Document:

Exhibit 10.32

 

UNDERWRITING AGREEMENT

 

June 16, 2020

 

Charlotte’s Web Holdings, Inc.

1600 Pearl Street, Suite 300

Boulder, CO 80302

 

Attention: Adrienne Elsner and Russell Hammer

 

Ladies and Gentleman:

 

The undersigned, Canaccord Genuity Corp. (the
 “Lead Underwriter”), as lead underwriter, Cormark Securities Inc., Eight Capital and PI Financial Corp. (together with
the Lead Underwriter, the “Underwriters” and each individually an “Underwriter”), hereby severally,
and not jointly and severally, offer and agree to purchase from Charlotte’s Web Holdings, Inc. (the “Company”),
and the Company hereby agrees to issue and sell to the Underwriters, an aggregate of 10,000,000 units (each an “Initial Unit”
and collectively, the “Initial Units”) of the Company, at the purchase price of $6.75 per Initial Unit (the “Purchase
Price”), for aggregate gross proceeds of $67,500,000, upon and subject to the terms and conditions contained herein (the “Offering”).
Each Initial Unit shall consist of one common share in the capital of the Company (each an “Initial Share” and collectively,
the “Initial Shares”) and one-half of one common share purchase warrant of the Company (each whole common share purchase
warrant being an “Initial Warrant” and collectively, the “Initial Warrants”). The Initial Units, Initial
Shares and Initial Warrants shall have the material attributes described in and contemplated by the Prospectus (as defined below).

 

Subject to the terms
and conditions set out in this underwriting agreement (this “Agreement”), the Underwriters propose to distribute
the Initial Units and, if any, the Additional Units (as defined below), in the Qualifying Jurisdictions (as defined below) pursuant to
the Prospectus and in the United States in compliance with the exemption from registration provided by Rule 144A (as defined below).

 

Upon and subject
to the terms and conditions herein set forth and in reliance upon the representations and warranties herein contained, the Company hereby
grants to the Underwriters, in the respective percentages set out in Section 24 of this Agreement, an option (the “Over-Allotment
Option”) to purchase up to 1,500,000 additional units of the Company (each an “Additional Unit” and collectively,
the “Additional Units”) at a price equal to the Issue Price, that is exercisable on or before 5:00 p.m. (Toronto
time) on the date that is 30 days after the Closing Date (as defined below). Each Additional Unit shall consist of one common share in
the capital of the Company (each an “Additional Share” and collectively the “Additional Shares”)
and one-half of one common share purchase warrant of the Company (each whole common share purchase warrant being an “Additional
Warrant” and collectively the “Additional Warrants”). The Over-Allotment Option may be exercised by the Underwriters
in respect of: (i) Additional Units at the Issue Price; or (ii) Additional Shares at a price of $6.34 per Additional Share;
or (iii) Additional Warrants at a price of $0.82 per Additional Warrant; or (iv) any combination of Additional Shares and/or
Additional Warrants so long as the aggregate number of Additional Shares and Additional Warrants that may be issued under the Over-Allotment
Option does not exceed 1,500,000 Additional Shares and 750,000 Additional Warrants. The Over-Allotment Option is exercisable in whole
or in part at any time and up to and including the date that is 30 days following the Closing Date. If the Lead Underwriter, on behalf
of the Underwriters, elects to exercise the Over-Allotment Option, the Lead Underwriter shall notify the Company in writing not less than
48 hours prior to the Over-Allotment Option Closing Date (as defined herein), which notice shall specify the aggregate number of Additional
Units or Additional Shares and/or Additional Warrants to be purchased by the Underwriters, the date on which such Additional Units or
Additional Shares and/or Additional Warrants are to be purchased and the names and denominations in which the Additional Units or Additional
Shares and/or Additional Warrants are to be registered (the “Over-Allotment Option Notice”). The date of any such purchase
may be the same as the Closing Date, but not earlier than the Closing Date nor later than 35 days following the Closing Date.

 

    

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Unless the context
otherwise requires or unless otherwise specifically stated, all references in this Agreement to (i) the “Offering”
shall be deemed to include the Over-Allotment Option, (ii) the “Offered Units” shall mean, collectively,
the Initial Units and the Additional Units, (iii) the “Shares” shall mean, collectively, the Initial Shares and
the Additional Shares, and (iv) the “Warrants” shall mean, collectively, the Initial Warrants and the Additional
Warrants.

 

The Underwriters understand that the Company intends
to allocate $6.34 of the Issue Price as consideration for the issue of each Share and $0.41 of the Issue Price as consideration for the
issue of each one-half Warrant.

 

The Warrants shall be created and issued pursuant
to a warrant indenture (the “Warrant Indenture”) to be dated as of the Closing Date between the Company and Odyssey
Trust Company, in its capacity as warrant agent thereunder. Each Warrant will entitle the holder thereof to acquire one common share in
the capital of the Company (each a “Warrant Share” and collectively the “Warrant Shares”) at a price
of $8.50 per Warrant Share, for a period of 24 months from the Closing Date.

 

		Section 1	Definitions
                                            and Interpretation

 

		(1)	For the purposes of this Agreement, unless the context otherwise requires, the following terms shall have
the respective meanings set out below and grammatical variations of such terms shall have corresponding meanings:

 

“1933 Act” means
the United States Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder;

 

“Additional Share”
or “Additional Shares” has the meaning given to it above;

 

“Additional Unit”
or “Additional Units” has the meaning given to it above;

 

“Additional Warrant”
or “Additional Warrants” has the meaning given to it above;

 

“affiliate” has the
meaning given to it in National Instrument 45-106 – Prospectus Exemptions;

 

“Agreement” has the
meaning given to it above;

 

“Applicable Indemnifier”
has the meaning given to it in Section 20(2);

 

“Arrangement Agreement”
means the arrangement agreement between Abacus Health Products, Inc. and the Company dated March 22, 2020, as it may be amended
from time to time in accordance with its terms;

 

“articles” means
the articles of the Company;

 

“Business Day” means
any day, other than a Saturday or Sunday, on which chartered banks in Toronto, Ontario and Calgary, Alberta are open for business;

 

“Canadian Securities Laws”
means, collectively, all applicable securities laws in each of the Qualifying Jurisdictions, as applicable, and the respective rules,
regulations, blanket orders and rulings under such laws together with applicable published policies, policy statements, instruments and
notices of the Canadian Securities Regulators;

 

“Canadian Securities Regulators”
means the applicable securities commission or securities regulatory authority in each of the Qualifying Jurisdictions and “Canadian
Securities Regulator” means any one of them;

 

    

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“Charlotte’s Web, Inc.”
means Charlotte’s Web, Inc., a Delaware corporation, a wholly owned subsidiary of the Company;

 

“Claims” has the
meaning given to it in Section 20(1)(a);

 

“Closing” means the
completion of the sale by the Company, and the purchase by the Underwriters, of the Offered Units pursuant to this Agreement;

 

“Closing Date” means
June 18, 2020, or such other date as the Company and the Underwriters may agree upon in writing or as may be changed pursuant to
Section 11, which in any event shall not be later than July 28, 2020;

 

“Closing Time” means
8:00 a.m. (Toronto time) on the Closing Date;

 

“Company” has the
meaning given to it above;

 

“Company Group” means,
collectively the Company and Charlotte’s Web, Inc.;

 

“Company Group Contracts”
has the meaning given to it in Section 9(1)(x)Section 9(1)(w);

 

“comparables” has
the meaning given to it in NI 41-101;

 

“distribution” has
the meaning given to it in the Securities Act (Ontario);

 

“Employee Plans”
means any (i) pension, retirement, deferred compensation, savings, profit-sharing, stock option, stock purchase, bonus, incentive,
vacation pay, severance pay, supplemental unemployment benefit, employee assistance, death benefit or other employee or post-retirement
benefit plan, trust, arrangement, contract, agreement, policy or commitment from which present or former employees, officers and directors,
individuals working on contract with any member of the Company Group or individuals providing services to the Company Group of a kind
normally performed by employees benefit or have the potential to benefit, or (ii) group or individual insurance policy or coverage
(including self-insured coverage) for accident and sickness or life insurance (including any individual insurance policy under which any
present or former employee, officer or director of any member of the Company Group is the named insured and as to which the Company Group
makes premium payments, whether or not a member of the Company Group is the owner, beneficiary or both of that policy), or other insured
or covered expense reimbursement coverage, from which present or former employees, officers or directors of any member of the Company
Group benefit or have the potential to benefit;

 

“Environmental Laws”
has the meaning given to it in Section 9(1)(bbb);

 

“Final Base Shelf Prospectus”
means the (final) short form base shelf prospectus of the Company dated April 8, 2019 relating to the distribution of up to $500,000,000
of common shares and other securities of the Company specified therein including, for greater certainty, the documents incorporated by
reference or deemed to be incorporated by reference therein (which shall include the Prospectus Supplement as of its date for the purposes
of distribution of the Offered Units);

 

“Final Offering Documents”
means the Prospectus, the U.S. Offering Memorandum and, for the purposes of the Company’s representations in Section 9 include
those documents required to be incorporated by reference into the Prospectus Supplement and which have, on or prior to the date hereof,
been filed by the Company on SEDAR;

 

“Financial Information”
means the Financial Statements, the MD&A, the information under the heading “Consolidated Capitalization” in the Prospectus
Supplement and the information under the headings “Consolidated Capitalization” and “Earnings Coverage Ratios”
contained in the Final Base Shelf Prospectus;

 

    

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“Financial Statements”
means (i) the audited financial statements of the Company as of December 31, 2019 and December 31, 2018 together with the
notes and the auditors’ report thereon; (ii) unaudited interim condensed consolidated financial statements of the Company for
the three months ended March 31, 2020 and 2019; (iii) the audited financial statements of Abacus Health Products, Inc.
as of December 31, 2019 and 2018, together with the notes and the auditor's report thereon; (iv) unaudited interim condensed
consolidated financial statements of Abacus Health Products, Inc. for the three months ended March 31, 2020 and 2019; and any
other financial statements incorporated by reference in the Prospectus;

 

“Governmental Authority”
means governments, regulatory authorities, governmental departments, agencies, stock exchanges, commissions, bureaus, officials, ministers,
crown corporations, courts, bodies, boards, tribunals or dispute settlement panels or other law, rule or regulation-making organizations
or entities (i) having or purporting to have jurisdiction on behalf of any nation, province, territory or state or any other geographic
or political subdivision of any of them, or (ii) exercising, or entitled or purporting to exercise any administrative, executive,
judicial, legislative, policy, regulatory or taxing authority or power;

 

“Governmental Licenses”
has the meaning given to it in Section 9(1)(uu);

 

“IFRS” means International
Financial Reporting Standards, as issued by the International Accounting Standards Board and as adopted by the Canadian Institute of Chartered
Accountants;

 

“Indemnified Party”
and “Indemnified Parties” have the respective meanings given to them in Section 20(1);

 

“Initial Share” or
 “Initial Shares” has the meaning given to it above;

 

“Initial Unit” or
 “Initial Units” has the meaning given to it above;

 

“Initial Warrant”
or “Initial Warrants” has the meaning given to it above;

 

“Intellectual Property”
has the meaning given to it in Section 9(1)(rr);

 

“Issue Price” has
the meaning given to it above;

 

“Knowledge” means
the actual knowledge of Adrienne Elsner and Russell Hammer after reasonable enquiry;

 

“Lead Underwriter”
has the meaning given to it above;

 

“Leased Properties”
has the meaning give to it in Section 9(1)(ww);

 

“Leases” has the
meaning given to it in Section 9(1)(ww);

 

“Legacy Stock Option Plan”
means the stock option plan of the Company;

 

“Lien” means any
mortgage, charge, pledge, hypothec, claim, security interest, assignment, lien (statutory or otherwise), defect, restriction on transfer,
restrictive covenant or other encumbrance of any nature, including any arrangement or condition which, in substance, secures payment or
performance of an obligation, or any contract or agreement to create any of the foregoing;

 

    

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“LTIP” means the
2018 Long-Term Incentive Plan of the Company;

 

“marketing materials”
has the meaning given to it in NI 41-101;

 

“Marketing Materials Amendment”
means any revised template version of any marketing materials provided to potential investors in connection with the distribution of the
Offered Units;

 

“Material
Adverse Effect” or “Material Adverse Change” means any fact, effect, change, event, occurrence, or
any development involving a change, that (i) is or is reasonably likely to be materially adverse to the results of operations, financial
condition, assets, properties, capital, liabilities (contingent or otherwise), cash flows, income or business operations of the Company
Group and as a going concern, or (ii) would result in any Offering Document containing a misrepresentation;

 

“material
change” has the meaning given to it in the Securities Act (Ontario);

 

“material
fact” has the meaning given to it in the Securities Act (Ontario);

 

“MD&A”
means the Company’s management’s discussion and analysis for (i) the year ended December 31, 2019 and
(ii) for the three and nine months ended March 31, 2020, each as filed by the Company on SEDAR;

 

“MI
11-102” means Multilateral Instrument 11-102 – Passport System;

 

“misrepresentation”
has the meaning given to it in the Securities Act (Ontario);

 

“Name
and Likeness Agreement” means the name and likeness license agreement dated August 1, 2018 between Leeland &
Sig LLC, CWB Holdings, Inc. and the Company;

 

“NCI
System” has the meaning given to it in Section 15(2);

 

“NI
41-101” means National Instrument 41-101 – General Prospectus Requirements;

 

“NI
44-101” means National Instrument 44-101 – Short Form Prospectus Distributions;

 

“NI
44-102” means National Instrument 41-101 – Shelf Distributions;

 

“NI
51-102” means National Instrument 51-102 – Continuous Disclosure Obligations; “notice” has the
meaning given to it in Section 32;

 

“NP
11-202” means National Policy 11-202 – Process for Prospectus Reviews in Multiple Jurisdictions;

 

“Offered
Units” has the meaning given to it above;

 

“Offering”
has the meaning given to it above;

 

“Offering
Document Amendment” means any Prospectus Amendment or Offering Memorandum Amendment;

 

“Offering
Documents” means the Prospectus, the Final Offering Documents and any Offering Document Amendment;

 

“Offering
Memorandum Amendment” means any amendment to the U.S. Offering Memorandum;

 

    

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“OSC”
means the Ontario Securities Commission;

 

“Over-Allotment
Option” has the meaning given to it above;

 

“Over-Allotment Option Closing”
means the completion of the sale by the Underwriters of Additional Units or Additional Shares and/or Additional Warrants pursuant to this
Agreement;

 

“Over-Allotment Option Closing
Date” means the date, not earlier than the Closing Date, for an Over-Allotment Option Closing as set out in the Over-Allotment
Option Notice;

 

“Over-Allotment Option Closing
Time” means 8:00 a.m. (Toronto time) on the Over-Allotment Option Closing Date;

 

“Over-Allotment Option Notice”
has the meaning given to it above;

 

“Passport System”
means the procedures provided for under MI 11-202 and NP 11-202;

 

“person” means an
individual, partnership, limited partnership, limited liability partnership, corporation, limited liability company, unlimited liability
company, joint stock company, trust, unincorporated association or joint venture;

 

“Personally Identifiable Information”
means any information that alone or in combination with other information held by the Company can be used to specifically identify a person
including but not limited to a natural person’s name, street address, telephone number, e-mail address, photograph, social insurance
number, driver’s license number, passport number, credit or debit card number or customer or financial account number or any similar
information that is treated as “Personally Identifiable Information” under any applicable laws;

 

“Preliminary Base Shelf Prospectus”
means the preliminary short form base shelf prospectus prepared by the Company dated March 20, 2019 relating to the distribution
of up to $500,000,000 of common shares and other securities of the Company specified therein including, for greater certainty, the documents
incorporated or deemed to be incorporated by reference therein;

 

“Prospectus” means
the Final Base Shelf Prospectus as supplemented by the Prospectus Supplement and as amended by any Prospectus Amendment;

 

“Prospectus Amendment”
means any amendment to the Final Base Shelf Prospectus or the Prospectus Supplement;

 

“Prospectus Supplement”
means the shelf prospectus supplement to the Final Base Shelf Prospectus dated June 16, 2020 prepared by the Company relating to
the distribution of the Offered Units, including documents incorporated by reference therein;

 

“provide” or “provided”,
in the context of sending or making available marketing materials to a potential purchaser of the Offered Units, has the meaning given
to it in NI 41-101;

 

“Qualified Institutional Buyers”
has the meaning given to it in Rule 144A;

 

“Qualifying Jurisdictions”
means all of the provinces of Canada except Quebec;

 

“Rule 144A”
means Rule 144A adopted by the U.S. Securities and Exchange Commission under the 1933 Act;

 

“Returns” has the
meaning given to it in Section 9(1)(ccc);

 

    

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“Sanctions” has the
meaning given to it in Section 9(1)(qq);

 

“Selling Firm” has
the meaning given to it in Section 4(1);

 

“Shares” has the
meaning given to it above;

 

“template version”
has the meaning given to it in NI 41-101 and includes any revised template version of marketing materials as contemplated in NI 41-101;

 

“Transfer Agent”
means Odyssey Trust Company, at its principal office in Calgary, Alberta;

 

“TSX” means the Toronto
Stock Exchange;

 

“Underwriter” and
 “Underwriters” have the respective meanings given to them above;

 

“Underwriters’ Information”
means information and statements relating solely to the Underwriters which have been provided by the Underwriters to the Company for use
in any Offering Document;

 

“Underwriting Fee”
has the meaning given to it in Section 14(1)(a);

 

“United States” or
 “U.S.” means the United States of America, its territories and possessions, any state of the United States, and the
District of Columbia;

 

“United States Securities Laws”
means United States federal and applicable state securities laws;

 

“U.S. Affiliate”
means the U.S. registered broker-dealer affiliate of an Underwriter;

 

“U.S. Offering Memorandum”
means the U.S. private placement memorandum (which shall include the Prospectus) used to make offers and sales of the Offered Units in
the United States to Qualified Institutional Buyers (as defined in Rule 144A);

 

“U.S. Person”
means a “U.S. person” as defined in Rule 902(k) of Regulation S under the 1933 Act;

 

“Warrants” has the
meaning given to it above;

 

“Warrant Indenture”
has the meaning given to it above; and

 

“Warrant Share” or
 “Warrant Shares” has the meaning given to it above.

 

		(2)	Unless otherwise expressly provided in this Agreement, words importing only the singular number include
the plural and vice versa and words importing gender include all genders. Reference to Sections or Schedules are to the appropriate Section or
Schedule of this Agreement.

 

		(3)	All references to “dollars” or “$” are to Canadian dollars, unless otherwise expressly
stipulated. The schedules to this Agreement are incorporated by reference in, and form an integral part of, this Agreement for all purposes
of it.

 

		(4)	The division of this Agreement into sections and the insertion of headings are for convenience of reference
only and shall not affect the construction or interpretation of this Agreement.

 

		(5)	Any reference to “this Agreement” means this Agreement as amended, modified, replaced or supplemented
from time to time.

 

    

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		Section 2	Compliance
                                            with Securities Laws

 

The
Company represents and warrants to the Underwriters that the Company has prepared and filed the Preliminary Base Shelf Prospectus
and the Final Base Shelf Prospectus with the Canadian Securities Regulators and has obtained a receipt from the OSC for each of the Preliminary
Base Shelf Prospectus and the Final Base Shelf Prospectus and, pursuant to MI 11-102, a receipt for the Preliminary Base Shelf Prospectus
and the Final Base Shelf Prospectus is deemed to have been issued by the Canadian Securities Regulators in each of the other Qualifying
Jurisdictions. The Company covenants with the Underwriters that it will, by no later than 5:00 p.m. (Toronto time) on June 16,
2020, prepare and file the Prospectus Supplement in a form approved by the Company and the Underwriters, acting reasonably, along with
all other documents required under applicable Canadian Securities Laws to be filed therewith. The Company will promptly fulfill and comply
with, to the satisfaction of the Underwriters, acting reasonably, the Canadian Securities Laws and United States Securities Laws required
to be fulfilled or complied with by the Company to enable the Offered Units to be lawfully distributed to the public in the Qualifying
Jurisdictions through the Underwriters or their respective affiliates or any other investment dealers or brokers registered in such jurisdictions
in a category permitting them to distribute the Offered Units under Canadian Securities Laws applicable in such jurisdictions.

 

		Section 3	Due Diligence

 

Prior
to the filing of the Prospectus Supplement, the Company shall permit the Underwriters to review and participate in the preparation of
the Prospectus Supplement and shall allow each of the Underwriters to conduct any due diligence investigations which any of them reasonably
requires in order to fulfill its obligations under Canadian Securities Laws and in order to enable it to responsibly execute the certificate
in the Prospectus Supplement required to be executed by it. Following the execution and delivery of this Agreement up to the later
of the Closing Date and the date of completion of the distribution of the Offered Units, the Company shall allow each of the Underwriters
to conduct any due diligence investigations that it reasonably requires in order to fulfill its obligations as an underwriter under Canadian
Securities Laws.

 

		Section 4	Distribution
                                            and Certain Obligations of the Underwriters

 

		(1)	The Company agrees that the Underwriters will be permitted to appoint, at their sole expense, other registered
dealers or brokers as their agents to assist in the distribution of the Offered Units. The Underwriters shall, and shall require any such
dealer or broker, other than the Underwriters, with which the Underwriters have a contractual relationship in respect of the distribution
of the Offered Units (a “Selling Firm”) to, comply with applicable Canadian Securities Laws and United States Securities
Laws in connection with the distribution of the Offered Units and shall offer the Offered Units for sale to the public in the Qualifying
Jurisdictions directly and through the Selling Firms upon the terms and conditions (including the offer price) set out in the Offering
Documents and this Agreement. The Underwriters shall, and shall require any Selling Firm to, offer for sale to the public and sell the
Offered Units only in those jurisdictions where the Offered Units may be lawfully offered for sale or sold.

 

		(2)	The Underwriters shall, and shall require any Selling Firm to agree to, observe and distribute the Offered
Units in a manner that complies with all applicable laws and regulations (including in connection with offers and sales in the United
States pursuant to Rule 144A and pursuant to the laws of any applicable U.S. states) in each jurisdiction into and from which they
may offer to sell the Offered Units or distribute the Final Offering Documents, as applicable, in connection with the distribution of
the Offered Units and will not, and will require any Selling Firm not to, directly or indirectly, offer, sell or deliver any Offered Units
or Final Offering Documents or any other document (including, for greater certainty, the marketing materials) to any person in any jurisdiction,
except in a manner which will not require the Company to comply with the registration, prospectus, continuous disclosure, filing or other
similar requirements under the applicable securities laws of any jurisdictions (other than the Qualifying Jurisdictions).

 

    

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		(3)	The Company acknowledges and agrees that the Underwriters are acting severally and not jointly (nor jointly
and severally) in performing their respective obligations under this Agreement (including obligations under any Schedules to this Agreement)
and no Underwriter shall be liable for any act, omission or conduct by any other Underwriter or Selling Firm appointed by any other Underwriter.

 

		(4)	For the purposes of this Section 4, the Underwriters shall be entitled to assume that the Offered
Units are qualified for distribution in any Qualifying Jurisdiction where a receipt or similar document for the Prospectus shall have
been obtained, or deemed to have been obtained, from the applicable Canadian Securities Regulator following the filing of the Prospectus
in each of the Qualifying Jurisdictions.

 

		(5)	The Company acknowledges that the Lead Underwriter shall, in its sole discretion and without notice to
or consent of the Company, be entitled to assign its underwriting commitment under this Agreement to any of its affiliates within the
Canaccord Genuity Group of Companies.

 

		Section 5	United
                                            States Offers and Sales

 

The
Company and the Underwriters hereby acknowledge that the Offered Units have not been and will not be registered under the 1933 Act or
any U.S. state securities laws and may not be offered or sold in the United States except to Qualified Institutional Buyers in accordance
with Rule 144A and in compliance with the laws of any applicable U.S. states. Accordingly, the Company and each of the Underwriters
hereby agree that offers and sales of the Offered Units in the United States shall be conducted only in the manner specified in Schedule
A hereto, which terms and conditions are hereby incorporated by reference in and form a part of this Agreement.

 

		Section 6	Marketing
                                            Materials

 

		(1)	In connection with the distribution of the Offered Units:

 

		(a)	the Company shall in consultation with and upon the request by the Lead Underwriter, prepare and approve
in writing, prior to the time the marketing materials are provided to potential investors, a template version of the marketing materials
reasonably requested to be provided by the Underwriters to any potential investor; such marketing materials shall comply with Canadian
Securities Laws and be acceptable in form and substance to the Underwriters, acting reasonably, and such template version shall be approved
in writing by the Lead Underwriter, on behalf of all of the Underwriters, prior to the time the marketing materials are provided to potential
investors;

 

		(b)	the Company shall file the template version of the marketing materials referred to in Section 6(1)(a) above
with the Canadian Securities Regulators as soon as reasonably practicable after the template version of the marketing materials is so
approved in writing by the Company and by the Lead Underwriter, on behalf of all of the Underwriters, and in any event on or before the
day the marketing materials are first provided to any potential investor; and

 

		(c)	any comparables shall be redacted from the template version of the marketing materials in accordance with
NI 41-101 prior to filing such template version with the Canadian Securities Regulators and a complete template version containing such
comparables and any disclosure relating to the comparables, if any, shall be delivered to the Canadian Securities Regulators by the Company
as required by Canadian Securities Laws.

 

    

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		(2)	Following the approvals and filings set forth in the foregoing paragraphs, the Underwriters may provide
the marketing materials to potential investors to the extent permitted by Canadian Securities Laws and applicable United States Securities
Laws.

 

		(3)	The Company shall prepare and file a Marketing Materials Amendment provided to potential investors in
connection with the offering of the Offered Units where required under Canadian Securities Laws, and the foregoing paragraphs above shall
also apply to such revised template version.

 

		Section 7	Delivery
                                            of Documents

 

		(1)	At or prior to the time of filing the Prospectus Supplement, the Company shall deliver or cause to be
delivered to the Underwriters and the Underwriters’ counsel, at the respective times indicated, the following documents (except
to the extent such documents have been previously delivered to the Underwriters or are available on SEDAR):

 

		(a)	a copy of each of the Final Base Shelf Prospectus and the Prospectus Supplement, including for greater
certainty each of the documents incorporated by reference to the extent not available on SEDAR, signed and certified by the Company as
required by the Canadian Securities Laws applicable in the Qualifying Jurisdictions;

 

		(b)	a copy of the U.S. Offering Memorandum;

 

		(c)	a “long-form” comfort letter of MNP LLP dated the date of the Prospectus Supplement (with
the requisite procedures to be completed by such auditors no earlier than two Business Days prior to the date of the Prospectus Supplement)
addressed to the Underwriters and the directors of the Company, in form and substance satisfactory to the Underwriters, acting reasonably,
with respect to certain financial and accounting information relating to the Company contained in the Final Offering Documents, which
letter shall be in addition to the auditors’ report of MNP LLP contained in the Prospectus and any consent letter of MNP LLP addressed
to the Canadian Securities Regulators;

 

		(d)	a “long-form” comfort letter of Ernst and Young LLP dated the date of the Prospectus Supplement
(with the requisite procedures to be completed by such auditors no earlier than two Business Days prior to the date of the Prospectus
Supplement) addressed to the Underwriters and the directors of the Company, in form and substance satisfactory to the Underwriters, acting
reasonably, with respect to certain financial and accounting information relating to the Company contained in the Final Offering Documents;

 

		(e)	a “long-form” comfort letter of Richter LLP dated the date of the Prospectus Supplement (with
the requisite procedures to be completed by such auditors no earlier than two Business Days prior to the date of the Prospectus Supplement)
addressed to the Underwriters and the directors of the Company, in form and substance satisfactory to the Underwriters, acting reasonably,
with respect to certain financial and accounting information relating to Abacus Health Products, Inc. contained in the Final Offering
Documents, which letter shall be in addition to the auditors’ report of Richter LLP contained in the Prospectus and any consent
letter of Richter LLP addressed to the Canadian Securities Regulators; and

 

		(f)	a copy of any other document required to be filed by the Company under the Canadian Securities Laws.

 

    

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		(2)	During the period from the date of this Agreement until the later of the Closing Date and the date of
completion of distribution of the Offered Units under the Final Offering Documents:

 

		(a)	in the event that the Company is required by Canadian Securities Laws (as a result of a change in Canadian
Securities Laws or otherwise) to prepare and file a Prospectus Amendment or a Marketing Materials Amendment, the Company shall prepare
and deliver promptly to the Underwriters signed and certified (other than by the Underwriters) copies of such Prospectus Amendment or
Marketing Materials Amendment. Concurrently with the delivery of any Prospectus Amendment, the Company shall deliver to the Underwriters
documents similar to those referred to in Section 7(1)(c), and in connection with any such Prospectus Amendment, shall prepare and
deliver to the Underwriters a corresponding Offering Memorandum Amendment; and

 

		(b)	in the event that the Company is required by United States Securities Laws (as a result of a change in
United States Securities Laws or otherwise) to prepare and/or file an Offering Memorandum Amendment, the Company shall use commercially
reasonable efforts to prepare and deliver promptly to the Underwriters such Offering Memorandum Amendment.

 

		(3)	The Company shall permit the Underwriters to review and participate in the preparation of any Offering
Document Amendment or Marketing Materials Amendment, it being understood and agreed that no Prospectus Amendment or Marketing Materials
Amendment will be filed with any Canadian Securities Regulator, and no Offering Memorandum Amendment distributed, without first obtaining
the approval of the Underwriters and their counsel, after consultation with the Underwriters with respect to the form and content thereof.

 

		Section 8	Representations
                                            and Warranties of the Company as to the Offering Documents

 

		(1)	Filing of the Prospectus Supplement and any Prospectus Amendment shall constitute a representation and
warranty by the Company to the Underwriters and the U.S. Affiliates that, as at their respective dates of filing:

 

		(a)	the information and statements (except for the Underwriters’ Information) contained in the Prospectus
or any Prospectus Amendment, as applicable (i) are true and correct, (ii) contain no misrepresentation and (iii) constitute
full, true and plain disclosure of all material facts relating to the Company and the Offered Units, Shares, Warrants and Warrant Shares
as required by Canadian Securities Laws;

 

		(b)	no material fact has been omitted from such information and statements (except for the Underwriters’
Information) that is required to be stated in such information and statements or that is necessary to make a statement contained in such
information and statements not misleading in the light of the circumstances under which it was made;

 

		(c)	the information and statements (except for the Underwriters’ Information) contained in the U.S.
Offering Memorandum and any Offering Memorandum Amendment, as applicable, do not contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made,
not misleading, all within the meaning of United States Securities Laws;

 

		(d)	except with respect to any Underwriters’ Information, each such document complies with all applicable
requirements of Canadian Securities Laws and United States Securities Laws, as applicable; and

 

		(e)	the statistical and market-related data included in the Prospectus, the U.S. Offering Memorandum, the
marketing materials and any Prospectus Amendment, Offering Document Amendment or Marketing Materials Amendment are based on or derived
from sources that are believed by the Company to be reliable and accurate in all material respects.

 

    

    12

    

 

		(2)	Such filings shall also constitute the Company’s consent to the Underwriters’ use of the Prospectus,
any Prospectus Amendment, the marketing materials and any Marketing Materials Amendment in connection with the distribution of the Offered
Units in the Qualifying Jurisdictions in compliance with this Agreement and applicable Canadian Securities Laws and the use of the U.S.
Offering Memorandum for offers and sales of the Offered Units, if any, in the United States to Qualified Institutional Buyers.

 

		Section 9	Additional
                                            Representations, Warranties and Covenants of the Company

 

		(1)	The Company represents, warrants and covenants to the Underwriters and the U.S. Affiliates, and acknowledges
that each of the Underwriters and the U.S. Affiliates are relying upon such representations, warranties and covenants in purchasing the
Offered Units, that:

 

		(a)	since the respective dates as of which information is given in the Final Offering Documents, except as
otherwise stated therein, (i) there has been no Material Adverse Change; (ii) there have been no transactions entered into by
the Company, other than those in the ordinary course of business, which are material with respect to the Company; and (iii) there
has been no dividend or distribution of any kind declared, paid or made by the Company on any class of its shares;

 

		(b)	the Company has been duly incorporated and is existing as a corporation and in good standing under the
laws of the Province of British Columbia;

 

		(c)	Charlotte’s Web, Inc. has been duly incorporated and is existing as a corporation and in good
standing under the laws of the State of Delaware;

 

		(d)	except as described in the Final Offering Documents, each member of the Company Group has the requisite
corporate power and authority to own, lease and operate its properties and assets (including licenses and other similar rights) and to
conduct its business as described in each Offering Document, and is properly registered or licensed to transact business and is in good
standing under the laws of all jurisdictions in which its business is carried on or in which it owns or leases properties;

 

		(e)	the Company has an authorized share capital consisting of an unlimited number of common shares, an unlimited
number of proportionate voting shares and an unlimited number of preferred shares, of which an aggregate of 90,287,520 common shares,
an aggregate of 92,455.5775 proportionate voting shares and no preferred shares are issued and outstanding as of the date hereof. Except
as described in the Final Offering Documents, no person, firm or company has, or will have at the Closing Time, any agreement or option,
or right or privilege (whether pre-emptive or contractual) capable of becoming an agreement or option, for the purchase from the Company
of any unissued shares of the Company or any right to convert any obligation into or exchange any shares of the Company, or for the purchase
or acquisition of the assets or property of any kind of the Company;

 

		(f)	all of the common shares and proportionate voting shares of the Company have been duly and validly authorized
and issued and are fully paid and non-assessable shares of the Company, and none of such common shares or proportionate voting shares
of the Company were issued in violation of the pre-emptive right or similar rights of any securityholder of the Company or of any other
person;

 

    

    13

    

 

		(g)	at the applicable Closing, the Shares and the Warrants will have been duly created, authorized, allotted
and reserved for issuance and, at the applicable Closing Time, after payment of applicable consideration:

 

		(i)	the Initial Shares and, if applicable, the Additional Shares will be duly and validly issued and outstanding
as fully paid and non-assessable shares in the capital of the Company;

 

		(ii)	the Initial Warrants and, if applicable, the Additional Warrants will be duly created and validly issued
and outstanding as fully paid securities of the Company; and

 

		(iii)	the Initial Shares and the Initial Warrants, and, if applicable, the Additional Shares and the Additional
Warrants, will not have been issued in violation of or subject to any pre-emptive or contractual rights to purchase securities issued
or granted by the Company;

 

		(h)	at Closing, the Warrant Shares will have been duly authorized, allotted and reserved for issuance, and,
upon the proper exercise of the Warrants and payment of the exercise price therefor, will be validly issued and outstanding as fully paid
and non-assessable common shares in the capital of the Company. The Warrant Shares will not have been issued in violation of or subject
to any pre-emptive or contractual rights to purchase securities issued or granted by the Company;

 

		(i)	all of the issued and outstanding shares or other equity interests in Charlotte’s Web, Inc.
are 100% owned by the Company (free and clear of all Liens); in addition, all of the issued and outstanding shares or other equity interests
in Charlotte’s Web, Inc. were duly and validly authorized and issued by Charlotte’s Web, Inc. and are fully paid
and non-assessable shares or other equity interests of Charlotte’s Web, Inc.;

 

		(j)	other than the shares or other equity interests in Charlotte’s Web, Inc., and Abacus Health
Products, Inc. (and, indirectly, the wholly owned subsidiaries of Abacus Health Products, Inc.), the Company does not have any
equity interest, directly or indirectly, in any person;

 

		(k)	no person, firm or corporation has any agreement or option, or right or privilege (whether pre-emptive
or contractual) capable of becoming an agreement or option, for the purchase from any member of the Company Group of any unissued shares
thereof, except for the following issued and outstanding securities: (A) stock options outstanding exercisable to acquire the equivalent
of 4,886,296 common shares of the Company; (B) 381,500 restricted stock awards issued and outstanding; (C) common share purchase
warrants exercisable to acquire the equivalent of 4,393,982 common shares of the Company;

 

		(l)	other than the Legacy Stock Option Plan and the LTIP and the stock options of the Company referred to
in Section 9(1)(i), the Company has no stock-based benefit or incentive plan in effect which contemplates issue of Company shares
from treasury;

 

		(m)	the Company has the requisite corporate power, authority and capacity to enter into this Agreement and
the Warrant Indenture and to perform its obligations hereunder and thereunder, and to execute and file with the Canadian Securities Regulators
the Final Base Shelf Prospectus, the Prospectus Supplement and any Prospectus Amendments;

 

		(n)	this Agreement, the Warrant Indenture and the performance by the Company of its obligations hereunder
and thereunder, the execution and filing with the Canadian Securities Regulators of the Final Base Shelf Prospectus, the Prospectus Supplement
and any Prospectus Amendments have been or will at the Closing Time be duly authorized by all necessary corporate action, and each of
this Agreement and the Warrant Indenture has been or will be at the Closing Time duly executed and delivered by the Company and constitutes
a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement
hereof and thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors
generally and except as limited by the application of general equitable principles, including the limitation that rights of indemnity,
contribution and waiver may be limited by applicable laws;

 

    

    14

    

 

		(o)	the rights, privileges, restrictions, conditions and other terms attaching to the common shares, the proportionate
voting shares and the preferred shares of the Company, the Shares and the Warrants will, at the Closing Time and, if applicable, the Over-Allotment
Option Closing Time, conform in all material respects to the respective descriptions thereof contained in the Final Offering Documents;

 

		(p)	the Financial Statements contained in the Final Offering Documents have been prepared in conformity with
IFRS, consistently applied throughout the periods involved, and comply as to form in all material respects with the applicable accounting
requirements of Canadian Securities Laws and laws of the Province of British Columbia. Such Financial Statements present fairly in all
material respects the financial position, financial performance and cash flows of the relevant entity as at the dates and for the periods
of such Financial Statements. The other Financial Information included in the Final Offering Documents presents fairly in all material
respects the information shown therein and, other than those aspects of the non-IFRS measures and industry metrics that are not derived
from the Financial Statements, has been compiled on a basis consistent with that of the Financial Statements;

 

		(q)	no forecast, budget or projection provided by or on behalf of the Company Group to the Underwriters contains
any misrepresentation and such forecasts, budgets and projections were prepared in good faith, disclosed all relevant assumptions and
contain reasonable estimates of the prospects of the business and operations of the Company Group;

 

		(r)	all material accruals for unpaid vacation pay, premiums for unemployment insurance, health premiums, pension
plan premiums, accrued wages, salaries and commissions and Employee Plans payments of the Company Group have been recorded in conformity,
in all material respects, with IFRS and comply in all material respects as to form with the applicable accounting requirements, and are
reflected on the books and records of the Company Group, as applicable. There are no outstanding violations or defaults under the Employee
Plans or any actions, suits, claims, trials, demands, investigations, arbitration proceedings or other proceedings pending or threatened
with respect to any of the Employee Plans that would, individually or in the aggregate, have a Material Adverse Effect. The execution,
delivery and performance of this Agreement by the Company will not constitute an event or condition under any Employee Plan that entitles
any employee or former employee to a payment, promise of payment, acceleration of vesting or any other benefit to which that individual
would not otherwise be entitled;

 

		(s)	except as disclosed in the Final Offering Documents (including the Financial Statements contained therein),
no member of the Company Group has outstanding any debentures, notes, mortgages or other indebtedness that is material to the Company
Group taken as a whole;

 

		(t)	no member of the Company Group has, or on the Closing Date will have, incurred any liabilities or obligations
(whether accrued, absolute, contingent or otherwise) that continue to be outstanding, except: (i) as disclosed or contemplated in
the Final Offering Documents (including the Financial Statements contained therein); and (ii) as incurred in the ordinary course
of business by the Company Group and which do not, individually or in the aggregate, have a Material Adverse Effect;

 

    

    15

    

 

		(u)	except as disclosed in the Final Offering Documents (including the Financial Statements contained therein),
since December 31, 2019, (i) there has not been any change in the share capital, long-term debt, financial condition or operations
of the other than changes in the ordinary course of business; (ii) the business of the Company Group has been carried on in the ordinary
course; (iii) none of the property or assets of the Company Group has been transferred, assigned, sold, distributed, distributed
by way of dividend or otherwise disposed of other than in the ordinary course of business; and (iv) the Company Group has not cancelled
any debts or entitlements other than in the ordinary course of business;

 

		(v)	Ernst and Young LLP is independent in accordance with the rules of professional conduct applicable
to auditors in Canada, and applicable Canadian Securities Laws, and there has not been any reportable event (within the meaning of NI
51-102) with such auditors with respect to audits of the Company and Charlotte’s Web, Inc.;

 

		(w)	except as would not have a Material Adverse Effect, no member of the Company Group is in breach or violation
of: (i) any term or provision of its constating documents; (ii) any resolution of its board of directors or shareholders; or
(iii) any contract, mortgage, note, indenture, joint venture or partnership arrangement, agreement (written or oral), instrument,
lease, judgment, decree, order, statute, rule, licence, law or regulation applicable to it or by which it is bound;

 

		(x)	no member of the Company Group is in material violation or material default of, nor will the execution
of this Agreement and the Prospectus and the U.S. Offering Memorandum, the performance by the Company Group of its obligations hereunder,
result in any material breach or material violation of, or be in conflict with, or constitute a material default under, or create a state
of facts which after notice or lapse of time, or both, would constitute a material default under, or give rise to any right to accelerate
the maturity or require the prepayment of any indebtedness under, or result in the imposition of any Lien upon any property or assets
of the Company Group pursuant to (i) any term or provision of the constating documents of any member of the Company Group or any
resolution of the directors or shareholders of any member of the Company Group; (ii) any contract, mortgage, note, indenture, joint
venture or partnership arrangement, agreement (written or oral), instrument, lease (including for real property) or licence to which any
member of the Company Group is a party or bound or to which any of the business, operations, property or assets of the Company Group are
subject (collectively, “Company Group Contracts”); or (iii) any statute, law, rule, regulation, judgment, order
or decree applicable to the Company Group or their business, operations or assets, of any court, Governmental Authority, arbitrator or
other authority having jurisdiction over the Company Group;

 

		(y)	there are no business relationships, related-party transactions or off-balance sheet transactions involving
any member of the Company Group or any other person required to be described in the Final Offering Documents (including the Financial
Statements contained therein) which have not been described as required under IFRS; and there are no contracts or other documents that
are required to be described in the Prospectus under Canadian Securities Laws;

 

		(z)	all material Company Group Contracts have been made available to the Underwriters in the Company’s
data room, and all Company Group Contracts are valid and binding obligations of the applicable member of the Company Group and are in
good standing; and (i) no event of default or event which after the giving of notice or the lapse of time or both would constitute
an event of default, has occurred and is outstanding under any Company Group Contract; (ii) the Company Group has no Knowledge of
any default by the other parties to each Company Group Contract; and (iii) no member of the Company Group has waived any material
rights under any Company Group Contract;

 

    

    16

    

 

		(aa)	there is no requirement to obtain a consent, approval or waiver of a party under any material Company
Group Contract in respect of any of the transactions contemplated by this Agreement, other than such consents, approvals and waivers as
have been obtained by any member of the Company Group as at the date hereof;

 

		(bb)	no securities commission, stock exchange or comparable authority has issued any order preventing or suspending
the use of the Final Base Shelf Prospectus, the Prospectus Supplement, the U.S. Offering Memorandum, or any Prospectus Amendment or Offering
Memorandum Amendment, if any, or instituted proceedings for that purpose and no such proceedings are pending or, to the Knowledge of the
Company Group, contemplated or threatened;

 

		(cc)	the Transfer Agent has been duly appointed as registrar and transfer agent for the common shares and proportionate
voting shares of the Company;

 

		(dd)	on or prior to the Closing Time, the form of the certificates for the common shares and proportionate
voting shares of the Company will have been approved by the board of directors of the Company and adopted by the Company and will comply
with all applicable legal and stock exchange requirements and will not conflict with the Company’s constating documents;

 

		(ee)	there is no litigation, arbitration or governmental or other proceeding, suit or investigation at law
or in equity before any court or arbitrator or before or by any federal, provincial, state, municipal or other governmental or public
department, commission, board, agency or body, domestic or foreign, in progress, pending or, to the Knowledge of the Company Group, threatened
against, or involving the assets, properties or business of, any member of the Company Group which is material or which would adversely
affect the consummation of the transactions contemplated by this Agreement in any material respect or the performance by the Company of
its obligations hereunder;

 

		(ff)	(i) each member of the Company Group is in compliance in all material respects with the provisions
of applicable federal, provincial, state, local and foreign laws and regulations respecting employment; (ii) no labour dispute with
the employees of any member of the Company Group exists or is pending or, to the Knowledge of the Company Group, threatened or imminent,
and the Company Group has no Knowledge of any existing or imminent labour disturbance by the employees of the Company Group’s principal
contractors; (iii) the labour relations of the Company Group are satisfactory; and (iv) no collective agreement or collective
bargaining agreement or modification thereof has expired and none is currently being negotiated by any member of the Company Group;

 

		(gg)	no material supplier, distributor, customer or service provider of any member of the Company Group has
notified the Company Group in writing, and to the Knowledge of the Company Group, there is no reason to believe, that any such material
supplier, distributor, customer or service provider will not continue dealing with applicable member of the Company Group on substantially
the same terms as presently conducted, subject to changes in pricing and volume in the ordinary course;

 

		(hh)	except as described in the Final Offering Documents, each member of the Company Group has conducted and
is conducting its business in compliance in all material respects with all applicable laws of each jurisdiction in which it carries on
business and with all applicable laws, tariffs and directives material to its operations, including all applicable federal, provincial,
state, municipal, and local zoning, environmental, controlled substance laws and regulations and other lawful requirements of any governmental
or regulatory body, including, but not limited, to relevant permits and licenses;

 

    

    17

    

 

		(ii)	all product research and development activities, including quality assurance, quality control, testing,
and research and analysis activities, conducted by the Company Group in connection with their business is being conducted in compliance,
in all material respects, with all industry, laboratory safety, management and training standards applicable to the business and all such
processes, procedures and practices required in connection with such activities are in place as necessary and are being complied with
in all material respects;

 

		(jj)	except as described in the Final Offering Documents, all supply, production and processing partners have
obtained and are in compliance with all authorizations required by the jurisdictions in which they operate to permit them to conduct their
business as currently conducted or and to the Knowledge of the Company Group, proposed to be conducted;

 

		(kk)	except as described in the Final Offering Documents, there is no material litigation or governmental or
other proceeding and to the Knowledge of the Company Group, investigation at law or in equity before any Governmental Authority, domestic
or foreign, in progress, pending or, to the Company Group’s Knowledge, threatened (and the Company Group do not know of any basis
therefor) against, or involving the assets, properties or business of, the Company Group, nor are there any matters under discussion with
any Governmental Authority relating to taxes, governmental charges, orders or assessments asserted by any such authority, and to the Company
Group’s Knowledge, there are no facts or circumstances which would reasonably be expected to form the basis for any such litigation,
governmental or other proceeding or investigation, taxes, governmental charges, orders or assessments;

 

		(ll)	each member of the Company Group has security measures and safeguards in place to protect Personally Identifiable
Information that it may collect from registered customers and other parties from illegal or unauthorized access or use by its personnel
or third parties in a manner that violates applicable privacy laws. The Company Group has complied in all material respects with all applicable
privacy and consumer protection laws and has not collected, received, stored, disclosed, transferred, used, misused or permitted unauthorized
access to any information protected by privacy laws, whether collected directly or from third parties, in an unlawful manner. The Company
Group has taken all reasonable steps to protect Personally Identifiable Information against loss or theft and against unauthorized access,
copying, use, modification, disclosure or other misuse;

 

		(mm)	there are no bonuses, distributions or salary payments which will be payable by any member of the Company
Group, outside of the ordinary course of business, to any officer, director, employee or consultant of the Company Group after the Closing
Date relating to their employment with, or services rendered to, the Company Group prior to the Closing Date;

 

		(nn)	other than usual and customary health and related benefit plans for employees, the Final Offering Documents
disclose to the extent required by applicable Canadian Securities Laws each Employee Plan, each of which has been maintained in all material
respects with its terms and with the requirements prescribed by any and all statutes, orders, rules and regulations that are applicable
to such Employee Plans;

 

		(oo)	(i) there are no workers’ compensation claims pending against any member of the Company Group;
and (ii) to the Knowledge of the Company Group (A) none of the executive officers of the Company Group described in the Final
Offering Documents has any plans to terminate his or her employment, (B) none of the executive officers of the Company Group described
in the Final Offering Documents or any other employee of the Company Group is subject to any secrecy or non-competition agreement or any
other agreement (other than the Name and Likeness Agreement) or restriction of any kind that would impede in any way the ability of such
executive officer or employee to carry out fully all activities of such employee in furtherance of the Company Group’s business,
and (C) none of the executive officers of the Company Group described in the Final Offering Documents or any other employee or former
employee of the Company Group has any claim with respect to any Intellectual Property rights of the Company Group (other than pursuant
to the Name and Likeness Agreement);

 

     

    	 	 	18

    

 

		(pp)	(i) to the Knowledge of the Company Group, no member of the Company Group has, directly or indirectly,
(A) made or authorized any contribution, payment or gift of funds or property of the Company Group or other unlawful expense relating
to political activity to any official, employee or agent of any Governmental Authority or (B) made any direct or indirect contribution
from corporate funds to any candidate for public office, in either case, where either the payment or the purpose of such contribution,
payment or gift was, is, or would be prohibited under the Canada Corruption of Foreign Public Officials Act (Canada), the Proceeds of
Crime (Money Laundering) and Terrorist Financing Act (Canada), or Title 18 United States Code Section 1956 and 1957 (U.S.), or the
rules and regulations promulgated thereunder or under any other legislation of any relevant jurisdiction covering a similar subject
matter applicable to the Company Group and their respective operations, and no member of the Company Group has instituted and maintains
policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance with such laws;
and (ii) the operations of each member of the Company Group are and have been conducted at all times in compliance, in all material
respects, with such laws and no suit, action or proceeding by or before any Governmental Authority or any arbitrator involving the Company
Group with respect to such legislation is in progress, pending or, to the Knowledge of the Company Group, threatened;

 

		(qq)	the Company Group, or, to the Knowledge of the Company Group, any director, officer, employee, agent or
affiliate of the Company Group, is not (i) currently the subject of any sanctions administered by the Office of Foreign Assets Control
of the U.S. Treasury Department or other relevant sanctions authority (collectively, “Sanctions”), or (ii) located,
organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar, Cuba, Iran,
North Korea, Sudan and Syria); and the Company Group will not, directly or indirectly, use any proceeds of the Offering, or lend, contribute
or otherwise make available such proceeds to a subsidiary, joint venture partner or other person, for the purpose of financing the activities
of any person currently subject to any Sanctions;

 

		(rr)	subject to the Name and Likeness Agreement, (i) each member of the Company Group owns or has the
right to use all patents, patent rights, licences, inventions, copyrights, know how (including trade secrets and other unpatented and/or
unpatentable proprietary or confidential information, systems or procedures), trade-marks, service marks, trade names and other intellectual
property, including those listed in the Final Offering Documents (collectively, “Intellectual Property”) and all technology
used or held for use in the conduct of the business now operated by the Company Group without any conflict with or infringement upon the
rights of others, in each case with such exceptions as would not, individually or in the aggregate, result in a Material Adverse Effect
and subject to limitations contained in any applicable license agreement; (ii) to the extent any Intellectual Property owned by the
Company Group has been created in whole or in part by current or past employees, consultants or independent contractors, any rights therein
of such persons have been irrevocably assigned in writing to the Company Group, such persons have waived all moral rights in such persons’
contribution to such Intellectual Property or component thereof; (iii) there are no third parties who have or, to the Knowledge of
the Company Group, who will be able to establish rights to any Intellectual Property owned or licensed by the Company Group or rights
in the subject matter of such Intellectual Property; (iv) the Company Group has no Knowledge of any Intellectual Property held by
others that would prevent the development, use, sale, lease, license and service of products now existing or under development by the
Company Group, other than those sourced from third parties; (v) to the Knowledge of the Company Group, there is no material infringement
by third parties of such Intellectual Property; (vi) there is no action, suit, proceeding or claim pending or, to the Knowledge of
the Company Group, threatened by others challenging the Company Group’s rights in or to any Intellectual Property or the validity
or scope of any Intellectual Property owned, licensed or commercialized by the Company Group, and the Company Group has no Knowledge of
any other fact which could form a reasonable basis for any such action, suit, proceeding or claim in each case; and (vii) to the
Knowledge of the Company Group, all trade secrets and other confidential proprietary information forming part of or in relation to the
Intellectual Property being owned or licensed by the Company Group is and remains confidential to the Company Group;

 

     

    	 	 	19

    

 

		(ss)	no member of the Company Group has taken, nor will any member of the Company Group take, any action which
is designed to or which constitutes or might reasonably be expected to cause or result in stabilization or manipulation of the price of
any security of the Company to facilitate the sale or resale of the common shares of the Company or the Offered Units;

 

		(tt)	no approval, authorization, consent, permit, qualification, license, decree or order from, and no filing,
registration or recording with, any Governmental Authority having jurisdiction over the Company is required for the performance by the
Company of its obligations under this Agreement, the issuance and sale of the Offered Units hereunder or the transactions contemplated
by this Agreement, except as have been or will be obtained or made prior to the Closing Time;

 

		(uu)	except as disclosed in the Final Offering Documents, each member of the Company Group currently possess
or require any permits, licenses, approvals, consents or other authorizations (collectively, “Governmental Licenses”)
issued by the appropriate federal, provincial, state, local or foreign regulatory agencies or bodies necessary to conduct the business
now operated by them, except where the failure to hold such Governmental Licenses would not, individually or in the aggregate, result
in a Material Adverse Effect. Except as disclosed in the Final Offering Documents, each member of the Company Group is in compliance with
the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, individually or in the aggregate,
result in a Material Adverse Effect;

 

		(vv)	the Company Group does not own any real property and has good and marketable title to all personal and
movable properties owned by them, in each case, free and clear of all Liens;

 

		(ww)	(i) all real property, offices, stores and buildings, held under lease by the Company Group, including
the leases described in the Final Offering Documents (the “Leased Properties”) are held by it under valid, subsisting
and enforceable leases (the “Leases”); (ii) the buildings, improvements, fixtures and other structures located
on the Leased Properties, and the operation and maintenance thereof, as now operated and maintained, comply in all material respects with
all applicable laws and regulations, municipal or otherwise, and with the terms and conditions of the Leases; (iii) there are no
expropriation or similar proceedings, actual or threatened, of which the Company Group has received written notice against or in respect
of the Leased Properties or any part thereof; (iv) all rental and other payments and obligations required to be paid or performed
under the terms and conditions of the Leases have been duly paid and performed by the Company Group; (v) no member of the Company
Group is in default of any of its material obligations under any of the Leases and, to the Knowledge of the Company Group, none of the
landlords or other parties to any of the Leases are in default of any their material obligations under any of the Leases; (vi) no
consent of any landlord under any of the Leases is required in order to complete the Offering or carry out the transactions contemplated
in this Agreement and the Final Offering Documents; and (vii) each of the Leased Properties has adequate access to and from public
streets or highways for the normal operations of the business of the Company Group and, to the Knowledge of the Company Group, there is
no fact or circumstance which could result in the termination or restriction of such access;

 

     

    	 	 	20

    

 

		(xx)	to the Knowledge of the Company, none of the Company’s directors or officers is now, or has ever
been, subject to an order or ruling of any securities regulatory authority or stock exchange prohibiting such individual from acting as
a director or officer of a public company or of a company listed on a particular stock exchange;

 

		(yy)	except as described in the Final Offering Documents, no director or officer of, or any other person not
dealing at arm’s length with, the Company =]

 

		(zz)	‘/oup, its affiliates or their directors or officers, will continue after Closing to be engaged
in any material transaction or arrangement with or to be a party to a material contract with, or have any material indebtedness, liability
or obligation to, the Company Group;

 

		(aaa)	except as described in the Final Offering Documents, no member of the Company Group is a party to or bound
by, and none of the business, operations, property or assets of any member of the Company Group is subject to, any material non-arm’s
length agreements or arrangements other than on terms and at a price that would have applied if the parties had been dealing at arm’s
length;

 

		(bbb)	the Company is not currently, and will not be following the Closing, prohibited directly or indirectly,
from paying any dividends or from making any other distributions on its share capital;

 

		(ccc)	each member of the Company Group (i) is in compliance with any and all applicable laws and regulations
relating to the protection of human health and safety, the environment or substances regulated by laws, including hazardous or toxic substances
or wastes, pollutants or contaminants (“Environmental Laws”), (ii) has received all material permits or other
approvals required of them under applicable Environmental Laws to conduct its business, and (iii) is in compliance with all terms
and conditions of any such permit or approval, except in all such cases where such non-compliance with Environmental Laws, failure to
receive required permits or other approvals or failure to comply with the terms and conditions of such permits or approvals would not
have a Material Adverse Effect;

 

		(ddd)	each member of the Company Group has (i) timely filed (or have had timely filed on their behalf)
all returns, declarations, reports, estimates, information returns, elections and statements (“Returns”) required to
be filed with or sent to any taxing authority having jurisdiction since incorporation or organization, and all such Returns have, in all
material respects, been prepared in accordance with the provisions of all applicable legislation and are true, correct and complete in
all material respects; (ii) timely and properly paid (or have had paid on its behalf) all governmental taxes and other charges due
or claimed to be due by a Governmental Authority (including all instalments on account of taxes for the current year); and (iii) properly
withheld or collected and remitted all amounts required to be withheld or collected and remitted by it in respect of any governmental
taxes or other charges;

 

     

    	 	 	21

    

 

		(eee)	no member of the Company Group has been notified of, nor is it a party to, any shareholders’ agreement,
voting agreement, investor rights agreement or other agreement which in any manner affects the voting or control of any securities of
any member of the Company Group, the nomination of directors to the board of any member of the Company Group or the operations or affairs
of any member of the Company Group;

 

		(fff)	there are no contracts, agreements or understandings between any member of the Company Group and any person
granting such person the right to require the Company to file a registration statement under the 1933 Act or to file a prospectus under
Canadian Securities Laws with respect to any securities of the Company owned or to be owned by such person or to require the Company to
include such securities in the Offering;

 

		(ggg)	the common shares of the Company are listed for trading on the TSX;

 

		(hhh)	the Company is qualified under NI 44-101 to file a prospectus in the form of a short form prospectus,
and is qualified under NI 44-102 to file a short form prospectus that is a base shelf prospectus;

 

		(iii)	the Company is a “reporting issuer” in each of the Qualifying Jurisdictions, is not in default
under any Canadian Securities Laws applicable in such jurisdictions and is in compliance, in all material respects, with the by-laws,
rules, policies and regulations of the TSX;

 

		(jjj)	there are no reports or information that in accordance with the Canadian Securities Laws must be made
publicly available or filed in connection with the Offering that have not been made publicly available as required;

 

		(kkk)	the Company is a “foreign private issuer” (as defined in Rule 405 under the 1933 Act);

 

		(lll)	the filing by the Company of any signed Prospectus Amendment or material change report required to be
filed under the Canadian Securities Laws will constitute a representation and warranty by the Company to the Underwriters that all the
information and statements contained therein are true and correct and that no material information has been omitted therefrom which is
necessary to make the statements contained therein not misleading in the light of the circumstances in which they were made;

 

		(mmm)	no order, ruling or determination having the effect of suspending the sale or ceasing the trading or distribution
of the Company’s common shares or any other securities of the Company has been issued by any regulatory authority and is continuing
in effect and no proceedings for that purpose have been instituted or are pending or, to the Knowledge of the Company, threatened, under
any of the Canadian Securities Laws;

 

		(nnn)	policies of insurance issued by insurers of recognized financial responsibility are maintained in respect
of the operations, properties and assets, employees, directors and officers of the Company Group in such amounts and covering such risks
as are prudent and customary in the businesses in which they are engaged, and such policies of insurance are maintained for the benefit
of the Company Group. All such policies of insurance are in full force and effect and no material default exists under such policies of
insurance as to the payment of premiums or otherwise under the terms of any such policy, there are no claims by the Company Group under
any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause;
and the Company Group has no Knowledge that it will not be able to renew the existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue their business;

 

     

    	 	 	22

    

 

		(ooo)	no member of the Company Group has been denied any insurance coverage which it has sought or for which
it has applied;

 

		(ppp)	the minutes, resolutions and corporate records of the Company Group made available to Stikeman Elliott
LLP, counsel to the Underwriters, in connection with the Underwriters’ due diligence investigations are true and complete copies
thereof and contain copies of all proceedings of the shareholders, the board of directors and all committees of the board of directors
of the Company Group that have been minutes or resolved, there have been no other meetings, resolutions or proceedings of the shareholders,
the board of directors or any committee thereof from such date to the date of review of such corporate records, minutes and resolutions
not reflected in such minutes, resolutions and other corporate records, other than those which are not material in the context of the
Company Group;

 

		(qqq)	except as contemplated hereby, there is no person acting at the request of any member of the Company Group
who is entitled to any brokerage or agency fee in connection with the sale of the Offered Units contemplated herein;

 

		(rrr)	except as disclosed in the Final Offering Documents, no acquisition has been made by any member of the
Company Group during its two most recently completed fiscal years that would be a “significant acquisition” for the purposes
of Canadian Securities Laws, and no proposed acquisition by any member of the Company Group has progressed to a state where a reasonable
person would believe that the likelihood of any member of the Company Group completing the acquisition is high and that, if completed
by any member of the Company Group at the date of the Prospectus Supplement, would be a “significant acquisition” for the
purposes of Canadian Securities Laws, in each case, that would require the prescribed disclosure in the Prospectus Supplement pursuant
to such laws;

 

		(sss)	the representations and warranties of the Company in the Arrangement Agreement, a true copy of which has
been provided to the Underwriters, were true and correct in all material respects, subject to any qualifications set out therein, as of
the date thereof, and to the Knowledge of the Company, the representations and warranties of Abacus Health Products, Inc. contained
in the Arrangement Agreement were true and correct in all respects, subject to any qualifications set out therein, as of the date thereof
and to the Knowledge of the Company, the covenants of Abacus Health Products, Inc. were complied with, and all closing conditions
were satisfied by Abacus Health Products, Inc. in accordance with the terms of the Arrangement Agreement;

 

		(ttt)	to the Knowledge of the Company, there has been no (i) actual or alleged breach or default by any
party of any provisions of the Arrangement Agreement and no event, condition, or occurrence exists which after the notice or lapse of
time (or both) would constitute a breach or default by any party to the Arrangement Agreement; or (ii) dispute, termination, cancellation,
amendment or renegotiation of the Arrangement Agreement, and, to the Knowledge of the Company, no state of facts giving rise to any of
the foregoing exists;

 

		(uuu)	the Company has a reasonable basis for disclosing any forward-looking information contained in the Final
Offering Documents and is not, as of the date hereof, required to update any such forward looking information pursuant to NI 51-102, and
such forward looking information contained in the Final Offering Documents reflects the best currently available estimates and good faith
judgments of the management of the Company, as the case may be, as to the matters covered thereby;

 

		(vvv)	the U.S. Offering Memorandum has been prepared in a form customary for a Rule 144A offering of equity
securities of a Canadian issuer into the United States concurrent with a public offering in Canada, and does not and will not contain
any material disclosures regarding the Company Group other than as set forth in the Prospectus or in any Prospectus Amendment, if any,
in each case, that is included therein;

 

     

    	 	 	23

    

 

		(www)	except as disclosed in the Final Offering Documents, no member of the Company Group has Knowledge of any
pending or contemplated change to any law, regulation or position of a Governmental Authority that would reasonably be expected to have
a Material Adverse Effect;

 

		(xxx)	the representations and warranties of the Company contained in Schedule A hereto are hereby incorporated
by reference herein and made a part hereof and the Company hereby acknowledges that each Underwriter is relying upon such representations
and warranties.

 

Section 10              Commercial
Copies

 

The Company shall cause commercial
copies of the Final Offering Documents to be printed and delivered to the Underwriters without charge, in such quantities and in such
cities as the Underwriters may reasonably request by written instructions to the printer of such documents. Such delivery of the Final
Offering Documents shall be effected as soon as possible after filing of the Prospectus Supplement with the Canadian Securities Regulators
but, in any event at or before 9:00 a.m. (Toronto time), or such other time as is approved by the Underwriters, acting reasonably,
on the Business Day immediately following the date on which the Prospectus Supplement is filed, or such other date as is approved by the
Underwriters. Such deliveries shall constitute the consent of the Company to the Underwriters’ use of the Final Offering Documents
for the distribution of the Offered Units in compliance with the provisions of this Agreement and the Canadian Securities Laws and United
States Securities Laws. The Company shall similarly cause to be delivered commercial copies of any Offering Document Amendments. The commercial
copies of the Prospectus Supplement shall be identical in content to the electronically transmitted versions thereof filed with Canadian
Securities Regulators on the System for Electronic Document Analysis and Retrieval (SEDAR).

 

Section 11              Change
of the Closing Date

 

		(1)	Subject to the right of any Underwriter to terminate its obligations under this Agreement in accordance
with the termination provisions contained in Section 19, if a material change or a change in a material fact occurs prior to the
Closing Date which requires a Prospectus Amendment to be prepared and filed, the Closing Date shall be, unless the Company and the Underwriters
otherwise agree in writing or unless otherwise required under Canadian Securities Laws, the fifth Business Day following the later of:

 

		(a)	the date on which all applicable filings or other requirements of Canadian Securities Laws with respect
to such material change or change in a material fact have been complied with in all Qualifying Jurisdictions and any appropriate Passport
System receipt(s) obtained for such filings and notice of such filings from the Company or its counsel have been received by the
Underwriters; and

 

		(b)	the date upon which the commercial copies of any Prospectus Amendments have been delivered in accordance
with Section 11,

 

provided, however, that the Closing Date shall not be later
than July 28, 2020.

 

Section 12              Completion
of Distribution

 

The Underwriters shall, after
the Closing Time and, if applicable, the Over-Allotment Option Closing Time, give prompt written notice to the Company when, in the opinion
of the Underwriters, they have completed distribution of the Offered Units or the Additional Units or Additional Shares and/or Additional
Warrants, as the case may be, including the total proceeds realized in each of the Qualifying Jurisdictions and any other jurisdiction
provided that such notice shall be provided on a Business Day no later than 30 days following the date on which such distribution shall
have been completed.

 

     

    	 	 	24

    

 

Section 13              Material
Change or Change in Material Fact During Distribution and Other Covenants

 

		(1)	During the period from the date of this Agreement to the later of the Closing Date and the date of completion
of distribution of the Offered Units under the Final Offering Documents, the Company shall promptly, after receiving notice or obtaining
knowledge of such information, notify the Lead Underwriter in writing of the full particulars of:

 

		(a)	any of the representations or warranties of the Company in this Agreement no longer being true and correct;

 

		(b)	(A) the issuance by any Governmental Authority of any order suspending or preventing the use of the
Final Base Shelf Prospectus, the Prospectus Supplement, the U.S. Offering Memorandum or any Prospectus Amendment or Offering Memorandum
Amendment, (B) the suspension of the qualification of the common shares of the Company or any other security of the Company for offering
or sale in any of the Qualifying Jurisdictions or in the United States, (C) the institution, threatening or contemplation of any
proceeding for any of those purposes, or (D) any request made by any Governmental Authority to amend or supplement the Final Base
Shelf Prospectus, the Prospectus Supplement, the U.S. Offering Memorandum or any Prospectus Amendment or Offering Memorandum Amendment
or for additional information, and the Company will use its reasonable best efforts to prevent the issuance of any such order and, if
any such order is issued, to obtain the withdrawal of the order promptly;

 

		(c)	any material change (whether actual, anticipated, contemplated or proposed by, or threatened) or development
involving a prospective material change in the results of operations, condition (financial or otherwise), business, affairs, prospects,
assets, properties, liabilities (contingent or otherwise), cash flows, income, business operations or capital of the Company, including
any material change to information previously provided to the Underwriters concerning the Company, whether or not arising from transactions
in the ordinary course of business;

 

		(d)	any material fact that has arisen or has been discovered and would have been required to have been stated
in any of the Final Offering Documents had the fact arisen or been discovered on, or prior to, the date of such document; and

 

		(e)	any change in any material fact (which for the purposes of this Agreement shall be deemed to include the
disclosure of any previously undisclosed material fact) contained in any of the Offering Documents, which fact or change is, or may be,
in any case, of such a nature as to render any statement in any of the Offering Documents misleading or untrue or which would result in
a misrepresentation in any of the Offering Documents or which would result in any of the Offering Documents not complying (to the extent
that such compliance is required) with Canadian Securities Laws or United States Securities Laws.

 

		(2)	Subject to Section 7(3), the Company shall promptly, and in any event within any applicable time
limitation, comply, to the satisfaction of the Underwriters, acting reasonably, with all applicable filings and other requirements under
Canadian Securities Laws and United States Securities Laws, as a result of a change or occurrence referred to in Section 13(1), provided
that the Company shall not file any Prospectus Amendment or other document relating to the Offering pursuant to this Section 13(2) without
first obtaining the approval of the Lead Underwriter, on behalf of the Underwriters, after consultation with the Lead Underwriter with
respect to the form and content thereof, which approval will not be unreasonably withheld. The Company shall in good faith discuss with
the Underwriters any such change or occurrence in circumstances (actual, anticipated, contemplated or threatened, financial or otherwise)
which is of such a nature that there is reasonable doubt whether written notice need be given under Section 13(1).

 

     

    	 	 	25

    

 

		(3)	The Company covenants and agrees with the Underwriters that it will:

 

		(a)	promptly provide to the Underwriters, during the period commencing on the date hereof and until completion
of the distribution of the Offered Units, copies of any filings made by the Company of information relating to the Offering with any securities
exchange or any regulatory body in Canada or the United States or any other jurisdiction;

 

		(b)	promptly provide to the Underwriters, during the period commencing on the date hereof and until completion
of the distribution of the Offered Units, drafts of any press releases and other public documents of the Company relating to the Company
or the offering contemplated by this Agreement for review by the Underwriters and the Underwriters’ counsel prior to issuance, provided
that any such review will be completed in a timely manner; and

 

		(c)	deliver to the Underwriters, without charge, in Toronto, Ontario contemporaneously with or prior to the
filing of the Prospectus Supplement or any Prospectus Amendment, a copy of any document required to be filed by the Company, if any, under
Canadian Securities Laws in connection with the Offering.

 

Section 14               Underwriters’
Compensation

 

		(1)	In consideration for the services of the Underwriters under this Agreement (including the ancillary services
of acting as financial advisors to the Company in respect of the issue of the Offered Units and advising on the terms and conditions of
the Offering), the Company will pay to the Underwriters:

 

		(a)	at the Closing Time, in the aggregate, a fee equal to 5.00% of the gross proceeds raised from the sale
of the Initial Units (the “Underwriting Fee”); and

 

		(b)	at the Over-Allotment Option Closing Time, if applicable, a fee equal to 5.00% of the gross proceeds raised
from the sale of the Additional Units.

 

Section 15              Delivery
of Underwriting Fee and Offered Units

 

		(1)	The purchase and sale of the Offered Units shall be completed at the Closing Time at the offices of DLA
Piper (Canada) LLP in Calgary, Alberta or at such other place as the Underwriters and the Company may agree upon.

 

		(2)	At the Closing Time, the Company shall duly deliver the Initial Shares and the Initial Warrants comprising
the Initial Units to the Underwriters, and at the Over-Allotment Option Closing Time, the Company shall duly deliver the Additional Units
or Additional Shares and/or the Additional Warrants to the Underwriters, in each case, in the form of an electronic deposit pursuant to
the non-certificated issue system (the “NCI System”) maintained by CDS Clearing & Depository Services Inc.,
or in the manner directed by the Lead Underwriter in writing, registered in the name of “CDS & Co.”, or in such other
name or names as the Lead Underwriter may notify the Company in writing not less than 48 hours prior to the Closing Time or the Over-Allotment
Option Closing Time, as the case may be. The Initial Units shall be delivered against payment by the Lead Underwriter, on behalf of the
Underwriters, of the aggregate purchase price for the Offered Units, net of the applicable Underwriting Fee, by wire transfer of immediately
available funds to the accounts specified in writing by the Company and legal counsel to the Company and the Additional Units (if any)
shall be delivered against payment by the Lead Underwriter, on behalf of the Underwriters, of the aggregate purchase price for the Additional
Units, net of the applicable Underwriting Fee, by wire transfer of immediately available funds to the accounts specified in writing by
the Company and legal counsel to the Company.

 

     

    	 	 	26

    

 

		(3)	In order to facilitate an efficient and timely closing at the Closing Time and the Over-Allotment Option
Closing Time, as the case may be, the Lead Underwriter, on behalf of the Underwriters, may choose to initiate wire transfers of immediately
available funds prior to the Closing Time or prior to the Over-Allotment Option Closing Time, as the case may be. If the Lead Underwriter
does so, the Company agrees that such transfer of funds prior to the Closing Time and prior to the Over-Allotment Option Closing Time,
as the case may be, does not constitute a waiver by the Underwriters of any of the conditions of Closing or the Over-Allotment Option
Closing set out in this Agreement. Furthermore, the Company agrees that any such funds received by the Company from the Underwriters prior
to the Closing Time or prior to the Over-Allotment Option Closing Time, as the case may be, will be held by the Company in trust solely
for the benefit of the Underwriters until the Closing Time or the Over-Allotment Option Closing Time, as the case may be, and if the Closing
or the Over-Allotment Option Closing, as the case may be, does not occur at the scheduled Closing Time or the Over-Allotment Option Closing
Time, as the case may be, such funds shall be immediately returned by wire transfer to the Lead Underwriter, on behalf of the Underwriters,
without interest. Upon the satisfaction of the conditions of Closing or the Over-Allotment Option Closing, as the case may be, and the
delivery to the Underwriters of the items set out in Section 16, the funds held by the Company in trust for the Underwriters shall
be deemed to be delivered by the Underwriters to the Company in satisfaction of the obligation of the Underwriters under this Section 15
and upon such delivery, the trust constituted by this Section 15 shall be terminated without further formality.

 

Section 16              Delivery
of Offered Units to Transfer Agent

 

		(1)	The Company, prior to the Closing Date or the Over-Allotment Option Closing Date, as the case may be,
shall make all necessary arrangements for the electronic deposit pursuant to the NCI System of the Initial Units or the Additional Units,
Additional Shares and Additional Warrants, as the case may be.

 

		(2)	All fees and expenses payable to the Transfer Agent in connection with the electronic deposit pursuant
to the NCI System of the Initial Units and the Additional Units, Additional Shares and Additional Warrants, as the case may be, contemplated
by this Section 16 and the fees and expenses payable to the Transfer Agent in connection with the initial or additional transfers
as may be required in the course of the distribution of the Offered Units shall be borne by the Company.

 

Section 17              Conditions
to Underwriters’ Obligation to Purchase the Offered Units

 

		(1)	The obligations of the Underwriters to purchase the Initial Units at the Closing Time shall be subject
to the accuracy of the representations and warranties of the Company contained in this Agreement as of the date of this Agreement and
as of the Closing Date, the performance by the Company of their obligations under this Agreement and the following conditions:

 

		(a)	The Underwriters shall have received at the Closing Time a legal opinion dated the Closing Date, in form
and substance satisfactory to the Underwriters, acting reasonably, addressed to the Underwriters and to their counsel from DLA Piper (Canada)
LLP, Canadian counsel to the Company, as to the laws of Canada and the Qualifying Jurisdictions, which counsel in turn may rely upon the
opinions of local counsel where it deems such reliance proper as to the laws of any of the provinces or territories of Canada (or alternatively,
make arrangements to have such opinions directly addressed to the Underwriters, and all of such counsel may rely upon, as to matters of
fact, certificates of public officials and officers of the Company), and letters from stock exchange representatives and transfer agents,
with respect to the following matters:

 

		(i)	as to the incorporation or formation, existence and good standing of the Company under the laws of the
Province of British Columbia;

 

     

    	 	 	27

    

 

		(ii)	as to the adequacy of the corporate power and capacity of the Company to enter into this Agreement and
the Warrant Indenture and to carry out its obligations hereunder;

 

		(iii)	as to the authorized and issued capital of the Company;

 

		(iv)	that the Initial Shares and the Initial Warrants have been duly and validly created and authorized and
are issued and are outstanding as fully paid shares or securities (as the case may be) of the Company and, in the case of the Initial
Shares, are non-assessable;

 

		(v)	that the Additional Shares and the Additional Warrants issuable upon the exercise of the Over-Allotment
Option have been duly authorized by all necessary corporate action of the Company and been duly and validly created, allotted and reserved
for issuance by the Company and, upon the exercise of the Over-Allotment Option including receipt by the Company of payment in full therefor,
the Additional Units, the Additional Shares and the Additional Warrants, as the case may be, will be duly and validly created, authorized,
issued and outstanding as fully paid shares or securities (as the case may be) and, in the case of the Additional Shares, are non-assessable
common shares;

 

		(vi)	the Warrant Shares have been duly and validly allotted and reserved for issuance and upon the proper exercise
of the Warrants in accordance with their terms, the Warrant Shares will be duly and validly issued as fully paid and non-assessable common
shares;

 

		(vii)	that the Company has all requisite corporate power, capacity and authority under the laws of the Province
of British Columbia to carry on its businesses as presently carried on and to own its property and assets as described in the Final Offering
Documents;

 

		(viii)	that all necessary corporate action has been taken by the Company to authorize (i) the execution
and delivery of this Agreement and the Warrant Indenture and the performance of its obligations hereunder, (ii) to offer, issue,
sell and deliver the Initial Shares and the Initial Warrants comprising the Initial Units; (iii) to grant the Over-Allotment Option
and offer, issue, sell and deliver the Additional Units, the Additional Shares and the Additional Warrants issuable upon exercise of the
Over-Allotment Option, as the case may be; and (iv) to issue, sell and deliver the Warrant Shares upon the proper exercise of the
Warrants, and (v) the delivery and, if applicable, the execution and filing of, the Final Base Shelf Prospectus, Prospectus Supplement,
and, if applicable, any Prospectus Amendment, under the Canadian Securities Laws in each of the Qualifying Jurisdictions;

 

		(ix)	that the attributes of the common shares, the proportionate voting shares, preferred shares, the Warrants
and the Warrant Shares conform in all material respects with the descriptions thereof in the Prospectus;

 

     

    	 	 	28

    

 

		(x)	the forms of definitive certificate representing the common shares and the Warrants have been duly approved
and adopted by the Company, comply with applicable laws of the Province of British Columbia and the constating documents of the Company;

 

		(xi)	that each of this Agreement and the Warrant Indenture has been duly authorized, executed and delivered
by the Company and constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with
its terms, subject to customary qualifications for enforceability;

 

		(xii)	that the execution and delivery of this Agreement and the Warrant Indenture and the performance by the
Company of its obligations hereunder and thereunder do not and will not contravene, constitute a default under, or result in any breach
or violation of, (A) any term or provision of the constating documents of the Company, or (B) any laws of the Province of British
Columbia;

 

		(xiii)	that the Transfer Agent has been duly appointed as the registrar and transfer agent for the common shares
and the proportionate voting shares of the Company and as the warrant agent and registrar and transfer agent for the Warrants;

 

		(xiv)	that no authorization, consent or approval of, or filing, registration, permit, license, decree, qualification
or recording with, any Governmental Authority in the Qualifying Jurisdictions is required for the performance by the Company of its obligations
under this Agreement, the consummation of the transactions contemplated by this Agreement, other than those that have been obtained or
made prior to the Closing Time;

 

		(xv)	that the statements under the heading “Eligibility for Investment” in the Final Offering Documents
are accurate, subject to the assumptions, qualifications, limitations and restrictions set out therein;

 

		(xvi)	that, subject to the qualifications, assumptions, limitations and restrictions referred to under the heading
 “Tax Considerations” in the Final Offering Documents, the statements made therein, to the extent that such statements summarize
matters of law or legal conclusions, fairly summarize the matters described therein in all material respects;

 

		(xvii)	that all necessary documents have been filed, all requisite proceedings have been taken, all legal requirements
have been fulfilled and all necessary approvals, permits, consents and authorizations of the Canadian Securities Regulators have been
obtained, in each case by the Company to qualify the Shares and the Warrants for distribution and sale to the public in each of the Qualifying
Jurisdictions through investment dealers or brokers registered in such categories under the applicable laws of the Qualifying Jurisdictions
and who have complied with the relevant provisions of such applicable law;

 

		(xviii)	the issuance by the Company of the Warrant Shares in accordance with and pursuant to the terms and conditions
of the Warrants and the Warrant Indenture is exempt from the prospectus requirements of the Canadian Securities Laws in the Qualifying
Jurisdictions and no prospectus or other document is required to be filed, no proceeding is required to be taken and no approval, permit
or consent of the Canadian Securities Regulators is required to be obtained by the Company under the Canadian Securities Laws in the Qualifying
Jurisdictions to permit such issuance of the Warrant Shares;

 

     

    	 	 	29

    

 

		(xix)	the first trade in Warrant Shares underlying the Warrants is exempt from the prospectus requirements of
the Canadian Securities Laws in the Qualifying Jurisdictions and no prospectus or other document is required to be filed, no proceeding
is required to be taken and no approval, permit, consent or authorization of regulatory authorities is required to be obtained by the
Company under Canadian Securities Laws of the Qualifying Jurisdictions to permit such trade through registrants registered under Canadian
Securities Laws who have complied with such laws and the terms and conditions of their registration, provided that (i) such trade
is not a “control distribution” as that term is defined in National Instrument 45-102 – Resale of Securities at
the time of such trade, (ii) the Company is a reporting issuer (as defined under Canadian Securities Laws) at the time of such first
trade, and (iii) such first trade is not a transaction or series of transactions involving a purchase and sale or a repurchase and
resale in the course of or incidental to a distribution; and

 

		(xx)	relying solely on the conditional approval letter (or equivalent) from the TSX, that the Shares and Warrants
comprising the Initial Units and Additional Units and the Warrant Shares issuable upon the exercise of the Warrants and Additional Warrants
have been conditionally approved for listing on the TSX, subject only to standard listing conditions of the TSX.

 

		(b)	The Underwriters shall have received at the Closing Time a legal opinion dated the Closing Date, in form
and substance satisfactory to the Underwriters, acting reasonably, addressed to the Underwriters from DLA Piper LLP (US), U.S. counsel
to the Company, which counsel in turn may rely upon, as to matters of fact, certificates of public officials and officers of the Company,
and letters from stock exchange representatives and transfer agents, with respect to customary matters.

 

		(c)	The Underwriters shall have received prior to or at the Closing Time a legal opinion, in form and substance
satisfactory to the Underwriters, acting reasonably, from Frost Brown Todd LLC, U.S. regulatory counsel to the Company with respect to
the legal status of hemp-derived products manufactured by the Company.

 

		(d)	The Underwriters shall have received from MNP LLP at the Closing Time a “bring-down” comfort
letter dated the Closing Date, in form and substance satisfactory to the Underwriters, acting reasonably, addressed to the Underwriters
and the directors of the Company, confirming the continued accuracy of the comfort letter to be addressed to the Underwriters and the
directors of the Company pursuant to Section 7(1)(c) with such changes as may be necessary to bring the information in such
letter forward to a date not more than two Business Days prior to the Closing Date, provided such changes are acceptable to the Underwriters,
acting reasonably.

 

		(e)	The Underwriters shall have received from Ernst and Young LLP at the Closing Time a “bring-down”
comfort letter dated the Closing Date, in form and substance satisfactory to the Underwriters, acting reasonably, addressed to the Underwriters
and the directors of the Company, confirming the continued accuracy of the comfort letter to be addressed to the Underwriters and the
directors of the Company pursuant to Section 7(1)(d) with such changes as may be necessary to bring the information in such
letter forward to a date not more than two Business Days prior to the Closing Date, provided such changes are acceptable to the Underwriters,
acting reasonably.

 

		(f)	The Underwriters shall have received from Richter LLP at the Closing Time a “bringdown” comfort
letter dated the Closing Date, in form and substance satisfactory to the Underwriters, acting reasonably, addressed to the Underwriters
and the directors of the Company, confirming the continued accuracy of the comfort letter to be addressed to the Underwriters and the
directors of the Company pursuant to Section 7(1)(e) with such changes as may be necessary to bring the information in such
letter forward to a date not more than two Business Days prior to the Closing Date, provided such changes are acceptable to the Underwriters,
acting reasonably.

 

     

    	 	 	30

    

 

		(g)	The Underwriters shall have received at the Closing Time a certificate dated the Closing Date, addressed
to the Underwriters (and if required for opinion purposes, to counsel to the Underwriters) signed by two senior officers of the Company,
in form and substance satisfactory to the Underwriters, acting reasonably, with respect to the articles, by-laws and other constating
documents of the Company, all resolutions of the board of directors of the Company relating to this Agreement and the transactions contemplated
hereby, and the incumbency and specimen signatures of signing officers of the Company.

 

		(h)	The Underwriters shall have received at the Closing Time a certificate dated the Closing Date, addressed
to the Underwriters and counsel to the Underwriters and signed on behalf of the Company by the Chief Executive Officer and the Chief Financial
Officer of the Company or other senior officers of the Company acceptable to the Underwriters, certifying for and on behalf of the Company
and without personal liability after having made due enquiry and after having examined the Offering Documents, that:

 

		(i)	since the date as of which information is given in the Offering Documents there has been no Material Adverse
Change and that no material transaction has been entered into by any member of the Company Group other than as disclosed in the Offering
Documents;

 

		(ii)	the Final Offering Documents (except any Underwriters’ Information) (i) do not contain a misrepresentation
and contain full, true and plain disclosure of all material facts relating to the Offered Units and the Company, and (ii) do not
contain an untrue statement of a material fact or omit to state a material fact that is required to be stated or that is necessary in
order to make the statements therein, in the light of the circumstances under which they were made, not misleading;

 

		(iii)	no order, ruling or determination having the effect of ceasing the trading or suspending the sale of the
common shares of the Company or any other securities of the Company has been issued by any Governmental Authority and no proceedings for
that purpose have been instituted or are pending or, to the knowledge of such officers, contemplated or threatened by any Governmental
Authority;

 

		(iv)	the Company has complied in all material respects with the terms and conditions of this Agreement on its
part to be complied with at or prior to the Closing Time; and

 

		(v)	the representations and warranties of the Company contained in this Agreement and in any certificates
or other documents delivered by the Company pursuant to or in connection with this Agreement are true and correct in all material respects
as of the Closing Time with the same force and effect as if made at and as of the Closing Time after giving effect to the transactions
contemplated by this Agreement, except in respect of any representations and warranties that are to be true and correct as of a specified
date, in which case they will be true and correct in all material respects as of that date only and in respect of any representations
and warranties that are subject to a materiality qualification, in which case they will be true and correct in all respects;

 

     

    	 	 	31

    

 

	 	 	and all of those matters will
in fact be true and correct as at the Closing Time.
	 	 	 
		(i)	The Company shall have complied in all material respects with the terms and conditions of this Agreement
on its part to be complied with at or prior to the Closing Time.

 

		(j)	The Company, each of its senior officers and directors and any insiders as defined under Canadian Securities
Laws will have executed a lock-up agreement substantially in the same form as executed by the senior officers and directors and any insiders
as defined under Canadian Securities Laws in connection with the Company’s offering of units on December 3, 2019.

 

		(k)	The Underwriters shall have received the Underwriting Fee in respect of the Initial Units.

 

		(l)	The Underwriters shall have received such other closing certificates, opinions, receipts, agreements or
documents as the Underwriters or their counsel may reasonably request.

 

Section 18              Conditions
to the Underwriters’ Obligations to Purchase the Additional Units

 

The several obligations of
the Underwriters to purchase the Additional Units or Additional Shares and/or Additional Warrants, as the case may be, hereunder are subject
to the accuracy of the representations and warranties of the Company contained in this Agreement as of the date of this Agreement and
as of the Closing Date and the Over-Allotment Option Closing Date, the performance by the Company of its obligations under this Agreement,
the delivery to the Underwriters on the Over-Allotment Option Closing Date of letters dated the Over-Allotment Option Closing Date substantially
similar to the letters referred to in Section 17(1)(d) and certificates dated the Over-Allotment Option Closing Date substantially
similar to the certificates referred to in Section 17(1)(h) (in each case as if references therein to the “Closing Date”
were references to the “Over-Allotment Option Closing Date” and references to the “Closing Time” were references
to the “Over-Allotment Option Closing Time”), and such other documents as the Underwriters may reasonably request with respect
to the Company and the delivery of the Additional Units or Additional Shares and/or Additional Warrants, as the case may be.

 

Section 19              Rights
of Termination

 

		(1)	If, prior to the Closing Time, or the Over-Allotment Option Closing Time, as applicable,

 

		(a)	any inquiry, action, suit, investigation or other proceeding (whether formal or informal) is commenced,
announced or threatened or any order is made or issued under or pursuant to any federal, provincial, state, municipal or other governmental
department, commission, board, bureau, agency or instrumentality (including without limitation the TSX or any securities regulatory authority),
other than an inquiry, investigation, proceeding or order based upon the activities of the Underwriters, or there is a change in any law,
rule or regulation, or the interpretation or administration thereof, which, in the reasonable opinion of the Underwriters, operates
to prevent, restrict or otherwise seriously adversely affects the distribution or trading of the common shares of the Company or any other
securities of the Company or the market price or value of the common shares of the Company or the Offered Units;

 

		(b)	there shall occur or come into effect any material change in the business, affairs or financial condition
or financial prospects of the Company, any change in any material fact or new material fact, or there should be discovered any previously
undisclosed fact which, in each case, in the reasonable opinion of the Underwriters, has or could reasonably be expected to seriously
adversely effect the market price or value or marketability of the common shares of the Company or the Offered Units;

 

     

    	 	 	32

    

 

		(c)	there should develop, occur or come into effect or existence any event, action, state, or condition or
any action, law or regulation, inquiry, including, without limitation, terrorism, accident or major financial, political or economic occurrence
of national or international consequence, or any action, government, law, regulation, inquiry or other occurrence of any nature whatsoever
including as a result of any escalation in the severity of the COVID-19 pandemic from the date of this Agreement, which, in the reasonable
opinion of the Underwriters, seriously adversely affects or involves, or may seriously adversely affect or involve, the financial markets
in Canada or the U.S. or the business, operations or affairs of the Company;

 

		(d)	an order shall have been made or threatened to cease or suspend trading in securities of the Company,
or to otherwise prohibit or restrict in any manner the distribution or trading of the common shares of the Company or the Offered Units,
or proceedings are announced or commenced for the making of any such order by any securities regulatory authority or similar regulatory
or judicial authority or the TSX; or

 

		(e)	the Company is in breach of any term, condition or covenant of this Agreement that may not be reasonably
expected to be remedied prior to the Closing Time or any representation or warranty given by the Company becomes false.

 

any of the Underwriters shall be entitled,
at its option and in accordance with Section 19(2), to terminate its obligations under this Agreement by written notice to that effect
given to the Company at or prior to the Closing Time, or the Over-Allotment Option Closing Time, as applicable.

 

		(2)	The rights of termination contained in Section 19(1) may be exercised by any of the Underwriters
with respect to the obligation of such Underwriter, and are in addition to any other rights or remedies that any of the Underwriters may
have in respect of any default, act or failure to act or non-compliance by the Company in respect of any of the matters contemplated by
this Agreement or otherwise. In the event of any such termination, there shall be no further liability on the part of the terminating
Underwriter(s) to the Company, or on the part of the Company to the terminating Underwriter(s), except in respect of any liability
which may have arisen prior to or may arise after such termination under Sections 20, 21 and 23. A notice of termination given by an Underwriter
under Section 19(1) not apply to or be binding upon any other Underwriter.

 

Section 20              Indemnity

 

		(1)	Rights of Indemnity

 

		(a)	The Company agrees to indemnify and save harmless each of the Underwriters and affiliates and its directors,
officers, employees, partners and agents (including, for greater certainty, Selling Firms), and each person, if any, controlling any Underwriter
(collectively, the “Indemnified Parties” and individually an “Indemnified Party”) from and against
all losses, costs, expenses, claims, suits, proceedings, actions, damages and liabilities (other than losses of profit or other consequential
damages in connection with the distribution of the Offered Units), including the aggregate amount paid in reasonable settlement of any
actions, suits, proceedings, investigations or claims, commenced or threatened, and any and all expenses whatsoever including the reasonable
fees and expenses of counsel of any Underwriter that may be incurred in investigating, preparing for and/or defending any action, suit,
proceeding, investigation or claim made or threatened against any Indemnified Party or in enforcing this indemnity (collectively, the
 “Claims”), to which an Indemnified Party may become subject insofar as the Claims are caused by, result from, arise
out of or are based upon, directly or indirectly:

 

		(i)	any information or statement (except any Underwriters’ Information) contained in any Offering Document,
marketing materials or Marketing Materials Amendment, or in any certificate or other document of the Company delivered pursuant to this
Agreement that at the time and in light of the circumstances under which it was made contains or is alleged to contain a misrepresentation;

 

     

    	 	 	33

    

 

		(ii)	any order made or enquiry, investigation or proceedings commenced or threatened by any securities commission,
stock exchange, court or other competent authority, or any change of law or interpretation of administration thereof which prevents or
restricts the trading in or the sale or distribution of the common shares of the Company or the Offered Units in the Qualifying Jurisdictions
or in the United States;

 

		(iii)	the non-compliance or alleged non-compliance, or a breach or violation or alleged breach or violation,
by the Company with any of its obligations under Canadian Securities Laws or United States Securities Laws; or

 

		(iv)	any breach by the Company of its representations, warranties, covenants or obligations to be complied
with under this Agreement or under any other document delivered pursuant to this Agreement.

 

		(2)	Notwithstanding the foregoing, if and only to the extent that and when a court of competent jurisdiction
in a final judgment in a proceeding in which an Indemnified Party is named as a party, from which no appeal can be made, has determined
that a Claim resulted primarily and directly from such Indemnified Party’s gross negligence, bad faith or willful misconduct, the
indemnity provided for in this Section 20 shall cease to apply to such Indemnified Party in respect of such Claim and the Indemnified
Party shall promptly reimburse the Applicable Indemnifier for any funds advanced to the Indemnified Party in respect of such Claim. For
greater certainty, the Company and the Underwriters agree that they do not intend that any failure by any Underwriter to conduct such
reasonable investigation as necessary to provide the Underwriters with reasonable grounds for believing the Offering Documents contained
no misrepresentation shall constitute “wilful misconduct” or “gross negligence” for purposes of this Section 20
or otherwise disentitle the Underwriters from indemnification or contribution from an indemnifying party under this Agreement.

 

		(3)	If any Claim is asserted against any Indemnified Party in respect of which indemnification is or might
reasonably be considered to be sought pursuant to Section 20(1), such Indemnified Party will notify the Company (the “Applicable
Indemnifier”) in writing, as soon as reasonably practicable of the nature of such Claim (but failure or delay to so notify of
any potential Claim shall not relieve the Applicable Indemnifier from any liability which it may have to any Indemnified Party except
that any failure to so notify the Applicable Indemnifier of any actual Claim shall affect the Applicable Indemnifier’s liability
only to the extent that it is materially prejudiced by such failure or delay). The Applicable Indemnifier shall assume the defence of
any suit brought to enforce such Claim; provided, however, that:

 

		(a)	the defence shall be conducted through legal counsel reasonably acceptable to the Indemnified Party; and

 

		(b)	no settlement of any such Claim or admission of liability may be made by the Applicable Indemnifier without
the prior written consent of the Indemnified Parties or unless such settlement, compromise or judgment: (A) includes an unconditional
release of each Indemnified Party from all liability arising out of such Claim; and (B) does not include a statement as to or an
admission of fault, culpability or failure to act, by or on behalf of any Indemnified Party.

 

     

    	 	 	34

    

 

		(4)	With respect to any Indemnified Party who is not a party to this Agreement, the Underwriters shall obtain
and hold the rights and benefits of this Section 20 in trust for and on behalf of such Indemnified Party.

 

		(5)	In any Claim, the Indemnified Party shall have the right to retain one other counsel in each jurisdiction
to act on its behalf, provided that the fees and disbursements of such counsel shall be paid by the Indemnified Party, unless:

 

		(a)	the Applicable Indemnifier and the Indemnified Party shall have mutually agreed to the retention of the
other counsel;

 

		(b)	the named parties to any such Claim (including any added third or impleaded party) include both the Indemnified
Party and the Applicable Indemnifier, and the Indemnified Party shall have reasonably concluded that there may be legal defences available
to the Indemnified Party that are different or in addition to those available to the Company or the Indemnified Party shall have been
advised in writing by legal counsel that the representation of both parties by the same counsel would be inappropriate due to the actual
or potential differing interests between them; or

 

		(c)	the Applicable Indemnifier shall not have assumed responsibility for the Claim and retained acceptable
counsel within 14 days following receipt by the Company of notice of any such Claim from the Indemnified Party;

 

provided, however, that no settlement
of any such Claim or admission of liability may be made by the Indemnified Party without the prior written consent of the Applicable Indemnifier,
which consent will not be unreasonably withheld or delayed, but further provided that the Indemnifying Party will be liable for the settlement
of any such Claim effected without its prior written consent if (i) the Indemnified Party shall have requested the Indemnifying Party
to reimburse the Indemnified Party for the fees and expenses of counsel, (ii) the settlement is entered into more than 45 days after
receipt by the Indemnifying Party of such request, (iii) the Indemnifying Party shall have received notice of the terms of such settlement
at least 30 days prior to such settlement being entered into, and (iv) the Indemnifying Party shall not have reimbursed the Indemnified
Party in accordance with such request prior to the date of such settlement.

 

		(6)	The rights and remedies accorded to the Indemnified Parties under this Section 20 are not exclusive
and shall not limit any rights or remedies which may be available to any Indemnified Party at law, in equity or otherwise.

 

Section 21       Contribution

 

		(1)	In order to provide for a just and equitable contribution in circumstances in which the indemnity provided
in Section 20 would otherwise be available in accordance with its terms but is, for any reason, held to be unavailable to, or unenforceable
by the Underwriters, or enforceable otherwise than in accordance with its terms, the Applicable Indemnifier, on the one hand, and the
Underwriters, on the other hand, shall:

 

		(a)	contribute to the aggregate of all claims, expenses, costs and liabilities and all losses of a nature
contemplated by Section 20 in such proportions so that the Indemnified Parties shall be responsible for the portion represented by
the percentage that the aggregate Underwriting Fee payable to the Underwriters hereunder bears to the aggregate offering price of the
Offered Units, and the Applicable Indemnifier shall be responsible for the balance, whether or not they have been sued or sued separately;
and

 

     

     

    

	 	35

 

		(b)	if the allocation provided by Section 21(1)(a) above is not permitted by applicable law, the
Applicable Indemnifier and the Indemnified Parties shall contribute such proportions as is appropriate to reflect not only the relative
benefits referred to in Section 21(1)(a) above but also the relative fault of the Applicable Indemnifier, on the one hand, and
the Indemnified Parties, on the other hand, in connection with the Claim or Claims which resulted in such losses, claims, damages, liabilities,
costs or expenses, as determined by final judgment of a court of competent jurisdiction, as well as any other relevant equitable considerations;

 

provided, however, that: (a) the
Indemnified Parties shall not in any event be liable to contribute, in the aggregate, any amounts in excess of such aggregate Underwriting
Fee or any portion of such fee actually received under this Agreement; (b) each Indemnified Party shall not in any event be liable
to contribute, individually, any amount in excess of such Indemnified Party’s portion of the aggregate Underwriting Fee or any portion
of such fee actually received by the applicable Underwriter under this Agreement; and (c) no party who has been determined by a court
of competent jurisdiction in a final, non-appealable judgment to have engaged in any fraud, wilful default or gross negligence in connection
with the Claim or Claims which resulted in such losses, claims, damages, liabilities, costs or expenses shall be entitled to claim contribution
from any person who has not been determined by a court of competent jurisdiction in a final, non-appealable judgment to have engaged in
such fraud, wilful default or gross negligence in connection with such Claim or Claims.

 

		(2)	The rights to contribution provided in this Section 21 shall be in addition to and not in derogation
of any other right to contribution which the Indemnified Parties may have by statute or otherwise at law or in equity.

 

		(3)	In the event that the Applicable Indemnifier may be held to be entitled to contribution from the Indemnified
Parties under the provisions of any statute or at law, the Applicable Indemnifier shall be limited to contribution in an amount not exceeding
the lesser of:

 

		(a)	the portion of the full amount of the loss or liability giving rise to such contribution for which the
Indemnified Parties are responsible, as determined in Section 21(1)(a); and

 

		(b)	the amount of the Underwriting Fee actually received by the Indemnified Parties under this Agreement;

 

and an Underwriter shall in no event
be liable to contribute any amount in excess of such Underwriter’s portion of the Underwriting Fee actually received under this
Agreement.

 

		(4)	If the Underwriters have reason to believe that a claim for contribution may arise, they shall give the
Applicable Indemnifier notice of such claim in writing, as soon as reasonably possible, but failure or delay to so notify the Company
shall not relieve such Applicable Indemnifier of any obligation which it may have to the Underwriters under this Section 21.

 

		(5)	With respect to this Section 21, the Company acknowledges and agrees that the Underwriters are contracting
on their own behalf and as agents for their affiliates, directors, officers, employees and agents, and each person, if any, controlling
any Underwriter or any of its subsidiaries and each shareholder of any Underwriters.

 

		(6)	The rights and remedies provided for in this Section 21 are not exclusive and shall not limit any
rights or remedies which may be available to any party at law, in equity or otherwise.

 

     

     

    

	 	36

 

Section 22       Severability

 

If any provision of this Agreement
is determined to be void or unenforceable in whole or in part, it shall be deemed not to affect or impair the validity of any other provision
of this Agreement and such void or unenforceable provision shall be severable from this Agreement.

 

Section 23       Expenses

 

		(1)	Whether or not the transactions contemplated by this Agreement shall be completed, all expenses of or
incidental to the issue, sale and delivery of the Offered Units and all reasonable expenses of or incidental to all other matters in connection
with the transactions set out in this Agreement shall be borne by the Company, including, without limitation, all fees and expenses payable
in connection with the qualification of the Offered Units for distribution and expenses with respect to the delivery of the Offered Units,
all fees relating to arranging for clearance and settlement arrangements, all fees and disbursements of counsel to the Company (including
local counsel), all fees and expenses of the Company’s auditors, accountants, translators, consultants and other advisors, all costs
incurred in connection with the preparation, translation, filing and printing of the Offering Documents, the marketing materials and any
Marketing Materials Amendment, “green sheets” and certificates, if any, representing the Offered Units (including any transfer
taxes and any stamp or other duties payable upon the sale, issuance and delivery of the Offered Units to the Underwriters), all filing
fees, fees of counsel and expenses incurred by the Company or reasonably incurred by the Underwriters in connection with qualifying or
registering (or obtaining exemptions from the qualification or registration of) all or any part of the Offered Units for offer and sale
under the ‘Blue Sky’ laws and, if requested by the Underwriters, preparing and printing a ‘Blue Sky Survey’ or
memorandum, and any supplements thereto, and advising the Underwriters of such qualifications, registrations and exemptions, the fees
and expenses of the Transfer Agent, the fees and expenses relating to the preparation, issuance and delivery of this Agreement, any agreement
among the Underwriters and such other documents as may be required in connection with the offering, purchase, sale, issuance or delivery
of the Offered Units, all reasonable expenses associated with any roadshows and marketing and due diligence activities of the Company,
and all taxes eligible in respect of any of the foregoing.

 

		(2)	Whether or not the transactions contemplated by this Agreement shall be completed, the Company shall be
responsible for (a) the fees and disbursements of the Underwriters’ legal counsel incurred in connection with the Offering
up to a maximum of US$150,000 (exclusive of any goods and services tax or similar tax), and (b) the reasonable out-of-pocket expenses
of the Underwriters (not related to legal fees of the Underwriters) incurred in connection with the Offering, including, without limitation,
any advertising, marketing, roadshow, printing, courier, telecommunications, data searches, presentation, travel, entertainment and other
expenses, together with all taxes eligible in respect of any of the foregoing.

 

		(3)	All fees and expenses incurred by the Underwriters which are required to be borne by the Company hereunder,
shall be payable by the Company promptly upon receiving an invoice therefor from the Underwriters.

 

		(4)	To the extent applicable, all expenses and other amounts payable under the terms of this Agreement shall
be paid without any set-off.

 

     

     

    

	 	37

 

Section 24       Obligations
to Purchase

 

		(1)	Subject to the terms and conditions of this Agreement, the obligation of the Underwriters to purchase
the Initial Units at the Closing Time or the Additional Units, Additional Shares or Additional Warrants at the Over-Allotment Option Closing
Time, as the case may be, shall be several and not joint (or joint and several) and shall be limited to the percentage of the Initial
Units or the Additional Units, Additional Shares or Additional Warrants, as the case may be, set out opposite the name of the respective
Underwriters below:

 

	Canaccord Genuity Corp.	 	 	60.0	%
	Cormark Securities Inc.	 	 	25.0	%
	Eight Capital	 	 	10.0	%
	PI Financial Corp.	 	 	5.0	%
	TOTAL	 	 	100	%

 

		(2)	Subject to Section 24(4), if an Underwriter (a “Refusing Underwriter”) shall fail
to purchase its applicable percentage of the Initial Units or the Additional Units, Additional Shares or Additional Warrants, as the case
may be (the “Defaulted Securities”), at the Closing Time or the Over-Allotment Option Closing Time, as the case may
be, the remaining Underwriters (the “Continuing Underwriters”) will be entitled, at their option, to purchase, severally
and not jointly (or jointly and severally), all but not less than all of the Defaulted Securities on a pro rata basis among the
Continuing Underwriters or in any other proportion agreed upon in writing by such Continuing Underwriters. If no such arrangement has
been made and the number of Defaulted Securities to be purchased by the Refusing Underwriters is equal to or less than 10% of the
total number of the Initial Units or the Additional Units, Additional Shares or Additional Warrants, as the case may be, the Continuing
Underwriters will be obligated to purchase, severally and not jointly (or jointly and severally), the Defaulted Securities on the terms
set out in this Agreement in such proportions, provided that the Continuing Underwriters shall have the right to postpone the Closing
Time or the Over-Allotment Option Closing Time, as applicable, for such period not exceeding five Business Days as they shall determine
and notify the Company in order that the required changes, if any, to the Final Offering Documents or to any other documents or arrangements
may be effected. If the number of Defaulted Securities to be purchased by the Refusing Underwriters is greater than 10% of the total number
of the Initial Units or the Additional Units, Additional Shares or Additional Warrants, as the case may be, the Continuing Underwriters
will not be obliged to purchase the Defaulted Securities and, if the Continuing Underwriters do not elect to purchase the Defaulted Securities,
the Continuing Underwriters will not be obliged to purchase any of the Initial Units or the Additional Units, Additional Shares or Additional
Warrants, as the case may be, and, subject to the next sentence, there shall be no further liability or obligation on the part of the
Company or the Underwriters except in respect of any liability which may have arisen or may arise under Section 20 and Section 21.

 

		(3)	If the amount of the Initial Units or the Additional Units, Additional Shares or Additional Warrants,
as the case may be, that the Continuing Underwriters wish to purchase exceeds the amount of the Initial Units or the Additional Units,
Additional Shares or Additional Warrants, as the case may be, that would otherwise have been purchased by an Underwriter that is in default,
such Initial Units or Additional Units, Additional Shares or Additional Warrants, as the case may be, shall be divided pro rata among
the Continuing Underwriters desiring to purchase such Initial Units or Additional Units, Additional Shares or Additional Warrants, as
the case may be.

 

		(4)	In the event that one or more but not all of the Underwriters shall exercise their right of termination
under Section 19, the Continuing Underwriters shall have the right, but shall not be obligated, to purchase all of the percentage
of the Initial Units or Additional Units, Additional Shares or Additional Warrants, as the case may be, that would otherwise have been
purchased by such Underwriters which have so exercised their right of termination. If the amount of such Initial Units or Additional Units,
Additional Shares or Additional Warrants, as the case may be, that the Continuing Underwriters wish, but are not obliged, to purchase
exceeds the amount of such Initial Units or Additional Units, Additional Shares or Additional Warrants, as the case may be, which remain
available for purchase, such Initial Units or Additional Units, Additional Shares or Additional Warrants, as the case may be, shall be
divided pro rata among the Underwriters desiring to purchase such Initial Units or Additional Units, Additional Shares or Additional
Warrants, as the case may be.

 

     

     

    

	 	38

 

Section 25       Restrictions
of Further Issuances and Sales

 

During the period beginning
on the Closing Date and ending on the date that is 90 days after the Closing Date, the Company shall not, directly or indirectly, without
the prior written consent of the Lead Underwriter, on behalf of all of the Underwriters, acting reasonably, offer, issue, sell, grant,
secure, pledge, or otherwise transfer, dispose of or monetize, or engage in any hedging transaction, or enter into any form of agreement
or arrangement the consequence of which is to alter economic exposure to, or announce any intention to do so, in any manner whatsoever,
any common shares of the Company or securities convertible into, exchangeable for, or otherwise exercisable to acquire common shares of
the Company or other equity securities of the Company, other than (i) grants of stock options or other similar issuances pursuant
to the share incentive plan of the Company and other share compensation arrangements or Employee Plans, provided that the exercise price
in respect of any stock option grant is not less than the offering price of the Shares; (ii) the exercise of outstanding warrants;
(iii) obligations of the Company in respect of existing agreements; or (iv) the issuance of securities by the Company in connection
with acquisitions in the normal course of business.

 

Section 26       Stabilization

 

In connection with the distribution
of the Offered Units, the Underwriters and the Selling Firms, if any, may over-allot or effect transactions which stabilize or maintain
the market price of the common shares at levels other than those which might otherwise prevail in the open market, in compliance with
applicable Canadian Securities Laws and the rules and regulations of applicable stock exchanges. Those stabilizing transactions,
if any, may be discontinued at any time.

 

Section 27       Survival
of Representations and Warranties

 

The representations, warranties,
obligations and agreements of the Company contained in this Agreement and in any certificate delivered pursuant to this Agreement or in
connection with the purchase and sale of the Offered Units shall survive the purchase of the Offered Units, with such representations,
warranties, obligations and agreements of the Company to survive and continue in full force and effect for a period ending on the latest
date under each of: (a) applicable Canadian laws that a holder of the Offered Units may be entitled to commence an action or exercise
a right of rescission with respect to a misrepresentation contained in the Prospectus or any Prospectus Amendment, and (b) applicable
U.S. laws that a holder of the Securities may be entitled to commence an action with respect to an untrue statement of a material fact
contained in the U.S. Offering Memorandum or any Offering Memorandum Amendment or an omission to state in the U.S. Offering Memorandum
or any Offering Memorandum Amendment a material fact that is necessary to make a statement contained in the U.S. Offering Memorandum or
any Offering Memorandum Amendment, in light of the circumstances in which it was made, not misleading; provided, however, (a) the
representations, warranties, obligations and agreements of the Company contained in this Agreement and in any certificate delivered pursuant
to this Agreement or in connection with the purchase and sale of the Offered Units shall survive during the pendency of any Claim commenced
prior to the expiry of either of the foregoing periods, including all appeals thereof, and (b) the indemnification obligations of
the Company set forth in Section 20 shall survive indefinitely; and, in each case, the representations, warranties, obligations and
agreements of the Company contained in this Agreement shall continue in full force and effect unaffected by any subsequent disposition
of the Offered Units by the Underwriters or the termination of the Underwriters’ obligations and shall not be limited or prejudiced
by any investigation made by or on behalf of the Underwriters in connection with the preparation of the Offering Documents or the distribution
of the Offered Units.

 

Section 28       Time
and Assignment

 

		(1)	Time is of the essence in the performance of the parties’ respective obligations under this Agreement.

 

     

     

    

	 	39

 

		(2)	The terms and provisions of this Agreement will be binding upon and inure to the benefit of the Company
and the Underwriters and their respective successors and assigns; provided that, except as otherwise provided in this Agreement, this
Agreement will not be assignable by any party without the written consent of the others and any purported assignment without such consent
will be invalid and of no force and effort.

 

Section 29       Governing
Law

 

This Agreement shall be governed
by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

 

Section 30       No
Fiduciary Duty

 

The Company hereby acknowledges
that (i) the offer and sale of the Offered Units pursuant to this Agreement is an arm’s-length commercial transaction between
the Company, on the one hand, and the Underwriters, on the other hand; (ii) each Underwriter is acting as principal and not as an
agent or fiduciary of the Company; and (iii) the Company’s engagement of the Underwriters in connection with the Offering and
the process leading up to the Offering is as independent contractors and not in any other capacity. Furthermore, the Company agrees that
it is solely responsible for making its own judgments in connection with the Offering (irrespective of whether any of the Underwriters
has advised or is currently advising the Company on related or other matters). The Company agrees that it will not claim that any Underwriter
has rendered advisory services of any nature or respect, or owes an agency, fiduciary or similar duty to the Company in connection with
such transaction or the process leading thereto.

 

Section 31       Notice

 

		(1)	Unless otherwise expressly provided in this Agreement, any notice or other communication to be given under
this Agreement (a “notice”) shall be in writing addressed as follows:

 

		(a)	If to the Company, addressed and sent to:

 

1720 Bellaire Street, Suite 600

Denver, CO 80222

 

		Attention:	Deanie Elsner, Chief Executive Officer

		E-mail:	[REDACTED - Email Address]

 

with a copy (which shall not constitute notice) sent to:

 

DLA Piper (Canada) LLP

Suite 1000, Livingston Place West

250 2nd Street West

Calgary, Alberta

T2P 0CI

 

		Attention:	Jarrod Isfeld

		E-mail:	[REDACTED - Email Address]

 

		(b)	If to an Underwriter, addressed and sent in accordance with the details noted below:

 

If to Canaccord Genuity Corp., addressed and sent to:

 

161 Bay Street, Suite 3100

Toronto, Ontario

M5J 2S1

 

		Attention:	Steve Winokur

		E-mail:	[REDACTED - Email Address]

 

     

     

    

	 	40

  

If to Cormark Securities Inc., addressed and sent to:

 

200 Bay Street, Suite 2800

Toronto, Ontario

M5J 2J2

 

		Attention:	Alfred Avanessy

		E-mail:	[REDACTED - Email Address]

 

If to Eight Capital addressed and sent to:

 

100 Adelaide Street West, Suite 2900

Toronto, Ontario

M5L 1S3

 

		Attention:	Patrick McBride

		E-mail:	[REDACTED - Email Address]

 

If to PI Financial Corp. addressed and sent to:

 

40 King Street West

Toronto, Ontario

M5H 3Y2

 

		Attention:	Blake Corbet

		E-mail:	[REDACTED - Email Address]

 

and in each case with a copy (which shall not constitute notice)
sent to:

 

Stikeman Elliott LLP

5300 Commerce Court West

199 Bay Street

Toronto, Ontario

M5L 1B9

 

		Attention:	Martin Langlois

		E-mail:	[REDACTED - Email Address]

 

or to such other address as any of the parties may designate by giving
notice to the others in accordance with this Section 31.

 

		(2)	Each notice shall be personally delivered to the addressee or sent by e-mail to the addressee and:

 

		(a)	a notice that is personally delivered shall, if delivered on a Business Day, be deemed to be given and
received on that day and, in any other case, be deemed to be given and received on the first Business Day following the day on which it
is delivered; and

 

		(b)	a notice that is sent by e-mail shall be deemed to be given and received on the first Business Day following
the day on which it is sent.

 

     

     

    

	 	41

 

Section 32       Authority
of the Lead Underwriter and Underwriters

 

The Lead Underwriter is hereby
authorized by each of the other Underwriters to act on its behalf, and the Company shall be entitled to and shall act on any notice given
in accordance with Section 31 jointly by the Lead Underwriter or any agreement entered into by or on behalf of the Underwriters by
the Lead Underwriter, which represent and warrant that they have irrevocable authority to bind the Underwriters, except in respect of:
(i) a settlement of an indemnity claim pursuant to Section 20, which settlement shall be made by the Indemnified Party; or (ii) a
notice of termination pursuant to Section 18, which notice may be given by any of the Underwriters exercising such right. The Lead
Underwriter shall, where practicable, consult with the other Underwriters concerning any matter in respect of which they act as representative
of the Underwriters.

 

Section 33       Joint
and Several Liability

 

In the event that there is
no Closing for any reason whatsoever, and notwithstanding any other provision of this Agreement, Charlotte’s Web, Inc. is jointly
and severally liable with the Company, as a principal and not as a surety, with respect to all of the representations, warranties, covenants,
indemnities and agreements of the Company.

 

Section 34       Counterparts

 

This Agreement may be executed
by the parties to this Agreement in counterpart and may be executed and delivered by electronic transmission and all such counterparts
and electronic transmissions shall together constitute one and the same agreement.

 

Section 35       Entire
Agreement

 

		(1)	The terms and conditions of this Agreement supersede any previous verbal or written agreement between
the Underwriters (or any of them) and the Company with respect to the subject matter hereof.

 

		(2)	If the foregoing is in accordance with your understanding and is agreed to by you, please signify your
acceptance by executing the enclosed copies of this Agreement where indicated below and returning the same to the Lead Underwriter upon
which this letter as so accepted shall constitute an agreement among us.

 

[Remainder of this page is intentionally left blank.
Signature page follows.]

 

     

     

    

 

Yours very truly,

 

	 	CANACCORD GENUITY CORP.

 

		By:	(signed) “Steve
                                            Winokur”

		Name:	Steve Winokur

		Title:	Managing Director

 

	 	CORMARK SECURITIES INC.

 

		By:	(signed) “Alfred
                                            Avanessy”

		Name:	Alfred Avanessy

		Title:	Managing Director, Head of Investment Banking

 

	 	EIGHT CAPITAL

 

		By:	(signed) “Patrick
                                            McBride”

		Name:	Patrick McBride

		Title:	Head of Origination

 

	 	PI FINANCIAL CORP.

 

		By:	(signed) “Blake
                                            Corbet”

		Name:	Blake Corbet

		Title:	Managing Director, Investment Banking

 

[Signature Page to
Underwriting Agreement]

 

     

     

    

 

	 	43

 

The foregoing offer is accepted and agreed to as of the date first
above written.

 

	 	CHARLOTTE’S WEB HOLDINGS, INC.

 

		By:	(signed) “Adrienne
                                            Elsner”

		Name:	Adrienne Elsner

		Title:	Chief Executive Officer

 

[Signature Page to Underwriting Agreement]

 

     

     

    

 

SCHEDULE A

UNITED STATES OFFERS AND SALES

 

		1.	Definitions

 

As used in this Schedule A, the following terms shall have
the meanings indicated:

 

“General Solicitation”
and “General Advertising” mean “general solicitation” and “general advertising”, respectively, as
used in Rule 502(c) under the 1933 Act, including advertisements, articles, notices or other communications published in any
newspaper, magazine or similar media or broadcast over radio or television or the internet, or any seminar or meeting whose attendees
had been invited by general solicitation or general advertising;

 

“Investment Company
Act” means the United States Investment Company Act of 1940, as amended, and the rules and regulations promulgated thereunder;

 

“Qualified Institutional
Buyer” means a “qualified institutional buyer” as such term is defined in Rule 144A;

 

“Shares”
means the Offered Units;

 

“United States”
means the United States of America, its territories and possessions, any state of the United States and the District of Columbia;

 

“U.S. Affiliate”
of any Underwriter means the U.S. registered broker-dealer affiliate of such Underwriter; and

 

“U.S. Exchange Act”
means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

All other capitalized terms
used but not otherwise defined in this Schedule A shall have the meanings given to them in the Underwriting Agreement to which this Schedule
A is attached and of which this Schedule A forms a part.

 

		2.	Representations, Warranties and Covenants of the Company

 

The Company represents, warrants
and covenants to the Underwriters and their U.S. Affiliates that:

 

(a)            neither
the Company nor any of its affiliates, nor any person acting on its or their behalf (other than the Underwriters, the U.S. Affiliates
or any members of the banking and selling group formed by them, as to whom the Company makes no representation), has taken or will knowingly
take any action that would cause the applicable exemption or exclusion from registration under the 1933 Act afforded by Rule 144A
(or any other U.S. private resale exemption thereunder being relied upon in connection with offers and sales of the Shares) to be unavailable
for offers and sales of the Shares pursuant to this Agreement;

 

(b)            none
of the Company, any of its affiliates or any person acting on its or their behalf (other than the Underwriters, the U.S. Affiliates or
any members of the banking and selling group formed by them, as to whom the Company makes no representation) has offered or will knowingly
offer to sell, or has solicited or will solicit offers to buy, any of the Shares in the United States by means of any form of General
Solicitation or General Advertising or in any manner involving a public offering within the meaning of Section 4(a)(2) of the
1933 Act;

 

    A-1 

     

    

 

	 	2

 

(c)            the
Shares are not, and as of the Closing will not be, and no securities of the same class as the Shares are: (i) listed on a national
securities exchange in the United States registered under Section 6 of the U.S. Exchange Act; (ii) quoted in an “automated
inter-dealer quotation system”, as such term is used in the U.S. Exchange Act; or (iii) convertible or exchangeable at an effective
conversion premium (calculated as specified in paragraph (a)(6) of Rule 144A) upon issuance of less than ten percent for securities
so listed or quoted;

 

(d)            in
connection with the initial resale of the Shares to Qualified Institutional Buyers in the offering of the Shares, the Company shall make
available to such Qualified Institutional Buyers the information required to be provided pursuant to Rule 144A(d)(4) under the
1933 Act; and

 

(e)            the
Company is not, and after giving effect to the offering of the Shares and the application of the proceeds as contemplated herein and the
U.S. Offering Documents will not be, registered as an investment company nor will it be required to register as an investment company
within the meaning of the Investment Company Act.

 

		3.	Representations, Warranties and Covenants of the Underwriters

 

Each Underwriter and U.S.
Affiliate jointly and not severally (but not jointly with any other Underwriter or its respective U.S. Affiliate), acknowledges, represents,
warrants and covenants to the Company that:

 

(a)            the
Shares have not been and will not be registered under the 1933 Act or any U.S. state securities laws and may be offered and sold only
in transactions exempt from or not subject to the registration requirements of the 1933 Act and applicable state securities laws. It has
not offered and sold, and will not offer and sell, any Shares except to persons it reasonably believes to be Qualified Institutional Buyers
as defined in Rule 144A under the 1933 Act;

 

(b)            it
and its affiliates, including its U.S. Affiliate, have not, either directly or through a person acting on its or their behalf, solicited
and will not solicit offers for, and have not offered to sell and will not offer to sell, any of the Shares in the United States by any
form of General Solicitation or General Advertising or in any manner involving a public offering within the meaning of Section 4(a)(2) of
the 1933 Act;

 

(c)            it
has not entered and will not enter into any contractual arrangement with respect to the distribution of the Shares, except with its U.S.
Affiliate, any selling group members or with the prior written consent of the Company;

 

(d)            it
shall require each selling group member to agree, for the benefit of the Company, to comply with, and shall use its commercially reasonable
efforts to ensure that each selling group member complies with, the provisions of this Schedule A applicable to the Underwriter as if
such provisions applied to such selling group member;

 

(e)            all
offers and sales of Shares in the United States shall be made by the Underwriter through its U.S. Affiliate (which on the dates of such
offers and sales was and will be duly registered as a broker-dealer under the U.S. Exchange Act and under all applicable state securities
laws and a member of, and in good standing with, the Financial Industry Regulatory Authority, Inc.) or otherwise pursuant to Rule 15a-6
under the U.S. Exchange Act in accordance with all applicable broker-dealer laws and in compliance with this Schedule A;

 

(f)            each
U.S. Affiliate selling the Shares in the United States is a Qualified Institutional Buyer;

 

    A-2 

     

    

 

	 	3

 

(g)            it
will solicit (and will cause its U.S. Affiliate to solicit, as applicable) offers for the Shares in the United States only from, and will
offer the Shares only to persons whom it reasonably believes to be Qualified Institutional Buyers in accordance with Rule 144A;

 

(h)            it
will inform (and will cause its U.S. Affiliate to inform, as applicable) all purchasers of the Shares in the United States or who were
offered Shares in the United States that the Shares have not been and will not be registered under the 1933 Act and are being offered
and sold to such purchasers without registration in reliance on the exemption from the registration requirements of the 1933 Act provided
by Rule 144A (or any other U.S. private resale exemption thereunder being relied upon in connection with offers and sales of the
Shares to such purchasers); and

 

(i)            prior
to the Closing Time, it will deliver signed copies of the U.S. Investor Letter, in substantially the same form appended to the U.S. Offering
Documents, from all persons in the United States to which it has sold Shares.

 

    A-3Exhibit 10.33

 

EQUITY DISTRIBUTION AGREEMENT

 

June 3, 2021

 

Charlotte’s Web Holdings, Inc.

1600 Pearl Street, Suite 300

Boulder, CO 80302

 

Attention: Adrienne Elsner and Russell Hammer

 

Ladies and Gentleman:

 

		Re:	ATM Distribution Plan

 

Canaccord Genuity Corp. (“Canaccord”)
and BMO Nesbitt Burns Inc. (“BMO” and together with Canaccord, the “Agents”) understand that Charlotte’s
Web Holdings, Inc. (the “Corporation”) has filed a short form base shelf prospectus dated May 5, 2021 (the
 “Base Shelf Prospectus”) with the securities regulatory authority in each of the Qualifying Jurisdictions (as defined
herein) relating to the issue and sale of up to $350,000,000 aggregate amount of securities of the Corporation, including the Offered
Shares (as defined herein), and has received a final receipt pursuant to the Passport System (as defined herein) evidencing that a final
receipt for the Base Shelf Prospectus has been issued, or deemed to have been issued, by the regulators in each of the Qualifying Jurisdictions.
The Agents further understand that, in filing the Base Shelf Prospectus, the Corporation has selected the OSC (as defined herein) as the
principal regulator under Part 3 of NP 11-202 (as defined herein).

 

Pursuant to the terms and conditions hereof, the
Agents confirm that they are prepared to act as the sole and exclusive agents of the Corporation to offer common shares of the Corporation
(“Common Shares”) having an aggregate offering price of up to $60,000,000 of Common Shares in the capital of the Corporation
(the “Offered Shares”) for sale to the public from time to time under the Base Shelf Prospectus, as supplemented by
a Prospectus Supplement (as defined herein), pursuant to “at-the-market distributions” within the meaning of NI 44-102
(as defined herein) during the period in which the Base Shelf Prospectus is effective, subject to earlier termination hereunder.

 

The following are the terms and conditions of
this Agreement:

 

		1.	DEFINITIONS AND INTERPRETATION

 

		1.1	Definitions. In this Agreement (including the Schedules hereto), unless the context otherwise requires:

 

“Acquired Business”
means any entity or business (other than the Corporation) whose financial statements are included or incorporated by reference in the
Prospectus;

 

“Acquired Business Financial
Statements” means, collectively, the audited and any unaudited financial statements of any Acquired Business that are included
or incorporated (or deemed to be incorporated) by reference in the Prospectus, together with the notes thereto and, in the case of audited
financial statements, the auditor’s report thereon;

 

“Act” means the Securities
Act (Ontario);

 

     

     

    

 

“affiliate” has the
meaning given thereto in NI 51-102;

 

“Agents” has the
meaning given thereto in the first paragraph on the first page of this Agreement;

 

“Agents’ Fee”
has the meaning given thereto in Section 2.4;

 

“Agents’ Information”
means, in respect of the Prospectus, any statements contained therein relating solely to and furnished in writing to the Corporation by
the Agents expressly for purposes of inclusion therein;

 

“Agreement” means
and refers to this equity distribution agreement between the Corporation and the Agents resulting from the mutual execution and delivery
of this agreement, and does not refer to any particular section, paragraph or other part of this equity distribution agreement;

 

“ATM Distribution”
means a distribution of Offered Shares that constitutes an “at-the-market distribution” within the meaning of NI 44-102;

 

“Auditors” means
Ernst & Young LLP, being the current auditors of the Corporation, or any other auditors of the Corporation from time to time;

 

“Authorized Representatives”
means, for a Party, the Designated Representatives of that Party who are identified in Schedule A hereto (as such Schedule A may be amended
from time to time by any Party by notice to the other Party as provided herein, which amendment shall be effective upon all Parties mutually
agreeing in writing to an amended and restated form of Schedule A) as being Authorized Representatives of that Party;

 

“Base Shelf Prospectus”
has the meaning given thereto in the first paragraph on the first page of this Agreement;

 

“Bringdown Certificate”
has the meaning given thereto in Section 9.3;

 

“Business Acquisition Report”
has the meaning given thereto in NI 51-102;

 

“Business Day” means
any day on which the TSX and chartered banks in Toronto, Ontario, are open for business and a day on which the TSX is open for trading;

 

“Charlotte’s Web, Inc.”
means Charlotte’s Web, Inc., a Delaware corporation, a wholly owned subsidiary of the Corporation;

 

“Claims” has the
meaning given thereto in Section 1.1 of Schedule F;

 

“Common Shares” has
the meaning given thereto in the second paragraph on the first page of this Agreement;

 

“Corporation’s Counsel”
means DLA Piper (Canada) LLP, Canadian counsel to the Corporation, and, where applicable, other external counsel of the Corporation from
time to time in the United States and any other jurisdiction where the Corporation or any of its Subsidiaries have material operations;

 

“Corporation Group”
means, collectively the Corporation and Charlotte’s Web, Inc.;

 

    2

     

    

 

“Corporation Group Contracts”
has the meaning given thereto in Section 1(z) of Schedule C;

 

“Designated News Releases”
means a news release designated by the Corporation in respect of previously undisclosed information that, in the Corporation’s determination,
constitutes a material fact (as such term is defined in Securities Laws) and that is identified by the Corporation as a “designated
news release” for the purposes of the Prospectus in writing on the face page of the version of such news release that is filed
by the Corporation on SEDAR;

 

“Designated Representatives”
means, for a Party, the individuals from that Party identified as such in Schedule A hereto (as such Schedule A may be amended from time
to time by any Party by notice to the other Party as provided herein, which amendment shall be effective upon all Parties mutually agreeing
in writing to an amended and restated form of Schedule A);

 

“Directed Selling Efforts”
means “directed selling efforts” as defined in Regulation S under the U.S. Securities Act and, without limiting the
foregoing, but for greater clarity, means, subject to the exclusions from the definition of directed selling efforts contained in Regulation
S under the U.S. Securities Act, any activity undertaken for the purpose of, or that could reasonably be expected to have the effect of,
conditioning the market in the United States for the Offered Shares and includes the placement of any advertisement in a publication with
a general circulation in the United States that refers to the offering of any of the Offered Shares;

 

“Employee Plans”
means any (i) pension, retirement, deferred compensation, savings, profit-sharing, stock option, stock purchase, bonus, incentive,
vacation pay, severance pay, supplemental unemployment benefit, employee assistance, death benefit or other employee or post-retirement
benefit plan, trust, arrangement, contract, agreement, policy or commitment from which present or former employees, officers and directors,
individuals working on contract with the Corporation or individuals providing services to the Corporation of a kind normally performed
by employees benefit or have the potential to benefit, or (ii) group or individual insurance policy or coverage (including self-insured
coverage) for accident and sickness or life insurance (including any individual insurance policy under which any present or former employee,
officer or director of the Corporation is the named insured and as to which the Corporation makes premium payments, whether or not a member
of the Corporation is the owner, beneficiary or both of that policy), or other insured or covered expense reimbursement coverage, from
which present or former employees, officers or directors of the Corporation benefit or have the potential to benefit;

 

“Environmental Laws”
has the meaning given thereto in Section 1(ddd) of Schedule C;

 

“Filing Date” means
the date on which the Prospectus Supplement is first filed with the Qualifying Authorities in accordance with Section 9.1(b);

 

“Financial Statements”
means collectively, the audited annual financial statements and unaudited interim financial statements of the Corporation that are filed
on the Public Record and are included or incorporated (or deemed to be incorporated) by reference in the Prospectus, together with the
notes thereto and, in the case of the audited annual financial statements, the auditor’s report thereon;

 

    3

     

    

 

“General Solicitation”
and “General Advertising” means “general solicitation” and “general advertising”,
respectively, as used in Rule 502(c) of Regulation D under the U.S. Securities Act, including any advertisement, article, notice
or other communications published in any newspaper, magazine or similar media or broadcast over the internet, radio or television, or
any seminar or meeting whose attendees had been invited by general solicitation or general advertising or in any other manner involving
a public offering within the meaning of Section 4(a)(2) of the U.S. Securities Act;

  

“Governmental Body”
means any (i) multinational, federal, provincial, state, municipal, local or other governmental or public authority, body, department,
central bank, court, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) any subdivision or authority
of any of the foregoing, or (iii) any quasi-governmental, self-regulatory organization or private body exercising any regulatory,
expropriation or taxing authority under or for the account of its members or any of the above, and includes the Qualifying Authorities;

 

“Governmental Licenses”
has the meaning given thereto in Section 1(ww) of Schedule C;

 

“IFRS” means International
Financial Reporting Standards;

 

“Indemnified Party”
has the meaning given thereto in Section 1.1 of Schedule F;

 

“Indemnifying Party”
has the meaning given thereto in Section 1.1 of Schedule F;

 

“Initial Acquisition Comfort
Letter” has the meaning given thereto in Section 9.2(c);

 

“Initial Corporation Comfort
Letter” has the meaning given thereto in Section 9.2(b);

 

“Initial Legal Opinions”
has the meaning given thereto in Section 9.2(a);

 

“Intellectual Property”
has the meaning given to it in Section 1(tt) of Schedule C;

 

“knowledge of the Corporation”,
 “of which the Corporation is aware”, “knowledge of the Corporation Group” (or similar phrases) means
the actual knowledge of the Chief Executive Officer, President and Chief Financial Officer in each case after having made due and reasonable
inquiries with respect to such facts or circumstances;

 

“Law” means any and
all applicable laws, including all statutes, codes, ordinances, decrees, rules, regulations, municipal by-laws or judgments, orders, decisions,
rulings or awards of any Governmental Body, binding on or affecting the Person referred to in the context in which the word is used;

 

“Leased Properties”
has the meaning given thereto in Section 1(yy) of Schedule C;

 

“Leases” has the
meaning given thereto in Section 1(yy) of Schedule C;

 

“Legacy Stock Option Plan”
means the stock option plan of the Corporation;

 

“Liens” means, with
respect to any property or assets, any encumbrance or title defect of whatever kind or nature, regardless of form, whether or not registered
or registrable and whether or not consensual or arising by Law, including any mortgage, lien, charge, pledge or security interest, whether
fixed or floating, or any assignment, lease, option, right of pre-emption, privilege, encumbrance, easement, servitude, right of way,
community property right, restriction on transfer, restrictive covenant, right of use or any other right or claim of any kind or nature
whatever which affects ownership or possession of, or title to, any interest in, or the right to use or occupy such property or assets;

 

    4

     

    

 

“LTIP” means the
2018 Long-Term Incentive Plan of the Corporation, as may be amended from time to time;

 

“Marketplace” means
any recognized Canadian “marketplace” as that term is defined in NI 21-101 upon which the Common Shares are listed,
quoted or otherwise traded in a Qualifying Jurisdiction;

 

“Material Adverse Effect”
or “Material Adverse Change” means a material adverse fact, effect, change, event, occurrence, or any development involving
a change that has an effect on (i) the business, affairs, operations, condition (financial or otherwise), earnings, assets, liabilities
(absolute, accrued, contingent or otherwise) or capital of the Corporation and the Subsidiaries, taken as a whole, whether or not arising
in the ordinary course of business, (ii) the transactions contemplated by this Agreement, and (iii) the ability of the Corporation
or the Agents to perform its obligations under this Agreement;

 

“material change”,
 “material fact” and “misrepresentation” with respect to circumstances in which the Securities Laws
of a particular jurisdiction are applicable, as each of such terms is defined under the Securities Laws of that jurisdiction, and if not
so defined, or in circumstances in which the laws of no particular jurisdiction is applicable, as each of such term is defined under the
Act;

 

“Material Subsidiaries”
means each Subsidiary identified in Schedule G as a material Subsidiary of the Corporation (as updated by the Corporation in Exhibit A
to a Placement Notice and an officer’s certificate delivered pursuant to Section 9.3 from time to time where any other Subsidiary
reasonably is considered to be material to the business and operations of the Corporation and its Subsidiaries, taken as a whole, at the
relevant time);

 

“Name and Likeness Agreement”
means the name and likeness license agreement dated August 1, 2018 between Leeland & Sig LLC, CWB Holdings, Inc. and
the Corporation, as amended on April 16, 2021;

 

“Net Proceeds” has
the meaning given thereto in Section 7.2;

 

“NI 21-101” means
National Instrument 21-101 — Marketplace Operation;

 

“NI 44-101” means
National Instrument 44-101 — Short Form Prospectus Distributions;

 

“NI 44-102” means
National Instrument 44-102 — Shelf Distributions;

 

“NI 51-102” means
National Instrument 51-102 — Continuous Disclosure Obligations;

 

“No Trade Period”
has the meaning given thereto in Section 4.7;

 

    5

     

    

 

“NP 11-202” means
National Policy 11-202 — Process for Prospectus Reviews in Multiple Jurisdictions;

 

“Offered Shares”
has the meaning given thereto in the second paragraph on the first page of this Agreement;

 

“Option Agreement”
means the option purchase agreement among the Corporation, Stanley Brothers USA Holdings, Inc. and certain securityholders of Stanley
Brothers USA Holdings, Inc. executed March 2, 2021 and effective February 26, 2021;

 

“OSC” means the Ontario
Securities Commission;

 

“Parties” means the
Corporation and the Agents, and “Party” means any of them;

 

“Passport Procedures”
means the procedures described under Multilateral Instrument 11-102 – Passport System and NP 11-202;

 

“Passport System”
means the system and procedures for the filing of prospectuses and related materials in one or more Canadian jurisdictions pursuant to
Multilateral Instrument 11-102 – Passport System adopted by the Qualifying Authorities (other than the Ontario Securities
Commission) and NP 11-202;

 

“pending” means,
with respect to a Placement Notice for the period beginning on the issuance of the written notice contemplated by Section 4.1 and
ending on the earlier of (i) the issuance of the Placement Notice with respect to the intended or expected sale of Offered Shares
relating to such written notice and (ii) delivery of written notice from the Corporation to the Agents indicating that the Corporation
no longer intends or expects to initiate the sale of such Offered Shares;

 

“Person” includes
an individual, a corporation, a partnership, a trust, a trustee, a joint venture, a syndicate, a sole proprietorship, other bodies corporate,
an unincorporated organization, a union, a regulatory body or any agency thereof, a government or any department or agency thereof and
the heirs, executors, administrators or other legal representatives of an individual;

 

“Personally Identifiable Information”
means any information that alone or in combination with other information held by the Corporation can be used to specifically identify
a person including but not limited to a natural person’s name, street address, telephone number, e-mail address, photograph, social
insurance number, driver’s license number, passport number, credit or debit card number or customer or financial account number
or any similar information that is treated as “Personally Identifiable Information” under any applicable laws;

 

“Placement” means
an issuance and sale of Offered Shares hereunder by the Corporation, acting through the Agents as its agents, pursuant to an ATM Distribution;

 

“Placement Notice”
has the meaning given thereto in Section 4.1;

 

“Placement Shares”
has the meaning given thereto in Section 4.1;

 

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“Placement Time”
means each time at which Placement Shares are sold pursuant to a Placement Notice;

 

“Prospectus” means
the Base Shelf Prospectus as supplemented by the Prospectus Supplement and any Supplementary Material;

 

“Prospectus Supplement”
means the shelf prospectus supplement to be filed in accordance with NI 44-102 in respect of the distribution of the Offered Shares pursuant
to the Shelf Procedures, the Passport Procedures and the provisions of this Agreement, and includes from and after the Filing Date, any
subsequent amendments thereto or amended, re filed or amended and restated forms thereof;

 

“Public Record” means
all information filed by or on behalf of the Corporation with the Qualifying Authorities (including the Base Shelf Prospectus and the
Prospectus Supplement) after January 1, 2019 in compliance, or intended compliance, with any applicable Securities Laws;

 

“Qualifying Authorities”
means, collectively, the securities commissions or similar securities regulatory authorities in the Qualifying Jurisdictions;

 

“Qualifying Jurisdictions”
means all of the provinces and territories of Canada;

 

“Representation Date”
has the meaning given thereto in Section 9.3;

 

“Returns” has the
meaning given thereto in Section 1(eee) of Schedule C;

 

“Sanctions” has the
meaning given thereto in Section 1(ss) of Schedule C;

 

“Securities Laws”
means, collectively, the securities acts or similar statutes of each of the Qualifying Jurisdictions and the respective rules and
regulations under such laws, together with applicable published national, multilateral and local policy statements, instruments, notices
and blanket orders of the Qualifying Jurisdictions, and all rules, by-laws and regulations governing the TSX;

 

“SEDAR” means the
System for Electronic Data Analysis and Retrieval established under National Instrument 13-101 — System for Electronic Document
Analysis and Retrieval;

 

“Settlement Date”
has the meaning given thereto in Section 7.1;

 

“Settlement Procedures”
means those procedures relating to the issuance and delivery of Placement Shares and the payment of the Net Proceeds from the sale of
such Placement Shares on each Settlement Date as mutually agreed to in writing by the Parties from time to time during the term of this
Agreement;

 

“Shelf Procedures”
means the rules and procedures for shelf prospectuses established under NI 44-102;

 

“Subsidiary” means
those entities that would be considered a “subsidiary” of the Corporation pursuant to Securities Laws and includes the Material
Subsidiaries, and “Subsidiaries” means all of them (as updated by the Corporation in Exhibit A to a Placement
Notice and an officer’s certificate delivered pursuant to Section 9.3 from time to time);

 

    7

     

    

 

“Supplementary Material”
means, collectively,(i) any amendment (including both an amendment that does not fully restate the original text and an amendment
and restatement) to the Base Shelf Prospectus, and any documents or information incorporated by reference in, the Base Shelf Prospectus,
and to the extent that such document is deemed to be incorporated by reference in the Base Shelf Prospectus for the purposes of a distribution
of Offered Shares contemplated hereby, and (ii) all supplemental, additional or ancillary material, information, reports, applications,
statements or documents related to the Base Shelf Prospectus or the Prospectus Supplement, including but not limited to all Designated
News Releases which are incorporated by reference in the Prospectus, and which are filed from and after the Filing Date and which relate
to transactions in Offered Shares as contemplated hereunder;

 

“Tax Act” means the
Income Tax Act (Canada), as amended from time to time;

 

“Taxes” means all
taxes (including income tax, capital tax, payroll taxes, employer health tax, workers’ compensation payments, property taxes, custom
and land transfer taxes), duties, royalties, levies, imposts, assessments, deductions, charges or withholdings and all liabilities with
respect thereto including any penalty and interest payable with respect thereto;

 

“Trading Day” means
any day on which securities are purchased and sold on the TSX;

 

“Transfer Agent”
means Odyssey Trust Company or other duly appointed transfer agent for the Common Shares from time to time;

 

“TSX” means the Toronto
Stock Exchange;

 

“U.S. Person” means
a “U.S. person” as defined in rule 902(k) of Regulation S under the U.S. Securities Act; and

 

“U.S. Securities Act”
means the United States Securities Act of 1933, as amended.

 

		1.2	The division of this Agreement into sections, paragraphs and clauses and the provision of headings are
for convenience of reference only and shall not affect the construction or interpretation of this Agreement. Unless something in the subject
matter or context is inconsistent therewith, references herein to sections, paragraphs or clauses are to sections, paragraphs or clauses
of this Agreement.

 

		1.3	Words importing the singular number include the plural and vice versa; words importing gender shall include
all genders.

 

		1.4	References herein to any statute shall extend to and include orders-in-council, regulations or instruments
passed under and pursuant to such statute, any amendment or re-enactment of such statute, orders-in-council, regulations or instruments,
and any statute, orders-in-council, regulations or instruments substantially in replacement thereof. References herein to any statute,
regulation, order-in-council or instrument shall include any amendments thereto from time to time.

 

    8

     

    

 

		1.5	Any reference herein to the Prospectus or to a matter being included or disclosed in the Prospectus shall
be deemed to refer to and include the documents incorporated, or deemed under Securities Laws to be incorporated, by reference in the
Prospectus as of the applicable date.

 

		1.6	Wherever used herein, the word “including”, when following any statement, term or list,
is not to be construed as limiting the statement, term or list to the specific items or matters set forth immediately following such word
or to similar items or matters, and shall be construed as “including, without limitation”.

 

		1.7	The words “hereto”, “herein”, “hereby”, “hereunder”,
 “hereof” and similar expressions mean and refer to this Agreement as a whole and not to any particular section, paragraph
or other part of this Agreement.

 

		1.8	Except as expressly set out in this Agreement, the computation of any period of time referred to in this
Agreement shall exclude the first day and include the last day of such period. If the time limited for the performance or completion of
any matter under this Agreement expires or falls on a day that is not a Business Day, the time so limited shall extend to the next following
Business Day.

 

		1.9	Appended hereto are the following schedules (which are incorporated into this Agreement by reference and
are deemed to be a part hereof):

 

		Schedule A	–	Designated Representatives and Authorized Representatives

 

		Schedule B	–	Form of Placement Notice

 

		Schedule C	–	Representations and Warranties

 

		Schedule D	–	Form of Officer’s Certificate

 

		Schedule E	–	Matters to be Addressed in Legal Opinions

 

		Schedule F	–	Indemnification and Contribution

 

		Schedule G	–	Material Subsidiaries

 

2.            APPOINTMENT
OF AGENTS

 

		2.1	The Corporation hereby appoints the Agents, acting severally and not jointly, to act as its sole and exclusive
agents with respect to the sale of the Offered Shares through the facilities of the TSX or any other Marketplace pursuant to an ATM Distribution
as provided herein, and each Agent hereby accepts, severally and not jointly, such appointment on the terms and conditions contained herein.
Such appointment shall be on an exclusive basis during the term hereof, and the Corporation agrees that, during the term hereof, it will
not appoint any other Person to act as the Corporation’s agent with respect to sales of the Offered Shares through the facilities
of the TSX or any other Marketplace by way of an ATM Distribution. Nothing contained herein shall otherwise prohibit or restrict the Corporation
from issuing securities or raising money in any manner other than through an ATM Distribution.

 

    9

     

    

 

		2.2	The Corporation acknowledges and agrees that the Agents and their affiliates may, to the extent permitted
under Securities Laws and the rules of the TSX and any other applicable Marketplace, purchase and sell securities of the Corporation
for their own account while this Agreement is in effect, provided that: (i) the Corporation shall not be deemed to have authorized
or consented to any such purchase or sale by an Agent or any of its affiliates; (ii) an Agent shall not, and no Person acting jointly
or in concert with such Agent shall, over-allot Offered Shares in connection with the distribution of Offered Shares under an ATM Distribution
or effect any other transactions that are intended to stabilize or maintain the market price of the Offered Shares in connection with
such distribution; and (iii) an Agent and its affiliates shall not purchase and sell Offered Shares for their own account under an
ATM Distribution in a manner which could directly or indirectly result in a sale with lower Net Proceeds to the Corporation than otherwise
available through the TSX or any other Marketplace.

 

		2.3	Each Agent covenants and agrees, severally and not jointly, that it will comply with all Laws (including
Securities Laws) and requirements of the TSX and any other applicable Marketplace applicable to it and necessary to be complied with by
the Agent in connection with the performance of its obligations hereunder. Neither the Agents nor any of their affiliates or any Person
acting on their behalf will engage in any Directed Selling Efforts or in any form of General Solicitation or General Advertising in the
United States with respect to the Offered Shares. Each Agent covenants and agrees, severally and not jointly, that it will not offer to
sell or solicit an offer to buy any of the Offered Shares within the United States or to, or for the account or benefit of, any U.S. Person.
The Corporation and the Agents agree that no “marketing materials” or “standard term sheet” (both within the meaning
of National Instrument 41-101 – General Prospectus Requirements) shall be provided to any purchaser or prospective purchaser
of Offered Shares in connection with a Placement or proposed Placement.

 

		2.4	In consideration for its services hereunder, including the ancillary service of acting as financial advisor
to the Corporation with respect to the terms of any sale of Offered Shares pursuant to an ATM Distribution hereunder, the applicable Agent
shall be entitled to receive, and the Corporation agrees to pay, a fee equal to 2.0% of the gross proceeds from any sales of Offered Shares
made hereunder (the “Agents’ Fee”), with such compensation to be allocated among the Agents as agreed by the
Agents in writing.

 

3.            PERIODIC
OFFERING OF SECURITIES

 

		3.1	Pursuant to the terms and conditions hereof and from time to time during the term hereof, the Corporation
may, acting through the Agents, as agents of the Corporation, issue and sell the Offered Shares through the facilities of the TSX or any
other Marketplace in one or more transactions that constitute ATM Distributions.

 

		3.2	The issuance and sale of the Offered Shares on the TSX or other Marketplace pursuant to ATM Distributions
will be made pursuant to the Prospectus filed with the Qualifying Authorities.

 

		3.3	The Corporation hereby consents to the use by the Agents of copies of the Prospectus in connection with
the offering and sale to the public of the Offered Shares on the TSX or other Marketplace pursuant to ATM Distributions.

 

    10

     

    

 

4.            INITIATING
A PLACEMENT

 

		4.1	The Corporation may, from time to time during the term of this Agreement, deliver to the applicable Agent
one or more notice(s) (a “Placement Notice”) that: (a) requests that the Agent sell up to a specified dollar
amount or a specified number of Offered Shares (the “Placement Shares”) pursuant to the terms and conditions hereof;
and (b) specifies any parameters in accordance with which the Corporation requires that the Placement Shares be sold (such as a minimum
market price per Placement Share, the time period in which sales are to be made and/or specific dates on which the Placement Shares may
not be sold). A Placement Notice shall also contain any updates as contemplated in Section 8.1. A copy of the Placement Notice shall
be provide to the other Agent.

 

		4.2	The form of Placement Notice shall be in the form set out in Schedule B hereto, as may be amended in writing
by the Parties from time to time during the term of this Agreement. From and after such agreement being made, all Placement Notices shall
be delivered in the agreed form until such time as the Parties may agree in writing to an amended or replacement form.

 

		4.3	A Placement Notice shall:

 

		(a)	be signed by an Authorized Representative of the Corporation;

 

		(b)	be addressed and sent by electronic mail (or such other method mutually agreed to in writing by the Parties)
to each Designated Representative of the applicable Agent; and

 

		(c)	be effective upon receipt by the applicable Agent unless and until the earliest of the following occurs:
(i) the Agent advises the Corporation, by electronic mail (or such other method mutually agreed to in writing by the Parties) addressed
and sent to each of the Designated Representatives of the Corporation, that it declines to accept the terms of sale set forth in the Placement
Notice; (ii) the entire amount of the Placement Shares specified therein has been sold and all such sales have settled in accordance
with the terms of sale set forth in the Placement Notice and the terms and conditions hereof; (iii) the Corporation or the Agent
suspends the sale (or further sale, as applicable) of the Placement Shares in accordance with Section 6; (iv) the Agent receives
from the Corporation a subsequent Placement Notice with parameters that expressly supersede those contained in the earlier dated Placement
Notice; or (v) this Agreement has been terminated pursuant to Section 13 hereof.

 

		4.4	On receiving a Placement Notice, an Authorized Representative of the Agent shall promptly acknowledge
receipt thereof (or notify the Corporation that the Agent declines to accept the Placement Notice pursuant to Section 4.3(c)(i))
by signing the Placement Notice and returning a copy thereof to the Corporation by electronic mail (or such other method mutually agreed
to in writing by the Parties) addressed and sent to each of the Designated Representatives of the Corporation. For all purposes hereof,
and notwithstanding any other provision hereof, the Agent shall be deemed not to have received a Placement Notice unless receipt thereof
shall have been so acknowledged by an Authorized Representative of the Agent.

 

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		4.5	The Parties acknowledge and agree that neither the Corporation nor an Agent shall have any obligation
with respect to a Placement or any Placement Shares unless and until the Corporation delivers and the applicable Agent acknowledges receipt
of a Placement Notice pursuant to the terms set forth above, and then only upon the terms specified therein and herein.

 

		4.6	A Placement Notice shall not contain any parameters that conflict with the provisions of this Agreement
or that subject or purport to impose upon or subject an Agent to any obligations in addition to an Agent’s obligations contained
in this Agreement. In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice with respect to
an issuance and sale of Placement Shares, the terms of this Agreement shall prevail.

 

		4.7	The Corporation covenants and agrees that:

 

		(a)	each Placement Notice delivered by or on behalf of the Corporation to an Agent shall be deemed to be an
affirmation that: (i) the representations and warranties made by the Corporation in this Agreement and in any certificates provided
pursuant hereto are true and correct as at the time the Placement Notice is issued and all such representations and warranties shall be
deemed to have been made as at such time, except only to the extent that any such representation and warranty is, by its express terms,
limited to a specific date, or as otherwise updated and expressly disclosed in the Placement Notice; and (ii) the Corporation has
complied with all covenants and agreements to be performed, and satisfied all conditions to be satisfied, by or on the part of the Corporation
hereunder at or prior to the time the Placement Notice is issued; and

 

		(b)	the Corporation shall not, during the time period (the “No Trade Period”) in which
the Corporation has knowledge of a “material change” or “material fact” with respect to the Corporation which
has not been generally disclosed, issue a Placement Notice until such No Trade Period ends either through a change in circumstances or
the filing of a material change report, a Designated News Release or any other Supplementary Material that discloses such “material
change” or “material fact”.

 

At any time while a Placement Notice
is pending or effective (and not currently suspended), the Corporation shall promptly notify the applicable Agent of the commencement
of a No Trade Period and suspend any further sale of Placement Shares under the Placement Notice in accordance with Section 6.1 until
the end of the No Trade Period.

 

		4.8	The Corporation acknowledges and agrees that, in order to allow the Agents to conduct their “due
diligence” investigations with respect to the Corporation as contemplated in Sections 9.1(h) and (i) in a timely and responsible
manner, it will provide the Agents with at least five Business Days (or such lesser number of days as agreed to by the Parties) notice
in writing of any intent or expectation on the part of the Corporation, to deliver a Placement Notice hereunder.

 

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5.            SALE
OF PLACEMENT SHARES BY AGENT

 

		5.1	Subject to the terms and conditions set forth herein, upon the Corporation’s delivery and the applicable
Agent’s acknowledgment of receipt of a Placement Notice, and unless the sale of the Placement Shares described therein has been
declined by the Agent, suspended by the Corporation or the Agent (for as long as such suspension is in place) or otherwise terminated
in accordance with the provisions hereof, the applicable Agent, for the period(s) specified in the Placement Notice (subject to any
No Trade Periods or other date specified in the Placement Notice on which Placement Shares may not be sold), will use its commercially
reasonable efforts, consistent with its normal trading and sales practices, and in compliance with all applicable Laws (including Securities
Laws), all applicable Investment Industry Regulatory Organization of Canada dealer member rules and Universal Market Integrity Rules (including
section 5.1 thereof), and the applicable rules of the TSX and any other applicable Marketplace, and upon the terms and conditions
set forth in this Agreement and the Prospectus applicable to the applicable Agent, to sell such Placement Shares up to the amount specified
and otherwise in accordance with parameters set forth in the Placement Notice.

 

		5.2	It is understood and agreed that the Agents shall act, severally and not jointly, as agents of the Corporation
with respect to the sale of Offered Shares in accordance with the terms and conditions hereof, and each Agent is and will be under no
obligation to purchase any such Offered Shares that may be offered for sale by the Corporation hereunder.

 

		5.3	After consultation with the Corporation and subject to the terms of a Placement Notice, an Agent may sell
the Placement Shares specified in the Placement Notice through the facilities of the TSX or any other Marketplace by any method permitted
by law and constituting an ATM Distribution, including sales made directly on the TSX through a dealer that is a registered member or
participating organization of the TSX and sales made on any other Marketplace through a Marketplace participant.

 

		5.4	The applicable Agent will send by electronic mail (or such other method mutually agreed to in writing
by the Parties) to the Designated Representatives of the Corporation, not later than 12:00 noon (Toronto time) on the Trading Day immediately
following the Trading Day on which any sales of Placement Shares have been made hereunder, confirmation of the following information:

 

		(a)	the number of Placement Shares sold on such day;

 

		(b)	the average price at which the Placement Shares were sold on such day;

 

		(c)	the aggregate gross proceeds from the sales of Placement Shares on such day;

 

		(d)	the total Agents’ Fee payable in respect of such sales; and

 

		(e)	the Net Proceeds payable to the Corporation.

 

		5.5	The Agents will deliver to the Corporation, for each fiscal quarter of the Corporation during which Offered
Shares are sold through the Agents or distributed pursuant to this Agreement, and otherwise as reasonably requested by the Corporation
to enable the Corporation to meet its quarterly reporting requirements under Securities Laws or any applicable requirements of the TSX
or any other Marketplace, within three Business Days (or such lesser number of days as agreed to by the Parties) after the end of the
fiscal quarter, a report stating the number of Offered Shares distributed pursuant to this Agreement during such fiscal quarter on the
TSX or such other Marketplace together with such information as specified in Section 5.4 calculated on an aggregate quarterly basis.
Unless Securities Laws, the applicable requirements of the TSX or such other Marketplace otherwise require, the Parties agree that the
Agents’ report referred to in this Section 5.5 shall state the aggregate number of Offered Shares issued on all Settlement
Dates occurring during the fiscal quarter together with such information as specified in Section 5.4 on an aggregate quarterly basis.

 

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		5.6	For the avoidance of doubt, the obligations of the Agents under this Agreement shall be several and not
joint.

 

6.            SUSPENSION
OF SALES

 

		6.1	At any time while a Placement Notice is pending or effective (and not suspended), the Corporation or the
applicable Agent may, and, upon commencement of a No Trade Period, the Corporation shall, by written notice to the other Party addressed
and sent by electronic mail (or such other method mutually agreed to in writing by the Parties) to its Designated Representatives, temporarily
or indefinitely suspend any sale or further sale of Placement Shares under a Placement Notice, which notice shall be effective immediately,
unless otherwise specified in the notice; provided, however, that any such suspension shall not affect any Party’s obligations with
respect to any Placement Shares sold hereunder prior to the receipt of such notice. Any such notice shall set out the duration of such
suspension or provide that such suspension is indefinite until further notice is provided by such Party. For greater certainty, in the
event that the applicable Agent is informed by the Corporation of the occurrence of one or more of the events described in Section 9.1(d),
the applicable Agent shall have the right to immediately suspend the sale of any Placement Shares. For greater certainty, a Placement
Notice may specify a period or periods during which Placement Shares may not be sold, and in such case, the sale of Placement Shares under
such Placement Notice shall be suspended during any such periods identified, and the Placement Notice itself shall constitute notice of
the suspension(s) as contemplated above.

 

		6.2	Without limiting the generality of the foregoing, any sale of Placement Shares made but not yet settled
before a notice of suspension is given pursuant to Section 6.1 shall be settled in accordance with the provisions of Section 7,
and the obligations of the Parties with respect to settling any such sale shall not be affected by the suspension.

 

		6.3	Any notice of suspension provided pursuant to Section 6.1, including the reason for such notice of
suspension, will be kept strictly confidential by the Agent and its affiliates and any Person acting on its behalf, unless: (i) such
information is or becomes generally available to the public other than as a result of a disclosure by the Agent in violation of this Agreement;
(ii) the disclosure of such information is expressly permitted, in writing, by the Corporation; or (iii) the disclosure of such
information is required by applicable Securities Laws to which the Agent is subject or by order of a Governmental Body and pursuant to
which the Agent is required to disclose such information.

 

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7.            SETTLEMENT
AND DELIVERY OF PLACEMENT SHARES

 

		7.1	Settlement for any sale of Placement Shares on the TSX or any other Marketplace shall occur on the second
Trading Day (or such earlier day as is then current industry practice for regular-way trading) following the date on which the sale is
made (each such Trading Day being a “Settlement Date”).

 

		7.2	The amount of proceeds to be delivered to the Corporation on a Settlement Date (the “Net Proceeds”),
payable against receipt by the applicable Agent of the Placement Shares sold as provided herein, shall be equal to the aggregate sales
price received by the applicable Agent at which such Placement Shares were sold, less the Agents’ Fee payable by the Corporation
in respect of such sales.

 

		7.3	On each Settlement Date, the Corporation will issue and deliver (or cause to be issued and delivered)
to the applicable Agent the Placement Shares sold by the Agent against delivery by the Agent to the Corporation of the Net Proceeds from
the sale of such Placement Shares, all in accordance with the Settlement Procedures.

 

		7.4	If the Corporation defaults in its obligation to issue and deliver the Placement Shares on a Settlement
Date, the Corporation agrees that:

 

		(a)	in the event the Agent has delivered to the Corporation the Net Proceeds from the sales of the Placement
Shares on the applicable Settlement Date in accordance with the Settlement Procedures prior to the occurrence of such default, the Corporation
will immediately return the full amount of such Net Proceeds to the Agent; and

 

		(b)	in the event that the Net Proceeds from sales of the Placement Shares are returned to the Agent pursuant
to Section 7.4(a), provided that the Agent has delivered the Placement Shares to purchasers thereof on the applicable Settlement
Date by way of an alternative settlement method, the Corporation will use its commercially reasonable efforts to issue and deliver (or
cause to be issued and delivered) to the Agent an equivalent number of Offered Shares equal to the Placement Shares promptly in accordance
with the Settlement Procedures, and the Agent will promptly thereafter deliver to the Corporation the amount of the Net Proceeds from
such sales less the amount of any costs directly incurred by the Agent arising out of or in connection with the late delivery of such
Placement Shares (including, reasonable legal fees and expenses and any commission, discount or other compensation to which it would otherwise
be entitled absent such default), together with reasonable particulars of any such costs, or, at the election of the Agent, such costs
may be separately invoiced to the Corporation.

 

		7.5	Each of the Agents covenants and agrees, severally and not jointly, to copy or otherwise include the Corporation
on all correspondence between the Agent and the Transfer Agent, in connection with or arising from or relating to the settlement (electronic
or otherwise) of any sale of Placement Shares hereunder, and further, shall be responsible for taking all actions required to be taken
by it within the applicable time periods to ensure that all sales of Placement Shares hereunder are settled without default in accordance
with existing industry practice for regular-way trading.

 

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		8.	REPRESENTATIONS AND WARRANTIES OF THE CORPORATION

 

		8.1	The Corporation represents and warrants to, and covenants and agrees with, the Agents that each of the
matters set forth in Schedule C are true and correct and shall be true and correct (except only to the extent that any such representation
is, by its express terms, limited to a specific date or, with respect to any such representation made or deemed to be made after the date
hereof, as otherwise updated and expressly disclosed in a Placement Notice) as of: (a) the date of this Agreement; (b) the Filing
Date; (c) each Representation Date on which a Bringdown Certificate is required to be delivered pursuant to Section 9.3; (d) each
time a Placement Notice is delivered to an Agent or a suspended Placement Notice ceases to be suspended; (e) each Placement Time;
and (f) each Settlement Date, and acknowledges that the Agents are relying upon these representations and warranties in connection
with entering into this Agreement and performing its obligations hereunder.

 

		8.2	Notwithstanding any other provision hereof, the Corporation acknowledges and agrees that all of its representations
and warranties contained herein or in certificates delivered pursuant hereto shall survive, as of their respective dates, regardless of,
and without mitigation, diminishment or restriction because of: (a) any investigation made by or on behalf of the Agents, the Agents’
counsel or any directors, officers, employees, control persons, representatives or advisors of the Agents, (b) delivery and acceptance
of the Placement Shares and payment therefor; or (c) any termination of this Agreement.

 

		9.	COVENANTS OF THE CORPORATION

 

		9.1	General. The Corporation covenants and agrees with the Agents that the Corporation will:

 

		(a)	prepare, and allow the Agents to participate in the preparation and approve the form of, the Prospectus
Supplement and all other documentation required to be filed, delivered or disseminated under Securities Laws for any Placement of the
Offered Shares;

 

		(b)	file the Prospectus Supplement with the Qualifying Authorities in accordance with the Shelf Procedures
and the Passport Procedures on or before the third Business Day following execution and delivery of this Agreement;

 

		(c)	fulfill all legal and regulatory requirements (including pursuant to NI 44-102) to be fulfilled by the
Corporation necessary to enable the Offered Shares to be offered for sale and distributed to the public through the facilities of the
TSX or any other Marketplace pursuant to ATM Distributions through a dealer duly registered under Securities Laws, such that the Offered
Shares so distributed will not be subject to any restrictions on resale pursuant to Securities Laws (except where such restrictions apply
because the holder is a “control person” within the meaning of Securities Laws or is restricted from trading Common Shares
by virtue of having knowledge of material undisclosed information concerning the Corporation); provided, however, that if the fulfillment
of any such requirements would (or would reasonably be expected to) result in the Agents becoming subject to additional responsibilities
or liabilities, then the Corporation shall first consult with the Agents as to the particulars of its proposed conduct or course of action
(it being acknowledged and agreed, however, that for greater certainty, except as otherwise provided herein the Corporation shall have
no obligation to confer with the Agents as to the content of documents prepared and filed or disseminated pursuant to its ongoing continuous
disclosure requirements under Securities Laws which includes those types of documents incorporated by reference in the Base Shelf Prospectus
or Prospectus Supplement);

 

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		(d)	throughout any period during which a Placement Notice is pending or effective (and not suspended) and,
if there is a period during which no Placement Notice is pending or effective or during which a Placement Notice is suspended, prior to
the delivery of a new Placement Notice or a suspended Placement Notice ceasing to be suspended, promptly notify the Agents, in writing,
with full particulars, of:

 

		(i)	any change (actual, contemplated or threatened) in the business, affairs, operations, assets, liabilities
(contingent or otherwise) or capital of the Corporation and its Subsidiaries, taken as a whole;

 

		(ii)	any change in any fact covered by a statement (other than a statement furnished by or relating solely
to an Agent) contained or referred to in the Prospectus (as the same exists at the time); or

 

		(iii)	any material fact or any event, matter or circumstance which has been discovered but has not been disclosed
in the Prospectus;

 

which is, or would reasonably be expected
to be, of such a nature as to render the Prospectus (as the same exists at the time) misleading or untrue in any material respect or which
would result in the Prospectus (as the same exists at the time) containing a misrepresentation (including, for greater certainty, an omission
to state a material fact that is required to be stated, or that is necessary to be stated in order for an included statement not to be
misleading) or which would result in the Prospectus (as the same exists at the time) not complying with any of the laws, regulations or
policy statements of any Qualifying Authority or which would reasonably be expected to have a significant effect on the market price or
value of the Common Shares. In addition, during such period, the Corporation shall in good faith discuss with the Agents and their counsel
any change in circumstances (actual or anticipated) relating to the business, affairs, operations, assets, liabilities (contingent or
otherwise) or capital of the Corporation or its Subsidiaries, if any, which is of such a nature that there is reasonable doubt as to whether
any notice need to be given to the Agent pursuant to this Section 9.1(d) and, in any event, prior to filing any Supplementary
Material;

 

		(e)	if there is a change or occurrence of a nature referred to in any of clauses
(i) through (iii) of Section 9.1(d) or if it is otherwise necessary for any other reason to amend or supplement the
Prospectus in order to comply with Securities Laws, promptly prepare and, subject to Section 9.1(f), file with the Qualifying
Authorities such Supplementary Material as may be necessary to remedy the deficiency, occasioned by the change or occurrence or to otherwise
comply with Securities Laws;

 

    17 

     

    

 

		(f)	throughout any period during which a Placement Notice is pending or effective (and not suspended):

 

		(i)	give the Agents notice of its intention to file or prepare any Supplementary
Material;

 

		(ii)	furnish the Agents with a copy of the Supplementary Material within a reasonable amount of time prior
to the proposed filing of same;

 

		(iii)	unless the Supplementary Material is required to be filed pursuant to the Corporation’s continuous
disclosure requirements under Securities Laws (which includes those types of documents incorporated by reference or deemed to be incorporated
by reference in the Base Shelf Prospectus or Prospectus Supplement), not file or use any Supplementary Material to which the Agents or
counsel to the Agents reasonably objects; and

 

		(iv)	promptly advise the Agents of the filing of (and, if applicable, granting of a receipt for) the Supplementary
Material, and furnish the Agents with true and complete copies thereof;

 

		(g)	promptly furnish to the Agents copies of any statements, reports, circulars
or other records or communications (including any such materials that constitute Supplementary Material) of a material nature that the
Corporation sends to its securityholders or may from time to time publish or publicly disseminate, if same are not available to the public
on the SEDAR website at www.sedar.com;

 

		(h)	allow the Agents and their representatives to conduct all “due diligence” inquiries and investigations
that the Agents may reasonably require, and to obtain satisfactory responses and results therefrom, in order for the Agents to fulfill
their obligations as an “underwriter” within the meaning of Securities Laws and to enable the Agents to responsibly sign any
certificate required to be signed by the Agents in the Prospectus Supplement;

 

		(i)	without limiting the generality of Section 9.1(h) or the scope of the inquiries and investigations
that the Agents may conduct for the purposes set forth therein, prior to the Filing Date and during each successive notice period referred
to in Section 4.8 in connection with the proposed delivery of a Placement Notice and each time the Corporation is required to deliver
a Bringdown Certificate pursuant to Section 9.3, the Corporation shall:

 

		(i)	provide or arrange for reasonable access by the Agents and their representatives to the management personnel,
properties and records of the Corporation (including its Subsidiaries) for the purposes of viewing, interviewing or reviewing the same;
and

 

		(ii)	make available such of its senior officers as the Agents may reasonably request, and use its commercially
reasonable efforts to make available representatives of the Auditors, and the auditors of any Acquired Business Financial Statements included
or incorporated by reference in the Prospectus, to answer any questions the Agents may have and to participate in one or more due diligence
sessions;

 

		(j)	comply with all Securities Laws so as to permit Placements as contemplated in this Agreement and the Prospectus
Supplement;

 

    18 

     

    

 

		(k)	throughout any period during which a Placement Notice is pending or effective, not take, directly or indirectly,
any action designed to cause or result in, or that has constituted or might reasonably be expected to constitute, the stabilization, maintenance
or manipulation of the price of the Common Shares;

 

		(l)	file or deliver, within the time limits prescribed by and otherwise in accordance with Securities Laws,
all statements, reports, circulars or other records required to be filed or delivered by the Corporation with or to any of the Qualifying
Authorities pursuant to Securities Laws;

 

		(m)	throughout any period during which a Placement Notice is pending or effective (and not suspended) and
prior to the delivery of a new Placement Notice or a suspended Placement Notice ceasing to be suspended, promptly inform the Agents of:

 

		(i)	any request by a Qualifying Authority or any other Governmental Body for any Supplementary Material or
any revision to any record forming part of the Public Record or for any additional information concerning this Agreement or the transactions
contemplated hereby;

 

		(ii)	the issuance by any Qualifying Authority or other Governmental Body of any order, ruling or direction
to cease, suspend or otherwise restrict the trading of the Common Shares or any other securities of the Corporation, or preventing, suspending
or otherwise restricting the use of the Prospectus or any other prospectus or qualifying document relating to the distribution of the
Offered Shares, or suspending the qualification of such Offered Shares for offering, distribution or resale in any jurisdiction, or of
the initiation or, to the knowledge of the Corporation, threat of any proceeding for any such purpose; and

 

		(iii)	the receipt of any communication from any Qualifying Authority or other Governmental Body relating to
the Prospectus, the Public Record or the distribution of the Offered Shares;

 

		(n)	in the event of the issuance of any order, ruling or direction contemplated in Section 9.1(m), promptly
use its commercially reasonable efforts to obtain the termination or withdrawal of such order, ruling or direction;

 

		(o)	not purchase Common Shares, and not permit any of its affiliates or any Person acting on its behalf to
purchase Common Shares, under a normal course issuer bid throughout (i) any period during which a Placement Notice is pending or
effective, and (ii) during the period beginning on the second Business Day immediately prior to the date on which any Placement Notice
is delivered to the Agent hereunder and ending on the second Business Day immediately following the final Settlement Date with respect
to the Offered Shares sold pursuant to such Placement Notice, without having first agreed with the Agent, acting reasonably, as to the
appropriate adjustments, if any, to be made to the parameters set forth in such Placement Notice;

 

		(p)	apply the Net Proceeds from the sale of the Offered Shares as set forth in the Prospectus under the heading
 “Use of Proceeds”;

 

    19 

     

    

 

		(q)	comply with the terms and conditions of its listing agreement with the TSX and any other applicable Marketplace
upon which the Common Shares are listed and maintain the listing of the Common Shares in good standing on the TSX and each such other
Marketplace or Marketplaces upon which the Common Shares are listed;

 

		(r)	maintain a transfer agent for the Common Shares in accordance with the rules of the TSX and any other
Marketplace (if applicable);

 

		(s)	maintain its status as a reporting issuer in each of the Qualifying Jurisdictions not in default of the
securities legislation, in any material respect, of such Qualifying Jurisdictions;

 

		(t)	comply with OSC Rule 48-501 – Trading During Distributions, Formal Bids and Share Exchange
Transactions;

 

		(u)	not engage in, and not permit any of its affiliates or any Person acting on its behalf engage in any Directed
Selling Efforts or in any form of General Solicitation or General Advertising in the United States with respect to the Offered Shares;
and

 

		(v)	use its commercially reasonable efforts to ensure that the terms of any underwriting agreement, agency
agreement or similar agreement relating to the distribution or sale of the securities of the Corporation that is executed after the date
of this Agreement does not limit or restrict the Corporation’s ability to issue or sell Offered Shares in accordance with the terms
of this Agreement.

 

		9.2	Initial Opinions and Comfort Letters. The Corporation shall deliver, or cause to be delivered,
to the Agents, on the Filing Date, the following documents:

 

		(a)	written opinions, addressed and in form and substance satisfactory to the Agents and the Agents’
counsel, from:

 

		(i)	the Corporation’s Counsel in Canada, DLA Piper (Canada) LLP, and from local counsel (only in respect
of matters governed by the laws of the Qualifying Jurisdictions where DLA Piper (Canada) LLP is not qualified to practice law, determined
by the Corporation and acceptable to the Agents, acting reasonably) concerning the matters set forth in Schedule E and as to such legal
matters, including compliance with Securities Laws in any way connected with the issuance, sale and delivery of the Offered Shares, as
the Agents may reasonably request; and

 

		(ii)	the Corporation’s regulatory counsel with respect to the legal status of hemp-derived products manufactured
by the Corporation,

 

it being understood that in rendering
such opinions Corporation’s Counsel may rely on, as to relevant matters of fact, certificates of officers of the Corporation, public
officials and agencies, and the Transfer Agent (together, the “Initial Legal Opinions”);

 

    20 

     

    

 

		(b)	a “long form comfort letter” from each of the Auditors (the
 “Initial Corporation Comfort Letters”), having a cut-off date of not more than two (2) Business Days prior
to the Filing Date, in form and substance satisfactory to the Agents and the Agents’ counsel, acting reasonably:

 

		(i)	confirming that at all material times they were independent of the Corporation
within the meaning of Securities Laws; and

 

		(ii)	expressing, as of such date, the conclusions and findings of such Auditors
with respect to the financial information and other matters ordinarily covered by accountants’ “comfort letters”
to underwriters in connection with public offerings to the effect that such Auditors have carried out certain procedures performed for
the purposes of comparing certain specified financial information and percentages appearing in the Prospectus (including, for greater
certainty, the documents incorporated by reference therein) with indicated amounts in the financial statements or accounting records of
the Corporation, and have found such information and percentages to be in agreement;

 

		(c)	if Acquired Business Financial Statements are included or incorporated by reference in the Prospectus,
a “comfort letter” from the auditors of the Acquired Business Financial Statements (the “Initial Acquisition Comfort
Letter”) having a cut-off date of not more than two (2) Business Days prior to the Filing Date, in form and substance satisfactory
to the Agent and the Agents’ counsel, acting reasonably:

 

		(i)	confirming that at all material times they were independent of the Acquired Business within the meaning
of Securities Laws;

 

		(ii)	expressing, as of such date, the conclusions and findings of such auditors with respect to the financial
information and other matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection with
public offerings to the effect that such auditors have carried out certain procedures performed for the purposes of comparing certain
specified financial information and percentages appearing in the Prospectus (including, for greater certainty, the documents incorporated
by reference therein) with indicated amounts in the financial statements or accounting records of the Acquired Business, and have found
such information and percentages to be in agreement;

 

		(d)	a certificate signed by two senior officers of the Corporation addressed to the Agents and Agents’
counsel and dated the Filing Date, in form and substance satisfactory to the Agents and the Agents’ counsel, acting reasonably,
certifying the following:

 

		(i)	the articles, by-laws and other constating documents of the Corporation and Charlotte’s Web, Inc.;

 

		(ii)	all resolutions of the Corporation’s directors relating to the ATM Distribution and the transactions
and agreements contemplated herein; and

 

		(iii)	the incumbency and specimen signatures of the Corporation’s
signing officers,

 

    21 

     

    

 

and attaching thereto certificates of
status and/or compliance (or equivalent) for the jurisdiction in which the Corporation, Charlotte’s Web, Inc., and any other
Material Subsidiary is in existence, each dated as close to the Filing Date as is reasonable;

 

		(e)	copies of correspondence indicating that the Corporation has obtained all necessary approvals for the
issuance of the Offered Shares to be listed and posted for trading on the TSX;

 

		(f)	a “reporting issuer” list indicating that the Corporation is a reporting issuer in each of
the Qualifying Jurisdictions, is not in default in any material respect of any requirement under Securities Laws and is not on the list
of defaulting issuers maintained by the Qualifying Authorities; and

 

		(g)	a certificate from the Transfer Agent signed by an authorized officer confirming the issued and outstanding
share capital of the Corporation.

 

		9.3	Bringdown Certificates. Without limiting Section 4.7,
during the term of this Agreement,

 

		(a)	each time the Corporation files:

 

		(i)	an amendment (including an amendment that does not fully restate the original text and an amendment and
restatement) to the Base Shelf Prospectus;

 

		(ii)	a Business Acquisition Report or any other Acquired Business Financial Statements;

 

		(iii)	an annual information form, audited annual financial statements or annual management’s discussion
and analysis (or, in any case, any amendment thereto or an amended, re-filed or amended and restated form thereof); or

 

		(iv)	interim financial statements or interim management’s discussion and analysis (or, in either case,
any amendment thereto or an amended, re-filed or amended and restated form thereof); or

 

		(b)	if reasonably requested by the Agents following the filing of a material change report, Designated News
Release or other document incorporated or deemed to be incorporated by reference into the Prospectus,

 

(each date of filing of one or more
of the documents referred to in paragraph (a) above and any time of a request pursuant to paragraph (b) above being a “Representation
Date”), the Corporation shall deliver to the Agents a certificate, in the form attached hereto as Schedule D (a “Bringdown
Certificate”); provided, however, that the requirement to provide a certificate under this Section 9.3 shall be deemed
to be waived for any Representation Date occurring at a time at which no Placement Notice is pending or effective (including where a Placement
Notice is suspended), which waiver shall continue until the earlier to occur of the date the Corporation delivers a Placement Notice hereunder
or the suspension of a Placement Notice ceases (which for such calendar quarter shall be considered to be a Representation Date) and the
next occurring Representation Date.

 

    22 

     

    

 

		9.4	Further Legal Opinions.

 

		(a)	Within three (3) Trading Days after each Representation Date with respect to which the Corporation
is obligated to deliver a Bringdown Certificate and for which no waiver is applicable pursuant to Section 9.3, the Corporation shall
cause to be delivered to the Agents opinions similar to the Initial Legal Opinions dated as of the Representation Date from the Corporation’s
Counsel in Canada (or such other counsel, including local counsel as to matters involving the application of laws of jurisdictions other
than those jurisdictions for which Corporation’s Counsel in Canada is qualified to practice law, determined by the Corporation and
acceptable to the Agents, acting reasonably) concerning the matters set forth in Schedule E (provided, however, that the Corporation’s
Counsel in Canada shall not be required to provide further legal opinions with respect to the matters described in paragraphs 5 to 17
of the form of opinion prescribed therein).

 

		(b)	Within three (3) Trading Days after each Representation Date with respect to which the Corporation
is obligated to deliver a Bringdown Certificate and for which no waiver is applicable pursuant to Section 9.3, and following an event
or circumstance that results in the legal status of hemp-derived products manufactured by the Corporation changing in a material respect,
the Corporation shall cause to be delivered to the Agents opinions similar to the Initial Legal Opinions, dated as of the Representation
Date (or other applicable date), from the Corporation’s regulatory counsel concerning the legal status of hemp-derived products
manufactured by the Corporation.

 

		9.5	Further Comfort Letters. Within three (3) Trading Days after each Representation Date with
respect to which the Corporation is obligated to deliver a Bringdown Certificate and for which no waiver is applicable pursuant to Section 9.3,
the Corporation shall cause to be delivered to the Agents a “long form comfort letter” dated as of the Representation Date
from each of the Auditors and, if applicable, a “long form comfort letter” from the auditors of each Acquired Business Financial
Statements which are included or incorporated by reference in the Prospectus as at the Representation Date, having a cut-off date of not
more than two (2) Business Days prior to such date, in form and substance satisfactory to the Agents and the Agents’ counsel,
acting reasonably:

 

		(a)	confirming that at all material times they were independent of the Corporation or the Acquired Business,
as applicable, within the meaning of Securities Laws; and

 

		(b)	with respect to financial information concerning:

 

		(i)	the Corporation, other than in respect of Acquired Business Financial Statements, updating the Initial
Corporation Comfort Letters with any information that would have been included in the Initial Corporation Comfort Letters had such initial
letter been given as of such Representation Date and modified as necessary to contemplate any Supplementary Material (other than any Supplementary
Material superseded by a subsequently filed document);

 

		(ii)	an Acquired Business for which an Initial Acquisition Comfort Letter was previously delivered hereunder,
updating the Initial Acquisition Comfort Letter with any information that would have been included in the Initial Acquisition Comfort
Letter had such initial letter been given as of such Representation Date and modified as necessary to contemplate any Supplementary Material;
and

 

    23 

     

    

 

		(iii)	an Acquired Business for which an Initial Acquisition Comfort Letter was not previously delivered hereunder,
expressing, as of such Representation Date, the conclusions and findings of such audit firm with respect to the financial information
and other matters ordinarily covered by accountants’ “comfort letters” to underwriters in connection with public offerings
to the effect that such auditors have carried out certain procedures performed for the purposes of comparing certain specified financial
information and percentages appearing in the Prospectus (including, for greater certainty, the documents incorporated by reference therein)
with indicated amounts in the financial statements or accounting records of the Acquired Business, and have found such information and
percentages to be in agreement.

 

		9.6	Further Officer’s Certificates. Within three (3) Trading Days after each Representation
Date with respect to which the Corporation is obligated to deliver a Bringdown Certificate and for which no waiver is applicable pursuant
to Section 9.3, the Corporation shall cause to be delivered to the Agents a certificate signed by to senior officers of the Corporation
addressed to the Agents and dated the Representation Date, in form and substance satisfactory to the Agents and the Agents’ counsel,
acting reasonably, certifying and attaching thereto certificates of status and/or compliance (or equivalent) for the jurisdiction in which
the Corporation, Charlotte’s Web, Inc., and any other Material Subsidiary is in existence, each dated as close to the Representation
Date as is reasonable.

 

		9.7	Time of Further Deliveries. Notwithstanding Sections 9.3, 9.4, 9.5 and 9.6, if the Corporation
decides to complete a Placement following a Representation Date in respect of which the waiver provided in Section 9.3 applied, then,
prior to or concurrently with delivering the Placement Notice to the Agents or an existing Placement Notice ceasing to be suspended, the
Corporation shall deliver or cause to be delivered to the Agents, as applicable, the Bringdown Certificate contemplated in Section 9.3,
the legal opinions contemplated in Section 9.4, any “comfort letters” as contemplated in Section 9.5 and the officer’s
certificate contemplated in Section 9.6, in each case dated as of the date of the Placement Notice or the date the existing Placement
Notice ceases to be suspended and otherwise substituting the date of the Placement Notice or the date the existing Placement Notice ceases
to be suspended for the “Representation Date” as that term is used in Section 9.3.

 

		10.	EXPENSES

 

		10.1	The Corporation agrees, whether or not the transactions contemplated hereunder are consummated or this
Agreement is terminated in accordance with Section 13, to pay and be responsible for all expenses of or incidental to the performance
of its obligations hereunder, including, but not limited to, expenses relating to:

 

		(a)	the preparation, printing, filing and delivery of the Prospectus (including any Supplementary Material),
including any filing fees payable to Qualifying Authorities or any other Governmental Bodies;

 

		(b)	the preparation, issuance and delivery of the Offered Shares;

 

    24 

     

    

 

		(c)	the printing and delivery of any documents required hereunder to be delivered to or as directed by the
Agents;

 

		(d)	the fees, disbursements and expenses of counsel to the Corporation and of the Corporation’s registrar
and transfer agent, the Auditors (and any auditors of any Acquired Business Financial Statements) and other advisors;

 

		(e)	the reasonable fees (not to exceed (i) $75,000 to and including the
date of this Agreement, and (ii) $25,000 in any 12-month period thereafter during the term of this Agreement), disbursements
and related taxes of counsel to the Agents, and all other reasonable out-of-pocket expenses of the Agents in relation to the Agreement
and ongoing services in connection with the matters and transactions contemplated by the Agreement; and

 

		(f)	the fees and expenses incurred in connection with the listing of the Offered
Shares for trading on the TSX and any other Marketplace on which the Common Shares are listed or quoted.

 

		11.	CONDITIONS TO AGENTS’ OBLIGATIONS

 

		11.1	The obligations of the Agents hereunder with respect to any sale of Placement Shares (other than the obligations
in Section 2.3) shall be subject to the completion by the Agents of ongoing due diligence reviews satisfactory to the Agents in its
sole and reasonable judgment, and to the continuing satisfaction (or waiver by the Agents, in its sole and unfettered discretion) of the
following additional conditions:

 

		(a)	the Prospectus Supplement shall have been filed with the Qualifying Authorities under the Shelf Procedures
and the Passport Procedures in accordance with Section 9.1(b) hereof and all requests for additional information on the part
of the Qualifying Authorities shall have been complied with to the satisfaction of the Agents and the Agents’ counsel, acting reasonably;

 

		(b)	no Supplementary Material (other than documents incorporated by reference and required to be filed pursuant
to NI 51-102) shall have been filed to which the Agents, acting reasonably, object;

 

		(c)	at the Placement Time and at the Settlement Date for such Placement Shares, no order, ruling or direction
of any Qualifying Authority or other Governmental Body shall have been issued that has the effect of:

 

		(i)	ceasing, suspending or otherwise restricting the trading of such Placement Shares or any other securities
of the Corporation,

 

		(ii)	preventing, suspending or otherwise restricting the use of the Prospectus or any other prospectus or qualifying
document relating to the distribution of such Placement Shares, or

 

		(iii)	suspending the qualification of such Placement Shares for offering, distribution or resale in any jurisdiction,
and no proceedings for any such purpose shall have been initiated, announced or threatened;

 

    25 

     

    

 

		(d)	all representations and warranties of the Corporation contained herein and in any certificates delivered
pursuant hereto shall be true and correct, with the same force and effect as if then made, except to the extent that any such representation
and warranty is limited to a specified date (or is updated as permitted by Section 4.7 or 9.3);

 

		(e)	the Corporation shall have complied with all agreements and all conditions on its part theretofore to
be performed or satisfied hereunder;

 

		(f)	the Agents shall have received all documents required to be delivered or furnished to the Agents pursuant
to Section 9.2, in each case on or before the date on which delivery of such document is required pursuant to this Agreement;

 

		(g)	the Placement Shares shall have been conditionally approved for listing on the TSX, subject only to fulfilling
customary conditions with the TSX; and

 

		(h)	the Corporation shall have delivered or caused to be delivered to the Agent and the Agents’ counsel
such other certificates or other documents as they may reasonably request for the purpose of enabling them to pass upon the issuance and
sale of the Placement Shares as herein contemplated, or in order to evidence or confirm: (i) the accuracy of any of the representations
or warranties contained herein; (ii) the fulfillment of any of the conditions contained herein; or (iii) the accuracy and completeness
of any information contained in the Prospectus.

 

		12.	INDEMNIFICATION AND CONTRIBUTION

 

		12.1	The Parties acknowledge the provisions concerning indemnification and contribution set forth in Schedule
F, which forms an integral part of this Agreement, and agree to the matters set forth therein.

 

		13.	TERMINATION

 

		13.1	Each Agent may terminate this Agreement with respect to itself, but not with respect to the other Agent,
in its sole discretion, prior to the automatic termination of this Agreement pursuant to Section 13.4, upon one Trading Day’s
notice to the Corporation as provided in Section 14.1.

 

		13.2	The Corporation may terminate this Agreement in its sole discretion, prior to the automatic termination
of this Agreement pursuant to Section 13.4, upon one Trading Day’s notice to the Agents as provided in Section 14.1; provided
that, if the Corporation terminates this Agreement after the Agents confirm to the Corporation any sale of Placement Shares, the Corporation
shall remain obligated to comply with the provisions of Section 7 with respect to such Placement Shares.

 

		13.3	Any termination pursuant to Section 13.1 shall be without liability of any Party to any other Party,
provided that no termination of this Agreement shall relieve any Party from liability for any breach by it of this Agreement that has
occurred prior to the date of termination.

 

    26 

     

    

 

		13.4	Unless earlier terminated pursuant to Section 13.1, this Agreement shall automatically terminate
upon the earlier of the date on which:

 

		(a)	the issuance and sale of all of the Offered Shares through the Agents on the terms and conditions set
forth herein is completed; and

 

		(b)	the receipt issued for the Base Shelf Prospectus ceases to be effective in accordance with Securities
Laws.

 

		13.5	Notwithstanding any other provision hereof, but subject to the express provisions with respect to survival
in such sections, the provisions of Section 8, Section 10, Section 12, Section 16, Section 19 and Section 20
shall remain in full force and effect notwithstanding termination of this Agreement, and any mutual agreement to terminate shall be deemed
to so provide.

 

		14.	NOTICES

 

		14.1	Unless otherwise provided herein, all notices or other communications required or permitted to be given
by any Party to any other Party pursuant hereto shall be in writing and personally delivered or transmitted by facsimile or electronic
mail addressed to the recipient as follows:

 

If to the Corporation, to:

 

Charlotte’s Web Holdings, Inc.

1600 Pearl Street, Suite 300

Boulder, CO 80302

 

		Attention:	Deanie Elsner, Chief Executive Officer

		Electronic Mail:	[REDACTED – Email
address]

 

and with a copy (which shall not constitute
notice) to:

 

DLA Piper (Canada) LLP

Suite 1000, Livingston Place West

250 2nd Street West

Calgary, Alberta

T2P 0CI

 		Attention:	Jarrod Isfeld

		Electronic Mail:	[REDACTED – Email
address]

 

If to the Agents, to:

 

Canaccord Genuity Corp.

161 Bay Street, Suite 3000

Toronto, Ontario M5J 2S1

 

		Attention:	Steve Winokur

		Electronic Mail:	[REDACTED – Email
address]

 

    27 

     

    

 

BMO Nesbitt Burns Inc.

First Canadian Place, 4th Floor

100 King Street West

Toronto, Ontario M5X 1H3

 

		Attention:	Andrew Warkentin

		Electronic Mail:	[REDACTED – Email
address]

 

and with a copy (which shall not constitute notice) to:

 

Stikeman Elliot LLP

5300 Commerce Court West

199 Bay Street

Toronto, Ontario

M5L 1B9

 

		Attention:	Martin Langlois

		Electronic Mail:	[REDACTED – Email
address]

 

or to such other address for delivery,
facsimile number or electronic mail address as a Party may otherwise designate by giving notice to the other Parties as provided herein.

 

		14.2	Any such notice or other communication delivered personally in accordance with Section 14.1 shall
be deemed to have been given and received by the addressee: (i) when actually delivered, if so delivered during the addressee’s
normal business hours on any Business Day; or (ii) at the commencement of the first Business Day following the actual time of delivery,
if not so delivered on a Business Day or during the addressee’s normal business hours.

 

		14.3	Any such notice or other communication transmitted by facsimile or electronic mail in accordance with
Section 14.1 shall be deemed to have been given and received by the addressee: (i) when transmitted by the transmitting Party,
if so transmitted during the addressee’s normal business hours on any Business Day; or (ii) at the commencement of the first
Business Day following the time of transmission, if not so transmitted on a Business Day or during the addressee’s normal business
hours; provided, however, that, in the case of a transmission by facsimile, the transmitting Party obtains and retains documentary confirmation
from its telecommunications equipment that the transmission was successful and, in the case of a transmission by electronic mail, the
addressee shall have confirmed receipt by return electronic mail transmission, which the Parties hereto agree to do so as soon as is reasonably
practicable upon receipt of any notice or other communication by electronic mail.

 

		15.	SUCCESSORS AND ASSIGNS

 

		15.1	This Agreement shall enure to the benefit of and be binding upon the Corporation and the Agents and their
respective successors and permitted assigns, and with respect to rights of indemnity and contribution as provided in Schedule F, the Indemnified
Parties contemplated therein.

 

		15.2	References herein to any of the Parties named in this Agreement shall be deemed to include the successors
and permitted assigns of such Party.

 

    28 

     

    

 

		15.3	Except as expressly provided in Schedule F, nothing in this Agreement (express or implied) is intended
to confer upon any Person other than the Parties and their respective successors and permitted assigns any rights, remedies, obligations
or liabilities under or by reason of this Agreement.

 

		15.4	No Party may assign its rights or obligations under this Agreement without the prior written consent of
the other Party.

 

		16.	GOVERNING LAW, ETC.

 

		16.1	This Agreement shall be governed by, and construed in accordance with, the
laws of the Province of Ontario applicable to contracts made and to be performed within the Province of Ontario.

 

		16.2	For the purpose of all legal proceedings, this Agreement shall be deemed to have been performed in the
Province of Ontario and the courts of the Province of Ontario shall have jurisdiction to entertain any action arising hereunder. Each
Party hereby irrevocably submits to the exclusive jurisdiction of the courts of the Province of Ontario for the adjudication of any dispute
arising hereunder or in connection herewith or with any transaction contemplated hereby, and hereby irrevocably waives, and agrees not
to assert in any suit, action or proceeding, any claim that it is not subject to the jurisdiction of any such court, that such suit, action
or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.

 

		16.3	Each Party hereby irrevocably waives any right it may have to a trial by jury in respect of any claim
based upon or arising out of this Agreement or any transaction contemplated hereby.

 

		17.	RELATIONSHIP BETWEEN THE PARTIES

 

		17.1	The Corporation acknowledges and agrees that, subject to Section 2.2:

 

		(a)	each of the Agents has been retained solely to act as firm underwriter (as that term is used in the Act),
as agent and not as principal, in connection with the sale of the Offered Shares, and that no fiduciary relationship between the Corporation
and the Agents has been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether the Agents
have advised or are advising the Corporation on other matters;

 

		(b)	the Corporation is capable of evaluating and understanding and does understand and accept the terms, risks
and conditions of the transactions contemplated by this Agreement;

 

		(c)	the Corporation has been advised that the Agents and their affiliates are engaged in a broad range of
transactions which may involve interests that differ from those of the Corporation, and that the Agents have no obligation to disclose
such interests and transactions to the Corporation by virtue of any fiduciary relationship; and

 

    29 

     

    

 

		(d)	it waives, to the fullest extent permitted by law, any claims it may have against the Agents for breach
of fiduciary duty or alleged breach of fiduciary duty, and agrees that the Agents shall not have liability (whether direct or indirect)
to it in respect of any such claim or to any Person asserting a fiduciary duty claim on behalf of or in right of the Corporation, including
securityholders, employees or creditors of the Corporation.

 

		17.2	This Agreement is not intended to create, and shall not be construed or deemed to create, a partnership
or joint venture between the Parties.

 

		18.	FORCE MAJEURE

 

		18.1	No Party shall be liable to any of the others, or held in breach of this Agreement, if prevented, hindered
or delayed in the performance or observance of any provision contained herein by reason of an act of a Force Majeure. Performance times
under this Agreement shall be extended for a period of time equivalent to the time lost because of any delay that is excusable under this
Section 18, subject in any case to Securities Laws.

 

		18.2	For the purposes of this Agreement, “Force Majeure” shall mean an event, condition
or circumstance (and the effect thereof including mechanical, electronic or communication interruptions, disruptions or failures resulting
from any of the foregoing) that is not within the reasonable control of the Party claiming a Force Majeure and which, notwithstanding
the exercise of commercially reasonable efforts to prevent such event, condition or circumstance or mitigate the effect thereof (which
each Party hereby covenants to exercise), the Party claiming a Force Majeure is unable to prevent or mitigate the effect thereof, and
which thus causes a delay or disruption in the performance of any obligation imposed on such Party hereunder. Subject to the foregoing,
such events of Force Majeure shall include strikes, lock-outs, work stoppages, work slow-downs, industrial disturbances, storms, fires,
floods, landslides, snowslides, earthquakes, explosions, lightning, tempest, accidents, epidemics, acts of war (whether declared or undeclared),
threats of war, actions of terrorists, blockades, riots, insurrections, civil commotions, public demonstrations, revolution, sabotage
or vandalism, acts of God, any laws, rules, regulations, orders, directives, restraints or other actions issued, imposed or taken by any
Governmental Body following the execution and delivery of this Agreement, and inability to obtain, maintain or renew or delay in obtaining,
maintaining or renewing necessary permits or approvals (after using reasonable commercial efforts to do so) following the execution and
delivery of this Agreement, or any cause similar to any of the foregoing; provided, however, that a Party’s own lack of funds or
other financial problems shall in no event constitute Force Majeure in respect of such Party.

 

		19.	JOINT AND SEVERAL LIABILITY

 

		19.1	In the event this Agreement is terminated in accordance with Section 13.1, and notwithstanding any
other provision of this Agreement, Charlotte’s Web, Inc. is jointly and severally liable with the Corporation, as a principal
and not as a surety, with respect to all of the representations, warranties, covenants, indemnities and agreements of the Corporation.

 

		20.	GENERAL

 

		20.1	Except as required by law or the policies of the TSX (which the Parties acknowledge will, among other
things, require this Agreement to be filed on SEDAR and a press release regarding this Agreement), no public announcement or press release
concerning this Agreement or the subject matter hereof may be made by a Party without the prior consent and approval of the other Party,
which consent and approval shall not be unreasonably withheld.

 

    30 

     

    

 

 

 

		20.2	This Agreement (including all schedules attached hereto), any Placement Notices issued pursuant hereto
and any Settlement Procedures agreed to by the Parties constitute the entire agreement between the Parties concerning the subject matter
hereof, and supersede all other prior and contemporaneous agreements, understandings, negotiations and undertakings (both written and
oral) between the Parties concerning the subject matter hereof.

 

		20.3	No amendment to this Agreement shall be valid or binding unless set forth in writing and executed by the
Parties. No waiver of any breach of any provision of this Agreement will be effective or binding unless made in writing and signed by
the Party purporting to give the same and, unless otherwise provided, will be limited to the specific breach waived.

 

		20.4	If any one or more of the provisions hereof, or the application thereof in any circumstance, is held invalid,
illegal or unenforceable as determined by a court of competent jurisdiction, then such provision shall be given full force and effect
to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the provisions hereof shall be construed
as if such invalid, illegal or unenforceable provision was not and had never been contained herein, but only to the extent that giving
effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the Parties as
reflected in this Agreement.

 

		20.5	Without limiting Section 20.4, if one or more of the provisions hereof conflicts with any legal or
regulatory requirement to which this Agreement and the relationship of the Parties hereunder are properly subject, then such legal or
regulatory requirement shall prevail and the Parties shall forthwith meet and negotiate in good faith the manner in which this Agreement
shall be deemed to be amended to the extent required to eliminate any such conflict.

 

		20.6	The rights and remedies of the Parties hereunder are cumulative and are in addition to, and not in substitution
for, any other rights and remedies available at law or in equity or otherwise. No single or partial exercise by a Party of any right or
remedy precludes or otherwise affects the exercise of any other right or remedy to which that Party shall be entitled.

 

		20.7	Each Party shall from time to time execute and deliver all such further documents and instruments and
do all acts and things as any of the other Parties may reasonably require to effectively carry out or better evidence or perfect the full
intent and meaning of this Agreement.

 

		20.8	Time shall be of the essence of this Agreement.

 

		20.9	This Agreement may be executed in two or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. Delivery of an executed Agreement by one Party to the other may
be made by facsimile or other electronic transmission.

 

    31 

     

    

 

If the foregoing correctly sets forth the understanding
between the Corporation and the Agents, please confirm your acceptance and agreement by executing a copy of this letter in the space provided
below for that purpose and delivering the same to the Agent, whereupon this letter shall constitute a binding agreement between the Corporation
and the Agents.

 

[Remainder of this page intentionally
left blank. Signature page follows.]

 

    32 

     

    

 

	 	Yours truly,
	 	 	 
	 	CANACCORD GENUITY CORP.
	 	 	 
	 	 	 
	 	By:	(signed) "Steve Winokur"
	 	Name:	Steve Winokur
	 	Title:	Managing Director
	 	 	 
	 	 	 
	 	BMO NESBITT BURNS INC.
	 	 	 
	 	 	 
	 	By:	(signed) "Andrew Warkentin"
	 	Name:	Andrew Warkentin
	 	Title:	Managing Director
	 	 	 
	 	 	 
	 	By:	(signed) "Manny Dhillon"
	 	Name:	Manny Dhillon
	 	Title:	Managing Director

 

THE FOREGOING
IS ACCEPTED AND AGREED as of the date first above written.

 

	 	CHARLOTTE'S WEB HOLDINGS, INC.
	 	 	 
	 	 	 
	 	By:	(signed) "Adrienne Elsner"
	 	Name:	Adrienne Elsner
	 	Title:	Chief Executive Officer

 

[Signature Page to the Equity Distribution
Agreement]

 

     

     

    

 

Schedule A

to the Equity Distribution Agreement made as of June 3, 2021 among

Charlotte’s Web Holdings, Inc.. Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.

 

DESIGNATED REPRESENTATIVES AND AUTHORIZED REPRESENTATIVES

 

The Designated Representatives and Authorized
Representatives of the Corporation are as follows:

 

	Name and 

Office/Title	Email Address	Telephone Numbers
	Deanie Elsner, Chief Executive Officer	[Redacted]	[Redacted]
	Russell
    Hammer, Chief Financial Officer	[Redacted]	[Redacted]
	Mario Pasquale, Vice President Corporate Treasurer	[Redacted]	[Redacted]

 

The Designated Representatives and Authorized
Representatives of the Agents are as follows:

 

	Name and 

Office/Title	Email Address	Telephone Numbers
	Canaccord
	Steve Winokur, MD Investment Banking	[Redacted]	[Redacted]
	Ron Sedran, MD Investment Banking	[Redacted]	[Redacted]
	Genevieve Eccleston, Director Investment Banking	[Redacted]	[Redacted]
	Emily Jameson, Vice President, Investment Banking	[Redacted]	[Redacted]
	BMO
	James Ehrensperger, Managing Director, Equity Products	[Redacted]	[Redacted]

 

Schedule A

 

     

     

    

 

Schedule B

to the Equity Distribution Agreement made as of June 3, 2021 among

Charlotte’s Web Holdings, Inc., Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.

 

FORM OF PLACEMENT NOTICE

 

FROM: Charlotte’s
Web Holdings, Inc.

 

TO: _____________________________ (the “Specified
Agent”)

 

DATE:___________________________,
______________

 

SUBJECT:     Placement
Notice No. _________________

 

Reference is made herein to the Equity Distribution
Agreement dated June 3, 2021 (the “Equity Distribution Agreement”) among Charlotte’s Web Holdings, Inc.,
Canaccord Genuity Corp. (“Canaccord”) and BMO Nesbitt Burns Inc. (“BMO” and together with Canaccord,
the “Agents”). Unless otherwise defined herein, all capitalized terms referred to in this Placement Notice shall have
the meanings attributed to them in the Equity Distribution Agreement.

 

Trading Instructions

 

Pursuant to the
terms and subject to the conditions contained in the Equity Distribution Agreement, the undersigned hereby requests, as a duly appointed
Authorized Representative of the Corporation, that the Specified Agent sell Placement Shares, as agent of the Corporation, in accordance
with the following trading instructions (if any of the following trading instructions are not applicable, specify “N/A”):

 

	Maximum number of Placement Shares to be sold (A)	 	 
	Total number of Common Shares outstanding on the date of this Placement Notice (B)	 	 
	Maximum number of Placement Shares to be sold expressed as a percentage of the total number of Common Shares outstanding on the date of this Placement Notice (A + B x 100)	 	%
	Minimum price per Placement Share to be sold	 	$
	First permitted Trading Day of trading	 	 
	Last permitted Trading Day of trading	 	 
	Specific dates on which Placement Shares may not be sold:
	 
	Other trading instructions:
	 

 

Schedule B-1

 

     

     

    

 

Other Terms Applicable to this Placement Notice

 

 

Upon receiving this Placement Notice, an Authorized
Representative of the Specified Agent will acknowledge receipt hereof by signing this Placement Notice and returning a copy hereof to
the Corporation by electronic mail addressed and sent to the Designated Representatives of the Corporation or notify the Corporation that
the Specified Agent declines to accept the Placement Notice. For all purposes hereof, the Specified Agent will be deemed not to have received
this Placement Notice unless receipt hereof shall have been so acknowledged by an Authorized Representative of the Specified Agent.

 

This Placement Notice
is effective upon receipt by the Specified Agent unless and until the earliest of the following occurs: (i) the Specified Agent advises
the Corporation, by electronic mail addressed and sent to the Designated Representatives of the Corporation, that it declines to accept
the terms of sale set forth in this Placement Notice; (ii) the entire amount of the Placement Shares specified herein has been sold
and all such sales have settled in accordance with the terms and conditions of the Equity Distribution Agreement; (iii) the
Corporation or the Specified Agent suspends the sale (or further sale, as applicable) of the Placement Shares in accordance with Section 6
of the Equity Distribution Agreement; (iv) the Specified Agent receives from the Corporation a subsequent Placement Notice with parameters
that expressly supersede those contained in this Placement Notice; or (v) the Equity Distribution Agreement has been terminated pursuant
to Section 13 thereof.

 

This Placement Notice
shall not contain any parameters that conflict with the provisions of the Equity Distribution Agreement or that subject or purport to
impose upon or subject the Specified Agent to any obligations in addition to the Specified Agent’s obligations contained
in the Equity Distribution Agreement. In the event of a conflict between the terms of the Equity Distribution Agreement and the terms
of this Placement Notice with respect to an issuance and sale of Placement Shares, the terms of the Equity Distribution Agreement shall
prevail.

 

The Corporation
covenants and agrees that the delivery of this Placement Notice by or on behalf of the Corporation to the Specified Agent shall be deemed
to be an affirmation that: (i) the representations and warranties made by the Corporation in the Equity Distribution Agreement
and in any certificates provided pursuant thereto are true and correct as at the time this Placement Notice is issued, except only to
the extent that any such representation and warranty is, by its express terms, limited to a specific date, or as expressly disclosed in
Exhibit A to this Placement Notice; and (ii) the Corporation has complied with all covenants and agreements to be performed,
and satisfied all conditions to be satisfied, by or on the part of the Corporation under the Equity Distribution Agreement at or prior
to the time this Placement Notice is issued.

 

[Remainder of this page intentionally
left blank. Signature page follows.]

 

Schedule B-2

 

     

     

    

 

	 	CHARLOTTE'S WEB HOLDINGS, INC.
	 	 
	 	Per: 
	 	 	 
	 	 	Signature of Authorized Representative
	 	 	 
	 	 	 
	 	 	Name of Authorized Representative (Please Print)
	 	 	 
	 	 	 
	 	 	Title of Authorized Representative (Please Print)
	 	 	 
	 	 	 
	 	 	E-mail Address of Authorized Representative (Please Print)
	 	 	 
	 	 	 
	 	 	Direct Office Telephone Number (and extension, if applicable)
	 	 	 
	 	 	 
	 	 	Telephone Number (Cell)

 

[signatures continued on next page]

 

[Signature Page to the Equity Distribution
Agreement-1]

 

     

     

    

 

Acknowledged this ________ day of ____________________,

20___ by the Specified Agent.

 

	Per:	 
	 	 	 
	 	Signature of Authorized Representative 	 
	 	 	 
	 	 	 
	 	Name of Authorized Representative (Please Print)	 
	 	 	 
	 	 	 
	 	Title of Authorized Representative (Please Print)	 
	 	 	 
	 	 	 
	 	E-mail Address of Authorized Representative (Please Print)	 
	 	 	 
	 	 	 
	 	Direct Office Telephone Number (and extension, if applicable)	 
	 	 	 
	 	 	 
	 	Telephone Number (Cell)	 

 

[Signature Page to the Equity Distribution
Agreement-2]

 

     

     

    

 

Exhibit A to Placement Notice

 

Exceptions to the representations and warranties
made by the Corporation in the Equity Distribution Agreement and in any certificates provided pursuant thereto:

 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

 

Exhibit A to Placement Notice

 

     

     

    

 

 

	Schedule C

to the Equity Distribution Agreement made as of June 3, 2021 among

Charlotte’s Web Holdings, Inc., Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.

 

REPRESENTATIONS AND WARRANTIES

 

		1.	The Corporation represents and warrants to, and covenants with, the Agent (and acknowledges that the Agent
is relying on such representations, warranties and covenants) as follows:

 

		(a)	the information and statements (except for the Agents’ Information) contained in the Prospectus
(i) are true and correct, (ii) contain no misrepresentation and (iii) constitute full, true and plain disclosure of all
material facts relating to the Corporation and the Offered Shares as required by Securities Laws;

 

		(b)	no material fact has been omitted from such information and statements (except for the Agents’ Information)
that is required to be stated in such information and statements or that is necessary to make a statement contained in such information
and statements not misleading in the light of the circumstances under which it was made;

 

		(c)	except with respect to any Agents’ Information, the Prospectus complies with all applicable requirements
of Securities Laws;

 

		(d)	the statistical and market-related data included in the Prospectus or the marketing materials are based
on or derived from sources that are believed by the Corporation to be reliable and accurate in all material respects;

 

		(e)	since the respective dates as of which information is given in the Prospectus or in the documents incorporated
by reference therein, except as otherwise stated therein, (i) there has been no Material Adverse Change; (ii) there have been
no transactions entered into by the Corporation, other than those in the ordinary course of business, which are material with respect
to the Corporation; and (iii) there has been no dividend or distribution of any kind declared, paid or made by the Corporation on
any class of its shares;

 

		(f)	the Corporation has been duly incorporated and is existing as a corporation and in good standing under
the laws of the Province of British Columbia;

 

		(g)	Charlotte’s Web, Inc. has been duly incorporated and is existing as a corporation and in good
standing under the laws of the State of Delaware;

 

		(h)	except as described in the Prospectus or in the documents incorporated by reference therein, each member
of the Corporation Group has the requisite corporate power and authority to own, lease and operate its properties and assets (including
licenses and other similar rights) and to conduct its business as described in the Prospectus or in the documents incorporated by reference
therein, and is properly registered or licensed to transact business and is in good standing under the laws of all jurisdictions in which
its business is carried on or in which it owns or leases properties;

 

    Schedule C-1

     

    

 

		(i)	the Corporation has an authorized share capital consisting of an unlimited number of Common Shares, an
unlimited number of proportionate voting shares and an unlimited number of preferred shares, of which, as of the date hereof, an aggregate
of 109,378,959 Common Shares, an aggregate of 76,264.4050 proportionate voting shares and no preferred shares are issued and outstanding;

 

		(j)	all of the Common Shares and proportionate voting shares of the Corporation have been duly and validly
authorized and issued and are fully paid and non-assessable shares of the Corporation, and none of such Common Shares or proportionate
voting shares of the Corporation were issued in violation of the pre-emptive right or similar rights of any securityholder of the Corporation
or of any other person;

 

		(k)	the Offered Shares have been duly created, authorized, allotted and reserved for issuance and after payment
of applicable consideration:

 

		(i)	the Offered Shares will be duly and validly issued and outstanding as fully paid and non-assessable shares
in the capital of the Corporation; and

 

		(ii)	the Offered Shares will not have been issued in violation of or subject to any preemptive or contractual
rights to purchase securities issued or granted by the Corporation;

 

		(l)	all of the issued and outstanding shares or other equity interests in Charlotte’s Web, Inc.
are 100% owned by the Corporation (free and clear of all Liens); in addition, all of the issued and outstanding shares or other equity
interests in Charlotte’s Web, Inc. were duly and validly authorized and issued by Charlotte’s Web, Inc. and are
fully paid and non-assessable shares or other equity interests of Charlotte’s Web, Inc.;

 

		(m)	other than (i) the shares or other equity interests in the subsidiaries as set out in the Prospectus
or in the documents incorporated by reference therein, (ii) pursuant to the Option Agreement, the Corporation does not have any equity
interest, directly or indirectly, in any person;

 

		(n)	no person, firm or corporation has any agreement or option, or right or privilege (whether pre-emptive
or contractual) capable of becoming an agreement or option, for the purchase from any member of the Corporation Group of any unissued
shares thereof, except for the following issued and outstanding securities as of the date hereof: (A) stock options under the Company’s
2015 legacy option plan exercisable to purchase 1,300,012 Common Shares; (B) stock options under the Company’s 2018 option
plan exercisable to purchase 2,716,776 Common Shares; (C) 9,483,140 common share purchase warrants; and (D) 917,641 restricted
share awards;

 

		(o)	other than the Legacy Stock Option Plan, the LTIP, the employee share purchase plan, and the stock options
of the Corporation referred to in Section 1(n), the Corporation has no stock-based benefit or incentive plan in effect;

 

    Schedule C-2

     

    

 

		(p)	the Corporation has the requisite corporate power, authority and capacity to enter into this Agreement
and to perform its obligations hereunder and thereunder and to execute and file the Prospectus;

 

		(q)	this Agreement and the performance by the Corporation of its obligations hereunder have been duly authorized
by all necessary corporate action, and the Agreement has been duly executed and delivered by the Corporation and constitutes a legal,
valid and binding obligation of the Corporation, enforceable against the Corporation in accordance with its terms, except as enforcement
hereof and thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the rights of creditors
generally and except as limited by the application of general equitable principles, including the limitation that rights of indemnity,
contribution and waiver may be limited by applicable laws;

 

		(r)	the rights, privileges, restrictions, conditions and other terms attaching to the Common Shares, the proportionate
voting shares, the preferred shares of the Corporation and any other securities of the Corporation, and the Offered Shares, conform in
all material respects to the respective descriptions thereof contained in the Prospectus;

 

		(s)	the Financial Statements incorporated by reference in the Prospectus have been prepared in conformity
with IFRS, consistently applied throughout the periods involved, and comply as to form in all material respects with the applicable accounting
requirements of Securities Laws and laws of the Province of British Columbia. Such Financial Statements present fairly in all material
respects the financial position, financial performance and cash flows of the relevant entity as at the dates and for the periods of such
Financial Statements. The other financial information included in the Prospectus presents fairly in all material respects the information
shown therein and, other than those aspects of the non-IFRS measures and industry metrics that are not derived from the Financial Statements,
has been compiled on a basis consistent with that of the Financial Statements;

 

		(t)	all material accruals for unpaid vacation pay, premiums for unemployment insurance, health premiums, pension
plan premiums, accrued wages, salaries and commissions and Employee Plans payments of the Corporation Group have been recorded in conformity,
in all material respects, with IFRS and comply in all material respects as to form with the applicable accounting requirements, and are
reflected on the books and records of the Corporation Group, as applicable. There are no outstanding violations or defaults under the
Employee Plans or any actions, suits, claims, trials, demands, investigations, arbitration proceedings or other proceedings pending or
threatened with respect to any of the Employee Plans that would, individually or in the aggregate, have a Material Adverse Effect. The
execution, delivery and performance of this Agreement by the Corporation does not constitute an event or condition under any Employee
Plan that entitles any employee or former employee to a payment, promise of payment, acceleration of vesting or any other benefit to which
that individual would not otherwise be entitled;

 

		(u)	except as disclosed in the Prospectus (including the Financial Statements incorporated by reference therein),
no member of the Corporation Group has outstanding any debentures, notes, mortgages or other indebtedness that is material to the Corporation
Group taken as a whole;

 

    Schedule C-3

     

    

 

		(v)	no member of the Corporation Group has incurred any liabilities or obligations (whether accrued, absolute,
contingent or otherwise) that continue to be outstanding, except: (i) as disclosed or contemplated in the Prospectus (including the
Financial Statements incorporated by reference therein); and (ii) as incurred in the ordinary course of business by the Corporation
Group and which do not, individually or in the aggregate, have a Material Adverse Effect;

 

		(w)	except as disclosed in the Prospectus (including the Financial Statements incorporated by reference therein),
since March 31, 2021, (i) there has not been any change in the share capital, long-term debt, financial condition or operations
of the other than changes in the ordinary course of business; (ii) the business of the Corporation Group has been carried on in the
ordinary course; (iii) none of the property or assets of the Corporation Group has been transferred, assigned, sold, distributed,
distributed by way of dividend or otherwise disposed of other than in the ordinary course of business; and (iv) the Corporation Group
has not cancelled any debts or entitlements other than in the ordinary course of business;

 

		(x)	Ernst & Young LLP is independent in accordance with the rules of professional conduct applicable
to auditors in Canada, and applicable Securities Laws, and there has not been any reportable event (within the meaning of NI 51-102) with
such auditors with respect to audits of the Corporation and Charlotte’s Web, Inc.;

 

		(y)	except as would not have a Material Adverse Effect, no member of the Corporation Group is in breach or
violation of: (i) any term or provision of its constating documents; (ii) any resolution of its board of directors or shareholders;
or (iii) any contract, mortgage, note, indenture, joint venture or partnership arrangement, agreement (written or oral), instrument,
lease, judgment, decree, order, statute, rule, licence, law or regulation applicable to it or by which it is bound;

 

		(z)	no member of the Corporation Group is in material violation or material default of, nor will the execution
of this Agreement and the Prospectus, the performance by the Corporation Group of its obligations hereunder, result in any material breach
or material violation of, or be in conflict with, or constitute a material default under, or create a state of facts which after notice
or lapse of time, or both, would constitute a material default under, or give rise to any right to accelerate the maturity or require
the prepayment of any indebtedness under, or result in the imposition of any Lien upon any property or assets of the Corporation Group
pursuant to (i) any term or provision of the constating documents of any member of the Corporation Group or any resolution of the
directors or shareholders of any member of the Corporation Group; (ii) any contract, mortgage, note, indenture, joint venture or
partnership arrangement, agreement (written or oral), instrument, lease (including for real property) or licence to which any member of
the Corporation Group is a party or bound or to which any of the business, operations, property or assets of the Corporation Group are
subject (collectively, “Corporation Group Contracts”); or (iii) any statute, law, rule, regulation, judgment,
order or decree applicable to the Corporation Group or their business, operations or assets, of any court, Governmental Body, arbitrator
or other authority having jurisdiction over the Corporation Group;

 

    Schedule C-4

     

    

 

		(aa)	there are no business relationships, related-party transactions or off-balance sheet transactions involving
any member of the Corporation Group or any other person required to be described in the Prospectus (including the Financial Statements
incorporated by reference therein) which have not been described as required under IFRS; and there are no contracts or other documents
that are required to be described in the Prospectus under Securities Laws;

 

		(bb)	all material Corporation Group Contracts have been made available to the Agent in the Corporation’s
data room, and all Corporation Group Contracts are valid and binding obligations of the applicable member of the Corporation Group and
are in good standing; and (i) no event of default or event which after the giving of notice or the lapse of time or both would constitute
an event of default, has occurred and is outstanding under any Corporation Group Contract; (ii) the Corporation Group has no knowledge
of any default by the other parties to each Corporation Group Contract; and (iii) no member of the Corporation Group has waived any
material rights under any Corporation Group Contract;

 

		(cc)	there is no requirement to obtain a consent, approval or waiver of a party under any material Corporation
Group Contract in respect of any of the transactions contemplated by this Agreement, other than such consents, approvals and waivers as
have been obtained by any member of the Corporation Group as at the date hereof;

 

		(dd)	no securities commission, stock exchange or comparable authority has issued any order preventing or suspending
the use of the Prospectus or instituted proceedings for that purpose and no such proceedings are pending or, to the knowledge of the Corporation
Group, contemplated or threatened;

 

		(ee)	the Transfer Agent has been duly appointed as registrar and transfer agent for the Common Shares and proportionate
voting shares of the Corporation;

 

		(ff)	the form of the certificates for the Common Shares, proportionate voting shares of the Corporation and
any other securities of the Corporation have been approved by the board of directors of the Corporation and adopted by the Corporation
and comply with all applicable legal and stock exchange requirements and do not conflict with the Corporation’s constating documents;

 

		(gg)	except as disclosed in writing to the Agents, there is no litigation, arbitration or governmental or other
proceeding, suit or investigation at law or in equity before any Governmental Body, in progress, pending or, to the knowledge of the Corporation
Group, threatened against, or involving the assets, properties or business of, any member of the Corporation Group which is material or
which would adversely affect the consummation of the transactions contemplated by this Agreement in any material respect or the performance
by the Corporation of its obligations hereunder;

 

    Schedule C-5

     

    

 

		(hh)	(i) each member of the Corporation Group is in compliance in all material respects with the provisions
of applicable federal, provincial, state, local and foreign laws and regulations respecting employment; (ii) no labour dispute with
the employees of any member of the Corporation Group exists or is pending or, to the knowledge of the Corporation Group, threatened or
imminent, and the Corporation Group has no knowledge of any existing or imminent labour disturbance by the employees of the Corporation
Group’s principal contractors; (iii) the labour relations of the Corporation Group are satisfactory; and (iv) no collective
agreement or collective bargaining agreement or modification thereof has expired and none is currently being negotiated by any member
of the Corporation Group;

 

		(ii)	no material supplier, distributor, customer or service provider of any member of the Corporation Group
has notified the Corporation Group in writing, and to the knowledge of the Corporation Group, there is no reason to believe, that any
such material supplier, distributor, customer or service provider will not continue dealing with applicable member of the Corporation
Group on substantially the same terms as presently conducted, subject to changes in pricing and volume in the ordinary course;

 

		(jj)	except as described in the Prospectus or the documents incorporated by reference therein, each member
of the Corporation Group has conducted and is conducting its business in compliance in all material respects with all applicable Laws
of each jurisdiction in which it carries on business and with all applicable Laws, tariffs and directives material to its operations,
including all applicable federal, provincial, state, municipal, and local zoning, environmental, controlled substance laws and regulations
and other lawful requirements of any Governmental Body, including, but not limited, to relevant permits and licenses;

 

		(kk)	all product research and development activities, including quality assurance, quality control, testing,
and research and analysis activities, conducted by the Corporation Group in connection with their business is being conducted in compliance,
in all material respects, with all industry, laboratory safety, management and training standards applicable to the business and all such
processes, procedures and practices required in connection with such activities are in place as necessary and are being complied with
in all material respects;

 

		(ll)	except as described in the Prospectus or in the documents incorporated by reference therein, to the knowledge
of the Corporation Group, all supply, production and processing partners have obtained and are in compliance with all authorizations required
by the jurisdictions in which they operate to permit them to conduct their business as currently conducted or proposed to be conducted;
	 	 	 
		(mm)	except as described in the Prospectus or the documents incorporated
by reference therein, there is no material litigation or governmental or other proceeding and to the knowledge of the Corporation Group,
investigation at law or in equity before any Governmental Body, domestic or foreign, in progress, pending or, to the Corporation Group’s
knowledge, threatened (and the Corporation Group do not know of any basis therefor) against, or involving the assets, properties or business
of, the Corporation Group, nor are there any matters under discussion with any Governmental Body relating to taxes, governmental charges,
orders or assessments asserted by any such authority, and to the Corporation Group’s knowledge, there are no facts or circumstances
which would reasonably be expected to form the basis for any such litigation, governmental or other proceeding or investigation, taxes,
governmental charges, orders or assessments;

 

    Schedule C-6

     

    

 

		(nn)	each member of the Corporation Group has security measures and safeguards in place to protect Personally
Identifiable Information that it may collect from registered customers and other parties from illegal or unauthorized access or use by
its personnel or third parties in a manner that violates applicable privacy laws. The Corporation Group has complied in all material respects
with all applicable privacy and consumer protection laws and has not collected, received, stored, disclosed, transferred, used, misused
or permitted unauthorized access to any information protected by privacy laws, whether collected directly or from third parties, in an
unlawful manner. The Corporation Group has taken all reasonable steps to protect Personally Identifiable Information against loss or theft
and against unauthorized access, copying, use, modification, disclosure or other misuse;

 

		(oo)	there are no bonuses, distributions or salary payments which will be payable by any member of the Corporation
Group, outside of the ordinary course of business, to any officer, director, employee or consultant of the Corporation Group relating
to their employment with, or services rendered to, the Corporation Group;

 

		(pp)	other than usual and customary health and related benefit plans for employees, the Prospectus discloses
to the extent required by applicable Securities Laws each Employee Plan, each of which has been maintained in all material respects with
its terms and with the requirements prescribed by any and all statutes, orders, rules and regulations that are applicable to such
Employee Plans;

 

		(qq)	(i) there are no workers’ compensation claims pending against any member of the Corporation
Group; and (ii) to the knowledge of the Corporation Group (A) none of the executive officers of the Corporation Group described
in the Prospectus or the documents incorporated by reference therein has any plans to terminate his or her employment, (B) none of
the executive officers of the Corporation Group described in the Prospectus or the documents incorporated by reference therein or any
other employee of the Corporation Group is subject to any secrecy or non-competition agreement or any other agreement (other than the
Name and Likeness Agreement) or restriction of any kind that would impede in any way the ability of such executive officer or employee
to carry out fully all activities of such employee in furtherance of the Corporation Group’s business, and (C) none of the
executive officers of the Corporation Group described in the Prospectus or the documents incorporated by reference therein or any other
employee or former employee of the Corporation Group has any claim with respect to any Intellectual Property rights of the Corporation
Group (other than pursuant to the Name and Likeness Agreement);

 

    Schedule C-7

     

    

 

		(rr)	(i) to the knowledge of the Corporation Group, no member of the Corporation Group has, directly or
indirectly, (A) made or authorized any contribution, payment or gift of funds or property of the Corporation Group or other unlawful
expense relating to political activity to any official, employee or agent of any Governmental Body or (B) made any direct or indirect
contribution from corporate funds to any candidate for public office, in either case, where either the payment or the purpose of such
contribution, payment or gift was, is, or would be prohibited under the Canada Corruption of Foreign Public Officials Act (Canada), the
Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada), or Title 18 United States Code Section 1956 and 1957 (U.S.),
or the rules and regulations promulgated thereunder or under any other legislation of any relevant jurisdiction covering a similar
subject matter applicable to the Corporation Group and their respective operations, and no member of the Corporation Group has instituted
and maintains policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance
with such laws; and (ii) the operations of each member of the Corporation Group are and have been conducted at all times in compliance,
in all material respects, with such laws and no suit, action or proceeding by or before any Governmental Body or any arbitrator involving
the Corporation Group with respect to such legislation is in progress, pending or, to the knowledge of the Corporation Group, threatened;

 

		(ss)	the Corporation Group, or, to the knowledge of the Corporation Group, any director, officer, employee,
agent or affiliate of the Corporation Group, is not (i) currently the subject of any sanctions administered by the Office of Foreign
Assets Control of the U.S. Treasury Department or other relevant sanctions authority (collectively, “Sanctions”), or
(ii) located, organized or resident in a country or territory that is the subject of Sanctions (including, without limitation, Burma/Myanmar,
Cuba, Iran, North Korea, Sudan and Syria); and the Corporation Group will not, directly or indirectly, use any Net Proceeds, or lend,
contribute or otherwise make available such proceeds to a subsidiary, joint venture partner or other person, for the purpose of financing
the activities of any person currently subject to any Sanctions;

 

		(tt)	subject to the Name and Likeness Agreement, (i) each member of the Corporation Group owns or has
the right to use all patents, patent rights, licences, inventions, copyrights, know how (including trade secrets and other unpatented
and/or unpatentable proprietary or confidential information, systems or procedures), trade-marks, service marks, trade names and other
intellectual property, including those listed in the Prospectus (collectively, “Intellectual Property”) and all technology
used or held for use in the conduct of the business now operated by the Corporation Group without any conflict with or infringement upon
the rights of others, in each case with such exceptions as would not, individually or in the aggregate, result in a Material Adverse Effect
and subject to limitations contained in any applicable license agreement; (ii) to the extent any Intellectual Property owned by the
Corporation Group has been created in whole or in part by current or past employees, consultants or independent contractors, any rights
therein of such persons have been irrevocably assigned in writing to the Corporation Group, such persons have waived all moral rights
in such persons’ contribution to such Intellectual Property or component thereof; (iii) there are no third parties who have
or, to the knowledge of the Corporation Group, who will be able to establish rights to any Intellectual Property owned or licensed by
the Corporation Group or rights in the subject matter of such Intellectual Property; (iv) the Corporation Group has no knowledge
of any Intellectual Property held by others that would prevent the development, use, sale, lease, license and service of products now
existing or under development by the Corporation Group, other than those sourced from third parties; (v) to the knowledge of the
Corporation Group, there is no material infringement by third parties of such Intellectual Property; (vi) there is no action, suit,
proceeding or claim pending or, to the knowledge of the Corporation Group, threatened by others challenging the Corporation Group’s
rights in or to any Intellectual Property or the validity or scope of any Intellectual Property owned, licensed or commercialized by the
Corporation Group, and the Corporation Group has no knowledge of any other fact which could form a reasonable basis for any such action,
suit, proceeding or claim in each case; and (vii) to the knowledge of the Corporation Group, all trade secrets and other confidential
proprietary information forming part of or in relation to the Intellectual Property being owned or licensed by the Corporation Group is
and remains confidential to the Corporation Group;

 

    Schedule C-8

     

    

 

		(uu)	no member of the Corporation Group has taken, nor will any member of the Corporation Group take, any action
which is designed to or which constitutes or might reasonably be expected to cause or result in stabilization or manipulation of the price
of any security of the Corporation to facilitate the sale or resale of the Common Shares of the Corporation or the Offered Shares;

 

		(vv)	no approval, authorization, consent, permit, qualification, license, decree or order from, and no filing,
registration or recording with, any Governmental Body having jurisdiction over the Corporation is required for the performance by the
Corporation of its obligations under this Agreement, the issuance and sale of the Offered Shares hereunder or the transactions contemplated
by this Agreement, except those which have been obtained or such customary post Settlement Date notice filings with the Qualifying Authorities
and the TSX;
	 	 	 
		(ww)	except as disclosed in the Prospectus, each member of the Corporation
Group currently possesses such permits, licenses, approvals, consents or other authorizations (collectively, “Governmental Licenses”)
issued by the appropriate federal, provincial, state, local or foreign regulatory agencies or bodies as are necessary to conduct the
business now operated by them, except where the failure to hold such Governmental Licenses would not, individually or in the aggregate,
result in a Material Adverse Effect. Except as disclosed in the Prospectus, each member of the Corporation Group is in compliance with
the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, individually or in the aggregate,
result in a Material Adverse Effect;

 

		(xx)	the Corporation Group does not own any real property and has good and marketable title to all personal
and movable properties owned by them, in each case, free and clear of all Liens;

 

		(yy)	(i) all real property, offices, stores and buildings, held under lease by the Corporation Group,
including the leases described in the Prospectus or the documents incorporated by reference therein (the “Leased Properties”)
are held by it under valid, subsisting and enforceable leases (the “Leases”); (ii) the buildings, improvements,
fixtures and other structures located on the Leased Properties, and the operation and maintenance thereof, as now operated and maintained,
comply in all material respects with all applicable laws and regulations, municipal or otherwise, and with the terms and conditions of
the Leases; (iii) there are no expropriation or similar proceedings, actual or threatened, of which the Corporation Group has received
written notice against or in respect of the Leased Properties or any part thereof; (iv) all rental and other payments and obligations
required to be paid or performed under the terms and conditions of the Leases have been duly paid and performed by the Corporation Group;
(v) no member of the Corporation Group is in default of any of its material obligations under any of the Leases and, to the knowledge
of the Corporation Group, none of the landlords or other parties to any of the Leases are in default of any their material obligations
under any of the Leases; (vi) no consent of any landlord under any of the Leases is required in order to issue and sell the Offered
Shares or carry out the transactions contemplated in this Agreement and the Prospectus; and (vii) each of the Leased Properties has
adequate access to and from public streets or highways for the normal operations of the business of the Corporation Group and, to the
knowledge of the Corporation Group, there is no fact or circumstance which could result in the termination or restriction of such access;

 

    Schedule C-9

     

    

 

		(zz)	to the knowledge of the Corporation, none of the Corporation’s directors or officers is now, or
has ever been, subject to an order or ruling of any securities regulatory authority or stock exchange prohibiting such individual from
acting as a director or officer of a public Corporation or of a Corporation listed on a particular stock exchange;

 

		(aaa)	except as described in the Prospectus or the documents incorporated by reference therein, no director
or officer of, or any other person not dealing at arm’s length with, the Corporation Group, its affiliates or their directors or
officers, will continue to be engaged in any material transaction or arrangement with or to be a party to a material contract with, or
have any material indebtedness, liability or obligation to, the Corporation Group;

 

		(bbb)	except as described in the Prospectus or the documents incorporated by reference therein, no member of
the Corporation Group is a party to or bound by, and none of the business, operations, property or assets of any member of the Corporation
Group is subject to, any material non-arm’s length agreements or arrangements other than on terms and at a price that would have
applied if the parties had been dealing at arm’s length;

 

		(ccc)	the Corporation is not prohibited directly or indirectly, from paying any dividends or from making any
other distributions on its share capital;

 

		(ddd)	each member of the Corporation Group (i) is in compliance with any and all applicable laws and regulations
relating to the protection of human health and safety, the environment or substances regulated by laws, including hazardous or toxic substances
or wastes, pollutants or contaminants (“Environmental Laws”), (ii) has received all material permits or other
approvals required of them under applicable Environmental Laws to conduct its business, and (iii) is in compliance with all terms
and conditions of any such permit or approval, except in all such cases where such non-compliance with Environmental Laws, failure to
receive required permits or other approvals or failure to comply with the terms and conditions of such permits or approvals would not
have a Material Adverse Effect;

 

    Schedule C-10

     

    

 

		(eee)	each member of the Corporation Group has (i) timely filed (or have had timely filed on their behalf)
all returns, declarations, reports, estimates, information returns, elections and statements (“Returns”) required to
be filed with or sent to any taxing authority having jurisdiction since incorporation or organization, and all such Returns have, in all
material respects, been prepared in accordance with the provisions of all applicable legislation and are true, correct and complete in
all material respects; (ii) timely and properly paid (or have had paid on its behalf) all governmental taxes and other charges due
or claimed to be due by a Governmental Body (including all instalments on account of taxes for the current year); and (iii) properly
withheld or collected and remitted all amounts required to be withheld or collected and remitted by it in respect of any governmental
taxes or other charges;

 

		(fff)	no member of the Corporation Group has been notified of, nor is it a party to, any shareholders’
agreement, voting agreement, investor rights agreement or other agreement which in any manner affects the voting or control of any securities
of any member of the Corporation Group, the nomination of directors to the board of any member of the Corporation Group or the operations
or affairs of any member of the Corporation Group;

 

		(ggg)	there are no contracts, agreements or understandings between any member of the Corporation Group and any
person granting such person the right to require the Corporation to file a prospectus under Securities Laws with respect to any securities
of the Corporation owned or to be owned by such person;

 

		(hhh)	the Common Shares of the Corporation are listed for trading on the TSX;

 

		(iii)	the Corporation is qualified under NI 44-101 to file a prospectus in the form of a short form prospectus,
and is qualified under NI 44-102 to file a short form prospectus that is a base shelf prospectus;

 

		(jjj)	the Corporation is a “reporting issuer” in each of the Qualifying Jurisdictions, is not in
default under any Securities Laws applicable in such jurisdictions and is in compliance, in all material respects, with the by-laws, rules,
policies and regulations of the TSX;

 

		(kkk)	there are no reports or information that in accordance with Securities Laws must be made publicly available
or filed that have not been made publicly available as required;

 

		(lll)	the Corporation is a “foreign private issuer” (as defined in Rule 405 under the 1933
Act);

 

		(mmm)	the filing by the Corporation of any signed Prospectus amendment or material change report required to
be filed under the Securities Laws will constitute a representation and warranty by the Corporation to the Agent that all the information
and statements contained therein are true and correct and that no material information has been omitted therefrom which is necessary to
make the statements contained therein not misleading in the light of the circumstances in which they were made;

 

		(nnn)	no order, ruling or determination having the effect of suspending the sale or ceasing the trading or distribution
of the Corporation’s Common Shares or any other securities of the Corporation has been issued by any regulatory authority and is
continuing in effect and no proceedings for that purpose have been instituted or are pending or, to the knowledge of the Corporation,
threatened, under any Securities Laws;

 

    Schedule C-11

     

    

 

		(ooo)	policies of insurance issued by insurers of recognized financial responsibility are maintained in respect
of the operations, properties and assets, employees, directors and officers of the Corporation Group in such amounts and covering such
risks as are prudent and customary in the businesses in which they are engaged, and such policies of insurance are maintained for the
benefit of the Corporation Group. All such policies of insurance are in full force and effect and no material default exists under such
policies of insurance as to the payment of premiums or otherwise under the terms of any such policy, there are no claims by the Corporation
Group under any such policy or instrument as to which any insurance Corporation is denying liability or defending under a reservation
of rights clause; and the Corporation Group has no knowledge that it will not be able to renew the existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue their business;

 

		(ppp)	no member of the Corporation Group has been denied any insurance coverage which it has sought or for which
it has applied;

 

		(qqq)	the minutes, resolutions and corporate records of the Corporation Group made available to Stikeman Elliott
LLP, counsel to the Agent, in connection with the Agents’ due diligence investigations are true and complete copies thereof and
contain copies of all proceedings of the shareholders, the board of directors and all committees of the board of directors of the Corporation
Group that have been minutes or resolved, there have been no other meetings, resolutions or proceedings of the shareholders, the board
of directors or any committee thereof from such date to the date of review of such corporate records, minutes and resolutions not reflected
in such minutes, resolutions and other corporate records, other than those which are not material in the context of the Corporation Group;

 

		(rrr)	except as contemplated hereby, there is no person acting at the request of any member of the Corporation
Group who is entitled to any brokerage or agency fee in connection with the sale of the Offered Shares contemplated herein;

 

		(sss)	no acquisition has been made by any member of the Corporation Group during its two most recently completed
fiscal years that would be a “significant acquisition” for the purposes of Securities Laws, and no proposed acquisition by
any member of the Corporation Group has progressed to a state where a reasonable person would believe that the likelihood of any member
of the Corporation Group completing the acquisition is high and that, if completed by any member of the Corporation Group at the date
of the Prospectus, would be a “significant acquisition” for the purposes of Securities Laws, in each case, that would require
the prescribed disclosure in the Prospectus pursuant to such laws;

 

		(ttt)	the Corporation has a reasonable basis for disclosing any forward-looking information contained in the
Prospectus and is not, as of the date hereof, required to update any such forward looking information pursuant to NI 51-102, and such
forward looking information contained in the Prospectus reflects the best currently available estimates and good faith judgments of the
management of the Corporation, as the case may be, as to the matters covered thereby;

 

    Schedule C-12

     

    

 

		(uuu)	except as disclosed in the Prospectus, no member of the Corporation Group has knowledge of any pending
or contemplated change to any law, regulation or position of a Governmental Body that would reasonably be expected to have a Material
Adverse Effect;

 

		(vvv)	any acquisition disclosed in the Prospectus was effected in compliance with all applicable Laws, and no
payments will accrue, be owing or be payable by, the Corporation or any Subsidiary to any person in connection with any such acquisition
except (i) as and to the extent disclosed in the Prospectus or the documents incorporated by reference therein, or (ii) for
any such payments as would not be material to the Corporation and the Subsidiaries (taken as a whole);

 

		(www)	the Corporation has not completed or entered into an agreement to complete a “significant acquisition”
nor is it proposing any “probable acquisitions” (as such terms are used in NI 44-101 and NI 51-102) that would require the
inclusion of any additional financial statements (in addition to the financial statements included in the Prospectus) or any pro forma
financial statements pursuant to the Securities Laws of the Qualifying Jurisdictions, and for which a Business Acquisition Report has
not been filed under NI 51-102; and (xxx) any Acquired Business Financial Statements incorporated by reference in the Prospectus
(i) have been prepared in accordance with IFRS (or other applicable permitted accounting principles) consistently applied throughout
the periods referred to therein, (ii) contain no misrepresentations, (iii) are in compliance with the applicable requirements
of Form 51102F4 – Business Acquisition Report and National Instrument 52-107 – Acceptable Accounting Principles
and Auditing Standards, and (iv) have been audited (in the case of the annual financial statements) or have been reviewed (in
the case of the interim financial statements) by independent public accountants or auditors within the meaning of applicable Securities
Laws.

 

    Schedule C-13

     

    

 

 

	Schedule D

to the Equity Distribution Agreement made as of June 3, 2021 among

Charlotte’s Web Holdings, Inc., Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.

 

FORM OF OFFICER’S CERTIFICATE

 

TO:       CANACCORD
GENUITY CORP. and BMO NESBITT BURNS INC.

 

This certificate is delivered to you today pursuant
to Section 9.3 of the Equity Distribution Agreement dated June 3, 2021 (the “Agreement”) among Charlotte’s
Web Holdings, Inc. (the “Corporation”), Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.

 

The undersigned,
being the duly appointed _______________________ and _________________________, respectively, of the Corporation, hereby certify, for
and on behalf of the Corporation and not in the respective personal capacities of the undersigned, that to the knowledge of the
undersigned:

 

		(a)	[except as set out in Exhibit A hereto,] the representations and warranties of the Corporation contained
in the Agreement are true and correct on and as of the date hereof (except to the extent such representations and warranties speak as
of a specific date or time in which case such as of that specific date or time only), and

 

		(b)	the Corporation has complied with all covenants and agreements and satisfied all conditions on its part
to be complied with or satisfied pursuant to the Agreement at or prior to the date hereof.

 

	DATED:	         	 
	 	 
	 	CHARLOTTE'S WEB HOLDINGS, INC.
	 	 
	 	 
	 	By:	                          
	 	Name:	 
	 	Title:	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	 	Title:	 

 

    Schedule D

     

    

 

Exhibit A to Officer’s Certificate

 

Exceptions to the representations and warranties
made by the Corporation in the Equity Distribution Agreement and in any certificates provided pursuant thereto:

 

	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 
	 

 

    Exhibit A to Officer's Certificate

     

    

 

	Schedule E

to the Equity Distribution Agreement made as of June 3, 2021 among|

Charlotte’s Web Holdings, Inc., Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.

 

MATTERS TO BE ADDRESSED IN LEGAL OPINIONS

 

		A.	MATTERS TO BE ADDRESSED IN OPINION OF THE CORPORATION’S
CANADIAN COUNSEL

 

Following are the matters to be addressed in the
opinion of DLA Piper (Canada) LLP, as Corporation’s Counsel in Canada, to be delivered pursuant to Section 9.2(a)(i) of
the Agreement:

 

		1.	as to the incorporation or formation, existence and good standing of the Corporation under the laws of
the Province of British Columbia;

 

		2.	that the attributes of the common shares, the proportionate voting shares, preferred shares and any other
securities of the Corporation conform in all material respects with the descriptions thereof in the Prospectus;

 

		3.	that the statements under the heading “Eligibility for Investment” in the Prospectus are accurate,
subject to the assumptions, qualifications, limitations and restrictions set out therein;

 

		4.	that, subject to the qualifications, assumptions, limitations and restrictions referred to under the heading
 “Tax Considerations” in the Prospectus, the statements made therein, to the extent that such statements summarize matters
of law or legal conclusions, fairly summarize the matters described therein in all material respects;

 

		5.	as to the adequacy of the corporate power and capacity of the Corporation to enter into this Agreement
and to carry out its obligations hereunder;

 

		6.	as to the authorized and issued capital of the Corporation;

 

		7.	that the Offered Shares have been duly and validly allotted and reserved for issuance, and upon receipt
by the Corporation of the consider therefor, will be issued as fully paid and non-assessable Common Shares;

 

		8.	that the Corporation has all requisite corporate power, capacity and authority under the laws of the Province
of British Columbia to carry on its businesses as presently carried on and to own its property and assets as described in the Prospectus
(including the documents incorporated by reference therein);

 

		9.	that all necessary corporate action has been taken by the Corporation to authorize (i) the execution
and delivery of this Agreement and the performance of its obligations hereunder, (ii) to offer, issue, sell and deliver the Offered
Shares at the Placement Time; (iii) the delivery, the execution and filing of the Prospectus and the Prospectus Supplement, under
Securities Laws in each of the Qualifying Jurisdictions;

 

		10.	the forms of definitive certificate representing the Common Shares have been duly approved and adopted
by the Corporation, comply with applicable laws of the Province of British Columbia and the constating documents of the Corporation;

 

		11.	that this Agreement has been duly authorized, executed and delivered by the Corporation and constitutes
a legal, valid and binding obligation of the Corporation, enforceable against the Corporation in accordance with its terms, subject to
customary qualifications for enforceability;

 

    Schedule E-1

     

    

 

		12.	that the execution and delivery of this Agreement and the performance by the Corporation of its obligations
hereunder and thereunder and the sale and delivery by the Corporation at the Placement Time of the Placement Shares do not and will not
contravene, constitute a default under, or result in any breach or violation of, (A) any term or provision of the constating documents
of the Corporation, or (B) any laws of the Province of British Columbia;

 

		13.	that the Transfer Agent has been duly appointed as the registrar and transfer agent for the Common Shares
and the proportionate voting shares of the Corporation;

 

		14.	that no authorization, consent or approval of, or filing, registration, permit, license, decree, qualification
or recording with, any Governmental Body in the Qualifying Jurisdictions is required for the performance by the Corporation of its obligations
under this Agreement, the consummation of the transactions contemplated by this Agreement, other than those that have been obtained or
made prior to the Placement Time;

 

		15.	that all necessary documents have been filed, all requisite proceedings have been taken, all legal requirements
have been fulfilled and all necessary approvals, permits, consents and authorizations of the Qualifying Authorities have been obtained,
in each case by the Corporation to qualify the Offered Shares for distribution and sale to the public in each of the Qualifying Jurisdictions
through investment dealers or brokers registered in such categories under the applicable laws of the Qualifying Jurisdictions and who
have complied with the relevant provisions of such applicable law;

 

		16.	relying solely on the conditional approval letter (or equivalent) from the TSX, that the Offered Shares
have been conditionally approved for listing on the TSX, subject only to standard listing conditions of the TSX; and

 

		17.	the compliance with the laws of the Province of Québec in connection with the purchase of Placement
Shares by purchasers in such province.

 

    Schedule E-2

     

    

 

	Schedule F

to the Equity Distribution Agreement made as of June 3, 2021 among

Charlotte’s Web Holdings, Inc., Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.

 

INDEMNIFICATION AND CONTRIBUTION

 

1.            INDEMNIFICATION

 

		1.1	Indemnification of Agents. The Corporation (the “Indemnifying Party”) agrees
to indemnify and hold harmless the Agents, their respective the directors, officers, partners, employees and agents of each of the Agents
and each Person, if any, who (i) controls either of the Agents within the meaning of the Act, or (ii) is controlled by or is
under common control with either of the Agents (collectively, the “Indemnified Parties” and individually, an “Indemnified
Party”), from and against any and all costs, charges, expenses, losses (other than losses of profit in connection with the distribution
of the Offered Shares), claims, actions, suits, proceedings, damages or liabilities, joint or several (including, if settled in accordance
with the terms hereof, the aggregate amount paid in reasonable settlement of any actions, suits, proceedings or claims) and the reasonable
fees and disbursements and taxes of their counsel that may be incurred in advising with respect to and/or defending any action, suit,
proceeding, investigation or claim that may be made or threatened against any Indemnified Party in enforcing this indemnity (collectively,
the “Claims”), whether under the provisions of any statute or otherwise, and which are caused or incurred by or arise,
directly or indirectly, by reason of:

 

		(a)	any untrue statement or alleged untrue statement of a material fact contained in the Prospectus, or in
any other material or document filed under any Securities Laws or delivered by or on behalf of the Corporation pursuant to this Agreement
or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or any misrepresentation or alleged misrepresentation contained therein;

 

		(b)	any breach by the Corporation of any of its covenants or agreements contained in this Agreement including
any default by the Corporation of its obligation to issue and deliver to the Agents any Placement Shares on the applicable Settlement
Date in accordance with the Settlement Procedures;

 

		(c)	any inaccuracy or misrepresentation in any representation or warranty of the Corporation set forth in
Schedule C of the Agreement or in any certificate of the Corporation delivered pursuant to this Agreement;

 

		(d)	the failure by the Corporation to comply with any applicable requirement of the Securities Laws in connection
with the transactions contemplated by this Agreement; or

 

		(e)	any order or any inquiry, investigation or proceeding instituted, threatened or announced by any Governmental
Body, based upon any untrue statement, omission or misrepresentation contained in the Prospectus, preventing or restricting the trading
in or the sale of distribution of the Offered Shares;

 

    Schedule F-1

     

    

 

provided, however, that the indemnity
in this Section 1.1 shall not apply to Claims arising out of or based, directly or indirectly, on any untrue statement, omission
or misrepresentation, or any alleged untrue statement, omission or misrepresentation, made in reliance upon and in conformity with written
information relating to the Agents and furnished in writing to the Corporation by the Agents expressly for use in the Prospectus, or in
any other material or document filed under any Securities Laws or delivered by or on behalf of the Agents pursuant to this Agreement,
or in the event and to the extent that a court of competent jurisdiction in a final judgment from which no appeal can be made or a regulatory
authority in a final ruling from which no appeal can be made shall determine that the Claim resulted from the fraud, willful misconduct
or gross negligence of the Indemnified Party claiming indemnity (provided that for greater certainty, an Indemnified Party’s failure
to conduct such reasonable investigation so as to provide reasonable grounds for a belief that the Prospectus contained no misrepresentation
(or, colloquially, to permit the Indemnified Party to sustain a “due diligence defence” under Securities Laws) shall not constitute
 “fraud”, “willful misconduct” or “gross negligence” for purposes of this Section 1.1 or otherwise
disentitle an Indemnified Party from claiming indemnification). This indemnity agreement shall be in addition to any liability that the
Corporation might otherwise have.

 

		1.2	Actions Against Parties; Notification. Each Indemnified Party shall give notice as promptly as
reasonably practicable to the Indemnifying Party of any action commenced against it in respect of which indemnity may be sought hereunder,
but failure to so notify the Indemnifying Party shall not relieve such Indemnifying Party from any liability hereunder to the extent it
is not materially prejudiced as a result thereof and in any event shall not relieve it from any liability which it may have otherwise
than on account of this indemnity agreement. If any such action is brought against any Indemnified Party and it notifies the Indemnifying
Party of its commencement, the Indemnifying Party shall be entitled to participate in and, to the extent that it elects by delivering
written notice to the Indemnified Party promptly after receiving notice of the commencement of the action from the Indemnified Party,
to assume the defense of the action, with counsel reasonably satisfactory to the Indemnified Party, and after notice from the Indemnifying
Party to the Indemnified Party of its election to assume the defense, the Indemnifying Party shall not be liable to the Indemnified Party
for any legal or other expenses except as provided below and except for the reasonable costs of investigation subsequently incurred by
the Indemnified Party in connection with the defense. The Indemnified Party shall have the right to employ its own counsel in any such
action, but the fees, expenses and other charges of such counsel shall be at the expense of such Indemnified Party unless (a) the
employment of counsel by the Indemnified Party has been authorized in writing by the Indemnifying Party, (b) the Indemnified Party
has reasonably concluded (based on advice of counsel to the Indemnified Party) that there may be legal defenses available to it or other
Indemnified Parties that are different from or in addition to those available to the Indemnifying Party, (c) a conflict or potential
conflict exists (based on written advice of counsel to the Indemnified Party) between the Indemnified Party and the Indemnifying Party
(in which case the Indemnifying Party shall not have the right to direct the defense of such action on behalf of the Indemnified Party),
or (d) the Indemnifying Party has not in fact employed counsel, reasonably satisfactory to the Indemnified Party, to assume the defense
of such action within a reasonable time after receiving notice of the commencement of the action, in each of which cases the reasonable
fees and expenses of counsel shall be at the expense of the Indemnifying Party. All such fees and expenses shall be reimbursed by the
Indemnifying Party promptly as they are incurred. In no event shall the Indemnifying Party be liable for fees and expenses of more than
one counsel (in addition to any local or special counsel) separate from their own counsel for all Indemnified Parties in connection with
any one action or separate but similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances.
Neither the Indemnifying Party nor any of the Indemnified Parties shall, without the prior written consent of the Indemnified Party and
the Indemnified Parties, such consent not to be unreasonably withheld, settle or compromise or consent to the entry of any judgment with
respect to any litigation, or any investigation or proceeding by any Governmental Body, commenced or threatened, or any claim whatsoever
in respect of which indemnification or contribution could be sought under this Section 1 or Section 2 of this Schedule F (whether
or not the Indemnified Parties are actual or potential parties thereto), provided that the Indemnifying Party may consent to any such
settlement, compromise or consent, without the consent of the Indemnified Parties, where such settlement, compromise or consent (y) includes
an unconditional release of each Indemnified Party from all liability arising out of such litigation, investigation, proceeding or claim
and (z) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any Indemnified
Party.

 

    Schedule F-2

     

    

 

		1.3	If any legal proceedings shall be instituted against the Corporation or if any regulatory authority or
stock exchange shall carry out an investigation of the Corporation and, in either case, any Indemnified Party is required to testify,
or respond to procedures designed to discover information, in connection with or by reason of the services performed by the Agents hereunder,
then the Indemnified Parties may employ their own legal counsel and the Corporation shall pay and reimburse the Indemnified Parties for
the reasonable fees, charges and disbursements (on a full indemnity basis) of such legal counsel, the other expenses reasonably incurred
by the Indemnified Parties in connection with such proceedings or investigation and a fee at the normal per diem rate for any director,
officer or employee of the Agents involved in the preparation for or attendance at such proceedings or investigation. However, the Corporation
shall not, in connection with any such proceeding or separate but substantially similar or related proceedings arising out of the same
general allegations or circumstances, be liable for the fees or expenses of more than one separate law firm in respect of all such Indemnified
Parties.

 

2.            CONTRIBUTION

 

		2.1	If the indemnification provided for in Section 1 above is for any reason unavailable to or insufficient
to hold harmless an Indemnified Party in respect of any Claims referred to therein, then each Indemnifying Party in respect of which indemnity
has been sought shall contribute to the aggregate amount of such Claims incurred by such Indemnified Party, as incurred, (a) in such
proportion as is appropriate to reflect the relative benefits received by the Corporation on the one hand and the Agents on the other
hand from the offering of the Offered Shares pursuant to this Agreement or (b) if the allocation provided by clause (i) is not
permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (a) above
but also the relative fault of the Corporation on the one hand and of the Agents on the other hand in connection with the statement, omission
or misrepresentation or the matters referred to in Section 1.1(b) and Section 1.1(c) above, which resulted in such
Claim, as well as any other relevant equitable considerations.

 

		2.2	The relative benefits received by the Corporation on the one hand and the Agents on the other hand in
connection with the offering of the Offered Shares pursuant to this Agreement shall be deemed to be in the same proportion as the total
net proceeds from the sale of the Offered Shares pursuant to this Agreement (before deducting expenses) received by the Corporation bear
to the total compensation (before deducting expenses) received by the Agents from the sale of the Offered Shares on behalf of the Corporation.

 

    Schedule F-3

     

    

 

		2.3	The relative fault of the Corporation on the one hand and the Agents on the other hand shall be determined
by reference to, among other things, whether any untrue or alleged untrue statement of a material fact, omission or alleged omission to
state a material fact or misrepresentation or alleged misrepresentation relates to information supplied or which ought to have been supplied
by the Corporation or by the Agents and the Parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement, omission or misrepresentation.

 

		2.4	The Corporation and the Agents agree that it would not be just and equitable if contribution pursuant
to this Section 2 were determined by pro rata allocation or by any other method of allocation which does not take account of the
equitable considerations referred to above in this Section 2. The aggregate amount of the Claims incurred by an Indemnified Party
and referred to above in this Section 2 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified
Party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any Governmental Body, commenced
or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement, omission or alleged omission or misrepresentation
or alleged misrepresentation. The rights to contribution provided in this Section 2 shall be in addition to and without prejudice
to any other right to contribution which the Agents may have.

 

		2.5	Notwithstanding the provision of this Section 2, the Agents shall not be required to contribute any
amount in excess of the Agents’ Fee received by it in respect of the sale of Offered Shares on behalf of the Corporation and no
party who has been determined by a court of competent jurisdiction in a final judgment to have engaged in any fraud, fraudulent misrepresentation
or gross negligence (provided that for greater certainty, the Agents’ failure to conduct such reasonable investigation so as to
provide reasonable grounds for a belief that the Prospectus contained no misrepresentation (or colloquially, to permit the Agents to sustain
a “due diligence defence” under Securities Laws) shall not constitute “gross negligence” for purposes of this
Section 2.5 or otherwise disentitle an Indemnified Party from claiming indemnification) shall be entitled to contribution by any
Person who has not been determined by a court of competent jurisdiction in a final judgment to have engaged in such fraud, fraudulent
misrepresentation or gross negligence.

 

		2.6	For purposes of this Section 2, each Person, if any, who controls the Agents and each affiliate of
the Agents, and any directors, officers, partners, employees or agents of the Agents, shall have the same rights to contribution as the
Agents, subject in each case to the provisions of this Section 2.

 

		2.7	Any party entitled to contribution, promptly after receipt of notice of commencement of any action against
such party in respect of which a claim for contribution may be made under this Section 2, will notify any such party or parties from
whom contribution may be sought, but the omission to so notify will not relieve that party or parties from who contribution may be sought
from any other obligation it or they may have under this Section 2 except to the extent that the failure to so notify such other
party or parties materially prejudiced the substantive rights or defenses of the party or parties from whom contribution is sought. Except
for a settlement entered into pursuant to Section 1.3 above, no party will be liable for contribution with respect to any action
or claim settled without its written consent if such consent is required pursuant to Section 1.3 above.

 

    Schedule F-4

     

    

 

3.            THIRD
PARTY BENEFICIARIES

 

		3.1	It is the intention of the parties hereto that the directors, officers, partners, employees and agents
of the Agents and the affiliates of each of the Agents (the “Agent Beneficiaries”) shall be entitled to the benefit
of the covenants of the Corporation under Section 1 or Section 2 of this Schedule F, and for this purpose the Corporation hereby:
(a) appoint the Agents, and the Agents hereby accept such appointment, as trustee of the covenants of the Corporation under Section 1
or Section 2 for the benefit of the Agent Beneficiaries; and (b) acknowledges and agrees that the Agents shall be entitled to
enforce such covenants on behalf of the Agent Beneficiaries notwithstanding that none of the Agent Beneficiaries is a direct party to
this Agreement.

 

    Schedule F-5

     

    

 

	Schedule G

to the Equity Distribution Agreement made as of June 3, 2021 among

Charlotte’s Web Holdings, Inc., Canaccord Genuity Corp. and BMO Nesbitt Burns Inc.

 

MATERIAL SUBSIDIARIES

 

	Name	Jurisdiction of Organization
	Charlotte’s Web, Inc.	Delaware

 

    Schedule G

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