Document:

Exhibit 10.1

CLEVER
LEAVES HOLDINGS INC.

 

$50,000,000

 

EQUITY DISTRIBUTION AGREEMENT

 

January 14, 2022

 

Canaccord Genuity LLC

99 High Street, Suite 1200

Boston, Massachusetts 02110

 

Ladies and Gentlemen:

 

Clever Leaves Holdings Inc.,
a British Columbia corporation (the “Company”), confirms its agreement (this “Agreement”) with Canaccord
Genuity LLC (“Canaccord”), as follows: 

 

1. Issuance
and Sale of Shares.

 

(a) The
Company agrees that, from time to time during the term of this Agreement, on the terms and subject to the conditions set forth herein,
it will issue and sell through Canaccord, acting as sales agent, the Company’s common shares (the “Common Shares”)
having an aggregate offering price of up to $50,000,000 (the “Shares”). The Shares will be sold on the terms set forth
herein at such times and in such amounts as the Company and Canaccord shall agree from time to time. The issuance and sale of the Shares
through Canaccord will be effected pursuant to the Registration Statement (as defined below) filed by the Company, after it is declared
effective by the Securities and Exchange Commission (the “Commission”).

 

(b) Notwithstanding
any other provision of this Agreement, the Company and Canaccord agree that the Company shall not deliver a Placement Notice to Canaccord,
and Canaccord shall not be obligated to place any Shares, during any period in which the Company is in possession of material non-public
information.

 

2. Placements.

 

(a) Placement
Notice. Each time that the Company wishes to issue and sell Shares hereunder (each, a “Placement”), it will notify
Canaccord by e-mail notice (or other method mutually agreed to in writing by the parties) containing the parameters within which it desires
to sell the Shares, which shall at a minimum include the number of Shares (“Placement Shares”) to be issued, the time
period during which sales are requested to be made, any limitation on the number of Shares that may be sold in any one day and any minimum
price below which sales may not be made (a “Placement Notice”), a form of which shall be mutually agreed upon by the
Company and Canaccord. The Placement Notice shall originate from any of the individuals (each an “Authorized Representative”)
from the Company set forth on Schedule 1 (with a copy to each of the other individuals from the Company listed on such
schedule), and shall be addressed to each of the individuals from Canaccord set forth on Schedule 1 attached hereto,
as such Schedule 1 may be amended from time to time. The Placement Notice shall be effective upon confirmation by Canaccord
unless and until (i) Canaccord declines to accept the terms contained therein for any reason, in its sole discretion, in accordance with
the notice requirements set forth in Section 4, (ii) the entire amount of the Placement Shares have been sold, (iii) the Company
suspends or terminates the Placement Notice in accordance with the notice requirements set forth in Section 4, (iv) the Company
issues a subsequent Placement Notice with parameters superseding those on the earlier dated Placement Notice, or (v) the Agreement has
been terminated under the provisions of Section 12.

 

     

     

    

 

(b) Placement
Fee. The amount of compensation to be paid by the Company to Canaccord with respect to each Placement (in addition to any expense
reimbursement pursuant to Section 7(g)(ii)) shall be set forth in the Placement Notice and be up to 3.0% of gross proceeds
from each Placement.

 

(c) No
Obligation. It is expressly acknowledged and agreed that neither the Company nor Canaccord will have any obligation whatsoever with
respect to a Placement or any Placement Shares unless and until the Company delivers a Placement Notice to Canaccord, and then only upon
the terms specified therein and herein. It is also expressly acknowledged that Canaccord will be under no obligation to purchase Shares
on a principal basis. In the event of a conflict between the terms of this Agreement and the terms of a Placement Notice, the terms of
the Placement Notice control.

 

3. Sale
of Placement Shares by Canaccord. Subject to the terms and conditions of this Agreement, upon the Company’s issuance of a Placement
Notice, and unless the sale of the Placement Shares described therein has been declined, suspended, or otherwise terminated in accordance
with the terms of this Agreement, Canaccord will use its commercially reasonable efforts consistent with its normal trading and sales
practices to sell on behalf of the Company and as agent, such Placement Shares up to the amount specified during the time period specified,
and otherwise in accordance with the terms of such Placement Notice. The Company acknowledges that Canaccord will conduct the sale of
Placement Shares in compliance with applicable law, rules and regulations including, without limitation, all applicable United States
state and federal securities laws, including the United States Securities Act of 1933, as amended (the “Securities Act”),
the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (including Regulation M thereunder) and the rules
of the Nasdaq Capital Market (the “Principal Trading Market”) and that such compliance may include a delay in commencement
of sales efforts after receipt of a Placement Notice. Canaccord will provide written confirmation to the Company no later than the opening
of the Trading Day next following the Trading Day on which they have made sales of Placement Shares hereunder setting forth the number
of Placement Shares sold on such day, the compensation payable by the Company to Canaccord with respect to such sales, and the Net Proceeds
(as defined below) payable to the Company. Subject to the terms and conditions of the Placement Notice, Canaccord may sell Placement Shares
by any method permitted by law deemed to be an “at the market offering” under Rule 415 of the Securities Act, including without
limitation sales made directly on or through the Principal Trading Market, on any other existing trading market for the Common Shares,
sales to or through a market maker other than on an exchange or in negotiated transactions at market prices prevailing at the time of
sale or at prices related to such prevailing market prices. During the term of this Agreement, and notwithstanding anything to the contrary
herein, Canaccord agrees that in no event will it or any of its affiliates engage in any market making, bidding, stabilization or other
trading activity with regard to the Common Shares if such activity would be prohibited under Regulation M or other anti-manipulation rules
under the Securities Act. Notwithstanding anything to the contrary set forth in this Agreement or a Placement Notice, the Company acknowledges
and agrees that (i) there can be no assurance that Canaccord will be successful in selling any Placement Shares or as to the price at
which any Placement Shares are sold, if at all, and (ii) Canaccord will incur no liability or obligation to the Company or any other person
or entity if they do not sell Placement Shares for any reason other than a failure by Canaccord to use its commercially reasonable efforts
consistent with its normal trading and sales practices to sell on behalf of the Company and as agent such Placement Shares as provided
under this Section 3. For the purposes hereof, “Trading Day” means any day on which the Principal Trading
Market is open for trading.

 

4. Suspension
of Sales. The Company or Canaccord may, upon notice to the other party in writing, by telephone (confirmed by e-mail) or by e-mail
notice (or other method mutually agreed to in writing by the parties), suspend any sale of Placement Shares; provided, however,
that such suspension shall not affect or impair either party’s obligations with respect to any Placement Shares sold hereunder prior
to the receipt of such notice. The Company and Canaccord agree that no such notice shall be effective against the other party unless it
is made to one of the individuals named on Schedule 1 hereto, as such Schedule may be amended from time to time.

 

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5. Settlement.

 

(a) Settlement
of Placement Shares. Unless otherwise specified in the applicable Placement Notice, settlement for sales of Placement Shares will
occur on the second (2nd) Business Day (or such earlier day as is agreed by the parties to be industry practice for regular-way trading)
following the date on which such sales are made (each a “Settlement Date”). The amount of proceeds to be delivered
to the Company on a Settlement Date against the receipt of the Placement Shares sold (“Net Proceeds”) will be equal
to the aggregate sales price at which such Placement Shares were sold, after deduction for (i) the commission or other compensation for
such sales payable by the Company to Canaccord, as the case may be, pursuant to Section 2 hereof, as the case may be,
(ii) any other amounts due and payable by the Company to Canaccord hereunder pursuant to Section 7(g) hereof, and (iii)
any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales.

 

(b) Delivery
of Shares. On each Settlement Date, the Company will, or will cause its transfer agent to, electronically transfer the Placement Shares
being sold by crediting Canaccord’s accounts or its designee’s account at The Depository Trust Company through its Deposit
Withdrawal Agent Commission System or by such other means of delivery as may be mutually agreed upon by the parties hereto and, upon receipt
of such Placement Shares, which in all cases shall be freely tradeable, transferable, registered shares in good deliverable form, Canaccord
will, on each Settlement Date, deliver the related Net Proceeds in same day funds delivered to an account designated by the Company prior
to the Settlement Date. If the Company defaults in its obligation to deliver Placement Shares on a Settlement Date, the Company agrees
that in addition to and in no way limiting the rights and obligations set forth in Section 10 hereto, it will (i) hold
Canaccord harmless against any loss, claim, damage, or expense (including legal fees and expenses), as incurred, arising out of or in
connection with such default by the Company and (ii) pay to Canaccord any commission, discount, or other compensation to which it would
otherwise have been entitled absent such default.

 

6. Representations
and Warranties of the Company. The Company represents and warrants to, and agrees with, Canaccord that, as of the date of this Agreement:

 

(a) Registration
Statement and Prospectus. The Common Shares are registered pursuant to Section 12(b) of the Exchange Act, and the Company has filed
all reports, schedules, forms, statements and other documents required to be filed by it with the Commission (the “Commission
Documents”) since the Company has been subject to the requirements of Section 12 of the Exchange Act, and all of such filings
required to be filed within the last 12 months have been made on a timely basis. The Common Shares are currently quoted on the Principal
Trading Market under the trading symbol “CLVR”. The Company and the transactions contemplated hereby meet the requirements
for use of Form S-3 under the Securities Act and the rules and regulations thereunder (“Rules and Regulations”), including
but not limited to the transaction requirements for an offering made by the issuer set forth in Instruction I.B.1 to Form S-3. The Company
has prepared and filed, or will prepare and file, with the Commission a registration statement on Form S-3 with respect to the Shares
to be offered and sold by the Company pursuant to this Agreement. Such registration statement, at any given time, including the amendments
thereto at such time, the exhibits and any schedules thereto at such time, the documents incorporated by reference therein pursuant to
Item 12 of Form S-3 under the Securities Act at such time and the documents otherwise deemed to be a part thereof or included therein
by the rules and regulations under the Securities Act, is herein called the “Registration Statement.” The Registration
Statement, including the base prospectus contained therein (the “Base Prospectus”) was prepared by the Company in conformity,
in all material respects, with the requirements of the Securities Act and all applicable Rules and Regulations. One or more prospectus
supplements relating to the Shares (the “Prospectus Supplements,” and together with the Base Prospectus and any amendment
thereto and all documents incorporated therein by reference, the “Prospectus”) have been or will be prepared by the
Company in conformity, in all material respects, with the requirements of the Securities Act and all applicable Rules and Regulations
and have been or will be filed with the Commission in the manner and time frame required by the Securities Act and the Rules and Regulations.
Any amendment or supplement to the Registration Statement or Prospectus required by this Agreement will be so prepared and filed by the
Company and, as applicable, the Company will use commercially reasonable efforts to cause it to become effective as soon as reasonably
practicable. No stop order suspending the effectiveness of the Registration Statement has been issued, and no proceeding for that purpose
has been instituted or, to the knowledge of the Company, threatened by the Commission. No order preventing or suspending the use of the
Base Prospectus, the Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus (as defined herein) has been issued by
the Commission. Copies of all filings made by the Company under the Securities Act and all Commission Documents that were filed with the
Commission have either been delivered to Canaccord or are available to Canaccord on the Commission’s Electronic Data Gathering,
Analysis, and Retrieval system (“EDGAR”). Any reference herein to the Registration Statement, the Prospectus, or any
amendment or supplement thereto shall be deemed to refer to and include the documents incorporated (or deemed to be incorporated) by reference
therein pursuant to Item 12 of Form S-3 under the Securities Act, and any reference herein to the terms “amend,” “amendment”
or “supplement” with respect to the Registration Statement or Prospectus shall be deemed to refer to and include the filing
after the execution hereof of any document with the Commission deemed to be incorporated by reference therein. For the purposes of this
Agreement, the “Applicable Time” means, with respect to any Shares, the time of sale of such Shares pursuant to this
Agreement.

 

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(b) No
Misstatement or Omission. The Registration Statement, when such part became or becomes effective, at any deemed effective date pursuant
to Rule 430B(f)(2) on the date of filing thereof with the Commission and the Prospectus, on the date of filing thereof with the Commission
and at each Applicable Time and Settlement Date, conformed or will conform in all material respects with the requirements of the Securities
Act and the Rules and Regulations; each part of the Registration Statement, when such part became or becomes effective, did not or will
not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make
the statements therein not misleading; and the Prospectus, on the date of filing thereof with the Commission, and the Prospectus and any
applicable Issuer Free Writing Prospectus(es) issued at or prior to such Applicable Time, taken together (collectively, and with respect
to any Shares, together with the public offering price of such Shares, the “Disclosure Package”) and at each Applicable
Time and Settlement Date, did not or will not include an untrue statement of a material fact or omit to state a material fact necessary
required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading; except that the foregoing shall not apply to statements or omissions in any such document made in reliance on information
furnished in writing to the Company by Canaccord expressly stating that such information is intended for use in the Registration Statement,
the Prospectus, or any amendment or supplement thereto, or in any Issuer Free Writing Prospectus(es). The representations and warranties
set forth in this subsection (b) do not apply to statements in or omissions from the Registration Statement, the Prospectus, or the Disclosure
Package, made in reliance upon and in conformity with information relating to Canaccord furnished to the Company by Canaccord for use
therein, it being understood and agreed that the only such information furnished by Canaccord to the Company consists of the information
described in Section 10(b) below.

 

(c) Conformity
with Securities Act and Exchange Act. The documents incorporated by reference in the Registration Statement or the Prospectus, or
any amendment or supplement thereto, when they became effective under the Securities Act or were filed with the Commission under the Exchange
Act, as the case may be, conformed in all material respects with the requirements of the Securities Act or the Exchange Act, as applicable,
and the rules and regulations of the Commission thereunder, and none of such documents contained an untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; and any further documents so filed and incorporated by reference in the Registration Statement
or the Prospectus or any further amendment or supplement thereto, when such documents become effective or are filed with the Commission,
as the case may be, will conform to the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations
of the Commission thereunder and will not contain an untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading;
provided however, that this representation and warranty shall not apply to any statements or omissions (a) that have been corrected in
a filing that has been incorporated by reference in the Prospectus prior to the relevant Applicable Time or (b) made in reliance on information
furnished in writing to the Company by Canaccord expressly stating that such information is intended for use in any such document.

 

(d) Financial
Information. The financial statements (including the related notes thereto and the supporting schedules, if any) of the Company and
its consolidated subsidiaries (at the respective times such financial statements were prepared) (the Company’s consolidated subsidiaries
as of the date of this Agreement, being those listed on Schedule 2 hereto, the “Subsidiaries”), set forth or incorporated
by reference in the Registration Statement, Prospectus and Disclosure Package, have been and will be prepared in accordance with Regulation
S-X under the Securities Act, in all material respects, and with United States generally accepted accounting principles (“US
GAAP”) consistently applied at the times and during the periods covered thereby (except (i) as may be otherwise indicated in
such financial statements or the notes thereto, and (ii) in the case of unaudited interim statements, subject to normal year-end audit
adjustments and the exclusion or condensing of certain footnotes), and fairly present in all material respects and will fairly present
in all material respects the financial position of the Company as of the dates indicated and the results of its operations and the changes
in its cash flows for the periods specified (subject, in the case of unaudited statements, to normal year-end adjustments); and the other
financial information included or incorporated by reference in the Registration Statement, the Prospectus and the Disclosure Package has
been derived from the accounting records of the Company and its Subsidiaries and presents fairly in all material respects the information
shown thereby. The Company does not have any material liabilities or obligations, direct or contingent, which are not disclosed in the
Registration Statement, Prospectus and Disclosure Package, as of the date of filing of those documents. Except as included therein, no
historical or pro forma financial statements or supporting schedules are required to be included in the Registration Statement, the Disclosure
Package or the Prospectus under the Securities Act or the Rules and Regulations.

 

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(e) [Reserved].

 

(f) Emerging
Growth Company Status. As of the date hereof, the Company is an “emerging growth company” as defined in Section 2(a) of
the Securities Act (an “Emerging Growth Company”).

 

(g) Organization.
The Company is duly organized and validly existing under the laws of the province of British Columbia and has all requisite power and
authority to carry on its business as is currently being conducted as described in, or incorporated by reference into, the Prospectus,
and to own, lease and operate its properties. The Company is duly qualified as a foreign entity to transact business and is in good standing
in each jurisdiction in which such qualification is required, whether by reason of the ownership or leasing of property or the conduct
of business, except where the failure, individually or in the aggregate, to be so qualified or in good standing or have such power or
authority would not be reasonably expected to, individually or in the aggregate, have a material adverse effect on (i) the assets, properties,
condition, financial or otherwise or in the results of operations, business affairs or business prospects of the Company and its Subsidiaries
taken as a whole, (ii) the transactions contemplated hereby or (iii) the ability of the Company to perform its obligations under this
Agreement (collectively, a “Material Adverse Effect”).

 

(h) Encumbrances.
Except as otherwise described in, or incorporated by reference into, the Registration Statement, Prospectus and Disclosure Package, each
of the Company and its Subsidiaries has (i) good and marketable title to all of the properties and assets owned by it that are material
to the business of the Company and the Subsidiaries taken as a whole, free and clear of all material liens, charges, claims, security
interests or encumbrances (collectively, “Encumbrances”), except (i) those that do not materially interfere with the
use made and proposed to be made of such property by the Company and the Subsidiaries or (ii) those that would not reasonably be expected,
individually or in the aggregate, to have a Material Adverse Effect, (iii) as relates to possession under all material leases to which
it is party as lessee, and (iv) such other Encumbrances executed by the Company and its Subsidiaries in the ordinary course of business
or as or may be required to conduct their business (including without limitation, under the existing offices and lease agreements of the
Company and its Subsidiaries, and other Encumbrances executed with commercial banks in order to secure ongoing payments under credit cards
and/or corporate cards). All material leases to which the Company or its Subsidiaries is a party are valid and binding and no material
default has occurred and is continuing thereunder, and no event or circumstance that with the passage of time or giving of notice, or
both, would constitute such a material default has occurred and is continuing, and, to the knowledge of the Company, no material defaults
by the counterparties exist under any such leases or contracts.

 

(i) No
Improper Practices. (i) Neither the Company nor the Subsidiaries, nor to the knowledge of the Company, any director, officer, agent,
employee or other person associated with or acting on behalf of the Company or the Subsidiaries, has, in the past five years, used any
corporate funds of the Company for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity;
made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds of Company,
violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or made any bribe, rebate, payoff, influence
payment, kickback or other unlawful payment; (ii) no relationship, direct or indirect, exists between or among the Company or, to the
knowledge of the Company, the Subsidiaries, on the one hand, and the directors, officers and shareholders of the Company or, to the knowledge
of the Company, the Subsidiaries, on the other hand, that is required by the Securities Act to be described in, or incorporated by reference
into, the Registration Statement and the Prospectus that is not so described; (iii) no relationship, direct or indirect, exists between
or among the Company or the Subsidiaries or any of their controlled affiliates, on the one hand, and the directors, officers, shareholders
or directors of the Company or, to the knowledge of the Company, the Subsidiaries, on the other hand, that is required by the rules of
the Financial Industry Regulatory Authority, Inc. (“FINRA”) to be described in, or incorporated by reference into,
the Registration Statement and the Prospectus that is not so described; and (iv) except as otherwise described in, or incorporated by
reference into, the Registration Statement, the Disclosure Package or the Prospectus, there are no material outstanding loans or advances
or material guarantees of indebtedness by the Company or, to the knowledge of the Company, the Subsidiaries to or for the benefit of any
of their respective officers or directors or any of the members of the families of any of them.

 

(j) Investment
Company Act. The Company is not now and, after giving effect to the offering and sale of the Shares, will not be required to register
as an “investment company” or an entity “controlled” by an “investment company,” as such terms are
defined in the Investment Company Act of 1940, as amended (the “Investment Company Act”).

 

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(k) Capitalization.
The Company has an authorized capitalization as set forth in the Registration Statement, the Disclosure Package and the Prospectus
as of the date or dates set forth therein. All of the issued shares of share capital of the Company have been duly and validly
authorized and issued and are fully paid and non-assessable and have been issued in compliance with the Business Corporations
Act (British Columbia); and all of the issued shares of share capital or other equity interests of the Subsidiaries have been
duly and validly authorized and issued and are fully paid and non-assessable or issued in accordance with the terms of such
securities of the Company (except, in the case of any foreign subsidiary, for directors’ qualifying shares) and the shares of
such Subsidiaries are owned directly or indirectly by the Company and are held free and clear of all Encumbrances, other than the pledge and security interest of the share capital of certain subsidiaries given to the Company’s secured convertible
noteholder. None of the
outstanding Common Shares were issued in violation of any preemptive rights, rights of first refusal or other similar rights to
subscribe for or purchase securities of the Company. Except as may be otherwise described in, or incorporated by reference into, the
Registration Statement, the Disclosure Package and the Prospectus, and except with respect to equity awards (the “Equity
Incentive Securities”) issued under the Company’s equity incentive plans (the “Company Equity Incentive
Plans”), there are no outstanding options, warrants, preemptive rights, rights of first refusal or other rights to
purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any share capital of the Company.

 

(l) Equity
Incentive Plans. With respect to the Equity Incentive Securities (i) each grant of an Equity Incentive Security was duly authorized
by the Company in accordance with the applicable laws by all necessary corporate action, including, as applicable, approval by the board
of directors of the Company (or a duly constituted and authorized committee thereof) and any required shareholder approval by the necessary
number of votes or written consents, and the award agreement governing such grant (if any) was duly executed and delivered by each party
thereto, (ii) each such grant was made in accordance with the terms of the Company Equity Incentive Plans and all other applicable laws
and regulatory rules or requirements, except where the failure to comply with such laws, regulatory rules or requirements would not be
reasonably expected to result in a Material Adverse Effect, and (iii) each such grant was properly accounted for in accordance with US
GAAP in the financial statements (including the related notes) of the Company included in the Registration Statement, the Disclosure Package
and the Prospectus, to the extent required under US GAAP to be accounted for in such financial statements.

 

(m) The
Shares. The Shares have been duly authorized and, when issued, delivered and paid for pursuant to this Agreement, will be validly
issued, fully paid and non-assessable, free and clear of all Encumbrances and will be issued in compliance with the Business Corporations
Act (British Columbia); the share capital of the Company, including the Common Shares, conforms in all material respects to the description
thereof contained in the Registration Statement and the Common Shares, including the Placement Shares, will conform to the description
thereof contained in the Prospectus as amended or supplemented. Neither the shareholders of the Company, nor any other person or entity
have any preemptive rights or rights of first refusal with respect to the Placement Shares, or other rights to purchase or receive any
of the Placement Shares, and no person has the right, contractual or otherwise, to cause the Company to issue to it, or register pursuant
to the Securities Act, any shares of share capital or other securities of the Company upon the issuance or sale of the Placement Shares,
in each case except for rights that have been validly waived.

 

(n) No Material
Changes. Since the date of the most recent financial statements of the Company set forth in, or incorporated by reference into,
the Registration Statement, the Prospectus and the Disclosure Package, (i) neither the Company nor any of the Subsidiaries has
sustained any material loss or interference with the business of the Company and its Subsidiaries, taken as a whole, including
without limitation, from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or
court or governmental action, order or decree, except in each case as otherwise disclosed in, or incorporated by reference into, the
Registration Statement, Prospectus and Disclosure Package; (ii) there have been no transactions entered into by the Company or the
Subsidiaries which are material to the Company and its Subsidiaries, considered as a whole, except as otherwise disclosed in, or
incorporated by reference into, the Registration Statement, Prospectus and Disclosure Package; (iii) there has not been any material
change, on a consolidated basis, in the authorized share capital of the Company and its Subsidiaries (other than the issuance of
Common Shares upon the exercise of stock options and warrants or upon conversion of convertible securities described as outstanding
in, and the grant of options and awards under existing equity incentive plans described in, or incorporated by reference into, the
Registration Statement, Prospectus and Disclosure Package), any material increase in the short-term debt or long-term debt of the
Company and its Subsidiaries, on a consolidated basis, or any dividend or distribution of any kind declared, set aside for payment,
paid or made by the Company on any class of share capital, or any Material Adverse Effect, or any development reasonably likely to
cause or result in a Material Adverse Effect.

 

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(o) Legal
Proceedings.

 

(i) Except
as set forth in, or incorporated by reference into, the Registration Statement, Prospectus and Disclosure Package, there is no legal,
governmental or administrative proceeding, investigation, action, suit pending, or, to the knowledge of the Company, threatened against
or affecting the Company or its Subsidiaries or any of their respective properties or to which the Company or its Subsidiaries is or may
be a party or to which any property of the Company or its Subsidiaries is or may be the subject, or against any officer or director of
the Company or the Subsidiaries in connection with such person’s employment therewith that, if determined adversely to the Company
or the Subsidiaries or such officer or director, would individually or in the aggregate reasonably be expected to have, a Material Adverse
Effect. Neither the Company nor its Subsidiaries is a party to or subject to the provisions of, any order, writ, injunction, judgment
or decree of any court or government agency or instrumentality which would reasonably be expected to have a Material Adverse Effect, except
for such order, writ, injunction, judgment or decree applicable to all companies in the similar industry or business of the Company and
its Subsidiaries or applicable to all companies in the jurisdictions in which the Company operates.

 

(ii) There
are no legal, governmental or administrative proceedings, actions, suits or documents, or, to the knowledge of the Company, investigations,
of the Company or its Subsidiaries that are required to be described in, or incorporated by reference into, or filed as exhibits to the
Registration Statement or any of the documents incorporated by reference therein by the Securities Act or the Exchange Act or by the rules
and regulations of the Commission thereunder that have not been so described or filed as required by the Securities Act or the Exchange
Act and the Rules and Regulations under either of them.

 

(p) Authorization;
Enforceability.

 

(i) The
Company has all requisite corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder,
to provide the representations, warranties and indemnities under this Agreement and all necessary action has been duly and validly taken
by the Company to authorize the execution, delivery and performance of this Agreement. This Agreement has been duly and validly authorized,
executed and delivered by the Company and constitutes the legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its terms, except that rights to indemnification and contribution hereunder may be limited by applicable law
and except that enforcement hereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting
the enforcement of creditors’ rights generally and by general equitable principles (whether applied in a proceeding in law or equity).

 

(ii) Executing
and delivering this Agreement and the issuance and sale of the Shares and the compliance by the Company with all of the provisions of
this Agreement and the consummation of the transactions contemplated herein will not result in (1) a breach or violation of any of the
terms and provisions of, or constitute a default under, any obligation, agreement, covenant or condition contained in any indenture, mortgage,
deed of trust, loan or credit agreement or other agreement or instrument to which the Company or its Subsidiaries is a party or by which
either of them is bound or to which any of the property of the Company or its Subsidiaries is subject, (2) a violation of the Company’s
articles of incorporation, (3) a violation of any statute or any order, rule or regulation of any court or governmental agency or body
having jurisdiction over the Company or its Subsidiaries or any of their properties, or (4) the creation of any material Encumbrance upon
any assets of the Company or its Subsidiaries or the triggering, solely as a result of the Company’s execution and delivery of this
Agreement, of any preemptive or rights of first refusal or first offer, or any similar rights (whether pursuant to a “poison pill”
provision or otherwise), on the part of holders of the Company’s securities or any other person, except, in the cases of (1), (3)
and (4) above, for any such conflict, breach, violation, creation or default that would not, individually or in the aggregate, reasonably
be expected to have a Material Adverse Effect. Neither the Company nor its Subsidiaries or controlled affiliates, nor any person acting
on its or their behalf, has issued or sold any Common Shares or securities or instruments convertible into, exchangeable for and/or otherwise
entitling the holder thereof to acquire Common Shares which would be integrated with the offer and sale of the Shares hereunder.

 

    7

     

    

 

(q) Enforceability
of Agreements. All agreements between the Company and third parties expressly referenced in the Prospectus are legal, valid and binding
obligations of the Company enforceable, in all material respects, in accordance with their respective terms, except to the extent that
(i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights
generally and by general equitable principles and (ii) the indemnification provisions of certain agreements may be limited be federal
or state securities laws or public policy considerations in respect thereof and except for any unenforceability that, individually or
in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

(r) No
Violations or Default. The Company and each of its “significant subsidiaries” within the meaning of Rule 1-02(w) of Regulation
S-X is not (A) in violation of its articles of incorporation or by-laws or other applicable governing documents, (B) in default in the
performance or observance of any material obligation, agreement, covenant or condition contained in any contract, indenture, mortgage,
deed of trust, loan or credit agreement, note, lease or other agreement or instrument to which the Company or any of its Subsidiaries
is a party or by which it may be bound or to which any of the properties or assets of the Company or any of its Subsidiaries is subject
(collectively, “Agreements and Instruments”), except for such defaults that would not reasonably be expected to, singly
or in the aggregate, result in a Material Adverse Effect, or (C) in violation of any law, statute, rule, regulation, judgment, order,
writ or decree of any arbitrator, court, governmental body, regulatory body, administrative agency or other authority, body or agency
having jurisdiction over the Company or any of its Subsidiaries or any of their respective properties, assets or operations (each, a “Governmental
Entity”), except for such violations that would not reasonably be expected to, singly or in the aggregate, result in a Material
Adverse Effect. The execution, delivery and performance of this Agreement and the consummation of the transactions contemplated herein
and in the Registration Statement, the Disclosure Package and the Prospectus and compliance by the Company with its obligations hereunder
have been duly authorized by all necessary corporate action and do not and will not, whether with or without the giving of notice or passage
of time or both, conflict with or constitute a breach of, or default under, or result in the creation or imposition of any lien, charge
or encumbrance upon any properties or assets of the Company or any of its Subsidiaries pursuant to, the Agreements and Instruments (except
for such conflicts, breaches, defaults or Encumbrances that would not reasonably be expected to, singly or in the aggregate, result in
a Material Adverse Effect), nor will such action result in any violation of (i) the provisions of the articles of incorporation or by-laws
or similar organization document of the Company or any of its Subsidiaries or (ii) any law, statute, rule, regulation, judgment, order,
writ or decree of any Governmental Entity, except with respect to clause (ii), such violations as would not reasonably be expected to,
singly or in the aggregate, result in a Material Adverse Effect.

 

(s) Compliance
with Laws. The Company and its Subsidiaries have not violated and are in compliance in all material respects with all laws, statutes,
ordinances, regulations, rules and orders of each foreign, federal, state or local government and any other governmental department or
agency having jurisdiction over the Company and the Subsidiaries, and any judgment, decision, decree or order of any court or governmental
agency, department or authority having jurisdiction over the Company and the Subsidiaries, except for such violations or noncompliance
which, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

 

(t) Consents
and Permits. The Company and each of its Subsidiaries possesses such permits, licenses, certificates, approvals, clearances, consents
and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate Governmental Entities necessary
to conduct the business now operated by them, except where the failure to possess would not reasonably be expected to, singly or in the
aggregate, result in a Material Adverse Effect. The Company and each of its Subsidiaries is in compliance with the terms and conditions
of all Governmental Licenses and, to the Company’s knowledge, no event has occurred which allows, or after notice or lapse of time
would allow, revocation or termination thereof or result in any other material impairment of the rights of the holder of any Government
License, except where the failure so to comply would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse
Effect. All of the material Governmental Licenses are valid and in full force and effect. Neither the Company nor any of its Subsidiaries
(a) has received written notice of any ongoing claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other
action from any U.S. or non-U.S. Governmental Entity or third party alleging that any product, operation or activity is in violation of
any Governmental Licenses and has no knowledge that any such Governmental Entity or third party is considering any such claim, litigation,
arbitration, action, suit, investigation or proceeding; (b) has received written notice that any Governmental Entity has taken, is taking
or intends to take regulatory action, and has no knowledge that any other Governmental Entity is considering such action; (c) has, either
voluntarily or involuntarily, initiated, conducted, or issued or caused to be initiated, conducted or issued, any recall, safety alert,
or similar notice or action relating to any alleged product defect; and (d) is a party to any corporate integrity agreement, deferred
prosecution agreement, monitoring agreement, consent decree, settlement order, or similar agreements, or has any reporting obligations
pursuant to any such agreement, plan or correction or other remedial measure entered into with any Governmental Entity.

 

    8

     

    

 

(u) Absence
of Further Requirements. No filing with, or authorization, approval, consent, license, order, registration, qualification or decree
of, any Governmental Entity is necessary or required for the performance by the Company of its obligations hereunder, in connection with
the offering, sale of the Shares hereunder or the consummation of the transactions contemplated by this Agreement, except such as have
been already obtained or as may be required under the Securities Act, the Rules and Regulations, the rules of The Nasdaq Stock Market
LLC, state securities laws, the rules of FINRA.

 

(v) Insurance.
On the date hereof, and after the date hereof other than as set forth in, or incorporated by reference into, the Registration Statement,
the Disclosure Package or the Prospectus, the Company and its Subsidiaries carry, or are covered by, insurance in such amounts and covering
such risks as is prudent, reasonable and, to the knowledge of the Company, customary for companies engaged in similar businesses in similar
industries; neither the Company nor its Subsidiaries has received notice from any insurer or agent of such insurer that material capital
improvements or other expenditures will have to be made in order to continue such insurance; all such insurance is outstanding and in
full force and effect and neither the Company nor the Subsidiaries has received any notice of cancellation or proposed cancellation relating
to such insurance.

 

(w) Environmental
Laws. Except as otherwise described in, or incorporated by reference into, the Registration Statement, the Disclosure Package and
the Prospectus or would not reasonably be expected to, singly or in the aggregate, result in a Material Adverse Effect, (A) neither the
Company nor any of its Subsidiaries is in violation of any statute, any rule, regulation, decision or order of any governmental agency
or body or any court, domestic or foreign, relating to the use, disposal or release of hazardous or toxic substances or relating to the
protection or restoration of the environment or human exposure to hazardous or toxic substances (collectively, “Environmental
Laws”), owns or operates any real property contaminated with any substance that is subject to any Environmental Laws, is liable
for any off-site disposal or contamination pursuant to any Environmental Laws, or is subject to any claim relating to any Environmental
Laws, which violation, contamination, liability or claim would individually or in the aggregate, have a Material Adverse Effect; and the
Company is not aware of any pending investigation which might lead to such a claim.

 

(x) Independent
Public Accountants. BDO Canada LLP (the “Auditor”), who has expressed its opinion with respect to the Company’s
audited financial statements (which term as used in this Agreement includes the related notes thereto) and any supporting schedules filed
with the Commission or incorporated by reference as a part of the Registration Statement and included in the Prospectus, is an independent
registered public accounting firm as required by the Securities Act and the Exchange Act.

 

(y) Forward-Looking
Statements. No forward looking statement within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act
contained in, or incorporated by reference into, the Commission Documents, the Registration Statement or the Prospectus, has been made
or reaffirmed without a reasonable basis or has been disclosed other than in good faith.

 

(z) Title
to Property. The Company and the Subsidiaries has good and marketable title to all real property owned by it and good title or valid
leases to all personal property owned by it, in each case, free and clear of all mortgages, pledges, liens, security interests, claims,
restrictions or Encumbrances (except for customary easements and rights of way) of any kind except such as (A) are described in, or incorporated
by reference into, the Registration Statement, the Disclosure Package and the Prospectus, (B) are not expected, singly or in the aggregate,
to materially affect the value of such property and to materially interfere with the use made and proposed to be made of such property
by the Company and the Subsidiaries, or (C) such other Encumbrances executed by the Company and its Subsidiaries in the ordinary course
of business or as or may be required to conduct their business (including without limitation, under the existing offices and lease agreements
of the Company and its Subsidiaries, and other Encumbrances executed with commercial banks in order to secure ongoing payments under credit
cards and/or corporate cards).

 

    9

     

    

 

(aa) Intellectual Property. Except as
otherwise described in, or incorporated by reference into, the Registration Statement, Prospectus or Disclosure Package or as would not
reasonably be expected to, individually or in the aggregate, result in a Material Adverse Effect, (i) the Company and its Subsidiaries
own or possess, or can promptly acquire on reasonable terms, ownership, licenses or other legal rights to use all patents, trademarks,
service marks, tradenames, copyrights, trade secrets or other proprietary rights (collectively, “Intellectual Property Rights”)
necessary for their respective businesses as now conducted, (ii) the Company believes it and its Subsidiaries have taken commercially
reasonable steps necessary to establish and preserve their respective ownership of all Intellectual Property Rights owned by the Company
or any of its Subsidiaries that is necessary for their respective businesses as now conducted, (iii) to the knowledge of the Company,
there is no infringement, misappropriation or other violation of the Intellectual Property Rights owned by the Company or any of its Subsidiaries
by any third party, (iv) to the knowledge of the Company, the present business, activities and products of the Company and its Subsidiaries
do not infringe, misappropriate or otherwise violate any Intellectual Property Rights of any other person or entity, (v) to the knowledge
of the Company, there is no proceeding pending or threatened in writing, charging the Company or any of its Subsidiaries with infringement,
misappropriation or other violation of any Intellectual Property Rights adversely held by a third party which has been filed, (vi) to
the knowledge of the Company, no proceedings have been instituted or are pending or threatened in writing, which challenge the rights
of the Company or any of its Subsidiaries to use the Intellectual Property Rights owned by or licensed to the Company or its Subsidiaries,
and (vii) the Intellectual Property Rights owned by and, to the knowledge of the Company, licensed, to the Company and its Subsidiaries,
has not been adjudged invalid or unenforceable in whole or in part and to the knowledge of the Company, there is no pending or threatened
in writing proceeding by others challenging the validity or scope of any such Intellectual Property Rights, and the Company is unaware
of any facts which are reasonably likely to form a basis for any such claim.

 

(bb) Taxes.

 

(i) The
Company has filed all federal and state and all applicable local and foreign income tax returns which have been required to be filed through
the date hereof, except in any case in which the failure to so file would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

 

(ii) The
Company has paid all federal, state and local and foreign taxes required to be paid and any other assessment, fine or penalty levied against
it, to the extent that any of the foregoing would otherwise be delinquent, except, in all cases, for any such tax, assessment, fine or
penalty that is being contested in good faith and except in any case in which the failure to so pay would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect.

 

(cc) No Reliance. The Company has not
relied upon Canaccord or legal counsel for Canaccord for any legal, tax or accounting advice in connection with the offering and sale
of the Placement Shares.

 

(dd) Underwriter Agreements. Except for
this Agreement, the Company is not a party to any agreement with an agent or underwriter for any other “at the market” transaction.

 

(ee) Disclosure Controls.

 

(i) Except
as otherwise described in, or incorporated by reference into, the Registration Statement, the Disclosure Package or the Prospectus, the
Company has established and maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the Exchange Act),
which (a) are designed to ensure that material information relating to the Company, including its consolidated Subsidiaries, is made known
to the Company’s principal executive officer and its principal financial officer by others within those entities, particularly during
the preparation of the Registration Statement; (b) have been evaluated for effectiveness in accordance with U.S. securities laws ; and
(c) are effective in all material respects to perform the functions for which they were established.

 

(ii) Except
as otherwise described in, or incorporated by reference into, the Registration Statement, the Disclosure Package or the Prospectus, the
Company (a) makes and keeps accurate books and records and (b) maintains internal accounting controls which provide reasonable assurance
that (1) transactions are executed in accordance with management’s authorization, (2) transactions are recorded as necessary to
permit preparation of its financial statements and to maintain accountability for its assets, (3) access to its assets is permitted only
in accordance with management’s authorization and (4) the reported accountability for its assets is compared with existing assets
at reasonable intervals and appropriate action is taken with respect to any differences.

 

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(ff) Accounting Controls. Except as otherwise
described in, or incorporated by reference into, the Registration Statement, the Disclosure Package and the Prospectus, the Company maintains
effective internal control over financial reporting (as defined under Rule 13a-15 and 15d-15 of the Exchange Act Regulations) and a system
of internal accounting controls sufficient to provide reasonable assurances that (A) transactions are executed in accordance with management’s
general or specific authorization; (B) transactions are recorded as necessary to permit preparation of financial statements in conformity
with US GAAP and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s general
or specific authorization; and (D) the recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. Except as otherwise described in, or incorporated by reference into,
the Registration Statement, the Disclosure Package and the Prospectus, since the end of the Company’s most recent audited fiscal
year, there has been (1) no material weakness identified in the Company’s internal control over financial reporting (whether or
not remediated) and (2) no adverse change in the Company’s internal control over financial reporting that has materially affected,
or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

 

(gg) Certain Market Activities. The Company
has not taken, directly or indirectly, without giving effect to activities by Canaccord, any action designed to, or that might be reasonably
expected to, cause or result in stabilization or manipulation of the price of the Shares.

 

(hh) Broker/Dealer Relationships. Neither
the Company nor the Subsidiaries or any related entities (i) is required to register as a “broker” or “dealer”
in accordance with the provisions of the Exchange Act or (ii) directly or indirectly through one or more intermediaries, controls or is
a “person associated with a FINRA member” or “associated person of a FINRA member” (within the meaning of Article
I of the Bylaws of the FINRA).

 

(ii) [Reserved].

 

(jj) Sarbanes-Oxley. The Company is in
compliance in all material respects with all applicable provisions of the Sarbanes-Oxley Act.

 

(kk) Finder’s Fees. Neither the
Company nor, to the Company’s knowledge, the Subsidiaries has incurred any liability for any brokerage commission, finder’s
fees or similar payments in connection with the transactions herein contemplated, except as may otherwise exist with respect to Canaccord
pursuant to this Agreement.

 

(ll) Labor Disputes. No labor dispute
with the employees of the Company or any of its Subsidiaries exists or, to the knowledge of the Company, is imminent, except where any
such labor dispute would not, individually or in the aggregate, result in a Material Adverse Effect.

 

(mm) Canaccord Purchases. The Company
acknowledges and agrees that Canaccord has informed the Company that Canaccord may, to the extent permitted under the Securities Act and
the Exchange Act, purchase and sell Common Shares for Canaccord’s own account and for the account of its clients at the same time
as sales of Placement Shares occur pursuant to this Agreement.

 

(nn) No Registration Rights. Except as
waived or as may be described in the Prospectus, including the documents incorporated therein by reference, neither the Company nor its
Subsidiaries is party to any agreement that provides any person with the right to require the Company or its Subsidiaries to register
any securities for sale under the Securities Act by reason of the filing of the Registration Statement with the Commission or the issuance
and sale of the Placement Shares.

 

(oo) Prospectus
Disclosure. The statements set forth in the Prospectus under the caption “Description of Common Shares We May Offer” insofar
as they purport to constitute a summary of the terms of the Shares, and under the caption “Plan of Distribution,” insofar
as they purport to describe in all material respects the provisions of the laws and documents referred to therein, are accurate and complete
in all material respects.

 

(pp) OFAC. To the knowledge of the Company,
none of the Company, its Subsidiaries or any director, officer, agent, employee or controlled affiliate of the Company or its Subsidiaries
is currently the target of any proceeding, investigation, suit or other action arising out of any U.S. sanctions administered by the Office
of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”); and the Company will not directly or indirectly
use the proceeds of the offering of the Placement Shares hereunder, or lend, contribute or otherwise make available such proceeds to any
subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject
to any U.S. sanctions administered by OFAC.

 

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(qq) Operations. The operations of the
Company and its Subsidiaries are and have been conducted at all times in compliance in all material respects with applicable financial
record keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering
statutes of all jurisdictions to which the Company and its Subsidiaries are subject, the rules and regulations thereunder and any related
or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money
Laundering Laws”), except as would not reasonably be expected to result in a Material Adverse Effect; and no action, suit or
proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or its Subsidiaries
with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(rr) Off-Balance Sheet Arrangements.
There are no transactions, arrangements and other relationships between and/or among the Company, and/or, to the knowledge of the Company,
any of its controlled affiliates and any unconsolidated entity, including, but not limited to, any structural finance, special purpose
or limited purpose entity (each, an “Off Balance Sheet Transaction”) that could reasonably be expected to affect materially
the Company’s liquidity or the availability of or requirements for its capital resources, including those Off Balance Sheet Transactions
described in the Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions and Results of
Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be described in, or incorporated by reference into, the Prospectus which
have not been described as required.

 

(ss) No Misstatement or Omission in an Issuer
Free Writing Prospectus. Each issuer free writing prospectus, as defined in Rule 405 under the Securities Act (an “Issuer
Free Writing Prospectus”), as of the Applicable Time did not or will not contain an untrue statement of a material fact or omit
to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;
provided, however, that the Company makes no representation or warranty with respect to any statement contained in any Issuer Free Writing
Prospectus in reliance upon and in conformity with written information furnished to the Company by and through Canaccord for use therein.

 

(tt) Conformity of Issuer Free Writing Prospectus.
Each Issuer Free Writing Prospectus conformed or will conform in all material respects with the requirements of the Securities Act on
the date of first use, and the Company has complied or will comply with any filing requirements applicable to such Issuer Free Writing
Prospectus pursuant to the Securities Act. Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through
the completion of the public offer and sale of the Placement Shares, did not, does not and will not include any information that conflicted,
conflicts or will conflict with the information contained in the Registration Statement, the Disclosure Package or the Prospectus, including
any document incorporated by reference therein that has not been superseded or modified. The Company has not made any offer relating to
the Shares that would constitute an Issuer Free Writing Prospectus without the prior written consent of Canaccord. The Company has retained
in accordance with the Securities Act all Issuer Free Writing Prospectuses that were not required to be filed pursuant to the Securities
Act.

 

(uu) eXtensible Business Reporting Language.
The interactive data in eXtensible Business Reporting Language included or incorporated by reference in the Registration Statement fairly
presents the information called for in all material respects and has been prepared in accordance with the Commission’s rules and
guidelines applicable thereto.

 

(vv) Cybersecurity. Except as otherwise
disclosed in, or incorporated by reference into, the Registration Statement and the Prospectus, or where the breach or compromise would
not, individually or in the aggregate, reasonably be expected have a Material Adverse Effect, (i)(x) to the knowledge of the Company,
there has been no security breach or other compromise of or relating to any of the Company’s or its Subsidiaries’ information
technology and computer systems, networks, hardware, software, data (including the data of their respective customers, employees, suppliers,
vendors and any third party data maintained by or on behalf of them), equipment or technology (collectively, “IT Systems and
Data”) and (y) the Company and its Subsidiaries have not been notified of, and have no knowledge of any event or condition that
would reasonably be expected to result in, any security breach or other compromise to their IT Systems and Data except where such event
or condition would not, individually or in the aggregate, reasonably be expected have a Material Adverse Effect; and (ii) the Company
and its Subsidiaries are presently in compliance with all applicable laws or statutes and all judgments, orders, rules and regulations
of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy
and security of IT Systems and Data and to the protection of such IT Systems and Data from unauthorized use, access, misappropriation
or modification.

 

(ww) [Reserved].

 

(xx) Stabilization.
The Company has not taken, nor will it take, directly or indirectly, any action designed to, or which might reasonably be expected to
cause or result in, or which has constituted or which might reasonably be expected to constitute, the stabilization or manipulation of
the price of the Common Shares or any security of the Company to facilitate the sale or resale of any of the Shares.

 

(yy) Lending Relationship. Except as
otherwise disclosed in, or incorporated by reference into, the Registration Statement, the Disclosure Package and the Prospectus, the
Company (A) does not have any material lending or other relationship with any bank or lending affiliate of Canaccord and (B) does not
intend to use any of the proceeds from the sale of the Placement Shares to repay any outstanding debt owed to any affiliate of Canaccord.

 

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(zz) Statistical and Market-Related Data.
Any statistical and market-related data included in, or incorporated by reference into, the Registration Statement, the Disclosure Package
or the Prospectus are based on or derived from sources that the Company believes, after reasonable inquiry, to be reliable and accurate
in all material respects and, to the extent required, the Company has obtained the written consent to the use of such data from such sources.

 

(aaa) Related Party Transactions. There
are no business relationships or related-party transactions involving the Company, any of the Subsidiaries or any other person required
to be described in, or incorporated by reference into, the Registration Statement, the Prospectus and the Disclosure Package, which have
not been described as required. The Disclosure Package and the Prospectus contains in all material respects the description of the matters
set forth in the preceding sentence as required by the applicable law.

 

(bbb) Margin Rules. The application of
the proceeds received by the Company from the issuance, sale and delivery of the Placement Shares as described in the Registration Statement,
the Disclosure Package and the Prospectus will not violate Regulation T, U or X of the Board of Governors of the Federal Reserve System
or any other regulation of such Board of Governors.

 

(ccc) Cannabis Regulation.

 

(i) Neither
the Company nor any of its Subsidiaries has received any inspection report, notice of adverse finding, warning letter, untitled letter
or other correspondence with or notice from any federal, provincial, territorial, state, municipal, local or foreign governmental or regulatory
authority or court or arbitrator in Canada or any other country, alleging or asserting noncompliance with any applicable laws or regulations,
that has not been resolved by the Company or its Subsidiaries, as the case may be, or that otherwise would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. The Company and each of its Subsidiaries and any person acting on behalf of
the Company or any of its Subsidiaries are and have been in compliance with applicable health care, cannabis, controlled drug and substance,
pharmaceutical, privacy and personal health information laws and the regulations promulgated pursuant to such laws and all other federal,
provincial, territorial, state, municipal, local or foreign laws, manual provisions, policies and administrative guidance relating to
the regulation of the Company or its Subsidiaries in any country, except where any non-compliance would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries has, either voluntarily or involuntarily,
initiated, conducted or issued or caused to be initiated, conducted or issued, any material recall, market withdrawal or replacement,
safety alert, post-sale warning or other notice or action relating to the alleged safety or efficacy of any product or any alleged product
defect or violation and there is no basis for any such notice or action.

 

(ii) Except
as otherwise described in, or incorporated by reference into, the Registration Statement, Prospectus and Disclosure Package, neither the
Company nor any of its Subsidiaries, nor, to the Company’s knowledge, any director, officer, employee, agent or other person acting
on behalf of the Company or any of its Subsidiaries has cultivated, produced, processed, imported, sold or distributed, or has any current
intention to cultivate, produce, process, import, sell or distribute, any cannabis products containing any level of THC) or has otherwise
engaged in, targeted or derived revenues or funds from or expend any funds in relation to, or has any current intention to otherwise engage
in, target or derive (or reasonably expect to derive) revenues or funds from or expand any funds in relation to, any direct or indirect
dealings or transactions (including, for the avoidance of doubt, with respect to Intellectual Property pertaining to cannabis products)
in or to the United States of America, any state of the United States and its territories and possessions or the District of Columbia
or any other federal, provincial, territorial, state, municipal, local or foreign jurisdiction where such activity is not fully lawful
under all applicable federal, state, provincial or territorial laws. Neither the Company nor any of its Subsidiaries has cultivated, produced,
processed, imported, sold or distributed in or exported any cannabis product to or from any jurisdiction except the jurisdictions disclosed
in the Registration Statement, the Disclosure Package and the Prospectus, including the documents incorporated by reference therein. The
Company and its Subsidiaries have instituted and maintained and will continue to maintain policies and procedures reasonably designed
to ensure that the Company and its Subsidiaries do not carry on any cannabis-related activities in, or distribute or receive any cannabis
products to or from, or receive or distribute any funds, directly or indirectly, to or from any person carrying on such activities in
any jurisdiction where such activities or products are not fully in compliance with all applicable federal, state, provincial or territorial
laws.

  

(iii) Neither
the Company nor any of its Subsidiaries has engaged in, or will engage in: (i) any direct or indirect dealings or transactions in violation
of U.S. federal or state criminal laws, including, without limitation, the Controlled Substances Act, the Racketeer Influenced and Corrupt
Organizations Act, the Travel Act or any anti-money laundering statute, (ii) any “aiding and abetting” in any violation of
U.S. federal or state criminal laws, or (iii) any activity similar to (i) or (ii) where such activity is not fully lawful under all applicable
federal, state, provincial or territorial laws of any other federal, provincial, territorial, state or foreign jurisdiction. No action,
suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company, or any of
its Subsidiaries with respect to U.S. federal or state criminal laws, or such similar laws, to the knowledge of the Company, of any other
federal, provincial, territorial, state or foreign jurisdiction, is pending or, to the knowledge of the Company, threatened.

 

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(iv) Except
as disclosed in the Registration Statement, the Disclosure Package and the Prospectus, each director and executive officer that is required
to hold security clearance under applicable regulations holds such clearance and the Company and its Subsidiaries are not aware of any
circumstance that would affect or prevent them from obtaining such security clearances.  

  

7. Covenants
of the Company. The Company covenants and agrees with Canaccord that:

 

(a) Registration
Statement Amendments. After the date of this Agreement and during the period in which a prospectus relating to the Placement Shares
is required to be delivered by Canaccord under the Securities Act (including in circumstances where such requirement may be satisfied
pursuant to Rule 172 or Rule 173(a) under the Securities Act), (i) the Company will notify Canaccord promptly of the time when any subsequent
amendment to the Registration Statement has been filed with the Commission and has become effective (each, a “Registration Statement
Amendment Date”) or any subsequent supplement to the Prospectus has been filed and of any request by the Commission for any
amendment or supplement to the Registration Statement or Prospectus or for additional information; (ii) the Company will file promptly
all other material required to be filed by it with the Commission pursuant to Rule 433(d) under the Securities Act; (iii) it will prepare
and file with the Commission, promptly upon Canaccord’s request, any amendments or supplements to the Registration Statement or
Prospectus that (under the advice of counsel) are necessary or advisable in connection with the distribution of the Placement Shares by
Canaccord (provided, however that the failure of Canaccord to make such request shall not relieve the Company of any obligation or liability
hereunder, or affect Canaccord’s right to rely on the representations and warranties made by the Company in this Agreement); and
(iv) the Company will submit to Canaccord a copy of any amendment or supplement to the Registration Statement or Prospectus a reasonable
period of time before the filing thereof and will afford Canaccord and Canaccord’s counsel a reasonable opportunity to comment on
any such proposed filing prior to such proposed filing; and the Company will cause each amendment or supplement to the Prospectus to be
filed with the Commission as required pursuant to the applicable paragraph of Rule 424(b) of the Rules and Regulations or, in the case
of any document to be incorporated therein by reference, to be filed with the Commission as required pursuant to the Exchange Act, within
the time period prescribed.

 

(b) Notice
of Commission Stop Orders. The Company will advise Canaccord, promptly after it receives notice thereof, of the issuance by the Commission
of any stop order or of any order preventing or suspending the use of the Prospectus or other prospectus in respect of the Shares, of
any notice of objection of the Commission to the use of the form of the Registration Statement or any post-effective amendment thereto
pursuant to Rule 401(g)(2) under the Securities Act, of the suspension of the qualification of the Shares for offering or sale in any
jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending
or supplementing of the form of the Registration Statement or the Prospectus or for additional information; and, in the event of the issuance
of any such stop order or of any such order preventing or suspending the use of the Prospectus in respect of the Shares or suspending
any such qualification, to promptly use its commercially reasonable efforts to obtain the withdrawal of such order; and in the event of
any such issuance of a notice of objection, promptly to take such reasonable steps as may be necessary to permit offers and sales of the
Placement Shares by Canaccord, which may include, without limitation, amending the Registration Statement or filing a new registration
statement, at the Company’s expense (references in this Section 7 to the Registration Statement shall include any such amendment
or new registration statement).

 

(c) Delivery
of Prospectus; Subsequent Changes. Within the time during which a prospectus relating to the Shares is required to be delivered by
Canaccord under the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule 172 or Rule 173(a)
under the Securities Act), the Company will comply with all requirements imposed upon it by the Securities Act and by the Rules and Regulations,
as from time to time in force, and will file on or before their respective due dates all reports required to be filed by it with the Commission
pursuant to Sections 13(a), 13(c), 15(d), if applicable, or any other provision of or under the Exchange Act. If during such period any
event occurs as a result of which the Prospectus as then amended or supplemented would include an untrue statement of material fact or
omit to state a material fact necessary to make the statements therein, in the light of the circumstances then existing, not misleading,
or if during such period it is necessary to amend or supplement the Registration Statement or Prospectus to comply with the Securities
Act, the Company will promptly notify Canaccord to suspend the offering of Shares during such period and the Company will promptly amend
or supplement the Registration Statement or Prospectus (at the expense of the Company) so as to correct such statement or omission or
effect such compliance.

 

(d) Nasdaq
Filings. In connection with the offering and sale of the Placement Shares, the Company will file with the Principal Trading Market
all documents and notices, and make all certifications, required by the Principal Trading Market of companies that have securities that
are listed on the Principal Trading Market.

 

(e) Listing
of Placement Shares. The Company will use commercially reasonable efforts to cause the Placement Shares to be listed on the Principal
Trading Market and to qualify the Placement Shares for sale under the securities laws of such jurisdictions as Canaccord designates and
to continue such qualifications in effect so long as required for the distribution of the Placement Shares; provided that the Company
shall not be required in connection therewith to qualify as a foreign corporation or other entity or as a dealer in securities in any
such jurisdiction where it would not otherwise be required to so qualify or to file a general consent to service of process in any such
jurisdiction or subject itself to taxation in any such jurisdiction if it is not otherwise so subject.

 

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(f) Delivery
of Registration Statement and Prospectus. Upon the request of the Company will furnish to Canaccord and its counsel (at the expense
of the Company) copies of the Registration Statement, the Prospectus (including all documents incorporated by reference therein) and all
amendments and supplements to the Registration Statement or Prospectus that are filed with the Commission during the period in which a
prospectus relating to the Shares is required to be delivered under the Securities Act (including all documents filed with the Commission
during such period that are deemed to be incorporated by reference therein), in each case as soon as reasonably practicable and in such
quantities as Canaccord may from time to time reasonably request and, at Canaccord’s request, will also furnish copies of the Prospectus
to each exchange or market on which sales of Placement Shares may be made.

 

(g) Expenses.

 

(i) The
Company, whether or not the transactions contemplated hereunder are consummated or this Agreement is terminated, will pay or cause to
be paid all expenses incident to the performance of its obligations hereunder, including but not limited to (i) the preparation, printing
and filing of the Registration Statement and each amendment and supplement thereto, of each Prospectus and of each amendment and supplement
thereto and each Issuer Free Writing Prospectus (as defined in Section 8 of this Agreement), (ii) the preparation, issuance
and delivery of the Placement Shares, (iii) all fees and disbursements of the Company’s counsel, accountants and other advisors,
(iv) the qualification of the Placement Shares under securities laws in accordance with the provisions of Section 7(e) of
this Agreement, including filing fees in connection therewith, (v) the printing and delivery to Canaccord of any requested copies of the
Prospectus and any amendments or supplements thereto, and of this Agreement, (vi) the fees and expenses incurred in connection with the
listing or qualification of the Placement Shares for trading on the Exchange, and (vii) any filing fees and expenses incident to any review
by the Financial Industry Regulatory Authority (including reasonable and documented fees and disbursements of counsel to Canaccord incurred
in connection therewith not to exceed $5,000) of the terms of the sale of the Placement Shares.

 

(ii) In
addition to any fees that may be payable to Canaccord hereunder and regardless of whether or not the transactions contemplated hereunder
are consummated or this Agreement is terminated, the Company shall reimburse Canaccord for all of its reasonable and documented expenses,
up to a maximum reimbursement of $50,000, arising out of this Agreement (including travel and related expenses, the costs of document
preparation, production and distribution, third party research and database services and the reasonable fees and disbursements of counsel
to Canaccord) within ten (10) days of the presentation by Canaccord to the Company of a reasonably detailed statement therefor. In no
event shall Canaccord be entitled to reimbursement of expenses hereunder to the extent it would cause Canaccord to receive total compensation
in excess of eight percent (8.0%) of the total proceeds for the sale of Placement Shares hereunder.

 

(h) Use
of Proceeds. The Company will use the Net Proceeds as described in the Prospectus.

 

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(i) Other
Sales. Without the prior written consent of Canaccord (which consent shall not be unreasonably withheld, conditioned or delayed),
the Company will not (A) directly or indirectly, offer to sell, sell, announce the intention to sell, contract to sell, pledge, lend,
grant or sell any option, right or warrant to sell or any contract to purchase, purchase any contract or option to sell or otherwise transfer
or dispose of any Common Shares (other than the Shares offered pursuant to the provisions of this Agreement) or securities convertible
into or exchangeable for Common Shares, warrants or any rights to purchase or acquire, Common Shares or file any registration statement
under the Securities Act with respect to any of the foregoing (other than a registration statement on Form S-8 or any amendments or supplements
to existing Registration Statements on Form S-1 or any new Registration Statements on Form S-1 or S-3 in replacement thereof pursuant
to registration requirements of the Company in existence on the date hereof), or (B) enter into any swap or other agreement or any transaction
that transfers in whole or in part, directly or indirectly, any of the economic consequence of ownership of the Common Shares, or any
securities convertible into or exchangeable or exercisable for or repayable with Common Shares, whether any such swap or transaction described
in clause (A) or (B) above is to be settled by delivery of Common Shares or such other securities, in cash or otherwise, during the period
beginning on the date on which any Placement Notice is delivered by the Company hereunder and ending on the final Settlement Date with
respect to Placement Shares sold pursuant to such Placement Notice; and without the prior written consent of Canaccord (which consent
shall not be unreasonably withheld, conditioned or delayed), the Company will not directly or indirectly in any other “at the market”
or continuous equity transaction offer to sell, sell, contract to sell, grant any option to sell or otherwise dispose of any Common Shares
(other than the Placement Shares offered pursuant to the provisions of this Agreement) or securities convertible into or exchangeable
for Common Shares, warrants or any rights to purchase or acquire, Common Shares prior to the termination of this Agreement; provided,
however, that such restrictions will not be applicable to the Company’s issuance or sale of (i) Common Shares, options to purchase
Common Shares or Common Shares issuable upon the exercise of options, restricted share unit awards, or Common Shares issuable upon the
settlement of restricted share unit awards, or other equity awards or Common Shares issuable upon exercise or vesting of such other equity
awards, pursuant to any (x) Company Equity Incentive Plan, (y) share ownership or share purchase plan or (z) dividend reinvestment plan
(but not shares subject to a waiver to exceed plan limits in its dividend reinvestment plan) of the Company whether now in effect or hereafter
implemented, (ii) Common Shares issuable upon conversion of securities or the exercise of warrants, options or other rights in effect
or outstanding on the date hereof, and (iii) Common Shares or securities convertible into or exchangeable for Common Shares, warrants
or any rights to purchase or acquire Common Shares pursuant to any merger, consolidation, reorganization or sale, financing activity,
or other transaction involving the Company.

 

(j) Change
of Circumstances. The Company will, at any time during the term of this Agreement, as supplemented from time to time, advise Canaccord
promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would materially alter or
affect any opinion, certificate, letter or other document provided to Canaccord pursuant to this Agreement.

 

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(k) Due
Diligence Cooperation. The Company will cooperate with any due diligence review conducted by Canaccord or its agents, including, without
limitation, providing information and making available documents and senior corporate officers, as Canaccord may reasonably request; provided,
however, that the Company shall be required to make available senior corporate officers only (i) by telephone or at the Company’s
principal offices and (ii) during the Company’s ordinary business hours.

 

(l) Affirmation
of Representations, Warranties, Covenants and Other Agreements. Upon commencement of the offering of the Placement Shares under this
Agreement (and upon the recommencement of the offering of the Placement Shares under this Agreement following any termination of a suspension
of sales hereunder), and at each Applicable Time, each Settlement Date, each Registration Statement Amendment Date and each Company Periodic
Report Date (as defined below), in each case, to the extent no waiver is applicable pursuant to Section 7(n), the Company
shall be deemed to have affirmed each representation, warranty, covenant and other agreement contained in this Agreement.

 

(m) Required
Filings Relating to Placement of Placement Shares. In each Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed by the
Company in respect of any quarter in which sales of Placement Shares were made by Canaccord under this Agreement (each date on which any
such document is filed, and any date on which an amendment to any such document is filed, a “Company Periodic Report Date”),
the Company shall set forth with regard to such quarter the number of Shares sold through Canaccord under this Agreement and the Net Proceeds
received by the Company.

 

(n) Representation
Dates; Certificate. During the term of this Agreement, on the date of each Placement Notice given hereunder, and each time the Company
(i) files the Prospectus relating to the Placement Shares or amends or supplements (other than a prospectus supplement relating solely
to an offering of securities other than the Placement Shares) the Registration Statement or the Prospectus relating to the Placement Shares
by means of a post-effective amendment, sticker, or supplement but not by means of incorporation of document(s) by reference to the Registration
Statement or the Prospectus relating to the Placement Shares; (ii) files an annual report on Form 10-K or quarterly report on Form 10-Q
under the Exchange Act; or (iii) files a report on Form 8-K containing amended financial information (other than an earnings release,
to “furnish” information pursuant to Form 8-K relating to the reclassifications of certain properties as discontinued operations
in accordance with Statement of Financial Accounting Standards No. 144) under the Exchange Act (each date of filing of one or more of
the documents referred to in clauses (i) through (iii) shall be a “Representation Date”); the Company shall furnish
Canaccord (but in the case of clause (iii) above only if Canaccord reasonably determines that the financial information contained in such
Form 8-K is material) with a certificate, in the form attached hereto as Exhibit A. The requirement to provide a certificate
under this Section 7(n) shall be waived for any Representation Date occurring at a time at which no Placement Notice
is pending, which waiver shall continue until the earlier to occur of the date the Company delivers a Placement Notice hereunder (which
for such calendar quarter shall be considered a Representation Date) and the next occurring Representation Date; provided, however,
that such waiver shall not apply for any Representation Date on which the Company files its annual report on Form 10-K. Notwithstanding
the foregoing, if the Company subsequently decides to sell Placement Shares following a Representation Date when the Company relied on
such waiver and did not provide Canaccord with a certificate under this Section 7(n), then before the Company delivers the
Placement Notice or Canaccord sells any Placement Shares, the Company shall provide Canaccord with a certificate, in the form attached
hereto as Exhibit A, dated the date of the Placement Notice.

 

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(o) Legal
Opinions. Upon commencement of the offering of Placement Shares under this Agreement (and upon the recommencement of the offering
of the Placement Shares under this Agreement following any termination of a suspension of sales hereunder), and promptly after each (i)
Registration Statement Amendment Date and (ii) Company Periodic Report Date, in each case, to the extent no waiver is applicable pursuant
to Section 7(n), the Company will furnish or cause to be furnished to Canaccord the written opinion and negative assurance
letter, to the extent applicable, of (a) Freshfields Bruckhaus Deringer LLP, U.S. counsel for the Company, and (b) Dentons Canada LLP,
Canadian legal counsel for the Company, or other counsel reasonably satisfactory to Canaccord, dated the date of such commencement or
recommencement or the date of effectiveness of such amendment or the date of filing with the Commission of such supplement or other document,
as the case may be, in a form and substance reasonably satisfactory to Canaccord and its counsel, provided, however, in lieu
of such opinion and letter, counsel last furnishing such letter to Canaccord may furnish Canaccord with a letter substantially to the
effect that Canaccord may rely on such last opinion and letter to the same extent as though each were dated the date of such letter authorizing
reliance (except that statements in such last letter shall be deemed to relate to the Registration Statement and the Prospectus as amended
and supplemented to the time of delivery of such letter authorizing reliance). As used in this paragraph, to the extent there shall be
an Applicable Time on or following the date referred to in clause (i) or (ii) above, promptly shall be deemed to be on or prior to the
next succeeding Applicable Time. Such opinion and negative assurance letter, to the extent applicable, shall be rendered to Canaccord
at the request of the Company and shall state so therein.

 

(p) Comfort
Letters. Upon commencement of the offering of Placement Shares under this Agreement (and upon the recommencement of the offering of
the Shares under this Agreement following any termination of a suspension of sales hereunder), and promptly after each (i) Registration
Statement Amendment Date and (ii) Company Periodic Report Date, in each case, to the extent no waiver is applicable pursuant to Section
7(n) the Company shall cause its independent accountants reasonably satisfactory to Canaccord, to furnish Canaccord letters dated
the date of this Agreement or the date of such commencement or recommencement or the date of effectiveness of such amendment or the date
of filing of such supplement or other document with the Commission, as the case may be (the “Comfort Letters”), in
form and substance satisfactory to Canaccord, (i) confirming that they are registered independent public accountants within the meaning
of the Securities Act and are in compliance with the applicable requirements relating to the qualification of accountants under Rule 2-01
of Regulation S-X of the Commission, (ii) stating, as of such date, the conclusions and findings of such firm with respect to the financial
information and other matters included in or incorporated by reference in the Registration Statement as ordinarily covered by accountants’
“comfort letters” to underwriters in connection with registered public offerings (the first such letter, the “Initial
Comfort Letter”) and (iii) updating the Initial Comfort Letter with any information which would have been included in the Initial
Comfort Letter had it been given on such date and modified as necessary to relate to the Registration Statement and the Prospectus, as
amended and supplemented to the date of such letter.

 

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(q) Market
Activities. The Company will not, directly or indirectly, without giving effect to activities by Canaccord, (i) take any action designed
to cause or result in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of the Shares or (ii) sell, bid for, or purchase the Shares, or pay anyone
any compensation for soliciting purchases of the Shares other than Canaccord.

 

(r) Insurance.
The Company and its Subsidiaries shall maintain, or cause to be maintained, insurance in such amounts and covering such risks as is reasonable
and customary for companies engaged in similar businesses in similar industries.

 

(s) Compliance
with Laws. The Company and its Subsidiaries shall comply with all federal, state and local or foreign law, rule, regulation, ordinance,
order or decree applicable to them, except where failure to so comply would not reasonably be expected to have a Material Adverse Effect.
Furthermore, the Company and its Subsidiaries shall maintain, or cause to be maintained, all material environmental permits, licenses
and other material authorizations required by federal, state and local law in order to conduct their businesses as described in, or incorporated
by reference into, the Registration Statement, the Disclosure Package or the Prospectus, and the Company and its Subsidiaries shall conduct
their businesses, or cause their businesses to be conducted, in substantial compliance with such material permits, licenses and authorizations
and with applicable environmental laws, except where the failure to maintain or be in compliance with such permits, licenses and authorizations
would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

 

(t) Investment
Company Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that it will not be or become, at any
time prior to the termination of this Agreement, an “investment company,” as such term is defined in the Investment Company
Act, assuming no change in the Commission’s current interpretation as to entities that are not considered an investment company.

 

(u) Securities
Act and Exchange Act. The Company will use commercially reasonable efforts to comply, in all material respects, with all requirements
imposed upon it by the Securities Act and the Exchange Act as from time to time in force, so far as necessary to permit the continuance
of sales of, or dealings in, the Shares as contemplated by the provisions hereof and the Prospectus.

 

(v) No
Offer to Sell. Other than a free writing prospectus (as defined in Rule 405 under the Securities Act) approved in advance by the Company
and Canaccord in its capacity as principal or agent hereunder, neither Canaccord nor the Company (including its agents and representatives,
other than Canaccord in its capacity as such) will make, use, prepare, authorize, approve or refer to any written communication (as defined
in Rule 405 under the Securities Act), required to be filed by it with the Commission, that constitutes an offer to sell or solicitation
of an offer to buy Common Shares hereunder.

 

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(w) Sarbanes-Oxley
Act. The Company and the Subsidiaries will comply, in all material respects, with all effective applicable provisions of the Sarbanes-Oxley
Act.

 

(x) Consent
to Canaccord Trading. The Company consents to Canaccord trading in the Common Shares of the Company for Canaccord’s own account
and for the account of its clients at the same time as sales of Placement Shares occur pursuant to this Agreement.

 

(y) Rescission
Offers. If, to the knowledge of the Company, all filings required by Rule 424 in connection with this offering shall not have been
made or the representation in Section 6 shall not be true and correct on the applicable Settlement Date, the Company
will offer to any person who has agreed to purchase Placement Shares from the Company as the result of an offer to purchase solicited
by Canaccord the right to refuse to purchase and pay for such Placement Shares.

 

(z) Actively
Traded Security. If, at the time of execution of this Agreement, the Company’s Common Shares are not an “actively traded
security” exempted from the requirements of Rule 101 of Regulation M under the Exchange Act by subsection (c)(1) of such rule, the
Company shall notify Canaccord at the time the Common Shares becomes an “actively traded security” under such rule. Furthermore,
the Company shall notify Canaccord immediately if the Common Shares, having once qualified for such exemption, ceases to so qualify.

 

(aa) Blue Sky Qualifications. The Company
will use its commercially reasonable efforts, in cooperation with Canaccord, to qualify the Placement Shares for sale under the applicable
securities laws of such states and other jurisdictions (domestic or foreign) as Canaccord may designate and to maintain such qualifications
in effect so long as required to complete the sale of the Placement Shares; provided, however, that the Company shall not be obligated
to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction
in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise
so subject.

 

(bb) Emerging Growth Company Status.
The Company will promptly notify Canaccord if the Company ceases to be an Emerging Growth Company at any time prior to the termination
of this Agreement.

 

(cc) Tax Indemnity. The Company will
indemnify and hold harmless Canaccord against any documentary, stamp or similar issue tax, including any interest and penalties, on the
issue and sale of the Placement Shares.

 

8. Additional
Representations and Covenants of the Company.

 

(a) Issuer
Free Writing Prospectuses.

 

(i) The
Company represents that it has not made, and covenants that, unless it obtains the prior written consent of Canaccord (such consent not
to be unreasonably withheld, conditioned or delayed), it will not make any offer relating to the Shares that would constitute a “free
writing prospectus” (as defined in Rule 405 of the Securities Act) (an “Issuer Free Writing Prospectus”) required
to be filed by it with the Commission or retained by the Company under Rule 433 of the Securities Act; except as set forth in a Placement
Notice, no use of any Issuer Free Writing Prospectus has been consented to by Canaccord. The Company agrees that it will comply with the
requirements of Rules 164 and 433 of the Securities Act applicable to any Issuer Free Writing Prospectus, including timely filing with
the Commission or retention where required and legending.

 

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(ii) The
Company agrees that no Issuer Free Writing Prospectus, if any, will include any information that conflicts with the information contained
in the Registration Statement, including any document incorporated by reference therein that has not been superseded or modified, or the
Prospectus. In addition, no Issuer Free Writing Prospectus, if any, will include an untrue statement of a material fact or omit to state
a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; provided
however, the foregoing shall not apply to any statements or omissions in any Issuer Free Writing Prospectus made in reliance on information
furnished in writing to the Company by Canaccord expressly stating that such information is intended for use therein.

 

(iii) The
Company agrees that if at any time following issuance of an Issuer Free Writing Prospectus any event occurred or occurs as a result of
which such Issuer Free Writing Prospectus would conflict with the information in the Registration Statement, including any document incorporated
by reference therein that has not been superseded or modified, or the Prospectus or would include an untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not
misleading, the Company will give prompt notice thereof to Canaccord and, if reasonably requested by Canaccord, will prepare and furnish
without charge to Canaccord an Issuer Free Writing Prospectus or other document which will correct such conflict, statement or omission; provided,
however, the foregoing shall not apply to any statements or omissions in any Issuer Free Writing Prospectus made in reliance on information
furnished in writing to the Company by Canaccord expressly stating that such information is intended for use therein.

 

(b) Non-Issuer
Free Writing Prospectus. The Company consents to the use by Canaccord of a free writing prospectus that (a) is not an “Issuer
Free Writing Prospectus” as defined in Rule 433 under the Securities Act, and (b) contains only information describing the preliminary
terms of the Shares or their offering, or information permitted under Rule 134 under the Securities Act; provided that Canaccord covenants
with the Company not to take any action that would result in the Company being required to file with the Commission under Rule 433(d)
under the Securities Act a free writing prospectus prepared by or on behalf of Canaccord that otherwise would not be required to be filed
by the Company thereunder, but for the action of Canaccord.

 

(c) Distribution
of Offering Materials. The Company has not distributed and will not distribute, during the term of this Agreement, any offering materials
in connection with the offering and sale of the Placement Shares other than the Registration Statement, Prospectus or any Issuer Free
Writing Prospectus reviewed and consented to by Canaccord and included in a Placement Notice (as described in clause (a)(i) above).

 

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9. Conditions
to Canaccord’s Obligations. The obligations of Canaccord hereunder with respect to a Placement will be subject to the continuing
accuracy and completeness of the representations and warranties made by the Company herein and in the applicable Placement Notices, to
the due performance by the Company of its obligations hereunder, to the completion by Canaccord of a due diligence review satisfactory
to Canaccord in its reasonable judgment, and to the continuing satisfaction (or waiver by Canaccord in its sole discretion) of the following
additional conditions:

 

(a) Registration
Statement Effective. The Registration Statement shall have become effective and shall be available for the sale of (i) all Placement
Shares issued pursuant to all prior Placements and not yet sold by Canaccord and (ii) all Placement Shares contemplated to be issued by
the Placement Notice relating to such Placement.

 

(b) No
Material Notices. None of the following events shall have occurred and be continuing: (i) receipt by the Company of any request for
additional information from the Commission or any other federal or state or foreign or other governmental, administrative or self-regulatory
authority during the period of effectiveness of the Registration Statement, the response to which might reasonably require any amendments
or supplements to the Registration Statement or the Prospectus; (ii) the issuance by the Commission or any other federal or state or foreign
or other governmental authority of any stop order suspending the effectiveness of the Registration Statement or the initiation of any
proceedings for that purpose; (iii) receipt by the Company of any notification with respect to the suspension of the qualification or
exemption from qualification of any of the Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose; (iv) the occurrence of any event that makes any statement made in the Registration Statement or the Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes
in the Registration Statement, related prospectus or documents so that, in the case of the Registration Statement, it will not contain
any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements
therein not misleading, and in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit to state
any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading; and (v) the Company’s reasonable determination that a post-effective amendment to the Registration
Statement would be appropriate.

 

(c) No
Misstatement or Material Omission. Canaccord shall not have advised the Company that the Registration Statement or Prospectus, or
any amendment or supplement thereto, contains an untrue statement of fact that in Canaccord’s opinion (under the advice of counsel)
is material, or omits to state a fact that in Canaccord’s opinion (under the advice of counsel) is material and is required to be
stated therein or is necessary to make the statements therein not misleading.

 

(d) Material
Changes. Except as contemplated and appropriately disclosed in the Prospectus, or disclosed in the Company’s reports filed with
the Commission, in each case at the time the applicable Placement Notice is delivered, there shall not have been any material change,
on a consolidated basis, in the authorized share capital of the Company and its Subsidiaries, or any Material Adverse Effect, or any development
that may reasonably be expected to cause a Material Adverse Effect, or a downgrading in or withdrawal of the rating assigned to any of
the Company’s securities by any rating organization or a public announcement by any rating organization that it has under surveillance
or review its rating of any of the Company’s securities, the effect of which, in the sole judgment of Canaccord (without relieving
the Company of any obligation or liability it may otherwise have), is so material as to make it impracticable or inadvisable to proceed
with the offering of the Placement Shares on the terms and in the manner contemplated in the Prospectus.

 

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(e) Certificate.
Canaccord shall have received the certificate required to be delivered pursuant to Section 7(n) on or before the date
on which delivery of such certificate is required pursuant to Section 7(n).

 

(f) Legal
Opinions. Canaccord shall have received the opinions of counsel to the Company required to be delivered pursuant Section 7(o) on
or before the date on which such delivery of such opinions are required pursuant to Section 7(o). In addition, Canaccord shall
have received the negative assurance letter of Goodwin Procter LLP, counsel to Canaccord, on such dates and with respect to such matters
as Canaccord may reasonably request.

 

(g) Comfort
Letters. Canaccord shall have received the Comfort Letter required to be delivered pursuant Section 7(p) on or before
the date on which such delivery of such letter is required pursuant to Section 7(p).

 

(h) Approval
for Listing; No Suspension. The Placement Shares shall have either been (i) approved for listing, subject to notice of issuance, on
the Principal Trading Market, or (ii) the Company shall have filed an application for listing of the Placement Shares on the Principal
Trading Market at or prior to the issuance of the Placement Notice. Trading in the Common Shares shall not have been suspended on such
market.

 

(i) Other
Materials. On each date on which the Company is required to deliver a certificate pursuant to Section 7(n), the Company
shall have furnished to Canaccord such appropriate further information, certificates, opinions and documents as Canaccord may reasonably
request. All such opinions, certificates, letters and other documents will be in compliance with the provisions hereof. The Company will
furnish Canaccord with such conformed copies of such opinions, certificates, letters and other documents as Canaccord shall reasonably
request.

 

(j) Securities
Act Filings Made. All filings with the Commission required by Rule 424 under the Securities Act to have been filed prior to the issuance
of any Placement Notice hereunder shall have been made within the applicable time period prescribed for such filing by Rule 424.

 

(k) No
Termination Event. There shall not have occurred any event that would permit Canaccord to terminate this Agreement pursuant to Section
12(a).

 

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10. Indemnification
and Contribution.

 

(a) Company
Indemnification. The Company will indemnify and hold harmless Canaccord and each person, if any, who controls Canaccord within the
meaning of the Securities Act or the Exchange Act against any losses, claims, damages or liabilities, to which Canaccord or such controlling
person may become subject, under Section 15 of the Securities Act or Section 20 of the Exchange Act, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement (or any amendments thereto), the Prospectus (or any amendment or supplement thereto)
or the Disclosure Package or (ii) the omission or alleged omission to state therein a material fact, (a) in the case of the Registration
Statement or any amendment thereto, required to be stated therein or necessary to make the statements therein not misleading and (b) in
the case of the Prospectus or any supplement thereto or the Disclosure Package necessary to make the statements therein, in light of the
circumstances in which they were made, not misleading, and will reimburse Canaccord for any reasonable documented legal expenses of counsel
for Canaccord, and for other documented expenses reasonably incurred by Canaccord in connection with investigating or defending any such
action or claim as such expenses are incurred; provided, however, that the Company shall not be liable in any such case to
the extent that any such losses, claims, damages or liabilities arise out of or are based upon an untrue statement or alleged untrue statement
or omission or alleged omission was made in the Registration Statement (or any amendments thereto), the Prospectus (or any amendment or
supplement thereto) or the Disclosure Package, in reliance upon and in conformity with written information furnished to the Company by
and through Canaccord as set forth in Section 10(b) below expressly for use therein.

 

(b) Canaccord
Indemnification. Canaccord will indemnify and hold harmless the Company, each of its directors, each of its officers who signs the
Registration Statement, and each person, if any, who controls the Company within the meaning of the Securities Act or the Exchange Act
against any losses, claims, damages or liabilities to which the Company or such director, officer or controlling person may become subject
under Section 15 of the Securities Act or Section 20 of the Exchange Act, insofar as such losses, claims, damages or liabilities (or actions
in respect thereof) arise out of or are based upon (i) an untrue statement or alleged untrue statement of a material fact contained in
the Registration Statement (or any amendments thereto), the Prospectus (or any amendment or supplement thereto) or the Disclosure Package,
or (ii) the omission or alleged omission to state therein a material fact, (a) in the case of the Registration Statement or any amendment
thereto, required to be stated therein or necessary to make the statements therein not misleading and (b) in the case of the Prospectus
or any supplement thereto or the Disclosure Package, necessary to make the statements therein, in light of the circumstances in which
they were made, not misleading, in each case to the extent, but only to the extent, that any such losses, claims, damages or liabilities
arise out of or are based upon an untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration
Statement (or any amendments thereto), the Prospectus (or any amendment or supplement thereto), the Disclosure Package, in reliance upon
and in conformity with written information furnished to the Company by and through Canaccord expressly for use therein, it being understood
and agreed that the only such information furnished by Canaccord to the Company consists of the information set forth in the last sentence
of the seventh paragraph under the caption “Plan of Distribution” in the Prospectus; and will reimburse the Company for any
legal or other expenses reasonably incurred by the Company in connection with investigating or defending any such action or claim as such
expenses are incurred.

 

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(c) Procedure.

 

(i) Each
indemnified party shall give written notice as promptly as reasonably practicable to each indemnifying party of any action commenced against
it in respect of which indemnity may be sought hereunder, but failure to so notify an 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 Section 10. In the case of parties indemnified pursuant
to Section 10(a) above, counsel to the indemnified parties shall be selected by Canaccord, and, in the case of parties
indemnified pursuant to Section 10(b) above, counsel to the indemnified parties shall be selected by the Company. An
indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to
the indemnifying party shall not (except with the consent of the indemnified party) also be counsel to the indemnified party. In no event
shall the indemnifying parties be liable for fees and expenses of more than one counsel (in addition to any relevant local 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. No indemnifying party shall, without the prior written
consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any litigation, or any
investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification
or contribution could be sought under this Section 10 (whether or not the indemnified parties are actual or potential
parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all
liability arising out of such litigation, investigation, proceeding or claim and (ii) 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. Notwithstanding anything to the contrary herein, neither
the assumption of the defense of any such action nor the payment of any fees or expenses related thereto shall be deemed to be an admission
by the indemnifying party that it has an obligation to indemnify any person pursuant to this Agreement.

 

(ii) The
indemnifying party shall not be liable for any settlement of any proceeding effected without its written consent, but if settled with
such consent or if there be a final judgment for the plaintiff, the indemnifying person agrees to indemnify each indemnified party from
and against any loss, claim, damage or liability by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if
at any time an indemnified party shall have requested that an indemnifying party reimburse the indemnified party for reasonable fees and
expenses of counsel as contemplated by this section, the indemnifying person shall be liable for any settlement of any proceeding effected
without its written consent if (i) such settlement is entered into more than 30 days after receipt by the indemnifying party of the proposed
terms of such settlement and (ii) the indemnifying party shall not have reimbursed the indemnified person in accordance with such request
prior to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect
any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in respect of which
any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless
such settlement, compromise or consent includes an unconditional release of such indemnified party from all liability on claims that are
the subject matter of such action, suit or proceeding.

 

    25

     

    

 

(d) Contribution.
If the indemnification provided for in this Section 10 is for any reason held to be unavailable to or otherwise insufficient
to hold harmless an indemnified party under subsection (a) or (b) above in respect of any losses, claims, damages or liabilities (or actions
in respect thereof) referred to therein, then each indemnifying party shall contribute to the aggregate amount paid or payable by such
indemnified party, as incurred, as a result of such losses, claims, damages or liabilities (or actions in respect thereof) in such proportion
as is appropriate to reflect the relative benefits received by the Company on the one hand and Canaccord on the other from the offering
of the Placement Shares. If, however, the allocation provided by the immediately preceding sentence is not permitted by applicable law
or if the indemnified party failed to give the notice required under subsection (c) above, then each indemnifying party shall contribute
to such amount paid or payable by such indemnified party in such proportion as is appropriate to reflect not only such relative benefits
but also the relative fault of the Company on the one hand and Canaccord on the other in connection with the statements or omissions which
resulted in such losses, claims, damages or liabilities (or actions in respect thereof), as well as any other relevant equitable considerations.
The relative benefits received by the Company on the one hand and Canaccord on the other shall be deemed to be in the same proportion
as the total net proceeds from the offering of the Shares (before deducting expenses) received by the Company, bear to the total commissions
received by Canaccord. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged statement
of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company on the
one hand or Canaccord on the other and the parties’ relative intent, knowledge, access to information and opportunity to correct
or prevent such statement or omission. The Company and Canaccord agree that it would not be just and equitable if contributions pursuant
to this subsection (d) 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 subsection (d). The amount paid or payable by an indemnified party as a result of the
losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this subsection (d) shall be deemed to include
any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this subsection (d), Canaccord shall not be required to contribute any amount in excess of
the selling commission received by Canaccord in connection with the offering contemplated hereby. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this subsection (d), each officer and employee of Canaccord and each person, if any, who
controls Canaccord within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act shall have the same rights
to contribution as Canaccord, and each director of the Company, each officer of the Company who signed the Registration Statement, and
each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act
shall have the same rights to contribution as the Company.

 

(e) Obligations.
The obligations of the Company under this Section 10 shall be in addition to any liability which the Company may otherwise
have and shall extend, upon the same terms and conditions, to each person, if any, who controls Canaccord within the meaning of the Securities
Act; and the obligations of Canaccord under this Section 10 shall be in addition to any liability which Canaccord may
otherwise have and shall extend, upon the same terms and conditions, to each officer and director of the Company and to each person, if
any, who controls the Company within the meaning of the Securities Act.

 

    26

     

    

 

11. Representations
and Agreements to Survive Delivery. All representations and warranties contained in this Agreement or in certificates of officers
of the Company and Canaccord delivered pursuant hereto shall remain operative and in full force and effect regardless of (i) any investigation
made by or on behalf of Canaccord or its agents, any controlling persons of Canaccord, its officers or directors, or any person controlling
the Company (or any of their respective officers, directors or controlling persons), (ii) delivery and acceptance of the Placement Shares
and payment therefor or (iii) any termination of this Agreement.

 

12. Termination.

 

(a) Canaccord
shall have the right to terminate this Agreement at any time by giving notice as hereinafter specified if (i) any Material Adverse Effect
has occurred, or any development that is reasonably expected to cause a Material Adverse Effect has occurred or any other event has occurred
which, in the sole judgment of Canaccord, may materially impair Canaccord’s ability to proceed with the offering to sell the Shares,
(ii) the Company shall have failed, refused or been unable, at or prior to any Settlement Date, to perform any agreement on its part to
be performed hereunder, (iii) any other condition of Canaccord’s obligations hereunder is not fulfilled, or (iv) any suspension
or limitation of trading in the Common Shares of the Company on the Principal Trading Market shall have occurred. Any such termination
shall be without liability of any party to any other party except that the provisions of Section 7(g) (Expenses), Section
10 (Indemnification), Section 11 (Survival of Representations), Section 12(f) (Termination), Section
17 (Applicable Law; Consent to Jurisdiction) and Section 18 (Waiver of Jury Trial) hereof shall remain in full
force and effect notwithstanding such termination. If Canaccord elects to terminate this Agreement as provided in this Section
12(a), Canaccord shall provide the required notice as specified in Section 13 (Notices).

 

(b) The
Company shall have the right to terminate this Agreement in its sole discretion at any time by giving ten (10) days’ notice as hereinafter
specified. Any such termination shall be without liability of any party to any other party except that the provisions of Section
7(j), Section 10, Section 11, Section 12(f), Section 17 and Section 18 hereof
shall remain in full force and effect notwithstanding such termination.

 

(c) In
addition to, and without limiting Canaccord’s rights under Section 12(a), Canaccord shall have the right to terminate
this Agreement in its sole discretion at any time after the date of this Agreement by giving ten (10) days’ notice as hereinafter
specified. Any such termination shall be without liability of any party to any other party except that the provisions of Section
7(j), Section 10, Section 11, Section 12(f), Section 17 and Section 18 hereof
shall remain in full force and effect notwithstanding such termination.

 

(d) This
Agreement shall remain in full force and effect unless terminated pursuant to Sections 12(a), 12(b) or 12(c) above
or otherwise by mutual agreement of the parties; provided that any such termination by mutual agreement shall in all cases be deemed to
provide that Section 7(j), Section 10, Section 11, Section 12(f), Section 17 and Section
18 shall remain in full force and effect.

 

    27

     

    

 

(e) Any
termination of this Agreement shall be effective on the date specified in such notice of termination; provided that such termination shall
not be effective until the close of business on the date of receipt of such notice by Canaccord or the Company, as the case may be. If
such termination shall occur prior to the Settlement Date for any sale of Placement Shares, such Placement Shares shall settle in accordance
with the provisions of this Agreement.

 

(f) In
the event that the Company terminates this Agreement, as permitted under Section 12(b), the Company shall be under no continuing
obligation pursuant to this Agreement to utilize the services of Canaccord in connection with any sale of securities of the Company or
to pay any compensation to Canaccord other than compensation with respect to sales of Placement Shares subscribed on or before the termination
date and the Company shall be free to engage other placement agents and underwriters from and after the termination date with no continuing
obligation to Canaccord.

 

13. Notices.
All notices or other communications required or permitted to be given by any party to any other party pursuant to the terms of this Agreement
shall be in writing (including electronic transmission) and if sent to Canaccord, shall be delivered to:

 

Canaccord Genuity LLC

99 High Street, Suite 1200

Boston, MA 02110

Attention: ECM, General Counsel

Email: aviles@cgf.com

 

With a copy to:

 

Goodwin Procter LLP

The New York Times Building

620 Eighth Avenue

New York, NY 10018

Attention: Thomas S. Levato

Email: TLevato@goodwinlaw.com

 

or if sent to the Company, shall be delivered to:

 

Clever Leaves Holdings Inc.

6501 Congress Avenue

Boca Raton, Florida 33487

Attention: Chief Financial Officer

Email: hank.hague@cleverleaves.com

 

    28

     

    

 

With a copy to:

 

Freshfields Bruckhaus Deringer US LLP

601 Lexington Avenue

New York, NY 10022

Attention: Pamela Marcogliese

Email: Pamela.Marcogliese@freshfields.com

 

And a copy to:

 

Dentons Canada LLP

250 Howe Street

20th Floor

Vancouver, BC, Canada V6C 3R

Attention: Kimberly Burns

Email: kimberly.burns@dentons.com

 

Each party to this Agreement may change such address for notices by
sending to the other party to this Agreement written notice of a new address for such purpose. Each such notice or other communication
shall be deemed given (i) when delivered personally or by verifiable facsimile transmission (with an original to follow) on or before
4:30 p.m., eastern time, on a Business Day or, if such day is not a Business Day, on the next succeeding Business Day, (ii) on the next
Business Day after timely delivery to a nationally-recognized overnight courier, (iii) on the Business Day actually received if deposited
in the U.S. mail (certified or registered mail, return receipt requested, postage prepaid), and (iv) if sent by email, on the Business
Day on which the email was sent (provided no “bounce back” or notice of non-delivery is received). For purposes of this Agreement,
“Business Day” shall mean any day on which the Principal Trading Market and commercial banks in the city of New York
are open for business.

 

14. Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and Canaccord and their respective successors
and the affiliates, controlling persons, officers and directors referred to in Section 10 hereof. References to any of
either of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing
in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors
and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided
in this Agreement. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other
party, provided, however, that Canaccord may assign its rights and obligations hereunder to an affiliate of Canaccord without
obtaining the Company’s consent.

 

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15. Adjustments
for Share Splits. The parties acknowledge and agree that all share related numbers contained in this Agreement shall be adjusted to
take into account any share split, share dividend or similar event effected with respect to the Shares.

 

16. Entire
Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and placement notices issued
pursuant hereto) constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both
written and oral, among the parties hereto with regard to the subject matter hereof. Neither this Agreement nor any term hereof may be
amended except pursuant to a written instrument executed by the Company and Canaccord. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or
impaired thereby.

 

17. Applicable
Law; Consent to Jurisdiction. This Agreement shall be governed by, and construed in accordance with, the internal laws of the State
of New York without regard to the principles of conflicts of laws. Each party hereby irrevocably submits to the non-exclusive jurisdiction
of the state and federal courts sitting in the City of New York, borough of Manhattan, for the adjudication of any dispute hereunder or
in connection 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 personally 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. Each party hereby irrevocably waives
personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof (certified
or registered mail, return receipt requested) to such party at the address in effect for notices to it under this Agreement and agrees
that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.

 

18. Waiver
of Jury Trial. The Company and Canaccord hereby irrevocably waive any right either 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.

 

19. Absence
of Fiduciary Duties. The parties acknowledge that they are sophisticated in business and financial matters and that each of them is
solely responsible for making its own independent investigation and analysis of the transactions contemplated by this Agreement. They
further acknowledge that Canaccord has not been engaged by the Company to provide, and has not provided, financial advisory services in
connection with the terms of the offering and sale of the Shares nor has Canaccord assumed at any time a fiduciary relationship to the
Company in connection with such offering and sale. The parties also acknowledge that the provisions of this Agreement fairly allocate
the risks of the transactions contemplated hereby among them in light of their respective knowledge of the Company and their respective
abilities to investigate its affairs and business in order to assure that full and adequate disclosure has been made in the Registration
Statement, the Disclosure Package and the Prospectus (and any amendments and supplements thereto). The Company hereby waives, to the fullest
extent permitted by law, any claims it may have against Canaccord for breach of fiduciary duty or alleged breach of fiduciary duty and
agrees Canaccord shall have no liability (whether direct or indirect) to the Company in respect of such a fiduciary duty claim or to any
person asserting a fiduciary duty claim on behalf of or in right of the Company, including shareholders, employees or creditors of Company.

 

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20. Waiver
of Immunity. With respect to any suit or proceeding arising out of or relating to this Agreement or the transactions contemplated
hereby, each party irrevocably waives, to the fullest extent permitted by applicable law, all immunity (whether on the basis of sovereignty
or otherwise) from jurisdiction, service of process, attachment (both before and after judgment) and execution to which it might otherwise
be entitled, and with respect to any such suit or proceeding, each party waives any such immunity in any court of competent jurisdiction,
and will not raise or claim or cause to be pleaded any such immunity at or in respect of any such suit or proceeding, including, without
limitation, any immunity pursuant to the U.S. Foreign Sovereign Immunities Act of 1976, as amended.

 

21. Judgment
of Currency. The obligation of the Company in respect of any sum due to Canaccord under this Agreement shall, notwithstanding any
judgment in a currency other than U.S. dollars or any other applicable currency (the “Judgment Currency”), not be discharged
until the first business day, following receipt by Canaccord of any sum adjudged to be so due in the Judgment Currency, on which (and
only to the extent that) Canaccord may in accordance with normal banking procedures purchase U.S. dollars or any other applicable currency
with the Judgment Currency; if the U.S. dollars or other applicable currency so purchased are less than the sum originally due to Canaccord
hereunder, the Company agrees, as a separate obligation and notwithstanding any such judgment, to indemnify Canaccord against such loss.
If the U.S. dollars or other applicable currency so purchased are greater than the sum originally due to Canaccord hereunder, Canaccord
agrees to pay to the Company an amount equal to the excess of the U.S. dollars or other applicable currency so purchased over the sum
originally due to Canaccord hereunder.

 

22. Counterparts.
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 email
transmission.

 

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If the foregoing accurately reflects your understanding
and agreement with respect to the matters described herein please indicate your agreement by countersigning this Agreement in the space
provided below.

 

	 	Very truly yours,
	 	 	 
	 	Clever Leaves Holdings Inc. 
	 	 	 
	 	By:	/s/ Kyle Detwiler       
	 	Name: 	Kyle Detwiler
	 	Title:	Chief Executive Officer
	 	 	 
	 	 	 
	 	Canaccord Genuity LLC
	 	 	 
	 	By: 	/s/ Jennifer Pardi
	 	Name:	Jennifer Pardi
	 	Title:	Managing Director

 

    32

     

    

 

SCHEDULE 1

 

The Authorized Representatives of the Company are as follows:

 

Kyle Detwiler

kyle.detwiler@cleverleaves.com

 

Henry Hague

hank.hague@cleverleaves.com

 

The Authorized Representatives of Canaccord are as follows:

 

Jen Pardi

jpardi@cgf.com

Tom Pollard

tpollard@cgf.com

Michael Wright

mwright@cgf.com

 

    33

     

    

 

SCHEDULE 2

 

Subsidiaries

 

	Name	 	Jurisdiction of Incorporation
	Clever Leaves International Inc.	 	British Columbia, Canada
	Clever Leaves US, Inc.	 	Delaware, USA
	NS US Holding, Inc.	 	Delaware, USA
	Herbal Brands, Inc.	 	Delaware, USA
	1255096 B.C. Ltd.	 	British Columbia, Canada
	Northern Swan International, Inc.	 	British Columbia, Canada
	Northern Swan Management, Inc.	 	British Columbia, Canada
	Northern Swan Deutschland Holding, Inc.	 	British Columbia, Canada
	Northern Swan Portugal Holdings, Inc.	 	British Columbia, Canada
	Clever Leaves Portugal Unipessoal LDA	 	Portugal
	Clever Leaves II Portugal Cultivation SA	 	Portugal
	NS Herbal Brands, International, Inc.	 	British Columbia, Canada
	Herbal Brands, Ltd.	 	United Kingdom
	Eagle Canada Holdings, Inc.	 	British Columbia, Canada
	Clever Leaves UK Limited	 	United Kingdom
	Ecomedics S.A.S.	 	Colombia
	Northern Swan Europe, Inc.	 	British Columbia, Canada
	Nordschwan Holdings, Inc.	 	British Columbia, Canada
	Clever Leaves Germany GmbH	 	Germany

 

    34

     

    

 

EXHIBIT A

 

OFFICER’S CERTIFICATE

  

I, [name of executive
officer], the [title of executive officer] of Clever Leaves Holdings Inc. (the “Company”),
do hereby certify in such capacity and on behalf of the Company, and not in my personal capacity, pursuant to Section 7(n) of
the Equity Distribution Agreement dated as of January 14, 2022 (the “Distribution Agreement”) between the Company and
Canaccord Genuity LLC, to the best of my knowledge that:

 

(i) The
representations and warranties of the Company in Section 6 of the Distribution Agreement (A) to the extent such representations and warranties
are subject to qualifications and exceptions contained therein relating to materiality or Material Adverse Effect, are true and correct
on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations
and warranties that speak solely as of a specific date and which were true and correct as of such date, and (B) to the extent such representations
and warranties are not subject to any qualifications or exceptions, are true and correct in all material respects as of the date hereof
as if made on and as of the date hereof with the same force and effect as if expressly made on and as of the date hereof except for those
representations and warranties that speak solely as of a specific date and which were true and correct as of such date; and

 

(ii) The
Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied pursuant to the Distribution
Agreement at or prior to the date hereof.

 

	Date:	 		By:	 
	 	 	 	 	Name:
	 	 	 	 	Title:

 

 

35Exhibit 10.1

 

    

     

    

 

    

    
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