Document:

EX-4.3

 Exhibit 4.3 

EXECUTION VERSION 

CREDIT AGREEMENT 

BETWEEN 
 SUNDIAL
GROWERS INC. 
 as Borrower 

AND 
 BANK OF MONTREAL

 as Lender 
 MADE
AS OF 
 FEBRUARY 22, 2019 

DAVIES WARD PHILLIPS & VINEBERG LLP 

 TABLE OF CONTENTS 

 

							
	 	  	Page	 
	 Article 1 - INTERPRETATION
	  	 	1	 
	 1.01
	  	Definitions	  	 	1	 
	 1.02
	  	Headings	  	 	22	 
	 1.03
	  	Permitted Encumbrances	  	 	22	 
	 1.04
	  	Currency	  	 	22	 
	 1.05
	  	Paramountcy	  	 	22	 
	 1.06
	  	Non-Business Days	  	 	22	 
	 1.07
	  	Interest Payments; Calculations and Other Payments	  	 	23	 
	 1.08
	  	Determinations By the Borrower	  	 	23	 
	 1.09
	  	Terms Generally	  	 	24	 
	 1.10
	  	Schedules	  	 	24	 
	 Article 2 - THE CREDIT FACILITIES
	  	 	25	 
	 2.01
	  	Credit Facility	  	 	25	 
	 2.02
	  	Purpose of Credit Facility	  	 	25	 
	 2.03
	  	Nature of the Credit Facility	  	 	25	 
	 2.04
	  	Irrevocability	  	 	25	 
	 Article 3 - DISBURSEMENT CONDITIONS
	  	 	25	 
	 3.01
	  	Conditions Precedent to the Initial Advance	  	 	25	 
	 3.02
	  	Waiver	  	 	28	 
	 Article 4 - EVIDENCE OF DRAWDOWNS
	  	 	28	 
	 4.01
	  	Account of Record	  	 	28	 
	 Article 5 - PAYMENTS OF INTEREST
	  	 	28	 
	 5.01
	  	Interest on Advances	  	 	28	 
	 5.02
	  	No Set-Off, Deduction etc.	  	 	28	 
	 5.03
	  	Lender’s Fees	  	 	29	 
	 5.04
	  	Overdue Principal and Interest	  	 	29	 
	 5.05
	  	Interest on Other Amounts	  	 	29	 
	 Article 6 - REPAYMENT
	  	 	29	 
	 6.01
	  	Mandatory Repayment of Principal	  	 	29	 
	 6.02
	  	Voluntary Repayments and Reductions	  	 	29	 
	 6.03
	  	Mandatory Prepayments from Issuances of Equity Interests or Debt	  	 	30	 
	 Article 7 - PLACE AND APPLICATION OF PAYMENTS
	  	 	30	 
	 7.01
	  	Place of Payment of Principal, Interest and Fees	  	 	30	 
	 Article 8 - REPRESENTATIONS AND WARRANTIES
	  	 	31	 
	 8.01
	  	Representations and Warranties	  	 	31	 
	 8.02
	  	Survival and Repetition of Representations and Warranties	  	 	38	 
	 Article 9 - COVENANTS
	  	 	38	 
	 9.01
	  	Positive Covenants	  	 	38	 
	 9.02
	  	Financial Covenant	  	 	43	 
	 9.03
	  	Reporting Requirements	  	 	43	 
	 9.04
	  	Negative Covenants	  	 	45	 
	 Article 10 - SECURITY
	  	 	48	 
	 10.01
	  	Form of Security	  	 	48	 

  
 -ii- 

							
	 10.02
	  	Additional Guarantors	  	 	50	 
	 10.03
	  	After Acquired Property and Further Assurances	  	 	50	 
	 10.04
	  	Application of Proceeds of Security	  	 	50	 
	 10.05
	  	Security Charging Real Property	  	 	50	 
	 Article 11 - DEFAULT
	  	 	50	 
	 11.01
	  	Events of Default	  	 	50	 
	 11.02
	  	Acceleration and Termination of Rights	  	 	54	 
	 11.03
	  	Remedies Cumulative and Waivers	  	 	54	 
	 11.04
	  	Saving	  	 	55	 
	 11.05
	  	Perform Obligations	  	 	55	 
	 11.06
	  	Third Parties	  	 	55	 
	 11.07
	  	Set-Off or Compensation	  	 	55	 
	 11.08
	  	Application of Payments	  	 	56	 
	 Article 12 - COSTS, EXPENSES AND INDEMNIFICATION
	  	 	56	 
	 12.01
	  	Indemnification by the Borrower	  	 	56	 
	 12.02
	  	Waiver of Consequential Damages	  	 	58	 
	 12.03
	  	Payments	  	 	58	 
	 Article 13 - TAXES AND CHANGE OF CIRCUMSTANCES
	  	 	58	 
	 13.01
	  	Increased Costs	  	 	58	 
	 13.02
	  	Taxes	  	 	59	 
	 13.03
	  	Mitigation Obligations	  	 	61	 
	 13.04
	  	Illegality	  	 	61	 
	 Article 14 - SUCCESSORS AND ASSIGNS AND ADDITIONAL LENDERS
	  	 	62	 
	 14.01
	  	Successors and Assigns Generally	  	 	62	 
	 14.02
	  	Assignment by Lender	  	 	62	 
	 14.03
	  	Participations	  	 	63	 
	 14.04
	  	Certain Pledges	  	 	64	 
	 Article 15 - GENERAL
	  	 	64	 
	 15.01
	  	Exchange and Confidentiality of Information	  	 	64	 
	 15.02
	  	Addresses, Etc. for Notices	  	 	64	 
	 15.03
	  	Governing Law and Submission to Jurisdiction	  	 	65	 
	 15.04
	  	Benefit of this Agreement	  	 	66	 
	 15.05
	  	Survival	  	 	66	 
	 15.06
	  	Severability	  	 	66	 
	 15.07
	  	Whole Agreement	  	 	66	 
	 15.08
	  	Further Assurances	  	 	66	 
	 15.09
	  	Waiver of Jury	  	 	66	 
	 15.10
	  	Counterparts; Integration; Effectiveness	  	 	67	 
	 15.11
	  	Electronic Execution of Assignments	  	 	67	 
	 15.12
	  	Treatment of Certain Information; Confidentiality	  	 	67	 
	 15.13
	  	Time of the Essence	  	 	68	 
	 15.14
	  	Delivery by Facsimile Transmission	  	 	68	 
	 15.15
	  	Termination of Agreement and Loan Documents	  	 	69	 
	 15.16
	  	Anti-Money Laundering Legislation	  	 	69	 

  
 -iii- 

 TABLE OF SCHEDULES 

 

					
	Schedule A	  	–	  	Notice of Request for Advance
	Schedule B	  	–	  	Repayment Notice
	Schedule C	  	–	  	Compliance Certificate
	Schedule D	  	–	  	Obligors
	Schedule E	  	–	  	Solvency Certificate

					
	Schedule 8.01(10)	  	–	  	Litigation
	Schedule 8.01(12)	  	–	  	Real Property
	Schedule 8.01(13)	  	–	  	Insurance
	Schedule 8.01(17)	  	–	  	Corporate Structure
	Schedule 8.01(18)	  	–	  	Jurisdictions and Addresses
	Schedule 8.01(19)	  	–	  	Intellectual Property
	Schedule 8.01(23)	  	–	  	Environmental
	Schedule 8.01(27)	  	–	  	Non-arm’s Length Transactions
	Schedule 9.04(20)	  		  	Hedge Arrangements

  
 -iv- 

 CREDIT AGREEMENT 

THIS AGREEMENT is made as of February 22, 2019 

BETWEEN: 
 SUNDIAL GROWERS INC., a
corporation existing under the laws of the Province of Alberta (hereinafter referred to as the “Borrower”) 
 - and - 

BANK OF MONTREAL, as Lender (the “Lender”) 

WHEREAS the Borrower has requested the Credit Facility and the Lender has agreed to provide the Credit Facility to the Borrower on the
terms and conditions herein set forth; 
 NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the covenants and
agreements herein contained the parties hereto agree as follows: 
 ARTICLE 1 - INTERPRETATION 

 

	1.01	 Definitions 

In this Agreement, unless something in the subject matter or context is inconsistent therewith: 

“Acquisition” shall mean, with respect to any Person, any purchase or other acquisition, regardless of how accomplished or effected (including
any such purchase or other acquisition effected by way of amalgamation, merger, arrangement, business combination or other form of corporate reorganization or by way of purchase, lease or other acquisition arrangements), of: (a) any other
Person (including any purchase or acquisition of such number of the issued and outstanding securities of, or such portion of an Equity Interest in, such other Person) such that such other Person becomes a Subsidiary of the purchaser or of any of its
Affiliates; (b) all or substantially all of the Property of any other Person; or (c) all or any material portion of all of any division, business, or operation or undertaking of any other Person as a going concern. 

“Advance” means a borrowing by the Borrower under the Credit Facility and any reference relating to the amount of Advances shall mean the sum
of the principal amount of all outstanding Advances. 
 “Affiliate” means, with respect to a specified Person, another Person that directly
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common Control with the Person specified. 

“AGLC” means the Alberta Gaming, Liquor and Cannabis Commission. 

  
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 “AGLC Supply Agreement” means the guaranteed wholesale supply agreement dated
August 30, 2018 between the Borrower and AGLC. 
 “Agreement” means this credit agreement, the schedules and all amendments made
hereto in accordance with the provisions hereof, as amended, revised, replaced, supplemented or restated from time to time. 
 “AML
Legislation” has the meaning set forth in Section 15.16. 
 “Anti-Corruption Laws” has the meaning set forth in
Section 8.01(28). 
 “Applicable Law” means: (a) any domestic or foreign statute, law (including common and civil law), treaty,
code, ordinance, rule, regulation, restriction or by-law (zoning or otherwise); (b) any judgment, order, writ, injunction, decision, ruling, decree or award; (c) any regulatory policy, practice, request,
guideline or directive; or (d) any franchise, licence, qualification, authorization, consent, exemption, waiver, right, permit or other approval of any Governmental Authority, binding on or affecting the Person referred to in the context in
which the term is used or binding on or affecting the property of such Person, in each case having the force of law. 
 “Applicable Order”
means any applicable domestic or foreign order, judgment, award or decree made by any court or Governmental Authority. 
 “Arm’s
Length” has the meaning specified in the definition of “Non-Arm’s Length”. 

“Assignment and Assumption” means an assignment and assumption entered into by the Lender and an Eligible Assignee and accepted by the
Lender. 
 “ATB” means ATB Financial. 

“ATB Agreement” means the amended and restated commitment letter between the Borrower and ATB dated December 19, 2018 pursuant to which
ATB establishes credit facilities in an aggregate amount of up to $49,000,000. 
 “Auditor” means the Borrower’s auditor, being KPMG
LLP, and includes its successors and any replacement auditor from time to time. 
 “Auxly” means Auxly Cannabis Group Inc., formerly
Cannabis Wheaton Investment Corp. 
 “Auxly Agreement” means the note purchase agreement dated as of February 16, 2018 between Auxly
and the Borrower, as amended. 
 “Basel III” means: (a) the agreements on capital requirements, leverage ratio and liquidity standards
contained in “Basel III: A global regulatory framework for more resilient banks and banking systems”, “Basel III: International framework for liquidity risk measurement standards and monitoring” and “Guidance for national
authorities operating the countercyclical capital buffer” published by the Basel Committee on Banking Supervision in December 2010, each as amended, supplemented or restated; and (b) any further guidance or standards published by the Basel
Committee on Banking Supervision relating to “Basel III”. 

  
 2 

 “BMO” means Bank of Montreal. 

“Borrower” means Sundial Growers Inc., a corporation incorporated under the laws of the Province of Alberta, and includes any successors and
permitted assigns. 
 “Borrower’s Counsel” means the firm of McCarthy Tetrault LLP or such other firm or firms of legal counsel as the
Borrower may from time to time designate. 
 “Bridge Farms” means Project Seed Topco Limited and its Subsidiaries. 

“Bridge Farms Boiler Loan” means a loan or loans not exceeding £2,000,000, in the aggregate, made available by the Borrower or another
Obligor to Bridge Farms to fund a deposit on a boiler for purposes of the operations of Bridge Farms. 
 “Business” means the business of
cultivating, producing and marketing cannabis products for distribution and sale, and including, as the case may be, the importation or export of such cannabis products and all other ancillary activities related to the foregoing. 

“Business Authorizations” means, at any time, all material governmental or like authorizations necessary or advisable for the Business. For
the avoidance of doubt, each of the Health Canada Licence and any export permit will constitute a Business Authorization. 
 “Business Day”
shall mean any day, other than a Saturday or a Sunday, on which banks generally are open for business in Toronto, Ontario and Calgary, Alberta. 

“Canadian Operations” means the Business conducted by the Obligors in Alberta and British Columbia. 

“Cannabis Act” means the Cannabis Act, SC 2018, c. 16. 

“Cannabis Laws” means the Cannabis Act and all other applicable laws with respect to the cultivation, production and purchase/sale
(including import and export) of cannabis (other than laws of general application). 
 “Cannabis Licence” means the Health Canada Licence.

 “Canadian Dollars”, “Cdn. Dollars” ,”Cdn.$” and “$” means the lawful money of Canada.

 “Capital Expenditures” means, without duplication, any expenditure (whether payable in cash or other property or accrued as a liability)
that, in conformity with GAAP, would be required to be classified as a capital expenditure of any Obligor on a consolidated basis. For certainty, Capital Expenditures include (i) the cost of assets acquired under Capital Leases and
(ii) expenditures for equipment which is purchased simultaneously with the trade-in of existing equipment owned by any Obligor, to the extent of the net purchase price of the purchased equipment after
giving effect to such trade-in. Capital Expenditures, however, exclude (x) expenditures made in connection with the replacement, repair or restoration of buildings, fixtures or equipment to the extent
reimbursed or financed from insurance or expropriation proceeds, (y) Capital Lease payments and (z) the cost of the acquisition of any business. 

  
 3 

 “Capital Lease” means, with respect to any Person, any lease of or other agreement
conveying the right to use any real or personal property by such Person that, in conformity with GAAP prior to 2019, is or should be accounted for as a capital lease on the balance sheet of that Person. 

“CEO Transaction” means the loan by the Borrower to its Chief Executive Officer of an amount not exceeding $400,000 concurrently with the
purchase by the Chief Executive Officer of Equity Interests in the Borrower for a purchase price of $1,000,000. 
 “Change in Law” means
the occurrence, after the date of this Agreement, of any of the following: (a) the adoption or taking effect of any Applicable Law; (b) any change in any Applicable Law or in the administration, interpretation or application thereof by any
Governmental Authority; or (c) the making or issuance of any Applicable Law by any Governmental Authority. 
 “Change of Control”
means: 
  

	 	(a)	 any person or persons acting jointly or in concert (within the meaning of the Securities Act (Alberta)),
will acquire ownership or control, directly or indirectly, the equity securities in the capital of the Borrower which have or represent more than 51% of all the votes entitled to be cast by shareholders for an election of the board of directors of
the Borrower; 

  

	 	(b)	 the Borrower transfers all or substantially all of its assets to any other Person if that transfer is not
otherwise permitted by the other provisions of this Agreement; 

  

	 	(c)	 any one of the Guarantors ceases to be a Wholly-Owned Subsidiary of the Borrower; or 

 

	 	(d)	 there is a material change in the Key Employees or the Executive Chairman of the board of directors of the
Borrower, and such person is not replaced by a person acceptable to the Lender within a reasonable period of time. 

 “Closing
Date” means February 22, 2019 or such later date as may be agreed to by the parties hereto. 
 “Collateral” means all
property, assets and undertaking of the Obligors (or, as applicable, any given Obligor) or any other Person encumbered by the Security, together with all proceeds thereof. 

“Compliance Certificate” means the certificate required pursuant to Section 9.03(3), substantially in the form annexed as Schedule C and
signed by a senior officer of the Borrower. 
 “Contingent Obligation” means, as to any Person, any obligation, whether secured or
unsecured, of such Person guaranteeing or indemnifying, or in effect guaranteeing or indemnifying, any liability (other than Debt) (the “primary obligations”) of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, including any obligation of such Person as an account party in respect of a letter of credit or letter of guarantee issued to assure payment by the primary obligor of any such primary obligation and any obligations of such
Person, whether or not contingent: (a) to purchase any such primary obligation or any Property constituting direct or indirect security therefor; (b) to advance or supply funds for the purchase or payment of any such

  
 4 

 
primary obligation or to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor; (c) to purchase
Property, securities or services primarily for the purpose of assuring the obligee under any such primary obligation of the ability of the primary obligor to make payment of such primary obligation; or (d) otherwise to assure or hold harmless
the obligee under such primary obligation against loss in respect of such primary obligation; provided, however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of
business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made (or, if less, the maximum amount of such
primary obligation for which such Person may be liable, whether singly or jointly, pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith. 
 “Control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the management or polices of a Person, whether through the ability to exercise voting power, by contract or otherwise. “Controlling” and
“Controlled” have corresponding meanings. 
 “Convertible Debentures” means the 12% unsecured subordinated convertible
notes issued by the Borrower in the aggregate principal amount not to exceed $28,900,000 with maturity dates which range from October 15, 2019 to November 15, 2019. 

“Credit Facility” means the non-revolving term credit facility in an aggregate principal amount of up
to $30,000,000. 
 “Debt” means, with respect to any Person, all present and future obligations and indebtedness of a person, whether
direct or indirect, absolute or contingent, including, without duplication, the aggregate of the following amounts, at the date of determination: 
  

	 	(a)	 all indebtedness of such Person to any other Person for borrowed money; 

 

	 	(b)	 all obligations of such Person for the deferred purchase price of Property or services which constitute
indebtedness; 

  

	 	(c)	 all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments;

  

	 	(d)	 all obligations of such Person created or arising under any conditional sale or other title retention agreement
with respect to Property acquired by such Person (whether or not the rights and remedies of the vendors or lender under such agreement in the event of default are limited to repossession or sale of such Property); 

 

	 	(e)	 all obligations of such Person as lessee under leases that have been, in accordance with GAAP, recorded as
Capital Leases and included on the balance sheet of such Person; 

  
 5 

	 	(f)	 all reimbursement obligations, contingent or otherwise, of such Person under bankers’ acceptance, letters
of credit and similar facilities; 

  

	 	(g)	 all obligations of such Person to purchase, redeem, retire, defease or otherwise acquire for value any Equity
Interests of such Person (for greater certainty, not including obligations with respect to unexercised options and rights of first refusal and where conditions precedent to the obligations have not occurred) prior to the Maturity Date for cash or
obligations constituting Debt or any combination thereof; 

  

	 	(h)	 without duplication, a Contingent Obligation to the extent that the primary obligation so guaranteed would be
classified as “Debt” (within the meaning of this definition) of such Person; 

  

	 	(i)	 all obligations of such Person under any Hedge Arrangements on a net mark to market basis; and

  

	 	(j)	 any other liabilities of such Person which in accordance with GAAP would appear on the liability side of a
balance sheet (other than items of capital, retained earnings and surplus or deferred tax reserves), including for certainty royalty obligations. 

The amount of Debt of any Person at any time in the case of a revolving credit or similar facility shall be the total amount of funds borrowed
and then outstanding. 
 “Debt Securities” means, with respect to the Borrower, any notes, bonds or debentures, whether or not convertible
into Equity Interests, or other instruments evidencing indebtedness of the Borrower for borrowed money. 
 “Default” means any event or
condition that constitutes an Event of Default or that would constitute an Event of Default except for satisfaction of any condition subsequent required to make the event or condition an Event of Default, including giving of any notice, passage of
time, or both. 
 “Default Rate” means the rate of eleven percent (11%) per annum. 

“Defined Benefit Pension Plan” means a Pension Plan which contains a “defined benefit provision”, as defined in subsection 147.1(1)
of the Income Tax Act (Canada). 
 “Disposition” means any sale, assignment, transfer, conveyance, lease or other disposition of any
asset of any Obligor in a single transaction or a series of related transactions and the word “Dispose” shall have a correlative meaning. 

“Distribution” means, with respect to any Person, any payment, directly or indirectly, by such Person: (a) of any dividends on any
Equity Interests, other than dividends or distributions payable in shares or other Equity Interests; (b) on account of, or for the purpose of setting apart any property for a sinking or other analogous fund for, the purchase, redemption,
retirement or other acquisition of any Equity Interests of such Person; (c) of any other distribution (other than distributions in shares or other Equity Interests) in respect of any Equity Interests of such Person including a return of
capital; (d) of any management, monitoring, consulting, advisory or similar fee or compensation (of any nature or kind) or any bonus payment or comparable payment, or by way of gift or other 

  
 6 

 
gratuity, to the extent such distributions are made in cash, to any Affiliate of such Person (including to a direct or indirect parent) or to any director, officer or member of the management of
an Affiliate of such Person; (e) of any principal, interest or other amounts (other than payments in kind) on account of Subordinated Debt, (f) of any amounts on account of the Share Purchase Promissory Note, (g) of any amounts on
account of the Royalty Agreement; or (h) any advance of loans or other financial assistance; provided that payments, directly or indirectly, by an Obligor in the course of its business of salary to employees, officers and members of
management of Obligors and expense reimbursement to directors, employees and officers shall not constitute Distributions hereunder. 

“Drawdown” means the advance of an Advance. 

“Drawdown Date” means the date on which a Drawdown is made by the Borrower pursuant to the provisions hereof and which shall be a Business
Day. 
 “Drawdown Notice” means the Notice of Request for Advance substantially in the form annexed hereto as Schedule A to be given to the
Lender by the Borrower. 
 “EBITDA” means, with respect to the Borrower and its Subsidiaries on a consolidated basis for any period,
“EBITDA” means, for any period, on a consolidated basis, net income (excluding securities-based compensation and extraordinary items) of Borrower and any Guarantor from continuing operations plus, to the extent deducted in
determining net income: 
  

	 	(a)	 Interest Expense of Borrower or such Guarantor; 

 

	 	(b)	 income taxes expensed during the period; and 

 

	 	(c)	 depreciation, depletion and amortization deducted for the period, in calculating net income and other non-cash items. 

 “Eligible Assignee” means any Person in respect of which any consent
that is required by Section 14.02 has been obtained. 
 “Encumbrance” means, in respect of any Person, any mortgage, debenture,
pledge, hypothec, lien, charge, assignment by way of security, hypothecation or security interest granted or permitted by such Person or arising by operation of law, in respect of any of such Person’s Property, or any consignment or Capital
Lease of Property by such Person as consignee or lessee or any other security agreement, trust or arrangement having the effect of security (other than a right of set-off) for the payment of any debt,
liability or obligation, and “Encumbrances” and “Encumbrancer” shall have corresponding meanings; provided, that in no event shall an operating lease be deemed to be an Encumbrance. 

“Environmental Liability” means any liability of an Obligor arising from the breach of any Requirements of Environmental Law. 

  
 7 

 “Equity Interest” means: (a) in the case of any corporation, all capital stock and any
securities exchangeable for or convertible into capital stock; (b) in the case of an association or business entity, any and all shares, interests, participation rights or other equivalents of corporate stock (however designated) in or to such
association or entity; (c) in the case of a partnership, limited liability company or unlimited liability company, partnership or membership interests (whether general or limited), as applicable; and (d) any other ownership interest or
participation that confers on a Person the right to receive a share of the profits and losses of, or distribution of assets of, the issuing Person, and including, in all of the foregoing cases described in clauses (a), (b), (c) or (d), any warrants,
rights or other options to purchase or otherwise acquire any of the interests described in any of the foregoing cases. 
 “Event of
Default” means any of the events or circumstances described in Section 11.01. 
 “Excluded Taxes” means, with respect to the
Lender, the Lender or any other recipient of any payment to be made by or on account of any obligation of an Obligor hereunder or under any other Loan Document (each, a “Recipient”): (a) Taxes imposed on or measured by its net
income, capital Taxes and franchise Taxes imposed on it, in each case, (i) by the jurisdiction (or any political subdivision thereof) under the laws of which such Recipient is organized or in which its principal office is located or, in the
case of the Lender, in which its applicable lending office is located, or (ii) that are Other Connection Taxes; (b) any branch profits Taxes or any similar Tax imposed by any jurisdiction described in clause (a) with respect to the
Recipient; (c) Taxes imposed under FATCA; (d) any Tax that is directly attributable to such Recipient’s failure to comply with Section 13.02(6); (e) any Canadian withholding Taxes imposed on a payment by or on account of any
obligation of an Obligor hereunder or under any other Loan Document by reason of (i) the Recipient not dealing at Arm’s Length with the Obligor at the time of making such payment, or (ii) the payment being in respect of a debt or
other obligation to pay an amount to a Person with whom the payer is not dealing at Arm’s Length at the time of such payment; and (f) any Taxes imposed on a Recipient by reason of such Recipient (i) being a “specified
shareholder” (as defined in subsection 18(5) of the Income Tax Act (Canada)) of any Obligor, or (ii) not dealing at Arm’s Length with a “specified shareholder” (as defined in subsection 18(5) of the Income Tax Act
(Canada)) of any Obligor. 
 “Executive Order” has the meaning set forth in Section 8.01(29). 

“FATCA” means Sections 1471 through 1474 of the IRC as of the date of this Agreement (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof, any agreement entered into pursuant to Section 1471(b)(i) of the IRC, or any fiscal or regulatory
legislation, rules or practices adopted pursuant to any intergovernmental agreement entered into in connection with the implementation of such Sections of the IRC. 

“FCC” means Farm Credit Canada. 
 “FCC
Agreement” means the credit agreement between FCC and the Borrower dated October 22, 2018 pursuant to which FCC established a credit facility in the aggregate amount of $7,000,000 in favour of the Borrower. 

  
 8 

 “Financial Assistance” means, without duplication and with respect to any Person, all loans
made by that Person and guarantees or Contingent Obligations granted or incurred by that Person for the purpose of or having the effect of providing financial assistance to another Person or Persons, including, without limitation, letters of
guarantee, letters of credit, legally binding comfort letters or indemnities issued in connection therewith, endorsements of bills of exchange (other than for collection or deposit in the ordinary course of business), obligations to purchase assets
regardless of the delivery or non-delivery thereof and obligations to make advances or otherwise provide financial assistance to any other entity and for greater certainty “Financial Assistance”
shall include any guarantee of any third party lease obligations. 
 “Financial Covenants” means the covenants set forth in
Section 9.02. 
 “Fiscal Quarter” means each quarter that ends on March 31st,
June 30th, September 30th and December 31st of each calendar year. 

“Fiscal Year” means a twelve-month period ending on December 31st of any year. 

“Foreign Official” has the meaning set forth in Section 8.01(28). 

“GAAP” means the “Accounting Standards for Private Enterprises (ASPE)” in effect from time to time in Canada or IFRS, as the case
may be. 
 “Governmental Authority” means the government of Canada or any other nation, or of any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government,
including any supra-national bodies such as the European Union or the European Central Bank and including a Minister of the Crown, Superintendent of Financial Institutions or other comparable authority or agency. 

“Guarantors” means, collectively: (a) as of the Closing Date, the Subsidiaries of the Borrower identified on Schedule D; (b) each
Subsidiary of the Borrower that is required to become a Guarantor pursuant to Section 9.01(10) from time to time; and (c) each other Subsidiary of the Borrower that delivers a guarantee and security. 

“Hazardous Material” means any substance, product, waste, pollutant, material, chemical, contaminant, dangerous goods, hazardous waste,
constituent or other material listed, regulated, or addressed under any Requirements of Environmental Law, including, without limitation, damaged and friable asbestos, petroleum product or by-product, and
polychlorinated biphenyls. 
 “Health Canada Licence” means, collectively, any licence issued by Health Canada to any of the Loan Parties
in respect of the Business, including without limitation: 
  

	 	(a)	 licence no. LIC-K8399K3QIB-2018 dated November 8, 2018 granted to
the Borrower to cultivate cannabis pursuant to the Cannabis Act at 6102 48th Avenue, Olds, AB T4H 1V1, as supplemented by license no. LIC-K8399K3QIB- 2018-2 dated
February 1, 2019 and as further amended, supplemented or otherwise modified from time to time; and 

  
 9 

	 	(b)	 licence no. LIC-4QZ85KDBPT-2018 dated November 9, 2018 granted to
the Borrower to cultivate cannabis pursuant to the Cannabis Act at 273209 Range Road 20, M.D. Rocky View No. 44, Airdrie, AB T4B 2A3, as supplemented by licence no.
LIC-4QZ85KDBPT-2018-1 dated December 14, 2018 and as further amended, supplemented or otherwise modified from time to time. 

“Hedge Arrangement” means, for any period, for any Person, any arrangement or transaction between such Person and any other Person which is
an interest rate swap transaction, basis swap, forward interest rate transaction, commodity swap, interest rate option, forward foreign exchange transaction, cap transaction, floor transaction, collar transaction, currency swap transaction,
cross-currency interest rate swap transaction, currency option or any other similar transaction (including any option with respect to any of such transactions or arrangements) designed to protect or mitigate against risks in interest, currency
exchange or commodity price fluctuations. 
 “IFRS” means the International Financial Reporting Standards, as used by the International
Accounting Standards Board. 
 “Indemnified Taxes” means Taxes other than Excluded Taxes. 

“Indemnitee” has the meaning set forth in Section 12.01(b). 

“Intellectual Property” means the intellectual property in patents, patent applications, trade-marks, trade-mark applications, trade names,
service marks, copyrights, copyright registrations and trade secrets (including, without limitation, customer lists and information and business opportunities), industrial designs, proprietary software, technology and formulae and other similar
intellectual property rights. 
 “Intercreditor Agreement” means the intercreditor agreement made on or around the date of this Agreement
among ATB, the Lender, FCC, 2082033 Alberta Ltd. and the Borrower; 
 “Interest Expense” means, with respect to any Person for any period,
means, without duplication, interest expense of such Person calculated on a consolidated basis and in accordance with GAAP as the same would be set forth or reflected on a consolidated statement of earnings of such Person and, in any event and
without limitation, will include: 
  

	 	(a)	 all cash interest paid or payable in respect of such period; 

 

	 	(b)	 all fees (including letter of credit, guarantee and bankers’ acceptances or guaranteed notes fees) accrued
or payable in respect of such period and which relate to any Debt pro-rated (as required) over such period; 

  

	 	(c)	 any difference between the face amount and the discount proceeds of any bankers’ acceptances or guaranteed
notes issued by such Person and other obligation issued at a discount, pro-rated (as required) over such period; 

  

	 	(d)	 the interest component of capital lease obligations and any other financing lease obligations (whether a
synthetic lease or otherwise and whether categorized as a true lease or a financing lease for income tax purposes) accrued or payable in respect of such period; and 

  
 10 

	 	(e)	 all net amounts charged or credited to interest expense in respect of such period under any Hedging Agreement.

 “Interest Rate” means the rate of nine percent (9%) per annum. 

“Investment” in any Person means any direct or indirect: (a) acquisition of any Equity Interest in any other Person; or (b) loan or
advance or other Financial Assistance made to or for the benefit of any other Person. In determining the amount of any Investment involving a transfer of any Property other than cash, such Property shall be valued at its fair market value at the
time of such transfer. 
 “Key Employees” means the persons carrying out the roles of “Chief Financial Officer” –
“CFO”, or “Chief Executive Officer” – “CEO”. 
 “Lender” means BMO and includes each of its successors
and permitted assigns. 
 “Lender’s Counsel” means the firm of Davies Ward Phillips & Vineberg LLP. 

“Lender’s Payment Branch” means the branch of the Lender located at [***], or such other office that the Lender may from time to time
designate by notice to the Borrower and the Lenders. 
 “Lending Office” means, with respect to a particular Lender, the branch or office
specified in Schedule A from which the Lender makes Advances and to which the Lender disburses payments received for the benefit of the Lender. 

“Loan Documents” means this Agreement, the Security, all guarantees delivered by any Guarantor pursuant to this Agreement, the Intercreditor
Agreement, that certain commitment letter dated February 14, 2019 and the accompanying signed schedule relating to the fee payable to the Lender in consideration of it establishing the Credit Facility and each document, agreement and, to the
extent designated by the Borrower and the Lender as a Loan Document, each instrument, delivered to the Lender by or on behalf of an Obligor or any other Person (in the case of any other Person, as required by the terms of this Agreement) on or after
the Closing Date in each case as such document, agreement or instrument may from time to time be supplemented, revised, replaced, amended or restated, and “Loan Document” means any one of the Loan Documents. 

“Material Adverse Effect” means a material adverse effect on: (a) the business, operations, properties, assets or condition (financial
or otherwise) of the Obligors, taken as a whole; (b) the Material Licences, (c) the legality, validity or enforceability of any of the Loan Documents, including the validity, enforceability, perfection or priority of any Encumbrance
created under any of the Security; (d) the ability of Obligors to pay or perform any of its debts, liabilities or obligations under any of the Loan Documents; (e) the right, entitlement or ability of the Lender to enforce their material
rights or remedies under any of the Loan Documents; or (f) any departure of a Key Employee unless such departure does not result in an event of default under the ATB Agreement and such person is replaced within 30 days of the departure. 

“Material Contracts” means, collectively, (a) the Material Licences, (b) the AGLC Supply Agreement, (c) any agreement which is
a “Material Project Document” under the ATB Agreement, and (d) any other agreement, contract or legally binding arrangement entered into from time to time by an Obligor or to which any of their property or assets may be subject for
which breach, non-performance, cancellation, failure to renew, failure to replace, termination, revocation or lapse could reasonably be expected to have a Material Adverse Effect. 

  
 11 

 “Material Licences” means the Health Canada Licences and each licence, permit or approval
issued by any Governmental Authority to any Obligor the breach or default in respect of which could reasonably be expected to result in a Material Adverse Effect. 

“Maturity Date” means the earlier of May 15, 2019 and the date on which the Credit Facility are terminated pursuant to
Section 11.02. 
 “Net Proceeds” means with respect to the issuance of any Equity Interests or Debt Securities by any Person or of any
capital contributions by any Person in such Person, the net amount equal to the aggregate amount received in cash in connection with such issuance or contribution by any Person in such Person, less the sum of reasonable fees, including reasonable
accounting, advisory and legal fees, commissions and other out-of-pocket expenses (as evidenced by supporting documentation provided to the Lender) incurred or paid for
by such Person in connection with the issuance of any such Equity Interests or Debt Securities or of any capital contributions by any Person in such Person. 

“Non-Arm’s Length” and similar phrases have the meaning attributed thereto for the purposes of
the Income Tax Act (Canada); and “Arm’s Length” shall have the opposite meaning. 
 “Obligations” means, with
respect to any Obligor, all of its present and future indebtedness, liabilities and obligations of any and every kind, nature or description whatsoever (whether direct or indirect, joint or several or joint and several, absolute or contingent,
matured or unmatured, in any currency and whether as principal debtor, guarantor, surety or otherwise, including without limitation any interest that accrues thereon after or would accrue thereon but for the commencement of any case, proceeding or
other action, whether voluntary or involuntary, relating to the bankruptcy, insolvency or reorganization whether or not allowed or allowable as a claim in any such case, proceeding or other action) to the Lender (and its Affiliates), and any of them
under, in connection with, relating to or with respect to each of the Loan Documents and any and all Service Agreements. 
 “Obligors”
means, collectively, the Borrower and the Guarantors. As of the Closing Date and after giving effect to the UK Acquisition, the Obligors consist of each of the Persons identified on Schedule D. 

“OFAC” means The Office of Foreign Assets Control of the US Department of the Treasury. 

“OFAC Sanctions Programs” means all laws, regulations, and Executive Orders administered by OFAC and all economic and trade sanction programs
administered by OFAC or the US Department of State, any and all similar United States federal laws, regulations or Executive Orders, and any similar laws, regulations or orders adopted by any State within the United States. 

“Organizational Documents” means, with respect to any Person, such Person’s articles or other charter documents, by-laws, shareholder agreement, partnership agreement, joint venture agreement, limited liability company agreement or trust agreement, as applicable, and any and all other similar agreements, documents and
instruments relative to such Person. 

  
 12 

 “Other Connection Taxes” means, with respect to the Lender, the Lender or any other
recipient of any payment to be made by or on account of an Obligor hereunder or under any other Loan Document, Taxes imposed as a result of a present or former connection between such person and the jurisdiction imposing such Tax (other than
connections arising solely from such person having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, this Agreement or enforced this Agreement or any
other Loan Document). 
 “Other Taxes” means all present or future stamp, court or documentary, intangible, recording, filing or similar
taxes or any other excise or property taxes, charges or similar levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery, performance, registration or enforcement of, from the receipt or
perfection of a security interest under, or otherwise with respect to, this Agreement or any other Loan Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment. 

“Participant” shall have the meaning ascribed to such term in Section 14.03. 

“Pension Benefits Act” means the Pension Benefits Act (Alberta) or similar minimum standards pension legislation of another
jurisdiction to the extent it may apply to a Pension Plan. 
 “Pension Event” means: (a) the failure of an Obligor to make or remit
any employer or employee contributions with respect to any Pension Plan required by Applicable Law or by the terms of such Pension Plan, except where such failure could not reasonably be expected to have a Material Adverse Effect; (b) the
revocation of registration by applicable Governmental Authorities of a Defined Benefit Pension Plan; (c) the material failure of a Pension Plan to comply with the provisions of Applicable Law or with the terms of such Pension Plan; (d) (i)
the filing of a notice with a Governmental Authority to, (ii) the institution of proceedings by any Governmental Authority to, or (iii) the actual, termination or wind up of all or a part of a Defined Benefit Pension Plan; or (e) a
trustee is appointed to administer a Defined Benefit Pension Plan. 
 “Pension Plan” means a “registered pension plan” as defined
in subsection 248(1) of the Income Tax Act (Canada) and in respect of which the Obligor is an employer for the purposes of the Pension Benefits Act. 

“Permitted Debt” means: 
  

	 	(a)	 Debt under this Agreement; 

 

	 	(b)	 Debt under the ATB Agreement not exceeding $49,000,000 in principal amount; 

 

	 	(c)	 Debt under the FCC Agreement not exceeding $7,000,000 in principal amount; 

 

	 	(d)	 Debt under the Royalty Agreement not exceeding $11,000,000; 

  
 13 

	 	(e)	 Debt under Convertible Debentures outstanding on the Closing Date and not exceeding $28,900,000 in principal
amount; 

  

	 	(f)	 Debt under the Share Purchase Promissory Note; 

 

	 	(g)	 Debt secured by Purchase Money Security Interests not exceeding $250,000 in the aggregate;

  

	 	(h)	 obligations under Capital Leases not exceeding $250,000 in the aggregate; 

 

	 	(i)	 Permitted Intercompany Debt; 

 

	 	(j)	 Hedge Arrangements between the Borrower and ATB existing on the Closing Date and described in Schedule
9.04(20); 

  

	 	(k)	 Debt under Service Agreements and Debt of the Borrower and/or any Obligor to ATB or the Lender in respect of
corporate credit cards, commercial credit cards, stored value cards, purchasing cards, treasury management services, netting services, overdraft protections, check drawing services, automated payment services, cash pooling services and any
arrangements or services similar to any of the foregoing and/or otherwise in connection with cash management and deposit accounts; 

  

	 	(l)	 Debt owed to (including obligations in respect of letters of credit or bank guarantees or similar instruments
for the benefit of) any Person providing workers’ compensation, securing unemployment insurance and other social security laws or regulation, health, disability or other employee benefits, salary, wages or other compensation or property,
casualty or liability insurance or other similar obligations to the Borrower or any Subsidiary pursuant to reimbursement and indemnification obligations to such person, in each case, in the ordinary course of business; 

 

	 	(m)	 Debt in respect of bid bonds, statutory obligations, surety, stay, customs and appeal bonds, performance,
performance and completion and return of money bonds, and similar obligations, in each case provided in the ordinary course of business, including those incurred to secure health, safety and environmental obligations in the ordinary course of
business; 

  

	 	(n)	 unfunded pension fund and other employee benefit plan obligations and liabilities incurred in the ordinary
course of business to the extent that they are permitted to remain unfunded under Applicable Law; 

  

	 	(o)	 to the extent constituting Debt, obligations of the Borrower and/or any other Obligor under the UK Purchase
Agreement; 

  

	 	(p)	 trade payables incurred in the ordinary course of business and not overdue; 

  
 14 

	 	(q)	 guarantees by the Borrower and/or any Obligor of Debt or other obligations of the Borrower and/or any other
Obligor with respect to Debt otherwise permitted to be incurred pursuant to this definition of “Permitted Debt” or other obligations not prohibited by this Agreement; and 

 

	 	(r)	 Debt consented to in writing by the Lender from time to time. 

“Permitted Disposition” means: 
  

	 	(a)	 the Disposition of inventory in the ordinary course of business; 

 

	 	(b)	 Dispositions of used, surplus, obsolete or worn-out property and
equipment in the ordinary course of business for nominal consideration; and 

  

	 	(c)	 the unwinding of any Hedge Arrangement pursuant to its terms. 

“Permitted Distributions” means: 
  

	 	(a)	 Distributions paid by any Subsidiary to the Borrower; 

 

	 	(b)	 payments made by any Subsidiary to the Borrower on Permitted Intercompany Debt; 

 

	 	(c)	 to the extent it would constitute a Distribution, payments made under the ATB Agreement or the FCC Agreement in
accordance with the Intercreditor Agreement; 

  

	 	(d)	 provided that no Default or Event of Default has occurred and is continuing, payments on the Convertible
Debentures when due; 

  

	 	(e)	 provided that no Default or Event of Default has occurred and is continuing, payments of interest on the Share
Purchase Promissory Note, at a rate not exceeding 1% per month, when due; 

  

	 	(f)	 royalty payments in the ordinary course of business, other than payments under the Royalty Agreement; and

  

	 	(g)	 the loan to the Chief Executive Officer of the Borrower pursuant to the CEO Transaction. 

“Permitted Encumbrances” means, with respect to any Person or Property, the following: 

 

	 	(a)	 Encumbrances securing the obligations of the Borrower under the ATB Facility and limited to $60,000,000;

  

	 	(b)	 Encumbrances securing the obligations of the Borrower under the FCC Facility against Net Proceeds from the
exercise of the Sundial April Warrants limited to $7,500,000 or which rank after and are subject to the Encumbrances securing the Obligations of the Borrower; 

  
 15 

	 	(c)	 the Security; 

  

	 	(d)	 security interests granted to or assumed by parties (excluding intermediaries with respect to purchasing
agreements) in connection with the financing of the purchase of any property or asset (a “Purchase Money Security Interest”) where: 

  

	 	(i)	 the security interest is granted at the time of or within 60 days after the purchase; 

 

	 	(ii)	 the security interest is limited to the property and assets acquired; and 

 

	 	(iii)	 the Debt represented by all Purchase Money Security Interests does not at any time exceed $250,000 in the
aggregate; 

  

	 	(e)	 Encumbrances arising from Capital Leases not exceeding $250,000 in the aggregate; 

 

	 	(f)	 Encumbrances for Taxes, assessments and other governmental charges or levies not yet due or for which
installments have been paid based on reasonable estimates pending final assessments, or if due, the validity of which is being contested diligently and in good faith by appropriate proceedings by that Person and in respect of which reasonable
reserves under GAAP are maintained; 

  

	 	(g)	 inchoate liens, rights of distress and charges incidental to current operations which have not at such time
been filed or exercised and of which the Lender has not been given notice, or which relate to obligations not due or payable, or the validity of which is being contested diligently and in good faith by appropriate proceedings by that Person;

  

	 	(h)	 reservations, limitations, provisos and conditions expressed in any original grants from the Crown or other
grants of real or immovable property, or interests therein; 

  

	 	(i)	 zoning, land use and building restrictions, survey exceptions, by-laws,
regulations and ordinances of federal, provincial, state, municipal and other Governmental Authorities, licences, easements, rights-of-way and rights in the nature of
easements (including, without limiting the generality of the foregoing, licences, restrictions, easements, servitudes, rights-of-way and rights in the nature of
easements for railways, sidewalks, public ways, sewers, drains, gas, steam and water mains or electric light and power, or telephone and telegraph conduits, poles, wires and cables); 

 

	 	(j)	 title defects, encroachments or irregularities or other matters relating to title which in the aggregate do not
materially impair the use of the affected property for the purpose for which it is used by that Person; 

  

	 	(k)	 the right reserved to or vested in any municipality or governmental or other public authority by the terms of
any lease, licence, franchise, grant or permit acquired by that Person or by any statutory provision to terminate any such lease, licence, franchise, grant or permit, or to require annual or other payments as a condition to the continuance thereof;

  
 16 

	 	(l)	 (i) pledges and deposits made (including to support obligations in respect of letters of credit, bank
guarantees or similar instruments to secure) in the ordinary course of business in compliance with any workers’ compensation, employment insurance and other social security laws or regulations and deposits securing premiums or liability to
insurance carriers under insurance arrangements in respect of such obligations and (ii) pledges and deposits securing liability for reimbursement or indemnification obligations of (including to support obligations in respect of letters of
credit, bank guarantees or similar instruments for the benefit of) insurance carriers in respect of property, casualty or liability insurance to the Borrower or any Subsidiary provided by such insurance carriers; 

 

	 	(m)	 security given to a public utility or any municipality or Governmental Authority when required by such utility
or authority in connection with the operations of that Person in the ordinary course of its business provided that such security does not materially impair the use of the affected property for the purpose for which it is used by that Person;

  

	 	(n)	 Encumbrances arising solely by virtue of any statutory or common law provisions relating to banker’s
liens, liens in favor of securities intermediaries, rights of setoff or similar rights and remedies as to deposit accounts or securities accounts or other funds maintained with depository institutions and securities intermediaries and other
Encumbrances securing cash management services and “bank products” in the ordinary course of business; 

  

	 	(o)	 Encumbrances arising from the right of distress enjoyed by landlords or Encumbrances otherwise granted to
landlords (including, without limitation, Encumbrances over rent deposits), in either case, to secure the payment of arrears of rent in respect of leased properties; 

 

	 	(p)	 servicing agreements, development agreements, site plan agreements and other agreements with Governmental
Authorities pertaining to the use or development of any of the assets of the Person, provided same are complied with in all material respects and do not materially impair the use of such assets in the operation of the business of such Person;

  

	 	(q)	 easements, rights-of-way,
servitudes and other similar rights in land granted to, reserved in favor of any Person (other than those in (i) above) and any registered, servicing, cost sharing or other similar agreement with such Persons that do not and would not
reasonably be likely to materially detract from the value of the asset or property subject thereto or materially impair the continued use and/or occupancy of such asset or property in connection with the operations of the Obligors as currently
conducted; 

  
 17 

	 	(r)	 rights of expropriation, access, use or any other right conferred or reserved by any governmental body under
Applicable Law; 

  

	 	(s)	 the provisions of Applicable Law including, zoning, land use and building restrictions, bylaws, regulations and
ordinances of governmental bodies, including municipal regulations, airport zoning regulations, restrictive covenants and other land use limitations, public or private, and regulations and other restrictions as to the use of the real property or
leased real property that do not and would not reasonably be likely to materially detract from the value of the asset or property subject thereto or materially impair the continued use and/or occupancy of such asset or property in connection with
the operations and use of the Obligors as conducted on the Closing Date; 

  

	 	(t)	 any interest or title of a lessor under any real property lease including any reservations, conditions and
encumbrances set out in the real property leases, and all encumbrances recorded or registered on title to the leased real property which (i) relate to the lessor’s interest in the leased real property; (ii) the Obligors have no right
to remove and/or discharge from title pursuant to such real property lease (including ground leases and lessor granted mortgages) and (iii) Encumbrances recorded or registered on title to the owned real property or leased real property as of
the Closing Date that do not and would not reasonably be likely to materially detract from the value of the asset or property subject thereto or materially impair the continued use and/or occupancy of such asset or property in connection with the
operations and use of the Obligors as currently conducted; 

  

	 	(u)	 the exceptions to coverage set out in any policies of title insurance in favor of the Obligors and any
Encumbrance insured over pursuant to an owner’s title insurance policy issued in favor of an Obligor that continues to be valid on the Closing Date; 

  

	 	(v)	 Encumbrances to secure any permitted refinancing, refunding, extension, renewal or replacement (or permitted
successive refinancings, refundings, extensions, renewals or replacements) as a whole, or in part, of any Debt secured by any Encumbrances referred to in the foregoing clauses; provided, however, that (x) such new Encumbrance shall be limited
to all or part of the same property that was encumbered by the original Encumbrance (plus improvements on such property); and (y) such Debt is not increased; 

 

	 	(w)	 any interest or title of a lessor, sublessor, licensor or sublicencee under any leases, subleases, licences or
sublicences entered into by the Borrower or any Subsidiary in the ordinary course of business; and 

  

	 	(x)	 such other Encumbrances as agreed to in writing by the Lender in accordance with this Agreement.

 “Permitted Intercompany Debt” means unsecured and subordinated Debt owing by one Obligor to another Obligor. 

  
 18 

 “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity. 
 “Pre-IPO Private
Placement Security” means the security or securities (which may be unsecured debt securities or Equity Interests or a combination thereof) to be issued by the Borrower by private placement after the Closing Date and on or before
May 15, 2019. 
 “Property” means, with respect to any Person, all or any portion of its undertaking, property and assets, both real
and personal, including for greater certainty all real property (including leasehold interest in real property), personal property, fixed assets, equipment, accounts receivable, inventory, intellectual property, any share in the capital of a
corporation or ownership interest in any other Person and all other assets and undertaking of such Person. 
 “Purchase Money Security
Interest” has the meaning set forth in the definition of “Permitted Encumbrances”. 
 “Qualified IPO” means the issuance
and sale by the Borrower of its common Equity Interests in an underwritten or agency primary or initial public offering (other than a public offering pursuant to a registration statement on Form S-8 or any
equivalent form under any applicable securities laws) pursuant to an effective registration statement or prospectus filed with the applicable securities regulatory authority. 

“Qualified Jurisdictions” means any country where it is legal on a federal, state, local and all other basis to undertake the Business of the
Borrower and/or Guarantors; provided that the Qualified Jurisdiction shall not include the United States of America. 
 “Recipient” has the
meaning set forth in the definition of “Excluded Taxes”. 
 “Related Parties” means, with respect to any Person, such
Person’s Affiliates and the directors, officers, employees and agents of such Person and of such Person’s Affiliates. 
 “Repayment
Notice” means the notice substantially in the form annexed hereto as Schedule B. 
 “Requirements of Environmental Law” means all
requirements of statutes, regulations, by-laws, ordinances, treaties, judgments and decrees, and (to the extent that they have the force of law) rules, guidelines, orders, approvals, notices, permits and
directives of any federal, territorial, provincial, state, regional, municipal or local judicial, regulatory or administrative agency, board or Governmental Authority in Canada and any other jurisdiction in which any Obligor has operations or
assets, where such requirements relate to environmental or occupational health and safety matters (as they relate to exposure to a Hazardous Material) and the assets and undertaking of any Obligor and the intended uses thereof, including but not
limited to, all such requirements relating to: (a) the protection, preservation or remediation of the natural environment (the air, land, surface water or groundwater); (b) solid, gaseous or liquid waste generation, handling, treatment,
storage, disposal or transportation; (c) occupational safety and health (as they relate to exposure to a Hazardous Material); and (d) the regulation of Hazardous Materials. 

  
 19 

 “Requirements of Law” means, as to any Person, the Organizational Documents of such Person
and any Applicable Law, or determination of a Governmental Authority having the force of law (but nevertheless including determinations of a Governmental Authority not having the force of law if responsible and prudent Persons engaged in a business
similar to the Business would observe such determinations), in each case applicable to or binding upon such Person or any of its business or Property or to which such Person or any of its business or Property is subject. 

“Responsible Officer” of any Person means any executive officer or chief financial officer, principal accounting officer, treasurer,
assistant treasurer or controller of such Person and any other officer or similar official thereof responsible for the administration of the obligations of such Person in respect of this Agreement. 

“Restricted Person” has the meaning set forth in Section 8.01(29). 

“Royalty Agreement” means the amended and restated investment and royalty agreement dated as of August 16, 2018 between 2082033 Alberta
Ltd., as purchaser, and the Borrower. 
 “Sale and Lease-Back Transaction” means any arrangement with a person (other than the Borrower or
any of its Subsidiaries), or to which any such person is a party, providing for the leasing to the Borrower or any of its Subsidiaries of property which directly or indirectly has been or is to be sold or transferred by the Borrower or any of its
Subsidiaries to such person in each case where the purchaser and lessor is Arm’s Length to the applicable Obligor. 
 “Sanction(s)”
means any international economic sanction administered or enforced by the United States Government (including without limitation, OFAC and the U.S. Department of State), Canada, the United Nations Security Council, the European Union, Her
Majesty’s Treasury or other relevant sanctions authority. 
 “Security” means all security (including guarantees) held from time to
time by or on behalf of the Lender securing or intended to secure directly or indirectly repayment of the Obligations and includes, without limitation, all security described in Article 10. 

“Security Documents” means the documents referred to in Article 10. 

“Service Agreements” means agreements made between an Obligor and the Lender or an Affiliate of the Lender in respect of cash management
(including bank accounts), payroll or other banking services (including for certainty, credit and other charge cards). 
 “Share Purchase
Agreement” means the share purchase agreement dated as of June 1, 2018 among 2119694 Alberta Inc., as seller, the Borrower, as purchaser, and KamCan Products Inc., 2011296 Alberta Inc. and Sprout Technologies Inc., as guarantors,
pursuant to which the Borrower will repurchase 6,134,391 class “A” common voting shares in the capital of the Borrower from 2119694 Alberta Inc. 

“Share Purchase Documents” means, collectively, the Share Purchase Agreement, the Share Purchase Guarantee and the Share Purchase Promissory
Note and “Share Purchase Document” means any one of those. 

  
 20 

 “Share Purchase Guarantee” means the subordinated guarantee dated as of June 22, 2018
granted by KamCan Products Inc., 2011296 Alberta Inc. and Sprout Technologies Inc. in favour of 2119694 Alberta Inc. pursuant to the Share Purchase Agreement. 

“Share Purchase Promissory Note” means the subordinated unsecured promissory note dated as of November 9, 2018 in the amount of
$6,931,429.20 granted by the Borrower in favour of 2119694 Alberta Inc. pursuant to the Share Purchase Agreement and any other promissory note issued pursuant to the Share Purchase Agreement from time to time. 

“Solvent” and “Solvency” means, with respect to any Person on a particular date, that on such date (a) the Person is
able to meet his obligations as they generally become due; (b) the Person has not ceased paying its current obligations in the ordinary course of business as they generally become due; and (c) the aggregate of the Person’s property
is, at a fair valuation, sufficient, or, if disposed of at a fairly conducted sale under legal process, would be sufficient to enable payment of all its obligations, due and accruing due. For the purposes of clause (c), the amount of the Contingent
Obligations at any time shall be computed as the amount which, in light of all the facts and circumstances existing at the time, represents the amount which can reasonably be expected to become an actual or matured liability. 

“Subsidiary” means, at any time, as to any Person, any other Person, if at such time the first mentioned Person owns, directly or indirectly,
securities or other ownership interests in such other Person, having ordinary voting power to elect a majority of the board of directors or persons performing similar functions for such other Person, and shall include any other Person in like
relationship to a Subsidiary of such first mentioned Person. 
 “Taxes” means all present or future taxes, levies, imposts, duties,
deductions, withholdings, assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“UK Acquisition” means the acquisition by the Borrower of all of the Equity Interests in Bridge Farms pursuant to the UK Purchase Agreement.

 “UK Purchase Agreement” means the sale and purchase agreement dated on or about February 22, 2019 between Sundial UK Limited as
buyer, the Borrower as guarantor and Northedge Capital Fund II LP, Northedge Capital Coinvestment II LP, David Ball, Andrew Higginson and others as sellers, relating to the UK Acquisition. 

“Withholding Party” means any Obligor or the Lender, as applicable. 

“Working Capital Ratio” means the ratio (expressed as a decimal number rounded to two decimal places) determined as: 

 

	 	(a)	 all amounts that would, in conformity with GAAP, be classified on a consolidated balance sheet of the Borrower
as current assets of the Borrower and its Subsidiaries on such date; divided by 

  
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	 	(b)	 all (i) Debt of the Borrower and its Subsidiaries that, by its terms, is payable on demand or matures
within one year after the date of determination (excluding (A) any Debt renewable or extendible, at the option of the Borrower or its Subsidiary, to a date more than one year from such date or arising under a revolving credit or similar agreement
that obligates the lender or lenders to extend credit during a period of more than one year from such date, (B) the Credit Facility and (C) any current Debt that is subordinate to the Credit Facility), and (ii) other items that, in
accordance with GAAP, would be classified on the balance sheet of such Person as current liabilities of such Person, in each case calculated on a consolidated basis. 

 

	1.02	 Headings 

The division of this Agreement into Articles and Sections and the insertion of headings are for convenience of reference only and shall not
affect the construction or interpretation of this Agreement. 
  

	1.03	 Permitted Encumbrances 

The inclusion of reference to Permitted Encumbrances in any Loan Document is not intended to subordinate and shall not subordinate, and shall
not be interpreted as subordinating, any Encumbrance created by any of the Security to any Permitted Encumbrance. 
  

	1.04	 Currency 

Unless otherwise specified in this Agreement, all references to dollar amounts (without further description) will mean Canadian Dollars. 

 

	1.05	 Paramountcy 

In the event of a conflict in or between the provisions of this Agreement and the provisions of any Schedule annexed hereto or any of the other
Loan Documents then, notwithstanding anything contained in such Schedule or other Loan Document, the provisions of this Agreement will prevail and the provisions of such Schedule or other Loan Document will be deemed to be amended to the extent
necessary to eliminate such conflict. In particular, if any act or omission of an Obligor is expressly permitted under this Agreement but is expressly prohibited under any Schedule annexed hereto or another Loan Document, such act or omission shall
be permitted. If any act or omission is expressly prohibited under any Schedule annexed hereto or a Loan Document (other than this Agreement), but this Agreement does not expressly permit such act or omission, or if any act is expressly required to
be performed under such Schedule or such Loan Document but this Agreement does not expressly relieve the applicable Obligor from such performance, such circumstance shall not constitute a conflict in or between the provisions of this Agreement and
the provisions of such Schedule or Loan Document. 
  

	1.06	 Non-Business Days 

Unless otherwise expressly provided in this Agreement, whenever any payment is stated to be due on a day other than a Business Day, the payment
will be made on the immediately following Business Day. Unless otherwise expressly provided in this Agreement, whenever any action to be taken is stated or scheduled to be required to be taken on, or (except with respect to the calculation of
interest or fees) any period of time is stated or scheduled to commence or terminate on, a day other than a Business Day, the action will be taken or the period of time will commence or terminate, as the case may be, on the immediately following
Business Day. 

  
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	1.07	 Interest Payments; Calculations and Other Payments 

(1) All interest payments to be made under this Agreement will be paid without allowance or deduction for deemed
re-investment or otherwise, both before and after maturity and before and after default and/or judgment, if any, until payment of the amount on which such interest is accruing, and interest will accrue on
overdue interest, if any. 
 (2) Unless otherwise stated, wherever in this Agreement reference is made to a rate of interest or rate of fees
“per annum” or a similar expression is used, such interest or fees will be calculated on the basis of a calendar year of 365 days or 366 days, as the case may be, and using the nominal rate method of calculation, and will not be calculated
using the effective rate method of calculation or on any other basis that gives effect to the principle of deemed re-investment of interest. 

(3) For the purposes of the Interest Act (Canada) and disclosure under such Act, whenever interest to be paid under this Agreement is to
be calculated on the basis of a year of 365 days or any other period of time that is less than a calendar year, the yearly rate of interest to which the rate determined pursuant to such calculation is equivalent is the rate so determined multiplied
by the actual number of days in the calendar year in which the same is to be ascertained and divided by either 365 or such other period of time, as the case may be. 

(4) Unless expressly agreed otherwise under this Agreement, the Lender shall calculate all fees and interest, including without limitation
standby fees and agency fees. For greater certainty all such calculations shall be without duplication of any day such that neither interest nor fees shall be calculated in respect of the same day twice. 

(5) Notwithstanding anything herein to the contrary, in no event shall any interest rate or rates referred to herein (together with other fees
payable hereunder which are construed by a court of competent jurisdiction to be interest or in the nature of interest) exceed the maximum interest rate permitted by Applicable Law. If such maximum interest rate would be exceeded by the terms
hereof, the rates of interest payable hereunder shall be reduced to the extent necessary so that such rates (together with other fees which are construed by a court of competent jurisdiction to be interest or in the nature of interest) equal the
maximum interest rate permitted by Applicable Law, and any overpayment of interest received by the Lender theretofore shall be applied, forthwith after determination of such overpayment, to pay all then outstanding interest, and thereafter to pay
outstanding principal, as if the same were a prepayment of principal and treated accordingly hereunder. 
  

	1.08	 Determinations By the Borrower 

All provisions contained herein requiring the Borrower to make a determination or assessment of any event or circumstance or other matter to
the best of a Responsible Officer of the Borrower’s knowledge shall be deemed to require the Borrower to make all inquiries and investigations as may be reasonable in the circumstances before making any such determination or assessment. 

  
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	1.09	 Terms Generally 

The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require,
any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The word
“will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise: (a) any definition of or reference to any agreement, instrument or other document herein (including
this Agreement) shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented, restated or otherwise modified (subject to any restrictions on such amendments, supplements, restatements or
modifications set forth herein); (b) any reference herein to any Person shall be construed to include such Person’s successors and permitted assigns; (c) the words “herein”, “hereof” and “hereunder”, and words
of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof; (d) unless otherwise expressly stated, all references in this Agreement to Articles, Sections, Exhibits and Schedules
shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement; (e) any reference to any law or regulation herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time; and (f) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,
securities, accounts and contract rights. 
  

	1.10	 Schedules 

The following are the Schedules annexed hereto and incorporated by reference and deemed to be part hereof: 

 

					
	Schedule A	  	–  	  	Notice of Request for Advance
	Schedule B	  	–  	  	Repayment Notice
	Schedule C	  	–  	  	Compliance Certificate
	Schedule D	  	–  	  	Obligors
	Schedule E	  	–  	  	Solvency Certificate
	Schedule 8.01(10)	  	–  	  	Litigation
	Schedule 8.01(12)	  	–  	  	Real Property
	Schedule 8.01(13)	  	–  	  	Insurance
	Schedule 8.01(17)	  	–  	  	Corporate Structure
	Schedule 8.01(18)	  	–  	  	Jurisdictions and Addresses
	Schedule 8.01(19)	  	–  	  	Intellectual Property
	Schedule 8.01(23)	  	–  	  	Environmental
	Schedule 8.01(27)	  	–  	  	Non-arm’s Length Transactions
	Schedule 9.04(20)	  	–  	  	Hedge Arrangements

  
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 ARTICLE 2 - THE CREDIT FACILITIES 

 

	2.01	 Credit Facility 

Subject to the terms and conditions of this Agreement, the Lender establishes in favour of the Borrower a
non-revolving term loan facility in an amount up to $30,000,000. 
  

	2.02	 Purpose of Credit Facility 

Advances under the Credit Facility shall only be used to provide interim financing for the following purposes: 

 

	 	(a)	 up to the Canadian dollar equivalent of £5,000,000 to pay the
non-refundable deposit under the UK Purchase Agreement due February 15, 2019; 

  

	 	(b)	 for repayment of Auxly Facility including principal, accrued interest and fees, on the Closing Date;

  

	 	(c)	 up to £2,000,000 for the Bridge Boiler Loan; and 

 

	 	(d)	 to fund working capital, operating costs and capital expenditures for the Canadian Operations.

  

	2.03	 Nature of the Credit Facility 

The Credit Facility is a fixed rate non-revolving facility and, accordingly, no amounts repaid under
the Credit Facility may be reborrowed and the limits of the Credit Facility will be automatically and permanently reduced by the amount of any such repayment so made. Any amount not borrowed by the Borrower on the initial Drawdown under the Credit
Facility shall be cancelled and may not thereafter be borrowed by the Borrower. 
  

	2.04	 Irrevocability 

A Drawdown Notice given by the Borrower hereunder shall be irrevocable and shall oblige the Borrower to take the action contemplated on the
date specified therein. 
 ARTICLE 3 - DISBURSEMENT CONDITIONS 

 

	3.01	 Conditions Precedent to the Initial Advance 

The obligations of the Lender under this Agreement are subject to and conditional upon the following conditions precedent being satisfied as of
the date of the first Drawdown: 
  

	 	(a)	 this Agreement and all other Loan Documents shall have been executed and delivered by all parties hereto;

  
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	 	(b)	 duly executed copies of the Security Documents, including the Intercreditor Agreement in form and on terms
satisfactory to the Lender, shall have been delivered to the Lender (along with certificates, if any, representing all shares or other securities pledged, together with related stock powers duly executed in blank or duly executed pledge
endorsements, as applicable except to the extent that such certificates and stock powers have been delivered to and are held by ATB) and such financing statements or other registrations of the Security, or notice thereof, shall have been filed
and/or registered, entered or recorded in all offices of public record necessary or desirable in the opinion of the Lender to preserve or protect the charges and security interests created thereby, in each case, that are required to be delivered on
the Closing Date; 

  

	 	(c)	 the Lender shall have received a Drawdown Notice; 

 

	 	(d)	 the Lender shall have received certified copies of the Organizational Documents of each Obligor, the
resolutions authorizing the execution, delivery and performance of each Obligor’s respective obligations under the Loan Documents to which they are a party and the transactions contemplated herein, and the incumbency of the officers and
directors of the Obligors; 

  

	 	(e)	 the Lender shall have received a solvency certificate, substantially in the form set forth in Schedule E from
the chief financial officer of the Borrower; 

  

	 	(f)	 the Lender shall have received a certified true copy of all Material Licences and licenses from any other
applicable authority (or application made), for each of the Borrower or Guarantor’s facilities together with all amendments thereto and all material correspondence received from Governmental Authorities including any communications on non-compliance items; 

  

	 	(g)	 the Lender shall have received a certified true copy of all Material Contracts, capital leases and agreements
establishing credit facilities including the ATB Agreement, the FCC Agreement, the Royalty Agreement, the Share Purchase Promissory Note and all amendments to each of them and related documentation including intercreditor agreements;

  

	 	(h)	 the Lender shall have received a currently dated legal opinion from the Borrower’s Counsel along with the
opinions of legal counsel reasonably satisfactory to Lender’s Counsel with respect to all Obligors with respect to, among other things, corporate matters, searches, security filings and enforceability of all Loan Documents, all in form and
substance satisfactory to the Lender and Lender’s Counsel, and confirming that the Obligors are qualified to carry on their businesses in the jurisdictions in which their business is conducted and their activities will not contravene any
Applicable Laws therein; 

  

	 	(i)	 the Lender shall have received a legal opinion or other evidence satisfactory to the Lender that (i) the
principal amount owing on the Share Purchase Promissory Note is not payable until after the Senior Lenders (as defined thereunder) have been repaid (including no repayment of principal thereunder prior to repayment in full of the Credit Facility)
and (ii) the Lender will be a Senior Lender as defined in the Share Purchase Promissory Note; 

  
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	 	(j)	 the Debt under the Auxly Agreement shall have been repaid in full or the Lender shall have been irrevocably
directed to deduct such amounts from the Advance under the Credit Facility, and the credit facilities under the Auxly Agreement shall be cancelled and all security released and discharged; 

 

	 	(k)	 the Lender shall have received certificates of status, good standing or the local equivalent (if any), as
applicable, in respect of each Obligor; 

  

	 	(l)	 the Lender shall have received certified copies of all policies evidencing insurance (or a binder, commitment
or certificates signed by the insurer or a broker authorized to bind the insurer), in form and substance reasonably satisfactory to the Lender, which include the Lender as loss payee and mortgagee under policy/ies covering physical loss or damage to
the Property of the Obligors (which policy/ies shall be subject to a standard mortgage clause or lender loss payable clause as approved by the Insurance Bureau of Canada) and with the Lender as additional insured under liability insurance policies
covering such Property (for clarity, excluding professional liability insurance, automobile liability insurance and workers compensation insurance) and with the property damage policies and liability policies (for clarity, excluding professional
liability insurance, automobile liability insurance and workers compensation insurance) including a waiver of subrogation of the insurers’ rights of subrogation in favour of the Lender; 

 

	 	(m)	 all fees payable to the Lender on the Closing Date and reasonable and documented
out-of-pocket expenses (including legal fees) required to be paid on the Closing Date pursuant to this Agreement, in each case to the extent invoiced at least two
Business Days prior to the Closing Date, shall have been paid, or the Lender shall have been irrevocably directed to deduct such amounts from the Advance under the Credit Facility; 

 

	 	(n)	 the Lender shall have received, at least three (3) Business Days prior to the Closing Date, all
documentation and other information required by regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including without limitation the Proceeds of Crime (Money Laundering) and
Terrorist Financing Act (Canada), that has been reasonably requested by the Lender at least five (5) Business Days prior to the Closing Date; 

  

	 	(o)	 the Lender shall have received a certified copy of the UK Purchase Agreement, any amendments or waivers
thereto, and all material documentation relating to the UK Purchase Agreement together with evidence of the consent of ATB to the acquisition thereunder and any amendments or waivers to the UK Purchase Agreement shall be satisfactory to the Lender
acting reasonably; 

  

	 	(p)	 the representations and warranties in Section 8.01 shall be true and correct in all material respects and
the Lender shall have received a certificate of an officer of the Borrower to that effect; 

  

	 	(q)	 no Default or Event of Default shall have occurred and be continuing; and 

  
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	 	(r)	 the Lender shall have received a copy of the most recent compliance certificate and calculation of financial
covenants delivered by the Borrower to ATB under the ATB Agreement. 

 provided that all documents delivered pursuant to this
Section 3.01 shall be in full force and effect and in form and substance satisfactory to the Lender acting reasonably. 
  

	3.02	 Waiver 

The conditions set forth in Section 3.01 are inserted for the sole benefit of the Lender and may be waived by the Lender, in whole or in
part (with or without terms or conditions), in respect of any Drawdown without prejudicing the right of the Lender at any time to assert such conditions in respect of any subsequent Drawdown. 

ARTICLE 4 - EVIDENCE OF DRAWDOWNS 
  

	4.01	 Account of Record 

The Lender shall open and maintain books of account evidencing all Advances and all other amounts owing by the Borrower to the Lender
hereunder. The Lender shall enter in the foregoing accounts details of all amounts from time to time owing, paid or repaid by the Borrower hereunder. Absent manifest error, the information entered in the foregoing accounts shall constitute prima
facie evidence of the obligations of the Borrower to the Lender hereunder with respect to all Advances and all other amounts owing by the Borrower to the Lender hereunder. After a request by the Borrower, the Lender shall promptly advise the
Borrower of such entries made in the Lender’s books of account. 
 ARTICLE 5 - PAYMENTS OF INTEREST 

 

	5.01	 Interest on Advances 

The Borrower shall pay interest, at the Interest Rate, on the Advance on the Maturity Date for the period from and including the Drawdown Date
to and including the Maturity Date. Interest shall be calculated on the principal amount of the Advance outstanding during such period on the basis of the actual number of days elapsed in a year of 365 days or 366 days, as the case may be. 

 

	5.02	 No Set-Off, Deduction etc. 

Except with respect to Taxes (which are governed by Section 13.01(4)), all payments (whether interest or otherwise) to be made by the
Borrower or any other party pursuant to this Agreement are to be made in freely transferable, immediately available funds and without set-off or deduction of any kind whatsoever (whether for deemed re-investment or otherwise) except to the extent required by Applicable Law, and if any such set-off or deduction is so required and is made, the Borrower or any other party
will, as a separate and independent obligation to the Lender, be obligated to immediately pay to the Lender all such additional amounts as may be required to fully indemnify and save harmless the Lender from such
set-off or deduction and will result in the effective receipt by the Lender of all the amounts otherwise payable to it in accordance with the terms of this Agreement. 

  
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	5.03	 Lender’s Fees 

The Borrower shall pay to the Lender such fees in such amounts, and on the terms and conditions, set out in any fee letter between the Borrower
and the Lender, as such letter may be amended, supplemented or replaced from time to time, or as otherwise agreed to in writing from time to time by the Lender (or any of its Affiliates) and the Borrower. For greater certainty, each such fee letter
and all such written arrangements between the Lender and the Borrower relating to the payment of fees in respect to this Agreement shall constitute Loan Documents, shall survive the execution of this Agreement and shall in all respects remain
operative and binding on the Borrower. 
  

	5.04	 Overdue Principal and Interest 

(1) If all or part of any Advance shall not be paid when due (whether at its stated maturity, by acceleration or otherwise), such overdue
amount shall bear interest (as well after as before judgment), payable on demand, at a rate per annum equal to the Default Rate from the date of such non-payment until paid in full. 

(2) If all or part of any interest in respect of any Advance shall not be paid when due (whether at its stated maturity, by acceleration or
otherwise), such overdue interest shall, to the extent permitted by law, bear interest (as well after as before judgment), payable on demand, at a rate per annum equal to the Interest Rate from the date of such
non-payment until paid in full. 
  

	5.05	 Interest on Other Amounts 

If any amount owed by the Borrower to the Lender under any of the Loan Documents is not paid when due and payable, and there is no other
provision in any Loan Document specifying the interest payable on such overdue amount, such overdue amount shall bear interest (as well after as before judgment), payable on demand at a rate per annum equal at all times to the Default Rate, from the
date of non-payment until paid in full. 
 ARTICLE 6 - REPAYMENT 

 

	6.01	 Mandatory Repayment of Principal 

(1) Subject to the terms hereof, the Borrower shall repay all Obligations that it owes in connection with the Credit Facility, including the
outstanding principal amount of all Advances thereunder together with all accrued interest, fees and other amounts then unpaid by it with respect to such Advances in full on the Maturity Date, and the Credit Facility shall be automatically
terminated on the Maturity Date. 
  

	6.02	 Voluntary Repayments and Reductions 

(1) Subject to the Lender receiving a Repayment Notice which shall be given not less than three (3) Business Days prior to the proposed
repayment date, the Borrower may, from time to time, repay Advances outstanding under the Credit Facility without premium, penalty or bonus provided that each such repayment shall be in a minimum aggregate amount of $100,000 and in whole multiples
of $10,000. 

  
 29 

 (2) All repayments of the Credit Facility may not be reborrowed. Each such repayment shall
permanently reduce the Credit Facility by the amount of such repayments. 
  

	6.03	 Mandatory Prepayments from Issuances of Equity Interests or Debt 

(1) If the Borrower receives Net Proceeds from the issue of Pre-IPO Private Placement Security, or from
the issue of any other Equity Interests or Debt Securities, then such Net Proceeds shall be paid by the Borrower to the Lender in permanent repayment of outstanding Obligations under the Credit Facility, within one (1) Business Day after the
closing of the transaction under which issue of Equity Interests or Debt Securities occurs, other than the following Net Proceeds: 
  

	 	(a)	 proceeds from the exercise of the Sundial April Warrants; 

 

	 	(b)	 advances of undrawn amounts under the ATB Agreement provided that the aggregate principal amount outstanding
thereunder after giving effect to such advances shall not exceed $49,000,000; and 

  

	 	(c)	 proceeds of up to $5,000,000 from the issue of any Equity Interests, other than the Pre-IPO Private Placement Security, including pursuant to the CEO Transaction, which proceeds are used (i) to fund the Canadian Operations, (ii) to fund the Bridge Farms Boiler Loan, and (iii) to
fund, in an aggregate amount not exceeding $500,000, business activities of the Borrower and its Subsidiaries other than the Canadian Operations. 

(2) Each repayment of the Credit Facility under this Section 6.03 shall permanently reduce the Credit Facility by the amounts of such
repayments and may not be reborrowed. 
 ARTICLE 7 - PLACE AND APPLICATION OF PAYMENTS 

 

	7.01	 Place of Payment of Principal, Interest and Fees 

(1) The Borrower undertakes at all times when any Advance is outstanding or any other amount is owed by it under any Loan Document to maintain
at the Lender’s Payment Branch an account in Cdn. Dollars, which the Lender shall be entitled to debit with such amounts as are from time to time required to be paid by the Borrower under the Loan Documents, as and when such amounts are due.
Without in any way limiting the rights of the Lender pursuant to the foregoing, unless otherwise specifically agreed between the Borrower and the Lender, the Borrower hereby directs the Lender to debit the aforesaid accounts with such amounts as are
from time to time required to be paid by the Borrower pursuant to this Agreement. 
 (2) All payments by the Borrower under any Loan
Document, unless otherwise expressly provided in such Loan Document, shall be made to the Lender at the Lender’s Payment Branch, or at such other location as may be agreed upon by the Lender and the Borrower not later than 12:00 noon (Toronto
time) for value on the date when due, and shall be made in immediately available funds without set-off or counterclaim. 

  
 30 

 ARTICLE 8 - REPRESENTATIONS AND WARRANTIES 

 

	8.01	 Representations and Warranties 

The Borrower represents and warrants to the Lender and to the Lender and acknowledges and confirms that the Lender is relying upon such
representations and warranties: 
 (1) Existence and Qualification. Each Obligor: (a) has been duly incorporated, established,
formed, amalgamated, merged or continued, as the case may be, and is validly subsisting and in good standing as a corporation, company, limited partnership or partnership, under the laws of its jurisdiction of formation, amalgamation, merger or
continuance, as the case may be (or in the case of Obligors which are not corporations or companies, has been duly created or established as a partnership or other applicable entity and validly exists under and is in good standing under the laws of
the jurisdiction in which it has been created or established); (a) is duly qualified to carry on its business in each jurisdiction in which it carries on business; and (c) has all required Material Licences. 

(2) Power and Authority. Each Obligor has the corporate, company or partnership power and authority, as the case may be: (a) to
enter into, and to exercise its rights and perform its obligations under, the Loan Documents to which it is a party and all other instruments and agreements delivered by it pursuant to any of the Loan Documents; (b) to have implemented and
completed and to enter into, and to exercise, its rights and perform its obligations under all instruments and agreements delivered by it in connection with the UK Acquisition; and (c) to own its Property and carry on its business as currently
conducted and as currently proposed to be conducted by it. 
 (3) Execution, Delivery, Performance and Enforceability of Documents.
The execution, delivery and performance of each of the Loan Documents to which any Obligor is a party, and every other instrument or agreement delivered by an Obligor pursuant to any Loan Document, has been duly authorized by all corporate, company
or partnership actions required, and each of such documents has been duly executed and delivered by it. Each Loan Document to which any Obligor is a party constitutes the legal, valid and binding obligations of such Obligor, enforceable against such
Obligor in accordance with their respective terms (except, in any case, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and by principles of
equity). 
 (4) Loan Documents Comply with Applicable Laws, Organizational Documents, Contractual Obligations and Material Licences.
None of the execution or delivery of, the consummation of the transactions contemplated in, or the compliance with the terms, conditions and provisions of any of, the Loan Documents or any of the agreements or documents delivered in connection with
the UK Acquisition by any Obligor party thereto conflicts with or will conflict with, or results or will result in any breach of, or constitutes a default under or contravention of, (a) any Requirement of Law where such breach, default or
contravention could reasonably be expected to have a Material Adverse Effect, (b) such Obligor’s Organizational Documents, (c) any Material Contract or Material Licence, or (d) results or will result in the creation or imposition
of any Encumbrance upon any of its Property, except for Permitted Encumbrances. 

  
 31 

 (5) Consent Respecting Loan Documents. Each Obligor has obtained, made or taken all
consents, approvals, authorizations, declarations, registrations, filings, notices and other actions whatsoever required (including from any Governmental Authority), (except for registrations or filings which may be required in respect of the
Security Documents) to enable it to execute and deliver each of the Loan Documents to which it is a party and to consummate the transactions contemplated in the Loan Documents. 

(6) Security Documents. (a) The Security Documents to be delivered on the Closing Date create valid and enforceable Encumbrances
upon the Collateral described therein in favour of the Lender on the terms set out therein, subject only to the terms of this Agreement, the Intercreditor Agreement and to Permitted Encumbrances; and (b) the Security Documents to be delivered
on the Closing Date have been registered, filed or recorded in all places where registration, filing or recording is necessary or desirable to perfect and protect the charges and security interests created therein. 

(7) Approvals, Licences and Authorizations. Each Obligor has all licences, permits, concessions, certificates, registrations, franchises
and other authorizations and approvals of all Governmental Authorities that are required or necessary for the Obligors to carry on the Business, except where the failure to have same would not reasonably be expected to have a Material Adverse
Effect. Each Material Licence is valid, subsisting and in good standing and the Obligors are not in default or breach (except for immaterial breaches that do not allow for a right of termination of such licence) of any Material Licence and, to the
knowledge of a Responsible Officer of the Borrower, no proceeding is pending or has been threatened in writing by the applicable Government Authority to revoke or limit any Material Licence. 

(8) Taxes. Each Obligor has duly and timely filed all material tax returns required to be filed by it and has paid or made adequate
provision for the payment of all material Taxes levied on its Property or income which are showing therein as due and payable, including interest and penalties, or has accrued such amounts in its financial statements for the payment of such Taxes
except for Taxes which are not delinquent or if delinquent are being contested, and, except as disclosed to the Lender in writing there is no material action, suit, proceeding, investigation, audit or claim now pending, or to its knowledge,
threatened by any Governmental Authority regarding any Taxes. 
 (9) Judgments, Etc. As of the Closing Date, no Obligor is subject to
any material judgment, order, writ, injunction, decree or award or any restriction, rule or regulation which has not been stayed or of which enforcement has not been suspended or which prohibits or delays the completion of the UK Acquisition. 

(10) Absence of Litigation. As of the Closing Date, there are no actions, suits or proceedings pending or judgments existing or, to the
best of the knowledge of a Responsible Officer of the Borrower, threatened against or affecting any Obligor or its properties which could reasonably be expected to be determined adversely to any Obligor and, if so determined, to result in a Material
Adverse Effect. All actions, suits or proceeds pending or unsatisfied judgments existing as of the Closing Date that could reasonably be expected to result in a potential liability to any Obligor in excess of $250,000 are set forth in Schedule
8.01(10) attached hereto. 

  
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 (11) Title to Assets. As of the Closing Date, each Obligor has good title to its
assets, free and clear of Encumbrances except Permitted Encumbrances and no Person has any agreement or right to acquire an interest in a material portion of such assets other than in the ordinary course of its business. 

(12) Description of Real Property. Schedule 8.01(12) contains a description as of the Closing Date of (a) all real property owned
by each Obligor (including municipal addresses, which municipal addresses are included for reference only), legal description (to the extent available), the name of the Obligor that owns such property), and (b) all real property leased by each
Obligor (including municipal addresses (which municipal addresses are included for reference only), the name of the Obligor that leases such property and the name of the landlord). 

(13) Insurance. As of the Closing Date, each Obligor or the Borrower on behalf of itself and all other Obligor maintains insurance which
is in full force and effect with responsible and reputable insurance companies or associations in such amounts and covering such risks as would be prudent for companies engaged in similar businesses and owning similar properties in the same general
areas in which the Borrower and its Subsidiaries operate and including crop insurance and export insurance. Schedule 8.01(13) lists all existing insurance policies maintained by the Obligors as of the Closing Date 

(14) Labour Relations. Except as to matters that could not reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect, as of the Closing Date, (a) no Obligor is aware that it is engaged in any unfair labour practice and there is no unfair labour practice complaint or complaint of employment discrimination pending against any Obligor or to the
knowledge of a Responsible Officer of any Obligor, threatened against any Obligor, before any Governmental Authority; (b) no material grievance or arbitration arising out of or under any collective bargaining agreement is pending against any
Obligor or to the knowledge of a Responsible Officer of any Obligor, threatened against any Obligor; and (c) no strike, significant labour dispute, slowdown or material work stoppage which in the opinion of management or to the knowledge of a
Responsible Officer of any Obligor, threatened against any Obligor. 
 (15) Compliance with Laws and Material Licences. Each
Obligor is in compliance with Applicable Laws, Applicable Orders and Material Licences, except in each case to the extent that failure to comply therewith would not reasonably be expected to have a Material Adverse Effect. 

(16) No Default or Event of Default. No Default or Event of Default has occurred and is continuing. 

(17) Corporate Structure. The corporate structure of the Borrower and its Subsidiaries is, as at the Closing Date and after giving
effect to the UK Acquisition, as set out in Schedule 8.01(17) and sets forth a complete and accurate corporate chart and list of all Obligors, showing as of the date hereof, (as to each such Obligor) the jurisdiction of its incorporation or
organization, the number of outstanding shares of each class of Equity Interests thereof, the owner of such Equity Interests, the location of its corporate records and its registered and chief executive offices, the provinces/states where it
conducts business and the location of any of its places of business and tangible property (if different). 

  
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 (18) Jurisdictions. Schedule 8.01(18) identifies in respect of the Borrower and each
of its Subsidiaries as of the Closing Date, the jurisdiction of incorporation or formation, the full address (including postal code) of any Obligor’s chief executive office and all places of business and, if different, the address at which the
books and records of any Obligor are located, the address at which senior management of any Obligor are located and conduct their deliberations and make their decisions with respect to the business of any Obligor and the address from which the
invoices and accounts of any Obligor are issued. 
 (19) Intellectual Property. As of the Closing Date, each Obligor has rights
sufficient for it to use all the Intellectual Property reasonably necessary for the conduct of its business, as currently conducted, except for Intellectual Property the absence of which could not reasonably be expected to have a Material Adverse
Effect. All material patents, trade-marks, copyrights or industrial designs which have been either registered and such registration is not abandoned or expired or in respect of which a pending registration application has been filed by any Obligor
with the Canadian Intellectual Property Office, the United States Patent and Trademark Office, the United States Copyright Office and any other Governmental Authority, as at the Closing Date, are listed on Schedule 8.01(19). As of the Closing Date,
no Obligor has received any notice of any claim of infringement or similar claim or proceeding relating to any of its Intellectual Property which, if determined against such Obligor, could reasonably be expected to have a Material Adverse Effect.

 (20) Material Contracts. No Obligor, or to the knowledge of a Responsible Officer of the Borrower, any other party to any Material
Contract, is in material default with respect thereto. 
 (21) Financial Information. All of the quarterly and annual financial
statements which have been furnished to the Lender, or any of them, in connection with this Agreement are complete in all material respects and such financial statements fairly present in all material respects the results of operations and
consolidated financial position of the Borrower, as of the dates referred to therein and have been prepared in accordance with GAAP (except that such quarterly financial statements do not include notes and the
year-end adjustments that are reflected in the corresponding audit annual financial statements). All other material financial information (including, without limitation, budgets, projections, and EBITDA
calculations but excluding information of a general economic or industry-specific nature) provided to the Lender by or on behalf of the Borrower have been prepared in good faith and are based on assumptions and expectations that the Borrower
believed to be reasonable at the time so prepared; provided, however, that the Lender acknowledges that there is no assurance that actual results will correspond to any financial projections or forecasts (it being acknowledged by the Lender that the
projections are not guarantees of future performance and actual results may vary materially from such projections). 
 (22) No Material
Adverse Effect. Since the date of the Borrower’s most recent annual audited financial statements provided to the Lender pursuant to this Agreement, there has been no condition (financial or otherwise), event or change in its business,
liabilities, operations, results of operations or assets which constitutes or has, or could reasonably be expected to constitute, or cause, a Material Adverse Effect. 

  
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 (23) Environmental. Except as to matters that could not reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect, as of the Closing Date: (a) no Obligor is subject to any civil or criminal proceeding or investigation relating to Requirements of Environmental Law and no Obligor is aware of
any threatened proceeding or investigation involving any Obligor relating to Requirements of Environmental Laws that could reasonably be expected to have a Material Adverse Effect; (b) each Obligor has all permits, licences, registrations and
other authorizations required by the Requirements of Environmental Laws for the operation of its business and the properties which it owns, leases or otherwise occupies except for those permits, licences, registrations and other authorizations the
failure to have would not reasonably be expected to have a Material Adverse Effect; (c) each Obligor operates its business and its properties (whether owned, leased or otherwise occupied) in compliance with all applicable Requirements of
Environmental Laws except where the failure to do so would not reasonably be expected to have a Material Adverse Effect; (d) except as disclosed in Schedule 8.01(23), to the knowledge of a Responsible Officer of the Borrower, as of the Closing
Date, none of the Obligors has caused or permitted a release of Hazardous Materials at, on or under any property owned or leased by any Obligor, except for any release that would not reasonably be expected to have a Material Adverse Effect; and
(e) to the knowledge of a Responsible Officer of the Borrower as of the Closing Date and other than as disclosed in Schedule 8.01(23), no real property or groundwater in, on or under any property owned or leased by any Obligor is contaminated
by any Hazardous Material, in each case, that could reasonably be expected to have a Material Adverse Effect. 
 (24) Pension Plans.
No Obligor maintains, administers, contributes to or has any liability in respect of a Defined Benefit Pension Plan or any other Pension Plan. 

(25) Solvency. Immediately after giving effect to the UK Acquisition, and before and after giving effect to each Advance, the Obligors,
on a consolidated basis, are Solvent. No transfer of property has been or will be made by any Obligor and no obligation has been or will be incurred by any Obligor in connection with the transactions contemplated by this Agreement or the other Loan
Documents, with the intent to prefer, hinder, delay, or defraud either present or future creditors of any Obligor. 
 (26) Debt. As of
the Closing Date, there exists no Debt of any Obligor that is not Permitted Debt other than Debt under the Auxly Facility to be repaid on the Closing Date. 

(27) Non-Arm’s Length Transaction. All agreements, arrangements or
transactions between any Obligor on the one hand, and any Affiliate of or other Person not dealing at Arm’s Length with such Obligor (other than another Obligor and other than ordinary course arrangements with any employee, management or
director of any Obligor and fees contemplated by the definition of “Permitted Distributions”), on the other hand, in existence as of the Closing Date are set forth on Schedule8.01(27). 

  
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 (28) Anti-Corruption Laws. No part of the proceeds of the Advances shall be used,
directly or indirectly: (a) to offer or give anything of value to any official or employee of any foreign government department or agency or instrumentality or government-owned entity, to any foreign political party or party official or
political candidate or to any official or employee of a public international organization, or to anyone else acting in an official capacity (collectively, “Foreign Official”), in order to obtain, retain or direct business by
(i) influencing any act or decision of such Foreign Official in his official capacity, (ii) inducing such Foreign Official to do or omit to do any act in violation of the lawful duty of such Foreign Official, (iii) securing any
improper advantage or (iv) inducing such Foreign Official to use his influence with a foreign government or instrumentality to affect or influence any act or decision of such government or instrumentality; (b) to violate the Corruption
of Foreign Public Officials Act (Canada); or (c) to violate or to cause the Lender to violate any other anti-corruption law applicable to the Lender (all laws referred to in clauses (b) and (c) being “Anti-Corruption
Laws”). 
 (29) Sanctions Laws. No Obligor and to the knowledge of a Responsible Officer of the Borrower, no Affiliate of an
Obligor acting or benefiting in any direct capacity in connection with the Advances is any of the following (a “Restricted Person”): (a) a Person that is listed in the annex to, or is otherwise subject to the provisions of,
Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the “Executive Order”); (b) a Person that is named as a “specially designated national and blocked person” on the most current list
published by OFAC at its official website or any replacement website or other replacement official publication of such list or similarly named by any similar foreign Governmental Authority; (c) a Person that is owned 50 percent or more by
any Person described in Section 8.01(29)(b); or (d) any other Person with which any Obligor is prohibited from dealing under any Sanctions laws applicable to such Obligor. Further, none of the proceeds from the Advances shall be used to
finance or facilitate, directly or indirectly, any transaction with, investment in, or any dealing for the benefit of, any Restricted Person or in violation of any Sanctions. 

(30) Anti-Money Laundering Laws. The business and operations of the Borrower and each of its Subsidiaries is in compliance, in all
material respects, with the applicable provisions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and other anti-money laundering, anti-terrorist financing, and government sanction laws, regulations and
guidelines applicable to the Borrower and each of its Subsidiaries, whether within Canada or elsewhere and no part of the proceeds of the Advances shall be used, directly or indirectly by the Borrower or any Subsidiary in contravention of any such
laws, regulations and guidelines. 
 (31) Jurisdictions of Business. No Obligor carries on any business in any jurisdiction other than
a Qualified Jurisdiction. 
 (32) Compliance with Cannabis Laws. Each Obligor is in compliance with all Cannabis Laws applicable to it
and its Business, except where any failure to do so is capable of being remedied, and is being diligently remedied, within the time periods permitted by the applicable Governmental Authority and specifically, but without limitation, none of
(i) the purchase from any Obligor, or import from Canada, of cannabis by a person resident (or otherwise located) in a Qualified Jurisdiction; or (ii) the sale to a Person resident (or otherwise located) in a Qualified Jurisdiction, or
export to such Qualified Jurisdiction, of cannabis by any Obligor, will violate or result in a breach of any applicable Cannabis Laws. 

  
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 (33) Business Authorizations. 

 

	 	(a)	 All Business Authorizations: 

 

	 	(i)	 have been duly obtained, taken, given or made; 

 

	 	(ii)	 are valid and in full force and effect; and 

 

	 	(iii)	 are free from conditions or requirements that have not been met or complied with where the failure to so
satisfy may allow for the material modification or revocation thereof, except where such failure would be capable of being remedied within the time period typically permitted by the applicable Governmental Authority; 

 

	 	(b)	 each Obligor is in compliance in all material respects with all Business Authorizations held by, or in favour
of, such Obligor; 

  

	 	(c)	 no Obligor has received any notice from any Governmental Authority regarding any actual or alleged violation
of, or any failure on the part of such Obligor to comply with, any term or requirement of any Business Authorization that has not been remedied and is not capable of being remedied; 

 

	 	(d)	 no Obligor has received any written notice from any Governmental Authority of any revocation or intention to
revoke any interest of any Obligor in any Business Authorization that not been remedied and is not capable of being remedied; 

  

	 	(e)	 no Obligor knows of any reason why any Business Authorization should be suspended, cancelled or revoked or of
any factor that might in any way prejudice the continuation or renewal of any Business Authorization; and 

  

	 	(f)	 all taxes, assessments, maintenance fees and other amounts required to maintain the Business Authorizations
have been paid in full, except where the failure to do so would not reasonably be expected to result in a Material Adverse Effect; 

(34) Borrower not Non-Resident of Canada: The Borrower is not a
non-resident of Canada for the purposes of the Income Tax Act (Canada). 
 (35) No
Omissions. The Borrower has not withheld from the Lender any material information relating to its financial condition or business which would reasonably be expected to be material to a prospective lender contemplating a loan of the size and
nature contemplated in this Agreement. All factual information that has been made or will be made available to the Lender by the Borrower or on its behalf is, or will be, when furnished, complete and correct in all material respects and does not, or
will not, when furnished, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statement contained therein not materially misleading in light of the circumstances under which such statements
are made. 
 (36) Capital Expenditures. The Borrower has made Capital Expenditures of not less than $114,000,000 on its properties and
buildings. 

  
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 (37) Financial Ratio. As at the Closing Date, the Working Capital Ratio is at least
1.15:1.00. 
 (38) Share Purchase Promissory Note. (i) The principal amount owing on the Share Purchase Promissory Note is
not payable until after the Senior Lenders (as defined thereunder) have been repaid (including no repayment of principal thereunder prior to repayment in full of the Credit Facility), (ii) the Lender will be a Senior Lender as defined in the Share
Purchase Promissory Note, and (iii) interest is payable on the principal amount owing on the Share Purchase Promissory Note at the rate of 1% per month. 

(39) Compliance with ATB Agreement. As at the Closing Date, there is no default or event of default under the ATB Agreement and
the Borrower is in compliance with the financial covenants under the ATB Agreement. 
  

	8.02	 Survival and Repetition of Representations and Warranties 

The representations and warranties set out in Section 8.01 will be deemed to be repeated by the Borrower as of the date of each request
for new Advance by the Borrower (and for certainty such representations shall be made with respect to the date specified in such representation) except to the extent that on or prior to such date: (a) the Borrower has advised the Lender in
writing of a variation in any such representation or warranty; and (b) if such variation in the opinion of the Lender, acting reasonably, is material to the Property, liabilities, affairs, business, operations, prospects or condition (financial
or otherwise) of the Obligors considered as a whole or could have, or be reasonably likely to result in, a Material Adverse Effect, the Lender has approved such variation. 

ARTICLE 9 - COVENANTS 
  

	9.01	 Positive Covenants 

So long as this Agreement is in force and except as otherwise permitted by the prior written consent of the Lender, the Borrower shall and
shall cause each other Obligor to: 
 (1) Timely Payment. Make payment of the Obligations required to be paid by it hereunder on the
dates and times specified herein or under any other agreement between the Lender and the Borrower. 
 (2) Conduct of Business, Maintenance
of Existence, Compliance with Laws. 
  

	 	(a)	 Carry on and conduct its business and operations in a proper, efficient and businesslike manner, in accordance
with good business practice; maintain and preserve all of its Property that is necessary for the conduct of its business in good working order and condition, ordinary wear and tear excepted, in accordance with prudent industry standards;

  

	 	(b)	 take all reasonable action to maintain all rights, title, privileges and franchises necessary or desirable in
the normal conduct of its business (except where the failure to do so shall not reasonably be expected to have a Material Adverse Effect) and to comply in all material respects with all Material Contracts and Requirements of Law (except where the
failure to do so shall not reasonably be expected to have a Material Adverse Effect) and all Material Licences; 

  
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	 	(c)	 maintain the employment of any person whose retention is required as a term of an Obligor’s license under
the Cannabis Act (Canada) and the regulations promulgated thereunder including a control person, master grower, responsible person, head of security and quality assurance person; 

 

	 	(d)	 maintain its valid existence as a corporation except as may otherwise be permitted pursuant to
Section 9.04(2); 

  

	 	(e)	 maintain all licenses and authorizations required from regulatory or governmental authorities or agencies to
permit it to carry on its business, including, without limitation, the Material Licences and any other licenses, certificates, permits and consents for the purposes of conducting the Business, as well as for the purposes of protection of the
environment; 

  

	 	(f)	 maintain all of its property in good repair and working condition and carry on and continuously conduct its
Business only in Qualifying Jurisdictions and in the normal course; 

  

	 	(g)	 carry on its Business as currently being carried on by it on the date hereof and operate its Business in a
reasonable manner, except to the extent any failure to do so would not reasonably be expected to have a Material Adverse Effect; 

  

	 	(h)	 maintain and defend title to all of its property and assets, subject to the Permitted Encumbrances;

  

	 	(i)	 in the case of the Borrower, promptly procure a license to sell cannabis and, once obtained, will maintain such
license; 

  

	 	(j)	 promptly notify the Lender upon its request of: 

 

	 	(i)	 any outstanding swap, hedging, interest rate, currency, foreign exchange or commodity contract or agreement;

  

	 	(ii)	 further environmental information regarding the Obligors; or 

 

	 	(iii)	 the location of all leased property of any Obligor where the Business is carried out; 

 

	 	(k)	 with respect to Business Authorizations: 

 

	 	(i)	 deliver to the Lender a copy of each Business Authorization; 

 

	 	(ii)	 the Borrower shall be and remain the sole legal and beneficial owner off all Business Authorizations;

  
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	 	(iii)	 comply in all material respects with the terms and conditions of each Business Authorization and to do all
material things required of a holder thereof by applicable laws; and 

  

	 	(iv)	 timely pay all taxes, assessments, maintenance fees and other amounts required to be paid to maintain the
Business Authorizations; 

  

	 	(l)	 manage and operate its Business: 

 

	 	(i)	 solely within a Qualified Jurisdiction; 

 

	 	(ii)	 with production of cannabis in facilities properly licenced by the applicable governing body in a Qualified
Jurisdiction, in accordance with all applicable laws; and 

  

	 	(iii)	 with no storefront or retail operations unless and until it is lawful to do so and the Borrower is operating
such operations in accordance with all Applicable Laws; 

  

	 	(m)	 upon entering into any new Material Contract, provide all necessary assignments (as a second priority
Encumbrance) and acknowledgments from the counterparties to each new Material Contract assigned by the Borrower, as deemed necessary by the Lender, acting reasonably, pursuant to an assignment agreement satisfactory to the Lender;

  

	 	(n)	 promptly notify the Lender in writing of any event which constitutes, or which with notice, lapse of time or
both, would constitute a breach of any provision hereof or any Loan Document contemplated herein; 

  

	 	(o)	 ensure the accuracy of all information delivered to Lender; and 

 

	 	(p)	 ensure that each of the Loan Documents to which such Obligor is a party remains legal, valid, binding and
enforceable and work with the Lender to ensure perfected security over such Obligor’s assets in any applicable jurisdiction (subject to applicable law affecting the rights of creditors generally and the rules of equity of general application),
to the Lender’s satisfaction, acting in a commercially reasonable manner in the circumstances. 

 (3) Further
Assurances. Provide the Lender with such other documents, opinions, consents, acknowledgements and agreements requested by the Lender, acting reasonably as are within its control and reasonably necessary to implement this Agreement or the other
Loan Documents from time to time. 
 (4) Books and Records and Access to Information. Maintain all financial records in a manner
sufficient to permit the preparation of consolidated financial statements in accordance with GAAP. The Borrower shall, and shall cause each Obligor to, permit any representatives designated by the Lender, upon reasonable prior notice and during
normal business hours, but not more than once in any year so long as no Default has occurred and is continuing, to visit and inspect its 

  
 40 

 
Property, to examine and make extracts from its financial books, accounts and records including but not limited to accounts and records stored in computer data banks and computer software
systems, and to discuss its affairs, finances and condition with its officers and, following the occurrence and during the continuance of an Event of Default (in the presence of such of its representatives as it may designate), its auditors. Subject
to applicable privacy legislation, confidentiality obligations in contracts and to such requirements in order to preserve solicitor-client privilege, the Borrower shall promptly provide the Lender with all information reasonably requested by the
Lender from time to time concerning the financial condition, business and Property of the Borrower and the Obligors. 
 (5) Taxes. Pay
or discharge or cause to be paid or discharged, before the same shall become delinquent all Taxes imposed upon it or upon its income or profits or in respect of its business or Property (other than Taxes, the amounts of which are immaterial and do
not constitute an Encumbrance on an Obligor’s Property that ranks pari passu or prior to the Encumbrances granted in favour of the Lender) and file all tax returns and notices in respect thereof; provided, however, that it shall not be
required to pay or discharge or to cause to be paid or discharged any such amount so long as the validity or amount thereof shall be contested in good faith by appropriate proceedings and an adequate reserve in accordance with GAAP has been
established in its books and records. 
 (6) Use of Credit Facility. Use the proceeds of the Credit Facility as contemplated by
Section 2.02. 
 (7) Issue of Pre-IPO Private Placement Security. Complete the issue of
the Sundial Pre-IPO Private Placement Security prior to the Maturity Date, on market terms, in a principal amount sufficient to provide Net Proceeds in an amount not less than all amounts outstanding under the
Credit Facility, including accrued and unpaid interest. 
 (8) Insurance. Maintain or cause to be maintained with reputable insurers,
coverage of such types as is customary for and would be maintained by a corporation with an established reputation engaged in the same or similar business in similar locations (except where the failure to so maintain such insurance coverage would
not reasonably be expected to have a Material Adverse Effect), including crop insurance and export insurance, and provide to the Lender, upon request and not more frequently than on an annual basis, evidence of such coverage. The Borrower shall, on
an annual basis prior to the expiry or replacement of any insurance policy, at the Lender’s request, send copies of all renewed or replacement policies to the Lender. The Lender shall be indicated, as applicable, as additional insured and loss
payee in respect of property insurance and additional insured in respect of liability insurance, and all property insurance policies shall contain such standard mortgage clauses as the Lender shall reasonably require for the Lender’s
protection. 
 (9) Environmental Compliance. Operate its business in compliance in all respects with Requirements of Environmental
Laws and operate all Property owned, leased or otherwise used by it such that no material obligation, including a clean-up or remedial obligation, will arise under any Requirements of Environmental Law,
except, in each case, where failure to do so would not reasonably be expected to have a Material Adverse Effect. The Borrower shall promptly notify the Lender upon: (a) learning of the existence of any Hazardous Material that could reasonably
be expected to result in a liability generated or used by any Obligor or located on, above or below 

  
 41 

 
the surface of any land which it owns, leases, operates, occupies, uses or controls (except those being stored, used or otherwise handled in compliance with Requirements of Environmental Law), or
contained in the soil, surface, water or groundwater on or beneath such land; (b) the occurrence of any release, spill, leak, emission, discharge, leaching, dumping or disposal of Hazardous Materials that has occurred on or from such land that
could reasonably be expected to result in a liability; or (c) learning of the existence of any other breach or potential breach of the Requirements of Environmental Law, that in any case of the foregoing (a), (b) or (c) could reasonably be
expected to result in a Material Adverse Effect. 
 (10) Additional Guarantors. Cause each direct or indirect Subsidiary formed or
otherwise acquired after the Closing Date (including pursuant to an Acquisition), within sixty (60) days of the date of its formation or acquisition, as applicable, to have its Equity Interests pledged in favour of the Lender and to become a
Guarantor and to deliver a guarantee guaranteeing the due payment and performance to the Lender of all present and future Obligations to the Lender or any one or more of them under the Loan Documents and all Security required by the Lender, acting
reasonably, certificates, legal opinions and other related deliveries contemplated under Article 10 as if such Subsidiary had been a Guarantor at the Closing Date. 

(11) Security. With respect to the Security: 
  

	 	(a)	 provide to the Lender the Security required from time to time pursuant to Article 10 in accordance with the
provisions of such Article, accompanied by customary supporting resolutions, certificates and opinions in form and substance satisfactory to the Lender, acting reasonably; 

 

	 	(b)	 do, execute and deliver all such things, documents, security, agreements and assurances as may from time to
time reasonably be requested by the Lender to ensure that the Lender holds at all times valid, enforceable, perfected first priority Encumbrances (subject only to Permitted Encumbrances) from the Obligors meeting the requirements of Article 10; and

  

	 	(c)	 use its commercially reasonable efforts to obtain consents to the assignment of receivables contemplated by
Section 10.01(1)(e) at the written request of the Lender. 

 (12) Maintenance of Property. Generally keep the
Property necessary in its business in good working order and condition, normal wear and tear excepted, and maintain all registered Intellectual Property necessary to carry on its business, except for the lapse or abandonment of such Intellectual
Property, or rights therein, in the reasonable business judgment of the applicable Obligor, except, in each case, where the failure to do so shall not reasonably be expected to have a Material Adverse Effect. 

(13) Pension Plans. Maintain any Pension Plan in compliance with Applicable Laws in all material respects. 

(14) Know Your Customer. Provide, and cause its Affiliates to provide, such documentation as reasonably requested by the Lender in order
to assist the Lender to comply with AML Legislation, and maintain and update information as reasonably requested by the Lender to satisfy related obligations, as they may change from time to time. 

  
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	9.02	 Financial Covenant 

So long as this Agreement is in force and except as otherwise permitted by the prior written consent of the Lender: 

 

	 	(a)	 Working Capital Ratio. The Borrower will ensure that the Working Capital Ratio, on a consolidated basis,
at all times, is not less than: 

  

	 	(i)	 for the period from the Closing Date to April 1, 2019: 1.15:1.00; and 

 

	 	(ii)	 on and after April 1, 2019: 1.25:1.00. 

Compliance with the Working Capital Ratio will be maintained at all times and detailed in the monthly Compliance Certificate required to be
delivered pursuant to Section 9.03(3)(b). 
  

	9.03	 Reporting Requirements 

The Borrower shall furnish to the Lender: 

(1) Annual Reports. As soon as available and in any event within ninety (90) days after the end of each of the Borrower’s
Fiscal Years, cause to be prepared and delivered to the Lender: (a) the annual audited consolidated financial statements of the Obligors including, in each case and without limitation, balance sheet, statement of income and statement of cash
flows for such Fiscal Year, commencing with the year ended December 31, 2018, prepared in accordance with GAAP and all reported on by the Auditor without a going concern qualification or exception as to the scope of the such audit (other than
any exception, qualification or paragraph that is expressly solely with respect to, or expressly resulting from (i) an upcoming maturity of any Debt occurring within one year from the time such opinion is delivered or (ii) any potential
inability to satisfy any financial maintenance covenant); (b) a comparison of the consolidated financial results to the previous Fiscal Year; and (c) a management discussion and analysis with respect to such consolidated financial results. 

(2) Quarterly Reports. As soon as available and in any event within sixty (60) days of the end of each Fiscal Quarter (including
the fourth Fiscal Quarter), cause to be prepared and delivered to the Lender as at the end of such Fiscal Quarter unaudited financial statements of the Obligors prepared on a consolidated basis including, in each case and without limitation, balance
sheet, statement of income, statement of cash flows, which shall be prepared in accordance with GAAP (subject to usual year-end adjustments and the absence of full note and deferred tax disclosure) together
with a comparison of such consolidated financial results to the same period in the previous Fiscal Year and together with management discussion and analysis with respect to such consolidated financial results. 

  
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 (3) Compliance Certificates. 

 

	 	(a)	 Together with the financial statements referred to in Sections 9.03(1) and 9.03(2), provide the Lender with a
Compliance Certificate, which shall set forth set forth the calculations of the financial covenants in Section 9.02 hereof. 

  

	 	(b)	 Monthly, within five (5) Business Days after the end of each calendar month, a certificate of a
Responsible Office confirming that the representations set forth in Sections 8.01(15), 8.01(31), 8.01(32) and 8.01(33) are true and correct and which shall set forth the calculations of the financial covenants in Section 9.02 hereof.

 (4) Notices regarding Governmental Authorities and Material Licences. 

 

	 	(a)	 Copies of all material correspondence and notices received by the Borrower or any other Obligor from any
Governmental Authority or stock exchange with respect to the licenses and permits required to conduct the Borrower and the Guarantors’ businesses, or any regulatory or other investigations into the Borrower and the Guarantors’ cannabis
business practices promptly upon receipt (and in any event within two (2) Business Days); 

  

	 	(b)	 Notice, promptly upon receipt (and in any event within two (2) Business Days), of any rejection notice for
new or renewal security clearance application for each director and officer of the Borrower and each Guarantor per the Access to Cannabis for Medical Purposes Regulations or subsequent Cannabis Act regulations; 

 

	 	(c)	 Notice, promptly upon receipt (and in any event within two (2) Business Days), of: (i) the results of
any facility audit by any Governmental Authority; and (ii) any warning document, letter or notice from any Governmental Authority that would reasonably be expected to have a negative or material impact on any license for cannabis held by the
Borrower or any other Obligor, together with the Borrower’s or other Obligor’s action plan with respect thereto; 

  

	 	(d)	 Notice, promptly upon receipt (and in any event within two (2) Business Days), of any amendments to any
Governmental Authority license (Health Canada or other authorities) held by the Borrower or a Guarantor. 

 (5) Notice
of Litigation. As soon as reasonably practicable, after a Responsible Officer or Key Employee of the Borrower obtains knowledge, notifies the Lender on becoming aware of the occurrence of any litigation, dispute, arbitration, proceeding or other
circumstance, the result of which would reasonably be expected to result in: (a) judgments or awards against it in excess of $250,000 individually or $500,000 in the aggregate; or (b) a Material Adverse Effect, and from time to time,
provide the Lender with all reasonable information requested by the Lender concerning the status of any such proceeding. 

  
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 (6) Other Notices. As soon as reasonably practicable, after a Responsible Officer of
the Borrower obtains knowledge, give notice to the Lender: 
  

	 	(a)	 any damage to or destruction of any property, real or personal, of any Obligor having a replacement cost in
excess of $250,000 or any insurance claims against any Obligor or any Obligor’s assets or properties; 

  

	 	(b)	 any threatened or pending litigation or governmental, regulatory or arbitration proceeding or labour
controversy or fine, penalty or other similar monetary obligation against or imposed upon the Borrower or any Subsidiary or any of their Property which could reasonably be expected to be determined adversely to the applicable Obligor and which, if
so determined, could reasonably be expected to have a Material Adverse Effect; 

  

	 	(c)	 the occurrence of any Pension Event that, individually or together with all other Pension Events that have
occurred, could reasonably be expected to have a Material Adverse Effect; 

  

	 	(d)	 the discovery of any contaminant or any spill, discharge or release of a contaminant into the environment from
or upon any property of a Obligor which would reasonably be expected to result in a Material Adverse Effect; 

  

	 	(e)	 any event which constitutes, or which with notice, lapse of time or both, would constitute a breach of any
Material Contract; 

  

	 	(f)	 any Encumbrance other than a Permitted Encumbrance; 

 

	 	(g)	 the occurrence of any Default or Event of Default; 

 

	 	(h)	 any change to the material terms, coverage or amounts of any insurance; 

 

	 	(i)	 any other matter, circumstance or event that has had or would reasonably be expected to have a Material Adverse
Effect; 

  

	 	(j)	 any Change of Control or any changes in Borrower’s organizational chart; and 

 

	 	(k)	 such other reports and financial and business information as the Lender may reasonably request.

  

	9.04	 Negative Covenants 

So long as this Agreement is in force and except as otherwise permitted by the prior written consent of the Lender, the Borrower shall not and
shall ensure that each Obligor shall not: 
 (1) Disposition of Property. Except for Permitted Dispositions, Dispose of, in one
transaction or a series of transactions, all or any part of its Property, whether now owned or hereafter acquired, or enter into any Sale and Lease-Back Transaction. 

  
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 (2) No Consolidation, Amalgamation, etc. Consolidate, amalgamate or merge with any
other Person, export a corporation into a jurisdiction outside of Canada, enter into any corporate reorganization or other transaction intended to liquidate, wind-up or dissolve itself, or permit any
liquidation, winding-up or dissolution (not otherwise constituting an Event of Default) unless prior written approval has been received from the Lender and such customary documentation as is required by
Lender’s Counsel, acting reasonably, is delivered concurrently with such transaction. Notwithstanding the foregoing, an Obligor may consolidate, amalgamate or merge with another Obligor, liquidate,
wind-up or dissolve itself into another Obligor as long as, to the extent that the Borrower is involved, the Borrower is the surviving entity and remains an entity constituted under the laws of Canada or a
Province or Territory thereof. For greater certainty, nothing in this Agreement prohibits, or shall be deemed to prohibit, an Obligor from completing a Qualified IPO. 

(3) No Change of Name. Change its name, adopt a French form of name or change its jurisdiction of incorporation or formation, its chief
executive office, principal place of business or location at which it keeps records in respect of accounts receivable, in each case without providing the Lender with five (5) days’ prior written notice thereof (or such shorter time period
in the Lender’s discretion) (or such shorter period of time as the Lender may agree). 
 (4) No Debt. Create, incur, assume or
permit any Debt to remain outstanding, other than Permitted Debt and Debt, the Net Proceeds of which are used to repay and permanently cancel the Credit Facility. 

(5) No Amendment of Debt Agreements. Amend, modify or terminate the ATB Agreement, the FCC Agreement, the Royalty Agreement or the Share
Purchase Promissory Note, other than amendments to extend the maturity date or reduce pricing thereof. 
 (6) No Amendment of AGLC Supply
Agreement or other Material Contracts. Amend or terminate the AGLC Supply Agreement or any other Material Agreement for the purchase of cannabis from the Obligors without the express written consent of the Lender, other than: (A) any
amendments or modifications to cure any defective provisions contained therein or to permit other minor deviations from the terms thereof or required to comply with applicable laws; and (B) those amendments, modifications, waivers or claims
that are immaterial and would not prejudice the interests of the Lender (as determined by the Lender), so long as a copy of any such amendment, modification or waiver is delivered to the Lender not less than ten (10) Business Days prior to the
execution thereof. 
 (7) No Investments. Make any Investments except, and provided that no Default or Event of Default has occurred
and is continuing: (a) Investments permitted in accordance with the provisions of Sections 9.04(10) and 9.04(14); (b) Permitted Intercompany Debt; and (c) Investments in Obligors. 

(8) No Distributions. Make any Distribution except Permitted Distributions, and, to the extent it is a Distribution, the CEO
Transaction. 
 (9) No Encumbrances. Create, incur, assume or permit to exist any Encumbrance upon any of its Property except
Permitted Encumbrances. 
 (10) No Acquisitions. Make any Acquisitions other than the UK Acquisition or make any payments or advances
under the UK Purchase Agreement other than deposits required to be made in the amount of £5,000,000 on or about February 15, 2019 and £2,500,000 on or about April 15, 2019. 

  
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 (11) No Capital Expenditures. Make any capital expenditures other than capital
expenditures satisfied out of the undrawn committed amount under the ATB Agreement (prior to exercise of any option to increase the committed amount of such facility), amounts available under the Credit Facility for capital expenditures in
accordance with Section 2.02(d), cash on hand (excluding any restricted cash required to be maintained in a cash collateral account pursuant to the terms of the ATB Agreement or any other restricted cash) and cash generated from operations
after payment of all scheduled interest, principal and fees on Debt, taxes and operating expenses to the extent permitted by Section 9.04(18). 

(12) No Change to Year End. Make any change to its Fiscal Year provided it may change its fiscal year end to December 31. 

(13) No Change to Business; Conduct of Business. Carry on any business other than the Business. Carry on the Business in the United
States of America or any jurisdiction other than in Qualified Jurisdictions and, in particular, without limitation, Obligors will not have any operations, sales or investments in the United States of America. In particular, the Borrower shall manage
and operate, and cause each other Obligor to manage and operate, its business: 
  

	 	(a)	 solely within Qualified Jurisdictions provided that it provides the Lender with copies the applicable federal
licensing documentation prior to possessing or selling any cannabis or related product in the applicable Qualified Jurisdiction, together with a satisfactory legal opinion from the Borrower’s counsel confirming the ability of the Borrower to do
so, provided that the Borrower or any other Obligor, may export cannabis to a Qualified Jurisdiction where the Lender has been previously provided with the applicable import and export permits; and 

 

	 	(b)	 with respect to the cultivation, the production and processing of cannabis and cannabis related products solely
in facilities licensed by Governmental Authorities in a Qualified Jurisdiction. 

 (14) No Share Issuance. Other
than the issue of Equity Interests by the Borrower (including pursuant to a Qualified IPO or the Pre-IPO Private Placement Security), issue any Equity Interests unless the Person to whom such Equity Interests
are issued is another Obligor and then only if the additional Equity Interests so issued are concurrently and validly pledged to the Lender under the Security and all resolutions (corporate, shareholder or otherwise) required by the Lender, acting
reasonably, in connection therewith are delivered to the Lender. 
 (15) Amendments to Organizational Documents. Subject to
Section 9.04(2) and Section 9.04(3) amend any of its Organizational Documents in a manner that would restrict its ability to borrow money, provide a guarantee or grant security over its Property. 

(16) Non-Arm’s Length Transaction. Effect any transaction with any Person (other than an
Obligor) not dealing at Arm’s Length with the transacting Obligor except a transaction conducted in the ordinary course of business and on terms and conditions not less favourable than could be obtained on an Arm’s Length basis and the
Royalty Agreement and the Share Purchase Documents. 

  
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 (17) No Financial Assistance. Provide any Financial Assistance to any Person,
including, for certainty and without limiting the generality of the foregoing, to any Affiliate or to Bridge Farms for the purchase of equipment, capital expenditures, working capital or any other purpose either prior to or after completion of the
UK Acquisition other than Financial Assistance pursuant to the CEO Transaction, existing employee loans provided by the Borrower to certain of its employees not to exceed $535,000 in the aggregate pursuant to the terms of the employment agreement
related thereto and the Bridge Farms Boiler Loan. 
 (18) Use of Funds from Operations. Not use funds from operations or the issue of
Equity Interests for any purpose other than (i) to fund the Canadian Operations, (ii) to pay interest dues and to repay amounts due under the FCC Agreement and the ATB Agreement, (iii) to prepay or repay amounts outstanding under the
Credit Facility, (iv) to fund the Bridge Farms Boiler Loan, (v) to make other Permitted Distributions, and (vi) to fund, in an aggregate amount not exceeding $500,000, business activities other than the Canadian Operations. 

(19) Auditor. Change its Auditor unless any replacement is a nationally recognized accounting firm. 

(20) Hedge Arrangements. Enter into any Hedge Arrangements except the Hedge Arrangements in place with ATB prior to the Closing Date and
set out in Schedule 9.04(20). 
 (21) Anti-Money Laundering and Anti-Terrorism Finance Laws; Foreign Corrupt Practices Act; Sanctions
Laws; Restricted Person. (a) Engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or otherwise violates any anti-terrorism law, anti-corruption law, anti-money laundering law
or Sanctions; (b) cause or permit any of the funds that are used to repay the Obligations to be derived from any unlawful activity with the result that the Lender, the Lender or any Obligor would be in violation of any Applicable Law or
Sanctions; or (c) use any part of the proceeds of the Advances, directly or indirectly, for any conduct that would violate any Sanctions or OFAC Sanctions Programs. 

(22) Defined Benefit Pension Plans. None of the Obligors shall, without the consent of the Lender, such consent not to be unreasonably
withheld or delayed, maintain, administer, contribute or have any liability in respect of any Defined Benefit Pension Plan. 
 ARTICLE
10 - SECURITY 
  

	10.01	 Form of Security 

(1) Security Delivered on the Closing Date. On the Closing Date, as continuing collateral security for the payment and satisfaction of
all Obligations to the Lender, each of the Obligors shall deliver or cause to be delivered to the Lender the following Security, all of which shall be in form and substance satisfactory to the Lender, acting reasonably: 

 

	 	(a)	 a first priority assignment of all Net Proceeds of the issue by any Obligor of the Pre-IPO Private Placement Security, any Equity Interests (other than an issue of Equity Interests to the Borrower by another Obligor, an issue of Equity Interests by the Borrower pursuant to the exercise of the
Sundial April Warrants, or up to $5,000,000 in connection with any other issue of Equity Interests) or Debt Securities; 

  
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	 	(b)	 a general security agreement from the Borrower and each Guarantor in favour of the Lender constituting a
second-priority Encumbrance (subject only to a first-priority Encumbrance in favour of ATB and any other Permitted Encumbrance) on all of its present and future Property including, in the case of the Borrower, all Equity Interests held by the
Borrower in any of its Subsidiaries but excluding cannabis inventory (but including any receivables from the sale thereof); 

  

	 	(c)	 collateral mortgage from the Borrower and each applicable Guarantor providing a second position security
interest in favour of Lender over all real property located in Alberta and registered in the name of the Borrower or such Guarantor, subject to Permitted Encumbrances; 

 

	 	(d)	 assignment of Material Contracts from the Borrower and each Guarantor providing a security interest in favour
of Lender over all interests of the Borrower or such Guarantor in the Material Contracts; 

  

	 	(e)	 assignment of receivables from the AGLC Supply Agreement and each other agreement for the sale by the Borrower
or the Guarantors of cannabis, and, at the written request of the Lender, a consent to such assignment from each counterparty to each applicable Material Contract; provided that such consent may be delivered following the Closing Date in accordance
with Section 9.01(11)(c); 

  

	 	(f)	 unlimited joint and several guarantees and postponements of claim from each Guarantor; 

 

	 	(g)	 evidence of insurance naming Lender as loss payee and additional insured, in such amounts and with such
deductibles as are customary in the case of owners of businesses similar to the business currently carried on by the Borrower and each Guarantor, including but not limited to: 

 

	 	(i)	 builders all risk insurance and adequate property, liability and business insurance; and 

 

	 	(ii)	 crop insurance and export insurance. 

No such insurance will be cancellable except with thirty (30) days’ prior written notice to the Lender and will otherwise be on terms
and conditions and provided by insurers acceptable to the Lender. The Lender reserves the right to have any insurance reviewed by an independent insurance advisor at cost to Borrower; 

 

	 	(h)	 such material intellectual property security and related registrations thereto, determined at the sole
discretion of the Lender; 

  

	 	(i)	 a blocked accounts agreement among the Borrower, ATB and BMO relating to deposits by the Borrower of Net
Proceeds from the issue of Pre-IPO Private Placement Security or from the issue of any other Equity Interests or Debt Securities; and 

 

  
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	 	(j)	 the Intercreditor Agreement. 

 

	10.02	 Additional Guarantors 

Any Person that may, from time to time, become a Guarantor in accordance with this Agreement shall execute and deliver each of the applicable
Security documents, as determined by the Lender, described in Sections 10.01(1) as though such Person had become a Guarantor at the time of consummation of the Acquisition. 
  

	10.03	 After Acquired Property and Further Assurances 

Each Obligor shall, from time to time, at the reasonable request of the Lender, execute and deliver all such further deeds or other instruments
of conveyance, assignment, transfer, mortgage, pledge or charge in connection with any of its Property, whether now existing or acquired by any Obligor after the date hereof and intended to be subject to the security interests created hereby
including any insurance thereon. 
  

	10.04	 Application of Proceeds of Security 

The Lender acknowledges that the Lender holds the Security to secure all of the Obligations and upon the occurrence of an acceleration of
Obligations under Section 11.02, shall distribute the proceeds of realisation in accordance with Section 11.08. 
  

	10.05	 Security Charging Real Property 

Notwithstanding anything to the contrary contained in any Loan Document, to the extent that the charges and security interests created by the
Security charge real property or any interest therein such charges and security interests on such real property shall secure interest after the occurrence of an Event of Default which is continuing at the same rates as those in effect prior to such
occurrence. 
 ARTICLE 11 - DEFAULT 
  

	11.01	 Events of Default 

The occurrence of any one or more of the following events (each such event being herein referred to as an “Event of Default”)
shall constitute a default under this Agreement: 
  

	 	(a)	 if the Borrower fails to pay any amount of principal of or interest on any Advance when due;

  

	 	(b)	 if the Borrower fails to pay any fees or other Obligations under the Loan Documents when due and payable and
such non-payment continues for a period of ten (10) Business Days; 

  
 50 

	 	(c)	 if any Obligor fails to pay any amount due under any Hedge Arrangement when due and payable and such non-payment continues for a period of five (5) Business Days; 

  

	 	(d)	 if the Borrower fails to observe or perform any of the covenants in Section 9.02 or Section 9.04
(other than Section 9.04(9)); 

  

	 	(e)	 if the Borrower fails to observe or perform any of the covenants in Section 9.04(9) and the Borrower shall
fail to remedy such default within five (5) Business Days from the date of incurrence of such Encumbrance; 

  

	 	(f)	 if the Borrower or any Obligor neglects to observe or perform any covenant or obligation contained in this
Agreement or any other Loan Document (other than a covenant or condition whose breach or default in performance is specifically dealt with elsewhere in this Section 11.01) and the Borrower shall fail to remedy such default within thirty
(30) days from the date of notification from the Lender of such non-compliance; 

  

	 	(g)	 if any representation or warranty made by any Obligor in this Agreement, any Loan Document or in any
certificate or other document at any time delivered hereunder to the Lender shall prove to have been incorrect in any material respect on and as of the date thereof and the Borrower shall fail to remedy such default within thirty (30) days of non-compliance; 

  

	 	(h)	 if (i) the Borrower or any Obligor defaults in the observance or performance of any agreement or condition
in relation to any Debt under the ATB Agreement or the FCC Agreement or contained in any instrument or agreement evidencing, securing or relating thereto and such default is not waived or cured within any applicable cure or grace period; or
(ii) an “event of default” occurs under the ATB Agreement or the FCC Agreement; or (iii) any other event shall occur or condition exist, the effect of which default or other condition is to cause, or to permit the holder of such
Debt to cause, such Debt to become due prior to its stated maturity date; 

  

	 	(i)	 if any Obligor: (i) fails to make any payment when such payment is due and payable to any Person in
relation to any Debt (other than Permitted Intercompany Debt or Debt under the ATB Agreement or the FCC Agreement) which in the aggregate principal amount then outstanding is in excess of $250,000 and such payment is not made within any applicable
cure or grace period; (ii) defaults in the observance or performance of any other agreement or condition in relation to any such Debt (other than Permitted Intercompany Debt or Debt under the ATB Agreement or the FCC Agreement ) to any Person
which in the aggregate principal amount then outstanding is in excess of $250,000 or contained in any instrument or agreement evidencing, securing or relating thereto and such default is not waived or cured within any applicable cure or grace
period; or (iii) any other event shall occur or condition exist, the effect of which default or other condition is to cause, or to permit the holder of such Debt (other than Permitted Intercompany Debt or Debt under the ATB Agreement or the FCC
Agreement ) to cause, such Debt which in the aggregate principal amount then outstanding is in excess of $250,000 to become due prior to its stated maturity date; 

  
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	 	(j)	 this Agreement, any other Loan Document or any material obligation or other provision hereof or thereof at any
time for any reason (other than pursuant to its terms and conditions) terminates or ceases to be in full force and effect and a legally valid, binding and enforceable obligation of any Obligor, is declared to be void or voidable or is repudiated, or
the validity, binding effect, legality or enforceability hereof or thereof is at any time contested by any Obligor, or any Obligor denies that it has any or any further liability or obligation hereunder or thereunder or any action or proceeding is
commenced to enjoin or restrain the performance or observance by any Obligor of any material terms hereof or thereof or to question the validity or enforceability hereof or thereof, or at any time it is unlawful or impossible for any Obligor to
perform any of its material obligations hereunder or thereunder; 

  

	 	(k)	 any of the Loan Documents or any material provision of any of them becomes unenforceable, unlawful or is
changed in a manner which is adverse to the Lender by virtue of legislation or by a court, statutory board or commission, and if any Obligor does not, within ten (10) Business Days of receipt of notice of such Loan Document or material
provision becoming unenforceable, unlawful or being changed and being provided with any required new agreement or amendment for execution, replace such Loan Document with a new agreement that is in form and substance satisfactory to the Lender
acting reasonably or amend such Loan Document to the satisfaction of the Lender acting reasonably; 

  

	 	(l)	 if a decree or order of a court of competent jurisdiction is entered adjudging an Obligor a bankrupt or
insolvent or approving a petition seeking the winding-up of an Obligor under the Companies’ Creditors Arrangement Act (Canada), the Bankruptcy and Insolvency Act (Canada) or
the Winding-Up and Restructuring Act (Canada) or any other bankruptcy, insolvency or analogous laws or issuing sequestration or process of execution against any substantial part of the assets of an
Obligor or ordering the winding up or liquidation of its affairs; 

  

	 	(m)	 if any Obligor admits in writing its inability to pay its debts generally, becomes insolvent, makes any
assignment in bankruptcy or makes any other similar assignment for the benefit of creditors, makes any proposal under the Bankruptcy and Insolvency Act (Canada) or any comparable law, seeks relief under the Companies’
Creditors Arrangement Act (Canada), the Winding-Up and Restructuring Act (Canada) or any other bankruptcy, insolvency or analogous law, is adjudged bankrupt, files a petition or proposal to take
advantage of any act of insolvency, consents to or acquiesces in the appointment of a trustee, receiver, receiver and manager, interim receiver, custodian, sequestrator or other Person with similar powers of itself or of all or any substantial
portion of its assets, or files a petition or otherwise commences any proceeding seeking any reorganization, arrangement, composition or readjustment under any applicable bankruptcy, insolvency, moratorium, reorganization or other similar law
affecting creditors’ rights or consents to, or acquiesces in, the filing of such a petition; 

  
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	 	(n)	 if any proceeding or filing shall be instituted or made against any Obligor seeking to have an order for relief
entered against such Obligor as debtor or to adjudicate it bankrupt or insolvent, or seeking liquidation, winding-up, reorganization, arrangement, adjustment or composition under any law relating to
bankruptcy, insolvency, reorganization or relief or debtors (including, without limitation, the Bankruptcy and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada) and the Winding-Up and Restructuring Act (Canada) or seeking appointment of a receiver, trustee, custodian or other similar official for such Obligor or for any substantial part of its properties or assets unless the
same is being contested actively and diligently in good faith by appropriate and timely proceedings and is dismissed, vacated or permanently stayed within sixty (60) days of institution; 

 

	 	(o)	 if an Encumbrancer takes possession by appointment of a receiver, receiver and manager, or otherwise of any
material portion of the Property of any Obligor; 

  

	 	(p)	 if an execution, writ of seizure and sale, sequestration or decree for the payment of money due shall have been
obtained or entered against any Obligor in an amount in excess of $1,000,000 (individually or in the aggregate for all Obligors) and such execution, writ of seizure and sale, sequestration or decree shall not have been and remain vacated, satisfied,
discharged or pending appeal within the applicable appeal period stayed within thirty (30) days and in any event at least five (5) days prior to the date on which such execution, writ of seizure and sale, sequestration or decree can be
acted on; 

  

	 	(q)	 if a final judgement not covered by insurance (exclusive of any deductible) shall have been obtained or entered
against any Obligor in an amount in excess of $1,000,000 (individually or in the aggregate for all Obligors) and such judgement shall not have been and remain vacated, satisfied, discharged or pending appeal within the applicable appeal period
stayed within thirty (30) days and in any event at least five (5) days prior to the date on which such judgment can be acted on; 

  

	 	(r)	 if any of the Security (except by reason of lapse of time or solely due to action or inaction by the Lender)
shall cease to be a valid and perfected first priority security interest over Property with a value in excess of $500,000 (subject only to Permitted Encumbrances) and the Borrower shall have failed to remedy such default within ten
(10) Business Days of receipt of notice thereof from the Lender, except to the extent that any such loss of perfection or priority results from the failure of the Lender to maintain possession of certificates representing securities pledged
under the Loan Documents or otherwise take any action within its control (including the filing of financing change statements to renew any financing statement filed under applicable personal property security laws) and in the case of any mortgage,
except to the extent such failure is covered by a valid lender’s title insurance policy and the related insurer shall not have denied its liability thereunder; 

  
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	 	(s)	 if any Material Licence necessary for the Obligors to carry on the Business in all material respects ceases to
be valid, subsisting and in good standing or if any of the licences, permits or approvals granted by any Governmental Authority or and material to the business of Borrower or a Guarantor (if any) is withdrawn, cancelled, suspended or adversely
amended if such withdrawal, cancellation, suspension or amendment would reasonably be expected to result in a Material Adverse Effect; 

  

	 	(t)	 if Borrower defaults under a Material Contract, which default would reasonably be expected to result in a
Material Adverse Effect and such default will continue unrestricted for more than fifteen (15) Business Days; 

  

	 	(u)	 if the Borrower or any other Obligor ceases or threatens to cease to carry on in the ordinary course their
business or a substantial part thereof, except as a result of a reorganization permitted by the Lender or as permitted in Section 9.04(2); 

  

	 	(v)	 if a Change of Control shall occur; 

 

	 	(w)	 if a Pension Event shall have occurred that when taken either alone or together with all other Pension Events,
could reasonably be expected to result in a Material Adverse Effect; or 

  

	 	(x)	 if any event or circumstance occurs which has or would reasonably be expected to have a Material Adverse
Effect, and, if capable of a remedy, such remedy does not occur within sixty (60) Business Days from the date of written notice by the Lender to the Borrower, as determined by the Lender in their sole discretion, acting reasonably.

  

	11.02	 Acceleration and Termination of Rights 

If any Event of Default shall occur and be continuing, all Obligations under the Loan Documents shall, at the option of the Lender, become
immediately due and payable, all without notice, presentment, protest, demand, notice of dishonour or any other demand or notice whatsoever, all of which are hereby expressly waived by each Obligor; provided, if any Event of Default described in
Section 11.01(l), 11.01(m) or 11.01(n) with respect to the Borrower shall occur, the Credit Facility (if not theretofore terminated) shall automatically terminate and the outstanding principal amount of all Advances and all other Obligations
shall automatically be and become immediately due and payable. In such event, the Lender may exercise any right or recourse and/or proceed by any action, suit, remedy or proceeding against any Obligor authorized or permitted by law for the recovery
of all the Obligations and proceed to exercise any and all rights hereunder and under the Security and no such remedy for the enforcement of the rights of the Lender shall be exclusive of or dependent on any other remedy but any one or more of such
remedies may from time to time be exercised independently or in combination. 
  

	11.03	 Remedies Cumulative and Waivers 

For greater certainty, it is expressly understood and agreed that the respective rights and remedies of the Lender hereunder or under any other
Loan Document or instrument executed pursuant to this Agreement are cumulative and are in addition to and not in substitution for any rights or remedies provided by law or by equity; and any single or partial exercise by the Lender

  
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of any right or remedy for a default or breach of any term, covenant, condition or agreement contained in this Agreement or other document or instrument executed pursuant to this Agreement shall
not be deemed to be a waiver of or to alter, affect or prejudice any other right or remedy or other rights or remedies to which the Lender may be lawfully entitled for such default or breach. Any waiver by the Lender of the strict observance,
performance or compliance with any term, covenant, condition or other matter contained herein and any indulgence granted, either expressly or by course of conduct, by the Lender shall be effective only in the specific instance and for the purpose
for which it was given and shall be deemed not to be a waiver of any rights and remedies of the Lender under this Agreement or any other Loan Document or instrument executed pursuant to this Agreement as a result of any other default or breach
hereunder or thereunder. 
  

	11.04	 Saving 

The Lender shall not be under any obligation to the Borrower or any other Person to realize any Collateral or enforce the Security or any part
thereof or to allow any of the Collateral to be sold, dealt with or otherwise disposed of. The Lender shall not be responsible or liable to the Obligors or any other Person for any loss or damage upon the realization or enforcement of, the failure
to realize or enforce the Collateral or any part thereof or the failure to allow any of the Collateral to be sold, dealt with or otherwise disposed of or for any act or omission on their respective parts or on the part of any director, officer,
agent, servant or adviser in connection with any of the foregoing, except that the Lender may be responsible or liable for any loss or damage arising from the wilful misconduct or negligence of that Lender. 

 

	11.05	 Perform Obligations 

If an Event of Default has occurred and is continuing and if the Borrower has failed to perform any of its covenants or agreements in the Loan
Documents, the Lender, may, but shall be under no obligation to, instruct the Lender to perform any such covenants or agreements in any manner deemed fit by the Lender without thereby waiving any rights to enforce the Loan Documents. The reasonable
expenses (including any legal costs) paid by the Lender in respect of the foregoing shall be an Obligation and shall be secured by the Security. 
  

	11.06	 Third Parties 

No Person dealing with the Lender or any agent of the Lender shall be required to inquire whether the Security has become enforceable, or
whether the powers which the Lender is purporting to exercise have been exercisable, or whether any Obligations remain outstanding upon the security thereof, or as to the necessity or expediency of the stipulations and conditions subject to which
any sale shall be made, or otherwise as to the propriety or regularity of any sale or other disposition or any other dealing with the Collateral charged by such Security or any part thereof. 

 

	11.07	 Set-Off or Compensation 

If an Event of Default has occurred and is continuing, the Lender and each of its Affiliates is hereby authorized at any time and from time to
time to set off and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by the Lender or any such Affiliate to or
for the credit or the account of any Obligor against any and all of the obligations 

  
 55 

 
of the Borrower now or hereafter existing under this Agreement or any other Loan Document to the Lender, irrespective of whether or not the Lender has made any demand under this Agreement or any
other Loan Document and although such obligations of the Obligor may be contingent or unmatured or are owed to a branch or office of the Lender different from the branch or office holding such deposit or obligated on such indebtedness. The rights of
the Lender and its Affiliates under this Section are in addition to other rights and remedies (including other rights of setoff, consolidation of accounts and bankers’ lien) that the Lender or its Affiliates may have. The Lender agrees to
promptly notify the Borrower after any such setoff and application, but the failure to give such notice shall not affect the validity of such setoff and application. 
  

	11.08	 Application of Payments 

Notwithstanding any other provision of this Agreement but subject to the provisions of the Intercreditor Agreement, the proceeds of realization
of the Security or any portion thereof shall be distributed in the following order: 
  

	 	(a)	 first, in payment of all reasonable and documented costs and expenses incurred by the Lender in connection with
such realization, including reasonable and documented legal, accounting and receivers’ fees and disbursements; 

  

	 	(b)	 second, in payment of all reasonable and documented costs and expenses incurred by the Lender in connection
with such realization, including reasonable and documented legal, accounting and receivers’ fees and disbursements; and 

  

	 	(c)	 third, if all Obligations of the Borrower listed above have been paid and satisfied in full, any surplus
proceeds of realization shall be paid to the Borrower unless otherwise required in accordance with Applicable Law. 

ARTICLE 12 - COSTS, EXPENSES AND INDEMNIFICATION 
  

	12.01	 Indemnification by the Borrower 

 

	 	(a)	 The Borrower shall pay: (i) all reasonable and documented out-of-pocket expenses incurred by the Lender including the reasonable fees, charges and disbursements for one primary counsel for the Lender and one local counsel in each material relevant jurisdiction, in
connection with the preparation, negotiation, execution, delivery, maintenance, enforcement and administration of this Agreement and the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or
not the transactions contemplated hereby or thereby shall be consummated) including without limitation, all court costs and all reasonable and documented fees and disbursements of lawyers, auditors, consultants and accountants; (ii) all
reasonable and documented out-of-pocket expenses incurred by the Lender, including the reasonable and documented fees, charges and disbursements of counsel, in
connection with the enforcement or protection of its rights in connection with this Agreement and the other Loan Documents, including its rights under this Section 12.01, or in connection with the Advances made hereunder, including all such out-of-pocket expenses incurred during any workout restructuring or negotiations in respect of such Advances. 

  
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	 	(b)	 The Borrower shall indemnify the Lender and each Related Party of any of the Lender (each such Person being
called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the reasonable and documented fees, charges and disbursements of any counsel
for any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee by any third party or by any Obligor arising out of, in connection with, or as a result of: (i) the execution or delivery of this Agreement, any other Loan
Document or any agreement or instrument contemplated hereby or thereby, the performance or non-performance by the parties hereto of their respective obligations hereunder or thereunder or the consummation or
non-consummation of the transactions contemplated hereby or thereby; (ii) any Advance or the use or proposed use of the proceeds therefrom; 

  

	 	(i)	 any actual or alleged presence or release of Hazardous Materials in breach of the Requirements of Environmental
Law on or from any property owned or operated by any Obligor, or any Environmental Liability related in any way to any Obligor; or (iv) any actual or prospective claim, litigation, investigation or proceeding relating to any of the foregoing,
whether based on contract, tort or any other theory, whether brought by a third party or by an Obligor and regardless of whether any Indemnitee is a party thereto, provided that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related expenses: (x) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross
negligence, bad faith or wilful misconduct of, or the material breach of this Agreement by an Indemnitee; (y) have resulted solely from a dispute among Indemnitees that does not involve an act or omission by the Borrower or any other Obligor
(other than any claims against an Indemnitee in its capacity or in fulfilling its role as an administrative agent or arranger or any similar role under this Agreement), consisting of fees, charges or disbursements, other than the reasonable invoiced
fees, charges or disbursements of one primary counsel (and, to the extent deemed reasonably necessary or advisable by the Lender, one local counsel in each material relevant jurisdiction) for all Indemnitees taken as a whole, and solely in the case
of a conflict of interest, one additional primary counsel (and, to the extent deemed reasonably necessary or advisable by the Lender, one local counsel in each material relevant jurisdiction) to the affected Indemnitees, taken as a whole; or
(z) in respect of matters specifically addressed in Sections 13.01, (4) and 12.01(a). Notwithstanding the foregoing, this Section 12.01 shall not apply with respect to Taxes other than Taxes that represent losses, liability, claims, and
damages arising from any non-Tax claim. The indemnity contained herein shall survive the termination of the Commitments. 

  
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	12.02	 Waiver of Consequential Damages 

To the fullest extent permitted by Applicable Law, the Obligors shall not assert, and hereby waive, any claim against any Indemnitee, on any
theory of liability, for indirect, consequential, punitive, aggravated or exemplary damages (as opposed to direct damages) arising out of, in connection with, or as a result of this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby (or any breach thereof), the transactions contemplated hereby or thereby, any Advance or the use of the proceeds thereof. No Indemnitee shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Agreement or the other Loan Documents or the transactions contemplated hereby or thereby. 

 

	12.03	 Payments 

All amounts due under this Section shall be payable promptly after demand therefor. A certificate of the Lender setting forth the amount or
amounts owing to the Lender or Related Party, as the case may be, as specified in this Section, including reasonable detail of the basis of calculation of the amount or amounts, and delivered to the Borrower shall be conclusive absent manifest
error. 
 ARTICLE 13 - TAXES AND CHANGE OF CIRCUMSTANCES 

 

	13.01	 Increased Costs 

 

	 	(1)	 Increased Costs Generally. If, from time to time, any Change in Law shall: 

 

	 	(a)	 impose, modify or deem applicable any reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit extended or participated in by, the Lender; 

  

	 	(b)	 subject the Lender to any Tax of any kind whatsoever with respect to this Agreement or any Advance made by it,
except for Indemnified Taxes or Other Taxes covered by Section 13.01(4) and any Excluded Tax; or 

  

	 	(c)	 impose on the Lender or any applicable interbank market any other condition, cost or expense affecting this
Agreement or Advances made by the Lender; 

 and the result of any of the foregoing shall be to increase the cost to the Lender of making
or maintaining any Advance (or of maintaining its obligation to make any such Advance), or to reduce the amount of any sum received or receivable by the Lender hereunder (whether of principal, interest or any other amount), then upon request of the
Lender from time to time, the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender for such additional costs incurred or reduction suffered. Notwithstanding anything contained in this Agreement:
(i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines, requirements and directives thereunder, issued in connection therewith or in implementation thereof; and (ii) all
requests, rules, regulations, guidelines or directives whether concerning capital adequacy or liquidity promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the
United States or foreign regulatory authorities, in each case pursuant to Basel III, shall, in each case, be deemed a “Change in Law” regardless of the date enacted, adopted, applied or issued. 

  
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 (2) Capital and Liquidity Requirements. If the Lender determines in its sole and
absolute discretion, that any Change in Law affecting the Lender or any lending office of the Lender or the Lender’s holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of
return on the Lender’s capital or on the capital of the Lender’s holding company, if any, as a consequence of this Agreement, the Commitments of the Lender or the Advances made by the Lender, to a level below that which the Lender or its
holding company could have achieved but for such Change in Law (taking into consideration the Lender’s policies and the policies of its holding company with respect to, as applicable, capital adequacy or liquidity requirements), then from time
to time the Borrower will pay to the Lender such additional amount or amounts as will compensate the Lender or its holding company for any such reduction suffered. 

(3) Certificates for Reimbursement. A certificate of the Lender setting forth the amount or amounts necessary to compensate the Lender
or its holding company, as the case may be, as specified in paragraph (1) or (2) of this Section 13.01, including reasonable detail of the basis of calculation of the amount or amounts, and delivered to the Borrower from time to time shall
be conclusive absent manifest error. The Borrower shall pay the Lender the amount shown as due on any such certificate within ten (10) days after receipt thereof. 

(4) Delay in Requests. Failure or delay on the part of the Lender to demand compensation pursuant to this Section shall not constitute a
waiver of the Lender’s right to demand such compensation, except that the Borrower shall not be required to compensate the Lender pursuant to this Section for any increased costs incurred or reductions suffered: (i) more than six months
prior to the date that the Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and of the Lender’s intention to claim compensation therefore, unless the Change in Law giving rise to such increased
costs or reductions is retroactive, in which case the six –month period referred to above shall be extended to include the period of retroactive effect thereof; and (ii) for which the Lender is not seeking similar compensation from similar
borrowers. 
  

	13.02	 Taxes 

(1) Payments Subject to Taxes. Any and all payments by or on account of any obligations of any Obligor hereunder or under any Loan
Document shall be made without deduction or withholding for any Taxes except as required by Applicable Law. If any Obligor or the Lender is required by Applicable Law to deduct or withhold any Taxes for any such payment, then: (i) if such Tax
is an Indemnified Tax (including any Other Tax), the sum payable shall be increased by that Obligor when payable as necessary so that after making or allowing for all required deductions and withholdings (including deductions and withholdings
applicable to additional sums payable under this Section) the Lender receives an amount equal to the sum it would have received had no such deductions or withholdings been required; (ii) subject to clause (i) of this Section 13.02(1),
the Withholding Party shall be entitled to make any such deductions or withholdings required to be made by it under Applicable Law; and (iii) the Withholding Party shall timely pay the full amount required to be deducted or withheld to the
relevant Governmental Authority in accordance with Applicable Law. 

  
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 (2) Payment of Other Taxes by the Borrower. Without limiting the provisions of
paragraph (1) of this Section (4), the Obligors shall timely pay to the relevant Governmental Authority in accordance with Applicable Law, or at the option of the Lender, timely reimburse it for the payment of, any Other Taxes. 

(3) Indemnification by the Borrower. The Borrower shall indemnify the Lender within ten (10) days after written demand therefor
(specifying in reasonable detail the nature and the amount of the Indemnified Taxes or Other Taxes), for the full amount of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section) paid by the Lender in respect of any payment by or on account of any obligation of an Obligor hereunder or any other Loan Document and any reasonable expenses arising therefrom or with respect thereto, whether or
not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by the Lender shall be conclusive
absent manifest error. 
 (4) Evidence of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by an
Obligor to a Governmental Authority, the Obligor shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence
of such payment reasonably satisfactory to the Lender. 
 (5) Treatment of Certain Refunds and Tax Reductions. If the Lender
determines that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which an Obligor has paid additional amounts pursuant to this Section or that, because of the payment of such
Taxes or Other Taxes, it has benefited from a reduction in Excluded Taxes otherwise payable by it, it shall pay to the applicable the Borrower or Obligor, as applicable, an amount equal to such refund or reduction (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower or any Obligor under this Section with respect to the Taxes or Other Taxes giving rise to such refund or reduction), net of all out-of-pocket expenses of the Lender and without interest (other than any net after-Tax interest paid by the relevant Governmental Authority with respect to such
refund). The Borrower or other Obligor as applicable, upon the request of the Lender, agrees to repay the amount paid over to the Borrower or Obligor (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to
the Lender if the Lender is required to repay such refund or reduction to such Governmental Authority. Notwithstanding anything to the contrary in this Section 13.02(5), in no event will the Lender be required to pay any amount to the Borrower
or an Obligor pursuant to this Section 13.02(5) the payment of which would place the Lender or Lender in a less favourable after-Tax position than the Lender or Lender would have been in if the Tax
subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payment or additional amounts with respect to such Tax had never been paid. This paragraph shall not be construed
to require the Lender to make available its tax returns (or any other information relating to its Taxes that it deems confidential) to the Borrower or any other Person, to arrange its affairs in any particular manner or to claim any available refund
or reduction. 

  
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 (6) Status of Lender. To the extent that withholdings apply to any payment to be made
to the Lender, if the Lender is entitled to an exemption from or reduction of any withholding Tax with respect to any payments hereunder or under any other Loan Document it shall, to the extent it may lawfully do so, deliver to the Borrower, at the
time or times reasonably requested by the Borrower and at the time or times prescribed by Applicable Law, such properly completed and executed documentation reasonably requested by the Borrower or prescribed by Applicable Law as will permit such
payments to be made without withholding (including FATCA withholding, if applicable) or at a reduced rate of withholding. In addition, the Lender, if requested by the Borrower, shall deliver such other documentation prescribed by Applicable Law or
reasonably requested by the Borrower as will enable the Borrower to determine whether or not the Lender is subject to withholding, backup withholding or information reporting requirements (including, without limitation, FATCA). 

(7) Survival. Each party’s obligations under this Section 13.01(4) shall survive the resignation or replacement of the Lender
or any assignment of rights by, or the replacement of, the Lender, the termination of the Commitments and the repayment, satisfaction or discharge or all obligations under any Loan Document. 

 

	13.03	 Mitigation Obligations 

If the Lender requests compensation under Section 13.01, or requires the Borrower to pay any additional amount to the Lender or any
Governmental Authority for the account of the Lender pursuant to Section 13.01(4), then the Lender shall use reasonable efforts to designate a different lending office for funding or booking its Advances hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of the Lender, such designation or assignment: (i) would eliminate or reduce amounts payable pursuant to Section 13.01 or 13.01(4), as the case
may be, in the future; and (ii) would not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to the Lender. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by the
Lender in connection with any such designation or assignment. 
  

	13.04	 Illegality 

If the Lender determines that any Applicable Law has made it unlawful, or that any Governmental Authority has asserted that it is unlawful, for
the Lender or its applicable Lending Office to make or maintain any Advance (or to maintain its obligation to make any Advance), or to determine or charge interest rates based upon any particular rate, then, on notice thereof by the Lender to the
Borrower through the Lender, any obligation of the Lender with respect to the activity that is unlawful shall be suspended until the Lender notifies the Lender and the Borrower that the circumstances giving rise to such determination no longer
exist. Upon receipt of such notice, the Borrower shall, upon demand from the Lender (with a copy to the Lender), prepay or, if conversion would avoid the activity that is unlawful, convert any Advances, in order to avoid the activity that is
unlawful. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted. The Lender agrees to designate a different Lending Office if such designation will avoid the need for such notice
and will not, in the good faith judgment of the Lender, otherwise be materially disadvantageous to the Lender. 

  
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 ARTICLE 14 - SUCCESSORS AND ASSIGNS AND ADDITIONAL LENDERS 

 

	14.01	 Successors and Assigns Generally 

The provisions of this Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective successors and
assigns permitted hereby, except that no Obligor may assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender and no Lender may assign or otherwise transfer any of its rights or
obligations, hereunder except: (a) to an Eligible Assignee in accordance with the provisions of Section 14.02; (b) by way of participation in accordance with the provisions of Section 14.03; or (c) by way of pledge or assignment
of a security interest subject to the restrictions of Section 14.04 (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement expressed or implied, shall be construed to confer upon
any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in Section 14.03 and, to the extent expressly contemplated hereby, the Related Parties of the Lender) any
legal or equitable right, remedy or claim under or by reason of this Agreement. 
  

	14.02	 Assignment by Lender 

The Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of the Credit Facility and the Advances at the time owing to it); provided that: 
  

	 	(a)	 except if a Default or an Event of Default has occurred and is continuing or in the case of an assignment of
the entire remaining amount of the assigning Lender’s Commitment and the Advances at the time owing to it or in the case of an assignment to the Lender or an Affiliate of the Lender, the aggregate amount of the Commitment being assigned (which
for this purpose includes Advances outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal outstanding balance of the Advance of the assigning Lender subject to each such assignment (determined as of the date
the Assignment and Assumption with respect to such assignment is delivered to the Lender or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade Date) shall not be less than $1,000,000 (unless the Commitment or
amount owing to the Lender under the applicable Credit Facility is less than $1,000,000), unless the Lender and, so long as no Default or Event of Default has occurred and is continuing, the Borrower otherwise consents to a lower amount (each such
consent not to be unreasonably withheld or delayed); 

  

	 	(b)	 each partial assignment shall be made as an assignment of a proportionate part of all the assigning
Lender’s rights and obligations under this Agreement with respect to the Advance or the Commitment assigned; except that this paragraph (b) shall not prohibit the Lender from assigning all or a portion of its rights and obligations among
separate credits on a non-pro rata basis; 

  
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	 	(c)	 any assignment must be approved by the Lender acting reasonably (such approval not to be unreasonably withheld
or delayed); 

  

	 	(d)	 any assignment must be approved by the Borrower acting reasonably (such approval not to be unreasonably
delayed; provided that such approval shall not be considered to have been unreasonable withheld, if as a result of such approval, the Borrower would be required to pay an additional amount pursuant to Article 15) unless (A) the proposed
assignee is already the Lender, or (B) a Default or Event of Default has occurred; and 

  

	 	(e)	 the parties to each assignment shall execute and deliver to the Lender an Assignment and Assumption, together
with a processing and recordation fee in an amount specified elsewhere in this Agreement and the Eligible Assignee, if it shall not be the Lender, shall deliver to the Lender an Administrative Questionnaire. 

From and after the effective date specified in each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the
extent of the interest assigned by such Assignment and Assumption, have the rights and obligations of the Lender under this Agreement and the other Loan Documents, including any collateral security, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, the Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits of Article 12 and Article 13, and shall continue to be liable for any breach of this Agreement by the Lender, with respect to facts and
circumstances occurring prior to the effective date of such assignment. Any assignment or transfer by the Lender of rights or obligations under this Agreement that does not comply with this paragraph (other than a participation described in
Section 14.03) shall be null and void as against the Borrower. Any payment by an assignee to an assigning Lender in connection with an assignment or transfer shall not be or be deemed to be a repayment by the Borrower or a new Advance to the
Borrower. 
  

	14.03	 Participations 

The Lender may at any time, without the consent of, or notice to, the Borrower, sell participations to any Person (other than a natural person)
(each, a “Participant”) in all or a portion of the Lender’s rights and/or obligations under this Agreement (including all or a portion of its Commitment and/or the Advances owing to it); provided that: (a) the
Lender’s obligations under this Agreement shall remain unchanged; (b) the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations; and (c) the Borrower shall continue to deal solely
and directly with the Lender in connection with the Lender’s rights and obligations under this Agreement. Any payment by a Participant in connection with a sale of a participation shall not be or be deemed to be a repayment by the Borrower or a
new Advance to the Borrower. 

  
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 The voting rights of any Participants shall: (i) be limited to matters in respect of
(A) increases in Commitments of such Participant, (B) reductions of principal, interest or fees payable to such Participant, (C) extensions of final maturity or scheduled amortization of the Advances or Commitments in which such
Participant participates, and (D) releases of all or substantially all of the value of the guarantees, or all or substantially all of the Collateral (except as otherwise permitted by the terms hereof and of the other Loan Documents); and
(ii) for clarification purposes, not include the right to vote on waivers of Defaults or Events of Default. 
 A Participant:
(i) shall comply with the requirements of Section 13.02(6) as if it were the Lender; and (ii) shall not be entitled to receive any greater payment under Section 13.01 or 13.01(4) than the applicable Lender would have been
entitled to receive with respect to the participation sold to such Participant. 
  

	14.04	 Certain Pledges 

The Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations
of the Lender, but no such pledge or assignment shall release the Lender from any of its obligations hereunder or substitute any such pledgee or assignee for the Lender as a party hereto. 

ARTICLE 15 - GENERAL 
  

	15.01	 Exchange and Confidentiality of Information 

The Lender may, with the consent of the Borrower, reproduce, disclose and use information about the Borrower (including, without limitation,
the Borrower’s name and any identifying logos) and the transactions herein contemplated to enable the Lender to publish promotional “tombstones” and other forms of notices of the transactions contemplated herein in any manner and in
any media (including, without limitation, brochures). The Borrower acknowledges and agrees that no compensation will be payable by the Lender resulting therefrom, and that the Lender shall have no liability whatsoever to the Borrower or any of its
employees, officers, directors, Affiliates or shareholders in obtaining and using such information in accordance with the terms hereof. 
  

	15.02	 Addresses, Etc. for Notices 

(1) The addresses and facsimile numbers for the purposes of notices and other communications to the Borrower and the Lender are set out on the
signatures pages and Schedules to this Agreement. 
 (2) Notices Generally. Except in the case of notices and other communications
expressly permitted to be given by telephone (and except as provided in Section 15.02(3)), all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by facsimile to the addresses or facsimile numbers specified elsewhere in this Agreement or, if to the Lender, to it at its address or facsimile number specified in the Register or, if to an Obligor other than
the Borrower, in care of the Borrower. Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been given when received; notices sent by 

  
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facsimile shall be deemed to have been given when sent (except that, if not given on a business day between 9:00 a.m. and 5:00 p.m. local time where the recipient is located, shall be deemed to
have been given at 9:00 a.m. on the next business day for the recipient). Notices delivered through electronic communications to the extent provided in Section 15.02(3) below shall be effective as provided in Section 15.02(3). 

(3) Electronic Communications. Notices and other communications to the Lender hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by the Lender, provided that the foregoing shall not apply to notices to the Lender of Advances to be made if
the Lender has notified the Lender that it is incapable of receiving notices under such Article by electronic communication. The Lender or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it, provided that approval of such procedures may be limited to particular notices or communications. 

Unless the Lender otherwise prescribes: (i) notices and other communications sent to an email address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other written acknowledgement), provided
that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient; and
(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is available and identifying the website address therefor. 
 (4) Change
of Address, Etc. Any party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other parties hereto. 
  

	15.03	 Governing Law and Submission to Jurisdiction 

(1) Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the Province of Ontario and the
laws of Canada applicable therein. 
 (2) Submission to Jurisdiction. The Borrower irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of the courts of the Province of Ontario, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any
judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such court. Each of the parties hereto agrees that a final judgment in any
such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or in any other Loan Document shall affect any right that the Lender
may otherwise have to bring any action or proceeding relating to this Agreement against the Borrower or its properties in the courts of any jurisdiction. 

  
 65 

 (3) Waiver of Venue. The Borrower irrevocably and unconditionally waives, to the
fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement in any court referred to in Section 15.03(2). Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

 

	15.04	 Benefit of this Agreement 

This Agreement shall enure to the benefit of and be binding upon the Borrower, the Lender and their respective permitted successors and
permitted assigns. 
  

	15.05	 Survival 

The provisions of Article 12 shall survive the repayment of all Advances, whether on account of principal, interest or fees, and the
termination of this Agreement, unless a specific release of such provisions by the Lender is delivered to the Borrower. 
  

	15.06	 Severability 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall not invalidate the remaining provisions hereof
and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
  

	15.07	 Whole Agreement 

This Agreement (along with the other Loan Documents) constitutes the whole and entire agreement between the parties hereto and cancels and
supersedes any prior agreements, undertakings, declarations, commitments, representations, written or oral, in respect thereof. 
  

	15.08	 Further Assurances 

The Borrower and the Lender shall promptly cure any default by it in the execution and delivery of this Agreement, the Loan Documents or of any
of the agreements provided for hereunder to which it is a party. The Borrower, at its expense, shall promptly execute and deliver to the Lender, upon reasonable request by the Lender, all such other and further documents, agreements, opinions,
certificates and instruments in compliance with and required to give effect to the covenants and agreements of the Borrower hereunder or to make any recording, file any notice or obtain any consent contemplated herein. 

 

	15.09	 Waiver of Jury 

EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED 

  
 66 

 
ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE
MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 
  

	15.10	 Counterparts; Integration; Effectiveness. 

This Agreement may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Agreement and the other Loan Documents and any separate letter agreements with respect to fees payable to the Lender constitute the entire contract among the
parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof. Except as provided in Section 3.01, this Agreement shall become effective
when it has been executed by the Lender and when the Lender has received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an executed counterpart of a signature page of this
Agreement by telecopy or by sending a scanned copy by electronic mail shall be effective as delivery of a manually executed counterpart of this Agreement. 
  

	15.11	 Electronic Execution of Assignments. 

The words “execution”, “signed”, “signature”, and words of like import in any Assignment and Assumption shall be
deemed to include electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as
the case may be, to the extent and as provided for in any Applicable Law, including Parts 2 and 3 of the Personal Information Protection and Electronic Documents Act (Canada), the Electronic Commerce Act, 2000 (Ontario) and other
similar federal or provincial laws based on the Uniform Electronic Commerce Act of the Uniform Law Conference of Canada or its Uniform Electronic Evidence Act, as the case may be. 

 

	15.12	 Treatment of Certain Information; Confidentiality 

(1) The Lender agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed
(a) to any Participants or prospective Lenders or Participants; (b) to the extent required by the order of any court or administrative agency in any pending legal, judicial or administrative proceeding or otherwise as required by
Applicable Law (in which case, such Person shall, to the extent permitted by Applicable Law, notify the Borrower promptly thereof, in advance); (c) upon the request or demand of any regulatory authority purporting to have jurisdiction over such
Person or its Affiliates (in which case, to the extent permitted by Applicable Law, such Person shall, except with respect to any audit or examination conducted by bank accountants or any governmental bank regulatory authority exercising examination
or regulatory authority, promptly notify the Borrower in advance); (d) to their 

  
 67 

 
Affiliates and their Affiliates’ respective employees, directors, legal counsel, independent auditors, professionals and other experts or agents of such person on a “need to know”
basis and who are informed of the confidential nature of such information and are or have been advised of their obligation to keep information of this type confidential; (e) to the extent any such information becomes publicly available other
than by reason of disclosure by such Person in breach of this provision or is received by such Person from a third party that is not to such Person’s knowledge subject to confidentiality obligations to the Borrower or any of its Affiliates;
(b) with the Borrower’s prior written consent; (g) to the extent independently developed by such Person or its Affiliates; (h) in protecting and enforcing the rights of the Lender with respect to this Agreement and the other Loan
Documents including for the purposes of establishing a “due diligence” defense; and (i) on a confidential basis to any actual or prospective direct or indirect contractual counterparty to any swap or derivative transaction relating to
the Borrower or any of its Subsidiaries; provided that the disclosure of any such information to any prospective Lenders or Participants or prospective Participants or swap or derivative counterparty referred to above shall be made subject to
Applicable Law and the acknowledgment and acceptance by the Lender or prospective Lender or Participant or prospective Participant or swap or derivative counterparties that such information is being disseminated on a confidential basis (on
substantially the terms set forth in this Section or as is otherwise reasonably acceptable to the Borrower). It is expressly understood that no Lender shall be liable to the extent any confidentiality restrictions are violated by any other Lender,
Participant, prospective Lender or prospective Participant. The Lender shall be liable for any violation of the confidentiality restrictions set forth herein by any of its employees or directors. 

(2) For purposes of this Section, “Information” means all information received in connection with this Agreement from any Obligor
relating to any Obligor or any of its Subsidiaries or any of their respective businesses, other than any such information that is available to the Lender on a non-confidential basis prior to such receipt. Any
Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information. In addition, the Lender may disclose to any agency or organization that assigns standard identification numbers to loan facilities such basic information describing the
facilities provided hereunder as is necessary to assign unique identifiers (and, if requested, supply a copy of this Agreement), if being understood that the Person to whom such disclosure is made will be informed of the confidential nature of such
Information and instructed to make available to the public only such Information as such person normally makes available in the course of its business of assigning identification numbers. 

 

	15.13	 Time of the Essence 

Time shall be of the essence of this Agreement. 
  

	15.14	 Delivery by Facsimile Transmission 

This Agreement may be executed and delivered by facsimile transmission or other electronic communication and each of the parties hereto may
rely on such facsimile signature as though such facsimile signature were an original signature. 

  
 68 

	15.15	 Termination of Agreement and Loan Documents 

This Agreement and the Loan Documents shall terminate and shall be of no further effect, other than with respect to indemnities expressly
stated to survive termination of this Agreement, and the Lender shall execute and deliver all discharges and termination statements requested by the Borrower and/or any other Obligor (at the expense of the Borrower) upon indefeasible repayment of
all Obligations owing to the Lender and their respective Affiliates, if any, (other than contingent indemnification obligations in respect of which no claim has then been made and ordinary course obligations in respect of Service Agreements and
charge card agreements) and the termination of the Commitments. 
 The Lender shall release the Security and execute related documents in
connection with a termination as described in this Section 15.15 and the Lender shall execute and deliver all discharges and termination statements requested by the Borrower and/or any other Obligor (at the expense of the Borrower) in
connection with such termination. 
  

	15.16	 Anti-Money Laundering Legislation 

(1) The Borrower acknowledges that, pursuant to the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and other
applicable anti-money laundering, anti-terrorist financing, government sanction and “know your client” laws (collectively, including any guidelines or orders thereunder, “AML Legislation”), the Lender may be required to obtain,
verify and record information regarding the Borrower, the Guarantors, their directors, authorized signing officers, direct or indirect shareholders or other Persons in control of the Borrower and the Guarantors, and the transactions contemplated
hereby. The Borrower shall promptly provide all such information, including supporting documentation and other evidence, as may be reasonably requested by the Lender, or any prospective assignee or Participant of the Lender, in order to comply with
any applicable AML Legislation, whether now or hereafter in existence. 
 (2) The Borrower acknowledges and agrees that, pursuant to the
provisions of the Proceeds of Crime (Money Laundering) and Terrorist Financing Act (Canada) and other anti-money laundering, anti-sanction and anti-corruption law, the Lender may be required to obtain, verify and record information with
respect to the Obligors and the Borrower hereby agrees to cooperate with the Lender and provide it with all information that may be required in order to fulfil their obligations under such laws. Without limiting the generality of the foregoing, the
Borrower agrees to use commercially reasonable efforts to obtain the consent of any of their respective officers, directors and employees whose consent to the disclosure of any such information is required under applicable privacy legislation in
Canada. 
 [The remainder of this page has intentionally been left blank.] 

  
 69 

 IN WITNESS WHEREOF the parties hereto have executed this Agreement. 

 

							
	BORROWER:	 		 	SUNDIAL GROWERS INC.
				
	Address:	 		 	by:	 	  

		 		 		 	Name:
		 		 		 	Title:
				
	Attention:    [***]	 		 		 	 /s/ [***]

	Telephone:  [***]	 		 		 	Name: [***]
	E-mail:        [***]	 		 		 	Title: [***]

 Signature Page to Credit Agreement 

							
	LENDER:	 		 	BANK OF MONTREAL
				
		 		 	by:	 	 /s/ [***]

	Address:	 		 		 	Name: [***]
		 		 		 	Title: [***]
				
	Attention:    [***]	 		 		 	 /s/ [***]

	Telephone:  [***]	 		 		 	Name: [***]
	Email:         [***]	 		 		 	Title: [***]

 Signature Page to Credit AgreementEX-4.4

 Exhibit 4.4 

CREDIT AGREEMENT 

Dated the 10th day of April, 2019 

This Credit Agreement is made between FARM CREDIT CANADA (“FCC”) and SUNDIAL GROWERS INC. (the “Borrower”). FCC will provide
and/or maintain credit facilities to the Borrower on the terms and conditions set out below and in the attached Schedules (the “Agreement”). This Agreement consolidates, amends and restates the provisions of all existing credit
agreements between the Borrower and FCC. 
  

	1.	 Loan Parties 

 

			
		
	Borrower:	  	 Sundial Growers Inc.
 Suite 200, 919-11 Avenue
 SW Calgary AB T2R 1P3

		
	Guarantor:	  	 2011296 Alberta Inc.
 Suite 200, 919-11 Avenue
 SW Calgary AB T2R 1P3

		
	Guarantor:	  	 Kamcan Products Inc.
 Suite 200, 919-11 Avenue
 SW Calgary AB T2R 1P3

		
	Guarantor:	  	 Sprout Technologies Inc.
 Suite 200, 919-11 Avenue
 SW Calgary AB T2R 1P3

 The “Loan Parties” means the Borrower and the Guarantors. 

 

	2.	 Credit Facilities 

 

	 	2.1	 Existing Credit Facilities Details 

The following existing credit facilities were established pursuant to a loan agreement between FCC and the Borrower dated October 22, 2018
(the “Existing Credit Facilities”). The Existing Credit Facilities will be governed by this Agreement, and the terms and conditions herein supersede any previous terms and conditions in respect of them. The maturity date of the
Existing Credit Facilities was May 31, 2019, but is amended and extended by this Agreement to September 30, 2019: 
  

			
	 Credit Facility Details

	 Loan number
	  	[***]
	 Principal amount
	  	$7,000,000.00
	 Credit Facility type
	  	RPL

  
 1 

			
	 Interest rate type
	  	Variable Open
	 Product type
	  	Standard
	 Term
	  	1 year(s) 0 month(s)
	 Amortization period
	  	1 year(s) 0 month(s)
	 Interest rate (subject to Interest Rate Guarantee provisions below)
	  	8.95%
	 Interest Rate Guarantee Expiry Date
	  	
	 Loan Approval Expiry Date
	  	2019-02-15
	 Maturity Date
	  	2019-09-30

  

	 	2.2	 New Credit Facilities Details (Credit Facility [***]) 

The following new credit facilities will be governed by this Agreement (the “New Credit Facilities”): 

 

			
	 Credit Facility Details

	 Loan number
	  	[***]
	 Principal amount
	  	$3,000,000
	 Credit Facility type
	  	RPL
	 Interest rate type
	  	Variable Open
	 Product type
	  	Standard
	 Term
	  	1 year(s) 0 month(s)
	 Amortization period
	  	1 year(s) 0 month(s)
	 Interest rate
	  	9.50%
	 Loan Approval Expiry Date
	  	2019-09-13
	 Maturity Date
	  	2019-09-30
	 First Payment type details
	  	Interest only
	 Payment frequency
	  	April 30, 2019
	 May 31, 2019
	  	
	 July 2, 2019
	  	
	 July 31, 2019
	  	
	 September 3, 2019
	  	
	 Second Payment type details
	  	Fixed Principal plus interest
	 Payment frequency
	  	2019-09-30
	 Payment amount
	  	$3,020,667.67
	 Maturity Date
	  	2019-09-30

 The payment schedule calculation for the New Credit Facilities is set out in Schedule F to this Agreement. 

  
 2 

 As of the date of this Agreement: (i) the current FCC Variable Mortgage Rate is 4.95%
per annum, and (ii) the current applicable interest rate for the New Credit Facilities is FCC’s Variable Mortgage Rate plus 4.55%. 
  

	 	2.3	 Payee Details 

The Borrower hereby authorizes and directs FCC to pay the New Credit Facilities funds set out in paragraph 2.2 above as follows: 

 

					
	 Payee Name
	  	 Purpose
	  	 Amount

	Borrower	  	Other Agricultural Purposes	  	 $2,970,000.00
 (less solicitor fees of Miller
Thomson LLP)

	FCC	  	FCC – Credit Facility Processing Fee	  	$30,000.00

 The closing date for the New Credit Facilities is the 10th
day of April, 2019, or such other date as may be agreed upon by the parties (the “Closing Date”). 
 FCC may adjust the
stipulated payments of principal and interest for the Credit Facilities with a variable interest rate, as a result of changes in the interest rate, to ensure that the principal outstanding is being paid as originally intended under this Agreement.
Specific loan terms set out in Schedule B hereto are part of the New Credit Facilities. 
  

	 	2.4	 Schedules 

The following schedules form part of this Credit Agreement: 
  

	 	(a)	 Schedule A – Standard Terms and Conditions 

 

	 	(b)	 Schedule B – Loan Specific Features 

 

	 	(c)	 Schedule C – Definitions 

 

	 	(d)	 Schedule D – Compliance Certificate 

 

	 	(e)	 Schedule E – Pre-Authorized Payment Authority

  

	 	(f)	 Schedule F – Payment Schedule Calculation 

The terms and conditions contained in the attached Schedules are incorporated into and form part of this Agreement. In the event of a conflict
between the terms of this Agreement and the terms of the Schedules, the terms of this Agreement prevail. 

  
 3 

	3.	 Security 

All the existing Security Documents listed below that have been previously delivered to FCC remain in full force and effect and secure all
Outstanding Obligations. In addition, the Loan Parties must execute and deliver to FCC new Security Documents outlined below as undated documents, to secure the Outstanding Obligations (the “Security Documents”): 

 

	 	3.1	 Guarantees 

 

	 	(a)	 An unlimited guarantee executed on October 24th, 2018 by 2011296 Alberta Inc. in favour of FCC for all
obligations owed to FCC by the Borrower. 

  

	 	(b)	 An unlimited guarantee executed on October 24th, 2018 by Kamcan Products Inc. in favour of FCC for all
obligations owed to FCC by the Borrower. 

  

	 	(c)	 An unlimited guarantee executed on October 24th, 2018 by Sprout Technologies Inc. in favour of FCC for all
obligations owed to FCC by the Borrower. 

  

	 	3.2	 Real Property Security 

 

	 	(a)	 New continuing collateral mortgage (the “New Continuing Collateral Mortgage”) provided by the
Borrower to be registered in the amount of $10,500,000 against the following lands: 

  

	 	(i)	 Plan 7410409 Block 6 (Ptn.NE 24-27-2-5); 

  

	 	(ii)	 Plan 1710892 Block 1 Lot 13 (NE 29-32-1-5); and 

  

	 	(iii)	 Plan 1511656 Block 1 Lot 4 (NE 29-32-1-5) (the “Property”) 

  

	 	(b)	 Release and discharge of the existing mortgage in the amount of $7,000,000 registered on 2018-05-11 as registration number: 181 237 833 given by the Borrower and registered against the Property, upon receiving proof of registration of the New Continuing Collateral
Mortgage specified in 3.2(a). 

  

	 	3.3	 Personal Property Security 

 

	 	(a)	 New security agreement from the Borrower granting FCC a second security interest in IPO Proceeds up to
$10,500,000.00. 

  

	 	(b)	 A general security agreement from the Borrower granting FCC a third security interest in all present and after
acquired personal property, registered on 2018-09-12 as registration number: [***] (as such registration may be amended, replaced, restated, renewed, supplemented, from
time to time). 

  
 4 

	 	(c)	 A general security agreement from Kamcan Products Inc. granting FCC a third security interest in all present
and after acquired personal property, registered on 2018-09-12 as registration number: [***] (as such registration may be amended, replaced, restated, renewed,
supplemented, from time to time). 

  

	 	(d)	 A general security agreement from 2011296 Alberta Inc. granting FCC a third security interest in all present
and after acquired personal property, registered on 2018-09-12 as registration number: [***] and registration number: [***] (as each such registration may be amended,
replaced, restated, renewed, supplemented, from time to time). 

  

	 	(e)	 A general security agreement from Sprout Technologies Inc. granting FCC a third security interest in all
present and after acquired personal property, registered on 2018-09-12 as registration number: [***] (as such registration may be amended, replaced, restated, renewed,
supplemented, from time to time). 

  

	 	3.4	 Inter-Creditor Arrangements 

 

	 	(a)	 New intercreditor agreement among FCC, the Loan Parties, ATB, BMO, and 2082033 acknowledging FCCs priority
position over the IPO Proceeds. 

  

	 	3.5	 Cross Collateralization 

All Security Documents secure the payment and performance of (i) the Outstanding Obligations, and (ii) all other Indebtedness,
liabilities and obligations of each Loan Party under all other existing or future credit facilities or loans that such Loan Party has with FCC. Each Loan Party agrees to execute and/or provide all such other agreements, information and other matters
and things as may be requested by FCC to give effect to the provisions of this Section. 
  

	4.	 Financial Statements and Other Information 

 

	 	4.1	 Until the Outstanding Obligations are repaid in full and FCC no longer has any obligation under this
Agreement or any other credit or loan agreement with FCC, the Borrower will deliver to FCC: 

  

	 	(a)	 Confirmation that the Borrower maintains good standing of its license under the Access to Cannabis for
Medical Purposes Regulations of the Controlled Drugs and Substances Act and shall provide to FCC a confirmation on an annual basis of the renewal of its license within 30 days of renewal. The Borrower shall comply with the Controlled Drugs
and Substances Act and the Access to Cannabis for Medical Purposes Regulations. If at any time the Borrower’s license under the above Act should cease to be valid, FCC must be notified immediately. 

  
 5 

	 	(b)	 Quarterly ‘in-house’ financial statements for the Borrower
within 60 days of the end of each quarter. 

  

	 	(c)	 Confirmation that ATB lending requirements (specifically covenants) have been met and immediate notification to
be provided to FCC of any covenant breach (within 7 days of occurrence). 

  

	 	(d)	 A Compliance Certificate, in form and substance satisfactory to FCC (substantially in the form set forth in
Schedule D attached hereto), within 120 days after the end of each fiscal year reporting period, or at any time upon the request of FCC, confirming the Borrower is in compliance with all covenants and conditions of the Loan Documents together with
an explanation if there is any non-compliance. 

  

	 	(e)	 Such other financial statements or financial reporting for any of the Loan Parties as FCC may reasonably
request. 

  

	 	4.2	 FCC has collected accountant prepared financial statements. 

The Borrower agrees that all financial information provided by the Borrower to FCC in any form and at any time is accurate, complete and
current as of the date provided. The Borrower understands that if the Borrower provides any financial information that is untrue, inaccurate, not current or incomplete, FCC has the right to treat this as a default and may, among other remedies
available to FCC under this Agreement, terminate the Borrower’s Loan and demand its immediate repayment. 
  

	5.	 Fees 

  

	 	5.1	 The Borrower must pay FCC the following non-refundable fees:

  

	 	(a)	 Processing Fee. A non-refundable loan processing fee in the
amount of $20,000.00, which shall be fully earned by FCC and payable by the Borrower on the Closing Date. Such fee will be retained by FCC from the initial Advance under this Agreement. 

 

	 	(b)	 Reporting and Monitoring Default Fee. If the Borrower breaches a reporting or monitoring covenant, FCC
shall assess a default fee of $1,000.00 per breach. 

  

	 	(c)	 Annual Review and Non-Compliance Risk Adjustment Fee. If the
Borrower breaches a financial covenant under this Agreement, FCC will assess a risk adjustment fee equal to 0.25% of the principal amount of all Credit Facilities outstanding as at the end of the Financial Year in which the covenant was breached.
This fee will be added to the Outstanding Obligations 

  
 6 

 Fees represent FCC’s liquidated damages, not penalties, to compensate FCC for the
higher than forecast risk and/or non-performance of a covenant. Liquidated damages means the parties acknowledge and agree that this fee is a reasonable estimation of the actual damages suffered by FCC upon a
breach contemplated by this section, and that the Borrower will pay the fee to FCC in the event of such a breach. The Borrower acknowledges that the precise amount of FCC’s actual damages would be extremely difficult to calculate and that the
fee set out in this Agreement represents a reasonable estimate of the actual damages and effort incurred by FCC in responding to a breach. Fees are due on demand. Payment of a fee does not cure a default and does not affect our remaining rights
under this Agreement or any other document. 
  

	6.	 Governing Law 

 

	 	6.1	 This Agreement is governed by and will be interpreted in accordance with the laws of the Province of
Alberta and the laws of Canada applicable in that province. The Loan Parties irrevocably submit to the non-exclusive jurisdiction of the courts in such province. 

[Remainder of page left intentionally blank, signature page follows] 

  
 7 

 Acceptance 

This Agreement may be accepted by signing, dating and returning to FCC on or before the 30th of April, 2019 the enclosed copy of this Agreement executed by the
Loan Parties as set out below. Failing such acceptance, this offer shall be of no further force or effect. 
  

			
	FARM CREDIT CANADA
		
	By:	 	 /s/ [***]

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

 [Borrower and Guarantor Signature Page to Follow] 

  
 8 

 AGREED TO and ACCEPTED this 10 day of April, 2019. 

 

							
	Borrower:	 		 	SUNDIAL GROWERS INC.
				
		 		 	By:	 	 /s/ [***]

		 		 		 	Name: [***]
				
		 		 	By:	 	          

		 		 		 	Name:
			
		 		 	I/we have authority to bind the Corporation
			
	Guarantor:	 		 	2011296 ALBERTA INC.
				
		 		 	By:	 	 /s/ [***]

		 		 		 	Name: [***]
				
		 		 	By:	 	          

		 		 		 	Name:
			
		 		 	I/we have authority to bind the Corporation
			
	Guarantor:	 		 	KAMCAN PRODUCTS INC.
				
		 		 	By:	 	 /s/ [***]

		 		 		 	Name: [***]
				
		 		 	By:	 	          

		 		 		 	Name:
			
		 		 	I/we have authority to bind the Corporation
			
	Guarantor:	 		 	SPROUT TECHNOLOGIES INC.
				
		 		 	By:	 	 /s/ [***]

		 		 		 	Name: [***]
				
		 		 	By:	 	          

		 		 		 	Name:
			
		 		 	I/we have authority to bind the Corporation

  
 9 

 Schedule A – Standard Terms and Conditions 

 

	1.	 Conditions Precedent 

 

	 	1.1	 General Conditions Precedent to the Initial Advance on New Credit Facilities

 The obligation of FCC to make the initial Advance under this Agreement is conditional on receipt of the documents
listed below in the form satisfactory to FCC, as well as satisfactory evidence given to FCC and its counsel as to compliance with the conditions outlined below: 
  

	 	(a)	 Loan Documents. This Agreement and all other Loan Documents have been executed and delivered to FCC.

  

	 	(b)	 Registration and Perfection. All Security Documents have been registered, recorded, filed or perfected
in all applicable jurisdictions. 

  

	 	(c)	 Certificates, Resolutions and Legal Opinions. FCC shall be provided with: 

 

	 	(i)	 A copy of the constating documents, by-laws, shareholders agreements
and partnership agreements, as applicable, of each Loan Party and a copy of the resolutions of the board of directors of each Loan Party authorizing the execution, delivery and performance of this Agreement and the other Loan Documents certified by
a senior officer of the Loan Party; 

  

	 	(ii)	 A certificate of incumbency for each Loan Party showing the names, offices and specimen signatures of the
officers authorized to execute this Agreement and the other Loan Documents; and 

  

	 	(iii)	 Such legal opinions from counsel to the Loan Parties addressed to FCC covering matters relating to the Loan
Parties, this Agreement and the other Loan Documents as FCC may require. 

  

	 	(d)	 Inter-creditor Arrangements. All subordination and postponement agreements and inter-creditor agreements
from other secured creditors of the Loan Parties as required in this Agreement and as FCC may be required to achieve the intended priority of its security and registrations, have been duly executed and unconditionally delivered by all parties
thereto. 

  

	 	(e)	 Good Standing. Each of the Loan Parties is in possession of, and in good standing or compliance with,
all necessary permits, licenses, authorizations and other approvals required to legally undertake and carry on its business in each of the provinces where it carries on business. 

  
 10 

	 	(f)	 Due Diligence. FCC has completed and is satisfied with the results of its financial, business,
accounting, tax, environmental, legal and other due diligence with respect to the Loan Parties, including the search results of all personal property, litigation, judgment, bankruptcy, bulk sale, execution and other searches conducted with respect
to the Loan Parties in all applicable jurisdictions. 

  

	 	(g)	 Payment of Fees. FCC has received (or will receive from the initial Advance) full payment of all fees,
expenses and other amounts due and payable to FCC, including all legal fees and disbursements of FCC’s legal counsel. 

  

	 	(h)	 Repayments of Indebtedness and Discharge of Liens. All Indebtedness owing to any creditor by any Loan
Party as determined by FCC has been repaid in full on the applicable Closing Date other than Permitted Indebtedness. All Liens held by any creditor charging any Collateral has been discharged, or where applicable, partially discharged, other than
Permitted Liens. 

  

	 	(i)	 Title Insurance; Title Opinion. In respect of the New Continuing Collateral Mortgage, FCC has received
either: (i) a commitment to title insure from a reputable title insurer confirming that a lender’s title insurance policy is in effect in such amounts and with such endorsements as required by FCC, or (ii) a title opinion from the
Loan Party’s legal counsel. 

  

	 	(j)	 Certificate of Insurance; Adequacy of Coverage. 

 

	 	(i)	 A certificate of insurance in respect of all policies of insurance maintained by the Loan Parties confirming
compliance with all insurance requirements under this Agreement; and 

  

	 	(ii)	 Written confirmation from the Borrower’s insurance broker addressed to FCC confirming the adequacy of
insurance coverage for the Core Business. 

  

	 	(k)	 Pre-Authorized Payments. A completed pre-authorized payment authorization in the form set forth in Schedule E. 

  

	 	(l)	 Other Documents. Such other documents and agreements as are customary in transactions of this type or as
FCC may reasonably request. 

  

	 	1.2	 Conditions Precedent to All Advances 

The obligation of FCC to make available each Advance under this Agreement is conditional upon FCC’s receipt of the documents listed below
in form satisfactory to FCC together with satisfactory evidence as to compliance with the following conditions: 
  

	 	(a)	 Initial Conditions Precedent. All initial conditions precedent in section 1.1 above remain satisfied and
in full force and effect. 

  
 11 

	 	(b)	 Notice of Borrowing. A duly executed notice of borrowing in respect of the requested Advance.

  

	 	(c)	 Representations and Warranties. The representations and warranties of the Loan Parties in each of the
Loan Documents are true and correct in all material respects as if made on and as of each such date (unless specifically made as of a certain date). 

  

	 	(d)	 Loan Documents. All Loan Documents are in full force and effect. 

 

	 	(e)	 No Default. No Default or Event of Default has occurred and is continuing or would result after giving
effect to the Advance. 

  

	 	(f)	 No Material Adverse Change. No material adverse change has occurred since the date of the most recent
Compliance Certificate or other financial reporting delivered by the Borrower to FCC. A material adverse change means any event, development, circumstance or situation that has had or could have a Material Adverse Effect. 

 

	 	(g)	 Priority Payables. There are no overdue payments owed by any Loan Party to any third party.

  

	 	(h)	 Bring-Down Certificate. A bring-down certificate in form and substance satisfactory to FCC executed by a
senior officer of the Borrower on the applicable Advance date confirming that all of the terms and conditions set out in this Section are true and correct as of the date of the Advance. 

 

	 	(i)	 Consents and Approvals. All necessary approvals, clearances and consents from any Governmental Authority
or other Person necessary to complete the transactions contemplated by the Loan Documents have been obtained by the Loan Parties. 

  

	 	(j)	 Environmental Assessment. FCC has completed and is satisfied with its environmental risk assessment
process, including if requested by FCC or required by Applicable Laws, a Phase 1 or 2 environmental report. 

  

	 	(k)	 Title Search and other Due Diligence Searches. FCC has conducted a title search of the Property and
confirmed that there are no Liens registered on title to the Property, and has conducted such other due diligence searches as it deems necessary or appropriate to confirm the absence of Liens. 

 

	 	1.3	 Waiver of Conditions Precedent 

All conditions precedent specified throughout this Agreement are for the sole benefit of FCC and may be waived by FCC, in whole or in part,
with or without conditions, without prejudice to any other or future rights that it may have against the Loan Parties. 

  
 12 

	2.	 Repayment, Prepayment and Maturity 

 

	 	2.1	 Undisbursed Funds 

Any portion of a Loan that is not disbursed by its Loan Approval Expiry Date may be cancelled at FCC’s option. 

 

	 	2.2	 Proof of Debt 

The Borrower hereby agrees that FCC’s accounting records provide final proof of the state of the Loans, including the principal balance
outstanding, interest calculations and payment dates. 
  

	 	2.3	 Repayment 

All Outstanding Obligations must be repaid in full in accordance with the applicable Payment Calculation Schedule, set out in Schedule F, and
the terms of this Agreement. The Credit Facilities will terminate on the applicable Maturity Date, unless extended in writing to a new Maturity Date by FCC on or before that date. Extensions will be granted in the sole discretion of FCC. 

 

	 	2.4	 Direct Payment of IPO Proceeds 

The Borrower agrees to direct payment of the IPO Proceeds in an amount equal to the sum of $30,000,000.00 (plus accrued and unpaid interest,
fees and other amounts (if any), as specified by BMO in a pay out statement issued at or about the time of the IPO Issuance, and $10,500,000.00, as specified by FCC in a pay out statement issued at or about the time of the IPO Issuance, in each case
into a segregated account which is subject to a blocked account agreement, satisfactory to each of BMO and FCC, acting reasonably. 
  

	 	2.5	 Payment Regardless if IPO Proceeds Delayed 

Notwithstanding Section 2.3, the Borrower hereby agrees to pay FCC the Outstanding Obligations owing in the amount of $10,000,000 no later
than September 30, 2019, regardless if the IPO or the payment of the IPO Proceeds is delayed. 
  

	 	2.6	 Payment on Termination 

All Outstanding Obligations must be repaid in full immediately upon termination. The Credit Facilities will terminate if any Loan Party makes
any material misrepresentation to FCC, commits fraud against FCC, if FCC becomes aware that any Loan Party has acted in a manner that calls into question their integrity and as a result could negatively impact FCC’s reputation if FCC were to
continue to do business with the Loan Party, or if any Loan Party ceases to operate or operate materially in its Core Business, as determined by FCC in its sole discretion. If FCC terminates this Agreement because any of the above-noted events has
occurred then all Outstanding Obligations are due immediately. 

  
 13 

	 	2.7	 Time and Place of Payment 

The Borrower will make all payments to FCC at its corporate office in Regina, Saskatchewan or at FCC’s local office on the date for
payment. The payment must be made in immediately available funds and made no later than 10:00 a.m. local time at the place of payment. Any payment made after 10:00 a.m. will be deemed to have been made on the following Business Day and interest will
accrue on the amount of such payment to the following Business Day. 
  

	 	2.8	 Payments to be Made on Business Days 

Any payment due on a day that is not a Business Day must be made on the following Business Day unless that day falls in another calendar month,
in which case the payment must be made on the immediately preceding Business Day. 
  

	 	2.9	 Manner of Payment; No Set Off / Right of Compensation 

All payments are to be made without set-off, compensation, withholding or deduction of any kind. If the
Borrower is not in default under this Agreement, FCC will apply each payment to the Advance that has been outstanding for the longest period of time and then progressively to newer outstanding Advances, then in respect of each Advance
(i) firstly to pay outstanding fees and other charges, (ii) secondly to pay the interest due, and (iii) thirdly to reduce the outstanding principal. If the Borrower is in default on any Loan, FCC may apply any Loan payment as it sees
fit. 
  

	 	2.10	 Payment Adjustment 

FCC may adjust the stipulated payments of principal and interest for any Loan with a variable interest rate, as a result of changes in the
interest rate, to ensure that the principal outstanding is being paid as originally intended under this Agreement. 
  

	 	2.11	 Pre-authorized payments

 If the Borrower has pre-authorized payments, the Borrower shall comply with
all requirements to make Loan payments by way of pre-authorized payments. 
  

	 	2.12	 Voluntary Prepayments 

If the Borrower wishes to prepay any outstanding Advances during the term of this Agreement, then to the extent permitted by law, the Borrower
must pay a prepayment charge equal to the greater of (i) three (3) months interest on the amount prepaid at the interest rate in effect on the applicable Advance as of the date of prepayment, and (ii) the amount of interest lost by FCC
over the remaining term of the Advance on the amount being prepaid, as determined in accordance with FCC’s standard practices. 

  
 14 

	 	2.13	 Prepayment Privileges 

(a) Variable-Open and Fixed-Open rate loans – the Borrower may prepay all or a part of the Loans at any time, without notice or
penalty. 
  

	 	2.14	 Extensions 

Extensions may be requested by the Borrower. Extensions will be granted at the sole discretion of FCC. If there is no written agreement in
force extending or altering the terms of the Loan on the applicable balance due date there is no extension and the Loan is due and payable. 

2.15 Payment on demand in the event of misrepresentation, fraud or lack of integrity 

The Credit Facilities and all Indebtedness owing by the Borrower shall be repaid in full and the Credit Facilities will be cancelled if the
Borrower or any Guarantor has made any material misrepresentation to FCC, has committed fraud against FCC, if FCC becomes aware that the Borrower or any Guarantor has acted in a manner that calls into question their integrity and as a result will
negatively impact FCC’s reputation if FCC were to continue to do business with the Borrower or Guarantor or if the Borrower ceases to operate or operate materially in its Core Business, as determined by FCC in its sole discretion. 

 

	3.	 Interest Rates, Fees and Costs 

 

	 	3.1	 Interest Rates 

 

	 	(a)	 Interest will accrue on the principal amount outstanding of each Advance during each monthly interest period;

  

	 	(b)	 Interest on each Advance shall be calculated on the daily outstanding balance of such Advance commencing on and
including the day on which the Advance is made and ending on, but excluding, the day on which the interest is paid; and 

  

	 	(c)	 Interest will be payable monthly, in arrears, on the first Business Day of each month at the variable rate of
interest per annum specified, and calculated in the manner set out in this Agreement. 

  

	 	3.2	 Interest Act 

 

	 	(a)	 Unless otherwise specified, all annual rates of interest referred to in this Agreement are based on a calendar
year of 365 or 366 days, as the case may be. Where a rate of interest under this Agreement is calculated on the basis of a year (the “Deemed Year”) which contains fewer days than the actual number of days in the calendar year of
calculation, that rate of interest will be expressed as a yearly rate for the purposes of the Interest Act (Canada) by multiplying that rate of interest by the actual number of days in the calendar year of calculation and dividing it by the
number of days in the Deemed Year. 

  
 15 

	 	(b)	 For purposes of the Interest Act (Canada), the principle of deemed reinvestment of interest will not
apply to any interest rate calculation under this Agreement, and the rates of interest stipulated in this Agreement are intended to be nominal rates and not effective rates or yields. 

 

	 	3.3	 Maximum Interest Rate 

 

	 	(a)	 In the event that any provision of this Agreement would oblige the Borrower to make any payment of interest or
any other payment which is construed by a court of competent jurisdiction to be interest in an amount or calculated at a rate which would be prohibited by law or would result in a receipt by FCC of interest at a criminal rate (as such terms are
construed under the Criminal Code (Canada)), then notwithstanding such provision, such amount or rate shall be deemed to have been adjusted to the maximum amount or rate of interest as would not be so prohibited by law or so result in a
receipt by FCC of interest at a criminal rate, such adjustment to be effected, to the extent necessary, as follows: 

  

	 	(i)	 firstly, by reducing the amount or rate of interest required to be paid under this Agreement; and

  

	 	(ii)	 thereafter, by reducing any fees, commissions, premiums and other amounts which would constitute interest for
the purposes of Section 347 of the Criminal Code (Canada). 

  

	 	3.4	 Legal Fees and Expenses 

Regardless of whether any or all of the transactions contemplated in the Loans are completed, the Borrower shall pay to FCC all reasonable
legal fees and disbursements and all reasonable fees, costs and out-of-pocket expenses incurred by FCC with respect to the negotiation, preparation and registration of
all documents including, without limitation, amendments of the documents and their registration. The Borrower shall, in addition, reimburse FCC on demand for all fees, cost and
out-of-pocket expenses including, without limitation, legal fees and disbursements (on a solicitor and own client or full indemnity basis) incurred by FCC following the
Closing Date in connection with the exercising or defending of any or all of the rights, recourses, remedies and powers of FCC hereunder or under any other documents or the realization on any assets or property of a Loan Party, or the taking of any
proceedings for the purpose of enforcing the remedies provided herein or permitted in connection herewith. 
 If any Loan Party fails to
perform any of its obligations under any document, FCC may, but shall not be obligated to, perform any or all such obligations, and all costs, charges, expenses, fees, outlays and premiums incurred by FCC in connection with such performance shall be
payable by the Borrower forthwith upon demand by FCC 

  
 16 

 
and shall bear interest from the date incurred by FCC at the highest rate provided for herein, calculated and compounded monthly and payable on demand, with interest on overdue interest at the
same rate. Any such performance by FCC shall not constitute a waiver by FCC of any right, power, or privilege under the Loans or any document. 
  

	 	3.5	 Interest Rate Guarantee 

If a Variable Interest type has been chosen, there is no interest rate guarantee for the related Loan. Each change in FCC’s
Variable Interest Rate shall cause an immediate and automatic adjustment in any variable interest rate applicable under this Agreement, from the effective date of the change, calculated in accordance with FCC’s usual practices, and without
notification to the Borrower. 
  

	 	3.6	 Interest Calculations and Compounding Period 

Interest on each Loan shall be calculated on the daily outstanding balance of such Loan from (and including) the date it is advanced until (but
excluding) the date it is repaid in full. The rates of interest per annum are expressed on the basis of a 365 or 366 day year, as applicable. 
  

	 	3.7	 Convertibility 

 

	 	(a)	 “Conversion Fee” means the fee payable by the Borrower to FCC, in an amount determined by FCC,
to convert the Loan to a different type of product. 

  

	 	(b)	 An Open Variable Real Property Loan may be converted, at any time, upon payment of the Conversion Fee, to any
other available mortgage product offered by FCC. 

  

	 	(c)	 A Variable Mortgage Rate Loan may be converted, at any time, upon payment of the Conversion Fee, to any
mortgage product offered by FCC, except the Open Variable mortgage product. 

  

	4.	 Covenants of the Loan Parties 

 

	 	4.1	 Affirmative Covenants 

Until all Outstanding Obligations are repaid in full and FCC has no further obligation under this Agreement, the Loan Parties must observe and
perform each of the following covenants: 
  

	 	(a)	 Payment of Principal, Interest and Expenses. Pay to FCC the Outstanding Obligations at the times and
places and in the manner provided for in this Agreement. 

  
 17 

	 	(b)	 Use of Funds. Use the proceeds of the Loans solely for agricultural purposes including the uses set out
in this Agreement with respect to the initial Advance and thereafter only for the Core Business, the Borrower’s working capital and Permitted Acquisitions. 

 

	 	(c)	 Maintenance of Property. To keep the Property in good condition and not to do anything that lowers the
value of the Property. If the Borrower does not maintain the Property in good condition, the Borrower agrees that FCC may enter and take any action reasonably considered necessary to restore the Property. Any cost of taking such action may be added
to the Credit Facilities. 

  

	 	(d)	 Books, Records and Financial Statements. Maintain a system of accounting established and administered in
accordance with the Accounting Standards, consistently applied and in accordance with sound business practices. 

  

	 	(e)	 Access and Information. 

 

	 	(i)	 Discuss and review with FCC and its representatives any matters directly relevant to this Agreement and the
business of the Loan Parties or their properties; 

  

	 	(ii)	 Permit representatives of FCC to visit, inspect and have access to their properties and assets with reasonable
prior notice; and 

  

	 	(iii)	 Permit, with reasonable prior notice, FCC and its representatives to examine and copy all of their books and
records. 

  

	 	(f)	 Notices. Promptly notify FCC of: 

 

	 	(i)	 any event which constitutes a Default or Event of Default and the steps being taken to remedy the same;

  

	 	(ii)	 any notice of expropriation of any Collateral; 

 

	 	(iii)	 any claim, proceeding or litigation in respect of any Loan Party that has a Material Adverse Effect on the
business operation or assets of a Loan Party, whether or not any such claim, proceeding or litigation is covered by insurance; 

  

	 	(iv)	 any official notice of any violation, non compliance or claim made by any Governmental Authority that has a
Material Adverse Effect on: (A) the operations of a Loan Party, or (B) any part of the Collateral of any Loan Party; 

  

	 	(v)	 any Lien other than a Permitted Lien registered against any Collateral; 

  
 18 

	 	(vi)	 any environmental matter against or with respect to the activities or operations of any Loan Party;

  

	 	(vii)	 any event, development or condition which may have a Material Adverse Effect; and 

 

	 	(viii)	 any material adverse change in the condition or nature of the Core Business of a Loan Party.

  

	 	(g)	 Corporate Status and Qualification. Maintain its existence in good standing and obtain and maintain all
licences, permits and contracts necessary to conduct its business. 

  

	 	(h)	 Business Conduct. Continuously conduct the Core Business in a proper and efficient manner,
(ii) maintain its properties and assets in good working order and condition, and (iii) maintain, protect and preserve title to its assets and properties. 

 

	 	(i)	 Compliance with Laws. Comply with all Applicable Laws and orders of any Governmental Authority,
including the procurement of all required permits and licenses, which shall include without limitation the procurement of all applicable business, building, expansion, operating and other permits and licenses, and further including intensive
livestock operation permits and compliance with all plans associated with such permit and agreements relating to such permit and the operations of the Borrower’s livestock operations. 

 

	 	(j)	 Further Assurances. Cure promptly any defects in the execution and delivery of the Loan Documents, and
promptly execute and deliver to FCC all such other and further documents or agreements as FCC may reasonably request. 

  

	 	(k)	 Taxes. Pay all Taxes lawfully levied, assessed or imposed upon it or in respect of its Property as and
when the same becomes due and payable, and provide evidence of such payment to FCC. 

  

	 	(l)	 Insurance. 

  

	 	(i)	 The Borrower shall maintain or cause to be maintained with reputable insurers, over the insurable collateral,
coverage against risks of loss or damage to its properties, assets and business (including, but not limited to, fire and extended perils, public liability, and damage to property of third parties) of such types as are customary in the case of
persons with established reputation engaged in the same or similar businesses, to the full replacement value of such properties and assets, such policies (except third-party liability insurance) to contain standard mortgage/hypothec clauses or other
mortgage/hypothec clauses satisfactory to FCC and shall, 

  
 19 

	 	
otherwise than in respect of damage to or destruction of leased assets, assets secured by purchase money liens (where applicable) and such other assets as FCC may in writing agree to exclude, be
assigned to and endorsed in favour of FCC, as first mortgagee/beneficiary and first loss payee subject to ranking pari passu with holders of debt secured by the same collateral pursuant to any intercreditor agreement entered into by FCC with the
holders of such debt (the “Insurance”). 

  

	 	(ii)	 Each insurance policy and insurance company shall be approved by FCC. Each insurance policy must require that
15 days advance written notice shall be given to FCC in the event of any cancellation or material adverse change to the policy. As further security, the Borrower hereby assigns all insurance proceeds to FCC. 

 

	 	(iii)	 All Insurance set forth above shall be in an amount not less than the greater of (A) the Credit
Facilities, and (B) the full replacement value of the Borrower’s properties and assets, or an amount acceptable to FCC per occurrence. 

  

	 	(iv)	 All Insurance, other than those in respect of assets as FCC may in writing agree to exclude, shall be assigned
to and endorsed in favour of FCC as first mortgagee and as first loss payee. FCC shall be named as an additional insured in respect of all liability policies and such policies shall contain cross liability and severability of interest provisions.

  

	 	(v)	 FCC shall be designated as beneficiary on the course of construction insurance and property insurance in
amounts and on terms acceptable to FCC. 

  

	 	(vi)	 All Insurance (except third-party liability insurance) shall contain standard mortgage/hypothec clauses or
other mortgage/hypothec clauses satisfactory to FCC. 

  

	 	(vii)	 All Insurance shall oblige the insurer to provide at least 30 days prior notice to FCC of any changes to the
Insurance and that the Insurance may not be cancelled without at least 30 days prior notice being given by the insurer to FCC. 

  

	 	(viii)	 If any Loan Party defaults in so insuring its real or personal property and assets as are required under this
Section to be insured or, in so delivering the certificates or policies of Insurance within the time period required under this Agreement, FCC may, at its option, immediately effect and pay the premiums for such Insurance and the Borrower shall
reimburse FCC for any premiums so paid with interest thereon at the then highest interest rate payable in respect of any Loan made under this Agreement. 

  
 20 

	 	(ix)	 As soon as practicable following the happening of any loss or damage in respect of any Loan Party’s real
or personal property and assets subject to any Insurance, the Borrower shall, at its expense, furnish all necessary proof and do all necessary acts to enable the Person entitled to receipt of the proceeds of such insurance pursuant to this Section
to obtain payment thereof. 

  

	 	(x)	 All policies of Insurance will, where applicable, contain a release of any subrogation rights which any Loan
Party’s insurers may have against FCC or those for whom any of them are in law responsible. 

  

	 	(xi)	 Each Loan Party agrees that it shall provide FCC with i) a broker’s certificate confirming the Insurance
prior to the Closing Date and ii) a certified copy of each policy of Insurance as soon as practical but no later than 60 days from the Closing Date. 

  

	 	(m)	 Environmental Compliance. 

 

	 	(i)	 Use and operate all of its facilities and properties in compliance with all Environmental Laws;

  

	 	(ii)	 Immediately notify FCC and provide copies upon receipt of any written claim, complaint, notice or inquiry
relating to the release of contaminants at any facility or property which would result in a Loan Party being in material non-compliance with any Environmental Law. A contaminant are any pollutants, waste,
hazardous substances or other like substances or material that is regulated by any Environmental Law; 

  

	 	(iii)	 Maintain a reserve on its books for environmental liabilities in accordance with Accounting Standards; and

  

	 	(iv)	 Provide such information and certifications which FCC may reasonably request from time to time to evidence
compliance with this Section. 

  

	 	(n)	 Observance of Agreements. Observe, perform and enforce in a timely fashion all of its contractual
obligations and rights. 

  

	 	(o)	 Additional Subsidiaries; Additional Liens. If, at any time after the Closing Date, any Loan Party
directly or indirectly creates or acquires an additional Subsidiary, the Loan Party will, or will cause such new Subsidiary, to execute and deliver to FCC within 30 days of such creation or acquisition, a guarantee, security agreements (creating a
first priority Lien against all property, assets and undertaking of such Subsidiary in favour of FCC), and other agreements, instruments, documents, certificates, resolutions and legal opinions similar in type, scope and form as those delivered by
the Loan Parties pursuant this Agreement and satisfactory to FCC. 

  
 21 

	 	(p)	 Material Commercial Leases. Obtain FCC’s prior written consent to enter into, modify in any
material respect, or renew, extend or terminate any lease (excluding any lease where the Loan Party is the tenant) for premises of more than 10,000 square feet for a term (inclusive of all renewal and extension options, whether or not exercised) of
5 years or more which form part of the Collateral. 

  

	 	(q)	 Release Information. The Borrower must authorize FCC to obtain credit or other information about the
Borrower, and the Collateral from, and to allow FCC to, during the term of the Credit Facilities, exchange such information with: 

  

	 	(i)	 any financial institution, credit reporting agency, rating agency, credit bureau, Governmental Authority; and

  

	 	(ii)	 anyone with whom the Borrower may have or propose to have financial dealings. 

The Borrower also agrees that FCC may use Loan information for FCC’s internal research and marketing purposes and that FCC may contact
the Borrower regarding our other products and services 
  

	 	4.2	 Negative Covenants 

Until the Outstanding Obligations are repaid in full and FCC has no further obligation under this Agreement, the Loan Parties must not, without
the prior written consent of FCC: 
  

	 	(a)	 No Amalgamation or Merger. Not enter into any amalgamation, merger, or other transactions whereby all or
substantially all of its undertaking, properties, rights or assets would become the property of any other Person. 

  

	 	(b)	 Indebtedness. Create, assume or permit to exist any Indebtedness except for Permitted Indebtedness.

  

	 	(c)	 No Liens. Create, assume, incur or permit to exist any Lien in or upon any of its property or assets
except for Permitted Liens. 

  

	 	(d)	 No Guarantees. Be or become liable for any obligation of any other Person by Guarantee except for any
Guarantee which constitutes Permitted Indebtedness. 

  
 22 

	 	(e)	 No Non-Arm’s Length. Enter into any consulting agreement or
contract with a shareholder or other non-arm’s length party or entity unless on prevailing market rates and the Borrower discloses all such related party contracts and expenses annually as part of the
annual review documentation. 

  

	 	(f)	 Limitation on Investments and Loans. Make or permit to exist, directly or indirectly, any Investment or
any other interest in any other Person except: (i) Investments in cash equivalents, (ii) Investments which constitute Permitted Acquisitions, and (iii) any loans, advances or other forms of Indebtedness to any Person other than
Permitted Indebtedness. 

 “Investment” means: 

 

	 	(i)	 any direct or indirect purchase or other acquisition by the investor of Equity Securities of any other Person
that does not otherwise constitute an Acquisition; 

  

	 	(ii)	 any direct or indirect loan or capital contribution by the investor to any other Person; or

  

	 	(iii)	 any direct or indirect purchase or other acquisition of bonds, notes, debentures or other debt securities of,
any other Person. 

  

	 	(g)	 Limitation on Acquisitions. Make any Acquisition other than a Permitted Acquisition.

  

	 	(h)	 Limitation on Sale of Assets. Effect a sale of assets, including Quota Transfer, except for a Permitted
Sale of Assets. A Permitted Sale of Assets must be sold or leased for at least fair market value and if proceeds are not used within six (6) months to acquire other assets for Core Business, proceeds will be applied to reduce the Outstanding
Obligations. 

  

	 	(i)	 Change of Jurisdiction or Chief Executive Office; Relocation of Assets. 

 

	 	(i)	 Change the jurisdiction of organization or move its registered office, principal place of business or chief
executive office outside of the jurisdiction in which it was located as at the Closing Date or the date of its acquisition or creation; and 

  

	 	(ii)	 Maintain Collateral having a value in excess of $100,000 in the aggregate other than as disclosed in this
Agreement as at the Closing Date. 

  

	 	(j)	 Organizational Documents. 

 

	 	(i)	 Change its corporate name, or 

  
 23 

	 	(ii)	 Amend its articles of incorporation, partnership agreement, shareholders agreement or similar document without
the prior written consent of FCC. 

  

	 	(k)	 Change of Control. Change of control of a Loan Party being any one of the following:

  

	 	(i)	 the acquisition by any Person of Equity Securities representing 50% or more of the voting power represented by
the issued and outstanding Equity Securities of any Loan Party; 

  

	 	(ii)	 the Borrower ceases to own, directly or indirectly, all of the issued and outstanding Equity Securities of any
other Loan Party; or 

  

	 	(iii)	 there is any change in the composition of the officers or directors of any Loan Party from those (i) in
existence as at the Closing Date, or (ii) Persons which have been approved in writing by FCC from time to time after the Closing Date. 

  

	 	(l)	 Restricted Payments. Declare, pay or make, or permit the declaration, payment or making of, any
Restricted Payment, except each Loan Party may make Restricted Payments: 

  

	 	(i)	 with respect to (A) employment remuneration to employees, officers or directors in the ordinary course,
and (B) reimburse reasonable out-of-pocket costs and expenses incurred by such employees, officers or directors in the ordinary course of carrying out their duties;
and 

  

	 	(ii)	 regular scheduled payments of interest in respect of Subordinated Debt provided that, at the time of and
immediately after making a Restricted Payment, (A) no Default or Event of Default has occurred; and (B) the Borrower is in compliance with the financial covenants set out in this Agreement, 

provided that the Restricted Payments listed in paragraphs 4.2(j) (i) and (ii) above shall not be in excess of net income after repayment
of the current outstanding of any long term debt, including the principal portion of capital lease payments, unless compliance with the financial covenants set out in this Agreement are maintained. 

A “Restricted Payment” means any payment by a Person to a related party, including a shareholder or creditor, for any reason,
including without limitation payment of: (a) any dividends or other distributions on any of its Equity Securities, (b) any management, consulting or similar fee or any bonus payment or comparable payment, (c) any gift or other
gratuity, (d) any amount for services rendered, property leased or acquired, or (e) any amount for shareholder loan reductions. 

  
 24 

	 	(m)	 Financial Year; Accounting Changes. Change its Financial Year end, or (ii) accounting treatment or
reporting practices, except as required by the Accounting Standards or any Applicable Law. 

  

	 	(n)	 Change of Business: Materially change the Core Business of any one of the Loan Parties.

  

	 	(o)	 Transactions with Affiliates. Purchase or lease any property from, or sell or lease any property to, or
enter into any other transactions with, any officer, director, agent or other Person affiliated with or related to such Loan Party, except in the ordinary course of, and under the reasonable requirements of, the Loan Party’s business, and upon
fair and reasonable terms no less favourable to the Loan Party than they would obtain in a comparable arm’s length transaction with an unaffiliated Person. 

 

	 	(p)	 Sales and Leasebacks. Enter into any sale/leaseback transaction, which is any arrangement with any
Person (other than a Loan Party) providing for the leasing by any Loan Party of property which has been or is to be sold or transferred by any Loan Party to such other Person. 

 

	 	(q)	 Repayment of Indebtedness. Repay, prepay or otherwise make any payment on account of any Indebtedness
except for: (i) Indebtedness under this Agreement, or (ii) Permitted Indebtedness. 

  

	 	(r)	 Drawings and Withdraws. The Borrower shall not permit drawings and withdrawals by way of shareholder
loan reductions, dividends, salaries, bonuses, or any other withdrawals to exceed net income after repayment of current portion of long term debt, including principal portion of capital lease payments, unless compliance with financial covenants set
out in the loan contract are maintained. 

  

	5.	 Demand and Acceleration 

 

	 	5.1	 Events of Default. 

Each of the following events will constitute an event of default by the Loan Parties under this Agreement (each an “Event of
Default”): 
  

	 	(a)	 Failure to Pay Principal. Failure to pay when due any principal amount of the Outstanding Obligations
and such failure continues for a period of three (3) Business Days. 

  

	 	(b)	 Failure to Pay Interest or Fees. Failure to pay any other Outstanding Obligations when due and such
failure continues for a period of five (5) Business Days. 

  

	 	(c)	 Sale of Property. If the Borrower sells any property, with a value in excess of $100,000.00, or any
Guarantor sells any such property pledged as security for a guarantee, without FCC’s written consent, except in the ordinary course of business. 

  
 25 

	 	(d)	 Builder’s Lien. A builders, construction, commercial, mechanic or similar Lien is registered
against the Borrower’s property secured by this Agreement, other than those that are contested in good faith. 

  

	 	(e)	 Construction Required. Failure to complete or proceed with any construction required by this Agreement
in a continuous and commercially reasonable manner and according to proper building standards. 

  

	 	(f)	 False Representations. If any representation or warranty made in any Loan Document is false or
materially incorrect, or lacking in any material facts, at the time that it is made or given. 

  

	 	(g)	 Covenant Defaults. Failure to observe or perform any of the terms, conditions or covenants under this
Agreement or contained in any other Loan Document, and, if such failure is capable of being remedied it continues unremedied for a period of 30 Business Days following the earlier of (i) the date upon which a senior officer of any Loan Party
becomes aware of any such failure, and (ii) the date that FCC delivers notice of such failure to the Borrower. 

  

	 	(h)	 Default to Other Creditors. Default under the terms of any credit facility with any other financial
institution. 

  

	 	(i)	 Cross-Default with FCC. Default under any other credit facility, loan or security agreement with FCC and
such default continues for ten (10) Business Days. 

  

	 	(j)	 Insolvency. If any Loan Party becomes insolvent, dies, its business ceases to be carried out as a going
concern, an order is made or it passes a resolution authorizing its winding-up, dissolution or liquidation, or it assigns its assets for the benefit of its creditors or enters (voluntarily or involuntary) any
bankruptcy or reorganization proceeding, and if such proceeding is involuntary it is not stayed within 60 days or having been instituted against the Loan Party. 

 

	 	(k)	 Receivership. If any person or entity other than FCC takes possession of any of the secured property
(whether by appointment of a receiver, receiver and manager or otherwise) or takes any steps to repossess or sell the secured property. 

  

	 	(l)	 Adverse Judgments. If one or more judgments for the payment of money in a cumulative amount in excess of
$100,000 is rendered against any one or more of the Loan Parties which remains undischarged for 60 days from its date. 

  
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	 	(m)	 Execution, Distress. If any writ of execution or any other similar process becomes enforceable against
any Loan Party or its properties or assets having a fair market value in excess of $100,000, except where the same is being contested and the enforcement or levy has been stayed. 

 

	 	(n)	 Change of Control. If there is a change of control, which is the occurrence of any one of the following:

  

	 	(i)	 the acquisition by any Person of Equity Securities representing 50% or more of the voting power represented by
the issued and outstanding Equity Securities of any Loan Party; 

  

	 	(ii)	 the Borrower ceases to own, directly or indirectly, all of the issued and outstanding Equity Securities of any
other Loan Party; or 

  

	 	(iii)	 there is any material change in the composition of the officers or directors of any Loan Party from those
(i) in existence as at the Closing Date, or (ii) Persons which have been approved in writing by FCC from time to time after the Closing Date. 

  

	 	(o)	 No Prospect of Repayment. FCC in good faith and upon commercially reasonable grounds, believes that the
prospect of repayment of the Loans or performance of the Borrower’s obligations under this Agreement is or is about to be impaired or any of the secured property is or is about to be in jeopardy. 

 

	 	(p)	 Cease to Carry On Business. Any one of the Loan Parties ceases to carry on business or threatens to do
so. 

  

	 	(q)	 Registration of Subsequent Interest. A mortgage, hypothec, security interest or any other interest,
right or charge affecting the Property is registered against the Property without FCC’s prior approval not to be unreasonably withheld. 

  

	 	(r)	 Termination or Unenforceability of Security Documents. If any of the Loan Parties terminate any of the
Security Documents or any of the Security Documents become unenforceable or any charge does not rank in priority as expected. 

  

	 	5.2	 Notice of Default. The Borrower hereby agrees to promptly notify FCC of an Event of
Default occurring, and no later than thirty (30) days from the date that the Default occurred. 

  
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	 	5.3	 Rights and Remedies 

 

	 	(a)	 Prior to and after the occurrence of an Event of Default, FCC or a Receiver shall have, in addition to the
rights specifically provided in this Agreement: 

  

	 	(i)	 the rights of a secured party under the Personal Property Security Act; and 

 

	 	(ii)	 the rights that FCC shall be entitled to as the lender, as recognized at law and in equity.

  

	 	(b)	 Upon the occurrence of an Event of Default, and for so long as it is continuing, FCC may take any or all of the
following actions: 

  

	 	(i)	 declare all Outstanding Obligations to be immediately due and payable without presentment, demand, protest or
other notice of any kind; 

  

	 	(ii)	 declare the Credit Facilities to be terminated, whereupon the same shall terminate immediately and FCC shall
have no further obligation to make any Advances available to the Borrower under any of the Credit Facilities; 

  

	 	(iii)	 realize upon the Liens constituted by the Security Documents and exercise any rights under any of the Loan
Documents; 

  

	 	(iv)	 appoint by instrument in writing or apply to a court for the appointment of one or more Receivers of any or all
of the property, assets and undertaking of any Loan Party or any or all of the Collateral; 

  

	 	(v)	 exercise any other action, suit, remedy or proceeding authorized or permitted by the Loan Documents or by law
or by equity upon an Event of Default occurring; 

  

	 	(vi)	 the obligation of FCC to make any further Advances available to the Borrower shall automatically be terminated;

  

	 	(vii)	 all Outstanding Obligations will automatically become due and payable; and 

 

	 	(viii)	 the Security Documents will become immediately enforceable, subject to the terms and conditions of the Security
Documents and Applicable Law, and FCC may realize upon the Security Documents. 

  

	 	5.4	 Application of Proceeds After Default 

From and after the occurrence of an Event of Default, FCC may from time to time appropriate all monies realized by FCC from the enforcement of
any Security Document on or towards the payment of the Indebtedness of the Borrower to FCC or such part thereof as FCC in its sole discretion may determine, and the Borrower shall have no right to require or enforce any appropriation inconsistent
therewith, and FCC shall have the right to change the application of any such proceeds and re-apply the same to any part or parts of the Indebtedness as FCC may see fit notwithstanding any previous
application. 

  
 28 

	 	5.5	 Non-Merger 

The taking of a judgment (other than a final order of foreclosure) or any other action by FCC in respect of any Lien created by the Security
Documents shall not operate as a merger of any Indebtedness or liability of any Loan Party or in any way prejudice the rights, remedies and powers which FCC may have in connection with such liabilities, and the dealings with any security for such
liabilities shall not affect the liability of the Loan Parties under this Agreement. 
  

	 	5.6	 Deficiency 

Each Loan Party is liable to FCC for payment of any Outstanding Obligations that remain outstanding following realization of all or any part of
the Collateral. 
  

	 	5.7	 FCC not Liable 

Neither FCC nor any Receiver will be liable to any Loan Party for any failure or delay in exercising any of its rights under any Loan Document
or for any failure to preserve rights against other Persons. 
  

	 	5.8	 Remedies Cumulative 

The rights and remedies of FCC under the Loan Documents are cumulative and are in addition to and not in substitution of any rights or remedies
provided by law and any single or partial exercise by FCC of any right or remedy for a default or breach shall not be deemed to be a waiver of or to prejudice any other right or remedy to which FCC may be lawfully entitled. 

 

	6.	 Representations and Warranties 

 

	 	6.1	 Representations and Warranties 

The Loan Parties make the following representations and warranties to FCC, upon which FCC is relying in entering into this Agreement: 

 

	 	(a)	 Due Incorporation. Each Loan Party is duly incorporated or formed under the laws of its jurisdiction,
and has all necessary corporate power and authority to own its properties and assets and to carry on its business as now conducted by it. 

  

	 	(b)	 Corporate Power; Authorization. Each Loan Party has the power and authority to enter into and perform
its obligations under the Loan Documents to which it is a party and the execution, delivery and performance of such Loan Documents has been duly authorized by all necessary action of such Loan Party. 

  
 29 

	 	(c)	 Licenses. Each Loan Party holds all necessary licenses, permits, registrations, and approvals
(i) to own its properties and assets, (ii) for the conduct and operation of the Core Business and its other businesses, and (iii) to carry on its businesses in each jurisdiction in which it does so, and is up to date in all its
corporate filings. 

  

	 	(d)	 No Conflicts. The execution, delivery and performance of the Loan Documents by each Loan Party and the
consummation of the transactions contemplated therein: 

  

	 	(i)	 do not and will not violate its constating documents, by-laws or other
organizational documents; 

  

	 	(ii)	 do not require the consent or approval of, or registration or filing with, any Governmental Authority or other
Person; and 

  

	 	(iii)	 do not violate or conflict with any material contract. 

 

	 	(e)	 Enforceability. Each Loan Document constitutes a legal, valid and binding obligation of each Loan Party
enforceable in accordance with its terms. 

  

	 	(f)	 Compliance with Law. Each Loan Party is in compliance: (i) with all Applicable Laws applicable to
it or its property, assets and businesses, and (ii) with all material contracts binding upon it or its property, assets and businesses; and (ii) with all zoning and building by-laws and other
Applicable Laws with respect to the Collateral. 

  

	 	(g)	 Taxes. Each Loan Party has filed all tax returns required to be filed by it and has paid all Taxes which
were due and payable, on or before the date of this Agreement. 

  

	 	(h)	 No Litigation, Convictions or Investigations Related to Fraud. There are no actions, suits or
proceedings existing or pending against any Loan Party in any court or before any Governmental Authority. No Loan Party has been convicted of a criminal offence (except for a conviction for which a pardon has been granted. No Loan Party has
undergone any type of investigation or been accused or convicted of any offence related to fraud, money laundering or terrorist financing. 

  

	 	(i)	 Financial Statements. The financial statements of the Loan Parties which have been furnished to FCC have
been duly prepared in accordance with the Accounting Standards and fairly present the financial condition and the results of the operations of the Loan Parties. Any financial information the Loan Parties have provided to FCC, in any form, is
complete, current and accurately presents the Borrower’s financial position as of the date it is provided, and there has been no material adverse change in the Borrower’s business or financial condition or any material adverse change has
been immediately disclosed to FCC. 

  
 30 

	 	(j)	 Factual Information. All factual information provided by each Loan Party to FCC for any purpose in
connection with this Agreement is true, complete and accurate in every material respect, as of the date thereof, and that information is not incomplete by the omission of any material fact necessary to make that information not misleading.

  

	 	(k)	 Title. Each Loan Party has good and marketable title to all of its property and assets free and clear of
any Lien, subject only to Permitted Liens. 

  

	 	(l)	 No Default. The Borrower is not in default of (i) any other agreement for a credit facility or debt
instrument with FCC or any other financial institution or (ii) under any material contracts that affect the Borrower’s business or assets. 

  

	 	(m)	 Environmental Compliance 

 

	 	(i)	 All facilities and property owned or leased by any Loan Party subject to the Security Documents have been
maintained in material compliance with all Environmental Laws; 

  

	 	(ii)	 there have been no past, and there are no pending written claims of violation or requests for information
received by any Loan Party from any Governmental Authority with respect to any Environmental Law; 

  

	 	(iii)	 each Loan Party holds and is in compliance with all permits, approvals and other authorizations relating to
environmental matters in connection with the operation of the Core Business; and 

  

	 	(iv)	 there are no underground storage tanks, active or abandoned, on any property now or previously owned or leased
by any Loan Party including the Property subject to the Security Documents. 

  

	 	(n)	 Registered Office; Chief Executive Office. The registered office, chief executive office and the
principal place of business of each Loan Party is the location set out on the first page of this Agreement. 

  

	 	(o)	 Location of Property and Assets. The Loan Parties have no property and assets located in any
jurisdictions other than as disclosed in writing to FCC. 

  

	 	(p)	 Wholly-owned Subsidiaries. As of the Closing Date no Loan Party has (i) any Subsidiaries other than
those Subsidiaries that are a party to this Agreement, or (ii) entered into any agreements for the acquisition or creation of any Subsidiaries. 

  
 31 

	 	(q)	 Partnership. No Loan Party is in partnership with any Person and no Loan Party is a participant in any
joint venture. 

  

	 	(r)	 Employee Matters. No Loan Party, nor any of their respective employees, is subject to any collective
bargaining agreement. 

  

	 	(s)	 Pension and Benefit Plans. No Loan Party maintains any pension plans or other plan or policy that
provides employee benefits. A pension plan is any arrangement for the purposes of applicable pension benefits legislation or any tax laws of Canada or a province. A pension plan does not include the Canada pension plan or the Quebec pension plan.

  

	 	(t)	 Full Disclosure. Each Loan Party has disclosed to FCC: (i) all agreements, instruments and
corporate or other restrictions to which any Loan Party is subject, and (ii) all other matters known to it, that, in each case, individually or in the aggregate, could, by their existence or if breached by any Loan Party, reasonably be expected
to result in a Material Adverse Effect. All material liabilities of the Loan Parties have been recorded in the financial statements of the Loan Parties and disclosed to FCC. 

 

	 	(u)	 Indebtedness; Liens. No Loan Party (i) has any Indebtedness other than Permitted Indebtedness, and
(ii) has granted any Liens other than Permitted Liens. 

  

	 	(v)	 Shareholder Loans. There are no outstanding loans and advances made to any Loan Party by any Person who
does not deal at arm’s length with any Loan Party, other than a shareholder of any Loan Party who has executed and delivered an assignment and postponement of claim in favour of FCC. 

 

	 	(w)	 Financial Year. The Financial Year end of the Borrower is December 31. 

 

	 	6.2	 Restatement and Survival of Representations and Warranties 

The representations and warranties of the Loan Parties set out in this Agreement and the other Loan Documents are deemed to be restated at the
time of each Advance, and shall survive each Advance and continue until all Outstanding Obligations have been satisfied and repaid in full and the Credit Facilities terminated. 

 

	7.	 Indemnities 

  

	 	7.1	 Indemnities 

 

	 	(a)	 The Loan Parties shall at all times indemnify and hold FCC and its directors, officers, employees and agents
harmless against and from any and all claims, liabilities, suits, actions, debts, damages, costs, losses, obligations, judgments, charges, and expenses, of any nature whatsoever suffered or incurred by any such party (including any reasonable costs
and expenses of defending or denying same) under or on account of any (i) failure of the Borrower to pay any amount due under this Agreement on its due date; (ii) Event of Default or breach of any Environmental Law. 

  
 32 

	 	(b)	 The Borrower acknowledges that FCC has agreed to make the Credit Facilities available in reliance upon the Loan
Parties’ indemnity in this Section. For this reason, it is the intention of the Loan Parties and FCC, that the provisions of this Section shall supersede any other provisions of this Agreement or any other Loan Document which might in any way
limit the liability of the Loan Parties. 

  

	 	7.2	 Survival 

The obligations of the Loan Parties under this Section survive the payment of all Outstanding Obligations and the cancellation of the Credit
Facilities. 
  

	8.	 Assignment and Participation 

 

	 	8.1	 Benefit of Agreement 

This Agreement shall enure to the sole benefit of and be binding upon the parties hereto and their respective successors and assigns, heirs,
estate, executors and personal representatives, as applicable. 
  

	 	8.2	 Assignment by Loan Parties 

No Loan Party may assign or transfer any rights or obligations hereunder without the prior written consent of FCC which may be refused in the
absolute discretion of FCC. 
  

	 	8.3	 Assignment by FCC 

From time to time FCC may sell or assign all or any part of its rights under this Agreement to a financial institution resident in Canada and
FCC shall be released and discharged from its obligations hereunder. For the purposes of any such assignment FCC may disclose on a confidential basis to a potential assignee such information about any Borrower or Guarantor as FCC may see fit. The
Borrower must agree to execute and deliver, and to cause the Guarantor to execute and deliver, at the request and expense of FCC, such deeds, documents, instruments, and assurances as FCC may reasonably request in connection with any such
assignment. 

  
 33 

	9.	 Miscellaneous 

 

	 	9.1	 Performance by FCC 

If any Loan Party fails to perform any of its obligations under any Loan Document, FCC may, but shall not be obligated to, perform any or all
such obligations, and all costs, charges, expenses, fees, outlays and premiums incurred by FCC in connection with such performance shall be payable by the Borrower forthwith upon demand by FCC and shall bear interest from the date incurred by FCC at
the highest rate provided for in this Agreement calculated and compounded monthly and payable on demand, with interest on overdue interest at the same rate. Any such performance by FCC shall not constitute a waiver by FCC of any right, power or
privilege under the Agreement or any other document. 
  

	 	9.2	 Notice 

Any notice, request or other communication hereunder to any of the parties shall be in writing and be well and sufficiently given if delivered
personally or sent by prepaid registered mail to its address or by facsimile/telecopier to the number and to the attention of the person set forth below: 
  

	 	(a)	 In the case of any Loan Party or Loan Parties, a single notice to the address first above written in this
Agreement. 

  

	 	(b)	 In the case of FCC: 

Farm Credit Canada 
 Loan
Administration Centre 
 12040 149th Street NW, 2nd Floor 
 Edmonton, AB T5V 1P2 

Fax No 780.495.5665 
  

	 	9.3	 Statements and Reports 

All statements, reports, certificates, opinions, appraisals and other documents or information required to be furnished to FCC by the Borrower
under this Agreement shall be supplied by the Borrower without any cost or expense to FCC. 
  

	 	9.4	 Severability 

If any provision of this Agreement is or becomes invalid or unenforceable, the remainder of this Agreement shall not be affected by such
invalidity or unenforceability. 
  

	 	9.5	 Time of Essence 

Time is of the essence of this Agreement and any forbearance by FCC or any of the Loan Parties of the strict application of this provision
shall not operate as a continuing or subsequent forbearance. 
  

	 	9.6	 Further Assurances 

Each Loan Party will upon the reasonable request of FCC, make, do, execute, and deliver such further acts, documents or assurances, as may be
necessary in the opinion of FCC, acting reasonably, for implementing and carrying out the true intent and meaning of this Agreement. 

  
 34 

	 	9.7	 Replacement 

This Agreement supersedes and replaces all prior discussions, letters and credit agreements (if any) describing the terms and conditions of any
credit facilities established by FCC in favour of the Borrower. 
  

	 	9.8	 Canadian Currency 

All Credit Facilities have been made in Canadian dollars and the Borrower agrees to pay FCC in Canadian dollars unless otherwise agreed to in
writing by FCC. 
  

	 	9.9	 Entire Agreement 

This Agreement contains the entire understanding of the parties with respect to its subject matter. There are no restrictions, agreements,
promises, warranties, covenants or undertakings made by FCC or any of the Loan Parties other than those set forth in the Loan Documents. 
  

	 	9.10	 Conflict 

In the event of any conflict or inconsistency between the provisions contained in this Agreement and the provisions contained in any other Loan
Document, then the provisions of this Agreement shall prevail. 
  

	 	9.11	 Counterparts; Execution 

This Agreement may be executed in any number of counterparts or by facsimile or PDF electronic counterparts, each of which shall be deemed to
be an original and all of which taken together shall be deemed to constitute one and the same instrument. 
  

	 	9.12	 Relationship to Parties 

The provisions contained in this Agreement shall not create or be deemed to create any relationship as between the Borrower and FCC other than
that of borrower and lender or as between a Guarantor and FCC other than that of guarantor and lender. 
  

	 	9.13	 Amendments and Waivers 

 

	 	(a)	 This Agreement may not be amended or modified in any respect except in accordance with the provisions hereof,
however, the Borrower hereby agrees to make such amendments to this Agreement as may be reasonably requested by FCC to facilitate the granting by FCC of participations or assignments, provided that no such amendment shall have the effect of
increasing any costs payable by the Borrower or increasing the obligations of the Borrower under this Agreement. 

  
 35 

	 	(b)	 No failure or delay, on the part of FCC, in exercising any right or power hereunder or under any Security
Documents or any other Loan Document delivered to FCC shall operate as a waiver thereof. Each Guarantor, if applicable, agrees that the waiver of any provision of this Agreement may be made without the consent of any Guarantor.

  

	 	9.14	 Review 

FCC shall conduct an annual review within 180 days following the fiscal year-end of the Borrower, and
otherwise as FCC may require in its discretion. The Loan Parties agree to deliver to FCC such information as FCC may request to satisfactorily complete the annual review. For all Loans, any default may result in, but not limited to, future Advances
being restricted, an adjustment of interest rate, fees being charged or a change in the repayment terms of the Loans. 
  

	 	9.15	 Borrower Confidentiality 

The Borrower agrees to keep the terms of this Agreement, including specifically the interest rate, strictly confidential and will not disclose
the terms of this Agreement to any Person without FCC’s prior consent. The Borrower may disclose the terms of this Agreement to its legal, banking, accounting and business advisors on a need to know basis. The Loan Parties authorize FCC to
obtain credit or other information about the Loan Parties and the Collateral, as well as exchange such information with: 
  

	 	(i)	 any financial institution, credit reporting agency or bureau rating agency, or Governmental Authority; and

  

	 	(ii)	 anyone with whom the Loan Parties may have or propose to have financial dealings. The Loan Parties agree that
FCC may use Loan information for FCC’s internal research and marketing purposes and that FCC may contact the Loan Parties regarding FCC’s other products and services. 

 

	 	9.16	 FCC Confidentiality 

FCC agrees to use reasonable efforts to ensure that any financial statement or other information relating to the business, assets or condition,
financial or otherwise, of any Loan Party which is delivered to FCC pursuant to this Agreement which is not publicly filed or otherwise made available to the public generally (and which is not independently known to FCC) will, to the extent
permitted by law, be treated confidentially by FCC and will not, except with the consent of the Loan Party, be distributed or otherwise made available by FCC to any Person other than FCC’s employees, authorized agents, counsel or other
representatives required, in the opinion of FCC, to have such information. 

  
 36 

	 	9.17	 Evidence of Debt 

FCC shall maintain accounts and records evidencing the Outstanding Obligations. FCC’s accounts and records shall constitute conclusive
evidence of the Outstanding Obligations in the absence of manifest error. 
  

	 	9.18	 Joint and Several Liability 

The Loan Parties are jointly and severally liable for and obligated to repay all Outstanding Obligations. Each Loan Party acknowledges that it
is fully responsible for all such Outstanding Obligations even though it may not have requested an Advance or received any proceeds from any Advance. 
  

	 	9.19	 Words and Phrases 

Where the context so requires, words importing the singular include the plural, and vice versa, and words importing gender include the
masculine, feminine, and neuter genders. 
  

	 	9.20	 Headings and Table of Contents 

The table of contents and the headings of all articles, sections, and paragraphs herein are inserted for convenience of reference only and do
not affect the interpretation of this Agreement. 
  

	 	9.21	 Accounting Practices 

In the event of any change in the Accounting Standards after the Closing Date, which results in a material change in the method of calculation
of any financial covenant, or ratio, the Borrower and FCC will negotiate in good faith to revise such financial covenant, or ratio to correspond to the original intention of the parties. 

 

	 	9.22	 Statutory References 

References herein to any statute means such statute as amended, re-enacted and/or consolidated from
time to time and any successor statute thereto. 
  

	 	9.23	 Account Review and Right to Amend 

Loans may be reviewed periodically. For all loans, any default may result in, but not be limited to, future disbursements being restricted, an
adjustment of interest rate, fees being charged or a change in the repayment terms of the loans. 
  

	 	9.24	 Customer Declaration 

FCC acts with integrity, balancing business decisions with individual needs to achieve FCC’s vision of sustainable growth and prosperity
for Canada’s agriculture industry. 

  
 37 

 FCC is committed to supporting the industry over the long-term and through all cycles. FCC
works with customers to understand the material issues that they face and to help them identify and resolve issues in a way that generates a positive impact on society while minimizing the risks associated with their business. 

FCC’s committed partnership begins with complete disclosure on all aspects of the Borrower’s business. 

FCC lends only to individuals or businesses with integrity who respect and adhere to applicable municipal bylaws, provincial and federal laws
and regulations, who hold all permits and licenses required by law, and whose activities respect and care for: 
  

	 	(a)	 the environment by exercising reasonable care to safeguard the environment through stewardship of land, air
quality, and water; 

  

	 	(b)	 animal welfare through application of the National Farm Animal Care Council (NFACC) Codes as a foundation for
animal care; 

  

	 	(c)	 labour standards by upholding requirements set through Canada’s labour laws including for seasonal
workers; and willfully violate employee or human rights; and 

  

	 	(d)	 in general, society and human rights. 

FCC does not lend to individuals or businesses who: 
  

	 	(a)	 willfully neglect applicable operating laws and regulations; 

 

	 	(b)	 engage in any money laundering activities or are involved in financing terrorist activities; or

  

	 	(c)	 are involved in illegal or other activities that could harm FCC’s reputation and/or do not align with
FCC’s expressed commitment to sustainability. 

 The Borrower must disclose in writing to FCC if they: 

 

	 	(a)	 anticipate or are involved in any legal action, or any proceedings before any court, tribunal, board or agency
or there are any unexecuted judgments rendered against them; 

  

	 	(b)	 are in default under any material contracts that affect their business or assets; 

 

	 	(c)	 have declared bankruptcy (discharged or undischarged) or have been the subject of other insolvency proceedings
or proposals; 

  
 38 

	 	(d)	 have been in arrears in the payment of income, business or property taxes, GST, HST, sales tax, payroll
deductions, or similar payment obligations; 

  

	 	(e)	 have been convicted of a criminal offence (except for a conviction for which a pardon has been granted);

  

	 	(f)	 have undergone any type of investigation or have been accused or convicted of any offense related to fraud,
money laundering or terrorist financing; or 

  

	 	(g)	 are aware of any of their directors, officers, shareholders, or partners being involved in any of the preceding
issues, as applicable. 

 If the Borrower fails to conduct its business in line with the integrity commitments and required
disclosures set out above, FCC may consider this to be an Event of Default or cause to end any contractual relationship between the borrower and FCC. Specifically, FCC may decline to provide further financial services or make any further loan
disbursements, terminate their loan(s), demand immediate repayment of any outstanding loan balance or other amount due by the Borrower, or enforce FCC’s interest in any property pledged to secure their loan. 

By executing this Agreement, the Borrower: 
  

	 	(a)	 has read and affirms the integrity declaration; 

 

	 	(b)	 consents to FCC’s collection, use, and disclosure of its personal information in the manner and for the
purposes described above; and 

  

	 	(c)	 knows of no reason FCC may have any concern with its business 

  
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 Schedule B – Loan Specific Features 

Loan [***] is an Open Variable Mortgage Rate Loan. 
 The
interest rate applicable to Loan [***] will be FCC’s Variable Mortgage Rate, (plus 4.55%) as established from time to time, during the term of this Loan which matures on the Maturity Date. Interest will begin accruing at the Variable Rate upon
first disbursement of any portion of this Loan. 
 The Variable Mortgage Rate is currently (4.95%) per annum but may change from time to time without prior
notice to the Borrower. The Borrower agrees that FCC’s publication of its Variable Mortgage Rate in its offices shall be conclusive and binding between the parties to determine the rate of interest applicable to the New Credit Facility. 

  
 40 

 Schedule C – Definitions 

In this Agreement, the following terms have the meanings set out below: 

“Accounting Standards” means Canadian generally accepted accounting principles as set forth in Parts I or II of the CPA Canada Handbook -
Accounting of the Chartered Professional Accountants of Canada. 
 “Acquisition” means any transaction, or any series of related
transactions, after the Closing Date, by which any Loan Party, directly or indirectly: 
  

	 	(a)	 acquires any business or substantially all of the property and assets of any Person engaged in any business; or

  

	 	(b)	 acquires Control of a Person. 

“Advance” means an advance under any Credit Facility by FCC. 

“Affiliate” means with respect to any Person, any Person which, directly or indirectly, Controls or is Controlled by or is under common
Control with that Person. 
 “Applicable Law” means (i) any domestic or foreign statute, law, regulation, restriction or bylaw,
(ii) any regulatory policy, practice, guideline or directive, or (iii) any authorization, permit or other approval of any Governmental Authority. 

“ATB” means ATB Financial. 

“BMO” means Bank of Montreal. 

“Business Day” means any day other than Saturday or Sunday, on which FCC’s corporate office in Regina, Saskatchewan, is open for normal
business. 
 “Closing Date” has the meaning in Section 2.3 of this Agreement. 

“Collateral” means all real and personal property now owned or hereafter acquired by any Loan Party and all proceeds upon which FCC has, or
is entitled to have, any Lien under any of the Security Documents. 
 “Conversion Fee” has the meaning in Section 3.7(a) of Schedule
A. 
 “Control” means the possession, directly or indirectly, of the power to direct the management or policies of a Person, whether by
voting power, contract or otherwise. 
 “Core Business” means agri-business including businesses related to or ancillary to the
agricultural and food processing industries and the current operations of the Loan Parties. 
 “Credit Facilities” means all loans and
credit facilities established by FCC in favour of the Borrower from time to time and “Credit Facility” means any of them as the context requires. 

  
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 “Deemed Year” has the meaning in Section 3.2(a) of Schedule A. 

“Default” means any event or condition that would constitute an Event of Default except for giving of any notice, passage of time, or both.

 “Environmental Law” means any common law and any federal, provincial or municipal Applicable Law relating to the environment,
occupational health and safety. 
 “Equity Securities” means any and all shares, stock or units of any Person or other equivalents (however
designated and whether voting and non-voting). 
 “Event of Default” has the meaning in
Section 5.1 of Schedule A. 
 “Existing Credit Facilities” has the meaning in Section 2.1 of this Agreement. 

“Financial Year” means, with respect to any Loan Party, the 12-month fiscal period on which such Loan
Party reports it annual financial results in accordance with the Accounting Standards. 
 “Governmental Authority” means any nation,
federal government, province, municipality or other political subdivision of any of the foregoing and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

“Guarantee” means any absolute or contingent liability of a Person under any guarantee, agreement, endorsement or other obligation to be or
become obligated for any Indebtedness of any other Person. 
 “Guarantors” means each of the Loan Parties other than the Borrower. 

“Indebtedness” means, with respect to any Person, (i) an obligation for borrowed money, (ii) an obligation for the deferred
purchase price of property or services, (iii) a capitalized lease obligation, (iv) a guarantee, indemnity, or financial support obligation, (v) an obligation secured by a Lien on any property of such Person, or (vi) a redeemable
share in the capital of such Person. 
 “Insurance” has the meaning in Section 4.1(l) of Schedule A. 

“IPO” means the initial public offering of equity interests or debt securities by the Loan Parties. 

“IPO Issuance” means the issuance of equity interests pursuant to the IPO. 

“IPO Proceeds” means proceeds equal to the aggregate amount received in cash in connection with the IPO. 

“Lien” means any mortgage, security interest, hypothec, title retention, pledge, assignment, charge or other encumbrance whatsoever. 

“Loans” means loan number 0000682037001 and 0000694693001 and “Loan” means any one of them as the context requires. 

  
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 “Loan Approval Expiry Date” has the meaning set out in Section 2.1 and 2.2 of this
Agreement, as the context requires. 
 “Loan Documents” means, collectively, this Agreement, the Security Documents and all other
documents, instruments and agreements in favour of FCC related hereto. 
 “Material Adverse Effect” means an adverse effect on:
(i) the business, property, assets, liabilities, operations, condition (financial or otherwise), affairs or prospects of the Loan Parties taken as a whole; (ii) the ability of the Loan Parties, taken as a whole, to perform their
obligations under any of the Loan Documents; and (iii) the ability of FCC to enforce its rights and remedies under any of the Loan Documents. 

“Maturity Date” has the meaning September 30, 2019. 

“New Continuing Collateral Mortgage” has the meaning in Section 3.2(a). 

“New Credit Facilities” has the meaning in Section 2.2 of this Agreement. 

“Outstanding Obligations” means: (i) all outstanding Advances, (ii) all due and unpaid interest, fees, charges, indemnities and
expenses in respect of this Agreement and any other Loan Document required to be paid by any Loan Party to FCC, and (iii) all other indebtedness, liabilities and obligations of any Loan Party to FCC. 

“Permitted Acquisitions” means acquisitions by any one or more of the Loan Parties which satisfy all of the following conditions: 

 

	 	(a)	 the target must be in a similar or complimentary line of Core Business as the Loan Parties and reside in
Canada; 

  

	 	(b)	 the Acquisition must be non-hostile and the target must become a
wholly-owned Subsidiary of one of the Loan Parties; 

  

	 	(c)	 the acquired entity and its assets must be used in a Loan Party’s Core Business; 

 

	 	(d)	 prior written approval from FCC must have been obtained; 

 

	 	(e)	 the Loan Parties must be in compliance with all terms of this Agreement; 

 

	 	(f)	 FCC has received financial information, in form and substance satisfactory to FCC, prior to the entry into of
the Acquisition agreement demonstrating pro forma compliance by the Borrower with the financial covenants set out in this Agreement for the next four (4) fiscal quarters following completion of the Acquisition; 

 

	 	(g)	 within 30 days of closing the Acquisition, the applicable Loan Party will provide FCC with a Lien on all
property of the acquired entity; and 

  

	 	(h)	 at the time of and immediately after making any such Acquisition, no Default or Event of Default has occurred
and is continuing or would result therefrom. 

  
 43 

 “Permitted Sale of Assets” means a Sale of Assets by any Loan Party which is: 

 

	 	(a)	 a sale of inventory in the ordinary course of its business upon customary credit terms; or

  

	 	(b)	 the disposition of land and buildings, machinery, equipment or inventory which is surplus, obsolete or worn-out; or 

  

	 	(c)	 sold or leased to another Loan Party; or 

 

	 	(d)	 Sale of Assets that have been specifically approved by FCC in writing. 

“Permitted Indebtedness” means the following Indebtedness: 
  

	 	(a)	 the Outstanding Obligations; 

 

	 	(b)	 current accounts payable and accrued expenses arising in the ordinary course of business;

  

	 	(c)	 any Indebtedness incurred or assumed to finance all or any part of the acquisition price of any asset acquired
by the Loan Parties or to finance all or any part of the cost of any improvement to any asset of any of the Loan Parties, provided that, the Loan Parties are in compliance with the financial covenants set out in this Agreement;

  

	 	(d)	 a Guarantee of any Permitted Indebtedness of any Loan Party; 

 

	 	(e)	 Subordinated Debt; provided that, the subordinated lender has executed and delivered a subordination and
postponement agreement satisfactory to FCC; and 

  

	 	(f)	 other Indebtedness in respect of which FCC has provided its prior written consent. 

“Permitted Liens” means the following Liens: 
  

	 	(a)	 easements, rights of way, encroachments, restrictive covenants, servitudes or other similar rights in land
granted to or reserved by other Persons which do not detract from the value of the said properties or impair their use; 

  

	 	(b)	 security or deposits given to a public utility or any Governmental Authority in connection with the operations
of a Person in the ordinary course of its business; 

  

	 	(c)	 reservations, limitations, provisos and conditions expressed in any original grants from the Crown;

  

	 	(d)	 any lien for taxes or assessments not yet due or, if due, are being contested and for which a reasonable
reserve satisfactory to FCC has been provided; 

  

	 	(e)	 any carriers, warehouse, contractors, suppliers, mechanics or similar liens arising in the ordinary course of
business so long as the charges secured thereby are not yet due or, if due, are being contested and for which a reasonable reserve satisfactory to FCC has been provided; 

  
 44 

	 	(f)	 undetermined or inchoate liens, privileges, hypothecs or charges arising in the ordinary course of business
which have not at such time been filed; 

  

	 	(g)	 Liens or deposits to secure the performance of bids, tenders, trade contracts, leases, statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like nature (other than for borrowed money) incurred in the ordinary course of business; 

 

	 	(h)	 Liens in favour of FCC in respect of the Outstanding Obligations; 

 

	 	(i)	 Liens in favour of ATB or BMO; provided that, any such Liens are subject to the Inter-creditor Agreement
between FCC, ATB and BMO which is and remains in effect at all times; and 

  

	 	(j)	 any Liens in respect of which FCC has given its prior written consent, provided that: (i) the designation
in any Loan Document of a Lien as a “Permitted Lien” is not an acknowledgment by FCC that the Lien has priority over the Liens of FCC against any one or more of the Loan Parties or their respective assets. 

“Person” means an individual, partnership, corporation, trust, unincorporated organization, government or any department or agency thereof or
any other entity. 
 “Property” has the meaning in Section 3.2(a) of this Agreement. 

“Receiver” means a receiver or a receiver and manager and includes an interim receiver under the Bankruptcy and Insolvency Act
(Canada). 
 “Sale of Assets” means the sale, lease, transfer, assignment or other disposition of all or any portion of the business,
assets, rights, revenues or property of any Person, other than in the ordinary course of business. 
 “Security Documents” means all
guarantees, mortgages, hypothecs, security agreements, pledges, assignments and charges executed by any Loan Party in favour of FCC whether on, before or after the date of this Agreement, which by their terms or the terms of this Agreement are
intended to secure payment and performance of the Outstanding Obligations. 
 “Subordinated Debt” means Indebtedness of any Loan Party
(i) the primary terms of which are all satisfactory to FCC in its sole discretion, (ii) which has been validly postponed and subordinated in right of payment and collection to the repayment in full of the Outstanding Obligations to the
satisfaction of FCC, and (iii) all security, if any, held for such Indebtedness has been fully subordinated and postponed to the Security Documents to the satisfaction of FCC. 

“Subsidiary”, with respect to a Person, a Person directly or indirectly Controlled by the first Person. 

“Taxes” means all taxes, rates, levies, imposts, assessments, government fees, dues, duties, deductions, withholdings and similar impositions
paid or payable to any Governmental Authority. 

  
 45

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