Document:

Commercial
Lease

 

THIS
LEASE made as of January 24th, 2013

 

	BETWEEN:	VLADIKOVIC
    HOLDINGS LTD.
	 	7411
    Vantage Way, Delta, B.C. V4G 

    1C9 (the “Landlord”)
	 	 
	AND:	BLAINE
    COPELAND DBA GO GREEN MM

    AND BLAINE COPELAND
	 	10969
                                         Okanagan Centre Road West, Kelowna, B.C. V4V

                                                                                2J5
                                         (the “Tenant”)

 

IN
CONSIDERATION of the mutual covenants contained herein, the Landlord and Tenant hereby agree as follows:

 

ARTICLE
1

INTERPRETATION

 

1.1
Definitions. In this Lease the following terms shall have the following meanings:

 

“Additional
Rent” means all other amounts payable by the Tenant to the Landlord or to be discharged as Rent under this Lease;

 

“Building”
means the building(s) located on the Land, including all alterations and additions thereto and replacements thereof;

 

“Commencement
Date”: means February 1st, 2013

 

“Event
of Default” means an event referred to in Section 10.2;

 

“Land”
means the land known municipally as 9576, 9586 and 9596 Haldane Road, Kelowna, B.C. and legally described as Lo7 7, Sec 2, TWP
20, Plan 37993, ODYD;

 

“Lease”
means this lease and any Schedules attached hereto which are referred to in this lease and every executed instrument which
by its terms amends, modifies or supplements this lease;

 

“Lease
Year” means each successive periods of twelve (12) calendar months during the Term ending on an anniversary of the Commencement
Date; provided that if the Landlord deems it necessary for the Landlord’s accounting purposes, the Landlord may by written
notice to the Tenant specify another day on which each subsequent lease year is to commence and in such event, the appropriate
adjustments shall be made accordingly;

 

“Leased
Premises” means that portion of the Landlord’s Property and the Building described as 9576, 9586 & 9596 Haldane
Road, Kelowna, B.C. and shall consist of approximately 7,554 sq. ft. (Seven Thousand Five Hundred Fifty Four square feet) rentable
square feet of Bay 6, 7 and Bay 8 on the ground floor as shown outlined in heavy black line on the floor plan attached as Schedule
“A”;

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

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“Management
fee” shall mean an amount equal to five (5) percent annum of the Annual Basic Rent, such Management Fee to be paid in
equal monthly installments on the first day of each month during the Term

 

“Minimum
Rent” means for each Lease Year, the amounts set out hereunder:

 

	Year
    of Term	 	Aggregate
    Annual Minimum Rent	 	 	Monthly
    Minimum Rent	 
	Year l	 	$	64,209.00	 	 	$	5,350.75	 
	Year 2	 	$	64,209.00	 	 	$	5,350.75	 
	Year 3	 	$	64,209.00	 	 	$	5,350.75	 
	Year 4	 	$	64,209.00	 	 	$	5,350.75	 
	Year 5	 	$	64,209.00	 	 	$	5,350.75	 

 

“Occupancy
Date” means February 1st, 2013;

 

“Permitted
Use” means the business of Legal medical marijuana grow facility authorize by all City, Provincial and Government institutions;

 

“Rent”
means the aggregate of all amounts payable by the Tenant to the Landlord under this Lease;

 

“Security
Deposit and/or Last Month’s Rent” means the amount held by the Landlord as a Security Deposit and/or Last Month’s
Rent including HST/GST/PST and in the case of this Tenancy amounts $5,992.84 as Security Deposit and $5,992.84 as Last Month’s
Rent, for a total of Eleven Thousand Nine Hundred and Eighty Five Dollars and 68 cents ($11,985.68) including applicable taxes
in the amount of One Thousand Eighty Four Dollars and 18 cents ($1,084.18) “Term” means a period of five (5)
years, commencing on the Commencement Date or any renewal period hereunder;

 

“Termination
Date” means two months, unless earlier terminated as provided in this Lease;

 

“Value
Taxes” means all goods and services taxes, sale taxes, value-added taxes, and any other taxes imposed on the Landlord
with respect to this Lease, the services provided hereunder or the Rent

 

ARTICLE
2

GRANT
OF LEASE AND GENERAL COVENANTS

 

		2.1	Grant.
                                         The Landlord hereby leases to the Tenant and the Tenant hereby leases from the
                                         Landlord the Leased Premises, to have and to hold during the Term, subject to the terms
                                         and conditions of this Lease.

 

		2.2	Landlord’s
                                         General Covenants. The Landlord covenants with the Tenant:

 

		(a)	for
                                         quiet enjoyment of the Leased Premises; and

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

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		(b)	to
                                         observe and perform all the covenants and obligations of the Landlord herein.

 

		2.3	Tenant’s
                                         General Covenants. The Tenant covenants with the Landlord:

 

		(a)	to
                                         pay Rent; and

 

		(b)	to
                                         observe and perform all the covenants and obligations of the Tenant herein.

 

ARTICLE
3

TERM
AND POSSESSION

 

		3.1	Term.
                                         The Term of this Lease shall begin on the Commencement Date and end on the Termination
                                         Date unless terminated earlier as provided in this Lease.

 

		3.2	Possession
                                         of Leased Premises. Notwithstanding the Term, the Tenant shall have occupancy
                                         of the Leased Premises from and after the Occupancy Date to the Commencement Date, during
                                         which period the Tenant shall pay all Rent, other than Minimum Rent, and shall observe
                                         and perform all the covenants and obligations of the Tenant herein.

 

ARTICLE
4

RENT

 

		4.1	Rent.
                                         The Tenant shall pay to the Landlord as Rent for the Leased Premises the aggregate
                                         of.

 

		(a)	Minimum
                                         Rent in respect of each year of the Term or renewal terms as the case may be, payable
                                         in advance and without notice or demand in monthly installments commencing on the Commencement
                                         Date; and

 

		(b)	Additional
                                         Rent at the times and in the manner provided in this Lease or, if not so provided, as
                                         reasonably required by the Landlord.

 

If
the Commencement Date is not the first day of a calendar month, Rent for the period from the Commencement Date to the first day
of the next calendar month shall be pro-rated on a per diem basis and paid on the Commencement Date and thereafter all subsequent
monthly installments of Rent shall be paid in advance on the first day of each calendar month.

 

		4.2	Net
                                         Lease. It is the intent of the Landlord and the Tenant that this Lease shall
                                         be fully net to the Landlord, provided that the Tenant shall not be responsible for costs
                                         and expenses expressly excluded by the terms of this Lease, and including but not limited
                                         to the following:

 

		(a)	mortgage
                                         payments of capital or interest on any mortgage affecting the Leased Premises;

 

		(b)	any
                                         income taxes of the Landlord, except to the extent that such income taxes are imposed
                                         in lieu of real prope11y taxes;

 

		(c)	any
                                         ground rental;

 

		(d)	any
                                         structural repairs or replacements; and

  

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

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		(e)	any
                                         expenditures with respect to the Leased Premises which are of a capital nature.

 

		4.3	Payment
                                         of Rent. All amounts payable by the Tenant to the Landlord pursuant to this Lease
                                         shall be deemed to be Rent and shall be payable and recoverable as Rent in the manner
                                         herein provided and the Landlord shall have all rights against the Tenant for default
                                         in any such payment as in the case of arrears of rent. Except as provided in Section
                                         8.1, Rent shall be paid to the Landlord in lawful money of Canada, without deduction
                                         or set-off, at the address of the Landlord or to such other person or such other address
                                         as the Landlord may from time to time designate in writing. The Tenant’s obligation
                                         to pay Rent shall survive the expiration of earlier termination of this Lease.

 

ARTICLE
5

USE
AND OCCUPATION

 

		5.1	Use
                                         of Leased Premises. The Tenant shall use the Leased premises only for the Permitted
                                         Use and shall not use or permit to be used the Leased Premises or any part thereof for
                                         any other purpose or business or by any persons other than the Tenant

 

		5.2	Compliance
                                         with Laws. The Tenant shall comply with present and future laws, regulations
                                         and orders relating to the occupation or use of the Leased Premises, the condition of
                                         the leasehold improvements, equipment and other property of the Tenant therein, the making
                                         by the Tenant of any repairs, changes or improvements and the conduct of business in
                                         the Leased Premises.

 

		5.3	Prohibited
                                         Uses. The Tenant shall not commit, cause or permit any nuisance or any waste
                                         or injury to or in or about the Leased Premises, or to any of the leasehold improvements,
                                         merchandise or fixtures therein, or conduct any use or manner of use causing annoyance
                                         to any person. Without limiting the generality of the foregoing, the Tenant shall not
                                         use or permit the use of any portion of the Leased Premises for any dangerous, illegal,
                                         noxious, odorous or offensive trade, business or occurrence or other use contrary to
                                         the provisions of this Lease. The Tenant shall keep the Leased Premises free of debris
                                         or anything of a dangerous, noxious, odorous or offensive nature or which could create
                                         an environmental or a fire hazard (through undue load on electrical circuits or otherwise)
                                         or undue vibration, heat or noise.

 

		5.4	Hazardous
                                         Use. The Tenant shall not do, omit to do or permit to be done anything which
                                         will cause or shall have the effect of causing the cost of the Landlord’s insurance
                                         in respect of the Leased Premises to be increased at any time during the Term or any
                                         policy of insurance on or relating to the Leased Premises to be subject to cancellation.
                                         Without waiving the foregoing prohibition, the Landlord may demand and the Tenant shall
                                         pay to the Landlord upon demand, the amount of any increase in the cost of insurance
                                         caused by anything so done or omitted to be done. The Tenant shall forthwith upon the
                                         Landlord’s request comply with the requirements of the Landlord’s insurers,
                                         cease any activity complained of and make good any circumstance which has caused any
                                         increase in insurance premiums or the cancellation of any insurance policy. If any policy
                                         of insurance in respect of the Leased Premises is cancelled or becomes subject to cancellation
                                         by reason of anything so done or omitted to be done, the Landlord may without prior notice
                                         terminate this Lease and re-enter the Leased Premises.

 

		5.5	Signage.
                                         The Tenant shall, with the Landlord’s prior written approval, not to be
                                         unreasonably withheld, be permitted to install and exhibit sign(s) identifying the Tenant
                                         and the Tenant’s business activities on the Leased Premises. Subject to requirements
                                         of existing municipal by-laws, such sign(s) are to be installed and maintained at the
                                         Tenant’s own expense.

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

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		5.6	Rules
                                         and Regulations. The Landlord shall be entitled from time to time to make reasonable
                                         rules and regulations for the operation, maintenance, safety, and use of the Leased Premises
                                         and the Tenant shall comply with such rules and regulations and shall cause its servants,
                                         agents, employees, customers, invitees and licencees to comply with such rules and regulations.

 

ARTICLE
6

RIGHTS
AND OBLIGATIONS OF THE LANDLORD

 

		6.1	Operation
                                         of Leased Premises. The Tenant shall assume full responsibility for the operation
                                         and maintenance of the Leased Premises and for the repair or replacement of all fixtures
                                         or chattels1ocated therein or thereon. The Landlord shall have no responsibility whatsoever,
                                         with respect to maintenance, repairs or replacement, except as provided in Section 6.2
                                         herein, provided that if the Tenant fails to do so, the Landlord may at its sole option
                                         upon fourteen (14) days prior written notice and without any obligation to the
                                         Tenant elect to perform such maintenance, repairs or replacement as the Landlord may
                                         reasonably deem necessary or desirable. In so doing, the Landlord shall not be liable
                                         for any consequential damage, direct or indirect to any person or property, including,
                                         but without restricting the generality of tl1e foregoing, damages for a disruption of
                                         the business of the Tenant and damage to, or loss of, the goods, chattels and equipment
                                         and other property of the Tenant or shall any reduction or disruption of services be
                                         construed as a breach of the Landlord’s covenants or as an eviction of the Tenant,
                                         or release of the Tenant from any obligation under this Lease provided that the Tenant’s
                                         business is not unreasonably interfered with.

 

		6.2	Access
                                         by Landlord. The Tenant shall permit the Landlord to enter the Leased Premises
                                         at any time outside normal business hours in case of an emergency and otherwise during
                                         normal business hours where such will not unreasonably disturb or interfere with the
                                         Tenant’s use of the Leased Premises or operation of its business, to examine, inspect
                                         and show the Leased Premises for purposes of leasing, sale or financing, to provide services
                                         or make repairs, replacements, changes or alterations as provided for in this Lease and
                                         to take such steps as the Landlord may deem necessary for the safety, improvement or
                                         preservation of the Leased Premises. The Landlord shall, whenever possible, consult with
                                         or give reasonable notice to the Tenant prior to entry but no such entry shall constitute
                                         an eviction or a breach of the Landlord’s covenant for quiet enjoyment or entitle
                                         the Tenant to any abatement of Rent. The Tenant shall also permit the Landlord, its employees
                                         and agents, at any time during the six (6) months prior to the expiry or termination
                                         of this Lease to enter the Leased Premises for the purpose of showing it to any such
                                         persons as may be desirous of purchasing or leasing the Leased Premises.

 

ARTICLE
7

TENANT’S
RESPONSIBILITIES

 

		7.1	Tenant’s
                                         Obligations. In connection with the Leased Premises, the Tenant hereby agrees
                                         that it shall be responsible for the following throughout the Term:

 

		(a)	Insurance
                                         - to take out and maintain, in the name of the Landlord its agents and employees,
                                         the Tenant and each mortgagee of the Leased Premises as their interests may appear the
                                         following forms of insurance:

 

		(i)	all
                                         risks property insurance (including flood, sewer back-up and earthquake) with coverage
                                         for the full replacement cost value of the Leased Premises including By-Law endorsement
                                         for demolition or replacement;

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

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		(ii)	insurance
                                         upon property of every description owned by the Tenant or for which the Tenant is legally
                                         liable and installed or kept within the Leased Premises (including leasehold improvements)
                                         in an amount not less than the full replacement costs value;

 

		(iii)	comprehensive
                                         broad form boiler, machinery and equipment insurance for the full replacement cost value
                                         of all boilers, pressure vessels, air-conditioning and other equipment located on the
                                         Leased Premises;

 

		(iv)	comprehensive
                                         public liability and broad form property damage insurance with limits of not less than
                                         Two Million Dollars ($2,000,000) per occurrence with extensions including but
                                         not limited to personal injury, intentional acts, blanket contractual, cross liability
                                         and severability of interest, occurrence property damage, employer’s liability
                                         and non-owned automobile coverage;

 

		(v)	any
                                         other form or forms of insurance as the Landlord or its mortgagees may reasonably require;

 

		(vi)	rental
                                         interruption insurance covering a period of at least twelve (12) months payable
                                         to the Landlord as the named insured.

 

		(vii)	Tenant’s
                                         Liability insurance to name Landlord as additional insurer under Tenants policy

 

All
insurance policies required under this provision shall provide for a waiver of subrogation against the Landlord or those for whom
it is in law responsible whether any damage is caused by the acts, omission, or negligence of the Landlord or those for whom it
is in law responsible. Each such insurance policy shall further contain a prohibition against cancellation or material change
that reduces or restricts the insurance coverage except upon thirty (30) days prior written notice to the Landlord. The
Tenant shall provide the Landlord with certified copies of each such insurance policy on or before the Commencement Date.

 

		(b)	Utilities
                                         - to promptly pay and discharge all charges, rates, assessments and levies for heat,
                                         water, gas, hydro, sewage, and all other utilities supplied to or consumed in the Leased
                                         Premises;

 

		(c)	Taxes
                                         - to promptly pay and discharge all taxes, levies, duties, assessments, and license
                                         fees whatsoever whether municipal, school, provincial, parliamentary or otherwise levied,
                                         imposed or assessed against the Leased Premises or upon the Landlord in respect thereof,
                                         or from time to time levied, imposed or assessed in the future in lieu thereof, including
                                         those levied, imposed or assessed for education, school and local improvements, or other
                                         similar taxes imposed upon the Landlord or the Tenant and including all Value Truces,
                                         business taxes, if any, and realty taxes from time to time payable by the Landlord or
                                         levied against the Landlord on account of its ownership or operation of the Leased Premises;
                                         and including all costs and expenses (including legal fees on a solicitor and client
                                         basis and other professional fees and interest and penalties on deferred payments) incurred
                                         by the Landlord in good faith in contesting, resisting or appealing any such taxes, rates,
                                         duties, levies or assessments but excluding income or profits taxes upon the income of
                                         the Landlord; as well as any form of capital or capital gains truces levied in respect
                                         of the Leased Premises all to be paid by the Tenant on or before the date when the same
                                         or installments for the same are due. The Tenant shall upon the request of the Landlord
                                         promptly deliver to the Landlord for examination all receipts for payment of such taxes,
                                         levies, duties, assessments and license fees. The Tenant shall also reimburse the Landlord
                                         at times and in the manner specified by the Landlord, and in the full amount of any taxes
                                         in the nature of a business transfer tax, Value Taxes, sales tax or any other tax levied,
                                         rated, charged or assessed in respect of the Minimum Rent or Additional Rent payable
                                         under this Lease. The Tenant shall reimburse the Landlord for such taxes at the full
                                         tax rate applicable from time to time.

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

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		(d)	Heating
                                         and Cooling - to pay and discharge as Rent the cost of all heating, cooling, ventilating
                                         and air conditioning required in the Leased Premises arid the cost of all repairs, replacements
                                         and improvements to the heating, ventilating, air conditioning and other service and
                                         utility systems;

 

		(e)	Maintenance
                                         - to maintain the Leased Premises and all improvements therein in good order and
                                         condition, provide all landscaping, gardening and snow removal, keep the Leased Premises
                                         in a clean condition and remove from the Leased Premises at its expense all debris and
                                         garbage;

 

		(f)	Repairs
                                         - to perform all repairs to and make all replacements of fixtures, systems, facilities,
                                         equipment, machinery, leasehold improvements and plate glass in the Leased Premises as
                                         may be necessary; and

 

		(g)	All
                                         Other Expenses - to pay all other expenses of every nature incurred in connection
                                         with the maintenance and operation of the Leased Premises.

 

		7.2	Payment
                                         of Costs. The Tenant shall pay all of the costs and expenses associated with
                                         the Tenant’s obligations directly to the appropriate party as they come due and
                                         shall, at the Landlord’s request, provide the Landlord with copies of receipts
                                         or other proof acceptable to the Landlord that such costs have been paid. If the Tenant
                                         fails to perform any obligation under this Lease or to pay any costs and expenses as
                                         set out herein, the Landlord may at its sole option and discretion, on seven (7)
                                         days written notice to the Tenant, perform such obligation or pay such amounts on behalf
                                         of the Tenant and the Tenant shall forthwith upon receipt of an invoice therefor reimburse
                                         the Landlord for the cost of such action or the amount of such payment.

 

		7.3	Leasehold
                                         Improvements. The Tenant may install in the Leased Premises its usual fixtures
                                         and personal property in a proper manner; provided that no installation or repair shall
                                         interfere with or damage the mechanical or electrical systems or the structure of the
                                         Leased Premises. If the Tenant is not then in default hereunder, the fixtures and personal
                                         property installed in the Leased Premises by the Tenant may be removed by the Tenant
                                         from time to time in the ordinary course of the Tenant’s business or in the course
                                         of reconstruction, renovation or alteration of the Leased Premises by the Tenant, provided
                                         that the Tenant promptly repairs at its own expense any damage to the Leased Premises
                                         resulting from the installation and removal reasonable wear and tear excepted. The Tenant
                                         shall, if required by the Landlord, remove any Leasehold Improvements or fixtures from
                                         the Leased Premises upon the termination of this Lease.

 

The
Tenant will pay for a licensed engineer overseeing the design and installation of the equipment and improvements to ensure proper
electrical installation and proper venting. The engineer will provide the Landlord with reports satisfactory to the Landlord prior
to and on completion of the improvements confirming their proper installation and functionality and that they will not adversely
affect the electrical and HVAC systems in the building. Further, all improvements will require the consent of the Landlord and
be done with proper building permits from the City and any other government authorities. The Tenant will have to provide the Landlord
with confirmation of final occupancy permit and any other governmental permits.

  

	 

        LANDLORD
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Available
electric power for the Tenant is 200 Amp:’-Additional power requirements if required are the sole responsibility and cost
of the Tenant.

 

Upon
the Tenant request, the landlord is to sign Health Canada standard Form F to authorize intended use of premises within a reasonable
time period. Should Health Canada require any modifications or changes, sad modifications or changes shall be sole responsibility
of the Tenant.

 

		7.4	Alterations
                                         by Tenant. The Tenant may from time to time at its own expense make changes,
                                         additions and improvements to the Leased Premises to better adapt the same to its business,
                                         provided that any change, addition or improvement shall be made only after obtaining
                                         written consent of the Landlord, such consent not to be unreasonably withheld and shall
                                         be carried out in a good and workmanlike manner and only by persons selected by the Tenant
                                         and reasonably approved in writing by the Landlord. If any such changes, additions or
                                         improvements require alterations to the exterior walls, roof, or other structural components
                                         of the Leased Premises or modification to the heating, ventilation or air conditioning
                                         systems in the Leased Premises, the Tenant shall be solely responsible for the cost of
                                         such modifications and the Landlord hereby reserves the right to perform any such work
                                         at the expense of the Tenant provided that the cost of such work to the Tenant is reasonable
                                         in the circumstance.

 

		7.5	Liens.
                                         The Tenant shall pay promptly when due all costs for work done or caused to be
                                         done by the Tenant in the Leased Premises which could result in any lien or encumbrance
                                         on the Landlord’s interest in the property, shall keep the title to the property
                                         and every part thereof free and clear of any lien or encumbrance in respect of the work
                                         and shall indemnify and hold harmless the Landlord against any claim, loss, cost, demand
                                         and legal or other expense, whether in respect of any lien or otherwise, arising out
                                         of the supply of materials, services or labour for the work.

 

		7.6	Notify
                                         Landlord. The Tenant shall immediately notify the Landlord of any accidents or
                                         defect in the Leased Premises or any systems thereof, and as well of any matter or condition
                                         which may cause injury or damage to the Leased Premises or any person or property located
                                         therein.

 

ARTICLE
8

DAMAGE
AND DESTRUCTION

 

		8.1	Damage
                                         and Destruction. If during the Term the Leased Premises or any part thereof shall
                                         be damaged by fire, lightning, tempest, structural defects or acts of God or by any additional
                                         perils from time to time defined and covered in the standard broad-coverage fire insurance
                                         policy carried by the Landlord on the Leased Premises, the following provisions shall
                                         apply:

 

		(a)	If
                                         as a result of such damage the Leased Premises are rendered partially unfit for occupancy
                                         by the Tenant, the Rent shall abate in the proportion that the part of the Leased Premises
                                         rendered unfit for occupancy by the Tenant is of the whole of the Leased Premises. If
                                         the Leased Premises are rendered wholly unfit for occupancy by the Tenant, the Rent shall
                                         be suspended until the Leased Premises have been rebuilt and repaired or restored.

 

		(b)	Notwithstanding
                                         subsection (a) above, if in the opinion of the Landlord’s architect or engineer
                                         given within sixty (60) business days of the happening of damage, the Leased Premises
                                         shall be incapable of being rebuilt, repaired, or restored with reasonable diligence
                                         within one hundred eighty (180) days after the occurrence of the damage then either the
                                         Landlord or the Tenant may, at its option, terminate this Leased by notice in writing
                                         to the other given within fifteen (15) days of the giving of the opinion of the Landlord’s
                                         architect or engineer. If notice is given by the Landlord or Tenant under this Section,
                                         then this Lease shall terminate from the date of such damage and the Tenant shall immediately
                                         surrender the Leased Premises and all interest therein to the Landlord and the Rent shall
                                         be apportioned and shall be payable by the Tenant only to the date of the damage and
                                         the Landlord may thereafter re-enter and repossess the Leased Premises.

 

	 

        LANDLORD
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        INITIAL

	 	 

 

    	 

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		(c)	If
                                         the Leased Premises are capable with reasonable diligence of being rebuilt, repaired
                                         or restored within one hundred eighty (180) days of the occurrence of such damage, then
                                         the Landlord shall proceed to rebuild, restore or repair the Leased Premises with reasonable
                                         promptness within one hundred eighty (180) days plus any additional period due to delay
                                         caused by strikes, lock-outs, slow-downs, shortages of material or labour, acts of God,
                                         acts of war, inclement weather or other occurrences which are beyond the reasonable control
                                         of the Landlord, and the Rent shall abate in the manner provided for in subsection (a)
                                         above until the Leased Premises have been rebuilt, repaired or restored; provided that
                                         nothing in this Section shall in any way be deemed to affect the obligation of the Tenant
                                         to repair, maintain, replace or rebuild the Leased premises as otherwise provided by
                                         the terms of this Lease.

 

ARTICLE
9

INDEMNITY

 

		9.1	Indemnity.
                                         The Tenant shall indemnify and save harmless the Landlord and its agents and
                                         employees from any and all liabilities, damages, costs, claims, suits or actions growing
                                         or arising out of:

 

		(a)	any
                                         breach, violation or non-performance of any covenant, condition or agreement in this
                                         Lease set forth and contained on the part of the Tenant to be fulfilled, kept, observed
                                         and performed;

 

		(b)	any
                                         damage to property while the property is in or about the Leased Premises; and

 

		(c)	any
                                         injury to person or persons including death resulting at any time therefrom occurring
                                         in or about the Leased Premises.

 

		9.2	Limitation
                                         of Landlord’s Liability. The Landlord and its agents and employees shall
                                         not be liable for any damage to the Leased Premises or any property located therein caused
                                         by any latent defect or by steam, water, rain or snow which may leak into, issue or flow
                                         from any part of the Leased Premises or from the water, steam, sprinkler or drainage
                                         pipes or plumbing works of the same or from any other place or from any damage caused
                                         by or attributable to the condition or arrangement of any electrical or other wiring
                                         or for any damage caused by anything done or omitted to be done by any person or for
                                         damage caused by interruption or failure of any service or utility or for damage however
                                         caused to merchandise, stock in trade, books, records, files, money, securities, negotiable
                                         instruments, papers or other valuables.

 

		9.3	Survival
                                         of Obligations and Indemnities. All obligations of the Tenant which arise during
                                         the Term pursuant to this Lease and which have not been satisfied and the indemnities
                                         and other obligations of the Tenant contained in Section 9.1 shall survive the expiration
                                         or other termination of this Lease.

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

    	Page 10 

    

 

ARTICLE
10

DEFAULT

 

		10.1	Interest
                                         and Costs. The Tenant shall pay monthly to the Landlord interest at a rate equal
                                         to the lesser of the prime rate established as such by the Landlord’s bank from
                                         time to time plus one per cent per annum and the maximum rate permitted by applicable
                                         law, upon any default in payment of Rent from the due date for payment thereof until
                                         the same is fully paid and satisfied. The Tenant shall indemnify the Landlord against
                                         all costs and charges reasonably incurred in enforcing payment of Rent hereunder and
                                         in obtaining possession of the Leased Premises should the same be necessary.

 

		10.2	Events
                                         of Default. Each of the following events shall constitute an event of default
                                         (an “Event of Default’’):

 

		(a)	all
                                         or any part of the Rent hereby reserved is not paid when due and upon written notice
                                         by the Landlord default continues for five (5) days after notice thereof; or

		(b)	the
                                         Term or any goods, merchandise, stock in trade, chattels or equipment of the Tenant is
                                         seized or is taken or exigible in execution or in attachment or if a writ of execution
                                         is issued against the Tenant or if a creditor takes possession thereof; or

 

		(c)	the
                                         Tenant or any person or corporation bound to perform the obligations of the Tenant hereunder
                                         either as guarantor or indemnifier or as one of the parties constituting the Tenant takes
                                         any steps or suffers any order to be made for its winding-up or other termination of
                                         its corporate existence or becomes insolvent or commits an act of bankruptcy or becomes
                                         bankrupt or takes the benefit of any statute that may be in force for bankrupt or insolvent
                                         debtors or becomes involved in voluntary or involuntary winding-up proceedings or if
                                         a receiver or receiver/manager shall be appointed for the business, property, affairs
                                         or revenues of the Tenant or such person or corporation; or

 

		(d)	the
                                         Tenant makes a bulk sale of its goods or moves or commences, attempts or threatens to
                                         move its goods, chattels and equipment out of the Leased Premises (other than in the
                                         normal course of its business) or ceases to conduct business from the Leased Premises
                                         for in excess of fourteen (14) days; or

 

		(e)	the
                                         Tenant fails to observe, perform and keep each and every of the covenants, agreements
                                         and conditions herein contained to be observed, performed and kept by the Tenant and
                                         persists in the failure after ten (10) days notice by the Landlord requiring the
                                         Tenant to remedy, correct, desist or comply (or if any breach would reasonably require
                                         more than ten (10) days to rectify, unless the Tenant commences rectification
                                         within the ten (10) day notice period and thereafter promptly and effectively
                                         and continuously proceeds with the rectification of the breach).

 

		10.3	Remedies
                                         on Default. Upon the occurrence of one or more Events of Default, the Landlord
                                         may, at its option, and in addition to and without prejudice to all rights and remedies
                                         of the Landlord available to it either by any other provision of this Lease or by statute
                                         or the general law:

 

		(a)	be
                                         entitled to the full amount of the current month’s and the next three (3) months’
                                         installments of Rent which shall immediately become due and payable and the Landlord
                                         may immediately distrain for the same, together with any arrears then unpaid;

 

		(b)	without
                                         notice or any form of legal process, forthwith re-enter upon and take possession of the
                                         Leased Premises or any part thereof in the name of the whole and re-let the Leased Premises
                                         or any part thereof on behalf of the Tenant or otherwise as the Landlord sees fit and
                                         remove and sell the Tenant’s merchandise, stock in trade, goods, chattels and trade
                                         fixtures therefrom, any rule of law or equity to the contrary notwithstanding;

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

    	Page 11 

    

  

		(c)	seize
                                         and sell such goods, chattels and equipment of the Tenant as are in the Leased Premises
                                         and may apply the proceeds thereof to all Rent to which the Landlord is then entitled
                                         under this Lease. Any such sale may be effected by public auction or otherwise, and either
                                         in bulk or by individual item, all as the Landlord in its sole discretion may decide;

 

		(d)	terminate
                                         this Lease by leaving upon the Leased Premises ten (10) days prior written notice
                                         of the termination, and termination shall be without prejudice to the Landlord’s
                                         right to damages; it being agreed that the Tenant shall pay to the Landlord as damages
                                         the loss of income of the Landlord to be derived from the Leased Premises for the unexpired
                                         portion of the Term had it not been terminated, provided that the Landlord shall not
                                         be entitled in any event to receive any damages greater than those damages the Landlord
                                         would be entitled to receive at law; or

 

		(e)	re-enter
                                         into and upon the Leased Premises or any part thereof in the name of the whole and repossess
                                         and enjoy the same as of the Landlord’s former estate, anything herein contained
                                         to the contrary notwithstanding;

 

and
the Tenant shall pay to the Landlord forthwith upon demand all expenses of the Landlord in reentering, terminating, re-letting,
collecting sums due or payable by the Tenant or realizing upon assets seized including tenant inducements, leasing commissions,
legal fees on a solicitor and client basis and all disbursements and the expense of keeping the Leased Premises in good order,
and preparing the same for re-letting.

 

		10.4	Waiver.
                                         If the Landlord shall overlook, excuse, condone or suffer any default, breach
                                         or nonobservance by the Tenant of any obligation hereunder, this shall not operate as
                                         a waiver of the obligation in respect of any continuing or subsequent default, breach
                                         or non-observance and no such waiver shall be implied but shall only be effected if expressed
                                         in writing.

 

		10.5	Waiver
                                         of Exemption and Redemption. Notwithstanding anything contained in any statute
                                         now or hereafter in force limiting or abrogating the right of distress, none of the Tenant’s
                                         goods, merchandise, stock in trade, chattels or trade fixtures on the Leased Premises
                                         at any time during the Term shall be exempt from levy by distress for Rent in arrears,
                                         and upon any claim being made for exemption by the Tenant or on distress being made by
                                         the Landlord, this agreement may be pleaded as an estoppel against the Tenant in any
                                         action brought to test the right to the levying upon any such goods as are named as exempted
                                         in any such statute, the Tenant hereby waiving all and every benefit that could or might
                                         have accrued to the Tenant under and by virtue of any such statute but for this Lease.
                                         The Tenant hereby expressly waives any and all rights of redemption and relief from forfeiture
                                         granted by or under any present or future laws in the event of the Tenant being evicted
                                         or dispossessed for any cause, or in the event of the Landlord obtaining possession of
                                         the Leased Premises, by reason of the violation by the Tenant of any of the terms or
                                         conditions of this Lease or otherwise.

 

ARTICLE
11

ASSIGNMENT
AND TRANSFERS

 

		11.1	No
                                         Assignment By Tenant. The Tenant shall not assign, sublet, pledge or transfer
                                         this Lease or any interest therein or in any way part with possession of all or any part
                                         of the Leased Premises, or permit all or any part of the Leased Premises to be used or
                                         occupied by any other person without the Landlord’s prior written consent, which
                                         consent may not be unreasonably withheld. The Tenant shall be permitted to assign this
                                         lease without prior consent of the Landlord to an associated corporation, a parent or
                                         wholly owned subsidiary of the Tenant or to a corporation which results from the reorganization,
                                         consolidation, amalgamation or merger of the Tenant, provided that any such assignment
                                         or any transfer, or transfers, or other dealing with any of the shares of the Tenant,
                                         which taken alone or together have the effect of changing control of the Tenant, shall
                                         be deemed to be an assignment of this Lease which requires the prior approval of the
                                         Landlord as set out herein.

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

  

    	 

    	Page 12 

    

  

		11.2	Sale,
                                         Conveyance and Assignment by the Landlord. Nothing in this Lease shall restrict
                                         the right of the Landlord to sell, convey, assign, pledge or otherwise deal with the
                                         Leased Premises subject only to the rights of the Tenant under this Lease. A sale, conveyance
                                         or assignment of the Leased Premises by the Landlord shall operate to release the Landlord
                                         from liability from and after the effective date thereof in respect of all of the covenants,
                                         terms and conditions of this Lease, express or implied, except as they may relate to
                                         the period prior to the effective date, and only to the extent that the Landlord’s
                                         successor assumes the Landlord’s obligations under the Lease and the Tenant shall
                                         thereafter look solely to the Landlord’s successor in interest and to this Lease.

 

		11.3	Subordination.
                                         This Lease is and shall be subject and subordinate in all respects to any and
                                         all mortgages (including deeds of trust and mortgage) now or hereafter placed on the
                                         Leased Premises and all advances thereunder, past, present and future and to all renewals,
                                         modifications, consolidations, replacements and extensions thereof. The Tenant agrees
                                         to execute promptly after request therefor an instrument of subordination as may be requested.

 

ARTICLE
12

SURRENDER
AND OVERHOLDING

 

		12.1	Surrender.
                                         Upon the expiration or other termination of the Term, the Tenant shall immediately
                                         quit and surrender possession of the Leased Premises and all leasehold improvements in
                                         substantially the condition in which the Tenant is required to maintain the Leased Premises
                                         excepting only reasonable wear and tear, and upon surrender, all right, title, and interest
                                         of the Tenant in the Leased Premises shall cease. It is understood that the Landlord
                                         has the right to remove and sell or otherwise dispose of any leasehold improvements,
                                         chattels, equipment or any other property of the Tenant left on the Leased Premises by
                                         the Tenant after the termination of this Lease, and to retain the proceeds thereof, and
                                         the Tenant shall pay to the Landlord upon written demand all of the costs incurred by
                                         the Landlord in connection therewith.

 

		12.2	Overholding.
                                         If the Tenant continues to occupy the Leased Premises after the expiration or
                                         other termination of the Term without any further written agreement, the Tenant shall
                                         be a monthly tenant at an Minimum Rent equal to two times the Minimum Rent paid by the
                                         Tenant immediately prior to the expiration or other termination of the Term but subject
                                         to all other provisions in this Lease to the extent that the same are applicable to a
                                         month to month tenancy, and a tenancy from year to year shall not be created by implication
                                         of law. Nothing contained in this Section shall preclude the Landlord from exercising
                                         all of its rights set out in this Lease including, without limitation, the taking of
                                         any action for recovery or possession of the Leased Premises.

 

		12.3	Option
                                         to Extend Term. If the Tenant duly and regularly pays the rent, plus GST/HST/PST,
                                         and performs each and every one of the covenants in the Lease to be performed and observed
                                         by the Tenant, the Tenant will have one option to extend the Term of the Lease for a
                                         further term of five (5) years (the “Extended Term”), such option
                                         to be exercised on not less than two (2) months’ and not more than three
                                         (3) months’ written notice prior to the expiration of the Term failing which
                                         such option will be null and void and incapable of exercise. If the Tenant exercises
                                         the option to extend the Term, the Extended Term will be on the same terms and conditions
                                         as the initial Term of the Lease except for Basic Rent, and Landlord’s work, any
                                         free rent allowance, fixturing period, tenant improvement allowance or other incentive
                                         given to the Tenant during the initial Term, and except for this option to extend.

  

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

    	Page 13 

    

  

The
Basic Rent payable by the Tenant during the Extended Term will be negotiated and agreed upon between the Landlord and the Tenant
based on the prevailing fair market Basic Rent as at the commencement of the Extended Term for similarly improved premises of
similar size, quality, use and location in buildings similar to the Building, but will in any event not be less than the Basic
Rental paid during the last year of the initial Term of the Lease. If the Landlord and the Tenant are unable to agree on the Basic
Rent for the Extended Term within three (3) months prior to the commencement of the Extended Term, the matter will be determined
by a single arbitrator pursuant to the provisions of the Commercial Arbitration Act and in accordance with the foregoing
provisions unless a different method of determining Basic Rent for the Extended Term is set out in the Lease, in which event such
different method will govern and prevail.

 

ARTICLE
13

GENERAL

 

		13.l	Entire
                                         Agreement. There is no promise, representation or undertaking by or binding upon
                                         the Landlord except such as are expressly set forth in this Lease, and this Lease including
                                         the Schedules contains the entire agreement between the parties hereto.

 

		13.2	Registration.
                                         The Tenant agrees not to register this Lease. If the Tenant wishes to register
                                         a notice of this Lease, the Landlord agrees to execute at the expense of the Tenant,
                                         an acknowledgement or short form of lease sufficient for such purpose which shall preserve
                                         the confidentiality of the Rent and other financial terms of this Lease. The Tenant shall
                                         at its own expense, upon expiration or earlier termination of the Term, discharge any
                                         registration made against the Leased Premises providing notice of its interest in the
                                         Lease.

 

		13.3	Notice.
                                         Any notice required or contemplated by any provision of this Lease shall be given
                                         in writing and shall be sufficiently given if mailed by registered mail or delivered
                                         or if sent by telecopy or similar form of immediate transmission and if to the Landlord,
                                         delivered to the address set out on page I and if to the Tenant, personally (or to a
                                         partner or officer of the Tenant if the Tenant is a firm or corporation) or delivered
                                         to the Leased Premises (whether or not the Tenant has departed from, vacated or abandoned
                                         the same). Any notice shall be deemed to have been received five (5) postal delivery
                                         days after the date of mailing or on the day following the date of delivery or sending.
                                         If it is reasonably anticipated that mail service may be disrupted, notice must be delivered
                                         or sent by telecopy or other form of immediate transmission.

 

		13.4	Relationship
                                         of Parties. Nothing contained in this Lease shall create any relationship between
                                         the parties hereto other than that of Landlord and Tenant.

 

		13.5	Governing
                                         Law. This Lease shall be construed and enforced in accordance with, and the rights
                                         of the parties shall be governed by, the laws of the Province of British Columbia.

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

    	Page 14 

    

 

		13.6	Amendment
                                         or Modification. No amendment, modification or supplement to this Lease shall
                                         be valid or binding unless set out in writing and executed by the Landlord and the Tenant.

 

		13.7	Force
                                         Majeure. In the event that either party hereto shall be delayed or hindered in
                                         or prevented from the performance of any act required hereunder by reason of strikes,
                                         lock-outs, labour troubles, inability to procure materials, failure of power, restrictive
                                         governmental laws or regulations, riots, insurrection, war or other reason of a like
                                         nature not the fault of the party delayed in performing work or doing acts required under
                                         the terms of this Lease, then performance of such act shall be excused for the period
                                         of the delay and the period for the performance of any such act shall be extended equivalent
                                         to the period of such delay.

 

		13.8	Severability.
                                         All of the provisions of this Lease are to be construed as covenants and agreements.
                                         If any provision of this Lease is illegal or unenforceable, it shall be considered separate
                                         and severable from the remaining provisions of this Lease, which shall remain in force
                                         and be binding as though the provision had never been included.

 

		13.9	Captions
                                         and Headings. The captions and headings contained in this Lease are for convenience
                                         of reference only and are not intended to limit, enlarge or otherwise affect the interpretation
                                         of the Articles, Sections or parts thereof to which they apply.

 

		13.10	Interpretation.
                                         Wherever necessary or appropriate in this Lease, the plural shall be interpreted
                                         as singular, the masculine gender as feminine or neuter and vice versa and when there
                                         are two or more parties bound by the Tenant’s covenants herein contained their
                                         obligations shall be joint and several.

 

		13.11	Time
                                         of the Essence. Time shall be of the essence hereof.

 

		13.12	Successors
                                         and Assigns. Subject to specific provisions contained in this Lease to the contrary,
                                         this Lease shall ensure to the benefit of and be binding upon the successors and assigns
                                         of the Landlord and the heirs, executors and administrators and the permitted successors
                                         and assigns of the Tenant.

 

		13.13	Consent
                                         Not Unreasonably Withheld. For greater clarity and except as otherwise specifically
                                         provided, whenever consent or approval of Landlord or Tenant is required under the terms
                                         of this Lease, such consent or approval shall not be unreasonably withheld or delayed.
                                         If either party withholds any consent or approval such party shall on written request
                                         deliver to the other a written statement giving the reasons therefor.

 

		13.14	Net
                                         Lease. The Tenant acknowledges and agrees that it is intended that this Lease
                                         is a completely carefree net lease to the Landlord, except as herein set out, that the
                                         Landlord is not responsible during the term for any costs, charges, expenses or outlays
                                         of any nature whatsoever arising from or related to the Leased Premises, or the use and
                                         occupancy thereof, or the business carried on therein, and the Tenant shall pay all charges
                                         impositions, costs and expenses of every nature and kind relating to the Leased Premises
                                         except as expressly herein set out.

 

		13.15	Offer
                                         To lease. Offer to Lease and Addendum dated January 15, 2013 is integral part
                                         of this Commercial Lease Agreement.

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

    	Page 15 

    

 

IN
WITNESS WHEREOF the Landlord and the Tenant have executed this Lease as of the date first set forth

above.

 

SIGNED,
SEALED AND DELIVERED

in
the presence of:

 

		 	
	Witness:	 	Authorized
    Signatory for the Tenant
	 	 	 
	 	 	 
	Witness
    Print name	 	Tenant
    Print name
	 	 	
	 	 	Guarantor
    under the Lease
	 	 	
	 	 	Guarantor
    Print Name
	 	 	 
	 	 	 
	 	 	 
	 	 	
	Witness:	 	Authorized
    Signatory for the Landlord
		 	
	Witness
    Print name	 	Landlord
    Print Name

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIAL

	 	 

 

    	 

    	Page 16 

    

 

SCHEDULE
“A”

PLAN
OF PREMISES

 

	 

        LANDLORD
        INITIAL
	 

        TENANT

        INITIALSUBLEASE

 

THIS
SUBLEASE is dated as of the                        
day of June 2015.

 

BETWEEN:

 

SPARTAN
 CANNABIS CORP. (the “Sublandlord”)

 

 and

 

R.
BLAINE COPELAND (the “Subtenant”)

 

RECITALS:

  

A.         
All capitalized terms used in this Sublease
which are not otherwise defined herein shall have the meanings ascribed thereto in the Lease.

 

B.         
By a lease dated January 24, 2013 (the "Head
Lease") Vladikovic Holdings Ltd. ("Landlord") rented the Leased Premises at 9576, 9586 & 9596 Haldane Road,
Kelowna, BC (the "Premises") to R. Blaine Copeland d/b/a Go Green MM and Blaine Copeland ("Original Tenant"),
which lease was then assigned and modified by Agreement dated November 18, 2014 (the "First Amendment") which lease
was assigned to Go Green B.C. Medicinal Marijuana Ltd. ("Sublandlord").

 

C.         
The Sublandlord has agreed to sublet the
Premises to R. Blaine Copeland ("Subtenant") (and for the purpose of this Sublease the Premises as sublet to
the Subtenant are hereinafter called the "Subleased Premises") for a term commencing on June          
, 2015 (the "Commencement Date") and expiring on the earlier of (a) the cessation of the MMAR licensing program
by Health Canada; or (b) the date 91 days after Subtenant's receipt of written notice from the Sublandlord that the Sublandlord
intends to take possession of the Subleased Premises, which notice may be provided by Sublandlord to Subtenant at any time and
shall unconditionally terminate the Sublease on the 91st day after such notice is given (the "Sublease Term"), with
no right of renewal or extension, and subject to the other terms and conditions as contained in this Sublease.

 

NOW
THEREFORE THIS SUBLEASE WITNESSETH that in consideration of the sum of TEN DOLLARS ($10.00) now paid by each of the parties to
the other, the receipt and sufficiency of which is hereby respectively acknowledged, the parties hereto agree as follows:

 

1.
         
GRANT. The Sublandlord hereby subleases to the Subtenant the Subleased Premises for and during the Sublease Term in accordance
with and subject to the terms, covenants and conditions contained in this Sublease and subject to the observance and performance
by the Subtenant of all of the terms, covenants and conditions contained in the Lease to be observed and performed by the Sublandlord
therein as tenant, save and except the payment of Rent as provided herein.

 

2.
         
ACKNOWLEDGEMENTS AND COVENANTS OF SUBTENANT. The Subtenant hereby covenants and agrees to
and with the Sublandlord that the Subtenant shall throughout the Sublease Term:

 

	(a)	pay
    from and after the Commencement Date to the Sublandlord, or to the Landlord as may be directed by the Sublandlord, by way
    of post-dated cheques delivered on or before the Commencement
    Date at such address designated in writing by the Sublandlord without any prior demand therefore and without any deduction,
    abatement, set-off or compensation whatsoever, in equal monthly instalments:

 

    	

    	 	 -2-	 

    

 

	 	(i)	an
    annual base rent (the “Base Rent”) in an amount equal to the entirety of the rent payable under the HeadLease
    to the Landlord, including any escalations or increases of any type.
	 	 	 
	 	(ii)	as
    Additional Rent, all other amounts,
    including but not limited
    to occupancy costs, as provided in the Lease and this Sublease (the “Additional Rent”). The Sublandlord may, at
    its option, estimate items of Additional Rent payable under this paragraph 2.(a)(ii) and advise the Subtenant in writing thereof.
    The Subtenant shall pay to the Sublandlord such estimated amount in equal consecutive monthly instalments in advance for each
    year or a portion thereof. If the Sublandlord elects to have the Subtenant pay such costs based on estimates as aforesaid,
    then within a reasonable period after the expiry of each year, the Sublandlord shall deliver to the Subtenant a statement
    issued by the Sublandlord of such amounts, and the Subtenant’s share thereof for such year. For the purpose of this
    section, any Additional Rent statement received by the Sublandlord from the Landlord shall be deemed to satisfy this provision.
    If the Subtenant has paid less than what the statement specifies, the Subtenant shall pay the deficiency within fifteen (15)
    days after delivery of the Sublandlord’s statement. If the Subtenant has paid more than what the statement specifies,
    the Sublandlord shall refund the excess (unless the Subtenant is then in monetary default under any term or condition of this
    Sublease) without interest.
	 	 	 
	 	(iii)	any
    and all expenses, taxes or other charges that may be assessed or incurred from any source in connection with the maintenance,
    operation, taxes, utilities and other charges of any affecting the Subleased Premises.

 

	 (b)	observe
    and perform all the covenants, agreements and restrictions on the part of the Sublandlord as tenant in the Lease and not to
    do or neglect to do any act or thing which would bring about any breach of any of the provisions of the Lease, and without
    in any way limiting the generality of the foregoing, to permit the Landlord to exercise all its rights under the Lease, including
    its rights to enter the Subleased Premises for the purpose of inspection, exhibiting, alteration and/or repair, and to comply
    with all directions, rules and regulations made by the Landlord pursuant to the Lease, and to comply with all the requirements
    of the Lease regarding the repair, maintenance, operation and conduct of business in and about the Subleased Premises;
	 	 
	(c)	not
    to do any action which would jeopardize any municipal or other governmental approvals to operate the Premises for the purpose
    of growing marijuana;
	 	 
	(d)	indemnify
    and save harmless the Sublandlord from and against any and all claims, demands, actions, losses, costs, expenses or damages
    (including legal fees on a substantial indemnity basis) suffered or incurred by the Sublandlord arising out of or in connection
    with: (i) the Sublease or the Subtenant’s use of the Subleased Premises; (ii) any breach, violation or non-performance
    by the Subtenant of any covenant, term or provision hereof; or (iii) any accident or other occurrence in, upon or at the Subleased
    Premises contributed to in whole or in part by any fault, default, negligence, act or omission on the part of the Subtenant
    or any person or party permitted to be thereon by the Subtenant or those in law for whom the Subtenant is responsible. The
    foregoing obligations shall survive the expiration or sooner termination of this Sublease;

 

    	

    	 	 -3-	 

    

 

	(d)	obtain
    and maintain throughout the Sublease Term the insurance required to be maintained pursuant to the Lease and forthwith deliver
    to the Sublandlord certificates of insurance for each insurance policy. Further, the Subtenant’s insurance policies
    will set out each of the Landlord and the Sublandlord as additional named insureds as their respective interests appear, and
    the Subtenant’s policies shall be the primary insurance policies and shall not call into contribution any insurance
    maintained by either the Sublandlord or Landlord. If either the Landlord or the Sublandlord exercises its right to terminate
    the Lease in the event of damage or destruction pursuant to the Lease, then; (A) this Sublease will terminate concurrent with
    the termination of the Lease, and thereupon Rent will be apportioned and paid to the date of termination, and (B) if the Subleased
    Premises have also been damaged or destroyed, the Subtenant will pay the Sublandlord all of its insurance proceeds relating
    to the leasehold improvements. In addition to any requirements of the Lease, the insurance policies shall cover any casualty
    that may occur to the growing pods and the machinery and equipment located at the Premises.

  

			

	(e)	(i)	not
    undertake any of the following, and for the purpose of this Sublease such action is individually and collectively called a
    “Transfer”:

  

	 	(A)	assign
    this Sublease;
	 	 	 
	 	(B)	sub-sublet,
    franchise, license, grant concessions in, or otherwise part with or share possession of all or any portion of the Subleased
    Premises;
	 	 	 
	 	(C)	transfer,
    or permit any licensee or concessionaire to conduct any business in or about the Subleased Premises; or;

  

	(f)	to
    use the whole of the Subleased Premises solely as a facility for the production of Marijuana under the MMAR program;
	 	 
	(g)	prior
    to any alteration or repair being undertaken in the Subleased Premises, the Subtenant shall obtain the prior written approval
    of each of the Sublandlord and the Landlord, which approval will not be unreasonably withheld and shall at its own expense
    and without compensation from the Sublandlord, complete such alteration or repair in compliance with the Lease;
	 	 
	(h)	upon
    the expiration or sooner termination of this Sublease, to vacate and reinstate the Subleased Premises and surrender the same
    to the Sublandlord in accordance with the provisions of the Lease; provided that upon the expiration of the Sublease Term
    and if the Subtenant is not in default hereunder, and upon prior written approval of the Sublandlord and Landlord, it may
    remove its trade fixtures, except to the extent that ownership has been transferred to the landlord under the Share Purchase
    Agreement of April 21, 2015. However, in the event of the termination of this Sublease prior to the expiration of the Sublease
    Term, whether for breach, operation of condition or otherwise (except breach by the Sublandlord), such of the Subtenant’s
    trade fixtures shall, at the option of the Sublandlord be left upon the Subleased Premises and shall become or remain the
    property of the Sublandlord without compensation to the Subtenant; and
	 	 
	(i)	permit
    the Sublandlord to enter the Leased Premises at any time outside normal business hours in case of an emergency and otherwise
    during normal business hours where such will not unreasonably disturb or interfere with the subtenant’s use of the Leased
    Premises or operation of its business, to examine, inspect and show the Leased Premises for purposes of leasing, sale or financing,
    to provide services or make repairs, replacements, changes or alterations as provided for in this sublease and to take such
    steps as the sublandlord may deem necessary for the safety, improvement or preservation of the Leased Premises, The Sublandlord
    shall, whenever possible, consult with or give reasonable notice to the Subtenant prior to entry but no such entry shall constitute
    an eviction or a breach of the Sublandlord’s covenant for quiet enjoyment or entitle the Subtenant to any abatement
    of Rent. The Subtenant shall also permit the Landlord, its employees and agents, at any time during the six (6) months
    prior to the expiry or termination of this Lease to enter the Leased Premises for the purpose of showing it to any such persons
    as may be desirous of purchasing or leasing the Leased Premises.

  

    	

    	 	 -4-	 

    

 

The
Sublease is intended to be a completely carefree net sublease in favour of the Sublandlord and, except as otherwise expressly
provided by the terms of this Sublease, the Sublandlord is not responsible during the Sublease Term for any loss, charge, expense
or outlay of any kind whatsoever arising from or relating to the Subleased Premises or the Subtenant’s business. The Subtenant
is accepting the Subleased Premises on an “as is, where is” basis.

 

	3.	SUBTENANT’S
    WORK

 

	(a)	The
    Subleased Premises shall be left in a clean and broom swept condition, reasonable wear and tear excepted. Notwithstanding,
    all Machinery and Equipment located at the Premises that were transferred to the Sublandlord pursuant to a Share Purchase
    Agreement dated April 21, 2015, shall left at the Premises. Subtenant is permitted to utilize all fixtures, machinery and
    equipment at the Premises during the term of the Sublease and shall ensure that they are all in good working order at the
    termination of the Sublease.
	 	 
	(b)	Any
    work (the “Subtenant’s Work”) required by the Subtenant to ready the Subleased Premises for its business
    shall be completed in compliance with the provisions of the Lease and shall require the Landlord’s and Sublandlord’s
    prior written consent. The Subtenant will not be permitted to enter the Subleased Premises for the purpose of fixturing until:

  

	 	(i)	the
    Subtenant has provided the Sublandlord and Landlord all certificates of insurance required by this Sublease; and
	 	 	 
	 	(ii)	the
    Landlord and Sublandlord have approved the Subtenant’s Work.

  

	(c)	The
    Subtenant shall complete the Subtenant’s Work in a good and workmanlike fashion, in accordance with applicable laws
    and regulations and the approved plans; and not permit nor suffer any liens to remain registered against title to the Subleased
    Premises. The Subtenant shall be responsible at its cost for the design and construction of the Subtenant’s Work.
	 	 
	(d)	The
    Subtenant hereby acknowledges and agrees that during such fixturing period the Sublandlord shall be entitled to access the
    Subleased Premises for the purpose of inspecting and supervising the Subtenant’s Work, without this constituting a re-entry
    or a breach of any covenant for quiet enjoyment contained in this Sublease or implied by law.
	 	 
	(e)	All
    Subtenant’s Work shall be undertaken; (i) as expeditiously as possible, in a good and workmanlike manner and with first-class
    new materials, (ii) in compliance with such reasonable rules and regulations as the Sublandlord or Landlord or their respective
    agents or contractors may make; (iii) in a manner as will not interfere unreasonably with the business of  the Sublandlord;
    (iv) in accordance with the applicable requirements of all regulatory authorities having jurisdiction with respect thereto;
    and (v) so as not to interfere with the ability of the Sublandlord’s producer’s license application under the
    MMPR Program.

  

    	 	 	 

    	 	 -5-	 

    

 

	4. 
         
APPORTIONMENT OF RENT. Rent shall be considered as accruing from day to day hereunder. If it is necessary to calculate Rent for a period of less than one year or less than one calendar month, an appropriate apportionment and adjustment on a pro rata daily basis shall be made. Where the calculation of Additional Rent cannot be made until after the expiration or earlier termination of this Sublease, the obligation of the Subtenant to pay such Additional Rent shall survive the expiration or earlier termination hereof, and such amounts shall be paid by the Subtenant to the Sublandlord forthwith upon demand. If the Sublease Term commences on any day other than the first day of the month or expires on any day other than the last day of the month, Rent for such fraction of a month shall be adjusted, as aforesaid, and paid by the Subtenant on the Commencement Date.
	 	 
	5. 
         
SUBLANDLORD’S COVENANTS. The Sublandlord covenants and agrees with the Subtenant as follows:

  

	(a)	for
    quiet enjoyment of the Subleased Premises throughout the Sublease Term, subject to the provisions of this Sublease and the
    Lease and provided the Subtenant pays Rent when due, fully performs all its obligations under this Sublease and there has
    been no default by the Subtenant under this Sublease or the Lease,
	 	 
	(b)	to
    pay all amounts payable pursuant to the Lease as required by the Lease,
	 	 
	(c)	To
    enforce against the Head Landlord for the benefit of the Subtenant the obligations of the Head Landlord under the Head Lease
    which materially affect the Sublet Premises;
	 	 
	(d)	To
    perform all of the obligations of the Sublandlord under this Sublease; and
	 	 
	(e)	To
    perform all of the obligations of the Sublandlord under the Head Lease which materially affect the Sublet Premises, including
    without limitation the payment of Rent pursuant to the Head Lease.

  

6.
          RECEIPT AND REVIEW OF LEASE. The Subtenant acknowledges to and with
the Landlord and the Sublandlord that it has received the Head Lease and is familiar with and agrees to be bound by the terms,
covenants and conditions contained therein, subject to the provisions of this Sublease.

   

7.
          SUBTENANT’S DEFAULTS. If and whenever:

  

	(a)	the
    Subtenant fails to pay Rent on the day or dates appointed for payment;
	 	 
	(b)	the
    Subtenant fails to observe or perform any other of the terms, covenants or conditions of this Sublease to be observed and
    performed by the Subtenant, provided the Sublandlord first gives the Subtenant ten (10) days’ written notice of the
    Subtenant’s failure (or such shorter period of time as is otherwise provided in this Sublease), and the Subtenant within
    the 10 day (or shorter) period fails to commence diligently and thereafter to proceed diligently to cure its failure;
	 	 
	(c)	the
    Subtenant becomes bankrupt or insolvent or takes the benefit of any act now or hereafter in force for bankrupt or insolvent
    debtors or files any proposal or makes any assignment for the benefit of creditors or any arrangement or compromise; a receiver
    or a receiver-manager is appointed for all or a portion of the Subtenant’s property; any steps are taken or any action
    or proceedings are instituted by the Subtenant or by any other party to dissolve, wind-up or liquidate the Subtenant or the
    assets or business of the Subtenant and an action or proceeding to set aside such liquidation, dissolution or winding up has
    not been commenced within ten (10) days thereafter; the Subtenant makes a bulk sale of its assets on the Subleased Premises
    other than as permitted by this Sublease and in compliance with the appropriate legislation for the Province of British Columbia;
    the Subtenant effects or permits a Transfer without the Sublandlord’s and Landlord’s consent where required; or
    this Sublease or any of the Subtenant’s assets in the Subleased Premises are taken under any writ of execution and such
    writ has not been set aside after ten (10) days written notice from the Sublandlord;

  

    	 	 	 

    	 	 -6-	 

    

 

then
the Sublandlord, in addition to any other rights or remedies available to it under the Lease, this Sublease and at law, has the
immediate right of re-entry upon the Subleased Premises and it may:

 

	 	(i)	repossess
    the Subleased Premises and enjoy them as of its former estate and may expel all persons and remove all property from the Subleased
    Premises and such property may be removed and sold or disposed of by the Sublandlord as it deems advisable or may be stored
    in a public warehouse or elsewhere at the cost and for the account of the Subtenant, all without service of notice or resort
    to legal process and without the Sublandlord being considered guilty of trespass or becoming liable for any loss or damage
    which may be occasioned; or
	 	 	 
	 	(ii)	re-sublet
    the Subleased Premises or any part or parts thereof for the account of the Subtenant or otherwise. Notwithstanding any such
    re-entry or re-subletting, it is understood and agreed that all Rent and/or any other sums due and owing, continue to be payable
    in accordance with the terms of this Sublease and all of the other terms, covenants and conditions contained in this Sublease
    are to be observed and performed in accordance with the terms of this Sublease.

  

	8.
         
SUBLANDLORD’S EXERCISE OF RIGHTS. If the Subtenant is in default in the payment of the
Rent and/or any other sums due and owing, or in the observance or performance of any of the terms, covenants and conditions to
be observed and performed pursuant to this Sublease beyond the applicable cure periods provided for herein, the Sublandlord may,
at its discretion perform or cause to be performed any of such covenants or obligations, or any part thereof, and for such purpose
may do such things upon or in respect of the Subleased Premises or any part thereof as the Sublandlord may consider requisite
or necessary. All expenses incurred and expenditures made by or on behalf of the Sublandlord under this paragraph 8, together
with an administrative fee equal to fifteen (15%) percent thereon, shall be forthwith paid by the Subtenant to the Sublandlord
as Additional Rent within thirty (30) days of receipt of the Sublandlord’s invoice therefor, and such substantiating documentation
as reasonably requested by the Subtenant. Sublandlord may additionally declare a default under the SPA.
	 	 
	9.         
APPLICATION
OF THE LEASE. Notwithstanding anything contained herein, the Subtenant acknowledges and agrees in favour of the Sublandlord
that:

 

	(a)	the
    Subleased Premises are subject to the Lease and the Subtenant herein acquires no rights or interest in the Subleased Premises
    beyond those rights or interest which the Sublandlord has acquired pursuant to the Lease;
	 	 
	(b)	to
    the extent stipulated in the Lease and without limiting the generality of the foregoing, all services,
    utilities, maintenance, repairs
    and replacements as required under the Lease (and not required to be performed by the Landlord under the Lease or the Sublandlord
    under this Sublease), and any insurance coverage required
    herein in respect of the Subleased Premises, and any other obligations of the Sublandlord deriving from the provisions of
    the Lease will in fact be
    provided by the Subtenant to the extent same relates to the Subleased Premises, and the Sublandlord shall have no obligation
    during the Sublease Term to provide any such services, utilities, maintenance, repairs or replacements (structural or otherwise);
  

 

    	

    	 	 -7-	 

    

 

	(c)	wherever,
    in the Lease a covenant is
    made by the Landlord in favour of the tenant thereunder (being the Sublandlord), such covenant shall not, except as otherwise
    specifically and only to the extent provided herein, be a covenant made by the Landlord and/or the Sublandlord in favour of
    the Subtenant;
	 	 
	(d)	save
    for the specific terms and conditions of this Sublease, all of the terms of the Lease are incorporated, mutatis mutandis,
    into and apply to this Sublease, provided however that if any term of this Sublease is inconsistent with any term of the
    Lease, as between the Sublandlord and the Subtenant the term of this Sublease shall prevail.
	 	 
	(e)	except
    as otherwise provided herein, each reference to the “Landlord” in the Lease shall be deemed to include both the
    Landlord and the Sublandlord, and each reference to the “Tenant” in the Lease shall be deemed to mean the Subtenant;
	 	 
	(f)	whenever
    a period of time is specified in the Lease for notice, an act to be done or a default to be cured by the Sublandlord herein,
    notwithstanding any period of time set out in this Sublease, the Subtenant shall give such notice, do such act or cure such
    default within such time as to permit the Sublandlord to comply with the time limit set out in the Lease; and
	 	 
	(g)	this
    Sublease shall terminate:

  

	 	(i)	in
    the event of breach by the Subtenant, if the Sublandlord shall avail itself of its rights of re-entry and termination herein
    and in the event of such breach by the Subtenant the right of the Sublandlord to be indemnified as provided herein,
    and such indemnity shall
    survive such termination; or
	 	 	 
	 	(ii)	if
    the Landlord shall terminate the Lease pursuant to any condition of termination provided for in the Lease or at law or by
    re-entry and termination for a breach of the Lease, in any such event the Subtenant shall have no claim, recourse or damages
    against the Sublandlord (save only if the Lease is terminated for breach caused by the Sublandlord and not by the Subtenant),
    and no claim, recourse or damages against the Landlord,

  

and
in the event of such termination, the Subtenant shall vacate and deliver up the Subleased Premises to the Sublandlord in compliance
with all the provisions thereof and (without prejudicing the Sublandlord’s claim for damages or expenses in the event of
default by the Subtenant) pay all Rent and other monies due to the date of such termination.

 

	10.	NOTICE.
    Any and all notices or demands by and from any of the parties hereto to the other shall be in writing and may be served
    either personally or by registered mail. Any such notice:

 

    	

    	 	 -8-	 

    

 

	(a)	in
    the case of the Subtenant, shall be served on the Subtenant at the Subleased Premises; and
	 	 
	(b)	in
    the case of the Sublandlord, to the attention of the President.

 

Any
party may change the address set out above by appropriate written notice to the other parties. Any written notice shall be deemed
to have been received on the date of its delivery or,
if mailed, seventy-two (72) hours
after the mailing thereof. Notice may not be sent in any electronic
format, including but not limited to facsimile transmission and electronic mail.

 

11.
          ENTIRE AGREEMENT. This Sublease contains the entire agreement between
the parties, and it is hereby declared that there is no condition precedent, representation, covenant or warranty of any nature
whatsoever, expressed or implied, collateral to this Sublease or otherwise, save and except as expressly contained herein.

 
 

12.
          BINDING. This Sublease and everything herein contained shall extend
to, bind
and enure to the benefit of the parties hereto and their respective successors and permitted assigns, subject to the prior written
consent of the Sublandlord and the Landlord being obtained, as hereinbefore required to any transfer. All rights and powers reserved
to the Sublandlord may be exercised by either the Sublandlord or its agents or representatives

 
 

13.
          FORCE MAJEURE. If the Sublandlord or the Subtenant is in good faith,
delayed or prevented from doing anything required by this Sublease,
because of a strike, labour trouble,
inability to get materials or services, power failure, restrictive governmental laws or regulations, riots, insurrection, sabotage,
rebellion, war, act of God, or any other similar reason, that is not the fault of the party delayed, the doing of the thing is
excused for the period of the delay and the party delayed will do what was delayed or prevented within the appropriate period
after the delay. The preceding sentence does not excuse the Subtenant from payment of Rent or the Sublandlord from the payment
of any amount it is required to pay, in the amounts and at the times specified in this Sublease.

 
 

14.
          FURTHER ASSURANCES. Each of the parties hereto agrees to do, make and
execute all such further documents, agreements, assurances, acts, matters and things and take such further action as may be reasonably
required by any other party hereto in order to more effectively carry out the true intent of this Sublease.

 
 

15.
          SEVERABILITY. If any covenant, obligation, agreement, term or condition
of this Sublease or the application thereof to any person or circumstance shall,
to the extent, be invalid or
unenforceable, the remainder of this Sublease or the application of the covenant,
obligation, agreement, term or
condition to persons or circumstances other than those to which it is held invalid or unenforceable, shall not be affected thereby
and each covenant, obligation, agreement, term and condition of this Sublease shall be separately valid and enforceable to the
fullest extent permitted by law.

 
 

16.
           HEADINGS. The paragraph headings of this Sublease have been inserted
for convenience of reference only and do not form part of this Sublease. They shall not be referred to in the interpretation of
this Sublease.

 
 

17.
          CHANGES IN CONTEXT. This Sublease shall be read with all changes of
gender and number required by the context.

 
 

18.
          WHOLE AGREEMENT. This Sublease contains the whole agreement between
the parties with respect to the subject matter of this Sublease. There is no promise, inducement, representation, warranty, collateral
agreement or condition affecting the Development, the Subleased Premises, the business to be conducted by the Subtenant, or this
Sublease, or supported by this Sublease other than expressed in this Sublease. All representations and inducements made by the
Sublandlord or its representatives which are relied upon by the Subtenant as contained herein and the Subtenant disclaims reliance
or any other representations or inducements.

 

    	

    	 	 -9-	 

    

  

19.
          APPLICABLE LAW. This Sublease shall be construed in accordance with
the laws of the Province of British Columbia.

 
 

20.
          LANDLORD’S CONSENT. This Sublease shall be conditional upon the
review and approval of the Landlord of both parties’ acceptance of this Sublease failing which this Sublease shall be null
and void and of no further effect.

 

21.
           Deliberately Deleted.

 

22.
          DISTRESS

  

	(a)	The
    Subtenant hereby acknowledges and agrees that notwithstanding any statute or rule of law to the contrary, the Sublandlord
    may exercise its right of distraint upon the Subtenant’s goods, chattels and/or trade fixtures, and that in exercising
    this right the Sublandlord may at any time of the day or night and on any day of the week enter the Subleased Premises, and
    if necessary, forcibly enter the Subleased Premises.
	 	 
	(b)	The
    Subtenant hereby acknowledges that the Government of Canada and the Province of British Columbia have priority to any amount
    obtained by the Sublandlord through its exercise of its right of distraint. Therefore, notwithstanding any privacy provision
    in any statute to the contrary including without limitation the Personal Information Protection Act (British Columbia),
    the Subtenant hereby specifically authorizes the appropriate governmental authority to release to the Sublandlord or to the
    Sublandlord’s solicitor upon the Sublandlord’s (or the Sublandlord’s solicitors’ written request,
    a statement indicating the amount of any remittance then due by the Subtenant to that authority, including but not limited
    to amounts payable on account of the Subtenant’s income tax, goods and services tax remittances [Part IX of the Excise
    Tax Act], source deduction remittances for employees and retail sales tax remittances. The Subtenant agrees that this authorization
    has been freely given by the Subtenant without threat or under duress and that this authorization shall be confirmed by the
    presentation to the applicable government authority of a copy of this paragraph 22.(b) along with the Sublandlord’s
    or the Sublandlord’s solicitor’s written statement that this is an exact duplicate of paragraph 22.(b) of the
    Sublease then in effect with the Subtenant. The Subtenant agrees that the Sublandlord may include in its distress warrant,
    an amount equal to that required to satisfy all governmental remittances of the Subtenant then due.

  

	23.
              Deliberately Deleted.	
	 	 
	[remainder
    of page intentionally blank]	 

 

    	

    	 	-10-	 

    

 

24.
          PARAMOUNTCY. The parties agree that if there is a conflict or inconsistency
between the provisions of this agreement and the provisions of any other agreement issued or entered into pursuant to the sublease,
the provisions of this agreement will supplement those of the Share Purchase Agreement of April 21, 2015 between the parties.

 
 

IN
WITNESS WHEREOF the parties hereto have executed this Sublease.

 

SPARTAN
CANNABIS CORP.

  

	Per:	 	 	 
	 	 	 	 
	Per:	 	 	 
	 	 	 
	 	 	 
	Witness	 	R.
    Blaine Copeland

 

 Pursuant
to the Lease, we, in our capacity as Landlord, hereby
acknowledge, accept and consent to this Sublease and waive any lack of form, notice or irregularity whatsoever.

 

	•LTD.	 	 
	 	 	 
	Per:	 	 
	 	 	 
	Per:

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