Document:

EX-10.5

 Exhibit 10.5 

[***] Certain information in this document, marked by brackets, has been excluded pursuant to Item 601(b)(10)(iv) of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed.

 LICENSE AGREEMENT 
 This
LICENSE AGREEMENT (this “Agreement”) is entered into as of March 13th, 2019 (the “Effective
Date”) between Pathway Rx Inc., an Alberta corporation (“Pathway”), Sundial Growers Inc., an Alberta corporation (“Sundial”), Igor Kovalchuk (“Igor”), Olga Kovalchuk
(“Olga”) and Darryl Hudson (“Darryl” and together with Igor and Olga, the “Vendors”). 

WHEREAS Sundial and the Vendors have entered into a share purchase agreement dated March 13th, 2019 with respect to the purchase and sale of 50% of the issued and outstanding shares in the capital of Pathway by the Vendors to Sundial (the “Share Purchase Agreement”); 

AND WHEREAS it is a condition of the closing of the transactions contemplated by the Share Purchase Agreement that the parties enter
into this Agreement. 
 NOW THEREFORE, THIS AGREEMENT WITNESSES THAT in consideration of the closing of the transactions contemplated
by the Share Purchase Agreement and the covenants and agreements herein contained (the receipt and sufficiency of which are hereby acknowledged), the parties hereto agree as follows: 

 

	1.	 DEFINITIONS. As used in this Agreement: 

1.1 “CannSelect IP” means the Technology relating to the CannSelect Products and all Intellectual Property Rights
therein owned by Pathway, including all CannSelect Marks. 
 1.2 “CannSelect Marks” means the Trademarks used by
Pathway in association with the CannSelect Products. 
 1.3 “CannSelect Products” means the Products set forth in
Schedule A. 
 1.4 “Commercialize” means to Use and otherwise exploit worldwide in any manner whatsoever and grant
sublicenses (and permit the granting of sublicenses) to do any or all of the foregoing. 
 1.5 “Common Shares” means
common shares in the capital of Sundial. 
 1.6 “Developers” means the individuals who conceived, created, developed,
reduced to practice, written, and tested any of the Pathway IP. 
 1.7 “Future IP” means any Intellectual Property
Rights filed, acquired, or otherwise obtained by Pathway after the Effective Date. 
 1.8 “Gross Revenues” means all
revenues, receipts and monies directly or indirectly collected or received whether for cash or credit or by way of any benefit, advantage or concession from the Use of any Products, any Pathway IP or any Sundial Improvements, that are actually
received by Sundial or an affiliate of Sundial. 

  
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 1.9 “Improvements” means any improvements, enhancements,
modifications, alterations, adaptations, translations, and any other changes to any Technology, and any Intellectual Property Rights therein. 

1.10 “Intellectual Property Rights” means any and all proprietary rights provided under (a) patent law,
(b) copyright law, (c) trade-mark law, (d) design patent or industrial design law, (e) semi-conductor chip or mask work law, (f) plant breeder’s rights law, and (g) any other applicable statutory provision or
common law principle, including trade secret law, that may provide a right in ideas, formulae, algorithms, concepts, inventions, plants, strains, or know-how, or the expression or use thereof. 

1.11 “Net Revenue” means the Gross Revenue less the following deductions, as demonstrable in written records of
Sundial: 
  

	 	(a)	 [***] 

  

	 	(b)	 [***] 

  

	 	(c)	 [***] 

  

	 	(d)	 [***] 

  

	 	(e)	 [***] 

  

	 	(f)	 [***] 

  

	 	(g)	 [***] 

1.12 “Party” means Pathway or Sundial, as the context requires, and “Parties” means Pathway and Sundial. 

1.13 “Patents” will include (i) all patents and patent applications, (ii) any substitutions, divisions,
continuations, continuations-in-part (but only to the extent that they cover the same invention claimed in the foregoing), revisions, reissues, renewals, registrations,
confirmations, re-examinations, extensions, supplementary protection certificates, patent term extensions, patent term adjustments, and the like, and any provisional applications, of any such patents or patent
applications, and (iii) any foreign or international equivalent of any of the foregoing. 
 1.14 “Pathway
Improvements” means any Improvements on any Pathway IP, that Pathway creates, develops, conceives, or reduces to practice after the Effective Date. 

1.15 “Pathway IP” means: (a) the Pathway Patents; (b) all other Technology set forth in Schedule B;
(c) the Pathway Improvements; (d) any Future IP for which Sundial has exercised the Right of First Refusal; and (e) all Intellectual Property Rights in and to all of the foregoing. 

1.16 “Pathway Patents” means the Patents owned by Pathway as of the Effective Date, including those listed in Schedule
B. 

  
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 1.17 “Products” means any product or service, that, in whole or in
part is developed, made, used, sold, distributed, imported or exported by utilizing or incorporating in any way, directly or indirectly any subject matter covered by any Pathway IP or any Sundial Improvements. 

1.18 “Pro Rata Portion” has the meaning set out in the Share Purchase Agreement. 

1.19 “Royalty Due Date” means January 1 of each calendar year. 

1.20 “Royalty Activity” means sale of any Products, other Use of the Pathway IP or any Use of the Sundial Improvements.

 1.21 “Technology” all know-how, inventions, plant varieties, discoveries,
data, results, information, trade secrets, ideas, concepts, formulas, techniques, methods, processes, developments, materials or compositions of matter of any type or kind, expertise, formulas, technology, stability data, research, pre-clinical and clinical data, regulatory information, manufacturing process, scale-up and other technical data, reports, documentation and samples, whether or not patented
or patentable. 
 1.22 “Use” means to use, grow, cultivate, harvest, process, operate, make, have made, manufacture,
lease, sell, offer to sell, license, assign, transfer, market, distribute, sub-license, import, export, reproduce, modify, adapt, create derivative works, support, translate, port, practice any method or
process claimed in any Patent, benefit from or exploit any Intellectual Property Rights or have done any of such things above by any means and any forms. 

1.23 “Warrants” mean Common Share purchase warrants of Sundial. 

 

	2.	 LICENSES 

2.1 Intellectual Property License. Pathway hereby grants to Sundial a fully
paid-up, perpetual, exclusive, worldwide, irrevocable (other than for breach of this Agreement by Sundial) license, with the right to sublicense through multiple levels of sublicensees, under the Pathway IP to
Commercialize the Pathway IP in any manner. 
 2.2 Improvements. Sundial will own all rights, title, and interests,
including all Intellectual Property Rights, in and to any Improvements in and to the Pathway IP that Sundial creates, develops, conceives, or reduces to practice after the Effective Date (collectively, the “Sundial Improvements”),
and will, for the avoidance of doubt, have the right to Commercialize the Sundial Improvements in any manner and for any purpose. For further avoidance of doubt, any Improvements that Sundial creates, develops, conceives, or reduces to practice
after the Effective Date based on Sundial Improvements are also Sundial Improvements. 
 2.3 CannSelect Product License.
Pathway hereby grants to Sundial a fully paid-up, perpetual, exclusive, worldwide, irrevocable (other than for breach of this Agreement by Sundial) license, under the CannSelect IP, to distribute and sell
the CannSelect Products. 

  
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	3.	 FUTURE INTELLECTUAL PROPERTY 

3.1 Upon the filing or acquisition of any Future IP, Pathway shall notify Sundial within [***] days of such filing or acquisition and
provide Sundial, in the same notice, a right to receive an exclusive license to such Future IP on the same terms as set forth in Section 2.1 and 2.2 hereof (the “Right of First Refusal”). Sundial shall have [***] days upon
receipt of such notice to exercise the Right of First Refusal by written notice to Pathway. Upon the exercise of such right of First Refusal, the applicable Future IP will be deemed to be included in the Pathway IP under this Agreement. 

3.2 Within [***] (the “Test Period”) of Sundial’s election to receive a license on the Future IP (the
“Elected Future IP”) in accordance with Section 3.1 (the “Election”), if Sundial does not generate annual Gross Revenue that meets a minimum revenue target for the Elected Future IP as agreed upon by the
Parties at the time of the Election (the “Minimum Revenue Target”) for the year immediately prior to each Royalty Due date from the sale of Products using the Elected Future IP and other Use of the Elected Future IP, Pathway shall
have the right to assign, license or otherwise commercialize the applicable Elected Future IP to a third party on terms within Pathway’s discretion with notice to Sundial, subject to confidentiality obligations of Pathways to the third party,
provided however that, when assigning, licensing, or otherwise commercializing such Elected Future IP, Pathway will maintain the necessary rights to allow it to license the Elected Future IP to Sundial as required under the terms and conditions of
this Agreement. The Minimum Revenue Target shall be prorated to adjust for any partial years occurring during the Test Period. 
  

	4.	 ROYALTY 

 

	 	4.1	 Pathway Royalty. 

 

	 	(a)	 Sundial shall pay to Pathway a royalty equal to three (3%) percent on the Gross Revenues received by Sundial
that is derived from any Royalty Activities; 

  

	 	(b)	 if the combined Royalty Activities for any one calendar year generates over $[***] in Gross Revenue for
Sundial, Sundial shall pay Pathway an additional 2% royalty on all Gross Revenue derived from the Royalty Activities during that calendar year; 

  

	 	(c)	 for every $[***] in Gross Revenues received by Sundial that is generated by Royalty Activities, Sundial shall
grant to the Vendors [***] Warrants, each with an exercise price of $2.90 per Common Share, to vest upon issuance and expire five years after issuance, up to a maximum total of 175,000 Warrants, such Warrants to be registered in Pro Rata Portion in
the names of each of the Vendors; 

  

	 	(d)	 Sundial shall pay Pathway an amount equal to 50% of Net Revenue receive by Sundial from the sale of CannSelect
Products or other Use of the CannSelect IP; and 

  
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	 	(e)	 Sundial shall pay Pathway $1,400,000 over four (4) years in annual payments of $350,000, which are payable
on a quarterly basis in an amount of $87,5000 for each payment, each year during the Initial Term. 

 4.2 Timing of
Payments. The amounts payable by Sundial to Pathway set forth in Section 4.1 (the “Royalties”) will be paid by Sundial [***] and, will become due and payable within [***] after each respective Royalty Due Date and
will be calculated based on the Gross Revenue or the Net Revenue, as applicable, in the twelve (12) month period immediately preceding the applicable Royalty Due Date. 

4.3 Payment Method. Any Royalties due to Pathway under this Agreement will be paid in Canadian dollars, by wire transfer
in immediately available funds to an account designated by Pathway, or in the case of the Warrants, issued and registered in Pro Rata Portion in the names of each of the Vendors. Any monetary payments or portions thereof due hereunder which are not
paid on the date such payments are due under this Agreement will bear simple interest at a rate equal to the lesser of the prime rate as published in The Globe and Mail, on the first day of each Royalty Due Date in which such payments are
overdue, or the maximum rate permitted by law, whichever is lower, calculated on the number of days such payment is delinquent. 
 4.4
Taxes. Sundial may deduct from any amounts it is required to pay to Pathway pursuant to this Agreement an amount equal to that withheld for or due on account of any taxes (other than taxes imposed on or measured by net income) or similar
governmental charge imposed by a jurisdiction based on such payments to Pathway (“Withholding Taxes”). Sundial will provide Pathway a certificate evidencing payment of any Withholding Taxes hereunder within [***] of such payment (or
when available from the applicable foreign tax authority). 
 4.5 Reports; Records Retention; Audit. 

 

	 	(a)	 Sales Reports. Within [***] after each respective Royalty Due Date, Sundial will furnish to Pathway a
written report showing in reasonably specific detail, the Gross Revenues and Net Revenues earned during the applicable calendar year on Royalty Activities, including calculation of the royalties which will have accrued based upon such Gross Revenues
and Net Revenues, and the withholding taxes, if any, required by law to be deducted with respect to such Gross Revenues and Net Revenues. 

  

	 	(b)	 Record Retention. Sundial will maintain (and will require that its sublicensees will maintain) complete
and accurate books, records and accounts that fairly reflect Gross Revenues and Net Revenues with respect to the Royalty Activities, in each case in sufficient detail to confirm the accuracy of any payments required hereunder, which books, records
and accounts will be retained by Sundial until the later of (i) three (3) years after the end of the period to which such books, records and accounts pertain, and (ii) the expiration of the applicable tax statute of limitations (or any
extensions thereof), or for such longer period as may be required by Applicable Law. 

  
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	 	(c)	 Audit. Pathway will have the right to have an independent certified public accounting firm of nationally
recognized standing, reasonably acceptable to Pathway, have access during normal business hours, and upon reasonable prior written notice, to Sundial’s records as may be reasonably necessary to verify the accuracy of Gross Revenues and Net
Revenues for any Calendar Quarter ending not more than [***] prior to the date of such request; provided, however, that Pathway will not have the right to conduct more than one such audit in any calendar year except as provided below or more
than one such audit covering any given time period. Pathway will bear the cost of such audit unless the audit reveals an underpayment to Pathway of more than [***]% for the audited period, in which case Sundial will bear the cost of the audit.

 4.6 Payment of Additional Amounts. If, based on the results of such audit, additional payments are owed by
Sundial under this Agreement; Sundial will make such additional payments, with interest as set forth in Section 4.3, within [***] after the date on which such accounting firm’s written report is delivered to such Party. 

 

	5.	 PROSECUTION AND ENFORCEMENT 

5.1 Prosecution of Pathway IP Pathway will be responsible for the filing, prosecution, and maintenance of the Pathway IP,
including all fees and costs relating thereto. Pathway will diligently prosecute and maintain the Pathway IP and will not abandon any application for Pathway IP (or allow such Pathway IP to become abandoned or deemed abandoned) before consulting
with Sundial and offering to assign such Pathway IP to Sundial as provided below in this Section 5.1. Pathway will notify Sundial periodically of the status of each pending application for Pathway IP, including any publicly-available details
and information that is not subject to solicitor-client privilege, agent-client privilege, or other rights that protect the information from production in a court action, such as office actions, any notices of allowance, and payments concerning such
Pathway IP. At least two months in advance of any applicable deadlines, Pathway and Sundial will discuss and agree on the jurisdictions in which to file Paris Convention equivalents, or Patent Cooperation Treaty national or regional phase entries,
of the Pathway Patents or of any Future IP that is a Patent. With respect to any Patents included in the Pathways IP that is undergoing prosecution, Sundial may provide Pathway with comments on the prosecution of such Patents and Pathway will,
acting reasonably, consider such comments when prosecuting such Patents. Any differences of opinion with respect to management and prosecution of the applications or registrations of Pathway IP between Pathway and Sundial with respect to any
prosecution matters will be discussed and resolved to their mutual satisfaction. If Pathway elects to irrevocably abandon, or not to file foreign counterparts of, any Patent, plant breeder’s right, or any similar Intellectual Property Right
included in the Pathway IP (the “Abandoned Right”), Pathway will notify Sundial, and, at Sundial’s request and for no additional consideration, assign to Sundial all of Pathway’s rights, title, and interest in and to such
Abandoned Right, or the right to file foreign counterparts of such Abandoned Right, and thereafter Sundial will have the right to continue prosecution, or file foreign counterparts, of such Abandoned Right for Sundial’s sole benefit and at
Sundial’s sole expense. For greater certainty, no Royalties are payable with respect to any Products for which an Abandoned Right owned by Sundial is the sole Intellectual Property asset protecting the Product. 

  
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 5.2 Enforcement of Pathway IP. Pathway will promptly notify Sundial if Pathway
becomes aware of any known or suspected infringement of any Pathway IP or Sundial Improvements. Such notice will include the identity of the party or parties known or suspected to have infringed the Pathway IP or Sundial Improvements and any
available information that is relevant to such infringement. Pathway will have sole control over enforcement and defense of the Pathway IP against third-party infringers. If Pathway shall decide not to prosecute or defend any action, suit or
proceeding it shall so advise Sundial who shall be entitled but shall not be bound to prosecute or defend the action, suit or proceeding, provided that Sundial shall not settle any such action without Pathway’s approval of the settlement terms.

  

	6.	 CONFIDENTIALITY 

6.1 “Confidential Information” means: (a) all information of each Party relating to Intellectual Property owned by
that Party and disclosed by that Party (“Disclosing Party”) to the other Party (“Receiving Party”), including any trade secrets, know-how, financial, corporate, marketing,
product, research, technical, proprietary, legal, or personnel information or other information in any form or media, relating to the Disclosing Party, its affiliates, associates, or other related entities that is specifically identified as
confidential by the Disclosing Party or the nature of which is such that it would generally be considered confidential in the industry in which the Disclosing Party operates; and (b) the existence and terms and conditions of this Agreement.
Confidential Information does not include information that: (a) was already lawfully known to the Receiving Party at the time of disclosure by the Disclosing Party; (b) is disclosed to the Receiving Party by a third party who had the right
to make such disclosure without any confidentiality restrictions; (c) is, or through no fault of the Receiving Party has become, generally available to the public; or (d) is independently developed by the Receiving Party without access to,
or use of, the Disclosing Party’s Confidential Information. 
 6.2 Protection of Confidential Information. Receiving Party
will use Confidential Information of Disclosing Party solely in furtherance of Receiving Party’s internal business purposes and to develop, use, market, and sell the Products consistent with the licenses granted under this Agreement
(“Permitted Use”). Receiving Party will not disclose the Confidential Information of Disclosing Party except to Receiving Party’s employees and contractors who have signed a written agreement containing confidentiality
obligations at least as restrictive as those contained herein and need to know such Confidential Information to either exercise the rights granted to Receiving Party under this Agreement or for the Permitted Use. Receiving Party will protect the
Confidential Information of Disclosing Party from unauthorized use, access, or disclosure in the same manner as Receiving Party protects its own confidential or proprietary information of a similar nature and with no less than reasonable care. 

6.3 Exceptions. Receiving Party will be allowed to disclose the Confidential Information of Disclosing Party to the extent that
such disclosure is: (a) specifically approved in writing by Disclosing Party; (b) necessary in the course of legal proceedings for Receiving Party to defend itself or to enforce its rights under this Agreement; or (c) required by law
or by the order of a court or similar judicial or administrative body, provided that Receiving Party notifies Disclosing Party of such required disclosure promptly and in writing and cooperates with Disclosing Party, at Disclosing Party’s
reasonable request and expense, in any lawful action to contest or limit the scope of such required disclosure. Each Party will be allowed to disclose the 

  
 7 

 
terms and conditions of this Agreement to: (a) its attorneys, accountants, and other professional advisors under a duty of confidentiality; and (b) others in connection with a proposed
merger, financing, or sale of such Party’s business (provided that any third party to whom the terms of this Agreement are to be disclosed signs a confidentiality agreement reasonably satisfactory to the other Party to this Agreement). 

6.4 Press Releases. Press releases or other similar public communication by either Party relating to this Agreement will be approved in
advance by the other Party, which approval will not be unreasonably withheld or delayed. The Parties agree in advance that no financial terms related to this transaction will be disclosed in any press release related to or describing the
transaction. Notwithstanding the foregoing, communications required by Applicable Law, and disclosures of information for which consent has previously been obtained will not require advance approval, but will be provided to the other Party as soon
as practicable after the release or communication thereof. 
  

	7.	 REPRESENTATIONS AND WARRANTIES 

7.1 Mutual Representations and Warranties. Each Party represents and warrants that it has full right, power, and authority to
enter into this Agreement and to perform its obligations and duties under this Agreement, and that the performance of such obligations and duties does not and will not conflict with or result in a breach of any other agreement of such Party or any
judgment, order, or decree by which such Party is bound. 
 7.2 Representations and Warranties by Pathway. Pathway represents and
warrants that: 
  

	 	(a)	 it has full and exclusive right, power, and authority to grant the licenses to the Pathway IP granted under
this Agreement; 

  

	 	(b)	 all of the Pathway IP is free and clear of all security interests, options, claims, liens, licenses, and
encumbrances of any nature; 

  

	 	(c)	 it has not granted, and will not grant, any security interests, options, claims, liens, licenses, or
encumbrances of any nature with respect to any Pathway IP which would conflict with, or could interfere with Sundial’s ability to exercise the rights to the Pathway IP that are granted to Sundial under this Agreement; 

 

	 	(d)	 all Pathway Patents that have issued as of the Effective Date are valid and enforceable as of such date;

  

	 	(e)	 to its knowledge, Commercialization of the Pathway IP does not infringe, conflict with or violate any
Intellectual Property Right of any third party as of the Effective Date; 

  

	 	(f)	 all maintenance fees, annuity payments, registration payments, and similar payments relating to the Pathway IP
have been made, and during the term of this Agreement will be made, in a timely manner, and it has diligently prosecuted all Pathway Patents; 

  
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	 	(g)	 no proceeding is pending or threatened, nor has any claim been made, which challenges or challenged the
validity or enforceability of any Pathway IP; 

  

	 	(h)	 all Developers have waived their moral rights in writing in and to all of the Pathway IP; and

  

	 	(i)	 it has notified Sundial of all pending deadlines, actions, and other actions that may need to be performed in
the three (3) months after the Effective Date to avoid prejudicing Sundial’s rights, in connection with the prosecution, registration, or maintenance of the Pathway IP. 

 

	8.	 TERM AND TERMINATION 

8.1 Term. This Agreement will take effect on the Effective Date and remain in effect for an initial term of ten (10) years
(the “Initial Term”). Thereafter, this Agreement will automatically renew for consecutive one (1) year terms (each a “Renewal Term”) unless Sundial notifies Pathway at least thirty (30) days prior to the
end of the Initial Term or the applicable Renewal Term of its intention not to renew. “Term” means the Initial Term and any Renewal Term. 

8.2 Termination. This Agreement may be terminated: 
  

	 	(a)	 by mutual agreement of the parties; 

 

	 	(b)	 upon expiry of a sixty (60) day period if a party fails to cure a breach of a term or condition of this
Agreement within sixty (60) days following receipt of written notice from the other party; 

  

	 	(c)	 immediately upon written notice to a party following breach of a term or condition of this Agreement if the
breach cannot be cured; and 

  

	 	(d)	 immediately upon written notice to a party if the other party becomes the subject of any petition in bankruptcy
or any proceeding relating to insolvency, receivership, liquidation or assignment for the benefit of its creditors. 

8.3 Effects of Termination. Upon termination of this Agreement: 

 

	 	(a)	 Sundial shall immediately cease Use of any Pathway IP, provided that any remaining Products available for sale,
or for which cultivation of plants intended for processing (or any downstream steps) has already begun, may be sold by Sundial and the resulting royalties paid to Pathway; 

 

	 	(b)	 Sundial shall make all payments of royalties accrued to Pathway and the Vendors at the time of termination
within thirty (30) days of termination; 

  
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	 	(c)	 every thirty (30) days following termination until all sales under subsection 8.3(a) are complete, Sundial
shall make payments to Pathway for sales under subsection 8.3(a) based on the terms of paragraphs 4.1(a) and 4.1(d), and if the sales trigger compensation milestones under sections 4.1(b) or 4.1(c), make payments under 4.1(b) or issue Warrants under
subsection 4.1(c), and with each monthly payment or delivery of Warrants shall provide to Pathway a summary of remaining stocks of Products; 

  

	 	(d)	 Sundial shall provide written confirmation to Pathway that all licenses or other arrangements with third
parties that allow Use of the Pathway IP by third parties have been terminated, provided that Pathway may in its discretion consent to extension of such Use and corresponding payments or issuing of Warrants under paragraphs 4.1(a), 4.1(b), 4.1(c) or
4.1(d); and 

  

	 	(e)	 Pathway and Sundial shall negotiate commercially reasonable licensing terms, including royalty payments, to
allow Sundial to continue using Sundial Improvements that requires the use of any Pathway IP that is administratively maintained as registered Intellectual Property Rights, or maintained as a trade secret, at the time of termination, such terms to
be no less favorable than paragraphs 4.1(a), 4.1(b), 4.1(c) or 4.1(d) of this Agreement with respect to compensation of Pathway. 

8.4 Survival. Upon termination or expiration of this Agreement for any reason other than default by Sundial or an election by Sundial
not to renew for a Renewal Term, Sections 1 (Definitions), 2.1 (Intellectual Property License), 2.2 (Improvements), 2.3 (CannSelect Product License), 6 (Confidentiality), 7 (Representations and Warranties), 8.3 (Effects of Termination), 8.4
(Survival), and 10 (General) will survive. Upon termination of this Agreement by Pathway for a default by Sundial, or expiration following an election by Sundial not to renew for a Renewal Term, Sections 1 (Definitions), 6 (Confidentiality), 7
(Representations and Warranties), 8.4 (Survival), and 10 (General) will survive. 
 8.5 License Rights After Bankruptcy.
Notwithstanding any other rights granted to Sundial under this Agreement, all licenses and related rights granted by Licensor under or pursuant to this Agreement are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the
United States Bankruptcy Code (11 U.S.C. §365(n)) and any amendment or successor provision(s) thereto or its equivalent under any Canadian (including the Bankruptcy and Insolvency Act and the Companies’ Creditor Arrangement Act) or other
bankruptcy or receivership laws (the “Bankruptcy Laws”), licenses of rights to “intellectual property” as such term is defined under the Bankruptcy Laws. The Parties agree that Sundial, as licensees of such rights and
licenses, shall retain and may fully exercise all of their rights under the Bankruptcy Laws or any similar rights provided under any other applicable laws and that Sundial shall have the right to retain and enforce their rights under this Agreement
and, for greater certainty, no inaction on the part of Sundial shall be deemed to be an election of a particular remedy thereunder. 

  
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	9.	 LIMITATION OF LIABILITY 

9.1 Exclusion of Damages. OTHER THAN FOR BREACH OF CONFIDENTIALITY, MISAPPROPRIATION OF THE OTHER PARTY’S INTELLECTUAL
PROPERTY RIGHTS, OR INDEMNIFICATION OBLIGATIONS UNDER THIS AGREEMENT, IN NO EVENT WILL EITHER PARTY BE LIABLE FOR SPECIAL, INCIDENTAL, INDIRECT, OR CONSEQUENTIAL LOSS OR DAMAGE, LOST BUSINESS REVENUE, LOSS OF PROFITS, LOSS OF DATA, LOSS OF COVER,
DAMAGES FOR DELAY, PUNITIVE OR EXEMPLARY DAMAGES, OR FAILURE TO REALIZE EXPECTED PROFITS OR SAVINGS, EVEN IF THE APPLICABLE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF ANY SUCH LOSSES OR DAMAGES. 

 

	10.	 GENERAL 

10.1 Notice. Any notice, approval, authorization, consent, or other communication required or permitted to be delivered to either
Party under this Agreement must be in writing and will be deemed properly delivered and given on receipt (or when delivery is refused) if delivered (a) by hand, or (b) by courier or express delivery service, or (c) by email (with a
copy sent by postage prepaid first-class mail) to the email address set forth beneath the name of such Party below (or to such other email address as such Party may have specified in a written notice to the other Party): 

 

			
	 If to the Vendors or Pathway, to:
 Pathway Rx
Inc.
 16 Sandstone Road South
 Lethbridge, AB, T1K 7X8

Attention: Igor Kovalchuk
 Email: [***]
	  	 If to Sundial, to:
 Sundial Growers Inc.

Site 4, Box 17, RR1
 Airdrie, AB T4B 2A3

Attention: [***]
 Email: [***]

		
	 with a copy to:
 Borden Ladner Gervais LLP

520 3 Ave SW #1900
 Calgary, AB T2P 0R3
	  	 with a copy to:
 McCarthy Tetrault LLP

4000, 421 7th Ave SW
 Calgary, AB T2P 4K9

		
	 Attention: [***]
 Email: [***]
	  	 Attention: [***]
 Email: [***]

 10.2 Governing Law. This Agreement shall be governed by and construed according to the laws of
the Province of Alberta and the federal laws of Canada applicable therein, and the parties hereto irrevocably submit to the jurisdiction of the courts of the Province of Alberta in respect of any dispute arising from this Agreement. 

10.3 Assignment. Neither Party may assign or transfer, by operation of law or otherwise, any of its rights under this Agreement
to any third party without the other Party’s prior written consent, except to the assigning Party’s successor in connection with a merger, sale of assets, sale of stock, or other transfer of all or substantially all of the assigning
Party’s business and assets. 

  
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 10.4 Remedies. The rights and remedies of the parties will be cumulative (and
not alternative). If any legal action is brought to enforce this Agreement, the prevailing Party will be entitled to receive its legal fees, court costs, and other collection expenses, in addition to any other relief it may receive. 

10.5 Waiver. All waivers must be in writing and signed by an authorized representative of the Party to be charged. Any waiver or
failure to enforce any provision of this Agreement on one occasion will not be deemed a waiver of any other provision or of such provision on any other occasion. 

10.6 Severability. If any provision of this Agreement is unenforceable, such provision will be changed and interpreted to
accomplish the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue in full force and effect. 

10.7 Construction. The section headings in this Agreement are for convenience of reference only, will not be deemed to be a part
of this Agreement, and will not be referred to in connection with the construction or interpretation of this Agreement. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party will not be applied in the
construction or interpretation of this Agreement. As used in this Agreement, the words “include” and “including,” and variations thereof, will not be deemed to be terms of limitation, but rather will be deemed to be followed by
the words “without limitation.” The word “or” will be interpreted inclusively to mean “and/or”. All references in this Agreement to “Sections” are intended to refer to sections of this Agreement. This
Agreement may be executed in several counterparts, each of which will constitute an original and which together will one and the same agreement. 

10.8 Amendments and Waiver. No amendment to this Agreement shall be valid or binding unless set forth in writing and duly
executed by the parties. No waiver of any breach of any provision of this Agreement shall be effective or binding unless made in writing and signed by the Party purporting to give the same and, unless otherwise provided, shall be limited to the
specific breach waived. 
 10.9 Counterparts and Delivery. This Agreement may be executed in two (2) or more counterparts, each
of which will be deemed an original, but all of which together will constitute one and the same instrument. Delivery of an executed signature page to this Agreement by any Party by electronic transmission will be as effective as delivery of a
manually executed copy of this Agreement by such Party. 
 10.10 Further Assurance. Both parties will duly execute and deliver, or
cause to be duly executed and delivered, such further instruments and do and cause to be done such further acts and things, including the filing of such assignments, agreements, documents and instruments, as may be necessary to carry out the
provisions and purposes of this Agreement. 
 [Remainder of page intentionally left blank] 

  
 12 

 IN WITNESS WHEREOF, the parties have executed this License Agreement as of the date
and year first written. 
  

					
	SUNDIAL GROWERS INC.	  		  	PATHWAY RX INC.
			
	 /s/ [***]

Name: [***]
 Title: [***]
	  		  	 /s/ [***]

Name: [***]
 Title: [***]

 Each of the Vendors has been made a signatory to this Agreement solely for the purpose of subsection 4.l(c) of this Agreement
and those portions of the Agreement applicable thereto. 
  

					
	 SIGNED, SEALED, DELIVERED in the
 presence
of:
	  	 )

)
 )

)
 )

)
 )

)
 )

)
 )

)
 )
	  	
	 /s/ [***]

Witness
	  	 /s/ [***]

[***]

	 /s/ [***]

Witness
	  	 /s/ [***]

[***]

	 /s/ [***]

Witness
	  	 /s/ [***]

[***]

  
 13EX-10.8

 Exhibit 10.8 
  

	[***]	 Certain information in this document, marked by brackets, has been excluded pursuant to Item 601(b)(10)(iv)
of Regulation S-K under the Securities Act of 1933, as amended, because it is both (i) not material and (ii) would likely cause competitive harm to the registrant if publicly disclosed.

 Terms and Conditions of 

PROFESSIONAL SERVICES AGREEMENT 
 THIS
PROFESSIONAL SERVICES AGREEMENT made as of the 8th day of July, 2019 (the “Agreement”) between AppColony Inc., a corporation amalgamated pursuant to the laws of Alberta (“AppColony”) and Sundial Growers
Inc, a corporation amalgamated pursuant to the laws of Alberta (“the Client”). 
 WHEREAS the Client has engaged AppColony and
AppColony has accepted such engagement to provide certain information technology project and development services for and on behalf of the Client in accordance with the terms of this Agreement; 

NOW, THEREFORE, in consideration of the mutual premises and covenants of the parties hereto and such other good and valuable considerations, the
receipt of which is hereby acknowledged, the parties hereby agree as follows: 
  

	1.	 Term & Rate 

 

	 	1.1.	 Subject to the provisions of Article 8, this Agreement shall commence on July 8, 2019 and expire on
July 8, 2021 (the “Initial Term”). 

  

	 	1.2.	 The parties may agree in writing to extend the Term of this Agreement for additional consecutive two
(2) year terms (“Extended Terms”). As used throughout this Agreement, the word “Term” shall include the Initial Term and any and all Extended Term(s) 

 

	2.	 Services 

  

	 	2.1.	 The services to be performed and the resources assigned by AppColony to perform such services as may be
required by the Client from time to time shall be set forth in detail in a statement of work in substantially the same format as Schedule “A”, as may be amended from time to time, attached hereto (the “Statement of Work”).
Each Statement of Work agreed to by the parties shall contain a complete description of the services to be performed by AppColony, including all deliverables to be provided, the resources assigned to perform such services, and the amounts charged
for such services (the “Contract Price”) and shall be signed by both parties (collectively, the “Services”). Unless otherwise agreed to, each Statement of Work agreed to by the parties shall be signed by both
parties prior to the commencement of the Services. Each Statement of Work shall be deemed to form part of this Agreement and shall represent valid amendments to this Agreement. 

	 	2.2.	 Any changes requested by the Client to the Services in the Statement of Work shall be described in a
change order in substantially the same format as Schedule “C”, as may be amended from time to time by AppColony, attached hereto (the “Change Order”). All Change Orders agreed to hereunder shall be signed by both parties
and shall be deemed valid amendments to the Statement of Work referenced in such Change Order. 

  

	 	2.3.	 All Services provided under this Agreement by AppColony will be provided by AppColony employees. No sub-contractors will be used by AppColony without the express written consent of the Client. 

  

	3.	 Rate 

  

	 	3.1.	 For all Services provided under this Agreement, AppColony shall charge the Client the Rates described in
Schedule A. 

  

	4.	 Reporting 

  

	 	4.1.	 AppColony shall be required to keep the Client informed of the results and progress of the Services
every two weeks unless otherwise set out in a Statement of Work. 

  

	5.	 Compensation, Taxes and Expenses 

 

	 	5.1.	 In consideration of the Services performed pursuant to a Statement of Work, the Client agrees to pay
AppColony the Contract Price within [***] of the date of its receipt of invoice therefore. 

  

	 	5.2.	 Where AppColony is a registrant for GST and/or HST purposes, or for any other provincial sales tax
purposes and is thereby required to collect such taxes on fees for Services to the Client, AppColony shall disclose on all invoices issued to the Client, all documentary evidence as required by the applicable federal and provincial legislation to
enable the Client to recover such taxes, including its registration numbers. 

  

	 	5.3.	 The Client hereby acknowledges and agrees that subject to the terms set out in a Statement of Work, to
pay to AppColony reasonable travel and other business expenses incurred in providing the Services thereunder. Any expenses shall be paid by AppColony and thereafter submitted to the Client for reimbursement together with all original paid receipts
in accordance with the procedure for invoicing and payment set forth in section 4.1. 

  

	 	5.4.	 AppColony acknowledges and agrees that it is solely responsible to pay all wages, including, without
limitation, salaries, benefits and any other considerations due to, each to its employees and/or subcontractors used to perform any of the Services. 

  

	6.	 Relationships of the Parties 

 

	 	6.1.	 In furnishing the Services hereunder, AppColony will act as an independent contractor and not as an
employee or agent of the Client. 

	 	6.2.	 AppColony shall independently perform the Services according to accepted industry standards.

  

	 	6.3.	 No person engaged by AppColony to perform the Services will be considered to be an employee of the
Client for any purpose whatsoever. All obligations to such persons incidental to an employer/employee relationship or such contractual relationship are the sole responsibility of AppColony. 

 

	 	6.4.	 During the Term and for a period of twelve (12) calendar months thereafter, neither party will
solicit, hire or take away, or cause to be solicited, hired or taken away, any employee of the other party; provided that neither party shall be deemed in default of this obligation if employment is obtained by either party’s employees through
such employee responding to a standard advertisement for hire. 

  

	7.	 Ownership of Reports and Data 

 

	 	7.1.	 Any and all reports, manuscripts, data, designs, summaries and any other work products, proprietary and
intellectual property, including any background data used to support the Services performed pursuant to this Agreement, whether completed or not, that have been produced, compiled, created, written or accumulated by AppColony, its employees and/or
subcontractors, or on its or their behalf, in the performance of the Services (collectively, the “Deliverables”) shall be the property of the Client and shall be turned over to the Client promptly at the Client’s request or
within 14 days after the expiration or early termination of this Agreement, whichever is first to occur. AppColony agrees that upon the Clients request, AppColony will sign or cause to be signed any conveyances that may be required to effect the
transfer of title to the Client of any Deliverables referred to herein. The terms of this Article 6 shall survive the termination or expiration of this Agreement. 

 

	8.	 Warranties and Indemnity 

 

	 	8.1.	 AppColony and the Client represent and warrant that each party will have at all times full power to
enter into and fully perform the Services under this Agreement and the unrestricted right and authority to make the assignments and grant the rights to the other party required by this Agreement and that its performance of the Services will not in
anyway infringe upon or violate any rights of any third party, including without limitation, any intellectual property rights, including without limitation, rights of patent, trade secret, trade-mark, copyright or industrial design. AppColony and
the Client represent that their execution of this Agreement and the compliance by both parties with provisions hereof will not conflict or result in a breach of or default under any other agreement to which AppColony and the Client are a party or by
which they are bound. 

  

	 	8.2.	 AppColony represents and warrants that it has the skills expertise, experience and ability in the fields
to which the Services relate and related disciplines necessary to perform the Services and that all Services will be performed in a competent, diligent, professional and careful manner and will meet or exceed the standards for such Services which
would be generally accepted in AppColony’s industry. 

	 	8.3.	 AppColony warrants that the Deliverables and/or Services provided pursuant to each Statement of Work
will substantially conform to the specifications agreed to between the Client and AppColony in such Statement of Work. 

  

	 	8.4.	 AppColony (in this context, the “Indemnifying Party”) will indemnify and hold harmless
the Client, its Affiliates and their respective directors, officers, employees, representatives and agents (collectively, in this context, the “Indemnified Parties”), from and against any and all Claims brought or made against, or
injured by, the Indemnified Parties, or any one of them, arising out of or in connection with (a) any negligent act or omission or wrongful conduct by AppColony, its Affiliates or their respective directors, officers, employees, representatives
or agents (collectively, in this Part, the “AppColony Entities”), (b) any contravention by AppColony of any applicable law, (c) any breach by any of the AppColony Entities of the obligations hereunder with respect to the
Confidential Information or Intellectual Property Rights of the Client, or (d) any Claim that AppColony’s technology infringes on any third party’s intellectual property rights. 

 

	 	8.5.	 The Client (in this context, the “Indemnifying Party”) will indemnify and hold harmless
AppColony, its Affiliates and their respective directors, officers, employees, representatives and agents (collectively, in this context, the “Indemnified Parties”), from and against any and all Claims brought or made against, or
incurred by, the Indemnified Parties, or any one of them, arising out of or in connection with (a) any grossly negligent act or commission or wrongful conduct by the Client, its Affiliates or their respective directors, officers, employees
representatives or agents (collectively, in this Part, the “Clients Entitities”), (b) any contravention by the Client of any applicable law, (c) any breach by the Client of the obligations hereunder with respect to the
confidential information or intellectual property rights of AppColony, or (d) any claim that the Client’s brand elements or technology infringe on any third party’s intellectual property rights. 

 

	 	8.6.	 Each Party acknowledges that the Indemnifying Party will be given complete authority for the defense or
settlement of Claims indemnified hereunder at its own expense, on the understanding that, in all events, the Indemnified Parties will have the right (at its own expense) to participate in such defense or compromise through counsel of its choosing.

  

	 	8.6.1.	 the Indemnified Party notifying the Indemnifying Party as soon as reasonably practicable after receiving
notice of a Claim but in any event within ten (10) days of such notice; 

  

	 	8.6.2.	 the Indemnified Party providing such information and assistance as reasonably requested by the
Indemnifying Party; and 

	 	8.6.3.	 the Indemnified Party not compromising or settling the Claim without the Indemnifying Party’s prior
written consent, such consent not to be unreasonably withheld, conditioned or delayed. 

  

	9.	 Termination/Default 

 

	 	9.1.	 Either party may terminate this Agreement immediately if the other party is unable to pay its debts when
they become due, makes an assignment for the benefit of creditors, files any petition or has any petition filed against it under the bankruptcy laws of any jurisdiction, has or suffers a receiver or trustee to be appointed for its business or
property, or is adjudicated a bankrupt or insolvent. 

  

	 	9.2.	 Upon termination of this Agreement, AppColony shall discontinue the performance of the Services
hereunder and shall deliver to the Client all Deliverables as completed as of the date of termination and further shall return all of the Client’s confidential information (as described in Article 9) furnished to AppColony under this Agreement.

  

	10.	 Confidentiality 

 

	 	10.1.	 The parties hereby agree to treat all information it may receive from the other party during the Term
which is identified by the other party as confidential information in accordance with the provisions of the AppColony Inc. Mutual Confidentiality Agreement attached hereto as Schedule “B”. AppColony further agrees that it shall require
each of its employees and subcontractors who provide all or any portion of the Services to treat the Client’s information in accordance with this Agreement and with the terms set out in Schedule “B” attached hereto.

  

	11.	 Notice 

  

	 	11.1.	 Any notice, request, demand, consent or other communication provide or permitted hereunder shall be in
writing and given by personal delivery (against receipt), or sent by registered mail (against receipt) postage prepaid, or transmitted by facsimile, addressed to the other party for which it is intended at its address below: 

 

			
		  	To AppColony:
		  	 Suite 500, 1019 Wharf Street

		  	 Victoria, British Columbia V8W 2Y9

		  	 Attention: [***]

		  	 Facsimile: [***]

		
		  	To Sundial Growers Inc.:
		  	 Suite 200, 919 11 Ave SW

		  	 Calgary, Alberta T2R 1P3

		  	 Attention: [***]

		  	 Email: [***]

 Provided, however, that either party may change its address for purposes of receipt of any such
communication by giving ten (10) business days prior written notice of such change to the other party in the manner prescribed above. Any notice so given shall be deemed to have been received at the date on which it was delivered if delivered
in person, or, if transmitted by facsimile, on the date it was transmitted or if sent by registered mail on the fifth (5th) business day thereafter. 

 

	12.	 Applicable Law 

 

	 	12.1.	 This Agreement shall be governed by and construed in accordance with the laws of the Province of Alberta
and the federal laws of Canada applicable thereto. The parties agree that they shall submit any matter in dispute, including any dispute with respect of jurisdiction or the applicability of the provisions of this Section 11.1, to a court of
competent jurisdiction located in Calgary, Alberta, Canada and each of the parties irrevocably attorns and consents to the exclusive jurisdiction of such courts. 

 

	13.	 Severability 

  

	 	13.1.	 If any provision hereof is determined to be void or unenforceable in whole or in part, the remaining
provisions shall remain in effect. 

  

	14.	 Non-Waiver 

 

	 	14.1.	 No waiver of the terms and conditions of this Agreement, or the failure of either party to strictly
enforce any such term or condition on one or more occasions, shall be construed as a waiver of the same or of any other terms or conditions of this Agreement on any other occasion. 

 

	15.	 Survival 

  

	 	15.1.	 The provisions of this Section and Sections 5.4, 6.1, Article 7 and Sections 9.1 (inclusive of Schedule
“B”) shall survive the expiry or earlier termination of this Agreement. 

  

	16.	 Force Majeure 

 

	 	16.1.	 Neither party shall be responsible for interruptions, errors, delays or defects caused by an act of God,
fortuitous event, war, insurrection, riot, strike, walkout, lockout or other labour unrest affecting either party or their suppliers, storm, fire, flood, explosion, delays in producing supplies, shortages of suitable labour, equipment, or materials,
power shortages or interruptions or any event beyond the reasonable control of either party. A lack of funds shall not be deemed an event of force majeure. 

	 	16.2.	 Entire Agreement 

 

	 	16.2.1.	 This Agreement, including Schedules “A”, “B” and “C” attached hereto or as
attached from time to time in accordance with Section 1.1., inclusive, contains the entire agreement between the parties with relation to the subject matter hereof and shall supersede any and all previous agreements whether written or oral.
This Agreement shall not be amended or modified, except in writing, duly executed by the parties hereto. 

  

	 	16.3.	 Counter Part 

  

	 	16.3.1.	 This Agreement may be executed in counterparts and all counterparts together shall constitute one and
the same agreement. Delivery by a party of an executed copy of this Agreement by electronic means will be effective delivery, and the parties shall adopt any signatures received electronically as original signatures of the parties

 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed on the day and year first written above. 

 

			
	APPCOLONY INC.
		
	Per:	 	 /s/ [***]

	Name:	 	[***]
	Title:	 	[***]
	
	SUNDIAL GROWERS INC.
		
	Per:	 	 /s/ [***]

	Name:	 	[***]
	Title:	 	[***]

 SCHEDULE “A” 

Statement of Work to the Professional Services Agreement effective as of July 8, 2019 (the “Agreement”) between AppColony
Inc. and Sundial Growers Inc. 

 AppColony 

Statement of Work: Branding, Marketing, Digital and Technology Services 

Statement of Work 
 This Statement of Work is dated as of
July 8, 2019. The (“Statement of Work” or “SOW”) is subject to the terms and conditions contained in the Professional Services Agreement effective July 4, 2019 (the
“Agreement”) between Sundial Growers Inc. (the “Client”) and AppColony, Inc. (“AppColony”). All capitalized terms used in this SOW but not defined herein shall have the meanings ascribed to such terms in the
Agreement. 
 Overview 
 The primary objective of the
engagement is to provide ongoing graphic design, branding, marketing, branded content and web and mobile development across several primary work streams and initiatives, listed herein. AppColony will be responsible for providing appropriately
skilled and experienced Resource(s) (described below) to deliver the Services, including any identified deliverables as described herein to the Client. 

As an integrated part of the work streams and initiatives, AppColony will utilize its best practices and industry leading practices to provide Services and/or
deliverables in each phase of the project. 
 AppColony Resource(s) 

AppColony shall appoint the appropriate individuals as the resource(s) to perform the Services described in this SOW. In addition to the individuals named
below, AppColony reserves the right to add or replace resources as required. 
 [***] – Chief Operating Officer 

[***] – Senior Project Manager  
 [***]
– Project Coordinator  
 [***] – Creative Director  

[***] – Art Director  
 [***] – Art
Director  
 [***] – Senior Designer  

[***] – Designer  
 [***] –
Designer  
 [***] – Senior Web Developer  

[***] – Web Developer  
 [***] –
Web Developer  
 [***] – SEO & Analytics  

[***] – Content Director  
 [***] –
Copywriter  
 [***] – Copywriter  

[***] – Copywriter  
 [***] –
Quality Assurance 

 AppColony may from time to time contract additional resources for specific projects, tasks and/or
competencies. 
 Client Resource(s) 
 The Client shall
appoint the appropriate individuals as the resources and contacts for AppColony to work with to provide the Services in this SOW.  
 [***] –
Chief Experience Officer  
 [***] – VP, Commercial  

[***] – Chief Information Officer  
 [***]
– Marketing Manager  
 [***] – Product Manager  

[***] – Product Manager  
 [***] –
Event Coordinator  
 [***] – Brand & Product Manager  

[***] – Brand Manager  
 [***] –
Brand Manager  
 [***] – Product Coordinator  

[***] – Trade Marketing Coordinator 

 Scope & Approach 

The scope of Services will include the following. The Services described below are ongoing: 

 

			
	 	 
	 Branding & Collateral

 
	  	 
	
Advancing and maintaining Sundial’s brands through the development of core visual presentation, content strategy, packaging design and marketing
collateral.
  

	
Work Stream
  
	  	 Description

 

	Accessories	  	 Design, processes and peripheral work surrounding the development of cannabis
accessories such as trays, grinders, lockboxes, storage containers, batteries, pre-roll holders and lighters.
  

Design the packaging and promotional material associated with the accessories.

	 	 
	Event Materials	  	 Design and production of materials to used as collateral at trade shows and events
including:
  

–   Brochures

–   Posters

–   Giveaways

–   Displays

	 	 
	Identity	  	Designing and refining Sundial’s brands including brand elements, logos, taglines, brand strategies
and brand guidelines.
	 	 
	Packaging	  	 Label and package design for all product types including:

 
 –   Whole Flower

–   Pre-Rolls

–   Cannabis Oil

–   Vape Cartridges

–   Topicals

	 	 
	Product Assets	  	Creation and design of marketing assets for Sundial’s products, including product descriptions, marketing copy, product photographs and product illustrations.
	 	 
	Marketing Campaigns	  	 Design and develop strategies and tactics for marketing campaigns for
Sundial’s brands.
  

–   Campaign concepts

–   Visual assets

–   Copy

–   Media strategy and approach

	 	 
	Sales Materials	  	 Design and develop assets and materials to support and enable Sundial’s
commercial team and in-store presence.
  

–   Sales materials including decks, sell sheets and sales kits

	 	 
	Point of Connection Materials	  	 Design and develop materials and assets for use
and display in-store.
  

–   Kiosks both digital and print

–   Product cards and posters

–   Shelf toppers and display cases

–   Shelf wobblers and promotional tags

–   Display Packaging

			
	 	 
	 Digital Marketing

 
	  	 
	
Designing, developing, maintaining and growing the online presence for Sundial’s brands.

 

	 Work Stream

 
	  	 Description

 

	 	 
	Social Media Management	  	Developing content strategies for the social media accounts. Monitoring the social media content to ensure consistency with overall campaign
and brand strategies.
	 	 
	Web Development	  	 Developing the front and backend applications for
Sundial’s web and mobile experiences. Including but not limited to
  

–   Sundial Cannabis website

–   Sundial corporate website

–   Top Leaf

–   BC Weed Co.

–   Palmetto

–   Sundial Naturals

–   Medical Marketplace

	 	 
	Web Design	  	 Design the user experience for Sundial’s web
and mobile experiences, including but not limited to:
  

–   Sundial Cannabis website

–   Sundial Corporate website

–   Top Leaf

–   BC Weed Co.

–   Palmetto

–   Sundial Naturals

–   Medical Marketplace

  

			
	 	 
	 Supplementary Work

 
	  	 
	
Provide graphic design resources to Sundial when needed for investor and community relations and internal communications.

 

	 Work Stream

 
	  	 Description

 

	 	 
	 Presentations

 
	  	 Design and develop slides and content for
corporate communications.
  

	 	 
	Visual Graphics	  	Design and develop graphics for display at corporate events and Sundial’s facilities.

 In addition to the described work streams, AppColony will also be responsible for administering AppColony’s resources,
relevant third party resources and managing the overall projects from AppColony’s perspective. 
 Resource Allocation and Cost 

The Contract Price for the Services will be billed to the Client on an hourly basis at the rate of $135 (Canadian funds) per hour against a total monthly
retainer of $300,000. All approved travel and other expenses incurred by AppColony will be payable by the Client. 
 Any Creative Services for which an
outside contractor is required (for example but not limited to, Product photography, specialized videography and editing, photo retouching, etc.) that pertains directly to any Client work managed by AppColony or any Client work requiring the
procurement, supervision and/or oversight by AppColony in order to ensure a successful completion of the work, will be paid directly by AppColony and will be invoiced back to the Client on a monthly basis with an added surcharge of 10% (plus GST) as
a Management fee for said Creative Services. 

 Program Management and Assumptions 

The following general assumptions have been made with regard to the Statement of Work: 

 

	 	–	 	 In the case of any major delays or risks for successful project completion that may be identified by AppColony or
the Client, there will be a procedure for an immediate escalation to project stakeholder(s). 

  

	 	–	 	 Any changes to this Statement of Work or the Services and any costs related thereto will be submitted for review
and written approval by both AppColony and the Client. 

  

	 	–	 	 Items that are not specified in this Statement of Work are considered to be out of the scope of work for
AppColony. 

  

	 	–	 	 Budget not used in any given month will be carried forward into the following month. 

 

	 	–	 	 Expenses for peripheral / related costs such as printed materials, physical installations / equipment, digital
collateral not produced by AppColony will be billed directly to the client. 

  

	 	–	 	 Once the scope of a specific task or workstream is defined by the Client, AppColony will provide the Client with
a schedule detailing the time and resources required to complete the work. 

 Requirements: 

 

	 	–	 	 Client will provide AppColony with all relevant industry information and regulations. 

 

	 	–	 	 Client will provide AppColony with all relevant product information 

 

	 	–	 	 Client will provide AppColony with access to facilities and product as required by the work streams

  

	 	–	 	 Client will provide timely sign off and approvals 

Dependencies 
  

	 	–	 	 Timelines are subject to revision based on Client competing reviews within the designated timeframes.

  

	 	–	 	 Client feedback, where required, should be given within two (2) business days. 

Signature page to follow 

 Statement of Work Signoff: 

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed on the day and year first above written. 

 

			
	APPCOLONY INC.
		
	Per:	 	 /s/ [***]

	Name:	 	[***]
	Title:	 	[***]
	
	SUNDIAL GROWERS INC.
		
	Per:	 	 /s/ [***]

	Name:	 	[***]
	Title:	 	[***]

 SCHEDULE “B” 

AppColony Inc. Mutual Confidentiality Agreement 

This Confidentiality Agreement (the “Agreement”) is entered into and is effective as of July 8, 2019 (the “Effective Date”) by and
between AppColony Inc., with offices at Suite B010, 438 11th Avenue SE, Calgary, Alberta (“AppColony”) and Sundial Growers Inc. with offices at Site 4, Box 17, RR1, Airdrie, Alberta (“Company”). For purposes of this Agreement
AppColony means AppColony Inc. and all affiliates and subsidiaries of AppColony Inc. 
 1.    Definition Of
Confidential Information. For their mutual benefit, the parties plan to discuss certain confidential information in connection with AppColony’s software development initiatives and Company’s services and products (the
“Project”). The parties agree that the terms and conditions of this Agreement, the nature of their business relationship, including, if applicable, the fact that one party provides or may provide goods or services to the other, and the
parties’ discussions concerning the Project will be considered confidential information covered by this Agreement (“Confidential Information”). In addition, any other nonpublic information which one party (“Discloser”)
discloses to the other party (“Recipient”) in the course of their communications regarding the Project will be considered Confidential Information, including but not limited to nonpublic product plans, designs, costs, prices, names,
finances, marketing plans, business opportunities, forecasts, orders, personnel, customer information, research, development, know-how, third party confidential information or information learned by Recipient from Discloser’s employees, agents
or through inspection of Discloser’s property; provided such information is clearly designated as “Confidential”: (i) in writing, if communicated in writing, or (ii) at the time of disclosure, if disclosed orally or visually.
Notwithstanding the foregoing, Confidential Information shall not include information that: (a) is now or subsequently becomes generally available to the public through no fault or breach on the part of Recipient; (b) Recipient can
demonstrate to have had rightfully in its possession prior to disclosure to Recipient by Discloser; (c) is independently developed by Recipient without the use of any Confidential Information; or (d) Recipient rightfully obtains from a
third party who has the right to transfer or disclose it to Recipient without limitation. Nothing in this Agreement will obligate either party to disclose any Confidential Information. 

2.    Nondisclosure and Nonuse of Confidential Information. Recipient agrees to protect Discloser’s
Confidential Information, using at least the same degree of care that it uses to protect its own confidential and proprietary information of similar importance, but no less than a reasonable degree of care. Recipient agrees to use Discloser’s
Confidential Information for the sole purpose of evaluation in connection with the Project and discussions with Discloser related to the Project, or as otherwise agreed upon in writing by an authorized representative of Discloser. Recipient will not
disclose, publish, or disseminate Confidential Information to anyone other than those of its employees and consultants who have a need to know in order to accomplish such purpose and who are bound by a written agreement that prohibits unauthorized
disclosure or use of Confidential Information. Recipient will be responsible for any violation of the terms of this Agreement by its employees and consultants. Recipient agrees not to use Confidential Information for any other purpose or for its own
or any third party’s benefit without the prior written consent of an authorized representative of Discloser in each instance. Recipient may disclose Confidential Information to the extent required by law, provided Recipient makes reasonable
efforts to give Discloser notice of such requirement prior to any such disclosure and takes reasonable steps to obtain protective treatment of the Confidential Information. 

3.    No License to Confidential Information. Except as expressly set forth herein, no license or other
rights to Confidential Information are granted or implied hereby and the Discloser retains all of its rights therein. 

 4.    Feedback. Notwithstanding any other provision in
this Agreement, if Recipient provides any ideas, suggestions or recommendations to Discloser regarding Discloser’s Confidential Information (“Feedback”), Discloser is free to use and incorporate such Feedback in Discloser’s
products, without payment of royalties or other consideration to Recipient, so long as Discloser does not infringe Recipient’s patents, copyrights or trademark rights in the Feedback. Nothing in this Agreement is intended to grant a license or
waive any rights in either party’s patents, copyrights or trademarks. 
 5.    Independent Development.
Discloser understands that Recipient may currently or in the future be developing Confidential Information internally, or receiving Confidential Information from other parties that may be similar to Discloser’s Confidential Information.
Nothing in this Agreement will prohibit Recipient from developing products, or having products developed for it, that compete with Discloser’s products, provided that in doing so, Recipient does not use or disclose Discloser’s Confidential
Information. 
 6.    Residuals. Through the course of receiving Confidential Information, Recipient may
increase their intangible knowledge and experience about the subject matter of the Confidential Information disclosed. Notwithstanding anything to the contrary, the subsequent use of such knowledge and experience is permitted provided that Recipient
does not intentionally memorize Confidential Information or refer to or base any such subsequent use on written materials containing Confidential Information. The foregoing does not constitute a license, express or implied, by Discloser to Recipient
to any patent or copyright of Discloser. 
 7.    No Warranty. Discloser warrants that it has the right to
disclose the Confidential Information to Recipient. Otherwise, all information is provided “AS IS” and without any warranty, express, implied or otherwise, regarding its accuracy or performance. 

8.    Return of Documents. Within ten (10) business days of receipt of Discloser’s written request,
and at Discloser’s option, Recipient will either return to Discloser all tangible Confidential Information, including but not limited to all electronic files, documentation, notes, plans, drawings, and copies thereof, or will provide Discloser
with written certification that all such tangible Confidential Information of Discloser has been destroyed. 

9.    Term and Termination. Recipient’s duty to protect Discloser’s Confidential Information
expires five (5) years from the date on which that Confidential Information was disclosed to Recipient. Either party may terminate this Agreement upon ten (10) days written notice; however, any termination of this Agreement shall not
relieve Recipient of its confidentiality and use obligations with respect to Confidential Information disclosed prior to the date of termination. 

10.    No Implied Waiver. Neither party’s failure nor delay in exercising any of its rights will
constitute a waiver of such rights unless expressly waived in writing. 
 11.    No Assignment. This
Agreement may not be assigned by either party by any means, including without limitation, by operation of law or merger, without the prior, written consent of the other party. Any attempted assignment of this Agreement in violation of this section
will be void. 

 12.    Entire Agreement and Governing Law. This Agreement
constitutes the entire agreement with respect to the Confidential Information disclosed pursuant to this Agreement and supersedes all prior or contemporaneous oral or written agreements concerning such Confidential Information. This Agreement may
not be amended except by written agreement signed by authorized representatives of both parties. This Agreement will be governed by the laws of the Province of Alberta, without reference to conflict of laws principles. All disputes arising under or
in connection with this Agreement will be finally resolved by a single arbitrator in accordance with the Arbitration Act (Alberta), with the decision of such arbitrator to be provided within thirty (30) days after the arbitrator is
designated. The arbitration will be conducted in English in Calgary, Alberta. Judgment upon any award rendered by the arbitrator may be confirmed or enforced in any court having jurisdiction. All materials in the proceedings created for the purpose
of the arbitration, all other documents produced by another party in the proceedings not otherwise in the public domain, and all awards in the arbitration will be deemed “Confidential Information”, except to the extent disclosure may be
required of a party by legal duty to protect or pursue a legal right or to enforce or challenge an award in legal proceedings before a court or other judicial authority. 

    Understood and agreed to by the authorized representatives of the parties: 

 

			
	APPCOLONY INC.
		
	Per:	 	 /s/ [***]

	Name:	 	[***]
	Title:	 	[***]
	
	SUNDIAL GROWERS INC.
		
	Per:	 	 /s/ [***]

	Name:	 	[***]
	Title:	 	[***]

 SCHEDULE “C” 

to the Professional Services Agreement effective as of July 8, 2019 (the “Agreement”) between AppColony Inc.
(“AppColony”) and Sundial Growers Inc. (the “Client”). 
 CHANGE ORDER 

Requestor: Sundial Growers Inc. 
  

			
	Contact:	  	Change Effective Date:

 Attaches to Schedule “A” dated: 

CHANGES REQUESTED 
  

			
	Resource:	  	Services:
		
	End date for Services:	  	Fees:

 Special/Additional Requests: 

Description: 
 IN WITNESS WHEREOF the parties have
executed this Agreement as of the first date above written. 
  

			
	APPCOLONY INC.

			
		
	Per:	 	  

	Name:	 	
	Title:	 	
	
	Sundial Growers Inc.
		
	Per:	 	  

	Name:	 	
	Title:

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