Document:

Exhibit 10.1

 

EXECUTION VERSION

 

LOAN AGREEMENT

 

This LOAN AGREEMENT
(as amended, restated, modified and/or supplemented, from time to time, this “Agreement”), dated as of October
30, 2020, is made by and among HIGH STREET CAPITAL PARTNERS, LLC, a Delaware limited liability company (the “Borrower”),
those Persons from time to time party to this Agreement as a “Lender” (collectively, the “Lenders”
and individually, each a “Lender”), and ACQUIOM AGENCY SERVICES LLC, a Colorado limited liability company, as
administrative and collateral agent (“Agent”) for the Lenders.

 

Background of Agreement

 

The Borrower has requested
that the Lenders provide up to $70,000,000.00 in a secured term loan (the “Credit Facility”) for the purposes
set forth herein.

 

The Lenders are willing
to make the Credit Facility available to the Borrower upon the terms and conditions set forth herein.

 

NOW, THEREFORE, the
parties hereto hereby agree as follows:

 

Article
1

DEFINITIONS

 

1.1          
Defined Terms. As used in this Agreement, the following terms shall have the meanings specified in
this Section 1.1 unless the context otherwise requires.

 

Acquisition:
means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the
acquisition of all or substantially all of the assets of a Person, or of any business or division of a Person, or (b) the
acquisition of in excess of fifty percent (50%) of the Stock of any Person or otherwise causing any Person to become a Subsidiary
of Borrower.

 

Adjusted
EBITDA: means, for any period, net income (or loss) for the applicable period of measurement of the Parent,
consolidated with its Subsidiaries (other than Universal Hemp LLC), determined in accordance with GAAP, without duplication
of any item described under clause (a) or (b) below, in each case to the extent taken into account in the calculation of net
income (or loss) for such period: (a) Less (i) gains (or plus losses) from the sale, exchange, transfer or other
disposition of Property not in the ordinary course of business of the Parent and its Subsidiaries (other than Universal Hemp
LLC), and related tax effects in accordance with GAAP, (ii) income from investments; and (b) Plus (i) non-cash
impairment losses, (ii) transaction costs incurred in connection with that certain Arrangement Agreement dated April 18, 2019
between the Parent and Canopy Growth Corporation (“Canopy”), as amended (such agreement being the
 “Canopy Arrangement Agreement”), pursuant to which Canopy has the option to purchase all of the Class E
subordinate voting shares (after conversion of the Class F multiple voting shares) (the “Fixed Shares”)
and, if exercised, the Class D subordinate voting shares of the Parent, (iii) other non-recurring expenses, including
non-recurring legal costs related to matters where the Parent or any of its Subsidiaries (other than Universal Hemp LLC) are
defending themselves or pursuing actions against a third-party, in an amount not to exceed $4,000,000 per fiscal year and
$1,000,000 per fiscal quarter, and (iv) equity-based compensation.

 

     

     

    

 

Administrative
Questionnaire: means an administrative questionnaire in a form supplied by Agent (the current form of which is attached
hereto as Exhibit F) or such other form provided by a Lender and acceptable to Agent.

 

Affiliate:
with respect to a specified Person, a Person that directly or indirectly Controls, is Controlled by, or is under common Control
with, such Person. Without limitation, any director, executive officer or beneficial owner of twenty percent or more of the Stock
(either directly or indirectly) of a Person shall for the purposes of this Agreement, be deemed to be an Affiliate of such Person.
The term Affiliate excludes Canopy or any Subsidiaries of Canopy until Canopy acquires the Fixed Shares of the Parent pursuant
to the Canopy Arrangement Agreement.

 

Agent:
has the meaning set forth in the introductory paragraph hereof. For the avoidance of doubt, any reference herein or in any other
Loan Document to “collateral agent” (or “Collateral Agent”) or “administrative agent” (or “Administrative
Agent”) (and any provision benefitting, or granting any right or power to, “collateral agent” (or “Collateral
Agent”) or “administrative agent” (or “Administrative Agent”)) shall, unless the context requires
otherwise, be construed as a reference to (and provision benefitting, or granting any right or power to) Agent.

 

Agent Fee Letter:
means that certain letter agreement, dated as of the Closing Date, by and between the Borrower and Acquiom Agency Services LLC,
in its capacity as Agent, as amended, amended and restated, supplemented or otherwise modified from time to time in accordance
with the terms thereof.

 

Agreement:
the meaning specified in the introductory paragraph hereof.

 

Anti-Corruption
Laws: means any anti-corruption laws, including the U.S. Foreign Corrupt Practices Act
of 1977.

 

Anti-Terrorism
Laws: means any law, judgment, order, executive order, decree, ordinance, rule or regulation related to terrorism financing,
money laundering or Sanctions including Part II.1 and Part XII.2 of the Criminal Code, the Proceeds of Crime (Money Laundering)
and Terrorist Financing Act, S.C. 2000, c. 17, and regulations promulgated pursuant to the Special Economic Measures Act,
S.C. 1992, c. 17, the United Nations Act, R.S.C. 1985, c. U-2 and the Justice for Victims of Corrupt Foreign Officials
Act, S.C. 2017, c. 21.

 

Approved Fund:
means, with respect to any Lender, any Person that (a)(i) is or will be engaged in making, purchasing, holding or otherwise investing
in commercial loans and similar extensions of credit in the ordinary course of business or (ii) temporarily warehouses loans for
any Lender or any Person described in clause (i) above and (b) is advised or managed by (i) such Lender, (ii) any Affiliate of
such Lender or (iii) any Person (other than an individual) or any Affiliate of any Person (other than an individual) that administers
or manages such Lender.

 

Assignment and
Acceptance: means an assignment and acceptance entered into by a Lender and an Eligible Assignee, and accepted by Agent
to the extent required by Section 9.13, in substantially the form of the attached Exhibit E.

 

    2 

     

    

 

Benefit Plan:
means any employee benefit plan as defined in Section 3(3) of ERISA (whether governed by the laws of the United States or otherwise)
maintained, sponsored, or contributed to, or required to be contributed to by a Guarantor or Borrower or any Subsidiary of a Guarantor
or Borrower or with respect to which any such party otherwise has any Liabilities.

 

Borrower:
the meaning specified in the introductory paragraph hereof.

 

Borrower Investors:
means the holders of Stock in Acreage Holdings, Inc., Acreage Holdings WC, Inc. and/or the Borrower.

 

Business Day:
any day other than a Saturday, Sunday or day which shall be in the State of New York a legal holiday or day on which banking institutions
are required or authorized to close. In the event that payment or performance of any covenant, duty or obligation is stated to
be due or performance is required on (or before) a day that is not a Business Day (other than a payment to be made by adding and
capitalizing the amount thereof to the principal balance of a Loan), then the time for such performance or payment shall be extended
to the next Business Day and such extension of time shall be reflected in computing interest or fees, as the case may be.

 

Cannabis License:
means a license or permit for the sale, processing or cultivation of cannabis or cannabis-related products now or hereafter
held by a Loan Party or by a third-party in connection with a Management Services Agreement with a Loan Party permitting such Loan
Party to undertake the sale, processing or cultivation of cannabis or cannabis-related products pursuant to the Cannabis License
held by such third-party. Schedule III sets forth each Cannabis License held by a Loan Party or held by such a third-party, and
if held by such a third-party, the applicable Management Services Agreement.

 

Capital Lease:
means, with respect to any Person, any lease of, or other arrangement conveying the right to use, any property by such Person as
lessee that has been or should be accounted for as a capital lease on a balance sheet of such Person prepared in accordance with
GAAP.

 

Cash
Equivalents: means (a) any readily-marketable securities (i) issued by, or directly, unconditionally and fully
guaranteed or insured by the United States federal government or (ii) issued by any agency of the United States federal
government the obligations of which are fully backed by the full faith and credit of the United States federal government,
(b) any readily-marketable direct obligations issued by any other agency of the United States federal government, any
state of the United States or any political subdivision of any such state or any public instrumentality thereof, in each case
having a rating of at least “A-1” from S&P or at least “P-1” from Moody’s, (c) any
commercial paper rated at least “A-1” by S&P or “P-1” by Moody’s and issued by any Person
organized under the laws of any state of the United States, (d) any Dollar-denominated time deposit, insured certificate
of deposit, overnight bank deposit or bankers’ acceptance issued or accepted by (i) any Lender or (ii) any commercial
bank that is (A) organized under the laws of the United States, any state thereof or the District of Columbia, (B)
 “adequately capitalized” (as defined in the regulations of its primary federal banking regulators) and (C) has
Tier 1 capital (as defined in such regulations) in excess of $250,000,000 and (e) shares of any United States money market
fund that (i) has substantially all of its assets invested continuously in the types of investments referred to in clause
(a), (b), (c) or (d) above with maturities as set forth in the proviso below, (ii) has net assets in excess of $500,000,000
and (iii) has obtained from either S&P or Moody’s the highest rating obtainable for money market funds in the
United States; provided, however, that the maturities of all obligations specified in any of clauses (a), (b), (c) or (d)
above shall not exceed 365 days.

 

    3 

     

    

 

Change of Control:
means (a) any Person (or any successor to it continuing from any amalgamation, merger or other reorganization) or group of Persons
acting jointly or in concert becoming the owner, directly or indirectly, beneficially or of record, of Stock representing more
than 50% of the aggregate ordinary voting power represented by the outstanding share capital of the Borrower or any Parent Guarantor,
(b) any sale, lease, exchange or other transfer (in one transaction or series of related transactions) of all or substantially
all of the Loan Parties, on a consolidated basis, property and assets, (c) Borrower’s shareholders approve any plan or proposal
for the liquidation or dissolution of any of the Loan Parties, or (d) Borrower shall at any time cease to own, directly or indirectly,
one hundred percent (100%) of the issued and outstanding Stock of any Guarantor other than any Parent Guarantor. The term Change
of Control shall not include Canopy’s acquisition of all or a portion of the shares of the Parent pursuant to the Canopy
Arrangement Agreement.

 

Closing Date:
shall mean the date on which all of the conditions set forth in Article 3 shall have been satisfied or waived by Lender.

 

Code: means
the Internal Revenue Code of 1986, as amended, and all regulations and other guidance promulgated thereunder.

 

Collateral:
means all Property and interests in Property, excluding Intellectual Property (and excluding any other excluded collateral set
forth in the Security Documents), and proceeds thereof now owned or hereafter acquired by any Loan Party, and any other Person
who has granted a Lien to Agent for the benefit of the Lenders, in or upon which a Lien is granted, purported to be granted, or
now or hereafter exists in favor of any Lender or Agent for the benefit of the Lenders under any Loan Document.

 

Competitor:
means those Persons on Schedule IV.

 

Compliance Certificate:
means a certificate substantially in the form of Exhibit B.

 

Consolidated Debt
Service Coverage Ratio: means, for any two consecutive fiscal quarters of the Parent, consolidated with its Subsidiaries
(other than Universal Hemp LLC), ending on a Determination Date, the ratio of (a) Adjusted EBITDA for such two consecutive fiscal
quarters of the Parent, consolidated with its Subsidiaries (other than Universal Hemp LLC) multiplied by 2, to (b) Consolidated
Total Debt Service for such two consecutive fiscal quarters of the Parent, consolidated with its Subsidiaries (other than Universal
Hemp LLC) multiplied by 2.

 

Consolidated Total
Debt Service: means, for any particular period, the sum of the aggregate scheduled recurring principal payments and other
recurring interest expense payments payable on any Debt of the Parent and its Subsidiaries (other than Universal Hemp LLC) during
such period including under this Agreement (including interest expense attributable to the Term Loan payable during such period).
For avoidance of doubt, this excludes balloon maturity payments of principal (i.e. non-recurring principal payments).

 

    4 

     

    

 

[REDACTED –
COMMERCIALLY SENSITIVE]

 

Contractual Obligations:
means, as to any Person, any provision of any security (whether in the nature of Stock, or otherwise) issued by such Person or
of any agreement, undertaking, contract, indenture, mortgage, deed of trust or other instrument, document or agreement (other than
a Loan Document) to which such Person is a party or by which it or any of its property is bound or to which any of its property
is subject.

 

Control:
the possession, directly or indirectly, of the power to direct or cause the ‎direction of the management or policies of a
Person, whether through the ability to exercise ‎voting power, by contract or otherwise. “Controlling”
and “Controlled” have meanings ‎correlative thereto.‎

 

Copyrights:
means all rights, title and interests (and all related IP Ancillary Rights) arising under any requirement of Law in or relating
to copyrights and all mask work, database and design rights, whether or not registered or published, all registrations and recordations
thereof and all applications in connection therewith.

 

Core Entities:
means those entities set forth on Schedule I under the heading “Core Entities”.

 

Core States:
means Connecticut, Illinois, Maine, Massachusetts, New Hampshire, New Jersey, New York, Ohio and Pennsylvania.

 

Credit Facility:
the meaning specified in the Background Section hereof.

 

Debt of
any Person means (without duplication):

 

(a)              
all indebtedness of such Person for borrowed money, including borrowings of commodities, prepaid forward sales of
commodities, bankers’ acceptances, letters of credit or letters of guarantee;

 

(b)              
all indebtedness of such Person for the deferred purchase price of assets or services, other than for assets and
services purchased in the ordinary course of business and paid for in accordance with customary practice and not represented by
a note, bond, debenture or other evidence of Debt;

 

(c)              
all obligations of such Person represented by a note, bond, debenture or other evidence of Debt;

 

(d)              
all obligations under Capital Leases and all obligations under synthetic leases, in each case, in respect of which
such Person is liable as lessee;

 

(e)              
all obligations of such Person to purchase, redeem, retire, defease, or otherwise make any payment in respect of
any equity securities in such Person or any other Person or any warrants, rights, or options to acquire such equity securities,
valued, in the case of redeemable preferred interests, at the greater of its voluntary or involuntary liquidation preference plus
accrued and unpaid dividends;

 

    5 

     

    

 

(f)               
 the net amount payable by such Person under derivatives agreements, provided that such amount shall only constitute
Debt if such derivatives agreements have been closed out or terminated; and

 

(g)              
all Debt of another entity of a type described in clauses (a) through (g) which is directly or indirectly guaranteed
by such Person, which is secured by a Lien on any assets of such Person, which such Person has agreed (contingently or otherwise)
to purchase or otherwise acquire, or in respect of which such Person has otherwise assured a creditor or other entity against loss.

 

Debtor Relief Laws:
the Bankruptcy Code of the United States of America, and all other liquidation, conservatorship, bankruptcy, assignment for the
benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect.

 

Default:
any condition or event which, with notice or lapse of time or both, would become an Event of Default.

 

Defaulting Lender:
means any Lender has failed to (i) fund any payments required to be made by it under the Loan Documents within two (2) Business
Days after any such payment is due or (ii) pay to Agent or any other Lender any other amount required to be paid by it hereunder
within two (2) Business Days of the date when due.

 

Default Rate:
20% per annum, subject to Section 2.7.1 with respect to the Initial Increase and Section 2.7.2 with respect to the Additional Increase.

 

Determination Date:
means the last day of each calendar quarter commencing with the calendar quarter ending on: (a) March 31, 2021 for purposes of
Section 7.1 or (b) June 30, 2021 for purposes of Section 7.2.

 

Disposition:
means, with respect to any Person, the sale, transfer or other disposition with or without recourse, of (a) any notes or accounts
receivable or any rights and claims associated therewith, (b) any Equity Interests of such Person or any Subsidiary of such Person,
or (c) any other Property, provided, however, that none of the following shall constitute a Disposition: (i) any
sale, transfer, license, lease or other disposition by (A) a Loan Party to another Loan Party or any Subsidiary of any Loan Party
or (B) a Non-Loan Party Subsidiary to another Non-Loan Party Subsidiary, (ii) the collection of accounts receivable and other obligations
in the ordinary course of business, (iii) sales of inventory or equipment in the ordinary course of business, (iv) sales, transfers,
licenses, leases or other dispositions resulting in aggregate Net Cash Proceeds not exceeding $500,000 during any Fiscal Year;
(v) the conversion of cash into Cash Equivalents and Cash Equivalents into cash; (vi) the termination of any swap agreements (as
such term is defined in Section 101 of the Debtor Relief Laws; provided, that no Event of Default shall exist or shall result therefrom;
and (vii) sales, transfers and dispositions of accounts in connection with the compromise, settlement or collection thereof. Each
of the terms “Dispose” and “Disposed” when used as a verb shall have an analogous meaning.

 

Disqualified Person:
means, on any date, any Person that is a Competitor or an Affiliate of a Competitor.

 

    6 

     

    

 

Eligible Assignee:
means any Person that meets the requirements to be an assignee under Section 9.13 (subject to such consents, if any, as may be
required under Section 9.13.(c)).

 

Environmental Laws:
means all Laws imposing liability or standards of conduct for or relating to the regulation and protection of human health, safety,
the workplace, the use, storage and presence of, and exposure to, Hazardous Material, the environment and natural resources, including
requirements relating to underground storage tanks, the use, storage, transport, Release or presence of petroleum and petroleum
products, public notification, and environmental transfer of ownership, notification or approval statutes.

 

ERISA:
means the Employee Retirement Income Security Act of 1974, as amended, and all regulations and other guidance promulgated thereunder.

 

ERISA Affiliate:
means any Loan Party and any entity required to be aggregated with any Loan Party under Section 414 of the Code or any entity under
common control with any Loan Party within the meaning of Section 4001 of ERISA.

 

ERISA Event:
means any of the following: (a) a reportable event described in Section 4043(c) of ERISA (other than those events as to which the
thirty day notice period is waived) with respect to a Title IV Plan; (b) the withdrawal of any ERISA Affiliate from a Title IV
Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer, as defined in Section 4001(a)(2)
of ERISA; (c) the complete or partial withdrawal of any ERISA Affiliate from any Multiemployer Plan; (d) with respect to any Multiemployer
Plan, the filing of a notice of reorganization, insolvency or termination, or treatment of a plan amendment as termination, under
Section 4041A of ERISA; (e) the filing of a notice of intent to terminate a Title IV Plan, or treatment of a plan amendment as
termination, under Section 4041 of ERISA; (f) the institution of proceedings to terminate a Title IV Plan or Multiemployer Plan
by the PBGC; (g) the failure to make any required contribution to any Title IV Plan or Multiemployer Plan when due; (h) the
imposition of a Lien under Section 412 or 430(k) of the Code or Section 303 or 4068 of ERISA on any property (or rights to property,
whether real or personal) of any ERISA Affiliate; (i) the failure of a Benefit Plan or any trust thereunder intended to qualify
for tax exempt status under Section 401 or 501 of the Code to qualify thereunder; (j) a Title IV plan is in “at risk”
status within the meaning of Code Section 430(i); (k) a Multiemployer Plan is in “endangered status” or “critical
status” within the meaning of Section 432(b) of the Code; and (l) any other event or condition that constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Title IV Plan or Multiemployer
Plan or for the imposition of any liability upon any ERISA Affiliate under Title IV of ERISA other than for contributions to Title
IV Plans and Multiemployer Plans in the ordinary course and PBGC premiums due but not delinquent.

 

Event of Default:
the meaning specified in Section 8.1.

 

Federal Cannabis
Laws: means the Controlled Substances Act, 21 USC 801 et seq. as it applies to marijuana
(including any implementing regulations and schedules in effect at the relevant time) or any other federal law of the United States
the violation of which is predicated upon a violation of the Controlled Substances Act as it applies to marijuana.

 

    7 

     

    

 

GAAP: means
generally accepted accounting principles in the United States, as in effect from time to time, set forth in the opinions and pronouncements
of the Accounting Principles Board and the American Institute of Certified Public Accountants, in the statements and pronouncements
of the Financial Accounting Standards Board (or agencies with similar functions and comparable stature and authority within the
accounting profession) that are applicable to the circumstances as of the date of determination.

 

Governmental Authority:
the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local,
and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including any supra-national
bodies such as the European Union or the European Central Bank).

 

Guarantor:
means each of the Parent Guarantors and each of the entities listed on Schedule II hereto, and their respective successors and
permitted assigns, and any other Person that has guaranteed any Obligations.

 

Guaranty:
means that certain Guaranty Agreement entered into as of the date hereof, in form and substance reasonably satisfactory to the
Lenders, made by the Guarantors in favor of Agent for the benefit of the Lenders.

 

Hazardous Material:
 means any substance, material or waste that is classified, regulated or otherwise characterized under any Environmental Law
as hazardous, toxic, a contaminant or a pollutant or by other words of similar meaning or regulatory effect, including petroleum
or any fraction thereof, asbestos, polychlorinated biphenyls and radioactive substances.

 

Illinois Facility:
has the meaning specified in Section 5.13.

 

Indemnitee:
the meaning specified in Section 9.9.2.

 

Intellectual Property:
means all rights, title and interests in or relating to (a) intellectual property and industrial property arising under any
requirement of Law, including all Copyrights, Patents, Software, Trademarks, Internet Domain Names, Trade Secrets, (b) all IP Ancillary
Rights relating thereto and (c) IP Licenses.

 

Interest Rate:
shall mean 15% per annum, subject to Section 2.7.1 with respect to the Initial Increase and Section 2.7.2 with respect to the Additional
Increase.

 

Internet Domain
Name: means all right, title and interest (and all related IP Ancillary Rights) arising under any Law in or relating to
internet domain names.

 

Investment:
means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the
purchase or other acquisition of any of the Stock of another Person, (b) a loan, advance or capital contribution to,
guarantee or assumption of debt of, or purchase or other acquisition of any other debt or equity participation or interest
in, another Person, or (c) an Acquisition. For purposes of covenant compliance, the amount of any Investment shall be
the amount actually invested, without adjustment for subsequent increases or decreases in the value of such Investment or any
returns of capital.

 

    8 

     

    

 

IP Ancillary Rights:
means, with respect to any Intellectual Property (of the type described in clauses (a) and (c) of the definition of Intellectual
Property), as applicable, all foreign counterparts to, and all divisionals, reversions, continuations, continuations-in-part, reissues,
reexaminations, renewals and extensions of, such Intellectual Property and all income, royalties, proceeds and Liabilities at any
time due or payable or asserted under or with respect to any of the foregoing or otherwise with respect to such Intellectual Property,
including all rights to sue or recover at law or in equity for any past, present or future infringement, misappropriation, dilution,
violation or other impairment thereof, and, in each case, all rights to obtain any other IP Ancillary Right.

 

IP License:
means all Contractual Obligations (and all related IP Ancillary Rights), whether written or oral, granting any right, title and
interest in or relating to any material Intellectual Property of the type described in clause (a) of the definition of Intellectual
Property.

 

Law: all
common law and all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses
(including any Cannabis License), approvals, interpretations and orders of courts or Governmental Authorities and all orders and
decrees of all courts and arbitrators, excluding in any event Federal Cannabis Laws.

 

Liabilities:
means all claims, actions, suits, judgments, damages, losses, liability, obligations, responsibilities, fines, penalties,
sanctions, costs, fees, Taxes, commissions, charges, disbursements and expenses (including those incurred upon any appeal or in
connection with the preparation for and/or response to any subpoena or request for document production relating thereto), in each
case of any kind or nature (including interest accrued thereon or as a result thereof and fees, charges and disbursements of financial,
legal and other advisors and consultants), whether joint or several, whether or not indirect, contingent, consequential, actual,
punitive, treble or otherwise.

 

Lien: means
any mortgage, deed of trust, trust or deemed trust, lien (statutory or otherwise), pledge, assignment, hypothecation, encumbrance,
charge, security interest, deposit arrangement, royalty interest, claim, right of detention or seizure, right of distraint, easement,
or right of set off (other than a right of set off arising in the ordinary course), including the interest of a vendor or a lessor
under any conditional sale agreement, Capital Lease, title retention agreement or consignment agreement (or any financing lease
having substantially the same economic effect as any of the foregoing), and any other agreement, trust or arrangement that in substance
secures payment or performance of an obligation.

 

Liquidity:
means, as of any date, on a consolidated basis, the Parent’s unrestricted cash on hand.

 

Loan
Documents: this Agreement, the Notes, the Guaranty, the Pledge Agreement, the Security Agreement and any and all
agreements and instruments executed by the Borrower or a Guarantor and delivered to Agent and/or any Lender in connection
with the foregoing, as the same may be amended, modified or supplemented from time to time.

 

    9 

     

    

 

Loan Parties:
means, collectively, the Borrower and the Guarantors.

 

Management Services
Agreement: means a Management Services Agreement or similar arrangement between any Loan Party and any third party holder
of a Cannabis License; the Management Services Agreements to which any Loan Party is a party as of the date hereof are described
on Schedule III attached hereto.

 

Margin Stock:
means “margin stock” as such term is defined in Regulation T, U or X of the Federal Reserve Board.

 

Material Adverse
Effect: means (a) a material adverse effect on the business, operations, results of operations, assets, liabilities or
financial condition of the Loan Parties taken as a whole, (b) a material adverse effect on the ability of any of the Loan Parties
to perform its payment obligations under any Loan Document to which it is a party or of any of the Loan Parties to perform its
obligation under the Security Documents or (c) a material adverse effect on the rights and remedies of the Lender under any Loan
Document; provided, that in determining whether a Material Adverse Effect has occurred, there shall be excluded (i) any change
in GAAP; (ii) any effect that results from the failure by the Borrower to meet predictions, projections or forecasts of revenue,
net income or other results; (iii) the taking of any action approved or consented to by Agent; or (iv) any event, circumstance,
development, change, occurrence or effect to the extent resulting from, arising out of, or relating to any epidemic, pandemic or
disease outbreak (including the COVID-19 virus).

 

Material Property:
means, collectively, all Cannabis Licenses and all Mortgaged Property, any other Property owned by a Loan Party which has a book
value of $200,000 or more as of the Closing Date, and any other Property hereafter acquired by a Loan Party which has a value at
the time of purchase of $200,000 or more.

 

Material Contract:
means (i) the Management Services Agreements which are material to the Primary Business and (ii) any agreement, contract and/or
arrangement now or hereafter entered into (a) with a Loan Party and which has a value in excess of $1,000,000 in the aggregate,
including any agreement evidencing Debt, (b) any agreement, contract and/or arrangement by and between a Loan Party and any Governmental
Authority or any quasi-Governmental Authority which is material to the Primary Business, or (c) any other agreement, contract and/or
arrangement to which a Loan Party is a party the breach, non-performance, cancellation or failure to renew of which would reasonably
be expected to have a Material Adverse Effect.

 

Maturity Date:
the earlier of (i) October 30, 2024, or (ii) such earlier date as the Obligations are accelerated pursuant to the terms hereof.

 

Merger:
has the meaning specified in Section 6.8

 

Mortgage:
means any deed of trust, mortgage, deed to secure debt or other document creating a Lien on real property made by any Loan
Party in favor of, or for the benefit of, Agent (or a nominee or sub-agent therefor) for the benefit of the Lenders (or any
one or more of them), in form and substance reasonably satisfactory to Agent and the Borrower.

 

    10 

     

    

 

Mortgaged Property:
all real property now or hereafter owned by any Loan Party.

 

Multiemployer Plan:
means any multiemployer plan, as defined in Section 3(37) or 4001(a)(3) of ERISA, as to which any ERISA Affiliate has any obligation
to make regular contributions or otherwise has any Liabilities.

 

Net Cash Proceeds:
means, with respect to any Disposition by any Loan Party, the cash proceeds (including cash proceeds subsequently received (as
and when received) in respect of non-cash consideration initially received and including all insurance settlements (it being understood
and agreed that any such receipts of insurance settlements shall exclude proceeds of business interruption insurance) and condemnation
awards from any single event or series of related events) net of the sum, without duplication, of (i) transaction expenses (including
reasonable broker’s fees or commissions, legal fees, accounting fees, investment banking fees and other professional fees,
transfer and similar taxes and the Borrower’s good faith estimate of income taxes paid or payable in connection with the
receipt of such cash proceeds), (ii) amounts set aside as a reserve, in accordance with GAAP, including pursuant to any escrow
arrangement, against any liabilities under any indemnification obligations or other contingent liabilities and retained liabilities
(such as pension and other employment benefit liabilities and liabilities associated with environmental matters) associated with
such Disposition (provided that, to the extent and at the time any such amounts are released from such reserve, such amounts
shall constitute Net Cash Proceeds), (iii) Taxes paid or reasonably estimated to be payable as a result thereof, and (iv) the principal
amount, premium or penalty, if any, interest and other amounts on any indebtedness for borrowed money which is secured by the asset
sold in such Disposition and is required to be repaid with such proceeds (other than any such indebtedness assumed by the purchaser
of such asset).

 

Non-Core Entities:
means any Subsidiary of Borrower that owns Property located in a Non-Core State or holds a Cannabis License issued by a Non-Core
State, including, without limitation, those entities set forth on Schedule I under the heading “Non-Core Entities”.

 

Non-Core States:
means California, Florida, Michigan, Oregon and Maryland.

 

Note: a
promissory note substantially in the form of Exhibit A hereto delivered by the Borrower to a Lender (including any successors or
assigns thereof) pursuant to this Agreement (including any amendments, modifications or supplements which may from time to time,
be created in respect of such notes), and any replacement promissory notes issued in lieu of the foregoing.

 

Notice of Borrowing:
a notice of borrowing substantially in the form of the attached Exhibit H signed by a Responsible Officer of the Borrower.

 

    11 

     

    

 

Obligations:
any and all indebtedness, obligations and liabilities of any type or nature, direct or indirect, absolute or contingent, due
or not due, liquidated or unliquidated, arising by operation of law or otherwise, now existing or hereafter arising or
created of any Loan Party to any Lender or Agent, related to the Term Loan or represented by or incurred pursuant or relating
to the Loan Documents. Without limiting the generality of the foregoing, the term “Obligations” shall
include:

 

(a)              
principal of, and interest on the Term Loan and the Notes; and

 

(b)              
any and all other fees, indemnities, costs, obligations (monetary and non-monetary) and liabilities of any Loan Party
from time to time under or in connection with the Loan Documents.

 

Organization Documents:
means, (a) for any corporation, the certificate or articles of incorporation, the bylaws, any certificate of determination or instrument
relating to the rights of preferred shareholders of such corporation, and any shareholder rights agreement, (b) for any partnership,
the partnership agreement and, if applicable, certificate of limited partnership, (c) for any limited liability company, the operating
agreement and articles or certificate of formation or (d) for any other entity, any other document setting forth the manner of
election or duties of the officers, directors, managers or other similar persons, or the designation, amount or relative rights,
limitations and preference of the Stock of such entity.

 

Original Issue
Discount: has the meaning specified in Section 3.2.

 

Parent:
means Acreage Holdings, Inc. a British Columbia corporation.

 

Parent Guarantor:
means any of Acreage Holdings, Inc. a British Columbia corporation, Acreage Holdings WC, Inc., a Nevada corporation, and Acreage
Holdings America, Inc., a Nevada corporation.

 

Patents:
means all rights, title and interests (and all related IP Ancillary Rights) arising under any Law in or relating to letters patent
and applications therefor.

 

PBGC: means
the United States Pension Benefit Guaranty Corporation or any successor thereto.

 

Permits:
means, with respect to any Person, any permit, approval, authorization, license, registration, certificate, concession, grant,
franchise, variance or permission from, and any other contractual obligations with, any Governmental Authority (other than any
Cannabis License), in each case whether or not having the force of law and applicable to or binding upon such Person or any of
its property or to which such Person or any of its property is subject.

 

Permitted Liens:
has the meaning ascribed to such term in Section 6.1.

 

Permitted Refinancing:
means Debt constituting a refinancing or extension of Debt existing on the Closing Date that (a) has an aggregate outstanding principal
amount not greater than the aggregate principal amount of the Debt being refinanced or extended, except by an amount equal to the
unpaid accrued interest and premium thereon, defeasance costs and other reasonable amounts paid and fees and expenses incurred
in connection therewith, (b) is not secured by a Lien on any assets other than the collateral securing the Debt being refinanced
or extended; and (c)
the obligors of which are the same as the obligors of the Debt being refinanced or extended.

 

    12 

     

    

 

Permitted Tax Distributions:
means, subject to the limitations and provisions herein, for each fiscal quarter (or portion thereof) of a fiscal year, a distribution
by the Borrower to the Borrower Investors holding equity interests in the Borrower in an amount of cash equal to (a) the taxable
net income reportable by the Borrower and allocated to such Borrower Investors for federal income tax purposes during such fiscal
quarter (or portion thereof) multiplied by (b) the Tax Rate. For purposes of this definition, the term “Tax Rate”
means the greater of (a) the highest combined marginal federal, state, and local income tax rates (for clarification, excluding
self-employment and similar taxes) that would be applicable to such Loan Party if such Loan Party were taxed as a corporation domiciled
in New York City, or (b) the highest combined marginal federal, state, and local income tax rates (for clarification, excluding
self-employment and similar taxes) that would be applicable to such Loan Party if such Loan Party were taxed as an individual resident
in New York City.

 

Person:
any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership, Governmental
Authority or other entity.

 

Platform:
has the meaning set forth in Section 9.1.4.

 

Pledge Agreement:
that Pledge Agreement dated as of the Closing Date by and among Borrower and the grantors defined therein, as pledgor, and Agent
for the benefit of the Lenders, as pledgee, in form and substance reasonably satisfactory to the Lenders, as the same may be amended,
amended and restated, supplemented and/or modified in accordance with the terms hereof and thereof with respect to the Pledged
Equity.

 

Pledged Equity:
shall mean the equity interests in the Core Entities.

 

Prepayment Premium:
means (i) with respect to any prepayment of all or any portion of the Term Loan, whether voluntary or following the exercise by
Lenders of remedies under the Loan Documents, prior to the second anniversary of the Closing Date, 7.5% of the outstanding amount
of the Term Loan being prepaid, and (ii) with respect to any prepayment of all or any portion of the Term Loan, whether voluntary
or following the exercise by Lenders of remedies under the Loan Documents, from and after the second anniversary of the Closing
Date and prior to the third anniversary of the Closing Date, 3.5% of the outstanding amount of the Term Loan being repaid.

 

Primary Business:
means (i) the cultivation, processing and sale of cannabis and cannabis-based products, (ii) the cultivation, processing and sale
of hemp and hemp-based products, (iii) the acquisition of other cannabis and hemp business, and (iv) all other businesses incidental
or ancillary to the foregoing.

 

Property:
means any Cannabis Licenses, Intellectual Property, personal property, or Real Estate owned by Borrower or any Affiliate of Borrower.

 

Pro-Rata Share:
means, with respect to a Lender relative to a set of some or all of the other Lenders, as the case may be, the ratio of the outstanding
principal amount of the Term Loan owned by such Lender to the sum of aggregate outstanding principal amount of the Term Loan owned
by such Lender and such other Lenders.

 

    13 

     

    

 

Real Estate:
has the definition given in Section 4.23.

 

Related Parties:
with respect to any Person, such Person’s Affiliates.

 

Release: 
means any release, threatened release, spill, emission, leaking, pumping, pouring, emitting, emptying, escape, injection, deposit,
disposal, discharge, dispersal, dumping, leaching or migration of Hazardous Material into or through the environment.

 

Required Lenders:
means, at any time, Lenders then holding more than fifty percent (50%) of the outstanding principal amount of the Term Loan.

 

Responsible Officer:
means the chief executive officer or the president of Borrower, or any other officer having substantially the same authority and
responsibility; or, with respect to compliance with financial covenants or delivery of financial information, the chief financial
officer or the treasurer of Borrower, or any other officer having substantially the same authority and responsibility.

 

Sanctioned Person:
means any Person that is a designated target of Sanctions or is otherwise a subject of Sanctions, including as a result of being
(a) owned, held or controlled by any person which is a designated target of Sanctions, (b) located or resident in, a national of,
or organized under, the laws of any country that is subject to general or country-wide Sanctions, or (c) a “designated person”,
a “politically exposed foreign person” or “terrorist group” as described in any Sanctions.

 

Sanctions:
means applicable economic or trade sanctions or other restrictive measures administered or enforced by a Governmental Authority
(including, in Canada, Global Affairs Canada and Public Safety Canada) or other relevant sanctions authority which governs transactions
in controlled goods or technologies or dealings with countries, entities, organizations or individuals subject to such economic
or trade sanctions or restrictive measures.

 

Security Agreement:
that Security Agreement dated as of the Closing Date by and between the Borrower and the Core Entities, as debtor, and Agent on
behalf of the Lenders, as secured party, in form and substance reasonably satisfactory to the Lenders, as the same may be amended,
amended and restated, supplemented and/or modified in accordance with the terms hereof and thereof.

 

Security Documents:
means, collectively, (a) the Security Agreement, (b) the Pledge Agreement and (c) any security agreement or other document, instrument
or agreement now or hereafter securing any Obligations or perfecting or protecting Lender’s security interests and Lien on
the Collateral (or given with the intent to secure, perfect or protect), in each case executed on or after the Closing Date pursuant
to the terms hereof or otherwise in connection with the transactions contemplated hereby.

 

‎Software:
means (a) all computer programs, including source code and object code versions, (b) all data, databases and compilations of data,
whether machine readable or otherwise, and (c) all documentation, training materials and configurations related to any of the foregoing.

 

    14 

     

    

 

Solvent:
means, (a) with respect to any Person organized under
the laws of Canada or any province or territory thereof, on a particular date, that on such date, (i) such Person is not
for any reason unable to meet its obligations as they generally become due, (ii) such Person has not ceased paying its current
obligations in the ordinary course of business as they generally become due, and (iii) the aggregate property of such Person is,
at a fair valuation, sufficient, or, if disposed of at a fairly conducted sale under legal process, would be sufficient, to enable
payment of all its obligations, due and accruing due, and (b) with respect to any Person organized
under the laws of a jurisdiction located within the United States on a particular date, that on such date (i) the fair value of
the property of such Person is greater than the total amount of liabilities, including, without limitation, contingent liabilities,
of such Person, (ii) the present fair saleable value of the assets of such Person is not less than the amount that will be required
to pay the probable liability of such Person on its debts as they become absolute and matured, (iii) such Person does not intend
to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities
as they mature and (iv) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction,
for which such Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities
at any time shall be computed as the amount that, in light of all the ‎facts and circumstances existing at such time, represents
the amount that can reasonably be expected ‎to become an actual or matured liability.‎

 

Stock:
means (a) all shares of capital stock (whether denominated as common stock or preferred stock), equity interests, beneficial, partnership
or membership interests, joint venture interests, participations or other ownership or profit interests in or equivalents (regardless
of how designated) of or in a Person (other than an individual), whether voting or non-voting; and (b) all securities convertible
into or exchangeable for any other Stock and all warrants, options or other rights to purchase, subscribe for or otherwise acquire
any other Stock, whether or not presently convertible, exchangeable or exercisable.

 

Subsidiary:
means, with respect to any Person (the “parent”) at any date, (i) any corporation, ‎limited liability
company, company, association or other business entity which the parent and/or ‎one or more subsidiaries of the parent Controls,
(ii) any partnership, (x) a general partner ‎or the managing general partner of which is the parent and/or one or more subsidiaries
of the ‎parent or (y) the only general partners of which are the parent and/or one or more subsidiaries of ‎the parent
and (iii) any other Person that is otherwise Controlled by the parent and/or one or more ‎subsidiaries of the parent.

 

Supermajority of
the Lenders: means, at any time, Lenders then holding more than sixty-six and 67/100 percent (66.67%) of the outstanding
principal amount of the Term Loan.

 

Taxes:
means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed
by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

Term Loan:
has the meaning set forth in Section 2.1.1 hereof and Section 2.7, pursuant to which the amount of the Term Loan may be increased.

 

    15 

     

    

 

Title IV Plan:
means a pension plan subject to Title IV of ERISA, other than a Multiemployer Plan, to which any ERISA Affiliate has any obligation
to make regular contributions or otherwise has any Liabilities.

 

Trade Secrets:
means all right, title and interest (and all related IP Ancillary Rights) arising under any requirement of Law in or relating to
trade secrets.

 

Trademark:
means all rights, title and interests (and all related IP Ancillary Rights) arising under any Law in or relating to trademarks,
trade names, corporate names, company names, business names, fictitious business names, trade styles, service marks, logos and
other source or business identifiers and, in each case, all goodwill associated therewith, all registrations and recordations thereof
and all applications in connection therewith.

 

UCC: means
the Uniform Commercial Code of any applicable jurisdiction and, if the applicable jurisdiction shall not have any Uniform Commercial
Code, the Uniform Commercial Code as in effect from time to time in the State of New York.

 

USA Patriot Act:
means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of
2001, P.L. 107-56.

 

Article
2

THE LOAN

2.1             
Term Loan.

 

2.1.1       
Commitment to Make Term Loan. Subject to and upon the terms and conditions set forth in this Agreement,
each Lender severally and not jointly agrees to lend to the Borrower on the Closing Date the principal amount set forth on Schedule
2.1 opposite such Lender’s name under the heading “Term Loan Commitment”. Amounts borrowed under this Section
2.1.1 and, if applicable, Section 2.7, are referred to as the “Term Loan”. The aggregate amount funded by the
Lenders on the Closing Date is referred to as the “Term Loan Amount”. The funding of the Term Loan Amount shall
be effected by each Lender depositing into an escrow account established by Agent immediately available funds equal to such Lender’s
Term Loan Commitment and depositing with Agent in escrow its signature page to this Agreement on or prior to the Closing Date and
by Agent, promptly following authorization from each Lender on the Closing Date, disbursing such funds to the Borrower and releasing
such signature pages to the Borrower and the other Lenders.

 

2.1.2       
Payments. All amounts of principal relating to the Term Loan and all other Obligations shall be due
and payable on the Maturity Date.

 

2.1.3       
Voluntary Payments. The Borrower may repay the Term Loan at any time, in whole or in part, together
with accrued interest thereon through such date, plus the Prepayment Premium, if applicable, and any other unpaid fees, charges
or other amounts accrued and owing to Lender as of such date.

 

    16 

     

    

 

2.1.4        Prepayments
at Option of the Lender. In the event that the Borrower or any of its Subsidiaries receives Net Cash Proceeds in
respect of any Disposition of a Non-Core Entity or any Property of a Non-Core Entity, then, not later than the third Business
Day following the receipt of such Net Cash Proceeds, the Borrower shall offer (the “Prepayment Offer”) the
Lenders to prepay the Term Loan in an amount equal to 100% of such Net Cash Proceeds from each such Disposition (the
 “Prepayment Amount”); provided, that with respect to the sale of Acreage Florida, Inc., the Prepayment
Amount shall equal 50% of the Net Cash Proceeds from such Disposition. Upon receipt of a Prepayment Offer, each Lender shall
have a period of five (5) days (the “Offer Period”) to provide written notice (the “Offer
Response”) to the Borrower as to whether such Lender will require the Borrower to pay the Prepayment Amount to such
Lender. For the avoidance of doubt, and notwithstanding anything to the contrary contained in Article 10, each Lender has the
right to decide for itself only whether it will require the Borrower to pay the Prepayment Amount, and no decision by any
Lender is binding on any other Lender. In the event a Lender has not delivered an Offer Response during the Offer Period,
such Lender shall be deemed to have elected not to require the Borrower to pay the applicable Prepayment Amount to such
Lender and Borrower shall not be required to pay to such Lender any prepayment with respect to the applicable Disposition. If
more than one Lender timely delivers an Offer Response requiring payment of a Prepayment Amount and the sum of the principal
balance of, and accrued, unpaid interest on, the Notes held by such Lenders exceeds the Prepayment Amount, then each such
Lender shall be entitled to its Pro-Rata Share of such Prepayment Amount. All prepayments shall be applied first to accrued,
unpaid interest and then to principal. No Prepayment Premium shall be owing or payable in relation to any prepayment under
this Section 2.1.4.

 

2.2             
Borrowing. If the conditions set forth in Article 3 of this Agreement are met (or waived by Lender),
each Lender, severally and not jointly, shall fund its Term Loan Commitment in its entirety to the Borrower on the Closing Date.

 

2.3             
Note. The principal amount of the Term Loan funded by a Lender shall be evidenced by a promissory note
issued by the Borrower to such Lender in substantially the form attached to this Agreement as Exhibit A. Upon receipt of
an affidavit of an officer of a Lender as to the loss, theft, destruction or mutilation of any Note, and in the case of any such
loss, theft, destruction or mutilation, upon cancellation of such Note, the Borrower will issue, in lieu thereof, a replacement
Note.

 

2.4             
Interest. All Obligations shall bear interest on the outstanding principal amount thereof at a rate
per annum equal to the Interest Rate. Interest shall be compounded monthly and payable monthly in arrears on the first Business
Day of each calendar month with respect to interest accrued during the preceding calendar month, except interest accrued during
October, 2020 will be payable on December 1, 2020 together with the interest accrued during November, 2020. All accrued, unpaid
interest shall be due and payable in full on the Maturity Date. All computations of interest shall be made on the basis of a year
of three hundred and sixty-five (365) days and actual days elapsed. Notwithstanding the foregoing, at the election of the Required
Lenders while any Event of Default exists (or automatically while any Event of Default under Section 8.1.4 exists), the Borrower
shall pay interest (after as well as before entry of judgment thereon to the extent permitted by law) on the Term Loan and past
due interest thereon, if any, from and after the date of occurrence of such Event of Default, at the Default Rate instead of the
Interest Rate. All such interest shall be payable in cash on demand of by Agent or the Lenders.

 

    17 

     

    

 

2.5             
 Purpose. The proceeds of the Term Loan shall be used by the Borrower solely for (i) repayment of existing
indebtedness, (ii) payment of transaction fees and expenses in connection with the Term Loan, (iii) the general working capital
needs and corporate purposes of the Borrower and/or any of its Subsidiaries and (iv) payment of the Original Issue Discount.

 

2.6             
Manner of Making Payments. All payments of monthly interest and principal shall be made by the Borrower
to each Lender to the account or at the address of such Lender as specified by Agent, in United States Dollars in immediately available
funds, without counterclaim or setoff and free and clear of, and without any deduction or withholding for, any Taxes or other payments.
The amount payable to each Lender and information regarding the account of each Lender shall be provided by Agent to Borrower in
a not less than five (5) Business Days prior to the date any such payment is due and payable hereunder.

 

2.7             
Increase in Term Loan.

 

2.7.1       
The Borrower may at any time and from time to time, upon prior written notice by the Borrower to the Lenders (the
 “Initial Increase Notice”), request an increase in the Term Loan by up to an amount equal to Thirty-Five Million
Dollars less the principal amount of the Term Loan Amount (the “Initial Increase”), provided (i) no Default
or Event of Default exists at the time of such request or at the time of the funding or would exist after giving effect to such
increase, (ii) all of the representations and warranties set forth in this Agreement and the other Loan Documents are true and
correct in all material respects (but in all respects if such representation or warranty is qualified by “material”
or “Material Adverse Effect”) at such times, and (iii) such request is accompanied by a Compliance Certificate (clauses
(i) through (iii) being the “Initial Increase Conditions”). The terms of the Initial Increase shall be the same
as the terms of the Term Loan Amount and shall be governed by the Loan Documents, except the Interest Rate (and/or the Default
Rate) and the amount of the Original Issue Discount, if any, applicable to the Initial Increase shall be subject to negotiation
and agreement between the Borrower and those Persons funding the Initial Increase. For the avoidance of doubt, the Initial Increase
shall not be subject to amortization and the scheduled maturity date applicable thereto shall be the Maturity Date. The Initial
Increase Notice shall set forth the Interest Rate, Default Rate and Original Issue Discount, if any, that the Borrower proposes
to pay in connection with the Initial Increase (the “Initial Increase Terms”).

 

(a)              
If the Borrower issues the Initial Increase Notice and the Initial Increase Conditions are satisfied, then each Lender
has the right, but not the obligation, to accept the Initial Increase Terms and to advance its Pro-Rata Share of the Initial Increase
to the Borrower in cash by no later than the tenth Business Day following the date of the Initial Increase Notice (the “Initial
Increase Funding Deadline”). If one or more Lenders fails to advance its Pro-Rata Share of the Initial Increase at the
Initial Increase Terms, then any other Lender shall have the right, but not the obligation, to increase its share of the funding
of the Initial Increase at the Initial Increase Terms. For the avoidance of doubt, and notwithstanding anything to the contrary
contained in Article 10, each Lender has the right to decide for itself only whether it will fund an advance of the Initial Increase
and whether it will accept or reject the Initial Increase Terms or other terms, and no decision by any Lender is binding on any
other Lender.

 

    18 

     

    

 

(b)              
 If the Lenders do not fund any or all of the Initial Increase by the Initial Increase Funding Deadline, then the
Borrower may seek funding from other Persons (“Additional Lenders”) selected by the Borrower, provided that
the Borrower may not offer or accept Initial Increase funding to or from an Additional Lender on terms that are more favorable
to such Additional Lender than the Initial Increase Terms (the “More Favorable Initial Increase Terms”) unless
the Borrower first offers the More Favorable Initial Increase Terms to the Lenders as provided in the following paragraph.

 

(c)              
If the Borrower elects to offer More Favorable Initial Increase Terms, the Borrower shall give written notice thereof
to the Lenders (an “Updated Initial Increase Notice”) setting forth the More Favorable Initial Increase Terms
and the unadvanced portion of the Initial Increase. Upon receipt of an Updated Initial Increase Notice, each Lender has the right,
but not the obligation, to accept the More Favorable Initial Increase Terms and to advance its Pro-Rata Share of the unadvanced
portion of the Initial Increase to the Borrower in cash by no later than the fifth Business Day following the date of the Updated
Initial Increase Notice (the “Updated Initial Increase Funding Deadline”). If one or more Lenders fails to advance
its Pro-Rata Share of the unadvanced portion of the Initial Increase at the More Favorable Initial Increase Terms, then any other
Lender shall have the right, but not the obligation, to increase its share of the funding of the unadvanced portion of the Initial
Increase at the More Favorable Initial Increase Terms.

 

(d)              
If the Lenders do not fund the entire unadvanced portion of the Initial Increase at the More Favorable Initial Increase
Terms by the Updated Initial Increase Funding Deadline, then the Borrower may seek funding from Additional Lenders at the More
Favorable Initial Increase Terms. Borrower may not offer or accept Initial Increase funding to or from an Additional Lender on
terms that are more favorable to such Additional Lender than the More Favorable Initial Increase Terms unless the process above
is repeated with respect to the even more favorable terms. The parties acknowledge that the procedure set forth above may result
in the Initial Increase being advanced at an Interest Rate, Default Rate and Original Issue Discount that differ from the corresponding
terms of the Term Loan Amount and may also result in the Interest Rate, Default Rate and Original Issue Discount applicable to
the Initial Increase varying among the Lenders and/or Additional Lenders depending on whether the Initial Increase Terms, More
Favorable Initial Increase Terms (or even more favorable terms) are offered and accepted by the parties.

 

(e)              
Prior to funding an advance of the Initial Increase, (i) an Additional Lender shall certify in writing to the Borrower
that such Person is not aware of anything in the background or record of such Person (or its officers, directors and principals,
if applicable) that would preclude such Person from obtaining the Cannabis Lien Approvals from the applicable Governmental Authorities
in the Approval Required States, and (ii) if such Person is rejected by any such applicable Governmental Authority, such Person
shall agree in writing to sell its portion of the Term Loan in accordance with Section 9.13, which sale shall be completed within
thirty (30) days from such rejection.

 

(f)                Prior
to funding its portion of the Initial Increase, an Additional Lender shall execute and deliver an Administrative
Questionnaire, which shall be delivered to Agent, and a joinder to this Agreement substantially in the form of Exhibit
C (the “Loan Agreement Joinder”) and shall thereupon constitute a “Lender” under this
Agreement. In no event shall the aggregate amount funded pursuant to this Section 2.7.1 exceed the Initial Increase. The
principal amount of the Initial Increase funded by a Lender shall be evidenced by a Note issued by the Borrower to such
Lender in substantially the form attached to this Agreement as Exhibit A, except each such Note shall reflect the
Interest Rate, Default Rate and Original Issue Discount as determined in accordance with the procedure described above. A
copy of each such Note shall be delivered to Agent and the Lenders. As an additional conditional precedent to the advance of
the Initial Increase or any portion thereof, the Guarantors shall execute and deliver an affirmation of the Guaranty in form
reasonably satisfactory to the Lenders pursuant to which the Guarantors affirm that the Guaranty applies to the Initial
Increase, in addition to the Term Loan Amount.

 

    19

     

    

 

(g)              
The proceeds of the Initial Increase shall be used by the Borrower solely for (i) repayment of existing Debt, (ii)
payment of transaction fees and expenses in connection with the Initial Increase, (iii) the general working capital needs and corporate
purposes of the Borrower and/or any of its Subsidiaries, and (iv) to fund Investments as and to the extent permitted by this Agreement.

 

2.7.2       
If the Borrower satisfies the conditions set forth in clauses (a) through (d) below, then the Borrower may at any
time and from time to time thereafter, upon prior written notice by the Borrower to the Lenders, request an additional increase
to the Term Loan by up Thirty-Five Million Dollars ($35,000,000) (the “Additional Increase”) thereby bringing
the Term Loan to Seventy Million Dollars ($70,000,000), provided (i) no Default or Event of Default exists at the time of such
request or at the time of the funding or would exist after giving effect to such increase, (ii) all of the representations and
warranties set forth in this Agreement and the other Loan Documents are true and correct in all material respects (but in all respects
if such representation or warranty is qualified by “material” or “Material Adverse Effect”) at such times
and (iii) such request is accompanied by a Compliance Certificate (the preceding clauses (i) through (iii) and clauses (a) through
(d) of Section 2.7.3 being the “Additional Increase Conditions”). The terms of the Additional Increase shall
be the same as the terms of the Term Loan Amount and shall be governed by the Loan Documents, except the Interest Rate (and/or
the Default Rate) and the amount of the Original Issue Discount, if any, applicable to the Additional Increase shall be subject
to negotiation and agreement between the Borrower and those Persons funding the Initial Increase. For the avoidance of doubt, the
Additional Increase shall not be subject to amortization and the scheduled maturity date applicable thereto shall be the Maturity
Date. The Additional Increase Notice shall set forth the Interest Rate, Default Rate and Original Issue Discount, if any, that
the Borrower proposes to pay in connection with the Additional Increase (the “Additional Increase Terms”).

 

(a)               If
the Borrower issues the Additional Increase Notice and the Additional Increase Conditions are satisfied, then each Lender has
the right, but not the obligation, to accept the Additional Increase Terms and to advance its Pro-Rata Share of the
Additional Increase to the Borrower in cash by no later than the tenth Business Day following the date of the Additional
Increase Notice (the “Additional Increase Funding Deadline”). If one or more Lenders fails to advance its
Pro-Rata Share of the Additional Increase at the Additional Increase Terms, then any other Lender shall have the right, but
not the obligation, to increase its share of the funding of the Additional Increase at the Additional Increase Terms. For the
avoidance of doubt, and notwithstanding anything to the contrary contained in Article 10, each Lender has the right to decide
for itself only whether it will fund an advance of the Additional Increase and whether it will accept or reject the
Additional Increase Terms or other terms, and no decision by any Lender is binding on any other Lender.

 

    20

     

    

 

(b)              
If the Lenders do not fund any or all of the Additional Increase by the Additional Increase Funding Deadline, then
the Borrower may seek funding from other Persons (“Additional Lenders”) selected by the Borrower, provided that
the Borrower may not offer or accept Additional Increase funding to or from an Additional Lender on terms that are more favorable
to such Additional Lender than the Additional Increase Terms (the “More Favorable Additional Increase Terms”)
unless the Borrower first offers the More Favorable Additional Increase Terms to the Lenders as provided in the following paragraph.

 

(c)              
If the Borrower elects to offer More Favorable Additional Increase Terms, the Borrower shall give written notice
thereof to the Lenders (an “Updated Additional Increase Notice”) setting forth the More Favorable Additional
Increase Terms and the unadvanced portion of the Additional Increase. Upon receipt of an Updated Additional Increase Notice, each
Lender has the right, but not the obligation, to accept the More Favorable Additional Increase Terms and to advance its Pro-Rata
Share of the unadvanced portion of the Additional Increase to the Borrower in cash by no later than the fifth Business Day following
the date of the Updated Additional Increase Notice (the “Updated Additional Increase Funding Deadline”). If
one or more Lenders fails to advance its Pro-Rata Share of the unadvanced portion of the Additional Increase at the More Favorable
Additional Increase Terms, then any other Lender shall have the right, but not the obligation, to increase its share of the funding
of the unadvanced portion of the Additional Increase at the More Favorable Additional Increase Terms.

 

(d)              
If the Lenders do not fund the entire unadvanced portion of the Additional Increase at the More Favorable Additional
Increase Terms by the Updated Additional Increase Funding Deadline, then the Borrower may seek funding from Additional Lenders
at the More Favorable Additional Increase Terms. Borrower may not offer or accept Additional Increase funding to or from an Additional
Lender on terms that are more favorable to such Additional Lender than the More Favorable Additional Increase Terms unless the
process above is repeated with respect to the even more favorable terms. The parties acknowledge that the procedure set forth above
may result in the Additional Increase being advanced at an Interest Rate, Default Rate and Original Issue Discount that differ
from the corresponding terms of the Term Loan Amount and may also result in the Interest Rate, Default Rate and Original Issue
Discount applicable to the Additional Increase varying among the Lenders and/or Additional Lenders depending on whether the Additional
Increase Terms, More Favorable Additional Increase Terms (or even more favorable terms) are offered and accepted by the parties.

 

(e)               Prior
to funding an advance of the Initial Increase, (i) an Additional Lender shall certify in writing to the Borrower that such
Person is not aware of anything in the background or record of such Person (or its officers, directors and principals, if
applicable) that would preclude such Person from obtaining the Cannabis Lien Approvals from the applicable Governmental
Authorities in the Approval Required States, and (ii) if such Person is rejected by any such applicable Governmental
Authority, such Person shall agree in writing to sell its portion of the Term Loan in accordance with Section 9.13, which
sale shall be completed within thirty (30) days from such rejection.

 

    21

     

    

 

(f)               
Prior to funding its portion of the Additional Increase, an Additional Lender shall execute and deliver an Administrative
Questionnaire, which shall be delivered to Agent, and a Loan Agreement Joinder, and shall thereupon constitute a “Lender”
under this Agreement. In no event shall the aggregate amount funded pursuant to this Section 2.7.2 exceed $35,000,000. The principal
amount of the Additional Increase funded by a Lender shall be evidenced by a Note issued by the Borrower to such Lender in substantially
the form attached to this Agreement as Exhibit A, except each such Note shall reflect the Interest Rate, Default Rate and
Original Issue Discount as determined in accordance with the procedure described above. A copy of each such Note shall be delivered
to Agent and the Lenders. As an additional conditional precedent to the advance of the Additional Increase or any portion thereof,
the Guarantors shall execute and deliver an affirmation of the Guaranty in form reasonably satisfactory to the Lenders pursuant
to which the Guarantors affirm that the Guaranty applies to the Additional Increase, in addition to the Initial Increase and the
Term Loan Amount.

 

(g)              
The proceeds of the Initial Increase shall be used by the Borrower solely for (i) repayment of existing Debt, (ii)
payment of transaction fees and expenses in connection with the Initial Increase, (iii) the general working capital needs and corporate
purposes of the Borrower and/or any of its Subsidiaries, and (iv) to fund Investments as and to the extent permitted by this Agreement.

 

2.7.3       
In no event shall the Borrower request the Additional Increase or any portion thereof until the following conditions
have been satisfied:

 

(a)              
The annualized Adjusted EBITDA of the Parent and its Subsidiaries (other than Universal Hemp LLC), taken as a whole,
shall be at least $30 Million based on the trailing Adjusted EBITDA of two consecutive fiscal quarters (trailing two fiscal quarters
times two);

 

(b)              
Borrower and its Subsidiaries, taken as a whole, shall have received Net Cash Proceeds of at least $30 Million Dollars
from Dispositions of Non-Core Entities or the Property owned by Non-Core Entities;

 

(c)              
Borrower shall have fully completed the buildout/expansion of the Illinois Facility; and

 

(d)              
Borrower shall have hired a new permanent chief executive officer.

 

Article
3

CONDITIONS TO FUNDING

 

3.1             
Conditions to Funding. Each Lender, severally and not jointly, shall be required to fund its entire
Term Loan Commitment on the Closing Date if the following conditions are satisfied or waived in writing:

 

    22

     

    

 

3.1.1       
 Execution of this Agreement. The Borrower and the Lenders and Agent shall each have duly executed
and delivered this Agreement.

 

3.1.2       
Note. The Borrower shall have delivered a duly executed Note to each Lender.

 

3.1.3       
Pledge Agreement. Borrower, the Guarantors and Agent shall have duly executed and delivered to the
Lenders the Pledge Agreements.

 

3.1.4       
Security Agreement. Borrower, the Guarantors and Agent shall have duly executed and delivered to the
Lenders the Security Agreement.

 

3.1.5       
Guaranty. Guarantors shall have delivered a duly executed and delivered to Agent and the Lenders the
Guaranty.

 

3.1.6       
Mortgage. The Lenders are satisfied that the Mortgages will be duly recorded as a duly perfected first
priority lien against the Mortgaged Property, [REDACTED – COMMERCIALLY SENSITIVE].

 

3.1.7       
No Default. There shall not exist a Default or Event of Default.

 

3.1.8       
Evidence of Insurance. The Lenders shall have received a certificate from the Borrower’s insurance
broker or other evidence satisfactory to it that all insurance required to be maintained pursuant to the Loan Documents is in full
force and effect, together with endorsements naming Agent, for the benefit of the Lenders, as additional insured, lenders’
loss payee and mortgagee thereunder to the extent required under the Loan Documents.

 

3.1.9       
Refinancing of Existing Debt. After giving effect to the funding of the Term Loan, no Loan Party shall
have any Debt other than Debt permitted pursuant to Section 6.3.

 

3.1.10   
Subordination Agreement. All Intercompany Debt existing as of the date hereof shall be subordinated
to the payment of the Term Loan pursuant to subordination agreements between the respective parties to the Intercompany Debt and
Agent on behalf of the Lenders substantially in the form of Exhibit G hereto. Notwithstanding anything to the contrary herein,
if such Subordination Agreements are not executed and delivered on or prior to the Closing Date, they shall be executed and delivered
within thirty (30) days following the Closing Date.

 

3.1.11   
No Litigation. There shall not exist any order, injunction or decree of any Governmental Authority
restraining or prohibiting the funding of the Term Loans;

 

3.1.12   
Expenses. Agent and the Lenders shall have received payment for all fees and expenses required to be
paid on the Closing Date pursuant to any Loan Document, including, in the case of Agent, the fees of its counsel, Stroock &
Stroock & Levan LLP

 

3.1.13    Other
Items. Agent and the Lenders shall have received the other agreements, documents, instruments and other items
set forth on the closing checklist attached hereto as Exhibit D, except those items marked on Exhibit D to be delivered
post-Closing. The Borrower shall deliver the post-Closing items by November 15, 2020, except as otherwise provided in Section
3.1.15. The Borrower shall cause the Mortgages to be recorded immediately following the Closing [REDACTED –
COMMERCIALLY SENSITIVE].

 

    23

     

    

 

3.1.14   
Canopy Waivers. Canopy shall have waived the following restrictions as applied to this Agreement
and the other Loan Documents: the restrictions contained in (i) Section 4.1(3)(k)(v) of the Canopy Arrangement agreement with respect
to entering into a Contract for Company Debt with a principal amount of more than $10,000,000 or a Cost of Capital greater than
30.0% per annum; and (ii) Section 4.1(3)(k)(iii) of the Canopy Arrangement Agreement with respect to a ‎prepayment fee greater
than 3.0% of the ‎principal amount ‎to be repaid.

 

3.1.15             
Trademark License. Acreage IP Holdings LLC, a Nevada limited liability company (“Acreage
IP”), and its Affiliates, as applicable, shall execute and deliver an irrevocable (subject to the terms below) license
to Agent for the benefit of the Lenders to use, from and after the exercise of remedies following an Event of Default, the Trademarks
owned by Acreage IP and such Affiliates (and expressly excluding any Trademarks owned by Canopy and its Subsidiaries) and used
in connection with the retail sale of products in the Core States, which license shall be non-exclusive (the “License
Agreement”). The License Agreement shall provide that, notwithstanding such non-exclusivity, the licensor shall not grant
to third parties a license to use the Trademarks in a Core State during the “term” of the License Agreement for such
Core State. For a Core State, the “term” of the License Agreement shall be the period commencing on the exercise of
remedies following an Event of Default with respect to the Collateral used in such Core State and ending on the fifth anniversary
of the date Agent or its nominee, on behalf of the Lenders, or a third-party, obtains title to the Collateral used in such Core
State as a result of such exercise (such fifth anniversary date for a Core State being its “Termination Date”).
The restriction contained in the second sentence of this paragraph shall not apply in a Core State prior to the commencement of
the “term” applicable to such Core State. The License Agreement will expressly state that it will terminate upon satisfaction
of the Obligations by the Borrower, whether the Obligations are satisfied prior to an Event of Default or after an Event of Default.
If the Obligations are not satisfied and Agent exercises remedies following an Event of Default, then the License Agreement will
terminate with respect to a Core State on its Termination Date. The License Agreement will also provide that the licensee’s
right to use the Trademarks is limited to those Loan Parties and/or their Collateral with respect to which Agent and the Lenders
exercise remedies following an Event of Default. The License Agreement shall be reasonably acceptable to the Borrower and the Lenders.
Notwithstanding anything to the contrary herein, if the License Agreement is not executed and delivered on or prior to the Closing
Date, it shall be executed and delivered within thirty (30) days following the Closing Date.

 

3.1.16   
Notice of Borrowing. The Borrower shall have submitted a Notice of Borrowing to Agent.

 

3.1.17   
Agent Fee Letter. The Borrower and Agent shall have executed and delivered the Agent Fee Letter.

 

3.2              Original
Issue Discount. The Term Loan to be advanced by the Lenders shall be made to the Borrower at an original issue
discount of, (i) in the case of the amount of the Term Loan advanced on the Closing Date 3.00% of the Term Loan Amount
 ‎‎(for greater certainty, being $600,000 if the Term Loan Amount is $20,000,000), and (ii) in the case of the
Initial Increase and the Additional Increase, such amount as shall be agreed to between the Borrower and the Persons funding
the Initial Increase and the Additional Increase, as the case may be, as set forth in Section 2.7.1 and Section 2.7.2, which
original issue discount shall not be credited ‎against the interest payable pursuant to Section 2.4 but shall
constitute ‎additional interest paid in advance. Such additional interest represents an annual interest rate for
 ‎the purposes of applicable Law on the Term Loan in an amount equal to the original issue discount divided by the
 ‎number of days from the Closing Date, in the case of the Term Loan Amount, and from the applicable date of funding, in
the case of the Initial Increase and the Additional Increase, to the Maturity Date, multiplied by 365
 ‎‎(“Original Issue Discount”). ‎

 

    24

     

    

 

Article
4

REPRESENTATIONS AND WARRANTIES

 

In order to induce
the Lenders to enter into this Agreement and to make the Term Loan contemplated by this Agreement, the Borrower hereby makes the
following representations and warranties:

 

4.1             
Status. Each of the Loan Parties is a corporation or limited liability company duly incorporated, organized
and validly existing under the laws of its jurisdiction of incorporation. Each of the Loan Parties is qualified, licensed or registered
to carry on business under the laws applicable to it in all jurisdictions in which such qualification, licensing or registration
is necessary or where failure to be so qualified would have a Material Adverse Effect.

 

4.2             
Power and Authority; Enforceability. Each of the Loan Parties has all requisite corporate power and
authority to (i) own, lease and operate its properties and assets and to carry on its business as now being conducted by it, and
(ii) enter into and perform its obligations under the Loan Documents to which it is a party.

 

4.3             
Conflict with Other Instruments. The execution and delivery by each of the Loan Parties and the performance
by each of them of their respective obligations under, and compliance with the terms, conditions and provisions of, the Loan Documents
to which they are a party will not conflict with or result in a breach of any of the terms or conditions of (i) their respective
Organizational Documents, (ii) any applicable Law in any material respect, or (iii) any material contractual restriction binding
on or affecting them or their respective assets.

 

4.4             
Corporate Action, Governmental Approvals, etc. The execution and delivery of each of the Loan Documents
by each of the Loan Parties, in each case, to the extent a party thereto and the performance by each of the Loan Parties of their
respective obligations under the Loan Documents, in each case, to the extent a party thereto have been duly authorized by all necessary
corporate or other action. No authorization, consent, approval, registration, qualification, designation, declaration or filing
with any Governmental Authority or other Person, is or was necessary in connection with the execution, delivery and performance
of obligations under the Loan Documents except as are in full force and effect, unamended, at the date of this Agreement and except
in connection with any required regulatory approval.

 

4.5              Execution
and Binding Obligation. This Agreement and the other Loan Documents have been duly executed and delivered by each of
the Loan Parties, in each case, to the extent a party thereto and constitute legal, valid and binding obligations of such
Loan Party enforceable against them in accordance with their respective terms, subject only to any limitation under
applicable Laws relating to (i) bankruptcy, insolvency, arrangement or creditors’ rights generally, and
(ii) the discretion that a court may exercise in the granting of equitable remedies.

 

    25

     

    

 

4.6             
Authorizations, etc. Each of the Loan Parties possesses all authorizations, permits, consents, registrations
and approvals necessary to properly conduct their respective businesses, to enter into the Loan Documents, or encumber the Collateral
pursuant to the Security Documents, or to consummate the transactions contemplated herein, and all such authorizations, permits,
consents, registrations and approvals are in good standing and in full force and effect, except where the failure to possess or
maintain in good standing and in full force and effect such authorizations, permits, consents, registrations or approvals, individually
or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

4.7             
Compliance with Laws. Each of the Loan Parties is in compliance with all applicable Laws except where
the failure to be in compliance, individually or in the aggregate, would not reasonably be expected to have a Material Adverse
Effect. The Loan Documents and the transactions contemplated thereby are in compliance with all securities related Laws applicable
to the Borrower.

 

4.8             
No Default Under Organization Documents. No Loan Party is in violation of its Organizational Documents
if such violation would reasonably be expected to have a Material Adverse Effect.

 

4.9             
Books and Records. All books and records of each of the Loan Parties have been fully, properly and
accurately kept and completed in accordance with GAAP, where applicable, and there are no material inaccuracies or discrepancies
of any kind contained or reflected therein. The books and records and other data and information of the Loan Parties are available
to the Lenders in the ordinary course of their respective businesses.

 

4.10         
Tax Liability. Each of the Loan Parties has filed all Tax and information returns which are required
to be filed. Each of the Loan Parties has paid all Taxes which have become due pursuant to such returns or pursuant to any assessment
received by any of them other than those in respect of which liability based on such returns or assessments is being contested
in good faith and by appropriate proceedings where adequate reserves have been established in accordance with GAAP, and all Taxes
that any Governmental Authority is currently entitled to collect in respect of such contest, if any, have been paid. Adequate provision
for payment has been made for Taxes not yet due. There are no disputes with respect to Taxes existing or pending involving any
of the Loan Parties or their respective businesses which would reasonably be expected to have a Material Adverse Effect.

 

4.11         
Solvency. The Loan Parties taken as a whole are Solvent and will be Solvent after giving effect to
the disbursement of the proceeds of the Term Loan.

 

4.12          Litigation.
Other than as set forth in Schedule 4.12, there is no action, suit, arbitration or proceeding pending, taken or to the
Borrower’s knowledge, threatened in writing before or by any Governmental Authority or arbitrator or by or against any
elected or appointed public official or private person in Canada or elsewhere, which (i) challenges, or to the knowledge
of the Borrower, has been proposed which may challenge, the validity or propriety of the transactions contemplated under the
Loan Documents or the documents, instruments and agreements executed or delivered in connection therewith or related thereto,
or (ii) would reasonably be expected to have a Material Adverse Effect.

 

    26

     

    

 

4.13         
No Default. No Default or Event of Default has occurred and is continuing or would reasonably be expected
to arise immediately after giving effect to or as a result of the Term Loan pursuant to this Agreement.

 

4.14         
ERISA Compliance.

 

4.14.1   
As of the Closing Date, there are no all Title IV Plans or Multiemployer Plans. Except for those that would not,
in the aggregate, reasonably be expected to have a Material Adverse Effect, (i) each Benefit Plan, and each trust thereunder, intended
to qualify for tax exempt status under Section 401 or 501 of the Code or other applicable Law so qualifies, (ii) each Benefit Plan
is in compliance with applicable provisions of ERISA, the Code and other applicable Law, (iii) there are no existing or pending
(or to the knowledge of the Borrower, threatened) claims (other than routine claims for benefits in the normal course), sanctions,
actions, lawsuits or other proceedings or investigation involving any Benefit Plan to which a Loan Party incurs or otherwise has
or could reasonably be expected to have an obligation or any Liability and (iv) no ERISA Event has occurred or is reasonably expected
to occur. On the Closing Date, no ERISA Event has occurred in connection with which material obligations or material Liabilities
of a Loan Party remain outstanding.

 

4.14.2   
None of the Loan Parties has a Benefit Plan, and none of the assets of the Loan Parties are or will become “plan
assets” of any Benefit Plan or any plan (within the meaning of Section 4975 of the Code) which is subject to Section 4975
of the Code within the meaning of 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA. None of the Loan Parties
is subject to non-U.S. or state statutes regulating investments and fiduciary obligations with respect to Benefit Plans or governmental
plans. Neither the execution of this Agreement nor the making of advance hereunder gives rise to a prohibited transaction within
the meaning of Section 406 of ERISA or Section 4975 of the Code. None of the Loan Parties is subject to any law, rule
or regulation which is substantially similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975
of the Code.

 

4.15         
Use of Proceeds; Margin Regulations.
The proceeds of the Term Loan are intended to be and shall be used solely for the purposes set forth in and permitted by Sections
2.5 and 2.7, as applicable. No Loan Party is engaged in the business of purchasing or selling Margin Stock or extending credit
for the purpose of purchasing or carrying Margin Stock. As of the Closing Date, except as set forth on Schedule 4.15, no
Loan Party owns any Margin Stock.

 

4.16         
Regulated Entities. None of any Loan
Parties, or any Subsidiary of any Loan Party, is (a) an “investment company” within the meaning of the Investment Company
Act of 1940 or (b) subject to regulation under the Federal Power Act, the Interstate Commerce Act, any state public utilities code,
or any other federal or state statute, rule or regulation limiting its ability to incur Debt, pledge its assets or perform its
obligations under the Loan Documents to which it is a party.

 

    27

     

    

 

4.17         
 Labor Relations. There are no strikes,
work stoppages, slowdowns or lockouts existing, pending (or, to the knowledge of any Loan Party, threatened) against or involving
any Loan Party, except for those that would not, in the aggregate, reasonably be expected to have a Material Adverse Effect. Except
as set forth on Schedule 4.17, as of the Closing Date, (a) there is no collective bargaining or similar agreement with any
union, labor organization, works council or similar representative covering any employee of any Loan Party, (b) no petition for
certification or election of any such representative is existing or pending with respect to any employee of any Loan Party and
(c) no such representative has sought certification or recognition with respect to any employee of any Loan Party.

 

4.18         
Intellectual Property. Each Loan Party
owns, or is licensed to use, all Intellectual Property that is material to its business as currently conducted. To the knowledge
of the Borrower, (a) the conduct and operations of the businesses of each Loan Party does not infringe, misappropriate, dilute
or violate any Intellectual Property owned by any other Person and (b) no other Person has contested any right, title or interest
of any Loan Party in, or relating to, any Intellectual Property, other than any Intellectual Property that is not material to its
business as currently conducted.

 

4.19         
Brokers’ Fees; Transaction Fees.
Except as disclosed on Schedule 4.19 and except for fees payable to Lender, none of Loan Parties has any obligation to any
Person in respect of any finder’s, broker’s or investment banker’s fee in connection with the transactions contemplated
hereby.

 

4.20         
Jurisdiction of Organization; Chief Executive Office.
Schedule 4.20 lists each Loan Party’s jurisdiction of organization, legal name and organizational identification number,
if any, and the location of such Loan Party’s chief executive office or sole place of business, in each case as of the date
hereof, and such Schedule 4.20 also lists all jurisdictions of organization and legal names of such Loan Party for the five
years preceding the Closing Date. The organizational chart included in Schedule 4.20 accurately reflects the ownership structure
of the Loan Parties.

 

4.21          Anti-Terrorism,
Anti-Corruption Laws. None of the Loan Parties is a Sanctioned Person or is in violation of any Anti-Terrorism Law or
Sanction, or deals in property or interests in property, or otherwise engages in any transaction, prohibited by any
Anti-Terrorism Law or Sanction. None of the proceeds of the Term Loan (i) will be used by, on behalf of, or for the benefit
of, any Person other than any Loan Party or any Subsidiary thereof, (ii) will be used, directly or indirectly, for any
payments to any governmental official or employee, political party, official of a political party, candidate for political
office, official of any public international organization, or anyone else acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in violation of the Corruption of Foreign Public Officials Act (Canada),
or any similar laws, rules or regulations issued, administered or enforced by any Governmental Authority having jurisdiction
over any Loan Party, or (iii) will be used in a manner that would result in a violation of any Sanctions, section 462.31(1)
of the Criminal Code and/or any applicable Law. None of the Obligations and none of the other amounts payable under this
Agreement will be paid by any of the Loan Parties with any property or proceeds of any property that was obtained or derived
directly or indirectly as a result of an act or omission anywhere that, if it had occurred in Canada, would have constituted
a designated offence (as defined in section 462.31(1) of the Criminal Code). Each of
the Loan Parties has taken measures appropriate to the circumstances (in any event as required by applicable Law) to ensure
that each of the Loan Parties is and will continue to be in compliance with such applicable anti-corruption laws, rules and
regulations and Anti-Terrorism Laws.

 

    28

     

    

 

4.22         
Cannabis Licenses. As of the Closing Date, the Cannabis Licenses are valid, current, and in compliance
with all Laws and Borrower has delivered true and correct copies of each Cannabis License to the Lenders. As of the Closing Date,
no Loan Party has received written notice from any Governmental Authority suspending, revoking or terminating a Cannabis License,
threatening to suspend, revoke or terminate a Cannabis License, or seeking to investigate any possible non-compliance with respect
to a Cannabis License. No Loan Party has applied for or is currently seeking approval of any new Cannabis License other than the
Cannabis Licenses set forth on Schedule III; provided that, with respect to a suspension or threat of suspension of a Cannabis
License, the foregoing representation applies only to a suspension or threat thereof that the Parent is required to report in a
public filing to the Securities and Exchange Commission or the Ontario Securities Commission.

 

4.23         
Collateral. All Property located in the Core States is owned by a Core Entity. There is no Property
located in a Core State that is not owned by a Core Entity. Schedule 4.23(A) lists all of the real property owned, leased, subleased
or otherwise operated or occupied by any Loan Party as of the Closing Date, including all Mortgaged Property (the “Real
Estate”). Each applicable Loan Party has good record title or valid leasehold interests in the Real Estate and personal
property and valid leasehold interests in all leased personal property, in each instance, necessary or used in the ordinary conduct
of their respective businesses. Except as set forth on Schedule 4.23(B), no party other than the Loan Parties have any interest
in, nor any option, right of first refusal or right of first offer in connection with any interest in any of the Material Property.
None of the Property of any Loan Party is subject to any Liens other than (a) Permitted Liens and (b) that certain Lien encumbering
the Cannabis License held by Prime Wellness of Pennsylvania, LLC (Permit No. GP-1005-17) (“Pennsylvania Lien”).

 

4.24         
Material Contracts. As of the Closing Date, Schedule 4.24 lists all Material Contracts. Each Material
Contract is in full force and effect and has not been modified, supplemented, or amended except as set forth on Schedule 4.24,
and no Loan Party has received written notice of termination of any Material Contract. No default has occurred and is continuing
or would reasonably be expected to arise under any Material Contract. Borrower has delivered true and correct copies of all Material
Contracts to Lender. None of the Material Contracts is subject to any Liens other than Permitted Liens.

 

4.25         
Financial Condition. (a) Each of (i) the audited consolidated balance sheet of the Loan Parties dated
December 31, 2019, and the related audited consolidated statements of income or operations, shareholders’ equity and cash
flows for the fiscal year ended on that date and (ii) the unaudited interim consolidated balance sheet of the Parent dated June
30, 2020 and the related unaudited consolidated statements of income, and cash flows for the three fiscal months then ended:

 

(x)       were
prepared in accordance with GAAP consistently applied throughout the respective periods covered thereby; and

 

    29

     

    

 

(y)       present
fairly in all material respects the consolidated financial condition of the Parent as of the dates thereof and results of operations
for the periods covered thereby.

 

(b)       Since
June 30, 2020, there has been no Material Adverse Effect or any event or circumstance which would reasonably be expected to result
in a Material Adverse Effect.

 

(c)       All
financial performance projections delivered to the Lenders, including the financial performance projections delivered on or prior
to the Closing Date, represent the Borrower’s good faith estimate of future financial performance and are based on assumptions
believed by the Borrower to be fair and reasonable in light of current market conditions, it being acknowledged and agreed by Lenders
that projections are not to be viewed as facts and that the actual results during the period or periods covered by such projections
may differ from the projected results and such differences may be material.

 

4.26         
Environmental Matters. Except as specifically disclosed in Schedule 4.26 and except as would
not reasonably be expected to result in, either individually or in the aggregate, a Material Adverse Effect, each Loan Party (a)
is and has been in compliance with all applicable Environmental Laws, including all requirements relating to underground storage
tanks and the use, presence, storage and transport of Hazardous Material; (b) has obtained and maintain in full force and effect
all Permits required by any Governmental Authority or applicable Environmental Law for the occupancy of the Real Estate and the
operation of the business as currently conducted, (c) is not party to, and no Real Estate currently (or to the knowledge of the
Borrower) owned, leased, subleased, operated or otherwise occupied by or for any such Person is subject to or the subject of, any
contractual obligation or any pending or, to the knowledge of the Borrower, threatened, order, decree, action, investigation, suit,
proceeding, audit, Lien, claim, demand, dispute or notice of violation or of potential liability or similar notice relating in
any manner to any Environmental Law that has not been fully and finally
remedied (or remediated) in compliance with all Environmental Laws and to the satisfaction of applicable Governmental Authorities,
(d) is not subject to any order by any Governmental Authority or requirement of Environmental Law to investigate, remediate or
otherwise address any Release of any Hazardous Material at, on or from any Real Estate; (e) has not caused or suffered to occur,
and has no knowledge of, a Release of Hazardous Materials that has not
been remedied (or remediated) in compliance with all Environmental Laws and to the satisfaction of applicable Governmental Authorities
at, on or from any Real Estate or for which any Loan Party is liable; (f) does
not currently own, lease, sublease, operate or otherwise occupy (or to the knowledge the Borrower, has not previously owned, leased,
subleased, operated or otherwise occupied real property that is contaminated by any Hazardous Material that has not been remedied
(or remediated) in compliance with all Environmental Laws and to the satisfaction of applicable Governmental Authorities;
(g) is not, and has not been, engaged in, and has not permitted any current or former tenant to engage in, operations in violation
of any Environmental Law and knows of no facts, circumstances or conditions reasonably constituting notice of a violation of any
Environmental Law, including receipt of any written information request or notice of potential responsibility under the Comprehensive
Environmental Response, Compensation and Liability Act, the Resource Conservation and Recovery Act or similar Environmental Laws;
and (h) has made available to Lenders and their agents copies of all material reports, investigations, laboratory results, audits,
and communications with Governmental Authorities regarding environmental matters, including those relating to the storage, presence
or Release of Hazardous Material, with respect to the Real Estate.

 

    30

     

    

 

4.27         
 Liens. Schedule 4.27 lists all Liens securing Debt outstanding on the Closing Date and encumbering
any Property of the Loan Parties.

 

4.28         
Third-Party Debt. Schedule 4.28 sets forth all Debt held by third-parties and outstanding on the Closing
Date. No Loan Party is in default under any such Debt.

 

4.29         
Intercompany Debt. Schedule 4.29 sets forth all Debt held by one or more of the Loan Parties (“Intercompany
Debt”). No Loan Party is in default under any Intercompany Debt. The Intercompany Debt is unsecured.

 

Article
5

AFFIRMATIVE COVENANTS

 

The Borrower covenants and agrees that until
the Maturity Date:

 

5.1             
Financial Statements. The Borrower shall maintain, and shall cause each other Loan Party to maintain,
a system of accounting established and administered in accordance with sound business practices to permit the preparation of financial
statements in conformity with GAAP (provided that unaudited interim financial statements shall not be required to have footnote
disclosures and are subject to normal year-end adjustments). Borrower shall deliver to the Lenders by electronic transmission and
in detail reasonably satisfactory to the Lenders, promptly after the same are filed or submitted, any financial statements or regular,
periodic or special reports which the Parent files with or submits to, the Securities and Exchange Commission or any successor
or similar Governmental Authority, and in addition the Borrower shall deliver the following to Agent:

 

5.1.1       
concurrently with the delivery of the financial statements or reports referred to in Section 5.1, a duly completed
Compliance Certificate executed by a Responsible Officer of the Borrower, and such Compliance Certificate shall include calculations
demonstrating compliance with the financial covenants set forth in Article 7;

 

5.1.2       
promptly upon receipt thereof, copies of any reports submitted by Borrower’s certified public accountants in
connection with each annual, interim or special audit or review of any type of the financial statements or internal control systems
of the Parent made by such accountants; and

 

5.1.3       
promptly, such additional business, financial, corporate affairs, perfection certificates and other information as
any Lender may from time to time reasonably request;

 

5.2             
Notices. Borrower shall notify promptly the Lenders of each of the following (and in no event later
than five (5) Business Days after a Responsible Officer becomes aware thereof):

 

5.2.1       
the occurrence or existence of any Default or Event of Default;

 

5.2.2        any
dispute, litigation, investigation, proceeding or suspension which may exist at any time between any Loan Party and any
Governmental Authority which would reasonably be expected to result, either individually or in the aggregate, in a Material
Adverse Effect, including any notice from a Governmental Entity threatening to revoke, suspend or terminate a Cannabis
License, or revoking, suspending or terminating a Cannabis License, or seeking to investigate any possible non-compliance
with a Cannabis License, and the steps, if any, such Person has taken, is taking or proposes to take in respect of any such
suspension, revocation, termination or threat thereof or any such non-compliance; provided that, with respect to a suspension
or threat of suspension of a Cannabis License, the foregoing notice requirement applies only to a suspension or threat
thereof that the Parent is required to report in a public filing to the Securities and Exchange Commission or the Ontario
Securities Commission;

 

    31

     

    

 

5.2.3       
(x) the occurrence or existence of any breach, violation or non-performance of, or any default under, the expiration
or termination of, or any non-compliance with, any Material Contract, or (y) the occurrence or existence of any breach, violation
of, or any non-compliance with, any Law that, in each case under clause (x) or (y) above, would reasonably be expected to result,
either individually or in the aggregate, in a Material Adverse Effect, and including a description of such breach, non-performance,
default, expiration, termination violation or non-compliance and the steps, if any, such Person has taken, is taking or proposes
to take in respect thereof;

 

5.2.4       
the commencement of any litigation or proceeding, or any material development in any litigation or proceeding, affecting
any Loan Party or its respective property (i) which would reasonably be expected to have a Material Adverse Effect, or (ii)
in which the relief sought is an injunction or other stay of the performance of this Agreement or any other Loan Document;

 

5.2.5       
(i) (A) the occurrence of an unpermitted Release, (B) any written notice of violation of, or the existence of any
condition that would reasonably be expected to result in violations of or liability under, any Environmental Law or (C) the commencement
of, or any material change to, any action, investigation, suit, proceeding, audit, claim, demand, dispute alleging a violation
of or liability under any Environmental Law which in the case of clauses (A), (B) and (C) above, in the aggregate for all such
clauses, would reasonably be expected to result in a Material Adverse Effect, or (ii) any written requirement by any Governmental
Authority or under any Environmental Law to investigate, remediate or otherwise address any actual or threatened Release of Hazardous
Material at, on, or from any Real Estate;

 

5.2.6       
(i) on or prior to any filing by any Loan Party, or promptly upon Borrower obtaining knowledge of the filing by any
ERISA Affiliate, of any notice of any reportable event under Section 4043 of ERISA or intent to terminate any Title IV Plan, a
copy of such notice, (ii) promptly, and in any event within ten (10) days, after any officer of any Loan Party knows or has reason
to know that a request for a minimum funding waiver under Section 412 of the Code has been filed with respect to any Title
IV Plan or Multiemployer Plan, a notice describing such waiver request and any action that any ERISA Affiliate proposes to take
with respect thereto, together with a copy of any notice filed with the PBGC or the IRS pertaining thereto, and (iii) promptly,
and in any event within ten (10) days after any officer of any Loan Party knows or has reason to know that an ERISA Event will
or has occurred, a notice describing such ERISA Event, and any action that any ERISA Affiliate proposes to take with respect thereto,
together with a copy of any notices received from or filed with the PBGC, IRS, Multiemployer Plan or other Benefit Plan pertaining
thereto;

 

    32

     

    

 

5.2.7       
 any Material Adverse Effect subsequent to the date of the most recent audited financial statements delivered to
the Lenders pursuant to this Agreement;

 

5.2.8       
any material change in accounting policies or financial reporting practices by the Parent; and

 

5.2.9       
the occurrence of (i) any Disposition of Non-Core Entities or the assets thereof, (ii) any Permitted Refinancing,
(iii) any Acquisition or Investment, and (iv) any Merger involving a Loan Party.

 

5.3             
Preservation of Corporate Existence. Borrower shall, and shall cause each other Loan Party to:

 

5.3.1       
preserve and maintain in full force and effect its organizational existence and good standing under the laws of its
jurisdiction of incorporation, organization or formation, as applicable, except as permitted by the terms of this Agreement; and

 

5.3.2       
preserve and maintain its rights (charter and statutory), privileges, franchises and Permits necessary or desirable
in the normal conduct of its business except as permitted by the terms of this Agreement.

 

5.4             
Maintenance of Property, Cannabis Licenses. Except as otherwise permitted by this Agreement, Borrower
shall (and shall cause each other Loan Party to), maintain and preserve all its Property which is used or useful in its business
(including, but not limited to, the Material Property) in good working order and condition, ordinary wear and tear excepted and
shall make all necessary repairs thereto and renewals and replacements thereof except where the failure to do so would not reasonably
be expected to have, either individually or in the aggregate, a Material Adverse Effect. Until the Maturity Date, Borrower shall
cause the Loan Parties to maintain the Cannabis Licenses in compliance in all material respects with all Laws and free from Liens,
to renew any Cannabis License before its expiration date, and to otherwise take all actions reasonably required to maintain the
Cannabis Licenses in good standing.

 

5.5             
Payment of Tax Obligations. Borrower shall (and shall cause each other Loan Party to) pay, discharge
and perform as the same shall become due and payable or required to be performed all Tax liabilities, assessments and governmental
charges or levies upon it or its Property, unless the same are being contested in good faith by appropriate proceedings diligently
prosecuted which stay the enforcement of any Lien and for which adequate reserves in accordance with GAAP are being maintained
by such Person.

 

5.6             
Prompt Payment. The Borrower will pay or cause to be paid all Obligations and other amounts payable
under the Loan Documents punctually when due.

 

5.7             
Permitted Uses. The Borrower shall use the proceeds of the Term Loan hereunder only for the purposes
permitted pursuant to Section 2.5 or 2.7, as applicable.

 

5.8             
Compliance with Applicable Laws, etc. Borrower shall, and shall cause each other Loan Party to, comply
with the requirements of all applicable Laws except where non-compliance with any such requirement of applicable Law would not
reasonably be expected to have a Material Adverse Effect.

 

    33

     

    

 

5.9             
Payment of Taxes and Claims. The Borrower shall pay or cause to be paid, when due, (i) all Taxes imposed
upon it or upon its income, sales, capital or profit or any other assets belonging to it before the same becomes delinquent or
in default, and (ii) all claims which, if unpaid, would by applicable Law become a Lien upon the assets of any of Loan Party, except
any such Tax or claim which is being contested in good faith and by proper proceedings and in respect of which such Loan Party
have established adequate reserves in accordance with GAAP or which are Permitted Liens.

 

5.10         
Keeping of Books. Borrower shall (and shall cause each other Loan Party to), during normal business
hours and upon reasonable advance notice (unless an Event of Default shall have occurred and be continuing, in which event no notice
shall be required and any Lender shall have access at any and all times during the continuance thereof): (a) provide access to
such Real Estate to any Lender and any of its Related Persons, as frequently as such Lender determines to be appropriate; and (b)
permit any Lender and any of its Related Persons to inspect, and make extracts and copies from, all of such Loan Party’s
books and records, in each instance, at the Borrower’s expense; provided the Borrower shall only be obligated to reimburse
a Lender for the expenses of one such inspection by such Lender per calendar year or more frequently if an Event of Default has
occurred and is continuing.

 

5.11         
Anti-Terrorism Laws. Borrower shall (and shall cause each other Loan Party to) promptly provide all
information with respect to the Loan Parties, their respective directors, authorized signing officers, direct or indirect shareholders
or other persons in control of the Loan Parties, including supporting documentation and other evidence, as may be reasonably requested
by a Lender, or any prospective assignee of a Lender, in order to comply with any applicable Anti-Terrorism Laws or such other
applicable “know your client” laws and requirements, whether now or hereafter existence.

 

5.12         
Non-Core Entities. If any Non-Core Entity (or the assets thereof) is not subject to a Disposition within
270 days of the Closing Date, then the Borrower shall, and shall cause the other applicable Loan Parties to, take such additional
actions and execute such documents as Lender may reasonably require in order to subject the Stock in such Non-Core Entity and the
assets of each such Non-Core Entity to the Liens created by the Security Documents and to perfect and maintain the validity, effectiveness
and (to the extent required) priority of the Lien created by the Security Documents in such Non-Core Entities.

 

5.13         
IL Grow Facility. [REDACTED COMMERCIALLY SENSITIVE].
Notwithstanding anything to the contrary in the foregoing, upon completion of the buildout/expansion of the Illinois Facility,
Borrower (or the applicable Loan Party) shall have the right to sell the Illinois Facility to a third-party on market terms and
lease back the Illinois Facility from such third-party on market terms (the “Illinois Facility Sale-Leaseback”),
whereupon the Mortgage on the Illinois Facility shall be released, so long as the Net Cash Proceeds from such sale are applied
by such Loan Party to the Primary Business.

 

    34

     

    

 

5.14         
 Material Contracts. Borrower shall, and shall cause each other Loan Party to, comply in all material
respects with the terms and provisions of each Material Contract, and shall cause such Material Contracts to be keep in full force
and effect except for any termination or assignment made in connection with a Disposition permitted under Section 6.2. Borrower
shall renew, or cause the applicable Loan Party to renew, each Material Contract prior to the expiration thereof, which renewal
shall be at terms no less favorable to Borrower or the Loan Party than the terms in effect prior to such renewal.

 

5.15         
 Insurance. The Borrower shall, and shall cause each other Loan Party to, maintain with financially
sound and reputable insurance companies insurance with respect to their assets, properties and business, against such hazards and
liabilities, of such types and in such amounts, as is customarily maintained by companies in the same or similar businesses similarly
situated. Each such policy of insurance shall (i) in the case of each liability policy, name Agent on behalf of the Lenders as
an additional insured thereunder as its interests may appear and (ii) in the case of each casualty insurance policy contain a lender’s
loss payable or mortgagee clause or endorsement that names Agent, on behalf of the Lenders, as the lender’s loss payee or
mortgagee thereunder with respect to the Collateral and, to the extent reasonably available, provide for at least thirty (30) days’
prior written notice to Agent of any cancellation of such policy (or ten (10) days’ prior written notice in the case of the
failure to pay any premiums thereunder). A true and complete listing of such insurance, including issuers, coverages and deductibles,
shall be provided to Agent promptly following Agent’s request.

 

5.16         
Pennsylvania Lien: The Borrower shall cause the Pennsylvania Lien to be removed upon satisfaction of
the loan being secured by such lien.

 

5.17         
Further Assurances.

 

5.17.1   
At its cost and expense, upon the reasonable request of the Lenders, the Borrower shall, and shall cause each other
Loan Party to, execute and deliver or cause to be executed and delivered to the Lenders such further instruments and do and cause
to be done such further acts as may be necessary or proper in the reasonable opinion of the Lenders to carry out more effectually
the provisions and purposes of the Loan Documents.

 

5.17.2   
The Borrower shall ensure that all written information, exhibits and reports furnished to the Lenders, when taken
as a whole, do not and will not contain any untrue statement of a material fact and do not and will not omit to state any material
fact or any fact necessary to make the statements contained therein not materially misleading in light of the circumstances in
which made, and will promptly disclose to the Lenders and correct any material defect or error that may be discovered therein or
in any Loan Document or in the execution, acknowledgement or recordation thereof.

 

5.17.3   
Concurrently with the consummation of a Merger, an Acquisition or an Investment, the Borrower shall (and shall cause
the applicable Loan Party to) subject any of the properties, rights or interests acquired by the Borrower or the applicable Loan
Party in connection with such Merger, Acquisition or Investment to the Liens created by any of the Security Documents and to perfect
such Liens.

 

    35

     

    

 

 

5.17.4   
 Promptly upon request by the Lenders, the Borrower shall (and shall cause the other Loan Parties to): (ii) to perfect
and maintain the validity, effectiveness and priority of any of the Security Documents and the Liens intended to be created thereby,
and (ii) to better assure, grant, preserve, protect and confirm to the Lenders the rights granted or now or hereafter intended
to be granted to Agent for the benefit of the Lenders under any Loan Document.

 

5.17.5   
If a Cannabis License is issued by a Core State to an Affiliate of a Loan Party, the Borrower shall cause the applicable
Affiliate to subject such Cannabis License to the Liens created by any of the Security Agreement and to perfect such Liens, and
if a Cannabis License issued by a Core State is transferred by a Loan Party to an Affiliate of a Loan Party, the Borrower shall
cause the parent of such Affiliate to subject the equity interests in such Affiliate to the Liens created by the Pledge Agreement.

 

5.18          Cooperation
to Obtain Regulatory Approval. The Borrower shall, and shall cause the applicable Loan Parties to, promptly following the
initial advance of the Term Loan, cooperate in good faith with Agent and the Lenders to seek, diligently pursue and obtain
approvals and registrations from the applicable Governmental Authorities of the States of Connecticut, Illinois, Maine, New
York, Ohio and Pennsylvania (the “Approval Required States”) for the granting of the Liens in favor of
Agent for the benefit of the Lenders on the Cannabis Licenses issued by the Approval Required States and equity interests of
the Loan Parties that hold the Cannabis Licenses (or applicable Management Services Agreements) (collectively, the
 “Cannabis Lien Approvals”). To that end, the Borrower shall, and shall cause the applicable Loan Parties
to, cooperate in good faith with Agent and the Lenders to expeditiously obtain the Cannabis Lien Approvals from each of the
Approval Required States and shall fully cooperate with Agent and Loan Parties with all requests, including taking all
reasonably necessary actions, to obtain the Cannabis Lien Approvals until they are each obtained.  Such actions include,
without limitation, submitting all required registrations or applications and information promptly upon request from the
applicable Governmental Authorities.  Agent and each Lender further acknowledges that they are solely responsible for
providing the personal information applicable to Agent and each Lender that is required to be furnished to applicable
Governmental Authority in each Approval Required State and for completing in whole or in part the required registration
and/or other applicable forms to be submitted thereto, and the cooperation of the Borrower and other Loan Parties shall be
dependent on Agent and each Lender providing such personal information and completing such forms to the extent
applicable.   The obligations of the Borrower set forth above with respect to the Cannabis Lien Approvals shall
also apply to Additional Lenders and to assignees of a Lender under Section 9.13. If any Lender or Additional Lender is
rejected by the applicable Governmental Authority in an Approval Required State, then such Lender or Approved Lender shall be
required to sell its portion of the Term Loan in accordance with Section 9.13 within thirty (30) days following such
rejection. If the failure to obtain a Cannabis Lien Approval results in the applicable Governmental Authority of an Approval
Required State threatening in writing to revoke or terminate the Cannabis License issued by such state, then the grant of the
Lien on such Cannabis License and on the equity interests of the Loan Party that holds such license (and on related regulated
Collateral pertaining to such Loan Party) shall automatically be conditioned upon receipt of such Cannabis Lien Approval.
Additionally, Borrower covenants that it shall, and shall cause the applicable Loan Party to, promptly following the initial
advance of the Term Loan cooperate in good faith with Agent and the Lenders to pursue all approvals, consents or other
available authorizations from or by applicable Governmental Authorities in Core State in which the Borrower and the Loan
Parties operate so that Agent on behalf of Lenders may appoint a receiver and/or foreclose on the Collateral in the event the
Lenders elect to exercise remedies under the Loan Documents following an Event of Default and acceleration of the maturity of
Term Loan (collectively, the “Receiver/Foreclosure Preapprovals”). In the event a Governmental Authority
in a Core State in which the Borrower and the Loan Parties operate does not grant a Receiver/Foreclosure Preapproval or such
granted Receiver/Foreclosure Preapproval is not fully exercisable or in the event a Governmental Authority’s consent or
approval, or registration with, is required for the appointment of a third party manager that exercises control over a
licensed cannabis entity (such as a manager under a Management Services Agreement), the Borrower shall, and shall cause the
Loan Parties to, fully cooperate with Agent and the Lenders to Agent, for the benefit of the Lenders, to obtain all
outstanding or necessary approvals, consents and/or registrations as expeditiously as feasible, of or with the applicable
Governmental Authorities in such Core State in which Borrower and the Loan Parties operate to permit Agent and/or the Lenders
to cause the Cannabis Licenses, the equity interests in the License Entities, and/or the Management Services Agreement to be
transferred to one or more Persons so identified by Agent and/or Lenders and to otherwise take all actions reasonably
necessary to obtain the same.

 

    36 

     

    

 

Article
6

NEGATIVE COVENANTS

 

The Borrower covenants and agrees that until
the Maturity Date:

 

6.1             
Limitations on Liens. No Loan Party shall directly or indirectly make, create, incur, assume or suffer
to exist any Lien upon or with respect to any part of its Property, whether now owned or hereafter acquired, other than the following
(“Permitted Liens”):

 

6.1.1       
any Lien existing on the Property of a Loan Party on the Closing Date and set forth in Schedule 4.27 securing
Debt outstanding on such date, including replacement Liens on the Property currently subject to such Liens securing Debt, excluding
the lien on equity interests of Prime Wellness of PA, LLC;

 

6.1.2       
any Lien created under any Loan Document;

 

6.1.3       
Liens for Taxes (i) which are not past due or remain payable without penalty, or (ii) the non-payment of which
is permitted by Section 5.10;

 

6.1.4       
carriers’, warehousemen’s, mechanics’, landlords’, materialmen’s, repairmen’s
or other similar Liens arising in the ordinary course of business which are not delinquent for more than thirty (30) days or remain
payable without penalty or which are being contested in good faith and by appropriate proceedings diligently prosecuted, which
proceedings have the effect of preventing the forfeiture or sale of the Property subject thereto and for which adequate reserves
in accordance with GAAP are being maintained;

 

6.1.5        Liens
(other than any Lien imposed by ERISA) consisting of pledges or deposits required in the ordinary course of business in
connection with workers’ compensation, unemployment insurance and other social security legislation or to secure the
performance of tenders, statutory obligations, surety, stay, customs and appeals bonds, bids, leases, governmental contract,
trade contracts, performance and return of money bonds and other similar obligations (exclusive of obligations for the
payment of borrowed money) or to secure liability to insurance carriers;

 

    37 

     

    

 

6.1.6       
Liens consisting of judgment or judicial attachment liens (other than for payment of Taxes), provided that
the enforcement of such Liens is stayed and the existence of such judgment does not constitute an Event of Default hereunder;

 

6.1.7       
easements, rights-of-way, zoning and other restrictions, minor defects or other irregularities in title,
and other similar encumbrances incurred in the ordinary course of business which, either individually or in the aggregate, do not
in any case materially detract from the value of the property subject thereto or interfere in any material respect with the ordinary
conduct of the businesses of any Loan Party;

 

6.1.8       
any interest or title of a lessor or sublessor under any lease not prohibited by this Agreement;

 

6.1.9       
Liens arising from the filing of precautionary uniform commercial code financing statements with respect to any lease
not prohibited by this Agreement;

 

6.1.10   
non-exclusive Real Estate licenses and sublicenses granted by a Loan Party and leases and subleases (by a Loan Party
as lessor or sublessor) to third parties in the ordinary course of business not interfering with the business of the Loan Parties
or any of their Subsidiaries;

6.1.11   
Liens in favor of collecting banks arising by operation of law under Section 4-210 of the UCC or, with respect to
collecting banks located in the State of New York, under Section 4-208 of the UCC;

 

6.1.12   
Liens (including the right of set-off) in favor of a bank or other depository institution arising as a matter of
law or contract encumbering deposits;

 

6.1.13   
Liens arising out of consignment or similar arrangements for the sale of goods entered into by any Loan Party in
the ordinary course of business;

 

6.1.14   
Liens in favor of customs and revenue authorities arising as a matter of law which secure payment of customs duties
in connection with the importation of goods in the ordinary course of business;

 

6.1.15   
Liens on unearned insurance premiums securing the financing thereof;

 

6.1.16   
Liens that are contractual rights of set-off (i) relating to pooled deposit or sweep accounts of any Loan Party or
any Subsidiary of any Loan Party to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of
business of the Loan Party or any Subsidiary of any Loan Party or (ii) relating to purchase orders and other agreements entered
into with customers of any Loan Party or any Subsidiary of any Loan Party in the ordinary course of business and consistent with
past practices; and

 

6.1.17   
 any encumbrance or restriction on Stock in any Person that is not a wholly-owned Subsidiary, including any put and
call arrangements, related to Stock in such Person set forth in the organizational documents of such Person or any related joint
venture, shareholders’ or similar agreement.

 

    38 

     

    

 

6.2             
 Disposition of Assets. No Loan Party shall directly or indirectly Dispose of (whether in one or a
series of transactions) any Property (including the Stock of any Loan Party, whether in a public or private offering or otherwise,
and accounts and notes receivable, with or without recourse), except:

 

6.2.1       
Dispositions of inventory, goods or services or of worn-out obsolete, damaged or surplus equipment, all in the
ordinary course of business;

 

6.2.2       
(i) Dispositions of Cash Equivalents in the ordinary course of business made to a Person that is not an Affiliate
of any Loan Party and (ii) conversions of Cash Equivalents into cash or other Cash Equivalents or cash into Cash Equivalents;

 

6.2.3       
transactions permitted under Section 6.1.10;

 

6.2.4       
the sale or issuance of the Stock in any Loan Party to any Loan Party;

 

6.2.5       
the transfer of Property (i) by a Loan Party to a Loan Party or to a Subsidiary of a Loan Party, or (ii) by an Affiliate
that is not a Loan Party to (A) a Loan Party for no more than fair market value or (B) any other Affiliate that is not a Loan Party;

 

6.2.6       
Dispositions of Investments in joint ventures to the extent required by, or made pursuant to, customary buy/sell
arrangements between, the joint venture parties set forth in joint venture arrangements and similar binding arrangements;

 

6.2.7       
transactions permitted by Section 6.3;

 

6.2.8       
Dispositions of past due accounts receivable in the ordinary course of business (including any discount and/or forgiveness
thereof) or, in the case of accounts receivable in default, in connection with the collection or compromise thereof and in any
event, not involving any securitization thereof;

 

6.2.9       
(i) any termination of any lease in the ordinary course of business, (ii) any expiration of any option agreement
in respect of real or personal property and (iii) any surrender or waiver of contractual rights or the settlement, release or surrender
of contractual rights or litigation claims (including in tort) in the ordinary course of business;

 

6.2.10   
Dispositions of property subject to foreclosure, casualty, eminent domain or condemnation proceedings (including
in lieu thereof or any similar proceeding), so long as the Net Cash Proceeds are applied to the Obligations if requested by Lenders;
it being understood that no Prepayment Premium shall be owing or payable in relation to any prepayment under this Section 6.2.10;

 

6.2.11   
Any Dispositions of Non-Core Entities or the assets thereof;

 

    39 

     

    

 

6.2.12   
 leases or subleases of real property entered into in the ordinary course of business, to the extent that they do
not materially interfere with the business of any Loan Party;

 

6.2.13   
any surrender or waiver of contract rights pursuant to a settlement, release,
recovery on or surrender of contract, tort or other claims of any kind (but not otherwise constituting an Event of Default hereunder
or other violation hereof), provided that such surrender or waiver would not reasonably be expected to and does not result in a
Material Adverse Effect; or

 

6.2.14   
the Illinois Facility Sale-Leaseback.

 

Notwithstanding anything to the contrary contained in this Agreement,
the acquisition by Canopy of all or a portion of the shares of the Parent pursuant to the Canopy Arrangement Agreement is not prohibited
by this Agreement.

 

6.3             
Debt. No Loan Party shall directly or indirectly create, incur, assume, permit to exist, or otherwise
become or remain directly or indirectly liable with respect to, any Debt, except:

 

6.3.1       
the Obligations;

 

6.3.2       
Debt existing on the Closing Date and set forth in Schedule 4.28, and any Permitted Refinancing thereof;

 

6.3.3       
Intercompany Debt existing on the Closing Date and set forth in Schedule 4.29;

 

6.3.4       
endorsements for collection or deposit in the ordinary course of business;

 

6.3.5       
Debt arising under indemnity agreements to title insurers to cause such title insurers to issue to Lender title insurance
policies;

 

6.3.6       
Debt incurred in the ordinary course of business with respect to surety and appeals bonds, performance bonds and
other similar obligations; and

 

6.3.7       
Debt owed in respect of any overdrafts and related liabilities arising from
treasury, depositary and cash management services or in connection with any automated clearinghouse transfers of funds.

 

6.4             
Compliance with ERISA. No ERISA Affiliate shall adopt or become obligated to contribute to any Title
IV Plan or any Multiemployer Plan. Borrower shall make, and shall cause all ERISA Affiliates to make, all required contributions
to any Title IV Plan and any Multiemployer Plan. No ERISA Affiliate shall cause or suffer to exist (a) any event that would
result in the imposition of a Lien on any asset of a Loan Party with respect to any Title IV Plan or Multiemployer Plan or (b)
any other ERISA Event, that would, in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

6.5             
Change in Business. No Loan Party shall engage in any line of business substantially different from
those lines of business carried on by it on the Closing Date and any business reasonably complementary or ancillary thereto.

 

    40 

     

    

 

6.6             
 Change in Structure. Except as expressly permitted under Section 6.8, no Loan Party shall amend any
of its Organization Documents in any respect materially adverse to Lender.

 

6.7             
Changes in Accounting, Name and Jurisdiction of Organization. No Loan Party shall (i) make any significant
change in accounting treatment or reporting practices, except as required or permitted by GAAP; (ii) change its name as it appears
in official filings in its jurisdiction of organization or (iii) change its jurisdiction of organization or formation, without,
in the case of clause (i), the consent of Lenders, and in the case of causes (ii) and (iii), at least ten (10) days’ prior
written notice to the Lenders (or such shorter period as may be agreed by the Lenders in their reasonable discretion).

 

6.8             
Mergers, Etc. No Loan Party shall enter into, any reorganization, consolidation, amalgamation, arrangement,
winding-up, merger or other similar transaction (a “Merger”), except any Loan Party may enter into any such
transaction if:

 

(i)            no Default or Event of Default exists or would result from such transaction;

 

(ii)           the Borrower provides reasonable advance notice thereof to the Lenders and at the request of the Lenders the Borrower
provides proforma calculations of the Minimum Liquidity and Consolidated Debt Service Coverage Ratio to show proforma compliance
thereof after giving effect to such Merger;

 

(iii)          in the case of a transaction involving any Parent Guarantor incorporated under the laws of Canada or one of its Provinces
or Territories, the continuing corporation is also a limited liability corporation existing under the laws of Canada or one of
its Provinces or Territories;

 

(iv)          the continuing corporation assumes the relevant Loan Parties’ obligations under the Loan Documents;

 

(v)           in the case of a transaction involving the Borrower, the Guarantor confirms that its guarantee continues to extend
to the Obligations of the Borrower;

 

(vi)          such transaction is on such terms, and carried out in such manner, as to preserve and not to impair, and to have
no adverse effect on, any of the rights and powers of the Lender hereunder and under the other Loan Documents;

 

(vii)         prior to or contemporaneously with the completion of such transaction, the continuing corporation shall have executed
and delivered, or caused to have been executed and delivered, to the Lender such documents (including legal opinions of counsel
to the continuing corporation) as may, in the opinion of the Lender, acting reasonably, be necessary to effect or establish the
matters in paragraphs (i) through (v) above; and

 

(viii)       
the business of the merged entity is consistent with the Primary Business.

 

    41 

     

    

 

Notwithstanding anything to the contrary
contained in this Agreement, the acquisition by Canopy of all or a portion of the shares of the Parent pursuant to the Canopy Arrangement
Agreement, which may be effected by the amalgamation of the Parent with a Subsidiary of Canopy, is not prohibited by this Agreement.
Any reorganization of any Loan Party in connection with such acquisition by Canopy shall be subject to the prior consent of the
Lenders, which consent shall not be unreasonably withheld.

 

6.9             
Transactions with Affiliates. No Loan
Party shall enter into any transaction with any other Loan Party or any Affiliate of any Loan Party except in the ordinary course
of business and pursuant to the reasonable requirements of the business of such Loan Party upon fair and reasonable terms no less
favorable to such Loan Party than would be obtained in a comparable arm’s length transaction with a Person not an Affiliate
of such Loan Party and that are disclosed in writing to the Lenders, provided that such disclosure shall be required only if, during
any fiscal year of the Parent, equipment with an aggregate value of $1,000,000 is transferred during such fiscal year from one
or more Loan Parties to one or more Affiliates of a Loan Party, in which case each such transfer during such fiscal year from and
after the transfer of $1,000,000 of equipment shall be disclosed to the Lenders by notice given within thirty (30) days following
each such transfer.

 

6.10         
Restricted Payments. No Loan Party shall (i) declare
or make any dividend payment or other distribution of assets, properties, cash, rights, obligations or securities on account of
any Stock held by a Borrower Investor, including Permitted Tax Distributions, or (ii) purchase, redeem or otherwise acquire for
value any Stock now or hereafter outstanding and held by a Borrower Investor, if and to the extent the sum of the amounts under
clauses (i) and (ii) in any fiscal year of the Borrower exceeds fifty percent (50%) of the net income of the Parent for such fiscal
year, except Permitted Tax Distributions shall not be subject to the foregoing fifty percent (50%) of net income limitation.

 

6.11         
[Reserved].

 

6.12         
OFAC; USA Patriot Act; Anti-Corruption Laws.
No Loan Party nor any of its Subsidiaries, nor to the knowledge of the Loan Party, any director, officer, agent, employee, or other
person acting on behalf of the Loan Party or any of its Subsidiaries, will use the proceeds of any Loan, directly or indirectly,
for any payments to any Person, including any government official or employee, political party, official of a political party,
candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or
obtain any improper advantage, or otherwise take any action, directly or indirectly, that would result in a violation of any Anti-Corruption
Laws. Furthermore, the Loan Parties will not, directly or indirectly, use the proceeds of the transaction, or lend, contribute
or otherwise make available such proceeds to any Subsidiary, Affiliate, joint venture partner or other Person, to fund any activities
of or business with any Person, or in any country or territory, that, at the time of such funding, is the subject of Sanctions,
or in any other manner that will result in a violation by any Person participating in the transaction of any Sanctions.

 

6.13          Anti-Terrorism
Laws. Borrower shall not pay or cause to be paid
any Obligations or other amounts payable under the Loan Documents with any property or proceeds of any property that was
obtained or derived directly or indirectly as a result of an act or omission anywhere that, if it had occurred in Canada,
would have constituted a designated offence (as defined in section 462.31(1) of the Criminal Code).

 

    42 

     

    

 

Article
7

FINANCIAL COVENANTS

 

7.1             
Minimum Liquidity. As at each Determination Date, beginning with the Determination Date occurring March
31, 2021, Liquidity shall be equal to or greater than the applicable amount set forth below:

 

	Determination Date	Minimum Liquidity
	[REDACTED – COMMERCIALLY SENSITIVE]	[REDACTED – COMMERCIALLY SENSITIVE]
	[REDACTED – COMMERCIALLY SENSITIVE]	[REDACTED – COMMERCIALLY SENSITIVE]
	[REDACTED – COMMERCIALLY SENSITIVE]	[REDACTED – COMMERCIALLY SENSITIVE]

 

7.2             
Debt Service Coverage Ratio. As at each Determination Date, beginning with the Determination Date occurring
on June 30, 2021, the Consolidated Debt Service Coverage Ratio shall be equal to or greater than the applicable ration set forth
below:

 

	Determination Date	Minimum Consolidated Debt

 Service Coverage Ratio
	[REDACTED – COMMERCIALLY SENSITIVE]	[REDACTED – COMMERCIALLY SENSITIVE]
	[REDACTED – COMMERCIALLY SENSITIVE]	[REDACTED – COMMERCIALLY SENSITIVE]

 

    43 

     

    

 

Article
8

EVENTS OF DEFAULT

8.1             
Events of Default.

 

“Event of
Default” wherever used herein means any one of the following events:

 

8.1.1       
Failure to Pay Principal, Interest, Fees, Etc. If the Borrower shall fail to make any payment of (i)
the principal of the Term Loan, (ii) interest on the Term Loan, or (iii) any other amounts owning hereunder (other than principal
or interest) on the dates when the same shall become due and payable, whether at stated maturity or at a date fixed for any installment
or prepayment thereof or otherwise; or

 

8.1.2       
Misrepresentations. If any representation or warranty made by any Loan Party in this Agreement or in
any other Loan Document shall be false or misleading in any respect (or in any material respect if such representation or warranty
is not by its terms already qualified as to materiality) when made or deemed made; or

 

8.1.3       
Covenant Defaults. If there shall occur a default in the due performance or observance of any term,
covenant or agreement to be performed or observed by any Loan Party pursuant to this Agreement or any other Loan Document; or

 

8.1.4       
Insolvency. (a) If any Loan Party shall (i) make an assignment for the benefit of creditors or a composition
with creditors, (ii) generally not be paying its debts as they mature, (iii) admit its inability to pay its debts as they mature,
(iv) file a petition in bankruptcy, (v) be adjudicated insolvent or bankrupt, (vi) petition or apply to any tribunal for the appointment
of any receiver, custodian, liquidator or trustee of or for it or any substantial part of its property or assets, or (vii) commence
any proceeding relating to it under any Debtor Relief Law of any jurisdiction, whether now or hereafter in effect; or (b) if there
shall be commenced against any Loan Party any such proceeding or an order, judgment or decree approving the petition in any such
proceeding shall be entered against any Loan Party; or (c) if any Loan Party shall have concealed, removed, or permitted to be
concealed or removed, any part of its property, with intent to hinder, delay or defraud its creditors, or any of them, or shall
have made or suffered a transfer of any of its property which may be fraudulent under any Debtor Relief Law, fraudulent conveyance
or similar law; or (d) if any Loan Party shall have made any transfer of its property to or for the benefit of a creditor which
constitutes a preferential transfer under any Debtor Relief Law; or (e) if any Loan Party shall have suffered or permitted, while
insolvent, any creditor to obtain a lien upon any of its property through legal proceedings or distraint.

 

8.1.5        Cross
Default. Any Loan Party (i) fails to make any payment in respect of any Debt (other than the Obligations) having
an aggregate principal amount (including amounts owing to all creditors under any combined or syndicated credit arrangement)
of more than $1,000,000 when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) and
such failure continues after the applicable grace or notice period, if any, specified in the document relating thereto on the
date of such failure; or (ii) fails to perform or observe any other condition or covenant, or any other event shall occur or
condition exist, under any agreement or instrument relating to any such Debt, and such failure or event continues after the
applicable grace or notice period, if any, specified in the document relating thereto on the date of such failure or event,
if the effect of such failure, event or condition is to cause, or to permit the holder or holders of such Debt or beneficiary
or beneficiaries of such Debt (or a trustee or agent on behalf of such holder or holders or beneficiary or beneficiaries) to
cause such Debt to be declared to be due and payable (or otherwise required immediately to be prepaid, redeemed, purchased or
defeased) prior to its stated maturity (without regard to any subordination terms with respect thereto) or cash collateral in
respect thereof to be demanded.

 

    44 

     

    

 

8.1.6       
Monetary Judgments. One or more judgments, non-interlocutory orders, decrees or arbitration awards
shall be entered against any one or more of the Loan Parties involving in the aggregate a liability of $1,000,000 or more (excluding
amounts covered by insurance to the extent the relevant independent third-party insurer has not denied coverage therefor), and
the same shall remain unsatisfied, unvacated and unstayed pending appeal for a period of twenty (20) days after the entry thereof.

 

8.1.7       
Non-Monetary Judgment. One or more non-monetary judgments, orders or decrees shall be rendered against
any one or more of the Loan Parties which has or would reasonably be expected to have, either individually or in the aggregate,
a Material Adverse Effect, and there shall be any period of thirty (30) consecutive days during which a stay of enforcement of
such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect.

 

8.1.8       
Collateral. Any material provision of any Loan Document shall for any reason cease to be valid and
binding on or enforceable against any Loan Party (other than as a result of one or more transactions permitted pursuant to this
Agreement) or any Loan Party shall so state in writing or bring an action to limit its obligations or liabilities thereunder; or
any Security Document shall for any reason (other than pursuant to the terms thereof) cease to create a valid security interest
in the Collateral (to the extent that such perfection or priority is required hereby) purported to be covered thereby or such security
interest shall for any reason (other than the failure of the Lenders to take any action within its control) cease to be a perfected
and first priority security interest subject only to Permitted Liens.

 

8.1.9       
Change of Control. A Change of Control shall occur.

 

8.1.10   
Notice and Opportunity to Cure. Notwithstanding any other provision of the Loan Documents, the Lenders
shall not demand repayment of any part of the Term Loan or accelerate the maturity of the Term Loan (a) because of a monetary default
(defined below), unless the monetary default is not cured within five days of its due date, or (b) because of a nonmonetary default
(defined below) that is reasonably capable of being cured, unless such nonmonetary default is not cured within 30 days after the
date on which Agent or the Lenders transmits by facsimile, mails or delivers written notice of the nonmonetary default to Borrower.
If a nonmonetary default is reasonably capable of being cured and the cure cannot reasonably be completed within the thirty-day
cure period, the cure period shall be extended up to sixty days so long as Borrower has commenced action to cure within the thirty-day
cure period and, in the Lenders’ opinion (acting reasonably), Borrower is proceeding to cure the default with due diligence.
For purposes of this Agreement, the term “monetary default” means a failure by the Borrower under Section 8.1.1, and
the term “nonmonetary default” means a failure by the Borrower or any other Person to perform or observe any obligation
contained in the Loan Documents, other than (A) the obligation to make payments provided for in the Loan Documents, (B) the covenants
under Article 7, or (C) a default under Section 8.1.4 or 8.1.6.

 

    45 

     

    

 

8.2             
Acceleration; Remedies.

 

8.2.1       
 Acceleration upon Defaults. Subject to Section 8.1.10, upon the occurrence and during the continuance
of any Event of Default, or at any time thereafter if any Event of Default shall then be continuing, the Lenders may by written
notice to the Borrower, declare the entire unpaid principal balance or any portion of the principal balance of all or any of the
Notes, and interest accrued, if any, thereon and all other amounts accrued hereunder or under the other Loan Documents, to be immediately
due and payable by the Borrower.

 

8.2.2       
Remedies in General. In the event of acceleration pursuant to Section 8.2.1, all principal and interest,
fees, and other amounts shall thereupon become and be immediately due and payable, without presentation, demand, protest, notice
of protest or other notice of dishonor of any kind, all of which are hereby expressly waived by the Borrower; and the Lender may
proceed to protect and enforce its rights under the Loan Documents in any manner or order it deems expedient without regard to
any equitable principles of marshalling or otherwise. In addition to all other rights hereunder or under Law, the Lender shall
have the right to institute proceedings in equity or other appropriate proceedings for the specific performance of any covenant
or agreement made in any of the Loan Documents or for an injunction against the violation of any of the terms of any of the Loan
Documents or in aid of the exercise of any power granted in any of the Loan Documents or by Law or otherwise. All rights and remedies
given by this Agreement, the Notes and the other Loan Documents are cumulative and not exclusive of any of such rights or remedies
or of any other rights or remedies available to the Lenders, and no course of dealing between Borrower, on one hand, and the Lender,
on the other hand, or any delay or omission in exercising any right or remedy shall operate as a waiver of any right or remedy,
and every right and remedy may be exercised from time to time and as often as shall be deemed appropriate by the Lender.

 

8.2.3       
Rights to Appoint Receiver. Without limiting and in addition to the rights, options and remedies Agent
and Lenders have hereunder, the other Loan Documents, the UCC, at law or in equity, upon the occurrence and continuation of an
Event of Default, Agent shall have the right to apply for and have a receiver appointed by a court of competent jurisdiction to
enforce the rights and remedies of Agent and the Lenders in order to manage, protect, preserve, sell or dispose the Collateral
and continue the operation of the business of the Borrower and the Loan Parties and to collect all revenues and profits thereof
and apply the same to the payment of all expenses and other charges of such receivership including the compensation of the receiver
and to the payments of the aforesaid until a sale or other disposition of such Collateral shall be finally made and consummated.

 

    46 

     

    

 

8.3              Equity
Cure. Notwithstanding anything to
the contrary contained in this Section 8, in the event that either or both of the financial covenants set forth in Sections
7.1 or 7.2 hereof are not complied with, Borrower shall have the right (the “Cure Right”), at any time
until the date that is 20 days after the date the applicable Determination Date, to issue equity interests for cash or
otherwise receive cash contributions to their equity (the “Cure Amount”), and thereupon Borrower’s
compliance with Sections 7.1 or 7.2 hereof shall be recalculated giving effect to the following pro forma adjustment: (a)
with respect to Section 7.1 hereof, the Cure Amount shall constitute a corresponding increase in Liquidity; and (b) with
respect Section 7.2 hereof, the Cure Amount shall constitute a corresponding increase in Adjusted EBITDA. If, after giving
effect to the foregoing recalculations, the requirements of Sections 7.1 or 7.2 hereof shall be satisfied, then the
requirements of Sections 7.1 or 7.2 shall be deemed satisfied as of the end of the relevant fiscal quarter of Borrower with
the same effect as though there had been no failure to comply therewith at such date, and the applicable breach or
default of Sections 7.1 or 7.2 that had occurred shall be deemed cured
for the purposes of this Agreement. Notwithstanding anything herein to the contrary, upon Lenders’ receipt of a notice
from Borrower that Borrower intends to exercise the Cure Right (a “Notice of Intent to Cure”), which shall
be given, if at all, not later than the tenth (10th) day following the applicable Determination Date, until the
twentieth day following the Determination Date to which such Notice of Intent to Cure relates, no Event of Default shall be
deemed to have occurred because of any failure to comply with Sections 7.1 or 7.2 and the Lenders shall not demand repayment
of any part of the Term Loan or otherwise exercise the right to accelerate the Term Loan or exercise any right to foreclose
on or take possession of the Collateral on the basis of an Event of Default having occurred and being continuing under
Sections 7.1 or 7.2 hereof. Within twenty-five (25) days of each Determination Date with respect to which the Cure Right is
exercised, the Borrower shall offer (the “Cure Amount Prepayment Offer”) the Lenders to prepay the Term
Loan in an amount equal to 100% of the applicable Cure Amount. Upon receipt of a Cure Amount Prepayment Offer, each Lender
shall have a period of five (5) days (the “Cure Offer Prepayment Period”) to provide written notice (the
 “Cure Amount Offer Response”) to the Borrower as to whether such Lender will require the Borrower to pay
the Cure Amount to such Lender. For the avoidance of doubt, and notwithstanding anything to the contrary contained in Article
10, each Lender has the right to decide for itself only whether it will require the Borrower to pay the Cure Amount, and no
decision by any Lender is binding on any other Lender. In the event a Lender has not delivered a Cure Amount Offer Response
during the Cure Offer Prepayment Period, such Lender shall be deemed to have elected not to require the Borrower to pay the
applicable Cure Amount to such Lender and Borrower shall not be required to pay to such Lender any prepayment with respect to
the applicable Cure Amount. If more than one Lender timely delivers a Cure Amount Offer Response requiring payment of a Cure
Amount and the sum of the principal balance of, and accrued, unpaid interest on, the Notes held by such Lenders exceeds the
Cure Amount, then each such Lender shall be entitled to its Pro-Rata Share of such Cure Amount. All prepayments shall be
applied first to accrued, unpaid interest and then to principal. No Prepayment Premium shall be owing or payable in relation
to any prepayment under this Section 8.3. Notwithstanding anything to the contrary contained herein, Borrower shall not have
the right to exercise the Cure Right more than five (5) times in the aggregate after the Closing Date.

 

8.4             
Priority of Payments. Notwithstanding any contrary provision set forth herein or in any other Loan
Document, (i) during the continuance of an Event of Default, any and all payments received by Agent or the Lenders in respect of
any Obligation in accordance with clauses first through sixth below; and (ii) all payments made by the Loan Parties after acceleration
of the Notes (so long as such acceleration has not been rescinded) or have otherwise matured, including proceeds of Collateral,
shall be applied as follows:

 

(a)       first,
to payment of costs, expenses and indemnities, including attorneys’ fees and costs, of Agent payable or reimbursable by the
Loan Parties under the Loan Documents;

 

(b)       second,
to payment of costs, expenses and indemnities, including attorneys’ fees and costs of Lenders payable or reimbursable by
the Loan Parties under the Loan Documents;

 

    47 

     

    

 

(c)       third,
to payment of all accrued unpaid interest on the Obligations (whether or not accruing after the filing of any case under the Debtor
Relief Laws with respect to any Obligations and whether or not a claim for such post-filing or post-petition interest, fees, and
charges is allowed or allowable in any such proceeding);

 

(d)       fourth,
to payment of principal of the Obligations then due and payable;

 

(e)       fifth,
to payment of any other amounts owing constituting Obligations; and

 

(f)       sixth,
any remainder shall be for the account of and paid to whoever may be lawfully entitled thereto.

 

In carrying out the foregoing, (i) amounts
received shall be applied to each category in the numerical order provided until exhausted prior to the application to the immediately
succeeding category, (ii) if payments are not sufficient to pay in full each of the categories under clauses third, fourth and
fifth above, then each of the Lenders entitled to payment shall receive an amount equal to its Pro Rata Share of amounts available
to be applied pursuant to clauses third, fourth and fifth above even though, with respect to clause third, the Interest Rate and
Default Rate applicable to the Notes may vary on account of the application of Sections 2.7.1 and 2.7.2.

 

Article
9

MISCELLANEOUS

 

9.1             
Notices; Effectiveness; Electronic Communication.

 

9.1.1       
Notices Generally. Any notice, demand, communication, information, document or other material provided
herein (“Communication”) shall be in writing and shall be delivered by hand or overnight courier service, mailed
by certified or registered mail or sent by electronic mail (i.e., email) as follows:

 

(a)              
if to the Borrower, at ‎450 Lexington Avenue, #3308‎, New York, NY 10163‎, Attention: James Doherty
([REDACTED – PERSONAL INFORMATION]);

 

(b)              
if to a Lender, to Agent at Agent’s address in Section 9.1.1(c); and

 

(c)              
if to Agent, to Acquiom Agency Services LLC, 150 South Fifth Street, Suite 2600, Minneapolis, MN 55402, Attn: [REDACTED
 – PERSONAL INFORMATION].

 

Communications sent
by hand or overnight courier service shall be deemed to have been given when received; notices sent by email transmission
shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall
be deemed to have been given at the opening of business on the next Business Day for the recipient). Communications sent by
certified or registered mail shall be deemed to have been given when received. Notwithstanding anything to the contrary
contained herein, Borrower shall send to Agent all Communications to intended to be received by the Lenders, in which case
receipt by Agent shall be deemed to be receipt by the Lenders, and Agent shall transmit such Communications to the
Lenders.

 

    48 

     

    

 

9.1.2       
Change of Address, Etc. Any party hereto may change its address or email address for notices and other
communications hereunder by notice to the other parties hereto.

 

9.1.3       
Electronic Communications. Communications by Agent to the Lenders hereunder may be delivered or furnished
by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Agent. Agent
or the Borrower may, in its discretion, agree to accept Communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to particular Communications. Unless Agent
otherwise prescribes, (i) Communications sent to an e-mail address shall be deemed received upon the sender’s receipt of
an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return
e-mail or other written acknowledgement), and (ii) Communications posted to the Platform shall be deemed received upon the deemed
receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such Communication
is available and identifying the Platform therefor; provided that, for both clauses (i) and (ii) above, if such Communication is
not sent during the normal business hours of the recipient, such Communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient.

 

9.1.4       
Platform. Each Loan Party agrees that Agent may, but shall not be obligated to, make the Communications
available to the Lenders by posting the Communications on Debt Domain (or a substantially similar electronic transmission system)
(the “Platform”). The Platform is provided “as is” and “as available.” The Agent Parties
(as defined below) do not warrant the adequacy of the Platform and expressly disclaim liability for errors or omissions in the
Communications. No warranty of any kind, express, implied or statutory, including, without limitation, any warranty of merchantability,
fitness for a particular purpose, non-infringement of third-party rights or freedom from viruses or other code defects, is made
by any Agent Party in connection with the Communications or the Platform. In no event shall Agent or any of its Related Parties
(collectively, the “Agent Parties”) have any liability to the Borrower or the other Loan Parties, any Lender
or any other Person or entity for damages of any kind, including, without limitation, direct or indirect, special, incidental or
consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of the Borrower’s, any Loan
Party’s or Agent’s transmission of Communications through the Platform.

 

9.2              No
Implied Waivers. No failure or delay on the part of a Lender in exercising any right, power or privilege under the
Loan Documents and no course of dealing between Borrower, on the one hand, and a Lender or Agent, on the other hand, shall
operate as a waiver of any such right, power or privilege. No single or partial exercise of any right, power or privilege
under the Loan Documents precludes any other or further exercise of any such right, power or privilege or the exercise of any
other right, power or privilege. The rights and remedies expressly provided in the Loan Documents are cumulative and not
exclusive of any rights or remedies which the Lenders would otherwise have. No notice to or demand on Borrower in any case
shall entitle Borrower to any other or further notice or demand in similar or other circumstances or shall constitute a
waiver of the right of the Lender to take any other or further action in any circumstances without notice or demand. Any
waiver that is given shall be effective only if in writing and only for the limited purposes expressly stated in the
applicable waiver.

 

    49 

     

    

 

9.3             
Severability. Every provision of the Loan Documents is intended to be severable. If any term or provision
of the Loan Documents shall be invalid, illegal or unenforceable for any reason, the validity, legality and enforceability of the
remaining provisions shall not be affected or impaired thereby. Any invalidity, illegality or unenforceability of any term or provision
of the Loan Documents in any jurisdiction shall not affect the validity, legality or enforceability of any such term or provision
in any other jurisdiction.

 

9.4             
Amendments and Waivers.

 

9.4.1       
Except as otherwise provided in Sections 9.4.1 to 9.4.3, no amendment or waiver of, or supplement or other modification
(which shall include any direction to Agent pursuant) to, any Loan Document or any provision thereof, and no consent with respect
to any departure by any Loan Party from any Loan Documents, shall be effective unless the same shall be in writing and signed by
the Required Lenders (or by Agent with the consent of the Required Lenders), and the Borrower (or the affected Loan Party, as the
case may be) and then such waiver shall be effective only in the specific instance and for the specific purpose for which given.

 

9.4.2       
No such waiver, amendment, supplement or consent shall, unless in writing and signed by all of the Lenders (or by
Agent with the consent of all of the Lenders) and the Borrower (or the affected Loan Party, as the case may be), do any of the
following:

 

(a)              
except as provided in Sections 2.7.1 and 2.7.2, subject the Lenders to any additional obligations;

 

(b)              
except as provided in Sections 2.7.1 and 2.7.2, reduce the principal of, or interest rates that have accrued or that
will be charged on the outstanding principal amount of, the Term Loan;

 

(c)              
postpone any date fixed for any payment of principal of, or interest on, the Term Loan (including, without limitation,
the Maturity Date);

 

(d)              
amend this Section 9.4 or amend the definitions of the terms used in this Agreement or the other Loan Documents
insofar as such definitions affect the substance of this Section 9.4;

 

9.4.3       
No such waiver, amendment, supplement or consent shall, unless in writing and signed by a Supermajority of the Lenders
(or by Agent with the consent of a Supermajority l of the Lenders) and the Borrower (or the affected Loan Party, as the case may
be), do any of the following:

 

(a)              
 release any Guarantor from its obligations under the Guaranty unless such release is expressly provided for in the
Guaranty;

 

    50 

     

    

 

(b)              
 waive a default under Section 8.1.1; or

 

(c)              
release any Collateral unless released or Disposed of as permitted by Section 6.2.

 

9.4.4       
Notwithstanding anything to the contrary contained in Section 9.4, Agent and the Borrower may amend, modify or supplement
this Agreement or any other Loan Document to (1) cure any ambiguity, omission, defect or inconsistency therein, or (2) grant a
new Lien for the benefit of the Secured Parties, extend an existing Lien over additional Property for the benefit of the Lenders
or join additional Persons as Loan Parties.

 

9.4.5       
Notwithstanding anything to the contrary contained in Section 9.4, no consent of a Lender that is a Loan Party or
an Affiliate of a Loan Party shall be required for any such waiver, amendment, supplement or consent, or for any other decision
to be made by the Lenders in connection with the Term Loan or any of the Loan Documents, including, without limitation, any decision
referred to in Section 10.12. In determining the Lenders the constitute the Required Lenders, a Supermajority of the Lenders or
all of the Lenders, any portion of the Term Loan held by a Lender that is Loan Party or an Affiliate of a Loan Party shall be disregarded.

 

9.5             
Successors and Assigns. The provisions of this Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and assigns permitted hereby, except the Borrower may assign its rights and
obligations hereunder without the prior written consent of the Lender, and any assignment by a Lender shall be subject to Section
9.13. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby) any legal or equitable right, remedy or claim under or by reason of this
Agreement.

 

9.6             
Governing Law; Jurisdiction; Etc.

 

9.6.1       
Governing Law. This Agreement and the other Loan Documents and any claims, controversy, dispute or
cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement or any other
Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby
and thereby shall be governed by, and construed in accordance with, the Law of the State of New York.

 

9.6.2        Jurisdiction.
Each party hereto irrevocably and unconditionally agrees that it will not commence any action, litigation or proceeding of
any kind or description, whether in law or equity, whether in contract or in tort or otherwise, against Agent or a Lender, or
any Related Party of the foregoing in any way relating to this Agreement or any other Loan Document or the transactions
relating hereto or thereto, in any forum other than the courts of the State of New York, and of the United States District
Court for the Southern District of New York, and any appellate court from any thereof, and each of the parties hereto
irrevocably and unconditionally submits to the jurisdiction of such  courts and agrees that all claims in respect of any
such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent
permitted by applicable Law, in such federal court.  Each of the parties hereto agrees that a final judgment in any such
action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by Law. Nothing in this Agreement or in any other Loan Document shall affect any right that the
Lenders may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against
Borrower or any other Loan Party or its properties in the courts of any jurisdiction.

 

    51 

     

    

 

9.6.3       
Waiver of Venue. Borrower irrevocably and unconditionally waives, to the fullest extent permitted by
applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out
of or relating to this Agreement or any other Loan Document in any court referred to in Section 9.6.2. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by applicable Law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

 

9.6.4       
Service of Process. The Borrower hereby irrevocably waives personal service of any and all legal process,
summons, notices and other documents and other service of process of any kind and consents to such service in any suit, action
or proceeding brought in the United States with respect to or otherwise arising out of or in connection with any Loan Document
by any means permitted by applicable Law, including by the mailing thereof (by registered or certified mail, postage prepaid) to
the address of the Borrower specified herein (and shall be effective when such mailing shall be effective, as provided therein).

 

9.7             
Maximum Lawful Interest Rate. If, at any time, the rate of interest, together with all amounts that
constitute interest and that are reserved, charged or taken hereunder as compensation for fees, services or expenses incidental
to the making, negotiating or collecting of the Term Loan, shall be deemed by a court of law with competent jurisdiction, or other
Governmental Authority with competent jurisdiction or a tribunal to exceed the maximum rate of interest permitted to be charged
by the Lender to the Borrower under applicable Law, then, during such time as such rate of interest would be deemed excessive,
that portion of each sum paid attributable to that portion of such interest rate that exceeds the maximum rate of interest so permitted
shall be deemed a voluntary prepayment of the unpaid principal amount due pursuant to this Agreement and the Note.

 

9.8             
Counterparts; Integration; Effectiveness; Electronic Execution.

 

9.8.1       
Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall
constitute a single contract. This Agreement and the other Loan Documents constitute the entire contract among the parties relating
to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. Except as provided in Section 3.1, this Agreement shall become effective when it shall have been executed
by the Lender and when the Lender shall have received counterparts hereof that, when taken together, bear the signatures of each
of the other parties hereto. Delivery of an executed counterpart of a signature page of this Agreement by facsimile or in electronic
(i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this
Agreement.

 

    52 

     

    

 

9.8.2        Electronic
Execution of Loan Documents. The words “execution,” “signed,” “signature,” and
words of like import in this Agreement or any other Loan Document shall be deemed to include electronic signatures or the
keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a
manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as
provided for in any applicable Law, including the Federal Electronic Signatures in Global and National Commerce Act, the New
York State Electronic Signatures and Records Act, or any other similar state Laws based on the Uniform Electronic
Transactions Act.

 

9.9             
Expenses; Indemnity; Damage Waiver.

 

9.9.1        Costs
and Expenses. The Borrower shall pay within ten (10) days following demand (i) all reasonable and documented out of
pocket expenses incurred by Agent, the Lenders and their respective Affiliates (including the reasonable and documented
attorney fees and disbursements), in connection with the preparation, negotiation, execution and delivery of this Agreement
and the other Loan Documents, (ii) the creation, perfection and maintenance of the perfection of Agent’s Liens upon the
Collateral, including Lien search, filing and recording fees, (iii) all reasonable and documented out of pocket expenses
incurred by Agent, the Lenders and their respective Affiliates, in connection with the administration of this Agreement and
the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (limited, in the
case of legal counsel, to the reasonable and documented fees, expenses, charges and disbursements of (x) in the case of
Agent, one primary outside counsel, and (y) in the case of the Required Lenders, one firm acting as primary outside counsel,
to the extent necessary one firm of local outside counsel in each relevant jurisdiction, and such regulatory firms as may be
deemed reasonably necessary by the Required Lenders, which local outside counsel and regulatory counsel for the Required
Lenders shall also be available for Agent), (iv) all reasonable and documented out of pocket costs and expenses, if any, of
Agent and each Lender if an Event of Default has occurred and is continuing, or otherwise in connection with any workout,
restructuring, reorganization or debt modification or exchange transaction, any enforcement of, or exercise or protection of
its rights and remedies (whether through negotiations, legal proceedings, or otherwise) (A) in connection with this Agreement
and the other Loan Documents, including its rights under this Section, (B) in connection with the Term Loan made hereunder,
including all such reasonable and documented out of pocket expenses incurred during any workout, restructuring or
negotiations in respect of such Term Loan, (C) in connection with the enforcement or preservation of any right or remedy
under any Loan Document, any Obligation, with respect to the Collateral or any other related right or remedy or any attempt
to inspect, verify, protect, insure, collect, sell, liquidate or otherwise dispose of any Collateral or (D) the commencement,
defense, conduct of, intervention in, or the taking of any other action (including preparation for and/or response to any
subpoena or request for document production relating thereto) with respect to, any proceeding (including any bankruptcy or
insolvency proceeding) related to any Loan Party, Loan Document, Obligation or consummation of the transactions contemplated
by this Agreement, and (iv) all fees and expenses of Agent arising from the provision of Agent’s services to the
Lenders under the Loan Documents, (v) legal fees and expenses of Agent and the Lenders, limited to the reasonable and
documented fees, expenses, charges and disbursements of (x) in the case of Agent, one primary outside counsel, and (y) in the
case of the Required Lenders, one firm acting as primary outside counsel, to the extent necessary one firm of local outside
counsel in each relevant jurisdiction, and such regulatory firms as may be deemed reasonably necessary by the Required
Lenders, which local outside counsel and regulatory counsel for the Required Lenders shall also be available for Agent, and
(vi) any financial or other professional advisors, consultants, and third party service providers retained, appointed or
engaged by or on behalf of the Required Lenders.

 

    53 

     

    

 

9.9.2       
Indemnification by the Borrower. The Borrower shall indemnify Agent, each Lender and each Related Party
of Agent and of each Lender (each such Person being called an “Indemnitee”) against, and hold each Indemnitee
harmless from, any and all Liabilities (including the fees, charges and disbursements of any counsel and any consultant for any
Indemnitee), incurred by any Indemnitee or asserted against any Indemnitee by any Person other than such Indemnitee and its Related
Parties arising out of, in connection with, or as a result of (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (ii) the Term
Loan or the use or proposed use of the proceeds therefrom, (iii)  any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by Borrower, and regardless of whether any Indemnitee is a party thereto; or
(iv) any other act, event or transaction related, contemplated in or attendant to any of the foregoing; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities
or related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted
from the gross negligence or willful misconduct of such Indemnitee or any of its Related Parties or (y) result from a claim
brought by Borrower against an Indemnitee or any of its Related Parties for breach of such Indemnitee’s obligations hereunder
or under any other Loan Document, if Borrower has obtained a final and nonappealable judgment in its favor on such claim as determined
by a court of competent jurisdiction. Borrower shall not, without the prior written consent of each Indemnitee affected thereby,
settle any threatened or pending claim or action that would give rise to the right of any Indemnitee to claim indemnification hereunder
unless such settlement (x) includes a full and unconditional release of all liabilities arising out of such claim or action against
such Indemnitee at any time (including future, prospective and unmatured claims or actions), (y) does not include any statement
as to or an admission of fault, culpability or failure to act by or on behalf of any Indemnitee and (z) does not require any payment
to be made, and does not result in any obligation regarding any payment (including any payment of any costs or expenses) to be
imposed or require such obligation to be incurred or assumed, and does not require any actions to be taken or refrained from being
taken by any Indemnitee other than the execution of the related settlement agreement, if any. This Section 9.9.2 shall not apply
with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.

 

9.9.3       
Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable Law, Borrower shall
not assert, and Borrower hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential
or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any
Loan or the use of the proceeds thereof. No Indemnitee referred to in Section 9.9.2 shall be liable for any damages arising from
the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic
or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated
hereby or thereby.

 

    54 

     

    

 

 

9.9.4       
 Payments. All amounts due under Section 9.9 shall be payable within 30 days of demand therefor.

 

9.9.5       
Survival. Each party’s obligations under this Section shall survive the termination of the Loan
Documents and payment of the obligations hereunder.

 

9.10         
Records. The outstanding balance of the Term Loan, and the unpaid interest accrued thereon, shall at
all times be ascertained from the records of Lender, which shall be conclusive evidence thereof absent manifest error.

 

9.11         
Integration Clause.This Agreement, together with the other Loan Documents, any fee letters and
any other documents incorporated herein or therein by reference and all related exhibits and schedules, constitutes the sole and
entire agreement of the parties to this Agreement with respect to the subject matter contained herein and therein, and supersedes
all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to
such subject matter.

 

9.12         
Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT
OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

9.13         
Assignment by Lenders.

 

9.13.1   
Any Lender may at any time assign to one or more assignees all or a portion of its rights and obligations under this
Agreement (including all or a portion of the Term Loan at the time owing to it); provided that any such assignment shall be subject
to the following conditions:

 

(a)              
Minimum Amounts. The portion of the Term Loan being assigned by each assignment shall not be less than $1,000,000,
unless (A) such assignment is to a Lender, and Affiliate of a Lender, or an Approved Fund or (B) each of the Agent and, so long
as no as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be unreasonably
withheld or delayed).

 

(b)              
Proportionate Amounts. Each partial assignment shall be made as an assignment of a proportionate part of all
the assigning Lender’s rights and obligations under this Agreement with respect to the portion of the Term Loan of the assigning
Lender being assigned.

 

    55

     

    

 

(c)              
 Required Consents. The following consents or approvals shall be required for any assignment, except as provided
below: :

 

(i)       the
consent of the Borrower (such consent not to be unreasonably withheld or delayed) shall be required unless (x) an Event of Default
has occurred and is continuing at the time of such assignment or (y) such assignment is to a Lender, an Affiliate of a Lender or
an Approved Fund (such Persons in this clause (y) being Eligible Assignees); provided that the Borrower shall be deemed to have
consented to any such assignment unless it shall object thereto by written notice to Agent within fifteen (15) Business Days after
having received notice thereof; and

 

(ii)       the
consent of Agent (such consent not to be unreasonably withheld or delayed) shall be required for assignments to a Person that is
not a Lender, an Affiliate of a Lender or an Approved Fund.

 

(d)              
Assignment and Acceptance. The parties to each assignment shall execute and deliver to Agent an Assignment
and Acceptance, together with a processing and recordation fee of $3,500; provided that Agent may, in its sole discretion, elect
to waive such processing and recordation fee in the case of any assignment. The assignee, if it is not a Lender, shall deliver
to Agent an Administrative Questionnaire. Each Lender, upon execution and delivery hereof or upon executing and delivering an Assignment
and Acceptance, as the case may be, represents and warrants as of the Closing Date or as of the applicable Effective Date (as defined
in the applicable Assignment and Acceptance) that (i) is an “accredited investor” (as defined in Regulation D of the
Securities Act of 1933), (ii) it will make or invest in, as the case may be, the Term Loan for its own account in the ordinary
course of its business and without a view to distribution of the Term Loan within the meaning of the Securities Act or the Exchange
Act or other federal securities laws (it being understood that, subject to the provisions of this Section 9.13, the disposition
of the Term Loan or any interests therein shall at all times remain within its exclusive control), and (iv) such Lender does not
own or control, or own or control any Person owning or controlling, any trade debt or Debt of any Loan Party other than the Obligations
or any Equity Interests of any Loan Party

 

(e)              
Limitations on Assignment to Certain Persons. No such assignment shall be made to (A) any Loan Party or its
Subsidiaries, or (B) any Defaulting Lender or any of its Related Parties, or any Person who, upon becoming a Lender hereunder,
would constitute any of the foregoing Persons described in this clause (B), or (C) a Disqualified Person.

 

(f)               
Certification Regarding Regulatory Approval. The assignee shall certify in writing to the Borrower that such
assignee is not aware of anything in the background or record of such assignee (or its officers, directors and principals, if applicable)
that would preclude such assignee from obtaining the Cannabis Lien Approvals from the applicable Governmental Authorities in the
Approval Required States, and (ii) if such assignee is rejected by any such applicable Governmental Authority, such assignee shall
agree in writing to sell its portion of the Term Loan in accordance with Section 9.13, which sale shall be completed within thirty
(30) days from such rejection.

 

    56

     

    

 

(g)              
 Certain Additional Payments. In connection with any assignment of rights and obligations of any Defaulting
Lender hereunder, no such assignment shall be effective unless and until, in addition to the other conditions thereto set forth
herein, the parties to the assignment shall make such additional payments to Agent in an aggregate amount sufficient, upon distribution
thereof as appropriate, to pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to Agent and each
other Lender hereunder (and interest accrued and unpaid thereon. Notwithstanding the foregoing, in the event that any assignment
of rights and obligations of any Defaulting Lender hereunder shall become effective under applicable Law without compliance with
the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes
of this Agreement until such compliance occurs.

 

(h)              
Effective Date. Subject to acceptance and recording thereof by Agent pursuant to Section 9.13(d), from and
after the Effective Date specified in each Assignment and Acceptance, the assignee thereunder shall be a party to this Agreement
and, to the extent of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Acceptance,
be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all of the assigning
Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto) but shall continue to
be entitled to the benefits of Section 9.9 with respect to facts and circumstances occurring prior to the effective date of such
assignment; provided, that except to the extent otherwise expressly agreed by the affected parties, no assignment by a Defaulting
Lender will constitute a waiver or release of any claim of any party hereunder arising from that Lender’s having been a Defaulting
Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this paragraph
shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance
with Section 9.13(i).

 

(i)                
Participations. Each Lender shall have the right at any time to sell one or more participations to any Eligible
Assignee (each such Eligible Assignee that purchases a participation, a “Participant”) in all or any portion
of the Term Loan held by such Lender, subject to obtain the approval for such Participant described in clause (iii) of Section
9.13(c) prior to consummation of the sale of such participation. Any sale of any participation made to any Person other than an
Eligible Assignee shall be absolutely void ab initio. After giving effect to a Participation, (i) the selling Lender’s obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, and (iii) the Borrower, Agent and other Lenders shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under this Agreement.

 

(j)                 Agent
(or its sub-agent appointed by it) shall maintain at its address referred to in Section 9.1.1(c) a copy of each Assignment
and Acceptance delivered to it and a register for the recordation of the names and addresses of the Lenders, principal amount
of the Term Loan and interest owing to each Lender pursuant to the terms hereof from time to time (the
 “Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest
error, and the Borrower, Agent and the Lenders shall treat each Person whose name is recorded in the Register pursuant to the
terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the
Borrower and any Lender (but a Lender shall solely be permitted to inspect such portions of the Register that disclose
information relating to the portion of the Term Loan held by such Lender and amounts owing to it, and not to any other
Lender) at any reasonable time and from time to time upon reasonable prior notice. The Borrower hereby agrees that Agent
acting as its agent solely for the purpose set forth above in this Section 9.13(j), shall not subject Agent and its officers,
directors, employees, agents, sub-agents and affiliates to any fiduciary or other implied duties, all of which are hereby
waived by the Borrower with respect to Agent acting as its agent solely for the purpose set forth above in this Section
9.13(j).

 

    57

     

    

 

Article
10

AGENT

 

 

10.1         
Appointment and Authority. 

 

10.1.1   
Each Lender hereby irrevocably (a) appoints Acquiom Agency Services LLC to act on its behalf as administrative agent
and collateral agent hereunder and under the other Loan Documents, and (b) authorizes Agent to take such actions on its behalf
and to exercise such powers as are delegated to Agent, as applicable, by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto. Each Lenders consents to and authorizes Agent’s execution and delivery of
(i) any subordination agreement with respect to Intercompany Debt on behalf of such Lender and agrees to be bound by the terms
and provisions thereof, provided the Required Lenders have approved such subordination agreement, and (ii) any amendment or modification
of this Agreement or any other Loan Document, provided that such amendment or modification has been approved by the Required Lenders
(or such other number or percentage of the Lenders or Lenders as shall be expressly provided for herein or in the other Loan Documents).
The provisions of this Article 10 are solely for the benefit of the Lenders, and neither the Borrower nor any other Loan Party
shall have rights as a third party beneficiary of any of such provisions, other than the rights specifically and expressly provided
to the Borrower under this Article 10. It is understood and agreed that the use of the term “agent”, “collateral
agent” and “administrative agent” herein or in any other Loan Document (or any other similar term) with reference
to Agent, as applicable, is not intended to connote any fiduciary or other implied (or express) obligations arising under agency
doctrine of any applicable Law. Instead such term is used as a matter of market custom, and is intended to create or reflect only
an administrative relationship between contracting parties.

 

10.1.2   
Any corporation or association into which Acquiom Agency Services LLC may be converted or merged, or with which it
may be consolidated, or to which it may sell or transfer all or substantially all of its corporate trust business and assets as
a whole or substantially as a whole, or any corporation or association resulting from any such conversion, sale, merger, consolidation
or transfer to which Acquiom Agency Services LLC is a party, will be and become the successor Agent under this Agreement and will
have and succeed to the rights, powers, duties, immunities and privileges as its predecessor, without the execution or filing of
any instrument or paper or the performance of any further act.

 

10.2          Agent
as Lender. Agent and its Affiliates may make loans and other extensions of credit to, acquire Stock of, engage in any
kind of business with, any Loan Party or Affiliate thereof as though it were not acting as Agent and may receive separate
fees and other payments therefor. To the extent Agent or any of its Affiliates makes any portion of the Term Loan or
otherwise becomes a Lender hereunder, it shall have and may exercise the same rights and powers hereunder and shall be
subject to the same obligations and liabilities as any other Lender and the terms “Lender”, and any
similar terms shall, except where otherwise expressly provided in any Loan Document, include Agent or such Affiliate, as the
case may be, in its individual capacity as Lender. Acquiom Agency Services LLC (and any successor acting as Agent) and its
Affiliates may accept fees and other consideration from the Borrower or any Affiliate of the Borrower for services in
connection with this Agreement or otherwise without having to account for the same to the Lenders

 

10.3         
Exculpatory Provisions.

 

10.3.1   
Agent (which term as used in this Section 10.3 include its Related Parties)
shall not have any duties or obligations except those expressly set forth herein and in the other Loan Documents, and its duties
hereunder shall be administrative in nature. Without limiting the generality of the foregoing, Agent:

 

(a)              
shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is
continuing;

 

(b)              
shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents or that Agent is required to exercise as directed
in writing by the Required Lenders (or such other number or percentage of the Lenders or Lenders as shall be expressly provided
for herein or in the other Loan Documents), provided that Agent shall be required to take any action that, in its opinion or the
opinion of its counsel, may expose Agent to liability or that is contrary to any Loan Document or applicable Law, including for
the avoidance of doubt any action that may be in violation of the automatic stay under any Debtor Relief Law or that may effect
a forfeiture, modification or termination of assets of a Defaulting Lender in violation of any Debtor Relief Law;

 

(c)              
shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, nor shall
it be liable for the failure to disclose, any information relating to the Borrower, any other Loan Party or any of their respective
Affiliates that is communicated to or obtained by the Person serving as Agent or any of its Affiliates in any capacity;

 

(d)              
shall not be required to expend or risk its own funds or otherwise incur any financial liability in the performance
of any of its duties or in the exercise of any of its rights or powers hereunder; and

 

(e)               shall
not be responsible or liable for any failure or delay in the performance of its obligations under this Agreement arising out
of or caused, directly or indirectly, by circumstances beyond its control, including without limitation, any act or provision
of any present or future Law or Governmental Authority; acts of God; earthquakes; fires; floods; wars; terrorism; civil or
military disturbances; sabotage; epidemics; riots; interruptions, loss or malfunctions of utilities, computer (hardware or
software) or communications service; accidents; labor disputes; acts of civil or military authority or governmental actions;
or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility; it being understood
that Agent (as applicable) shall use its best efforts to resume performance as soon as practicable under the
circumstances.

 

    58

     

    

 

10.3.2   
Agent shall not be liable for any action taken or not taken by it (i) with the consent or at the request of the Required
Lenders (or such other number or percentage of the Lenders or Lenders as shall be necessary, or as Agent shall believe in good
faith shall be necessary, under the circumstances as provided in Sections 9.13) or (ii) in the absence of its own gross negligence
or willful misconduct as determined by a court of competent jurisdiction by final and nonappealable judgment. Agent shall be deemed
not to have knowledge of any Default unless and until notice describing such Default is given to Agent in writing by the Borrower
or a Lender. In the event Agent receives such a notice of the occurrence of a Default, Agent shall promptly notify the Lenders
and take such action with respect to such Default or Event of Default as shall reasonably be directed by the Required Lenders,
provided that, unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such
action, or refrain from taking such action) with respect to such Default as it shall deem advisable in the best interest of the
Lenders.

 

10.3.3   
Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any recital, statement, warranty
or representation (whether written or oral) made in or in connection with this Agreement or any other Loan Document, (ii) the contents
of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence
of any Default, (iv) the value, validity, enforceability, effectiveness, sufficiency or genuineness of this Agreement, any other
Loan Document or any other agreement, instrument or document, (v) the inspection of, or to inspect, the Property (including the
books and records) of any Loan Party or Affiliate thereof, (vi) the satisfaction of any condition set forth in Article 3 or elsewhere
herein, other than to confirm receipt of items expressly required to be delivered to Agent, or (vii) any litigation or collection
proceedings (or to initiate or conduct any such litigation or proceedings) under any Loan Document unless requested by the Required
Lenders in writing and its receives indemnification satisfactory to it from the Lenders.

 

10.3.4    Agent
shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document, writing or other communication (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person. Agent also may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance
with any condition hereunder to the making of any advance of the Term Loan that by its terms must be fulfilled to the
satisfaction of a Lender, Agent may presume that such condition is satisfactory to such Lender unless Agent shall have
received notice to the contrary from such Lender prior to the making of such advance. Agent may consult with legal counsel
(who may be counsel for a Lender), independent accountants and other experts selected by it, and Agent shall not be liable
for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

 

    59

     

    

 

10.4         
Delegation of Duties. Agent may perform any and all of its duties and exercise its rights and powers
hereunder or under any other Loan Document by or through any one or more sub-agents appointed by it. Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or through their respective Related Parties. The exculpatory,
indemnification and other provisions of this Article 10 shall apply to any such sub-agent and to the Related Parties of Agent and
any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities
provided for herein as well as activities as Agent. All of the rights, benefits, and privileges (including the exculpatory and
indemnification provisions) of this Article 10 shall apply to any such sub-agent and to the Related Parties of any such sub-agent,
and shall apply to their respective activities as sub-agent as if such sub-agent and its Related Parties were named herein. Notwithstanding
anything herein to the contrary, with respect to each sub-agent appointed by Agent, (i) such sub-agent shall be a third party beneficiary
under this Agreement with respect to all such rights, benefits and privileges (including exculpatory rights and rights to indemnification)
and shall have all of the rights and benefits of a third party beneficiary, including an independent right of action to enforce
such rights, benefits and privileges (including exculpatory rights and rights to indemnification) directly, without the consent
or joinder of any other Person, against any or all of Loan Parties and the Lenders, (ii) such rights, benefits and privileges (including
exculpatory rights and rights to indemnification) shall not be modified or amended without the consent of such sub-agent, and (iii)
such sub-agent shall only have obligations to the Agent and not to any Loan Party, Lender or any other Person and no Loan Party,
Lender or any other Person shall have any rights, directly or indirectly, as a third party beneficiary or otherwise, against such
subagent. Agent shall not be responsible for the negligence or misconduct of any sub-agents except to the extent that a court of
competent jurisdiction determines in a final and non-appealable judgment that Agent acted with gross negligence or willful misconduct
in the selection of such sub-agents.

 

10.5         
Resignation and Removal of Agent.

 

10.5.1    Agent
may at any time give notice of its resignation to the other Lenders and the Borrower, which resignation shall be effective on
the date set forth in such notice (the “Resignation Effective Date”), provided that the Resignation
Effective Date shall not been earlier than sixty (60) days after Agent gives such notice of resignation . Upon receipt of any
such notice of resignation, (i) the Required Lenders shall have the right, with the prior written consent of the Borrower
(which consent shall not be unreasonably withheld and is not required if an Event of Default has occurred and is continuing
and which consent shall not be unreasonably withheld or delayed), to appoint, as applicable, a successor Agent (which shall
be a Lender or such other Person appointed by the Required Lenders but in no event a Defaulting Lender). If no such successor
Agent shall have been so appointed and shall have accepted such appointment prior to the Resignation Effective Date, then the
retiring Agent may on behalf of the Lenders, appoint a successor Agent whose qualifications and experience in acting as
administrative and collateral agent for multiple lenders under a credit facility is similar to that of the retiring Agent,
and if the retiring Agent does not appoint such a successor Agent, then the two Lenders holding the highest principal amount
of the Term Loan shall serve jointly as successor Agent until a successor Agent is appointed by the Required Lenders, with
the consent of the Borrower, as provided above. Whether or not a successor has been appointed, such resignation by Agent
shall become effective in accordance with such notice on the Resignation Effective Date.

 

10.5.2   
The Required Lenders may by notice in writing to Agent and the Borrower remove the Person then serving as Agent,
which removal shall be effective within thirty (30) days (or such earlier day as shall be agreed by the applicable Required Lenders)
(the “Removal Effective Date”), and, in consultation with the Borrower, appoint a successor Agent. If no such
successor shall have been so appointed by the Required Lenders and shall have accepted such appointment by the Removal Effective
Date, then the two Lenders holding the highest principal amount of the Term Loan shall serve jointly as successor Agent until a
successor Agent is appointed by the Required Lenders, with the consent of the Borrower, as provided above, and such removal shall
become effective in accordance with such notice on the Removal Effective Date.

 

10.5.3   
Effective on the Resignation Effective Date or the Removal Effective Date (as applicable) (i) the retiring or removed
Agent, as applicable, shall be discharged from its duties and obligations as Agent hereunder and under the other Loan Documents
(except that in the case of any collateral security held by Agent on behalf of the Lenders under any of the Loan Documents, the
retiring Agent shall continue to hold such collateral security until such time as a successor Agent is appointed) and (ii) all
payments, communications and determinations provided to be made by, to or through the retiring or removed Agent, as applicable,
shall instead be made by or to each of the Lenders, until such time as the Required Lenders appoint a successor Agent as provided
for above. Upon the acceptance of a successor’s appointment as Agent, as applicable, hereunder, such successor shall succeed
to and become vested with all of the rights, powers, privileges and duties of the retiring or removed Agent, as applicable, and
the retiring or removed Agent, as applicable, shall be discharged from all of its duties and obligations hereunder or under the
other Loan Documents. The fees payable by the Borrower to a successor Agent, as applicable, shall be the same as those payable
to its predecessor unless otherwise agreed between the Borrower and such successor. After the retiring or removed Agent’s
resignation or removal hereunder and under the other Loan Documents, the provisions of this Article 10 and Section 9.19 shall continue
in effect for the benefit of such retiring or removed Agent, as applicable, their respective sub-agents and their respective Related
Parties in respect of any actions taken or omitted to be taken by any of them while the retiring or removed Agent, as applicable,
was acting as Agent, as applicable.

 

10.6          Non-Reliance
on Agent and Other Lenders. Each Lender acknowledges and agrees that it has, independently and without reliance upon
Agent or any other Lender or any of their Related Parties and based on such documents and information as it has deemed
appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges and agrees
that it will, independently and without reliance upon Agent or any other Lender or any of their Related Parties, and based on
such documents and information as it shall from time to time deem appropriate, continue to make its own decisions in taking
or not taking action under or based upon this Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder. Except for notices, reports, and other documents and information expressly required to be
furnished to the Lenders by the Borrower and submitted to Agent for transmission to the Lenders and for other information in
Agent’s or Agent’s possession which has been requested by a Lender and for which such Lender pays Agent’s
expenses in connection therewith, Agent shall not have any duty or responsibility to provide any Lender with any credit or
other information concerning the affairs, financial condition, or business of any Loan Party or any of its Affiliates that
may come into the possession of Agent or Agent’s Related Parties.

 

    60

     

    

 

10.7         
[Intentionally Omitted].

 

10.8         
Agent May File Proofs of Claim. In case of the pendency of any proceeding under any Debtor Relief Law
or any other judicial proceeding relative to any Loan Party, Agent (irrespective of whether the principal of any Loan shall then
be due and payable as herein expressed or by declaration or otherwise and irrespective of whether Agent shall have made any demand
on the Borrower) shall be entitled and empowered (but not obligated) by intervention in such proceeding or otherwise:

 

10.8.1   
to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Term
Loan and all other Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order
to have the claims of the Lenders and Agent (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and Agent and their respective agents and counsel and all other amounts due the Lenders and Agent hereunder) allowed
in such judicial proceeding; and

 

10.8.2   
to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the
same; and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding
is hereby authorized by each Lender to make such payments to Agent, and, in the event that Agent shall consent to the making of
such payments directly to the Lenders, to pay to Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of Agent and its agents and counsel, and any other amounts due to Agent under Section 9.9.

 

10.9         
Collateral and Guaranty Matters. 

 

10.9.1   
Agent (acting at the direction of the Required Lenders) is authorized on behalf of the Lenders, without the necessity
of any notice to or further consent from such Lenders, from time to time, to take any actions with respect to any Collateral or
Security Documents which may be necessary to perfect and maintain the Liens upon the Collateral granted pursuant to the Security
Documents. Agent (acting at the direction of the Required Lenders) is further authorized (but not obligated unless directed by
the Lenders) on behalf of the Lenders, without the necessity of any notice to or further consent from the Lenders, from time to
time, to take any action in exigent circumstances as may be reasonably necessary to preserve any rights or privileges of the Lenders
under the Loan Documents or applicable Laws. By accepting the benefit of the Liens granted pursuant to the Security Instruments,
each Lender hereby agrees to the terms of this paragraph.

 

10.9.2    The
Lenders hereby, and any other Lender by accepting the benefit of the Liens granted pursuant to the Security Documents,
irrevocably authorize Agent to, and Agent shall, upon request of the Borrower release any Lien granted to or held by Agent
upon any Collateral (a) upon termination of this Agreement and the payment in full of the outstanding Term Loan and all other
Obligations (other than contingent indemnity obligations for which no claims have been made); or (b) constituting Property
sold or to be sold or Disposed of as part of or in connection with any Disposition permitted under this Agreement or any
other Loan Document. Upon the request of Agent at any time, the Lenders will confirm in writing Agent’s authority to
release particular types or items of Collateral pursuant to this Section 10.9.2. At the written request and sole expense of
the Borrower, which written request shall also include a certification from a Responsible Officer certifying to the Lenders
and Agent that such release is permitted under this Section 10.9.2 and that such transaction is in compliance with this
Agreement and the other Loan Documents (which certification Agent may, but is not obligated to, rely on), Agent shall
promptly provide the releases of Collateral permitted to be released under this Section 10.9.2 subject to evidence of such
transaction and release documentation reasonably satisfactory to the Required Lenders and Agent.

 

    61

     

    

 

10.9.3   
Notwithstanding anything contained in any of the Loan Documents to the contrary, the Loan Parties, Agent and each
Lender hereby agree that no Lender shall have any right individually to realize upon any of the Collateral or to enforce the Guaranty,
it being understood and agreed that all powers, rights and remedies hereunder, under the Guaranty and under the Security Documents
may be exercised solely by Agent (acting at the direction of the Required Lenders), as applicable, on behalf of the Lenders in
accordance with the terms hereof and the other Loan Documents. By accepting the benefit of the Liens granted pursuant to the Security
Instruments, each Lender not party hereto hereby agrees to the terms of this Section 10.9.3.

 

10.10     
Credit Bidding.

 

10.10.1  Each
of the Lenders hereby irrevocably authorizes Agent, on behalf of the Lenders to take any of the following actions upon the instruction
of the Required Lenders:

 

(a)              
 consent to the Disposition of all or any portion of the Collateral free and clear of the Liens securing the Obligations
in connection with any Disposition pursuant to the applicable provisions of the Debtor Relief Laws, including Section 363 thereof;

 

(b)              
 credit bid all or any portion of the Obligations, or purchase all or any portion of the Collateral (in each case,
either directly or through one or more acquisition vehicles), in connection with any Disposition of all or any portion of the Collateral
pursuant to the applicable provisions of the Debtor Relief Laws, including under Section 363 thereof;

 

(c)              
 credit bid all or any portion of the Obligations, or purchase all or any portion of the Collateral (in each case,
either directly or through one or more acquisition vehicles), in connection with any Disposition of all or any portion of the Collateral
pursuant to the applicable provisions of the UCC, including pursuant to Sections 9-610 or 9-620 of the UCC;

 

(d)              
 credit bid all or any portion of the Obligations, or purchase all or any portion of the Collateral (in each case,
either directly or through one or more acquisition vehicles), in connection with any foreclosure or other Disposition conducted
in accordance with applicable law following the occurrence of an Event of Default, including by power of sale, judicial action
or otherwise; and/or

 

(e)              
 estimate the amount of any contingent or unliquidated Obligations of such Lender;

 

    62

     

    

 

it being understood that
no Lender shall be required to fund any amount (other than by means of offset) in connection with any purchase of all or any portion
of the Collateral by Agent pursuant to subparagraphs 10.10.1.2 to 10.10.1.4 without its prior written consent.

 

10.10.2  Each
Lender agrees that in connection with any credit bid or purchase described under subparagraphs 10.10.1.2 to 10.10.1.4, the Obligations
owed to all of the Lenders (other than with respect to contingent or unliquidated liabilities as set forth in the next succeeding
paragraph) may be, and shall be, credit bid by Agent on a ratable basis.

 

10.10.3  With
respect to each contingent or unliquidated claim that is an Obligation, Agent is hereby authorized, but is not required, to estimate
the amount thereof for purposes of any credit bid or purchase described in Section 10.10.1 so long as the estimation of the amount
or liquidation of such claim would not unduly delay the ability of Agent to credit bid the Obligations or purchase the Collateral
in the relevant Disposition. In the event that Agent, in its sole and absolute discretion, elects not to estimate any such contingent
or unliquidated claim or any such claim cannot be estimated without unduly delaying the ability of Agent to consummate any credit
bid or purchase in accordance with Section 10.10.1, then any contingent or unliquidated claims not so estimated shall be disregarded,
shall not be credit bid, and shall not be entitled to any interest in the portion or the entirety of the Collateral purchased by
means of such credit bid.

 

10.10.4  Each
Lender whose Obligations are credit bid under subparagraphs 10.10.1.2 to 10.10.1.4 shall be entitled to receive interests in the
Collateral or any other asset acquired in connection with such credit bid (or in the Stock of the acquisition vehicle or vehicles
that are used to consummate such acquisition) on a ratable basis in accordance with the percentage obtained by dividing (x) the
amount of the Obligations of such Lender that were credit bid in such credit bid or other Disposition, by (y) the aggregate amount
of all Obligations that were credit bid in such credit bid or other Disposition.

 

10.10.5  Each
Lender hereby agrees that, except as otherwise provided in any Loan Documents or with the written consent of the Required Lenders,
it will not take any enforcement action, accelerate obligations under any Loan Documents, or exercise any right that it might otherwise
have under Law to credit bid at foreclosure sales, UCC sales or other similar Dispositions of Collateral.

 

10.11     
Force Majeure. Agent shall not be (i) required to expend or risk its own funds or otherwise incur any
financial liability in the performance of any of its duties or in the exercise of any of its rights or powers hereunder or under
any other Loan Document or (ii) responsible or liable for any failure or delay in the performance of its obligations hereunder
or under any other Loan Document arising out of or caused, directly or indirectly, by circumstances beyond its control, including
without limitation, any act or provision of any present or future law or regulation or governmental authority; acts of God; earthquakes;
fires; floods; wars; terrorism; civil or military disturbances; sabotage; epidemics; riots; interruptions, loss or malfunctions
of utilities, computer (hardware or software) or communications service; accidents; labor disputes; acts of civil or military authority
or governmental actions; or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility.

 

    63

     

    

 

10.12     
 Agent Actions . With respect to any term or provision of this Agreement or any other Loan Document
that requires the consent, approval, satisfaction, discretion, determination, decision, action or inaction or any similar concept
of or by Agent, or that allows, permits, requires, empowers or otherwise provides that any matter, action, decision or similar
may be taken, made or determined by Agent, including the exercise of any remedies under the Loan Documents and any provision that
refers to any document or other matter being satisfactory or acceptable to Agent, regardless of whether such term or provision
expressly refers to the requirement to obtain consent or input from any Lenders, or to otherwise notify any Lender, or to provide
that such matter is required to be satisfactory or acceptable to the Lenders, such term or provision shall be interpreted to refer
to Agent providing its response or taking any such action only after obtaining consent or approval from the Required Lenders or
such other requisite percentage of the Lenders as required in Section 9.4. Similarly, with respect to any term or provision of
this Agreement or any other Loan Document that requires the consent, approval, satisfaction, discretion, determination, decision,
action or inaction or any similar concept of or by the Lenders, or that allows, permits, requires, empowers or otherwise provides
that any matter, action, decision or similar may be taken, made or determined by the Lenders, including the exercise of any remedies
under the Loan Documents and any provision that refers to any document or other matter being satisfactory or acceptable to the
Lenders, such term or provision shall be interpreted to require consent or approval from the Required Lenders or such other requisite
percentage of the Lenders as required in Section 9.4. In soliciting decisions from Lenders, Agent shall provide a reasonable period
of time, depending on the urgency of the decision to be made. Notwithstanding the foregoing, the consent or approval of the Lenders
is not required for a consent of Agent to an assignment by Lender under Section 9.13, and each Lender has the right to act on its
own with respect to a prepayment of the Term Loan in accordance with Section 2.1.4 and Section 8.3 and with respect to funding
a portion of the Initial Increase and Additional Increase under Sections 2.7.1, 2.7.2 and 2.7.3.

 

10.13     
 Sharing of Payments. If any Lender, directly or through an Affiliate, obtains any payment of any Obligation
of any Loan Party (whether by error, voluntary, involuntary or through the exercise of any right of setoff or the receipt of any
Collateral or “proceeds” (as defined under the applicable UCC) of Collateral) and such payment exceeds the amount such
Lender is entitled to receive in accordance with the provisions of the Loan Documents, such Lender shall share such excess payment
with any other Lenders that received any payment that is less than the amount such Lender is entitled to receive in accordance
with the provisions of the Loan Documents. Any transfer of funds in accordance with the preceding sentence shall be facilitated
by Agent.

 

 

    64

     

    

 

IN WITNESS WHEREOF,
the Borrower and the Lender have caused this Agreement to be duly executed by their respective duly authorized officers as of the
date first above written.

 

	 	 	BORROWER:
	 	 	 
		 	high
                                         street capital partners, llc,
	 	 	a
                                         Delaware limited liability company
	 	 	By:
                                         Acreage Holdings America, Inc.,
	 	 	       a
                                         Nevada corporation, its sole manager
	 	 	 

 

	 	 	By:	 
	 	 	 	Name: Kevin Murphy
	 	 	  	Title: President
	 	 	 	 
	 	 	 	 

 

(signature pages to the Loan Agreement continue
on the following pages)

 

    	 

    	 

    

 

		 	AGENT:
	 	 	 
	 	 	ACQUIOM
                                         AGENCY SERVICES LLC
	 	 	 
	 	 	By:
                                         	                     
	 	 	Name:
                                         [REDACTED – PERSONAL INFORMATION]
	 	 	Title:
                                         [REDACTED – PERSONAL INFORMATION]EX-10.1

 Exhibit 10.1 

SECOND AMENDED AND RESTATED ENTREPRENEUR CLIENT LICENSE AGREEMENT 

THIS SECOND AMENDED AND RESTATED ENTREPRENEUR CLIENT LICENSE AGREEMENT (“License Agreement”), made as of the Effective Date
between Licensee, and Delaware Innovation Space, Inc., a Delaware charitable non-profit nonstock corporation (“DISI”). 

WHEREAS, DISI and Licensee are parties to that certain Amended and Restated Entrepreneur Client License Agreement with an effective date of
June 1, 2020 (collectively as “Original Agreement”) and as of the Effective Date, Licensee and DISI agree that the Original Agreement shall be fully amended and replaced in its entirety by the terms and conditions of this
License Agreement. 
 WHEREAS, DISI is tax-exempt organization described in Section 501(c)(3)
of the Internal Revenue Code formed to encourage the collaboration and development of early-stage or start-up companies with businesses relating to industrial biotechnology, advanced materials, chemical
ingredients, renewable energy, nutrition, and healthcare (the “Participants”) by providing science and business incubator resources with the intent to foster innovation, development and jobs in Delaware (the “Incubator
Program”); and 
 WHEREAS, in furtherance of its tax-exempt purposes, DISI will provide the
Incubator Program to Participants, including the licensing and managing of space, and providing certain other services and programming, as more particularly described herein (collectively “Resources and Shared Facilities”); 

WHEREAS, Licensee is an active Participant in the Incubator Program, and has developed and is executing a business plan in support of
Licensee’s business growth objectives in collaboration with DISI; and 
 WHEREAS, Licensee desires to continue to license the Licensed
Space (as hereinafter defined) and receive Resources and Shared Facilities as a Participant in the Incubator Program, in each case, in accordance with the terms and provisions of this License Agreement; 

WHEREAS, Licensee understands and acknowledges that DISI is a collaborative community designed to foster growth and development of each
Participant, of which Licensee is one, for the ultimate betterment of Delaware and its citizens, and that each Participant agrees to instruct its personnel to adhere to certain guidelines and behaviors in order to foster that growth by being
congenial to other Participants, encouraging and facilitating collaboration to the extent possible, showing respect in communications and the use of Resources and Shared Facilities, and following similar rules of courteous rules of conduct while a
Participant; 
 WHEREAS, all capitalized terms used but not defined herein shall have the meanings set forth on the Addendum to Entrepreneur
Client License Agreement which is attached hereto as Attachment A and incorporated as if fully set forth herein; 
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements in this License Agreement, the parties agree as follows: 
 1. License Grant.
DISI grants to Licensee and Licensee hereby accepts from DISI, a license to use the space or spaces located within building E400 and/or E500 on the Experimental Station campus at 200 Powder Mill Road, Wilmington, Delaware 19803 (the “DISI
Buildings”), the initial location and area allowances of which are as indicated in Attachment A (the “Licensed Space”), together with (i) the rights of ingress thereto and egress therefrom, and (ii) the right to
use the parking spaces in the lot(s) adjacent to the DISI Buildings on a non-reserved basis and to the extent available. Licensee shall have 

  
 Page | 1 

 
exclusive possession and custody of such Licensed Space, subject to Licensee’s continued participation in the Incubator Program and also subject to ingress and egress and other reserved
rights of DISI and its agents (but only to the extent expressly permitted under this License Agreement). DISI shall also make available, and Licensee shall utilize as part of the Incubator Program, some or all of the following additional Resources
and Shared Facilities: 
 (a) Resources and Shared Facilities. DISI will provide to all Participants in the Incubator Program a
centralized reception, and limited administrative services. Other services and facilities will include direct or indirect access to centralized mail handling, certain library and reference materials and standard office equipment (to the extent
identified on Attachment A). Such services and facilities will be made available to Licensee on a shared basis with other occupants of the DISI Buildings, other Participants in the Incubator Program, and others, and, as such, Licensee understands
that DISI will make such services available on a commercially reasonable efforts basis, subject to the procedures and processes developed for shared use. The “Incubator Manager” is defined as the appointed representative of DISI as
identified by the CEO of DISI from time to time. 
 (b) “If Available” Shared Facilities. DISI will provide Licensee on an
“if available” basis the use of conference rooms and shared laboratories within the DISI Buildings. Use of such conference rooms, laboratories and equipment shall be scheduled and reserved according to policies and procedures published and
amended by the Incubator Manager from time to time. 
 (c) Communications Connections. DISI shall provide wiring and jacks for one
(1) telephone and one (1) computer and network hook-up within each lab in the Licensed Space. DISI shall also provide Wi-Fi capability. Licensee shall pay for
any international calls, collect calls or other fees attributable to its respective lines or hook ups. Any replacement or upgrading of equipment or service requested by Licensee shall be at the sole expense of Licensee and shall be made only with
the prior written approval of the Incubator Manager, such approval not to be unreasonably withheld, conditioned or delayed. DISI will provide the wiring for computer network link-up to the wall outlet at no
charge. Licensee shall be responsible for ensuring that Licensee has adequate protection against viruses through the use of its own virus protection on its systems and hardware, and DISI shall have no liability therefor, except to the extent such
liability is based upon or caused by any failure by DISI to materially comply with any applicable federal, state or local laws, regulations or codes. Licensee shall adhere to system and network security protocols and rules provided to Licensee by
DISI and DISI’s network administrator, and Licensee is prohibited from engaging in any violations of system or network security or any reasonable rules DISI or the network administrator may adopt related thereto. Internet access may not be used
in connection with attempts - whether or not successful - to violate the security of a network, service or other system. DISI may disconnect Licensee’s equipment and withhold services if DISI reasonably determines that Licensee’s hardware
or software poses material risk of material harm to the network or another service or system or otherwise violates this provision. If the Incubator Manager determines, in his or her reasonable discretion, that Licensee uses excessive amounts of
bandwidth relative to other occupants of the DISI Buildings, Incubator Manager shall provide Licensee with notice of the same (together with back-up statements or invoices evidencing such excess usage). If
such notice is provided, Licensee and Incubator Manager shall meet to discuss bandwidth usage, which meetings shall occur on an as needed basis based on the sole discretion of DISI, and DISI shall be entitled to apply an additional charge for any
month after the first such meeting in which Licensee uses excessive bandwidth or Licensee shall be required to reduce its usage. Such charge, if any, shall be payable thirty days after invoice therefore. Licensee shall pay all costs to transfer its
phone lines, copy machines and related equipment to Licensee’s system. 
 (d) Utilities. Through the Services Agreement (as
identified in Section 13 below), DISI shall provide Licensee with HVAC, electricity, nitrogen, water, compressed air, vacuum, deionized water, and sewer service for seven days per week of normal office or laboratory use in available locations

  
 Page | 2 

 
as specified by DISI. DISI shall also supply normal refuse (paper, cardboard, aluminum, etc.) disposal during normal business days, Monday through Friday. Normal and reasonable janitorial service
shall be provided by DISI. If the Incubator Manager determines, in his or her reasonable discretion, that Licensee uses excessive amounts of facilities or utilities relative to other occupants of the DISI Buildings, Incubator Manager shall provide
Licensee with notice of the same (together with back-up statements or invoices evidencing such excess usage). If such notice is provided, Licensee and Incubator Manager shall meet to discuss such usage, which
meetings shall occur on a basis determined by DISI throughout the remainder of the term, and DISI shall be entitled to apply an additional charge for any quarter after the first such meeting in which Licensee uses excessive facilities or utilities.
Such charge, if any, shall be payable thirty days after invoice therefore. 
 (e) Damage to Facilities. In the event that any
Resources and Shared Facilities or Licensed Space (collectively “Facilities”), equipment, or any other DISI property is damaged or destroyed through misuse or negligence by Licensee, DISI may make the required repairs or replacement
of damaged property and shall provide Licensee with an invoice representing the reasonable loss to DISI (whether replaced or repaired or otherwise, at the Incubator Manager’s sole discretion), said invoice to be due and payable by Licensee
within thirty (30) days of the date of issuance. In the event that normal maintenance is required for said Facilities, equipment, or DISI property (including due to the ordinary course or as attributable to ordinary wear and tear), Licensee
shall notify the Incubator Manager, who is the sole person authorized to arrange for such service, and the cost for such maintenance shall be solely borne by DISI. The cost for any unauthorized repairs ordered by Licensee shall be borne exclusively
by Licensee. 
 (f) Alterations. Licensee shall not make any modifications, alterations, improvements or installations to the
Facilities which are structural in nature (including modifications to or new connections that tie into the house exhaust system, utility system, or other systems that do not exclusively serve the Licensed Space) without the Incubator Manager’s
prior written consent. Licensee shall have the right to install in, and remove from, the Licensed Space, any modifications, alterations, improvements or installations to the Facilities which are non-structural
in nature, including, without limitation, equipment and/or other tenant improvements that do not constitute fixtures (collectively, “Non-Structural Alterations”) without consent, provided that
any such Non-Structural Alterations do not have a material adverse effect on the structural composition, utility, exhaust or other connections of the Facilities and that Licensee shall repair and restore any
damage or injury to the Facilities caused thereby. All Non-Structural Alterations to the Licensed Space which are now owned or are constructed, installed or otherwise made by Licensee shall be the property of
Licensee throughout the term of this License Agreement and shall be removed by Licensee unless otherwise agreed at the end of the term of this License. 

(g) Environmental. DISI represents, warrants and agrees that Licensee shall have no responsibility for the clean-up and removal of any hazardous substances or hazardous wastes, products or pollutants, including, without limitation, asbestos, oil, petroleum products and their
by-products previously, now and in the future existing on, within or underneath the DISI Buildings except to the extent generated, used or brought onto the applicable DISI Building or Experimental Station
campus by Licensee. 
 2. License Fees; Term. The Term of this License Agreement and Licensee’s obligation to pay a License Fee
(as defined on Attachment A and consisting of monthly cash payments, and additional License Fees, if any) are as provided below and on the Addendum. Licensee shall pay applicable sales, use, or other taxes with respect to all License Fees.

 (a) License Fees. Throughout the Term of the License Agreement, Licensee shall pay the License Fee to DISI in monthly installments
on the first day of each calendar month during the term and any Renewal Term (as defined on Attachment A), in advance, to DISI by check delivered to DISI’s offices at Experimental Station, E500, 200 Powder Mill Road, Wilmington, Delaware
19803, c/or President 

  
 Page | 3 

 
& CEO, unless DISI designates another place or method of payment. The License Fee shall be paid without abatement, deduction, or set off for any reason. If the Term of this License Agreement
includes any partial month, the License Fee for such partial month shall be prorated in accordance with the number of days covered. Notwithstanding anything to the contrary herein, Licensee shall deliver the License Fee for the first month to DISI
upon execution of this License Agreement, and such amount shall be credited to Licensee’s license fee obligation on the Commencement Date (as defined on Attachment A). If Licensee validly exercises its option for the Renewal Term in
accordance with the terms of this Agreement, then the Renewal License Fee payable for such Renewal Term shall be as defined on Attachment A. 

(b) Decommissioning and Cleaning Fee. Upon execution of this Agreement, Licensee shall deliver to DISI a
non-refundable lab Decommissioning and Cleaning Fee (as defined on Attachment A) to provide full decontamination services upon termination of this License Agreement and exit of the Licensee from the Licensed
Space and to prepare the space for the next client. Additional fees apply at the end of the Term of this License Agreement if any radioactive contamination is found and attributable to the Licensee. Costs for any such decontamination would be billed
at cost to and paid by the Licensee above and beyond the Decommissioning and Cleaning Fee, which payment obligation shall survive the term of this License Agreement. 

(c) Term. The Initial Term (as defined on Attachment A) together with the Renewal Term, if properly exercised, shall be the
“Term”. Licensee shall have the option to extend the Initial Term of this License Agreement for the Renewal Term (to the extent set forth in the Addendum), provided written notice of the exercise of said option is furnished to DISI
no later than March 31, 2022 and DISI and Licensee execute an amendment to this License Agreement in accordance with this Section 2 (provided further, however, that the failure to execute such amendment shall not affect the extension of
the Initial Term or the validity of this License Agreement). If Licensee exercises its option pursuant to this Section 2(c), such exercise shall be as to the entire Licensed Space and Licensee shall not be in default under the terms of this
License Agreement. Licensee’s right to exercise such option is subject to provision by Licensee to DISI of a summary of Licensee’s anticipated activities and financial situation during the Renewal Term and other information reasonably
requested by DISI, that (in DISI’s reasonable judgment) meets DISI’s requirements with regard to its objectives and obligations to third parties. Upon request of Licensee, DISI agrees to execute its standard
non-disclosure agreement in connection with information requested by DISI in accordance with the foregoing sentence. Additional renewal terms may be requested by Licensee in the event of special circumstances.
Such requests may be approved in the sole discretion of DISI. If, for any reason, the term of either DuPont Agreement (as defined in Section 13 below) expires or is terminated prior to this License Agreement’s expiration or termination
date, this License Agreement shall terminate on the date of such DuPont Agreements’ expiration or termination (it being understood that Licensee shall not be obligated to pay any additional license fee or other cost arising after such
termination date). 
 (d) Additional License Fees. Unless otherwise agreed to, the cost of any services or resources requested in
writing by Licensee and provided by DISI not indicated in Section 1 above shall be borne by Licensee. Licensee shall be billed separately for said additional services or resources as additional cash license fees, payment for which shall be due
and payable within thirty (30) days of invoice therefore. All such additional license fees shall be reasonable based on the services provided. 

(e) Delinquent Fees; Revocation of License. If Licensee fails to pay any cash License Fees for thirty (30) days or more after such
cash License Fees are due under this License Agreement, DISI, in its sole discretion, may revoke Licensee’s license and/or discontinue the provision of any utilities or services hereunder. Licensee acknowledges that any late payments by
Licensee to DISI of any License Fee or other sums due under this License Agreement will cause DISI to incur costs not contemplated by this License Agreement, the exact amount of such costs being extremely difficult and impractical to fix. Such other
costs include, without limitation, processing, administrative and accounting charges and financing 

  
 Page | 4 

 charges. Accordingly, if any License Fee or any other amount payable by Licensee hereunder is not received
by DISI by the date due, Licensee shall pay to DISI an additional sum of ten percent (10%) of the overdue amount as a late charge, but in no event more than the maximum late charge allowed by law. The parties agree that such late charge represents a
fair and reasonable estimate of the costs that DISI will incur by reason of any late payment. Acceptance of a late charge shall not constitute a waiver of Licensee’s default with respect to the overdue amount or prevent DISI from exercising any
of the other rights and remedies available to DISI under this License Agreement or at law or in equity now or hereafter in effect. However, this provision does not affect any default provisions or DISI’s termination rights under this License
Agreement and does not create an obligation to revoke Licensee’s status in the event of nonpayment or other default by Licensee. 
 (f)
Relocation. During the term of this License Agreement, DISI shall have the right, in its sole discretion, to relocate the Licensed Space to another location within either of the DISI Buildings, provided, however, that
(i) DISI provides Licensee with at least thirty (30) days’ notice of its exercise of such relocation right, (ii) the size, layout and functionality of such relocated space is substantially similar per DISI’s opinion to that
of the initial Licensed Space, and (iii) DISI promptly reimburses Licensee for all reasonable out-of-pocket costs sustained in relocating to the relocated space
(unless DISI and Licensee mutually agree for Licensee to relocate to such relocated space, in which case, such costs shall be borne exclusively be Licensee). Following such relocation, the relocated space shall be deemed to be the “Licensed
Space” for purposes of this License Agreement. 
 3. Termination. Nothing herein shall relieve either party of any
outstanding obligation incurred pursuant to this License Agreement prior to any termination. The Resources and Shared Facilities are provided and licensed hereunder for furthering DISI’s tax-exempt
business purposes of being an incubator and creating jobs in Delaware, which is aided by educating Licensee in successfully completing the Incubator Program Licensee’s business objectives as approved by DISI. 

(a) Not a Lease; Right to Terminate. The parties understand and agree that this License Agreement constitutes a license, not a lease,
and that the relationship of the parties hereunder is that of licensor and licensee, and not that of landlord and tenant. Notwithstanding Section 14 below, if DISI has reason to believe at any time that Licensee is no longer following its
business plan as approved by DISI, then DISI, in its sole discretion (but subject to the provisions of Section 14 below), may review Licensee’s status. If, in DISI’s sole discretion, but after consultation with Licensee,
Licensee’s current status is not in material accord with its business plan, DISI may terminate this License Agreement with thirty (30) days’ prior written notice. 

(b) Default; Notice of Termination. Should either party be in breach of any material terms or conditions stated within this License
Agreement, including but not limited to those stated in Section 5(a), then the other party shall have the right to terminate this License Agreement upon thirty (30) days’ written notice, if the other party does not correct such breach
within the said thirty (30) day period. Notwithstanding the foregoing, in the event that the actions of Licensee or this License Agreement are in violation of the DuPont Agreement Provisions (as defined below), then DISI shall have the right to
terminate this License Agreement immediately upon notice to Licensee. 
 4. Indemnification. Licensee shall at all times during the
term of this License Agreement and thereafter, indemnify, defend, and hold DISI, its board members, officers, employees, and affiliates (hereinafter “Indemnitees”), harmless against all claims and expenses, including legal expenses
and reasonable attorneys’ fees, whether arising from a third party claim or resulting from DISI enforcing this indemnification clause against Licensee, or arising out of the death of or injury to any person or persons or out of any damage to
property and against any other claim, proceeding, demand, expense, or liability of any kind whatsoever resulting from the Licensee’s occupancy or use of the Licensed Space, arising from any 

  
 Page | 5 

 
right or obligation of Licensee hereunder, or arising out of a breach or violation of Licensee of any terms, covenants, or conditions contained herein. This indemnification shall not apply to any
liability, damage, loss, claim, demand, or expense to the extent that it is attributable to the gross negligence or intentional wrongdoing of the Indemnitees. Licensee shall, at its own expense, provide attorneys reasonably acceptable to DISI to
defend against any actions brought or filed against any party indemnified hereunder with respect to the subject of indemnity contained herein, whether or not such actions are rightfully brought. 

5. Insurance. During the term of this License Agreement, Licensee shall, at its sole cost and expense, procure and maintain policies of
comprehensive general liability and other insurance as set forth below naming the Indemnitees as additional insured. 
 (a) Comprehensive
General Liability. The comprehensive general liability insurance shall provide broad form contractual liability coverage for Licensee’s indemnification under this Section 5 in the following minimum amounts: 

(i) comprehensive liability (personal injury, including death): $1,000,000 per occurrence and $2,000,000 general aggregate
limit and; 
 (ii) property damage: insurance covering the replacement value of Licensee’s personal property in the
Licensed Space. 
 (b) Other Insurance. Licensee shall obtain and keep in force all worker’s compensation insurance required
under the laws of the State of Delaware, and such other insurance as may be necessary to protect Indemnitees against any other liability of person or property arising hereunder by operations of law, whether such law is now in force or is adopted
subsequent to the Effective Date. Notwithstanding anything to the contrary, DISI shall have no liability for any loss in connection with Licensee’s personal property. 

(c) Proof of Insurance; Cancellation; Replacement Insurance. Licensee shall provide DISI with written evidence of such insurance prior
to the Commencement Date of this License Agreement, and shall provide DISI with written notice at least forty-five (45) days prior to the cancellation, non-renewal, or material change in such
comprehensive general liability insurance. If Licensee does not obtain replacement insurance providing comparable coverage within such forty-five (45) day period, or provide self-insurance satisfactory to DISI, DISI shall have the right to
terminate this License Agreement. 
 (d) Waiver of Subrogation. Each of the parties hereto hereby releases the other from any and all
liability for any loss or damage covered by such insurance (or which would have been covered if insurance was canceled in accordance with this License Agreement) which may be inflicted upon the property of such party even if such loss or damage
shall be brought about by the fault or negligence of the other party, its agents or employees, and each party agrees that it shall cause its policy of insurance to contain a clause to the effect that this release shall not affect said policy or the
right of the insured to recover thereunder, along with a waiver of the insurer’s rights of subrogation. 
 6. Destruction of Space;
Personal Property; Condemnation. 
 (a) If the Licensed Space is totally destroyed (or so substantially damaged as to be uninhabitable)
by storm, fire, earthquake, or other casualty, this License Agreement shall terminate as of the date of such destruction or damage, and license fees shall be accounted for as between DISI and Licensee as of that date. If the Licensed Space is
damaged but not rendered wholly uninhabitable by any such casualty or casualties, license fees shall abate, as reasonably determined by DISI, in such proportion as the use of the Licensed Space has been destroyed until DISI has restored the Licensed
Space to 

  
 Page | 6 

 
substantially the same condition as before damage, whereupon full license fees shall commence. Nothing contained herein shall require DISI to make such restoration, however, if not deemed
advisable in its judgment. DISI shall make its intentions to restore or not to restore said Licensed Space to original condition known to Licensee in writing, within ninety (90) days of such occurrence. If DISI decides against such
reconstruction or fails to provide such notice, Licensee may, at its option, terminate this License Agreement. Licensee acknowledges that Licensee is solely responsible for any destruction, damage or diminution in value in any way of any personal
property that it owns. 
 (b) If all of or any portion of the Licensed Space (or any portion of the applicable DISI Building that would
materially and adversely affect the use and enjoyment of the Licensed Space by Licensee) is taken by condemnation, then this License Agreement shall terminate and all obligations hereunder shall cease as of the date upon which possession is taken by
the condemnor. 
 7. Maintenance; Survey. The interior of the Licensed Space shall be maintained in its condition as of the
Commencement Date, with normal wear and tear excepted. Prior to the Commencement Date, DISI and Licensee may perform a joint walk-through of Licensed Space and equipment, indicating any unsatisfactory or other notable conditions. A written report of
said walk through, if any, shall be attached hereto and be made also upon termination of this License Agreement. In the event that the facilities incur any loss or damage (other than normal wear and tear), Licensee shall return the Licensed Space to
its original condition to the reasonable satisfaction of DISI. Otherwise, DISI shall make the required repairs or replacement of damaged property and shall provide Licensee with an invoice due and payable in accordance with its terms. Licensee,
under this Section 7, is deemed to have accepted the Licensed Space in the condition existing on the Commencement Date. Licensee is not liable for losses or damage to the Licensed Space, furnishings, or equipment due to any negligent or more
culpable act or omission of DISI or its personnel, including any reckless or willful misconduct, or by a failure by DISI to materially comply with any applicable federal, state or local laws, regulations or codes. Notwithstanding anything to the
contrary contained in this License Agreement, Licensee shall not be obligated to conduct, or bear the cost of conducting, any maintenance or make any repairs to the structural and exterior portions of the DISI Buildings (including, without
limitation, all structural floors, walls, supports and foundations thereof) or the existing heating, ventilation and air conditioning, plumbing and other mechanical systems in the DISI Buildings (it being understood that to the extent such
maintenance and repairs are obligations of DuPont under the DuPont Agreement, DISI agrees to use commercially reasonable efforts to enforce the provisions of the DuPont Agreements). 

8. Interruption of Business. Except as specified in Section 6, DISI shall not be responsible to Licensee for any damages or
inconvenience caused by interruption of business or inability to occupy the Licensed Space or unavailability of any utilities or services for any reason whatsoever, providing that, Licensee shall be credited with the cash license fee on a pro rata
basis for any working day period, if the business interruption is due to circumstances caused by DISI that are not in the normal course of business or that are not a part of normal operating procedures at the DISI Buildings. 

9. No Assignment. This License Agreement is not assignable without the prior written consent of DISI, which consent shall not be
unreasonably withheld, conditioned or delayed, and any attempt to do so shall be void; provided, however, that either party may assign this License Agreement without such consent and upon prior written notice to the other party to one
or more of its affiliates or an entity that acquires all or substantially all of the business or assets of such party to which this Agreement pertains, whether by merger, reorganization, acquisition, sale or otherwise. 

  
 Page | 7 

 10. Qualification for Incubator Program;
Non-Interference; Animal or Human Research; Toxic Materials. 
 (a) Licensee Business;
Reporting. Licensee’s admittance to the Incubator Program is based, in part, on DISI’s review of Licensee’s business concept, objectives, and plans as presented in the DISI license application and related documents. Licensee
agrees it shall provide to the Incubator Manager, not later than thirty (30) days after the end of each calendar year, a written report describing (i) Licensee’s business growth and development, (ii) the number of added employees
and in what job classifications, (iii) average salaries in job classifications, (iv) funding and capital raised, (v) the growth in annual output of product or other capacity measures appropriate to the business, and (vi) such
other agreed upon productivity measures and statistics in order to provide DISI with sufficiently detailed information concerning Licensee’s activities and business progression as a Participant in the Incubator Program to permit DISI to file
any public reports or grant applications necessary to support DISI’s mission and to report to the State of Delaware, DISI’s donors and partners about DISI’s programs and results thereof. DISI acknowledges and agrees that items
furnished to DISI pursuant to this Section 10(a) contain sensitive personal and/or financial material, and DISI agrees to utilize commercially reasonable efforts to keep such information confidential, which may include submitting aggregated
summaries without attribution to a given Participant. 
 (b) Use of Licensed Space. Use of the Licensed Space and other facilities,
furnishings, equipment, and services made available to Licensee by DISI shall be in furtherance of Licensee’s business concept, objectives, and plans, and shall not be in furtherance of any illicit or illegal purposes, or purposes not
consistent with Licensee’s business concept, objectives, and plans. Licensee’s use of the Licensed Space, the Shared Facilities and the equipment, furnishings, and services available under this License Agreement shall not interfere, in any
manner, with use by other licensees or occupants of nearby facilities and equipment. Research involving the use of animals, human subjects, or the use of hazardous or toxic materials by Licensee in the Facilities is not permitted unless consented to
in writing by DISI, and then only in the manner prescribed by DISI. DISI reserves the right to approve in its sole discretion Licensee’s use of the Licensed Space and Shared Facilities, and available equipment, furnishings, and services. 

11. Compliance with DISI Policies; Requirements; Disallowed Chemicals. Licensee shall comply with all applicable DuPont Experimental
Station Site Policies and Procedures, and DISI rules and policies, including policies relating to human and animal subjects, recombinant DNA/RNA practices, biohazards, and radiation safety, as well as federal, state, or local laws, ordinances,
codes, rules, permits, licensing conditions, and regulations, including any amendments thereto (collectively, the “Requirements”), in its use of the Licensed Space, Shared Facilities and shall procure, at its expense, any licenses,
permits, insurance, and government approvals necessary to the operation of its business. Licensee shall not obtain, renew or modify any permit that imposes additional regulatory burdens on Experimental Station operations; provided,
however, that this sentence shall not preclude Licensee from obtaining, renewing or modifying any permits that may impose additional minor regulatory burdens on DISI or the Licensed Space. Licensee is responsible for the safe management and
disposal of all chemicals/bioactives at all times, including upon termination of this License Agreement. Licensee acknowledges that the chemicals listed on Attachment B are not allowed at any time on the Licensed Space or the DISI Buildings. The
Incubator Manager shall have the authority to update and revise Attachment B from time to time, provided, however, that any such change shall not materially impact Licensee’s activities in the Licensed Space unless such change is
necessary for the health, safety, or legal compliance. The Incubator Manager shall provide Licensee with notice of any such change. 
 12.
DISI Approval of Lab Use and Operations; PHA and SOP. Any new equipment or process to be used or implemented by Licensee in the DISI Buildings shall first be required to comply with a Process Hazard Analysis (“PHA”) and
Standard Operating Procedure (“SOP”) review by Incubator Manager. Client agrees to supply such documentation to Incubator Manager prior to such review and such operations can commence only after approval by the Incubator Manager.
Licensee also acknowledges and agrees that DISI may perform routine lab audits and assessments at any time in order to ensure safe operations. 

  
 Page | 8 

 13. Control of Facilities. Notwithstanding anything to the contrary herein, DISI
reserves the right at all times to control all Facilities licensed hereunder, and to enforce all applicable necessary laws, rules, and regulations. Notwithstanding the foregoing, Licensee acknowledges that DISI’s rights to the DISI Buildings
are subject to all matters of record and that certain Lease Agreement between DISI and E.I. du Pont de Nemours and Company (“DuPont”) dated July 1, 2017 (as to the E400 building), that certain Land Lease Agreement between DISI
and DuPont dated July 1, 2017 (as to the E500 land), and that certain Services Agreement dated July 1, 2017 between DISI and DuPont (as to utilities and services at the Experimental Station) (collectively, the “DuPont
Agreements”), which impose certain requirements on the use and operations of the DISI Buildings, including the matters set forth on the attached Attachment C (“DuPont Agreement Provisions”). This License Agreement is
subject and subordinate to the terms of the DuPont Agreement Provisions. DISI represents and warrants to Licensee that (i) the granting of this License and the terms of this License Agreement are not prohibited by and do not conflict with the
terms and provisions of either of the DuPont Agreements or any matters of record, and (ii) no event has occurred or is continuing which, with the passage of time or the giving of notice, or both, would constitute a default by DISI under either
or both of the DuPont Agreements. 
 14. Business Plan Review. At the request of DISI, but not more frequently than at three-month
intervals, Licensee agrees to review its current and prospective business plan and activities with DISI. Progress may be monitored in relation to the previous most recent plans, including an agreed next milestone, which have been reviewed and
approved in writing by both Licensee and DISI. 
 15. Locks. DISI will install all locks attached to the Licensed Space and provide
two keys for each lock to Licensee. DISI will have keys to all locks, and may enter the Licensed Space at reasonable times, for inspection, maintenance or repair, or for any other necessary reason. Entry for other than normal maintenance and
inspection activities shall be preceded by appropriate notice to Licensee. In the event of an emergency, notice will be given at the first reasonable opportunity, even after the fact. Licensee shall not change locks or copy keys without DISI’s
prior written consent. 
 16. Background Check and Number of Authorized Personnel. 

(a) Background Check. Licensee shall enable and DISI shall perform background checks on all of its employees, agents or representatives
who require routine access to the Experimental Station, to confirm that each employee has no noted discrepancies in each of the following: Criminal Background Check (CBC): Prothonotary’s Office / County Courthouse search of criminal records for
the past seven (7) year period (misdemeanor & felony); National File Search / Multi-State File Search; Legal Authorization to work (I-9, E-Verify); and
Social Security Number verification and Validation. As a condition to obtaining entry or access to any part of the DISI Buildings and the Experimental Station on a routine basis, Licensee and each of Licensee’s employees, contractors, agents or
representative must complete an application and, to DISI’s sole satisfaction, pass any background check required by the Incubator Manager. It is anticipated that the background check process will be a
one-time requirement for each employee as long as the License Agreement is in effect and the employee maintains continuous employment with the Licensee during the course of this License Agreement. Licensee and
DISI agree to comply with all applicable federal, state, and local laws regarding background checks. 
 (b) Number of Authorized
Personnel. All personnel who will be in the Licensed Space on a routine basis, and not classified as a visitor, are required to have security badge following the successful completion of the background check. Licensee shall be authorized to have
badged personnel on the Experimental Station campus or in the Licensed Space, but the number of Licensee’s badged personnel shall not exceed its Badge Allocation (as defined in the Addendum) at any one time. 

  
 Page | 9 

 17. Right to Remove Property. Unless in default of contract, Licensee shall have the
right to remove any equipment, goods, fixtures, and other property which it owns and has placed or affixed within or to the Licensed Space, provided Licensee repairs damage caused by such removal. Licensee shall not remove improvements made to the
facilities or Licensed Space by DISI or on behalf of DISI during this License Agreement. 
 18. Use of Names and Other Matter.
Licensee shall not use the names of DISI or its employees or agents, nor any adaptation thereof, in any way including press releases, advertising, promotional, or sales literature without prior written consent obtained from DISI in each case.
Notwithstanding the foregoing, DISI and Licensee may refer to Licensee as a “licensee” of the Licensed Space and a Participant in connection with DISI’s Incubator Program and DISI may publish such announcements in DISI publications
and on its website. Licensee may publish on its website that Licensee is a Participant in the Incubator Program for so long as it is an active participant and paying monthly license fees as specified herein this License Agreement. Licensee shall
provide DISI with a brief written description of Licensee’s business that DISI can use and adapt for DISI’s publications. Except as expressly provided in this Section, Licensee shall not use, in any manner, without DISI’s prior
express written consent and approval of the format: (i) DISI’s logo, name, nor that of the DISI Buildings’, or (ii) any photographs of the premises, the buildings or the Licensed Space. 

19. No Partnership; Agency. Nothing contained in this License Agreement shall create any partnership or joint venture between the
parties, nor an agency relationship. Neither party may pledge the credit of the other or make any binding commitment on the part of the other. 

20. Miscellaneous. This License Agreement shall not be subject to any change or modification except by the execution of a written
instrument subscribed to by the parties hereto. The provisions of this License Agreement are severable, and in the event that any provisions of this License Agreement shall be determined to be invalid or unenforceable under any controlling body of
the law, such invalidity or unenforceability shall not in any way affect the validity or enforceability of the remaining provisions hereof. The titles herein are for convenience only. This License Agreement, including all attachments hereto, and all
matters arising out of or relating to this License Agreement, whether sounding in contract, tort or statute, shall be construed, governed, interpreted, and applied in accordance with the laws of the State of Delaware, without giving effect to the
conflict of laws provisions thereof. This License Agreement and any other documents incorporated herein by reference and all related exhibits and schedules, constitutes the sole and entire agreement of the parties to this License Agreement with
respect to the subject matter contained herein and therein and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter. 

21. Notices. All notices required or permitted hereunder shall be given in writing and sent by either: (a) mailed, postage prepaid
by certified or registered mail; (b) sent by a nationally recognized express courier or hand delivery; or (c) electronic mail to the address listed below. Any written notice shall be deemed made upon receipt by the receiving party, in the
case of mailing, or immediately in the case of electronic mail. 
 In the case of DISI: 

Delaware Innovation Space, Inc. 

200 Powder Mill Road 
 P.O. Box
8354 
 Experimental Station, E500 

Wilmington, Delaware 19803 
 Attn:
President & CEO 

  
 Page | 10 

 In the case of Licensee to Licensee’s Address for Notice (as set forth in the
Addendum). 
 22. Dispute Resolution. 

(a) The parties shall resolve any dispute, controversy or claim arising out of or relating to this License Agreement, or the breach,
termination or invalidity hereof (each, a “Dispute”), under the provisions of this Section 22. The procedures set forth in this Section 22 shall be the exclusive mechanism for resolving any Dispute that may arise from time
to time. 
 (b) The parties hereby agree that, in the event of any Dispute between the parties, the parties shall first seek to resolve the
Dispute through informal discussions. If the Dispute has not been resolved through informal discussions within sixty (60) calendar consecutive days after one party provides written notice to the other party of such Dispute, then either party
may initiate mediation as provided in the following paragraph (b). 
 (c) If the Dispute has not been resolved by negotiation as provided in
paragraph (a) above, the parties shall endeavor to settle the Dispute by mediation under the Center for Public Resources (“CPR”) Model Procedure for Mediation of Business Disputes in effect at such time; provided,
however, that the parties hereby acknowledge and agree that the mediation shall be deemed in the nature of settlement discussions and that neither the fact that the mediation took place nor any statement or conduct of any participant in such
mediation shall be admissible into evidence and any subsequent litigation or any arbitration or other dispute resolution proceeding involving the Parties, and any disclosure in any form, including oral, by any person participating in such mediation
shall not operate as a waiver of any privilege, including attorney work product or attorney client privilege. 
 (d) The neutral third-party
mediator will be selected from the CPR Panels of Neutrals, with the assistance of CPR, unless the parties agree otherwise. 
 (e) In the
event the parties have not resolved the Dispute pursuant to Sections 22(a) and (b) above by such mediation within thirty (30) days after the submission to the mediator, the Dispute shall be submitted to a panel of three
(3) arbitrators for arbitration to be administered by the American Arbitration Association under the then-current Commercial Arbitration Rules of the American Arbitration Association. The decision of the arbitrators with respect to such Dispute
shall be final and binding upon the parties and may be entered by any court having jurisdiction hereunder. Except as expressly set forth herein, the arbitrators shall have no power or authority to award, and each of the parties expressly waives and
foregoes any right to, consequential, punitive, special or indirect damages. 
 (f) The parties agree to share equally the costs and
expenses of the mediation (which shall not include the expenses incurred by each party for its own legal representation in connection with the mediation). 

23. Non-Discrimination. Licensee shall not discriminate on the basis of race, color, national
origin, handicap, age, religion, or sex in connection with its use or occupancy of the Licensed Space or in connection with any improvements thereto. 

24. Effect of License Agreement. The recitals of this License Agreement are incorporated herein. Pursuant to the terms of the recitals,
this License Agreement fully amends and replaces the Original Agreement as of the Effective Date of this License Agreement. As such, the parties hereby acknowledge that the terms of the Original Agreement remain in effect prior to the Effective
Date, and as of the Effective Date, the terms of this License Agreement shall control. 

  
 Page | 11 

 [Signature page follows.] 

  
 Page | 12 

 IN WITNESS THEREOF, the parties have executed this Second Amended and Restated License
Agreement as of the Effective Date. 
  

			
	Delaware Innovation Space, Inc.
		
	By:	 	 /s/ William D. Provine

		 	William D. Provine, Ph.D.
		 	President and Chief Executive Officer
	
	Date 11/1/2020

  

			
	Prelude Therapeutics, Inc.
		
	By:	 	 /s/ Krishna Vaddi

		 	Krishna Vaddi, DVM, Ph.D.
		 	Chief Executive Officer
	
	Date 11/1/2020

 [Signature Page to Entrepreneur Client License Agreement] 

  
 Page | 13 

 ATTACHMENT A 

ADDENDUM TO SECOND AMENDED AND RESTATED ENTREPRENEUR CLIENT LICENSE AGREEMENT 

THIS ADDENDUM TO SECOND AMENDED AND RESTATED ENTREPRENEUR CLIENT LICENSE AGREEMENT (“Addendum”) is attached to and
incorporated into that certain Second Amended and Restated Entrepreneur Client Services Agreement (“License Agreement”) so that all terms set forth in this Addendum are part of the License Agreement. 

Unless otherwise defined herein, all capitalized terms used in this Addendum shall have the meanings ascribed to them in the License
Agreement. In the event of any conflict between this Addendum and the License Agreement, this Addendum shall control. 
 The following terms
as used in the License Agreement shall have the meanings set forth below: 
 1. “Effective Date” shall mean November 1st, 2020 
 2. “Licensee” shall mean Prelude Therapeutics, Inc., a Delaware
corporation 
 3. “Licensed Space” shall mean the space identified below in Buildings 400 and 500 (as noted below): 

 

					
	 Lab/Office
	  	 Type
	  	 
	E400-3200	  	Open Office Area	  	
	E400-3213	  	Team Room	  	
	E400-3214	  	Private Lab	  	
	E400-3215	  	Team Room	  	
	E400-3220	  	Private Lab	  	
	E400-3226	  	Private Lab	  	
	E400-3232	  	Private Lab	  	
	E400-3238	  	Private Lab	  	
	E400-3244	  	Private Lab	  	
	E400-3246	  	Private Lab	  	
	E400-3253	  	Team Room	  	
	E400-3255	  	Team Room	  	
	E400-3257	  	Private Office	  	
	E400-3259	  	Private Office	  	
	E400-3263	  	Conference Room	  	
	E400-3265	  	Conference Room	  	
	E400-3204	  	Private Lab	  	
	E400-3212	  	Private Lab	  	
	E400-3552/3552A	  	Team Room	  	
	E400-3205	  	Private Lab	  	
	E400-3207	  	Private Lab	  	
	E400-3407	  	Private Lab	  	
	E400-3425	  	Private Lab	  	
	E400-3443/3443A	  	Private Lab	  	
	E400-Cubicle 1	  	Cubicle	  	
	E400-Cubicle 2	  	Cubicle	  	

  
 Page | A-1 

					
	E400-Cubicle 3	  	Cubicle	  	
	E400-Cubicle 4	  	Cubicle	  	
	E400-Cubicle 5	  	Cubicle	  	
	E400-Cubicle 6	  	Cubicle	  	
	E400-Cubicle 7	  	Cubicle	  	
	E400-Cubicle 8	  	Cubicle	  	
	E400-Cubicle 9	  	Cubicle	  	
	E400-Cubicle 10	  	Cubicle	  	
	E400-Cubicle 11	  	Cubicle	  	
	E400-Cubicle 12	  	Cubicle	  	
	E500-2403	  	Private Lab	  	
	E500-2403A	  	Private Office	  	
	E500-2403B	  	Semi-Private Office	  	

 4. “License Fee” shall mean as set forth below for the term and any renewal term: 

 

					
	 Time Period
	  	Monthly Fee (due on the 1st of each month)	 
	 November 1, 2020 – December 31, 2022
	  	$	114,450	 

 5. “Commencement Date” shall mean November
1st, 2020 
 6. The initial term of the License Agreement shall be twenty-six (26) months, commencing on the Commencement Date and terminating on December 31st, 2022 (the “Initial Term”). 

7. The renewal term shall mean twelve (12) months commencing on January 1, 2023 and expiring on December 31, 2023 (the
“Renewal Term”). Licensee’s exercise of option for the Renewal Term must be in compliance with the terms and conditions of Section 2(c) of the License Agreement. 

8. The “Renewal License Fee” shall be the License Fee payable by Licensee in December 2022 increased by five percent (5%),
which Renewal License Fee shall be payable by Licensee each month during the Renewal Term. 
 9. “Badge Allocation” shall
mean 70 badged personnel 
 10. “Decommissioning and Cleaning Fee” shall be mean $6,000 

11. “Licensee’s Address for Notice” shall mean: 

Prelude Therapeutics Incorporated 

200 Powder Mill Road 

Experimental Station, E400 

Wilmington, Delaware 19803 

Attn: Chief Executive Officer Krishna Vaddi 

E-mail: 

with copy to: 

  
 Page | A-2 

 12. Right of First Offer. 

(a) Provided that Licensee is not in default under the terms of this License Agreement, Licensee shall have a right of first offer
(“ROFO”) in connection with any licensable space on the third floor of E400 that becomes vacant prior to October 31, 2021 (“Available ROFO Space”). If Landlord extends the term of occupancy for any existing
occupant of the third floor of E400, such space shall not be deemed Available ROFO Space as long as the term of such extension does not extend beyond October 31, 2021. In the event Licensor intends to market Available ROFO Space, Licensor shall
provide written notice thereof to Licensee (the “Notice of Availability”), specifying the principal terms and conditions of a proposed license to Licensee of the Available ROFO Space, which terms and conditions shall consistent with
the terms of this License Agreement with an increase to the License Fee (subject to the terms of this Section 12(a)) and Decommissioning and Cleaning Fee in light of the additional licensed space. Notwithstanding anything to the contrary
herein, the License Fee payable by Licensee for licensed space on the third floor of E400 shall not exceed $145,000 per month at any time during the Term. Additional license fees will be due for any licensed space in other parts of the DISI
Buildings, including areas that are Licensed Space under this Agreement, for example, but not limited to lab and office space in E500. For example, if Licensee acquires a license to all of the licensable space on the third floor of E400 and there is
otherwise no change to the Licensed Space as defined in this Agreement, then the total License Fee payable per month by Licensee shall be $145,000 for the Licensed Space on the third floor of E400 plus $8,000 for the License Space located on the 2nd floor of E500 for a total of $153,000. 
 (b) Within fifteen (15) days following its
receipt of a Notice of Availability, Licensee shall advise Licensor in writing whether Licensee elects to license all (not just a portion) of the Available ROFO Space on the terms and conditions set forth in the Notice of Availability. If Licensee
fails to notify Licensor of Licensee’s election within such fifteen (15) day period, then Licensee shall be deemed to have elected not to license the Available ROFO Space. 

(c) If Licensee timely notifies Licensor that Licensee elects to license all of the Available ROFO Space on the terms and conditions set forth
in the Notice of Availability (“Licensee’s Acceptance”), then Licensor shall license to Licensee and Licensee shall license from Licensor the Available ROFO Space on the terms and conditions set forth in the Notice of Availability
and, to the extent not inconsistent therewith, the terms contained in this License Agreement. 
 (d) If (i) Licensee notifies Licensor
that Licensee elects not to license the Available ROFO Space, (ii) Licensee fails to notify Licensor of Licensee’s election within the fifteen (15)-day period described above or (iii) Licensor
and Licensee do not execute a new license amendment to this License Agreement for the Available ROFO Space within thirty (30) days after Licensee’s Acceptance, then Licensor shall have the right to consummate a license of the Available
ROFO Space specified in the Notice of Availability on any terms and conditions that Licensor deems acceptable. 
 (e) Licensor agrees to use
commercially reasonable efforts to relocate existing occupants of the third floor of E400 no later than November 1, 2021. As consideration for the ROFO provided herein and to help defray costs of Licensor in connection with relocating the
existing occupants, Licensee shall deliver to Licensor on the Effective date a one-time payment in the amount of $150,000.00 (the “ROFO Payment”). Licensor shall have no obligation to refund
any portion of the ROFR Payment to Licensee under any circumstances. 

  
 Page | A-3 

 [End of Addendum] 

  
 Page | A-4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00316-of-00352.parquet"}]]