Common use of The Action Clause in Contracts

The Action. On February 22, 2019, a proposed class action was commenced on behalf of investors who purchased FSD class B common shares in the secondary market during the Class Period, against FSD in the Ontario Superior Court: Xxxx Xxxxxx v. FSD Pharma, Inc. CV-19-614981-00CP (the " Action"). The Plaintiff in the Action alleges that the Defendant made misrepresentations during the Class Period related to FSD’s business, operations and finances by omitting from core documents, non-core documents and statements, material facts regarding the status of its project with Auxly Cannabis Corp. to build-out 220,000 square feet of cannabis cultivation space in Cobourg, Ontario. The parties have reached a proposed settlement of the Action, without an admission of liability on the part of t he Defendant, subject to approval by the Court. The terms of the proposed settlement are set out below. THE TERMS OF THE PROPOSED SETTLEMENT: FSD will pay CAD $5.5 million (the “Settlement Amount”), in full and final settlement of all claims against it in the Action. The Settlement Amount, less the lawyers’ fees and disbursements, administrator’s expenses, and taxes (the “Net Settlement Amount”), if approved by the Court, will be distributed to the Class in accordance with the court-approved Plan of Allocation. The Settlement Agreement may be viewed at xxxxx://xxxxxxxxxx.xxx/fsd-pharma-inc/ or at xxx.xxxxxxxxxxxxxxxxxxxxxxxx.xxx. If the Settlement is approved, a further notice will be published which will include instructions on how Class Members can file Claim Forms to participate in the distribution of the Net Settlement Amount and the deadline for doing so. The Settlement provides that if it is approved by the Court, the claims of all Class Members which were asserted or which could have been asserted in the Action (except any putative Class Members who opt-out) will be fully and finally released and the Action will be dismissed.

The Action. On February 22, 2019In 2008, a proposed class action was commenced on behalf of investors who purchased FSD class B common shares in the secondary market Ontario Superior Court of Justice (the “Court”) against CIBC and certain of its officers (the “Individual Defendants”, the “Action”). The Action alleged that, during the Class Period, against FSD CIBC misrepresented or failed to disclose in the Ontario Superior Court: Xxxx Xxxxxx v. FSD Pharmacertain quarterly financial statements and MD&A, Inc. CV-19public oral statements and filings with securities regulators, material information relating to CIBC’s investments in and exposure to United States residential mortgage-614981-00CP backed securities (the " Action"“US RMBS”). The Plaintiff in the Action alleges alleged that the Defendant made misrepresentations these public oral statements and filings with securities regulators by CIBC during the Class Period related contained statements that were false or materially misleading. It was alleged that CIBC’s own common shares therefore traded at artificially inflated prices during the Class Period, resulting in damage to FSD’s businessClass Members when information relating to those alleged misrepresentations was publicly disclosed. CIBC and the Individual Defendants denied all allegations. By order dated February 3, operations and finances by omitting from core documents2014, non-core documents and statements, material facts regarding the status Court of its project Appeal for Ontario granted the Plaintiffs leave to proceed with Auxly Cannabis Corp. to build-out 220,000 square feet of cannabis cultivation space in Cobourg, Ontario. The parties have reached a proposed settlement the Action under Part XXIII.1 of the ActionOntario Securities Act and certified the Action as a class proceeding on behalf of the Class Members. By order of the Ontario Superior Court of Justice dated September 13, without an admission 2016, Class Members were afforded the right to exclude themselves or “opt out” of liability on the part of t he DefendantClass by no later than January 3, 2017. Persons who validly exercised the right to opt out are not Class Members, are not affected by this notice and may not participate in the Settlement. Since then, the Action has been vigorously litigated. On •, the Plaintiffs and CIBC executed a Settlement Agreement providing for the settlement the Action (the “Settlement”), which is subject to approval by the Court. The terms Settlement Agreement provides for the payment of the proposed settlement are set out below. THE TERMS OF THE PROPOSED SETTLEMENT: FSD will pay CAD $5.5 million CAD$125,000,000.00 (the “Settlement Amount”), ) in consideration of the full and final settlement of all the claims against it in the Actionof Class Members. The Settlement AmountAmount includes all legal fees, less the lawyers’ fees and disbursements, administrator’s taxes, administration expenses, and taxes (the “Net Settlement Amount”), if approved by the Court, will be distributed levy payable to the Class in accordance with the court-approved Plan of Allocation. The Settlement Agreement may be viewed at xxxxx://xxxxxxxxxx.xxx/fsd-pharma-inc/ or at xxx.xxxxxxxxxxxxxxxxxxxxxxxx.xxx. If the Settlement is approved, a further notice will be published which will include instructions on how Class Members can file Claim Forms to participate in the distribution Proceedings Fund of the Net Settlement Amount and the deadline for doing soOntario Law Foundation. The Settlement provides that if it is approved by the Court, the claims of all Class Members which were asserted or which could have been asserted in the Action (except any putative Class Members who opt-out) will be fully and finally released and the Action will be dismissed. The Settlement is not an admission of liability, wrongdoing or fault on the part of the Defendants, all of whom have denied, and continue to deny, the allegations against them.

The Action. On February 22, 2019, a proposed class action was commenced on behalf of investors who purchased FSD class B common shares in the secondary market during the Class Period, against FSD in the Ontario Superior Court: Xxxx Xxxxxx v. FSD Pharma, Inc. CV-19-614981-00CP (the " Action"). The Plaintiff in the Action alleges that the Defendant made misrepresentations during the Class Period related to FSD’s business, operations and finances by omitting from core documents, non-core documents and statements, material facts regarding the status of its project with Auxly Cannabis Corp. to build-out 220,000 square feet of cannabis cultivation space in Cobourg, Ontario. The parties have reached a proposed settlement of the Action, without an admission of liability on the part of t he the Defendant, subject to approval by the Court. The terms of the proposed settlement are set out below. THE TERMS OF THE PROPOSED SETTLEMENT: FSD will pay CAD $5.5 million (the “Settlement Amount”), in full and final settlement of all claims against it in the Action. The Settlement Amount, less the lawyers’ fees and disbursements, administrator’s expenses, and taxes (the “Net Settlement Amount”), if approved by the Court, will be distributed to the Class in accordance with the court-approved Plan of Allocationon a pro rata basis. The Settlement Agreement may be viewed at xxxxx://xxxxxxxxxx.xxx/fsd-pharma-inc/ xxxxx://xxxxxxxxxx.xxx/fsd-pharma-inc/, xxx.xxxxxxxxxxxxxxxxxxxxxxxx.xxx, or at xxx.xxxxxxxxxxxxxxxxxxxxxxxx.xxxin the investor relations section of xxxxx://xxx.xxxxxxxxx.xxx. If the Settlement is approved, a further notice will be published which will include instructions on how Class Members can file Claim Forms to participate in the pro rata distribution of the Net Settlement Amount and the deadline for doing so. The Settlement provides that if it is approved by the Court, the claims of all Class Members which were asserted or which could have been asserted in the Action (except any putative Class Members who opt-out) will be fully and finally released and the Action will be dismissed.

The Action. On February 22, 2019, a proposed class action was commenced on behalf of investors who purchased FSD class B common shares in the secondary market during the Class Period, against FSD in the Ontario Superior Court: Xxxx Xxxxxx v. FSD Pharma, Inc. CV-19-614981-00CP (the " Action"). The Plaintiff in the Action alleges that the Defendant made misrepresentations during the Class Period related to FSD’s 's business, operations and finances by omitting from core documents, non-core documents and statements, material facts regarding the status of its project with Auxly Cannabis Corp. to build-out 220,000 square feet of cannabis cultivation space in Cobourg, Ontario. The parties have reached a proposed settlement of the Action, without an admission of liability on the part of t he the Defendant, subject to approval by the Court. The terms of the proposed settlement are set out below. THE TERMS OF THE PROPOSED SETTLEMENT: FSD will pay CAD $5.5 million (the “Settlement Amount”), in full and final settlement of all claims against it in the Action. The Settlement Amount, less the lawyers’ ' fees and disbursements, administrator’s 's expenses, and taxes (the “Net Settlement Amount”), if approved by the Court, will be distributed to the Class in accordance with the court-approved Plan of Allocation. The Settlement Agreement may be viewed at xxxxx://xxxxxxxxxx.xxx/fsd-pharma-inc/ or at xxx.xxxxxxxxxxxxxxxxxxxxxxxx.xxx. If the Settlement is approved, a further notice will be published which will include instructions on how Class Members can file Claim Forms to participate in the distribution of the Net Settlement Amount and the deadline for doing so. The Settlement provides that if it is approved by the Court, the claims of all Class Members which were asserted or which could have been asserted in the Action (except any putative Class Members who opt-out) will be fully and finally released and the Action will be dismissed.