wrongful Dismissal - No Change in Control Involved |
|
All
outstanding RSUs, PSUs and DSUs that were not vested on or before the Termination Date shall
in all respects terminate as of the Termination Date.
All
outstanding RSUs, PSUs and DSUs that were vested on or before the Termination Date shall be available for settlement as of Termination
Date in accordance with Section 5.4, Section 6.6 and Section 7.4, respectively, after which time any remaining RSUs, PSUs and DSUs
shall in all respects terminate. |
|
|
|
Change
in Control |
|
Vesting
to be determined in accordance with Section 10.2. |
|
|
|
Termination
of the Participant for Cause |
|
All
outstanding RSUs, PSUs and DSUs (whether vested or unvested) shall automatically terminate on the Termination Date and be forfeit.
|
9.4 | Discretion
to Permit Acceleration |
Notwithstanding
the provisions of Sections 9.2 and 9.3, the Plan Administrator may, in its discretion, at any time prior to, or following the events
contemplated in such Sections, or in a Service Agreement or Award Agreement, permit the acceleration of vesting of any or all Awards
or waive termination of any or all Awards, all in the manner and on the terms as may be authorized by the Plan Administrator, and with
respect to Awards to U.S. Taxpayers, in a manner that does not result in adverse tax consequences under Section 409A of the Code.
Article
10
EVENTS
AFFECTING THE CORPORATION
The
existence of any Awards does not affect in any way the right or power of the Corporation or its shareholders to make, authorize or determine
any adjustment, recapitalization, reorganization or any other change in the Corporation’s capital structure or its business, or
any amalgamation, combination, arrangement, merger or consolidation involving the Corporation, to create or issue any bonds, debentures,
Shares or other securities of the Corporation or to determine the rights and conditions attaching thereto, to effect the dissolution
or liquidation of the Corporation or any sale or transfer of all or any part of its assets or business, or to effect any other corporate
act or proceeding, whether of a similar character or otherwise, whether or not any such action referred to in this Article 10 would have
an adverse effect on this Plan or on any Award granted hereunder.
Except
as may be set forth in the Participant’s Service Agreement or Award Agreement:
| (a) | Subject
to this Section 10.2, but notwithstanding anything else in this Plan or any Award Agreement,
the Plan Administrator may, without the consent of any Participant, take such steps as it
deems necessary or desirable, including to cause (i) the conversion or exchange of any outstanding
Awards into or for, rights or other securities of substantially equivalent value, as determined
by the Plan Administrator in its discretion, in any entity participating in or resulting
from a Change in Control; (ii) outstanding Awards to vest and become exercisable, realizable,
or payable, or restrictions applicable to an Award to lapse, in whole or in part prior to
or upon consummation of such merger or Change in Control, and, to the extent the Plan Administrator
determines, terminate upon or immediately prior to the effectiveness of such merger or Change
in Control; (iii) the termination of an Award in exchange for an amount of cash and/or property,
if any, equal to the amount that would have been attained upon the exercise or settlement
of such Award or realization of the Participant’s rights as of the date of the occurrence
of the transaction (and, for the avoidance of doubt, if as of the date of the occurrence
of the transaction the Plan Administrator determines in good faith that no amount would have
been attained upon the exercise or settlement of such Award or realization of the Participant’s
rights, then such Award may be terminated by the Corporation without payment); (iv) the replacement
of such Award with other rights or property selected by the Board of Directors in its sole
discretion where such replacement would not adversely affect the holder; or (v) any combination
of the foregoing. In taking any of the actions permitted under this Section 10.2(a), the
Plan Administrator will not be required to treat all Awards similarly in the transaction.
Notwithstanding the foregoing, in the case of Options held by a Canadian Taxpayer, the Plan
Administrator may not cause the Canadian Taxpayer to receive (pursuant to this Subsection
10.2(a)) any property in connection with a Change in Control other than rights to acquire
shares of a corporation or units of a “mutual fund trust” (as defined in the
Tax Act), of the Corporation or a “qualifying person” (as defined in the Tax
Act) that does not deal at arm’s length (for purposes of the Tax Act) with the Corporation,
as applicable, at the time such rights are issued or granted. |
| (b) | Notwithstanding
Article 9, and except as otherwise provided in the Participant’s Service Agreement,
if within 12 months following the completion of a transaction resulting in a Change in Control,
a Participant’s employment, consultancy or directorship is terminated by the Corporation
or a subsidiary of the Corporation without Cause: |
| (i) | any
unvested Awards held by the Participant at the Termination Date may vest in the sole discretion
of the Plan Administrator; and |
| (ii) | any
vested Awards of Participants may, subject to Sections 5.4(d) and 6.6(d) (where applicable),
be exercised, surrendered or settled by such Participant at any time during the period that
terminates on the earlier of: (A) the Expiry Date of such Award; and (B) the date that is
90 days after the Termination Date, provided that any vested Awards (other than Options)
granted to U.S. Taxpayers will be settled in accordance with Section 5.4, Section 6.6 and
Section 7.4, respectively, after which time any remaining RSUs, PSUs and DSUs shall in all
respects terminate. Any Award that has not been exercised, surrendered or settled at the
end of such period will be immediately forfeited and cancelled. |
| (c) | Notwithstanding
Subsection 10.2(a) and unless otherwise determined by the Plan Administrator, if, as a result
of a Change in Control, the Shares will cease trading on an Exchange, then the Corporation
may terminate all of the Awards, other than an Option held by a Canadian Taxpayer for the
purposes of the Tax Act, granted under this Plan at the time of and subject to the completion
of the Change in Control transaction by paying to each holder at or within a reasonable period
of time following completion of such Change in Control transaction an amount for each Award
equal to the Market Price. |
| (d) | It
is intended that any actions taken under this Section 10.2 will comply with the requirements
of Section 409A of the Code with respect to Awards granted to U.S. Taxpayers. |
10.3 | Reorganization
of Corporation’s Capital |
Should
the Corporation effect a subdivision or consolidation of Shares or any similar capital reorganization or a payment of a stock dividend
(other than a stock dividend that is in lieu of a cash dividend), or should any other change be made in the capitalization of the Corporation
that does not constitute a Change in Control and that would warrant the amendment or replacement of any existing Awards in order to adjust
the number of Shares that may be acquired on the vesting of outstanding Awards and/or the terms of any Award in order to preserve proportionately
the rights and obligations of the Participants holding such Awards, the Plan Administrator will, subject to the prior approval of the
Exchange, authorize such steps to be taken as it may consider to be equitable and appropriate to that end.
10.4 | Other
Events Affecting the Corporation |
In
the event of an amalgamation, combination, arrangement, merger or other transaction or reorganization involving the Corporation and occurring
by exchange of Shares, by sale or lease of assets or otherwise, that does not constitute a Change in Control and that warrants the amendment
or replacement of any existing Awards in order to adjust the number and/or type of Shares that may be acquired, or by reference to which
such Awards may be settled, on the vesting of outstanding Awards and/or the terms of any Award in order to preserve proportionately the
rights and obligations of the Participants holding such Awards, the Plan Administrator will, subject to the prior approval of the Exchange,
authorize such steps to be taken as it may consider to be equitable and appropriate to that end.
10.5 | Immediate
Acceleration of Awards |
In
taking any of the steps provided in Sections 10.3 and 10.4, the Plan Administrator will not be required to treat all Awards similarly
and where the Plan Administrator determines that the steps provided in Sections 10.3 and 10.4 would not preserve proportionately the
rights, value and obligations of the Participants holding such Awards in the circumstances or otherwise determines that it is appropriate,
the Plan Administrator may, but is not required to, permit the immediate vesting of any unvested Awards.
10.6 | Issue
by Corporation of Additional Shares |
Except
as expressly provided in this Article 10, neither the issue by the Corporation of shares of any class or securities convertible into
or exchangeable for shares of any class, nor the conversion or exchange of such shares or securities, affects, and no adjustment by reason
thereof is to be made with respect to the number of Shares that may be acquired as a result of a grant of Awards.
No
fractional Shares will be issued pursuant to an Award. Accordingly, if, as a result of any adjustment under this Article 10 or a dividend
equivalent, a Participant would become entitled to a fractional Share, the Participant has the right to acquire only the adjusted number
of full Shares and no payment or other adjustment will be made with respect to the fractional Shares, which shall be disregarded.
Article
11
U.S.
TAXPAYERS
11.1 | Provisions
for U.S. Taxpayers |
Options
granted under this Plan to U.S. Taxpayers may be non-qualified stock options or incentive stock options qualifying under Section 422
of the Code (“ISOs”). Each Option shall be designated in the Award Agreement as either an ISO or a non-qualified stock
option. If an Award Agreement fails to designate an Option as either an ISO or non-qualified stock option, the Option will be a non-qualified
stock option. The Corporation shall not be liable to any Participant or to any other Person if it is determined that an Option intended
to be an ISO does not qualify as an ISO. Non- qualified stock options will be granted to a U.S. Taxpayer only if (i) such U.S. Taxpayer
performs services for the Corporation or any corporation or other entity in which the Corporation has a direct or indirect controlling
interest or otherwise has a significant ownership interest, as determined under Section 409A, such that the Option will constitute an
option to acquire “service recipient stock” within the meaning of Section 409A, or (ii) such option otherwise is exempt from
Section 409A.
Subject
to any limitations in Section 3.6, the aggregate number of Shares reserved for issuance in respect of granted ISOs shall not exceed 10,000,000,
and the terms and conditions of any ISOs granted to a U.S. Taxpayer on the Date of Grant hereunder, including the eligible recipients
of ISOs, shall be subject to the provisions of Section 422 of the Code, and the terms, conditions, limitations and administrative procedures
established by the Plan Administrator from time to time in accordance with this Plan. At the discretion of the Plan Administrator, ISOs
may only be granted to an individual who is an employee of the Corporation, or of a “parent corporation” or “subsidiary
corporation” of the Corporation, as such terms are defined in Sections 424(e) and (f) of the Code.
11.3 | ISO
Grants to 10% Shareholders |
Notwithstanding
anything to the contrary in this Plan, if an ISO is granted to a person who owns shares representing more than 10% of the voting power
of all classes of shares of the Corporation or of a “parent corporation” or “subsidiary corporation”, as such
terms are defined in Section 424(e) and (f) of the Code, on the Date of Grant, the term of the Option shall not exceed five years from
the time of grant of such Option and the Exercise Price shall be at least 110% of the Market Price of the Shares subject to the Option.
11.4 | $100,000
Per Year Limitation for ISOs |
To
the extent the aggregate Market Price as at the Date of Grant of the Shares for which ISOs are exercisable for the first time by any
person during any calendar year (under all plans of the Corporation and any “parent corporation” or “subsidiary corporation”,
as such terms are defined in Section 424(e) and (f) of the Code) exceeds US$100,000, such excess ISOs shall be treated as non-qualified
stock options.
11.5 | Disqualifying
Dispositions |
Each
person awarded an ISO under this Plan shall notify the Corporation in writing immediately after the date he or she makes a disposition
or transfer of any Shares acquired pursuant to the exercise of such ISO if such disposition or transfer is made (a) within two years
from the Date of Grant or (b) within one year after the date such person acquired the Shares. Such notice shall specify the date of such
disposition or other transfer and the amount realized, in cash, other property, assumption of indebtedness or other consideration, by
the person in such disposition or other transfer. The Corporation may, if determined by the Plan Administrator and in accordance with
procedures established by it, retain possession of any Shares acquired pursuant to the exercise of an ISO as agent for the applicable
person until the end of the later of the periods described in (a) or (b) above, subject to complying with any instructions from such
person as to the sale of such Shares.
11.6 | Section
409A of the Code |
| (a) | This
Plan will be construed and interpreted to be exempt from, or where not so exempt, to comply
with Section 409A of the Code to the extent required to preserve the intended tax consequences
of this Plan. Any reference in this Plan to Section 409A of the Code shall also include any
regulation promulgated thereunder or any other formal guidance issued by the Internal Revenue
Service with respect to Section 409A of the Code. Each Award shall be construed and administered
such that the Award either (A) qualifies for an exemption from the requirements of Section
409A of the Code or (B) satisfies the requirements of Section 409A of the Code. If an Award
is subject to Section 409A of the Code, (I) distributions shall only be made in a manner
and upon an event permitted under section 409A of the Code, (II) payments to be made upon
a termination of employment or service shall only be made upon a “separation from service”
under Section 409A of the Code, (Ill) unless the Award specifies otherwise, each installment
payment shall be treated as a separate payment for purposes of Section 409A of the Code,
and (IV) in no event shall a Participant, directly or indirectly, designate the calendar
year in which a distribution is made except in accordance with Section 409A of the Code.
To the extent that an Award or payment, or the settlement or deferral thereof, is subject
to Section 409A of the Code, the Award will be granted, paid, settled or deferred in a manner
that will meet the requirements of Section 409A of the Code, such that the grant, payment,
settlement or deferral will not be subject to the additional tax or interest applicable under
Section 409A of the Code. The Corporation reserves the right to amend this Plan to the extent
it reasonably determines is necessary in order to preserve the intended tax consequences
of this Plan in light of Section 409A of the Code. In no event will the Corporation or any
of its subsidiaries or Affiliates be liable for any tax, interest or penalties that may be
imposed on a Participant under Section 409A of the Code or any damages for failing to comply
with Section 409A of the Code. |
| (b) | All
terms of the Plan that are undefined or ambiguous must be interpreted in a manner that complies
with Section 409A of the Code if necessary to comply with Section 409A of the Code. |
| (c) | The
Plan Administrator, in its sole discretion, may permit the acceleration of the time or schedule
of payment of a U.S. Taxpayer’s vested Awards in the Plan under circumstances that
constitute permissible acceleration events under Section 409A of the Code. |
| (d) | Notwithstanding
any provisions of the Plan to the contrary, in the case of any “specified employee”
within the meaning of Section 409A of the Code who is a U.S. Taxpayer, distributions of non-qualified
deferred compensation under Section 409A of the Code made in connection with a “separation
from service” within the meaning set forth in Section 409A of the Code may not be made
prior to the date which is six months and one day after the date of separation from service
(or, if earlier, the date of death of the U.S. Taxpayer). Any amounts subject to a delay
in payment pursuant to the preceding sentence shall be paid as soon practicable following
such six-month anniversary of such separation from service. |
11.7 | Application
of Article 11 to U.S. Taxpayers |
For
greater certainty, the provisions of this Article 11 shall only apply to U.S. Taxpayers.
Article
12
AMENDMENT,
SUSPENSION OR TERMINATION OF THE PLAN
12.1 | Amendment,
Suspension, or Termination of the Plan |
Subject
to Section 12.3, the Plan Administrator may from time to time, without notice and without approval of the holders of voting shares of
the Corporation, amend, modify, change, suspend or terminate the Plan or any Awards granted pursuant to the Plan as it, in its discretion
determines appropriate, provided, however, that:
| (a) | no
such amendment, modification, change, suspension or termination of the Plan or any Awards
granted hereunder may materially impair any rights of a Participant or materially increase
any obligations of a Participant under the Plan without the consent of the Participant, unless
the Plan Administrator determines such adjustment is required or desirable in order to comply
with any applicable Securities Laws or Exchange requirements; and |
| (b) | any
amendment that would cause an Award held by a U.S. Taxpayer to be subject to income inclusion
under Section 409A of the Code shall be null and void ab initio with respect to the U.S.
Taxpayer unless the consent of the U.S. Taxpayer is obtained. |
Without
limiting the generality of Section 12.1 and subject to Section 12.3, the Plan Administrator may, without shareholder approval, at any
time or from time to time, amend the Plan for the purposes of:
| (a) | making
any amendments to the general vesting provisions of each Award; |
| (b) | making
any amendments to the provisions set out in Article 9; |
| (c) | making
any amendments to add covenants of the Corporation for the protection of Participants, as
the case may be, provided that the Plan Administrator shall be of the good faith opinion
that such additions will not be prejudicial to the rights or interests of the Participants,
as the case may be; |
| (d) | making
any amendments not inconsistent with the Plan as may be necessary or desirable with respect
to matters or questions which, in the good faith opinion of the Plan Administrator, having
in mind the best interests of the Participants, it may be expedient to make, including amendments
that are desirable as a result of changes in law in any jurisdiction where a Participant
resides, provided that the Plan Administrator shall be of the opinion that such amendments
and modifications will not be prejudicial to the interests of the Participants and Directors;
or |
| (e) | making
such changes or corrections which, on the advice of counsel to the Corporation, are required
for the purpose of curing or correcting any ambiguity or defect or inconsistent provision
or clerical omission or mistake or manifest error, provided that the Plan Administrator shall
be of the opinion that such changes or corrections will not be prejudicial to the rights
and interests of the Participants, |
12.3 | Amendments
Requiring Shareholder Approval |
Notwithstanding
anything to the contrary in this Plan, any amendment set out in section 10.12(7) of the NEO Exchange Listing Manual and any other amendment
which requires approval of the holders of voting shares of the Corporation under applicable Securities Laws or Exchange policies, shall
require approval of the holders of voting shares of the Corporation.
Article
13
MISCELLANEOUS
The
Corporation is not obligated to grant any Awards, issue any Shares or other securities, make any payments or take any other action if,
in the opinion of the Plan Administrator, in its sole discretion, such action would constitute a violation by a Participant or the Corporation
of any provision of any applicable statutory or regulatory enactment of any government or government agency or the requirements of any
Exchange upon which the Shares may then be listed.
No
amount will be paid to, or in respect of, a Participant under the Plan to compensate for a downward fluctuation in the price of a Share,
nor will any other form of benefit be conferred upon, or in respect of, a Participant for such purpose.
13.3 | Rights
of Participant |
No
Participant has any claim or right to be granted an Award and the granting of any Award is not to be construed as giving a Participant
a right to remain as an Employee, Consultant or Director. No Participant has any rights as a shareholder of the Corporation in respect
of Shares issuable pursuant to any Award until the allotment and issuance to such Participant, or as such Participant may direct, of
certificates representing such Shares.
Nothing
contained in this Plan or in an Award shall be construed so as to prevent the Corporation from taking corporate action which is deemed
by the Corporation to be appropriate or in its best interest, whether or not such action would have an adverse effect on this Plan or
any Award.
13.5 | Priority
of Agreements |
| (a) | In
the event of any inconsistency or conflict between the provisions of a Participant’s
Award Agreement and the Plan, the provisions of the Plan shall prevail with respect to such
Participant. In the event of any inconsistency or conflict between the provisions of (i)
the Plan and/or a Participant’s Award Agreement, and (ii) a Participant’s Service
Agreement, the provisions of the Participant’s Service Agreement shall prevail with
respect to such Participant unless the terms of the Participant’s Service Agreement
would either (i) cause a violation of Section 409A of the Code in respect of a U.S. Taxpayer
or (ii) cause the Plan to be a “salary deferral arrangement” as defined in the
Tax Act in respect of a Participant that is a Canadian Taxpayer, in which case the terms
of the Plan shall prevail. |
| (b) | In
the event that a Participant’s Service Agreement contains provisions respecting the
vesting of the dates upon which any or all outstanding Awards shall be exercisable or settled,
without regard to whether such Awards have otherwise vested in accordance with their terms,
or provisions respecting the expiry, forfeiture and termination of such Awards, the vesting
or expiry, forfeiture and termination of such Awards, as applicable, shall be governed by
the terms and conditions of the Participant’s Service Agreement with respect to such
Participant. |
By
accepting an Award each Participant acknowledges that he or she is restricted from purchasing financial instruments such as prepaid variable
forward contracts, equity swaps, collars, or units of exchange funds that are designed to hedge or offset a decrease in market value
of Awards.
13.7 | Participant
Information |
Each
Participant shall provide the Corporation with all information (including personal information) required by the Corporation in order
to administer the Plan. Each Participant acknowledges that information required by the Corporation in order to administer the Plan may
be disclosed to any custodian appointed in respect of the Plan and other third parties, and may be disclosed to such persons (including
persons located in jurisdictions other than the Participant’s jurisdiction of residence), in connection with the administration
of the Plan. Each Participant consents to such disclosure and authorizes the Corporation to make such disclosure on the Participant’s
behalf.
13.8 | Participation
in the Plan |
The
participation of any Participant in the Plan is entirely voluntary and not obligatory and shall not be interpreted as conferring upon
such Participant any rights or privileges other than those rights and privileges expressly provided in the Plan. In particular, participation
in the Plan does not constitute a condition of employment or engagement nor a commitment on the part of the Corporation to ensure the
continued employment or engagement of such Participant. The Plan does not provide any guarantee against any loss which may result from
fluctuations in the market value of the Shares. The Corporation does not assume responsibility for the income or other tax consequences
for the Participants and Directors and they are advised to consult with their own tax advisors.
13.9 | International
Participants |
With
respect to Participants who reside or work outside Canada and the United States, the Plan Administrator may, in its sole discretion,
amend, or otherwise modify, without shareholder approval, the terms of the Plan or Awards with respect to such Participants in order
to conform such terms with the provisions of local law, and the Plan Administrator may, where appropriate, establish one or more sub-plans
to reflect such amended or otherwise modified provisions.
13.10 | Successors
and Assigns |
The
Plan shall be binding on all successors and assigns of the Corporation and its subsidiaries.
13.11 | General
Restrictions or Assignment |
Except
as required by law, the rights of a Participant under the Plan are not capable of being assigned, transferred, alienated, sold, encumbered,
pledged, mortgaged or charged and are not capable of being subject to attachment or legal process for the payment of any debts or obligations
of the Participant unless otherwise approved by the Plan Administrator.
The
invalidity or unenforceability of any provision of the Plan shall not affect the validity or enforceability of any other provision and
any invalid or unenforceable provision shall be severed from the Plan.
| (a) | All
written notices to be given by a Participant to the Corporation shall be delivered personally,
e-mail or mail, postage prepaid, addressed as follows: |
Verses
Technologies Inc.
c/o
1500 – 409 Granville Street
Vancouver,
BC, Canada, V6C 1T2
Email:
sd@octaviancapital.ca
Attention:
Plan Administrator
| (b) | All
notices to a Participant will be addressed to the principal address of the Participant on
file with the Corporation. Either the Corporation or the Participant may designate a different
address by written notice to the other. Such notices are deemed to be received, if delivered
personally or by e-mail, on the date of delivery, and if sent by mail, on the fifth Business
Day following the date of mailing. Any notice given by either the Participant or the Corporation
is not binding on the recipient thereof until received. |
This
Plan becomes effective on a date to be determined by the Plan Administrator, subject to the approval of the shareholders of the Corporation.
This
Plan and all matters to which reference is made herein shall be governed by and interpreted in accordance with the laws of the Province
of British Columbia and the federal laws of Canada applicable therein, without any reference to conflicts of law rules.
13.16 | Submission
to Jurisdiction |
The
Corporation and each Participant irrevocably submits to the exclusive jurisdiction of the courts of competent jurisdiction in the Province
of British Columbia in respect of any action or proceeding relating in any way to the Plan, including, without limitation, with respect
to the grant of Awards and any issuance of Shares made in accordance with the Plan.
Schedule
A
Verses
Technologies Inc.
OMNIBUS
EQUITY INCENTIVE PLAN (THE “PLAN”)
ELECTION
NOTICE
All
capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Plan.
Pursuant
to the Plan, I hereby elect to participate in the grant of DSUs pursuant to Article 7 of the Plan and to receive % of my Cash Fees in
the form of DSUs.
If
I am a U.S. Taxpayer, I hereby further elect for any DSUs subject to this Election Notice to be settled on the later of (i) my “separation
from service” (within the meaning of Section 409A) or (ii) ______________________________.
I
confirm that:
| (a) | I
have received and reviewed a copy of the terms of the Plan and agreed to be bound by them. |
| (b) | I
recognize that when DSUs credited pursuant to this election are redeemed in accordance with
the terms of the Plan, income tax and other withholdings as required will arise at that time.
Upon redemption of the DSUs, the Corporation will make all appropriate withholdings as required
by law at that time. |
| (c) | The
value of DSUs is based on the value of the Shares of the Corporation and therefore is not
guaranteed. |
| (d) | To
the extent I am a U.S. taxpayer, I understand that this election is irrevocable for the calendar
year to which it applies and that any revocation or termination of this election after the
expiration of the election period will not take effect until the first day of the calendar
year following the year in which I file the revocation or termination notice with the Corporation. |
The
foregoing is only a brief outline of certain key provisions of the Plan. For more complete information, reference should be made to the
Plan’s text.
Date:
|
|
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(Signature
of Participant) |
|
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|
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|
(Name
of Participant) |
Schedule
B
Verses
Technologies Inc.
OMNIBUS
EQUITY INCENTIVE PLAN (THE “PLAN”)
ELECTION
TO TERMINATE RECEIPT OF ADDITIONAL DSUs
All
capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Plan.
Notwithstanding
my previous election in the form of Schedule A to the Plan, I hereby elect that no portion of the Cash Fees accrued after the date hereof
shall be paid in DSUs in accordance with Article 7 of the Plan.
I
understand that the DSUs already granted under the Plan cannot be redeemed except in accordance with the Plan.
I
confirm that I have received and reviewed a copy of the terms of the Plan and agree to be bound by them.
Date:
|
|
|
|
|
|
|
(Signature
of Participant) |
|
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|
|
|
|
|
(Name
of Participant) |
Note: | An
election to terminate receipt of additional DSUs can only be made by a Participant once in
a calendar year. |
Schedule
C
Verses
Technologies Inc.
OMNIBUS
EQUITY INCENTIVE PLAN (THE “PLAN”)
ELECTION
TO TERMINATE RECEIPT OF ADDITIONAL DSUs
(U.S.
TAXPAYERS)
All
capitalized terms used herein but not otherwise defined shall have the meanings ascribed to them in the Plan.
Notwithstanding
my previous election in the form of Schedule A to the Plan, I hereby elect that no portion of the Cash Fees accrued after the effective
date of this termination notice shall be paid in DSUs in accordance with Article 5 of the Plan.
I
understand that this election to terminate receipt of additional DSUs will not take effect until the first day of the calendar year following
the year in which I file this termination notice with the Corporation.
I
understand that the DSUs already granted under the Plan cannot be redeemed except in accordance with the Plan.
I
confirm that I have received and reviewed a copy of the terms of the Plan and agree to be bound by them.
Date:
|
|
|
|
|
|
|
(Signature
of Participant) |
|
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|
|
|
(Name
of Participant) |
Note: | An
election to terminate receipt of additional DSUs can only be made by a Participant once in
a calendar year. |
Schedule
D
Verses
Technologies Inc.
OMNIBUS
EQUITY INCENTIVE PLAN (THE “PLAN”)
FORM
OF SUBSIDIARY STOCK OPTION PLAN
Attached.
Schedule
E
Verses
Technologies Inc.
OMNIBUS
EQUITY INCENTIVE PLAN (THE “PLAN”)
California
Supplement
Pursuant
to Section 3.1(g) of the Plan, the Corporation has adopted this California Supplement (the “California Supplement”),
to the Plan for purposes of making grants of Options to any Participants who are California residents. All terms used but not defined
herein shall have the meaning set forth in the Plan. Any Option granted under the Plan to a Participant who is a resident of the State
of California on the date of grant (a “California Participant”) shall be subject to the following additional limitations,
terms and conditions:
1. | Additional
Limitations on Options. |
| a. | Maximum
Duration of Options. No Options granted to California Participants shall have a term
in excess of 10 years measured from the Option grant date. |
| b. | Minimum
Exercise Period Following Termination. Unless a California Participant’s employment
is terminated for Cause, in the event of termination of employment of such Participant, such
Participant shall have the right to exercise an Option, to the extent that such Participant
is entitled to exercise such Option on the date employment terminated, until the later of
(i) the date set forth in the applicable Option Agreement (or Section 9.2 of the Plan, if
Option Agreement does not contain a different date), or (ii) the earlier of: (1) the six
(6) month anniversary from the date of termination, if termination was caused by such Participant’s
death or Disability, (2) the thirty (30) day anniversary of the date of termination, if termination
was caused other than by such Participant’s death or disability and (3) the Expiry
Date of such Option. |
2. | Additional
Limitations for Other Share-Based Awards. The terms of all Options granted to a California
Participant shall comply, to the extent applicable, with Sections 260.140.42, 260.140.45
and 260.140.46 of the California Code of Regulations. |
3. | Additional
Limitations on Timing of Awards. No Option granted to a California Participant shall
become exercisable, vested or realizable, as applicable to such Option, unless the Plan has
been approved by the holders of a majority of the Corporation’s outstanding voting
securities by the later of (i) within twelve (12) months before or after the date the Plan
was adopted by the Board, or (ii) prior to or within twelve (12) months of the granting of
any Option to a California Participant. |
4. | Additional
Restriction Regarding Recapitalizations, Stock Splits, Etc. For purposes of the Plan,
in the event of a stock split, reverse stock split, stock dividend, recapitalization, combination,
reclassification or other distribution of the Corporation’s securities underlying the
Option without the receipt of consideration by the Corporation, the number of securities
available for subscription, and in the case of Options, the Exercise Price of such Options,
must be proportionately adjusted. |
5. | Additional
Limitations on Transferability of Awards. Notwithstanding anything to the contrary in
the Plan, an Option granted to a California Participant may not be transferred to an executor
or guardian upon the Disability of the Participant. |
Exhibit
5.1
|
|
DuMoulin
Black LLP
15th Floor,
1111 West Hastings Vancouver, BC, V6E 2J3
Canada
www.dumoulinblack.com
Telephone
No. (604) 687-1224 |
File
No. 5777-001
December
13, 2024
VIA
ELECTRONIC MAIL
VERSES
AI Inc.
205
- 810 Quayside Drive
New
Westminster, British Columbia
Canada
V3M 6B9
Dear
Sirs/Mesdames:
Re: | Registration
Statement on Form S-8 for VERSES AI Inc. (the “Company”) |
You
have requested our opinion with respect to certain matters in connection with the filing by the “Company”, of a Registration
Statement on Form S-8 (the “Registration Statement”) under the Securities Act of 1933, as amended (the “Securities
Act”), with the U.S. Securities and Exchange Commission (the “Commission”), covering 43,735,313 of the Company’s
Subordinate Class A Voting shares (the “Class A Shares”), which may be issued pursuant to the Company’s Omnibus
Equity Incentive Plan (the “Plan”).
This
opinion is being furnished in accordance with the requirements of Item 8 of Form S-8 and Item 601(b)(5)(i) of Regulation S-K.
For
the purposes of our opinion below, we have relied solely on the Registration Statement, the Company’s Articles as in effect on
the date hereof, the resolutions adopted by the board of directors of the Company with respect to the authorization and adoption of the
Plan, which resolutions we have assumed will be in full force and effect, unamended, at all relevant times and with respect to certain
factual matters, we relied solely and without further investigation on a certificate of an officer of the Company dated the date hereof.
Whenever
our opinion refers to Class A Shares, whether issued or to be issued, as being “fully paid and non-assessable”, such
opinion indicates that the holder of such Class A Shares will not be liable to contribute any further amounts to the Company by virtue
of its status as a holder of such shares, either in order to complete payment for the Class A Shares or to generally satisfy claims of
creditors of the Company. No opinion is expressed as to actual receipt by the Company of the consideration for the issuance of such Class
A Shares or as to the adequacy of any consideration received.
In
connection with this opinion, we have examined such documents or photostatic copies of such documents, caused to be made such searches
and investigations and considered such questions of law as we have considered relevant or necessary for the purpose of this opinion.
In our examination, we have assumed the genuineness of all signatures, the legal capacity at all relevant times of any individual signing
such documents, the authenticity and completeness of all documents submitted to us as originals, the conformity to authentic original
documents of all documents submitted to us as certified or photostatic copies or facsimiles (including scanned copies provided by email),
and the authenticity of the originals of such certified or photostatic copies or facsimiles and the truth and accuracy of all corporate
records of the Company and certificates of officers provided to us by the Company.
We
are solicitors qualified to practice law in the Province of British Columbia only and we express no opinion as to the laws of any jurisdiction,
or as to any matters governed by the laws of any jurisdiction, other than the laws of the Province of British Columbia and the laws of
Canada applicable therein. The opinion herein is based on the laws of the Province of British Columbia and the laws of Canada applicable
therein in effect on the date hereof.
Based
on and subject to the foregoing, we are of the opinion that all Class A Shares issuable pursuant to the provisions of the Plan will,
upon exercise or redemption (as the case may be) of incentive awards in accordance with the provisions of the Plan and any applicable
agreements, receipt by the Company of the requisite consideration therefor and the passing of all necessary corporate resolutions, be
validly issued as fully paid and non-assessable Class A Shares in the capital of the Company.
The
above opinion is rendered solely to you in connection with the filing of the Registration Statement and may not be used, circulated,
quoted from or otherwise referred to for any other purpose and may not be relied upon by any other person without our prior written consent.
We
consent to the filing of this opinion as Exhibit 5.1 to the Registration Statement. In giving such consent, we do not thereby admit that
we are included in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations
of the Commission promulgated thereunder.
Yours
truly,
/s/
DuMoulin Black LLP
Exhibit
23.1
Consent
of Independent Registered Public Accounting Firm
We
hereby consent to reference to our firm and the incorporation by reference in this Registration Statement on Form S-8 of Verses AI Inc.
of our report dated July 2, 2024, relating to the consolidated financial statements of Verses AI Inc. and its subsidiaries (the “Company”)
for the years ended March 31, 2024 and 2023 which appears in Exhibit 4.2 of Amendment No. 1 to the Company’s Registration Statement
on Form F-10.
/s/
Smythe LLP
Chartered
Professional Accountants
Vancouver,
Canada
December
13, 2024
Exhibit
107
Calculation
of Filing Fee Tables
Form
S-8
(Form
Type)
VERSES
AI INC.
(Exact
Name of Registrant as Specified in its Charter)
Table
1: Newly Registered Securities
Security
Type | |
Security
Class Title | |
Fee
Calculation Rule (1) | |
Amount
Registered (2) | | |
Proposed
Maximum Offering Price Per Share | | |
Maximum
Aggregate Offering Price | | |
Fee
Rate | | |
Amount
of Registration Fee | |
Equity | |
Class A Subordinate
Voting share, no par value | |
Other | |
| 43,735,313 | | |
$ | 0.3050 | (1) | |
$ | 13,339,271 | | |
$ | 0.000153 | | |
$ | 2,040.91 | |
Total
Offering Amounts |
| | | |
$ | 13,339,271 | | |
| | | |
$ | 2,040.91 | |
Total
Fee Offsets |
| | | |
| | | |
| | | |
| – | |
Net
Fee Due |
| | | |
| | | |
| | | |
$ | 2,040.91 | |
(1) |
Estimated solely
for purposes of calculating the registration fee pursuant to Rules 457(c) and 457(h) of the Securities Act of 1933, as amended (the
“Securities Act”), based upon the last sale of the Registrant’s Class A Subordinate Voting share, no par value
on December 10, 2024 as reported OTC Markets, which date is within five business days prior to the filing of this Registration Statement. |
(2) |
Pursuant
to Rule 416(a) of the Securities Act, this Registration Statement shall also cover any additional Common Shares of the Registrant
that become issuable under the Registrant’s Long Term Incentive Plan by reason of any stock dividend, stock split, recapitalization
or other similar transaction that increases the number of outstanding Common Shares. In addition,
pursuant to Rule 416(c) under the Securities Act, this Registration Statement shall also cover an indeterminate amount of interests
to be offered or sold pursuant to the employee benefit plans described herein.
|
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