# EDGAR Filing Document

**Accession Number:** 0001711141
**File Stem:** 0001641172-25-025591
**Filing Date:** 2025-8
**Character Count:** 2574854
**Document Hash:** 345bb696ec7be7a39ab834824cd471bb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001641172-25-025591.hdr.sgml**: 20250826

**ACCESSION NUMBER**: 0001641172-25-025591

**CONFORMED SUBMISSION TYPE**: S-1

**PUBLIC DOCUMENT COUNT**: 206

**FILED AS OF DATE**: 20250826

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Leef Brands Inc.
- **CENTRAL INDEX KEY:** 0001711141

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** A1
- **FISCAL YEAR END:** 0731

**FILING VALUES:**
- **FORM TYPE:** S-1
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-289872
- **FILM NUMBER:** 251259356

**BUSINESS ADDRESS:**
- **STREET 1:** SUITE 1500, 1055 WEST GEORGIA ST.
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6E 4N7
- **BUSINESS PHONE:** 4083079366

**MAIL ADDRESS:**
- **STREET 1:** SUITE 1500, 1055 WEST GEORGIA ST.
- **CITY:** VANCOUVER
- **STATE:** A1
- **ZIP:** V6E 4N7

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Icanic Brands Co Inc.
- **DATE OF NAME CHANGE:** 20210507

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** INTEGRATED CANNABIS COMPANY, INC.
- **DATE OF NAME CHANGE:** 20190909

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** CNRP MINING INC.
- **DATE OF NAME CHANGE:** 20190820

?xml version='1.0' encoding='ASCII'?

**As filed with the Securities and Exchange Commission on August 26, 2025.**

**Registration Number xxx-xxxxxx**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-1**

**REGISTRATION STATEMENT**

*UNDER*

*THE SECURITIES ACT OF 1933*

**Leef Brands, Inc.**

(Exact Name of Registrant as Specified in its Charter)

---

| | | |
|:---|:---|:---|
| **British Columbia** | **2833** | **98-1653633** |
| (State or other jurisdiction of<br> incorporation or<br> organization) | (Primary Standard Industrial<br> Classification Code<br> Number) | (I.R.S. Employer Identification<br> Number) |

---

**Suite 2500 Park Place**

**666 Burrard Street**

**Vancouver, BC V6C 2X8, Canada**

**(416) 797-6455**

(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

**Micah Anderson**

**Chief Executive Officer**

**Leef Brands, Inc.**

**Suite 2500 Park Place**

**666 Burrard Street**

**Vancouver, BC V6C 2X8, Canada**

**(416) 797-6455**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

*Copies to:*

---

| |
|:---|
| **Jason R. Wisniewski, Esq.** |
| **Ferguson Braswell Fraser Kubasta PC** |
| **5 Park Plaza** |
| **Irvine, CA 92614** |
| **(949) 468-3200** |

---

**Approximate date of commencement of proposed sale to public: As soon as practicable after the effective date of this registration statement.**

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large, accelerated filer, an accelerated filer, a non-accelerated filer, 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:

Larger accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> 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. ☐

**The registrant hereby amends this registration statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to Section 8(a), may determine**.

**The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell, nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.**

**SUBJECT TO COMPLETION, DATED AUGUST 26, 2025**

**PRELIMINARY PROSPECTUS**

**Leef Brands, Inc.**

**x,xxx,xxx Shares of Common Stock**

This prospectus relates to the proposed resale by the selling security holders named in this prospectus or their permitted assigns of up to ______________ shares of our common stock, $0.00 par value per share, or common stock, which amount consists of (i) _____________ shares of common stock outstanding as of the date of this prospectus, and (ii) an aggregate of ________________ shares of common stock issuable upon exercise of common stock purchase warrants, or the Purchase Warrants, issued in connection with private placements of our common stock to certain of our selling security holders.

We are not selling any shares of common stock under this prospectus and will not receive any proceeds from the sale of shares of common stock by the selling security holders. Upon the cash exercise of the Purchase Warrants, we will receive the exercise price of such warrants for an aggregate of approximately $_____________. The selling security holders will bear all commissions and discounts, if any, attributable to the sale of the shares of common stock. We will bear all costs, expenses and fees in connection with the registration of the shares of common stock.

The selling security holders will offer and sell the shares at a fixed price of $x.xx per share until our common stock is listed on an established public trading market. For additional information regarding the methods of sale, refer to the section entitled 'Plan of Distribution' on page 64, and for a list of the selling security holders, you should refer to the section of this prospectus entitled "Selling Security Holders" on page 62.

We may amend or supplement this prospectus from time to time by filing amendments or supplements as required. You should read the entire prospectus and any amendments or supplements carefully before you make your investment decision.

**We are an "emerging growth company" as that term is used in the Jumpstart Our Business Startups Act of 2012 and we have elected to adopt certain reduced public company reporting requirements.**

Our common stock is quoted on The OTC Market Group, Inc.'s Pink Current Information tier, or the OTC, under the symbol "LEEEF". The last reported price of our common stock on August 18, 2025, was $0.17 per share.

**Investing in our shares of common stock involves a high degree of risk. See "Risk Factors" beginning on page 7 of this prospectus.**

**NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.**

The date of this prospectus is August 19, 2025.

---

| | |
|:---|:---|
| [PROSPECTUS SUMMARY](#ak_001) | 1 |
| [RISK FACTORS](#ak_004) | 7 |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#ak_005) | 28 |
| [USE OF PROCEEDS](#ak_006) | 29 |
| [DIVIDEND POLICY](#ak_007) | 29 |
| [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#ak_008) | 32 |
| [MANAGEMENT](#ak_009) | 49 |
| [EXECUTIVE COMPENSATION](#ss_001) | 52 |
| [SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT](#ss_002) | 56 |
| [MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS](#ss_003) | 58 |
| [SELLING SECURITY HOLDERS](#ss_004) | 62 |
| [PLAN OF DISTRIBUTION](#ss_005) | 64 |
| [LEGAL MATTERS](#ss_006) | 65 |
| [EXPERTS](#ss_007) | 65 |
| [WHERE YOU CAN FIND MORE INFORMATION](#ss_008) | 65 |
| [INDEX TO FINANCIAL STATEMENTS](#Aa_001) | F-1 |

---

i

**ABOUT THIS PROSPECTUS**

You should rely only on the information contained in or incorporated by reference in this prospectus. We have not authorized any person to provide you with different or inconsistent information. If anyone provides you with different or inconsistent information, you should not rely on it. This is not an offer to sell or seeking an offer to buy these securities in any jurisdiction where the offer or sale is not permitted. You should assume that the information appearing in this prospectus and the documents incorporated by reference is accurate only as of their respective dates. Our business, financial condition, results of operations and prospects may have changed since such dates.

We further note that the representations, warranties and covenants made by us in any document that is filed as an exhibit to the registration statement of which this prospectus is a part and in any document that is incorporated by reference herein were made solely for the benefit of the parties to such agreement, including, in some cases, for the purpose of allocating risk among the parties to such agreements, and should not be deemed to be a representation, warranty or covenant to you. Moreover, such representations, warranties or covenants were accurate only as of the date when made. Accordingly, such representations, warranties and covenants should not be relied on as accurately representing the current state of our affairs.

ii

**NOTE REGARDING INDUSTRY AND MARKET DATA**

Within this prospectus, we reference information and statistics regarding the cannabis industry, and the cannabis marketplace. We have obtained this information and statistics from various independent third-party sources, including independent industry publications and groups, reports by market research firms and other independent sources. Some data and other information contained in this prospectus are also based on our estimates and calculations, which are derived from our review and interpretation of internal company research, surveys and independent sources. Data regarding the industries in which we compete or expect to compete in the future and our market position and market share within this industry are inherently imprecise and are subject to significant business, economic and competitive uncertainties beyond our control, but we believe such data generally indicate size, position and market share within these industries in which we compete or expect to compete in the future. While we believe our internal company research, surveys and estimates are reliable, such research, surveys and estimates are subject to significant uncertainties. In addition, assumptions and estimates of our and our industry's future performance are necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in "Risk Factors." These and other factors could cause our future performance to differ materially from our assumptions and estimates. See "Cautionary Note Regarding Forward-Looking Statements." As a result, you should be aware that market, ranking and other similar industry data included in this prospectus, and estimates and beliefs based on that data, may not be reliable. We cannot guarantee the accuracy or completeness of any such information contained in this prospectus.

**NOTE REGARDING TRADEMARKS, TRADENAMES AND SERVICE MARKS**

We own or have rights to use the trademarks, service marks and trade names that we use in conjunction with the operation of our businesses. Some of the more important trademarks that we own or have rights to use that appear in this prospectus include logos, attached below.

![](forms-1_001.jpg)

![](forms-1_002.jpg)

![](forms-1_003.jpg)

![](forms-1_004.jpg)

![](forms-1_005.jpg)

![](forms-1_006.jpg)

iii

**PROSPECTUS SUMMARY**

*This summary highlights selected information included elsewhere in this prospectus and does not contain all of the information you should consider before buying shares of our common stock. You should read the entire prospectus carefully, especially the "Risk Factors" section and financial and the related notes appearing at the end of this prospectus before deciding to invest in shares of our common stock. Some of the statements in this prospectus constitute forward-looking statements. See "Cautionary Note Regarding Forward-Looking Statements." Unless the context requires otherwise, references in this prospectus to "our company," "we," "us" and "our" refer to Leef Brands, Inc., a British Columbia corporation, and its subsidiaries noted herein..*

**Our Company**

Leef Brands, Inc. (Formerly Icanic Brands Company Inc.) was incorporated on September 15, 2011, under the laws of the province of British Columbia and is registered extra-provincially under the laws of Ontario. The Company is a cannabis branded products manufacturer based in California. LEEF is a public company whose common shares are listed for trading on the Canadian Securities Exchange ("CSE") under the symbol "LEEF".

On April 20, 2022, the Company acquired all of the common stock of LEEF Holdings, Inc. ("LEEF"). LEEF is a leading cannabis extraction company located in the state of California and provides bulk concentrate to cannabis brands in the state of California. LEEF's manufacturing capabilities include a 12,000 square foot extraction and manufacturing facility with significant throughput and distillate extraction capability. Core manufacturing competencies include ethanol extraction (Type 6 manufacturing license), hydrocarbon extraction (Type 7 manufacturing license), and solventless extraction. LEEF received a 186.7 acre cultivation land use permit, which will result in it owning one of the largest cannabis cultivation site in the state of California.

**Our Business**

LEEF is a vertically integrated cannabis extraction and manufacturing operator based in California. With cutting-edge processing facilities and a large-scale cultivation strategy, LEEF supports both B2B partnerships and brand-driven concentrate supply.

Since acquiring a 1,900-acre "trophy" property in Santa Barbara County in 2023, LEEF has built a vertically integrated cannabis platform spanning cultivation, extraction, and manufacturing. LEEF's initial 65 acres of cultivation planted in 2025 on Salisbury Canyon Ranch mark a pivotal shift—allowing LEEF to grow its own biomass and reduce input costs by an estimated 40–60%; full-scale cultivation is anticipated to reach 187 acres by 2027.

On the extraction front, the Company operates state-of-the-art closed-loop facilities capable of producing more than 1 million lbs of concentrates annually. In early 2025, it executed expansions across all three extraction lines—ethanol (+66%), solventless (+50%), and hydrocarbon (+38%)—boosting overall capacity and positioning LEEF as a key supplier in California's $4.2 billion legal cannabis market, with presence in nearly half of product categories.

LEEF's revenue model centers on bulk B2B concentrate supply, powering major brands across California while forging white-label agreements and partnerships with over 250 farms. This operational foundation has yielded growing revenues and margins since inception.

The Company has taken a strategic focus to strengthen its balance sheet through private placements to support extraction scalability and ranch deployment . The independent valuation of Salisbury Canyon Ranch at approximately $40 million—nearly double the Company's market cap—highlights the tangible value underlying its operations.

In becoming a vertically integrated cannabis enterprise, we now own our own cultivation operation, continue to operate advanced extraction facilities, and focus on our largest revenue stream of B2B concentrate sales. With cost-efficient cultivation, growing throughput, strong financial performance, and considerable asset value, LEEF is well-positioned to capitalize on scaling opportunities across California and beyond.

**Industry Background**

The legal cannabis industry emerged as a response to growing public support for medical and adult-use legalization, along with recognition of its economic potential. The transition from prohibition to regulation has occurred in phases, primarily through state-level reforms. Medical Cannabis is legal in over 35 U.S. states and dozens of countries, starting with California's Prop 215 (1996). Adult-Use (Recreational) is legal in 24+ U.S. states, Canada (2018), Germany (2024), and several LATAM and African nations. Cannabis remains a Schedule I drug under federal law, creating challenges for banking, taxation (280E), and interstate commerce. Rescheduling & SAFE Banking legislation are under consideration, which may accelerate investment and infrastructure growth.

The historical challenges and risks lie in banking, taxation (280E), and interstate commerce being limited. There is regulatory inconsistency and a patchwork of laws across states and countries. The market is facing oversupply and price compression, particularly in mature markets like California and Oregon. There still remains an illicit market competition, which is persisting due to price advantages and limited enforcement. Further the industry has seen capital constraints with public cannabis companies often facing underperformance and funding challenges.

Management believes that the best way to capture this growing market is by aggressively expanding our operations through organic growth, increased multi-state operations, and acquisition. Opportunities lie with future rescheduling to unlock institutional investment and interstate trade, consolidation of the market with M&A and distressed asset acquisitions offering growth paths for strong operators, and demand for low-impact growing methods and traceable supply chains by utilizing sustainability and technology.

**Our Competitive Strengths**

Our competitive edge in the legal cannabis industry focuses on the Company blending powerful vertical integration, advanced extraction capability, and strategic multi-state growth with savvy cost management. Further our B2B-oriented approach, tech adoption, and undervalued market position make us a strong contender in the cannabis extraction and concentrate space.

Using our cultivation-to-extract model through direct ownership and operation of our 1,900-acre ranch with plans, dramatically cuts biomass costs and boosts margins, giving full supply-chain control. As mentioned later in this prospectus, our strategic cultivation partnerships bring experts to assist with growing and focus on quality as it relates to our extraction business.

Our cultivation process feeds directly into our market leading extraction capacity and technology. We have multi-platform extraction and a closed loop design. With cutting edge innovations, we enhance efficiency and reduce the amount of volume prior to extraction and preserve potency.

**Our Growth and Marketing Strategy**

Our leaders have a shared vision for success. Our management team is among the most diverse and impressive in the industry, bringing years of real-world experience, keen insight, and a shared vision to LEEF. We've brought together best-in-class cannabis product development talent with experience in multiple legal jurisdictions and an operations team with 25+ years of experience scaling cannabis manufacturing businesses.

Focusing on vertical integration through cultivation assets with our Salisbury Canyon Ranch will produce its own biomass—cutting raw material costs by an estimated 40–65% and boosting margin control. Further cultivation partnerships and collaboration with cultivation expertise ensures high-quality supply and operational efficiency. The ownership of the supply chain helps stabilize prices, reduce dependency on external suppliers, and enhance cost control providing strategic payoff.

The elements of our growth strategy start with our commitment to continuous capital reinvestment into our Company, its subsidiaries and our strategic industry partners. We lead by example and set the pace for our industry in order to attract the leading cannabis brands to join us as stakeholders. This is the core that allows stakeholder's growth in growing markets

By emphasizing supply reliability, product consistency, and thought leadership, LEEF strengthens its brand equity within the industry. With continued focus on capital strategy and supporting sustainable expansion we can mitigate dilution and leverage digital assets. This can further position the Company to methodically scaling extraction and cultivation capacity to tighten margin controls and fuel revenue growth.

The Company combines vertical integration, production scaling, strategic partnerships, disciplined finance, and market positioning into a coherent growth strategy. It's engineered to thrive as a foundational extraction partner and become a Coast to Coast MSO powerhouse.

**Risks Associated with Our Business**

Our business is subject to numerous risks, which are more fully described in the section entitled "Risk Factors" beginning on page 7 of this prospectus. You should read these risks before you invest in our common stock. We may be unable, for many reasons, including those that are beyond our control, to implement our business strategy.

As a result of these risks and other risks described under "Risk Factors," there is no guarantee that we will experience growth or profitability in the future.

**Recent Developments**

There are several trends that provide opportunities and risks for the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Growing demand from health-conscious individuals, Gen Z, and older adults for low-dose, non-smoking formats (e.g., edibles, tinctures, topicals). Nearly half of U.S. adults now use cannabis; consumption among aging adults is rising. There are risks associated with emerging studies showing increased cardiovascular risks—even from non-smoking forms—prompting calls for health warnings and tighter regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The mergers and acquisitions market offers growth potential for larger, well-financed firms. As midsize players exit, scale becomes essential. On the contrary, oversupply and saturation in mature markets (e.g., California) is compressing prices—retail prices have fallen ~32% since 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Premium, rigorously tested products that guarantee safety (pesticide-free, accurate dosage) can command higher margins, and consumer trust provide manufacturers such as our Company a unique opportunity in an overly saturated market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Potential rescheduling ("Schedule III") and SAFE Banking Act progress may unlock better financial access and insurance products. Until then, cannabis businesses operate in a cash-heavy environment and face high insurance premiums, limited coverage, and complex regulation.

**Our Corporate Information**

The Company was founded as Leef Holdings in July 2018 in La Jolla, California. On April 20, 2022, the Company effectively merged with Icanic Brands, Inc, a publicly listed Canadian company and began operating as Leef Brands, Inc., a British Columbia Corporation.

Our principal executive offices are located at Suite 2500 Park Place, 666 Burrard Street Vancouver, BC V6C 2X8, Canada. Our telephone number is 416-797-6455. Our Internet website address is www.leefbrands.com. The information contained on, or that can be accessed through, our website is not a part of this prospectus. We have included our website address in this prospectus solely as an inactive textual reference.

**Implications of Being an Emerging Growth Company and a Smaller Reporting Company**

We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012. We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of this offering, (b) in which we have total annual gross revenue of at least $1.07 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our shares of common stock that are held by non-affiliates exceeds $700 million as of the prior June 30th, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. We refer to the Jumpstart Our Business Startups Act of 2012 in this prospectus as the "JOBS Act," and references in this prospectus to "emerging growth company" shall have the meaning associated with it in the JOBS Act.

As an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies. These provisions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●reduced disclosure about our executive compensation arrangements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●no requirement that we hold non-binding advisory votes on executive compensation or golden parachute arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting.

We have elected to adopt certain reduced disclosure requirements for purposes of the registration statement of which this prospectus is a part. In addition, for so long as we qualify as an emerging growth company, we expect to take advantage of certain of the reduced reporting and other requirements of the JOBS Act with respect to the periodic reports we will file with the Securities and Exchange Commission, or SEC, and proxy statements that we use to solicit proxies from our stockholders. As a result, the information contained in this prospectus and in our periodic reports and proxy statements may be different than the information provided by other public companies.

In addition, the JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This allows an emerging growth company to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates for new or revised accounting standards.

For certain risks related to our status as an emerging growth company, see the section titled "Risk Factors—Risks Related to Our Common Stock and this Offering —We are an "emerging growth company," and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our shares of common stock less attractive to investors."

We are also a "smaller reporting company," meaning that the market value of our stock held by non-affiliates plus the proposed aggregate amount of gross proceeds to us as a result of this offering is less than $700.0 million and our annual revenue is less than $100.0 million during the most recently completed fiscal year. We may continue to be a smaller reporting company after this offering if either (i) the market value of our stock held by non-affiliates is less than $250.0 million or (ii) our annual revenue is less than $100.0 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700.0 million. If we are a smaller reporting company at the time we cease to be an emerging growth company, we may continue to rely on exemptions from certain disclosure requirements that are available to smaller reporting companies. Specifically, as a smaller reporting company we may choose to present only the two most recent fiscal years of audited financial statements in our Annual Report on Form 10-K and, similar to emerging growth companies, smaller reporting companies have reduced disclosure obligations regarding executive compensation.

**The Offering**

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| | |
|:---|:---|
| Securities offered by the selling security holders: | _________ shares of common stock. |
| Common stock outstanding prior to this offering: | <br> 175,750,130 shares, as of August 13, 2025. |
| Common stock to be outstanding after this offering: | ____________ shares, which gives effect to the shares of common stock offered under this prospectus. |
| OTC symbol: | LEEEF |
| Use of Proceeds: | We will not receive any of the proceeds from the sale of the shares of common stock being offered under this prospectus. However, upon the cash exercise of the Purchase Warrants for an aggregate of _________ shares of common stock, we will receive the exercise price of the Purchase Warrants, or an aggregate of approximately $__________. See "Use of Proceeds." |
| Risk Factors: | There are many risks related to our business, this offering and ownership of the shares of common stock that you should consider before you decide to buy the shares of common stock in this offering. You should read the "Risk Factors" section beginning on page 7, as well as other cautionary statements throughout this prospectus, before investing the shares of common stock. |

---

The number of shares of common stock that will be outstanding upon the completion of this offering is based on the 175,750,130 shares outstanding as of August 13, 2025, and excludes the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●_____________ shares of common stock issuable upon the exercise of outstanding stock warrants as of ________, 2025, with a weighted-average exercise price of $_______ per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●any additional shares of common stock we may issue from time to time after that date.

Unless otherwise indicated, all information in this prospectus assumes no exercise of outstanding options and warrants.

**RISK FACTORS**

*Investing in shares of our common stock involves a high degree of risk. You should carefully consider the risks described below, together with the other information contained in this prospectus, including our financial statements and the related notes thereto appearing at the end of this prospectus, before making your decision to invest in shares of our common stock. We cannot assure you that any of the events discussed in the risk factors below will not occur. These risks could have a material and adverse impact on our business, results of operations, financial condition or prospects. If that were to happen, the trading price of our common stock could decline, and you could lose all or part of your investment.*

*This prospectus also contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including the risks faced by us described below and elsewhere in this prospectus. See "Cautionary Note Regarding Forward-Looking Statements" for information relating to these forward-looking statements.*

**Risks Related to Our Financial Condition and Need for Additional Capital**

***We have incurred net losses and cannot assure you that we will achieve or maintain profitable operations.***

Our net loss was $24.6 million for the year ended December 31, 2024, and $34.6 million for the year ended December 31, 2023. We may continue to incur significant losses in the future for a number of reasons, including unforeseen expenses, difficulties, complications, delays and other unknown events.

We anticipate that our operating expenses will increase substantially in the foreseeable future as we undertake increased development and production efforts to support our business and increase our marketing and sales efforts to drive an increase in the number of our product offerings and an increase in customers purchasing our products and services. These expenditures may make it more difficult to achieve and maintain profitability. In addition, our efforts to grow our business may be more expensive than we expect, and we may not be able to generate sufficient revenue to offset increased operating expenses. If we are forced to reduce our expenses, our growth strategy could be compromised. To offset these anticipated increased operating expenses, we will need to generate and sustain significant revenue levels in future periods in order to become profitable, and, even if we do, we may not be able to maintain or increase our level of profitability.

Accordingly, we cannot assure you that we will achieve sustainable operating profits as we continue to expand our infrastructure, further develop our marketing efforts, and otherwise implement our growth initiatives. Any failure to achieve and maintain profitability would have a materially adverse effect on our ability to implement our business plan, our results and operations, and our financial condition, and could cause the value of our common stock, to decline, resulting in a significant or complete loss of your investment.

***We may need to raise additional capital to fund new products and further expand our existing operations.***

Based on our current business plan, we believe our current cash, cash equivalents and marketable securities may be sufficient to meet our anticipated cash requirements over at least the next 12 months If our available cash balances and anticipated cash flow from operations are insufficient to satisfy our liquidity requirements, we may seek to sell common or preferred equity or convertible debt securities, enter into a credit facility or another form of third-party funding, or seek other debt financing.

We may consider raising additional capital in the future to further expand our business, to pursue strategic investments, to take advantage of financing opportunities, or for other reasons. We expect that we will need additional liquidity and capital resources through debt and/or equity financings to fulfill our anticipated future product development efforts and product backlog. We may not be able to obtain adequate financing in a timely manner, on commercially reasonable terms or at all. Our failure to raise sufficient capital in a timely manner will restrict our growth and hinder our ability to compete. Our failure to obtain timely and adequate capital could have a material adverse effect on our business, financial condition and results of operations.

No assurances can be given that we will be successful in obtaining additional financing in the future. Any future financing that we may obtain may cause significant dilution to existing stockholders. Any debt financing or other financing of securities senior to our common stock that we are able to obtain will likely include financial and other covenants that will restrict our flexibility. At a minimum, we expect these covenants to include restrictions on our ability to pay dividends on our common stock. Any failure to comply with these covenants would have a material adverse effect on our business, prospects, financial condition, results of operations and cash flows.

If adequate funds are not available, we may be required to delay, scale back or eliminate portions of our operations and product development efforts or to obtain funds through arrangements with strategic partners or others that may require us to relinquish rights to certain of our technologies or potential products or other assets. Accordingly, the inability to obtain such financing could result in a significant loss of ownership and/or control of our proprietary technology and other important assets and could also adversely affect our ability to fund our continued operations and our development efforts and adversely affect our business.

**Risks Related to Our Common Stock and This Offering**

***The price of our shares of common stock has been, and is likely to be, volatile, and you could lose all or part of your investment.***

The trading price of our shares of common stock has been, and is likely to be, volatile and could be subject to wide fluctuations in response to various factors, some of which are beyond our control, including limited trading volume. In addition to the factors discussed in the "Risk Factors" section and elsewhere in this prospectus, these factors include, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●competition from existing technologies and products or new technologies and products that may emerge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the loss of customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●actual or anticipated variations in our quarterly operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●failure to meet the estimates and projections of the investment community or that we may otherwise provide to the public;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our cash position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●announcement or expectation of additional financing efforts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●issuances of debt or equity securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our inability to successfully enter new markets or develop additional products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●actual or anticipated fluctuations in our competitors' operating results or changes in their respective growth rates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●sales of our shares of common stock by us, or our stockholders, in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●trading volume of our shares of common stock on the OTC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●market conditions in our industries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●overall performance of the equity markets and general political and economic conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●introduction of new products or services by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●additions or departures of key management, scientific or other personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●publication of research reports about us or our industry or positive or negative recommendations or withdrawal of research coverage by securities or industry analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●changes in the market valuation of similar companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●disputes or other developments related to intellectual property and other proprietary rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●changes in accounting practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●significant lawsuits, including stockholder litigation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●other events or factors, many of which are beyond our control.

Furthermore, the public equity markets have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies, including ours. These fluctuations often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes or international currency fluctuations, may negatively impact the market price of our shares of common stock. As a result, you may not realize any return on your investment in us and may lose some or all of your investment.

***There is a limited trading market for our common stock.***

Although our common stock is listed on the CSE and quoted on the OTC, the OTC is an unorganized, inter-dealer, over-the-counter market which provides significantly less liquidity than The Nasdaq Capital Market or other national securities exchanges. This may have an adverse impact on the trading and price of our common stock. The CSE also provides significantly less liquidity than other U.S. national securities exchanges.

***We do not anticipate paying cash dividends, and accordingly, stockholders must rely on stock appreciation for any return on their investment.***

We have never declared or paid cash dividends on our capital stock. We intend to retain a significant portion of our future earnings, if any, to finance the operations, development and growth of our business. Any future determination to declare dividends will be made at the discretion of our board of directors, subject to applicable laws, and will depend on number of factors, including our financial condition, results of operations, capital requirements, contractual restrictions, general business conditions and other factors that our board of directors may deem relevant. As a result, only appreciation of the price of our common stock, which may never occur, will provide a return to stockholders.

***If securities or industry analysts do not publish research or reports or publish inaccurate or unfavorable research or reports about our business, our share price and trading volume could decline.***

The trading market for our shares of common stock depends, in part, on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts. If no securities or industry analysts commence coverage of our company, the trading price for our shares of common stock may be negatively impacted. If we obtain securities or industry analyst coverage and if one or more of the analysts who covers us downgrades our shares of common stock, changes their opinion of our shares or publishes inaccurate or unfavorable research about our business, our share price would likely decline. If one or more of these analysts ceases coverage of us or fails to publish reports on us regularly, demand for our shares of common stock could decrease and we could lose visibility in the financial markets, which could cause our share price and trading volume to decline.

***We are an "emerging growth company," and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our shares of common stock less attractive to investors.***

We are an "emerging growth company," as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in this prospectus, our periodic reports and proxy statements and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier, including if the market value of our shares of common stock held by non-affiliates exceeds $700 million as of any June 30 before that time or if we have total annual gross revenue of $1.07 billion or more during any fiscal year before that time, in which cases we would no longer be an emerging growth company as of the following December 31, or if we issue more than $1.0 billion in non-convertible debt during any three-year period before that time, in which case we would no longer be an emerging growth company immediately. We cannot predict if investors will find our shares of common stock less attractive because we may rely on these exemptions. If some investors find our shares of common stock less attractive as a result, there may be a less active trading market for our shares of common stock and our share price may be more volatile.

Under the JOBS Act, emerging growth companies also can delay adopting new or revised accounting standards until such time as those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates for new or revised accounting standards.

***Raising additional capital, including through future sales and issuances of our common stock, or warrants could result in additional dilution of the percentage ownership of our stockholders, could cause our share price to fall and could restrict our operations.***

We expect that significant additional capital will be needed in the future to continue our planned operations, including any potential acquisitions, hiring new personnel and continuing activities as an operating public company. To the extent we seek additional capital through a combination of public and private equity offerings and debt financings, our stockholders may experience substantial dilution. To the extent that we raise additional capital through the sale of equity or convertible debt securities, the ownership interest of our existing stockholders may be diluted, and the terms may include liquidation or other preferences that adversely affect the rights of our stockholders. Debt and receivables financings may be coupled with an equity component, such as warrants to purchase shares of our common stock, which could also result in dilution of our existing stockholders' ownership. The incurrence of indebtedness would result in increased fixed payment obligations and could also result in certain restrictive covenants, such as limitations on our ability to incur additional debt and other operating restrictions that could adversely impact our ability to conduct our business. A failure to obtain adequate funds may cause us to curtail certain operational activities, including sales and marketing, in order to reduce costs and sustain the business, and would have a material adverse effect on our business and financial condition.

***Our issuance of preferred shares could adversely affect the market value of our common shares.***

Our board of directors has the authority to cause us to issue, without any further vote or action by the shareholders, preferred shares in one or more series, designate the number of shares constituting any series, and to fix the rights, preferences, privileges and restrictions of any such series of preferred shares, including dividend rights, voting rights, rights and terms of redemption, redemption price or prices and liquidation preferences of such series subject to the special rights and restrictions set out in our articles, including the limitation that holders of preferred shares shall not, as such, have any right to vote at a general meeting of the Company.

The issuance of shares of preferred shares with dividend or conversion rights, liquidation preferences or other economic terms favorable to the holders of preferred shares could adversely affect the market price for our common shares by making an investment in the common shares less attractive. For example, investors in the common shares may not wish to purchase common shares at a price above the conversion price of a series of convertible preferred shares because the holders of the preferred shares would effectively be entitled to purchase common shares at the lower conversion price causing economic dilution to the holders of common shares.

***Indemnification of our officers and directors may result in substantial expenditures by us.***

Our articles require us to indemnify our directors and officers to the fullest extent permitted by British Columbia law. We have entered into indemnification agreements with our directors and officers to provide such indemnification rights. This limitation does not affect the availability of equitable remedies, such as injunctive relief or rescission. Under British Columbia law, we may indemnify our directors or officers or other persons who were, are or are threatened to be made a named defendant or respondent in a proceeding because the person is or was our director, officer, employee or agent, if we determine that the person: (a) conducted himself or herself in good faith, reasonably believed, in the case of conduct in his or her official capacity as our director or officer, that his or her conduct was in our best interests, and, in all other cases, that his or her conduct was at least not opposed to our best interests; and (b) in the case of any criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

These persons may be indemnified against expenses, including attorneys' fees, judgments, fines, excise taxes and amounts paid in settlement, actually and reasonably incurred by the person in connection with the proceeding. If the person is found liable to the corporation, no indemnification will be made unless the court in which the action was brought determines that the person is fairly and reasonably entitled to indemnity in an amount that the court will establish. The foregoing indemnification obligations could result in us incurring substantial expenditures to cover the cost of settlement or damage awards against directors and officers, which we may be unable to recoup. These provisions and the resulting costs may also discourage us from bringing a lawsuit against directors and officers for breaches of their fiduciary duties and may similarly discourage the filing of derivative litigation by our shareholders against our directors and officers even though such actions, if successful, might otherwise benefit us and our shareholders.

***Our reporting obligations will be limited under Section 15(d) of the Exchange Act, which may result in reduced transparency for investors.***

We do not intend to register our common stock under Section 12(g) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). As a result, we will not be subject to the ongoing reporting requirements applicable to issuers with securities registered under Section 12 of the Exchange Act, including the comprehensive disclosure, proxy solicitation, and beneficial ownership reporting obligations that apply to Exchange Act reporting companies. Instead, we will only be required to comply with the limited reporting obligations under Section 15(d) of the Exchange Act.

Under Section 15(d), we will be required to file periodic reports, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, as long as our reporting obligations remain active. However, unlike a company registered under Section 12, we will not be subject to certain key requirements of the Exchange Act, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●**Proxy Rules:** We will not be subject to the proxy solicitation rules under Section 14 of the Exchange Act, which means we will not be required to provide stockholders with proxy statements for annual or special meetings of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●**Beneficial Ownership Reporting:** We will not be subject to the insider reporting and short-swing profit rules under Section 16 of the Exchange Act, which require officers, directors, and significant shareholders (greater than 10%) to report their holdings and transactions in our stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●**Stock Exchange and Market Compliance:** Since our stock is not registered under Section 12(g), we will not be required to maintain certain corporate governance and disclosure requirements that may otherwise apply to companies with listed securities on a national securities exchange.

Additionally, our obligation to file reports under Section 15(d) may be automatically suspended for any fiscal year if, at the beginning of such year, we have fewer than 300 shareholders of record. If our reporting obligations are suspended, we may cease filing periodic reports, significantly reducing the amount of public information available about our company.

Because of these limited reporting obligations, investors may have less information about our financial condition and business operations compared to companies that are fully registered under Section 12 of the Exchange Act. This reduced level of disclosure could impact investor confidence and the liquidity of our common stock."

**Risks Related to the Industry and the Company's Business**

*Cannabis continues to be a controlled substance under the CSA.*

 

In addition to federal regulation, cannabis is also regulated at the state level in the United States. To the Company's knowledge, there are to date a total of [47] states, plus the District of Columbia, Puerto Rico and Guam that have legalized or decriminalized cannabis in some form (including hemp). Notwithstanding the permissive regulatory environment of cannabis at the state level, cannabis and THC continue to be categorized as controlled substances under the CSA and as such, violate federal law in the United States.

The United States Congress has passed appropriations bills each of the last three years that have not appropriated funds for prosecution of cannabis offenses of individuals who are in compliance with state medical cannabis laws. American courts have construed these appropriations bills to prevent the U.S. federal government from prosecuting individuals when those individuals comply with state law relating to approved medical uses. However, because this conduct continues to violate U.S. federal law, American courts have observed that should Congress at any time choose to appropriate funds to fully prosecute the CSA, any individual or business - even those that have fully complied with state law - could be prosecuted for violations of U.S. federal law. And if Congress restores funding, the government will have the authority to prosecute individuals for violations of the law that took place before received funding under the CSA's five-year statute of limitations.

Violations of any U.S. federal laws and regulations could result in significant fines, penalties, administrative sanctions, convictions or settlements arising from civil proceedings conducted by either the U.S. federal government or private citizens, or criminal charges, including, but not limited to, disgorgement of profits, cessation of business activities or divestiture. This could have a material adverse effect on the Company, including its reputation and ability to conduct business, its holding (directly or indirectly) of cannabis licenses in the United States, its financial position, operating results, profitability or liquidity or the market price of its Common Shares. In addition, it is difficult to estimate the time or resources that would be needed for the investigation of any such matters or its final resolution because, in part, the time and resources that may be needed are dependent on the nature and extent of any information requested by the applicable authorities involved, and such time or resources could be substantial.

*The approach to the enforcement of Regulated Cannabis laws may be subject to change or may not proceed as previously outlined.*

 

As a result of the conflicting views between states and the federal government regarding cannabis, investments in Regulated Cannabis businesses in the United States are subject to inconsistent legislation and regulation. The response to this inconsistency was addressed on August 29, 2013 when then Deputy Attorney General, James Cole, authored the 2013 Cole Memorandum addressed to all United States district attorneys acknowledging that notwithstanding the designation of cannabis as a controlled substance at the federal level in the United States, several U.S. states have enacted laws relating to cannabis for medical purposes.

The 2013 Cole Memorandum outlined certain priorities for the DOJ relating to the prosecution of cannabis offenses. In particular, the 2013 Cole Memorandum noted that in jurisdictions that have enacted laws legalizing cannabis in some form and that have also implemented strong and effective regulatory and enforcement systems to control the cultivation, distribution, sale and possession of Regulated Cannabis, conduct in compliance with those laws and regulations is less likely to be a priority at the federal level. Notably, however, the DOJ has never provided specific guidelines for what regulatory and enforcement systems it deems sufficient under the 2013 Cole Memorandum standard.

In light of limited investigative and prosecutorial resources, the 2013 Cole Memorandum concluded that the DOJ should be focused on addressing only the most significant threats related to cannabis. States where Medical-Use Cannabis had been legalized were not characterized as a high priority. In March 2017, then newly appointed Attorney General Jeff Sessions again noted limited federal resources and acknowledged that much of the 2013 Cole Memorandum had merit; however, he disagreed that it had been implemented effectively and, on January 4, 2018, Attorney General Jeff Sessions authored the Sessions Memorandum, which rescinded all "previous nationwide guidance specific to marijuana enforcement," including the 2013 Cole Memorandum. The Sessions Memorandum rescinded previous nationwide guidance specific to the prosecutorial authority of United States attorneys relative to cannabis enforcement on the basis that they are unnecessary, given the well-established principles governing federal prosecution that are already in place. Those principals are included in chapter 9.27.000 of the United States Attorneys' Manual and require federal prosecutors deciding which cases to prosecute to weigh all relevant considerations, including federal law enforcement priorities set by the Attorney General, the seriousness of the crime, the deterrent effect of criminal prosecution, and the cumulative impact of particular crimes on the community.

As a result of the Sessions Memorandum, federal prosecutors will now be free to utilize their prosecutorial discretion to decide whether to prosecute cannabis activities despite the existence of state-level laws that may be inconsistent with federal prohibitions. No direction was given to federal prosecutors in the Sessions Memorandum as to the priority they should ascribe to such cannabis activities, and resultantly it is uncertain how active federal prosecutors will be in relation to such activities. Furthermore, the Sessions Memorandum did not discuss the treatment of Medical-Use Cannabis by federal prosecutors.

Former U.S. Attorney General Jeff Sessions resigned on November 7, 2018. Nonetheless, there is no guarantee that state laws legalizing and regulating the sale and use of cannabis will not be repealed or overturned, even under a Trump Administration's DOJ or that local governmental authorities will not limit the applicability of state laws within their respective jurisdictions. Unless and until the United States Congress amends the CSA with respect to cannabis and THC (and as to the timing or scope of any such potential amendments there can be no assurance), there is a risk that federal authorities may enforce current U.S. federal law.

*FDA rulemaking related to Medical-Use Cannabis and the possible registration of facilities where Medical-Use Cannabis is grown could negatively affect the Medical-Use Cannabis industry, which would directly affect our financial condition.*

 

Should the federal government legalize Medical-Use Cannabis, it is possible that the FDA would be tasked by Congress to regulate it under the FDCA. Additionally, the FDA may issue rules and regulations including current good manufacturing practices, or GMPs, related to the growth, cultivation, harvesting and processing of Medical-Use Cannabis. Clinical trials may be needed to verify efficacy and safety. It is also possible that the FDA would require that facilities where Medical-Use Cannabis is grown register with the FDA and comply with certain federal regulations. In the event that some or all of these regulations are imposed, we do not know what the impact would be on the Medical-Use Cannabis industry, including what costs, requirements and possible prohibitions may be enforced. If we are unable to comply with the regulations or registration as prescribed by the FDA, we may be unable to continue to operate our business in its current form or at all.

*U.S. state regulatory uncertainty may adversely impact the Company.*

 

There is no assurance that state laws legalizing and regulating the sale and use of cannabis will not be repealed, amended or overturned, or that local governmental authorities will not limit the applicability of state laws within their respective jurisdictions. If the U.S. federal government begins to enforce U.S. federal laws relating to cannabis in states where the sale and use of cannabis is currently legal, or if existing state laws are repealed or curtailed, the Company's business or operations in those states or under those laws would be materially and adversely affected. Federal actions against any individual or entity engaged in the cannabis industry, or a substantial repeal of cannabis related legislation could adversely affect the Company, its business and its assets or investments.

Certain U.S. states where medical and/or Adult-Use Cannabis is legal have or are considering special taxes or fees on the cannabis industry. It is uncertain at this time whether other states are in the process of reviewing such additional taxes and fees. The implementation of special taxes or fees could have a material adverse effect upon the businesses, results of operations and financial condition of the Company.

*The Company may be subject to applicable anti-money laundering laws and regulations.*

 

Given the nature of its business, the Company may be subject to a variety of laws and regulations in Canada and in the United States that involve money laundering, financial recordkeeping and proceeds of crime, including the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (USA PATRIOT Act), the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada), as amended and the rules and regulations thereunder, the Criminal Code (Canada) and any related or similar rules, regulations or guidelines, issued, administered or enforced by governmental authorities in the United States and Canada. Banks often refuse to provide banking services to businesses involved in the U.S. cannabis industry due to the present state of the laws and regulations governing financial institutions in the United States. The lack of banking and financial services presents unique and significant challenges to businesses in the cannabis industry. The potential lack of a secure place in which to deposit and store cash, the inability to pay creditors through the issuance of cheques and the inability to secure traditional forms of operational financing, such as lines of credit, are some of the many challenges presented by the unavailability of traditional banking and financial services.

In the event that any of the Company's operations, or any proceeds thereof, any dividends or distributions therefrom, or any profits or revenues accruing from such operations in the United States were found to be in violation of money laundering legislation or otherwise, such transactions may be viewed as proceeds of crime under one or more of the statutes noted above or any other applicable legislation. This could restrict or otherwise jeopardize the ability of the Company to declare or pay dividends, affect other distributions or subsequently repatriate such funds back to Canada. Furthermore, while there are no current intentions to declare or pay dividends on the Common Shares in the foreseeable future, in the event that a determination was made that the Company's proceeds from operations (or any future operations or investments in the United States) could reasonably be shown to constitute proceeds of crime, the Company may decide or be required to suspend declaring or paying dividends without advance notice and for an indefinite period of time.

*U.S. border officials could deny entry into the U.S. to employees of or investors in companies with cannabis operations in the United States.*

 

Because cannabis remains illegal under U.S. federal law, those non-U.S. citizens employed at or investing in legal and licensed cannabis companies could face detention, denial of entry or lifetime bans from the United States for their business associations with U.S. cannabis businesses. Entry of non-U.S. citizens happens at the sole discretion of the U.S. Customs and Border Protection ("CBP") officers on duty, and these officers have wide latitude to ask questions to determine the admissibility of a foreign national. The Government of Canada warns travelers on its website that previous use of cannabis, or any substance prohibited by U.S. federal laws, could mean denial of entry to the U.S. In addition, business or financial involvement in the legal cannabis industry in the United States could also be reason enough for U.S. border guards to deny entry. On September 21, 2018, CBP released a statement outlining its current position with respect to enforcement of the laws of the United States. It stated that CBP enforcement of United States laws regarding controlled substances has not changed and because cannabis continues to be a controlled substance under United States law, working in or facilitating the proliferation of the legal cannabis industry in U.S. states where it is deemed legal may affect admissibility to the U.S. As a result, CBP has affirmed that, a Canadian citizen coming to the U.S. for reasons related to the cannabis industry may be deemed inadmissible.

*The Company may have difficulty accessing the services of banks, which may make it difficult to operate its business.*

 

The Company may have trouble accessing services of financial institutions. For example, in February 2014, FinCEN issued the FinCEN Memorandum (which is not law) that provides guidance with respect to financial institutions providing banking services to cannabis business, including burdensome due diligence expectations and reporting requirements. This guidance does not provide any safe harbors or legal defenses from examination or regulatory or criminal enforcement actions by the DOJ, FinCEN or other federal regulators. Thus, most banks and other financial institutions in the United States do not appear to be comfortable providing banking services to cannabis-related businesses, or relying on this guidance, which can be amended or revoked at any time by the executive branch. In addition to the foregoing, banks may refuse to process debit card payments and credit card companies generally refuse to process credit card payments for cannabis-related businesses. As a result, the Company may have limited or no access to banking or other financial services in the United States. In addition, federal money laundering statutes and Bank Secrecy Act regulations discourage financial institutions from working with any organization that sells a controlled substance, regardless of whether the state it resides in permits cannabis sales.

Since the use of cannabis is illegal under U.S. federal law, and in light of concerns in the banking industry regarding money laundering and other federal financial crime related to cannabis, businesses involved in the cannabis industry often have difficulty finding a bank willing to accept their business. Likewise, cannabis businesses have limited access, if any, to credit card processing services. As a result, cannabis businesses in the United States are to a significant degree cash-based. This complicates the implementation of financial controls and increases security issues.

*The Company may have difficulty accessing public and private capital.*

 

The Company expects to access public capital markets by virtue of its status as a reporting issuer in certain of the provinces and territories of Canada. However, there can be no assurances that the Company will be able to successfully obtain sufficient financing through such capital markets and, further, capital market uncertainty and volatility could impact the Company's ability to obtain equity financing.

Commercial banks, private equity firms and venture capital firms have approached the cannabis industry cautiously to date. However, there are increasing numbers of high net worth individuals and family offices that have made meaningful investments in companies and businesses similar to the Company. Although there has been an increase in the amount of private financing available over the last several years, there is neither a broad nor deep pool of institutional capital that is available to cannabis license holders and license applicants. There can be no assurance that additional financing, if raised privately, will be available to the Company when needed or on terms which are acceptable to the Company. The Company's inability to raise financing to fund capital expenditures or acquisitions could limit its growth and may have a material adverse effect upon future profitability.

*The Company may lack access to U.S. bankruptcy protections.*

 

As discussed above, cannabis is illegal under U.S. federal law. Therefore, there is a compelling argument that the federal bankruptcy courts cannot provide relief for parties who engage in Regulated Cannabis businesses. Recent bankruptcy rulings have denied bankruptcies for dispensaries upon the justification that businesses cannot violate federal law and then claim the benefits of federal bankruptcy for the same activity and upon the justification that courts cannot ask a bankruptcy trustee to take possession of, and distribute Regulated Cannabis-related assets as such action would violate the CSA. Therefore, the Company may not be able to seek the protection of the bankruptcy courts and this could materially affect our business or our ability to obtain credit.

*The Company's operations in the U.S. cannabis market may be subject to heightened scrutiny by regulatory authorities.*

 

For the reasons set forth above, the Company's existing operations in the United States, and any future operations or investments, may become the subject of heightened scrutiny by securities regulators, stock exchanges and other authorities in Canada and the United States. As a result, the Company may be subject to significant direct and indirect interaction with public officials. There can be no assurance that this heightened scrutiny will not in turn lead to the imposition of certain restrictions on the Company's ability to invest or hold interests in other entities in the United States or any other jurisdiction, or have consequences for its stock exchange listing or Canadian reporting obligations, in addition to those described herein.

On February 8, 2018, the Canadian Securities Administrators published Staff Notice 51-352 describing the Canadian Securities Administrators' disclosure expectations for specific risks facing issuers with cannabis-related activities in the U.S. Staff Notice 51-352 confirms that a disclosure-based approach remains appropriate for issuers with U.S. cannabis-related activities. StaffNotice 51-352 includes additional disclosure expectations that apply to all issuers with U.S. cannabis-related activities, including those with direct and indirect involvement in the cultivation and distribution of cannabis, as well as issuers that provide goods and services to third parties involved in the U.S. cannabis industry.

CDS Clearing and Depositary Services Inc. ("CDS") is Canada's central securities depository, clearing and settling trades in the Canadian equity, fixed income and money markets. On February 8, 2018, following discussions with the Canadian Securities Administrators and recognized Canadian securities exchanges, the TMX Group, which is the owner and operator of CDS, announced the signing of a Memorandum of Understanding ("MOU") confirming that it relies on such exchanges to review the conduct of listed issuers. The MOU notes that securities regulation requires that the rules of each of the exchanges must not be contrary to the public interest and that the rules of each of the exchanges have been approved by the securities regulators. Pursuant to the MOU, CDS will not ban accepting deposits of or transactions for clearing and settlement of securities of issuers with cannabis-related activities in the United States.

*Transactions for clearing and settlement of securities of issuers with cannabis-related activities in the United States.*

 

Even though the MOU indicated that there are no plans of banning the settlement of securities of issuers with U.S. cannabis related activities through CDS, there can be no guarantee that the settlement of securities will continue in the future. If such a ban were to be implemented, it would have a material adverse effect on the ability of holders of Common Shares to make and settle trades. In particular, the Common Shares would become highly illiquid until an alternative (if available) was implemented, and investors would have no ability to effect a trade of the Common Shares through the facilities of a stock exchange.

*The Company may be subject to the risk of civil asset forfeiture.*

 

Because the cannabis industry remains illegal under U.S. federal law, any property owned by participants in the cannabis industry which are either used in the course of conducting such business, or are the proceeds of such business, could be subject to seizure by law enforcement and subsequent civil asset forfeiture. Even if the owner of the property was never charged with a crime, the property in question could still be seized and subject to an administrative proceeding by which, with minimal due process, it could be subject to forfeiture.

*The laws and regulations affecting the cannabis industry are constantly changing.*

 

The constant evolution of laws and regulations affecting the cannabis industry could detrimentally affect the Company. The current and proposed operations of the Company are subject to a variety of local, state and federal cannabis laws and regulations relating to the manufacture, management, transportation, storage and disposal of cannabis, as well as laws and regulations relating to consumable products health and safety, the conduct of operations and the protection of the environment. These laws and regulations are broad in scope and subject to evolving interpretations, which could require the Company to incur substantial costs associated with compliance or alter certain aspects of its business plans. In addition, violations of these laws, or allegations of such violations, could disrupt certain aspects of the business plans of the Company and result in a material adverse effect on certain aspects of their planned operations. These laws and regulations are rapidly evolving and subject to change with minimal notice. Regulatory changes may adversely affect the Company's profitability or cause it to cease operations entirely. The cannabis industry may come under the scrutiny or further scrutiny by the FDA, the SEC, the DOJ, the Financial Industry Regulatory Authority or other federal or applicable state or non-governmental regulatory authorities or self-regulatory organizations that supervise or regulate the production, distribution, sale or use of cannabis for medical or adult-use purposes in the United States. It is impossible to determine the extent of the impact of any new laws, regulations or initiatives that may be proposed, or whether any proposals will become law. The regulatory uncertainty surrounding the industry may adversely affect the business and operations of the Company, including without limitation, the costs to remain compliant with applicable laws and the impairment of its business or the ability to raise additional capital. In addition, the Company is not be able to predict the nature of any future laws, regulations, interpretations or applications, and it is possible that regulations may be enacted in the future that will be directly applicable to its business.

*The Company may be subject to the risks associated with governmental approvals, permits and compliance with applicable laws.*

 

Government approvals and permits are currently, and may in the future be, required in connection with the operations of the Company. To the extent such approvals are required and not obtained, the Company may be curtailed or prohibited from its production, manufacture, and sale of Medical-Use Cannabis and Adult-Use Cannabis or from proceeding with the development of its operations as currently proposed.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. The Company may be required to compensate those suffering loss or damage by reason of their operations and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations.

The Company may not be able to obtain or maintain the necessary licenses, permits, certificates, authorizations or accreditations to operate its businesses, or may only be able to do so at great cost. In addition, the Company may not be able to comply fully with the wide variety of laws and regulations applicable to the cannabis industry. Failure to comply with or to obtain the necessary licenses, permits, certificates, authorizations or accreditations could result in restrictions on the Company's ability to operate in the cannabis industry, which could have a material adverse effect on the business, results of operations and financial condition of the Company. Amendments to current laws, regulations and permits governing the production of medical and adult-use cannabis, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in expenses, capital expenditures or production costs, or reduction in levels of production, or require abandonment or delays in development.

*There may be a restriction on deduction of certain expenses.*

 

Section 280E of the United States Internal Revenue Code of 1986, as amended (the "Code") generally prohibits businesses from deducting or claiming tax credits with respect to expenses paid or incurred in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of Schedule I and II of the CSA) which is prohibited by U.S. federal law or the law of any state in which such trade or business is conducted. Section 280E currently applies to businesses operating in the cannabis industry, irrespective of whether such businesses are licensed and operating in accordance with applicable state laws. The application of Code Section 280E generally causes such businesses to pay higher effective U.S. federal income tax rates than similar businesses in other industries due to the loss of certain deductions and credits. The impact of Code Section 280E on the effective tax rate of a cannabis business generally depends on how large the ratio of non-deductible expenses is to the business's total revenues. The Company expects to be subject to Code Section 280E. The application of Code Section 280E to the Company may adversely affect the Company's profitability and, in fact, may cause the Company to operate at a loss. While recent legislative proposals, if enacted into law, could eliminate or diminish the application of Code Section 280E to cannabis businesses, the enactment of any such law is uncertain. Accordingly, Code Section 280E may continue to apply to the Company indefinitely.

*There may be difficulty with the enforceability of contracts.*

 

It is a fundamental principle of law that a contract will not be enforced if it involves a violation of law or public policy. Because cannabis remains illegal in the United States at a federal level, judges in multiple U.S. states have on a number of occasions refused to enforce contracts for the repayment of money when the loan was used in connection with activities that violate federal law, even if there is no violation of state law. It is possible that the Company may not be able to legally enforce contracts the Company enters into if necessary, which means there can be no assurance that there will be a remedy for breach of contract, which would have a material adverse effect on the Company's business, assets, revenues, operating results, financial condition and prospects. For example, at least some federal courts have dismissed lawsuits seeking to enforce contracts involving the purchase or sale of Regulated Cannabis businesses.

*The ability to grow a business with ties to cannabis operations in the United States depends on state laws pertaining to the cannabis industry.*

 

Continued development of the Regulated Cannabis industry depends upon continued legislative authorization of cannabis at the state level. The status quo of, or progress in, the Regulated Cannabis industry is not assured and any number of factors could slow or halt further progress in this area. While there may be ample public support for legislative action permitting the manufacture and use of cannabis, numerous factors impact the legislative process. For example, many states that voted to legalize Medical-Use Cannabis and/or Adult-Use Cannabis have seen significant delays in the drafting and implementation of regulations and issuance of licenses. In addition, burdensome regulation at the state level could slow or stop further development of the Regulated Cannabis industry, such as limiting the medical conditions for which medical cannabis can be recommended by physicians for treatment, restricting the form in which medical cannabis can be consumed, imposing significant registration requirements on physicians and patients or imposing significant taxes on the growth, processing and/or retail sales of cannabis, which could have the impact of dampening growth for cannabis businesses and making it difficult for cannabis businesses to operate profitably in those states. Any one of these factors could slow or halt additional legislative authorization of medical and/or recreational-use cannabis, which could adversely affect the Company's business prospects.

*Political uncertainty may have an adverse impact on the Company s operating performance and results of operations.*

 

General political uncertainty may have an adverse impact on the Company's operating performance and results of operations. In particular, the United States continues to experience significant political events that cast uncertainty on global financial and economic markets, especially in light of the recent presidential election. It is presently unclear exactly what actions the new administration in the United States will implement, and if implemented, how these actions may impact the cannabis industry in the United States. Any actions taken by the new United States administration may have a negative impact on the United States economies and on the businesses, financial conditions, results of operations and the valuation of United States cannabis companies, including the Company.

**Risks Related to the Company's Products and Services**

*Unfavorable publicity or consumer perception may affect the success of the Company s business.*

 

The legal cannabis industry in the U.S. is at an early stage of its development. Cannabis has been, and is expected to continue to be, a regulated substance for the foreseeable future. Consumer perceptions regarding legality, morality, consumption, safety, efficacy and quality of cannabis are mixed and evolving. Consumer perception can be significantly influenced by scientific research or findings, regulatory investigations, litigation, media attention and other publicity regarding the consumption of cannabis products. There can be no assurance that future scientific research, findings, regulatory proceedings, litigation, media attention or other research findings or publicity will be favorable to the cannabis market or any particular product, or consistent with earlier publicity. Future research reports, findings, regulatory proceedings, litigation, media attention or other publicity that are perceived as less favorable than, or that question earlier research reports, findings or publicity could have a material adverse effect on the demand for cannabis and on the business, results of operations, financial condition and cash flows of the Company. Further, adverse publicity, reports or other media attention regarding cannabis in general, or associating the consumption of cannabis with illness or other negative effects or events, could have such a material adverse effect.

Public opinion and support for Medical-Use Cannabis and Adult-Use Cannabis use has traditionally been inconsistent and varies from jurisdiction to jurisdiction. While public opinion and support appears to be rising for legalizing Medical-Use Cannabis and Adult-Use Cannabis, it remains a controversial issue subject to differing opinions surrounding the level of legalization (for example, medical cannabis as opposed to legalization in general).

The ability to gain and increase market acceptance of the Company's products may require the Company to establish and maintain its brand name and reputation. In order to do so, substantial expenditures on product development, strategic relationships and marketing initiatives may be required. There can be no assurance that these initiatives will be successful and their failure may have an adverse effect on the Company.

Further, a shift in public opinion may also result in a significant influence over the regulation of the cannabis industry in Canada, the United States or elsewhere. A negative shift in the perception of the public with respect to cannabis in the U.S. or any other applicable jurisdiction could affect future legislation or regulation. Among other things, such a shift could cause state jurisdictions to abandon initiatives or proposals to legalize Adult-Use Cannabis, thereby limiting the number of new state jurisdictions into which the Company could expand. Any inability to fully implement the Company's expansion strategy may have a material adverse effect on its business, financial condition and results of operations.

*Social media may impact the Company s reputation.*

 

The increased usage of social media and other web-based tools used to generate, publish and discuss user-generated content and to connect with other users has made it increasingly easier for individuals and groups to communicate and share opinions and views in regard to issuers and their activities, whether true or not and the cannabis industry in general, whether true or not. Negative posts or comments about the Company or its properties on any social networking website could damage the Company's reputation. In addition, employees or others might disclose non-public sensitive information relating to the Company's business through external media channels. The continuing evolution of social media will present the Company with new challenges and risks.

*Significant failure or deterioration of the Company's quality control systems may adversely impact the Company.*

 

The quality and safety of the Company's products are critical to the success of its business and operations. As such, it is imperative that the Company's quality control systems operate effectively and successfully. Quality control systems can be negatively impacted by the design of the quality control systems, the quality training program, and adherence by employees to quality control guidelines. Although the Company strives to ensure that it and any of its service providers have implemented and adhere to high caliber quality control systems, any significant failure or deterioration of such quality control systems could have a material adverse effect on the Company's business, financial condition, results of operations or prospects.

*Service providers could suspend or withdraw service, which could adversely affect the Company s business.*

 

As a result of any adverse change to the approach in enforcement of U.S. cannabis laws, adverse regulatory or political changes, additional scrutiny by regulatory authorities, adverse changes in the public perception in respect of the consumption of cannabis or otherwise, third-party service providers to the Company could suspend or withdraw their services, which may have a material adverse effect on the business, revenues, operating results, financial condition or prospects of the Company.

*The Company may be subject to product liability claims.*

 

The Company manufactures, processes and/or distributes products designed to be ingested by humans, and therefore faces an inherent risk of exposure to product liability claims, regulatory action and litigation if products are alleged to have caused significant loss or injury. In addition, the manufacture and sale of cannabis products involve the risk of injury to consumers due to tampering by unauthorized third parties or product contamination. Previously unknown adverse reactions resulting from human consumption of cannabis products alone or in combination with other medications or substances could occur. The Company may be subject to various product liability claims, including, among others, that the products produced by them caused injury or illness, include inadequate instructions for use, or include inadequate warnings concerning possible side effects or interactions with other substances. A product liability claim, or regulatory action could result in increased costs, could adversely affect the reputation of the Company and could have a material adverse effect on the business, results of operations and financial condition of the Company. There can be no assurances that product liability insurance will be obtained or maintained on acceptable terms or with adequate coverage against potential liabilities.

*The Company may be subject to product recalls.*

 

Cultivators, manufacturers and distributors of products are sometimes subject to the recall or return of their products for a variety of reasons, including product defects, such as contamination, unintended harmful side effects or interactions with other substances, packaging safety and inadequate or inaccurate labeling disclosure. If any of the products produced by the Company are recalled due to an alleged product defect or for any other reason, the Company could be required to incur the unexpected expense of the recall and any legal proceedings that might arise in connection with the recall and may lose a significant amount of sales and may not be able to replace those sales at an acceptable margin or at all. Additionally, if one of the products produced by the Company were subject to recall, the image of that product and the Company could be harmed. A recall for any of the foregoing reasons could lead to decreased demand for products produced by the Company and could have a material adverse effect on the business, results of operations and financial condition of the Company.

*The Company is subject to risks inherent in an agricultural business.*

 

Medical-Use Cannabis and Adult-Use Cannabis is an agricultural product. There are risks inherent in the cultivation business, such as insects, plant diseases and similar agricultural risks. Although the products are usually grown indoors or in green houses under climate-controlled conditions, with conditions monitored, there can be no assurance that natural elements will not have a material adverse effect on the production of the Company's products and, consequentially, on the business, financial condition and operating results of the Company.

*The Company may be vulnerable to rising energy costs.*

 

Cannabis growing operations consume considerable energy, making the Company potentially vulnerable to rising energy costs. Rising or volatile energy costs may adversely impact the business, results of operations, financial condition or prospects of the Company.

*The Company is reliant on key inputs.*

 

The cannabis business is dependent on a number of key inputs and their related costs including raw materials and supplies related to growing operations, as well as electricity, water and other local utilities. Any significant interruption or negative change in the availability or economics of the supply chain for key inputs could materially impact the business, financial condition, results of operations or prospects of the Company. In this regard, California, where all of our growing operations are located, is currently experiencing a drought and may experience droughts in the future, which may increase our costs and adversely affect our growing operations. Some of these inputs may only be available from a single supplier or a limited group of suppliers. If a sole source supplier was to go out of business, the Company might be unable to find a replacement for such source in a timely manner or at all. If a sole source supplier were to be acquired by a competitor, that competitor may elect not to sell to the Company in the future. Any inability to secure a replacement for such source in a timely manner or at all could have a material adverse effect on the business, financial condition, results of operations or prospects of the Company.

*The pricing of raw materials used in our products and some of our products can be extremely volatile, which may have a material adverse effect on our financial result.*

 

We both purchase and sell certain raw materials. The pricing of these raw materials has been extremely volatile. For example, the price of both flower and distilled cannabis (oil) has fluctuated significantly and, in particular, has decreased significantly in recent months. This volatility may be disruptive to our supply chain and have an adverse effect on our financial results.

*Results of future clinical research may negatively impact the cannabis industry.*

 

Research in Canada, the U.S. and internationally regarding the medical benefits, viability, safety, efficacy, dosing and social acceptance of cannabis or isolated cannabinoids (such as CBD and THC), and associated terpenoids remains in early stages. There have been relatively few clinical trials on the benefits of cannabis or isolated cannabinoids (such as CBD and THC). Although the Company believes that the articles, reports and studies support its beliefs regarding the medical benefits, viability, safety, risks, efficacy, dosing and social acceptance of cannabis, future basic research and clinical trials may prove such statements to be incorrect, or could raise concerns regarding, and perceptions relating to, cannabis. Future research studies and clinical trials may reach negative conclusions regarding the medical benefits, viability, safety, efficacy, dosing, social acceptance or other facts and perceptions related to cannabis, which could have a material adverse effect on the demand for the Company's products with the potential to lead to a material adverse effect on the Company's business, financial condition, results of operations or prospects.

*The Company faces competition from the illegal cannabis market.*

 

The Company faces competition from illegal dispensaries and the illegal market that are unlicensed and unregulated, and that are selling cannabis and cannabis products, including products with higher concentrations of active ingredients, using flavors or other additives or engaging in advertising and promotion activities that the Company is not permitted to. As these illegal market participants do not comply with the regulations governing the cannabis industry, their operations may also have significantly lower costs. The perpetuation of the illegal market for cannabis may have a material adverse effect on the Company's business, results of operations, as well as the perception of cannabis use.

**Regulatory Risks**

*The Company may be subject to environmental regulations and risks.*

 

The Company's operations are subject to environmental regulation in the jurisdictions in which it operates. These regulations mandate, among other things, the maintenance of air and water quality standards and land reclamation. They also set forth limitations on the generation, transportation, storage and disposal of solid and hazardous waste. Environmental legislation is evolving in a manner which will require stricter standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental assessments of proposed projects and a heightened degree of responsibility for companies and their officers, directors (or the equivalent thereof) and employees. There is no assurance that future changes in environmental regulation, if any, will not adversely affect the Company's operations.

Government approvals and permits are currently, and may in the future, be required in connection with the Company's operations. To the extent such approvals are required and not obtained, the Company may be curtailed or prohibited from its current or proposed production, manufacturing or sale of cannabis or from proceeding with the development of its operations as currently proposed. States mandate unique inventory tracking requirements and systems which may present implementation and adherence challenges for operators, such as California's METRC track and trace inventory system, which requires integration with other systems and suffers frequent outages.

Failure to comply with applicable laws, regulations and permitting requirements may result in enforcement actions thereunder, including orders issued by regulatory or judicial authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital expenditures, installation of additional equipment, or remedial actions. The Company may be required to compensate those suffering loss or damage by reason of its operations and may have civil or criminal fines or penalties imposed for violations of applicable laws or regulations.

Amendments to current laws, regulations and permits governing the production or manufacturing of cannabis, or more stringent implementation thereof, could have a material adverse impact on the Company and cause increases in expenses, capital expenditures or production or manufacturing costs or reduction in levels of production or manufacturing or require abandonment or delays in development.

*The Company may be subject to constraints on the marketing of its products.*

 

The development of the Company's business and operating results may be hindered by applicable restrictions on sales and marketing activities imposed by government regulatory bodies. The regulatory environment in the United States limits companies' abilities to compete for market share in a manner similar to other industries. If the Company is unable to effectively market its products and compete for market share, or if the costs of compliance with government legislation and regulation cannot be absorbed through increased selling prices for its products, the Company's sales and results of operations could be adversely affected.

**General Risks**

*Risks associated with recent or future acquisitions.*

 

As part of the Company's overall business strategy, the Company intends to pursue strategic acquisitions which could provide additional product offerings, vertical integrations, additional industry expertise or a stronger industry presence in both existing and new jurisdictions. Future acquisitions may expose the Company to potential risks, including risks associated with: (i) the integration of new operations, services and personnel; (ii) unforeseen or hidden liabilities; (iii) the diversion of resources from the Company's existing interests and business; (iv) potential inability to generate sufficient revenue to offset new costs; (v) the expenses of acquisitions; or (vi) the potential loss of or harm to relationships with both employees and existing users resulting from its integration of new businesses. In addition, any proposed acquisitions may be subject to regulatory approval.

*The Company may invest in cannabis companies, including pre-revenue companies, that may not be able to meet anticipated revenue targets in the future.*

 

The Company may make investments in companies with no significant sources of operating cash flow and no revenue from operations. Investments in such companies will be subject to risks and uncertainties that new companies with no operating history may face. In particular, there is a risk that the Company's investment in these pre-revenue companies will not be able to meet anticipated revenue targets or will generate no revenue at all. The risk is that underperforming pre-revenue companies may lead to these businesses failing, which could have a material adverse effect on the Company's business, prospects, revenue, results of operation and financial condition.

*Financial projections may prove materially inaccurate or incorrect.*

 

Any of the Company's financial estimates, projections and other forward-looking information or statements were prepared by the Company without the benefit of reliable historical industry information or other information customarily used in preparing such estimates, projections and other forward-looking information or statements. Such forward-looking information or statements are based on assumptions of future events that may or may not occur. Investors should inquire of the Company and become familiar with the assumptions underlying any estimates, projections or other forward-looking information or statements. Projections are inherently subject to varying degrees of uncertainty and their achievability depends on the timing and probability of a complex series of future events. There is no assurance that the assumptions upon which these projections are based will be realized. Accordingly, investors should not rely on any projections to indicate the actual results the Company might achieve.

*There can be no assurance that the Company's current and future strategic alliances or expansions of scope of existing relationships will have a beneficial impact on the Company's business, financial condition and results of operations.*

 

The Company expects to enter into additional strategic alliances and partnerships with third parties that the Company believes will complement or augment the business. The Company's ability to complete strategic alliances is dependent upon, and may be limited by, the availability of suitable candidates and capital. In addition, strategic alliances could present unforeseen integration obstacles or costs, may not enhance the Company's business and may involve risks that could adversely affect the Company, including significant amounts of management time that may be diverted from operations in order to pursue and complete such transactions or maintain such strategic alliances. Future strategic alliances could result in the incurrence of additional debt, costs and contingent liabilities, and there can be no assurance that such strategic alliances will achieve the expected benefits to the Company's business. Any of the foregoing could have a material adverse effect on the Company's business, financial condition and results of operations.

*Competition in the cannabis industry is intense and increased competition by larger and better-financed competitors could materially and adversely affect the business, financial condition and results of operations of the Company.*

 

The Company will face intense competition from other companies, some of which can be expected to have longer operating histories and more financial resources and experience than the Company. Increased competition by larger and better financed competitors could materially and adversely affect the business, financial condition, results of operations or prospects of the Company. Because of the early stage of the industry in which the Company operates, the Company expects to face additional competition from new entrants. To become and remain competitive, the Company will require research and development, marketing, sales and support. The Company may not have sufficient resources to maintain research and development, marketing, sales and support efforts on a competitive basis which could materially and adversely affect the business, financial condition, results of operations or prospects of the Company.

*The Company is dependent on equipment and skilled labor.*

 

The ability of the Company to compete and grow will be dependent on it having access, at a reasonable cost and in a timely manner, to skilled labor, equipment, parts and components. No assurances can be given that the Company will be successful in maintaining its required supply of skilled labor, equipment, parts and components. It is also possible that the final costs of the major equipment contemplated by the Company's capital expenditure plans may be significantly greater than anticipated by the Company's management, and may be greater than the funds available to the Company, in which circumstance the Company may curtail, or extend the timeframes for completing, its capital expenditure plans. This could have an adverse effect on the business, financial condition, results of operations or prospects of the Company.

*The Company may be subject to intellectual property risks.*

 

The Company has certain proprietary intellectual property, including but not limited to brands, trademarks, trade names, copyright protected materials, trade secrets, and proprietary and/or confidential processes and know-how. The Company will rely on this intellectual property, know-how and other proprietary information, and require employees, consultants and suppliers to sign confidentiality agreements as appropriate. However, confidentiality agreements may be breached, and the Company's remedies under law may not have the effect of fully mitigating or preventing damage stemming from some breach. Absent of breach, third parties may independently develop substantially equivalent proprietary information without infringing upon any proprietary technology. Third parties may otherwise gain access to the Company's proprietary information and adopt it in a competitive manner. Any loss of intellectual property protection may have a material adverse effect on the Company's business, results of operations or prospects.

As long as cannabis remains illegal under U.S. federal law as a Schedule I controlled substance pursuant to the CSA, the benefit of certain U.S. federal laws and protections which may be available to most businesses, such as federal trademark and patent protection regarding the intellectual property of a business, may not be available to the Company. For example, in the United States, registered federal trademark protection is only available for goods and services that can be lawfully used in interstate commerce; the U.S. Patent and Trademark Office is not currently approving any trademark applications for cannabis, or certain goods containing U.S. hemp-derived CBD (such as dietary supplements and food) until the FDA and the USDA provides clearer guidance on the regulation of such products. As a result, the Company's intellectual property may not be adequately or sufficiently protected against the use or misappropriation by third parties. In addition, since the regulatory framework of the cannabis industry is in a constant state of flux, the Company can provide no assurance that it will obtain any protection of its intellectual property, whether on a federal, provincial, state or local level, despite its diligent and consistent efforts to so do. While many states do offer the ability to protect and register trademarks independent of the federal government, and courts have recognized the legal validity of common law rights in cannabis-business trademarks, such common law rights and state-registered trademarks provide a lower degree of protection than would federally registered marks as the rights provided are state-by-state and not nationwide and are dependent on use rather than intent to use. Additionally, patent protection is wholly unavailable on a state level.

*The Company s intellectual property rights may be invalid or unenforceable under applicable laws, and the Company may be unable to have issued or registered, and unable to enforce, its intellectual property rights.*

 

The laws and positions of intellectual property offices administering such laws regarding intellectual property rights relating to cannabis and cannabis-related products are constantly evolving, and there is uncertainty regarding which countries will permit the filing, prosecution, issuance, registration and enforcement of intellectual property rights relating to cannabis and cannabis-related products. The Company's ability to obtain registered trademark protection for cannabis and cannabis-related goods and services (including hemp and hemp-related goods and services), may be limited in certain countries, including the United States, where registered federal trademark protection is currently unavailable for trademarks covering the sale of cannabis products or certain goods containing U.S. hemp-derived CBD (such as dietary supplements and foods) until the FDA provides clearer guidance on the regulation of such products. Accordingly, the Company's ability to obtain intellectual property rights or enforce intellectual property rights against third-party uses of similar trademarks may be limited.

Moreover, in any infringement proceeding, some or all of the Company's current or future trademarks, patents or other intellectual property rights or other proprietary know-how, or arrangements or agreements seeking to protect the same for the Company's benefit, may be found invalid, unenforceable, anti-competitive or not infringed. An adverse result in any litigation or defense proceedings could put one or more of the Company's current or future trademarks, patents or other intellectual property rights at risk of being invalidated or interpreted narrowly and could put existing intellectual property applications at risk of not being issued. Any or all of these events could materially and adversely affect the Company's business, financial condition and results of operations.

The Company cannot offer any assurances about which, if any, patent applications will issue, the breadth of any such patent or whether any issued patents will be found invalid or unenforceable or which of the Company's products or processes will be found to infringe upon the patents or other proprietary rights of third parties. Any successful opposition to future issued patents could deprive the Company of rights necessary for the successful commercialization of any new products or processes that it may develop.

*The Company may be subject to the risks associated with fraudulent or illegal activity by its employees, contractors and consultants.*

 

The Company is exposed to the risk that its employees, independent contractors and consultants may engage in fraudulent or other illegal activity. Misconduct by these parties could include intentional, reckless and/or negligent unauthorized conduct that violates: (i) government regulations; (ii) manufacturing standards; (iii) federal, state and provincial healthcare fraud and abuse laws and regulations; (iv) laws that require the true, complete and accurate reporting of financial information or data; or (v) contractual arrangements, including confidentiality requirements. It may not always be possible for the Company to identify and deter misconduct by its employees and other third parties, and the precautions taken by the Company to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting the Company from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with applicable laws or regulations or contractual requirements. If any such actions are instituted against the Company, and it is not successful in defending itself or asserting its rights, those actions could have a significant impact on the Company's business, including the imposition of civil, criminal and administrative penalties, damages, monetary fines, contractual damages, reputational harm, diminished profits and future earnings, and curtailment of the Company's operations, any of which could have a material adverse effect on the Company's business, financial condition, results of operations or prospects.

*The Company may be subject to risks related to information technology systems, including cyber-attacks.*

 

The Company's operations depend, in part, on how well it and its suppliers protect networks, equipment, information technology systems and software against damage from a number of threats, including, but not limited to, cable cuts, damage to physical plants, natural disasters, intentional damage and destruction, fire, power loss, hacking, computer viruses, vandalism and theft. The Company's operations also depend on the timely maintenance, upgrade and replacement of networks, equipment, information technology systems and software, as well as pre-emptive expenses to mitigate the risks of failures. Any of these and other events could result in information system failures, delays and/or increase in capital expenses. The failure of information systems or a component of information systems could, depending on the nature of any such failure, adversely impact the Company's reputation and results of operations. The Company has not experienced any material losses to date relating to cyber-attacks or other information security breaches, but there can be no assurance that the Company will not incur such losses in the future. The Company's risk and exposure to these matters cannot be fully mitigated because of, among other things, the evolving nature of these threats. As a result, cyber security and the continued development and enhancement of controls, processes and practices designed to protect systems, computers, software, data and networks from attack, damage or unauthorized access is a priority. As cyber threats continue to evolve, the Company may be required to expend additional resources to continue to modify or enhance protective measures or to investigate and remediate any security vulnerabilities.

*The Company may be subject to risks related to security breaches.*

 

Given the nature of the Company's products and its lack of legal availability outside of channels approved by the United States federal government, as well as the concentration of inventory in its facilities, despite meeting or exceeding all legislative security requirements, there remains a risk of shrinkage as well as theft. A security breach at one of the Company's facilities could expose the Company to additional liability and to potentially costly litigation, increase expenses relating to the resolution and future prevention of these breaches and may deter potential customers from choosing the Company's products. In addition, the Company collects and stores personal information about its customers and is responsible for protecting that information from privacy breaches. A privacy breach may occur through procedural or process failure, information technology malfunction, or deliberate unauthorized intrusions. Theft of data for competitive purposes, particularly customer lists and preferences, is an ongoing risk whether perpetrated via employee collusion or negligence or through deliberate cyber-attack. Any such theft or privacy breach would have a material adverse effect on the Company's business, financial condition, results of operations and prospects.

*The Company's operations may be affected by changes in the economic environment.*

 

The Company's operations could be affected by the economic environment in which it operates should the unemployment level, interest rates or inflation reach levels that influence consumer trends and, consequently, impact the Company's sales and profitability.

*Management of growth may prove to be difficult.*

 

The Company may be subject to growth-related risks including capacity constraints and pressure on its internal systems and controls. The ability of the Company to manage growth effectively will require it to continue to implement and improve its operational and financial systems and to expand, train and manage its employee base. The inability of the Company to deal with this growth may have a material adverse effect on the Company's business, financial condition, results of operations or prospects.

*The Company does not intend to pay dividends on the Common Shares, so any returns will be limited to increases, if any, in the value of the Common Shares. Your ability to achieve a return on your investment will depend on appreciation, if any, in the price of our Common Shares.*

 

The Company currently anticipates that it will retain future earnings for the development, operation and expansion of our business and does not anticipate declaring or paying any cash dividends for the foreseeable future. Any future determination to declare dividends will be made at the discretion of the Board and will depend on, among other factors, the Company's financial condition, operating results, capital requirements, general business conditions and other factors that the Board may deem relevant. Any return to stockholders will therefore be limited to the appreciation in the value of their Common Shares, if any.

*The Company's officers and directors may be engaged in other business ventures resulting in conflicts of interest.*

 

Certain of the Company's directors and officers are, and may continue to be, or may become, involved in other business ventures through their direct and indirect participation in, among other things, corporations, partnerships and joint ventures, that are or may become competitors of the products and services the Company provides or intends to provide. Situations may arise in connection with potential acquisitions or opportunities where the other interests of these directors and officers conflict with or diverge from the Company's interests. In accordance with applicable corporate law, directors who have a material interest in a contract or transaction or a proposed contract or transaction with the Company that is material to the Company are required, subject to certain exceptions, to disclose that interest and generally abstain from voting on any resolution to approve the transaction. In addition, the directors and officers are required to act honestly and in good faith with a view to the Company's best interests.

However, in conflict of interest situations, the Company's directors and officers may owe the same duty to another company and will need to balance their competing interests with their duties to the Company. Circumstances (including with respect to future corporate opportunities) may arise that may be resolved in a manner that is unfavorable to the Company.

*Certain remedies may be limited to the Company.*

 

The Company's governing documents may provide that the liability of its members of the Board and its officers is eliminated to the fullest extent permitted under the laws of the Province of British Columbia. Thus, the Company and its shareholders may be prevented from recovering damages for certain alleged errors or omissions made by the members of the Board and its officers. The Company's governing documents may also provide that the Company will, to the fullest extent permitted by law, indemnify members of its Board and its officers for certain liabilities incurred by them by virtue of their acts on behalf of Company.

*Past performance is not indicative of future results.*

 

The prior operational performance of the Company is not indicative of any potential future operating results of the Company. There can be no assurance that the historical operating results achieved by the Company or its respective affiliates will be achieved by the Company, and the Company's performance may be materially different.

*Changes in accounting standards and subjective assumptions, estimates and judgments by management related to complex accounting matters could significantly affect the Company's reported financial results or financial condition.*

 

Generally accepted accounting principles and related accounting pronouncements, implementation guidelines and interpretations with regard to a wide range of matters that are relevant to the Company's business, including but not limited to revenue recognition, impairment of goodwill and intangible assets, inventory, income taxes and litigation, are highly complex and involve many subjective assumptions, estimates and judgments. Changes in these rules or their interpretation, or changes in underlying assumptions, estimates or judgments, could significantly change the Company's reported financial performance or financial condition in accordance with generally accepted accounting principles.

**CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS**

This prospectus contains forward-looking statements within the meaning of the federal securities laws, which statements involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this prospectus regarding our strategy, future events, future operations, future financial position, future revenue, projected costs, prospects, plans, objectives of management and expected market growth, among others, are forward-looking statements. The words "anticipate," "believe," "estimate," "expect," "intend," "may," "might," "plan," "predict," "project," "would," "will," "should," "could," "objective," "target," "ongoing," "contemplate," "potential" or "continue" or the negative of these terms and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements include, without limitation, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our ability to generate or secure sufficient funding to support our growth strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●future sales of our common stock that could depress the trading price of our common stock on the OTC, lower our value and make it more difficult for us to raise capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our ability to compete effectively;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our future financial performance, including our expectations regarding our revenue, cost of revenue, operating expenses, and our ability to achieve and maintain future profitability;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our expectations regarding outstanding litigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our expectations and management of future growth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our ability to maintain, protect and enhance our intellectual property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the increased expenses associated with being a public company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our anticipated uses of net proceeds from this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our expectations regarding the effects of existing and developing laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our beliefs regarding our liquidity and sufficiency of cash to fund our operations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the other matters described in "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Business."

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in "Risk Factors." Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this prospectus may not occur and actual results may differ materially and adversely from those anticipated or implied in the forward-looking statements.

You should not rely upon forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this prospectus to conform these statements to actual results or to changes in our expectations.

You should read this prospectus and the documents that we reference in this prospectus and have filed with the SEC as exhibits to the registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

**USE OF PROCEEDS**

All of the shares of our common stock offered by this prospectus are being registered for the account of the selling security holders. We will not receive any of the proceeds from the sale of these shares. However, upon the exercise of the Purchase Warrants for an aggregate of ____________ shares of common stock, we will receive the exercise price of the warrants, or an aggregate of $________________. We have agreed to pay all costs, expenses and fees relating to the registration of the shares of our common stock covered by this prospectus. The selling security holders will bear all commissions and discounts, if any, attributable to the sale of the shares.

**DIVIDEND POLICY**

We have never declared or paid cash dividends on our capital stock. We currently intend to retain all available funds and future earnings, if any, to fund the development and growth of our business. Therefore, we do not anticipate paying any cash dividends in the foreseeable future. Any future determination to pay dividends will be at the discretion of our board of directors, and will depend upon our results of operations, financial condition, capital requirements and other factors including contractual obligations that our board of directors deems relevant and any limits in the payment of dividends that may be imposed upon us under any credit facility or other agreement we may have with a third party that restricts out ability to pay dividends.

**BUSINESS**

LEEF Brands, Inc. ("LEEF," "we," "our" or the "Company") is a vertically integrated cannabis company focused on the production and sale of bulk cannabis concentrates to leading brands in the California and New York cannabis markets. We operate three primary production lines: ethanol (distillate oil), hydrocarbon, and solventless extraction. Our business model centers on supplying high-quality cannabis concentrates to other brands and retailers rather than selling under our own consumer-facing brands.

In December 2024, we adopted a Bitcoin treasury strategy as part of our broader capital allocation policy. Under this strategy, the Company may deploy a portion of its available cash reserves into Bitcoin (BTC) as a long-term store of value and strategic treasury asset. We believe Bitcoin offers a compelling alternative to holding cash due to its finite supply, decentralized nature, and potential for long-term appreciation. Our Bitcoin holdings are secured in institutional-grade cold storage and are intended to be held on an open-ended basis, absent a near-term need for liquidity. We may also utilize Bitcoin as collateral in certain financing transactions, enabling us to access capital while retaining exposure to the asset. This strategy is intended to enhance shareholder value, diversify our treasury assets, and align the Company with what we believe will be an emerging standard for corporate reserve management.

**Principal Products and Markets**

Our principal products are bulk cannabis concentrates, including distillate oils, live resin, and rosin. We currently operate in California and New York, which represent two of the largest regulated cannabis markets in the United States.

**Distribution Methods**

We sell our products directly to licensed cannabis brands, which incorporate our concentrates into finished goods sold through licensed retailers. We do not currently sell directly to dispensaries or consumers.

**New Products and Services**

In 2025, we announced our entry into the New York market for the sale of bulk concentrates. We have obtained a Type 1 Processor license in New York and are in the process of building out our extraction laboratory in Hobart, New York with anticipates sales beginning in Q3 2025.

**Competitive Conditions**

The cannabis concentrate market is highly competitive, with numerous private and public companies competing on quality, price, and reliability. We compete primarily with other bulk concentrate manufacturers. We believe our vertically integrated supply chain, including company-owned cultivation, and our reputation for quality and consistency position us competitively within the industry.

**Raw Materials and Suppliers**

We source cannabis input material, including both dried biomass and fresh-frozen cannabis, for use in our extraction operations. Until early 2025, we purchased cannabis material from multiple farms throughout California. In 2025, we brought online the Salisbury Canyon Ranch in Santa Barbara County, California, a 1,900-acre property with a 187-acre outdoor cannabis cultivation permit, making it one of the largest permitted outdoor cannabis farms in the state. This acquisition provides us with a consistent supply of clean, pesticide-free cannabis material at a significantly reduced cost compared to market prices.

**Major Customers**

We do not have any single customer that represents more than 10% of our revenue; however, we supply concentrates to many of the top brands in California.

**Intellectual Property and Contracts**

We do not currently own or license any patents, trademarks, or other intellectual property that is material to our operations. We do not have exclusive licenses, franchise rights, royalty agreements, or significant labor contracts.

**Government Approvals**

We operate under various state and local licenses and approvals, including:

● California: Type 7 manufacturing license, distribution license, retail license, hemp license, and all applicable municipal permits.

● New York: Type 1 processor license.

All licenses are active and in good standing.

**Regulatory Impact**

Our operations are subject to extensive state and local regulations in California and New York. Additionally, as a cannabis business operating in the United States, we are subject to Section 280E of the Internal Revenue Code, which disallows deductions for ordinary business expenses due to the federal classification of cannabis as a Schedule I controlled substance. This has a material impact on our effective tax rate. Potential federal legalization or reclassification of cannabis could eliminate the impact of Section 280E and enable interstate commerce, which may significantly alter competitive dynamics.

**Environmental Compliance**

We are required to comply with various environmental regulations, including cannabis waste disposal, water usage, and air quality standards. Compliance does not currently result in material costs to our business.

**Employees**

As of July 31, 2025, we employ approximately 50 full-time employees.

**Properties**

Our principal physical properties include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Mendocino County, California** – Cannabis manufacturing facility (leased), used for ethanol,
 hydrocarbon, and solventless extraction operations.

2. **Hobart, New York** – Cannabis manufacturing facility (leased), under construction for bulk
 concentrate production.

3. **Santa Barbara County, California** – Salisbury Canyon Ranch, a 1,900-acre property with
 a 187-acre permitted outdoor cannabis cultivation site. The ranch is owned by the Company.

4. **Palm Desert, California** – Licensed retail dispensary location (leased).

We own the Salisbury Canyon Ranch outright. Our other operating facilities are leased under standard commercial lease agreements with terms we consider customary for our industry. None of our owned or leased properties are subject to mortgages or encumbrances that we believe are material to our business.

**INVOLVEMENT IN LEGAL PROCEEDINGS**

The Company is subject to litigation claims arising in the ordinary course of business. The Company records litigation accruals for legal matters which are both probable and estimable and for related legal costs as incurred. The Company does not reduce these liabilities for potential insurance or third-party recoveries.

As of December 31, 2024 and December 31, 2023, respectively, the Company was not engaged in any litigation.

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION**

**AND RESULTS OF OPERATIONS**

*You should read the following discussion and analysis of our financial condition and results of operations together with the financial statements and the related notes and other financial information included elsewhere in this prospectus. In addition to historical information, this discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those discussed below. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled "Risk Factors" beginning on page 7. Our historical results are not necessarily indicative of the results to be expected for any future period.*

**Emerging Growth Company Status**

We are an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards issued subsequent to the enactment of the JOBS Act until such time as those standards apply to private companies. We have irrevocably elected not to avail ourselves of this exemption and, therefore, we are subject to the same new or revised accounting standards as other public companies that are not "emerging growth companies." Other exemptions and reduced reporting requirements under the JOBS Act for emerging growth companies include presentation of only two years audited financial statements in a registration statement for an initial public offering, an exemption from the requirement to provide an auditor's report on internal controls over financial reporting pursuant to the Sarbanes-Oxley Act of 2012, an exemption from any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation, and less extensive disclosure about our executive compensation arrangements.

We will remain an emerging growth company until the earliest of (i) the last day of our first fiscal year in which we have total annual gross revenue of $1.07 billion or more, (ii) the last day of the fiscal year following the fifth anniversary of closing of this offering, (iii) the date on which we have issued more than $1.0 billion of non-convertible debt instruments during the previous three fiscal years or (iv) the date on which we are deemed a "large accelerated filer" under the rules of the SEC with at least $700.0 million of outstanding equity securities held by non-affiliates.

**Overview**

Leef Brands Inc. (Formerly Icanic Brands Company Inc.) was incorporated on September 15, 2011, under the laws of the province of British Columbia and is registered extra-provincially under the laws of Ontario. The Company is a cannabis branded products manufacturer based in California. The Company is a public company whose common shares are listed for trading on the Canadian Securities Exchange ("CSE") under the symbol "LEEF". The head office of the Company is located at Suite 2500 Park Place, 666 Burrard Street, Vancouver, BC V6C 2X8.

On April 20, 2022, the Company acquired all of the common stock of LEEF Holdings, Inc. ("LEEF"). LEEF is a leading cannabis extraction company located in the state of California and provides bulk concentrate to cannabis brands in the state of California. LEEF's manufacturing capabilities include a 12,000 square foot extraction and manufacturing facility with significant throughput and distillate extraction capability. Core manufacturing competencies include ethanol extraction (Type 6 manufacturing license), hydrocarbon extraction (Type 7 manufacturing license), and solventless extraction. LEEF received a 186.7 acre cultivation land use permit, which has resulted in owning one of the largest cannabis cultivation site in the state of California.

***Critical Accounting Policies and Estimates***

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities, the disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the reported periods. We evaluate these estimates and assumptions on an ongoing basis and base our estimates on historical experience, current conditions and various other assumptions that are believed to be reasonable under the circumstances. The results of these estimates form the basis for making judgments about the carrying values of assets and liabilities as well as identifying and assessing the accounting treatment with respect to commitments and contingencies. Our actual results may materially differ from these estimates.

The financial statements were prepared with estimates and assumptions that impact the reported amounts of assets and liabilities. These estimates were used for inventories, impairment of long-term assets, and derivatives. The actual results could differ significantly from these estimates. Business combinations were accounted for using the acquisition method. Assets, liabilities, and any remaining non-controlling interests were recognized at fair value on the acquisition date. The excess of the purchase price over the fair value of assets acquired, net of liabilities assumed, and non-controlling interests, was recognized as goodwill. The company considers investments with an original maturity of three months or less at the purchase date as cash and cash equivalents.

The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Management makes estimates that affect certain accounts including deferred income tax assets, accrued expenses, fair value of equity instruments and reserves for any other commitments or contingencies. Any adjustments applied to estimates are recognized in the period in which such adjustments are determined.

**Results of Operations**

***Three Months Ended June 30, 2025 and 2024***

The following tables set forth the components of our statements of operations for each of the periods presented and as a percentage of revenue for those periods. The period-to-period comparison of results of operations is not necessarily indicative of results of future periods.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| Net revenue | $8691656 | 100% | $7916653 | 100% |
| Cost of sales | 6595481 | 76% | 5226760 | 66% |
| Gross profit | 2096175 | 24% | 2689893 | 34% |
| &nbsp;&nbsp;&nbsp;Operating expenses | 4469334 | 51% | 3006223 | 38% |
| Income (loss) from operations | (2373159) | -27% | (316330) | -4% |
| Other expense (income): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expenses | 579387 | 7% | 2658175 | 34% |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | 0% | 2883245 | 36% |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (566681) | -7% | (1147371) | -14% |
| &nbsp;&nbsp;&nbsp;Other expense (income) | (60557) | -1% | - | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense (income) | (47851) | -1% | 4394049 | 56% |
| Income (loss) before provision for income taxes | (2325308) | -27% | (4710379) | -59% |
| Provision for income taxes | 607891 | 7% | 829093 | 10% |
| Net income (loss) and comprehensive income (loss) | (2933199) | -34% | (5539472) | -70% |
| Foreign currency translation | 343 | 0% | (205292) | -3% |
| **Net income (loss) and comprehensive income (loss) attributable to shareholders of Leef Brands, Inc.** | $**(2933542)** | **3%** | $**(5334180)** | **-67%** |

---

**Revenue**

Revenue for the three months ended June 30, 2025 was $8,691,656, an increase of $775,003, or 10%, as compared to $7,916,653 for the three months ended June 30, 2024. The increase in revenues is primarily due to a strategic transition away from CPG sales through retail strategy, shifting the sales focus to leveraging our core strength in concentrate manufacturing to support and power the top brands in California. CPG sales they became immaterial in 2024 as the Company concentrated efforts on the bulk sales concentrates market, which has driven the increase in revenue. The Company has continued to work with high quality customers in order to limit any credit risk.

**Cost of Sales and Gross Profit**

Cost of sales for the three months ended June 30, 2025 was $6,595,481, an increase of $1,368,721, or 26% as compared to $5,226,760 for the three months ended June 30, 2024. Gross profit for the three months ended June 30, 2025 was $2,096,175, representing a gross margin of 24%, compared with a gross profit of $2,689,893, representing a gross margin of 34% for the three months ended June 30, 2024. The decrease in gross profit margin percentage is due to an increased share of sales in the bulk concentrates market, which have a lower margin.

**Operating Expenses**

Total operating expenses for the three months ended June 30, 2025 were $4,469,334, an increase of $1,463,111, or 49%, compared to total operating expenses of $3,006,223 for the three months ended June 30, 2024. The increase in total operating expenses was attributable to the factors described below. Wages and salaries for the three months ended June 30, 2025 and 2024 were $1,943,497 and $1,226,217, respectively, an increase of $717,280, or 59%. The increase in wages and salaries expense is primarily attributable to stock compensation expense. Office and general expenses for the three months ended June 30, 2025 and 2024 were $840,023 and $432, 500, respectively, an increase of $407,523, or 94%. The increase in office and general expenses is primarily attributable to an increase in shipping costs.

**Net Income (Loss) and Comprehensive Income (Loss) Attributable to Shareholders**

Net income (loss) and comprehensive income (loss) attributable to shareholders of LEEF Brands, Inc. for the three months ended June 30, 2025 and 2024 was $2,933,542 and $5,334,180, respectively, a decreased loss of $2,400 638 or 45%. The net loss and comprehensive net loss saw a large decrease mainly related to long-term debt restructuring in April 2024 associated with refinancing. During the three months ended June 30, 2025 and 2024, other (income) expenses totaled ($47,851) and $4,394,049, respectively, for a favorable increase related to decreases in interest expense for the period of $2,078,788 and loss on extinguishment of debt of $2,883,245.

**Results of Operations**

***Six Months Ended June 30, 2025 and 2024***

The following tables set forth the components of our statements of operations for each of the periods presented and as a percentage of revenue for those periods. The period-to-period comparison of results of operations is not necessarily indicative of results of future periods.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2024** | **June 30, 2024** |
|  | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** | **(Unaudited)** |
| Net revenue | $18089918 | 100% | $15742000 | 100% |
| Cost of sales | 13507145 | 75% | 9928058 | 63% |
| Gross profit | 4582773 | 25% | 5813942 | 37% |
| &nbsp;&nbsp;&nbsp;Operating expenses | 8863477 | 49% | 5552694 | 35% |
| Income (loss) from operations | (4280704) | -24% | 261248 | 2% |
| Other expense (income): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expenses | 1171889 | 6% | 4125387 | 26% |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | 0% | 2883245 | 18% |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (4105121) | -23% | (259391) | -2% |
| &nbsp;&nbsp;&nbsp;Other expense (income) | (9053) | 0% | - | 0% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense (income) | (2942285) | -16% | 6749241 | 43% |
| Income (loss) before provision for income taxes | (1338419) | -7% | (6487993) | -41% |
| Provision for income taxes | 1329004 | 7% | 1761309 | 11% |
| Net income (loss) and comprehensive income (loss) | (2667423) | -15% | (8249302) | -52% |
| Foreign currency translation | 343 | 0% | (151794) | -1% |
| **Net income (loss) and comprehensive income (loss) attributable to shareholders of Leef Brands, Inc.** | $**(2667766)** | **-15%** | $**(8097508)** | **-51%** |

---

**Revenue**

Revenue for the six months ended June 30, 2025 was $18,089,918, an increase of $2,347,918, or 15%, as compared to $15,742,000 for the six months ended June 30, 2024. The increase in revenues is primarily due to a strategic transition away from CPG sales through retail strategy, shifting the sales focus to leveraging our core strength in concentrate manufacturing to support and power the top brands in California. CPG sales they became immaterial in 2024 as the Company concentrated efforts on the bulk sales concentrates market, which has driven the increase in revenue. The Company has continued to work with high quality customers in order to limit any credit risk

**Cost of Sales and Gross Profit**

Cost of sales for the six months ended June 30, 2025 was $13,507,145, an increase of $3,579,087, or 36% as compared to $9,928,058 for the six months ended June 30, 2024. Gross profit for the six months ended June 30, 2025 was $4,582,773, representing a gross margin of 25%, compared with a gross profit of $5,813,942, representing a gross margin of 37% for the six months ended June 30, 2024. The decrease in gross profit margin percentage is due to an increased share of sales in the bulk concentrates market, which have a lower margin.

**Operating Expenses**

Total operating expenses for the six months ended June 30, 2025 were $8,863,477, an increase of $3,310,783 or 60 %, compared to total operating expenses of $5,552,694 for the six months ended June 30, 2024. The increase in total operating expenses was attributable to the factors described below. Wages and salaries for the six months ended June 30, 2025 and 2024 were $3,824,256 and $2,212,994, respectively, an increase of $1,611,262, or 73%. The increase in wages and salaries expense is primarily attributable to an increase in stock based compensation. Office and general expenses for the six months ended June 30, 2025 and 2024 were $1,694,871 and $794,618, respectively, an increase of $900,253, or 113%. The increase in office and general expenses is primarily attributable to an increase in shipping costs.

**Net Income (Loss) and Comprehensive Income (Loss) Attributable to Shareholders**

Net income (loss) and comprehensive income (loss) attributable to shareholders of LEEF Brands, inc. for the six months ended June 30, 2025 and 2024 was $2,667,766 and $8,097,508, respectively, a decreased loss of $5,429,742 or 67%. The net loss and comprehensive net loss saw a large decrease mainly related to long-term debt restructuring in April 2024 associated with refinancing. During the six months ended June 30, 2025 and 2024, other (income) expenses totaled ($2,942,285) and $6,749,241, respectively, for a favorable increase related to decreases in interest expense for the period of $2,953,498 and a loss from extinguishment of debt of $2,883,345. In addition, the Company recognized a large favorable change during the six months ended June 30, 2025 related to revaluation of its derivative liabilities.

**Liquidity and Capital Resources**

Cash (used in) provided by operating activities for the six months ended June 30, 2025 and 2024 was ($2,033,388) and $162,076, respectively, an unfavorable change of $2,195,464. The decrease in net cash provided by operating activities was primarily due to the unfavorable cashflow changes related to the change in fair value of derivative liability of $3,845,730. These were offset by favorable changes in changes in operating assets and liabilities of $3.8 million for the six months ended June 30, 2025 as compared to the prior period.

Cash used in investing activities for the six months ended June 30, 2025 and 2024 was $384,258 and $3,263,968, respectively, a favorable change of $2,879,710. The favorable change was primarily due to a decrease in capital expenditures of $2.8 million compared to the prior period.

Cash (used in) provided by financing activities for the six months ended June 30, 2025 and 2024 was $573,901 and ($165,537), respectively, a favorable change of $739,438. The decrease of cash used in financing activities was primarily due to favorable changes for proceeds from related party notes payable issuances of $749,630 and favorable changes in note payable repayments and loan advances to a third party which decreased by $418,941 during the six months ended June 30, 2025 compared to the prior period.

**Results of Operations**

***Years ended December 31, 2024 and 2023***

 ****

The following tables set forth the components of our statements of operations for each of the periods presented and as a percentage of revenue for those periods. The period-to-period comparison of results of operations is not necessarily indicative of results of future periods.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Year Ended** | **Year Ended** | **Year Ended** | **Year Ended** |
|  | **December 31, 2024** | **December 31, 2024** | **December 31, 2023** | **December 31, 2023** |
| Net revenue | $28495447 | 100% | $30609351 | 100% |
| Cost of sales | 19555279 | 69% | 20591417 | 67% |
| Gross profit | 8940168 | 31% | 10017934 | 33% |
| Operating expenses | 16926013 | 59% | 46288637 | 151% |
| Income (loss) from operations | (7985845) | -28% | (36270703) | -118% |
| Other expense (income): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expenses | 5155288 | 18% | 4575578 | 15% |
| &nbsp;&nbsp;&nbsp;Loss (gain) on extinguishment of debt | 2935029 | 10% | (1978) | 0% |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | (855000) | -3% | 21129 | 0% |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | 6113485 | 21% | (399066) | -1% |
| &nbsp;&nbsp;&nbsp;Other expense (income) | (20376) | 0% | (538103) | -2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense (income) | 13328426 | 47% | 3657560 | 12% |
| Income (loss) before provision for income taxes | (21314271) | -75% | (39928263) | -130% |
| Provision for income taxes | 3307243 | 12% | (4959178) | -16% |
| Net income (loss) and comprehensive income (loss) | (24621514) | -86% | (34969085) | -114% |
| Foreign currency translation | 7314 | 0% | (174961) | -1% |
| Net income (loss) and comprehensive income (loss) attributable to non-controlling interest | - | 0% | (142689) | 0% |
| **Net income (loss) and comprehensive income (loss) attributable to shareholders of Leef Brands Company Inc.** | $**(24628828)** | **-86%** | $**(34651435)** | **-113%** |

---

**Revenue**

Revenue for the year ended December 31, 2024 was $28,495,447, a decrease of $2,113,904, or 7%, as compared to $30,609,351 for the year ended December 31, 2023. The decrease in revenues is primarily due to a strategic transition away from CPG sales through retail strategy, shifting the sales focus to leveraging our core strength in concentrate manufacturing to support and power the top brands in California. While CPG sales were more substantial in 2023, they have become immaterial in 2024 as the Company concentrated efforts on the bulk sales concentrates market. The Company has continued to work with high quality customers in order to limit any credit risk.

**Cost of Sales and Gross Profit**

Cost of sales for the year ended December 31, 2024 was $19,555,279, a decrease of $1,036,138, or 5% as compared to $20,591,417 for the year ended December 31, 2023. Gross profit for the year ended December 31, 2024 was $8,940,168, representing a gross margin of 31%, compared with a gross profit of $10,017,934, representing a gross margin of 33% for the year ended December 31, 2023. The decrease in gross profit is consistent with the decrease in revenues.

**Operating Expenses**

Total operating expenses for the year ended December 31, 2024 were $16,926,013, a decrease of $29,362,624, or 63%, compared to total operating expenses of $46,288,637 for the year ended December 31, 2023. The decrease in total operating expenses was attributable to the factors described below. Wages and salaries for the years ended December 31, 2024 and 2023 were $5,878,649 and $5,856,086, respectively, an increase of $22,563, or 0%. Legal and professional fees for the years ended December 31, 2024 and 2023 were $1,373,915 and $1,789,018, respectively, a decrease of $415,103, or 23%. The decrease in legal and professional fees is primarily attributable to overall efforts to focus on engaging cost efficient professionals. Loss on impairment of goodwill, intangibles, and long-lived assets for the years ended December 31, 2024 and 2023 were $2,661,384 and $30,026,458, respectively, a decrease of $27,365,074, or 91%. The decrease is primarily attributable to the expectation on future cashflows generated from the intellectual property that was acquired in the merger with the Icanic.

**Net Income (Loss) and Comprehensive Income (Loss) Attributable to Shareholders**

Net income (loss) and comprehensive income (loss) attributable to shareholders for the years ended December 31, 2024 and 2023 was $24,628,828 and $34,651,435, respectively, a decrease of $10,022,608, or 29%. The decrease in net loss and comprehensive net loss was primarily due to the decrease in operating expenses as discussed above, offset with increases in total other expenses of $9,670,866, a 264% increase. The increases (decreases) in other expense was due to change in contingent consideration, change in fair value of derivative liabilities, and loss on extinguishment of debt was ($876,129), $6,512,551, and $2,937,006, respectively.

**Liquidity and Capital Resources**

Cash provided by (used in) operating activities for the years ended December 31, 2024 and 2023 was ($1,049,106) and $187,823, respectively, an unfavorable change of $1,236,929, or 659%. The decrease in net cash used in operating activities was primarily due to the unfavorable cashflow changes related to changes in the addbacks for loss on impairment of $27,611,973 and loss on asset disposal of $1,211,330. These were offset by a decrease to net loss of $10,347,571 and favorable changes in the addbacks for amortization of debt discounts, loss on extinguishment of convertible debentures, and change in the fair value of derivative liability of $3,535,940, $2,935,028, and $6,512,551, respectively, for the year ended December 31, 2024 as compared to the prior year.

Cash (used in) provided by investing activities for the years ended December 31, 2024 and 2023 was ($6,266,118) and ($7,283,346), respectively, an favorable change of $1,017,228. The favorable change was primarily due to a reduction in capital expenditures during the current year of $1,690,226 as compared to the prior year. This was offset with an unfavorable change in investment in intangible assets and cash acquired from acquisition of $346,777 and $326,221, respectively, compared to the prior year.

Cash provided by financing activities for the years ended December 31, 2024 and 2023 was $3,625,302 and $10,379,311, respectively, an unfavorable change of $6,754,009. The decrease of cash provided by financing activities was primarily due to a significant decrease in cash provided by the proceeds of new notes payable issuances of $10,676,866. This was offset by an increase in proceeds from the issuance of common shares for cash of $2,177,759 in the current year as compared to the prior year.

**Critical Accounting Policies and Estimates**

We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, and make estimates and assumptions that affect our reported amounts of assets, liabilities, revenue and expenses, and the related disclosures of contingent liabilities. We base our estimates on historical experience and other assumptions that we believe are reasonable in the circumstances. Actual results may differ from these estimates.

The following critical accounting policies affect our more significant estimates and assumptions used in preparing our consolidated financial statements. Also, see Note 3 to the accompanying consolidated financial statements for a complete discussion of our accounting policies and estimates.

**Principles of Consolidation and Non-Controlling Interest**

The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of the Company and its wholly owned subsidiaries. The Company consolidates entities where it has a controlling financial interest, as defined by ASC 810, "Consolidation".

In accordance with ASC 810-10, consolidation applies to:

● Entities with more than 50% voting interest, unless control is not with the Company; and

● Variable Interest Entities (VIEs), where the Company is the primary beneficiary, possessing both (i) power over significant activities and (ii) the obligation to absorb losses or receive benefits.

All intercompany transactions and balances are eliminated in consolidation per ASC 810-10-45. The Company continuously evaluates its investments and relationships to assess consolidation requirements.

**Business Segments and Expense Disclosure**

The Company follows ASC 280, Segment Reporting, which requires public entities to report financial and descriptive information about their reportable operating segments.

ASC 280-10-50-1 states that an operating segment is a component of a public entity that:

● Engages in business activities from which it may earn revenues and incur expenses;

● Has operating results that are regularly reviewed by the Chief Operating Decision Maker (CODM), who is the Company's Chief Executive Officer, to make decisions about resource allocation and performance assessment; and

● Has discrete financial information available.

Under ASC 280-10-50-5, a public entity is required to report separately only those operating segments that meet certain quantitative thresholds. However, as specified in ASC 280-10-50-11, if a company's business activities are managed as a single operating segment and reviewed on a basis, the company may report as a single segment. The Company has determined that it operates as one reportable segment, as its CODM reviews the business as a whole rather than by distinct business components.

Customers in the United States accounted for 100% of our revenues. We do not have any property or equipment outside of the United States.

**Use of Estimates and Assumptions**

The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the recognition of revenues and expenses during the reporting period. Actual results may differ from these estimates, and such differences could be material.

In accordance with ASC 250-10-50-4, changes in estimates are recorded in the period in which they become known and are accounted for prospectively. The Company bases its estimates on historical experience, industry trends, and other relevant factors, incorporating both quantitative and qualitative assessments that it believes are reasonable under the circumstances.

Significant estimates for the years ended December 31, 2024 and 2023 include:

● Allowance for doubtful accounts and other receivables

● Valuation of loss contingencies

● Valuation of stock-based compensation

● Estimated useful lives of property and equipment

● Impairment of intangible assets

● Implicit interest rate in right-of-use operating leases

● Uncertain tax positions

● Valuation of derivative liabilities

● Valuation allowance on deferred tax assets

● Determination of revenue recognition

**Fair Value of Financial Instruments**

The Company accounts for financial instruments in accordance with Financial Accounting Standards Board (FASB) ASC 820, Fair Value Measurements, which establishes a framework for measuring fair value and requires related disclosures. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the Company's principal market or, if none exists, the most advantageous market for the asset or liability.

Fair Value Hierarchy

ASC 820 requires the use of observable inputs whenever available and establishes a three-tier hierarchy for measuring fair value:

● Level 1 – Quoted market prices (unadjusted) for identical assets or liabilities in active markets.

● Level 2 – Observable inputs other than quoted prices in active markets, such as quoted prices for similar assets and liabilities or inputs that are directly or indirectly observable.

● Level 3 – Unobservable inputs that require significant judgment, including management assumptions and estimates based on available market data.

The classification of an asset or liability within the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Level 3 valuations generally require more judgment and complexity, often involving a combination of cost, market, or income approaches, as well as assumptions about market conditions, pricing, and other factors.

Fair Value Determination and Use of External Advisors

The Company assesses the fair value of its financial instruments and, where appropriate, may engage external valuation specialists to assist in determining fair value. While management believes that recorded fair values are reasonable, they may not necessarily reflect net realizable values or future fair values.

Financial Instruments Carried at Historical Cost

The Company's financial instruments—including cash, accounts receivable, accounts payable, and accrued expenses (including related party balances)—are recorded at historical cost. As of December 31, 2024 and 2023, respectively, the carrying amounts of these instruments approximated their fair values due to their short-term maturities.

Fair Value Option Under ASC 825

ASC 825-10, Financial Instruments, permits entities to elect the fair value option for certain financial assets and liabilities. This election is made on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If elected, unrealized gains and losses are recognized in earnings at each reporting date. The Company has elected the fair value option for its derivative liabilities.

**Accounts Receivable**

The Company accounts for accounts receivable in accordance with FASB ASC 310, Receivables. Receivables are recorded at their net realizable value, which represents the amount management expects to collect from outstanding customer balances (ASC 310-10-35-7).

The Company extends credit to customers based on an evaluation of their financial condition and other factors. The Company does not require collateral, and interest is not accrued on overdue accounts receivable (ASC 310-10-45-4).

Allowance for Doubtful Accounts

Management periodically assesses the collectability of accounts receivable and establishes an allowance for doubtful accounts as needed. The allowance is determined based on:

● A review of outstanding accounts,

● Historical collection experience, and

● Current economic conditions (ASC 310-10-35-9).

Accounts deemed uncollectible are written off against the allowance when determined to be uncollectible (ASC 310-10-35-10).

**Concentrations**

The Company evaluates and discloses significant concentrations of risk in accordance with FASB ASC 275-10, Risks and Uncertainties. These risks may arise from customer concentrations, vendor reliance, geographic dependence, or other economic factors that could materially impact the Company's financial position, results of operations, and cash flows.

A concentration exists when a single customer, supplier, or market accounts for a significant portion (typically greater than 10%) of the Company's total revenues, accounts receivable, or vendor purchases (ASC 275-10-50-16).

Customer and Sales Concentrations

The Company's revenue stream may be dependent on a limited number of key customers. A loss of any significant customer, a decline in demand from such customers, or a deterioration in their financial condition could negatively impact the Company's future revenues and profitability.

Accounts Receivable Concentrations

The Company extends credit to customers based on their financial strength, payment history, and other relevant factors. A significant concentration of accounts receivable from a limited number of customers could expose the Company to credit risk and potential collection issues. The Company regularly evaluates the creditworthiness of its customers and may require advance payments, letters of credit, or other credit enhancements to mitigate risks.

**Impairment of Long-lived Assets**

Management evaluates the recoverability of the Company's identifiable intangible assets and other long-lived assets when events or circumstances indicate a potential impairment exists, in accordance with the provisions of ASC 360-10-35-15 *"Impairment or Disposal of Long-Lived Assets."* Events and circumstances considered by the Company in determining whether the carrying value of identifiable intangible assets and other long-lived assets may not be recoverable include but are not limited to significant changes in performance relative to expected operating results; significant changes in the use of the assets; significant negative industry or economic trends; and changes in the Company's business strategy.

In determining if impairment exists, the Company estimates the undiscounted cash flows to be generated from the use and ultimate disposition of these assets.

If impairment is indicated based on a comparison of the assets' carrying values and the undiscounted cash flows, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets.

**Derivative Liabilities**

The Company evaluates financial instruments containing characteristics of both liabilities and equity in accordance with FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging.

Accounting for Derivative Liabilities

Derivative liabilities are revalued at fair value at each reporting period, with changes in fair value recognized in the results of operations as a gain or loss on derivative remeasurement (ASC 815-40-35-4). The Company uses a binomial pricing model to determine the fair value of these instruments.

Conversion and Extinguishment of Derivative Liabilities

When a debt instrument with an embedded conversion option (e.g., convertible debt or warrants) is converted into shares of common stock or repaid, the Company:

● Records the newly issued shares at fair value;

● Derecognizes all related debt, derivative liabilities, and unamortized debt discounts; and

● Recognizes a gain or loss on debt extinguishment, if applicable (ASC 470-50-40-2).

For equity-based derivative liabilities (e.g., warrants) that are extinguished, any remaining liability balance is reclassified to additional paid-in capital (ASC 815-40-35-9).

Reclassification of Equity Instruments to Liabilities

Equity instruments initially classified as equity may be reclassified as liabilities if they no longer meet equity classification criteria under ASC 815-40-25. In such cases, they are remeasured at fair value on the date of reclassification, with changes recognized in earnings (ASC 815-40-35-8).

**Revenue Recognition**

Under Accounting Standards Update ("ASU") No. 2014-09 (Topic 606) "Revenue from Contracts with Customers", revenue from contracts with customers is measured based on the consideration specified in the contract with the customer, and excludes any sales incentives, discounts, rebates, and amounts collected on behalf of third parties.

A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account under Topic 606. The Company's contracts with its customers do not include multiple performance obligations. The Company recognizes revenue when a performance obligation is satisfied by transferring control over a product or service to a customer. The amount of revenue recognized reflects the consideration the Company expects to be entitled to in exchange for such products or services.

The following represents the analysis management has considered in determining its revenue recognition policy:

Identify the contract with a customer

A contract with a customer exists when (i) the Company enters into an enforceable contract with a customer that defines each party's rights regarding the services to be transferred and identifies the payment terms related to these services, (ii) the contract has commercial substance and, (iii) the Company determines that collection of substantially all consideration for services that are transferred is probable based on the customer's intent and ability to pay the promised consideration. The Company applies judgment in determining the customer's ability and intention to pay, which is based on a variety of factors including the customer's historical payment experience or, in the case of a new customer, published credit and financial information pertaining to the customer.

Identify the performance obligations in the contract

Performance obligations promised in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the services is separately identifiable from other promises in the contract. To the extent a contract includes multiple promised services, the Company must apply judgment to determine whether promised services are capable of being distinct and distinct in the context of the contract. If these criteria are not met the promised services are accounted for as a combined performance obligation.

Determine the transaction price

The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring services to the customer. To the extent the transaction price includes variable consideration, the Company estimates the amount of variable consideration that should be included in the transaction price utilizing either the expected value method or the most likely amount method depending on the nature of the variable consideration. Variable consideration is included in the transaction price if, in the Company's judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur.

None of the Company's contracts contain a significant financing component.

Allocate the transaction price to performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. However, if a series of distinct services that are substantially the same qualifies as a single performance obligation in a contract with variable consideration, the Company must determine if the variable consideration is attributable to the entire contract or to a specific part of the contract. For example, a bonus or penalty may be associated with one or more, but not all, distinct services promised in a series of distinct services that forms part of a single performance obligation. Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on a relative standalone selling price basis unless the transaction price is variable and meets the criteria to be allocated entirely to a performance obligation or to a distinct service that forms part of a single performance obligation. The Company determines standalone selling price based on the price at which the performance obligation is sold separately.

If the standalone selling price is not observable through past transactions, the Company estimates the standalone selling price taking into account available information such as market conditions and internally approved pricing guidelines related to the performance obligations.

The Company's contracts have a distinct single performance obligation and there are no contracts with variable consideration.

Recognize revenue when or as the Company satisfies a performance obligation

**Income Taxes**

The Company accounts for income taxes using the asset and liability method prescribed by FASB ASC 740, Income Taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences of differences between the financial reporting and tax bases of assets and liabilities. These amounts are measured using enacted tax rates expected to apply in the periods when temporary differences reverse (ASC 740-10-30-8).

The effect of a change in tax rates on deferred tax balances is recognized as income or expense in the period that includes the enactment date (ASC 740-10-45-4).

Uncertain Tax Positions

The Company evaluates uncertain tax positions in accordance with ASC 740-10-25, which requires that a tax position be recognized in the financial statements only if it is more likely than not (greater than 50% likelihood) to be sustained upon examination by tax authorities.

As of December 31, 2024 and 2023, respectively, the Company had no uncertain tax positions that qualified for recognition or disclosure in the financial statements (ASC 740-10-50-15).

The Company also recognizes interest and penalties related to uncertain tax positions in other expense in the consolidated statement of operations (ASC 740-10-45-25). No interest and penalties were recorded for the years ended December 31, 2024 and 2023, respectively.

Valuation of Deferred Tax Assets

The Company's deferred tax assets include certain future tax benefits, such as net operating losses (NOLs), tax credits, and deductible temporary differences. Under ASC 740-10-30-5, a valuation allowance is required if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized.

The Company reviews the realizability of deferred tax assets on a quarterly basis, or more frequently if circumstances warrant, considering both positive and negative evidence (ASC 740-10-30-16).

Factors Considered in Valuation Allowance Assessment

The Company evaluates multiple factors in determining whether a valuation allowance is necessary, including:

● Historical earnings trends (cumulative pre-tax income or losses in the most recent three-year period)

● Future financial projections, including expected taxable income based on long-term estimates of business performance and market conditions

● Statutory carryforward periods for net operating losses and other deferred tax assets

● Prudent and feasible tax planning strategies that could impact the realization of deferred tax assets

● Nature and predictability of temporary differences and the timing of their reversal

● Sensitivity of financial forecasts to external factors such as commodity prices, market demand, and operational risks

While cumulative three-year losses are a strong indicator that a valuation allowance may be needed, ASC 740-10-30-23 states that a valuation allowance determination is not solely based on past losses—all available positive and negative evidence must be considered.

At December 31, 2024 and 2023, respectively, the Company recorded an income tax provision and deferred tax liability.

The Company will continue to evaluate its valuation allowance each reporting period and will recognize deferred tax assets in the future if sufficient positive evidence emerges to support their realization.

**Stock-Based Compensation**

The Company accounts for stock-based compensation in accordance with ASC 718, "Compensation – Stock Compensation," using the fair value-based method. Under this guidance, compensation cost is measured at the grant date based on the fair value of the award and is recognized over the requisite service period, typically the vesting period.

ASC 718 establishes accounting standards for transactions in which an entity exchanges its equity instruments for goods or services. It also applies to transactions where an entity incurs liabilities based on the fair value of its equity instruments or liabilities that may be settled using equity instruments.

In compliance with ASU 2018-07, the Company applies the fair value method for equity instruments granted to both employees and non-employees, aligning non-employee share-based payment accounting with that of employees. The fair value of stock-based compensation is determined as of the grant date or the measurement date (i.e., when the performance obligation is completed) and is recognized over the vesting period in accordance with ASC 718.

The Company determines the fair value of stock options using the Black-Scholes option pricing model, considering the following key assumptions:

● Exercise price – The agreed-upon price at which the option can be exercised.

● Expected dividends – The anticipated dividend yield over the expected life of the option.

● Expected volatility – Based on historical stock price fluctuations.

● Risk-free interest rate – Derived from U.S. Treasury securities with similar maturities.

● Expected life of the option – Estimated based on historical exercise patterns and contractual terms.

Additionally, the Company follows the guidance under ASU 2016-09, which introduced amendments to simplify certain accounting aspects of share-based compensation, including:

● The treatment of tax benefits and tax deficiencies in income tax reporting.

● The option to recognize forfeitures as they occur rather than estimating them upfront.

● Cash flow classification for certain tax-related transactions.

The Company continues to evaluate and apply the latest Accounting Standards Updates (ASUs) and interpretive releases related to stock-based compensation to ensure compliance with evolving financial reporting requirements.

**Stock Warrants**

In connection with certain financing transactions (debt or equity), consulting arrangements, or strategic partnerships, the Company may issue warrants to purchase shares of its common stock. These standalone warrants are not puttable or mandatorily redeemable by the holder and are classified as equity instruments in accordance with ASC 480, "Distinguishing Liabilities from Equity."

The fair value of warrants issued for compensation purposes is measured using the Black-Scholes option pricing model, consistent with the guidance in ASC 718-10-30. However, if warrants meet the definition of derivative liabilities under ASC 815, "Derivatives and Hedging," fair value is determined using a binomial pricing model or other appropriate valuation techniques, as required by ASC 815-40-15.

Accounting Treatment of Warrants

● Warrants issued in conjunction with common stock issuance are initially recorded at fair value as a reduction in Additional Paid-In Capital (APIC), in accordance with ASC 815-40-25.

● Warrants issued for services are recorded at fair value and expensed over the requisite service period or immediately upon issuance if no service period exists, as per ASC 718-10-25.

● Warrants classified as liabilities due to settlement features or pricing adjustments are remeasured at fair value each reporting period, with changes recognized in earnings, following ASC 815-40-35.

**Basic and Diluted Earnings (Loss) per Share**

The Company computes earnings per share ("EPS") in accordance with ASC 260, "Earnings Per Share." The calculation of basic EPS follows the two-class method and is determined by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding, including certain other shares committed to be issued.

Basic Earnings Per Share (EPS)

Basic EPS is calculated using the two-class method, as prescribed by ASC 260-10-45-60, and is computed as follows:

● Net earnings available to common shareholders represent net earnings to common shareholders, adjusted for the allocation of earnings to participating securities.

● Losses are not allocated to participating securities in accordance with ASC 260-10-45-61.

● The denominator includes common shares outstanding and certain other shares committed to be issued, such as restricted stock and restricted stock units ("RSUs"), for which no future service is required.

Diluted Earnings Per Share (EPS)

Diluted EPS is calculated under both the two-class method and the treasury stock method, and the more dilutive result is reported, as required by ASC 260-10-45-45.

● Diluted EPS is computed by taking the sum of:

○ Net earnings available to common shareholders

○ Dividends on preferred shares

○ Dividends on dilutive mandatorily redeemable convertible preferred shares

○ Divided by the weighted average number of common shares outstanding and certain other shares committed to be issued, plus all dilutive common stock equivalents during the period, such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ Stock
 options

■ Warrants

■ Convertible
 preferred stock

■ Convertible
 debt

● Preferred shares and unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) qualify as participating securities under the two-class method, per ASC 260-10-45-62.

Net Loss Per Share Considerations

In computing net loss per share, unvested shares of common stock are excluded from the denominator, as required by ASC 260-10-45-48.

Participating Securities & Share-Based Compensation

Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively. Therefore:

● Before the requisite service is rendered for the right to retain the award, these instruments meet the definition of a participating security under ASC 260-10-45-59.

RSUs granted under an executive compensation plan, however, are not considered participating securities because the rights to dividend equivalents are forfeitable (ASC 718-10-25).

**Related Parties**

The Company defines related parties in accordance with ASC 850, "Related Party Disclosures," and SEC Regulation S-X, Rule 4-08(k). Related parties include entities and individuals that, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company.

Related parties include, but are not limited to:

● Principal owners of the Company.

● Members of management (including directors, executive officers, and key employees).

● Immediate family members of principal owners and members of management.

● Entities affiliated with principal owners or management through direct or indirect ownership.

● Entities with which the Company has significant transactions, where one party has the ability to exercise control or significant influence over the management or operating policies of the other.

A party is considered related if it has the ability to control or significantly influence the management or operating policies of the Company in a manner that could prevent either party from fully pursuing its own separate economic interests.

The Company discloses all material related party transactions, including:

● The nature of the relationship between the parties.

● A description of the transaction(s), including terms and amounts involved.

● Any amounts due to or from related parties as of the reporting date.

● Any other elements necessary for a clear understanding of the transactions' effects on the financial statements.

Disclosures are made in accordance with ASC 850-10-50-1 through 50-6 and SEC Regulation S-X, Rule 4-08(k), which requires registrants to disclose material related party transactions and their effects on the financial position and results of operations.

**Recent Accounting Standards**

ASU 2022-02 – Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures In March 2022, the FASB issued ASU 2022-02, which:

● Eliminates the troubled debt restructuring (TDR) model for creditors under ASC 310, "Receivables."

● Requires enhanced vintage disclosures related to credit losses, including gross write-offs by year of origination.

● Updates the accounting guidance under ASC 326, "Financial Instruments – Credit Losses," to enhance disclosures regarding loan refinancings and restructurings for borrowers experiencing financial difficulty.

The Company adopted ASU 2022-02 on January 1, 2023. The adoption did not have a material impact on the Company's consolidated financial statements.

ASU 2023-07 – Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

In November 2023, the FASB issued ASU 2023-07, which enhances disclosure requirements for reportable segments by:

● Requiring enhanced disclosures of significant segment expenses.

● Aligning segment reporting requirements with information regularly reviewed by management.

The Company adopted ASU 2023-07 on January 1, 2024. The adoption did not have a material impact on the Company's consolidated financial statements.

Recently Issued Accounting Standards Not Yet Adopted

ASU 2023-09 – Income Taxes (Topic 740): Improvements to Income Tax Disclosures

In December 2023, the FASB issued ASU 2023-09, which enhances income tax disclosure requirements by:

● Standardizing and disaggregating rate reconciliation categories.

● Requiring disclosure of income taxes paid by jurisdiction.

This ASU is effective for annual periods beginning after December 15, 2024, and may be applied on a prospective or retrospective basis. Early adoption is permitted.

The Company is currently assessing the impact of ASU 2023-09 on its income tax disclosures and reporting requirements.

Other Accounting Standards Updates

The FASB has issued various technical corrections and industry-specific updates that are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows.

Other Recent Updates

Various other ASUs have been issued that primarily contain technical corrections or industry-specific guidance. These updates are not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows.

**Reclassifications**

Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no material effect on the consolidated results of operations, stockholders' deficit, or cash flows.

**Liquidity and Going Concern**

As reflected in the accompanying consolidated financial statements, for the year ended December 31, 2024, the Company had:

● Net
 loss of $24,621,514; and

● Net
 cash used in operations was $1,049,106

Additionally, at December 31, 2024, the Company had:

● Accumulated
 deficit of $121,747,435

● Stockholders'
 deficit of $12,433,944; and

● Working
 capital deficit of $13,536,391

The Company anticipates that it will need to raise additional capital immediately in order to continue to fund its operations. The Company has relied on related parties for debt based funding of its operations. There is no assurance that the Company will be able to obtain funds on commercially acceptable terms, if at all. There is also no assurance that the amount of funds the Company might raise will enable the Company to complete its initiatives or attain profitable operations.

There can be no assurances that financing will be available on terms which are favorable, or at all. If the Company is unable to raise additional funding to meet its working capital needs in the future, it will be forced to delay, reduce, or cease its operations.

We manage liquidity risk by reviewing, on an ongoing basis, our sources of liquidity and capital requirements. The Company had cash on hand of $2,731,979 at December 31, 2024.

The Company has historically incurred significant losses since inception and has not demonstrated an ability to generate sufficient revenues from the sales of its products and services to achieve profitable operations. In making this assessment we performed a comprehensive analysis of our current circumstances including: our financial position, our cash flows and cash usage forecasts for the twelve months ended December 31, 2025, and our current capital structure including equity-based instruments and our obligations and debts.

These factors create substantial doubt about the Company's ability to continue as a going concern within the twelve-month period subsequent to the date that these financial statements are issued.

The consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Accordingly, the financial statements have been prepared on a basis that assumes the Company will continue as a going concern and which contemplates the realization of assets and satisfaction of liabilities and commitments in the ordinary course of business.

Management's strategic plans include the following:

● Expand into new and existing markets,

● Obtain additional debt and/or equity based financing,

● Collaborations with other operating businesses for strategic opportunities; and

● Acquire other businesses to enhance or complement our current business model while accelerating our growth.

**Off-Balance Sheet Transactions**

None.

**Critical Accounting Policies and Estimates**

*Use of Estimates*

The preparation of the condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the condensed consolidated financial statements and the reported amounts of expenses during the reporting period. Actual results could differ from those estimates.

Management makes estimates that affect certain accounts including deferred income tax assets, accrued expenses, fair value of equity instruments and reserves for any other commitments or contingencies. Any adjustments applied to estimates are recognized in the period in which such adjustments are determined.

*Recent Accounting Pronouncements*

See Note 2 of the accompanying consolidated financial statements for a discussion of recently issued accounting standards.

**Employees**

As of December 31, 2024, we had 88 employees. Out of the 88 employees the Company had 83 full time employees and 5 part-time employees.

**MANAGEMENT**

**Executive Officers and Directors**

The following table sets forth the names, state of residence, ages and positions of (i) our current executive officers and directors, and (ii) our director nominees who will become directors upon the effectiveness of this offering.

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Positions Held** |
| **Executive Officers** |  |  |
| Micah Anderson | 46 | Principal Executive Officer |
| Kevin Wilson | 38 | Principal Chief Financial Officer |
| Emily Heitman | 39 | Director |
| **Non-Employee Directors** |  |  |
| Andrew Glashow | 62 | Director |

---

**Executive Officers**

***Micah Anderson***, 46, has served as our Principal Executive Officer, since 2018. Mr. Anderson is a serial entrepreneur and the CEO of LEEF Holdings. He is responsible for setting and delivering on the overall strategy of LEEF. Micah has extensive experience in all aspects of the cannabis industry and currently holds every cannabis license type. Under his leadership, LEEF has recruited a world-class team of executives and board members, developed distribution relationships with leading retailers in the U.S., and has built the most sophisticated extraction facility in North America.

Micah has raised private equity and institutional debt to capitalize LEEF and has negotiated a wide range of complex sourcing and operating agreements. Recognized at the Federal and state level as a key opinion leader, Micah speaks regularly at conferences and advises government officials on public policy matters.

***Kevin Wilson***, 38, has served as our Chief Financial Officer, since 2022. Mr. Wilson is a professional accountant with executive experience in several organizations including public firms and large NPOs. He has led several finance teams as a technical accountant with an eye for bottom-line results. Mr. Wilson has an intimate understanding of the cannabis industry intricacies and has been instrumental in strategically leading the finance efforts for a vertically integrated cannabis company.

He has led several finance projects and has been part of several M&A and IPO transactions. His eye for detail has helped lead several companies through challenging financial issues. Mr. Wilson currently serves as director and treasurer for a Toronto-based NPO.

***Emily Heitman,*** 39, has served as a member of our board of directors since 2018. Ms. Heitman is a self-starter with an entrepreneurial mind, balancing creative, out-of-the-box thinking with strategic focus. She has unparalleled attention to detail and ensures every dollar spent counts. Emily has led the marketing and creative process for multimillion-dollar brands and played an integral role in multiple start-ups, wearing many hats—from operations to sales and brand image. As a Director of LEEF Holdings, Emily has been deeply involved in every aspect of the cannabis industry, from manufacturing to distribution, overseeing the company's sales and CPG brand positioning. She has managed day-to-day operations, strategic accounts, marketing initiatives, and product merchandising and launches. Emily has bridged her pharmaceutical foundation with the cannabis industry and frequently speaks at industry conferences. She has played a key role in shifting the social stigma surrounding cannabis through education.

**Non-Employee Directors**

***Andrew Glashow,*** 62, has served as a member of our board of directors since 2024. Andrew Glashow has 25 years of experience in the capital markets and in all phases of business start-up and growth, including feasibility studies, business plans, equity and debt funding, private placements, reverse mergers, and IPOs. Mr. Glashow has served as CEO and President of multiple companies that he helped to fund. He is a graduate of the University of New Hampshire's Whittemore School of Business and Economics.

**Appointment of Officers; Family Relationships**

Our executive officers are appointed by, and serve at the discretion of, our board of directors. There are no family relationships among any of our directors or executive officers.

**Board Composition**

Our board of directors currently consists of four members previously outlined. Our directors hold office until their successors have been elected and qualified or until the earlier of their resignation or removal.

Our articles provide that the authorized number of directors shall be not less than three persons. Within such limits, the number of directors shall be determined by resolution of the board of directors. Our bylaws also provide that that (a) in the event that the places of any retiring directors are not filled by an election of directors, those retiring directors may continue in office to complete the number of directors; (b) any casual vacancy occurring in the board of directors may be filled by the directors; and (c) between annual general meetings or by unanimous resolution of the shareholders, the directors may appoint one or more additional directors, provided that such number of additional directors does not exceed one-third of the number of current directors who were otherwise elected or appointed.

We have no formal policy regarding board diversity. Our priority in selection of board members is identification of members who will further the interests of our stockholders through his or her established record of professional accomplishment, the ability to contribute positively to the collaborative culture among board members, knowledge of our business and understanding of the competitive landscape.

**Board Committees**

We hold regularly scheduled quarterly Board meetings, but we do not have standing audit, nominating or compensation committees of our Board of Directors, or any committee performing similar functions. Our Board of Directors performs the functions of audit, nominating and compensation committees. As of the date of this report, no member of our Board of Directors qualifies as an "audit committee financial expert" as defined in Item 407(d)(5) of Regulation SK promulgated under the Securities Act.

The Company is evaluating expansion of its current Board of Directors, including the addition of an independent board member with sufficient accounting and financial experience to chair an audit committee, as well as creating charters for its contemplated audit committee and compensation committee. Our board of directors expects to establish standing committees in connection with the discharge of its responsibilities.

**Code of Business Conduct and Ethics**

We have adopted a written code of business conduct and ethics that applies to our directors, officers and employees, including our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. Following this offering, a copy of the code will be made available on the investor relations section of our website. If we make any substantive amendments to, or grant any waivers from, the code of business conduct and ethics for any officer or director, we will disclose the nature of such amendment or waiver on our website or in a current report on Form 8-K.

**Board Diversity**

Upon formation of our nominating and corporate governance committee they will be responsible for reviewing with the board of directors, on an annual basis, the appropriate characteristics, skills and experience required for the board of directors as a whole and its individual members. In evaluating the suitability of individual candidates (both new candidates and current members), the nominating and corporate governance committee, in recommending candidates for election, and the board of directors, in approving (and, in the case of vacancies, appointing) such candidates, may consider many factors, including but not limited to the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●personal and professional integrity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●ethics and values;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●experience in corporate management, such as serving as an officer or former officer of a publicly held company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●professional and academic experience relevant to our industries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●experience as a board member of another publicly held company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●strength of leadership skills;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●experience in finance and accounting and/or executive compensation practices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●ability to devote the time required for preparation, participation and attendance at board of directors' meetings and committee meetings, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●background, gender, age and ethnicity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●conflicts of interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●ability to make mature business judgments.

Following the closing of this offering, our board of directors will evaluate each individual in the context of the board of directors as a whole, with the objective of ensuring that the board of directors, as a whole, has the necessary tools to perform its oversight function effectively in light of our business and structure.

**Non-Employee Director Compensation**

Prior to this offering, our non-employee directors received a quarterly cash retainer of $6,250.

Upon completion of this offering, our non-employee directors will continue to receive a quarterly cash retainer of $6,250. In addition, we will reimburse all of our directors for travel and other necessary business expenses incurred in the performance of director services and extend coverage to them under our directors' and officers' indemnity insurance policies.

**Environmental, Social and Governance**

We believe that how we manage our impact on the environment and climate change; how we manage our relationships with employees, suppliers, customers and the communities where we operate; and the accountability of our leadership to our stockholders are critically important to our business. We are especially committed to supporting our employees and fostering a culture of diversity and inclusion that makes our employees feel safe, empowered and engaged.

After completion of this offering, we will be engaging resources to focus on a broader Environmental, Social and Governance (ESG) program across our business. We are targeting to complete an ESG assessment by the end of the year. This assessment will help us prioritize our ESG strategies going forward.

**EXECUTIVE COMPENSATION**

This section discusses the material components of the executive compensation program for our current executive officers, Micah Anderson, our CEO, and Kevin Wilson, our Chief Financial Officer. We refer to these individuals as our "named executive officers."

**Compensation Philosophy**

Following the closing of this offering, we expect that our compensation program for our executive officers will consist of the following components:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●base salary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●cash bonuses; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●equity-based incentive awards.

***Base Salary***

 ****

Base salary is an important component of executive compensation because it provides executives with an assured level of income, assists us in attracting executives and recognizes different levels of responsibility and authority among executives. The determination of base salaries is based upon the executive's qualifications and experience, scope of responsibility and potential to achieve the goals and objectives established for the executive. Additionally, contractual provisions in executive employment agreements, past performance, internal pay equity and comparison to competitive salary practices are also considered.

***Cash Bonus Plan***

 ****

To date, there is no formal cash bonus plan for any of our named executive officers.

**Summary Compensation Table**

The following table shows for the fiscal years ended December 31, 2024, and December 31, 2023, compensation awarded to or paid to, or earned by, our President, Chief Executive Officer and Chief Financial Officer (the "Named Executive Officers").

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** |  | **Stock Awards ($)** |  | **Total ($)** |
| Micah Anderson | 2023 | $200000 | $– $| \*\*\* | $– $| 200000 |
| (CEO) | 2024 | $201923 | $– $|  | $– $| 201923 |
| Kevin Wilson | 2023 | $144231 | $– $| \*\*\* | $– $| 144231 |
| (CFO) | 2024 | $151923 | $– $| \*\*\* | $– $| 151923 |

---

**Narrative Disclosure to Summary Compensation**

**Micah Anderson -** Effective April 2022, the Company issued common shares to Micah Anderson, the Company's President and Director per his executed employment contract. Mr. Anderson has entered into an Employment, Confidential Information, Invention Assignment and Arbitration Agreement with the Company, a form copy of which is attached hereto as Exhibit 10.2.

**Kevin Wilson -** Effective December 2024, the Company issued common shares to Kevin Wilson as the Company's CFO. In December 2024, Mr. Wilson entered into an employment agreement with the Company as its CFO on a full-time basis. Mr. Wilson has also entered into an Employment, Confidential Information, Invention Assignment and Arbitration Agreement with the Company, a form copy of which is attached hereto as Exhibit 10.2.

***Executive Employment***

In April 2022, we memorialized our employment agreements with Mr. Anderson.

In December 2024, we memorialized our employment agreement with Mr. Wilson.

The employment agreements do not require us to compensate the executives or provide them with benefits if their employment is terminated.

Messrs. Anderson or Wilson or the Company may terminate their employment agreement for any reason, with or without notice at any time.

**Equity Awards**

**Compensation of Directors**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position** | **Year** | **Salary ($)** | **Bonus ($)** | **Stock Awards ($)** | **All Other Compensation ($)** | **Total ($)** |
| Micah Anderson | 2023 | $200000 | $- | $\*\*\* | $- | $200000 |
| (Director) | 2024 | $201923 | $- | $\*\*\* | $- | $201923 |
| Kevin WIlson | 2023 | $144231 | $- | $\*\*\* | $- | $144231 |
| (Director) | 2024 | $151923 | $- | $\*\*\* | $- | $151923 |
| Emily Heitman | 2023 | $148200 | $&nbsp;&nbsp;&nbsp;&nbsp;- | $- | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;- | $148200 |
| (Director) | 2024 | $169384 | $- | $- | $- | $169384 |
| Ben Slome | 2023 | $- | $- | $- | $- | $- |
| (Director) | 2024 | $- | $- | $- | $18750 | $18750 |
| Andrew Glashow | 2023 | $- | $- | $- | $- | $- |
| (Director) | 2024 | $- | $- | $- | $18750 | $18750 |

---

**Narrative Disclosure to Summary Compensation**

**\*\*\*Micah Anderson -** In April 2022, Mr. Anderson entered into an employment agreement with the Company as its CEO on a full-time basis. The term of the employment agreement runs through April 2025.

**\*\*\*Kevin Wilson -** Effective December 2024, the Company issued 1,350,000 common shares of the Company to Kevin Wilson, the Company's CFO. In December 2024 Mr. Wilson entered into an employment agreement with the Company as its CFO on a full-time basis. The term of the employment agreement runs through December 2026. These shares were fully earned and paid to Mr. Wilson in 2025. with the Company, a form copy of which is attached hereto as Exhibit 10.2.

**Indemnification of Directors and Officers**

We are a Canadian corporation governed by the British Columbia.

As permitted by the Business Corporation's Act (British Columbia), or BCBCA, under Section 21.2 of our articles of incorporation, we are required to indemnify our directors and former directors (and such individual's respective heirs and legal representatives) and we will indemnify any such person to the extent permitted by the BCBCA.

**CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS**

Set forth below are summaries of related person transactions for Leef Brands, Inc. covering the periods indicated. It is our intention to ensure that all future transactions, if any, between us and related persons are approved by our audit committee or a majority of the independent and disinterested members of our board of directors (except for compensation arrangements, which are approved by our compensation committee), and are on terms no less favorable to us than those that we could obtain from unaffiliated third parties. See "Policies and Procedures for Related Person Transactions" below.

**Certain Relationships and Related Transactions**

None.

**Corporate Governance and Director Independence**

The Company has not:

● established its own definition for determining whether its directors and nominees for directors are "independent" nor has it adopted any other standard of independence employed by any national securities exchange or inter-dealer quotation system, though our current director would not be deemed to be "independent" under any applicable definition given that he is an officer of the Company; nor

● established any committees of the board of directors.

Given the nature of the Company's business, its limited stockholder base and the current composition of management, the board of directors does not believe that the Company requires any corporate governance committees at this time.

As of the date hereof, the entire board serves as the Company's audit committee.

**Indemnification of Officers and Directors**

As permitted by the BCBCA, under Section 21.2 of our articles of incorporation, we are required to indemnify our directors and former directors (and such individual's respective heirs and legal representatives) and we will indemnify any such person to the extent permitted by the BCBCA.

**Policies and Procedures for Related Person Transactions**

Our board of directors will adopt a written policy with respect to related person transactions, which will become effective at the time of this offering. This policy will govern the review, approval or ratification of covered related person transactions. The audit committee of our board of directors will manage this policy.

For purposes of the policy, a "related person transaction" is a transaction, arrangement or relationship (or any series of similar transactions, arrangements or relationships) in which we were, are or will be a participant, and the amount involved exceeds the applicable dollar threshold set forth under Item 404 of Regulation S-K and in which any related person had, has or will have a direct or indirect material interest. As defined in Item 404 of Regulation S-K, "related person" generally includes our directors (and director nominees), executive officers, holders of more than 5% of our voting securities, and immediate family members or affiliates of such persons.

The policy will generally provide that we may enter into a related person transaction only if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the audit committee pre-approves such transaction in accordance with the guidelines set forth in the policy,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the transaction is on terms comparable to those that could be obtained in arm's length dealings with an unrelated third party and the audit committee (or the chairperson of the audit committee) approves or ratifies such transaction in accordance with the guidelines set forth in the policy,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the transaction is approved by the disinterested members of the board of directors, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the transaction involves compensation approved by our compensation committee.

The policy will provide that all related person transactions will be disclosed to the audit committee, and all material related person transactions will be disclosed to the board of directors. Additionally, all related person transactions requiring public disclosure will be properly disclosed, as applicable, on our various public filings.

**SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT**

The following table sets forth information regarding beneficial ownership of our voting securities as of August 13, 2025, by:

● each person, or group of affiliated persons, known by us who will beneficially own more than 5% of any class of our voting capital stock;

● each of our directors;

● each of our named executive officers; and

● all of our directors and executive officers as a group.

The table is based on information provided to us by our directors, executive officers and principal stockholders. Beneficial ownership is determined in accordance with the rules of the SEC and generally means that a person has beneficial ownership of a security if he, she or it possesses sole or shared voting or investment power of that security, including stock options and warrants that are exercisable within 60 days of August 13, 2025. To our knowledge, except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table below have sole voting and investment power with respect to all shares of voting capital stock shown as beneficially owned by them. Shares of voting capital stock underlying derivative securities, if any, that are currently exercisable or exercisable within 60 days after June 30, 2025 are deemed to be outstanding in calculating the percentage ownership of the applicable person or group but are not deemed to be outstanding as to any other person or group.

Percentage of common stock is based on 175,750,130 shares of our common stock issued and outstanding as of August 13, 2025.

**Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.**

The following table sets forth, as of August 13, 2025, certain information with regard to the record and beneficial ownership of the Company's common stock by (i) each person known to the Company to be the record or beneficial owner of 5% or more of the Company's common stock, (ii) each director of the Company, (iii) each of the named executive officers, and (iv) all executive officers and directors of the Company as a group:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Name** | **Shares of Common Stock Beneficially Owned** | **Percent of Class (3)** | **Total Shares Beneficially Owned** | **Voting Percentage for all Classes (fully-diluted)(1)** |
| Micah Anderson(2) | 24752221 | 14.11% | 29025540 | 11.05% |
| Kevin Wilson(2) | 2512919 | 1.43% | 4487787 | 1.71% |
| Emily Heitman(2) | 8962739 | 5.11% | 9652.855 | 3.67% |
| Andrew Glashow(2) | Nil | 0.00% | Nil | 0.00% |
| All Directors/Director nominees and executive officers as a group (4 persons) | 36277880 | 20.65% | 43166182 | 16.43% |

---

(1) Based
 on 235,932,823 fully diluted votes as of August 13, 2025.

(2) Denotes
 an Officer or Director of the Company.

(3) Based on 175,750,130 outstanding shares of common stock
 as of August 13, 2025

**DESCRIPTION OF CAPITAL STOCK**

The following description summarizes the most important terms of our capital stock. We are incorporated in the British of Columbia. This summary does not purport to be complete and is qualified in its entirety by the provisions of our articles, a copy of which has been filed with the SEC as an exhibit to the registration statement of which this prospectus is a part, and to the applicable provisions of Canadian law.

**Authorized Capital Stock**

We are authorized to issue up to unlimited number shares of common stock, without par value, and unlimited number of shares of preferred stock, without par value, of which no shares have been designated to a specific class and no shares have been issued. As of the date of this prospectus, we have 175,750,130 shares of common stock outstanding.

**Common Stock**

The following summarizes the rights of holders of our common stock:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●each holder of common stock is entitled to one vote per share on all matters to be voted upon generally by the stockholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●subject to preferences that may apply to shares of preferred stock that may be issued and outstanding, the holders of common stock are entitled to receive lawful dividends as may be declared by our board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●upon our liquidation, dissolution or winding up, the holders of our shares of common stock are entitled to receive a pro rata portion of all of our assets remaining for distribution after satisfaction of all its liabilities and the payment of any liquidation preference of any then outstanding preferred stock;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●there is no redemption or sinking fund provisions applicable to our common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●there are no preemptive or conversion rights applicable to our common stock.

**Preferred Stock**

Our board of directors is authorized to issue from time to time, in one or more designated series, any or all of our authorized but unissued shares of preferred stock with dividend, redemption, conversion, exchange, voting and other provisions as may be provided in that particular series. The issuance need not be approved by our common stockholders.

The rights of the holders of our common stock will be subject to, and may be adversely affected by, the rights of the holders of any preferred stock that may be issued in the future. Issuance of a new series of preferred stock, while providing desirable flexibility in connection with possible acquisitions and other corporate purposes, could have the effect of entrenching our board of directors and making it more difficult for a third party to acquire, or discourage a third party from acquiring, a majority of our outstanding voting stock.

**Trading**

Our common stock is quoted on the OTC under the symbol "LEEEF" and on the CSE under the symbol "LEEF".

**Transfer Agent**

Olympia Trust Company serves as transfer agent and registrar for our common stock.

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES TO NON-U.S. HOLDERS**

The following discussion is a summary of the material U.S. federal income tax consequences to Non-U.S. Holders (as defined below) of the purchase, ownership and disposition of our common stock issued pursuant to this offering but does not purport to be a complete analysis of all potential tax effects. The effects of other U.S. federal tax laws, such as estate and gift tax laws, and any applicable state, local or non-U.S. tax laws are not discussed. This discussion is based on the Code, Treasury Regulations promulgated thereunder, judicial decisions, and published rulings and administrative pronouncements of the U.S. Internal Revenue Service, or the IRS, in each case in effect as of the date hereof. These authorities may change or be subject to differing interpretations. Any such change or differing interpretation may be applied retroactively in a manner that could adversely affect a Non-U.S. Holder of our common stock. We have not sought and will not seek any rulings from the IRS regarding the matters discussed below. There can be no assurance the IRS or a court will not take a contrary position to that discussed below regarding the tax consequences of the purchase, ownership and disposition of our common stock.

This discussion is limited to Non-U.S. Holders that hold our common stock as a "capital asset" within the meaning of Section 1221 of the Code (generally, property held for investment). This discussion does not address all U.S. federal income tax consequences relevant to a Non- U.S. Holder's particular circumstance, including the impact of the Medicare contribution tax on net investment income. In addition, it does not address consequences relevant to Non-U.S. Holders subject to special rules, including, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●U.S. expatriates and former citizens or long-term residents of the U.S.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●persons subject to the alternative minimum tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●persons holding our common stock as part of a hedge, straddle or other risk reduction strategy or as part of a conversion transaction or other integrated investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●banks, insurance companies and other financial institutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●brokers, dealers or traders in securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●"controlled foreign corporations," "passive foreign investment companies" and corporations that accumulate earnings to avoid U.S. federal income tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●partnerships or other entities or arrangements treated as partnerships for U.S. federal income tax purposes (and investors therein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●tax-exempt organizations or governmental organizations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●persons deemed to sell our common stock under the constructive sale provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●persons who hold or receive our common stock pursuant to the exercise of any employee stock option or otherwise as compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●tax-qualified retirement plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●"qualified foreign pension funds" and entities all of the interests of which are held by qualified foreign pension funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●persons subject to special tax accounting rules as a result of any item of gross income with respect to our common stock being taken into account in an applicable financial statement.

If an entity or arrangement treated as a partnership for U.S. federal income tax purposes holds our common stock, the tax treatment of a partner in the partnership will depend on the status of the partner, the activities of the partnership and certain determinations made at the partner level. Accordingly, partnerships holding our common stock and the partners in such partnerships should consult their tax advisors regarding the U.S. federal income tax consequences to them.

**THIS DISCUSSION IS FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TAX ADVICE. INVESTORS SHOULD CONSULT THEIR TAX ADVISORS WITH RESPECT TO THE APPLICATION OF THE U.S. FEDERAL INCOME TAX LAWS TO THEIR PARTICULAR SITUATIONS AS WELL AS ANY TAX CONSEQUENCES OF THE PURCHASE, OWNERSHIP AND DISPOSITION OF OUR COMMON STOCK ARISING UNDER THE U.S. FEDERAL ESTATE OR GIFT TAX LAWS OR UNDER THE LAWS OF ANY STATE, LOCAL OR NON-U.S. TAXING JURISDICTION OR UNDER ANY APPLICABLE INCOME TAX TREATY.**

**Definition of a Non-U.S. Holder**

For purposes of this discussion, a "Non-U.S. Holder" is any beneficial owner of our common stock that is neither a "U.S. person" nor an entity treated as a partnership for U.S. federal income tax purposes. A U.S. person is any person that, for U.S. federal income tax purposes, is or is treated as any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●an individual who is a citizen or resident of the U.S.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●a corporation or entity treated as a corporation that is created or organized under the laws of the U.S., any state thereof, or the District of Columbia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●an estate, the income of which is subject to U.S. federal income tax regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●a trust that (i) is subject to the primary supervision of a U.S. court and the control of one or more "United States persons" (within the meaning of Section 7701(a)(30) of the Code), or (ii) has a valid election in effect to be treated as a United States person for U.S. federal income tax purposes.

**Distributions**

As described in the section titled "Dividend Policy," we do not currently intend to pay any cash dividends on our capital stock in the foreseeable future. However, if we make distributions of cash or property on our common stock, such distributions will constitute dividends for U.S. federal income tax purposes to the extent paid from our current or accumulated earnings and profits, as determined under U.S. federal income tax principles. Amounts not treated as dividends for U.S. federal income tax purposes will constitute a return of capital and first be applied against and reduce a Non-U.S. Holder's adjusted tax basis in its common stock, but not below zero. Any excess will be treated as capital gain and will be treated as described below under "—Sale or Other Taxable Disposition."

Subject to the discussions below on effectively connected income, backup withholding and the Foreign Account Tax Compliance Act, or FATCA, dividends paid to a Non-U.S. Holder of our common stock will be subject to U.S. federal withholding tax at a rate of 30% of the gross amount of the dividends (or such lower rate specified by an applicable income tax treaty, provided the Non-U.S. Holder furnishes a valid IRS Form W-8BEN or W-8BEN-E (or other applicable documentation) certifying qualification for the lower treaty rate). A Non-U.S. Holder that does not timely furnish the required documentation, but that qualifies for a reduced treaty rate, may obtain a refund of any excess amounts withheld by timely filing an appropriate claim for refund with the IRS. Non-U.S. Holders should consult their tax advisors regarding their entitlement to benefits under any applicable income tax treaty.

If dividends paid to a Non-U.S. Holder are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the U.S. (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment or fixed base in the U.S. to which such dividends are attributable), the Non-U.S. Holder will be exempt from the U.S. federal withholding tax described above. To claim the exemption, the Non-U.S. Holder must furnish to the applicable withholding agent a valid IRS Form W-8ECI, certifying that the dividends are effectively connected with the Non-U.S. Holder's conduct of a trade or business within the U.S..

Any such effectively connected dividends generally will be subject to U.S. federal income tax on a net income basis at the regular graduated rates. A Non-U.S. Holder that is a corporation also generally will be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on its effectively connected earnings and profits attributable to such dividends, as adjusted for certain items. Non-U.S. Holders should consult their tax advisors regarding any applicable tax treaties that may provide for different rules.

**Sale or Other Taxable Disposition**

Subject to the discussions below regarding backup withholding and FATCA, a Non-U.S. Holder will not be subject to U.S. federal income tax on any gain realized upon the sale or other taxable disposition of our common stock unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the gain is effectively connected with the Non-U.S. Holder's conduct of a trade or business within the U.S. (and, if required by an applicable income tax treaty, the Non-U.S. Holder maintains a permanent establishment or fixed base in the U.S. to which such gain is attributable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●the Non-U.S. Holder is a nonresident alien individual present in the U.S. for 183 days or more during the taxable year of the disposition and certain other requirements are met; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;●our common stock constitutes a U.S. real property interest, or USRPI, by reason of our status as a U.S. real property holding corporation, or USRPHC, for U.S. federal income tax purposes.

Gain described in the first bullet point above generally will be subject to U.S. federal income tax on a net income basis at the regular graduated rates. A Non-U.S. Holder that is a corporation also generally will be subject to a branch profits tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty) on its effectively connected earnings and profits attributable to such gain, as adjusted for certain items.

Gain described in the third bullet point above will be subject to U.S. federal income tax at a rate of 30% (or such lower rate specified by an applicable income tax treaty), which may be offset by U.S. source capital losses of the Non-U.S. Holder (even though the individual is not considered a resident of the U.S.), provided the Non-U.S. Holder has timely filed U.S. federal income tax returns with respect to such losses.

With respect to the third bullet point above, we believe we currently are not, and do not anticipate becoming, a USRPHC. However, because the determination of whether we are a USRPHC depends on the fair market value of our USRPIs relative to the fair market value of our non-U.S. real property interests and our other business assets, there can be no assurance we currently are not a USRPHC or will not become one in the future. Even if we are or were to become a USRPHC, gain arising from the sale or other taxable disposition by a Non-U.S. Holder of our common stock will not be subject to U.S. federal income tax if our common stock is "regularly traded," as defined by applicable Treasury Regulations, on an established securities market, and such Non-U.S. Holder owned, actually and constructively, 5% or less of our common stock throughout the shorter of the five-year period ending on the date of the sale or other taxable disposition or the Non-U.S. Holder's holding period. If we are a USRPHC and either our common stock is not regularly traded on an established securities market or a Non-U.S. Holder holds more than 5% of our common stock, actually or constructively, during the applicable testing period, such Non-U.S. Holder will generally be taxed on any gain in the same manner as gain that is effectively connected with the conduct of a U.S. trade or business, except that the branch profits tax generally will not apply.

Non-U.S. Holders should consult their tax advisors regarding any applicable income tax treaties that may provide for different rules.

**Information Reporting and Backup Withholding**

Payments of dividends on our common stock will not be subject to backup withholding, provided the holder either certifies its non-U.S. status by furnishing a valid IRS Form W-8BEN, W-8BEN-E or W-8ECI or otherwise establishes an exemption. However, information returns are required to be filed with the IRS in connection with any dividends on our common stock paid to the Non-U.S. Holder, regardless of whether any tax was actually withheld. In addition, proceeds of the sale or other taxable disposition of our common stock within the U.S. or conducted through certain U.S.-related brokers generally will not be subject to backup withholding or information reporting, if the applicable withholding agent receives the certification described above or the holder otherwise establishes an exemption. Proceeds of a disposition of our common stock conducted through a non-U.S. office of a non-U.S. broker that does not have certain enumerated relationships with the U.S. generally will not be subject to backup withholding or information reporting.

Copies of information returns that are filed with the IRS also may be made available under the provisions of an applicable treaty or agreement to the tax authorities of the country in which the Non-U.S. Holder resides or is established.

Backup withholding is not an additional tax. Any amounts withheld under the backup withholding rules may be allowed as a refund or a credit against a Non-U.S. Holder's U.S. federal income tax liability, provided the required information is timely furnished to the IRS.

**Additional Withholding Tax on Payments Made to Foreign Accounts**

Withholding taxes may be imposed under Sections 1471 to 1474 of the Code (commonly referred to as FATCA) on certain types of payments made to non-U.S. financial institutions and certain other non-U.S. entities. Specifically, a 30% withholding tax may be imposed on dividends on, or (subject to the proposed Treasury Regulations discussed below) gross proceeds from the sale or other disposition of, our common stock paid to a "foreign financial institution" or a "non-financial foreign entity" (each as defined in the Code), unless (i) the foreign financial institution undertakes certain diligence and reporting obligations, (ii) the non-financial foreign entity either certifies it does not have any "substantial United States owners" (as defined in the Code) or furnishes identifying information regarding each substantial United States owner or (iii) the foreign financial institution or non-financial foreign entity otherwise qualifies for an exemption from these rules. If the payee is a foreign financial institution and is subject to the diligence and reporting requirements in clause (i) above, it must enter into an agreement with the U.S. Department of the Treasury requiring, among other things, that it undertakes to identify accounts held by certain "specified United States persons" or "United States-owned foreign entities" (each as defined in the Code), annually report certain information about such accounts, and withhold 30% on certain payments to non-compliant foreign financial institutions and certain other account holders. Foreign financial institutions located in jurisdictions that have an intergovernmental agreement with the U.S. governing FATCA may be subject to different rules.

Under the applicable Treasury Regulations and administrative guidance, withholding under FATCA generally applies currently to payments of dividends on our common stock. While withholding under FATCA would have applied also to payments of gross proceeds from the sale or other disposition of our common stock on or after January 1, 2021, proposed Treasury Regulations eliminate FATCA withholding on payments of gross proceeds entirely. Taxpayers generally may rely on these proposed Treasury Regulations until final Treasury Regulations are issued.

Prospective investors should consult their tax advisors regarding the potential application of withholding under FATCA to their investment in our common stock.

**SELLING SECURITY HOLDERS**

This prospectus covers the sale by the selling security holders of up to 55,555,555 shares of common stock.

The exercise price of our common stock issuable upon exercise of the Purchase Warrants will be subject to adjustment in the event of any stock dividends and splits, reverse stock split, recapitalization, reorganization or similar transaction, as described therein.

Although we have not entered into any registration rights agreement or granted any registration rights in connection with the issuance and sale of the units in the private placement, we have elected to register for resale the shares of common stock issued in the private placement and the shares of common stock issuable upon exercise of the Purchase Warrants.

**Selling Security Holder Table**

This prospectus covers the sale by the selling security holders of up to an aggregate of 55,555,555 shares of common stock. We are registering the shares of common stock in order to permit the selling security holders to offer the shares for resale from time to time. The selling security holders have not had any material relationship with us within the past three years.

The table below lists the selling security holders and other information regarding the beneficial ownership of the shares of common stock held by each of the selling security holders. The second column lists the number of shares of common stock beneficially owned by the selling security holders, based on their respective ownership of shares of common stock as of August 19, 2025.

The third column lists the shares of common stock being offered by this prospectus by the selling security holders. The selling security holders may sell all, some or none of their shares in this offering. See "Plan of Distribution."

The fourth column assumes the sale of all of the shares of common stock offered by the selling security holders under this prospectus.

Except as disclosed in the footnotes to the table below, each of the selling security holders has represented to us that it is not a broker-dealer, or affiliated with or associated with a broker-dealer, registered with the SEC or designated as a member of the Financial Industry Regulatory Authority. The shares of common stock being offered under this prospectus may be offered for sale from time to time during the period the registration statement of which this prospectus is a part remains effective, by or for the accounts of the selling security holders listed below.

Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. To our knowledge, except as indicated by footnote, and subject to community property laws where applicable, the persons named in the table below have sole voting and investment power with respect to all shares of common stock shown as beneficially owned by them. Except as indicated by footnote, all shares of common stock underlying derivative securities, if any, that are currently exercisable or convertible or are scheduled to become exercisable or convertible for or into shares of common stock within 60 days after the date of the table are deemed to be outstanding for the purpose of calculating the percentage ownership of each listed person or group but are not deemed to be outstanding as to any other person or group.

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| | | | |
|:---|:---|:---|:---|
| | | | **Shares of<br> Common Stock<br> Beneficially Owned<br> After Offering (1)** |
| **Name of**<br>**Beneficial Owner** | **Shares of<br> Common Stock<br> Beneficially<br> Owned**<br>**Prior to Offering** | **Maximum Number of shares of Common Stock to be Sold Pursuant to this**<br>**Prospectus** | **Number** |
|  |  |  | % |
|  |  |  | % |

---

(\*)Indicates beneficial ownership of less than 1%.

(1)Assumes all shares being offered under this prospectus are sold. The percentage of beneficial ownership after the offering is based on 175,750,130 shares of common stock, consisting of shares of common stock outstanding as of August 13, 2025.

**PLAN OF DISTRIBUTION**

We are registering the shares of common stock to permit the resale of these shares by the selling security holders after the date of this prospectus. We will not receive any proceeds from the sale of the shares by the selling security holders. We will bear all fees and expenses incident to our obligation to register the shares of common stock.

The selling security holders will offer and sell the shares of common stock at a fixed price of $x.xx per share until our common stock is quoted on an established public trading market, at which time the shares may be sold at prevailing market prices or privately negotiated prices. However, there is currently no established public trading market for our common stock, and we cannot assure you that a significant market will develop.

The selling security holders may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from time to time directly to purchasers or through agents designated from time to time. In connection with the sales, the selling security holders may enter into agreements with broker-dealers or agents who may receive commissions or fees from the selling security holders or the purchasers of the shares.

The shares of common stock may be sold by the selling security holders using one or more of the following methods:

-Direct Sales: Sales made directly to purchasers without the involvement of underwriters or agents.

-Brokered Transactions: Sales effected through agents who solicit or receive offers to purchase the shares.

Under the securities laws of certain states, the shares of common stock may be sold in those states only through registered or licensed brokers or dealers. In addition, in certain states the shares may not be sold unless they have been registered or qualified for sale in the state or an exemption from registration or qualification is available and is complied with.

We have advised the selling security holders that the anti-manipulation provisions of Regulation M under the Securities Exchange Act of 1934, as amended, may apply to their sales of shares in the market. We have agreed to use commercially reasonable efforts to keep the registration statement of which this prospectus is a part effective during the period the selling security holders are offering and selling the shares covered by this prospectus.

There can be no assurance that any selling security holder will sell any or all of the shares of common stock registered pursuant to the registration statement.

**LEGAL MATTERS**

The validity of the shares of common stock offered by this prospectus will be passed upon for us by Bennett Jones LLP in Vancouver, British Columbia, Canada.

**EXPERTS**

The financial statements included in this prospectus and the registration statement have been audited by M&K CPAS, an independent registered public accounting firm, as stated in their report appearing herein and elsewhere in the registration statement which report expresses an unqualified opinion on the financial statements. Such financial statements have been so included in reliance upon the report of such firm given upon their authority as experts in accounting and auditing.

**WHERE YOU CAN FIND MORE INFORMATION**

This prospectus, which constitutes a part of the registration statement on Form S-1 filed with the SEC, does not contain all of the information set forth in the registration statement and the exhibits and schedules thereto. Accordingly, we refer you to the registration statement, including the exhibits and schedules thereto, for further information about us and the shares of common stock to be sold in this offering. Statements or summaries in this prospectus as to the contents of any contract or other document referred to in this prospectus are not necessarily complete and, where that contract or document is filed as an exhibit to the registration statement, each statement or summary is qualified in all respects by reference to the exhibit to which the reference relates. Our filings with the SEC, including the registration statement, are also available to you for free on the SEC's internet website at www.sec.gov.

Upon completion of this offering, we will become subject to the informational and reporting requirements of the Exchange Act and, in accordance with those requirements, will file periodic reports, proxy and information statements and other information with the SEC. You will be able to inspect and copy these periodic reports, proxy and information statements and other information at the addresses set forth above. In addition, you will be able to request a copy of any of our periodic reports filed with the SEC at no cost, by writing or telephoning us at the following address:

Investor Relations

Leef Brands, Inc.

Suite 2500 Park Place

666 Burrard Street

Vancouver, BC V6C 2X8

Canada

(416) 797-6455

We also currently intend to maintain an internet website at https://www.leefbrands.com following the completion of this offering. Information contained on or accessible through our website is not part of this prospectus.

**INDEX TO FINANCIAL STATEMENTS**

**Item 8. Financial Statements and Supplementary Data.**

**LEEF BRANDS, INC.** 

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| | |
|:---|:---|
|  | Page(s) |
| [Consolidated Balance Sheets - As of June 30, 2025 (unaudited) and December 31, 2024 (audited)](#sd_001) | F-2 |
| [Consolidated Statements of Operations - For the three and six months ended June 30, 2025, and 2024 (unaudited)](#sd_002) | F-3 |
| [Consolidated Statements of Changes in Stockholders' (Deficit) Equity - For the six months ended June 30, 2025, and 2024 (unaudited)](#sd_003) | F-4 - F-5 |
| [Consolidated Statements of Cash Flows - for the nine months ended March 31, 2025, and 2024 (unaudited)](#sd_004) | F-6 |
| [Notes to Consolidated Financial Statements](#sd_005) | F-7 |

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| | |
|:---|:---|
|  | Page(s) |
| [Report of Independent Registered Public Accounting Firm](#Fin_006) (PCAOB ID No. 2738) | F-35 |
| [Consolidated Balance Sheets - As of December 31, 2024 and 2023 (audited)](#Fin_007) | F-37 |
| [Consolidated Statements of Operations - For the years ended December 31, 2025, and 2024 (audited)](#Fin_008) | F-38 |
| [Consolidated Statements of Changes in Stockholders' (Deficit) Equity - For the years ended December 31, 2025, and 2024 (audited)](#Fin_009) | F-39 - F-40 |
| [Consolidated Statements of Cash Flows - For the years ended December 31, 2025, and 2024 (audited)](#Fin_010) | F-41 |
| [Notes to Consolidated Financial Statements](#Fin_011) | F-42 |

---

**LEEF BRANDS, INC.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
|  | (Unaudited) | (Audited) |
| ASSETS |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $887891 | $2731979 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 2217770 | 2394542 |
| &nbsp;&nbsp;&nbsp;Inventory | 4346475 | 4222917 |
| &nbsp;&nbsp;&nbsp;Prepaid and deposits | 1135672 | 621527 |
| &nbsp;&nbsp;&nbsp;Deferred costs and other current assets | 505277 | 507186 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 9093085 | 10478151 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 25975460 | 26042616 |
| &nbsp;&nbsp;&nbsp;Right of use assets, net | 1978458 | 2439888 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 2458151 | 2232153 |
| &nbsp;&nbsp;&nbsp;Assets held for sale | 1445483 | 1445483 |
| Other assets | 321091 | 338685 |
| Total assets | $41271728 | $42976976 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities | $6937887 | $6613793 |
| &nbsp;&nbsp;&nbsp;Holdback liability |  | 935618 |
| &nbsp;&nbsp;&nbsp;Related party payables | 2981619 | 1488866 |
| &nbsp;&nbsp;&nbsp;Current portion of notes payable | 1798783 | 1337490 |
| &nbsp;&nbsp;&nbsp;Current portion of consideration payable | 500000 | 500000 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, short term | 309608 | 302736 |
| &nbsp;&nbsp;&nbsp;Tax payable | 14004665 | 12836039 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 26532562 | 24014542 |
| Non-current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities, net of current portion | 1852189 | 2282743 |
| &nbsp;&nbsp;&nbsp;Notes payable, net of current | 9813676 | 9246547 |
| &nbsp;&nbsp;&nbsp;Convertible debentures, net of current and discount | 10369541 | 9976000 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, long term | 4902786 | 9007907 |
| &nbsp;&nbsp;&nbsp;Deferred tax liability | 883181 | 883181 |
| Total liabilities | 54353935 | 55410920 |
| Stockholders' equity (deficit) |  |  |
| &nbsp;&nbsp;&nbsp;Common stock; no par value; unlimited shares authorized; 175,442,330 and 172,984,299 shares issued and outstanding as of June 30, 2025, and December 31, 2024, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 111669530 | 109650027 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (336879) | (336536) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (124414858) | (121747435) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' deficit | (13082207) | (12433944) |
| Total liabilities and stockholders' equity (deficit) | $41271728 | $42976976 |

---

The accompanying notes are an integral part of these unaudited consolidated financial statements.

**LEEF BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)**

**(Unaudited)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | For the three months ended | For the three months ended | For the six months ended | For the six months ended |
|  | June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 |
| Net revenue | $8691656 | $7916653 | $18089918 | $15742000 |
| Cost of sales | 6595481 | 5226760 | 13507145 | 9928058 |
| &nbsp;&nbsp;&nbsp;Gross profit | 2096175 | 2689893 | 4582773 | 5813942 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Advertising and promotion | 62061 | 111943 | 201224 | 245841 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 569278 | 409067 | 1104515 | 835548 |
| &nbsp;&nbsp;&nbsp;Wages and salaries | 1943497 | 1226217 | 3824256 | 2212994 |
| &nbsp;&nbsp;&nbsp;Office and general expenses | 840023 | 432500 | 1694871 | 794618 |
| &nbsp;&nbsp;&nbsp;License and compliance | 248035 | 37081 | 375936 | 72327 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 10570 | 11144 | 19198 | 12971 |
| &nbsp;&nbsp;&nbsp;Legal and professional fees | 338269 | 326164 | 826207 | 557545 |
| &nbsp;&nbsp;&nbsp;Insurance expenses | 121780 | 104100 | 221352 | 221682 |
| &nbsp;&nbsp;&nbsp;Excise and other taxes | 59142 | 73414 | 107580 | 100036 |
| &nbsp;&nbsp;&nbsp;Lease expenses | 183333 | 170936 | 341735 | 332436 |
| &nbsp;&nbsp;&nbsp;Other losses |  | (25093) |  | (17281) |
| &nbsp;&nbsp;&nbsp;Travel and business development | 93346 | 128750 | 146603 | 183977 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 4469334 | 3006223 | 8863477 | 5552694 |
| Income (loss) from operations | (2373159) | (316330) | (4280704) | 261248 |
| Other (income) expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 579387 | 2658175 | 1171889 | 4125387 |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of debt |  | 2883245 |  | 2883245 |
| &nbsp;&nbsp;&nbsp;Change in fair value derivative liability | (566681) | (1147371) | (4105121) | (259391) |
| &nbsp;&nbsp;&nbsp;Other expense | (60557) | - | (9053) | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other (income) expense | (47851) | 4394049 | (2942285) | 6749241 |
| Net income (loss) before provision for income taxes | $(2325308) | $(4710379) | $(1338419) | $(6487993) |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | 607891 | 829093 | 1329004 | 1761309 |
| Net income (loss) and comprehensive income (loss) | $(2933199) | $(5539472) | $(2667423) | $(8249302) |
| Foreign currency translation | 343 | (205292) | 343 | (151794) |
| **Net income (loss) and comprehensive income (loss) attributable to shareholders of Leef Brands, Inc.** | $**(2933542)** | $**(5334180)** | $**(2667766)** | **(8097508)** |
| Earnings (loss) per common share - basic and diluted | $**(0.02)** | $**(0.04)** | $**(0.02)** | $**(0.06)** |
| Weighted average common shares outstanding - basic and diluted | **175442331** | **133009072** | **175085129** | **126128494** |

---

The accompanying notes are an integral part of these unaudited consolidated financial statements.

**LEEF BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**

**For the Six Months Ended June 30, 2025 and 2024**

**(Unaudited)**

***Activity for the Six Months Ended June 30, 2025***

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Common Stock | Common Stock | | | | | | |
|  | Shares | Amount | Additional Paid-In<br>Capital | Accumulated<br>Deficit | Accumulated Other Comprehensive<br>Income | Total equity attributable to shareholders of <br>Leef<br>Brands, Inc. | Non-controlling<br>Interest | Total Stockholders'<br>Equity |
| Balance, December 31, 2024 | 172984299 | $— | $109650027 | $(121747435) | $(336536) | $(12433944) | $&nbsp;&nbsp;&nbsp;&nbsp; - | $(12433944) |
| Net income |  |  |  | (2667423) |  | (2667423) |  | (2667423) |
| Common shares issued for services | 600000 |  | 100000 |  |  | 100000 |  | 100000 |
| Common shares issued for earnout consideration | 1858031 |  | 935618 |  |  | 935618 |  | 935618 |
| Foreign currency translation |  |  |  |  | (343) | (343) |  | (343) |
| Stock compensation expense |  |  | 518297 |  |  | 518297 |  | 518297 |
| Equity based compensation for restricted stock unit grants | - | - | 465588 | - | - | 465588 | - | 465588 |
| Balance, June 30, 2025 | 175442330 | $- | $111669530 | $(124414858) | $(336879) | $(13082207) | $- | $(13082207) |

---

***Activity for the Six Months Ended June 30, 2024***

 ****

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Common Stock | Common Stock | | | | | | |
|  | Shares | Amount | Additional Paid-In<br>Capital | Accumulated<br>Deficit | Accumulated Other Comprehensive<br>Income | Total equity attributable to shareholders of Leef<br>Brands, Inc. | Non-controlling<br>Interest | Total Stockholders'<br>Equity |
| Balance, December 31, 2023 | 118380930 | $&nbsp;&nbsp;&nbsp;&nbsp;- | $94667939 | $(97125921) | $(343850) | $(2801832) | $3649489 | $847657 |
| Net loss |  |  |  | (8249302) |  | (8249302) |  | (8249302) |
| Common shares issued for cash | 2161558 |  | 429133 |  |  | 429133 |  | 429133 |
| Common shares issued for services | 1500000 |  | 333333 |  |  | 333333 |  | 333333 |
| Foreign currency translation |  |  |  |  | (151794) | (151794) |  | (151794) |
| Common shares issued for conversion of notes payable and debentures | 22395498 |  | 7083853 |  |  | 7083853 |  | 7083853 |
| Stock compensation expense |  |  | 351964 |  |  | 351964 |  | 351964 |
| Equity based compensation for restricted stock unit grants | - | - | 57500 | - | - | 57500 | - | 57500 |
| Balance, June 30, 2024 | 144438436 | $- | $102923722 | $105375223) | $(495644) | $(2947145) | $3649489 | $702344 |

---

The accompanying notes are an integral part of these unaudited consolidated financial statements.

**LEEF BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

**(Unaudited)**

---

| | | |
|:---|:---|:---|
|  | For the six months ended | For the six months ended |
|  | June 30, 2025 | June 30, 2024 |
| Cash Flows from Operating Activities |  |  |
| &nbsp;&nbsp;&nbsp;Net income (loss) and comprehensive income (loss) | $(2667423) | $(8249302) |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1104515 | 835548 |
| &nbsp;&nbsp;&nbsp;Share based compensation | 1083885 | 742797 |
| &nbsp;&nbsp;&nbsp;Lease cost, net of repayment | 37749 | 43738 |
| &nbsp;&nbsp;&nbsp;Amortization and extinguishment of debt discounts | 498912 | 5834114 |
| &nbsp;&nbsp;&nbsp;Loss (gain) on crypto assets | (40337) |  |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (4105121) | (259391) |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of convertible debentures |  | 2935028 |
| Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 176772 | (1178201) |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits | (514145) | (306949) |
| &nbsp;&nbsp;&nbsp;Inventory | (173981) | (434153) |
| &nbsp;&nbsp;&nbsp;Other assets | 19502 |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 885135 | (1606000) |
| &nbsp;&nbsp;&nbsp;Related party payables | 492523 | 43538 |
| &nbsp;&nbsp;&nbsp;Tax payable | 1168626 | 1761309 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (2033388) | 162076 |
| Cash Flows from Investing Activities |  |  |
| &nbsp;&nbsp;&nbsp;Equipment purchase | (487880) | (3263968) |
| &nbsp;&nbsp;&nbsp;Investment in intangible asset | (300000) |  |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of crypto currency | 403622 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (384258) | (3263968) |
| Cash Flows from Financing Activities |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of common shares |  | 429133 |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of notes-related party | 749630 |  |
| &nbsp;&nbsp;&nbsp;Repayment of notes | (165729) | (52889) |
| &nbsp;&nbsp;&nbsp;Cash repayments to related party note payable | (10000) |  |
| &nbsp;&nbsp;&nbsp;Loan advances to a third party | - | (541781) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 573901 | (165537) |
| Net decrease in Cash | (1843745) | (3267429) |
| &nbsp;&nbsp;&nbsp;Effect of foreign exchange translation | (343) | (151794) |
| Cash, beginning of period | 2731979 | 6414587 |
| Cash, end of period | $887891 | $2995364 |
| Supplemental disclosure of cash flow information |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $43204 | $20900 |
| &nbsp;&nbsp;&nbsp;Cash paid for income tax | $- | $- |
| Non-cash investing and financing transactions |  |  |
| &nbsp;&nbsp;&nbsp;Financed equipment | $433112 | $- |
| &nbsp;&nbsp;&nbsp;Shares issued for earnout consideration | $935618 | $- |
| &nbsp;&nbsp;&nbsp;Non-cash note repayment | $50423 | $- |
| &nbsp;&nbsp;&nbsp;Reclass of accrued interest | $67500 | $- |
| &nbsp;&nbsp;&nbsp;Related party note issued in exchange for crypto currency | $405650 | $- |
| &nbsp;&nbsp;&nbsp;Related party note additions | $245050 | $- |
| &nbsp;&nbsp;&nbsp;Sale of note payable to related party |  | $472000 |
| &nbsp;&nbsp;&nbsp;Conversion of convertible debentures and notes payable | $- | $7083852 |

---

The accompanying notes are an integral part of these unaudited consolidated financial statements.

**LEEF BRANDS, INC.**

**Notes to the Consolidated Financial Statements**

**For the six months ended June 30, 2025**

**1.** **Nature and Continuance of Operations** 

Leef Brands Inc. (the "Company") (Formerly Icanic Brands Company Inc.) was incorporated on September 15, 2011, under the laws of the province of British Columbia and is registered extra-provincially under the laws of Ontario. The Company is a cannabis branded products manufacturer based in California. The Company is a public company whose common shares are listed for trading on the Canadian Securities Exchange ("CSE") under the symbol "LEEF" which became effective December 7, 2022. The head office of the Company is located at Suite 2500 Park Place, 666 Burrard Street, Vancouver, BC V6C 2X8.

These consolidated financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realization of assets and discharge of liabilities in the normal course of business. As of June 30, 2025, the Company has yet to generate a positive net income. The Company is actively seeking additional sources of financing. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, within one year of the issuance of the financial statements. Management is aware, in making its assessment, of uncertainties related to events or conditions that may cast substantial doubt upon the entity's ability to continue as a going concern that these uncertainties are material and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore to realize its assets and discharge its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying consolidated financial statements. See liquidity section of "*Note 2 – Basis of Presentation*" for further discussion on liquidity needs.

*Reverse recapitalization*

On April 20, 2022, the Company acquired all of the common stock of LEEF Holdings, Inc. ("LEEF") pursuant to a merger agreement dated January 21, 2022, among the Company, its wholly-owned subsidiary, Icanic Merger Sub, Inc. and LEEF. The Company issued common shares, which at the time were subject to a contractual hold period in accordance with the terms of the merger agreement, with an initial one-eighth of the shares received to be released on the one-year anniversary of closing and the remaining shares to be released in equal one-eighth installments every three months thereafter.

*Share Consolidation Plan*

On October 29, 2024, the Company announced a 10:1 share consolidation plan. The Consolidation has consolidated the Company's issued and outstanding common shares based on ten pre-consolidation shares for one post-consolidation share. The Consolidation aims to improve the Company's capital structure, increase its attractiveness to institutional investors, and provide a more stable trading platform. Upon completion of the Consolidation, the Company had approximately 162,762,651 common shares issued and outstanding, subject to rounding adjustments. The Consolidation took effect November 18, 2024. Accordingly, all periods presented have been adjusted retroactively to reflect the 10:1 share consolidation plan.

**2.** **Basis of Presentation** 

**Statement of compliance**

These consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The policies set out below have been consistently applied to all periods presented unless otherwise noted.

**Liquidity and going concern**

Historically, the Company's primary source of liquidity has been its operations, capital contributions made by equity investors and debt issuances. The Company is currently meeting its current operational obligations as they become due from its current working capital and from operations. However, the Company has sustained losses since inception and may require additional capital in the future. As of and for the six months ended June 30, 2025, the Company had an accumulated deficit of $124,414,858, a net loss and comprehensive loss attributable to the Company of $2,667,423, and net cash used in operating activities of $2,033,388. Such uncertainties related to events and conditions raise substantial doubt about the Company's ability to continue as a going concern.

The Company is generating cash from revenues and deploying its capital reserves to acquire and develop assets capable of producing additional revenues and earnings over both the immediate and near term. Capital reserves are primarily being utilized for capital expenditures, facility improvements, product development and marketing.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations associated with financial liabilities. The Company manages liquidity risk through the management of its capital structure. The Company's approach to managing liquidity is to ensure that it will have sufficient liquidity to settle obligations and liabilities when due.

**Basis of presentation and measurement**

These consolidated financial statements have been prepared on a historical cost basis except for derivative financial instruments, which are measured at fair value through earnings, as explained in the accounting policies below. Historical costs are generally based upon the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

**Functional currency**

All figures presented in the consolidated financial statements are reflected in United States dollars; however, the functional currency of the Company includes Canadian dollars and United States dollars. The Company's subsidiaries functional currency is the United States dollar.

Transactions in foreign currencies are initially recorded in the Company's functional currency at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange at the end of each reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when fair value is determined.

All gains and losses on translation of these foreign currency transactions are included in earnings.

On consolidation, the assets and liabilities of foreign operations reported in their functional currencies are translated into United States dollars, the Company's presentation currency, at period-end exchange rates. Income and expenses, and cash flows of foreign operations are translated into United States dollars using average exchange rates. Exchange differences resulting from translating foreign operations are recognized in accumulated other comprehensive loss.

**Basis of consolidation**

These consolidated financial statements as of June 30, 2025 and December 31, 2024 include the accounts of the Company, its wholly-owned subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly and indirectly, to govern the financial and operating policies of an entity and be exposed to the variable returns from its activities. The financial statements of subsidiaries are included in the condensed interim consolidated financial statements from the date that control commences until the date that control ceases.

The following is a list of the Company's wholly-owned and partially owned operating subsidiaries:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Consolidated Subsidiary or Entity** | **Purpose** | **Jurisdiction** | **Attributable**<br> **Interest** |
| Aya Biosciences, Inc. | (1) Pharmaceutical | US | 100% |
| Anderson Development SB, LLC. | Cultivation | US | 100% |
| Paleo Paw Corp. | CBD Wellness | US | 100% |
| Payne Distribution, LLC. | Distribution | US | 100% |
| LEEF Brands, Inc. | Holding Company | Canada | 100% |
| LEEF Holdings, Inc. | Holding Company | US | 100% |
| Preferred Brand LLC. | Manufacturing | US | 100% |
| Seven Zero Seven, LLC. | Manufacturing | US | 100% |
| LEEF Management, LLC. | Payroll | US | 100% |
| 1127466 B.C. Ltd. | Real Estate | Canada | 100% |
| 1200665 B.C. Ltd. | Real Estate | Canada | 100% |
| SCRCB, LLC. | Cultivation | US | 100% |
| The Leaf at 73740, LLC. | Dispensary | US | 100% |
| Green Cross Nevada LLC. | Manufacturing | US | 100% |
| V6E Holdings, LLC. | Manufacturing | US | 100% |
| LEEF Labs NY LLC. | Manufacturing | US | 100% |
| LEEF Labs NJ, LLC, | Manufacturing | US | 100% |
| Eaton Processing LLC | Manufacturing | US | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *As of June 30, 2025, the Company owned a 100 % interest in Aya Biosciences, Inc. As of June 30, 2024, the Company owned a 55.65 % interest in Aya Biosciences, Inc.* 

All inter-company transactions and balances have been eliminated in the consolidated financial statement presentation.

**Recently Adopted Accounting Standards**

*ASU 2023-07*

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve the financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities. The Company adopted ASU 2023-07 beginning with its 2024 annual report.

*ASU 2023-08*

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The ASU requires that crypto assets meeting certain criteria be measured at fair value, with changes in fair value recognized in net income each reporting period. The Company adopted ASU 2023-08 effective January 1, 2024, on a prospective basis.

Upon adoption, crypto assets are measured at fair value, with changes in fair value recorded within other income (expense) in the consolidated statements of operations. Adoption of this standard did not result in a cumulative-effect adjustment to the opening balance of retained earnings as of the adoption date. Disclosures required by the ASU, including information about significant crypto asset holdings and changes therein, have been included in Note 7 – Intangible Asset to the consolidated financial statements.

*ASU 2023-09*

In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to provide enhancements to annual income tax disclosures. The standard will require more detailed information in the rate reconciliation table and for income taxes paid, among other enhancements. The standard is effective for years beginning after December 15, 2024 and early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements.

**3.** **Significant Accounting Policies** 

The preparation of the consolidated financial statements requires that the Company's management make judgments and estimates of effects of uncertain future events on the carrying amounts of the Company's assets and liabilities at the end of the reporting period. Actual future outcomes could differ from present estimates and judgments, potentially having material future effects on the Company's consolidated financial statements. Estimates are reviewed on an ongoing basis and are based on historical experience and other facts and circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively.

The significant accounting policies used by the Company are as follows:

**Accounts receivable** 

Accounts receivable are recognized initially at fair value and subsequently measured at amortized cost, less any provisions for impairment. Financial assets measured at amortized cost are assessed for impairment at the end of each reporting period. Impairment provisions are estimated using the expected credit loss impairment model where any expected future credit losses are provided for, irrespective of whether a loss event has occurred at the reporting date. Estimates of expected credit losses take into account the Company's collection history, deterioration of collection rates during the average credit period, as well as observable changes in and forecasts of future economic conditions that affect default risk. Where applicable, the carrying amount of a trade receivable is reduced for any expected credit losses through the use of an allowance for doubtful accounts ("AFDA") provision. Changes in the AFDA provision are recognized in the consolidated statement of operations and comprehensive income (loss). When the Company determines that no recovery of the amount owing is possible, the amount is deemed irrecoverable and the financial asset is written off. As of June 30, 2025 the Company recorded an allowance for doubtful accounts of $1,163,552 (December 31, 2024 - $1,144,531).

**Inventory**

Inventory is valued at the lower of cost and net realizable value. The Company's inventory is comprised of cannabis related products and derivatives. The cost of inventory is calculated using the weighted average method and comprises all costs of purchase necessary to bring the goods to sale. Net realizable value represents the estimated selling price for products sold in the ordinary course of business less the estimated costs necessary to make the sale. Cost of cannabis biomass is comprised of initial third-party acquisition costs, plus analytical testing costs. Costs of extracted cannabis oil inventory are comprised of initial acquisition cost of the biomass and all direct and indirect processing costs including labor related costs, consumables, materials, packaging supplies and analytical testing costs. Packaging and supplies are initially valued at cost and subsequently at the lower of cost and net realizable value.

Management uses the most reliable evidence available in determining the net realizable value of inventories. Actual selling prices may differ from estimates, based on market conditions at the time of sale. Allowances are made against obsolete or damaged inventory and charged to cost of sales. As of June 30, 2025 and December 31, 2024, the Company recorded a reserve inventory in the amount of $108,111 and $143,115, respectively.

**Financial instruments** 

The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers all related factors of the asset by market participants in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.

The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels, and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and

Level 3 – Inputs for the asset or liability that are not based on observable market data.

For further details, see Note 15 – Financial Instruments and Financial Risk Management

**Property and equipment** 

The Company records property and equipment at cost less accumulated amortization and accumulated impairment losses. It recognizes amortization to write off the cost of assets less their residual values over their useful lives. The depreciation rates applicable to each category of property and equipment are as follows:

---

| | |
|:---|:---|
| Buildings | 15 – 20 years |
| Office furniture and software | 3 – 5 years |
| Machinery and equipment | 10 years |
| Vehicles | 8 years |
| Construction in progress | Not depreciated |
| Leasehold improvements | Shorter of lease term or economic life |

---

An item of property and equipment is de-recognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in income (loss) from operations. Where an item of property and equipment and deferred costs consist of major components with different useful lives, the components are accounted for as separate items of property and equipment and deferred expenditures. Expenditures incurred to replace a component of an item of property and equipment that is accounted for separately, including major inspection and overhaul expenditures, are capitalized.

**Goodwill** 

Goodwill represents the excess of the purchase price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets acquired. Goodwill is allocated to the reporting unit or group of reporting units which are expected to benefit from the synergies of the combination. Goodwill is not subject to amortization.

The goodwill balance is assessed for impairment annually or when facts and circumstances indicate that it is impaired. Goodwill is tested for impairment at a reporting unit level by comparing the carrying value to the recoverable amount, which is determined as the of fair value less costs of disposal. Any excess of the carrying amount over the recoverable amount is the impaired amount. The recoverable amount estimates are categorized as Level 3 according to the fair value hierarchy. Impairment charges are recognized in the consolidated statements of operations and comprehensive income (loss). Goodwill is reported at cost less any accumulated impairment. Goodwill impairments are not reversed. As of December 31, 2024, the Company determined that its remaining goodwill balance of $1,567,485 was fully impaired.

**Intangible assets** 

The Company's intangible assets consist of trademarks and licenses. Intangible assets acquired are measured on initial recognition at cost, while the cost of intangible assets acquired in a business combination is initially recorded at their fair values as at the date of acquisition. It recognizes amortization to write off the cost of assets less their residual values over their useful lives, using certain methods and rates. The intangible assets as of June 30, 2025 and December 31, 2024 were a trademark and license which have been determined to have a 10-year useful life.

An intangible asset is derecognized on disposal or when no future economic benefits are expected from use or disposal. Any gain or loss arising from the derecognition of an intangible asset is measured as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in income (loss) from operations. Following initial recognition, intangible assets with indefinite useful lives are carried at cost less accumulated amortization and any accumulated impairment losses.

**Digital assets**

Effective January 1, 2024, the Company adopted ASU 2023-08, *Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets*. Crypto assets are initially recorded at cost, including any transaction fees. This update requires entities to subsequently measure certain crypto assets at fair value, with changes in fair value recognized in net income each reporting period. Fair value is determined using prices quoted in active markets at the reporting date.

The Company holds digital assets that meet the scope of this guidance. These assets are:

● Intangible in nature

● Do not provide enforceable rights to goods or services

● Are created or reside on a distributed ledger

● Are secured through cryptography

● Are fungible

● Are not issued by the reporting entity or its related parties

**Impairment of long-lived assets** 

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

For the purpose of testing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (reporting unit). An impairment loss is recognized for the amount, if any, by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the asset's fair value less cost to sell. The Company will assess for further impairment on an annual basis or as unexpected events happen.

**Leases** 

The Company assesses whether a contract is or contains a lease at inception of the contract, as well as whether each lease represents an operating lease or a finance lease in accordance with ASC 842, *Leases*. A lease is recognized as a right-of-use asset and corresponding liability at the commencement date. The Company has operating leases for certain facilities. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Each finance lease payment included in the lease liability is apportioned between the repayment of the liability and a finance cost. The finance cost is recognized in "interest expense" in the consolidated statements of operations and comprehensive income (loss) over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability. Lease liabilities represent the net present value of fixed lease payments (including in-substance fixed payments); variable lease payments based on an index, rate, or subject to a fair market value renewal condition; amounts expected to be payable by the lessee under residual value guarantees, the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating the lease, if it is probable that the lessee will exercise that option.

The Company's lease liability is recognized net of lease incentives receivable. The lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be determined, the lessee's incremental borrowing rate. The period over which the lease payments are discounted is the expected lease term, including renewal and termination options that the Company is reasonably certain to exercise.

Payments associated with short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis in general and administration and sales and marketing expense in the consolidated statements of operations and comprehensive income (loss). Short-term leases are defined as leases with a lease term of 12 months or less.

Variable lease payments that do not depend on an index, rate, or subject to a fair market value renewal condition are expensed as incurred and recognized in costs of goods sold, general and administration or sales and marketing expense, as appropriate given how the underlying leased asset is used, in the consolidated statement of comprehensive loss.

Right-of-use assets are measured at cost, which is calculated as the amount of the initial measurement of lease liability plus any lease payments made at or before the commencement date, any initial direct costs and related restoration costs. The right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the useful life of the underlying asset. The depreciation is recognized from the commencement date of the lease.

**Derivatives**

Derivatives are initially measured at fair value and are subsequently remeasured at fair value. If the transaction price does not equal to fair value at the point of initial recognition, management measures the fair value of each component of the investment and any unrealized gains or losses at inception are either recognized in comprehensive income (loss) or deferred and recognized over the term of the investment, depending on whether the valuation inputs are based on observable market data. The resulting unrealized gain or loss at inception and subsequent changes in fair value are recognized in profit or loss for the period.

The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the Consolidated Balance Sheets as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the Consolidated Statements of Financial Position date. Critical estimates and assumptions used in the model are discussed in "*Note 10 – Derivative Liabilities*".

**Convertible debentures**

Convertible debentures are financial instruments that are accounted for separately dependent on the nature of their components. The identification of such components embedded within a convertible debenture requires significant judgment given that it is based on the interpretation of the substance of the contractual agreement. Where the conversion option has a fixed conversion rate, the financial liability, which represents the obligation to pay coupon interest on the convertible debentures in the future, is initially measured at its fair value and subsequently measured at amortized cost. The residual amount is accounted for as an equity instrument at issuance. Where the conversion option has a variable conversion rate, the conversion option is recognized as a derivative liability measured at fair value. The determination of the fair value is also an area of significant judgment given that it is subject to various inputs, assumptions and estimates including contractual future cash flows, discount rates, credit spreads and volatility.

Fees directly attributable to the transactions are apportioned to the financial liability, derivative liability and equity components in proportion to the allocation of proceeds.

**Additional Paid-In Capital** 

Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects.

Where additional paid-in capital is issued, or received, as non-monetary consideration and the fair value of the asset received or given up is not readily determinable, the fair market value of the shares is used to record the transaction. The fair market value of the shares is based on the trading price of those shares on the appropriate stock exchange on the date of the agreement to issue or receive shares as determined by the board of directors.

**Foreign currency** 

These consolidated financial statements are presented in U.S. dollars, which is also one of the functional currencies of the certain subsidiaries along with Canadian dollars being the functional currency for other subsidiaries. Each subsidiary determines its own functional currency and items included in the financial statements of each subsidiary are measured using that functional currency.

&nbsp;&nbsp;&nbsp;&nbsp;i) Transactions
 and Balances in Foreign Currencies

Foreign currency transactions are translated into the functional currency of the respective entity, using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items at year-end exchange rates are recognized in income (loss) from operations. Non-monetary items measured at historical cost are translated using the exchange rates at the date of the transaction and are not retranslated. Non-monetary items measured at fair value are translated using the exchange rates at the date when fair value was determined.

ii) Foreign operations

On consolidation, the assets and liabilities of foreign operations are translated into U.S. dollars at the exchange rate prevailing at the reporting date and their income statements are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on the translation are recognized in other comprehensive income and accumulated in the foreign currency translation reserve in equity. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognized in earnings and recognized as part of the gain or loss on disposal.

**Income Taxes**

Tax expense recognized in income (loss) from operations comprises the sum of current and deferred taxes not recognized in other comprehensive income or directly in equity.

*Current Tax*

Current tax assets and/or liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from income (loss) from operations in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

*Deferred Tax*

Deferred taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are always provided for in full.

Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority.

Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in net income (loss), except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively.

**Revenue recognition**

The Company generates revenue primarily from the sale of cannabis related activities. The Company uses the following five-step contract-based analysis of transactions to determine if, when and how much revenue can be recognized:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Identify
 the contract with a customer;

2. Identify
 the performance obligation(s) in the contract;

3. Determine
 the transaction price;

4. Allocate
 the transaction price to the performance obligation(s) in the contract; and

5. Recognize
 revenue when or as the Company satisfies the performance obligation(s).

Revenue from the sale of cannabis is generally recognized when control over the goods has been transferred to the customer. Payment for sales is typically due prior to shipment. Payment for wholesale transactions is due within a specified time period as permitted by the underlying agreement and the Company's credit policy upon the transfer of goods to the customer. The Company generally satisfies its performance obligation and transfers control to the customer upon delivery and acceptance by the customer. Revenue is recorded at the estimated amount of consideration to which the Company expects to be entitled.

*Bulk product and white label services revenue*

The Company recognizes revenue from bulk product sales and white label services. Product sales are generally recognized when the Company satisfies the performance obligations and transfers control over the goods to the customer upon delivery and acceptance by the customer. Revenue is recorded at the estimated amount of consideration to which the Company expects to be entitled. Returns are performed when the product does not meet the requested type, concentration, etc. and ordered by the customer. Returns and exchanges are reported and recorded at the same time as revenue transactions.

**Share-based Compensation** 

As part of its remuneration, the Company grants restricted stock units and also stock options and warrants to buy common shares of the Company to its employees. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee, including directors of the Company. The fair value of employee services is determined indirectly by reference to the fair value of the equity instruments granted. This fair value is measured at the grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period.

Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instrument granted or vested if the option vests over a period. This fair value is measured at the grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period.

All share-based remuneration is ultimately recognized as an expense in the consolidated statements of operations and comprehensive income (loss) with a corresponding credit to contributed surplus. Upon exercise of share options, the proceeds received net of any directly attributable transactions costs and the amount originally credited to contributed surplus are allocated to share capital. When options expire unexercised the related value remains in additional paid-in capital.

**Business combination** 

A business combination is a transaction or event in which an acquirer obtains control of one or more businesses and is accounted for using the acquisition method. The total consideration paid for the acquisition is the fair value equity instruments issued in exchange for control of the acquiree at the acquisition date. The acquisition date is the date when the Company obtains control of the acquiree. The identifiable assets acquired, and liabilities assumed are recognized at their acquisition date fair values, except for deferred taxes and share-based payment awards where GAAP provides exceptions to recording the amounts at fair value. Goodwill represents the difference between total consideration paid and the fair value of the net-identifiable assets acquired. Acquisition costs incurred are expensed in the consolidated statement of operations and comprehensive income (loss).

Contingent consideration is measured at its acquisition date fair value and is included as part of the consideration transferred in a business combination, subject to the applicable terms and conditions. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with ASC 825, *Financial Instruments,* with the corresponding gain or loss recognized in the consolidated statements of operations and comprehensive income (loss).

Based on the facts and circumstances that existed at the acquisition date, management will perform a valuation analysis to allocate the purchase price based on the fair values of the identifiable assets acquired and liabilities assumed on the acquisition date. Management has one year from the acquisition date to confirm and finalize the facts and circumstances that support the finalized fair value analysis and related purchase price allocation. Until such time, these values are provisionally reported and are subject to change. Changes to fair values and allocations are retrospectively adjusted in subsequent periods.

In determining the fair value of all identifiable assets acquired and liabilities assumed, the most significant estimates generally relate to contingent consideration and intangible assets. Management exercises judgment in estimating the probability and timing of when earn-outs are expected to be achieved, which is used as the basis for estimating fair value. Identified intangible assets are fair valued using appropriate valuation techniques which are generally based on a forecast of the total expected future net cash flows of the acquiree. Valuations are highly dependent on the inputs used and assumptions made by management regarding the future performance of these assets and any changes in the discount rate applied.

Acquisitions that do not meet the definition of a business combination are accounted for as asset acquisitions. Consideration paid for an asset acquisition is allocated to the individual identifiable assets acquired and liabilities assumed based on the fair value of the goods and services received. Asset acquisitions do not give rise to goodwill. Any consideration paid in excess of the identifiable assets and liabilities assumed is expensed to the consolidated statements of operations and comprehensive income (loss).

**Related party transactions**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

**Earnings (loss) per share** 

The Company calculates basic earnings (loss) per share by dividing the loss for the period by the weighted average number of common shares outstanding during the year. It calculates diluted earnings (loss) per share in a similar manner, except that it increases the weighted average number of common shares outstanding, using the treasury stock method, to include common shares potentially issuable from the assumed exercise of stock options and other instruments, if dilutive. For the periods ended June 30, 2025 and June 30, 2024, these potential issuances are "anti-dilutive" as they would decrease the earnings (loss) per share; consequently, the amounts calculated for basic and diluted loss per share are the same.

**Significant accounting judgments and estimates**

The preparation of consolidated financial statements in conformity with US GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported revenues and expenses during the year. Although management uses historical experience and its best knowledge of the amount, events or actions to form the basis for judgments and estimates, actual results may differ from these estimates. Actual future outcomes could differ from present estimates and judgments, potentially having material future effects on the Company's consolidated financial statements. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively.

The following are the critical judgments and estimates that management has made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements:

Business combinations and asset acquisitions

Judgement is required to determine if the Company's acquisition represented a business combination or an asset purchase.

In a business combination, substantially all identifiable assets, liabilities and contingent liabilities acquired are recorded at the date of acquisition at their respective fair values. One of the most significant areas of judgment and estimation relates to the determination of the fair value of these assets and liabilities, including the fair value of contingent consideration, if applicable. If any intangible assets are identified, depending on the type of intangible asset and the complexity of determining its fair value, an independent external valuation expert may develop the fair value, using appropriate valuation techniques, which are generally based on a forecast of the total expected future net cash flows. These valuations are linked closely to the assumptions made by management regarding the future performance of the assets concerned and any changes in the discount rate applied. In certain circumstances where estimates have been made, the Company may obtain third-party valuations of certain assets, which could result in further refinement of the fair-value allocation of certain purchase prices and accounting adjustments.

Functional Currency Translations

The functional currency of the Company and each of the Company's subsidiaries is the currency of the primary economic environment in which the respective entity operates. Such determination involves certain judgements to identify the primary economic environment. The Company reconsiders the functional currency of an entity if there is a significant change in the events and/or conditions which determine the primary economic environment. In the event of a change of functional currency, the Company revaluates the classification of financial instruments. Upon the change in the parent Company's functional currency during the year, the financing warrants, which were initially classified as a derivative liability on the consolidated statements of financial position, were reassessed and reclassified as equity instruments at the fair value on the date of the functional currency change.

Inventory

Inventory is carried at the lower of cost or net realizable value. The determination of net realizable value involves significant management judgement and estimates, including the estimation of future selling prices.

Valuation of share-based payments

The Company uses the Black-Scholes Option Pricing Model for valuation of share-based payments. Option pricing models require the input of subjective assumptions including expected price volatility, and interest rate. The Company determines the term of share-based payments in accordance with ASC 718, *Stock Compensation* (the "plain vanilla" method). Changes in the input assumptions can materially affect the fair value estimate and the Company's earnings and equity reserves.

The valuation of shares and other equity instruments issued in non-cash transactions. Generally, the valuation of non-cash transactions is based on the value of the goods or services received. When non-cash transactions are entered into with employees and those providing similar services, the non-cash transactions are measured at the fair value of the consideration given up using market prices.

Estimated useful life of long-lived assets

Judgment is used to estimate each component of a long-lived asset's useful life and is based on an analysis of all pertinent factors including, but not limited to, the expected use of the asset and in the case of an intangible asset, contractual provisions that enable renewal or extension of the asset's legal or contractual life without substantial cost, and renewal history. If the estimated useful lives were incorrect, it could result in an increase or decrease in the annual amortization expense, and future impairment charges or recoveries.

Impairment of long-lived assets

Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the asset may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). The recoverable amount is the higher of an asset's fair value less costs to sell and value in use (being the present value of the expected future cash flows of the relevant asset or cash-generating unit). An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount.

Contingent liability

Contingent liabilities are accrued for liabilities with uncertain timing or amounts, if, in the opinion of management, it is both probable that a future event will confirm that a liability had been incurred at the date of the consolidated financial statements and the amount can be reasonably estimated. In cases where it is not possible to determine whether such a liability has occurred, or to reasonably estimate the amount of loss until the performance of some future event, no accrual is made until that time. In the ordinary course of business, the Company may be party to legal proceedings which include claims for monetary damages asserted against the Company. The adequacy of provisions is regularly assessed as new information becomes available.

Fair values

The individual fair values attributed to the different components of a financing transaction, notably derivative financial instruments, convertible debentures and loans, are determined using valuation techniques. The Company uses judgment to select the methods used to make certain assumptions and derive estimates. Significant judgment is also used when attributing fair values to each component of a transaction upon initial recognition, measuring fair values for certain instruments on a recurring basis and disclosing the fair values of financial instruments subsequently carried at amortized cost. These valuation estimates could be significantly different because of the use of judgment and the inherent uncertainty in estimating the fair value of instruments that are not quoted or observable in an active market. See "*Note 15 – Financial Instruments and Financial Risk Management*" for summaries of the Company's financial instruments as of June 30, 2025 and December 31, 2024.

Allowance for doubtful accounts

The Company makes estimates for allowances that represent its estimate of potential losses in respect of trade receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that may have been incurred but not yet specifically identified. The Company's allowance is determined by historical experiences, and considers factors including the aging of the balances, the customer's creditworthiness, current economic conditions, expectation of bankruptcies and the economic volatility in the markets/locations of customers.

Segmented Information

The Company currently operates in only one reportable segment: wholesale concentrates. Wholesale concentrates include the propagation, nursery, flowering canopy, drying, processing, manufacturing and distribution of cannabis concentrates. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the Chief Operating Decision Maker ("CODM"), who is the Company's chief executive officer and chief financial officer, in deciding how to allocate resources and assess the Company's financial and operational performance. As of June 30, 2025 and December 31, 2024, all of the Company's operations are in the United States of America in the State of California and New York. Intercompany sales and transactions are eliminated in consolidation.

**4.** **Property and Equipment** 

As of June 30, 2025 and December 31, 2024, the property and equipment consists of the following:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Cost** | **Buildings and land** | **Office equipment and software** | **Machinery and equipment** | **Vehicles** | **Leasehold improvements** | **Total** |
| Balance as of January 1, 2024 | $21928937 | $230323 | $5231077 | $287535 | $692886 | $28370758 |
| &nbsp;&nbsp;&nbsp;Additions | 4042955 |  | 1582988 | 293398 |  | 5919341 |
| &nbsp;&nbsp;&nbsp;Disposals and transfers | 1682826 | (10885) | (1202765) | 16217 | (687886) | (202493) |
| Balance as of December 31, 2024 | $27654718 | $219438 | $5611300 | $597150 | $5000 | $34087606 |
| &nbsp;&nbsp;&nbsp;Additions | 123181 | 10603 | 605096 | 182112 |  | 920992 |
| &nbsp;&nbsp;&nbsp;Disposals and transfers | - | - | - | - | - | - |
| **Balance as of June 30, 2025** | $**27777899** | $**230041** | $**6216396** | $**779262** | $**5000** | $**35008598** |
| &nbsp;&nbsp;&nbsp;**Accumulated Depreciation** |  |  |  |  |  |  |
| Balance as of January 1, 2024 | $(4234199) | $(156130) | $(1958989) | $(133853) | $- | $(6483171) |
| &nbsp;&nbsp;&nbsp;Depreciation | (1504289) | (27854) | 52013 | (77132) | (4557) | (1561819) |
| Balance as of December 31, 2024 | $(5738488) | $(183984) | $(1906976) | $(210985) | $(4557) | $(8044990) |
| &nbsp;&nbsp;&nbsp;Depreciation | (643594) | (6058) | (295040) | (43013) | (443) | (988148) |
| **Balance as of June 30, 2025** | $**(6382082)** | $**(190042)** | $**(2202016)** | $**(253998)** | $**(5000)** | $**(9033138)** |
| **Net Book Value** |  |  |  |  |  |  |
| **June 30, 2025** | $**21395817** | $**39999** | $**4014380** | $**525264** | $**-** | $**25975460** |
| **December 31, 2024** | $**21916230** | $**35454** | $**3704324** | $**386165** | $**443** | $**26042616** |

---

There was depreciation expense and amortization expense for the six months ended June 30, 2025 and 2024 of $988,148 and $743,048, respectively. These amounts were included as operating expenses on the consolidated statements of operations and comprehensive income (loss) for the six months ended June 30, 2025 and 2024.

**5.** **Inventory** 

As of June 30, 2025 and December 31, 2024, inventory consists of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Raw materials | $852052 | $1349923 |
| Work-in-process | 1650019 | 1243542 |
| Finished goods – cannabis related products | 1844404 | 1629452 |
| Total inventory | $4346475 | $4222917 |

---

**6.** **Goodwill** 

As of June 30, 2025 and December 31, 2024, goodwill was $0, respectively. During the year ended December 31, 2023, the Company recorded goodwill of $2,494,485 as a result of a business combination in January 2023. For the year ended December 31, 2024, the Company recorded a $1,567,485 impairment loss on the balance of goodwill. See "*Note 3 – Significant Accounting Policies*" for managements position on impairment of long-lived assets.

**7.** **Intangible Assets** 

As of June 30, 2025 and December 31, 2024, intangible assets were $2,458,151 and $2,232,153, respectively. During the year ended December 31, 2024, the Company acquired Bitcoin cryptocurrency at a cost of $346,777. In accordance with ASC 350-50, Intangible Assets — Digital Assets, the Company accounts for Bitcoin at fair value, recognizing both increases and decreases in value in the statement of operations, and has determined that Bitcoin has an indefinite useful life. As of December 31, 2024, management determined that a $847,000 impairment was deemed necessary for trademark intangible assets.

As of June 30, 2025 and December 31, 2024, intangible assets consisted of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Cost** | **Tradenames** | **Licenses** | **Crypto Currency** | **Total** |
| Balance as of January 1, 2024 | $1540000 | $1850000 | $- | $3390000 |
| &nbsp;&nbsp;&nbsp;Additions |  |  | 346777 | 346777 |
| &nbsp;&nbsp;&nbsp;Change in value |  |  | 20376 | 20376 |
| &nbsp;&nbsp;&nbsp;Impairment | (847000) | - | - | (847000) |
| Balance as of December 31, 2024 | $693000 | $1850000 | $367153 | $2910153 |
| &nbsp;&nbsp;&nbsp;Additions |  | 300000 | 405650 | 705650 |
| &nbsp;&nbsp;&nbsp;Change in value |  |  | 40337 | 40337 |
| &nbsp;&nbsp;&nbsp;Disposal | - | - | (403622) | (403622) |
| **Balance as of June 30, 2025** | $**653000** | $**2150000** | $**409518** | $**3252518** |
| **Accumulated Depreciation** |  |  |  |  |
| Balance as of January 1, 2024 | $(154000) | $(185000) | $- | $(339000) |
| &nbsp;&nbsp;&nbsp;Amortization | (154000) | (185000) | - | (339000) |
| &nbsp;&nbsp;&nbsp;Balance as of December 31, 2024 | $(308000) | $(370000) | $- | $(678000) |
| &nbsp;&nbsp;&nbsp;Amortization | (23865) | (92502) | - | (169502) |
| **Balance as of June 30, 2025** | $**(331865)** | $**(462502)** | $**-** | $**(794367)** |
| **Net Book Value** |  |  |  |  |
| **June 30, 2025** | $**361135** | **$1687498** | $**409518** | $**2458151** |
| **December 31, 2024** | $**385000** | $**1480000** | $**367153** | $**2232153** |

---

Future amortization of intangible assets are as follows:

---

| | |
|:---|:---|
| Year Ending December 31, |  |
| 2025 | $134102 |
| 2026 | 263125 |
| 2027 | 263125 |
| 2028 | 263125 |
| 2029 | 263125 |
| Thereafter | 862033 |
| Total Future Amortization | $2048635 |

---

**8.** **Assets Held for Sale** 

As of June 30, 2025 and December 31, 2024, the Company has classified certain long-lived assets as held for sale in accordance with ASC 360-10-45-9. These assets met the criteria for classification as held for sale, including management's commitment to a plan to sell, active marketing at a price reasonable in relation to fair value, and the expectation that the sale will be completed within one year. The asset held for sale consists of a cultivation and processing cannabis license located in Clark County, Nevada, with a carrying value of $1,445,483. These licenses are not currently being utilized in the Company's operations, and management is actively pursuing a sale to a third party. In the previous years, the licenses were included in the acquisition deposit line item on the balance sheet, as the transfer of the licenses had not yet been completed. Following the successful transfer in 2024, the assets were reclassified to assets held for sale.

No impairment loss was recognized upon reclassification, as the estimated fair value less costs to sell exceeds the carrying amount.

**9.** **Accounts Payable and Other Accrued Liabilities** 

As of June 30, 2025 and 2024, accounts payable and other accrued liabilities consists of the following:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Accounts payable | $4379420 | $3511303 |
| Accrued liabilities | 2558467 | 3102490 |
| Total accounts payable and other accrued liabilities | $6937887 | $6613793 |

---

**10.** **Derivative liabilities** 

During June 2019, the Company entered into a private placement financing by issuing approximately $14,671,000 senior secured convertible debentures (see *"Note 11 - Convertible Debentures"*) and 14,671 share purchase warrants that contain a non-fixed conversion ratio into the Company's shares and exercise price, respectively. During September 2022, 75% of the senior secured convertible debentures balance was modified such that that the conversion price into the Company's common stock was denominated in a currency other than the Company's functional currency. As a result, the conversion options did not have a fixed conversion rate.

In accordance with ASC 825, *Financial Instruments,* a contract to issue a variable number of equity shares fails to meet the definition of equity. Accordingly, such a contract or instrument would be accounted for as a derivative liability and measured at fair value with changes in fair value recognized in the Condensed Consolidated Statements of Operations and Comprehensive Loss at each period-end.

During the year ended December 31, 2024, the Company has issued additional warrants that contain a non-fixed conversion ratio in that the conversion price into the Company's stock was denominated in a currency other than the Company's functional currency.

The Company used Monte Carlo to estimate the fair value of the derivative liabilities for the senior secured convertible debentures. The Company used the Black-Scholes model to estimate the fair value of the derivative liabilities for the warrants. The Monte Carlo and Black-Scholes pricing models use Level 3 inputs in their valuation models.

The following assumptions were used by management to determine the fair value of the derivative liabilities as of June 30, 2025 and December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Expected stock price volatility | 72.62% - 181.30% | 104.62% - 186.74% |
| Risk-free annual interest rate | 3.68% - 4.41% | 3.99% - 5.42% |
| Expected life (years) | 0.36 – 2.90 | 0.28 – 3.39 |
| Share price | $0.15 | $0.07 - $0.21 |

---

A reconciliation of the beginning and ending balance of derivative liabilities and change in fair value of the derivative liabilities is as follows for the six months ended June 30, 2025 and the year ended December 31, 2024:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Balance as of beginning of period | $9007907 | $1094316 |
| Change in fair value | (4105121) | 6113485 |
| Loss from extinguished liability |  | 2895140 |
| Conversion to common stock and warrants |  | (3149687) |
| Initial recognition of debenture warrants |  | 824427 |
| Initial recognition of new warrants | - | 1230226 |
| Balance as of end of the period | 4902786 | 9007907 |
| Less: Derivative liabilities, short term | - | - |
| Derivative liabilities, long term | $4902786 | $9007907 |

---

**11.** **Notes Payable** 

As of June 30, 2025 and December 31, 2024 notes payable consisted of the following:

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Secured promissory notes dated November 2018 through September 2024 issued to finance equipment acquisitions which mature from December 2023 through October 2030, and bear interest of 3.12% to 10.99% with principal and interest payments due monthly. | $310014 | $225140 |
| Small Business Administration loan which bears interest at 1% with interest payments due monthly. | 11000 | 11000 |
| Secured promissory note dated May 25, 2023, which matures in May 2028 | 5343627 | 4846714 |
| Secured promissory note dated September 19, 2023, which matures in September 2028 and bears interest of 4% | 4199000 | 4199000 |
| Secured promissory note dated July 8, 2024, which matures in June 2025 and bears interest of 15% |  | 249900 |
| Secured promissory note dated July 3, 2024, which matures in July 2026 and bears interest of 10% | 1000000 | 1000000 |
| Secured promissory note dated September 20, 2024, which matures on September 19, 2025 and bears interest of 19% | 52284 | 52283 |
| Secured promissory note dated April 2025, which matures in March 2026 and bears interest of 12% | 199577 |  |
| Secured promissory note dated April 2025, which matures in August 2025 and bears interest of 15% | 287400 |  |
| Secured promissory note dated April 2025, which matures in March 2026 and bears interest of 15% | 148230 |  |
| Secured promissory note dated May 2025, which matures in April 2027 and bears interest of 16% | 61327 | - |
| Total Notes payable | $11612459 | $10584037 |
| Less current portion | (1798783) | (1337490) |
| **Total notes payable, net of current** | $**9813676** | $**9246547** |

---

A reconciliation of the beginning and ending balances of notes payable for six months ended June 30, 2025 and the year ended December 31, 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Balance as of beginning of period | $10584037 | $8884513 |
| Proceeds from notes payable |  | 1325574 |
| Non-cash note additions | 245050 |  |
| Financed equipment | 433112 |  |
| Financing arrangements |  | 241898 |
| Amortization of debt discount | 498912 | 993823 |
| Resale of note payable to related party |  | (472000) |
| Interest classified to debt | 67500 | 80058 |
| Non-cash note repayment | (50423) |  |
| Cash repayments | (165729) | (469829) |
| **Balance as of end of period** | $**11612459** | $**10584037** |

---

On May 25, 2023, the Company entered into a Loan Agreement with ADSB for a total of $7,000,000 which is zero-interest bearing. The loan was issued in connection with 5,687,500 detached warrants which are immediately exercisable at a price of CAD$0.08 per share (USD $0.06) for a period of 60 months from the date of issuance. Upon full repayment of the loan, which is expected in February 2027 the Company will transfer 720,000 Class A Units of ADSB to the lender. Both the warrants and the ADSB transfer were determined to create a debt discount totaling $3,809,659 that is amortized over the term of the loan. During the six months ended June 30, 2025 and the year ended December 31, 2024, amortization of the debt discount of $498,912 and $993,824, respectively, were recorded.

On September 30, 2023, the Company entered into a Loan Agreement with the Salisbury Canyon Ranch, LLC for a total of $4,199,000 which bears interest at 4% per annum. The Company will make interest-only payments for a period of three years at which point blended interest and principal payments will be made for an additional two years, with a balloon payment due at that time.

**12.** **Convertible Debentures** 

A reconciliation of the beginning and ending balances of convertible debentures for the six months ended June 30, 2025 and the year ended December 31, 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  | **June 30, 2025** | **December 31, 2024** |
| Balance as of beginning of period | $9976000 | $8937666 |
| Conversions of debt and accrued interest (1) |  | (4718705) |
| Accrual of interest | 393541 |  |
| Extinguishment of debt discount |  | 1322533 |
| Amortization of debt discount | - | 4434506 |
| **Balance as of end of period** | $**10369541** | $**9976000** |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Upon conversion, both common stock and warrants were issued. The value of the conversion feature and warrants recorded to equity was $3,189,575 , with $824,427 recorded as a derivative liability for warrants issued and netted against the transaction recorded to equity.* 

**Senior Debentures**

On June 6, 2019, the Company entered into a convertible senior secured debenture (the "Senior Debentures") in an aggregate principal amount not to exceed $35,000,000 with accredited investors and qualified institutional buyers wherein the Senior Debentures shall mature on June 6, 2022 and bear interest at a rate of 9.0%. The Senior Debentures are to be issued from time to time at the election of the Company pursuant to one or more subscription agreements.

The Senior Debentures contain two conversion features wherein the conversion rate is equal to $1,000 principal amount of debentures divided by the conversion price, which is the lesser of (i) the price that is a 25% discount to the liquidity event price and (ii) the price determined based on a pre-money enterprise value of the Company of $150,000,000. The initial conversion rate shall be determined immediately upon the consummation of a liquidity event and shall be subject to adjustment.

In the event that a liquidity event, as defined in the Senior Debentures agreement, is consummated, holders have the right, at the holder's option, to convert all or any portion of their Senior Debentures into the Company's common shares (the "Optional Conversion"). Additionally, at the Company's election, the Company has the right to convert all outstanding debentures into common shares if all of the following conditions are satisfied, with no further action by the holders (the "Mandatory Conversion"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A
 liquidity event has been consummated;

(ii) The
 liquidity event price is at least 100% greater than the conversion price;

(iii) The
 common shares are listed on a recognized Canadian stock exchange or a national U.S. stock exchange; and

(iv) The
 daily VWAP of the common share is 20% greater than the liquidity event price for at least 10 consecutive trading days immediately
 prior to the date of the Company's conversion notice.

The Company may issue up to $3,500,000 aggregate principal amount of debentures without the consent of or notice to the holders in the event a Liquidity Event is not consummated on or prior to June 6, 2020. Pursuant to the Agency Agreement, in the event a liquidity event has not occurred by June 6, 2020, the Company will issue additional Debenture Units in an aggregate principal amount equal to 10% of the aggregate number of Debenture Units initially issued to the purchaser as a penalty. In June 2020, the Company issued additional Senior Debentures totaling $1,467,000 as a result of this provision. In connection with the additional debentures issued, the Company recognized a derivative liability of $427,246 and also recorded an offsetting debt discount.

Effective September 9, 2022, the Company amended its Senior Debentures as part of a restructuring support agreement with Icanic Brands (the "Modification"). The Modification provides for 25% of the outstanding principal and accrued unpaid interest to be settled in cash with the remaining 75% settled in new convertible debentures which bear interest at 11% and convert into units at Canadian dollars ("C$") $0.10 with each unit comprised of an Icanic Brands common share and share purchase warrant exercisable into Icanic Brands common share at a price of C$0.15 per share for a period of 24 months from the date of conversion ("Conversion Option"). The Conversion Option was determined to be a derivative under ASC 825*, Financial Instruments*, as the Conversion Option is denominated in a currency other than the Company's functional currency. See "*Note 10 – Derivative Liabilities*" for further details.

On September 8, 2022, the Company closed a non-brokered private placement of new secured debentures in the aggregate principal amount of C$1,300,000 (the "Additional Secured Debentures"). The Additional Secured Debentures have been issued pursuant to a debenture indenture entered into as of September 8, 2022 (the "Indenture"). Pursuant to the Indenture, the Company can issue up to an aggregate of CAD$4,000,000 in connection with the offering. The Additional Secured Debentures bear interest at a rate of 11.0% per annum and mature 24-months from the date of issue (September 8, 2024). The interest accrued under the Additional Secured Debentures is payable in cash upon maturity. Additional Secured Debentures have the same conversion option as Senior Debentures after the Modification. The conversion option is denominated in a functional currency (CAD) that is different as the issuer (USD) and as such needs to be assessed for derivative treatment. Upon further analysis, it was deemed the instrument had an embedded derivative and as such has been recorded as a component of debt.

In connection with the initial issuance of the Senior Debentures, share purchase warrants ("Senior Warrants") exercisable into common shares based on its issue price divided by its conversion price were also issued. The conversion price is equal to the lesser of: (A) the price that is a 25% discount to the liquidity event price and (B) the price determined based on a certain value. The exercise price is a price per common share which is 50% greater than the conversion price. The exercise price is subject to adjustment in the event of a common share reorganization, rights offering, special distribution, or capital reorganization. The warrants are exercisable upon the occurrence of a liquidity event, as defined in the Senior Warrant agreement, and the exercise period is the 24 months following the liquidity event date, provided that if a liquidity event has not occurred within five (5) years from the initial closing date of this offering, the warrants shall expire. Initially the aggregate value of these warrants included a potentially embedded feature to be treated as a derivative but was determined to be de minimis. The embedded conversion feature of the Senior Debentures has been deemed to be a derivative. See "*Note 10 – Derivative Liabilities*" for further details. Subsequent to the merger with LEEF, the Senior Warrants were effectively issued as part of the share exchange terms noted in the Merger Agreement between LEEF and Icanic. As such, there were 6,616,800 warrants issued from the original 527,338 warrants of LEEF due to the agreed upon 12.55 conversion ratio. See "*Note 17 – Share Capital*" for further details on warrant activity for the year ended December 31, 2024. As a result of the non-fixed number of shares the Additional Senior Debentures can be converted or exercised into, these features were recognized as a derivative liability (see "*Note 10 – Derivative Liabilities*").

On April 19, 2024, the Company amended its Indenture Agreement by restructuring its debentures through a conversion of the balance due to certain debenture holders and extinguishment debt. Per the amendments, the remaining balance due under the updated agreement is due September 9, 2027. The Company converted debenture balances totaling approximately $4.9 million into 22,395,948 common shares at a conversion price of approximately $0.02 per share, which also triggered the issuance of 22,395,950 warrants to purchase the Company's common stock, together valued at $7.9 million. The Company has recorded a loss on extinguishment of debt as part of this transaction.

**13.** **Lease Liabilities** 

The Company's facilities are leased under a number of leases, all of which have been classified as operating leases in accordance with ASC 842, *Leases*. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date.

The Company used an incremental borrowing rate between 12% to 15%. Total future payments under lease agreements are further disclosed in Note 14 – Financial Instruments and Financial Risk Management.

The undiscounted lease liabilities are as follows:

---

| | |
|:---|:---|
| Year Ending December 31, |  |
| 2025 | $312365 |
| 2026 | 625828 |
| 2027 | 437483 |
| 2028 | 374218 |
| 2029 | 236577 |
| Thereafter | 2118968 |
| Total Future Minimum Lease Payments | $4105439 |
| Less: Interest | (1943642) |
| Present Value of Lease Liabilities | 2161797 |
| Less: Current Portion of Lease Liabilities | (309608) |
| **Lease Liabilities, Net of Current Portion** | $**1852189** |

---

&nbsp;&nbsp;&nbsp;&nbsp;**14.** **Contingent Consideration and Consideration Payable** 

In October 2021, the Company entered into a Membership Interest Unit Purchase Agreement with Anderson Development SB, LLC ("ADSB") to acquire 100% of the outstanding membership interest units. As consideration for the interest units, the Company agreed to an Earnout Consideration ("Earnout") in the amount equal to 200% of the investment amount in ADSB. The Earnout shall be contingent upon ADSB successfully obtaining a land use permit and a business license to conduct cannabis cultivation by February 28, 2025. As of December 31, 2021 there was a remote probability of this occurring before the Earnout Deadline. During the year ended December 31, 2022, Management determined it became highly probably ADSB would acquire the permit and license within the allotted time. This was based on a large change and turnaround in the cultivation market during the year ended December 31, 2022. As such, the Company recorded an additional contingent consideration for the Earnout that will be paid out totaling $2,400,000.

Pursuant to the terms of the merger agreement, former LEEF shareholders will also be entitled to receive the following contingent Earn-out Payments, On July 20, 2023, an amount equal to 10% of (A) the product equal to two times the TTM revenue calculated for the 12-month period immediately following closing minus (B) US$120 million; on July 20, 2024, an amount equal to 10% of (A) the product equal to two times the TTM revenue calculated for the 12-month period immediately following the date that is one year from the closing date minus (B) the US$120 million and minus (C) any amounts paid pursuant to the First Earn-Out Payment; and on July 20, 2025, an amount equal to 10% of (A) the product equal to two times the TTM revenue calculated for the 12-month period immediately following the date that is two years from the closing date minus (B) US$120 million, minus (C) any amounts paid pursuant to the First Earn-Out Payment, minus (D) any amounts paid pursuant to the Second Earn-Out Payment. The original value of the total earnout as of April 20, 2022 was $3,972,000. Each of the Earn-Out Payments will be satisfied in full through the issuance of common shares of the Company based on the 30-day volume weighted average trading price of the shares on the Canadian Securities Exchange for the period ending on the business day prior to the issuance.

By the beginning of 2024, the contingent consideration was $1,355,000, which includes $855,000 related to the Earn Out Payments and classified as a long term liability and $500,000 related to ADSB, which is classified as a current liability. As of December 31, 2024, the $855,000 in contingent consideration related to the Earn Out Payments was released, leaving a balance of $500,000 outstanding.

**15.** **Financial Instruments and Financial Risk Management** 

**Financial Instruments**

Financial instruments recorded at fair value are classified using a fair value hierarchy that reflects the significance of the inputs to fair value measurements. The three levels of hierarchy are:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and

Level 3 – Inputs for the asset or liability that are not based on observable market data.

Financial instruments are measured at amortized cost or at fair value. Financial instruments measured at amortized cost consist of accounts receivable, and accounts payable and accrued liabilities wherein the carrying value approximates fair value due to its short-term nature. Other financial instruments measured at amortized cost include notes payable, lease liabilities, and convertible debentures wherein the carrying value at the effective interest rate approximates fair value as the interest rate for notes payable and the interest rate used to discount the host debt contract for convertible debentures approximate a market rate for similar instruments offered to the Company.

Cash are measured at Level 1 inputs. Derivative assets and derivative liabilities are measured at fair value based on the Monte Carlo or Black-Scholes option-pricing model, which uses Level 3 inputs. Convertible debentures are measured at fair value based on the Monte Carlo and Black-Sholes simulation model, which uses Level 3 inputs.

**15.** **Financial Instruments and Financial Risk Management (continued)** 

The following table summarizes the Company's financial instruments as of June 30, 2025:

---

| | | | |
|:---|:---|:---|:---|
| **Financial assets:** | **Amortized Cost** | **Fair Value** | **Total** |
| Cash | $- | $887891 | $887891 |
| Accounts receivable | $2217770 | $- | $2217770 |
| **Financial liabilities:** |  |  |  |
| Accounts payable and other accrued liabilities | $6937887 | $- | $6937887 |
| Notes payable | $11612459 | $- | $11612459 |
| Derivative liabilities | $- | $4902786 | $4902786 |
| Lease liabilities | $2161797 | $- | $2161797 |

---

The following table summarizes the Company's financial instruments as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Financial assets:** | **Amortized Cost** | **Fair Value** | **Total** |
| Cash | $- | $2731979 | $2731979 |
| Accounts receivable | $2394542 | $- | $2394542 |
| **Financial liabilities:** |  |  |  |
| Accounts payable and other accrued liabilities | $6613793 | $- | $6613793 |
| Convertible debentures | $- | $9976000 | $9976000 |
| Notes payable | $10584037 | $- | $10584037 |
| Derivative liabilities | $- | $9007907 | $9007907 |
| Lease liabilities | $2585479 | $- | $2585479 |

---

The carrying values of the Company's financial instruments carried at amortized cost approximate fair values due to their short duration.

**Financial Risk Management Objectives and Policies**

The Company is exposed to various financial risks resulting from both its operations and its investments activities. The Company's management, with the Board of Directors oversight, manages financial risks. Where material, these risks will be reviewed and monitored by the Board of Directors. The type of risk exposure and the way in which such exposure is managed is provided as follows:

**Credit risk**

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, and receivables. The Company's cash is held through United States financial institutions and no losses have been incurred in relation to these items.

The Company's receivables are comprised of trade accounts receivable, unbilled revenues, and term note receivables. As of June 30, 2025, the Company has $1,904,813, $5,223, $227,030, respectively, in trade accounts receivable outstanding 0-60 days, 61-90 days and over 90 days, respectively. The expected credit loss for overdue balances as of June 30, 2025 is estimated to be approximately $1.2 million based on subsequent collections, discussions with associated customers and analysis of the credit worthiness of the customer.

The carrying amount of cash, promissory note receivable, and trade and other receivables represent the maximum exposure to credit risk. As of June 30, 2025 and December 31, 2024, the net amount of maximum exposure risk was $3,105,660 and $5,126,521, respectively.

**15.** **Financial Instruments and Financial Risk Management (continued)** 

**Market and Other Risks**

Market risk is the risk of uncertainty arising primarily from possible commodity market price movements and their impact on the future economic viability of the Company's projects and ability of the Company to raise capital. These market risks are evaluated by monitoring changes in key economic indicators and market information on an on-going basis and adjusting operating and exploration budgets accordingly. As of June 30, 2025, the market and other risks are low.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations associated with financial liabilities. The Company manages liquidity risk through the management of its capital structure. The Company's approach to managing liquidity is to ensure that it will have sufficient liquidity to settle obligations and liabilities when due.

The Company has the following contractual obligations as of June 30, 2025:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **<1 Year** | **1 to 3 Years** | **3 to 5 Years** | **> 5 Years** | **Total** |
| Accounts payable and other accrued liabilities | $6937887 | $- | $- | $- | $6937887 |
| Related party payables | $2981619 | $- | $- | $- | $2981619 |
| Tax payable | $14004665 | $- | $- | $- | $14004665 |
| Convertible debentures | $- | $10369541 | $- | $- | $10369541 |
| Notes Payable | $1798783 | $9813676 | $- | $- | $11612459 |
| Derivative liabilities | $- | $4902786 | $- | $- | $4902786 |
| Lease liabilities | $309608 | $609248 | $212291 | $1035650 | $2161797 |

---

The Company has the following contractual obligations as of December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **<1 Year** | **1 to 3 Years** | **3 to 5 Years** | **> 5 Years** | **Total** |
| Accounts payable and other accrued liabilities | $6613793 | $- | $- | $- | $6613793 |
| Related party payables | $1488866 | $- | $- | $- | $1488866 |
| Tax payable | $12836039 | $- | $- | $- | $12836039 |
| Convertible debentures | $- | $9976000 | $- | $- | $9976000 |
| Notes Payable | $1337490 | $9246547 | $- | $- | $10584037 |
| Derivative liabilities | $- | $9007907 | $- | $- | $9007907 |
| Lease liabilities | $302736 | $819457 | $405096 | $1058190 | $2585479 |

---

**Currency risk**

The Company is exposed to currency risk related to the fluctuation of foreign exchange rates and the degree of volatility of those rates. Currency risk is limited to the portion of the Company's business transactions and balances denominated in currencies other than the United States dollar.

Assuming all other variables remain constant, a fluctuation of +/- 5.0 percent in the exchange rate between the United States dollar and the Canadian dollar would impact the carrying value of the net monetary assets by approximately +/- $390,000. To date, the Company has not entered into financial derivative contracts to manage exposure to fluctuations in foreign exchange rates.

**Interest rate risk**

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Cash bear interest at market rates. The Company's financial liabilities have fixed rates of interest and therefore expose the Company to a limited interest rate fair value risk.

**15.** **Financial Instruments and Financial Risk Management (continued)** 

**Crypto Currency Risk**

We hold Bitcoin as part of our treasury assets. The value of Bitcoin is highly volatile and can be influenced by various factors, including market demand, regulatory developments, technological changes, and broader economic conditions. A significant decline in Bitcoin's market price could adversely affect our financial condition and results of operations. Additionally, the evolving regulatory landscape for digital assets may impose new compliance requirements or restrictions, potentially impacting our ability to hold or transact in Bitcoin. Security risks, such as cyberattacks or loss of private keys, could also result in the loss of our Bitcoin holdings. These factors collectively pose risks to our business and financial performance.

**Key Management Compensation**

Key management personnel are persons responsible for planning, directing and controlling activities of an entity, and include executive and non-executive persons. During the six months ended June 30, 2025 and the year ended December 31, 2024, the Company recognized approximately $1,083,885 and $1,301,213, respectively, in compensation and stock-based compensation, respectively, provided to key management.

**Related Party Balances**

As of June 30, 2025, the Company had accrued approximately $313,000 of expenses to a farming company that is owned by a member of management and shareholder with approximately $481,000, unpaid as of period end.

On November 2, 2021, the Company acquired 100% of the outstanding membership interests of Anderson Development SB, LLC ("ADSB") from third parties and a controlling interest holding related party in exchange for approximately $1,440,000 plus up to an additional $2,400,000 of consideration (the "Contingent Consideration") (collectively, the "Consideration"). The Consideration is payable in Common Stock. The Contingent Consideration is subject to ADSB obtaining a land use permit and a business license by February 28, 2025 that permits ADSB to conduct cannabis cultivation operations. ADSB primarily holds an option to acquire certain real property in Santa Barbara County, California. The Company determined that the acquisition of ADSB membership interest was a common control transaction and have elected to record the assets acquired and liabilities assumed at the historical book value rather than fair value with no recognition of goodwill or gain or loss.

Additionally, the Company has elected to record the equity consideration at par value and will recognize the Contingent Consideration in the consolidated financial statements only when met. During the year ended December 31, 2022, Management determined it became highly probably ADSB would acquire the permit and license within the allotted time. This was based on a large change and turnaround in the cultivation market during the year ended December 31, 2022. As such, the Company has recorded an additional contingent consideration for the Earnout that will be paid out in the form of equity and totaled $2,400,000 and was reduced to $500,000 as of December 31, 2024. See Note 13 – Contingent Consideration and Consideration Payable for further information.

During the year ended December 31, 2024, a note payable with a principal balance of $400,000 and accrued interest of $72,000 were resold to a related party. The Company also borrowed $200,000 and $39,000 from two additional related parties during the year ended December 31, 2024. During the six months ended June 30, 2024, the Company also entered into a note payable with a principal balance of $445,000 with annual interest of 10% that matures on April 6, 2026. The note is collateralized by the Company's crypto currency. In the event the crypto currency is sold prior to the maturing of the note, the collateral will shift to the SCRSB, LLC cultivation licenses and inventory to a value of 2.5 times the principal amount of the note.

**16.** **Share Capital** 

**Authorized capital**

The Company's authorized share capital consists of:

● an unlimited number of common shares without par value; and

● an unlimited number of preferred shares issuable in series. No preferred shares are issued as of June 30, 2025.

**Common shares**

**For the six months ended June 30, 2025:**

On January 13, 2025, the Company issued 1,858,031 common shares at an average price of $0.6660 CAD per share totaling $935,618 to the former shareholders of The Leaf at 73740 LLC. per the Membership Interest Purchase Agreement dated January 11, 2023.

On March 12, 2025, the Company issued 600,000 common shares for services, with a grant date fair value of $100,000.

**For the six months ended June 30, 2024:**

On February 26, 2024, the Company issued 1,500,000 common shares for services, with a grant date fair value of $333,333.

During the six months ended June 30, 2024, there were 2,161,558 common shares issued for cash of $429,133.

In June 2024, in connection with the conversion of convertible debentures, the Company issued 22,395,948 common shares and warrants valued at $7,083,853.

**Warrants**

In April 2024, in connection with the settlement of certain convertible debentures, a total of 22,395,948 warrants to purchase the Company's stock were issued. The warrants are exercisable at a price of CAD$1.50 per share (USD $1.00) for a period of 24 months from the date of issuance. The Company recorded a derivative liability of $824,427 related to the issuance of these warrants during the year ended December 31, 2024.

In August 2024, in connection with the equity issuance in 2024, a total of 2,742,521 warrants to purchase the Company's stock were issued. The warrants are exercisable at a price of CAD$0.60 per share (USD $0.42) for a period of 24 months from the date of issuance. The Company recorded a derivative liability of $70,824 related to the issuance of these warrants during the year ended December 31, 2024.

In December 2024, in connection with the equity issuance in Q4 2024, a total of 10,815,100 warrants to purchase the Company's stock were issued. The warrants are exercisable at a price of CAD$0.40 per share (USD $0.29) for a period of 24 months from the date of issuance. The Company recorded a derivative liability of $1,159,402 related to the issuance of these warrants during the year ended December 31, 2024.

The following table summarizes the warrants outstanding that remain outstanding as June 30, 2025:

---

| | | |
|:---|:---|:---|
| **Expiration Date** | **Outstanding** | **Exercise Price** |
| November 9, 2025 | 94834 | $0.37 |
| April 19, 2026 | 22395950 | $1.10 |
| August 19, 2026 | 2742519 | $0.44 |
| December 9, 2026 | 8473500 | $0.29 |
| December 15, 2026 | 2341600 | $0.29 |
| May 24, 2028 | 5687500 | $0.59 |
| **Total warrants outstanding** | **41735903** |  |

---

**2019 Stock incentive plan**

The omnibus 2019 stock incentive plan permits the Board of Directors of the Company to grant options to employees and non-employees to acquire common shares of the Company at fair market value on the date of approval by the Board of Directors. Vesting is determined on an award-by-award basis.

**16. Share Capital (continued)**

There were a total of 503,077 and 6,180,833 options granted during the six months ended June 30, 2025 and the year ended December 31, 2024, respectively. As of June 30, 2025 and December 31, 2024, there were 14,318,125 and 13,815,048, respectively, options outstanding. For the six months ended June 30, 2025 and the year ended December 31, 2024, there was $493,337 and $428,108, respectively, of share-based compensation expense related to the 2019 stock incentive plan.

Stock option activity is summarized as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of Stock Options** | **Weighted-<br> Average Exercise Price** | **Weighted-<br> Average Remaining Contractual Life** | **Aggregate Intrinsic<br> Value** |
| **Balance as of December 31, 2023** | **13479874** | $**0.72** | $**4.46** | $**-** |
| Granted | 6180833 | $0.16 | $3.86 | $- |
| Forfeited | (5845659) | $0.96 | $4.68 | $- |
| **Balance as of December 31, 2024** | **13815048** | $**0.39** | $**4.21** | $**-** |
| Granted | 503077 | $0.19 | $9.06 | $- |
| Forfeited | - | $- | $- | $- |
| **Balance as of June 30, 2025** | **14318125** | $**0.38** | $**3.90** | $**-** |

---

The Company used the Black-Scholes Option Pricing model to estimate the fair value of the options granted during the six months ended June 30, 2025 and the year ended December 31, 2024, using the following range of assumptions:

---

| | | |
|:---|:---|:---|
|  | June 30, 2025 | December 31, 2024 |
| Expected stock price volatility | 156.11% - 239.57% | 156.11% - 239.57% |
| Risk-free annual interest rate | 4.11% - 5.23% | 4.11% - 5.23% |
| Expected life (years) | 1.5 – 9.8 | 1.5 – 6.5 |
| Expected annual dividend yield | 0.00% | 0.00% |

---

The following table summarizes the stock options that remain outstanding as of June 30, 2025:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Exercise Price** | **Date** | **Outstanding** | **Exercisable** | **Vesting Condition** |
| $0.65 | February 2029 | 12548 | 12548 | One year vesting |
| $0.65 | February 2029 | 76009 | 76009 | Immediate vesting |
| $0.65 | February 2029 | 3531148 | 3531148 | Three year vesting |
| $0.65 | February 2029 | 6274 | 6274 | Immediate vesting |
| $0.65 | July 2029 | 2824918 | 2824918 | Immediate vesting |
| $0.65 | February 2029 | 264836 | 264836 | Immediate vesting |
| $0.01 | October 2030 | 887112 | 887112 | One year vesting |
| $1.05 | October 2031 | 31369 | 31369 | Immediate vesting |
| $0.15 | July 2034 | 66667 | 66667 | Immediate vesting |
| $0.15 | July 2034 | 66667 | 55556 | One year vesting |
| $0.15 | July 2034 | 200000 | 55556 | Three year vesting |
| $0.25 | October 2026 | 300000 | 33333 | One year vesting |
| $0.15 | November 2029 | 3290000 | 1919167 | One year vesting |
| $0.15 | October 2029 | 60000 | 15000 | One year vesting |
| $0.20 | January 2035 | 443077 | 221539 | Immediate vesting |
| $0.15 | November 2029 | 1957500 | 1141875 | One year vesting |
| $0.25 | November 2029 | 300000 | 175000 | One year vesting |
|  |  | 14318125 | 11317907 |  |

---

**16.** **Share Capital (continued)** 

**Restricted Share Unit Plan**

In December 2022, the Company formally adopted the Restricted Share Unit Plan ("RSU Plan"). The RSU Plan permits the Board of Directors of the Company to grant Restricted Share Units ("RSU's") to employees and non-employees to acquire common shares of the Company at fair market value on the date of approval by the Board of Directors. Vesting is determined on an award-by-award basis. During the six months ended June 30, 2025 and the year ended December 31, 2024, 0 and 6,939,253 units were granted, 3,065,844 and 1,330,852 units were vested, 0 and 0 were forfeited, and 0 and 0 were exercised, respectively. For the six months ended June 30, 2025 and the year ended December 31, 2024, the Company recognized share-based compensation expense of $465,588 and $539,772, respectively, for units that were vested. The average grant-date fair value of the RSU's during the year ended December 31, 2024 was $0.14.

Restricted share unit activity is summarized as follows:

Schedule of Restricted Share Unit Activity

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of**<br> **Restricted**<br> **Share Units** | **Weighted-<br> Average Exercise Price** | **Weighted-<br> Average Remaining Contractual Life** | **Aggregate**<br> **Intrinsic**<br> **Value** |
| **Balance as of December 31, 2023** | **253333** | $**0.71** | $**4.46** | $**-** |
| Granted | 6939253 | $0.15 | $4.79 | $- |
| Forfeited | - | $- | $- | $- |
| **Balance as of December 31, 2024** | **7192586** | $**0.17** | $**4.73** | $**-** |
| Granted |  | $- | $- | $- |
| Forfeited | - | $- | $- | $- |
| **Balance as of June 30, 2025** | **7192586** | $**0.17** | $**4.23** | $**-** |

---

The Company used the Black-Scholes Option Pricing model to estimate the fair value of the restricted share units granted during the years ended December 31, 2024, using the following range of assumptions:

---

| | |
|:---|:---|
|  | December 31, 2024 |
| Expected stock price volatility | 175.40% - 190.53% |
| Risk-free annual interest rate | 4.10% - 4.20% |
| Expected life (years) | 2.5 – 3.0 |
| Expected annual dividend yield | 0.00% |

---

**Reserves**

Reserves includes accumulated foreign currency translation adjustments and the accumulated fair value of share-based compensation and warrants transferred from share-based payment reserve and warrant reserve upon cancellation or expiry of the share options and warrants.

**17.** **Income tax expense** 

The following table summarizes the Company's income tax expense and effective tax rates for the six months ended June 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Loss before income taxes | $(1338419) | $(6487993) |
| Income tax expense | 1329004 | 1761309 |
| Effective tax rate | (99.3%) | (27.1%) |

---

The effective tax rates for the six months ended June 30, 2025 and 2024 were based on the Company's forecasted annualized effective tax rates and were adjusted for discrete items that occurred within the periods presented.

Due to its cannabis operations, the Company is subject to the limitations of the U.S. Internal Revenue Code of 1986, as amended ("IRC") Section 280E under which the Company is only allowed to deduct expenses directly related to sales of product. This results in permanent differences between ordinary and necessary business expenses deemed non-allowable under IRC Section 280E. Therefore, the effective tax rate can be highly variable and may not necessarily correlate with pre-tax income and provides for effective tax rates that are well in excess of statutory tax rates.

**18.** **Non-controlling interest** 

Non-controlling interest represents the net assets of the subsidiaries the Company does not directly own. The net assets of the non-controlling interest are represented by equity holders outside of the Company. As of June 30, 2025 and December 31, 2024 the Company held a 100.00% interest, respectively, in an investment subsidiary Aya Biosciences, Inc. During the year ended December 31, 2024, the Company acquired the remaining interest. This entity is included in the financial statements with a resulting non-controlling interest reflected therein. Non-controlling interests are included as a component of shareholders' equity.

A reconciliation of the beginning and ending balances for non-controlling interests for the year ended December 31, 2024 is as follows:

---

| | |
|:---|:---|
|  | 2024 |
| Balance as of beginning of period | $3649489 |
| Acquisition of remaining interest in Aya Biosciences | (3649489) |
| Share of loss | - |
| Balance as of end of period | $- |

---

As of June 30, 2025 and December 31, 2024, there were no remaining non-controlling interests outstanding.

**19.** **Commitments and contingencies** 

**Contingencies**

The Company's operations are subject to a variety of local and state regulations. Failure to comply with one or more of these regulations could result in fines, restrictions on its operations, or losses of permits that could result in the Company ceasing operations. While management of the Company believes that the Company is in compliance with applicable local and state regulations as of June 30, 2025 and December 31, 2024, marijuana regulations continue to evolve and are subject to differing interpretations. In addition, the use, sale, and possession of cannabis in the United States, despite state laws, is illegal under federal law. However, individual states have enacted legislation permitting exemptions for various uses, mainly for medical and industrial use but also including recreational use. As a result of the differing state and federal laws, the Company may be subject to regulatory fines, penalties or restrictions in the future.

**Claims and Litigation**

From time to time, the Company may be involved in litigation relating to claims arising out of operations in the normal course of business. As of June 30, 2025 and December 31, 2024, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of the Company's operations. As of June 30, 2025 and December 31, 2024 there are also no proceedings in which any of the Company's directors, officers or affiliates is an adverse party to the Company or has a material interest adverse to the Company's interest.

**20.** **Earnings (Loss) Per Share** 

The following is a reconciliation for the calculation of net income (loss) attributable to the Company and the basic and diluted earnings (loss) per share for the six months ended June 30, 2025 and 2024:

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended** | **Six Months Ended** |
|  | **June 30, 2025** | **June 30, 2024** |
| Net Income (Loss) Attributable to the Company | $(2667766) | $(8097508) |
| Weighted-Average Shares Outstanding – Basic and Dilutes | 175085129 | 126128494 |
| **Earnings (Loss) Per Share Attributable to the Company – Basic and Diluted** | $**(0.02)** | $**(0.06)** |

---

Net loss attributable to the Company, as reported, is adjusted for dividends and various other adjustments as defined in ASC 260, *Earnings Per Share*.

After adjustments as defined in ASC 360, if the Company is in a net loss position, diluted loss per share is the same as basic loss per share when the issuance of shares on the exercise of convertible debentures, warrants, share options are anti-dilutive. After adjustments, as defined in ASC 360, if the Company is in a net income position, diluted earnings per share includes options, warrants, convertible debt and contingently issuable shares that are determined to be dilutive using the treasury stock method for all equity instruments issuable in equity units and the "if converted" method for the Company's convertible debt.

**21.** **Subsequent Events** 

The Company has evaluated subsequent events for adjustment to or disclosure in its consolidated financial statements through the date of this report, and has not identified any recordable or disclosable events, not otherwise reported in these consolidated financial statements or the notes thereto, except those noted below.

Subsequent to June 30, 2025, the Company has raised gross proceeds of C$2,090,890 through the issuance of 8,363,560 units (the "Units") at a price of C$0.25 per Unit, representing approximately twice the size of the original offering.

Each Unit consists of one common share and one common share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share of the Company at a price of C$0.30 for a period of 24 months from the closing date of the offering.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of LEEF Brands, Inc.

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of LEEF Brands, Inc. (the "Company") as of December 31, 2024 and 2023, and the related consolidated statements of operations and comprehensive income (loss), statements of shareholders' equity (deficit), and consolidated statements of cash flows for the years ended December 31, 2024 and 2023, and the related notes (collectively referred to as the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023 and the results of its operations and its cash flows for the years ended December 31, 2024 and 2023, in conformity with accounting principles generally accepted in the United States of America.

**Going Concern**

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has incurred recurring losses from operations and had not yet achieved profitable operations as of December 31, 2024 which raises substantial doubt about its ability to continue as a going concern. Management's plans regarding these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) ("PCAOB") and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

**Emphasis of Matter**

As described in Note 4 to the consolidated financial statements, the Company transitioned from International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") to accounting principles generally accepted in the United States of America ("U.S. GAAP") effective for the year ended December 31, 2024 and 2023. Our audits included auditing the adjustments made to transition the Company's consolidated financial statements from IFRS to U.S. GAAP.

**Critical Audit Matter**

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing separate opinions on the critical audit matter or on the accounts or disclosures to which they relate.

***Revenue Transactions and Improper Revenue Recognition***

Auditing the Company's revenue recognition required significant judgment in applying ASC 606. Specifically, auditing management's evaluation of customer agreements involved assessing the identification and allocation of standalone transaction prices to performance obligations under ASC 606.

As such, Revenue Transactions and Improper Revenue Recognition was identified as a Critical Audit Matter. This was due to the highly regulated nature of the cannabis industry, the manual processes used to track sales, the high volume of transactions, and the risk of improper cut-off. As a result, auditing revenue required significant auditor judgment, particularly in evaluating the completeness, existence, and accuracy of reported revenue.

Improper revenue recognition could materially misstate the financial statements and key financial indicators, especially given the Company's growth initiatives and external financing efforts, which may create pressure to meet revenue targets.

To address these risks, we reviewed and assessed customer agreements and management's evaluation of key terms and related disclosures. We also performed substantive audit procedures to test the appropriateness, accuracy, and completeness of recorded revenue transactions.

*/s/ M&K CPAS, PLLC*

 

We have served as the Company's auditor since 2023.

The Woodlands, Texas April 30, 2025

**LEEF BRANDS, INC.**

**CONSOLIDATED BALANCE SHEETS**

---

| | | |
|:---|:---|:---|
|  | December 31, 2024 | December 31, 2023 |
| ASSETS |  |  |
| Current assets |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $2731979 | $6414587 |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 2394542 | 2530058 |
| &nbsp;&nbsp;&nbsp;Inventory, net | 4222917 | 3288861 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits | 621527 | 948402 |
| &nbsp;&nbsp;&nbsp;Acquisition deposit |  | 1445483 |
| &nbsp;&nbsp;&nbsp;Deferred costs and other current assets | 507186 | - |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 10478151 | 14627391 |
| Non-current assets |  |  |
| &nbsp;&nbsp;&nbsp;Property and equipment, net | 26042616 | 21887587 |
| &nbsp;&nbsp;&nbsp;Right of use assets, net | 2439888 | 2447069 |
| &nbsp;&nbsp;&nbsp;Intangible assets, net | 2232153 | 3051000 |
| &nbsp;&nbsp;&nbsp;Goodwill |  | 1567485 |
| &nbsp;&nbsp;&nbsp;Assets held for sale | 1445483 |  |
| &nbsp;&nbsp;&nbsp;Other assets | 338685 | 415249 |
| Total assets | $42976976 | $43995781 |
| LIABILITIES AND STOCKHOLDERS' DEFICIT |  |  |
| Current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities | $6613793 | $6985617 |
| &nbsp;&nbsp;&nbsp;Holdback liability | 935618 | 935618 |
| &nbsp;&nbsp;&nbsp;Related party payables | 1488866 | 71458 |
| &nbsp;&nbsp;&nbsp;Current portion of notes payable | 1337490 | 821623 |
| &nbsp;&nbsp;&nbsp;Current portion of convertible debentures |  | 8937666 |
| &nbsp;&nbsp;&nbsp;Current portion of related party consideration payable | 500000 |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities, short term | 302736 | 208624 |
| &nbsp;&nbsp;&nbsp;Tax payable | 12836039 | 9414086 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 24014542 | 27374692 |
| Non-current liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Lease liabilities, net of current portion | 2282743 | 2349650 |
| &nbsp;&nbsp;&nbsp;Notes payable, net of current | 9246547 | 8062890 |
| &nbsp;&nbsp;&nbsp;Convertible debentures, net of current and discount | 9976000 |  |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, long term | 9007907 | 1094316 |
| &nbsp;&nbsp;&nbsp;Deferred tax liability | 883181 | 1011576 |
| &nbsp;&nbsp;&nbsp;Contingent consideration | - | 3255000 |
| Total liabilities | 55410920 | 43148124 |
| Stockholders' Deficit |  |  |
| &nbsp;&nbsp;&nbsp;Common stock; no par value; unlimited shares authorized; 172,984,299 and 118,380,930 shares issued and outstanding as of December 31, 2024 and 2023, respectively |  |  |
| &nbsp;&nbsp;&nbsp;Additional paid-in capital | 109650027 | 94667939 |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss | (336536) | (343850) |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (121747435) | (97125921) |
| &nbsp;&nbsp;&nbsp;Total equity attributable to stockholders' of Leef Brands Inc. | (12433944) | (2801832) |
| &nbsp;&nbsp;&nbsp;Non-controlling interest | - | 3649489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity (deficit) | (12433944) | 847657 |
| Total liabilities and stockholders' equity (deficit) | $42976976 | $43995781 |

---

The accompanying notes are an integral part of these audited consolidated financial statements.

**LEEF BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)**

---

| | | |
|:---|:---|:---|
|  | Year ended | Year ended |
|  | December 31, 2024 | December 31, 2023 |
| Net revenue | $28495447 | $30609351 |
| Cost of sales | 19555279 | 20591417 |
| &nbsp;&nbsp;&nbsp;Gross profit | 8940168 | 10017934 |
| Operating expenses |  |  |
| &nbsp;&nbsp;&nbsp;Advertising and promotion | 440866 | 694821 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1900819 | 1944104 |
| &nbsp;&nbsp;&nbsp;Wages and salaries | 5878649 | 5856086 |
| &nbsp;&nbsp;&nbsp;Office and general expenses | 2983487 | 2834298 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 18983 | 202424 |
| &nbsp;&nbsp;&nbsp;Legal and professional fees | 1373915 | 1789018 |
| &nbsp;&nbsp;&nbsp;Insurance expenses | 435138 | 462577 |
| &nbsp;&nbsp;&nbsp;Excise and other taxes | 55450 | 24532 |
| &nbsp;&nbsp;&nbsp;Lease expenses | 716118 | 701925 |
| &nbsp;&nbsp;&nbsp;Loss on impairment of goodwill, intangible and long-lived assets | 2661384 | 30026458 |
| &nbsp;&nbsp;&nbsp;Other gains (losses) | 1397 | 1211330 |
| &nbsp;&nbsp;&nbsp;Travel and business development | 459807 | 541064 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 16926013 | 46288637 |
| &nbsp;&nbsp;&nbsp;Loss from operations | (7985845) | (36270703) |
| Other expense |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 5155288 | 4575578 |
| &nbsp;&nbsp;&nbsp;Loss (gain) on extinguishment of debt | 2935029 | (1978) |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | (855000) |  |
| &nbsp;&nbsp;&nbsp;Change in fair value derivative liability | 6113485 | (399066) |
| &nbsp;&nbsp;&nbsp;Other expense (income) | (20376) | (516974) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | 13328426 | 3657560 |
| Loss before provision for income taxes | $(21314271) | $(39928263) |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | 3307243 | (4959178) |
| Net loss and comprehensive loss | $(24621514) | $(34969085) |
| Foreign currency translation | 7314 | (174961) |
| Net loss and comprehensive loss attributable to non-controlling interest | - | (142689) |
| Net loss and comprehensive loss attributable to shareholders of Leef Brands, Inc. | $(24628828) | (34651435) |
| Earnings (loss) per common share - basic and diluted | $(0.17) | $(0.30) |
| Weighted average common shares outstanding - basic and diluted | 142595527 | 115964196 |

---

The accompanying notes are an integral part of these audited consolidated financial statements.

**LEEF BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT)**

**For the Year Ended December 31, 2024 and 2023**

***Activity for the Year Ended December 31, 2024***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Common Stock | Common Stock | | | | | | |
|  | Shares | Amount | Additional <br>Paid-In<br>Capital | Accumulated<br>Deficit | Accumulated Other <br>Comprehensive<br>Loss | Total equity attributable to shareholders of <br>Leef Brands,<br>Inc. | Non- <br>controlling<br>Interest | Total <br>Stockholders'<br> Equity<br>(Deficit) |
| Balance, December 31, 2023 | 118380930 | $- | $94667939 | $(97125921) | $(343850) | $(2801832) | $3649489 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 847657 |
| Net loss |  |  |  | (24621514) |  | &nbsp;&nbsp;&nbsp;&nbsp; (24621514) |  | (24621514) |
| Common shares issued for cash | 12635059 |  | 1047533 |  |  | 1047533 |  | 1047533 |
| Common shares issued for services | 1500000 |  | 333333 |  |  | 333333 |  | 333333 |
| Common shares issued for earnout considerations | 17491400 |  | 1900000 |  |  | 1900000 |  | 1900000 |
| Foreign currency translation |  |  |  |  | 7314 | 7314 |  | 7314 |
| Common shares issued for conversion of notes payable and debentures | 22395948 |  | 7083853 |  |  | 7083853 |  | 7083853 |
| Acquisition of remaining non-controlling interest in Aya Biosciences | 580962 |  | 3649489 |  |  | 3649489 | (3649489) |  |
| Stock compensation expense |  |  | 428108 |  |  | 428108 |  | 428108 |
| Equity based compensation for restricted stock unit grants |  |  | 539772 |  |  | 539772 |  | 539772 |
| Balance, December 31, 2024 | 172984299 | $- | $109650027 | $(121747435) | $(336536) | $(12433944) | $- | $(12433944) |

---

***Activity for the Year Ended December 31, 2023***

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Common Stock | Common Stock | | | | | | |
|  | Shares | Amount | Additional <br>Paid-In<br>Capital | Accumulated<br>Deficit | Accumulated Other <br>Comprehensive<br>Loss | Total equity attributable to shareholders of <br>Leef Brands,<br>Inc. | Non- <br>controlling<br>Interest | Total <br>Stockholders' <br>Equity |
| Balance, December 31, 2022 | 106424310 | $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - | $86408660 | $(62299525) | $(168889) | $23940246 | $3792178 | $&nbsp;&nbsp;&nbsp;&nbsp; 27732424 |
| Net loss |  |  |  | (34826396) |  | &nbsp;&nbsp;&nbsp;&nbsp; (34826396) | (142689) | (34969085) |
| Common shares issued in connection with acquisition of The Leaf, LLC | 8360755 |  | 4049000 |  |  | 4049000 |  | 4049000 |
| Common shares issued for cash | 472153 |  | 100000 |  |  | 100000 |  | 100000 |
| Common shares issued for services | 1896667 |  | 322433 |  |  | 322433 |  | 322433 |
| Foreign currency translation |  |  |  |  | (174961) | (174961) |  | (174961) |
| Dividends payable |  |  | (139271) |  |  | (139271) |  | (139271) |
| Dividends paid |  |  | (1210271) |  |  | (1210271) |  | (1210271) |
| Exercised restricted stock units | 607493 |  |  |  |  |  |  |  |
| Stock compensation expense |  |  | 779085 |  |  | 779085 |  | 779085 |
| Equity based compensation for restricted stock unit grants |  |  | 143888 |  |  | 143888 |  | 143888 |
| Debt discount recognized on non-current notes payable issued |  |  | 3809659 |  |  | 3809659 |  | 3809659 |
| Common shares issued for conversion of notes payable and debentures | 619552 |  | 404756 |  |  | 404756 |  | 404756 |
| Balance, December 31, 2023 | 118380930 | $- | $94667939 | $(97125921) | $(343850) | $(2801832) | $3649489 | $847657 |

---

The accompanying notes are an integral part of these audited consolidated financial statements.

**LEEF BRANDS, INC.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS**

---

| | | |
|:---|:---|:---|
|  | Year ended | Year ended |
|  | December 31, 2024 | December 31, 2023 |
| Cash Flows from Operating Activities |  |  |
| &nbsp;&nbsp;&nbsp;Net loss and comprehensive loss | $(24621514) | $(34969085) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1900819 | 1944104 |
| &nbsp;&nbsp;&nbsp;Share based compensation | 1301213 | 1245406 |
| &nbsp;&nbsp;&nbsp;Disposal of equipment | 202493 |  |
| &nbsp;&nbsp;&nbsp;Change in deferred taxes | (128395) | (8764120) |
| &nbsp;&nbsp;&nbsp;Loss on impairment of goodwill and intangible assets | 2414485 | 30026458 |
| &nbsp;&nbsp;&nbsp;Lease cost, net of repayment | 34387 |  |
| &nbsp;&nbsp;&nbsp;Amortization and extinguishment of debt discounts | 6750863 | 3214923 |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | 6113485 | (399066) |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration | (855000) |  |
| &nbsp;&nbsp;&nbsp;Amortization of finance liability discounts |  | 105483 |
| &nbsp;&nbsp;&nbsp;Loss on disposal of asset |  | 1211330 |
| &nbsp;&nbsp;&nbsp;Forgiveness of notes payable |  | (268058) |
| &nbsp;&nbsp;&nbsp;Unrealized gain on crypto asset | (20376) |  |
| &nbsp;&nbsp;&nbsp;Loss on extinguishment of convertible debentures | 2935028 |  |
| &nbsp;&nbsp;&nbsp;Loss on impairment of prepaid assets and notes receivable | 246899 |  |
| Changes in operating assets and liabilities |  |  |
| &nbsp;&nbsp;&nbsp;Accounts receivable, net | 135516 | 654351 |
| &nbsp;&nbsp;&nbsp;Prepaid expenses and deposits | 232925 | 408461 |
| &nbsp;&nbsp;&nbsp;Deferred costs and other current assets | (507186) | 155405 |
| &nbsp;&nbsp;&nbsp;Inventory | (934056) | (70104) |
| &nbsp;&nbsp;&nbsp;Other assets | (76385) | 364739 |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities | (363768) | 1399585 |
| &nbsp;&nbsp;&nbsp;Holdback liability |  | 86065 |
| &nbsp;&nbsp;&nbsp;Related party payables | 767508 | (62352) |
| &nbsp;&nbsp;&nbsp;Tax payable | 3421953 | 3904298 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) operating activities | (1049106) | 187823 |
| Cash Flows from Investing Activities |  |  |
| &nbsp;&nbsp;&nbsp;Equipment purchase | (5919341) | (7609567) |
| &nbsp;&nbsp;&nbsp;Investment in intangible assets | (346777) |  |
| &nbsp;&nbsp;&nbsp;Cash acquired from acquisition | - | 326221 |
| &nbsp;&nbsp;&nbsp;Net cash used in investing activities | (6266118) | (7283346) |
| Cash Flows from Financing Activities |  |  |
| &nbsp;&nbsp;&nbsp;Issuance of common shares | 2277759 | 100000 |
| &nbsp;&nbsp;&nbsp;Financing arrangements | 241898 |  |
| &nbsp;&nbsp;&nbsp;Dividends paid |  | (1210271) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of notes payable | 1325574 | 12002440 |
| &nbsp;&nbsp;&nbsp;Repayment of notes | (469829) | (34305) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of related party note payable | 249900 |  |
| &nbsp;&nbsp;&nbsp;Repayment on finance liabilities | - | (478553) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by financing activities | 3625302 | 10379311 |
| Net increase (decrease) in Cash | (3689922) | 3283788 |
| Effect of foreign exchange translation | 7314 | (174961) |
| Cash, beginning of period | 6414587 | 3305760 |
| Cash, end of period | $2731979 | $6414587 |
| Supplemental disclosure of cash flow information |  |  |
| &nbsp;&nbsp;&nbsp;Cash paid for interest | $168038 | $56196 |
| Other non-cash investing and financing activities |  |  |
| &nbsp;&nbsp;&nbsp;Resale of note payable to related party | $472000 | $- |
| &nbsp;&nbsp;&nbsp;Conversion of convertible debentures and derivatives | $7083853 | $404756 |
| &nbsp;&nbsp;&nbsp;Recognition of derivative liability for warrants issued | $1230226 | $- |
| &nbsp;&nbsp;&nbsp;Acquisition of remaining interest in Aya Biosciences | $3649489 | $- |
| &nbsp;&nbsp;&nbsp;Assumption of lease liability in exchange for right of use asset | $268129 | $- |
| &nbsp;&nbsp;&nbsp;Stock payable | $1900000 | $- |
| &nbsp;&nbsp;&nbsp;Lease modification | $- | $730623 |
| &nbsp;&nbsp;&nbsp;Acquired licenses held for sale | $1445483 | $- |
| &nbsp;&nbsp;&nbsp;Discount recognized on note payable | $- | $3809659 |
| &nbsp;&nbsp;&nbsp;Shares issued for Acquisition of The Leaf at 73740, LLC | $- | $4049000 |

---

The accompanying notes are an integral part of these audited consolidated financial statements.

**LEEF BRANDS, INC.**

**Notes to the Consolidated Financial Statements**

**As of and for the years ended December 31, 2024 and 2023**

**1.** **Nature and Continuance of Operations** 

Leef Brands Inc. (the "Company") (Formerly Icanic Brands Company Inc.) was incorporated on September 15, 2011, under the laws of the province of British Columbia and is registered extra-provincially under the laws of Ontario. The Company is a cannabis branded products manufacturer based in California. The Company is a public company whose common shares are listed for trading on the Canadian Securities Exchange ("CSE") under the symbol "LEEF" which became effective December 7, 2022. The head office of the Company is located at Suite 2500 Park Place, 666 Burrard Street, Vancouver, BC V6C 2X8.

These consolidated financial statements have been prepared on a going concern basis, which contemplates continuity of normal business activities and the realization of assets and discharge of liabilities in the normal course of business. As of December 31, 2024, the Company has yet to generate a positive net income. The Company is actively seeking additional sources of financing. In assessing whether the going concern assumption is appropriate, management takes into account all available information about the future, which is at least, but not limited to, within one year of the issuance of the financial statements. Management is aware, in making its assessment, of uncertainties related to events or conditions that may cast substantial doubt upon the entity's ability to continue as a going concern that these uncertainties are material and, therefore, that it may be unable to realize its assets and discharge its liabilities in the normal course of business. Accordingly, they do not give effect to adjustments that would be necessary should the Company be unable to continue as a going concern and therefore to realize its assets and discharge its liabilities and commitments in other than the normal course of business and at amounts different from those in the accompanying consolidated financial statements. See liquidity section of "*Note 2 – Basis of Presentation*" for further discussion on liquidity needs.

*Reverse recapitalization*

 

On April 20, 2022, the Company acquired all of the common stock of LEEF Holdings, Inc. ("LEEF") pursuant to a merger agreement dated January 21, 2022, among the Company, its wholly-owned subsidiary, Icanic Merger Sub, Inc. and LEEF. The Company issued an aggregate of 75,971,700 common shares, which were subject to a contractual hold period in accordance with the terms of the merger agreement, with an initial one-eighth of the shares received to be released on the one-year anniversary of closing and the remaining shares to be released in equal one-eighth installments every three months thereafter. In addition the Company issued 23,823,595 common shares with a fair value $34,606,154 as the consideration paid for the acquisition of LEEF.

Pursuant to the terms of the merger agreement, former LEEF shareholders will also be entitled to receive the following contingent earn-out payments (the "Earn-Out Payments"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. On
 July 20, 2023, an amount equal to 10 % of (A) the product equal to two times the trailing
 12-months ()"**TTM**") revenue calculated for the 12-month period immediately
 following closing minus (B) US$120 million (the "**First Earn-Out Payment** ");

2. On
 July 20, 2024, an amount equal to 10 % of (A) the product equal to two times the TTM revenue
 calculated for the 12-month period immediately following the date that is one year from the
 closing date minus (B) the US$120 million and minus (C) any amounts paid pursuant to the
 First Earn-Out Payment (the "**Second Earn-Out Payment** "); and

3. On
 July 20, 2025, an amount equal to 10 % of (A) the product equal to two times the TTM revenue
 calculated for the 12-month period immediately following the date that is two years from
 the closing date minus (B) US$120 million, minus (C) any amounts paid pursuant to the First
 Earn-Out Payment, minus (D) any amounts paid pursuant to the Second Earn-Out Payment.

**1.** **Nature and Continuance of Operations (continued)** 

Each of the Earn-Out Payments will be satisfied in full through the issuance of common shares of the Company based on the 30-day volume weighted average trading price of the shares on the Canadian Securities Exchange for the period ending on the business day prior to the issuance.

LEEF Holdings, Inc. was deemed the accounting acquirer in the Business Combination based on an analysis of the criteria outlined in Accounting Standards Codification (ASC") 805, *Business Combinations*. This determination was primarily based on LEEF Holdings, Inc.'s stockholders prior to the Business Combination having a majority of the voting interests in the Company following the closing of the Business Combination, LEEF Holdings, Inc.'s operations comprising the ongoing operations of the Company, LEEF Holdings, Inc.'s designees comprising half of the board of directors of Company, and LEEF Holdings, Inc.'s senior management comprising the senior management of the Company. Accordingly, for accounting purposes, the Business Combination was treated as the equivalent of LEEF Holdings, Inc. issuing stock for the net assets of Icanic Brands, Inc. accompanied by a recapitalization. The net assets of Icanic Brands, Inc. are stated at historical cost.

While Icanic Brands, Inc. was the legal acquirer in the Business Combination, because LEEF Holdings, Inc. was deemed the accounting acquirer, the historical financial statements of LEEF Holdings, Inc. became the historical financial statements of the Company upon the consummation of the Business Combination. As a result, the financial statements included in this report reflect (i) the historical operating results of LEEF Holdings, Inc. prior to the Business Combination; (ii) the combined results of the Company and LEEF Holdings, Inc. following the closing of the Business Combination; (iii) the assets and liabilities of LEEF Holdings, Inc. at their historical cost; and (iv) the Company's equity structure before and after the Business Combination.

*Share Consolidation Plan*

 

On October 29, 2024, the Company announced a 10:1 share consolidation plan. The Consolidation has consolidated the Company's issued and outstanding common shares based on ten pre-consolidation shares for one post-consolidation share. The Consolidation aims to improve the Company's capital structure, increase its attractiveness to institutional investors, and provide a more stable trading platform. Upon completion of the Consolidation, the Company had approximately 162,762,651 common shares issued and outstanding, subject to rounding adjustments. The Consolidation took effect November 18, 2024. Accordingly, all periods presented have been adjusted retroactively to reflect the 10:1 share consolidation plan.

**2.** **Basis of Presentation** 

**Statement of compliance**

These consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America ("GAAP"), which reflects a change in the basis of accounting from International Financial Reporting Standards ("IFRS"). See Note 4 for further details. The policies set out below have been consistently applied to all periods presented unless otherwise noted.

These consolidated financial statements were approved and authorized for issuance by the Company's Board of Directors on April 30, 2025.

**Liquidity**

Historically, the Company's primary source of liquidity has been its operations, capital contributions made by equity investors and debt issuances. The Company is currently meeting its current operational obligations as they become due from its current working capital and from operations. However, the Company has sustained losses since inception and may require additional capital in the future. As of and for the year ended December 31, 2024, the Company had an accumulated deficit of $121,747,435, a net loss and comprehensive loss attributable to the Company of $24,621,514, and net cash used in operating activities of $1,049,106. Despite uncertainties related to events or conditions that may raise substantial doubt about the Company's ability to continue as a going concern, the Company estimates that based on current business operations and working capital, it will continue to meet its obligations.

The Company is generating cash from revenues and deploying its capital reserves to acquire and develop assets capable of producing additional revenues and earnings over both the immediate and near term. Capital reserves are primarily being utilized for capital expenditures, facility improvements, product development and marketing.

Liquidity risk is the risk that the Company will not be able to meet its financial obligations associated with financial liabilities. The Company manages liquidity risk through the management of its capital structure. The Company's approach to managing liquidity is to ensure that it will have sufficient liquidity to settle obligations and liabilities when due.

**Basis of presentation and measurement**

These consolidated financial statements have been prepared on a historical cost basis except for derivative financial instruments, which are measured at fair value through earnings, as explained in the accounting policies below. Historical costs are generally based upon the fair value of the consideration given in exchange for goods and services. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. In estimating the fair value of an asset or a liability, the Company takes into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

**Functional currency**

All figures presented in the consolidated financial statements are reflected in United States dollars; however, the functional currency of the Company includes Canadian dollars and United States dollars. The Company's subsidiaries functional currency is the United States dollar.

Transactions in foreign currencies are initially recorded in the Company's functional currency at the exchange rate at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange at the end of each reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when fair value is determined.

All gains and losses on translation of these foreign currency transactions are included in earnings.

On consolidation, the assets and liabilities of foreign operations reported in their functional currencies are translated into United States dollars, the Company's presentation currency, at period-end exchange rates. Income and expenses, and cash flows of foreign operations are translated into United States dollars using average exchange rates. Exchange differences resulting from translating foreign operations are recognized in accumulated other comprehensive loss.

**Reclassifications**

Certain amounts in the consolidated financial statements for the prior year have been reclassified to conform to the current year presentation. These reclassifications had no impact on consolidated net earnings, consolidated financial position, or consolidated cash flows.

**Basis of consolidation**

These consolidated financial statements as of and for the years ended December 31, 2024 and 2023, include the accounts of the Company, its wholly-owned subsidiaries. Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly and indirectly, to govern the financial and operating policies of an entity and be exposed to the variable returns from its activities. The financial statements of subsidiaries are included in the condensed interim consolidated financial statements from the date that control commences until the date that control ceases.

The following is a list of the Company's wholly-owned and partially owned operating subsidiaries:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Consolidated Subsidiary or Entity** | <br>**Purpose** | **Jurisdiction** | **Attributable**<br>**Interest** |
| Aya Biosciences, Inc. | (1) Pharmaceutical | US | 100% |
| Anderson Development SB, LLC. | Cultivation | US | 100% |
| Paleo Paw Corp. | CBD Wellness | US | 100% |
| Payne Distribution, LLC. | Distribution | US | 100% |
| LEEF Brands, Inc. | Holding Company | Canada | 100% |
| LEEF Holdings, Inc. | Holding Company | US | 100% |
| Preferred Brand LLC. | Manufacturing | US | 100% |
| Seven Zero Seven, LLC. | Manufacturing | US | 100% |
| LEEF Management, LLC. | Payroll | US | 100% |
| 1127466 B.C. Ltd. | Real Estate | Canada | 100% |
| 1200665 B.C. Ltd. | Real Estate | Canada | 100% |
| SCRCB, LLC. | Cultivation | US | 100% |
| The Leaf at 73740, LLC. | Dispensary | US | 100% |
| Green Cross Nevada LLC. | Manufacturing | US | 100% |
| V6E Holdings, LLC. | Manufacturing | US | 100% |
| LEEF Labs NY LLC. | Manufacturing | US | 100% |
| LEEF Labs NJ, LLC, | Manufacturing | US | 100% |

---

(1) *As of December 31, 2024, the Company owned a 100 % interest in Aya Biosciences, Inc. As of December 31, 2024, the Company owned a 55.65 % interest in Aya Biosciences, Inc.* 

 

All inter-company transactions and balances have been eliminated in the consolidated financial statement presentation.

**Recently Adopted Accounting Standards**

*ASU 2023-07*

 

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which is intended to improve the financial reporting by requiring disclosure of incremental segment information on an annual and interim basis for all public entities. The Company adopted ASU 2023-07 beginning with its 2024 annual report. See Note 23 – Segment Information for the Company's segment disclosures.

*ASU 2023-08*

 

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2023-08, Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets. The ASU requires that crypto assets meeting certain criteria be measured at fair value, with changes in fair value recognized in net income each reporting period. The Company adopted ASU 2023-08 effective January 1, 2024, on a prospective basis.

Upon adoption, crypto assets are measured at fair value, with changes in fair value recorded within other income (expense) in the consolidated statements of operations. Adoption of this standard did not result in a cumulative-effect adjustment to the opening balance of retained earnings as of the adoption date. Disclosures required by the ASU, including information about significant crypto asset holdings and changes therein, have been included in Note 10 – Intangible Asset to the consolidated financial statements.

**3.** **Significant Accounting Policies** 

The preparation of the consolidated financial statements requires that the Company's management make judgments and estimates of effects of uncertain future events on the carrying amounts of the Company's assets and liabilities at the end of the reporting period. Actual future outcomes could differ from present estimates and judgments, potentially having material future effects on the Company's consolidated financial statements. Estimates are reviewed on an ongoing basis and are based on historical experience and other facts and circumstances. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively.

The significant accounting policies used by the Company are as follows:

**Accounts receivable**

Accounts receivable are recognized initially at fair value and subsequently measured at amortized cost, less any provisions for impairment. Financial assets measured at amortized cost are assessed for impairment at the end of each reporting period. Impairment provisions are estimated using the expected credit loss impairment model where any expected future credit losses are provided for, irrespective of whether a loss event has occurred at the reporting date. Estimates of expected credit losses take into account the Company's collection history, deterioration of collection rates during the average credit period, as well as observable changes in and forecasts of future economic conditions that affect default risk. Where applicable, the carrying amount of a trade receivable is reduced for any expected credit losses through the use of an allowance for doubtful accounts ("AFDA") provision. Changes in the AFDA provision are recognized in the consolidated statement of operations and comprehensive income (loss). When the Company determines that no recovery of the amount owing is possible, the amount is deemed irrecoverable and the financial asset is written off. As of December 31, 2024 the Company recorded an allowance for doubtful accounts of $1,144,531 (December 31, 2023 - $987,005).

**Inventory**

Inventory is valued at the lower of cost and net realizable value. The Company's inventory is comprised of cannabis related products and derivatives. The cost of inventory is calculated using the weighted average method and comprises all costs of purchase necessary to bring the goods to sale. Net realizable value represents the estimated selling price for products sold in the ordinary course of business less the estimated costs necessary to make the sale. Cost of cannabis biomass is comprised of initial third-party acquisition costs, plus analytical testing costs. Costs of extracted cannabis oil inventory are comprised of initial acquisition cost of the biomass and all direct and indirect processing costs including labor related costs, consumables, materials, packaging supplies and analytical testing costs. Packaging and supplies are initially valued at cost and subsequently at the lower of cost and net realizable value.

Management uses the most reliable evidence available in determining the net realizable value of inventories. Actual selling prices may differ from estimates, based on market conditions at the time of sale. Allowances are made against obsolete or damaged inventory and charged to cost of sales. As of December 31, 2024 and 2023, the Company recorded a reserve inventory in the amount of $143,115 and $162,390, respectively.

**Financial instruments**

The Company applies fair value accounting for all financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities that are required to be recorded at fair value, the Company considers all related factors of the asset by market participants in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as inherent risk, transfer restrictions, and credit risk.

The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels, and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and

Level 3 – Inputs for the asset or liability that are not based on observable market data.

For further details, see Note 18 – Financial Instruments and Financial Risk Management

**Property and equipment**

The Company records property and equipment at cost less accumulated amortization and accumulated impairment losses. It recognizes amortization to write off the cost of assets less their residual values over their useful lives. The depreciation rates applicable to each category of property and equipment are as follows:

---

| | |
|:---|:---|
| Buildings | 15 – 20 years |
| Office furniture and software | 3 – 5 years |
| Machinery and equipment | 10 years |
| Vehicles | 8 years |
| Construction in progress | Not depreciated |
| Leasehold improvements | Shorter of lease term or economic life |

---

An item of property and equipment is de-recognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on disposal of the asset, determined as the difference between the net disposal proceeds and the carrying amount of the asset, is recognized in income (loss) from operations. Where an item of property and equipment and deferred costs consist of major components with different useful lives, the components are accounted for as separate items of property and equipment and deferred expenditures. Expenditures incurred to replace a component of an item of property and equipment that is accounted for separately, including major inspection and overhaul expenditures, are capitalized.

**Goodwill**

Goodwill represents the excess of the purchase price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets acquired. Goodwill is allocated to the reporting unit or group of reporting units which are expected to benefit from the synergies of the combination. Goodwill is not subject to amortization.

The goodwill balance is assessed for impairment annually or when facts and circumstances indicate that it is impaired. Goodwill is tested for impairment at a reporting unit level by comparing the carrying value to the recoverable amount, which is determined as the of fair value less costs of disposal. Any excess of the carrying amount over the recoverable amount is the impaired amount. The recoverable amount estimates are categorized as Level 3 according to the fair value hierarchy. Impairment charges are recognized in the consolidated statements of operations and comprehensive income (loss). Goodwill is reported at cost less any accumulated impairment. Goodwill impairments are not reversed. As of December 31, 2024, the Company determined that its remaining goodwill balance of $1,567,485 was fully impaired.

**Intangible assets**

The Company's intangible assets consist of trademarks and licenses. Intangible assets acquired are measured on initial recognition at cost, while the cost of intangible assets acquired in a business combination is initially recorded at their fair values as at the date of acquisition. It recognizes amortization to write off the cost of assets less their residual values over their useful lives, using certain methods and rates. The intangibles as of December 31, 2024 and December 31, 2023, were a trademark and licenses, which have been determined to have a 10-year useful life.

An intangible asset is derecognized on disposal or when no future economic benefits are expected from use or disposal. Any gain or loss arising from the derecognition of an intangible asset is measured as the difference between the net disposal proceeds and the carrying amount of the asset and is recognized in income (loss) from operations. Following initial recognition, intangible assets with indefinite useful lives are carried at cost less accumulated amortization and any accumulated impairment losses.

**Digital assets**

Effective January 1, 2024, the Company adopted ASU 2023-08, *Intangibles—Goodwill and Other—Crypto Assets (Subtopic 350-60): Accounting for and Disclosure of Crypto Assets*. Crypto assets are initially recorded at cost, including any transaction fees. This update requires entities to subsequently measure certain crypto assets at fair value, with changes in fair value recognized in net income each reporting period. Fair value is determined using prices quoted in active markets at the reporting date.

The Company holds digital assets that meet the scope of this guidance. These assets are:

● Intangible in nature

● Do not provide enforceable rights to goods or services

● Are created or reside on a distributed ledger

● Are secured through cryptography

● Are fungible

● Are not issued by the reporting entity or its related parties

**Impairment of long-lived assets**

Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

For the purpose of testing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (reporting unit). An impairment loss is recognized for the amount, if any, by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the asset's fair value less cost to sell. The Company will assess for further impairment on an annual basis or as unexpected events happen.

**Leases**

The Company assesses whether a contract is or contains a lease at inception of the contract, as well as whether each lease represents an operating lease or a finance lease in accordance with ASC 842, *Leases*. A lease is recognized as a right-of-use asset and corresponding liability at the commencement date.

The Company has operating leases for certain facilities. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date. Each finance lease payment included in the lease liability is apportioned between the repayment of the liability and a finance cost. The finance cost is recognized in "interest expense" in the consolidated statements of operations and comprehensive income (loss) over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability. Lease liabilities represent the net present value of fixed lease payments (including in-substance fixed payments); variable lease payments based on an index, rate, or subject to a fair market value renewal condition; amounts expected to be payable by the lessee under residual value guarantees, the exercise price of a purchase option if the lessee is reasonably certain to exercise that option, and payments of penalties for terminating the lease, if it is probable that the lessee will exercise that option.

The Company's lease liability is recognized net of lease incentives receivable. The lease payments are discounted using the interest rate implicit in the lease or, if that rate cannot be determined, the lessee's incremental borrowing rate. The period over which the lease payments are discounted is the expected lease term, including renewal and termination options that the Company is reasonably certain to exercise.

Payments associated with short-term leases and leases of low-value assets are recognized as an expense on a straight-line basis in general and administration and sales and marketing expense in the consolidated statements of operations and comprehensive income (loss). Short-term leases are defined as leases with a lease term of 12 months or less.

Variable lease payments that do not depend on an index, rate, or subject to a fair market value renewal condition are expensed as incurred and recognized in costs of goods sold, general and administration or sales and marketing expense, as appropriate given how the underlying leased asset is used, in the consolidated statement of comprehensive income (loss).

Right-of-use assets are measured at cost, which is calculated as the amount of the initial measurement of lease liability plus any lease payments made at or before the commencement date, any initial direct costs and related restoration costs. The right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the useful life of the underlying asset. The depreciation is recognized from the commencement date of the lease.

**Derivatives**

Derivatives are initially measured at fair value and are subsequently remeasured at fair value. If the transaction price does not equal to fair value at the point of initial recognition, management measures the fair value of each component of the investment and any unrealized gains or losses at inception are either recognized in comprehensive income (loss) or deferred and recognized over the term of the investment, depending on whether the valuation inputs are based on observable market data. The resulting unrealized gain or loss at inception and subsequent changes in fair value are recognized in comprehensive income (loss) for the period.

The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the Consolidated Balance Sheets as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the Consolidated Statements of Financial Position date. Critical estimates and assumptions used in the model are discussed in "*Note 13 – Derivative Liabilities*".

**Convertible debentures**

Convertible debentures are financial instruments that are accounted for separately dependent on the nature of their components. The identification of such components embedded within a convertible debenture requires significant judgment given that it is based on the interpretation of the substance of the contractual agreement. Where the conversion option has a fixed conversion rate, the financial liability, which represents the obligation to pay coupon interest on the convertible debentures in the future, is initially measured at its fair value and subsequently measured at amortized cost. The residual amount is accounted for as an equity instrument at issuance. Where the conversion option has a variable conversion rate, the conversion option is recognized as a derivative liability measured at fair value. The determination of the fair value is also an area of significant judgment given that it is subject to various inputs, assumptions and estimates including contractual future cash flows, discount rates, credit spreads and volatility.

Fees directly attributable to the transactions are apportioned to the financial liability, derivative liability and equity components in proportion to the allocation of proceeds.

**Additional Paid-In Capital**

Common shares are classified as equity. Transaction costs directly attributable to the issue of common shares and share options are recognized as a deduction from equity, net of any tax effects.

Where additional paid-in capital is issued, or received, as non-monetary consideration and the fair value of the asset received or given up is not readily determinable, the fair market value of the shares is used to record the transaction. The fair market value of the shares is based on the trading price of those shares on the appropriate stock exchange on the date of the agreement to issue or receive shares as determined by the board of directors.

**Foreign currency**

These consolidated financial statements are presented in U.S. dollars, which is also one of the functional currencies of the certain subsidiaries along with Canadian dollars being the functional currency for other subsidiaries. Each subsidiary determines its own functional currency and items included in the financial statements of each subsidiary are measured using that functional currency.

iii) Transactions and Balances in Foreign Currencies

Foreign currency transactions are translated into the functional currency of the respective entity, using the exchange rates prevailing at the dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the remeasurement of monetary items at year-end exchange rates are recognized in income (loss) from operations. Non-monetary items measured at historical cost are translated using the exchange rates at the date of the transaction and are not retranslated. Non-monetary items measured at fair value are translated using the exchange rates at the date when fair value was determined.

iv) Foreign operations

On consolidation, the assets and liabilities of foreign operations are translated into U.S. dollars at the exchange rate prevailing at the reporting date and their income statements are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on the translation are recognized in other comprehensive income and accumulated in the foreign currency translation reserve in equity. On disposal of a foreign operation, the component of other comprehensive income relating to that particular foreign operation is recognized in earnings and recognized as part of the gain or loss on disposal.

**Income taxes**

Tax expense recognized in income (loss) from operations comprises the sum of current and deferred taxes not recognized in other comprehensive income or directly in equity.

 

*Current Tax*

 

Current tax assets and/or liabilities comprise those claims from, or obligations to, fiscal authorities relating to the current or prior reporting periods that are unpaid at the reporting date. Current tax is payable on taxable profit, which differs from income (loss) from operations in the financial statements. Calculation of current tax is based on tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period.

*Deferred Tax*

 

Deferred taxes are calculated using the liability method on temporary differences between the carrying amounts of assets and liabilities and their tax bases. Deferred tax assets and liabilities are calculated, without discounting, at tax rates that are expected to apply to their respective period of realization, provided they are enacted or substantively enacted by the end of the reporting period. Deferred tax liabilities are always provided for in full.

Deferred tax assets are recognized to the extent that it is probable that they will be able to be utilized against future taxable income. Deferred tax assets and liabilities are offset only when the Company has a right and intention to offset current tax assets and liabilities from the same taxation authority.

Changes in deferred tax assets or liabilities are recognized as a component of tax income or expense in net income (loss), except where they relate to items that are recognized in other comprehensive income or directly in equity, in which case the related deferred tax is also recognized in other comprehensive income or equity, respectively.

**Revenue recognition**

The Company generates revenue primarily from the sale of cannabis related activities. The Company uses the following five-step contract-based analysis of transactions to determine if, when and how much revenue can be recognized:

---

| |
|:---|
| &nbsp;&nbsp;1. Identify the contract with a customer; |
| &nbsp;&nbsp;2. Identify the performance obligation(s) in the contract; |
| &nbsp;&nbsp;3. Determine the transaction price; |
| &nbsp;&nbsp;4. Allocate the transaction price to the performance obligation(s) in the contract; and |
| &nbsp;&nbsp;5. Recognize revenue when or as the Company satisfies the performance obligation(s). |

---

Revenue from the sale of cannabis is generally recognized when control over the goods has been transferred to the customer. Payment for sales is typically due prior to shipment. Payment for wholesale transactions is due within a specified time period as permitted by the underlying agreement and the Company's credit policy upon the transfer of goods to the customer. The Company generally satisfies its performance obligation and transfers control to the customer upon delivery and acceptance by the customer. Revenue is recorded at the estimated amount of consideration to which the Company expects to be entitled.

*Bulk product and white label services revenue*

 

The Company recognizes revenue from bulk product sales and white label services. Product sales are generally recognized when the Company satisfies the performance obligations and transfers control over the goods to the customer upon delivery and acceptance by the customer. Revenue is recorded at the estimated amount of consideration to which the Company expects to be entitled. Returns are performed when the product does not meet the requested type, concentration, etc. and ordered by the customer. Returns and exchanges are reported and recorded at the same time as revenue transactions.

**Share-based compensation**

As part of its remuneration, the Company grants restricted stock units and also stock options and warrants to buy common shares of the Company to its employees. An individual is classified as an employee when the individual is an employee for legal or tax purposes (direct employee) or provides services similar to those performed by a direct employee, including directors of the Company. The fair value of employee services is determined indirectly by reference to the fair value of the equity instruments granted. This fair value is measured at the grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period.

Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instrument granted or vested if the option vests over a period. This fair value is measured at the grant date, using the Black-Scholes option pricing model, and is recognized over the vesting period.

All share-based remuneration is ultimately recognized as an expense in the consolidated statements of operations and comprehensive income (loss) with a corresponding credit to contributed surplus. Upon exercise of share options, the proceeds received net of any directly attributable transactions costs and the amount originally credited to contributed surplus are allocated to share capital. When options expire unexercised the related value remains in additional paid-in capital.

**Business combination**

A business combination is a transaction or event in which an acquirer obtains control of one or more businesses and is accounted for using the acquisition method. The total consideration paid for the acquisition is the fair value equity instruments issued in exchange for control of the acquiree at the acquisition date. The acquisition date is the date when the Company obtains control of the acquiree. The identifiable assets acquired, and liabilities assumed are recognized at their acquisition date fair values, except for deferred taxes and share-based payment awards where GAAP provides exceptions to recording the amounts at fair value. Goodwill represents the difference between total consideration paid and the fair value of the net-identifiable assets acquired. Acquisition costs incurred are expensed in the consolidated statement of operations and comprehensive income (loss).

Contingent consideration is measured at its acquisition date fair value and is included as part of the consideration transferred in a business combination, subject to the applicable terms and conditions. Contingent consideration that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity. Contingent consideration that is classified as an asset or a liability is remeasured at subsequent reporting dates in accordance with ASC 825, *Financial Instruments,* with the corresponding gain or loss recognized in the consolidated statements of operations and comprehensive income (loss).

Based on the facts and circumstances that existed at the acquisition date, management will perform a valuation analysis to allocate the purchase price based on the fair values of the identifiable assets acquired and liabilities assumed on the acquisition date. Management has one year from the acquisition date to confirm and finalize the facts and circumstances that support the finalized fair value analysis and related purchase price allocation. Until such time, these values are provisionally reported and are subject to change. Changes to fair values and allocations are retrospectively adjusted in subsequent periods.

In determining the fair value of all identifiable assets acquired and liabilities assumed, the most significant estimates generally relate to contingent consideration and intangible assets. Management exercises judgment in estimating the probability and timing of when earn-outs are expected to be achieved, which is used as the basis for estimating fair value. Identified intangible assets are fair valued using appropriate valuation techniques which are generally based on a forecast of the total expected future net cash flows of the acquiree. Valuations are highly dependent on the inputs used and assumptions made by management regarding the future performance of these assets and any changes in the discount rate applied.

Acquisitions that do not meet the definition of a business combination are accounted for as asset acquisitions. Consideration paid for an asset acquisition is allocated to the individual identifiable assets acquired and liabilities assumed based on the fair value of the goods and services received. Asset acquisitions do not give rise to goodwill. Any consideration paid in excess of the identifiable assets and liabilities assumed is expensed to the consolidated statements of operations and comprehensive income (loss).

**Related party transactions**

Parties are considered to be related if one party has the ability, directly or indirectly, to control the other party or exercise significant influence over the other party in making financial and operating decisions. Related parties may be individuals or corporate entities. A transaction is considered to be a related party transaction when there is a transfer of resources or obligations between related parties.

**Loss per share**

The Company calculates basic loss per share by dividing the loss for the period by the weighted average number of common shares outstanding during the year. It calculates diluted loss per share in a similar manner, except that it increases the weighted average number of common shares outstanding, using the treasury stock method, to include common shares potentially issuable from the assumed exercise of stock options and other instruments, if dilutive. In the Company's case, these potential issuances are "anti-dilutive" as they would decrease the loss per share; consequently, the amounts calculated for basic and diluted loss per share are the same.

**Significant accounting judgments and estimates**

The preparation of consolidated financial statements in conformity with US GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported revenues and expenses during the year. Although management uses historical experience and its best knowledge of the amount, events or actions to form the basis for judgments and estimates, actual results may differ from these estimates. Actual future outcomes could differ from present estimates and judgments, potentially having material future effects on the Company's consolidated financial statements. Revisions to estimates and the resulting effects on the carrying amounts of the Company's assets and liabilities are accounted for prospectively.

The following are the critical judgments and estimates that management has made in the process of applying the Company's accounting policies and that have the most significant effect on the amounts recognized in the consolidated financial statements:

Business combinations and asset acquisitions

Judgement is required to determine if the Company's acquisition represented a business combination or an asset purchase.

In a business combination, substantially all identifiable assets, liabilities and contingent liabilities acquired are recorded at the date of acquisition at their respective fair values. One of the most significant areas of judgment and estimation relates to the determination of the fair value of these assets and liabilities, including the fair value of contingent consideration, if applicable. If any intangible assets are identified, depending on the type of intangible asset and the complexity of determining its fair value, an independent external valuation expert may develop the fair value, using appropriate valuation techniques, which are generally based on a forecast of the total expected future net cash flows. These valuations are linked closely to the assumptions made by management regarding the future performance of the assets concerned and any changes in the discount rate applied. In certain circumstances where estimates have been made, the Company may obtain third-party valuations of certain assets, which could result in further refinement of the fair-value allocation of certain purchase prices and accounting adjustments.

Functional currency translations

The functional currency of the Company and each of the Company's subsidiaries is the currency of the primary economic environment in which the respective entity operates. Such determination involves certain judgements to identify the primary economic environment. The Company reconsiders the functional currency of an entity if there is a significant change in the events and/or conditions which determine the primary economic environment. In the event of a change of functional currency, the Company revaluates the classification of financial instruments. Upon the change in the parent Company's functional currency during the year, the financing warrants, which were initially classified as a derivative liability on the consolidated statements of financial position, were reassessed and reclassified as equity instruments at the fair value on the date of the functional currency change.

Inventory

Inventory is carried at the lower of cost or net realizable value. The determination of net realizable value involves significant management judgement and estimates, including the estimation of future selling prices.

Valuation of share-based payments

The Company uses the Black-Scholes Option Pricing Model for valuation of share-based payments. Option pricing models require the input of subjective assumptions including expected price volatility, and interest rate. The Company determines the term of share-based payments in accordance with ASC 718, *Stock Compensation* (the "plain vanilla" method). Changes in the input assumptions can materially affect the fair value estimate and the Company's earnings and equity reserves.

The valuation of shares and other equity instruments issued in non-cash transactions. Generally, the valuation of non-cash transactions is based on the value of the goods or services received. When non-cash transactions are entered into with employees and those providing similar services, the non-cash transactions are measured at the fair value of the consideration given up using market prices.

Estimated useful life of long-lived assets

Judgment is used to estimate each component of a long-lived asset's useful life and is based on an analysis of all pertinent factors including, but not limited to, the expected use of the asset and in the case of an intangible asset, contractual provisions that enable renewal or extension of the asset's legal or contractual life without substantial cost, and renewal history. If the estimated useful lives were incorrect, it could result in an increase or decrease in the annual amortization expense, and future impairment charges or recoveries.

Impairment of long-lived assets

Long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the asset may not be recoverable. For the purpose of measuring recoverable amounts, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units). The recoverable amount is the higher of an asset's fair value less costs to sell and value in use (being the present value of the expected future cash flows of the relevant asset or cash-generating unit). An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount.

Provisions

Provisions are accrued for liabilities with uncertain timing or amounts, if, in the opinion of management, it is both probable that a future event will confirm that a liability had been incurred at the date of the consolidated financial statements and the amount can be reasonably estimated. In cases where it is not possible to determine whether such a liability has occurred, or to reasonably estimate the amount of loss until the performance of some future event, no accrual is made until that time. In the ordinary course of business, the Company may be party to legal proceedings which include claims for monetary damages asserted against the Company. The adequacy of provisions is regularly assessed as new information becomes available.

Leases

Leases require lessees to discount lease payments for finance leases using the rate implicit in the lease if that rate is readily available. If that rate cannot be readily determined, the lessee is required to use its incremental borrowing rate. The Company generally uses the incremental borrowing rate when initially recording real estate leases as the implicit rates are not readily available as information from the lessor regarding the fair value of underlying assets and initial direct costs incurred by the lessor related to the leased assets is not available.

The Company determines the incremental borrowing rate as the interest rate the Company would pay to borrow over a similar term the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The Company used an incremental borrowing rate between 12% - 15%.

Leases require lessees to estimate the lease term. In determining the period which the Company has the right to use an underlying asset, management considers the non-cancellable period along with all facts and circumstances that create an economic incentive to exercise an extension option, or not to exercise a termination option.

Fair values

The individual fair values attributed to the different components of a financing transaction, notably derivative financial instruments, convertible debentures and loans, are determined using valuation techniques. The Company uses judgment to select the methods used to make certain assumptions and derive estimates. Significant judgment is also used when attributing fair values to each component of a transaction upon initial recognition, measuring fair values for certain instruments on a recurring basis and disclosing the fair values of financial instruments subsequently carried at amortized cost. These valuation estimates could be significantly different because of the use of judgment and the inherent uncertainty in estimating the fair value of instruments that are not quoted or observable in an active market. See "*Note 17 – Financial Instruments and Financial Risk Management*" for summaries of the Company's financial instruments as of December 31, 2024 and 2023.

Allowance for doubtful accounts

The Company makes estimates for allowances that represent its estimate of potential losses in respect of trade receivables. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that may have been incurred but not yet specifically identified. The Company's allowance is determined by historical experiences, and considers factors including the aging of the balances, the customer's creditworthiness, current economic conditions, expectation of bankruptcies and the economic volatility in the markets/locations of customers.

Segmented information

The Company currently operates in two reportable segments: wholesale concentrates and retail. The wholesale concentrate segment includes the propagation, nursery, flowering canopy, drying, processing, manufacturing and distribution of cannabis concentrates. The retail segment includes Company owned and operated retail cannabis store in the state of California. Certain economic characteristics such as production processes, types of products, classes of customers as well as distribution models differ between segments. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the Chief Operating Decision Maker ("CODM"), who is the Company's chief executive officer and chief financial officer, in deciding how to allocate resources and assess the Company's financial and operational performance. As of December 31, 2024, all of the Company's operations are in the United States of America in the State of California. Intercompany sales and transactions are eliminated in consolidation. See Note 23 - Segment Information for further information.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Conversion from IFRS to GAAP** 

The Company has retrospectively converted its Consolidated Financial Statements from International Financial Reporting Standards ("IFRS") to GAAP.

The significant differences between IFRS and GAAP as they related to these financial statements are as follows:

**(a)** **Leases** 

Under IFRS, prior to the adoption of GAAP, the Company, as lessee, applied the single lease model that is similar to the accounting for a finance lease under GAAP. The expense recognition presented a higher portion of the total expense earlier in the term as a combination of straight-line depreciation of the right-of-use asset and the effective interest rate method applied to the lease liability results in a decreasing rate of interest expense recognition throughout the lease term.

Under GAAP, there is dual classification lease accounting model for lessees: finance leases and operating leases. The Company, as lessee, classified all its leases as operating leases and recognizes a single lease expense, including both a right-of-use asset depreciation component and an interest component, on a straight-line basis throughout the term. This resulted in lease expense being reclassified from interest expense into operating expense under GAAP which decreased interest expense by $467,889 for the year ended December 31, 2023. Additionally, due to the change in the expense recognition method, the total resulting decrease in lease related expense from the transition from IFRS to GAAP was $200,177 for the year ended December 31, 2023.

Additionally, under GAAP, the right-of-use asset is reported separately on the consolidated balance sheet from property and equipment. Accordingly, this balance was split out separately as of December 31, 2023.

**(b)** **Notes Payable** 

On May 25, 2023, the Company entered into a Loan Agreement with ADSB for a total of $7,000,000 which is zero-interest bearing. The loan was issued in connection with 5,687,500 detached warrants which are immediately exercisable at a price of CAD$0.08 per share (USD $0.06) for a period of 60 months from the date of issuance. Upon full repayment of the loan the Company will transfer 720,000 Class A Units of ADSB to the lender. Under IFRS, the repayment provisions of the loan contained sufficient uncertainty such that neither the warrants nor the ADSB transfer were determined to create a debt discount against the note.

Under GAAP, both the warrants and the ADSB transfer were determined to create a debt discount totaling $3,809,659 that is amortized over the term of the loan. During the year ended December 31, 2023, amortization of the debt discount of $662,549 was recorded.

**(c)** **Warrants** 

During 2023, the Company issued warrants to purchase the Company's common stock for a total of 6,462,898 shares. Under IFRS, these warrants were accounted for by recording stock based compensation of $957,517. Due to the warrants being exercisable in a currency other than the Company's functional currency, under GAAP, these warrants were accounted for as a derivative liability to be recorded at fair value upon issuance and adjusted to fair value at each reporting date. Accordingly, stock based compensation for the year ended December 31, 2023 was reduced by $957,517 and a derivative liability of $946,649 was established as of December 31, 2023.

**(d)** **Amortization of Intangible Assets** 

Under IFRS, the tradename and license intangible assets acquired in connection with the acquisition of The Leaf in January 2023 (see Note 5) were determined to have an indefinite life and were not subject to amortization. Under GAAP, these intangible assets were determined to have a definite life, which was determined to be a useful life of 10 years. Accordingly, intangible amortization for the year ended December 31, 2023 of $339,000 was recorded.

**(e)** **Income Taxes** 

Prior to the adoption of GAAP, the Company accounted for income taxes pursuant to International Accounting Standard 12, Income Taxes ("IAS 12"), International Financial Reporting Interpretations Committee 23, Uncertainty over Income Tax Treatments ("IFRIC 23"), and International Accounting Standard 34, Interim Reporting ("IAS 34"). Upon the adoption of GAAP, the Company now accounts for income taxes pursuant to Accounting Standards Codification 740, Income Taxes ("ASC 740") as noted below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Deferred
 Tax

Deferred tax has been adjusted to remove any backwards tracing components that are permitted under IAS 12 and prohibited under ASC 740. Specifically, backwards tracing is prohibited with regard to adjustments to the beginning of the year balance of a valuation allowance because of a change in judgment about the realizability of related deferred tax assets in future years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Valuation
 Allowance

The realizability of deferred tax assets was considered under GAAP and the determination to maintain a full valuation allowance in the United States was made. This is a substantially similar result under IFRS. For footnote presentation purposes, all deferred tax assets, liabilities, and valuation allowances are now reported on a gross basis rather than a net basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Uncertain
 Tax Positions

The Company recognizes and measures any uncertain tax positions in accordance with ASC 740 rather than IFRIC 23. Accordingly, the Company recognizes and measures uncertain tax positions based on a two-step process outlined in the Income Tax section of the Significant Accounting Policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Stock
 Based Compensation

Under IFRS, the measurement of the stock-based compensation deferred tax asset is based on an estimate of the future tax deduction based on the current stock price at each reporting period. When the expected tax benefits from equity awards exceed the recorded cumulative recognized expense multiplied by the tax rate, the tax benefit up to the amount of the tax effect of the cumulative book compensation expense is recorded in the consolidated statement of operations and comprehensive income (loss); the excess is recorded in equity. When the expected tax benefit is less than the tax effect of the cumulative amount of recognized expense, the entire tax benefit is recorded in the consolidated statement of operations and comprehensive income (loss).

Under GAAP, the Company measures the stock-based compensation deferred tax asset based on the amount of compensation cost recognized for financial statement purposes. Changes in stock price do not result in a remeasurement of the related deferred tax asset. Upon settlement of expiration, excess tax benefits and tax deficiencies are recognized within the provisions for income taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Other
 Pre-tax Changes

The tax effects resulting from other accounting changes to pre-tax income are included in the tax provision under GAAP.

The reconciliation between IFRS net loss and GAAP net loss for the year ended December 31, 2023 in the Company's consolidated statements of operations and comprehensive income (loss) is as follows:

---

| | | |
|:---|:---|:---|
|  | Note | Year Ended<br> December 31, 2023 |
| Net loss and comprehensive loss - IFRS |  | $(34206432) |
| &nbsp;&nbsp;&nbsp;Operating expenses | (a), (c), (d) | 281088 |
| &nbsp;&nbsp;&nbsp;Interest expenses | (a), (b) | (185660) |
| &nbsp;&nbsp;&nbsp;Change in fair value of derivative liability | (c) | (946649) |
| &nbsp;&nbsp;&nbsp;Other immaterial changes |  | 88568 |
| &nbsp;&nbsp;&nbsp;Net loss and comprehensive loss - GAAP |  | $(34969085) |

---

Net losses per share were as follows:

---

| | | |
|:---|:---|:---|
|  | Years Ended December 31, 2023 | Years Ended December 31, 2023 |
|  | IFRS | GAAP |
| Net loss per share attributable to ordinary shareholders: |  |  |
| &nbsp;&nbsp;&nbsp;Basic and diluted | $(0.30) | $(0.30) |

---

Conversion adjustments impacting the Company's consolidated balance sheet as of December 31, 2023 were as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Note | IFRS | Adjustments | GAAP |
| Assets: |  |  |  |  |
| Accounts receivable, net |  | $2441490 | $88568 | $2530058 |
| Property and equipment, net | (a) | 23856852 | (1969265) | 21887587 |
| Right of use assets, net | (a) |  | 2447069 | 2447069 |
| Intangible assets, net | (d) | 3390000 | (339000) | 3051000 |
| &nbsp;&nbsp;&nbsp;Total conversion adjustments |  |  | $227372 |  |
| Liabilities and Stockholders' Equity: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Accounts payable and other accrued liabilities |  | $6924900 | $60717 | $6985617 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, short term | (a) | 175858 | 32766 | 208624 |
| &nbsp;&nbsp;&nbsp;Lease liabilities, net of current portion | (a) | 2104789 | 244861 | 2349650 |
| &nbsp;&nbsp;&nbsp;Notes payable, net of current | (b) | 11210000 | (3147110) | 8062890 |
| &nbsp;&nbsp;&nbsp;Derivative liabilities, long term | (c) | 147667 | 946649 | 1094316 |
| &nbsp;&nbsp;&nbsp;Share capital | (b), (c) | 91815797 | 2852142 | 94667939 |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (a), (b), (c), (d) | (96363268) | (762653) | (97125921) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total conversion adjustments |  |  | $227372 |  |

---

**5.** **Business Combination** 

**Acquisition of The Leaf**

As of March January 11, 2023, the Company entered into a Membership Interest Purchase Agreement with The Leaf at 73740, LLC ("The Leaf"), a dispensary in Palm Desert, California, to acquire 100% of the outstanding interest in The Leaf. For the consideration of the interests, the Company issued 7,633,697 common shares valued at approximately $3.7 million in addition to working capital and holdback consideration amounts totaling approximately $1.2 million. As of December 31, 2024, the remaining holdback consideration amount was $935,618.

Acquired tangible assets were valued at estimates of their current fair values. The valuation of acquired intangible assets consisting of the intangibles noted above were determined based on management's estimates and consultation with an independent appraiser. The discounted cash flow method was used in applying the income approach to determine the fair value of acquired intangible assets. Significant assumptions inherent in the valuation method for acquired intangible assets are employed and included, but are not limited to, prospective financial information, terminal value, and discount rates. When performing the discounted cash flow method for acquired intangible assets, the Company incorporates the use of projected financial information and a discount rate that are developed using market participant-based assumptions. The cash-flow projections are based on multi-year financial forecasts developed by management that include revenue projections, capital spending trends, and investment in working capital to support anticipated revenue growth, which are regularly reviewed by management. The selected discount rate considers the risk and nature of the comparative companies and the rates of return market participants would require to investing their capital in the Company.

The following table summarizes the acquisition-date fair value of the consideration transferred and purchase price allocation for the fair value amounts of the assets acquired and liabilities assumed at the date of acquisition, January 11, 2023:

Schedule of Fair Value Amounts of the Assets Acquired and Liabilities Assumed

---

| | |
|:---|:---|
| **Total Consideration:** |  |
| Stock issued: | $3939000 |
| Indemnity holdback and stock payable | 959000 |
| **Total Consideration** | $**4898000** |
| **Accounting of Net Assets Acquired:** |  |
| Cash | $326221 |
| Accounts receivable | 8870 |
| Inventories | 236818 |
| Other current assets | 6634 |
| Property and equipment | 47784 |
| Tradename intangible | 1540000 |
| License intangible | 1850000 |
| Right of use asset | 1447903 |
| Accounts payable and accrued liabilities | (571714) |
| Lease liability | (1447903) |
| Deferred tax liability | (1011576) |
| Income taxes payable | (29523) |
| Total identifiable net assets | 2403514 |
| Goodwill *(1)* | 2494486 |
| **Total Net Assets Acquired** | $4898000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;*1.* *The goodwill arising from the acquisition represents expected synergies, future income and growth, and other intangibles that do not qualify for separate recognition. As part of the Company's accounting policy for impairment, the Company assessed impairment for goodwill and intangibles as of December 31, 2023, including the assets acquired above. Goodwill related to the acquisition of the Leaf was impaired by $927,000 during the year ended December 31, 2023 and impaired by an additional $1,567,485 during the year ended December 31, 2024, see Note 9.* 

**6.** **Property and Equipment** 

As of December 31, 2024 and 2023, the property and equipment consists of the following:

Schedule of Property and Equipment

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Cost** | <br>**Buildings and land** | **Office equipment and software** | <br>**Machinery and equipment** | **Vehicles** | **Leasehold improvements** | **Total** |
| Balance as of January 1, 2023 | $15304955 | $193892 | $5570345 | $287535 | $692886 | $22049613 |
| &nbsp;&nbsp;&nbsp;Additions | 7097559 | 36431 | 473577 |  |  | 7607567 |
| &nbsp;&nbsp;&nbsp;Disposals and transfers | (473577) | - | (812845) | - | - | (1286422) |
| Balance as of December 31, 2023 | $21928937 | $230323 | $5231077 | $287535 | $692886 | $28370758 |
| &nbsp;&nbsp;&nbsp;Additions | 4042955 |  | 1582988 | 293398 |  | 5919341 |
| &nbsp;&nbsp;&nbsp;Disposals and transfers | 1682826 | (10885) | (1202765) | 16217 | (687886) | (202493) |
| **Balance as of December 31, 2024** | $**27654718** | $**219438** | $**5611300** | $**597150** | $**5000** | $**34087606** |
| **Accumulated Depreciation** |  |  |  |  |  |  |
| Balance as of January 1, 2023 | $(3632381) | $(110811) | $(1030835) | $(103319) | $- | $(4877346) |
| &nbsp;&nbsp;&nbsp;Depreciation | (601818) | (45319) | (928154) | (30534) | - | (1605825) |
| Balance as of December 31, 2023 | $(4234199) | $(156130) | $(1958989) | $(133853) | $- | $(6483171) |
| &nbsp;&nbsp;&nbsp;Depreciation | (1504289) | (27854) | 52013 | (77132) | (4557) | (1561819) |
| **Balance as of December 31, 2024** | $**(5738488)** | $**(183984)** | $**(1906976)** | $**(210985)** | $**(4557)** | $**(8044990)** |
| **Net Book Value** |  |  |  |  |  |  |
| **December 31, 2024** | $**21916230** | $**35454** | $**3704324** | $**386165** | $**443** | $**26042616** |
| **December 31, 2023** | $**17694738** | $**74193** | $**3272088** | $**153682** | $**692886** | $**21887587** |

---

There was depreciation expense and amortization expense for the years ended December 31, 2024 and 2023 of $1,561,819 and $1,605,825, respectively. These amounts were included as operating expenses on the consolidated statements of operations and comprehensive income (loss) for the years ended December 31, 2024 and 2023.

In August 3, 2023, the Company acquired the 1,900-acre Salisbury Canyon Ranch in Santa Barbara, California for the purposes of cannabis cultivation. This property was financed by a $7 million note payable (see Note 14).

On January 1, 2023, the Company disposed of 100% of its interests in De Krown Enterprises LLC. The Company recorded an impairment on the disposal long-lived assets of De Krown for the year ended December 31, 2022. In accordance with US GAAP, long-lived assets are reviewed for impairment upon the occurrence of events or changes in circumstances indicating that the carrying value of the asset may not be recoverable and an impairment loss should be recorded if the recoverable amount is significantly lower than the carrying value. As such Management performed the assessment and has recorded a loss on impairment of De Krown long-lived assets totaling $822,549. No further analysis or loss was deemed necessary as of December 31, 2023. See "Note 3 – Significant Accounting Policies" for further discussion on the Company's policy surrounding the impairment of long-lived assets.

**7.** **Inventory** 

As of December 31, 2024 and 2023, inventory consists of the following:

Schedule of Inventory

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Raw materials | $1349923 | $835186 |
| Work-in-process | 1243542 | 944873 |
| Finished goods – cannabis related products | 1629452 | 1508802 |
| Total inventory | $4222917 | $3288861 |

---

**8.** **Acquisition Deposit** 

On May 21, 2019, the Company entered into a share exchange agreement (the "Definitive Agreement") among the Company, 1200665 B.C. Ltd., a private British Columbia company ("1200665BC"), whereby the Company will acquire all of the issued and outstanding shares of 1200665BC. 1200665BC, have pending Share Purchase Agreements ("SPA") with V6E and Sullivan Park, whom are beneficial owners of cannabis cultivation and manufacturing licenses in the state of Nevada. The Company sought regulatory approval for the transfer of ownership from the State of Nevada. Upon receipt of regulatory approval, the transaction with 1200665BC was closed. As consideration, the Company issued 30,645,161 common shares with a fair value of $11,645,161 and settled the remaining purchase price of $12,500,000 through the issuance of 40,322,580 common shares. The acquisition deposit represents funds and equity advanced to these Entities. Upon regulatory approval, the Company will assess whether the acquired business meets the definition under ASC 805, *Business Combinations*, and the acquisition deposit will be the purchase price. The acquisition deposit was eliminated upon regulatory approval in 2024.

In the fourth quarter of 2022, it was determined by Management that certain acquisitions noted above were revalued based on initial expectations of valuations being much higher than determined at December 31, 2022. Although the Management reduced the expected value of certain acquisitions, there were still material value to warrant a deposit asset and this is evidenced by Letters of Intent ("LOI's") that are included as an asset on the accompanying balance sheets as Acquisition Deposits. These deposits total $1.64 million and are based on the LOI's in place at the time these financial statements were available to be issued. As of December 31, 2023, the acquisition deposit balance was $1,445,483. As of December 31, 2024, there is no longer a balance for licenses or acquisition deposits that were recognized as intangible assets as of the current period end (See *Note 11 – Assets Held for Sale*).

**9.** **Goodwill** 

As of December 31, 2024 and 2023, goodwill was $0 and $1,567,485, respectively. During the year ended December 31, 2023, the Company recorded goodwill of $2,494,485 as a result of a business combination in January 2023. See "*Note 5 – Business Combinations*" for further information on the business combination transaction. For the year ended December 31, 2023, the Company recorded a $927,000 impairment loss on the balance of goodwill. For the year ended December 31, 2024, the Company recorded a $1,567,485 impairment loss on the balance of goodwill. See "*Note 3 – Significant Accounting Policies*" for managements position on impairment of long-lived assets.

**10.** **Intangible Assets** 

As of December 31, 2024 and 2023, intangible assets were $2,232,153 and $3,051,000, respectively. The Company also acquired Bitcoin cryptocurrency at a cost of $346,777. In accordance with ASC 350-60, the Bitcoin is measured at fair value using prices quoted in active markets at the reporting date, with unrealized gains and losses recognized in earnings. During the year ended December 31, 2023, the Company acquired trademark and license assets of $1,540,000 and $1,850,000, respectively, as a result of a business combination on January 11, 2023. See "*Note 5 – Business Combinations*" for further information. As of December 31, 2023, management determined that a $29,300,000 impairment was deemed necessary on assets related to the Icanic acquisition on April 20, 2022. As of December 31, 2024, management determined that a $847,000 impairment was deemed necessary for trademark intangible assets.

As of December 31, 2024 and 2023, intangible assets consisted of the following:

Schedule of Intangible Assets

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Cost** | **Tradenames** | **Licenses** | **Crypto Currency** | **Total** |
| Balance as of January 1, 2023 | $8400000 | $20900000 | $- | $29300000 |
| &nbsp;&nbsp;&nbsp;Additions | 1540000 | 1850000 |  | 3390000 |
| &nbsp;&nbsp;&nbsp;Impairment | (8400000) | (20900000) | - | (29300000) |
| Balance as of December 31, 2023 | $1540000 | $1850000 | $- | $3390000 |
| &nbsp;&nbsp;&nbsp;Additions |  |  | 346777 | 346777 |
| &nbsp;&nbsp;&nbsp;Change in fair value |  |  | 20376 | 20376 |
| &nbsp;&nbsp;&nbsp;Impairment | (847000) | - | - | (847000) |
| **Balance as of December 31, 2024** | $**693000** | $**1850000** | $**367153** | $**2910153** |
| **Accumulated Amortization** |  |  |  |  |
| Balance as of January 1, 2023 | $- | $- | $- | $- |
| &nbsp;&nbsp;&nbsp;Amortization | (154000) | (185000) | - | (339000) |
| Balance as of December 31, 2023 | $(154000) | $(185000) | $- | $(339000) |
| &nbsp;&nbsp;&nbsp;Amortization | (154000) | (185000) | - | (339000) |
| **Balance as of December 31, 2024** | $**(308000)** | $**(370000)** | $**-** | $**(678000)** |
| **Net Book Value** |  |  |  |  |
| **December 31, 2024** | $**385000** | $**1480000** | $**367153** | $**2232153** |
| **December 31, 2023** | $**1386000** | $**1665000** | $**-** | $**3051000** |

---

Future amortization of intangible assets are as follows:

Schedule of Future Amortization of Intangible Assets

---

| | |
|:---|:---|
| Year Ending December 31, |  |
| 2025 | $233125 |
| 2026 | 233125 |
| 2027 | 233125 |
| 2028 | 233125 |
| 2029 | 233125 |
| Thereafter | 699375 |
| Total Future Amortization | $1865000 |

---

**11.** **Assets Held for Sale** 

As of December 31, 2024, the Company has classified certain long-lived assets as held for sale in accordance with ASC 360-10-45-9. These assets met the criteria for classification as held for sale, including management's commitment to a plan to sell, active marketing at a price reasonable in relation to fair value, and the expectation that the sale will be completed within one year. The asset held for sale consists of a cultivation and processing cannabis license located in Clark County, Nevada, with a carrying value of $1,445,483. These licenses are not currently being utilized in the Company's operations, and management is actively pursuing a sale to a third party. In the prior year, as of December 31, 2023, the licenses were included in the acquisition deposit line item on the balance sheet, as the transfer of the licenses had not yet been completed. Following the successful transfer in 2024, the assets were reclassified to assets held for sale.

No impairment loss was recognized upon reclassification, as the estimated fair value less costs to sell exceeds the carrying amount.

**12.** **Accounts Payable and Other Accrued Liabilities** 

As of December 31, 2024 and 2023, accounts payable and other accrued liabilities consists of the following:

Schedule of Accounts Payable and Other Accrued Liabilities

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Accounts payable | $3511303 | $4132405 |
| Accrued liabilities | 3102490 | 2853212 |
| Total accounts payable and other accrued liabilities | $6613793 | $6985617 |

---

**13.** **Derivative liabilities** 

During June 2019, the Company entered into a private placement financing by issuing approximately $14,671,000 senior secured convertible debentures (see *"Note 15 - Convertible Debentures"*) and 14,671 share purchase warrants that contain a non-fixed conversion ratio into the Company's shares and exercise price, respectively. During September 2022, 75% of the senior secured convertible debentures balance was modified such that that the conversion price into the Company's common stock was denominated in a currency other than the Company's functional currency. As a result, the conversion options did not have a fixed conversion rate.

In accordance with ASC 825, *Financial Instruments,* a contract to issue a variable number of equity shares fails to meet the definition of equity. Accordingly, such a contract or instrument would be accounted for as a derivative liability and measured at fair value with changes in fair value recognized in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) at each period-end.

During the year ended December 31, 2024 and 2023, the Company has issued additional warrants that contain a non-fixed conversion ratio in that the conversion price into the Company's stock was denominated in a currency other than the Company's functional currency.

The Company used Monte Carlo to estimate the fair value of the derivative liabilities for the senior secured convertible debentures. The Company used the Black-Scholes model to estimate the fair value of the derivative liabilities for the warrants. The Monte Carlo and Black-Scholes pricing models use Level 3 inputs in their valuation models.

The following assumptions were used by management to determine the fair value of the derivative liabilities as of December 31, 2024 and 2023:

Schedule of Assumptions were used by Management to determine the Fair Value of the Derivative Liabilities

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Expected stock price volatility | 104.62% - 186.74 | 60.00% |
| Risk-free annual interest rate | 3.99% - 5.42 | 4.38% |
| Expected life (years) | 0.28 – 3.39 | 1.44 |
| Share price | $0.07 - $0.21 | $0.33 |

---

A reconciliation of the beginning and ending balance of derivative liabilities and change in fair value of the derivative liabilities is as follows for the years ended December 31, 2024 and 2023:

Schedule of Derivative Liabilities and Changes in Fair Value of Derivative Liabilities

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Balance as of beginning of period | $1094316 | $1555037 |
| &nbsp;&nbsp;&nbsp;Change in fair value | 6113485 | (399066) |
| &nbsp;&nbsp;&nbsp;Loss from extinguished liability | 2895140 |  |
| &nbsp;&nbsp;&nbsp;Conversion to common stock and warrants | (3149687) |  |
| &nbsp;&nbsp;&nbsp;Initial recognition of debenture warrants | 824427 |  |
| &nbsp;&nbsp;&nbsp;Initial recognition of new warrants | 1230226 |  |
| &nbsp;&nbsp;&nbsp;Extinguishment of conversion option | - | (61655) |
| Balance as of end of the period | 9007907 | 1094316 |
| Less: Derivative liabilities, short term | - | - |
| Derivative liabilities, long term | $9007907 | $1094316 |

---

**14.** **Notes Payable** 

As of December 31, 2024 and 2023, notes payable consisted of the following:

Schedule of Note Payable

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Secured promissory notes dated November 2018 through September 2024 issued to finance equipment acquisitions which mature from December 2023 through October 2030, and bear interest of 3.12% to 10.99% with principal and interest payments due monthly. | $225140 | $18183 |
| Small Business Administration loan which bears interest at 1% with interest payments due monthly. | 11000 | 11000 |
| Secured promissory note dated May 25, 2023, which matures in May 2028 | 4846714 | 3852890 |
| Secured promissory note dated September 19, 2023, which matures in September 2028 and bears interest of 4% | 4199000 | 4199000 |
| Secured promissory note dated July 8, 2024, which matures on March 31, 2025, and bears interest of 15% | 249900 |  |
| Secured promissory note dated July 3, 2024, which matures in July 2026 and bears interest of 10% | 1000000 |  |
| Secured promissory note dated September 20, 2024, which matures on March 31, 2025, and bears interest of 19% | 52283 |  |
| Secured promissory note dated February 8 , 2023, which matures in November 2023, and bears interest of 10% |  | 299440 |
| Secured promissory note dated July 1 ,2023, which matures in February 2024, and bears interest of 12% | - | 504000 |
| Total notes payable | $10584037 | $8884513 |
| Less current portion | (1337490) | (821623) |
| **Total notes payable, net of current** | $**9246547** | $**8062890** |

---

A reconciliation of the beginning and ending balances of notes payable for the years ended December 31, 2024 and 2023, is as follows:

Schedule of Reconciliation of Notes Payable

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Balance as of beginning of period | $8884513 | $548947 |
| &nbsp;&nbsp;&nbsp;Proceeds from notes payable | 1325574 | 12002440 |
| &nbsp;&nbsp;&nbsp;Financing arrangements | 241898 |  |
| &nbsp;&nbsp;&nbsp;Debt discount on notes payable |  | (3809659) |
| &nbsp;&nbsp;&nbsp;Amortization of debt discount | 993823 | 662549 |
| &nbsp;&nbsp;&nbsp;Resale of note payable to related party | (472000) |  |
| &nbsp;&nbsp;&nbsp;Interest classified to debt | 80058 |  |
| &nbsp;&nbsp;&nbsp;Conversions and settlement of notes payable |  | (485459) |
| &nbsp;&nbsp;&nbsp;Cash repayments | (469829) | (34305) |
| **Balance as of end of period** | $**10584037** | $**8884513** |

---

On May 25, 2023, the Company entered into a Loan Agreement with ADSB for a total of $7,000,000 which is zero-interest bearing. The loan was issued in connection with 5,687,500 detached warrants which are immediately exercisable at a price of CAD$0.08 per share (USD $0.06) for a period of 60 months from the date of issuance. Upon full repayment of the loan, which is expected in February 2027 the Company will transfer 720,000 Class A Units of ADSB to the lender. Both the warrants and the ADSB transfer were determined to create a debt discount totaling $3,809,659 that is amortized over the term of the loan. During the years ended December 31, 2024 and 2023, amortization of the debt discount of $993,824 and $662,549, respectively, were recorded. In June 2023, the Company was advanced $300,000 of the stated loan balance with expectation to receive the remainder in future tranches per the funding schedule. In August, the Company received additional tranches of funding of $3.6 million, related to the ADSB Loan Agreement. The Company received the outstanding balance during the fourth quarter of calendar year 2023.

On September 30, 2023, the Company entered into a Loan Agreement with the Salisbury Canyon Ranch, LLC for a total of $4,199,000 which bears interest at 4% per annum. The Company will make interest-only payments for a period of three years at which point blended interest and principal payments will be made for an additional two years, with a balloon payment due at that time.

**15.** **Convertible Debentures** 

As of December 31, 2024 and 2023, convertible debentures consisted of the following:

Schedule of Convertible Debentures

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Senior secured convertible promissory debentures dated September 2022, which matures on September 9, 2027 and bears interest at a rate of 11% | $9976000 | $11916948 |
| Total convertible debentures | 9976000 | 11916948 |
| Less unamortized discount | - | (2979282) |
| Total convertible debentures, net of discount | 9976000 | 8937666 |
| Less current portion | - | (8937666) |
| **Total convertible debentures, net of current and discount** | $**9976000** | $**-** |

---

A reconciliation of the beginning and ending balances of convertible debentures for the years ended December 31, 2024 and 2023, is as follows:

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Balance as of beginning of period | $8937666 | $6555633 |
| &nbsp;&nbsp;&nbsp;&nbsp;Conversions of debt and accrued interest *(1)* | (4718705) | (170341) |
| &nbsp;&nbsp;&nbsp;&nbsp;Extinguishment of debt discount | 1322533 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Amortization of debt discount | 4434506 | 2552374 |
| **Balance as of end of period** | $**9976000** | $**8937666** |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *Upon conversion, both common stock and warrants were issued. The value of the conversion feature and warrants recorded to equity was $3,189,575 , with $824,427 recorded as a derivative liability for warrants issued and netted against the transaction recorded to equity.* 

**Senior Debentures**

On June 6, 2019, the Company entered into a convertible senior secured debenture (the "Senior Debentures") in an aggregate principal amount not to exceed $35,000,000 with accredited investors and qualified institutional buyers wherein the Senior Debentures shall mature on June 6, 2022 and bear interest at a rate of 9.0%. The Senior Debentures are to be issued from time to time at the election of the Company pursuant to one or more subscription agreements.

The Senior Debentures contain two conversion features wherein the conversion rate is equal to $1,000 principal amount of debentures divided by the conversion price, which is the lesser of (i) the price that is a 25% discount to the liquidity event price and (ii) the price determined based on a pre-money enterprise value of the Company of $150,000,000. The initial conversion rate shall be determined immediately upon the consummation of a liquidity event and shall be subject to adjustment.

In the event that a liquidity event, as defined in the Senior Debentures agreement, is consummated, holders have the right, at the holder's option, to convert all or any portion of their Senior Debentures into the Company's common shares (the "Optional Conversion"). Additionally, at the Company's election, the Company has the right to convert all outstanding debentures into common shares if all of the following conditions are satisfied, with no further action by the holders (the "Mandatory Conversion"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) A
 liquidity event has been consummated;

(vi) The
 liquidity event price is at least 100% greater than the conversion price;

(vii) The
 common shares are listed on a recognized Canadian stock exchange or a national U.S. stock
 exchange; and

(viii) The
 daily VWAP of the common share is 20% greater than the liquidity event price for at least
 10 consecutive trading days immediately prior to the date of the Company's conversion
 notice.

The Company may issue up to $3,500,000 aggregate principal amount of debentures without the consent of or notice to the holders in the event a Liquidity Event is not consummated on or prior to June 6, 2020. Pursuant to the Agency Agreement, in the event a liquidity event has not occurred by June 6, 2020, the Company will issue additional Debenture Units in an aggregate principal amount equal to 10% of the aggregate number of Debenture Units initially issued to the purchaser as a penalty. In June 2020, the Company issued additional Senior Debentures totaling $1,467,000 as a result of this provision. In connection with the additional debentures issued, the Company recognized a derivative liability of $427,246 and also recorded an offsetting debt discount.

Effective September 9, 2022, the Company amended its Senior Debentures as part of a restructuring support agreement with Icanic Brands (the "Modification"). The Modification provides for 25% of the outstanding principal and accrued unpaid interest to be settled in cash with the remaining 75% settled in new convertible debentures which bear interest at 11% and convert into units at Canadian dollars ("C$") $0.10 with each unit comprised of an Icanic Brands common share and share purchase warrant exercisable into Icanic Brands common share at a price of C$0.15 per share for a period of 24 months from the date of conversion ("Conversion Option"). See "*Note 5 – Business Combinations*" for further information. The Conversion Option was determined to be a derivative under ASC 825*, Financial Instruments*, as the Conversion Option is denominated in a currency other than the Company's functional currency. See "*Note 13 – Derivative Liabilities*" for further details.

On September 8, 2022, the Company closed a non-brokered private placement of new secured debentures in the aggregate principal amount of C$1,300,000 (the "Additional Secured Debentures"). The Additional Secured Debentures have been issued pursuant to a debenture indenture entered into as of September 8, 2022 (the "Indenture"). Pursuant to the Indenture, the Company can issue up to an aggregate of CAD$4,000,000 in connection with the offering. The Additional Secured Debentures bear interest at a rate of 11.0% per annum and mature 24-months from the date of issue (September 8, 2024). The interest accrued under the Additional Secured Debentures is payable in cash upon maturity. Additional Secured Debentures have the same conversion option as Senior Debentures after the Modification. The conversion option is denominated in a functional currency (CAD) that is different as the issuer (USD) and as such needs to be assessed for derivative treatment. Upon further analysis, it was deemed the instrument had an embedded derivative and as such has been recorded as a component of debt.

In connection with the initial issuance of the Senior Debentures, share purchase warrants ("Senior Warrants") exercisable into common shares based on its issue price divided by its conversion price were also issued. The conversion price is equal to the lesser of: (A) the price that is a 25% discount to the liquidity event price and (B) the price determined based on a certain value. The exercise price is a price per common share which is 50% greater than the conversion price. The exercise price is subject to adjustment in the event of a common share reorganization, rights offering, special distribution, or capital reorganization. The warrants are exercisable upon the occurrence of a liquidity event, as defined in the Senior Warrant agreement, and the exercise period is the 24 months following the liquidity event date, provided that if a liquidity event has not occurred within five (5) years from the initial closing date of this offering, the warrants shall expire. Initially the aggregate value of these warrants included a potentially embedded feature to be treated as a derivative but was determined to be de minimis. The embedded conversion feature of the Senior Debentures has been deemed to be a derivative. See "*Note 13 – Derivative Liabilities*" for further details. Subsequent to the merger with LEEF as discussed in "*Note 5 – Business Combination*", the Senior Warrants were effectively issued as part of the share exchange terms noted in the Merger Agreement between LEEF and Icanic. As such, there were 6,616,800 warrants issued from the original 527,338 warrants of LEEF due to the agreed upon 12.55 conversion ratio. See "*Note 20 – Share Capital*" for further details on warrant activity for the years ended December 31, 2024 and 2023. As a result of the non-fixed number of shares the Additional Senior Debentures can be converted or exercised into, these features were recognized as a derivative liability (see "*Note 13 – Derivative Liabilities*").

On April 19, 2024, the Company amended its Indenture Agreement by restructuring its debentures through a conversion of the balance due to certain debenture holders and extinguishment debt. Per the amendments, the remaining balance due under the updated agreement is due September 9, 2027. The Company converted debenture balances totaling approximately $4.9 million into 22,395,948 common shares at a conversion price of approximately $0.02 per share, which also triggered the issuance of 22,395,950 warrants to purchase the Company's common stock, together valued at $7.9 million. The Company has recorded a loss on extinguishment of debt as part of this transaction.

**16.** **Lease Liabilities** 

The Company's facilities are leased under a number of leases, all of which have been classified as operating leases in accordance with ASC 842, *Leases*. Operating lease right-of-use assets and operating lease liabilities are recognized based on the present value of future minimum lease payments over the lease term at commencement date.

The Company used an incremental borrowing rate between 12% to 15%. Total future payments under lease agreements are further disclosed in Note 18 – Financial Instruments and Financial Risk Management.

The undiscounted lease liabilities are as follows:

Schedule of Undiscounted Lease Liabilities

---

| | |
|:---|:---|
| Year Ending December 31, |  |
| 2025 | $689333 |
| 2026 | 729898 |
| 2027 | 543635 |
| 2028 | 445924 |
| 2029 | 236577 |
| Thereafter | 2118968 |
| Total Future Minimum Lease Payments | $4764335 |
| Less: Interest | (2178856) |
| Present Value of Lease Liabilities | 2585479 |
| Less: Current Portion of Lease Liabilities | (302736) |
| **Lease Liabilities, Net of Current Portion** | $**2282743** |

---

**Finance Liability**

In June 2019, the Company sold and subsequently leased back equipment with third parties resulting in total gross proceeds of approximately $2,130,000, fees of $153,800 as well as warrants issued to the lessor for the lease of equipment. The Company determined that this sale did not qualify as a sale under ASC 606, "*Revenue Contracts with Customers"*, due to prohibited continuous involvement in the assets sold by the Company. Accordingly, the "sold" assets remained within equipment for the duration of the lease and a finance liability equal to the amount of the proceeds received, less fees and the fair value of the warrants issued, was recorded as a finance liability on the consolidated balance sheets. See "*Note 20 – Share Capital*" for further discussion on the warrants issued.

The finance liability was paid in full during the year ended December 31, 2023. A reconciliation of the beginning and ending balance of the finance liability for the year ended December 31, 2023, is as follows:

Schedule of Finance Leases

---

| | |
|:---|:---|
| Balance as of beginning of period | $373070 |
| &nbsp;&nbsp;&nbsp;Interest expense accrual | 105483 |
| &nbsp;&nbsp;&nbsp;Payment of principal and interest | (478553) |
| **Balance as of end of period** | **-** |
| &nbsp;&nbsp;&nbsp;Less unamortized discount | **-** |
| Finance liability, net of discount | **-** |
| &nbsp;&nbsp;&nbsp;Less current portion of lease liabilities | **-** |
| **Finance liability, net of current and discount** | $**-** |

---

The weighted average discount rate applied to the finance leases for the year ended December 31, 2023 was 33.03%.

**17.** **Contingent Consideration and Consideration Payable** 

In October 2021, the Company entered into a Membership Interest Unit Purchase Agreement with Anderson Development SB, LLC ("ADSB") to acquire 100% of the outstanding membership interest units. As consideration for the interest units, the Company agreed to an Earnout Consideration ("Earnout") in the amount equal to 200% of the investment amount in ADSB. The Earnout shall be contingent upon ADSB successfully obtaining a land use permit and a business license to conduct cannabis cultivation by February 28, 2025. As of December 31, 2021 there was a remote probability of this occurring before the Earnout Deadline. During the year ended December 31, 2022, Management determined it became highly probably ADSB would acquire the permit and license within the allotted time. This was based on a large change and turnaround in the cultivation market during the year ended December 31, 2022. As such, the Company recorded an additional contingent consideration for the Earnout that will be paid out totaling $2,400,000.

Pursuant to the terms of the merger agreement, former LEEF shareholders will also be entitled to receive the following contingent Earn-out Payments, On July 20, 2023, an amount equal to 10% of (A) the product equal to two times the TTM revenue calculated for the 12-month period immediately following closing minus (B) US$120 million; on July 20, 2024, an amount equal to 10% of (A) the product equal to two times the TTM revenue calculated for the 12-month period immediately following the date that is one year from the closing date minus (B) the US$120 million and minus (C) any amounts paid pursuant to the First Earn-Out Payment; and on July 20, 2025, an amount equal to 10% of (A) the product equal to two times the TTM revenue calculated for the 12-month period immediately following the date that is two years from the closing date minus (B) US$120 million, minus (C) any amounts paid pursuant to the First Earn-Out Payment, minus (D) any amounts paid pursuant to the Second Earn-Out Payment. The original value of the total earnout as of April 20, 2022 was $3,972,000; See "*Note 5 – Business Combination*". Each of the Earn-Out Payments will be satisfied in full through the issuance of common shares of the Company based on the 30-day volume weighted average trading price of the shares on the Canadian Securities Exchange for the period ending on the business day prior to the issuance.

As of December 31, 2023, the contingent consideration was $1,355,000, which includes $855,000 related to the Earn Out Payments and $2,400,000 related to ADSB, which are classified as long-term liabilities. During the year ended December 31, 2024, the $855,000 in contingent consideration related to the Earn Out Payments was released and common stock valued at $1,900,000 was issued, leaving a balance of $500,000 outstanding, which is classified as current.

**18.** **Financial Instruments and Financial Risk Management** 

**Financial Instruments**

Financial instruments recorded at fair value are classified using a fair value hierarchy that reflects the significance of the inputs to fair value measurements. The three levels of hierarchy are:

Level 1 – Unadjusted quoted prices in active markets for identical assets or liabilities;

Level 2 – Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly; and

Level 3 – Inputs for the asset or liability that are not based on observable market data.

Financial instruments are measured at amortized cost or at fair value. Financial instruments measured at amortized cost consist of accounts receivable, and accounts payable and accrued liabilities wherein the carrying value approximates fair value due to its short-term nature. Other financial instruments measured at amortized cost include notes payable, lease liabilities, and convertible debentures wherein the carrying value at the effective interest rate approximates fair value as the interest rate for notes payable and the interest rate used to discount the host debt contract for convertible debentures approximate a market rate for similar instruments offered to the Company.

Cash are measured at Level 1 inputs. Derivative assets and derivative liabilities are measured at fair value based on the Monte Carlo or Black-Scholes option-pricing model, which uses Level 3 inputs. Convertible debentures are measured at fair value based on the Monte Carlo and Black-Sholes simulation model, which uses Level 3 inputs.

The following table summarizes the Company's financial instruments as of December 31, 2024:

---

| | | | |
|:---|:---|:---|:---|
| **Financial assets:** | **Amortized Cost** | **Fair Value** | **Total** |
| Cash | $- | $2731979 | $2731979 |
| Accounts receivable | $2394542 | $- | $2394542 |
| **Financial liabilities:** |  |  |  |
| Accounts payable and other accrued liabilities | $6613793 | $- | $6613793 |
| Notes payable | $10584037 | $- | $10584037 |
| Derivative liabilities | $- | $9007907 | $9007907 |
| Lease liabilities | $2585479 | $- | $2585479 |

---

The following table summarizes the Company's financial instruments as of December 31, 2023:

---

| | | | |
|:---|:---|:---|:---|
| **Financial assets:** | **Amortized Cost** | **Fair Value** | **Total** |
| Cash | $- | $6414587 | $6414587 |
| Accounts receivable | $2530058 | $- | $2530058 |
| **Financial liabilities:** |  |  |  |
| Accounts payable and other accrued liabilities | $6985617 | $- | $6985617 |
| Convertible debentures | $- | $8937666 | $8937666 |
| Notes payable | $8884513 | $- | $8884513 |
| Derivative liabilities | $- | $1094316 | $1094316 |
| Lease liabilities | $2558274 | $- | $2558274 |

---

The carrying values of the Company's financial instruments carried at amortized cost approximate fair values due to their short duration.

**Financial Risk Management Objectives and Policies**

The Company is exposed to various financial risks resulting from both its operations and its investments activities. The Company's management, with the Board of Directors oversight, manages financial risks. Where material, these risks will be reviewed and monitored by the Board of Directors. The type of risk exposure and the way in which such exposure is managed is provided as follows:

**Credit risk**

Credit risk is the risk of an unexpected loss if a customer or third party to a financial instrument fails to meet its contractual obligations. Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, and receivables. The Company's cash is held through United States financial institutions and no losses have been incurred in relation to these items.

The Company's receivables are comprised of trade accounts receivable, unbilled revenues, and term note receivables. As of December 31, 2024, the Company has $1,954,201, $138,386, and $277,530, respectively, in trade accounts receivable outstanding 0-60 days, 61-90 days and over 90 days, respectively. The expected credit loss for overdue balances as of December 31, 2024, is estimated to be approximately $1.1 million based on subsequent collections, discussions with associated customers and analysis of the credit worthiness of the customer.

The carrying amount of cash, promissory note receivable, and trade and other receivables represent the maximum exposure to credit risk. As of December 31, 2024 and 2023, the net amount of maximum exposure risk was $5,126,521 and $8,944,645, respectively.

**Market and Other Risks**

Market risk is the risk of uncertainty arising primarily from possible commodity market price movements and their impact on the future economic viability of the Company's projects and ability of the Company to raise capital. These market risks are evaluated by monitoring changes in key economic indicators and market information on an on-going basis and adjusting operating and exploration budgets accordingly. As of December 31, 2024, the market and other risks are low.

**Liquidity Risk**

Liquidity risk is the risk that the Company will not be able to meet its financial obligations associated with financial liabilities. The Company manages liquidity risk through the management of its capital structure. The Company's approach to managing liquidity is to ensure that it will have sufficient liquidity to settle obligations and liabilities when due.

The Company has the following contractual obligations as of December 31, 2024:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**<1 Year** | **1 to 3 Years** | **3 to 5 Years** | **> 5 Years** | **Total** |
| Accounts payable and other accrued liabilities | $6613793 | $- | $- | $- | $6613793 |
| Related party payables | $1488866 | $- | $- | $- | $1488866 |
| Tax payable | $12836039 | $- | $- | $- | $12836039 |
| Convertible debentures | $- | $9976000 | $- | $- | $9976000 |
| Notes payable | $1337490 | $9246547 | $- | $- | $10584037 |
| Derivative liabilities | $- | $9007907 | $- | $- | $9007907 |
| Lease liabilities | $302736 | $819457 | $405096 | $1058190 | $2585479 |

---

The Company has the following contractual obligations as of December 31, 2023:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | <br>**<1 Year** | **1 to 3 Years** | **3 to 5 Years** | **> 5 Years** | **Total** |
| Accounts payable and other accrued liabilities | $6985617 | $- | $- | $– $| 6985617 |
| Related party payables | $71458 | $- | $- | $– $| 71458 |
| Tax payable | $9414086 | $- | $- | $– $| 9414086 |
| Convertible debentures | $8937666 | $- | $- | $– $| 8937666 |
| Notes payable | $821623 | $8062890 | $- | $– $| 8884513 |
| Derivative liabilities | $- | $1094316 | $- | $– $| 1094316 |
| Lease liabilities | $208624 | $1648732 | $700918 | $– $| 2558274 |

---

**Currency risk**

The Company is exposed to currency risk related to the fluctuation of foreign exchange rates and the degree of volatility of those rates. Currency risk is limited to the portion of the Company's business transactions and balances denominated in currencies other than the United States dollar.

Assuming all other variables remain constant, a fluctuation of +/- 5.0 percent in the exchange rate between the United States dollar and the Canadian dollar would impact the carrying value of the net monetary assets by approximately +/- $390,000. To date, the Company has not entered into financial derivative contracts to manage exposure to fluctuations in foreign exchange rates.

**Interest rate risk**

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Cash bear interest at market rates. The Company's financial liabilities have fixed rates of interest and therefore expose the Company to a limited interest rate fair value risk.

**Crypto Currency Risk**

We hold Bitcoin as part of our treasury assets. The value of Bitcoin is highly volatile and can be influenced by various factors, including market demand, regulatory developments, technological changes, and broader economic conditions. A significant decline in Bitcoin's market price could adversely affect our financial condition and results of operations. Additionally, the evolving regulatory landscape for digital assets may impose new compliance requirements or restrictions, potentially impacting our ability to hold or transact in Bitcoin. Security risks, such as cyberattacks or loss of private keys, could also result in the loss of our Bitcoin holdings. These factors collectively pose risks to our business and financial performance.

**19.** **Related Party Transactions** 

**Key Management Compensation**

Key management personnel are persons responsible for planning, directing and controlling activities of an entity, and include executive and non-executive persons. During the years ended December 31, 2024 and 2023, the Company recognized approximately $1,301,213, and $492,000, respectively, in compensation and stock-based compensation, respectively, provided to key management.

**Related Party Balances**

As of December 31, 2024, the Company had accrued approximately $648,000 of expenses to a farming company that is owned by a member of management and shareholder with approximately $460,000, unpaid as of period end.

On November 2, 2021, the Company acquired 100% of the outstanding membership interests of Anderson Development SB, LLC ("ADSB") from third parties and a controlling interest holding related party in exchange for approximately $1,440,000 plus up to an additional $2,400,000 of consideration (the "Contingent Consideration") (collectively, the "Consideration"). The Consideration is payable in Common Stock. The Contingent Consideration is subject to ADSB obtaining a land use permit and a business license by February 28, 2025 that permits ADSB to conduct cannabis cultivation operations. ADSB primarily holds an option to acquire certain real property in Santa Barbara County, California. The Company determined that the acquisition of ADSB membership interest was a common control transaction and have elected to record the assets acquired and liabilities assumed at the historical book value rather than fair value with no recognition of goodwill or gain or loss.

Additionally, the Company has elected to record the equity consideration and will recognize the Contingent Consideration in the consolidated financial statements only when met. During the year ended December 31, 2022, Management determined it became highly probably ADSB would acquire the permit and license within the allotted time. This was based on a large change and turnaround in the cultivation market during the year ended December 31, 2022. As such, the Company has recorded an additional contingent consideration for the Earnout that will be paid out in the form of equity and totals $2,400,000 as of December 31, 2023. This was reduced to $500,000 as of December 31, 2024. See Note 17 – Contingent Consideration and Consideration Payable for further information.

During the year ended December 31, 2024, a note payable with a principal balance of $400,000 and accrued interest of $72,000 were resold to a related party. The Company also borrowed $200,000 and $39,000 from two additional related parties during the year ended December 31, 2024.

**20.** **Share Capital** 

**Authorized capital**

The Company's authorized share capital consists of:

● an unlimited number of common shares without par value; and

● an unlimited number of preferred shares issuable in series. No preferred shares are issued as of December 31, 2024.

**Common shares**

**For the year ended December 31, 2024:**

On February 26, 2024, the Company issued 1,500,000 common shares for services, with a grant date fair value of $333,333.

During the year ended December 31, 2024, there were 12,635,058 common shares issued for cash of $2,277,759. This was reduced by warrants issued with a value of $1,230,226, which were classified as a derivative liability.

In June 2024, in connection with the conversion of convertible debentures, the Company issued 22,395,948 common shares and warrants valued at $7,083,853.

In July 2024, in connection with the Second Earn-Out Payment, the Company issued 17,491,400 common shares valued at $1,900,000.

In September 2024, in connection with the acquisition of the remaining non-controlling interest in Aya Biosciences, the Company issued 580,962 common shares valued at $3,649,489.

**For the year ended December 31, 2023:**

On January 11, 2023, the Company entered into a Membership Interest Purchase Agreement with The Leaf at 73740, LLC ("The Leaf"), a dispensary in Palm Desert, California, to acquire 100% of the outstanding interest in The Leaf. For the consideration of the interests, the Company issued 7,633,697 common shares valued at approximately $3.7 million

On January 27, 2023, the Company issued 397,308 common shares, with a fair value of $238,362 related to the conversion of certain notes payable. The loss on conversion was immaterial for the year ended December 31, 2023.

On January 27, 2023, the Company issued 5,370 common shares, with a fair value of $4,051. This issuance was pursuant to the debt conversion of the convertible debentures. The loss on conversion was immaterial for the year ended December 31, 2023.

On April 18, 2023, the Company issued 508,398 common shares, with a value of approximately $252,000, related to the working capital adjustment for the January 11, 2023 acquisition with the Leaf as described in Note 5. On August 14, 2023, an additional 218,660 common shares, with a value of approximately $110,000, related to tax refunds that the previous owners of the Leaf were entitled to per their agreement with the Company.

On April 27, 2023, the Company issued 216,874 common shares, with a fair value of approximately $162,343. This issuance was pursuant to the debt conversion of the convertible debentures. The loss on conversion was immaterial for the year ended December 31, 2023.

On July 6, 2023, there was an additional 472,153 common shares issued for cash of $100,000.

On October 24, 2023, the Company issued 1,896,667 common shares for services, with a grant date fair value of $322,433.

During the year ended December 31, 2023, the Company issued 607,493 common shares related to the exercise of restricted stock units.

**Warrants**

On May 25, 2023, in connection with the ADSB loan agreement discussed in Note 14, a total of 5,687,500 warrants to purchase the Company's stock were issued. The warrants are exercisable at a price of CAD$0.80 per share (USD $0.56) for a period of 60 months from the date of issuance. The Company recorded a derivative liability, representing a discount against the loan, of $485,659 related to the issuance of these warrants during the year ended December 31, 2023.

On November 9, 2023, in connection with the settlement of professional fees, a total of 948,333 warrants to purchase the Company's stock were issued. The warrants are exercisable at a price of CAD$0.50 per share (USD $0.35) for a period of 24 months from the date of issuance. The Company recorded a derivative liability of $34,178 related to the issuance of these warrants during the year ended December 31, 2023.

In April 2024, in connection with the settlement of certain convertible debentures, a total of 22,395,948 warrants to purchase the Company's stock were issued. The warrants are exercisable at a price of CAD$1.50 per share (USD $1.00) for a period of 24 months from the date of issuance. The Company recorded a derivative liability of $824,427 related to the issuance of these warrants during the year ended December 31, 2024.

In August 2024, in connection with the equity issuance in Q2 2024, a total of 2,742,521 warrants to purchase the Company's stock were issued. The warrants are exercisable at a price of CAD$0.60 per share (USD $0.42) for a period of 24 months from the date of issuance. The Company recorded a derivative liability of $70,824 related to the issuance of these warrants during the year ended December 31, 2024.

In December 2024, in connection with the equity issuance in Q4 2024, a total of 10,815,100 warrants to purchase the Company's stock were issued. The warrants are exercisable at a price of CAD$0.40 per share (USD $0.29) for a period of 24 months from the date of issuance. The Company recorded a derivative liability of $1,159,402 related to the issuance of these warrants during the year ended December 31, 2024.

The following table summarizes the warrants outstanding that remain outstanding as December 31, 2024:

Schedule of Warrants Outstanding

---

| | | |
|:---|:---|:---|
| **Expiration Date** | **Outstanding** | **Exercise Price** |
| January 25, 2025 | 5370 | $1.10 |
| April 14, 2025 | 216874 | $1.10 |
| May 31, 2025 | 236076 | $0.31 |
| November 9, 2025 | 94834 | $0.37 |
| April 19, 2026 | 22395950 | $1.10 |
| August 19, 2026 | 2742519 | $0.44 |
| December 9, 2026 | 8473500 | $0.29 |
| December 15, 2026 | 2341600 | $0.29 |
| May 24, 2028 | 5687500 | $0.59 |
| **Total warrants outstanding** | **42194223** |  |

---

**2019 Stock incentive plan**

The omnibus 2019 stock incentive plan permits the Board of Directors of the Company to grant options to employees and non-employees to acquire common shares of the Company at fair market value on the date of approval by the Board of Directors. Vesting is determined on an award-by-award basis.

There were a total of 6,180,833 and 0 options granted during the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, there were 13,815,048 and 13,479,874, respectively, options outstanding. For the years ended December 31, 2024 and 2023, there was $428,108 and $779,085, respectively, of share-based compensation expense related to the 2019 stock incentive plan.

Stock option activity is summarized as follows:

Schedule of Stock Option Activity

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of Stock Options** | **Weighted-Average Exercise Price** | **Weighted-Average Remaining Contractual Life** | **Aggregate Intrinsic Value** |
| **Balance as of December 31, 2023** | **13479874** | $**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.72** | $**4.46** | $**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -** |
| &nbsp;&nbsp;&nbsp;Granted | 6180833 | $0.16 | $3.86 | $- |
| &nbsp;&nbsp;&nbsp;Forfeited | (5845659) | $0.96 | $4.68 | $- |
| **Balance as of December 31, 2024** | **13815048** | $**0.39** | $**4.21** | $**-** |

---

The Company used the Black-Scholes Option Pricing model to estimate the fair value of the options granted during the years ended December 31, 2024 and 2023, using the following range of assumptions:

Schedule of Black-Scholes Option Pricing Model Assumptions

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Risk-free annual interest rate | 4.11% - 5.23 | 2.74% |
| Expected stock price volatility | 156.11% - 239.57 | 101.48% |
| Expected life of stock options (years) | 1.5 – 6.5 | 5.00 |
| Expected annual dividend yield | 0.00% | 0.00% |
| Expected forfeiture rate | 0.00% | 0.00% |

---

The following table summarizes the stock options that remain outstanding as of December 31, 2024 and 2023:

Schedule of Options Remain Outstanding

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Exercise Price** | **Date** | **Outstanding** | **Exercisable** | **Vesting Condition** |
| $0.65 | February 2029 | 12548 | 12548 | One year vesting |
| $0.65 | February 2029 | 76009 | 76009 | Immediate vesting |
| $0.65 | February 2029 | 3531148 | 3531148 | Three year vesting |
| $0.65 | February 2029 | 6274 | 6274 | Immediate vesting |
| $0.65 | July 2029 | 2824918 | 2824918 | Immediate vesting |
| $0.65 | February 2029 | 264836 | 264836 | Immediate vesting |
| $0.01 | October 2030 | 887112 | 887112 | One year vesting |
| $1.05 | October 2031 | 31369 | 31369 | Immediate vesting |
| $0.15 | July 2034 | 66667 | 66667 | Immediate vesting |
| $0.15 | July 2034 | 66667 | 27778 | One year vesting |
| $0.15 | July 2034 | 200000 | 27778 | Three year vesting |
| $0.25 | October 2026 | 300000 | 16667 | One year vesting |
| $0.15 | November 2029 | 3290000 | 274167 | One year vesting |
| $0.15 | November 2029 | 1957500 | 163125 | One year vesting |
| $0.25 | November 2029 | 300000 | 25000 | One year vesting |
|  |  | 13815048 | 8235396 |  |

---

**Restricted Share Unit Plan**

In December 2022, the Company formally adopted the Restricted Share Unit Plan ("RSU Plan"). The RSU Plan permits the Board of Directors of the Company to grant Restricted Share Units ("RSU's") to employees and non-employees to acquire common shares of the Company at fair market value on the date of approval by the Board of Directors. Vesting is determined on an award-by-award basis. As of December 31, 2024 and 2023, 6,939,253 and 33,333 units were granted, 1,330,852 and 855,271 units were vested, 0 and 65,202 were forfeited, and 0 and 607,493 were exercised, respectively. For the years ended December 31, 2024 and 2023, the Company recognized share-based compensation expense of $539,772 and $143,888, respectively, for units that were vested. The average grant-date fair value of the RSU's during the year ended December 31, 2024 was $0.14.

Restricted share unit activity is summarized as follows:

Schedule of Restricted Share Unit Activity

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Number of Restricted<br> Share Units** | **Weighted-Average Exercise Price** | **Weighted-Average Remaining Contractual Life** | **Aggregate<br> Intrinsic Value** |
| **Balance as of December 31, 2023** | **253333** | $**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 0.71** | $**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.46** | $**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -** |
| &nbsp;&nbsp;&nbsp;Granted | 6939253 | $0.15 | $4.79 | $- |
| &nbsp;&nbsp;&nbsp;Forfeited | - | $- | $- | $- |
| **Balance as of December 31, 2024** | **7192586** | $**0.17** | $**4.73** | $**-** |

---

The Company used the Black-Scholes Option Pricing model to estimate the fair value of the restricted share units granted during the years ended December 31, 2024, using the following range of assumptions:

**Schedule of Black-Scholes Option Pricing Model Assumptions**

---

| | | |
|:---|:---|:---|
|  | **2024** | **2023** |
| Expected stock price volatility | 175.40% - 190.53 | 101.48% |
| Risk-free annual interest rate | 4.10% - 4.20 | 2.74% |
| Expected life of stock options (years) | 2.5 – 3.0 | 5.00 |
| Expected annual dividend yield | 0.00% | 0.00% |
| Expected forfeiture rate | 0.00% | 0.00% |

---

**Reserves**

Reserves includes accumulated foreign currency translation adjustments and the accumulated fair value of share-based compensation and warrants transferred from share-based payment reserve and warrant reserve upon cancellation or expiry of the share options and warrants.

**21.** **Non-controlling interest** 

Non-controlling interest represents the net assets of the subsidiaries the Company does not directly own. The net assets of the non-controlling interest are represented by equity holders outside of the Company. As of December 31, 2024 and December 31, 2023, the Company held a 100.00% and 55.65% interest, respectively, in an investment subsidiary Aya Biosciences, Inc. During the year ended December 31, 2024, the Company acquired the remaining interest in exchange for $2 million worth of shares of the Company's common stock at the greater of the 20-day volume weighted average price and $0.07 per share, which amounted to 580,962 shares of common stock. This entity is included in the financial statements with a resulting non-controlling interest reflected therein. Non-controlling interests are included as a component of shareholders' equity.

A reconciliation of the beginning and ending balances for non-controlling interests for the year ended December 31, 2024, is as follows:

---

| | |
|:---|:---|
|  | **2024** |
| Balance as of beginning of period | $3649489 |
| &nbsp;&nbsp;&nbsp;Acquisition of remaining interest in Aya Biosciences | (3649489) |
| &nbsp;&nbsp;&nbsp;Share of loss | - |
| Balance as of end of period | $- |

---

As of December 31, 2024, there were no remaining non-controlling interests outstanding.

**22.** **Commitments and contingencies** 

**Contingencies**

The Company's operations are subject to a variety of local and state regulations. Failure to comply with one or more of these regulations could result in fines, restrictions on its operations, or losses of permits that could result in the Company ceasing operations. While management of the Company believes that the Company is in compliance with applicable local and state regulations as of December 31, 2024 and 2023, marijuana regulations continue to evolve and are subject to differing interpretations. In addition, the use, sale, and possession of cannabis in the United States, despite state laws, is illegal under federal law. However, individual states have enacted legislation permitting exemptions for various uses, mainly for medical and industrial use but also including recreational use. As a result of the differing state and federal laws, the Company may be subject to regulatory fines, penalties or restrictions in the future.

**Claims and Litigation**

From time to time, the Company may be involved in litigation relating to claims arising out of operations in the normal course of business. As of December 31, 2024 and 2023, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of the Company's operations. As of December 31, 2024 and 2023, there are also no proceedings in which any of the Company's directors, officers or affiliates is an adverse party to the Company or has a material interest adverse to the Company's interest.

**23.** **Segmented Information** 

Operations by reportable segment for the year ending December 31, 2024 are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Year Ended December 31, 2024 | Year Ended December 31, 2024 | Year Ended December 31, 2024 | Year Ended December 31, 2024 |
|  | Wholesale Concentrates | Retail | Corporate & <br>Other | Total |
| Net revenue | $24586764 | $3908683 | $- | $28495447 |
| Cost of sales | 17544172 | 2011107 | - | 19555279 |
| &nbsp;&nbsp;&nbsp;Gross profit | 7042592 | 1897576 |  | 8940168 |
| Operating expenses |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Advertising and promotion | 176777 | 236856 | 27233 | 440866 |
| &nbsp;&nbsp;&nbsp;Depreciation and amortization | 1731522 | 117032 | 52265 | 1900819 |
| &nbsp;&nbsp;&nbsp;Wages and salaries | 2041058 | 847036 | 2990555 | 5878649 |
| &nbsp;&nbsp;&nbsp;Office and general expenses | 1706632 | 541955 | 734900 | 2983487 |
| &nbsp;&nbsp;&nbsp;Research and development expenses | 18739 |  | 244 | 18983 |
| &nbsp;&nbsp;&nbsp;Legal and professional fees | 307950 | 54066 | 1011899 | 1373915 |
| &nbsp;&nbsp;&nbsp;Insurance expenses | 2197 | 45989 | 386952 | 435138 |
| &nbsp;&nbsp;&nbsp;Excise and other taxes | 55450 |  |  | 55450 |
| &nbsp;&nbsp;&nbsp;Lease expenses | 60124 | (17000) | 672994 | 716118 |
| &nbsp;&nbsp;&nbsp;Loss on impairment of goodwill, intangible and long-lived assets |  | 2414485 | 246899 | 2661384 |
| &nbsp;&nbsp;&nbsp;Other gains (losses) |  | (6415) | 7812 | 1397 |
| &nbsp;&nbsp;&nbsp;Travel and business development | 80175 | 18401 | 361231 | 459807 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total operating expenses | 6180624 | 4252405 | 6492984 | 16926013 |
| &nbsp;&nbsp;&nbsp;Loss from operations | 861968 | (2354829) | (6492984) | (7985845) |
| Other expense |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Interest expense | 1257809 | 201376 | 3696103 | 5155288 |
| &nbsp;&nbsp;&nbsp;Loss (gain) on extinguishment of debt |  |  | 2935029 | 2935029 |
| &nbsp;&nbsp;&nbsp;Change in fair value of contingent consideration |  |  | (855000) | (855000) |
| &nbsp;&nbsp;&nbsp;Change in fair value derivative liability | 12727 |  | 6100758 | 6113485 |
| &nbsp;&nbsp;&nbsp;Other expense (income) | (8902) | - | (11474) | (20376) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total other expense | 1261634 | 201376 | 11865416 | 13328426 |
| Loss before provision for income taxes | (399666) | (2556205) | (18358400) | (21314271) |
| &nbsp;&nbsp;&nbsp;Provision for income taxes | 333 | - | 3306920 | 3307243 |
| Net loss and comprehensive loss | (399989) | (2556205) | (21665320) | (24621514) |
| Foreign currency translation |  |  | 7314 | 7314 |
| Net loss and comprehensive loss attributable to non-controlling interest | - | - | - | - |
| Net loss and comprehensive loss attributable to shareholders of Leef Brands, Inc. | $(399989) | $(2556205) | $(21672634) | $(24628828) |

---

**24.** **Loss Per Share** 

The following is a reconciliation for the calculation of net loss attributable to the Company and the basic and diluted loss per share for the year ended December 31, 2024 and 2023:

---

| | | |
|:---|:---|:---|
|  | **Years Ended** | **Years Ended** |
|  | **December 31, 2024** | **December 31, 2023** |
| Net Income (Loss) Attributable to the Company | $(24628828) | $(34651435) |
| Weighted-Average Shares Outstanding – Basic and Diluted | 142595527 | 115964196 |
| **Loss Per Share Attributable to the Company – Basic and Diluted** | $**(0.17)** | $**(0.30)** |

---

Net loss attributable to the Company, as reported, is adjusted for dividends and various other adjustments as defined in ASC 260, *Earnings Per Share*.

After adjustments as defined in ASC 360, if the Company is in a net loss position, diluted loss per share is the same as basic loss per share when the issuance of shares on the exercise of convertible debentures, warrants, share options are anti-dilutive. After adjustments, as defined in ASC 360, if the Company is in a net income position, diluted earnings per share includes options, warrants, convertible debt and contingently issuable shares that are determined to be dilutive using the treasury stock method for all equity instruments issuable in equity units and the "if converted" method for the Company's convertible debt.

**25.** **Income Taxes** 

****

A reconciliation of current income tax expense and the amount computed from applying the federal statutory income tax rate of 21% to the loss before provision from income taxes for the years ended:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2023** |
| Expected income tax recovery (Domestic) | $(5026158) | $(6070909) |
| Expected income tax recovery (Foreign) | (11888) | (245082) |
| State taxes (net of federal tax benefits) | (92997) | (35360) |
| Change in valuation allowance (Domestic) | 1088687 | (157141) |
| Change in valuation allowance (Foreign) | 11888 | 245085 |
| Interest and penalties | 829000 | 1179000 |
| Impairment of goodwill | 329172 | 194670 |
| Share-based compensation | 579384 | 291506 |
| Change in fair value | 1254877 | (278163) |
| Permanent non-deductible IRS Section 280E | 4053976 | 8504397 |
| Other | 419697 | 176939 |
| **Current income tax expense** | $**3435638** | $**3804942** |

---

The provision for income taxes for the years ended:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2023** |
| Current income tax expense | $3435638 | $3804942 |
| Deferred income tax recovery | (128395) | (8764120) |
| **Income tax provision** | $**3307243** | $**(4959178)** |

---

The unrecognized temporary differences of the Company that give rise to significant portions of the Company's deferred tax assets and liabilities are set forth below:

---

| | | |
|:---|:---|:---|
|  | **December 31, 2024** | **December 31, 2023** |
| Deferred tax assets: |  |  |
| &nbsp;&nbsp;&nbsp;Non-capital loss carry forwards | $9505595 | $8451121 |
| &nbsp;&nbsp;&nbsp;Accrued expenses | 65529 | 59018 |
| &nbsp;&nbsp;&nbsp;Reserves | 101176 | 87251 |
| &nbsp;&nbsp;&nbsp;Other | 98413 | 100105 |
| &nbsp;&nbsp;&nbsp;Valuation allowance | (9770713) | (8697495) |
| Total deferred tax assets | - | - |
| Deferred tax liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Fixed assets and intangibles | (883181) | (1011576) |
| **Net deferred tax liability** | $**(883181)** | $**(1011576)** |

---

The net change in the deferred balance for December 31, 2024 was $128,494. In assessing the realizability of deferred tax assets and liabilities, management considers whether it is more likely than not that some portion or all will not be realized. The Company is recognizing a net deferred tax liability balance in the current year.

The difference between the statutory tax rate of 21.00% and the effective tax rate of 30.58% is attributable to certain permanent differences. These permanent differences include adjustments for meals and entertainment, change in fair value of contingent consideration, share-based compensation expense, U.S. IRC Section 280E non-deductible expenses, change in fair value of derivative liabilities, loss on impairment of long-lived assets and intangibles, acquisition related expenses, and interest and penalties.

As the Company operates in the cannabis industry, it is subject to the limits of U.S. IRC Section 280E under which the Company is only allowed to deduct expenses directly related to sales of product. This results in permanent differences between ordinary and necessary business expenses deemed non-allowable under U.S. IRC Section 280E.

Federal and California tax laws impose significant restrictions on the utilization of net operating loss carryforwards in the event of a change in ownership of the Company, as defined by Internal Revenue Code Section 382 (Section 382). The Company has not completed a formal analysis of a change in ownership, as defined by Section 382, but believe any such change would be immaterial for the year ended December 31, 2024. The Company has net operating loss carryforwards for federal, California, and foreign income tax purposes of approximately $10,547,000, $51,423,000, and $23,774,000, respectively, as of December 31, 2024. The federal net operating loss carryforwards, if not utilized, will carryover indefinitely. The state net operating loss carryforwards, if not utilized, will expire beginning in 2042. The foreign non-capital loss carryforwards of Canada, if not utilized, will expire beginning in 2044.

As of the date these financial statements were available to be issued, the Company has not yet filed its federal income tax return for the 2021, 2022, 2023, and 2024 calendar years. The Company has computed interest and penalties of approximately $829,000 and $1,179,000, respectively, for the years ended December 31, 2024 and 2023. This is included in the total current income tax payable of $12,836,039 and $9,414,086, respectively, as of December 31, 2024 and 2023. The Company has recorded the current income tax payable as a liability on the balance sheets as of December 31, 2024 and 2023. The computed interest and penalty amounts are also included within current income tax provision on the statement of operations and comprehensive income (loss) in the accompanying financial statements for the years ended December 31, 2024 and 2023. The company has full intention on becoming compliant with the latest filings during the second quarter of the 2025 calendar year. Any losses that will contribute to an additional net operating loss carryforward for the 2021, 2022, and 2023 tax years have not been included in the above. The timing for expiration of these losses will not commence until the 2021 federal return has been filed.

**26.** **Subsequent Events** 

The Company evaluates events that have occurred after the balance sheet date of December 31, 2024, through the date which the financial statements were available to be issued.

On January 13<sup>th</sup>, the Company issued 1,858,031 common shares at an average price of $0.6660 CAD per share to the former shareholders of The Leaf at 73740 LLC. per the Membership Interest Purchase Agreement dated January 11, 2023.

On February 18<sup>th</sup>, the Company announced it had signed a binding letter of intent to acquire a Type 1 processing licensing in New York State.

On March 12<sup>th</sup>, the Company issued 600,000 common shares for services, with a grant date fair value of $100,000.

**Leef Brands, Inc.**

**____________ shares of Common Stock**

**PROSPECTUS**

The date of this prospectus is August 19, 2025

**PART II**

**INFORMATION NOT REQUIRED IN PROSPECTUS**

**Item 13. Other Expenses of Issuance and Distribution**

The following table sets forth all expenses to be paid by us in connection with this offering. All amounts shown are estimates except for the SEC registration fee.

---

| | |
|:---|:---|
| SEC Registration Fee | $318.29 |
| Accounting Fees and Expenses | $56500 |
| Legal Fees and Expenses | $75000 |
| Printing Costs | $-0- |
| Miscellaneous | $-0- |
| &nbsp;&nbsp;&nbsp;Total | $131819.29 |

---

**Item 14. Indemnification of Directors and Officers**

Under the Business Corporation's Act (British Columbia), or BCBCA, subject to certain limitations set forth in section 163 of the BCBCA, a company may (a) indemnify: an eligible party against all eligible penalties 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.

For the purposes of this section:

"**eligible party**" means (i) a current or former director or officer of that company; (ii) a current or former director or officer of another corporation if, at the time such individual held such office, the corporation was an affiliate of the company, or if such individual held such office at the company's request; or (iii) an individual who, at the request of the company, held, or holds, an equivalent position to that of, a director or officer of a partnership, trust, joint venture or other unincorporated entity;

"**eligible penalty**" means a judgment, penalty or fine awarded or imposed in, or an amount paid in settlement of, an eligible proceeding; and

"**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.

A company must not indemnify or pay the expense of an eligible party if: (i) 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 such company or the other entity, as the case may be; or (ii) in the case of an eligible proceeding other than a civil proceeding, the eligible party did not have reasonable grounds for believing that the eligible party's conduct was lawful. A company cannot indemnify an eligible party if it is prohibited from doing so under its Articles, by the BCBCA or by other applicable law.

A 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 that proceeding only if the eligible party has provided the company with an undertaking that, if it is ultimately determined that the payment of expenses was prohibited by the BCBCA, the eligible party will repay any amounts advanced. Subject to the aforementioned prohibitions on indemnification, a 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 has not been reimbursed for such expenses, and was wholly successful, on the merits or otherwise, in the outcome of such proceeding or was substantially successful on the merits in the outcome of such proceeding.

On application from an eligible party, a court may make any order the court considers appropriate in respect of an eligible proceeding, including the indemnification of an eligible party against any liability incurred by the eligible party in respect of an eligible proceeding, the payment of some or all of the expenses incurred by an eligible party in respect of an eligible proceeding and the enforcement of an indemnification agreement. As permitted by the BCBCA, under Section 21.2 of the Articles, we are required to indemnify our directors and former directors (and such individual's respective heirs and legal representatives) and we will indemnify any such person to the extent permitted by the BCBCA.

We maintain insurance policies relating to certain liabilities that our directors and officers may incur in such capacity.

Insofar as indemnification for liabilities under the Securities Act may be permitted to officers, directors or persons controlling the Company pursuant to the foregoing provisions, the Company has been informed that is it is the opinion of the SEC that such indemnification is against public policy as expressed in such Securities Act and is, therefore, unenforceable.

**Item 15. Recent Sales of Unregistered Securities**

None.

**Item 16. Exhibits and Financial Statement Schedules**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Exhibits.**

See the Exhibit Index immediately following the Signature Pages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Financial Statement Schedules.**

All schedules have been omitted because they are either inapplicable or the required information has been given in the financial statements or notes thereto.

**Item 17. Undertakings**

The undersigned registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the "Calculation of Registration fee" table in the effective registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement.

(2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4) The undersigned Registrant hereby undertakes that for the purpose of determining liability under the Securities Act to any purchaser, if the Registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. *Provided, however,* that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(5) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

(6) The undersigned registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to section 13(a) or section 15(d) of the Securities Exchange Act of 1934 (and, where applicable, each filing of an employee benefit plan's annual report pursuant to section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(7) The undersigned hereby further undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

**SIGNATURES**

Pursuant to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, on this 26th day of August, 2025.

---

| | |
|:---|:---|
| **Leef Brands, Inc.** | **Leef Brands, Inc.** |
| By: | */s/ Micah Anderson* |
|  | Micah Anderson, |
|  | Chief Executive Officer |

---

**POWERS OF ATTORNEY**

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below severally constitutes and appoints Micah Anderson 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 the registration statement on Form S-1 of Leef Brands, Inc. and any or all amendments thereto (including post-effective amendments), and any new registration statement with respect to the offering contemplated thereby filed pursuant to Rule 462(b) under the Securities Act, and all amendments thereto (including post-effective amendments), and to file the same, with all 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 or necessary to be done in and about the premises, 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 indicated on August 26, 2025.

---

| | | |
|:---|:---|:---|
| **Signature** | **Title** | **Date** |
| */s/ Micah Anderson* | Chief Executive Officer, Chairman of the Board | August 26, 2025 |
| Micah Anderson | (principal executive officer) |  |
| */s/ Kevin Wilson* | Chief Financial Officer, Director | August 26, 2025 |
| Kevin Wilson | (principal financial and accounting officer) |  |
| */s/ Emily Heitman* | Chief Revenue Officer, Director | August 26, 2025 |
| Emily Heitman |  |  |
| */s/ Andrew Glashow* | Director | August 26, 2025 |
| Andrew Glashow |  |  |

---

**EXHIBIT INDEX**

---

| | |
|:---|:---|
| **Exhibit** **No.** | **Description** |
| 3.1 | [Articles of Incorporation of the Registrant.](ex3-1.htm) |
| 3.2 | [Bylaws of the Registrant. (included in Exhibit 3.1 hereto).](ex3-1.htm) |
| 4.1 | [Specimen common stock certificate of the Registrant.](ex4-1.htm) |
| 5.1 | [Opinion of Bennett Jones LLP.](ex5-1.htm) |
| 10.2 | [Employment Agreement, dated April 20, 2022, by and between Micah Anderson and Leef Brands, Inc.](ex10-2.htm) |
| 10.3 | [Employment Agreement, dated March 6, 2025, by and between Kevin Wilson and Leef Brands, Inc.](ex10-3.htm) |
| 10.4 | [Share Exchange Agreement, dated April 20, 2022, by and among Leef Holdings, Inc. and Icanic Brands, Inc.](ex10-4.htm) |
| 21.1 | [Subsidiaries of the Registrant.](ex21-1.htm) |
| 23.1 | [Consent of M&K CPAS, independent registered public accounting firm for Leef Brands, Inc.](ex23-1.htm) |
| 23.2 | [Consent of Bennett Jones LLP. (included in Exhibit 5.1 hereto).](ex5-1.htm) |
| 24.1 | [Power of Attorney (contained on the signature page to this registration statement).](#poa_001) |
| 101.INS | Inline XBRL Instance Document |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 107 | [Filing Fee Table](ex107.htm) |

---

(#) A contract, compensatory plan or arrangement to which a director or executive officer is a party or in which one or more directors or executive officers are eligible to participate.

## Exhibit 3.1

**Exhibit 3.1**

DUPLICATE

---

| | |
|:---|:---|
| ![](ex3-1_001.jpg) | Number: BC0920360 |

---

**CERTIFICATE**

**OF**

**INCORPORATION**

*BUSINESS CORPORATIONS ACT*

 

I Hereby Certify that CNRP MINING INC. was incorporated under the Business Corporations Act on September 15, 2011 at 11:53 AM Pacific Time.

---

| | |
|:---|:---|
| ![](ex3-1_003.jpg) | *Issued under my hand at Victoria, British Columbia*<br> *On September 15, 2011*<br>**RON TOWNSHEND**<br>*Registrar of Companies*<br> Province of British Columbia<br> Canada<br>|

---

Date and Time: May 7, 2024 04:28 PM Pacific Time

---

| | | |
|:---|:---|:---|
| ![](ex3-1_004.jpg) | Mailing Address:<br> PO Box 9431 Stn Prov Govt<br> Victoria BC V8W 9V3<br> www.corporateonline.gov.bc.ca | Location:<br> 2nd Floor - 940 Blanshard Street <br> Victoria BC <br> 1 877 526-1526 |

---

**Notice of Articles**

*BUSINESS CORPORATIONS ACT*

 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> *This Notice of Articles was issued by the Registrar on: October 6, 2023 12:01 AM Pacific Time*<br>*Incorporation Number:* **BC0920360**<br>*Recognition Date and Time: Incorporated on September 15, 2011 11:53 AM Pacific Time*<br>

**NOTICE OF ARTICLES**

**Name of Company:**

LEEF BRANDS INC.

---

| | |
|:---|:---|
| **REGISTERED OFFICE INFORMATION**<br>**Mailing Address:**<br>SUITE 2500 PARK PLACE<br> 666 BURRARD STREET<br> VANCOUVER BC V6C 2X8<br> CANADA | <br>**Delivery Address:**<br>SUITE 2500 PARK PLACE<br> 666 BURRARD STREET<br> VANCOUVER BC V6C 2X8<br> CANADA<br>|

---

---

| | |
|:---|:---|
| **RECORDS OFFICE INFORMATION**<br>**Mailing Address:**<br>SUITE 2500 PARK PLACE<br> 666 BURRARD STREET<br> VANCOUVER BC V6C 2X8<br> CANADA<br>| <br>**Delivery Address:**<br>SUITE 2500 PARK PLACE<br> 666 BURRARD STREET<br> VANCOUVER BC V6C 2X8<br> CANADA<br>|

---

BC0920360 Page: 1 of 2

---

| | |
|:---|:---|
| **DIRECTOR INFORMATION**<br>**Last Name, First Name, Middle Name:**<br>Glashow, Andrew<br>**Mailing Address:**<br>115 KANE AVENUE<br>MIDDLETOWN RI 02842<br> UNITED STATES<br>| <br>**Delivery Address:**<br>115 KANE AVENUE<br>MIDDLETOWN RI 02842<br> UNITED STATES<br>|

---

---

| | |
|:---|:---|
| **Last Name, First Name, Middle Name:**<br>Slome, Ben<br>**Mailing Address:**<br>389 W POND LILY RD.<br> ELIZAVILLE NY 12523<br> UNITED STATES<br>| <br>**Delivery Address:**<br>389 W POND LILY RD.<br>ELIZAVILLE NY 12523<br>UNITED STATES |

---

---

| | |
|:---|:---|
| **Last Name, First Name, Middle Name:**<br>Heitman, Emily<br>**Mailing Address:**<br>175 NORTH LENORE AVE.<br> WILLITS CA 95490<br>UNITED STATES<br>| <br>**Delivery Address:**<br>175 NORTH LENORE AVE.<br>WILLITS CA 95490<br>UNITED STATES |

---

---

| | |
|:---|:---|
| **Last Name, First Name, Middle Name:**<br>Anderson, Micah<br>**Mailing Address:**<br>175 NORTH LENORE AVE.<br>WILLITS CA 95490<br>UNITED STATES | <br>**Delivery Address:**<br>175 NORTH LENORE AVE.<br>WILLITS CA 95490<br>UNITED STATES |

---

**RESOLUTION DATES:**

Date(s) of Resolution(s) or Court Order(s) attaching or altering Special Rights and Restrictions attached to a class or a series of shares:

February 18, 2013

**AUTHORIZED SHARE STRUCTURE**

1. No Maximum Common Shares Without Par Value <br>Without Special Rights or Restrictions attached

2. No Maximum Preferred Shares Without Par Value <br>With Special Rights or Restrictions attached

BC0920360 Page: 2 of 2

Existing Articles of the Company was cancelled in its entirety and New Articles of the Company were adopted by the shareholder of the Company by Annual General and Special Meeting of the Shareholder on June 21, 2022. Received for deposit at the Company's records office on June 30, 2022 @ 7:17PM PST.

Number: <u>**BC0920360**</u>

***BUSINESS CORPORATIONS ACT***

**(British Columbia)**

**ARTICLES**

**of**

**LEEF BRANDS INC.**

**ICANIC BRANDS COMPANY INC.**

**(the "Company")**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| **PART 1** | **INTERPRETATION** | **1** |
| **PART 2** | **SHARES AND SHARE CERTIFICATES** | **2** |
| **PART 3** | **ISSUE OF SHARES** | **4** |
| **PART 4** | **SHARE REGISTERS** | **5** |
| **PART 5** | **SHARE TRANSFERS** | **5** |
| **PART 6** | **TRANSMISSION OF SHARES** | **6** |
| **PART 7** | **PURCHASE, REDEEM OR OTHERWISE ACQUIRE SHARES** | **7** |
| **PART 8** | **BORROWING POWERS** | **8** |
| **PART 9** | **ALTERATIONS** | **8** |
| **PART 10** | **MEETINGS OF SHAREHOLDERS** | **10** |
| **PART 11** | **PROCEEDINGS AT MEETINGS OF SHAREHOLDERS** | **12** |
| **PART 12** | **VOTES OF SHAREHOLDERS** | **16** |
| **PART 13** | **DIRECTORS** | **20** |
| **PART 14** | **ELECTION AND REMOVAL OF DIRECTORS** | **22** |
| **PART 15** | **ALTERNATE DIRECTORS** | 2**9** |
| **PART 16** | **POWERS AND DUTIES OF DIRECTORS** | **31** |
| **PART 17** | **INTERESTS OF DIRECTORS AND OFFICERS** | **32** |
| **PART 18** | **PROCEEDINGS OF DIRECTORS** | **33** |
| **PART 19** | **EXECUTIVE AND OTHER COMMITTEES** | **36** |
| **PART 20** | **OFFICERS** | **37** |
| **PART 21** | **INDEMNIFICATION.** | **38** |
| **PART 22** | **DIVIDENDS** | **40** |
| **PART 23** | **ACCOUNTING RECORDS AND AUDITORS** | **42** |
| **PART 24** | **NOTICES** | **42** |
| **PART 25** | **SEAL** | **44** |
| **PART 26** | **SPECIAL RIGHTS AND RESTRICTIONS COMMON AND PREFERRED SHARES.** | **45** |

---

Number: <u>**BC0920360**</u>

***BUSINESS CORPORATIONS ACT***

**(British Columbia)**

**ARTICLES**

**of**

**LEEF BRANDS INC.**

**ICANIC BRANDS COMPANY INC.**

(the "Company")

**PART 1**

**INTERPRETATION**

**Definitions**

1.1 In these Articles, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "**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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**board of directors**", "**directors**" and "**board**" mean the directors or sole director of the Company for the time being;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**legal personal representative**" means the personal or other legal representative of the shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**registered address**" of a shareholder means the shareholder's address as recorded in the central securities register;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "**seal**" means the seal of the Company, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "**share**" means a share in the share structure of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "**special majority**" means the majority of votes described in §11.2 which is required to pass a special resolution.

**Act and Interpretation Act Definitions Applicable**

1.2 The definitions in the Act and the definitions and rules of construction in the Interpretation Act, with the necessary changes, so far as applicable, and except as the context requires otherwise, apply to these Articles as if they were an enactment. If there is a conflict OR inconsistency between a definition in the Act and a definition or rule in the Interpretation Act relating to a term used in these Articles, the definition in the Act will prevail. If there is a conflict or inconsistency between these Articles and the Act, the Act will prevail.

**PART 2**

**SHARES AND SHARE CERTIFICATES**

**Authorized Share Structure**

2.1 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.

**Form of Share Certificate**

2.2 Each share certificate issued by the Company must comply with, and be signed as required by, the Act.

**Shareholder Entitled to Certificate, Acknowledgment or Written Notice**

2.3 Unless the shares of which the shareholder is the registered owner are uncertificated shares, each shareholder is entitled, 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 and delivery of a share certificate for a share to one of several joint shareholders or to one of the shareholders' duly authorized agents will be sufficient delivery to all. If a shareholder is the registered owner of uncertificated shares, the Company must send to a holder of an uncertificated share a written notice containing the information required by the Act within a reasonable time after the issue or transfer of such share.

**Delivery by Mail**

2.4 Any share certificate or 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.

**Replacement of Worn Out or Defaced Certificate or Acknowledgement**

2.5 If a share certificate or a non-transferable written acknowledgment of the shareholder's right to obtain a share certificate is worn out or defaced, the Company must, on production of the share certificate or acknowledgment, as the case may be, and on such other terms, if any, as are deemed fit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) cancel the share certificate or acknowledgment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) issue a replacement share certificate or acknowledgment.

**Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgment**

2.6 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, if the requirements of the Act are satisfied, as the case may be, if the directors receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) proof satisfactory to it of the loss, theft or destruction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) any indemnity the directors consider adequate.

**Splitting Share Certificates**

2.7 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.

**Certificate Fee**

2.8 There must be paid to the Company, in relation to the issue of any share certificate under §2.5, §2.6 or §2.7, the amount, if any, not exceeding the amount prescribed under the Act, determined by the directors.

**Recognition of Trusts**

2.9 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.

**PART 3**

**ISSUE OF SHARES**

**Directors Authorized**

3.1 Subject to the Act and the rights, if any, of the holders of issued shares of the Company, the Company may allot, issue, 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 consideration (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.

**Commissions and Discounts**

3.2 The Company may at any time pay a reasonable commission or allow a reasonable discount to any person in consideration of that person's purchase or agreement to purchase shares of the Company from the Company or any other person's procurement or agreement to procure purchasers for shares of the Company.

**Brokerage**

3.3 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.

**Conditions of Issue**

3.4 Except as provided for by the Act, no share may be issued until it is fully paid. A share is fully paid when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) consideration is provided to the Company for the issue of the share by one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) past services performed for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) money; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the value of the consideration received by the Company equals or exceeds the issue price set for the share under §3.1.

**Share Purchase Warrants and Rights**

**PART 4**

**SHARE REGISTERS**

**Central Securities Register**

4.1 As required by and subject to the Act, the Company must maintain in British Columbia a central securities register and may appoint an agent to maintain such register. The directors may appoint one or more agents, including the agent appointed to keep the central securities register, as transfer agent for shares or any class or series of shares and the same or another agent as registrar for shares or such class or series of 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.

**PART 5**

**SHARE TRANSFERS**

**Registering Transfers**

5.1 A transfer of a share must not be registered unless the Company or the transfer agent or registrar for the class or series of shares to be transferred has received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) except as exempted by the Act, a written instrument of transfer in respect of the share has been received by the Company (which may be a separate document or endorsed on the share certificate for the shares transferred) made by the shareholder or other appropriate person or by an agent who has actual authority to act on behalf of that person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if a share certificate has been issued by the Company in respect of the share to be transferred, that share certificate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) 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, that the written instrument of transfer is genuine and the right of the transferee to have the transfer registered.

**Form of Instrument of Transfer**

5.2 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 by the directors from time to time or by the transfer agent or registrar for those shares.

**Transferor Remains Shareholder**

5.3 Except to the extent that the Act otherwise provides, the transferor of a share is deemed to remain the holder of it until the name of the transferee is entered in a securities register of the Company in respect of the transfer.

**Signing of Instrument of Transfer**

5.4 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 certificates or set out in the written acknowledgments deposited with the instrument of transfer, or if the shares are uncertificated shares, then all of the shares registered in the name of the shareholder on the central securities register:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the name of the person named as transferee in that instrument of transfer; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**Enquiry as to Title Not Required**

5.5 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 transferred, of any interest in such shares, of any share certificate representing such shares or of any written acknowledgment of a right to obtain a share certificate for such shares.

**Transfer Fee**

5.6 There must be paid to the Company, in relation to the registration of a transfer, the amount, if any, determined by the directors.

**PART 6**

**TRANSMISSION OF SHARES**

**Legal Personal Representative Recognized on Death**

6.1 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 a shareholder, the Company shall receive the documentation required by the Act.

**Rights of Legal Personal Representative**

6.2 The legal personal representative of a shareholder has the same rights, privileges and obligations that attach to the shares held by the shareholder, including the right to transfer the shares in accordance with these Articles, provided the documents required by the Act and the directors have been deposited with the Company. This §6.2 does not apply in the case of the death of a shareholder with respect to shares registered in the name of the shareholder and the name of another person in joint tenancy.

**PART 7**

**PURCHASE, REDEEM OR OTHERWISE ACQUIRE SHARES**

**Company Authorized to Purchase, Redeem or Otherwise Acquire Shares**

7.1 Subject to §7.2, to the special rights and restrictions attached to the shares of any class or series and to the Act, the Company may, if authorized by the directors, purchase, redeem or otherwise acquire any of its shares at the price and upon the terms determined by the directors.

**Purchase When Insolvent**

7.2 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the Company is insolvent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) making the payment or providing the consideration would render the Company insolvent.

**Sale and Voting of Purchased Shares, Redeemed or Otherwise Acquired Shares**

7.3 If the Company retains a share redeemed, purchased or otherwise acquired by it, the Company may sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) is not entitled to vote the share at a meeting of its shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) must not pay a dividend in respect of the share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) must not make any other distribution in respect of the share.

**Company Entitled to Purchase or Redeem Share Fractions**

7.4 The Company may, without prior notice to the holders, purchase, redeem or otherwise acquire for fair value any and all outstanding share fractions of any class or kind of shares in its authorized share structure as may exist at any time and from time to time. Upon the Company delivering the purchase funds and confirmation of purchase or redemption of the share fractions to the holders' registered or last known address, or if the Company has a transfer agent then to such agent for the benefit of and forwarding to such holders, the Company shall thereupon amend its central securities register to reflect the purchase or redemption of such share fractions and if the Company has a transfer agent, shall direct the transfer agent to amend the central securities register accordingly. Any holder of a share fraction, who upon receipt of the funds and confirmation of purchase or redemption of same, disputes the fair value paid for the fraction, shall have the right to apply to the court to request that it set the price and terms of payment and make consequential orders and give directions the court considers appropriate, as if the Company were the "acquiring person" as contemplated by Division 6, Compulsory Acquisitions, under the Act and the holder were an "offeree" subject to the provisions contained in such Division, *mutatis mutandis*.

**PART 8**

**BORROWING POWERS**

8.1 The Company, if authorized by the directors, may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) borrow money in the manner and amount, on the security, from the sources and on the terms and conditions that they consider appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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 the directors consider appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) guarantee the repayment of money by any other person or the performance of any obligation of any other person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) 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.

**PART 9**

**ALTERATIONS**

**Alteration of Authorized Share Structure**

9.1 Subject to §9.2 and the Act, the Company may by ordinary resolution (or a resolution of the directors in the case of §9.1(c) or §9.1(f):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) increase, reduce or eliminate the maximum number of shares that the Company is authorized to issue out 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) subdivide or consolidate all or any of its unissued, or fully paid issued, shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) if the Company is authorized to issue shares of a class of shares with par value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) decrease the par value of those shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) if none of the shares of that class of shares are allotted or issued, increase the par value of those shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) change all or any of its unissued, or fully paid issued, shares with par value into shares without par value or any of its unissued shares without par value into shares with par value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f) alter the identifying name of any of its shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) otherwise alter its shares or authorized share structure when required or permitted to do so by the Act where it does not specify by a special resolution;

and, if applicable, alter its Notice of Articles and Articles accordingly.

**Special Rights and Restrictions**

9.2 Subject to the Act and in particular those provisions of the Act relating to the rights of holders of outstanding shares to vote if their rights are prejudiced or interfered with, the Company may by ordinary resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) create special rights or restrictions for, and attach those special rights or restrictions to, the shares of any class or series of shares, whether or not any or all of those shares have been issued; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) vary or delete any special rights or restrictions attached to the shares of any class or series of shares, whether or not any or all of those shares have been issued,

and alter its Notice of Articles and Articles accordingly.

**Change of Name**

9.3 The Company may by directors resolution authorize an alteration of its Notice of Articles in order to change its name or adopt or change any translation of that name.

**Other Alterations**

9.4 If the Act does not specify the type of resolution and these Articles do not specify another type of resolution, the Company may by ordinary resolution alter these Articles.

**PART 10**

**MEETINGS OF SHAREHOLDERS**

**Annual General Meetings**

10.1 Unless an annual general meeting is deferred or waived in accordance with the 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 the directors.

**Resolution Instead of Annual General Meeting**

10.2 If all the shareholders who are entitled to vote at an annual general meeting consent in writing 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 §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.

**Calling of Meetings of Shareholders**

10.3 The directors may, at any time, call a meeting of shareholders.

**Notice for Meetings of Shareholders**

10.4 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 ordinary 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) if the Company is a public company, 21 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) otherwise, 10 days.

**Record Date for Notice**

10.5 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 Act, by more than four months. The record date must not precede the date on which the meeting is held by fewer than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) if the Company is a public company, 21 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) otherwise, 10 days.

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.

**Record Date for Voting**

10.6 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 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.

**Failure to Give Notice and Waiver of Notice**

10.7 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.

**Notice of Special Business at Meetings of Shareholders**

10.8 If a meeting of shareholders is to consider special business within the meaning of §11.1, the notice of meeting must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) state the general nature of the special business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at the Company's records office, or at such other reasonably accessible location in British Columbia as is specified in the notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) during statutory business hours on any one or more specified days before the day set for the holding of the meeting.

**Place of Meetings**

10.9 In addition to any location in British Columbia, any general meeting may be held in any location outside British Columbia approved by a resolution of the directors.

**PART 11**

**PROCEEDINGS AT MEETINGS OF SHAREHOLDERS**

**Special Business**

11.1 At a meeting of shareholders, the following business is special business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at an annual general meeting, all business is special business except for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) business relating to the conduct of or voting at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) consideration of any financial statements of the Company presented to the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) consideration of any reports of the directors or auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) the setting or changing of the number of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) the election or appointment of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi) the appointment of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii) the setting of the remuneration of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) business arising out of a report of the directors not requiring the passing of a special resolution or an exceptional resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any other business which, under these Articles or the Act, may be transacted at a meeting of shareholders without prior notice of the business being given to the shareholders.

**Special Majority**

11.2 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.

**Quorum**

11.3 Subject to the special rights and restrictions attached to the shares of any class or series of shares, and to §11.4, the quorum for the transaction of business at a meeting of shareholders is at least one person who is, or who represents by proxy, one or more shareholders who, in the aggregate, hold at least five percent of the issued shares entitled to be voted at the meeting.

**One Shareholder May Constitute Quorum**

11.4 If there is only one shareholder entitled to vote at a meeting of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the quorum is one person who is, or who represents by proxy, that shareholder, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) that shareholder, present in person or by proxy, may constitute the meeting.

**Persons Entitled to Attend Meeting**

11.5 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 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 proxy holder entitled to vote at the meeting.

**Requirement of Quorum**

11.6 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.

**Lack of Quorum**

11.7 If, within one-half hour from the time set for the holding of a meeting of shareholders, a quorum is not present:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of a general meeting requisitioned by shareholders, the meeting is dissolved, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**Lack of Quorum at Succeeding Meeting**

11.8 If, at the meeting to which the meeting referred to in §11.7(b) was adjourned, a quorum is not present within one-half hour from the time set for the holding of the meeting, the person or persons present and being, or representing by proxy, one or more shareholders entitled to attend and vote at the meeting shall be deemed to constitute a quorum.

**Chair**

11.9 The following individual is entitled to preside as chair at a meeting of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the chair of the board, if any; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the chair of the board is absent or unwilling to act as chair of the meeting, the president, if any.

**Selection of Alternate Chair**

11.10 If, at any meeting of shareholders, there is no chair of the board or president present within 15 minutes after the time set for holding the meeting, or if the chair of the board and the president are unwilling to act as chair of 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 may choose either one of their number or the solicitor of the Company to be chair of the meeting. If all of the directors present decline to take the chair or fail to so choose or if no director is present or the solicitor of the Company declines 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.

**Adjournments**

11.11 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.

**Notice of Adjourned Meeting**

11.12 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.

**Decisions by Show of Hands or Poll**

11.13 Subject to the 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.

**Declaration of Result**

11.14 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 §11.13, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or against the resolution.

**Motion Need Not be Seconded**

11.15 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.

**Casting Vote**

11.16 In case of an equality of votes, the chair of a meeting of shareholders does not, either on a show of hands or on a poll, have a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder.

**Manner of Taking Poll**

11.17 Subject to §11.18, if a poll is duly demanded at a meeting of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the poll must be taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at the meeting, or within seven days after the date of the meeting, as the chair of the meeting directs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in the manner, at the time and at the place that the chair of the meeting directs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the result of the poll is deemed to be the decision of the meeting at which the poll is demanded; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) the demand for the poll may be withdrawn by the person who demanded it.

**Demand for Poll on Adjournment**

11.18 A poll demanded at a meeting of shareholders on a question of adjournment must be taken immediately at the meeting.

**Chair Must Resolve Dispute**

11.19 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.

**Casting of Votes**

11.20 On a poll, a shareholder entitled to more than one vote need not cast all the votes in the same way.

**No Demand for Poll on Election of Chair**

11.21 No poll may be demanded in respect of the vote by which a chair of a meeting of shareholders is elected.

**Demand for Poll Not to Prevent Continuance of Meeting**

11.22 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.

**Retention of Ballots and Proxies**

11.23 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 proxyholder entitled to vote at the meeting. At the end of such three month period, the Company may destroy such ballots and proxies.

**PART 12**

**VOTES OF SHAREHOLDERS**

**Number of Votes by Shareholder or by Shares**

12.1 Subject to any special rights or restrictions attached to any shares and to the restrictions imposed on joint shareholders under §12.3:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**Votes of Persons in Representative Capacity**

12.2 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.

**Votes by Joint Holders**

12.3 If there are joint shareholders registered in respect of any share:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any one of the joint shareholders may vote at any meeting of shareholders, personally or by proxy, in respect of the share as if that joint shareholder were solely entitled to it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**Legal Personal Representatives as Joint Shareholders**

12.4 Two or more legal personal representatives of a shareholder in whose sole name any share is registered are, for the purposes of §12.3, deemed to be joint shareholders registered in respect of that share.

**Representative of a Corporate Shareholder**

12.5 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) for that purpose, the instrument appointing a representative must be received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at the meeting or any adjourned meeting, by the chair of the meeting or adjourned meeting or by a person designated by the chair of the meeting or adjourned meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) if a representative is appointed under this §12.5:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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 customary method of transmitting recorded messages.

**Proxy Provisions Do Not Apply to All Companies**

12.6 If and for so long as the Company 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, then §12.7 to §12.15 are not mandatory, however the directors of the Company are authorized to apply all or part of such sections or to adopt alternative procedures for proxy form, deposit and revocation procedures to the extent that the directors deem necessary in order to comply with securities laws applicable to the Company.

**Appointment of Proxy Holders**

12.7 Every shareholder of the Company entitled to vote at a meeting of shareholders may, by proxy, appoint one or more (but not more than two) proxy holders to attend and act at the meeting in the manner, to the extent and with the powers conferred by the proxy.

**Alternate Proxy Holders**

12.8 A shareholder may appoint one or more alternate proxy holders to act in the place of an absent proxy holder.

**Proxy Holder Need Not Be Shareholder**

12.9 A proxy holder need not be a shareholder of the Company.

**Deposit of Proxy**

12.10 A proxy for a meeting of shareholders must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) unless the notice provides otherwise, be received, at the meeting or any adjourned meeting, by the chair of the meeting or 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, including through Internet or telephone voting or by email, if permitted by the notice calling the meeting or the information circular for the meeting.

**Validity of Proxy Vote**

12.11 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**Form of Proxy**

12.12 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 if given in respect of all shares registered in the name of the undersigned):<u> </u>

---

| |
|:---|
| Signed [month, day, year] |
| [Signature of shareholder] |
| [Name of shareholder—printed] |

---

**Revocation of Proxy**

12.13 Subject to §12.14, every proxy may be revoked by an instrument in writing that is received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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.

**Revocation of Proxy Must Be Signed**

12.14 An instrument referred to in §12.13 must be signed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if the shareholder for whom the proxy holder is appointed is an individual, the instrument must be signed by the shareholder or the shareholder's legal personal representative or trustee in bankruptcy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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 §12.5.

**Production of Evidence of Authority to Vote**

12.15 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.

**PART 13**

**DIRECTORS**

**First Directors; Number of Directors**

13.1 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 Act. The number of directors, excluding additional directors appointed under §14.8, is set at:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) subject to §(b) and §(c), the number of directors that is equal to the number of the Company's first directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the Company is a public company, the greater of three and the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the number of directors set by a resolution of the directors (whether or not previous notice of the resolution was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) the number of directors in office pursuant to §14.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) if the Company is not a public company, the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the number of directors set by a resolution of the directors (whether or not previous notice of the resolution was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) the number of directors in office pursuant to §14.4.

**Change in Number of Directors**

13.2 If the number of directors is set under §13.1(b)(i) or §13.1(c)(i):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the shareholders may elect or appoint the directors needed to fill any vacancies in the board of directors up to that number; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if the shareholders do not elect or appoint the directors needed to fill any vacancies in the board of directors up to that number then the directors, subject to §14.8, may appoint directors to fill those vacancies.

**Directors' Acts Valid Despite Vacancy**

13.3 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.

**Qualifications of Directors**

13.4 A director is not required to hold a share as qualification for his or her office but must be qualified as required by the Act to become, act or continue to act as a director.

**Remuneration of Directors**

13.5 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.

**Reimbursement of Expenses of Directors**

13.6 The Company must reimburse each director for the reasonable expenses that he or she may incur in and about the business of the Company.

**Special Remuneration for Directors**

13.7 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, he or she may be paid remuneration fixed by the directors, or at the option of the directors, fixed by ordinary resolution, and such remuneration will be in addition to any other remuneration that he or she may be entitled to receive.

**Gratuity, Pension or Allowance on Retirement of Director**

13.8 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 who has held any salaried office or place of profit with the Company 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.

**PART 14**

**ELECTION AND REMOVAL OF DIRECTORS**

**Election at Annual General Meeting**

14.1 At every annual general meeting and in every unanimous resolution contemplated by §10.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all the directors cease to hold office immediately before the election or appointment of directors under §(a), but are eligible for re-election or re-appointment.

**Consent to be a Director**

14.2 No election, appointment or designation of an individual as a director is valid unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) that individual consents to be a director in the manner provided for in the Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) with respect to first directors, the designation is otherwise valid under the Act.

**Failure to Elect or Appoint Directors**

14.3 If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 §10.2, on or before the date by which the annual general meeting is required to be held under the Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the shareholders fail, at the annual general meeting or in the unanimous resolution contemplated by §10.2, to elect or appoint any directors;

then each director then in office continues to hold office until the earlier of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) when his or her successor is elected or appointed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) when he or she otherwise ceases to hold office under the Act or these Articles.

**Places of Retiring Directors Not Filled**

14.4 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 but their term of office shall expire when 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.

**Directors May Fill Casual Vacancies**

14.5 Any casual vacancy occurring in the board of directors may be filled by the directors.

**Remaining Directors Power to Act**

14.6 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 Act, for any other purpose.

**Shareholders May Fill Vacancies**

14.7 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.

**Additional Directors**

14.8 Notwithstanding §13.1 and §13.2, between annual general meetings or by unanimous resolutions contemplated by §10.2, the directors may appoint one or more additional directors, but the number of additional directors appointed under this §14.8 must not at any time exceed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in any other case, one-third of the number of the current directors who were elected or appointed as directors other than under this §14.8.

Any director so appointed ceases to hold office immediately before the next election or appointment of directors under §14.1(a), but is eligible for re-election or re-appointment.

**Ceasing to be a Director**

14.9 A director ceases to be a director when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the term of office of the director expires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) the director dies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the director resigns as a director by notice in writing provided to the Company or a lawyer for the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) the director is removed from office pursuant to §14.10 or §14.11.

**Removal of Director by Shareholders**

14.10 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.

**Removal of Director by Directors**

14.11 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.

**Nomination of Directors**

14.12 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject only to the Act, only persons who are nominated in accordance with the following procedures shall be eligible for election as directors of the Company. Nominations of persons for election to the board may be made at any annual meeting of shareholders, or at any special meeting of shareholders (but only if the election of directors is a matter specified in the notice of meeting given by or at the direction of the person calling such special meeting):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) by or at the direction of the board or an authorized officer of the Company, including pursuant to a notice of meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) by or at the direction or request of one or more shareholders pursuant to a proposal made in accordance with the provisions of the Act or a requisition of the shareholders made in accordance with the provisions of the Act; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) by any person (a "**Nominating Shareholder**") (A) who, at the close of business on the date of the giving of the notice provided for below in this §14.12 and on the record date for notice of such meeting, is entered in the securities register as a holder of one or more shares carrying the right to vote at such meeting or who beneficially owns shares that are entitled to be voted at such meeting and (B) who complies with the notice procedures set forth below in this §14.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to any other applicable requirements, for a nomination to be made by a Nominating Shareholder, such person must be give

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) timely notice thereof in proper written form to an officer of the Company at the principal executive offices of the Company in accordance with this §14.12.and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) the representation and agreement with respect to each candidate for nomination as required by, and within the time period specified in §14.12(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To be timely under §14.12(b)(i), a Nominating Shareholder's notice to an officer of the Company, being either the Chief Executive Officer, the Chief Financial Officer, or the Corporate Secretary (singularly, "**an officer of the Company**"), must be made:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) in the case of an annual meeting of shareholders, not less than 30 nor more than 65 days prior to the date of the annual meeting of shareholders; provided, however, that in the event that the annual meeting of shareholders is called for a date that is less than 40 days after the date (the "**Notice Date**") on which the first public announcement of the date of the annual meeting was made, notice by the Nominating Shareholder may be made not later than the tenth (10th) day following the Notice Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) in the case of a special meeting (which is not also an annual meeting) of shareholders called for the purpose of electing directors (whether or not called for other purposes), not later than the fifteenth (15th) day following the day on which the first public announcement of the date of the special meeting of shareholders was made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) Notwithstanding the foregoing, the board may, in its sole discretion, waive any requirement in this §14.12(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To be in proper written form, a Nominating Shareholder's notice to an officer of the Company, under §14.12(b) must set forth:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) as to each person whom the Nominating Shareholder proposes to nominate for election as a director (A) the name, age, business address and residence address of the person, (B) the principal occupation or employment of the person, (C) the class or series and number of shares in the capital of the Company which are controlled or which are owned beneficially or of record by the person as of the record date for the Meeting of Shareholders (if such date shall then have been made publicly available and shall have occurred) and as of the date of such notice, (D) a statement as to whether such person would be "independent" of the Company (within the meaning of sections 1.4 and 1.5 of National Instrument 52-110 – *Audit Committees* of the Canadian Securities Administrators, as such provisions may be amended from time to time) if elected as a director at such meeting and the reasons and basis for such determination and (E) any other information relating to the person that would be required to be disclosed in a dissident's proxy circular in connection with solicitations of proxies for election of directors pursuant to the Act and Applicable Securities Laws; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) as to the Nominating Shareholder giving the notice, (A) any information relating to such Nominating Shareholder that would be required to be made in a dissident's proxy circular in connection with solicitations of proxies for election of directors pursuant to the Act and Applicable Securities Laws, and (B) the class or series and number of shares in the capital of the Company which are controlled or which are owned beneficially or of record by the Nominating Shareholder as of the record date for the Meeting of Shareholders (if such date shall then have been made publicly available and shall have occurred) and as of the date of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To be eligible to be a candidate for election as a director of the Company and to be duly nominated, a candidate must be nominated in the manner prescribed in this §14.12 and the candidate for nomination, whether nominated by the board or otherwise, must have previously delivered to an officer of the Company at the principal executive offices of the Company, not less than 5 days prior to the date of the Meeting of Shareholders, a written representation and agreement (in form provided by the Company) that such candidate for nomination, if elected as a director of the Company, will comply with all applicable corporate governance, conflict of interest, confidentiality, share ownership, majority voting and insider trading policies and other policies and guidelines of the Company applicable to directors and in effect during such person's term in office as a director (and, if requested by any candidate for nomination, an officer of the Company shall provide to such candidate for nomination all such policies and guidelines then in effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No person shall be eligible for election as a director of the Company unless nominated in accordance with the provisions of this §14.12; provided, however, that nothing in this §14.12 shall be deemed to preclude discussion by a shareholder (as distinct from nominating directors) at a meeting of shareholders of any matter in respect of which it would have been entitled to submit a proposal pursuant to the provisions of the Act. The chair of the meeting shall have the power and duty to determine whether a nomination was made in accordance with the procedures set forth in the foregoing provisions and, if any proposed nomination is not in compliance with such foregoing provisions, to declare that such defective nomination shall be disregarded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g) For purposes of this §14.12:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) "**Affiliate**", when used to indicate a relationship with a person, shall mean a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, such specified person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) "**Applicable Securities Laws**" means the *Securities Act* (British Columbia) and the equivalent legislation in the other provinces and in the territories of Canada, as amended from time to time, the rules, regulations and forms made or promulgated under any such statute and the published national instruments, multilateral instruments, policies, bulletins and notices of the securities commissions and similar regulatory authorities of each of the applicable provinces and territories of Canada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) "**Associate**", when used to indicate a relationship with a specified person, shall mean (A) any corporation or trust of which such person owns beneficially, directly or indirectly, voting securities carrying more than 10% of the voting rights attached to all voting securities of such corporation or trust for the time being outstanding, (B) any partner of that person, (C) any trust or estate in which such person has a substantial beneficial interest or as to which such person serves as trustee or in a similar capacity, (D) a spouse of such specified person, (E) any person of either sex with whom such specified person is living in conjugal relationship outside marriage or (F) any relative of such specified person or of a person mentioned in clauses (D) or (E) of this definition if that relative has the same residence as the specified person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) "**Derivatives Contract**" shall mean a contract between two parties (the "Receiving Party" and the "Counterparty") that is designed to expose the Receiving Party to economic benefits and risks that correspond substantially to the ownership by the Receiving Party of a number of shares in the capital of the Company or securities convertible into such shares specified or referenced in such contract (the number corresponding to such economic benefits and risks, the "Notional Securities"), regardless of whether obligations under such contract are required or permitted to be settled through the delivery of cash, shares in the capital of the Company or securities convertible into such shares or other property, without regard to any short position under the same or any other Derivatives Contract. For the avoidance of doubt, interests in broad-based index options, broad- based index futures and broad-based publicly traded market baskets of stocks approved for trading by the appropriate governmental authority shall not be deemed to be Derivatives Contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v) "**Meeting of Shareholders**" shall mean such annual shareholders meeting or special shareholders meeting, whether general or not, at which one or more persons are nominated for election to the board by a Nominating Shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vi) "**owned beneficially**" or "**owns beneficially**" means, in connection with the ownership of shares in the capital of the Company by a person, (A) any such shares as to which such person or any of such person's Affiliates or Associates owns at law or in equity, or has the right to acquire or become the owner at law or in equity, where such right is exercisable immediately or after the passage of time and whether or not on condition or the happening of any contingency or the making of any payment, upon the exercise of any conversion right, exchange right or purchase right attaching to any securities, or pursuant to any agreement, arrangement, pledge or understanding whether or not in writing; (B) any such shares as to which such person or any of such person's Affiliates or Associates has the right to vote, or the right to direct the voting, where such right is exercisable immediately or after the passage of time and whether or not on condition or the happening of any contingency or the making of any payment, pursuant to any agreement, arrangement, pledge or understanding whether or not in writing; (C) any such shares which are beneficially owned, directly or indirectly, by a Counterparty (or any of such Counterparty's Affiliates or Associates) under any Derivatives Contract (without regard to any short or similar position under the same or any other Derivatives Contract) to which such person or any of such person's Affiliates or Associates is a Receiving Party; provided, however that the number of shares that a person owns beneficially pursuant to this clause (C) in connection with a particular Derivatives Contract shall not exceed the number of Notional Securities with respect to such Derivatives Contract; provided, further, that the number of securities owned beneficially by each Counterparty (including their respective Affiliates and Associates) under a Derivatives Contract shall for purposes of this clause be deemed to include all securities that are owned beneficially, directly or indirectly, by any other Counterparty (or any of such other Counterparty's Affiliates or Associates) under any Derivatives Contract to which such first Counterparty (or any of such first Counterparty's Affiliates or Associates) is a Receiving Party and this proviso shall be applied to successive Counterparties as appropriate; and (D) any such shares which are owned beneficially within the meaning of this definition by any other person with whom such person is acting jointly or in concert with respect to the Company or any of its securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (vii) "**public announcement**" shall mean disclosure in a press release reported by a national news service in Canada, or in a document publicly filed by the Company or its agents under its profile on the System of Electronic Document Analysis and Retrieval at www.sedar.com.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding any other provision to this §14.12, notice or any delivery given to an officer of the Company pursuant to this §14.12 may only be given by personal delivery, facsimile transmission or by email (provided that an officer of the Company has stipulated an email address for purposes of this notice, at such email address as stipulated from time to time), and shall be deemed to have been given and made only at the time it is served by personal delivery, email (at the address as aforesaid) or sent by facsimile transmission (provided that receipt of confirmation of such transmission has been received) to an officer of the Company at the address of the principal executive offices of the Company; provided that if such delivery or electronic communication is made on a day which is a not a business day or later than 5:00 p.m. (Vancouver time) on a day which is a business day, then such delivery or electronic communication shall be deemed to have been made on the subsequent day that is a business day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In no event shall any adjournment or postponement of a Meeting of Shareholders or the announcement thereof commence a new time period for the giving of a Nominating Shareholder's notice as described in §14.12(c) or the delivery of a representation and agreement as described in §14.12(e).

**PART 15**

**ALTERNATE DIRECTORS**

**Appointment of Alternate Director**

15.1 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.

**Notice of Meetings**

15.2 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.

**Alternate for More than One Director Attending Meetings**

15.3 A person may be appointed as an alternate director by more than one director, and an alternate director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 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 directors, once more in that capacity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) 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.

**Consent Resolutions**

15.4 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.

**Alternate Director an Agent**

15.5 Every alternate director is deemed to be the agent of his or her appointor.

**Revocation or Amendment of Appointment of Alternate Director**

15.6 An appointor may at any time, by notice in writing received by the Company, revoke or amend the terms of the appointment of an alternate director appointed by him or her.

**Ceasing to be an Alternate Director**

15.7 The appointment of an alternate director ceases when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) his or her appointor ceases to be a director and is not promptly re-elected or re- appointed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) the alternate director dies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the alternate director resigns as an alternate director by notice in writing provided to the Company or a lawyer for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) the alternate director ceases to be qualified to act as a director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the term of his appointment expires, or his or her appointor revokes the appointment of the alternate directors.

**Remuneration and Expenses of Alternate Director**

15.8 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.

**PART 16**

**POWERS AND DUTIES OF DIRECTORS**

**Powers of Management**

16.1 The directors must, subject to the 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 Act or by these Articles, required to be exercised by the shareholders of the Company. Notwithstanding the generality of the foregoing, the directors may set the remuneration of the auditor of the Company.

**Appointment of Attorney of Company**

16.2 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.

**Remuneration of an Auditor**

16.3 The directors may from time to time set the remuneration of an auditor.

**PART 17**

**INTERESTS OF DIRECTORS AND OFFICERS**

**Obligation to Account for Profits**

17.1 A director or senior officer who holds a disclosable interest (as that term is used in the 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 Act.

**Restrictions on Voting by Reason of Interest**

17.2 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.

**Interested Director Counted in Quorum**

17.3 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.

**Disclosure of Conflict of Interest or Property**

17.4 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 Act.

**Director Holding Other Office in the Company**

17.5 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 Disqualification**

17.6 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.

**Professional Services by Director or Officer**

17.7 Subject to the 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.

**Director or Officer in Other Corporations**

17.8 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 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.

**PART 18**

**PROCEEDINGS OF DIRECTORS**

**Meetings of Directors**

18.1 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.

**Voting at Meetings**

18.2 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 has a second or casting vote.

**Chair of Meetings**

18.3 The following individual is entitled to preside as chair at a meeting of directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the chair of the board, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the absence of the chair of the board, the president, if any, if the president is a director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) any other director chosen by the directors if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) neither the chair of the board nor the president, if a director, is present at the meeting within 15 minutes after the time set for holding the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) neither the chair of the board nor the president, if a director, is willing to chair the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the chair of the board and the president, if a director, have advised the secretary, if any, or any other director, that they will not be present at the meeting.

**Meetings by Telephone or Other Communications Medium**

18.4 A director may participate in a meeting of the directors or of any committee of the directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) in person; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by telephone or 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 §18.4 is deemed for all purposes of the Act and these Articles to be present at the meeting and to have agreed to participate in that manner.

**Calling of Meetings**

18.5 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.

**Notice of Meetings**

18.6 Other than for meetings held at regular intervals as determined by the directors pursuant to §18.1, 48 hours' notice of each meeting of the directors, specifying the place, day and time of that meeting must be given to each of the directors by any method set out in §24.1 or orally or by telephone.

**When Notice Not Required**

18.7 It is not necessary to give notice of a meeting of the directors to a director if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) the director has waived notice of the meeting.

**Meeting Valid Despite Failure to Give Notice**

18.8 The accidental omission to give notice of any meeting of directors to, or the non- receipt of any notice by, any director, does not invalidate any proceedings at that meeting.

**Waiver of Notice of Meetings**

18.9 Any 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 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. Attendance of a director or alternate director at a meeting of the 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.

**Quorum**

18.10 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 a majority of the 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.

**Validity of Acts Where Appointment Defective**

18.11 Subject to the 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.

**Consent Resolutions in Writing**

18.12 A resolution of the directors or of any committee of the directors may be passed without a meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in all cases, if each of the directors entitled to vote on the resolution consents to it in writing; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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 18 may be by signed document, fax, email 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 §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 Act and all the requirements of these Articles relating to meetings of the directors or of a committee of the directors.

**PART 19**

**EXECUTIVE AND OTHER COMMITTEES**

**Appointment and Powers of Executive Committee**

19.1 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the power to fill vacancies in the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) the power to remove a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the power to change the membership of, or fill vacancies in, any committee of the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) such other powers, if any, as may be set out in the resolution or any subsequent directors' resolution.

**Appointment and Powers of Other Committees**

19.2 The directors may, by resolution:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) appoint one or more committees (other than the executive committee) consisting of the director or directors that they consider appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) delegate to a committee appointed under §(a) any of the directors' powers, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the power to fill vacancies in the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) the power to remove a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the power to change the membership of, or fill vacancies in, any committee of the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv) the power to appoint or remove officers appointed by the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) make any delegation referred to in §(b) subject to the conditions set out in the resolution or any subsequent directors' resolution.

**Obligations of Committees**

19.3 Any committee appointed under §19.1 or §19.2, in the exercise of the powers delegated to it, must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) conform to any rules that may from time to time be imposed on it by the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) report every act or thing done in exercise of those powers at such times as the directors may require.

**Powers of Board**

19.4 The directors may, at any time, with respect to a committee appointed under §19.1 or §19.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) terminate the appointment of, or change the membership of, the committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) fill vacancies in the committee.

**Committee Meetings**

19.5 Subject to §19.3(a) and unless the directors otherwise provide in the resolution appointing the committee or in any subsequent resolution, with respect to a committee appointed under §19.1 or §19.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the committee may meet and adjourn as it thinks proper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a majority of the members of the committee constitutes a quorum of the committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) 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.

**PART 20**

**OFFICERS**

**Directors May Appoint Officers**

20.1 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.

**Functions, Duties and Powers of Officers**

20.2 The directors may, for each officer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) determine the functions and duties of the officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) revoke, withdraw, alter or vary all or any of the functions, duties and powers of the officer.

**Qualifications**

20.3 No person may be appointed as an officer unless that person is qualified in accordance with the 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 a managing director must be a director. Any other officer need not be a director.

**Remuneration and Terms of Appointment**

20.4 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.

**PART 21**

**INDEMNIFICATION**

**Definitions**

21.1 In this Part 21:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) "**eligible party**", in relation to a company, means an individual who:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) is or was a director, alternate director or officer of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) is or was a director, alternate director or officer of another corporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) at a time when the corporation is or was an affiliate of the Company, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (B) at the request of the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) at the request of the Company, is or was, or 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;

and includes, except in the definition of "eligible proceeding", and §163(1)(c) and (d) and §165 of the Act, the heirs and personal or other legal representatives of that individual;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "**eligible penalty**" means a judgment, penalty or fine awarded or imposed in, or an amount paid in settlement of, an eligible proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "**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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) is or may be joined as a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) is or may be liable for or in respect of a judgment, penalty or fine in, or expenses related to, the proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "**expenses**" has the meaning set out in the Act and 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "**proceeding**" includes any legal proceeding or investigative action, whether current, threatened, pending or completed.

**Mandatory Indemnification of Eligible Parties**

21.2 Subject to the Act, the Company must indemnify each eligible party and the heirs and legal personal representatives of each eligible party 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 eligible party is deemed to have contracted with the Company on the terms of the indemnity contained in this §21.2.

**Indemnification of Other Persons**

21.3 Subject to any restrictions in the Act, the Company may agree to indemnify and may indemnify any person (including an eligible party) against eligible penalties and pay expenses incurred in connection with the performance of services by that person for the Company.

**Authority to Advance Expenses**

21.4 The Company may advance expenses to an eligible party to the extent permitted by and in accordance with the Act.

**Non-Compliance with Act**

21.5 Subject to the Act, the failure of an eligible party of the Company to comply with the Act or these Articles or, if applicable, any former *Companies Act* or former Articles does not, of itself, invalidate any indemnity to which he or she is entitled under this Part 21.

**Company May Purchase Insurance**

21.6 The Company may purchase and maintain insurance for the benefit of any eligible party person (or his or her heirs or legal personal representatives of any eligible party) against any liability incurred by any eligible party.

**PART 22**

**DIVIDENDS**

**Payment of Dividends Subject to Special Rights**

22.1 The provisions of this Part 22 are subject to the rights, if any, of shareholders holding shares with special rights as to dividends.

**Declaration of Dividends**

22.2 Subject to the Act, the directors may from time to time declare and authorize payment of such dividends as they may deem advisable.

**No Notice Required**

22.3 The directors need not give notice to any shareholder of any declaration under §22.2.

**Record Date**

22.4 The directors must 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.

**Manner of Paying Dividend**

22.5 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.

**Settlement of Difficulties**

22.6 If any difficulty arises in regard to a distribution under §22.5, the directors may settle the difficulty as they deem advisable, and, in particular, may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) set the value for distribution of specific assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) vest any such specific assets in trustees for the persons entitled to the dividend.

**When Dividend Payable**

22.7 Any dividend may be made payable on such date as is fixed by the directors.

**Dividends to be Paid in Accordance with Number of Shares**

22.8 All dividends on shares of any class or series of shares must be declared and paid according to the number of such shares held.

**Receipt by Joint Shareholders**

22.9 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.

**Dividend Bears No Interest**

22.10 No dividend bears interest against the Company.

**Fractional Dividends**

22.11 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.

**Payment of Dividends**

22.12 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.

**Capitalization of Retained Earnings or Surplus**

22.13 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.

**PART 23**

**ACCOUNTING RECORDS AND AUDITORS**

**Recording of Financial Affairs**

23.1 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 Act.

**Inspection of Accounting Records**

23.2 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.

**Remuneration of Auditor**

23.3 The directors may set the remuneration of the auditor of the Company.

**PART 24**

**NOTICES**

**Method of Giving Notice**

24.1 Unless the Act or these Articles provide otherwise, a notice, statement, report or other record required or permitted by the Act or these Articles to be sent by or to a person may be sent by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) mail addressed to the person at the applicable address for that person as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) for a record mailed to a shareholder, the shareholder's registered address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) in any other case, the mailing address of the intended recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) delivery at the applicable address for that person as follows, addressed to the person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) for a record delivered to a shareholder, the shareholder's registered address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) in any other case, the delivery address of the intended recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e) physical delivery to the intended recipient.

**Deemed Receipt of Mailing**

24.2 A notice, statement, report or other record that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) mailed to a person by ordinary mail to the applicable address for that person referred to in §24.1 i 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) faxed to a person to the fax number provided by that person referred to in §24.1 is deemed to be received by the person to whom it was faxed on the day it was faxed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) emailed to a person to the e-mail address provided by that person referred to in §24.1 is deemed to be received by the person to whom it was e-mailed on the day that it was emailed.

**Certificate of Sending**

24.3 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 §24.1is conclusive evidence of that fact.

**Notice to Joint Shareholders**

24.4 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.

**Notice to Legal Personal Representatives and Trustees**

24.5 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) mailing the record, addressed to them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) at the address, if any, supplied to the Company for that purpose by the persons claiming to be so entitled; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if an address referred to in §(a)(ii) 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.

**Undelivered Notices**

24.6 If on two consecutive occasions, a notice, statement, report or other record is sent to a shareholder pursuant to §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.

**PART 25**

**SEAL**

**Who May Attest Seal**

25.1 Except as provided in §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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) any two directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) any officer, together with any director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c) if the Company only has one director, that director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any one or more directors or officers or persons as may be determined by the directors.

**Sealing Copies**

25.2 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 §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.

**Mechanical Reproduction of Seal**

25.3 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 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 §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.

**PART 26**

**SPECIAL RIGHTS AND RESTRICTIONS**

**COMMON AND PREFERRED SHARES**

**Common Shares**

26.1 The special rights and restrictions attached to the Common shares are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each holder of a Common share shall be entitled to receive notice of and to attend all meetings of shareholders of the Company, except meetings at which only holders of other classes or series of shares are entitled to attend, and at all such meetings shall be entitled to one vote in respect of each Common share held by such holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The holders of Common shares shall be entitled to receive dividends if and when declared by the directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of any liquidation, dissolution or winding-up of the Company or other distribution of the assets of the company among its shareholders for the purpose of winding-up its affairs, the holders of Common shares shall be entitled, subject to the rights of the holders of shares of any class ranking prior to the Common shares, to receive the remaining property or assets of the Company.

**Preferred Shares**

26.2 The directors may create different series of preferred shares with different rights and restrictions as determined by the directors.

26.3 The special rights and restrictions attached to any series of Preferred shares are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the provisions of the *Business Corporations Act*, the holders of the Preferred shares shall not, as such, have any right to vote at a general meeting of the Company, nor shall they be entitled, as such, to notice of or to attend shareholders' meetings other than a meeting of the class of shareholders holding Preferred shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Preferred shares may from time to time be issued in one or more series and subject to the following provisions, the directors may fix from time to time before such issuance the number of shares that is to comprise each series and the designation, rights, privileges, restrictions and conditions attaching to each series of Preferred shares, including, without limiting the generality of the foregoing, the rate or amount of dividends or the method of calculating dividends, the dates of payment thereof, the redemption, purchase and / or conversion prices and terms and conditions of redemption, purchase and / or conversion, and any sinking fund or other provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Preferred shares of each series shall, with respect to the payment of dividends and the distribution of assets or return of capital in the event of liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, or any other return of capital or distribution of the assets of the Company among its shareholders for the purpose of winding-up its affairs, rank on a parity with the Preferred shares of every other series and be entitled to preference over the Common shares and over any other shares of the Company ranking junior to the Preferred shares. The Preferred shares of any series may also be given such other preferences, not inconsistent with these Articles, over the Preferred shares and any other shares of the Company ranking junior to the Preferred shares as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If any cumulative dividends or amounts payable on the return of capital in respect of a series of Preferred shares are not paid in full, all series of Preferred shares shall participate rateably in respect of such dividends and return of capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Preferred shares of any series may be made convertible into Preferred shares of any other series or Common shares at such rate and upon such basis as the directors may determine.

## Exhibit 4.1

**Exhibit 4.1**

![](ex4-1_001.jpg)

![](ex4-1_002.jpg)

## Exhibit 5.1

**Exhibit 5.1**

August 26, 2024

LEEF Brands, Inc.

Suite 2500 Park Place

666 Burrard Street

Vancouver, BC V6C 2X8, Canada

Dear Mesdames/Sirs:

**<u>Re: LEEF Brands, Inc. - Registration Statement on Form S-1</u>**

We have acted as special Canadian legal counsel to LEEF Brands, Inc., a British Columbia corporation (the "**Company**"), in connection with the Company's registration statement on Form S-1 filed on August 14, 2025 (the "**Registration Statement**") with the U.S. Securities and Exchange Commission (the "**Commission**") including a related prospectus filed with the Registration Statement (the "**Prospectus**"), for the proposed resale of common shares (each, a "**Share**") by certain selling securityholders.

In connection with this opinion, we have reviewed and relied upon originals, photocopies or copies, certified or otherwise identified to our satisfaction, of the Registration Statement and the Prospectus, the Company's notice of articles and articles, records of the Company's corporate proceedings in connection with the issuance of the Shares and such other documents, records, certificates, memoranda and other instruments as we deem necessary as a basis for this opinion. With respect to the foregoing documents, we have assumed, without independent investigation: (i) the authenticity of all records, documents, and instruments submitted to us as originals; (ii) the genuineness of all signatures on all agreements, instruments and other documents submitted to us; (iii) the legal capacity and authority of all persons or entities (other than the Company) executing all agreements, instruments or other documents submitted to us; (iv) the authenticity and the conformity to the originals of all records, documents, and instruments submitted to us as copies; (v) that the statements contained in the certificates and comparable documents of public officials, officers and representatives of the Company and other persons on which we have relied for purposes of this opinion are true and correct; (vi) the due authorization, execution and delivery of all agreements, instruments and other documents by all parties thereto (other than the due authorization, execution and delivery of each such agreement, instrument and document by the Company); and (vii) that the Registration Statement has been declared effective pursuant to the U.S. Securities Act of 1933, as amended (the "**Securities Act**"). We have also obtained from officers of the Company certificates as to certain factual matters and, insofar as this opinion is based on matters of fact, we have relied on such certificates without independent investigation.

Our opinion is limited to laws of the Province of British Columbia. We have not considered, and have not expressed any opinion with regard to, or as to the effect of, any other law, rule, or regulation, provincial, state or federal, applicable to the Company. In particular, we express no opinion as to United States federal securities laws.

Based upon the foregoing and in reliance thereon, and subject to the qualifications and limitations set forth herein, we are of the opinion that the Shares are validly issued as fully paid and non-assessable common shares of the Company.

We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the use of our firm's name in the section of the Registration Statement and the Prospectus included therein entitled "Legal Matters". In giving this consent, we do not admit that we are within the category of persons whose consent is required under Section 7 of the Securities Act, or the rules and regulations of the Commission.

This opinion is furnished in accordance with the requirements of Item 16(a) of Form S-1 and Item 601(b)(5)(i) of Regulation S-K in connection with the filing of the Registration Statement and the Prospectus, and is not to be used, circulated, quoted or otherwise relied upon for any other purpose. This opinion is limited to the specific issues addressed herein, and no opinion may be inferred or implied beyond that expressly stated herein. We disclaim any obligation to advise you of facts, circumstances, events or developments that hereafter may be brought to our attention and that may alter, affect or modify the opinion expressed herein after the effective date of the Registration Statement.

Yours truly, <br>

## Exhibit 10.2

**Exhibit 10.2**

**EMPLOYMENT AGREEMENT**

This Employment Agreement (this "**Agreement**") is entered into as of April<u> </u>, 2022 by and between Icanic Brands Company Inc., a company incorporated pursuant to the *Business Corporations Act* (British Columbia) (the "**Corporation**"), and Micah Anderson, an individual and resident of the State of California (hereinafter called "**Executive**").

<u>W I T N E S S E T H</u>:

**WHEREAS**, this Agreement is entered into in connection with that certain Merger Agreement dated as of January 21, 2022 (the "**Merger Agreement**") by and among the Corporation, LEEF Holdings, Inc., a Nevada corporation (the "**Company**"), Icanic Merger Sub, Inc., a Nevada corporation ("**Subco**"), and Micah Anderson, in his capacity as representative of the Company Stockholders, pursuant to which Subco was merged with and into the Company with the Company surviving as a wholly-owned subsidiary of the Corporation (the "**Merger**");

**WHEREAS**, the Closing (as defined in the Merger Agreement) of the Merger is conditioned upon the execution and delivery of this Agreement; and

**WHEREAS**, the Corporation and/or its Affiliates (as defined below) desires to employ Executive from and after the Closing under the terms of this new Agreement, and Executive is willing to accept such employment on the terms and subject to the conditions hereinafter set forth from and after the Closing.

**NOW, THEREFORE**, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment by Corporation; Location</u>. The Corporation and/or its Affiliates hereby agrees to employ Executive as the Company's full-time Chief Executive Officer. As the Company's Chief Executive Officer, Executive will report to the Corporation's Board of Directors (the "**Board of Directors**"), and shall have such duties consistent with that of a Chief Executive Officer of the Company and/or that may from time to time be designated or assigned to Executive pursuant to the directives of the Board of Directors. Upon mutual agreement of the Corporation and Executive, the Executive's title and/or position may be changed.

Except for travel when and as required in the performance of Executive's duties hereunder, Executive shall perform his duties hereunder from the Company's principal executive offices in San Diego, California. Executive shall not be required to relocate his primary residency to perform his duties under this Agreement. Executive shall only be required to travel to the Corporation's corporate headquarters not more than once a calendar quarter and for any scheduled meetings of the Board of Directors or meetings in which the entire executive team is required.

-1- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Executive's Acceptance of Employment</u>. Executive hereby accepts such employment and agrees that throughout the period of his employment hereunder, he will devote the necessary attention, knowledge and skills, faithfully, diligently and to the best of his ability, in furtherance of the business of the Corporation and companies in which the Corporation owns at least 50% of the entity's voting shares (its "**Affiliates**"), he will perform the duties assigned to him pursuant to <u>Section</u> 1 hereof, subject, at all times, to the direction and control of the Board of Directors, and he will do such reasonable traveling as may be required of him in the performance thereof. Notwithstanding the foregoing, the Corporation acknowledges that Executive currently maintains an ownership interest in the entities identified in Attachment A and that Executive shall be authorized to devote sufficient time to managing those investments provided that (i) such activities in no way interfere with the performance of Executive's duties pursuant to this Agreement, and (ii) Executive will not take on any additional ownership interests in any other cannabis related entities absent disclosure to and approval of the Board of Directors, not to be unreasonably withheld. Notwithstanding the foregoing and for the avoidance of doubt, Executive shall be entitled to receive equity in third-party entities applying for cannabis licenses that utilize Executive's resume from time to time; *provided*, Executive first brings such opportunities to the Corporation.

Executive shall at all times be subject to, observe and carry out such rules, regulations, policies, directions and restrictions as the Corporation shall from time to time establish. Executive agrees that he shall not, without the prior written approval of the Board of Directors, directly or indirectly, accept employment or compensation from or perform services of any nature for, any business enterprise other than the Corporation and its Affiliates, excluding those entities attached on <u>Attachment A</u>. Nothing in this Agreement shall preclude Executive from engaging in appropriate civic, charitable or religious activities or from devoting a reasonable amount of time to private investments, as long as such activities and/or services do not interfere or conflict with his responsibilities or duties to the Corporation as determined by the Board of Directors in its sole reasonable discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term</u>. The term of Executive's employment under this Agreement shall be the period commencing on the Closing Date (as defined in the Merger Agreement) and continuing until the third (3rd) anniversary thereof, unless terminated earlier pursuant to <u>Section</u> 7 (the "**Initial Term**"). At the conclusion of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms (each, a "**Renewal Term**") unless either party gives the other written notice of non-renewal at least ninety (90) days' prior to the end of the Initial Term or a Renewal Term, as the case may be, and subject to earlier termination as provided in <u>Section</u> 7 hereof. As used in this Agreement, the "**Term**" shall mean the Initial Term together with any Renewal Terms, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. <u>Compensation/Bonus/Options/Benefits/Equity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The Corporation will pay to Executive as compensation for his services hereunder an annual base salary (the "**Base Salary**") of Two Hundred Fifty Thousand U.S. Dollars (US$250,000) per annum payable in equal installments in accordance with the Corporation's normal payroll policy, but not less than monthly. The Base Salary shall be reviewed annually by Executive and the Board of Directors may be increased at any time; *provided, however*, that Executive's Base Salary shall not be subject to reduction. Upon any increase to Executive's Base Salary, the then current salary as so increased shall be the "Base Salary" for purposes of this Agreement.

-2- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Commencing with the calendar year ending December 31, 2021, and for each calendar year thereafter while this Agreement is in effect (each, a "**Plan Year**"), Executive shall be eligible for an annual incentive performance bonus (the "**Incentive Bonus**"). The target potential amount of the Incentive Bonus payable to Executive shall be up to 100% of Executive's Base Salary earned during the applicable Plan Year. The Incentive Bonus will be conditioned on the satisfaction of individual and company objectives as set forth below and subject to <u>Section 7</u> of this Agreement, and shall be payable on or before February 15 of the year following the Plan Year. By the end of January of each Plan Year, the Corporation's Board of Directors and/or Compensation Committee of the Board of Directors and Executive shall jointly establish the incentive target objectives that Executive has to meet to earn the Incentive Bonus; *provided, however*, for the initial partial year of this Agreement through December 31, 2021, the targets shall be those as previously determined by the Board of Directors of the Company pursuant to the terms and conditions of Executive's Prior Agreement (as defined below). The payment of any Incentive Bonus pursuant to this <u>Section 4.2</u> shall be made in accordance with the normal payroll practices of the Corporation, less required deductions for state and federal withholding tax, social security and all other employment taxes and authorized payroll deductions, and provided Executive satisfies the conditions for earning the Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Effective upon the Closing, the Corporation shall grant you stock options to purchase up to 7,508,259(as adjusted for stock splits, reclassifications and the like) shares (the "**Option Shares**") of the Company's common stock. The Option Shares shall vest in thirty-six (36) equal monthly installments over the three (3) year period measured from the date of Closing subject to Executive's continuing employment, and such options shall have an expiration date of five (5) years from the date of grant. Additionally, following the Closing, the Executive shall, subject to the approval of the Board of Directors, receive such other grants of Option Shares, restricted stock ("**Restricted Stock**") and/or restricted stock units ("**RSUs**", and together with the Option Shares and Restricted Stock, the "**Equity Awards**") in connection with (a) Executive's individual performance and/or (b) the performance of the Corporation and/or certain operating subsidiaries of the Corporation (including the Company and its subsidiaries), in each case equivalent in amount and value granted to other similar situated executives of the Corporation. All such Equity Awards shall be issued pursuant to, and subject to the terms and conditions of the Corporation's stock option and incentive plan adopted by the shareholders of the Corporation on May 27, 2016, as amended from time to time (the "**Equity Plan**") and an award agreement thereunder (the "**Award Agreement**") to be entered into with the Corporation. The Equity Awards shall vest as set forth in the Award Agreement; *provided*, that to the extent the Corporation grants any Equity Awards to Executive during the Term, then the Corporation shall in such Award Agreement provide that (x) in the event a Change of Control (as defined below) is consummated during the Term, or (y) Executive either (i) is terminated other than for Cause, death or Disability or (ii) resigns for Good Reason (as defined below), then all of Executive's unvested Equity Awards shall automatically and immediately vest in full. Executive shall, subject to the approval of the Board of Directors, participate in a management incentive plan (the "**Management Plan**"). The Management Plan shall allocate stock grants of the Corporation's common shares based on all business acquisitions (whether by merger, asset purchase or stock purchase) completed by the Corporation as well as revenue growth of the Corporation post-closing of any such acquisition transaction. The Management Plan shall also provide for stock grants of the Corporation's common shares to Executive if there is a Change of Control (as defined below) of the Corporation.

-3- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Executive shall be entitled to the Corporation's group medical and dental insurance benefits. At Executive's request, however, in lieu of providing Executive with group medical and dental insurance benefits, the Corporation shall reimburse Executive for the cost of obtaining his own private medical and dental insurance policy, provided that the monthly amount of such insurance premiums shall not exceed Five Thousand Dollars ($5,000) per month. Executive shall also be entitled to a life insurance policy covering his own death with the beneficiary as determined by Executive in his sole discretion in the amount of not less than One Million U.S. Dollars (US$1,000,000) with the Corporation responsible for paying all expenses and premiums of such policy during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 The Corporation recognizes that Executive is required to drive throughout California to fully perform his duties. As such the Corporation agrees to provide Executive with a monthly auto subsidy of One Thousand U.S. Dollars (US$1,000), and shall also reimburse Executive up to Two Thousand U.S. Dollars (US$2,000) for other travel expense, including airfare. Such auto subsidy payments shall be in lieu of any obligation to reimburse Executive for mileage or other driving related expenses, notwithstanding any other policy of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 The Corporation shall issue to Executive and/or to such other employees of the Corporation and its Affiliates as the Executive shall direct, the following performance equity payments (capitalized terms used in this <u>Section</u> 4.6 shall have the meaning ascribed to them in the Merger Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the First Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(a) of the Merger Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Second Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(b) of the Merger Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Third Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(c) of the Merger Agreement.

The Resulting Issuer Common Shares issuable pursuant to this <u>Section 4.6</u> may be issued as Equity Awards under the Equity Plan; *provided*, that such Resulting Issuer Common Shares so issued under the Equity Plan shall be fully vested upon issuance and shall not be subject to vesting or any other condition of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Business Expenses</u>. For business travel related to Executive's duties, the Corporation shall reimburse Executive for all out-of-pocket expenses reasonably incurred by him in accordance with the Corporation's travel and entertainment policy and procedures and any amendment thereof that the Corporation may adopt during his employment. Executive shall be authorized to fly Business Class or First Class for any air travel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Vacation</u>. Executive shall be entitled to vacation in accordance with the Corporation's vacation policy as in effect from time to time; provided that Executive shall be entitled to no less than a minimum amount of six (6) weeks per year.

-4- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Termination by the Corporation for Cause</u>. The Corporation may terminate Executive's employment immediately at any time and without notice for "Cause", subject to any applicable notice and cure period. For purposes of this Agreement, "**Cause**" shall mean (a) a material breach by Executive of his obligations under this Agreement that is not cured within thirty (30) days following receipt of written notice thereof from the Corporation's Board of Directors; (b) Executive's theft or knowing falsification of any Corporation documents or records; (c) Executive's conviction (including any plea of guilty or nolo contendere) of any felony or other misdemeanor (excepting in each case any conviction or plea relating to any charge associated with state or federal laws relating to cannabis, hemp, psychedelics and/or money laundering or tax fraud from related activities) that involves theft, fraud or an act of dishonesty; (d) Executive's repeated failure to perform his duties on behalf of the Corporation in a competent and diligent manner, which such failure causes material financial harm to the Corporation, if such failure is not cured within thirty (30) days following receipt of written notice thereof from the Corporation's Board of Directors. Any notice of termination required under this <u>Section 7.1</u> shall identify the events or conduct constituting the grounds for termination with sufficient specificity so as to enable Executive to take steps to cure such default as permitted. In the event Executive's employment is terminated in accordance with this <u>Section 7.1</u>, Executive shall be entitled to receive only the Base Salary through the effective date of termination, plus payment for any expenses that may be due hereunder through the effective date of termination, plus any other amounts required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Termination Without Cause By The Corporation/By the Executive for Good Reason/By the Corporation - Separation Package</u>. In the event that at any time (a) the Corporation terminates Executive's employment under this Agreement without Cause (as defined above) or (b) Executive terminates his employment for Good Reason, Executive will receive all Base Salary and Incentive Bonus amounts payable through the effective date of termination plus (A) a lump sum cash severance payment equal to twenty-four (24) months of his Base Salary then in effect, plus (B) a lump sum cash severance payment for a prorated portion of any Incentive Bonus for which Executive was eligible during the Plan Year in which the termination occurs, provided that the relevant milestones have been achieved on a pro rata basis for the relevant period, plus (C) payment for any expenses that may be due hereunder through the effective date of termination, plus (D) any other amounts required by applicable law. In addition, all Equity Awards granted shall fully accelerate and vest. For the purposes of this Agreement, the term "**Good Reason**" shall mean (i) any material reduction in Executive's annual Base Salary, bonus potential or overall compensation, (ii) Executive's position, authority, or duties are materially reduced, (iii) Executive's assigned work location is moved to a location more than 50 miles from San Diego, California, or (iv) the Corporation materially breaches the provisions of this Agreement and fails to cure such breach within thirty (30) days following receipt of written notice thereof from Executive. Executive shall not be entitled to any portion of the Separation Package described in this <u>Section</u> 7.2 unless Executive first executes, and does not revoke as may be allowed by law, a complete release of all claims in favor of the Corporation, its employees, officers, and agents, in form chosen by the Corporation in its reasonable discretion.

-5- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Termination by the Corporation for Disability or upon Death</u>. This Agreement shall automatically terminate upon the death of Executive. In addition, this Agreement may be terminated by the Corporation upon Executive's Disability. For the purposes of this Agreement, the term "**Disability**" shall mean Executive's failure to substantially perform his duties hereunder for either three (3) consecutive months or an aggregate of 120 days in any rolling twelve (12) month period, as determined by the Board acting in good faith, and after making reasonable accommodations and complying with all requirements of the Americans with Disabilities Act and any state law equivalent legislation. Any questions as to the existence, extent or potentiality of illness or incapacity of Executive upon which the Corporation and Executive cannot agree shall be determined by a qualified independent physician selected by Executive, a physician selected by the Corporation's Board of Directors, and a third physician selected by the other two physicians. The determination of such physicians certified in writing to Executive and to the Corporation shall be final and conclusive for all purposes of this Agreement. In the event Executive's employment is terminated in accordance with this <u>Section 7.3</u>, Executive shall be entitled to receive (a) the Base Salary through the effective date of termination, plus (b) payment for any expenses that may be due hereunder through the effective date of termination, plus (c) a lump sum cash severance payment for a prorated portion of any Incentive Bonus for which Executive was eligible during the Plan Year in which the termination occurs, provided that the relevant milestones have been achieved on a pro rata basis for the relevant period, plus (d) any other amounts required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Termination Upon a Change of Control</u>. For purposes of this Agreement, "**Change of Control**" shall mean: (1) a merger or consolidation or the sale or exchange by the stockholders of the Corporation of all or substantially all of the capital stock of the Corporation, where the stockholders of the Corporation immediately before such transaction do not obtain or retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock or other voting equity of the surviving or acquiring corporation or other surviving or acquiring entity, in substantially the same proportion as before such transaction; (2) any transaction or series of related transactions to which the Corporation is a party in which in excess of fifty percent (50%) of the Corporation's voting power is transferred; or (3) the sale or exchange of all or substantially all of the Corporation's assets (other than a sale or transfer to a subsidiary of the Corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the "**Code**")), where the stockholders of the Corporation immediately before such sale or exchange do not obtain or retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock or other voting equity of the corporation or other entity acquiring the Corporation's assets, in substantially the same proportion as before such transaction; *provided, however*, that a Change of Control shall not be deemed to have occurred pursuant to any transaction or series of transactions relating to a public or private financing or re-financing, the principal purpose of which is to raise money for the Corporation's working capital or capital expenditures and which does not result in a change in a majority of the members of the Board of Directors. Immediately preceding a Change of Control, any then unvested portion of the Option will become fully vested. If, within three (3) months immediately preceding a Change of Control or within six (6) months immediately following a Change of Control, the Executive's employment is terminated by the Corporation for any reason other than Cause or because of a Disability, then the Executive shall be entitled to receive each of the payments, accelerated vesting and other benefits provided in <u>Section 7.2</u> above.

-6- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Resignation</u>. In the event that Executive resigns or otherwise terminates this Agreement, other than for Good Reason, Executive will only be entitled to receive Executive's Base Salary earned up to the date of termination and all Option Shares and other Equity Awards that have vested up to and including such date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Duty of Loyalty</u>. In consideration of the Corporation entering into this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Executive agrees that during the Term of this Agreement he will not directly or indirectly own, manage, operate, join, control, participate in, perform any services for, invest in, or otherwise be connected with, in any manner, whether as an officer, director, employee, consultant, partner, investor or otherwise, any business entity which is engaged in any business in which the Corporation or any of its Affiliates is currently engaged or is engaged at the termination of this Agreement, *provided however* that nothing in this <u>Section 8.1</u> shall be deemed to prohibit Executive (a) from managing the businesses or his investments identified on <u>Attachment A</u> or (ii) investing his funds in securities of a company if the securities of such company are listed for trading on a national stock exchange or traded in the over-the-counter market and Executive's holdings therein represent less than five percent (5%) of the total number of shares or principal amount of other securities of such company outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Executive agrees that Executive will not, during the Term, and during the one (1) year period following the termination of the Executive's employment, directly or indirectly, by action alone or in concert with others, induce or influence, or seek to induce or influence any person who is engaged by the Corporation or any of its Affiliates as an employee, agent, independent contractor or otherwise, to terminate his employment or engagement, nor shall Executive, directly or indirectly, through any other person, firm or corporation, employ or engage, or solicit for employment or engagement, or advise or recommend to any other person or entity that such person or entity employ or engage or solicit for employment or engagement, any person or entity employed or engaged by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Confidentiality Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 As used herein, the term "**Confidential Information**" shall mean any and all information of the Corporation and of its Affiliates (for purposes of <u>Sections 9, 10</u> and <u>11</u> of this Agreement, the Corporation's Affiliates shall be deemed included within the meaning of "**Corporation**"), including, but not limited to, all data, compilations, programs, devices, strategies, or methods concerning or related to (a) the Corporation's finances, financial condition, results of operations, employee relations, amounts of compensation paid to officers and employees and any other data or information relating to the internal affairs of the Corporation and its operations; (b) the terms and conditions (including prices) of sales and offers of sales of the Corporation's products and services; (c) the terms, conditions and current status of the Corporation's agreements and relationship with any customer or supplier; (d) the customer and supplier lists and the identities and business preferences of the Corporation's actual and prospective customers and suppliers or any employee or agent thereof with whom the Corporation communicates; (e) the trade secrets, manufacturing and operating techniques, price data, costs, methods, systems, plans, procedures, formulas, processes, hardware, software, machines, inventions, designs, drawings, artwork, blueprints, specifications, and strategic plans possessed, developed, accumulated or acquired by the Corporation; (f) any communications between the Corporation, its officers, directors, shareholders, or employees, and any attorney retained by the Corporation for any purpose, or any person retained or employed by such attorney for the purpose of assisting such attorney in his or her representation of the Corporation; (g) any other non-public information and knowledge with respect to the Corporation's products, whether developed or in any stage of development by the Corporation; (h) the abilities and specialized training or experience of others who as employees or consultants of the Corporation during the Executive's employment have engaged in the design or development of any such products; and (i) any other matter or thing, whether or not recorded on any medium, (x) by which the Corporation derives actual or potential economic value from such matter or thing being not generally known to other persons or entities who might obtain economic value from its disclosure or use, or (y) which gives the Corporation an opportunity to obtain an advantage over its competitors who do not know or use the same.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Executive acknowledges and agrees that the Corporation is engaged in a highly competitive business and has expended, or will expend, significant sums of money and has invested, or will invest, a substantial amount of time to develop and maintain the secrecy of the Confidential Information. The Corporation has thus obtained, or will obtain, a valuable economic asset which has enabled, or will enable, it to develop an extensive reputation and to establish long-term business relationships with its suppliers and customers. If such Confidential Information were disclosed to another person or entity or used for the benefit of anyone other than the Corporation, the Corporation would suffer irreparable harm, loss and damage. Accordingly, Executive acknowledges and agrees that, unless the Confidential Information becomes publicly known through legitimate origins not involving an act or omission by Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Confidential Information is, and at all times hereafter shall remain, the sole property of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive shall use his best efforts and the utmost diligence to guard and protect the Confidential Information from disclosure to any competitor, customer or supplier of the Corporation or any other person, firm, corporation or other entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) unless the Corporation gives Executive prior express written permission, during his employment and thereafter, Executive shall not use for his own benefit, or divulge to any competitor or customer or any other person, firm, corporation, or other entity, any of the Confidential Information which Executive may obtain, learn about, develop or be entrusted with as a result of Executive's employment by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 Executive also acknowledges and agrees that all documentary and tangible Confidential Information including, without limitation, such Confidential Information as Executive has committed to memory, is supplied or made available by the Corporation to the Executive solely to assist him in performing his services under this Agreement. Executive further agrees that after his employment with the Corporation is terminated for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive shall not remove from the property of the Corporation and shall immediately return to the Corporation, all documentary or tangible Confidential Information in his possession, custody, or control and not make or keep any copies, notes, abstracts, summaries or other record of any type of Confidential Information; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive shall immediately return to the Corporation any and all other property of the Corporation in his possession, custody or control, including, without limitation, any and all keys, security cards, passes, credit cards and marketing literature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Execute understands that nothing in this Agreement prohibits Executive from reporting to any governmental authority information concerning possible violations of law or regulation and that Executive may disclose Confidential Information to a government official or to an attorney and use it in certain court proceedings without fear of prosecution or liability, provided Executive files any document containing Confidential Information under seal and does not disclose the Confidential Information, except pursuant to court order.

-9- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Remedies</u>. Executive acknowledges and agrees that the business of the Corporation is highly competitive and that the provisions of <u>Sections 8, 9</u> and <u>10</u> are reasonable and necessary for the protection of the Corporation and that any violation of such covenants would cause immediate, immeasurable and irreparable harm, loss and damage to the Corporation not adequately compensable by a monetary award. Accordingly, Executive agrees without limiting any of the other remedies available to the Corporation, that any violation of said covenants, or any one of them, may be enjoined or restrained by any court of competent jurisdiction, and that any temporary restraining order or emergency, preliminary or final injunctions may be issued by any court of competent jurisdiction, without notice and without bond. In the event any proceedings are commenced by the Corporation against Executive for any actual or threatened violation of any of said covenants and if the Corporation prevails in such litigation, then, Executive shall be liable to the Corporation for, and shall pay to the Corporation, all costs and expenses of any kind, including reasonable attorneys' fees, which the Corporation may incur in connection with such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement of the parties hereto with respect to the matters set forth herein and no amendment or modification hereof shall be valid or binding unless made in writing and signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. Any notice, required, permitted or desired to be given pursuant to any of the provisions of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered in person or sent by certified mail, return receipt requested, postage and fees prepaid as follows:

if to the Corporation at:

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attn: Brandon Kou

and, if to Executive:

Micah Anderson

2752 Carriagedale Row

La Jolla, CA 92037

Either of the parties hereto may at any time and from time to time change the address to which notice shall be sent hereunder by notice to the other party given as provided herein. The date of the giving of any notice hereunder shall be the date delivered or if sent by mail, shall be the date of the posting of the mail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Non-Assignability</u>. Neither this Agreement nor the right to receive any payments hereunder may be assigned by Executive except as may be permitted by the laws of decent or distribution in the event of Executive's death or disability. This Agreement shall be binding upon Executive and inure to the benefit of his heirs, executors and administrators and be binding upon the Corporation and inure to the benefit of its successors and assigns.

-10- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Choice of Law And Forum</u>. This Agreement shall be governed, interpreted and construed under the laws of the State of California without regard to its conflict of law principles. The parties agree that any dispute or litigation arising in whole or in part hereunder shall only be litigated in any state or Federal court of competent subject matter jurisdiction sitting in San Diego County, California, to the jurisdiction of which and venue in which each party irrevocably consents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Waiver</u>. No course of dealing nor any delay on the part of any party in exercising any rights hereunder shall operate as a waiver of any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver or a waiver of any other breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Severability</u>. If any provision of this Agreement, including any paragraph, sentence, clause or part thereof, shall be deemed contrary to law or invalid or unenforceable in any respect by a court of competent jurisdiction, the remaining provisions of such paragraph, sentence, clause or part thereof shall not be affected, but shall, subject to the discretion of such court, remain in full force and effect and any invalid and unenforceable provisions shall be deemed, without further action on the part of the parties hereto, modified, amended and limited to the extent necessary to render the same valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in counterparts (by physical or electronic means, including DocuSign), each of which shall be deemed an original and together shall constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Survival at Termination</u>. The termination of this Agreement or Executive's employment hereunder shall not affect either party's obligations under this Agreement which by the nature thereof are intended to survive any such termination including, without limitation, Executive's obligations under <u>Sections 8, 9</u> and <u>10</u>.

**[Signature Page to Follow]**

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed effective as of the date first above set forth.

---

| |
|:---|
| CORPORATION: |
| ICANIC BRANDS COMPANY INC. |
| By: |
| Name: |
| Title: |
| EXECUTIVE: |
| */s/ Micah Anderson* |
| Micah Anderson |

---

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**<u>Attachment A</u>**

● 33 Holdings

● Anderson Dev SB

● ADSB Management

● Anderson Dev Holdings SJ

● Anderson Development SJ

● Anderson Development Willits

● Little Ry Holding

● Lower Thomas Road

● LTR Realty

● MPA Farms, Inc

● MPA Legacy Holdings Inc

● Sunset Ridge Road

● Orr Springs Road

● Orr Springs Land Road

● Chula Vista 2

● Willowbrook Realestate

● Willits Retail

● Adere, LLC

● Hilife Group NC, LLC

-13- Initial ____

## Exhibit 10.3

**Exhibit 10.3**

**Employment Agreement**

This Employment Agreement (the "**Agreement**") is made and entered into as of March 6, 2025, by and between KEVIN WILSON (the "**Executive**") and LEEF BRANDS, INC., a Canadian corporation doing business as "LEEF" (the "**Company**").

WHEREAS, the Company desires to employ the Executive on the terms and conditions set forth herein; and

WHEREAS, the Executive desires to be employed by the Company on such terms and conditions.

NOW, THEREFORE, in consideration of the mutual covenants, promises, and obligations set forth herein, the parties agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Term</u>. Subject to Section 5 of this Agreement, the Executive's initial term of employment hereunder shall be from the period beginning on December 1, 2024 (the "Effective Date") through December 1, 2026 (the "Initial Term"). Thereafter, the Agreement shall be deemed to be automatically extended, upon the same terms and conditions, for successive periods of one year, unless either party provides written notice of its intention not to extend the term at least 30 days prior to the end of the Initial Term or one-year extension thereof. The period during which the Executive is employed by the Company hereunder is hereinafter referred to as the "Employment Term."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Position and Duties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Position</u>. During the Employment Term, the Executive shall serve as the Chief Financial Officer of the Company, reporting to the Chief Executive Officer. In such position, the Executive shall have such duties, authority, and responsibilities as are consistent with the Executive's position. Executive's specific duties are included in Attachment A – Job Description.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Duties</u>. During the Employment Term, the Executive shall devote substantially all of his/her business time and attention to the performance of the Executive's duties hereunder and will not engage in any other business, profession, or occupation for compensation or otherwise which would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Place of Performance</u>. The principal place of Executive's employment shall be the Company's principal executive office currently located in Toronto, Ontario, Canada; provided that, the Executive shall be required to travel on Company business during the Employment Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Base Salary</u>. The Company shall pay the Executive an annual rate of base salary of $250,000.00 USD in periodic installments in accordance with the Company's customary payroll practices and applicable wage payment laws, but no less frequently than monthly. The Executive's base salary shall be reviewed at least annually by the Board and the Board may increase but not decrease the Executive's base salary during the Employment Term. The Executive's annual base salary, as in effect from time to time, is hereinafter referred to as "**Base Salary.**"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Deferred Compensation – Employee agrees to defer $75,000.00 USD in annual compensation to be paid during 2025. Timing of the payment will be at the Boards sole discretion. Deferred Compensation is deemed to be earned as accrued on a normal payroll basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Equity Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With respect to each calendar year of the Company ending during the Employment Term, the Executive shall be eligible to receive an annual long-term incentive award. All terms and conditions applicable to each such award shall be determined by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the generality of Section 4.2(a), in consideration of the Executive entering into this Agreement, the Company will grant the following equity awards to the Executive pursuant to the LEEF STOCK OPTION PLAN: Executive shall receive Stock Options in the amount of $150,000.00 USD, which shall vest as follows; See Attachment B – Stock Option Vesting Schedule. All other terms and conditions of such awards shall be governed by the terms and conditions of the LEEF STOCK OPTION PLAN and the applicable award agreements. All terms and conditions applicable to each such award shall be determined by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Executive agrees to convert any existing Stock Options to Restricted Stock Units ("RSUs") pursuant to this Agreement and the LEEF RESTRICTED STOCK OPTION PLAN.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Fringe Benefits and Perquisites</u>. During the Employment Term, the Executive shall be entitled to fringe benefits and perquisites consistent with those provided to similarly situated executives of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Employee Benefits</u>. During the Employment Term, the Executive shall be entitled to participate in all employee benefit plans, practices, and programs maintained by the Company, as in effect from time to time (collectively, "**Employee Benefit Plans**"), on a basis which is no less favorable than is provided to other similarly situated executives of the Company, to the extent consistent with applicable law and the terms of the applicable Employee Benefit Plans. The Company reserves the right to amend or terminate any Employee Benefit Plans at any time in its sole discretion, subject to the terms of such Employee Benefit Plan and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 <u>Vacation; Paid Time Off</u>. During the Employment Term, the Executive shall be entitled to three (3) weeks of paid vacation days per calendar year (prorated for partial years) in accordance with the Company's vacation policies, as in effect from time to time. The Executive shall receive other paid time off in accordance with the Company's policies for executive officers as such policies may exist from time to time and as required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 <u>Business Expenses</u>. The Executive shall be entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment, and travel expenses incurred by the Executive in connection with the performance of the Executive's duties hereunder in accordance with the Company's expense reimbursement policies and procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 <u>Indemnification</u>. The Company shall indemnify and hold the Executive harmless to the maximum extent permitted under applicable law and the Company's bylaws for acts and omissions in the Executive's capacity as an officer, director, or employee of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Termination of Employment</u>. The Employment Term and the Executive's employment hereunder may be terminated by either the Company or the Executive at any time and for any reason or for no particular reason; provided that, unless otherwise provided herein, either party shall be required to give the other party at least sixty (60) days advance written notice of any termination of the Executive's employment. Upon termination of the Executive's employment during the Employment Term, the Executive shall be entitled to the compensation and benefits described in this Section 5 and shall have no further rights to any compensation or any other benefits from the Company or any of its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Expiration of the Term, For Cause, or Without Good Reason</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Executive's employment hereunder may be terminated upon either party's failure to renew the Agreement in accordance with Section 1, by the Company for Cause, or by the Executive without Good Reason and the Executive shall be entitled to receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any accrued but unpaid Base Salary and accrued but unused vacation which shall be paid on the pay date immediately following the date of the Executive's termination in accordance with the Company's customary payroll procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) reimbursement for unreimbursed business expenses properly incurred by the Executive, which shall be subject to and paid in accordance with the Company's expense reimbursement policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) such employee benefits (including equity compensation), if any, to which the Executive may be entitled under the Company's employee benefit plans as of the date of the Executive's termination; provided that, in no event shall the Executive be entitled to any payments in the nature of severance or termination payments except as specifically provided herein.

Items 5.1(a)(i) through 5.1(a)(iii) are referred to herein collectively as the "**Accrued Amounts**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of this Agreement, "**Cause**" shall mean:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Executive's willful failure to perform his/her duties (other than any such failure resulting from incapacity due to physical or mental illness);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Executive's willful failure to comply with any valid and legal directive of the Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Executive's willful engagement in dishonesty, illegal conduct, or misconduct, which is, in each case, injurious to the Company or its affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Executive's embezzlement, misappropriation, or fraud, whether or not related to the Executive's employment with the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Executive's material violation of the Company's written policies or codes of conduct, including written policies related to discrimination, harassment, performance of illegal or unethical activities, and ethical misconduct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) the Executive's material breach of any material obligation under this Agreement or any other written agreement between the Executive and the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the Executive's engagement in conduct that brings or is reasonably likely to bring the Company negative publicity or into public disgrace, embarrassment, or disrepute.

For purposes of this provision, none of the Executive's acts or failures to act shall be considered "willful" unless the Executive acts, or fails to act, in bad faith or without reasonable belief that the action or failure to act was in the best interests of the Company. The Executive's actions, or failures to act, based upon authority given pursuant to a resolution duly adopted by the Board or upon the advice of counsel for the Company shall be conclusively presumed to be in good faith and in the best interests of the Company. For the avoidance of doubt, Executive's involvement in any cannabis or hemp-related activities shall not constitute "cause" under this Agreement.

Except for a failure, breach, or refusal which, by its nature, cannot reasonably be expected to be cured, the Executive shall have 10 business days from the delivery of written notice by the Company within which to cure any acts constituting Cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of this Agreement, "**Good Reason**" shall mean the occurrence of any of the following, in each case during the Employment Term without the Executive's prior written consent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reduction in the Executive's Base Salary other than a general reduction in Base Salary that affects all similarly situated executives in substantially the same proportions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any material breach by the Company of any material provision of this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company's failure to obtain an agreement from any successor to the Company to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no succession had taken place, except where such assumption occurs by operation of law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a material, adverse change in the Executive's authority, duties, or responsibilities (other than temporarily while the Executive is physically or mentally incapacitated or as required by applicable law); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) a material adverse change in the reporting structure applicable to the Executive.

To terminate his/her employment for Good Reason, the Executive must provide written notice to the Company of the existence of the circumstances providing grounds for termination for Good Reason within 10 days of the initial existence of such grounds and the Company must have at least 10 days from the date on which such notice is provided to cure such circumstances. If the Executive does not terminate his/her employment for Good Reason within 20 days after the first occurrence of the applicable grounds, then the Executive will be deemed to have waived his/her right to terminate for Good Reason with respect to such grounds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Termination Without Cause or for Good Reason</u>. The Employment Term and the Executive's employment hereunder may be terminated by the Executive for Good Reason or by the Company without Cause. In the event of such termination, the Executive shall be entitled to receive the Accrued Amounts and subject to the Executive's compliance with Section 6 of this Agreement and his/her execution, within 21 days following receipt, of a release of claims in favor of the Company, its affiliates and their respective officers and directors in a form provided by the Company (the "**Release**") (such 21-day period, the "**Release Execution Period**"), and the Release becoming effective according to its terms, the Executive shall be entitled to receive the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) equal installment payments payable in accordance with the Company's normal payroll practices, but no less frequently than monthly, which are in the aggregate equal to one (1) times the Executive's Base Salary for the year that includes the date of the Executive's termination, which shall begin within 14 days following the date of the Executive's termination; provided that, the first installment payment shall include all amounts that would otherwise have been paid to the Executive during the period beginning on the date of the Executive's termination and ending on the first payment date if no delay had been imposed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding the terms of the LEEF STOCK OPTION PLAN or any applicable award agreements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all outstanding equity-based compensation awards shall become fully vested and the restrictions thereon shall lapse; provided that, any delays in the settlement or payment of such awards that are set forth in the applicable award agreement and that are required under Section 409A ("**Section 409A**") of the Internal Revenue Code of 1986, as amended (the "**Code**") shall remain in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Executive's employment hereunder shall terminate automatically upon the Executive's death during the Employment Term, and the Company may terminate the Executive's employment on account of the Executive's Disability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Executive's employment is terminated during the Employment Term on account of the Executive's death or Disability, the Executive (or the Executive's estate and/or beneficiaries, as the case may be) shall be entitled to receive the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) the Accrued Amounts

Notwithstanding any other provision contained herein, all payments made in connection with the Executive's Disability shall be provided in a manner which is consistent with federal and state law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of this Agreement, "**Disability**" shall mean the Executive's inability, due to physical or mental incapacity, to perform the essential functions of his/her job, with or without reasonable accommodation, for one hundred twenty (120) consecutive days. Any question as to the existence of the Executive's Disability as to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the Company. The determination of Disability made in writing to the Company and the Executive shall be final and conclusive for all purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4 <u>Notice of Termination</u>. Any termination of the Executive's employment hereunder by the Company or by the Executive during the Employment Term (other than termination pursuant to Section 5.3(a) on account of the Executive's death) shall be communicated by written notice of termination ("**Notice of Termination**") to the other party hereto in accordance with Section 16. The Notice of Termination shall specify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the termination provision of this Agreement relied upon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive's employment under the provision so indicated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the applicable date of termination, which shall be no less than 14 days following the date on which the Notice of Termination is delivered if the Company terminates the Executive's employment without Cause, or no less than 14 days following the date on which the Notice of Termination is delivered if the Executive terminates his/her employment with or without Good Reason.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5 <u>Resignation of All Other Positions</u>. Upon termination of the Executive's employment hereunder for any reason, the Executive shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the Board (or a committee thereof) of the Company or any of its affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Confidential Information and Restrictive Covenants</u>. As a condition of the Executive's employment with the Company, the Executive shall enter into and abide by the Company's Confidentiality Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Arbitration</u>. Any dispute, controversy, or claim arising out of or related to the Executive's employment by the Company, or termination of employment, including but not limited to claims arising under or related to this Agreement or any breach of this Agreement, and any alleged violation of federal, state, or local statute, regulation, common law, or public policy, shall be submitted to and decided by binding arbitration. Arbitration shall be administered exclusively by American Arbitration Association ("AAA") and shall be conducted in San Diego, California consistent with the rules of AAA in effect at the time the arbitration is commenced, except as modified by this Agreement. The Parties waive all rights to have their disputes heard or decided by a jury or in a court trial and the right to pursue any class or collective action or representative claims against each other in court, arbitration, or any other proceeding. Any arbitral award determination shall be final and binding upon the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Governing Law, Jurisdiction, and Venue</u>. This Agreement, for all purposes, shall be construed in accordance with the laws of California without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this Agreement shall be brought only in a state or federal court located in the state of California, County of San Diego. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive the defense of inconvenient forum to the maintenance of any such action or proceeding in such venue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Entire Agreement</u>. Unless specifically provided herein, this Agreement, together with the Employee Confidentiality and Proprietary Rights Agreement, contains all of the understandings and representations between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Modification and Waiver</u>. No provision of this Agreement may be amended or modified unless such amendment or modification is agreed to in writing and signed by the Executive and by the Chief Executive Officer of the Company. No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Severability</u>. Should any provisions of this Agreement be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions hereof, and if such provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had not been set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Captions</u>. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision of this Agreement is to be construed by reference to the caption or heading of any section or paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Counterparts</u>. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Section 409A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <u>General Compliance</u>. This Agreement is intended to comply with Section 409A or an exemption thereunder and shall be construed and administered in accordance with such intent. Notwithstanding any other provision of this Agreement, payments provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption. Any nonqualified deferred compensation payments under this Agreement that may be excluded from Section 409A either as separation pay due to an involuntary separation from service or as a short-term deferral shall be excluded from Section 409A to the maximum extent possible. For purposes of Section 409A, each installment payment provided under this Agreement shall be treated as a separate payment. Any payments to be made under this Agreement upon a termination of employment shall only be made upon a "separation from service" under Section 409A. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A, and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses that may be incurred by the Executive on account of non-compliance with Section 409A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 <u>Specified Employees</u>. Notwithstanding any other provision of this Agreement, if any payment or benefit provided to the Executive in connection with [his/her] termination of employment is determined to constitute "nonqualified deferred compensation" within the meaning of Section 409A and the Executive is determined to be a "specified employee" as defined in Section 409A(a)(2)(b)(i), then such payment or benefit shall not be paid until the first payroll date to occur following the six-month anniversary of the date of the Executive's termination or, if earlier, on the Executive's death (the "**Specified Employee Payment Date**"). The aggregate of any payments that would otherwise have been paid before the Specified Employee Payment Date [and interest on such amounts calculated based on the applicable federal rate published by the Internal Revenue Service for the month in which the Executive's separation from service occurs] shall be paid to the Executive in a lump sum on the Specified Employee Payment Date and thereafter, any remaining payments shall be paid without delay in accordance with their original schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 <u>Reimbursements</u>. To the extent required by Section 409A, each reimbursement or in-kind benefit provided under this Agreement shall be provided in accordance with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during each calendar year cannot affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any reimbursement of an eligible expense shall be paid to the Executive on or before the last day of the calendar year following the calendar year in which the expense was incurred; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any right to reimbursements or in-kind benefits under this Agreement shall not be subject to liquidation or exchange for another benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Successors and Assigns</u>. This Agreement is personal to the Executive and shall not be assigned by the Executive. Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger, consolidation, or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Notice</u>. Notices and all other communications provided for in this Agreement shall be given in writing by personal delivery, electronic delivery, or by registered mail to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice):

If to the Company:

LEEF BRANDS, INC.

175 N. Lenore Avenue

Willits, CA 95490

Attn: Micah Anderson, CEO

With a copy to:

Law Offices of Lance Rogers

768 13<sup>th</sup> Street, #101

Imperial Beach, CA 91932

Attn: Lance Rogers, Esq.

If to the Executive:

KEVIN WILSON

56 Mary Chapman Blvd.

Toronto, Ontario, Canada

M9M 0B2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Representations of the Executive</u>. The Executive represents and warrants to the Company that:

The Executive's acceptance of employment with the Company and the performance of his/her duties hereunder will not conflict with or result in a violation of, a breach of, or a default under any contract, agreement, or understanding to which he/she is a party or is otherwise bound.

The Executive's acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation, non-competition, or other similar covenant or agreement of a prior employer or third-party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Withholding</u>. The Company shall have the right to withhold from any amount payable hereunder any Federal, state, and local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Survival</u>. Upon the expiration or other termination of this Agreement, the respective rights and obligations of the parties hereto shall survive such expiration or other termination to the extent necessary to carry out the intentions of the parties under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Acknowledgement of Full Understanding</u>. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE/SHE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE/SHE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN ATTORNEY OF HIS/HER CHOICE BEFORE SIGNING THIS AGREEMENT.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

---

| | |
|:---|:---|
| LEEF BRANDS, INC. | LEEF BRANDS, INC. |
| By | */s/ Micah Anderson* |
| Name: | Micah Anderson |
| Title: | CEO |

---

---

| | |
|:---|:---|
| EXECUTIVE | EXECUTIVE |
| Signature: | */s/ Kevin Wilson* |
| Print Name: | Kevin Wilson |

---

**Attachment A**

**JOB DESCRIPTION**

**Attachment B**

**STOCK OPTION VESTING SCHEDULE**

The vesting period shall be 12 months, with the vested amount unlocking evenly on an annual basis.

## Exhibit 10.4

**Exhibit 10.4**

![](s_001.jpg)

**LEEF - ICANIC**

**JANUARY 21, 2022**

![](s_001.jpg)

**LEEF - ICANIC**

---

| | |
|:---|:---|
| **Party Name** | **Party Name Abbreviation** |
| LEEF Holdings, Inc. | "**Company**" |
| Endeavor Trust Corporation | "**Depositary**" |
| Endeavor Trust Corporation | "**Escrow Agent**" |
| Icanic Brands Company Inc. | "**Purchaser**" |
| Icanic Merger Sub, Inc. | "**Subco**" |
| Jackson Tidus, a Law Corporation, US legal counsel to Company | "**JT**" |
| Cassels Brock & Blackwell LLP, Canadian legal counsel to Company | "**CBB**" |
| Bayline Capital, financial advisor to the Company | "**BC**" |
| McMillan LLP, legal counsel to Purchaser | "**McM**" |
| Micah Anderson | "**Representative**" |
| Micah Anderson, Emily Heitman and Bryon James [other] | "**Company Key Personnel**" |
| Mark Smith, Nishal Kumar, Suhas Patel, Brandon Kou, Chris Cherry, Ripal Patel | "**Purchaser Key Personnel**" |

---

**Capitalized terms used and not defined herein have the meanings given them in the Merger Agreement among the Purchaser, the Company, Subco, and the Representative dated January 21, 2022.**

INDEX

DOCUMENTS

**A.** **PRE- CLOSING MATTERS** 

1. Merger
 Agreement

2. Company
 Disclosure Letter

3. Purchaser
 Disclosure Letter

4. Option
 Agreement

5. Side
 Letter Agreement – Lock-Up

6. Promissory
 Note

7. Company
 Authorizing Board Resolution

8. Company
 Extension Agreement

9. News
 Release Announcing Transaction

**B.** **CLOSING MATTERS** 

10. Company
 Capitalization Spreadsheet

11. Information
 Statement

12. Referred
 Revenue Schedule

13. Company
 Investments Reorganization

14. Updated
 Company Disclosure Letter

15. Company
 Stockholder Approval

16. Drag-Along
 Notice

17. Accredited
 Investor Questionnaires

18. Employment
 Agreement for Micah Anderson

19. Lock-Up
 Agreement from each Company Key Personnel

20. Officers'
 Certificate pursuant to Section 9.2(a) and (b) of the Merger Agreement

21. Good
 Standing Certificate from Nevada

22. Pre-filing
 Articles of Merger in Nevada

23. Articles
 of Merger

24. Waiver
 re: US$3 Million Cash Balance Condition Precedent

25. Initial
 CSE Form 10

26. Material
 Change Report for the Transaction

27. Updated
 Purchaser Disclosure Letter

28. Lock-Up
 Agreement from each Purchaser Key Personnel

29. Purchaser's
 Officers' Certificate pursuant to Section 9.3(b) of the Merger Agreement

30. Subco's
 Officers' Certificate pursuant to Section 9.3(c) of the Merger Agreement

31. Purchaser's
 Officers' Certificate pursuant to Section 9.3(f) of the Merger Agreement

32. Financial
 Certificate pursuant to Section 9.3(k) of the Merger Agreement

33. Purchaser
 Good Standing Certificate

34. Subco
 Good Standing Certificate

35. Supplemental
 Indenture

36. News
 Release Announcing Closing of the Transaction

**C.** **DEPOSITARY MATTERS** 

37. Letter
 of Transmittal

38. Depositary
 Agreement among the Depositary, the Company and the Purchaser

39. Treasury
 Direction of Purchaser with Respect to the Issuance of the Payment Shares Registered in Trust to the Depositary

**D.** **CONDITIONAL PURCHASE AGREEMENT ESCROW MATTERS** 

40. Escrow
 Agreement

41. Share
 Certificates of Kamaldeep Thindal and Jagdish Thindal

**MERGER AGREEMENT**

Made as of Between

**ICANIC BRANDS COMPANY INC.**

(the "**Purchaser**")

and

**LEEF HOLDINGS, INC.**

(the "**Company**")

and

**ICANIC MERGER SUB, INC.**

("**Subco**")

and

**MICAH ANDERSON**

(the "**Stockholders Representative**")

MERGER AGREEMENT

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| ARTICLE 1 DEFINITIONS | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.1 Definitions | 1 |
| ARTICLE 2 ACQUISITION | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.1 Agreement to Merge | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.2 Merger Events | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.3 Payment of Consideration and Exchange Procedures | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.4 Legending of Payment Shares | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.5 Merged Corporation | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.6 Fractional Shares | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.7 Dissenting Shares | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.8 Effect of Merger | 15 |
| &nbsp;&nbsp;&nbsp;Section 2.9 Filing of Articles of Merger. | 15 |
| &nbsp;&nbsp;&nbsp;Section 2.10 Earn-Out Payments | 15 |
| &nbsp;&nbsp;&nbsp;Section 2.11 Review of Earn-Out Payment Certificate | 16 |
| &nbsp;&nbsp;&nbsp;Section 2.12 Dispute Settlement | 17 |
| &nbsp;&nbsp;&nbsp;Section 2.13 Reasonable Cooperation. | 18 |
| &nbsp;&nbsp;&nbsp;Section 2.14 Canadian Tax Treatment | 18 |
| &nbsp;&nbsp;&nbsp;Section 2.15 Company Debentures | 18 |
| ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF PURCHASER | 19 |
| &nbsp;&nbsp;&nbsp;Section 3.1 Representations and Warranties of Purchaser | 19 |
| ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY | 27 |
| &nbsp;&nbsp;&nbsp;Section 4.1 Representations and Warranties of the Company | 27 |
| ARTICLE 5 STOCKHOLDERS REPRESENTATIVE | 34 |
| &nbsp;&nbsp;&nbsp;Section 5.1 Stockholders Representative. | 34 |
| &nbsp;&nbsp;&nbsp;Section 5.2 Indemnification of Stockholders Representative | 36 |
| ARTICLE 6 COVENANTS OF THE COMPANY | 36 |
| &nbsp;&nbsp;&nbsp;Section 6.1 Necessary Consents. | 36 |
| &nbsp;&nbsp;&nbsp;Section 6.2 Conduct of Business of the Company | 37 |
| &nbsp;&nbsp;&nbsp;Section 6.3 All Other Action | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.4 Updated Company Disclosure Letter | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.5 Company Capitalization Spreadsheet. | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.6 Company Information Statement | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.7 Audited Company Financial Statements | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.8 Notices of Certain Events | 40 |
| ARTICLE 7 COVENANTS OF PURCHASER | 40 |
| &nbsp;&nbsp;&nbsp;Section 7.1 Necessary Consents. | 40 |
| &nbsp;&nbsp;&nbsp;Section 7.2 Non-Solicitation | 40 |
| &nbsp;&nbsp;&nbsp;Section 7.3 Conduct of Business of the Purchaser | 41 |
| &nbsp;&nbsp;&nbsp;Section 7.4 Reasonable Best Efforts | 43 |
| &nbsp;&nbsp;&nbsp;Section 7.5 Notices of Certain Events | 43 |

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MERGER AGREEMENT

- i -

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Section 7.6 Subco | 43.0 |
| &nbsp;&nbsp;&nbsp;Section 7.7 Stockholder Approval. | 44.0 |
| &nbsp;&nbsp;&nbsp;Section 7.8 Warrant Exercise Price | 44.0 |
| &nbsp;&nbsp;&nbsp;Section 7.9 Further Assurances | 44.0 |
| &nbsp;&nbsp;&nbsp;Section 7.10 Updated Purchaser Disclosure Letter | 44.0 |
| ARTICLE 8 CONDITIONS PRECEDENT | 45.0 |
| &nbsp;&nbsp;&nbsp;Section 8.1 Conditions for the Benefit of Purchaser | 45.0 |
| &nbsp;&nbsp;&nbsp;Section 8.2 Conditions for the Benefit of the Company | 46.0 |
| ARTICLE 9 CLOSING | 48.0 |
| &nbsp;&nbsp;&nbsp;Section 9.1 Time of Closing | 48.0 |
| &nbsp;&nbsp;&nbsp;Section 9.2 Company Closing Documents | 48.0 |
| &nbsp;&nbsp;&nbsp;Section 9.3 Purchaser's Closing Documents | 49.0 |
| ARTICLE 10 TERMINATION | 50.0 |
| &nbsp;&nbsp;&nbsp;Section 10.1 Termination | 50.0 |
| &nbsp;&nbsp;&nbsp;Section 10.2 Notice and Effect of Termination. | 51.0 |
| ARTICLE 11 INDEMNIFICATION | 51.0 |
| &nbsp;&nbsp;&nbsp;Section 11.1 Indemnification by the Company Stockholders | 51.0 |
| &nbsp;&nbsp;&nbsp;Section 11.2 Indemnification by Purchaser. | 52.0 |
| &nbsp;&nbsp;&nbsp;Section 11.3 Survival of Representations and Warranties | 52.0 |
| &nbsp;&nbsp;&nbsp;Section 11.4 Limitation on Indemnification | 53.0 |
| &nbsp;&nbsp;&nbsp;Section 11.5 Indemnification Procedure | 54.0 |
| &nbsp;&nbsp;&nbsp;Section 11.6 Remedies | 55.0 |
| &nbsp;&nbsp;&nbsp;Section 11.7 Adjustment to Purchase Price | 55.0 |
| &nbsp;&nbsp;&nbsp;Section 11.8 Right to Bring Actions; No Contribution. | 55.0 |
| &nbsp;&nbsp;&nbsp;Section 11.9 Set-Off | 55.0 |
| ARTICLE 12 GENERAL | 56.0 |
| &nbsp;&nbsp;&nbsp;Section 12.1 Confidential Information; Press Release | 56.0 |
| &nbsp;&nbsp;&nbsp;Section 12.2 Counterparts | 57.0 |
| &nbsp;&nbsp;&nbsp;Section 12.3 Severability | 57.0 |
| &nbsp;&nbsp;&nbsp;Section 12.4 Applicable Law; Jurisdiction; Venue | 57.0 |
| &nbsp;&nbsp;&nbsp;Section 12.5 Arbitration | 58.0 |
| &nbsp;&nbsp;&nbsp;Section 12.6 Disclosure Schedule | 58.0 |
| &nbsp;&nbsp;&nbsp;Section 12.7 Successors and Assigns. | 58.0 |
| &nbsp;&nbsp;&nbsp;Section 12.8 Interpretation. | 58.0 |
| &nbsp;&nbsp;&nbsp;Section 12.9 Expenses. | 59.0 |
| &nbsp;&nbsp;&nbsp;Section 12.10 Specific Enforcement | 59.0 |
| &nbsp;&nbsp;&nbsp;Section 12.11 Further Assurances | 59.0 |
| &nbsp;&nbsp;&nbsp;Section 12.12 Entire Agreement | 59.0 |
| &nbsp;&nbsp;&nbsp;Section 12.13 Notices | 60.0 |
| &nbsp;&nbsp;&nbsp;Section 12.14 Waiver. | 61.0 |
| &nbsp;&nbsp;&nbsp;Section 12.15 Amendments | 61.0 |
| &nbsp;&nbsp;&nbsp;Section 12.16 Remedies Cumulative | 61.0 |
| &nbsp;&nbsp;&nbsp;Section 12.17 Currency. | 61.0 |

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MERGER AGREEMENT

- ii -

Section 12.18 Number and Gender 61 <br> Section 12.19 Time of Essence. 61

**Exhibits and Appendix**

---

| | |
|:---|:---|
| Exhibit A | Form of Accredited Investor Certification |
| Exhibit B | Form of Employment Agreement |
| Exhibit C | Lock-Up Agreement |
| Exhibit D | Legending of Payment Shares |
| Appendix I | Earn-Out Example |

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MERGER AGREEMENT

- iii -

**MERGER AGREEMENT**

This Agreement is entered into on January 21, 2022 by and among Icanic Brands Company Inc. (the "**Purchaser**"), a company incorporated pursuant to the *Business Corporations Act* (British Columbia), LEEF Holdings, Inc. (the "**Company**"), a Nevada corporation, Icanic Merger Sub, Inc., a Nevada corporation ("**Subco**"), and Micah Anderson, solely in his capacity as representative of the Company Stockholders (the "**Stockholders Representative**"). Defined terms used herein have the meaning set forth in Section 1.1.

To the extent possible under the Tax Act, the Parties intend that for Canadian federal income purposes, an Eligible Holder shall be entitled to make a joint income tax election, pursuant to section 85 of the Tax Act (and any analogous provision of provincial income tax law), to have the Eligible Holder's disposition of their Company Common Shares pursuant to the Merger occur on a full or partial rollover basis.

Now, therefore, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties and covenants herein contained, the Parties agree as follows:

**ARTICLE 1**

**DEFINITIONS**

**Section 1.1 Definitions**

In this Agreement (including the preamble, recitals and each Schedule hereto), the following terms have the meanings ascribed thereto as follows:

(1) "**Accredited Investor**" means an accredited investor as defined in Rule 501(a) under the U.S. Securities Act.

(2) "**Accredited Investor Certification**" means the Accredited Investor Certification, in substantially the form attached hereto as Exhibit A.

(3) "**Acquisition**" means the acquisition of the Company by Purchaser effected through the Merger.

(4) "**Affiliate**" has the meaning ascribed thereto in the BCBCA.

(5) "**Aggregate Company Shares Deemed Outstanding**" means the aggregate number of Company Common Shares issued and outstanding as of immediately prior to the Effective Time.

(6) "**Agreement**" means this Agreement and any instrument supplemental or ancillary hereto; and the expressions "**Article**", "**Section**", and "**subsection**" followed by a number means and refer to the specified Article, section or subsection of this Agreement.

(7) "**Ancillary Agreements**" means all agreements, certificates and other instruments delivered or given pursuant to this Agreement, including without limitation the Employment Agreement.

(8) "**Applicable Money Laundering Laws**" has the meaning ascribed thereto in Section 3.1(mm).

(9) "**Applicable Securities Laws**" means applicable securities legislation, securities regulation and securities rules, as amended, and the policies, notices, instruments and blanket orders having the force of law, in force from time to time.

(10) "**Arbitration**" has the meaning ascribed thereto in Section 12.5(a).

(11) "**Arbitrator**" has the meaning ascribed thereto in Section 12.5(a).

(12) "**Articles of Merger**" means the Articles of Merger as required pursuant to Section 92A.200 of the NRS to be filed with the Secretary of Sate of the State of Nevada to effect the Merger.

(13) "**Basket**" has the meaning ascribed thereto in Section 11.4(a).

(14) **"BCBCA"** means *Business Corporations Act* (British Columbia).

(15) "**BCC License**" means each and all Cannabis Licenses issued to the Company and its Subsidiaries by the State of California Bureau of Cannabis Control, as required for, or in connection with, the Company's business operations.

(16) "**Business Day**" means any day, other than a Saturday, Sunday or statutory holiday in Vancouver, British Columbia or in the State of California, United States.

(17) "**Cannabis License**" means any temporary, provisional or permanent permit, license, registration, variance, clearance, consent, commission, franchise, exemption, order, authorization, or approval from any Governmental Authority that regulates the cultivation, manufacture, processing, marketing, sale or distribution of cannabis products, whether for medical or recreational use, including but not limited to the annual cannabis license issued by the State of California (including by the Bureau of Cannabis Control, the California Department of Food and Agriculture or the California Department of Public Health, as applicable).

(18) "**Cash**" means the consolidated amount of cash and cash equivalents of the Purchaser, as defined by and determined in accordance with IFRS and shall also include any funds advanced to the Company with respect to the Company's cannabis manufacturing facility located in Arvin, California, including the Loan; provided, however, Cash shall (a) not include (i) any Restricted Cash or (ii) cash and cash equivalents in respect of uncollected accounts receivable (other than the Loan) and (b) be calculated net of any amounts required to cover wire transfers, automated clearing house transactions, checks and similar instruments issued by the Company which have not cleared.

(19) "**Claim**" means any claim, action, audit, suit, assessment, arbitration, mediation, litigation, demand, inquiry, governmental charge, order, hearing or any proceeding or investigation, in each case that is by or before any Governmental Authority, whether civil, criminal, investigative, informal, administrative or otherwise.

(20) "**Closing**" means the completion of the Acquisition in accordance with the terms and conditions of this Agreement.

(21) "**Closing Date**" means the Business Day on which all conditions set forth in Article 8 (other than those conditions that by their nature are to be satisfied or waived at the Closing, but subject to the satisfaction or waiver of those conditions) are satisfied or waived or such other Business Day as the Parties may agree to in writing.

(22) "**Closing Payment**" has the meaning ascribed thereto in Section 2.2(a)(i).

(23) "**Closing Press Release**" has the meaning ascribed thereto in Section 12.1(b)(ii).

(24) "**Code**" means the United States Internal Revenue Code of 1986, as amended.

(25) "**Company**" means LEEF Holdings, Inc., a corporation incorporated under the laws of Nevada.

(26) "**Company Auditors**" means MGO.

(27) "**Company Capitalization Spreadsheet**" means the spreadsheet delivered at Closing setting out the outstanding share capital of the Company, including the issued and outstanding Company Common Shares, Company Options, Company Warrants and Company Debentures, together with the address of record of each such holder.

(28) "**Company Common Shares**" means the shares of common stock of the Company, $0.001 par value per share.

(29) "**Company Debentures**" means each of the outstanding 9% Convertible Senior Secured Debentures due June 6, 2022 issued pursuant to the Company Indenture.

(30) "**Company Disclosure Letter**" means the disclosure letter dated as of the date hereof delivered by the Company to Purchaser prior to the execution and delivery of this Agreement.

(31) "**Company Financial Statements**" means (i) the unaudited income statement for the years ended December 31, 2019 and 2020 and for the five month period ended May 31, 2021, (ii) the unaudited statement of financial position as at December 31, 2019, December 31, 2020 and May 31, 2021, (iii) the unaudited statement of cash flows for the year ended December 31, 2020 and for the five month period ended May 31, 2021, and (iv) the unaudited statement of changes in equity as at December 31, 2020.

(32) "**Company Fundamental Representations**" shall mean the representations of the Company set forth in Section 4.1(a), (b), (f), (g), (h) and (m).

(33) "**Company Indenture**" means that certain Indenture dated June 6, 2019 by and among the Company and Odyssey Trust Company, as both Trustee and Collateral Agent thereunder.

(34) "**Company Key Personnel**" means each officer and director of the Company.

(35) "**Company Options**" means the outstanding stock options of the Company, as set forth in the Company Capitalization Spreadsheet, with each such option entitling the holder thereof to acquire the number of Company Common Shares set forth beside such holder's name on the Company Capitalization Spreadsheet, subject to adjustments, pursuant to the terms of the applicable option agreement.

(36) "**Company Revenue**" means the sum of (i) all Direct Revenue plus (ii) all Referred Revenue.

(37) "**Company Stockholder Indemnified Persons**" has the meaning ascribed thereto in Section 11.2.

(38) "**Company Stockholders**" means holders of the Company Common Shares.

(39) "**Company Warrants**" means common share purchase warrants of the Company, each entitling the holder thereof to acquire the number of Company Common Shares set forth beside such holder's name on the Company Capitalization Spreadsheet.

(40) "**Confidential Information**" means any information concerning the Company or Purchaser (the "**Disclosing Party**") or its business, properties and assets made available to the other party or its representatives (the "**Receiving Party**"); provided that it does not include information which (i) is generally available to or known by the public other than as a result of improper disclosure by the Receiving Party or pursuant to a breach of Section 12.1 by the Receiving Party, or (ii) is obtained by the Receiving Party from a source other than the Disclosing Party, provided that (to the reasonable knowledge of the Receiving Party) such source was not bound by a duty of confidentiality to the Disclosing Party or another party with respect to such information.

(41) "**Contract**" means, with respect to a Person, any contract, instrument, permit, concession, licence, loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, partnership or joint venture agreement or other legally binding agreement, arrangement or understanding, whether written or oral, to which the Person is a party or by which, to the knowledge of such Person, the Person or its property and assets is bound or affected.

(42) **"CSE"** means the Canadian Securities Exchange.

(43) "**Depositary**" means National Securities Administrators Ltd. or any other trust company, bank or other financial institution agreed to in writing by the Company and the Purchaser for the purpose of, among other things, exchanging certificates representing Company Common Shares for the Resulting Issuer Common Shares in connection with the Merger.

(44) "**Direct Revenue**" means the revenue of the Company and each of its Subsidiaries.

(45) "**Dissenting Shares**" means any Company Common Shares that are held by a Company Stockholder immediately prior to the Effective Time and in respect of which appraisal rights have been perfected in accordance with the NRS in connection with the Merger and have not been effectively withdrawn or lost (through failure to perfect or otherwise).

(46) "**DRS**" means the Direct Registration System of the Purchaser's transfer agent for Resulting Issuer Common Shares.

(47) "**Earn-Out Payments**" means collectively, the First Earn-Out Payment, the Second Earn-Out Payment and the Third Earn-Out Payment, and "**Earn-Out Payment**" means any one of them.

(48) "**Earn-Out Payments Certificate**" has the meaning ascribed thereto in Section 2.10.

(49) "**Earn-Out Payments Certificate Objection**" has the meaning ascribed thereto in Section 2.10.

(50) "**Earn-Out Payments Firm**" has the meaning ascribed thereto in Section 2.12.

(51) "**Effective Date**" means the day on which the Effective Time of the Merger occurs.

(52) "**Effective Time**" means the time of acceptance by the Secretary of State of the State of Nevada of the Articles of Merger in accordance with Section 92A.200 of the NRS or such later time as may be agreed to by the Parties and set forth in such filing for the effectiveness of the Merger.

(53) "**Eligible Holder**" means a beneficial owner of Company Common Shares immediately prior to the Effective Time (other than with respect to Dissenting Shares) who is: (a) a resident of Canada for purposes of the Tax Act (other than a Tax Exempt Person) or (b) a partnership any member of which is a resident of Canada for the purposes of the Tax Act (other than a Tax Exempt Person).

(54) "**Employee**" means an officer or employee of the Company, Purchaser or Subco.

(55) "**Employee Plan**" has the meaning ascribed thereto in Section 3.1(dd).

(56) "**Employment Agreement**" means the form of Employment Agreement, in substantially the form attached hereto as Exhibit B.

(57) "**Environmental Laws**" means all Laws relating to workplace safety or health, pollution or protection of the environment, including without limitation, laws relating to the exposure to, or Releases or threatened Releases of, hazardous materials, substances or wastes as the foregoing are enacted or in effect on or prior to Closing.

(58) "**Escrow Agreement**" means that certain escrow agreement to be dated as of the Closing Date, and substantially in the form agreed to by the Purchaser and Leef as of the date hereof, pursuant to which the Purchaser Common Shares issuable to Mark Smith under the Smith Employment Agreement shall be deposited.

(59) "**Exchange Ratio**" means an amount equal to the number of Payment Shares divided by the Aggregate Company Shares Deemed Outstanding (as shown on the Company Capitalization Spreadsheet), but excluding any Dissenting Shares.

(60) "**Expiration Date**" has the meaning ascribed thereto in Section 11.3(a).

(61) "**First Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(a).

(62) "**First Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(a).

(63) "**Fraud**" means common law fraud that is committed with actual (as opposed to imputed or constructive) knowledge of falsity and with the intention to deceive or mislead (as opposed to reckless indifference to the truth) another who is relying thereon (excluding, for the avoidance of doubt, any theory of fraud premised upon recklessness or gross negligence).

(64) "**Fundamental Representations**" means the Company Fundamental Representations and the Purchaser Fundamental Representations;

(65) "**GAAP**" means United States Generally Accepted Accounting Principles.

(66) "**Governmental Authority**" means and includes, without limitation, any national, federal government, province, state, municipality or other political subdivision of any of the foregoing, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation or other entity owned or controlled (through stock or capital ownership or otherwise) by any of the foregoing, including the CSE.

(67) "**Hazardous Materials**" means any materials or substances or wastes as to which liability or standards of conduct may be imposed under any Environmental Law.

(68) **"IFRS"** means International Financial Reporting Standards.

(69) "**include**" or "**including**" shall be deemed to be followed by the words "without limitation".

(70) "**Indemnifiable Claim**" has the meaning ascribed thereto in Section 11.5.

(71) "**Indemnification Notice**" has the meaning ascribed thereto in Section 11.5.

(72) "**Indemnified Party**" has the meaning ascribed thereto in Section 11.5.

(73) "**Indemnifying Party**" has the meaning ascribed thereto in Section 11.5.

(74) "**Information Statement**" has the meaning ascribed thereto in Section 6.6.

(75) "**Intellectual Property**" means, in any and all jurisdictions throughout the world, all (a) patents and patent applications, (b) registered trademarks, trade names, service marks, logos, corporate names, internet domain names, and any applications for registration of any of the foregoing, together with all goodwill associated with each of the foregoing, (c) registered and material unregistered copyrights, including copyrights in computer software, mask works and databases and (d) trade secrets and other proprietary know-how.

(76) "**JAMS**" has the meaning ascribed thereto in Section 12.5(a).

(77) "**Laws**" means all laws, statutes, by-laws, rules, regulations, orders, decrees, ordinances, protocols, codes, guidelines, policies, notices, directions and judgments or other requirements of any Governmental Authority applicable to the Company or Purchaser, other than U.S. Federal Cannabis Laws.

(78) "**Leased Real Property**" means any real property leased, subleased, licensed or otherwise used by the Company or the Purchaser, as applicable, as tenant, subtenant, licensee or occupant, as applicable, together with, to the extent leased by the Company or the Purchaser, as applicable. all buildings and other structures, facilities or improvements currently or hereafter located thereon, all fixtures, systems, equipment and items of personal property of the Company or the Purchaser, as applicable, attached or appurtenant thereto and all easements, licenses, rights and appurtenances relating to the foregoing.

(79) "**Leases"** has the meaning ascribed thereto in Section 3.1(y).

(80) "**Letter of Transmittal**" means that certain Letter of Transmittal included with the Information Statement to be delivered to the Company Stockholders.

(81) "**Loan**" means the $500,000 loan advanced by Purchaser to the Company pursuant to the promissory note dated October 22, 2021 between Purchaser and the Company.

(82) "**Lock-Up Agreement**" means that certain Lock-Up Agreement, in substantially the form attached hereto as Exhibit C.

(83) "**Losses**" shall mean all direct, out of pocket costs related to any awards, Liabilities, damages, bonds, dues, assessments, fines, penalties, Taxes, fees, costs (including costs of investigation, defense and enforcement of this Agreement), expenses or amounts paid in settlement (in each case, including reasonable attorneys' and experts' fees and expenses), whether or not involving a Third Party Claim. For the avoidance of doubt Losses shall not include any indirect, incidental, consequential or punitive damages or diminution in value or lost profits.

(84) "**Material Adverse Change**" or **"Material Adverse Effect"** with respect to Purchaser or the Company, as the case may be, means any change (including a decision to implement such a change made by the board of directors or by senior management who believe that confirmation of the decision by the board of directors is probable), event, violation, inaccuracy, circumstance or effect that is materially adverse to the business, assets (including intangible assets), liabilities, capitalization, ownership, financial condition or results of operations of Purchaser or the Company, as the case may be, taken as a whole on a consolidated basis; *provided*, *however*, that in no event shall any of the following be deemed, either alone or in combination, to constitute, nor shall any of the following be taken into account in determining whether there has been, a Material Adverse Change or Material Adverse Effect with respect to such entity (except to the extent, in the case of clauses (i) through (iii) below, they have a disproportionate effect on such Party and its Subsidiaries, taken as a whole, as compared to the other companies in the industry in which such Party and its Subsidiaries operate): (i) changes in conditions in the U.S., Canadian or global economy, capital or financial markets generally, including, without limitation, changes in interest or exchange rates, (ii) changes in legal, tax, regulatory, political or business conditions that, in each case, generally affect the geographic regions or industries in which the Party and its Subsidiaries conduct business, (iii) changes in GAAP and/or IFRS, (iv) the negotiation, execution, announcement or performance of this Agreement or the transactions contemplated hereby or the consummation of the transactions contemplated by this Agreement, including, without limitation, the impact thereof on relationships, contractual or otherwise, with customers, suppliers, distributors, landlords, tenants, lenders, investors or employees, (v) acts of war, armed hostilities, sabotage or terrorism, or any escalation or worsening of any such acts of war, armed hostilities, sabotage or terrorism that do not disproportionately affect the Party or its Subsidiaries, (vi) any pandemic, epidemic or any publicly declared health emergency (including the COVID-19 virus); (vii) any action taken by the Party at the request of the other Party or (viii) any failure to meet internal or published projections, estimates or forecasts of revenues, earnings, or other measures of financial or operating performance for any period (provided that the underlying changes, events, circumstances, conditions or effects that contributed to such failure may be taken into account in determining whether such failure has resulted in a Material Adverse Change or Material Adverse Effect).

(85) "**Mergeco**" means the Company, which shall be the surviving corporation of the Merger of Subco with and into the Company pursuant to the Merger.

(86) "**Merger**" means the merger of Subco with and into the Company pursuant to the provisions of the NRS in the manner contemplated in and pursuant to the terms and conditions of this Agreement.

(87) "**Minimum Cash Balance**" means $3,000,000.

(88) **"NRS"** means the Nevada Revised Statutes.

(89) "**Ordinary Course**" means, with respect to the Company and Purchaser, as applicable, the operation of its business in a prudent and business-like manner consistent with the normal day-to-day operations of the business of such Party and in a manner consistent with past practice.

(90) "**Party**" means each of the Company, Purchaser, Subco and the Stockholders Representative and "**Parties**" means the Company, Purchaser, Subco and the Stockholders Representative.

(91) "**Pay-Out Dates**" means the First Pay-Out Date, the Second Pay-Out Date and the Third Pay-Out Date and "**Pay-Out Date**" means any of the First Pay-Out Date, the Second Pay-Out Date or the Third Pay-Out Date.

(92) "**Payment Shares**" means that number of Purchaser Common Shares equal to the higher of (a) $120,000,000 or (b) two times the TTM Company Revenue for the period ended September 30, 2021, divided by the 30-day VWAP of the Purchaser Common Shares on the CSE for the period ended on the Business Day prior to the Closing Date, using the daily foreign exchange rate for Canadian to United States dollars published by the Bank of Canada on the date the 30-day VWAP of the Purchaser Common Shares on the CSE is determined.

(93) "**Permits**" has the meaning ascribed thereto in Section 3.1(r).

(94) "**Person**" includes an individual, corporation, partnership, joint venture, trust, unincorporated organization, the Crown or any agency or instrumentality thereof or any other juridical entity.

(95) "**Pro Rata Share**" means with respect to any Company Stockholder, a ratio (expressed as a percentage) equal to (a) the number of Company Common Shares held by such Company Stockholder as of immediately prior to the Effective Time divided by (b) the Aggregate Company Shares Deemed Outstanding.

(96) "**Purchase Price**" has the meaning ascribed thereto in Section 2.2(a).

(97) "**Purchaser**" has the meaning ascribed thereto on the first page of this Agreement.

(98) "**Purchaser Assets**" means the property and assets of Purchaser, of every kind and description and wheresoever situated.

(99) "**Purchaser Common Shares**" means the common shares in the capital of Purchaser.

(100) "**Purchaser Disclosure Letter**" means the disclosure letter dated as of the date hereof delivered by Purchaser to the Company prior to the execution and delivery of this Agreement.

(101) "**Purchaser Financial Statements**" means (i) the audited consolidated financial statements of the Purchaser for the years ended July 31, 2021 and 2020, prepared in accordance with IFRS, and (ii) the unaudited interim financial statements of the Company for the three month period ended October 31, 2021, prepared in accordance with IFRS.

(102) "**Purchaser Fundamental Representations**" shall mean the following representations of the Purchaser set forth in Section 3.1(a), (b), (c), (g), (h) and (i).

(103) "**Purchaser Indemnified Persons**" has the meaning ascribed thereto in Section 11.1.

(104) "**Purchaser Key Personnel**" means each officer and director of Purchaser.

(105) "**Purchaser Stock Option Plan**" means the stock option and incentive plan adopted by the shareholders of the Purchaser on May 27, 2016, as amended from time to time.

(106) "**Purchaser Transaction Approvals**" has the meaning ascribed thereto in Section 7.8(b).

(107) "**Referred Revenue**" means all revenue of Purchaser and its Subsidiaries (other than Direct Revenue) resulting from (i) the acquisition, whether by merger, stock sale or purchase of assets, of any Person by the Purchaser or its Subsidiaries that is first introduced by Micah Anderson and/or his Representatives or Affiliates, including without limitation, those Persons set forth in that certain written list delivered to Purchaser by Micah Anderson prior to the Closing Date, and (ii) sales and services to any Person that is directly referred to Purchaser and its Subsidiaries by the Company or Micah Anderson and/or his Representatives or Affiliates.

(108) "**Release**" means any release, spill, emission, discharge, leaking, pumping, injection, deposit, disposal, dispersal, leaching or migration into the environment (including, without limitation, ambient air, surface water, groundwater and surface or subsurface strata) or into or out of any property, including the movement of Hazardous Materials through or in the soil, surface water or groundwater.

(109) "**Representatives**" means, with respect to any Person, the advisors, attorneys, accountants, consultants or other representatives (acting in such capacity) retained by such Person or any of its controlled Affiliates, together with directors, officers and employees of such Person and its Subsidiaries.

(110) "**Requisite Stockholder Vote**" means the affirmative vote of greater than fifty percent (50.0%) of the issued and outstanding Company Common Shares as of the date of this Agreement approving this Agreement and the Merger.

(111) "**Restricted Cash**" means any trapped cash, cash security or performance deposits, cash escrow accounts, cash subject to a lockbox, dominion, control or similar agreement, cash held on behalf of or for the benefit of another Person or otherwise subject to any restrictions, limitations on use, or Taxes on use, transfer or distribution by Law, Contract or otherwise, including outstanding and un-cleared checks, wires in transit, repatriations, cash securing letters of credit obligations and customer, landlord or security deposits.

(112) "**Resulting Issuer**" means the Purchaser from and after the Effective Time.

(113) "**Resulting Issuer Common Shares**" means the common shares in the capital of the Resulting Issuer.

(114) "**Resulting Issuer Options**" means the options of the Resulting Issuer to be issued in exchange for the Company Options as provided in Section 2.2 hereof, with each such Resulting Issuer Option entitling the holder to purchase one Resulting Issuer Common Share.

(115) "**Second Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(b).

(116) "**Second Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(b).

(117) "**Signing Press Release**" has the meaning ascribed thereto in Section 12.1(b)(ii).

(118) "**Smith Employment Agreement**" means the executive employment agreement dated January 27, 2021 between Mark Smith and the Purchaser.

(119) "**Stockholders Representative**" has the meaning ascribed thereto on the first page of this Agreement.

(120) "**Subco**" means Icanic Merger Sub, Inc., a direct, wholly-owned subsidiary of Purchaser incorporated under the NRS for the sole purpose of effecting the Merger in accordance with the terms of this Agreement.

(121) "**Subsidiary**" means, when used with respect to any Person, any corporation, limited liability company, partnership, association, trust or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power (or, in the case of a partnership, more than 50% of the general partnership interests) are, as of such date, owned by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person; provided that, in the case of Purchaser, the term "Subsidiary" will be deemed to include Subco prior to the Effective Time and Mergeco following the Effective Time.

(122) "**Supplemental Indenture"** means a Supplemental Indenture entered into by and among Purchaser and Odyssey Trust Company, as both trustee and collateral agent thereunder, pursuant to Section 10.01(b) of the Company Indenture, pursuant to which Purchaser shall assume the duties and obligations of the Company under the Company Indenture and the Company Debentures outstanding thereunder as of Closing.

(123) "**Taxes**" means all taxes (including income tax, capital tax, payroll taxes, employer health tax, workers' compensation payments, property taxes and land transfer taxes), duties, royalties, levies, imposts, assessments, deductions, charges or withholdings and all liabilities with respect thereto including any penalty and interest payable with respect thereto.

(124) "**Tax Act**" means the *Income Tax Act* (Canada), as amended.

(125) "**Tax Exempt Person**" means a person who is exempt from tax under Part I of the Tax Act.

(126) **"Termination Date"** has the meaning ascribed thereto in Section 10.1.

(127) "**Third Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(c).

(128) "**Third Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(c).

(129) "**Third Party**" shall mean any Person other than Purchaser or the Company or their respective Affiliates.

(130) "**Third Party Claim**" mean any claim, demand, action, suit, proceeding or litigation asserted by a Third Party against any Party entitled to indemnification under Article 11 of this Agreement.

(131) **"TTM"** means the trailing 12-months.

(132) **"United States"** means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia.

(133) "**U.S. Federal Cannabis Laws**" means any U.S. federal law, civil, criminal or otherwise, that prohibit or penalize, the advertising, cultivation, harvesting, production, distribution, sale and possession of Cannabis and/or related substances or products containing or relating to the same, and related activities, including the prohibition on drug trafficking under the Controlled Substances Act (21 U.S.C. § 801, et seq.), the conspiracy statute under 18 U.S.C. § 846, the bar against aiding and abetting the conduct of an offense under 18 U.S.C. § 2, the bar against misprision of a felony (concealing another's felonious conduct) under 18 U.S.C. § 4, the bar against being an accessory after the fact to criminal conduct under 18 U.S.C. § 3, and federal money laundering statutes under 18 U.S.C. §§ 1956, 1957 and 1960.

(134) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

(135) "**VWAP**" means the volume-weighted average trading price.

**ARTICLE 2**

**ACQUISITION**

**Section 2.1 Agreement to Merge.**

Upon the terms and subject to the conditions contained in this Agreement, the Parties hereby agree to implement the Merger in accordance with the NRS. Purchaser shall, in its capacity as the sole stockholder of Subco, approve the Merger as soon as reasonably practicable with the intent that the same shall be completed on or before the date that is 60 days following the date hereof.

**Section 2.2 Merger Events.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon
 the terms and subject to the conditions set forth in this Agreement, at the Effective Time, by virtue of the Merger and without any
 action on the part of the Company, Subco and Purchaser, or any holder of Company Common Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 issued and outstanding Company Common Share (other than Dissenting Shares) will automatically be converted into the right to receive:
 (A) a number of Resulting Issuer Common Shares equal to one multiplied by the Exchange Ratio (the "**Closing Payment** ");
 and (B) the Pro Rata Share of each Earn-Out Payment, if any, payable pursuant to Section 2.10 (the amounts payable pursuant to this
 Section 2.2(a)(i) collectively, the "**Purchase Price** "). For greater certainty, issued and outstanding Company Common
 Shares (other than Dissenting Shares) will be disposed of to the Purchaser by an Eligible Holder for the Purchase Price;

(ii) each
 Company Option outstanding immediately prior to the Effective Time will be cancelled and exchanged for one Resulting Issuer Option
 on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 number of Resulting Issuer Common Shares subject to the Resulting Issuer Option, rounded down to the nearest whole share, will equal
 the number of Company Common Shares issuable upon exercise of the Company Option immediately prior to the Effective Time, multiplied
 by the Exchange Ratio;

(B) the
 exercise price of each Resulting Issuer Option will equal the exercise price of the Company Option divided by the Exchange Ratio;

(C) the
 other terms and conditions of the Resulting Issuer Option will be equivalent to the terms and conditions of the Company Option, including
 with respect to term, expiry date and vesting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the
 Resulting Issuer Options will otherwise be governed by the Purchaser Stock Option Plan;

(E) it
 is the intention of the Parties that each Resulting Issuer Option issued pursuant to this Section 2.2(ii) shall continue to qualify
 following the Effective Time as an incentive stock option as defined in Section 422 of the Code to the extent permitted under Section
 422 of the Code and to the extent the related Company Option qualified as an incentive stock option immediately prior to the Effective
 Time; and

(F) notwithstanding
 Section 2.2(a)(ii)(B), the exercise price per share and the number of Resulting Issuer Common Shares purchasable pursuant to each
 exchanged for Company Option following the Effective Time as well as the terms and conditions of such option shall be adjusted, to
 the extent necessary, in order to comply with Sections 424(a) and 409A of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each
 outstanding Company Warrant will be assumed by Purchaser on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 number of Resulting Issuer Common Shares subject to the Company Warrant will equal the number of Company Common Shares issuable upon
 exercise of the Company Warrant immediately prior to the Effective Time, multiplied by the Exchange Ratio;

(B) the
 exercise price of each Company Warrant will equal the exercise price of the Company Warrant divided by the Exchange Ratio;

(C) the
 other terms and conditions of the Company Warrant will remain unchanged and will continue to be governed by the applicable warrant
 certificate evidencing such Company Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) each
 share of Subco common stock issued and outstanding immediately prior to the Effective Time shall be converted into and become one
 share of common stock of Mergeco such that Mergeco shall be a wholly-owned subsidiary of the Resulting Issuer. As consideration for
 the issuance of the Payment Shares, Mergeco shall issue Purchaser one share of Mergeco common stock for each Resulting Issuer Common
 Share issued to the Company Stockholders as a part of the Merger.

**Section 2.3 Payment of Consideration and Exchange Procedures.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On
 the day immediately prior to the Effective Date, the Purchaser shall deposit in escrow pending the Effective Time, with the Depositary
 (the terms and conditions of such escrow to be satisfactory to the Parties, acting reasonably), sufficient Payment Shares to satisfy
 the Closing Payment to be paid to the Company Stockholders in accordance with Section 2.2(a)(i) of this Agreement. The Depositary
 shall hold the Payment Shares as agent and nominee for the Company Stockholders for distribution to such Company Stockholders and,
 following the Effective Time, the Depositary shall deliver the Payment Shares deposited with the Depositary to the Company Stockholders
 in accordance with Section 2.3(d) and the depositary agreement to be entered into among the Parties and the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following
 the Effective Time on the Effective Date, the original stock certificate of Subco registered in the name of Purchaser shall be cancelled
 and Purchaser shall be issued a stock certificate for the number of shares of the common stock of Mergeco to be issued to Purchaser
 as provided in Section 2.2(iv) hereof;

(c) Upon
 the Effective Time and subject to the treatment of Dissenting Shares in Section 2.7 hereof, certificates or other evidence representing
 the Company Common Shares, Company Options or Company Warrants, as applicable, shall cease to represent any claim upon or interest
 in the Company other than the right of the holder to receive, pursuant to the terms hereof and thereof, the Purchase Price, Resulting
 Issuer Options and Resulting Issuer Common Shares upon exercise of Company Warrants, respectively, in accordance with Section 2.2
 hereof;

(d) On
 or prior to the Effective Date, the Purchaser shall mail or otherwise cause to be delivered to each holder of record of Company Common
 Shares, at the address of record for such Company Stockholder: (i) a Letter of Transmittal for the surrender of stock certificates
 representing the Company Common Shares, (ii) an Accredited Investor Certification (for Company Stockholders that are a U.S. Person)
 and (iii) instructions for use in effecting the surrender of the Company Common Shares and certificates therefor to the Purchaser
 in exchange for the applicable portion of the Purchase Price. As soon as reasonably practicable after, but in no event more than
 five Business Days after the date that the Company Stockholder has surrendered the Company Common Shares for cancellation to the
 Purchaser, together with such Letter of Transmittal (including a completed and duly executed Accredited Investor Certification, if
 applicable) and any required Form W-9 or Form W-8, duly completed and validly executed in accordance with the instructions thereto
 (including all required deliverables), the holder of such Company Common Shares shall receive, and the Purchaser shall cause the
 Depositary, upon surrender thereof, to deliver share certificates or evidence of DRS entry in such Common Stockholder's name
 of the aggregate amount of Resulting Issuer Common Shares issuable to such Company Stockholder pursuant to Section 2.2(a)(i), and
 any Company Common Shares so surrendered to the Purchaser shall be canceled.

(e) As
 soon as practicable following the Effective Date, the Purchaser shall mail or otherwise cause to be delivered to each holder of Company
 Options, at the address set forth for such holder of Company Options on the Company Capitalization Spreadsheet the new Resulting
 Issuer Options in such holder's name pursuant to Section 2.2(a)(ii).

(f) As
 soon as practicable following the Effective Date, the Purchaser shall mail or otherwise cause to be delivered to each holder of a
 Company Warrant, at the address set forth for such holder of Company Warrants on the Company Capitalization Spreadsheet a written
 notice setting forth (i) the terms of the Company Warrant as adjusted pursuant to their terms and as provided for in Section 2.2(a)(iii),
 and (ii) that such Company Warrants will continue to be governed by the applicable warrant certificate as so adjusted.

**Section 2.4 Legending of Payment Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company, on behalf of the Company Stockholders, acknowledges that at the discretion of the Purchaser and the Stock Representative,
 the Payment Shares issued as consideration to the Company Stockholders pursuant to this Agreement shall be issued bearing the legends
 set forth in Exhibit D attached hereto (in additional to any legend required pursuant to the U.S. Securities Act).

**Section 2.5 Merged Corporation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Articles of Incorporation and the Bylaws of the Company shall be the Certificate of Incorporation and Bylaws of Mergeco, with any
 amendments thereto, to be made in accordance with applicable law at the Effective Time, as may be necessary to give effect to this
 Agreement, including the following provisions (i) through (vii):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Number of Directors.** The board of directors of Mergeco shall consist of a minimum of one (1) director and a maximum of two (2) directors.

(ii) **Officers and Directors**. As of the Effective Time, the initial directors of Mergeco shall be Micah Anderson and Emily Heitman. As of the
 Effective Time, the initial officers of Mergeco shall be:

---

| | |
|:---|:---|
| <u>Name</u> | <u>Title</u> |
| Micah Anderson | Chief Executive Officer and President |
| Emily Heitman | Chief Operating Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Fiscal Year**. The fiscal year end of Mergeco shall be July 31 in each year, unless and until changed by resolution of the board of directors.

(iv) **Registered Office**. The registered office of Mergeco shall be the registered office of the Company.

(v) **Authorized Capital.** The authorized capital of Mergeco shall be 100,000,000,000 shares of common stock with a par value of $0.001 each, all
 of which shall be common stock.

(vi) **Business and Powers**. There shall be no restriction on the business that Mergeco may carry on or on the powers that Mergeco may exercise.

**Section 2.6 Fractional Shares.**

No fractional Resulting Issuer Common Shares will be issued or delivered pursuant to the Merger. Any fractional share will be rounded down to the next lowest number and no consideration will be paid in lieu thereof.

**Section 2.7 Dissenting Shares.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 any provision of this Agreement to the contrary, any Dissenting Shares shall not be converted into or represent a right to receive
 the Company Stockholder's Pro-Rata Share of the Purchase Price for Company Common Shares pursuant to Section 2.2(a)(i), but
 shall instead be converted into and represent only the right to receive such consideration as may be determined to be due with respect
 to any such Dissenting Shares pursuant to Section 92A.300 <u>et seq</u>. of the NRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 the provisions of Section 2.7(a), if any Company Stockholder who demands appraisal of such Company Common Shares under the NRS shall
 effectively withdraw or lose (through failure to perfect or otherwise) the right to appraisal, then, as of the later of (i) the Effective
 Time, or (ii) the occurrence of such event, such Company Stockholder's Company Common Shares shall automatically be converted
 into and represent only the right to receive such Company Stockholder's Pro-Rata Share of the Purchase Price as provided in
 Section 2.2(a)(i).

(c) The
 Company shall give Purchaser prompt notice of any written demands for appraisal of any Company Common Shares, withdrawals of such
 demands, and any other instruments that relate to such demands received by the Company. The Company shall not, except with the prior
 written consent of the Purchaser, make any payment with respect to any demands for appraisal of Company Common Shares or offer to
 settle or settle any such demands unless required by applicable Laws.

**Section 2.8 Effect of Merger.**

At the Effective Time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subco
 shall merge with and into the Company in accordance with the NRS and the separate existence of Subco shall cease and the Company
 shall continue as the surviving corporation.

(b) Mergeco
 shall possess all the rights, powers, privileges and franchise and be subject to all the obligations, liabilities and duties of the
 Company and Subco, all as provided under the NRS.

**Section 2.9 Filing of Articles of Merger.**

Following receipt of the Requisite Stockholder Vote and the approval of the stockholders of Subco to implement the Merger and subject to the satisfaction or waiver of all of the conditions precedent to the Merger set forth herein, the Company shall file the Articles of Merger and such other documents as required under the NRS to effect the Merger pursuant to the NRS.

**Section 2.10 Earn-Out Payments**

Following the Effective Date and the completion of the transactions contemplated by this Agreement, Purchaser shall pay to the Company Stockholders, on a Pro Rata Share basis, the following performance earn-out payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 15
 months following Closing (the "**First Pay-Out Date** "), an amount equal to 10% of (A) the product equal to two times
 the TTM Company Revenue calculated for the 12-month period immediately following Closing minus (B) the Closing Payment (the "**First Earn-Out Payment** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 27
 months following Closing (the "**Second Pay-Out Date** "), an amount equal to 10% of (A) the product equal to two times
 the TTM Company Revenue calculated for the 12- month period immediately following the first anniversary of the Closing minus (B)
 the Closing Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment (the "**Second Earn-Out Payment** ");
 and

(c) 39
 months following Closing (the "**Third Pay-Out Date** "), an amount equal to 10% of (A) the product equal to two times
 the TTM Company Revenue calculated for the 12-month period immediately following the second anniversary of the Closing minus (B)
 the Closing Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment minus (D) any amounts paid pursuant to the
 Second Earn-Out Payment (the "**Third Earn- Out Payment** ").

By way of example and for illustrative purposes only, Appendix I, attached hereto, sets forth a sample calculation of each of the First Earn-Out Payment, the Second Earn-Out Payment and the Third Earn-Out Payment.

Each Earn-Out Payment will be payable in Resulting Issuer Common Shares (the "**Earn-Out Shares**") at a price per Earn-Out Share equal to the 30-day VWAP of the Resulting Issuer Common Shares for the period ending on the Business Day prior to the date of issuance. All Earn-Out Shares issuable pursuant to this Section 2.10 shall be issued in DRS entry in such Common Stockholder's name within five Business Days following final resolution of the applicable Earn-Out Payment Certificate pursuant to Section 2.10 or Section 2.12(b).

**Section 2.11 Review of Earn-Out Payment Certificate**

Within 30 days following the applicable Pay-Out Date, Purchaser shall deliver to the Stockholders Representative a statement, executed by the Chief Financial Officer of Purchaser, setting forth Purchaser's good faith calculation of the applicable Earn-Out Payment, together with all supporting documentation (the "**Earn-Out Payments Certificate**"). If the Stockholders Representative disagrees with the computation of the applicable Earn-Out Payment set forth in the Earn-Out Payment Certificate, the Stockholders Representative may, within 30 calendar days after its receipt of the Earn- Out Payments Certificate, deliver a notice (an "**Earn-Out Payments Certificate Objection Notice**") to Purchaser setting forth in reasonable detail which components of the calculation and reasonable supporting details for such disagreement to the extent known at such time. If the Stockholders Representative agrees with the computation of the applicable Earn-Out Payment set forth in the Earn- Out Payment Certificate, the Stockholders Representative shall confirm same in writing to the Purchaser and the Earn-Out Payment Certificate shall be final and binding and the Purchaser shall effect the applicable Earn-Out Payment as soon as practicable and in any event, no later than five Business Days thereafter.

**Section 2.12 Dispute Settlement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser
 and the Stockholders Representative will attempt in good faith to resolve any disagreements set forth in any Earn-Out Payments Certificate
 Objection Notice for a period of not less than 30 calendar days. Any disputed items resolved in writing between Purchaser and the
 Stockholders Representative within such 30 day period shall be final and binding with respect to such items and shall not be subject
 to appeal or further review, absent Fraud or manifest error. If Purchaser and the Stockholders Representative do not agree in writing
 on a final resolution of all objections set forth in the Earn-Out Payments Certificate Objection Notice within such 30 calendar days
 after delivery of any Earn-Out Payments Certificate Objection Notice, Purchaser and the Stockholders Representative will, as promptly
 as practicable, jointly retain an independent accounting firm of national recognition to be mutually agreed upon (the "**Earn-Out Payments Firm**") to resolve any remaining disagreements, which determination must be in writing and must set forth, in reasonable
 detail, the basis therefor and must be based solely on (i) the definitions and other applicable provisions of this Agreement, (ii)
 a single presentation (which presentations shall be limited to the remaining items in dispute set forth in the Earn-Out Payments
 Certificate Objection Notice (and not otherwise resolved by Purchaser and the Stockholders Representative in writing)) submitted
 by each of Purchaser and the Stockholders Representative to the Earn-Out Payments Firm within 15 calendar days after the engagement
 of such firm (which the Earn-Out Payments Firm shall forward to Purchaser or the Stockholders Representative, as applicable) and
 (iii) one written response submitted to the Earn-Out Payments Firm within 10 calendar days after receipt of each such other Party's
 presentation (which the Earn-Out Payments Firm shall forward to Purchaser or the Stockholders Representative, as applicable), and
 not on independent review, which such determination shall be conclusive and binding on each Party and the Company Stockholders, absent
 Fraud or manifest error. Purchaser and the Stockholders Representative shall use commercially reasonable efforts to cause the Earn-Out
 Payments Firm to render a written determination as to each disputed item and the amount of the applicable Earn-Out Payment within
 45 days of the date of its engagement, and Purchaser and the Stockholders Representative shall, and shall cause their respective
 Affiliates and Representatives to, cooperate with the Earn-Out Payments Firm during its engagement. In resolving any disputed item,
 the Earn-Out Payments Firm may not assign a value to any item greater than the greatest value for such item claimed by either Party
 or less than the smallest value for such item claimed by either Party. All communications with the Earn-Out Payments Firm must include
 each of Purchaser and the Stockholders Representative. In acting under this Agreement, the Earn-Out Payments Firm shall function
 solely as an expert and not as an arbitrator. Purchaser and the Stockholders Representative shall bear the costs and expenses of
 any dispute resolution pursuant to this Section 2.12, including the fees and expenses of the Earn-Out Payments Firm and any enforcement
 of the determination thereof, based on the percentage which the portion of the contested amount not awarded to each Party bears to
 the amount actually contested by such Party, which percentage allocation shall be calculated on an aggregate basis based on the relative
 dollar values of the amounts in dispute and shall be determined by the Earn-Out Payments Firm at the time the determination of such
 Earn-Out Payments Firm is rendered on the merits of the matters submitted. The fees and disbursements of the Representatives of each
 Party incurred in connection with the preparation or review of the Earn-Out Payments Certificate and preparation or review of any
 Earn-Out Payments Certificate Objection Notice, as applicable, shall be borne by such Party. The determination by the Earn-Out Payments
 Firm shall be conclusive and binding and judgment may be entered upon the written determination of the Earn-Out Payments Firm in
 accordance with this Section 2.12.

(b) The
 Earn-Out Payments Certificate shall be deemed final for the purposes of this Section 2.11 upon the earliest of (i) the date Purchaser
 and the Stockholders Representative so agree in writing, (ii) the failure of the Stockholders Representative to deliver an Earn-Out
 Payments Certificate Objection Notice within thirty (30) calendar days of the date of receipt of the applicable Earn-Out Payments
 Certificate, and (iii) the resolution of all disputes, pursuant to Section 2.12, by Purchaser and the Stockholders Representative
 or the Earn-Out Payments Firm.

**Section 2.13 Reasonable Cooperation.**

At all times prior to the date that the Earn-Out Payments are paid to the Company Stockholders in accordance with Section 2.10, Purchaser shall, and shall cause Mergeco and their respective Subsidiaries to, make available all financial records and personnel that the Stockholders Representative (including any of its Representatives) or the Earn-Out Payments Firm may request, at any time during normal business hours, in connection with the transactions contemplated by Section 2.10, 2.11 and 2.12 subject to execution by the Stockholders Representative of a confidentiality agreement to reasonably ensure the confidentiality of the information provided by Purchaser, Mergeco and their respective Subsidiaries.

**Section 2.14 Canadian Tax Treatment.**

An Eligible Holder shall be entitled to make a joint income tax election, pursuant to section 85 of the Tax Act (and any analogous provision of provincial income tax law) with respect to the disposition of Company Common Shares under this Merger by providing two signed copies of the necessary joint election form(s) to an appointed representative, as directed by the Purchaser, within 60 days after the Effective Date, duly completed with the details of the Company Common Shares transferred and the applicable agreed amount for the purposes of such joint election(s). Purchaser shall, within 30 days after receiving the completed joint election form(s) from an Eligible Holder, and subject to such joint election form(s) being correct and complete and in compliance with requirements imposed under the Tax Act (or any analogous provision of provincial income tax law), sign and return such form(s) to such Eligible Holder for filing with the Canada Revenue Agency (or any applicable provincial taxation authority). Neither Purchaser, the Company nor any successor corporation shall be responsible for the proper completion and filing of any joint election form, and except for the obligation to sign and return the duly completed joint election form(s) which are received within 60 days of the Effective Date, for any taxes, interest or penalties arising as a result of the failure of an Eligible Holder to properly or timely complete and file such joint election form(s) in the form and manner prescribed by the Tax Act (or any applicable provincial legislation). In its sole discretion, Purchaser or any successor corporation may choose to sign and return a joint election form received by it more than 60 days following the Effective Date, but will have no obligation to do so.

**Section 2.15 Company Debentures.**

The Purchaser acknowledges and agrees that following the Effective Time, (i) the Company Debentures will remain outstanding and will continue to be governed in accordance with the terms of the Company Indenture, (ii) that the transactions contemplated by this Agreement will constitute a "Liquidity Event" (as such term is defined in the Company Indenture) entitling the holders of the Company Debentures to convert their Company Debentures for Resulting Issuer Common Shares in accordance with the terms of the Company Indenture, and (iii) all obligations of the Company pursuant to the Company Indenture (including, for greater certainty, the obligation to repay the principal amount outstanding under each such Company Debenture) will become obligations of the Resulting Issuer. The Purchaser agrees to execute and enter into such documents as may be requested by Odyssey, as collateral agent, to give effect to the foregoing, including, without limitation, the Supplemental Indenture.

**ARTICLE 3**

**REPRESENTATIONS AND WARRANTIES OF PURCHASER**

**Section 3.1 Representations and Warranties of Purchaser.**

Purchaser represents and warrants to and in favour of the Company as follows, and acknowledges that the Company is relying upon such representations and warranties in connection with the completion of the transactions contemplated herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 of Purchaser and Subco is a corporation incorporated and validly existing under the laws of their respective jurisdiction of incorporation.
 In each case, each such entity has all requisite corporate power and authority and is duly qualified and holds all Permits necessary
 or required to carry on its business as now conducted and in the case of Purchaser, to own, lease or operate the Purchaser Assets,
 and neither Purchaser nor, to the knowledge of Purchaser, any other Person, has taken any steps or proceedings, voluntary or otherwise,
 requiring or authorizing the dissolution or winding up of Purchaser or Subco, and Purchaser and Subco have all requisite corporate
 power and authority to enter into this Agreement and to carry out their obligations hereunder.

(b) The
 authorized share capital of Purchaser consists of: (i) an unlimited number of Purchaser Common Shares, of which 238,235,947 Purchaser
 Common Shares are issued and outstanding as fully paid and non-assessable shares in the capital of Purchaser; and (ii) an unlimited
 number of preferred shares, of which no preferred shares are issued and outstanding. Other than described in the Purchaser Disclosure
 Letter, there are no other options, warrants, other rights, agreements or commitments of any character whatsoever requiring the issuance,
 sale or transfer by Purchaser of any securities of Purchaser or any securities convertible into, or exchangeable or exercisable for,
 or otherwise evidencing a right to acquire any shares of Purchaser.

(c) Other
 than as described in the Purchaser Disclosure Letter, Purchaser has no direct or indirect Subsidiaries nor any investment in any
 Person or any agreement, option or commitment to acquire any such investment. All of the issued and outstanding securities of Subco
 are held by Purchaser. Subco has no liabilities and is not party to any agreement other than this Agreement.

(d) Purchaser
 is conducting its business in compliance in all material respects with all applicable Laws and regulations of each jurisdiction in
 which it carries on business and has not received a notice of non-compliance, and, to the knowledge of Purchaser, there are no facts
 that would give rise to a notice of material noncompliance with any such Laws and regulations. Each of Purchaser and its Subsidiaries
 and their respective Affiliates hold the applicable Cannabis Licenses required to conduct their present business. Each Cannabis License
 is in full force and effect in all material respects and has not been revoked, suspended, cancelled, rescinded, terminated, modified
 and has not expired. There are no pending or, to Purchaser's knowledge, threatened actions by or before any Governmental Authority
 to revoke, suspend, cancel, rescind, terminate and/or materially adversely modify any Cannabis License. True and complete copies
 of all of Cannabis Licenses held by Purchaser or its Subsidiaries have been made available to the Company and are set forth in Section
 3.1(d) of the Purchaser Disclosure Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No
 consent, approval, order or authorization of, or registration, declaration or filing with, any third party or Governmental Authority
 is required by or with respect to Purchaser and Subco in connection with the execution and delivery of and the performance by Purchaser
 and Subco of their respective obligations under this Agreement, the Ancillary Agreements and the consummation by Purchaser and Subco
 of the transactions contemplated hereunder and thereunder.

(f) Since
 July 31, 2021, (i) Purchaser and its Subsidiaries have operated their respective businesses in the Ordinary Course, and (ii) there
 has not been any Material Adverse Change with respect to the Purchaser or any of its Subsidiaries.

(g) Each
 of the execution and delivery of this Agreement and the applicable Ancillary Agreements, the performance by each of Purchaser and
 Subco of their obligations hereunder and thereunder and the consummation of the transactions contemplated in this Agreement and the
 applicable Ancillary Agreements, including the Merger and the issue of the Resulting Issuer Common Shares and Resulting Issuer Options
 and Resulting Issuer Common Shares issuable upon the exercise of the Resulting Issuer Options and Company Warrants in connection
 with the Merger, do not and will not conflict with or result in a material breach or violation of any of the terms or provisions
 of, or constitute a material default under (whether after notice or lapse of time or both), (i) any statute, rule or regulation applicable
 to Purchaser or Subco, including Applicable Securities Laws; (ii) the constating documents, Bylaws or resolutions of Purchaser or
 Subco; (iii) any material mortgage, note, indenture, contract, agreement, joint venture, partnership, instrument, lease or other
 document to which Purchaser or Subco is a party or by which it is bound; or (iv) any judgment, decree or order binding Purchaser
 or Subco or their respective assets. Upon consummation of the Merger, the Company Stockholders will own the Payment Shares to which
 each such Company Stockholder is entitled free and clear of any liens.

(h) This
 Agreement has been duly authorized and executed by Purchaser and Subco and constitutes a valid and binding obligation of each of
 them and shall be enforceable against each of them in accordance with its terms, except as enforcement thereof may be limited by
 bankruptcy, insolvency, reorganization, moratorium and other Laws relating to or affecting the rights of creditors generally and
 except as limited by the application of equitable principals when equitable remedies are sought, and by the fact that rights to indemnity,
 contribution and waiver, and the ability to sever unenforceable terms, may be limited by applicable Law.

(i) Other
 than this Agreement, the Purchaser is not currently party to any binding agreement in respect of: (i) the purchase of any material
 property or assets or any interest therein or the sale, transfer or other disposition of any material property or assets or any interest
 therein currently owned, directly or indirectly, by the Purchaser whether by asset sale, transfer of shares or otherwise in excess
 of $100,000 in the aggregate; or (ii) the change of control of the Purchaser (whether by sale or transfer of shares or sale of all
 or substantially all of the property or assets of the Purchaser or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The
 Purchaser Financial Statements will be prepared in accordance with IFRS consistently applied throughout the periods referred to therein
 and present fairly, in all material respects, the financial position (including the assets and liabilities, whether absolute, contingent
 or otherwise as required by IFRS) of Purchaser as at such dates and the results of its operations and its cash flows for the periods
 then ended and contain and reflect adequate provisions or allowance for all reasonably anticipated liabilities, expenses and losses
 of Purchaser in accordance with IFRS and there has been no change in accounting policies or practices of Purchaser since July 31,
 2020. The Purchaser does not have any outstanding indebtedness or any liabilities or obligations including any unfunded obligation
 under any Employee plan, whether accrued, absolute, contingent or otherwise as of the date of the applicable Purchaser Financial
 Statements other than those required to be set forth in such Purchaser Financial Statements by IFRS and as disclosed in writing to
 the Company on or substantially concurrently with the date of this Agreement. The Purchaser Financial Statements will present fairly,
 in all material respects, the consolidated financial position, financial performance and cash flows of the Purchaser for the dates
 and periods indicated therein (subject, in the case of any unaudited interim financial statements, to normal period-end adjustments)
 and reflect reserves required by IFRS in respect of all material contingent liabilities, if any, of the Purchaser on a consolidated
 basis. There has been no material change in the Purchaser's accounting policies since July 31, 2020.

(k) Purchaser
 is a taxable Canadian corporation for Canadian tax purposes and all Taxes due and payable or required to be collected or withheld
 and remitted, by Purchaser and Subco have been paid, collected or withheld and remitted as applicable. All tax returns, declarations,
 remittances and filings required to be filed by Purchaser and Subco have been filed with all appropriate Governmental Authorities
 and all such returns, declarations, remittances and filings are complete and accurate and no material fact or facts have been omitted
 therefrom which would make any of them misleading. Purchaser has not received notice of any examination of any tax return of Purchaser
 or Subco, and to the knowledge of Purchaser, no such examination is currently in progress by any Governmental Authorities and there
 are no issues or disputes outstanding with any Governmental Authorities respecting any Taxes that have been paid, or may be payable,
 by Purchaser or Subco. There are no agreements, waivers or other arrangements with any taxation authority providing for an extension
 of time for any assessment or reassessment of Taxes with respect to Purchaser and its Subsidiaries.

(l) The
 Purchaser maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are
 executed in accordance with management's general or specific authorization; and (ii) transactions are recorded as necessary
 to permit preparation of financial statements (including the Purchaser Financial Statements) in conformity with IFRS and to maintain
 accountability for assets.

(m) The
 Purchaser's current auditors who will audit the Purchaser Financial Statements are independent with respect to the Purchaser
 within the meaning of the rules of professional conduct applicable to auditors in Canada and there has never been a "reportable
 event" (within the meaning of National Instrument 51-102 – *Continuous Disclosure Obligations*) with the current
 or, to the knowledge of the Purchaser, any predecessor auditors of the Purchaser during the last three years.

(n) No
 Person is entitled to any pre-emptive or any similar rights to subscribe for any Purchaser Common Shares or other securities of Purchaser
 and no rights to acquire, or instruments convertible into or exchangeable for, any securities in the capital of Purchaser or Subco
 are outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) No
 legal or governmental actions, suits, judgments, investigations or proceedings are pending to which Purchaser or Subco, or to the
 knowledge of Purchaser, the directors or officers of Purchaser or Subco are a party, or to which the Purchaser Assets are subject
 and, to the knowledge of Purchaser, no such proceedings have been threatened against or are pending with respect to Purchaser or
 Subco, or with respect to the Purchaser Assets and neither Purchaser or Subco is subject to any judgment, order, writ, injunction,
 decree or award of any Governmental Authorities. Neither Purchaser, nor any of its Subsidiaries, nor any of the Purchaser Assets
 or properties, is subject to any material outstanding judgment, order, writ, injunction or decree applicable to Purchaser or any
 of its subsidiaries on a consolidated basis.

(p) Neither
 the Purchaser nor Subco is in violation of its organizational documents or in default, in any material respect, in the performance
 or observance of any obligation, agreement, covenant or condition contained in any material Contract to which it is a party or by
 which it or its property and the Purchaser Assets may be bound and all material Contracts to which the Purchaser is a party are in
 good standing in all respects and in full force and effect.

(q) Except
 as set forth in Section 3.1(q) of the Purchaser Disclosure Letter, the Purchaser owns or has all necessary rights to use (as currently
 used) all material property and assets owned or used that are necessary in the conduct of the business of the Purchaser as now conducted
 free and clear of any actual, pending or, to the knowledge of the Purchaser, threatened claims, liens, charges, options, set-offs,
 free-carried interests, royalties, encumbrances, security interests or other interests whatsoever other than such security interests,
 liens and encumbrances granted in the Ordinary Course of business by the Purchaser. Such assets comprise all of the assets, properties
 and rights used in or necessary to the conduct of the business of the Purchaser and are adequate and sufficient to conduct the business
 of the Purchaser.

(r) Except
 as set forth in Section 3.1(r) of the Purchaser Disclosure Letter, the Purchaser holds all material permits, licenses, approvals,
 consents, orders, markings, certificates and like authorizations necessary for it to own, lease and license its property and the
 Purchaser Assets and carry on its business, as now carried on as of the date of this Agreement, in each jurisdiction where such business
 is carried on, including, but not limited to, permits, licenses, approvals, consents, orders, certificates and like authorizations
 from Governmental Authorities(collectively, the "**Permits** ").

(s) Section
 3.1(s) of the Purchaser Disclosure Letter sets forth a complete and accurate list of all of the following that constitutes material
 Intellectual Property: (i) registered Intellectual Property, (ii) pending applications for registration of Intellectual Property,
 (iii) all computer software (other than commercially available, off-the-shelf software with a replacement cost or annual license
 fee of less than $10,000), and (iv) trade or corporate names and material unregistered trademarks and service marks. Except as would
 not, individually or in the aggregate, have a Material Adverse Effect with respect to the Purchaser, (i) to the knowledge of the
 Purchaser, (A) the conduct of the Purchaser's business as currently conducted does not infringe or otherwise violate any Person's
 registered Intellectual Property and (B) there is no claim of such infringement or other violation pending or to the knowledge of
 the Purchaser, threatened in writing, against the Purchaser, and (ii) to the knowledge of the Purchaser (A) no Person is infringing
 or otherwise violating any Intellectual Property owned by the Purchaser and (B) no claims of such infringement or other violation
 are pending or threatened in writing against any Person by the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The
 information technology equipment and related systems owned, used or held for use by the Purchaser ()"**Systems** ")
 are reasonably sufficient to operate the business of the Purchaser as currently conducted. During the last three (3) years, to the
 Purchaser's knowledge, there has been no unauthorized access, use, intrusion, or breach of security, or material failure, breakdown,
 performance reduction or other adverse event affecting any Systems that has caused any substantial disruption to the use of such
 Systems or the business of the Purchaser or any material loss or harm to the Purchaser or its personnel, property, or the Purchaser
 Assets.

(u) The
 Purchaser has complied in all material respects with all Laws and contractual and fiduciary obligations as to protection and security
 of personal data to which it is subject. The Purchaser has not received any written inquiries from or been subject to any audit or
 legal proceeding by any Governmental Authority regarding personal data. The Purchaser has complied with its policies and procedures
 as to collection, use, processing, storage and transfer of personal data. No legal proceeding alleging (i) a material violation of
 any Person's privacy rights or (ii) unauthorized access, use or disclosure of personal data has been asserted or threatened
 in writing to the Purchaser.

(v) Section
 3.1(v) of the Purchaser Disclosure Letter sets forth a complete and accurate list of the Purchaser Transaction Approvals. Except
 as set forth in Section 3.1(v) of the Purchaser Disclosure Letter, there are no third party consents or other approvals required
 to be obtained in order for the Purchaser to implement the Merger and complete the Acquisition.

(w) Except
 for those matters that, individually or in the aggregate, would not have a Material Adverse Effect with respect to the Purchaser,
 (i) the Purchaser is in compliance with all applicable Environmental Laws, which compliance includes obtaining, maintaining or complying
 with all Permits required under Environmental Laws for the operation of its business, (ii) there is no investigation, suit, claim
 or action relating to or arising under Environmental Laws (including, without limitation, relating to or arising from the Release,
 threatened Release or exposure to any Hazardous Material) that is pending or, to the knowledge of the Purchaser, threatened in writing
 against the Purchaser or any real property currently owned, operated or leased by the Purchaser and (iii) the Purchaser has not received
 any written notice of, or entered into any order, settlement, judgment, injunction or decree involving uncompleted, outstanding or
 unresolved liabilities or corrective or remedial obligations relating to or arising under Environmental Laws (including, without
 limitation, relating to or arising from the Release, threatened Release or exposure to any Hazardous Material).

(x) The
 Purchaser is not a party to or bound by any collective bargaining agreement and is not currently conducting negotiations with any
 labour union or employee association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Other
 than as disclosed in Section 3.1(y) of the Purchaser Disclosure Letter, the Purchaser does not own any real property. Section 3.1(y)
 of the Purchaser Disclosure Letter lists: (i) each lease, sublease, license or other agreement and any amendments or modifications
 thereto relating to all Leased Real Property (each a "**Lease**" and collectively, the "**Leases** "),
 true and complete copies of which have been made available to the Company, (ii) the street address of each parcel of Leased Real
 Property, (iii) the identity of the lessor, lessee and current occupant (if different from lessee) of each such parcel of Leased
 Real Property, and (iv) the current use of each such parcel of Leased Real Property. The Purchaser and each Subsidiary, as applicable,
 has a valid and enforceable leasehold interest under each Lease relating to Leased Real Property used by it. Each Lease is in full
 force and effect and is valid, binding and enforceable in accordance with its terms against the Purchaser or Subsidiary and each
 other party thereto. Neither the Purchaser nor any Subsidiary is in default nor has it received a notice of default or termination
 that remains outstanding under any Lease, and to the Purchaser's knowledge, no uncured default or breach on the part of the
 landlord exists under any Lease, and no event has occurred or circumstance exists which, with the delivery of notice, passage of
 time or both, would constitute such a breach or default or permit the termination, modification or acceleration of rent under any
 such Lease. The Leased Real Property comprise all of the real property used or intended to be used in, or otherwise related to, the
 business of the Purchaser or any of its Subsidiaries.

(z) Other
 than as disclosed in Section 3.1(z) of the Purchaser Disclosure Letter, no order, ruling or determination having the effect of suspending
 the sale or ceasing the trading in any securities of the Purchaser has been issued by any Governmental Authority and is continuing
 in effect and no proceedings for that purpose have been instituted or, to the knowledge of the Purchaser, are pending, contemplated
 or threatened by any Governmental Authority.

(aa) The
 Purchaser is in material compliance with all Laws respecting employment and employment practices, terms and conditions of employment,
 pay equity and wages and has not and is not engaged in any unfair labour practice and there has never been any material labour disruption.
 There is no action with respect to any employment-related matters, including payment of wages, salary or overtime pay, that has been
 asserted or is now pending or, to Purchaser's knowledge, threatened by or before any Governmental Authority with respect to
 any Persons currently or formerly employed (or engaged as an independent contractor) by, or who are or were applicants for employment
 with, Purchaser or any Subsidiary.

(bb) Other
 than as set forth in Section 3.1(bb) of the Purchaser Disclosure Letter, neither Purchaser nor Subco are party to any Contract, written
 or oral, involving an amount in excess of $50,000 other than this Agreement and the Loan Agreement.

(cc) Neither
 Purchaser nor, to the knowledge of Purchaser, any other party thereto is in default or breach of any Contract of Purchaser and, to
 the knowledge of Purchaser, there exists no condition, event or act which, with the giving of notice or lapse of time or both would
 constitute a default or breach under any Contract of Purchaser which would give rise to a right of termination on the part of any
 other party to such Contract or would otherwise have a Material Adverse Effect on the Purchaser. Purchaser has not received written,
 or to the knowledge of Purchaser, other notice of, any alleged breach of or alleged default under or dispute in connection with any
 Contract or of any intention of any party to any Contract of Purchaser to cancel, terminate or otherwise materially modify or not
 renew its relationship with the Purchaser.

(dd) Purchaser
 is not a party to any agreement, nor, to the knowledge of Purchaser, is there any shareholders agreement, pooling agreement, voting
 trust, or other contract which in any manner affects the ownership or voting control of any of the securities of Purchaser or Subco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) Other
 than as set forth in Section 3.1(ee) of the Purchaser Disclosure Letter, the Purchaser does not have any agreements, plans or practices
 relating to the payment of any management, consulting, service or other fees or any bonuses, pensions, share of profits or retirement
 allowance, insurance, health or other Employee benefits or any plan for retirement, stock purchase, profit sharing, stock option,
 deferred compensation, severance or termination pay, insurance, medical, hospital, dental, vision care, drug, sick leave, disability,
 salary continuation, legal benefits, unemployment benefits, vacation, incentive or otherwise contributed to, or required to be contributed
 to, by the Purchaser for the benefit of any current or former director, officer, Employee or consultant of the Purchaser (each, an
 "**Employee Plan** "). The Purchaser has made available to the Company the opportunity to review true and complete
 copies of documents, contracts and arrangements relating to the Employee Plans. The Employee Plans have been established, operated
 in the Ordinary Course and administered in all material respects in accordance with their terms and applicable Laws.

(ff) Except
 as set out in the Purchaser Disclosure Letter, none of the directors or officers of the Purchaser or any of its associates or Affiliates
 has any interest, direct or indirect, in any transaction with the Purchaser that materially affects the Purchaser and its Subsidiaries,
 taken as a whole.

(gg) Copies
 of the minute books and records of the Purchaser and Subco made available to the Company in connection with the due diligence investigation
 of the Purchaser and Subco for the period from July 31, 2018 to the date hereof are all of the minute books of the Purchaser and
 Subco and contain copies of all material organizational documents, bylaws, shareholder minutes, directors minutes and committee minutes
 of the Purchaser and Subco.

(hh) There
 is no Person acting or purporting to act at the request or on behalf of Purchaser that is entitled to any brokerage or finder's
 fee or other compensation in connection with the transactions contemplated by this Agreement.

(ii) The
 Payment Shares will, on Closing, be issued, and the Earn-Out Shares will, if issued in accordance with the terms and conditions of
 this Agreement, at the time of issuance be issued, in compliance with all applicable Laws (including Applicable Securities Laws).
 The Payment Shares, Earn-Out Shares and Resulting Issuer Common Shares issuable upon exercise of the Resulting Issuer Options and
 Company Warrants have been reserved for issuance by all necessary action on the part of Purchaser and, when issued by Purchaser and
 delivered by Purchaser, will be validly issued and will be outstanding as fully paid and non-assessable.

(jj) Purchaser
 is a "reporting issuer" and not on the list of reporting issuers in default in the provinces of British Columbia, Alberta
 and Ontario and, other than in respect of the Purchaser's failure to file the audited financial statements comprising the Purchaser
 Financial Statements, is in compliance, in all material respects, with the Applicable Securities Laws of such provinces and the applicable
 rules and regulations of the CSE. The issued and outstanding Purchaser Common Shares are listed and posted for trading on the CSE,
 and the Payment Shares, Earn-Out Shares, and Resulting Issuer Common Shares issuable upon exercise of the Resulting Issuer Options
 and Company Warrants when, and if, issued, will be listed and posted for trading on the CSE. Other than with respect to the Purchaser
 Financial Statements, no delisting, suspension of trading in, or cease trading order with respect to, the Purchaser Common Shares
 or any other securities of Purchaser is in effect, pending or, to the knowledge of Purchaser, threatened, and no legal proceedings
 have been instituted that might result in any such action being taken or order being made, and no written notification or other communication
 in writing from a securities regulator threatening to take any such action or make any such order has been received by Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) Other
 than the audited financial statements comprising the Purchaser Financial Statements, Purchaser has prepared and filed with the securities
 regulators in each of the jurisdictions where it is a "reporting issuer", and under its profile on System for Electronic
 Document Analysis and Retrieval, all material documents required to be filed by it under Applicable Securities Laws and the rules
 of the CSE. All documents and information included in the public record were, as of their respective dates, in compliance in all
 material respects with applicable Laws and did not, as of their respective dates, contain a misrepresentation (as such term is defined
 in the Securities Act (British Columbia) and its equivalent legislation in the United States), untrue statement of material fact
 or omit to state a material fact required to be stated therein or required in order to make the statements therein, in light of the
 circumstances under which they were made. As of the date of this Agreement (i) Purchaser has not filed any confidential material
 change report or similar document that is not generally available to the public with any securities regulator or any stock exchange,
 and (ii) there is no adverse "material change" (as such term is defined the *Securities Act* (British Columbia)
 and its equivalent legislation in the United States) or material fact in respect of Purchaser or the Purchaser Common Shares that
 has not been generally disclosed (within the meaning of Applicable Securities Laws).

(ll) The
 Purchaser has conducted all transactions, negotiations, discussions and dealings in full compliance with anti-bribery and anti-corruption
 Laws and regulations applicable in any jurisdiction in which they are located or conducting business. The Purchaser has not made
 any offer, payment, promise to pay or authorization of payment of money or anything of value to any government official, or any other
 person while having reasonable grounds to believe that all or a portion of such money or thing of value will be offered, given or
 promised, directly or indirectly, to a government official, for the purpose of (i) assisting the parties in obtaining, retaining
 or directing business; (ii) influencing any act or decision of a government official in his or its official capacity; (iii) inducing
 a government official to do or omit to do any act in violation of his or its lawful duty, or to use his or its influence with a government
 or instrumentality thereof to affect or influence any act or decision of such government or department, agency, instrumentality or
 entity thereof; or (iv) securing any improper advantage.

(mm) The
 operations of the Purchaser are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting
 requirements of the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related
 or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority (collectively, the "**Applicable Money Laundering Laws**") and no action, suit or proceeding by or before any Governmental Authority involving the Purchaser
 with respect to Applicable Money Laundering Laws is, to the knowledge of the Purchaser, pending or threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) The
 Purchaser's Cash balance as of the Closing Date will equal or exceed the Minimum Cash Balance.

No representation or warranty by Purchaser in this Agreement and no statement contained in the Purchaser Disclosure Letter or any certificate or other document furnished or to be furnished to the Company pursuant to this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein in any material respect as of the date they were provided, in light of the circumstances in which they are made, not misleading.

**ARTICLE 4**

**REPRESENTATIONS AND WARRANTIES OF THE COMPANY**

**Section 4.1 Representations and Warranties of the Company.**

The Company represents and warrants to and in favour of Purchaser and Subco as follows, and acknowledges that Purchaser and Subco are relying upon such representations and warranties in connection with the completion of the transactions contemplated herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company is a corporation duly incorporated and validly existing under the laws of the State of Nevada and has all requisite corporate
 power and corporate authority and is duly qualified and holds all Permits necessary or required to carry on its business as now conducted
 in each of the jurisdictions it carries on business and to own, lease or operate its assets and properties and neither the Company
 nor, to the knowledge of the Company, any other Person, has taken any steps or proceedings, voluntary or otherwise, requiring or
 authorizing the Company's dissolution or winding up, and the Company has all requisite corporate power and corporate authority
 to enter into this Agreement and to carry out its obligations hereunder.

(b) Other
 than as set forth in Section 4.1(b) of the Company Disclosure Letter, the Company has no direct or indirect Subsidiaries nor any
 investment in any Person or any agreement, option or commitment to acquire any such investment.

(c) The
 Company is conducting its business in compliance in all material respects with all applicable Laws and regulations of each jurisdiction
 in which it carries on business and has not received a notice of non-compliance, and, to the knowledge of the Company, there are
 no facts that would give rise to a notice of material noncompliance with any such Laws and regulations. Each of the Company and its
 Subsidiaries and their respective Affiliates hold the applicable Cannabis Licenses required to conduct their present business. Each
 Cannabis License is in full force and effect in all material respects and has not been revoked, suspended, cancelled, rescinded,
 terminated, modified and has not expired. There are no pending or, to the Company's knowledge, threatened actions by or before
 any Governmental Authority to revoke, suspend, cancel, rescind, terminate and/or materially adversely modify any Cannabis License.
 True and complete copies of all of Cannabis Licenses held by the Company or its Subsidiaries have been made available to the Purchaser
 and are set forth in Section 4.1(c) of the Company Disclosure Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Other
 than as set forth in Section 4.1(d) of the Company Disclosure Letter, no consent, approval, order or authorization of, or registration,
 declaration or filing with, any third party or Governmental Authority is required by or with respect to the Company in connection
 with the execution and delivery of and the performance by the Company of its obligations under this Agreement, the Ancillary Agreements
 and the consummation by the Company of the transactions contemplated hereunder and thereunder.

(e) Since
 January 1, 2021 (i) the Company and its Subsidiaries have operated their respective businesses in the Ordinary Course, and (ii) there
 has not been any Material Adverse Change with respect to the Company.

(f) Each
 of the execution and delivery of this Agreement and the applicable Ancillary Agreements, the performance by the Company of its obligations
 hereunder and thereunder and the consummation of the transactions contemplated in this Agreement and the applicable Ancillary Agreements
 do not and will not conflict with or result in a material breach or violation of any of the terms or provisions of, or constitute
 a material default under (whether after notice or lapse of time or both), (i) the Articles of Incorporation, Bylaws or resolutions
 of the Company which are in effect at the date hereof; or (ii) any material mortgage, note, indenture, contract, agreement, joint
 venture, partnership, instrument, lease or other document to which the Company is a party or by which it is bound.

(g) This
 Agreement has been duly authorized and executed by the Company and constitutes a valid and binding obligation of the Company enforceable
 against the Company in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
 moratorium and other Laws relating to or affecting the rights of creditors generally and except as limited by the application of
 equitable principals when equitable remedies are sought, and by the fact that rights to indemnity, contribution and waiver, and the
 ability to sever unenforceable terms, may be limited by applicable Law.

(h) Other
 than as set forth in Section 4.1(h) of the Company Disclosure Letter, other than this Agreement, the Company is not currently party
 to any binding agreement in respect of: (i) the purchase of any material property or assets or any interest therein or the sale,
 transfer or other disposition of any material property or assets or any interest therein currently owned, directly or indirectly,
 by the Company whether by asset sale, transfer of shares or otherwise in excess of $100,000 in the aggregate; or (ii) the change
 of control of the Company (whether by sale or transfer of shares or sale of all or substantially all of the property or assets of
 the Company or otherwise).

(i) Other
 than as set forth in Section 4.1(i) of the Company Disclosure Letter, the Company Financial Statements are based on the books and
 records of the Company, and fairly present, in all material respects, the financial condition of the Company as of the respective
 dates they were prepared and the results of the operations of the Company for the periods indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Other
 than as set forth in Section 4.1(j) of the Company Disclosure Letter, all Taxes due and payable shown to be due on the Company's
 tax returns or required to be collected or withheld and remitted, by the Company have been paid, collected or withheld and remitted
 as applicable. Other than as set forth in Section 4.1(j) of the Company Disclosure Letter, all tax returns, declarations, remittances
 and filings required to be filed by the Company have been filed with all appropriate Governmental Authorities and all such returns,
 declarations, remittances and filings are complete and accurate and no material fact or facts have been omitted therefrom which would
 make any of them misleading. Other than as set forth in Section 4.1(j) of the Company Disclosure Letter, to the knowledge of the
 Company, no examination of any tax return of the Company is currently in progress by any Governmental Authorities and there are no
 issues or disputes outstanding with any Governmental Authority respecting any Taxes that have been paid, or may be payable, by the
 Company. There are no agreements, waivers or other arrangements with any taxation authority providing for an extension of time for
 any assessment or reassessment of Taxes with respect to the Company.

(k) The
 Company maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are
 executed in accordance with management's general or specific authorization; and (ii) transactions are recorded as necessary
 to permit preparation of financial statements in conformity with IFRS and to maintain accountability for assets.

(l) The
 Company Auditors who will audit the audited consolidated financial statements of the Company for the financial year ended December
 31, 2021 will be independent public accountants for the purposes of IFRS.

(m) The
 authorized share capital of the Company is 250,000,000 Company Common Shares. The number of Company Common Shares issued and outstanding
 as of the date hereof is set out in Section 4.1(m) of the Company Disclosure Letter, each of which is outstanding as fully paid and
 non-assessable. Except as set forth in Section 4.1(m) of the Company Disclosure Letter, there are no options, warrants or other rights,
 shareholder rights plans, agreements or commitments of any character whatsoever requiring the issuance, sale or transfer by the Company
 of any shares of the Company or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing a right
 to acquire, any shares of the Company as of the date hereof. The number of Company Common Shares issued and outstanding as of the
 Effective Time will be set out in the Company Capitalization Spreadsheet, each of which will be outstanding as fully paid and non-assessable.
 Except as set forth in the Company Capitalization Spreadsheet, there will be no options, warrants or other rights, shareholder rights
 plans, agreements or commitments of any character whatsoever requiring the issuance, sale or transfer by the Company of any shares
 of the Company or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing a right to acquire,
 any shares of the Company as of the Effective Time.

(n) Except
 as set forth in Section 4.1(n) of the Company Disclosure Letter, the Company is not aware of any legal or governmental actions, suits,
 judgments, investigations or proceedings to which the Company, or to the knowledge of the Company, the directors or officers of the
 Company are a party or to which the property and assets of the Company is subject and, to the knowledge of the Company, no such proceedings
 have been threatened against or are pending with respect to the Company, or with respect to its property and assets, and the Company
 is not subject to any judgment, order, writ, injunction, decree or award of any Governmental Authority. Neither the Company nor any
 of its Subsidiaries, nor any of its assets or properties, is subject to any material outstanding judgment, order, writ, injunction
 or decree applicable to the Company or any of its Subsidiaries on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The
 Company is not in violation of its organizational documents or, to the Company's knowledge, in default, in any material respect,
 in the performance or observance of any obligation, agreement, covenant or condition contained in any material Contract to which
 it is a party or by which it or its property and assets may be bound and all material Contracts to which the Company is a party are
 in good standing in all respects and in full force and effect, other than the Company is currently in arrears in remitting rental
 payments to its landlord.

(p) Other
 than as set forth in Section 4.1(p) of the Company Disclosure Letter, the Company owns or has all necessary rights to use (as currently
 used) all material property and assets owned or used that are necessary in the conduct of the business of the Company as now conducted
 free and clear of any actual, pending or, to the knowledge of the Company, threatened claims, liens, charges, options, set-offs,
 free-carried interests, royalties, encumbrances, security interests or other interests whatsoever other than such security interests,
 liens and encumbrances granted in the Ordinary Course of business by the Company. Such assets comprise all of the assets, properties
 and rights used in and necessary to the conduct of the business of the Company and are adequate and sufficient to conduct the business
 of the Company.

(q) Except
 as set forth in Section 4.1(q) of the Company Disclosure Letter, the Company holds all material Permits necessary for it to own,
 lease and license its property and assets and carry on its business, as now carried on as of the date of this Agreement, in each
 jurisdiction where such business is carried on, including, but not limited to, Permits from Governmental Authorities.

(r) Section
 4.1(r) of the Company Disclosure Letter sets forth a complete and accurate list of all of the following that constitutes material
 Intellectual Property: (i) registered Intellectual Property, (ii) pending applications for registration of Intellectual Property,
 (iii) all computer software (other than commercially available, off-the-shelf software with a replacement cost or annual license
 fee of less than $10,000), and (iv) trade or corporate names and material unregistered trademarks and service marks. Except as would
 not, individually or in the aggregate, have a Material Adverse Effect with respect to the Company, (i) to the knowledge of the Company,
 (A) the conduct of the Company's business as currently conducted does not infringe or otherwise violate any Person's
 registered Intellectual Property and (B) there is no claim of such infringement or other violation pending or to the knowledge of
 the Company, threatened in writing, against the Company, and (ii) to the knowledge of the Company (A) no Person is infringing or
 otherwise violating any Intellectual Property owned by the Company and (B) no claims of such infringement or other violation are
 pending or threatened in writing against any Person by the Company.

(s) The
 Systems are reasonably sufficient to operate the business of the Company as currently conducted. During the last three (3) years,
 to the Company's knowledge, there has been no unauthorized access, use, intrusion, or breach of security, or material failure,
 breakdown, performance reduction or other adverse event affecting any Systems that has caused any substantial disruption to the use
 of such Systems or the business of the Company or any material loss or harm to the Company or its personnel, property, or other assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The
 Company has complied in all material respects with all Laws and contractual and fiduciary obligations as to protection and security
 of personal data to which it is subject. The Company has not received any written inquiries from or been subject to any audit or
 legal proceeding by any Governmental Authority regarding personal data. The Company has complied with its policies and procedures
 as to collection, use, processing, storage and transfer of personal data. No legal proceeding alleging (i) a material violation of
 any Person's privacy rights or (ii) unauthorized access, use or disclosure of personal data has been asserted or threatened
 in writing to the Company.

(u) Except
 for the Requisite Stockholder Vote required in connection with the Merger or as otherwise set forth in Section 4.1(u) in the Company
 Disclosure Letter, there are no third party consents or other approvals required to be obtained in order for the Company to complete
 the Acquisition.

(v) Except
 for those matters that, individually or in the aggregate, would not have a Material Adverse Effect with respect to the Company, (i)
 the Company is in compliance with all applicable Environmental Laws, which compliance includes obtaining, maintaining or complying
 with all Permits required under Environmental Laws for the operation of its business, (ii) there is no investigation, suit, claim
 or action relating to or arising under Environmental Laws (including, without limitation, relating to or arising from the Release,
 threatened Release or exposure to any Hazardous Material) that is pending or, to the knowledge of the Company, threatened in writing
 against the Company or any real property currently owned, operated or leased by the Company and (iii) the Company has not received
 any written notice of, or entered into any order, settlement, judgment, injunction or decree involving uncompleted, outstanding or
 unresolved liabilities or corrective or remedial obligations relating to or arising under Environmental Laws (including, without
 limitation, relating to or arising from the Release, threatened Release or exposure to any Hazardous Material).

(w) Other
 than as set forth in Section 4.1(w) of the Company Disclosure Letter, the Company is not a party to or bound by any collective bargaining
 agreement and is not currently conducting negotiations with any labour union or employee association.

(x) The
 Company does not own any real property. Section 4.1(x) of the Company Disclosure Letter lists: (i) each Lease relating to all Leased
 Real Property, true and complete copies of which have been made available to the Purchaser, (ii) the street address of each parcel
 of Leased Real Property, (iii) the identity of the lessor, lessee and current occupant (if different from lessee) of each such parcel
 of Leased Real Property, and (iv) the current use of each such parcel of Leased Real Property. The Company and each Subsidiary, as
 applicable, has a valid and enforceable leasehold interest under each Lease relating to Leased Real Property used by it. Each Lease
 is in full force and effect and is valid, binding and enforceable in accordance with its terms against the Company or Subsidiary
 and each other party thereto. Neither the Company nor any Subsidiary is in default nor has it received a notice of default or termination
 that remains outstanding under any Lease, and to the Company's knowledge, no uncured default or breach on the part of the landlord
 exists under any Lease, and no event has occurred or circumstance exists which, with the delivery of notice, passage of time or both,
 would constitute such a breach or default or permit the termination, modification or acceleration of rent under any such Lease. The
 Leased Real Property comprise all of the real property used or intended to be used in, or otherwise related to, the business of the
 Company or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) No
 order, ruling or determination having the effect of suspending the sale or ceasing the trading in any securities of the Company has
 been issued by any Governmental Authority and is continuing in effect and no proceedings for that purpose have been instituted or,
 to the knowledge of the Company, are pending, contemplated or threatened by any Governmental Authority.

(z) Except
 for employment contracts entered into in the Ordinary Course of business and the agreements set forth in Section 4.1(z) in the Company
 Disclosure Letter, there are no agreements with holders of Company Common Shares to which the Company is a party or any pooling agreements,
 voting trusts or other similar agreements with respect to the ownership or voting of any of the securities of the Company.

(aa) The
 Company is in material compliance with all Laws respecting employment and employment practices, terms and conditions of employment,
 pay equity and wages and has not and is not engaged in any unfair labour practice and there has never been any material labour disruption.
 There is no action with respect to any employment-related matters, including payment of wages, salary or overtime pay, that has been
 asserted or is now pending or, to the Company's knowledge, threatened by or before any Governmental Authority with respect
 to any Persons currently or formerly employed (or engaged as an independent contractor) by, or who are or were applicants for employment
 with, the Company or any Subsidiary.

(bb) Other
 than Employee Plans established or entered into in the Ordinary Course of business by the Company, the Company does not have any
 Employee Plans. The Company has made available to Purchaser the opportunity to review true and complete copies of documents, contracts
 and arrangements relating to the Employee Plans. The Employee Plans have been established, operated in the Ordinary Course and administered
 in all material respects in accordance with their terms and applicable Laws.

(cc) Except
 as set forth in Section 4.1(cc) of the Company Disclosure Letter, neither the Company nor its Subsidiaries are party to any Contract,
 written or oral, involving an amount in excess of $50,000, other than this Agreement.

(dd) Neither
 the Company nor, to the knowledge of the Company, any party thereto is in default or breach of Contract of the Company and, to the
 knowledge of the Company, there exists no condition, event or act which, with the giving of notice or lapse of time or both would
 constitute a default or breach under any Contract of the Company which would give rise to a right of termination on the part of any
 other party to such Contract or would otherwise have a Material Adverse Effect on the Company. The Company has not received written,
 or to the knowledge of the Company, other notice of, any alleged breach of or alleged default under or dispute in connection with
 any Contract or of any intention of any party to any Contract of the Company to cancel, terminate or otherwise materially modify
 or not renew its relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) Except
 as set out in Section 4.1(ee) Company Disclosure Letter, none of the directors or officers of the Company or any of its associates
 or Affiliates has any interest, direct or indirect, in any transaction with the Company that materially affects the Company and its
 Subsidiaries, taken as a whole.

(ff) Copies
 of the minute books and records of the Company made available to Purchaser in connection with the due diligence investigation of
 the Company for the period from the date of incorporation to the date hereof are all of the minute books of the Company and contain
 copies of all material organizational documents, bylaws, shareholder minutes, directors minutes and committee minutes of the Company.

(gg) Except
 as set out in Section 4.1(gg) of the Company Disclosure Letter, there is no Person acting or purporting to act at the request or
 on behalf of the Company that is entitled to any brokerage or finder's fee or other compensation in connection with the transactions
 contemplated hereby.

(hh) The
 Company has conducted all transactions, negotiations, discussions and dealings in full compliance with anti-bribery and anti-corruption
 Laws and regulations applicable in any jurisdiction in which they are located or conducting business. The Company has not made any
 offer, payment, promise to pay or authorization of payment of money or anything of value to any government official, or any other
 person while having reasonable grounds to believe that all or a portion of such money or thing of value will be offered, given or
 promised, directly or indirectly, to a government official, for the purpose of (i) assisting the parties in obtaining, retaining
 or directing business; (ii) influencing any act or decision of a government official in his or its official capacity; (iii) inducing
 a government official to do or omit to do any act in violation of his or its lawful duty, or to use his or its influence with a government
 or instrumentality thereof to affect or influence any act or decision of such government or department, agency, instrumentality or
 entity thereof; or (iv) securing any improper advantage.

(ii) The
 operations of the Company are and have been conducted at all times in compliance with Applicable Money Laundering Laws and no action,
 suit or proceeding by or before any Governmental Authority involving the Company with respect to Applicable Money Laundering Laws
 is, to the knowledge of the Company, pending or threatened.

(jj) The
 Company is not an "investment company" pursuant to the United States Investment Company Act of 1940, as amended.

(kk) Except
 for the representations and warranties contained in this Article 4 and the Company Disclosure Letter, the Company makes no other
 express or implied representation or warranty and hereby disclaims any such representations or warranties.

**ARTICLE 5**

**STOCKHOLDERS REPRESENTATIVE**

**Section 5.1 Stockholders Representative.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Stockholders Representative is hereby appointed, authorized and empowered to act as the representative of the Company Stockholders
 for all purposes hereunder and for the benefit of the Company Stockholders, as the exclusive agent and attorney-in-fact to act on
 behalf of each of the Company Stockholders, in connection with and to facilitate the consummation of the Acquisition, which shall
 include the power, authority and discretion:

(i) to
 enter into amendments to this Agreement and to execute and deliver any Ancillary Agreements (with such modifications or changes therein
 as to which the Stockholders Representative, in its sole discretion, shall have consented) and to agree to such amendments or modifications
 thereto as the Stockholders Representative, in its sole discretion, determines to be desirable, in each case, whether before or after
 the Closing;

(ii) to
 execute and deliver such waivers and consents in connection with this Agreement and any Ancillary Agreements and the consummation
 of the Merger as the Stockholders Representative, in its sole discretion, may deem necessary or desirable;

(iii) to
 enforce and protect the rights and interests of the Company Stockholders (including the Stockholders Representative, in his capacity
 as a Company Stockholder) and to enforce and protect the rights and interests of the Stockholders Representative arising out of or
 under or in any manner relating to this Agreement, and each other agreement, document, instrument or certificate referred to herein
 or therein or the transactions provided for herein or therein, including the Ancillary Agreements, and to take any and all actions
 which the Stockholders Representative believes are necessary or appropriate under this Agreement for and on behalf of the Company
 Stockholders, including asserting or pursuing any Claim against Purchaser, Subco, Mergeco or any of their Affiliates or Representatives,
 consenting to, compromising or settling any such Claims, conducting negotiations with Purchaser, Subco, Mergeco or any of their Affiliates
 and Representatives, regarding such Claims, and, in connection therewith, to: (A) assert or institute any Claim; (B) investigate,
 defend, contest or litigate any Claim initiated by Purchaser, Subco, Mergeco or any other Person, or by any federal, state or local
 Governmental Authority against the Stockholders Representative or against all Company Stockholders, and receive process on behalf
 of any or all such Company Stockholders in any such Claim and compromise or settle on such terms as the Stockholders Representative
 shall determine to be appropriate, and give receipts, releases and discharges with respect to, any such Claim; (C) file any proofs
 of debt, claims and petitions as the Stockholders Representative may deem advisable or necessary; and (D) file and prosecute appeals
 from any decision, judgment or award rendered in any such Claim, it being understood that the Stockholders Representative shall not
 (x) have any obligation to take any such actions, and shall not have any liability for any failure to take any such actions and (y)
 shall not have the authority to investigate, defend, contest or litigate any Claim (or compromise or settlement thereof) made against
 one or more Company Stockholders that is not made against all such Persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to
 refrain from enforcing any right of the Company Stockholders or the Stockholders Representative arising out of or under or in any
 manner relating to this Agreement, or any other agreement, instrument or document in connection with the foregoing; provided, however,
 that no such failure to act on the part of the Stockholders Representative, except as otherwise provided in this Agreement, shall
 be deemed a waiver of any such right or interest by the Stockholders Representative or by such Company Stockholder unless such waiver
 is in writing signed by the waiving party or by the Stockholders Representative;

(v) to
 make, execute, acknowledge and deliver all such other agreements, guarantees, orders, receipts, endorsements, notices, requests,
 instructions, certificates, stock powers, letters and other writings, and, in general, to do any and all things and to take any and
 all action that the Stockholders Representative, in its sole and absolute discretion, may consider necessary or proper or convenient
 in connection with or to implement the Merger, and all other agreements, documents or instruments referred to herein or therein or
 executed in connection herewith and therewith; and

(vi) to
 engage such counsel, experts and other agents and consultants as it shall deem necessary in connection with exercising its powers
 and performing its function hereunder and (in the absence of bad faith on the part of the Stockholders Representative) to conclusively
 rely on the opinions and advice of such Persons.

(b) This
 Article 5 and all of the indemnities, immunities and powers granted to the Stockholders Representative hereunder and under this Agreement
 shall survive the Closing Date or any termination of this Agreement in accordance with its terms.

(c) Except
 as provided for herein, Purchaser, Subco and Mergeco shall have the right to rely upon all actions taken or omitted to be taken by
 the Stockholders Representative pursuant to this Agreement and any Ancillary Agreement, as applicable, all of which actions or omissions
 shall be legally binding upon the Company Stockholders.

(d) The
 grant of authority provided for herein (i) is coupled with an interest and shall be irrevocable and survive the death, incompetency,
 bankruptcy or liquidation of any Company Stockholder, and (ii) shall survive the consummation of the Merger.

(e) Upon
 the written request of any Company Stockholder, the Stockholders Representative shall provide such Person with an accounting of all
 monies or proceeds (including the Payment Shares and Earn-Out Shares) received and distributed by the Stockholders Representative,
 in its capacity as the Stockholders Representative, and shall provide such Person with such other reasonable information regarding
 the Stockholders Representative's actions and its other costs and expenses, in its capacity as the Stockholders Representative,
 as such Person may reasonably request.

**Section 5.2 Indemnification of Stockholders Representative.**

Except as contemplated pursuant to Section 5.1(e), the Stockholders Representative shall not be entitled to any fee, commission or other compensation for the performance of its services hereunder, but shall be entitled to the payment by the Company Stockholders of all its expenses incurred as the Stockholders Representative. In connection with this Agreement, and any Ancillary Agreement, and in exercising or failing to exercise all or any of the powers conferred upon the Stockholders Representative hereunder (i) the Stockholders Representative shall incur no responsibility whatsoever to any Company Stockholder by reason of any error in judgment or other act or omission performed or omitted hereunder or in connection with any such Ancillary Agreement, excepting only responsibility for any act or failure to act which represents gross negligence or willful misconduct, and (ii) the Stockholders Representative shall be entitled to rely on the advice of counsel, public accountants or other independent experts experienced in the matter at issue, and any error in judgment or other act or omission of the Stockholders Representative pursuant to such advice shall in no event subject the Stockholders Representative to liability to any Company Stockholders. Each of the Company Stockholders shall indemnify, pro rata based upon such Person's Pro Rata Share, the Stockholders Representative against all Losses, damages, liabilities, claims, obligations, costs and expenses, including reasonable attorneys', accountants' and other experts' fees and the amount of any judgment against them, of any nature whatsoever (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claims whatsoever), arising out of or in connection with any Claim or in connection with any appeal thereof, relating to the acts or omissions of the Stockholders Representative hereunder or otherwise in his capacity as the Stockholders Representative. The foregoing indemnification shall not apply in the event of any Claim which finally adjudicates the liability of the Stockholders Representative hereunder for its gross negligence or willful misconduct. In the event of any indemnification hereunder, upon written notice from the Stockholders Representative to the Company Stockholders as to the existence of a deficiency toward the payment of any such indemnification amount, each of the Company Stockholders shall promptly deliver to the Stockholders Representative full payment of his or her Pro Rata Share of the amount of such deficiency, in accordance with such Person's Pro Rata Share.

**ARTICLE 6**

**COVENANTS OF THE COMPANY**

The Company hereby covenants and agrees with Purchaser as follows until the earlier of the Effective Date or the termination of this Agreement in accordance with its terms:

**Section 6.1 Necessary Consents.**

The Company shall use its commercially reasonable efforts to obtain from the Company's directors, stockholders and all federal, state or other governmental or administrative bodies such approvals or consents (other than with respect to any BCC License) as are required to complete the transactions contemplated herein. Following the Closing, the Company and Purchaser shall, as promptly as possible, with respect to any BCC License, (a) make, or cause to be made, all filings and submissions required by an Governmental Authority to transfer ownership of such BCC License from the Company to the Purchaser and (ii) use commercially reasonable efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary in connection thereof.

**Section 6.2 Conduct of Business of the Company.**

The Company will operate its business in the Ordinary Course, and to the extent consistent therewith, the Company shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to preserve substantially intact its and its Subsidiaries' business organization, to keep available the services of its and its Subsidiaries' current officers and employees, to preserve its and its Subsidiaries' present relationships with customers, suppliers, distributors, licensors, licensees, and other Persons having business relationships with it. Without limiting the generality of the foregoing, between the date of this Agreement and the Effective Time, except as otherwise expressly permitted or required by this Agreement, as required by applicable Law or as set forth in Section 6.2 of the Company Disclosure Letter, the Company shall not, nor shall it permit any of its Subsidiaries to, without the prior written consent of the Purchaser (which consent shall not be unreasonably withheld, conditioned, or delayed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) split,
 combine, or reclassify any equity securities of the Company or any Subsidiary;

(b) repurchase,
 redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise acquire, any securities of the Company or any Subsidiary;

(c) declare,
 set aside, or pay any dividend or distribution (whether in cash, stock, property, or otherwise) in respect of, or enter into any
 Contract with respect to the voting of, any shares of its capital stock (other than dividends from its direct or indirect wholly-owned
 Subsidiaries);

(d) issue,
 sell, pledge, dispose of or encumber any debt, equity or other securities, except the issuance of Company Common Shares upon the
 exercise of any outstanding Company Options, Company Warrants, Company Debentures or other convertible securities outstanding on
 the date hereof;

(e) borrow
 money or incur any indebtedness for money borrowed or guarantee any such indebtedness of another Person, issue or sell any debt securities
 or options, warrants, calls, or other rights to acquire any debt securities of the Company or any of its Subsidiaries, guarantee
 any debt securities of another Person, enter into any "keep well" or other Contract to maintain any financial statement
 condition of any other Person (other than any wholly-owned Subsidiary of it) or enter into any arrangement having the economic effect
 of any of the foregoing;

(f) make
 loans, advances, or other payments, excluding salaries and bonuses at current rates and routine advances to Employees of the Company
 for expenses incurred in the Ordinary Course or as contemplated pursuant to or in conjunction with the transactions contemplated
 herein;

(g) acquire,
 by merger, consolidation, acquisition of stock or assets, or otherwise, any business or Person or division thereof or make any loans,
 advances, or capital contributions to or investments in any Person;

(h) transfer,
 license, sell, lease, or otherwise dispose of (whether by way of merger, consolidation, sale of stock or assets, or otherwise) or
 pledge, encumber, mortgage, or otherwise subject to any lien, any assets, including the capital stock or other equity interests in
 any Subsidiary of the Company; *provided,* that the foregoing shall not prohibit the Company and its Subsidiaries from
 transferring, selling, leasing, or disposing of obsolete equipment or assets being replaced, in each case in the Ordinary
 Course;

(i) adopt
 or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization, or other reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter
 into or amend or modify in any material respect, or consent to the termination of (other than at its stated expiry date), any Contract
 that is material to the Company and its Subsidiaries or any lease with respect to material real estate or any other Contract or Lease
 that, if in effect as of the date hereof would constitute a material Contract or Lease with respect to material real estate hereunder;

(k) institute,
 settle, or compromise any Claim involving the payment of monetary damages by the Company or any of its Subsidiaries;

(l) declare
 or pay any dividends or distribute any of the Company's properties or assets to shareholders or otherwise dispose of any of
 the Company's properties or assets;

(m) alter,
 amend or propose to alter or amend the Company's articles or by-laws in any manner which may adversely affect the success of
 the transactions contemplated herein;

(n) except
 as otherwise permitted or contemplated herein, enter into any transaction or material Contract which is not in the Ordinary Course
 of business or engage in any business enterprise or activity materially different from that carried on by the Company as of the date
 hereof;

(o) abandon,
 allow to lapse, sell, assign, transfer, grant any security interest in otherwise encumber or dispose of any Intellectual Property,
 or grant any right or license to any Intellectual Property other than pursuant to non-exclusive licenses entered into in the Ordinary
 Course;

(p) provide
 any guarantee in respect of the obligations of any Person;

(q) except
 as may be contemplated pursuant to the Employment Agreement between Micah Anderson and the Company, increase any compensation for
 any director, officer, Employee or consultant of the Company;

(r) except
 in respect of capital and operating expenditures at the Company's cannabis manufacturing facility located in Arvin, California,
 incur any expense in excess of $150,000 individually or make any capital expenditures, other than in the Ordinary Course of business
 of the Company;

(s) terminate
 or modify in any material respect, or fail to exercise renewal rights with respect to, any material insurance policy;

(t) adopt
 or implement any stockholder rights plan or similar arrangement;

(u) organize
 any new Subsidiary (other than those that are wholly-owned) or acquire or agree to acquire by merging or consolidating with, or by
 purchasing a substantial portion of the assets of, or by any other manner, any business or any corporation, partnership, association
 or other business organization or division thereof;

(v) use
 funds from its treasury or the net proceeds received by the Company from the exercise of the Company Warrants to address or pay any
 tax liabilities of any Company Stockholder; or

(w) agree
 or commit to do any of the foregoing.

**Section 6.3 All Other Action.**

The Company shall cooperate fully with Purchaser and will use all reasonable commercial efforts to assist Purchaser in its efforts to implement the Merger, unless such cooperation and efforts would subject the Company to liability or would be in breach of applicable statutory or regulatory requirements.

**Section 6.4 Updated Company Disclosure Letter.**

No later than 5 Business Days prior to Closing, the Company shall deliver an updated Company Disclosure Letter to reflect any updates or changes to the Company Disclosure Letter between the date hereof and the Closing Date. Any new disclosures set forth in such updated Company Disclosure Letter shall not constitute an exception to the representations and warranties set forth in Article 4, shall not limit the rights of Purchaser under this Agreement for any breach by the Company of such representations and warranties and shall not have the effect of satisfying any of the conditions to obligations of Purchaser; *provided,* that (a) if (i) such disclosure by the Company is made in order to set forth any matter, fact or item first occurring or arising after the date hereof and (ii) Purchaser has the right to, but does not elect to, terminate this Agreement in accordance with Section 10.1, then from and after the Closing, the Purchaser shall be deemed to have irrevocably waived its right to indemnification under Article 11 with respect to such matter; or (b) if such disclosure is made in order to set forth any matter, fact or item first occurring or arising on or prior to the date hereof, then from and after the Closing, Purchaser shall have the right to indemnification pursuant to Article 11 with respect to such matter, and the applicable representation and warranty (and related schedule in the Company Disclosure Letter) shall be read for purposes of Article 11 as if such disclosure had not been made by the Company hereunder.

**Section 6.5 Company Capitalization Spreadsheet.**

Three (3) Business Days prior to Closing, the Company shall deliver the Company Capitalization Spreadsheet to the Purchaser.

**Section 6.6 Company Information Statement.**

The Company shall promptly, but in no event later than ten (10) Business Days after the date hereof arrange to provide to each Company Stockholder an information statement (as amended or supplemented, the "**Information Statement**"), for Company Stockholders to adopt this Agreement and approve the Merger. The Information Statement shall include information regarding (i) the Company and the Purchaser (the latter of which shall be furnished by the Purchaser no later than five (5) Business Days after the date hereof), (ii) the terms of the Merger and this Agreement, (ii) the notice of appraisal rights required pursuant to the NRS to Company Stockholders who may be entitled to elect appraisal rights under such Laws, (iv) the notice required by Section 92A.410 of the NRS, and (v) the written consent of the Company Stockholder and Accredited Investor Certification to be executed by the Company Stockholders who have not yet executed the Accredited Investor Certifications and written consent of the Company Stockholder.

**Section 6.7 Audited Company Financial Statements**

On or before 120 days following the Closing Date, the Company shall provide to the Purchaser audited financial statements of the Company for the periods ended December 31, 2021 and 2020, prepared in accordance with IFRS and, if any, unaudited interim financial statements of the Company most recently ended prior to the Closing Date prepared in accordance with IFRS.

**Section 6.8 Notices of Certain Events**

Subject to applicable Law, the Company shall notify the Purchaser and Subco, promptly of: (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement; and (c) any event, change, or effect between the date of this Agreement and the Effective Time which individually or in the aggregate causes or is reasonably likely to cause or constitute: (i) a material breach of any of its representations, warranties, or covenants contained herein, or (ii) the failure of any of the conditions set forth in Section 8.1 of this Agreement to be satisfied; provided that, the delivery of any notice pursuant to this Section 6.7 shall not cure any breach of, or noncompliance with, any other provision of this Agreement or limit the remedies available to the party receiving such notice.

**ARTICLE 7**

**COVENANTS OF PURCHASER**

Purchaser hereby covenants and agrees with the Company as follows until the earlier of the Effective Date or the termination of this Agreement in accordance with its terms, or as otherwise set forth in the applicable covenant:

**Section 7.1 Necessary Consents.**

Purchaser shall use its reasonable efforts to obtain from Purchaser's directors, shareholders, if applicable, and all federal, provincial, municipal or other governmental or administrative bodies such approvals or consents as are required to complete the transactions contemplated herein. Following the Closing, the Company and Purchaser shall, as promptly as possible, with respect to any BCC License, (a) make, or cause to be made, all filings and submissions required by an Governmental Authority to transfer ownership of such BCC License from the Company to the Purchaser and (ii) use commercially reasonable efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary in connection thereof.

**Section 7.2 Non-Solicitation.**

Purchaser hereby covenants and agrees until the Termination Date not to, directly or indirectly, solicit, initiate, knowingly encourage, cooperate with or facilitate (including by way of furnishing any non-public information or entering into any form of agreement, arrangement or understanding) the submission, initiation or continuation of any oral or written inquiries or proposals or expressions of interest regarding, constituting or that may reasonably be expected to lead to any activity, arrangement or transaction or propose any activities or solicitations in opposition to or in competition with the Acquisition, and without limiting the generality of the foregoing, not to induce or attempt to induce any other person to initiate any shareholder proposal or "takeover bid," exempt or otherwise, within the meaning of the *Securities Act* (British Columbia), for securities of Purchaser, nor to undertake any transaction or negotiate any transaction which would be or potentially could be in conflict with the Acquisition, including, without limitation, allowing access to any third party (other than its representatives) to conduct due diligence, nor to permit any of its officers or directors to do so, except as required by statutory obligations or in respect of which Purchaser board of directors determines, in its good faith judgment, after receiving advice from its legal advisors, that failure to recommend such alternative transaction to Purchaser shareholders would be a breach of its fiduciary duties under applicable law. In the event Purchaser or any of its Affiliates, including any of their officers or directors, receives any form of offer or inquiry in respect of any of the foregoing, Purchaser shall forthwith (in any event within one (1) Business Day following receipt) notify the Company of such offer or inquiry and provide the Company with such details as it may request.

**Section 7.3 Conduct of Business of the Purchaser**

Purchaser will operate its business in the Ordinary Course, and to the extent consistent therewith, the Purchaser shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to preserve substantially intact its and its Subsidiaries' business organization, to keep available the services of its and its Subsidiaries' current officers and employees, to preserve its and its Subsidiaries' present relationships with customers, suppliers, distributors, licensors, licensees, and other Persons having business relationships with it. Without limiting the generality of the foregoing, between the date of this Agreement and the Effective Time, except as otherwise expressly permitted or required by this Agreement, or as required by applicable Law, the Purchaser shall not, nor shall it permit any of its Subsidiaries to, without the prior written consent of the Company (which consent shall not be unreasonably withheld, conditioned, or delayed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) split,
 combine, or reclassify any equity securities of the Purchaser or any Subsidiary;

(b) repurchase,
 redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise acquire, any securities of the Purchaser or any Subsidiary;

(c) declare,
 set aside, or pay any dividend or distribution (whether in cash, stock, property, or otherwise) in respect of, or enter into any
 Contract with respect to the voting of, any shares of its capital stock (other than dividends from its direct or indirect wholly-owned
 Subsidiaries);

(d) issue,
 sell, pledge, dispose of or encumber any debt, equity or other securities, except in connection with or the transactions contemplated
 herein;

(e) borrow
 money or incur any indebtedness for money borrowed or guarantee any such indebtedness of another Person, issue or sell any debt securities
 or options, warrants, calls, or other rights to acquire any debt securities of the Purchaser or any of its Subsidiaries, guarantee
 any debt securities of another Person, enter into any "keep well" or other Contract to maintain any financial statement
 condition of any other Person (other than any wholly-owned Subsidiary of it) or enter into any arrangement having the economic effect
 of any of the foregoing;

(f) make
 any loans, advances or other payments other than payment of professional fees or expenses in connection with or ancillary to the
 transactions contemplated herein;

(g) acquire,
 by merger, consolidation, acquisition of stock or assets, or otherwise, any business or Person or division thereof or make any loans,
 advances, or capital contributions to or investments in any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) transfer,
 license, sell, lease, or otherwise dispose of (whether by way of merger, consolidation, sale
 of stock or assets, or otherwise) or pledge, encumber, mortgage, or otherwise subject to
 any lien, any assets, including the capital stock or other equity interests in any Subsidiary
 of the Purchaser; *provided, that* the foregoing shall not prohibit the Purchaser and
 its Subsidiaries from transferring, selling, leasing, or disposing of obsolete equipment
 or assets being replaced, in each case in the Ordinary Course;

(i) adopt
 or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization,
 or other reorganization;

(j) enter
 into or amend or modify in any material respect, or consent to the termination of (other
 than at its stated expiry date), any Contract that is material to the Purchaser and its Subsidiaries
 or any lease with respect to material real estate or any other Contract or Lease that, if
 in effect as of the date hereof would constitute a material Contract or Lease with respect
 to material real estate hereunder;

(k) institute,
 settle, or compromise any Claim involving the payment of monetary damages by the Purchaser
 or any of its Subsidiaries;

(l) declare
 or pay any dividends or distribute any of Purchaser's properties or assets to shareholders
 or otherwise of any of the Purchaser's properties or assets;

(m) alter,
 amend or propose to alter or amend Purchaser's notice of articles or articles in any
 manner which may adversely affect the success of the transactions contemplated herein;

(n) except
 as otherwise permitted or contemplated herein, enter into any transaction or material Contract
 which is not in the Ordinary Course of business or engage in any business enterprise or activity
 materially different from that carried on by Purchaser as of the date hereof;

(o) abandon,
 allow to lapse, sell, assign, transfer, grant any security interest in otherwise encumber
 or dispose of any Intellectual Property, or grant any right or license to any Intellectual
 Property other than pursuant to non-exclusive licenses entered into in the Ordinary Course;

(p) provide
 any guarantee in respect of the obligations of any person;

(q) increase
 any compensation for any director, officer, Employee or consultant of Purchaser;

(r) incur
 any expense in excess of $100,000 individually or in the aggregate or make any capital expenditures,
 other than in the Ordinary Course of business of the Purchaser;

(s) terminate
 or modify in any material respect, or fail to exercise renewal rights with respect to, any
 material insurance policy;

(t) adopt
 or implement any stockholder rights plan or similar arrangement;

(u) organize
 any new Subsidiary (other than those that are wholly-owned) or acquire or agree to acquire
 by merging or consolidating with, or by purchasing a substantial portion of the assets of,
 or by any other manner, any business or any corporation, partnership, association or other
 business organization or division thereof;

(v) use
 funds from its treasury or the net proceeds received by the Purchaser from the exercise of
 any outstanding convertible securities of the Purchaser to address or pay any tax liabilities
 of any shareholder of the Purchaser; or

(w) agree
 or commit to do any of the foregoing.

**Section 7.4 Reasonable Best Efforts.**

Purchaser and Subco shall cooperate fully with the Company and will use all reasonable best efforts to assist the Company in its efforts to consummate and make effective, and to satisfy all conditions to, as promptly as reasonably practicable (and in any event no later than the date that is 60 days following the date hereof), the Merger and the transactions contemplated by this Agreement, including*:* (i) the obtaining of all necessary Permits, waivers, and actions or nonactions from a Governmental Authority and the making of all necessary registrations, filings, and notifications (including filings with a Governmental Authority) and the taking of all steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any a Governmental Authority; (ii) the obtaining of all necessary consents or waivers from third parties; and (iii) the execution and delivery of any additional instruments necessary to consummate the Merger and to fully carry out the purposes of this Agreement, including without limitation the Supplemental Indenture. Purchaser and Subco shall, subject to applicable Law, promptly: (A) cooperate and coordinate with the Company in the taking of the actions contemplated by clauses (i), (ii), and (iii) immediately above; and (B) supply the Company with any information that may be reasonably required in order to effectuate the taking of such actions. Purchaser and Subco shall promptly inform the Company of any communication from any Governmental Authority regarding any of the transactions contemplated by this Agreement.

**Section 7.5 Notices of Certain Events**

Subject to applicable Law, Purchaser and Subco shall notify the Company, promptly of: (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement; and (c) any event, change, or effect between the date of this Agreement and the Effective Time which individually or in the aggregate causes or is reasonably likely to cause or constitute: (i) a material breach of any of its representations, warranties, or covenants contained herein, or (ii) the failure of any of the conditions set forth in Section 8.2 of this Agreement to be satisfied; provided that, the delivery of any notice pursuant to this Section 7.5 shall not cure any breach of, or noncompliance with, any other provision of this Agreement or limit the remedies available to the party receiving such notice.

**Section 7.6 Subco.**

Subco shall be validly subsisting and in good standing under the NRS immediately prior to the Merger. Purchaser covenants and agrees that Subco shall not carry on any business, shall not enter into any contracts, agreements, commitments, indentures or other instruments prior to the Closing Date other than as required to effect the Merger and shall be debt free as of the time of the Merger.

**Section 7.7 Stockholder Approval.**

Subject to and conditioned upon a determination at any time that approval of this Agreement, the Merger and the transaction contemplated hereby by the Purchaser's stockholders and/or the CSE is required at any time under applicable Law (including Applicable Securities Laws) or by the rules and regulations of the CSE, the Purchaser shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promptly
 notify the Company of such fact;

(b) as
 promptly as practicable after the date thereof, prepare with the assistance, cooperation
 and commercially reasonable efforts of the Company, and file with all applicable Governmental
 Authorities (including the CSE, as applicable) all necessary statements, documents, materials
 for the purpose of (i) soliciting proxies from Purchaser's stockholders for the approval
 of this Agreement and the Merger and (ii) approval of all Governmental Authorities (including
 the CSE) of the Agreement, the Merger and the issuance of all Resulting Issuer Common Shares
 (collectively, "**Purchaser Transaction Approvals** "); and

(c) take
 any and all reasonable and necessary actions required to satisfy the requirements of applicable
 Law, Applicable Securities Law and the regulations of the CSE in connection with the Purchaser
 Transaction Approvals, if any.

**Section 7.8 Warrant Exercise Price.**

The Purchaser covenants and agrees that it will not, for a period of 6 months following the Closing Date, reduce the exercise price of any outstanding warrants to purchase Purchaser Common Shares.

**Section 7.9 Further Assurances.**

Purchaser will take all action necessary to cause Subco to perform its obligations under this Agreement and to consummate the Merger on the terms and conditions set forth in this Agreement. At and after the Effective Time, the officers and directors of Mergeco shall execute and deliver, in the name and on behalf of Mergeco, any deeds, bills of sale, assignments, or assurances and to take and do, in the name and on behalf of Mergeco, any other actions and things to vest, perfect, or confirm of record or otherwise in Mergeco any and all right, title, and interest in, to and under any of the rights, properties, or assets of the Company acquired or to be acquired by Mergeco as a result of, or in connection with, the Merger.

**Section 7.10 Updated Purchaser Disclosure Letter.**

No later than 5 Business Days prior to Closing, the Purchaser shall deliver an updated Purchaser Disclosure Letter to reflect any updates or changes to the Purchaser Disclosure Letter between the date hereof and the Closing Date. Any new disclosures set forth in such updated Purchaser Disclosure Letter shall not constitute an exception to the representations and warranties set forth in Article 3, shall not limit the rights of the Company under this Agreement for any breach by the Purchaser of such representations and warranties and shall not have the effect of satisfying any of the conditions to obligations of Company; *provided,* that (a) if (i) such disclosure by the Purchaser is made in order to set forth any matter, fact or item first occurring or arising after the date hereof and (ii) the Company has the right to, but does not elect to, terminate this Agreement in accordance with Section 10.1, then from and after the Closing, the Company shall be deemed to have irrevocably waived its right to indemnification under Article 11 with respect to such matter; or (b) if such disclosure is made in order to set forth any matter, fact or item first occurring or arising on or prior to the date hereof, then from and after the Closing, Company shall have the right to indemnification pursuant to Article 11 with respect to such matter, and the applicable representation and warranty (and related schedule in the Purchaser Disclosure Letter) shall be read for purposes of Article 11 as if such disclosure had not been made by the Purchaser hereunder.

**ARTICLE 8**

**CONDITIONS PRECEDENT**

**Section 8.1 Conditions for the Benefit of Purchaser.**

The transactions contemplated herein are subject to the following conditions to be fulfilled or performed on or prior to the Closing Date, which conditions are for the exclusive benefit of Purchaser and may be waived, in whole or in part, by Purchaser in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Truth of Representations and Warranties.** With respect to the representations and warranties
 of the Company set forth in Article 4 (in each case as qualified by the Company Disclosure
 Letter and as updated pursuant to Section 6.4):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Company Fundamental Representations shall be true and correct in all respects as of the date
 of this Agreement and as of the Closing Date as if made on and as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 representations and warranties made by the Company in this Agreement that are qualified by
 materiality or the expression "Material Adverse Effect" shall be true and correct
 as of the date of this Agreement and as of the Closing Date as if made on and as of the Closing
 Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 other representations and warranties of the Company in this agreement shall be true and correct
 in all material respects as of the date of this Agreement and as of the Closing Date as if
 made on and as of the Closing Date,

in each case except to the extent that such representation and warranty expressly speaks as of an earlier date, in which case such representation and warranty shall be true and correct as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance of Obligations.** The Company shall have performed, fulfilled or complied with, in all
 material respects, all of its obligations, covenants and agreements contained in this Agreement
 and in any Ancillary Agreement to be fulfilled or complied with by the Company at or prior
 to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Approvals and Consents.** All required approvals, consents and authorizations of third parties in
 respect of the transactions contemplated herein, including without limitation all necessary
 shareholder and regulatory approvals (other than with respect to the Company's BCC
 Licenses, which may be obtained after Closing), shall have been obtained on terms acceptable
 to Purchaser acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Deliveries.** The Company shall deliver or cause to be delivered to Purchaser the closing documents
 set forth in Section 9.2 in a form satisfactory to Purchaser acting reasonably.

(e) **Proceedings.** All proceedings to be taken in connection with the transactions contemplated in this
 Agreement and any Ancillary Agreement shall be satisfactory in form and substance to Purchaser,
 acting reasonably, and Purchaser shall have received copies of all instruments and other
 evidence as it may reasonably request in order to establish the consummation or closing of
 such transactions and the taking of all necessary proceedings in connection therewith.

(f) **No Legal Action or Prohibition of Law.** There shall be no action or proceeding pending or
 threatened by any Person in any jurisdiction, or any applicable Laws proposed, enacted, promulgated
 or applied, to enjoin, restrict or prohibit any of the transactions contemplated by this
 Agreement or which could reasonably be expected to result in a Material Adverse Effect on
 the Company.

(g) **Securities Law Exemptions.** The issuance of all securities of the Resulting Issuer contemplated hereunder
 to be issued in connection with the Merger or otherwise pursuant to this Agreement shall
 be exempt from, or not subject to, the registration requirements of the U.S. Securities Act,
 and all applicable state securities Laws and shall be exempt from the prospectus requirements
 of Applicable Securities Laws in Canada either by virtue of exemptive relief from the securities
 authorities of each of the provinces of Canada or by virtue of exemptions under Applicable
 Securities Laws and shall not be subject to resale restrictions under Applicable Securities
 Laws.

(h) **Company Capitalization Spreadsheet**. The Purchaser shall have received the Company Capitalization
 Spreadsheet, in a form satisfactory to the Purchaser, acting reasonably.

**Section 8.2 Conditions for the Benefit of the Company.**

The transactions contemplated herein are subject to the following conditions to be fulfilled or performed on or prior to the Closing Date, which conditions are for the exclusive benefit of the Company and may be waived, in whole or in part, by the Company in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Truth of Representations and Warranties.** With respect to the representations and warranties
 of Purchaser set forth in Article 3 of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Purchaser Fundamental Representations shall be true and correct in all respects as of the
 Closing Date as if made on and as of the Closing Date;

(ii) the
 representations and warranties made by Purchaser in this Agreement that are qualified by
 materiality or the expression "Material Adverse Effect" shall be true and correct
 as of the Closing Date as if made on and as of the Closing Date; and

(iii) all
 other representations and warranties of Purchaser in this Agreement shall be true and correct
 in all material respects as if made on and as of the Closing Date, in each case, except to
 the extent that such representation and warranty expressly speaks as of an earlier date,
 in which case such representation and warranty shall be true and correct as of such earlier
 date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance of Obligations.** Purchaser shall have performed, fulfilled or complied with, in all material
 respects, all of its obligations, covenants and agreements contained in this Agreement and
 in any Ancillary Agreement to be fulfilled or complied with by Purchaser at or prior to the
 Closing Date.

(c) **No Material Adverse Change**. There shall have been no Material Adverse Change in the business,
 results of operations, assets, liabilities, financial condition or affairs of Purchaser or
 any subsidiaries of the Purchaser, or any change that would, individually or in the aggregate,
 reasonably be expected to constitute a Material Adverse Change.

(d) **Approvals and Consents.** All required approvals, consents and authorizations of third parties in
 respect of the transactions contemplated herein, including without limitation all necessary
 shareholder and regulatory approvals (other than with respect to the Company's BCC
 Licenses, which will be obtained after Closing), shall have been obtained on terms acceptable
 to the Company acting reasonably.

(e) **Issuance.** The Resulting Issuer Common Shares that are issued as consideration for the Company Common
 Shares at Closing shall be issued as fully paid and non-assessable Resulting Issuer Common
 Shares, free and clear of any and all encumbrances, liens, charges and demands of whatsoever
 nature;

(f) **Securities Law Exemptions.** The issuance of all securities of the Resulting Issuer contemplated hereunder
 to be issued in connection with the Merger or otherwise pursuant to this Agreement shall
 be exempt from, or not subject to, the registration requirements of the U.S. Securities Act,
 and all applicable state securities Laws and shall be exempt from the prospectus requirements
 of Applicable Securities Laws in Canada either by virtue of exemptive relief from the securities
 authorities of each of the provinces of Canada or by virtue of exemptions under Applicable
 Securities Laws and shall not be subject to resale restrictions under Applicable Securities
 Laws.

(g) **Deliveries.** Purchaser and Subco, as applicable shall deliver or cause to be delivered to the Company,
 the closing documents as set forth in Section 9.3 in a form satisfactory to the Company,
 acting reasonably.

(h) **Proceedings.** All proceedings to be taken in connection with the transactions contemplated in this
 Agreement and any Ancillary Agreement shall be satisfactory in form and substance to the
 Company, acting reasonably, and the Company shall have received copies of all instruments
 and other evidence as it may reasonably request in order to establish the consummation or
 closing of such transactions and the taking of all necessary proceedings in connection therewith.

(i) **No Legal Action or Prohibition of Law.** There shall be no action or proceeding pending or
 threatened by any Person in any jurisdiction, or any applicable Laws proposed, enacted, promulgated
 or applied, to enjoin, restrict or prohibit any of the transactions contemplated by this
 Agreement or which could reasonably be expected to result in a Material Adverse Effect on
 Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Requisite Stockholder Vote**. This Agreement and the Merger shall have been approved by the Requisite
 Stockholder Vote.

(k) **Purchaser Transaction Approvals**. All Purchaser Transaction Approvals, if any, shall have been obtained
 and the Company shall have received evidence satisfactory to the Company to that effect.

(l) **Cash Balance**. The Purchaser's Cash shall equal or exceed the Minimum Cash Balance.

(m) **Purchaser Financial Statements**. The Purchaser shall have filed (i) audited financial statements
 (including the related notes thereto) of the Company and its consolidated subsidiaries for
 the year ended July 31, 2021, (ii) unaudited income statement of the Company and its consolidated
 subsidiaries for the three months ended October 31, 2021, and (iii) unaudited statement of
 financial position of the Company and its subsidiaries dated October 31, 2021, such financial
 statements having been prepared in conformity with IFRS.

(n) **No Cease Trade Order**. The Purchaser shall have delivered evidence satisfactory to the Company
 that the Purchaser is not subject to any cease trade or other order of any applicable stock
 exchange or securities regulatory authority which may operate to prevent or restrict trading
 of any securities of the Purchaser, and no such order being pending before any applicable
 stock exchange or securities regulatory authority, whether as a result of any failure of
 the Company to file the financial statements pursuant to Section 8.2(m) or otherwise (including,
 for greater certainty, the management cease trade in effect as of the date of this Agreement).

(o) **Purchaser's Liabilities**. The Purchaser's liabilities as determined in accordance with IFRS,
 excluding lease payable, payroll payable, derivative liability and accounts payable shall
 not exceed $500,000.

(p) **Issuance of Purchaser Common Shares to Mark Smith**. Immediately prior to the Closing, the 15,000,000
 Purchaser Common Shares payable to Mark Smith in accordance with the terms of the Smith Employment
 Agreement shall have been issued and deposited in escrow with a third-party escrow agent
 pursuant to the terms of the Escrow Agreement.

**ARTICLE 9**

**CLOSING**

**Section 9.1 Time of Closing.**

The Closing of the transactions contemplated herein shall be held remotely via the electronic exchange of counterpart signature pages on the Closing Date, or in such other manner or at such other time or date as the parties may mutually agree upon in writing.

**Section 9.2 Company Closing Documents.**

On Closing, the Company shall deliver to Purchaser the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 certificate signed on behalf of the Company by a duly authorized officer certifying as to
 (i) the Company's Articles of Incorporation and Bylaws in effect immediately prior
 to Closing, (ii) the resolutions of the board of directors of the Company approving the Merger
 and the transactions contemplated hereby, (ii) receipt of the Requisite Stockholder Approval
 for the Merger and (iv) the incumbency of the officers and directors of the Company executing
 the documents contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 certificate signed on behalf of the Company by a duly authorized officer of the Company to
 the effect of Section 8.1(a) and Section 8.1(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) executed
 counterpart and delivery of the applicable Employment Agreements by Micah Anderson;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 certificate of good standing from the Secretary of State of Nevada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a
 Lock-Up Agreement, duly executed by each Company Key Personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Articles of Merger, duly executed by an authorized officer of the Company.

**Section 9.3 Purchaser's Closing Documents.**

On Closing, Purchaser shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evidence
 that the Payment Shares have been registered in the name of the Depositary in trust for
 the former holders of Company Common Shares;

(b) a
 certificate signed on behalf of Purchaser by a duly authorized officer of Purchaser certifying
 as to (i) Purchaser's constating documents in effect immediately prior to Closing,
 (ii) the resolutions of the board of directors of Purchaser approving the Merger and the
 transactions contemplated hereby, (iii) any Purchaser Transaction Approvals and (iv) the
 incumbency of the officers and directors of Purchaser executing the documents contemplated
 by this Agreement;

(c) a
 certificate signed on behalf of Subco by a duly authorized officer of Subco certifying as
 to (i) Subco's constating documents in effect immediately prior to Closing, (ii) the
 resolutions of the board of directors of Subco approving the Merger and the transactions
 contemplated hereby, and (iii) the incumbency of the officers and directors of Subco executing
 the documents contemplated by this Agreement;

(d) a
 certificate of status for Purchaser from the jurisdiction in which Purchaser is incorporated,
 dated as of a date not earlier than two (2) days prior to the Closing;

(e) a
 certificate of status for Subco from the jurisdiction in which Subco is incorporated, dated
 as of a date not earlier than two (2) days prior to the Closing;

(f) a
 certificate signed on behalf of the Purchaser by a duly authorized officer of the Purchaser
 to the effect of Section 9.2(a), (b) and (c);

(g) executed
 counterpart signature pages to the Employment Agreement of Micah Anderson;

(h) if
 required pursuant to CSE rules applicable to Purchaser, the consent of the CSE in respect
 of the Acquisition and the issuance of the Payment Shares, Resulting Issuer Options and Resulting
 Issuer Common Shares upon exercise of the Company Warrants as contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Articles of Merger, duly executed by an authorized officer of Subco;

(j) the
 Supplemental Indenture, duly executed by an authorized officer of Purchaser and Odyssey Trust
 Company, as both trustee and collateral agent;

(k) a
 certificate signed on behalf of the Purchaser by the Purchaser's Chief Financial Officer
 certifying (i) as to Purchaser's Cash balance, (ii) that the Purchaser's liabilities
 as determined in accordance with IFRS excluding lease payable, payroll payable, derivative
 liability and accounts payable do not exceed $500,000 and (iii) attaching evidence satisfactory
 to the Company as to such Cash balance and liabilities thereto;

(l) a
 Lock-Up Agreement, duly executed by each Purchaser Key Personnel; and

(m) such
 other certificates, documents, schedules, agreements, resolutions, consents, approvals, rulings
 or other instruments as may be reasonably requested by the Company or the Shareholder Representative
 in order to effectuate or evidence the transactions contemplated hereby.

**ARTICLE 10**

**TERMINATION**

**Section 10.1 Termination.**

This Agreement may be terminated at any time prior to Closing (the "**Termination Date**") in any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) written
 agreement of the Parties to terminate this Agreement;

(b) by
 written notice from Purchaser if there has been a breach of any representation, warranty,
 covenant or agreement contained in this Agreement on the part of the Company and (i) the
 Company has not cured such breach within ten (10) Business Days after Purchaser delivers
 written notice of such breach to the Company (*provided*, *however*, that, no cure
 period shall be required for a breach which by its nature cannot be cured) and (ii) if not
 cured within such ten (10) Business Day period and at or prior to the Closing, such breach
 would result in the failure of any of the conditions set forth in Section 8.1 to be satisfied,
 provided further, that Purchaser shall not have the right to terminate this Agreement pursuant
 to this Section 10.1(b) if the Purchaser or Subco is then in material breach of any representation,
 warranty, covenant, or agreement hereunder that would cause any condition set forth in Section
 8.2 not to be satisfied.

(c) by
 written notice from Company if (i) there has been a breach of any representation, warranty,
 covenant or agreement contained in this Agreement on the part of the Purchaser or Subco and
 (i) the Purchaser or Subco has not cured such breach within ten (10) Business Days after
 Company delivers written notice of such breach to the Purchaser or Subco (*provided*, *however*, that, no cure period shall be required for a breach which by its nature cannot
 be cured) and (ii) if not cured within such ten (10) Business Day period and at or prior
 to the Closing, such breach would result in the failure of any of the conditions set forth
 in Section 8.2 to be satisfied, provided further, that Company shall not have the right to
 terminate this Agreement pursuant to this Section 10.1(c) if the Company is then in material
 breach of any representation, warranty, covenant, or agreement hereunder that would cause
 any condition set forth in Section 8.1 not to be satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by
 written notice from either Purchaser or the Company if: (i) the Effective Time has not occurred
 on or before 5:00 p.m. (Vancouver time) on March 22, 2022 (*provided*, *however*,
 that the right to terminate this Agreement under this Section 10.1(d) shall not be available
 to any Party whose willful breach has been the cause of, or resulted in, the failure of the
 Effective Time to occur on or before such date), (ii) there shall be a final and non-appealable
 order of any Governmental Authority in effect preventing consummation of the Merger, (iii)
 there shall be any final and non-appealable Law or order enacted, promulgated or issued or
 deemed applicable to the Merger by any Governmental Authority that would make consummation
 of the Merger illegal, or (iv) if the Company Stockholders do not ratify and approve the
 Merger Agreement.

**Section 10.2 Notice and Effect of Termination.**

The Party desiring to terminate this Agreement pursuant to this Article 10 shall deliver written notice of such termination to each other Party specifying with particularity the reason for such termination, and any such termination in accordance with this Section 10.2 shall be effective immediately upon delivery of such written notice to the other party. If this Agreement is terminated pursuant to this Article 10, it will become void and of no further force and effect, with no liability on the part of any party to this Agreement (or any shareholder, director, officer, Employee, agent, or Representative of such party) to any other party hereto; *provided*, *however*, that Purchaser, Subco and the Company shall each remain liable for any breaches of this Agreement prior to its termination; and *provided further* that, the provisions of this Section 10.2, Article 12 and the applicable definitions set forth in Article 1 shall remain in full force and effect and survive any termination of this Agreement.

**ARTICLE 11**

**INDEMNIFICATION**

**Section 11.1 Indemnification by the Company Stockholders.**

Subject to the limits set forth in this Article 11, from and after the Closing, each Company Stockholder shall severally (according to such Company Stockholder's Pro Rata Share), and not jointly and severally, indemnify, defend and hold harmless Purchaser and each of Purchaser's Affiliates, officers, agents, representatives, directors, employees, successors and assigns (Purchaser and such Persons are collectively hereinafter referred to as the "**Purchaser Indemnified Persons**"), from and against any and all Losses that such Purchaser Indemnified Persons may suffer, sustain, incur or become subject to, arising out of, caused by or directly or indirectly relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 inaccuracy of any representation or warranty of the Company set forth in Article 4 of this
 Agreement (as supplemented or qualified by the Company Disclosure Letter) or in any certificate,
 agreement or other document delivered pursuant hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 breach or non-fulfillment of any covenant, undertaking, agreement or other obligation of
 the Company under this Agreement, or any certificate, agreement or other document delivered
 pursuant hereto.

**Section 11.2 Indemnification by Purchaser.**

Subject to the limits set forth in this Article 11, from and after the Closing, Purchaser shall indemnify, defend and hold harmless each of the Company Stockholders and each of their respective Affiliates, officers, controlling Persons, agents, representatives, directors, employees, successors and assigns (such Persons are hereinafter collectively referred to as the "**Company Stockholder Indemnified Persons**"), from and against any and all Losses that such Company Stockholder Indemnified Persons may suffer, sustain, incur or become subject to arising out of, caused by or directly or indirectly relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 inaccuracy of any representation or warranty of Purchaser set forth in Article 3 of this
 Agreement (as supplemented or qualified by the Purchaser Disclosure Letter) or in any certificate,
 agreement or other document delivered pursuant hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 breach or non-fulfillment of any covenant, undertaking, agreement or other obligation of
 Purchaser or Subco under this Agreement or in any certificate, agreement or other document
 delivered pursuant hereto.

**Section 11.3 Survival of Representations and Warranties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 representations and warranties contained in this Agreement (other than the Fundamental Representations),
 or in any certificate or document delivered pursuant hereto, and the right to indemnity pursuant
 to Section 11.1(a) and 11.2(a) in connection therewith, shall survive the Closing and shall
 remain in full force and effect thereafter for a period of twelve (12) months after the Closing
 Date (the **"Expiration Date**") and shall thereupon terminate and be of no
 further force or effect;

(b) The
 Fundamental Representations (and the right to indemnity pursuant to Section 11.1(a) and 11.2(a)
 in connection therewith) shall survive the Closing and shall remain in full force and effect
 until the date that is thirty (30) days after the expiration of the statute of limitations
 period applicable to the matters covered thereby;

(c) Notwithstanding
 the foregoing, none of the covenants or agreements contained in this Agreement or any agreement
 delivered pursuant hereto shall survive the Closing Date other than those which by their
 terms contemplate performance after the Closing Date, which shall survive the Closing in
 accordance with their terms; *provided, however*, that claims for indemnification pursuant
 to Section 11.1(b) and 11.2(b) in connection with breaches of such covenants or agreements
 to be performed prior to or at the Closing may be made at any time after the Closing until
 the Expiration Date.

(d) Each
 Indemnified Party shall give written notice to the respective Indemnifying Party of any claim
 for indemnification pursuant to this Article 11; *provided, however*, that failure to
 provide such notice shall not affect such Indemnified Party's right to indemnification
 hereunder unless and only to the extent the Indemnifying Party was actually prejudiced by
 such failure to deliver notice. Any claim for indemnification made in writing by the Indemnified
 Party on or prior to the expiration of the applicable survival period shall survive until
 such claim is finally and fully resolved.

**Section 11.4 Limitation on Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 as set forth in Section 11.4(e), no Purchaser Indemnified Person shall be entitled to any
 recovery pursuant to Section 11.1(a) and Section 11.1(b) unless and until the aggregate amount
 of Losses for which all Purchaser Indemnified Persons are otherwise entitled to indemnification
 pursuant to Section 11.1(a) and Section 11.1(b) exceeds $700,000.00 (the "**Basket** "),
 at which point the Purchaser Indemnified Persons shall be entitled to be indemnified for
 the aggregate amount of all Losses in excess of such Basket.

(b) At
 the time of recovery by a Purchaser Indemnified Person under any indemnification claim under
 Section 11.1(a) and Section 11.1(b), the maximum aggregate recovery by all Purchaser Indemnified
 Persons pursuant to Section 11.1(a) and Section 11.1(b) shall not exceed an amount equal
 to ten percent (10.0%) of the aggregate proceeds paid to the Company Stockholders under this
 Agreement, at the time of such recovery.

(c) Except
 as set forth in Section 11.4(e), no Company Stockholder Indemnified Person shall be entitled
 to any recovery pursuant to Section 11.2(a) and Section 11.2(b) unless and until the aggregate
 amount of Losses for which all Company Stockholder Indemnified Persons are otherwise entitled
 to indemnification pursuant to Section 11.2(a) and Section 11.2(b) exceeds the Basket, at
 which point the Company Stockholder Indemnified Persons shall be entitled to be indemnified
 for the aggregate amount of all Losses in excess of such Basket.

(d) Notwithstanding
 any provision herein to the contrary, but subject to limitations on recovery set forth in
 Section 11.6, the restrictions and limitations set forth in Sections 11.4(a), 11.4(b) and
 11.4(c) shall not be applicable to claims based upon Fraud or arising under any breach of
 a Fundamental Representation; *provided, however*, that in no event shall any Company
 Stockholder be liable hereunder for any amount in excess of such Company Stockholder's
 Pro Rata Share of sixty percent (60.0%) of the proceeds paid to such Company Stockholder
 pursuant to this Agreement.

(e) The
 amount of any and all Losses subject to indemnification pursuant to Section 11.4 or this
 Article 11 shall be determined net of any indemnity, contribution, insurance proceeds, tax
 benefit or other similar payment actually received or realized, as applicable, by such Indemnified
 Party with respect to such Losses (less the reasonable costs of recovery incurred by such
 Purchaser Indemnified Person in connection therewith).

(f) Purchaser
 shall, and shall cause each of its Affiliates (including Mergeco) to (i) use commercially
 reasonable efforts to mitigate any of its Losses (except for Losses relating to Taxes) that
 Purchaser Indemnified Persons may recover pursuant to this Article 11 solely to the extent
 required by common law, and (ii) notify all of their respective applicable insurance carriers
 of such possible Losses and diligently seek to recover all possible insurance coverage, payments
 and proceeds relating to such Losses under any and all policies of insurance held by them.
 The Company Stockholders shall, and shall cause each of their respective Affiliates to use
 commercially reasonable efforts to mitigate any of their Losses that the Company Stockholder
 Indemnified Persons may recover pursuant to this Article 11 solely to the extent required
 by common law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding
 any other provision of this Agreement, no Losses shall be recoverable under this Article
 11 or otherwise under this Agreement that constitute punitive or special damages or consequential
 or indirect damages, except in the case owed to a Third Party in connection with a Third
 Party Claim.

(h) Notwithstanding
 the rights of the Purchaser Indemnified Persons to recover Losses pursuant to Section 11.1,
 Purchaser and Mergeco are not aware of any facts or circumstances that would serve as the
 basis for a claim by any Purchaser Indemnified Person against Company or any Company Stockholder
 based upon a breach of any representation or warranty of the Company contained in this Agreement
 or breach of any of Company's covenants or agreement to be performed by it at or prior
 to Closing. Purchaser and Mergeco, on behalf of themselves and all Purchaser Indemnified
 Persons, shall be deemed to have waived in full any breach of any of Company's representations
 and warranties and any such covenants and agreements of which Purchaser and/or Mergeco has
 such awareness at the Closing.

**Section 11.5 Indemnification Procedure.**

Promptly after the incurrence of any Losses by any Purchaser Indemnified Person or Company Stockholder Indemnified Person (an "**Indemnified Party**"), or receipt by an Indemnified Party of notice of a Third Party Claim for which such Indemnified Party is entitled to indemnification pursuant to Section 11.1 or 11.2 (an "**Indemnifiable Claim**"), such Indemnified Party will give the Stockholders Representative written notice thereof, and if the Indemnified Party is a Company Stockholder Indemnified Party, the Stockholders Representative shall also provide the Purchaser with written notice thereof (an "**Indemnification Notice**"); *provided, however*, that delay or failure to so notify the Stockholders Representative and Purchaser, as applicable, shall only relieve the indemnifying Party (an "**Indemnifying Party**") of its obligations to the extent, if at all, that it is materially prejudiced by reasons of such delay or failure. Such Indemnification Notice by the Indemnified Party shall describe the Indemnifiable Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Stockholders Representative, in the case the Indemnified Party is a Purchaser Indemnified Person, and the Purchaser, in the case the Indemnified Party is a Company Stockholder Indemnified Person, as applicable, shall have a period of thirty (30) days within which to respond to such Indemnification Notice. If the Stockholders Representative or Purchaser, as applicable, accepts responsibility for the entirety of such Indemnifiable Claim within such thirty (30) day period, the Stockholders Representative or Purchaser, whichever is the Indemnifying Party as the case may be, shall be entitled to compromise or defend, at its own expense and by counsel chosen by it and reasonably satisfactory to the Indemnified Party, such matter. If the Stockholders Representative (on behalf of the Company Stockholder Indemnified Persons) or Purchaser (on behalf of the Purchaser Indemnified Persons), as applicable, rejects responsibility for the matter set forth in an Indemnification Notice in whole or in part or does not respond within thirty (30) calendar days after receiving such Indemnification Notice, the Indemnified Party shall be free to pursue, without prejudice to any of its rights hereunder, such remedies as may be available to the Indemnified Party under applicable Law at the Indemnifying Party's expense. The applicable Indemnified Party agrees to cooperate fully with the Stockholders Representative or Purchaser, as the case may be, and its respective counsel in the defense against any such Indemnifiable Claim. In any event, the Indemnified Party shall have the right to participate in a non-controlling manner and at its own expense in the defense of such Indemnifiable Claim. Neither the Stockholders Representative nor Purchaser shall enter into a settlement of such Indemnifiable Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld, conditioned or delayed), and until such consent is obtained the Stockholders Representative or Purchaser, as applicable, shall continue the defense of such Indemnifiable Claim. If a firm offer is made to settle an Indemnifiable Claim (i) that does not involve any admission of liability or wrongdoing by any Indemnified Party or its Affiliates or the creation of financial or other obligation on the part of the Indemnified Party or its Affiliates, (ii) provides for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Indemnifiable Claim, (iii) does not involve injunctive relief binding upon the Indemnified Party or any of its Affiliates, and (iv) such settlement does not encumber any of the material assets of any Indemnified Party or impose any restriction or condition that would apply to or materially affect any Indemnified Party or the conduct of any Indemnified Party's business, and the Indemnifying Party desires to accept and agree to such offer, the Stockholders Representative or Purchaser, as applicable, shall give written notice to that effect to the Indemnified Party. The Indemnified Party shall thereupon have the option of either consenting to such firm offer or assuming the defense of such Indemnifiable Claim. If the Indemnified Party fails to consent to such firm offer within thirty (30) calendar days after its receipt of such notice, and also fails to assume defense of such Indemnifiable Claim, the Stockholders Representative or Purchaser, as applicable, may settle the Indemnifiable Claim upon the terms set forth in such firm offer to settle such Indemnifiable Claim. If the Indemnified Party has assumed the defense pursuant to this Section 11.5, it shall not agree to any settlement without the written consent of the Stockholders Representative (in the case the Indemnified Party is a Purchaser Indemnified Person) or the Purchaser (in the case the Indemnified Party is a Company Stockholder Indemnified Person), in each case which such consent shall not be unreasonably withheld, conditioned or delayed. Notwithstanding any provisions in this Section 11.5 to the contrary, neither the Stockholders Representative (in the case the Indemnified Party is a Purchaser Indemnified Person) nor the Purchaser (in the case the Indemnified Party is a Company Stockholder Indemnified Person), shall be entitled to assume or continue control of the defense of any Indemnifiable Claim of the other Party if (i) such Indemnifiable Claim relates to or arises in connection with any governmental proceeding, action, indictment, allegation or investigation involving the Indemnified Party; (ii) such Indemnifiable Claim relates primarily to the Intellectual Property of such Indemnified Party; (iii) the Indemnified Party has been advised in writing by counsel that a reasonable likelihood exists of a conflict of interest between the Indemnifying Party and the Indemnified Party; or (iv) the Indemnifying Party fails to defend such Indemnifiable Claim in good faith. If the Indemnified Party controls the defense of any Indemnifiable Claim, the Indemnified Party shall be entitled to be reimbursed by the Indemnifying Party for its reasonable defense costs as such costs are incurred.

**Section 11.6 Remedies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 any provisions contained in this Agreement to the contrary, except as provided in Section
 5.2 (Indemnification of Stockholder Representative) and Section 12.10 (Specific Performance)
 or in respect of claims based upon Fraud, indemnification pursuant to the provisions of this
 Article 11 shall be the sole and exclusive remedy for any claim under this Agreement, the
 Merger or the other transactions contemplated by this Agreement.

(b) Notwithstanding
 any provisions contained in this Agreement, except in respect of claims based upon Fraud,
 the Purchaser's right to set-off under Section 11.9 shall be the Purchaser Indemnified
 Persons' sole and exclusive remedies for any such claim for indemnification under this
 Article 11.

(c) Any
 and all amounts payable to Purchaser Indemnified Persons as a result of any claim for indemnification
 based upon Fraud by the Company shall be paid directly by the Company Stockholders to Purchaser
 in accordance with their Pro Rata Share, (i) first by set-off of any consideration payable
 to such Company Stockholders pursuant to Section 11.9, and second, if such set-off is insufficient
 to satisfy the entire Losses suffered, (ii) by wire payment of immediately available funds
 for such excess.

(d) Any
 and all amounts payable to Purchaser Indemnified Persons as a result of any claim for indemnification
 for Fraud by such Company Stockholder shall be paid directly by the applicable Company Stockholder
 to Purchaser, by wire payment of immediately available funds. Notwithstanding any provisions
 contained in this Agreement to the contrary, no Company Stockholder shall be liable for the
 Fraud committed by any other Company Stockholder.

(e) The
 indemnification provisions set forth in this Article 11 are intended as a bargained- for
 contractual remedy for the Indemnified Parties, contain all of the terms and provisions that
 the Parties intend be applied in any connection with any claim or action for indemnification
 pursuant to this Article 11 and are intended to be enforced without regard to principles
 of breach of contract or other Law that would result in a broader or narrower remedy.

**Section 11.7 Adjustment to Purchase Price.**

To the extent permitted by applicable Law, any indemnification payment made pursuant to this Agreement shall be treated as an adjustment to the Purchase Price for Tax purposes.

**Section 11.8 Right to Bring Actions; No Contribution.**

Notwithstanding any provision in this Article 11 or elsewhere in this Agreement to the contrary, only the Stockholders Representative shall have the right, power and authority to commence any action, suit or proceeding after the Closing, by and on behalf of any or all Company Stockholders, against Purchaser or Mergeco or any other Indemnifying Party in connection with this Agreement and the transactions contemplated hereby and thereby, and in no event shall any Company Stockholder himself, herself or itself have the right to commence any action, suit or proceeding against Purchaser or Mergeco, or any other Indemnifying Party in such connection. By virtue of the adoption of this Agreement and the approval of the Merger by the Company Stockholders, each Company Stockholder (regardless of whether or not such Company Stockholder votes in favor of the adoption of the Agreement and the approval of the Merger, whether at a meeting or by written consent in lieu thereof) shall be deemed to have waived, and shall be deemed to have acknowledged and agreed that such Company Stockholder shall not have and shall not exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against Mergeco in connection with any indemnification obligation or any other liability to which he may become subject under or in connection with this Agreement or the related facts and circumstances underlying any such indemnification obligation or other liability.

**Section 11.9 Set-Off.**

In addition to all other remedies contemplated herein, subject to the limitations on recovery set forth in Article 11 (including, without limitation Section 11.4), Purchaser's exclusive right to payment under this Article 11 (except in the case of Fraud) shall be to set-off, deduct or retain any amount due or payable to Purchaser in respect of any claim (for indemnification) against the Company Stockholders under Section 11.1 by a reduction to any obligation of Purchaser to pay any unpaid Earn-Out Payment, in each case in accordance with each Company Stockholder's Pro Rata Share. In addition, Purchaser may carry-forward and set-off against a future Earn-Out Payment the amount of any Losses not deducted from a previous Earn-Out Payment. In no event, other than in the case of Fraud, shall Purchaser be entitled to claw-back any consideration actually paid to the Company Stockholders.

**ARTICLE 12**

**GENERAL**

**Section 12.1 Confidential Information; Press Release.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Confidential Information**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A
 Receiving Party will not disclose or use, and it will cause its Representatives not to disclose
 or use, any Confidential Information furnished, or to be furnished, by a Disclosing Party
 or its Representatives to the Receiving Party or its Representatives at any time or in any
 manner other than for purposes of evaluating and completing the transactions proposed in
 this Agreement, unless such information is known, or until such information becomes known,
 to the public without wrongful disclosure by any Disclosing Party or its Representatives,
 or such information is required, in legal counsel's written opinion, to be disclosed
 in legal or administrative proceedings; *provided*, *however*, that the Parties
 may disclose such information to their respective attorneys, accountants, consultants and
 other professionals to the extent necessary to obtain their services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If
 this Agreement is terminated, each Receiving Party will promptly return to the Disclosing
 Party or destroy any Confidential Information and any work product produced from such Confidential
 Information in its possession or in the possession of any of its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Press Releases**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No
 disclosure or announcement, public or otherwise, in respect of this Agreement or the transactions
 contemplated herein will be made by Purchaser or the Company or the respective Representatives
 without the prior agreement of the other Party as to timing, content and method, hereto,
 provided that the obligations herein will not prevent any party from making, after consultation
 with the other Party, such disclosure as its counsel advises is required by applicable law
 or the rules and policies of the CSE, and provided further, that the Party making the release,
 statement, announcement, or other disclosure shall use its reasonable best efforts to allow
 the other Party reasonable time to comment on such release, statement, announcement, or other
 disclosure in advance of such issuance.

(ii) Purchaser
 and the Company shall mutually agree upon and, as promptly as practicable after the execution
 of this Agreement, issue a press release announcing the execution of this Agreement (the
 "**Signing Press Release** "). The form, contents and timing of the Signing
 Press Release shall be subject to the review, comment and approval of the Stockholders Representative
 prior to its issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Purchaser
 and the Stockholders Representative shall mutually agree upon and, as promptly as practicable
 after the Closing, issue a press release announcing the consummation of the transactions
 contemplated by this Agreement (the "**Closing Press Release** "). The form,
 contents and timing of the Closing Press Release shall be subject to the review, comment
 and approval of the Stockholders Representative prior to its issuance.

**Section 12.2 Counterparts.**

This Agreement may be executed in several counterparts (by original or facsimile signature), each of which when so executed shall be deemed to be an original and each of such counterparts, if executed by each of the Parties, shall constitute a valid and enforceable agreement among the Parties.

**Section 12.3 Severability.**

In the event that any provision or part of this Agreement is determined by any court or other judicial or administrative body to be illegal, null, void, invalid or unenforceable, that provision shall be severed to the extent that it is so declared and the other provisions of this Agreement shall continue in full force and effect.

**Section 12.4 Applicable Law; Jurisdiction; Venue.**

This Agreement shall be governed by and construed in accordance with the laws of the State of California without giving effect to the conflict of law principles therein. Subject to Section 12.5, the Parties hereto irrevocably consent to the exclusive jurisdiction and venue of any court within San Diego County, State of California in connection with any matter based upon or arising out of this Agreement, the Merger or any other matters contemplated herein (and any federal court within the Southern District of California). Subject to Section 12.5, each Party agrees not to commence any legal proceedings related hereto except in such court. By execution and delivery of this Agreement, subject to Section 12.5, each Party hereto irrevocably and unconditionally submits to the exclusive jurisdiction of such courts and to the appellate courts therefrom solely for the purposes of disputes arising under this Agreement and not as a general submission to such jurisdiction or with respect to any other dispute, matter or claim whatsoever. The Parties irrevocably consent to the service of process out of any of the aforementioned courts in any such action or proceeding by the delivery of copies thereof by overnight courier to the address for such Party to which notices are deliverable hereunder. Any such service of process shall be effective upon delivery. Nothing herein shall affect the right to serve process in any other manner permitted by applicable Law. The Parties hereto hereby waive any right to stay or dismiss any action or proceeding under or in connection with this Agreement brought before the foregoing courts on the basis of (i) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, or that it or any of its property is immune from the above-described legal process, (ii) that such action or proceeding is brought in an inconvenient forum, that venue for the action or proceeding is improper or that this Agreement may not be enforced in or by such courts, or (iii) any other defense that would hinder or delay the levy, execution or collection of any amount to which any party hereto is entitled pursuant to any final judgment of any court having jurisdiction.

**Section 12.5 Arbitration.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 dispute, claim or controversy arising out of or relating to this Agreement, the Merger and
 any transactions contemplated hereby or the breach, termination, enforcement, interpretation
 or validity thereof, including the determination of the scope or applicability of this agreement
 to arbitrate, shall be determined by binding arbitration (the "**Arbitration** ")
 in San Diego County, California before one arbitrator. Any Arbitration will be held under
 the auspices of the San Diego County office of the Judicial Arbitration & Mediation Services
 ()"**JAMS** "), or any successor. The Arbitration shall be in accordance with
 its Comprehensive Rules & Procedures (or, to the extent available, the Streamlined Ruled
 & Procedures, and in no event any other rules); *provided, however*, that notwithstanding
 any provision to the contrary in the JAMS Rules, a court will resolve any dispute over the
 formation, enforceability, revocability, or validity of this Agreement or any portion thereof.
 The arbitrator (the "**Arbitrator**") shall be selected pursuant to JAMS rules
 or by mutual agreement of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Should
 any Party refuse or neglect to appear for, or participate in, the arbitration hearing, the
 Arbitrator shall have the authority to decide the dispute based upon whatever evidence is
 presented.

(c) Within
 thirty (30) days of the close of the Arbitration hearing, any Party will have the right to
 prepare, serve on the other party, and file with the Arbitrator, a brief. The Arbitrator
 shall render an award and written opinion, normally no later than thirty (30) calendar days
 from the date the Arbitration hearing concludes or the post-hearing briefs are received,
 whichever is later. The opinion shall include the factual basis for the award. Except as
 may be permitted or required by law neither a Party nor an Arbitrator may disclose the existence,
 content, or results of any arbitration hereunder without the prior written consent of all
 Parties. Any decision of the Arbitrator hereunder shall be deemed final, binding and non-appealable.

**Section 12.6 Disclosure Schedule**

Nothing in the Company Disclosure Letter or Purchaser Disclosure Letter, as applicable, is intended to broaden the scope of any representation or warranty contained in this Agreement or to create any covenant unless clearly specified to the contrary herein or therein. Inclusion of any item in the Company Disclosure Letter or Purchaser Disclosure Letter, as applicable, (a) does not represent a determination that such item is material nor shall it be deemed to establish a standard of materiality, (b) does not represent a determination that such item did not arise in the Ordinary Course, and (c) shall not constitute, or be deemed to be, an admission to any third party concerning such item. The Company Disclosure Letter and Purchaser Disclosure Letter, as applicable, include descriptions of instruments or brief summaries of certain aspects of the Company and the Purchaser and their respective business and operations. The descriptions and brief summaries are not necessarily complete and are provided therein to identify documents or other materials previously delivered or made available.

**Section 12.7 Successors and Assigns.**

This Agreement shall accrue to the benefit of and be binding upon each of the Parties hereto and their respective heirs, executors, administrators and assigns, provided that this Agreement shall not be assigned by any one of the Parties without the prior written consent of the other Parties.

**Section 12.8 Interpretation.**

The division of this Agreement into Articles, sections and subsections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation hereof. Schedules and other documents attached or referred to in this Agreement are an integral part of this Agreement.

**Section 12.9 Expenses.**

Each of the Parties hereto shall be responsible for its own costs and charges incurred with respect to the transactions contemplated herein including, without limitation, all costs and charges incurred prior to the date hereof and all legal and accounting fees and disbursements relating to preparing this Agreement or any Ancillary Agreement or otherwise relating to the transactions contemplated herein.

**Section 12.10 Specific Enforcement**

The Parties agree that immediate, extensive and irreparable damage would occur for which monetary damages would not be an adequate remedy in the event that any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached. Accordingly, the Parties agree that, if for any reason Purchaser or the Company or any other Person shall have failed to perform its obligations under this Agreement or otherwise breached this Agreement, then the Party seeking to enforce this Agreement against such nonperforming Party under this Agreement shall be entitled to specific performance and the issuance of immediate injunctive and other equitable relief without the necessity of proving the inadequacy of money damages as a remedy, and the Parties further agree to waive any requirement for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief, this being in addition to and not in limitation of any other remedy to which they are entitled at Law or in equity.

**Section 12.11 Further Assurances.**

Each of the Parties hereto will, without further consideration, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered such other documents, instruments of transfer, conveyance, assignment and assurances and secure all necessary consents and authorizations as may be reasonably requested by another Party and take such further action as the other may reasonably require to give effect to any matter provided for herein.

**Section 12.12 Entire Agreement.**

This Agreement and the schedules referred to herein constitute the entire agreement among the Parties hereto and supersede all prior communications, agreements, representations, warranties, statements, promises, information, arrangements and understandings, whether oral or written, express or implied, with respect to the subject matter hereof. None of the Parties hereto shall be bound or charged with any oral or written agreements, representations, warranties, statements, promises, information, arrangements or understandings not specifically set forth in this Agreement or in the schedules, documents and instruments to be delivered on the Closing Date pursuant to this Agreement. The Parties hereto further acknowledge and agree that, in entering into this Agreement and in delivering the schedules, documents and instruments to be delivered on the Closing Date, they have not in any way relied, and will not in any way rely, upon any oral or written agreements, representations, warranties, statements, promises, information, arrangements or understandings, express or implied, not specifically set forth in this Agreement or in such schedules, documents or instruments.

**Section 12.13 Notices.**

Any notice required or permitted to be given hereunder shall be in writing and shall be effectively given if (i) delivered personally, (ii) sent prepaid courier service or (iii) sent by registered or certified mail (return receipt requested) addressed as follows:

in the case of notice to Purchaser or Subco:

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attn: Brandon Kou

Email: brandon@icaninc.com

with a copy to (which shall not constitute notice):

McMillan LLP

1500-1055 West Georgia Street

Vancouver, British Columbia

V6E 4N7

Attn: Desmond Balakrishnan

Email: desmond.balakrishnan@mcmillan.ca

in the case of notice to the Company:

LEEF Holdings, Inc.

5580 La Jolla Boulevard #395

La Jolla, CA 92037

Attn: Micah Anderson

Email: micah@leefca.com

with a copy to (which shall not constitute notice):

Jackson Tidus, A Law Corporation

2030 Main Street, 12<sup>th</sup> Floor

Irvine, California 92614

Attn: Jason R. Wisniewski

Email: jwisniewski@jacksontidus.law

and

Cassels, Brock & Blackwell LLP

2100 Scotia Plaza, 40 King Street

West Toronto, Ontario

M5H 3C2

Attn: Jonathan Sherman

Email: jsherman@cassels.com

Any notice, designation, communication, request, demand or other document given or sent or delivered as aforesaid shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 delivered as aforesaid, be deemed to have been given, sent, delivered and received on the
 date of delivery; and

(b) if
 sent by mail as aforesaid, be deemed to have been given, sent, delivered and received on
 the fourth Business Day following the date of mailing, unless at any time between the date
 of mailing and the fourth Business Day thereafter there is a discontinuance or interruption
 of regular postal service, whether due to strike or lockout or work slowdown, affecting postal
 service at the point of dispatch or delivery or any intermediate point, in which case the
 same shall be deemed to have been given, sent, delivered and received in the ordinary course
 of the mail, allowing for such discontinuance or interruption of regular postal service.

**Section 12.14 Waiver.**

Any Party hereto which is entitled to the benefits of this Agreement may, and has the right to, waive any term or condition hereof at any time on or prior to the Closing Date, provided however that such waiver shall be evidenced by written instrument duly executed on behalf of such Party.

**Section 12.15 Amendments.**

No modification or amendment to this Agreement may be made unless agreed to by the Parties hereto in writing.

**Section 12.16 Remedies Cumulative.**

The rights and remedies of the Parties under this Agreement are cumulative and in addition to and not in substitution for any rights or remedies provided by law. Any single or partial exercise by any Party hereto of any right or remedy for default or breach of any term, covenant or condition of this Agreement does not waive, alter, affect or prejudice any other right or remedy to which such Party may be lawfully entitled for the same default or breach.

**Section 12.17 Currency.**

Unless otherwise indicated, all dollar amounts referred to in this Agreement are in the lawful money of the United States of America.

**Section 12.18 Number and Gender.**

In this Agreement, unless there is something in the subject matter or context inconsistent therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words
 in the singular number include the plural and such words shall be construed as if the plural
 had been used;

(b) words
 in the plural include the singular and such words shall be construed as if the singular had
 been used; and

(c) words
 importing the use of any gender shall include all genders where the context or the Party
 referred to so requires, and the rest of the sentence shall be construed as if the necessary
 grammatical and terminological changes had been made.

**Section 12.19 Time of Essence.**

Time shall be of the essence hereof.

**[Remainder of page intentionally blank]**

The Parties have executed this Agreement as of the first date written above.

---

| | |
|:---|:---|
| **ICANIC BRANDS COMPANY INC.** | **ICANIC BRANDS COMPANY INC.** |
| By: | /s/ Brandon Kou |
| Name: | Brandon Kou |
| Title: | Chief Executive Officer |

---

---

| | |
|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: | /s/ Micah Anderson |
| Name: | Micah Anderson |
| Title: | Chief Executive Officer |

---

---

| | |
|:---|:---|
| **ICANIC MERGER SUB, INC.** | **ICANIC MERGER SUB, INC.** |
| By: | /s/ Suhas Patel |
| Name: | Suhas Patel |
| Title: | President |

---

---

| |
|:---|
| **MICAH ANDERSON** |
| <br>(solely in its capacity as the Stockholders Representative) |

---

**[Signature Page to Merger Agreement]**

The Parties have executed this Agreement as of the first date written above.

---

| |
|:---|
| **ICANIC BRANDS COMPANY INC.** |
| By: |
| Name: |
| Title: |

---

---

| | |
|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: | /s/ Micah Anderson |
| Name: | Micah Anderson |
| Title: | Chief Executive Officer |

---

---

| |
|:---|
| **ICANIC MERGER SUB, INC.** |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| **MICAH ANDERSON** |
| <br>(solely in its capacity as the Stockholders Representative) |
| /s/ Micah Anderson |

---

**[Signature Page to Merger Agreement]**

**<u>EXHIBIT A</u>**

**FORM OF ACCREDITED INVESTOR CERTIFICATION**

(attached hereto)

**U.S. Representation Letter**

---

| | |
|:---|:---|
| **To:** | **Icanic Brands Company Inc. ("Icanic")** |
| **Re:** | **Merger Agreement dated January 21, 2022 (the "Merger Agreement") between Icanic and Leef Holdings, Inc. ("Leef")** |

---

Upon the completion of the acquisition by Icanic of Leef by way of a merger (the "**Merger**") contemplated by the Merger Agreement, Leef shall become a wholly-owned subsidiary of Icanic. Pursuant to the Merger, the undersigned holder of shares of common stock of Leef ("**Leef Shares**") will receive common shares of Icanic in exchange for the shareholder's Leef Shares (the "**Icanic Shares**").

This Representation Letter is to be executed and delivered by each holder of Leef Shares or securities convertible into Leef Shares (collectively, "**Leef Securities**") who is, or is acting for the account or benefit of, a U.S. Person or a person within the United States (each, an "**Leef U.S. Securityholder**").

The undersigned holder of Leef Securities covenants, represents and warrants to Icanic that:

(a) It
 has full right, power and authority to deliver its Leef Securities and this Representation
 Letter.

(b) It
 has such knowledge, skill and experience in financial, investment and business matters as
 to be capable of evaluating the merits and risks of an investment in the Icanic Shares or
 securities convertible into the common shares of Icanic (the "**Consideration Securities** ")
 to be issued to it pursuant to the Merger, and it is able to bear the economic risk of loss
 of its entire investment. To the extent necessary, the Leef U.S. Securityholder has retained,
 at his or her own expense, and relied upon, appropriate professional advice regarding the
 investment, tax and legal merits and consequences of the Merger Agreement and owning the
 Consideration Securities.

(c) Icanic
 has provided to it the opportunity to ask questions and receive answers concerning the terms
 and conditions of the Merger Agreement and it has had access to such information concerning
 Icanic as it has considered necessary or appropriate in connection with its investment decision
 to acquire the Consideration Securities, including disclosure document(s) furnished to the
 Leef U.S. Securityholder in connection with the solicitation of written consents of the shareholders
 of Leef to approve the Merger, and access to Icanic's public filings available on the
 Internet at <u>www.sedar.com,</u> and that any answers to questions and any request for information
 have been complied with to the Leef U.S. Securityholder's satisfaction.

(d) It
 is acquiring the Consideration Securities for its own account, for investment purposes only
 and not with a view to any resale or distribution and, in particular, it has no intention
 to distribute either directly or indirectly the Consideration Securities in the United States
 or to, or for the account or benefit of, a U.S. Person or a person in the United States;
 provided, however, that this paragraph shall not restrict the Leef U.S. Securityholder from
 selling or otherwise disposing of the Consideration Securities pursuant to registration thereof
 pursuant to the *United States Securities Act of 1933*, as amended, and the rules and
 regulations promulgated thereunder (the "**U.S. Securities Act**") and any
 applicable state securities laws or under an exemption from such registration requirements.

(e) The
 address of the Leef U.S. Securityholder set out in the signature block below is the true
 and correct principal address of the Leef U.S. Securityholder and can be relied on by Icanic
 for the purposes of state blue sky laws, and the Leef U.S. Securityholder is not an entity
 that has been formed for the specific purpose of purchasing or acquiring the Securities.

(f) It
 understands (i) the Consideration Securities have not been and will not be registered under
 the U.S. Securities Act or the securities laws of any state of the United States; and (ii)
 the offer and sale contemplated by the Merger Agreement is being made in reliance on an exemption
 from such registration requirements in reliance on Rule 506(b) of Regulation D and/or Section
 4(a)(2) of the U.S. Securities Act.

(g) The
 Leef U.S. Securityholder is an "accredited investor" as defined in Rule 501(a)
 of Regulation D under the U.S. Securities Act by virtue of meeting one of the criteria set
 forth in **Appendix A** hereto (**please initial on the appropriate lines on Appendix A**), which Appendix A forms an integral part hereof.

(h) The
 Leef U.S. Securityholder has not purchased the Consideration Securities as a result of any
 form of "general solicitation" or "general advertising" (as those
 terms are used in Regulation D under the U.S. Securities Act), including advertisements,
 articles, press releases, notices or other communications published in any newspaper, magazine
 or similar media or on the Internet, or broadcast over radio or television, or the Internet
 or other form of telecommunications, including electronic display, or any seminar or meeting
 whose attendees have been invited by general solicitation or general advertising.

(i) It
 understands and agrees that the Consideration Securities may not be acquired in the United
 States or by a U.S. Person or on behalf of, or for the account or benefit of, a U.S. Person
 or a person in the United States unless registered under the U.S. Securities Act and any
 applicable state securities laws or unless an exemption from such registration requirements
 is available.

(j) It
 acknowledges that it is not acquiring the Consideration Securities as a result of, and will
 not itself engage in, any "directed selling efforts" (as defined in Regulation
 S under the U.S. Securities Act) in the United States in respect of the Consideration Securities
 which would include any activities undertaken for the purpose of, or that could reasonably
 be expected to have the effect of, conditioning the market in the United States for the resale
 of the Consideration Securities.

(k) If
 it is entitled to receive share purchase warrants or options convertible into Icanic Shares
 under the Merger Agreement, it acknowledges and agrees that:

i) the securities of Icanic issuable upon exercise of such warrants or options convertible into Icanic Shares (the "**Icanic Underlying Securities**" and together with the Consideration Securities, the "**Securities**") have not been and will not be registered under the U.S. Securities Act or any state securities laws; and

ii) such warrants or options convertible into Icanic Shares may not be exercised in the United States, or for the account or benefit of a U.S. Person or a person in the United States, absent an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

(l) It
 acknowledges that the Securities will be "restricted securities", as such term
 is defined in Rule 144(a)(3) under the U.S. Securities Act, and may not be offered, sold,
 pledged, or otherwise transferred, directly or indirectly, without prior registration under
 the U.S. Securities Act and applicable state securities laws, and it agrees that if it decides
 to offer, sell, pledge or otherwise transfer, directly or indirectly, any of the Securities,
 it will not offer, sell or otherwise transfer, directly or indirectly, the Securities except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 Icanic;

(i) outside
 the United States in an "offshore transaction" meeting the requirements of Rule
 904 of Regulation S under the U.S. Securities Act, if available, and in compliance with applicable
 local laws and regulations;

(ii) in
 compliance with the exemption from the registration requirements under the U.S. Securities
 Act provided by Rule 144 thereunder, if available, and in accordance with any applicable
 state securities or "blue sky" laws; or

(iii) in
 a transaction that does not require registration under the U.S. Securities Act or any applicable
 state securities laws governing the offer and sale of securities,

and, in the case of each of (ii) and (iii) above, it has prior to such sale furnished to Icanic an opinion of counsel in form and substance reasonably satisfactory to Icanic stating that such transaction is exempt from registration under applicable securities laws and that the legend referred to in paragraph (m) below may be removed.

(m) The
 certificates representing the Securities, as well as all certificates issued in exchange
 for or in substitution of the foregoing, until such time as the same is no longer required
 under the applicable requirements of the U.S. Securities Act or applicable state securities
 laws and regulations, will bear, on the face of such certificate, the following legend:

"THE SECURITIES REPRESENTED HEREBY [*for Icanic options and warrants add:* AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. [*For Icanic Shares add:* DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.]"

provided, that if at the time of original issuance of the Securities, Icanic is a "foreign issuer" (as such term is defined in Rule 902(e) of Regulation S under the U.S. Securities Act), and are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation S and in compliance with Canadian local laws and regulations, the legend set forth above may be removed by providing to the registrar and transfer agent of Icanic:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 executed declaration and undertaking in substantially the form set forth as Appendix B attached
 hereto (or in such other forms as Icanic may prescribe from time to time);

(ii) an
 executed broker affirmation, in substantially the form included in Appendix B attached hereto
 (or in such other forms as Icanic may prescribe from time to time); and

(iii) if
 requested by Icanic or the transfer agent, an opinion of counsel of recognized standing in
 form and substance reasonably satisfactory to Icanic and the transfer agent to the effect
 that such sale is being made in compliance with Rule 904 of Regulation S; and

provided, further, that, if any Securities are being sold otherwise than in accordance with Regulation S and other than to Icanic, the legend may be removed by delivery to the registrar and transfer agent and Icanic of an opinion of counsel of recognized standing, in form and substance reasonably satisfactory to Icanic, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

(n) It
 understands and agrees that there may be material tax consequences to the Leef U.S. Securityholder
 of an acquisition, holding or disposition of any of the securities of Icanic. Icanic gives
 no opinion and makes no representation with respect to the tax consequences to the Leef U.S.
 Securityholder under United States federal, state, local or other tax laws of the undersigned's
 acquisition, holding or disposition of such securities.

(o) It
 consents to Icanic making a notation on its records or giving instructions to any transfer
 agent of Icanic in order to implement the restrictions on transfer set forth and described
 in this Representation Letter and the Merger Agreement.

(p) It
 understands that (i) Icanic may be deemed to be an issuer that is, or that has been at any
 time previously, an issuer with no or nominal operations and no or nominal assets other than
 cash and cash equivalents (a "**Shell Company** "), (ii) if Icanic is deemed
 to be, or to have been at any time previously, a Shell Company, Rule 144 under the U.S. Securities
 Act may not be available for resales of the Securities unless the requirements of Rule 144(i)
 under the U.S. Securities Act are met, and (iii) Icanic will not be obligated to make Rule
 144 under the U.S. Securities Act available for resales of the Securities.

(q) It
 understands and agrees that the financial statements of Icanic have been prepared in accordance
 with International Financial Reporting Standards and therefore may be materially different
 from financial statements prepared under U.S. generally accepted accounting principles and
 therefore may not be comparable to financial statements of United States companies.

(r) It
 understands and acknowledges that Icanic is incorporated outside the United States, consequently,
 it may be difficult to provide service of process on Icanic and it may be difficult to enforce
 any judgment against Icanic.

(s) It
 understands that Icanic will not have any obligation to register the Securities under the
 U.S. Securities Act or any applicable state securities or "blue sky" laws or
 to take action so as to permit resales of such Securities. Accordingly, the Leef U.S. Securityholder
 understands that absent registration, it may be required to hold the Securities indefinitely.
 As a consequence, the Leef U.S. Securityholder understands it must bear the economic risks
 of the investment in such Securities for an indefinite period of time.

The foregoing representations contained in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the Closing. If any such representations shall not be true and accurate prior to the Closing, the undersigned shall give immediate written notice of such fact to Icanic prior to the Closing.

Dated <u>______________________</u> 2022.

---

| |
|:---|
| **X** |
| Signature of individual (if Leef U.S. |
| Securityholder **is** an individual) |
| **X** |
| Signature of Authorized signatory (if Leef U.S. |
| Securityholder is **not** an individual) |
| Name of Leef U.S. Securityholder (**please print**) |
| Address of Leef U.S. Securityholder (**please print**) |
| Name of authorized signatory (**please print**) |
| Official capacity of authorized signatory (**please print**) |

---

**Appendix "A" to**

**U.S. Representation Letter for Leef U.S. Securityholders**

 

*To be completed by Leef U.S. Securityholders who qualify as Accredited Investors*

In addition to the covenants, representations and warranties contained in the Merger Agreement and the Representation Letter to which this Appendix is attached, the undersigned Leef U.S. Securityholder covenants, represents and warrants to Icanic that the Leef U.S. Securityholder is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act by virtue of meeting one of the following criteria (please initial on the appropriate lines):

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| | |
|:---|:---|
| 1.<br> Initials ________ | Any bank as defined in Section 3(a)(2) of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act of 1934; any investment adviser registered pursuant to section 203 of the *Investment Advisers Act of 1940* or registered pursuant to the laws of a state; any investment adviser relying on the exemption from registering with the United States Securities and Exchange Commission (the "**Commission**") under section 203(l) or (m) of the *Investment Advisers Act of 1940*; any insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; any investment company registered under the U.S. Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958; any rural business investment company as defined in section 384A of the *Consolidated Farm and Rural Development Act*; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; any employee benefit plan within the meaning of the U.S. *Employee Retirement Income Security Act of 1974* if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000, or, if a self-directed plan, with investment decisions made solely by persons that are "accredited investors" (as such term is defined in Rule 501 of Regulation D under the U.S. Securities Act); |
| 2.<br> Initials ________ | Any private business development company as defined in Section 202(a)(22) of the U.S. *Investment Advisers Act of 1940*; |

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| | |
|:---|:---|
| 3.<br> Initials ________ | Any organization described in Section 501(c)(3) of the U.S. *Internal Revenue Code*, corporation, Massachusetts or similar business trust, partnership, or limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of US$5,000,000; |
| 4.<br> Initials________ | Any trust with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person (being defined as a person who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment); |
| 5.<br> Initials________ | Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent (being a cohabitant occupying a relationship generally equivalent to that of a spouse), excluding the value of that person's primary residence, at the time of purchase, exceeds US$1,000,000 (Note: For purposes of calculating net worth, |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the person's primary residence shall not be included as an asset;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of this Representation Letter, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of this Representation Letter exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) for the purposes of calculating joint net worth of the person and that person's spouse or spousal equivalent, (A) joint net worth can be the aggregate net worth of the investor and spouse or spousal equivalent, and (B) assets need not be held jointly to be included in the calculation; and reliance by the person and that person's spouse or spousal equivalent on the joint net worth standard does not require that the securities be purchased jointly);

---

| | |
|:---|:---|
| 6.<br> Initials________ | Any natural person who had an individual income in excess of US$200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of US$300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; |

---

7. Initials________ Any director or executive officer of Icanic; or

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| | |
|:---|:---|
| 8.<br> Initials________ | Any entity in which all of the equity owners meet the requirements of at least one of the above categories – *if this category is selected, you must identify each equity owner and indicate the category of accredited investor (by reference to the applicable number in this Representation Letter):* |

---

 

---

| | |
|:---|:---|
| <br> **Name of Equity Owner** | **Category of Accredited Investor** |

---

 

Note: It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this category. If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this category will be available;

---

| | |
|:---|:---|
| 9.<br> Initials________ | Any entity, of a type not listed in Categories 1- 4 or 8, not formed for the specific purpose of acquiring the securities offered, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the *Investment Company Act of 1940*); |

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---

| | |
|:---|:---|
| 10.<br> Initials________ | Any natural person holding in good standing one or more of the following professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status: The General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), and the Licensed Investment Adviser Representative (Series 65); |

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| | |
|:---|:---|
| 11.<br> Initials________ | Any "family office," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940: (i) with assets under management in excess of US$5,000,000, (ii) that is not formed for the specific purpose of acquiring the securities offered, and (iii) whose prospective investment is directed by a person (a "Knowledgeable Family Office Administrator") who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or |

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---

| | |
|:---|:---|
| 12.<br> Initials________ | Any "family client," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940, of a family office meeting the requirements set forth in Category 11 above and whose prospective investment in Icanic is directed by such family office with the involvement of the Knowledgeable Family Office Administrator. |

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Dated <u>__________________</u> 2022.

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| |
|:---|
| **X** |
| Signature of individual (if Leef U.S. Securityholder **is** an individual) |
| **X** |
| Signature of authorized signatory (if Leef U.S. Securityholder is **not** an individual) |
| Name of Leef U.S. Securityholder (**please print**) |
| Address of Leef U.S. Securityholder (**please print**) |
| Name of authorized signatory (**please print**) |
| Official capacity of authorized signatory (**please print**) |

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**Appendix "B"**

Form of Declaration and Undertaking for Removal of Legend –

Rule 904 under the U.S. Securities Act of 1933

To: Icanic Brands Company Inc. (the "Company")

And To: The transfer agent for the Company's Common Shares

The undersigned (A) acknowledges that the sale of ________________________common shares in the capital of the Company, represented by Share Certificate No.(s) ________________________________________or held through the Direct Registration System (DRS) in DRS Holder Account No. ____________________,to which this declaration relates, is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and (B) certifies that (1) the undersigned is not an "affiliate" (as defined in Rule 405 under the U.S. Securities Act) of the Company (except solely by virtue of being an officer or director of the Company) or a "distributor", as defined in Regulation S, or an affiliate of a "distributor"; (2) the offer of such securities was not made to a person in the United States and either (a) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (b) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market within the meaning of Rule 902(b) of Regulation S under the U.S. Securities Act, and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States; (3) neither the seller nor any affiliate of the seller nor any person acting on their behalf has engaged in any directed selling efforts in connection with the offer and sale of such securities; (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act); (5) the seller does not intend to replace the securities sold in reliance on Rule 904 of Regulation S under the U.S. Securities Act with fungible unrestricted securities; and (6) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or a scheme to evade the registration provisions of the U.S. Securities Act. Unless otherwise specified, terms used herein have the meanings given to them by Regulation S under the

U.S. Securities Act.

Dated __________20<u>_____</u>.

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| |
|:---|
| X |
| Signature of individual (if Seller is an individual) |
| X |
| Signature of authorized signatory (if Seller is not an individual) |
| Name of Seller (please print) |
| Name of authorized signatory (please print) |
| Official capacity of authorized signatory (please print) |

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**Affirmation by Seller's Broker-Dealer**

**(Required for sales pursuant to Section (B)(2)(b) above)**

We have read the representations of our customer _______________(the "Seller") contained in the foregoing Declaration for Removal of Legend, dated <u>_________________,</u> 20______ , with regard to the sale, for such Seller's account, of ______________________common shares (the "Securities") of the Company represented by certificate number(s) ____________________________, or held through the Direct Registration System (DRS) in DRS Holder Account No. <u>_____________________</u>. We have executed sales of the Securities pursuant to Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), on behalf of the Seller. In that connection, we hereby represent to you as follows:

(1) no offer to sell Securities was made to a person in the United States;

(2) the sale of the Securities was executed in, on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market (as defined in Rule 902(b) of Regulation S under the U.S. Securities Act), and, to the best of our knowledge, the sale was not pre-arranged with a buyer in the United States;

(3) no "directed selling efforts" were made in the United States by the undersigned, any affiliate of the undersigned, or any person acting on behalf of the undersigned; and

(4) we have done no more than execute the order or orders to sell the Securities as agent for the Seller and will receive no more than the usual and customary broker's commission that would be received by a person executing such transaction as agent.

For purposes of these representations: "affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the undersigned; "directed selling efforts" means any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities (including, but not be limited to, the solicitation of offers to purchase the Securities from persons in the United States); and "United States" means the United States of America, its territories or possessions, any State of the United States, and the District of Columbia.

Legal counsel to the Company shall be entitled to rely upon the representations, warranties and covenants contained herein to the same extent as if this affirmation had been addressed to them.

Dated this _________day of ____________________________, 20 <u>_____</u>.

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| |
|:---|
| Signature of Signatory: |
| Name and Title of Authorized Signatory: |
| Name of Brokerage Company: |

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**<u>EXHIBIT B</u>**

**FORM OF EMPLOYMENT AGREEMENT**

(attached hereto)

**EMPLOYMENT AGREEMENT**

This Employment Agreement (this "**Agreement**") is entered into as of [•], 2022 by and between Icanic Brands Company Inc., a company incorporated pursuant to the *Business Corporations Act* (British Columbia) (the "**Corporation**"), and Micah Anderson, an individual and resident of the State of California (hereinafter called "**Executive**").

<u>W I T N E S S E T H</u>:

**WHEREAS**, this Agreement is entered into in connection with that certain Merger Agreement dated as of January 21 2022 (the "**Merger Agreement**") by and among the Corporation, LEEF Holdings, Inc., a Nevada corporation (the "**Company**"), Icanic Merger Sub, Inc., a Nevada corporation ("**Subco**"), and Micah Anderson, in his capacity as representative of the Company Stockholders, pursuant to which Subco was merged with and into the Company with the Company surviving as a wholly-owned subsidiary of the Corporation (the "**Merger**");

**WHEREAS**, the Closing (as defined in the Merger Agreement) of the Merger is conditioned upon the execution and delivery of this Agreement; and

**WHEREAS**, the Corporation and/or its Affiliates (as defined below) desires to employ Executive from and after the Closing under the terms of this new Agreement, and Executive is willing to accept such employment on the terms and subject to the conditions hereinafter set forth from and after the Closing.

**NOW, THEREFORE**, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment by Corporation; Location</u>. The Corporation and/or its Affiliates hereby agrees to employ Executive as the Company's full-time Chief Executive Officer. As the Company's Chief Executive Officer, Executive will report to the Corporation's Board of Directors (the "**Board of Directors**"), and shall have such duties consistent with that of a Chief Executive Officer of the Company and/or that may from time to time be designated or assigned to Executive pursuant to the directives of the Board of Directors. Upon mutual agreement of the Corporation and Executive, the Executive's title and/or position may be changed.

Except for travel when and as required in the performance of Executive's duties hereunder, Executive shall perform his duties hereunder from the Company's principal executive offices in San Diego, California. Executive shall not be required to relocate his primary residency to perform his duties under this Agreement. Executive shall only be required to travel to the Corporation's corporate headquarters not more than once a calendar quarter and for any scheduled meetings of the Board of Directors or meetings in which the entire executive team is required.

- 1 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Executive's Acceptance of Employment</u>. Executive hereby accepts such employment and agrees that throughout the period of his employment hereunder, he will devote the necessary attention, knowledge and skills, faithfully, diligently and to the best of his ability, in furtherance of the business of the Corporation and companies in which the Corporation owns at least 50% of the entity's voting shares (its "**Affiliates**"), he will perform the duties assigned to him pursuant to <u>Section 1</u> hereof, subject, at all times, to the direction and control of the Board of Directors, and he will do such reasonable traveling as may be required of him in the performance thereof. Notwithstanding the foregoing, the Corporation acknowledges that Executive currently maintains an ownership interest in the entities identified in Attachment A and that Executive shall be authorized to devote sufficient time to managing those investments provided that (i) such activities in no way interfere with the performance of Executive's duties pursuant to this Agreement, and (ii) Executive will not take on any additional ownership interests in any other cannabis related entities absent disclosure to and approval of the Board of Directors, not to be unreasonably withheld.

Executive shall at all times be subject to, observe and carry out such rules, regulations, policies, directions and restrictions as the Corporation shall from time to time establish. Executive agrees that he shall not, without the prior written approval of the Board of Directors, directly or indirectly, accept employment or compensation from or perform services of any nature for, any business enterprise other than the Corporation and its Affiliates, excluding those entities attached on <u>Attachment A</u>. Nothing in this Agreement shall preclude Executive from engaging in appropriate civic, charitable or religious activities or from devoting a reasonable amount of time to private investments, as long as such activities and/or services do not interfere or conflict with his responsibilities or duties to the Corporation as determined by the Board of Directors in its sole reasonable discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term</u>. The term of Executive's employment under this Agreement shall be the period commencing on the Closing Date (as defined in the Merger Agreement) and continuing until the third (3rd) anniversary thereof, unless terminated earlier pursuant to <u>Section 7</u> (the "**Initial Term**"). At the conclusion of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms (each, a "**Renewal Term**") unless either party gives the other written notice of non-renewal at least ninety (90) days' prior to the end of the Initial Term or a Renewal Term, as the case may be, and subject to earlier termination as provided in <u>Section 7</u> hereof. As used in this Agreement, the "**Term**" shall mean the Initial Term together with any Renewal Terms, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation/Bonus/Options/Benefits/Equity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The Corporation will pay to Executive as compensation for his services hereunder an annual base salary (the "**Base Salary**") of Two Hundred Fifty Thousand U.S. Dollars (US$250,000) per annum payable in equal installments in accordance with the Corporation's normal payroll policy, but not less than monthly. The Base Salary shall be reviewed annually by Executive and the Board of Directors may be increased at any time; *provided, however*, that Executive's Base Salary shall not be subject to reduction. Upon any increase to Executive's Base Salary, the then current salary as so increased shall be the "Base Salary" for purposes of this Agreement.

- 2 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Commencing with the calendar year ending December 31, 2021, and for each calendar year thereafter while this Agreement is in effect (each, a "**Plan Year**"), Executive shall be eligible for an annual incentive performance bonus (the "**Incentive Bonus**"). The target potential amount of the Incentive Bonus payable to Executive shall be up to 100% of Executive's Base Salary earned during the applicable Plan Year. The Incentive Bonus will be conditioned on the satisfaction of individual and company objectives as set forth below and subject to <u>Section 7</u> of this Agreement, and shall be payable on or before February 15 of the year following the Plan Year. By the end of January of each Plan Year, the Corporation's Board of Directors and/or Compensation Committee of the Board of Directors and Executive shall jointly establish the incentive target objectives that Executive has to meet to earn the Incentive Bonus; *provided, however*, for the initial partial year of this Agreement through December 31, 2021, the targets shall be those as previously determined by the Board of Directors of the Company pursuant to the terms and conditions of Executive's Prior Agreement (as defined below). The payment of any Incentive Bonus pursuant to this <u>Section 4.2</u> shall be made in accordance with the normal payroll practices of the Corporation, less required deductions for state and federal withholding tax, social security and all other employment taxes and authorized payroll deductions, and provided Executive satisfies the conditions for earning the Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Effective upon the Closing, the Corporation shall grant you stock options to purchase up to 4,200,000 (as adjusted for stock splits, reclassifications and the like) shares (the "**Option Shares**") of the Company's common stock. Additionally, following the Closing, the Executive shall, subject to the approval of the Board of Directors, receive such other grants of Option Shares, restricted stock ("**Restricted Stock**") and/or restricted stock units ("**RSUs**", and together with the Option Shares and Restricted Stock, the "**Equity Awards**") in connection with (a) Executive's individual performance and/or (b) the performance of the Corporation and/or certain operating subsidiaries of the Corporation (including the Company and its subsidiaries), in each case equivalent in amount and value granted to other similar situated executives of the Corporation. All such Equity Awards shall be issued pursuant to, and subject to the terms and conditions of the Corporation's stock option and incentive plan adopted by the shareholders of the Corporation on May 27, 2016, as amended from time to time (the "**Equity Plan**") and an award agreement thereunder (the "**Award Agreement**") to be entered into with the Corporation. The Equity Awards shall vest as set forth in the Award Agreement; *provided*, that to the extent the Corporation grants any Equity Awards to Executive during the Term, then the Corporation shall in such Award Agreement provide that (x) in the event a Change of Control (as defined below) is consummated during the Term, or (y) Executive either (i) is terminated other than for Cause, death or Disability or (ii) resigns for Good Reason (as defined below), then all of Executive's unvested Equity Awards shall automatically and immediately vest in full. Executive shall, subject to the approval of the Board of Directors, participate in a management incentive plan (the "**Management Plan**"). The Management Plan shall allocate stock grants of the Corporation's common shares based on all business acquisitions (whether by merger, asset purchase or stock purchase) completed by the Corporation as well as revenue growth of the Corporation post-closing of any such acquisition transaction. The Management Plan shall also provide for stock grants of the Corporation's common shares to Executive if there is a Change of Control (as defined below) of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Executive shall be entitled to the Corporation's group medical and dental insurance benefits. At Executive's request, however, in lieu of providing Executive with group medical and dental insurance benefits, the Corporation shall reimburse Executive for the cost of obtaining his own private medical and dental insurance policy, provided that the monthly amount of such insurance premiums shall not exceed Five Thousand Dollars ($5,000) per month. Executive shall also be entitled to a life insurance policy covering his own death with the beneficiary as determined by Executive in his sole discretion in the amount of not less than One Million U.S. Dollars (US$1,000,000) with the Corporation responsible for paying all expenses and premiums of such policy during the Term.

- 3 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 The Corporation recognizes that Executive is required to drive throughout California to fully perform his duties. As such the Corporation agrees to provide Executive with a monthly auto subsidy of One Thousand U.S. Dollars (US$1,000), and shall also reimburse Executive up to Two Thousand U.S. Dollars (US$2,000) for other travel expense, including airfare. Such auto subsidy payments shall be in lieu of any obligation to reimburse Executive for mileage or other driving related expenses, notwithstanding any other policy of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 The Corporation shall issue to Executive and/or to such other employees of the Corporation and its Affiliates as the Executive shall direct, the following performance equity payments (capitalized terms used in this <u>Section 4.6</u> shall have the meaning ascribed to them in the Merger Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the First Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(a) of the Merger Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Second Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(b) of the Merger Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Third Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(c) of the Merger Agreement.

The Resulting Issuer Common Shares issuable pursuant to this <u>Section 4.6</u> may be issued as Equity Awards under the Equity Plan; *provided*, that such Resulting Issuer Common Shares so issued under the Equity Plan shall be fully vested upon issuance and shall not be subject to vesting or any other condition of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Business Expenses</u>. For business travel related to Executive's duties, the Corporation shall reimburse Executive for all out-of-pocket expenses reasonably incurred by him in accordance with the Corporation's travel and entertainment policy and procedures and any amendment thereof that the Corporation may adopt during his employment. Executive shall be authorized to fly Business Class or First Class for any air travel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Vacation</u>. Executive shall be entitled to vacation in accordance with the Corporation's vacation policy as in effect from time to time; provided that Executive shall be entitled to no less than a minimum amount of six (6) weeks per year.

- 4 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Termination by the Corporation for Cause</u>. The Corporation may terminate Executive's employment immediately at any time and without notice for "Cause", subject to any applicable notice and cure period. For purposes of this Agreement, "**Cause**" shall mean (a) a material breach by Executive of his obligations under this Agreement that is not cured within thirty (30) days following receipt of written notice thereof from the Corporation's Board of Directors; (b) Executive's theft or knowing falsification of any Corporation documents or records; (c) Executive's conviction (including any plea of guilty or nolo contendere) of any felony or other misdemeanor (excepting in each case any conviction or plea relating to any charge associated with state or federal laws relating to cannabis, hemp and/or psychedelics) that involves theft, fraud or an act of dishonesty; (d) Executive's repeated failure to perform his duties on behalf of the Corporation in a competent and diligent manner, which such failure causes material financial harm to the Corporation, if such failure is not cured within thirty (30) days following receipt of written notice thereof from the Corporation's Board of Directors. Any notice of termination required under this <u>Section 7.1</u> shall identify the events or conduct constituting the grounds for termination with sufficient specificity so as to enable Executive to take steps to cure such default as permitted. In the event Executive's employment is terminated in accordance with this <u>Section 7.1</u>, Executive shall be entitled to receive only the Base Salary through the effective date of termination, plus payment for any expenses that may be due hereunder through the effective date of termination, plus any other amounts required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Termination Without Cause By The Corporation/By the Executive for Good Reason/By the Corporation - Separation Package</u>. In the event that at any time (a) the Corporation terminates Executive's employment under this Agreement without Cause (as defined above) or (b) Executive terminates his employment for Good Reason, Executive will receive all Base Salary and Incentive Bonus amounts payable through the effective date of termination plus (A) a lump sum cash severance payment equal to twenty-four (24) months of his Base Salary then in effect, plus (B) a lump sum cash severance payment for a prorated portion of any Incentive Bonus for which Executive was eligible during the Plan Year in which the termination occurs, provided that the relevant milestones have been achieved on a pro rata basis for the relevant period, plus (C) payment for any expenses that may be due hereunder through the effective date of termination, plus (D) any other amounts required by applicable law. In addition, all Equity Awards granted shall fully accelerate and vest. For the purposes of this Agreement, the term "**Good Reason**" shall mean (i) any material reduction in Executive's annual Base Salary, bonus potential or overall compensation, (ii) Executive's position, authority, or duties are materially reduced, (iii) Executive's assigned work location is moved to a location more than 50 miles from San Diego, California, or (iv) the Corporation materially breaches the provisions of this Agreement and fails to cure such breach within thirty (30) days following receipt of written notice thereof from Executive. Executive shall not be entitled to any portion of the Separation Package described in this <u>Section 7.2</u> unless Executive first executes, and does not revoke as may be allowed by law, a complete release of all claims in favor of the Corporation, its employees, officers, and agents, in form chosen by the Corporation in its reasonable discretion.

- 5 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Termination by the Corporation for Disability or upon Death</u>. This Agreement shall automatically terminate upon the death of Executive. In addition, this Agreement may be terminated by the Corporation upon Executive's Disability. For the purposes of this Agreement, the term "**Disability**" shall mean Executive's failure to substantially perform his duties hereunder for either three (3) consecutive months or an aggregate of 120 days in any rolling twelve (12) month period, as determined by the Board acting in good faith, and after making reasonable accommodations and complying with all requirements of the Americans with Disabilities Act and any state law equivalent legislation. Any questions as to the existence, extent or potentiality of illness or incapacity of Executive upon which the Corporation and Executive cannot agree shall be determined by a qualified independent physician selected by Executive, a physician selected by the Corporation's Board of Directors, and a third physician selected by the other two physicians. The determination of such physicians certified in writing to Executive and to the Corporation shall be final and conclusive for all purposes of this Agreement. In the event Executive's employment is terminated in accordance with this <u>Section 7.3</u>, Executive shall be entitled to receive (a) the Base Salary through the effective date of termination, plus (b) payment for any expenses that may be due hereunder through the effective date of termination, plus (c) a lump sum cash severance payment for a prorated portion of any Incentive Bonus for which Executive was eligible during the Plan Year in which the termination occurs, provided that the relevant milestones have been achieved on a pro rata basis for the relevant period, plus (d) any other amounts required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Termination Upon a Change of Control</u>. For purposes of this Agreement, "**Change of Control**" shall mean: (1) a merger or consolidation or the sale or exchange by the stockholders of the Corporation of all or substantially all of the capital stock of the Corporation, where the stockholders of the Corporation immediately before such transaction do not obtain or retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock or other voting equity of the surviving or acquiring corporation or other surviving or acquiring entity, in substantially the same proportion as before such transaction; (2) any transaction or series of related transactions to which the Corporation is a party in which in excess of fifty percent (50%) of the Corporation's voting power is transferred; or (3) the sale or exchange of all or substantially all of the Corporation's assets (other than a sale or transfer to a subsidiary of the Corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the "**Code**")), where the stockholders of the Corporation immediately before such sale or exchange do not obtain or retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock or other voting equity of the corporation or other entity acquiring the Corporation's assets, in substantially the same proportion as before such transaction; *provided, however*, that a Change of Control shall not be deemed to have occurred pursuant to any transaction or series of transactions relating to a public or private financing or re-financing, the principal purpose of which is to raise money for the Corporation's working capital or capital expenditures and which does not result in a change in a majority of the members of the Board of Directors. Immediately preceding a Change of Control, any then unvested portion of the Option will become fully vested. If, within three (3) months immediately preceding a Change of Control or within six (6) months immediately following a Change of Control, the Executive's employment is terminated by the Corporation for any reason other than Cause or because of a Disability, then the Executive shall be entitled to receive each of the payments, accelerated vesting and other benefits provided in <u>Section 7.2</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Resignation</u>. In the event that Executive resigns or otherwise terminates this Agreement, other than for Good Reason, Executive will only be entitled to receive Executive's Base Salary earned up to the date of termination.

- 6 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Duty of Loyalty</u>. In consideration of the Corporation entering into this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Executive agrees that during the Term of this Agreement he will not directly or indirectly own, manage, operate, join, control, participate in, perform any services for, invest in, or otherwise be connected with, in any manner, whether as an officer, director, employee, consultant, partner, investor or otherwise, any business entity which is engaged in any business in which the Corporation or any of its Affiliates is currently engaged or is engaged at the termination of this Agreement, *provided however* that nothing in this <u>Section 8.1</u> shall be deemed to prohibit Executive (a) from managing the businesses or his investments identified on <u>Attachment A</u> or (ii) investing his funds in securities of a company if the securities of such company are listed for trading on a national stock exchange or traded in the over-the-counter market and Executive's holdings therein represent less than five percent (5%) of the total number of shares or principal amount of other securities of such company outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Executive agrees that Executive will not, during the Term, and during the one (1) year period following the termination of the Executive's employment, directly or indirectly, by action alone or in concert with others, induce or influence, or seek to induce or influence any person who is engaged by the Corporation or any of its Affiliates as an employee, agent, independent contractor or otherwise, to terminate his employment or engagement, nor shall Executive, directly or indirectly, through any other person, firm or corporation, employ or engage, or solicit for employment or engagement, or advise or recommend to any other person or entity that such person or entity employ or engage or solicit for employment or engagement, any person or entity employed or engaged by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Confidentiality Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 As used herein, the term "**Confidential Information**" shall mean any and all information of the Corporation and of its Affiliates (for purposes of <u>Sections 9</u>, <u>10</u> and <u>11</u> of this Agreement, the Corporation's Affiliates shall be deemed included within the meaning of "**Corporation**"), including, but not limited to, all data, compilations, programs, devices, strategies, or methods concerning or related to (a) the Corporation's finances, financial condition, results of operations, employee relations, amounts of compensation paid to officers and employees and any other data or information relating to the internal affairs of the Corporation and its operations; (b) the terms and conditions (including prices) of sales and offers of sales of the Corporation's products and services; (c) the terms, conditions and current status of the Corporation's agreements and relationship with any customer or supplier; (d) the customer and supplier lists and the identities and business preferences of the Corporation's actual and prospective customers and suppliers or any employee or agent thereof with whom the Corporation communicates; (e) the trade secrets, manufacturing and operating techniques, price data, costs, methods, systems, plans, procedures, formulas, processes, hardware, software, machines, inventions, designs, drawings, artwork, blueprints, specifications, and strategic plans possessed, developed, accumulated or acquired by the Corporation; (f) any communications between the Corporation, its officers, directors, shareholders, or employees, and any attorney retained by the Corporation for any purpose, or any person retained or employed by such attorney for the purpose of assisting such attorney in his or her representation of the Corporation; (g) any other non-public information and knowledge with respect to the Corporation's products, whether developed or in any stage of development by the Corporation; (h) the abilities and specialized training or experience of others who as employees or consultants of the Corporation during the Executive's employment have engaged in the design or development of any such products; and (i) any other matter or thing, whether or not recorded on any medium, (x) by which the Corporation derives actual or potential economic value from such matter or thing being not generally known to other persons or entities who might obtain economic value from its disclosure or use, or (y) which gives the Corporation an opportunity to obtain an advantage over its competitors who do not know or use the same.

- 7 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Executive acknowledges and agrees that the Corporation is engaged in a highly competitive business and has expended, or will expend, significant sums of money and has invested, or will invest, a substantial amount of time to develop and maintain the secrecy of the Confidential Information. The Corporation has thus obtained, or will obtain, a valuable economic asset which has enabled, or will enable, it to develop an extensive reputation and to establish long-term business relationships with its suppliers and customers. If such Confidential Information were disclosed to another person or entity or used for the benefit of anyone other than the Corporation, the Corporation would suffer irreparable harm, loss and damage. Accordingly, Executive acknowledges and agrees that, unless the Confidential Information becomes publicly known through legitimate origins not involving an act or omission by Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Confidential Information is, and at all times hereafter shall remain, the sole property of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive shall use his best efforts and the utmost diligence to guard and protect the Confidential Information from disclosure to any competitor, customer or supplier of the Corporation or any other person, firm, corporation or other entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) unless the Corporation gives Executive prior express written permission, during his employment and thereafter, Executive shall not use for his own benefit, or divulge to any competitor or customer or any other person, firm, corporation, or other entity, any of the Confidential Information which Executive may obtain, learn about, develop or be entrusted with as a result of Executive's employment by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 Executive also acknowledges and agrees that all documentary and tangible Confidential Information including, without limitation, such Confidential Information as Executive has committed to memory, is supplied or made available by the Corporation to the Executive solely to assist him in performing his services under this Agreement. Executive further agrees that after his employment with the Corporation is terminated for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive shall not remove from the property of the Corporation and shall immediately return to the Corporation, all documentary or tangible Confidential Information in his possession, custody, or control and not make or keep any copies, notes, abstracts, summaries or other record of any type of Confidential Information; and

- 8 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive shall immediately return to the Corporation any and all other property of the Corporation in his possession, custody or control, including, without limitation, any and all keys, security cards, passes, credit cards and marketing literature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Execute understands that nothing in this Agreement prohibits Executive from reporting to any governmental authority information concerning possible violations of law or regulation and that Executive may disclose Confidential Information to a government official or to an attorney and use it in certain court proceedings without fear of prosecution or liability, provided Executive files any document containing Confidential Information under seal and does not disclose the Confidential Information, except pursuant to court order.

- 9 - Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Remedies</u>. Executive acknowledges and agrees that the business of the Corporation is highly competitive and that the provisions of <u>Sections 8</u>, <u>9</u> and <u>10</u> are reasonable and necessary for the protection of the Corporation and that any violation of such covenants would cause immediate, immeasurable and irreparable harm, loss and damage to the Corporation not adequately compensable by a monetary award. Accordingly, Executive agrees without limiting any of the other remedies available to the Corporation, that any violation of said covenants, or any one of them, may be enjoined or restrained by any court of competent jurisdiction, and that any temporary restraining order or emergency, preliminary or final injunctions may be issued by any court of competent jurisdiction, without notice and without bond. In the event any proceedings are commenced by the Corporation against Executive for any actual or threatened violation of any of said covenants and if the Corporation prevails in such litigation, then, Executive shall be liable to the Corporation for, and shall pay to the Corporation, all costs and expenses of any kind, including reasonable attorneys' fees, which the Corporation may incur in connection with such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement of the parties hereto with respect to the matters set forth herein and no amendment or modification hereof shall be valid or binding unless made in writing and signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. Any notice, required, permitted or desired to be given pursuant to any of the provisions of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered in person or sent by certified mail, return receipt requested, postage and fees prepaid as follows:

if to the Corporation at:

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attn: Brandon Kou

and, if to Executive:

Micah Anderson

2752 Carriagedale Row

La Jolla, CA 92037

Either of the parties hereto may at any time and from time to time change the address to which notice shall be sent hereunder by notice to the other party given as provided herein. The date of the giving of any notice hereunder shall be the date delivered or if sent by mail, shall be the date of the posting of the mail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Non-Assignability</u>. Neither this Agreement nor the right to receive any payments hereunder may be assigned by Executive except as may be permitted by the laws of decent or distribution in the event of Executive's death or disability. This Agreement shall be binding upon Executive and inure to the benefit of his heirs, executors and administrators and be binding upon the Corporation and inure to the benefit of its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Choice of Law And Forum</u>. This Agreement shall be governed, interpreted and construed under the laws of the State of California without regard to its conflict of law principles. The parties agree that any dispute or litigation arising in whole or in part hereunder shall only be litigated in any state or Federal court of competent subject matter jurisdiction sitting in San Diego County, California, to the jurisdiction of which and venue in which each party irrevocably consents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Waiver</u>. No course of dealing nor any delay on the part of any party in exercising any rights hereunder shall operate as a waiver of any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver or a waiver of any other breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Severability</u>. If any provision of this Agreement, including any paragraph, sentence, clause or part thereof, shall be deemed contrary to law or invalid or unenforceable in any respect by a court of competent jurisdiction, the remaining provisions of such paragraph, sentence, clause or part thereof shall not be affected, but shall, subject to the discretion of such court, remain in full force and effect and any invalid and unenforceable provisions shall be deemed, without further action on the part of the parties hereto, modified, amended and limited to the extent necessary to render the same valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in counterparts (by physical or electronic means, including DocuSign), each of which shall be deemed an original and together shall constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Survival at Termination</u>. The termination of this Agreement or Executive's employment hereunder shall not affect either party's obligations under this Agreement which by the nature thereof are intended to survive any such termination including, without limitation, Executive's obligations under <u>Sections 8</u>, <u>9</u> and <u>10</u>.

**[Signature Page to Follow]**

- 10 - Initial ____

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed effective as of the date first above set forth.

---

| |
|:---|
| CORPORATION: |
| ICANIC BRANDS COMPANY INC. |
| By: |
| Name: |
| Title: |

---

---

| |
|:---|
| EXECUTIVE: |
| Micah Anderson |

---

- 11 - Initial ____

**<u>Attachment A</u>**

● 33 Holdings

● Anderson Dev SB

● ADSB Management

● Anderson Dev Holdings SJ

● Anderson Development SJ

● Anderson Development Willits

● Little Ry Holding

● Lower Thomas Road

● LTR Realty

● MPA Farms, Inc

● MPA Legacy Holdings Inc

● Sunset Ridge Road

● Orr Springs Road

● Orr Springs Land Road

● Chula Vista 2

● Willowbrook Realestate

● Willits Retail

- 12 - Initial ____

**<u>EXHIBIT C</u>**

**LOCK-UP AGREEMENT**

(attached hereto)

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | [●], 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |
| Attention: Brandon Kou, Chief Executive Officer |  |
| Re: Lock-up Letter Agreement with Icanic Brands Company Inc. |  |

---

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) **[FOR MARK ADD]: any obligations of the undersigned under the Conditional Purchase Agreement dated as of the date hereof among Leef, Micah Anderson, as the representative of the shareholders of Leef, Mark Smith and Kamaldeep Thindal the ("Conditional Purchase Agreement")],** (B) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (C) securities sold to satisfy tax obligations on the exercise of any convertible securities; (D) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (E) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (D) and (E) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

**[FOR MARK ADD]:** For greater certainty, nothing in this Lock-Up Agreement shall restrict the undersigned from performing or satisfying his obligations under the Conditional Purchase Agreement.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

 

---

| | | |
|:---|:---|:---|
| DATED and effective as of the date set forth above. |  |  |
| [Corporate Shareholder] |  |  |
|  | By: |  |
|  | Name: |  |
|  | Title: |  |
| [Individual Shareholder] |  |  |
| Signature of Witness |  | Signing Party Name |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

**<u>EXHIBIT D</u>**

**LEGENDING OF PAYMENT SHARES**

i. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 12 months following Closing;

ii. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 15 months following Closing;

iii. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 18 months following Closing;

iv. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 21 months following Closing;

v. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 24 months following Closing;

vi. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 27 months following Closing;

vii. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 30 months following Closing; and

viii. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 33 months following Closing.

**<u>APPENDIX I</u>**

**EARN-OUT EXAMPLE**

![](pg101-150_001.jpg)

**COMPANY DISCLOSURE LETTER**

**STRICTLY CONFIDENTIAL**

The Directors

**ICANIC BRANDS COMPANY INC.**

789 West Pender Street, Suite 810 Vancouver, British Columbia

V6C 1H2

January 21, 2022

**Re: Merger Agreement dated January 21, 2022 (the "Merger Agreement"), between Icanic Brands Company Inc. (the "Purchaser"), LEEF Holdings, Inc. (the "Company"), Icanic Merger Sub, Inc., and Micah Anderson**

Dear Sirs:

&nbsp;&nbsp;&nbsp;&nbsp;1. We
 refer to the Merger Agreement relating to the proposed acquisition of the entire issued share capital of the Company.

2. This
 letter constitutes the Company Disclosure Letter as defined in the Merger Agreement (referred to herein as the "**Disclosure Letter** "), and none of the Company, nor any of its stockholders, directors, officers or employees shall have any liability
 in respect of any claim to the extent that such claim, or the subject matter thereof, arises from or in connection with or consists
 of any fact, matter or circumstance which has been disclosed in this Disclosure Letter.

3. Capitalized
 words and expressions used in this Disclosure Letter have the same meanings as ascribed to such capitalized words and expressions
 in the Merger Agreement unless otherwise defined herein or the context otherwise requires.

4. All
 matters described in this Disclosure Letter are to be taken as having been "disclosed" for the purposes of the Merger
 Agreement.

5. The
 Company makes no representation or warranty, express or implied, nor does it accept any other liability in contract, tort or otherwise,
 with respect to the information disclosed in this Disclosure Letter, except as provided in the Merger Agreement.

6. In
 the event that any inconsistency is revealed between any provision of the Merger Agreement and any part of this Disclosure Letter
 (including the information referred to herein) this Disclosure Letter will prevail and will be and deemed to be the relevant disclosure.

**<u>Section 4.1 (b)</u>**

The Company owns the following wholly-owned subsidiaries:

● Paleo Paw Corp. (LEEF Organics)

● Seven Zero Seven, LLC

● LEEF EC Retail, LLC

● Anderson Development SB, LLC ()"**ADSB** ")

● Willits Retail, LLC

● Payne's Distribution, LLC

The Company intends to close on the acquisition of Arvin Drying Facility, LLC ("**Arvin**") in January 2022, at which time Arvin will become a wholly-owned subsidiary.

The Company owns, through Paleo Paw Corp., 51.01% of outstanding equity interests in Aya Biosciences, Inc.

**<u>Section 4.1(c)</u>**

The Company and its subsidiaries hold the following cannabis licenses and permits (the "***Cannabis Licenses***"):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Licensee** | **Type of License** | **License #** | **Issued By** | **Expiration Date** | **Issue Date** |
| Paynes Distribution, LLC | Distribution | C11-0000916-LIC | BCC-DCA | 7-25-2022 | 1/9/2018 |
| Paynes Distribution, LLC | Distribution | CAP 17-09 | City of Willits | 9/24/2022 | 9/24/2018 |
| Seven Zero Seven, LLC<br>| Manufacturing | CDPH-10002848 | CDPH | 4/25/2022 | 1/9/2018 |
| Willits Retail LLC | Dispensary | App #C10-21- 0000144-AAP | BCC-DCA |  | Pending |
| Willits Retail LLC | Dispensary | CAP 19-04 (Pending commencement of operations) | City of Willits |  | 3/11/2021 |
| Paynes Distribution (Arvin) | Distribution | App #C-11-21- 0000019-APP | BCC-DCA |  | Pending |

---

**<u>Section 4.1(d)</u>**

The information set forth and disclosed in Section 4.1(c) above in this Disclosure Letter regarding the Cannabis Licenses is incorporated herein by reference. Each of the Cannabis Licenses will require approval from the relevant licensing agency in connection with the transaction.

**<u>Section 4.1(h)</u>**

● Option Agreement dated January 29, 2019 by and between Lenore Street Properties, LLC and Anderson Development Willits, LLC

● Standard Offer, Agreement and Escrow Instructions for Purchase of Real Estate dated August 3, 2020 by and between Tom and Karen Brundy and the Company

● Option (To Buy) Agreement dated October 16, 2020 by and between John James Trino & Roslyn R. Trino and the Company

● Option Agreement dated December 22, 2020 by and between Salisbury Canyon Ranch, LLC and Anderson Development SB, LLC

● The Company intends to acquire the solventless brand "Real Deal Resin" ()"**RDR** "). The proposed acquisition of RDR is under negotiation between the Company and Headieslaps, LLC pursuant to the Letter of Intent dated October 20, 2021. The negotiations are not yet finalized.

● Asset Purchase Agreement dated June 7, 2019 by and among Utica Leasco, LLC, the Company, Paleo Paw Corp., Seven Zero Seven, LLC and Payne's Distribution, LLC, as amended on March 6, 2020.

● Membership Unit Purchase Agreements in September-October 2021 between the Company and Anderson Development unit holders, ADSB Management, LLC, JAKFT, LLC, Ken Kavanagh, Air G, LLC, and the Marley Trust for acquisition of 100% of the outstanding membership interest of ADSB for approximately $1.2 million and up to an additional approximately $2.4 million in Earnout Consideration (both payable in combination of cash and shares of the Company's common stock).

**<u>Section 4.1 (i)</u>**

● The Company has approximately US$14 Million of convertible debentures due in June 2022 pursuant to the terms and conditions of that certain Indenture dated June 6, 2019 by and between the Company, Odyssey Trust Company as trustee and Odyssey Trust Company as the collateral agent (the "**Indenture** "). The Indenture is secured by substantially all of the Company's assets.

● The Company is currently indebted in the aggregate principal amount of US$332,900 for one Paycheck Protection Program loans. US$5,253.44 of interest has accrued as of December 31, 2021.

● Capital Lease payments, pursuant to that certain Asset Purchase Agreement dated June 7, 2019 by and among Utica Leasco, LLC, the Company, Paleo Paw Corp., Seven Zero Seven, LLC and Payne's Distribution, LLC

● The Company has accrued for employee paid time off and potential monthly employee benefits charges in the aggregate amount not to exceed US$150,000.

**<u>Section 4.1 (j)</u>**

● The Company has outstanding audit inquires with the Employment Development Department (EDD).

● The Company's current cultivation tax strategy for the purchase of biomass and trim is subject to interpretation under the CDTFA rules. As a result, the Company may have an unaccrued liability and overstated gross margins should the CDTFA rule against the Company's position in any future audit inquiry.

**<u>Section 4.1(m)</u>**

The Company's capitalization table is attached hereto as <u>Appendix A</u>, which is incorporated herein by reference.

In the event that ADSB obtains a Business License from the County of Santa Barbara, CA, the Company will be required to issue additional Company Common Shares to the former shareholders of ADSB equal in value to $2.4 Million (the "**ADSB Shares**"). Following the Closing, Purchaser shall be obligated to assume this obligation and issue Resulting Issuer Shares for the ADSB Shares.

**<u>Section 4.1 (n)</u>**

The Company has the following pending legal actions:

● Juan Somano. Mr. Somano was a former employee who was terminated for cause in September 2020. Mr. Samano had knowledge that another former employee stole $90,000 from the Company's safe. Mr. Samano retained an attorney and threatened legal action against the Company. The Company has not received any further correspondence from Mr. Somano nor his attorney. The Company considers this matter closed.

● As per the letter dated May 18, 2021 from Custodio & Dubey LLP, legal action has been threatened against the Company because its website is not accessible to blind individuals. Olivo IP Law Group has advised that the Company implement a strategy to address ADA, California CCPA, GDPR, and other standards to ensure compliance of the Company's e- portal. No further correspondence has been received from Custodio & Dubey LLP.

● Letters from Greenbaum Law Group, LLP dated August 23, 2021 and September 21, 2021, respectively, both addressed to Kevin Wilson. The letters pertain to a judgment enforcement in the amount of $114,855.26. No further correspondence has been received.

**<u>Section 4.1(p)</u>**

The information set forth and disclosed in Section 4.1(i) above in this Disclosure Letter regarding the Indenture is incorporated herein by reference. The Indenture is secured by substantially all of the Company's assets.

**<u>Section 4.1 (q)</u>**

The information set forth and disclosed in Section 4.1(c) above in this Disclosure Letter regarding the Cannabis Licenses is incorporated herein by reference.

**<u>Section 4.1 (r)</u>**

The Company has the following registered trademarks and pending applications:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Mark** | **Serial No. / Registration No.** | **Filing Date / Registration Date** | **Registrant** | **Class of Goods** |
| HEADY | 88111965/6130918 | 2018-09-11/2020-08-18 | Paleo Paw Corp. | 4 STANDARD CHARACTER MARK |
| LEEF | 88141978/6456131 | 2018-12-20/2021-08-17 | Paleo Paw Corp. | 3 DESIGN PLUS WORDS, LETTERS, AND/OR NUMBERS |
| LEEF | 88141970/6456130 | 2018-12-20/2021-08-17 | Paleo Paw Corp. | 4 STANDARD CHARACTER MARK |
| FARM TO LIFESTYLE | 88671265 | 2019-10-28 | Paleo Paw Corp. | Agricultural services for hemp |
| NOOKS + CRANNIES | 88303616/6348662 | 2019-02-15/2021-05-11 | Paleo Paw Corp. | 4 STANDARD CHARACTER MARK |
| CANNAPARK | 889631106391519 | 2020-06-12/2021-06-15 | Paleo Paw Corp. | 4 STANDARD CHARACTER MARK |
| PALEO PAW | 86052153/4594322 | 2013-08-30/2014-08-26 | Lyndsey Roach and Micah Anderson | Dog food; dog treats; pet food |

---

The Company uses the following unregistered trademarks and service marks:

● "LEEF Labs" (DBA is currently pending)

● "Boxcar Manufacturing"

● "Boxcar Supply Co."

The Company licenses the following software:

● Dynamics NAV 365

● Microsoft Office Suite/Go Daddy web hosting

● Canix

**<u>Section 4.1(u)</u>**

● Stockholders' Agreement dated January 2019 by and among the Company and certain of the Company Stockholders. There are also corresponding Joinder Agreements.

**<u>Section 4.1 (w)</u>**

Under California law, the Company is obligated to begin discussions with its employees in regard to forming a Labour Peace Agreement and to engage with a union to offer Company employees the opportunity to form a collective bargaining agreement.

**<u>Section 4.1(x)</u>**

● Asset Purchase Agreement dated June 7, 2019 by and among Utica Leasco, LLC, the Company, Paleo Paw Corp., Seven Zero Seven, LLC and Payne's Distribution, LLC, as amended on March 6, 2020

● Residential Lease Agreement dated July 1, 2021 between Leef Holdings c/o Emily Heitman (tenant) and Ian Powell (landlord) for 588 Hazel Avenue, Ukiah, CA 95482

● Commercial Lease Agreement dated October 19, 2018 between the Company (tenant) and Page Family Trust, Anseth Richards, and Keith Richards (landlord) for 5644 La Jolla Boulevard, La Jolla, CA 92037. This lease has expired and the property is being occupied and leased on a month-to-month basis.

● Professional Office Lease Agreement dated September 29, 2021 between the Company (tenant) and Village One (landlord) for 303 – 650 Alamo Pintado Road, Solvang, CA

● Commercial Lease Agreement dated August 2, 2018 between the Company (tenant) and Lenore Street Properties, LLC (landlord) for 175 North Lenore Avenue, Willits, California 95490

**<u>Section 4.1(z)</u>**

The Company is a party to the following employment and/or consulting agreements:

● Employment Agreement dated June 1, 2019 by and between the Company and Micah Anderson

● Employment Agreement dated June 1, 2019 by and between the Company and Emily Heitman

● Employment Agreement dated January 1, 2019 by and between Seven Zero Seven, LLC and Gary Vandenberghe

The Company maintains the following bonus plans for the employees listed below:

● Shawn Sellers: up to 40% of gross wages

● Calvin Billings: up to $10,000 per annum. Mr. Billings is not a party to an employment agreement.

**<u>Section 4.1(cc)</u>**

● The information set forth and disclosed in Section 4.1(b) above in this Disclosure Letter regarding Arvin is incorporated herein by reference. The acquisition cost of Arvin will be approximately $2.8 Million.

● The information set forth and disclosed in Section 4.1(m) above in this Disclosure Letter regarding the ADSB Shares is incorporated herein by reference.

● The information set forth and disclosed in Section 4.1(h) above in this Disclosure Letter regarding the RDR is incorporated herein by reference

**<u>Section 4.1 (ee)</u>**

Micah Anderson, Emily Heitman and Kevin Wilson each have an ownership interest in Anderson Development SB, LLC

Micah Anderson has an ownership interest in each of the following entities:

● 33 Holdings

● Anderson Dev SB

● ADSB Management

● Anderson Dev Holdings SJ

● Anderson Development SJ, LLC

● Anderson Development Willits, LLC

● Little Ry Holding

● Lower Thomas Road, LLC

● LTR Realty

● MPA Farms, Inc

● MPA Legacy Holdings Inc

● Sunset Ridge Road, LLC

● Orr Springs Road

● Orr Springs Land Road

● Chula Vista 2

● Willowbrook Realestate

● Willits Retail

● The Leaf El Paseo

● Anderson Development Chula Vista 1, LLC

**<u>Section 4.1(gg)</u>**

The Company retained Bayline Capital Partners, Inc. ("***Bayline***") to advise it in connection with the Transaction. Pursuant to the terms of the engagement agreement with Bayline as compensation for its services in connection with the Transaction, Bayline will be entitled to a fee equal in amount to 2.65% of the first $175,000,000 of consideration payable in the Transaction, plus 3.25% of any consideration payable in the Transaction in excess of $175,000,000. Bayline's fee will be paid by the issuance of Purchaser Common Shares equal in value to fifty percent (50%) of such fee (the "***Bayline Shares***") and the remaining fifty percent (50%) of such fee will be paid in cash. As such, Bayline will be entitled to receive its portion of any consideration (including any Earnout Payment) payable to the Company Stockholders under the Agreement. Bayline has confirmed to the Company the fees disclosed herein.

![](pg101-150_002.jpg)

**<u>Section 6.2</u>**

● Prior to the Closing, the Company will acquire Leef Investments, Inc., one of its existing stockholders, and issue to the stockholders of Leef Investments, Inc. an aggregate amount of 6,077,400 Company Common Shares equal to the amount of shares held by Leef Investments, Inc. in the Company.

● The Company will acquire Arvin and the solventless brand RDR.

● Upon the acquisition of Arvin, the Company will acquire a cannabis drying facility, which will be a new line of business.

● The Company will issue the Bayline Shares.

● The Company shall be permitted to raise up to $3.6 Million in the aggregate in an equity financing (in one or more closings) based upon a Company valuation of $100 Million to one or more investors identified by the Company.

---

| |
|:---|
| Yours faithfully, |
| /s/ Micah Anderson |
| Micah Anderson |
| Chief Executive Officer |
| LEEF Holdings, Inc. |
| We hereby accept the contents of this Disclosure Letter and acknowledge receipt of the same |
| Brandon Kao |
| lcanic Brands Company, Inc. |
| Brandon Kao |
| lcanic Merger Sub, Inc. |

---

---

| |
|:---|
| Yours faithfully, |
| Micah Anderson |
| Chief Executive Officer |
| LEEF Holdings, Inc. |
| We hereby accept the contents of this Disclosure Letter and acknowledge receipt of the same |
| /s/ Brandon Kou |
| Brandon Kou |
| Icanic Brands Company, Inc. |
| /s/ Suhas Patel |
| Suhas Patel |
| Icanic Merger Sub, Inc. |

---

**<u>APPENDIX A</u>**

**Company Capitalization Table**

(attached hereto)

![](pg101-150_003.jpg)

January 21, 2022

**PRIVATE AND CONFIDENTIAL**

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia, V6C 1H2

Dear Sirs:

---

| | |
|:---|:---|
| **Re:** | **Merger Agreement between Icanic Brands Company, Inc. (the "Company"), Icanic Merger Sub, Inc. and LEEF Holdings, Inc. ("LEEF") dated January 21, 2022 (the "Merger Agreement")** |

---

This letter constitutes the Purchaser Disclosure Letter (the "**Disclosure Letter**") as referred to in the Merger Agreement. The purpose of this Disclosure Letter is to set forth, in writing, certain additional disclosures, exceptions and exclusions contemplated or permitted by the Merger Agreement. Any capitalized terms used herein but not defined in this Disclosure Letter shall have the respective meanings attributed to such terms in the Merger Agreement.

Before dealing in detail with the various representations and warranties of the Company set out in the Merger Agreement, the Company makes the following general disclosures:

&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 information contained or referred to in this Disclosure Letter is to be treated as a disclosure by the Company to LEEF or the agreement
 of the Parties with respect to the matters disclosed herein, as the case may be, in respect of each and every covenant, representation,
 warranty, term and condition contained in the Merger Agreement to which such information may reasonably be regarded as being relevant
 (regardless of the section number references set forth below) and not solely in respect of any particular representation, warranty,
 covenant or condition contained in the Merger Agreement, provided that the relevance of the information so disclosed for any other
 section of the Merger Agreement or this Disclosure Letter is reasonably apparent on the face of such disclosure.

(b) where
 any statement contained in the text of this Disclosure Letter is in conflict with any information contained in any of the documents
 provided to the Company and it is reasonable to assume that the Company would have been misled thereby, the statement contained in
 the text of this Disclosure Letter shall prevail over the information contained in the relevant document;

(c) no
 reference to or disclosure of any item or other matter in this Disclosure Letter shall be construed as an admission or indication
 that such item or other matter is material, unless expressly stated;

(d) nothing
 in this Disclosure Letter constitutes an admission of any liability or obligation of the Company or any of its subsidiaries or affiliates
 to any third party, nor an admission against the interests of the Company or any of its subsidiaries or affiliate;

(e) notwithstanding
 paragraph (a) hereof, this Disclosure Letter and the information and disclosure contained in this Disclosure Letter are intended
 only to qualify and limit the representations, warranties and covenants of the Company contained in the Merger Agreement and shall
 not be deemed to expand in any way the scope or effect of any of such representations, warranties or covenants. This Disclosure Letter
 itself does not constitute or imply and shall not be construed as any representation, warranty, covenant, agreement, assurance or
 undertaking which is not expressly set out in the Merger Agreement; and

(f) disclosure
 of any information in this Disclosure Letter that is not strictly required under the Merger Agreement has been made for informational
 purposes only and does not imply disclosure of all matters of a similar nature.

All of the information contained in this Disclosure Letter is provided as of the date of this Disclosure Letter. This Disclosure Letter forms an integral part of the Merger Agreement and all references to the Merger Agreement include this Disclosure Letter. The titles and headings in this Disclosure Letter are for convenient reference only and are not to affect the interpretation of the Merger Agreement or this Disclosure Letter. This Disclosure Letter may not be amended, supplemented or otherwise modified except by written agreement signed by the Parties.

*[Remainder of page has been left intentionally blank]*

 

 

---

| | |
|:---|:---|
| Yours truly, | Yours truly, |
| IC**ANIC BRANDS COMPANY INC.** | IC**ANIC BRANDS COMPANY INC.** |
| By: | /s/ Brandon Kou |
| Name: | Brandon Kou |
| Title: | Chief Executive Officer |

---

The section number reference set forth below correspond to sections of the Merger Agreement.

**Section 3.1(b) – Capitalization of the Company**

The Company is authorized to issue unlimited common shares without par value and unlimited preferred shares without par value.

As of the date hereof, the Company has 13,852,998 options and 7,880,000 common share purchase warrants outstanding.

Share Exchange Agreement dated June 1, 2021 between the Company, De Krown Enterprises LLC ("**De Krown**") and the unitholders of De Krown whereby the Company shall issue additional common shares to the unitholders upon meeting certain conditions as set out in the Share Exchange Agreement.

Share Exchange Agreement dated April 7, 2021 between the Company, THC Engineering, LLC, THC Engineering Holdings, LLC and and the unitholders of De Krown whereby the Company shall issue additional common shares to the unitholders upon meeting certain conditions as set out in the Share Exchange Agreement.

**Section 3.1(c) – Subsidiaries**

---

| | | |
|:---|:---|:---|
| **Subsidiary** | **Jurisdiction** | **Ownership** |
| 1127466 B.C. Ltd. | British Columbia | Icanic Brands Company Inc. (100%) |
| 1200665 B.C. Ltd. | British Columbia | Icanic Brands Company Inc. (100%) |
| Canna Network Enterprise Inc. | California | Icanic Brands Company Inc. (100%) |
| Preferred Brand LLC | California | Icanic Brands Company Inc. (100%) |
| THC Engineering, LLC | California | Icanic Brands Company Inc. (100%) |
| THC Engineering Holdings, LLC | California | Icanic Brands Company Inc. (100%) |
| Ganja Gold Inc. | California | Icanic Brands Company Inc. (100%) |
| De Krown Enterprises, LLC | California | Icanic Brands Company Inc. (100%) |
| X-Sprays Industries Inc. | Delaware | 1127466 B.C. Ltd. (100%) |

---

The Company has a binding letter of intent to acquire all the issued and outstanding shares of common stock of Substance USA LLC.

**Section 3.1(d) – Cannabis Licenses**

---

| | | | |
|:---|:---|:---|:---|
| **Licensee** | **License** | **Jurisdiction** | **Term** |
| Canna Network Enterprise Inc. | Annual Manufacturing License (CDPH- 10002450) | California | April 15, 2021 to<br> April 15, 2022 |
| Preferred Brand LLC | Cannabis Manufacturer License Adult-Use and Medicinal (CDPH- 10004678) | California | August 12, 2021 to<br> August 12, 2022 |
| De Krown Enterprises, LLC | Annual Manufacturing License (10003571) | California | June 27, 2021 to<br> June 27, 2022 |

---

**Section 3.1(q) – Encumbrances**

Secured Loan Agreement between the Company and Block One Capital Inc. dated March 1, 2020 as amended. The Company is in the process of amending of the Secured Loan Agreement such that the security will be released. The Company expects the amendment to be completed on or around January 21, 2022.

**Section 3.1(r) – Permits**

Nil

**Section 3.1(s) – Intellectual Property**

There is a pending patent with the U.S Patent and Trademark (USPTO) office for an Automated Fill and Twist Machine and Method. The patent application is at the publication stage of the process pending power of attorney filing and any subsequent requests from the USPTO.

**Section 3.1(v) – Purchaser Transaction Approvals**

The Purchaser is required to file a Form 10 with the CSE.

**Section 3.1(y) – Real Property and Leases**

The Company, through 1200665 B.C. Ltd., holds title to 2917 East Alexander Road, North Las Vegas, Nevada 89030.

Lease Agreement dated January 2, 2020 between PCH Partners LLC and Preferred Brand LLC. for the premises located at 5135 Port Chicago Highway, Concord, California 94520.

Lease Agreement dated January 15<sup>th</sup>, 2022 between 6002 Warehouse Way Investors LLC and De Krown Enterprises, LLC for the premises located at 6002 Warehouse Way Sacramento, CA 95828.

Lease Agreement dated June 1<sup>st</sup>, 2020 between 8583 Holdings, LLC for the premises located at as 8583 Elder Creek Road, Suite 300, Sacramento, California 95828.

Lease Agreement dated September 23<sup>rd</sup>, 2016 between Wilcox Embarcadero Associates LLC and Canna Network Enterprise, Inc. for the premises located at 1001 22<sup>nd</sup> #400 Ave Oakland, CA 94606.

**Section 3.1(z) – Cease Trade Orders**

The Company currently has a Management Cease Trade Order issued on November 30<sup>th</sup>, 2021 with respect to the Company's failure to file the audited annual financial statements and accompanying management's discussion and analysis for the year ended July 31, 2021 by November 29, 2021.

**Section 3.1(bb) – Contracts exceeding $50,000**

Letter of Intent between the Company and Substance USA LLC dated August 30, 2021.

Share Exchange Agreement among the Company, THC Engineering, LLC, THC Engineering Holdings, LLC and unitholders of THC Engineering, LLC and THC Engineering Holdings, LLC dated April 7, 2021.

Share Exchange Agreement between the Company and de Krown Enterprise, LLC dated June 30th, 2021. Employment Agreement dated June 30<sup>th</sup>, 2021 between De Krown Enterprises, LLC and Stuart Chang.

Employment Agreement dated June 30<sup>th</sup>, 2021 between De Krown Enterprises, LLC and Josh Gjoraas. Employment Agreement dated June 30<sup>th</sup>, 2021 between De Krown Enterprises, LLC and Dave Johnson. Employment Agreement dated June 30<sup>th</sup>, 2021 between De Krown Enterprises, LLC and David Kirsch. Corporate Officer Engagement Agreement dated December 9, 2019 and Brandon Kou.

Executive Employment Agreement dated in January 2021 between the Company and Mark Austin Smith.

**Section 3.1(ee) – Employee Plans**

Stock option plan adopted by the board of directors on May 27, 2016.

Corporate Officer Engagement Agreement dated December 9, 2019 between the Company and Brandon Kou, which provides shares and warrants compensation based on meeting certain milestones.

Executive Employment Agreement dated in January 2021 between the Company and Mark Austin Smith, which provides a bonus payment of cash and shares based on meeting certain conditions.

**Section 3.1(ff) – Interest of Directors, Officers, associates and Affiliates**

Nil

**<u>Execution Copy</u>**

**CONDITIONAL PURCHASE AGREEMENT**

This Conditional Purchase Agreement (this "**Agreement**") is dated as of January 21, 2022 among Leef Holdings, Inc. ("**Leef**"), Micah Anderson (the "**Leef Representative**"), Mark Smith ("**Smith**"), Kamaldeep Thindal ("**Kam**") and Jagdish Thindal ("**Jagdish**") (Smith, Kam and Jagdish, collectively, the "**Grantors**" and each a "**Grantor**").

**WHEREAS** Leef and Icanic Brands Inc. (the "**Corporation**") are proposing to enter into a merger agreement (the "**Merger Agreement**") to combine their respective businesses by way of a three- cornered amalgamation pursuant to the laws of Nevada (the "**Transaction**").

**WHEREAS** the Grantors have agreed to sell the Option Shares (as defined herein) if the Conditions (as defined herein) are not satisfied following the closing of the Transaction, and no later than the Outside Date (as defined herein).

**NOW THEREFORE** in consideration of the foregoing premises, which are an integral part hereof, and in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

**1.** **DEFINITIONS**.

For purposes of this Agreement:

(a) "**Additional Board Appointment Condition**" means, following or concurrently with the appointment of the Leef Nominees to the Board, the
 appointment of the Additional Nominee to the Board;

(b) "**Additional Nominee**" means, in addition to the Leef Nominees, such other nominee to the Board to be determined by the Board; provided
 that if the Additional Nominee is appointed concurrently with the appointment of the Leef Nominees, the Additional Nominee shall
 be mutually agreed upon by the Board and the Leef Nominees.

(c) "**Aggregate Exercise Price**" has the meaning given to such term in Section 3(a);

(d) "**Board** "
 means the board of directors of the Corporation as constituted from time to time, and includes, for greater certainty, the board
 of directors of the Corporation following the consummation of the Transaction;

(e) "**Board Appointment Condition**" means the appointment of the Leef Nominees to the Board;

(f) "**Conditions** "
 means, collectively, the Financing Condition, the Board Appointment Condition, the Additional Board Appointment Condition and the
 Management Appointment Condition.

(g) "**Corporation Shares**" means the common shares in the capital of the Corporation;

(h) "**CSE** "
 has the meaning given to such term in the Recitals;

(i) "**Debt Security**" means any bond, debenture, note or other evidence of indebtedness of any kind, nature or description whatsoever;

(j) "**Effective Date**" has the meaning given to such term in Section 2(a);

(k) "**Equity Securities**" means the Corporation Shares and any other security of the Corporation that carries a residual right to participate
 in the earnings of the Corporation and, on liquidation or winding up of the Corporation, in its assets;

(l) "**Escrow Agent**" has the meaning given to such term in Section 6(a);

(m) "**Escrow Arrangements**" has the meaning given to such term in Section 6(a);

(n) "**Escrow Delivery Date**" has the meaning given to such term in Section 6(a);

(o) "**Financing** "
 means a private placement financing of at least $5,000,000 of Equity Securities at a price per Equity Security to be determined by
 the Board at the time of announcing the Financing, to be completed, in one tranche or multiple tranches, on or before the Financing
 Outside Date; provided that the Financing shall not be approved by the Board or publicly announced prior to the appointment of the
 Leef Nominees to the Board.

(p) "**Financing Outside Date**" has the meaning given to such term in Section 3(a)(i);

(q) "**Leef Nominees**" means two nominees to be selected by the Leef Representative or his successors or assigns in his sole and absolute
 discretion, such nominees expected, as of the date hereof, to be: (i) Micah Anderson, and (ii) such other individual as the Leef
 Representative may determine in his sole discretion;

(r) "**Market Capitalization**" means the number of issued and outstanding Corporation Shares as of the close of business on the date that
 such calculation is performed, multiplied by the closing price of the Corporation Shares on such date;

(s) "**Merger Agreement**" has the meaning given to such term in the Recitals;

(t) "**Management Appointment Condition**" means (i) the appointment of Micah Anderson as Co-CEO of the Corporation, and (ii) the appointment
 of Emily Heitman to an executive position with the Corporation to be determined;

(u) "**New Securities**" means any Equity Securities, Debt Securities or Share Rights which are issued by the Corporation for any reason;

(v) "**Option** "
 has the meaning given to such term in Section 3(a);

(w) "**Option Shares**" means 25,000,000 Corporation Shares;

(x) "**Outside Date**" means 90 days following the date of closing of the Transaction;

(y) "**Share Rights**" means warrants, stock options, exchangeable or convertible securities, subscriptions or other like rights to purchase
 or otherwise acquire Equity Securities;

(z) "**Transaction** "
 has the meaning given to such term in the Recitals; and

(aa) "**Triggering Event**" means, as applicable, the occurrence of any of the following: (i) the Financing having not been completed by the
 Financing Outside Date; (ii) the Board Appointment Condition having not been satisfied by the Outside Date; (iii) the Additional
 Board Appointment Condition having not been satisfied by the Outside Date; (iv) the Management Appointment Condition having not been
 satisfied by the Outside Date; or (v) any issuance of New Securities before the Board Appointment Condition is satisfied, other than
 New Securities issued in connection with the Transaction, the Financing or upon the exercise of any convertible securities of the
 Corporation outstanding on the date hereof.

**2.** **EFFECTIVE DATE** 

(a) Notwithstanding
 anything to the contrary contained herein, this Agreement shall only take effect and become binding upon the parties upon such date,
 and at such time, that the Transaction is consummated (the "**Effective Date** ").

**3.** **CONDITIONS AND OPTION GRANT** 

(a) For
 consideration received, the Grantors hereby irrevocably grant the Leef Representative, for, and on behalf of the Leef shareholders,
 the right, but not the obligation (the "**Option** "), exercisable to acquire all of the Option Shares from the Grantors
 for $1.00 (the "**Aggregate Exercise Price** "), upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Financing having not been completed by the date that is 6 months following the completion of the Transaction (the "**Financing Outside Date** ");

(ii) the
 Board Appointment Condition having not been satisfied by the Outside Date;

(iii) the
 Additional Board Appointment Condition having not been satisfied by the Outside Date; and

(iv) the
 Management Appointment Condition having not been satisfied by the Outside Date.

(b) The
 Leef Representative shall be entitled to exercise the Option in his sole and absolute discretion at any time following the occurrence
 of a Triggering Event. The Leef Representative may exercise the Option in whole, but not in part, by delivery of written notice to
 the Grantors and the Escrow Agent (as defined below) along with payment to Smith, on behalf of the Grantors, the Aggregate Exercise
 Price. Upon receipt of such notice and the Aggregate Exercise Price by Smith, the Grantors shall immediately execute any and all
 documents required by the Escrow Agent in order to cause the Option Shares to be transferred and delivered to the Leef Representative.
 For greater certainty, the parties acknowledge that following a Triggering Event, the Option shall remain in effect and be capable
 of being exercised in perpetuity.

(c) For
 greater certainty, the Grantors acknowledge and agree that the Option may be exercised if any Condition is not satisfied by the applicable
 outside date set forth in Section 3(a), irrespective of whether any of the other Conditions remain capable of being satisfied as
 of such date.

**4.** **ADDITIONAL ACKNOWLEDGMENTS OF THE GRANTORS – BOARD APPOINTMENT CONDITION** 

(a) The
 Grantors acknowledge that it is in the intention of the Corporation and Leef that following the implementation of the Board Appointment
 Condition and the Additional Board Appointment Condition set forth in Section 3, above, the Board of the Corporation will be comprised
 of five individuals as follows: (i) two nominees of the Corporation, (ii) the Leef Nominees, and (iii) the Additional Nominee. The
 Grantors agree to use all best efforts to cause the Corporation to, except with the prior written consent of the Leef Representative,
 maintain the size of the Board at five directors, and not appoint any additional nominees to the Board until such time that the Board
 Appointment Condition and Additional Board Appointment Condition are satisfied or this Agreement is otherwise terminated in accordance
 with its terms. If necessary, the Grantor agrees to use its best efforts to cause the Corporation to obtain such resignations as
 may be necessary from the current directors of the Corporation to ensure that the Board is constituted as contemplated under this
 Section 4(a) upon the appointment of the Leef Nominees and Additional Nominee to the Board.

(b) Notwithstanding
 anything to the contrary contained herein, the Grantors expressly acknowledge and agree that if any additional nominees are appointed
 to the Board without the consent of the Leef Representative before the appointment of the Leef Nominees and the Additional Nominee
 to the Board, the Board Appointment Condition shall be deemed incapable of being satisfied, and a Triggering Event shall be deemed
 to have occurred.

(c) For
 greater certainty, the Grantors acknowledge and agree that if the Board Appointment Condition is not satisfied for whatever reason
 (including the shareholders of the Corporation failing to elect the Leef Nominees to the Board), the Option shall remain in effect
 and be capable of being exercised by the Leef Representative in accordance with the terms of this Agreement.

**5.** **FINANCING AND NEW EQUITY ISSUANCES** 

(a) The
 Grantors acknowledge and agree that if the Corporation is unable to raise aggregate gross proceeds of at least $5,000,000 under the
 Financing, the Grantors (including any affiliates of the Grantors) shall be required to make up any shortfall out of their own funds,
 or, if applicable, fund the entire amount of the Financing if the Corporation is unable to locate any subscribers for the Financing.
 Notwithstanding the foregoing, if the Corporation is unable to complete the Financing from third-party investors or otherwise and
 the Grantors fail to backstop the Financing in accordance with this Section 5(a) by the Financing Outside Date, the Leef Representative
 shall be entitled to exercise the Option in accordance with the terms of this Agreement. .

**6.** **ESCROW** 

(a) On
 the Effective Date (the "**Escrow Delivery Date** "), the Grantors shall deliver to National Securities Administrators
 Ltd or such other escrow agent as agreed upon by the parties (the "**Escrow Agent**") all of the Option Shares, to
 be held in escrow by the Escrow Agent until such time as the Leef Representative exercises the Option or consents to terminate this
 Agreement (the "**Escrow Arrangements** "). On or prior to the Escrow Delivery Date, the Grantors shall immediately
 execute any and all documents required by the Escrow Agent in order to hold the Option Shares in escrow pursuant to the terms of
 this Agreement, including, without limitation, the Escrow Agreement appended hereto as Schedule "A".

(b) Until
 the date the earlier of the date when the Leef Representative exercises the Option and the date that the Merger Agreement is terminated
 in accordance with its terms, the Grantors hereby agree that they shall not sell, transfer, assign, give, bequeath, hypothecate,
 pledge, create a security interest in, or lien on, encumber, place in trust (voting or other), or otherwise dispose of all or any
 portion of their respective interest in the Option Shares, or enter into any agreement to do any of the foregoing. In the event that
 this Agreement is terminated, the Escrow Agent shall return the Option Shares to the Grantors.

**7.** **REPRESENTATIONS AND WARRANTIES.** 

Each of the Grantors, on his or her own behalf and not on the behalf of any other Grantor, hereby severally (and, for greater certainty, not jointly with any other Grantor) represents and warrants to the Leef Representative that, as of the Effective Date and at all times until the earlier of the Leef Representative's exercise of the Option or the date the Leef Representative consents to the termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Smith
 will be the registered and beneficial owner of 12,317,270 Corporation Shares that will be issued to Smith pursuant to his executive
 employment agreement immediately prior to the closing of the Transaction, free and clear of any mortgage, pledge, lien, charge, security
 interest, claim or other encumbrance.

(ii) Kam
 is the registered owner of 6,211,379 Corporation Shares, free and clear of any mortgage, pledge, lien, charge, security interest,
 claim or other encumbrance.

(iii) Jagdish
 is the registered owner of 6,471,351 Corporation Shares, free and clear of any mortgage, pledge, lien, charge, security interest,
 claim or other encumbrance.

(iv) Each
 Grantor is, or will be, the sole registered and beneficial owner of the Option Shares set forth opposite his or her name in Schedule
 "B" hereto, free and clear of any mortgage, pledge, lien, charge, security interest, claim or other encumbrance. Upon
 exercise of the Option, the Leef Representative will acquire the legal and beneficial ownership of such Option Shares free and clear
 of any mortgage, pledge, lien, charge, security interest, claim or other encumbrance.

(v) there
 are no voting trusts, proxies or other agreements or understandings in effect with respect to the voting, issuance or transfer of
 any of the Option Shares;

(vi) Each
 Grantor has all requisite power and authority to enter into this Agreement and the documents to be delivered hereunder, to carry
 out its obligations hereunder and to consummate the transactions contemplated hereby; and

(vii) the
 execution and delivery by each Grantor of this Agreement and the performance by each Grantor of its obligations hereunder does not
 require the consent of any other person.

**8.** **MISCELLANEOUS.** 

(a) *Obligations Joint and Several.* Any obligations owing to the Leef Representative by the Grantors under this Agreement (including, greater
 certainty, the obligation of the Grantors to sell the Option Shares to the Leef Representative upon exercise of the Option in accordance
 with the terms of this Agreement) shall be a joint and several obligation of the Grantors.

(b) *Successors and Assigns*. The rights under this Agreement may only be assigned (and only with all related obligations) in whole or in part
 by the Leef Representative. Any assignment by the Corporation, any Grantor or Leef may be made only with the prior written consent
 of the Leef Representative. The terms and conditions of this Agreement ensure to the benefit of and are binding upon the respective
 successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any
 party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities
 under or by reason of this Agreement, except as expressly provided herein.

(c) *Governing Law*. This Agreement shall be governed by the laws of the Province of British Columbia and the federal laws of Canada applicable
 therein without regard to any conflicts of laws provisions.

(d) *Counterparts*.
 This Agreement may be executed in two or more written, facsimile, PDF or other electronically delivered counterparts, each of which
 shall be deemed an original, but all of which together shall constitute one and the same instrument.

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

(f) *Notices*.
 Except as otherwise provided in this Agreement or required by law, any notice, demand or other communication required or permitted
 to be given pursuant to this Agreement shall have been sufficiently given for all purposes if, upon the earlier of actual receipt,
 or:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) personal
 delivery to the party to be notified;

(ii) when
 sent, if sent by electronic mail during normal business hours of the recipient, and if not sent during normal business hours, then
 on the recipient's next business day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) five
 days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or

(iv) one
 business day after deposit with a nationally recognized overnight courier, freight prepaid, specifying next business day delivery,
 with written verification of receipt.

All communications shall be sent to the respective parties at their address as set forth on the signature page or to such address as subsequently modified by written notice given in accordance with this Section.

(g) *Amendments and Waivers*. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
 generally or in a particular instance, and either retroactively or prospectively) only with the written consent of each of the parties.
 No waivers of or exceptions to any term, condition, or provision of this Agreement, in any one or more instances, shall be deemed
 to be or construed as a further or continuing waiver of any such term, condition, or provision.

(h) *Severability*.
 In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable
 in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such
 invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to
 the maximum extent permitted by law.

(i) *Entire Agreement*. This Agreement constitutes the full and entire understanding and agreement among the parties with respect to the subject
 matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly
 canceled.

(j) *Dispute Resolution*. The parties (i) hereby irrevocably and unconditionally submit to the exclusive jurisdiction of the courts in Vancouver,
 British Columbia for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (ii) agree
 not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the courts in Vancouver,
 British Columbia, and (iii) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit,
 action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property
 is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the
 venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or
 by such court.

(k) *Costs and Expenses*. The Corporation shall be responsible for all costs and expenses in connection with the transfer of the Option Shares
 to the Escrow Agent and all fees payable to the Escrow Agent in connection with the Escrow Arrangements. Each party will bear its
 own costs in respect of any disputes arising under this Agreement.

(l) *Delays or Omissions*. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any
 breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or
 non-defaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to any similar
 breach or default thereafter occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach
 or default theretofore or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise afforded to any
 party, shall be cumulative and not alternative.

(m) *Currency*.
 All references to dollars or to $ are references to U.S. dollars, unless otherwise specified. Canadian Dollar equivalents of U.S.
 Dollars on any day shall be determined with reference to the foreign exchange ratio then in effect as of the end of such trading
 day, as reported on Bank of Canada, and with respect to any period during which a volume weighted average is calculated, such volume
 weighted average shall be calculated by further weighting each trading day's activity by the foreign exchange ratio then in
 effect as of the end of such trading day, as reported on Bank of Canada.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF** the parties have executed this Agreement as of the date first written above.

---

| | | |
|:---|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: | /s/ Micah Anderson |  |
| Name: | MICAH ANDERSON |  |
| Title | CEO |  |
|  |  | /s/ Micah Anderson |
|  |  | **MICAH ANDERSON** |
|  |  | **MARK SMITH** |
|  |  | **KAMALDEEP THINDAL** |
|  |  | **JAGDISH THINDAL** |

---

---

| |
|:---|
| **IN WITNESS WHEREOF** the parties have executed this Agreement as of the date first written above. |
| **LEEF HOLDINGS, INC.** |
| By: |
| Name: |
| Title |

---

---

| |
|:---|
| **MICAH ANDERSON** |
| /s/ Mark Smith |
| **MARK SMITH** |
| /s/ Kamaldeep Thindal |
| **KAMALDEEP THINDAL** |
| /s/ Jagdish Thindal |
| **JAGDISH THINDAL** |

---

**SCHEDULE A**

**Escrow Agreement**

(see attached)

**ESCROW AGREEMENT**

**THIS AGREEMENT** is made as of the ________________ day of January, 2022,

**AMONG:**

**LEEF HOLDINGS INC.**, a corporation existing under the laws of the State of Nevada

("**Leef**")

- and –

**MICAH ANDERSON**, an individual resident in the State of California, in his capacity as representative of the shareholders of Leef

("**Leef Representative**")

- and –

**MARK SMITH**, an individual resident in the State of Colorado

("**Smith**")

- and -

**KAMALDEEP THINDAL**, an individual resident in the Province of British Columbia

("**Kam**")

- and -

**JAGDISH THINDAL**, an individual resident in the Province of British Columbia

("**Jagdish**" and together with Smith and Kam, the "**Grantors**")

- and -

**NATIONAL SECURITIES ADMINISTRATORS LTD.,** a company incorporated under the laws of the Province of British Columbia,

(the "**Escrow Agent**" and together with Leef, the Leef Representative and the Grantors, the "**Parties**")

**RECITALS**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Leef
 and Icanic Brands Company Inc. ()"**Icanic**") entered into a merger agreement (the "**Merger Agreement** ")
 dated January 21, 2022 to combine their respective businesses by way of a three-cornered amalgamation pursuant to the laws of Nevada
 (the "**Transaction** ").

B. Concurrently
 with the execution of the Merger Agreement, Leef, the Leef Representative and the Grantors entered into a conditional purchase agreement
 dated January 21, 2022 (the "**Conditional Purchase Agreement** "), appended as Schedule "A" hereto, pursuant
 to which the Leef Representative, for and on behalf of the shareholders of Leef (the "**Leef Shareholders**") acquired
 an option (the "**Option**") to purchase 25,000,00 common shares of Icanic held by the Grantors (the "**Escrow Shares**") if certain conditions are not satisfied by a certain specified date following the completion of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Pursuant
 to the terms of the Conditional Purchase Agreement, the Grantors have agreed, among other things, to place all of the Escrowed Shares
 in escrow with the Escrow Agent, to be released in accordance with the terms and conditions herein.

D. The
 parties have requested that the Escrow Agent act as escrow agent in connection with the escrow of the Escrowed Shares and in accordance
 with the terms of this Agreement.

**NOW THEREFORE** in consideration of the premises and mutual representations, warranties, covenants and agreements hereinafter set forth and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereby agree as follows:

**1.** **Appointment of Escrow Agent** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Leef,
 the Leef Representative and the Grantors hereby appoint the Escrow Agent to act as the escrow agent in accordance with the terms
 and conditions of this Agreement, and the Escrow Agent hereby agrees to act in accordance with the terms and conditions of this Agreement.
 For the purposes of this Agreement, all references herein to "Escrow Agent" will mean National Securities Administrators
 Ltd. acting in the capacity of escrow agent hereunder or any other person that replaces National Securities Administrators Ltd. as
 escrow agent hereunder pursuant to the provisions hereof.

(b) The
 Grantors shall pay the Escrow Agent fees as laid out in Schedule A, plus expenses reasonably incurred in connection with this Agreement,
 for acting as escrow agent (the "**Escrow Fees** ").

**2.** **Deposit of Escrowed Shares** 

The Grantors agrees with the Leef Representative that the Escrowed Shares will be delivered directly to the Escrow Agent to be deposited into escrow and released in accordance with the terms of this Escrow Agreement. The Escrow Agent will accept the Escrowed Shares upon their delivery and will hold the Escrowed Shares and administer the Escrowed Shares in accordance with the provisions of this Agreement. In addition, the Grantors will deliver to the Escrow Agent, concurrent with the execution hereof, an executed and undated stock transfer power of attorney in blank for the Escrowed Shares.

Upon any consolidation, amalgamation, arrangement, merger, redemption, compulsory acquisition or similar transaction of or involving the Escrowed Shares, or a sale or conveyance of all or substantially all the assets of Icanic to any other body corporate, trust, partnership or other entity (each, a "**Change of Control**"), other than the Transaction, the Escrow Agent shall receive and thereafter hold the consideration (the "**Replacement Consideration**") payable to holders of common shares in the capital of Icanic ("**Icanic Shares**"), including the Escrowed Shares. The Escrow Agent will accept the Replacement Consideration and will hold and administer the Replacement Consideration in accordance with the provisions of this Agreement on the same terms, *mutatis mutandis*, as the Escrowed Shares. Any cash that forms part of the Replacement Consideration will be held by the Escrow Agent in a segregated interest-bearing account for the benefit of the Leef Representative. If, in connection with a Change of Control, a holder of Icanic Shares may elect a form of consideration (including, without limitation, shares, other securities, cash or other property) from options made available, then the Escrow Agent will elect to receive an equal percentage of each of the different types of consideration offered, unless otherwise directed in writing by the Leef Representative prior to any applicable election deadline.

In the event that Icanic makes any distribution of cash, shares, other securities or other property (the "**Distributed Property**") to the holders of the Icanic Shares, including the Escrowed Shares, the Escrow Agent shall receive and thereafter hold the Distributed Property in respect of the Escrowed Shares. The Escrow Agent will accept the Distributed Property and will hold and administer the Distributed Property in accordance with the provisions of this Agreement on the same terms, *mutatis mutandis*, as the Escrowed Shares. Any cash that forms part of the Distributed Property will be held by the Escrow Agent in a segregated interest-bearing account for the benefit of the Leef Representative.

**3.** **Escrow Release** 

The Escrow Agent shall not release any Escrowed Shares until it receives written notice (the "**Release Notice**") from the Leef Representative and the Grantors that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) a
 Triggering Event (as such term is defined in the Conditional Purchase Agreement) has occurred and it has made a payment of $1.00
 to the Grantors, in which case the Escrow Agent shall be authorized to release the Escrowed Shares to the Leef Representative in
 accordance with the Release Notice; or

b) the
 Conditions (as such term is defined in the Conditional Purchase Agreement) have been satisfied, in which case the Escrow Agent shall
 be authorized to release the Escrowed Shares to the Grantors in accordance with the Release Notice.

Upon receipt of the Release Notice in the case of Section 3(a), the Escrow Agent shall be entitled to and shall take all steps necessary to re-register and deliver the Escrowed Shares as so directed by the Leef Representative in the Release Notice.

**4.** **Rights of Escrow Agent** 

**4.1** **Escrow Agent Not a Trustee** 

The Escrow Agent accepts duties and responsibilities under this Agreement and the Escrowed Shares and any share certificates or other evidence of these securities, solely as a custodian, bailee and agent. No trust is intended to be, or is or will be, created hereby and the Escrow Agent shall owe no duties hereunder as a trustee.

**4.2** **Escrow Agent Not Responsible for Genuineness** 

The Escrow Agent will not be responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity of any Escrowed Shares deposited with it.

**4.3** **Escrow Agent Not Responsible for Furnished Information** 

The Escrow Agent will have no responsibility for seeking, obtaining, compiling, preparing or determining the accuracy of any information or document, including the representative capacity in which a party purports to act, that the Escrow Agent receives as a condition to a release from escrow or a transfer of the Escrowed Shares within escrow under this Agreement.

**4.4** **Escrow Agent Not Responsible after Release** 

The Escrow Agent will have no responsibility for the Escrowed Shares that it has released in accordance with this Agreement.

**4.5** **Additional Provisions** 

(1) The
 Escrow Agent will be protected in acting and relying reasonably upon any notice, direction, instruction, order, certificate, confirmation,
 request, waiver, consent, receipt, statutory declaration or other paper or document (collectively referred to as "**Documents** ")
 furnished to it and purportedly signed by any officer or person required to or entitled to execute and deliver to the Escrow Agent
 any such Document in connection with this Agreement, not only as to its due execution and the validity and effectiveness of its provisions,
 but also as to the truth or accuracy of any information therein contained, which it in good faith believes to be genuine.

(2) The
 Escrow Agent will not be bound by any notice of a claim or demand with respect thereto, or any waiver, modification, amendment, termination
 or rescission of this Agreement unless received by it in writing, and signed by the other Parties and, if required, approved by the
 securities regulators with jurisdiction and, if the duties or indemnification of the Escrow Agent in this Agreement are affected,
 unless it has given its prior written consent.

(3) The
 Escrow Agent may consult with or retain such legal counsel and advisors as it may reasonably require for the purpose of discharging
 its duties or determining its rights under this Agreement and may rely and act upon the advice of such counsel or advisor. The Escrow
 Agent will give written notice to Leef, the Leef Representative and the Grantors as soon as practicable that it has retained legal
 counsel or other advisors. Grantors will pay or reimburse the Escrow Agent for any reasonable fees, expenses and disbursements of
 such counsel or advisors.

(4) In
 the event of any disagreement arising under the terms of this Agreement, the Escrow Agent will be entitled, at its option, to refuse
 to comply with any and all demands whatsoever until the dispute is settled either by a written agreement among the Parties or by
 a court of competent jurisdiction.

(5) The
 Escrow Agent will have no duties or responsibilities except as expressly provided in this Agreement, including any agreement referred
 to in this Agreement, to which the Escrow Agent is not a party.

(6) The
 Escrow Agent will have the right not to act and will not be liable for refusing to act unless it has received clear and reasonable
 documentation that complies with the terms of this Agreement. Such documentation must not require the exercise of any discretion
 or independent judgment.

(7) The
 Escrow Agent is authorized to cancel any share certificate delivered to it and hold the Escrowed Shares in electronic or uncertificated
 form only, pending release of such securities from escrow.

**4.6** **Limitation of Liability of Escrow Agent** 

The Escrow Agent will not be liable to any of the Parties hereunder for any action taken or omitted to be taken by it under or in connection with this Agreement, except for losses directly, principally and immediately caused by its bad faith, willful misconduct or gross negligence. Under no circumstances will the Escrow Agent be liable for any special, indirect, incidental, consequential, exemplary, aggravated or punitive losses or damages hereunder, including any loss of profits, whether foreseeable or unforeseeable. Notwithstanding the foregoing or any other provision of this Agreement, in no event will the collective liability of the Escrow Agent under or in connection with this Agreement to any one or more Parties, except for losses directly caused by its bad faith, willful misconduct or gross negligence, exceed the amount of its annual fees under this Agreement or the amount of $3,000.00, whichever amount shall be greater.

**4.7** **Remuneration of Escrow Agent** 

The Grantors will pay the Escrow Agent reasonable remuneration for its services under this Agreement, which fees are subject to revision from time to time on 30 days' written notice. The Grantors will reimburse the Escrow Agent for its expenses and disbursements. Any amount due under this section and unpaid 30 days after request for such payment, will bear interest from the expiration of such period at a rate per annum equal to the then current rate charged by the Escrow Agent, payable on demand.

In the event the Grantors fail to pay the Escrow Agent any amounts owing to the Escrow Agent hereunder, the Escrow Agent shall have the right not to act (including the right not to release the Escrowed Shares from escrow) and will not be liable for refusing to act until it has been fully paid all amounts owing to it hereunder. Further, in the event that the Grantors fail to pay the Escrow Agent its reasonable remuneration for its services hereunder, the Escrow Agent shall be entitled to charge Leef or the Leef Representative for any release of Escrowed Shares and shall have the right not to act (including the right not to release the Escrowed Shares) until such amounts have been paid to the Escrow Agent.

In the event that the Grantors have failed to pay the amounts owing the Escrow Agent hereunder, the Escrow Agent shall not be liable for any loss caused by a delay in the release of the Escrowed Shares.

**5.** **Interpleader** 

The Escrow Agent may, in its sole discretion, deliver the Escrowed Shares into court by way of interpleader if any person, whether or not a party hereto, sues or threatens to sue the Escrow Agent in connection with the Escrowed Shares or the actions or omissions of any of the parties hereunder including the Escrow Agent or if the Escrow Agent is unable or unwilling to continue acting and there is no replacement under Section 6 within 30 days after the written notice of resignation in Section 6 or in the event of any disagreement or apparent disagreement between the parties hereto resulting in conflicting claims or demands with respect to the Escrowed Shares or if any of the parties hereto, including the Escrow Agent, are in or appear to be in disagreement about the interpretation of this Agreement or about the rights and obligations of the Escrow Agent or the propriety of an action contemplated by the Escrow Agent under this Agreement. Upon the Escrow Agent making such delivery, the Escrow Agent shall be released from all its duties and obligations under this Agreement.

**6.** **Resignation of Escrow Agent** 

(1) If
 the Escrow Agent wishes to resign as escrow agent, the Escrow Agent will give written notice to Leef, the Leef Representative and
 the Grantors.

(2) If
 Leef, the Leef Representative and the Grantors wish to terminate the Escrow Agent as escrow agent, Leef, the Leef Representative
 and the Grantors will give written notice to the Escrow Agent.

(3) If
 the Escrow Agent resigns or is terminated, the Grantors will be responsible for ensuring that the Escrow Agent is replaced not later
 than the resignation or termination date by another escrow agent that is acceptable to the securities regulators having jurisdiction
 in the matter and that has accepted such appointment, which appointment will be binding on Leef, the Leef Representative and the
 Grantors.

(4) The
 resignation or termination of the Escrow Agent will be effective, and the Escrow Agent will cease to be bound by this Agreement,
 on the date that is 60 days after the date of receipt of the notices referred to above or on such other date as the Parties may agree
 upon (the "**resignation or termination date** "), provided that the resignation or termination date will not be less
 than 10 business days before a release date.

(5) If
 the Grantors have not appointed a successor escrow agent within 60 days of the resignation or termination date, the Escrow Agent
 will apply, at the Grantor's expense, to a court of competent jurisdiction for the appointment of a successor escrow agent
 and the duties and responsibilities of the Escrow Agent will cease immediately upon such appointment.

(6) On
 any new appointment under this section, the successor Escrow Agent will be vested with the same powers, rights, duties and obligations
 as if it had been originally named herein as Escrow Agent, without any further assurance, conveyance, act or deed. The predecessor
 Escrow Agent, upon receipt of payment for any outstanding account for its services and expenses then unpaid, will transfer, deliver
 and pay over to the successor Escrow Agent, who will be entitled to receive, all securities, records or other property on deposit
 with the predecessor Escrow Agent in relation to this Agreement and the predecessor Escrow Agent will thereupon be discharged as
 Escrow Agent.

(7) If
 any changes are made to Part 8 of this Agreement as a result of the appointment of the successor Escrow Agent, those changes must
 not be inconsistent with the terms of this Agreement.

**7.** **Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Indemnity.** In consideration of the premises and of the Escrow Agent agreeing to act hereunder, Leef, the Leef Representative and Grantors
 agree to save, defend and keep harmless and fully indemnify the Escrow Agent, its partners, associates, employees and agents, and
 their respective heirs, executors, administrators, successors and assigns, from and against all losses, costs, liabilities, charges,
 suits, demands, claims, damages (including consequential damages) and expenses of any nature which the Escrow Agent, its successors
 or assigns, may at any time hereafter bear, sustain, suffer or be put to for or by any reason of or on account of its acting as escrow
 agent or anything in any matter relating thereto or by reason of the Escrow Agent's compliance with the terms hereof. Notwithstanding
 any other provision of this Agreement, the Escrow Agent's liability shall be limited, in the aggregate, to the amount of fees
 paid by the Grantors to the Escrow Agent under this Agreement, provided that the foregoing shall not apply to any liability arising
 from the Escrow Agent's bad faith, fraud, wilful misconduct or gross negligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Not Obliged to Defend.** Without restricting the foregoing indemnity, if proceedings are taken by arbitration or in any court respecting
 the Escrowed Shares, the Escrow Agent shall not be obliged to defend or otherwise participate in any such proceedings until it shall
 have such security as the Escrow Agent determines, in its sole discretion, to be adequate for its costs in such proceedings in addition
 to the indemnity set out above.

(c) **Survival**.
 The provisions of Section 7(a) and Section 7(b) will survive the resignation or removal of the Escrow Agent or the termination of
 this Agreement.

(d) **Not to Expend Own Funds.** None of the provisions contained in this Agreement shall require the Escrow Agent to expend or to risk its
 own funds or otherwise to incur financial liability in the performance of any of its duties or in the exercise of any of its rights
 or powers unless funded and indemnified as aforesaid.

**8.** **Expenses** 

The Escrow Agent shall be entitled to be reimbursed for all documented expenses reasonably incurred in connection with acting hereunder, including without limitation, legal fees paid by the Escrow Agent in respect of this Agreement, such expenses and fees to be borne by the Grantors. The provisions of this Section 8 will survive the resignation or removal of the Escrow Agent or the termination of this Agreement.

**9.** **General** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notices.** Any notice, certificate, consent, determination or other communication required or permitted to be given or made under this Agreement
 shall be in writing and shall be effectively given and made if (i) delivered personally, (ii) sent by prepaid courier service or
 mail, or (iii) sent by email, or other similar means of electronic communication, in each case to the applicable address set out
 below:

If to Leef:

Leef Holdings, Inc.

5580 La Jolla Boulevard #395

La Jolla, CA 92037

Attention: Micah Anderson <br> Email: micah@leefca.com

If to the Leef Representative:

[●] 

Email: micah@leefca.com

If to Smith:

1187 Gore Trail

Cordillera, Colorado 81632

United States

Email: austinenergygroup@gmail.com

If to Kam or Jagdish:

[●] 

Email: [●]

If to the Escrow Agent:

National Securities Administrators Ltd.

702 – 777 Hornby Street

Vancouver, BC V6Z 1S4

Attention: Securities Processing <br> Email: admin@endeavortrust.com

Any such communication so given or made shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of emailing or sending by other means of recorded electronic communication, provided that such day in either event is a business day (at the place of receipt) and the communication is so delivered, emailed, or sent prior to 4:30pm (at the place of receipt) on such day. Otherwise, such communication shall be deemed to have been given and made and to have been received on the next following business day. Any such communication sent by mail shall be deemed to have been given and made and to have been received on the fifth business day following the mailing thereof; provided however that no such communication shall be mailed during any actual or apprehended disruption of postal services. Any such communication given or made in any other manner shall be deemed to have been given or made and to have been received only upon actual receipt.

Any party may from time to time change its address under this Section 9(a) by notice to the other parties given in the manner provided by this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Time of Essence.** Time shall be of the essence of this Agreement in all respects.

(c) **Further Assurances.** Each party shall promptly do, execute, deliver, or cause to be done, executed and delivered all further acts, documents
 and things in connection with this Agreement that another party may reasonably require for the purposes of giving effect to this
 Agreement.

(d) **Successors and Assigns.** This Agreement shall ensure to the benefit of, and be binding on, the parties and their respective successors and
 permitted assigns. No party may assign or transfer, whether absolutely, by way of security or otherwise, all or any part of its respective
 rights or obligations under this Agreement without the prior consent of the other parties.

(e) **Amendment**.
 No amendment of this Agreement will be effective unless made in writing and signed by all of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Entire Agreement**. This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement
 and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written. There are no conditions,
 warranties, representations or other agreements between the parties in connection with the subject matter of this Agreement (whether
 oral or written, express or implied, statutory or otherwise) except as specifically set out in this Agreement.

(g) **Waiver.** A waiver of any default, breach, or non-compliance under this Agreement is not effective unless in writing and signed by the
 parties to be bound by the waiver. No waiver shall be inferred from or implied by any failure to act or delay in acting by a party
 in respect of any default, breach or non-observance or by anything done or omitted to be done by another party. The waiver by a party
 of any default, breach, or non-compliance under this Agreement shall not operate as a waiver of that party's rights under this
 Agreement in respect of any continuing or subsequent default, breach or non-observance (whether of the same or any other nature).

(h) **Severability.** Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective
 to the extent of such prohibition or unenforceability and shall be severed from the balance of this Agreement, all without affecting
 the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

(i) **Governing Law**. This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the
 laws of Canada applicable in that Province and shall be treated, in all respects, as an British Columbia contract.

(j) **Counterparts.** This Agreement may be executed by the parties in separate counterparts (by original or facsimile signature) each of which when
 so executed and delivered shall be deemed to be an original, and all such counterparts shall together be construed as one and the
 same document.

(k) **Termination.** This Agreement may be terminated at any time by and upon the receipt of the Escrow Agent of a written notice of termination executed
 by Leef, the Leef Representative and the Grantors, directing the release of the Escrowed Shares to the Grantors and such termination
 will be effective immediately after compliance by the Escrow Agent with such direction. This Agreement shall automatically terminate
 if and when all of the Escrowed Shares shall have been distributed by the Escrow Agent in accordance with this Agreement.

**10.** **Privacy** 

The parties acknowledge that federal and/or provincial legislation that addresses the protection of individuals' personal information (collectively, "**Privacy Laws**") applies to certain obligations and activities under this Agreement. Notwithstanding any other provision of this Agreement, neither party shall take or direct any action that would contravene, or cause the other to contravene, applicable Privacy Laws. Leef, the Leef Representative and the Grantors shall, prior to transferring or causing to be transferred personal information to the Escrow Agent, obtain and retain required consents of the relevant individuals to the collection, use and disclosure of their personal information, or shall have determined that such consents either have previously been given upon which the parties can rely or are not required under the Privacy Laws. The Escrow Agent shall use commercially-reasonable efforts to ensure that its services hereunder comply with Privacy Laws. Specifically, the Escrow Agent agrees: (i) to have a designated chief privacy officer;

(ii) to maintain policies and procedures to protect personal information and to receive and respond to any privacy complaint or inquiry; (iii) to use personal information solely for the purposes of providing its services under or ancillary to this Agreement and to comply with applicable laws and not to use it for any other purpose except with the consent of or direction from Leef, the Leef Representative and the Grantors or the individual involved or as permitted by Privacy Laws; (iv) not to sell or otherwise improperly disclose personal information to any third party; and (v) to employ administrative, physical and technological safeguards to reasonably secure and protect personal information against loss, theft, or unauthorized access, use or modification.

**11.** **Right Not to Act** 

The Escrow Agent shall retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the Escrow Agent, in its sole judgment, acting reasonably, determines that such act might cause it to be in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline. Further, should the Escrow Agent, in its sole judgment, acting reasonably, determine at any time that its acting under this Agreement has resulted in its being in non-compliance with any applicable anti- money laundering or anti-terrorist legislation, regulation or guideline, then it shall have the right to resign on 10 days prior written notice sent to all parties hereby provided that: (i) the Escrow Agent's written notice shall describe the circumstances of such non-compliance; and (ii) that if such circumstances are rectified to the Escrow Agent's satisfaction within such 10 day period, then such resignation shall not be effective.

**[SIGNATURE PAGE FOLLOWS]**

---

| | | |
|:---|:---|:---|
| **IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written. | **IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written. | **IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written. |
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |  |
| Per: | |  |
|  | Authorized Signatory |  |
| **NATIONAL SECURITIES ADMINISTRATORS LTD.** | **NATIONAL SECURITIES ADMINISTRATORS LTD.** |  |
| Per: | |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatory |  |
| Per: | |  |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authorized Signatory |  |
|  |  | **MICAH ANDERSON** |
|  |  | **MARK SMITH** |
|  |  | **KAMALDEEP THINDAL** |
|  |  | **JAGDISH THINDAL** |

---

 

**SCHEDULE B**

**Grantor and Option Shares**

---

| | | |
|:---|:---|:---|
| <br>**Grantor** | **Number and Description of**<br> **Option Shares** | <br>**Share Certificate Number** |
| Mark Smith | 12317270 | N/A |
| Kamaldeep Thindal | 6211379 | ICAN.1001107 |
| Jagdish Thindal | 6471351 | ICAN.1001106 |

---

January 21, 2022

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Re: <u>Lock-Up Legend Removal</u>

Ladies and Gentlemen:

This letter agreement (this "**Letter Agreement**") is written and delivered in connection with that certain Merger Agreement dated as of the date hereof (the "**Merger Agreement**") by and among Icanic Brands Company Inc. (the "**Purchaser**"), a company incorporated pursuant to the *Business Corporations Act* (British Columbia), LEEF Holdings, Inc. (the "**Company**"), a Nevada corporation, Icanic Merger Sub, Inc., a Nevada corporation ("**Subco**"), and Micah Anderson, solely in his capacity as representative of the Company's stockholders (the "**Representative**"). Capitalized terms used, but not defined, herein shall have the meanings given to them in the Merger Agreement. The Purchaser, the Company and the Representative are entering into this Letter Agreement to memorialize certain additional agreements between them with respect to the release of certain lock-up obligations and the removal of legends in connection therewith.

Pursuant to Section 2.4(a) of the Merger Agreement, the Payment Shares issued to the Company Stockholders in connection with the Merger shall bear a restrictive legend prohibiting the sale and transfer of such Payment Shares in the amounts and for the periods of time set forth on Exhibit D to the Merger Agreement (the "**Lock-Up Restrictions**"). Notwithstanding such Lock-Up Restrictions, the Purchaser, the Company and Representative hereby agree that following the Closing and upon the mutual agreement of the Purchaser and the Representative, the Purchaser shall cause to be removed from any certificate evidencing the Payment Shares of any Company Stockholder the legends with respect to the Lock-Up Restrictions as necessary to permit the sale and transfer of any such Payment Shares in the amounts and at the times as mutually agreed to by the Purchaser and Representative as necessary to enable any such Company Stockholder to satisfy and discharge his, her or its respective tax liabilities resulting from the Merger.

This Letter Agreement is binding on and enforceable against the Purchaser, the Company and Representative notwithstanding any contrary provisions in the Merger Agreement. This Letter Agreement is made pursuant to and shall be governed by the laws of the State of California, without regard to conflict of law principles. No consents, waivers, or approvals under this Letter Agreement shall be effective unless agreed to in writing. This Letter Agreement may be executed in multiple counterparts which, taken together, shall constitute one and the same agreement. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

*[Signature Page Follows]*

 

If the above correctly reflects your understanding and agreement with respect to the foregoing matters, please so confirm by signing this Letter Agreement.

---

| | |
|:---|:---|
| Sincerely, | Sincerely, |
| LEEF HOLDINGS, INC. | LEEF HOLDINGS, INC. |
| By: | /s/ Micah Anderson |
| Name: | Micah Anderson |
| Title: | CEO |
| REPRESENTATIVE | REPRESENTATIVE |
| /s/ Micah Anderson | /s/ Micah Anderson |
| Micah Anderson | Micah Anderson |

---

Accepted and Agreed on

the date first above written:

ICANIC BRANDS COMPANY INC.

By:   <br> Name:   <br> Title:  

[Signature Page to Letter Agreement]

If the above correctly reflects your understanding and agreement with respect to the foregoing matters, please so confirm by signing this Letter Agreement.

---

| |
|:---|
| Sincerely, |
| LEEF HOLDINGS, INC. |
| By: |
| Name: |
| Title: |
| REPRESENTATIVE |
| Micah Anderson |

---

Accepted and Agreed on

the date first above written:

**ICANIC BRANDS COMPANY INC.**

---

| | |
|:---|:---|
| By: | /s/Brandon Kou |
| Name: | Brandon Kou |
| Title: | CEO |

---

[Signature Page to Letter Agreement]

**EXECUTION COPY**

**$500,000.00**

**PROMISSORY NOTE**

---

| | |
|:---|:---|
| **TO:** | **ICANIC BRANDS COMPANY, INC. (together with any of its successors and permitted assigns, the "Lender")** |
| **FROM:** | **LEEF HOLDINGS, INC. (together with any of its successors and permitted assigns, the "Borrower")** |
| **DATE:** | **OCTOBER** <u><sup>22__</sup></u> **, 2021** |

---

---

| | |
|:---|:---|
| 1. | *Definitions*. In this note, in addition to the terms defined above, the following definitions apply: |
|  | "**Business Combination**" means the proposed business combination transaction involving the Borrower and the Lender as contemplated in the Term Sheet (as defined below). |
|  | "**Business Combination Termination Event**" means the termination of the Term Sheet or the Definitive Agreement, other than as contemplated under a Leef Default Event. |
|  | "**Business Day**" means a day other than a Saturday, a Sunday, or any other day on which the principal chartered banks located in Vancouver, British Columbia or the State of California are not open for business. |
|  | "**Definitive Agreement"** means any definitive transaction agreement entered into between the Lender and the Borrower to effect the Business Combination. |
|  | "**Leef Default Event**" means the termination of the Term Sheet or the Definitive Agreement, as applicable, by the Lender if the Borrower breaches any representation, warranty, covenant or agreement contained in the Term Sheet or the Definitive Agreement and the Lender has determined, acting reasonably, and provided Notice to the Borrower in writing, that such breach was deliberate and undertaken in bad faith with a view to terminating or causing the termination of, the Term Sheet or the Definitive Agreement, as the case may be. |
|  | "**Maturity Date**" means the date that is 180 days immediately following the earlier of (i) the date that a Business Combination Termination Event occurs; and (ii) the date that a Leef Default Event occurs. |
|  | "**Notice**" means any notice, request, direction, or other document that a party can or must make or give under this note. |
|  | "**Person**" includes any individual, corporation, company, partnership, governmental authority, joint venture, association, trust, or any other entity. |
|  | "**Principal**" means the amount of $500,000.00. |
|  | "**Term Sheet**" means the binding term sheet dated August 18, 2021 entered into between the Borrower and the Lender to effect the Business Combination. |

---

2. *References to specific terms.* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Currency*.
 Unless specified otherwise, all dollar amounts expressed in this note refer to United States currency.

(b) "*Including*."
 Where this note uses the word "including," it means "including without limitation," and where it uses the
 word "includes," it means "includes without limitation."

---

| | |
|:---|:---|
| 3. | *Indebtedness*. For value received, unless the Maturity Date occurs as a result of a Business Combination Termination Event (in which case, $250,000 of the indebtedness under this note will be deemed to be automatically and irrevocably forgiven by the Lender in accordance with Section 6 of this note), the Borrower promises to pay to, or to the order of, the Lender the Principal in lawful money of the United States of America in immediately available funds at 789 West Pender Street, Suite 810, Vancouver, B.C. V6C 1H2 (or as the Lender may otherwise designate in writing from time to time) in the manner provided in this note. |
| 4. | *Interest.* The Principal, both before and after maturity, default or judgment and overdue interest on the Principal, both before and after default or judgment, shall bear interest computed on the outstanding daily principal balance of the Principal at the rate of 2% per annum, calculated monthly, not in advance, on the basis of a 365 day year (or in the case of a leap year, a 366 day year), based on the actual number of days elapsed, on a nominal rate basis without allowance or deduction for deemed re-investment or otherwise. Notwithstanding anything contained herein to the contrary, interest shall only begin to accrue on and after the date that is 180 days following the occurrence of a Business Combination Termination Event, or a Leef Default Event, as the case may be. |
| 5. | *Repayment*. The Borrower shall pay the Lender the Principal by 5:00 p.m. Eastern Time on the Maturity Date, *<u>provided that</u>* if the Maturity Date occurs as a result of a Business Combination Termination Event (in which case, $250,000 of the indebtedness under this note will be deemed to be automatically and irrevocably forgiven by the Lender in accordance with Section 6 of this note) only the remaining portion of the Principal (being |
|  | $250,000) will become payable on the Maturity Date in accordance with Section 6. Any payments not received by 5:00 p.m. Eastern Time on a Business Day will be deemed to have been received on the next Business Day. |
| 6. | *Forgiveness.* Notwithstanding anything contained herein to the contrary including, without limitation, Sections 3 and 5 of this note, if the Maturity Date occurs as a result of a Business Combination Termination Event, effective as of 12:00 p.m. Eastern Time on the date on which the Business Combination Termination Event occurs (the "**Effective Time**"), without any further or other act or formality on the part of the Borrower or the Lender whatsoever, the Lender will automatically be deemed to irrevocably forgive $250,000 of the Principal, and the remaining $250,000 of Principal owing to the Lender hereunder shall be repaid by the Borrower to the Lender on the Maturity Date. For greater certainty, if the Maturity Date occurs as a result of a Leef Default Event, the entire amount of the Principal (being $500,000) shall be repaid to the Lender on the Maturity Date in accordance with Section 5 of this note. |
| 7. | *Prepayment*. At any time prior to the Maturity Date, the Borrower may prepay the Principal either in whole at one time or in part from time to time without Notice to the Lender, penalty, or bonus whatsoever. |

---

8. *Security*.
 The Borrower and the Lender each acknowledge that this note is unsecured.

9. *No set-off*. The Borrower may exercise any right of set-off in connection with amounts that may be owed to the Borrower from time
 to time as against any amounts that the Borrower may owe under this note.

10. *Further assurances*. The Borrower, at its expense and at the Lender's request, shall sign (or cause to be signed) all further documents
 or do (or cause to be done) all further acts and provide all reasonable assurances as may reasonably be necessary or desirable to
 give effect to this note.

11. *Amendment*.
 This note may only be amended by a written document signed by each of the Borrower and Lender.

12. *Binding effect*. This note enures to the benefit of and binds the Borrower and the Lender and their respective successors and permitted
 assigns.

13. *Assignment*.
 Neither the Lender nor the Borrower may assign this note without the prior written consent of the other.

14. *Entire Agreement.* This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and
 shall supersede all previous expectations, understandings, communications, representations and agreements whether verbal or written
 between the parties with respect to the subject matter hereof, including, for greater certainty, the treatment of the $250,000 purchase
 price deposit contemplated under the Term Sheet. This note does not confer any rights or remedies upon any person other than the
 parties and their respective successors and permitted assigns.

15. *Notice*.
 To be effective, a Notice must be in writing and delivered (a) personally, either to the individual designated below for that party
 or to an individual having apparent authority to accept deliveries on behalf of that individual at its address set out below, (b)
 by registered mail, or (c) by electronic mail to the address or electronic mail address set out opposite the party's name below
 or to any other address or electronic mail address for a party as that party from time to time designates to the other parties in
 the same manner:

in the case of the Borrower, to:

**LEEF HOLDINGS, INC.**

5580 La Jolla Boulevard #395

La Jalla, California 92037

Attention: Micah Anderson <br> Email: micah@leef.ca

in the case of the Lender, to:

**ICANIC BRANDS COMPANY INC.**

789 West Pender Street, Suite 810

Vancouver, BC V6C 1H2

Attention: Mark Smith <br> Email: [<>]

Any Notice is effective (i) if personally delivered, as described above, on the day of delivery if that day is a Business Day and it was received before 5:00 p.m. local time in the place of receipt and otherwise on the next Business Day, (ii) if sent by registered mail, on the fourth Business Day following the day on which it is mailed, except that if at any time between the date of mailing and the fourth Business Day thereafter there is a disruption of postal service then, Notice must be given by means other than mail, or (iii) if sent by electronic mail, on the day the sender receives confirmation of receipt by return electronic mail from the recipient if that day is a Business Day and if that confirmation was received before 5:00 p.m. local time in the place of receipt, and otherwise on the next Business Day.

16. *Severability*.
 The invalidity or unenforceability of any particular term of this note will not affect or limit the validity or enforceability of
 the remaining terms.

17. *Waiver* 

(a) *General*.
 No waiver of satisfaction of a condition or breach or non-performance of an obligation (including any Default) under this note is
 effective unless it is in writing and signed by the party granting the waiver. No waiver under this section will be deemed to extend
 to a subsequent occurrence, whether or not that occurrence is the same or similar to the original occurrence that was waived nor
 will it affect the exercise of any other rights or remedies under this note. Any failure or delay in exercising any right or remedy
 will not constitute, or be deemed to constitute, a waiver of that right or remedy. No single or partial exercise of any right or
 remedy will preclude any other or further exercise of any right or remedy.

(b) *Specific*.
 The Borrower waives presentment for payment, demand, protest, Notice of any kind, and statutory days of grace in connection with
 this note. The Borrower agrees that it is not necessary for the Lender to first bring legal action in order to enforce payment of
 this note.

18. *Governing law*. The laws of British Columbia and the laws of Canada applicable in that province, excluding any rule or principle of conflicts
 of law that may provide otherwise, govern this note.

19. *Submission to jurisdiction*. The parties irrevocably attorn to the jurisdiction of the courts of
 British Columbia, which will have non-exclusive jurisdiction over any matter arising out
 of this note.

20. *Copy of note*. The Borrower acknowledges receipt of an executed copy of this note.

*[Remainder of page intentionally left blank. Signature page follows.]*

 

 

**EXECUTION COPY**

Dated as of the first date written above.

---

| | |
|:---|:---|
| ICANIC BRANDS COMPANY, INC. | ICANIC BRANDS COMPANY, INC. |
| By: | /s/ Brandon Kou |
| Name: | Brandon Kou |
| Title: | CEO |
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: | /s/ Micah Anderson |
| Name: | Micah Anderson |
| Title: | Chief Executive Officer |

---

**ACTION BY UANIMOUS WRITTEN CONSENT**

**OF THE BOARD OF DIRECTORS OF**

**LEEF HOLDINGS, INC., a Nevada corporation January 21, 2022**

Under and in accordance with Section 78.315 of Chapter 78 of the Nevada Revised Statutes (the "***NRS***") and the Bylaws of Leef Holdings, Inc., a Nevada corporation (the "***Company***"), the undersigned, constituting all of the members of the Company's Board of Directors (the "***Board***") hereby execute this instrument to evidence their consent to the taking of the actions set forth herein, and the adoption of the following preambles and resolutions without the holding of a meeting).

<u>**APPROVAL OF MERGER AGREEMENT AND RELATED ACTIONS**</u>

**WHEREAS**, the Board has fully reviewed and considered the price, terms and conditions of the proposed business combination with Icanic Brands Company Inc., a company incorporated pursuant to the *Business Corporations Act* (British Columbia) ("***Parent***"), proposed to be effected pursuant to a Merger Agreement by and among the Company, Parent, Icanic Merger Sub, Inc., a Nevada corporation and wholly-owned subsidiary of Parent ("***Merger Sub***"), and the Stockholders Representative (as defined therein, the "***Representative***"), including all exhibits and schedules attached thereto, in substantially the form attached hereto as <u>Exhibit A</u> (the "***Merger Agreement***"), pursuant to which the Company will be merged with and into Merger Sub, with the Company surviving as a wholly-owned subsidiary of Parent (such combination of transactions, the "***Transaction***");

**WHEREAS**, in connection with the Merger Agreement, the Board has considered all of the Company Ancillary Agreements (as defined in the Merger Agreement) referenced in the Merger Agreement attached thereto as exhibits (the "***Ancillary Agreements***");

**WHEREAS**, in making its determination to recommend the Merger Agreement and Transaction to the stockholders of the Company (the "***Stockholders***"), the Board considered, among other things, the following factors: (i) the consideration to be received by the Stockholders in the Transaction; (ii) the Company's prospects if it were to remain independent; (iii) the financial condition, results of operations and business and strategic objectives of the Company on both an historical and prospective basis, and current industry, economic and market conditions; (iv) the possible strategic growth opportunities that might be available to the Company absent the Transaction, and the belief, based on the review of such opportunities, that the Stockholders would benefit most from the potential Transaction; (v) the alternatives available to the Company, including the likelihood that the Company would be able to negotiate and consummate a transaction with another party; (vi) the strategic fit of the Company's business with that of Parent and its affiliates; (vii) the relative certainty associated with consummating a transaction with Parent; and (viii) the terms of the Merger Agreement, including the parties' representations warranties and covenants and the conditions to their respective obligations; and

**WHEREAS**, the Board has determined the following: (i) the Merger Agreement and the Transaction is advisable, fair and in the best interests of the Company and its Stockholders; (ii) it is advisable and in the best interests of the Company and the Stockholders to enter into definitive agreements with respect to the Merger and the other transactions contemplated by the Merger Agreement (including, without limitation, the Merger Agreement and the Company Ancillary Agreements to which the Company is a party); and (iii) it is advisable and in the best interests of the Company and the Stockholders that the Company take all such additional actions, including the actions set forth below, in connection with and in furtherance of the Merger and the other transactions contemplated by the Merger Agreement and Transaction.

**NOW, THEREFORE, BE IT RESOLVED**, that the Board hereby determines that the Merger Agreement and the Transaction (and the consideration to be paid to the Stockholders with respect thereto) are fair to, and in the best interests of, the Company and its Stockholders, and that the execution, delivery and performance of the Merger Agreement, the Ancillary Agreements and all other transactions, agreements, certificates, documents, exhibits and schedules contemplated thereby or related thereto (collectively, the "***Transaction Documents***"), are advisable and in the best interests of the Company and its Stockholders, and are hereby approved and adopted in all respects;

**RESOLVED FURTHER**, that the officers of the Company be, and each of them hereby is, authorized, directed and empowered to finalize negotiations with Parent and Merger Sub regarding the Transaction and the Transaction Documents and execute, deliver and perform the Transaction Documents to which the Company is a party in substantially the forms attached hereto or otherwise presented to the Board together with such changes, modifications or amendments thereto as any officer of the Company may approve, after consultation with the Company's counsel, and their execution and delivery thereof to be conclusive evidence of such approval as so executed and delivered and as may be changed, modified or amended;

**RESOLVED FURTHER**, that the Board hereby directs that the Transaction, the Transaction Documents and the transactions contemplated thereby be submitted to the Stockholders of the Company for approval and unanimously recommends that the Stockholders approve and adopt the Transaction, the Transaction Documents and the transactions contemplated thereby;

**RESOLVED FURTHER**, that the officers of the Company be, and each of them hereby is, authorized, directed and empowered to: (i) prepare, execute and deliver an information statement to the Stockholders of the Company that sets forth the material terms, conditions and other information regarding the Transaction Documents and the Transaction contemplated thereby; and (ii) generally take any and all actions necessary or advisable to solicit written consents and/or waivers of dissenters' rights from the Stockholders in connection with the approval and adoption of the Transaction Documents;

**RESOLVED FURTHER**, that the officers of the Company be, and each of them hereby is, authorized, directed and empowered to cause to be prepared and delivered on behalf of the Company to the Stockholders any other notices, agreements, certificates or other documents deemed necessary or advisable by the officers of the Company in connection with the approval and adoption of the Transaction Documents by the Company's Stockholders;

**RESOLVED FURTHER**, that, subject to obtaining the requisite consent of the Stockholders, the officers of the Company be, and each of them hereby is, authorized, directed and empowered to take all actions and to execute such documents as they may deem necessary or advisable in order to carry out the purposes of the foregoing resolutions and consummate the proposed Transaction and other transactions contemplated by the Transaction Documents, including the filing of a Articles of Merger with the Secretary of State of the State of Nevada in accordance with the NRS; and

**RESOLVED FURTHER**, that all acts and deeds heretofore done or actions taken by any officer of the Company in entering into, executing, acknowledging or attesting any arrangements, agreements, instruments or documents in carrying out the terms and intentions of the foregoing resolutions are hereby ratified, confirmed and approved in all respects.

<u>**APPROVAL OF ANCILLARY AGREEMENTS**</u>

**WHEREAS**, in connection with the Merger Agreement, it is proposed that the Company enter into that certain (i) Conditional Purchase Agreement, in substantially the form attached hereto as <u>Exhibit B</u> (the "***Option Agreement***"), and (ii) Escrow Agreement, in substantially the form attached hereto as Exhibit C (the "***Escrow Agreement***", and together with the Option Agreement, the "***Side Agreements***"); and

**WHEREAS**, the Board has determined (i) that the Side Agreements are advisable, fair and in the best interests of the Company and its Stockholders; (ii) that it is advisable and in the best interests of the Company and the Stockholders to enter into the Side Agreements; and (iii) to authorized the execution, delivery and performance thereof.

**NOW, THEREFORE, BE IT RESOLVED**, that the Board hereby determines that the Side Agreements are advisable, fair to, and in the best interests of, the Company and its Stockholders, and that the execution, delivery and performance of the Side Agreements and all other transactions, agreements, certificates, documents, exhibits and schedules contemplated thereby or related thereto, are advisable and in the best interests of the Company and its Stockholders, and are hereby approved and adopted in all respects;

**RESOLVED FURTHER**, that the officers of the Company be, and each of them hereby is, authorized, directed and empowered to execute, deliver and perform the Side Agreements, in substantially the forms attached hereto or otherwise presented to the Board together with such changes, modifications or amendments thereto as any officer of the Company may approve, after consultation with the Company's counsel, and their execution and delivery thereof to be conclusive evidence of such approval as so executed and delivered and as may be changed, modified or amended;

**RESOLVED FURTHER**, that, the officers of the Company be, and each of them hereby is, authorized, directed and empowered to take all actions and to execute such documents as they may deem necessary or advisable in order to carry out the purposes of the foregoing resolutions; and

**RESOLVED FURTHER**, that all acts and deeds heretofore done or actions taken by any officer of the Company in entering into, executing, acknowledging or attesting any arrangements, agreements, instruments or documents in carrying out the terms and intentions of the foregoing resolutions are hereby ratified, confirmed and approved in all respects

<u>**APPOINTMENT OF REPRESENTATIVE**</u>

**WHEREAS**, under the terms of the Merger Agreement, Micah Anderson shall act on behalf of the Company Stockholders (as defined in the Merger Agreement) as the Representative.

**NOW, THEREFORE, BE IT RESOLVED**, that the appointment of Micah Anderson as the Representative to act on behalf of the Company Stockholders in accordance with the terms, provisions and powers set forth in the Merger Agreement be, and hereby is, acknowledged, ratified and approved.

<u>**SIZE OF BOARD OF DIRECTORS**</u>

**WHEREAS**, pursuant to the terms of the Merger Agreement, upon the Effective Time (as defined in the Merger Agreement) of the Merger, the total number of directors that shall constitute the entire Board is to be fixed at two (2) directors; and

**WHEREAS**, upon the Effective Time, all of the Company's existing directors other than Micah Anderson and Emily Heitman shall resign as directors.

**NOW, THEREFORE, BE IT RESOLVED**, that effective immediately upon the Effective Time, the number of directors that shall constitute the entire Board be, and hereby is, fixed at two (2) directors; and

**RESOLVED FURTHER**, that effective immediately upon the Effective Time, the resignations of all directors of the Company other than Micah Anderson and Emily Heitman be, and hereby are, accepted.

<u>**APPOINTMENT OF OFFICERS**</u>

**WHEREAS**, the Board desires to appoint and confirm the officers of the Company as of the Effective Time of the Merger.

**NOW, THEREFORE, BE IT RESOLVED**, that effective immediately upon the Effective Time, the following individuals be, and hereby are, appointed and confirmed as the officers of the Company to the offices set forth besides their respective name, to hold such office at the pleasure of the Board and until their earlier death, resignation or removal:

---

| | |
|:---|:---|
| **Name** | **Title** |
| Micah Anderson | Chief Executive Officer and President |
| Emily Heitman | Chief Operating Officer |

---

<u>**GENERAL AUTHORIZATION**</u>

**RESOLVED**, that the officers of the Company be, and each of them hereby is, authorized, directed and empowered, for and on behalf of the Company, to execute all documents and take such further action, as they may deem necessary, appropriate or advisable to effect the purposes of each of the foregoing preambles and resolutions; and

**RESOLVED FURTHER**, that any and all actions heretofore taken by any officer of the Company in connection with the carrying out of the actions contemplated by these resolutions are hereby ratified, adopted, approved and confirmed in all respects as authorized acts in the name and on behalf of the Company and the Stockholders.

[SIGNATURE PAGE FOLLOWS]

**IN WITNESS WHEREOF**, the undersigned, being all of the members of the Board, have executed this Action by Unanimous Written Consent of the Board of Directors as of the date first set forth above. This action shall be filed with the minutes of the proceedings of the Board of Directors and shall be effective as of the date first above written. Any copy, facsimile or other reliable reproduction of this action may be substituted or used in lieu of the original writing for any and all purposes for which the original writing could be used, provided that such copy, facsimile or other reproduction be a complete reproduction of the entire original writing.

---

| |
|:---|
| /s/ Micah Anderson |
| Micah Anderson |
| /s/ Emily Heitman |
| Emily Heitman |
| /s/ Bryon James |
| Bryon James |

---

[WRITTEN CONSENT OF THE BOARD OF DIRECTORS]

<u>**EXHIBIT A**</u>

**Form of Merger Agreement**

**(attached hereto)**

EXHIBIT A-1

**MERGER AGREEMENT**

Made as of

Between

**ICANIC BRANDS COMPANY INC.**

**(the "Purchaser")** 

and

**LEEF HOLDINGS, INC.**

**(**the **"Company")** 

and

**ICANIC MERGER SUB, INC.**

**("Subco")**

and

**MICAH ANDERSON**

(the "**Stockholders Representative**")

MERGER AGREEMENT

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| ARTICLE 1 DEFINITIONS | 1 |
| &nbsp;&nbsp;&nbsp;Section 1.1 Definitions | 1 |
| ARTICLE 2 ACQUISITION | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.1 Agreement to Merge. | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.2 Merger Events | 11 |
| &nbsp;&nbsp;&nbsp;Section 2.3 Payment of Consideration and Exchange Procedures | 12 |
| &nbsp;&nbsp;&nbsp;Section 2.4 Legending of Payment Shares | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.5 Merged Corporation. | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.6 Fractional Shares. | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.7 Dissenting Shares. | 14 |
| &nbsp;&nbsp;&nbsp;Section 2.8 Effect of Merger. | 15 |
| &nbsp;&nbsp;&nbsp;Section 2.9 Filing of Articles of Merger. | 15 |
| &nbsp;&nbsp;&nbsp;Section 2.10 Earn-Out Payments | 15 |
| &nbsp;&nbsp;&nbsp;Section 2.11 Review of Earn-Out Payment Certificate | 16 |
| &nbsp;&nbsp;&nbsp;Section 2.12 Dispute Settlement | 17 |
| &nbsp;&nbsp;&nbsp;Section 2.13 Reasonable Cooperation | 18 |
| &nbsp;&nbsp;&nbsp;Section 2.14 Canadian Tax Treatment. | 18 |
| &nbsp;&nbsp;&nbsp;Section 2.15 Company Debentures | 18 |
| ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF PURCHASER | 19 |
| &nbsp;&nbsp;&nbsp;Section 3.1 Representations and Warranties of Purchaser. | 19 |
| ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY | 27 |
| &nbsp;&nbsp;&nbsp;Section 4.1 Representations and Warranties of the Company | 27 |
| ARTICLE 5 STOCKHOLDERS REPRESENTATIVE | 33 |
| &nbsp;&nbsp;&nbsp;Section 5.1 Stockholders Representative | 33 |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Section 5.2 Indemnification of Stockholders Representative | 35.0 |
| ARTICLE 6 COVENANTS OF THE COMPANY | 36.0 |
| &nbsp;&nbsp;&nbsp;Section 6.1 Necessary Consents | 36.0 |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Section 6.2 Conduct of Business of the Company | 37 |
| &nbsp;&nbsp;&nbsp;Section 6.3 All Other Action. | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.4 Updated Company Disclosure Letter. | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.5 Company Capitalization Spreadsheet. | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.6 Company Information Statement. | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.7 Audited Company Financial Statements | 39 |
| &nbsp;&nbsp;&nbsp;Section 6.8 Notices of Certain Events | 40 |
| ARTICLE 7 COVENANTS OF PURCHASER | 40 |
| &nbsp;&nbsp;&nbsp;Section 7.1 Necessary Consents | 40 |
| &nbsp;&nbsp;&nbsp;Section 7.2 Non-Solicitation. | 40 |
| &nbsp;&nbsp;&nbsp;Section 7.3 Conduct of Business of the Purchaser | 41 |
| &nbsp;&nbsp;&nbsp;Section 7.4 Reasonable Best Efforts. | 43 |
| &nbsp;&nbsp;&nbsp;Section 7.5 Notices of Certain Events | 43 |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;Section 7.6 Subco. | 43.0 |
| &nbsp;&nbsp;&nbsp;Section 7.7 Stockholder Approval. | 44.0 |
| &nbsp;&nbsp;&nbsp;Section 7.8 Warrant Exercise Price. | 44.0 |
| &nbsp;&nbsp;&nbsp;Section 7.9 Further Assurances | 44.0 |
| &nbsp;&nbsp;&nbsp;Section 7.10 Updated Purchaser Disclosure Letter | 44.0 |
| ARTICLE 8 CONDITIONS PRECEDENT | 45.0 |
| &nbsp;&nbsp;&nbsp;Section 8.1 Conditions for the Benefit of Purchaser. | 45.0 |
| &nbsp;&nbsp;&nbsp;Section 8.2 Conditions for the Benefit of the Company | 46.0 |
| ARTICLE 9 CLOSING | 48.0 |
| &nbsp;&nbsp;&nbsp;Section 9.1 Time of Closing. | 48.0 |
| &nbsp;&nbsp;&nbsp;Section 9.2 Company Closing Documents. | 48.0 |
| &nbsp;&nbsp;&nbsp;Section 9.3 Purchaser's Closing Documents. | 49.0 |
| ARTICLE 10 TERMINATION | 50.0 |
| &nbsp;&nbsp;&nbsp;Section 10.1 Termination | 50.0 |
| &nbsp;&nbsp;&nbsp;Section 10.2 Notice and Effect of Termination. | 51.0 |
| ARTICLE 11 INDEMNIFICATION | 51.0 |
| &nbsp;&nbsp;&nbsp;Section 11.1 Indemnification by the Company Stockholders. | 51.0 |
| &nbsp;&nbsp;&nbsp;Section 11.2 Indemnification by Purchaser. | 52.0 |
| &nbsp;&nbsp;&nbsp;Section 11.3 Survival of Representations and Warranties | 52.0 |
| &nbsp;&nbsp;&nbsp;Section 11.4 Limitation on Indemnification | 53.0 |
| &nbsp;&nbsp;&nbsp;Section 11.5 Indemnification Procedure. | 54.0 |
| &nbsp;&nbsp;&nbsp;Section 11.6 Remedies | 55.0 |
| &nbsp;&nbsp;&nbsp;Section 11.7 Adjustment to Purchase Price. | 55.0 |
| &nbsp;&nbsp;&nbsp;Section 11.8 Right to Bring Actions; No Contribution | 55.0 |
| &nbsp;&nbsp;&nbsp;Section 11.9 Set-Off. | 56.0 |
| ARTICLE 12 GENERAL | 56.0 |
| &nbsp;&nbsp;&nbsp;Section 12.1 Confidential Information; Press Release. | 56.0 |
| &nbsp;&nbsp;&nbsp;Section 12.2 Counterparts. | 57.0 |
| &nbsp;&nbsp;&nbsp;Section 12.3 Severability. | 57.0 |
| &nbsp;&nbsp;&nbsp;Section 12.4 Applicable Law; Jurisdiction; Venue. | 57.0 |
| &nbsp;&nbsp;&nbsp;Section 12.5 Arbitration | 58.0 |
| &nbsp;&nbsp;&nbsp;Section 12.6 Disclosure Schedule | 58.0 |
| &nbsp;&nbsp;&nbsp;Section 12.7 Successors and Assigns. | 58.0 |
| &nbsp;&nbsp;&nbsp;Section 12.8 Interpretation. | 58.0 |
| &nbsp;&nbsp;&nbsp;Section 12.9 Expenses | 59.0 |
| &nbsp;&nbsp;&nbsp;Section 12.10 Specific Enforcement | 59.0 |
| &nbsp;&nbsp;&nbsp;Section 12.11 Further Assurances. | 59.0 |
| &nbsp;&nbsp;&nbsp;Section 12.12 Entire Agreement. | 59.0 |
| &nbsp;&nbsp;&nbsp;Section 12.13 Notices. | 60.0 |
| &nbsp;&nbsp;&nbsp;Section 12.14 Waiver. | 61.0 |
| &nbsp;&nbsp;&nbsp;Section 12.15 Amendments. | 61.0 |
| &nbsp;&nbsp;&nbsp;Section 12.16 Remedies Cumulative. | 61.0 |
| &nbsp;&nbsp;&nbsp;Section 12.17 Currency. | 61.0 |
| &nbsp;&nbsp;&nbsp;Section 12.18 Number and Gender. | 61.0 |
| &nbsp;&nbsp;&nbsp;Section 12.19 Time of Essence. | 61.0 |

---

---

| | |
|:---|:---|
| **Exhibits and Appendix** | **Exhibits and Appendix** |
| Exhibit A | Form of Accredited Investor Certification Exhibit B |
| Exhibit B | Form of Employment Agreement |
| Exhibit C | Lock-Up Agreement |
| Exhibit D | Legending of Payment Shares |
| Appendix I | Earn-Out Example |

---

**MERGER AGREEMENT**

This Agreement is entered into on January 21, 2022 by and among Icanic Brands Company Inc. (the "**Purchaser**"), a company incorporated pursuant to the *Business Corporations Act* (British Columbia), LEEF Holdings, Inc. (the "**Company**"), a Nevada corporation, Icanic Merger Sub, Inc., a Nevada corporation ("**Subco**"), and Micah Anderson, solely in his capacity as representative of the Company Stockholders (the "**Stockholders Representative**"). Defined terms used herein have the meaning set forth in Section 1.1.

To the extent possible under the Tax Act, the Parties intend that for Canadian federal income purposes, an Eligible Holder shall be entitled to make a joint income tax election, pursuant to section 85 of the Tax Act (and any analogous provision of provincial income tax law), to have the Eligible Holder's disposition of their Company Common Shares pursuant to the Merger occur on a full or partial rollover basis.

Now, therefore, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties and covenants herein contained, the Parties agree as follows:

**ARTICLE 1**

**DEFINITIONS**

**Section 1.1** **Definitions**

In this Agreement (including the preamble, recitals and each Schedule hereto), the following terms have the meanings ascribed thereto as follows:

(1) "**Accredited Investor**" means an accredited investor as defined in Rule 501(a) under the U.S. Securities Act.

(2) "**Accredited Investor Certification**" means the Accredited Investor Certification, in substantially the form attached hereto as Exhibit A.

(3) "**Acquisition**" means the acquisition of the Company by Purchaser effected through the Merger.

(4) "**Affiliate**" has the meaning ascribed thereto in the BCBCA.

(5) "**Aggregate Company Shares Deemed Outstanding**" means the aggregate number of Company Common Shares issued and outstanding as of immediately prior to the Effective Time.

(6) "**Agreement**" means this Agreement and any instrument supplemental or ancillary hereto; and the expressions "**Article**", "**Section**", and "**subsection**" followed by a number means and refer to the specified Article, section or subsection of this Agreement.

(7) "**Ancillary Agreements**" means all agreements, certificates and other instruments delivered or given pursuant to this Agreement, including without limitation the Employment Agreement.

(8) "**Applicable Money Laundering Laws**" has the meaning ascribed thereto in Section 3.1(mm).

(9) "**Applicable Securities Laws**" means applicable securities legislation, securities regulation and securities rules, as amended, and the policies, notices, instruments and blanket orders having the force of law, in force from time to time.

(10) "**Arbitration**" has the meaning ascribed thereto in Section 12.5(a).

(11) "**Arbitrator**" has the meaning ascribed thereto in Section 12.5(a).

(12) "**Articles of Merger**" means the Articles of Merger as required pursuant to Section 92A.200 of the NRS to be filed with the Secretary of Sate of the State of Nevada to effect the Merger.

(13) "**Basket**" has the meaning ascribed thereto in Section 11.4(a).

(14) **"BCBCA"** means *Business Corporations Act* (British Columbia).

(15) "**BCC License**" means each and all Cannabis Licenses issued to the Company and its Subsidiaries by the State of California Bureau of Cannabis Control, as required for, or in connection with, the Company's business operations.

(16) "**Business Day**" means any day, other than a Saturday, Sunday or statutory holiday in Vancouver, British Columbia or in the State of California, United States.

(17) "**Cannabis License**" means any temporary, provisional or permanent permit, license, registration, variance, clearance, consent, commission, franchise, exemption, order, authorization, or approval from any Governmental Authority that regulates the cultivation, manufacture, processing, marketing, sale or distribution of cannabis products, whether for medical or recreational use, including but not limited to the annual cannabis license issued by the State of California (including by the Bureau of Cannabis Control, the California Department of Food and Agriculture or the California Department of Public Health, as applicable).

(18) "**Cash**" means the consolidated amount of cash and cash equivalents of the Purchaser, as defined by and determined in accordance with IFRS and shall also include any funds advanced to the Company with respect to the Company's cannabis manufacturing facility located in Arvin, California, including the Loan; provided, however, Cash shall (a) not include (i) any Restricted Cash or (ii) cash and cash equivalents in respect of uncollected accounts receivable (other than the Loan) and (b) be calculated net of any amounts required to cover wire transfers, automated clearing house transactions, checks and similar instruments issued by the Company which have not cleared.

(19) "**Claim**" means any claim, action, audit, suit, assessment, arbitration, mediation, litigation, demand, inquiry, governmental charge, order, hearing or any proceeding or investigation, in each case that is by or before any Governmental Authority, whether civil, criminal, investigative, informal, administrative or otherwise.

(20) "**Closing**" means the completion of the Acquisition in accordance with the terms and conditions of this Agreement.

(21) "**Closing Date**" means the Business Day on which all conditions set forth in Article 8 (other than those conditions that by their nature are to be satisfied or waived at the Closing, but subject to the satisfaction or waiver of those conditions) are satisfied or waived or such other Business Day as the Parties may agree to in writing.

(22) "**Closing Payment**" has the meaning ascribed thereto in Section 2.2(a)(i).

(23) "**Closing Press Release**" has the meaning ascribed thereto in Section 12.1(b)(ii).

(24) "**Code**" means the United States Internal Revenue Code of 1986, as amended.

(25) "**Company**" means LEEF Holdings, Inc., a corporation incorporated under the laws of Nevada.

(26) "**Company Auditors**" means MGO.

(27) "**Company Capitalization Spreadsheet**" means the spreadsheet delivered at Closing setting out the outstanding share capital of the Company, including the issued and outstanding Company Common Shares, Company Options, Company Warrants and Company Debentures, together with the address of record of each such holder.

(28) "**Company Common Shares**" means the shares of common stock of the Company, $0.001 par value per share.

(29) "**Company Debentures**" means each of the outstanding 9% Convertible Senior Secured Debentures due June 6, 2022 issued pursuant to the Company Indenture.

(30) "**Company Disclosure Letter**" means the disclosure letter dated as of the date hereof delivered by the Company to Purchaser prior to the execution and delivery of this Agreement.

(31) "**Company Financial Statements**" means (i) the unaudited income statement for the years ended December 31, 2019 and 2020 and for the five month period ended May 31, 2021, (ii) the unaudited statement of financial position as at December 31, 2019, December 31, 2020 and May 31, 2021, (iii) the unaudited statement of cash flows for the year ended December 31, 2020 and for the five month period ended May 31, 2021, and (iv) the unaudited statement of changes in equity as at December 31, 2020.

(32) "**Company Fundamental Representations**" shall mean the representations of the Company set forth in Section 4.1(a), (b), (f), (g), (h) and (m).

(33) "**Company Indenture**" means that certain Indenture dated June 6, 2019 by and among the Company and Odyssey Trust Company, as both Trustee and Collateral Agent thereunder.

(34) "**Company Key Personnel**" means each officer and director of the Company.

(35) "**Company Options**" means the outstanding stock options of the Company, as set forth in the Company Capitalization Spreadsheet, with each such option entitling the holder thereof to acquire the number of Company Common Shares set forth beside such holder's name on the Company Capitalization Spreadsheet, subject to adjustments, pursuant to the terms of the applicable option agreement.

(36) "**Company Revenue**" means the sum of (i) all Direct Revenue plus (ii) all Referred Revenue.

(37) "**Company Stockholder Indemnified Persons**" has the meaning ascribed thereto in Section 11.2.

(38) "**Company Stockholders**" means holders of the Company Common Shares.

(39) "**Company Warrants**" means common share purchase warrants of the Company, each entitling the holder thereof to acquire the number of Company Common Shares set forth beside such holder's name on the Company Capitalization Spreadsheet.

(40) "**Confidential Information**" means any information concerning the Company or Purchaser (the "**Disclosing Party**") or its business, properties and assets made available to the other party or its representatives (the "**Receiving Party**"); provided that it does not include information which (i) is generally available to or known by the public other than as a result of improper disclosure by the Receiving Party or pursuant to a breach of Section 12.1 by the Receiving Party, or (ii) is obtained by the Receiving Party from a source other than the Disclosing Party, provided that (to the reasonable knowledge of the Receiving Party) such source was not bound by a duty of confidentiality to the Disclosing Party or another party with respect to such information.

(41) "**Contract**" means, with respect to a Person, any contract, instrument, permit, concession, licence, loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, partnership or joint venture agreement or other legally binding agreement, arrangement or understanding, whether written or oral, to which the Person is a party or by which, to the knowledge of such Person, the Person or its property and assets is bound or affected.

(42) **"CSE"** means the Canadian Securities Exchange.

(43) "**Depositary**" means National Securities Administrators Ltd. or any other trust company, bank or other financial institution agreed to in writing by the Company and the Purchaser for the purpose of, among other things, exchanging certificates representing Company Common Shares for the Resulting Issuer Common Shares in connection with the Merger.

(44) "**Direct Revenue**" means the revenue of the Company and each of its Subsidiaries.

(45) "**Dissenting Shares**" means any Company Common Shares that are held by a Company Stockholder immediately prior to the Effective Time and in respect of which appraisal rights have been perfected in accordance with the NRS in connection with the Merger and have not been effectively withdrawn or lost (through failure to perfect or otherwise).

(46) "**DRS**" means the Direct Registration System of the Purchaser's transfer agent for Resulting Issuer Common Shares.

(47) "**Earn-Out Payments**" means collectively, the First Earn-Out Payment, the Second Earn-Out Payment and the Third Earn-Out Payment, and "**Earn-Out Payment**" means any one of them.

(48) "**Earn-Out Payments Certificate**" has the meaning ascribed thereto in Section 2.10.

(49) "**Earn-Out Payments Certificate Objection**" has the meaning ascribed thereto in Section 2.10.

(50) "**Earn-Out Payments Firm**" has the meaning ascribed thereto in Section 2.12.

(51) "**Effective Date**" means the day on which the Effective Time of the Merger occurs.

(52) "**Effective Time**" means the time of acceptance by the Secretary of State of the State of Nevada of the Articles of Merger in accordance with Section 92A.200 of the NRS or such later time as may be agreed to by the Parties and set forth in such filing for the effectiveness of the Merger.

(53) "**Eligible Holder**" means a beneficial owner of Company Common Shares immediately prior to the Effective Time (other than with respect to Dissenting Shares) who is: (a) a resident of Canada for purposes of the Tax Act (other than a Tax Exempt Person) or (b) a partnership any member of which is a resident of Canada for the purposes of the Tax Act (other than a Tax Exempt Person).

(54) "**Employee**" means an officer or employee of the Company, Purchaser or Subco.

(55) "**Employee Plan**" has the meaning ascribed thereto in Section 3.1(dd).

(56) "**Employment Agreement**" means the form of Employment Agreement, in substantially the form attached hereto as Exhibit B.

(57) "**Environmental Laws**" means all Laws relating to workplace safety or health, pollution or protection of the environment, including without limitation, laws relating to the exposure to, or Releases or threatened Releases of, hazardous materials, substances or wastes as the foregoing are enacted or in effect on or prior to Closing.

(58) "**Escrow Agreement**" means that certain escrow agreement to be dated as of the Closing Date, and substantially in the form agreed to by the Purchaser and Leef as of the date hereof, pursuant to which the Purchaser Common Shares issuable to Mark Smith under the Smith Employment Agreement shall be deposited.

(59) "**Exchange Ratio**" means an amount equal to the number of Payment Shares divided by the Aggregate Company Shares Deemed Outstanding (as shown on the Company Capitalization Spreadsheet), but excluding any Dissenting Shares.

(60) "**Expiration Date**" has the meaning ascribed thereto in Section 11.3(a).

(61) "**First Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(a).

(62) "**First Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(a).

(63) "**Fraud**" means common law fraud that is committed with actual (as opposed to imputed or constructive) knowledge of falsity and with the intention to deceive or mislead (as opposed to reckless indifference to the truth) another who is relying thereon (excluding, for the avoidance of doubt, any theory of fraud premised upon recklessness or gross negligence).

(64) "**Fundamental Representations**" means the Company Fundamental Representations and the Purchaser Fundamental Representations;

(65) "**GAAP**" means United States Generally Accepted Accounting Principles.

(66) "**Governmental Authority**" means and includes, without limitation, any national, federal government, province, state, municipality or other political subdivision of any of the foregoing, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation or other entity owned or controlled (through stock or capital ownership or otherwise) by any of the foregoing, including the CSE.

(67) "**Hazardous Materials**" means any materials or substances or wastes as to which liability or standards of conduct may be imposed under any Environmental Law.

(68) **"IFRS"** means International Financial Reporting Standards.

(69) "**include**" or "**including**" shall be deemed to be followed by the words "without limitation".

(70) "**Indemnifiable Claim**" has the meaning ascribed thereto in Section 11.5.

(71) "**Indemnification Notice**" has the meaning ascribed thereto in Section 11.5.

(72) "**Indemnified Party**" has the meaning ascribed thereto in Section 11.5.

(73) "**Indemnifying Party**" has the meaning ascribed thereto in Section 11.5.

(74) "**Information Statement**" has the meaning ascribed thereto in Section 6.6.

(75) "**Intellectual Property**" means, in any and all jurisdictions throughout the world, all (a) patents and patent applications, (b) registered trademarks, trade names, service marks, logos, corporate names, internet domain names, and any applications for registration of any of the foregoing, together with all goodwill associated with each of the foregoing, (c) registered and material unregistered copyrights, including copyrights in computer software, mask works and databases and (d) trade secrets and other proprietary know-how.

(76) "**JAMS**" has the meaning ascribed thereto in Section 12.5(a).

(77) "**Laws**" means all laws, statutes, by-laws, rules, regulations, orders, decrees, ordinances, protocols, codes, guidelines, policies, notices, directions and judgments or other requirements of any Governmental Authority applicable to the Company or Purchaser, other than U.S. Federal Cannabis Laws.

(78) "**Leased Real Property**" means any real property leased, subleased, licensed or otherwise used by the Company or the Purchaser, as applicable, as tenant, subtenant, licensee or occupant, as applicable, together with, to the extent leased by the Company or the Purchaser, as applicable. all buildings and other structures, facilities or improvements currently or hereafter located thereon, all fixtures, systems, equipment and items of personal property of the Company or the Purchaser, as applicable, attached or appurtenant thereto and all easements, licenses, rights and appurtenances relating to the foregoing.

(79) "**Leases"** has the meaning ascribed thereto in Section 3.1(y).

(80) "**Letter of Transmittal**" means that certain Letter of Transmittal included with the Information Statement to be delivered to the Company Stockholders.

(81) "**Loan**" means the $500,000 loan advanced by Purchaser to the Company pursuant to the promissory note dated October 22, 2021 between Purchaser and the Company.

(82) "**Lock-Up Agreement**" means that certain Lock-Up Agreement, in substantially the form attached hereto as Exhibit C.

(83) "**Losses**" shall mean all direct, out of pocket costs related to any awards, Liabilities, damages, bonds, dues, assessments, fines, penalties, Taxes, fees, costs (including costs of investigation, defense and enforcement of this Agreement), expenses or amounts paid in settlement (in each case, including reasonable attorneys' and experts' fees and expenses), whether or not involving a Third Party Claim. For

the avoidance of doubt Losses shall not include any indirect, incidental, consequential or punitive damages or diminution in value or lost profits.

(84) "**Material Adverse Change**" or **"Material Adverse Effect"** with respect to Purchaser or the Company, as the case may be, means any change (including a decision to implement such a change made by the board of directors or by senior management who believe that confirmation of the decision by the board of directors is probable), event, violation, inaccuracy, circumstance or effect that is materially adverse to the business, assets (including intangible assets), liabilities, capitalization, ownership, financial condition or results of operations of Purchaser or the Company, as the case may be, taken as a whole on a consolidated basis; *provided*, *however*, that in no event shall any of the following be deemed, either alone or in combination, to constitute, nor shall any of the following be taken into account in determining whether there has been, a Material Adverse Change or Material Adverse Effect with respect to such entity (except to the extent, in the case of clauses (i) through (iii) below, they have a disproportionate effect on such Party and its Subsidiaries, taken as a whole, as compared to the other companies in the industry in which such Party and its Subsidiaries operate): (i) changes in conditions in the U.S., Canadian or global economy, capital or financial markets generally, including, without limitation, changes in interest or exchange rates, (ii) changes in legal, tax, regulatory, political or business conditions that, in each case, generally affect the geographic regions or industries in which the Party and its Subsidiaries conduct business, (iii) changes in GAAP and/or IFRS, (iv) the negotiation, execution, announcement or performance of this Agreement or the transactions contemplated hereby or the consummation of the transactions contemplated by this Agreement, including, without limitation, the impact thereof on relationships, contractual or otherwise, with customers, suppliers, distributors, landlords, tenants, lenders, investors or employees, (v) acts of war, armed hostilities, sabotage or terrorism, or any escalation or worsening of any such acts of war, armed hostilities, sabotage or terrorism that do not disproportionately affect the Party or its Subsidiaries, (vi) any pandemic, epidemic or any publicly declared health emergency (including the COVID-19 virus); (vii) any action taken by the Party at the request of the other Party or (viii) any failure to meet internal or published projections, estimates or forecasts of revenues, earnings, or other measures of financial or operating performance for any period (provided that the underlying changes, events, circumstances, conditions or effects that contributed to such failure may be taken into account in determining whether such failure has resulted in a Material Adverse Change or Material Adverse Effect).

(85) "**Mergeco**" means the Company, which shall be the surviving corporation of the Merger of Subco with and into the Company pursuant to the Merger.

(86) "**Merger**" means the merger of Subco with and into the Company pursuant to the provisions of the NRS in the manner contemplated in and pursuant to the terms and conditions of this Agreement.

(87) "**Minimum Cash Balance**" means $3,000,000.

(88) **"NRS"** means the Nevada Revised Statutes.

(89) "**Ordinary Course**" means, with respect to the Company and Purchaser, as applicable, the operation of its business in a prudent and business-like manner consistent with the normal day-to-day operations of the business of such Party and in a manner consistent with past practice.

(90) "**Party**" means each of the Company, Purchaser, Subco and the Stockholders Representative and "**Parties**" means the Company, Purchaser, Subco and the Stockholders Representative.

(91) "**Pay-Out Dates**" means the First Pay-Out Date, the Second Pay-Out Date and the Third Pay-Out Date and "**Pay-Out Date**" means any of the First Pay-Out Date, the Second Pay-Out Date or the Third Pay-Out Date.

(92) "**Payment Shares**" means that number of Purchaser Common Shares equal to the higher of (a)

$120,000,000 or (b) two times the TTM Company Revenue for the period ended September 30, 2021, divided by the 30-day VWAP of the Purchaser Common Shares on the CSE for the period ended on the Business Day prior to the Closing Date, using the daily foreign exchange rate for Canadian to United States dollars published by the Bank of Canada on the date the 30-day VWAP of the Purchaser Common Shares on the CSE is determined.

(93) "**Permits**" has the meaning ascribed thereto in Section 3.1(r).

(94) "**Person**" includes an individual, corporation, partnership, joint venture, trust, unincorporated organization, the Crown or any agency or instrumentality thereof or any other juridical entity.

(95) "**Pro Rata Share**" means with respect to any Company Stockholder, a ratio (expressed as a percentage) equal to (a) the number of Company Common Shares held by such Company Stockholder as of immediately prior to the Effective Time divided by (b) the Aggregate Company Shares Deemed Outstanding.

(96) "**Purchase Price**" has the meaning ascribed thereto in Section 2.2(a).

(97) "**Purchaser**" has the meaning ascribed thereto on the first page of this Agreement.

(98) "**Purchaser Assets**" means the property and assets of Purchaser, of every kind and description and wheresoever situated.

(99) "**Purchaser Common Shares**" means the common shares in the capital of Purchaser.

(100) "**Purchaser Disclosure Letter**" means the disclosure letter dated as of the date hereof delivered by Purchaser to the Company prior to the execution and delivery of this Agreement.

(101) "**Purchaser Financial Statements**" means (i) the audited consolidated financial statements of the Purchaser for the years ended July 31, 2021 and 2020, prepared in accordance with IFRS, and (ii) the unaudited interim financial statements of the Company for the three month period ended October 31, 2021, prepared in accordance with IFRS.

(102) "**Purchaser Fundamental Representations**" shall mean the following representations of the Purchaser set forth in Section 3.1(a), (b), (c), (g), (h) and (i).

(103) "**Purchaser Indemnified Persons**" has the meaning ascribed thereto in Section 11.1.

(104) "**Purchaser Key Personnel**" means each officer and director of Purchaser.

(105) "**Purchaser Stock Option Plan**" means the stock option and incentive plan adopted by the shareholders of the Purchaser on May 27, 2016, as amended from time to time.

(106) "**Purchaser Transaction Approvals**" has the meaning ascribed thereto in Section 7.8(b).

(107) "**Referred Revenue**" means all revenue of Purchaser and its Subsidiaries (other than Direct Revenue) resulting from (i) the acquisition, whether by merger, stock sale or purchase of assets, of any Person by the Purchaser or its Subsidiaries that is first introduced by Micah Anderson and/or his Representatives or Affiliates, including without limitation, those Persons set forth in that certain written list delivered to Purchaser by Micah Anderson prior to the Closing Date, and (ii) sales and services to any Person that is directly referred to Purchaser and its Subsidiaries by the Company or Micah Anderson and/or his Representatives or Affiliates.

(108) "**Release**" means any release, spill, emission, discharge, leaking, pumping, injection, deposit, disposal, dispersal, leaching or migration into the environment (including, without limitation, ambient air, surface water, groundwater and surface or subsurface strata) or into or out of any property, including the movement of Hazardous Materials through or in the soil, surface water or groundwater.

(109) "**Representatives**" means, with respect to any Person, the advisors, attorneys, accountants, consultants or other representatives (acting in such capacity) retained by such Person or any of its controlled Affiliates, together with directors, officers and employees of such Person and its Subsidiaries.

(110) "**Requisite Stockholder Vote**" means the affirmative vote of greater than fifty percent (50.0%) of the issued and outstanding Company Common Shares as of the date of this Agreement approving this Agreement and the Merger.

(111) "**Restricted Cash**" means any trapped cash, cash security or performance deposits, cash escrow accounts, cash subject to a lockbox, dominion, control or similar agreement, cash held on behalf of or for the benefit of another Person or otherwise subject to any restrictions, limitations on use, or Taxes on use, transfer or distribution by Law, Contract or otherwise, including outstanding and un-cleared checks, wires in transit, repatriations, cash securing letters of credit obligations and customer, landlord or security deposits.

(112) "**Resulting Issuer**" means the Purchaser from and after the Effective Time.

(113) "**Resulting Issuer Common Shares**" means the common shares in the capital of the Resulting Issuer.

(114) "**Resulting Issuer Options**" means the options of the Resulting Issuer to be issued in exchange for the Company Options as provided in Section 2.2 hereof, with each such Resulting Issuer Option entitling the holder to purchase one Resulting Issuer Common Share.

(115) "**Second Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(b).

(116) "**Second Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(b).

(117) "**Signing Press Release**" has the meaning ascribed thereto in Section 12.1(b)(ii).

(118) "**Smith Employment Agreement**" means the executive employment agreement dated January 27, 2021 between Mark Smith and the Purchaser.

(119) "**Stockholders Representative**" has the meaning ascribed thereto on the first page of this Agreement.

(120) "**Subco**" means Icanic Merger Sub, Inc., a direct, wholly-owned subsidiary of Purchaser incorporated under the NRS for the sole purpose of effecting the Merger in accordance with the terms of this Agreement.

(121) "**Subsidiary**" means, when used with respect to any Person, any corporation, limited liability company, partnership, association, trust or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power (or, in the case of a partnership, more than 50% of the general partnership interests) are, as of such date, owned by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person; provided that, in the case of Purchaser, the term "Subsidiary" will be deemed to include Subco prior to the Effective Time and Mergeco following the Effective Time.

(122) "**Supplemental Indenture"** means a Supplemental Indenture entered into by and among Purchaser and Odyssey Trust Company, as both trustee and collateral agent thereunder, pursuant to Section 10.01(b) of the Company Indenture, pursuant to which Purchaser shall assume the duties and obligations of the Company under the Company Indenture and the Company Debentures outstanding thereunder as of Closing.

(123) "**Taxes**" means all taxes (including income tax, capital tax, payroll taxes, employer health tax, workers' compensation payments, property taxes and land transfer taxes), duties, royalties, levies, imposts, assessments, deductions, charges or withholdings and all liabilities with respect thereto including any penalty and interest payable with respect thereto.

(124) "**Tax Act**" means the *Income Tax Act* (Canada), as amended.

(125) "**Tax Exempt Person**" means a person who is exempt from tax under Part I of the Tax Act.

(126) **"Termination Date"** has the meaning ascribed thereto in Section 10.1.

(127) "**Third Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(c).

(128) "**Third Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(c).

(129) "**Third Party**" shall mean any Person other than Purchaser or the Company or their respective Affiliates.

(130) "**Third Party Claim**" mean any claim, demand, action, suit, proceeding or litigation asserted by a Third Party against any Party entitled to indemnification under Article 11 of this Agreement.

(131) **"TTM"** means the trailing 12-months.

(132) **"United States"** means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia.

(133) "**U.S. Federal Cannabis Laws**" means any U.S. federal law, civil, criminal or otherwise, that prohibit or penalize, the advertising, cultivation, harvesting, production, distribution, sale and possession of Cannabis and/or related substances or products containing or relating to the same, and related activities, including the prohibition on drug trafficking under the Controlled Substances Act (21 U.S.C. § 801, et seq.), the conspiracy statute under 18 U.S.C. § 846, the bar against aiding and abetting the conduct of an offense under 18 U.S.C. § 2, the bar against misprision of a felony (concealing another's felonious conduct) under 18 U.S.C. § 4, the bar against being an accessory after the fact to criminal conduct under 18 U.S.C. § 3, and federal money laundering statutes under 18 U.S.C. §§ 1956, 1957 and 1960.

(134) "**U.S. Securities Act**" means the United States Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

(135) "**VWAP**" means the volume-weighted average trading price.

**ARTICLE 2** 

**ACQUISITION**

**Section 2.1** **Agreement to Merge.**

Upon the terms and subject to the conditions contained in this Agreement, the Parties hereby agree to implement the Merger in accordance with the NRS. Purchaser shall, in its capacity as the sole stockholder of Subco, approve the Merger as soon as reasonably practicable with the intent that the same shall be completed on or before the date that is 60 days following the date hereof.

**Section 2.2** **Merger Events.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon
 the terms and subject to the conditions set forth in this Agreement, at the Effective Time, by virtue of the Merger and without any
 action on the part of the Company, Subco and Purchaser, or any holder of Company Common Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 issued and outstanding Company Common Share (other than Dissenting Shares) will automatically be converted into the right to receive:
 (A) a number of Resulting Issuer Common Shares equal to one multiplied by the Exchange Ratio (the "**Closing Payment** ");
 and (B) the Pro Rata Share of each Earn-Out Payment, if any, payable pursuant to Section 2.10 (the amounts payable pursuant to this
 Section 2.2(a)(i) collectively, the "**Purchase Price** "). For greater certainty, issued and outstanding Company Common
 Shares (other than Dissenting Shares) will be disposed of to the Purchaser by an Eligible Holder for the Purchase Price;

(ii) each
 Company Option outstanding immediately prior to the Effective Time will be cancelled and exchanged for one Resulting Issuer Option
 on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 number of Resulting Issuer Common Shares subject to the Resulting Issuer Option, rounded down to the nearest whole share, will equal
 the number of Company Common Shares issuable upon exercise of the Company Option immediately prior to the Effective Time, multiplied
 by the Exchange Ratio;

(B) the
 exercise price of each Resulting Issuer Option will equal the exercise price of the Company Option divided by the Exchange Ratio;

(C) the
 other terms and conditions of the Resulting Issuer Option will be equivalent to the terms and conditions of the Company Option, including
 with respect to term, expiry date and vesting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the
 Resulting Issuer Options will otherwise be governed by the Purchaser Stock Option Plan;

(E) it
 is the intention of the Parties that each Resulting Issuer Option issued pursuant to this Section 2.2(ii) shall continue to qualify
 following the Effective Time as an incentive stock option as defined in Section 422 of the Code to the extent permitted under Section
 422 of the Code and to the extent the related Company Option qualified as an incentive stock option immediately prior to the Effective
 Time; and

(F) notwithstanding
 Section 2.2(a)(ii)(B), the exercise price per share and the number of Resulting Issuer Common Shares purchasable pursuant to each
 exchanged for Company Option following the Effective Time as well as the terms and conditions of such option shall be adjusted, to
 the extent necessary, in order to comply with Sections 424(a) and 409A of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each
 outstanding Company Warrant will be assumed by Purchaser on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 number of Resulting Issuer Common Shares subject to the Company Warrant will equal the number of Company Common Shares issuable upon
 exercise of the Company Warrant immediately prior to the Effective Time, multiplied by the Exchange Ratio;

(B) the
 exercise price of each Company Warrant will equal the exercise price of the Company Warrant divided by the Exchange Ratio;

(C) the
 other terms and conditions of the Company Warrant will remain unchanged and will continue to be governed by the applicable warrant
 certificate evidencing such Company Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) each
 share of Subco common stock issued and outstanding immediately prior to the Effective Time shall be converted into and become one
 share of common stock of Mergeco such that Mergeco shall be a wholly-owned subsidiary of the Resulting Issuer. As consideration for
 the issuance of the Payment Shares, Mergeco shall issue Purchaser one share of Mergeco common stock for each Resulting Issuer Common
 Share issued to the Company Stockholders as a part of the Merger.

**Section 2.3** **Payment of Consideration and Exchange Procedures.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On
 the day immediately prior to the Effective Date, the Purchaser shall deposit in escrow pending
 the Effective Time, with the Depositary (the terms and conditions of such escrow to be satisfactory
 to the Parties, acting reasonably), sufficient Payment Shares to satisfy the Closing Payment
 to be paid to the Company Stockholders in accordance with Section 2.2(a)(i) of this Agreement.
 The Depositary shall hold the Payment Shares as agent and nominee for the Company Stockholders
 for distribution to such Company Stockholders and, following the Effective Time, the Depositary
 shall deliver the Payment Shares deposited with the Depositary to the Company Stockholders
 in accordance with Section 2.3(d) and the depositary agreement to be entered into among the
 Parties and the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following
 the Effective Time on the Effective Date, the original stock certificate of Subco registered in the name of Purchaser shall be cancelled
 and Purchaser shall be issued a stock certificate for the number of shares of the common stock of Mergeco to be issued to Purchaser
 as provided in Section 2.2(iv) hereof;

(c) Upon
 the Effective Time and subject to the treatment of Dissenting Shares in Section 2.7 hereof, certificates or other evidence representing
 the Company Common Shares, Company Options or Company Warrants, as applicable, shall cease to represent any claim upon or interest
 in the Company other than the right of the holder to receive, pursuant to the terms hereof and thereof, the Purchase Price, Resulting
 Issuer Options and Resulting Issuer Common Shares upon exercise of Company Warrants, respectively, in accordance with Section 2.2
 hereof;

(d) On
 or prior to the Effective Date, the Purchaser shall mail or otherwise cause to be delivered to each holder of record of Company Common
 Shares, at the address of record for such Company Stockholder: (i) a Letter of Transmittal for the surrender of stock certificates
 representing the Company Common Shares, (ii) an Accredited Investor Certification (for Company Stockholders that are a U.S. Person)
 and (iii) instructions for use in effecting the surrender of the Company Common Shares and certificates therefor to the Purchaser
 in exchange for the applicable portion of the Purchase Price. As soon as reasonably practicable after, but in no event more than
 five Business Days after the date that the Company Stockholder has surrendered the Company Common Shares for cancellation to the
 Purchaser, together with such Letter of Transmittal (including a completed and duly executed Accredited Investor Certification, if
 applicable) and any required Form W-9 or Form W-8, duly completed and validly executed in accordance with the instructions thereto
 (including all required deliverables), the holder of such Company Common Shares shall receive, and the Purchaser shall cause the
 Depositary, upon surrender thereof, to deliver share certificates or evidence of DRS entry in such Common Stockholder's name
 of the aggregate amount of Resulting Issuer Common Shares issuable to such Company Stockholder pursuant to Section 2.2(a)(i), and
 any Company Common Shares so surrendered to the Purchaser shall be canceled.

(e) As
 soon as practicable following the Effective Date, the Purchaser shall mail or otherwise cause to be delivered to each holder of Company
 Options, at the address set forth for such holder of Company Options on the Company Capitalization Spreadsheet the new Resulting
 Issuer Options in such holder's name pursuant to Section 2.2(a)(ii).

(f) As
 soon as practicable following the Effective Date, the Purchaser shall mail or otherwise cause to be delivered to each holder of a
 Company Warrant, at the address set forth for such holder of Company Warrants on the Company Capitalization Spreadsheet a written
 notice setting forth (i) the terms of the Company Warrant as adjusted pursuant to their terms and as provided for in Section 2.2(a)(iii),
 and (ii) that such Company Warrants will continue to be governed by the applicable warrant certificate as so adjusted.

**Section 2.4** **Legending of Payment Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company, on behalf of the Company Stockholders, acknowledges that at the discretion of the Purchaser and the Stock Representative,
 the Payment Shares issued as consideration to the Company Stockholders pursuant to this Agreement shall be issued bearing the legends
 set forth in Exhibit D attached hereto (in additional to any legend required pursuant to the U.S. Securities Act).

**Section 2.5** **Merged Corporation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Articles of Incorporation and the Bylaws of the Company shall be the Certificate of Incorporation and Bylaws of Mergeco, with any
 amendments thereto, to be made in accordance with applicable law at the Effective Time, as may be necessary to give effect to this
 Agreement, including the following provisions (i) through (vii):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Number of Directors.** The board of directors of Mergeco shall consist of a minimum of one (1) director and a maximum of two (2) directors.

(ii) **Officers and Directors**. As of the Effective Time, the initial directors of Mergeco shall be Micah Anderson and Emily Heitman. As of the
 Effective Time, the initial officers of Mergeco shall be:

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| | |
|:---|:---|
| Name | Title |
| Micah Anderson | Chief Executive Officer and President |
| Emily Heitman | Chief Operating Officer |

---

(iii) **Fiscal Year**. The fiscal year end of Mergeco shall be July 31 in each year, unless and until changed by resolution of the board of directors.

(iv) **Registered Office**. The registered office of Mergeco shall be the registered office of the Company.

(v) **Authorized Capital.** The authorized capital of Mergeco shall be 100,000,000,000 shares of common stock with a par value of $0.001 each, all
 of which shall be common stock.

(vi) **Business and Powers**. There shall be no restriction on the business that Mergeco may carry on or on the powers that Mergeco may exercise.

**Section 2.6** **Fractional Shares.**

No fractional Resulting Issuer Common Shares will be issued or delivered pursuant to the Merger. Any fractional share will be rounded down to the next lowest number and no consideration will be paid in lieu thereof.

**Section 2.7** **Dissenting Shares.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 any provision of this Agreement to the contrary, any Dissenting Shares shall not be converted
 into or represent a right to receive the Company Stockholder's Pro-Rata Share of the
 Purchase Price for Company Common Shares pursuant to Section 2.2(a)(i), but shall instead
 be converted into and represent only the right to receive such consideration as may be determined
 to be due with respect to any such Dissenting Shares pursuant to Section 92A.300 <u>et seq</u>.
 of the NRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 the provisions of Section 2.7(a), if any Company Stockholder who demands appraisal of such Company Common Shares under the NRS shall
 effectively withdraw or lose (through failure to perfect or otherwise) the right to appraisal, then, as of the later of (i) the Effective
 Time, or (ii) the occurrence of such event, such Company Stockholder's Company Common Shares shall automatically be converted
 into and represent only the right to receive such Company Stockholder's Pro-Rata Share of the Purchase Price as provided in
 Section 2.2(a)(i).

(c) The
 Company shall give Purchaser prompt notice of any written demands for appraisal of any Company Common Shares, withdrawals of such
 demands, and any other instruments that relate to such demands received by the Company. The Company shall not, except with the prior
 written consent of the Purchaser, make any payment with respect to any demands for appraisal of Company Common Shares or offer to
 settle or settle any such demands unless required by applicable Laws.

**Section 2.8** **Effect of Merger.**

---

| | |
|:---|:---|
| At the Effective Time: | At the Effective Time: |
| (a) | Subco shall merge with and into the Company in accordance with the NRS and the separate existence of Subco shall cease and the Company shall continue as the surviving corporation. |
| (b) | Mergeco shall possess all the rights, powers, privileges and franchise and be subject to all the obligations, liabilities and duties of the Company and Subco, all as provided under the NRS. |

---

**Section 2.9** **Filing of Articles of Merger.**

Following receipt of the Requisite Stockholder Vote and the approval of the stockholders of Subco to implement the Merger and subject to the satisfaction or waiver of all of the conditions precedent to the Merger set forth herein, the Company shall file the Articles of Merger and such other documents as required under the NRS to effect the Merger pursuant to the NRS.

**Section 2.10** **Earn-Out Payments**

Following the Effective Date and the completion of the transactions contemplated by this Agreement, Purchaser shall pay to the Company Stockholders, on a Pro Rata Share basis, the following performance earn-out payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 15
 months following Closing (the "**First Pay-Out Date** "), an amount equal to 10% of (A) the product equal to two times
 the TTM Company Revenue calculated for the 12-month period immediately following Closing minus (B) the Closing Payment (the "**First Earn-Out Payment** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 27
 months following Closing (the "**Second Pay-Out Date** "), an amount equal to 10% of (A) the product equal to two times
 the TTM Company Revenue calculated for the 12- month period immediately following the first anniversary of the Closing minus (B)
 the Closing Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment (the "**Second Earn-Out Payment** ");
 and

(c) 39
 months following Closing (the "**Third Pay-Out Date** "), an amount equal to 10% of (A) the product equal to two times
 the TTM Company Revenue calculated for the 12-month period immediately following the second anniversary of the Closing minus (B)
 the Closing Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment minus (D) any amounts paid pursuant to the
 Second Earn-Out Payment (the "**Third Earn- Out Payment** ").

By way of example and for illustrative purposes only, Appendix I, attached hereto, sets forth a sample calculation of each of the First Earn-Out Payment, the Second Earn-Out Payment and the Third Earn-Out Payment.

Each Earn-Out Payment will be payable in Resulting Issuer Common Shares (the "**Earn-Out Shares**") at a price per Earn-Out Share equal to the 30-day VWAP of the Resulting Issuer Common Shares for the period ending on the Business Day prior to the date of issuance. All Earn-Out Shares issuable pursuant to this Section 2.10 shall be issued in DRS entry in such Common Stockholder's name within five Business Days following final resolution of the applicable Earn-Out Payment Certificate pursuant to Section 2.10 or Section 2.12(b).

**Section 2.11** **Review of Earn-Out Payment Certificate**

Within 30 days following the applicable Pay-Out Date, Purchaser shall deliver to the Stockholders Representative a statement, executed by the Chief Financial Officer of Purchaser, setting forth Purchaser's good faith calculation of the applicable Earn-Out Payment, together with all supporting documentation (the "**Earn-Out Payments Certificate**"). If the Stockholders Representative disagrees with the computation of the applicable Earn-Out Payment set forth in the Earn-Out Payment Certificate, the Stockholders Representative may, within 30 calendar days after its receipt of the Earn- Out Payments Certificate, deliver a notice (an "**Earn-Out Payments Certificate Objection Notice**") to Purchaser setting forth in reasonable detail which components of the calculation and reasonable supporting details for such disagreement to the extent known at such time. If the Stockholders Representative agrees with the computation of the applicable Earn-Out Payment set forth in the Earn- Out Payment Certificate, the Stockholders Representative shall confirm same in writing to the Purchaser and the Earn-Out Payment Certificate shall be final and binding and the Purchaser shall effect the applicable Earn-Out Payment as soon as practicable and in any event, no later than five Business Days thereafter.

**Section 2.12** **Dispute Settlement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser
 and the Stockholders Representative will attempt in good faith to resolve any disagreements set forth in any Earn-Out Payments Certificate
 Objection Notice for a period of not less than 30 calendar days. Any disputed items resolved in writing between Purchaser and the
 Stockholders Representative within such 30 day period shall be final and binding with respect to such items and shall not be subject
 to appeal or further review, absent Fraud or manifest error. If Purchaser and the Stockholders Representative do not agree in writing
 on a final resolution of all objections set forth in the Earn-Out Payments Certificate Objection Notice within such 30 calendar days
 after delivery of any Earn-Out Payments Certificate Objection Notice, Purchaser and the Stockholders Representative will, as promptly
 as practicable, jointly retain an independent accounting firm of national recognition to be mutually agreed upon (the "**Earn-Out Payments Firm**") to resolve any remaining disagreements, which determination must be in writing and must set forth, in reasonable
 detail, the basis therefor and must be based solely on (i) the definitions and other applicable provisions of this Agreement, (ii)
 a single presentation (which presentations shall be limited to the remaining items in dispute set forth in the Earn-Out Payments
 Certificate Objection Notice (and not otherwise resolved by Purchaser and the Stockholders Representative in writing)) submitted
 by each of Purchaser and the Stockholders Representative to the Earn-Out Payments Firm within 15 calendar days after the engagement
 of such firm (which the Earn-Out Payments Firm shall forward to Purchaser or the Stockholders Representative, as applicable) and
 (iii) one written response submitted to the Earn-Out Payments Firm within 10 calendar days after receipt of each such other Party's
 presentation (which the Earn-Out Payments Firm shall forward to Purchaser or the Stockholders Representative, as applicable), and
 not on independent review, which such determination shall be conclusive and binding on each Party and the Company Stockholders, absent
 Fraud or manifest error. Purchaser and the Stockholders Representative shall use commercially reasonable efforts to cause the Earn-Out
 Payments Firm to render a written determination as to each disputed item and the amount of the applicable Earn-Out Payment within
 45 days of the date of its engagement, and Purchaser and the Stockholders Representative shall, and shall cause their respective
 Affiliates and Representatives to, cooperate with the Earn-Out Payments Firm during its engagement. In resolving any disputed item,
 the Earn-Out Payments Firm may not assign a value to any item greater than the greatest value for such item claimed by either Party
 or less than the smallest value for such item claimed by either Party. All communications with the Earn-Out Payments Firm must include
 each of Purchaser and the Stockholders Representative. In acting under this Agreement, the Earn-Out Payments Firm shall function
 solely as an expert and not as an arbitrator. Purchaser and the Stockholders Representative shall bear the costs and expenses of
 any dispute resolution pursuant to this Section 2.12, including the fees and expenses of the Earn-Out Payments Firm and any enforcement
 of the determination thereof, based on the percentage which the portion of the contested amount not awarded to each Party bears to
 the amount actually contested by such Party, which percentage allocation shall be calculated on an aggregate basis based on the relative
 dollar values of the amounts in dispute and shall be determined by the Earn-Out Payments Firm at the time the determination of such
 Earn-Out Payments Firm is rendered on the merits of the matters submitted. The fees and disbursements of the Representatives of each
 Party incurred in connection with the preparation or review of the Earn-Out Payments Certificate and preparation or review of any
 Earn-Out Payments Certificate Objection Notice, as applicable, shall be borne by such Party. The determination by the Earn-Out Payments
 Firm shall be conclusive and binding and judgment may be entered upon the written determination of the Earn-Out Payments Firm in
 accordance with this Section 2.12.

(b) The
 Earn-Out Payments Certificate shall be deemed final for the purposes of this Section 2.11
 upon the earliest of (i) the date Purchaser and the Stockholders Representative so agree
 in writing, (ii) the failure of the Stockholders Representative to deliver an Earn-Out Payments
 Certificate Objection Notice within thirty (30) calendar days of the date of receipt of the
 applicable Earn-Out Payments Certificate, and (iii) the resolution of all disputes, pursuant
 to Section 2.12, by Purchaser and the Stockholders Representative or the Earn-Out Payments
 Firm.

**Section 2.13** **Reasonable Cooperation.**

At all times prior to the date that the Earn-Out Payments are paid to the Company Stockholders in accordance with Section 2.10, Purchaser shall, and shall cause Mergeco and their respective Subsidiaries to, make available all financial records and personnel that the Stockholders Representative (including any of its Representatives) or the Earn-Out Payments Firm may request, at any time during normal business hours, in connection with the transactions contemplated by Section 2.10, 2.11 and 2.12 subject to execution by the Stockholders Representative of a confidentiality agreement to reasonably ensure the confidentiality of the information provided by Purchaser, Mergeco and their respective Subsidiaries.

**Section 2.14** **Canadian Tax Treatment.**

An Eligible Holder shall be entitled to make a joint income tax election, pursuant to section 85 of the Tax Act (and any analogous provision of provincial income tax law) with respect to the disposition of Company Common Shares under this Merger by providing two signed copies of the necessary joint election form(s) to an appointed representative, as directed by the Purchaser, within 60 days after the Effective Date, duly completed with the details of the Company Common Shares transferred and the applicable agreed amount for the purposes of such joint election(s). Purchaser shall, within 30 days after receiving the completed joint election form(s) from an Eligible Holder, and subject to such joint election form(s) being correct and complete and in compliance with requirements imposed under the Tax Act (or any analogous provision of provincial income tax law), sign and return such form(s) to such Eligible Holder for filing with the Canada Revenue Agency (or any applicable provincial taxation authority). Neither Purchaser, the Company nor any successor corporation shall be responsible for the proper completion and filing of any joint election form, and except for the obligation to sign and return the duly completed joint election form(s) which are received within 60 days of the Effective Date, for any taxes, interest or penalties arising as a result of the failure of an Eligible Holder to properly or timely complete and file such joint election form(s) in the form and manner prescribed by the Tax Act (or any applicable provincial legislation). In its sole discretion, Purchaser or any successor corporation may choose to sign and return a joint election form received by it more than 60 days following the Effective Date, but will have no obligation to do so.

**Section 2.15** **Company Debentures.**

The Purchaser acknowledges and agrees that following the Effective Time, (i) the Company Debentures will remain outstanding and will continue to be governed in accordance with the terms of the Company Indenture, (ii) that the transactions contemplated by this Agreement will constitute a "Liquidity Event" (as such term is defined in the Company Indenture) entitling the holders of the Company Debentures to convert their Company Debentures for Resulting Issuer Common Shares in accordance with the terms of the Company Indenture, and (iii) all obligations of the Company pursuant to the Company Indenture (including, for greater certainty, the obligation to repay the principal amount outstanding under each such Company Debenture) will become obligations of the Resulting Issuer. The Purchaser agrees to execute and enter into such documents as may be requested by Odyssey, as collateral agent, to give effect to the foregoing, including, without limitation, the Supplemental Indenture.

**ARTICLE 3**

**REPRESENTATIONS AND WARRANTIES OF PURCHASER**

**Section 3.1** **Representations and Warranties of Purchaser.**

Purchaser represents and warrants to and in favour of the Company as follows, and acknowledges that the Company is relying upon such representations and warranties in connection with the completion of the transactions contemplated herein:

---

| | |
|:---|:---|
| (a) | Each of Purchaser and Subco is a corporation incorporated and validly existing under the laws of their respective jurisdiction of incorporation. In each case, each such entity has all requisite corporate power and authority and is duly qualified and holds all Permits necessary or required to carry on its business as now conducted and in the case of Purchaser, to own, lease or operate the Purchaser Assets, and neither Purchaser nor, to the knowledge of Purchaser, any other Person, has taken any steps or proceedings, voluntary or otherwise, requiring or authorizing the dissolution or winding up of Purchaser or Subco, and Purchaser and Subco have all requisite corporate power and authority to enter into this Agreement and to carry out their obligations hereunder. |
| (b) | The authorized share capital of Purchaser consists of: (i) an unlimited number of Purchaser Common Shares, of which 238,235,947 Purchaser Common Shares are issued and outstanding as fully paid and non-assessable shares in the capital of Purchaser; and |
|  | (ii) an unlimited number of preferred shares, of which no preferred shares are issued and outstanding. Other than described in the Purchaser Disclosure Letter, there are no other options, warrants, other rights, agreements or commitments of any character whatsoever requiring the issuance, sale or transfer by Purchaser of any securities of Purchaser or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing a right to acquire any shares of Purchaser. |
| (c) | Other than as described in the Purchaser Disclosure Letter, Purchaser has no direct or indirect Subsidiaries nor any investment in any Person or any agreement, option or commitment to acquire any such investment. All of the issued and outstanding securities of Subco are held by Purchaser. Subco has no liabilities and is not party to any agreement other than this Agreement. |
| (d) | Purchaser is conducting its business in compliance in all material respects with all applicable Laws and regulations of each jurisdiction in which it carries on business and has not received a notice of non-compliance, and, to the knowledge of Purchaser, there are no facts that would give rise to a notice of material noncompliance with any such Laws and regulations. Each of Purchaser and its Subsidiaries and their respective Affiliates hold the applicable Cannabis Licenses required to conduct their present business. Each Cannabis License is in full force and effect in all material respects and has not been revoked, suspended, cancelled, rescinded, terminated, modified and has not expired. There are no pending or, to Purchaser's knowledge, threatened actions by or before any Governmental Authority to revoke, suspend, cancel, rescind, terminate and/or materially adversely modify any Cannabis License. True and complete copies of all of Cannabis Licenses held by Purchaser or its Subsidiaries have been made available to the Company and are set forth in Section 3.1(d) of the Purchaser Disclosure Letter. |

---

---

| | |
|:---|:---|
| (e) | No consent, approval, order or authorization of, or registration, declaration or filing with, any third party or Governmental Authority is required by or with respect to Purchaser and Subco in connection with the execution and delivery of and the performance by Purchaser and Subco of their respective obligations under this Agreement, the Ancillary Agreements and the consummation by Purchaser and Subco of the transactions contemplated hereunder and thereunder. |
| (f) | Since July 31, 2021, (i) Purchaser and its Subsidiaries have operated their respective businesses in the Ordinary Course, and (ii) there has not been any Material Adverse Change with respect to the Purchaser or any of its Subsidiaries. |
| (g) | Each of the execution and delivery of this Agreement and the applicable Ancillary Agreements, the performance by each of Purchaser and Subco of their obligations hereunder and thereunder and the consummation of the transactions contemplated in this Agreement and the applicable Ancillary Agreements, including the Merger and the issue of the Resulting Issuer Common Shares and Resulting Issuer Options and Resulting Issuer Common Shares issuable upon the exercise of the Resulting Issuer Options and Company Warrants in connection with the Merger, do not and will not conflict with or result in a material breach or violation of any of the terms or provisions of, or constitute a material default under (whether after notice or lapse of time or both), (i) any statute, rule or regulation applicable to Purchaser or Subco, including Applicable Securities Laws; |
|  | (ii) the constating documents, Bylaws or resolutions of Purchaser or Subco; (iii) any material mortgage, note, indenture, contract, agreement, joint venture, partnership, instrument, lease or other document to which Purchaser or Subco is a party or by which it is bound; or (iv) any judgment, decree or order binding Purchaser or Subco or their respective assets. Upon consummation of the Merger, the Company Stockholders will own the Payment Shares to which each such Company Stockholder is entitled free and clear of any liens. |
| (h) | This Agreement has been duly authorized and executed by Purchaser and Subco and constitutes a valid and binding obligation of each of them and shall be enforceable against each of them in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization, moratorium and other Laws relating to or affecting the rights of creditors generally and except as limited by the application of equitable principals when equitable remedies are sought, and by the fact that rights to indemnity, contribution and waiver, and the ability to sever unenforceable terms, may be limited by applicable Law. |
| (i) | Other than this Agreement, the Purchaser is not currently party to any binding agreement in respect of: (i) the purchase of any material property or assets or any interest therein or the sale, transfer or other disposition of any material property or assets or any interest therein currently owned, directly or indirectly, by the Purchaser whether by asset sale, transfer of shares or otherwise in excess of $100,000 in the aggregate; or (ii) the change of control of the Purchaser (whether by sale or transfer of shares or sale of all or substantially all of the property or assets of the Purchaser or otherwise). |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The
 Purchaser Financial Statements will be prepared in accordance with IFRS consistently applied throughout the periods referred to therein
 and present fairly, in all material respects, the financial position (including the assets and liabilities, whether absolute, contingent
 or otherwise as required by IFRS) of Purchaser as at such dates and the results of its operations and its cash flows for the periods
 then ended and contain and reflect adequate provisions or allowance for all reasonably anticipated liabilities, expenses and losses
 of Purchaser in accordance with IFRS and there has been no change in accounting policies or practices of Purchaser since July 31,
 2020. The Purchaser does not have any outstanding indebtedness or any liabilities or obligations including any unfunded obligation
 under any Employee plan, whether accrued, absolute, contingent or otherwise as of the date of the applicable Purchaser Financial
 Statements other than those required to be set forth in such Purchaser Financial Statements by IFRS and as disclosed in writing to
 the Company on or substantially concurrently with the date of this Agreement. The Purchaser Financial Statements will present fairly,
 in all material respects, the consolidated financial position, financial performance and cash flows of the Purchaser for the dates
 and periods indicated therein (subject, in the case of any unaudited interim financial statements, to normal period-end adjustments)
 and reflect reserves required by IFRS in respect of all material contingent liabilities, if any, of the Purchaser on a consolidated
 basis. There has been no material change in the Purchaser's accounting policies since July 31, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Purchaser
 is a taxable Canadian corporation for Canadian tax purposes and all Taxes due and payable or required to be collected or withheld
 and remitted, by Purchaser and Subco have been paid, collected or withheld and remitted as applicable. All tax returns, declarations,
 remittances and filings required to be filed by Purchaser and Subco have been filed with all appropriate Governmental Authorities
 and all such returns, declarations, remittances and filings are complete and accurate and no material fact or facts have been omitted
 therefrom which would make any of them misleading. Purchaser has not received notice of any examination of any tax return of Purchaser
 or Subco, and to the knowledge of Purchaser, no such examination is currently in progress by any Governmental Authorities and there
 are no issues or disputes outstanding with any Governmental Authorities respecting any Taxes that have been paid, or may be payable,
 by Purchaser or Subco. There are no agreements, waivers or other arrangements with any taxation authority providing for an extension
 of time for any assessment or reassessment of Taxes with respect to Purchaser and its Subsidiaries.

(l) The
 Purchaser maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are
 executed in accordance with management's general or specific authorization; and (ii) transactions are recorded as necessary
 to permit preparation of financial statements (including the Purchaser Financial Statements) in conformity with IFRS and to maintain
 accountability for assets.

(m) The
 Purchaser's current auditors who will audit the Purchaser Financial Statements are independent with respect to the Purchaser
 within the meaning of the rules of professional conduct applicable to auditors in Canada and there has never been a "reportable
 event" (within the meaning of National Instrument 51-102 – *Continuous Disclosure Obligations*) with the current
 or, to the knowledge of the Purchaser, any predecessor auditors of the Purchaser during the last three years.

(n) No
 Person is entitled to any pre-emptive or any similar rights to subscribe for any Purchaser Common Shares or other securities of Purchaser
 and no rights to acquire, or instruments convertible into or exchangeable for, any securities in the capital of Purchaser or Subco
 are outstanding.

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|:---|:---|
| (o) | No legal or governmental actions, suits, judgments, investigations or proceedings are pending to which Purchaser or Subco, or to the knowledge of Purchaser, the directors or officers of Purchaser or Subco are a party, or to which the Purchaser Assets are subject and, to the knowledge of Purchaser, no such proceedings have been threatened against or are pending with respect to Purchaser or Subco, or with respect to the Purchaser Assets and neither Purchaser or Subco is subject to any judgment, order, writ, injunction, decree or award of any Governmental Authorities. Neither Purchaser, nor any of its Subsidiaries, nor any of the Purchaser Assets or properties, is subject to any material outstanding judgment, order, writ, injunction or decree applicable to Purchaser or any of its subsidiaries on a consolidated basis. |
| (p) | Neither the Purchaser nor Subco is in violation of its organizational documents or in default, in any material respect, in the performance or observance of any obligation, agreement, covenant or condition contained in any material Contract to which it is a party or by which it or its property and the Purchaser Assets may be bound and all material Contracts to which the Purchaser is a party are in good standing in all respects and in full force and effect. |
| (q) | Except as set forth in Section 3.1(q) of the Purchaser Disclosure Letter, the Purchaser owns or has all necessary rights to use (as currently used) all material property and assets owned or used that are necessary in the conduct of the business of the Purchaser as now conducted free and clear of any actual, pending or, to the knowledge of the Purchaser, threatened claims, liens, charges, options, set-offs, free-carried interests, royalties, encumbrances, security interests or other interests whatsoever other than such security interests, liens and encumbrances granted in the Ordinary Course of business by the Purchaser. Such assets comprise all of the assets, properties and rights used in or necessary to the conduct of the business of the Purchaser and are adequate and sufficient to conduct the business of the Purchaser. |
| (r) | Except as set forth in Section 3.1(r) of the Purchaser Disclosure Letter, the Purchaser holds all material permits, licenses, approvals, consents, orders, markings, certificates and like authorizations necessary for it to own, lease and license its property and the Purchaser Assets and carry on its business, as now carried on as of the date of this Agreement, in each jurisdiction where such business is carried on, including, but not limited to, permits, licenses, approvals, consents, orders, certificates and like authorizations from Governmental Authorities(collectively, the "**Permits**"). |
| (s) | Section 3.1(s) of the Purchaser Disclosure Letter sets forth a complete and accurate list of all of the following that constitutes material Intellectual Property: (i) registered Intellectual Property, (ii) pending applications for registration of Intellectual Property, |
|  | (iii) all computer software (other than commercially available, off-the-shelf software with a replacement cost or annual license fee of less than $10,000), and (iv) trade or corporate names and material unregistered trademarks and service marks. Except as would not, individually or in the aggregate, have a Material Adverse Effect with respect to the Purchaser, (i) to the knowledge of the Purchaser, (A) the conduct of the Purchaser's business as currently conducted does not infringe or otherwise violate any Person's registered Intellectual Property and (B) there is no claim of such infringement or other violation pending or to the knowledge of the Purchaser, threatened in writing, against the Purchaser, and (ii) to the knowledge of the Purchaser (A) no Person is infringing or otherwise violating any Intellectual Property owned by the Purchaser and |

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| | |
|:---|:---|
|  | (B) no claims of such infringement or other violation are pending or threatened in writing against any Person by the Purchaser. |
| (t) | The information technology equipment and related systems owned, used or held for use by the Purchaser ("**Systems**") are reasonably sufficient to operate the business of the Purchaser as currently conducted. During the last three (3) years, to the Purchaser's knowledge, there has been no unauthorized access, use, intrusion, or breach of security, or material failure, breakdown, performance reduction or other adverse event affecting any Systems that has caused any substantial disruption to the use of such Systems or the business of the Purchaser or any material loss or harm to the Purchaser or its personnel, property, or the Purchaser Assets. |
| (u) | The Purchaser has complied in all material respects with all Laws and contractual and fiduciary obligations as to protection and security of personal data to which it is subject. The Purchaser has not received any written inquiries from or been subject to any audit or legal proceeding by any Governmental Authority regarding personal data. The Purchaser has complied with its policies and procedures as to collection, use, processing, storage and transfer of personal data. No legal proceeding alleging (i) a material violation of any Person's privacy rights or (ii) unauthorized access, use or disclosure of personal data has been asserted or threatened in writing to the Purchaser. |
| (v) | Section 3.1(v) of the Purchaser Disclosure Letter sets forth a complete and accurate list of the Purchaser Transaction Approvals. Except as set forth in Section 3.1(v) of the Purchaser Disclosure Letter, there are no third party consents or other approvals required to be obtained in order for the Purchaser to implement the Merger and complete the Acquisition. |
| (w) | Except for those matters that, individually or in the aggregate, would not have a Material Adverse Effect with respect to the Purchaser, (i) the Purchaser is in compliance with all applicable Environmental Laws, which compliance includes obtaining, maintaining or complying with all Permits required under Environmental Laws for the operation of its business, (ii) there is no investigation, suit, claim or action relating to or arising under Environmental Laws (including, without limitation, relating to or arising from the Release, threatened Release or exposure to any Hazardous Material) that is pending or, to the knowledge of the Purchaser, threatened in writing against the Purchaser or any real property currently owned, operated or leased by the Purchaser and (iii) the Purchaser has not received any written notice of, or entered into any order, settlement, judgment, injunction or decree involving uncompleted, outstanding or unresolved liabilities or corrective or remedial obligations relating to or arising under Environmental Laws (including, without limitation, relating to or arising from the Release, threatened Release or exposure to any Hazardous Material). |
| (x) | The Purchaser is not a party to or bound by any collective bargaining agreement and is not currently conducting negotiations with any labour union or employee association. |
| (y) | Other than as disclosed in Section 3.1(y) of the Purchaser Disclosure Letter, the Purchaser does not own any real property. Section 3.1(y) of the Purchaser Disclosure Letter lists: (i) each lease, sublease, license or other agreement and any amendments or modifications thereto relating to all Leased Real Property (each a "**Lease**" and collectively, the "**Leases**"), true and complete copies of which have been made available |

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| | |
|:---|:---|
|  | to the Company, (ii) the street address of each parcel of Leased Real Property, (iii) the identity of the lessor, lessee and current occupant (if different from lessee) of each such parcel of Leased Real Property, and (iv) the current use of each such parcel of Leased Real Property. The Purchaser and each Subsidiary, as applicable, has a valid and enforceable leasehold interest under each Lease relating to Leased Real Property used by it. Each Lease is in full force and effect and is valid, binding and enforceable in accordance with its terms against the Purchaser or Subsidiary and each other party thereto. Neither the Purchaser nor any Subsidiary is in default nor has it received a notice of default or termination that remains outstanding under any Lease, and to the Purchaser's knowledge, no uncured default or breach on the part of the landlord exists under any Lease, and no event has occurred or circumstance exists which, with the delivery of notice, passage of time or both, would constitute such a breach or default or permit the termination, modification or acceleration of rent under any such Lease. The Leased Real Property comprise all of the real property used or intended to be used in, or otherwise related to, the business of the Purchaser or any of its Subsidiaries. |
| (z) | Other than as disclosed in Section 3.1(z) of the Purchaser Disclosure Letter, no order, ruling or determination having the effect of suspending the sale or ceasing the trading in any securities of the Purchaser has been issued by any Governmental Authority and is continuing in effect and no proceedings for that purpose have been instituted or, to the knowledge of the Purchaser, are pending, contemplated or threatened by any Governmental Authority. |
| (aa) | The Purchaser is in material compliance with all Laws respecting employment and employment practices, terms and conditions of employment, pay equity and wages and has not and is not engaged in any unfair labour practice and there has never been any material labour disruption. There is no action with respect to any employment-related matters, including payment of wages, salary or overtime pay, that has been asserted or is now pending or, to Purchaser's knowledge, threatened by or before any Governmental Authority with respect to any Persons currently or formerly employed (or engaged as an independent contractor) by, or who are or were applicants for employment with, Purchaser or any Subsidiary. |
| (bb) | Other than as set forth in Section 3.1(bb) of the Purchaser Disclosure Letter, neither Purchaser nor Subco are party to any Contract, written or oral, involving an amount in excess of $50,000 other than this Agreement and the Loan Agreement. |
| (cc) | Neither Purchaser nor, to the knowledge of Purchaser, any other party thereto is in default or breach of any Contract of Purchaser and, to the knowledge of Purchaser, there exists no condition, event or act which, with the giving of notice or lapse of time or both would constitute a default or breach under any Contract of Purchaser which would give rise to a right of termination on the part of any other party to such Contract or would otherwise have a Material Adverse Effect on the Purchaser. Purchaser has not received written, or to the knowledge of Purchaser, other notice of, any alleged breach of or alleged default under or dispute in connection with any Contract or of any intention of any party to any Contract of Purchaser to cancel, terminate or otherwise materially modify or not renew its relationship with the Purchaser. |
| (dd) | Purchaser is not a party to any agreement, nor, to the knowledge of Purchaser, is there any shareholders agreement, pooling agreement, voting trust, or other contract which in any manner affects the ownership or voting control of any of the securities of Purchaser or Subco. |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) Other
 than as set forth in Section 3.1(ee) of the Purchaser Disclosure Letter, the Purchaser does not have any agreements, plans or practices
 relating to the payment of any management, consulting, service or other fees or any bonuses, pensions, share of profits or retirement
 allowance, insurance, health or other Employee benefits or any plan for retirement, stock purchase, profit sharing, stock option,
 deferred compensation, severance or termination pay, insurance, medical, hospital, dental, vision care, drug, sick leave, disability,
 salary continuation, legal benefits, unemployment benefits, vacation, incentive or otherwise contributed to, or required to be contributed
 to, by the Purchaser for the benefit of any current or former director, officer, Employee or consultant of the Purchaser (each, an
 "**Employee Plan** "). The Purchaser has made available to the Company the opportunity to review true and complete
 copies of documents, contracts and arrangements relating to the Employee Plans. The Employee Plans have been established, operated
 in the Ordinary Course and administered in all material respects in accordance with their terms and applicable Laws.

(ff) Except
 as set out in the Purchaser Disclosure Letter, none of the directors or officers of the Purchaser or any of its associates or Affiliates
 has any interest, direct or indirect, in any transaction with the Purchaser that materially affects the Purchaser and its Subsidiaries,
 taken as a whole.

(gg) Copies
 of the minute books and records of the Purchaser and Subco made available to the Company in connection with the due diligence investigation
 of the Purchaser and Subco for the period from July 31, 2018 to the date hereof are all of the minute books of the Purchaser and
 Subco and contain copies of all material organizational documents, bylaws, shareholder minutes, directors minutes and committee minutes
 of the Purchaser and Subco.

(hh) There
 is no Person acting or purporting to act at the request or on behalf of Purchaser that is entitled to any brokerage or finder's
 fee or other compensation in connection with the transactions contemplated by this Agreement.

(ii) The
 Payment Shares will, on Closing, be issued, and the Earn-Out Shares will, if issued in accordance with the terms and conditions of
 this Agreement, at the time of issuance be issued, in compliance with all applicable Laws (including Applicable Securities Laws).
 The Payment Shares, Earn-Out Shares and Resulting Issuer Common Shares issuable upon exercise of the Resulting Issuer Options and
 Company Warrants have been reserved for issuance by all necessary action on the part of Purchaser and, when issued by Purchaser and
 delivered by Purchaser, will be validly issued and will be outstanding as fully paid and non-assessable.

(jj) Purchaser
 is a "reporting issuer" and not on the list of reporting issuers in default in the provinces of British Columbia, Alberta
 and Ontario and, other than in respect of the Purchaser's failure to file the audited financial statements comprising the Purchaser
 Financial Statements, is in compliance, in all material respects, with the Applicable Securities Laws of such provinces and the applicable
 rules and regulations of the CSE. The issued and outstanding Purchaser Common Shares are listed and posted for trading on the CSE,
 and the Payment Shares, Earn-Out Shares, and Resulting Issuer Common Shares issuable upon exercise of the Resulting Issuer Options
 and Company Warrants when, and if, issued, will be listed and posted for trading on the CSE. Other than with respect to the Purchaser
 Financial Statements, no delisting, suspension of trading in, or cease trading order with respect to, the Purchaser Common Shares
 or any other securities of Purchaser is in effect, pending or, to the knowledge of Purchaser, threatened, and no legal proceedings
 have been instituted that might result in any such action being taken or order being made, and no written notification or other communication
 in writing from a securities regulator threatening to take any such action or make any such order has been received by Purchaser.

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| | |
|:---|:---|
| (kk) | Other than the audited financial statements comprising the Purchaser Financial Statements, Purchaser has prepared and filed with the securities regulators in each of the jurisdictions where it is a "reporting issuer", and under its profile on System for Electronic Document Analysis and Retrieval, all material documents required to be filed by it under Applicable Securities Laws and the rules of the CSE. All documents and information included in the public record were, as of their respective dates, in compliance in all material respects with applicable Laws and did not, as of their respective dates, contain a misrepresentation (as such term is defined in the Securities Act (British Columbia) and its equivalent legislation in the United States), untrue statement of material fact or omit to state a material fact required to be stated therein or required in order to make the statements therein, in light of the circumstances under which they were made. As of the date of this Agreement (i) Purchaser has not filed any confidential material change report or similar document that is not generally available to the public with any securities regulator or any stock exchange, and (ii) there is no adverse "material change" (as such term is defined the *Securities Act* (British Columbia) and its equivalent legislation in the United States) or material fact in respect of Purchaser or the Purchaser Common Shares that has not been generally disclosed (within the meaning of Applicable Securities Laws). |
| (ll) | The Purchaser has conducted all transactions, negotiations, discussions and dealings in full compliance with anti-bribery and anti-corruption Laws and regulations applicable in any jurisdiction in which they are located or conducting business. The Purchaser has not made any offer, payment, promise to pay or authorization of payment of money or anything of value to any government official, or any other person while having reasonable grounds to believe that all or a portion of such money or thing of value will be offered, given or promised, directly or indirectly, to a government official, for the purpose of (i) assisting the parties in obtaining, retaining or directing business; (ii) influencing any act or decision of a government official in his or its official capacity; (iii) inducing a government official to do or omit to do any act in violation of his or its lawful duty, or to use his or its influence with a government or instrumentality thereof to affect or influence any act or decision of such government or department, agency, instrumentality or entity thereof; or (iv) securing any improper advantage. |
| (mm) | The operations of the Purchaser are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority (collectively, the "**Applicable Money Laundering Laws**") and no action, suit or proceeding by or before any Governmental Authority involving the Purchaser with respect to Applicable Money Laundering Laws is, to the knowledge of the Purchaser, pending or threatened. |
| (nn) | The Purchaser's Cash balance as of the Closing Date will equal or exceed the Minimum Cash Balance. |
| No representation or warranty by Purchaser in this Agreement and no statement contained in the Purchaser Disclosure Letter or any certificate or other document furnished or to be furnished to the Company pursuant to this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein in any material respect as of the date they were provided, in light of the circumstances in which they are made, not misleading. | No representation or warranty by Purchaser in this Agreement and no statement contained in the Purchaser Disclosure Letter or any certificate or other document furnished or to be furnished to the Company pursuant to this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein in any material respect as of the date they were provided, in light of the circumstances in which they are made, not misleading. |

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**ARTICLE 4**

**REPRESENTATIONS AND WARRANTIES OF THE COMPANY**

**Section 4.1** **Representations and Warranties of the Company.**

The Company represents and warrants to and in favour of Purchaser and Subco as follows, and acknowledges that Purchaser and Subco are relying upon such representations and warranties in connection with the completion of the transactions contemplated herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company is a corporation duly incorporated and validly existing under the laws of the State of Nevada and has all requisite corporate
 power and corporate authority and is duly qualified and holds all Permits necessary or required to carry on its business as now conducted
 in each of the jurisdictions it carries on business and to own, lease or operate its assets and properties and neither the Company
 nor, to the knowledge of the Company, any other Person, has taken any steps or proceedings, voluntary or otherwise, requiring or
 authorizing the Company's dissolution or winding up, and the Company has all requisite corporate power and corporate authority
 to enter into this Agreement and to carry out its obligations hereunder.

(b) Other
 than as set forth in Section 4.1(b) of the Company Disclosure Letter, the Company has no direct or indirect Subsidiaries nor any
 investment in any Person or any agreement, option or commitment to acquire any such investment.

(c) The
 Company is conducting its business in compliance in all material respects with all applicable Laws and regulations of each jurisdiction
 in which it carries on business and has not received a notice of non-compliance, and, to the knowledge of the Company, there are
 no facts that would give rise to a notice of material noncompliance with any such Laws and regulations. Each of the Company and its
 Subsidiaries and their respective Affiliates hold the applicable Cannabis Licenses required to conduct their present business. Each
 Cannabis License is in full force and effect in all material respects and has not been revoked, suspended, cancelled, rescinded,
 terminated, modified and has not expired. There are no pending or, to the Company's knowledge, threatened actions by or before
 any Governmental Authority to revoke, suspend, cancel, rescind, terminate and/or materially adversely modify any Cannabis License.
 True and complete copies of all of Cannabis Licenses held by the Company or its Subsidiaries have been made available to the Purchaser
 and are set forth in Section 4.1(c) of the Company Disclosure Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Other
 than as set forth in Section 4.1(d) of the Company Disclosure Letter, no consent, approval, order or authorization of, or registration,
 declaration or filing with, any third party or Governmental Authority is required by or with respect to the Company in connection
 with the execution and delivery of and the performance by the Company of its obligations under this Agreement, the Ancillary Agreements
 and the consummation by the Company of the transactions contemplated hereunder and thereunder.

(e) Since
 January 1, 2021 (i) the Company and its Subsidiaries have operated their respective businesses in the Ordinary Course, and (ii) there
 has not been any Material Adverse Change with respect to the Company.

(f) Each
 of the execution and delivery of this Agreement and the applicable Ancillary Agreements, the performance by the Company of its obligations
 hereunder and thereunder and the consummation of the transactions contemplated in this Agreement and the applicable Ancillary Agreements
 do not and will not conflict with or result in a material breach or violation of any of the terms or provisions of, or constitute
 a material default under (whether after notice or lapse of time or both), (i) the Articles of Incorporation, Bylaws or resolutions
 of the Company which are in effect at the date hereof; or (ii) any material mortgage, note, indenture, contract, agreement, joint
 venture, partnership, instrument, lease or other document to which the Company is a party or by which it is bound.

(g) This
 Agreement has been duly authorized and executed by the Company and constitutes a valid and binding obligation of the Company enforceable
 against the Company in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
 moratorium and other Laws relating to or affecting the rights of creditors generally and except as limited by the application of
 equitable principals when equitable remedies are sought, and by the fact that rights to indemnity, contribution and waiver, and the
 ability to sever unenforceable terms, may be limited by applicable Law.

(h) Other
 than as set forth in Section 4.1(h) of the Company Disclosure Letter, other than this Agreement, the Company is not currently party
 to any binding agreement in respect of: (i) the purchase of any material property or assets or any interest therein or the sale,
 transfer or other disposition of any material property or assets or any interest therein currently owned, directly or indirectly,
 by the Company whether by asset sale, transfer of shares or otherwise in excess of $100,000 in the aggregate; or (ii) the change
 of control of the Company (whether by sale or transfer of shares or sale of all or substantially all of the property or assets of
 the Company or otherwise).

(i) Other
 than as set forth in Section 4.1(i) of the Company Disclosure Letter, the Company Financial Statements are based on the books and
 records of the Company, and fairly present, in all material respects, the financial condition of the Company as of the respective
 dates they were prepared and the results of the operations of the Company for the periods indicated.

(j) Other
 than as set forth in Section 4.1(j) of the Company Disclosure Letter, all Taxes due and payable shown to be due on the Company's
 tax returns or required to be collected or withheld and remitted, by the Company have been paid, collected or withheld and remitted
 as applicable. Other than as set forth in Section 4.1(j) of the Company

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| | |
|:---|:---|
|  | Disclosure Letter, all tax returns, declarations, remittances and filings required to be filed by the Company have been filed with all appropriate Governmental Authorities and all such returns, declarations, remittances and filings are complete and accurate and no material fact or facts have been omitted therefrom which would make any of them misleading. Other than as set forth in Section 4.1(j) of the Company Disclosure Letter, to the knowledge of the Company, no examination of any tax return of the Company is currently in progress by any Governmental Authorities and there are no issues or disputes outstanding with any Governmental Authority respecting any Taxes that have been paid, or may be payable, by the Company. There are no agreements, waivers or other arrangements with any taxation authority providing for an extension of time for any assessment or reassessment of Taxes with respect to the Company. |
| (k) | The Company maintains a system of internal accounting controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management's general or specific authorization; and (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with IFRS and to maintain accountability for assets. |
| (l) | The Company Auditors who will audit the audited consolidated financial statements of the Company for the financial year ended December 31, 2021 will be independent public accountants for the purposes of IFRS. |
| (m) | The authorized share capital of the Company is 250,000,000 Company Common Shares. The number of Company Common Shares issued and outstanding as of the date hereof is set out in Section 4.1(m) of the Company Disclosure Letter, each of which is outstanding as fully paid and non-assessable. Except as set forth in Section 4.1(m) of the Company Disclosure Letter, there are no options, warrants or other rights, shareholder rights plans, agreements or commitments of any character whatsoever requiring the issuance, sale or transfer by the Company of any shares of the Company or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing a right to acquire, any shares of the Company as of the date hereof. The number of Company Common Shares issued and outstanding as of the Effective Time will be set out in the Company Capitalization Spreadsheet, each of which will be outstanding as fully paid and non-assessable. Except as set forth in the Company Capitalization Spreadsheet, there will be no options, warrants or other rights, shareholder rights plans, agreements or commitments of any character whatsoever requiring the issuance, sale or transfer by the Company of any shares of the Company or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing a right to acquire, any shares of the Company as of the Effective Time. |
| (n) | Except as set forth in Section 4.1(n) of the Company Disclosure Letter, the Company is not aware of any legal or governmental actions, suits, judgments, investigations or proceedings to which the Company, or to the knowledge of the Company, the directors or officers of the Company are a party or to which the property and assets of the Company is subject and, to the knowledge of the Company, no such proceedings have been threatened against or are pending with respect to the Company, or with respect to its property and assets, and the Company is not subject to any judgment, order, writ, injunction, decree or award of any Governmental Authority. Neither the Company nor any of its Subsidiaries, nor any of its assets or properties, is subject to any material outstanding judgment, order, writ, injunction or decree applicable to the Company or any of its Subsidiaries on a consolidated basis.<br>|

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The
 Company is not in violation of its organizational documents or, to the Company's knowledge,
 in default, in any material respect, in the performance or observance of any obligation,
 agreement, covenant or condition contained in any material Contract to which it is a party
 or by which it or its property and assets may be bound and all material Contracts to which
 the Company is a party are in good standing in all respects and in full force and effect,
 other than the Company is currently in arrears in remitting rental payments to its landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Other
 than as set forth in Section 4.1(p) of the Company Disclosure Letter, the Company owns or
 has all necessary rights to use (as currently used) all material property and assets owned
 or used that are necessary in the conduct of the business of the Company as now conducted
 free and clear of any actual, pending or, to the knowledge of the Company, threatened claims,
 liens, charges, options, set-offs, free-carried interests, royalties, encumbrances, security
 interests or other interests whatsoever other than such security interests, liens and encumbrances
 granted in the Ordinary Course of business by the Company. Such assets comprise all of the
 assets, properties and rights used in and necessary to the conduct of the business of the
 Company and are adequate and sufficient to conduct the business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Except
 as set forth in Section 4.1(q) of the Company Disclosure Letter, the Company holds all material
 Permits necessary for it to own, lease and license its property and assets and carry on its
 business, as now carried on as of the date of this Agreement, in each jurisdiction where
 such business is carried on, including, but not limited to, Permits from Governmental Authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Section
 4.1(r) of the Company Disclosure Letter sets forth a complete and accurate list of all of
 the following that constitutes material Intellectual Property: (i) registered Intellectual
 Property, (ii) pending applications for registration of Intellectual Property, (iii) all
 computer software (other than commercially available, off-the-shelf software with a replacement
 cost or annual license fee of less than $10,000), and (iv) trade or corporate names and material
 unregistered trademarks and service marks. Except as would not, individually or in the aggregate,
 have a Material Adverse Effect with respect to the Company, (i) to the knowledge of the Company,
 (A) the conduct of the Company's business as currently conducted does not infringe
 or otherwise violate any Person's registered Intellectual Property and (B) there is
 no claim of such infringement or other violation pending or to the knowledge of the Company,
 threatened in writing, against the Company, and (ii) to the knowledge of the Company (A)
 no Person is infringing or otherwise violating any Intellectual Property owned by the Company
 and (B) no claims of such infringement or other violation are pending or threatened in writing
 against any Person by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The
 Systems are reasonably sufficient to operate the business of the Company as currently conducted.
 During the last three (3) years, to the Company's knowledge, there has been no unauthorized
 access, use, intrusion, or breach of security, or material failure, breakdown, performance
 reduction or other adverse event affecting any Systems that has caused any substantial disruption
 to the use of such Systems or the business
 of the Company or any material loss or harm to the Company or its personnel, property, or
 other assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The
 Company has complied in all material respects with all Laws and contractual and fiduciary
 obligations as to protection and security of personal data to which it is subject. The Company
 has not received any written inquiries from or been subject to any audit or legal proceeding
 by any Governmental Authority regarding personal data. The Company has complied with its
 policies and procedures as to collection, use, processing, storage and transfer of personal
 data. No legal proceeding alleging (i) a material violation of any Person's privacy
 rights or (ii) unauthorized access, use or disclosure of personal data has been asserted
 or threatened in writing to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Except
 for the Requisite Stockholder Vote required in connection with the Merger or as otherwise
 set forth in Section 4.1(u) in the Company Disclosure Letter, there are no third party consents
 or other approvals required to be obtained in order for the Company to complete the Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except
 for those matters that, individually or in the aggregate, would not have a Material Adverse
 Effect with respect to the Company, (i) the Company is in compliance with all applicable
 Environmental Laws, which compliance includes obtaining, maintaining or complying with all
 Permits required under Environmental Laws for the operation of its business, (ii) there is
 no investigation, suit, claim or action relating to or arising under Environmental Laws (including,
 without limitation, relating to or arising from the Release, threatened Release or exposure
 to any Hazardous Material) that is pending or, to the knowledge of the Company, threatened
 in writing against the Company or any real property currently owned, operated or leased by
 the Company and (iii) the Company has not received any written notice of, or entered into
 any order, settlement, judgment, injunction or decree involving uncompleted, outstanding
 or unresolved liabilities or corrective or remedial obligations relating to or arising under
 Environmental Laws (including, without limitation, relating to or arising from the Release,
 threatened Release or exposure to any Hazardous Material).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Other
 than as set forth in Section 4.1(w) of the Company Disclosure Letter, the Company is not
 a party to or bound by any collective bargaining agreement and is not currently conducting
 negotiations with any labour union or employee association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The
 Company does not own any real property. Section 4.1(x) of the Company Disclosure Letter lists:
 (i) each Lease relating to all Leased Real Property, true and complete copies of which have
 been made available to the Purchaser, (ii) the street address of each parcel of Leased Real
 Property, (iii) the identity of the lessor, lessee and current occupant (if different from
 lessee) of each such parcel of Leased Real Property, and (iv) the current use of each such
 parcel of Leased Real Property. The Company and each Subsidiary, as applicable, has a valid
 and enforceable leasehold interest under each Lease relating to Leased Real Property used
 by it. Each Lease is in full force and effect and is valid, binding and enforceable in accordance
 with its terms against the Company or Subsidiary and each other party thereto. Neither the
 Company nor any Subsidiary is in default nor has it received a notice of default or termination
 that remains outstanding under any Lease, and to the Company's knowledge, no uncured
 default or breach on the part of the landlord exists under any Lease, and no event has occurred
 or circumstance exists which, with the delivery of notice, passage of time or both, would
 constitute such a breach or default or permit the termination, modification or acceleration
 of rent under any such Lease. The Leased Real Property comprise all of the real property
 used or intended to be used in, or otherwise related to, the business of the Company or any
 of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) No
 order, ruling or determination having the effect of suspending the sale or ceasing the trading
 in any securities of the Company has been issued by any Governmental Authority and is continuing
 in effect and no proceedings for that purpose have been instituted or, to the knowledge of
 the Company, are pending, contemplated or threatened by any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Except
 for employment contracts entered into in the Ordinary Course of business and the agreements
 set forth in Section 4.1(z) in the Company Disclosure Letter, there are no agreements with
 holders of Company Common Shares to which the Company is a party or any pooling agreements,
 voting trusts or other similar agreements with respect to the ownership or voting of any
 of the securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The
 Company is in material compliance with all Laws respecting employment and employment practices,
 terms and conditions of employment, pay equity and wages and has not and is not engaged in
 any unfair labour practice and there has never been any material labour disruption. There
 is no action with respect to any employment-related matters, including payment of wages,
 salary or overtime pay, that has been asserted or is now pending or, to the Company's
 knowledge, threatened by or before any Governmental Authority with respect to any Persons
 currently or formerly employed (or engaged as an independent contractor) by, or who are or
 were applicants for employment with, the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Other
 than Employee Plans established or entered into in the Ordinary Course of business by the
 Company, the Company does not have any Employee Plans. The Company has made available to
 Purchaser the opportunity to review true and complete copies of documents, contracts and
 arrangements relating to the Employee Plans. The Employee Plans have been established, operated
 in the Ordinary Course and administered in all material respects in accordance with their
 terms and applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) Except
 as set forth in Section 4.1(cc) of the Company Disclosure Letter, neither the Company nor
 its Subsidiaries are party to any Contract, written or oral, involving an amount in excess
 of $50,000, other than this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) Neither
 the Company nor, to the knowledge of the Company, any party thereto is in default or breach
 of Contract of the Company and, to the knowledge of the Company, there exists no condition,
 event or act which, with the giving of notice or lapse of time or both would constitute a
 default or breach under any Contract of the Company which would give rise to a right of termination
 on the part of any other party to such Contract or would otherwise have a Material Adverse
 Effect on the Company. The Company has not received written, or to the knowledge of the Company,
 other notice of, any alleged breach of or alleged default under or dispute in connection
 with any Contract or of any intention of any party to any Contract of the Company to cancel,
 terminate or otherwise materially modify or not renew its relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) Except
 as set out in Section 4.1(ee) Company Disclosure Letter, none of the directors or officers
 of the Company or any of its associates or Affiliates has any interest, direct or indirect,
 in any transaction with the Company that materially affects the Company and its Subsidiaries,
 taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) Copies
 of the minute books and records of the Company made available to Purchaser in connection
 with the due diligence investigation of the Company for the period from the date of incorporation
 to the date hereof are all of the minute books of the Company and contain copies of all material
 organizational documents, bylaws, shareholder minutes, directors minutes and committee minutes
 of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) Except
 as set out in Section 4.1(gg) of the Company Disclosure Letter, there is no Person acting
 or purporting to act at the request or on behalf of the Company that is entitled to any brokerage
 or finder's fee or other compensation in connection with the transactions contemplated
 hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) The
 Company has conducted all transactions, negotiations, discussions and dealings in full compliance
 with anti-bribery and anti-corruption Laws and regulations applicable in any jurisdiction
 in which they are located or conducting business. The Company has not made any offer, payment,
 promise to pay or authorization of payment of money or anything of value to any government
 official, or any other person while having reasonable grounds to believe that all or a portion
 of such money or thing of value will be offered, given or promised, directly or indirectly,
 to a government official, for the purpose of (i) assisting the parties in obtaining, retaining
 or directing business; (ii) influencing any act or decision of a government official in his
 or its official capacity; (iii) inducing a government official to do or omit to do any act
 in violation of his or its lawful duty, or to use his or its influence with a government
 or instrumentality thereof to affect or influence any act or decision of such government
 or department, agency, instrumentality or entity thereof; or (iv) securing any improper advantage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The
 operations of the Company are and have been conducted at all times in compliance with Applicable
 Money Laundering Laws and no action, suit or proceeding by or before any Governmental Authority
 involving the Company with respect to Applicable Money Laundering Laws is, to the knowledge
 of the Company, pending or threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) The
 Company is not an "investment company" pursuant to the United States Investment
 Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) Except
 for the representations and warranties contained in this Article 4 and the Company Disclosure
 Letter, the Company makes no other express or implied representation or warranty and hereby
 disclaims any such representations or warranties.

**ARTICLE 5**

**STOCKHOLDERS REPRESENTATIVE**

**Section 5.1 Stockholders Representative.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Stockholders Representative is hereby appointed, authorized and empowered to act as the representative
 of the Company Stockholders for all purposes hereunder and for the benefit of the Company
 Stockholders, as the exclusive agent and attorney-in-fact to act on behalf of each of the
 Company Stockholders, in connection with and to facilitate the consummation of the Acquisition,
 which shall include the power, authority and discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 enter into amendments to this Agreement and to execute and deliver any Ancillary Agreements
 (with such modifications or changes therein as to which the Stockholders Representative,
 in its sole discretion, shall have consented) and to agree to such amendments or modifications
 thereto as the Stockholders Representative, in its sole discretion, determines to be desirable,
 in each case, whether before or after the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 execute and deliver such waivers and consents in connection with this Agreement and any Ancillary
 Agreements and the consummation of the Merger as the Stockholders Representative, in its
 sole discretion, may deem necessary or desirable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 enforce and protect the rights and interests of the Company Stockholders (including the Stockholders
 Representative, in his capacity as a Company Stockholder) and to enforce and protect the
 rights and interests of the Stockholders Representative arising out of or under or in any
 manner relating to this Agreement, and each other agreement, document, instrument or certificate
 referred to herein or therein or the transactions provided for herein or therein, including
 the Ancillary Agreements, and to take any and all actions which the Stockholders Representative
 believes are necessary or appropriate under this Agreement for and on behalf of the Company
 Stockholders, including asserting or pursuing any Claim against Purchaser, Subco, Mergeco
 or any of their Affiliates or Representatives, consenting to, compromising or settling any
 such Claims, conducting negotiations with Purchaser, Subco, Mergeco or any of their Affiliates
 and Representatives, regarding such Claims, and, in connection therewith, to: (A) assert
 or institute any Claim; (B) investigate, defend, contest or litigate any Claim initiated
 by Purchaser, Subco, Mergeco or any other Person, or by any federal, state or local Governmental
 Authority against the Stockholders Representative or against all Company Stockholders, and
 receive process on behalf of any or all such Company Stockholders in any such Claim and compromise
 or settle on such terms as the Stockholders Representative shall determine to be appropriate,
 and give receipts, releases and discharges with respect to, any such Claim; (C) file any
 proofs of debt, claims and petitions as the Stockholders Representative may deem advisable
 or necessary; and (D) file and prosecute appeals from any decision, judgment or award rendered
 in any such Claim, it being understood that the Stockholders Representative shall not (x)
 have any obligation to take any such actions, and shall not have any liability for any failure
 to take any such actions and (y) shall not have the authority to investigate, defend, contest
 or litigate any Claim (or compromise or settlement thereof) made against one or more Company
 Stockholders that is not made against all such Persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to
 refrain from enforcing any right of the Company Stockholders or the Stockholders Representative
 arising out of or under or in any manner relating to this Agreement, or any other agreement,
 instrument or document in connection with the foregoing; provided, however, that no such
 failure to act on the part of the Stockholders Representative, except as otherwise provided
 in this Agreement, shall be deemed a waiver of any such right or interest by the Stockholders
 Representative or by such Company Stockholder unless such waiver is in writing signed by
 the waiving party or by the Stockholders Representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to
 make, execute, acknowledge and deliver all such other agreements, guarantees, orders, receipts,
 endorsements, notices, requests, instructions, certificates, stock powers, letters and other
 writings, and, in general, to do any and all things and to take any and all action that the
 Stockholders Representative, in its sole and absolute discretion, may consider necessary
 or proper or convenient in connection with or to implement the Merger, and all other agreements,
 documents or instruments referred to herein or therein or executed in connection herewith
 and therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to
 engage such counsel, experts and other agents and consultants as it shall deem necessary
 in connection with exercising its powers and performing its function hereunder and (in the
 absence of bad faith on the part of the Stockholders Representative) to conclusively rely
 on the opinions and advice of such Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This
 Article 5 and all of the indemnities, immunities and powers granted to the Stockholders Representative
 hereunder and under this Agreement shall survive the Closing Date or any termination of this
 Agreement in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except
 as provided for herein, Purchaser, Subco and Mergeco shall have the right to rely upon all
 actions taken or omitted to be taken by the Stockholders Representative pursuant to this
 Agreement and any Ancillary Agreement, as applicable, all of which actions or omissions shall
 be legally binding upon the Company Stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 grant of authority provided for herein (i) is coupled with an interest and shall be irrevocable
 and survive the death, incompetency, bankruptcy or liquidation of any Company Stockholder,
 and (ii) shall survive the consummation of the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon
 the written request of any Company Stockholder, the Stockholders Representative shall provide
 such Person with an accounting of all monies or proceeds (including the Payment Shares and
 Earn-Out Shares) received and distributed by the Stockholders Representative, in its capacity
 as the Stockholders Representative, and shall provide such Person with such other reasonable
 information regarding the Stockholders Representative's actions and its other costs
 and expenses, in its capacity as the Stockholders Representative, as such Person may reasonably
 request.

**Section 5.2 Indemnification of Stockholders Representative.**

Except as contemplated pursuant to Section 5.1(e), the Stockholders Representative shall not be entitled to any fee, commission or other compensation for the performance of its services hereunder, but shall be entitled to the payment by the Company Stockholders of all its expenses incurred as the Stockholders Representative. In connection with this Agreement, and any Ancillary Agreement, and in exercising or failing to exercise all or any of the powers conferred upon the Stockholders Representative hereunder (i) the Stockholders Representative shall incur no responsibility whatsoever to any Company Stockholder by reason of any error in judgment or other act or omission performed or omitted hereunder or in connection with any such Ancillary Agreement, excepting only responsibility for any act or failure to act which represents gross negligence or willful misconduct, and (ii) the Stockholders Representative shall be entitled to rely on the advice of counsel, public accountants or other independent experts experienced in the matter at issue, and any error in judgment or other act or omission of the Stockholders Representative pursuant to such advice shall in no event subject the Stockholders Representative to liability to any Company Stockholders. Each of the Company Stockholders shall indemnify, pro rata based upon such Person's Pro Rata Share, the Stockholders Representative against all Losses, damages, liabilities, claims, obligations, costs and expenses, including reasonable attorneys', accountants' and other experts' fees and the amount of any judgment against them, of any nature whatsoever (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claims whatsoever), arising out of or in connection with any Claim or in connection with any appeal thereof, relating to the acts or omissions of the Stockholders Representative hereunder or otherwise in his capacity as the Stockholders Representative. The foregoing indemnification shall not apply in the event of any Claim which finally adjudicates the liability of the Stockholders Representative hereunder for its gross negligence or willful misconduct. In the event of any indemnification hereunder, upon written notice from the Stockholders Representative to the Company Stockholders as to the existence of a deficiency toward the payment of any such indemnification amount, each of the Company Stockholders shall promptly deliver to the Stockholders Representative full payment of his or her Pro Rata Share of the amount of such deficiency, in accordance with such Person's Pro Rata Share.

**ARTICLE 6**

**COVENANTS OF THE COMPANY**

The Company hereby covenants and agrees with Purchaser as follows until the earlier of the Effective Date or the termination of this Agreement in accordance with its terms:

**Section 6.1 Necessary Consents.**

The Company shall use its commercially reasonable efforts to obtain from the Company's directors, stockholders and all federal, state or other governmental or administrative bodies such approvals or consents (other than with respect to any BCC License) as are required to complete the transactions contemplated herein. Following the Closing, the Company and Purchaser shall, as promptly as possible, with respect to any BCC License, (a) make, or cause to be made, all filings and submissions required by an Governmental Authority to transfer ownership of such BCC License from the Company to the Purchaser and (ii) use commercially reasonable efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary in connection thereof.

**Section 6.2 Conduct of Business of the Company.**

The Company will operate its business in the Ordinary Course, and to the extent consistent therewith, the Company shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to preserve substantially intact its and its Subsidiaries' business organization, to keep available the services of its and its Subsidiaries' current officers and employees, to preserve its and its Subsidiaries' present relationships with customers, suppliers, distributors, licensors, licensees, and other Persons having business relationships with it. Without limiting the generality of the foregoing, between the date of this Agreement and the Effective Time, except as otherwise expressly permitted or required by this Agreement, as required by applicable Law or as set forth in Section 6.2 of the Company Disclosure Letter, the Company shall not, nor shall it permit any of its Subsidiaries to, without the prior written consent of the Purchaser (which consent shall not be unreasonably withheld, conditioned, or delayed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) split,
 combine, or reclassify any equity securities of the Company or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) repurchase,
 redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise acquire, any securities
 of the Company or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) declare,
 set aside, or pay any dividend or distribution (whether in cash, stock, property, or otherwise)
 in respect of, or enter into any Contract with respect to the voting of, any shares of its
 capital stock (other than dividends from its direct or indirect wholly-owned Subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) issue,
 sell, pledge, dispose of or encumber any debt, equity or other securities, except the issuance
 of Company Common Shares upon the exercise of any outstanding Company Options, Company Warrants,
 Company Debentures or other convertible securities outstanding on the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) borrow
 money or incur any indebtedness for money borrowed or guarantee any such indebtedness of
 another Person, issue or sell any debt securities or options, warrants, calls, or other rights
 to acquire any debt securities of the Company or any of its Subsidiaries, guarantee any debt
 securities of another Person, enter into any "keep well" or other Contract to
 maintain any financial statement condition of any other Person (other than any wholly-owned
 Subsidiary of it) or enter into any arrangement having the economic effect of any of the
 foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) make
 loans, advances, or other payments, excluding salaries and bonuses at current rates and routine
 advances to Employees of the Company for expenses incurred in the Ordinary Course or as contemplated
 pursuant to or in conjunction with the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) acquire,
 by merger, consolidation, acquisition of stock or assets, or otherwise, any business or Person
 or division thereof or make any loans, advances, or capital contributions to or investments
 in any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) transfer,
 license, sell, lease, or otherwise dispose of (whether by way of merger, consolidation, sale
 of stock or assets, or otherwise) or pledge, encumber, mortgage, or otherwise subject to
 any lien, any assets, including the capital stock or other equity interests in any Subsidiary
 of the Company; *provided,* that the foregoing shall not prohibit the Company and its
 Subsidiaries from transferring, selling, leasing, or disposing of obsolete equipment or assets
 being replaced, in each case in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) adopt
 or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization,
 or other reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter
 into or amend or modify in any material respect, or consent to the termination of (other
 than at its stated expiry date), any Contract that is material to the Company and its Subsidiaries
 or any lease with respect to material real estate or any other Contract or Lease that, if
 in effect as of the date hereof would constitute a material Contract or Lease with respect
 to material real estate hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) institute,
 settle, or compromise any Claim involving the payment of monetary damages by the Company
 or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) declare
 or pay any dividends or distribute any of the Company's properties or assets to shareholders
 or otherwise dispose of any of the Company's properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) alter,
 amend or propose to alter or amend the Company's articles or by-laws in any manner
 which may adversely affect the success of the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) except
 as otherwise permitted or contemplated herein, enter into any transaction or material Contract
 which is not in the Ordinary Course of business or engage in any business enterprise or activity
 materially different from that carried on by the Company as of the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) abandon,
 allow to lapse, sell, assign, transfer, grant any security interest in otherwise encumber
 or dispose of any Intellectual Property, or grant any right or license to any Intellectual
 Property other than pursuant to non-exclusive licenses entered into in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) provide
 any guarantee in respect of the obligations of any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) except
 as may be contemplated pursuant to the Employment Agreement between Micah Anderson and the
 Company, increase any compensation for any director, officer, Employee or consultant of the
 Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) except
 in respect of capital and operating expenditures at the Company's cannabis manufacturing
 facility located in Arvin, California, incur any expense in excess of $150,000 individually
 or make any capital expenditures, other than in the Ordinary Course of business of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) terminate
 or modify in any material respect, or fail to exercise renewal rights with respect to, any
 material insurance policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) adopt
 or implement any stockholder rights plan or similar arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) organize
 any new Subsidiary (other than those that are wholly-owned) or acquire or agree to acquire
 by merging or consolidating with, or by purchasing a substantial portion of the assets of,
 or by any other manner, any business or any corporation, partnership, association or other
 business organization or division thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) use
 funds from its treasury or the net proceeds received by the Company from the exercise of
 the Company Warrants to address or pay any tax liabilities of any Company Stockholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) agree
 or commit to do any of the foregoing.

**Section 6.3 All Other Action.**

The Company shall cooperate fully with Purchaser and will use all reasonable commercial efforts to assist Purchaser in its efforts to implement the Merger, unless such cooperation and efforts would subject the Company to liability or would be in breach of applicable statutory or regulatory requirements.

**Section 6.4 Updated Company Disclosure Letter.**

No later than 5 Business Days prior to Closing, the Company shall deliver an updated Company Disclosure Letter to reflect any updates or changes to the Company Disclosure Letter between the date hereof and the Closing Date. Any new disclosures set forth in such updated Company Disclosure Letter shall not constitute an exception to the representations and warranties set forth in Article 4, shall not limit the rights of Purchaser under this Agreement for any breach by the Company of such representations and warranties and shall not have the effect of satisfying any of the conditions to obligations of Purchaser; *provided,* that (a) if (i) such disclosure by the Company is made in order to set forth any matter, fact or item first occurring or arising after the date hereof and (ii) Purchaser has the right to, but does not elect to, terminate this Agreement in accordance with Section 10.1, then from and after the Closing, the Purchaser shall be deemed to have irrevocably waived its right to indemnification under Article 11 with respect to such matter; or (b) if such disclosure is made in order to set forth any matter, fact or item first occurring or arising on or prior to the date hereof, then from and after the Closing, Purchaser shall have the right to indemnification pursuant to Article 11 with respect to such matter, and the applicable representation and warranty (and related schedule in the Company Disclosure Letter) shall be read for purposes of Article 11 as if such disclosure had not been made by the Company hereunder.

**Section 6.5 Company Capitalization Spreadsheet.**

Three (3) Business Days prior to Closing, the Company shall deliver the Company Capitalization Spreadsheet to the Purchaser.

**Section 6.6 Company Information Statement.**

The Company shall promptly, but in no event later than ten (10) Business Days after the date hereof arrange to provide to each Company Stockholder an information statement (as amended or supplemented, the "**Information Statement**"), for Company Stockholders to adopt this Agreement and approve the Merger. The Information Statement shall include information regarding (i) the Company and the Purchaser (the latter of which shall be furnished by the Purchaser no later than five (5) Business Days after the date hereof), (ii) the terms of the Merger and this Agreement, (ii) the notice of appraisal rights required pursuant to the NRS to Company Stockholders who may be entitled to elect appraisal rights under such Laws, (iv) the notice required by Section 92A.410 of the NRS, and (v) the written consent of the Company Stockholder and Accredited Investor Certification to be executed by the Company Stockholders who have not yet executed the Accredited Investor Certifications and written consent of the Company Stockholder.

**Section 6.7 Audited Company Financial Statements**

On or before 120 days following the Closing Date, the Company shall provide to the Purchaser audited financial statements of the Company for the periods ended December 31, 2021 and 2020, prepared in accordance with IFRS and, if any, unaudited interim financial statements of the Company most recently ended prior to the Closing Date prepared in accordance with IFRS.

**Section 6.8 Notices of Certain Events**

Subject to applicable Law, the Company shall notify the Purchaser and Subco, promptly of: (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement; and (c) any event, change, or effect between the date of this Agreement and the Effective Time which individually or in the aggregate causes or is reasonably likely to cause or constitute: (i) a material breach of any of its representations, warranties, or covenants contained herein, or (ii) the failure of any of the conditions set forth in Section 8.1 of this Agreement to be satisfied; provided that, the delivery of any notice pursuant to this Section 6.7 shall not cure any breach of, or noncompliance with, any other provision of this Agreement or limit the remedies available to the party receiving such notice.

**ARTICLE 7 COVENANTS OF PURCHASER**

Purchaser hereby covenants and agrees with the Company as follows until the earlier of the Effective Date or the termination of this Agreement in accordance with its terms, or as otherwise set forth in the applicable covenant:

**Section 7.1 Necessary Consents.**

Purchaser shall use its reasonable efforts to obtain from Purchaser's directors, shareholders, if applicable, and all federal, provincial, municipal or other governmental or administrative bodies such approvals or consents as are required to complete the transactions contemplated herein. Following the Closing, the Company and Purchaser shall, as promptly as possible, with respect to any BCC License, (a) make, or cause to be made, all filings and submissions required by an Governmental Authority to transfer ownership of such BCC License from the Company to the Purchaser and (ii) use commercially reasonable efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary in connection thereof.

**Section 7.2 Non-Solicitation.**

Purchaser hereby covenants and agrees until the Termination Date not to, directly or indirectly, solicit, initiate, knowingly encourage, cooperate with or facilitate (including by way of furnishing any non-public information or entering into any form of agreement, arrangement or understanding) the submission, initiation or continuation of any oral or written inquiries or proposals or expressions of interest regarding, constituting or that may reasonably be expected to lead to any activity, arrangement or transaction or propose any activities or solicitations in opposition to or in competition with the Acquisition, and without limiting the generality of the foregoing, not to induce or attempt to induce any other person to initiate any shareholder proposal or "takeover bid," exempt or otherwise, within the meaning of the *Securities Act* (British Columbia), for securities of Purchaser, nor to undertake any transaction or negotiate any transaction which would be or potentially could be in conflict with the Acquisition, including, without limitation, allowing access to any third party (other than its representatives) to conduct due diligence, nor to permit any of its officers or directors to do so, except as required by statutory obligations or in respect of which Purchaser board of directors determines, in its good faith judgment, after receiving advice from its legal advisors, that failure to recommend such alternative transaction to Purchaser shareholders would be a breach of its fiduciary duties under applicable law. In the event Purchaser or any of its Affiliates, including any of their officers or directors, receives any form of offer or inquiry in respect of any of the foregoing, Purchaser shall forthwith (in any event within one (1) Business Day following receipt) notify the Company of such offer or inquiry and provide the Company with such details as it may request.

**Section 7.3 Conduct of Business of the Purchaser**

Purchaser will operate its business in the Ordinary Course, and to the extent consistent therewith, the Purchaser shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to preserve substantially intact its and its Subsidiaries' business organization, to keep available the services of its and its Subsidiaries' current officers and employees, to preserve its and its Subsidiaries' present relationships with customers, suppliers, distributors, licensors, licensees, and other Persons having business relationships with it. Without limiting the generality of the foregoing, between the date of this Agreement and the Effective Time, except as otherwise expressly permitted or required by this Agreement, or as required by applicable Law, the Purchaser shall not, nor shall it permit any of its Subsidiaries to, without the prior written consent of the Company (which consent shall not be unreasonably withheld, conditioned, or delayed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) split,
 combine, or reclassify any equity securities of the Purchaser or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) repurchase,
 redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise acquire, any securities
 of the Purchaser or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) declare,
 set aside, or pay any dividend or distribution (whether in cash, stock, property, or otherwise)
 in respect of, or enter into any Contract with respect to the voting of, any shares of its
 capital stock (other than dividends from its direct or indirect wholly-owned Subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) issue,
 sell, pledge, dispose of or encumber any debt, equity or other securities, except in connection
 with or the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) borrow
 money or incur any indebtedness for money borrowed or guarantee any such indebtedness of
 another Person, issue or sell any debt securities or options, warrants, calls, or other rights
 to acquire any debt securities of the Purchaser or any of its Subsidiaries, guarantee any
 debt securities of another Person, enter into any "keep well" or other Contract
 to maintain any financial statement condition of any other Person (other than any wholly-owned
 Subsidiary of it) or enter into any arrangement having the economic effect of any of the
 foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) make
 any loans, advances or other payments other than payment of professional fees or expenses
 in connection with or ancillary to the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) acquire,
 by merger, consolidation, acquisition of stock or assets, or otherwise, any business or Person
 or division thereof or make any loans, advances, or capital contributions to or investments
 in any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) transfer,
 license, sell, lease, or otherwise dispose of (whether by way of merger, consolidation, sale
 of stock or assets, or otherwise) or pledge, encumber, mortgage, or otherwise subject to
 any lien, any assets, including the capital stock or other equity interests in any Subsidiary
 of the Purchaser; *provided, that* the foregoing shall not prohibit the Purchaser and
 its Subsidiaries from transferring, selling, leasing, or disposing of obsolete equipment
 or assets being replaced, in each case in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) adopt
 or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization,
 or other reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter
 into or amend or modify in any material respect, or consent to the termination of (other
 than at its stated expiry date), any Contract that is material to the Purchaser and its Subsidiaries
 or any lease with respect to material real estate or any other Contract or Lease that, if
 in effect as of the date hereof would constitute a material Contract or Lease with respect
 to material real estate hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) institute,
 settle, or compromise any Claim involving the payment of monetary damages by the Purchaser
 or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) declare
 or pay any dividends or distribute any of Purchaser's properties or assets to shareholders
 or otherwise of any of the Purchaser's properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) alter,
 amend or propose to alter or amend Purchaser's notice of articles or articles in any
 manner which may adversely affect the success of the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) except
 as otherwise permitted or contemplated herein, enter into any transaction or material Contract
 which is not in the Ordinary Course of business or engage in any business enterprise or activity
 materially different from that carried on by Purchaser as of the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) abandon,
 allow to lapse, sell, assign, transfer, grant any security interest in otherwise encumber
 or dispose of any Intellectual Property, or grant any right or license to any Intellectual
 Property other than pursuant to non-exclusive licenses entered into in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) provide
 any guarantee in respect of the obligations of any person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) increase
 any compensation for any director, officer, Employee or consultant of Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) incur
 any expense in excess of $100,000 individually or in the aggregate or make any capital expenditures,
 other than in the Ordinary Course of business of the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) terminate
 or modify in any material respect, or fail to exercise renewal rights with respect to, any
 material insurance policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) adopt
 or implement any stockholder rights plan or similar arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) organize
 any new Subsidiary (other than those that are wholly-owned) or acquire or agree to acquire
 by merging or consolidating with, or by purchasing a substantial portion of the assets of,
 or by any other manner, any business or any corporation, partnership, association or other
 business organization or division thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) use
 funds from its treasury or the net proceeds received by the Purchaser from the exercise of
 any outstanding convertible securities of the Purchaser to address or pay any tax liabilities
 of any shareholder of the Purchaser; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) agree
 or commit to do any of the foregoing.

**Section 7.4 Reasonable Best Efforts.**

Purchaser and Subco shall cooperate fully with the Company and will use all reasonable best efforts to assist the Company in its efforts to consummate and make effective, and to satisfy all conditions to, as promptly as reasonably practicable (and in any event no later than the date that is 60 days following the date hereof), the Merger and the transactions contemplated by this Agreement, including*:* (i) the obtaining of all necessary Permits, waivers, and actions or nonactions from a Governmental Authority and the making of all necessary registrations, filings, and notifications (including filings with a Governmental Authority) and the taking of all steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any a Governmental Authority; (ii) the obtaining of all necessary consents or waivers from third parties; and (iii) the execution and delivery of any additional instruments necessary to consummate the Merger and to fully carry out the purposes of this Agreement, including without limitation the Supplemental Indenture. Purchaser and Subco shall, subject to applicable Law, promptly: (A) cooperate and coordinate with the Company in the taking of the actions contemplated by clauses (i), (ii), and (iii) immediately above; and (B) supply the Company with any information that may be reasonably required in order to effectuate the taking of such actions. Purchaser and Subco shall promptly inform the Company of any communication from any Governmental Authority regarding any of the transactions contemplated by this Agreement.

**Section 7.5 Notices of Certain Events**

Subject to applicable Law, Purchaser and Subco shall notify the Company, promptly of: (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement; and (c) any event, change, or effect between the date of this Agreement and the Effective Time which individually or in the aggregate causes or is reasonably likely to cause or constitute: (i) a material breach of any of its representations, warranties, or covenants contained herein, or (ii) the failure of any of the conditions set forth in Section 8.2 of this Agreement to be satisfied; provided that, the delivery of any notice pursuant to this Section 7.5 shall not cure any breach of, or noncompliance with, any other provision of this Agreement or limit the remedies available to the party receiving such notice.

**Section 7.6 Subco.**

Subco shall be validly subsisting and in good standing under the NRS immediately prior to the Merger. Purchaser covenants and agrees that Subco shall not carry on any business, shall not enter into any contracts, agreements, commitments, indentures or other instruments prior to the Closing Date other than as required to effect the Merger and shall be debt free as of the time of the Merger.

**Section 7.7 Stockholder Approval.**

Subject to and conditioned upon a determination at any time that approval of this Agreement, the Merger and the transaction contemplated hereby by the Purchaser's stockholders and/or the CSE is required at any time under applicable Law (including Applicable Securities Laws) or by the rules and regulations of the CSE, the Purchaser shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promptly
 notify the Company of such fact;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as
 promptly as practicable after the date thereof, prepare with the assistance, cooperation
 and commercially reasonable efforts of the Company, and file with all applicable Governmental
 Authorities (including the CSE, as applicable) all necessary statements, documents, materials
 for the purpose of (i) soliciting proxies from Purchaser's stockholders for the approval
 of this Agreement and the Merger and (ii) approval of all Governmental Authorities (including
 the CSE) of the Agreement, the Merger and the issuance of all Resulting Issuer Common Shares
 (collectively, "**Purchaser Transaction Approvals** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) take
 any and all reasonable and necessary actions required to satisfy the requirements of applicable
 Law, Applicable Securities Law and the regulations of the CSE in connection with the Purchaser
 Transaction Approvals, if any.

**Section 7.8 Warrant Exercise Price.**

The Purchaser covenants and agrees that it will not, for a period of 6 months following the Closing Date, reduce the exercise price of any outstanding warrants to purchase Purchaser Common Shares.

**Section 7.9 Further Assurances.**

Purchaser will take all action necessary to cause Subco to perform its obligations under this Agreement and to consummate the Merger on the terms and conditions set forth in this Agreement. At and after the Effective Time, the officers and directors of Mergeco shall execute and deliver, in the name and on behalf of Mergeco, any deeds, bills of sale, assignments, or assurances and to take and do, in the name and on behalf of Mergeco, any other actions and things to vest, perfect, or confirm of record or otherwise in Mergeco any and all right, title, and interest in, to and under any of the rights, properties, or assets of the Company acquired or to be acquired by Mergeco as a result of, or in connection with, the Merger.

**Section 7.10 Updated Purchaser Disclosure Letter.**

No later than 5 Business Days prior to Closing, the Purchaser shall deliver an updated Purchaser Disclosure Letter to reflect any updates or changes to the Purchaser Disclosure Letter between the date hereof and the Closing Date. Any new disclosures set forth in such updated Purchaser Disclosure Letter shall not constitute an exception to the representations and warranties set forth in Article 3, shall not limit the rights of the Company under this Agreement for any breach by the Purchaser of such representations and warranties and shall not have the effect of satisfying any of the conditions to obligations of Company; *provided,* that (a) if (i) such disclosure by the Purchaser is made in order to set forth any matter, fact or item first occurring or arising after the date hereof and (ii) the Company has the right to, but does not elect to, terminate this Agreement in accordance with Section 10.1, then from and after the Closing, the Company shall be deemed to have irrevocably waived its right to indemnification under Article 11 with respect to such matter; or (b) if such disclosure is made in order to set forth any matter, fact or item first occurring or arising on or prior to the date hereof, then from and after the Closing, Company shall have the right to indemnification pursuant to Article 11 with respect to such matter, and the applicable representation and warranty (and related schedule in the Purchaser Disclosure Letter) shall be read for purposes of Article 11 as if such disclosure had not been made by the Purchaser hereunder.

**ARTICLE 8**

**CONDITIONS PRECEDENT**

**Section 8.1 Conditions for the Benefit of Purchaser.**

The transactions contemplated herein are subject to the following conditions to be fulfilled or performed on or prior to the Closing Date, which conditions are for the exclusive benefit of Purchaser and may be waived, in whole or in part, by Purchaser in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Truth of Representations and Warranties.** With respect to the representations and warranties
 of the Company set forth in Article 4 (in each case as qualified by the Company Disclosure
 Letter and as updated pursuant to Section 6.4):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Company Fundamental Representations shall be true and correct in all respects as of the date
 of this Agreement and as of the Closing Date as if made on and as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 representations and warranties made by the Company in this Agreement that are qualified by
 materiality or the expression "Material Adverse Effect" shall be true and correct
 as of the date of this Agreement and as of the Closing Date as if made on and as of the Closing
 Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 other representations and warranties of the Company in this agreement shall be true and correct
 in all material respects as of the date of this Agreement and as of the Closing Date as if
 made on and as of the Closing Date,

in each case except to the extent that such representation and warranty expressly speaks as of an earlier date, in which case such representation and warranty shall be true and correct as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance of Obligations.** The Company shall have performed, fulfilled or complied with, in all
 material respects, all of its obligations, covenants and agreements contained in this Agreement
 and in any Ancillary Agreement to be fulfilled or complied with by the Company at or prior
 to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Approvals and Consents.** All required approvals, consents and authorizations of third parties in
 respect of the transactions contemplated herein, including without limitation all necessary
 shareholder and regulatory approvals (other than with respect to the Company's BCC
 Licenses, which may be obtained after Closing), shall have been obtained on terms acceptable
 to Purchaser acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Deliveries.** The Company shall deliver or cause to be delivered to Purchaser the closing documents
 set forth in Section 9.2 in a form satisfactory to Purchaser acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Proceedings.** All proceedings to be taken in connection with the transactions contemplated in this
 Agreement and any Ancillary Agreement shall be satisfactory in form and substance to Purchaser,
 acting reasonably, and Purchaser shall have received copies of all instruments and other
 evidence as it may reasonably request in order to establish the consummation or closing of
 such transactions and the taking of all necessary proceedings in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **No Legal Action or Prohibition of Law.** There shall be no action or proceeding pending or
 threatened by any Person in any jurisdiction, or any applicable Laws proposed, enacted, promulgated
 or applied, to enjoin, restrict or prohibit any of the transactions contemplated by this
 Agreement or which could reasonably be expected to result in a Material Adverse Effect on
 the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Securities Law Exemptions.** The issuance of all securities of the Resulting Issuer contemplated hereunder
 to be issued in connection with the Merger or otherwise pursuant to this Agreement shall
 be exempt from, or not subject to, the registration requirements of the U.S. Securities Act,
 and all applicable state securities Laws and shall be exempt from the prospectus requirements
 of Applicable Securities Laws in Canada either by virtue of exemptive relief from the securities
 authorities of each of the provinces of Canada or by virtue of exemptions under Applicable
 Securities Laws and shall not be subject to resale restrictions under Applicable Securities
 Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Company Capitalization Spreadsheet**. The Purchaser shall have received the Company Capitalization
 Spreadsheet, in a form satisfactory to the Purchaser, acting reasonably.

**Section 8.2 Conditions for the Benefit of the Company.**

The transactions contemplated herein are subject to the following conditions to be fulfilled or performed on or prior to the Closing Date, which conditions are for the exclusive benefit of the Company and may be waived, in whole or in part, by the Company in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Truth of Representations and Warranties.** With respect to the representations and warranties
 of Purchaser set forth in Article 3 of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Purchaser Fundamental Representations shall be true and correct in all respects as of the
 Closing Date as if made on and as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 representations and warranties made by Purchaser in this Agreement that are qualified by
 materiality or the expression "Material Adverse Effect" shall be true and correct
 as of the Closing Date as if made on and as of the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 other representations and warranties of Purchaser in this Agreement shall be true and correct
 in all material respects as if made on and as of the Closing Date, in each case, except to
 the extent that such representation and warranty expressly speaks as of an earlier date,
 in which case such representation and warranty shall be true and correct as of such earlier
 date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance of Obligations.** Purchaser shall have performed, fulfilled or complied with, in all material
 respects, all of its obligations, covenants and agreements contained in this Agreement and
 in any Ancillary Agreement to be fulfilled or complied with by Purchaser at or prior to the
 Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **No Material Adverse Change**. There shall have been no Material Adverse Change in the business,
 results of operations, assets, liabilities, financial condition or affairs of Purchaser or
 any subsidiaries of the Purchaser, or any change that would, individually or in the aggregate,
 reasonably be expected to constitute a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Approvals and Consents.** All required approvals, consents and authorizations of third parties in
 respect of the transactions contemplated herein, including without limitation all necessary
 shareholder and regulatory approvals (other than with respect to the Company's BCC
 Licenses, which will be obtained after Closing), shall have been obtained on terms acceptable
 to the Company acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Issuance.** The Resulting Issuer Common Shares that are issued as consideration for the Company Common
 Shares at Closing shall be issued as fully paid and non-assessable Resulting Issuer Common
 Shares, free and clear of any and all encumbrances, liens, charges and demands of whatsoever
 nature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Securities Law Exemptions.** The issuance of all securities of the Resulting Issuer contemplated hereunder
 to be issued in connection with the Merger or otherwise pursuant to this Agreement shall
 be exempt from, or not subject to, the registration requirements of the U.S. Securities Act,
 and all applicable state securities Laws and shall be exempt from the prospectus requirements
 of Applicable Securities Laws in Canada either by virtue of exemptive relief from the securities
 authorities of each of the provinces of Canada or by virtue of exemptions under Applicable
 Securities Laws and shall not be subject to resale restrictions under Applicable Securities
 Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Deliveries.** Purchaser and Subco, as applicable shall deliver or cause to be delivered to the Company,
 the closing documents as set forth in Section 9.3 in a form satisfactory to the Company,
 acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Proceedings.** All proceedings to be taken in connection with the transactions contemplated in this
 Agreement and any Ancillary Agreement shall be satisfactory in form and substance to the
 Company, acting reasonably, and the Company shall have received copies of all instruments
 and other evidence as it may reasonably request in order to establish the consummation or
 closing of such transactions and the taking of all necessary proceedings in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **No Legal Action or Prohibition of Law.** There shall be no action or proceeding pending or
 threatened by any Person in any jurisdiction, or any applicable Laws proposed, enacted, promulgated
 or applied, to enjoin, restrict or prohibit any of the transactions contemplated by this
 Agreement or which could reasonably be expected to result in a Material Adverse Effect on
 Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Requisite Stockholder Vote**. This Agreement and the Merger shall have been approved by the Requisite
 Stockholder Vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Purchaser Transaction Approvals**. All Purchaser Transaction Approvals, if any, shall have been obtained
 and the Company shall have received evidence satisfactory to the Company to that effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Cash Balance**. The Purchaser's Cash shall equal or exceed the Minimum Cash Balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Purchaser Financial Statements**. The Purchaser shall have filed (i) audited financial statements
 (including the related notes thereto) of the Company and its consolidated subsidiaries for
 the year ended July 31, 2021, (ii) unaudited income statement of the Company and its consolidated
 subsidiaries for the three months ended October 31, 2021, and (iii) unaudited statement of
 financial position of the Company and its subsidiaries dated October 31, 2021, such financial
 statements having been prepared in conformity with IFRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **No Cease Trade Order**. The Purchaser shall have delivered evidence satisfactory to the Company
 that the Purchaser is not subject to any cease trade or other order of any applicable stock
 exchange or securities regulatory authority which may operate to prevent or restrict trading
 of any securities of the Purchaser, and no such order being pending before any applicable
 stock exchange or securities regulatory authority, whether as a result of any failure of
 the Company to file the financial statements pursuant to Section 8.2(m) or otherwise (including,
 for greater certainty, the management cease trade in effect as of the date of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **Purchaser's Liabilities**. The Purchaser's liabilities as determined in accordance with IFRS,
 excluding lease payable, payroll payable, derivative liability and accounts payable shall
 not exceed $500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Issuance of Purchaser Common Shares to Mark Smith**. Immediately prior to the Closing, the 15,000,000
 Purchaser Common Shares payable to Mark Smith in accordance with the terms of the Smith Employment
 Agreement shall have been issued and deposited in escrow with a third-party escrow agent
 pursuant to the terms of the Escrow Agreement.

**ARTICLE 9**

**CLOSING**

**Section 9.1 Time of Closing.**

The Closing of the transactions contemplated herein shall be held remotely via the electronic exchange of counterpart signature pages on the Closing Date, or in such other manner or at such other time or date as the parties may mutually agree upon in writing.

**Section 9.2 Company Closing Documents.**

On Closing, the Company shall deliver to Purchaser the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 certificate signed on behalf of the Company by a duly authorized officer certifying as to
 (i) the Company's Articles of Incorporation and Bylaws in effect immediately prior
 to Closing, (ii) the resolutions of the board of directors of the Company approving the Merger
 and the transactions contemplated hereby, (ii) receipt of the Requisite Stockholder Approval
 for the Merger and (iv) the incumbency of the officers and directors of the Company executing
 the documents contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 certificate signed on behalf of the Company by a duly authorized officer of the Company to
 the effect of Section 8.1(a) and Section 8.1(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) executed
 counterpart and delivery of the applicable Employment Agreements by Micah Anderson;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 certificate of good standing from the Secretary of State of Nevada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a
 Lock-Up Agreement, duly executed by each Company Key Personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Articles of Merger, duly executed by an authorized officer of the Company.

**Section 9.3 Purchaser's Closing Documents.**

On Closing, Purchaser shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evidence
 that the Payment Shares have been registered in the name of the Depositary in trust for
 the former holders of Company Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 certificate signed on behalf of Purchaser by a duly authorized officer of Purchaser certifying
 as to (i) Purchaser's constating documents in effect immediately prior to Closing,
 (ii) the resolutions of the board of directors of Purchaser approving the Merger and the
 transactions contemplated hereby, (iii) any Purchaser Transaction Approvals and (iv) the
 incumbency of the officers and directors of Purchaser executing the documents contemplated
 by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 certificate signed on behalf of Subco by a duly authorized officer of Subco certifying as
 to (i) Subco's constating documents in effect immediately prior to Closing, (ii) the
 resolutions of the board of directors of Subco approving the Merger and the transactions
 contemplated hereby, and (iii) the incumbency of the officers and directors of Subco executing
 the documents contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 certificate of status for Purchaser from the jurisdiction in which Purchaser is incorporated,
 dated as of a date not earlier than two (2) days prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a
 certificate of status for Subco from the jurisdiction in which Subco is incorporated, dated
 as of a date not earlier than two (2) days prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a
 certificate signed on behalf of the Purchaser by a duly authorized officer of the Purchaser
 to the effect of Section 9.2(a), (b) and (c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) executed
 counterpart signature pages to the Employment Agreement of Micah Anderson;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if
 required pursuant to CSE rules applicable to Purchaser, the consent of the CSE in respect
 of the Acquisition and the issuance of the Payment Shares, Resulting Issuer Options and Resulting
 Issuer Common Shares upon exercise of the Company Warrants as contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Articles of Merger, duly executed by an authorized officer of Subco;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the
 Supplemental Indenture, duly executed by an authorized officer of Purchaser and Odyssey Trust
 Company, as both trustee and collateral agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a
 certificate signed on behalf of the Purchaser by the Purchaser's Chief Financial Officer
 certifying (i) as to Purchaser's Cash balance, (ii) that the Purchaser's liabilities
 as determined in accordance with IFRS excluding lease payable, payroll payable, derivative
 liability and accounts payable do not exceed $500,000 and (iii) attaching evidence satisfactory
 to the Company as to such Cash balance and liabilities thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a
 Lock-Up Agreement, duly executed by each Purchaser Key Personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) such
 other certificates, documents, schedules, agreements, resolutions, consents, approvals, rulings
 or other instruments as may be reasonably requested by the Company or the Shareholder Representative
 in order to effectuate or evidence the transactions contemplated hereby.

**ARTICLE 10**

**TERMINATION**

**Section 10.1 Termination.**

This Agreement may be terminated at any time prior to Closing (the "**Termination Date**") in any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) written
 agreement of the Parties to terminate this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by
 written notice from Purchaser if there has been a breach of any representation, warranty,
 covenant or agreement contained in this Agreement on the part of the Company and (i) the
 Company has not cured such breach within ten (10) Business Days after Purchaser delivers
 written notice of such breach to the Company (*provided*, *however*, that, no cure
 period shall be required for a breach which by its nature cannot be cured) and (ii) if not
 cured within such ten (10) Business Day period and at or prior to the Closing, such breach
 would result in the failure of any of the conditions set forth in Section 8.1 to be satisfied,
 provided further, that Purchaser shall not have the right to terminate this Agreement pursuant
 to this Section 10.1(b) if the Purchaser or Subco is then in material breach of any representation,
 warranty, covenant, or agreement hereunder that would cause any condition set forth in Section
 8.2 not to be satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by
 written notice from Company if (i) there has been a breach of any representation, warranty,
 covenant or agreement contained in this Agreement on the part of the Purchaser or Subco and
 (i) the Purchaser or Subco has not cured such breach within ten (10) Business Days after
 Company delivers written notice of such breach to the Purchaser or Subco (*provided*, *however*, that, no cure period shall be required for a breach which by its nature cannot
 be cured) and (ii) if not cured within such ten (10) Business Day period and at or prior
 to the Closing, such breach would result in the failure of any of the conditions set forth
 in Section 8.2 to be satisfied, provided further, that Company shall not have the right to
 terminate this Agreement pursuant to this Section 10.1(c) if the Company is then in material
 breach of any representation, warranty, covenant, or agreement hereunder that would cause
 any condition set forth in Section 8.1 not to be satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by
 written notice from either Purchaser or the Company if: (i) the Effective Time has not occurred
 on or before 5:00 p.m. (Vancouver time) on March 22, 2022 (*provided*, *however*,
 that the right to terminate this Agreement under this Section 10.1(d) shall not be available
 to any Party whose willful breach has been the cause of, or resulted in, the failure of the
 Effective Time to occur on or before such date), (ii) there shall be a final and non-appealable
 order of any Governmental Authority in effect preventing consummation of the Merger, (iii)
 there shall be any final and non-appealable Law or order enacted, promulgated or issued or
 deemed applicable to the Merger by any Governmental Authority that would make consummation
 of the Merger illegal, or (iv) if the Company Stockholders do not ratify and approve the
 Merger Agreement.

**Section 10.2 Notice and Effect of Termination.**

The Party desiring to terminate this Agreement pursuant to this Article 10 shall deliver written notice of such termination to each other Party specifying with particularity the reason for such termination, and any such termination in accordance with this Section 10.2 shall be effective immediately upon delivery of such written notice to the other party. If this Agreement is terminated pursuant to this Article 10, it will become void and of no further force and effect, with no liability on the part of any party to this Agreement (or any shareholder, director, officer, Employee, agent, or Representative of such party) to any other party hereto; *provided*, *however*, that Purchaser, Subco and the Company shall each remain liable for any breaches of this Agreement prior to its termination; and *provided further* that, the provisions of this Section 10.2, Article 12 and the applicable definitions set forth in Article 1 shall remain in full force and effect and survive any termination of this Agreement.

**ARTICLE 11**

**INDEMNIFICATION**

**Section 11.1 Indemnification by the Company Stockholders.**

Subject to the limits set forth in this Article 11, from and after the Closing, each Company Stockholder shall severally (according to such Company Stockholder's Pro Rata Share), and not jointly and severally, indemnify, defend and hold harmless Purchaser and each of Purchaser's Affiliates, officers, agents, representatives, directors, employees, successors and assigns (Purchaser and such Persons are collectively hereinafter referred to as the "**Purchaser Indemnified Persons**"), from and against any and all Losses that such Purchaser Indemnified Persons may suffer, sustain, incur or become subject to, arising out of, caused by or directly or indirectly relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 inaccuracy of any representation or warranty of the Company set forth in Article 4 of this
 Agreement (as supplemented or qualified by the Company Disclosure Letter) or in any certificate,
 agreement or other document delivered pursuant hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 breach or non-fulfillment of any covenant, undertaking, agreement or other obligation of
 the Company under this Agreement, or any certificate, agreement or other document delivered
 pursuant hereto.

**Section 11.2 Indemnification by Purchaser.**

Subject to the limits set forth in this Article 11, from and after the Closing, Purchaser shall indemnify, defend and hold harmless each of the Company Stockholders and each of their respective Affiliates, officers, controlling Persons, agents, representatives, directors, employees, successors and assigns (such Persons are hereinafter collectively referred to as the "**Company Stockholder Indemnified Persons**"), from and against any and all Losses that such Company Stockholder Indemnified Persons may suffer, sustain, incur or become subject to arising out of, caused by or directly or indirectly relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 inaccuracy of any representation or warranty of Purchaser set forth in Article 3 of this
 Agreement (as supplemented or qualified by the Purchaser Disclosure Letter) or in any certificate,
 agreement or other document delivered pursuant hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 breach or non-fulfillment of any covenant, undertaking, agreement or other obligation of
 Purchaser or Subco under this Agreement or in any certificate, agreement or other document
 delivered pursuant hereto.

**Section 11.3 Survival of Representations and Warranties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 representations and warranties contained in this Agreement (other than the Fundamental Representations),
 or in any certificate or document delivered pursuant hereto, and the right to indemnity pursuant
 to Section 11.1(a) and 11.2(a) in connection therewith, shall survive the Closing and shall
 remain in full force and effect thereafter for a period of twelve (12) months after the Closing
 Date (the **"Expiration Date**") and shall thereupon terminate and be of no
 further force or effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Fundamental Representations (and the right to indemnity pursuant to Section 11.1(a) and 11.2(a)
 in connection therewith) shall survive the Closing and shall remain in full force and effect
 until the date that is thirty (30) days after the expiration of the statute of limitations
 period applicable to the matters covered thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding
 the foregoing, none of the covenants or agreements contained in this Agreement or any agreement
 delivered pursuant hereto shall survive the Closing Date other than those which by their
 terms contemplate performance after the Closing Date, which shall survive the Closing in
 accordance with their terms; *provided, however*, that claims for indemnification pursuant
 to Section 11.1(b) and 11.2(b) in connection with breaches of such covenants or agreements
 to be performed prior to or at the Closing may be made at any time after the Closing until
 the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each
 Indemnified Party shall give written notice to the respective Indemnifying Party of any claim
 for indemnification pursuant to this Article 11; *provided, however*, that failure to
 provide such notice shall not affect such Indemnified Party's right to indemnification
 hereunder unless and only to the extent the Indemnifying Party was actually prejudiced by
 such failure to deliver notice. Any claim for indemnification made in writing by the Indemnified
 Party on or prior to the expiration of the applicable survival period shall survive until
 such claim is finally and fully resolved.

**Section 11.4 Limitation on Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 as set forth in Section 11.4(e), no Purchaser Indemnified Person shall be entitled to any
 recovery pursuant to Section 11.1(a) and Section 11.1(b) unless and until the aggregate amount
 of Losses for which all Purchaser Indemnified Persons are otherwise entitled to indemnification
 pursuant to Section 11.1(a) and Section 11.1(b) exceeds $700,000.00 (the "**Basket** "),
 at which point the Purchaser Indemnified Persons shall be entitled to be indemnified for
 the aggregate amount of all Losses in excess of such Basket.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At
 the time of recovery by a Purchaser Indemnified Person under any indemnification claim under
 Section 11.1(a) and Section 11.1(b), the maximum aggregate recovery by all Purchaser Indemnified
 Persons pursuant to Section 11.1(a) and Section 11.1(b) shall not exceed an amount equal
 to ten percent (10.0%) of the aggregate proceeds paid to the Company Stockholders under this
 Agreement, at the time of such recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except
 as set forth in Section 11.4(e), no Company Stockholder Indemnified Person shall be entitled
 to any recovery pursuant to Section 11.2(a) and Section 11.2(b) unless and until the aggregate
 amount of Losses for which all Company Stockholder Indemnified Persons are otherwise entitled
 to indemnification pursuant to Section 11.2(a) and Section 11.2(b) exceeds the Basket, at
 which point the Company Stockholder Indemnified Persons shall be entitled to be indemnified
 for the aggregate amount of all Losses in excess of such Basket.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding
 any provision herein to the contrary, but subject to limitations on recovery set forth in
 Section 11.6, the restrictions and limitations set forth in Sections 11.4(a), 11.4(b) and
 11.4(c) shall not be applicable to claims based upon Fraud or arising under any breach of
 a Fundamental Representation; *provided, however*, that in no event shall any Company
 Stockholder be liable hereunder for any amount in excess of such Company Stockholder's
 Pro Rata Share of sixty percent (60.0%) of the proceeds paid to such Company Stockholder
 pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 amount of any and all Losses subject to indemnification pursuant to Section 11.4 or this
 Article 11 shall be determined net of any indemnity, contribution, insurance proceeds, tax
 benefit or other similar payment actually received or realized, as applicable, by such Indemnified
 Party with respect to such Losses (less the reasonable costs of recovery incurred by such
 Purchaser Indemnified Person in connection therewith).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Purchaser
 shall, and shall cause each of its Affiliates (including Mergeco) to (i) use commercially
 reasonable efforts to mitigate any of its Losses (except for Losses relating to Taxes) that
 Purchaser Indemnified Persons may recover pursuant to this Article 11 solely to the extent
 required by common law, and (ii) notify all of their respective applicable insurance carriers
 of such possible Losses and diligently seek to recover all possible insurance coverage, payments
 and proceeds relating to such Losses under any and all policies of insurance held by them.
 The Company Stockholders shall, and shall cause each of their respective Affiliates to use
 commercially reasonable efforts to mitigate any of their Losses that the Company Stockholder
 Indemnified Persons may recover pursuant to this Article 11 solely to the extent required
 by common law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding
 any other provision of this Agreement, no Losses shall be recoverable under this Article
 11 or otherwise under this Agreement that constitute punitive or special damages or consequential
 or indirect damages, except in the case owed to a Third Party in connection with a Third
 Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding
 the rights of the Purchaser Indemnified Persons to recover Losses pursuant to Section 11.1,
 Purchaser and Mergeco are not aware of any facts or circumstances that would serve as the
 basis for a claim by any Purchaser Indemnified Person against Company or any Company Stockholder
 based upon a breach of any representation or warranty of the Company contained in this Agreement
 or breach of any of Company's covenants or agreement to be performed by it at or prior
 to Closing. Purchaser and Mergeco, on behalf of themselves and all Purchaser Indemnified
 Persons, shall be deemed to have waived in full any breach of any of Company's representations
 and warranties and any such covenants and agreements of which Purchaser and/or Mergeco has
 such awareness at the Closing.

**Section 11.5 Indemnification Procedure.**

Promptly after the incurrence of any Losses by any Purchaser Indemnified Person or Company Stockholder Indemnified Person (an "**Indemnified Party**"), or receipt by an Indemnified Party of notice of a Third Party Claim for which such Indemnified Party is entitled to indemnification pursuant to Section 11.1 or 11.2 (an "**Indemnifiable Claim**"), such Indemnified Party will give the Stockholders Representative written notice thereof, and if the Indemnified Party is a Company Stockholder Indemnified Party, the Stockholders Representative shall also provide the Purchaser with written notice thereof (an "**Indemnification Notice**"); *provided, however*, that delay or failure to so notify the Stockholders Representative and Purchaser, as applicable, shall only relieve the indemnifying Party (an "**Indemnifying Party**") of its obligations to the extent, if at all, that it is materially prejudiced by reasons of such delay or failure. Such Indemnification Notice by the Indemnified Party shall describe the Indemnifiable Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Stockholders Representative, in the case the Indemnified Party is a Purchaser Indemnified Person, and the Purchaser, in the case the Indemnified Party is a Company Stockholder Indemnified Person, as applicable, shall have a period of thirty (30) days within which to respond to such Indemnification Notice. If the Stockholders Representative or Purchaser, as applicable, accepts responsibility for the entirety of such Indemnifiable Claim within such thirty (30) day period, the Stockholders Representative or Purchaser, whichever is the Indemnifying Party as the case may be, shall be entitled to compromise or defend, at its own expense and by counsel chosen by it and reasonably satisfactory to the Indemnified Party, such matter. If the Stockholders Representative (on behalf of the Company Stockholder Indemnified Persons) or Purchaser (on behalf of the Purchaser Indemnified Persons), as applicable, rejects responsibility for the matter set forth in an Indemnification Notice in whole or in part or does not respond within thirty (30) calendar days after receiving such Indemnification Notice, the Indemnified Party shall be free to pursue, without prejudice to any of its rights hereunder, such remedies as may be available to the Indemnified Party under applicable Law at the Indemnifying Party's expense. The applicable Indemnified Party agrees to cooperate fully with the Stockholders Representative or Purchaser, as the case may be, and its respective counsel in the defense against any such Indemnifiable Claim. In any event, the Indemnified Party shall have the right to participate in a non-controlling manner and at its own expense in the defense of such Indemnifiable Claim. Neither the Stockholders Representative nor Purchaser shall enter into a settlement of such Indemnifiable Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld, conditioned or delayed), and until such consent is obtained the Stockholders Representative or Purchaser, as applicable, shall continue the defense of such Indemnifiable Claim. If a firm offer is made to settle an Indemnifiable Claim (i) that does not involve any admission of liability or wrongdoing by any Indemnified Party or its Affiliates or the creation of financial or other obligation on the part of the Indemnified Party or its Affiliates, (ii) provides for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Indemnifiable Claim, (iii) does not involve injunctive relief binding upon the Indemnified Party or any of its Affiliates, and (iv) such settlement does not encumber any of the material assets of any Indemnified Party or impose any restriction or condition that would apply to or materially affect any Indemnified Party or the conduct of any Indemnified Party's business, and the Indemnifying Party desires to accept and agree to such offer, the Stockholders Representative or Purchaser, as applicable, shall give written notice to that effect to the Indemnified Party. The Indemnified Party shall thereupon have the option of either consenting to such firm offer or assuming the defense of such Indemnifiable Claim. If the Indemnified Party fails to consent to such firm offer within thirty (30) calendar days after its receipt of such notice, and also fails to assume defense of such Indemnifiable Claim, the Stockholders Representative or Purchaser, as applicable, may settle the Indemnifiable Claim upon the terms set forth in such firm offer to settle such Indemnifiable Claim. If the Indemnified Party has assumed the defense pursuant to this Section 11.5, it shall not agree to any settlement without the written consent of the Stockholders Representative (in the case the Indemnified Party is a Purchaser Indemnified Person) or the Purchaser (in the case the Indemnified Party is a Company Stockholder Indemnified Person), in each case which such consent shall not be unreasonably withheld, conditioned or delayed. Notwithstanding any provisions in this Section 11.5 to the contrary, neither the Stockholders Representative (in the case the Indemnified Party is a Purchaser Indemnified Person) nor the Purchaser (in the case the Indemnified Party is a Company Stockholder Indemnified Person), shall be entitled to assume or continue control of the defense of any Indemnifiable Claim of the other Party if (i) such Indemnifiable Claim relates to or arises in connection with any governmental proceeding, action, indictment, allegation or investigation involving the Indemnified Party; (ii) such Indemnifiable Claim relates primarily to the Intellectual Property of such Indemnified Party; (iii) the Indemnified Party has been advised in writing by counsel that a reasonable likelihood exists of a conflict of interest between the Indemnifying Party and the Indemnified Party; or (iv) the Indemnifying Party fails to defend such Indemnifiable Claim in good faith. If the Indemnified Party controls the defense of any Indemnifiable Claim, the Indemnified Party shall be entitled to be reimbursed by the Indemnifying Party for its reasonable defense costs as such costs are incurred.

**Section 11.6 Remedies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 any provisions contained in this Agreement to the contrary, except as provided in Section
 5.2 (Indemnification of Stockholder Representative) and Section 12.10
 (Specific Performance) or in respect of claims based upon Fraud, indemnification pursuant
 to the provisions of this Article 11 shall be the sole and exclusive remedy for any claim
 under this Agreement, the Merger or the other transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 any provisions contained in this Agreement, except in respect of claims based upon Fraud,
 the Purchaser's right to set-off under Section 11.9 shall be the Purchaser Indemnified
 Persons' sole and exclusive remedies for any such claim for indemnification under this
 Article 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any
 and all amounts payable to Purchaser Indemnified Persons as a result of any claim for indemnification
 based upon Fraud by the Company shall be paid directly by the Company Stockholders to Purchaser
 in accordance with their Pro Rata Share, (i) first by set-off of any consideration payable
 to such Company Stockholders pursuant to Section 11.9, and second, if such set-off is insufficient
 to satisfy the entire Losses suffered, (ii) by wire payment of immediately available funds
 for such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 and all amounts payable to Purchaser Indemnified Persons as a result of any claim for indemnification
 for Fraud by such Company Stockholder shall be paid directly by the applicable Company Stockholder
 to Purchaser, by wire payment of immediately available funds. Notwithstanding any provisions
 contained in this Agreement to the contrary, no Company Stockholder shall be liable for the
 Fraud committed by any other Company Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 indemnification provisions set forth in this Article 11 are intended as a bargained- for
 contractual remedy for the Indemnified Parties, contain all of the terms and provisions that
 the Parties intend be applied in any connection with any claim or action for indemnification
 pursuant to this Article 11 and are intended to be enforced without regard to principles
 of breach of contract or other Law that would result in a broader or narrower remedy.

**Section 11.7 Adjustment to Purchase Price.**

To the extent permitted by applicable Law, any indemnification payment made pursuant to this Agreement shall be treated as an adjustment to the Purchase Price for Tax purposes.

**Section 11.8 Right to Bring Actions; No Contribution.**

Notwithstanding any provision in this Article 11 or elsewhere in this Agreement to the contrary, only the Stockholders Representative shall have the right, power and authority to commence any action, suit or proceeding after the Closing, by and on behalf of any or all Company Stockholders, against Purchaser or Mergeco or any other Indemnifying Party in connection with this Agreement and the transactions contemplated hereby and thereby, and in no event shall any Company Stockholder himself, herself or itself have the right to commence any action, suit or proceeding against Purchaser or Mergeco, or any other Indemnifying Party in such connection. By virtue of the adoption of this Agreement and the approval of the Merger by the Company Stockholders, each Company Stockholder (regardless of whether or not such Company Stockholder votes in favor of the adoption of the Agreement and the approval of the Merger, whether at a meeting or by written consent in lieu thereof) shall be deemed to have waived, and shall be deemed to have acknowledged and agreed that such Company Stockholder shall not have and shall not exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against Mergeco in connection with any indemnification obligation or any other liability to which he may become subject under or in connection with this Agreement or the related facts and circumstances underlying any such indemnification obligation or other liability.

**Section 11.9 Set-Off.**

In addition to all other remedies contemplated herein, subject to the limitations on recovery set forth in Article 11 (including, without limitation Section 11.4), Purchaser's exclusive right to payment under this Article 11 (except in the case of Fraud) shall be to set-off, deduct or retain any amount due or payable to Purchaser in respect of any claim (for indemnification) against the Company Stockholders under Section 11.1 by a reduction to any obligation of Purchaser to pay any unpaid Earn-Out Payment, in each case in accordance with each Company Stockholder's Pro Rata Share. In addition, Purchaser may carry-forward and set-off against a future Earn-Out Payment the amount of any Losses not deducted from a previous Earn-Out Payment. In no event, other than in the case of Fraud, shall Purchaser be entitled to claw-back any consideration actually paid to the Company Stockholders.

**ARTICLE 12**

**GENERAL**

**Section 12.1 Confidential Information; Press Release.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Confidential Information**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A
 Receiving Party will not disclose or use, and it will cause its Representatives not to disclose
 or use, any Confidential Information furnished, or to be furnished, by a Disclosing Party
 or its Representatives to the Receiving Party or its Representatives at any time or in any
 manner other than for purposes of evaluating and completing the transactions proposed in
 this Agreement, unless such information is known, or until such information becomes known,
 to the public without wrongful disclosure by any Disclosing Party or its Representatives,
 or such information is required, in legal counsel's written opinion, to be disclosed in legal
 or administrative proceedings; *provided*, *however*, that the Parties may disclose
 such information to their respective attorneys, accountants, consultants and other professionals
 to the extent necessary to obtain their services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If
 this Agreement is terminated, each Receiving Party will promptly return to the Disclosing
 Party or destroy any Confidential Information and any work product produced from such Confidential
 Information in its possession or in the possession of any of its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Press Releases**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No
 disclosure or announcement, public or otherwise, in respect of this Agreement or the transactions
 contemplated herein will be made by Purchaser or the Company or the respective Representatives
 without the prior agreement of the other Party as to timing, content and method, hereto,
 provided that the obligations herein will not prevent any party from making, after consultation
 with the other Party, such disclosure as its counsel advises is required by applicable law
 or the rules and policies of the CSE, and provided further, that the Party making the release,
 statement, announcement, or other disclosure shall use its reasonable best efforts to allow
 the other Party reasonable time to comment on such release, statement, announcement, or other
 disclosure in advance of such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Purchaser
 and the Company shall mutually agree upon and, as promptly as practicable after the execution
 of this Agreement, issue a press release announcing the execution of this Agreement (the
 "**Signing Press Release** "). The form, contents and timing of the Signing
 Press Release shall be subject to the review, comment and approval of the Stockholders Representative
 prior to its issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Purchaser
 and the Stockholders Representative shall mutually agree upon and, as promptly as practicable
 after the Closing, issue a press release announcing the consummation of the transactions
 contemplated by this Agreement (the "**Closing Press Release** "). The form,
 contents and timing of the Closing Press Release shall be subject to the review, comment
 and approval of the Stockholders Representative prior to its issuance.

**Section 12.2 Counterparts.**

This Agreement may be executed in several counterparts (by original or facsimile signature), each of which when so executed shall be deemed to be an original and each of such counterparts, if executed by each of the Parties, shall constitute a valid and enforceable agreement among the Parties.

**Section 12.3 Severability.**

In the event that any provision or part of this Agreement is determined by any court or other judicial or administrative body to be illegal, null, void, invalid or unenforceable, that provision shall be severed to the extent that it is so declared and the other provisions of this Agreement shall continue in full force and effect.

**Section 12.4 Applicable Law; Jurisdiction; Venue.**

This Agreement shall be governed by and construed in accordance with the laws of the State of California without giving effect to the conflict of law principles therein. Subject to Section 12.5, the Parties hereto irrevocably consent to the exclusive jurisdiction and venue of any court within San Diego County, State of California in connection with any matter based upon or arising out of this Agreement, the Merger or any other matters contemplated herein (and any federal court within the Southern District of California). Subject to Section 12.5, each Party agrees not to commence any legal proceedings related hereto except in such court. By execution and delivery of this Agreement, subject to Section 12.5, each Party hereto irrevocably and unconditionally submits to the exclusive jurisdiction of such courts and to the appellate courts therefrom solely for the purposes of disputes arising under this Agreement and not as a general submission to such jurisdiction or with respect to any other dispute, matter or claim whatsoever. The Parties irrevocably consent to the service of process out of any of the aforementioned courts in any such action or proceeding by the delivery of copies thereof by overnight courier to the address for such Party to which notices are deliverable hereunder. Any such service of process shall be effective upon delivery. Nothing herein shall affect the right to serve process in any other manner permitted by applicable Law. The Parties hereto hereby waive any right to stay or dismiss any action or proceeding under or in connection with this Agreement brought before the foregoing courts on the basis of (i) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, or that it or any of its property is immune from the above-described legal process, (ii) that such action or proceeding is brought in an inconvenient forum, that venue for the action or proceeding is improper or that this Agreement may not be enforced in or by such courts, or (iii) any other defense that would hinder or delay the levy, execution or collection of any amount to which any party hereto is entitled pursuant to any final judgment of any court having jurisdiction.

**Section 12.5 Arbitration.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 dispute, claim or controversy arising out of or relating to this Agreement, the Merger and
 any transactions contemplated hereby or the breach, termination, enforcement, interpretation
 or validity thereof, including the determination of the scope or applicability of this agreement
 to arbitrate, shall be determined by binding arbitration (the "**Arbitration** ")
 in San Diego County, California before one arbitrator. Any Arbitration will be held under
 the auspices of the San Diego County office of the Judicial Arbitration & Mediation Services
 ()"**JAMS** "), or any successor. The Arbitration shall be in accordance with
 its Comprehensive Rules & Procedures (or, to the extent available, the Streamlined Ruled
 & Procedures, and in no event any other rules); *provided, however*, that notwithstanding
 any provision to the contrary in the JAMS Rules, a court will resolve any dispute over the
 formation, enforceability, revocability, or validity of this Agreement or any portion thereof.
 The arbitrator (the "**Arbitrator**") shall be selected pursuant to JAMS rules
 or by mutual agreement of the Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Should
 any Party refuse or neglect to appear for, or participate in, the arbitration hearing, the
 Arbitrator shall have the authority to decide the dispute based upon whatever evidence is
 presented.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Within
 thirty (30) days of the close of the Arbitration hearing, any Party will have the right to
 prepare, serve on the other party, and file with the Arbitrator, a brief. The Arbitrator
 shall render an award and written opinion, normally no later than thirty (30) calendar days
 from the date the Arbitration hearing concludes or the post-hearing briefs are received,
 whichever is later. The opinion shall include the factual basis for the award. Except as
 may be permitted or required by law neither a Party nor an Arbitrator may disclose the existence,
 content, or results of any arbitration hereunder without the prior written consent of all
 Parties. Any decision of the Arbitrator hereunder shall be deemed final, binding and non-appealable.

**Section 12.6 Disclosure Schedule**

Nothing in the Company Disclosure Letter or Purchaser Disclosure Letter, as applicable, is intended to broaden the scope of any representation or warranty contained in this Agreement or to create any covenant unless clearly specified to the contrary herein or therein. Inclusion of any item in the Company Disclosure Letter or Purchaser Disclosure Letter, as applicable, (a) does not represent a determination that such item is material nor shall it be deemed to establish a standard of materiality, (b) does not represent a determination that such item did not arise in the Ordinary Course, and (c) shall not constitute, or be deemed to be, an admission to any third party concerning such item. The Company Disclosure Letter and Purchaser Disclosure Letter, as applicable, include descriptions of instruments or brief summaries of certain aspects of the Company and the Purchaser and their respective business and operations. The descriptions and brief summaries are not necessarily complete and are provided therein to identify documents or other materials previously delivered or made available.

**Section 12.7 Successors and Assigns.**

This Agreement shall accrue to the benefit of and be binding upon each of the Parties hereto and their respective heirs, executors, administrators and assigns, provided that this Agreement shall not be assigned by any one of the Parties without the prior written consent of the other Parties.

**Section 12.8 Interpretation.**

The division of this Agreement into Articles, sections and subsections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation hereof. Schedules and other documents attached or referred to in this Agreement are an integral part of this Agreement.

**Section 12.9 Expenses.**

Each of the Parties hereto shall be responsible for its own costs and charges incurred with respect to the transactions contemplated herein including, without limitation, all costs and charges incurred prior to the date hereof and all legal and accounting fees and disbursements relating to preparing this Agreement or any Ancillary Agreement or otherwise relating to the transactions contemplated herein.

**Section 12.10 Specific Enforcement**

The Parties agree that immediate, extensive and irreparable damage would occur for which monetary damages would not be an adequate remedy in the event that any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached. Accordingly, the Parties agree that, if for any reason Purchaser or the Company or any other Person shall have failed to perform its obligations under this Agreement or otherwise breached this Agreement, then the Party seeking to enforce this Agreement against such nonperforming Party under this Agreement shall be entitled to specific performance and the issuance of immediate injunctive and other equitable relief without the necessity of proving the inadequacy of money damages as a remedy, and the Parties further agree to waive any requirement for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief, this being in addition to and not in limitation of any other remedy to which they are entitled at Law or in equity.

**Section 12.11 Further Assurances.**

Each of the Parties hereto will, without further consideration, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered such other documents, instruments of transfer, conveyance, assignment and assurances and secure all necessary consents and authorizations as may be reasonably requested by another Party and take such further action as the other may reasonably require to give effect to any matter provided for herein.

**Section 12.12 Entire Agreement.**

This Agreement and the schedules referred to herein constitute the entire agreement among the Parties hereto and supersede all prior communications, agreements, representations, warranties, statements, promises, information, arrangements and understandings, whether oral or written, express or implied, with respect to the subject matter hereof. None of the Parties hereto shall be bound or charged with any oral or written agreements, representations, warranties, statements, promises, information, arrangements or understandings not specifically set forth in this Agreement or in the schedules, documents and instruments to be delivered on the Closing Date pursuant to this Agreement. The Parties hereto further acknowledge and agree that, in entering into this Agreement and in delivering the schedules, documents and instruments to be delivered on the Closing Date, they have not in any way relied, and will not in any way rely, upon any oral or written agreements, representations, warranties, statements, promises, information, arrangements or understandings, express or implied, not specifically set forth in this Agreement or in such schedules, documents or instruments.

**Section 12.13 Notices.**

Any notice required or permitted to be given hereunder shall be in writing and shall be effectively given if (i) delivered personally, (ii) sent prepaid courier service or (iii) sent by registered or certified mail (return receipt requested) addressed as follows:

in the case of notice to Purchaser or Subco:

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attn: Brandon Kou

Email: brandon@icaninc.com

with a copy to (which shall not constitute notice):

McMillan LLP

1500-1055 West Georgia Street

Vancouver, British Columbia

V6E 4N7

Attn: Desmond Balakrishnan

Email: desmond.balakrishnan@mcmillan.ca

in the case of notice to the Company:

LEEF Holdings, Inc.

5580 La Jolla Boulevard #395

La Jolla, CA 92037

Attn: Micah Anderson

Email: micah@leefca.com

with a copy to (which shall not constitute notice):

Jackson Tidus, A Law Corporation

2030 Main Street, 12<sup>th</sup> Floor

Irvine, California 92614

Attn: Jason R. Wisniewski

Email: jwisniewski@jacksontidus.law

and

Cassels, Brock & Blackwell LLP

2100 Scotia Plaza, 40 King Street West

Toronto, Ontario

M5H 3C2

Attn: Jonathan Sherman

Email: jsherman@cassels.com

Any notice, designation, communication, request, demand or other document given or sent or delivered as aforesaid shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 delivered as aforesaid, be deemed to have been given, sent, delivered and received on the
 date of delivery; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 sent by mail as aforesaid, be deemed to have been given, sent, delivered and received on
 the fourth Business Day following the date of mailing, unless at any time between the date
 of mailing and the fourth Business Day thereafter there is a discontinuance or interruption
 of regular postal service, whether due to strike or lockout or work slowdown, affecting postal
 service at the point of dispatch or delivery or any intermediate point, in which case the
 same shall be deemed to have been given, sent, delivered and received in the ordinary course
 of the mail, allowing for such discontinuance or interruption of regular postal service.

**Section 12.14 Waiver.**

Any Party hereto which is entitled to the benefits of this Agreement may, and has the right to, waive any term or condition hereof at any time on or prior to the Closing Date, provided however that such waiver shall be evidenced by written instrument duly executed on behalf of such Party.

**Section 12.15 Amendments.**

No modification or amendment to this Agreement may be made unless agreed to by the Parties hereto in writing.

**Section 12.16 Remedies Cumulative.**

The rights and remedies of the Parties under this Agreement are cumulative and in addition to and not in substitution for any rights or remedies provided by law. Any single or partial exercise by any Party hereto of any right or remedy for default or breach of any term, covenant or condition of this Agreement does not waive, alter, affect or prejudice any other right or remedy to which such Party may be lawfully entitled for the same default or breach.

**Section 12.17 Currency.**

Unless otherwise indicated, all dollar amounts referred to in this Agreement are in the lawful money of the United States of America.

**Section 12.18 Number and Gender.**

In this Agreement, unless there is something in the subject matter or context inconsistent therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words
 in the singular number include the plural and such words shall be construed as if the plural
 had been used;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words
 in the plural include the singular and such words shall be construed as if the singular had
 been used; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words
 importing the use of any gender shall include all genders where the context or the Party
 referred to so requires, and the rest of the sentence shall be construed as if the necessary
 grammatical and terminological changes had been made.

**Section 12.19 Time of Essence.**

Time shall be of the essence hereof.

**[Remainder of page intentionally blank]**

The Parties have executed this Agreement as of the first date written above.

---

| | |
|:---|:---|
| **ICANIC BRANDS COMPANY INC.** | **ICANIC BRANDS COMPANY INC.** |
| By: |  |
| Name: |  |
| Title: |  |
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: |  |
| Name: | Micah Anderson |
| Title: | Chief Executive Officer |
| **ICANIC MERGER SUB, INC.** | **ICANIC MERGER SUB, INC.** |
| By: |  |
| Name: |  |
| Title: |  |
| **MICAH ANDERSON** | **MICAH ANDERSON** |
| (solely in its capacity as the Stockholders Representative) | (solely in its capacity as the Stockholders Representative) |

---

**[Signature Page to Merger Agreement]**

**<u>EXHIBIT A</u>**

**FORM OF ACCREDITED INVESTOR CERTIFICATION**

(attached hereto)

**U.S. Representation Letter**

---

| | |
|:---|:---|
| **To:** | **Icanic Brands Company Inc. ("Icanic")** |
| **Re:** | **Merger Agreement dated January 21, 2022 (the "Merger Agreement") between Icanic and Leef Holdings, Inc. ("Leef")** |

---

Upon the completion of the acquisition by Icanic of Leef by way of a merger (the "**Merger**") contemplated by the Merger Agreement, Leef shall become a wholly-owned subsidiary of Icanic. Pursuant to the Merger, the undersigned holder of shares of common stock of Leef ("**Leef Shares**") will receive common shares of Icanic in exchange for the shareholder's Leef Shares (the "**Icanic Shares**").

This Representation Letter is to be executed and delivered by each holder of Leef Shares or securities convertible into Leef Shares (collectively, "**Leef Securities**") who is, or is acting for the account or benefit of, a U.S. Person or a person within the United States (each, an "**Leef U.S. Securityholder**").

The undersigned holder of Leef Securities covenants, represents and warrants to Icanic that:

(a) It
 has full right, power and authority to deliver its Leef Securities and this Representation
 Letter.

(b) It
 has such knowledge, skill and experience in financial, investment and business matters as
 to be capable of evaluating the merits and risks of an investment in the Icanic Shares or
 securities convertible into the common shares of Icanic (the "**Consideration Securities** ")
 to be issued to it pursuant to the Merger, and it is able to bear the economic risk of loss
 of its entire investment. To the extent necessary, the Leef U.S. Securityholder has retained,
 at his or her own expense, and relied upon, appropriate professional advice regarding the
 investment, tax and legal merits and consequences of the Merger Agreement and owning the
 Consideration Securities.

(c) Icanic
 has provided to it the opportunity to ask questions and receive answers concerning the terms
 and conditions of the Merger Agreement and it has had access to such information concerning
 Icanic as it has considered necessary or appropriate in connection with its investment decision
 to acquire the Consideration Securities, including disclosure document(s) furnished to the
 Leef U.S. Securityholder in connection with the solicitation of written consents of the shareholders
 of Leef to approve the Merger, and access to Icanic's public filings available on the
 Internet at <u>www.sedar.com</u>, and that any answers to questions and any request for information
 have been complied with to the Leef U.S. Securityholder's satisfaction.

(d) It
 is acquiring the Consideration Securities for its own account, for investment purposes only
 and not with a view to any resale or distribution and, in particular, it has no intention
 to distribute either directly or indirectly the Consideration Securities in the United States
 or to, or for the account or benefit of, a U.S. Person or a person in the United States;
 provided, however, that this paragraph shall not restrict the Leef U.S. Securityholder from
 selling or otherwise disposing of the Consideration Securities pursuant to registration thereof
 pursuant to the *United States Securities Act of 1933*, as amended, and the rules and
 regulations promulgated thereunder (the "**U.S. Securities Act**") and any
 applicable state securities laws or under an exemption from such registration requirements.

(e) The
 address of the Leef U.S. Securityholder set out in the signature block below is the true
 and correct principal address of the Leef U.S. Securityholder and can be relied on by Icanic
 for the purposes of state blue sky laws, and the Leef U.S. Securityholder is not an entity
 that has been formed for the specific purpose of purchasing or acquiring the Securities.

(f) It
 understands (i) the Consideration Securities have not been and will not be registered under
 the U.S. Securities Act or the securities laws of any state of the United States; and (ii)
 the offer and sale contemplated by the Merger Agreement is being made in reliance on an exemption
 from such registration requirements in reliance on Rule 506(b) of Regulation D and/or Section
 4(a)(2) of the U.S. Securities Act.

(g) The
 Leef U.S. Securityholder is an "accredited investor" as defined in Rule 501(a)
 of Regulation D under the U.S. Securities Act by virtue of meeting one of the criteria set
 forth in **Appendix A** hereto (**please initial on the appropriate lines on Appendix A**), which Appendix A forms an integral part hereof.

(h) The
 Leef U.S. Securityholder has not purchased the Consideration Securities as a result of any
 form of "general solicitation" or "general advertising" (as those
 terms are used in Regulation D under the U.S. Securities Act), including advertisements,
 articles, press releases, notices or other communications published in any newspaper, magazine
 or similar media or on the Internet, or broadcast over radio or television, or the Internet
 or other form of telecommunications, including electronic display, or any seminar or meeting
 whose attendees have been invited by general solicitation or general advertising.

(i) It
 understands and agrees that the Consideration Securities may not be acquired in the United
 States or by a U.S. Person or on behalf of, or for the account or benefit of, a U.S. Person
 or a person in the United States unless registered under the U.S. Securities Act and any
 applicable state securities laws or unless an exemption from such registration requirements
 is available.

(j) It
 acknowledges that it is not acquiring the Consideration Securities as a result of, and will
 not itself engage in, any "directed selling efforts" (as defined in Regulation
 S under the U.S. Securities Act) in the United States in respect of the Consideration Securities
 which would include any activities undertaken for the purpose of, or that could reasonably
 be expected to have the effect of, conditioning the market in the United States for the resale
 of the Consideration Securities.

(k) If
 it is entitled to receive share purchase warrants or options convertible into Icanic Shares
 under the Merger Agreement, it acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) the
 securities of Icanic issuable upon exercise of such warrants or options convertible into
 Icanic Shares (the "**Icanic Underlying Securities**" and together with the
 Consideration Securities, the "**Securities**") have not been and will not
 be registered under the U.S. Securities Act or any state securities laws; and

ii) such warrants or options convertible into Icanic Shares may not be exercised in the United States, or for the account or benefit of a U.S. Person or a person in the United States, absent an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

(l) It
 acknowledges that the Securities will be "restricted securities", as such term
 is defined in Rule 144(a)(3) under the U.S. Securities Act, and may not be offered, sold,
 pledged, or otherwise transferred, directly or indirectly, without prior registration under
 the U.S. Securities Act and applicable state securities laws, and it agrees that if it decides
 to offer, sell, pledge or otherwise transfer, directly or indirectly, any of the Securities,
 it will not offer, sell or otherwise transfer, directly or indirectly, the Securities except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 Icanic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) outside
 the United States in an "offshore transaction" meeting the requirements of Rule
 904 of Regulation S under the U.S. Securities Act, if available, and in compliance with applicable
 local laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 compliance with the exemption from the registration requirements under the U.S. Securities
 Act provided by Rule 144 thereunder, if available, and in accordance with any applicable
 state securities or "blue sky" laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in
 a transaction that does not require registration under the U.S. Securities Act or any applicable
 state securities laws governing the offer and sale of securities,

and, in the case of each of (ii) and (iii) above, it has prior to such sale furnished to Icanic an opinion of counsel in form and substance reasonably satisfactory to Icanic stating that such transaction is exempt from registration under applicable securities laws and that the legend referred to in paragraph (m) below may be removed.

(m) The
 certificates representing the Securities, as well as all certificates issued in exchange
 for or in substitution of the foregoing, until such time as the same is no longer required
 under the applicable requirements of the U.S. Securities Act or applicable state securities
 laws and regulations, will bear, on the face of such certificate, the following legend:

"THE SECURITIES REPRESENTED HEREBY [*for Icanic options and warrants add:* AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. [*For Icanic Shares add:* DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.]"

provided, that if at the time of original issuance of the Securities, Icanic is a "foreign issuer" (as such term is defined in Rule 902(e) of Regulation S under the U.S. Securities Act), and are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation S and in compliance with Canadian local laws and regulations, the legend set forth above may be removed by providing to the registrar and transfer agent of Icanic:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 executed declaration and undertaking in substantially the form set forth as Appendix B attached
 hereto (or in such other forms as Icanic may prescribe from time to time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an
 executed broker affirmation, in substantially the form included in Appendix B attached hereto
 (or in such other forms as Icanic may prescribe from time to time); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 requested by Icanic or the transfer agent, an opinion of counsel of recognized standing in
 form and substance reasonably satisfactory to Icanic and the transfer agent to the effect
 that such sale is being made in compliance with Rule 904 of Regulation S; and

provided, further, that, if any Securities are being sold otherwise than in accordance with Regulation S and other than to Icanic, the legend may be removed by delivery to the registrar and transfer agent and Icanic of an opinion of counsel of recognized standing, in form and substance reasonably satisfactory to Icanic, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

(n) It
 understands and agrees that there may be material tax consequences to the Leef U.S. Securityholder
 of an acquisition, holding or disposition of any of the securities of Icanic. Icanic gives
 no opinion and makes no representation with respect to the tax consequences to the Leef U.S.
 Securityholder under United States federal, state, local or other tax laws of the undersigned's
 acquisition, holding or disposition of such securities.

(o) It
 consents to Icanic making a notation on its records or giving instructions to any transfer
 agent of Icanic in order to implement the restrictions on transfer set forth and described
 in this Representation Letter and the Merger Agreement.

(p) It
 understands that (i) Icanic may be deemed to be an issuer that is, or that has been at any
 time previously, an issuer with no or nominal operations and no or nominal assets other than
 cash and cash equivalents (a "**Shell Company** "), (ii) if Icanic is deemed
 to be, or to have been at any time previously, a Shell Company, Rule 144 under the U.S. Securities
 Act may not be available for resales of the Securities unless the requirements of Rule 144(i)
 under the U.S. Securities Act are met, and (iii) Icanic will not be obligated to make Rule
 144 under the U.S. Securities Act available for resales of the Securities.

(q) It
 understands and agrees that the financial statements of Icanic have been prepared in accordance
 with International Financial Reporting Standards and therefore may be materially different
 from financial statements prepared under U.S. generally accepted accounting principles and
 therefore may not be comparable to financial statements of United States companies.

(r) It
 understands and acknowledges that Icanic is incorporated outside the United States, consequently,
 it may be difficult to provide service of process on Icanic and it may be difficult to enforce
 any judgment against Icanic.

(s) It
 understands that Icanic will not have any obligation to register the Securities under the
 U.S. Securities Act or any applicable state securities or "blue sky" laws or
 to take action so as to permit resales of such Securities. Accordingly, the Leef U.S. Securityholder
 understands that absent registration, it may be required to hold the Securities indefinitely.
 As a consequence, the Leef U.S. Securityholder understands it must bear the economic risks
 of the investment in such Securities for an indefinite period of time.

The foregoing representations contained in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the Closing. If any such representations shall not be true and accurate prior to the Closing, the undersigned shall give immediate written notice of such fact to Icanic prior to the Closing.

Dated _____________________ 2022.

---

| |
|:---|
| X |
| Signature of individual (if Leef U.S. Securityholder **is** an individual) |
| X |
| Signature of Authorized signatory (if Leef U.S. Securityholder is **not** an individual) |
| Name of Leef U.S. Securityholder (**please print**) |
| Address of Leef U.S. Securityholder (**please print**) |
| Name of authorized signatory (**please print**) |
| Official capacity of authorized signatory (**please print**) |

---

**Appendix "A" to**

**U.S. Representation Letter for Leef U.S. Securityholders**

 

*To be completed by Leef U.S. Securityholders who qualify as Accredited Investors*

In addition to the covenants, representations and warranties contained in the Merger Agreement and the Representation Letter to which this Appendix is attached, the undersigned Leef U.S. Securityholder covenants, represents and warrants to Icanic that the Leef U.S. Securityholder is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act by virtue of meeting one of the following criteria (please initial on the appropriate lines):

---

| | |
|:---|:---|
| 1. Initials_____ | Any bank as defined in Section 3(a)(2) of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act of 1934; any investment adviser registered pursuant to section 203 of the *Investment Advisers Act of 1940* or registered pursuant to the laws of a state; any investment adviser relying on the exemption from registering with the United States Securities and Exchange Commission (the "**Commission**") under section 203(l) or (m) of the *Investment Advisers Act of 1940*; any insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; any investment company registered under the U.S. Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958; any rural business investment company as defined in section 384A of the *Consolidated Farm and Rural Development Act*; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; any employee benefit plan within the meaning of the U.S. *Employee Retirement Income Security Act of 1974* if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000, or, if a self-directed plan, with investment decisions made solely by persons that are "accredited investors" (as such term is defined in Rule 501 of Regulation D under the U.S. Securities Act); |
| 2. Initials_____ | Any private business development company as defined in Section 202(a)(22) of the U.S. *Investment Advisers Act of 1940*; |

---

---

| | |
|:---|:---|
| 3. Initials_____ | Any organization described in Section 501(c)(3) of the U.S. *Internal Revenue Code*, corporation, Massachusetts or similar business trust, partnership, or limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of US$5,000,000; |
| 4. Initials_____ | Any trust with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person (being defined as a person who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment); |
| 5. Initials_____ | Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent (being a cohabitant occupying a relationship generally equivalent to that of a spouse), excluding the value of that person's primary residence, at the time of purchase, exceeds US$1,000,000 (Note: For purposes of calculating net worth, |
|  | (i) the person's primary residence shall not be included as an asset; |
|  | (ii) indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of this Representation Letter, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of this Representation Letter exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); |
|  | (iii) indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability; and |
|  | (iv) for the purposes of calculating joint net worth of the person and that person's spouse or spousal equivalent, (A) joint net worth can be the aggregate net worth of the investor and spouse or spousal equivalent, and (B) assets need not be held jointly to be included in the calculation; and reliance by the person and that person's spouse or spousal equivalent on the joint net worth standard does not require that the securities be purchased jointly); |
| 6. Initials_____ | Any natural person who had an individual income in excess of US$200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of US$300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; |

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| | |
|:---|:---|
| 7. Initials_____ | Any director or executive officer of Icanic; or |
| 8. Initials_____ | Any entity in which all of the equity owners meet the requirements of at least one of the above categories – *if this category is selected, you must identify each equity owner and indicate the category of accredited investor (by reference to the applicable number in this Representation Letter):* |

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| | |
|:---|:---|
| **Name of Equity Owner** | **Category of <br> Accredited Investor** |

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| | |
|:---|:---|
|  | Note: It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this category. If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this category will be available; |
| 9. Initials_____ | Any entity, of a type not listed in Categories 1- 4 or 8, not formed for the specific purpose of acquiring the securities offered, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the *Investment Company Act of 1940*); |
| 10. Initials_____ | Any natural person holding in good standing one or more of the following professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status: The General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), and the Licensed Investment Adviser Representative (Series 65); |
| 11. Initials_____ | Any "family office," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940: (i) with assets under management in excess of US$5,000,000, (ii) that is not formed for the specific purpose of acquiring the securities offered, and (iii) whose prospective investment is directed by a person (a "Knowledgeable Family Office Administrator") who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or |

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| | |
|:---|:---|
| 12. Initials_____ | Any "family client," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940, of a family office meeting the requirements set forth in Category 11 above and whose prospective investment in Icanic is directed by such family office with the involvement of the Knowledgeable Family Office Administrator. |

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Dated___________________ 2022.

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| |
|:---|
| X |
| Signature of individual (if Leef U.S. Securityholder **is** an individual) |
| X |
| Signature of authorized signatory (if Leef U.S. Securityholder is **not** an individual) |
| Name of Leef U.S. Securityholder (**please print**) |
| Address of Leef U.S. Securityholder (**please print**) |
| Name of authorized signatory (**please print**) |
| Official capacity of authorized signatory (**please print**) |

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**Appendix "B"**

Form of Declaration and Undertaking for Removal of Legend –<br> Rule 904 under the U.S. Securities Act of 1933

To: Icanic Brands Company Inc. (the "Company") <br>And To: The transfer agent for the Company's Common Shares

The undersigned (A) acknowledges that the sale of __________________________common shares in the capital of the Company, represented by Share Certificate No.(s) __________________________or held through the Direct Registration System (DRS) in DRS Holder Account No. __________________________, to which this declaration relates, is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and (B) certifies that (1) the undersigned is not an "affiliate" (as defined in Rule 405 under the U.S. Securities Act) of the Company (except solely by virtue of being an officer or director of the Company) or a "distributor", as defined in Regulation S, or an affiliate of a "distributor"; (2) the offer of such securities was not made to a person in the United States and either (a) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (b) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market within the meaning of Rule 902(b) of Regulation S under the U.S. Securities Act, and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States; (3) neither the seller nor any affiliate of the seller nor any person acting on their behalf has engaged in any directed selling efforts in connection with the offer and sale of such securities; (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act); (5) the seller does not intend to replace the securities sold in reliance on Rule 904 of Regulation S under the U.S. Securities Act with fungible unrestricted securities; and (6) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or a scheme to evade the registration provisions of the U.S. Securities Act. Unless otherwise specified, terms used herein have the meanings given to them by Regulation S under the

U.S. Securities Act.

Dated__________________20____.

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| |
|:---|
| X |
| Signature of individual (if Seller is an individual) |
| X |
| Signature of authorized signatory (if Seller is not an individual) |
| Name of Seller (please print) |
| Name of authorized signatory (please print) |
| Official capacity of authorized signatory (please print) |

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**Affirmation by Seller's Broker-Dealer <br> (Required for sales pursuant to Section (B)(2)(b) above)**

We have read the representations of our customer __________________________(the "Seller") contained in the foregoing Declaration for Removal of Legend, dated __________________________,20_____, with regard to the sale, for such Seller's account, of __________________________common shares (the "Securities") of the Company represented by certificate number(s) __________________________, or held through the Direct Registration System (DRS) in DRS Holder Account No. __________________________. We have executed sales of the Securities pursuant to Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), on behalf of the Seller. In that connection, we hereby represent to you as follows:

(1) no offer to sell Securities was made to a person in the United States;

(2) the sale of the Securities was executed in, on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market (as defined in Rule 902(b) of Regulation S under the U.S. Securities Act), and, to the best of our knowledge, the sale was not pre-arranged with a buyer in the United States;

(3) no "directed selling efforts" were made in the United States by the undersigned, any affiliate of the undersigned, or any person acting on behalf of the undersigned; and

(4) we have done no more than execute the order or orders to sell the Securities as agent for the Seller and will receive no more than the usual and customary broker's commission that would be received by a person executing such transaction as agent.

For purposes of these representations: "affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the undersigned; "directed selling efforts" means any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities (including, but not be limited to, the solicitation of offers to purchase the Securities from persons in the United States); and "United States" means the United States of America, its territories or possessions, any State of the United States, and the District of Columbia.

Legal counsel to the Company shall be entitled to rely upon the representations, warranties and covenants contained herein to the same extent as if this affirmation had been addressed to them.

Dated this__________day of _____________________, 20_______.

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|:---|
| Signature of Signatory: |
| Name and Title of Authorized Signatory: |
| Name of Brokerage Company: |

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**<u>EXHIBIT B</u>**

**FORM OF EMPLOYMENT AGREEMENT**

(attached hereto)

**EMPLOYMENT AGREEMENT**

This Employment Agreement (this "**Agreement**") is entered into as of [•], 2022 by and between Icanic Brands Company Inc., a company incorporated pursuant to the *Business Corporations Act* (British Columbia) (the "**Corporation**"), and Micah Anderson, an individual and resident of the State of California (hereinafter called "**Executive**").

<u>W I T N E S S E T H</u>:

**WHEREAS**, this Agreement is entered into in connection with that certain Merger Agreement dated as of January 21 2022 (the "**Merger Agreement**") by and among the Corporation, LEEF Holdings, Inc., a Nevada corporation (the "**Company**"), Icanic Merger Sub, Inc., a Nevada corporation ("**Subco**"), and Micah Anderson, in his capacity as representative of the Company Stockholders, pursuant to which Subco was merged with and into the Company with the Company surviving as a wholly-owned subsidiary of the Corporation (the "**Merger**");

**WHEREAS**, the Closing (as defined in the Merger Agreement) of the Merger is conditioned upon the execution and delivery of this Agreement; and

**WHEREAS**, the Corporation and/or its Affiliates (as defined below) desires to employ Executive from and after the Closing under the terms of this new Agreement, and Executive is willing to accept such employment on the terms and subject to the conditions hereinafter set forth from and after the Closing.

**NOW, THEREFORE**, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment by Corporation; Location</u>. The Corporation and/or its Affiliates hereby agrees to employ Executive as the Company's full-time Chief Executive Officer. As the Company's Chief Executive Officer, Executive will report to the Corporation's Board of Directors (the "**Board of Directors**"), and shall have such duties consistent with that of a Chief Executive Officer of the Company and/or that may from time to time be designated or assigned to Executive pursuant to the directives of the Board of Directors. Upon mutual agreement of the Corporation and Executive, the Executive's title and/or position may be changed.

Except for travel when and as required in the performance of Executive's duties hereunder, Executive shall perform his duties hereunder from the Company's principal executive offices in San Diego, California. Executive shall not be required to relocate his primary residency to perform his duties under this Agreement. Executive shall only be required to travel to the Corporation's corporate headquarters not more than once a calendar quarter and for any scheduled meetings of the Board of Directors or meetings in which the entire executive team is required.

-1- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Executive's Acceptance of Employment</u>. Executive hereby accepts such employment and agrees that throughout the period of his employment hereunder, he will devote the necessary attention, knowledge and skills, faithfully, diligently and to the best of his ability, in furtherance of the business of the Corporation and companies in which the Corporation owns at least 50% of the entity's voting shares (its "**Affiliates**"), he will perform the duties assigned to him pursuant to <u>Section 1</u> hereof, subject, at all times, to the direction and control of the Board of Directors, and he will do such reasonable traveling as may be required of him in the performance thereof. Notwithstanding the foregoing, the Corporation acknowledges that Executive currently maintains an ownership interest in the entities identified in Attachment A and that Executive shall be authorized to devote sufficient time to managing those investments provided that (i) such activities in no way interfere with the performance of Executive's duties pursuant to this Agreement, and (ii) Executive will not take on any additional ownership interests in any other cannabis related entities absent disclosure to and approval of the Board of Directors, not to be unreasonably withheld.

Executive shall at all times be subject to, observe and carry out such rules, regulations, policies, directions and restrictions as the Corporation shall from time to time establish. Executive agrees that he shall not, without the prior written approval of the Board of Directors, directly or indirectly, accept employment or compensation from or perform services of any nature for, any business enterprise other than the Corporation and its Affiliates, excluding those entities attached on <u>Attachment A</u>. Nothing in this Agreement shall preclude Executive from engaging in appropriate civic, charitable or religious activities or from devoting a reasonable amount of time to private investments, as long as such activities and/or services do not interfere or conflict with his responsibilities or duties to the Corporation as determined by the Board of Directors in its sole reasonable discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term</u>. The term of Executive's employment under this Agreement shall be the period commencing on the Closing Date (as defined in the Merger Agreement) and continuing until the third (3rd) anniversary thereof, unless terminated earlier pursuant to <u>Section 7</u> (the "**Initial Term**"). At the conclusion of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms (each, a "**Renewal Term**") unless either party gives the other written notice of non-renewal at least ninety (90) days' prior to the end of the Initial Term or a Renewal Term, as the case may be, and subject to earlier termination as provided in <u>Section 7</u> hereof. As used in this Agreement, the "**Term**" shall mean the Initial Term together with any Renewal Terms, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation/Bonus/Options/Benefits/Equity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The Corporation will pay to Executive as compensation for his services hereunder an annual base salary (the "**Base Salary**") of Two Hundred Fifty Thousand U.S. Dollars (US$250,000) per annum payable in equal installments in accordance with the Corporation's normal payroll policy, but not less than monthly. The Base Salary shall be reviewed annually by Executive and the Board of Directors may be increased at any time; *provided, however*, that Executive's Base Salary shall not be subject to reduction. Upon any increase to Executive's Base Salary, the then current salary as so increased shall be the "Base Salary" for purposes of this Agreement.

-2- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Commencing with the calendar year ending December 31, 2021, and for each calendar year thereafter while this Agreement is in effect (each, a "**Plan Year**"), Executive shall be eligible for an annual incentive performance bonus (the "**Incentive Bonus**"). The target potential amount of the Incentive Bonus payable to Executive shall be up to 100% of Executive's Base Salary earned during the applicable Plan Year. The Incentive Bonus will be conditioned on the satisfaction of individual and company objectives as set forth below and subject to <u>Section 7</u> of this Agreement, and shall be payable on or before February 15 of the year following the Plan Year. By the end of January of each Plan Year, the Corporation's Board of Directors and/or Compensation Committee of the Board of Directors and Executive shall jointly establish the incentive target objectives that Executive has to meet to earn the Incentive Bonus; *provided, however*, for the initial partial year of this Agreement through December 31, 2021, the targets shall be those as previously determined by the Board of Directors of the Company pursuant to the terms and conditions of Executive's Prior Agreement (as defined below). The payment of any Incentive Bonus pursuant to this <u>Section 4.2</u> shall be made in accordance with the normal payroll practices of the Corporation, less required deductions for state and federal withholding tax, social security and all other employment taxes and authorized payroll deductions, and provided Executive satisfies the conditions for earning the Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Effective upon the Closing, the Corporation shall grant you stock options to purchase up to 4,200,000 (as adjusted for stock splits, reclassifications and the like) shares (the "**Option Shares**") of the Company's common stock. Additionally, following the Closing, the Executive shall, subject to the approval of the Board of Directors, receive such other grants of Option Shares, restricted stock ("**Restricted Stock**") and/or restricted stock units ("**RSUs**", and together with the Option Shares and Restricted Stock, the "**Equity Awards**") in connection with (a) Executive's individual performance and/or (b) the performance of the Corporation and/or certain operating subsidiaries of the Corporation (including the Company and its subsidiaries), in each case equivalent in amount and value granted to other similar situated executives of the Corporation. All such Equity Awards shall be issued pursuant to, and subject to the terms and conditions of the Corporation's stock option and incentive plan adopted by the shareholders of the Corporation on May 27, 2016, as amended from time to time (the "**Equity Plan**") and an award agreement thereunder (the "**Award Agreement**") to be entered into with the Corporation. The Equity Awards shall vest as set forth in the Award Agreement; *provided*, that to the extent the Corporation grants any Equity Awards to Executive during the Term, then the Corporation shall in such Award Agreement provide that (x) in the event a Change of Control (as defined below) is consummated during the Term, or (y) Executive either (i) is terminated other than for Cause, death or Disability or (ii) resigns for Good Reason (as defined below), then all of Executive's unvested Equity Awards shall automatically and immediately vest in full. Executive shall, subject to the approval of the Board of Directors, participate in a management incentive plan (the "**Management Plan**"). The Management Plan shall allocate stock grants of the Corporation's common shares based on all business acquisitions (whether by merger, asset purchase or stock purchase) completed by the Corporation as well as revenue growth of the Corporation post-closing of any such acquisition transaction. The Management Plan shall also provide for stock grants of the Corporation's common shares to Executive if there is a Change of Control (as defined below) of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Executive shall be entitled to the Corporation's group medical and dental insurance benefits. At Executive's request, however, in lieu of providing Executive with group medical and dental insurance benefits, the Corporation shall reimburse Executive for the cost of obtaining his own private medical and dental insurance policy, provided that the monthly amount of such insurance premiums shall not exceed Five Thousand Dollars ($5,000) per month. Executive shall also be entitled to a life insurance policy covering his own death with the beneficiary as determined by Executive in his sole discretion in the amount of not less than One Million U.S. Dollars (US$1,000,000) with the Corporation responsible for paying all expenses and premiums of such policy during the Term.

-3- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 The Corporation recognizes that Executive is required to drive throughout California to fully perform his duties. As such the Corporation agrees to provide Executive with a monthly auto subsidy of One Thousand U.S. Dollars (US$1,000), and shall also reimburse Executive up to Two Thousand U.S. Dollars (US$2,000) for other travel expense, including airfare. Such auto subsidy payments shall be in lieu of any obligation to reimburse Executive for mileage or other driving related expenses, notwithstanding any other policy of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 The Corporation shall issue to Executive and/or to such other employees of the Corporation and its Affiliates as the Executive shall direct, the following performance equity payments (capitalized terms used in this <u>Section 4.6</u> shall have the meaning ascribed to them in the Merger Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the First Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(a) of the Merger Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Second Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(b) of the Merger Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Third Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(c) of the Merger Agreement.

The Resulting Issuer Common Shares issuable pursuant to this <u>Section 4.6</u> may be issued as Equity Awards under the Equity Plan; *provided*, that such Resulting Issuer Common Shares so issued under the Equity Plan shall be fully vested upon issuance and shall not be subject to vesting or any other condition of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Business Expenses</u>. For business travel related to Executive's duties, the Corporation shall reimburse Executive for all out-of-pocket expenses reasonably incurred by him in accordance with the Corporation's travel and entertainment policy and procedures and any amendment thereof that the Corporation may adopt during his employment. Executive shall be authorized to fly Business Class or First Class for any air travel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Vacation</u>. Executive shall be entitled to vacation in accordance with the Corporation's vacation policy as in effect from time to time; provided that Executive shall be entitled to no less than a minimum amount of six (6) weeks per year.

-4- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Termination by the Corporation for Cause</u>. The Corporation may terminate Executive's employment immediately at any time and without notice for "Cause", subject to any applicable notice and cure period. For purposes of this Agreement, "**Cause**" shall mean (a) a material breach by Executive of his obligations under this Agreement that is not cured within thirty (30) days following receipt of written notice thereof from the Corporation's Board of Directors; (b) Executive's theft or knowing falsification of any Corporation documents or records; (c) Executive's conviction (including any plea of guilty or nolo contendere) of any felony or other misdemeanor (excepting in each case any conviction or plea relating to any charge associated with state or federal laws relating to cannabis, hemp and/or psychedelics) that involves theft, fraud or an act of dishonesty; (d) Executive's repeated failure to perform his duties on behalf of the Corporation in a competent and diligent manner, which such failure causes material financial harm to the Corporation, if such failure is not cured within thirty (30) days following receipt of written notice thereof from the Corporation's Board of Directors. Any notice of termination required under this <u>Section 7.1</u> shall identify the events or conduct constituting the grounds for termination with sufficient specificity so as to enable Executive to take steps to cure such default as permitted. In the event Executive's employment is terminated in accordance with this <u>Section 7.1</u>, Executive shall be entitled to receive only the Base Salary through the effective date of termination, plus payment for any expenses that may be due hereunder through the effective date of termination, plus any other amounts required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Termination Without Cause By The Corporation/By the Executive for Good Reason/By the Corporation - Separation Package</u>. In the event that at any time (a) the Corporation terminates Executive's employment under this Agreement without Cause (as defined above) or (b) Executive terminates his employment for Good Reason, Executive will receive all Base Salary and Incentive Bonus amounts payable through the effective date of termination plus (A) a lump sum cash severance payment equal to twenty-four (24) months of his Base Salary then in effect, plus (B) a lump sum cash severance payment for a prorated portion of any Incentive Bonus for which Executive was eligible during the Plan Year in which the termination occurs, provided that the relevant milestones have been achieved on a pro rata basis for the relevant period, plus (C) payment for any expenses that may be due hereunder through the effective date of termination, plus (D) any other amounts required by applicable law. In addition, all Equity Awards granted shall fully accelerate and vest. For the purposes of this Agreement, the term "**Good Reason**" shall mean (i) any material reduction in Executive's annual Base Salary, bonus potential or overall compensation, (ii) Executive's position, authority, or duties are materially reduced, (iii) Executive's assigned work location is moved to a location more than 50 miles from San Diego, California, or (iv) the Corporation materially breaches the provisions of this Agreement and fails to cure such breach within thirty (30) days following receipt of written notice thereof from Executive. Executive shall not be entitled to any portion of the Separation Package described in this <u>Section 7.2</u> unless Executive first executes, and does not revoke as may be allowed by law, a complete release of all claims in favor of the Corporation, its employees, officers, and agents, in form chosen by the Corporation in its reasonable discretion.

-5- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Termination by the Corporation for Disability or upon Death</u>. This Agreement shall automatically terminate upon the death of Executive. In addition, this Agreement may be terminated by the Corporation upon Executive's Disability. For the purposes of this Agreement, the term "**Disability**" shall mean Executive's failure to substantially perform his duties hereunder for either three (3) consecutive months or an aggregate of 120 days in any rolling twelve (12) month period, as determined by the Board acting in good faith, and after making reasonable accommodations and complying with all requirements of the Americans with Disabilities Act and any state law equivalent legislation. Any questions as to the existence, extent or potentiality of illness or incapacity of Executive upon which the Corporation and Executive cannot agree shall be determined by a qualified independent physician selected by Executive, a physician selected by the Corporation's Board of Directors, and a third physician selected by the other two physicians. The determination of such physicians certified in writing to Executive and to the Corporation shall be final and conclusive for all purposes of this Agreement. In the event Executive's employment is terminated in accordance with this <u>Section 7.3</u>, Executive shall be entitled to receive (a) the Base Salary through the effective date of termination, plus (b) payment for any expenses that may be due hereunder through the effective date of termination, plus (c) a lump sum cash severance payment for a prorated portion of any Incentive Bonus for which Executive was eligible during the Plan Year in which the termination occurs, provided that the relevant milestones have been achieved on a pro rata basis for the relevant period, plus (d) any other amounts required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Termination Upon a Change of Control</u>. For purposes of this Agreement, "**Change of Control**" shall mean: (1) a merger or consolidation or the sale or exchange by the stockholders of the Corporation of all or substantially all of the capital stock of the Corporation, where the stockholders of the Corporation immediately before such transaction do not obtain or retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock or other voting equity of the surviving or acquiring corporation or other surviving or acquiring entity, in substantially the same proportion as before such transaction; (2) any transaction or series of related transactions to which the Corporation is a party in which in excess of fifty percent (50%) of the Corporation's voting power is transferred; or (3) the sale or exchange of all or substantially all of the Corporation's assets (other than a sale or transfer to a subsidiary of the Corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the "**Code**")), where the stockholders of the Corporation immediately before such sale or exchange do not obtain or retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock or other voting equity of the corporation or other entity acquiring the Corporation's assets, in substantially the same proportion as before such transaction; *provided, however*, that a Change of Control shall not be deemed to have occurred pursuant to any transaction or series of transactions relating to a public or private financing or re-financing, the principal purpose of which is to raise money for the Corporation's working capital or capital expenditures and which does not result in a change in a majority of the members of the Board of Directors. Immediately preceding a Change of Control, any then unvested portion of the Option will become fully vested. If, within three (3) months immediately preceding a Change of Control or within six (6) months immediately following a Change of Control, the Executive's employment is terminated by the Corporation for any reason other than Cause or because of a Disability, then the Executive shall be entitled to receive each of the payments, accelerated vesting and other benefits provided in <u>Section 7.2</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Resignation</u>. In the event that Executive resigns or otherwise terminates this Agreement, other than for Good Reason, Executive will only be entitled to receive Executive's Base Salary earned up to the date of termination.

-6- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Duty of Loyalty</u>. In consideration of the Corporation entering into this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Executive agrees that during the Term of this Agreement he will not directly or indirectly own, manage, operate, join, control, participate in, perform any services for, invest in, or otherwise be connected with, in any manner, whether as an officer, director, employee, consultant, partner, investor or otherwise, any business entity which is engaged in any business in which the Corporation or any of its Affiliates is currently engaged or is engaged at the termination of this Agreement, *provided however* that nothing in this <u>Section 8.1</u> shall be deemed to prohibit Executive (a) from managing the businesses or his investments identified on <u>Attachment A</u> or (ii) investing his funds in securities of a company if the securities of such company are listed for trading on a national stock exchange or traded in the over-the-counter market and Executive's holdings therein represent less than five percent (5%) of the total number of shares or principal amount of other securities of such company outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Executive agrees that Executive will not, during the Term, and during the one (1) year period following the termination of the Executive's employment, directly or indirectly, by action alone or in concert with others, induce or influence, or seek to induce or influence any person who is engaged by the Corporation or any of its Affiliates as an employee, agent, independent contractor or otherwise, to terminate his employment or engagement, nor shall Executive, directly or indirectly, through any other person, firm or corporation, employ or engage, or solicit for employment or engagement, or advise or recommend to any other person or entity that such person or entity employ or engage or solicit for employment or engagement, any person or entity employed or engaged by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Confidentiality Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 As used herein, the term "**Confidential Information**" shall mean any and all information of the Corporation and of its Affiliates (for purposes of <u>Sections 9</u>, <u>10</u> and <u>11</u> of this Agreement, the Corporation's Affiliates shall be deemed included within the meaning of "**Corporation**"), including, but not limited to, all data, compilations, programs, devices, strategies, or methods concerning or related to (a) the Corporation's finances, financial condition, results of operations, employee relations, amounts of compensation paid to officers and employees and any other data or information relating to the internal affairs of the Corporation and its operations; (b) the terms and conditions (including prices) of sales and offers of sales of the Corporation's products and services; (c) the terms, conditions and current status of the Corporation's agreements and relationship with any customer or supplier; (d) the customer and supplier lists and the identities and business preferences of the Corporation's actual and prospective customers and suppliers or any employee or agent thereof with whom the Corporation communicates; (e) the trade secrets, manufacturing and operating techniques, price data, costs, methods, systems, plans, procedures, formulas, processes, hardware, software, machines, inventions, designs, drawings, artwork, blueprints, specifications, and strategic plans possessed, developed, accumulated or acquired by the Corporation; (f) any communications between the Corporation, its officers, directors, shareholders, or employees, and any attorney retained by the Corporation for any purpose, or any person retained or employed by such attorney for the purpose of assisting such attorney in his or her representation of the Corporation;

(g) any other non-public information and knowledge with respect to the Corporation's products, whether developed or in any stage of development by the Corporation; (h) the abilities and specialized training or experience of others who as employees or consultants of the Corporation during the Executive's employment have engaged in the design or development of any such products; and (i) any other matter or thing, whether or not recorded on any medium, (x) by which the Corporation derives actual or potential economic value from such matter or thing being not generally known to other persons or entities who might obtain economic value from its disclosure or use, or (y) which gives the Corporation an opportunity to obtain an advantage over its competitors who do not know or use the same.

-7- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Executive acknowledges and agrees that the Corporation is engaged in a highly competitive business and has expended, or will expend, significant sums of money and has invested, or will invest, a substantial amount of time to develop and maintain the secrecy of the Confidential Information. The Corporation has thus obtained, or will obtain, a valuable economic asset which has enabled, or will enable, it to develop an extensive reputation and to establish long-term business relationships with its suppliers and customers. If such Confidential Information were disclosed to another person or entity or used for the benefit of anyone other than the Corporation, the Corporation would suffer irreparable harm, loss and damage. Accordingly, Executive acknowledges and agrees that, unless the Confidential Information becomes publicly known through legitimate origins not involving an act or omission by Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Confidential Information is, and at all times hereafter shall remain, the sole property of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive shall use his best efforts and the utmost diligence to guard and protect the Confidential Information from disclosure to any competitor, customer or supplier of the Corporation or any other person, firm, corporation or other entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) unless the Corporation gives Executive prior express written permission, during his employment and thereafter, Executive shall not use for his own benefit, or divulge to any competitor or customer or any other person, firm, corporation, or other entity, any of the Confidential Information which Executive may obtain, learn about, develop or be entrusted with as a result of Executive's employment by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 Executive also acknowledges and agrees that all documentary and tangible Confidential Information including, without limitation, such Confidential Information as Executive has committed to memory, is supplied or made available by the Corporation to the Executive solely to assist him in performing his services under this Agreement. Executive further agrees that after his employment with the Corporation is terminated for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive shall not remove from the property of the Corporation and shall immediately return to the Corporation, all documentary or tangible Confidential Information in his possession, custody, or control and not make or keep any copies, notes, abstracts, summaries or other record of any type of Confidential Information; and

-8- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive shall immediately return to the Corporation any and all other property of the Corporation in his possession, custody or control, including, without limitation, any and all keys, security cards, passes, credit cards and marketing literature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Execute understands that nothing in this Agreement prohibits Executive from reporting to any governmental authority information concerning possible violations of law or regulation and that Executive may disclose Confidential Information to a government official or to an attorney and use it in certain court proceedings without fear of prosecution or liability, provided Executive files any document containing Confidential Information under seal and does not disclose the Confidential Information, except pursuant to court order.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Remedies</u>. Executive acknowledges and agrees that the business of the Corporation is highly competitive and that the provisions of <u>Sections 8</u>, <u>9</u> and <u>10</u> are reasonable and necessary for the protection of the Corporation and that any violation of such covenants would cause immediate, immeasurable and irreparable harm, loss and damage to the Corporation not adequately compensable by a monetary award. Accordingly, Executive agrees without limiting any of the other remedies available to the Corporation, that any violation of said covenants, or any one of them, may be enjoined or restrained by any court of competent jurisdiction, and that any temporary restraining order or emergency, preliminary or final injunctions may be issued by any court of competent jurisdiction, without notice and without bond. In the event any proceedings are commenced by the Corporation against Executive for any actual or threatened violation of any of said covenants and if the Corporation prevails in such litigation, then, Executive shall be liable to the Corporation for, and shall pay to the Corporation, all costs and expenses of any kind, including reasonable attorneys' fees, which the Corporation may incur in connection with such proceedings.

-9- Initial ____

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement of the parties hereto with respect to the matters set forth herein and no amendment or modification hereof shall be valid or binding unless made in writing and signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. Any notice, required, permitted or desired to be given pursuant to any of the provisions of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered in person or sent by certified mail, return receipt requested, postage and fees prepaid as follows:

if to the Corporation at:

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attn: Brandon Kou

and, if to Executive:

Micah Anderson

2752 Carriagedale Row

La Jolla, CA 92037

Either of the parties hereto may at any time and from time to time change the address to which notice shall be sent hereunder by notice to the other party given as provided herein. The date of the giving of any notice hereunder shall be the date delivered or if sent by mail, shall be the date of the posting of the mail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Non-Assignability</u>. Neither this Agreement nor the right to receive any payments hereunder may be assigned by Executive except as may be permitted by the laws of decent or distribution in the event of Executive's death or disability. This Agreement shall be binding upon Executive and inure to the benefit of his heirs, executors and administrators and be binding upon the Corporation and inure to the benefit of its successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Choice of Law And Forum</u>. This Agreement shall be governed, interpreted and construed under the laws of the State of California without regard to its conflict of law principles. The parties agree that any dispute or litigation arising in whole or in part hereunder shall only be litigated in any state or Federal court of competent subject matter jurisdiction sitting in San Diego County, California, to the jurisdiction of which and venue in which each party irrevocably consents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Waiver</u>. No course of dealing nor any delay on the part of any party in exercising any rights hereunder shall operate as a waiver of any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver or a waiver of any other breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Severability</u>. If any provision of this Agreement, including any paragraph, sentence, clause or part thereof, shall be deemed contrary to law or invalid or unenforceable in any respect by a court of competent jurisdiction, the remaining provisions of such paragraph, sentence, clause or part thereof shall not be affected, but shall, subject to the discretion of such court, remain in full force and effect and any invalid and unenforceable provisions shall be deemed, without further action on the part of the parties hereto, modified, amended and limited to the extent necessary to render the same valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in counterparts (by physical or electronic means, including DocuSign), each of which shall be deemed an original and together shall constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Survival at Termination</u>. The termination of this Agreement or Executive's employment hereunder shall not affect either party's obligations under this Agreement which by the nature thereof are intended to survive any such termination including, without limitation, Executive's obligations under <u>Sections 8</u>, <u>9</u> and <u>10</u>.

**[Signature Page to Follow]**

-10- Initial ____

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed effective as of the date first above set forth.

---

| |
|:---|
| CORPORATION: |
| ICANIC BRANDS COMPANY INC. |
| By: |
| Name: |
| Title: |
| EXECUTIVE: |
| Micah Anderson |

---

-11- Initial ____

<u>**Attachment A**</u>

● 33 Holdings

● Anderson Dev SB

● ADSB Management

● Anderson Dev Holdings SJ

● Anderson Development SJ

● Anderson Development Willits

● Little Ry Holding

● Lower Thomas Road

● LTR Realty

● MPA Farms, Inc

● MPA Legacy Holdings Inc

● Sunset Ridge Road

● Orr Springs Road

● Orr Springs Land Road

● Chula Vista 2

● Willowbrook Realestate

● Willits Retail

-12- Initial ____

**<u>EXHIBIT C</u>**

**LOCK-UP AGREEMENT**

(attached hereto)

**LOCK-UP LETTER AGREEMENT**

Icanic Brands Company Inc. 789 West Pender Street, Suite 810 Vancouver, BC V6C 1H2 [●], 2022

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) **[FOR MARK ADD]: any obligations of the undersigned under the Conditional Purchase Agreement dated as of the date hereof among Leef, Micah Anderson, as the representative of the shareholders of Leef, Mark Smith and Kamaldeep Thindal the ("Conditional Purchase Agreement")],** (B) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (C) securities sold to satisfy tax obligations on the exercise of any convertible securities; (D) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (E) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (D) and (E) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

**[FOR MARK ADD]:** For greater certainty, nothing in this Lock-Up Agreement shall restrict the undersigned from performing or satisfying his obligations under the Conditional Purchase Agreement.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

 

DATED and effective as of the date set forth above. [Corporate Shareholder]

By:   <br> Name: <br> Title:

[Individual Shareholder]

    <br> Signature of Witness Signing Party Name

**Appendix**

**A Lock-Up Period**

**The Lock-Up Period is as follows:**

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**<u>EXHIBIT D</u>**

**LEGENDING OF PAYMENT SHARES**

&nbsp;&nbsp;&nbsp;&nbsp;i. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares
 until 12 months following Closing;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares
 until 15 months following Closing;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares
 until 18 months following Closing;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares
 until 21 months following Closing;

&nbsp;&nbsp;&nbsp;&nbsp;v. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares
 until 24 months following Closing;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares
 until 27 months following Closing;

&nbsp;&nbsp;&nbsp;&nbsp;vii. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares
 until 30 months following Closing; and

&nbsp;&nbsp;&nbsp;&nbsp;viii. 12.5%
 of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares
 until 33 months following Closing.

**<u>APPENDIX I</u>**

**EARN-OUT EXAMPLE**

<u>**EXHIBIT B**</u>

**Form of Conditional Purchase Agreement**

**(attached hereto)**

EXHIBIT B-1

**<u>Execution Copy</u>**

**CONDITIONAL PURCHASE AGREEMENT**

This Conditional Purchase Agreement (this "**Agreement**") is dated as of January 21, 2022 among Leef Holdings, Inc. ("**Leef**"), Micah Anderson (the "**Leef Representative**"), Mark Smith ("**Smith**"), Kamaldeep Thindal ("**Kam**") and Jagdish Thindal ("**Jagdish**") (Smith, Kam and Jagdish, collectively, the "**Grantors**" and each a "**Grantor**").

**WHEREAS** Leef and Icanic Brands Inc. (the "**Corporation**") are proposing to enter into a merger agreement (the "**Merger Agreement**") to combine their respective businesses by way of a three- cornered amalgamation pursuant to the laws of Nevada (the "**Transaction**").

**WHEREAS** the Grantors have agreed to sell the Option Shares (as defined herein) if the Conditions (as defined herein) are not satisfied following the closing of the Transaction, and no later than the Outside Date (as defined herein).

**NOW THEREFORE** in consideration of the foregoing premises, which are an integral part hereof, and in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

**1.** **DEFINITIONS**.

For purposes of this Agreement:

(a) "**Additional Board Appointment Condition**" means, following or concurrently with the appointment
 of the Leef Nominees to the Board, the appointment of the Additional Nominee to the Board;

(b) "**Additional Nominee**" means, in addition to the Leef Nominees, such other nominee to the Board
 to be determined by the Board; provided that if the Additional Nominee is appointed concurrently
 with the appointment of the Leef Nominees, the Additional Nominee shall be mutually agreed
 upon by the Board and the Leef Nominees.

(c) "**Aggregate Exercise Price**" has the meaning given to such term in Section 3(a);

(d) "**Board** "
 means the board of directors of the Corporation as constituted from time to time, and includes,
 for greater certainty, the board of directors of the Corporation following the consummation
 of the Transaction;

(e) "**Board Appointment Condition**" means the appointment of the Leef Nominees to the Board;

(f) "**Conditions** "
 means, collectively, the Financing Condition, the Board Appointment Condition, the Additional
 Board Appointment Condition and the Management Appointment Condition.

(g) "**Corporation Shares**" means the common shares in the capital of the Corporation;

(h) "**CSE** "
 has the meaning given to such term in the Recitals;

(i) "**Debt Security**" means any bond, debenture, note or other evidence of indebtedness of
 any kind, nature or description whatsoever;

(j) "**Effective Date**" has the meaning given to such term in Section 2(a);

(k) "**Equity Securities**" means the Corporation Shares and any other security of the Corporation
 that carries a residual right to participate in the earnings of the Corporation and, on liquidation
 or winding up of the Corporation, in its assets;

(l) "**Escrow Agent**" has the meaning given to such term in Section 6(a);

(m) "**Escrow Arrangements**" has the meaning given to such term in Section 6(a);

(n) "**Escrow Delivery Date**" has the meaning given to such term in Section 6(a);

(o) "**Financing** "
 means a private placement financing of at least $5,000,000 of Equity Securities at a price
 per Equity Security to be determined by the Board at the time of announcing the Financing,
 to be completed, in one tranche or multiple tranches, on or before the Financing Outside
 Date; provided that the Financing shall not be approved by the Board or publicly announced
 prior to the appointment of the Leef Nominees to the Board.

(p) "**Financing Outside Date**" has the meaning given to such term in Section 3(a)(i);

(q) "**Leef Nominees**" means two nominees to be selected by the Leef Representative or his successors
 or assigns in his sole and absolute discretion, such nominees expected, as of the date hereof,
 to be: (i) Micah Anderson, and (ii) such other individual as the Leef Representative may
 determine in his sole discretion;

(r) "**Market Capitalization**" means the number of issued and outstanding Corporation Shares as
 of the close of business on the date that such calculation is performed, multiplied by the
 closing price of the Corporation Shares on such date;

(s) "**Merger Agreement**" has the meaning given to such term in the Recitals;

(t) "**Management Appointment Condition**" means (i) the appointment of Micah Anderson as Co-CEO of
 the Corporation, and (ii) the appointment of Emily Heitman to an executive position with
 the Corporation to be determined;

(u) "**New Securities**" means any Equity Securities, Debt Securities or Share Rights which
 are issued by the Corporation for any reason;

(v) "**Option** "
 has the meaning given to such term in Section 3(a);

(w) "**Option Shares**" means 25,000,000 Corporation Shares;

(x) "**Outside Date**" means 90 days following the date of closing of the Transaction;

(y) "**Share Rights**" means warrants, stock options, exchangeable or convertible securities,
 subscriptions or other like rights to purchase or otherwise acquire Equity Securities;

(z) "**Transaction** "
 has the meaning given to such term in the Recitals; and

(aa) "**Triggering Event**" means, as applicable, the occurrence of any of the following: (i) the Financing having not been completed by the Financing
 Outside Date; (ii) the Board Appointment Condition having not been satisfied by the Outside Date; (iii) the Additional Board Appointment
 Condition having not been satisfied by the Outside Date; (iv) the Management Appointment Condition having not been satisfied by the
 Outside Date; or (v) any issuance of New Securities before the Board Appointment Condition is satisfied, other than New Securities
 issued in connection with the Transaction, the Financing or upon the exercise of any convertible securities of the Corporation outstanding
 on the date hereof.

**2.** **EFFECTIVE DATE** 

(a) Notwithstanding
 anything to the contrary contained herein, this Agreement shall only take effect and become
 binding upon the parties upon such date, and at such time, that the Transaction is consummated
 (the "**Effective Date** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **CONDITIONS AND OPTION GRANT** 

(a) For
 consideration received, the Grantors hereby irrevocably grant the Leef Representative, for,
 and on behalf of the Leef shareholders, the right, but not the obligation (the "**Option** "),
 exercisable to acquire all of the Option Shares from the Grantors for $1.00 (the "**Aggregate Exercise Price** "), upon the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Financing having not been completed by the date that is 6 months following the completion
 of the Transaction (the "**Financing Outside Date** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 Board Appointment Condition having not been satisfied by the Outside Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the
 Additional Board Appointment Condition having not been satisfied by the Outside Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the
 Management Appointment Condition having not been satisfied by the Outside Date.

(b) The
 Leef Representative shall be entitled to exercise the Option in his sole and absolute discretion
 at any time following the occurrence of a Triggering Event. The Leef Representative may exercise
 the Option in whole, but not in part, by delivery of written notice to the Grantors and the
 Escrow Agent (as defined below) along with payment to Smith, on behalf of the Grantors, the
 Aggregate Exercise Price. Upon receipt of such notice and the Aggregate Exercise Price by
 Smith, the Grantors shall immediately execute any and all documents required by the Escrow
 Agent in order to cause the Option Shares to be transferred and delivered to the Leef Representative.
 For greater certainty, the parties acknowledge that following a Triggering Event, the Option
 shall remain in effect and be capable of being exercised in perpetuity.

(c) For
 greater certainty, the Grantors acknowledge and agree that the Option may be exercised if
 any Condition is not satisfied by the applicable outside date set forth in Section 3(a),
 irrespective of whether any of the other Conditions remain capable of being satisfied as
 of such date.

**4. ADDITIONAL ACKNOWLEDGMENTS OF THE GRANTORS – BOARD APPOINTMENT CONDITION**

(a) The
 Grantors acknowledge that it is in the intention of the Corporation and Leef that following
 the implementation of the Board Appointment Condition and the Additional Board Appointment
 Condition set forth in Section 3, above, the Board of the Corporation will be comprised of
 five individuals as follows: (i) two nominees of the Corporation, (ii) the Leef Nominees,
 and (iii) the Additional Nominee. The Grantors agree to use all best efforts to cause the
 Corporation to, except with the prior written consent of the Leef Representative, maintain
 the size of the Board at five directors, and not appoint any additional nominees to the Board
 until such time that the Board Appointment Condition and Additional Board Appointment Condition
 are satisfied or this Agreement is otherwise terminated in accordance with its terms. If
 necessary, the Grantor agrees to use its best efforts to cause the Corporation to obtain
 such resignations as may be necessary from the current directors of the Corporation to ensure
 that the Board is constituted as contemplated under this Section 4(a) upon the appointment
 of the Leef Nominees and Additional Nominee to the Board.

(b) Notwithstanding
 anything to the contrary contained herein, the Grantors expressly acknowledge and agree that
 if any additional nominees are appointed to the Board without the consent of the Leef Representative
 before the appointment of the Leef Nominees and the Additional Nominee to the Board, the
 Board Appointment Condition shall be deemed incapable of being satisfied, and a Triggering
 Event shall be deemed to have occurred.

(c) For
 greater certainty, the Grantors acknowledge and agree that if the Board Appointment Condition
 is not satisfied for whatever reason (including the shareholders of the Corporation failing
 to elect the Leef Nominees to the Board), the Option shall remain in effect and be capable
 of being exercised by the Leef Representative in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **FINANCING AND NEW EQUITY ISSUANCES** 

(a) The
 Grantors acknowledge and agree that if the Corporation is unable to raise aggregate gross
 proceeds of at least $5,000,000 under the Financing, the Grantors (including any affiliates
 of the Grantors) shall be required to make up any shortfall out of their own funds, or, if
 applicable, fund the entire amount of the Financing if the Corporation is unable to locate
 any subscribers for the Financing. Notwithstanding the foregoing, if the Corporation is unable
 to complete the Financing from third-party investors or otherwise and the Grantors fail to
 backstop the Financing in accordance with this Section 5(a) by the Financing Outside Date,
 the Leef Representative shall be entitled to exercise the Option in accordance with the terms
 of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **ESCROW** 

(a) On
 the Effective Date (the "**Escrow Delivery Date** "), the Grantors shall deliver
 to National Securities Administrators Ltd or such other escrow agent as agreed upon by the
 parties (the "**Escrow Agent**") all of the Option Shares, to be held in escrow
 by the Escrow Agent until such time as the Leef Representative exercises the Option or consents
 to terminate this Agreement (the "**Escrow Arrangements** "). On or prior to
 the Escrow Delivery Date, the Grantors shall immediately execute any and all documents required
 by the Escrow Agent in order to hold the Option Shares in escrow pursuant to the terms of
 this Agreement, including, without limitation, the Escrow Agreement appended hereto as Schedule
 "A".

(b) Until
 the date the earlier of the date when the Leef Representative exercises the Option and the
 date that the Merger Agreement is terminated in accordance with its terms, the Grantors hereby
 agree that they shall not sell, transfer, assign, give, bequeath, hypothecate, pledge, create
 a security interest in, or lien on, encumber, place in trust (voting or other), or otherwise
 dispose of all or any portion of their respective interest in the Option Shares, or enter
 into any agreement to do any of the foregoing. In the event that this Agreement is terminated,
 the Escrow Agent shall return the Option Shares to the Grantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **REPRESENTATIONS AND WARRANTIES.** 

Each of the Grantors, on his or her own behalf and not on the behalf of any other Grantor, hereby severally (and, for greater certainty, not jointly with any other Grantor) represents and warrants to the Leef Representative that, as of the Effective Date and at all times until the earlier of the Leef Representative's exercise of the Option or the date the Leef Representative consents to the termination of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Smith
 will be the registered and beneficial owner of 12,317,270 Corporation Shares that will be
 issued to Smith pursuant to his executive employment agreement immediately prior to the closing
 of the Transaction, free and clear of any mortgage, pledge, lien, charge, security interest,
 claim or other encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Kam
 is the registered owner of 6,211,379 Corporation Shares, free and clear of any mortgage,
 pledge, lien, charge, security interest, claim or other encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Jagdish
 is the registered owner of 6,471,351 Corporation Shares, free and clear of any mortgage,
 pledge, lien, charge, security interest, claim or other encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Each
 Grantor is, or will be, the sole registered and beneficial owner of the Option Shares set
 forth opposite his or her name in Schedule "B" hereto, free and clear of any
 mortgage, pledge, lien, charge, security interest, claim or other encumbrance. Upon exercise
 of the Option, the Leef Representative will acquire the legal and beneficial ownership of
 such Option Shares free and clear of any mortgage, pledge, lien, charge, security interest,
 claim or other encumbrance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) there
 are no voting trusts, proxies or other agreements or understandings in effect with respect
 to the voting, issuance or transfer of any of the Option Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Each
 Grantor has all requisite power and authority to enter into this Agreement and the documents
 to be delivered hereunder, to carry out its obligations hereunder and to consummate the transactions
 contemplated hereby; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the
 execution and delivery by each Grantor of this Agreement and the performance by each Grantor
 of its obligations hereunder does not require the consent of any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **MISCELLANEOUS.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *Obligations Joint and Several.* Any obligations owing to the Leef Representative by the Grantors under
 this Agreement (including, greater certainty, the obligation of the Grantors to sell the
 Option Shares to the Leef Representative upon exercise of the Option in accordance with the
 terms of this Agreement) shall be a joint and several obligation of the Grantors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *Successors and Assigns*. The rights under this Agreement may only be assigned (and only with all
 related obligations) in whole or in part by the Leef Representative. Any assignment by the
 Corporation, any Grantor or Leef may be made only with the prior written consent of the Leef
 Representative. The terms and conditions of this Agreement enure to the benefit of and are
 binding upon the respective successors and permitted assignees of the parties. Nothing in
 this Agreement, express or implied, is intended to confer upon any party other than the parties
 hereto or their respective successors and permitted assignees any rights, remedies, obligations
 or liabilities under or by reason of this Agreement, except as expressly provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *Governing Law*. This Agreement shall be governed by the laws of the Province of British Columbia
 and the federal laws of Canada applicable therein without regard to any conflicts of laws
 provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *Counterparts*.
 This Agreement may be executed in two or more written, facsimile, PDF or other electronically
 delivered counterparts, each of which shall be deemed an original, but all of which together
 shall constitute one and the same instrument.

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) *Notices*.
 Except as otherwise provided in this Agreement or required by law, any notice, demand or
 other communication required or permitted to be given pursuant to this Agreement shall have
 been sufficiently given for all purposes if, upon the earlier of actual receipt, or:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) personal
 delivery to the party to be notified;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) when
 sent, if sent by electronic mail during normal business hours of the recipient, and if not
 sent during normal business hours, then on the recipient's next business day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) five
 days after having been sent by registered or certified mail, return receipt requested, postage
 prepaid; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) one
 business day after deposit with a nationally recognized overnight courier, freight prepaid,
 specifying next business day delivery, with written verification of receipt.

All communications shall be sent to the respective parties at their address as set forth on the signature page or to such address as subsequently modified by written notice given in accordance with this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) *Amendments and Waivers*. Any term of this Agreement may be amended and the observance of any term
 of this Agreement may be waived (either generally or in a particular instance, and either
 retroactively or prospectively) only with the written consent of each of the parties. No
 waivers of or exceptions to any term, condition, or provision of this Agreement, in any one
 or more instances, shall be deemed to be or construed as a further or continuing waiver of
 any such term, condition, or provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) *Severability*.
 In case any one or more of the provisions contained in this Agreement is for any reason held
 to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability
 shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable
 provision shall be reformed and construed so that it will be valid, legal, and enforceable
 to the maximum extent permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Entire Agreement*. This Agreement constitutes the full and entire understanding and agreement
 among the parties with respect to the subject matter hereof, and any other written or oral
 agreement relating to the subject matter hereof existing between the parties is expressly
 canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) *Dispute Resolution*. The parties (i) hereby irrevocably and unconditionally submit to the exclusive
 jurisdiction of the courts in Vancouver, British Columbia for the purpose of any suit, action
 or other proceeding arising out of or based upon this Agreement, (ii) agree not to commence
 any suit, action or other proceeding arising out of or based upon this Agreement except in
 the courts in Vancouver, British Columbia, and (iii) hereby waive, and agree not to assert,
 by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any
 claim that it is not subject personally to the jurisdiction of the above-named courts, that
 its property is exempt or immune from attachment or execution, that the suit, action or proceeding
 is brought in an inconvenient forum, that the venue of the suit, action or proceeding is
 improper or that this Agreement or the subject matter hereof may not be enforced in or by
 such court.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) *Costs and Expenses*. The Corporation shall be responsible for all costs and expenses in connection
 with the transfer of the Option Shares to the Escrow Agent and all fees payable to the Escrow
 Agent in connection with the Escrow Arrangements. Each party will bear its own costs in respect
 of any disputes arising under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) *Delays or Omissions*. No delay or omission to exercise any right, power, or remedy accruing to
 any party under this Agreement, upon any breach or default of any other party under this
 Agreement, shall impair any such right, power, or remedy of such nonbreaching or non-defaulting
 party, nor shall it be construed to be a waiver of or acquiescence to any such breach or
 default, or to any similar breach or default thereafter occurring, nor shall any waiver of
 any single breach or default be deemed a waiver of any other breach or default theretofore
 or thereafter occurring. All remedies, whether under this Agreement or by law or otherwise
 afforded to any party, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) *Currency*.
 All references to dollars or to $ are references to U.S. dollars, unless otherwise specified.
 Canadian Dollar equivalents of U.S. Dollars on any day shall be determined with reference
 to the foreign exchange ratio then in effect as of the end of such trading day, as reported
 on Bank of Canada, and with respect to any period during which a volume weighted average
 is calculated, such volume weighted average shall be calculated by further weighting each
 trading day's activity by the foreign exchange ratio then in effect as of the end of
 such trading day, as reported on Bank of Canada.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF** the parties have executed this Agreement as of the date first written above.

**LEEF HOLDINGS, INC.**

By:   <br> Name:   <br> Title  

---

| |
|:---|
| **MICAH ANDERSON** |
| **MARK SMITH** |
| **KAMALDEEP THINDAL** |
| **JAGDISH THINDAL** |

---

**SCHEDULE A**

**Escrow Agreement**

(see attached)

**SCHEDULE B**

**Grantor and Option Shares**

---

| | | | | |
|:---|:---|:---|:---|:---|
| <br>**Grantor** | **Number and Description of Option Shares** | **Number and Description of Option Shares** | <br>**Share Certificate Number** | <br>**Share Certificate Number** |
| Mark Smith |  | 12317270 |  | N/A |
| Kamaldeep Thindal |  | 6211379 |  | ICAN.1001107 |
| Jagdish Thindal |  | 6471351 |  | ICAN.1001106 |

---

<u>**EXHIBIT C**</u>

**Form of Escrow Agreement**

**(attached hereto)**

EXHIBIT C-1<br>

**ESCROW AGREEMENT**

**THIS AGREEMENT** is made as of the __________________day of January, 2022,

**AMONG:**

**LEEF HOLDINGS INC.**, a corporation existing under the laws of the State of Nevada

("**Leef**")

- and –

**MICAH ANDERSON**, an individual resident in the State of California, in his capacity as representative of the shareholders of Leef

("**Leef Representative**")

- and –

**MARK SMITH**, an individual resident in the State of Colorado

("**Smith**")

- and –

**RAJINDER GREWAL**, an individual resident in the Province of British Columbia

("**Grewal**" and together with Smith, the "**Grantors**")

- and –

**NATIONAL SECURITIES ADMINISTRATORS LTD.,** a trust company incorporated under the laws of the Province of British Columbia,

(the "**Escrow Agent**" and together with Leef, the Leef Representative and the Grantors, the "**Parties**").

**RECITALS**:

A. Leef and Icanic Brands Company Inc. ()"**Icanic**") entered into a merger agreement (the "**Merger Agreement**") dated January [●], 2022 to combine their respective businesses by way of a three-cornered amalgamation pursuant to the laws of Nevada (the "**Transaction** ").

B. Concurrently with the execution of the Merger Agreement, Leef, the Leef Representative and the Grantors entered into a conditional purchase agreement dated January [●], 2022 (the "**Conditional Purchase Agreement** "), appended as Schedule "A" hereto, pursuant to which the Leef Representative, for and on behalf of the shareholders of Leef (the "**Leef Shareholders**") acquired an option (the "**Option**") to purchase 25,000,100 common shares of Icanic held by the Grantors (the "**Escrow Shares**") if certain conditions are not satisfied by a certain specified date following the completion of the Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Pursuant
 to the terms of the Conditional Purchase Agreement, the Grantors have agreed, among other
 things, to place all of the Escrowed Shares in escrow with the Escrow Agent, to be released
 in accordance with the terms and conditions herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The
 parties have requested that the Escrow Agent act as escrow agent in connection with the escrow
 of the Escrowed Shares and in accordance with the terms of this Agreement.

**NOW THEREFORE** in consideration of the premises and mutual representations, warranties, covenants and agreements hereinafter set forth and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereby agree as follows:

**1.** **Appointment of Escrow Agent** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Leef,
 the Leef Representative and the Grantors hereby appoint the Escrow Agent to act as the escrow
 agent in accordance with the terms and conditions of this Agreement, and the Escrow Agent
 hereby agrees to act in accordance with the terms and conditions of this Agreement. For the
 purposes of this Agreement, all references herein to "Escrow Agent" will mean
 National Securities Administrators Ltd. acting in the capacity of escrow agent hereunder
 or any other person that replaces National Securities Administrators Ltd. as escrow agent
 hereunder pursuant to the provisions hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Grantors shall pay the Escrow Agent fees as laid out in Schedule A, plus expenses reasonably
 incurred in connection with this Agreement, for acting as escrow agent (the "**Escrow Fees** ").

**2.** **Deposit of Escrowed Shares** 

The Grantors agrees with the Leef Representative that the Escrowed Shares will be delivered directly to the Escrow Agent to be deposited into escrow and released in accordance with the terms of this Escrow Agreement. The Escrow Agent will accept the Escrowed Shares upon their delivery and will hold the Escrowed Shares and administer the Escrowed Shares in accordance with the provisions of this Agreement. In addition, the Grantors will deliver to the Escrow Agent, concurrent with the execution hereof, an executed and undated stock transfer power of attorney in blank for the Escrowed Shares.

Upon any consolidation, amalgamation, arrangement, merger, redemption, compulsory acquisition or similar transaction of or involving the Escrowed Shares, or a sale or conveyance of all or substantially all the assets of Icanic to any other body corporate, trust, partnership or other entity (each, a "**Change of Control**"), other than the Transaction, the Escrow Agent shall receive and thereafter hold the consideration (the "**Replacement Consideration**") payable to holders of common shares in the capital of Icanic ("**Icanic Shares**"), including the Escrowed Shares. The Escrow Agent will accept the Replacement Consideration and will hold and administer the Replacement Consideration in accordance with the provisions of this Agreement on the same terms, *mutatis mutandis*, as the Escrowed Shares. Any cash that forms part of the Replacement Consideration will be held by the Escrow Agent in a segregated interest-bearing account for the benefit of the Leef Representative. If, in connection with a Change of Control, a holder of Icanic Shares may elect a form of consideration (including, without limitation, shares, other securities, cash or other property) from options made available, then the Escrow Agent will elect to receive an equal percentage of each of the different types of consideration offered, unless otherwise directed in writing by the Leef Representative prior to any applicable election deadline.

In the event that Icanic makes any distribution of cash, shares, other securities or other property (the "**Distributed Property**") to the holders of the Icanic Shares, including the Escrowed Shares, the Escrow Agent shall receive and thereafter hold the Distributed Property in respect of the Escrowed Shares. The Escrow Agent will accept the Distributed Property and will hold and administer the Distributed Property in accordance with the provisions of this Agreement on the same terms, *mutatis mutandis*, as the Escrowed Shares. Any cash that forms part of the Distributed Property will be held by the Escrow Agent in a segregated interest-bearing account for the benefit of the Leef Representative.

**3.** **Escrow Release** 

The Escrow Agent shall not release any Escrowed Shares until it receives written notice (the "**Release Notice**") from the Leef Representative and the Grantors that either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) a
 Triggering Event (as such term is defined in the Conditional Purchase Agreement) has occurred
 and it has made a payment of $1.00 to the Grantors, in which case the Escrow Agent shall
 be authorized to release the Escrowed Shares to the Leef Representative in accordance with
 the Release Notice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) the
 Conditions (as such term is defined in the Conditional Purchase Agreement) have been satisfied,
 in which case the Escrow Agent shall be authorized to release the Escrowed Shares to the
 Grantors in accordance with the Release Notice.

Upon receipt of the Release Notice in the case of Section 3(a), the Escrow Agent shall be entitled to and shall take all steps necessary to re-register and deliver the Escrowed Shares as so directed by the Leef Representative in the Release Notice.

&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Rights of Escrow Agent** 

**4.1** **Escrow Agent Not a Trustee** 

The Escrow Agent accepts duties and responsibilities under this Agreement and the Escrowed Shares and any share certificates or other evidence of these securities, solely as a custodian, bailee and agent. No trust is intended to be, or is or will be, created hereby and the Escrow Agent shall owe no duties hereunder as a trustee.

**4.2** **Escrow Agent Not Responsible for Genuineness** 

The Escrow Agent will not be responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity of any Escrowed Shares deposited with it.

**4.3** **Escrow Agent Not Responsible for Furnished Information** 

The Escrow Agent will have no responsibility for seeking, obtaining, compiling, preparing or determining the accuracy of any information or document, including the representative capacity in which a party purports to act, that the Escrow Agent receives as a condition to a release from escrow or a transfer of the Escrowed Shares within escrow under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4** **Escrow Agent Not Responsible after Release** 

The Escrow Agent will have no responsibility for the Escrowed Shares that it has released in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5** **Additional Provisions** 

(1) The Escrow Agent will be protected in acting and relying reasonably upon any notice, direction, instruction, order, certificate, confirmation, request, waiver, consent, receipt, statutory declaration or other paper or document (collectively referred to as "**Documents**") furnished to it and purportedly signed by any officer or person required to or entitled to execute and deliver to the Escrow Agent any such Document in connection with this Agreement, not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth or accuracy of any information therein contained, which it in good faith believes to be genuine.

(2) The Escrow Agent will not be bound by any notice of a claim or demand with respect thereto, or any waiver, modification, amendment, termination or rescission of this Agreement unless received by it in writing, and signed by the other Parties and, if required, approved by the securities regulators with jurisdiction and, if the duties or indemnification of the Escrow Agent in this Agreement are affected, unless it has given its prior written consent.

(3) The Escrow Agent may consult with or retain such legal counsel and advisors as it may reasonably require for the purpose of discharging its duties or determining its rights under this Agreement and may rely and act upon the advice of such counsel or advisor. The Escrow Agent will give written notice to Leef, the Leef Representative and the Grantors as soon as practicable that it has retained legal counsel or other advisors. Grantors will pay or reimburse the Escrow Agent for any reasonable fees, expenses and disbursements of such counsel or advisors.

(4) In the event of any disagreement arising under the terms of this Agreement, the Escrow Agent will be entitled, at its option, to refuse to comply with any and all demands whatsoever until the dispute is settled either by a written agreement among the Parties or by a court of competent jurisdiction.

(5) The Escrow Agent will have no duties or responsibilities except as expressly provided in this Agreement, including any agreement referred to in this Agreement, to which the Escrow Agent is not a party.

(6) The Escrow Agent will have the right not to act and will not be liable for refusing to act unless it has received clear and reasonable documentation that complies with the terms of this Agreement. Such documentation must not require the exercise of any discretion or independent judgment.

(7) The Escrow Agent is authorized to cancel any share certificate delivered to it and hold the Escrowed Shares in electronic or uncertificated form only, pending release of such securities from escrow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6** **Limitation of Liability of Escrow Agent** 

The Escrow Agent will not be liable to any of the Parties hereunder for any action taken or omitted to be taken by it under or in connection with this Agreement, except for losses directly, principally and immediately caused by its bad faith, willful misconduct or gross negligence. Under no circumstances will the Escrow Agent be liable for any special, indirect, incidental, consequential, exemplary, aggravated or punitive losses or damages hereunder, including any loss of profits, whether foreseeable or unforeseeable. Notwithstanding the foregoing or any other provision of this Agreement, in no event will the collective liability of the Escrow Agent under or in connection with this Agreement to any one or more Parties, except for losses directly caused by its bad faith, willful misconduct or gross negligence, exceed the amount of its annual fees under this Agreement or the amount of $3,000.00, whichever amount shall be greater.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.7** **Remuneration of Escrow Agent** 

The Grantors will pay the Escrow Agent reasonable remuneration for its services under this Agreement, which fees are subject to revision from time to time on 30 days' written notice. The Grantors will reimburse the Escrow Agent for its expenses and disbursements. Any amount due under this section and unpaid 30 days after request for such payment, will bear interest from the expiration of such period at a rate per annum equal to the then current rate charged by the Escrow Agent, payable on demand.

In the event the Grantors fail to pay the Escrow Agent any amounts owing to the Escrow Agent hereunder, the Escrow Agent shall have the right not to act (including the right not to release the Escrowed Shares from escrow) and will not be liable for refusing to act until it has been fully paid all amounts owing to it hereunder. Further, in the event that the Grantors fail to pay the Escrow Agent its reasonable remuneration for its services hereunder, the Escrow Agent shall be entitled to charge Leef or the Leef Representative for any release of Escrowed Shares and shall have the right not to act (including the right not to release the Escrowed Shares) until such amounts have been paid to the Escrow Agent.

In the event that the Grantors have failed to pay the amounts owing the Escrow Agent hereunder, the Escrow Agent shall not be liable for any loss caused by a delay in the release of the Escrowed Shares.

&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Interpleader** 

The Escrow Agent may, in its sole discretion, deliver the Escrowed Shares into court by way of interpleader if any person, whether or not a party hereto, sues or threatens to sue the Escrow Agent in connection with the Escrowed Shares or the actions or omissions of any of the parties hereunder including the Escrow Agent or if the Escrow Agent is unable or unwilling to continue acting and there is no replacement under Section 6 within 30 days after the written notice of resignation in Section 6 or in the event of any disagreement or apparent disagreement between the parties hereto resulting in conflicting claims or demands with respect to the Escrowed Shares or if any of the parties hereto, including the Escrow Agent, are in or appear to be in disagreement about the interpretation of this Agreement or about the rights and obligations of the Escrow Agent or the propriety of an action contemplated by the Escrow Agent under this Agreement. Upon the Escrow Agent making such delivery, the Escrow Agent shall be released from all its duties and obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Resignation of Escrow Agent** 

(1) If the Escrow Agent wishes to resign as escrow agent, the Escrow Agent will give written notice to Leef, the Leef Representative and the Grantors.

(2) If Leef, the Leef Representative and the Grantors wish to terminate the Escrow Agent as escrow agent, Leef, the Leef Representative and the Grantors will give written notice to the Escrow Agent.

(3) If the Escrow Agent resigns or is terminated, the Grantors will be responsible for ensuring that the Escrow Agent is replaced not later than the resignation or termination date by another escrow agent that is acceptable to the securities regulators having jurisdiction in the matter and that has accepted such appointment, which appointment will be binding on Leef, the Leef Representative and the Grantors.

(4) The resignation or termination of the Escrow Agent will be effective, and the Escrow Agent will cease to be bound by this Agreement, on the date that is 60 days after the date of receipt of the notices referred to above or on such other date as the Parties may agree upon (the "**resignation or termination date**"), provided that the resignation or termination date will not be less than 10 business days before a release date.

(5) If the Grantors have not appointed a successor escrow agent within 60 days of the resignation or termination date, the Escrow Agent will apply, at the Grantor's expense, to a court of competent jurisdiction for the appointment of a successor escrow agent and the duties and responsibilities of the Escrow Agent will cease immediately upon such appointment.

(6) On any new appointment under this section, the successor Escrow Agent will be vested with the same powers, rights, duties and obligations as if it had been originally named herein as Escrow Agent, without any further assurance, conveyance, act or deed. The predecessor Escrow Agent, upon receipt of payment for any outstanding account for its services and expenses then unpaid, will transfer, deliver and pay over to the successor Escrow Agent, who will be entitled to receive, all securities, records or other property on deposit with the predecessor Escrow Agent in relation to this Agreement and the predecessor Escrow Agent will thereupon be discharged as Escrow Agent.

(7) If any changes are made to Part 8 of this Agreement as a result of the appointment of the successor Escrow Agent, those changes must not be inconsistent with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Indemnity.** In consideration of the premises and of the Escrow Agent agreeing to act hereunder, Leef,
 the Leef Representative and Grantors agree to save, defend and keep harmless and fully indemnify
 the Escrow Agent, its partners, associates, employees and agents, and their respective heirs,
 executors, administrators, successors and assigns, from and against all losses, costs, liabilities,
 charges, suits, demands, claims, damages (including consequential damages) and expenses of
 any nature which the Escrow Agent, its successors or assigns, may at any time hereafter bear,
 sustain, suffer or be put to for or by any reason of or on account of its acting as escrow
 agent or anything in any matter relating thereto or by reason of the Escrow Agent's
 compliance with the terms hereof. Notwithstanding any other provision of this Agreement,
 the Escrow Agent's liability shall be limited, in the aggregate, to the amount of fees
 paid by the Grantors to the Escrow Agent under this Agreement, provided that the foregoing
 shall not apply to any liability arising from the Escrow Agent's bad faith, fraud,
 wilful misconduct or gross negligence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Not Obliged to Defend.** Without restricting the foregoing indemnity, if proceedings are taken
 by arbitration or in any court respecting the Escrowed Shares, the Escrow Agent shall not
 be obliged to defend or otherwise participate in any such proceedings until it shall have
 such security as the Escrow Agent determines, in its sole discretion, to be adequate for
 its costs in such proceedings in addition to the indemnity set out above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Survival**.
 The provisions of Section 7(a) and Section 7(b) will survive the resignation or removal of
 the Escrow Agent or the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Not to Expend Own Funds.** None of the provisions contained in this Agreement shall require
 the Escrow Agent to expend or to risk its own funds or otherwise to incur financial liability
 in the performance of any of its duties or in the exercise of any of its rights or powers
 unless funded and indemnified as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Expenses** 

The Escrow Agent shall be entitled to be reimbursed for all documented expenses reasonably incurred in connection with acting hereunder, including without limitation, legal fees paid by the Escrow Agent in respect of this Agreement, such expenses and fees to be borne by the Grantors. The provisions of this Section 8 will survive the resignation or removal of the Escrow Agent or the termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**9.** **General** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notices.** Any notice, certificate, consent, determination or other communication required or permitted
 to be given or made under this Agreement shall be in writing and shall be effectively given
 and made if (i) delivered personally, (ii) sent by prepaid courier service or mail, or (iii)
 sent by email, or other similar means of electronic communication, in each case to the applicable
 address set out below:

If to Leef:

Leef Holdings, Inc.

5580 La Jolla Boulevard #395

La Jolla, CA 92037

Attention: Micah Anderson <br> Email: micah@leefca.com

If to the Leef Representative:

[●]

Email: micah@leefca.com

If to Smith:

1187 Gore Trail

Cordillera, Colorado 81632

United States

Email: austinenergygroup@gmail.com

If to Grewal:

[●]

Email: [●]

If to the Escrow Agent:

National Securities Administrators Ltd.

702 – 777 Hornby Street

Vancouver, BC V6Z 1S4

Attention: Securities Processing <br> Email: admin@endeavortrust.com

Any such communication so given or made shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of emailing or sending by other means of recorded electronic communication, provided that such day in either event is a business day (at the place of receipt) and the communication is so delivered, emailed, or sent prior to 4:30pm (at the place of receipt) on such day. Otherwise, such communication shall be deemed to have been given and made and to have been received on the next following business day. Any such communication sent by mail shall be deemed to have been given and made and to have been received on the fifth business day following the mailing thereof; provided however that no such communication shall be mailed during any actual or apprehended disruption of postal services. Any such communication given or made in any other manner shall be deemed to have been given or made and to have been received only upon actual receipt.

Any party may from time to time change its address under this Section 9(a) by notice to the other parties given in the manner provided by this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Time of Essence.** Time shall be of the essence of this Agreement in all respects.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Further Assurances.** Each party shall promptly do, execute, deliver, or cause to be done, executed
 and delivered all further acts, documents and things in connection with this Agreement that
 another party may reasonably require for the purposes of giving effect to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Successors and Assigns.** This Agreement shall enure to the benefit of, and be binding on, the parties
 and their respective successors and permitted assigns. No party may assign or transfer, whether
 absolutely, by way of security or otherwise, all or any part of its respective rights or
 obligations under this Agreement without the prior consent of the other parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Amendment**.
 No amendment of this Agreement will be effective unless made in writing and signed by all
 of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Entire Agreement**. This Agreement constitutes the entire agreement between the parties pertaining
 to the subject matter of this Agreement and supersedes all prior agreements, understandings,
 negotiations and discussions, whether oral or written. There are no conditions, warranties,
 representations or other agreements between the parties in connection with the subject matter
 of this Agreement (whether oral or written, express or implied, statutory or otherwise) except
 as specifically set out in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Waiver.** A waiver of any default, breach, or non-compliance under this Agreement is not effective
 unless in writing and signed by the parties to be bound by the waiver. No waiver shall be
 inferred from or implied by any failure to act or delay in acting by a party in respect of
 any default, breach or non-observance or by anything done or omitted to be done by another
 party. The waiver by a party of any default, breach, or non-compliance under this Agreement
 shall not operate as a waiver of that party's rights under this Agreement in respect
 of any continuing or subsequent default, breach or non-observance (whether of the same or
 any other nature).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Severability.** Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
 shall, as to that jurisdiction, be ineffective to the extent of such prohibition or unenforceability
 and shall be severed from the balance of this Agreement, all without affecting the remaining
 provisions of this Agreement or affecting the validity or enforceability of such provision
 in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Governing Law**. This Agreement shall be governed by and construed in accordance with the laws of
 the Province of British Columbia and the laws of Canada applicable in that Province and shall
 be treated, in all respects, as an British Columbia contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Counterparts.** This Agreement may be executed by the parties in separate counterparts (by original or
 facsimile signature) each of which when so executed and delivered shall be deemed to be an
 original, and all such counterparts shall together be construed as one and the same document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Termination.** This Agreement may be terminated at any time by and upon the receipt of the Escrow Agent
 of a written notice of termination executed by Leef, the Leef Representative and the Grantors,
 directing the release of the Escrowed Shares to the Grantors and such termination will be
 effective immediately after compliance by the Escrow Agent with such direction. This Agreement
 shall automatically terminate if and when all of the Escrowed Shares shall have been distributed
 by the Escrow Agent in accordance with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Privacy** 

The parties acknowledge that federal and/or provincial legislation that addresses the protection of individuals' personal information (collectively, "**Privacy Laws**") applies to certain obligations and activities under this Agreement. Notwithstanding any other provision of this Agreement, neither party shall take or direct any action that would contravene, or cause the other to contravene, applicable Privacy Laws. Leef, the Leef Representative and the Grantors shall, prior to transferring or causing to be transferred personal information to the Escrow Agent, obtain and retain required consents of the relevant individuals to the collection, use and disclosure of their personal information, or shall have determined that such consents either have previously been given upon which the parties can rely or are not required under the Privacy Laws. The Escrow Agent shall use commercially-reasonable efforts to ensure that its services hereunder comply with Privacy Laws. Specifically, the Escrow Agent agrees: (i) to have a designated chief privacy officer; (ii) to maintain policies and procedures to protect personal information and to receive and respond to any privacy complaint or inquiry; (iii) to use personal information solely for the purposes of providing its services under or ancillary to this Agreement and to comply with applicable laws and not to use it for any other purpose except with the consent of or direction from Leef, the Leef Representative and the Grantors or the individual involved or as permitted by Privacy Laws; (iv) not to sell or otherwise improperly disclose personal information to any third party; and (v) to employ administrative, physical and technological safeguards to reasonably secure and protect personal information against loss, theft, or unauthorized access, use or modification.

&nbsp;&nbsp;&nbsp;&nbsp;**11.** **Right Not to Act** 

The Escrow Agent shall retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the Escrow Agent, in its sole judgment, acting reasonably, determines that such act might cause it to be in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline. Further, should the Escrow Agent, in its sole judgment, acting reasonably, determine at any time that its acting under this Agreement has resulted in its being in non-compliance with any applicable anti- money laundering or anti-terrorist legislation, regulation or guideline, then it shall have the right to resign on 10 days prior written notice sent to all parties hereby provided that: (i) the Escrow Agent's written notice shall describe the circumstances of such non-compliance; and (ii) that if such circumstances are rectified to the Escrow Agent's satisfaction within such 10 day period, then such resignation shall not be effective.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written.

**LEEF HOLDINGS, INC.**

Per:   <br> Authorized Signatory

**NATIONAL SECURITIES ADMINISTRATORS LTD.**

---

| | |
|:---|:---|
| Per: | |
|  | Authorized Signatory |
| Per: | |
|  | Authorized Signatory |

---

---

| |
|:---|
| **MICAH ANDERSON** |
| **MARK SMITH** |
| **RAJINDER GREWAL** |

---

**EXTENSION AGREEMENT**

**THIS EXTENSION AGREEMENT** (the **"Agreement")** is made as of the <u>15</u> day of the March, 2022 (the **"Effective Date")**

**BETWEEN:**

**ICANIC BRANDS COMPANY INC.,** a corporation incorporated pursuant to the laws of the Province of British Columbia

(hereinafter referred to as **·Icanic")**

-and-

**LEEF HOLDINGS, INC.,** a company existing under the laws of the State of Nevada (hereinafter referred to as **"Leer)**

-and-

**lCANIC MERGER SUB, INC.,** a company existing under the laws of the State of Nevada (hereinafter referred to as **"Subco")**

-and-

**MICAH ANDERSON,** solely in his capacity as representative of the Company Stockholders

(hereinafter referred to as the **"Stockholders Representative")**

**RECITALS:**

A. WHEREAS
 lcanic, Leef, Subco and the Stockholders Representative entered into a Merger Agreement dated
 January 21, 2022 with respect to the acquisition of all issued and outstanding shares of
 common stock of Leef by lcanic (the **·Merger Agreement");** 

B. AND
 WHEREAS Section 10.1(d) of the Merger Agreement provides that lcanic and Leef have the right
 to terminate the Merger Agreement if the Effective Time (as defined in the Merger Agreement)
 has not occurred on or before 5:00 p.m. (Vancouver time) on March 22, 2022 (the **"Outside Date");** 

C. AND
 WHEREAS the Parties (as defined in the Merger Agreement) have mutually agreed to extend the
 Outside Date by 30 days to April 21, 2022.

**NOW THEREFORE,** in consideration of the above premises, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agrees as follows:

1. **Defined Terms.** Except as otherwise expressly provided in this Agreement, the capitalized terms
 used herein shall have the meaning attributed to them in the Merger Agreement.

2. **Extension of Outside Date.** The Parties hereby extend the Outside Date by 30 days until April 21,
 2022 at 5:00 p.m. (Vancouver time).

3. **Governing Law.** This Agreement shall be governed in accordance with the laws of the Province of
 British Columbia and the federal laws of Canada applicable therein.

4. **Agreement Binding.** This Agreement shall be binding upon, extend to and enure to the benefit of
 the Parties and each of their respective successors and assigns.

5. **Effect of the Agreement.** Except as expressly modified by this Agreement, the terms, covenants,
 and conditions of the Merger Agreement, shall remain unchanged and in full force and effect.
 For greater certainty, the termination rights and conditions set out in Section 10.1 of the
 Merger Agreement shall remain in full force and effect, except as expressly modified by this
 Agreement.

6. **Counterparts.** This Agreement may be signed in any number of counterparts, each of which is an original,
 and all of which taken together constitute one single document. Counterparts may be transmitted
 in electronically scanned form. Parties transmitting electronically shall also deliver the
 original counterpart to each other party, but failure to do so does not invalidate this Agreement.

***[Signature Page to Follow]***

 ****

 ****

**IN WITNESS WHEREOF,** the parties have executed this Extension Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **ICANIC BRANDS COMPANY INC.** | **ICANIC BRANDS COMPANY INC.** |
| By: | */s/ Brandon Kou* |
| Name: | Brandon Kou |
| Title: | CEO |

---

---

| | |
|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: | ![](pg251-300_002.jpg) |
| Name: |  |
| Title: |  |

---

---

| |
|:---|
| **ICANIC MERGER SUB, INC.** |
| By: |
| Name: |
| Title: |

---

---

| | |
|:---|:---|
| **MICAH ANDERSON** (solely in his capacity as the Stockholders Representative) | **MICAH ANDERSON** (solely in his capacity as the Stockholders Representative) |
| By: | ![](pg251-300_002.jpg) |

---

**IN WITNESS WHEREOF**, the parties have executed this Extension Agreement as of the Effective Date.

---

| | |
|:---|:---|
| **ICANIC BRANDS COMPANY INC.** | **ICANIC BRANDS COMPANY INC.** |
| By: | */s/ Brandon Kou* |
| Name: | Brandon Kou |
| Title: | CEO |

---

---

| |
|:---|
| **LEEF HOLDINGS, INC.** |
| By: |
| Name: |
| Title: |

---

---

| | |
|:---|:---|
| **ICANIC MERGER SUB, INC.** | **ICANIC MERGER SUB, INC.** |
| By: | */s/ Suhas Patel* |
| Name: | Suhas Patel |
| Title: | Director |

---

---

| |
|:---|
| **MICAH ANDERSON** (solely in his capacity as the Stockholders Representative) |
| By: |

---

**Icanic Brands Company, Inc.**

Suite 810, 789 West Pender Street

Vancouver, British Columbia, Canada V6C 1H2

**Icanic Brands Announces Definitive Agreement to Acquire 100% of LEEF Holdings, California's Premier Extraction Company**

VANCOUVER, BRITISH COLUMBIA – January 25<sup>th</sup>, 2022– Icanic Brands Company, Inc. (CSE: ICAN, OTCQB: ICNAF) ("**Icanic Brands**" or the "**Company**"), a multi-state brand operator of premium Cannabis brands in California and Nevada, is pleased to announce that the Company has entered into a definitive agreement (the "**Agreement**") with LEEF Holdings, Inc. ("**LEEF**"), a California based extractions company (the "**Acquisition**").

LEEF is one of the largest cannabis extraction companies in the state of California and is a leading provider of bulk concentrates to many of the largest brands in the state. It is led by an expert group of legacy operators with decades of experience in organic soil-based farming and sophisticated extraction practices. LEEF's manufacturing capabilities include a 12,000 sq.ft state of the art extraction and manufacturing facility with up to 45 tons of biomass throughput per month and up to 3,000 liters of distillate extraction capability per month. Headquartered in Willits, California, LEEF's core manufacturing competencies include ethanol extraction (Type 6 manufacturing license), hydrocarbon extraction (Type 7 manufacturing license), and solventless extraction. LEEF also has an edibles production line and is in the process of building out a 45,000 sq.ft mid-stream processing facility which will allow it to dry its own product and provide additional services including processing, distribution and delivery to its customers. LEEF also recently received a 186.7 acre cultivation land use permit, which will make it the owner of one of the largest cannabis cultivation sites in California. The site sits on over 1,900 acres of prime California real estate.

Since inception, LEEF has experienced significant year over year growth with strong and consistent gross margins and positive cash flow. From 2019 to the end of 2021, LEEF experienced revenue growth exceeding 100%. With the build out of the cultivation site, LEEF will be able to provide consistency, quality and quantity to its customers and its' margins are expected to increase substantially as it gains vertical efficiencies with its in-house supply chain.

In addition to its extraction and distribution capabilities, LEEF owns and operates the LEEF Organics, Heady, and Paleo Paw brands and currently operates and has an option to purchase the highly sought after Real Deal Resin brand. These brands will add to Icanic's current brand portfolio which currently includes its award winning GanjaGold and Taylor's brands. It is expected that LEEF's expertise in manufacturing and supply chain management will allow for significant operating synergies on a go forward basis including reduced input costs and enhanced manufacturing efficiencies.

**Management Commentary**

"Today represents a huge milestone for Icanic. Our ability to come together as one with an amazing company like LEEF will only further enhance our position in the market. Micah and the rest of the team have done an amazing job building one of the leaders in the California market and we couldn't be prouder to call them our partners" said Brandon Kou, CEO of Icanic Brands. "This marriage will allow us to accomplish our collective goals quicker and I am proud to say that the combined teams have already been hard at work analyzing the synergies and identifying efficiencies allowing us to build towards a singular infrastructure."

Micah Anderson, CEO of LEEF commented, "I am incredibly excited to be taking LEEF into the next stage of its development and together with our new partners at Icanic. We look forward to continuing to build significant shareholder value for many years to come. It's because of the relentless hard work of LEEF's employees that we have found ourselves at what I believe is the starting point to the next chapter. I have been in the cannabis industry for many years and, along with the other founding partners of LEEF, have devoted our entire lives to building our company. Winning is the result of having the right people working together with the right vision and Icanic's management team only strengthens the talents and relationships LEEF brings to the table. I look forward to working with the Icanic team to add tremendous value to the combined organization as it continues to expand and grow in the coming years."

**Terms of the Merger Agreement**

Under the terms of the Agreement, the Company will acquire all the issued and outstanding shares of common stock of LEEF whereby LEEF will complete a statutory triangular merger under the *Nevada Revised Statutes* with a wholly-owned subsidiary of the Company. The purchase price (the "**Purchase Price**") will be comprised of (i) the Closing Purchase Price (as defined below) and (ii) earn-out payments, tied to achieving certain revenue targets following the completion of the Acquisition.

The initial payment forming part of the Purchase Price (the "**Closing Purchase Price**") will be equal to the higher of (i) US$120,000,000 or (i) two times the trailing 12-months revenue of LEEF for the period ended September 30, 2021. The Closing Purchase Price will be satisfied in full through the issuance of common shares of the Company (the "**Icanic Shares**"), at an issue price per share equal to the 30-day volume-weighted average trading price of the Icanic Shares on the Canadian Securities Exchange (the "**CSE**") for the period ending on the business day prior to closing.

The Acquisition is anticipated to be completed during Q1 2022 and is subject to customary closing conditions, regulatory approvals and the approval of LEEF shareholders.

**Financial and Legal Advisors**

McMillan LLP is acting as legal counsel to Icanic Brands. Bayline Capital Partners is acting as financial advisor and Cassels Brock & Blackwell LLP and Jackson Tidus is acting as legal counsel to LEEF.

**About Icanic Brands Company, Inc.**

Icanic Brands Company, Inc. is a leading cannabis branded products manufacturer based in California & Nevada, the largest and most competitive cannabis markets in the world. The company's mission is to make cannabis safe and approachable - that starts with manufacturing high-quality products delivering consistent experiences.

For more information, please visit the company's website at: <u>www.icaninc.com.</u>

**ICANIC BRANDS COMPANY INC.**

Per: "Brandon Kou" <br> *Chief Executive Officer*

 

**For further information about Icanic Brands, please contact the Company at:**

Email: <u>ir@icaninc.com</u>

**The CSE does not accept responsibility for the adequacy or accuracy of this release.**

**The Canadian Securities Exchange has not in any way passed upon the merits of the Acquisition and has neither approved nor disapproved the contents of this press release.**

 

**Disclaimer for Forward Looking Statements**

**This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws (collectively, "forward-looking information"). Forward-looking information are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information in this news release includes, without limitation, statements relating to the completion of the Acquisition, the growth of the California consumer segment of the California cannabis market, the anticipated benefits associated with the completion of the Acquisition, the receipt of all requisite approvals to complete the Acquisition, the closing date of the Acquisition, the Company's goals following closing of the Acquisition and the Company's business and strategic plans. Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to the ability of the Company to execute its business plan, the continued growth of the medical and/or recreational cannabis markets in the countries in which the Company operates or intends to operate and LEEF maintaining its existing cannabis licenses. The Company considers these assumptions to be reasonable in the circumstances. However, forward- looking information is subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those expressed or implied in the forward-looking information. Such risks include, without limitation: the failure to obtain all necessary approvals related to the Acquisition, the ability of the Company to complete the Acquisition in a timely manner or at all; the ability of the Company to integrate the LEEF business into its existing operations and to realize the expected benefits and synergies of the acquisition; unexpected disruptions to the operations and businesses of the Company and/or LEEF as a result of the COVID-19 global pandemic or other disease outbreaks including a resurgence in the cases of COVID-19; engaging in activities considered illegal under United States federal law; the ability of the Company to comply with applicable government regulations in a highly regulated industry; unexpected changes in governmental policies and regulations affecting the production, distribution, manufacture or use of cannabis in the United States, or any other foreign jurisdictions in which the Company intends to operate; unexpected changes in governmental policies and regulations affecting the production, distribution, manufacture or use of adult-use recreational cannabis in the United States or Canada; any change in accounting practices or treatment affecting the consolidation of financial results; any unexpected failure of LEEF to renew its licenses and permits; any unexpected failure of LEEF to maintain any of its commercial facilities; the Company's reliance on management; inconsistent public opinion and perception regarding the use of cannabis; perceived effects of medical cannabis products; adverse market conditions; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; costs of inputs; crop failures; litigation; currency fluctuations; competition; availability of capital and financing on acceptable terms; industry consolidation; loss of key management and/or employees; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. For more information on the Company and the risks and challenges of their businesses, investors should review their filings that are available at www.sedar.com.**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **SHAREHOLDERS LIST**<br>**Name** | <br>**Email** | <br>**Shares Owned** | <br>**Certificated** | <br>**Address** | <br>**Country** | **Exchange Ratio**<br>**12.54755221** | <br>**Icanic Shares** |
| Little Ry Holdings | micah@leefca.com | 6303500 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 79093495 |
| The EH Trust | emily@leefca.com | 4937762 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 61956826 |
| MPA Legacy Holdings, Inc | debi@mpafarms.com | 3780719 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 47438769 |
| Plantlife, LLC | brett@leefca.com | 3442500 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 43194948 |
| Roots Origin, LLC | kelly@leefca.com | 3442500 | Yes | 4350 EXECUTIVE DR., #320SAN DIEGO, CA 92121 | US |  | 43194948 |
| Spagyrics, LLC | gary@leefca.com | 3442500 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 43194948 |
| TJM Holdings, Inc | tim.mulcahy@owenergy.com | 2000000 | Yes | 2 Bloor St W, Suite 2700, Toronto, ON M4W 3E2 | Canada |  | 25095104 |
| Air G, LLC | rudy27gobert@gmail.com | 3545454 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 44486769 |
| JAKFT, LLC | jimmybutlerthethird@gmail.com | 3545454 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 44486769 |
| The Marley Trust DTD 10/18/2013 | bigame33@yahoo.com | 1090909 | Yes | 3021 McGraw Street, San Diego CA 92117 | US |  | 13688237 |
| Ian Mahinmi | ianou76@gmail.com | 1000000 | Yes | 302 Pleasant Knoll, San Antonio TX 78260 | US |  | 12547552 |
| Parnitha Capital Corp. | cdpower94@gmail.com | 16893 | Yes | 839 Heritage Blvd, North Vancouver, BC V7J 3G8 | Canada |  | 211965 |
| IFLY Ventures, LLC | bryonwcm@gmail.com | 925000 | Yes | 12110 Business Blvd, Suite 6 #241 Eagle River, AK 99577 | US |  | 11606485 |
| Lyndsey Roach | lyndsey@boxcreativeagency.com | 710296 | Yes | 149 W AVENIDA CORNELIASAN CLEMENTE, CA 92672 | US |  | 8912476 |
| Joan Dale Hubbard, Tamara Groat and Edward Alan | Burgeeburger@hubbardenterprise.com | 500000 | No | PO Box 2498, Ruidoso NM 88355 | US |  | 6273776 |
| R.D. and Joan Dale Hubbard Foundation | eburger@hubbardenterprise.com | 500000 | Yes | PO Box 2498, Ruidoso NM 88355 | US |  | 6273776 |
| Doug Benson | bensonmdoug@gmail.com | 400000 | Yes | PO Box 2050 Amarillo, TX 79105 | US |  | 5019020 |
| Stonegate Ventures, LLC | smcgrath@stonegatellc.com | 300000 | Yes | 83 Speen Street, Natick MA 01760 | US |  | 3764265 |
| Will Kuss | wkuss@paofw.com | 291667 | Yes | 16 BELLINGHAMSHIRE PL NEW HOPE, PA 18938 | US |  | 3659706 |
| Dillon DuPont | dillondupont@gmail.com | 280000 | Yes | 730 Great Highway #1 San Francisco CA 94121 | US |  | 3513314 |
| Elliot DuPont | cocodereaux@gmail.com | 280000 | Yes | PO Box 100, Teton Village, WY 83025 (USPS), 3820 McCollister Drive, Teton Village WY 83025 (FedEx) | US |  | 3513314 |
| Jackson DuPont | jackson.dupont@gmail.com | 280000 | Yes | 730 Great Highway #1 San Francisco CA 94121 | US |  | 3513314 |
| Charles E duPont Jr. | buzz@charlesdupont.com | 439784 | Yes | PO Box 100, Teton Village, WY 83025 (USPS), 3820 McCollister Drive, Teton Village WY 83025 (FedEx) | US |  | 5518206 |
| Sean Daneshmand | seandaneshmandmd@gmail.com | 250000 | Yes | 501 W Broadway Suite 510, San Diego, CA 92101 | US |  | 3136888 |
| Hymel Family Trust | thymel@Volcom.com | 200000 | Yes | 1831 Park Skyline, Santa Ana, CA 92705 | US |  | 2509510 |
| JOHN FIELDING | johnfielding@arraymarketing.com | 189003 | Yes | 45 Progress Avenue Toronto Ontario M1P2Y6 | Canada |  | 2371525 |
| 37 CFS Holdings, LLC | <u>37cfsholdings@gmail.com or omarpalmieri@gmail.c</u> | 185000 | Yes | c/o Proskauer, 2255 Glades Road, Suite 421A, Boca Raton, FL 33431-7360 | US |  | 2321297 |
| Kristina Bates | kristinabates88@gmail.com | 181746 | Yes | 88 Blythwood Road, Toronto, ON M4N 1A4 | Canada |  | 2280467 |
| Richard Borkum | rborkum@btadvisor.com | 86096 | Yes | 3021 MCGRAW STREET SAN DIEGO, CA 92117 | US |  | 1080294 |
| Rosebud Ireland | emeraldheartfarms@gmail.com | 141752 | Yes | 84-b State ST. Willits, CA 95490 | US |  | 1778640 |
| Dream Box Capital Corp. | cdpower94@gmail.com | 103952 | No | 839 Heritage Blvd, North Vancouver, BC V7J 3G8 | Canada |  | 1304343 |
| Tina Ziainia | tinaz077@yahoo.com | 100000 | Yes | PO Box 5000, Pinb 166, Rancho Santa Fe, CA 92067 | US |  | 1254755 |
| Rosenthal Living Trust June 1989 | murray@hyperion-research.com | 100000 | Yes | 3860 GS Richards Blvd, Carson City, NV 89703 | US |  | 1254755 |
| AP & Sons Residential Holdings | borna123@gmail.com | 100000 | Yes | 4901 - 1480 Howe Street, Vancouver, BC V6Z0G5 | Canada |  | 1254755 |
| Elvio Del Sorbo | edelsorbo@rogers.com | 204229 | Yes | 25 Pheasant Lane, Toronto ON M9A 1T3 | Canada |  | 2562577 |
| Matteo Del Sorbo | matteolucadelsorbo@gmail.com | 194501 | Yes | No street address. Toronto ON M4V 1H4 | Canada |  | 2440511 |
| Michael Doner | mjdoner@gmail.com | 144501 | Yes | 5 St Ives Crescent, Toronto ON M4N 3B2 | Canada |  | 1813133 |
| Naveen Modi | naveenmodi@paulhastings.com | 94501 | Yes | 7614 McWeadon Lane, Springfield, VA 22150 | US |  | 1185756 |
| Matthew Weinstein and Adriana Urtasun | adriana.urtasun@gmail.com | 90873 | Yes | 36 Balmoral ave, Toronto, ON M4V 1J4 | Canada |  | 1140233 |
| Bryant Park Capital | jake.magerman@bryantparkcapital.com | 90000 | Yes | 489 Fifth Avenue, 16th Floor, New York, NY 10017 | US |  | 1129279 |
| The Robbins Family Trust | BRobbins@robbinsarroyo.com | 75000 | Yes | PO Box 675753, Rancho Santa Fe, CA 92067 | US |  | 941066 |
| Jon Cobb | jon@blancocc.com | 75000 | Yes | 4813 Twin Acres, Bee Cave TX, 78738 | US |  | 941066 |
| STEPHEN ANDERSON | sanderson@hoopp.com | 70876 | Yes | 2 Crofton Road, Toronto, ON M4G 2B4 | Canada |  | 889320 |
| Charles Dillion DuPont | dillondupont@gmail.com | 66151 | Yes | 730 Great Highway #1 San Francisco CA 94121 | US |  | 830033 |
| 2103319 Alberta Inc. | keithbao@gmail.com | 56701 | Yes | 2030-10013 River Drive, Richmond BC V6X 1Z2 | Canada |  | 711458 |
| William Joseph Reilly, Jr | rgrouse8@icloud.com | 50000 | Yes | 100 Memorial Drive, 11-6A, Cambridge MA 02142 | US |  | 627377 |
| Michael Reilly Trust | michaeljpreilly@yahoo.com | 54790 | Yes | 121 Chrystie Street 3B, NY NY 10002 | US |  | 687480 |
| Josh Rubinstein | josh@dmtc.com | 50000 | Yes | 1414 Torrance St, San Diego, CA 92103 | US |  | 627377 |
| Justin White, Trustee of the Crow Omon Trust | justin@opus.attorney | 50000 | Yes | 662 Encinitas Blvd, Suite 248, Encinitas CA 92024 | US |  | 627377 |
| Kenneth E. Lowe, Jr. |  | 50000 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 627377 |
| Alan K Webb | alankwebb@gmail.com | 47251 | Yes | 26347 Thosand Oaks Blvd, Apt 182, Calabasas CA 91302 | US |  | 592884 |
| Sharad Agrawal | sharadmd@hotmail.com | 47251 | Yes | 7602 McWeadon Lane, Springfield VA 22150 | US |  | 592884 |
| Stephen F. Bierman | stevebierman00@gmail.com | 85130 | Yes | 143 8th Street, Del Mar CA 92014 | US |  | 1068170 |
| Keith Ky Fu Bao | keithbao@gmail.com | 37801 | Yes | 170-422 Richards Street, Vancouver BC V6B 2Z4 | Canada |  | 474310 |
| Michael J. Bollus | mbollus@bolluslynch.com | 37801 | Yes | 25 Summerland Way, Worcester MA 01609 | US |  | 474310 |
| William Reilly Trust | rryles25@gmail.com | 37212 | Yes | 599 River Street, Norwell MA 02061 | US |  | 466924 |
| 2695797 Ontario, Inc. |  | 30000 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 376426 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **SHAREHOLDERS LIST**<br>**Name** | <br>**Email** | <br>**Shares Owned** | <br>**Certificated** | <br>**Address** | <br>**Country** | **Exchange Ratio**<br>**12.54755221** | <br>**Icanic Shares** |
| SCOTT JAMES STEWART & JUDITH ANN BATES | scotfree@telus.net | 27262 | Yes | 6120 Mackenzie St. Vancouver BC V6N 1H5 | Canada |  | 342071 |
| Homevation, LLC | jhasson@obscc.com | 25000 | Yes | 5013 Gerald Ave, Encino, CA 91436 | US |  | 313688 |
| James Patrick Riha | patriha@live.com | 40500 | Yes | 7935 El Paseo Grande, La Jolla, CA 92037 | US |  | 508175 |
| MICHAEL HALVORSON | halvorson@shaw.ca | 22718 | Yes | 7928 Rowland Rd NW, Edmonton AB T6A 3W1 | Canada |  | 285055 |
| 361 WIN Holdings, LLC. | DanP@thayerstreet.com | 20000 | No | c/o Harrigman Miller Schwartz and Cohn LLP 660 Woodword Avenue,2290 First National Building, Detroit, | US |  | 250951 |
| Captivate Ventures, LLC | captivateventures@gmail.com | 20000 | Yes | 425 E 79th St Apt 12G, NY NY 10075 | US |  | 250951 |
| Stephen A Lynch | slynch@bolluslynch.com | 18900 | Yes | 96 Pilgrim Drive, Holden MA 01520 | US |  | 237148 |
| SALEEM TYAB | styab@cgf.com | 18175 | Yes | 332 Stevens Dr, West Vancouver, BC V7S 1C6 | Canada |  | 228051 |
| RAGHBIR BOWAL | info@rickbowal.com | 15448 | Yes | 11471 Bird Road, Richmoond, BC. V6X 1N7 | Canada |  | 193834 |
| SIMON JACOBSON | sjacobson41@shaw.ca | 9087 | Yes | 6611 Adera Street, Vancouver BC v6p5b9 | Canada |  | 114019 |
| SEENA SABOR | seenasabor@gmail.com | 9087 | Yes | 733 18th street east, North Vancouver, V7L 2Y7 | Canada |  | 114019 |
| BEHROOZ AKHONDZADA | styab@cgf.com | 4544 | Yes | #44-616 Lonsdale Ave, North Vancouver BC V7M 2G8 | Canada |  | 57016 |
| The James Money Penny Revocable Trust | bigame33@yahoo.com | 86097 | Yes | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 1080306 |
| Lisa Chiang | lisa.esq@gmail.com | 217048 | Yes | 3123 Stone Oak Dr, Los Angeles, CA 90049 | US |  | 2723416 |
| John Viera | johndvieira@hotmail.com | 2560 | Yes | 1910 Berkley Ave, North Vancouver BC V7H 1Z5 | Canada |  | 32115 |
| Kim Steinhausen | k22stein@shaw.ca | 25595 | Yes | 601-995 Roche Point Dr, North Vancouver BC V7H 2X4 | Canada |  | 321157 |
| Salman Jamal | asj@syndicatedcc.com | 12798 | Yes | 211 - 1275 Hamilton Street, Vancouver, BC V6B 1E2 | Canada |  | 160578 |
| Hanifmohamed Hirji | hanifhirji@engelsbakeriesltd.ca | 5119 | Yes | 317 Valour Dr., Port Moody BC V3H 1R5 | Canada |  | 64231 |
| Asmina Hirji | hhirji@shaw.ca | 5119 | Yes | 317 Valour Dr., Port Moody BC V3H 1R5 | Canada |  | 64231 |
| Hunter Nixon Scharfe | hscharfe@raddcapital.com | 5119 | Yes | 1522 Atlas Lane, Vancouver BC V6P 0E1 | Canada |  | 64231 |
| Scott Paterson | spaterson@patersonpartners.com | 12798 | Yes | 300-110 Spadina Ave, Toronto ON M5V 2K4 | Canada |  | 160578 |
| Justin Kates | jkates@dumoulinblack.com | 1280 | Yes | 595 Howe St. 10th Floor, Vancouver, BC V6C 2T5 | Canada |  | 16057 |
| Luca Leone | luca@naturogroup.com | 8958 | Yes | 6387 Churchill Street, Vancouver BC V6M 3H8 | Canada |  | 112405 |
| Marcello Leone | mleone@shaw.ca | 10238 | Yes | 6387 Churchill Street, Vancouver BC V6M 3H8 | Canada |  | 128463 |
| Sonja Ciarniello | sonja.ciarniello@gmail.com | 3839 | Yes | 4849 Selkirk St. Vancouver BC V6H 3A2 | Canada |  | 48173 |
| Keavney MacDonald | kmacdonald@delanocapital.ca | 2560 | Yes | 205-218 Close Ave, Toronto ON M6K 2V5 | Canada |  | 32115 |
| Jared Behr | behr.jared@gmail.com | 2560 | Yes | 401-1178 Hamilton Street, Vancouver BC V6B 2S2 | Canada |  | 32115 |
| Shivreet Singh Deol | sdeol@horizoncpa.ca | 2560 | Yes | 2341 Upland Drive, Vancouver BC V5S 2B4 | Canada |  | 32115 |
| Samantha Barretto | samibarretto@gmail.com | 5119 | Yes | 206-545 N Hayworth Ave, Los Angeles CA, 90048 | US |  | 64231 |
| Arthur Kononuk | askononuk@gmail.com | 28155 | Yes | 612-719 3rd St W, North Vancouver BC V7M 0E7 | Canada |  | 353273 |
| Conor Power | Conordpower@gmail.com | 8410 | Yes | 839 Heritage Blvd, North Vancouver BC V7J 3G6 | Canada |  | 105524 |
| Petkovic Holdings Ltd | luka95@gmail.com | 13891 | Yes | 882 Tobruck Ave, North Vancouver, BC V7P 3M5 | Canada |  | 174298 |
| Pacific Reach Properties Capital Ltd | Ajamal@pacificreach.com | 155619 | Yes | 1818-701 West Georgia St, Vancouver, BC V7Y 1K9 | Canada |  | 1952637 |
| Leslie Graham | lipstickfx@gmail.com | 5119 | Yes | 714-1641 Lonsdale Ave, North Vancouver,BC V7M 2J5 | Canada |  | 64231 |
| Christopher Sainas | chris_sainas@dakeryn.com | 10238 | Yes | 3151 Del Rio Dr, North Vancouver BC V7N 4C3 | Canada |  | 128463 |
| Connor Yuen | connoryuen@conquestvc.com | 7679 | No | 4906-1480 Howe Street, Vancouver BC V6Z 0G5 | Canada |  | 96347 |
| Gregory Terrasson | naskko26@gmail.com | 10238 | Yes | 4559 Brentlawn Dr, Burnaby BC V5C 3T9 | Canada |  | 128463 |
| Tyler Kepkay | tyler.kepkay@gmail.com | 30714 | Yes | 606 Palisade Dr, North Vancouver BC V7R 2J1 | Canada |  | 385386 |
| Armin Mizani | armin.mizani@gmail.com | 10238 | Yes | 1365 Honeysuckle Lane, Coquitlam BC V3E 2P1 | Canada |  | 128463 |
| Jacqueline Rey | chccapital@gmail.com | 7679 | Yes | 2690 Mathers Ave, West Vancouver BC V7V 2J4 | Canada |  | 96347 |
| Pao-Lian Chen | sam.allen.elaine@gmail.com | 5119 | No | 883 62nd Ave W, Vancouver BC V6P 2E3 | Canada |  | 64231 |
| Himesh Hewawasam | himeshhewawasam@gmail.com | 10238 | Yes | 40-5950 Oakdale Rd, Burnaby BC V5H 4R5 | Canada |  | 128463 |
| Allen Black | kblack@researchcapital.com | 5119 | Yes | 1920-1075 Georgia St W, Vancouver BC V6E 3C9 | Canada |  | 64231 |
| Matthew Cameron | mattcam11@icloud.com | 5119 | No | 1227-1205 Howe St, Vancouver, BC V6B 0Z1 | Canada |  | 64231 |
| Bryant Hsiao | brhsiao@hotmail.com | 5119 | Yes | 6016 Chancellor Blvd, Vancouver BC V6T 1E7 | Canada |  | 64231 |
| Roberto Brogin | rbrogin@gmail.com | 7679 | Yes | 3115 Capilano Cres, North Vancouver BC V7R 4X5 | Canada |  | 96347 |
| Scott Barker | scott@gtmfund.com | 8446 | Yes | 45 East Cordova, Unit 45, Vancouver, BC, Canada, V6A1K3 | Canada |  | 105981 |
| Marko Andric | andricm@gmail.com | 9871 | Yes | 33 Pond Ave, Apt 710, Brookline, MA, 02445 | US |  | 123851 |
| Dusko Novakovic | dusko_novakovic@outlook.com | 10238 | Yes | 3903 Pender St, Burnaby BC V5C 2L7 | Canada |  | 128463 |
| Kosi Stobbs | kosi.stobbs@gmail.com | 40952 | Yes | 6708 193 A st, Surrey, BC V4N 0B8 | Canada |  | 513849 |
| Conor Power (Penny Hatzimanolakis) | Conordpower@gmail.com | 10238 | Yes | 839 Heritage Blvd, North Vancouver BC V7J 3G6 | Canada |  | 128463 |
| Conor Power (Jeffrey Greenberg) | Conordpower@gmail.com | 404728 | Yes | 839 Heritage Blvd, North Vancouver BC V7J 3G6 | Canada |  | 5078341 |
| Richard Watt | richard@projectfirst.ca | 4300 | Yes | 312 Princess St, New Westminster BC V3L 1V5 | Canada |  | 53954 |
| Dustin Leuenberger | malune56@gmail.com | 14410 | Yes | 45-6823 Tucelnuit Dr, Oliver BC V0H 1T2 | Canada |  | 180811 |
| Emily Rakhit | emily.rakhit@gmail.com | 3468 | Yes | 2205 Chairlift Road, West Vancouver, BC, CA, V7S2T4 | Canada |  | 43510 |
| Cole Bjerke | colebjerke@gmail.com | 3402 | Yes | 46585 Andrews Ave, Chilliwack BC V2P 2H9 | Canada |  | 42681 |
| Chad Buchanan | cj.futura@gmail.com | 39683 | Yes | 802 Indiana Ave, Venice, CA 90291 | US |  | 497918 |
| Chase Buchanan | chasebuchanan@icloud.com | 19841 | Yes | 8100 Dunaway Lane, Westerville, OH, 43082 | US |  | 248959 |
| Luvdeep Randhawa | james.randhawa@iompropertygroup.com | 51190 | Yes | 401-15336 31 Ave, Surrey BC V3Z 0X2 | Canada |  | 642315 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **SHAREHOLDERS LIST**<br>**Name** | <br>**Email** | <br>**Shares Owned** | <br>**Certificated** | <br>**Address** | <br>**Country** | **Exchange Ratio**<br>**12.54755221** | <br>**Icanic Shares** |
| Conor Power | Conordpower@gmail.com | 5481 | Yes | 839 Heritage Blvd, North Vancouver BC V7J 3G6 | Canada |  | 68773 |
| Dr. David V. Bridger Inc. | drbridger@telus.net | 60437 | Yes | Suite 1001, 2128 West 43rd. Ave., Vancouver, BC, V6M 2E1 | Canada |  | 758336 |
| Steffan Anderson | steffenandersen46@gmail.com | 18000 | No | 4874 Drakewood Terrace, San Diego, CA 92130 | US |  | 225855 |
| Houston Grant | jeramiGrant39@protonmail.com | 757576 | No | 42 Sand Bar LnDetroit, MI 48214United States | US |  | 9505721 |
| Ed Burger | eburger@hubbardenterprise.com | 378788 | No | PO Box 2498, Ruidoso, NM 88355 | US |  | 4752860 |
| Jacintha Donor | mjdoner@gmail.com | 32000 | No | 5 St Ives Crescent, Toronto, ON M4N 3B3 | Canada |  | 401521 |
| Kyle J Jakobe | kylejakobe@gmail.com | 56818 | No | 17743 N 101st Way, Scottsdale, AZ, 85255 | US |  | 712929 |
| Davis Bertans | Bertans44@gmail.com | 378788 | No | 4929 Sherier PL NW Washington, DC 20016 | US |  | 4752860 |
| Ken Kavanagh | kjkceo@yahoo.com | 610303 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 7657808 |
| Janice Dicks | janice.dicks@yahoo.ca | 68182 | No | 56 Mary Chapman Blvd. Toronto Ontario, M9M 0B2 | Canada |  | 855517 |
| Colton Tempelton | colton@leefca.com | 22727 | No | 1552 Galveston St. San Diego, CA 92110 | US |  | 285168 |
| Gary Vandenburge | gary@leefca.com | 1000 | No | 8895 Main St. #300 Willits, CA 95490 | US |  | 12547 |
| Haleigh Roach | haleigh@leefca.com | 2000 | No | 6443 Caminto Formby, La Jolla, CA 92037 | US |  | 25095 |
| Debi Thomas | debi@mpafarms.com | 5000000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 62737761 |
| Kevin Wilson | kwilson2944@gmail.com | 2000 | No | 56 Mary Chapman Blvd. Toronto Ontario, M9M 0B2 | Canada |  | 25095 |
| RTCMA Holdings Inc. | tim.mulcahy@owenergy.com | 1000000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 12547552 |
| MRAA Inc. | moe@razidesign.com | 1000000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 12547552 |
| Treasure Island Management Ltd. | dave@jokadainc.com | 600000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 7528531 |
| Toroverde Inc. | rob@rpccapital.ca | 400000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 5019020 |
| Patrica Del Sorbo | p_schaper@yahoo.com | 250000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 3136888 |
| 689643 Ontario Inc. | dannys@allseas.net | 300000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 3764265 |
| Brian Marsellus | brian.marsellus@owenergy.com | 100000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 1254755 |
| DBSA Consulting Inc. | david.e.balaban@gmail.com | 100000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 1254755 |
| Aiden Holdings Inc. | jfox@ninepoint.com | 400000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 5019020 |
| Obaji Medical Management Inc. | jobaji@rogers.com | 50000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 627377 |
| Jacintha Doner | jacdoner@gmail.com | 50000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 627377 |
| David Shpilt | david@dsandfitz.com | 150000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 1882132 |
| Canaccord Genuity Corp. IN TRUST FOR DEREK HAM Ac | garden@cgf.com | 50000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 627377 |
| Canaccord Genuity Corp. IN TRUST FOR STEVEN WINO | garden@cgf.com | 50000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 627377 |
| Mark Arnstein | mark@markarnstein.com | 35000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 439164 |
| Canaccord Genuity Corp. IN TRUST FOR PETER BECK A | peter.beck@cannacord.com | 30000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 376426 |
| Giuseppina Marzario | pina.marzario@rogers.com | 25000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 313688 |
| Canaccord Genuity Corp. IN TRUST FOR MATTHEW SHA | mshadbolt@cgf.com | 25000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 313688 |
| Valerian Corp. | lgreenberg@starwoodgroup.com | 15000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 188213 |
| 6938141 Canada Inc. | david.huliyappa@owenergy.com | 100000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 1254755 |
| Brandon Infante | brandon.infante@owenergy.com | 12400 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 155589 |
| Margaret Mulcahy | reidpeg@outlook.com | 35000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 439164 |
| Jechijo SRL | emanuele.busnelli@jechijo.com | 1000000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 12547552 |
| Haywood Securities Inc. in trust for 4357376 Capital Corp | robjhalpern@gmail.com | 50000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 627377 |
| Aaron Unger | aunger@baylinecapitalpartners.com | 382627 | No | 707 Briar Hill Ave, Toronto, ON, M6B 1L5 | Canada |  | 4801032 |
| Alan Friedman | aunger@baylinecapitalpartners.com | 382627 | No | 707 Briar Hill Ave, Toronto, ON, M6B 1L5 | Canada |  | 4801032 |
| Ethan Spence | aunger@baylinecapitalpartners.com | 25000 | No | 707 Briar Hill Ave, Toronto, ON, M6B 1L5 | Canada |  | 313688 |
| Jacob Goulette | debi@mpafarms.com | 1000 | No | 5666 La Jolla Blvd #270 La Jolla, CA 92037 | US |  | 12547 |
| **Total Shares Issued and Outstanding** |  | **60432034** |  |  |  |  | **758274035** |

---

**Trading Restrictions (Applies to all shares)**

---

| |
|:---|
| 12.5% of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 12 months following Closing; |
| 12.5% of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 15 months following Closing; |
| 12.5% of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 18 months following Closing; |
| 12.5% of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 21 months following Closing; |
| 12.5% of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 24 months following Closing; |
| 12.5% of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 27 months following Closing; |
| 12.5% of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 30 months following Closing; |
| 12.5% of the Payment Shares shall contain a legend prohibiting the transfer of the Payment Shares until 33 months following Closing. |

---

![](pg301-351_005.jpg)

![](pg301-351_006.jpg)

![](pg301-351_007.jpg)

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**CONFIDENTIAL INFORMATION STATEMENT**

**LEEF HOLDINGS INC.**

**a Nevada corporation January 27, 2022**

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | **Page** |
| INTRODUCTION | 3 |
| FORWARD-LOOKING STATEMENTS | 5 |
| THE WRITTEN CONSENT | 5 |
| Purpose | 5 |
| Written Consents | 5 |
| Record Date for Determination of Stockholders Entitled to Vote; Votes Required | 5 |
| Consent Procedure | 6 |
| Recommendation of the Company Board | 6 |
| Interests of the Company Board | 6 |
| Dissenter's Rights | 6 |
| MERGER PROPOSAL | 7 |
| The Companies | 7 |
| The Parent | 7 |
| Merger Sub | 7 |
| The Company | 7 |
| Background | 8 |
| Reasons for the Merger | 8 |
| The Merger Agreement | 9 |
| Merger Consideration | 9 |
| Earnout Payment | 9 |
| Treatment of Convertible Debt | 10 |
| Financial Advisory Fees | 10 |
| Stockholder Representative | 11 |
| Stockholder Approval | 11 |
| Indemnification Provisions | 11 |
| Exchange Procedure for Common Stock | 12 |
| Regulatory Matters | 12 |
| Representations and Warranties | 12 |
| Covenants Relating to the Company's Conduct of Business | 13 |
| Covenants Relating to the Company's Conduct of Business | 13 |
| Additional Covenants | 14 |
| Expenses | 14 |
| Conditions to the Merger | 14 |
| Termination and Amendment of the Merger Agreement | 14 |
| CERTAIN MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES | 15 |
| CERTAIN CANADIAN INCOME TAX CONSIDERATIONS | 17 |
| RISK FACTORS | 19 |
| OTHER ANCILLARY AGREEMENTS | 21 |
| RESTRICTIONS ON TRANSFER OF PURCHASER COMMON SHARES | 22 |
| DISSENTER'S RIGHTS | 23 |
| INTERESTS OF THE COMPANY BOARD AND MANAGEMENT | 25 |

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|:---|:---|
| EXHIBIT A – | MERGER AGREEMENT (Disclosure Letter and Exhibits Not Included) |
| EXHIBIT B – | STOCKHOLDERS' WRITTEN CONSENT (Approval of Merger and Related Transactions) |
| EXHIBIT C – | ACCREDITED INVESTOR CERTIFICATION |
| EXHIBIT D – | NEVADA LAW REGARDING DISSENTER RIGHTS EXHIBIT E – FORM OF DEMAND |

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ii

THIS INFORMATION STATEMENT IS CONFIDENTIAL AND MAY NOT BE DISTRIBUTED TO ANY PERSON OTHER THAN LEEF HOLDINGS, INC. ("**LEEF**") STOCKHOLDERS (AND THEIR RESPECTIVE LEGAL, TAX AND ACCOUNTING ADVISORS) TO WHOM LEEF DIRECTLY PROVIDED THIS INFORMATION STATEMENT. **THE INFORMATION CONTAINED IN THIS INFORMATION STATEMENT IS BEING PROVIDED TO THE STOCKHOLDERS OF LEEF FOR THE PURPOSE OF DISCLOSING RELEVANT INFORMATION ABOUT THE PROPOSED MERGER. THE INFORMATION CONTAINED IN THIS INFORMATION STATEMENT IS NOT TO BE USED FOR ANY OTHER PURPOSE OR RELEASED TO ANY OTHER PERSON (OTHER THAN THE STOCKHOLDERS' RESPECTIVE LEGAL, TAX AND ACCOUNTING ADVISORS) WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF LEEF.**

THIS INFORMATION STATEMENT IS BEING FURNISHED TO THE STOCKHOLDERS OF LEEF IN CONNECTION WITH THE SOLICITATION OF THE WRITTEN CONSENT OF STOCKHOLDERS OF LEEF BY AND ON BEHALF OF THE BOARD OF DIRECTORS OF LEEF (THE "**COMPANY BOARD**"). THE STOCKHOLDER WRITTEN CONSENT IS ENCLOSED FOR EACH STOCKHOLDER'S USE AS **<u>EXHIBIT B</u>**. THIS INFORMATION STATEMENT AND THE ACCOMPANYING WRITTEN CONSENTS ARE BEING DISTRIBUTED TO LEEF STOCKHOLDERS ON OR ABOUT JANUARY 27, 2022.

THE STOCKHOLDER CONSENT SOLICITED HEREBY WILL BECOME EFFECTIVE UPON RECEIPT BY LEEF OF PROPERLY EXECUTED WRITTEN CONSENTS REPRESENTING THE NUMBER OF SHARES REQUIRED FOR APPROVAL OF THE MATTERS DISCUSSED HEREIN WITH REGARD TO THE PROPOSAL TO APPROVE THE MERGER AGREEMENT (AS DEFINED BELOW) AND THE TRANSACTIONS CONTEMPLATED THEREBY. PLEASE REFER TO THE INFORMATION UNDER THE CAPTION "RECORD DATE FOR DETERMINATION OF STOCKHOLDERS ENTITLED TO VOTE; VOTES REQUIRED" BEGINNING ON PAGE 6.

BY THIS INFORMATION STATEMENT, THE COMPANY BOARD SEEKS STOCKHOLDER APPROVAL OF THE MERGER AGREEMENT, SUBSTANTIALLY IN THE FORM ATTACHED HERETO AS **<u>EXHIBIT A</u>** (THE "**MERGER AGREEMENT**"), WHICH PROVIDES FOR THE ACQUISITION OF LEEF BY ICANIC BRANDS COMPANY INC., A COMPANY INCORPORATED PURSUANT TO THE *BUSINESS CORPORATIONS ACT* (BRITISH COLUMBIA) ("**PURCHASER**"), THROUGH THE MERGER OF PURCHASER'S WHOLLY OWNED SUBSIDIARY, ICANIC MERGER SUB, INC., A NEVADA CORPORATION ("**MERGER SUB**"), WITH AND INTO LEEF, WITH LEEF AS THE SURVIVING CORPORATION UPON THE CONSUMMATION OF SUCH MERGER ("**MERGER**"). EXHIBITS TO THE MERGER AGREEMENT ARE AVAILABLE UPON REQUEST TO LEEF.

THE COMPANY BOARD BELIEVES THAT THE MERGER IS ADVISEABLE AND IN THE BEST INTERESTS OF LEEF AND ITS STOCKHOLDERS. THE COMPANY BOARD HAS APPROVED THE MERGER, THE MERGER AGREEMENT AND THE OTHER TRANSACTIONS CONTEMPLATED THEREBY AND RECOMMENDS THAT ALL STOCKHOLDERS PROVIDE THEIR CONSENT APPROVING THE MERGER, THE MERGER AGREEMENT AND THE OTHER TRANSACTIONS CONTEMPLATED THEREBY.

**IN ORDER TO CONSENT TO THE MERGER, THE MERGER AGREEMENT AND THE OTHER TRANSACTIONS CONTEMPLATED THEREBY, YOU MUST RETURN AN EXECUTED SIGNATURE PAGE TO THE WRITTEN CONSENT ATTACHED AS <u>EXHIBIT B</u>, (I) BY DOCUSIGN (OR EMAIL), OR (II) BY MAIL TO THE ATTENTION OF KEVIN WILSON, VICE PRESIDENT OF FINANCE OF LEEF, 175 N. LENORE AVENUE, WILLITS, CALIFORNIA 95490 AS SOON AS POSSIBLE BUT IN NO EVENT LATER THAN CLOSE OF BUSINESS ON FEBRUARY 27, 2022.**

THE MERGER INVOLVES CERTAIN RISKS TO THE STOCKHOLDERS OF LEEF. SEE "RISK FACTORS" SET FORTH BELOW ON PAGE 22 FOR A DISCUSSION OF THESE RISKS.

**THE PROPOSED MERGER IS A COMPLEX TRANSACTION. IN CONSIDERING THE RECOMMENDATION OF THE COMPANY BOARD, STOCKHOLDERS SHOULD REVIEW AND CONSIDER CAREFULLY ALL THE INFORMATION CONTAINED IN THIS INFORMATION STATEMENT, INCLUDING THE INFORMATION CONTAINED IN THE ATTACHED DOCUMENTS.** EACH STOCKHOLDER OF LEEF MUST PURSUE HIS, HER OR ITS OWN INDEPENDENT EVALUATION AND MAKE SUCH INVESTIGATION AS HE, SHE OR IT DEEMS APPROPRIATE WITH RESPECT TO THE CONSEQUENCES OF THE TRANSACTIONS DESCRIBED IN THIS INFORMATION STATEMENT. STOCKHOLDERS SHOULD NOT CONSTRUE THE CONTENTS OF THIS INFORMATION STATEMENT OR ANY PRIOR OR SUBSEQUENT COMMUNICATIONS FROM OR WITH LEEF OR PURCHASER OR ANY PROFESSIONAL ASSOCIATED WITH THE MERGER AS LEGAL, TAX OR INVESTMENT ADVICE. STOCKHOLDERS OF LEEF SHOULD CONSULT THEIR OWN LEGAL COUNSEL, ACCOUNTANT AND INVESTMENT ADVISORS, RESPECTIVELY, AS TO LEGAL, TAX AND OTHER MATTERS CONCERNING THE TRANSACTIONS CONTEMPLATED BY THE MERGER AGREEMENT AND DESCRIBED HEREIN, AND THE CONSEQUENCES OF THE TRANSACTIONS DESCRIBED IN THIS INFORMATION STATEMENT.

NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATION NOT CONTAINED IN THIS INFORMATION STATEMENT, AND, IF GIVEN OR MADE, SUCH INFORMATION OR REPRESENTATION SHOULD NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED BY LEEF OR PURCHASER. THE DELIVERY OF THIS INFORMATION STATEMENT SHALL NOT, UNDER ANY CIRCUMSTANCES, CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF EITHER LEEF OR PURCHASER SINCE THE DATE HEREOF.

THIS INFORMATION STATEMENT DOES NOT CONSTITUTE AN OFFER TO, AN INVITATION TO OR A SOLICITATION OF ANY PERSON OTHER THAN TO A STOCKHOLDER OF LEEF, AND DOES NOT CONSTITUTE AN OFFER TO OR SOLICITATION OF ANY PERSON (INCLUDING STOCKHOLDERS OF LEEF) IN A JURISDICTION IN WHICH SUCH OFFER OR SOLICITATION IS NOT AUTHORIZED OR TO ANY PERSON (INCLUDING STOCKHOLDERS OF LEEF) TO WHOM IT IS UNLAWFUL TO MAKE SUCH OFFER OR SOLICITATION.

**LEEF HOLDINGS, INC.**

**CONFIDENTIAL INFORMATION**

**STATEMENT**

**INTRODUCTION**

Leef Holdings, Inc., a Nevada corporation (variously referred to herein as "***Leef***" or the "***Company***") is furnishing this Confidential Information Statement ("***Information Statement***") in connection with the solicitation of action by written consent in lieu of a meeting of stockholders of the Company. In the written consent (the "***Written Consent***"), all Company stockholders are being asked to approve the proposed merger (the "***Merger***," or the "***Transaction***") of Icanic Merger Sub, Inc. ("***Merger Sub***"), a Nevada corporation and wholly-owned subsidiary of Icanic Brands Company Inc., a Company incorporated pursuant to the *Business Corporations Act (British Columbia)* (the "***Purchaser***"), with and into the Company. As a result of the Merger, the Company will be the surviving corporation (the "***Surviving Corporation***"*)* and will become a wholly owned subsidiary of Purchaser. The Merger will become effective (the "***Effective Time***") upon the filing of a certificate of merger with the Secretary of State of the State of Nevada pursuant to the laws of the State of Nevada or such later time as Purchaser and the Company may agree in the Certificate of Merger. This Information Statement is accompanied by the following documents for use for this purpose:

1) Action by Written Consent (attached as **<u>Exhibit B</u>**); and

2) Accredited Investor Certification (attached as **<u>Exhibit C</u>**).

All of the above documents will need to be completed and returned to Kevin Wilson, Vice President of Finance of LEEF at 175 N. Lenore Avenue, Willits, California 95490 or by either DocuSign or email at kevin@leefca.com as soon as possible, but not later than February 27, 2022.

The Merger is subject to the terms and conditions of the Merger Agreement by and among Purchaser, Merger Sub, Company and Micah Anderson, solely in his capacity as the Stockholders' Representative (the "***Stockholder Representative***") dated January 21, 2022 (the "***Merger Agreement***"). A copy of the Merger Agreement is attached as **<u>Exhibit A</u>** to this Information Statement. Terms used but not otherwise defined herein have the meanings set forth in the Merger Agreement.

In full consideration for the Transaction, and subject to the terms and conditions set forth in the Merger Agreement, the aggregate amount payable by the Purchaser shall be the issuance of a number of Purchaser Common Shares in an amount equal to (the "***Closing Payment***") the higher of (a) $120,000,000 or (b) two times the TTM Company Revenue for the period ended September 30, 2021, divided by the 30-day VWAP of the Purchaser Common Shares on the CSE for the period ended on the Business Day prior to the effective date of the Merger, using the daily foreign exchange rate for Canadian to United States dollars published by the Bank of Canada on the date the 30-day VWAP of the Purchaser Common Shares on the CSE is determined. No cash consideration will be payable by Purchaser, and no Company Stockholder will be entitled to receive any cash consideration, for any Company Common Shares.

As of the Effective Time, all Company Common Shares (other than Company Common Shares for which appraisal rights are perfected), will be converted into the right to receive from Purchaser, subject to all of the terms and conditions set forth in the Merger Agreement, for each share of Company Common Shares a pro rata portion of the Payment Shares. Each issued and outstanding share of capital stock of Merger Sub will be converted into one share of common stock of the Company as the surviving corporation after the Merger (the "***Surviving Corporation***").

In addition, the Merger Agreement includes an earnout component pursuant to which the Company Stockholders may receive additional consideration following the Closing of the Merger contingent upon the achievement of certain financial milestones as more particularly described in Section 2.10 to the Merger Agreement. The potential earnout payments (each, an "***Earnout Payment***"), will be based on the TTM Company Revenue following the Closing and paid, if at all, as follows:

● On the date this 15 months following Closing, an amount of Purchaser Common Shares equal in value to 10% of the difference of (A) the product equal to two times the TTM Company Revenue calculated for the 12-month period immediately following Closing minus (B) the Closing Payment (the "  ***First Earn-Out Payment*** ");

● On the date this is 27 months following Closing, an amount of Purchaser Common Shares equal in value to 10% of the difference of (A) the product equal to two times the TTM Company Revenue calculated for the 12-month period immediately following the first anniversary of the Closing minus (B) the Closing Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment (the "  ***Second Earn-Out Payment*** "); and

● 39 months following Closing, an amount of Purchaser Common Shares equal in value to 10% of the difference of (A) the product equal to two times the TTM Company Revenue calculated for the 12-month period immediately following the second anniversary of the Closing minus (B) the Closing Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment minus (D) any amounts paid pursuant to the Second Earn-Out Payment.

Each Earnout Payment or any portion thereof, if any, will be paid out in a number of Purchaser Common Shares equal in value to the applicable Earnout Payment divided by the 30-day VWAP of the Purchaser Common Shares on the CSE for the period ended on the Business Day prior to the applicable payment date, using the daily foreign exchange rate for Canadian to United States dollars published by the Bank of Canada on the date the 30-day VWAP of the Purchaser Common Shares on the CSE is determined. Each Company Stockholder shall be entitled to receive their respective pro rata portion of the Purchaser Common Shares issued as to each Earnout Payment. Each Earnout Payment is a contingent payment and there is no guarantee that the Company will achieve revenues in amounts necessary to earn part or all of any Earnout Payment.

No person has been authorized to give any information or to give any representation not contained in this Information Statement in connection with the Merger Agreement, the Merger or the other transactions contemplated by the Merger Agreement (as described herein), and, if given or made, such information or representation must not be relied upon as having been authorized by the Company or Purchaser. Neither the delivery of this Information Statement nor any distribution of the Closing Payment as to which this Information Statement relates shall, under any circumstances, create an implication that there has been no change in the information contained herein since the date hereof.

The parties currently anticipate that the closing of the Merger will take place on or before March 22, 2022, although there can be no guarantee that the Merger will be completed by this time, or at all. The date of this Information Statement is January 27, 2022.

The Company and certain of its stockholders are parties to one or more of the following agreements: (i) Voting Agreement of Leef Holdings, Inc. dated January 28, 2019 by and among Micah Anderson and certain Company Stockholders (the "***Voting Agreement***") and/or (ii) Stockholders' Agreement of Leef Holdings, Inc. dated January 28, 2019 by and among certain Company Stockholders (the "***Shareholders' Agreement***"). Pursuant to the terms of the Voting Agreement and Shareholders' Agreement, all Company Stockholders that are a party to either are required to vote in favor of and approve the Transaction. As such, **EACH COMPANY STOCKHOLDER THAT IS A PARTY TO EITHER THE VOTING AGREEMENT AND/OR THE SHAREHOLDERS' AGREEMENT IS REQUESTED TO COMPLETE, SIGN AND PROMPTLY RETURN THE (I) WRITTEN CONSENT AND (II) ACCREDITED INVESTOR CERTIFICATION, EACH ATTACHED HERETO TO KEVIN WILSON, VICE PRESIDENT OF FINANCE OF LEEF, 175 N. LENORE AVENUE, WILLITS, CALIFORNIA 95490 OR BY EITHER DOCUSIGN OR EMAIL AT KEVIN@LEEFCA.COM NO LATER THAN FEBRUARY 27, 2022.**

**Should any Company Stockholder have any questions regarding the Merger and the transactions contemplated thereby, please contact Kevin Wilson, Vice President of LEEF, by mail, email or telephone at:**

**Kevin Wilson**

**Vice President of Finance**

**175 N. Lenore Avenue**

**Willits, California 95490**

**(416) 797-6455**

**kevin@leefca.com**

**FORWARD-LOOKING STATEMENTS**

This Information Statement contains forward-looking statements. When used in this Information Statement, the words "expects," "anticipates," "estimates" and similar expressions are intended to identify forward-looking statements. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements and, therefore, you should not place undue reliance on any forward-looking statements.

**THE WRITTEN CONSENT**

**Purpose**

The Written Consent accompanying this Information Statement is being solicited on behalf of the Company's Board of Directors (the "***Company Board***"). As required by the Voting Agreement and Stockholders' Agreement, certain **Company Stockholders are requested to execute the accompanying Written Consent and promptly return the signature page and other related documents to Kevin Wilson, Vice President of Finance of LEEF, 175 N. Lenore Avenue, Willits, California 95490 or by either DocuSign or by email to kevin@leefca.com.**

**Written Consent**

In the Action by Written Consent (the "***Written Consent***") (attached hereto as **<u>Exhibit B</u>**), all Company Stockholders are being asked to approve the Merger Agreement, the Merger and the other transactions contemplated by the Merger Agreement, including the appointment of Micah Anderson as the Stockholder Representative (the "***Transaction Proposal***").

Additionally, all Company stockholders are being asked in the Written Consent to approve, and to be bound by, the indemnification and other obligations set forth in the Merger Agreement, including, without limitation, those set forth in Article 11 thereof.

**Record Date for Determination of Stockholders Entitled to Vote; Votes Required**

***Record Date; Stockholders Entitled to Vote***

 ****

Only holders of record of Company Common Shares as of the close of business on January 21, 2022 (the "***Record Date***") are entitled to receive notice of and to grant or withhold consent with respect to approval and adoption of each of the resolutions set forth in the Written Consent. At the close of business on the Record Date, there were outstanding 86,764,427 Company Common Shares.

***Votes Required***

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*Approval of the Merger.* Under Nevada law, the articles of incorporation and bylaws of the Company, the approval and adoption of the Merger Agreement and the transactions contemplated thereby will require the written consent of at least a majority of the then-outstanding Company Common Shares.

*Appointment of Stockholder Representative*. The approval of the appointment of Micah Anderson to serve as the Stockholder Representative pursuant to the Merger Agreement is also being sought by the holders of a majority of the Company Common Shares.

*Agreement*. Pursuant to the terms of the Voting Agreement and Shareholders' Agreement, certain Company Stockholders that are a party to either are required to vote in favor of and approve the Transaction and the matters set forth in the Written Consent.

**Consent Procedure**

Section 78.320 of the Nevada Revised Statutes states that, unless otherwise provided in the articles of incorporation, any action required to be taken or which may be taken at any annual or special meeting of stockholders of a corporation may be taken without a meeting, without prior notice and without a vote, if a consent or consents in writing, setting forth the action so taken, shall be signed by the holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted. Those consents must be delivered to the corporation for inclusion in the minutes or filing with the corporate records. The articles of incorporation and bylaws of the Company do not limit the applicability of Section 78.320 of the Nevada Revised Statutes.

Under Chapter 78 of the Nevada Revised Statutes, only stockholders of record on the Record Date are eligible to give their consent. Persons owning shares "beneficially" (*i.e.*, deriving the economic benefits of ownership thereof, or having the power to vote or dispose of shares), but not of "record" (*i.e.*, whose names are recorded on the stock transfer records of the Company), should instruct such nominee to execute the consent on their behalf or have such nominee execute and mail such consent. A written consent may be revoked by a writing to that effect received by the corporation prior to the receipt by the corporation of unrevoked written consents sufficient in number to approve the Transaction.

Pursuant to the terms of the Voting Agreement and Shareholders' Agreement, all Company Stockholders that are a party to either are required to vote in favor of and approve the Transaction.

**Recommendation of the Company Board**

After careful consideration, the Company Board has determined that the Transaction Proposal is fair to and in the best interests of the Company's stockholders. Accordingly, the Company Board recommends that the Company's stockholders approve the Transaction Proposal. Please refer to the information under the captions "*Background*" and "*Reasons for the Merger*" beginning on page 9 below for a discussion of the matters considered by the Company Board in connection with its approval of the Transaction Proposal.

**Interests of the Company Board**

***In considering such recommendation of the Company Board, you should be aware that Micah Anderson serves as a director and member of the Company Board, and Mr. Anderson may have interests in the matters proposed that are different from, or in addition to, your interests.*** The Company Board was aware of these interests and considered them, among other things, in approving such matters. Please refer to the information under the caption "*Interests of the Company Board and Management*" beginning on page 28.

**Dissenter's Rights**

Holders of Company Common Shares who do not vote in favor of the Merger may, under certain circumstances and by following procedures prescribed by Nevada law (as defined below), exercise dissenter's rights or the right to receive cash for their Company Common Shares. Please refer to the section of this Information Statement under the caption "*Dissenter's Rights*" beginning on page 26 for additional information. Any Company Stockholders that are a party to either the Voting Agreement and/or Stockholders' Agreement are required to vote in favor of and approve the Transaction, and therefore will *not* be entitled to exercise dissenter's rights.

**TRANSACTION PROPOSAL**

All Company Stockholders are being asked to vote to approve the Merger, the Merger Agreement and the transactions contemplated thereby, including the appointment of Micah Anderson as the Stockholder Representative. Pursuant to the Merger Agreement, Merger Sub will be merged with and into the Company. The Company will survive the Merger and become a wholly owned subsidiary of Purchaser. Subject to the satisfaction or waiver of all conditions set forth in the Merger Agreement, the Merger will become effective upon the filing of the Certificate of Merger with the Secretary of State of the State of Nevada. The Merger is structured is a "reverse takeover" or "RTO" transaction, and as such the Company Stockholders, in the aggregate, will own greater than 50% of the issued and outstanding Purchaser Common Shares following the closing of the Merger.

**The Companies** 

**The Purchaser**

*Corporate Structure*

 

The Purchaser was incorporated on September 15, 2011, under the laws of the Province of British Columbia and is registered extra-provincially under the laws of the Province of Ontario. The Purchaser is a public company whose common shares are listed for trading on the CSE under the symbol "ICAN". The head office of the Company is located at Suite 810 - 789 West Pender Street, Vancouver, BC, V6C 1H2, Canada.

*Business*

 

The Purchaser is a cannabis branded products manufacturer based in California, the largest and most competitive cannabis market in the world. The Purchaser's mission is to make cannabis safe and approachable, which starts with manufacturing high-quality products delivering consistent experiences.

Additional information about the Purchaser, including Purchaser's public filings, can be obtained from the Purchaser's SEDAR profile at www.sedar.com.

**Merger Sub**

Merger Sub is a Nevada corporation and wholly owned subsidiary of Purchaser. Merger Sub is not an operating company and has the sole purpose of facilitating the Merger.

**The Company**

*Corporate Structure*

 

The Company is a Nevada corporation. The Company owns all of the membership interests in (i) Seven Zero Seven, LLC, a California limited liability company, (ii) Payne's Distribution, LLC, a California limited liability; (iii) Paleo Paw, Corp., a California corporation; (iv) ZBN Research, LLC; and (v) Willits retail, LLC.

*Business*

 

The Company is a vertically integrated cannabis holding company with its primary operations in Willits, California. The Company owns and operates multiple licensed cannabis operations throughout California as well as a CBD wellness operation shipping globally.

The Company's core business is the production and distribution of cannabis oil and other related products manufactured in Willits California using a type 7 extraction license. Type 7 licenses allow the extraction of cannabis material using organic ethanol and hydrocarbon solvents.

The Company also has a consumer package goods line outside of the cannabis industry that focuses on CBD and wellness products under the Leef Organics product line. Leef Organics products are available via the Company's online store direct to consumers, as well as sold directly into retailers such as Nordstrom, Anthropology and the Marriott hotels. In addition, Paleo Paw, the Company's dog treat and wellness brand, is also available through these channels.

In early 2020, The Company established ZBN Research, LLC ("***ZBN***"). ZBN is the Company's pharmaceutical research company that will focus on researching and creating new compounds and products. ZBN was founded to develop data driven endo-cannabinoid and psychedelic based formulations, foster original research and create new plant based pharmaceutical products. ZBN is currently pursuing preclinical and clinical trials on endocannabinoid formulations with indications of insomnia and pain relief.

**Background**

Purchaser delivered to the Company a written proposal with respect to the acquisition of the Company by Purchaser (the "***LOI***"). The Company Board believed such offer to be in good faith and proceeded to negotiate the terms of the transaction including, without limitation, the aggregate consideration (as more fully described below) and the related documentation. Over the course of several weeks, the parties negotiated the terms of the LOI and ultimately executed such LOI on August 18, 2021. Since that time, the parties and their respective legal counsel and advisors have negotiated the Merger Agreement and related documentation. On January 21, 2022, the Company Board approved the execution of the Merger Agreement and the related documentation, and the terms of the Merger.

**Reasons for the Merger**

The Company Board has determined that the terms of the Transaction are advisable•• to, and in the best interests of, the Company and its stockholders, and the Company Board has approved the Merger Agreement and the transactions contemplated thereby. The Company Board believes that a number of strategic benefits will accrue from the Transaction, although there can be no assurance that any of the benefits expected from the Transaction will be realized.

In reaching such determination to recommend approval of the Merger Agreement and the Transaction, the Company Board considered, among other things, the following factors (a) the consideration to be received by the holders of Common Stock in the Transaction; (b) the Company's prospects if it were to remain independent; (c) the financial condition, results of operations and business and strategic objectives of the Company on both an historical and prospective basis, and current industry, economic and market conditions; (d) the possible strategic growth opportunities that might be available to the Company absent the Transaction, and the belief, based on the review of such opportunities, that the stockholders would benefit most from the potential Transaction; (e) the alternatives available to the Company, the likelihood that the Company would be able to negotiate and consummate a transaction with another party and the strategic fit of the Company's business with that of Purchaser; (f) the relative certainty associated with consummating a transaction with Purchaser; (g) the perceived ability to retain employees of the Company following a transaction with Purchaser; and (h) the terms of the Merger Agreement, including the parties' representations, warranties and covenants, the conditions to their respective obligations and indemnification obligations.

During such proceedings, the Company Board also considered and balanced against the potential benefits of the Merger a number of potentially negative factors, including, but not limited to, the following (a) the risk that the Transaction would not be consummated; and (b) other risks.

After considering these factors, the Company Board concluded that the potential benefits of the Transaction outweighed the negative factors against recommending the Transaction and determined that the Transaction was fair to and in the best interests of the Company's Stockholders.

The above discussion of the factors considered by the Company Board in making its decision is not intended to be exhaustive. In view of the variety of factors considered in connection with its evaluation of the Merger Agreement and the Transaction, the Company Board did not find it practicable to, and did not, quantify or otherwise assign relative weight to the specific factors considered in reaching its determination.

The Company has not sought or obtained an opinion from an outside investment bank or financial advisor as to the fairness of the Transaction to the Company's Stockholders.

**The Merger Agreement**

The following summary describes the material provisions of the Merger Agreement. The provisions of the Merger Agreement are complicated and not easily summarized. This summary may not contain all of the information about the Merger Agreement that is important to the Company's stockholders and this summary is qualified in its entirety by the terms of the Merger Agreement. **The Merger Agreement is attached to this Information Statement as <u>Exhibit A</u>, and you are encouraged to read it carefully and in its entirety for a more complete understanding of the Merger.**

**Purchase Price**

In full consideration for the Transaction, and subject to the terms and conditions set forth in the Merger Agreement, the aggregate amount payable by the Purchaser shall be the issuance of a number of Purchaser Common Shares in an amount equal to (the "***Closing Payment***") the higher of (a) $120,000,000 or (b) two times the TTM Company Revenue for the period ended September 30, 2021, divided by the 30-day VWAP of the Purchaser Common Shares on the CSE for the period ended on the Business Day prior to the effective date of the Merger, using the daily foreign exchange rate for Canadian to United States dollars published by the Bank of Canada on the date the 30-day VWAP of the Purchaser Common Shares on the CSE is determined. No cash consideration will be payable by Purchaser, and no Company Stockholder will be entitled to receive any cash consideration, for any Company Common Shares. The issuance of Purchaser Common Shares shall be the exclusive consideration payable for Company Common Shares.

As of the Effective Time, all Company Common Shares (other than Company Common Shares for which appraisal rights are perfected), will be converted into the right to receive from Purchaser, subject to all of the terms and conditions set forth in the Merger Agreement, for each share of Company Common Shares a pro rata portion of the Payment Shares. Each issued and outstanding share of capital stock of Merger Sub will be converted into one share of common stock of the Company as the surviving corporation after the Merger (the "***Surviving Corporation***").

**Earnout Payment**

The Merger Agreement includes an earnout component pursuant to which the Company Stockholders may receive additional consideration following the Closing of the Merger contingent upon the achievement of certain financial milestones as more particularly described in Section 2.10 to the Merger Agreement. The potential earnout payments (each, an "***Earnout Payment***"), will be based on the TTM Company Revenue following the Closing and paid, if at all, as follows:

● On the date this 15 months following Closing, an amount of Purchaser Common Shares equal in value to 10% of the difference of (A) the product equal to two times the TTM Company Revenue calculated for the 12-month period immediately following Closing minus (B) the Closing Payment (the "  ***First Earn-Out Payment*** ");

● On the date this is 27 months following Closing, an amount of Purchaser Common Shares equal in value to 10% of the difference of (A) the product equal to two times the TTM Company Revenue calculated for the 12-month period immediately following the first anniversary of the Closing minus (B) the Closing Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment (the "  ***Second Earn-Out Payment*** "); and

● 39 months following Closing, an amount of Purchaser Common Shares equal in value to 10% of the difference of (A) the product equal to two times the TTM Company Revenue calculated for the 12-month period immediately following the second anniversary of the Closing minus (B) the Closing Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment minus (D) any amounts paid pursuant to the Second Earn-Out Payment.

Each Earnout Payment or any portion thereof, if any, will be paid out in a number of Purchaser Common Shares equal in value to the applicable Earnout Payment divided by the 30-day VWAP of the Purchaser Common Shares on the CSE for the period ended on the Business Day prior to the applicable payment date, using the daily foreign exchange rate for Canadian to United States dollars published by the Bank of Canada on the date the 30-day VWAP of the Purchaser Common Shares on the CSE is determined. Each Company Stockholder shall be entitled to receive their respective pro rata portion of the Purchaser Common Shares issued as to each Earnout Payment. Each Earnout Payment is a contingent payment and there is no guarantee that the Company will achieve revenues in amounts necessary to earn part or all of any Earnout Payment.

**Treatment of Convertible Debt**

The Company is a party to that certain Indenture dated June 6, 2019 by and among the Company and Odyssey Trust Company, as both Trustee and Collateral Agent thereunder (the "***Indenture***"). Pursuant to the terms of the Indenture, the Company issued 9% Convertible Senior Secured Debentures due June 6, 2022 (the "***Convertible Debentures***"), of which there are currently Convertible Debentures in the aggregate amount of $13,972,937 in principal and interest outstanding. All debts and obligations under the Convertible Debentures will be assumed by the Purchaser. In addition, the holders of Convertible Debentures will be entitled to convert their Company Debentures for Purchaser Common Shares in accordance with the terms of the Indenture.

**Treatment of Stock Options**

The Company currently has 9,667,362 options to purchase Company Common Shares issued and outstanding under its 2019 Stock Incentive Plan (the "***Company Options***"). Upon Closing, all Company Options will be assumed by Purchaser, and the Purchaser will replace all such assumed Company Options with newly issued options under the Purchaser's equity incentive plan to purchase Purchaser Common Shares. All newly issued options by the Purchaser will be on substantially identical terms as the Company Options, except that the number of shares such options are exercisable for and the exercise price will be proportionately adjusted.

**Treatment of Warrants**

The Company currently has 527,338 warrants to purchase Company Common Shares issued and outstanding (the "***Company Warrants***"). Upon Closing, all Company Warrants will be assumed by the Purchaser. By the terms of the Company Warrants, all Company Warrants will automatically become exercisable for Purchaser Common Shares, except that the number of shares such Company Warrants are exercisable for and the exercise price of such Company Warrants will be proportionately adjusted.

**Financial Advisory Fees**

The Company retained Bayline Capital Partners, Inc. ("***Bayline***") to advise it in connection with the Transaction. Pursuant to the terms of the engagement agreement with Bayline as compensation for its services in connection with the Transaction, Bayline will be entitled to a fee equal in amount to 2.65% of any consideration payable in the Transaction. Bayline's fee will be paid by a combination of cash and the issuance of Purchaser Common Shares. As such, Bayline will be entitled to receive its portion of any consideration (including any Earnout Payment) payable to the Company Stockholders under the Merger Agreement.

**Stockholder Representative**

By approving the Merger Agreement and by executing and delivering the Written Consent, the Company's stockholders are deemed to have approved the appointment of Micah Anderson as their agent and attorney-in-fact in his capacity as the Stockholders' Representative, with authority to take, on their behalf, all actions required or permitted pursuant to the Merger Agreement, including with respect to administering claims for indemnification pursuant to Article 11 of the Merger Agreement. As such, the Stockholder Representative will have full power to give and receive notices and communications as provided in the Merger Agreement, to object to any claims of an Indemnified Party, to agree to, negotiate, enter into settlements and compromises of, and demand arbitration and comply with orders of courts and awards of arbitrators with respect to, such claims or Losses, to determine and finally resolve any disputes with respect to the Earnout Payment, to waive after the Closing any breach or default of the Purchaser or Surviving Corporation of any obligation to be performed by it under this Agreement, to receive service of process on behalf of each Company Stockholder in connection with any claims against such Company Stockholder arising under or in connection with this Agreement, any document or instrument provided for hereby or any of the transactions contemplated by the Merger Agreement or under any other Ancillary Agreements, and to take all other actions that are either (a) necessary or appropriate in the judgment of the Stockholder Representative for the accomplishment of the foregoing or (b) specifically mandated by the terms of the Merger Agreement. The Stockholder Representative will have no liability to the Company Stockholders for his actions or failures to act in such capacity while acting in good faith. In addition, the Company Stockholders are obligated to indemnify the Stockholder Representative for any loss, liability, damage, claim, penalty, fine, forfeiture, actions, fee, cost or expense he incurs in performing his duties under the Merger Agreement.

**Stockholder Approval**

The Merger Agreement requires that the Company obtain by written consent of the requisite vote of the Company's Stockholders in accordance with the Company's articles of incorporation, its bylaws and Nevada law.

**Indemnification Provisions**

*Indemnification by Company Stockholders*

 

Subject to the limitations set forth in Article 11 of the Merger Agreement, each of the Company Stockholders shall severally and not jointly (according to their respective pro rata portion), indemnify Purchaser, Merger Sub and their Affiliates (including the Surviving Corporation) and each of their respective successors and assigns (hereinafter referred to as, the "***Purchaser Indemnitees***") and hold each of them harmless from and against of any Loss which such Purchaser Indemnitee suffers, sustains or becomes subject to as a result of, arising out of, relating to or in connection with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any inaccuracy of any representation or warranty of the Company set forth in Article 4 of the Merger Agreement (as supplemented or qualified by the Company Disclosure Letter) or in any certificate, agreement or other document delivered pursuant to the Merger Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the breach or non-fulfillment of any covenant, undertaking, agreement or other obligation of the Company under the Merger Agreement, or any certificate, agreement or other document delivered pursuant to the Merger Agreement.

*Indemnification by Purchaser*

 

Subject to the limitations set forth in Article 11 of the Merger Agreement, the Purchaser shall indemnify the Company Stockholders and each of their Affiliates and each of their respective successors and assigns (hereinafter referred to as, the "***Company Indemnitees***") and hold each of them harmless from and against of any Loss which such Company Indemnitee suffers, sustains or becomes subject to as a result of, arising out of, relating to or in connection with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any inaccuracy of any representation or warranty of Purchaser set forth in Article 3 of the Merger Agreement (as supplemented or qualified by the Purchaser Disclosure Letter) or in any certificate, agreement or other document delivered pursuant to the Merger Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the breach or non-fulfillment of any covenant, undertaking, agreement or other obligation of the Purchaser under the Merger Agreement, or any certificate, agreement or other document delivered pursuant to the Merger Agreement.

*Indemnification Limitations*

 

Neither the Purchaser Indemnitees nor the Company Indemnitees may recover any Losses (other than a breach of a Fundamental Representation or for fraud) unless and until Losses in an aggregate amount greater than Seven Hundred Thousand Dollars ($700,000.00) (the "***Deductible***") have been incurred, paid or properly accrued by the Purchaser Indemnitees or Company Indemnitees, as applicable, in which case the Purchaser Indemnitees or Company Indemnitees, as applicable, may recover for all Losses in excess of the Deductible. In no event shall the aggregate Liability of the Company Stockholders for any Losses (other than a breach of Fundamental Representation or for fraud), exceed ten percent (10.0%) of the aggregate amount paid to such Company Stockholders (the "***General Cap***"). In addition, in no event shall the aggregate Liability of the Company Stockholders for any Losses (other than for fraud), exceed sixty percent (60.0%) of the aggregate amount paid to such Company Stockholders (the "***Aggregate Cap***").

Notwithstanding the foregoing, Losses recoverable from any Company Stockholder in respect of any fraud on the part of any such Company Stockholder will not be subject to the Deductible, General Cap, Aggregate Cap or in any way limited as set forth above. However, Purchaser Indemnitees will be entitled to recover Losses in connection with any such fraud only from the Company Stockholders responsible for the commission of such fraud and no other Company Stockholders will be liable for such Losses.

**Exchange Procedure for Common Stock**

In order to receive his, her or its portion of the Closing Payment and Earnout Payment, each Company Stockholder must complete, sign and return to the Purchaser's depository, National Securities Administrators Ltd. (the "***Depository***") a letter of transmittal (the "***Letter of Transmittal***"). Purchaser shall cause a Letter of Transmittal to be sent to each Company Stockholder, together with instructions for its return to the Depository. Each Company Stockholder who returns to the Depository his, her or its Letter of Transmittal executed and completed in accordance with its instructions, and a duly executed Accredited Investor Certificate to the extend not previously completed, shall receive such aggregate Closing Payment and Earnout Payment to which such Company Stockholder is entitled pursuant to the Merger Agreement.

**Regulatory Matters**

The consummation of the Merger is subject to, among other conditions, the receipt of consent to the Merger by various state and local governmental agencies as well as filings with and notifications to certain governmental entities and other organizations such as the CSE. In particular, the following state and local governmental agencies and entities are required: (i) Bureau of Cannabis Control (State of California), (ii) City of Willits, California and (iii) City of Arvin, California.

**Representations and Warranties**

The Merger Agreement contains customary representations and warranties of the parties regarding, among other things (a) organizational matters (including, without limitation, standing and power to conduct business); (b) authority to enter into and perform its obligations under the Merger Agreement; and (c) the execution, delivery and performance of the Merger Agreement will not violate or contravene any provision of the Company's articles of incorporation, bylaws, certain agreements or applicable law.

In addition, the Company has made representations and warranties regarding, among other things: (a) its subsidiaries; (b) its capitalization; (c) any consents required necessary for the consummation of the Transaction; (d) its financial statements; (e) absence of certain changes; (f) absence of undisclosed liabilities; (g) litigation; (h) restrictions on business activities; (i) governmental authorizations; (j) title to property; (k) intellectual property; (l) environmental matters; (m) taxes; (n) employee benefit plans; (o) matters related to employees; (p) interested party transactions; (q) leased property; (r) compliance with laws; (s) its books and records; (t) brokers' and finders' fees; and (u) material contracts.

Purchaser and Merger Sub also made representations and warranties regarding, among other things: (a) their subsidiaries; (b) their capitalization; (c) any consents required necessary for the consummation of the Transaction; (d) their public filings and financial statements; (e) absence of certain changes; (f) absence of undisclosed liabilities; (g) litigation; (h) restrictions on business activities; (i) governmental authorizations; (j) title to property; (k) intellectual property; (l) environmental matters; (m) taxes; (n) employee benefit plans; (o) matters related to employees; (p) interested party transactions; (q) leased property; (r) compliance with laws; (s) its books and records; (t) brokers' and finders' fees; (u) material contracts; (v) the Purchaser Common Shares to be issued; and (w) available cash reserves.

**Covenants Relating to the Company's Conduct of Business**

From the date of the Merger Agreement until the Closing Date, the Company agreed that it would carry on its business in the ordinary course consistent with past practice.

In addition, the Company is prohibited from taking certain actions without the consent of Purchaser from the date of the Merger Agreement until the Closing Date, including but not limited to: (a) amending any of the Company's organizational documents; (b) declaring, authorizing or paying dividends; (c) issuing stock or equity; (d) increasing the compensation of any officer, director, employee or consultant; (e) terminating, amending or entering into any material contract or lease; (f) selling, transferring, leasing or encumbering any assets outside the ordinary course of business; (g) instituting, settling or compromising any action or legal proceeding involving the payment of monetary damages; (h) acquiring (by merger, purchaser or consolidation) any equity securities or assets of any business or any person; (i) borrowing money, incurring indebtedness, guarantying the indebtedness of another or making any loans; (j) splitting, combining or reclassifying the equity securities of the Company or repurchasing or redeeming any equity securities of the Company; (k) making any capital expenditure in excess of $150,000 or outside the ordinary course of business; (l) terminating or modifying any material insurance policy; (m) selling, assigning, transferring or granting any security interest in or to any material intellectual property; (n) engaging in any business outside the ordinary course; (o) adopting a stockholder rights or similar plan; (p) organizing any new subsidiary that is not wholly-owned; (q) adopting any plan of partial or complete liquidation or dissolution or effecting a reorganization or restructuring; and (o) entering into any agreement or contract to do any of the foregoing.

**Covenants Relating to the Purchaser's Conduct of Business**

From the date of the Merger Agreement until the Closing Date, the Purchaser agreed that it would carry on its business in the ordinary course consistent with past practice.

In addition, the Purchaser is prohibited from taking certain actions without the consent of the Company from the date of the Merger Agreement until the Closing Date, including but not limited to: (a) amending any of the Purchaser's organizational documents; (b) declaring, authorizing or paying dividends; (c) issuing stock or equity; (d) increasing the compensation of any officer, director, employee or consultant; (e) terminating, amending or entering into any material contract or lease; (f) selling, transferring, leasing or encumbering any assets outside the ordinary course of business; (g) instituting, settling or compromising any action or legal proceeding involving the payment of monetary damages; (h) acquiring (by merger, purchaser or consolidation) any equity securities or assets of any business or any person; (i) borrowing money, incurring indebtedness, guarantying the indebtedness of another or making any loans; (j) splitting, combining or reclassifying the equity securities of the Purchaser or repurchasing or redeeming any equity securities of the Purchaser; (k) making any capital expenditure in excess of $100,000 or outside the ordinary course of business; (l) terminating or modifying any material insurance policy; (m) selling, assigning, transferring or granting any security interest in or to any material intellectual property; (n) engaging in any business outside the ordinary course; (o) adopting a stockholder rights or similar plan; (p) organizing any new subsidiary that is not wholly-owned; (q) adopting any plan of partial or complete liquidation or dissolution or effecting a reorganization or restructuring; and (o) entering into any agreement or contract to do any of the foregoing.

**Additional Covenants of the Company and Purchaser**

In addition to covenants relating to the conduct of the Company's business, the Merger Agreement includes covenants of the Company relating to: (a) notification requirements upon the occurrence of certain events; (b) updates to disclosure schedules to the Merger Agreement; (c) use of commercially reasonable efforts to perform its obligations under the Merger Agreement and obtain all necessary consents and approvals; and (d) public disclosure.

In addition to covenants relating to the conduct of the Purchaser's business, the Merger Agreement includes covenants of the Purchaser relating to: (a) non-solicitation; (b) notification requirements upon the occurrence of certain events; (c) updates to disclosure schedules to the Merger Agreement; (d) use of commercially reasonable efforts to perform its obligations under the Merger Agreement and obtain all necessary consents and approvals; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) public disclosure.

**Expenses**

Whether or not the Transaction is consummated, all costs and expenses arising out of, relating to or incidental to the discussion, evaluation, negotiation and documentation of the Merger Agreement and the transactions contemplated by the Merger Agreement (including reasonable fees and expenses of legal counsel and financial advisors and accountants), will be paid by the party incurring such expense.

**Conditions to the Merger**

*Purchaser and Merger Sub Closing Conditions*

 

Purchaser and Merger Sub's obligations to close the Merger are conditioned upon satisfaction of certain conditions, unless waived in writing, including without limitation, of the following: (a) the Company's performance of its obligations and the truth and accuracy of the Company's representations and warranties as of the Closing Date; (b) obtaining all necessary approvals, including governmental approvals, for the consummation of the Merger and the continued operation of the Company after the Merger, including the approval of the Written Consent by the requisite percentage of the Company's stockholders; (c) completion of all proceedings necessary to effect the Merger; (d) the absence of any actual or threatened action or legal proceeding that could restrict or enjoin the Transaction or result in a Material Adverse Effect on the Company; (d) available exemptions form registration under U.S. and Canadian securities laws for Purchaser Common Shares issued under the Merger Agreement; (e) delivery to Purchaser of the Company Capitalization Spreadsheet; (f) delivery to Purchaser of an employment agreement executed by Micah Anderson; (g) delivery to Purchaser of lock-up agreements by certain personnel of the Company; and (h) the delivery of various closing certificates executed by certain officers of the Company.

*The Company's Closing Conditions*

 

The Company's obligation to close the Merger are conditioned upon satisfaction of certain conditions, unless waived in writing, including without limitation, of the following: (a) the Purchaser's and Merger Sub's performance of their obligations and the truth and accuracy of the Purchaser's and Merger Sub's representations and warranties as of the Closing Date; (b) obtaining all necessary approvals, including governmental approvals, for the consummation of the Merger and the continued operation of the Company after the Merger, including the approval of the Written Consent by the requisite percentage of the Company's stockholders; (c) completion of all proceedings necessary to effect the Merger; (d) the absence of any actual or threatened action or legal proceeding that could restrict or enjoin the Transaction or result in a Material Adverse Effect on the Purchaser; (d) available exemptions form registration under U.S. and Canadian securities laws for Purchaser Common Shares issued under the Merger Agreement; (e) there shall not have been a Material Adverse Effect on Purchaser; (f) that Purchaser shall have an unrestricted cash balance of at least $3.0 Million; (f) that Purchaser shall not have liabilities exceeding $500,000.00; (g) delivery to the Company of lock-up agreements by certain personnel of the Purchaser; and (h) the delivery of various closing certificates executed by certain officers of the Purchaser.

**Termination and Amendment of the Merger Agreement**

*Termination.* The Merger Agreement may be terminated and the Merger abandoned by written notice explaining the reason for such termination, whether or not the stockholders have approved the Merger (a) at any time prior to the Closing by mutual written consent of Purchaser and the Company; (b) at any time prior to the Closing by the Purchaser, if (i) the Company is in material breach of any material provision of the Merger Agreement and such breach is not cured within ten (10) days of receipt by the Company of written notice from Purchaser of such breach, and (ii) the Purchaser and Merger Sub is not, on the date of termination, in material breach of any material provision of the Merger Agreement; (c) at any time prior to the Closing by the Company if (i) the Purchaser or the Merger Sub is in material breach of any material provision of the Merger Agreement and such breach is not cured within ten (10) days of receipt by such party of written notice from the Company of such breach, and (ii) the Company is not, on the date of termination, in material breach of any material provision of the Merger Agreement; (d) by the Purchaser or by the Company, if (i) the Closing has not occurred on or prior to March 22, 2022 for any reason; and (ii) the terminating Party is not, on the date of termination, in material breach of any material provision of the Merger Agreement; or (e) by the Purchaser or by the Company, if (i) there shall be a final non-appealable order of any governmental authority in effect preventing consummation of the Merger, or (ii) there shall be any law or order enacted, promulgated or issued or deemed applicable to the Merger by any governmental authority that would make consummation of the Merger illegal, or (iii) the Company Stockholders do not ratify and approve the Merger.

*Amendment*. The Merger Agreement may be amended, modified or supplemented at any time, but only pursuant to an instrument in writing signed by the parties; *provided*, that any amendment which by Law requires further approval by the Company's Stockholders will not be made without such approval.

**MATERIAL U.S. FEDERAL INCOME TAX CONSEQUENCES**

The following is a general summary of material U.S. federal income tax consequences of the Merger to the Company's Stockholders. The summary is based on the Code, applicable Treasury Regulations under the Code, Internal Revenue Service rulings and pronouncements and judicial decisions now in effect, all of which are subject to change, possibly with retroactive effect. Neither Purchaser nor the Company has requested or will request an advance ruling from the Internal Revenue Service as to the tax consequences of the Merger, nor will counsel to Purchaser or the Company render a tax opinion in connection with the Merger. The following summary is not binding on the Internal Revenue Service, and there can be no assurance that the Internal Revenue Service will not disagree with or challenge any of the consequences described below.

The following summary applies only to the Company's stockholders who hold shares of the Company's Common Stock (the "***Shares***") as capital assets. The summary below does not address all tax considerations that may be relevant to a particular Company stockholder in light of such holder's individual circumstances or to the Company's stockholders that may be subject to special treatment under U.S. federal income tax law (for example, (1) financial institutions, (2) investors in pass-through entities, (3) tax-exempt organizations, (4) non-U.S. individuals or entities and (5) the Company's stockholders who received their Shares through the exercise or conversion of options or otherwise as compensation). Furthermore, the following summary does not address alternative minimum taxes, estate and gift taxes, or any tax consequences under the laws of any state, local or foreign jurisdiction.

**THE TAX CONSEQUENCES OF THE MERGER TO YOU WILL DEPEND ON YOUR OWN PARTICULAR CIRCUMSTANCES. ACCORDINGLY, YOU SHOULD CONSULT YOUR OWN TAX ADVISORS REGARDING THE U.S. FEDERAL TAX CONSEQUENCES OF THE MERGER TO YOU IN LIGHT OF YOUR OWN PARTICULAR CIRCUMSTANCES, AS WELL AS THE EFFECT OF ANY STATE, LOCAL OR FOREIGN TAX LAWS.**

*General*

 

The Merger will be treated as a taxable sale of your Company Common Shares in exchange for the Closing Payment received by you. In general (and subject to the discussion below), you will recognize gain or loss in connection with the Merger equal to the difference between (i) your share of the Closing Payment and (ii) your adjusted tax basis in such Company Common Shares. Such gain or loss will constitute capital gain or loss, except that a portion of any payment of consideration due more than one (1) year after the Merger generally will be treated as imputed interest, taxable as ordinary income as described below. The capital gain or loss you recognize will be long term capital gain or loss if you held the Company Common Shares for more than one year immediately prior to the Effective Time of the Merger. Net long term capital gains of individuals are, under certain circumstances, taxed at lower rates than items of ordinary income. The deductibility of capital losses is subject to significant limitations. Gain or loss realized generally will be calculated separately for each block of Company Common Shares (*i.e.*, shares acquired at the same cost in a single transaction) surrendered in the Merger by you. Certain U.S. individuals, estates and trusts are subject to an additional 3.8% tax on net investment income, including gain from the disposition of the Company Common Shares.

*Installment Sale Rules*

 

Because you may receive payments after the end of 2022, you generally would be eligible to report gain realized from the Merger under the installment sale rules. In general, under the installment sale rules, your gain is reported periodically as payments (*i.e.*, pursuant to the Earnout Payments, if any) are received. Each payment of consideration that you receive generally will be treated as consisting of two components: (i) taxable gain on the sale of your Company Common Shares; and (ii) a partial tax-free return of your adjusted tax basis in the Company Common Shares. However, a portion of any payment due more than one (1) year after the Merger generally will be treated as imputed interest, taxable as ordinary income as described below.

In general, in determining the portion of each payment that is treated as a tax-free return of your adjusted tax basis, you must allocate your tax basis in your Company Common Shares between your share of the Closing Payment that you have a right to receive at the Effective Time and the portion of the Closing Payment that you receive thereafter on a ratable basis. For this purpose, you must assume that you will receive the maximum possible payment to which you may be entitled pursuant to any Earnout Payments. If the amount you actually receive pursuant to any Earnout Payments is less than such maximum amount (e.g., as a result of payments made in connection with claims for indemnification under Article 11 of the Merger Agreement), you could be required to recompute the balance of gain to be recognized or to recognize a loss to the extent of unrecovered basis.

A portion of the amount, if any, distributed to you pursuant to the Earnout Payments generally will be recharacterized as imputed interest, taxable as ordinary income. The portion of any such distribution that will be characterized as interest income will equal the excess of the total amount of the payment actually received over the present value of such payment as of the Effective Time of the Merger, computed using the appropriate applicable federal rate.

If you report gain under the installment sale method, you may be required to pay interest on the deferred tax liability. In general, to the extent that the total face amount of all installment obligations (pursuant to the Earnout Payments) held by you that arose during, and are outstanding at the close of, your taxable year that includes the Merger exceeds $5,000,000, interest is required to be paid to the Internal Revenue Service on the deferred tax liability attributable to that excess.

The installment method is not available to you if you will recognize a loss in the Merger or you affirmatively elect out of installment method treatment. You may elect out of the installment method by appropriately reporting the entire amount of gain realized on your U.S. federal income tax return for the taxable year in which the Merger occurs.

**THE INSTALLMENT SALE RULES ARE COMPLEX AND THEIR APPLICATION TO YOU WILL DEPEND ON YOUR PARTICULAR CIRCUMSTANCES. ACCORDINGLY, YOU SHOULD CONSULT WITH YOUR OWN TAX ADVISORS REGARDING YOUR ABILITY TO DEFER A PORTION OF GAIN REALIZED IN THE MERGER UNDER THE INSTALLMENT SALE RULES OF THE CODE, THE ISSUES THAT ARISE IN CONNECTION WITH SUCH DEFERRAL AND WHETHER TO ELECT OUT OF INSTALLMENT METHOD TREATMENT.**

*Tax on Net Investment Income*

 

A 3.8% net investment tax applies to certain net investment income earned by individuals, estates and trusts. For these purposes, net investment income generally includes gain recognized on the disposition of Company Common Shares. In the case of an individual, the tax will be imposed on the lesser of (i) the individual's net investment income or (ii) the amount by which the individual's modified adjusted gross income exceeds $250,000 (if the individual is married and filing jointly or a surviving spouse), $125,000 (if the individual is married and filing separately) or $200,000 (in any other case). In the case of an estate or trust, the tax will be imposed on the lesser of (i) undistributed net investment income or (ii) the excess adjusted gross income over the dollar amount at which the highest income tax bracket applicable to an estate or trust begins. Company Stockholders should consult their own tax advisors regarding the implications of this additional tax to their particular circumstances.

*Backup Withholding*

 

Payments in connection with the Merger may be subject to U.S. federal backup withholding tax, unless an exception applies under the applicable rules and regulations. Currently, the backup withholding tax rate is 28%. If backup withholding tax applies to you, you may use the amounts withheld as a refund or credit against your U.S. federal income tax liability, if certain information is provided to the Internal Revenue Service. To prevent backup withholding with respect to payments made in connection with the Merger, you must provide your correct taxpayer identification number and certify that you are not subject to backup withholding by completing the substitute Form W-9 included in the letter of transmittal.

**THE U.S. FEDERAL INCOME TAX DISCUSSION SET FORTH ABOVE IS INCLUDED FOR GENERAL INFORMATION PURPOSES ONLY AND IS NOT A COMPLETE ANALYSIS OR DISCUSSION OF ALL POTENTIAL TAX CONSEQUENCES RELEVANT TO COMPANY STOCKHOLDERS. COMPANY STOCKHOLDERS ARE STRONGLY URGED TO CONSULT THEIR OWN TAX ADVISORS TO DETERMINE THE FEDERAL, STATE, LOCAL AND FOREIGN TAX CONSEQUENCES OF THE MERGER TO THEM IN LIGHT OF THEIR OWN PARTICULAR CIRCUMSTANCES.**

**CERTAIN CANADIAN INCOME TAX CONSIDERATIONS**

The following is a summary of the principal Canadian federal income tax considerations under subsection 85(1) of the *Income Tax Act* (Canada) (THE "***Tax Act***") in respect of the Merger to the Company Stockholders who, for purposes of the Tax Act and at all relevant times (i) hold the Company Common Shares pursuant to the Merger as capital property, (ii) deals at arm's length with, and is not affiliated with, the Company, or the Purchaser, and (iii) is a resident of Canada or who is deemed to be a resident of Canada for purposes of the Tax Act (a "***Resident Holder***").

The Company Common Shares generally will be considered capital property to a Resident Holder for purposes of the Tax Act unless the Resident Holder holds such shares in the course of carrying on a business of buying and selling shares or the Resident Holder has acquired or holds such shares in a transaction or transactions considered to be an adventure or concern in the nature of trade.

This summary is based on the current provisions of the Tax Act in force as of the date of this Information Statement and the current published administrative policies and assessing practices of the Canada Revenue Agency (the "***CRA***") publicly available prior to the date of this Information Statement. This summary takes into account all specific proposals to amend the Tax Act that have been publicly announced by or on behalf of the Minister of Finance (Canada) prior to the date of this Information Statement (the "***Proposed Amendments***") and assumes that the Proposed Amendments will be enacted in the form proposed. No assurance can be given that the Proposed Amendments will be enacted in the form proposed, or at all. This summary does not otherwise take into account or anticipate any other changes in law, whether by judicial, governmental or legislative decision or action or changes in the administrative policies or assessing practices of the CRA, nor does it take into account other federal or any provincial, territorial or foreign income tax legislation or considerations, which may differ materially from those described in this summary.

This summary is not applicable to a Resident Holder (i) that is a "financial institution" for the purposes of the mark-to-market rules in the Tax Act, (ii) that is a "specified financial institution" (as defined in the Tax Act), (iii) an interest in which is, or whose Company Common Shares are, a "tax shelter investment" (as defined in the Tax Act), (iv) that has elected to determine its "Canadian tax results" in a currency other than Canadian currency pursuant to the "functional currency reporting" rules in the Tax Act, (v) that has entered into a "synthetic disposition agreement" (as defined in the Tax Act) or a "derivative forward agreement" (as defined in the Tax Act) with respect to the Shares, (vi) a person who is exempt from tax under Part I of the Tax Act or (vii) in relation to which the Company is a "foreign affiliate" (as defined in the Tax Act). Such Resident Holders should consult their own tax advisors.

**THIS SUMMARY IS NOT EXHAUSTIVE OF ALL CANADIAN FEDERAL INCOME TAX CONSIDERATIONS AND IS ONLY LIMITED TO A DISCUSSION OF THE APPLICATION OF SUBSECTION 85(1) OF THE TAX ACT. IT IS NOT INTENDED TO BE, AND SHOULD NOT BE CONSTRUED TO BE, LEGAL OR TAX ADVICE TO ANY PARTICULAR RESIDENT HOLDER. ACCORDINGLY, RESIDENT HOLDERS SHOULD CONSULT THEIR OWN TAX ADVISORS WITH RESPECT TO THE INCOME TAX CONSEQUENCES TO THEM OF THE MERGER UNDER FEDERAL, PROVINCIAL, TERRITORIAL AND OTHER APPLICABLE TAX LEGISLATION. THE DISCUSSION BELOW IS QUALIFIED ACCORDINGLY.**

A Resident Holder may obtain a full or partial deferral in respect of the exchange of the Company Common Shares under the Merger by filing with the CRA (and, where applicable, with a provincial tax authority) a joint election made by the Resident Holder and the Purchaser under subsection 85(1) of the Tax Act (or, in the case of a partnership, under subsection 85(2) of the Tax Act, provided all members of the partnership jointly elect) and the corresponding provisions of any applicable provincial tax legislation (collectively, the "***Section 85 Election***").

The availability and extent of the deferral will depend on the Elected Amount (as defined below) designated and the Resident Holder's adjusted cost base of the Shares at the time of the exchange, and is subject to the Section 85 Election requirements being met under the Tax Act.

A Resident Holder making a Section 85 Election will be required to designate an amount (the "***Elected Amount***") in the election form that will be deemed to be the proceeds of disposition of the Resident Holder's Shares at the time of exchange. In general, the Elected Amount may not be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) less than the lesser of (i)
 the Resident Holder's adjusted cost base of the Company Common Shares immediately before the time of the exchange, and (ii) the
 fair market value of the Company Coimmon Shares, at the time of the exchange; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) greater than the fair market value of the Company Common
 Shares at the time of the exchange.

The Canadian federal income tax treatment to a Resident Holder who properly makes a valid Section 85 Election generally will be as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Resident Holder will
 be deemed to have disposed of the Resident Holder's Company Common Shares for proceeds of disposition equal to the Elected Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to the extent that the Elected
 Amount exceeds the aggregate of the adjusted cost base of the Company Common Shares to the Resident Holder and any reasonable costs
 of disposition, the Resident Holder will in general realize a capital gain equal to such excess; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the aggregate cost to the
 Resident Holder of Payment Shares acquired as a result of the exchange will be equal to the Elected Amount, and such cost will be averaged
 with the adjusted cost base of all other Payment Shares held by the Resident Holder immediately prior to the exchange as capital property
 for the purpose of determining thereafter the adjusted cost base of each Payment Share held by such Resident Holder.

The Purchaser has agreed to make a Section 85 Election with a Resident Holder at the amount determined by such Resident Holder, subject to the limitations set out in subsection 85(1) or subsection 85(2), as applicable, of the Tax Act (or any applicable provincial tax legislation).

To make a Section 85 Election, a Resident Holder must provide two signed copies of the necessary joint election forms to an appointed representative, as directed by the Purchaser in the Letter of Transmittal, within 60 days after the Effective Time, duly completed with the details of the Shares transferred and the applicable agreed amount for the purposes of such joint elections.

The Purchaser shall, within 30 days after receiving the completed joint election forms from a Resident Holder, and subject to such joint election forms being correct and complete and in compliance with requirements imposed under the Tax Act (or any analogous provision of provincial income tax law), sign and return such forms to such Resident Holder. Each Resident Holder is solely responsible for ensuring the Section 85 Election is completed correctly and filed with the CRA (and any applicable provincial tax authority) by the required deadline. In its sole discretion, the Purchaser or any successor corporation may choose to sign and return a joint election form received by it more than 60 days following the Effective Time but will have no obligation to do so.

Neither the Company, the Purchaser nor any successor corporation shall be responsible for the proper completion and filing of any joint election form, except for the obligation to sign and return the duly completed joint election forms which are received within 60 days of the Effective Time. The Resident Holder will be solely responsible for the payment of any taxes, interest or penalties arising as a result of the failure of a Resident Holder to properly or timely complete and file such joint election forms in the form and manner prescribed by the Tax Act (or any applicable provincial legislation).

**Any Resident Holder who does not ensure that information necessary to make a Section 85 Election has been received by the Purchaser within the time period noted above may not be able to benefit from the tax deferral provisions in subsections 85(1) or 85(2) of the Tax Act (or the corresponding provisions of any applicable provincial tax legislation). Accordingly, all Resident Holders who wish to make a Section 85 Election with the Purchaser should give their immediate attention to this matter**

**RISK FACTORS**

*Except for historical information contained herein or therein, this Information Statement, as well as information incorporated by reference, contains forward-looking statements that involve risks and uncertainties. In the judgment of the Company, the following factors should be considered carefully by each Company stockholder, in addition to the other information provided elsewhere or incorporated by reference in this Information Statement, in evaluating whether to vote for the Merger.*

 

**Failure to complete the Merger could negatively affect the Company and handicap its ability to enter into alternative transactions**.

The fees and expenses incurred by the Company in connection with the Merger are significant, and were not originally factored into the Company's 2021 operating plan. In addition, the Company's management has spent considerable time negotiating the terms and conditions of the Merger, at the expense of other business activities. Should the Merger not be consummated, the Company will need to pay its Merger related fees and expenses, which will substantially reduce the Company's cash available to address its operating plan. Further, the Company believes its business will suffer due to the reduced management resources it has directed at ongoing business activities.

Further, if the Merger is terminated and the Company determines to seek another merger or business combination, there can be no assurance that it will be able to find a partner at an attractive price. In addition, while the Merger Agreement is in effect, the Company is prohibited from directly or indirectly soliciting, initiating or encouraging or entering into a merger, consolidation, purchase of assets, or other business combination with any party. As a result of this prohibition, the Company will be precluded from discussing alternative proposals during the term of the Merger Agreement, and may lose an opportunity for a transaction with another potential partner at a favorable price if the Merger is not completed.

**The directors and officers of the Company and its subsidiaries may have interests different from the interests of the stockholders that could have affected their decision to support the Merger.**

To the extent that the interests of the directors and executive officers of the Company and its subsidiaries in the Merger are potentially different from, or are in addition to, those of the Company stockholders, such interests could have affected the directors' and executive officers' decision to support or approve the Merger. These interests include: (a) financial compensation from the Merger; (b) ongoing employment arrangements with the Purchaser for certain of the Company's and its subsidiaries' employees, directors and officers; and (c) additional equity compensation and bonuses pursuant to plans to be established following the Closing. As a result of these interests, these directors and officers may be more likely to recommend that you approve the Merger than if they did not have these interests. Please refer to the section captioned "*Interests of the Company Board and Management*" beginning on page 28 for more information.

**The Merger may not be consummated if either one or both of the parties does not fulfill its respective conditions to closing the Merger.**

Pursuant to the Merger Agreement, each of the Company, Purchaser and Merger Sub are required to fulfill certain requirements as a precondition to effecting the Merger. If any of the Company, Purchaser and Merger Sub does not meet its respective closing conditions, the parties may decide not to consummate the Merger.

**If the Merger is not completed, the Company will need to raise additional funds to support its presently anticipated capital requirements.**

If the Merger is not completed, the Company will be required to seek additional outside funding to meet its capital requirements. This additional financing may not be available on terms favorable to the Company or at all. If adequate funds are not available or are not available on acceptable terms, the Company may not be able to complete development of or enhance its products or services or respond to customer requirements or competitive pressures, which could harm its business. In addition, if the Company continues to raise capital through the sale of equity securities, stockholders' percentage ownership of the Company may be reduced. Furthermore, these equity securities may have rights, preferences or privileges senior to those of the Common Stock. If the Company raises additional funds through the sale of debt, the holders of debt will have priority over the holders of Common Stock in any liquidation.

**Failure to complete the Merger could negatively affect the Company and its operating results.**

If the Merger is not completed for any reason, the Company may be subject to a number of material risks, including costs related to the Merger, such as legal fees, which must be paid even if the Merger is not completed, thereby negatively affecting the Company's operating results. Any public announcement of the Merger could strain the Company's partner and business relationships. If the Company's business partners learn about the Merger and the Merger is ultimately not completed, it could cause a lack of confidence in the Company and place strain on the Company's business relationships.

**Failure to complete the merger may have an adverse impact on the growth of the Company as a stand-alone entity.**

If the Merger does not receive the required votes of the Company's stockholders to accomplish the transaction, the Company will continue as a stand-alone entity. Remaining a stand-alone entity could have important consequences to the Company, including but not limited to the following: (i) the markets in which the Company competes and seeks to compete are subject to frequent new product and branded introductions, changing customer preferences for new products; (ii) the Company faces intense competition from both established and start-up companies offering cannabis products and similar to those of the Company; (iii) existing and potential competitors may have substantially greater financial, marketing and distribution resources than the Company; and (iv) current and potential competitors may establish cooperative relationships among themselves or with third parties to compete more effectively against the Company.

**OTHER ANCILLARY AGREEMENTS**

Pursuant to the terms of the Merger Agreement, all Company Stockholders will be required to deliver to the Purchaser certain additional documents as described below:

**Accredited Investor Certification**

All Company Stockholders will be required to execute and deliver to the Purchaser an Accredited Investor Certification, in substantially the form attached as **<u>Exhibit C</u>** hereto, prior, and as a condition, to receiving any consideration in the Merger. The Merger has been specifically negotiated and designed only for the participation of "accredited investors", as defined in Rule 502 promulgated under the 1933 Act. The Company has previously confirmed, and the Purchaser is relying upon the representation, that all Company Stockholders are currently "accredited investors". The Accredited Investor Certification certifies to the Purchaser that, as of the date such Company Stockholder approved the Merger, such Company Stockholder was an "accredited investor".

**Letter of Transmittal**

All Company Stockholders will be required to execute and deliver to the Purchaser a Letter of Transmittal, which will be provided prior to or after the Closing, prior, and as a condition, to receiving any consideration in the Merger. The Letter of Transmittal must also be accompanied by a duly executed and completed IRS Form W-9 or W-8BEN, as applicable, together with a duly executed Accredited Investor Certificate to the extent not previously delivered. The Letter of Transmittal will effectively surrender each Company Stockholders' respective shares of Company capital stock to Purchaser upon Closing of the Merger in exchange for such Company Stockholders' respective potion of the Merger consideration.

**RESTRICTIONS ON TRANSFER OF PURCHASER COMMON SHARES**

All Purchaser Common Shares you receive as a portion of your Merger consideration will be subject to restrictions imposed by the SEC and the terms of the Merger Agreement.

**The 1933 Act**

Any Purchaser Common Shares you receive as a portion of your Merger consideration will not have been registered with the SEC under the 1933 Act, but instead will be issued under an exemption or exemptions from the registration and qualification requirements of the 1933 Act and applicable law. Purchaser Common Shares may not be resold unless and until such time as the Purchaser Common Shares are registered with the SEC and qualified by state authorities, or an exemption from such registration and qualification requirements is available.

**Lock-Up Restrictions**

Pursuant to the terms and conditions of the Merger Agreement, all Purchaser Common Shares issuable upon Closing (the "***Payment Shares***") will be subject to restrictions on transfer that prohibit all Company Shareholders from transferring or selling such Payment Shares so received in the Merger during the restrictive period (the "***Restriction Period***") as set forth below:

---

| | |
|:---|:---|
| **Percentage of**<br> **Payment Shares** | **Restriction Period**<br> **(Months following the Closing)** |
| <br> 12.5% | <br> 12 |
| 12.5% | 15 |
| 12.5% | 18 |
| 12.5% | 21 |
| 12.5% | 24 |
| 12.5% | 27 |
| 12.5% | 30 |
| 12.5% | 33 |

---

All certificates issued to Company Shareholders evidencing any Payment Shares shall bear a restrictive legend, and all such Payment Shares held in book entry shall bear a restrictive notation, with respect to the Restricted Period and non-transferability of the Payment Shares subject thereto.

**DISSENTER'S RIGHTS**

If the Merger occurs, the Company's Stockholders who do not vote their shares of the Company's Common Stock in favor of the Merger may, under certain conditions, become entitled to be paid cash for their shares of the Company's Common Stock in lieu of receiving the consideration in the Merger pursuant to the Merger Agreement. **As previously discussed above, any Company Stockholders that are a party to either the Voting Agreement or the Stockholders Agreement are required to vote in favor of the Transaction and the Merger, and are therefore ineligible to exercise the rights discussed below**.

The Merger Agreement provides that Company Common Shares that are issued and outstanding immediately prior to the Effective Time and that are held by a stockholder who has not voted in favor of the Merger or consented to the Merger in writing and who has delivered a demand properly in writing in the manner provided in Chapter 92A.300 et seq. of the Nevada Revised Statutes and who, as of the Effective Time, has not effectively withdrawn or lost such right to dissenters' rights ("***Dissenting Shares***") will not be canceled, extinguished and, if applicable, converted into or represent a right to receive the Merger Consideration pursuant to the Merger Agreement, but instead will be entitled only to receive such consideration as is determined to be due with respect to such Dissenting Shares in accordance with the provisions Chapter 92A.300 et seq. of the Nevada Revised Statutes, and upon payment of such amount, such Dissenting Shares shall be deemed cancelled. Each holder of Dissenting Shares who becomes entitled to payment for such shares pursuant to Chapter 92A.300 et seq. of the Nevada Revised Statutes will receive payment from the Surviving Corporation in accordance with Nevada law; provided, however, that if any such holder of Dissenting Shares will have effectively withdrawn such holder's demand for appraisal of such shares or lost such holder's right to appraisal and payment of such shares under Chapter 92A.300 et seq. of the Nevada Revised Statutes, such holder will forfeit the right to appraisal of such shares and each such share will thereupon be deemed to have been canceled, extinguished and, if applicable, converted, as of the Effective Time, into and represent the right to receive distribution from the Surviving Corporation of the Merger Consideration.

**Dissenters Rights Under Nevada Law**

When the Merger becomes effective, stockholders of the Company who comply with the procedures prescribed in Chapter 92A.300 et seq. of the Nevada Revised Statutes ("***Section 92A.300***"), will potentially be entitled to a judicial appraisal of the fair value of their shares, exclusive of any element of value arising from the accomplishment or expectation of the Merger, and to receive from the surviving company payment of the fair value of their shares.

The following is a brief summary of the statutory procedures that must be followed by a stockholder of the Company in order to perfect dissenters' rights under Nevada law. This summary is not intended to be complete and is qualified in its entirety by reference to Section 92A.300, the text of which is included as **<u>Exhibit D</u>** to this Information Statement. We advise any Company Stockholder considering demanding appraisal to consult legal counsel.

In order to exercise dissenters' rights under Nevada law, a stockholder must be the stockholder of record of the shares of the Company's Common Stock as to which dissenters' rights are to be exercised on the date that the written demand for appraisal described below is made, and the stockholder must continuously hold such shares through the effective time of the Merger.

The Company's stockholders electing to exercise their dissenters' rights under Section 92A.300 must not vote in favor of approval of the Merger. A vote by a Company stockholder against approval of the Merger is not required in order for that stockholder to exercise dissenters' rights.

A record owner who holds Company Common Shares as a nominee for other beneficial owners of the shares may exercise appraisal rights with respect to the Company Common Shares held for all or less than all beneficial owners of the Company's Common Stock for which the holder is the record owner. In that case, the written demand must state the number of shares of Company's Common Stock covered by the demand. Where the number of shares of the Company's Common Stock is not expressly stated, the demand will be presumed to cover all shares of the Company's Common Stock outstanding in the name of that record owner. Beneficial owners who are not record owners and who intend to exercise dissenters' rights should instruct the record owner to comply strictly with the statutory requirements with respect to the delivery of written demand prior to the taking of the vote on the Merger.

Each Company stockholder of record who is eligible to exercise dissenters' rights under Nevada law and who has timely delivered a written demand to the Company and not voted for approval of the Merger will be referred to in this section as a dissenting stockholder.

Any Company stockholder who elects to exercise dissenters' rights must deliver the written demand to:

Leef Holdings Inc.

Attn: Chief Executive Officer

5580 La Jolla Boulevard #395

La Jolla, CA 92037

With a copy to:

Jackson Tidus, A Law Corporation

Attn: Jason R. Wisniewski, Esq.

2030 Main Street, 12<sup>th</sup> Floor

Irvine, CA 92614

The written demand must be in the form attached to this Information Statement as **<u>Exhibit E</u>** ("***Form of Demand***"). The Form of Demand must be received within thirty (30) days of the date of this Information Statement, or February 26, 2022 (the "***Deadline***"). If the Form of Demand is not received on or prior to the Deadline, the stockholder's rights to dissent shall be deemed waived. Additionally, the Form of Demand must be completely filled out and should specify the stockholder's name and mailing address, the number of Company Common Shares covered by the demand, a certification of the date on which the stockholder acquired record ownership of such shares and should state that the stockholder is thereby demanding appraisal of such stockholder's Company Common Shares in accordance with Section 92A.300. A proxy or vote against the Merger shall not constitute a written demand for appraisal. The Company shall place appropriate stock transfer restrictions on all uncertificated Company Common Shares that are Dissenting Shares.

Within thirty (30) days of receipt of a written demand for dissenters' rights under Section 92A.300, the Company shall pay to such holder of Dissenting Shares in cash the estimated fair market value of such Dissenting Shares as determined by the Company, plus accrued interest. The payment shall include (a) a copy of the dissenting stockholders' written demand, (b) the Company's financial statements for the fiscal year in question, (c) a statement setting forth the Company's estimation of the fair market value of such Dissenting Shares and (d) a statement that unless such holder of Dissenting Shares notifies the Company within thirty (30) days that such holder is dissatisfied with such payment that such payment shall be deemed accepted in full satisfaction of the Company's obligations to the holder of Dissenting Shares under Section 92A.300. If a holder of Dissenting Shares is dissatisfied with the determination of fair value and corresponding payment of the Company for the Dissenting Shares, such stockholder must notify the Company in writing of such fact within thirty (30) days and set forth such stockholder's determination of fair value for such Dissenting Shares.

If the Company and the holder of Dissenting Shares are unable to settle on the payment for such Dissenting Shares, the Company shall have sixty (60) days after receiving such demand from the holder of Dissenting Shares to file a petition in with the Nevada district court to determine the fair value of such Dissenting Shares.

Any stockholder who fails to comply with the requirements of Chapter 92A.300 et seq. of the Nevada Revised Statutes, attached as **<u>Exhibit D</u>** to this Information Statement will forfeit his, her or its rights to dissent from the Merger and will receive his, her or its portion of the Closing Payment, if any.

**INTERESTS OF THE COMPANY BOARD AND MANAGEMENT**

In considering the recommendation of the Company Board with respect to the Merger Agreement, the Merger and the transactions contemplated thereby, you should be aware that members of the Company Board, and certain members of the Company's management, may have interests in such matters that are different from, or in addition to, your interests. The Company Board was aware of these interests and considered them, among other matters, in approving each such matter.

The following descriptions of the members of the Company Board and certain members of the Company's management may be relevant to you in evaluating their recommendation to approve the Merger Agreement, the Merger and the transactions contemplated thereby.

*Micah Anderson*. Mr. Anderson is the Chief Executive Officer and a member of the Company Board, as well as a director, officer and/or manager, as applicable, of each of the Company's subsidiaries. In addition to his financial interests in the Company as a holder of Company capital stock, Mr. Anderson will also receive the following additional financial benefits from the Merger:

In connection with the Merger, Mr. Anderson will enter into a three year employment agreement with the Purchaser effective upon Closing, pursuant to which he will serve as the Chief Executive Officer of the Company. Under the terms of his employment agreement, Mr. Anderson will receive an annual base salary of $250,000.00 per year, subject to annual review by Purchaser's Board of Directors, an annual performance bonus of up to 100% of his annual base salary contingent upon satisfaction of certain performance milestones to be stablished by the Purchaser. In connection with his employment and travel, Mr. Anderson will be entitled to receive up to $2,000 per month for reimbursements in connection with housing, transportation and related expenses, as well as $1,000 per month for an automobile allowance. Mr. Anderson will also be entitled to reimbursement of personal business expenses and may also participate in all benefit plans afforded to other employees and executives of Purchaser. The Purchaser will also reimburse Mr. Anderson up to $5,000 per month for the purchase of health insurance and will cover the cost of a life insurance policy with a death benefit of $1,000,000 payable to Mr. Anderson's designated beneficiaries. Upon closing of the Merger, the Purchaser will also grant to Mr. Anderson options to purchase up to 4,200,000 Purchaser Common Shares with an exercise price equal to the fair market value of Purchaser's Common Shares as of the grant date. In the event Mr. Anderson's employment is terminated by the Purchaser for any reason other than cause, death or disability, or by Mr. Anderson for good reason, he will be entitled to twenty-four (24) months of severance paid in a single lump sum, and the pro rata portion of any performance bonus earned as of the date of termination in a single lump sum. In addition to Mr. Anderson's compensation, he will also be entitled to receive an amount of Purchaser Common Shares in an amount equal to any Purchaser Common Shares issuable as Earnout Payments in the Merger, which such shares Mr. Anderson shall be entitled to award and distributed to Company employees as performance incentive compensation.

**<u>EXHIBIT A</u>**

**MERGER AGREEMENT**

**(Disclosure Letter and Exhibits Omitted)**

**(attached hereto)**

**MERGER AGREEMENT**

Made as of

Between

**ICANIC BRANDS COMPANY INC.**

(the "**Purchaser**")

and

**LEEF HOLDINGS, INC.**

(the "**Company**")

and

**ICANIC MERGER SUB, INC.**

("**Subco**")

and

**MICAH ANDERSON**

(the "**Stockholders Representative**")

MERGER AGREEMENT

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| ARTICLE 1 DEFINITIONS | 1 |
| Section 1.1 Definitions | 1 |
| ARTICLE 2 ACQUISITION | 11 |
| Section 2.1 Agreement to Merge | 11 |
| Section 2.2 Merger Events | 11 |
| Section 2.3 Payment of Consideration and Exchange Procedures | 12 |
| Section 2.4 Legending of Payment Shares | 14 |
| Section 2.5 Merged Corporation | 14 |
| Section 2.6 Fractional Shares | 14 |
| Section 2.7 Dissenting Shares | 14 |
| Section 2.8 Effect of Merger | 15 |
| Section 2.9 Filing of Articles of Merger. | 15 |
| Section 2.10 Earn-Out Payments | 15 |
| Section 2.11 Review of Earn-Out Payment Certificate | 16 |
| Section 2.12 Dispute Settlement | 17 |
| Section 2.13 Reasonable Cooperation. | 18 |
| Section 2.14 Canadian Tax Treatment | 18 |
| Section 2.15 Company Debentures | 18 |
| ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF PURCHASER | 19 |
| Section 3.1 Representations and Warranties of Purchaser | 19 |
| ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE COMPANY | 27 |
| Section 4.1 Representations and Warranties of the Company | 27 |
| ARTICLE 5 STOCKHOLDERS REPRESENTATIVE | 33 |
| Section 5.1 Stockholders Representative. | 33 |
| Section 5.2 Indemnification of Stockholders Representative | 35 |
| ARTICLE 6 COVENANTS OF THE COMPANY | 36 |
| Section 6.1 Necessary Consents. | 36 |
| Section 6.2 Conduct of Business of the Company | 36 |
| Section 6.3 All Other Action | 39 |
| Section 6.4 Updated Company Disclosure Letter | 39 |
| Section 6.5 Company Capitalization Spreadsheet. | 39 |
| Section 6.6 Company Information Statement | 39 |
| Section 6.7 Audited Company Financial Statements | 39 |
| Section 6.8 Notices of Certain Events | 40 |
| ARTICLE 7 COVENANTS OF PURCHASER | 40 |
| Section 7.1 Necessary Consents. | 40 |
| Section 7.2 Non-Solicitation | 40 |
| Section 7.3 Conduct of Business of the Purchaser | 41 |
| Section 7.4 Reasonable Best Efforts | 43 |
| Section 7.5 Notices of Certain Events | 43 |

---

MERGER AGREEMENT

---

| | |
|:---|:---|
| Section 7.6 Subco | 43.0 |
| Section 7.7 Stockholder Approval. | 44.0 |
| Section 7.8 Warrant Exercise Price | 44.0 |
| Section 7.9 Further Assurances | 44.0 |
| Section 7.10 Updated Purchaser Disclosure Letter | 44.0 |
| ARTICLE 8 CONDITIONS PRECEDENT | 45.0 |
| Section 8.1 Conditions for the Benefit of Purchaser | 45.0 |
| Section 8.2 Conditions for the Benefit of the Company | 46.0 |
| ARTICLE 9 CLOSING | 48.0 |
| Section 9.1 Time of Closing | 48.0 |
| Section 9.2 Company Closing Documents | 48.0 |
| Section 9.3 Purchaser's Closing Documents | 49.0 |
| ARTICLE 10 TERMINATION | 50.0 |
| Section 10.1 Termination | 50.0 |
| Section 10.2 Notice and Effect of Termination. | 51.0 |
| ARTICLE 11 INDEMNIFICATION | 51.0 |
| Section 11.1 Indemnification by the Company Stockholders | 51.0 |
| Section 11.2 Indemnification by Purchaser. | 52.0 |
| Section 11.3 Survival of Representations and Warranties | 52.0 |
| Section 11.4 Limitation on Indemnification | 53.0 |
| Section 11.5 Indemnification Procedure | 54.0 |
| Section 11.6 Remedies | 55.0 |
| Section 11.7 Adjustment to Purchase Price | 56.0 |
| Section 11.8 Right to Bring Actions; No Contribution. | 56.0 |
| Section 11.9 Set-Off | 56.0 |
| ARTICLE 12 GENERAL | 57.0 |
| Section 12.1 Confidential Information; Press Release | 57.0 |
| Section 12.2 Counterparts | 58.0 |
| Section 12.3 Severability | 58.0 |
| Section 12.4 Applicable Law; Jurisdiction; Venue | 58.0 |
| Section 12.5 Arbitration | 59.0 |
| Section 12.6 Disclosure Schedule | 59.0 |
| Section 12.7 Successors and Assigns. | 59.0 |
| Section 12.8 Interpretation. | 59.0 |
| Section 12.9 Expenses. | 60.0 |
| Section 12.10 Specific Enforcement | 60.0 |
| Section 12.11 Further Assurances | 60.0 |
| Section 12.12 Entire Agreement | 60.0 |
| Section 12.13 Notices | 61.0 |
| Section 12.14 Waiver. | 62.0 |
| Section 12.15 Amendments | 62.0 |
| Section 12.16 Remedies Cumulative | 62.0 |
| Section 12.17 Currency. | 62.0 |
| Section 12.18 Number and Gender | 62.0 |
| Section 12.19 Time of Essence. | 62.0 |

---

**Exhibits and Appendix**

---

| | |
|:---|:---|
| Exhibit A | Form of Accredited Investor Certification |
| Exhibit B | Form of Employment Agreement<br>|
| Exhibit C | Lock-Up Agreement<br>|
| Exhibit D | Legending of Payment Shares |
| Appendix I | Earn-Out Example<br>|

---

MERGER AGREEMENT

**MERGER AGREEMENT**

This Agreement is entered into on January 21, 2022 by and among Icanic Brands Company Inc. (the "**Purchaser**"), a company incorporated pursuant to the *Business Corporations Act* (British Columbia), LEEF Holdings, Inc. (the "**Company**"), a Nevada corporation, Icanic Merger Sub, Inc., a Nevada corporation ("**Subco**"), and Micah Anderson, solely in his capacity as representative of the Company Stockholders (the "**Stockholders Representative**"). Defined terms used herein have the meaning set forth in Section 1.1.

To the extent possible under the Tax Act, the Parties intend that for Canadian federal income purposes, an Eligible Holder shall be entitled to make a joint income tax election, pursuant to section 85 of the Tax Act (and any analogous provision of provincial income tax law), to have the Eligible Holder's disposition of their Company Common Shares pursuant to the Merger occur on a full or partial rollover basis.

Now, therefore, in consideration of the premises and the mutual promises herein made, and in consideration of the representations, warranties and covenants herein contained, the Parties agree as follows:

**ARTICLE 1**

**DEFINITIONS**

**Section 1.1 Definitions**

In this Agreement (including the preamble, recitals and each Schedule hereto), the following terms have the meanings ascribed thereto as follows:

(1) "**Accredited Investor**" means an accredited investor as defined in Rule 501(a) under the U.S. Securities Act.

(2) "**Accredited Investor Certification**" means the Accredited Investor Certification, in substantially the form attached hereto as Exhibit A.

(3) "**Acquisition**" means the acquisition of the Company by Purchaser effected through the Merger.

(4) "**Affiliate**" has the meaning ascribed thereto in the BCBCA.

(5) "**Aggregate Company Shares Deemed Outstanding**" means the aggregate number of Company Common Shares issued and outstanding as of immediately prior to the Effective Time.

(6) "**Agreement**" means this Agreement and any instrument supplemental or ancillary hereto; and the expressions "**Article**", "**Section**", and "**subsection**" followed by a number means and refer to the specified Article, section or subsection of this Agreement.

(7) "**Ancillary Agreements**" means all agreements, certificates and other instruments delivered or given pursuant to this Agreement, including without limitation the Employment Agreement.

(8) "**Applicable Money Laundering Laws**" has the meaning ascribed thereto in Section 3.1(mm).

(9) "**Applicable Securities Laws**" means applicable securities legislation, securities regulation and securities rules, as amended, and the policies, notices, instruments and blanket orders having the force of law, in force from time to time.

(10) "**Arbitration**" has the meaning ascribed thereto in Section 12.5(a).

(11) "**Arbitrator**" has the meaning ascribed thereto in Section 12.5(a).

(12) "**Articles of Merger**" means the Articles of Merger as required pursuant to Section 92A.200 of the NRS to be filed with the Secretary of Sate of the State of Nevada to effect the Merger.

(13) "**Basket**" has the meaning ascribed thereto in Section 11.4(a).

(14) **"BCBCA"** means *Business Corporations Act* (British Columbia).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15) "**BCC License**" means each and all Cannabis Licenses issued to the Company and its Subsidiaries by the State of California Bureau of Cannabis Control, as required for, or in connection with, the Company's business operations.

(16) "**Business Day**" means any day, other than a Saturday, Sunday or statutory holiday in Vancouver, British Columbia or in the State of California, United States.

(17) "**Cannabis License**" means any temporary, provisional or permanent permit, license, registration, variance, clearance, consent, commission, franchise, exemption, order, authorization, or approval from any Governmental Authority that regulates the cultivation, manufacture, processing, marketing, sale or distribution of cannabis products, whether for medical or recreational use, including but not limited to the annual cannabis license issued by the State of California (including by the Bureau of Cannabis Control, the California Department of Food and Agriculture or the California Department of Public Health, as applicable).

(18) "**Cash**" means the consolidated amount of cash and cash equivalents of the Purchaser, as defined by and determined in accordance with IFRS and shall also include any funds advanced to the Company with respect to the Company's cannabis manufacturing facility located in Arvin, California, including the Loan; provided, however, Cash shall (a) not include (i) any Restricted Cash or (ii) cash and cash equivalents in respect of uncollected accounts receivable (other than the Loan) and (b) be calculated net of any amounts required to cover wire transfers, automated clearing house transactions, checks and similar instruments issued by the Company which have not cleared.

(19) "**Claim**" means any claim, action, audit, suit, assessment, arbitration, mediation, litigation, demand, inquiry, governmental charge, order, hearing or any proceeding or investigation, in each case that is by or before any Governmental Authority, whether civil, criminal, investigative, informal, administrative or otherwise.

(20) "**Closing**" means the completion of the Acquisition in accordance with the terms and conditions of this Agreement.

(21) "**Closing Date**" means the Business Day on which all conditions set forth in Article 8 (other than those conditions that by their nature are to be satisfied or waived at the Closing, but subject to the satisfaction or waiver of those conditions) are satisfied or waived or such other Business Day as the Parties may agree to in writing.

(22) "**Closing Payment**" has the meaning ascribed thereto in Section 2.2(a)(i).

(23) "**Closing Press Release**" has the meaning ascribed thereto in Section 12.1(b)(ii).

(24) "**Code**" means the United States Internal Revenue Code of 1986, as amended.

(25) "**Company**" means LEEF Holdings, Inc., a corporation incorporated under the laws of Nevada.

(26) "**Company Auditors**" means MGO.

(27) "**Company Capitalization Spreadsheet**" means the spreadsheet delivered at Closing setting out the outstanding share capital of the Company, including the issued and outstanding Company Common Shares, Company Options, Company Warrants and Company Debentures, together with the address of record of each such holder.

(28) "**Company Common Shares**" means the shares of common stock of the Company, $0.001 par value per share.

(29) "**Company Debentures**" means each of the outstanding 9% Convertible Senior Secured Debentures due June 6, 2022 issued pursuant to the Company Indenture.

(30) "**Company Disclosure Letter**" means the disclosure letter dated as of the date hereof delivered by the Company to Purchaser prior to the execution and delivery of this Agreement.

(31) "**Company Financial Statements**" means (i) the unaudited income statement for the years ended December 31, 2019 and 2020 and for the five month period ended May 31, 2021, (ii) the unaudited statement of financial position as at December 31, 2019, December 31, 2020 and May 31, 2021, (iii) the unaudited statement of cash flows for the year ended December 31, 2020 and for the five month period ended May 31, 2021, and (iv) the unaudited statement of changes in equity as at December 31, 2020.

(32) "**Company Fundamental Representations**" shall mean the representations of the Company set forth in Section 4.1(a), (b), (f), (g), (h) and (m).

(33) "**Company Indenture**" means that certain Indenture dated June 6, 2019 by and among the Company and Odyssey Trust Company, as both Trustee and Collateral Agent thereunder.

(34) "**Company Key Personnel**" means each officer and director of the Company.

(35) "**Company Options**" means the outstanding stock options of the Company, as set forth in the Company Capitalization Spreadsheet, with each such option entitling the holder thereof to acquire the number of Company Common Shares set forth beside such holder's name on the Company Capitalization Spreadsheet, subject to adjustments, pursuant to the terms of the applicable option agreement.

(36) "**Company Revenue**" means the sum of (i) all Direct Revenue plus (ii) all Referred Revenue.

(37) "**Company Stockholder Indemnified Persons**" has the meaning ascribed thereto in Section 11.2.

(38) "**Company Stockholders**" means holders of the Company Common Shares.

(39) "**Company Warrants**" means common share purchase warrants of the Company, each entitling the holder thereof to acquire the number of Company Common Shares set forth beside such holder's name on the Company Capitalization Spreadsheet.

(40) "**Confidential Information**" means any information concerning the Company or Purchaser (the "**Disclosing Party**") or its business, properties and assets made available to the other party or its representatives (the "**Receiving Party**"); provided that it does not include information which (i) is generally available to or known by the public other than as a result of improper disclosure by the Receiving Party or pursuant to a breach of Section 12.1 by the Receiving Party, or (ii) is obtained by the Receiving Party from a source other than the Disclosing Party, provided that (to the reasonable knowledge of the Receiving Party) such source was not bound by a duty of confidentiality to the Disclosing Party or another party with respect to such information.

(41) "**Contract**" means, with respect to a Person, any contract, instrument, permit, concession, licence, loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, partnership or joint venture agreement or other legally binding agreement, arrangement or understanding, whether written or oral, to which the Person is a party or by which, to the knowledge of such Person, the Person or its property and assets is bound or affected.

(42) **"CSE"** means the Canadian Securities Exchange.

(43) "**Depositary**" means National Securities Administrators Ltd. or any other trust company, bank or other financial institution agreed to in writing by the Company and the Purchaser for the purpose of, among other things, exchanging certificates representing Company Common Shares for the Resulting Issuer Common Shares in connection with the Merger.

(44) "**Direct Revenue**" means the revenue of the Company and each of its Subsidiaries.

(45) "**Dissenting Shares**" means any Company Common Shares that are held by a Company Stockholder immediately prior to the Effective Time and in respect of which appraisal rights have been perfected in accordance with the NRS in connection with the Merger and have not been effectively withdrawn or lost (through failure to perfect or otherwise).

(46) "**DRS**" means the Direct Registration System of the Purchaser's transfer agent for Resulting Issuer Common Shares.

(47) "**Earn-Out Payments**" means collectively, the First Earn-Out Payment, the Second Earn-Out Payment and the Third Earn-Out Payment, and "**Earn-Out Payment**" means any one of them.

(48) "**Earn-Out Payments Certificate**" has the meaning ascribed thereto in Section 2.10.

(49) "**Earn-Out Payments Certificate Objection**" has the meaning ascribed thereto in Section 2.10.

(50) "**Earn-Out Payments Firm**" has the meaning ascribed thereto in Section 2.12.

(51) "**Effective Date**" means the day on which the Effective Time of the Merger occurs.

(52) "**Effective Time**" means the time of acceptance by the Secretary of State of the State of Nevada of the Articles of Merger in accordance with Section 92A.200 of the NRS or such later time as may be agreed to by the Parties and set forth in such filing for the effectiveness of the Merger.

(53) "**Eligible Holder**" means a beneficial owner of Company Common Shares immediately prior to the Effective Time (other than with respect to Dissenting Shares) who is: (a) a resident of Canada for purposes of the Tax Act (other than a Tax Exempt Person) or (b) a partnership any member of which is a resident of Canada for the purposes of the Tax Act (other than a Tax Exempt Person).

(54) "**Employee**" means an officer or employee of the Company, Purchaser or Subco.

(55) "**Employee Plan**" has the meaning ascribed thereto in Section 3.1(dd).

(56) "**Employment Agreement**" means the form of Employment Agreement, in substantially the form attached hereto as Exhibit B.

(57) "**Environmental Laws**" means all Laws relating to workplace safety or health, pollution or protection of the environment, including without limitation, laws relating to the exposure to, or Releases or threatened Releases of, hazardous materials, substances or wastes as the foregoing are enacted or in effect on or prior to Closing.

(58) "**Escrow Agreement**" means that certain escrow agreement to be dated as of the Closing Date, and substantially in the form agreed to by the Purchaser and Leef as of the date hereof, pursuant to which the Purchaser Common Shares issuable to Mark Smith under the Smith Employment Agreement shall be deposited.

(59) "**Exchange Ratio**" means an amount equal to the number of Payment Shares divided by the Aggregate Company Shares Deemed Outstanding (as shown on the Company Capitalization Spreadsheet), but excluding any Dissenting Shares.

(60) "**Expiration Date**" has the meaning ascribed thereto in Section 11.3(a).

(61) "**First Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(a).

(62) "**First Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(a).

(63) "**Fraud**" means common law fraud that is committed with actual (as opposed to imputed or constructive) knowledge of falsity and with the intention to deceive or mislead (as opposed to reckless indifference to the truth) another who is relying thereon (excluding, for the avoidance of doubt, any theory of fraud premised upon recklessness or gross negligence).

(64) "**Fundamental Representations**" means the Company Fundamental Representations and the Purchaser Fundamental Representations;

(65) "**GAAP**" means United States Generally Accepted Accounting Principles.

(66) "**Governmental Authority**" means and includes, without limitation, any national, federal government, province, state, municipality or other political subdivision of any of the foregoing, any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government and any corporation or other entity owned or controlled (through stock or capital ownership or otherwise) by any of the foregoing, including the CSE.

(67) "**Hazardous Materials**" means any materials or substances or wastes as to which liability or standards of conduct may be imposed under any Environmental Law.

 

 

(68) **"IFRS"** means International Financial Reporting Standards.

(69) "**include**" or "**including**" shall be deemed to be followed by the words "without limitation".

(70) "**Indemnifiable Claim**" has the meaning ascribed thereto in Section 11.5.

(71) "**Indemnification Notice**" has the meaning ascribed thereto in Section 11.5.

(72) "**Indemnified Party**" has the meaning ascribed thereto in Section 11.5.

(73) "**Indemnifying Party**" has the meaning ascribed thereto in Section 11.5.

(74) "**Information Statement**" has the meaning ascribed thereto in Section 6.6.

(75) "**Intellectual Property**" means, in any and all jurisdictions throughout the world, all (a) patents and patent applications, (b) registered trademarks, trade names, service marks, logos, corporate names, internet domain names, and any applications for registration of any of the foregoing, together with all goodwill associated with each of the foregoing, (c) registered and material unregistered copyrights, including copyrights in computer software, mask works and databases and (d) trade secrets and other proprietary know-how.

(76) "**JAMS**" has the meaning ascribed thereto in Section 12.5(a).

(77) "**Laws**" means all laws, statutes, by-laws, rules, regulations, orders, decrees, ordinances, protocols, codes, guidelines, policies, notices, directions and judgments or other requirements of any Governmental Authority applicable to the Company or Purchaser, other than U.S. Federal Cannabis Laws.

(78) "**Leased Real Property**" means any real property leased, subleased, licensed or otherwise used by the Company or the Purchaser, as applicable, as tenant, subtenant, licensee or occupant, as applicable, together with, to the extent leased by the Company or the Purchaser, as applicable. all buildings and other structures, facilities or improvements currently or hereafter located thereon, all fixtures, systems, equipment and items of personal property of the Company or the Purchaser, as applicable, attached or appurtenant thereto and all easements, licenses, rights and appurtenances relating to the foregoing.

(79) "**Leases"** has the meaning ascribed thereto in Section 3.1(y).

(80) "**Letter of Transmittal**" means that certain Letter of Transmittal included with the Information Statement to be delivered to the Company Stockholders.

(81) "**Loan**" means the $500,000 loan advanced by Purchaser to the Company pursuant to the promissory note dated October 22, 2021 between Purchaser and the Company.

(82) "**Lock-Up Agreement**" means that certain Lock-Up Agreement, in substantially the form attached hereto as Exhibit C.

(83) **"Losses**" shall mean all direct, out of pocket costs related to any awards, Liabilities, damages, bonds, dues, assessments, fines, penalties, Taxes, fees, costs (including costs of investigation, defense and enforcement of this Agreement), expenses or amounts paid in settlement (in each case, including reasonable attorneys' and experts' fees and expenses), whether or not involving a Third Party Claim. For the avoidance of doubt Losses shall not include any indirect, incidental, consequential or punitive damages or diminution in value or lost profits.

(84) "**Material Adverse Change**" or **"Material Adverse Effect"** with respect to Purchaser or the Company, as the case may be, means any change (including a decision to implement such a change made by the board of directors or by senior management who believe that confirmation of the decision by the board of directors is probable), event, violation, inaccuracy, circumstance or effect that is materially adverse to the business, assets (including intangible assets), liabilities, capitalization, ownership, financial condition or results of operations of Purchaser or the Company, as the case may be, taken as a whole on a consolidated basis; *provided*, *however*, that in no event shall any of the following be deemed, either alone or in combination, to constitute, nor shall any of the following be taken into account in determining whether there has been, a Material Adverse Change or Material Adverse Effect with respect to such entity (except to the extent, in the case of clauses (i) through (iii) below, they have a disproportionate effect on such Party and its Subsidiaries, taken as a whole, as compared to the other companies in the industry in which such Party and its Subsidiaries operate): (i) changes in conditions in the U.S., Canadian or global economy, capital or financial markets generally, including, without limitation, changes in interest or exchange rates, (ii) changes in legal, tax, regulatory, political or business conditions that, in each case, generally affect the geographic regions or industries in which the Party and its Subsidiaries conduct business, (iii) changes in GAAP and/or IFRS, (iv) the negotiation, execution, announcement or performance of this Agreement or the transactions contemplated hereby or the consummation of the transactions contemplated by this Agreement, including, without limitation, the impact thereof on relationships, contractual or otherwise, with customers, suppliers, distributors, landlords, tenants, lenders, investors or employees, (v) acts of war, armed hostilities, sabotage or terrorism, or any escalation or worsening of any such acts of war, armed hostilities, sabotage or terrorism that do not disproportionately affect the Party or its Subsidiaries, (vi) any pandemic, epidemic or any publicly declared health emergency (including the COVID-19 virus); (vii) any action taken by the Party at the request of the other Party or (viii) any failure to meet internal or published projections, estimates or forecasts of revenues, earnings, or other measures of financial or operating performance for any period (provided that the underlying changes, events, circumstances, conditions or effects that contributed to such failure may be taken into account in determining whether such failure has resulted in a Material Adverse Change or Material Adverse Effect).

(85) "**Mergeco**" means the Company, which shall be the surviving corporation of the Merger of Subco with and into the Company pursuant to the Merger.

(86) "**Merger**" means the merger of Subco with and into the Company pursuant to the provisions of the NRS in the manner contemplated in and pursuant to the terms and conditions of this Agreement.

(87) "**Minimum Cash Balance**" means $3,000,000.

(88) **"NRS"** means the Nevada Revised Statutes.

(89) "**Ordinary Course**" means, with respect to the Company and Purchaser, as applicable, the operation of its business in a prudent and business-like manner consistent with the normal day-to-day operations of the business of such Party and in a manner consistent with past practice.

(90) "**Party**" means each of the Company, Purchaser, Subco and the Stockholders Representative and "**Parties**" means the Company, Purchaser, Subco and the Stockholders Representative.

(91) "**Pay-Out Dates**" means the First Pay-Out Date, the Second Pay-Out Date and the Third Pay-Out Date and "**Pay-Out Date**" means any of the First Pay-Out Date, the Second Pay-Out Date or the Third Pay-Out Date.

(92) "**Payment Shares**" means that number of Purchaser Common Shares equal to the higher of (a) $120,000,000 or (b) two times the TTM Company Revenue for the period ended September 30, 2021, divided by the 30-day VWAP of the Purchaser Common Shares on the CSE for the period ended on the Business Day prior to the Closing Date, using the daily foreign exchange rate for Canadian to United States dollars published by the Bank of Canada on the date the 30-day VWAP of the Purchaser Common Shares on the CSE is determined.

(93) "**Permits**" has the meaning ascribed thereto in Section 3.1(r).

(94) "**Person**" includes an individual, corporation, partnership, joint venture, trust, unincorporated organization, the Crown or any agency or instrumentality thereof or any other juridical entity.

(95) "**Pro Rata Share**" means with respect to any Company Stockholder, a ratio (expressed as a percentage) equal to (a) the number of Company Common Shares held by such Company Stockholder as of immediately prior to the Effective Time divided by (b) the Aggregate Company Shares Deemed Outstanding.

(96) "**Purchase Price**" has the meaning ascribed thereto in Section 2.2(a).

(97) "**Purchaser**" has the meaning ascribed thereto on the first page of this Agreement.

(98) **Purchaser Assets**" means the property and assets of Purchaser, of every kind and description and wheresoever situated.

(99) "**Purchaser Common Shares**" means the common shares in the capital of Purchaser.

(100) "**Purchaser Disclosure Letter**" means the disclosure letter dated as of the date hereof delivered by Purchaser to the Company prior to the execution and delivery of this Agreement.

(101) "**Purchaser Financial Statements**" means (i) the audited consolidated financial statements of the Purchaser for the years ended July 31, 2021 and 2020, prepared in accordance with IFRS, and (ii) the unaudited interim financial statements of the Company for the three month period ended October 31, 2021, prepared in accordance with IFRS.

(102) "**Purchaser Fundamental Representations**" shall mean the following representations of the Purchaser set forth in Section 3.1(a), (b), (c), (g), (h) and (i).

(103) "**Purchaser Indemnified Persons**" has the meaning ascribed thereto in Section 11.1.

(104) "**Purchaser Key Personnel**" means each officer and director of Purchaser.

(105) "**Purchaser Stock Option Plan**" means the stock option and incentive plan adopted by the shareholders of the Purchaser on May 27, 2016, as amended from time to time.

(106) "**Purchaser Transaction Approvals**" has the meaning ascribed thereto in Section 7.8(b).

(107) "**Referred Revenue**" means all revenue of Purchaser and its Subsidiaries (other than Direct Revenue) resulting from (i) the acquisition, whether by merger, stock sale or purchase of assets, of any Person by the Purchaser or its Subsidiaries that is first introduced by Micah Anderson and/or his Representatives or Affiliates, including without limitation, those Persons set forth in that certain written list delivered to Purchaser by Micah Anderson prior to the Closing Date, and (ii) sales and services to any Person that is directly referred to Purchaser and its Subsidiaries by the Company or Micah Anderson and/or his Representatives or Affiliates.

(108) "**Release**" means any release, spill, emission, discharge, leaking, pumping, injection, deposit, disposal, dispersal, leaching or migration into the environment (including, without limitation, ambient air, surface water, groundwater and surface or subsurface strata) or into or out of any property, including the movement of Hazardous Materials through or in the soil, surface water or groundwater.

(109) "**Representatives**" means, with respect to any Person, the advisors, attorneys, accountants, consultants or other representatives (acting in such capacity) retained by such Person or any of its controlled Affiliates, together with directors, officers and employees of such Person and its Subsidiaries.

(110) "**Requisite Stockholder Vote**" means the affirmative vote of greater than fifty percent (50.0%) of the issued and outstanding Company Common Shares as of the date of this Agreement approving this Agreement and the Merger.

(111) "**Restricted Cash**" means any trapped cash, cash security or performance deposits, cash escrow accounts, cash subject to a lockbox, dominion, control or similar agreement, cash held on behalf of or for the benefit of another Person or otherwise subject to any restrictions, limitations on use, or Taxes on use, transfer or distribution by Law, Contract or otherwise, including outstanding and un-cleared checks, wires in transit, repatriations, cash securing letters of credit obligations and customer, landlord or security deposits.

(112) "**Resulting Issuer**" means the Purchaser from and after the Effective Time.

(113) "**Resulting Issuer Common Shares**" means the common shares in the capital of the Resulting Issuer.

(114) "**Resulting Issuer Options**" means the options of the Resulting Issuer to be issued in exchange for the Company Options as provided in Section 2.2 hereof, with each such Resulting Issuer Option entitling the holder to purchase one Resulting Issuer Common Share.

(115) "**Second Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(b).

(116) "**Second Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(b).

(117) "**Signing Press Release**" has the meaning ascribed thereto in Section 12.1(b)(ii).

(118) "**Smith Employment Agreement**" means the executive employment agreement dated January 27, 2021 between Mark Smith and the Purchaser.

(119) "**Stockholders Representative**" has the meaning ascribed thereto on the first page of this Agreement.

(120) "**Subco**" means Icanic Merger Sub, Inc., a direct, wholly-owned subsidiary of Purchaser incorporated under the NRS for the sole purpose of effecting the Merger in accordance with the terms of this Agreement.

(121) "**Subsidiary**" means, when used with respect to any Person, any corporation, limited liability company, partnership, association, trust or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power (or, in the case of a partnership, more than 50% of the general partnership interests) are, as of such date, owned by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person; provided that, in the case of Purchaser, the term "Subsidiary" will be deemed to include Subco prior to the Effective Time and Mergeco following the Effective Time.

(122) "**Supplemental Indenture"** means a Supplemental Indenture entered into by and among Purchaser and Odyssey Trust Company, as both trustee and collateral agent thereunder, pursuant to Section 10.01(b) of the Company Indenture, pursuant to which Purchaser shall assume the duties and obligations of the Company under the Company Indenture and the Company Debentures outstanding thereunder as of Closing.

(123) "**Taxes**" means all taxes (including income tax, capital tax, payroll taxes, employer health tax, workers' compensation payments, property taxes and land transfer taxes), duties, royalties, levies, imposts, assessments, deductions, charges or withholdings and all liabilities with respect thereto including any penalty and interest payable with respect thereto.

(124) "**Tax Act**" means the *Income Tax Act* (Canada), as amended.

(125) "**Tax Exempt Person**" means a person who is exempt from tax under Part I of the Tax Act.

(126) **"Termination Date"** has the meaning ascribed thereto in Section 10.1.

(127) "**Third Earn-Out Payment**" has the meaning ascribed thereto in Section 2.10(c).

(128) "**Third Pay-Out Date**" has the meaning ascribed thereto in Section 2.10(c).

(129) **Third Party**" shall mean any Person other than Purchaser or the Company or their respective Affiliates.

(130) "**Third Party Claim**" mean any claim, demand, action, suit, proceeding or litigation asserted by a Third Party against any Party entitled to indemnification under Article 11 of this Agreement.

(131) **"TTM"** means the trailing 12-months.

(132) **"United States"** means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia.

(133) "**U.S. Federal Cannabis Laws**" means any U.S. federal law, civil, criminal or otherwise, that prohibit or penalize, the advertising, cultivation, harvesting, production, distribution, sale and possession of Cannabis and/or related substances or products containing or relating to the same, and related activities, including the prohibition on drug trafficking under the Controlled Substances Act (21 U.S.C. § 801, et seq.), the conspiracy statute under 18 U.S.C. § 846, the bar against aiding and abetting the conduct of an offense under 18 U.S.C. § 2, the bar against misprision of a felony (concealing another's felonious conduct) under 18 U.S.C. § 4, the bar against being an accessory after the fact to criminal conduct under 18 U.S.C. § 3, and federal money laundering statutes under 18 U.S.C. §§ 1956, 1957 and 1960.

(134) **U.S. Securities Act**" means the United States Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

(135) "**VWAP**" means the volume-weighted average trading price.

**ARTICLE 2**

**ACQUISITION**

**Section 2.1 Agreement to Merge.**

Upon the terms and subject to the conditions contained in this Agreement, the Parties hereby agree to implement the Merger in accordance with the NRS. Purchaser shall, in its capacity as the sole stockholder of Subco, approve the Merger as soon as reasonably practicable with the intent that the same shall be completed on or before the date that is 60 days following the date hereof.

**Section 2.2 Merger Events.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon
 the terms and subject to the conditions set forth in this Agreement, at the Effective Time,
 by virtue of the Merger and without any action on the part of the Company, Subco and Purchaser,
 or any holder of Company Common Shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) each
 issued and outstanding Company Common Share (other than Dissenting Shares) will automatically
 be converted into the right to receive: (A) a number of Resulting Issuer Common Shares equal
 to one multiplied by the Exchange Ratio (the "**Closing Payment** "); and (B)
 the Pro Rata Share of each Earn-Out Payment, if any, payable pursuant to Section 2.10 (the
 amounts payable pursuant to this Section 2.2(a)(i) collectively, the "**Purchase Price** ").
 For greater certainty, issued and outstanding Company Common Shares (other than Dissenting
 Shares) will be disposed of to the Purchaser by an Eligible Holder for the Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) each
 Company Option outstanding immediately prior to the Effective Time will be cancelled and
 exchanged for one Resulting Issuer Option on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 number of Resulting Issuer Common Shares subject to the Resulting Issuer Option, rounded
 down to the nearest whole share, will equal the number of Company Common Shares issuable
 upon exercise of the Company Option immediately prior to the Effective Time, multiplied by
 the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the
 exercise price of each Resulting Issuer Option will equal the exercise price of the Company
 Option divided by the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the
 other terms and conditions of the Resulting Issuer Option will be equivalent to the terms
 and conditions of the Company Option, including with respect to term, expiry date and vesting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) the
 Resulting Issuer Options will otherwise be governed by the Purchaser Stock Option Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) it
 is the intention of the Parties that each Resulting Issuer Option issued pursuant to this
 Section 2.2(ii) shall continue to qualify following the Effective Time as an incentive stock
 option as defined in Section 422 of the Code to the extent permitted under Section 422 of
 the Code and to the extent the related Company Option qualified as an incentive stock option
 immediately prior to the Effective Time; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(F) notwithstanding
 Section 2.2(a)(ii)(B), the exercise price per share and the number of Resulting Issuer Common
 Shares purchasable pursuant to each exchanged for Company Option following the Effective
 Time as well as the terms and conditions of such option shall be adjusted, to the extent
 necessary, in order to comply with Sections 424(a) and 409A of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) each
 outstanding Company Warrant will be assumed by Purchaser on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) the
 number of Resulting Issuer Common Shares subject to the Company Warrant will equal the number
 of Company Common Shares issuable upon exercise of the Company Warrant immediately prior
 to the Effective Time, multiplied by the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) the
 exercise price of each Company Warrant will equal the exercise price of the Company Warrant
 divided by the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) the
 other terms and conditions of the Company Warrant will remain unchanged and will continue
 to be governed by the applicable warrant certificate evidencing such Company Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) each
 share of Subco common stock issued and outstanding immediately prior to the Effective Time
 shall be converted into and become one share of common stock of Mergeco such that Mergeco
 shall be a wholly-owned subsidiary of the Resulting Issuer. As consideration for the issuance
 of the Payment Shares, Mergeco shall issue Purchaser one share of Mergeco common stock for
 each Resulting Issuer Common Share issued to the Company Stockholders as a part of the Merger.

**Section 2.3 Payment of Consideration and Exchange Procedures.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On
 the day immediately prior to the Effective Date, the Purchaser shall deposit in escrow pending
 the Effective Time, with the Depositary (the terms and conditions of such escrow to be satisfactory
 to the Parties, acting reasonably), sufficient Payment Shares to satisfy the Closing Payment
 to be paid to the Company Stockholders in accordance with Section 2.2(a)(i) of this Agreement.
 The Depositary shall hold the Payment Shares as agent and nominee for the Company Stockholders
 for distribution to such Company Stockholders and, following the Effective Time, the Depositary
 shall deliver the Payment Shares deposited with the Depositary to the Company Stockholders
 in accordance with Section 2.3(d) and the depositary agreement to be entered into among the
 Parties and the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Following
 the Effective Time on the Effective Date, the original stock certificate of Subco registered
 in the name of Purchaser shall be cancelled and Purchaser shall be issued a stock certificate
 for the number of shares of the common stock of Mergeco to be issued to Purchaser as provided
 in Section 2.2(iv) hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon
 the Effective Time and subject to the treatment of Dissenting Shares in Section 2.7 hereof,
 certificates or other evidence representing the Company Common Shares, Company Options or
 Company Warrants, as applicable, shall cease to represent any claim upon or interest in the
 Company other than the right of the holder to receive, pursuant to the terms hereof and thereof,
 the Purchase Price, Resulting Issuer Options and Resulting Issuer Common Shares upon exercise
 of Company Warrants, respectively, in accordance with Section 2.2 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On
 or prior to the Effective Date, the Purchaser shall mail or otherwise cause to be delivered
 to each holder of record of Company Common Shares, at the address of record for such Company
 Stockholder: (i) a Letter of Transmittal for the surrender of stock certificates representing
 the Company Common Shares, (ii) an Accredited Investor Certification (for Company Stockholders
 that are a U.S. Person) and (iii) instructions for use in effecting the surrender of the
 Company Common Shares and certificates therefor to the Purchaser in exchange for the applicable
 portion of the Purchase Price. As soon as reasonably practicable after, but in no event more
 than five Business Days after the date that the Company Stockholder has surrendered the Company
 Common Shares for cancellation to the Purchaser, together with such Letter of Transmittal
 (including a completed and duly executed Accredited Investor Certification, if applicable)
 and any required Form W-9 or Form W-8, duly completed and validly executed in accordance
 with the instructions thereto (including all required deliverables), the holder of such Company
 Common Shares shall receive, and the Purchaser shall cause the Depositary, upon surrender
 thereof, to deliver share certificates or evidence of DRS entry in such Common Stockholder's
 name of the aggregate amount of Resulting Issuer Common Shares issuable to such Company Stockholder
 pursuant to Section 2.2(a)(i), and any Company Common Shares so surrendered to the Purchaser
 shall be canceled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As
 soon as practicable following the Effective Date, the Purchaser shall mail or otherwise cause
 to be delivered to each holder of Company Options, at the address set forth for such holder
 of Company Options on the Company Capitalization Spreadsheet the new Resulting Issuer Options
 in such holder's name pursuant to Section 2.2(a)(ii).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) As
 soon as practicable following the Effective Date, the Purchaser shall mail or otherwise cause
 to be delivered to each holder of a Company Warrant, at the address set forth for such holder
 of Company Warrants on the Company Capitalization Spreadsheet a written notice setting forth
 (i) the terms of the Company Warrant as adjusted pursuant to their terms and as provided
 for in Section 2.2(a)(iii), and (ii) that such Company Warrants will continue to be governed
 by the applicable warrant certificate as so adjusted.

**Section 2.4 Legending of Payment Shares**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company, on behalf of the Company Stockholders, acknowledges that at the discretion of the
 Purchaser and the Stock Representative, the Payment Shares issued as consideration to the
 Company Stockholders pursuant to this Agreement shall be issued bearing the legends set forth
 in Exhibit D attached hereto (in additional to any legend required pursuant to the U.S. Securities
 Act).

**Section 2.5 Merged Corporation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Articles of Incorporation and the Bylaws of the Company shall be the Certificate of Incorporation
 and Bylaws of Mergeco, with any amendments thereto, to be made in accordance with applicable
 law at the Effective Time, as may be necessary to give effect to this Agreement, including
 the following provisions (i) through (vii):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Number of Directors.** The board of directors of Mergeco shall consist of a minimum of one (1)
 director and a maximum of two (2) directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Officers and Directors**. As of the Effective Time, the initial directors of Mergeco shall be Micah
 Anderson and Emily Heitman. As of the Effective Time, the initial officers of Mergeco shall
 be:

---

| | |
|:---|:---|
| <u>Name</u> | <u>Title</u> |
| Micah Anderson | Chief Executive Officer and President |
| Emily Heitman | Chief Operating Officer |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **Fiscal Year**. The fiscal year end of Mergeco shall be July 31 in each year, unless and until
 changed by resolution of the board of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Registered Office**. The registered office of Mergeco shall be the registered office of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **Authorized Capital.** The authorized capital of Mergeco shall be 100,000,000,000 shares of common
 stock with a par value of $0.001 each, all of which shall be common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) **Business and Powers**. There shall be no restriction on the business that Mergeco may carry on or
 on the powers that Mergeco may exercise.

**Section 2.6 Fractional Shares.**

No fractional Resulting Issuer Common Shares will be issued or delivered pursuant to the Merger. Any fractional share will be rounded down to the next lowest number and no consideration will be paid in lieu thereof.

**Section 2.7 Dissenting Shares.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 any provision of this Agreement to the contrary, any Dissenting Shares shall not be converted
 into or represent a right to receive the Company Stockholder's Pro-Rata Share of the
 Purchase Price for Company Common Shares pursuant to Section 2.2(a)(i), but shall instead
 be converted into and represent only the right to receive such consideration as may be determined
 to be due with respect to any such Dissenting Shares pursuant to Section 92A.300 <u>et seq</u>.
 of the NRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 the provisions of Section 2.7(a), if any Company Stockholder who demands appraisal of such
 Company Common Shares under the NRS shall effectively withdraw or lose (through failure to
 perfect or otherwise) the right to appraisal, then, as of the later of (i) the Effective
 Time, or (ii) the occurrence of such event, such Company Stockholder's Company Common
 Shares shall automatically be converted into and represent only the right to receive such
 Company Stockholder's Pro-Rata Share of the Purchase Price as provided in Section 2.2(a)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Company shall give Purchaser prompt notice of any written demands for appraisal of any Company
 Common Shares, withdrawals of such demands, and any other instruments that relate to such
 demands received by the Company. The Company shall not, except with the prior written consent
 of the Purchaser, make any payment with respect to any demands for appraisal of Company Common
 Shares or offer to settle or settle any such demands unless required by applicable Laws.

**Section 2.8 Effect of Merger.**

At the Effective Time:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subco
 shall merge with and into the Company in accordance with the NRS and the separate existence
 of Subco shall cease and the Company shall continue as the surviving corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Mergeco
 shall possess all the rights, powers, privileges and franchise and be subject to all the
 obligations, liabilities and duties of the Company and Subco, all as provided under the NRS.

**Section 2.9 Filing of Articles of Merger.**

Following receipt of the Requisite Stockholder Vote and the approval of the stockholders of Subco to implement the Merger and subject to the satisfaction or waiver of all of the conditions precedent to the Merger set forth herein, the Company shall file the Articles of Merger and such other documents as required under the NRS to effect the Merger pursuant to the NRS.

**Section 2.10 Earn-Out Payments**

Following the Effective Date and the completion of the transactions contemplated by this Agreement, Purchaser shall pay to the Company Stockholders, on a Pro Rata Share basis, the following performance earn-out payments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 15
 months following Closing (the "**First Pay-Out Date** "), an amount equal to
 10% of (A) the product equal to two times the TTM Company Revenue calculated for the 12-month
 period immediately following Closing minus (B) the Closing Payment (the "**First Earn-Out Payment** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 27
 months following Closing (the "**Second Pay-Out Date** "), an amount equal
 to 10% of (A) the product equal to two times the TTM Company Revenue calculated for the 12-
 month period immediately following the first anniversary of the Closing minus (B) the Closing
 Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment (the "**Second Earn-Out Payment** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) 39
 months following Closing (the "**Third Pay-Out Date** "), an amount equal to
 10% of (A) the product equal to two times the TTM Company Revenue calculated for the 12-month
 period immediately following the second anniversary of the Closing minus (B) the Closing
 Payment minus (C) any amounts paid pursuant to the First Earn-Out Payment minus (D) any amounts
 paid pursuant to the Second Earn-Out Payment (the "**Third Earn- Out Payment** ").

By way of example and for illustrative purposes only, Appendix I, attached hereto, sets forth a sample calculation of each of the First Earn-Out Payment, the Second Earn-Out Payment and the Third Earn-Out Payment.

Each Earn-Out Payment will be payable in Resulting Issuer Common Shares (the "**Earn-Out Shares**") at a price per Earn-Out Share equal to the 30-day VWAP of the Resulting Issuer Common Shares for the period ending on the Business Day prior to the date of issuance. All Earn-Out Shares issuable pursuant to this Section 2.10 shall be issued in DRS entry in such Common Stockholder's name within five Business Days following final resolution of the applicable Earn-Out Payment Certificate pursuant to Section 2.10 or Section 2.12(b).

**Section 2.11 Review of Earn-Out Payment Certificate**

Within 30 days following the applicable Pay-Out Date, Purchaser shall deliver to the Stockholders Representative a statement, executed by the Chief Financial Officer of Purchaser, setting forth Purchaser's good faith calculation of the applicable Earn-Out Payment, together with all supporting documentation (the "**Earn-Out Payments Certificate**"). If the Stockholders Representative disagrees with the computation of the applicable Earn-Out Payment set forth in the Earn-Out Payment Certificate, the Stockholders Representative may, within 30 calendar days after its receipt of the Earn- Out Payments Certificate, deliver a notice (an "**Earn-Out Payments Certificate Objection Notice**") to Purchaser setting forth in reasonable detail which components of the calculation and reasonable supporting details for such disagreement to the extent known at such time. If the Stockholders Representative agrees with the computation of the applicable Earn-Out Payment set forth in the Earn- Out Payment Certificate, the Stockholders Representative shall confirm same in writing to the Purchaser and the Earn-Out Payment Certificate shall be final and binding and the Purchaser shall effect the applicable Earn-Out Payment as soon as practicable and in any event, no later than five Business Days thereafter.

**Section 2.12 Dispute Settlement**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Purchaser
 and the Stockholders Representative will attempt in good faith to resolve any disagreements
 set forth in any Earn-Out Payments Certificate Objection Notice for a period of not less
 than 30 calendar days. Any disputed items resolved in writing between Purchaser and the Stockholders
 Representative within such 30 day period shall be final and binding with respect to such
 items and shall not be subject to appeal or further review, absent Fraud or manifest error.
 If Purchaser and the Stockholders Representative do not agree in writing on a final resolution
 of all objections set forth in the Earn-Out Payments Certificate Objection Notice within
 such 30 calendar days after delivery of any Earn-Out Payments Certificate Objection Notice,
 Purchaser and the Stockholders Representative will, as promptly as practicable, jointly retain
 an independent accounting firm of national recognition to be mutually agreed upon (the "**Earn-Out Payments Firm**") to resolve any remaining disagreements, which determination must
 be in writing and must set forth, in reasonable detail, the basis therefor and must be based
 solely on (i) the definitions and other applicable provisions of this Agreement, (ii) a single
 presentation (which presentations shall be limited to the remaining items in dispute set
 forth in the Earn-Out Payments Certificate Objection Notice (and not otherwise resolved by
 Purchaser and the Stockholders Representative in writing)) submitted by each of Purchaser
 and the Stockholders Representative to the Earn-Out Payments Firm within 15 calendar days
 after the engagement of such firm (which the Earn-Out Payments Firm shall forward to Purchaser
 or the Stockholders Representative, as applicable) and (iii) one written response submitted
 to the Earn-Out Payments Firm within 10 calendar days after receipt of each such other Party's
 presentation (which the Earn-Out Payments Firm shall forward to Purchaser or the Stockholders
 Representative, as applicable), and not on independent review, which such determination shall
 be conclusive and binding on each Party and the Company Stockholders, absent Fraud or manifest
 error. Purchaser and the Stockholders Representative shall use commercially reasonable efforts
 to cause the Earn-Out Payments Firm to render a written determination as to each disputed
 item and the amount of the applicable Earn-Out Payment within 45 days of the date of its
 engagement, and Purchaser and the Stockholders Representative shall, and shall cause their
 respective Affiliates and Representatives to, cooperate with the Earn-Out Payments Firm during
 its engagement. In resolving any disputed item, the Earn-Out Payments Firm may not assign
 a value to any item greater than the greatest value for such item claimed by either Party
 or less than the smallest value for such item claimed by either Party. All communications
 with the Earn-Out Payments Firm must include each of Purchaser and the Stockholders Representative.
 In acting under this Agreement, the Earn-Out Payments Firm shall function solely as an expert
 and not as an arbitrator. Purchaser and the Stockholders Representative shall bear the costs
 and expenses of any dispute resolution pursuant to this Section 2.12, including the fees
 and expenses of the Earn-Out Payments Firm and any enforcement of the determination thereof,
 based on the percentage which the portion of the contested amount not awarded to each Party
 bears to the amount actually contested by such Party, which percentage allocation shall be
 calculated on an aggregate basis based on the relative dollar values of the amounts in dispute
 and shall be determined by the Earn-Out Payments Firm at the time the determination of such
 Earn-Out Payments Firm is rendered on the merits of the matters submitted. The fees and disbursements
 of the Representatives of each Party incurred in connection with the preparation or review
 of the Earn-Out Payments Certificate and preparation or review of any Earn-Out Payments Certificate
 Objection Notice, as applicable, shall be borne by such Party. The determination by the Earn-Out
 Payments Firm shall be conclusive and binding and judgment may be entered upon the written
 determination of the Earn-Out Payments Firm in accordance with this Section 2.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Earn-Out Payments Certificate shall be deemed final for the purposes of this Section 2.11
 upon the earliest of (i) the date Purchaser and the Stockholders Representative so agree
 in writing, (ii) the failure of the Stockholders Representative to deliver an Earn-Out Payments
 Certificate Objection Notice within thirty (30) calendar days of the date of receipt of the
 applicable Earn-Out Payments Certificate, and (iii) the resolution of all disputes, pursuant
 to Section 2.12, by Purchaser and the Stockholders Representative or the Earn-Out Payments
 Firm.

**Section 2.13 Reasonable Cooperation.**

At all times prior to the date that the Earn-Out Payments are paid to the Company Stockholders in accordance with Section 2.10, Purchaser shall, and shall cause Mergeco and their respective Subsidiaries to, make available all financial records and personnel that the Stockholders Representative (including any of its Representatives) or the Earn-Out Payments Firm may request, at any time during normal business hours, in connection with the transactions contemplated by Section 2.10, 2.11 and 2.12 subject to execution by the Stockholders Representative of a confidentiality agreement to reasonably ensure the confidentiality of the information provided by Purchaser, Mergeco and their respective Subsidiaries.

**Section 2.14 Canadian Tax Treatment.**

An Eligible Holder shall be entitled to make a joint income tax election, pursuant to section 85 of the Tax Act (and any analogous provision of provincial income tax law) with respect to the disposition of Company Common Shares under this Merger by providing two signed copies of the necessary joint election form(s) to an appointed representative, as directed by the Purchaser, within 60 days after the Effective Date, duly completed with the details of the Company Common Shares transferred and the applicable agreed amount for the purposes of such joint election(s). Purchaser shall, within 30 days after receiving the completed joint election form(s) from an Eligible Holder, and subject to such joint election form(s) being correct and complete and in compliance with requirements imposed under the Tax Act (or any analogous provision of provincial income tax law), sign and return such form(s) to such Eligible Holder for filing with the Canada Revenue Agency (or any applicable provincial taxation authority). Neither Purchaser, the Company nor any successor corporation shall be responsible for the proper completion and filing of any joint election form, and except for the obligation to sign and return the duly completed joint election form(s) which are received within 60 days of the Effective Date, for any taxes, interest or penalties arising as a result of the failure of an Eligible Holder to properly or timely complete and file such joint election form(s) in the form and manner prescribed by the Tax Act (or any applicable provincial legislation). In its sole discretion, Purchaser or any successor corporation may choose to sign and return a joint election form received by it more than 60 days following the Effective Date, but will have no obligation to do so.

**Section 2.15 Company Debentures.**

The Purchaser acknowledges and agrees that following the Effective Time, (i) the Company Debentures will remain outstanding and will continue to be governed in accordance with the terms of the Company Indenture, (ii) that the transactions contemplated by this Agreement will constitute a "Liquidity Event" (as such term is defined in the Company Indenture) entitling the holders of the Company Debentures to convert their Company Debentures for Resulting Issuer Common Shares in accordance with the terms of the Company Indenture, and (iii) all obligations of the Company pursuant to the Company Indenture (including, for greater certainty, the obligation to repay the principal amount outstanding under each such Company Debenture) will become obligations of the Resulting Issuer. The Purchaser agrees to execute and enter into such documents as may be requested by Odyssey, as collateral agent, to give effect to the foregoing, including, without limitation, the Supplemental Indenture.

**ARTICLE 3**

**REPRESENTATIONS AND WARRANTIES OF PURCHASER**

**Section 3.1 Representations and Warranties of Purchaser.**

Purchaser represents and warrants to and in favour of the Company as follows, and acknowledges that the Company is relying upon such representations and warranties in connection with the completion of the transactions contemplated herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each
 of Purchaser and Subco is a corporation incorporated and validly existing under the laws
 of their respective jurisdiction of incorporation. In each case, each such entity has all
 requisite corporate power and authority and is duly qualified and holds all Permits necessary
 or required to carry on its business as now conducted and in the case of Purchaser, to own,
 lease or operate the Purchaser Assets, and neither Purchaser nor, to the knowledge of Purchaser,
 any other Person, has taken any steps or proceedings, voluntary or otherwise, requiring or
 authorizing the dissolution or winding up of Purchaser or Subco, and Purchaser and Subco
 have all requisite corporate power and authority to enter into this Agreement and to carry
 out their obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 authorized share capital of Purchaser consists of: (i) an unlimited number of Purchaser Common
 Shares, of which 238,235,947 Purchaser Common Shares are issued and outstanding as fully
 paid and non-assessable shares in the capital of Purchaser; and (ii) an unlimited number
 of preferred shares, of which no preferred shares are issued and outstanding. Other than
 described in the Purchaser Disclosure Letter, there are no other options, warrants, other
 rights, agreements or commitments of any character whatsoever requiring the issuance, sale
 or transfer by Purchaser of any securities of Purchaser or any securities convertible into,
 or exchangeable or exercisable for, or otherwise evidencing a right to acquire any shares
 of Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Other
 than as described in the Purchaser Disclosure Letter, Purchaser has no direct or indirect
 Subsidiaries nor any investment in any Person or any agreement, option or commitment to acquire
 any such investment. All of the issued and outstanding securities of Subco are held by Purchaser.
 Subco has no liabilities and is not party to any agreement other than this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Purchaser
 is conducting its business in compliance in all material respects with all applicable Laws
 and regulations of each jurisdiction in which it carries on business and has not received
 a notice of non-compliance, and, to the knowledge of Purchaser, there are no facts that would
 give rise to a notice of material noncompliance with any such Laws and regulations. Each
 of Purchaser and its Subsidiaries and their respective Affiliates hold the applicable Cannabis
 Licenses required to conduct their present business. Each Cannabis License is in full force
 and effect in all material respects and has not been revoked, suspended, cancelled, rescinded,
 terminated, modified and has not expired. There are no pending or, to Purchaser's knowledge,
 threatened actions by or before any Governmental Authority to revoke, suspend, cancel, rescind,
 terminate and/or materially adversely modify any Cannabis License. True and complete copies
 of all of Cannabis Licenses held by Purchaser or its Subsidiaries have been made available
 to the Company and are set forth in Section 3.1(d) of the Purchaser Disclosure Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No
 consent, approval, order or authorization of, or registration, declaration or filing with,
 any third party or Governmental Authority is required by or with respect to Purchaser and
 Subco in connection with the execution and delivery of and the performance by Purchaser and
 Subco of their respective obligations under this Agreement, the Ancillary Agreements and
 the consummation by Purchaser and Subco of the transactions contemplated hereunder and thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Since
 July 31, 2021, (i) Purchaser and its Subsidiaries have operated their respective businesses
 in the Ordinary Course, and (ii) there has not been any Material Adverse Change with respect
 to the Purchaser or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Each
 of the execution and delivery of this Agreement and the applicable Ancillary Agreements,
 the performance by each of Purchaser and Subco of their obligations hereunder and thereunder
 and the consummation of the transactions contemplated in this Agreement and the applicable
 Ancillary Agreements, including the Merger and the issue of the Resulting Issuer Common Shares
 and Resulting Issuer Options and Resulting Issuer Common Shares issuable upon the exercise
 of the Resulting Issuer Options and Company Warrants in connection with the Merger, do not
 and will not conflict with or result in a material breach or violation of any of the terms
 or provisions of, or constitute a material default under (whether after notice or lapse of
 time or both), (i) any statute, rule or regulation applicable to Purchaser or Subco, including
 Applicable Securities Laws; (ii) the constating documents, Bylaws or resolutions of Purchaser
 or Subco; (iii) any material mortgage, note, indenture, contract, agreement, joint venture,
 partnership, instrument, lease or other document to which Purchaser or Subco is a party or
 by which it is bound; or (iv) any judgment, decree or order binding Purchaser or Subco or
 their respective assets. Upon consummation of the Merger, the Company Stockholders will own
 the Payment Shares to which each such Company Stockholder is entitled free and clear of any
 liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) This
 Agreement has been duly authorized and executed by Purchaser and Subco and constitutes a
 valid and binding obligation of each of them and shall be enforceable against each of them
 in accordance with its terms, except as enforcement thereof may be limited by bankruptcy,
 insolvency, reorganization, moratorium and other Laws relating to or affecting the rights
 of creditors generally and except as limited by the application of equitable principals when
 equitable remedies are sought, and by the fact that rights to indemnity, contribution and
 waiver, and the ability to sever unenforceable terms, may be limited by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Other
 than this Agreement, the Purchaser is not currently party to any binding agreement in respect
 of: (i) the purchase of any material property or assets or any interest therein or the sale,
 transfer or other disposition of any material property or assets or any interest therein
 currently owned, directly or indirectly, by the Purchaser whether by asset sale, transfer
 of shares or otherwise in excess of $100,000 in the aggregate; or (ii) the change of control
 of the Purchaser (whether by sale or transfer of shares or sale of all or substantially all
 of the property or assets of the Purchaser or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The
 Purchaser Financial Statements will be prepared in accordance with IFRS consistently applied
 throughout the periods referred to therein and present fairly, in all material respects,
 the financial position (including the assets and liabilities, whether absolute, contingent
 or otherwise as required by IFRS) of Purchaser as at such dates and the results of its operations
 and its cash flows for the periods then ended and contain and reflect adequate provisions
 or allowance for all reasonably anticipated liabilities, expenses and losses of Purchaser
 in accordance with IFRS and there has been no change in accounting policies or practices
 of Purchaser since July 31, 2020. The Purchaser does not have any outstanding indebtedness
 or any liabilities or obligations including any unfunded obligation under any Employee plan,
 whether accrued, absolute, contingent or otherwise as of the date of the applicable Purchaser
 Financial Statements other than those required to be set forth in such Purchaser Financial
 Statements by IFRS and as disclosed in writing to the Company on or substantially concurrently
 with the date of this Agreement. The Purchaser Financial Statements will present fairly,
 in all material respects, the consolidated financial position, financial performance and
 cash flows of the Purchaser for the dates and periods indicated therein (subject, in the
 case of any unaudited interim financial statements, to normal period-end adjustments) and
 reflect reserves required by IFRS in respect of all material contingent liabilities, if any,
 of the Purchaser on a consolidated basis. There has been no material change in the Purchaser's
 accounting policies since July 31, 2020.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Purchaser
 is a taxable Canadian corporation for Canadian tax purposes and all Taxes due and payable
 or required to be collected or withheld and remitted, by Purchaser and Subco have been paid,
 collected or withheld and remitted as applicable. All tax returns, declarations, remittances
 and filings required to be filed by Purchaser and Subco have been filed with all appropriate
 Governmental Authorities and all such returns, declarations, remittances and filings are
 complete and accurate and no material fact or facts have been omitted therefrom which would
 make any of them misleading. Purchaser has not received notice of any examination of any
 tax return of Purchaser or Subco, and to the knowledge of Purchaser, no such examination
 is currently in progress by any Governmental Authorities and there are no issues or disputes
 outstanding with any Governmental Authorities respecting any Taxes that have been paid, or
 may be payable, by Purchaser or Subco. There are no agreements, waivers or other arrangements
 with any taxation authority providing for an extension of time for any assessment or reassessment
 of Taxes with respect to Purchaser and its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The
 Purchaser maintains a system of internal accounting controls sufficient to provide reasonable
 assurances that (i) transactions are executed in accordance with management's general
 or specific authorization; and (ii) transactions are recorded as necessary to permit preparation
 of financial statements (including the Purchaser Financial Statements) in conformity with
 IFRS and to maintain accountability for assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The
 Purchaser's current auditors who will audit the Purchaser Financial Statements are
 independent with respect to the Purchaser within the meaning of the rules of professional
 conduct applicable to auditors in Canada and there has never been a "reportable event"
 (within the meaning of National Instrument 51-102 – *Continuous Disclosure Obligations*)
 with the current or, to the knowledge of the Purchaser, any predecessor auditors of the Purchaser
 during the last three years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) No
 Person is entitled to any pre-emptive or any similar rights to subscribe for any Purchaser
 Common Shares or other securities of Purchaser and no rights to acquire, or instruments convertible
 into or exchangeable for, any securities in the capital of Purchaser or Subco are outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) No
 legal or governmental actions, suits, judgments, investigations or proceedings are pending
 to which Purchaser or Subco, or to the knowledge of Purchaser, the directors or officers
 of Purchaser or Subco are a party, or to which the Purchaser Assets are subject and, to the
 knowledge of Purchaser, no such proceedings have been threatened against or are pending with
 respect to Purchaser or Subco, or with respect to the Purchaser Assets and neither Purchaser
 or Subco is subject to any judgment, order, writ, injunction, decree or award of any Governmental
 Authorities. Neither Purchaser, nor any of its Subsidiaries, nor any of the Purchaser Assets
 or properties, is subject to any material outstanding judgment, order, writ, injunction or
 decree applicable to Purchaser or any of its subsidiaries on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Neither
 the Purchaser nor Subco is in violation of its organizational documents or in default, in
 any material respect, in the performance or observance of any obligation, agreement, covenant
 or condition contained in any material Contract to which it is a party or by which it or
 its property and the Purchaser Assets may be bound and all material Contracts to which the
 Purchaser is a party are in good standing in all respects and in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Except
 as set forth in Section 3.1(q) of the Purchaser Disclosure Letter, the Purchaser owns or
 has all necessary rights to use (as currently used) all material property and assets owned
 or used that are necessary in the conduct of the business of the Purchaser as now conducted
 free and clear of any actual, pending or, to the knowledge of the Purchaser, threatened claims,
 liens, charges, options, set-offs, free-carried interests, royalties, encumbrances, security
 interests or other interests whatsoever other than such security interests, liens and encumbrances
 granted in the Ordinary Course of business by the Purchaser. Such assets comprise all of
 the assets, properties and rights used in or necessary to the conduct of the business of
 the Purchaser and are adequate and sufficient to conduct the business of the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Except
 as set forth in Section 3.1(r) of the Purchaser Disclosure Letter, the Purchaser holds all
 material permits, licenses, approvals, consents, orders, markings, certificates and like
 authorizations necessary for it to own, lease and license its property and the Purchaser
 Assets and carry on its business, as now carried on as of the date of this Agreement, in
 each jurisdiction where such business is carried on, including, but not limited to, permits,
 licenses, approvals, consents, orders, certificates and like authorizations from Governmental
 Authorities(collectively, the "**Permits** ").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) Section
 3.1(s) of the Purchaser Disclosure Letter sets forth a complete and accurate list of all
 of the following that constitutes material Intellectual Property: (i) registered Intellectual
 Property, (ii) pending applications for registration of Intellectual Property, (iii) all
 computer software (other than commercially available, off-the-shelf software with a replacement
 cost or annual license fee of less than $10,000), and (iv) trade or corporate names and material
 unregistered trademarks and service marks. Except as would not, individually or in the aggregate,
 have a Material Adverse Effect with respect to the Purchaser, (i) to the knowledge of the
 Purchaser, (A) the conduct of the Purchaser's business as currently conducted does
 not infringe or otherwise violate any Person's registered Intellectual Property and
 (B) there is no claim of such infringement or other violation pending or to the knowledge
 of the Purchaser, threatened in writing, against the Purchaser, and (ii) to the knowledge
 of the Purchaser (A) no Person is infringing or otherwise violating any Intellectual Property
 owned by the Purchaser and (B) no claims of such infringement or other violation are pending
 or threatened in writing against any Person by the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The
 information technology equipment and related systems owned, used or held for use by the Purchaser
 ()"**Systems**") are reasonably sufficient to operate the business of the Purchaser
 as currently conducted. During the last three (3) years, to the Purchaser's knowledge,
 there has been no unauthorized access, use, intrusion, or breach of security, or material
 failure, breakdown, performance reduction or other adverse event affecting any Systems that
 has caused any substantial disruption to the use of such Systems or the business of the Purchaser
 or any material loss or harm to the Purchaser or its personnel, property, or the Purchaser
 Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) The
 Purchaser has complied in all material respects with all Laws and contractual and fiduciary
 obligations as to protection and security of personal data to which it is subject. The Purchaser
 has not received any written inquiries from or been subject to any audit or legal proceeding
 by any Governmental Authority regarding personal data. The Purchaser has complied with its
 policies and procedures as to collection, use, processing, storage and transfer of personal
 data. No legal proceeding alleging (i) a material violation of any Person's privacy
 rights or (ii) unauthorized access, use or disclosure of personal data has been asserted
 or threatened in writing to the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Section
 3.1(v) of the Purchaser Disclosure Letter sets forth a complete and accurate list of the
 Purchaser Transaction Approvals. Except as set forth in Section 3.1(v) of the Purchaser Disclosure
 Letter, there are no third party consents or other approvals required to be obtained in order
 for the Purchaser to implement the Merger and complete the Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Except
 for those matters that, individually or in the aggregate, would not have a Material Adverse
 Effect with respect to the Purchaser, (i) the Purchaser is in compliance with all applicable
 Environmental Laws, which compliance includes obtaining, maintaining or complying with all
 Permits required under Environmental Laws for the operation of its business, (ii) there is
 no investigation, suit, claim or action relating to or arising under Environmental Laws (including,
 without limitation, relating to or arising from the Release, threatened Release or exposure
 to any Hazardous Material) that is pending or, to the knowledge of the Purchaser, threatened
 in writing against the Purchaser or any real property currently owned, operated or leased
 by the Purchaser and (iii) the Purchaser has not received any written notice of, or entered
 into any order, settlement, judgment, injunction or decree involving uncompleted, outstanding
 or unresolved liabilities or corrective or remedial obligations relating to or arising under
 Environmental Laws (including, without limitation, relating to or arising from the Release,
 threatened Release or exposure to any Hazardous Material).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The
 Purchaser is not a party to or bound by any collective bargaining agreement and is not currently
 conducting negotiations with any labour union or employee association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) Other
 than as disclosed in Section 3.1(y) of the Purchaser Disclosure Letter, the Purchaser does
 not own any real property. Section 3.1(y) of the Purchaser Disclosure Letter lists: (i) each
 lease, sublease, license or other agreement and any amendments or modifications thereto relating
 to all Leased Real Property (each a "**Lease**" and collectively, the "**Leases** "),
 true and complete copies of which have been made available to the Company, (ii) the street
 address of each parcel of Leased Real Property, (iii) the identity of the lessor, lessee
 and current occupant (if different from lessee) of each such parcel of Leased Real Property,
 and (iv) the current use of each such parcel of Leased Real Property. The Purchaser and each
 Subsidiary, as applicable, has a valid and enforceable leasehold interest under each Lease
 relating to Leased Real Property used by it. Each Lease is in full force and effect and is
 valid, binding and enforceable in accordance with its terms against the Purchaser or Subsidiary
 and each other party thereto. Neither the Purchaser nor any Subsidiary is in default nor
 has it received a notice of default or termination that remains outstanding under any Lease,
 and to the Purchaser's knowledge, no uncured default or breach on the part of the landlord
 exists under any Lease, and no event has occurred or circumstance exists which, with the
 delivery of notice, passage of time or both, would constitute such a breach or default or
 permit the termination, modification or acceleration of rent under any such Lease. The Leased
 Real Property comprise all of the real property used or intended to be used in, or otherwise
 related to, the business of the Purchaser or any of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Other
 than as disclosed in Section 3.1(z) of the Purchaser Disclosure Letter, no order, ruling
 or determination having the effect of suspending the sale or ceasing the trading in any securities
 of the Purchaser has been issued by any Governmental Authority and is continuing in effect
 and no proceedings for that purpose have been instituted or, to the knowledge of the Purchaser,
 are pending, contemplated or threatened by any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The
 Purchaser is in material compliance with all Laws respecting employment and employment practices,
 terms and conditions of employment, pay equity and wages and has not and is not engaged in
 any unfair labour practice and there has never been any material labour disruption. There
 is no action with respect to any employment-related matters, including payment of wages,
 salary or overtime pay, that has been asserted or is now pending or, to Purchaser's
 knowledge, threatened by or before any Governmental Authority with respect to any Persons
 currently or formerly employed (or engaged as an independent contractor) by, or who are or
 were applicants for employment with, Purchaser or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Other
 than as set forth in Section 3.1(bb) of the Purchaser Disclosure Letter, neither Purchaser
 nor Subco are party to any Contract, written or oral, involving an amount in excess of $50,000
 other than this Agreement and the Loan Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) Neither
 Purchaser nor, to the knowledge of Purchaser, any other party thereto is in default or breach
 of any Contract of Purchaser and, to the knowledge of Purchaser, there exists no condition,
 event or act which, with the giving of notice or lapse of time or both would constitute a
 default or breach under any Contract of Purchaser which would give rise to a right of termination
 on the part of any other party to such Contract or would otherwise have a Material Adverse
 Effect on the Purchaser. Purchaser has not received written, or to the knowledge of Purchaser,
 other notice of, any alleged breach of or alleged default under or dispute in connection
 with any Contract or of any intention of any party to any Contract of Purchaser to cancel,
 terminate or otherwise materially modify or not renew its relationship with the Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) Purchaser
 is not a party to any agreement, nor, to the knowledge of Purchaser, is there any shareholders
 agreement, pooling agreement, voting trust, or other contract which in any manner affects
 the ownership or voting control of any of the securities of Purchaser or Subco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) Other
 than as set forth in Section 3.1(ee) of the Purchaser Disclosure Letter, the Purchaser does
 not have any agreements, plans or practices relating to the payment of any management, consulting,
 service or other fees or any bonuses, pensions, share of profits or retirement allowance,
 insurance, health or other Employee benefits or any plan for retirement, stock purchase,
 profit sharing, stock option, deferred compensation, severance or termination pay, insurance,
 medical, hospital, dental, vision care, drug, sick leave, disability, salary continuation,
 legal benefits, unemployment benefits, vacation, incentive or otherwise contributed to, or
 required to be contributed to, by the Purchaser for the benefit of any current or former
 director, officer, Employee or consultant of the Purchaser (each, an "**Employee Plan** ").
 The Purchaser has made available to the Company the opportunity to review true and complete
 copies of documents, contracts and arrangements relating to the Employee Plans. The Employee
 Plans have been established, operated in the Ordinary Course and administered in all material
 respects in accordance with their terms and applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) Except
 as set out in the Purchaser Disclosure Letter, none of the directors or officers of the Purchaser
 or any of its associates or Affiliates has any interest, direct or indirect, in any transaction
 with the Purchaser that materially affects the Purchaser and its Subsidiaries, taken as a
 whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) Copies
 of the minute books and records of the Purchaser and Subco made available to the Company
 in connection with the due diligence investigation of the Purchaser and Subco for the period
 from July 31, 2018 to the date hereof are all of the minute books of the Purchaser and Subco
 and contain copies of all material organizational documents, bylaws, shareholder minutes,
 directors minutes and committee minutes of the Purchaser and Subco.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) There
 is no Person acting or purporting to act at the request or on behalf of Purchaser that is
 entitled to any brokerage or finder's fee or other compensation in connection with
 the transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The
 Payment Shares will, on Closing, be issued, and the Earn-Out Shares will, if issued in accordance
 with the terms and conditions of this Agreement, at the time of issuance be issued, in compliance
 with all applicable Laws (including Applicable Securities Laws). The Payment Shares, Earn-Out
 Shares and Resulting Issuer Common Shares issuable upon exercise of the Resulting Issuer
 Options and Company Warrants have been reserved for issuance by all necessary action on the
 part of Purchaser and, when issued by Purchaser and delivered by Purchaser, will be validly
 issued and will be outstanding as fully paid and non-assessable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) Purchaser
 is a "reporting issuer" and not on the list of reporting issuers in default in
 the provinces of British Columbia, Alberta and Ontario and, other than in respect of the
 Purchaser's failure to file the audited financial statements comprising the Purchaser
 Financial Statements, is in compliance, in all material respects, with the Applicable Securities
 Laws of such provinces and the applicable rules and regulations of the CSE. The issued and
 outstanding Purchaser Common Shares are listed and posted for trading on the CSE, and the
 Payment Shares, Earn-Out Shares, and Resulting Issuer Common Shares issuable upon exercise
 of the Resulting Issuer Options and Company Warrants when, and if, issued, will be listed
 and posted for trading on the CSE. Other than with respect to the Purchaser Financial Statements,
 no delisting, suspension of trading in, or cease trading order with respect to, the Purchaser
 Common Shares or any other securities of Purchaser is in effect, pending or, to the knowledge
 of Purchaser, threatened, and no legal proceedings have been instituted that might result
 in any such action being taken or order being made, and no written notification or other
 communication in writing from a securities regulator threatening to take any such action
 or make any such order has been received by Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) Other
 than the audited financial statements comprising the Purchaser Financial Statements, Purchaser
 has prepared and filed with the securities regulators in each of the jurisdictions where
 it is a "reporting issuer", and under its profile on System for Electronic Document
 Analysis and Retrieval, all material documents required to be filed by it under Applicable
 Securities Laws and the rules of the CSE. All documents and information included in the public
 record were, as of their respective dates, in compliance in all material respects with applicable
 Laws and did not, as of their respective dates, contain a misrepresentation (as such term
 is defined in the Securities Act (British Columbia) and its equivalent legislation in the
 United States), untrue statement of material fact or omit to state a material fact required
 to be stated therein or required in order to make the statements therein, in light of the
 circumstances under which they were made. As of the date of this Agreement (i) Purchaser
 has not filed any confidential material change report or similar document that is not generally
 available to the public with any securities regulator or any stock exchange, and (ii) there
 is no adverse "material change" (as such term is defined the *Securities Act* (British Columbia) and its equivalent legislation in the United States) or material fact
 in respect of Purchaser or the Purchaser Common Shares that has not been generally disclosed
 (within the meaning of Applicable Securities Laws).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) The
 Purchaser has conducted all transactions, negotiations, discussions and dealings in full
 compliance with anti-bribery and anti-corruption Laws and regulations applicable in any jurisdiction
 in which they are located or conducting business. The Purchaser has not made any offer, payment,
 promise to pay or authorization of payment of money or anything of value to any government
 official, or any other person while having reasonable grounds to believe that all or a portion
 of such money or thing of value will be offered, given or promised, directly or indirectly,
 to a government official, for the purpose of (i) assisting the parties in obtaining, retaining
 or directing business; (ii) influencing any act or decision of a government official in his
 or its official capacity; (iii) inducing a government official to do or omit to do any act
 in violation of his or its lawful duty, or to use his or its influence with a government
 or instrumentality thereof to affect or influence any act or decision of such government
 or department, agency, instrumentality or entity thereof; or (iv) securing any improper advantage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(mm) The
 operations of the Purchaser are and have been conducted at all times in compliance with applicable
 financial recordkeeping and reporting requirements of the money laundering statutes of all
 applicable jurisdictions, the rules and regulations thereunder and any related or similar
 rules, regulations or guidelines, issued, administered or enforced by any Governmental Authority
 (collectively, the "**Applicable Money Laundering Laws**") and no action,
 suit or proceeding by or before any Governmental Authority involving the Purchaser with respect
 to Applicable Money Laundering Laws is, to the knowledge of the Purchaser, pending or threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) The
 Purchaser's Cash balance as of the Closing Date will equal or exceed the Minimum Cash
 Balance.

No representation or warranty by Purchaser in this Agreement and no statement contained in the Purchaser Disclosure Letter or any certificate or other document furnished or to be furnished to the Company pursuant to this Agreement contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained therein in any material respect as of the date they were provided, in light of the circumstances in which they are made, not misleading.

**ARTICLE 4**

**REPRESENTATIONS AND WARRANTIES OF THE COMPANY**

**Section 4.1 Representations and Warranties of the Company.**

The Company represents and warrants to and in favour of Purchaser and Subco as follows, and acknowledges that Purchaser and Subco are relying upon such representations and warranties in connection with the completion of the transactions contemplated herein:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Company is a corporation duly incorporated and validly existing under the laws of the State
 of Nevada and has all requisite corporate power and corporate authority and is duly qualified
 and holds all Permits necessary or required to carry on its business as now conducted in
 each of the jurisdictions it carries on business and to own, lease or operate its assets
 and properties and neither the Company nor, to the knowledge of the Company, any other Person,
 has taken any steps or proceedings, voluntary or otherwise, requiring or authorizing the
 Company's dissolution or winding up, and the Company has all requisite corporate power
 and corporate authority to enter into this Agreement and to carry out its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Other
 than as set forth in Section 4.1(b) of the Company Disclosure Letter, the Company has no
 direct or indirect Subsidiaries nor any investment in any Person or any agreement, option
 or commitment to acquire any such investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The
 Company is conducting its business in compliance in all material respects with all applicable
 Laws and regulations of each jurisdiction in which it carries on business and has not received
 a notice of non-compliance, and, to the knowledge of the Company, there are no facts that
 would give rise to a notice of material noncompliance with any such Laws and regulations.
 Each of the Company and its Subsidiaries and their respective Affiliates hold the applicable
 Cannabis Licenses required to conduct their present business. Each Cannabis License is in
 full force and effect in all material respects and has not been revoked, suspended, cancelled,
 rescinded, terminated, modified and has not expired. There are no pending or, to the Company's
 knowledge, threatened actions by or before any Governmental Authority to revoke, suspend,
 cancel, rescind, terminate and/or materially adversely modify any Cannabis License. True
 and complete copies of all of Cannabis Licenses held by the Company or its Subsidiaries have
 been made available to the Purchaser and are set forth in Section 4.1(c) of the Company Disclosure
 Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Other
 than as set forth in Section 4.1(d) of the Company Disclosure Letter, no consent, approval,
 order or authorization of, or registration, declaration or filing with, any third party or
 Governmental Authority is required by or with respect to the Company in connection with the
 execution and delivery of and the performance by the Company of its obligations under this
 Agreement, the Ancillary Agreements and the consummation by the Company of the transactions
 contemplated hereunder and thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Since
 January 1, 2021 (i) the Company and its Subsidiaries have operated their respective businesses
 in the Ordinary Course, and (ii) there has not been any Material Adverse Change with respect
 to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each
 of the execution and delivery of this Agreement and the applicable Ancillary Agreements,
 the performance by the Company of its obligations hereunder and thereunder and the consummation
 of the transactions contemplated in this Agreement and the applicable Ancillary Agreements
 do not and will not conflict with or result in a material breach or violation of any of the
 terms or provisions of, or constitute a material default under (whether after notice or lapse
 of time or both), (i) the Articles of Incorporation, Bylaws or resolutions of the Company
 which are in effect at the date hereof; or (ii) any material mortgage, note, indenture, contract,
 agreement, joint venture, partnership, instrument, lease or other document to which the Company
 is a party or by which it is bound.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This
 Agreement has been duly authorized and executed by the Company and constitutes a valid and
 binding obligation of the Company enforceable against the Company in accordance with its
 terms, except as enforcement thereof may be limited by bankruptcy, insolvency, reorganization,
 moratorium and other Laws relating to or affecting the rights of creditors generally and
 except as limited by the application of equitable principals when equitable remedies are
 sought, and by the fact that rights to indemnity, contribution and waiver, and the ability
 to sever unenforceable terms, may be limited by applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Other
 than as set forth in Section 4.1(h) of the Company Disclosure Letter, other than this Agreement,
 the Company is not currently party to any binding agreement in respect of: (i) the purchase
 of any material property or assets or any interest therein or the sale, transfer or other
 disposition of any material property or assets or any interest therein currently owned, directly
 or indirectly, by the Company whether by asset sale, transfer of shares or otherwise in excess
 of $100,000 in the aggregate; or (ii) the change of control of the Company (whether by sale
 or transfer of shares or sale of all or substantially all of the property or assets of the
 Company or otherwise).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Other
 than as set forth in Section 4.1(i) of the Company Disclosure Letter, the Company Financial
 Statements are based on the books and records of the Company, and fairly present, in all
 material respects, the financial condition of the Company as of the respective dates they
 were prepared and the results of the operations of the Company for the periods indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Other
 than as set forth in Section 4.1(j) of the Company Disclosure Letter, all Taxes due and payable
 shown to be due on the Company's tax returns or required to be collected or withheld
 and remitted, by the Company have been paid, collected or withheld and remitted as applicable.
 Other than as set forth in Section 4.1(j) of the Company Disclosure Letter, all tax returns,
 declarations, remittances and filings required to be filed by the Company have been filed
 with all appropriate Governmental Authorities and all such returns, declarations, remittances
 and filings are complete and accurate and no material fact or facts have been omitted therefrom
 which would make any of them misleading. Other than as set forth in Section 4.1(j) of the
 Company Disclosure Letter, to the knowledge of the Company, no examination of any tax return
 of the Company is currently in progress by any Governmental Authorities and there are no
 issues or disputes outstanding with any Governmental Authority respecting any Taxes that
 have been paid, or may be payable, by the Company. There are no agreements, waivers or other
 arrangements with any taxation authority providing for an extension of time for any assessment
 or reassessment of Taxes with respect to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The
 Company maintains a system of internal accounting controls sufficient to provide reasonable
 assurances that (i) transactions are executed in accordance with management's general
 or specific authorization; and (ii) transactions are recorded as necessary to permit preparation
 of financial statements in conformity with IFRS and to maintain accountability for assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The
 Company Auditors who will audit the audited consolidated financial statements of the Company
 for the financial year ended December 31, 2021 will be independent public accountants for
 the purposes of IFRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) The
 authorized share capital of the Company is 250,000,000 Company Common Shares. The number
 of Company Common Shares issued and outstanding as of the date hereof is set out in Section
 4.1(m) of the Company Disclosure Letter, each of which is outstanding as fully paid and non-assessable.
 Except as set forth in Section 4.1(m) of the Company Disclosure Letter, there are no options,
 warrants or other rights, shareholder rights plans, agreements or commitments of any character
 whatsoever requiring the issuance, sale or transfer by the Company of any shares of the Company
 or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing
 a right to acquire, any shares of the Company as of the date hereof. The number of Company
 Common Shares issued and outstanding as of the Effective Time will be set out in the Company
 Capitalization Spreadsheet, each of which will be outstanding as fully paid and non-assessable.
 Except as set forth in the Company Capitalization Spreadsheet, there will be no options,
 warrants or other rights, shareholder rights plans, agreements or commitments of any character
 whatsoever requiring the issuance, sale or transfer by the Company of any shares of the Company
 or any securities convertible into, or exchangeable or exercisable for, or otherwise evidencing
 a right to acquire, any shares of the Company as of the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Except
 as set forth in Section 4.1(n) of the Company Disclosure Letter, the Company is not aware
 of any legal or governmental actions, suits, judgments, investigations or proceedings to
 which the Company, or to the knowledge of the Company, the directors or officers of the Company
 are a party or to which the property and assets of the Company is subject and, to the knowledge
 of the Company, no such proceedings have been threatened against or are pending with respect
 to the Company, or with respect to its property and assets, and the Company is not subject
 to any judgment, order, writ, injunction, decree or award of any Governmental Authority.
 Neither the Company nor any of its Subsidiaries, nor any of its assets or properties, is
 subject to any material outstanding judgment, order, writ, injunction or decree applicable
 to the Company or any of its Subsidiaries on a consolidated basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) The
 Company is not in violation of its organizational documents or, to the Company's knowledge,
 in default, in any material respect, in the performance or observance of any obligation,
 agreement, covenant or condition contained in any material Contract to which it is a party
 or by which it or its property and assets may be bound and all material Contracts to which
 the Company is a party are in good standing in all respects and in full force and effect,
 other than the Company is currently in arrears in remitting rental payments to its landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) Other
 than as set forth in Section 4.1(p) of the Company Disclosure Letter, the Company owns or
 has all necessary rights to use (as currently used) all material property and assets owned
 or used that are necessary in the conduct of the business of the Company as now conducted
 free and clear of any actual, pending or, to the knowledge of the Company, threatened claims,
 liens, charges, options, set-offs, free-carried interests, royalties, encumbrances, security
 interests or other interests whatsoever other than such security interests, liens and encumbrances
 granted in the Ordinary Course of business by the Company. Such assets comprise all of the
 assets, properties and rights used in and necessary to the conduct of the business of the
 Company and are adequate and sufficient to conduct the business of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) Except
 as set forth in Section 4.1(q) of the Company Disclosure Letter, the Company holds all material
 Permits necessary for it to own, lease and license its property and assets and carry on its
 business, as now carried on as of the date of this Agreement, in each jurisdiction where
 such business is carried on, including, but not limited to, Permits from Governmental Authorities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) Section
 4.1(r) of the Company Disclosure Letter sets forth a complete and accurate list of all of
 the following that constitutes material Intellectual Property: (i) registered Intellectual
 Property, (ii) pending applications for registration of Intellectual Property, (iii) all
 computer software (other than commercially available, off-the-shelf software with a replacement
 cost or annual license fee of less than $10,000), and (iv) trade or corporate names and material
 unregistered trademarks and service marks. Except as would not, individually or in the aggregate,
 have a Material Adverse Effect with respect to the Company, (i) to the knowledge of the Company,
 (A) the conduct of the Company's business as currently conducted does not infringe
 or otherwise violate any Person's registered Intellectual Property and (B) there is
 no claim of such infringement or other violation pending or to the knowledge of the Company,
 threatened in writing, against the Company, and (ii) to the knowledge of the Company (A)
 no Person is infringing or otherwise violating any Intellectual Property owned by the Company
 and (B) no claims of such infringement or other violation are pending or threatened in writing
 against any Person by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) The
 Systems are reasonably sufficient to operate the business of the Company as currently conducted.
 During the last three (3) years, to the Company's knowledge, there has been no unauthorized
 access, use, intrusion, or breach of security, or material failure, breakdown, performance
 reduction or other adverse event affecting any Systems that has caused any substantial disruption
 to the use of such Systems or the business of the Company or any material loss or harm to
 the Company or its personnel, property, or other assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) The
 Company has complied in all material respects with all Laws and contractual and fiduciary
 obligations as to protection and security of personal data to which it is subject. The Company
 has not received any written inquiries from or been subject to any audit or legal proceeding
 by any Governmental Authority regarding personal data. The Company has complied with its
 policies and procedures as to collection, use, processing, storage and transfer of personal
 data. No legal proceeding alleging (i) a material violation of any Person's privacy
 rights or (ii) unauthorized access, use or disclosure of personal data has been asserted
 or threatened in writing to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) Except
 for the Requisite Stockholder Vote required in connection with the Merger or as otherwise
 set forth in Section 4.1(u) in the Company Disclosure Letter, there are no third party consents
 or other approvals required to be obtained in order for the Company to complete the Acquisition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Except
 for those matters that, individually or in the aggregate, would not have a Material Adverse
 Effect with respect to the Company, (i) the Company is in compliance with all applicable
 Environmental Laws, which compliance includes obtaining, maintaining or complying with all
 Permits required under Environmental Laws for the operation of its business, (ii) there is
 no investigation, suit, claim or action relating to or arising under Environmental Laws (including,
 without limitation, relating to or arising from the Release, threatened Release or exposure
 to any Hazardous Material) that is pending or, to the knowledge of the Company, threatened
 in writing against the Company or any real property currently owned, operated or leased by
 the Company and (iii) the Company has not received any written notice of, or entered into
 any order, settlement, judgment, injunction or decree involving uncompleted, outstanding
 or unresolved liabilities or corrective or remedial obligations relating to or arising under
 Environmental Laws (including, without limitation, relating to or arising from the Release,
 threatened Release or exposure to any Hazardous Material).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) Other
 than as set forth in Section 4.1(w) of the Company Disclosure Letter, the Company is not
 a party to or bound by any collective bargaining agreement and is not currently conducting
 negotiations with any labour union or employee association.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The
 Company does not own any real property. Section 4.1(x) of the Company Disclosure Letter lists:
 (i) each Lease relating to all Leased Real Property, true and complete copies of which have
 been made available to the Purchaser, (ii) the street address of each parcel of Leased Real
 Property, (iii) the identity of the lessor, lessee and current occupant (if different from
 lessee) of each such parcel of Leased Real Property, and (iv) the current use of each such
 parcel of Leased Real Property. The Company and each Subsidiary, as applicable, has a valid
 and enforceable leasehold interest under each Lease relating to Leased Real Property used
 by it. Each Lease is in full force and effect and is valid, binding and enforceable in accordance
 with its terms against the Company or Subsidiary and each other party thereto. Neither the
 Company nor any Subsidiary is in default nor has it received a notice of default or termination
 that remains outstanding under any Lease, and to the Company's knowledge, no uncured
 default or breach on the part of the landlord exists under any Lease, and no event has occurred
 or circumstance exists which, with the delivery of notice, passage of time or both, would
 constitute such a breach or default or permit the termination, modification or acceleration
 of rent under any such Lease. The Leased Real Property comprise all of the real property
 used or intended to be used in, or otherwise related to, the business of the Company or any
 of its Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) No
 order, ruling or determination having the effect of suspending the sale or ceasing the trading
 in any securities of the Company has been issued by any Governmental Authority and is continuing
 in effect and no proceedings for that purpose have been instituted or, to the knowledge of
 the Company, are pending, contemplated or threatened by any Governmental Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) Except
 for employment contracts entered into in the Ordinary Course of business and the agreements
 set forth in Section 4.1(z) in the Company Disclosure Letter, there are no agreements with
 holders of Company Common Shares to which the Company is a party or any pooling agreements,
 voting trusts or other similar agreements with respect to the ownership or voting of any
 of the securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) The
 Company is in material compliance with all Laws respecting employment and employment practices,
 terms and conditions of employment, pay equity and wages and has not and is not engaged in
 any unfair labour practice and there has never been any material labour disruption. There
 is no action with respect to any employment-related matters, including payment of wages,
 salary or overtime pay, that has been asserted or is now pending or, to the Company's
 knowledge, threatened by or before any Governmental Authority with respect to any Persons
 currently or formerly employed (or engaged as an independent contractor) by, or who are or
 were applicants for employment with, the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(bb) Other
 than Employee Plans established or entered into in the Ordinary Course of business by the
 Company, the Company does not have any Employee Plans. The Company has made available to
 Purchaser the opportunity to review true and complete copies of documents, contracts and
 arrangements relating to the Employee Plans. The Employee Plans have been established, operated
 in the Ordinary Course and administered in all material respects in accordance with their
 terms and applicable Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(cc) Except
 as set forth in Section 4.1(cc) of the Company Disclosure Letter, neither the Company nor
 its Subsidiaries are party to any Contract, written or oral, involving an amount in excess
 of $50,000, other than this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) Neither
 the Company nor, to the knowledge of the Company, any party thereto is in default or breach
 of Contract of the Company and, to the knowledge of the Company, there exists no condition,
 event or act which, with the giving of notice or lapse of time or both would constitute a
 default or breach under any Contract of the Company which would give rise to a right of termination
 on the part of any other party to such Contract or would otherwise have a Material Adverse
 Effect on the Company. The Company has not received written, or to the knowledge of the Company,
 other notice of, any alleged breach of or alleged default under or dispute in connection
 with any Contract or of any intention of any party to any Contract of the Company to cancel,
 terminate or otherwise materially modify or not renew its relationship with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) Except
 as set out in Section 4.1(ee) Company Disclosure Letter, none of the directors or officers
 of the Company or any of its associates or Affiliates has any interest, direct or indirect,
 in any transaction with the Company that materially affects the Company and its Subsidiaries,
 taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ff) Copies
 of the minute books and records of the Company made available to Purchaser in connection
 with the due diligence investigation of the Company for the period from the date of incorporation
 to the date hereof are all of the minute books of the Company and contain copies of all material
 organizational documents, bylaws, shareholder minutes, directors minutes and committee minutes
 of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) Except
 as set out in Section 4.1(gg) of the Company Disclosure Letter, there is no Person acting
 or purporting to act at the request or on behalf of the Company that is entitled to any brokerage
 or finder's fee or other compensation in connection with the transactions contemplated
 hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) The
 Company has conducted all transactions, negotiations, discussions and dealings in full compliance
 with anti-bribery and anti-corruption Laws and regulations applicable in any jurisdiction
 in which they are located or conducting business. The Company has not made any offer, payment,
 promise to pay or authorization of payment of money or anything of value to any government
 official, or any other person while having reasonable grounds to believe that all or a portion
 of such money or thing of value will be offered, given or promised, directly or indirectly,
 to a government official, for the purpose of (i) assisting the parties in obtaining, retaining
 or directing business; (ii) influencing any act or decision of a government official in his
 or its official capacity; (iii) inducing a government official to do or omit to do any act
 in violation of his or its lawful duty, or to use his or its influence with a government
 or instrumentality thereof to affect or influence any act or decision of such government
 or department, agency, instrumentality or entity thereof; or (iv) securing any improper advantage.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The
 operations of the Company are and have been conducted at all times in compliance with Applicable
 Money Laundering Laws and no action, suit or proceeding by or before any Governmental Authority
 involving the Company with respect to Applicable Money Laundering Laws is, to the knowledge
 of the Company, pending or threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) The
 Company is not an "investment company" pursuant to the United States Investment
 Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(kk) Except
 for the representations and warranties contained in this Article 4 and the Company Disclosure
 Letter, the Company makes no other express or implied representation or warranty and hereby
 disclaims any such representations or warranties.

**ARTICLE 5**

**STOCKHOLDERS REPRESENTATIVE**

**Section 5.1 Stockholders Representative.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 Stockholders Representative is hereby appointed, authorized and empowered to act as the representative
 of the Company Stockholders for all purposes hereunder and for the benefit of the Company
 Stockholders, as the exclusive agent and attorney-in-fact to act on behalf of each of the
 Company Stockholders, in connection with and to facilitate the consummation of the Acquisition,
 which shall include the power, authority and discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 enter into amendments to this Agreement and to execute and deliver any Ancillary Agreements
 (with such modifications or changes therein as to which the Stockholders Representative,
 in its sole discretion, shall have consented) and to agree to such amendments or modifications
 thereto as the Stockholders Representative, in its sole discretion, determines to be desirable,
 in each case, whether before or after the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 execute and deliver such waivers and consents in connection with this Agreement and any Ancillary
 Agreements and the consummation of the Merger as the Stockholders Representative, in its
 sole discretion, may deem necessary or desirable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 enforce and protect the rights and interests of the Company Stockholders (including the Stockholders
 Representative, in his capacity as a Company Stockholder) and to enforce and protect the
 rights and interests of the Stockholders Representative arising out of or under or in any
 manner relating to this Agreement, and each other agreement, document, instrument or certificate
 referred to herein or therein or the transactions provided for herein or therein, including
 the Ancillary Agreements, and to take any and all actions which the Stockholders Representative
 believes are necessary or appropriate under this Agreement for and on behalf of the Company
 Stockholders, including asserting or pursuing any Claim against Purchaser, Subco, Mergeco
 or any of their Affiliates or Representatives, consenting to, compromising or settling any
 such Claims, conducting negotiations with Purchaser, Subco, Mergeco or any of their Affiliates
 and Representatives, regarding such Claims, and, in connection therewith, to: (A) assert
 or institute any Claim; (B) investigate, defend, contest or litigate any Claim initiated
 by Purchaser, Subco, Mergeco or any other Person, or by any federal, state or local Governmental
 Authority against the Stockholders Representative or against all Company Stockholders, and
 receive process on behalf of any or all such Company Stockholders in any such Claim and compromise
 or settle on such terms as the Stockholders Representative shall determine to be appropriate,
 and give receipts, releases and discharges with respect to, any such Claim; (C) file any
 proofs of debt, claims and petitions as the Stockholders Representative may deem advisable
 or necessary; and (D) file and prosecute appeals from any decision, judgment or award rendered
 in any such Claim, it being understood that the Stockholders Representative shall not (x)
 have any obligation to take any such actions, and shall not have any liability for any failure
 to take any such actions and (y) shall not have the authority to investigate, defend, contest
 or litigate any Claim (or compromise or settlement thereof) made against one or more Company
 Stockholders that is not made against all such Persons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to
 refrain from enforcing any right of the Company Stockholders or the Stockholders Representative
 arising out of or under or in any manner relating to this Agreement, or any other agreement,
 instrument or document in connection with the foregoing; provided, however, that no such
 failure to act on the part of the Stockholders Representative, except as otherwise provided
 in this Agreement, shall be deemed a waiver of any such right or interest by the Stockholders
 Representative or by such Company Stockholder unless such waiver is in writing signed by
 the waiving party or by the Stockholders Representative;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to
 make, execute, acknowledge and deliver all such other agreements, guarantees, orders, receipts,
 endorsements, notices, requests, instructions, certificates, stock powers, letters and other
 writings, and, in general, to do any and all things and to take any and all action that the
 Stockholders Representative, in its sole and absolute discretion, may consider necessary
 or proper or convenient in connection with or to implement the Merger, and all other agreements,
 documents or instruments referred to herein or therein or executed in connection herewith
 and therewith; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to
 engage such counsel, experts and other agents and consultants as it shall deem necessary
 in connection with exercising its powers and performing its function hereunder and (in the
 absence of bad faith on the part of the Stockholders Representative) to conclusively rely
 on the opinions and advice of such Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This
 Article 5 and all of the indemnities, immunities and powers granted to the Stockholders Representative
 hereunder and under this Agreement shall survive the Closing Date or any termination of this
 Agreement in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except
 as provided for herein, Purchaser, Subco and Mergeco shall have the right to rely upon all
 actions taken or omitted to be taken by the Stockholders Representative pursuant to this
 Agreement and any Ancillary Agreement, as applicable, all of which actions or omissions shall
 be legally binding upon the Company Stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The
 grant of authority provided for herein (i) is coupled with an interest and shall be irrevocable
 and survive the death, incompetency, bankruptcy or liquidation of any Company Stockholder,
 and (ii) shall survive the consummation of the Merger.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Upon
 the written request of any Company Stockholder, the Stockholders Representative shall provide
 such Person with an accounting of all monies or proceeds (including the Payment Shares and
 Earn-Out Shares) received and distributed by the Stockholders Representative, in its capacity
 as the Stockholders Representative, and shall provide such Person with such other reasonable
 information regarding the Stockholders Representative's actions and its other costs
 and expenses, in its capacity as the Stockholders Representative, as such Person may reasonably
 request.

**Section 5.2 Indemnification of Stockholders Representative.**

Except as contemplated pursuant to Section 5.1(e), the Stockholders Representative shall not be entitled to any fee, commission or other compensation for the performance of its services hereunder, but shall be entitled to the payment by the Company Stockholders of all its expenses incurred as the Stockholders Representative. In connection with this Agreement, and any Ancillary Agreement, and in exercising or failing to exercise all or any of the powers conferred upon the Stockholders Representative hereunder (i) the Stockholders Representative shall incur no responsibility whatsoever to any Company Stockholder by reason of any error in judgment or other act or omission performed or omitted hereunder or in connection with any such Ancillary Agreement, excepting only responsibility for any act or failure to act which represents gross negligence or willful misconduct, and (ii) the Stockholders Representative shall be entitled to rely on the advice of counsel, public accountants or other independent experts experienced in the matter at issue, and any error in judgment or other act or omission of the Stockholders Representative pursuant to such advice shall in no event subject the Stockholders Representative to liability to any Company Stockholders. Each of the Company Stockholders shall indemnify, pro rata based upon such Person's Pro Rata Share, the Stockholders Representative against all Losses, damages, liabilities, claims, obligations, costs and expenses, including reasonable attorneys', accountants' and other experts' fees and the amount of any judgment against them, of any nature whatsoever (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claims whatsoever), arising out of or in connection with any Claim or in connection with any appeal thereof, relating to the acts or omissions of the Stockholders Representative hereunder or otherwise in his capacity as the Stockholders Representative. The foregoing indemnification shall not apply in the event of any Claim which finally adjudicates the liability of the Stockholders Representative hereunder for its gross negligence or willful misconduct. In the event of any indemnification hereunder, upon written notice from the Stockholders Representative to the Company Stockholders as to the existence of a deficiency toward the payment of any such indemnification amount, each of the Company Stockholders shall promptly deliver to the Stockholders Representative full payment of his or her Pro Rata Share of the amount of such deficiency, in accordance with such Person's Pro Rata Share.

**ARTICLE 6**

**COVENANTS OF THE COMPANY**

The Company hereby covenants and agrees with Purchaser as follows until the earlier of the Effective Date or the termination of this Agreement in accordance with its terms:

**Section 6.1 Necessary Consents.**

The Company shall use its commercially reasonable efforts to obtain from the Company's directors, stockholders and all federal, state or other governmental or administrative bodies such approvals or consents (other than with respect to any BCC License) as are required to complete the transactions contemplated herein. Following the Closing, the Company and Purchaser shall, as promptly as possible, with respect to any BCC License, (a) make, or cause to be made, all filings and submissions required by an Governmental Authority to transfer ownership of such BCC License from the Company to the Purchaser and (ii) use commercially reasonable efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary in connection thereof.

**Section 6.2 Conduct of Business of the Company.**

The Company will operate its business in the Ordinary Course, and to the extent consistent therewith, the Company shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to preserve substantially intact its and its Subsidiaries' business organization, to keep available the services of its and its Subsidiaries' current officers and employees, to preserve its and its Subsidiaries' present relationships with customers, suppliers, distributors, licensors, licensees, and other Persons having business relationships with it. Without limiting the generality of the foregoing, between the date of this Agreement and the Effective Time, except as otherwise expressly permitted or required by this Agreement, as required by applicable Law or as set forth in Section 6.2 of the Company Disclosure Letter, the Company shall not, nor shall it permit any of its Subsidiaries to, without the prior written consent of the Purchaser (which consent shall not be unreasonably withheld, conditioned, or delayed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) split,
 combine, or reclassify any equity securities of the Company or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) repurchase,
 redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise acquire, any securities
 of the Company or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) declare,
 set aside, or pay any dividend or distribution (whether in cash, stock, property, or otherwise)
 in respect of, or enter into any Contract with respect to the voting of, any shares of its
 capital stock (other than dividends from its direct or indirect wholly-owned Subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) issue,
 sell, pledge, dispose of or encumber any debt, equity or other securities, except the issuance
 of Company Common Shares upon the exercise of any outstanding Company Options, Company Warrants,
 Company Debentures or other convertible securities outstanding on the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) borrow
 money or incur any indebtedness for money borrowed or guarantee any such indebtedness of
 another Person, issue or sell any debt securities or options, warrants, calls, or other rights
 to acquire any debt securities of the Company or any of its Subsidiaries, guarantee any debt
 securities of another Person, enter into any "keep well" or other Contract to
 maintain any financial statement condition of any other Person (other than any wholly-owned
 Subsidiary of it) or enter into any arrangement having the economic effect of any of the
 foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) make
 loans, advances, or other payments, excluding salaries and bonuses at current rates and routine
 advances to Employees of the Company for expenses incurred in the Ordinary Course or as contemplated
 pursuant to or in conjunction with the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) acquire,
 by merger, consolidation, acquisition of stock or assets, or otherwise, any business or Person
 or division thereof or make any loans, advances, or capital contributions to or investments
 in any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) transfer,
 license, sell, lease, or otherwise dispose of (whether by way of merger, consolidation, sale
 of stock or assets, or otherwise) or pledge, encumber, mortgage, or otherwise subject to
 any lien, any assets, including the capital stock or other equity interests in any Subsidiary
 of the Company; *provided,* that the foregoing shall not prohibit the Company and its
 Subsidiaries from transferring, selling, leasing, or disposing of obsolete equipment or assets
 being replaced, in each case in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) adopt
 or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization,
 or other reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter
 into or amend or modify in any material respect, or consent to the termination of (other
 than at its stated expiry date), any Contract that is material to the Company and its Subsidiaries
 or any lease with respect to material real estate or any other Contract or Lease that, if
 in effect as of the date hereof would constitute a material Contract or Lease with respect
 to material real estate hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) institute,
 settle, or compromise any Claim involving the payment of monetary damages by the Company
 or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) declare
 or pay any dividends or distribute any of the Company's properties or assets to shareholders
 or otherwise dispose of any of the Company's properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) alter,
 amend or propose to alter or amend the Company's articles or by-laws in any manner
 which may adversely affect the success of the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) except
 as otherwise permitted or contemplated herein, enter into any transaction or material Contract
 which is not in the Ordinary Course of business or engage in any business enterprise or activity
 materially different from that carried on by the Company as of the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) abandon,
 allow to lapse, sell, assign, transfer, grant any security interest in otherwise encumber
 or dispose of any Intellectual Property, or grant any right or license to any Intellectual
 Property other than pursuant to non-exclusive licenses entered into in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) provide
 any guarantee in respect of the obligations of any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) except
 as may be contemplated pursuant to the Employment Agreement between Micah Anderson and the
 Company, increase any compensation for any director, officer, Employee or consultant of the
 Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) except
 in respect of capital and operating expenditures at the Company's cannabis manufacturing
 facility located in Arvin, California, incur any expense in excess of $150,000 individually
 or make any capital expenditures, other than in the Ordinary Course of business of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) terminate
 or modify in any material respect, or fail to exercise renewal rights with respect to, any
 material insurance policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) adopt
 or implement any stockholder rights plan or similar arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) organize
 any new Subsidiary (other than those that are wholly-owned) or acquire or agree to acquire
 by merging or consolidating with, or by purchasing a substantial portion of the assets of,
 or by any other manner, any business or any corporation, partnership, association or other
 business organization or division thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) use
 funds from its treasury or the net proceeds received by the Company from the exercise of
 the Company Warrants to address or pay any tax liabilities of any Company Stockholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) agree
 or commit to do any of the foregoing.

**Section 6.3 All Other Action.**

The Company shall cooperate fully with Purchaser and will use all reasonable commercial efforts to assist Purchaser in its efforts to implement the Merger, unless such cooperation and efforts would subject the Company to liability or would be in breach of applicable statutory or regulatory requirements.

**Section 6.4 Updated Company Disclosure Letter.**

No later than 5 Business Days prior to Closing, the Company shall deliver an updated Company Disclosure Letter to reflect any updates or changes to the Company Disclosure Letter between the date hereof and the Closing Date. Any new disclosures set forth in such updated Company Disclosure Letter shall not constitute an exception to the representations and warranties set forth in Article 4, shall not limit the rights of Purchaser under this Agreement for any breach by the Company of such representations and warranties and shall not have the effect of satisfying any of the conditions to obligations of Purchaser; *provided,* that (a) if (i) such disclosure by the Company is made in order to set forth any matter, fact or item first occurring or arising after the date hereof and (ii) Purchaser has the right to, but does not elect to, terminate this Agreement in accordance with Section 10.1, then from and after the Closing, the Purchaser shall be deemed to have irrevocably waived its right to indemnification under Article 11 with respect to such matter; or (b) if such disclosure is made in order to set forth any matter, fact or item first occurring or arising on or prior to the date hereof, then from and after the Closing, Purchaser shall have the right to indemnification pursuant to Article 11 with respect to such matter, and the applicable representation and warranty (and related schedule in the Company Disclosure Letter) shall be read for purposes of Article 11 as if such disclosure had not been made by the Company hereunder.

**Section 6.5 Company Capitalization Spreadsheet.**

Three (3) Business Days prior to Closing, the Company shall deliver the Company Capitalization Spreadsheet to the Purchaser.

**Section 6.6 Company Information Statement.**

The Company shall promptly, but in no event later than ten (10) Business Days after the date hereof arrange to provide to each Company Stockholder an information statement (as amended or supplemented, the "**Information Statement**"), for Company Stockholders to adopt this Agreement and approve the Merger. The Information Statement shall include information regarding (i) the Company and the Purchaser (the latter of which shall be furnished by the Purchaser no later than five (5) Business Days after the date hereof), (ii) the terms of the Merger and this Agreement, (ii) the notice of appraisal rights required pursuant to the NRS to Company Stockholders who may be entitled to elect appraisal rights under such Laws, (iv) the notice required by Section 92A.410 of the NRS, and (v) the written consent of the Company Stockholder and Accredited Investor Certification to be executed by the Company Stockholders who have not yet executed the Accredited Investor Certifications and written consent of the Company Stockholder.

**Section 6.7 Audited Company Financial Statements**

On or before 120 days following the Closing Date, the Company shall provide to the Purchaser audited financial statements of the Company for the periods ended December 31, 2021 and 2020, prepared in accordance with IFRS and, if any, unaudited interim financial statements of the Company most recently ended prior to the Closing Date prepared in accordance with IFRS.

**Section 6.8 Notices of Certain Events**

Subject to applicable Law, the Company shall notify the Purchaser and Subco, promptly of: (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement; and (c) any event, change, or effect between the date of this Agreement and the Effective Time which individually or in the aggregate causes or is reasonably likely to cause or constitute: (i) a material breach of any of its representations, warranties, or covenants contained herein, or (ii) the failure of any of the conditions set forth in Section 8.1 of this Agreement to be satisfied; provided that, the delivery of any notice pursuant to this Section 6.7 shall not cure any breach of, or noncompliance with, any other provision of this Agreement or limit the remedies available to the party receiving such notice.

**ARTICLE 7**

**COVENANTS OF PURCHASER**

Purchaser hereby covenants and agrees with the Company as follows until the earlier of the Effective Date or the termination of this Agreement in accordance with its terms, or as otherwise set forth in the applicable covenant:

**Section 7.1 Necessary Consents.**

Purchaser shall use its reasonable efforts to obtain from Purchaser's directors, shareholders, if applicable, and all federal, provincial, municipal or other governmental or administrative bodies such approvals or consents as are required to complete the transactions contemplated herein. Following the Closing, the Company and Purchaser shall, as promptly as possible, with respect to any BCC License, (a) make, or cause to be made, all filings and submissions required by an Governmental Authority to transfer ownership of such BCC License from the Company to the Purchaser and (ii) use commercially reasonable efforts to obtain, or cause to be obtained, all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary in connection thereof.

**Section 7.2 Non-Solicitation.**

Purchaser hereby covenants and agrees until the Termination Date not to, directly or indirectly, solicit, initiate, knowingly encourage, cooperate with or facilitate (including by way of furnishing any non-public information or entering into any form of agreement, arrangement or understanding) the submission, initiation or continuation of any oral or written inquiries or proposals or expressions of interest regarding, constituting or that may reasonably be expected to lead to any activity, arrangement or transaction or propose any activities or solicitations in opposition to or in competition with the Acquisition, and without limiting the generality of the foregoing, not to induce or attempt to induce any other person to initiate any shareholder proposal or "takeover bid," exempt or otherwise, within the meaning of the *Securities Act* (British Columbia), for securities of Purchaser, nor to undertake any transaction or negotiate any transaction which would be or potentially could be in conflict with the Acquisition, including, without limitation, allowing access to any third party (other than its representatives) to conduct due diligence, nor to permit any of its officers or directors to do so, except as required by statutory obligations or in respect of which Purchaser board of directors determines, in its good faith judgment, after receiving advice from its legal advisors, that failure to recommend such alternative transaction to Purchaser shareholders would be a breach of its fiduciary duties under applicable law. In the event Purchaser or any of its Affiliates, including any of their officers or directors, receives any form of offer or inquiry in respect of any of the foregoing, Purchaser shall forthwith (in any event within one (1) Business Day following receipt) notify the Company of such offer or inquiry and provide the Company with such details as it may request.

**Section 7.3 Conduct of Business of the Purchaser**

Purchaser will operate its business in the Ordinary Course, and to the extent consistent therewith, the Purchaser shall, and shall cause each of its Subsidiaries to, use its reasonable best efforts to preserve substantially intact its and its Subsidiaries' business organization, to keep available the services of its and its Subsidiaries' current officers and employees, to preserve its and its Subsidiaries' present relationships with customers, suppliers, distributors, licensors, licensees, and other Persons having business relationships with it. Without limiting the generality of the foregoing, between the date of this Agreement and the Effective Time, except as otherwise expressly permitted or required by this Agreement, or as required by applicable Law, the Purchaser shall not, nor shall it permit any of its Subsidiaries to, without the prior written consent of the Company (which consent shall not be unreasonably withheld, conditioned, or delayed):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) split,
 combine, or reclassify any equity securities of the Purchaser or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) repurchase,
 redeem, or otherwise acquire, or offer to repurchase, redeem, or otherwise acquire, any securities
 of the Purchaser or any Subsidiary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) declare,
 set aside, or pay any dividend or distribution (whether in cash, stock, property, or otherwise)
 in respect of, or enter into any Contract with respect to the voting of, any shares of its
 capital stock (other than dividends from its direct or indirect wholly-owned Subsidiaries);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) issue,
 sell, pledge, dispose of or encumber any debt, equity or other securities, except in connection
 with or the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) borrow
 money or incur any indebtedness for money borrowed or guarantee any such indebtedness of
 another Person, issue or sell any debt securities or options, warrants, calls, or other rights
 to acquire any debt securities of the Purchaser or any of its Subsidiaries, guarantee any
 debt securities of another Person, enter into any "keep well" or other Contract
 to maintain any financial statement condition of any other Person (other than any wholly-owned
 Subsidiary of it) or enter into any arrangement having the economic effect of any of the
 foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) make
 any loans, advances or other payments other than payment of professional fees or expenses
 in connection with or ancillary to the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) acquire,
 by merger, consolidation, acquisition of stock or assets, or otherwise, any business or Person
 or division thereof or make any loans, advances, or capital contributions to or investments
 in any Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) transfer,
 license, sell, lease, or otherwise dispose of (whether by way of merger, consolidation, sale
 of stock or assets, or otherwise) or pledge, encumber, mortgage, or otherwise subject to
 any lien, any assets, including the capital stock or other equity interests in any Subsidiary
 of the Purchaser; *provided, that* the foregoing shall not prohibit the Purchaser and
 its Subsidiaries from transferring, selling, leasing, or disposing of obsolete equipment
 or assets being replaced, in each case in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) adopt
 or effect a plan of complete or partial liquidation, dissolution, restructuring, recapitalization,
 or other reorganization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) enter
 into or amend or modify in any material respect, or consent to the termination of (other
 than at its stated expiry date), any Contract that is material to the Purchaser and its Subsidiaries
 or any lease with respect to material real estate or any other Contract or Lease that, if
 in effect as of the date hereof would constitute a material Contract or Lease with respect
 to material real estate hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) institute,
 settle, or compromise any Claim involving the payment of monetary damages by the Purchaser
 or any of its Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) declare
 or pay any dividends or distribute any of Purchaser's properties or assets to shareholders
 or otherwise of any of the Purchaser's properties or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) alter,
 amend or propose to alter or amend Purchaser's notice of articles or articles in any
 manner which may adversely affect the success of the transactions contemplated herein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) except
 as otherwise permitted or contemplated herein, enter into any transaction or material Contract
 which is not in the Ordinary Course of business or engage in any business enterprise or activity
 materially different from that carried on by Purchaser as of the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) abandon,
 allow to lapse, sell, assign, transfer, grant any security interest in otherwise encumber
 or dispose of any Intellectual Property, or grant any right or license to any Intellectual
 Property other than pursuant to non-exclusive licenses entered into in the Ordinary Course;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) provide
 any guarantee in respect of the obligations of any person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) increase
 any compensation for any director, officer, Employee or consultant of Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) incur
 any expense in excess of $100,000 individually or in the aggregate or make any capital expenditures,
 other than in the Ordinary Course of business of the Purchaser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) terminate
 or modify in any material respect, or fail to exercise renewal rights with respect to, any
 material insurance policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) adopt
 or implement any stockholder rights plan or similar arrangement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) organize
 any new Subsidiary (other than those that are wholly-owned) or acquire or agree to acquire
 by merging or consolidating with, or by purchasing a substantial portion of the assets of,
 or by any other manner, any business or any corporation, partnership, association or other
 business organization or division thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) use
 funds from its treasury or the net proceeds received by the Purchaser from the exercise of
 any outstanding convertible securities of the Purchaser to address or pay any tax liabilities
 of any shareholder of the Purchaser; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) agree
 or commit to do any of the foregoing.

**Section 7.4 Reasonable Best Efforts.**

Purchaser and Subco shall cooperate fully with the Company and will use all reasonable best efforts to assist the Company in its efforts to consummate and make effective, and to satisfy all conditions to, as promptly as reasonably practicable (and in any event no later than the date that is 60 days following the date hereof), the Merger and the transactions contemplated by this Agreement, including*:* (i) the obtaining of all necessary Permits, waivers, and actions or nonactions from a Governmental Authority and the making of all necessary registrations, filings, and notifications (including filings with a Governmental Authority) and the taking of all steps as may be necessary to obtain an approval or waiver from, or to avoid an action or proceeding by, any a Governmental Authority; (ii) the obtaining of all necessary consents or waivers from third parties; and (iii) the execution and delivery of any additional instruments necessary to consummate the Merger and to fully carry out the purposes of this Agreement, including without limitation the Supplemental Indenture. Purchaser and Subco shall, subject to applicable Law, promptly: (A) cooperate and coordinate with the Company in the taking of the actions contemplated by clauses (i), (ii), and (iii) immediately above; and (B) supply the Company with any information that may be reasonably required in order to effectuate the taking of such actions. Purchaser and Subco shall promptly inform the Company of any communication from any Governmental Authority regarding any of the transactions contemplated by this Agreement.

**Section 7.5 Notices of Certain Events**

Subject to applicable Law, Purchaser and Subco shall notify the Company, promptly of: (a) any notice or other communication from any Person alleging that the consent of such Person is or may be required in connection with the transactions contemplated by this Agreement; (b) any notice or other communication from any Governmental Authority in connection with the transactions contemplated by this Agreement; and (c) any event, change, or effect between the date of this Agreement and the Effective Time which individually or in the aggregate causes or is reasonably likely to cause or constitute: (i) a material breach of any of its representations, warranties, or covenants contained herein, or (ii) the failure of any of the conditions set forth in Section 8.2 of this Agreement to be satisfied; provided that, the delivery of any notice pursuant to this Section 7.5 shall not cure any breach of, or noncompliance with, any other provision of this Agreement or limit the remedies available to the party receiving such notice.

**Section 7.6 Subco.**

Subco shall be validly subsisting and in good standing under the NRS immediately prior to the Merger. Purchaser covenants and agrees that Subco shall not carry on any business, shall not enter into any contracts, agreements, commitments, indentures or other instruments prior to the Closing Date other than as required to effect the Merger and shall be debt free as of the time of the Merger.

**Section 7.7 Stockholder Approval.**

Subject to and conditioned upon a determination at any time that approval of this Agreement, the Merger and the transaction contemplated hereby by the Purchaser's stockholders and/or the CSE is required at any time under applicable Law (including Applicable Securities Laws) or by the rules and regulations of the CSE, the Purchaser shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) promptly
 notify the Company of such fact;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as
 promptly as practicable after the date thereof, prepare with the assistance, cooperation
 and commercially reasonable efforts of the Company, and file with all applicable Governmental
 Authorities (including the CSE, as applicable) all necessary statements, documents, materials
 for the purpose of (i) soliciting proxies from Purchaser's stockholders for the approval
 of this Agreement and the Merger and (ii) approval of all Governmental Authorities (including
 the CSE) of the Agreement, the Merger and the issuance of all Resulting Issuer Common Shares
 (collectively, "**Purchaser Transaction Approvals** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) take
 any and all reasonable and necessary actions required to satisfy the requirements of applicable
 Law, Applicable Securities Law and the regulations of the CSE in connection with the Purchaser
 Transaction Approvals, if any.

**Section 7.8 Warrant Exercise Price.**

The Purchaser covenants and agrees that it will not, for a period of 6 months following the Closing Date, reduce the exercise price of any outstanding warrants to purchase Purchaser Common Shares.

**Section 7.9 Further Assurances.**

Purchaser will take all action necessary to cause Subco to perform its obligations under this Agreement and to consummate the Merger on the terms and conditions set forth in this Agreement. At and after the Effective Time, the officers and directors of Mergeco shall execute and deliver, in the name and on behalf of Mergeco, any deeds, bills of sale, assignments, or assurances and to take and do, in the name and on behalf of Mergeco, any other actions and things to vest, perfect, or confirm of record or otherwise in Mergeco any and all right, title, and interest in, to and under any of the rights, properties, or assets of the Company acquired or to be acquired by Mergeco as a result of, or in connection with, the Merger.

**Section 7.10 Updated Purchaser Disclosure Letter.**

No later than 5 Business Days prior to Closing, the Purchaser shall deliver an updated Purchaser Disclosure Letter to reflect any updates or changes to the Purchaser Disclosure Letter between the date hereof and the Closing Date. Any new disclosures set forth in such updated Purchaser Disclosure Letter shall not constitute an exception to the representations and warranties set forth in Article 3, shall not limit the rights of the Company under this Agreement for any breach by the Purchaser of such representations and warranties and shall not have the effect of satisfying any of the conditions to obligations of Company; *provided,* that (a) if (i) such disclosure by the Purchaser is made in order to set forth any matter, fact or item first occurring or arising after the date hereof and (ii) the Company has the right to, but does not elect to, terminate this Agreement in accordance with Section 10.1, then from and after the Closing, the Company shall be deemed to have irrevocably waived its right to indemnification under Article 11 with respect to such matter; or (b) if such disclosure is made in order to set forth any matter, fact or item first occurring or arising on or prior to the date hereof, then from and after the Closing, Company shall have the right to indemnification pursuant to Article 11 with respect to such matter, and the applicable representation and warranty (and related schedule in the Purchaser Disclosure Letter) shall be read for purposes of Article 11 as if such disclosure had not been made by the Purchaser hereunder.

**ARTICLE 8**

**CONDITIONS PRECEDENT**

**Section 8.1 Conditions for the Benefit of Purchaser.**

The transactions contemplated herein are subject to the following conditions to be fulfilled or performed on or prior to the Closing Date, which conditions are for the exclusive benefit of Purchaser and may be waived, in whole or in part, by Purchaser in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Truth of Representations and Warranties.** With respect to the representations and warranties
 of the Company set forth in Article 4 (in each case as qualified by the Company Disclosure
 Letter and as updated pursuant to Section 6.4):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Company Fundamental Representations shall be true and correct in all respects as of the date
 of this Agreement and as of the Closing Date as if made on and as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 representations and warranties made by the Company in this Agreement that are qualified by
 materiality or the expression "Material Adverse Effect" shall be true and correct
 as of the date of this Agreement and as of the Closing Date as if made on and as of the Closing
 Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 other representations and warranties of the Company in this agreement shall be true and correct
 in all material respects as of the date of this Agreement and as of the Closing Date as if
 made on and as of the Closing Date,

in each case except to the extent that such representation and warranty expressly speaks as of an earlier date, in which case such representation and warranty shall be true and correct as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance of Obligations.** The Company shall have performed, fulfilled or complied with, in all
 material respects, all of its obligations, covenants and agreements contained in this Agreement
 and in any Ancillary Agreement to be fulfilled or complied with by the Company at or prior
 to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Approvals and Consents.** All required approvals, consents and authorizations of third parties in
 respect of the transactions contemplated herein, including without limitation all necessary
 shareholder and regulatory approvals (other than with respect to the Company's BCC
 Licenses, which may be obtained after Closing), shall have been obtained on terms acceptable
 to Purchaser acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Deliveries.** The Company shall deliver or cause to be delivered to Purchaser the closing documents
 set forth in Section 9.2 in a form satisfactory to Purchaser acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Proceedings.** All proceedings to be taken in connection with the transactions contemplated in this
 Agreement and any Ancillary Agreement shall be satisfactory in form and substance to Purchaser,
 acting reasonably, and Purchaser shall have received copies of all instruments and other
 evidence as it may reasonably request in order to establish the consummation or closing of
 such transactions and the taking of all necessary proceedings in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **No Legal Action or Prohibition of Law.** There shall be no action or proceeding pending or
 threatened by any Person in any jurisdiction, or any applicable Laws proposed, enacted, promulgated
 or applied, to enjoin, restrict or prohibit any of the transactions contemplated by this
 Agreement or which could reasonably be expected to result in a Material Adverse Effect on
 the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Securities Law Exemptions.** The issuance of all securities of the Resulting Issuer contemplated hereunder
 to be issued in connection with the Merger or otherwise pursuant to this Agreement shall
 be exempt from, or not subject to, the registration requirements of the U.S. Securities Act,
 and all applicable state securities Laws and shall be exempt from the prospectus requirements
 of Applicable Securities Laws in Canada either by virtue of exemptive relief from the securities
 authorities of each of the provinces of Canada or by virtue of exemptions under Applicable
 Securities Laws and shall not be subject to resale restrictions under Applicable Securities
 Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Company Capitalization Spreadsheet**. The Purchaser shall have received the Company Capitalization
 Spreadsheet, in a form satisfactory to the Purchaser, acting reasonably.

**Section 8.2 Conditions for the Benefit of the Company.**

The transactions contemplated herein are subject to the following conditions to be fulfilled or performed on or prior to the Closing Date, which conditions are for the exclusive benefit of the Company and may be waived, in whole or in part, by the Company in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Truth of Representations and Warranties.** With respect to the representations and warranties
 of Purchaser set forth in Article 3 of this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Purchaser Fundamental Representations shall be true and correct in all respects as of the
 Closing Date as if made on and as of the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the
 representations and warranties made by Purchaser in this Agreement that are qualified by
 materiality or the expression "Material Adverse Effect" shall be true and correct
 as of the Closing Date as if made on and as of the Closing Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all
 other representations and warranties of Purchaser in this Agreement shall be true and correct
 in all material respects as if made on and as of the Closing Date, in each case, except to
 the extent that such representation and warranty expressly speaks as of an earlier date,
 in which case such representation and warranty shall be true and correct as of such earlier
 date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Performance of Obligations.** Purchaser shall have performed, fulfilled or complied with, in all material
 respects, all of its obligations, covenants and agreements contained in this Agreement and
 in any Ancillary Agreement to be fulfilled or complied with by Purchaser at or prior to the
 Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **No Material Adverse Change**. There shall have been no Material Adverse Change in the business,
 results of operations, assets, liabilities, financial condition or affairs of Purchaser or
 any subsidiaries of the Purchaser, or any change that would, individually or in the aggregate,
 reasonably be expected to constitute a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Approvals and Consents.** All required approvals, consents and authorizations of third parties in
 respect of the transactions contemplated herein, including without limitation all necessary
 shareholder and regulatory approvals (other than with respect to the Company's BCC
 Licenses, which will be obtained after Closing), shall have been obtained on terms acceptable
 to the Company acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Issuance.** The Resulting Issuer Common Shares that are issued as consideration for the Company Common
 Shares at Closing shall be issued as fully paid and non-assessable Resulting Issuer Common
 Shares, free and clear of any and all encumbrances, liens, charges and demands of whatsoever
 nature;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Securities Law Exemptions.** The issuance of all securities of the Resulting Issuer contemplated hereunder
 to be issued in connection with the Merger or otherwise pursuant to this Agreement shall
 be exempt from, or not subject to, the registration requirements of the U.S. Securities Act,
 and all applicable state securities Laws and shall be exempt from the prospectus requirements
 of Applicable Securities Laws in Canada either by virtue of exemptive relief from the securities
 authorities of each of the provinces of Canada or by virtue of exemptions under Applicable
 Securities Laws and shall not be subject to resale restrictions under Applicable Securities
 Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Deliveries.** Purchaser and Subco, as applicable shall deliver or cause to be delivered to the Company,
 the closing documents as set forth in Section 9.3 in a form satisfactory to the Company,
 acting reasonably.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Proceedings.** All proceedings to be taken in connection with the transactions contemplated in this
 Agreement and any Ancillary Agreement shall be satisfactory in form and substance to the
 Company, acting reasonably, and the Company shall have received copies of all instruments
 and other evidence as it may reasonably request in order to establish the consummation or
 closing of such transactions and the taking of all necessary proceedings in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **No Legal Action or Prohibition of Law.** There shall be no action or proceeding pending or
 threatened by any Person in any jurisdiction, or any applicable Laws proposed, enacted, promulgated
 or applied, to enjoin, restrict or prohibit any of the transactions contemplated by this
 Agreement or which could reasonably be expected to result in a Material Adverse Effect on
 Purchaser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Requisite Stockholder Vote**. This Agreement and the Merger shall have been approved by the Requisite
 Stockholder Vote.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Purchaser Transaction Approvals**. All Purchaser Transaction Approvals, if any, shall have been obtained
 and the Company shall have received evidence satisfactory to the Company to that effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) **Cash Balance**. The Purchaser's Cash shall equal or exceed the Minimum Cash Balance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) **Purchaser Financial Statements**. The Purchaser shall have filed (i) audited financial statements
 (including the related notes thereto) of the Company and its consolidated subsidiaries for
 the year ended July 31, 2021, (ii) unaudited income statement of the Company and its consolidated
 subsidiaries for the three months ended October 31, 2021, and (iii) unaudited statement of
 financial position of the Company and its subsidiaries dated October 31, 2021, such financial
 statements having been prepared in conformity with IFRS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) **No Cease Trade Order**. The Purchaser shall have delivered evidence satisfactory to the Company
 that the Purchaser is not subject to any cease trade or other order of any applicable stock
 exchange or securities regulatory authority which may operate to prevent or restrict trading
 of any securities of the Purchaser, and no such order being pending before any applicable
 stock exchange or securities regulatory authority, whether as a result of any failure of
 the Company to file the financial statements pursuant to Section 8.2(m) or otherwise (including,
 for greater certainty, the management cease trade in effect as of the date of this Agreement).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) **Purchaser's Liabilities**. The Purchaser's liabilities as determined in accordance with IFRS,
 excluding lease payable, payroll payable, derivative liability and accounts payable shall
 not exceed $500,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) **Issuance of Purchaser Common Shares to Mark Smith**. Immediately prior to the Closing, the 15,000,000
 Purchaser Common Shares payable to Mark Smith in accordance with the terms of the Smith Employment
 Agreement shall have been issued and deposited in escrow with a third-party escrow agent
 pursuant to the terms of the Escrow Agreement.

**ARTICLE 9**

**CLOSING**

**Section 9.1 Time of Closing.**

The Closing of the transactions contemplated herein shall be held remotely via the electronic exchange of counterpart signature pages on the Closing Date, or in such other manner or at such other time or date as the parties may mutually agree upon in writing.

**Section 9.2 Company Closing Documents.**

On Closing, the Company shall deliver to Purchaser the following documents:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a
 certificate signed on behalf of the Company by a duly authorized officer certifying as to
 (i) the Company's Articles of Incorporation and Bylaws in effect immediately prior
 to Closing, (ii) the resolutions of the board of directors of the Company approving the Merger
 and the transactions contemplated hereby, (ii) receipt of the Requisite Stockholder Approval
 for the Merger and (iv) the incumbency of the officers and directors of the Company executing
 the documents contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 certificate signed on behalf of the Company by a duly authorized officer of the Company to
 the effect of Section 8.1(a) and Section 8.1(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) executed
 counterpart and delivery of the applicable Employment Agreements by Micah Anderson;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 certificate of good standing from the Secretary of State of Nevada;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a
 Lock-Up Agreement, duly executed by each Company Key Personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the
 Articles of Merger, duly executed by an authorized officer of the Company.

**Section 9.3 Purchaser's Closing Documents.**

On Closing, Purchaser shall deliver to the Company the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) evidence
 that the the Payment Shares have been registered in the name of the Depositary in trust for
 the former holders of Company Common Shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a
 certificate signed on behalf of Purchaser by a duly authorized officer of Purchaser certifying
 as to (i) Purchaser's constating documents in effect immediately prior to Closing,
 (ii) the resolutions of the board of directors of Purchaser approving the Merger and the
 transactions contemplated hereby, (iii) any Purchaser Transaction Approvals and (iv) the
 incumbency of the officers and directors of Purchaser executing the documents contemplated
 by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a
 certificate signed on behalf of Subco by a duly authorized officer of Subco certifying as
 to (i) Subco's constating documents in effect immediately prior to Closing, (ii) the
 resolutions of the board of directors of Subco approving the Merger and the transactions
 contemplated hereby, and (iii) the incumbency of the officers and directors of Subco executing
 the documents contemplated by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a
 certificate of status for Purchaser from the jurisdiction in which Purchaser is incorporated,
 dated as of a date not earlier than two (2) days prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a
 certificate of status for Subco from the jurisdiction in which Subco is incorporated, dated
 as of a date not earlier than two (2) days prior to the Closing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a
 certificate signed on behalf of the Purchaser by a duly authorized officer of the Purchaser
 to the effect of Section 9.2(a), (b) and (c);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) executed
 counterpart signature pages to the Employment Agreement of Micah Anderson;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) if
 required pursuant to CSE rules applicable to Purchaser, the consent of the CSE in respect
 of the Acquisition and the issuance of the Payment Shares, Resulting Issuer Options and Resulting
 Issuer Common Shares upon exercise of the Company Warrants as contemplated in this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the
 Articles of Merger, duly executed by an authorized officer of Subco;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) the
 Supplemental Indenture, duly executed by an authorized officer of Purchaser and Odyssey Trust
 Company, as both trustee and collateral agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a
 certificate signed on behalf of the Purchaser by the Purchaser's Chief Financial Officer
 certifying (i) as to Purchaser's Cash balance, (ii) that the Purchaser's liabilities
 as determined in accordance with IFRS excluding lease payable, payroll payable, derivative
 liability and accounts payable do not exceed $500,000 and (iii) attaching evidence satisfactory
 to the Company as to such Cash balance and liabilities thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) a
 Lock-Up Agreement, duly executed by each Purchaser Key Personnel; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) such
 other certificates, documents, schedules, agreements, resolutions, consents, approvals, rulings
 or other instruments as may be reasonably requested by the Company or the Shareholder Representative
 in order to effectuate or evidence the transactions contemplated hereby.

**ARTICLE 10**

**TERMINATION**

**Section 10.1 Termination.**

This Agreement may be terminated at any time prior to Closing (the "**Termination Date**") in any of the following circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) written
 agreement of the Parties to terminate this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) by
 written notice from Purchaser if there has been a breach of any representation, warranty,
 covenant or agreement contained in this Agreement on the part of the Company and (i) the
 Company has not cured such breach within ten (10) Business Days after Purchaser delivers
 written notice of such breach to the Company (*provided*, *however*, that, no cure
 period shall be required for a breach which by its nature cannot be cured) and (ii) if not
 cured within such ten (10) Business Day period and at or prior to the Closing, such breach
 would result in the failure of any of the conditions set forth in Section 8.1 to be satisfied,
 provided further, that Purchaser shall not have the right to terminate this Agreement pursuant
 to this Section 10.1(b) if the Purchaser or Subco is then in material breach of any representation,
 warranty, covenant, or agreement hereunder that would cause any condition set forth in Section
 8.2 not to be satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) by
 written notice from Company if (i) there has been a breach of any representation, warranty,
 covenant or agreement contained in this Agreement on the part of the Purchaser or Subco and
 (i) the Purchaser or Subco has not cured such breach within ten (10) Business Days after
 Company delivers written notice of such breach to the Purchaser or Subco (*provided*, *however*, that, no cure period shall be required for a breach which by its nature cannot
 be cured) and (ii) if not cured within such ten (10) Business Day period and at or prior
 to the Closing, such breach would result in the failure of any of the conditions set forth
 in Section 8.2 to be satisfied, provided further, that Company shall not have the right to
 terminate this Agreement pursuant to this Section 10.1(c) if the Company is then in material
 breach of any representation, warranty, covenant, or agreement hereunder that would cause
 any condition set forth in Section 8.1 not to be satisfied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) by
 written notice from either Purchaser or the Company if: (i) the Effective Time has not occurred
 on or before 5:00 p.m. (Vancouver time) on March 22, 2022 (*provided*, *however*,
 that the right to terminate this Agreement under this Section 10.1(d) shall not be available
 to any Party whose willful breach has been the cause of, or resulted in, the failure of the
 Effective Time to occur on or before such date), (ii) there shall be a final and non-appealable
 order of any Governmental Authority in effect preventing consummation of the Merger, (iii)
 there shall be any final and non-appealable Law or order enacted, promulgated or issued or
 deemed applicable to the Merger by any Governmental Authority that would make consummation
 of the Merger illegal, or (iv) if the Company Stockholders do not ratify and approve the
 Merger Agreement.

**Section 10.2 Notice and Effect of Termination.**

The Party desiring to terminate this Agreement pursuant to this Article 10 shall deliver written notice of such termination to each other Party specifying with particularity the reason for such termination, and any such termination in accordance with this Section 10.2 shall be effective immediately upon delivery of such written notice to the other party. If this Agreement is terminated pursuant to this Article 10, it will become void and of no further force and effect, with no liability on the part of any party to this Agreement (or any shareholder, director, officer, Employee, agent, or Representative of such party) to any other party hereto; *provided*, *however*, that Purchaser, Subco and the Company shall each remain liable for any breaches of this Agreement prior to its termination; and *provided further* that, the provisions of this Section 10.2, Article 12 and the applicable definitions set forth in Article 1 shall remain in full force and effect and survive any termination of this Agreement.

**ARTICLE 11**

**INDEMNIFICATION**

**Section 11.1 Indemnification by the Company Stockholders.**

Subject to the limits set forth in this Article 11, from and after the Closing, each Company Stockholder shall severally (according to such Company Stockholder's Pro Rata Share), and not jointly and severally, indemnify, defend and hold harmless Purchaser and each of Purchaser's Affiliates, officers, agents, representatives, directors, employees, successors and assigns (Purchaser and such Persons are collectively hereinafter referred to as the "**Purchaser Indemnified Persons**"), from and against any and all Losses that such Purchaser Indemnified Persons may suffer, sustain, incur or become subject to, arising out of, caused by or directly or indirectly relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 inaccuracy of any representation or warranty of the Company set forth in Article 4 of this
 Agreement (as supplemented or qualified by the Company Disclosure Letter) or in any certificate,
 agreement or other document delivered pursuant hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 breach or non-fulfillment of any covenant, undertaking, agreement or other obligation of
 the Company under this Agreement, or any certificate, agreement or other document delivered
 pursuant hereto.

**Section 11.2 Indemnification by Purchaser.**

Subject to the limits set forth in this Article 11, from and after the Closing, Purchaser shall indemnify, defend and hold harmless each of the Company Stockholders and each of their respective Affiliates, officers, controlling Persons, agents, representatives, directors, employees, successors and assigns (such Persons are hereinafter collectively referred to as the "**Company Stockholder Indemnified Persons**"), from and against any and all Losses that such Company Stockholder Indemnified Persons may suffer, sustain, incur or become subject to arising out of, caused by or directly or indirectly relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 inaccuracy of any representation or warranty of Purchaser set forth in Article 3 of this
 Agreement (as supplemented or qualified by the Purchaser Disclosure Letter) or in any certificate,
 agreement or other document delivered pursuant hereto; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 breach or non-fulfillment of any covenant, undertaking, agreement or other obligation of
 Purchaser or Subco under this Agreement or in any certificate, agreement or other document
 delivered pursuant hereto.

**Section 11.3 Survival of Representations and Warranties.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 representations and warranties contained in this Agreement (other than the Fundamental Representations),
 or in any certificate or document delivered pursuant hereto, and the right to indemnity pursuant
 to Section 11.1(a) and 11.2(a) in connection therewith, shall survive the Closing and shall
 remain in full force and effect thereafter for a period of twelve (12) months after the Closing
 Date (the **"Expiration Date**") and shall thereupon terminate and be of no
 further force or effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Fundamental Representations (and the right to indemnity pursuant to Section 11.1(a) and 11.2(a)
 in connection therewith) shall survive the Closing and shall remain in full force and effect
 until the date that is thirty (30) days after the expiration of the statute of limitations
 period applicable to the matters covered thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding
 the foregoing, none of the covenants or agreements contained in this Agreement or any agreement
 delivered pursuant hereto shall survive the Closing Date other than those which by their
 terms contemplate performance after the Closing Date, which shall survive the Closing in
 accordance with their terms; *provided, however*, that claims for indemnification pursuant
 to Section 11.1(b) and 11.2(b) in connection with breaches of such covenants or agreements
 to be performed prior to or at the Closing may be made at any time after the Closing until
 the Expiration Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each
 Indemnified Party shall give written notice to the respective Indemnifying Party of any claim
 for indemnification pursuant to this Article 11; *provided, however*, that failure to
 provide such notice shall not affect such Indemnified Party's right to indemnification
 hereunder unless and only to the extent the Indemnifying Party was actually prejudiced by
 such failure to deliver notice. Any claim for indemnification made in writing by the Indemnified
 Party on or prior to the expiration of the applicable survival period shall survive until
 such claim is finally and fully resolved.

**Section 11.4 Limitation on Indemnification.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 as set forth in Section 11.4(e), no Purchaser Indemnified Person shall be entitled to any
 recovery pursuant to Section 11.1(a) and Section 11.1(b) unless and until the aggregate amount
 of Losses for which all Purchaser Indemnified Persons are otherwise entitled to indemnification
 pursuant to Section 11.1(a) and Section 11.1(b) exceeds $700,000.00 (the "**Basket** "),
 at which point the Purchaser Indemnified Persons shall be entitled to be indemnified for
 the aggregate amount of all Losses in excess of such Basket.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At
 the time of recovery by a Purchaser Indemnified Person under any indemnification claim under
 Section 11.1(a) and Section 11.1(b), the maximum aggregate recovery by all Purchaser Indemnified
 Persons pursuant to Section 11.1(a) and Section 11.1(b) shall not exceed an amount equal
 to ten percent (10.0%) of the aggregate proceeds paid to the Company Stockholders under this
 Agreement, at the time of such recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except
 as set forth in Section 11.4(e), no Company Stockholder Indemnified Person shall be entitled
 to any recovery pursuant to Section 11.2(a) and Section 11.2(b) unless and until the aggregate
 amount of Losses for which all Company Stockholder Indemnified Persons are otherwise entitled
 to indemnification pursuant to Section 11.2(a) and Section 11.2(b) exceeds the Basket, at
 which point the Company Stockholder Indemnified Persons shall be entitled to be indemnified
 for the aggregate amount of all Losses in excess of such Basket.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding
 any provision herein to the contrary, but subject to limitations on recovery set forth in
 Section 11.6, the restrictions and limitations set forth in Sections 11.4(a), 11.4(b) and
 11.4(c) shall not be applicable to claims based upon Fraud or arising under any breach of
 a Fundamental Representation; *provided, however*, that in no event shall any Company
 Stockholder be liable hereunder for any amount in excess of such Company Stockholder's
 Pro Rata Share of sixty percent (60.0%) of the proceeds paid to such Company Stockholder
 pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 amount of any and all Losses subject to indemnification pursuant to Section 11.4 or this
 Article 11 shall be determined net of any indemnity, contribution, insurance proceeds, tax
 benefit or other similar payment actually received or realized, as applicable, by such Indemnified
 Party with respect to such Losses (less the reasonable costs of recovery incurred by such
 Purchaser Indemnified Person in connection therewith).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Purchaser
 shall, and shall cause each of its Affiliates (including Mergeco) to (i) use commercially
 reasonable efforts to mitigate any of its Losses (except for Losses relating to Taxes) that
 Purchaser Indemnified Persons may recover pursuant to this Article 11 solely to the extent
 required by common law, and (ii) notify all of their respective applicable insurance carriers
 of such possible Losses and diligently seek to recover all possible insurance coverage, payments
 and proceeds relating to such Losses under any and all policies of insurance held by them.
 The Company Stockholders shall, and shall cause each of their respective Affiliates to use
 commercially reasonable efforts to mitigate any of their Losses that the Company Stockholder
 Indemnified Persons may recover pursuant to this Article 11 solely to the extent required
 by common law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Notwithstanding
 any other provision of this Agreement, no Losses shall be recoverable under this Article
 11 or otherwise under this Agreement that constitute punitive or special damages or consequential
 or indirect damages, except in the case owed to a Third Party in connection with a Third
 Party Claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Notwithstanding
 the rights of the Purchaser Indemnified Persons to recover Losses pursuant to Section 11.1,
 Purchaser and Mergeco are not aware of any facts or circumstances that would serve as the
 basis for a claim by any Purchaser Indemnified Person against Company or any Company Stockholder
 based upon a breach of any representation or warranty of the Company contained in this Agreement
 or breach of any of Company's covenants or agreement to be performed by it at or prior
 to Closing. Purchaser and Mergeco, on behalf of themselves and all Purchaser Indemnified
 Persons, shall be deemed to have waived in full any breach of any of Company's representations
 and warranties and any such covenants and agreements of which Purchaser and/or Mergeco has
 such awareness at the Closing.

**Section 11.5 Indemnification Procedure.**

Promptly after the incurrence of any Losses by any Purchaser Indemnified Person or Company Stockholder Indemnified Person (an "**Indemnified Party**"), or receipt by an Indemnified Party of notice of a Third Party Claim for which such Indemnified Party is entitled to indemnification pursuant to Section 11.1 or 11.2 (an "**Indemnifiable Claim**"), such Indemnified Party will give the Stockholders Representative written notice thereof, and if the Indemnified Party is a Company Stockholder Indemnified Party, the Stockholders Representative shall also provide the Purchaser with written notice thereof (an "**Indemnification Notice**"); *provided, however*, that delay or failure to so notify the Stockholders Representative and Purchaser, as applicable, shall only relieve the indemnifying Party (an "**Indemnifying Party**") of its obligations to the extent, if at all, that it is materially prejudiced by reasons of such delay or failure. Such Indemnification Notice by the Indemnified Party shall describe the Indemnifiable Claim in reasonable detail, shall include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the Indemnified Party. The Stockholders Representative, in the case the Indemnified Party is a Purchaser Indemnified Person, and the Purchaser, in the case the Indemnified Party is a Company Stockholder Indemnified Person, as applicable, shall have a period of thirty (30) days within which to respond to such Indemnification Notice. If the Stockholders Representative or Purchaser, as applicable, accepts responsibility for the entirety of such Indemnifiable Claim within such thirty (30) day period, the Stockholders Representative or Purchaser, whichever is the Indemnifying Party as the case may be, shall be entitled to compromise or defend, at its own expense and by counsel chosen by it and reasonably satisfactory to the Indemnified Party, such matter. If the Stockholders Representative (on behalf of the Company Stockholder Indemnified Persons) or Purchaser (on behalf of the Purchaser Indemnified Persons), as applicable, rejects responsibility for the matter set forth in an Indemnification Notice in whole or in part or does not respond within thirty (30) calendar days after receiving such Indemnification Notice, the Indemnified Party shall be free to pursue, without prejudice to any of its rights hereunder, such remedies as may be available to the Indemnified Party under applicable Law at the Indemnifying Party's expense. The applicable Indemnified Party agrees to cooperate fully with the Stockholders Representative or Purchaser, as the case may be, and its respective counsel in the defense against any such Indemnifiable Claim. In any event, the Indemnified Party shall have the right to participate in a non-controlling manner and at its own expense in the defense of such Indemnifiable Claim. Neither the Stockholders Representative nor Purchaser shall enter into a settlement of such Indemnifiable Claim without the prior written consent of the Indemnified Party (not to be unreasonably withheld, conditioned or delayed), and until such consent is obtained the Stockholders Representative or Purchaser, as applicable, shall continue the defense of such Indemnifiable Claim. If a firm offer is made to settle an Indemnifiable Claim (i) that does not involve any admission of liability or wrongdoing by any Indemnified Party or its Affiliates or the creation of financial or other obligation on the part of the Indemnified Party or its Affiliates, (ii) provides for the unconditional release of each Indemnified Party from all liabilities and obligations in connection with such Indemnifiable Claim, (iii) does not involve injunctive relief binding upon the Indemnified Party or any of its Affiliates, and (iv) such settlement does not encumber any of the material assets of any Indemnified Party or impose any restriction or condition that would apply to or materially affect any Indemnified Party or the conduct of any Indemnified Party's business, and the Indemnifying Party desires to accept and agree to such offer, the Stockholders Representative or Purchaser, as applicable, shall give written notice to that effect to the Indemnified Party. The Indemnified Party shall thereupon have the option of either consenting to such firm offer or assuming the defense of such Indemnifiable Claim. If the Indemnified Party fails to consent to such firm offer within thirty (30) calendar days after its receipt of such notice, and also fails to assume defense of such Indemnifiable Claim, the Stockholders Representative or Purchaser, as applicable, may settle the Indemnifiable Claim upon the terms set forth in such firm offer to settle such Indemnifiable Claim. If the Indemnified Party has assumed the defense pursuant to this Section 11.5, it shall not agree to any settlement without the written consent of the Stockholders Representative (in the case the Indemnified Party is a Purchaser Indemnified Person) or the Purchaser (in the case the Indemnified Party is a Company Stockholder Indemnified Person), in each case which such consent shall not be unreasonably withheld, conditioned or delayed. Notwithstanding any provisions in this Section 11.5 to the contrary, neither the Stockholders Representative (in the case the Indemnified Party is a Purchaser Indemnified Person) nor the Purchaser (in the case the Indemnified Party is a Company Stockholder Indemnified Person), shall be entitled to assume or continue control of the defense of any Indemnifiable Claim of the other Party if (i) such Indemnifiable Claim relates to or arises in connection with any governmental proceeding, action, indictment, allegation or investigation involving the Indemnified Party; (ii) such Indemnifiable Claim relates primarily to the Intellectual Property of such Indemnified Party; (iii) the Indemnified Party has been advised in writing by counsel that a reasonable likelihood exists of a conflict of interest between the Indemnifying Party and the Indemnified Party; or (iv) the Indemnifying Party fails to defend such Indemnifiable Claim in good faith. If the Indemnified Party controls the defense of any Indemnifiable Claim, the Indemnified Party shall be entitled to be reimbursed by the Indemnifying Party for its reasonable defense costs as such costs are incurred.

**Section 11.6 Remedies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding
 any provisions contained in this Agreement to the contrary, except as provided in Section
 5.2 (Indemnification of Stockholder Representative) and Section 12.10 (Specific Performance)
 or in respect of claims based upon Fraud, indemnification pursuant to the provisions of this
 Article 11 shall be the sole and exclusive remedy for any claim under this Agreement, the
 Merger or the other transactions contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 any provisions contained in this Agreement, except in respect of claims based upon Fraud,
 the Purchaser's right to set-off under Section 11.9 shall be the Purchaser Indemnified
 Persons' sole and exclusive remedies for any such claim for indemnification under this
 Article 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any
 and all amounts payable to Purchaser Indemnified Persons as a result of any claim for indemnification
 based upon Fraud by the Company shall be paid directly by the Company Stockholders to Purchaser
 in accordance with their Pro Rata Share, (i) first by set-off of any consideration payable
 to such Company Stockholders pursuant to Section 11.9, and second, if such set-off is insufficient
 to satisfy the entire Losses suffered, (ii) by wire payment of immediately available funds
 for such excess.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any
 and all amounts payable to Purchaser Indemnified Persons as a result of any claim for indemnification
 for Fraud by such Company Stockholder shall be paid directly by the applicable Company Stockholder
 to Purchaser, by wire payment of immediately available funds. Notwithstanding any provisions
 contained in this Agreement to the contrary, no Company Stockholder shall be liable for the
 Fraud committed by any other Company Stockholder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 indemnification provisions set forth in this Article 11 are intended as a bargained- for
 contractual remedy for the Indemnified Parties, contain all of the terms and provisions that
 the Parties intend be applied in any connection with any claim or action for indemnification
 pursuant to this Article 11 and are intended to be enforced without regard to principles
 of breach of contract or other Law that would result in a broader or narrower remedy.

**Section 11.7 Adjustment to Purchase Price.**

To the extent permitted by applicable Law, any indemnification payment made pursuant to this Agreement shall be treated as an adjustment to the Purchase Price for Tax purposes.

**Section 11.8 Right to Bring Actions; No Contribution.**

Notwithstanding any provision in this Article 11 or elsewhere in this Agreement to the contrary, only the Stockholders Representative shall have the right, power and authority to commence any action, suit or proceeding after the Closing, by and on behalf of any or all Company Stockholders, against Purchaser or Mergeco or any other Indemnifying Party in connection with this Agreement and the transactions contemplated hereby and thereby, and in no event shall any Company Stockholder himself, herself or itself have the right to commence any action, suit or proceeding against Purchaser or Mergeco, or any other Indemnifying Party in such connection. By virtue of the adoption of this Agreement and the approval of the Merger by the Company Stockholders, each Company Stockholder (regardless of whether or not such Company Stockholder votes in favor of the adoption of the Agreement and the approval of the Merger, whether at a meeting or by written consent in lieu thereof) shall be deemed to have waived, and shall be deemed to have acknowledged and agreed that such Company Stockholder shall not have and shall not exercise or assert (or attempt to exercise or assert), any right of contribution, right of indemnity or other right or remedy against Mergeco in connection with any indemnification obligation or any other liability to which he may become subject under or in connection with this Agreement or the related facts and circumstances underlying any such indemnification obligation or other liability.

**Section 11.9 Set-Off.**

In addition to all other remedies contemplated herein, subject to the limitations on recovery set forth in Article 11 (including, without limitation Section 11.4), Purchaser's exclusive right to payment under this Article 11 (except in the case of Fraud) shall be to set-off, deduct or retain any amount due or payable to Purchaser in respect of any claim (for indemnification) against the Company Stockholders under Section 11.1 by a reduction to any obligation of Purchaser to pay any unpaid Earn-Out Payment, in each case in accordance with each Company Stockholder's Pro Rata Share. In addition, Purchaser may carry-forward and set-off against a future Earn-Out Payment the amount of any Losses not deducted from a previous Earn-Out Payment. In no event, other than in the case of Fraud, shall Purchaser be entitled to claw-back any consideration actually paid to the Company Stockholders.

**ARTICLE 12**

**GENERAL**

**Section 12.1 Confidential Information; Press Release.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Confidential Information**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A
 Receiving Party will not disclose or use, and it will cause its Representatives not to disclose
 or use, any Confidential Information furnished, or to be furnished, by a Disclosing Party
 or its Representatives to the Receiving Party or its Representatives at any time or in any
 manner other than for purposes of evaluating and completing the transactions proposed in
 this Agreement, unless such information is known, or until such information becomes known,
 to the public without wrongful disclosure by any Disclosing Party or its Representatives,
 or such information is required, in legal counsel's written opinion, to be disclosed
 in legal or administrative proceedings; *provided*, *however*, that the Parties
 may disclose such information to their respective attorneys, accountants, consultants and
 other professionals to the extent necessary to obtain their services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) If
 this Agreement is terminated, each Receiving Party will promptly return to the Disclosing
 Party or destroy any Confidential Information and any work product produced from such Confidential
 Information in its possession or in the possession of any of its Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Press Releases**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) No
 disclosure or announcement, public or otherwise, in respect of this Agreement or the transactions
 contemplated herein will be made by Purchaser or the Company or the respective Representatives
 without the prior agreement of the other Party as to timing, content and method, hereto,
 provided that the obligations herein will not prevent any party from making, after consultation
 with the other Party, such disclosure as its counsel advises is required by applicable law
 or the rules and policies of the CSE, and provided further, that the Party making the release,
 statement, announcement, or other disclosure shall use its reasonable best efforts to allow
 the other Party reasonable time to comment on such release, statement, announcement, or other
 disclosure in advance of such issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Purchaser
 and the Company shall mutually agree upon and, as promptly as practicable after the execution
 of this Agreement, issue a press release announcing the execution of this Agreement (the
 "**Signing Press Release** "). The form, contents and timing of the Signing
 Press Release shall be subject to the review, comment and approval of the Stockholders Representative
 prior to its issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Purchaser
 and the Stockholders Representative shall mutually agree upon and, as promptly as practicable
 after the Closing, issue a press release announcing the consummation of the transactions
 contemplated by this Agreement (the "**Closing Press Release** "). The form,
 contents and timing of the Closing Press Release shall be subject to the review, comment
 and approval of the Stockholders Representative prior to its issuance.

**Section 12.2 Counterparts.**

This Agreement may be executed in several counterparts (by original or facsimile signature), each of which when so executed shall be deemed to be an original and each of such counterparts, if executed by each of the Parties, shall constitute a valid and enforceable agreement among the Parties.

**Section 12.3 Severability.**

In the event that any provision or part of this Agreement is determined by any court or other judicial or administrative body to be illegal, null, void, invalid or unenforceable, that provision shall be severed to the extent that it is so declared and the other provisions of this Agreement shall continue in full force and effect.

**Section 12.4 Applicable Law; Jurisdiction; Venue.**

This Agreement shall be governed by and construed in accordance with the laws of the State of California without giving effect to the conflict of law principles therein. Subject to Section 12.5, the Parties hereto irrevocably consent to the exclusive jurisdiction and venue of any court within San Diego County, State of California in connection with any matter based upon or arising out of this Agreement, the Merger or any other matters contemplated herein (and any federal court within the Southern District of California). Subject to Section 12.5, each Party agrees not to commence any legal proceedings related hereto except in such court. By execution and delivery of this Agreement, subject to Section 12.5, each Party hereto irrevocably and unconditionally submits to the exclusive jurisdiction of such courts and to the appellate courts therefrom solely for the purposes of disputes arising under this Agreement and not as a general submission to such jurisdiction or with respect to any other dispute, matter or claim whatsoever. The Parties irrevocably consent to the service of process out of any of the aforementioned courts in any such action or proceeding by the delivery of copies thereof by overnight courier to the address for such Party to which notices are deliverable hereunder. Any such service of process shall be effective upon delivery. Nothing herein shall affect the right to serve process in any other manner permitted by applicable Law. The Parties hereto hereby waive any right to stay or dismiss any action or proceeding under or in connection with this Agreement brought before the foregoing courts on the basis of (i) any claim that it is not personally subject to the jurisdiction of the above-named courts for any reason, or that it or any of its property is immune from the above-described legal process, (ii) that such action or proceeding is brought in an inconvenient forum, that venue for the action or proceeding is improper or that this Agreement may not be enforced in or by such courts, or (iii) any other defense that would hinder or delay the levy, execution or collection of any amount to which any party hereto is entitled pursuant to any final judgment of any court having jurisdiction.

**Section 12.5 Arbitration.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any
 dispute, claim or controversy arising out of or relating to this Agreement, the Merger and
 any transactions contemplated hereby or the breach, termination, enforcement, interpretation
 or validity thereof, including the determination of the scope or applicability of this agreement
 to arbitrate, shall be determined by binding arbitration (the "**Arbitration** ")
 in San Diego County, California before one arbitrator. Any Arbitration will be held under
 the auspices of the San Diego County office of the Judicial Arbitration & Mediation Services
 ()"**JAMS** "), or any successor. The Arbitration shall be in accordance with
 its Comprehensive Rules & Procedures (or, to the extent available, the Streamlined Ruled
 & Procedures, and in no event any other rules); *provided, however*, that notwithstanding
 any provision to the contrary in the JAMS Rules, a court will resolve any dispute over the
 formation, enforceability, revocability, or validity of this Agreement or any portion thereof.
 The arbitrator (the "**Arbitrator**") shall be selected pursuant to JAMS rules
 or by mutual agreement of the Parties.

(b) Should
 any Party refuse or neglect to appear for, or participate in, the arbitration hearing, the
 Arbitrator shall have the authority to decide the dispute based upon whatever evidence is
 presented.

(c) Within
 thirty (30) days of the close of the Arbitration hearing, any Party will have the right to
 prepare, serve on the other party, and file with the Arbitrator, a brief. The Arbitrator
 shall render an award and written opinion, normally no later than thirty (30) calendar days
 from the date the Arbitration hearing concludes or the post-hearing briefs are received,
 whichever is later. The opinion shall include the factual basis for the award. Except as
 may be permitted or required by law neither a Party nor an Arbitrator may disclose the existence,
 content, or results of any arbitration hereunder without the prior written consent of all
 Parties. Any decision of the Arbitrator hereunder shall be deemed final, binding and non-appealable.

**Section 12.6 Disclosure Schedule**

Nothing in the Company Disclosure Letter or Purchaser Disclosure Letter, as applicable, is intended to broaden the scope of any representation or warranty contained in this Agreement or to create any covenant unless clearly specified to the contrary herein or therein. Inclusion of any item in the Company Disclosure Letter or Purchaser Disclosure Letter, as applicable, (a) does not represent a determination that such item is material nor shall it be deemed to establish a standard of materiality, (b) does not represent a determination that such item did not arise in the Ordinary Course, and (c) shall not constitute, or be deemed to be, an admission to any third party concerning such item. The Company Disclosure Letter and Purchaser Disclosure Letter, as applicable, include descriptions of instruments or brief summaries of certain aspects of the Company and the Purchaser and their respective business and operations. The descriptions and brief summaries are not necessarily complete and are provided therein to identify documents or other materials previously delivered or made available.

**Section 12.7 Successors and Assigns.**

This Agreement shall accrue to the benefit of and be binding upon each of the Parties hereto and their respective heirs, executors, administrators and assigns, provided that this Agreement shall not be assigned by any one of the Parties without the prior written consent of the other Parties.

**Section 12.8 Interpretation.**

The division of this Agreement into Articles, sections and subsections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation hereof. Schedules and other documents attached or referred to in this Agreement are an integral part of this Agreement.

**Section 12.9 Expenses.**

Each of the Parties hereto shall be responsible for its own costs and charges incurred with respect to the transactions contemplated herein including, without limitation, all costs and charges incurred prior to the date hereof and all legal and accounting fees and disbursements relating to preparing this Agreement or any Ancillary Agreement or otherwise relating to the transactions contemplated herein.

**Section 12.10 Specific Enforcement**

The Parties agree that immediate, extensive and irreparable damage would occur for which monetary damages would not be an adequate remedy in the event that any of the provisions of this Agreement are not performed in accordance with their specific terms or are otherwise breached. Accordingly, the Parties agree that, if for any reason Purchaser or the Company or any other Person shall have failed to perform its obligations under this Agreement or otherwise breached this Agreement, then the Party seeking to enforce this Agreement against such nonperforming Party under this Agreement shall be entitled to specific performance and the issuance of immediate injunctive and other equitable relief without the necessity of proving the inadequacy of money damages as a remedy, and the Parties further agree to waive any requirement for the securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief, this being in addition to and not in limitation of any other remedy to which they are entitled at Law or in equity.

**Section 12.11 Further Assurances.**

Each of the Parties hereto will, without further consideration, do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered such other documents, instruments of transfer, conveyance, assignment and assurances and secure all necessary consents and authorizations as may be reasonably requested by another Party and take such further action as the other may reasonably require to give effect to any matter provided for herein.

**Section 12.12 Entire Agreement.**

This Agreement and the schedules referred to herein constitute the entire agreement among the Parties hereto and supersede all prior communications, agreements, representations, warranties, statements, promises, information, arrangements and understandings, whether oral or written, express or implied, with respect to the subject matter hereof. None of the Parties hereto shall be bound or charged with any oral or written agreements, representations, warranties, statements, promises, information, arrangements or understandings not specifically set forth in this Agreement or in the schedules, documents and instruments to be delivered on the Closing Date pursuant to this Agreement. The Parties hereto further acknowledge and agree that, in entering into this Agreement and in delivering the schedules, documents and instruments to be delivered on the Closing Date, they have not in any way relied, and will not in any way rely, upon any oral or written agreements, representations, warranties, statements, promises, information, arrangements or understandings, express or implied, not specifically set forth in this Agreement or in such schedules, documents or instruments.

**Section 12.13 Notices.**

Any notice required or permitted to be given hereunder shall be in writing and shall be effectively given if (i) delivered personally, (ii) sent prepaid courier service or (iii) sent by registered or certified mail (return receipt requested) addressed as follows:

in the case of notice to Purchaser or Subco:

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attn: Brandon Kou

Email: brandon@icaninc.com

with a copy to (which shall not constitute notice):

McMillan LLP

1500-1055 West Georgia Street

Vancouver, British Columbia

V6E 4N7

Attn: Desmond Balakrishnan

Email: desmond.balakrishnan@mcmillan.ca

in the case of notice to the Company:

LEEF Holdings, Inc.

5580 La Jolla Boulevard #395

La Jolla, CA 92037

Attn: Micah Anderson

Email: micah@leefca.com

with a copy to (which shall not constitute notice):

Jackson Tidus, A Law Corporation

2030 Main Street, 12<sup>th</sup> Floor

Irvine, California 92614

Attn: Jason R. Wisniewski

Email: jwisniewski@jacksontidus.law

and

Cassels, Brock & Blackwell LLP

2100 Scotia Plaza, 40 King Street West

Toronto, Ontario

M5H 3C2

Attn: Jonathan Sherman

Email: jsherman@cassels.com

Any notice, designation, communication, request, demand or other document given or sent or delivered as aforesaid shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if
 delivered as aforesaid, be deemed to have been given, sent, delivered and received on the
 date of delivery; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if
 sent by mail as aforesaid, be deemed to have been given, sent, delivered and received on
 the fourth Business Day following the date of mailing, unless at any time between the date
 of mailing and the fourth Business Day thereafter there is a discontinuance or interruption
 of regular postal service, whether due to strike or lockout or work slowdown, affecting postal
 service at the point of dispatch or delivery or any intermediate point, in which case the
 same shall be deemed to have been given, sent, delivered and received in the ordinary course
 of the mail, allowing for such discontinuance or interruption of regular postal service.

**Section 12.14 Waiver.**

Any Party hereto which is entitled to the benefits of this Agreement may, and has the right to, waive any term or condition hereof at any time on or prior to the Closing Date, provided however that such waiver shall be evidenced by written instrument duly executed on behalf of such Party.

**Section 12.15 Amendments.**

No modification or amendment to this Agreement may be made unless agreed to by the Parties hereto in writing.

**Section 12.16 Remedies Cumulative.**

The rights and remedies of the Parties under this Agreement are cumulative and in addition to and not in substitution for any rights or remedies provided by law. Any single or partial exercise by any Party hereto of any right or remedy for default or breach of any term, covenant or condition of this Agreement does not waive, alter, affect or prejudice any other right or remedy to which such Party may be lawfully entitled for the same default or breach.

**Section 12.17 Currency.**

Unless otherwise indicated, all dollar amounts referred to in this Agreement are in the lawful money of the United States of America.

**Section 12.18 Number and Gender.**

In this Agreement, unless there is something in the subject matter or context inconsistent therewith:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) words
 in the singular number include the plural and such words shall be construed as if the plural
 had been used;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) words
 in the plural include the singular and such words shall be construed as if the singular had
 been used; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words
 importing the use of any gender shall include all genders where the context or the Party
 referred to so requires, and the rest of the sentence shall be construed as if the necessary
 grammatical and terminological changes had been made.

**Section 12.19 Time of Essence.**

Time shall be of the essence hereof.

**[Remainder of page intentionally blank]**

**<u>EXHIBIT B</u>**

**ACTION BY WRITTEN CONSENT OF THE STOCKHOLDERS**

**(Approval of Merger and Related Transactions)**

**(attached hereto)**

**ACTION BY**

**WRITTEN CONSENT**

**OF THE STOCKHOLDERS OF**

**LEEF HOLDINGS, INC., a Nevada corporation**

The undersigned, being holders of not less than a majority of the outstanding shares of the Common Stock (the "***Common Stock***") of Leef Holdings, Inc., a Nevada corporation (the "***Company***"), and acting pursuant to Sections 78.320 and 78.565 of the Nevada Revised Statutes (the "***NRS***") and the Company's Bylaws, do hereby adopt the following resolutions by written consent, which shall have the same force and effect as if adopted at a special meeting of the stockholders of the Company (the "***Stockholders***") duly called and held for the purpose of acting upon proposals to adopt such resolutions in accordance with the NRS. A copy of this consent shall be filed with the minutes of the Stockholders:

**<u>APPROVAL OF MERGER AGREEMENT AND RELATED ACTIONS</u>**

**WHEREAS**, the Company's Board of Directors (the "***Board***") has unanimously approved a Merger Agreement to be entered into by and among the Company, Icanic Brands Company Inc., a company incorporated pursuant to the Business Corporations Act (British Columbia) ("***Parent***"), Icanic Merger Sub, Inc., a Nevada corporation and wholly owned subsidiary of Parent ("***Merger Sub***"), and the Stockholders Representative (as defined therein, the "***Representative***"), including all exhibits and schedules attached thereto, in substantially the form attached as <u>Exhibit A</u> to that certain Confidential Information Statement which accompanied this written consent (the "***Merger Agreement***"), pursuant to which the Company will be merged with and into Merger Sub, with the Company surviving as a wholly owned subsidiary of Parent (the "***Merger***");

**WHEREAS**, the Board declared the Merger Agreement and the Merger fair to, advisable and in the best interests of, the Company and its Stockholders, and has adopted and approved the Merger Agreement, the Merger and the transactions contemplated thereby upon the terms and subject to the conditions set forth in the Merger Agreement, and has resolved to submit to, and unanimously recommend the adoption and approval of the Merger Agreement, the Merger and the transactions contemplated thereby, as more specifically described in that certain Confidential Information Statement which accompanied this written consent (the "***Information Statement***"), by, the Stockholders of the Company; and

**WHEREAS**, each of the undersigned Stockholders (i) acknowledges receipt of a copy of the Information Statement and the Merger Agreement and acknowledges that he, she or it has had the opportunity to ask the Company questions and to receive answers regarding the Merger Agreement, the Merger and the other transactions contemplated by the Merger Agreement, (ii) has been urged to consult with his, her or its own legal, tax and/or financial advisor(s) regarding the consequences to him, her or it of the Merger and the Merger Agreement, and the execution of this Action by Written Consent of the Stockholders, (iii) believes he, she or it has received all information necessary to provide an informed consent of the Merger Agreement and the transactions contemplated thereby, (iv) has reviewed and understands the Merger Agreement and this Action by Written Consent of the Stockholders, and deems approving the Merger and the Merger Agreement to be in the best interests of such Stockholder and the Company, (v) is competent to execute this Action by Written Consent of the Stockholders free from coercion, duress or undue influence and (vi) has confirmed to the Company and Parent that he, she or it is an "accredited investor" as defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended.

**NOW, THEREFORE, BE IT RESOLVED**, that the Merger Agreement and the exhibits and schedules attached thereto, in substantially the forms attached as <u>Exhibit A</u> to the Information Statement, and the transactions and agreements contemplated thereby, including the apportionment of the Purchase Price (as defined in the Merger Agreement) pursuant to Article 2 of the Merger Agreement and the indemnification obligations of the Stockholders pursuant to Article 11 of the Merger Agreement, are hereby adopted, ratified and approved, and the undersigned Stockholders irrevocably consent to be bound by the indemnification and other obligations of the Company Stockholders (as defined in the Merger Agreement) set forth in the Merger Agreement, including without limitation, those set forth in Article 11 thereof; and

**RESOLVED FURTHER,** that the Merger be, and it hereby is, authorized, approved and consented to in all respects.

**<u>WAIVER OF NOTICE</u>**

**RESOLVED**, that the undersigned Stockholders hereby waive any and all notice or consent requirements, as well as any right of first refusal, tag-along rights and other similar rights, that may be applicable to, or triggered by, the Merger, the Merger Agreement and any of the transactions contemplated therein that are contained in the Company's current articles of incorporation, the bylaws, in any contract between the Company and/or its subsidiaries, on the one hand, and the undersigned, on the other hand, or under applicable law.

**<u>APPOINTMENT OF REPRESENTATIVE</u>**

**WHEREAS**, under the terms of the Merger Agreement Micah Anderson shall act on behalf of the Company Stockholders as the Representative.

**NOW, THEREFORE, BE IT RESOLVED**, that the appointment of Micah Anderson as the Representative to act on behalf of the Company Stockholders in accordance with the terms, provisions and powers set forth in the Merger Agreement be, and hereby is, acknowledged, ratified and approved;

**RESOLVED FURTHER**, that the Representative is authorized to execute and deliver all documents and to take all actions which he deems necessary or advisable to effect his duties pursuant to the Merger Agreement and any other transaction documents;

**RESOLVED FURTHER**, that the obligation of the Company Stockholders to indemnify the Representative and hold the Representative harmless against any loss, liability or expense incurred in good faith on the part of the Representative and arising out of or in connection with the acceptance or administration of its duties as Representative, on the terms and subject to the conditions set forth in the Merger Agreement be, and hereby is, authorized, confirmed and approved in all respects; and

**RESOLVED FURTHER**, that all actions, notices, communications and determinations given or made by the Representative in connection with the Merger Agreement shall be deemed to have been authorized by, and shall be binding upon, any and all Company Stockholders, and no Company Stockholder shall have the right to object, dissent, protest or otherwise contest the same.

*[Signature Page Follows]*

 

**IN WITNESS WHEREOF**, the undersigned, voting all of the shares of the Company's capital stock held of record by him, her or it in favor of the resolutions set forth above has executed this Written Consent of the Stockholders as of the date set forth below. This written consent may be executed in two or more counterparts and delivered by facsimile or other electronic transmission (including DocuSign), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

**STOCKHOLDER:**

---

| |
|:---|
| Stockholder Name of Record (Print)\* |
| Signature of Stockholder |
| By (name of signatory, if stockholder is an entity) |
| Title (title of signatory, if stockholder is an entity) |
| Date of Signature |
| Shares of Common Stock |
| \* Note: Name must be <u>exactly</u> as set forth in the stock records of the Company (i.e., as set forth on the face of stockholder's stock certificate). If stockholder holds shares in more than one name of record, stockholder must execute a separate signature page for <u>each</u> name of record under which he, she or it holds shares. |

---

***(Signature Page Action by Written Consent of the Stockholders of LEEF Holdings, Inc.)***

 ****

**<u>EXHIBIT C</u>**

**ACCREDITED INVESTOR CERTIFICATION**

**(attached hereto)**

**U.S. Representation Letter**

---

| | |
|:---|:---|
| **To:** | Icanic Brands Company Inc. ("Icanic") |
| **Re:** | **Merger Agreement dated January 21, 2022 (the "Merger Agreement") between Icanic and Leef Holdings, Inc. ("Leef")** |

---

Upon the completion of the acquisition by Icanic of Leef by way of a merger (the "**Merger**") contemplated by the Merger Agreement, Leef shall become a wholly-owned subsidiary of Icanic. Pursuant to the Merger, the undersigned holder of shares of common stock of Leef ("**Leef Shares**") will receive common shares of Icanic in exchange for the shareholder's Leef Shares (the "**Icanic Shares**").

This Representation Letter is to be executed and delivered by each holder of Leef Shares or securities convertible into Leef Shares (collectively, "**Leef Securities**") who is, or is acting for the account or benefit of, a U.S. Person or a person within the United States (each, an "**Leef U.S. Securityholder**").

The undersigned holder of Leef Securities covenants, represents and warrants to Icanic that:

(a) It
 has full right, power and authority to deliver its Leef Securities and this Representation
 Letter.

(b) It
 has such knowledge, skill and experience in financial, investment and business matters as
 to be capable of evaluating the merits and risks of an investment in the Icanic Shares or
 securities convertible into the common shares of Icanic (the "**Consideration Securities** ")
 to be issued to it pursuant to the Merger, and it is able to bear the economic risk of loss
 of its entire investment. To the extent necessary, the Leef U.S. Securityholder has retained,
 at his or her own expense, and relied upon, appropriate professional advice regarding the
 investment, tax and legal merits and consequences of the Merger Agreement and owning the
 Consideration Securities.

(c) Icanic
 has provided to it the opportunity to ask questions and receive answers concerning the terms
 and conditions of the Merger Agreement and it has had access to such information concerning
 Icanic as it has considered necessary or appropriate in connection with its investment decision
 to acquire the Consideration Securities, including disclosure document(s) furnished to the
 Leef U.S. Securityholder in connection with the solicitation of written consents of the shareholders
 of Leef to approve the Merger, and access to Icanic's public filings available on the
 Internet at <u>www.sedar.com</u>, and that any answers to questions and any request for information
 have been complied with to the Leef U.S. Securityholder's satisfaction.

(d) It
 is acquiring the Consideration Securities for its own account, for investment purposes only
 and not with a view to any resale or distribution and, in particular, it has no intention
 to distribute either directly or indirectly the Consideration Securities in the United States
 or to, or for the account or benefit of, a U.S. Person or a person in the United States;
 provided, however, that this paragraph shall not restrict the Leef U.S. Securityholder from
 selling or otherwise disposing of the Consideration Securities pursuant to registration thereof
 pursuant to the *United States Securities Act of 1933*, as amended, and the rules and
 regulations promulgated thereunder (the "**U.S. Securities Act**") and any
 applicable state securities laws or under an exemption from such registration requirements.

(e) The
 address of the Leef U.S. Securityholder set out in the signature block below is the true
 and correct principal address of the Leef U.S. Securityholder and can be relied on by Icanic
 for the purposes of state blue sky laws, and the Leef U.S. Securityholder is not an entity
 that has been formed for the specific purpose of purchasing or acquiring the Securities.

(f) It
 understands (i) the Consideration Securities have not been and will not be registered under
 the U.S. Securities Act or the securities laws of any state of the United States; and (ii)
 the offer and sale contemplated by the Merger Agreement is being made in reliance on an exemption
 from such registration requirements in reliance on Rule 506(b) of Regulation D and/or Section
 4(a)(2) of the U.S. Securities Act.

(g) The
 Leef U.S. Securityholder is an "accredited investor" as defined in Rule 501(a)
 of Regulation D under the U.S. Securities Act by virtue of meeting one of the criteria set
 forth in **Appendix A** hereto (**please initial on the appropriate lines on Appendix A**), which Appendix A forms an integral part hereof.

(h) The
 Leef U.S. Securityholder has not purchased the Consideration Securities as a result of any
 form of "general solicitation" or "general advertising" (as those
 terms are used in Regulation D under the U.S. Securities Act), including advertisements,
 articles, press releases, notices or other communications published in any newspaper, magazine
 or similar media or on the Internet, or broadcast over radio or television, or the Internet
 or other form of telecommunications, including electronic display, or any seminar or meeting
 whose attendees have been invited by general solicitation or general advertising.

(i) It
 understands and agrees that the Consideration Securities may not be acquired in the United
 States or by a U.S. Person or on behalf of, or for the account or benefit of, a U.S. Person
 or a person in the United States unless registered under the U.S. Securities Act and any
 applicable state securities laws or unless an exemption from such registration requirements
 is available.

(j) It
 acknowledges that it is not acquiring the Consideration Securities as a result of, and will
 not itself engage in, any "directed selling efforts" (as defined in Regulation
 S under the U.S. Securities Act) in the United States in respect of the Consideration Securities
 which would include any activities undertaken for the purpose of, or that could reasonably
 be expected to have the effect of, conditioning the market in the United States for the resale
 of the Consideration Securities.

(k) If
 it is entitled to receive share purchase warrants or options convertible into Icanic Shares
 under the Merger Agreement, it acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) the
 securities of Icanic issuable upon exercise of such warrants or options convertible into
 Icanic Shares (the "**Icanic Underlying Securities**" and together with the
 Consideration Securities, the "**Securities**") have not been and will not
 be registered under the U.S. Securities Act or any state securities laws; and

ii) such warrants or options convertible into Icanic Shares may not be exercised in the United States, or for the account or benefit of a U.S. Person or a person in the United States, absent an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

(l) It
 acknowledges that the Securities will be "restricted securities", as such term
 is defined in Rule 144(a)(3) under the U.S. Securities Act, and may not be offered, sold,
 pledged, or otherwise transferred, directly or indirectly, without prior registration under
 the U.S. Securities Act and applicable state securities laws, and it agrees that if it decides
 to offer, sell, pledge or otherwise transfer, directly or indirectly, any of the Securities,
 it will not offer, sell or otherwise transfer, directly or indirectly, the Securities except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 Icanic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) outside
 the United States in an "offshore transaction" meeting the requirements of Rule
 904 of Regulation S under the U.S. Securities Act, if available, and in compliance with applicable
 local laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 compliance with the exemption from the registration requirements under the U.S. Securities
 Act provided by Rule 144 thereunder, if available, and in accordance with any applicable
 state securities or "blue sky" laws; or

(iii) in
 a transaction that does not require registration under the U.S. Securities Act or any applicable
 state securities laws governing the offer and sale of securities,

and, in the case of each of (ii) and (iii) above, it has prior to such sale furnished to Icanic an opinion of counsel in form and substance reasonably satisfactory to Icanic stating that such transaction is exempt from registration under applicable securities laws and that the legend referred to in paragraph (m) below may be removed.

(m) The
 certificates representing the Securities, as well as all certificates issued in exchange
 for or in substitution of the foregoing, until such time as the same is no longer required
 under the applicable requirements of the U.S. Securities Act or applicable state securities
 laws and regulations, will bear, on the face of such certificate, the following legend:

"THE SECURITIES REPRESENTED HEREBY [*for Icanic options and warrants add:* AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. [*For Icanic Shares add:* DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.]"

provided, that if at the time of original issuance of the Securities, Icanic is a "foreign issuer" (as such term is defined in Rule 902(e) of Regulation S under the U.S. Securities Act), and are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation S and in compliance with Canadian local laws and regulations, the legend set forth above may be removed by providing to the registrar and transfer agent of Icanic:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 executed declaration and undertaking in substantially the form set forth as Appendix B attached
 hereto (or in such other forms as Icanic may prescribe from time to time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an
 executed broker affirmation, in substantially the form included in Appendix B attached hereto
 (or in such other forms as Icanic may prescribe from time to time); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 requested by Icanic or the transfer agent, an opinion of counsel of recognized standing in
 form and substance reasonably satisfactory to Icanic and the transfer agent to the effect
 that such sale is being made in compliance with Rule 904 of Regulation S; and

provided, further, that, if any Securities are being sold otherwise than in accordance with Regulation S and other than to Icanic, the legend may be removed by delivery to the registrar and transfer agent and Icanic of an opinion of counsel of recognized standing, in form and substance reasonably satisfactory to Icanic, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

(n) It
 understands and agrees that there may be material tax consequences to the Leef U.S. Securityholder
 of an acquisition, holding or disposition of any of the securities of Icanic. Icanic gives
 no opinion and makes no representation with respect to the tax consequences to the Leef U.S.
 Securityholder under United States federal, state, local or other tax laws of the undersigned's
 acquisition, holding or disposition of such securities.

(o) It
 consents to Icanic making a notation on its records or giving instructions to any transfer
 agent of Icanic in order to implement the restrictions on transfer set forth and described
 in this Representation Letter and the Merger Agreement.

(p) It
 understands that (i) Icanic may be deemed to be an issuer that is, or that has been at any
 time previously, an issuer with no or nominal operations and no or nominal assets other than
 cash and cash equivalents (a "**Shell Company** "), (ii) if Icanic is deemed
 to be, or to have been at any time previously, a Shell Company, Rule 144 under the U.S. Securities
 Act may not be available for resales of the Securities unless the requirements of Rule 144(i)
 under the U.S. Securities Act are met, and (iii) Icanic will not be obligated to make Rule
 144 under the U.S. Securities Act available for resales of the Securities.

(q) It
 understands and agrees that the financial statements of Icanic have been prepared in accordance
 with International Financial Reporting Standards and therefore may be materially different
 from financial statements prepared under U.S. generally accepted accounting principles and
 therefore may not be comparable to financial statements of United States companies.

(r) It
 understands and acknowledges that Icanic is incorporated outside the United States, consequently,
 it may be difficult to provide service of process on Icanic and it may be difficult to enforce
 any judgment against Icanic.

(s) It
 understands that Icanic will not have any obligation to register the Securities under the
 U.S. Securities Act or any applicable state securities or "blue sky" laws or
 to take action so as to permit resales of such Securities. Accordingly, the Leef U.S. Securityholder
 understands that absent registration, it may be required to hold the Securities indefinitely.
 As a consequence, the Leef U.S. Securityholder understands it must bear the economic risks
 of the investment in such Securities for an indefinite period of time.

The foregoing representations contained in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the Closing. If any such representations shall not be true and accurate prior to the Closing, the undersigned shall give immediate written notice of such fact to Icanic prior to the Closing.

Dated ________________________2022.

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| |
|:---|
| **X** |
| Signature of individual (if Leef U.S. Securityholder **is** an individual) |
| **X** |
| Signature of Authorized signatory (if Leef U.S. Securityholder is **not** an individual) |
| Name of Leef U.S. Securityholder (**please print**) |
| Address of Leef U.S. Securityholder (**please print**) |
| Name of authorized signatory (**please print**) |
| Official capacity of authorized signatory (**please print**) |

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**Appendix "A" to**

**U.S. Representation Letter for Leef U.S. Securityholders**

*To be completed by Leef U.S. Securityholders who qualify as Accredited Investors*

 

In addition to the covenants, representations and warranties contained in the Merger Agreement and the Representation Letter to which this Appendix is attached, the undersigned Leef U.S. Securityholder covenants, represents and warrants to Icanic that the Leef U.S. Securityholder is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act by virtue of meeting one of the following criteria (please initial on the appropriate lines):

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| | |
|:---|:---|
| 1.<br> Initials________ | Any bank as defined in Section 3(a)(2) of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act of 1934; any investment adviser registered pursuant to section 203 of the *Investment Advisers Act of 1940* or registered pursuant to the laws of a state; any investment adviser relying on the exemption from registering with the United States Securities and Exchange Commission (the "**Commission**") under section 203(l) or (m) of the *Investment Advisers Act of 1940*; any insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; any investment company registered under the U.S. Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958; any rural business investment company as defined in section 384A of the *Consolidated Farm and Rural Development Act*; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; any employee benefit plan within the meaning of the U.S. *Employee Retirement Income Security Act of 1974* if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000, or, if a self-directed plan, with investment decisions made solely by persons that are "accredited investors" (as such term is defined in Rule 501 of Regulation D under the U.S. Securities Act); |
| 2.<br> Initials________ | Any private business development company as defined in Section 202(a)(22) of the U.S. *Investment Advisers Act of 1940*; |

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| | |
|:---|:---|
| 3.<br> Initials________ | Any organization described in Section 501(c)(3) of the U.S. *Internal Revenue Code*, corporation, Massachusetts or similar business trust, partnership, or limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of US$5,000,000; |
| 4.<br> Initials________ | Any trust with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person (being defined as a person who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment); |
| 5.<br> Initials________ | Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent (being a cohabitant occupying a relationship generally equivalent to that of a spouse), excluding the value of that person's primary residence, at the time of purchase, exceeds US$1,000,000 (Note: For purposes of calculating net worth, |
|  | (i) the person's primary residence shall not be included as an asset; |
|  | (ii) indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of this Representation Letter, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of this Representation Letter exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); |
|  | (iii) indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability; and |
|  | (iv) for the purposes of calculating joint net worth of the person and that person's spouse or spousal equivalent, (A) joint net worth can be the aggregate net worth of the investor and spouse or spousal equivalent, and (B) assets need not be held jointly to be included in the calculation; and reliance by the person and that person's spouse or spousal equivalent on the joint net worth standard does not require that the securities be purchased jointly); |
| 6.<br> Initials________ | Any natural person who had an individual income in excess of US$200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of US$300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; |

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| | | |
|:---|:---|:---|
| 7.<br> Initials________ | Any director or executive officer of Icanic; or | Any director or executive officer of Icanic; or |
| 8.<br> Initials________ | Any entity in which all of the equity owners meet the requirements of at least one of the above categories – *if this category is selected, you must identify each equity owner and indicate the category of accredited investor (by reference to the applicable number in this Representation Letter):* | Any entity in which all of the equity owners meet the requirements of at least one of the above categories – *if this category is selected, you must identify each equity owner and indicate the category of accredited investor (by reference to the applicable number in this Representation Letter):* |
|  | **Name of Equity Owner** | **Category of Accredited Investor** |
|  | <br> Note: It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this category. If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this category will be available; | <br> Note: It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this category. If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this category will be available; |
| 9.<br> Initials________ | Any entity, of a type not listed in Categories 1- 4 or 8, not formed for the specific purpose of acquiring the securities offered, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the *Investment Company Act of 1940*); | Any entity, of a type not listed in Categories 1- 4 or 8, not formed for the specific purpose of acquiring the securities offered, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the *Investment Company Act of 1940*); |
| 10.<br> Initials________ | Any natural person holding in good standing one or more of the following professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status: The General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), and the Licensed Investment Adviser Representative (Series 65); | Any natural person holding in good standing one or more of the following professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status: The General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), and the Licensed Investment Adviser Representative (Series 65); |

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|:---|:---|
| 11.<br> Initials________ | Any "family office," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940: (i) with assets under management in excess of US$5,000,000, (ii) that is not formed for the specific purpose of acquiring the securities offered, and (iii) whose prospective investment is directed by a person (a "Knowledgeable Family Office Administrator") who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or |
| 12.<br> Initials________ | Any "family client," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940, of a family office meeting the requirements set forth in Category 11 above and whose prospective investment in Icanic is directed by such family office with the involvement of the Knowledgeable Family Office Administrator. |

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Dated__________________2022.

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| |
|:---|
| **X** |
| Signature of individual (if Leef U.S. Securityholder **is** an individual) |
| **X** |
| Signature of authorized signatory (if Leef U.S. Securityholder is **not** an individual) |
| Name of Leef U.S. Securityholder (**please print**) |
| Address of Leef U.S. Securityholder (**please print**) |
| Name of authorized signatory (**please print**) |
| Official capacity of authorized signatory (**please print**) |

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**Appendix "B"**

Form of Declaration and Undertaking for Removal of Legend – Rule 904 under the U.S. Securities Act of 1933

To: Icanic Brands Company Inc. (the "Company")

And To: The transfer agent for the Company's Common Shares

The undersigned (A) acknowledges that the sale of<u> </u> common shares in the capital of the Company, represented by Share Certificate No.(s)<u> </u> or held through the Direct Registration System (DRS) in DRS Holder Account No. <u>,</u> to which this declaration relates, is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and (B) certifies that (1) the undersigned is not an "affiliate" (as defined in Rule 405 under the U.S. Securities Act) of the Company (except solely by virtue of being an officer or director of the Company) or a "distributor", as defined in Regulation S, or an affiliate of a "distributor"; (2) the offer of such securities was not made to a person in the United States and either (a) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (b) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market within the meaning of Rule 902(b) of Regulation S under the U.S. Securities Act, and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States; (3) neither the seller nor any affiliate of the seller nor any person acting on their behalf has engaged in any directed selling efforts in connection with the offer and sale of such securities; (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act); (5) the seller does not intend to replace the securities sold in reliance on Rule 904 of Regulation S under the U.S. Securities Act with fungible unrestricted securities; and (6) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or a scheme to evade the registration provisions of the U.S. Securities Act. Unless otherwise specified, terms used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

Dated<u> </u> 20<u> </u>.

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| |
|:---|
| X |
| Signature of individual (if Seller is an individual) |
| X |
| Signature of authorized signatory (if Seller is not an individual) |
| Name of Seller (please print) |
| Name of authorized signatory (please print) |
| Official capacity of authorized signatory (please print) |

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**Affirmation by Seller's Broker-Dealer**

**(Required for sales pursuant to Section (B)(2)(b) above)**

We have read the representations of our customer<u> </u> (the "Seller") contained in the foregoing Declaration for Removal of Legend, dated<u> </u>, 20 , with regard to the sale, for such Seller's account, of<u> </u> common shares (the "Securities") of the Company represented by certificate number(s)<u> </u>, or held through the Direct Registration System (DRS) in DRS Holder Account No.<u> </u>. We have executed sales of the Securities pursuant to Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), on behalf of the Seller. In that connection, we hereby represent to you as follows:

(1) no offer to sell Securities was made to a person in the United States;

(2) the sale of the Securities was executed in, on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market (as defined in Rule 902(b) of Regulation S under the U.S. Securities Act), and, to the best of our knowledge, the sale was not pre-arranged with a buyer in the United States;

(3) no "directed selling efforts" were made in the United States by the undersigned, any affiliate of the undersigned, or any person acting on behalf of the undersigned; and

(4) we have done no more than execute the order or orders to sell the Securities as agent for the Seller and will receive no more than the usual and customary broker's commission that would be received by a person executing such transaction as agent.

For purposes of these representations: "affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the undersigned; "directed selling efforts" means any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities (including, but not be limited to, the solicitation of offers to purchase the Securities from persons in the United States); and "United States" means the United States of America, its territories or possessions, any State of the United States, and the District of Columbia.

Legal counsel to the Company shall be entitled to rely upon the representations, warranties and covenants contained herein to the same extent as if this affirmation had been addressed to them.

Dated this<u> </u> day of<u> </u>, 20<u> </u>.

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| |
|:---|
| Signature of Signatory: |
| Name and Title of Authorized Signatory: |
| Name of Brokerage Company: |

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**<u>EXHIBIT D</u>**

**NEVADA REVISED STATUTES**

**CHAPTER 92A.300 - 500**

**RIGHTS OF DISSENTING OWNERS**

**N.R.S. 92A.300 Definitions**. As used in NRS 92A.300 to 92A.500, inclusive, unless the context otherwise requires, the words and terms defined in NRS 92A.305 to 92A.335, inclusive, have the meanings ascribed to them in those sections.

**N.R.S. 92A.305 "Beneficial stockholder" defined**. "Beneficial stockholder" means a person who is a beneficial owner of shares held in a voting trust or by a nominee as the stockholder of record.

**N.R.S. 92A.310 "Corporate action" defined**. "Corporate action" means the action of a domestic corporation.

**N.R.S. 92A.315 "Dissenter" defined**. "Dissenter" means a stockholder who is entitled to dissent from a domestic corporation's action under NRS 92A.380 and who exercises that right when and in the manner required by NRS 92A.400 to 92A.480, inclusive.

**N.R.S. 92A.320 "Fair value" defined**. "Fair value," with respect to a dissenter's shares, means the value of the shares determined:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Immediately
 before the effectuation of the corporate action to which the dissenter objects, excluding
 any appreciation or depreciation in anticipation of the corporate action unless exclusion
 would be inequitable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Using
 customary and current valuation concepts and techniques generally employed for similar businesses
 in the context of the transaction requiring appraisal; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Without
 discounting for lack of marketability or minority status.

**N.R.S. 92A.325 "Stockholder" defined**. "Stockholder" means a stockholder of record or a beneficial stockholder of a domestic corporation.

**N.R.S. 92A.330 "Stockholder of record" defined**. "Stockholder of record" means the person in whose name shares are registered in the records of a domestic corporation or the beneficial owner of shares to the extent of the rights granted by a nominee's certificate on file with the domestic corporation.

**N.R.S. 92A.335 "Subject corporation" defined**. "Subject corporation" means the domestic corporation which is the issuer of the shares held by a dissenter before the corporate action creating the dissenter's rights becomes effective or the surviving or acquiring entity of that issuer after the corporate action becomes effective.

**N.R.S. 92A.340 Computation of interest**. Interest payable pursuant to NRS 92A.300 to 92A.500, inclusive, must be computed from the effective date of the action until the date of payment, at the rate of interest most recently established pursuant to NRS 99.040.

**N.R.S. 92A.350 Rights of dissenting partner of domestic limited partnership**. A partnership agreement of a domestic limited partnership or, unless otherwise provided in the partnership agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the partnership interest of a dissenting general or limited partner of a domestic limited partnership are available for any class or group of partnership interests in connection with any merger or exchange in which the domestic limited partnership is a constituent entity.

**N.R.S. 92A.360 Rights of dissenting member of domestic limited-liability company**. The articles of organization or operating agreement of a domestic limited-liability company or, unless otherwise provided in the articles of organization or operating agreement, an agreement of merger or exchange, may provide that contractual rights with respect to the interest of a dissenting member are available in connection with any merger or exchange in which the domestic limited- liability company is a constituent entity.

**N.R.S. 92A.370 Rights of dissenting member of domestic nonprofit corporation**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Except as otherwise provided in subsection 2, and unless otherwise provided in the articles or bylaws, any member of any constituent domestic nonprofit corporation who voted against the merger may, without prior notice, but within 30 days after the effective date of the merger, resign from membership and is thereby excused from all contractual obligations to the constituent or surviving corporations which did not occur before the member's resignation and is thereby entitled to those rights, if any, which would have existed if there had been no merger and the membership had been terminated or the member had been expelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Unless otherwise provided in its articles of incorporation or bylaws, no member of a domestic nonprofit corporation, including, but not limited to, a cooperative corporation, which supplies services described in chapter 704 of NRS to its members only, and no person who is a member of a domestic nonprofit corporation as a condition of or by reason of the ownership of an interest in real property, may resign and dissent pursuant to subsection 1.

**N.R.S. 92A.380 Right of stockholder to dissent from certain corporate actions and to obtain payment for shares**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Except as otherwise provided in NRS 92A.370 and 92A.390 and subject to the limitation in paragraph (f), any stockholder is entitled to dissent from, and obtain payment of the fair value of the stockholder's shares in the event of any of the following corporate actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Consummation of a plan of merger to which the domestic corporation is a constituent entity:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) If approval by the stockholders is required for the merger by NRS 92A.120 to 92A.160, inclusive, or the articles of incorporation, regardless of whether the stockholder is entitled to vote on the plan of merger;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) If the domestic corporation is a subsidiary and is merged with its Purchaser pursuant to NRS 92A.180; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) If the domestic corporation is a constituent entity in a merger pursuant to NRS 92A.133.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Consummation of a plan of conversion to which the domestic corporation is a constituent entity as the corporation whose subject owner's interests will be converted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Consummation of a plan of exchange to which the domestic corporation is a constituent entity as the corporation whose subject owner's interests will be acquired, if the stockholder's shares are to be acquired in the plan of exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any corporate action taken pursuant to a vote of the stockholders to the extent that the articles of incorporation, bylaws or a resolution of the board of directors provides that voting or nonvoting stockholders are entitled to dissent and obtain payment for their shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Accordance of full voting rights to control shares, as defined in NRS 78.3784, only to the extent provided for pursuant to NRS 78.3793.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any corporate action not described in this subsection pursuant to which the stockholder would be obligated, as a result of the corporate action, to accept money or scrip rather than receive a fraction of a share in exchange for the cancellation of all the stockholder's outstanding shares, except where the stockholder would not be entitled to receive such payment pursuant to NRS 78.205, 78.2055 or 78.207. A dissent pursuant to this paragraph applies only to the fraction of a share, and the stockholder is entitled only to obtain payment of the fair value of the fraction of a share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A stockholder who is entitled to dissent and obtain payment pursuant to NRS 92A.300 to 92A.500, inclusive, must not challenge the corporate action creating the entitlement unless the action is unlawful or constitutes or is the result of actual fraud against the stockholder or the domestic corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Subject to the limitations in this subsection, from and after the effective date of any corporate action described in subsection 1, no stockholder who has exercised the right to dissent pursuant to NRS 92A.300 to 92A.500, inclusive, is entitled to vote his or her shares for any purpose or to receive payment of dividends or any other distributions on shares. This subsection does not apply to dividends or other distributions payable to stockholders on a date before the effective date of any corporate action from which the stockholder has dissented. If a stockholder exercises the right to dissent with respect to a corporate action described in paragraph (f) of subsection 1, the restrictions of this subsection apply only to the shares to be converted into a fraction of a share and the dividends and distributions to those shares.

**N.R.S. 92A.390 Limitations on right of dissent: Stockholders of certain classes or series; action of stockholders not required for plan of merger; shares of stock not issued and outstanding on date of first announcement of proposed action**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. There is no right of dissent pursuant to paragraph (a), (b), (c) or (f) of subsection 1 of NRS 92A.380 in favor of stockholders of any class or series which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A covered security under section 18(b)(1)(A) or (B) of the Securities Act of 1933, 15 U.S.C. § 77r(b)(1)(A) or (B), as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Traded in an organized market and has at least 2,000 stockholders and a market value of at least $20,000,000, exclusive of the value of such shares held by the corporation's subsidiaries, senior executives, directors and beneficial stockholders owning more than 10 percent of such shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Issued by an open end management investment company registered with the Securities and Exchange Commission under the Investment Company Act of 1940, 15 U.S.C. §§ 80a-1 et seq., as amended, and which may be redeemed at the option of the holder at net asset value,

unless the articles of incorporation of the corporation issuing the class or series or the resolution of the board of directors approving the plan of merger, conversion or exchange expressly provide otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The applicability of subsection 1 must be determined as of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The record date fixed to determine the stockholders entitled to receive notice of and to vote at the meeting of stockholders to act upon the corporate action requiring dissenter's rights; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The day before the effective date of such corporate action if there is no meeting of stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Subsection 1 is not applicable and dissenter's rights are available pursuant to NRS 92A.380 for the holders of any class or series of shares who are required by the terms of the corporate action to accept for such shares anything other than:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any security or other proprietary interest of any other entity, including, without limitation, shares, equity interests or contingent value rights, that satisfies the standards set forth in subsection 1 at the time the corporate action becomes effective; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any combination of paragraphs (a) and (b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. There is no right of dissent for any holders of stock of the surviving domestic corporation if the plan of merger does not require action of the stockholders of the surviving domestic corporation under NRS 92A.130.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. There is no right of dissent for any holders of stock of the Purchaser domestic corporation if the plan of merger does not require action of the stockholders of the Purchaser domestic corporation under NRS 92A.180.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. There is no right of dissent with respect to any share of stock that was not issued and outstanding on the date of the first announcement to the news media or to the stockholders of the terms of the proposed action requiring dissenter's rights.

**N.R.S. 92A.400 Limitations on right of dissent: Assertion as to portions only to shares registered to stockholder; assertion by beneficial stockholder**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A stockholder of record may assert dissenter's rights as to fewer than all of the shares registered in his or her name only if the stockholder of record dissents with respect to all shares of the class or series beneficially owned by any one person and notifies the subject corporation in writing of the name and address of each person on whose behalf the stockholder of record asserts dissenter's rights. The rights of a partial dissenter under this subsection are determined as if the shares as to which the partial dissenter dissents and his or her other shares were registered in the names of different stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A beneficial stockholder may assert dissenter's rights as to shares held on his or her behalf only if the beneficial stockholder:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Submits to the subject corporation the written consent of the stockholder of record to the dissent not later than the time the beneficial stockholder asserts dissenter's rights; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Does so with respect to all shares of which he or she is the beneficial stockholder or over which he or she has power to direct the vote.

**N.R.S. 92A.410 Notification of stockholders regarding right of dissent**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If a proposed corporate action creating dissenter's rights is submitted to a vote at a stockholders' meeting, the notice of the meeting must state that stockholders are, are not or may be entitled to assert dissenter's rights under NRS 92A.300 to 92A.500, inclusive. If the domestic corporation concludes that dissenter's rights are or may be available, a copy of NRS 92A.300 to 92A.500, inclusive, must accompany the meeting notice sent to those stockholders of record entitled to exercise dissenter's rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If the corporate action creating dissenter's rights is taken by written consent of the stockholders or without a vote of the stockholders, the domestic corporation shall notify in writing all stockholders of record entitled to assert dissenter's rights that the action was taken and send them the dissenter's notice described in NRS 92A.430.

**N.R.S. 92A.420 Prerequisites to demand for payment for shares**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If a proposed corporate action creating dissenter's rights is submitted to a vote at a stockholders' meeting, a stockholder who wishes to assert dissenter's rights with respect to any class or series of shares:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Must deliver to the subject corporation, before the vote is taken, written notice of the stockholder's intent to demand payment for his or her shares if the proposed action is effectuated; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Must not vote, or cause or permit to be voted, any of his or her shares of such class or series in favor of the proposed action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If a proposed corporate action creating dissenter's rights is taken by written consent of the stockholders, a stockholder who wishes to assert dissenter's rights with respect to any class or series of shares must not consent to or approve the proposed corporate action with respect to such class or series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. A stockholder who does not satisfy the requirements of subsection 1 or 2 and NRS 92A.400 is not entitled to payment for his or her shares under this chapter.

**N.R.S. 92A.430 Dissenter's notice: Delivery to stockholders entitled to assert rights; contents**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The subject corporation shall deliver a written dissenter's notice to all stockholders of record entitled to assert dissenter's rights in whole or in part, and any beneficial stockholder who has previously asserted dissenter's rights pursuant to NRS 92A.400.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The dissenter's notice must be sent no later than 10 days after the effective date of the corporate action specified in NRS 92A.380, and must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) State where the demand for payment must be sent and where and when certificates, if any, for shares must be deposited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Inform the holders of shares not represented by certificates to what extent the transfer of the shares will be restricted after the demand for payment is received;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Supply a form for demanding payment that includes the date of the first announcement to the news media or to the stockholders of the terms of the proposed action and requires that the person asserting dissenter's rights certify whether or not the person acquired beneficial ownership of the shares before that date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Set a date by which the subject corporation must receive the demand for payment, which may not be less than 30 nor more than 60 days after the date the notice is delivered and state that the stockholder shall be deemed to have waived the right to demand payment with respect to the shares unless the form is received by the subject corporation by such specified date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Be accompanied by a copy of NRS 92A.300 to 92A.500, inclusive.

**N.R.S. 92A.440 Demand for payment and deposit of certificates; loss of rights of stockholder; withdrawal from appraisal process**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A stockholder who receives a dissenter's notice pursuant to NRS 92A.430 and who wishes to exercise dissenter's rights must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Demand payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Certify whether the stockholder or the beneficial owner on whose behalf he or she is dissenting, as the case may be, acquired beneficial ownership of the shares before the date required to be set forth in the dissenter's notice for this certification; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Deposit the stockholder's certificates, if any, in accordance with the terms of the notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If a stockholder fails to make the certification required by paragraph (b) of subsection 1, the subject corporation may elect to treat the stockholder's shares as after-acquired shares under NRS 92A.470.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Once a stockholder deposits that stockholder's certificates or, in the case of uncertified shares makes demand for payment, that stockholder loses all rights as a stockholder, unless the stockholder withdraws pursuant to subsection 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. A stockholder who has complied with subsection 1 may nevertheless decline to exercise dissenter's rights and withdraw from the appraisal process by so notifying the subject corporation in writing by the date set forth in the dissenter's notice pursuant to NRS 92A.430. A stockholder who fails to so withdraw from the appraisal process may not thereafter withdraw without the subject corporation's written consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The stockholder who does not demand payment or deposit his or her certificates where required, each by the date set forth in the dissenter's notice, is not entitled to payment for his or her shares under this chapter.

**N.R.S. 92A.450 Uncertificated shares: Authority to restrict transfer after demand for payment**. The subject corporation may restrict the transfer of shares not represented by a certificate from the date the demand for their payment is received.

**N.R.S. 92A.460 Payment for shares: General requirements**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Except as otherwise provided in NRS 92A.470, within 30 days after receipt of a demand for payment pursuant to NRS 92A.440, the subject corporation shall pay in cash to each dissenter who complied with NRS 92A.440 the amount the subject corporation estimates to be the fair value of the dissenter's shares, plus accrued interest. The obligation of the subject corporation under this subsection may be enforced by the district court:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Of the county where the subject corporation's principal office is located;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the subject corporation's principal office is not located in this State, in the county in which the corporation's registered office is located; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At the election of any dissenter residing or having its principal or registered office in this State, of the county where the dissenter resides or has its principal or registered office.

The court shall dispose of the complaint promptly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The payment must be accompanied by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The subject corporation's balance sheet as of the end of a fiscal year ending not more than 16 months before the date of payment, a statement of income for that year, a statement of changes in the stockholders' equity for that year or, where such financial statements are not reasonably available, then such reasonably equivalent financial information and the latest available quarterly financial statements, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A statement of the subject corporation's estimate of the fair value of the shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) A statement of the dissenter's rights to demand payment under NRS 92A.480 and that if any such stockholder does not do so within the period specified, such stockholder shall be deemed to have accepted such payment in full satisfaction of the corporation's obligations under this chapter.

**N.R.S. 92A.470 Withholding payment for shares acquired on or after date of dissenter's notice: General requirements**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A subject corporation may elect to withhold payment from a dissenter unless the dissenter was the beneficial owner of the shares before the date set forth in the dissenter's notice as the first date of any announcement to the news media or to the stockholders of the terms of the proposed action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. To the extent the subject corporation elects to withhold payment, within 30 days after receipt of a demand for payment pursuant to NRS 92A.440, the subject corporation shall notify the dissenters described in subsection 1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Of the information required by paragraph (a) of subsection 2 of NRS 92A.460;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Of the subject corporation's estimate of fair value pursuant to paragraph (b) of subsection 2 of NRS 92A.460;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) That they may accept the subject corporation's estimate of fair value, plus interest, in full satisfaction of their demands or demand appraisal under NRS 92A.480;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) That those stockholders who wish to accept such an offer must so notify the subject corporation of their acceptance of the offer within 30 days after receipt of such offer; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) That those stockholders who do not satisfy the requirements for demanding appraisal under NRS 92A.480

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Within 10 days after receiving the stockholder's acceptance pursuant to subsection 2, the subject corporation shall pay in cash the amount offered under paragraph (b) of subsection 2 to each stockholder who agreed to accept the subject corporation's offer in full satisfaction of the stockholder's demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Within 40 days after sending the notice described in subsection 2, the subject corporation shall pay in cash the amount offered

**N.R.S. 92A.480 Dissenter's estimate of fair value: Notification of subject corporation; demand for payment of estimate**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. A dissenter paid pursuant to NRS 92A.460 who is dissatisfied with the amount of the payment may notify the subject corporation in writing of the dissenter's own estimate of the fair value of his or her shares and the amount of interest due, and demand payment of such estimate, less any payment pursuant to NRS 92A.460. A dissenter offered payment pursuant to NRS 92A.470 who is dissatisfied with the offer may reject the offer pursuant to NRS 92A.470 and demand payment of the fair value of his or her shares and interest due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A dissenter waives the right to demand payment pursuant to this section unless the dissenter notifies the subject corporation of his or her demand to be paid the dissenter's stated estimate of fair value plus interest under subsection 1 in writing within 30 days after receiving the subject corporation's payment or offer of payment under NRS 92A.460 or 92A.470 and is entitled only to the payment made or offered.

**N.R.S. 92A.490 Legal proceeding to determine fair value: Duties of subject corporation; powers of court; rights of dissenter**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. If a demand for payment pursuant to NRS 92A.480 remains unsettled, the subject corporation shall commence a proceeding within 60 days after receiving the demand and petition the court to determine the fair value of the shares and accrued interest. If the subject corporation does not commence the proceeding within the 60-day period, it shall pay each dissenter whose demand remains unsettled the amount demanded by each dissenter pursuant to NRS 92A.480 plus interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. A subject corporation shall commence the proceeding in the district court of the county where its principal office is located in this State. If the principal office of the subject corporation is not located in this State, the right to dissent arose from a merger, conversion or exchange and the principal office of the surviving entity, resulting entity or the entity whose shares were acquired, whichever is applicable, is located in this State, it shall commence the proceeding in the county where the principal office of the surviving entity, resulting entity or the entity whose shares were acquired is located. In all other cases, if the principal office of the subject corporation is not located in this State, the subject corporation shall commence the proceeding in the district court in the county in which the corporation's registered office is located.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The subject corporation shall make all dissenters, whether or not residents of Nevada, whose demands remain unsettled, parties to the proceeding as in an action against their shares. All parties must be served with a copy of the petition. Nonresidents may be served by registered or certified mail or by publication as provided by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The jurisdiction of the court in which the proceeding is commenced under subsection 2 is plenary and exclusive. The court may appoint one or more persons as appraisers to receive evidence and recommend a decision on the question of fair value. The appraisers have the powers described in the order appointing them, or any amendment thereto. The dissenters are entitled to the same discovery rights as parties in other civil proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Each dissenter who is made a party to the proceeding is entitled to a judgment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For the amount, if any, by which the court finds the fair value of the dissenter's shares, plus interest, exceeds the amount paid by the subject corporation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For the fair value, plus accrued interest, of the dissenter's after-acquired shares for which the subject

**N.R.S. 92A.500 Assessment of costs and fees in certain legal proceedings**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The court in a proceeding to determine fair value shall determine all of the costs of the proceeding, including the reasonable compensation and expenses of any appraisers appointed by the court. The court shall assess the costs against the subject corporation, except that the court may assess costs against all or some of the dissenters, in amounts the court finds equitable, to the extent the court finds the dissenters acted arbitrarily, vexatiously or not in good faith in demanding payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The court may also assess the fees and expenses of the counsel and experts for the respective parties, in amounts the court finds equitable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Against the subject corporation and in favor of all dissenters if the court finds the subject corporation did not substantially comply with the requirements of NRS 92A.300 to 92A.500, inclusive; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Against either the subject corporation or a dissenter in favor of any other party, if the court finds that the party against whom the fees and expenses are assessed acted arbitrarily, vexatiously or not in good faith with respect to the rights provided by NRS 92A.300 to 92A.500, inclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. If the court finds that the services of counsel for any dissenter were of substantial benefit to other dissenters similarly situated, and that the fees for those services should not be assessed against the subject corporation, the court may award to those counsel reasonable fees to be paid out of the amounts awarded to the dissenters who were benefited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. In a proceeding commenced pursuant to NRS 92A.460, the court may assess the costs against the subject corporation, except that the court may assess costs against all or some of the dissenters who are parties to the proceeding, in amounts the court finds equitable, to the extent the court finds that such parties did not act in good faith in instituting the proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. To the extent the subject corporation fails to make a required payment pursuant to NRS 92A.460, 92A.470 or 92A.480, the dissenter may bring a cause of action directly for the amount owed and, to the extent the dissenter prevails, is entitled to recover all expenses of the suit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. This section does not preclude any party in a proceeding commenced pursuant to NRS 92A.460 or 92A.490 from applying the provisions of NRS 17.117 or N.R.C.P. 68.

**<u>EXHIBIT E</u>**

**FORM OF DEMAND**

The undersigned stockholder of Leef Holdings Inc., a Nevada corporation (the "***Company***"), is hereby demanding appraisal of such stockholder's shares of the Company's Common Stock (set forth below) in accordance with Section 92A.300 of the Nevada Revised Statutes as set forth herein in connection with the merger of the Company with and into Icanic Merger Sub, Inc. (the "***Merger***"), which such Merger was first announced to the public on January 24, 2022 (the "***Announcement Date***"):

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| |
|:---|
| [Type name of Stockholder] |
| [Type address of Stockholder] |
| [Type number of shares of Common Stock to which Appraisal is Demanded] |
| [Type date record ownership of such shares of Common Stock were acquired] |
| The undersigned hereby certifies to the Company the information set forth herein. |

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| |
|:---|
| By: |
| Print Name: |
| Title (if an entity): |
| Dated: |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Customer** | **Orders** | **Revenue** | **Gross Profit** | **Gross Profit %** | **Total Quantity** | **Avg $/Order** | **Last Order Date** |
| Bloom Network | 29 | $4716112 | $416014 | 9% | 1123656 | $162624.54 | 12/22/2021 |
| Goodness 4 Life | 15 | $3020262 | $(252842) | -8% | 1169643 | $201350.78 | 2/15/2022 |
| Mendo Distribution and Transportation LLC | 22 | $2277282 | $764483 | 34% | 487269 | $103512.82 | 1/28/2022 |
| Thirty One Labs, LLC | 10 | $2186134 | $551005 | 25% | 938023 | $218613.36 | 3/31/2022 |
| Cura CA, LLC | 9 | $1945261 | $1124315 | 58% | 693939 | $216140.08 | 3/25/2022 |
| Xtracta Distribution, LLC | 31 | $1943726 | $794687 | 41% | 651824 | $62700.83 | 10/15/2021 |
| Ametrine Wellness | 22 | $1793159 | $672349 | 37% | 527739 | $81507.25 | 3/23/2022 |
| Aureus DHS LLC | 51 | $1788326 | $601309 | 34% | 376295 | $35065.21 | 3/23/2022 |
| Pure CA, LLC | 8 | $1478024 | $157156 | 11% | 417385 | $184753.03 | 3/10/2022 |
| Searls Group LLC | 21 | $1381759 | $601467 | 44% | 376497 | $65798.04 | 3/14/2022 |
| Melrose Facility Management LLC | 7 | $1304628 | $484111 | 37% | 320639 | $186375.39 | 12/30/2021 |
| Hash Tag Distribution, Inc | 28 | $1296902 | $522179 | 40% | 465198 | $46317.93 | 3/14/2022 |
| Reaps Company LLC | 9 | $1096869 | $200745 | 18% | 10110 | $121874.36 | 1/25/2021 |
| Mota, Inc | 18 | $948570 | $333989 | 35% | 270781 | $52698.35 | 6/23/2021 |
| Promontory Holdings | 12 | $864688 | $613074 | 71% | 275241 | $72057.33 | 2/22/2022 |
| Korben Labs, LLC | 34 | $862987 | $491445 | 57% | 221090 | $25381.96 | 3/26/2022 |
| Heirloom Valley LLC | 4 | $816877 | $(64448) | -8% | 360500 | $204219.19 | 7/14/2021 |
| ULBP, INC (Scislc, LLC) | 16 | $800330 | $55432 | 7% | 903 | $50020.60 | 3/16/2022 |
| Purity Analytics, LLC | 5 | $770891 | $65126 | 8% | 647 | $154178.24 | 5/11/2021 |
| Higher Purpose Distribution | 4 | $710016 | $(108803) | -15% | 231493 | $177504.06 | 6/30/2021 |
| Sublime Machining Inc. | 30 | $632689 | $312936 | 49% | 133096 | $21089.64 | 3/10/2022 |
| Fumé Growth Fund II, Inc. | 8 | $517044 | $43438 | 8% | 448 | $64630.53 | 4/30/2021 |
| Fluids Manufacturing Inc | 17 | $513962 | $173000 | 34% | 250318 | $30233.04 | 10/28/2021 |
| Green Lion Group | 10 | $494775 | $174423 | 35% | 191877 | $49477.47 | 3/22/2022 |
| Kiva Manufacturing Inc. | 8 | $492930 | $407726 | 83% | 54741 | $61616.27 | 3/24/2022 |
| Nanogen Oakland, LLC | 13 | $492329 | $184878 | 38% | 185133 | $37871.42 | 3/25/2022 |
| 5MIL Logistics, Inc. | 7 | $421885 | $35792 | 8% | 358 | $60269.33 | 3/31/2021 |
| Utopia Manufacturing (Calith Creations) | 10 | $419568 | $193519 | 46% | 207587 | $41956.80 | 3/21/2022 |
| ULBP, INC | 24 | $396421 | $219727 | 55% | 40931 | $16517.55 | 2/24/2022 |
| The Hive Laboratory, LLC | 10 | $357306 | $90830 | 25% | 84739 | $35730.60 | 3/14/2022 |
| Focused Health, LLC | 14 | $322138 | $196429 | 61% | 115036 | $23009.84 | 3/18/2022 |
| Mission Nurseries | 5 | $320594 | $115440 | 36% | 95039 | $64118.75 | 6/25/2021 |
| HPTF Holdings | 4 | $295442 | $32646 | 11% | 103149 | $73860.54 | 3/14/2022 |
| Greenpoint Holdings, LLC | 14 | $279777 | $123538 | 44% | 157602 | $19984.08 | 3/10/2022 |
| Higher Purpose Distribution LLC | 6 | $277310 | $21988 | 8% | 184 | $46218.27 | 10/31/2021 |
| Kiva Sales & Service, Inc | 3 | $270194 | $265596 | 98% | 30038 | $90064.80 | 5/28/2021 |
| Paynes Distribution | 7 | $261134 | $(12) | -0% | 21306 | $37304.92 | 3/1/2022 |
| Urban Therapies Manufacturing (Platinum Vape) | 5 | $232963 | $104827 | 45% | 152363 | $46592.50 | 3/31/2022 |
| Final Bell Corp. (Westside Caregivers Club, Inc) | 7 | $230634 | $131695 | 57% | 29882 | $32947.66 | 2/24/2022 |
| Work Right Building LLC | 6 | $195441 | $11335 | 6% | 167575 | $32573.48 | 1/1/2022 |
| Therapeutic Health Collective | 2 | $154046 | $20450 | 13% | 249 | $77022.80 | 3/9/2021 |
| Axion Dynamics, LLC | 9 | $153212 | $(86219) | -56% | 56464 | $17023.55 | 1/26/2021 |
| Norcal Distribution Solutions, LLC | 2 | $150896 | $23539 | 16% | 30947 | $75448.10 | 12/15/2020 |
| Potters Brand Holdings Inc. | 3 | $149784 | $83749 | 56% | 38312 | $49928.15 | 12/31/2021 |
| Integral Innovations, LLC | 5 | $140888 | $64157 | 46% | 19004 | $28177.66 | 4/15/2021 |
| Cannex Holdings (4 Front Ventures) | 4 | $139596 | $83028 | 59% | 72271 | $34898.94 | 2/21/2022 |
| Emsky, LLC (Emerald Sky) | 13 | $137904 | $65891 | 48% | 43034 | $10608.03 | 3/15/2022 |
| TLG Solutions \| Plug N Play | 1 | $117185 | $65936 | 56% | 22717 | $117184.85 | 3/16/2022 |
| Mendocino Grasslands (Hensley Creek) | 32 | $107473 | $73526 | 68% | 64127 | $3358.53 | 2/24/2022 |
| Evergreen Management Services, LLC | 4 | $106896 | $50869 | 48% | 30463 | $26724.04 | 12/1/2021 |
| Jayne Health LLC | 1 | $104000 | $(28629) | -28% | 25000 | $104000.00 | 3/5/2021 |
| Preferred Brand LLC | 8 | $100258 | $38037 | 38% | 30573 | $12532.21 | 3/15/2022 |
| BRAND NEW CONCEPTS, LLC | 2 | $95902 | $10252 | 11% | 103 | $47951.05 | 3/10/2021 |
| Tetra Worx Inc. | 3 | $92086 | $50429 | 55% | 40940 | $30695.25 | 3/28/2022 |
| High Line Distribution, Inc. | 8 | $89761 | $9168 | 10% | 92 | $11220.17 | 2/26/2021 |
| BPX LLC | 2 | $88248 | $13966 | 16% | 18142 | $44124.15 | 8/17/2021 |
| SCU INC | 1 | $87225 | $17969 | 21% | 22954 | $87225.20 | 7/21/2021 |
| Superior Herbal Health, LLC | 1 | $86817 | $(6488) | -7% | 20190 | $86817.00 | 6/11/2021 |
| Greenfield Organix | 1 | $83731 | $41885 | 50% | 25373 | $83730.90 | 12/31/2021 |
| Metta Distribution and Transportation LLC | 1 | $78379 | $36327 | 46% | 7359 | $78379.00 | 12/11/2020 |
| Pure Vape, Inc | 3 | $78338 | $38615 | 49% | 23264 | $26112.72 | 12/7/2021 |
| Joyus Recreation and Wellness Group, LLC | 4 | $70230 | $24905 | 35% | 17927 | $17557.50 | 10/27/2021 |
| Industrial Court L11, LLC | 2 | $61777 | $5782 | 9% | 59 | $30888.65 | 4/16/2021 |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Voyager Distribution, Inc. | 1 | $57720 | $1400 | 2% | 50 | $57720.0 | 8/13/2021 |
| Crown Genetics LLC (Dabwoods) | 1 | $55000 | $19214 | 35% | 10000 | $55000.0 | 3/15/2022 |
| de Krown Enterprises, LLC | 14 | $50995 | $54950 | 108% | 12953 | $3642.48 | 3/24/2022 |
| Rio Verde Corporation | 3 | $50323 | $382 | 1% | 10517 | $16774.33 | 3/8/2021 |
| Mendogrown Inc. | 10 | $45695 | $31852 | 70% | 48170 | $4569.53 | 5/18/2021 |
| Integrative Partners Group | 2 | $44086 | $27341 | 62% | 12332 | $22042.92 | 11/30/2021 |
| California Loyal, Inc. | 1 | $42011 | $37291 | 89% | 12003 | $42010.5 | 9/14/2021 |
| Dbm Industries, LLC (ThinC) | 3 | $41277 | $22684 | 55% | 24874 | $13759.08 | 1/24/2022 |
| Eden Infusions LLC | 3 | $41175 | $23315 | 57% | 16325 | $13725.0 | 1/17/2022 |
| Highland Park Patient Collective, Inc | 1 | $31624 | $1320 | 4% | 7012 | $31624.12 | 3/25/2021 |
| Eagle Bay Enterprises (PROCAN) | 1 | $30500 | $28923 | 95% | 85390 | $30500.45 | 3/4/2022 |
| Sota Extracts (Halara / State of the Art Extracts) | 6 | $30315 | $11790 | 39% | 6078 | $5052.5 | 3/16/2022 |
| Iron Summit Distribution Inc. | 5 | $29172 | $14804 | 51% | 14536 | $5834.45 | 3/31/2022 |
| March and Ash - Mission Valley | 7 | $23400 | $18051 | 77% | 790 | $3342.86 | 2/17/2022 |
| VBX Labs | 1 | $22400 | $10329 | 46% | 3200 | $22400.0 | 3/4/2022 |
| Mendogrown, Inc. | 8 | $19857 | $12362 | 62% | 8149 | $2482.07 | 7/30/2021 |
| Hueneme Patient Consumer Collective, LLC | 4 | $16930 | $13012 | 77% | 628 | $4232.5 | 11/18/2021 |
| Valley Greens Retail Outlet, Inc. | 4 | $16640 | $15848 | 95% | 439 | $4160.0 | 7/2/2021 |
| Green Bean Pharm LLC | 4 | $16030 | $13756 | 86% | 488 | $4007.5 | 11/10/2021 |
| Omni Manufacturing (Seaport Manufacturing, LLC) | 1 | $15172 | $6737 | 44% | 3852 | $15172.46 | 2/22/2022 |
| Phog Center LLC | 5 | $14888 | $12703 | 85% | 475 | $2977.5 | 11/16/2021 |
| WCW ORGANIZATION INC. | 2 | $14400 | $13751 | 95% | 360 | $7200.0 | 8/6/2021 |
| Erba Collective | 1 | $14306 | $12142 | 85% | 1079 | $14306.0 | 11/23/2021 |
| Space Coyote (Ms. Parker's Flowers LLC) | 2 | $13982 | $4598 | 33% | 3107 | $6990.75 | 2/18/2022 |
| Voyage Distribution | 2 | $12010 | $14045 | 117% | 6005 | $6005.0 | 1/18/2022 |
| BTC Ventures, LLC | 3 | $11478 | $11478 | 100% | 1591 | $3826.0 | 4/23/2021 |
| Eureka Social Operating | 2 | $10628 | $10628 | 100% | 2041 | $5313.75 | 2/1/2022 |
| Elefante Inc (Elephant Extracts LLC) | 2 | $10423 | $3801 | 36% | 849 | $5211.7 | 10/25/2021 |
| TRIM DEPOT | 2 | $10000 | $10000 | 100% | 2010 | $5000.0 | 3/8/2021 |
| March and Ash - Nirvana | 5 | $9900 | $7232 | 73% | 340 | $1980.0 | 2/17/2022 |
| Honey Oil Collective | 3 | $9768 | $9346 | 96% | 329 | $3256.0 | 1/18/2022 |
| March and Ash - Vista | 3 | $9450 | $8047 | 85% | 270 | $3150.0 | 2/17/2022 |
| SF Bay LGSY LLC (Ohaijo LLC) | 2 | $8834 | $8675 | 98% | 37307 | $4417.03 | 12/1/2021 |
| Heritage Mendocino | 1 | $8000 | $7638 | 95% | 200 | $8000.0 | 5/14/2021 |
| Greenfield Organix 4th Street | 1 | $6998 | $3919 | 56% | 3181 | $6998.2 | 3/4/2022 |
| All About Wellness (PDEE Inc) | 3 | $6510 | $3896 | 60% | 280 | $2170.0 | 11/22/2021 |
| Chronic Pain Releaf Center | 1 | $6400 | $6113 | 96% | 160 | $6400.0 | 5/25/2021 |
| Wellgreens (Lake Murray Ventures, LLC) | 4 | $6225 | $1050 | 17% | 415 | $1556.25 | 3/7/2022 |
| Haute Supply LLC | 1 | $5895 | $2659 | 45% | 1310 | $5895.0 | 2/3/2022 |
| Natural Healing Center | 1 | $5600 | $5313 | 95% | 160 | $5600.0 | 8/3/2021 |
| NHC Lemoore LLC | 1 | $5600 | $5313 | 95% | 160 | $5600.0 | 8/20/2021 |
| South Coast Safe Access (SCSA) | 1 | $4905 | $3937 | 80% | 390 | $4905.0 | 11/23/2021 |
| CA Innovation LLC | 1 | $4609 | $242 | 5% | 1213 | $4609.4 | 7/22/2021 |
| March and Ash - Imperial Valley | 1 | $4410 | $4342 | 98% | 98 | $4410.0 | 1/7/2022 |
| March and Ash - City Heights | 2 | $3555 | $3500 | 98% | 79 | $1777.5 | 1/28/2022 |
| Will Kuss | 1 | $3502 | $(0) | 0% | 25 | $3501.77 | 12/28/2020 |
| Atrium | 1 | $3302 | $2559 | 78% | 353 | $3301.53 | 11/19/2021 |
| Heart of Humboldt | 1 | $3200 | $3065 | 96% | 80 | $3200.0 | 8/6/2021 |
| Token Farms Inc. | 1 | $3200 | $3065 | 96% | 80 | $3200.0 | 8/13/2021 |
| Compassionate Heart | 2 | $3150 | $1870 | 59% | 140 | $1575.0 | 11/5/2021 |
| NHC MB LLC | 1 | $2800 | $2665 | 95% | 80 | $2800.0 | 8/3/2021 |
| Golden State Greens | 1 | $2700 | $2169 | 80% | 120 | $2700.0 | 10/18/2021 |
| SCISLC, LLC. | 3 | $2344 | $2225 | 95% | 636 | $781.33 | 3/31/2022 |
| CHILLWORX, LLC | 2 | $2343 | $2343 | 100% | 252 | $1171.4 | 2/12/2021 |
| Kaneh Co | 2 | $2252 | $17 | 1% | 1501 | $1125.75 | 2/11/2022 |
| Honey Suckle Lotus | 1 | $2250 | $2250 | 100% | 3 | $2250.0 | 12/9/2021 |
| March and Ash - H Street | 1 | $2250 | $2216 | 98% | 50 | $2250.0 | 1/6/2022 |
| Matada LLC | 1 | $2209 | $200 | 9% | 2 | $2208.8 | 4/1/2021 |
| Happy Leaf | 1 | $2150 | $1790 | 83% | 165 | $2150.25 | 11/23/2021 |
| Skyhigh LA (Medical Caregivers CO-OP) | 1 | $2000 | $1941 | 97% | 100 | $2000.0 | 11/23/2021 |
| Cannavine (Ukiah Valley Holistics Inc) | 1 | $1680 | $1040 | 62% | 70 | $1680.0 | 11/17/2021 |
| Wild West Industries, Inc. (Mankind Cannabis) | 2 | $1680 | $1013 | 60% | 70 | $840.0 | 12/1/2021 |
| HABBCO | 1 | $661 | $661 | 100% | 9 | $660.93 | 4/15/2021 |
| Heritage Holdings | 1 | $500 | $500 | 100% | 1 | $500.0 | 9/28/2021 |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| Rancho Ecomar (Margarita Depot LLC) | 1 | $380 | $380 | 100% | 1 | $380.00 | 1/28/2022 |
| DHS Developement, Inc. | 1 | $329 | $(133) | -40% | 47 | $329.00 | 2/3/2022 |
| Wellgreens (Lake Murray Ventures LLC) | 2 | $150 | $111 | 74% | 17 | $75.00 | 1/21/2022 |
| Wellgreens CA, Inc (License Expired) | 1 | $150 | $150 | 100% | 2 | $150.00 | 1/6/2022 |
| Washington Sage, LLC | 1 | $79 | $79 | 100% | 2 | $79.00 | 1/21/2021 |
| Leef | 1 | $7 | $0 | 0% | 2 | $7.11 | 5/27/2021 |
| Heart of the Emerald | 1 | $1 | $1 | 100% | 1 | $0.59 | 11/12/2020 |
| Tropicanna | 1 | $0 | $(11) | -12011% | 9 | $0.09 | 11/23/2021 |
|  | 103 | $0 | $0 |  | 0 | $0.00 | 3/30/2022 |
| 9701 Enterprises, Inc. | 1 | $0 | $(26) |  | 5 | $0.00 | 2/21/2021 |
| Cannable Organics, Inc. | 1 | $0 | $0 |  | 0 | $0.00 | 11/20/2020 |
| Cannaco Research Corp. | 4 | $0 | $178 |  | 1 | $0.00 | 11/24/2021 |
| Cannasafe | 35 | $0 | $(3916) |  | 821 | $0.00 | 1/31/2021 |
| CRFT Manufacturing, INC | 2 | $0 | $(27) |  | 8 | $0.00 | 12/22/2020 |
| CW Analytical Laboratories | 1 | $0 | $(182) |  | 30 | $0.00 | 1/7/2021 |
| Double Barrel | 1 | $0 | $(92) |  | 20 | $0.00 | 11/30/2020 |
| Encore Labs | 2 | $0 | $(85) |  | 40 | $0.00 | 3/25/2022 |
| I.O.N. Distribution LLC | 1 | $0 | $(30) |  | 6 | $0.00 | 2/26/2021 |
| Icanic | 1 | $0 | $(1492) |  | 154 | $0.00 | 11/1/2021 |
| KDM Holdings, LLC | 1 | $0 | $(533) |  | 57 | $0.00 | 1/28/2022 |
| Kevin Wilson | 1 | $0 | $0 |  | 0 | $0.00 | 12/17/2020 |
| Kinda High | 1 | $0 | $(443) |  | 166 | $0.00 | 3/4/2022 |
| Legion of Bloom | 1 | $0 | $(86) |  | 34 | $0.00 | 3/15/2022 |
| Long Beach Distribution Solutions |  | $0 | $49287 |  | -15153 |  |  |
| Matanzas Alliance LLC | 1 | $0 | $0 |  | 0 | $0.00 | 11/30/2020 |
| Miracle Education | 1 | $0 | $0 |  | 0 | $0.00 | 3/9/2021 |
| New Normal | 1 | $0 | $(93) |  | 28 | $0.00 | 3/28/2022 |
| Preferred Brand LLC (Canna Network/Ganja Gold) | 1 | $0 | $0 |  | 0 | $0.00 | 12/31/2021 |
| SC Labs California LLC | 43 | $0 | $(1443) |  | 471 | $0.00 | 4/8/2021 |
| Seed 2 Soul | 1 | $0 | $(243) |  | 40 | $0.00 | 1/4/2021 |
| ThinC | 1 | $0 | $(315) |  | 240 | $0.00 | 11/2/2021 |
| Vista Prime | 1 | $0 | $(399) |  | 110 | $0.00 | 3/31/2022 |
| Kelly Mayhugh |  | $(1229) | $(1229) | 100% | -1 |  |  |
| **Total** | **829** | $**42845104** | $**12170417** | **28%** | **11881922** | $**51682.88** | **3/31/2022** |

---

Available upon request.

**COMPANY SUPPLEMENTAL DISCLOSURE LETTER**

**STRICTLY CONFIDENTIAL**

The Directors

**ICANIC BRANDS COMPANY INC.**

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

April <u>20</u>, 2022

**Re: Merger Agreement dated January 21, 2022 (the "Merger Agreement"), between lcanic Brands Company Inc. (the "Purchaser"), LEEF Holdings, Inc. (the "Company"), lcanic Merger Sub, Inc., and Micah Anderson**

Dear Sirs:

&nbsp;&nbsp;&nbsp;&nbsp;1. We
 refer to the Merger Agreement relating to the proposed acquisition of the entire issued share capital of the Company.

2. This
 letter constitutes the Company's updated Disclosure Letter as required by Section 6.4 of the Merger Agreement (referred to
 herein as the **"Supplemental Disclosure Letter").** 

3. Capitalized
 words and expressions used in this Supplemental Disclosure Letter have the same meanings as ascribed to such capitalized words and
 expressions in the Merger Agreement unless otherwise defined herein or the context otherwise requires.

4. All
 matters described in this Supplemental Disclosure Letter are to be taken as having been "disclosed" in accordance with
 the provisions of Section 6.4 of the Merger Agreement for the purposes of the Merger Agreement.

**<u>Section 4.1 (b)</u>**

The Company terminated its proposed acquisition of Arvin Drying Facility, LLC.

The Company entered into that certain Letter of Interest dated February 23, 2022 with DNA Organics, Inc. (the **"DNA LOI").**

The Company acquired Leef Investments, Inc., one of its existing stockholders, and issue to the stockholders of Leef Investments, Inc. an aggregate amount of 6,077,400 Company Common Shares in exchange for the 6,077,400 Company Common Shares held by Leef Investments, Inc. (the **"LEEF Reorg").** Leef Investments, Inc. is now a wholly-owned subsidiary.

**<u>Section 4.l(h)</u>**

The DNA LOI

**<u>Section 4.l(m)</u>**

The Company issued an aggregate amount of 790,254 shares as the Bayline Shares.

The Company raised $3,600,000.00 in the aggregate in an equity financing and issued an aggregate of 2,727,272 Company Common Shares.

The Company exchanged an aggregate of 6,077,400 Company Common Shares in the LEEF Reorg.

**<u>Section 4.l(cc)</u>**

The DNA LOI

Yours faithfully,

*/s/ Micah Anderson*

Micah Anderson

Chief Executive Officer

LEEF Holdings, Inc.

We hereby accept the contents of this Supplemental Disclosure Letter and acknowledge receipt of the same

Brandon Kao

lcanic Brands Company, Inc.

Brandon Kao

lcanic Merger Sub, Inc.

Available upon request.

**LEEF HOLDINGS, INC.**

5580 La Jolla Boulevard #395

La Jolla, California 92037

April 13, 2022

**<u>DRAG ALONG NOTICE</u>**

To the stockholders of LEEF Holdings, Inc.:

As you are aware, LEEF Holdings, Inc., a Nevada corporation (the "***Company***"), has entered into that certain Merger Agreement dated January 21, 2022 (the "***Merger Agreement***") by and among Icanic Brands Company Inc., a Company incorporated pursuant to the *Business Corporations Act (British Columbia)* (the "***Purchaser***"), Icanic Merger Sub, Inc. ("***Merger Sub***"), a Nevada corporation and wholly- owned subsidiary of Purchaser, and Micah Anderson in his capacity as the stockholders' representative, pursuant to which the Company will be merged with and into Merger Sub with the Company surviving as a wholly-owned subsidiary of Purchaser (the "***Merger***").

On or about January 27, 2022, the Company delivered to you a Confidential Information Statement (the "***Information Statement***") that described the terms and conditions of the Merger and which also requested that you execute and deliver a written consent of the stockholders approving the Merger on the terms and conditions set forth in the Merger Agreement and further described in the Information Statement (the "***Written Consent***"). As of the date hereof, the Company has still not received your executed Written Consent to the Merger.

As a stockholder of the Company, you are a party to that certain Stockholders' Agreement dated January 28, 2019 (the "***Stockholders' Agreement***"). This notice is being sent to you by order of the Company's Board of Directors (the "***Board***") pursuant to Section 5.4(b) of the Stockholders' Agreement to notify you that (i) the Merger Agreement is a Drag-Along Offer (as defined in the Stockholders' Agreement), (ii) the Controlling Stockholders (as defined in the Stockholders' Agreement) have determined to sell a Control Block (as defined in the Stockholders' Agreement) pursuant to the terms and conditions set forth in the Merger Agreement, (iii) the Board has unanimously approved the Merger Agreement, (iv) the shares of the Company's common stock held by you are Dragged Interests (as defined in the Stockholders' Agreement) and (v) the Board is requiring you to participate in the Merger with respect to your Dragged Interests on the terms and conditions set forth in the Merger Agreement and as further described in the Information Statement. A copy of the Information Statement and Merger Agreement, is enclosed with this notice for your reference.

In order to efficiently close the Merger transaction, the Board hereby respectfully requests that as a holder of Dragged Interests you promptly execute and deliver to the Company your Written Consent and other materials requested in the Information Statement by no later than April 19, 2022. Should your Written Consent not be received by that date, Micah Anderson, as the Designated Officer (as defined in the Stockholders' Agreement), shall execute the Written Consent on your behalf as your attorney-in-fact pursuant to Section 10.9 of the Stockholders' Agreement.

Should you have any further questions, please contact Jason R. Wisniewski, legal counsel to the Company, by mail, email or telephone at:

Jason R. Wisniewski, Esq.

Jackson Tidus, A Law Corporation

2030 Main Street, 12<sup>th</sup> Floor

Irvine, CA 92614

(949) 851-7647

jwisniewski@jacksontidus.law

**LEEF HOLDINGS, INC.**

5580 La Jolla Boulevard #395

La Jolla, California 92037

Your prompt attention to this matter is greatly appreciated. By order of the Board of Directors.

---

| |
|:---|
| Yours truly, |
| LEEF HOLDINGS, INC. |
| */s/ Micah Anderson* |
| Micah Anderson |
| Chief Executive Officer |

---

Enclosures (Information Statement)

Available upon request.

**EMPLOYMENT AGREEMENT**

This Employment Agreement (this "**Agreement**") is entered into as of April <u>20</u>, 2022 by and between Icanic Brands Company Inc., a company incorporated pursuant to the *Business Corporations Act* (British Columbia) (the "**Corporation**"), and Micah Anderson, an individual and resident of the State of California (hereinafter called "**Executive**").

<u>W I T N E S S E T H</u>:

**WHEREAS**, this Agreement is entered into in connection with that certain Merger Agreement dated as of January 21, 2022 (the "**Merger Agreement**") by and among the Corporation, LEEF Holdings, Inc., a Nevada corporation (the "**Company**"), Icanic Merger Sub, Inc., a Nevada corporation ("**Subco**"), and Micah Anderson, in his capacity as representative of the Company Stockholders, pursuant to which Subco was merged with and into the Company with the Company surviving as a wholly-owned subsidiary of the Corporation (the "**Merger**");

**WHEREAS**, the Closing (as defined in the Merger Agreement) of the Merger is conditioned upon the execution and delivery of this Agreement; and

**WHEREAS**, the Corporation and/or its Affiliates (as defined below) desires to employ Executive from and after the Closing under the terms of this new Agreement, and Executive is willing to accept such employment on the terms and subject to the conditions hereinafter set forth from and after the Closing.

**NOW, THEREFORE**, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment by Corporation; Location</u>. The Corporation and/or its Affiliates hereby agrees to employ Executive as the Company's full-time Chief Executive Officer. As the Company's Chief Executive Officer, Executive will report to the Corporation's Board of Directors (the "**Board of Directors**"), and shall have such duties consistent with that of a Chief Executive Officer of the Company and/or that may from time to time be designated or assigned to Executive pursuant to the directives of the Board of Directors. Upon mutual agreement of the Corporation and Executive, the Executive's title and/or position may be changed.

Except for travel when and as required in the performance of Executive's duties hereunder, Executive shall perform his duties hereunder from the Company's principal executive offices in San Diego, California. Executive shall not be required to relocate his primary residency to perform his duties under this Agreement. Executive shall only be required to travel to the Corporation's corporate headquarters not more than once a calendar quarter and for any scheduled meetings of the Board of Directors or meetings in which the entire executive team is required.

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| | | |
|:---|:---|:---|
| - 1 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Executive's Acceptance of Employment</u>. Executive hereby accepts such employment and agrees that throughout the period of his employment hereunder, he will devote the necessary attention, knowledge and skills, faithfully, diligently and to the best of his ability, in furtherance of the business of the Corporation and companies in which the Corporation owns at least 50% of the entity's voting shares (its "**Affiliates**"), he will perform the duties assigned to him pursuant to <u>Section 1</u> hereof, subject, at all times, to the direction and control of the Board of Directors, and he will do such reasonable traveling as may be required of him in the performance thereof. Notwithstanding the foregoing, the Corporation acknowledges that Executive currently maintains an ownership interest in the entities identified in Attachment A and that Executive shall be authorized to devote sufficient time to managing those investments provided that (i) such activities in no way interfere with the performance of Executive's duties pursuant to this Agreement, and (ii) Executive will not take on any additional ownership interests in any other cannabis related entities absent disclosure to and approval of the Board of Directors, not to be unreasonably withheld. Notwithstanding the foregoing and for the avoidance of doubt, Executive shall be entitled to receive equity in third-party entities applying for cannabis licenses that utilize Executive's resume from time to time; *provided*, Executive first brings such opportunities to the Corporation.

Executive shall at all times be subject to, observe and carry out such rules, regulations, policies, directions and restrictions as the Corporation shall from time to time establish. Executive agrees that he shall not, without the prior written approval of the Board of Directors, directly or indirectly, accept employment or compensation from or perform services of any nature for, any business enterprise other than the Corporation and its Affiliates, excluding those entities attached on <u>Attachment A</u>. Nothing in this Agreement shall preclude Executive from engaging in appropriate civic, charitable or religious activities or from devoting a reasonable amount of time to private investments, as long as such activities and/or services do not interfere or conflict with his responsibilities or duties to the Corporation as determined by the Board of Directors in its sole reasonable discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term</u>. The term of Executive's employment under this Agreement shall be the period commencing on the Closing Date (as defined in the Merger Agreement) and continuing until the third (3<sup>rd</sup>) anniversary thereof, unless terminated earlier pursuant to <u>Section 7</u> (the "**Initial Term**"). At the conclusion of the Initial Term, this Agreement shall automatically renew for successive one (1) year terms (each, a "**Renewal Term**") unless either party gives the other written notice of non-renewal at least ninety (90) days' prior to the end of the Initial Term or a Renewal Term, as the case may be, and subject to earlier termination as provided in <u>Section 7</u> hereof. As used in this Agreement, the "**Term**" shall mean the Initial Term together with any Renewal Terms, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Compensation/Bonus/Options/Benefits/Equity</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 The Corporation will pay to Executive as compensation for his services hereunder an annual base salary (the "**Base Salary**") of Two Hundred Fifty Thousand U.S. Dollars (US$250,000) per annum payable in equal installments in accordance with the Corporation's normal payroll policy, but not less than monthly. The Base Salary shall be reviewed annually by Executive and the Board of Directors may be increased at any time; *provided, however*, that Executive's Base Salary shall not be subject to reduction. Upon any increase to Executive's Base Salary, the then current salary as so increased shall be the "Base Salary" for purposes of this Agreement.

---

| | | |
|:---|:---|:---|
| - 2 - | Initial | ![](sign_001.jpg) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Commencing with the calendar year ending December 31, 2021, and for each calendar year thereafter while this Agreement is in effect (each, a "**Plan Year**"), Executive shall be eligible for an annual incentive performance bonus (the "**Incentive Bonus**"). The target potential amount of the Incentive Bonus payable to Executive shall be up to 100% of Executive's Base Salary earned during the applicable Plan Year. The Incentive Bonus will be conditioned on the satisfaction of individual and company objectives as set forth below and subject to <u>Section 7</u> of this Agreement, and shall be payable on or before February 15 of the year following the Plan Year. By the end of January of each Plan Year, the Corporation's Board of Directors and/or Compensation Committee of the Board of Directors and Executive shall jointly establish the incentive target objectives that Executive has to meet to earn the Incentive Bonus; *provided, however*, for the initial partial year of this Agreement through December 31, 2021, the targets shall be those as previously determined by the Board of Directors of the Company pursuant to the terms and conditions of Executive's Prior Agreement (as defined below). The payment of any Incentive Bonus pursuant to this <u>Section 4.2</u> shall be made in accordance with the normal payroll practices of the Corporation, less required deductions for state and federal withholding tax, social security and all other employment taxes and authorized payroll deductions, and provided Executive satisfies the conditions for earning the Incentive Bonus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 Effective upon the Closing, the Corporation shall grant you stock options to purchase up to 7,508,259(as adjusted for stock splits, reclassifications and the like) shares (the "**Option Shares**") of the Company's common stock. The Option Shares shall vest in thirty-six (36) equal monthly installments over the three (3) year period measured from the date of Closing subject to Executive's continuing employment, and such options shall have an expiration date of five (5) years from the date of grant. Additionally, following the Closing, the Executive shall, subject to the approval of the Board of Directors, receive such other grants of Option Shares, restricted stock ("**Restricted Stock**") and/or restricted stock units ("**RSUs**", and together with the Option Shares and Restricted Stock, the "**Equity Awards**") in connection with (a) Executive's individual performance and/or (b) the performance of the Corporation and/or certain operating subsidiaries of the Corporation (including the Company and its subsidiaries), in each case equivalent in amount and value granted to other similar situated executives of the Corporation. All such Equity Awards shall be issued pursuant to, and subject to the terms and conditions of the Corporation's stock option and incentive plan adopted by the shareholders of the Corporation on May 27, 2016, as amended from time to time (the "**Equity Plan**") and an award agreement thereunder (the "**Award Agreement**") to be entered into with the Corporation. The Equity Awards shall vest as set forth in the Award Agreement; *provided*, that to the extent the Corporation grants any Equity Awards to Executive during the Term, then the Corporation shall in such Award Agreement provide that (x) in the event a Change of Control (as defined below) is consummated during the Term, or (y) Executive either (i) is terminated other than for Cause, death or Disability or (ii) resigns for Good Reason (as defined below), then all of Executive's unvested Equity Awards shall automatically and immediately vest in full. Executive shall, subject to the approval of the Board of Directors, participate in a management incentive plan (the "**Management Plan**"). The Management Plan shall allocate stock grants of the Corporation's common shares based on all business acquisitions (whether by merger, asset purchase or stock purchase) completed by the Corporation as well as revenue growth of the Corporation post-closing of any such acquisition transaction. The Management Plan shall also provide for stock grants of the Corporation's common shares to Executive if there is a Change of Control (as defined below) of the Corporation.

---

| | | |
|:---|:---|:---|
| - 3 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 Executive shall be entitled to the Corporation's group medical and dental insurance benefits. At Executive's request, however, in lieu of providing Executive with group medical and dental insurance benefits, the Corporation shall reimburse Executive for the cost of obtaining his own private medical and dental insurance policy, provided that the monthly amount of such insurance premiums shall not exceed Five Thousand Dollars ($5,000) per month. Executive shall also be entitled to a life insurance policy covering his own death with the beneficiary as determined by Executive in his sole discretion in the amount of not less than One Million U.S. Dollars (US$1,000,000) with the Corporation responsible for paying all expenses and premiums of such policy during the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 The Corporation recognizes that Executive is required to drive throughout California to fully perform his duties. As such the Corporation agrees to provide Executive with a monthly auto subsidy of One Thousand U.S. Dollars (US$1,000), and shall also reimburse Executive up to Two Thousand U.S. Dollars (US$2,000) for other travel expense, including airfare. Such auto subsidy payments shall be in lieu of any obligation to reimburse Executive for mileage or other driving related expenses, notwithstanding any other policy of the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 The Corporation shall issue to Executive and/or to such other employees of the Corporation and its Affiliates as the Executive shall direct, the following performance equity payments (capitalized terms used in this <u>Section 4.6</u> shall have the meaning ascribed to them in the Merger Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On the First Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(a) of the Merger Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On the Second Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(b) of the Merger Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On the Third Payout-Date, a number of Resulting Issuer Common Shares equal to the number of Earnout-Shares issued to the Company Stockholders pursuant to Section 2.9(c) of the Merger Agreement.

The Resulting Issuer Common Shares issuable pursuant to this <u>Section 4.6</u> may be issued as Equity Awards under the Equity Plan; *provided*, that such Resulting Issuer Common Shares so issued under the Equity Plan shall be fully vested upon issuance and shall not be subject to vesting or any other condition of issuance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Business Expenses</u>. For business travel related to Executive's duties, the Corporation shall reimburse Executive for all out-of-pocket expenses reasonably incurred by him in accordance with the Corporation's travel and entertainment policy and procedures and any amendment thereof that the Corporation may adopt during his employment. Executive shall be authorized to fly Business Class or First Class for any air travel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Vacation</u>. Executive shall be entitled to vacation in accordance with the Corporation's vacation policy as in effect from time to time; provided that Executive shall be entitled to no less than a minimum amount of six (6) weeks per year.

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| - 4 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Termination by the Corporation for Cause</u>. The Corporation may terminate Executive's employment immediately at any time and without notice for "Cause", subject to any applicable notice and cure period. For purposes of this Agreement, "**Cause**" shall mean (a) a material breach by Executive of his obligations under this Agreement that is not cured within thirty (30) days following receipt of written notice thereof from the Corporation's Board of Directors; (b) Executive's theft or knowing falsification of any Corporation documents or records; (c) Executive's conviction (including any plea of guilty or nolo contendere) of any felony or other misdemeanor (excepting in each case any conviction or plea relating to any charge associated with state or federal laws relating to cannabis, hemp, psychedelics and/or money laundering or tax fraud from related activities) that involves theft, fraud or an act of dishonesty; (d) Executive's repeated failure to perform his duties on behalf of the Corporation in a competent and diligent manner, which such failure causes material financial harm to the Corporation, if such failure is not cured within thirty (30) days following receipt of written notice thereof from the Corporation's Board of Directors. Any notice of termination required under this <u>Section 7.1</u> shall identify the events or conduct constituting the grounds for termination with sufficient specificity so as to enable Executive to take steps to cure such default as permitted. In the event Executive's employment is terminated in accordance with this <u>Section 7.1</u>, Executive shall be entitled to receive only the Base Salary through the effective date of termination, plus payment for any expenses that may be due hereunder through the effective date of termination, plus any other amounts required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Termination Without Cause By The Corporation/By the Executive for Good Reason/By the Corporation - Separation Package</u>. In the event that at any time (a) the Corporation terminates Executive's employment under this Agreement without Cause (as defined above) or (b) Executive terminates his employment for Good Reason, Executive will receive all Base Salary and Incentive Bonus amounts payable through the effective date of termination plus (A) a lump sum cash severance payment equal to twenty-four (24) months of his Base Salary then in effect, plus (B) a lump sum cash severance payment for a prorated portion of any Incentive Bonus for which Executive was eligible during the Plan Year in which the termination occurs, provided that the relevant milestones have been achieved on a pro rata basis for the relevant period, plus (C) payment for any expenses that may be due hereunder through the effective date of termination, plus (D) any other amounts required by applicable law. In addition, all Equity Awards granted shall fully accelerate and vest. For the purposes of this Agreement, the term "**Good Reason**" shall mean (i) any material reduction in Executive's annual Base Salary, bonus potential or overall compensation, (ii) Executive's position, authority, or duties are materially reduced, (iii) Executive's assigned work location is moved to a location more than 50 miles from San Diego, California, or (iv) the Corporation materially breaches the provisions of this Agreement and fails to cure such breach within thirty (30) days following receipt of written notice thereof from Executive. Executive shall not be entitled to any portion of the Separation Package described in this <u>Section 7.2</u> unless Executive first executes, and does not revoke as may be allowed by law, a complete release of all claims in favor of the Corporation, its employees, officers, and agents, in form chosen by the Corporation in its reasonable discretion.

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| - 5 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Termination by the Corporation for Disability or upon Death</u>. This Agreement shall automatically terminate upon the death of Executive. In addition, this Agreement may be terminated by the Corporation upon Executive's Disability. For the purposes of this Agreement, the term "**Disability**" shall mean Executive's failure to substantially perform his duties hereunder for either three (3) consecutive months or an aggregate of 120 days in any rolling twelve (12) month period, as determined by the Board acting in good faith, and after making reasonable accommodations and complying with all requirements of the Americans with Disabilities Act and any state law equivalent legislation. Any questions as to the existence, extent or potentiality of illness or incapacity of Executive upon which the Corporation and Executive cannot agree shall be determined by a qualified independent physician selected by Executive, a physician selected by the Corporation's Board of Directors, and a third physician selected by the other two physicians. The determination of such physicians certified in writing to Executive and to the Corporation shall be final and conclusive for all purposes of this Agreement. In the event Executive's employment is terminated in accordance with this <u>Section 7.3</u>, Executive shall be entitled to receive (a) the Base Salary through the effective date of termination, plus (b) payment for any expenses that may be due hereunder through the effective date of termination, plus (c) a lump sum cash severance payment for a prorated portion of any Incentive Bonus for which Executive was eligible during the Plan Year in which the termination occurs, provided that the relevant milestones have been achieved on a pro rata basis for the relevant period, plus (d) any other amounts required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Termination Upon a Change of Control</u>. For purposes of this Agreement, "**Change of Control**" shall mean: (1) a merger or consolidation or the sale or exchange by the stockholders of the Corporation of all or substantially all of the capital stock of the Corporation, where the stockholders of the Corporation immediately before such transaction do not obtain or retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock or other voting equity of the surviving or acquiring corporation or other surviving or acquiring entity, in substantially the same proportion as before such transaction; (2) any transaction or series of related transactions to which the Corporation is a party in which in excess of fifty percent (50%) of the Corporation's voting power is transferred; or (3) the sale or exchange of all or substantially all of the Corporation's assets (other than a sale or transfer to a subsidiary of the Corporation as defined in section 424(f) of the Internal Revenue Code of 1986, as amended (the "**Code**")), where the stockholders of the Corporation immediately before such sale or exchange do not obtain or retain, directly or indirectly, at least a majority of the beneficial interest in the voting stock or other voting equity of the corporation or other entity acquiring the Corporation's assets, in substantially the same proportion as before such transaction; *provided, however*, that a Change of Control shall not be deemed to have occurred pursuant to any transaction or series of transactions relating to a public or private financing or re-financing, the principal purpose of which is to raise money for the Corporation's working capital or capital expenditures and which does not result in a change in a majority of the members of the Board of Directors. Immediately preceding a Change of Control, any then unvested portion of the Option will become fully vested. If, within three (3) months immediately preceding a Change of Control or within six (6) months immediately following a Change of Control, the Executive's employment is terminated by the Corporation for any reason other than Cause or because of a Disability, then the Executive shall be entitled to receive each of the payments, accelerated vesting and other benefits provided in <u>Section 7.2</u> above.

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| - 6 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Resignation</u>. In the event that Executive resigns or otherwise terminates this Agreement, other than for Good Reason, Executive will only be entitled to receive Executive's Base Salary earned up to the date of termination and all Option Shares and other Equity Awards that have vested up to and including such date of termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Duty of Loyalty</u>. In consideration of the Corporation entering into this Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Executive agrees that during the Term of this Agreement he will not directly or indirectly own, manage, operate, join, control, participate in, perform any services for, invest in, or otherwise be connected with, in any manner, whether as an officer, director, employee, consultant, partner, investor or otherwise, any business entity which is engaged in any business in which the Corporation or any of its Affiliates is currently engaged or is engaged at the termination of this Agreement, *provided however* that nothing in this <u>Section 8.1</u> shall be deemed to prohibit Executive (a) from managing the businesses or his investments identified on <u>Attachment A</u> or (ii) investing his funds in securities of a company if the securities of such company are listed for trading on a national stock exchange or traded in the over-the-counter market and Executive's holdings therein represent less than five percent (5%) of the total number of shares or principal amount of other securities of such company outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 Executive agrees that Executive will not, during the Term, and during the one (1) year period following the termination of the Executive's employment, directly or indirectly, by action alone or in concert with others, induce or influence, or seek to induce or influence any person who is engaged by the Corporation or any of its Affiliates as an employee, agent, independent contractor or otherwise, to terminate his employment or engagement, nor shall Executive, directly or indirectly, through any other person, firm or corporation, employ or engage, or solicit for employment or engagement, or advise or recommend to any other person or entity that such person or entity employ or engage or solicit for employment or engagement, any person or entity employed or engaged by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Confidentiality Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 As used herein, the term "**Confidential Information**" shall mean any and all information of the Corporation and of its Affiliates (for purposes of <u>Sections 9</u>, <u>10</u> and <u>11</u> of this Agreement, the Corporation's Affiliates shall be deemed included within the meaning of "**Corporation**"), including, but not limited to, all data, compilations, programs, devices, strategies, or methods concerning or related to (a) the Corporation's finances, financial condition, results of operations, employee relations, amounts of compensation paid to officers and employees and any other data or information relating to the internal affairs of the Corporation and its operations; (b) the terms and conditions (including prices) of sales and offers of sales of the Corporation's products and services; (c) the terms, conditions and current status of the Corporation's agreements and relationship with any customer or supplier; (d) the customer and supplier lists and the identities and business preferences of the Corporation's actual and prospective customers and suppliers or any employee or agent thereof with whom the Corporation communicates; (e) the trade secrets, manufacturing and operating techniques, price data, costs, methods, systems, plans, procedures, formulas, processes, hardware, software, machines, inventions, designs, drawings, artwork, blueprints, specifications, and strategic plans possessed, developed, accumulated or acquired by the Corporation; (f) any communications between the Corporation, its officers, directors, shareholders, or employees, and any attorney retained by the Corporation for any purpose, or any person retained or employed by such attorney for the purpose of assisting such attorney in his or her representation of the Corporation; (g) any other non-public information and knowledge with respect to the Corporation's products, whether developed or in any stage of development by the Corporation; (h) the abilities and specialized training or experience of others who as employees or consultants of the Corporation during the Executive's employment have engaged in the design or development of any such products; and (i) any other matter or thing, whether or not recorded on any medium, (x) by which the Corporation derives actual or potential economic value from such matter or thing being not generally known to other persons or entities who might obtain economic value from its disclosure or use, or (y) which gives the Corporation an opportunity to obtain an advantage over its competitors who do not know or use the same.

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| - 7 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 Executive acknowledges and agrees that the Corporation is engaged in a highly competitive business and has expended, or will expend, significant sums of money and has invested, or will invest, a substantial amount of time to develop and maintain the secrecy of the Confidential Information. The Corporation has thus obtained, or will obtain, a valuable economic asset which has enabled, or will enable, it to develop an extensive reputation and to establish long-term business relationships with its suppliers and customers. If such Confidential Information were disclosed to another person or entity or used for the benefit of anyone other than the Corporation, the Corporation would suffer irreparable harm, loss and damage. Accordingly, Executive acknowledges and agrees that, unless the Confidential Information becomes publicly known through legitimate origins not involving an act or omission by Executive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Confidential Information is, and at all times hereafter shall remain, the sole property of the Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive shall use his best efforts and the utmost diligence to guard and protect the Confidential Information from disclosure to any competitor, customer or supplier of the Corporation or any other person, firm, corporation or other entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) unless the Corporation gives Executive prior express written permission, during his employment and thereafter, Executive shall not use for his own benefit, or divulge to any competitor or customer or any other person, firm, corporation, or other entity, any of the Confidential Information which Executive may obtain, learn about, develop or be entrusted with as a result of Executive's employment by the Corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 Executive also acknowledges and agrees that all documentary and tangible Confidential Information including, without limitation, such Confidential Information as Executive has committed to memory, is supplied or made available by the Corporation to the Executive solely to assist him in performing his services under this Agreement. Executive further agrees that after his employment with the Corporation is terminated for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Executive shall not remove from the property of the Corporation and shall immediately return to the Corporation, all documentary or tangible Confidential Information in his possession, custody, or control and not make or keep any copies, notes, abstracts, summaries or other record of any type of Confidential Information; and

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| - 8 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Executive shall immediately return to the Corporation any and all other property of the Corporation in his possession, custody or control, including, without limitation, any and all keys, security cards, passes, credit cards and marketing literature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 Execute understands that nothing in this Agreement prohibits Executive from reporting to any governmental authority information concerning possible violations of law or regulation and that Executive may disclose Confidential Information to a government official or to an attorney and use it in certain court proceedings without fear of prosecution or liability, provided Executive files any document containing Confidential Information under seal and does not disclose the Confidential Information, except pursuant to court order.

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| - 9 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Remedies</u>. Executive acknowledges and agrees that the business of the Corporation is highly competitive and that the provisions of <u>Sections 8</u>, <u>9</u> and <u>10</u> are reasonable and necessary for the protection of the Corporation and that any violation of such covenants would cause immediate, immeasurable and irreparable harm, loss and damage to the Corporation not adequately compensable by a monetary award. Accordingly, Executive agrees without limiting any of the other remedies available to the Corporation, that any violation of said covenants, or any one of them, may be enjoined or restrained by any court of competent jurisdiction, and that any temporary restraining order or emergency, preliminary or final injunctions may be issued by any court of competent jurisdiction, without notice and without bond. In the event any proceedings are commenced by the Corporation against Executive for any actual or threatened violation of any of said covenants and if the Corporation prevails in such litigation, then, Executive shall be liable to the Corporation for, and shall pay to the Corporation, all costs and expenses of any kind, including reasonable attorneys' fees, which the Corporation may incur in connection with such proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Entire Agreement</u>. This Agreement constitutes the entire agreement of the parties hereto with respect to the matters set forth herein and no amendment or modification hereof shall be valid or binding unless made in writing and signed by both parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. Any notice, required, permitted or desired to be given pursuant to any of the provisions of this Agreement shall be deemed to have been sufficiently given or served for all purposes if delivered in person or sent by certified mail, return receipt requested, postage and fees prepaid as follows:

if to the Corporation at:

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attn: Brandon Kou

and, if to Executive:

Micah Anderson

2752 Carriagedale Row

La Jolla, CA 92037

Either of the parties hereto may at any time and from time to time change the address to which notice shall be sent hereunder by notice to the other party given as provided herein. The date of the giving of any notice hereunder shall be the date delivered or if sent by mail, shall be the date of the posting of the mail.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Non-Assignability</u>. Neither this Agreement nor the right to receive any payments hereunder may be assigned by Executive except as may be permitted by the laws of decent or distribution in the event of Executive's death or disability. This Agreement shall be binding upon Executive and inure to the benefit of his heirs, executors and administrators and be binding upon the Corporation and inure to the benefit of its successors and assigns.

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| - 10 - | Initial | ![](sign_001.jpg) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Choice of Law And Forum</u>. This Agreement shall be governed, interpreted and construed under the laws of the State of California without regard to its conflict of law principles. The parties agree that any dispute or litigation arising in whole or in part hereunder shall only be litigated in any state or Federal court of competent subject matter jurisdiction sitting in San Diego County, California, to the jurisdiction of which and venue in which each party irrevocably consents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Waiver</u>. No course of dealing nor any delay on the part of any party in exercising any rights hereunder shall operate as a waiver of any such rights. No waiver of any default or breach of this Agreement shall be deemed a continuing waiver or a waiver of any other breach or default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Severability</u>. If any provision of this Agreement, including any paragraph, sentence, clause or part thereof, shall be deemed contrary to law or invalid or unenforceable in any respect by a court of competent jurisdiction, the remaining provisions of such paragraph, sentence, clause or part thereof shall not be affected, but shall, subject to the discretion of such court, remain in full force and effect and any invalid and unenforceable provisions shall be deemed, without further action on the part of the parties hereto, modified, amended and limited to the extent necessary to render the same valid and enforceable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Counterparts</u>. This Agreement may be executed in counterparts (by physical or electronic means, including DocuSign), each of which shall be deemed an original and together shall constitute one and the same agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Survival at Termination</u>. The termination of this Agreement or Executive's employment hereunder shall not affect either party's obligations under this Agreement which by the nature thereof are intended to survive any such termination including, without limitation, Executive's obligations under <u>Sections 8</u>, <u>9</u> and <u>10</u>.

**[Signature Page to Follow]**

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| - 11 - | Initial | ![](sign_001.jpg) |

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed effective as of the date first above set forth.

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| | |
|:---|:---|
| CORPORATION: | CORPORATION: |
| ICANIC BRANDS COMPANY INC. | ICANIC BRANDS COMPANY INC. |
| By: | */s/ Brandon Kou* |
| Name: | Brandon Kou |
| Title: | CEO |

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EXECUTIVE: <br>   <br> Micah Anderson

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| - 12 - | Initial | ![](sign_001.jpg) |

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed effective as of the date first above set forth.

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| |
|:---|
| CORPORATION: |
| ICANIC BRANDS COMPANY INC. |
| By: |
| Name: |
| Title: |

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| |
|:---|
| EXECUTIVE: |
| */s/ Micah Anderson* |
| Micah Anderson |

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- 13 - Initial

**<u>Attachment A</u>**

● 33 Holdings

● Anderson Dev SB

● ADSB Management

● Anderson Dev Holdings SJ

● Anderson Development SJ

● Anderson Development Willits

● Little Ry Holding

● Lower Thomas Road

● LTR Realty

● MPA Farms, Inc

● MPA Legacy Holdings Inc

● Sunset Ridge Road

● Orr Springs Road

● Orr Springs Land Road

● Chula Vista 2

● Willowbrook Realestate

● Willits Retail

● Adere, LLC

● Hilife Group NC, LLC

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| - 14 - | Initial | ![](sign_001.jpg) |

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**LOCK-UP LETTER AGREEMENT**

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| | |
|:---|:---|
| Icanic Brands Company Inc. | April <u>20</u>, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

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Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder oflcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

 

*[Signature page follows.]*

 

 

DATED and effective as of the date set forth above.

---

| | |
|:---|:---|
| **LITTLE RY HOLDINGS** | **LITTLE RY HOLDINGS** |
| By: | */s/ Micah Anderson* |
| Title: | Micah Anderson |
| CEO | CEO |

---

**Appendix A** 

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April <u>20</u>, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder oflcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

 

*[Signature page follows.]*

 

 

DATED and effective as of the date set forth above.

---

| | |
|:---|:---|
| **THE EH TRUST** | **THE EH TRUST** |
| By: | */s/ Emily Heitman* |
| Name: | Emily Heitman |
| Title: | Secretary |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April <u>20</u>, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder oflcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

 

*[Signature page follows.]*

 

 

DATED and effective as of the date set forth above.

---

| | |
|:---|:---|
| **MPA LEGACY HOLDINGS, INC.** | **MPA LEGACY HOLDINGS, INC.** |
| By: | */s/ Micah Anderson* |
| Name: | Micah Anderson |
| Title: | CEO |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April <u>20</u>, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger** **Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder oflcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up** **Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up** **Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

DATED and effective as of the date set forth above.

---

| | |
|:---|:---|
| **PLANTLIFE, LLC** | **PLANTLIFE, LLC** |
| By: | */s/ Brett Colombini* |
| Name: | Brett Colombini |
| Title: | Manager |

---

**Appendix A** 

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April <u>20</u>, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger** **Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder oflcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up** **Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up** **Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

 

DATED and effective as of the date set forth above.

---

| | |
|:---|:---|
| **ROOTS ORIGIN, LLC** | **ROOTS ORIGIN, LLC** |
| By: | */s/ Kelly Mayhugh* |
| Name: | Kelly Mayhugh |
| Title: | Owner |

---

**Appendix A** 

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April <u>20</u>, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger** **Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder oflcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up** **Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up** **Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

 

DATED and effective as of the date set forth above.

---

| | |
|:---|:---|
| **SPAGYRICS, LLC** | **SPAGYRICS, LLC** |
| By: | */s/ Gary Vandenberghe* |
| Name: | Gary Vandenberghe |
| Title: | President |

---

**Appendix A** 

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April <u>20</u>, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger** **Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder oflcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up** **Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up** **Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

 

DATED and effective as of the date set forth above.

 

---

| | | |
|:---|:---|:---|
| */s/ Micah Anderson* | | */s/ Emily Heitman* |
| Signature of Witness |  | Emily Heitman |

---

**Appendix A** 

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April <u>20</u>, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger** **Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder oflcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up** **Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up** **Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

DATED and effective as of the date set forth above.

---

| | | |
|:---|:---|:---|
| */s/ Emily Heitman* | | */s/* Micah Anderson |
| Signature of Witness |  | Micah Anderson |

---

**Appendix A** 

**Lock-Up Period**

The Lock-Up Period is as follows:

i. 16.66% of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18 months following the date hereof;

ii. 16.66% of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21 months following the date hereof;

iii 16.66% of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24 months following the date hereof;

iv. 16.66% of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27 months following the date hereof;

v. 16.66% of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30 months following the date hereof;

vi. 16.66% of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33 months following the date hereof; and

vii. 16.66% of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36 months following the date hereof.

<u>**SECRETARY'S CERTIFICATE**</u>

**April <u>20</u>, 2022**

This certificate is being delivered pursuant to Section 9.2(a) of that certain Merger Agreement (the **"Merger** **Agreement")** dated January 21, 2022 by and among Icanic Brands Company Inc. (the **"Purchaser"),** a company incorporated pursuant to the *Business Corporations Act* (British Columbia), LEEF Holdings, Inc., a Nevada corporation (the **"Company"),** Icanic Merger Sub, Inc., a Nevada corporation, and Micah Anderson, solely in his capacity as representative of the Company Stockholders. All capitalized terms used, but not defined herein, shall have the meaning given to them in the Merger Agreement. The undersigned, being the duly elected and appointed Secretary of the Company, hereby certifies in her capacity as such to the Purchaser, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Attached hereto as <u>Exhibit A</u> is a true and correct copy of the Company's Articles of Incorporation and all amendments and restatements thereto as currently in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Attached hereto as <u>Exhibit B</u> is a true and correct copy of the Company's Bylaws and all amendments and restatements thereto as currently in effect as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Attached hereto as <u>Exhibit C</u> are true, correct and complete copies of the resolutions duly adopted by the Board of Directors of the Company by unanimous written consent on January 21, 2022, relating to the approval of the Merger and the execution, delivery and performance of the Merger Agreement and the transactions contemplated therein and thereby. Such resolutions have not been amended or rescinded and continue in full force and effect on and as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The Company has obtained the Requisite Stockholder Approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The following persons are a duly appointed, qualified and acting officer of the Company, holding the office(s) in the Company as set forth opposite such person's name listed below, and the signature set forth opposite such person's name below is such person's true and genuine signature:

---

| | | |
|:---|:---|:---|
| Name | Office | Signature |
| Micah Anderson | Chief Executive Officer and President | */s/ Micale Anderson* |
| Emily Heitman | Secretary and Treasurer | */s/ Emily Heitman* |

---

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned has executed this Secretary's Certificate as of the date first written above.

---

| | |
|:---|:---|
| By: | */s/ Emily Heitman* |
| Name: | Emily Heitman |
| Title: | Secretary |

---

<u>**EXHIBIT A**</u>

**Articles of Incorporation**

(attached hereto)

![](image_496pg.jpg)

<u>**EXHIBITB**</u>

**Bylaws**

(attached hereto)

**BYLAWS** 

**OF**

**LEEF HOLDINGS, INC.**

**a Nevada corporation**

ARTICLE I

<u>Meetings of</u> <u>Stockholders</u>

Section 1. <u>PLACE OF MEETINGS.</u> All annual meetings of stockholders and all other meetings of stockholders shall be held at any place or places within or without the State of Nevada which may be designated either by the President of the corporation or the Board of Directors, or by the written consent of all stockholders entitled to vote thereat, given either before or after the meeting and filed with the Secretary of the corporation.

Section 2. <u>ANNUAL MEETINGS.</u> The annual meeting of the stockholders for the election of the directors and the transaction of such other business as may properly be brought before the meeting shall be held on the date and at the time designated by the board of directors.

Written notice of each annual meeting signed by the President or Vice President, or the Secretary, or an Assistant Secretary, or by such other person or persons as the Directors shall designate, shall be given to each stockholder entitled to vote thereat either personally or by mail, electronic mail or other means of written or electronic communication, charges prepaid, addressed to such stockholder at his address appearing on the books of the corporation or given by him to the corporation for the purpose of notice. If a stockholder gives no address, notice shall be deemed to have been given him if sent by mail, electronic mail or other means of written or electronic communication addressed to the place where the principal office of the corporation is situated, or if published at least once in some newspaper of general circulation in the county in which said office is located. All such notices shall be sent to each stockholder entitled thereto not less than ten (10) nor more than sixty (60) calendar days before each annual meeting, and shall specify the place, the day and the hour of such meeting.

Section 3. <u>SPECIAL MEETING.</u> Special meetings of the stockholders, for any purpose or purposes whatsoever, may be called at any time by the President, Vice President or by a majority of the Board of Directors, or by one or more stockholders holding a majority in amount of the entire capital stock of the corporation issued and outstanding and entitled to vote. Except in special cases where other express provision is made by statute, notice of such special meetings shall be given in the same manner as for annual meetings of stockholders. Notices of any special meeting shall specify, in addition to the place, day and hour of such meetings the purpose or purposes for which the meeting is called.

Section 4. <u>ADJOURNED MEETINGS</u> <u>AND</u> <u>NOTICE</u> <u>THEREOF.</u> Any stockholders' meeting, annual or special, whether or not a quorum is present, may be adjourned from time to time by the vote of a majority of the shares, the holders of which are either present in person or represented by proxy thereat, but in the absence of a quorum no other business may be transacted at any such meeting.

Other than by announcement at the meeting at which such adjournment is taken, it shall not be necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting. However, when any stockholders' meeting, either annual or special, is adjourned for thirty (30) days or more, notice of the adjourned meeting shall be given as in the case of an original meeting.

Section 5. <u>ENTRY OF NOTICE.</u> Whenever any stockholder entitled to vote has been absent from any meeting of stockholders, whether annual or special, an entry in the minutes to the effect that notice has been duly given shall be conclusive and incontrovertible evidence that due notice of such meeting was given to such stockholders, as required by law and these Bylaws.

Section 6. <u>VOTING.</u> At all meetings of stockholders, every stockholder entitled to vote shall have the right to vote, in person or by proxy, on each matter to come before the meeting, the number of shares standing in his own name on the stock records of the corporation. There shall be no cumulative voting. Such vote may be by voice or by ballot upon demand made by a stockholder at any election and before the voting begins.

Section 7. <u>QUORUM.</u> The presence in person or by proxy of the holders of a majority of the shares entitled to vote at any meeting shall constitute a quorum for the transaction of business. The stockholders present at a duly called or held meeting at which a quorum is present may continue to do business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum.

Section 8. <u>CONSENT OF ABSENTEES.</u> The transactions of any meeting of stockholders, either annual or special, however called and noticed, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present either in person or by proxy, and if, either before or after the meeting, each of the stockholders entitled to vote, not present in person or by proxy, sign a written waiver of notice, or a consent to the holding of such meeting, or an approval of the minutes thereof. All such waivers, consents or approvals shall be filed with the corporate records or made a part of the minutes of the meeting.

Section 9. <u>**PROXIES.**</u> Every person entitled to vote or execute consents shall have the right to do so either in person or by an agent or agents authorized by a written proxy executed by such person or his duly authorized agent and filed with the Secretary of the corporation. However, no such proxy shall be valid after the expiration of six (6) months from the date of its execution, unless the stockholder executing it specifies therein the length of time for which such proxy is to continue in force, which in no case shall exceed seven (7) years from the date of its execution.

Section 10. <u>ACTION WITHOUT A MEETING.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any action which may be taken by the vote of stockholders at a meeting, may be taken without a meeting if authorized by the written consent of stockholders holding at least a majority of the voting power; provided that if any greater proportion of voting power is required for such action at a meeting, then such greater proportion of written consents shall be required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In no instance where action is authorized by written consent need a meeting of stockholders be called or noticed.

Section 11. <u>TELEPHONIC MEETINGS.</u> At any meeting held pursuant to these Bylaws, stockholders may participate by means of a telephone conference or similar method of communication by which all persons participating in the meeting can hear each other. Participation in such a meeting constitutes presence in person at the meeting.

ARTICLE II

<u>Directors</u>

Section 1. <u>POWERS.</u> Subject to the limitations of the Articles of Incorporation, of these Bylaws, of the Stockholders' Agreement of the corporation, dated on or about the date hereof (as amended from time to time, the <u>"Stockholders' Agreement"),</u> and the provisions of the Nevada Revised Statutes as to action to be authorized or approved by the stockholders, and subject to the duties of Directors as prescribed by these Bylaws and the Stockholders' Agreement of the corporation, all corporate powers shall be exercised by or under the authority of, and the business and affairs of the corporation shall be controlled by, the Board of Directors. Without prejudice to such general powers, but subject to the same limitations, it is hereby expressly declared that the Directors shall have the following powers:

First - To select and remove all officers, agents and employees of the corporation, prescribe such powers and duties for them as may not be inconsistent with law, with the Articles of Incorporation, these Bylaws or the Stockholders' Agreement, fix their compensation, and require from them security for faithful service.

Second - To conduct, manage and control the affairs and business of the corporation, and to make such rules and regulations therefor not inconsistent with law, with the Articles of Incorporation, these Bylaws or the Stockholders' Agreement, as they may deem best.

Third - To fix and locate from time to time one or more offices of the corporation within or without the State of Nevada; to designate any place within or without the State of Nevada for the holding of any stockholders' meeting or meetings; and to prescribe the forms of certificates of stock, and to alter the form of such certificates from time to time, as in their judgment they may deem best, provided such certificates shall at all times comply with the provisions of law.

Fourth - To authorize the issuance of shares of stock of the corporation from time to time, upon such terms as may be lawful, in consideration of money paid, labor done or service actually rendered, debts or securities canceled, or tangible or intangible property actually received, or in the case of shares issued as a dividend, against amounts transferred from surplus to stated capital.

Fifth-To borrow money and incur indebtedness for the purpose of the corporation, and to cause to be executed and delivered therefor, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations or other evidence of debt and securities therefor.

Sixth - To appoint an executive committee and other committees, and to delegate to the executive committee any of the powers and authority of the Board in the management of the business and affairs of the corporation. The executive committee shall be composed of one or more Directors.

Section 2. <u>NUMBER AND OUALIFICATION OF DIRECTORS.</u> Initially, the authorized number of Directors of the corporation shall be three (3). The number of Directors may be increased or decreased by a duly adopted resolution of the Board of Directors or the Stockholders to a maximum number of seven (7).

Section 3. <u>ELECTION AND TERM OF OFFICE.</u> All Directors shall be elected at each annual meeting of stockholders, but if any such annual meeting is not held, or the Directors are not selected at such meeting, the Directors may be elected at any special meeting of stockholders. All Directors shall hold office until their respective successors are elected.

Section 4. <u>VACANCIES.</u> Vacancies in the Board of Directors may be filled by a majority of the remaining Directors, though less than a quorum, or by a sole remaining Director, and Directors so elected shall hold office until their successors are elected at an annual or a special meeting of the stockholders.

A vacancy or vacancies in the Board of Directors shall be deemed to exist in case of the death, resignation or removal of any Director, or if the authorized number of Directors be increased, or if the stockholders fail at any annual or special meeting of stockholders at which any Director or Directors are elected to elect the full authorized number of Directors to be voted for at that meeting, or if the original incorporators shall fail to designate the total authorized number of Directors for the initial Board of Directors.

The stockholders may elect a Director or Directors at any time to fill any vacancy or vacancies not filled by the Directors. If the Board of Directors accepts the resignation of a Director tendered to take effect at a future time, the Board of Directors or the stockholders shall have power to elect a successor to take office when the resignation is to become effective.

Section 5. <u>PLACE OF MEETING.</u> Regular meetings of the Board of Directors shall be held at any place within or without the State of Nevada which has been designated from time to time by resolution of the Board or by written consent of all members of the Board. Special meetings of the Board may be held at a place so designated.

Section 6. <u>ANNUAL MEETING.</u> Immediately following each annual meeting of stockholders, the Board of Directors shall hold a regular meeting for the purpose of organization, election of officers, and the transaction of other business. Notice of such meetings is hereby dispensed with.

Section 7. <u>SPECIAL MEETINGS.</u> Special meetings of the Board of Directors for any purpose or purposes may be called at any time by the President, or, if he is absent or unable or refuses to act, by any Vice President or by any three Directors.

Written notice of the time and place of special meetings shall be delivered personally to the Directors or sent to each Director by mail, electronic mail, facsimile machine (if the recipient has a facsimile machine properly connected to a telephone line), a commercially reasonable overnight express service, or other form of written communication, charges prepaid, addressed to him at his address as it is shown upon the records of the corporation, or if it is not so shown on such records or is not readily ascertainable, at the place in which the meetings of the Directors are regularly held. In case the notice is mailed, it shall be deposited in the United States mail at least three days before the meeting. If the notice is sent by an overnight express service, it must be sent at least one day before the meeting. If the notice is personally delivered or sent by electronic mail or facsimile machine, it shall be so delivered at least twenty-four (24) hours before the meeting. Such mailing or delivery as above provided shall be due, legal and personal notice to such Director.

Section 8. <u>NOTICE OF ADJOURNMENT.</u> Notice of the time and place of holding an adjourned meeting shall be given to absent Directors at least twenty-four (24) hours before the adjourned meeting is reconvened.

Section 9. <u>ENTRY OF NOTICE.</u> Whenever any Director has been absent from any special meeting of the Board of Directors, an entry in the minutes to the effect that notice has been duly given shall be conclusive and incontrovertible evidence that due notice of such special meeting was given to such Director, as required by law and these Bylaws.

Section 10. <u>WAIVER OF NOTICE.</u> The transactions of any meeting of the Board of Directors, however called and noticed or wherever held, shall be as valid as though had at a meeting duly held after regular call and notice, if a quorum be present, and if, either before or after the meeting, each of the Directors not present sign a written waiver of notice or a consent to holding such meeting or an approval of the minutes thereof. All such waivers, consents or approvals shall be filed with the corporate records or made a part of the minutes of the meeting.

Section 11. <u>ACTION WITHOUT A MEETING.</u> Any action required or permitted to be taken at a meeting of the Board of Directors or of any committee thereof may be taken without a meeting if a written consent thereto is signed by all the members of the Board or of such committee. Such written consent shall be filed with the minutes of the proceedings of the Board or committee.

Section 12. <u>QUORUM.</u> A majority of the authorized number of Directors shall be necessary to constitute a quorum for the transaction of business, except to adjourn as hereinafter provided. Every act or decision done or made by a majority of the Directors present at a meeting fully held at which a quorum is present shall be regarded as the act of the Board of Directors, unless a greater number be required by law or by the Articles of Incorporation or the Stockholders' Agreement.

Section 13. <u>ADJOURNMENT.</u> A quorum of the Directors may adjourn any Directors' meeting to meet again at a stated day and hour. However, in the absence of a quorum, a majority of the Directors present at any Directors' meeting, either regular or special, may adjourn from time to time until the time fixed for the next regular meeting of the Board.

Section 14. <u>FEES AND COMPENSATION.</u> Directors and members of committees may receive such compensation, if any, for their services, and such reimbursement for expenses, as may be fixed or determined by the Board.

Section 15. <u>REMOVAL.</u> Any Director may be removed from office without cause by the vote of stockholders holding two-thirds of the issued and outstanding stock at a meeting duly called for that purpose at any time.

Section 16. <u>TELEPHONIC MEETINGS.</u> At any meeting held pursuant to these Bylaws, Directors may participate by means of a telephone conference or similar method of communication by which all persons participating in the meeting can hear each other. Participating in such a meeting constitutes presence in person at the meeting.

ARTICLE III

<u>Officers</u>

Section 1. <u>OFFICERS.</u> The officers of the corporation shall be a President, a Secretary and a Treasurer or Chief Financial Officer. The corporation may also have, at the discretion of the Board of Directors, a Chairman of the Board of Directors, one or more Vice Presidents, one or more Assistant Secretaries, one or more Assistant Treasurers, and such other officers as may be appointed in accordance with the provisions of Section 3 of this Article. Officers other than the Chairman of the Board need not be Directors. One person may hold two or more offices.

Section 2. <u>ELECTION.</u> The officers of this corporation, except such officers as may be appointed in accordance with the provisions of Section 3 or Section 5 of this Article, shall be chosen annually by the Board of Directors and each shall hold his office until he shall resign or shall be removed or otherwise disqualified to serve, or his successor shall be elected and qualified.

Section 3. <u>SUBORDINATE OFFICERS, ETC.</u> The Board of Directors may appoint such other officers as the business of the corporation may require, each of whom shall hold office for such period, have such authority and perform such duties as are provided in these Bylaws or as the Board of Directors may from time to time determine.

Section 4. <u>REMOVAL AND RESIGNATION.</u> Any officer may be removed, either with or without cause, by a majority of the Directors at the time in office, at any regular or special meeting of the Board.

Any officer may resign at any time by giving written notice to the Board of Directors or to the President, or to the Secretary of the corporation. Any such resignation shall take effect at the date of the receipt of such notice or at any later time specified therein; and, unless otherwise specified therein, the acceptance of such resignation shall not be necessary to make it effective.

Section 5. <u>VACANCIES.</u> A vacancy in any office because of death, resignation, removal, disqualification or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to such office.

Section 6. <u>CHAIRMAN OF THE BOARD.</u> The Chairman of the Board shall preside at all meetings of the Board of Directors and exercise and perform such other powers and duties as may be from time to time assigned to him by the Board of Directors or prescribed by these Bylaws.

Section 7. <u>PRESIDENT.</u> Subject to such supervisory powers, if any, as may be given by the Board of Directors to the Chairman of the Board, the President shall be the chief executive officer of the corporation and shall, subject to the control of the Board of Directors, have general supervision, direction and control of the business and officers of the corporation. He shall preside at all meetings of the stockholders and in the absence of the Chairman of the Board, at all meetings of the Board of Directors. He shall have the general powers and duties of management usually vested in the office of president of a corporation, and shall have such other powers and duties as may be prescribed by the Board of Directors or by these Bylaws.

Section 8. <u>VICE PRESIDENTS.</u> In the absence or disability of the President, the Vice President or Vice Presidents, if any, in order of their rank as fixed by the Board of Directors, shall perform all the duties of the President, and when so acting shall have all the powers of, and be subject to all the restrictions upon, the President. The Vice Presidents shall have such other powers and perform such other duties as from time to time may be prescribed for them respectively by the Board of Directors or these Bylaws.

Section 9. <u>SECRETARY.</u> The Secretary shall keep, or cause to be kept, a book of minutes at the registered office of all meetings of Directors and stockholders, setting forth the time and place of each meeting, whether the meeting is regular or special, and if special, how authorized, the manner by which notice was given, the names of those present, the number of shares present or represented at stockholders' meetings and the proceedings thereof.

The Secretary shall keep, or cause to be kept, at the registered office in this state, (as described in NRS 78.105) a stock ledger or duplicate stock ledger showing the names of the stockholders, and the number of shares held by each. The Secretary shall also keep at said registered office certified copies of the Articles of Incorporation, these Bylaws and the Stockholders' Agreement, each with all amendments.

The Secretary shall give, or cause to be given, notice of all meetings of the stockholders and of the Board of Directors required by these Bylaws or by law to be given, and shall have such other powers and perform such other duties as may be prescribed by the Board of Directors or these Bylaws.

Section 10. <u>TREASURER/CHIEF FINANCIAL OFFICER.</u> The Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and correct accounts of the properties and business transactions of the corporation, including accounts of its assets, liabilities, receipts, disbursements, gains, losses, capital, surplus and shares. The books of account shall at all times be open to inspection by any Director.

The Treasurer shall deposit all monies and other valuables in the name and to the credit of the corporation with such depositories as may be designated by the Board of Directors. He shall disburse the funds of the corporation as may be ordered by the Board of Directors, shall render to the President and Directors, whenever they request it, an account of all of his transactions as such an officer and of the financial condition of the corporation, and shall have such other powers and perform such other duties as may be prescribed by the Board of Directors or these Bylaws.

ARTICLE IV

<u>Assessment of Shares</u>

The stock of the corporation, after the amount of the subscription price has been paid, in money, property or services, as the Directors shall determine, shall not be subject to any assessment to pay the debts of the corporation, nor for any other purpose, and no stock issued as fully paid shall ever be assessable or assessed, and these Bylaws shall not be amended in this particular.

ARTICLE V

<u>Preemptive Rights</u>

The shareholders of the Corporation shall not be entitled to preemptive or preferential rights, as such rights are defined by law, other than to the extent, if any, the Board of Directors, in its discretion may determine from time to time, including any such preemptive or preferential rights set forth in the Stockholders' Agreement.

ARTICLE VI

<u>Perpetual. Existence</u>

This Corporation shall have perpetual existence.

ARTICLE VII

<u>Miscellaneous</u>

Section 1. <u>RECORD DATE AND CLOSING STOCK BOOKS.</u> The Board of Directors may fix a time in the future, not exceeding sixty (60) days before the date of any meeting of stockholders, and not exceeding thirty (30) days before the date fixed for the payment of any dividend or distribution or for the allotment of rights, or when any change or conversion or exchange of shares shall go into effect, as a record date for the determination of the stockholders entitled to notice of and to vote at any such meeting, or entitled to receive any such dividend or distribution, or any such allotment of rights, or to exercise the rights in respect to any such change, conversion or exchange of shares. Only stockholders of record on the date so fixed shall be entitled to notice of and to vote at such meetings, or to receive such dividend, distribution or allotment of rights, or to exercise such rights, as the case may be, notwithstanding any transfer of any shares on the books of the corporation after any record date. The Board of Directors may close the books of the corporation against transfers of shares during the whole or any part of any such period.

Section 2. <u>INSPECTION OF CORPORATE RECORDS.</u> Stockholders shall have the right to inspect such corporate records at such times and based upon such limitations of such rights as may be set forth in the Nevada Revised Statutes Chapter 78 from time to time.

Section 3. <u>CHECKS. DRAFTS. ETC.</u> All checks, drafts or other orders for payment of money, notes or other evidences of indebtedness, issued in the name of or payable to the corporation, shall be signed or endorsed by such person or persons and in such manner as, from time to time, shall be determined by resolution of the Board of Directors.

Section 4. <u>ANNUAL REPORT.</u> The Board of Directors of the corporation may cause an annual report to be made available to the stockholders not later than one hundred twenty (120) days after the close of the fiscal or calendar year.

Section 5. <u>CONTRACTS, ETC., HOW EXECUTED.</u> The Board of Directors, except as in these Bylaws otherwise provided, may authorize any officer or officers, agent or agents to enter into any contract, deed or lease or execute any instrument in the name of and on behalf of the corporation, and such authority may be general or confined to specific instances. Unless so authorized by the Board of Directors, no officer, agent or employee shall have any power or authority to bind the corporation by any contract or engagement or to pledge its credit to render it liable for any purpose or to any amount.

Section 6. <u>CERTIFICATES OF STOCK.</u> A certificate or certificates for shares of the capital stock of the corporation shall be issued to each stockholder when any such shares are fully paid up. All such certificates shall be signed by the President or a Vice President and the Secretary or an Assistant Secretary, or be authenticated by facsimiles of the signatures of the President and the written signature of the Secretary or an Assistant Secretary. Every certificate authenticated by a facsimile of a signature must be countersigned by a transfer agent or transfer clerk and a registrar.

Certificates for shares may be issued before full payment under such restrictions and for such purposes as the Board of Directors or these Bylaws may provide. However, any such certificate so issued before full payment shall state the amount remaining unpaid and the terms of payment thereof.

Section 7. <u>REPRESENTATION OF SHARES OF OTHER CORPORATIONS.</u> The President or any Vice President and the Secretary or Assistant Secretary of this corporation are authorized to vote, represent and exercise on behalf of this corporation all rights incident to any and all shares of any other corporation or corporations standing in the name of this corporation. The authority herein granted to said officers to vote or represent on behalf of this corporation any and all shares held by this corporation in any other corporation or corporations may be exercised either by such officers in person or by any person authorized so to do by proxy or power of attorney duly executed by said officers.

Section 8. <u>INSPECTION OF BYLAWS.</u> The corporation shall keep in its registered office the original or a copy of these Bylaws as amended or otherwise altered to date, certified by the Secretary, which shall be open to inspection by the stockholders at all reasonable times during office hours.

Section 9. <u>CONFLICT WITH STOCKHOLDERS' AGREEMENT.</u> In the event of a conflict between these Bylaws and the Stockholders Agreement, the provisions of the Stockholders' Agreement shall control.

ARTICLE VIII

<u>Amendments</u>

Section 1. <u>POWER OF STOCKHOLDERS.</u> New Bylaws may be adopted or these Bylaws may be amended or repealed by the vote of stockholders entitled to exercise a majority of the voting power of the corporation or by the written assent of such stockholders.

Section 2. <u>POWER OF DIRECTORS.</u> Subject to the right of stockholders as provided in Section 1 of this Article VIII to adopt, amend or repeal Bylaws, Bylaws may be adopted, amended or repealed by the Board of Directors.

ARTICLE IX

<u>Indemnification</u>

Section 1. <u>INDEMNIFICATION IN THIRD PARTY ACTIONS.</u> The corporation shall, to the extent permitted by the Act, indemnify any person who is or was a director, officer, employee, or agent of the corporation or is or was serving at the corporation's request as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other entity (each such person, an <u>"Indemnitee")</u> against expenses, including attorneys' fees, judgments, fines, and amounts paid in settlement, actually and reasonably incurred by the Indemnitee in connection with any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, other than a proceeding by or in the right of the corporation, to which the Indemnitee is, was, or is threatened to be made a party by reason of being an Indemnitee, if the Indemnitee either:

Did not breach, through intentional misconduct, fraud, or a knowing violation of law, the Indemnitee's fiduciary duties as a director or officer to act in good faith and in the interests of the corporation; or

Acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceeding, had no reasonable cause to believe the Indemnitee's conduct was unlawful.

Section 2. <u>INDEMNIFICATION IN ACTIONS BY OR ON BEHALF OF THE CORPORATION.</u> The corporation shall, to the extent permitted by the Act, indemnify any Indemnitee against expenses, including attorneys' fees and amounts paid in settlement, actually and reasonably incurred by the Indemnitee in connection with any threatened, pending, or completed suit or action by or in the right of the corporation to which the Indemnitee is, was, or is threatened to be made a party by reason of being an Indemnitee, if the Indemnitee either:

Did not breach, through intentional misconduct, fraud, or a knowing violation of law, the Indemnitee's fiduciary duties as a director or officer to act in good faith and in the interests of the corporation; or

Acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the corporation.

Section 3. <u>INDEMNIFICATION AGAINST EXPENSES.</u> The corporation shall, to the extent permitted by the Act, indemnify any Indemnitee who was successful, on the merits or otherwise, in the defense of any action, suit, proceeding, or claim described in Sections 1 and 2 above, against expenses (including attorneys' fees) actually and reasonably incurred by the Indemnitee in connection with the defense. To the fullest extent permitted by law, the corporation will periodically advance expenses an Indemnitee incurs in defending any claim or proceeding subject to this Article IX before the final disposition of the claim or proceeding, upon receipt by the corporation of a written undertaking by the Indemnitee to repay the expenses advanced if the criteria for indemnification under this Article IX have not been satisfied.

Section 4. <u>NON-EXCLUSIVITY OF INDEMNIFICATION RIGHTS.</u> The rights of indemnification set out in this Article IX shall be in addition to and not exclusive of any other rights to which any Indemnitee may be entitled under the Articles of Incorporation, Bylaws, any other agreement with the corporation, any action taken by the disinterested directors or stockholders of the corporation, or otherwise. The indemnification provided under this Article IX shall inure to the benefit of the heirs, executors, and administrators of an Indemnitee.

<u>**EXHIBIT C**</u>

**Board Resolutions**

**WHEREAS,** the Board has fully reviewed and considered the price, terms and conditions of the proposed business combination with Icanic Brands Company Inc., a company incorporated pursuant to the *Business Corporations Act* (British Columbia) ***("Parent'),*** proposed to be effected pursuant to a Merger Agreement by and among the Company, Parent, Icanic Merger Sub, Inc., a Nevada corporation and wholly-owned subsidiary of Parent ***("Merger Sub"),*** and the Stockholders Representative (as defined therein, the ***"Representative"),*** including all exhibits and schedules attached thereto, in substantially the form attached hereto as <u>Exhibit A</u> (the ***"Merger Agreement'),*** pursuant to which the Company will be merged with and into Merger Sub, with the Company surviving as a wholly-owned subsidiary of Parent (such combination of transactions, the ***"Transaction");***

 ****

**WHEREAS,** in connection with the Merger Agreement, the Board has considered all of the Company Ancillary Agreements (as defined in the Merger Agreement) referenced in the Merger Agreement attached thereto as exhibits (the ***"Ancillary Agreements");***

 ****

**WHEREAS,** in making its determination to recommend the Merger Agreement and Transaction to the stockholders of the Company (the ***"Stockholders"),*** the Board considered, among other things, the following factors: (i) the consideration to be received by the Stockholders in the Transaction; (ii) the Company's prospects if it were to remain independent; (iii) the financial condition, results of operations and business and strategic objectives of the Company on both an historical and prospective basis, and current industry, economic and market conditions; (iv) the possible strategic growth opportunities that might be available to the Company absent the Transaction, and the belief, based on the review of such opportunities, that the Stockholders would benefit most from the potential Transaction; (v) the alternatives available to the Company, including the likelihood that the Company would be able to negotiate and consummate a transaction with another party; (vi) the strategic fit of the Company's business with that of Parent and its affiliates; (vii) the relative certainty associated with consummating a transaction with Parent; and (viii) the terms of the Merger Agreement, including the parties' representations warranties and covenants and the conditions to their respective obligations; and

**WHEREAS,** the Board has determined the following: (i) the Merger Agreement and the Transaction is advisable, fair and in the best interests of the Company and its Stockholders; (ii) it is advisable and in the best interests of the Company and the Stockholders to enter into definitive agreements with respect to the Merger and the other transactions contemplated by the Merger Agreement (including, without limitation, the Merger Agreement and the Company Ancillary Agreements to which the Company is a party); and (iii) it is advisable and in the best interests of the Company and the Stockholders that the Company take all such additional actions, including the actions set forth below, in connection with and in furtherance of the Merger and the other transactions contemplated by the Merger Agreement and Transaction.

**NOW, THEREFORE, BE IT RESOLVED,** that the Board hereby determines that the Merger Agreement and the Transaction (and the consideration to be paid to the Stockholders with respect thereto) are fair to, and in the best interests of, the Company and its Stockholders, and that the execution, delivery and performance of the Merger Agreement, the Ancillary Agreements and all other transactions, agreements, certificates, documents, exhibits and schedules contemplated thereby or related thereto (collectively, the***"Transaction Documents"),*** are advisable and in the best interests of the Company and its Stockholders, and are hereby approved and adopted in all respects;

**RESOLVED FURTHER,** that the officers of the Company be, and each of them hereby is, authorized, directed and empowered to finalize negotiations with Parent and Merger Sub regarding the Transaction and the Transaction Documents and execute, deliver and perform the Transaction Documents to which the Company is a party in substantially the forms attached hereto or otherwise presented to the Board together with such changes, modifications or amendments thereto as any officer of the Company may approve, after consultation with the Company's counsel, and their execution and delivery thereof to be conclusive evidence of such approval as so executed and delivered and as may be changed, modified or amended;

**RESOLVED FURTHER,** that the Board hereby directs that the Transaction, the Transaction Documents and the transactions contemplated thereby be submitted to the Stockholders of the Company for approval and unanimously recommends that the Stockholders approve and adopt the Transaction, the Transaction Documents and the transactions contemplated thereby;

**RESOLVED FURTHER,** that the officers of the Company be, and each of them hereby is, authorized, directed and empowered to: (i) prepare, execute and deliver an information statement to the Stockholders of the Company that sets forth the material terms, conditions and other information regarding the Transaction Documents and the Transaction contemplated thereby; and (ii) generally take any and all actions necessary or advisable to solicit written consents and/or waivers of dissenters' rights from the Stockholders in connection with the approval and adoption of the Transaction Documents;

**RESOLVED FURTHER,** that the officers of the Company be, and each of them hereby is, authorized, directed and empowered to cause to be prepared and delivered on behalf of the Company to the Stockholders any other notices, agreements, certificates or other documents deemed necessary or advisable by the officers of the Company in connection with the approval and adoption of the Transaction Documents by the Company's Stockholders;

**RESOLVED FURTHER,** that, subject to obtaining the requisite consent of the Stockholders, the officers of the Company be, and each of them hereby is, authorized, directed and empowered to take all actions and to execute such documents as they may deem necessary or advisable in order to carry out the purposes of the foregoing resolutions and consummate the proposed Transaction and other transactions contemplated by the Transaction Documents, including the filing of a Articles of Merger with the Secretary of State of the State of Nevada in accordance with the NRS; and

**RESOLVED FURTHER,** that all acts and deeds heretofore done or actions taken by any officer of the Company in entering into, executing, acknowledging or attesting any arrangements, agreements, instruments or documents in carrying out the terms and intentions of the foregoing resolutions are hereby ratified, confirmed and approved in all respects.

<u>**APPROVAL OF ANCILLARY AGREEMENTS**</u>

**WHEREAS,** in connection with the Merger Agreement, it is proposed that the Company enter into that certain (i) Conditional Purchase Agreement, in substantially the form attached hereto as <u>Exhibit B</u> (the***"Option Agreement'),*** and (ii) Escrow Agreement, in substantially the form attached hereto as Exhibit C (the ***"Escrow Agreement',*** and together with the Option Agreement, the ***"Side Agreements");*** and

**WHEREAS,** the Board has determined (i) that the Side Agreements are advisable, fair and in the best interests of the Company and its Stockholders; (ii) that it is advisable and in the best interests of the Company and the Stockholders to enter into the Side Agreements; and (iii) to authorized the execution, delivery and performance thereof.

**NOW, THEREFORE, BE IT RESOLVED,** that the Board hereby determines that the Side Agreements are advisable, fair to, and in the best interests of, the Company and its Stockholders, and that the execution, delivery and performance of the Side Agreements and all other transactions, agreements, certificates, documents, exhibits and schedules contemplated thereby or related thereto, are advisable and in the best interests of the Company and its Stockholders, and are hereby approved and adopted in all respects;

**RESOLVED FURTHER,** that the officers of the Company be, and each of them hereby is, authorized, directed and empowered to execute, deliver and perform the Side Agreements, in substantially the forms attached hereto or otherwise presented to the Board together with such changes, modifications or amendments thereto as any officer of the Company may approve, after consultation with the Company's counsel, and their execution and delivery thereof to be conclusive evidence of such approval as so executed and delivered and as may be changed, modified or amended;

**RESOLVED FURTHER,** that, the officers of the Company be, and each of them hereby is, authorized, directed and empowered to take all actions and to execute such documents as they may deem necessary or advisable in order to carry out the purposes of the foregoing resolutions; and

**RESOLVED FURTHER,** that all acts and deeds heretofore done or actions taken by any officer of the Company in entering into, executing, acknowledging or attesting any arrangements, agreements, instruments or documents in carrying out the terms and intentions of the foregoing resolutions are hereby ratified, confirmed and approved in all respects

**<u>APPOINTMENT OF REPRESENTATIVE</u>**

**WHEREAS,** under the terms of the Merger Agreement, Micah Anderson shall act on behalf of the Company Stockholders (as defined in the Merger Agreement) as the Representative.

**NOW, THEREFORE, BE IT RESOLVED,** that the appointment of Micah Anderson as the Representative to act on behalf of the Company Stockholders in accordance with the terms, provisions and powers set forth in the Merger Agreement be, and hereby is, acknowledged, ratified and approved.

<u>**SIZE OF BOARD OF DIRECTORS**</u>

**WHEREAS,** pursuant to the terms of the Merger Agreement, upon the Effective Time (as defined in the Merger Agreement) of the Merger, the total number of directors that shall constitute the entire Board is to be fixed at two (2) directors; and

**WHEREAS,** upon the Effective Time, all of the Company's existing directors other than Micah Anderson and Emily Heitman shall resign as directors.

**NOW, THEREFORE, BE IT RESOLVED,** that effective immediately upon the Effective Time, the number of directors that shall constitute the entire Board be, and hereby is, fixed at two (2) directors; and

**RESOLVED FURTHER,** that effective immediately upon the Effective Time, the resignations of all directors of the Company other than Micah Anderson and Emily Heitman be, and hereby are, accepted.

**<u>APPOINTMENT OF OFFICERS</u>**

**WHEREAS,** the Board desires to appoint and confirm the officers of the Company as of the Effective Time of the Merger.

**NOW, THEREFORE, BE IT RESOLVED,** that effective immediately upon the Effective Time, the following individuals be, and hereby are, appointed and confirmed as the officers of the Company to the offices set forth besides their respective name, to hold such office at the pleasure of the Board and until their earlier death, resignation or removal:

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| | |
|:---|:---|
| **Name** | **Title** |
| Micah Anderson | Chief Executive Officer and President |
| Emily Heitman | Chief Operating Officer |

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<u>**GENERAL AUTHORIZATION**</u>

**RESOLVED,** that the officers of the Company be, and each of them hereby is, authorized, directed and empowered, for and on behalf of the Company, to execute all documents and take such further action, as they may deem necessary, appropriate or advisable to effect the purposes of each of the foregoing preambles and resolutions; and

**RESOLVED FURTHER,** that any and all actions heretofore taken by any officer of the Company in connection with the carrying out of the actions contemplated by these resolutions are hereby ratified, adopted, approved and confirmed in all respects as authorized acts in the name and on behalf of the Company and the Stockholders.

\*\*\* End Exhibit C \*\*\*

<u>**COMPLIANCE CERTIFICATE**</u>

**April <u>20</u> , 2022**

This certificate is being delivered pursuant to Section 9.2(b) of that certain Merger Agreement (the **"Merger Agreement")** dated January 21, 2022 by and among Icanic Brands Company Inc. (the **"Purchaser"),** a company incorporated pursuant to the *Business Corporations Act* (British Columbia), LEEF Holdings, Inc., a Nevada corporation (the **"Company"),** Icanic Merger Sub, Inc., a Nevada corporation, and Micah Anderson, solely in his capacity as representative of the Company Stockholders. All capitalized terms used, but not defined herein, shall have the meaning given to them in the Merger Agreement. The undersigned, being the duly elected and appointed Chief Executive Officer and President of the Company, hereby certifies in his capacity as such to the Purchaser, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** The
 Company Fundamental Representations are true and correct in all respects as of the date of
 the Merger Agreement and as of the Closing Date, except to the extent that such representation
 and warranty expressly speaks as of an earlier date, in which case such representation and
 warranty is true and correct as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 representations and warranties made by the Company in the Merger Agreement that are qualified
 by materiality or the expression "Material Adverse Effect" are true and correct
 as of the date of the Merger Agreement and as of the Closing Date, except to the extent that
 such representation and warranty expressly speaks as of an earlier date, in which case such
 representation and warranty is true and correct as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. All
 other representations and warranties of the Company in the Merger Agreement (other than those
 described in paragraphs 1 and 2 above) are true and correct in all material respects as of
 the date of the Merger Agreement and as of the Closing Date, except to the extent that such
 representation and warranty expressly speaks as of an earlier date, in which case such representation
 and warranty is true and correct as of such earlier date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 Company has performed, fulfilled or complied with, in all material respects, all of its obligations,
 covenants and agreements contained in the Merger Agreement and in any Ancillary Agreement
 to be fulfilled or complied with by the Company at or prior to the Closing Date.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of the date first written above.

---

| | |
|:---|:---|
| By: | */s/ Micah Anderson* |
| Name: | Micah Anderson |
| Title: | Chief Executive Officer |

---

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<u>**WAIVER OF CONDITION**</u>

---

| | |
|:---|:---|
| TO: | Icanic Brands Company Inc. **("Icanic")** |
| RE: | Merger Agreement dated January 21, 2022 (the **"Merger Agreement")** among Icanic, Icanic Merger Sub, Inc. and Leef Holdings, Inc. **("Leef').** |

---

Leef hereby confirms and acknowledges to Icanic that the condition in Section 8.2(1) under the heading "Conditions for the Benefit of the Company" in the Merger Agreement with respect to Icanic's Cash being equal to or exceeding the Minimum Cash Balance, for the benefit of Leef, has been waived by Leef and will continue to be waived as at the Effective Time, subject to and on the condition that Icanic's cash balance at the Effective Time is equal to approximately US$2.5 million and Icanic certifies the same as a part of the officer's certificate being delivered to Leef pursuant to Section 9.3(k) of the Merger Agreement.

Capitalized terms not otherwise defined herein have the respective meanings given to them in the Merger Agreement.

DATED this <u>20</u> day of April, 2022.

---

| | |
|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| Per | */s/ Micah Anderson* |
|  | Micah Anderson |
|  | Chief Executive Officer |

---

**FORM 10**

**NOTICE OF PROPOSED SIGNIFICANT TRANSACTION (not involving**

**<u>an issuance or potential issuance of a listed security)</u><sup>1</sup>**

Name of Listed Issuer: <u>Icanic Brands Company Inc.</u> (the "Issuer").

Trading Symbol: <u>ICAN</u> 

Issued and Outstanding Securities of the Issuer Prior to Transaction: <u>238,235,947</u> 

Date of News Release Fully Disclosing the Transaction: <u>January 25, 2022</u> 

**1.** **Transaction** 

1. Provide
 details of the transaction including the date, description and location of assets, if applicable,
 parties to and type of agreement (eg: sale, option, license, contract for Investor Relations
 Activities etc.) and relationship to the Issuer. The disclosure should be sufficiently complete
 to enable a reader to appreciate the significance of the transaction without reference to
 any other material:

<u>On January 21, 2022, the Issuer entered into a Merger Agreement (the "Merger Agreement") with LEEF Holdings, Inc. ("LEEF"), Icanic Merger Sub, Inc. ("Subco") and Micah Anderson, solely in his capacity as representative of LEFF stockholders ("LEFF Stockholders Representative"), pursuant to which the Issuer will acquire all the issued and outstanding shares of common stock of LEEF (the "Acquisition") whereby LEEF will complete a statutory triangular merger under the *Nevada Revised Statutes* with Subco.</u>

2. Provide
 the following information in relation to the total consideration for the transaction (including
 details of all cash, non-convertible debt securities or other consideration) and any required
 work commitments:

<u>The purchase price (the "Purchase Price") will be comprised of (i) the Closing Purchase Price (as defined below) and (ii) earn-out payments, tied to achieving certain revenue targets following the completion of the Acquisition (the "Earn-Out Payments").</u> 

<sup>1</sup> If the transaction involved the issuance of securities, other than debt securities that are not convertible into listed securities, use Form 9<u>.</u>

**FORM 10 - NOTICE OF PROPOSED**<br>**SIGNIFICANT TRANSACTION**<br>January 2015<br>Page 1<br>

<u>The initial payment forming part of the Purchase Price (the "Closing Purchase Price") will be equal to the higher of (i) US$120,000,000 or (i) two times the trailing 12-months revenue of LEEF (the "TTM Revenue") for the period ended September 30, 2021. The Closing Purchase Price will be satisfied in full through the issuance of common shares of the Issuer (the "Icanic Shares"), at an issue price per share equal to the 30-day volume-weighted average trading price of the Icanic Shares on the Canadian Securities Exchange (the "CSE") for the period ending on the business day prior to the closing of the Acquisition (the "Closing").</u>

The Earn-Out Payments are comprised of the following:

● 15 months following Closing, an amount equal to 10% of (A) the product equal to two times the TTM Revenue calculated for the 12- month period immediately following Closing minus (B) the Closing Purchase Price (the "**First Earn-Out Payment** ");

● 27 months following Closing, an amount equal to 10% of (A) the product equal to two times the TTM Revenue calculated for the 12- month period immediately following the first anniversary of the Closing minus (B) the Closing Purchase Price minus (C) any amounts paid pursuant to the First Earn-Out Payment (the "**Second Earn-Out Payment** "); and

● 39 months following Closing, an amount equal to 10% of (A) the product equal to two times the TTM Revenue calculated for the 12- month period immediately following the second anniversary of the Closing minus (B) the Closing Purchase Price minus (C) any amounts paid pursuant to the First Earn-Out Payment minus (D) any amounts paid pursuant to the Second Earn-Out Payment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Total
 aggregate consideration in Canadian dollars: <u>see above</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Cash: <u>see above .</u> 

Other: <u>see above</u> .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Work
 commitments: <u>N/A</u>.

3. State
 how the purchase or sale price and the terms of any agreement were determined (e.g. arm's-length
 negotiation, independent committee of the Board, third party valuation etc).

<u>The purchase price and the other terms as set forth in the Merger Agreement were determined through arm's length negotiation between the parties.</u>

**FORM 10 - NOTICE OF PROPOSED**<br>**SIGNIFICANT TRANSACTION**<br>January 2015<br>Page 2<br>

4. Provide
 details of any appraisal or valuation of the subject of the transaction known to management
 of the Issuer: <u>N/A</u>.

5. If
 the transaction is an acquisition, details of the steps taken by the Issuer to ensure that
 the vendor has good title to the assets being acquired:

<u>The Issuer, with assistance of legal counsel, completed a due diligence review in respect of LEFF and its books and records. The Merger Agreement also contains customary representations and warranties for a transaction of this nature.</u>

6. Provide
 the following information for any agent's fee, commission, bonus or finder's
 fee, or other compensation paid or to be paid in connection with the transaction (including
 warrants, options, etc.): <u>N/A</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Details
 of any dealer, agent, broker or other person receiving compensation in connection with the
 transaction (name, address. If a corporation, identify persons owning or exercising voting
 control over 20% or more of the voting shares if known to the Issuer): <u> </u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Cash <u> </u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Other <u> </u>.

7. State
 whether the vendor, sales agent, broker or other person receiving compensation in connection
 with the transaction is a Related Person or has any other relationship with the Issuer and
 provide details of the relationship.

<u>N/A</u> 

8. If
 applicable, indicate whether the transaction is the acquisition of an interest in property
 contiguous to or otherwise related to any other asset acquired in the last 12 months. <u>N/A</u>.

**2.** **Development** 

Provide details of the development. The disclosure should be sufficiently complete to enable a reader to appreciate the significance of the transaction without reference to any other material:

<u>N/A.</u>

**FORM 10 - NOTICE OF PROPOSED**<br>**SIGNIFICANT TRANSACTION**<br>January 2015<br>Page 3<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Certificate Of Compliance** 

The undersigned hereby certifies that:

1. The
 undersigned is a director and/or senior officer of the Issuer and has been duly authorized
 by a resolution of the board of directors of the Issuer to sign this Certificate of Compliance.

2. To
 the knowledge of the Issuer, at the time an agreement in principle was reached, no party
 to the transaction had knowledge of any undisclosed material information relating to the
 Issuer, other than in relation to the transaction.

3. As
 of the date hereof there is no material information concerning the Issuer which has not been
 publicly disclosed.

4. The
 undersigned hereby certifies to the Exchange that the Issuer is in compliance with the requirements
 of applicable securities legislation (as such term is defined in National Instrument 14-101)
 and all Exchange Requirements (as defined in CNSX Policy 1).

5. All
 of the information in this Form 10 Notice of Proposed Significant Transaction is true.

---

| | | |
|:---|:---|:---|
| Dated | January 31, 2022. |  |
|  |  | Brandon Kou |
|  |  | Name of Director or Senior Officer |
| | | */s Brandon Kou* |
|  |  | Signature |
|  |  | Chief Executive Officer |
|  |  | Official Capacity |

---

**FORM 10 - NOTICE OF PROPOSED**<br>**SIGNIFICANT TRANSACTION**<br>January 2015<br>Page 4<br>

**Form 51–102F3**

**MATERIAL CHANGE REPORT**

**Item 1.** **Name and Address of Company**

Icanic Brands Company Inc. (the "**Company**" or "**Icanic**")

789 West Pender Street, Suite 810

Vancouver, BC V6C 1H2

**Item 2.** **Date of Material Change**

January 21, 2022

**Item 3.** **News Release**

News Release dated January 25, 2022 were disseminated via GlobeNewswire and subsequently filed on SEDAR.

**Item 4.** **Summary of Material Change**

The Company announced a definitive agreement to acquire 100% of LEEF Holdings, Inc. ("**LEEF**")

**Item 5.** **Full Description of Material Change**

**5.1** **Full Description of Material Change** 

The Company announced that it has entered into a definitive agreement (the "**Agreement**") with LEEF, a California based extractions company (the "**Acquisition**").

Under the terms of the Agreement, the Company will acquire all the issued and outstanding shares of common stock of LEEF whereby LEEF will complete a statutory triangular merger under the *Nevada Revised Statutes* with a wholly-owned subsidiary of the Company. The purchase price (the "**Purchase Price**") will be comprised of (i) the Closing Purchase Price (as defined below) and (ii) earn-out payments, tied to achieving certain revenue targets following the completion of the Acquisition (the "**Earn-Out Payments**").

The initial payment forming part of the Purchase Price (the "**Closing Purchase Price**") will be equal to the higher of (i) US$120,000,000 or (i) two times the trailing 12-months revenue of LEEF (the "**TTM Revenue**") for the period ended September 30, 2021. The Closing Purchase Price will be satisfied in full through the issuance of common shares of the Company (the "**Icanic Shares**"), at an issue price per share equal to the 30-day volume-weighted average trading price of the Icanic Shares on the Canadian Securities Exchange for the period ending on the business day prior to the closing of the Acquisition (the "**Closing**").

The Earn-Out Payments are comprised of the following:

&nbsp;&nbsp;&nbsp;&nbsp;a. 15
 months following Closing, an amount equal to 10% of (A) the product equal to two times the
 TTM Revenue calculated for the 12-month period immediately following Closing minus (B) the
 Closing Purchase Price (the "**First Earn-Out Payment** ");

&nbsp;&nbsp;&nbsp;&nbsp;b. 27
 months following Closing, an amount equal to 10% of (A) the product equal to two times the TTM
 Revenue calculated for the 12-month period immediately following the first anniversary of
 the Closing minus (B) the Closing Purchase Price minus (C) any amounts paid pursuant to the
 First Earn-Out Payment (the "**Second Earn-Out Payment** "); and

&nbsp;&nbsp;&nbsp;&nbsp;c. 39
 months following Closing, an amount equal to 10% of (A) the product equal to two times the
 TTM Revenue calculated for the 12-month period immediately following the second anniversary
 of the Closing minus (B) the Closing Purchase Price minus (C) any amounts paid pursuant to
 the First Earn-Out Payment minus (D) any amounts paid pursuant to the Second Earn-Out Payment.

The Acquisition is anticipated to be completed during Q1 2022 and is subject to customary closing conditions, regulatory approvals and the approval of LEEF shareholders.

**5.2** **Disclosure for Restructuring Transactions** 

Not applicable.

**Item 6.** **Reliance on subsection 7.1(2) of National Instrument 51–102**

Not applicable.

**Item 7.** **Omitted Information**

None.

**Item 8.** **Executive Officers**

Brandon Kou

Chief Executive Officer

Tel: 604-687-2038

**Item 9.** **Date of Report**

January 31, 2022

**Forward Looking Information**

This material change report contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws (collectively, "forward- looking information"). Forward-looking information are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information in this material change report includes, without limitation, statements relating to the completion of the Acquisition on the terms described herein, or at all, the receipt of all requisite approvals to complete the Acquisition, the closing date of the Acquisition and the payment of the Earn-Out Payments. Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to the ability of the Company to execute its business plan, the continued growth of the medical and/or recreational cannabis markets in the countries in which the Company operates or intends to operate and LEEF maintaining its existing cannabis licenses. The Company considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those expressed or implied in the forward-looking information. Such risks include, without limitation: the failure to obtain all necessary approvals related to the Acquisition, the ability of the Company to complete the Acquisition in a timely manner or at all; the ability of the Company to integrate the LEEF business into its existing operations and to realize the expected benefits and synergies of the acquisition; unexpected disruptions to the operations and businesses of the Company and/or LEEF as a result of the COVID-19 global pandemic or other disease outbreaks including a resurgence in the cases of COVID-19; engaging in activities considered illegal under United States federal law; the ability of the Company to comply with applicable government regulations in a highly regulated industry; unexpected changes in governmental policies and regulations affecting the production, distribution, manufacture or use of cannabis in the United States, or any other foreign jurisdictions in which the Company intends to operate; unexpected changes in governmental policies and regulations affecting the production, distribution, manufacture or use of adult-use recreational cannabis in the United States or Canada; any change in accounting practices or treatment affecting the consolidation of financial results; any unexpected failure of LEEF to renew its licenses and permits; any unexpected failure of LEEF to maintain any of its commercial facilities; the Company's reliance on management; inconsistent public opinion and perception regarding the use of cannabis; perceived effects of medical cannabis products; adverse market conditions; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; costs of inputs; crop failures; litigation; currency fluctuations; competition; availability of capital and financing on acceptable terms; industry consolidation; loss of key management and/or employees; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. For more information on the Company and the risks and challenges of their businesses, investors should review their filings that are available at www.sedar.com.

April 20, 2022

**PRIVATE AND CONFIDENTIAL**

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia, V6C 1H2

Dear Sirs:

---

| | |
|:---|:---|
| **Re:** | **Merger Agreement between Icanic Brands Company, Inc. (the "Company"), Icanic Merger Sub, Inc. and LEEF Holdings, Inc. ("LEEF") dated January 21, 2022 (the "Merger Agreement")** |

---

This letter (the "**Disclosure Letter**"), as required by Section 7.10 of the Merger Agreement, updates the disclosure letter dated January 21, 2022 that was delivered to LEEF by the Company. The purpose of this Disclosure Letter is to set forth, in writing, certain additional disclosures, exceptions and exclusions contemplated or permitted by the Merger Agreement. Any capitalized terms used herein but not defined in this Disclosure Letter shall have the respective meanings attributed to such terms in the Merger Agreement.

Before dealing in detail with the various representations and warranties of the Company set out in the Merger Agreement, the Company makes the following general disclosures:

&nbsp;&nbsp;&nbsp;&nbsp;(a) any
 information contained or referred to in this Disclosure Letter is to be treated as a disclosure
 by the Company to LEEF or the agreement of the Parties with respect to the matters disclosed
 herein, as the case may be, in respect of each and every covenant, representation, warranty,
 term and condition contained in the Merger Agreement to which such information may reasonably
 be regarded as being relevant (regardless of the section number references set forth below)
 and not solely in respect of any particular representation, warranty, covenant or condition
 contained in the Merger Agreement, provided that the relevance of the information so disclosed
 for any other section of the Merger Agreement or this Disclosure Letter is reasonably apparent
 on the face of such disclosure.

&nbsp;&nbsp;&nbsp;&nbsp;(b) where
 any statement contained in the text of this Disclosure Letter is in conflict with any information
 contained in any of the documents provided to the Company and it is reasonable to assume
 that the Company would have been misled thereby, the statement contained in the text of this
 Disclosure Letter shall prevail over the information contained in the relevant document;

&nbsp;&nbsp;&nbsp;&nbsp;(c) no
 reference to or disclosure of any item or other matter in this Disclosure Letter shall be
 construed as an admission or indication that such item or other matter is material, unless
 expressly stated;

&nbsp;&nbsp;&nbsp;&nbsp;(d) nothing
 in this Disclosure Letter constitutes an admission of any liability or obligation of the
 Company or any of its subsidiaries or affiliates to any third party, nor an admission against
 the interests of the Company or any of its subsidiaries or affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;(e) notwithstanding
 paragraph (a) hereof, this Disclosure Letter and the information and disclosure contained
 in this Disclosure Letter are intended only to qualify and limit the representations, warranties
 and covenants of the Company contained in the Merger Agreement and shall not be deemed to
 expand in any way the scope or effect of any of such representations, warranties or covenants.
 This Disclosure Letter itself does not constitute or imply and shall not be construed as
 any representation, warranty, covenant, agreement, assurance or undertaking which is not
 expressly set out in the Merger Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;(f) disclosure
 of any information in this Disclosure Letter that is not strictly required under the Merger
 Agreement has been made for informational purposes only and does not imply disclosure of
 all matters of a similar nature.

All of the information contained in this Disclosure Letter is provided as of the date of this Disclosure Letter. This Disclosure Letter forms an integral part of the Merger Agreement and all references to the Merger Agreement include this Disclosure Letter. The titles and headings in this Disclosure Letter are for convenient reference only and are not to affect the interpretation of the Merger Agreement or this Disclosure Letter. This Disclosure Letter may not be amended, supplemented or otherwise modified except by written agreement signed by the Parties.

*[Remainder of page has been left intentionally blank]*

 

---

| | |
|:---|:---|
| Yours truly, | Yours truly, |
| **ICANIC BRANDS COMPANY INC.** | **ICANIC BRANDS COMPANY INC.** |
| By: | */s/ Brandon Kou* |
| Name: | Brandon Kou |
| Title: | Chief Executive Officer |

---

The section number reference set forth below correspond to sections of the Merger Agreement.

**Section 3.1(b) - Capitalization of the Company**

The Company is authorized to issue unlimited common shares without par value and unlimited preferred shares without par value.

As of the date hereof, the Company has 13,852,998 options and 7,880,000 common share purchase warrants outstanding.

Share Exchange Agreement dated June 1, 2021 between the Company, De Krown Enterprises LLC ("**De Krown**") and the unitholders of De Krown whereby the Company shall issue additional common shares to the unitholders upon meeting certain conditions as set out in the Share Exchange Agreement.

Share Exchange Agreement dated April 7, 2021 between the Company, THC Engineering, LLC, THC Engineering Holdings, LLC and the unitholders of De Krown whereby the Company shall issue additional common shares to the unitholders upon meeting certain conditions as set out in the Share Exchange Agreement.

$223,673.06 common shares of the Company at a share price equal to the market price of the common shares of the Company on the CSE as of the repayment date, less the allowable discount permitted under the policies of the Canadian Securities Exchange ("**CSE**") as of the repayment date, less an agreed upon discount permitted under the policies of the CSE will be issued pursuant to the Secured Loan Agreement between the Company and Block One Capital Inc. dated March 1, 2020 as amended.

**Section 3.1(c) - Subsidiaries**

---

| | | |
|:---|:---|:---|
| **Subsidiary** | **Jurisdiction** | **Ownership** |
| 1127466 B.C. Ltd. | British Columbia | Icanic Brands Company Inc. (100%) |
| 1200665 B.C. Ltd. | British Columbia | Icanic Brands Company Inc. (100%) |
| Canna Network Enterprise Inc. | California | Icanic Brands Company Inc. (100%) |
| Preferred Brand LLC | California | Icanic Brands Company Inc. (100%) |
| THC Engineering, LLC | California | Icanic Brands Company Inc. (100%) |
| THC Engineering Holdings, LLC | California | Icanic Brands Company Inc. (100%) |
| Ganja Gold Inc. | California | Icanic Brands Company Inc. (100%) |
| De Krown Enterprises, LLC | California | Icanic Brands Company Inc. (100%) |
| X-Sprays Industries Inc. | Delaware | 1127466 B.C. Ltd. (100%) |

---

The Company has a binding letter of intent to acquire all the issued and outstanding shares of common stock of Substance USA LLC.

**Section 3.1(d) - Cannabis Licenses**

---

| | | | |
|:---|:---|:---|:---|
| **Licensee** | **License** | **Jurisdiction** | **Term** |
| Preferred Brand LLC | Cannabis Manufacturer License Adult-Use and Medicinal (CDPH- 10004678) | California | August 12, 2021 to August 12, 2022 |
| De Krown Enterprises, LLC | Annual Manufacturing License (10003571) | California | June 27, 2021 to June 27, 2022 |

---

**Section 3.1(q) - Encumbrances**

Secured Loan Agreement between the Company and Block One Capital Inc. dated March 1, 2020 as amended. The Company has been informed that Block One Capital Inc. shall be exercising the conversion feature on the loan, converting the loan to $223,673.06 common shares of the Company at a share price equal to the market price of the common shares of the Company on the CSE as of the repayment date, less an agreed upon discount permitted under the policies of the CSE.

**Section 3.1(r) - Permits**

Nil

**Section 3.1(s) - Intellectual Property**

There is a pending patent with the U.S Patent and Trademark (USPTO) office for an Automated Fill and Twist Machine and Method. The patent application is at the publication stage of the process pending power of attorney filing and any subsequent requests from the USPTO.

**Section 3.1(v) - Purchaser Transaction Approvals** The Purchaser is required to file a Form 10 with the CSE. **Section 3.1(y) - Real Property and Leases**

Lease Agreement dated January 2, 2020 between PCH Partners LLC and Preferred Brand LLC. for the premises located at 5135 Port Chicago Highway, Concord, California 94520.

Lease Agreement dated January 15<sup>th</sup>, 2022 between 6002 Warehouse Way Investors LLC and De Krown Enterprises, LLC for the premises located at 6002 Warehouse Way Sacramento, CA 95828.

Lease Agreement dated June 1<sup>st</sup>, 2020 between 8583 Holdings, LLC for the premises located at as 8583 Elder Creek Road, Suite 300, Sacramento, California 95828.

**Section 3.1(z) - Cease Trade Orders**

The failure-to-file cease trade order issued in each of British Columbia and Ontario respectively on February 15, 2022 with respect to the Company's failure to file the audited annual financial statements and accompanying management's discussion and analysis for the year ended July 31, 2021 by November 29, 2021 was revoked on April 13, 2022.

The management cease trade order issued on November 30, 2021 was revoked on April 13, 2022.

**Section 3.1(bb) - Contracts exceeding $50,000**

Letter of Intent between the Company and Substance USA LLC dated August 30, 2021.

Share Exchange Agreement among the Company, THC Engineering, LLC, THC Engineering Holdings, LLC and unitholders of THC Engineering, LLC and THC Engineering Holdings, LLC dated April 7, 2021.

Share Exchange Agreement between the Company and de Krown Enterprise, LLC dated June 30th, 2021. Employment Agreement dated June 30<sup>th</sup>, 2021 between De Krown Enterprises, LLC and Stuart Chang.

Employment Agreement dated June 30<sup>th</sup>, 2021 between De Krown Enterprises, LLC and Josh Gjoraas.

Employment Agreement dated June 30<sup>th</sup>, 2021 between De Krown Enterprises, LLC and Dave Johnson.

Employment Agreement dated June 30<sup>th</sup>, 2021 between De Krown Enterprises, LLC and David Kirsch.

Corporate Officer Engagement Agreement dated December 9, 2019 and Brandon Kou.

Executive Employment Agreement dated in January 2021 between the Company and Mark Austin Smith.

**Section 3.1(ee) - Employee Plans**

Stock option plan adopted by the board of directors on May 27, 2016.

Corporate Officer Engagement Agreement dated December 9, 2019 between the Company and Brandon Kou, which provides shares and warrants compensation based on meeting certain milestones.

Executive Employment Agreement dated in January 2021 between the Company and Mark Austin Smith, which provides a bonus payment of cash and shares based on meeting certain conditions.

**Section 3.1(ff) - Interest of Directors, Officers, associates and Affiliates**

Nil

**LOCK-UP LETTER AGREEMENT**

Icanic Brands Company Inc. 789 West Pender Street, Suite 810 Vancouver, BC V6C 1H2 April 19, 2022

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any obligations of the undersigned under the Conditional Purchase Agreement dated as of the date hereof among Leef, Micah Anderson, as the representative of the shareholders of Leef, Mark Smith and Kamaldeep Thindal (the "**Conditional Purchase Agreement**"); (B) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (C) securities sold to satisfy tax obligations on the exercise of any convertible securities; (D) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (E) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (D) and (E) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

1. The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

For greater certainty, nothing in this Lock-Up Agreement shall restrict the undersigned from performing or satisfying his obligations under the Conditional Purchase Agreement.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

2. ---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ RAJINDER GREWAL* |
| Signature of Witness | RAJINDER GREWAL |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

Icanic Brands Company Inc. 789 West Pender Street, Suite 810 Vancouver, BC V6C 1H2 April 19, 2022

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly 200,200 common shares ("**Common Shares**") and 875,000 stock options or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

2. ---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ BRANDON KOU* |
| Signature of Witness | BRANDON KOU |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

Icanic Brands Company Inc. April 20, 2022 <br> 789 West Pender Street, Suite 810 Vancouver, BC V6C 1H2

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

1. The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

2. ---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ CHRISTOPHER CHERRY* |
| Signature of Witness | CHRISTOPHER CHERRY |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

Icanic Brands Company Inc. 789 West Pender Street, Suite 810 Vancouver, BC V6C 1H2 April 19, 2022

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any obligations of the undersigned under the Conditional Purchase Agreement dated as of the date hereof among Leef, Micah Anderson, as the representative of the shareholders of Leef, Mark Smith and Kamaldeep Thindal (the "**Conditional Purchase Agreement**"); (B) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (C) securities sold to satisfy tax obligations on the exercise of any convertible securities; (D) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (E) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (D) and (E) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

1. The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

For greater certainty, nothing in this Lock-Up Agreement shall restrict the undersigned from performing or satisfying his obligations under the Conditional Purchase Agreement.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

2. ---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ JAGDISH THINDAL* |
| Signature of Witness | JAGDISH THINDAL |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

Icanic Brands Company Inc. 789 West Pender Street, Suite 810 Vancouver, BC V6C 1H2 April 19, 2022

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any obligations of the undersigned under the Conditional Purchase Agreement dated as of the date hereof among Leef, Micah Anderson, as the representative of the shareholders of Leef, Mark Smith and Kamaldeep Thindal (the "**Conditional Purchase Agreement**"); (B) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (C) securities sold to satisfy tax obligations on the exercise of any convertible securities; (D) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (E) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (D) and (E) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

1. The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

For greater certainty, nothing in this Lock-Up Agreement shall restrict the undersigned from performing or satisfying his obligations under the Conditional Purchase Agreement.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

2. ---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ KAMALDEEP THINDAL* |
| Signature of Witness | KAMALDEEP THINDAL |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April 20, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the **"Merger Agreement")** dated as of January 21, 2022 among Icanic Brands Company Inc. **("Icanic"),** Leef Holdings, Inc. **("Leef'),** Icanic Merger Sub, Inc. **("Subco")** and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way ofa merger between Subco and Leefpursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the **"Transaction").** Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion ofthe Transaction.

The undersigned is an officer, director and/or a shareholder of lcanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly 22,748,224 common shares **("Common Shares")** or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the **"Locked-Up Securities").**

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the **"Lock-Up Period"),** the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any obligations ofthe undersigned under the Conditional Purchase Agreement dated as of the date hereof among Leef, Micah Anderson, as the representative of the shareholders of Leef, Mark Smith and Kamaldeep Thindal (the **"Conditional Purchase Agreement");** (B) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (C) securities sold to satisfy tax obligations on the exercise of any convertible securities; (D) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (E) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (D) and (E) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

1. The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

For greater certainty, nothing in this Lock-Up Agreement shall restrict the undersigned from performing or satisfying his obligations under the Conditional Purchase Agreement.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.}*

 

2. ---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ MARK SMITH* |
| Signature of Witness | MARK SMITH |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April 19, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") and stock options or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

1. The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

2. ---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ NISHAL KUMAR* |
| Signature of Witness | NISHAL KUMAR |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April 20, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ RIPAL PATEL* |
| Signature of Witness | RIPAL PATEL |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

---

| | |
|:---|:---|
| Icanic Brands Company Inc. | April 19, 2022 |
| 789 West Pender Street, Suite 810 |  |
| Vancouver, BC |  |
| V6C 1H2 |  |

---

Attention: Brandon Kou, Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A.200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer, director and/or a shareholder of Icanic or a proposed officer, director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly common shares ("**Common Shares**") and stock options or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not, without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale, transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) any such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

1. The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warrants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of Icanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows.]*

 

2. ---

| | |
|:---|:---|
| DATED and effective as of the date set forth above. |  |
| | */s/ SUHAS PATEL* |
| Signature of Witness | SUHAS PATEL |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 18
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;ii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 21
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 24
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;iv. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 27
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;v. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 30
 months following the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;vi. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 33
 months following the date hereof; and

&nbsp;&nbsp;&nbsp;&nbsp;vii. 16.66%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement for a period of 36
 months following the date hereof.

**LOCK-UP LETTER AGREEMENT**

Icanic Brands Company Inc. 789 West Pender Street, Suite 810 Vancouver, BC V6C1H2 April 19, 2022

Attention: Brandon Koul Chief Executive Officer

Re: Lock-up Letter Agreement with Icanic Brands Company Inc.

Reference is made to the Merger Agreement (the "**Merger Agreement**") dated as of January 21, 2022 among Icanic Brands Company Inc. ("**Icanic**"), Leef Holdings, Inc. ("**Leef**"), Icanic Merger Sub, Inc. ("**Subco**") and Micah Anderson, solely in his capacity as representative of the shareholders of Leef, relating to the acquisition by Icanic of all the outstanding common stock of Leef to be effected way of a merger between Subco and Leef pursuant to Section 92A. 200 of the Nevada Revised Statutes and on and subject to the terms and conditions of the Merger Agreement (the "**Transaction**"). Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement. References to "Icanic" includes Icanic following the completion of the Transaction.

The undersigned is an officer director and/or a shareholder of Icanic or a proposed officer director and/or shareholder of Icanic following the completion of the Transaction who, or who will, beneficially own(s) or exercise(s) control or direction over, directly or indirectly 22, 090, 184 common shares ("**Common Shares**") or other equity securities of Icanic or securities convertible into or exchangeable for or otherwise exercisable to acquire Common Shares or other equity securities of Icanic, whether now owned or hereinafter acquired (collectively, the "**Locked-Up Securities**").

In consideration of the foregoing, the undersigned hereby agrees that for the periods set forth in Appendix A to this Lock-Up Agreement (the "**Lock-Up Period**"), the undersigned will not without the prior written consent of Icanic, such consent not to be unreasonably withheld, directly or indirectly, (i) offer, sell, contract to sell, grant or sell any option to purchase, purchase any option or contract to sell, hypothecate, pledge, transfer, assign, lend, swap, or enter into any other agreement to transfer the economic consequences of, or otherwise dispose of or deal with any of the Locked-Up Securities whether through the facilities of a stock exchange, by private placement or otherwise, (ii) engage in any hedging transaction, or enter into any form of agreement the consequence of which is to alter economic exposure to, any Locked-Up Securities, or (iii) announce any intention to do any of the foregoing, except that the foregoing restrictions shall not apply to: (A) any sale transfer or tender of any of the Locked-Up Securities to a take-over bid or in connection with a merger, business combination, arrangement, restructuring or similar transaction involving the Common Shares, provided that in the event such transaction is not completed the Locked-Up Securities shall continue to be subject to this agreement; (B) securities sold to satisfy tax obligations on the exercise of any convertible securities; (C) transfers to affiliates of the undersigned, any family members of the undersigned, or any company, trust or other entity owned by or maintained for the benefit of the undersigned for tax or other planning purposes; or (D) transfers occurring by operation of law or in connection with transactions arising as a result of the death of the undersigned provided that in each of (C) and (D) my such transferee shall first enter into an agreement in substantially similar form to this agreement, which shall remain in full force and effect until the expiry of the Lock-Up Period. If the undersigned is a shareholder of Leef entitled to receive Common Shares pursuant to the Transaction, the undersigned acknowledges that the Lock-Up Period pursuant to this Lock-Up Agreement is in addition to, and shall run concurrently with, any lock-up period for the Common Shares contemplated under the Merger Agreement.

The undersigned authorizes Icanic, during the Lock-Up Period, to decline to transfer and/or to note stop transfer restrictions on the transfer books and records of Icanic with respect to any Locked-Up Securities for which the undersigned is the record holder and, in the case of any such Locked-Up Securities for which the undersigned is the beneficial but not the record holder, agrees to cause the record holder to cause the transfer agent to decline to transfer and/or to note stop transfer restrictions on such books and records with respect to such securities.

The undersigned represents, warants, and covenants with Icanic and acknowledges that Icanic is relying on the representations and agreements of the undersigned contained in this agreement in carrying out and completing the Transaction, (i) that they have or will have good and marketable title to the Locked-Up Securities, (ii) that they have full capacity, power, and authority to enter into this Lock-Up Agreement, and (iii) that upon the reasonable request of leanic, the undersigned will execute any additional documents necessary or desirable in connection with the enforcement hereof and that he or she will do all such acts and take all such steps as reasonably required to fully perform and carry out the provisions of this Lock-Up Agreement. All authority herein conferred or agreed to be conferred shall survive the death, disability, dissolution, winding-up, amalgamation or incapacity of the undersigned and the associates and affiliates thereof and any obligations of the undersigned shall be binding upon the heirs, representatives, successors and permitted assigns of the undersigned.

This Lock-Up Agreement is governed by the laws of the Province of British Columbia and the federal laws of Canada applicable therein.

This Lock-Up Agreement is irrevocable and will be binding on the undersigned and the undersigned's respective successors, heirs, personal or legal representatives and permitted assigns.

This Lock-Up Agreement may be executed by counterpart signatures (including counterparts by facsimile, pdf or other electronic means), each of which shall be effective as original signatures.

*[Signature page follows]*

DATED and effective as of the date set forth above

---

| | |
|:---|:---|
| | */s/ ALEX PATEL* |
| Signature of Witness | ALEX PATEL |

---

**Appendix A**

**Lock-Up Period**

The Lock-Up Period is as follows:

&nbsp;&nbsp;&nbsp;&nbsp;i. 100%
 of the Locked Up Securities shall be subject to this Lock-Up Agreement until December 31<sup>st</sup>, 2022;

**<u>OFFICER'S CERTIFICATE</u>**

---

| | |
|:---|:---|
| **TO:** | **LEEF Holdings, Inc. (the "Company")** |
| **RE:** | **Merger Agreement dated January 21, 2022 by and among Icanic Brands Company Inc. (the "Purchaser"), the Company, Icanic Merger Sub, Inc. and Micah Anderson (the "Merger Agreement")** |

---

This certificate is being provided to the Company pursuant to §9.3(b) of the Merger Agreement. Capitalized terms used but not otherwise defined herein have the same meanings ascribed to such terms in the Merger Agreement.

Pursuant to §9.3(b) of the Merger Agreement, the undersigned, Brandon Kou, Chief Executive Officer of the Purchaser, hereby certifies, in such capacity and not in his personal capacity that:

1. the
 constating documents of the Purchaser, attached hereto as Schedule "A", in effect immediately prior to Closing are full,
 true and correct copies thereof and have not been modified or rescinded as of the date of this certificate;

2. the
 resolutions of the board of directors of the Purchaser dated January 20, 2022, attached hereto as Schedule "B", approving
 the Merger and the transactions contemplated thereby are full, true and correct copies thereof and have not been modified or rescinded
 as of the date of this certificate;

3. the
 Purchaser Transaction Approvals have been obtained; and

4. the
 persons listed in Schedule "C" attached hereto are duly elected directors and/or appointed officers of the Purchaser
 and have been duly appointed to and now hold the offices set opposite their names and are duly authorized to execute the documents
 contemplated by the Merger Agreement.

DATED this 20 day of April, 2022.

---

| |
|:---|
| */s/ Brandon Kou* |
| **Brandon Kou** |
| Chief Executive Officer |

---

**SCHEDULE "A"**

**To Officer's Certificate dated April 20, 2022**

**<u>Constating Documents</u>**

 

*[See attached]*

![](ex10-4_029.jpg)

![](ex10-4_030.jpg)

![](ex10-4_031.jpg)

Date and Time: April 19, 2022 10:23 AM Pacific Time

---

| | | |
|:---|:---|:---|
| ![](ex10-4_035.jpg) | Mailing Address: | Location: |
| ![](ex10-4_035.jpg) | PO Box 9431 Stn Prov Govt | 2nd Floor - 940 Blanshard Street |
| ![](ex10-4_035.jpg) | Victoria BC V8W 9V3 | Victoria BC |
| ![](ex10-4_035.jpg) | <u>www.corporateonline.gov.bc.ca</u> | 1 877 526-1526 |

---

**Notice of Articles**

*BUSINESS CORPORATIONS ACT*

 

 

---

| | |
|:---|:---|
| *This Notice of Articles was issued by the Registrar on: June 3, 2021 11:14 AM Pacific Time* | *This Notice of Articles was issued by the Registrar on: June 3, 2021 11:14 AM Pacific Time* |
| *Incorporation Number:* | **BC0920360** |
| *Recognition Date and Time: Incorporated on September 15, 2011 11:53 AM Pacific Time* | *Recognition Date and Time: Incorporated on September 15, 2011 11:53 AM Pacific Time* |

---

 

 

**NOTICE OF ARTICLES**

 

**Name of Company:**

ICANIC BRANDS COMPANY INC.

**REGISTERED OFFICE INFORMATION**

---

| | |
|:---|:---|
| **Mailing Address:** | **Delivery Address:** |
| 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA | 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA |

---

**RECORDS OFFICE INFORMATION**

---

| | |
|:---|:---|
| **Mailing Address:** | **Delivery Address:** |
| 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA | 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA |

---

Page: 1 of 3

**DIRECTOR INFORMATION**

---

| |
|:---|
| **Last Name, First Name, Middle Name:** |
| Smith, Mark |

---

---

| | |
|:---|:---|
| **Mailing Address:** | **Delivery Address:** |
| SUITE 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA | SUITE 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA |

---

---

| |
|:---|
| **Last Name, First Name, Middle Name:** |
| Patel, Suhas |

---

---

| | |
|:---|:---|
| **Mailing Address:** | **Delivery Address:** |
| SUITE 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA | SUITE 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA |

---

---

| |
|:---|
| **Last Name, First Name, Middle Name:** |
| Patel, Ripal |

---

---

| | |
|:---|:---|
| **Mailing Address:** | **Delivery Address:** |
| SUITE 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA | SUITE 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA |

---

---

| |
|:---|
| **Last Name, First Name, Middle Name:** |
| Kou, Brandon |

---

---

| | |
|:---|:---|
| **Mailing Address:** | **Delivery Address:** |
| SUITE 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA | SUITE 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA |

---

---

| |
|:---|
| **Last Name, First Name, Middle Name:** |
| Kumar, Nishal |

---

---

| | |
|:---|:---|
| **Mailing Address:** | **Delivery Address:** |
| 2008 - 128 W CORDOVA STREET<br> VANCOUVER BC V6B 0E6<br> CANADA | 2008 - 128 W CORDOVA STREET<br> VANCOUVER BC V6B 0E6<br> CANADA |

---

---

| |
|:---|
| **Last Name, First Name, Middle Name:** |
| Cherry, Christopher |

---

---

| | |
|:---|:---|
| **Mailing Address:** | **Delivery Address:** |
| 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA | 810 - 789 WEST PENDER STREET<br> VANCOUVER BC V6C 1H2<br> CANADA |

---

Page: 2 of 3

**RESOLUTION DATES:** 

Date(s) of Resolution(s) or Court Order(s) attaching or altering Special Rights and Restrictions attached to a class or a series of shares:

February 18, 2013

**AUTHORIZED SHARE STRUCTURE**

1. No Maximum Common Shares Without Par Value <br>Without Special Rights or Restrictions attached

2. No Maximum Preferred Shares Without Par Value <br>With Special Rights or Restrictions attached

Page: 3 of 3

ICANIC BRANDS COMPANY INC.

**INTEGRATED CANNABIS COMPANY, INC.**

**CNRP MINING INC.**

 **(the "Company")**

The company has as its articles the following articles.

---

| | |
|:---|:---|
| **FULL name and singnature of a Director** | **Date of signing** |
| */s/ DANIEL WETTREICH* | January 3. 2013 |
| DANIEL WETTREICH |  |
| */s/ Eugene Beukman* | February 13, 2020 |
| Eugene Beukman | Incorporation number: BC0920360 |

---

**ARTICLES**

---

| | | | |
|:---|:---|:---|:---|
| **1.** | **INTERPRETATION** | **INTERPRETATION** | 1 |
|  | 1.1 | Definitions | 1 |
|  | 1.2 | *Business Corporations Act* and *Interpretation Act* Definitions Applicable | 1 |
|  |  |  | 1 |
| **2.** | **SHARES AND SHARE CERTIFICATES** | **SHARES AND SHARE CERTIFICATES** | 1 |
|  | 2.1 | Authorized Share Structure | 1 |
|  | 2.2 | Form of Share Certificate | 1 |
|  | 2.3 | Shareholder Entitled to Certificate or Acknowledgment | 1 |
|  | 2.4 | Delivery by Mail | 2 |
|  | 2.5 | Replacement of Worn Out or Defaced Certificate or Acknowledgement. | 2 |
|  | 2.6 | Replacement of Lost, Stolen or Destroyed Certificate or Acknowledgment | 2 |
|  | 2.7 | Splitting Share Certificates | 2 |
|  | 2.8 | Certificate Fee | 2 |
|  | 2.9 | Recognition of Trusts | 2 |
| **3.** | **ISSUE OF SHARES** | **ISSUE OF SHARES** | 3 |
|  | 3.1 | Directors Authorized | 3 |
|  | 3.2 | Commissions and Discounts | 3 |
|  | 3.3 | Brokerage | 3 |
|  | 3.4 | Conditions of Issue | 3 |
|  | 3.5 | Share Purchase Warrants and Rights | 3 |
| **4.** | **SHARE REGISTERS** | **SHARE REGISTERS** | 4 |
|  | 4.1 | Central Securities Register | 4 |
|  | 4.2 | Closing Register | 4 |

---

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---

| | | | |
|:---|:---|:---|:---|
| **5.** | **SHARE TRANSFERS** | **SHARE TRANSFERS** | 4.0 |
|  | 5.1 | Registering Transfers | 4.0 |
|  | 5.2 | Form of Instrument of Transfer | 4.0 |
|  | 5.3 | Transferor Remains Shareholder | 4.0 |
|  | 5.4 | Signing of Instrument of Transfer | 4.0 |
|  | 5.5 | Enquiry as to Title Not Required | 5.0 |
|  | 5.6 | Transfer Fee | 5.0 |
| **6.** | **TRANSMISSION OF SHARES** | **TRANSMISSION OF SHARES** | 5.0 |
|  | 6.1 | Legal Personal Representative Recognized on Death | 5.0 |
|  | 6.2 | Rights of Legal Personal Representative | 5.0 |
| **7.** | **PURCHASE OF SHARES** | **PURCHASE OF SHARES** | 5.0 |
|  | 7.1 | Company Authorized to Purchase Shares | 5.0 |
|  | 7.2 | Purchase When Insolvent | 6.0 |
|  | 7.3 | Sale and Voting of Purchased Shares | 6.0 |
| **8.** | **BORROWING POWERS** | **BORROWING POWERS** | 6.0 |
| **9.** | **ALTERATIONS** | **ALTERATIONS** | 6.0 |
|  | 9.1 | Alteration of Authorized Share Structure | 6.0 |
|  | 9.2 | Special Rights and Restrictions | 7.0 |
|  | 9.3 | Change of Name | 7.0 |
|  | 9.4 | Other Alterations | 7.0 |
| **10.** | **MEETINGS OF SHAREHOLDERS** | **MEETINGS OF SHAREHOLDERS** | 7.0 |
|  | 10.1 | Annual General Meetings | 7.0 |
|  | 10.2 | Resolution Instead of Annual General Meeting | 8.0 |
|  | 10.3 | Calling of Meetings of Shareholders | 8.0 |
|  | 10.4 | Notice for Meetings of Shareholders | 8.0 |
|  | 10.5 | Record Date for Notice | 8.0 |
|  | 10.6 | Record Date for Voting | 8.0 |
|  | 10.7 | Faiture to Give Notice and Waiver of Notice | 9.0 |
|  | 10.8 | Notice of Special Business at Meetings of Shareholders | 9.0 |
|  | 10.9 | Location of Meetings of Shareholders | 9.0 |
| **11.** | **PROCEEDINGS AT MEETINGS OF SHAREHOLDERS** | **PROCEEDINGS AT MEETINGS OF SHAREHOLDERS** | 9.0 |
|  | 11.1 | Special Business | 9.0 |
|  | 11.2 | Special Business Public Company | 10.0 |
|  | 11.3 | Special Majority | 10.0 |
|  | 11.4 | Quorum | 10.0 |
|  | 11.5 | One Shareholder May Constitute Quorum | 10.0 |
|  | 11.6 | Other Persons May Attend | 10.0 |
|  | 11.7 | Requirement of Quorum | 10.0 |
|  | 11.8 | Lack of Quorum | 10.0 |
|  | 11.9 | Lack of Quorum at Succeeding Meeting | 11.0 |
|  | 11.10 | Chair | 11.0 |

---

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| | | | |
|:---|:---|:---|:---|
|  | 11.11 | Selection of Alternate Chair | 11 |
|  | 11.12 | Adjournments | 11 |
|  | 11.13 | Notice of Adjourned Meeting | 11 |
|  | 11.14 | Decisions by Show of Hands or Poll | 11 |
|  | 11.15 | Declaration of Result | 12 |
|  | 11.16 | Motion Need Not be Seconded | 12 |
|  | 11.17 | Casting Vote | 12 |
|  | 11.18 | Manner of Taking Poll | 12 |
|  | 11.19 | Demand for Poll on Adjournment | 12 |
|  | 11.20 | Chair Must Resolve Dispute | 12 |
|  | 11.21 | Casting of Votes | 12 |
|  | 11.22 | Demand for Poll | 13 |
|  | 11.23 | Demand for Poll Not to Prevent Continuance of Meeting | 13 |
|  | 11.24 | Retention of Ballots and Proxies | 13 |
| **12.** | **VOTES OF SHAREHOLDERS** | **VOTES OF SHAREHOLDERS** | **13** |
|  | 12.1 | Number of Votes by Shareholder or by Shares | 13 |
|  | 12.2 | Votes of Persons in Representative Capacity | 13 |
|  | 12.3 | Votes by Joint Holders | 13 |
|  | 12.4 | Legal Personal Representatives as Joint Shareholders | 14 |
|  | 12.5 | Representative of a Corporate Shareholder | 14 |
|  | 12.6 | Proxy Provisions Do Not Apply to AU Companies | 14 |
|  | 12.7 | Appointment of Proxy Holders | 14 |
|  | 12.8 | Alternate Proxy Holders | 14 |
|  | 12.9 | When Proxy Holder Need Not Be Shareholder . | 15 |
|  | 12.10 | Deposit of Proxy | 15 |
|  | 12.11 | Validity of Proxy Vote | 15 |
|  | 12.12 | Form of Proxy | 16 |
|  | 12.13 | Revocation of Proxy | 16 |
|  | 12.14 | Revocation of Proxy Must Be Signed | 16 |
|  | 12.15 | Production of Evidence of Authority to Vote | 16 |
| **13.** | **DIRECTORS** | **DIRECTORS** | **17** |
|  | 13.1 | Number of Directors | 17 |
|  | 13.2 | Change in Number of Directors | 17 |
|  | 13.3 | Directors' Acts Valid Despite Vacancy | 17 |
|  | 13.4 | Qualifications of Directors | 17 |
|  | 13.5 | Remuneration of Directors | 17 |
|  | 13.6 | Reimbursement of Expenses of Directors | 18 |
|  | 13.7 | Special Remuneration for Directors | 18 |
|  | 13.8 | Gratuity, Pension or Allowance on Retirement of Director | 18 |
| **14.** | **ELECTION AND REMOVAL OF DIRECTORS** | **ELECTION AND REMOVAL OF DIRECTORS** | **18** |
|  | 14.1 | Election at Annual General Meeting | 18 |
|  | 14.2 | Consent to be a Director | 18 |
|  | 14.3 | Failure to Elect or Appoint Directors | 18 |

---

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| | | | |
|:---|:---|:---|:---|
|  | 14.4 | Places of Retiring Directors Not Filled | 19 |
|  | 14.5 | Directors May Fill Casual Vacancies | 19 |
|  | 14.6 | Remaining Directors Power to Act | 19 |
|  | 14.7 | Shareholders May Fill Vacancies | 19 |
|  | 14.8 | Additional Directors | 19 |
|  | 14.9 | Ceasing to be a Director | 20 |
|  | 14.10 | Removal of Director by Shareholders | 20 |
|  | 14.11 | Removal of Director by Directors | 20 |
| **15.** | **ALTERNATE DIRECTORS** | **ALTERNATE DIRECTORS** | **20** |
|  | 15.1 | Appointment of Alternate Director | 20 |
|  | 15.2 | Notice of Meetings | 20 |
|  | 15.3 | Alternate for More Than One Director Attending Meetings | 20 |
|  | 15.4 | Consent Resolutions | 21 |
|  | 15.5 | Alternate Director Not an Agent | 21 |
|  | 15.6 | Revocation of Appointment of Alternate Director | 21 |
|  | 15.7 | Ceasing to be an Alternate Director | 21 |
|  | 15.8 | Remuneration and Expenses of Alternate Director | 21 |
| **16.** | **POWERS AND DUTIES OF DIRECTORS** | **POWERS AND DUTIES OF DIRECTORS** | **21** |
|  | 16.1 | Powers of Management | 21 |
|  | 16.2 | Appointment of Attorney of Company | 22 |
|  | 16.3 | Setting the Remuneration of Auditors | 22 |
| **17.** | **DISCLOSURE OF INTEREST OF DIRECTORS** | **DISCLOSURE OF INTEREST OF DIRECTORS** | **22** |
|  | 17.1 | Obligation to Account for Profits | 22 |
|  | 17.2 | Restrictions on Voting by Reason of Interest | 22 |
|  | 17.3 | Interested Director Counted in Quorum | 22 |
|  | 17.4 | Disclosure of Conflict of Interest or Property | 22 |
|  | 17.5 | Director Holding Other Office in the Company | 23 |
|  | 17.6 | No Disqualification | 23 |
|  | 17.7 | Professional Services by Director or Officer | 23 |
|  | 17.8 | Director or Officer in Other Corporations | 23 |
| **18.** | **PROCEEDINGS OF DIRECTORS** | **PROCEEDINGS OF DIRECTORS** | **23** |
|  | 18.1 | Meetings of Directors | 23 |
|  | 18.2 | Voting at Meetings | 23 |
|  | 18.3 | Chair of Meetings | 23 |
|  | 18.4 | Meetings by Telephone or Other Communications Medium | 24 |
|  | 18.5 | Calling of Meetings | 24 |
|  | 18.6 | Notice of Meetings | 24 |
|  | 18.7 | When Notice Not Required | 24 |
|  | 18.8 | Meeting Valid Despite Failure to Give Notice | 25 |
|  | 18.9 | Waiver of Notice of Meetings | 25 |
|  | 18.10 | Quorum | 25 |
|  | 18.11 | Validity of Acts Where Appointment Defective | 25 |

---

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| | | | |
|:---|:---|:---|:---|
|  | 18.12 | Consent Resolutions in Writing | 25 |
| **19.** | **EXECUTIVE AND OTHER COMMITTEES** | **EXECUTIVE AND OTHER COMMITTEES** | **25** |
|  | 19.1 | Appointment and Powers of Executive Committee | 25 |
|  | 19.2 | Appointment and Po11vers of Other Committees | 26 |
|  | 19.3 | Obligations of Committees | 26 |
|  | 19.4 | Powers of Board | 26 |
|  | 19.5 | Committee Meetings | 27 |
| **20.** | **OFFICERS** | **OFFICERS** | **27** |
|  | 20.1 | Directors May Appoint Officers | 27 |
|  | 20.2 | Functions, Duties and Powers of Officers | 27 |
|  | 20.3 | Qualifications | 27 |
|  | 20.4 | Remuneration and Terms of Appointment | 27 |
| **21.** | **INDEMNIFICATION** | **INDEMNIFICATION** | **28** |
|  | 21.1 | Definitions | 28 |
|  | 21.2 | Mandatory Indemnification of Directors and Former Directors | 28 |
|  | 21.3 | Mandatory Advancement of Expenses | 28 |
|  | 21.4 | Indemnification of Other Persons | 28 |
|  | 21.5 | Non-Compliance with *Business Corporations* Act | 28 |
|  | 21.6 | Company May Purchase Insurance | 29 |
| **22.** | **DIVIDENDS** | **DIVIDENDS** | **29** |
|  | 22.1 | Payment of Dividends Subject to Special Rights | 29 |
|  | 22.2 | Declaration of Dividends | 29 |
|  | 22.3 | No Notice Required | 29 |
|  | 22.4 | Record Date | 29 |
|  | 22.5 | Manner of Paying Dividend | 29 |
|  | 22.6 | Settlement of Difficulties | 29 |
|  | 22.7 | When Dividend Payable | 30 |
|  | 22.8 | Dividends to be Paid in Accordance with Number of Shares | 30 |
|  | 22.9 | Receipt by Joint Shareholders | 30 |
|  | 22.10 | Dividend Bears No Interest | 30 |
|  | 22.11 | Fractional Dividends | 30 |
|  | 22.12 | Payment of Dividends | 30 |
|  | 22.13 | Capitalization of Surplus | 30 |
| **23.** | **DOCUMENTS, RECORDS AND REPORTS** | **DOCUMENTS, RECORDS AND REPORTS** | **31** |
|  | 23.1 | Recording of Financial Affairs | 31 |
|  | 23.2 | Inspection of Accounting Records | 31 |
| **24.** | **NOTICES** | **NOTICES** | **31** |
|  | 24.1 | Method of Giving Notice | 31 |
|  | 24.2 | Deemed Receipt of Mailing | 32 |
|  | 24.3 | Certificate of Sending | 32 |

---

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vi

---

| | | | |
|:---|:---|:---|:---|
|  | 24.4 | Notice to Joint Shareholders | 32 |
|  | 24.5 | Notice to Trustees | 32 |
| **25.** | **SEAL** | **SEAL** | **32** |
|  | 25.1 | Who May Attest Seal | 32 |
|  | 25.2 | Sealing Copies | 33 |
|  | 25.3 | Mechanical Reproduction of Seal | 33 |

---

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vii

**PROVINCE OF BRITISH COLUMBIA**

***BUSINESS CORPORATIONS ACT***

**ARTICLES OF**

**CNRP RESOURCES INC.**

**1.** **INTERPRETATION** 

**1.1** **Definitions** 

In these Articles, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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; |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) "legal personal
 representative" means the personal or other legal representative of the shareholder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) "registered address"
 of a shareholder means the shareholder's address as recorded in the central securities
 register; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) "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 an enactment. 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 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** 

Each shareholder is entitled, 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 and delivery of a share certificate for a share to one of several joint shareholders or to one of the shareholders' duly authorized agents will be sufficient delivery to all.

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2.4 Delivery by Mail

Any share certificate or non-transferable written acknowledgment of a shareholder's right to obtain a share certificate 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 or acknowledgement 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) order the share certificate or acknowledgment,
 as the case may be, to be cancelled; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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, if the directors receive:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) proof satisfactory to them that the share certificate or acknowledgment
 is lost, stolen or destroyed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any indemnity the directors consider adequate.

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.

2.8 Certificate Fee

There must be paid to the Company, in relation to the issue of any share certificate under Articles 2.5, 2.6 or 2.7, the amount, if any, and which must not exceed the amount prescribed under the *Business Corporations Act,* determined by the directors.

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 by law or statute or these Articles provided 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.

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3. ISSUE OF SHARES

3.1 Directors Authorized

Subject to the *Business Corporations Act* and the rights 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.

3.3 Brokerage

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.

3.4 Conditions of Issue

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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) consideration is provided to the Company for the issue of the share
 by one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** past services performed for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) property;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) money; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the value of the consideration received
 by the Company equals or exceeds the issue price set for the share under Article 3.1.

3.5 Share Purchase Warrants and Rights

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**4.** **SHARE REGISTERS** 

4.1 Central Securities Register

As required by and subject to the *Business Corporations Act,* the Company must maintain in British Columbia a central securities register. The directors may, subject to the *Business Corporations Act,* appoint an agent to maintain the central 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.

4.2 Closing Register

The Company must not at any time close its central securities register

**5.** **SHARE TRANSFERS** 

5.1 Registering Transfers

A transfer of a share of the Company must not be registered unless:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a duly signed instrument of transfer in
 respect of the share has been received by the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if a share certificate has been issued
 by the Company in respect of the share to be transferred, that share certificate has been
 surrendered to the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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
 has been surrendered 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 by the directors from time to time.

**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 certificates or set out in the written acknowledgments deposited with the instrument of transfer:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the name of the person named as transferee
 in that instrument of transfer; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

5.6 Transfer Fee

There must be paid to the Company Transfer Agent, in relation to the registration of any transfer, the amount, if any, determined by the Transfer Agent.

6. TRANSMISSION OF SHARES

6.1 Legal Personal Representative Recognized on Death

ln case of the death of a shareholder, the legal personal representative, or if the shareholder was a joint holder, 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, the directors may require 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 has the same rights, privileges and obligations that attach to the shares 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.

7. PURCHASE OF SHARES

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 the directors, purchase or otherwise acquire any of its shares at the price and upon the terms specified in such resolution.

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7.2 Purchase When Insolvent

The Company must not make a payment or provide any other consideration to purchase or otherwise acquire any of its shares if there are reasonable grounds for believing that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company is insolvent; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) making the payment or providing the
 consideration would render the Company insolvent.

7.3 Sale and Voting of Purchased Shares

If the Company retains a share redeemed, purchased or otherwise acquired by it, the Company may sell, gift or otherwise dispose of the share, but, while such share is held by the Company, it:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) is not entitled to vote the share at a meeting of its shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) must not pay a dividend
 in respect of the share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) must not make any other distribution in respect of the share.

**8.** **BORROWING POWERS** 

The Company, if authorized by the directors, may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) borrow money in the manner and amount, on the security, from the sources
 and on the terms and conditions that they consider appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) guarantee the repayment of money by any
 other person or the performance of any obligation of any other person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

9. ALTERATIONS

9.1 Alteration of Authorized Share Structure

Subject to Article 9.2 and the *Business Corporations Act,* the Company may by a majority vote of the Board of Directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) 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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) increase, reduce or eliminate the maximum
 number of shares that the Company is authorized to issue out 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;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) subdivide
 or consolidate all or any of its unissued, or fully paid issued, shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if the Company is authorized to issue
 shares of a class of shares with par value:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) decrease the par value of those shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if none of the shares
 of that class of shares are allotted or issued, increase the par value of those shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) change
 all or any of its unissued, or fully paid issued, shares with par value into shares without
 par value or any of its unissued shares without par value into shares with par value;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) alter
 the identifying name of any of its shares; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) otherwise
 alter its shares or authorized share structure when required or permitted to do so by the *Business Corporations Act.* 

9.2 Special Rights and Restrictions

Subject to the *Business Corporations Act,* the Company may by majority vote of the Board of Directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) create
 special rights or restrictions for, and attach those special rights or restrictions to, the
 shares of any class or series of shares, whether or not any or all of those shares have been
 issued; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) vary
 or delete any special rights or restrictions attached to the shares of any class or series
 of shares, whether or not any or all of those shares have been issued.

9.3 Change of Name

The Company may by directors' resolution authorize an alteration of its Notice of Articles in order to change its name

9.4 Other Alterations

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 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 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 the directors.

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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 under the *Business Corporations Act* 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, whenever they think fit. call a meeting of shareholders.

10.4 Notice for Meetings of Shareholders

The Company must send notice of the date, time and location of any meeting of shareholders, in the manner provided in these Articles, or in such other manner, if any, as may be prescribed by ordinary resolution (whether previous notice of the resolution has been given or not), to each shareholder entitled to attend the meeting and to each director of the Company, unless these Articles otherwise provide, at least the following number of days before the meeting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if
 and for so long as the Company is a public company, 21 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) otherwise, 10 days.

10.5 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if and for so long as the Company is a public company, 21 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) otherwise, 10 days.

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.

10.6 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.

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**10.7** **Failure to Give Notice and Waiver of Notice** 

The accidental omission to send notice of any meeting 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 or reduce the period of notice of such meeting.

**10.8** **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 or 11.2, the notice of meeting must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) state the general nature
 of the special business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at the Company's
 records office, or at such other reasonably accessible location in British Columbia as is
 specified in the notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) during statutory business
 hours on any one or more specified days before the day set for the holding of the meeting.

**10.9** **Location of Meetings of Shareholders** 

Meetings of shareholders may be held at any location within Canada, or at any location outside of Canada if authorized by directors· resolution.

**11.** **PROCEEDINGS AT MEETINGS OF SHAREHOLDERS** 

**11.1** **Special Business** 

At a meeting of shareholders, the following business is special business:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) at an annual general
 meeting, all business is special business except for the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) business relating to the
 conduct of or voting at the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consideration of any financial
 statements of the Company presented to the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) consideration of any reports
 of the directors or auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the setting or changing
 of the number of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the election or appointment
 of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the appointment of an
 auditor;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the setting of the remuneration of an auditor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) business arising out
 of a report of the directors not requiring the passing of a special resolution or an exceptional
 resolution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

**11.2** **Special Business Public Company** 

If and for so long as the Company is a public company, Article 11.1 does not apply and any business presented to a general meeting of shareholders, is special business if a special resolution is being submitted to shareholders to approve such business.

**11.3** **Special Majority** 

The majority of votes required for the Company to pass a special resolution at a meeting of shareholders is two-thirds of the votes cast on the resolution.

**11.4** **Quorum** 

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 two persons who are, or who represent by proxy, shareholders who, in the aggregate, hold at least 5% of the issued shares entitled to be voted at the meeting.

**11.5** **One Shareholder May Constitute Quorum** 

If there is only one shareholder entitled to vote at a meeting of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the
 quorum is one person who is, or who represents by proxy, that shareholder, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) that
 shareholder, present in person or by proxy, may constitute the meeting.

**11.6** **Other Persons May Attend** 

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 and any other persons invited by the directors are entitled to attend any meeting of shareholders, but if any of those persons does attend a meeting of shareholders, 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 proxy holder entitled to vote at the meeting.

**11.7** **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.

**11.8** **Lack of Quorum** 

If. within one-half hour from the time set for the holding of a meeting of shareholders, a quorum is not present

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in
 the case of a general meeting requisitioned by shareholders,
 the meeting is dissolved, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

11.9 Lack of Quorum at Succeeding Meeting

If, at the meeting to which the meeting referred to in Article 11.8(b) was adjourned, a quorum is not present within one-half hour from the time set for the holding of the meeting, the person or persons present and being, or representing by proxy, one or more shareholders entitled to attend and vote at the meeting constitute a quorum.

11.10 Chair

The following individual is entitled to preside as chair at a meeting of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the chair of the board, if any; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if
 the chair of the board is absent or unwilling to act as chair of the meeting, the president
 or chief executive officer, if any.

11.11 Selection of Alternate Chair

If, at any meeting of shareholders, there is no chair of the board or president or chief executive officer present within 15 minutes after the time set for holding the meeting, or if the chair of the board and the president are unwilling to act as chair of 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 one of their number to be chair of the meeting or if all of the directors present decline to take the chair or fail to so choose or if no director is present, 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.

11.12 Adjournments

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.

11.13 Notice of Adjourned Meeting

It is not necessary to give any notice of an adjourned meeting 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.

11.14 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 at least one shareholder entitled to vote who is present in person or by proxy

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**11.15** **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 11.14, conclusive evidence without proof of the number or proportion of the votes recorded in favour of or against the resolution.

**11.16** **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.

**11.17** **Casting Vote** 

In case of an equality of votes, the chair of a meeting of shareholders does not, either on a show of hands or on a poll, have a second or casting vote in addition to the vote or votes to which the chair may be entitled as a shareholder.

**11.18** **Manner of Taking Poll** 

Subject to Article 11.19, if a poll is duly demanded at a meeting of shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the poll must be taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) at
 the meeting, or within seven days after the date of the meeting, as the chair of the meeting
 directs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in
 the manner, at the time and at the place that the chair of the meeting directs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the
 result of the poll is deemed to be the decision of the meeting at which the poll is demanded;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the
 demand for the poll may be withdrawn by the person who demanded it.

**11.19** **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.

**11.20** **Chair Must Resolve Dispute** 

ln 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.

**11.21** **Casting of Votes** 

On a poll, a shareholder entitled to more than one vote need not cast all the votes in the same way.

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11.22 Demand for Poll

No poll may be demanded in respect of the vote by which a chair of a meeting of shareholders is elected.

11.23 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.

11.24 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 proxyholder 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any
 one of the joint shareholders may vote at any meeting, either personally or by proxy, in
 respect of the share as if that joint shareholder were solely entitled to it; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if more than one of
 the joint shareholders is present at any meeting, 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.

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**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.

**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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) for
 that purpose, the instrument appointing a representative must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 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 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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) be
 provided, at the meeting, to the chair of the meeting or to a person designated by the chair
 of the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if
 a representative is appointed under this Article 12.5:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

**12.6** **Proxy Provisions Do Not Apply to All Companies** 

Article 12.9 will not apply to the Company if and for so long as it is a public company.

**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 of the Company may, by proxy, appoint one or more (but not more than five) 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.

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**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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the
 person appointing the proxy holder is a corporation or a representative of a corporation
 appointed under Article 12.5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

**12.10** **Deposit of Proxy** 

A proxy for a meeting of shareholders must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) unless
 the notice provides otherwise, be provided, at the meeting, to the chair of the meeting or
 to a person designated by the chair of the 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 at which the proxy is to be used; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) by
 the chair of the meeting, before the vote is taken.

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**12.12** **Form of Proxy** 

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 if given in respect of all shares registered in the name of the shareholder): _____________________

---

| |
|:---|
| Signed *[month, day, year]* |
| *[Signature of shareholder]* |
| *[Signature of shareholder]* |

---

**12.13** **Revocation of Proxy** 

Subject to Article 12.14, every proxy may be revoked by an instrument in writing that is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) received 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 at which the proxy is to be used; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) provided, at the meeting, to the chair of the meeting.

**12.14** **Revocation of Proxy Must Be Signed** 

An instrument referred to in Article 12.13 must be signed as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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.

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13. DIRECTORS

13.1 Number of Directors

The number of directors, excluding additional directors appointed under Article 14.8, is set at:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if
 the Company is a public company, the greater of three and the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 number of directors set by ordinary resolution at a shareholders meeting (whether or not
 previous notice of the resolution was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 number of directors set under Article 14.4 and subject to Article **14.8;** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if
 the Company is not a public company, the most recently set of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 number of directors set by ordinary resolution (whether or not previous notice of the resolution
 was given); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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(a)(1) or 13.1(b)(1):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 shareholders may elect or appoint the directors needed to fill any vacancies in the board
 of directors up to that number;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) 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 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 remuneration for acting as directors, if any, as the directors may from time to time determine. The directors may determine the remuneration of any officers of the Company by majority vote, and may delegate that power to the Chief Executive Officer of the Company, who may appoint a remuneration committee of which the Chief Executive Officer is the chair.

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**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, 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 who has held any salaried office or place of profit with the Company 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all
 the directors cease to hold office immediately before the election or appointment of directors
 under paragraph (a), 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) that
 individual consents to be a director in the manner provided for in the *Business Corporations Act;* or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) that
 individual is elected or appointed at a meeting and the individual does not refuse, at the
 meeting, to be a director.

**14.3** **Failure to Elect or Appoint Directors** 

If:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the date on which his
 or her successor is elected or appointed: and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the date on which 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 summoning 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 one-third of the number of the current directors who were elected or appointed as directors other than under this Article 14.8.

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Any director so appointed ceases to hold office immediately before the next election or appointment of directors under Article 14.1(a), but is eligible for re-election or re- appointment.

**14.9** Ceasing
 to **be a** Director

A director ceases to be a director when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the
 term of office of the director expires;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the
 director dies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the
 director resigns as a director by notice in writing provided to the Company or a lawyer for
 the Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 ordinary 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. ALTERNATIVE DIRECTORS

15.1 Appointment of Alternate Director

The directors' may determine to approve an appointee as an alternate director to an existing director in their sole discretion.

15.2 Notice of Meetings

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

If a person has been accepted as an alternate director by the directors, then an alternate director:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) will
 be counted in determining the quorum for a meeting of directors once for each of his or her
 appointers and, in the case of an appointee who is also a director, once more in that capacity;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) has
 a separate *vote* at a meeting of a committee of directors for each of his or her appointers
 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.

15.4 Consent Resolutions

Every alternate director, if authorized by the notice appointing him or her, may sign in place of his or her appointer 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) his
 or her appointor ceases to be a director and is not promptly re-elected or re-appointed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the
 alternate director dies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the
 alternate director resigns as an alternate director by notice in writing provided to the
 Company or a lawyer for the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the
 alternate director ceases to be qualified to act as a director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 appointer as the appointer 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.

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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.

16.3 Setting the Remuneration of Auditors

The directors may from time to time set the remuneration of the auditors of the Company.

17. DISCLOSURE OF INTEREST OF DIRECTORS

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 nati..iie and extent of the conflict as required by the *Business Corporations Act.*

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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.

17.6 No Disqualification

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.

18.2 Voting at Meetings

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.

18.3 Chair of Meetings

The following individual is entitled to preside as chair at a meeting of directors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the
 chair of the board, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in
 the absence of the chair of the board, the president or chief executive officer, if any,
 if the president or chief executive officer is a director; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) any other director chosen
 by the directors if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) neither
 the chair of the board nor the president or chief executive officer, if a director, is present
 at the meeting within 15 minutes after the time set for holding the meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) neither
 the chair of the board nor the president or chief executive officer, if a director, is willing
 to chair the meeting; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 chair of the board and the president or chief executive officer, if a director, 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 in person or by telephone 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 may participate in a meeting of the directors or of any committee of the directors by a communications medium other than telephone if all directors participating in the meeting, whether in person or by telephone or other communications medium, are able to communicate with each other and if all directors who wish to participate in the meeting agree to such participation. 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.

18.5 Calling of Meetings

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.

18.6 Notice of Meetings

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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the
 director or alternate director, as the case may be, has waived notice of the meeting.

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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.

18.10 Quorum

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 two 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 consented to in writing by all of the directors entitled to vote on it, whether by signed document, fax, email or any other method of transmitting legibly recorded messages, is as valid and effective as if it had been passed at a meeting of the directors or of the committee of the directors duly called and held. Such resolution may be in two or more counterparts which together are deemed to constitute one resolution in writing. A resolution passed in that manner is effective on the date stated in the resolution or on the latest date stated on any counterpart. A resolution of the directors or of any committee of the directors passed in accordance with this Article 18.12 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 inteNals between meetings of the board of directors, all of the directors' powers, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the power to fill vacancies
 in the board of directors;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the power to remove a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the
 power to change the membership of, or fill vacancies in, any committee of the directors;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) appoint
 one or more committees (other than the executive committee) consisting of the director or
 directors that they consider appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) delegate
 to a committee appointed under paragraph (a) any of the directors' powers, except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 power to fill vacancies in the board of directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the
 power to remove a director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the
 power to change the membership of, or fill vacancies in, any committee of the directors;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the
 power to appoint or remove officers appointed by the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) make any delegation
 referred to in paragraph (b) 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) conform to any rules that may from time
 to time be imposed on it by the directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) report every act or thing done in exercise
 of those powers at such times as the directors may require.

19.4 Powers of Board

The directors may, at any time, with respect to a committee appointed under Articles 19.1 or 19.2:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) terminate
 the appointment of, or change the membership of, the committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) fill
 vacancies in the committee.

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19.5 Committee Meetings

Subject to Article 19.3(a) 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the
 committee may meet and adjourn as it thinks proper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a
 majority of the members of the committee constitutes a quorum of the committee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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. OFFICERS

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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) determine
 the functions and duties of the officer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) revoke,
 withdraw, alter or vary all or any of the functions, duties and powers of the officer.

20.3 Qualifications

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 or chief executive officer 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 think 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.

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21. INDEMNIFICATION

21.1 Definitions

In this Article 21:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) "eligible
 penalty" means a judgment, penalty or fine awarded or imposed in, or an amount paid
 in settlement of, an eligible proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) is or may be joined as a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) is
 or may be liable for or in respect of a judgment, penalty or fine in, or expenses related
 to, the proceeding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) "expenses"
 has the meaning set out in the *Business Corporations Act;* and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) "senior
 officer" has the meaning set out in the *Business Corporations Act.* 

21.2 Mandatory Indemnification of Directors and Former Directors

Subject to the *Business Corporations Act,* the Company must indemnify a director, former director, senior officer, former senior officer or alternate director of the Company and his or her heirs and legal personal representatives (each, an "indemnitee") 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 indemnitee is deemed to have contracted with the Company on the terms of the indemnity contained in these Articles 21.2 and 21.3.

21.3 Mandatory Advancement of Expenses

The Company must pay, as they are incurred in advance of the final disposition of an eligible proceeding, the expenses actually and reasonably incurred by an indemnitee in respect of that proceeding but the Company must first receive from the indemnitee a written undertaking that, if it is ultimately determined that the payment of expenses is prohibited by the *Business Corporations Act,* the indemnitee will repay the amounts advanced.

21.4 Indemnification of Other Persons

Subject to any restrictions in the *Business Corporations Act,* the Company may indemnify any person.

**21.5** **Non-Compliance with *Business Corporations Act*** 

The failure of a director, alternate director or senior officer of the Company to comply with the *Business Corporations Act* or these Articles does not invalidate any indemnity to which he or she is entitled under this Part.

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21.6 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) is
 or was a director, alternate director, senior officer, employee or agent of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) is
 or was a director, alternate director, senior officer, employee or agent of a corporation
 at a time when the corporation is or was an affiliate of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) at
 the request of the Company, is or was a director, alternate director, senior officer, employee
 or agent of a corporation or of a partnership, trust, joint venture or other unincorporated
 entity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) at
 the request of the Company, holds or held a position equivalent to that of a director, alternate
 director or senior officer of a partnership, trust, joint venture or other unincorporated
 entity;

against any liability incurred by him or her as such director, alternate director, senior officer, employee or agent or person who holds or held such equivalent position.

22. DIVIDENDS

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.

22.3 No Notice Required

The directors need not give notice to any shareholder of any declaration under Article 22.2.

22.4 Record Date

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 directors resolution declaring a dividend may direct payment of the dividend wholly or partly by the distribution of specific assets or of fully paid shares or of bonds, debentures or, other securities of the Company, 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) set the value for distribution of specific assets;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) determine
 that cash payments in substitution for all or any part of the specific assets to which any
 shareholders are entitled may be made to any shareholders on the basis of the value so fixed
 in order to adjust the rights of all parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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 cash 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 address of the shareholder, or in the case of joint shareholders, to the 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 Surplus** 

Notwithstanding anything contained in these Articles, the directors may from time to time capitalize any 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 surplus or any part of the surplus.

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23. DOCUMENTS,
 RECORDS ANO REPORTS

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.

24. NOTICES

24.1 Method of Giving Notice

Unless the *Business Corporations Act* or these Articles provides otherwise, a notice, statement, report or other 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) mail
 addressed to the person at the applicable address for that person as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for
 a record mailed to a shareholder, the shareholder's registered address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in any other case, the
 mailing address of the intended recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) delivery
 at the applicable address for that person as follows, addressed to the person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for
 a record delivered to a shareholder, the shareholder's registered address;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) in
 any other case. the delivery address of the intended recipient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) physical
 delivery to the intended recipient.

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24.2 Deemed Receipt of Mailing

A record that is 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.

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 behalf for the Company stating that a notice, statement, report or other record was addressed as required by Article 24.1, prepaid and mailed or otherwise sent as permitted by 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 the notice to the joint shareholder first named in the central securities register in respect of the share.

24.5 Notice to 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:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) mailing
 the record, addressed to them:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) at
 the address, if any,
 supplied to the Company for that purpose by the persons claiming to be so entitled; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if
 an address referred to in paragraph (a)(2) 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.

25. SEAL

**25.1** **Who May Attest Seal** 

Except as provided in Articles 25.2 and 25.3, the Company may create a seal, and the Company's seal, if any, must not be impressed on any record except when that impression is attested by the signatures of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) any
 two directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any
 officer, together with any director;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if
 the Company only has one director, that director; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) any
 one or more directors or officers or persons as may be determined by the directors.

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**25.2** **Sealing Copies** 

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.

**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 the chair of the board or any senior officer together with the secretary, treasurer, secretary-treasurer, an assistant secretary, an assistant treasurer or an assistant secretary-treasurer 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.

**26.** **SPECIAL RIGHTS AND RESTRICTIONS ATTACHED TO SHARES** 

**26.1** **Common Shares** 

The special rights and restrictions attached to the Common shares are as follows:

(1) Each
 holder of a Common share shall be entitled to receive notice of and to attend all meetings
 of shareholders *,ot* the Company, except meetings at which only holders of other classes
 or series of shares are entitled to attend, and at all such meetings shall be
 entitled to one vote in respect of each Common share held by such holder.

(2) The
 holders of Common shares shall be entitled to receive dividends if and when declared by the
 directors.

(3) In
 the event of any liquidation, dissolution or winding-up of the Company or other distribution
 of the assets of the company among its shareholders for the purpose of winding-up its affairs,
 the holders of Common shares shall be entitled, subject to the rights of the holders of shares
 of any class ranking prior to the Common shares, to receive the remaining property or assets
 of the Company.

**26.2** **Preferred Shares** 

The directors may create different series of preferred shares with different rights and restrictions as determined by the directors.

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The special rights and restrictions attached to any series of Preferred shares are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Subject
 to the provisions of the *Business Corporations Act,* the holders of the Preferred shares
 shall not, as such, have any right to vote at a general meeting of the Company, nor shall
 they be entitled, as such, to notice of or to attend shareholders' meetings other than
 a meeting of the class of shareholders holding Preferred shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
 Preferred shares may from time to time be issued in one or more series and subject to the
 following provisions, the directors may fix from time to time before such issuance the number
 of shares that is to comprise each series and the designation, rights, privileges, restrictions
 and conditions attaching to each series of Preferred shares, including, without limiting
 the generality of the foregoing, the rate or amount of dividends or the method of calculating
 dividends, the dates of payment thereof, the redemption, purchase and *I* or
 conversion prices and terms and conditions of redemption, purchase and *I* or conversion,
 and any sinking fund or other provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) The
 Preferred shares of each series shall, with respect to the payment of dividends and the distribution
 of assets or return of capital in the event of liquidation, dissolution or winding-up of
 the Company, whether voluntary or involuntary, or any other return of capital or distribution
 of the assets of the Company among its shareholders for the purpose of winding-up its affairs,
 rank on a parity with the Preferred shares of every other series and be entitled to preference
 over the Common shares and over any other shares of the Company ranking junior to the Preferred
 shares. The Preferred shares of any series may also be given such other preferences, not
 inconsistent with these Articles, over the Preferred shares and any other shares of the Company
 ranking junior to the Preferred shares as provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) If
 any cumulative dividends or amounts payable on the return of capital in respect of a series
 of Preferred shares are not paid in full, all series of Preferred shares shall participate
 rateably in respect of such dividends and return of capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The
 Preferred shares of any series may be made convertible into Preferred shares of any other
 series or Common shares at such rate and upon such basis as the directors may determine.

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**SCHEDULE "B"**

**To Officer's Certificate dated April 20, 2022**

<u>**Directors' Resolutions**</u>

*[See attached]*

**ICANIC BRANDS COMPANY INC.**

**THE FOLLOWING ARE RESOLUTIONS OF ALL OF THE DIRECTORS OF ICANIC BRANDS COMPANY INC. (THE "COMPANY") CONSENTED TO IN WRITING BY ALL OF THE DIRECTORS OF THE COMPANY TO BE EFFECTIVE JANUARY <u>20</u>, 2022**

**Merger Agreement WHEREAS:**

A. The Company entered into a binding term sheet (the "**Term Sheet**") with LEEF Holdings, Inc. ("**LEEF**") dated August 18, 2021 pursuant to which the Company and LEEF agreed, to among other things, negotiate a definitive agreement and deal exclusively and in good faith in regards to a proposed acquisition by the Company of all the issued and outstanding shares of common stock of LEEF (each, a "**LEEF Share**");

B. The board of directors of the Company (the "**Board**") has reviewed and considered the terms of a merger agreement (the "**Merger Agreement**") among the Company, Icanic Merger Sub, Inc., the Company's wholly-owned Nevada subsidiary ("**Subco**"), LEEF and Micah Anderson (collectively, the "**Parties**"), whereby Subco will merge with and into LEEF pursuant to the provisions of the Nevada Revised Statutes ("**NRS**"), with LEEF as the surviving entity on terms more particularly set forth in the Merger Agreement (the "**Merger**");

C. Pursuant to terms and conditions of the Merger Agreement and on the Effective Date (as defined in the Merger Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. Subco shall merge with and into LEEF under the NRS, with LEEF continuing as the
surviving company subsequent to the Merger ()"**Mergeco** ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. each issued and outstanding LEEF Share, other than Dissenting Shares (as defined
in the Merger Agreement), will automatically be converted into the right to receive: (A) a number of common shares of the Company (the
" **Shares**") equal to one multiplied by the Exchange Ratio (as defined in the Merger Agreement) (the "**Closing Payment** "); and (B) the Pro Rata Share of each Earn-Out Payment (both as defined in the Merger Agreement), if any, payable pursuant
to Section 2.10 of the Merger Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. each option of LEEF (each, a "**LEEF Option**") outstanding immediately
prior to the Effective Time will be cancelled and exchanged for one option of the Company (the "**Options**") on the following
basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the number of Shares subject to the Option, rounded down to the nearest whole
share, will equal the number of LEEF Shares issuable upon exercise of the LEEF Option immediately prior to the Effective Time, multiplied
by the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the exercise price of each Option will equal the exercise price of the LEEF Option
divided by the Exchange Ratio; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the other terms and conditions of the Option will be equivalent to the terms and
conditions of the LEEF Option, including with respect to term, expiry date and vesting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. each outstanding warrant of LEEF (each, a "**LEEF Warrant**") will be assumed by the Company on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the number of Shares subject to the LEEF Warrant will equal the number of LEEF
Shares issuable upon exercise of the LEEF Warrant immediately prior to the Effective Time, multiplied by the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the exercise price of each LEEF Warrant will equal the exercise price of the LEEF
Warrant divided by the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the other terms and conditions of the LEEF Warrant will remain unchanged and will
continue to be governed by the applicable warrant certificate evidencing such LEEF Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. each share of Subco common stock issued and outstanding immediately prior to the
Effective Time shall be converted into and become one share of common stock of Mergeco such that Mergeco shall be a wholly-owned subsidiary
of the Company. As consideration for the issuance of the Payment Shares (as defined in the Merger Agreement), Mergeco shall issue the
Company one share of Mergeco common stock for each Share issued to the stockholders of LEEF as a part of the Merger; and

D. Having reviewed and considered the terms of the Merger Agreement, all of the directors of the Company consider that it is in the best interests of the Company to enter into the Merger Agreement and to consummate the transactions described therein.

**NOW THEREFORE BE IT RESOLVED THAT:**

1. The entering into the Term Sheet by the Chief Executive Officer of the Company,
a copy of which has been presented to and reviewed by the Board, be and is hereby ratified and confirmed.

2. Subject to approval from the shareholders of the Company, if applicable, the Merger
pursuant to the terms of the Merger Agreement be and is hereby approved.

3. The Merger Agreement and the terms therein, in substantially the form circulated
to the directors of the Company, be and are hereby approved and authorized by the directors of the Company, and any one director or officer
of the Company is hereby authorized to execute the Merger Agreement on behalf of the Company, to deliver the Merger Agreement to LEEF
and, if applicable, present the Merger Agreement to the shareholders of the Company for their approval.

4. Any one director or officer of the Company be and is hereby authorized and directed
to do and perform all such acts, deeds and things and to execute, under the seal of the Company or
otherwise, and deliver and to file or cause to be executed, delivered or filed in the name and on behalf of the Company or otherwise,
all such documents, forms, deeds or other writings, which they in their discretion shall deem necessary, desirable or proper in order
to give effect to the true intent of the foregoing resolutions.

5. All prior acts by an one director or officer of the Company related to the foregoing
resolutions be and are hereby approved, ratified, sanctioned, and confirmed.

*[Signature page follows]*

 

**Execution in Counterpart**

**RESOLVED** that these resolutions may be signed by the directors in as may counterparts as may be necessary, each of which so signed will be deemed to be an original (and each signed copy sent by electronic transmission, including email, facsimile or otherwise, will be deemed to be an original), and such counterparts together will constitute one and the same instrument and notwithstanding the date of execution will be deemed to bear the date set forth above.

---

| | |
|:---|:---|
| | /s/ NISHAL R. KUMAR |
| MARK SMITH | NISHAL R. KUMAR |
| /s/ SUHAS PATEL | /s/ BRANDON KOU |
| SUHAS PATEL | BRANDON KOU |
| /s/ CHRIS CHERRY | /s/ RIPAL PATEL |
| CHRIS CHERRY | RIPAL PATEL |

---

**Execution in Counterpart**

**RESOLVED** that these resolutions may be signed by the directors in as may counterparts as may be necessary, each of which so signed will be deemed to be an original (and each signed copy sent by electronic transmission, including email, facsimile or otherwise, will be deemed to be an original), and such counterparts together will constitute one and the same instrument and notwithstanding the date of execution will be deemed to bear the date set forth above.

---

| | |
|:---|:---|
| /s/ MARK SMITH | |
| MARK SMITH | NISHAL R. KUMAR |
| SUHAS PATEL | BRANDON KOU |
| CHRIS CHERRY | RIPAL PATEL |

---

**ICANIC BRANDS COMPANY INC.**

**THE FOLLOWING ARE RESOLUTIONS OF ALL OF THE DIRECTORS OF ICANIC BRANDS COMPANY INC. (THE "COMPANY") CONSENTED TO IN WRITING BY ALL OF THE DIRECTORS OF THE COMPANY TO BE EFFECTIVE APRIL 18, 2022**

**<u>Extension Agreement</u>**

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;A. On January 20, 2022, the Company approved the entering into of a merger agreement
(the "**Merger Agreement**") among LEEF Holdings, Inc. ()"**LEEF** "), Icanic Merger Sub, Inc., the Company's
wholly-owned Nevada subsidiary ()"**Subco** "), and Micah Anderson ()"**Anderson** "), pursuant to which Subco
will merge with and into LEEF pursuant to the provisions of the Nevada Revised Statutes and the Company will indirectly acquire of all
the issued and outstanding shares of common stock of LEEF (the "**Transaction** ");

&nbsp;&nbsp;&nbsp;&nbsp;B. On March 22, 2022, the Company, LEEF, Subco, and Anderson entered into an extension
agreement (the "**Extension Agreement**") pursuant to which the parties agreed to extend the Outside Date (as defined in
the Merger Agreement) by 30 days to April 21, 2022; and

&nbsp;&nbsp;&nbsp;&nbsp;C. Having reviewed and consider the terms of the Extension Agreement, the directors
consider that it is in the best interests of the Company to ratify the Extension Agreement and to consummate the transactions described
therein.

**NOW THEREFORE BE IT RESOLVED THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;1. The Extension Agreement, a copy of which has been presented to the directors, made
as of March 22, 2022 among the Company, LEEF, Subco, and Anderson, be and is hereby ratified, confirmed, and approved.

&nbsp;&nbsp;&nbsp;&nbsp;2. The execution and delivery of the Extension Agreement by Brandon Kou, Chief Executive
Officer of the Company, for and on behalf of the Company, be and is hereby ratified and confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Company be and is hereby authorized to complete the transactions and perform
all of its obligations and covenants contemplated in the Extension Agreement.

**<u>Supplemental Indenture</u>**

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;A. On June 6, 2019, LEEF, Odyssey Trust Company, in its capacity as a trustee (the
" **Trustee**") and Odyssey Trust Company, in its capacity as collateral agent (the "**Collateral Agent** "),
entered into a debenture indenture (the "**Indenture**") governing the terms of convertible senior unsecured debentures
of LEEF (the "**Debentures** ");

&nbsp;&nbsp;&nbsp;&nbsp;B. The Transaction constitutes a "Liquidity Event" under the Indenture,
entitling each holder of a Debenture to convert its Debentures into common shares in the capital of LEEF ()"**LEEF Shares** ")
at the Conversion Price (as defined in the Indenture) in accordance with Section 13.01 of the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;C. Pursuant to Sections 11.01 and 13.11 of the Indenture, upon completion of the Transaction,
each holder of Debentures will no longer have the right to receive LEEF Shares on conversion of its Debentures, but will have the right
to receive, in lieu of LEEF Shares, common shares in the capital of the Company ()"**Icanic Shares**") in accordance with
this First Supplemental Indenture (as defined herein);

&nbsp;&nbsp;&nbsp;&nbsp;D. The Company wishes to expressly assume the obligations of LEEF under the Debentures
and the Indenture and the performance or observance of every covenant and provision of the Indenture and the Debentures required on the
part of Indenture, and to enter into a first supplemental debenture indenture (the "**First Supplemental Indenture** ")
with LEEF, the Trustee, and the Collateral Agent in conjunction with the closing of the Transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;E. Having reviewed and considered the terms of the First Supplemental Indenture,
the directors of the Company have determined that it is in the best interests of the Company to enter into the First Supplemental Indenture
and to consummate the transactions described therein.

**NOW THEREFORE BE IT RESOLVED THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;1. The First Supplemental Indenture be and is hereby confirmed and approved.

&nbsp;&nbsp;&nbsp;&nbsp;2. The entering into, execution, and delivery of the First Supplemental Indenture
by any one officer or director of the Company, for and on behalf of the Company be, and is hereby authorized and approved.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Company be and is hereby authorized to complete the transactions and perform
all of its obligations and covenants contemplated in the First Supplemental Indenture.

**<u>Lock-Up Agreements</u>**

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;A. Pursuant to the terms and conditions of the Merger Agreement, each director and
officer of the Company is required to enter into a lock-up agreement (the "**Lock-Up Agreement**") with the Company, substantially
in the form attached to the Merger Agreement, pursuant to which such directors and officers are not permitted to offer or sell any equity
securities or convertible securities in the capital of the Company for a period of up to 36 months following the completion of the Transaction;
and

&nbsp;&nbsp;&nbsp;&nbsp;B. Having reviewed and considered the terms of the terms of the Lock-Up Agreement,
the directors consider that it is in the best interests of the Company to enter into the Lock-Up Agreement with each director and officer
of the Company and consummate the transactions described therein.

**NOW THEREFORE BE IT RESOLVED THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;1. The Lock-Up Agreement be and is hereby confirmed and approved.

&nbsp;&nbsp;&nbsp;&nbsp;2. The execution and delivery of the Lock-Up Agreement by any one director or officer
of the Company, for and on behalf of the Company, with each director and officer of the Company be and is hereby authorized and approved.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Company be and is hereby authorized to
 complete the transactions and perform all of its obligations and covenants contemplated in the Lock-Up Agreements.

**<u>Mark Smith Employment Agreement</u>**

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;A. In January 2022, the Company entered into an executive employment agreement (the
" **Smith Employment Agreement**") with Mark Austin Smith ()"**Smith**") pursuant to which the Company engaged
Smith as the Company's Executive Chairman;

&nbsp;&nbsp;&nbsp;&nbsp;B. On April 19<sup>th</sup>, 2022, the Company entered into an amendment to executive
employment agreement (the "**Amending Agreement**") with Smith which amended the terms of the Smith Employment Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;C. Pursuant to Section 3.2 of the Smith Employment Agreement, as amended by the Amending
Agreement, the Company agreed to pay Smith a bonus payment of USD$3,600,000 (the "**Bonus Payment**") as consideration
for facilitating the Transaction as set out in the Merger Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;D. The Bonus Payment shall be payable in fully-paid and non-assessable common shares
in the capital of the Company with an aggregate deemed issue price equal to the Bonus Payment (the "**Bonus Shares** "),
issuable at a deemed issue price per Bonus Share equal to the volume weighted average trading price of the common shares in the capital
of the Company on the Canadian Securities Exchange (the "**CSE**") for the thirty (30) trading days prior to the closing
of the Transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;E. Having reviewed and considered the terms of the Smith Employment Agreement, as
amended by the Amending Agreement, the directors of the Company have determined that it is in the best interests of the Company to ratify,
confirm and approve the execution of the Smith Employment Agreement and the Amending Agreement, approve the Bonus Payment, and the Company's
performance of its obligations thereunder.

**NOW THEREFORE BE IT RESOLVED THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;1. The Smith Employment Agreement and the Amending Agreement be and is hereby ratified,
confirmed and approved.

&nbsp;&nbsp;&nbsp;&nbsp;2. The entering into, execution, and delivery of the Smith Employment Agreement and
the Amending Agreement by any one director or officer of the Company, for and on behalf of the Company, be and is hereby ratified and
confirmed.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Company be and is hereby authorized to complete the Bonus Payment to Smith,
such Bonus Payment to be paid through the issuance of **22,748,224 Bonus Shares**, which shall be issued as fully-paid and non-assessable
common shares with a deemed issue price equal to $.19978.

&nbsp;&nbsp;&nbsp;&nbsp;4. Pursuant to the policies of the CSE, the Bonus Shares will be subject to a four-month
and a day resale restriction from the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;5. Any one director or officer of the Company be and is hereby authorized to execute
all necessary filings with the CSE.

**<u>Micah Anderson Employment Agreement</u>**

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;A. In connection with the completion of the Transaction and pursuant to the terms
and conditions of the Merger Agreement, the Company wishes to enter into an employment agreement (the "**Anderson Employment Agreement** ")
with Anderson pursuant to which the Company will engage Anderson as its Chief Executive Officer;

&nbsp;&nbsp;&nbsp;&nbsp;B. In consideration for the engagement of Anderson, the Company will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. pay Anderson an annual base salary of USD$250,000 per annum (the "**Base Salary** "),
payable in equal installments in accordance with the Company's normal payroll policy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. grant Anderson <u>7,508,259</u> Options (the "**Anderson Options**") to purchase <u>7,508,259</u> Option Shares (the "**Anderson Option Shares**") at an exercise price equal to the closing share price of the common
 shares of the Company on the CSE on the date of grant (the "**Exercise Price**") until the date that is five years
 from the date of grant. The Anderson Options will be subject
to the Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. provide Anderson with a monthly auto subsidy of USD$1,000 and a monthly travel subsidy of US$2,000 (together, the
" **Subsidies** "); and

&nbsp;&nbsp;&nbsp;&nbsp;C. Having reviewed and considered the terms of the Anderson Employment Agreement,
the directors of the Company have determined that it is in the best interests of the Company to enter into the Anderson Employment Agreement,
and to authorize and approve the grant of Anderson Options in connection therewith and the Company's performance of its obligations
thereunder.

**NOW THEREFORE BE IT RESOLVED THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;1. The Anderson Employment Agreement be and is hereby confirmed and approved.

&nbsp;&nbsp;&nbsp;&nbsp;2. The entering into, execution, and delivery of the Anderson Employment Agreement by
any one officer or director of the Company, for and on behalf of the Company be, and is hereby authorized and approved.

&nbsp;&nbsp;&nbsp;&nbsp;3. The Company be and is hereby authorized to pay the Base Salary and Subsidies to Anderson.

&nbsp;&nbsp;&nbsp;&nbsp;4. The Company be and is hereby authorized to grant 7,508,259 Anderson Options to Anderson for the purchase
of up to an aggregate of 7,508,259 Anderson Option Shares at the Exercise Price per Anderson Option Share until the date that is five
years from the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;5. Pursuant to the terms and conditions of the Plan, up to 7,508,259 Anderson Option Shares may be acquired
by Anderson upon exercise of the Anderson Options at any before the expiry of the Anderson Options (or earlier in accordance with the
terms of the Plan).

&nbsp;&nbsp;&nbsp;&nbsp;6. Up to 7,508,259 Anderson Option Shares are hereby allotted for issuance at the Exercise Price per Anderson
Option Share upon exercise of the Anderson Options described herein in whole or in part from time to time, and upon receipt by the Company
of funds for the payment of such Anderson Option Shares, and proper notice of exercise of any such Anderson Options, such Anderson Option
Shares shall be issued and any two directors or officers of the Company are hereby authorized to execute a treasury
order to direct the Company's transfer agent to issue Anderson Option Shares upon the exercise of such Options from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;7. Pursuant to policies of the CSE, the Anderson Options and any Anderson Option Shares
issued upon exercise of the Anderson Options will be subject a four-month and a day resale restriction from the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;8. Any one director or officer of the Company is authorized to execute and deliver an option certificate
representing the Anderson Options to Anderson on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;9. The particulars of such grant of Anderson Options are to be entered in the Option Register of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;10. Any one director or officer of the Company be and is hereby authorized to execute all necessary filings
with the CSE.

**<u>General Authority</u>**

**NOW THEREFORE BE IT RESOLVED THAT:**

&nbsp;&nbsp;&nbsp;&nbsp;1. Any one director or officer of the Company be authorized for and on behalf of
the Company to do such things and to execute and deliver, whether under the common seal of the Company or otherwise, all such statements,
forms, certificates, treasury orders and other documents as such director or officer may consider advisable in connection with the foregoing
and to take all such action and do all such things to give effect to the transactions contemplated by the foregoing resolutions and the
execution by any one director or officer shall be conclusive proof of his or her authority to execute the same on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;2. All prior acts by an one director or officer of the Company related to the foregoing
resolutions be and are hereby approved, ratified, sanctioned, and confirmed.

*[Signature page follows]*

**Execution in Counterpart**

RESOLVED that these resolutions may be signed by the directors in as may counterparts as may be necessary, each of which so signed will be deemed to be an original (and each signed copy sent by electronic transmission, including email, facsimile or otherwise, will be deemed to be an original), and such counterparts together will constitute one and the same instrument and notwithstanding the date of execution will be deemed to bear the date set forth above.

---

| | |
|:---|:---|
| | /s/ NISHAL R. KUMAR |
| MARK SMITH | NISHAL R. KUMAR |
| /s/ SUHAS PATEL | /s/ BRANDON KOU |
| SUHAS PATEL | BRANDON KOU |
| /s/ CHRIS CHERRY | /s/ RIPAL PATEL |
| CHRIS CHERRY | RIPAL PATEL |

---

**Execution in Counterpart**

**RESOLVED** that these resolutions may be signed by the directors in as may counterparts as may be necessary, each of which so signed will be deemed to be an original (and each signed copy sent by electronic transmission, including email, facsimile or otherwise, will be deemed to be an original), and such counterparts together will constitute one and the same instrument and notwithstanding the date of execution will be deemed to bear the date set forth above.

---

| | |
|:---|:---|
| /s/ MARK SMITH | |
| MARK SMITH | NISHAL R. KUMAR |
| SUHAS PATEL | BRANDON KOU |
| CHRIS CHERRY | RIPAL PATEL |

---

**SCHEDULE "C"**

**To Officer's Certificate dated April 20, 2022**

**<u>Certificate of Incumbency</u>**

 

---

| | | |
|:---|:---|:---|
| NAME | TITLE | **SIGNATURE** |
| Brandon Kou | Chief Executive Officer and Director | /s/ Brandon Kou |
| Christopher Cherry | Chief Financial Officer and Director | /s/ Christopher Cherry |
| Mark Smith | Executive Chairman and Director | /s/ Mark Smith |
| Suhas Patel | Director | /s/ Suhas Patel |
| Nishal Kumar | Director | /s/ Nishal Kumar |
| Ripal Patel | Director | /s/ Ripal Patel |

---

 

**<u>OFFICER'S CERTIFICATE</u>**

---

| | |
|:---|:---|
| **TO:** | **LEEF Holdings, Inc. (the "Company")** |
| **RE:** | **Merger Agreement dated January 21, 2022 by and among Icanic Brands Company Inc., the Company, Icanic Merger Sub, Inc. ("Subco") and Micah Anderson (the "Merger Agreement")** |

---

This certificate is being provided to the Company pursuant to §9.3(c) of the Merger Agreement. Capitalized terms used but not otherwise defined herein have the same meanings ascribed to such terms in the Merger Agreement.

Pursuant to §9.3(c) of the Merger Agreement, the undersigned, Suhas Patel, President, Secretary and Treasurer of Subco, hereby certifies, in such capacities and not in his personal capacity that:

1. the constating documents of Subco, attached hereto as SCHEDULE "A",
in effect immediately prior to Closing are full, true and correct copies thereof and have not been modified or rescinded as of the date
of this certificate;

2. the resolutions of the sole director of Subco dated January 20, 2022, attached
hereto as SCHEDULE "B", approving the Merger and the transactions contemplated thereby are full, true and correct copies thereof
and have not been modified or rescinded as of the date of this certificate; and

3. the person listed in SCHEDULE "C" attached hereto is the duly elected
and appointed officer of Subco and has been duly appointed to and now holds the offices set opposite his name and is duly authorized to
execute the documents contemplated by the Merger Agreement. The signature or facsimile copy thereof set opposite his name is the genuine
signature of such person.

DATED this 20 day of April, 2022.

---

| |
|:---|
| /s/ Suhas Patel |
| **Suhas Patel** |
| President, Secretary and Treasurer |

---

**SCHEDULE "A"**

**To Officer's Certificate dated April 20, 2022**

**<u>Constating Documents</u>**

*[See attached]*

 

 

![](pg651-700_001.jpg)

**SCHEDULE "B"**

**To Officer's Certificate dated April 20, 2022** 

**<u>Director's Resolutions</u>**

*[See attached]*

 

**ICANIC MERGER SUB, INC.**

**THE FOLLOWING ARE RESOLUTIONS OF THE SOLE DIRECTOR OF ICANIC MERGER SUB, INC. (THE "COMPANY") CONSENTED TO IN WRITING BY THE SOLE DIRECTOR OF THE COMPANY TO BE EFFECTIVE JANUARY** <u>20</u> **, 2022**

**Merger Agreement**

**WHEREAS:**

A. The Company wishes to enter into a merger agreement dated effective January <u>21</u> , 2022 (the "**Merger Agreement**") among the Company, Icanic Brands Company Inc. ("**Icanic**"), LEEF Holdings, Inc. ("**LEEF**") and Micah Anderson (collectively, the "**Parties**"), whereby the Company will merge with and into LEEF pursuant to the provisions of the Nevada Revised Statutes ("**NRS**"), with LEEF as the surviving entity on terms more particularly set forth in the Merger Agreement (the "**Merger**");

B. Pursuant to terms and conditions of the Merger Agreement and on the Effective Date (as defined in the Merger Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. the
 Company shall merge with and into LEEF under the NRS, with LEEF continuing as the surviving
 company subsequent to the Merger ()"**Mergeco** ");

b. each
 issued and outstanding share of common stock in the capital of LEEF (each, a "**LEEF Share**" (other than Dissenting Shares, as defined in the Merger Agreement) will
 automatically be converted into the right to receive: (A) a number of common shares of Icanic
 (the "**Shares**") equal to one multiplied by the Exchange Ratio (as defined
 in the Merger Agreement) (the "**Closing Payment** "); and (B) the Pro Rata
 Share of each Earn- Out Payment (both as defined in the Merger Agreement), if any, payable
 pursuant to Section 2.10 of the Merger Agreement;

c. each
 option of LEEF (each, a "**LEEF Option**") outstanding immediately prior to
 the Effective Time will be cancelled and exchanged for one option of Icanic (the "**Options** ")
 on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the
 number of Shares subject to the Option, rounded down to the nearest whole share, will equal
 the number of LEEF Shares issuable upon exercise of the LEEF Option immediately prior to
 the Effective Time, multiplied by the Exchange Ratio;

ii. the
 exercise price of each Option will equal the exercise price of the LEEF Option divided by
 the Exchange Ratio;

iii. the
 other terms and conditions of the Option will be equivalent to the terms and conditions of
 the LEEF Option, including with respect to term, expiry date and vesting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. each
 outstanding warrant of LEEF (each, a "**LEEF Warrant**") will be assumed by
 Icanic on the following basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. the
 number of Shares subject to the LEEF Warrant will equal the number of LEEF Shares issuable
 upon exercise of the LEEF Warrant immediately prior to the Effective Time, multiplied by
 the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. the
 exercise price of each LEEF Warrant will equal the exercise price of the LEEF Warrant divided
 by the Exchange Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. the
 other terms and conditions of the LEEF Warrant will remain unchanged and will continue to
 be governed by the applicable warrant certificate evidencing such LEEF Warrant; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. each
 share of the Company's common stock issued and outstanding immediately prior to the
 Effective Time shall be converted into and become one share of common stock of Mergeco such
 that Mergeco shall be a wholly-owned subsidiary of the Company. As consideration for the
 issuance of the Payment Shares (as defined in the Merger Agreement), Mergeco shall issue
 Icanic one share of Mergeco common stock for each Share issued to the stockholders of LEEF
 as a part of the Merger; and

C. Having reviewed and considered the terms of the Merger Agreement, the sole director of the Company considers that it is in the best interests of the Company to enter into the Merger Agreement and to consummate the transactions described therein.

**NOW THEREFORE BE IT RESOLVED THAT:**

1. Subject
 to approval from the shareholders of the Company, if applicable, the Merger pursuant to the
 terms of the Merger Agreement be and is hereby approved.

2. The
 Merger Agreement and the terms therein, in substantially the form circulated to the sole
 director of the Company, be and are hereby approved and authorized by the sole director of
 the Company, and the director is hereby authorized to execute the Merger Agreement on behalf
 of the Company, to deliver the Merger Agreement to LEEF and, if applicable, present the Merger
 Agreement to the shareholders of the Company for their approval.

3. The
 Merger is in the best interests of the Company and its shareholders, and the Merger is fair,
 from a financial point of view, to the shareholders of the Company.

4. Any
 one director or officer of the Company be and is hereby authorized and directed to do and
 perform all such acts, deeds and things and to execute, under the seal of the Company or
 otherwise, and deliver and to file or cause to be executed, delivered or filed in the name
 and on behalf of the Company or otherwise, all such documents, forms, deeds or other writings,
 which they in their discretion shall deem necessary, desirable or proper in order to give
 effect to the true intent of the foregoing resolutions.

*[Signature page follows]*

 

 

**Execution by Facsimile**

**RESOLVED** that these resolutions may be signed by the sole director and transmitted by electronic facsimile and shall be deemed to be an original and notwithstanding the date of execution shall be deemed to bear the date as set forth above.

---

| |
|:---|
| /s/ Suhas Patel |
| SUHAS PATEL |

---

**SCHEDULE "C"**

**To Officer's Certificate dated April 20, 2022**

**<u>Certificate of Incumbency</u>**

---

| | | |
|:---|:---|:---|
| **NAME** | **TITLE** | **SIGNATURE** |
| Suhas Patel | President, Secretary, Treasurer and Director | /s/ Suhas Patel |

---

<u>**OFFICER'S CERTIFICATE**</u>

---

| | |
|:---|:---|
| **TO:** | **LEEF Holdings, Inc. (the "Company")** |
| **RE:**<br>| **Merger Agreement dated January 21, 2022 by and among Icanic Brands Company Inc. (the "Purchaser"), the Company, Icanic Merger Sub, Inc. and Micah Anderson (the "Merger Agreement")** |

---

This certificate is being provided to the Company pursuant to §9.3(f) of the Merger Agreement. Capitalized terms used but not otherwise defined herein have the same meanings ascribed to such terms in the Merger Agreement.

Pursuant to §9.3(f) of the Merger Agreement, the undersigned, Brandon Kou, Chief Executive Officer of the Purchaser, hereby certifies, in such capacity and not in his personal capacity that:

1. with
 respect to the representations and warranties of the Purchaser set forth in Article 3 of
 the Merger Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the
 Purchaser Fundamental Representations are true and correct in all respects as of the Closing
 Date;

(b) the
 representations and warranties made by the Purchaser in the Merger Agreement that are qualified
 by materiality or the expression "Material Adverse Effect" are true and correct
 as of the Closing Date; and

(c) all
 other representations and warranties of the Purchaser in the Merger Agreement are true and
 correct in all material respects as of the date of the Merger Agreement and as of the Closing
 Date, in each case, except to the extent that such representation and warranty expressly
 speaks as of an earlier date, in which case such representation and warranty are true and
 correct as of such earlier date.

2. all
 of the obligations, covenants and agreements contained in the Merger Agreement and in any
 Ancillary Agreement to be fulfilled or complied with by the Purchaser at or prior to the
 Closing Date have been performed, fulfilled or complied with;

3. there
 has been no Material Adverse Change in the business, results of operations, assets, liabilities,
 financial condition or affairs of the Purchaser or any subsidiaries of the Purchaser, or
 any change that would, individually or in the aggregate, reasonably be expected to constitute
 a Material Adverse Change.

---

| | |
|:---|:---|
| DATED this 20 day of April, 2022. | /s/ Brandon Kou |
|  | **Brandon Kou** |
|  | Chief Executive Officer |

---

<u>**OFFICER'S CERTIFICATE**</u>

---

| | |
|:---|:---|
| **TO:**<br>| **LEEF Holdings, Inc. (the "Company")**<br>|
| **RE:**<br>| **Merger Agreement dated January 21, 2022 by and among Icanic Brands Company Inc. (the "Purchaser"), the Company, Icanic Merger Sub, Inc. and Micah Anderson (the "Merger Agreement")** |

---

This certificate is being provided to the Company pursuant to §9.3(k) of the Merger Agreement. Capitalized terms used but not otherwise defined herein have the same meanings ascribed to such terms in the Merger Agreement.

Pursuant to §9.3(k) of the Merger Agreement, the undersigned, Christopher Cherry, Chief Financial Officer of the Purchaser, hereby certifies, in such capacity and not in his personal capacity that:

1. the
 Purchaser's Cash balance is approximately $2.5 million

2. the
 Purchaser's liabilities as determined in accordance with IFRS excluding lease payable,
 payroll payable, derivative liability and accounts payable do not exceed US$500,000; and

3. attached
 hereto as Schedule "A" is evidence as to such liabilities.

DATED this 20 day of April, 2022.

---

| |
|:---|
| /s/ Christopher Cherry |
| **Christopher Cherry** |
| Chief Financial Officer |

---

**SCHEDULE "A"**

**To Officer's Certificate dated April 20, 2022**

**<u>Liabilities</u>**

**$223,673.06 (Block One Loan)**

![](pg651-700_002.jpg)

![](pg651-700_003.jpg)

**FIRST SUPPLEMENTAL DEBENTURE INDENTURE**

**THIS FIRST SUPPPLEMENTAL DEBENTURE INDENTURE** (the "**First Supplemental Indenture**") made as of the 20<sup>th</sup> day of April, 2022,

---

| | |
|:---|:---|
| **BETWEEN:** | **ICANIC BRANDS COMPANY INC.**, a corporation existing under the laws of the Province of British Columbia |
|  | ("**Icanic**") |
| **AND:** | **LEEF HOLDINGS, INC.**, a corporation existing under the laws of the State of Nevada |
|  | (the "**Company**") |
| **AND:** | **ODYSSEY TRUST COMPANY**, a trust company incorporated under the laws of the Loan and Trust Corporations Act (Albert) with an office in the city of Calgary in the Province of Alberta |
|  | (the "**Trustee**") |
| **AND:** | **ODYSSEY TRUST COMPANY**, a trust company incorporated under the laws of the Loan and Trust Corporations Act (Albert) with an office in the city of Calgary in the Province of Alberta |
|  | (the "**Collateral Agent**") |

---

**WHEREAS** the Company, the Trustee and the Collateral Agent entered into a debenture indenture dated June 6, 2019 (the "**Indenture**") governing the terms of convertible senior secured debentures of the Company (the "**Debentures**");

**AND WHEREAS** pursuant to a merger transaction (the "**Transaction**") between the Company and Icanic pursuant to the *Nevada Revised Statutes*, effective concurrent with the date hereof (the "**Effective Date**"), Icanic acquired all of the issued and outstanding shares of common stock of the Company (the "**Leef Shares**") in exchange for common shares in the capital of Icanic (the "**Icanic Shares**") at an exchange ratio of 12.54755 of a Icanic Share for each Leef Share (the "**Exchange Ratio**");

**AND WHEREAS** the Transaction constitutes a "Liquidity Event" under the Indenture, entitling each holder of a Debenture to convert its Debentures into Leef Shares at the Conversion Price in accordance with Section 13.01 of the Indenture;

**AND WHEREAS** pursuant to Sections 11.01 and 13.11 of the Indenture, upon completion of the Transaction, each holder of Debentures will no longer have the right to receive Leef Shares on conversion of its Debentures, but will have the right to receive, in lieu of Leef Shares, Icanic Shares in accordance with this First Supplemental Indenture;

FIRST SUPPLEMENTAL DEBENTURE INDENTURE

**AND WHEREAS** Icanic wishes to expressly assume the obligations of the Company under the Debentures and the Indenture and, other than as provided herein, the performance or observance of every covenant and provision of the Indenture and the Debentures required on the part of the Company, as required under Section 11.01 of the Indenture;

**AND WHEREAS** pursuant to Section 11.02 of the Indenture, upon completion of the Transaction and the express assumption by Icanic of the obligations of the Company under the Debentures and the Indenture, the Company shall be relieved of all obligations and covenants under the Indenture and the Debentures, other than as provided herein;

**AND WHEREAS** in order to support the specific security granted by it in support of all obligations and covenants under the Indenture and the Debentures, the Company shall continue to be a party to the Indenture for the purposes of Article 14 of the Indenture;

**AND WHEREAS** Section 10.01(b) of the Indenture provides that the Company and the Trustee may, subject to the terms and conditions therein, enter into indentures supplemental to the Indenture evidencing the succession of others to the Company and the covenants of and obligations assumed by any such successor;

**AND WHEREAS** all necessary acts and proceedings have been done and taken and all necessary resolutions have been passed to authorize the execution and delivery of this First Supplemental Indenture, and the other documents contemplated therein, by each of Icanic and the Company, to make the same effective and binding upon Icanic and the Company, as applicable;

**AND WHEREAS** each of the Trustee and the Collateral Agent has agreed to enter into this First Supplemental Indenture, and the Trustee has agreed to hold all rights, interests and benefits contained herein for and on behalf of those persons who are holders of the Debentures issued pursuant to the Indenture, as modified by this First Supplemental Indenture, from time to time;

**AND WHEREAS** the foregoing recitals are made as representations and statements of fact by Icanic and the Company and neither by the Trustee nor the Collateral Agent;

**NOW THEREFORE** that for good and valuable consideration mutually given and received, the receipt and sufficiency of which are hereby acknowledged, it is hereby covenanted, agreed and declared as follows:

**ARTICLE 1**

**DEFINITIONS AND AMENDMENTS TO INDENTURE**

**1.1** **Definitions** 

All capitalized terms not defined herein shall have the meanings given to them in the Indenture.

**1.2** **Amendments to Indenture** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This
 First Supplemental Indenture is supplemental to the Indenture, and the Indenture and this
 First Supplemental Indenture shall hereafter be read together and shall have effect, so far
 as practicable, with respect to the Indenture and the Debentures as if all the provisions
 of the Indenture and this First Supplemental Indenture were contained in one instrument.

(b) As
 of and from the date hereof, the Indenture is amended by removing the Company as a party
 to the Indenture and replacing the Company with its successor, Icanic, and making all changes
 necessary to give full and intended effect to this amendment and to ensure consistency in
 the Indenture.

FIRST SUPPLEMENTAL DEBENTURE INDENTURE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 accordance with Section 13.11 of the Indenture, and notwithstanding any other provision of
 Article 13 of the Indenture, as and from the date hereof, any holder of Debentures who exercises
 its right to convert Debentures pursuant to the Indenture and the Debentures shall be entitled
 to receive and shall accept, in lieu of Leef Shares, Icanic Shares. Upon exercise of their
 rights to convert Debentures pursuant to the Indenture, holders of Debentures will be entitled
 to convert the principal amount of their Debentures, in multiples of $1,000, into Icanic
 Shares at a Conversion Price equal to $0.12 (based on (i) a Liquidity Event Price of $1.99
 per Leef Share, discounted by 25% in accordance with Section 13.01(ii) of the Indenture and
 (ii) an Exchange Ratio of 12.54755 Icanic Shares for each Leef Share) subject to further
 adjustments in accordance with Article 13 of the Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each
 Debenture Certificate outstanding immediately prior to the Effective Date shall thereafter
 be deemed to include the amendments made hereunder. A replacement Debenture Certificate may
 be issued by Icanic in exchange for such outstanding Debenture Certificate, on substantially
 the same terms (other than modifications to reflect Icanic as the issuer of such Debenture
 Certificate, the new Conversion Price and the issuance of Icanic Shares).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The
 Indenture is and shall remain in full force and effect with regards to all matters governing
 it and the Debentures, except as the Indenture is amended, superseded, modified or supplemented
 by this First Supplemental Indenture, and the Indenture, as amended and supplemented by this
 First Supplemental Indenture, is in all respects confirmed.

**ARTICLE 2**

**SUCCESSOR CORPORATION**

**2.1** **Assumption of Obligations** 

Except as provided in Section 2.4. hereof, Icanic hereby expressly covenants and agrees to assume and does assume all of the rights, covenants, provisions and obligations of the Company in and to the Indenture, and all of the covenants, provisions and obligations of the Company under the Debentures, in each case, as and from the date of this First Supplemental Indenture. Without limiting the generality of the foregoing, from and after the date hereof, the Debentures will be valid and binding obligations of Icanic entitling the holders thereof, as against Icanic, to all rights of Debentureholders under the Indenture such that the interests of Debentureholders are not prejudiced negatively by the changes.

**2.2** **Obligations of Icanic to issue Icanic Shares** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Icanic
 hereby agrees that, in accordance with Section 13.01 of the Indenture, Icanic will issue
 and deliver Icanic Shares payable on behalf of Leef upon any holder of a Debenture's
 exercise of the right of conversion, on the basis set out in Section 1.2(c) of this First
 Supplemental Indenture, with the intent and to the extent that any and all such obligations
 of Leef in respect of the issuance and delivery of Leef Shares under the Indenture will be
 satisfied by the issuance or delivery by Icanic of Icanic Shares rather than by the issuance
 or delivery by Leef of Leef Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Where
 the Indenture refers to Leef Shares or an obligation of the Company to issue or deliver Leef
 Shares, the provisions of the Indenture will be read mutatis mutandis to reflect that Icanic
 will issue and deliver Icanic Shares and not Leef, and references to Leef having an obligation
 to issue or deliver Leef Shares will refer to Icanic having an obligation to issue or deliver
 Leef Shares.

FIRST SUPPLEMENTAL DEBENTURE INDENTURE

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any
 issuance or delivery of Icanic Shares by Icanic pursuant to this Section 2.2 will be treated,
 for the purposes of the Indenture, as if issued or delivered by Leef and will have the same
 effect under the Indenture as if made by Leef.

**2.3** **No Fractional Shares** 

In no event shall any holder of a Debenture be entitled to a fractional Icanic Share upon conversion of any Debentures. Any fractional Icanic Shares that Icanic may otherwise be required to issue to a holder of a Debenture upon conversion of the Debentures, in accordance with the terms hereof, shall be rounded down to the nearest whole number and no consideration will be paid in lieu thereof.

**2.4** **Release of the Company** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 as otherwise provided in this Section 2.4, the parties hereby expressly acknowledge and agree
 that, the Company is released from all of its rights, covenants and obligations in and to
 the Indenture, and all of its covenants and obligations under the Debentures concurrently
 with Icanic's assumption of obligations in section 2.1 of this First Supplemental Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The
 Company shall continue to be a party to the Indenture for the purposes of Article 14 of the
 Indenture and, for the avoidance of doubt, all references to "the Company" in
 Article 14 of the Indenture and in the definitions of "Security Documents", "General
 Security Agreement" and "Pledge Agreement" shall continue to read if "LEEF
 Holdings, Inc." was spelled out in full in lieu thereof.

**ARTICLE 3**

**NOTICES**

**3.1** **Notice to Icanic** 

Any notice to Icanic under the provisions of the Indenture shall be valid and effective if delivered to Icanic in accordance with Section 15.03 of the Indenture at:

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attn: Brandon Kou

Email: brandon@icaninc.com

With a copy to legal counsel at

McMillan LLP

1500 – 1055 West Georgia St.

Vancouver, BC V6E 4N7

Attention: Desmond Balakrishnan

Email : desmond.balakrishnan@mcmillan.ca

FIRST SUPPLEMENTAL DEBENTURE INDENTURE

**ARTICLE 4**

**CONFIRMATION OF INDENTURE**

**4.1** **Confirmation** 

The Indenture as amended and supplemented by this First Supplemental Indenture is in all respects confirmed.

**ARTICLE 5**

**ACCEPTANCE OF TRUST BY TRUSTEE**

**5.1** **Acceptance** 

The Trustee and Collateral Agent hereby accept the trusts in this First Supplemental Indenture declared and created and agrees to perform the same upon the terms and conditions hereinbefore set forth but subject to the provisions of the Indenture.

**ARTICLE 6**

**ADDITIONAL MATTTERS**

**6.1** **Applicable Law** 

This First Supplemental Indenture shall be construed in accordance with the laws of the Province of British Columbia and the federal laws of Canada applicable therein and shall be treated in all respects as British Columbia contracts.

**6.2** **Further Assurances** 

The parties shall, with reasonable diligence, do all such things and provide all such reasonable assurances as may be required to consummate the transactions contemplated by this First Supplemental Indenture, and each party shall provide such further documents or instruments required by the other party as may be reasonably necessary or desirable to effect the purpose of this First Supplemental Indenture and carry out its provisions.

**6.3** **Execution** 

This First Supplemental Indenture may be simultaneously executed in several counterparts, each of which when so executed shall be deemed to be an original and such counterparts together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page of this First Supplemental Indenture by facsimile or any other electronic format (including "pdf" or "tiff" files) shall be effective as delivery of a manually executed counterpart of this First Supplemental Indenture.

***{Remainder of page intentionally left blank. Signature page follows.}***

 ****

FIRST SUPPLEMENTAL DEBENTURE INDENTURE

 ****

IN WITNESS WHEREOF the parties hereto have executed these presents by the hands of their proper officers.

---

| | |
|:---|:---|
| **ODYSSEY TRUST COMPANY, as Trustee** | **ODYSSEY TRUST COMPANY, as Trustee** |
| By: |  |
| Name: |  |
| Title: |  |
| By: |  |
| Name: |  |
| Title: |  |
| **ODYSSEY TRUST COMPANY, as Collateral Agent** | **ODYSSEY TRUST COMPANY, as Collateral Agent** |
| By: |  |
| Name: |  |
| Title: |  |
| By: |  |
| Name: |  |
| Title: |  |
| **ICANIC BRANDS COMPANY INC.** | **ICANIC BRANDS COMPANY INC.** |
| By: | /s/ Brandon Kou |
| Name: | Brandon Kou |
| Title: | Chief Executive Officer |
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: | /s/ Micah Anderson |
| Name: | Micah Anderson |
| Title: | President |

---

FIRST SUPPLEMENTAL DEBENTURE INDENTURE

IN WITNESS WHEREOF the parties hereto have executed these presents by the hands of their proper officers.

---

| | |
|:---|:---|
| **ODYSSEY TRUST COMPANY, as Trustee** | **ODYSSEY TRUST COMPANY, as Trustee** |
| By: |  |
| Name: |  |
| Title: |  |
| By: |  |
| Name: |  |
| Title: |  |
| **ODYSSEY TRUST COMPANY, as Collateral Agent** | **ODYSSEY TRUST COMPANY, as Collateral Agent** |
| By: |  |
| Name: |  |
| Title: |  |
| By: |  |
| Name: |  |
| Title: |  |
| **ICANIC BRANDS COMPANY INC.** | **ICANIC BRANDS COMPANY INC.** |
| By: | /s/ Brandon Kou |
| Name: | Brandon Kou |
| Title: | Chief Executive Officer |
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: | /s/ Micah Anderson |
| Name: | Micah Anderson |
| Title: | President |

---

FIRST SUPPLEMENTAL DEBENTURE INDENTURE

IN WITNESS WHEREOF the parties hereto have executed these presents by the hands of their proper officers.

---

| | |
|:---|:---|
| **ODYSSEY TRUST COMPANY, as Trustee** | **ODYSSEY TRUST COMPANY, as Trustee** |
| By: | /s/ Dan Sander |
| Name: | Dan Sander |
| Title: | President, Corporate Trust |
| By: | /s/ Amy Douglas |
| Name: | Amy Douglas |
| Title: | Director, Corporate Trust |
| **ODYSSEY TRUST COMPANY, as Collateral Agent** | **ODYSSEY TRUST COMPANY, as Collateral Agent** |
| By: | /s/ Dan Sander |
| Name: | Dan Sander |
| Title: | President, Corporate Trust |
| By: | /s/ Amy Douglas |
| Name: | Amy Douglas |
| Title: | Director, Corporate Trust |
| **ICANIC BRANDS COMPANY INC.** | **ICANIC BRANDS COMPANY INC.** |
| By: | /s/ Brandon Kou |
| Name: | Brandon Kou |
| Title: | Chief Executive Officer |
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| By: | /s/ Amy Douglas |
| Name: | Micah Anderson |
| Title: | President |

---

FIRST SUPPLEMENTAL DEBENTURE INDENTURE

**Icanic Brands Announces the Closing of its Acquisition of 100% of LEEF Holdings, California's Premier Extraction Company**

VANCOUVER, BRITISH COLUMBIA – April 21, 2022– Icanic Brands Company, Inc. (CSE: ICAN, OTCQB: ICNAF) ("**Icanic Brands**" or the "**Company**"), a multi-state brand operator of premium cannabis brands in California, is pleased to announce that, further to its news release on January 25, 2022, the Company has acquired all of the common stock (the "**Leef Shares**") of LEEF Holdings, Inc. ("**LEEF**"), a California based extractions company pursuant to the terms of a merger agreement (the "**Merger Agreement**") among the Company, its wholly-owned subsidiary, Icanic Merger Sub, Inc. ("**Subco**") and LEEF, dated January 21, 2022 (the "**Merger**").

LEEF is one of the largest cannabis extraction companies in the state of California and is a leading provider of bulk concentrates to many of the largest brands in the state. It is led by an expert group of legacy operators with decades of experience in organic soil-based farming and sophisticated extraction practices. LEEF's manufacturing capabilities include a 12,000 square foot extraction and manufacturing facility with significant throughput and distillate extraction capability. Headquartered in Willits, California, LEEF's core manufacturing competencies include ethanol extraction (Type 6 manufacturing license), hydrocarbon extraction (Type 7 manufacturing license), and solventless extraction. LEEF has also recently received a 186.7 acre cultivation land use permit, which will make it the owner of one of the largest cannabis cultivation sites in California. The site sits on over 1,900 acres of prime California real estate. Since inception, LEEF has experienced significant year over year growth with strong and consistent gross margins and positive cash flow. From 2019 to the end of 2021, LEEF experienced revenue growth exceeding 100%. With the build out of the cultivation site, LEEF will be able to provide consistency, quality and quantity to its customers and its' margins are expected to improve as it gains vertical efficiencies with its in-house supply chain.

Micah Anderson, CEO of LEEF commented, "This is an extremely exciting milestone for LEEF and our entire team. We have all worked tirelessly to build LEEF into what it is today and I truly look forward to continuing to build shareholder value with our new partners at Icanic. I believe that our combined company is well positioned to dominate the California marketplace with our highly sophisticated manufacturing capabilities combined with our ability to continue to build the brands that we currently have and those that we will seek out. Icanic's business is highly complementary to the rest of our operations, and we are excited to work alongside their experienced management team to build a stronger company together."

"Today is a historic day for Icanic as we officially welcome Micah Anderson and the rest of the Leef Holdings team to our family. Micah has created a truly amazing business and we couldn't be more excited for this transformational acquisition that now positions the company extremely well to be a market leader in the state of California and beyond" said Brandon Kou, CEO of Icanic Brands. "The significance of this transaction cannot be understated as it finalizes the foundation that we have been building and will now allow the combined entity to take advantage of market opportunities that present themselves over the coming years that should result in some very exciting growth. I want to thank everyone on both teams for their dedication and determination during this process in seeing the transaction to a close."

**Terms of the Merger**

Pursuant to the terms of the Merger Agreement, the Company acquired all the issued and outstanding LEEF Shares in accordance with the *Nevada Revised Statutes*. In consideration for the acquisition of the LEEF Shares, Icanic issued an aggregate of 758,274,035 common shares of the Company (the "**Icanic Shares**"), resulting in former LEEF shareholders being entitled to receive approximately 12.54755 Icanic Shares for each Leef Share held. The Icanic Shares received as consideration pursuant to the Merger are subject to a contractual hold period in accordance with the terms of the Merger Agreement, with an initial one-eighth of the Icanic Shares received to be released one-year from today, and the remaining Icanic Shares to be released in equal one-eighth installments every three months thereafter. Additionally, all directors, officers and key shareholders of Icanic and LEEF have entered into lock-up agreements pursuant to which one-sixth of their Icanic Shares shall be released eighteen months from closing with the remaining Icanic Shares to be released in equal one-sixth installments every three months thereafter.

Pursuant to the terms of the Merger Agreement, former LEEF shareholders will also be entitled to receive the following contingent earn-out payments (the "**Earn-Out Payments**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. On
 July 20, 2023, an amount equal to 10% of (A) the product equal to two times the trailing
 12-months ()"**TTM**") revenue calculated for the 12-month period immediately
 following the date hereof minus (B) US$120 million (the "**First Earn-Out Payment** ");

2. On
 July 20, 2024, an amount equal to 10% of (A) the product equal to two times the TTM revenue
 calculated for the 12-month period immediately following the date that is one year from the
 date hereof minus (B) the US$120 million and minus (C) any amounts paid pursuant to the First
 Earn-Out Payment (the "**Second Earn-Out Payment** "); and

3. On
 July 20, 2025, an amount equal to 10% of (A) the product equal to two times the TTM revenue
 calculated for the 12-month period immediately following the date that is two years from
 the date hereof minus (B) US$120 million, minus (C) any amounts paid pursuant to the First
 Earn-Out Payment, minus (D) any amounts paid pursuant to the Second Earn-Out Payment (the
 "**Third Earn-Out Payment** ").

Each of the foregoing Earn-Out Payments will be satisfied in full through the issuance of Icanic Shares based on the 30-day volume weighted average trading price of the Icanic Shares on the Canadian Securities Exchange (the "**CSE**") for the period ending on the business day prior to the issuance.

Upon closing of the Merger, the Company entered into an employment agreement with Micah Anderson whereby Mr. Anderson has been appointed Chief Executive Officer of LEEF. Upon closing of the Merger and pursuant to Mr. Anderson's employment agreement, the Company granted Mr. Anderson 7,508,259 stock options of the Company (each, an "**Option**"), whereby each Option entitles the holder thereof to acquire one Icanic Share at $0.185 per Icanic Share for a period of five years from the date of issuance, vesting in 36 equal monthly installments over three years.

In connection with the Merger, the Company has issued 22,748,223 Icanic Shares at $0.19978 per Icanic Share to Mark Smith pursuant to his employment agreement as bonus payment.

**Information for Former LEEF Shareholders**

In order to receive Icanic Shares in exchange for LEEF Shares, each former LEEF shareholder (other than holders of uncertificated Leef Shares) must complete, sign, date and return (together with the certificate representing their LEEF Shares) the letter of transmittal that was mailed to them prior to closing of the Merger.

**Advisors and Counsel**

Bayline Capital Partners is acting as financial advisor to LEEF. Cassels Brock & Blackwell LLP is acting as Canadian legal advisor to LEEF and Jackson Tidus LLP is acting as US legal advisor to LEEF. McMillan LLP is acting as legal advisor to Icanic.

**About Icanic Brands Company Inc.**

Icanic Brands Company Inc. is a cannabis branded products manufacturer based in California & Nevada, the largest and most competitive cannabis markets in the world. The company's mission is to make cannabis safe and approachable - that starts with manufacturing high-quality products delivering consistent experiences.

For more information, please visit the company's website at: <u>www.icaninc.com</u>.

**ICANIC BRANDS COMPANY INC.**

Per: "Brandon Kou"

*Co-Chief Executive Officer*

 

**For further information about Icanic Brands, please contact the Company at:**

Email: <u>ir@icaninc.com</u>

***The CSE does not accept responsibility for the adequacy or accuracy of this release.***

 ****

**Disclaimer for Forward Looking Statements**

**This news release contains "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws (collectively, "forward-looking information"). Forward-looking information are often, but not always, identified by the use of words such as "seek", "anticipate", "believe", "plan", "estimate", "expect", "likely" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Forward-looking information in this news release includes, without limitation, statements relating to the ability of Icanic and LEEF to integrate their businesses following the closing of the Merger and the payment of the Earn-Out Payments. Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to the ability of the Company to execute its business plan, the continued growth of the medical and/or recreational cannabis markets in the countries in which the Company operates or intends to operate and LEEF maintaining its existing cannabis licenses. The Company considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those expressed or implied in the forward-looking information. Such risks include, without limitation: the ability of the Company to integrate the LEEF business into its existing operations and to realize the expected benefits and synergies of the Acquisition; unexpected disruptions to the operations and businesses of the Company and/or LEEF as a result of the COVID-19 global pandemic or other disease outbreaks including a resurgence in the cases of COVID-19; engaging in activities considered illegal under United States federal law; the ability of the Company to comply with applicable government regulations in a highly regulated industry; unexpected changes in governmental policies and regulations affecting the production, distribution, manufacture or use of cannabis in the United States, or any other foreign jurisdictions in which the Company intends to operate; unexpected changes in governmental policies and regulations affecting the production, distribution, manufacture or use of adult-use recreational cannabis in the United States or Canada; any change in accounting practices or treatment affecting the consolidation of financial results; any unexpected failure of LEEF to renew its licenses and permits; any unexpected failure of LEEF to maintain any of its commercial facilities; the Company's reliance on management; inconsistent public opinion and perception regarding the use of cannabis; perceived effects of medical cannabis products; adverse market conditions; the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses; costs of inputs; crop failures; litigation; currency fluctuations; competition; availability of capital and financing on acceptable terms; industry consolidation; loss of key management and/or employees; and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. For more information on the Company and the risks and challenges of their businesses, investors should review their annual filings that are available at www.sedar.com.**

**LETTER OF TRANSMITTAL OF**

**MERGER AGREEMENT**

**With Respect to Certificates Representing Capital Stock**

**of**

**LEEF Holdings, Inc., a Nevada corporation ("LEEF"), Surrendered in Connection with the Exchange of shares**

**with**

**Icanic Brands Company Inc., a British Columbia corporation ("Icanic").**

<u>Delivery Instructions</u>:

ENDEAVOR TRUST CORPORATION

(the "Depositary")

**By Mail, Registered Mail, Hand or Courier**

**702 – 777 Hornby Street**

**Vancouver, BC V6Z 1S4**

**Attn. Corporate Actions**

This Letter of Transmittal, (the "Letter of Transmittal") must be completed, signed, and delivered to the Depositary if certificates formerly representing LEEF Common Shares (defined below) are to be surrendered for issuance of common shares of Icanic Brands Company Inc. in connection with the Merger (defined below).

**THE INSTRUCTIONS INCLUDED WITH THIS LETTER OF TRANSMITTAL SHOULD BE READ CAREFULLY BEFORE YOU COMPLETE THIS LETTER OF TRANSMITTAL.**

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| | | | |
|:---|:---|:---|:---|
| **Description of LEEF Common Shares Surrendered (See Instruction 2)** | **Description of LEEF Common Shares Surrendered (See Instruction 2)** | **Description of LEEF Common Shares Surrendered (See Instruction 2)** | **Description of LEEF Common Shares Surrendered (See Instruction 2)** |
|  | <br>**Certificate Number(s)** | <br>**LEEF Common Shares** | <br>**Name(s) and Address(es) of Registered Holder(s)**<br> **(Please fill in exactly as name(s)**<br> **appear(s) on Certificate(s))** |
| **Total Shares** |  |  |  |

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**<u>Lost Instrument Declaration</u>: If any or all of your certificates representing your LEEF Common Shares are lost, stolen or destroyed, please check the following box to indicate a Lost Instrument Declaration and complete the remaining portions of and submit this Letter of Transmittal as indicated above, together with an executed Lost Instrument Certificate for Stock in the form attached hereto as <u>Exhibit A</u>. ☐**

**PLEASE READ THE ACCOMPANYING INSTRUCTIONS CAREFULLY.**

Ladies and Gentlemen:

In accordance with the Merger Agreement dated January 21, 2022 (the "Merger Agreement) among LEEF Holdings, Inc., a Nevada corporation ("LEEF"), Icanic Brands Company Inc., a British Columbia company ("Icanic"), Icanic Merger Sub, Inc., a Nevada corporation ("Subco ") and a wholly-owned subsidiary of Icanic, and Micah Anderson, solely in his capacity as representative of the stockholders of LEEF, providing for a merger (the "Merger") between LEEF and Subco pursuant to Chapter 92A of the Nevada Revised Statutes, which will result in Icanic acquiring 100% of the LEEF Common Shares in exchange for common shares of Icanic pursuant to the terms of the Merger Agreement. In accordance with the terms of the Merger Agreement, each LEEF Common Share will entitle the holder thereof to receive such number of common shares of Icanic (the "Payment Shares") equal to the Exchange Ratio (as defined in the Merger Agreement).

The certificate(s) (the "Certificate(s)") representing the LEEF Common Shares described on the preceding page are hereby surrendered to Icanic in exchange for the Payment Shares.

For each LEEF Common Share submitted, the undersigned requests that the Depositary register and deliver the Payment Shares in accordance with the instructions set forth below. Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed to such terms in the Merger Agreement, a copy of which is enclosed herewith. Additionally, the term "LEEF" will be used interchangeably herein with the term "Company" as defined in the Merger Agreement (e.g., the term "LEEF Common Share" herein will have the same meaning as "Company Common Share" in the Merger Agreement).

The stockholders of LEEF who are Eligible Holders (defined herein) and who receive Payment Shares pursuant to the Merger may elect pursuant to section 85 of the *Income Tax Act* (the "Tax Act") (and any corresponding provisions of any applicable provincial tax legislation) to defer some or all of the capital gain they would otherwise realize on the exchange of their Shares. Please refer to the Information Statement for details and Instruction 8.

The undersigned understands that in order to receive the Payment Shares to which the undersigned is entitled, the undersigned is required to deliver:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) this Letter of Transmittal,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Certificates with respect to <u>all</u> LEEF Common Shares recorded in the undersigned's name on the books of LEEF,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a form W-9 in the form attached hereto as <u>Exhibit B</u>, or an appropriate Form W-8BEN or W-8BEN-E, as applicable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if you are a U.S. Resident Holder,\* a completed U.S. Representation Letter in the form attached hereto as <u>Exhibit C</u>, <u>but only to the extent you did not previously deliver such U.S. Representation Letter in connection with the solicitation of written consents to the Merger</u>.

\* "U.S. Resident Holder" means (i) a U.S. Person as defined in Rule 902(k) of Regulation S under the U.S. Securities Act of 1933, as amended, (ii) any person acquiring the securities on behalf of, or for the account or benefit of any U.S. Person or any person in the United States, (iii) any person who is resident in the United States as of the record date for the special meeting of the shareholders of LEEF or was in the United States at the time when such person received the solicitation materials for the written consent of the stockholders of LEEF with respect to the Merger**,** or (iv) any person who is resident in the United States or was in the United States at the time when such person completed and delivered the written consent of the stockholders of LEEF with respect to the Merger.

The undersigned understands that the surrender of any Certificate shall not be deemed to have been in acceptable form until the Depositary receives this Letter of Transmittal properly completed and signed, together with all required documents, in form reasonably satisfactory to the Depositary, Icanic and LEEF. All questions as to the documents, validity, form, eligibility and acceptance for payment of any Certificate surrendered pursuant to any of the procedures described herein will be determined by Icanic and LEEF.

The undersigned hereby irrevocably constitutes Icanic, or its designee or appointee, the undersigned's true and lawful attorney-in-fact with respect to any and all Certificates surrendered herewith to deliver any and all of such Certificates together with all accompanying evidences of authority against receipt therefor (as the undersigned's agent) of the Payment Shares as provided in the Merger Agreement and in this Letter of Transmittal (such power of attorney being deemed a power coupled with an interest).

No interest will accrue on any amounts payable hereunder.

By completion and delivery of this Letter of Transmittal, the undersigned hereby expressly represents and warrants (severally and not jointly with other Company Stockholders) to LEEF and Icanic as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) As
 of the date hereof, the undersigned is, and as of the effective date of the Merger (the " <u>Effective Date</u> ") the undersigned was or will be, the registered holder of the LEEF Common
 Shares, with good title to the LEEF Common Shares and full power and authority to sell, assign,
 and transfer the LEEF Common Shares represented by the Certificate(s), free and clear of
 all liens, claims, restrictions, charges, and encumbrances of any kind whatsoever and not
 subject to any adverse claim. The undersigned, upon request, will execute and deliver any
 additional documents reasonably necessary or desirable to complete the proper surrender of
 the Certificate(s). All authority conferred or agreed to be conferred in this Letter of Transmittal
 shall be binding upon the successors, assigns, heirs, executors, administrators, and legal
 representatives of the undersigned and shall not be affected by, and shall survive, the death
 or incapacity of the undersigned.

(ii) The
 undersigned has the full legal right, power, and authority to execute and deliver this Letter
 of Transmittal and deliver the Certificates evidencing the above-listed LEEF Common Shares
 and that this Letter of Transmittal has been duly and validly executed and delivered by the
 undersigned and constitutes a legal, valid, and binding obligation of the undersigned, enforceable
 in accordance with its terms, except as such enforceability may be limited by bankruptcy,
 insolvency, fraudulent conveyance, reorganization, moratorium, or other similar laws now
 or hereafter in effect relating to creditors' rights generally and by general equitable
 principles (regardless of whether enforceability is considered in a proceeding in equity
 or at law).

(iii) The
 execution and delivery of this Letter of Transmittal has been duly authorized by all necessary
 action (including, without limitation, if the undersigned is a corporation, approval by its
 board of directors and, if necessary, stockholders, as the case may be, and if the undersigned
 is a partnership, approval by its general partner or limited partners, as the case may be)
 on the part of the undersigned, if any, and this Letter of Transmittal constitutes a valid
 and binding obligation of the undersigned, enforceable against him, her, or it in accordance
 with its terms.

(iv) The
 undersigned has read the Merger Agreement, and has been given the opportunity to ask LEEF
 questions and consult with legal counsel regarding the terms thereof.

**<u>INSTRUCTIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Guarantee of Signatures**. Signatures on this Letter of Transmittal (refer to the signature box on page 7 hereof) need not be guaranteed: (a) if this Letter of Transmittal is signed by the registered holder(s) of the Certificate(s) transmitted herewith and such holder(s) has (have) not completed the instruction entitled "Special Payment and Delivery Instruments" on page 7 of this Letter of Transmittal or (b) if such Certificates are transmitted for the account of an Eligible Institution (as hereinafter defined). In all other cases, all signatures on this Letter of Transmittal must be guaranteed by a financial institution (including most banks, savings and loan associations and brokerage houses) that is a participant in the Securities Transfer Agents Medallion Program, the New York Stock Exchange Medallion Signature Program or the Stock Exchange Medallion Program (each of the foregoing, an "Eligible Institution"). See Instruction 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Delivery of Letter of Transmittal and Certificates; Lost Certificates**. Certificates surrendered, as well as a properly completed and duly executed Letter of Transmittal, any required signature guarantees and any other documents required by this Letter of Transmittal, must be delivered to Endeavor Trust Corporation at its address set forth on the cover of this Letter of Transmittal. In the event that any Certificate of the undersigned has been lost or destroyed, the undersigned should so indicate by checking the box on the face of this Letter of Transmittal and complete and sign the Lost Instrument Certificate for Stock attached to this Letter of Transmittal as <u>Exhibit A</u>. Delivery of this Lost Instrument Certificate or another instrument reasonably satisfactory to the Depositary and Icanic pursuant to which the undersigned agrees to indemnify the Depositary, Icanic and LEEF against any claim that may be made against Icanic or LEEF with respect to any lost or destroyed Certificate is required for any such lost or destroyed Certificate. All questions as to the documents, validity, form, eligibility, and acceptance for payment of any Certificate surrendered pursuant to any of the procedures described herein will be determined by Icanic, and its reasonable determination shall be final and binding. Delivery of any Certificate surrendered hereby shall be effected and risk of loss and title to such Certificate shall pass only upon proper delivery thereof to the Depositary. **Delivery of documents to an address other than the address as set forth on the cover of this Letter of Transmittal does not constitute delivery to the Depositary.** The delivery and surrender of a Certificate will be deemed made only when this Letter of Transmittal and any other documents required in connection therewith are actually received by the Depositary.

**The method of delivery of Certificates and other required documents is at the option and risk of the tendering holder. If sent by mail, registered mail with return receipt requested is recommended.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Inadequate Space**. If the space provided herein is inadequate, the Certificate numbers and/or the number of LEEF Common Shares should be listed on a separate signed schedule and attached hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Signatures on Letter of Transmittal, Stock Powers, and Endorsements**. If this Letter of Transmittal is signed by the registered holder(s) of the Certificate(s) transmitted hereby, the signature(s) must correspond with the name(s) as written on the face of the Certificate(s) without alteration, enlargement or any change whatsoever.

If any Certificate transmitted hereby is held of record by two or more joint holders, all such holders must sign this Letter of Transmittal.

If any Certificate transmitted hereby is registered in a different name than any other Certificate transmitted hereby, it will be necessary to complete, sign and submit as many separate Letters of Transmittal as there are different registrations of Certificates.

When this Letter of Transmittal is signed by the registered holder(s) of the Certificate(s) listed and transmitted hereby, no endorsements of certificates or separate stock powers or signature guarantees are required. If, however, this Letter of Transmittal is signed by a person other than the registered holder(s), then the Certificate(s) transmitted hereby must be endorsed or accompanied by appropriate stock powers. An Eligible Institution must guarantee all signatures on such Certificates or stock powers and on this Letter of Transmittal if special payment instructions are given.

If this Letter of Transmittal or any Certificate is signed by trustees, executors, administrators, guardians, attorneys-in-fact, officers of corporations or others acting in a fiduciary or representative capacity, such persons should so indicate when signing, and proper evidence satisfactory to Icanic of this authority so to act must be submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Special Payment and Delivery Instructions**. If any certificate for Payment Shares issued (each, an "Exchange Certificate") is to be sent to someone other than the signer of this Letter of Transmittal or to an address other than the address completed in the signature box on page 7 hereof, the appropriate boxes on this Letter of Transmittal should be completed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Requests for Assistance and Additional Copies**. Requests for assistance may be directed prior to the Effective Date to LEEF at 175 N. Lenore Avenue, Willits, CA 95490 (Attention: Kevin Wilson) and after the Effective Date to Icanic at 789 West Pender Street, Suite 810, Vancouver, BC V6C 1H2 (Attention: Chief Executive Officer) or at any time to the broker, dealer, commercial bank, or trust company of the undersigned. Additional copies of this Letter of Transmittal and related documentation may be obtained from the Depositary at 702 -777 Hornby Street Vancouver BC V6Z 1S4, attention: Corporate Actions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Form W-9 and/or W-8BEN**. Each tendering holder is required to provide the Depositary with a correct taxpayer identification number ("TIN"), generally the holder's social security or federal employer identification number. Each tendering holder that is a natural person and US tax resident may use the Form W-9, which is attached hereto. Each tendering holder that is an entity or that is not a US tax resident should complete and submit the Form W-8BEN for W-8BEN-E, as applicable. Each tendering holder completing the attached Form W-9 must cross out item (2) in the certification box on the Form W-9 if such tendering holder is subject to backup withholding. Failure to provide the information on the form (or in a form W-8BEN or W- 8BEN-E, as applicable) may subject the tendering holder to federal income tax withholding on the payments made to the holder or other payee with respect to the Certificate surrendered hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Tax Election for Eligible Holders**. A beneficial owner of LEEF Common Shares who is an Eligible Holder (as defined below) and who receives Payment Shares pursuant to the Merger may be entitled to make a joint tax election under section 85 of the Tax Act or corresponding provisions of any applicable provincial tax legislation (each one a "Section 85 Election") with Icanic as described in the Information Statement under the heading, "Certain Canadian Federal Income Tax Considerations " if the box below is checked. See further instructions in Exhibit D.

An "Eligible Holder" means a beneficial owner of the LEEF Common Shares immediately prior to the Effective Time (other than with respect to Dissenting Shares) who is (a) a resident of Canada for purposes of the Tax Act (other than a Tax Exempt Person), or (b) a partnership any member of which is a resident of Canada for the purposes of the Tax Act (other than a Tax Exempt Person).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. No Conditional Surrender**. No alternative, conditional or contingent surrender of Certificates will be accepted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. Miscellaneous and Inquires. All inquiries regarding the surrender of shares and this Letter of Transmittal should be directed to Endeavor Trust Corporation at 604-559-8880 702 – 777 Hornby Street Vancouver, BC V6Z 1S4, Attn: Corporate Actions.**

***Privacy Notice:*** *Endeavor Trust Corporation is committed to protecting your personal information. In the course of providing services to you and our corporate clients, we receive non-public personal information about you – from transactions we perform for you, forms you send us, other communications we have with you or your representatives, etc. This information could include your name, address, social insurance number, securities holdings and other financial information. We use this to administer your account, to better serve your and our clients' needs and for other lawful purposes relating to our services. Some of your information may be transferred to servicers in the U.S.A. for data processing and/or storage. Endeavor Trust Corporation will use the information you are providing in order to process your request and will treat your signature(s) as your consent to us so doing.*

 

 

 

**1. SIGN HERE**

**Also complete Form W-9 (or Form W-8BEN or W-8BEN-E, as Applicable)**

Signature(s) of Holder(s): <br>  

Dated: ______ , 2022

(Must be signed by registered holder(s) exactly as name(s) on stock certificate(s) or by person(s) authorized to become registered holder(s) by certificates and documents transmitted herewith. If signature is by an officer of a corporation, attorney-in-fact, executor, administrator, trustee, guardian or other person(s) acting in a fiduciary or representative capacity, please set forth full title and see Instruction 4.)

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| | |
|:---|:---|
| Name(s): | |
|  | (Print Name) |

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Capacity (Full Title):  

Address:

Area Code and Telephone No: _____________

Email Address: _____________

Taxpayer Identification or Social Security Number: _____________

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| | |
|:---|:---|
| &nbsp;&nbsp;**SPECIAL DELIVERY INSTRUCTIONS** | &nbsp;&nbsp;**SPECIAL DELIVERY INSTRUCTIONS** |
| &nbsp;&nbsp;**(See Instructions 1, 4 and 5)** | &nbsp;&nbsp;**(See Instructions 1, 4 and 5)** |
| &nbsp;&nbsp;To be completed <u>ONLY</u> if the Exchange Certificate is to be sent to someone other than the registered holder or to the registered holder at an address other than that above. | &nbsp;&nbsp;To be completed <u>ONLY</u> if the Exchange Certificate is to be sent to someone other than the registered holder or to the registered holder at an address other than that above. |
| &nbsp;&nbsp;Mail Exchange Certificate to: | &nbsp;&nbsp;Mail Exchange Certificate to: |
| &nbsp;&nbsp;Name: |  |
|  | &nbsp;&nbsp;(Please Print) |
| &nbsp;&nbsp;Address: |  |
|  | &nbsp;&nbsp;(Zip Code) |
| &nbsp;&nbsp;Email address: | &nbsp;&nbsp;Email address: |
| &nbsp;&nbsp;(Taxpayer Identification or Social Security No.): _____________ | &nbsp;&nbsp;(Taxpayer Identification or Social Security No.): _____________ |

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| |
|:---|
| &nbsp;&nbsp;**GUARANTEE OF SIGNATURE(S)**<br> **(If Required—See Instructions 1 and 4)** |
| &nbsp;&nbsp;Authorized Signature: _____________________________________ |
| &nbsp;&nbsp;Name(s): _______________________________________________ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Please Print) |
| &nbsp;&nbsp;Name of Firm: ____________________________________________ |
| &nbsp;&nbsp;Address: _______________________________________________ |
| &nbsp;&nbsp;Area Code and Telephone No.: _______________ Dated: __________ |

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| |
|:---|
| &nbsp;&nbsp;**TAX DEFERRAL ELECTION FOR ELIGIBLE HOLDERS UNDER SECTION 85 OF THE TAX ACT** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;☐ Check this box if the beneficial owner of the LEEF Common Shares represented by the shares listed in this Letter of Transmittal (a) is an "Eligible Holder" entitled to make a Section 85 Election with Icanic, and (b) may wish to make the Section 85 Election with Icanic for the Eligible Holder's LEEF Common Shares disposed of under the Merger. |
| &nbsp;&nbsp;Each Eligible Holder should consult the holder's own tax advisor as to whether the holder should make a Section 85 Election and the procedures for doing so. **It is the Eligible Holder's responsibility to take the steps required to make a valid Section 85 Election.** |

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**REMEMBER TO ENCLOSE:**

☐ **either** (A) the Certificates representing your LEEF Common Shares or (B) a Lost Instrument Certificate for Stock in the form attached hereto as <u>Exhibit A</u>;

☐ a Form W-9 in the form attached hereto as <u>Exhibit B</u>, or an appropriate Form W-8BEN or W-8BEN-E, as applicable, also attached hereto as <u>Exhibit B</u>; and

**☐** if you are a U.S. Resident Holder <u>and did not previously complete and submit the attached U.S. Representation Letter with your written consent</u>, a fully completed U.S. Representation Letter in the form attached hereto as <u>Exhibit C</u>.

**IMPORTANT TAX INFORMATION**

Under federal tax law, a holder who transmits any Certificate hereby is required by law to provide Icanic with such holder's correct TIN. If such holder is an individual, the TIN is his or her social security number. If Icanic is not provided with the correct TIN, the holder or other payee may be subject to a $50 penalty imposed by the Internal Revenue Service. In addition, payments that are made to such holder or other payee with respect to any Certificate may be subject to backup withholding.

Certain holders (including, among others, all corporations and certain foreign individuals) are not subject to these backup withholding and reporting requirements. In order for a foreign individual to qualify as an exempt recipient, that holder must submit to Icanic a properly completed Internal Revenue Form W-8BEN or W-8BEN-E, as applicable, signed under penalties of perjury, attesting to that holder's exempt status. A Form W-8BEN and W-8BEN-E are each attached hereto as <u>Exhibit B</u>.

If backup withholding applies, Icanic is required to withhold the applicable percentage of any payments made to the holder or other payee. Backup withholding is not an additional tax. Rather, the federal income tax liability of persons subject to backup withholding will be reduced by the amount of tax withheld. If withholding results in an overpayment of taxes, a refund may be obtained from the Internal Revenue Service.

**Purpose of Form W-9**

To prevent backup withholding on payments made to a holder or other payee with respect to any Certificate, the holder is required to notify Icanic of the holder's correct TIN by completing the form W-9 attached hereto, certifying that the TIN provided on Form W-9 is correct (or that such holder is awaiting a TIN) and that (1) the holder has not been notified by the Internal Revenue Service that the holder is subject to backup withholding as a result of failure to report all interest or dividends, (2) the Internal Revenue Service has notified the holder that the holder is no longer subject to backup withholding or (3) the holder is a

U.S. person (including a U.S. resident alien).

**What Number to Give Icanic**

The holder is required to give Icanic the TIN (e.g., social security number or employer identification number) of the record owner of each Certificate. If a Certificate is in more than one name or is not in the name of the actual owner, the undersigned should consult the Instructions to Form W-9, attached to this Letter of Transmittal as <u>Exhibit B</u> for additional guidance on which number to report.

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| | |
|:---|:---|
| **NOTE:** | **Failure to complete and return a Substitute Form W-9 (or a Form W-8BEN or W-8BEN-E, as applicable) may result in backup withholding of the applicable percentage of any payments made to the undersigned in connection with the Exchange. The undersigned should review the Instructions to Form W-9 attached to this Letter of Transmittal as Exhibit B. Instructions for completing Form W-8BEN and W-8BEN-E, as applicable, are available on the IRS's website as set forth at the top of Forms W-8BEN and W-8BEN-E.** |

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<u>**Exhibit A**</u>

**LOST INSTRUMENT CERTIFICATE FOR STOCK**

The undersigned hereby certifies that the undersigned is the sole owner and recordholder of ________ shares of Common Stock of LEEF Holdings, Inc., a Nevada corporation (the "Company"), being represented by certificate number(s) _________________; that the undersigned has never endorsed, delivered, transferred, assigned or otherwise disposed of such securities or such certificate in any manner that would give any other person any interest therein; that the undersigned has searched diligently for such certificate but has been unable to locate it; and that such certificate has been lost or destroyed.

In order to induce the Company to issue a new certificate to replace the aforesaid certificate (s) and/or to accept this Lost Instrument Certificate for Stock in lieu of the surrender of such other certificate(s), the undersigned agrees to indemnify, defend, and hold harmless the Company, Icanic Brands Company Inc. and Endeavor Trust Corporation and their respective stockholders, directors, officers, and agents from and against any and all claims, losses or damages whatsoever arising out of or related in any manner to the aforesaid instrument that has been lost or destroyed.

Dated: ___________________

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| |
|:---|
| *If individual:* |
| *(signature)* |
| Print Name: ______________________________________ |
| *If entity:* |
| *(Name of entity)* |
| By |
| Name: |
| Title: |

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<u>**Exhibit B**</u>

**FORM W-9 (AND INSTRUCTIONS THERETO)**

**AND**

**FORM W-8BEN AND W-8BEN-E**

(attached hereto)

![](pg651-700_004.jpg)

![](pg651-700_005.jpg)

![](pg651-700_006.jpg)

![](pg651-700_007.jpg)

![](pg651-700_008.jpg)

![](pg651-700_009.jpg)

![](pg651-700_010.jpg)

![](pg651-700_011.jpg)

![](pg651-700_012.jpg)

![](pg651-700_013.jpg)

![](pg651-700_014.jpg)

![](pg651-700_015.jpg)

![](pg651-700_016.jpg)

![](pg651-700_017.jpg)

![](pg651-700_018.jpg)

<u>**Exhibit C**</u>

**U.S. REPRESENTATION LETTER**

**(U.S. RESIDENT HOLDERS ONLY)**

(attached hereto)

\* "U.S. Resident Holder" means (i) a U.S. Person as defined in Rule 902(k) of Regulation S under the U.S. Securities Act of 1933, as amended, (ii) any person acquiring the securities on behalf of, or for the account or benefit of any U.S. Person or any person in the United States, (iii) any person who is resident in the United States as of the record date for the special meeting of the) LEEF or was in the United States at the time when such person received the solicitation for written consents of the stockholders of LEEF with respect to the Transaction, or (iv) any person who is resident in the United States or was in the United States at the time when such person completed and delivered the written consent of the stockholders of LEEF with respect to the Merger.

**U.S. Representation Letter**

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| | |
|:---|:---|
| **To:** | **Icanic Brands Company Inc. ("Icanic")** |
| **Re:** | **Merger Agreement dated January 21, 2022 (the "Merger Agreement") between Icanic and Leef Holdings, Inc. ("Leef")** |

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Upon the completion of the acquisition by Icanic of Leef by way of a merger (the "**Merger**") contemplated by the Merger Agreement, Leef shall become a wholly-owned subsidiary of Icanic. Pursuant to the Merger, the undersigned holder of shares of common stock of Leef ("**Leef Shares**") will receive common shares of Icanic in exchange for the shareholder's Leef Shares (the "**Icanic Shares**").

This Representation Letter is to be executed and delivered by each holder of Leef Shares or securities convertible into Leef Shares (collectively, "**Leef Securities**") who is, or is acting for the account or benefit of, a U.S. Person or a person within the United States (each, an "**Leef U.S. Securityholder**").

The undersigned holder of Leef Securities covenants, represents and warrants to Icanic that:

(a) It
 has full right, power and authority to deliver its Leef Securities and this Representation
 Letter.

(b) It
 has such knowledge, skill and experience in financial, investment and business matters as
 to be capable of evaluating the merits and risks of an investment in the Icanic Shares or
 securities convertible into the common shares of Icanic (the "**Consideration Securities** ")
 to be issued to it pursuant to the Merger, and it is able to bear the economic risk of loss
 of its entire investment. To the extent necessary, the Leef U.S. Securityholder has retained,
 at his or her own expense, and relied upon, appropriate professional advice regarding the
 investment, tax and legal merits and consequences of the Merger Agreement and owning the
 Consideration Securities.

(c) Icanic
 has provided to it the opportunity to ask questions and receive answers concerning the terms
 and conditions of the Merger Agreement and it has had access to such information concerning
 Icanic as it has considered necessary or appropriate in connection with its investment decision
 to acquire the Consideration Securities, including disclosure document(s) furnished to the
 Leef U.S. Securityholder in connection with the solicitation of written consents of the shareholders
 of Leef to approve the Merger, and access to Icanic's public filings available on the
 Internet at <u>www.sedar.com</u>, and that any answers to questions and any request for information
 have been complied with to the Leef U.S. Securityholder's satisfaction.

(d) It
 is acquiring the Consideration Securities for its own account, for investment purposes only
 and not with a view to any resale or distribution and, in particular, it has no intention
 to distribute either directly or indirectly the Consideration Securities in the United States
 or to, or for the account or benefit of, a U.S. Person or a person in the United States;
 provided, however, that this paragraph shall not restrict the Leef U.S. Securityholder from
 selling or otherwise disposing of the Consideration Securities pursuant to registration thereof
 pursuant to the *United States Securities Act of 1933*, as amended, and the rules and
 regulations promulgated thereunder (the "**U.S. Securities Act**") and any
 applicable state securities laws or under an exemption from such registration requirements.

(e) The
 address of the Leef U.S. Securityholder set out in the signature block below is the true
 and correct principal address of the Leef U.S. Securityholder and can be relied on by Icanic
 for the purposes of state blue sky laws, and the Leef U.S. Securityholder is not an entity
 that has been formed for the specific purpose of purchasing or acquiring the Securities.

(f) It
 understands (i) the Consideration Securities have not been and will not be registered under
 the U.S. Securities Act or the securities laws of any state of the United States; and (ii)
 the offer and sale contemplated by the Merger Agreement is being made in reliance on an exemption
 from such registration requirements in reliance on Rule 506(b) of Regulation D and/or Section
 4(a)(2) of the U.S. Securities Act.

(g) The
 Leef U.S. Securityholder is an "accredited investor" as defined in Rule 501(a)
 of Regulation D under the U.S. Securities Act by virtue of meeting one of the criteria set
 forth in **Appendix A** hereto (**please initial on the appropriate lines on Appendix A**), which Appendix A forms an integral part hereof.

(h) The
 Leef U.S. Securityholder has not purchased the Consideration Securities as a result of any
 form of "general solicitation" or "general advertising" (as those
 terms are used in Regulation D under the U.S. Securities Act), including advertisements,
 articles, press releases, notices or other communications published in any newspaper, magazine
 or similar media or on the Internet, or broadcast over radio or television, or the Internet
 or other form of telecommunications, including electronic display, or any seminar or meeting
 whose attendees have been invited by general solicitation or general advertising.

(i) It
 understands and agrees that the Consideration Securities may not be acquired in the United
 States or by a U.S. Person or on behalf of, or for the account or benefit of, a U.S. Person
 or a person in the United States unless registered under the U.S. Securities Act and any
 applicable state securities laws or unless an exemption from such registration requirements
 is available.

(j) It
 acknowledges that it is not acquiring the Consideration Securities as a result of, and will
 not itself engage in, any "directed selling efforts" (as defined in Regulation
 S under the U.S. Securities Act) in the United States in respect of the Consideration Securities
 which would include any activities undertaken for the purpose of, or that could reasonably
 be expected to have the effect of, conditioning the market in the United States for the resale
 of the Consideration Securities.

(k) If
 it is entitled to receive share purchase warrants or options convertible into Icanic Shares
 under the Merger Agreement, it acknowledges and agrees that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i) the
 securities of Icanic issuable upon exercise of such warrants or options convertible into
 Icanic Shares (the "**Icanic Underlying Securities**" and together with the
 Consideration Securities, the "**Securities**") have not been and will not
 be registered under the U.S. Securities Act or any state securities laws; and

ii) such warrants or options convertible into Icanic Shares may not be exercised in the United States, or for the account or benefit of a U.S. Person or a person in the United States, absent an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

(l) It
 acknowledges that the Securities will be "restricted securities", as such term
 is defined in Rule 144(a)(3) under the U.S. Securities Act, and may not be offered, sold,
 pledged, or otherwise transferred, directly or indirectly, without prior registration under
 the U.S. Securities Act and applicable state securities laws, and it agrees that if it decides
 to offer, sell, pledge or otherwise transfer, directly or indirectly, any of the Securities,
 it will not offer, sell or otherwise transfer, directly or indirectly, the Securities except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 Icanic;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) outside
 the United States in an "offshore transaction" meeting the requirements of Rule
 904 of Regulation S under the U.S. Securities Act, if available, and in compliance with applicable
 local laws and regulations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in
 compliance with the exemption from the registration requirements under the U.S. Securities
 Act provided by Rule 144 thereunder, if available, and in accordance with any applicable
 state securities or "blue sky" laws; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in
 a transaction that does not require registration under the U.S. Securities Act or any applicable
 state securities laws governing the offer and sale of securities,

and, in the case of each of (ii) and (iii) above, it has prior to such sale furnished to Icanic an opinion of counsel in form and substance reasonably satisfactory to Icanic stating that such transaction is exempt from registration under applicable securities laws and that the legend referred to in paragraph (m) below may be removed.

(m) The
 certificates representing the Securities, as well as all certificates issued in exchange
 for or in substitution of the foregoing, until such time as the same is no longer required
 under the applicable requirements of the U.S. Securities Act or applicable state securities
 laws and regulations, will bear, on the face of such certificate, the following legend:

"THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA."

provided, that if at the time of original issuance of the Securities, Icanic is a "foreign issuer" (as such term is defined in Rule 902(e) of Regulation S under the U.S. Securities Act), and are being sold outside the United States in compliance with the requirements of Rule 904 of Regulation S and in compliance with Canadian local laws and regulations, the legend set forth above may be removed by providing to the registrar and transfer agent of Icanic:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) an
 executed declaration and undertaking in substantially the form set forth as Appendix B attached
 hereto (or in such other forms as Icanic may prescribe from time to time);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an
 executed broker affirmation, in substantially the form included in Appendix B attached hereto
 (or in such other forms as Icanic may prescribe from time to time); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if
 requested by Icanic or the transfer agent, an opinion of counsel of recognized standing in
 form and substance reasonably satisfactory to Icanic and the transfer agent to the effect
 that such sale is being made in compliance with Rule 904 of Regulation S; and

provided, further, that, if any Securities are being sold otherwise than in accordance with Regulation S and other than to Icanic, the legend may be removed by delivery to the registrar and transfer agent and Icanic of an opinion of counsel of recognized standing, in form and substance reasonably satisfactory to Icanic, that such legend is no longer required under applicable requirements of the U.S. Securities Act or state securities laws.

(n) It
 understands and agrees that there may be material tax consequences to the Leef U.S. Securityholder
 of an acquisition, holding or disposition of any of the securities of Icanic. Icanic gives
 no opinion and makes no representation with respect to the tax consequences to the Leef U.S.
 Securityholder under United States federal, state, local or other tax laws of the undersigned's
 acquisition, holding or disposition of such securities.

(o) It
 consents to Icanic making a notation on its records or giving instructions to any transfer
 agent of Icanic in order to implement the restrictions on transfer set forth and described
 in this Representation Letter and the Merger Agreement.

(p) It
 understands that (i) Icanic may be deemed to be an issuer that is, or that has been at any
 time previously, an issuer with no or nominal operations and no or nominal assets other than
 cash and cash equivalents (a "**Shell Company** "), (ii) if Icanic is deemed
 to be, or to have been at any time previously, a Shell Company, Rule 144 under the U.S. Securities
 Act may not be available for resales of the Securities unless the requirements of Rule 144(i)
 under the U.S. Securities Act are met, and (iii) Icanic will not be obligated to make Rule
 144 under the U.S. Securities Act available for resales of the Securities.

(q) It
 understands and agrees that the financial statements of Icanic have been prepared in accordance
 with International Financial Reporting Standards and therefore may be materially different
 from financial statements prepared under U.S. generally accepted accounting principles and
 therefore may not be comparable to financial statements of United States companies.

(r) It
 understands and acknowledges that Icanic is incorporated outside the United States, consequently,
 it may be difficult to provide service of process on Icanic and it may be difficult to enforce
 any judgment against Icanic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) It
 understands that Icanic will not have any obligation to register the Securities under the
 U.S. Securities Act or any applicable state securities or "blue sky" laws or
 to take action so as to permit resales of such Securities. Accordingly, the Leef U.S. Securityholder
 understands that absent registration, it may be required to hold the Securities indefinitely.
 As a consequence, the Leef U.S. Securityholder understands it must bear the economic risks
 of the investment in such Securities for an indefinite period of time.

The foregoing representations contained in this certificate are true and accurate as of the date of this certificate and will be true and accurate as of the Closing. If any such representations shall not be true and accurate prior to the Closing, the undersigned shall give immediate written notice of such fact to Icanic prior to the Closing.

Dated _________________ 2022.

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| |
|:---|
| **X** |
| Signature of individual (if Leef U.S. Securityholder **is** an individual) |
| **X** |
| Signature of Authorized signatory (if Leef U.S. Securityholder is **not** an individual) |
| Name of Leef U.S. Securityholder (**please print**) |
| Address of Leef U.S. Securityholder (**please print**) |
| Name of authorized signatory (**please print**) |
| Official capacity of authorized signatory (**please print**) |

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**Appendix "A" to**

**U.S. Representation Letter for Leef U.S. Securityholders**

*To be completed by Leef U.S. Securityholders who qualify as Accredited Investors*

 

In addition to the covenants, representations and warranties contained in the Merger Agreement and the Representation Letter to which this Appendix is attached, the undersigned Leef U.S. Securityholder covenants, represents and warrants to Icanic that the Leef U.S. Securityholder is an "accredited investor" as defined in Rule 501(a) of Regulation D under the U.S. Securities Act by virtue of meeting one of the following criteria (please initial on the appropriate lines):

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| 1.<br> Initials________ | Any bank as defined in Section 3(a)(2) of the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any savings and loan association or other institution as defined in Section 3(a)(5)(A) of the U.S. Securities Act whether acting in its individual or fiduciary capacity; any broker or dealer registered pursuant to Section 15 of the U.S. Securities Exchange Act of 1934; any investment adviser registered pursuant to section 203 of the *Investment Advisers Act of 1940* or registered pursuant to the laws of a state; any investment adviser relying on the exemption from registering with the United States Securities and Exchange Commission (the "**Commission**") under section 203(l) or (m) of the *Investment Advisers Act of 1940*; any insurance company as defined in Section 2(a)(13) of the U.S. Securities Act; any investment company registered under the U.S. Investment Company Act of 1940 or a business development company as defined in Section 2(a)(48) of that Act; any Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the U.S. Small Business Investment Act of 1958; any rural business investment company as defined in section 384A of the *Consolidated Farm and Rural Development Act*; any plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has total assets in excess of US$5,000,000; any employee benefit plan within the meaning of the U.S. *Employee Retirement Income Security Act of 1974* if the investment decision is made by a plan fiduciary, as defined in Section 3(21) of such Act, which is either a bank, savings and loan association, insurance company, or registered investment adviser, or if the employee benefit plan has total assets in excess of US$5,000,000, or, if a self-directed plan, with investment decisions made solely by persons that are "accredited investors" (as such term is defined in Rule 501 of Regulation D under the U.S. Securities Act); |
| 2.<br> Initials________ | Any private business development company as defined in Section 202(a)(22) of the U.S. *Investment Advisers Act of 1940*; |

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|:---|:---|
| 3.<br> Initials________ | Any organization described in Section 501(c)(3) of the U.S. *Internal Revenue Code*, corporation, Massachusetts or similar business trust, partnership, or limited liability company, not formed for the specific purpose of acquiring the securities offered, with total assets in excess of US$5,000,000; |
| 4.<br> Initials________ | Any trust with total assets in excess of US$5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase is directed by a sophisticated person (being defined as a person who has such knowledge and experience in financial and business matters that he or she is capable of evaluating the merits and risks of the prospective investment); |
| 5.<br> Initials________ | Any natural person whose individual net worth, or joint net worth with that person's spouse or spousal equivalent (being a cohabitant occupying a relationship generally equivalent to that of a spouse), excluding the value of that person's primary residence, at the time of purchase, exceeds US$1,000,000 (Note: For purposes of calculating net worth, |
|  | (i) the person's primary residence shall not be included as an asset; |
|  | (ii) indebtedness that is secured by the person's primary residence, up to the estimated fair market value of the primary residence at the time of this Representation Letter, shall not be included as a liability (except that if the amount of such indebtedness outstanding at the time of this Representation Letter exceeds the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount of such excess shall be included as a liability); |
|  | (iii) indebtedness that is secured by the person's primary residence in excess of the estimated fair market value of the primary residence shall be included as a liability; and |
|  | (iv) for the purposes of calculating joint net worth of the person and that person's spouse or spousal equivalent, (A) joint net worth can be the aggregate net worth of the investor and spouse or spousal equivalent, and (B) assets need not be held jointly to be included in the calculation; and reliance by the person and that person's spouse or spousal equivalent on the joint net worth standard does not require that the securities be purchased jointly); |
| 6.<br> Initials________ | Any natural person who had an individual income in excess of US$200,000 in each of the two most recent years or joint income with that person's spouse or spousal equivalent in excess of US$300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year; |

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| | | |
|:---|:---|:---|
| 7.<br> Initials________ | Any director or executive officer of Icanic; or | Any director or executive officer of Icanic; or |
| 8.<br> Initials________ | Any entity in which all of the equity owners meet the requirements of at least one of the above categories – *if this category is selected, you must identify each equity owner and indicate the category of accredited investor (by reference to the applicable number in this Representation Letter):* | Any entity in which all of the equity owners meet the requirements of at least one of the above categories – *if this category is selected, you must identify each equity owner and indicate the category of accredited investor (by reference to the applicable number in this Representation Letter):* |
|  | **Name of Equity Owner** | **Category of Accredited Investor** |
|  | <br> Note: It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this category. If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this category will be available; | <br> Note: It is permissible to look through various forms of equity ownership to natural persons in determining the accredited investor status of entities under this category. If those natural persons are themselves accredited investors, and if all other equity owners of the entity seeking accredited investor status are accredited investors, then this category will be available; |
| 9.<br> Initials________ | Any entity, of a type not listed in Categories 1- 4 or 8, not formed for the specific purpose of acquiring the securities offered, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the *Investment Company Act of 1940*); | Any entity, of a type not listed in Categories 1- 4 or 8, not formed for the specific purpose of acquiring the securities offered, owning investments in excess of US$5,000,000 (note: for the purposes of this Category 9, "investments is defined in Rule 2a51-1(b) under the *Investment Company Act of 1940*); |
| 10.<br> Initials________ | Any natural person holding in good standing one or more of the following professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status: The General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), and the Licensed Investment Adviser Representative (Series 65); | Any natural person holding in good standing one or more of the following professional certifications or designations or credentials from an accredited educational institution that the Commission has designated as qualifying an individual for accredited investor status: The General Securities Representative license (Series 7), the Private Securities Offerings Representative license (Series 82), and the Licensed Investment Adviser Representative (Series 65); |

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| | |
|:---|:---|
| 11.<br> Initials________ | Any "family office," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940: (i) with assets under management in excess of US$5,000,000, (ii) that is not formed for the specific purpose of acquiring the securities offered, and (iii) whose prospective investment is directed by a person (a "Knowledgeable Family Office Administrator") who has such knowledge and experience in financial and business matters that such family office is capable of evaluating the merits and risks of the prospective investment; or |
| 12.<br> Initials________ | Any "family client," as defined in rule 202(a)(11)(G)-1 under the Investment Advisers Act of 1940, of a family office meeting the requirements set forth in Category 11 above and whose prospective investment in Icanic is directed by such family office with the involvement of the Knowledgeable Family Office Administrator. |

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Dated__________________2022.

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| |
|:---|
| **X** |
| Signature of individual (if Leef U.S. Securityholder **is** an individual) |
| **X** |
| Signature of authorized signatory (if Leef U.S. Securityholder is **not** an individual) |
| Name of Leef U.S. Securityholder (**please print**) |
| Address of Leef U.S. Securityholder (**please print**) |
| Name of authorized signatory (**please print**) |
| Official capacity of authorized signatory (**please print**) |

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**Appendix "B"**

Form of Declaration and Undertaking for Removal of Legend – Rule 904 under the U.S. Securities Act of 1933

To: Icanic Brands Company Inc. (the "Company") <br>And To: The transfer agent for the Company's Common Shares

The undersigned (A) acknowledges that the sale of<u> </u> common shares in the capital of the Company, represented by Share Certificate No.(s)<u> </u> or held through the Direct Registration System (DRS) in DRS Holder Account No.<u> </u>, to which this declaration relates, is being made in reliance on Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and (B) certifies that (1) the undersigned is not an "affiliate" (as defined in Rule 405 under the U.S. Securities Act) of the Company (except solely by virtue of being an officer or director of the Company) or a "distributor", as defined in Regulation S, or an affiliate of a "distributor"; (2) the offer of such securities was not made to a person in the United States and either (a) at the time the buy order was originated, the buyer was outside the United States, or the seller and any person acting on its behalf reasonably believe that the buyer was outside the United States, or (b) the transaction was executed on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market within the meaning of Rule 902(b) of Regulation S under the U.S. Securities Act, and neither the seller nor any person acting on its behalf knows that the transaction has been prearranged with a buyer in the United States; (3) neither the seller nor any affiliate of the seller nor any person acting on their behalf has engaged in any directed selling efforts in connection with the offer and sale of such securities; (4) the sale is bona fide and not for the purpose of "washing off" the resale restrictions imposed because the securities are "restricted securities" (as such term is defined in Rule 144(a)(3) under the U.S. Securities Act); (5) the seller does not intend to replace the securities sold in reliance on Rule 904 of Regulation S under the U.S. Securities Act with fungible unrestricted securities; and (6) the contemplated sale is not a transaction, or part of a series of transactions which, although in technical compliance with Regulation S, is part of a plan or a scheme to evade the registration provisions of the U.S. Securities Act. Unless otherwise specified, terms used herein have the meanings given to them by Regulation S under the U.S. Securities Act.

Dated<u> </u> 20<u> </u>.

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| |
|:---|
| X |
| Signature of individual (if Seller is an individual) |
| X |
| Signature of authorized signatory (if Seller is not an individual) |
| Name of Seller (please print) |
| Name of authorized signatory (please print) |
| Official capacity of authorized signatory (please print) |

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**Affirmation by Seller's Broker-Dealer**

**(Required for sales pursuant to Section (B)(2)(b) above)**

We have read the representations of our customer<u> </u> (the "Seller") contained in the foregoing Declaration for Removal of Legend, dated<u> </u>, 20<u> </u> , with regard to the sale, for such Seller's account, of<u> </u> common shares (the "Securities") of the Company represented by certificate number(s)<u> </u>, or held through the Direct Registration System (DRS) in DRS Holder Account No.<u> </u>. We have executed sales of the Securities pursuant to Rule 904 of Regulation S under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), on behalf of the Seller. In that connection, we hereby represent to you as follows:

(1) no offer to sell Securities was made to a person in the United States;

(2) the sale of the Securities was executed in, on or through the facilities of the Toronto Stock Exchange, the TSX Venture Exchange, the Canadian Securities Exchange or another designated offshore securities market (as defined in Rule 902(b) of Regulation S under the U.S. Securities Act), and, to the best of our knowledge, the sale was not pre-arranged with a buyer in the United States;

(3) no "directed selling efforts" were made in the United States by the undersigned, any affiliate of the undersigned, or any person acting on behalf of the undersigned; and

(4) we have done no more than execute the order or orders to sell the Securities as agent for the Seller and will receive no more than the usual and customary broker's commission that would be received by a person executing such transaction as agent.

For purposes of these representations: "affiliate" means a person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the undersigned; "directed selling efforts" means any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of, conditioning the market in the United States for the Securities (including, but not be limited to, the solicitation of offers to purchase the Securities from persons in the United States); and "United States" means the United States of America, its territories or possessions, any State of the United States, and the District of Columbia.

Legal counsel to the Company shall be entitled to rely upon the representations, warranties and covenants contained herein to the same extent as if this affirmation had been addressed to them.

Dated this<u> </u> day of<u> </u>, 20<u> </u>.

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| |
|:---|
| Signature of Signatory: |
| Name and Title of Authorized Signatory: |
| Name of Brokerage Company: |

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<u>**Exhibit D**</u>

**INSTRUCTIONS FOR ELIGIBLE HOLDERS WISHING TO FILE A TAX ELECTION FOR PURPOSES OF THE TAX ACT**

Eligible Holders should consult their tax advisors as to the proper completion and delivery of the relevant tax election forms to Icanic, and the applicable filing deadlines. The comments made in this section, are of a general nature only and are not intended to be (nor should they be construed to be) legal or tax advice to any particular Eligible Holder.

Under the terms of the Merger, Icanic will execute the necessary joint election form(s) (the "Tax Election Forms") for making the Section 85 Election for an Eligible Holder from whom two signed, correct and complete copies of the Tax Election Forms are received by Icanic within 60 days after the Effective Date (the "Tax Election Deadline") and to return such Tax Election Forms to the Eligible Holder within 30 days after receipt of such Tax Election Forms. Eligible Holders are solely responsible for timely filing any Tax Election Forms with the Canada Revenue Agency.

Neither LEEF, Icanic nor any successor corporation shall be responsible for the proper completion and filing of the Tax Election Forms, except for the obligation to sign and return the duly completed Tax Election Forms which are received within the Tax Election Deadline. The Eligible Holder will be solely responsible for the payment of any taxes, interest or penalties arising as a result of the failure of a Eligible Holder to properly or timely complete and file such joint election forms in the form and manner prescribed by the Tax Act (or any applicable provincial legislation).

**<u>Summary of what an Eligible Holder needs to do to file a Section 85 Election</u>**

Submit two copies of your Tax Election Forms to Icanic in accordance with the procedures in the Information Statement. Any Tax Election Forms must be received on or before the Tax Election Deadline. Send your signed, correct and complete copies of the Tax Election Forms to Icanic at the address below.

Address: 789 West Pender Street, Suite 810,Vancouver, BC, V6C 1H2

Attention: Chief Financial Officer

**The Tax Election Form**

The following is a partial discussion of certain information that an Eligible Holder would require to fill out a Tax Election Form.

&nbsp;&nbsp;&nbsp;&nbsp;1. Corporation's
 name (transferee)

The name of the transferee corporation is "Icanic Brands Company Inc.".

&nbsp;&nbsp;&nbsp;&nbsp;2. Business
 number

The business number for Icanic is 849317284BC0001.

&nbsp;&nbsp;&nbsp;&nbsp;3. Address

Icanic's address is 789 West Pender Street, Suite 810,Vancouver, BC.

&nbsp;&nbsp;&nbsp;&nbsp;4. Postal
 code

Icanic's postal code is V6C 1H2.

&nbsp;&nbsp;&nbsp;&nbsp;5. Tax year of the corporation

Icanic's tax year is July 31.

&nbsp;&nbsp;&nbsp;&nbsp;6. Tax
 services office

Icanic's Tax Services Office is 468 Terminal Ave. Vancouver, British Columbia V6A 0C1

&nbsp;&nbsp;&nbsp;&nbsp;7. Paid
 up capital of the common shares of Icanic

Eligible Holders do not have the information necessary to complete this portion of the form and should therefore not complete this portion of the form. Icanic will complete this portion of the form.

Eligible Holders should consult their tax advisors as to the income tax consequences under the Tax Act of the Earn-Out Payment.

**ELIGIBLE HOLDERS SHOULD CONSULT THEIR TAX ADVISORS AS TO THEIR ELIGIBILITY UNDER THE TAX ACT TO FILE A TAX ELECTION FORM AND THE PROPER COMPLETION AND DELIVERY OF THE RELEVANT TAX ELECTION FORMS TO ICANIC, AND THE APPLICABLE FILING DEADLINES.**

**DEPOSITARY AGREEMENT**

February 23, 2022

Endeavor Trust Corporation

702 - 777 Hornby Street

Vancouver, BC V6Z IS4

Attention: David Eppert, Chief Executive Officer

Dear Youhee:

LEEF Holdings, Inc. **("Leef')** and Icanic Brands Company Inc. **("Icanic"** and with Leef, the **"Companies")** wish to engage Endeavor Trust Corporation **("Endeavor")** as depositary in connection with a proposed three-cornered amalgamation (the **"Merger")** under the terms and conditions of a merger agreement dated January 21, 2022 (the **"Merger Agreement"),** among Icanic, lcanic Merger Sub, Inc. **("Subco"),** Leef and Micah Anderson, solely in his capacity as representative of Leef stockholders (the **"Leef Stockholders").** lcanic will acquire all of the issued and outstanding shares of common stock of Leef (the **"Leef Shares")** by way of a statutory triangular merger under the *Nevada Revised Statutes* between Leef and Subco. Capitalized terms not defined herein shall have the meaning ascribed to such terms in the Merger Agreement.

Pursuant to the Merger Agreement, in consideration for the Leef Shares, lcanic will, on the effective date of ihe Merger (the **"Effective Date")** issue from treasury to each Leef Stockholder the number of common shares of lcanic (the **"Payment Shares")** as determined pursuant to the terms of the Merger Agreement in exchange for one Leef Share.

All Payment Shares will be issued as direct registration system statements (the **"DRS statements").** Each Leef Stockholder who is a U.S. Resident Holder must complete, execute and deliver a representation letter (the **"U.S. Representation Letter")** either **(i)** in the form attached as Exhibit "C" to the information statement of Leef dated Januaiy 27, 2022, or (ii) in the form accompanying the Letter of Transmittal, in order to receive the Payment Shares that such U.S. Resident Holder is entitled to receive under the Merger.

No fractional Payment Shares shall be issued to Leef Stockholders in connection with the Merger. The number of Payment Shai·es to be issued to each Leef Stockholder shall be rounded down to the nearest whole Payment Share in the event that any Leef Stockholder is otherwise entitled to a fractional share representing less than a whole Payment Share without any compensation therefor.

The Companies wish to confirm the terms of Endeavor's appointment as depositary in connection with the Merger.

**<u>1.</u> <u>Appointment</u>**

1.1 Endeavor is hereby appointed to act as depositary, and Endeavor accepts such appointment in accordance with the terms and conditions of this agreement (this **"Agreement").**

1.2 After the six-month anniversaiy of the Effective Date, Endeavor shall mail to each registered Leef Stockholder who has not properly deposited Leef Shares under the Merger at the time of such mailing (a) a letter reminding the Leef Stockholder of the completion of the Merger, (b) a Letter of Transmittal (revised as necessary) and (c) a self-addressed envelope for use by such Leef Stockholder (collectively, the **"Reminder Notice").** The Reminder Notice will be sent by first class mail to the address of the Leef Stockholder as shown on the register of Leef Stockholders provided to Endeavor prior to such mailing. Upon the request of Endeavor, Icanic shall prepare and deliver to Endeavor the form of reminder letter and letter of transmittal for use in the Reminder Notice.

**<u>2.</u> <u>Deuosit of Shares</u>**

2.1 Endeavor is hereby authorized to accept certificates representing Leef Shares (collectively, the **"Share Instruments")** which are deposited to Endeavor and to hold same upon the terms and conditions set forth herein. In doing so, Endeavor will:

(a) hold
 all Share Instruments and Letters of Transmittal properly deposited under the Merger until
 completion of the Merger or until the Companies provide joint written notice to Endeavor
 that the Merger will not be completed;

(b) date
 and time stamp all deposited Letters of Transmittal when received in duly completed form
 (together with all other required documentation including Share Instruments);

(c) ascertain
 and ensure that each deposit of Leef Shares under the Merger is accompanied by a duly signed
 and completed Letter of Transmittal, the appropriate Share Instruments and all other documents
 that may be required to give Icanic good title to the Leef Shares so deposited at the effective
 time of the Merger, and that such documents delivered are properly executed and completed
 in accordance with the instructions set forth in the Letter of Transmittal;

(d) verify
 that the Share Instrument(s) accompanying a Letter of Transmittal conform with the information
 contained in the Letter of Transmittal;

(e) keep
 a record of each deposit of a Letter of Transmittal that is not accompanied by a Share Instrument
 and of all deficiencies in received Letters of Transmittal;

(f) send
 to each registered Leef Stockholder who deposits a Share Instrument that is not accompanied
 by a duly completed and signed Letter of Transmittal, a letter informing such Leef Stockholder
 of the requirement to duly complete, sign and submit a Letter of Transmittal in addition
 to the appropriate Share Instruments; and

(g) perform
 such other services as the Companies may reasonably request as are incidental to the above-mentioned
services.

2.2 Endeavor will be entitled to treat as issued and outstanding the Leef Shares represented by any Share Instrument(s) deposited under the Merger, if the name on such Share Instrument conforms to the name of a Leef Stockholder as it appears on the register of Leef Stockholders maintained by Leef and transferred to Endeavor immediately prior to completion of the Merger on the Effective Date.

2.3 Endeavor will direct any Leef Stockholder whose Share Instrument has been lost, stolen or destroyed to submit a Letter of Transmittal completed to the best of their ability and to complete and submit a letter describing the loss, theft or destruction.

2.4 Endeavor will promptly upon request and in any case with reasonable frequency advise the Companies and their respective representatives of the number of Leef Shares deposited with Endeavor in connection with the Merger. Such requests will be invoiced by Endeavor to the Companies in accordance with the fee schedule attached as Schedule "A."

**<u>3.</u>Improper Deposits**

3.1 If a Letter of Transmittal or other required document has been improperly completed or signed, or the Share Instrument(s) accompanying a Letter of Transmittal are not in proper form for deposit to the Merger, or some other irregularity in connection with a deposit exists, Endeavor will make reasonable efforts to contact the applicable Leef Stockholder to cause such irregularity to be corrected. If reasonable efforts to correct such irregularity prove to be unsuccessful, and Icanic determines to not accept such deposit pursuant to Section 3.4 and after following the procedures set out in Section 3.2, Endeavor will return to the depositing Leef Stockholder, as soon as reasonably practicable, the Share Instrument(s) that is the subject of the improper or defective deposit.

3.2 If Endeavor has any doubt whether any Leef Shares have been properly deposited under the Merger or there is any irregularity with respect to the completion of a Letter of Transmittal, Endeavor will seek the advice oflegal counsel to Icanic as to the acceptability of the deposit. If reasonable efforts to correct an improper deposit prove to be unsuccessful, Endeavor will seek the advice of such legal counsel with respect to the procedures to be followed. Endeavor will reject any deposit if, in the opinion of Icanic's legal counsel, the deposit has been made improperly and Endeavor will take such action as directed to by such legal counsel.

3.3 Notwithstanding any other prov1s10n of this Agreement, in the case of the loss, theft or destruction of a certificate representing Leef Shares, the holder of such certificate must deliver to Icanic and Endeavor (a) evidence satisfactory to Icanic and Endeavor, each acting reasonably, of the loss, theft or destruction of such certificate and (b) an affidavit describing the loss, theft or destruction, as applicable, before the Leef Shares will be considered properly deposited under the Merger.

3.4 Subject to Section 3.3 above, Jeanie shall have full discretion, acting reasonably, to determine whether any type of deposit is complete and proper and Jeanie has the absolute right to determine whether to accept or reject any category of deposit not in proper form.

**<u>4.</u> <u>Payment Sh.ares</u>**

4.1 Endeavor aclmowledges that as of the date hereof, the number of Payment Shares to be issued as consideration to each Leef Stockholder for each one Leef Share (the **"Exchange Ratio")** has not been determined, and that the Exchange Ratio will not be determined until immediately prior to the Effective Time. On or immediately prior to the Effective Time, the Companies agree to provide Endeavor with notice of the Exchange Ratio, and Endeavor shall be entitled to rely on such notice to determine the proper number of Payment Shares to be delivered to each former Leef Stockholder in accordance with Section 4 of this Agreement.

4.2 On or prior to the Effective Date, Jeanie shall deposit with Endeavor, for the benefit of the Leef Stockholders, the aggregate number of Payment Shares which the Leef Stockholders are entitled to receive pursuant to the Merger. The Payment Shares shall be held by Endeavor as agent and nominee for the Leef Stockholders for distribution to such Leef Stockholders in accordance with the terms of the Merger Agreement and this Section 4. Promptly following receipt of the Payment Shares and in any event on the same Business Day, Endeavor shall deliver a written receipt to the Companies acknowledging receipt of the Payment Shares.

4.3 For properly deposited Leef Shares received prior to the Effective Date, Endeavor will, upon Endeavor's receipt of the Payment Shares in accordance with Section 4.2 and written notice from the Companies that the Merger has become effective, arrange for the delivery by first class (postage prepaid) insured mail as soon as practicable (but in any event no later than five Business Days) after the Effective Date of a DRS statement representing the Payment Shares in accordance with the instructions of the registered Leef Stockholders as set forth in their respective Letters of Transmittal. Endeavor will not arrange for the delivery of the Payment Shares until the Share Jnstrument(s), Letter of Transmittal and all required documents are received by Endeavor, unless Endeavor is otherwise instructed in writing by the Companies. Thereafter, for properly deposited Leef Shares received by Endeavor on or after the Effective Date, Endeavor will, as soon as practicable (but in any event no later than five Business Days) following the receipt of the Letter of Transmittal accompanying such properly deposited Leef Shares, arrange for the delivery by first class (postage prepaid) insured mail of a DRS statement representing the Payment Shares, in accordance with the instructions of the depositing Leef Stockholders as set forth in their respective Letters of Transmittal.

4.4 (a) If
 a dividend or other distribution is declared or made after the Effective Time with a record
 date after the Effective Date by Icanic with respect to Payment Shares held by Endeavor pursuant
 to this Agreement, Endeavor will accrue any such dividends due to former Leef Stockholders
 on behalf of former Leef Stockholders

(b) At
 such time as a former Leef Stockholder deposits to Endeavor a duly completed Letter of Transmittal
 and the Share Instrument(s) representing the Leef Shares held by such former Leef Stockholder,
 together with such other additional documents and instruments as provided for in the Letter
 of Transmittal duly executed and completed as Endeavor may reasonably require, Endeavor shall,
 in addition to delivering the DRS statement representing the Payment Shares to which such
 former Leef Stockholder is entitled to receive, as soon as reasonably practicable, forward
 or cause to be forwarded by first class (postage prepaid) insured mail a cheque representing
 the amount of dividends accrued on behalf of such shareholder in accordance with the instructions
 of the depositing holder of Leef Shares as set forth in the Letters of Transmittal, unless
 such depositing holder of Leef Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding
 Sections 4.4(a) and 4.4(b), no dividend or other distribution declared or made after the
 Effective Date with respect to Payment Shares with a record date after the Effective Date
 shall be delivered to the holder of any unsurrendered Share Instrument that, immediately
 prior to the Effective Time, represented outstanding Leef Shares unless and until the holder
 of such Share Instrument shall have surrendered the same to Endeavor, along with a duly completed
 Letter of Transmittal and such other additional documents and instruments as provided for
 in the Letter of Transmittal duly executed and completed as Endeavor may reasonably require.
 At the time of such compliance, there shall, in addition to the delivery of the DRS statement
 representing the Payment Shares to which the former Leef Stockholder is entitled to receive,
 be delivered to such holder, without interest, a cheque for the amount of the applicable
 dividend or other distribution with respect to such Payment Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Endeavor
 shall be entitled to deduct or withhold (or cause to be deducted or withheld) from any dividends,
 distributions or other amounts otherwise payable to any former Leef Stockholder such Taxes
 or other amounts as Endeavor may be instructed by Icanic, and shall provide tax information
 returns, slips, summaries and reports in accordance with instructions provided by Icanic
 to each former Leef Stockholder in the same name(s) that has been issued dividend funds.
 Icanic will provide Endeavor with a notification at least five Business Days before the dividend
 record date each time a dividend is declared by Jeanie, as the case may be. The notification
 shall include the record date, payable date, and dividend rate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any
 dividend funds delivered to Endeavor (the **"Amount Held")** will be held
 in an account of Endeavor designated in the name of Icanic for the benefit of the former
 Leef Stockholders entitled to receive the same. Until paid out in accordance with this Agreement,
 the Amount Held shall be kept segregated in Endeavor's records and shall be deposited
 in one or more trust accounts to be maintained by Endeavor in Icanic's name at a Canadian
 Schedule I chartered bank acceptable to Icanic and Endeavor, each acting reasonably, distinct
 from Endeavor's own assets and distinguishable in the registers and other books of
 accounts kept by Endeavor from those of any other person until disbursed in accordance with
 this Agreement. All amounts held by Endeavor pursuant to this Agreement shall be held by
 Endeavor in accordance with this Section 4.4. Endeavor shall have no responsibility or liability
 for any diminution of the Amount Held which may result from any deposit made pursuant to
 this Section 4.4, including any losses resulting from a default by the Canadian Schedule
 I chartered bank holding the Amount Held. Upon written request from Icanic, Endeavor shall
 provide a written statement of reasonable detail regarding the quantum of the Amount Held
 as well as such other information as Icanic may reasonably request. At any time and from
 time to time, Icanic shall be entitled to direct Endeavor by written notice to withdraw all
 or any of the Amount Held that may then be deposited with a Canadian Schedule I chartered
 bank and deposit such Amount Held with an alternative Canadian Schedule I chartered bank
 acceptable to Icanic and Endeavor, each acting reasonably. With respect to any withdrawal
 notice, Endeavor will endeavor to withdraw such amount specified in the notice as soon as
 reasonably practicable and Icanic acknowledges and agrees that such specified amount remains
 at the sole risk of Icanic prior to and after such withdrawal. Endeavor does not have any
 interest in the Amount Held but is serving as depositary only and is not a debtor of the
 Companies in respect of the Amount Held.

4.5 If Icanic determines and advises Endeavor in writing that delivery by mail may be delayed, Endeavor will make arrangements for f01mer Leef Stockholders to take delivery of the Payment Shares in person at Endeavor's office located in Vancouver, British Columbia or by electronic transmission to the email address of Leef Stockholders provided by the Leef Stockholders until Icanic determines that delivery by mail will no longer be delayed. Any additional costs associated therewith shall be paid by **Icanic.**

4.6 In the event of a transfer of ownership of Leef Shares which is not registered in the transfer records of Leef, a DRS statement representing the Payment Shares shall be delivered to a transferee if the applicable Share Instrument(s) representing the Leef Shares is presented to Endeavor, accompanied by all documents and instruments required to evidence and effect such transfer.

4.7 From and after the Effective Date, each Share Instrument which immediately prior to the Effective Date represented Leef Shares will be deemed after the Effective Date to represent only the right to receive a DRS statement representing Payment Shares which such former Leef Stockholder is entitled to receive pursuant to the Merger Agreement in exchange for the Leef Shares.

4.8 All of the issued and outstanding Leef Shares deposited under the terms of the Merger Agreement are to be transferred to and registered in the name of Icanic as of the Effective Date.

4.9 Notwithstanding Section 4.6, the foregoing, but subject to any applicable unclaimed property laws, any Share Instruments formerly representing Leef Shares that have not been duly deposited to Endeavor with all other documents as required by the Merger on or before the day that is six years from the Effective Date, shall cease to represent a claim or interest of any kind or nature, including a claim for dividends or other distributions, against the Companies or Endeavor by a former Leef Stockholder. Upon receipt by Endeavor on or after the day that is six years from the Effective Date of a written request from Icanic (the **"Written Request"),** Endeavor shall return to Icanic the unclaimed Payment Shares held by Endeavor at such time in respect of such former Leef Stockholders. If Endeavor has not received a Written Request within three months following the sixth anniversary of the Effective Date, Endeavor shall, as soon as reasonably practicable, provide Icanic with a reconciliation report summarizing the remaining Payment Shares and request further instructions from Icanic.

4.10 Leef shall, on or before the last business day prior to the Effective Date, provide Endeavor and Icanic with a list of Leef Shareholders and a list of all Leef Shareholders who have delivered and not withdrawn notices of dissent **("Dissenting Leef Shareholders"),** if any. Endeavor shall inform the Companies in writing promptly upon the receipt of any Letters of Transmittal and any accompanying Share Instruments from any Dissenting Leef Shareholders, if received, and provide such further information about the Share Instruments surrendered by a Dissenting Leef Shareholder and the documents accompanying such surrender as the Companies may request. Endeavor shall not act on the receipt of Letters of Transmittal and any accompanying Share Instruments from any Dissenting Leef Shareholders, unless provided with joint written instructions from the Companies.

**<u>5.</u> <u>Return of Deposited</u>** **<u>Shares</u>**

5.1 If the Companies give Endeavor written notice that the Merger has not been completed, Endeavor will arrange, as soon as practicable after receipt of such written notice, for the return of deposited Share Instruments representing deposited Leef Shares to each respective Leef Stockholder by first class (postage prepaid) insured mail in the name of and to the address specified by the Leef Stockholder in the Letter of Transmittal or, if such name and address is not so specified, as directed by Leef.

**<u>6.</u> <u>Notices</u>**

Any demand, notice or communication required or contemplated by this Agreement shall be in writing and sent by personal delivery, courier, mail or email addressed to Icanic as indicated below, and to Endeavor as indicated in the heading of this Agreement or to such other address, individual or email address as may be designated by notice provided by any party to the others. In the event of actual or anticipated postal disruption, courier service personal delivery or email transmission shall be used. Any demand, notice or other communication shall be deemed conclusively to have been received by the addressee (i) if sent by mail, five business days after posting; (ii) if sent by courier service or personal delivery, upon actual delivery; and (iii) if sent by email, upon the same business day if given during the ordinary business hours of the addressee, or the next following business day if given outside of such hours.

Icanic Brands Company Inc.

789 West Pender Street, Suite 810

Vancouver, British Columbia

V6C 1H2

Attention: Brandon Kou <br> Email: <u>brandon@icaninc.com</u>

LEEF Holdings, Inc.

5580 La Jolla Boulevard #395

La Jolla, CA 92037

Attention: Micah Anderson

Email: micah@leefca.com

with a courtesy copy (which copy will not constitute notice to Icanic) to:

McMillan LLP

1500 Royal Centre

1055 West Georgia Street

Vancouver, British Columbia V6E 4N7

Attention: Desmond Balakrishnan <br> E-mail: desmond.balakrishnan@mcmillan.ca

**<u>7.</u> <u>Fees</u>**

Endeavor's fees for acting hereunder will be those set forth in Schedule "A" attached hereto. Icanic will pay all of Endeavor's reasonable out-of-pocket expenses in connection with Endeavor's duties hereunder (including, without limitation, overtime expenses, postage, courier, long distance calls, P.S.T., mailing insurance, photocopying, and expert consultant and counsel fees and disbursements). All fees and out- of pocket expenses will be paid by Icanic within 30 days from the date of invoice and Jeanie acknowledges that late payment may be subject to interest charges as indicated on the invoice. Icanic acknowledges and agrees that Endeavor's fees are confidential information. As such, Icanic agrees not to disclose any such fees to any third party without Endeavor's prior written consent, save and except for disclosure (a) to Icanic's professional advisors, held to strict confidence; and (b) as required or otherwise compelled by law.

**<u>8*.*</u> <u>Liability and Indemnity</u>**

8.1 Endeavor shall not be liable for any action taken or omitted to be taken by it under or in connection with this Agreement, except for losses caused by its bad faith, willful misconduct or gross negligence.

8.2 Icanic indemnifies and holds harmless Endeavor, its affiliates, successors and permitted assigns, and its and their respective current and former directors, officers and employees, from and **against any and all claims, demands, assessments, interest, penalties, actions, suits, proceedings,** liabilities, losses, damages, costs and expenses (including, without limiting the foregoing, consultant fees and counsel fees and disbursements on a solicitor and client basis), arising from or in connection with this Agreement, except, subject to Section 8.4, where same results from bad faith, willful misconduct or gross negligence on the part of Endeavor.

8.3 Notwithstanding any other provision of this Agreement, and whether such losses or damages are foreseeable or unforeseeable, except in the event of bad faith, fraud or wilful misconduct on the part of Endeavor, Endeavor shall not be liable under any circumstances whatsoever for any (a) breach by any other party of any securities law or other rule of any securities regulatory authority, (b) lost profits, or (c) special, indirect, incidental, consequential, exemplary, aggravated or punitive losses or damages.

8.4 Notwithstanding any other provision of this Agreement, Endeavor's liability shall be limited, in the aggregate, to the amount of fees paid by Icanic to Endeavor under this Agreement in the 12 months immediately prior to Endeavor receiving the first notice of claim, except with respect to any liability resulting from Endeavor's bad faith, fraud or willful misconduct, in which case Endeavor's liability shall be unlimited.

8.5 In the event of any claim, action or proceeding brought or commenced against Endeavor, Endeavor shall notify Icanic promptly after Endeavor has received written assertion of such claim or shall have been served with a summons or other legal process, giving information as to the nature and basis of the claim, action or proceeding. Icanic shall undertake the investigation and defence of any such claim, action or proceeding and Endeavor shall have the right to retain other counsel, at Endeavor's own expense, to act on Endeavor's behalf, provided that, if Endeavor reasonably determines that a conflict of interest or other circumstances wherein Endeavor's best interests would not be adequately represented exist that make representation by counsel chosen by Icanic not advisable, the fees and disbursements of such other counsel shall be paid by Icanic. In the event of an unreasonable delay in Endeavor's notification or failure to notify Icanic of any action, claim or proceeding, Icanic shall not be liable under this indemnity to the extent (but only to the extent) that any such delay or failure to give notice as herein required prejudices the defence of such action, claim or proceeding or results in any material increase in the liability oflcanic under this indemnity.

8.6 The provisions of this Section 8 shall survive indefinitely, including the termination of this Agreement.

8.7 Endeavor shall retain the right not to act and shall not be liable for refusing to act under this Agreement if, due to a lack of information or for any other reason whatsoever, Endeavor, in Endeavor's sole judgment, determines in good faith and acting reasonably that such act might cause Endeavor to be in non-compliance with any applicable anti-money laundering, anti-terrorist or economic sanctions legislation, regulation or guideline. Further, should Endeavor, in Endeavor's sole judgment, determine in good faith and acting reasonably at any time that Endeavor's acting under this Agreement has resulted in Endeavor being in non-compliance with any applicable anti-money laundering, anti-terrorist or economic sanctions legislation, regulation or guideline, then Endeavor shall have the right to resign on JO days written notice to Icanic, provided (a) that Endeavor's written notice shall describe the circumstances of such non-compliance; and (b) that if such circumstances are rectified to Endeavor's satisfaction within such I0- day period, then such resignation shall not be effective.

**<u>9.</u> <u>Termination</u>**

9.1 This Agreement may be terminated by Endeavor, Icanic or Leef (i) for any reason whatsoever upon 90 days' written notice to the other parties or such other shorter period as the parties may agree to in writing or (ii) by either party upon 30 days' written notice if there has been a breach of or failure to perform any representation, warranty, covenant, or agreement on the pm1 of the other party set forth in this Agreement, which breach or failure remains uncured for IO days after written notice thereof.

9.2 This Agreement will automatically terminate upon the earlier of: (a) the aggregate Payment Shares being distributed to former Leef Stockholders in accordance with the provisions hereof; (b) the return of Leef Shares pursuant to Section 5 as a result of the Merger not being completed

9.3 Upon any termination of this Agreement as set forth in this Section 9, Endeavor shall deliver to any successor depositary appointed by the Companies, or at the direction of the Companies, (i) all Payment Shares held by Endeavor hereunder, and (ii) all originals or copies, as applicable, of Letters of Transmittal and Share Instruments and any other documents held by Endeavor in connection with its services hereunder.

**<u>10.</u> <u>General</u>**

10.1 In acting as depositary, Endeavor:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) shall have no duties or obligations other than those set forth herein or as may subsequently be agreed to by Endeavor and the Companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) shall not be obliged to take any legal action that might, in Endeavor's judgment, involve any expense or liability unless Endeavor shall have been furnished with reasonable funding and indemnity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) may consult counsel satisfactory to Endeavor (including Icanic's counsel) at Jeanie's expense and the advice or opinion of such counsel shall be full and complete authorization or protection in respect of any action or omission taken by Endeavor thereunder, in good faith, in accordance with the advice or opinion of such counsel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) shall not be called upon at any time to advise any person depositing or considering depositing Leef Shares as to the wisdom in making such deposit or as to the increase or decrease in the market value of the Leef Shares; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) may rely upon any instruction, instrument, certificate, repot1 or paper believed by Endeavor to be genuine and to have been signed or presented by the proper person(s) and Endeavor shall be under no duty to make any investigation or inquity as to any signature or statement contained therein, but may accept the same as having been properly given and as conclusive evidence of the truth and accuracy of any statements therein contained.

10.2 It is agreed that Endeavor and the Companies shall treat all Leef Stockholders in the same manner and shall not provide preferential treatment to any Leef Stockholder or Leef Stockholders in connection with the Merger.

10.3 This Agreement shall not be assigned by any of the patties hereto without the prior written consent of the other parties.

10.4 This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns.

10.5 This Agreement shall be governed by and construed in accordance with the laws of the Province of British Columbia and the laws of Canada applicable therein.

10.6 This Agreement may be signed in any number of counterparts, including counterparts sent by facsimile or in Portable Document Format (.pdf) by email transmission, each of which will be deemed an original, but all of which together will constitute one and the same instrument.

10.7 Time shall be of the essence of this Agreement.

10.8 Any inconsistency between this Agreement and the Merger Agreement, as they may from time to time be amended, shall be resolved in favour of the latter, except with respect to the duties, liabilities and indemnifications of Endeavor as depositmy, which will be resolved in favour of this Agreement.

10.9 No modification of or amendment to this Agreement shall be valid or binding unless set forth in writing and duly executed by all of the parties hereto. This Agreement and the schedules attached hereto represent the entire Agreement between the parties with respect to the subject matter hereof.

10.10 The use of headings and division of sections and paragraphs is for convenience reference only and does not affect the construction or interpretation of the Agreement.

10.11 Endeavor shall not be liable, or held in breach of this Agreement, if prevented, hindered, or delayed in the performance or observance of any provision contained herein by reason of act of God, riots, terrorism, acts of war, epidemics, governmental action or judicial order, earthquakes, or any other similar causes (including, but not limited to, mechanical, electronic or communication interruptions, disruptions or failures). Performance times under this Agreement shall be extended for a period of time equivalent to the time lost because of any delay that is excusable under this Section 10.

10.12 Endeavor shall protect and hold all confidential information of the Companies in confidence with at least the same degree of care as it protects its own confidential information, but not less than a reasonable degree of care, except as required by Jaw.

10.13 Endeavor and the Companies hereto confirm that it is their wish that this Agreement as well as all other documents relating hereto, including notices, have been and shall be drawn up in English. *Les parties aux présentes confirment leur consentement à ce que cette convention de méme que taus les documents, ainsi que tout avis s'y rattachant, soient rédigés en anglais.*

 

***[Remainder of page intentionally left blank; signature page follows.]***

 

 

Kindly indicate Endeavor's acceptance of the terms of this letter by signing and returning to the Companies the duplicate hereof, in which case this letter will form an Agreement between us.

**ICANIC BRANDS COMPANY INC.**

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| | |
|:---|:---|
| Per: | ![](pg724_001.jpg) |
| Title: | Chief Executive Officer |
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| Per: | |
| Title: | Chief Executive Officer |

---

Accepted and agreed to as of the <u>23<sup>rd</sup></u> day of February, 2022.

**ENDEAVOR TRUST CORPORATION**

---

| | |
|:---|:---|
| Per: | ![](pg724_002.jpg) |
| Title: | Chief Executive Officer |
| Per: | ![](pg724_003.jpg) |
| Title: | Chief Executive Officer |

---

Kindly indicate Endeavor's acceptance of the terms of this letter by signing and returning to the Companies the duplicate hereof, in which case this letter will form an Agreement between us.

**ICANIC BRANDS COMPANY INC.**

---

| | |
|:---|:---|
| Per: | |
| Title: | Chief Executive Officer |
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |
| Per: | ![](pg724_004.jpg) |
| Title: | Chief Executive Officer |

---

Accepted and agreed to as of the<u> </u> day of February, 2022.

**ENDEAVOR TRUST CORPORATION**

---

| | |
|:---|:---|
| Per: | |
| Title: | Chief Executive Officer |
| Per: | |
| Title: | Chief Executive Officer |

---

**SCHEDULE "A"**

**SCHEDULE OF FEES**

---

| | |
|:---|:---|
| **Endeavor Trust Corooration** | **Endeavor Trust Corooration** |
| **Fee Schedule Sunnlemental** | **Fee Schedule Sunnlemental** |
| Depository Agreement: | $2500 |
| Certificate Exchange: | Hourly ($150/hour) |
| Certificates: | $20 each |
| Courier Cost: | Hourly plus fees charged by Courier |
| Mail: | Hourly plus postage and printing |
| Lost Securities Bond: | Paid by shareholder to insurance company |
| **Note: See Fee schedule for complete list of fees.** | **Note: See Fee schedule for complete list of fees.** |

---

**TREASURY ORDER**

TO: ENDEAVOR TRUST CORPORATION <br> Suite 760 – 777 Hornby Street <br> Vancouver, BC, V6Z 1S4

**Attn: Processing Department**

You are hereby authorized and directed to register and issue a non-certificated position evidencing an aggregate of **758,274,035** common shares of Icanic Brands Company Inc. (each, a "**Payment Share**", and collectively, the "**Payment Shares**") in the name of:

**Endeavor Trust Corporation as Depositary for the former shareholders of shares of common stock of LEEF Holdings, Inc.**

**Suite 760 – 777 Hornby Street**

**Vancouver, BC, V6Z 1S4**

We confirm that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 directors of the Company have duly authorized the allotment and issuance of the fully paid
 and non-assessable common shares;

&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Payment Shares issued are fully paid at a price of $**0.19978** per Payment Share;

&nbsp;&nbsp;&nbsp;&nbsp;3. The
 Company is issuing the Payment Shares as consideration for the acquisition of all of the
 issued and outstanding shares of LEEF Holdings, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;4. Each
 former holder of shares of common stock of LEEF Holdings, Inc. will receive DRS statements
 representing the Payment Shares with the following legends:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. The
 holder of this security must not trade this security before April 20, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The
 holder of this security must not trade this security before July 20, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. The
 holder of this security must not trade this security before October 20, 2023

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. The
 holder of this security must not trade this security before January 20, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. The
 holder of this security must not trade this security before April 20, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. The
 holder of this security must not trade this security before July 20, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. The
 holder of this security must not trade this security before October 20, 2024

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. The
 holder of this security must not trade this security before January 20, 2025

&nbsp;&nbsp;&nbsp;&nbsp;5. The DRS statements representing
 the Payment Shares issuable to U.S. shareholders will have the following legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

&nbsp;&nbsp;&nbsp;&nbsp;6. The present treasury order adheres to the
 requirements as set out in the Company's Articles and any and all applicable statutes and regulations.

**DATED** at Vancouver, British Columbia, this 20th day of April, 2022

**ICANIC BRANDS COMPANY INC.**

---

| | | | |
|:---|:---|:---|:---|
| Per: | ![](pg724_001.jpg) | Per: | |
|  | Brandon Kou, CEO |  | Christopher Cherry, CFO |

---

&nbsp;&nbsp;&nbsp;&nbsp;5. The DRS statements representing the Payment
 Shares issuable to U.S. shareholders will have the following legend:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

&nbsp;&nbsp;&nbsp;&nbsp;6. The present treasury order
 adheres to the requirements as set out in the Company's Articles and any and all applicable statutes and regulations.

**DATED** at Vancouver, British Columbia, this 20th day of April, 2022

**ICANIC BRANDS COMPANY INC.**

Per: Per: <br> Brandon Kou, CEO Christopher Cherry, CFO

**SCHEDULE "A"**

*[See attached]*

 

 

**ICANIC BRANDS COMPANY INC.**

**Schedule "A" for Treasury Order dated April 20, 2022**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | (Applicable only to U.S. Address) | (Applicable only to U.S. Address) | (Applicable only to U.S. Address) | (Applicable only to U.S. Address) |  |
| <br> Registered Name | <br> Registered Address | <br> Delivery Address | <br> Number of Shares | <br> Certificate or DRS | Covered<br> Shares Y/N | Acquisition<br> Date | Acquisition<br> Price | <br> CAD or USD | <br> Legend |
| Endeavor Trust Corporation in trust for the former holders of common shares of LEEF Holdings, Inc., 5580 La Jolla Boulevard #395, La Jolla, CA 92037, United States | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | **94784255** | DRS |  |  |  |  | [1][9] |
| Endeavor Trust Corporation in trust for the former holders of common shares of LEEF Holdings, Inc., 5580 La Jolla Boulevard #395, La Jolla, CA 92037, United States | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | **94784255** | DRS |  |  |  |  | [2][9] |
| Endeavor Trust Corporation in trust for the former holders of common shares of LEEF Holdings, Inc., 5580 La Jolla Boulevard #395, La Jolla, CA 92037, United States | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | **94784255** | DRS |  |  |  |  | [3][9] |
| Endeavor Trust Corporation in trust for the former holders of common shares of LEEF Holdings, Inc., 5580 La Jolla Boulevard #395, La Jolla, CA 92037, United States | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | **94784254** | DRS |  |  |  |  | [4][9] |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| Endeavor Trust Corporation in trust for the former holders of common shares of LEEF Holdings, Inc., 5580 La Jolla Boulevard #395, La Jolla, CA 92037, United States | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | **94784254** | DRS | [5][9] |
| Endeavor Trust Corporation in trust for the former holders of common shares of LEEF Holdings, Inc., 5580 La Jolla Boulevard #395, La Jolla, CA 92037, United States | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | **94784254** | DRS | [6][9] |
| Endeavor Trust Corporation in trust for the former holders of common shares of LEEF Holdings, Inc., 5580 La Jolla Boulevard #395, La Jolla, CA 92037, United States | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | **94784254** | DRS | [7][9] |
| Endeavor Trust Corporation in trust for the former holders of common shares of LEEF Holdings, Inc., 5580 La Jolla Boulevard #395, La Jolla, CA 92037, United States | Suite 760 - 777 Hornby Street Vancouver, BC V6Z 1S4 | **94784254** | DRS | [8][9] |
| Total Number of Shares | Total Number of Shares | **758274035** |  |  |

---

---

| | |
|:---|:---|
| **[1]** | **The holder of this security must not trade this security before April 20, 2023.** |
| **[2]** | **The holder of this security must not trade this security before July 20, 2023.** |
| **[3]** | **The holder of this security must not trade this security before October 20, 2023.** |
| **[4]** | **The holder of this security must not trade this security before January 20, 2024.** |
| **[5]** | **The holder of this security must not trade this security before April 20, 2024.** |
| **[6]** | **The holder of this security must not trade this security before July 20, 2024.** |
| **[7]** | **The holder of this security must not trade this security before October 20, 2024.** |
| **[8]** | **The holder of this security must not trade this security before January 20, 2025.** |
| **[9]** | Applies to Payment Shares issuable to U.S. shareholders only: |

---

**THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

**TREASURY ORDER**

TO: ENDEAVOR TRUST CORPORATION <br> Suite 760 – 777 Hornby Street <br> Vancouver, BC, V6Z 1S4

**Attn: Processing Department**

You are authorized and directed to issue certificate or direct registration system statement for common shares of **Icanic Brands Company Inc.** (the "**Company**") to the person named in the attached **Schedule "A"** for the number of common shares set opposite their name.

We confirm that:

&nbsp;&nbsp;&nbsp;&nbsp;1. The
 directors of the Company have duly authorized the allotment and issuance of the fully paid and non-assessable common shares to the
 person named in the attached Schedule "A";

2. The
 Company has received the full consideration payable for the common shares;

3. The
 22,748,223 common shares issued are fully paid at a price of $0.19978 per common share;

4. The
 Certificate or direct registration system statement representing the common shares will have the following legends (see Schedule
 "A"):

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES ISSUABLE UPON EXERCISE THEREOF] HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE AUGUST 21, 2022.

&nbsp;&nbsp;&nbsp;&nbsp;5. The
 Certificate representing 12,317,270 common shares will be delivered to Endeavor Trust Company to be held in escrow pursuant to the
 terms of the Escrow Agreement dated April 20, 2022 among Endeavor Trust Company, Leef Holdings, Inc., Micah Anderson, Mark Smith,
 Kamaldeep Thindal and Jagdish Thindal.

6. The
 present treasury order adheres to the requirements as set out in the Company's Articles and any and all applicable statutes
 and regulations.

7. You
 are hereby authorized to send a copy of this treasury order to the Canadian Securities Exchange and any other relevant regulatory
 authority within five business days following such issuance.

**DATED** at Vancouver, British Columbia, this 20th day of April, 2022

**ICANIC BRANDS COMPANY INC.**

---

| | | | |
|:---|:---|:---|:---|
| Per: | | Per: | ![](pg724_005.jpg) |
|  | Brandon Kou, CEO |  | Christopher Cherry, CFO |

---

**SCHEDULE "A"**

*[See attached]*

**ICANIC BRANDS COMPANY INC.**

**Schedule "A" for Treasury Order dated April 20, 2022**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | | | | | **(Applicable only to U.S. Address)** | **(Applicable only to U.S. Address)** | **(Applicable only to U.S. Address)** | |
| **Registered Name** | **Registered Address** | **Delivery Address** | **Number of Shares** | **Certificate or DRS** | **Covered**<br> **Shares Y/N** | **Acquisition**<br> **Date** | **Acquisition**<br> **Price** | <br>**Legend** |
| Mark Smith | 1187 Gore Trail Cordillera, Colorado United States | Endeavor Trust Corporation Suite 760 – 777 Hornby Street Vancouver, BC, V6Z 1S4 | 12317270 | Restricted Book | Y |  | CAD | [1][2] |
| Mark Smith | 1187 Gore Trail Cordillera, Colorado United States | Mark Smith 1187 Gore Trail<br> Cordillera, Colorado United States | 10430953 | DRS | Y |  | CAD | [1][2] |
| Total Number of Shares | Total Number of Shares | Total Number of Shares | 22748223 |  |  |  |  |  |

---

**LEGENDS**

**[1]**

**THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "U.S. SECURITIES ACT"), OR ANY STATE SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING OR OTHERWISE HOLDING SUCH SECURITIES, AGREES FOR THE BENEFIT OF THE CORPORATION THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED, DIRECTLY OR INDIRECTLY, ONLY (A) TO THE CORPORATION, (B) OUTSIDE THE UNITED STATES IN ACCORDANCE WITH RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE WITH APPLICABLE LOCAL LAWS AND REGULATIONS, (C) IN ACCORDANCE WITH RULE 144 UNDER THE U.S. SECURITIES ACT, IF AVAILABLE; OR (D) IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT, PROVIDED THAT PRIOR TO ANY TRANSFER PURSUANT TO CLAUSES (C) OR (D) ABOVE, AN OPINION OF COUNSEL OF RECOGNIZED STANDING IN FORM AND SUBSTANCE REASONABLY ACCEPTABLE TO THE CORPORATION SHALL FIRST BE PROVIDED TO THE EFFECT THAT SUCH TRANSFER DOES NOT REQUIRE REGISTRATION UNDER THE U.S. SECURITIES ACT OR ANY STATE SECURITIES LAW. DELIVERY OF THIS CERTIFICATE MAY NOT CONSTITUTE "GOOD DELIVERY" IN SETTLEMENT OF TRANSACTIONS ON STOCK EXCHANGES IN CANADA.**

**[2]**

**UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE AUGUST 21, 2022.**

**ESCROW AGREEMENT**

**THIS AGREEMENT** is made as of the 20th day of April, 2022,

**AMONG:**

**LEEF HOLDINGS, INC.,** a corporation existing under the laws of the State of Nevada

**("Leef')**

- and -

**MICAH ANDERSON,** an individual resident in the State of California, in his capacity as representative of the shareholders of Leef

**("Leef Representative")**

- and -

**MARK SMITH,** an individual resident in the State of Colorado

**("Smith")**

- and -

**KAMALDEEP THINDAL,** an individual resident in the Province of British Columbia

**("Kam")**

- and -

**JAGDISH THINDAL,** an individual resident in the Province of British Columbia

**("Jagdish"** and together with Smith and Kam, the **"Grantors")**

- and -

**ENDEAVOR TRUST CORPORATION,** a trust company incorporated under the laws of the Province of British Columbia,

(the **"Escrow Agent"** and together with Leef, the Leef Representative and the Grantors, the **"Parties")**

**RECITALS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Leef
 and lcanic Brands Company Inc. **("lcanic")** entered into a merger agreement (the **"Merger Agreement")** dated January 21, 2022 to combine their respective businesses by way of a three-cornered amalgamation pursuant to the laws of
 Nevada (the **"Transaction").** 

B. Concurrently
 with the execution of the Merger Agreement, Leef, the Leef Representative and the Grantors entered into a conditional purchase agreement
 dated January 21, 2022 (the **"Conditional Purchase Agreement"),** appended as Schedule "A" hereto, pursuant
 to which the Leef Representative, for and on behalf of the shareholders of Leef (the **"Leef Shareholders")** acquired
 an option (the **"Option")** to purchase 25,000,000 common shares of .lcanic held by the Granters (the **"Escrow Shares")** if certain conditions are not satisfied by a certain specified date following the completion of the Transaction.

C. Pursuant
 to the terms of the Conditional Purchase Agreement, the Granters have agreed, among other things, to place all of the Escrowed Shares
 in escrow with the Escrow Agent, to be released in accordance with the terms and conditions herein.

D. The
 parties have requested that the Escrow Agent act as escrow agent in connection with the escrow of the Escrowed Shares and in accordance
 with the terms of this Agreement.

**NOW THEREFORE** in consideration of the premises and mutual representations, warranties, covenants and agreements hereinafter set forth and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereby agree as follows:

**1.** **Appointment of Escrow Agent** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Leef,
 the Leef Representative and the Granters hereby appoint the Escrow Agent to act as the escrow agent in accordance with the terms
 and conditions of this Agreement, and the Escrow Agent hereby agrees to act in accordance with the terms and conditions of this Agreement.
 For the purposes of this Agreement, all references herein to "Escrow Agent" will mean Endeavor Trust Corporation acting
 in the capacity of escrow agent hereunder or any other person that replaces Endeavor Trust Corporation as escrow agent hereunder
 pursuant to the provisions hereof.

(b) The
 Granters shall pay the Escrow Agent fees as laid out in Schedule "B", plus expenses reasonably incurred in connection
 with this Agreement, for acting as escrow agent (the **"Escrow Fees").** 

**2.** **Deposit of Escrowed Shares** 

The Granters agrees with the Leef Representative that the Escrowed Shares will be delivered directly to the Escrow Agent to be deposited into escrow and released in accordance with the terms of this Escrow Agreement. The Escrow Agent will accept the Escrowed Shares upon their delivery and will hold the Escrowed Shares and administer the Escrowed Shares in accordance with the provisions of this Agreement. In addition, the Granters will deliver to the Escrow Agent, concurrent with the execution hereof, an executed and undated stock transfer power of attorney in blank for the Escrowed Shares.

Upon any consolidation, amalgamation, arrangement, merger, redemption, compulsory acquisition or similar transaction of or involving the Escrowed Shares, or a sale or conveyance of all or substantially all the assets of lcanic to any other body corporate, trust, partnership or other entity (each, a **"Change of Control"),** other than the Transaction, the Escrow Agent shall receive and thereafter hold the consideration (the **"Replacement Consideration")** payable to holders of common shares in the capital of lcanic **("lcanic Shares"),** including the Escrowed Shares. The Escrow Agent will accept the Replacement Consideration and will hold and administer the Replacement Consideration in accordance with the provisions of this Agreement on the same terms, *mutatis mutandis,* as the Escrowed Shares. Any cash that forms part of the Replacement Consideration will be held by the Escrow Agent in a segregated interest-bearing account for the benefit of the Leef Representative. If, in connection with a Change of Control, a holder of lcanic Shares may elect a form of consideration (including, without limitation, shares, other securities, cash or other property) from options made available, then the Escrow Agent will elect to receive an equal percentage of each of the different types of consideration offered, unless otherwise directed in writing by the Leef Representative prior to any applicable election deadline.

In the event that lcanic makes any distribution of cash, shares, other securities or other property (the **"Distributed Property")** to the holders of the lcanic Shares, including the Escrowed Shares, the Escrow Agent shall receive and thereafter hold the Distributed Property in respect of the Escrowed Shares. The Escrow Agent will accept the Distributed Property and will hold and administer the Distributed Property in accordance with the provisions of this Agreement on the same terms, *mutatis mutandis,* as the Escrowed Shares. Any cash that forms part of the Distributed Property will be held by the Escrow Agent in a segregated interest-bearing account for the benefit of the Leef Representative.

**3.** **Escrow Release** 

The Escrow Agent shall not release any Escrowed Shares until it receives written notice (the **"Release Notice")** from the Leef Representative and the Grantors that either:

&nbsp;&nbsp;&nbsp;&nbsp;a) a
 Triggering Event (as such term is defined in the Conditional Purchase Agreement) has occurred and it has made a payment of $1.00
 to the Grantors, in which case the Escrow Agent shall be authorized to release the Escrowed Shares to the Leef Representative in
 accordance with the Release Notice; or

b) the
 Conditions (as such term is defined in the Conditional Purchase Agreement) have been satisfied, in which case the Escrow Agent shall
 be authorized to release the Escrowed Shares to the Grantors in accordance with the Release Notice.

Upon receipt of the Release Notice in the case of Section 3(a}, the Escrow Agent shall be entitled to and shall take all steps necessary to re-register and deliver the Escrowed Shares as so directed by the Leef Representative in the Release Notice.

**4.** **Rights of Escrow Agent** 

**4.1** **Escrow Agent Not a Trustee** 

The Escrow Agent accepts duties and responsibilities under this Agreement and the Escrowed Shares and any share certificates or other evidence of these securities, solely as a custodian, bailee and agent. No trust is intended to be, or is or will be, created hereby and the Escrow Agent shall owe no duties hereunder as a trustee.

**4.2** **Escrow Agent Not Responsible for Genuineness** 

The Escrow Agent will not be responsible or liable in any manner whatsoever for the sufficiency, correctness, genuineness or validity of any Escrowed Shares deposited with it.

**4.3** **Escrow Agent Not Responsible for Furnished Information** 

The Escrow Agent will have no responsibility for seeking, obtaining, compiling, preparing or determining the accuracy of any information or document, including the representative capacity in which a party purports to act, that the Escrow Agent receives as a condition to a release from escrow or a transfer of the Escrowed Shares within escrow under this Agreement.

**4.4** **Escrow Agent Not Responsible after Release** 

The Escrow Agent will have no responsibility for the Escrowed Shares that it has released in accordance with this Agreement.

**4.5** **Additional Provisions** 

(1) The Escrow Agent will be protected in acting and relying reasonably upon any notice, direction, instruction, order, certificate, confirmation, request, waiver, consent, receipt, statutory declaration or other paper or document (collectively referred to as **"Documents")** furnished to it and purportedly signed by any officer or person required to or entitled to execute and deliver to the Escrow Agent any such Document in connection with this Agreement, not only as to its due execution and the validity and effectiveness of its provisions, but also as to the truth or accuracy of any information therein contained, which it in good faith believes to be genuine.

(2) The Escrow Agent will not be bound by any notice of a claim or demand with respect thereto, or any waiver, modification, amendment, termination or rescission of this Agreement unless received by it in writing, and signed by the other Parties and, if required, approved by the securities regulators with jurisdiction and, if the duties or indemnification of the Escrow Agent in this Agreement are affected, unless it has given its prior written consent.

(3) The Escrow Agent may consult with or retain such legal counsel and advisors as it may reasonably require for the purpose of discharging its duties or determining its rights under this Agreement and may rely and act upon the advice of such counsel or advisor. The Escrow Agent will give written notice to Leef, the Leef Representative and the Grantors as soon as practicable that it has retained legal counsel or other advisors. Grantors will pay or reimburse the Escrow Agent for any reasonable fees, expenses and disbursements of such counsel or advisors.

(4) In the event of any disagreement arising under the terms of this Agreement, the Escrow Agent will be entitled, at its option, to refuse to comply with any and all demands whatsoever until the dispute is settled either by a written agreement among the Parties or by a court of competent jurisdiction.

(5) The Escrow Agent will have no duties or responsibilities except as expressly provided in this Agreement, including any agreement referred to in this Agreement, to which the Escrow Agent is not a party.

(6) The Escrow Agent will have the right not to act and will not be liable for refusing to act unless it has received clear and reasonable documentation that complies with the terms of this Agreement. Such documentation must not require the exercise of any discretion or independent judgment.

(7) The Escrow Agent is authorized to cancel any share certificate delivered to it and hold the Escrowed Shares in electronic or uncertificated form only, pending release of such securities from escrow.

**4.6** **Limitation of Liability of Escrow Agent** 

The Escrow Agent will not be liable to any of the Parties hereunder for any action taken or omitted to be taken by it under or in connection with this Agreement, except for losses directly, principally and immediately caused by its bad faith, willful misconduct or gross negligence. Under no circumstances will the Escrow Agent be liable for any special, indirect, incidental, consequential, exemplary, aggravated or punitive losses or damages hereunder, including any loss of profits, whether foreseeable or unforeseeable. Notwithstanding the foregoing or any other provision of this Agreement, in no event will the collective liability of the Escrow Agent under or in connection with this Agreement to any one or more Parties, except for losses directly caused by its bad faith, willful misconduct or gross negligence, exceed the amount of its annual fees under this Agreement or the amount of $3,000.00, whichever amount shall be greater.

**4.7** **Remuneration of Escrow Agent** 

The Grantors will pay the Escrow Agent reasonable remuneration for its services under this Agreement, which fees are subject to revision from time to time on 30 days' written notice. The Grantors will reimburse the Escrow Agent for its expenses and disbursements. Any amount due under this section and unpaid 30 days after request for such payment, will bear interest from the expiration of such period at a rate per annum equal to the then current rate charged by the Escrow Agent, payable on demand.

In the event the Grantors fail to pay the Escrow Agent any amounts owing to the Escrow Agent hereunder, the Escrow Agent shall have the right not to act (including the right not to release the Escrowed Shares from escrow) and will not be liable for refusing to act until it has been fully paid all amounts owing to it hereunder. Further, in the event that the Grantors fail to pay the Escrow Agent its reasonable remuneration for its services hereunder, the Escrow Agent shall be entitled to charge Leef or the Leef Representative for any release of Escrowed Shares and shall have the right not to act (including the right not to release the Escrowed Shares) until such amounts have been paid to the Escrow Agent.

In the event that the Grantors have failed to pay the amounts owing the Escrow Agent hereunder, the Escrow Agent shall not be liable for any loss caused by a delay in the release of the Escrowed Shares.

**5.** **lnterpleader** 

The Escrow Agent may, in its sole discretion, deliver the Escrowed Shares into court by way of interpleader if any person, whether or not a party hereto, sues or threatens to sue the Escrow Agent in connection with the Escrowed Shares or the actions or omissions of any of the parties hereunder including the Escrow Agent or if the Escrow Agent is unable or unwilling to continue acting and there is no replacement under Section 6 within 30 days after the written notice of resignation in Section 6 or in the event of any disagreement or apparent disagreement between the parties hereto resulting in conflicting claims or demands with respect to the Escrowed Shares or if any of the parties hereto, including the Escrow Agent, are in or appear to be in disagreement about the interpretation of this Agreement or about the rights and obligations of the Escrow Agent or the propriety of an action contemplated by the Escrow Agent under this Agreement. Upon the Escrow Agent making such delivery, the Escrow Agent shall be released from all its duties and obligations under this Agreement.

**6.** **Resignation of Escrow Agent** 

(1) If
 the Escrow Agent wishes to resign as escrow agent, the Escrow Agent will give written notice to Leef, the Leef Representative and
 the Grantors.

(2) If
 Leef, the Leef Representative and the Grantors wish to terminate the Escrow Agent as escrow agent, Leef, the Leef Representative
 and the Grantors will give written notice to the Escrow Agent.

(3) If
 the Escrow Agent resigns or is terminated, the Grantors will be responsible for ensuring that the Escrow Agent is replaced not later
 than the resignation or termination date by another escrow agent that is acceptable to the securities regulators having jurisdiction
 in the matter and that has accepted such appointment, which appointment will be binding on Leef, the Leef Representative and the
 Grantors.

(4) The
 resignation or termination of the Escrow Agent will be effective, and the Escrow Agent will cease to be bound by this Agreement,
 on the date that is 60 days after the date of receipt of the notices referred to above or on such other date as the Parties may agree
 upon (the **"resignation or termination date"),** provided that the resignation or termination date will not be less
 than 10 business days before a release date.

(5) If
 the Grantors have not appointed a successor escrow agent within 60 days of the resignation or termination date, the Escrow Agent
 will apply, at the Grantor's expense, to a court of competent jurisdiction for the appointment of a successor escrow agent
 and the duties and responsibilities of the Escrow Agent will cease immediately upon such appointment.

(6) On
 any new appointment under this section, the successor Escrow Agent will be vested with the same powers, rights, duties and obligations
 as if it had been originally named herein as Escrow Agent, without any further assurance, conveyance, act or deed. The predecessor
 Escrow Agent, upon receipt of payment for any outstanding account for its services and expenses then unpaid, will transfer, deliver
 and pay over to the successor Escrow Agent, who will be entitled to receive, all securities, records or other property on deposit
 with the predecessor Escrow Agent in relation to this Agreement and the predecessor Escrow Agent will thereupon be discharged as
 Escrow Agent.

(7) If
 any changes are made to Part 4 of this Agreement as a result of the appointment of the successor Escrow Agent, those changes must
 not be inconsistent with the terms of this Agreement.

**7.** **Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Indemnity.** In consideration of the premises and of the Escrow Agent agreeing to act hereunder, Leef, the Leef Representative and Grantors
 agree to save, defend and keep harmless and fully indemnify the Escrow Agent, its partners, associates, employees and agents, and
 their respective heirs, executors, administrators, successors and assigns, from and against all losses, costs, liabilities, charges,
 suits, demands, claims, damages (including consequential damages) and expenses of any nature which the Escrow Agent, its successors
 or assigns, may at any time hereafter bear, sustain, suffer or be put to for or by any reason of or on account of its acting as escrow
 agent or anything in any matter relating thereto or by reason of the Escrow Agent's compliance with the terms hereof. Notwithstanding
 any other provision of this Agreement, the Escrow Agent's liability shall be limited, in the aggregate, to the amount of fees
 paid by the Grantors to the Escrow Agent under this Agreement, provided that the foregoing shall not apply to any liability arising
 from the Escrow Agent's bad faith, fraud, wilful misconduct or gross negligence.

(b) **Not Obliged to Defend.** Without restricting the foregoing indemnity, if proceedings are taken by arbitration or in any court respecting
 the Escrowed Shares, the Escrow Agent shall not be obliged to defend or otherwise participate in any such proceedings until it shall
 have such security as the Escrow Agent determines, in its sole discretion, to be adequate for its costs in such proceedings in addition
 to the indemnity set out above.

(c) **Survival.** The provisions of Section 7(a) and Section 7(b) will survive the resignation or removal of the Escrow Agent or the termination
 of this Agreement.

(d) **Not to Expend Own Funds.** None of the provisions contained in this Agreement shall require the Escrow Agent to expend or to risk its
 own funds or otherwise to incur financial liability in the performance of any of its duties or in the exercise of any of its rights
 or powers unless funded and indemnified as aforesaid.

**8.** **Expenses** 

The Escrow Agent shall be entitled to be reimbursed for all documented expenses reasonably incurred in connection with acting hereunder, including without limitation, legal fees paid by the Escrow Agent in respect of this Agreement, such expenses and fees to be borne by the Granters. The provisions of this Section 8 will survive the resignation or removal of the Escrow Agent or the termination of this Agreement.

**9.** **General** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Notices.** Any notice, certificate, consent, determination or other communication required or permitted to be given or made under this Agreement
 shall be in writing and shall be effectively given and made if (i) delivered personally, (ii) sent by prepaid courier service or
 mail, or (iii) sent by email, or other similar means of electronic communication, in each case to the applicable address set out
 below:

If to Leef:

Leef Holdings, Inc.

5580 La Jolla Boulevard #395

La Jolla, CA 92037

Attention: Micah Anderson

Email:micah@leefca.com

If to the Leef Representative:

Email:micah@leefca.com

If to Smith:

1187 Gore Trail

Cordillera, Colorado 81632

United States

Email: austinenergygroup@gmail.com

If to Kam or Jagdish:

Email: kam@ccpartnersinc.com

If to the Escrow Agent:

Endeavor Trust Corporation

702 - 777 Hornby Street

Vancouver, BC V6Z 1S4

Attention: Securities Processing

Email:admin@endeavortrust.com

Any such communication so given or made shall be deemed to have been given or made and to have been received on the day of delivery if delivered, or on the day of emailing or sending by other means of recorded electronic communication, provided that such day in either event is a business day (at the place of receipt) and the communication is so delivered, emailed, or sent prior to 4:30pm (at the place of receipt) on such day. Otherwise, such communication shall be deemed to have been given and made and to have been received on the next following business day. Any such communication sent by mail shall be deemed to have been given and made and to have been received on the fifth business day following the mailing thereof; provided however that no such communication shall be mailed during any actual or apprehended disruption of postal services. Any such communication given or made in any other manner shall be deemed to have been given or made and to have been received only upon actual receipt.

Any party may from time to time change its address under this Section 9(a) by notice to the other parties given in the manner provided by this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Time of Essence.** Time shall be of the essence of this Agreement in all respects.

(c) **Further Assurances.** Each party shall promptly do, execute, deliver, or cause to be done, executed and delivered all further acts, documents
 and things in connection with this Agreement that another party may reasonably require for the purposes of giving effect to this
 Agreement.

(d) **Successors and Assigns.** This Agreement shall enure to the benefit of, and be binding on, the parties and their respective successors and
 permitted assigns. No party may assign or transfer, whether absolutely, by way of security or otherwise, all or any part of its respective
 rights or obligations under this Agreement without the prior consent of the other parties.

(e) **Amendment.** No amendment of this Agreement will be effective unless made in writing and signed by all of the parties.

(f) **Entire Agreement.** This Agreement constitutes the entire agreement between the parties pertaining to the subject matter of this Agreement
 and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written.There are no conditions,
 warranties, representations or other agreements between the parties in connection with the subject matter of this Agreement (whether
 oral or written, express or implied, statutory or otherwise) except as specifically set out in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Waiver.** A waiver of any default, breach, or non-compliance under this Agreement is not effective
 unless in writing and signed by the parties to be bound by the waiver. No waiver shall be
 inferred from or implied by any failure to act or delay in acting by a party in respect of
 any default, breach or non-observance or by anything done or omitted to be done by another
 party. The waiver by a party of any default, breach, or non-compliance under this Agreement
 shall not operate as a waiver of that party's rights under this Agreement in respect
 of any continuing or subsequent default, breach or non-observance (whether of the same or
 any other nature).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) **Severability.** Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
 shall, as to that jurisdiction, be ineffective to the extent of such prohibition or unenforceability
 and shall be severed from the balance of this Agreement, all without affecting the remaining
 provisions of this Agreement or affecting the validity or enforceability of such provision
 in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Governing Law.** This Agreement shall be governed by and construed in accordance with the laws of
 the Province of British Columbia and the laws of Canada applicable in that Province and shall
 be treated, in all respects, as an British Columbia contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) **Counterparts.** This
 Agreement may be executed by the parties in separate counterparts (by original or facsimile signature) each of which when so executed
 and delivered shall be deemed to be an original, and all such counterparts shall together be construed as one and the same document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) **Termination.** This
 Agreement may be terminated at any time by and upon the receipt of the Escrow Agent of a written notice of termination executed by
 Leef, the Leef Representative and the Grantors, directing the release of the Escrowed Shares to the Grantors and such termination will
 be effective immediately after compliance by the Escrow Agent with such direction. This Agreement shall automatically terminate if
 and when all of the Escrowed Shares shall have been distributed by the Escrow Agent in accordance with this Agreement.

**10.** **Privacy** 

The parties acknowledge that federal and/or provincial legislation that addresses the protection of individuals' personal information (collectively, **"Privacy Laws")** applies to certain obligations and activities under this Agreement. Notwithstanding any other provision of this Agreement, neither party shall take or direct any action that would contravene, or cause the other to contravene, applicable Privacy Laws. Leef, the Leef Representative and the Grantors shall, prior to transferring or causing to be transferred personal information to the Escrow Agent, obtain and retain required consents of the relevant individuals to the collection, use and disclosure of their personal information, or shall have determined that such consents either have previously been given upon which the parties can rely or are not required under the Privacy Laws. The Escrow Agent shall use commercially-reasonable efforts to ensure that its services hereunder comply with Privacy Laws. Specifically, the Escrow Agent agrees: (i) to have a designated chief privacy officer; (ii) to maintain policies and procedures to protect personal information and to receive and respond to any privacy complaint or inquiry; (iii) to use personal information solely for the purposes of providing its services under or ancillary to this Agreement and to comply with applicable laws and not to use it for any other purpose except with the consent of or direction from Leef, the Leef Representative and the Granters or the individual involved or as permitted by Privacy Laws; (iv) not to sell or otherwise improperly disclose personal information to any third party; and (v) to employ administrative, physical and technological safeguards to reasonably secure and protect personal information against loss, theft, or unauthorized access, use or modification.

**11.** **Right Not to Act** 

The Escrow Agent shall retain the right not to act and shall not be liable for refusing to act if, due to a lack of information or for any other reason whatsoever, the Escrow Agent, in its sole judgment, acting reasonably, determines that such act might cause it to be in non-compliance with any applicable anti-money laundering or anti-terrorist legislation, regulation or guideline. Further, should the Escrow Agent, in its sole judgment, acting reasonably, determine at any time that its acting under this Agreement has resulted in its being in non-compliance with any applicable anti money laundering or anti-terrorist legislation, regulation or guideline, then it shall have the right to resign on 10 days prior written notice sent to all parties hereby provided that: (i) the Escrow Agent's written notice shall describe the circumstances of such non-compliance; and (ii) that if such circumstances are rectified to the Escrow Agent's satisfaction within such 10 day period, then such resignation shall not be effective.

**[SIGNATURE PAGE FOLLOWS]**

**IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written.

---

| | | |
|:---|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |  |
| Per: |  |  |
|  | Authorized Signatory |  |
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |  |
| Per: | ![](pg746-759_001.jpg) |  |
|  | Authorized Signatory |  |
| Per: | ![](pg746-759_002.jpg) |  |
|  | Authorized Signatory |  |
|  |  | **MICAH ANDERSON** |
|  |  | **MARK SMITH** |
|  |  | **KAMALDEEP THINDAL** |
|  |  | **JAGDISH THINDAL** |

---

**IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written.

---

| | | |
|:---|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |  |
| Per: | */s/ Micah Anderson* |  |
|  | Authorized Signatory |  |
| **NATIONAL SECURITIES ADMINISTRATORS LTD.** | **NATIONAL SECURITIES ADMINISTRATORS LTD.** |  |
| Per: | |  |
|  | Authorized Signatory |  |
| Per: | |  |
|  | Authorized Signatory |  |
|  |  | */s/ Micah Anderson* |
|  |  | **MICAH ANDERSON** |
|  |  | **MARK SMITH** |
|  |  | **KAMALDEEP THINDAL** |
|  |  | **JAGDISH THINDAL** |

---

**IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written.

---

| | | |
|:---|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |  |
| Per: | |  |
|  | Authorized Signatory |  |
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |  |
| Per: | |  |
|  | Authorized Signatory |  |
| Per: | |  |
|  | Authorized Signatory |  |
|  |  | **MICAH ANDERSON** |
|  |  | **MARK SMITH** |
|  |  | */s/ Kamaldeep Thindal* |
|  |  | **KAMALDEEP THINDAL** |
|  |  | **JAGDISH THINDAL** |

---

**IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written

---

| | | |
|:---|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |  |
| Per: | |  |
|  | Authorized Signatory |  |
| **ENDEAVOR TRUST CORPORATION** | **ENDEAVOR TRUST CORPORATION** |  |
| Per: | |  |
|  | Authorized Signatory |  |
| Per: | |  |
|  | Authorized Signatory |  |
|  |  | **MICAH ANDERSON** |
|  |  | **MARK SMITH** |
|  |  | **KAMALDEEP THINDAL** |
|  |  | */s/ Jagdish Thindal* |
|  |  | **JAGDISH THINDAL** |

---

**IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written.

---

| | | |
|:---|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |  |
| Per: | */s/ Micah Anderson* |  |
|  | Authorized Signatory |  |
| **NATIONAL SECURITIES ADMINISTRATORS LTD.** | **NATIONAL SECURITIES ADMINISTRATORS LTD.** |  |
| Per: | |  |
|  | Authorized Signatory |  |
| Per: | |  |
|  | Authorized Signatory |  |
|  |  | */s/ Micah Anderson* |
|  |  | **MICAH ANDERSON** |
|  |  | */s/ Mark Smith* |
|  |  | **MARK SMITH** |
|  |  | **KAMALDEEP THINDAL** |
|  |  | **JAGDISH THINDAL** |

---

**IN WITNESS WHEREOF** the parties have executed and delivered this Agreement on the day and year first above written.

---

| | | |
|:---|:---|:---|
| **LEEF HOLDINGS, INC.** | **LEEF HOLDINGS, INC.** |  |
| Per: | */s/ Micah Anderson* |  |
|  | Authorized Signatory |  |
| **NATIONAL SECURITIES ADMINISTRATORS LTD.** | **NATIONAL SECURITIES ADMINISTRATORS LTD.** |  |
| Per: | |  |
|  | Authorized Signatory |  |
| Per: | |  |
|  | Authorized Signatory |  |
|  |  | */s/ Micah Anderson* |
|  |  | **MICAH ANDERSON** |
|  |  | **MARK SMITH** |
|  |  | **KAMALDEEP THINDAL** |
|  |  | **JAGDISH THINDAL** |

---

**Schedule A**

**Conditional Purchase Agreement**

**[See Attached)**

**Schedule B** 

**Schedule of Fees**

---

| | |
|:---|:---|
| **Endeavor Trust Corooration** | **Endeavor Trust Corooration** |
| **Fee Schedule Sunnlemental** | **Fee Schedule Sunnlemental** |
| Escrow Agreement: | $2500 |
| Certificate Exchange: | Hourlv ($150/hour) |
| Certificates: | $20 each |
| Courier Cost: | Hourlv plus fees charged bv Courier |
| Mail: | Hourlv olus oostai,e and minting |
| Lost Securities Bond: | Paid bv shareholder to insurance comoanv |
| **Note: All fees are subject to applicable taxes.**<br> **See Fee schedule for comnlete list of fees.** | **Note: All fees are subject to applicable taxes.**<br> **See Fee schedule for comnlete list of fees.** |

---

![](pg746-759_003.jpg)

For value received the undersigned hereby sells, assigns and transfers unto

---

| |
|:---|
| **Insert the name and address of transferee** |
| shares represented by this certificate and does hereby irrevocably constitute and appoint |
| the attorney of the undersigned to transfer the said shares on the books of the Company with full power of substitution in the premises. |

---

DATED ________________________    <br> Signature of Shareholder Signature of Guarantor

**Signature Guarantee:**

**The Signature on this assignment must correspond with the name as written upon the face of the certificate(s), in every particular, without alteration or enlargement, or any change whatsoever and must be guaranteed by a major Canadian Schedule 1 Chartered bank or a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, MSP).**

**The Guarantor must affix a stamp bearing the actual words "Signature Guaranteed".**

**In the USA, Signature guarantees must be done by members of a "Medallion Signature Guarantee Program" only.**

**Signature guarantees are not accepted from Treasury Branches, Credit Unions, or Caisses Populaires unless they are members of the Stamp Medallion Program.**

![](pg746-759_004.jpg)

For value received the undersigned hereby sells, assigns and transfers unto

---

| |
|:---|
| **Insert the name and address of transferee** |
| shares represented by this certificate and does hereby irrevocably constitute and appoint |
| the attorney of the undersigned to transfer the said shares on the books of the Company with full power of substitution in the premises. |

---

DATED ________________________    <br> Signature of Shareholder Signature of Guarantor

**Signature Guarantee:**

**The Signature on this assignment must correspond with the name as written upon the face of the certificate(s), in every particular, without alteration or enlargement, or any change whatsoever and must be guaranteed by a major Canadian Schedule 1 Chartered bank or a member of an acceptable Medallion Signature Guarantee Program (STAMP, SEMP, MSP).**

**The Guarantor must affix a stamp bearing the actual words "Signature Guaranteed".**

**In the USA, Signature guarantees must be done by members of a "Medallion Signature Guarantee Program" only.**

**Signature guarantees are not accepted from Treasury Branches, Credit Unions, or Caisses Populaires unless they are members of the Stamp Medallion Program.**

## Exhibit 21.1

**Exhibit 21.1**

The following is a list of the Company's wholly-owned and partially owned operating subsidiaries:

---

| | | | |
|:---|:---|:---|:---|
| **Name of Consolidated Subsidiary or Entity** | **Purpose** | **Jurisdiction** | **Attributable Interest** |
| Aya Biosciences, Inc. | (1) Pharmaceutical | US | 100% |
| Anderson Development SB, LLC. | Cultivation | US | 100% |
| Paleo Paw Corp. | CBD Wellness | US | 100% |
| Payne Distribution, LLC. | Distribution | US | 100% |
| LEEF Brands, Inc. | Holding Company | Canada | 100% |
| LEEF Holdings, Inc. | Holding Company | US | 100% |
| Preferred Brand LLC. | Manufacturing | US | 100% |
| Seven Zero Seven, LLC. | Manufacturing | US | 100% |
| LEEF Management, LLC. | Payroll | US | 100% |
| 1127466 B.C. Ltd. | Real Estate | Canada | 100% |
| 1200665 B.C. Ltd. | Real Estate | Canada | 100% |
| SCRCB, LLC. | Cultivation | US | 100% |
| The Leaf at 73740, LLC. | Dispensary | US | 100% |
| Green Cross Nevada LLC. | Manufacturing | US | 100% |
| V6E Holdings, LLC. | Manufacturing | US | 100% |
| LEEF Labs NY LLC. | Manufacturing | US | 100% |
| LEEF Labs NJ, LLC, | Manufacturing | US | 100% |
| Eaton Processing LLC | Manufacturing | US | 100% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(1)* *As of June 30, 2025, the Company owned a 100% interest in Aya Biosciences, Inc. As of June 30, 2024, the Company owned a 55.65% interest in Aya Biosciences, Inc.*

## Exhibit 23.1

**Exhibit 23.1**

![](ex23-1_001.jpg)

**<u>CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</u>**

We hereby consent to the incorporation in this Registration Statement on Form S-1, of our report dated April 30, 2025, of LEEF Brands, Inc. relating to the audits of the consolidated financial statements as of December 31, 2024 and 2023 and for the periods then ended. and the reference to our firm under the caption "Experts" in the Registration Statement.

*/s/ M&K CPA's, PLLC*

The Woodlands, TX

August 26, 2025

## Ex-Filing

?xml version='1.0' encoding='ASCII'?

**Exhibit 107**

**CALCULATION OF FILING FEE TABLES**

Form S-1

**(Form Type)**

Leef Brands, Inc.

**(Exact Name of Registrant as Specified in its Charter)**

Table 1: Newly Registered Securities

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Security <br>Type | Security<br> Class Title | Fee<br> Calculation<br> or Carry<br> Forward<br> Rule | Amount <br>Registered | Proposed<br> Maximum<br> Offering<br> Price Per<br> Share | Proposed<br> Maximum<br> Aggregate<br> Offering<br> Price | Fee Rate | Amount of<br> Registration<br> Fee |
| Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities | Newly Registered Securities |
| Fees to be <br>Paid | Equity | Common Stock | Rule 457(o) | 1000000 | $25.00 | $25000000 | $0.00015310 | $3827.50 |
| Fees <br>Previously <br>Paid |  |  |  |  |  |  |  |  |
| Carry<br> Forward<br> Securities |  |  |  |  |  |  |  |  |
| Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities | Carry Forward Securities |
|  | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts | Total Offering Amounts |  | $25000000 |  | $3827.50 |
|  | Total Fees Previously Paid | Total Fees Previously Paid | Total Fees Previously Paid | Total Fees Previously Paid |  |  |  | $0.00 |
|  | Total Fees Offsets | Total Fees Offsets | Total Fees Offsets | Total Fees Offsets |  |  |  | $0.00 |
|  | Net Fee Due | Net Fee Due | Net Fee Due | Net Fee Due |  |  |  | $3827.50 |

---