Document:

EX-10.2

 Exhibit 10.2 

CANNABIS WHEATON INCOME CORP. 

– and – 

SUNDIAL GROWERS INC. 
  

 
 NOTE PURCHASE
AGREEMENT 
  
  

February 16, 2018 
  

 Table of Contents 

 

							
	 1.  INTERPRETATION
	  	    	1   	   
			
	 1.1
	 	Definitions	  	 	1	 
			
	 1.2
	 	Statutes	  	 	1	 
			
	 1.3
	 	Entities	  	 	1	 
			
	 1.4
	 	Headings	  	 	1	 
			
	 1.5
	 	Gender; Number; and Including	  	 	2	 
			
	 1.6
	 	Calculation of Time	  	 	2	 
			
	 1.7
	 	Currency	  	 	2	 
			
	 1.8
	 	Invalidity of Provisions	  	 	2	 
			
	 1.9
	 	Entire Agreement	  	 	2	 
			
	 1.10
	 	Waiver, Amendment	  	 	2	 
			
	 1.11
	 	Governing Law	  	 	2	 
			
	 1.12
	 	Legal Counsel	  	 	3	 
			
	 1.13
	 	Knowledge	  	 	3	 
			
	 1.14
	 	Schedules	  	 	3	 
			
	 1.15
	 	Paramountcy	  	 	3	 
		
	 2.  TERMS OF THE NOTE
	  	 	3	 
			
	 2.1
	 	Principal Amount of Note	  	 	3	 
			
	 2.2
	 	Form of Note	  	 	4	 
			
	 2.3
	 	Maturity Date	  	 	4	 
			
	 2.4
	 	Mutilation, Loss, Theft or Destruction	  	 	4	 
		
	 3.  REPAYMENT OF NOTE
	  	 	4	 
			
	 3.1
	 	Repayment of Note	  	 	4	 
			
	 3.2
	 	Maturity Penalty	  	 	5	 

							
	 3.3
	 	Prepayment of Note	  	 	5	 
			
	 3.4
	 	Taxes	  	 	5	 
			
	 3.5
	 	Grossing-Up	  	 	5	 
			
	 3.6
	 	Security	  	 	5	 
		
	 4.  REPRESENTATIONS AND WARRANTIES
	  	 	6	 
			
	 4.1
	 	Representations and Warranties of Sundial	  	 	6	 
		
	 5.  COVENANTS OF SUNDIAL
	  	 	12	 
			
	 5.1
	 	Positive Covenants	  	 	12	 
			
	 5.2
	 	Negative Covenants	  	 	13	 
		
	 6.  CLOSING
	  	 	14	 
			
	 6.1
	 	Closing Date	  	 	14	 
			
	 6.2
	 	Closing Deliverables of Sundial prior to the Advance of the Principal Amount	  	 	14	 
			
	 6.3
	 	Closing Deliverables of the Company prior to the Advance of the Principal Amount	  	 	15	 
		
	 7.  REPORTING
	  	 	15	 
			
	 7.1
	 	Reporting Obligations	  	 	15	 
		
	 8.  RECORD KEEPING AND AUDIT RIGHTS
	  	 	15	 
			
	 8.1
	 	Required Records	  	 	16	 
			
	 8.2
	 	Record Retention	  	 	16	 
			
	 8.3
	 	Audit Rights	  	 	16	 
		
	 9.  CONFIDENTIAL INFORMATION
	  	 	17	 
			
	 9.1
	 	Confidentiality	  	 	17	 
			
	 9.2
	 	Public Statements	  	 	17	 
		
	 10.  EVENTS OF DEFAULT
	  	 	18	 
			
	 10.1
	 	Events of Default	  	 	18	 

							
			
	 10.2
	 	Effect of Event of Default	  	 	18	 
			
	 10.3
	 	Waiver of an Event of Default	  	 	19	 
		
	 11.  RISK MANAGEMENT
	  	 	19	 
			
	 11.1
	 	Indemnification of the Company	  	 	19	 
			
	 11.2
	 	Subrogation	  	 	19	 
			
	 11.3
	 	Losses	  	 	19	 
			
	 11.4
	 	Change in Law	  	 	20	 
			
	 11.5
	 	Serious Adverse Reaction and Recall	  	 	20	 
			
	 11.6
	 	Notice of Claim	  	 	21	 
			
	 11.7
	 	Procedure for Indemnification	  	 	21	 
		
	 12.  DISPUTE RESOLUTION
	  	 	23	 
			
	 12.1
	 	Arbitration Procedures	  	 	23	 
			
	 12.2
	 	Continued Performance	  	 	25	 
			
	 12.3
	 	Proceedings Confidential	  	 	25	 
		
	 13.  GENERAL MATTERS
	  	 	25	 
			
	 13.1
	 	Enurement	  	 	25	 
			
	 13.2
	 	Assignment	  	 	25	 
			
	 13.3
	 	Notices	  	 	25	 
			
	 13.4
	 	Third Party Beneficiaries	  	 	26	 
			
	 13.5
	 	Disclaimer of Other Warranties	  	 	26	 
			
	 13.6
	 	Language	  	 	26	 
			
	 13.7
	 	Further Assurances	  	 	26	 
			
	 13.8
	 	Effective Annual Rate	  	 	27	 
			
	 13.9
	 	Counterparts	  	 	27	 

  

 NOTE PURCHASE AGREEMENT 

This Note Purchase Agreement (the “Agreement”) is entered into this 16th day of
February, 2018 between CANNABIS WHEATON INCOME CORP., a corporation existing under the laws of British Columbia with its registered office at 1055 West Hastings Street, Vancouver, BC V6E 2E9 (the “Company”) and SUNDIAL
GROWERS INC., a corporation existing under the laws of Alberta with its registered office at Site 4, Box 17, RR1, Airdrie, AB T4B 2A3 (“Sundial” collectively with the Company, the “Parties” and each a
“Party”). 
 WHEREAS: 
  

	A.	 Sundial is a Licensed Producer who has received its cultivation license for its facility located near Airdrie,
Alberta (the “Existing Facility”) and Sundial wishes to fund the construction of a new cultivation facility to be located in the Town of Olds, Alberta (the “Cultivation Facility”); 

 

	B.	 The Company wishes to provide a loan to Sundial to fund the construction of the Cultivation Facility by way of
an instrument evidencing a debt obligation repayable by either the delivery of product or the payment of a buy back amount (the “Note”) subject to the terms and conditions set forth in this Agreement (the
“Transaction”); 

 NOW THEREFORE, in consideration of the mutual promises and undertakings set forth in this
Agreement, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto agree as follows: 
  

	1.	 INTERPRETATION 

 

	1.1	 Definitions 

In this Agreement, capitalized terms not otherwise defined herein shall have the meanings ascribed in Schedule “A” attached hereto. 

 

	1.2	 Statutes 

Unless otherwise specified, references in this Agreement to a statute refers to such statute as it may be amended, or to any restated legislation of comparable
effect. 
  

	1.3	 Entities 

A reference to an entity includes any entity that is a successor to such entity. 
  

	1.4	 Headings 

The division of this Agreement into articles, sections or subsections and the insertion of headings used throughout this Agreement are solely for convenience
of reference and are not to be used as an aid in the interpretation of this Agreement. The words “Article” or “Section” followed by a number or letter refers to the specified Article or Section of this Agreement. 

	1.5	 Gender; Number; and Including 

In this Agreement, unless the context otherwise requires, words importing the singular include the plural and vice versa and words importing gender include all
genders. The word “include”, “includes” or “including” shall be interpreted on an inclusive basis and shall be deemed to be followed by the words “without limitation”. 

 

	1.6	 Calculation of Time 

Unless otherwise specified, time periods within or following which any payment is to be made or act is to be done shall be calculated by excluding the day on
which the period commences and including the day which ends the period and by extending the period to the next Business Day following if the last day of the period is not a Business Day. 

 

	1.7	 Currency 

All amounts in this Agreement are stated and shall be paid in Canadian dollars. 
  

	1.8	 Invalidity of Provisions 

Each of the provisions contained in this Agreement are distinct and severable and a declaration of invalidity or unenforceability of any such provision or part
thereof by a court of competent jurisdiction shall not affect the validity or enforceability of any other provision hereof. 
  

	1.9	 Entire Agreement 

This Agreement and any other documents required to be delivered pursuant to this Agreement constitute the entire agreement between the Parties and set out all
of the covenants, promises, warranties, representations, conditions and agreements between the Parties regarding the subject matter of this Agreement and supersede all prior agreements, understandings, negotiations and discussions whether oral or
written, pre-contractual or otherwise. There are no covenants, promises, warranties, representations, conditions, understandings or other agreements, whether oral or written,
pre- contractual or otherwise, express, implied or collateral between the Parties in connection with the subject matter of this Agreement except as specifically set forth in this Agreement and any document
required to be delivered pursuant to this Agreement. 
  

	1.10	 Waiver, Amendment 

Except as expressly provided in this Agreement, no amendment or waiver of this Agreement, shall be binding unless executed in writing by each Party. No waiver
or any provision of this Agreement shall constitute a waiver of any other provision nor shall any waiver of any provision of this Agreement constitute a continuing waiver unless otherwise expressly provided. 

 

	1.11	 Governing Law 

This Agreement, the rights and obligations of the Parties under this Agreement, and any claim or controversy directly or indirectly based upon or arising out
of this Agreement, the transactions contemplated by this Agreement (whether based in contract, tort or any other theory), including all matters of construction, validity and performance, shall in all respects be governed by, interpreted, construed
and determined in accordance with, the laws of the Province of Ontario and the federal laws of Canada applicable therein, without regard to the conflicts of law principles thereof. 

  
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	1.12	 Legal Counsel 

The Parties acknowledge that their respective legal counsel have participated in settling, or have reviewed the provisions of, this Agreement and the Parties
hereby agree that any rule of construction to the effect that any ambiguity is to be resolved against the drafting Party shall not be applicable in the interpretation of this Agreement. 

 

	1.13	 Knowledge 

Any reference herein to “Sundial’s knowledge” or “the knowledge of Sundial” or that is otherwise expressed to be limited in scope to
matters known to Sundial, or of which Sundial is aware, will mean the actual knowledge of the Specified Persons. 
  

	1.14	 Schedules 

The following Schedules are incorporated into and form part of this Agreement: 

Schedule “A” – Definitions 

Schedule “B” – Form of Note 

Schedule “C” – Company Wire Instructions 

Schedule “D” – Disclosure Schedule 
  

	1.15	 Paramountcy 

In the event of any inconsistency between the provisions of any Article or Section of this Agreement and the provisions of: (a) the Schedules; or
(b) the Note, the provisions of this Agreement shall prevail to the extent of such inconsistency. 
  

	2.	 TERMS OF THE NOTE 

 

	2.1	 Principal Amount of Note 

 

	 	(a)	 Subject to the provisions hereof, the aggregate principal amount of the Note authorized to be advanced by the
Company to Sundial shall be $7,000,000 (the “Principal Amount”) and such Principal Amount shall be advanced by the Company upon, and subject to, the conditions and limitations herein set forth. 

 

	 	(b)	 Sundial hereby covenants and agrees that the Principal Amount shall be used to: (i) fund the construction
of the Cultivation Facility; and (ii) for working capital purposes, specifically related to the construction of the Cultivation Facility. 

  
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	2.2	 Form of Note 

The Note shall be substantially in the same form as the draft Note attached as Schedule “B” hereto. 

 

	2.3	 Maturity Date 

Subject to an extension of the Maturity Date (as defined below) pursuant to Section 3.2, the Payment Obligations shall be due and payable on the date that
is six months following the Closing Date (the “Maturity Date”). 
  

	2.4	 Mutilation, Loss, Theft or Destruction 

If the Note issued hereunder shall become mutilated or be lost, stolen or destroyed, Sundial shall issue a new Note upon surrender and cancellation of the
mutilated Note, or in the case of a lost, stolen or destroyed Note, upon receipt of an affidavit of loss from the Company in lieu of and in substitution for the same, and the substituted Note shall be entitled to the benefits of this Agreement. 

3. REPAYMENT OF NOTE 
  

	3.1	 Repayment of Note 

 

	 	(a)	 Subject to Section 3.1(c), on or before the Maturity Date, Sundial shall repay the Payment Obligations,
by: (i) the delivery of 3,500,000 Grams of Product (the “Total Product”); (ii) the payment of $7,840,000, being the product of $2.24 per Gram multiplied by the Total Product (the “Buy Back Amount”) to the
Company in accordance with the instructions set out in Schedule “C” hereto; or (iii) upon Sundial providing the Company with 90 days advance written notice of its intention to repay any portion of the Payment Obligations with a
combination of subparagraphs (i) and (ii) above such that the Company receives cash and Product (which shall be valued at $2.24 per Gram) representing an aggregate value equivalent to the Buy Back Amount, to the Company in accordance with the
instructions set out in Schedule “C” hereto. 

  

	 	(b)	 In the event of the delivery of the Total Product, Sundial shall, at its sole expense, comply with all
information, delivery, branding and packaging requirements as instructed by the Company in writing, including, without limitation, the delivery of, all or part, of the Total Product to any Licensed Producer or Persons who are otherwise permitted to
purchase the Products under the ACMPR and Applicable Laws. 

  

	 	(c)	 Sundial’s ability to satisfy the Payment Obligations by the delivery of the Total Product shall
automatically cease on the Business Day following the Maturity Date. 

  
 4 

	3.2	 Maturity Penalty 

 

	 	(a)	 If the Payment Obligations are not repaid in full on or prior to the Maturity Date, Sundial shall have the
option to extend the Maturity Date by a further six months (the “Additional Term”) upon paying the Company $840,000 (the “Maturity Penalty”). The Maturity Penalty shall be payable to the Company prior to the
commencement of the Additional Term in accordance with the instructions set out in Schedule “C” hereto. 

  

	 	(b)	 On or before the expiry of the Additional Term, Sundial shall repay the Payment Obligations by the payment of
the Buy Back Amount to the Company in accordance with the instructions set out in Schedule “C” hereto. 

  

	3.3	 Prepayment of Note 

Sundial shall not be entitled to prepay, all or any part, of the Payment Obligations without the prior written consent of the Company, such consent not to be
unreasonably withheld. For greater certainty, the prepayment by Sundial of, all or any part, of the Payment Obligations shall not result in any reduction of the Payment Obligations. 

 

	3.4	 Taxes 

Sundial shall be responsible for all Taxes, deductions and remittances associated with all payments hereunder, other than any applicable Taxes otherwise
payable by the Company in respect of income or any gain realized by the Company in respect of such payments. 
  

	3.5	 Grossing-Up 

Upon notice supported by reasonable evidence provided to Sundial, Sundial shall increase the amount of any payment for which it is required to withhold or
deduct any sum under any Applicable Law, whether on account of Taxes, commissions or otherwise. The amount of any such increase will ensure that the Company will receive, after the sum has been deducted or withheld, the amount that it would have
received for such payment had no sum been deducted or withheld. 
  

	3.6	 Security 

  

	 	(a)	 Sundial agrees to execute and deliver a general security agreement (the “GSA”) creating a
First-Ranking Security Interest in respect of its present and future property, assets and undertaking to secure the payment and performance of its obligations in respect of this Agreement and the Note to the Company, subject to subparagraph 3.6(c)
below. 

  

	 	(b)	 The Security shall be in the form and substance satisfactory to the Company in its sole discretion. The
Security may be registered by the Company, at its sole expense, where necessary or desirable to record and perfect the charges contained therein, at any time and without further notice to Sundial. 

  
 5 

	 	(c)	 The Company agrees to enter into a subordination and postponement (the “ATB Subordination”)
whereby it will subordinate the Security in favour of ATB Financial up to a maximum aggregate amount of $30,000,000, but will rank in priority to 2082033 Alberta Ltd. (“208 Co”), provided that, the terms and conditions of the ATB
Subordination shall be in the form and substance satisfactory to the Company, acting reasonably. 

  

	 	(d)	 Sundial shall cause 208 Co to enter into a subordination and postponement (the “CBW
Subordination”) whereby it will subordinate all existing and future interests in Sundial in favour of the Company. 

  

	4.	 REPRESENTATIONS AND WARRANTIES 

 

	4.1	 Representations and Warranties of Sundial 

Sundial hereby represents and warrants to and in favour of the Company as follows, and acknowledges that the Company is relying upon the following
representations and warranties in connection with its execution, delivery and performance of this Agreement: 
  

	 	(a)	 Incorporation; Capacity and Authority. Sundial is duly incorporated, continued or amalgamated and
validly existing under the laws of the jurisdiction in which it was incorporated, continued or amalgamated, as the case may be, and has all requisite corporate power and authority and is duly qualified and holds all necessary permits, licenses and
Authorizations necessary or required to carry on its business as now conducted and to own, lease or operate its properties and assets, and no steps or proceedings have been taken by any Person, voluntary or otherwise, requiring or authorizing its
dissolution or winding up. 

  

	 	(b)	 Execution and Binding Obligation. This Agreement has been duly authorized, executed and delivered by
Sundial and upon such execution and delivery shall constitute a valid and binding obligation of Sundial and shall be enforceable against Sundial in accordance with its terms, except as enforcement thereof may be limited by bankruptcy, insolvency,
reorganization, moratorium and other laws relating to or affecting the rights of creditors generally and except as limited by the application of equitable principles when equitable remedies are sought, and by the fact that rights to indemnity,
contribution and waiver, and the ability to sever unenforceable terms, may be limited by Applicable Law. 

  

	 	(c)	 No Conflict. The execution and delivery of this Agreement, the performance by Sundial of its obligations
hereunder and the consummation of the transactions contemplated hereby and thereby, do not and will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under (whether after notice or
lapse of time or both): (i) any Applicable Laws; (ii) Sundial’s constating documents, by- laws or resolutions which are in effect at the date hereof; (iii) any mortgage, note, indenture,
contract, agreement, instrument, lease or other document to which Sundial is a party or by which it is bound; or (iv) any judgment, decree or order binding either Sundial or its property and assets. 

  
 6 

	 	(d)	 Subsidiaries. 

Other than as set out in Section 4.1(d) of Schedule “D”, Sundial has no direct or indirect subsidiaries or any investments or
proposed investments in any Person. 
  

	 	(e)	 No Indebtedness. 

 

	 	(i)	 Other than as set out in Section 4.1(e)(i) of Schedule “D”, there are no credit agreements,
promissory notes, bonds, mortgages, indentures and other agreements and instruments pursuant to which any Indebtedness of Sundial is outstanding or may be incurred. 

 

	 	(ii)	 Sundial has not guaranteed nor intends to guarantee (whether directly or indirectly, endorsed, co-made, discounted, or sold with recourse) any Indebtedness of any Person. 

  

	 	(f)	 Compliance with Laws. 

 

	 	(i)	 Sundial has conducted and is conducting its business in compliance in all material respects with all Applicable
Laws (including all Environmental Laws) of each jurisdiction in which it carries on business and Sundial holds all requisite Authorizations necessary or appropriate for carrying on its business as currently carried on, and all such Authorizations
are valid and subsisting and in good standing in all material respects. Without limiting the generality of the foregoing, Sundial has not received written notice of non-compliance, nor does it know of, nor
have reasonable grounds to know of, any facts that could give rise to a notice of material non-compliance with any such Applicable Laws or Authorizations. 

 

	 	(g)	 Required Authorizations. 

 

	 	(i)	 No filing with, notice to, or Authorization of any Governmental Authority is required on the part of Sundial as
a condition to the completion of the Transaction or the transactions contemplated by this Agreement. 

  

	 	(ii)	 There is no requirement to obtain any Authorization of, or provide notice to, a party under any contract to
which Sundial is a party, to complete the Transaction or the transactions contemplated by this Agreement. 

  

	 	(h)	 Authorizations for Conduct of Business. Sundial is qualified, licensed or registered to carry on its
business in all jurisdictions in which it is currently operating. Sundial has all Authorizations which are necessary for it to conduct its business as presently conducted. Such Authorizations are valid, subsisting and in good standing in all
material respects and there are no outstanding material defaults or breaches under them. No event has occurred that, with or without notice or lapse of time or both, has or would reasonably be expected to result in the revocation, suspension, lapse
or limitation of Sundial’s current Authorizations. 

  
 7 

	 	(i)	 Non-Arm’s Length Transactions. 

Other than as set out in Section 4.1(i) of Schedule “D”, Sundial is not a party to any contract with any Person not dealing at
arm’s length (within the meaning of the Income Tax Act (Canada)) with Sundial. 
  

	 	(j)	 Ownership of Assets; Specific Permitted Liens. Sundial owns, possesses and has a good and marketable
title to the Collateral free and clear of any and all Liens except for Permitted Liens. Sundial has no commitment or obligation (contingent or otherwise) to grant any Liens except for Permitted Liens. No event has occurred which constitutes, or
which with the giving of notice, lapse of time or both would constitute, a material default under any Permitted Lien. Section 4.1(j) of Schedule “D” contains a true and complete list of the Permitted Liens. 

 

	 	(k)	 Properties. 

  

	 	(i)	 Legal and Beneficial Ownership – Sundial holds legal and beneficial title to the Properties. All
Collateral of Sundial is located on the Properties. 

  

	 	(ii)	 Title – Sundial has good, valid and marketable title to the Properties, free and clear of all
encumbrances of every kind and nature whatsoever, save and except the Permitted Encumbrances. There are no other Encumbrances nor any agreements which would be binding upon Sundial other than the Permitted Encumbrances. 

 

	 	(iii)	 Compliance with Laws – Sundial has not received any work orders, deficiency notices, notices of
violation or other notices of non-compliance regarding all or any of the Properties issued pursuant to any federal, provincial or municipal laws, by-laws, regulations,
ordinances, codes and/or restrictions. 

  

	 	(iv)	 Property Taxes – All municipal taxes, local improvement taxes, rates, development charges, school
and water rates and charges, levies and assessments whatsoever due and owing in respect of the Properties have been paid in full up to the Closing Date. 

  

	 	(v)	 Environmental Matters – (A) Sundial and the current use and condition of the Property has been and
is in compliance with all applicable Environmental Laws, and to the knowledge of Sundial, there are no facts which would give rise to non- compliance of Sundial with any Environmental Laws, either in the
conduct by Sundial of it business on the Properties, or in the current uses and conditions of any buildings or other improvements thereon; (B) there are no above-grade storage tanks or to the knowledge of Sundial any underground storage tanks
present within or upon any of the Properties, (C) to the knowledge of Sundial, there is no pending or threatened matter, act or fact which could cause Sundial, or any of the Properties, to no longer be in compliance with all applicable
Environmental Laws; and (D) the Properties are free of any explosives, radioactive materials, asbestos, urea formaldehyde foam insulation, 

  
 8 

 
hydrocarbon contaminants, underground storage tanks, pollutants, hazardous, corrosive or toxic substances, special waste or any other substance which is defined in or regulated pursuant to the
Environmental Laws, nor have any environmentally hazardous materials been used or stored in or on the Properties, which could result in violation of any Environmental Laws. 
  

	 	(l)	 Assets and Property. 

 

	 	(i)	 Other than the Collateral, no other property or assets are necessary for the conduct of the business of Sundial
as currently conducted in the Existing Facility or, to Sundial’s knowledge, as it is contemplated to be conducted at the Cultivation Facility. 

  

	 	(ii)	 Any and all of the agreements and other documents and instruments pursuant to which Sundial holds the property
and assets thereof are valid and subsisting agreements, documents and instruments in full force and effect, enforceable in accordance with the terms thereof, and such agreements, documents and instruments are in good standing. 

 

	 	(iii)	 There is no claim, or the basis for any claim, that would reasonably have a Material Adverse Effect on the
right of Sundial to use, transfer or otherwise exploit the Collateral. 

  

	 	(iv)	 Other than as set out in Section 4.1(k) of Schedule “D”, none of the Sundial Facilities (or any
interest in, or right to earn an interest in, any property) is subject to any right of first refusal or purchase or acquisition right and Sundial has no responsibility or obligation to pay any commission, royalty, license fee or similar payment to
any Person with respect to the real property and material assets thereof. 

  

	 	(m)	 Litigation and Proceedings. 

 

	 	(i)	 There are no actions, suits, judgments, investigations or proceedings of any kind whatsoever outstanding,
pending or, to Sundial’s knowledge, threatened against or affecting Sundial, or the directors, officers or employees thereof, at law or in equity or before or by any commission, board, bureau or agency of any kind whatsoever and, to
Sundial’s knowledge, there is no basis therefor and Sundial is not subject to any judgment, order, writ, injunction, decree, award, rule, policy or regulation of any Governmental Authority, in each case which, either separately or in the
aggregate, would reasonably have a Material Adverse Effect on Sundial or that would reasonably be expected to have a Material Adverse Effect on the ability of Sundial to perform its obligations under this Agreement. 

  
 9 

	 	(ii)	 No legal or governmental proceedings or inquiries are pending to which Sundial is a party or to which the
property thereof is subject that would result in the revocation or modification of any Authorization to conduct the business now owned or operated by Sundial which, if the subject of an unfavourable decision, ruling or finding would reasonably be
expected to have a Material Adverse Effect on Sundial, and, to Sundial’s knowledge no such legal or governmental proceedings or inquiries have been threatened against or are contemplated with respect to Sundial or its properties and assets.

  

	 	(n)	 No Violation or Default. 

 

	 	(i)	 Sundial is not in violation of its constating documents or in default in any respect in the performance or
observance of any material obligation, agreement, covenant or condition contained in any contract, indenture, trust deed, mortgage, loan agreement, note, lease, license or other agreement or instrument to which it is a party or by which it or its
property or assets may be bound. 

  

	 	(ii)	 No counterparty to any obligation, agreement, covenant or condition contained in any material contract,
indenture, trust deed, mortgage, loan agreement, note, lease or other agreement or instrument to which Sundial is a party is, to Sundial’s knowledge, in default in the performance or observance thereof. 

 

	 	(o)	 Taxes. All Taxes due and payable by Sundial have been paid. All tax returns, declarations, remittances
and filings required to be filed by Sundial have been filed with all appropriate Governmental Authorities and all such returns, declarations, remittances and filings are complete and accurate in all material respects and no material fact or facts
have been omitted therefrom which would make any of them misleading. No examination of any Tax return of Sundial is currently in progress and there are no issues or disputes outstanding with any Governmental Authority respecting any Taxes that have
been paid, or may be payable, by Sundial which if adversely determined would reasonably be expected to have a Material Adverse Effect on Sundial. 

  

	 	(p)	 Employees. Sundial is in compliance in all material respects with all Applicable Laws respecting
employment and employment practices, terms and conditions of employment and wages and hours. Sundial is currently in compliance in all material respects with all workers’ compensation, occupational health and safety and similar legislation,
including payment of all amounts owing thereunder, and there are no pending claims or outstanding orders under applicable workers’ compensation legislation, occupational health and safety or similar legislation nor has any event occurred which
may give rise to any such claim. 

  

	 	(q)	 Insurance. Sundial maintains insurance by insurers of recognized financial responsibility, against such
losses, risks and damages to its assets (including biological assets) in such amounts as are customary for the business in which they are engaged and on a basis consistent with reasonably prudent persons in

  
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comparable businesses, and all of the policies in respect of such insurance coverage, fidelity or surety bonds insuring Sundial, and its directors, officers and employees, and Sundial ‘s
assets, are in good standing and in full force and effect in all respects, and not in default. Sundial is in compliance with the terms of such policies and instruments and there are no claims by Sundial under any such policy or instrument as to
which any insurance company is denying liability or defending under a reservation of rights clause; to Sundial’s knowledge there is no reason that it will not be able to renew such existing insurance coverage as and when such coverage expires
or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect, and Sundial has not failed to promptly give any notice of any claim thereunder.

  

	 	(r)	 Compliance under ACMPR. 

 

	 	(i)	 Sundial is in compliance with the terms and conditions of the ACMPR License, except where the failure to so
comply would not have a Material Adverse Effect, and to Sundial’s knowledge there is no basis upon which the renewal of such ACMPR License would be denied. 

 

	 	(ii)	 All starting materials and genetics for Sundial’s Products have been received and cultivated in accordance
with the ACMPR and Applicable Laws. 

  

	 	(iii)	 To Sundial’s knowledge there is no basis upon which an Authorization to sell Products from Health Canada
under the ACMPR License would be denied. 

  

	 	(iv)	 Except as disclosed to the Company in writing, Sundial has not received any notice or communication from any
customer, supplier, Health Canada, Governmental Authority or Person alleging a default, or requesting a modification or clarification to any aspect of the ACMPR License. To Sundial’s knowledge, there is no basis for Sundial to suspect any such
allegation discussed in this Section from any Person. 

  

	 	(v)	 All Product research and development activities, including quality assurance, quality control, testing, and
research and analysis activities, conducted by Sundial is being conducted in accordance and compliance with (i) appropriate industry, laboratory safety, management and training standards applicable to Sundial’s current business; and
(ii) all standard operating procedures and good production practices approved by Health Canada under the ACMPR License. 

  

	 	(s)	 Anti-Corruption and Anti-Bribery Laws. Sundial is not, to Sundial’s knowledge, aware of or has
taken any action, directly or indirectly, that could result in a violation by such Persons of applicable laws relating to terrorism, money laundering and proceeds of crime, including the Proceeds of Crime (Money

  
 11 

	 	
Laundering) and Terrorist Financing Act (Canada), the Corruption of Foreign Public Officials Act (Canada), the Foreign Corrupt Practices Act of 1977 (United States),
as amended, and the rules and regulations thereunder or any other similar anticorruption law to which Sundial may be subject (collectively, the “Acts”), including making any bribe, rebate, payoff, influence payment, kickback or
other unlawful payment or making use of the mails or any means or instrumentality of interstate commerce in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or
authorization of the giving of anything of value or benefit to any “foreign official” or “public official” (as such terms are defined in the applicable Acts) or any foreign political party or official thereof or any candidate for
foreign political office, or any third party or any other Person to the benefit of the foregoing, in contravention of the Acts, and Sundial has conducted its businesses in compliance with the Acts and will implement and maintain policies and
procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith. 

  

	 	(t)	 No Finder’s Fees. There is no Person acting or, to Sundial’s knowledge, purporting to act at
the request or on behalf of Sundial that is entitled to any brokerage or finder’s fee or other compensation in connection with the Transaction or the transactions contemplated by this Agreement. 

 

	 	(u)	 Books and Records. The minute books and corporate records of Sundial have been maintained in accordance
with commercially reasonable business practices and are true, complete and accurate in all material respects. 

  

	 	(v)	 Material Facts. All information which has been prepared by Sundial relating to its business, property
and liabilities and provided or made available to the Company is, as of the date of such information, true and correct in all material respects, taken as whole, and no fact or facts have been omitted therefrom which would make such information
materially misleading. 

  

	5.	 COVENANTS OF SUNDIAL 

Sundial hereby covenants and agrees with the Company as follows, and acknowledges that the Company is relying upon the following covenants in connection with
its execution, delivery and performance of this Agreement and until Payment Obligations are repaid in full: 
  

	5.1	 Positive Covenants 

 

	 	(a)	 Sundial shall provide, in a timely manner, the Company with any comments, reports, responses or similar
feedback received from a Governmental Authority with respect to the Sundial Facilities and the ACMPR License and any application or amendment to an application for development approvals, Authorizations or the ACMPR License. 

  
 12 

	 	(b)	 Sundial shall conduct its business in the Ordinary Course and in compliance with all Applicable Laws (including
Environmental Laws) of each jurisdiction in which it carries on business. 

  

	 	(c)	 Sundial shall take all actions necessary to ensure that all Products produced at the Sundial Facilities shall
satisfy all applicable regulatory requirements under the ACMPR and any other Applicable Laws, including in regards to requirements relating to microbial and chemical tolerance limits, use of pest control products and the use of additives etc.

  

	 	(d)	 Sundial will implement and maintain adequate security measures and safeguards to protect personal information
collected from registered patients and customers and other parties from illegal or unauthorized access or use by its personnel or third parties or access or use by its personnel or third parties in a manner that violates the privacy rights of third
parties. Sundial will comply, in all material respects, with all applicable privacy and consumer protection legislation and will not collect, receive, store, disclose, transfer, use or permit unauthorized access to any information protected by
privacy laws, whether collected directly or from third parties, in an unlawful manner. Sundial will take all commercially reasonable steps to protect personal information against loss or theft and against unauthorized access, copying, use,
modification, disclosure or other misuse. 

  

	 	(e)	 Sundial will pay all principal and all other amounts due hereunder at the times and in the manner specified
herein. 

  

	 	(f)	 Sundial will fulfill all covenants and obligations required to be performed by it under this Agreement and any
other agreement or undertaking now or hereafter made between the Parties. 

  

	 	(g)	 Sundial will provide prompt notice to the Company of each of the following: (i) the occurrence of an Event
of Default; (ii) the incorrectness of any representation or warranty contained herein in any material respect; (iii) any material contravention of or material non-compliance by Sundial with any terms
and conditions of this Agreement and any other agreement delivered in connection with the transactions contemplated by this Agreement; (iv) any Material Adverse Effect or Material Adverse Change; (v) litigation affecting Sundial or the
Sundial Facilities; (vi) any material labour dispute affecting Sundial; and (vii) any material notices or material communications received from Health Canada, any Governmental Authority or Person. 

 

	5.2	 Negative Covenants 

 

	 	(a)	 Sundial shall not, and shall not permit any of its Affiliates to, do any of the following:

  

	 	(i)	 create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly,
liable with respect to any Indebtedness; 

  
 13 

	 	(ii)	 create, incur, assume, or suffer to exist, directly or indirectly, any Encumbrance on or with respect to any of
its assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom; or 

  

	 	(iii)	 grant or suffer to exist any Liens in respect of any of its property and assets, other than the Permitted
Liens. 

  

	 	(b)	 Sundial shall not consolidate or combine with any Person, undergo a Change of Control, convey, transfer,
license, sell, lease or otherwise dispose of all or substantially all of the properties and assets of Sundial to any Person without the counterparty to such transaction or combination delivering a signed acknowledgement to the Company, in a form
reasonably satisfactory to the Company, acknowledging and assuming all right and obligations under this Agreement and the Note as if such counterparty were an original party hereto and thereto. 

 

	 	(c)	 Sundial shall not, without the prior written consent of the Company (not to be unreasonably withheld or
delayed): 

  

	 	(i)	 adopt a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other
reorganization; or 

  

	 	(ii)	 enter into any agreement, commitment or understanding (whether written or oral) with respect to making a
material change in the operation of its businesses. 

  

	 	(d)	 Sundial shall not directly or indirectly sell or otherwise dispose of any the Collateral, other than in the
Ordinary Course. 

  

	 	(e)	 Sundial shall not use the proceeds of any amounts advanced by the Company for any purposes other than those
expressly contemplated in this Agreement. 

  

	6.	 CLOSING 

 

	6.1	 Closing Date 

The “Closing Date” shall be February 16, 2018 being, the date upon which the Principal Amount will be advanced by the Company to Sundial.

  

	6.2	 Closing Deliverables of Sundial prior to the Advance of the Principal Amount 

On or prior to the Closing Date, Sundial shall deliver to the Company: 
  

	 	(a)	 a certificate of status with respect to Sundial dated on or no more than one Business Day prior to the Closing
Date; 

  

	 	(b)	 an executed Note; 

  
 14 

	 	(c)	 an executed GSA; 

  

	 	(d)	 an executed undertaking re: subordination and postponement from 208 Co relating to the CBW Subordination;

  

	 	(e)	 a certificate from a senior officer of Sundial, dated as of the Closing Date, certifying: (i) the
constating documents of Sundial; (ii) resolutions of the board of directors authorizing the execution, delivery and performance of this Agreement, the Transaction and the transactions contemplated hereby and thereby; and (iii) the names,
positions and true signatures of the persons authorized to sign this Agreement on its behalf; and 

  

	 	(f)	 all other documents required to be delivered by Sundial pursuant to the provisions of this Agreement.

 Each of the foregoing deliveries is a condition of closing in favour of the Company and the Company will have no obligation to complete
the Transaction if each of such deliveries is not made at or prior to the Closing Date. 
  

	6.3	 Closing Deliverables of the Company prior to the Advance of the Principal Amount 

On or prior to the Closing Date, the Company shall deliver to Sundial: 
  

	 	(a)	 an executed counterpart of the Note; 

 

	 	(b)	 the Principal Amount by wire transfer to the account designated by Sundial in writing by no more than three
Business Days prior to the Closing Date; 

  

	 	(c)	 an executed undertaking re: subordination and postponement from the Company relating to the ATB Subordination;
and 

  

	 	(d)	 all other documents required to be delivered by the Company pursuant to the provisions of this Agreement.

 Each of the foregoing deliveries is a condition of closing in favour of Sundial and Sundial will have no obligation to comply with the
provisions of this Agreement and the Note if each of such deliveries is not made at or prior to the Closing Date. 
  

	7.	 REPORTING 

 

	7.1	 Reporting Obligations 

Until the Payment Obligations are repaid in full, Sundial shall provide the Company with the following documents, reports and data monthly (collectively, the
“Reports”): 
  

	 	(a)	 Any reports, notices, material correspondence or other documentation provided to, received or requested by
Health Canada, including (i) inspection reports; (ii) Recall Reports; (iii) Summary Reports; (iv) case reports; and (v) notices of license issuance or renewal; and (vi) notices of license refusal or revocation.

  
 15 

	 	(b)	 In the event that any such Reports are: 

 

	 	(i)	 being provided to Health Canada by Sundial, Sundial shall provide the Company with a copy of the final
submission to Health Canada; and 

  

	 	(ii)	 received by Sundial, from Health Canada, Sundial shall provide a copy of such Reports to the Company as soon as
practicable, and in any event, no later than five Business Days after such Report is received by Sundial. 

  

	8.	 RECORD KEEPING AND AUDIT RIGHTS 

 

	8.1	 Required Records 

With respect to its Products and the transactions contemplated herein, Sundial shall maintain (collectively, the “Records”): 

 

	 	(a)	 all such documents, records and other information as required by the ACMPR and other Applicable Law, including
copies of all analytical tests performed by or on behalf of Sundial on the Product, copies Sundial’s SOPs, and any amendments thereto, and copies of Sundial’s records demonstrating that the Product was produced, packaged and labeled in
accordance with the ACMPR or other Applicable Law; and 

  

	 	(b)	 all such additional documents, books, records and other information as required to comply with the provisions
of this Agreement. 

  

	8.2	 Record Retention 

Sundial shall retain the Records for a period equal to the longer of: (i) the retention period for such Records required by Applicable Law; or
(ii) two years from the date of the Maturity Date or the Additional Term. 
  

	8.3	 Audit Rights 

The Company will have the right to inspect and audit the books and records of Sundial (in each instance an “Audit”) not more than once prior
to the Maturity Date in accordance with the following: 
  

	 	(a)	 the Company shall provide Sundial, as applicable, with at least five calendar days prior written notice of its
intention to conduct such Audit; 

  

	 	(b)	 to the extent permitted by Applicable Law, Sundial shall provide the Company and its external advisors, with
reasonable Access, during normal Business Days and hours, to any Sundial Facility and shall provide reasonable access to all Records for the purposes of conducting the Audit; and 

  
 16 

	 	(c)	 each Audit shall be conducted as efficiently as possible and with as little disruption to the business
operations of Sundial as reasonably possible. 

  

	9.	 CONFIDENTIAL INFORMATION 

 

	9.1	 Confidentiality 

The Parties shall treat all Confidential Information as confidential and may not either disclose Confidential Information or use it other than for bona fide
purposes connected with this Agreement or any other agreements or instruments to be executed and delivered pursuant to the terms hereof without the prior written consent of the other Parties, except that consent is not required for disclosure
to: 
  

	 	(a)	 an Affiliate of a Party or their respective directors, officers, or employees, as long as they in turn are
required to treat the Confidential Information as confidential on terms substantially the same as those set out in this Section 9.1; 

  

	 	(b)	 accountants, professional advisers and bankers and other lenders, whether current or prospective, as long as
they are subject to statutory professional secrecy rules or similar legal concepts under Applicable Laws or, in turn, are required to treat the Confidential Information as confidential on terms substantially the same as those set out in this
Section 9.1; 

  

	 	(c)	 any Governmental Authority having jurisdiction over a Party, to the extent legally required, and then only
after, to the extent permitted by law, informing the other Parties thereof and, to the extent possible, with sufficient notice in advance to permit the other Parties to seek a protective order or other remedy; 

 

	 	(d)	 any Person to the extent required by any Applicable Laws, judicial process or the rules and regulations of any
recognized stock exchange and then only subject to prior consultation with the other Parties; or 

  

	 	(e)	 any intended assignee of the rights and interests of a Party under this Agreement or to a Person intending to
acquire an interest in a Party to this Agreement as long as the intended assignee or acquirer in turn is required by that party to treat the Confidential Information as confidential in favour of the other Parties on terms substantially the same as
those set out in this Section 9.1. 

  

	9.2	 Public Statements 

No public announcement or statement concerning the execution and delivery of this Agreement and the transactions contemplated by this Agreement shall be made
by the Parties, their respective Affiliates or their respective Representatives without the prior written consent of the Parties unless such disclosure is required by Applicable Law. If such disclosure is required by Applicable Law, the Parties
shall use commercially reasonable good faith efforts to enable the other Parties to review and comment on such disclosure prior to the release thereof and, if such prior review and consultation is not possible, to give oral and written notice of
such disclosure immediately following the making of such disclosure. 

  
 17 

	10.	 EVENTS OF DEFAULT 

 

	10.1	 Events of Default 

Subject to Section 11.4 and the provisions herein, the occurrence of any one or more of the following events shall constitute an “Event of
Default” hereunder: 
  

	 	(a)	 Sundial is in breach of any payment or delivery obligations under this Agreement, the Note, the GSA or any
other agreement, document or instrument executed and delivered in connection therewith, and such breach is not cured within 10 calendar days following the date of receipt by Sundial of written notice from the Company describing the nature of such
breach; 

  

	 	(b)	 Sundial is in default in the observance or performance of any covenant or condition of this Agreement and such
breach is not cured within 15 calendar days following the date of receipt by Sundial of written notice from the Company describing the nature of such default; 

 

	 	(c)	 Sundial fails to discharge (or in the case of (iii) below, sufficiently amend, to the satisfaction of the
Company, acting reasonably, the Personal Property Security Act (Alberta) description to be limited to $350,000 held as cash collateral) the following registrations by the date which is 60 days following the Closing Date:

  

	 	(i)	 mortgage granted by Sundial in favour of Mountain View Credit Union (“MVCU”) registered
against descriptive plan 1710892; Block 1; Lot 13 as registration number [***]; 

  

	 	(ii)	 caveat regarding assignment of rents and Leases granted by the Sundial in favour of MVCU registered against
descriptive plan 1710892; Block 1; Lot 13 as registration number [***]; and 

  

	 	(iii)	 security agreement granted by Sundial in favour of MVCU and registered as registration number [***] at the
Alberta Personal Property Registry; or 

  

	 	(d)	 the commencement of any Bankruptcy Proceeding in respect of Sundial or any Affiliate thereof.

  

	10.2	 Effect of Event of Default 

 

	 	(a)	 Upon the occurrence of an Event of Default, the Company shall provide Sundial with written notice thereof (a
“Default Notice”), such Default Notice to contain sufficient detail of the Event of Default. 

  

	 	(b)	 Upon receipt of a Default Notice: (i) the Payment Obligations, together with all other amounts due
hereunder, shall immediately become due and payable; (ii) the Company shall be permitted to obtain or enforce payment of the Payment Obligations, together with any other amounts due hereunder by such proceedings authorized by this Agreement or
by law or equity as the Company shall deem expedient; and (iii) the Company shall be permitted to realize the Security against any portion or portions of the Payment Obligations without further notice or consent from Sundial.

  
 18 

	 	(c)	 Upon the occurrence and during the continuation of an Event of Default, all accelerated Payment Obligations
shall bear interest at the rate of 30% per annum in order to compensate the Company for the additional risk. 

  

	10.3	 Waiver of an Event of Default 

The Company, in its sole discretion, may waive any Event of Default in writing. No such act or omission of the Company shall extend to or be taken in any
manner whatsoever to affect any subsequent Event of Default or the rights resulting therefrom. 
  

	11.	 RISK MANAGEMENT 

 

	11.1	 Indemnification of the Company 

Subject in all cases to Section 11.3, Sundial (“Indemnifying Party”) agrees to indemnify, defend and hold harmless the Company, its
Representatives and their respective Affiliates (each, an “Indemnified Party”) from any and all Losses arising from or in connection with any of the following: 

 

	 	(a)	 any material inaccuracy of any representation or warranty given by the Indemnifying Party in this Agreement,
the Note or any agreement, instrument or document executed in connection with this Agreement; or 

  

	 	(b)	 any breach by the Indemnifying Party of any covenant, condition or agreement for which it is responsible for in
this Agreement, including any breach by the Indemnifying Party that was caused by or contributed to by any act or omission of its officers, directors, employees, agents, affiliates, representatives, successors, and assigns; or 

 

	 	(c)	 an Event of Default; or 

 

	 	(d)	 any Recall Expense. 

 

	11.2	 Subrogation 

[intentionally deleted] 
  

	11.3	 Losses 

The Parties agree that, in all cases: 
  

	 	(a)	 Subject to Section 11.3(b), in no event shall a Party be liable for indirect or consequential, exemplary,
punitive or special damages (relating to this Agreement or any other any agreement, instrument or document executed in connection with this Agreement even if such Party has been advised of the possibility of such damages in advance and whether such
losses arise in, under or pursuant to contract, tort, common law, equity, statute or otherwise). 

  
 19 

	 	(b)	 The limitations set forth in Section 11.3(a), shall not apply with respect to (i) any portion of
Losses that are found by final determination of an arbitrator to have resulted primarily and directly from the fraud or the gross negligence of the indemnifying Party or its officers, directors, employees, agents, affiliates, representatives,
successors or assigns; and (ii) any Recall Expense. 

  

	 	(c)	 The rights to indemnification under this Article 11 shall expire 24 months following any termination or expiry
of this Agreement. 

  

	11.4	 Change in Law 

 

	 	(a)	 If, at any time until the Payment Obligations are repaid in full, there is any change in Applicable Law with
which a Party is required to comply and, as a result of such compliance, such Party is no longer able to comply with one or more provisions of this Agreement (each such change, a “Change of Law”) the affected Party shall promptly
notify (a “Change of Law Notice”) in writing the non-affected Party of the Change of Law and any such notice shall contain a description of the Change of Law (with supporting documentation),
the exact obligations under this Agreement which the affected Party is delayed or prevented from performing as a result of such Change of Law (the “Affected Obligations”). 

 

	 	(b)	 The Parties will, in good faith, seek to agree on amendments (if any) to this Agreement necessary and
appropriate to take account of the Change of Law, so that this Agreement may continue in force. All such amendments (if any) shall be agreed to by the Parties no later than 60 calendar days from the date of the Change of Law Notice, or such later
date as the Parties may mutually agree in writing (the “Change Period”). 

  

	 	(c)	 During the Change Period the obligation of the affected Party to perform the Affected Obligations shall be
suspended and the affected Party shall not suffer or incur any liability to the non-affected Party or other Person in connection with its delayed or non- performance of
the Affected Obligations, provided that the affected Party has used and continues to use its commercially reasonable good faith efforts to minimize the impact of its delay or non-performance of the Affected
Obligations, including cooperating and collaborating with the non-affected Party to impose interim procedures or workarounds to minimize the impact of its delay or
non-performance of the Affected Obligations. 

  

	11.5	 Serious Adverse Reaction and Recall 

 

	 	(a)	 In the event that a client or customer of Sundial or the Company experiences a Serious Adverse Reaction to any
Lot or Batch of any Strain comprising any of the Product delivered to the Company hereunder, either Party whose client or customer has experienced the Serious Adverse Reaction shall promptly notify the other Party of the Serious Adverse Reaction.

  
 20 

	 	(b)	 Sundial shall indemnify the Company for all Losses arising from or in connection with any Recall (collectively,
the “Recall Expense”). The number of Grams which are subject to or affected by a Recall and the amount of the Recall Expense shall be added to the Payment Obligations. 

 

	 	(c)	 in the event that Sundial receives a request from the Minister for any Case Report, Summary Report, interim
Summary Report or any other information relating to any Adverse Reaction to any Lot or Batch of any Strain comprising any of the Product delivered to the Company hereunder: 

 

	 	(i)	 Sundial shall promptly notify the Company in writing and provide the Company with a copy of the Minister’s
request; and 

  

	 	(ii)	 Sundial shall use its commercially reasonable good faith efforts to promptly respond to the Minister’s
request. 

  

	11.6	 Notice of Claim 

If an Indemnified Party becomes aware of any act, omission or state of facts that may give rise to Losses in respect of which a right of indemnification is
provided for under Section 11.1, the Indemnified Party shall promptly give written notice thereof (a “Notice of Claim”), which notice shall specify whether the potential Losses arise as a result of a Direct Claim or a Third
Party Claim. Each Notice of Claim shall specify with reasonable particularity (to the extent that the information is available): 
  

	 	(a)	 the factual basis for the Claim, and any provisions of the Agreement, or of any Applicable Law, relied upon;
and 

  

	 	(b)	 the amount of the Claim, or, if an amount is not determinable, an approximate and reasonable estimate of the
potential Claim, 

 provided that the failure by an Indemnified Party to promptly provide a Notice of Claim shall not relieve or diminish
the Indemnifying Party from its indemnification obligations pursuant to Section 11.1 unless and only to the extent such failure or delay has prejudiced or could reasonably be expected to prejudice such Indemnifying Party’s ability to fully
respond or the amount of Losses. 
  

	11.7	 Procedure for Indemnification 

 

	 	(a)	 Direct Claims. Following receipt of notice of a Direct Claim, the Indemnifying Party shall have 90
calendar days to make such investigation of the Direct Claim as the Indemnifying Party considers necessary or desirable. For the purpose of such investigation, the Indemnified Party shall make available to the Indemnifying Party and its
Representatives the information relied upon by the Indemnified Party to substantiate the Direct Claim, together with all such other 

  
 21 

 
information as the Indemnifying Party may reasonably request. If the Indemnified Party and the Indemnifying Party agree at or prior to the expiration of such 90 calendar day period (or any
extension thereof mutually agreed to in writing by the Indemnified Party and the Indemnifying Party) as to the validity and amount of the Direct Claim, the Indemnifying Party shall promptly pay to the Indemnified Party the full agreed upon amount of
the Direct Claim, failing which, the Claim shall be settled in accordance with the dispute resolution provisions of this Agreement set out in Article 12 hereof. 
  

	 	(b)	 Third Party Claims. 

 

	 	(i)	 With respect to any Third Party Claim, the Indemnifying Party shall have the right, at its own expense, to
participate in or assume control of the negotiation, settlement or defence of the Third Party Claim and, in such event, the Indemnifying Party shall reimburse the Indemnified Party for all of the Indemnified Party’s out-of-pocket expenses as a result of such participation or assumption. If the Indemnifying Party elects to assume such control, the Indemnified Party shall have the right to
participate in the negotiation, settlement or defence of such Third Party Claim at its own expense and shall have the right to disagree on reasonable grounds with the selection and retention of legal counsel, in which case legal counsel satisfactory
to both the Indemnifying Party and the Indemnified Party shall be retained by the Indemnifying Party. 

  

	 	(ii)	 If the Indemnifying Party, having elected to assume control as contemplated in Section 11.7(b)(i),
thereafter fails to defend such Third Party Claim within a reasonable time, the Indemnified Party shall be entitled to assume such control and the Indemnifying Party shall be bound by the results obtained by the Indemnified Party with respect to
such Third Party Claim. 

  

	 	(iii)	 In the event that any Third Party Claim is of a nature such that the Indemnified Party is required by
Applicable Law to make a payment to any Third Party with respect to such Third Party Claim before the completion of settlement negotiations or related legal proceedings, the Indemnified Party may make such payment and the Indemnifying Party shall,
forthwith after demand by the Indemnified Party, reimburse the Indemnified Party for any such payment. If the amount of any liability under the Third Party Claim in respect of which such a payment was made, as finally determined, is less than the
amount which was paid by the Indemnifying Party to the Indemnified Party, the Indemnified Party shall, forthwith after receipt of the difference from the Third Party, pay such difference to the Indemnifying Party. 

 

	 	(iv)	 Except in the circumstances contemplated by Section 11.7(b)(ii), whether or not the Indemnifying Party
assumes control of the negotiation, settlement or defense of any Third Party Claim, the Indemnified Party shall not negotiate, settle, compromise or pay any Third Party Claim except with the prior written consent of the Indemnifying Party (which
consent shall not be unreasonably delayed or withheld). 

  
 22 

	 	(v)	 The Indemnified Party shall not permit any right of appeal in respect of any Third Party Claim to terminate
without giving the Indemnifying Party notice thereof and an opportunity to contest such Third Party Claim. 

  

	 	(vi)	 The Parties shall cooperate fully with each other with respect to Third Party Claims, shall keep each other
fully advised with respect thereto (including supplying copies of all relevant documentation promptly as it becomes available) and shall each designate a senior officer who will keep himself/herself informed about and be prepared to discuss the
Third Party Claim with his or her counterpart and with legal counsel at all reasonable times. 

  

	 	(vii)	 Notwithstanding anything to the contrary contained herein, the Indemnifying Party shall not settle any Third
Party Claim without the consent of the Indemnified Party unless the settlement: (A) includes a complete release of the Indemnified Party with respect to the Third Party Claim; and (B) contains no admission of fault or guilt on the part of
the Indemnified Party with respect to the Third Party Claims. 

  

	12.	 DISPUTE RESOLUTION 

 

	12.1	 Arbitration Procedures 

All disputes, controversies or claims arising out of, relating to, or in respect of this Agreement, including any issue regarding its existence, validity,
enforceability, interpretation, breach or termination (each a “Dispute”) shall be resolved in accordance with the provisions of this Agreement. 
  

	 	(a)	 Any Dispute that Parties are unable to amicably resolve or settle between themselves through negotiations
between the designated representatives or senior executives of Parties within 15 Business Days (or such longer period as the Parties may mutually agree to in writing) of a Party being provided notice of such Dispute (the “Consultation
Period”) shall be referred to and finally determined by final and binding arbitration. The arbitration shall be confidential and shall be conducted by one independent and impartial arbitrator selected in accordance with the provisions of
this Agreement (the “Arbitrator”). 

  

	 	(b)	 The arbitration shall be governed by the Arbitration Act, 1991 to the extent that such rules do not
conflict with this Section 12. 

  

	 	(c)	 The arbitration shall be seated in the City of Toronto and the arbitration agreement set forth in this
Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario. The language of the arbitration shall be English. 

  
 23 

	 	(d)	 Within 30 calendar days of the expiry of the Consultation Period, the Parties agree to jointly select the
Arbitrator who shall be trained in the laws of Ontario. The Arbitrator shall be impartial and independent of the Parties and shall be experienced and knowledgeable about the subject matter of the Dispute (generally and not as to the express facts
concerning the Dispute). If the Parties are unable to agree upon the Arbitrator, a Party may apply to elect an Arbitrator in accordance with the provisions of the Arbitration Act, 1991. 

 

	 	(e)	 It is specifically acknowledged and confirmed that any Dispute that cannot be resolved between the Parties
prior the expiry of the Consultation Period shall be submitted to arbitration irrespective of the magnitude thereof or the amount in question. 

  

	 	(f)	 The Arbitrator shall have jurisdiction: (i) to apply all Applicable Laws, common law and equity (including
the scope of the agreement to arbitrate, any statute of limitations, conflict of laws rules, tort claims and interest claims); and (ii) to make an award or awards in respect of interest and the payment of the costs of the arbitration (including
arbitrators’ fees and the legal costs of the Parties). The Arbitrator also may, where requested by a Party, determine the nature and extent of production of documents and oral depositions. 

 

	 	(g)	 The award of the Arbitrator shall be reduced to writing and be final and binding on the Parties and not subject
to any appeal (a “Final Determination”). Any monetary award shall be made and payable, free of any Taxes or other deduction, and shall bear interest from the date of any breach or other violation of this Agreement to the date on
which the award is paid, at a rate determined by the Arbitrator. 

  

	 	(h)	 Judgment upon the award(s) rendered by the Arbitrator may be entered and execution had in any court of
competent jurisdiction, or application may be made to such court for a judicial acceptance of the award and order of enforcement. 

  

	 	(i)	 Each Party shall bear its own expenses of preparing for and participating in connection with the arbitration,
including legal fees but the Party against whom judgment is rendered shall bear all legal fees of the Arbitrator. 

  

	 	(j)	 By agreeing to arbitration, the Parties do not intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction, pre-arbitral attachment or other order in aid of the arbitration proceedings and the enforcement of any award. Without prejudice to such provisional
remedies in aid of arbitration as may be available under the jurisdiction of a legal court, the Arbitrator shall have full authority to grant provisional remedies, statutory remedies and to award damages for the failure of the Parties to respect the
Arbitrator’s orders to that effect. 

 Nothing in this Agreement shall restrict or prohibit a Party from commencing arbitration at
any time, including prior to the expiry of a Consultation Period, in order to protect its rights under this Agreement or in relation to a Dispute. 

  
 24 

	12.2	 Continued Performance 

Except where reasonably prevented by the nature of the Dispute, the Parties shall continue to perform their respective duties, obligations and responsibilities
under this Agreement while the Dispute is being resolved in accordance with this Section 12, unless and until such obligations are lawfully terminated or expire in accordance with the provisions thereof. 

 

	12.3	 Proceedings Confidential 

Except where disclosure is required by Applicable Law, all dispute resolution and arbitration proceedings (including all related information, communications,
documents, materials, and evidence) shall be strictly confidential, and each Party shall have a fiduciary obligation to the other Party to protect, preserve and maintain the integrity of such confidentiality. 

 

	13.	 GENERAL MATTERS 

 

	13.1	 Enurement 

This Agreement shall enure to the benefit of and be binding upon the Parties and their respective successors, legal representatives and permitted assigns. 

 

	13.2	 Assignment 

The rights and benefits of Sundial hereunder shall not be assignable without the prior written consent of the Company. The Company may assign any of its rights
and benefits hereunder without the prior written consent of Sundial. This Note shall be binding upon and enure to be benefit of the Parties hereto and their respective successors and permitted assigns. 

 

	13.3	 Notices 

Any notice, consent, waiver, direction or other communication required or permitted to be given under this Agreement by a Party shall be in writing and may be
given by sending same by email, prepaid mail or by delivery by hand addressed to the Party to which the notice is to be given at the applicable address noted below. Any such notice, consent, waiver, direction or other communication, if sent by
email, shall be deemed to have been given and received at the time of receipt (if a Business Day or, if not, the next succeeding Business Day) unless actually received after 5:00 p.m. (local time) at the point of delivery in which case it shall be
deemed to have been received on the next succeeding Business Day; if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lock-out of
otherwise, shall be deemed to have been received on the fourth Business Day after the post-marked date thereof; or, if delivered by hand, shall be deemed to have been received on the day on which it is delivered (if a Business Day, if not, the next
succeeding Business Day). 

  
 25 

 The address for each of the Parties shall be as follows: 

 

	 	(a)	 If to the Company at: 

Cannabis Wheaton Income Corp. 

777 Richmond St. W, 
 Suite 002

 Toronto ON M6J 3N5 

Attention:     [***] 

Email:          [***] 
  

	 	(b)	 If to the Sundial at: 

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

Attention:     [***] 

Email:          [***] 
  

	13.4	 Third Party Beneficiaries 

This Agreement is entered into solely between, and may be enforced only by Sundial and the Company and their respective successors and permitted assigns.
Except for the benefits of Section 11 which the Parties (as applicable) are deemed to hold in trust for and on behalf of other Indemnified Parties, this Agreement shall not be deemed to create any rights in any Person other than the Parties or
to create any obligations of a Party to any such Person, whether directly or indirectly. 
  

	13.5	 Disclaimer of Other Warranties 

Other than as expressly set out in this Agreement, no Party makes any other warranties, express or implied and each Party expressly disclaims, to the maximum
extent permitted by law, all other warranties or conditions, express or implied by statute or otherwise, including any implied warranties of merchantability, and fitness for a particular purpose, and
non-infringement. 
  

	13.6	 Language 

The parties confirm having requested that this Agreement and all notices or other communications relating hereto be
drawn-up in the English language only. 
  

	13.7	 Further Assurances 

Each Party shall, from time to time and at all times hereafter, at the request of the other Party but without additional consideration, do all such other acts
and execute and deliver all such further documents and instruments as shall be reasonably required in order to fully perform and carry out the provisions of this Agreement. 

  
 26 

	13.8	 Effective Annual Rate 

Under no circumstances shall the Company receive a payment or partial payment under or in relation to this Agreement at a rate that is prohibited under
Applicable Law. Accordingly, notwithstanding anything herein or elsewhere contained, if and to the extent that under any circumstances the amounts received by the Company pursuant to this Agreement or any agreement or arrangement collateral hereto
entered into in consequence or implementation hereof would, but for this Section 13.8, be a rate that is prohibited under Applicable Law, then the effective annual rate, as so determined, received or to be received by the Company shall be and
be deemed to be adjusted to a rate that is one whole percentage point less than the lowest effective annual rate that is so prohibited; and, if the Company has received a payment or partial payment which would, but for this Section 13.8, be so
prohibited then Sundial and the Company acknowledge, agree, intend and confirm that: 
  

	 	(a)	 any amount or amounts so received by the Company in excess of the lowest effective annual rate that is so
prohibited shall be deemed to constitute a success fee (all such cumulative amounts being the “Success Fee”) and not “interest” as defined under the Criminal Code (Canada) (the “Code”); and

  

	 	(b)	 Sundial shall not object to or contest the payment of any Success Fee (once such amount is finally determined
in accordance with the terms of this Agreement) or claim that any portion of the Success Fee constitutes “interest” as defined under the Code. 

  

	13.9	 Counterparts 

This Agreement may be executed by any Party in any number of counterparts, each of which shall be deemed to be an original, but all such counterparts shall
together constitute one and the same instrument. The transmission by facsimile of, or e-mail transmission of a portable document format (.pdf), copy of the execution page hereof reflecting the execution of
this Agreement by any Party shall be effective to evidence the Party’s intention to be bound by this Agreement and that Party’s agreement to the provisions hereof, all without the necessity of having to produce an original copy of such
execution page. 
 [Remainder of this page intentionally left blank.] 

 

  
 27 

 The Parties have caused this Agreement to be executed by their duly authorized representatives as of the ___
day of _________, 2018. 
  

			
	CANNABIS WHEATON INCOME CORP.
		
	Per:	 	 /s/ [***]

		 	Name: [***]
		 	Title: [***]
	
	I have the authority to bind the corporation.
	
	SUNDIAL GROWERS INC.
		
	Per:	 	 /s/ [***]

		 	Name: [***]
		 	Title: [***]
	
	I have the authority to bind the corporation.

  

  
 [Signature Page
– Note Purchase Agreement] 

 SCHEDULE “A” 

DEFINITIONS 
  

	(a)	 “ACMPR License” means license No.
10-MM0078/2017 granted to Sundial at 273209 Range Road 20, M.D. Rocky View No. 44, Airdrie, AB T4B 2A3, to cultivate cannabis pursuant to the ACMPR. 

 

	(b)	 “ACMPR” means the Access to Cannabis for Medical Purposes ACMPR, promulgated under the
Act as the same may be amended from time to time and includes all written and publicly available notices, guidance, guidelines and ancillary rules or regulations promulgated thereunder or in connection therewith. 

 

	(c)	 “Act” means the Controlled Drugs and Substances Act S.C. 1996, c.19 as the same may be
amended from time to time and includes any successor or replacement legislation. 

  

	(d)	 “Affiliate” means, in relation to any Person, any other Person that controls the first Person,
is controlled by the first Person or is controlled by the same Person that controls the first Person. For certainty, a Person is an Affiliate of another Person if they are both an Affiliate of a third Person. 

 

	(e)	 “Agreement” means this Note Purchase Agreement, in each case as the same may be supplemented,
amended, restated or replaced from time to time, and the expressions “hereof”, “herein”, “hereto”, “hereunder”, “hereby” and similar expressions refer to this Agreement and unless otherwise
indicated, references to Articles and Sections are to Articles and Sections of this Agreement. 

  

	(f)	 “Applicable Law” means any domestic or foreign statute, law (including the common law),
ordinance, rule, regulation, restriction, by-law (zoning or otherwise), order or any consent, exemption, approval or license of any Governmental Authority, that applies in whole or in part to the transactions
contemplated by this Agreement, the Company, the Product, including the ACMPR. 

  

	(g)	 “arm’s length” shall have the meaning ascribed thereto in the Income Tax Act
(Canada). 

  

	(h)	 “ATB Financial” shall mean Alberta Treasury Branches. 

 

	(i)	 “Authorization(s)” means, with respect to any Person, any order, permit, approval,
registration, consent, certificate, waiver, license or similar authorization of any Governmental Authority having jurisdiction over the Person. 

  

	(j)	 “Bankruptcy Proceedings” means, in relation to a Party: (i) the making of an assignment
or arrangement for the benefit of creditors; (ii) the filing by such Party of a petition or commencement of proceedings under any bankruptcy or similar law, or having such a petition filed or proceeding commenced with respect to such Party by
another Person, where such petition or proceeding of such other Person is not dismissed for a period of 30 calendar days; (iii) the levy of an attachment for execution against the whole or any material part of its assets; (iv) such Party
becoming insolvent or unable to pay its 

	 	
debts as they generally become due as determined by a court of competent jurisdiction; or (v) such Party stops, suspends or threatens to stop or suspend payment of all or a material part of
its indebtedness or begins negotiations or takes any other step with a view to the deferral, rescheduling or other readjustment of all or a material part of its indebtedness. 

 

	(k)	 “Business Day” means any day other than a Saturday, a Sunday or a statutory holiday observed
in the Province of Ontario. 

  

	(l)	 “Change of Control” a consolidation, amalgamation, arrangement, binding share exchange, merger
of Sundial, as applicable, with or into any other Person or other entity or acquisition of Sundial, as applicable, or other combination pursuant to which the common shares of Sundial, as applicable, are converted into or acquired for cash,
securities or other property; or a sale or conveyance of the property and assets of Sundial, as applicable, as an entirety or substantially as an entirety to any other Person or a liquidation, dissolution or
winding-up of Sundial. 

  

	(m)	 “Claim” means a claim for indemnification by an Indemnified Party pursuant to
Section 11.1. 

  

	(n)	 “Collateral” means all property, assets and undertaking of Sundial encumbered by the Security
and all proceeds thereof and shall specifically include the Properties. 

  

	(o)	 “Confidential Information” means non-public,
confidential, personal or proprietary information concerning a Party and its Affiliates and its and their respective businesses and affairs that is or has been disclosed by one Party (a “Disclosing Party”) to the other Party (the
“Recipient”) in connection with the Transaction and the transactions contemplated by this Agreement, including the existence of, the terms and conditions of, the status of the transactions contemplated by, or any other facts
pertaining to, this Agreement, any information about identifiable individuals or any other information relating to a Party and its associates, customers, suppliers, partners, investors, employees and consultants, but in each case does not include:
(i) information that the Recipient can demonstrate: (A) is or has become generally available to the public other than as a result of disclosure by the Recipient or its affiliates or representatives; (B) is received by the Recipient or
its affiliates or representatives from an independent third party that obtained it lawfully and was under no duty of confidentiality; (C) was in its possession or the possession of its affiliates or representatives prior to the disclosure of
such information by the Disclosing Party; (D) was independently developed by the Recipient or its affiliates or representatives without the use of or reference to any Confidential Information; or (E) is disclosed pursuant to a valid and
enforceable order of a court or other Governmental Authority having jurisdiction over a Recipient provided that the Recipient shall, to the extent possible, first notify the Disclosing Party in writing of such requirement and fully cooperate with
respect to any reasonable steps possible to further protect the Confidential Information; nor (ii) any information that is disclosed pursuant to a written or verbal request from Health Canada or the Minister provided that the Recipient shall,
to the extent possible, first notify the Disclosing Party of such requirement. For the avoidance of doubt, the existence of this Agreement and its terms shall be deemed Confidential Information. 

  
 A-2 

	(p)	 “control”, “controlled” or “controls” means, in relation to
any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through ownership of voting securities, by contract or otherwise. For certainty, a Person
controls a Person if they have the ability to control the Person or Persons who control such Person. 

  

	(q)	 “Direct Claim” means a Claim which originates pursuant to this Agreement and does not involve
a Third Party Claim. 

  

	(r)	 “Encumbrance” means any mortgage, charge, Lien, hypothec, encumbrance, security interest,
adverse claims, pledges, demands, deemed trust or other form of encumbrance of any nature whatsoever or howsoever, but excluding rights of way, easements, and encumbrances arising by operation of law in each case not adversely affecting the ability
of Sundial to operate the Sundial Facilities in the Ordinary Course. 

  

	(s)	 “Environmental Laws” means all applicable laws relating to the environment or
environmental issues (including air, surface, water and stratospheric matters), pollution or protection of human health and safety, including relating to the release, threatened release, manufacture, processing, blending, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous Materials. 

  

	(t)	 “First-Ranking Security Interest” in respect of any Collateral means a Lien in such
Collateral which is registered to the extent required pursuant to this Agreement and which ranks in priority to all other Liens in such Collateral except for those Permitted Liens (if any) which have priority in accordance with Applicable Law.

  

	(u)	 “Grams” means all dried saleable cannabis flower produced in any Sundial Facility as measured
in grams. For greater certainty, “Grams” shall not include any cannabis trim that results from the production of such Grams. 

  

	(v)	 “Governmental Authority” means any government, regulatory authority, governmental department,
agency, commission, bureau, court, judicial body, arbitral body or other law, rule or regulation-making entity: (i) having jurisdiction over the Company, Sundial or the Product on behalf of any country, province, state, locality or other
geographical or political subdivision thereof; or (ii) exercising or entitled to exercise any administrative, judicial, legislative, regulatory or taxing authority or power, and for greater certainty, including Health Canada and any recognized
stock exchange on which the securities of a Party are or are to be listed. 

  

	(w)	 “Hazardous Materials” means any solid, liquid, gas, odour, heat, sound, vibration, radiation
or combination of any of them that is regulated or defined pursuant to Environmental Law, including those defined as dangerous, hazardous, radioactive, explosive or toxic or a pollutant or a contaminant. 

  
 A-3 

	(x)	 “Indebtedness” as to any Person means, without duplication: (i) all obligations of such
Person for borrowed money; (ii) all obligations of such Person evidenced by bonds, debentures, promissory notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, or
other financial products; (iii) all obligations of such Person as a lessee under any lease; (iv) all obligations or liabilities of others secured by a Encumbrance on any asset or property of such Person, irrespective of whether such
obligation or liability is assumed; (v) all obligations of such Person to pay the deferred purchase price of assets or property; and (vi) all obligations of such Person owing under hedge agreements. 

 

	(y)	 “Licensed Producer” has the meaning ascribed to that term in the ACMPR. 

 

	(z)	 “Lien” means: (i) a lien, charge, mortgage, pledge, security interest or conditional sale
agreement; (ii) an assignment, lease, consignment, trust or deemed trust that secures payment or performance of an obligation; (iii) any other encumbrance of any kind; and (iv) any commitment or agreement to enter into or grant any of
the foregoing. 

  

	(aa)	 “Losses” means any loss, injury, liability, damage, cost, expense (including reasonable
external legal and consulting fees and disbursements), or deficiency of any kind or nature, suffered or incurred by a Party, including in respect of any proceeding, assessment, judgment, settlement or compromise relating thereto and includes a
permitted Recall Expense. 

  

	(bb)	 “Lot or Batch” means any lot or batch of Product cultivated at any Sundial Facility and
comprising the any of the Product delivered to the Company hereunder. 

  

	(cc)	 “Material Adverse Effect” or “Material Adverse Change” means the effect
resulting from any change (including a decision to implement such a change made by the board of directors or by senior management who believe that confirmation of the decision of the board of directors is probable), event, violation, inaccuracy or
circumstance that is materially adverse to the business, assets (including intangible assets), liabilities, capitalization, ownership, prospects, financial condition, or results of operations of Sundial, taken as a whole. 

 

	(dd)	 “Minister” means the Minister of Health or such other successor or replacement Minister with
general oversight and authority for the implementation, administration and enforcement of the ACMPR. 

  

	(ee)	 “Ordinary Course” means with respect to Sundial the ordinary course of its business operations
as conducted as of the date of this Agreement. 

  

	(ff)	 “Payment Obligations” means the repayment of the sum of the Principal Amount and all other
amounts payable by Sundial to the Company hereunder, by: (i) on or prior to the Maturity Date, by: (A) the delivery of the Total Product; (B) the Payment of the Buy Back Amount; or (C) upon Sundial providing the Company with 90
days advance written notice of its intention to repay any portion of the Payment Obligations with a combination of subparagraphs (A) and (B) above such that the Company receives cash and Product (which shall be valued at $2.24 per Gram)
representing an aggregate value equivalent to the Buy Back Amount; or (ii) on or prior to the expiry of the Additional Term, the payment of the Buy Back Amount plus the Maturity Penalty which shall be paid in accordance with
Section 3.2(a). 

  
 A-4 

	(gg)	 “Permitted Encumbrances” means with respect to the Properties, collectively, the following:
(i) mortgage registered on September 20, 2017 in favour of Mountain View Credit Union, Limited in the principal amount of $350,000 – to be discharged in accordance with Section 10.1(c); (ii) assignment of rents and leases
registered on September 20, 2017 in favour of Mountain View Credit Union, Limited—to be discharged in accordance with Section 10.1(c); (iii) mortgage registered on January 31, 2018 in favour of 2082033 Alberta Ltd. for the
principal amount of $55,000,000; and (iv) assignment of rents and Leases registered on title on January 31, 2018 in favour of 2082033 Alberta Ltd. 

  

	(hh)	 “Permitted Liens” means the Liens set out in Section 4.1(j) of Schedule “D”.

  

	(ii)	 “Person” means any individual, partnership, limited partnership, limited liability company,
joint venture, syndicate, sole proprietorship, company or corporation with or without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal representative, Governmental Authority or other entity
however designated or constituted. 

  

	(jj)	 “Product(s)” means dried marihuana, fresh marihuana, cannabis oil or any other
cannabis-derived product which Sundial may produce from time to time in accordance with Applicable Law. 

  

	(kk)	 “Properties” means, collectively the following lands and buildings and improvements located
thereon: (i) the property legally described as Lot C, Plan 76734 and municipally described as 8170 Dallas Drive, Kamloops, British Columbia, (ii) the property legally described as Lot 13, Block 1, Plan 1710892 and municipally described as
102 48 Ave, Olds, Alberta; and (iii) property legally described as Block 6, Plan 741 0409 and municipally described as 273, 209 Range Road 20 Count of Rocky View, Alberta. 

 

	(ll)	 “Quality Assurance Person” or “QAP” means a person designated as a quality
assurance person for the purposes of the ACMPR or other Applicable Law and who has been approved to act in such a capacity by the relevant Governmental Authority. 

 

	(mm)	 “Recall Report” means the report which must be provided to the Minister pursuant to the ACMPR
in connection with any recall of cannabis. 

  

	(nn)	 “Representatives” means, with respect to a Party, its Affiliates and its and their respective
directors, officers, employees, professional advisors, successors and assigns (including accountants, lawyers and financial advisors). For certainty, no Party shall be a Representative of the other. 

 

	(oo)	 “Security” means all guarantees, security agreements, mortgages, debentures and other
documents mentioned in Section 3.6 and all other documents and agreements delivered by Sundial to the Company from time to time as security for the payment and performance of the Payment Obligations, and the security interests, assignments and
Liens constituted by the foregoing. 

  
 A-5 

	(pp)	 “Serious Adverse Reaction” has the meaning ascribed thereto in the ACMPR.

  

	(qq)	 “SOP” refers to the provision of any standard operating procedure.

  

	(rr)	 “Specified Persons” means Ted Hellard and Geoff Thompson, and “Specified
Person” means either one of them. 

  

	(ss)	 “Strain” means a particular variety of Product identifiable by plant species and its commonly
used commercial name (e.g. OG Kush, Afghani, Bruce Banner etc.) and any other identifier associated with such a variety or associated with the genetic origin of such variety. 

 

	(tt)	 “Sundial Facilities” means collectively, the Existing Facility and the Cultivation Facility or
any cannabis cultivation facility controlled by Sundial, as applicable and each facility being a “Sundial Facility”. 

  

	(uu)	 “Summary Report” means the annual summary report of all Adverse Reactions that have occurred
during the previous 12 month period which is required to be prepared and maintained in accordance with the ACMPR and, if requested by the Minister, provided to the Minister in accordance with the ACMPR. 

 

	(vv)	 “Tax” and “Taxes” means taxes, duties, fees, premiums, assessments, imposts,
levies and other charges of any kind whatsoever imposed by any Governmental Authority, including all interest, penalties, fines, additions to tax or other additional amounts imposed by any Governmental Authority in respect thereof, and including
those levied on, or measured by, or referred to as, income, gross receipts, profits, capital, transfer, land transfer, sales, goods and services, harmonized sales, use, value-added, excise, stamp, withholding, business, franchising, property,
development, occupancy, employer health, payroll, employment, health, disability, severance, unemployment, social services, education and social security taxes, all surtaxes, all customs duties and import and export taxes, countervail and
anti-dumping, all license, franchise and registration fees and all employment insurance, health insurance and Canada and other government pension plan premiums or contributions. 

 

	(ww)	 “Third Party Claim” means a Claim by an Indemnified Party which originates by reason of a
Person (other than such Indemnified Party) making a claim against the Indemnified Party. 

  
 A-6EX-10.3

 Exhibit 10.3 

Execution Copy 
  

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

 SHARE PURCHASE AGREEMENT 

BETWEEN 
 2119694
ALBERTA INC. 
 – and – 

SUNDIAL GROWERS INC. 

– and – 
 KAMCAN
PRODUCTS INC. 
 – and – 

2011296 ALBERTA INC. 

– and – 
 SPROUT
TECHNOLOGIES INC. 
 JUNE 1, 2018 
  

 Table of Contents 

 

							
	 	 	 	  	Page	 
	 ARTICLE 1 INTERPRETATION
	  	 	2	 
			
	 1.1
	 	Definitions	  	 	2	 
	 1.2
	 	Certain Rules of Interpretation	  	 	6	 
	 1.3
	 	Governing Law	  	 	6	 
	 1.4
	 	Entire Agreement	  	 	6	 
	 1.5
	 	Schedules and Exhibits	  	 	7	 
		
	 ARTICLE 2 PURCHASE AND SALE
	  	 	7	 
			
	 2.1
	 	Agreement of Purchase and Sale	  	 	7	 
	 2.2
	 	Purchase Price	  	 	7	 
	 2.3
	 	Payment of Purchase Price	  	 	7	 
		
	 ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE SELLER
	  	 	9	 
			
	 3.1
	 	Corporate Existence of Seller	  	 	9	 
	 3.2
	 	Capacity to Enter Agreement	  	 	9	 
	 3.3
	 	Binding Obligation	  	 	9	 
	 3.4
	 	Title to Purchased Shares	  	 	10	 
	 3.5
	 	Residence of Seller	  	 	10	 
	 3.6
	 	Options	  	 	10	 
	 3.7
	 	Ownership of Seller	  	 	10	 
		
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE BUYER
	  	 	10	 
			
	 4.1
	 	Corporate Existence of Buyer	  	 	10	 
	 4.2
	 	Capacity to Enter Agreement	  	 	10	 
	 4.3
	 	Binding Obligation	  	 	10	 
	 4.4
	 	Absence of Conflict	  	 	11	 
	 4.5
	 	Securities Laws—Exemption Criteria	  	 	11	 
	 4.6
	 	Issued and Outstanding Shares	  	 	11	 
		
	 ARTICLE 5 COVENANTS
	  	 	11	 
			
	 5.1
	 	Conduct of Business Before Closing	  	 	11	 
	 5.2
	 	Access for Investigation	  	 	11	 
	 5.3
	 	Actions to Satisfy Closing Conditions	  	 	12	 
	 5.4
	 	Personal Information—Post-Closing	  	 	12	 
	 5.5
	 	Indemnification and Directors’ and Officers’ Insurance	  	 	12	 
	 5.6
	 	Covenants following Initial Closing Date	  	 	13	 
		
	 ARTICLE 6 CLOSING CONDITIONS
	  	 	13	 

  
 -i- 

							
	 6.1
	 	Conditions for the Benefit of the Buyer	  	 	13	 
	 6.2
	 	Waiver or Termination by the Buyer	  	 	14	 
	 6.3
	 	Conditions for the Benefit of the Seller	  	 	15	 
	 6.4
	 	Waiver or Termination by the Seller	  	 	16	 
	 6.5
	 	Conditions Precedent—No Action to Restrain	  	 	16	 
		
	 ARTICLE 7 SURVIVAL AND INDEMNIFICATION
	  	 	17	 
			
	 7.1
	 	Survival of Covenants and Representations and Warranties	  	 	17	 
	 7.2
	 	Survival Following Termination	  	 	17	 
	 7.3
	 	Mutual Indemnifications for Breaches of Warranty, etc.	  	 	17	 
	 7.4
	 	Limitation on Mutual Indemnification	  	 	17	 
	 7.5
	 	Additional Seller’s Indemnity	  	 	18	 
	 7.6
	 	Additional Buyer’s Indemnity	  	 	18	 
	 7.7
	 	Notice of Claim	  	 	18	 
	 7.8
	 	Time Limits for Notice	  	 	18	 
	 7.9
	 	Remoteness and Mitigation	  	 	19	 
	 7.10
	 	Third Party Indemnification	  	 	19	 
		
	 ARTICLE 8 CLOSING ARRANGEMENTS
	  	 	19	 
			
	 8.1
	 	Closing	  	 	19	 
	 8.2
	 	Closing Arrangements	  	 	20	 
		
	 ARTICLE 9 GENERAL
	  	 	20	 
			
	 9.1
	 	Time of Essence	  	 	20	 
	 9.2
	 	Notices	  	 	20	 
	 9.3
	 	Severability	  	 	22	 
	 9.4
	 	Submission to Jurisdiction	  	 	22	 
	 9.5
	 	Amendment and Waiver	  	 	22	 
	 9.6
	 	Expenses	  	 	23	 
	 9.7
	 	Further Assurances	  	 	23	 
	 9.8
	 	No Assignment and Enurement	  	 	23	 
	 9.9
	 	Payment and Currency	  	 	23	 
	 9.10
	 	Counterparts and Electronic Delivery	  	 	23	 
	 9.11
	 	Electronic Delivery	  	 	24	 
	 9.12
	 	No Broker	  	 	24	 
	 9.13
	 	No Contra Proferentem	  	 	24	 
	 9.14
	 	Acknowledgement	  	 	24	 
	 9.15
	 	Language	  	 	24	 

  

  
 -ii- 

 SHARE PURCHASE AGREEMENT 

THIS AGREEMENT is dated as of June 1, 2018 
 B E
T W E E N : 
 2119694 ALBERTA INC., a corporation incorporated under the laws of the Province of Alberta 

(the “Seller”) 

- and - 
 SUNDIAL GROWERS
INC., a corporation existing under the laws of the Province of Alberta 
 (the “Buyer”) 

- and - 
 KAMCAN PRODUCTS
INC., a corporation existing under the laws of the Province of British Columbia (“Kamcan”) 
 - and - 

2011296 ALBERTA INC., a corporation existing under the laws of the Province of Alberta (“2011296”) 

- and - 
 SPROUT TECHNOLOGIES
INC., a corporation existing under the laws of the Province of Alberta (“Sprout”) 
 (Kamcan, 2011296 and Sprout,
collectively, the “Guarantor”) 
 CONTEXT: 
  

	A.	 Sundial Growers Inc. (the “Corporation”) is a corporation existing under the laws of
the Province of Alberta. 

  

	B.	 The Seller will be the owner of 6,134,391 common voting shares in the capital of the Corporation on or
prior to the Initial Closing Date (the “Purchased Shares”). 

  

	C.	 The Seller wants to sell to the Buyer and the Buyer wants to purchase from the Seller the Purchased
Shares. 

  

	D.	 The Guarantor agrees to guarantee (the “Guarantee”) all of the obligations of the Buyer
hereunder on a joint and several basis until all of the Purchased Shares have been purchased by Buyer. 

  
 -1- 

 THEREFORE, the Parties agree as follows: 

ARTICLE 1 

INTERPRETATION 
  

	1.1	 Definitions 

In this Agreement in addition to terms defined elsewhere in this Agreement, the following terms have the following meanings: 

 

	1.1.1	 “ACMPR” means Access to Cannabis for Medical Purposes Regulations (SOR/2016-230), as amended from time to time. 

  

	1.1.2	 “Acceleration Date” is defined in Section 2.3.3. 

 

	1.1.3	 “Agreement” means this agreement, including all Schedules and Exhibits, as it may be
confirmed, amended, modified, supplemented or restated by written agreement between the Parties. 

  

	1.1.4	 “Books and Records” means all books, ledgers, files, lists, reports, plans, logs, deeds,
surveys, correspondence, operating records, tax returns and other data and information, including all data and information stored on computer-related or other electronic media, maintained in connection with the Business and the Corporation.

  

	1.1.5	 “Business” means the business of cannabis production and distribution, carried on by the
Corporation under Health Canada ACMPR approval. 

  

	1.1.6	 “Business Day” means any day excluding a Saturday, Sunday or statutory holiday in the
Provinces of Alberta, and also excluding any day on which the principal chartered banks located in the City of Calgary are not open for business during normal banking hours. 

 

	1.1.7	 “Buyer” is defined in the recital of the Parties above. 

 

	1.1.8	 “Closings” means the tranches of completion of the sale to, and purchase by, the Buyer of the
Purchased Shares pursuant to this Agreement. 

  

	1.1.9	 “Closing Dates” means, collectively: 

 

	 	1.1.9.1	 the Initial Closing Date for 1,000,000 Purchased Shares; 

 

	 	1.1.9.2	 on or prior to November 25, 2018 for 2,567,195 Purchased Shares; and 

 

	 	1.1.9.3	 the Final Closing Date for all remaining Purchased Shares, being 2,567,196 Purchased Shares; or

 any other date that the Parties may agree is the date upon which the Closing will take place. 

  
 -2- 

	1.1.10	 “Closing Time” means 10:00 a.m. (Calgary time) on the applicable Closing Date or any other
time on the applicable Closing Date as may be agreed by the Parties. 

  

	1.1.11	 “Communication” means any notice, demand, request, consent, approval or other communication
which is required or permitted by this Agreement to be given or made by a Party. 

  

	1.1.12	 “Corporation” is defined in the “Context” above. 

 

	1.1.13	 “D&O Insurance” is defined in Section 5.5.2. 

 

	1.1.14	 “Encumbrance” means any security interest, mortgage, charge, pledge, hypothec, lien,
encumbrance, restriction, option, adverse claim, right of others or other encumbrance of any kind. 

  

	1.1.15	 “Governmental Authority” means: 

 

	 	1.1.15.1	 any federal, provincial, state, local, municipal, regional, territorial, aboriginal, or other government,
governmental or public department, branch, ministry, or court, domestic or foreign, including any district, agency, commission, board, arbitration panel or authority and any subdivision of any of them exercising or entitled to exercise any
administrative, executive, judicial, ministerial, prerogative, legislative, regulatory, or taxing authority or power of any nature; and 

  

	 	1.1.15.2	 any quasi-governmental or private body exercising any regulatory, expropriation or taxing authority under or
for the account of any of them, and any subdivision of any of them. 

  

	1.1.16	 “Guarantee” is defined in the “Context” above. 

 

	1.1.17	 “Guarantee Agreement” is defined in Section 2.3.4. 

 

	1.1.18	 “Guarantor” is defined in the recital of the Parties above. 

 

	1.1.19	 “Indemnified Party” means the Party or other indemnified Person entitled to make a claim for
indemnification under any provision of Article 7. 

  

	1.1.20	 “Indemnifying Party” means the Party providing indemnification under any provision of Article
7. 

  

	1.1.21	 “Indemnity Claim” is defined in Section 7.7. 

 

	1.1.22	 “Indemnity Notice” is defined in Section 7.7. 

 

	1.1.23	 “Initial Closing” means the purchase by the Buyer and the sale by the Seller of 1,000,000
Purchased Shares in consideration of $2,700,000. 

  

	1.1.24	 “Initial Closing Date” means June 22, 2018. 

  
 -3- 

	1.1.25	 “In-Kind-Payment” means cannabis product produced by
the Buyer, in same quality and grade as produced by the Buyer in ordinary course, at a conversion price of $2.95 of the Purchase Price per gram of such cannabis product. 

 

	1.1.26	 “ITA” means the Income Tax Act (Canada). 

 

	1.1.27	 “Licensed Producer” means a Person with a valid and current license issued by Health Canada
under the Access to Cannabis for Medical Purposes Regulations (SOR/2016-230), as amended from time to time. 

  

	1.1.28	 “Loss” means any loss, liability, damage, cost, expense, charge, fine, penalty or assessment
including the costs and expenses of any action, suit, proceeding, demand, assessment, judgment, settlement or compromise and all interest, fines, penalties and reasonable professional fees and disbursements, but excluding loss of profits (whether as
direct or indirect damages) and punitive, exemplary, indirect, special and consequential damages. 

  

	1.1.29	 “Material Adverse Effect” means a material adverse effect on the Business or financial
position, condition, assets or properties of the Corporation, the knowledge of which would persuade the applicable Party, acting reasonably, that the value of the Purchased Shares is lower than the Purchase Price. 

 

	1.1.30	 “Material Contract” means a contract that: 

 

	 	1.1.30.1	 involves or may result in the payment of money or money’s worth by or to the Corporation in an amount in
excess of $100,000; 

  

	 	1.1.30.2	 has an unexpired term of more than 2 years (including renewals); 

 

	 	1.1.30.3	 cannot be terminated by the Corporation without penalty upon less than 30 days’ notice; or

  

	 	1.1.30.4	 the termination of which, or under which the loss of rights, would constitute a Material Adverse Effect.

  

	1.1.31	 “On-Loading Product Agreement” means an agreement that
provides that if the Corporation enters into an agreement with any Person for the purposes of purchasing cannabis products from such Person, the Buyer shall be obligated to pay to the Seller an amount equal to [***]% of the [***] revenues received
by the Corporation from such agreement. 

  

	1.1.32	 “Parties” means the Seller and the Buyer and the Guarantor, collectively, and
“Party” means any one of them. 

  

	1.1.33	 “Penalty Interest” means penalty interest of 1.0% compounded monthly. 

 

	1.1.34	 “Permits” means the authorizations, registrations, permits, certificates of approval,
approvals, grants, licences, quotas, consents, commitments, rights or privileges (other than those relating to the intellectual property) issued or granted by any Governmental Authority to the Corporation. 

  
 -4- 

	1.1.35	 “Person” will be broadly interpreted and includes: 

 

	 	1.1.35.1	 a natural person, whether acting in his or her own capacity, or in his or her capacity as executor,
administrator, estate trustee, trustee or personal or legal representative, and the heirs, executors, administrators, estate trustees, trustees or other personal or legal representatives of a natural person; 

 

	 	1.1.35.2	 a corporation or a company of any kind, a partnership of any kind, a sole proprietorship, a trust, a joint
venture, an association, an unincorporated association, an unincorporated syndicate, an unincorporated organization or any other association, organization or entity of any kind; and 

 

	 	1.1.35.3	 a Governmental Authority. 

 

	1.1.36	 “Personal Information” means information about an individual who can be identified by the
Person who holds that information. 

  

	1.1.37	 “Purchase Price” is defined in Section 2.2. 

 

	1.1.38	 “Purchased Shares” is defined in the “Context” above. 

 

	1.1.39	 “Second Tranche Maturity Date” means November 25, 2018. 

 

	1.1.40	 “Second Tranche Promissory Note” means the subordinated, unsecured promissory note in the
amount of $6,931,426.50 issued by the Buyer in respect of the purchase of 2,567,195 Purchased Shares on the Acceleration Date, bearing interest at 1.0% compounded monthly beginning on the Second Tranche Maturity Date, if not otherwise redeemed prior
to such date, in the form attached hereto as Exhibit 2.3.3. 

  

	1.1.41	 “Seller” is defined in the recital of the Parties above. 

 

	1.1.42	 “Seller In-Kind-Payment Election” is defined in
Section 2.3.2.1. 

  

	1.1.43	 “Third Party Claim” is defined in Section 7.7. 

 

	1.1.44	 “Third Tranche Maturity Date” means March 25, 2019. 

 

	1.1.45	 “Third Tranche Promissory Note” means the subordinated, unsecured promissory note in the
amount of $6,931,429.20 issued by the Buyer in respect of the purchase of the remaining 2,567,196 Purchased Shares on the earlier of the Acceleration Date and the Second Tranche Maturity Date, bearing interest at 1.0% compounded monthly beginning on
the Third Tranche Maturity Date, if not otherwise redeemed prior to such date, in the form attached hereto as Exhibit 2.3.1.3. 

  
 -5- 

	1.1.46	 “Voting Trust Agreement” means the voting trust agreement dated February 2, 2018 between
Edward A. Hellard and Stanley J. Swiatek. 

  

	1.2	 Certain Rules of Interpretation 

 

	1.2.1	 In this Agreement, words signifying the singular number include the plural and vice versa, and words signifying
gender include all genders. Every use of the words “including” or “includes” in this Agreement is to be construed as meaning “including, without limitation” or “includes, without limitation”, respectively.

  

	1.2.2	 The division of this Agreement into Articles and Sections, the insertion of headings and the inclusion of a
table of contents are for convenience of reference only and do not affect the construction or interpretation of this Agreement. 

  

	1.2.3	 Wherever in this Agreement reference is made to a calculation to be made in accordance with GAAP, the reference
is to Canadian generally accepted accounting principles applicable to publicly accountable enterprises under private enterprises under Part II of the CPA Canada Handbook of the Chartered Professional Accountants of Canada, as amended at any time,
applicable as at the date of this Agreement. 

  

	1.2.4	 References in this Agreement to an Article, Section, Schedule or Exhibit are to be construed as references to
an Article, Section, Schedule or Exhibit of or to this Agreement unless otherwise specified. 

  

	1.2.5	 Unless otherwise specified, any reference in this Agreement to any statute includes all regulations and
subordinate legislation made under or in connection with that statute at any time, and is to be construed as a reference to that statute as amended, modified, restated, supplemented, extended, re-enacted,
replaced or superseded at any time. 

  

	1.3	 Governing Law 

This Agreement is governed by, and is to be construed and interpreted in accordance with, the laws of the Province of Alberta and the laws of Canada applicable
in that Province. 
  

	1.4	 Entire Agreement 

This Agreement, together with any other agreement or agreements and other documents to be delivered under this Agreement, constitutes the entire agreement
between the Parties pertaining to the subject matter of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties, and there are no representations, warranties or other
agreements between the Parties, express or implied, in connection with the subject matter of this Agreement except as specifically set out in this Agreement or in any of the other agreements and documents delivered under this Agreement. No Party has
been induced to enter into this Agreement in reliance on, and there will be no liability assessed, either in tort or contract, with respect to, any warranty, representation, opinion, advice or assertion of fact, except to the extent it has been
reduced to writing and included as a term in this Agreement or in any of the other agreements and documents delivered under this Agreement. 

  
 -6- 

	1.5	 Schedules and Exhibits 

The following is a list of Exhibits: 
  

			
	Exhibit	  	Subject Matter
		
	 1.1.31
	  	 Form of On-Loading Product Agreement

		
	 2.3.1.3
	  	 Form of Third Tranche Promissory Note

		
	 2.3.3.
	  	 Form of Second Tranche Promissory Note

		
	 2.3.4
	  	 Form of Guarantee Agreement

		
	 6.1.3.1
	  	 Form of Mutual Confidentiality and Non-Disparaging
Agreement

		
	 6.1.3.3
	  	 Form of Amending Agreement to the Voting Trust Agreement

		
	 6.1.3.4
	  	 Form of Mutual Release

 ARTICLE 2 

PURCHASE AND SALE 
  

	2.1	 Agreement of Purchase and Sale 

Subject to the terms and conditions of this Agreement, on each Closing Date, the Seller will sell, and the Buyer will purchase, the applicable portion of the
Purchased Shares. 
  

	2.2	 Purchase Price 

The aggregate purchase price payable by the Buyer to the Seller for the Purchased Shares (the “Purchase Price”) is $16,562,855.70. 

 

	2.3	 Payment of Purchase Price 

The Buyer will pay and satisfy the Purchase Price at the Closing Time on each of the Closing Dates as follows: 

 

	2.3.1	 by delivering to the Seller, if applicable, a certified cheque or bank draft, or by effecting a wire transfer
of immediately available funds, to an account designated in writing by the Seller, the amounts set out below, on each of the Closing Dates set out below: 

  

	 	2.3.1.1	 $2,700,000 on or prior to the Initial Closing Date for 1,000,000 Purchased Shares; 

  
 -7- 

	 	2.3.1.2	 subject to Section 2.3.3 below, $6,931,426.50, on or prior to Second Tranche Maturity Date for 2,567,195
Purchased Shares; and 

  

	 	2.3.1.3	 by delivering to the Seller the Third Tranche Promissory Note on or prior to the Second Tranche Maturity Date
for 2,567,196 Purchased Shares. 

  

	2.3.2	 In the event that the Buyer is unable to satisfy the Purchase Price as set out in Section 2.3.1 on any of
the applicable Closing Dates: 

  

	 	2.3.2.1	 the Seller shall have the right, but not an obligation to require that the Buyer make all, or a portion of the
Purchase Price that the Buyer cannot satisfy in cash (at the election of the Buyer), by way of an In-Kind-Payment by delivering the In-Kind- Payment to a Licensed
Producer elected by the Seller and notified to the Buyer in writing at any time until the overdue portion of the Purchase Price has been satisfied by the Buyer (or the Seller may request that the Buyer hold the
In-Kind-Payment in escrow until the Seller can elect a suitable Licensed Producer) (the “Seller In-Kind-Payment Election”); 

 

	 	2.3.2.2	 the overdue portion of the Purchase Price in sections 2.3.1.1 and 2.3.1.2 (subject to Section 2.3.3) will
immediately begin to bear Penalty Interest until such overdue portion of the Purchase Price has been satisfied in full by the Buyer; and 

  

	 	2.3.2.3	 until such overdue portion of the Purchase Price has been satisfied in full, the Seller shall have the right
but not an obligation to find a substitutional purchaser, approved by the board of directors of the Corporation for all remaining Purchased Shares. For clarity, the Seller’s attempt to find a substitutional purchaser for the remaining Purchased
Shares under this Section 2.3.2.3 shall not relieve the Buyer’s obligation under this Agreement unless the Seller successfully finds and sells the Remaining Shares to such substitutional purchaser. 

 

	2.3.3	 The Buyer hereby covenants not to issue any common voting shares of the Buyer or securities or rights
convertible into common voting shares of the Buyer from the date of this Agreement until after the purchase by the Buyer of 1,000,000 Purchased Shares from the Seller has been completed in accordance with the terms of this Agreement without prior
written consent from the Seller. Notwithstanding the foregoing, no prior written consent from the Seller will be required if the issuance of any common voting shares of the Buyer, provided that following the issuance of such common voting shares of
the Buyer, the aggregate issued and outstanding number of common voting shares of the Buyer does not exceed 50,000,000. 

  

	2.3.4	 Subject to Section 2.3.3, in the event that the Buyer enters into an agreement or the board of directors
of the Buyer approves and authorizes the Buyer to complete any issuance of common voting shares of the Buyer or securities or rights convertible into common voting shares of the Buyer prior to the Second Tranche Maturity Date,

  
 -8- 

	 	
which if completed, will result in the Seller owning less than 10% of the common voting shares in the capital of the Corporation, the Buyer and the Seller agrees to complete the purchase and sale
of the 2,567,195 Purchased Shares and the 2,567,196 Purchased Shares otherwise expected to occur on the Second Tranche Maturity Date, by issuing a Second Tranche Promissory Note and a Third Tranche Promissory Note on or prior to one full Business
Day prior to the anticipated closing date of such equity financing (the “Acceleration Date”). 

  

	2.3.5	 The payments of the Purchase Price set out in Section 2.3.1 shall be guaranteed by the Guarantor and the
Guarantor will execute and deliver at the Initial Closing Time, a guarantee agreement substantially in the form attached as Exhibit 2.3.5 (the “Guarantee Agreement”) guaranteeing all obligations of the Buyer, in favour of the Seller
until and including the Final Closing Date. 

 ARTICLE 3 

REPRESENTATIONS AND WARRANTIES OF THE SELLER 

The Seller represents and warrants to the Buyer as follows, and acknowledges that the Buyer is relying upon these representations and warranties in connection
with the purchase of the Purchased Shares, despite any investigation made by or on behalf of the Buyer, and that this reliance is a right that has been bargained for, and forms part of the consideration in the transactions contemplated by this
Agreement. 
  

	3.1	 Corporate Existence of Seller 

The Seller is a corporation duly incorporated and validly existing under the laws of the Province of Alberta. 

 

	3.2	 Capacity to Enter Agreement 

The Seller has all necessary corporate power, authority and capacity to enter into this Agreement and on or prior to the Initial Closing Date, will have all
necessary corporate power, authority and capacity perform its obligations under this Agreement. 
  

	3.3	 Binding Obligation 

The execution and delivery of this Agreement and the completion of the transactions contemplated by this Agreement have been duly authorized by all necessary
corporate action on the part of each of the Parties. This Agreement has been duly executed and delivered by each of the Parties and constitutes a valid and binding obligation of each of the Parties, enforceable against each of the Parties in
accordance with its terms, subject to applicable bankruptcy, insolvency and other laws of general application limiting the enforcement of creditors’ rights generally and to the fact that equitable remedies, including specific performance, are
discretionary and may not be ordered in respect of certain defaults. 

  
 -9- 

	3.4	 Title to Purchased Shares 

On or prior to the Initial Closing Date, the Seller will be the legal and beneficial owner of the Purchased Shares and has good title to them, free and clear
of any Encumbrance except for any restriction on transfer contained in the articles of the Corporation and the provisions of the Voting Trust Agreement. At each of the applicable Closing Date, the Seller will have the absolute and exclusive right to
sell the Purchased Shares to the Buyer as contemplated by this Agreement. 
  

	3.5	 Residence of Seller 

The Seller is not a non-resident of Canada for purposes of the ITA. 

 

	3.6	 Options 

No Person has any written or oral agreement or option or any right or privilege (whether by law, pre- emptive,
contractual or otherwise) capable of becoming an agreement for the purchase from the Seller of any of the Purchased Shares. 
  

	3.7	 Ownership of Seller 

All of the voting shares of the Seller are beneficially owned and controlled by Stanley Swiatek. 

ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF THE BUYER 

The Buyer represents and warrants to the Seller as follows, and acknowledges that the Seller is relying upon these representations and warranties in
connection with the sale of the Purchased Shares, despite any investigation made by or on behalf of the Seller. 
  

	4.1	 Corporate Existence of Buyer 

The Buyer is a corporation duly incorporated and validly existing under the laws of the Province of Alberta. 

 

	4.2	 Capacity to Enter Agreement 

The Buyer has all necessary corporate power, authority and capacity to enter into and perform its obligations under this Agreement. 

 

	4.3	 Binding Obligation 

The execution and delivery of this Agreement and the completion of the transactions contemplated by this Agreement have been duly authorized by all necessary
corporate action on the part of the Buyer. This Agreement has been duly executed and delivered by the Buyer and constitutes a valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms, subject to
applicable bankruptcy, insolvency and other laws of general application limiting the enforcement of creditors’ rights generally and to the fact that equitable remedies, including specific performance, are discretionary and may not be ordered in
respect of certain defaults. 

  
 -10- 

	4.4	 Absence of Conflict 

None of the execution and delivery of this Agreement, the performance of the Buyer’s obligations under this Agreement, or the completion of the
transactions contemplated by this Agreement, will result in or constitute a breach of any term or provision of, or constitute a default under, the articles or by-laws of the Buyer or any agreement or other
commitment to which the Buyer is a party. 
  

	4.5	 Securities Laws—Exemption Criteria 

The Buyer is purchasing the Purchased Shares as principal at a cost to itself of not less than $150,000, to be paid in cash at the Closing Time. The Buyer is
not an entity created or used solely to purchase or hold shares in reliance on the exemption from the prospectus requirement set out at section 2.10 of National Instrument 45-106 of the Canadian Securities
Administrators. 
  

	4.6	 Issued and Outstanding Shares 

As of the date of this Agreement, there are 42,270,959 common voting shares of the Buyer issued and outstanding. 

ARTICLE 5 
 COVENANTS

  

	5.1	 Conduct of Business Before Closing 

During the period beginning on the date of this Agreement and ending at the Closing Time of the Final Closing Date, the Buyer will cause the Corporation: 

 

	5.1.1	 to conduct the Business diligently and prudently; 

 

	5.1.2	 to continue in full force all of its insurance policies; 

 

	5.1.3	 to comply in all material respects with all laws applicable to the Business; and 

 

	5.1.4	 to apply for, maintain in good standing and renew all Permits. 

 

	5.2	 Access for Investigation 

 

	5.2.1	 The Buyer will, and will cause the Corporation to, permit the Seller through its authorized representatives,
until the Initial Closing Date, to have reasonable access during normal business hours to all of the real property that is owned or leased by the Corporation, and to the premises located on that real property, and to all the Books and Records of the
Corporation and to the properties and assets of the Corporation. The Buyer will also furnish to the Seller any financial and operating data and other information with respect to the Corporation or the Business as the Buyer reasonably requests from
time to time until the Initial Closing Date. The Seller will be provided ample opportunity to make a full investigation of all aspects of the financial affairs of the Corporation until the Initial Closing Date. 

  
 -11- 

	5.2.2	 The collection, use and disclosure of Personal Information by any of the Parties before the Closing is
restricted to those purposes that relate to the transactions contemplated by this Agreement. 

  

	5.3	 Actions to Satisfy Closing Conditions 

Each Party will take or cause to be taken all actions that are within its power to control, and will make all commercially reasonable efforts to cause other
actions to be taken which are not within its power to control, so as to ensure its compliance with, and satisfaction of, all conditions in Article 6 that are for the benefit of the other Party. 

 

	5.4	 Personal Information—Post-Closing 

The Buyer covenants that following the Closing it will cause the Corporation to: 
  

	5.4.1	 use and disclose the Personal Information under its control at the time of the Closing solely for the purposes
for which that Personal Information was collected or permitted to be used or disclosed before the transaction was completed; and 

  

	5.4.2	 neither use nor disclose any of that Personal Information for any purpose for which its use and disclosure was
not permitted before the Closing for any purpose that does not relate directly to its Business; and 

  

	5.4.3	 protect that Personal Information by security safeguards appropriate to the sensitivity of the information; and

  

	5.4.4	 notify the employees, customers, directors, officers and shareholders whose Personal Information is disclosed
that the transactions contemplated by this Agreement have taken place; and 

  

	5.4.5	 give effect to any withdrawal of consent made in accordance with clause 4.3.8 of Schedule 1 to the Personal
Information Protection and Electronic Documents Act (Canada). 

  

	5.5	 Indemnification and Directors’ and Officers’ Insurance 

 

	5.5.1	 From and after the Closing Date, the Buyer will cause the Corporation to fulfill and honour in all respects the
obligations of the Corporation pursuant to any indemnification agreements between the Corporation and Stanley Swiatek as of or before the date of this Agreement, and any indemnification provisions under the Corporation’s by-laws as in effect on the date of this Agreement. 

  

	5.5.2	 The Buyer will maintain Stanley Swiatek under its existing directors’ and officers’ liability
insurance policies for a period of [***] after the Closing Date for claims arising from facts or events that occurred at, or before, the Closing Time of the Initial Closing Date (including acts or omissions relating to the approval of this Agreement
and consummation of the transactions contemplated by this Agreement) (the “D&O Insurance”). 

  
 -12- 

	5.6	 Covenants following Initial Closing Date 

 

	5.6.1	 Following the Initial Closing Date, the Seller or Stanley Swiatek will have the right to nominate one board
member to be elected with the board slate at the next annual general meeting of the Corporation and the nominee can be either [***] or [***]. 

  

	5.6.2	 Following the Initial Closing Date, to the extent that the Seller requires financial information regarding the
Corporation, the Seller will make request for such information through its nominated board member and the Corporation will provide such information to the Seller through its President. The Corporation has the right to withhold any information that
its board of directors determine to be unduly harmful to the Corporation, with such withholding not to be unreasonable. 

ARTICLE 6 
 CLOSING
CONDITIONS 
  

	6.1	 Conditions for the Benefit of the Buyer 

The obligation of the Buyer to complete the purchase of the Purchased Shares will be subject to the fulfilment of the following conditions at or before the
Closing Time at each of the Closing Dates: 
  

	6.1.1	 Representations, Warranties and Covenants. The representations and warranties of the Seller made in this
Agreement, and any other agreement or document delivered pursuant to this Agreement, will be true and accurate at the Closing Time with the same force and effect as though those representations and warranties had been made as of the Closing Time,
and for certainty, any representations and warranties made as at a date before the Closing Time will be deemed to be made as at the Closing Time. The Seller will have complied with all covenants and agreements to be performed or caused to be
performed by it under this Agreement, and any other agreement or document delivered pursuant to this Agreement, at or before the Closing Time. In addition, the Seller will have delivered to the Buyer a certificate of a senior officer of the Seller
at the Closing Time confirming the same. The receipt of that certificate and the completion of the Closing will not be deemed to constitute a waiver of any of the representations, warranties or covenants of the Seller contained in this Agreement, or
in any other agreement or document delivered pursuant to this Agreement. Those representations, warranties and covenants will continue in full force and effect as provided in Article 7, or, if Article 7 does not apply, the terms of the agreement or
document in which they are made. 

  
 -13- 

	6.1.2	 Consents. All filings, notifications and consents with, to or from Governmental Authorities and third
parties, including the parties to the Material Contracts and the lessors of the real properties leased by the Corporation, will have been made, given or obtained on terms acceptable to the Buyer, acting reasonably, so that the transactions
contemplated by this Agreement may be completed without resulting in the violation of, or a default under, or any termination, amendment or acceleration of any obligation under, any licence, Permit, lease of real property or Material Contract of or
affecting the Business. 

  

	6.1.3	 Deliveries. The Seller will have delivered to the Buyer the following in form and substance satisfactory
to the Buyer on or before the Initial Closing Date: 

  

	 	6.1.3.1	 mutual confidentiality agreement and non-disparaging agreement duly
executed by the Seller and the Buyer substantially in the form attached as Exhibit 6.1.3.1; 

  

	 	6.1.3.2	 duly executed resignation effective as at the Closing Time of Stanley Swiatek as director and officer of the
Corporation and each of the Guarantor; 

  

	 	6.1.3.3	 an amendment to the Voting Trust Agreement releasing Edward Hellard from voting his common shares in the
capital of the Corporation in favour of Stanley Swiatek as a director of the Corporation and confirming that the Seller continues to be bound by such agreement substantially in the form attached as Exhibit 6.1.3.3; 

 

	 	6.1.3.4	 mutual release in between the Corporation and each of the Guarantor and Stanley Swiatek in his capacity as
director and officer of the Corporation and each Guarantor of all claims that they may have against the other substantially on the terms of the release attached as Exhibit 6.1.3.4; 

 

	 	6.1.3.5	 the consents referred to in Section 6.1.2; 

 

	 	6.1.3.6	 executed On-Loading Product Agreement; and 

 

	 	6.1.3.7	 all documentation and other evidence reasonably requested by the Buyer in order to establish the due
authorization and completion of the transactions contemplated by this Agreement, including the taking of all corporate proceedings by the boards of directors and shareholders of the Seller and the Corporation required to effectively carry out the
obligations of the Seller and the Corporation pursuant to this Agreement. 

  

	6.2	 Waiver or Termination by the Buyer 

The conditions contained in Section 6.1 are inserted for the exclusive benefit of the Buyer and may be waived in whole or in part by the Buyer at any time
without prejudice to any of its rights of termination in the event of non-performance of any other condition in whole or in part. If any of the conditions contained in Section 6.1 are not fulfilled or
complied with by the time that is required under this Agreement, the Buyer may, at or before the Closing Time, terminate this Agreement by notice in writing after that time to the Seller. In that event the Buyer and the Seller will be released from
all obligations under this Agreement (except as set out in Section 7.2). 

  
 -14- 

	6.3	 Conditions for the Benefit of the Seller 

The obligation of the Seller to complete the sale of the Purchased Shares will be subject to the fulfilment of the following conditions at or before the
Closing Time at each of the Closing Dates: 
  

	6.3.1	 Representations, Warranties and Covenants. The representations and warranties of the Buyer made in this
Agreement, and any other agreement or document delivered pursuant to this Agreement, will be true and accurate at the Closing Time with the same force and effect as though those representations and warranties had been made as of the Closing Time.
The Buyer will have complied with all covenants and agreements agreed to be performed or caused to be performed by it under this Agreement, and any other agreement or document delivered pursuant to this Agreement, at or before the Closing Time, and
for certainty, any representations and warranties made as at a date before the Closing Time will be deemed to be made as at the Closing Time. In addition, the Buyer will have delivered to the Seller a certificate of a senior officer of the Buyer at
the Closing Time confirming the same. The receipt of that certificate and the completion of the Closing will not be deemed to constitute a waiver of any of the representations, warranties or covenants of the Buyer contained in this Agreement, or in
any other agreement or document delivered pursuant to this Agreement. Those representations, warranties and covenants will continue in full force and effect as provided in Article 7, or, if Article 7 does not apply, the terms of the agreement or
document in which they are made. 

  

	6.3.2	 Completion of Investigations. In respect of the Initial Closing, the investigations contemplated in
Section 5.2 will have been completed and the Seller will be satisfied with the results of those investigations, including the accuracy of the matters represented and warranted in Article 3. 

 

	6.3.3	 Deliveries. The Buyer will have delivered to the Seller the following in form and substance satisfactory
to the Seller: 

  

	 	6.3.3.1	 mutual confidentiality agreement and non-disparaging agreement duly
executed by the Seller and the Buyer substantially in the form attached as Exhibit 6.1.3.1; 

  

	 	6.3.3.2	 sales commission agreement between the Corporation and Stanley Swiatek, entitling Stanley Swiatek to receive
[***]% sales commission from the [***] revenues received by the Corporation under any on-loading product agreement for cannabis growers executed by the Corporation; 

 

	 	6.3.3.3	 mutual release in between the Corporation and each of the Guarantor and Stanley Swiatek in his capacity as
director and officer of the Corporation and each of the Guarantor of all claims that they may have against the other substantially on the terms of the release attached as Exhibit 6.1.3.4; 

  
 -15- 

	 	6.3.3.4	 duly executed Guarantee Agreement; 

 

	 	6.3.3.5	 board resolution appointing [***] as director of the Corporation to fill the vacancy created by resignation of
Stanley Swiatek; 

  

	 	6.3.3.6	 evidence of D&O Insurance contemplated in Section 5.5 in form satisfactory to the Seller acting
reasonably; 

  

	 	6.3.3.7	 a certified cheque or a bank draft made out to Gowling WLG (Canada) LLP in trust in the amount of $50,000,
representing estimated legal fees of Gowling WLG (Canada) LLP, to be applied against the final invoice of Gowling WLG (Canada) LLP’s legal invoice, as counsel to the Seller; 

 

	 	6.3.3.8	 executed On-Loading Product Agreement; and 

 

	 	6.3.3.9	 all documentation and other evidence reasonably requested by the Seller in order to establish the due
authorization and completion of the transactions contemplated by this Agreement, including the taking of all corporate proceedings by the board of directors and the shareholders of the Buyer required to effectively carry out the obligations of the
Buyer pursuant to this Agreement. 

  

	6.4	 Waiver or Termination by the Seller 

The conditions contained in Section 6.3 are inserted for the exclusive benefit of the Seller and may be waived in whole or in part by the Seller at any
time without prejudice to any of its rights of termination in the event of non-performance of any other condition in whole or in part. If any of the conditions contained in Section 6.3 are not fulfilled
or complied with by the time as required under this Agreement, the Seller may, at or before the Closing Time, terminate this Agreement by notice in writing after that time to the Buyer. In that event the Seller and the Buyer will be released from
all obligations under this Agreement (except as set out in Section 7.2). 
  

	6.5	 Conditions Precedent—No Action to Restrain 

The purchase and sale of the Purchased Shares is subject to the conditions that no order of any Governmental Authority will be in force, and no action or
proceeding will be pending or threatened by any Person to restrain or prohibit the completion of the transactions contemplated in this Agreement, including the sale and purchase of the Purchased Shares. 

These conditions are true conditions precedent to the completion of the transactions contemplated by this Agreement. If they have not been fulfilled at or
before the Closing Time, this Agreement will be terminated and the Parties will be released from all obligations under this Agreement (except as set out in Section 7.2). 

  
 -16- 

 ARTICLE 7 

SURVIVAL AND INDEMNIFICATION 
  

	7.1	 Survival of Covenants and Representations and Warranties 

All of the covenants and representations and warranties contained in this Agreement and in any other agreement or document delivered pursuant to this
Agreement, including this Article 7, will survive the Closing. 
  

	7.2	 Survival Following Termination 

If this Agreement is terminated at or before the Closing Time of the Final Closing Date pursuant to Sections 6.2, 6.4 or 6.5, the provisions of Sections 2.3.3,
4.6 and 5.6 will remain in full force and effect, and this Article 7 will survive and apply to any claim that is made with respect to any of those provisions, or under the indemnities set out in Sections 7.5 and 7.6. 

 

	7.3	 Mutual Indemnifications for Breaches of Warranty, etc. 

Subject to the remaining provisions of this Article 7, each Party agrees that if it fails to observe or perform any covenant or obligation, or breaches any
representation and warranty, contained in this Agreement, or in any other agreement or document delivered pursuant to this Agreement, it will indemnify and hold harmless the other Party and each director, officer or employee of the other Party from
and against the full amount of any Loss that each may suffer as a result of that failure. Each Party also agrees to indemnify and hold harmless the other Party and each director, officer or employee of the other Party from and against the full
amount of any Loss that each may suffer as a result of a Third Party Claim, even if that Third Party Claim is ultimately found not to be meritorious, or is settled with no verdict on its merits being reached. 

 

	7.4	 Limitation on Mutual Indemnification 

The indemnification obligations of: 
  

	7.4.1	 the Seller pursuant to Section 7.3 are limited, in the aggregate, to the Purchase Price, in the case of
the Seller’s breach of any of its representations and warranties contained in Article 3 or in any other agreement or document delivered pursuant to this Agreement, and any of its covenants contained in Article 5; and 

 

	7.4.2	 the Buyer pursuant to Section 7.3 are limited, in the aggregate, to the Purchase Price, in the case of the
Buyer’s breach of any of its representations and warranties contained in Article 4 or in any other agreement or document delivered pursuant to this Agreement, and any of its covenants contained in Article 5. 

For certainty, nothing in Sections 7.4.1 or 7.4.2 will apply to limit the amount of damages that can be recovered under any claim with respect to a breach of
the mutual confidentiality and non-disparaging covenants contained in the agreement contemplated by Section 6.1.3.1. 

  
 -17- 

	7.5	 Additional Seller’s Indemnity 

The Seller will indemnify and hold harmless the Buyer and each director, officer or employee of the Buyer from and against any Loss up to, in the aggregate,
the Purchase Price, that each may suffer resulting from the termination of this Agreement under the terms of Section 6.2, if that Loss arises from the non-fulfilment or
non-performance of the relevant conditions as a result of a breach of covenant, or representation and warranty, of the Seller. 
  

	7.6	 Additional Buyer’s Indemnity 

The Buyer will indemnify and hold harmless the Seller and each director, officer or employee of the Seller from and against any Loss up to, in the aggregate,
the Purchase Price, that each may suffer resulting from the termination of this Agreement under the terms of Section 6.4, if that Loss arises from the non-fulfilment or
non-performance of the relevant conditions as a result of a breach of covenant, or representation and warranty, of the Buyer. 
  

	7.7	 Notice of Claim 

If an Indemnified Party becomes aware of a Loss or potential Loss in respect of which the Indemnifying Party has agreed to indemnify it under this Agreement,
the Indemnified Party will promptly give written notice (an “Indemnity Notice”) of its claim or potential claim for indemnification (an “Indemnity Claim”) to the Indemnifying Party. An Indemnity Notice must specify
whether the Indemnity Claim arises as the result of a claim made against an Indemnified Party by a Person who is not a Party (a “Third Party Claim”) or as a result of a Loss that was suffered directly by an Indemnified Party, and
must also specify with reasonable particularity (to the extent that the information is available): 
  

	7.7.1	 the factual basis for the Indemnity Claim; and 

 

	7.7.2	 the amount of the Indemnity Claim, if known. 

If, through the fault of the Indemnified Party, the Indemnifying Party does not receive an Indemnity Notice of an Indemnity Claim in time to effectively
contest the determination of any liability capable of being contested, the Indemnifying Party will be entitled to set off against the amount claimed by the Indemnified Party the amount of any Loss incurred by the Indemnifying Party resulting from
the Indemnified Party’s failure to give an Indemnity Notice on a timely basis. 
  

	7.8	 Time Limits for Notice 

 

	7.8.1	 Subject to the remaining provisions of this Section 7.8, no Indemnity Claim may be made under Sections
7.3, 7.5 or 7.6, unless an Indemnity Notice of that Indemnity Claim is delivered to the Indemnifying Party within 12 months after the Final Closing Date. 

  

	7.8.2	 No Indemnity Claim arising out of a breach of the mutual confidentiality and
non-disparaging covenants under the agreement contemplated by Section 6.1.3.1 may be made unless an Indemnity Notice of that Indemnity Claim is delivered to the Seller within 12 months of the end of the
term of the relevant covenant as set out in that agreement. 

  
 -18- 

	7.8.3	 No Indemnity Claim may be made with respect to the breach of the representations and warranties of the Seller
contained in Sections 3.1, 3.2, 3.3 and 3.4, unless an Indemnity Notice of that Indemnity Claim is delivered to the Seller within 12 months after the Final Closing Date. 

 

	7.8.4	 An Indemnity Notice of a Third Party Claim may be delivered to the Indemnifying Party in accordance with
Section 7.7 at any time that the Third Party Claim arises. 

  

	7.8.5	 An Indemnity Notice of an Indemnity Claim may be delivered to the Indemnifying Party in accordance with
Section 7.7 at any time with respect to a breach of any of the Indemnifying Party’s covenants or representations and warranties, if that breach is attributable to neglect, carelessness or wilful default, intentional misrepresentation, or
fraud. If the breach is attributable to wilful default, intentional misrepresentation, or fraud, none of the monetary limits imposed by section 7.4 will apply. 

 

	7.9	 Remoteness and Mitigation 

The quantum of Losses that can be recovered by an Indemnified Party under this Article 7 will not be affected by the application of principles of remoteness of
damages, or the duty to mitigate. 
  

	7.10	 Third Party Indemnification 

To ensure that the indemnities provided by each of the Seller and the Buyer to the other’s directors, officers and employees are enforceable, it is agreed
by the Parties that each of the Seller and Buyer is acting as agent for its respective directors, officers and employees with respect to the indemnities intended to be given to those directors, officers and employees under this Article 7. Each of
the Seller and the Buyer agrees that it will hold any right to indemnification that any director, officer or employee of it is intended to have under this Article in trust for that director, officer or employee, and that funds received by the Seller
or Buyer in respect of any claims under this Article by any director, officer or employee of it will be held in trust for that director, officer or employee. 

ARTICLE 8 
 CLOSING
ARRANGEMENTS 
  

	8.1	 Closing 

Subject to the earlier termination of this Agreement under Sections 6.2, 6.4 or 6.5, the Closing will take place at the Closing Time on each of the Closing
Dates by means of: 
  

	8.1.1	 an electronic closing in which the closing documentation will be delivered by electronic mail exchange of
signature pages in pdf or functionally equivalent electronic format, which delivery will be effective without any further physical exchange of the originals or copies of the originals, or; 

  
 -19- 

	8.1.2	 a physical closing at the offices of Gowling WLG (Canada) LLP, located at Suite 1600, 421 – 7 Avenue SW,
Calgary, Alberta, or at any other place that is agreed to in writing by the Parties. 

  

	8.2	 Closing Arrangements 

At the Closing Time on each of the Closing Dates: 
  

	8.2.1	 the Seller will deliver to the Buyer certificates representing the applicable portion of the Purchased Shares
duly endorsed in blank for transfer or accompanied by duly executed blank stock transfer powers; and 

  

	8.2.2	 each Party will make the deliveries required of it under Article 6, 

following which the Buyer will make payment of the applicable portion of the Purchase Price in accordance with the provisions of Section 2.3 and the
transfer of the Purchased Shares into the name of the Buyer and/or its nominees will be duly and validly recorded on the books of the Corporation. 

ARTICLE 9 
 GENERAL

  

	9.1	 Time of Essence 

Time is of the essence in all respects of this Agreement. 
  

	9.2	 Notices 

Any Communication must be in writing and either: 
  

	9.2.1	 delivered personally or by courier; 

 

	9.2.2	 sent by prepaid registered mail; or 

 

	9.2.3	 transmitted by facsimile, e-mail or functionally equivalent electronic
means of transmission, charges (if any) prepaid. 

 Any Communication must be sent to the intended recipient at its address as follows:

 to the Seller at: 
 2119694
Alberta Inc. 
 Attention:             [***] 

Tel No.:                [***] 

E-mail:                
 [***] 

  
 -20- 

 with a copy to: 

Gowling WLG (Canada) LLP 
 1600,
421 – 7 Avenue SW 
 Calgary, Alberta T2P 4K9 
  

					
		 	Attention:	  	[***]
		 	Tel No.:	  	[***]
		 	Facsimile No.:	  	[***]
		 	E-mail:	  	[***]

 to the Buyer at: 

Sundial Growers Inc. 
 Site 4
Box 17 RR1 
 Airdrie, Alberta T4B 2A3 
  

					
		 	Attention:	  	[***]
		 	Tel No.:	  	[***]
		 	E-mail:	  	[***]

 with a copy to: 

McCarthy Tetrault LLP 
 4000,
421 – 7 Avenue SW 
 Calgary, Alberta T2P 4K9 
  

					
		 	Attention:	  	[***]
		 	Tel No.:	  	[***]
		 	Facsimile No.:	  	[***]
		 	E-mail:	  	[***]

 to the Guarantors at: 

Site 4 Box 17 RR1 
 Airdrie,
Alberta T4B 2A3 
  

					
		 	Attention:	  	[***]
		 	Tel No.:	  	[***]
		 	E-mail:	  	[***]

 or at any other address as any Party may at any time advise the other by Communication given or made in accordance with this
Section 9.2. Any Communication delivered to the Party to whom it is addressed will be deemed to have been given or made and received on the day it is delivered at that Party’s address, provided that if that day is not a Business Day then
the Communication will be deemed to have been given or made and received on the next Business Day. Any Communication sent by prepaid registered mail will be deemed to have been given or made and received on the fifth Business Day after which it is
mailed. If a strike or lockout of postal 

  
 -21- 

 
employees is then in effect, or generally known to be impending, every Communication must be delivered personally or by courier or transmitted by facsimile,
e-mail or functionally equivalent electronic means of transmission. Any Communication transmitted by facsimile, e-mail or other functionally equivalent electronic means
of transmission will be deemed to have been given or made and received on the day on which it is transmitted; but if the Communication is transmitted on a day which is not a Business Day or after 4:00 p.m. (local time of the recipient), the
Communication will be deemed to have been given or made and received on the next Business Day. 
  

	9.3	 Severability 

Each Section of this Agreement is distinct and severable. If any Section of this Agreement, in whole or in part, is or becomes illegal, invalid, void, voidable
or unenforceable in any jurisdiction by any court of competent jurisdiction, the illegality, invalidity or unenforceability of that Section, in whole or in part, will not affect: 

 

	9.3.1	 the legality, validity or enforceability of the remaining Sections of this Agreement, in whole or in part; or

  

	9.3.2	 the legality, validity or enforceability of that Section, in whole or in part, in any other jurisdiction.

  

	9.4	 Submission to Jurisdiction 

Each of the Parties irrevocably and unconditionally submits and attorns to the non-exclusive jurisdiction of the courts
of the Province of Alberta to determine all issues, whether at law or in equity arising from this Agreement. To the extent permitted by applicable law, each of the Parties: 
  

	9.4.1	 irrevocably waives any objection, including any claim of inconvenient forum, that it may now or in the future
have to the venue of any legal proceeding arising out of or relating to this Agreement in the courts of that Province, or that the subject matter of this Agreement may not be enforced in those courts; 

 

	9.4.2	 irrevocably agrees not to seek, and waives any right to, judicial review by any court which may be called upon
to enforce the judgment of the courts referred to in this Section 9.4, of the substantive merits of any suit, action or proceeding; 

  

	9.4.3	 to the extent a Party has or may acquire any immunity from the jurisdiction of any court or from any legal
process, whether through service or notice, attachment before judgment, attachment in aid of execution, execution or otherwise, with respect to itself or its property, that Party irrevocably waives that immunity in respect of its obligations under
this Agreement. 

  

	9.5	 Amendment and Waiver 

No amendment, discharge, modification, restatement, supplement, termination or waiver of this Agreement or any Section of this Agreement is binding unless it
is in writing and executed by the Party to be bound. No waiver of, failure to exercise or delay in exercising, any Section of this Agreement constitutes a waiver of any other Section (whether or not similar) nor does any waiver constitute a
continuing waiver unless otherwise expressly provided. 

  
 -22- 

	9.6	 Expenses 

Subject to the Initial Closing occurring, Buyer agrees to pay the Seller’s legal fees, excluding disbursements and taxes, in an amount not to exceed
$50,000. Any legal fees of the Seller’s counsel, excluding disbursements and taxes exceeding $50,000 shall be the responsibility of the Seller. If the Initial Closing does not occur and this Agreement terminates in accordance with the terms
hereunder, the Seller shall be responsible for all of its legal counsel’s legal fees, including disbursements and taxes. Other than set out above, each Party shall be responsible for its own expenses incurred in connection with the transaction
contemplated hereunder. 
  

	9.7	 Further Assurances 

Each Party will, at the requesting Party’s cost and expense, execute and deliver any further agreements and documents and provide any further assurances,
undertakings and information as may be reasonably required by the requesting Party to give effect to this Agreement and, without limiting the generality of this Section 9.6, will do or cause to be done all acts and things, execute and deliver
or cause to be executed and delivered all agreements and documents and provide any assurances, undertakings and information as may be required at any time by all Governmental Authorities or stock exchanges having jurisdiction over the Buyer’s
affairs, or as may be required at any time under applicable securities laws. 
  

	9.8	 No Assignment and Enurement 

Neither this Agreement nor any right or obligation under this Agreement may be assigned by either Party. This Agreement enures to the benefit of and is binding
upon the Parties and their respective heirs, executors, administrators, estate trustees, trustees, personal or legal representatives and successors. 
  

	9.9	 Payment and Currency 

Any money to be advanced, paid or tendered by one Party to another under this Agreement must be advanced, paid or tendered by bank draft, certified cheque or
wire transfer of immediately available funds payable to the Person to whom the amount is due. Unless otherwise specified, the word “dollar” and the “$” sign refer to Canadian currency, and all amounts to be advanced, paid,
tendered or calculated under this Agreement are to be advanced, paid, tendered or calculated in Canadian currency. 
  

	9.10	 Counterparts and Electronic Delivery 

This Agreement may be executed and delivered by the Parties in one or more counterparts, each of which will be an original, and each of which may be delivered
by facsimile, e-mail or other functionally equivalent electronic means of transmission, and those counterparts will together constitute one and the same instrument. 

  
 -23- 

	9.11	 Electronic Delivery 

Delivery of this Agreement by facsimile, e-mail or other functionally equivalent electronic means of transmission
constitutes valid and effective delivery. 
  

	9.12	 No Broker 

Each Party represents and warrants to the other Party that all negotiations relating to this Agreement and the transactions contemplated by this Agreement have
been carried on between them directly, without the intervention of any other Person on behalf of any Party in such manner as to give rise to any valid claim against the Buyer or the Corporation for a brokerage commission, finder’s fee or other
similar payment. 
  

	9.13	 No Contra Proferentem 

This Agreement has been reviewed by each Party’s professional advisors, and revised during the course of negotiations between the Parties. Each Party
acknowledges that this Agreement is the product of their joint efforts, that it expresses their agreement, and that, if there is any ambiguity in any of its provisions, no rule of interpretation favouring one Party over another based on authorship
will apply. 
  

	9.14	 Acknowledgement 

Each Party acknowledges that: 
  

	9.14.1	 it has or had the opportunity to receive independent legal advice from its own lawyers with respect to the
terms of this Agreement before its execution; 

  

	9.14.2	 it has read this Agreement, understands it, and agrees to be bound by its terms and conditions; and

  

	9.14.3	 it has received a copy of this Agreement. 

 

	9.15	 Language 

The Parties have expressly required that this Agreement, any Communication and all other contracts, documents and notices relating to this Agreement be drafted
in the English language. Les parties ont expressément exigé que la présente convention, la communication et tous les autres contrats, documents et avis qui y sont afférents soient rédigés dans la langue
anglaise. 
 THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK 

  
 -24- 

 Each of the Parties has executed and delivered this Agreement, as of the date noted at the beginning of the
Agreement. 
  

			
	2119694 ALBERTA INC.

 
			
		
	Per:	 	 /s/ [***]

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

 
			
	
	SUNDIAL GROWERS INC.

 
			
		
	Per:	 	 /s/ [***]

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

 
			
	
	KAMCAN PRODUCTS INC.

 
			
		
	Per:	 	 /s/ [***]

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

 
			
	
	2011296 ALBERTA INC.

 
			
		
	Per:	 	 /s/ [***]

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

 
			
	
	SPROUT TECHNOLOGIES INC.

 
			
		
	Per:	 	 /s/ [***]

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

  
 -25- 

 EXHIBIT 2.3.1.3 

Form of Third Tranche Promissory Note 

(see attached) 

  
 E-2 

 Execution Form 

THIRD TRANCHE SUBORDINATED UNSECURED PROMISSORY NOTE 
  

			
	Calgary, Alberta
	Cdn.$6,931,429.20	  	Effective [NTD: Insert Acceleration Date or November 25, 2018]

 FOR VALUE RECEIVED, Sundial Growers Inc., a corporation duly incorporated and subsisting under the laws of the
province of Alberta, Canada (“Borrower”), promises to pay to 2119694 Alberta Inc., a corporation duly incorporated and subsisting under the laws of the Province of Alberta (“Lender”), in lawful money of Canada, the
principal sum of Six Million Nine Hundred Thirty One Thousand, Four Hundred Twenty Nine Dollars (Cdn.$6,931,429.20), under this Third Tranche Subordinated Unsecured Promissory Note (“Note”), together with interest on any and all
unpaid amounts from and after the Maturity Date. 
 1. Subordination. 

(a) The payment of principal and interest and any and all other amounts due under this Note (the “Subordinated Indebtedness”)
is hereby expressly subordinated to the extent and in the manner hereinafter set forth to the payment in full of the Senior Indebtedness (as hereinafter defined). The Subordinated Indebtedness shall continue to be subordinated to the Senior
Indebtedness even if the Senior Indebtedness is subordinated, avoided or disallowed under the Bankruptcy Insolvency Act (Canada) (“BIA”) or other applicable law including, without limitation, any legal or equitable relief
granted by a Canadian court of competent jurisdiction. As used herein, “Senior Indebtedness” means the obligations owing to each of the following senior lenders (collectively, “Senior Lenders” and each a
“Senior Lender”): (a) ATB Financial (“ATB”) pursuant to a commitment letter to be entered into between the Borrower, as borrower and ATB as lender, as the same may be amended, modified, restated or supplemented from
time to time (“ATB CL”), (b) Cannabis Wheaton Income Corp. (“CW”) pursuant to a note purchase agreement dated as of February 16, 2018 between CW, as lender, and the Borrower, as borrower, as the same may be
amended, modified, restated or supplemented from time to time (“CW NPA”), or (c) a replacement lender or such other senior secured lender of the Borrower from time to time pursuant to a loan agreement, promissory note, or such
other credit document (“Other Senior Loan Agreement”, and together with the ATB CL and CW NPA the “Senior Credit Agreements” and each a “Senior Credit Agreement”); whether any such Senior Credit
Agreement is now existing or hereafter created or incurred, and whether it is or may be direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or joint, several or joint and several, all
interest thereon, and all fees, costs and other charges related thereto (including all interest, fees, costs and other charges accruing after the commencement of any case, proceeding or other action relating to the bankruptcy insolvency or
reorganization of the Borrower, whether or not allowed in such proceeding or other action), all renewals, extensions and modifications thereof and any notes issued in whole or partial substitution therefor. The provisions of this Section 1(a)
shall take precedence over any conflicting provisions in this Note. 

 (b) Upon any distribution to creditors of Borrower in a liquidation or dissolution of
Borrower or upon the occurrence of any bankruptcy, reorganization, insolvency, receivership, or other similar proceeding (an “Insolvency Proceeding”) with respect to Borrower or any of its assets: (i) the holders of the Senior
Indebtedness shall be entitled to receive payment in full in cash, or to have such payment duly provided for, of all amounts payable under or in respect of the Senior Indebtedness (including interest accrued after the commencement of such Insolvency
Proceeding in accordance with the terms of the Senior Indebtedness and cash collateral with respect to all letters of credit in accordance with the terms of the Senior Credit Agreements) before Lender shall be entitled to receive from Borrower or
its assets any payment under or in respect of the Subordinated Indebtedness; and (ii) until the holders of the Senior Indebtedness have received such payment in full in cash, or such payment is duly provided for, any distribution from Borrower
or its assets to which Lender would otherwise be entitled shall be made to the holders of the Senior Indebtedness. Subject to Senior Termination, Lender shall be subrogated to the rights of the holders of the Senior Indebtedness to receive payments
or distribution of assets of Borrower applicable to the Senior Indebtedness until all amounts owing on the Subordinated Indebtedness shall be paid in full. 

(c) Provided that repayment of the principal and any interest owing hereunder on or after the Maturity Date would not cause or result in a
Default or Event of Default (as such terms are defined under the Senior Credit Agreements), the Borrower may pay all amounts due hereunder to the Lender. However, if the Lender receives any payment on this Note during the occurrence or continuance
of a Default or Event of Default (as such terms are defined under the Senior Credit Agreements) prior to Senior Termination, the Lender will hold the amount so received in trust for the holders of the Senior Indebtedness and will forthwith turn over
such payment to ATB in the form received (except for the endorsement of the Lender where necessary) for application to then-existing Senior Indebtedness (whether or not due), in such manner of application as ATB may deem appropriate. If the Lender
fails to make any endorsement required under this Agreement, ATB, or any of its officers or employees or agents on behalf of the ATB, is hereby irrevocably appointed as the
attorney-in-fact (which appointment is coupled with an interest) for the Lender to make such endorsement in the Lender’s name. 

(d) Lender shall not create, assume, or suffer to exist any liens on any collateral to secure repayment of the Subordinated Indebtedness. Any
liens existing in violation of the foregoing shall be fully subordinate to any lien in favor of any holders of Senior Indebtedness which secures any Senior Indebtedness. Borrower and Lender shall take any steps necessary to fully effect the release
of any such Lien in favor of Lender. 
 (e) The provisions of this Section 1 are irrevocable and the holders of the Senior Indebtedness
may, without notice to any of the parties hereto and without impairing or releasing the obligations of Borrower and Lender hereunder: (i) create Senior Indebtedness by extending credit to Borrower; (ii) change the terms of or increase the
amount of the Senior Indebtedness by increasing, extending, rearranging, refinancing, amending, supplementing, or otherwise modifying any agreement creating Senior Indebtedness; (iii) sell, exchange, release, or otherwise deal with any
collateral securing any Senior Indebtedness; (iv) release anyone, including Borrower or any guarantor, liable in any manner for the payment or collection of any Senior Indebtedness; (v) exercise or refrain from exercising any rights
against Borrower or any other Person; or (vi) apply any sums received by any holders of the Senior Indebtedness, from whatever source, to the payment of the Senior Indebtedness. 

  
 2 

 (f) No present or future holder of Senior Indebtedness shall be prejudiced in its right to
enforce subordination of Lender by any act or failure to act on the part of the Borrower or any other Person whether or not such act or failure shall give rise to any right of rescission or other claim or cause of action on the part of Lender. The
holders of Senior Indebtedness are entitled to the benefits of the subordination provisions contained in this Note and are third-party beneficiaries thereof. The provisions regarding the subordination of the Subordinated Indebtedness to the Senior
Indebtedness may not be amended or otherwise modified without the prior written consent of the holders of the Senior Indebtedness. 
 (g) The
provisions of this Section 1 shall be enforceable against Borrower or Lender by the Senior Lenders or any other holder of Senior Indebtedness. By its signature below and acceptance of this Note, Lender agrees to be bound by and to comply with
the provisions of this Section 1. 
 2. Maturity Date. The maturity date (the “Maturity Date”) shall be
March 25, 2019 unless the Lenders otherwise consent in writing. 
 3. Interest Rate. Interest on this Note shall accrue on the
outstanding principal balance at a monthly rate of ONE percent (1%). Interest shall accrue on the outstanding principal balance from and after the Maturity Date until the outstanding principal balance, and all applicable interest, is paid in full.

 4. Payments. All payments of principal and interest hereon shall be made at Lender’s address set forth in paragraph 10 below,
in immediately available funds and without set-off or counterclaim or deduction of any kind. 
 5.
Insolvency Proceedings 
 (a) Filing of Motions. Until Senior Termination has occurred, Lender agrees that it shall not, in or
in connection with any Insolvency Proceeding, file any pleadings or motions, take any position at any hearing or proceeding of any nature, or otherwise take any action whatsoever, including without limitation with respect to the determination of any
claims held by a Senior Lender (including the validity and enforceability thereof) or the value of any claims of such parties; provided that Lender may file a proof of claim in an Insolvency Proceeding subject to the limitations contained in
this Note and only if consistent with the terms and the limitations on Lender imposed hereby. 
 (b) Financing Matters. If
Borrower becomes subject to any Insolvency Proceeding, and if a Senior Lender desires to consent (or not object) to the sale, use or lease of cash or other collateral under the BIA or otherwise or to provide financing to Borrower under the BIA or
otherwise, to consent (or not object) to the provision of such financing to Borrower by any third party (a “DIP Financing”), then the Lender agrees that it (i) will be deemed to have consented to, will raise no objection to,
nor support any other person objecting to, the sale, use or lease of such cash or other collateral or to such DIP Financing, (ii) will not request or accept any form of adequate protection or any other relief in connection with the sale, use or
lease of such cash or other collateral or such DIP Financing except as set forth in Section 5(d) hereof, and (iii) agrees that notice received two (2) calendar days prior to the entry of an order approving such usage of cash
collateral or approving such financing shall be adequate notice. 

  
 3 

 (c) Relief From the Automatic Stay. Lender agrees that it will not seek relief from
the automatic stay or from any other stay in any Insolvency Proceeding or take any action in derogation thereof without the prior written consent of the Senior Lender. 

(d) Adequate Protection. Lender agrees that it shall not object, contest, or support any other person objecting to or contesting,
(i) any request by a Senior Lender for adequate protection or (ii) any objection by a Senior Lender to any motion, relief, action or proceeding based on a claim of a lack of adequate protection or (iii) the payment of interest, fees,
expenses or other amounts to a Senior Lender under the BIA. Notwithstanding anything contained in this Section 5(d) and in Section 5(b) hereof, in any Insolvency Proceeding, (x) the Lender may seek, support, accept or retain adequate
protection (A) only if a Senior Lender are granted adequate protection that includes replacement liens on additional collateral and superpriority claims and a Senior Lender does not object to the adequate protection being provided to the Senior
Lenders and (B) solely in the form of superpriority claims junior in all respects to the superpriority claims granted to the Senior Lenders, and (y) in the event Lender receives adequate protection, then Lender agrees that the Senior
Lenders shall have a senior claim on such adequate protection as security for the Senior Indebtedness. 
 (e) Avoidance Issues. If a
Senior Lender is required in any Insolvency Proceeding or otherwise to disgorge, turn over or otherwise pay to the estate of Borrower, because such amount was avoided or ordered to be paid or disgorged for any reason, including without limitation
because it was found to be a fraudulent or preferential transfer, any amount (a “Recovery”), whether received as proceeds of security, enforcement of any right of set-off or otherwise, then
the Senior Indebtedness shall be reinstated to the extent of such Recovery and deemed to be outstanding as if such payment had not occurred and the Maturity Date shall be deemed not to have occurred. Lender agrees it shall not be entitled to benefit
from any avoidance action affecting or otherwise relating to any distribution or allocation made in accordance with this Note, whether by preference or otherwise, it being understood and agreed that the benefit of such avoidance action otherwise
allocable to them shall instead be allocated and turned over for application in accordance with the priorities set forth in this Note. 
 (f)
Asset Dispositions in an Insolvency Proceeding. Lender shall not, in an Insolvency Proceeding or otherwise, oppose any sale or disposition of any assets of Borrower that is supported by the Lender will be deemed to have consented under the
BIA or otherwise to any sale supported by the holders of the Senior Indebtedness. 
 (g) No Waivers of Rights of First Priority Secured
Parties. Nothing contained herein shall prohibit or in any way limit the Senior Lenders from objecting in any Insolvency Proceeding or otherwise to any action taken by Lender, including the seeking by Lender of adequate protection or the
assertion by Lender of any of its rights and remedies under this Note or otherwise. 

  
 4 

 (h) Plans of Reorganization. Lender shall not support or vote in favor of any plan of
reorganization (and shall vote and shall be deemed to have voted to reject any plan of reorganization) unless such plan (i) pays off, in cash in full, all Senior Indebtedness or (ii) is accepted by the Senior Lenders. To the extent that
Lender attempts to vote or votes in favor of any plan or reorganization in a manner inconsistent with this Section 5(h), Lender irrevocably agrees that the Senior Lenders may be, and may be deemed, an “authorized agent” of such party
under the provisions of the BIA or the Companies’ Creditors Arrangement Act (Canada), respectively, that any Senior Lender is irrevocably appointed Lender’s attorney in fact, coupled with an interest, to vote on Lender’s
behalf in such proceedings, and that such Senior Lender shall be authorized and entitled to submit a superseding ballot or vote, as the case may be, on behalf of Lender that is consistent herewith. 

(i) Other Matters. To the extent that Lender has or acquires rights with respect to any amounts due to Lender under this Note, Lender
agrees not to assert any of such rights without the prior written consent of the Senior Lenders; provided that if requested by the Senior Lenders, Lender shall timely exercise such rights in the manner requested by the Senior Lenders,
including any rights to payments in respect of such rights. 
 6. Costs and Expenses. If Borrower fails to pay any amount due under
this Note and Lender has to take any action to collect the amount due or to exercise its rights under this Note (including without limitation retaining attorneys for collection of this Note), or if any suit or proceeding is brought for the recovery
of all or any part of or for protection of the indebtedness or to foreclose on this Note, then Borrower agrees to pay on demand all reasonable costs and expenses of any such action to collect, suit or proceeding, or any appeal of any such suit or
proceeding, incurred by Lender, including without limitation the reasonable fees and disbursements of Lender’s attorney and their staff. 

7. Waiver. Borrower waives presentment, demand, notice of dishonor and protest, and assents to any extension of time with respect to any
payment due under this Note, to any substitution or release of collateral and to the addition or release of any party. No waiver of any payment or other right under this Note shall operate as a waiver of any other payment or right. 

8. Illegality. If any provision in this Note shall be held invalid, illegal or unenforceable in any jurisdiction, the validity, legality
or enforceability of any defective provisions shall not be in any way affected or impaired in any other jurisdiction. 
 9. No Waiver.
No delay or failure of the holders of this Note in the exercise of any right or remedy provided for hereunder shall be deemed a waiver of such right by the holders hereof, and no exercise of any right or remedy shall be deemed a waiver of any other
right or remedy that the holder may have. 
 10. Notices. All notices shall be in writing. Notices shall become effective
(a) upon personal delivery, including, but not limited to, delivery by overnight mail or courier service, or (b) in the case of notice by telecommunications device, when properly transmitted, in each case addressed as follows: 

To Borrower: 
 Sundial Growers
Inc. 
 Site 4 Box 17 RR1 

Airdrie, Alberta T4B 2A3 

Attention: Torsten Kuenzlen, CEO 

Telephone: 403-948-5227 

Email: tkuenzlen@sundialgrowers.com 

  
 5 

 To Lender: 

2119694 Alberta Inc. 
 c/o Gowling
WLG (Canada) LLP 
 1600, 421-7TH Avenue S.W.

 Calgary, Alberta, T2P 4K9 

Attention: Gregory Peterson 

Telephone: 403-292-9812 

Facsimile: 403-695-3522 

Any party may, by written notice so delivered to the other party, change the address or individual to which delivery shall thereafter be made. 

11. Assignment. Lender shall not transfer or assign, in whole or in part, this Note, without the prior written consent of the Borrower.

 12. Governing Law. The performance and construction of this Note and the other Loan Documents shall be governed by the internal
laws of the Province of Alberta. Borrower agrees that any suit, action or proceeding instituted against Borrower with respect to any of the obligations owing under the Senior Credit Agreements, the collateral, this Note or any of the other loan
documents may be brought in any court of competent jurisdiction located in the Province of Alberta. Borrower hereby irrevocably accepts and submits to the jurisdiction of the aforesaid courts in any such suit, action or proceeding. 

[SIGNATURE PAGE TO FOLLOW] 

  
 6 

 IN WITNESS WHEREOF the undersigned has caused this Note to be signed in its corporate name by its duly
authorized officer as of the date first written above. 
  

			
	BORROWER:
	
	SUNDIAL GROWERS INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	AGREED TO AND ACKNOWLEDGED:
	
	2119694 ALBERTA INC., as Lender

			
		
	By:	 	  

	Name:
	Title:

 Signature Page to Third Tranche Subordinated Promissory Note – Cdn.$6,931,429.20 

Sundial Growers Inc., as Borrower and 

2119694 Alberta Inc., as Lender 

 EXHIBIT 2.3.3 

Form of Second Tranche Promissory Note 

(see attached) 

  
 E-3 

 Execution Version 

SECOND TRANCHE SUBORDINATED UNSECURED PROMISSORY NOTE 

Calgary, Alberta 

			
	Cdn.$6,931,426.50	  	Effective [NTD: Insert Acceleration Date]

 FOR VALUE RECEIVED, Sundial Growers Inc., a corporation duly incorporated and subsisting under the laws of the
province of Alberta, Canada (“Borrower”), promises to pay to 2119694 Alberta Inc., a corporation duly incorporated and subsisting under the laws of the Province of Alberta (“Lender”), in lawful money of Canada, the
principal sum of Six Million Nine Hundred Thirty One Thousand, Four Hundred Twenty Six Dollars (Cdn.$6,931,426.50), under this Subordinated Unsecured Promissory Note (“Note”), together with interest on any and all unpaid amounts
from and after the Maturity Date. 
 1. Subordination. 

(a) The payment of principal and interest and any and all other amounts due under this Note (the “Subordinated Indebtedness”)
is hereby expressly subordinated to the extent and in the manner hereinafter set forth to the payment in full of the Senior Indebtedness (as hereinafter defined). The Subordinated Indebtedness shall continue to be subordinated to the Senior
Indebtedness even if the Senior Indebtedness is subordinated, avoided or disallowed under the Bankruptcy Insolvency Act (Canada) (“BIA”) or other applicable law including, without limitation, any legal or equitable relief
granted by a Canadian court of competent jurisdiction. As used herein, “Senior Indebtedness” means the obligations owing to each of the following senior lenders (collectively, “Senior Lenders” and each a
“Senior Lender”): (a) ATB Financial (“ATB”) pursuant to a commitment letter to be entered into between the Borrower, as borrower and ATB as lender, as the same may be amended, modified, restated or supplemented from
time to time (“ATB CL”), (b) Cannabis Wheaton Income Corp. (“CW”) pursuant to a note purchase agreement dated as of February 16, 2018 between CW, as lender, and the Borrower, as borrower, as the same may be
amended, modified, restated or supplemented from time to time (“CW NPA”), or (c) a replacement lender or such other senior secured lender of the Borrower from time to time pursuant to a loan agreement, promissory note, or such
other credit document (“Other Senior Loan Agreement”, and together with the ATB CL and CW NPA the “Senior Credit Agreements” and each a “Senior Credit Agreement”); whether any such Senior Credit
Agreement is now existing or hereafter created or incurred, and whether it is or may be direct or indirect, due or to become due, absolute or contingent, primary or secondary, liquidated or unliquidated, or joint, several or joint and several, all
interest thereon, and all fees, costs and other charges related thereto (including all interest, fees, costs and other charges accruing after the commencement of any case, proceeding or other action relating to the bankruptcy insolvency or
reorganization of the Borrower, whether or not allowed in such proceeding or other action), all renewals, extensions and modifications thereof and any notes issued in whole or partial substitution therefor. The provisions of this Section 1(a)
shall take precedence over any conflicting provisions in this Note. 

 (b) Upon any distribution to creditors of Borrower in a liquidation or dissolution of
Borrower or upon the occurrence of any bankruptcy, reorganization, insolvency, receivership, or other similar proceeding (an “Insolvency Proceeding”) with respect to Borrower or any of its assets: (i) the holders of the Senior
Indebtedness shall be entitled to receive payment in full in cash, or to have such payment duly provided for, of all amounts payable under or in respect of the Senior Indebtedness (including interest accrued after the commencement of such Insolvency
Proceeding in accordance with the terms of the Senior Indebtedness and cash collateral with respect to all letters of credit in accordance with the terms of the Senior Credit Agreements) before Lender shall be entitled to receive from Borrower or
its assets any payment under or in respect of the Subordinated Indebtedness; and (ii) until the holders of the Senior Indebtedness have received such payment in full in cash, or such payment is duly provided for, any distribution from Borrower
or its assets to which Lender would otherwise be entitled shall be made to the holders of the Senior Indebtedness. Subject to Senior Termination, Lender shall be subrogated to the rights of the holders of the Senior Indebtedness to receive payments
or distribution of assets of Borrower applicable to the Senior Indebtedness until all amounts owing on the Subordinated Indebtedness shall be paid in full. 

(c) Provided that repayment of the principal and any interest owing hereunder on or after the Maturity Date would not cause or result in a
Default or Event of Default (as such terms are defined under the Senior Credit Agreements), the Borrower may pay all amounts due hereunder to the Lender. However, if the Lender receives any payment on this Note during the occurrence or continuance
of a Default or Event of Default (as such terms are defined under the Senior Credit Agreements) prior to Senior Termination, the Lender will hold the amount so received in trust for the holders of the Senior Indebtedness and will forthwith turn over
such payment to ATB in the form received (except for the endorsement of the Lender where necessary) for application to then-existing Senior Indebtedness (whether or not due), in such manner of application as ATB may deem appropriate. If the Lender
fails to make any endorsement required under this Agreement, ATB, or any of its officers or employees or agents on behalf of the ATB, is hereby irrevocably appointed as the
attorney-in-fact (which appointment is coupled with an interest) for the Lender to make such endorsement in the Lender’s name. 

(d) Lender shall not create, assume, or suffer to exist any liens on any collateral to secure repayment of the Subordinated Indebtedness. Any
liens existing in violation of the foregoing shall be fully subordinate to any lien in favor of any holders of Senior Indebtedness which secures any Senior Indebtedness. Borrower and Lender shall take any steps necessary to fully effect the release
of any such Lien in favor of Lender. 
 (e) The provisions of this Section 1 are irrevocable and the holders of the Senior Indebtedness
may, without notice to any of the parties hereto and without impairing or releasing the obligations of Borrower and Lender hereunder: (i) create Senior Indebtedness by extending credit to Borrower; (ii) change the terms of or increase the
amount of the Senior Indebtedness by increasing, extending, rearranging, refinancing, amending, supplementing, or otherwise modifying any agreement creating Senior Indebtedness; (iii) sell, exchange, release, or otherwise deal with any
collateral securing any Senior Indebtedness; (iv) release anyone, including Borrower or any guarantor, liable in any manner for the payment or collection of any Senior Indebtedness; (v) exercise or refrain from exercising any rights
against Borrower or any other Person; or (vi) apply any sums received by any holders of the Senior Indebtedness, from whatever source, to the payment of the Senior Indebtedness. 

  
 2 

 (f) No present or future holder of Senior Indebtedness shall be prejudiced in its right to
enforce subordination of Lender by any act or failure to act on the part of the Borrower or any other Person whether or not such act or failure shall give rise to any right of rescission or other claim or cause of action on the part of Lender. The
holders of Senior Indebtedness are entitled to the benefits of the subordination provisions contained in this Note and are third-party beneficiaries thereof. The provisions regarding the subordination of the Subordinated Indebtedness to the Senior
Indebtedness may not be amended or otherwise modified without the prior written consent of the holders of the Senior Indebtedness. 
 (g) The
provisions of this Section 1 shall be enforceable against Borrower or Lender by the Senior Lenders or any other holder of Senior Indebtedness. By its signature below and acceptance of this Note, Lender agrees to be bound by and to comply with
the provisions of this Section 1. 
 2. Maturity Date. The maturity date (the “Maturity Date”) shall be
November 25, 2018 unless the Lenders otherwise consent in writing. 
 3. Interest Rate. Interest on this Note shall accrue on the
outstanding principal balance at a monthly rate of ONE percent (1%). Interest shall accrue on the outstanding principal balance from and after the Maturity Date until the outstanding principal balance, and all applicable interest, is paid in full.

 4. Payments. All payments of principal and interest hereon shall be made at Lender’s address set forth in paragraph 10 below,
in immediately available funds and without set-off or counterclaim or deduction of any kind. 
 5.
Insolvency Proceedings 
 (a) Filing of Motions. Until Senior Termination has occurred, Lender agrees that it shall not, in or
in connection with any Insolvency Proceeding, file any pleadings or motions, take any position at any hearing or proceeding of any nature, or otherwise take any action whatsoever, including without limitation with respect to the determination of any
claims held by a Senior Lender (including the validity and enforceability thereof) or the value of any claims of such parties; provided that Lender may file a proof of claim in an Insolvency Proceeding subject to the limitations contained in
this Note and only if consistent with the terms and the limitations on Lender imposed hereby. 
 (b) Financing Matters. If
Borrower becomes subject to any Insolvency Proceeding, and if a Senior Lender desires to consent (or not object) to the sale, use or lease of cash or other collateral under the BIA or otherwise or to provide financing to Borrower under the BIA or
otherwise, to consent (or not object) to the provision of such financing to Borrower by any third party (a “DIP Financing”), then the Lender agrees that it (i) will be deemed to have consented to, will raise no objection to,
nor support any other person objecting to, the sale, use or lease of such cash or other collateral or to such DIP Financing, (ii) will not request or accept any form of adequate protection or any other relief in connection with the sale, use or
lease of such cash or other collateral or such DIP Financing except as set forth in Section 5(d) hereof, and (iii) agrees that notice received two (2) calendar days prior to the entry of an order approving such usage of cash
collateral or approving such financing shall be adequate notice. 

  
 3 

 (c) Relief From the Automatic Stay. Lender agrees that it will not seek relief from
the automatic stay or from any other stay in any Insolvency Proceeding or take any action in derogation thereof without the prior written consent of the Senior Lender. 

(d) Adequate Protection. Lender agrees that it shall not object, contest, or support any other person objecting to or contesting,
(i) any request by a Senior Lender for adequate protection or (ii) any objection by a Senior Lender to any motion, relief, action or proceeding based on a claim of a lack of adequate protection or (iii) the payment of interest, fees,
expenses or other amounts to a Senior Lender under the BIA. Notwithstanding anything contained in this Section 5(d) and in Section 5(b) hereof, in any Insolvency Proceeding, (x) the Lender may seek, support, accept or retain adequate
protection (A) only if a Senior Lender are granted adequate protection that includes replacement liens on additional collateral and superpriority claims and a Senior Lender does not object to the adequate protection being provided to the Senior
Lenders and (B) solely in the form of superpriority claims junior in all respects to the superpriority claims granted to the Senior Lenders, and (y) in the event Lender receives adequate protection, then Lender agrees that the Senior
Lenders shall have a senior claim on such adequate protection as security for the Senior Indebtedness. 
 (e) Avoidance Issues. If a
Senior Lender is required in any Insolvency Proceeding or otherwise to disgorge, turn over or otherwise pay to the estate of Borrower, because such amount was avoided or ordered to be paid or disgorged for any reason, including without limitation
because it was found to be a fraudulent or preferential transfer, any amount (a “Recovery”), whether received as proceeds of security, enforcement of any right of set-off or otherwise, then
the Senior Indebtedness shall be reinstated to the extent of such Recovery and deemed to be outstanding as if such payment had not occurred and the Maturity Date shall be deemed not to have occurred. Lender agrees it shall not be entitled to benefit
from any avoidance action affecting or otherwise relating to any distribution or allocation made in accordance with this Note, whether by preference or otherwise, it being understood and agreed that the benefit of such avoidance action otherwise
allocable to them shall instead be allocated and turned over for application in accordance with the priorities set forth in this Note. 
 (f)
Asset Dispositions in an Insolvency Proceeding. Lender shall not, in an Insolvency Proceeding or otherwise, oppose any sale or disposition of any assets of Borrower that is supported by the Lender will be deemed to have consented under the
BIA or otherwise to any sale supported by the holders of the Senior Indebtedness. 
 (g) No Waivers of Rights of First Priority Secured
Parties. Nothing contained herein shall prohibit or in any way limit the Senior Lenders from objecting in any Insolvency Proceeding or otherwise to any action taken by Lender, including the seeking by Lender of adequate protection or the
assertion by Lender of any of its rights and remedies under this Note or otherwise. 

  
 4 

 (h) Plans of Reorganization. Lender shall not support or vote in favor of any plan of
reorganization (and shall vote and shall be deemed to have voted to reject any plan of reorganization) unless such plan (i) pays off, in cash in full, all Senior Indebtedness or (ii) is accepted by the Senior Lenders. To the extent that
Lender attempts to vote or votes in favor of any plan or reorganization in a manner inconsistent with this Section 5(h), Lender irrevocably agrees that the Senior Lenders may be, and may be deemed, an “authorized agent” of such party
under the provisions of the BIA or the Companies’ Creditors Arrangement Act (Canada), respectively, that any Senior Lender is irrevocably appointed Lender’s attorney in fact, coupled with an interest, to vote on Lender’s
behalf in such proceedings, and that such Senior Lender shall be authorized and entitled to submit a superseding ballot or vote, as the case may be, on behalf of Lender that is consistent herewith. 

(i) Other Matters. To the extent that Lender has or acquires rights with respect to any amounts due to Lender under this Note, Lender
agrees not to assert any of such rights without the prior written consent of the Senior Lenders; provided that if requested by the Senior Lenders, Lender shall timely exercise such rights in the manner requested by the Senior Lenders,
including any rights to payments in respect of such rights. 
 6. Costs and Expenses. If Borrower fails to pay any amount due under
this Note and Lender has to take any action to collect the amount due or to exercise its rights under this Note (including without limitation retaining attorneys for collection of this Note), or if any suit or proceeding is brought for the recovery
of all or any part of or for protection of the indebtedness or to foreclose on this Note, then Borrower agrees to pay on demand all reasonable costs and expenses of any such action to collect, suit or proceeding, or any appeal of any such suit or
proceeding, incurred by Lender, including without limitation the reasonable fees and disbursements of Lender’s attorney and their staff. 

7. Waiver. Borrower waives presentment, demand, notice of dishonor and protest, and assents to any extension of time with respect to any
payment due under this Note, to any substitution or release of collateral and to the addition or release of any party. No waiver of any payment or other right under this Note shall operate as a waiver of any other payment or right. 

8. Illegality. If any provision in this Note shall be held invalid, illegal or unenforceable in any jurisdiction, the validity, legality
or enforceability of any defective provisions shall not be in any way affected or impaired in any other jurisdiction. 
 9. No Waiver.
No delay or failure of the holders of this Note in the exercise of any right or remedy provided for hereunder shall be deemed a waiver of such right by the holders hereof, and no exercise of any right or remedy shall be deemed a waiver of any other
right or remedy that the holder may have. 
 10. Notices. All notices shall be in writing. Notices shall become effective
(a) upon personal delivery, including, but not limited to, delivery by overnight mail or courier service, or (b) in the case of notice by telecommunications device, when properly transmitted, in each case addressed as follows: 

To Borrower: 
 Sundial Growers
Inc. 
 Site 4 Box 17 RR1 

Airdrie, Alberta T4B 2A3 

Attention: Torsten Kuenzlen, CEO 

Telephone: 403-948-5227 

Email: tkuenzlen@sundialgrowers.com 

  
 5 

 To Lender: 

2119694 Alberta Inc. 
 c/o Gowling
WLG (Canada) LLP 
 1600, 421-7TH Avenue S.W.

 Calgary, Alberta, T2P 4K9 

Attention: Gregory Peterson 

Telephone: 403-292-9812 

Facsimile: 403-695-3522 

Any party may, by written notice so delivered to the other party, change the address or individual to which delivery shall thereafter be made. 

11. Assignment. Lender shall not transfer or assign, in whole or in part, this Note, without the prior written consent of the Borrower.

 12. Governing Law. The performance and construction of this Note and the other Loan Documents shall be governed by the internal
laws of the Province of Alberta. Borrower agrees that any suit, action or proceeding instituted against Borrower with respect to any of the obligations owing under the Senior Credit Agreements, the collateral, this Note or any of the other loan
documents may be brought in any court of competent jurisdiction located in the Province of Alberta. Borrower hereby irrevocably accepts and submits to the jurisdiction of the aforesaid courts in any such suit, action or proceeding. 

[SIGNATURE PAGE TO FOLLOW] 

  
 6 

 IN WITNESS WHEREOF the undersigned has caused this Note to be signed in its corporate name by its duly
authorized officer as of the date first written above. 
  

			
	BORROWER:
	
	SUNDIAL GROWERS INC.
		
	By:	 	  

		 	Name:
		 	Title:

  

			
	AGREED TO AND ACKNOWLEDGED:
	
	2119694 ALBERTA INC., as Lender

			
		
	By:	 	  

	Name:
	Title:

 Signature Page to Second Tranche Subordinated Promissory Note – Cdn.$6,931,426.50 

Sundial Growers Inc., as Borrower and 

2119694 Alberta Inc., as Lender 

 EXHIBIT 2.3.4 

Form of Guarantee Agreement 

(see attached) 

  
 E-4 

 Subordinated Guarantee 

made by 
 KAMCAN PRODUCTS INC.

 – and – 

2011296 ALBERTA INC. 

– and – 
 SPROUT
TECHNOLOGIES INC. 
 in favour of 

2119694 ALBERTA INC. 
 as
of 
 June ___, 2018 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
	 ARTICLE 1 - SUBORDINATED GUARANTEE
	  	 	1	 
			
	 1.01
	  	Subordinated Guarantee	  	 	1	 
	 1.02
	  	Indemnity	  	 	1	 
	 1.03
	  	Primary Obligation	  	 	1	 
	 1.04
	  	Obligations Absolute	  	 	2	 
		
	 ARTICLE 2 - DEALINGS WITH OBLIGOR AND OTHERS
	  	 	2	 
			
	 2.01
	  	No Release	  	 	2	 
	 2.02
	  	No Exhaustion of Remedies	  	 	3	 
	 2.03
	  	Prima Facie Evidence	  	 	4	 
	 2.04
	  	No Set-off	  	 	4	 
	 2.05
	  	Continuing Guarantee	  	 	4	 
		
	 ARTICLE 3 - DEMAND
	  	 	4	 
			
	 3.01
	  	Demand	  	 	4	 
	 3.02
	  	Stay of Acceleration	  	 	4	 
	 3.03
	  	Interest	  	 	5	 
		
	 ARTICLE 4 - SUBORDINATION
	  	 	5	 
			
	 4.01
	  	Subordination to Senior Indebtedness	  	 	5	 
		
	 ARTICLE 5 - GENERAL
	  	 	6	 
			
	 5.01
	  	Waiver of Notices	  	 	6	 
	 5.02
	  	Joint and Several Obligations	  	 	6	 
	 5.03
	  	Binding Effect of the Guarantee	  	 	6	 
	 5.04
	  	Financial Condition of Obligor	  	 	7	 
	 5.05
	  	Amendments and Waivers	  	 	7	 
	 5.06
	  	Severability	  	 	7	 
	 5.07
	  	Notices	  	 	7	 
	 5.08
	  	Discharge	  	 	7	 
	 5.09
	  	Remedies Cumulative	  	 	7	 
	 5.10
	  	Governing Law	  	 	7	 
	 5.11
	  	Attornment	  	 	8	 
	 5.12
	  	Headings	  	 	8	 
	 5.13
	  	Extended Meanings	  	 	8	 
	 5.14
	  	Interest Calculations and Payments	  	 	8	 
	 5.15
	  	Interest Act (Canada)	  	 	8	 
	 5.16
	  	Executed Copy	  	 	8	 

  

 Subordinated Guarantee 

This Subordinated Guarantee is made
                            , 2018. 

 

	A.	 The undersigned (collectively, the “Guarantors” and each a
“Guarantor”) has agreed to provide 2119694 Alberta Inc. (the “Vendor”) with a guarantee of the Obligations (as hereinafter defined) of Sundial Growers Inc. (the “Obligor”); 

 

	B.	 Each Guarantor has agreed that if the guarantee is not enforceable, such Guarantor will indemnify the Vendor or
be liable as primary obligor; 

  

	C.	 In this instrument, unless something in the subject matter or context is inconsistent therewith,
“Guarantee” means this joint and several subordinated instrument including its recitals as amended from time to time; 

NOW THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, each Guarantor agrees with the Vendor as follows: 
 ARTICLE 1 – SUBORDINATED GUARANTEE 

 

	1.01	 Subordinated Guarantee 

Each Guarantor hereby unconditionally and irrevocably guarantees, subject to Section 4.01 hereof, payment of all the matured debts and
liabilities remaining unpaid by the Obligor to the Vendor pursuant to the share purchase agreement made as of June 1, 2018, as may be amended from time to time (the “SPA”), between the Obligor and the Vendor (collectively, the
“Obligations”). 
  

	1.02	 Indemnity 

If any Obligation is not duly paid by the Obligor and is not recoverable under Section 1.01 for any reason whatsoever, each Guarantor
will, as a separate and distinct obligation, indemnify and save harmless the Vendor from and against all losses resulting from the failure of such Obligor to pay such Obligation. 

 

	1.03	 Primary Obligation 

If any Obligation is not duly paid by any Obligor and is not recoverable under Section 1.01 or the Vendor is not indemnified under
Section 1.02, in each case, for any reason whatsoever, such Obligation will, as a separate and distinct obligation, be paid by and be recoverable from each Guarantor as primary obligor on a joint and several basis. 

	1.04	 Obligations Absolute 

The liability of each Guarantor hereunder will be for the full amount of the Obligations without apportionment, limitation or restriction of
any kind, will be continuing, absolute and unconditional and will not be affected by any law, regulation or other event, condition or circumstance or any other act, delay, abstention or omission to act of any kind by the Obligor, the Secured Party
or any other person, that might constitute a legal or equitable defence to or a discharge, limitation or reduction of any Guarantor’s Obligations hereunder, other than as a result of the indefeasible payment or extinguishment in full of the
Obligations, including: 
  

	 	(a)	 the invalidity, illegality or lack of enforceability of the Obligations or any part thereof or of any agreement
between the Obligor and the Vendor; 

  

	 	(b)	 any impossibility, impracticability, frustration of purpose, illegality, force majeure or act of
government; 

  

	 	(c)	 the bankruptcy, winding-up, liquidation, dissolution, moratorium,
readjustment of debt or insolvency of the Obligor or any other person, including any discharge or bar against collection of any of the Obligations, or the amalgamation of or any change in the existence, structure, name, status, function, control,
constitution or ownership of the Obligor, any Guarantor, the Vendor or any other person; 

  

	 	(d)	 any lack or limitation of power, incapacity or disability on the part of the Obligor or of the directors,
partners or agents thereof or any other irregularity, defect or informality on the part of the Obligor in its obligations to the Vendor; 

  

	 	(e)	 any limitation, postponement, prohibition, subordination or other restriction on the right of the Vendor to
payment of the Obligations; or 

  

	 	(f)	 any interest of the Vendor in any property whether as owner thereof or as holder of a security interest therein
or thereon, being invalidated, voided, declared fraudulent or preferential or otherwise set aside, or by reason of any impairment of any right or recourse to collateral, 

and each of the foregoing is hereby waived by each Guarantor to the fullest extent permitted under applicable law. The foregoing provisions apply and the
foregoing waivers will be effective to the fullest extent permitted under applicable law even if the effect of any action or failure to take action by the Vendor is to destroy or diminish any Guarantor’s subrogation rights, any Guarantor’s
right to proceed against the Obligor for reimbursement, any Guarantor’s right to recover contribution from any other person or any other right or remedy of any Guarantor. 

ARTICLE 2 - DEALINGS WITH OBLIGOR AND OTHERS 
  

	2.01	 No Release 

The liability of each Guarantor hereunder will not be released, discharged, limited or in any way affected by anything done, suffered,
permitted or omitted to be done by the Vendor in connection with any duties or liabilities of the Obligor to the Vendor or any security therefor including any loss of or in respect of any security received by the Vendor from the Obligor or others.
Without limiting the generality of the foregoing and without releasing, discharging, limiting or otherwise affecting, in whole or in part, each Guarantor’s liability hereunder, the Vendor may, without obtaining the consent of or giving notice
to any Guarantor: 

  
 2 

	(a)	 discontinue, reduce, increase or otherwise vary the credit of the Obligor in any manner whatsoever;

  

	(b)	 make any change in the time, manner or place of payment under, or in any other term of, any agreement between
the Obligor and the Vendor or waive, in whole or in part and with or without conditions, the failure on the part of the Obligor to carry out any of its obligations under any such agreement; 

 

	(c)	 grant time, renewals, extensions, indulgences, releases and discharges to the Obligor or any other person;

  

	(d)	 release or substitute, in whole or in part, any Guarantor of the Obligations or obtain a new guarantee of any
of the Obligations from any other person; 

  

	(e)	 subordinate, release, take or enforce, refrain from taking or enforcing or omit to take or enforce security or
collateral from the Obligor or any other person or perfect, refrain from perfecting or omit to perfect security or collateral of the Obligor or any other person, whether occasioned by the fault of the Vendor or otherwise; 

 

	(f)	 to the extent permitted under applicable law, give or refrain from giving to the Obligor, any Guarantor or any
other person notice of any sale or other disposition of any property securing any of the Obligations or any other guarantee thereof, or any notice that may be given in connection with any sale or other disposition of any such property;

  

	(g)	 accept compromises from the Obligor or any other person; 

 

	(h)	 marshal, refrain from marshalling or omit to marshal assets; 

 

	(i)	 apply all money or other property at any time received from the Obligor or from its security upon such part of
the Obligations as the Vendor may see fit or vary any such application in whole or in part from time to time as the Vendor may see fit; and 

  

	(j)	 otherwise deal, delay or refrain from dealing or omit to deal with the Obligor, each Guarantor and all other
persons and security as the Vendor may see fit and do, delay or refrain from doing or omit to do any other act or thing that under applicable law might otherwise have the effect, directly or indirectly, of releasing, discharging, limiting or
otherwise affecting in whole or in part any Guarantor’s liability hereunder. 

  

	2.02	 No Exhaustion of Remedies 

The Vendor will not be bound or obligated to exhaust its recourse against the Obligor or other persons or any security or collateral it may
hold or take any other action before being entitled to demand payment from any Guarantor hereunder. 

  
 3 

	2.03	 Prima Facie Evidence 

Any account settled or stated in writing by or between the Vendor and the Obligor in respect of any Obligation will be prima facie evidence
that the balance or amount thereof appearing due to the Vendor is so due. 
  

	2.04	 No Set-off 

In any claim by the Vendor against any Guarantor, no Guarantor may claim or assert any set-off,
counterclaim, claim or other right that either such Guarantor or the Obligor may have against the Vendor or any other person. 
  

	2.05	 Continuing Guarantee 

The obligations of each Guarantor hereunder will constitute and be continuing obligations and will apply to and secure any ultimate balance due
or remaining due to the Vendor and will not be considered as wholly or partially satisfied by the payment or liquidation at any time of any sum of money for the time being due or remaining unpaid to the Vendor. This Guarantee will continue to be
effective even if at any time any payment of any of the Obligations is rendered unenforceable or is rescinded or must otherwise be returned by the Vendor upon the occurrence of any action or event including the insolvency, bankruptcy or
reorganization of the Obligor or any Guarantor or otherwise, all as though such payment had not been made. 
 ARTICLE 3 - DEMAND 

 

	3.01	 Demand 

If any Obligation is not paid for any reason whatsoever when due and payable, the Vendor may treat all Obligations as due and payable and may
demand forthwith from each Guarantor the total amount guaranteed hereunder whether or not such other Obligations are yet due and payable at the time of demand for payment hereunder. Each Guarantor, on a joint and several basis, will pay to or
perform in favour of the Vendor the total amount (or the total performance) guaranteed hereunder forthwith after demand therefor is made to such Guarantor. In addition, each Guarantor will pay, on a joint and several basis, to the Vendor forthwith
upon demand all costs and expenses incurred by the Vendor in collecting and enforcing the Obligations and in enforcing this Guarantee, including reasonable legal fees and disbursements on a full indemnity basis. 

 

	3.02	 Stay of Acceleration 

If acceleration of the time for payment of any amount payable by the Obligor in respect of the Obligations is stayed upon the insolvency,
bankruptcy, arrangement or reorganization of the Obligor or any moratorium affecting the payment of the Obligations, all such amounts that would otherwise be subject to acceleration will nonetheless be payable by each Guarantor hereunder forthwith
on the demand by the Vendor. 

  
 4 

	3.03	 Interest 

Without duplication of interest accruing on the Obligations, each Guarantor will pay interest to the Vendor at the rate or rates provided in
the SPA for such Obligations, or, in the event no such rate is provided for therein, on the unpaid portion of all amounts payable by such Guarantor under this Guarantee, including all costs and expenses incurred by the Vendor in collecting and
enforcing the Obligations and in enforcing this Guarantee, such interest to accrue from and including the date of demand by the Vendor on such Guarantor to but excluding the date of payment thereof by such Guarantor. 

ARTICLE 4 - SUBORDINATION 
  

	4.01	 Subordination to Senior Indebtedness 

 

	 	(a)	 Notwithstanding anything contained within this Guarantee, the terms of this Section 4.01 has paramountcy
over the terms of every other section of this Guarantee. 

  

	 	(b)	 The Vendor acknowledges and agrees that each Guarantor’s obligations under this Guarantee to make any
payment with respect to the SPA are expressly postponed and subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of such Guarantor’s guarantee or other financial assistance given
in connection with the indebtedness owed by the Obligor to its senior secured creditors, which include ATB Financial, Cannabis Wheaton Income Corp. and such other lenders or replacement lenders that the Obligor, and subsequently each Guarantor, may
become liable to (the “Senior Indebtedness”), in accordance with the terms of such Senior Indebtedness whether now outstanding or hereinafter incurred. Upon any distribution of assets of a Guarantor upon any dissolution, winding-up, liquidation or reorganization of such Guarantor, whether in bankruptcy, insolvency, reorganization or receivership proceedings or upon an assignment for the benefit of creditors or any other marshalling
of the assets and liabilities of such Guarantor or otherwise, 

  

	 	(i)	 the holders of all Senior Indebtedness shall be entitled to receive payment in full of any principal thereof,
premium, if any, interest, redemption price, if any, or any other amount payable, and any interest thereon, due thereon before any other person is entitled to receive any payment pursuant to this Guarantee in respect of the principal, premium,
interest, redemption price or any other amount payable of or in respect of the SPA, or interest on overdue amounts thereof; 

  

	 	(ii)	 any payment or distribution of assets of a Guarantor of any kind or character, whether in cash, property or
securities, to which the Vendor would be entitled except for the provisions of this Section 4.01 shall be paid by the liquidating trustee or agent or other person making such payment or distribution, whether a trustee in bankruptcy, a receiver
or liquidating trustee or otherwise, directly to the holders of Senior 

  
 5 

	 	
Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been
issued, as their respective interests may appear, to the extent necessary to make payment in full of all such Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of such Senior
Indebtedness in respect thereof; and 

  

	 	(iii)	 in the event that, notwithstanding the foregoing, any payment or distribution of assets of a Guarantor of any
kind or character, whether in cash, property or securities, shall be received by the Vendor, such payment or distribution shall be paid over to the holders of such Senior Indebtedness or their representative or representatives or to the trustee or
trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, as their respective interests may appear, for application to the payment of all Senior Indebtedness remaining unpaid until all
such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness in respect thereof. 

 

	 	(c)	 No payment by a Guarantor on account of principal, premium, interest, redemption price or any other amount
payable of or on the SPA shall be made unless full payment of amounts then due for principal, premium, if any, sinking funds and interest or any other amount payable on Senior Indebtedness has been made or duly provided for in money or money’s
worth. 

 ARTICLE 5 - GENERAL 
  

	5.01	 Waiver of Notices 

Each Guarantor hereby waives promptness, diligence, presentment, demand of payment, notice of acceptance and any other notice with respect to
this Guarantee and the Obligations guaranteed hereunder, except for the demand pursuant to Section 3.01. 
  

	5.02	 Joint and Several Obligations 

Each obligation of a Guarantor hereunder is both several and joint with each other Guarantor. 

 

	5.03	 Binding Effect of the Guarantee 

This Guarantee will be binding upon the successors of each Guarantor and will enure to the benefit of the Vendor and its successors and
assigns. 

  
 6 

	5.04	 Financial Condition of Obligor 

Each Guarantor is fully aware of the financial condition of the Obligor and acknowledges that it will receive a benefit from the Vendor
entering into the SPA. So long as any Guarantor’s obligations hereunder remain undischarged, such Guarantor will assume sole responsibility for keeping itself informed of the financial condition of the Obligor and of all circumstances bearing
upon the nature, scope and extent of the risk that such Guarantor assumes or incurs hereunder and the Vendor will not have a duty to advise any Guarantor of information known to the Vendor regarding such circumstances or risks. 

 

	5.05	 Amendments and Waivers 

No amendment to this Guarantee will be valid or binding unless set forth in writing and duly executed by each Guarantor and the Vendor. No
waiver of any breach of any provision of this Guarantee will be effective or binding unless made in writing and signed by the party purporting to give the same and, unless otherwise provided in the written waiver, will be limited to the specific
breach waived. 
  

	5.06	 Severability 

If any provision of this Guarantee is determined by any court of competent jurisdiction to be illegal or unenforceable, that provision will be
severed from this Guarantee and the remaining provisions will continue in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to either the Vendor
or the Guarantors. 
  

	5.07	 Notices 

Any demand, notice or other communication to be given under this Guarantee to any Guarantor or the Vendor shall be effective if given in
accordance with the provisions of the SPA as to the giving of notice to each, and each Guarantor and the Vendor may change their respective address for notices in accordance with the said provisions. 

 

	5.08	 Discharge 

Unless all obligations of a Guarantor hereunder have been indefeasibly paid or performed, such Guarantor will not be discharged from any of its
obligations hereunder except by a release or discharge signed in writing by the Vendor. 
  

	5.09	 Remedies Cumulative 

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

 

	5.10	 Governing Law 

This Guarantee is governed by and will be construed in accordance with the laws of the Province of Alberta and the laws of Canada applicable
therein. 

  
 7 

	5.11	 Attornment 

For the purpose of all legal proceedings this Guarantee will be deemed to have been performed in the Province of Alberta and the courts of the
Province of Alberta will have jurisdiction to entertain any action arising under this Guarantee. Each Guarantor and the Vendor each hereby attorns to the jurisdiction of the courts of the Province of Alberta. 

 

	5.12	 Headings 

The division of this Guarantee into Articles and Sections and the insertion of headings are for convenience of reference only and do not affect
the construction or interpretation of this Guarantee. The terms “hereof”, “hereunder” and similar expressions refer to this Guarantee and not to any particular Article, Section or other portion hereof and include any agreement
supplemental hereto. Unless something in the subject matter or context is inconsistent therewith, references herein to Articles and Sections are to Articles and Sections of this Guarantee. 

 

	5.13	 Extended Meanings 

In this Guarantee words importing the singular number only include the plural and vice versa, words importing any gender include all genders
and words importing persons include individuals, corporations, limited and unlimited liability companies, general and limited partnerships, associations, trusts, unincorporated organizations, joint ventures and governmental authorities. The term
“including” means “including without limiting the generality of the foregoing”. 
  

	5.14	 Interest Calculations and Payments 

Unless otherwise stated, wherever in this Guarantee reference is made to a rate of interest “per annum” or a similar expression is
used, such interest will be calculated on the basis of a calendar year of 365 days or 366 days, as the case may be, and using the nominal rate method of calculation and not the effective rate method of calculation or on any other basis that gives
effect to the principle of deemed reinvestment of interest. Interest will continue to accrue after maturity and default and/or judgment, if any, until payment thereof, and interest will accrue on overdue interest, if any. 

 

	5.15	 Interest Act (Canada) 

For the purposes of this Guarantee, whenever interest to be paid hereunder is to be calculated on the basis of 360 days or any other period of
time that is less than a calendar year, the yearly rate of interest to which the rate determined pursuant to such calculation is equivalent is the rate so determined multiplied by the actual number of days in the calendar year in which the same is
to be ascertained and divided by 360 or such other number of days in such period, as the case may be. 
  

	5.16	 Executed Copy 

Each Guarantor acknowledges receipt of a fully executed copy of this Guarantee. 

  
 8 

 [Signature page follows] 

  
 9 

 IN WITNESS WHEREOF each Guarantor has signed, sealed and delivered this Guarantee.

  

							
	GUARANTORS:	 		 	KAMCAN PRODUCTS INC.
				
	  
	 		 	Per:	 	  

	Date of Execution	 		 		 	Name: c/s
		 		 		 	Title:
				
		 		 	Per:	 	  

		 		 		 	Name:
		 		 		 	Title:

  

			
	2011296 ALBERTA INC.
		
	Per:	 	  

		 	Name: c/s
		 	Title:
		
	Per:	 	  

		 	Name:
		 	Title:
	
	SPROUT TECHNOLOGIES INC.
		
	Per:	 	  

		 	Name: c/s
		 	Title:
		
	Per:	 	  

		 	Name:
		 	Title:

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