Document:

Exhibit 10.2

 

DEVELOPMENT AGREEMENT

 

THIS DEVELOPMENT AGREEMENT
is made and entered into effective this 9th day of August, 2019 (the “Effective Date”), by and between IIP-PA
4 LLC, a Delaware limited liability company (“Landlord”), PHARMACANN PENN PLANT LLC, a Pennsylvania limited
liability company (“Tenant”), and IIP OPERATING PARTNERSHIP, LP, a Delaware limited partnership (“Parent
Company”). Landlord, Tenant and Parent Company shall sometimes collectively be referred to herein as the “Parties.”

 

RECITALS

 

A.                 
WHEREAS, concurrent with the execution of this Agreement, Landlord acquired certain real property located at Lot No. 4 in
Scott Technology Park, Scott Township, Pennsylvania, as more particularly described on Exhibit A attached hereto and incorporated
herein by reference (the “Land”);

 

B.                 
WHEREAS, concurrent with the execution of this Agreement, Landlord and Tenant entered into that certain Lease dated August
9, 2019 (as the same may be amended, supplemented or otherwise modified from time to time, the “Lease”), pursuant
to which Tenant leases the Premises;

 

C.                 
WHEREAS, Tenant desires to construct and develop certain industrial and greenhouse Improvements on the Land for medical-use
cannabis cultivation and processing, subject to and in accordance with the terms and conditions of this Agreement and the Lease;

 

D.                 
WHEREAS, Landlord has agreed to pay or reimburse Tenant for the costs of completing the Improvements up to the Construction
Contribution Amount, subject to and in accordance with the terms and conditions of this Agreement and the Lease; and

 

E.                  
WHEREAS, Tenant will derive certain direct and indirect benefits from the construction of the Improvements pursuant to this
Agreement and the Lease.

 

NOW, THEREFORE, FOR
GOOD AND VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, the Parties hereby agree as follows:

 

1.                  
Definitions. In addition to those terms defined elsewhere in this Agreement, the following terms shall have the meanings
set forth below:

 

“AAA”
shall have the meaning given to such term in Section 11.2 of this Agreement.

 

“AAA Rules”
shall have the meaning given to such term in Section 11.9(a) of this Agreement.

 

“Architect Arbitrator”
shall have the meaning given to such term in Section 11.4 of this Agreement.

 

“Affiliate”
shall mean any person or entity that, directly or indirectly, controls or is controlled by or is under common control with any
other entity.

 

“Agreement”
shall mean this Development Agreement, as amended from time to time.

 

“Application”
shall have the meaning given to such term in Section 6.1 of this Agreement.

 

“Attorney Arbitrator”
shall have the meaning given to such term in Section 11.4 of this Agreement.

 

“Authorized
Excess Development Costs” shall have the meaning ascribed to such term in Section 8 of this Agreement.

 

     

     

    

 

"Bankruptcy Code"
means the United States Bankruptcy Code or any successor statute (as the same may be amended from time to time).

 

“Budgeted Development
Costs” shall mean all Development Costs which are authorized pursuant to the Development Plan and Budget, which shall
include, without limitation, (a) a fee to Landlord equal to Twenty-Five Thousand Dollars ($25,000.00) to cover Landlord's overhead
and expenses for plan review, engineering review, coordination, scheduling and supervision of the Development and (b) reimbursement
for Landlord's third-party costs actually incurred in connection with the Development, including Landlord's engagement of a construction
consultant to oversee the Development, provided that any such costs shall be reasonable and shall be reasonably consistent with
market rates paid for similar services.

 

“Buildings”
shall mean an approximately Thirty Thousand Seven Hundred (30,700) square foot greenhouse facility and an approximately Twenty-Two
Thousand Six Hundred (22,600) square foot headhouse, together with all related facilities and improvements suitable for the Permitted
Use, subject to changes as may be made in accordance with this Agreement.

 

“Completion
Date” shall mean the date which corresponds to the last to occur of each of the Completion Events.

 

“Completion
Events” shall mean the following events: (a) the substantial completion of the construction, development and installation
of the Improvements and the performance of all other construction and development work for the Development in accordance with the
Development Plan and Budget, as evidenced by a Certificate of Substantial Completion in the form of the American Institute of Architects
document G704, executed by the project architect and the general contractor; (b) Landlord has received copies of all certifications
and approvals with respect to the Improvements that may be required from any governmental authority and any board of fire underwriters
or similar body for the use and occupancy of the Premises, including the issuance of a certificate of occupancy or similar governmental
approval suitable for the Permitted Use; (c) the full performance by the general contractor(s) of all of its (their) duties and
obligations under the construction contracts with regard to the Development in accordance with the Development Plan and Budget,
other than those items set forth on a Punch-List prepared by the Tenant and delivered to the general contractor(s); (d) Landlord
has received the general contractor’s final unconditional waiver and release of lien and final unconditional waivers and
releases of liens from each subcontractor and material supplier with respect to the Improvements; (e) Landlord has received complete
“as built” drawing print sets, project specifications and shop drawings and electronic CADD files on disc for the Improvements;
(f) Landlord has received an as-built ALTA survey depicting the Improvements and otherwise reasonably acceptable to Landlord; (g)
Landlord has received a commissioning report prepared by a licensed, qualified commissioning agent hired by Tenant and approved
by Landlord for all mechanical, electrical and plumbing systems installed in connection with the Development; (h) Landlord, at
Tenant’s sole cost and expense, has received an ALTA owner’s policy of title insurance with extended coverage, with
liability coverage in the amount of the Construction Contribution Amount plus $925,000), affirmative coverage for any appurtenant
easements to the Premises and such endorsements as Buyer may request (to the extent available), which title policy shall be issued
by a title company reasonably acceptable to Landlord and shall otherwise be in form and substance reasonably acceptable to Landlord;
and (i) Landlord has received such other “close out” materials as Landlord reasonably requests.

 

“Construction
Contribution Amount” shall mean an amount not to exceed Twenty-Five Million Fifty-Eight Thousand Dollars ($25,058,000.00).

 

“Construction
Payment” shall have the meaning ascribed to such term in Section 6.2 of this Agreement.

 

“Contractor
Arbitrator” shall have the meaning given to such term in Section 11.4 of this Agreement.

 

“Default”
shall have the meaning ascribed to such term in the Lease.

 

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“Development”
shall have the meaning ascribed to such term in Section 2.2 of this Agreement.

 

“Development
Approvals” shall mean: (a) any and all land use and development entitlements, permits and authorizations relating to
the Development; (b) utility hook-up rights, water allocations, water rights, sewer capacity, density allocations and other similar
rights or approvals regarding the Development; (c) any and all documents, agreements, instruments and/or understandings with any
local, state or federal governmental agency concerning the construction and development of any on-site or off-site improvements
by one or more of such governmental agencies; and (d) any and all approvals and/or consents required to be obtained in connection
with the Development for compliance with any CC&Rs (as such term is defined in the Lease).

 

“Development
Costs” shall mean, with respect to the Improvements, any and all costs, fees and expenses incurred by Tenant arising
out of and in connection with the Improvements.

 

“Development
Plan and Budget” shall have the meaning ascribed to such term in Section 5.1 of this Agreement.

 

“Disbursement
Claim” shall have the meaning ascribed to such term in Section 11.1 of this Agreement.

 

“Disapproved
Matters” shall have the meaning ascribed to such term in Section 4.6 of this Agreement.

 

“Effective Date”
shall the meaning ascribed to such term in the introductory paragraph of this Agreement.

 

“Excess Development
Costs” shall mean those Development Costs which are in excess of the aggregate amounts allocated to Development Costs
in the Development Plan and Budget.

 

“Final Arbitration
Decision” shall have the meaning ascribed to such term in Section 11.10 of this Agreement.

 

“Improvements”
shall mean the Buildings and related improvements and facilities to be constructed on the Land, as generally depicted on Exhibit
B attached hereto, in accordance with the Development Plan and Budget and any work, improvements or items reasonably inferable
therefrom as necessary to produce a functional facility consistent with the Permitted Use, including, without limitation, all water
control systems, utility lines and related fixtures and improvements, drainage facilities, landscaping, fencing, signs, parking
facilities, access ways, walkways and related facilities.

 

“Initial Meeting”
shall have the meaning ascribed to such term in Section 11.1 of this Agreement.

 

“Insolvency”
shall mean either: (a) when the Tenant (i) has an order for relief entered with respect to it under Chapter 7 or Chapter 11
of the Bankruptcy Code; (ii) makes a general assignment for the benefit of creditors; (iii) files a voluntary petition under the
Bankruptcy Code; (iv) files a petition or answer seeking for the Tenant any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the Bankruptcy Code, any statute, law or regulation; (v) files an answer or other
pleading admitting or failing to contest the material allegations of a petition filed against the Tenant in any proceeding of this
nature; and/or (vi) seeks, consents to or acquiesces the appointment of a trustee, receiver or liquidator of the Tenant or of all
or any substantial part of the Tenant’s properties; or (b) (i) sixty (60) calendar days after the commencement of any proceeding
seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under the Bankruptcy
Code, any statute, law or regulation, the proceeding has not been dismissed; or (ii) if, within sixty (60) calendar days after
the appointment without the Tenant’s consent or acquiescence of a trustee, receiver or liquidator of the Tenant or of all
or any substantial part of the property or estate of the Tenant, the appointment is not vacated or stayed or within sixty (60)
calendar days after the expiration of any such stay, the appointment if not vacated.

 

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“Land”
shall have the meaning ascribed to such term in the recitals to this Agreement.

 

“Lease”
shall have the meaning ascribed to such term in the recitals to this Agreement.

 

“Landlord”
shall the meaning ascribed to such term in the introductory paragraph of this Agreement.

 

“Landlord Event
of Default” shall have the meaning ascribed to such term in Section 9.7 of this Agreement.

 

“Legal Requirements”
shall mean any and all laws, statutes, ordinances, codes, orders, rules, regulations, permits, licenses, authorizations, entitlements
(including, without limitations, any and all Development Approvals), official orders and requirements of, or conditions imposed
by, all federal (to the extent not in direct conflict with applicable state, municipal or local cannabis licensing and program
laws, rules and regulations), state, municipal and local laws, codes, ordinances, rules and regulations of governmental authorities,
committees, associations, or other regulatory committees, agencies or governing bodies having jurisdiction over the Premises or
any portion thereof, Landlord or Tenant, including both statutory and common law, hazardous waste rules and regulations, and state
cannabis licensing and program laws, rules and regulations, state, and local governmental regulatory agencies and authorities and
any covenants, conditions and restrictions of record encumbering the Land, in each case which are as of the date hereof or hereafter
become applicable to the construction, development or operation of the Improvements, including, without limitation, any of the
foregoing relating in any way to hazardous material and/or hazardous waste.

 

“Notice of Demand”
shall have the meaning ascribed to such term in Section 11.2 of this Agreement.

 

“Panel”
shall have the meaning ascribed to such term in Section 11.3 of this Agreement.

 

“Parent Company”
shall the meaning ascribed to such term in the introductory paragraph of this Agreement.

 

“Parties”
shall have the meaning ascribed to such term in the introductory paragraph of this Agreement.

 

“Permitted Use”
shall have the meaning ascribed to such term in the Lease.

 

“Premises”
shall have the meaning ascribed to such term in the Lease.

 

“Prior Course
of Dealing” shall have the meaning ascribed to such term in the Lease.

 

“Project Agreements”
shall have the meaning ascribed to such term in Section 3.5 of this Agreement.

 

“Punch-Lists”
shall have the meaning ascribed to such term in Section 3.12 of this Agreement.

 

“Required Arbitration
Construction Payments” shall have the meaning ascribed to such term in Section 11.10 of this Agreement.

 

“Revised Development
Plan and Budget” shall have the meaning ascribed to such term in Section 5.2 of this Agreement.

 

"SEC Information"
shall have the meaning ascribed to such term in Section 3.19 of this Agreement.

 

“Submission”
shall have the meaning ascribed to such term in Section 4.1 of this Agreement.

 

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“Tenant”
shall the meaning ascribed to such term in the introductory paragraph of this Agreement.

 

“Tenant Event
of Default” shall have the meaning ascribed to such term in Section 9.2 of this Agreement.

 

“Term”
shall have the meaning ascribed to such term in Section 9.1 of this Agreement.

 

“Termination
Event” shall have the meaning ascribed to such term in Section 9.1 of this Agreement.

 

“Unauthorized
Excess Development Costs” shall have the meaning ascribed to such term in Section 8 of this Agreement.

 

2.                  
Tenant Improvements.

 

2.1               
Incorporation Into Lease. The Parties acknowledge and agree that the terms and conditions of this Agreement shall
be deemed part of and incorporated into the Lease. For the avoidance of doubt, the occurrence of a Tenant Event of Default or a
Landlord Event of Default under this Agreement shall constitute a Default by such Party under the Lease.

 

2.2               
General Requirements. Tenant hereby agrees to secure all necessary Development Approvals in connection with the construction
and development of the Improvements, all in accordance with the Development Plan and Budget (collectively, the “Development”);
and (b) perform all other duties and obligations to be performed by Tenant in accordance with the terms and conditions of this
Agreement, including without limitation, those duties, responsibilities and obligations set forth in Section 3 hereof. Without
limiting the foregoing, Tenant shall use commercially reasonable and diligent efforts to cause the Completion Date to occur no
later than eighteen (18) months following the Effective Date, provided that the Completion Date shall be subject to a day-for-day
extension for any actual delays resulting from events of force majeure beyond the reasonable control of Tenant.

 

During the Term of
this Agreement, Tenant shall fully and timely perform all of the duties, responsibilities and obligations required to be performed
by Tenant pursuant to this Agreement and the Development Plan and Budget in a commercially reasonable manner, comparable with other
similar quality industrial developments to be used for similar uses in the greater Pennsylvania market. In connection with the
foregoing, Tenant hereby covenants to furnish its commercially reasonable skill and judgment in performing its obligations hereunder.
Tenant shall perform its duties, responsibilities and obligations under this Agreement in a reasonably timely, efficient, expeditious,
prudent and economical manner, consistent with the interest of Landlord, subject in any event to and in accordance with commercially
reasonable standards, and this Agreement and the Development Plan and Budget.

 

2.3               
Employees and Independent Contractors. Tenant shall employ, on its own behalf and not as employees or independent
contractors of Landlord, at all times a sufficient number of capable employees and/ or independent contractors to enable it to
fulfill Tenant’s duties, responsibilities and obligations under this Agreement. All salaries, wages, compensation and benefits
paid or payable to any employees and/ or independent contractors of Tenant shall be borne solely by Tenant and shall not be borne
by Landlord, provided such costs shall be reimbursable to Tenant as a Budgeted Development Cost to the extent the same is included
in the Development Plan and Budget, subject to the terms and conditions of this Agreement.

 

2.4               
Other Activities. This Agreement shall not restrict Tenant or any of its Affiliates from engaging in any other development
or business activities. Notwithstanding the foregoing, in no event shall Tenant, during the Term of this Agreement, engage in any
other development or business activities which might or will materially interfere with Tenant’s ability to perform its duties,
responsibilities and obligations under this Agreement.

 

3.                  
Duties of Tenant. Subject to the terms and conditions of this Agreement and the Development Plan and Budget, and
in addition to the other duties, responsibilities and obligations of Tenant under this Agreement, Tenant hereby agrees to and shall,
at Tenant’s sole cost and expense, fully and timely perform (or cause to be performed) in a commercially reasonable manner
the duties, responsibilities and obligations set forth in this Agreement including, without limitation, the duties, responsibilities
and obligations set forth below. Tenant shall not undertake the performance of any of the duties, responsibilities and obligations
set forth in this Section 3 or elsewhere in this Agreement unless such duties, responsibilities and obligations are expressly authorized
pursuant to the Development Plan and Budget or are otherwise approved by Landlord pursuant to Section 4 hereof.

 

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3.1               
Secure all Development Approvals and all other necessary permits, licenses, consents, authorizations, zoning variances or
changes, (whether regulatory, governmental, quasi-governmental or otherwise), which may be reasonably necessary or appropriate
in connection with the Development.

 

3.2               
Secure all surveys, soil tests and other studies and reports necessary to secure all Development Approvals reasonably required
for the Development and provide Landlord with electronic copies of all of the foregoing to the extent in Tenant’s possession
or reasonable control.

 

3.3               
Cause to be prepared and review all preliminary plans, working drawings, plans and specifications and construction cost
estimates reasonably required for the Development (and provide Landlord with electronic copies of all of the foregoing to the extent
in Tenant’s possession or reasonable control), and verify the compliance of such plans, working drawings, plans and specifications
and construction cost estimates with this Agreement and the Development Plan and Budget.

 

3.4               
Secure all other documents, agreements, instruments, reports, studies, surveys, maps, and all other materials reasonably
necessary for the Development.

 

3.5               
Solicit and negotiate all agreements, contracts, documents and other instruments reasonably necessary in order to undertake
the activities required to be performed by Tenant pursuant to Sections 3.1, 3.2, 3.3 and 3.4 above and/or to otherwise commence
and/or complete the Development (“Project Agreements”), which Project Agreements may include, without limitation,
any and all construction contracts and subcontracts, architectural and engineering contracts, supply contracts, applications and/or
agreements with governmental authorities, as the same may be amended from time to time. In the event any proposed Project Agreements
are with any Affiliate of Tenant, Tenant shall specifically notify Landlord when processing such proposed Project Agreement with
Landlord for Landlord’s approval pursuant to Section 4 hereof. In connection with Landlord’s review of such Project
Agreements pursuant to Section 4 hereof, Landlord shall not unreasonably disapprove a proposed Project Agreement which is consistent
with the Development Plan and Budget. In no event shall Tenant be authorized to enter into or execute any such Project Agreements
in the name of or on behalf of Landlord.

 

3.6               
Oversee, supervise and manage the planning, design, construction, and development of the Improvements, all in accordance
with the Development Plan and Budget and in compliance with the Development Approvals and other Legal Requirements.

 

3.7               
Oversee, supervise, manage and coordinate on a daily basis, the services of all employees, architects, contractors, subcontractors,
supervisors, engineers and other individuals and entities to carry out the Development, or any portion thereof.

 

3.8               
Coordinate and conduct bi-weekly on-site meetings with members of the construction and development team.

 

3.9               
Prepare and submit to Landlord a monthly status report with respect to the progress of the Development, which status report
shall be in form and substance reasonably satisfactory to Landlord.

 

3.10            
Review applications for payment by its contractors and their subcontractors in connection with the Development and process
applications for payment in accordance with the terms and conditions of this Agreement, including satisfying the conditions necessary
to secure any disbursement of funds for payment of such application pursuant to Section 6 below.

 

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3.11            
Undertake commercially reasonable efforts to determine and verify the substantial and final completion of all construction
and development work to be performed and/or services to be provided in connection with the Development including, without limitation,
the substantial and final completion of all obligations to be performed pursuant to the applicable Project Agreements.

 

3.12            
Undertake commercially reasonable efforts to ensure that its contractor prepares any and all punch-lists of incomplete or
unsatisfactory work and other activities in connection with the Development (“Punch-Lists”), and undertake commercially
reasonable efforts to cause contractor to complete all items on such Punch-Lists.

 

3.13            
Coordinate and arrange for all utility services and required easements necessary for the Development.

 

3.14            
Prepare and submit all applications, forms and packages to secure the payment of any and all discounts, rebates, refunds,
subsidies, or other concessions referenced in the Development Plan and Budget (if any).

 

3.15            
Upon completion of the Development, procure an as-built ALTA survey that depicts the Improvements and is otherwise reasonably
acceptable to Landlord.

 

3.16            
Promptly notify Landlord of any material disputes with contractors, vendors, materialmen or suppliers, in any case, of which
it has received written notice, and exert all commercially reasonable efforts to give notice to Landlord prior to any liens filed
against all or any portion of the Land to the extent the Tenant has received written notice of the same. As soon as reasonably
practicable following its receipt of written notice of, or otherwise becoming aware of, any labor or materialmen’s liens
or any other liens, liabilities or encumbrances against all or any portion of the Land relating to the Development, Tenant shall
provide written notice of such liens, liabilities or encumbrances to Landlord. The amount of such lien, liability or encumbrance
shall be fully paid or otherwise satisfied by Tenant (or insured over by the title company selected by Tenant, at Tenant's sole
cost and expense). As used herein, "actual knowledge" of Tenant shall mean the actual (and not imputed) knowledge of
each of Teddy Scott, Brett Novey, Chris Atkinson and Robert McQueen without duty to inquire or investigate.

 

3.17            
Promptly notify Landlord in writing of any potential construction defects and warranty claims in connection with the Development
of which Tenant has actual knowledge and Tenant’s recommendation for prosecuting such matters. Upon instruction from Landlord,
Tenant shall pursue the course of action directed by Landlord.

 

3.18            
Secure and maintain at Tenant’s principal place of business all guarantees, warranties, affidavits, waivers, releases,
bonds, keys, operating and maintenance manuals, certificates of occupancy and other permits and approvals with respect to the Development
and provide Landlord with electronic copies of all of the foregoing to the extent in Tenant’s possession or reasonable control.

 

3.19            
Establish and maintain complete and accurate books and records with respect to the Development, together with sufficient
documentation to fully support each of the entries in such books and records. Such books and records shall include proper entries
of all receipts, income and disbursements pertaining to the Development. Such books and records shall be and remain the property
of the Landlord (subject to Tenant’s right to retain copies) and be maintained by Tenant at Tenant’s principal place
of business or at the on-site construction office on or near the Land. In connection with the foregoing, Tenant shall make such
books and records available to Landlord and its representatives for inspection and audit at Tenant’s principal place of business
or at the on-site office (or at another location previously approved by Landlord) at any time and from time to time during regular
business hours. Without limiting the foregoing, Tenant shall provide, as reasonably requested by Landlord, any necessary or appropriate
documents, periodic reports, materials and information to Landlord and/or any other financial institution or lenders designated
by Landlord, or attorneys and accountants selected by Landlord. Tenant shall cooperate with accountants and attorneys selected
by Landlord in the preparation of all tax returns and reports required to be filed by Landlord and/or its Affiliates (including,
without limitation, federal income tax returns, state income tax and/or franchise tax returns, if any, state intangible tax returns,
if any, and state annual reports, if any) and shall provide to such accountants and/or attorneys all books and records pertaining
to the Development that are requested and that are in the possession and control of Tenant, it being understood and agreed that
Tenant shall have no authority or responsibility to execute or file any returns of Landlord or its Affiliates. Additionally, Tenant
acknowledges that Landlord or one of its Affiliates may be required to file various reports and other information with the Securities
and Exchange Commission and other regulatory agencies. Accordingly, Tenant hereby agrees to and shall timely provide to Landlord
and/or such Affiliates any and all reports and other information required pursuant to this Section (provided such reports and other
information pertain directly to the services to be performed by Tenant pursuant to this Agreement), together with all other reports
and other information that may be reasonably requested from time to time by Landlord and/or its Affiliates (provided such reports
and other information pertain directly to the services to be performed by Tenant pursuant to this Agreement), all of which shall
be in form and content reasonably satisfactory to Landlord or such Affiliate (“SEC Information”). All SEC Information
requested by Landlord and/or any of its Affiliates shall be delivered by Tenant to Landlord or such Affiliate within ten (10) calendar
days of the date of such request by Landlord and/or such Affiliate.

 

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3.20            
Establish and maintain complete and orderly files containing correspondence, insurance policies, receipts, all paid and
unpaid bills, vouchers and all other documents and papers pertaining to the Development, all of which shall be and remain the property
of Landlord (subject to Tenant’s right to retain copies) and shall be available to Landlord and its representatives for inspection
at Tenant’s principal place of business, the construction office located on-site for the Development or at another location
previously approved by Landlord at any time and from time to time during regular business hours.

 

3.21            
Immediately advise Landlord of the discovery of any hazardous substances or materials in, on or about the Land.

 

3.22            
Promptly advise the Landlord of any actual or threatened legal action, condemnation proceeding, claim, tax assessment or
damage adversely affecting the Land and/or the Development which becomes known to Tenant.

 

3.23            
At all times comply with all statutes, ordinances, rules and regulations, licenses and permits, and other Legal Requirements
applicable to the performance of its duties, responsibilities and obligations under this Agreement.

 

3.24            
At all times comply with all covenants, conditions and restrictions of record affecting the Land, including, without limitation,
all Project Agreements.

 

3.25            
Perform all other duties and obligations to be performed by Tenant in accordance with the terms and conditions of this Agreement
and in accordance with the Prior Course of Dealing.

 

4.                  
Landlord’s Approvals. In connection with the performance by Tenant of all of its duties and obligations as
set forth in this Agreement, Tenant acknowledges and agrees that it is obligated to secure the prior written approval from Landlord
with respect to all matters not previously authorized pursuant to the Development Plan and Budget in accordance with the procedures
set forth below. Without limiting the foregoing, Tenant shall submit to Landlord, for Landlord’s review and approval, which
approval shall not be unreasonably withheld, such items expressly requiring Landlord’s prior written approval pursuant to
this Agreement. Landlord’s prior written approval shall be secured by Tenant in accordance with the following procedures:

 

4.1               
Tenant shall prepare and submit to the Landlord, for Landlord’s review and approval, all matters expressly required
to be reviewed and approved by Landlord pursuant to this Agreement, together with any original documents, agreements, instruments,
correspondence and other information reasonably required by Landlord to make a determination as to the matters being reviewed and
approved “Submission”). All Submissions to be made to Landlord pursuant to this Section 4 shall only be effective
if such Submissions are delivered pursuant to the provisions of this Agreement.

 

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4.2               
Each Submission shall include a notation on the transmittal letter accompanying such Submission, which states that the matters
being delivered to Landlord shall be deemed approved by Landlord, unless Landlord timely delivers its notice of disapproval pursuant
to this Section 4.

 

4.3               
Landlord shall have a period of ten (10) calendar days after receipt by Landlord of each Submission in which to review such
Submission and deliver to Tenant written notice of either its approval or disapproval with respect to the matters being reviewed
or of any additional information reasonably required by Landlord in order to make such a determination. Landlord shall notify Tenant
as soon as reasonably practicable in the event Landlord requires such additional information.

 

4.4               
In the event Landlord fails to timely deliver to Tenant written notice of its approval or disapproval of the Submission
pursuant to Section 4.3 hereof, the Submission shall be deemed approved.

 

4.5               
In the event Landlord timely approves (or is deemed to have approved) any such Submission, the Landlord and/or the Tenant,
as applicable, shall take such actions required to implement such approved matters.

 

4.6               
In the event Landlord disapproves of any of the matters of such Submission (“Disapproved Matters”), Landlord
shall advise Tenant in writing of its disapproval and the basis for such disapproval. In such a case, Tenant may take such actions
required to satisfy Landlord with respect to the Disapproved Matters and resubmit such matters to Landlord, for Landlord’s
review and approval, pursuant to this Section 4.

 

5.                  
Development Plan and Budget.

 

5.1               
Development Plan and Budget. Tenant shall prepare the initial Development Plan and Budget in connection with the
Development (as may be modified from time to time hereunder, the “Development Plan and Budget”). Tenant will
consult with Landlord in connection with the preparation of the initial Development Plan and Budget. Following Landlord’s
approval of the initial Development Plan and Budget, Landlord and Tenant shall attach the same as Exhibit C to this Agreement.
During the Term of this Agreement, Tenant shall use commercially reasonable efforts to comply with the terms and conditions of
the Development Plan and Budget. Notwithstanding the foregoing, Tenant may exceed the line item amount allocated to any such expenditure
as set forth in the Development Plan and Budget, without the approval by Landlord, provided the following conditions are satisfied:
(a) such expenditure does not exceed the applicable line item (determined on an aggregate basis), by more than One Hundred Thousand
Dollars ($100,000.00), or thirty percent (30%), whichever is less; (b) Tenant has recognized cost savings in other categories of
the Development Plan and Budget of equal or greater amounts thereby resulting in no net overall increase in the Development Plan
and Budget; and (c) any such expenditure or cost savings does not result in a material modification of the conceptual plan for
the Improvements as set forth in the Development Plan and Budget.

 

5.2               
Revision of the Development Plan and Budget. During the Term of this Agreement, Tenant or Landlord may determine
that the Development Plan and Budget is no longer applicable because of changes in conditions, circumstances, planned operations,
or otherwise. In such case, Tenant shall prepare and submit to the Landlord, for Landlord’s review and approval, a revised
Development Plan and Budget (as modified hereunder, the “Revised Development Plan and Budget”) for the remainder
of the Term of this Agreement, indicating in narrative form the reasons why the assumptions used as the basis of preparing the
original Development Plan and Budget (or any Revised Development Plan and Budget currently in effect) are no longer valid.

 

On or before the expiration
of ten (10) calendar days after receipt of the proposed Revised Development Plan and Budget, Landlord shall deliver written notice
to Tenant setting forth Landlord’s approval or disapproval of all or any portion of the same. In the event Tenant does not
receive a written notice of approval or disapproval from Landlord within such ten (10) calendar day period, then the proposed Revised
Development Plan and Budget shall be deemed approved by Landlord. Notwithstanding the foregoing, until such time as the Revised
Development Plan and Budget has been approved (or deemed approved) by the Landlord in accordance with the terms and conditions
of this Section 5.2, the Tenant shall perform its duties in accordance with the Development Plan and Budget (or any Revised Development
Plan and Budget, as the case may be), currently then in effect. Following the approval (or deemed approval) by the Landlord of
the Revised Development Plan and Budget (if required hereunder), with respect to the period of time in question, all references
in this Agreement to the Development Plan and Budget shall mean the Revised Development Plan and Budget.

 

    9

     

    

 

5.3               
Emergency Expenditures. As more fully set forth in Section 5.1 hereof, Tenant shall use commercially reasonable efforts
to comply with the Development Plan and Budget. Notwithstanding anything contained in this Agreement to the contrary, in the event
of any emergency affecting the safety of persons or property, or which is likely to result in substantial injury, damage or loss
to the Landlord, Tenant is hereby authorized to act in a manner intended to mitigate or prevent threatened damage, injury or loss
and, in connection therewith, if deemed prudent by the Tenant, and Tenant shall be entitled to make expenditures in excess of the
limitations set forth in the Development Plan and Budget, without the necessity of securing the approval by the Landlord prior
to such expenditure. Tenant shall deliver written notice to Landlord summarizing such emergency expenditures, together with copies
of all invoices, receipts and other written documentation evidencing the amounts owing and/or payable. Upon Landlord’s approval
of such expenditures, which approval shall not be unreasonably withheld, such expenditures shall be deemed to constitute Budgeted
Development Costs.

 

6.                  
Landlord's Obligations.

 

6.1               
Applications. Once each calendar month, but in no event earlier than twenty-one (21) calendar days after the last
such submission, Tenant may submit to Landlord a request for payment of a portion of Development costs (each, an “Application”).
Each Application shall include the following:

 

(a)                
A statement setting forth the total amount of the Construction Contribution Amount requested and supporting invoices from
the general contractor, architect and any subcontractors, material suppliers and other parties requesting payment with respect
to the amount of the Construction Contribution Amount then being requested, as evidenced by AIA document G 702 Application and
Certificate for Payment.

 

(b)               
A certification by the general contractor that the Improvements, or the portion thereof for which payment is requested in
that Application, has been completed pursuant to this Agreement and the applicable construction documents;

 

(c)                
Except with respect to the final Application, conditional lien waivers signed by every contractor, subcontractor and supplier
who has a mechanics lien right for any work for which payment is requested stating:

 

(i)                 
the contractor, subcontractor, supplier or other claimant waives conditionally any liens or right to lien with respect to
any work for which payment is being requested in that Application;

 

(ii)               
the amount theretofore received by such contractor, subcontractor or supplier;

 

(iii)             
that the contract with the contractor, subcontractor or supplier has not been changed, or, if the contract has been changed,
indicating the increase or decrease in the amount of the contract; and

 

(iv)              
A list of the names and addresses of major subcontractors and major suppliers of labor and materials used in connection
with the work for which payment is requested.

 

(d)               
With respect to any work covered by the immediately preceding Application, copies of sworn statements and unconditional
lien waivers signed by each contractor, subcontractor and supplier for whom such payment was made stating:

 

    10

     

    

 

(i)                 
that such contractor, subcontractor or material supplier unconditionally waives any liens or right to lien with respect
to work for which payment has been received by such contractor, subcontractor and material supplier;

 

(ii)               
the amount theretofore received by such contractor, subcontractor and material supplier; and

 

(iii)             
that the contract with the contractor, subcontractor or supplier has not been changed, or, if the contract has been changed,
indicating the increase or decrease in the amount of the contract.

 

6.2               
Construction Payment. Within ten (10) calendar days of receiving a complete Application, Landlord will pay to Tenant
the amount requested by Tenant in such Application (each such payment, a “Construction Payment”), provided that
the aggregate amount of the Construction Payments does not exceed the Construction Contribution Amount. Notwithstanding the foregoing
or any provision herein to the contrary, Landlord may withhold any Construction Payment, in whole or in part, upon the occurrence
and continuation of any Tenant Event of Default.

 

7.                  
No Other Compensation. Tenant acknowledges that Landlord’s agreement to enter into the Lease with Tenant and
Landlord’s agreement to pay the amounts required hereunder relating to the construction and completion of the Development
constitute the only compensation that Tenant is entitled to receive for the services to be performed and the work to be completed
by Tenant pursuant to this Agreement. Other than the Construction Payments paid to Tenant in accordance with the terms and conditions
of this Agreement, Tenant shall not be entitled to receive any payments, reimbursements or other compensation in connection with
the performance of its duties, responsibilities and obligations under this Agreement. Furthermore, to the extent that the Development
Costs exceed the amount of the Construction Contribution Amount, Tenant shall be solely responsible for all fees, costs and expenses
incurred in connection with the completion of the Development, including, without limitation, the following: (a) all salaries,
wages, compensation, bonuses and other benefits paid or payable to any and all employees, representatives, consultants, independent
contractors and agents of Tenant; (b) rent and overhead for the offices of Tenant; (c) telephone, telegraph, postage and utility
charges incurred by Tenant; (d) office supplies and materials of Tenant; and (e) any and all costs, fees and expenses incurred
by Tenant with respect to the purchase, lease, maintenance and/or repair of any equipment, machines, furniture, fixtures and other
personal property of Tenant.

 

8.                  
Authorized Excess Development Costs. In the event Tenant incurs any Excess Development Costs without first obtaining
Landlord’s prior written approval, such expenses shall be deemed to constitute “Unauthorized Excess Development
Costs,” and Tenant shall be obligated to pay or otherwise satisfy such Unauthorized Excess Development Costs. If Tenant
has obtained Landlord’s advanced written approval prior to incurring any Excess Development Costs in accordance with the
provisions of Section 4 hereof, such approved expenses shall be deemed to constitute “Authorized Excess Development Costs,”
and Landlord agrees to authorize the payment of (and reimburse Tenant for) such Authorized Excess Development Costs, subject to
and in accordance with the terms and conditions of Section 6 of this Agreement.

 

In the event Tenant
incurs any Unauthorized Excess Development Costs, Tenant hereby agrees to and shall indemnify, defend, hold harmless and protect
Landlord and the Land from and against any mechanic’s or materialmen’s liens, or other liens, liabilities or encumbrances
arising out of or in connection with any such Unauthorized Excess Development Costs.

 

Tenant shall follow
the procedures set forth in Section 6 of this Agreement with respect to processing any Application for payment requests in connection
with securing the payment of: (i) any Budgeted Development Costs; and (ii) any Authorized Excess Development Costs.

 

9.                  
Term and Termination.

 

9.1               
Term. The term of this Agreement (“Term”) shall commence on the Effective Date and shall terminate
on the earlier to occur of the following events (each, a “Termination Event”):

 

    11

     

    

 

(i)                 
The Completion Date, provided, however, that in the event there are any items of work on any Punch-Lists to be performed
subsequent to the Completion Date, the Term of this Agreement shall be extended until such time as the work to be performed pursuant
to such Punch-Lists has been completed to the reasonable satisfaction of the Landlord; or

 

(ii)               
Upon the termination of the Lease.

 

9.2               
Default by Tenant. The occurrence of one or more of the following events shall constitute an event of default by
Tenant under this Agreement (“Tenant Event of Default”):

 

(i)                 
The failure of Tenant to timely perform and satisfy any of the material duties and obligations of Tenant under this Agreement
and/or the Development Plan and Budget; provided, however, Tenant shall not be deemed to be in default of this Agreement if: (i)
in the event the default is a monetary default and Tenant cures such monetary default within ten (10) business days after receipt
of written notice from the Landlord of such monetary default; or (ii) in the event the default is a non-monetary default and Tenant
commences the cure of such non-monetary default as soon as reasonably practicable following written notice thereof from the Landlord
and completes such cure within thirty (30) calendar days after receipt of such written notice provided, however if such non-monetary
default cannot reasonably be cured within such thirty (30) calendar day period, Tenant shall not be deemed to be in default of
this Agreement if Tenant commences to cure such non-monetary default within such thirty (30) calendar day period, and thereafter
diligently pursues the same to completion; or

 

(ii)               
The commission of any act of gross negligence, willful misconduct, fraud, or intentional misrepresentation by Tenant, or
any executive-level employee of Tenant, in connection with the performance by Tenant of its duties and obligations under this Agreement;
or

 

(iii)             
The occurrence of any Default by Tenant under the Lease.

 

Upon the occurrence
of a Tenant Event of Default, Landlord and Tenant acknowledge and agree that such Tenant Event of Default shall constitute a Default
by Tenant under the Lease and Landlord shall have all of the rights and remedies afforded to Landlord upon the occurrence of a
Default by Tenant under the Lease, as well as any other rights and remedies afforded to Landlord at law or in equity, including,
without limitation, the right to seek specific performance. Notwithstanding the foregoing, each of Landlord and Tenant hereby waive
the right to recover consequential, special or punitive damages under this Agreement.

 

9.3               
Procedure Upon Termination – Tenant Event of Default. Upon the effective date of any termination of this Agreement
by Landlord due to a Tenant Event of Default, Landlord and Tenant hereby agree as follows:

 

(i)                 
Tenant shall deliver to Landlord all notes, inspections, documents, agendas, instruments, studies, reports, surveys, maps,
working plans, plans and specifications, correspondence, books and records, and all other materials in Tenant’s possession
or control relating to the Development, including, without limitation, all original Project Agreements and Development Approvals;
and

 

(ii)               
Tenant shall assign and transfer to Landlord all of Tenant’s right, title and interest in and under to all Development
Approvals and all Project Agreements in connection with the Development.

 

9.4               
Effect of Termination. The termination of this Agreement shall not affect the rights of the terminating party with
respect to any damages it has suffered as a result of any breach of this Agreement by the other party, nor shall it affect the
rights of either party with respect to liability or claims accrued, or arising out of, events occurring prior to the date of termination.
Neither the right of termination nor the right to sue for damages, nor any other remedy available to either party hereunder, shall
be exclusive of any other remedy given hereunder or now or hereafter existing at law or in equity.

 

9.5               
Inspections by Landlord. Landlord shall have the right to inspect the Development at any time that it may elect,
subject only to reasonable notice to Tenant and reasonable safety and security precautions which Tenant may impose with respect
to inspection of the Development. At any time upon reasonable notice to Tenant, Landlord shall also have the right to inspect the
books and records of Tenant relating to the construction, development and operation of the Development. To the extent that Landlord
desires to copy books and records or other information in the files of Tenant relating to any aspect of the Development or Tenant’s
performance hereunder, it may do so upon reasonable notice during normal business hours.

 

    12

     

    

 

9.6               
Indemnification.

 

(a)                
Indemnification by Tenant. Tenant hereby agrees to and shall indemnify, defend and hold harmless Landlord and its
Affiliates, and their respective managers, members, partners, shareholders, officers, directors, agents, employees, successors
and assigns, from and against any and all claims, demands, liabilities, causes of action, losses, costs, damages, expenses (including
reasonable attorneys’ fees) or judgments arising out of, or in connection with, the following matters: (a) a default in the
performance by Tenant of any of the covenants, duties or obligations to be performed by Tenant under this Agreement, including,
without limitation, the occurrence of a Tenant Event of Default; (b) the performance by Tenant of any acts in connection with the
Development or the Property outside the scope or the authority granted to Tenant under this Agreement; or (c) any gross negligence,
fraud or intentional misconduct on the part of Tenant in connection with the performance, or any attempted performance of its duties,
responsibilities or obligations under this Agreement; or (d) any negligence on the part of Tenant in connection with the performance,
or any attempted performance of its duties, responsibilities or obligations under this Agreement to the extent such claims, demands,
liabilities, causes of action, losses, costs, damages, expenses (including reasonable attorneys’ fees) or judgments are not
otherwise paid or fully satisfied from the proceeds of any of the insurance policies maintained by the Parties hereunder.

 

(b)               
Indemnification by Landlord. Landlord hereby agrees to and shall indemnify, defend and hold harmless Tenant and its
Affiliates, and their respective managers, members, partners, shareholders, officers, directors, agents, employees, successors
and assigns, from and against any and all claims, demands, liabilities, causes of action, losses, costs, damages, expenses (including
reasonable attorneys’ fees) or judgments arising out of, or in connection with, the following matters: (a) a default in the
performance by Landlord of any of the covenants, duties or obligations to be performed by Landlord under this Agreement, including,
without limitation, the occurrence of an Landlord Event of Default; (b) any gross negligence, fraud or intentional misconduct on
the part of Landlord in connection with the performance, or any attempted performance of its duties, responsibilities or obligations
under this Agreement; or (d) any negligence on the part of Landlord in connection with the performance, or any attempted performance
of its duties, responsibilities or obligations under this Agreement to the extent such claims, demands, liabilities, causes of
action, losses, costs, damages, expenses (including reasonable attorneys’ fees) or judgments are not otherwise paid or fully
satisfied from the proceeds of any of the insurance policies maintained by the Parties hereunder.

 

9.7               
Default by Landlord. The occurrence of one or more of the following events shall constitute an event of default by
Landlord under this Agreement (“Landlord Event of Default”):

 

(a)                
The failure of Landlord to timely perform and satisfy any of the material duties and obligations of Landlord under this
Agreement; provided, however, Landlord shall not be deemed to be in default of this Agreement if: (i) in the event the default
is a monetary default and Landlord cures such monetary default within ten (10) business days after receipt of written notice from
the Tenant of such monetary default; or (ii) in the event the default is a non-monetary default and Landlord commences the cure
of such non-monetary default as soon as reasonably practicable following written notice thereof from the Tenant and completes such
cure within thirty (30) calendar days after receipt of such written notice; provided, however if such non-monetary default cannot
reasonably be cured within such thirty (30) calendar day period, Landlord shall not be deemed to be in default of this Agreement
if Landlord commences to cure such non-monetary default within such thirty (30) calendar day period, and thereafter diligently
pursues the same to completion; and

 

(b)               
The commission of any act of gross negligence, willful misconduct, fraud, or intentional misrepresentation, or any executive-level
employee of Landlord, in connection with the performance by Landlord of its duties and obligations under this Agreement.

 

    13

     

    

 

Upon the occurrence
of a Landlord Event of Default, Landlord and Tenant acknowledge and agree that such Landlord Event of Default shall constitute
a Default by Landlord under the Lease and Tenant shall have all of the rights and remedies afforded to Tenant upon the occurrence
of a Default by Landlord under the Lease, as well as any other rights and remedies afforded to Tenant at law or in equity, including,
without limitation, the right to seek specific performance.

 

10.               
Insurance to Be Maintained by Tenant. During the Term of this Agreement, Tenant shall, at Tenant’s sole cost
and expense, obtain and keep in full force and effect the following specified insurance:

 

10.1            
Builder’s all-risk insurance covering the Improvements and all materials stored on the Land, together with such endorsements
as may be reasonably required by Landlord.

 

10.2            
Owner’s/Contractor’s protective liability insurance written on a broad-based occurrence coverage form against
claims for personal injury (including bodily injury and death) and property damage, with a reasonably acceptable deductible, with
a combined single limit for bodily injury and property damage of at least Two Million Dollars ($2,000,000) per occurrence.

 

10.3            
Comprehensive or commercial general liability insurance written on a broad-based occurrence coverage form against claims
for personal injury (including bodily injury and death) and property damage, with a reasonably acceptable deductible, with a combined
single limit for bodily injury and property damage of at least Two Million Dollars ($2,000,000) per occurrence.

 

10.4            
Owned, hired and non-owned automobile liability insurance on a broad-based occurrence coverage form covering all use of
all automobiles, trucks and other motor vehicles utilized by Tenant and Tenant’s employees in connection with this Agreement
with a combined single limit for bodily injury and property damage of at least One Million Dollars ($1,000,000) per occurrence.

 

10.5            
Workers’ compensation insurance for Tenant’s employees to the extent required by applicable law and such other
insurance that is necessary in connection with this Agreement that may be required by applicable law.

 

10.6            
In the event specific insurance coverage is required under any of the Project Agreements, the Tenant shall cause all insurance
coverages required under such Project Agreements to be obtained and maintained by the appropriate parties under the Project Agreements
in accordance with the terms and conditions of such Project Agreements.

 

Landlord and any of its
Affiliates designated by Landlord shall be included as an additional insured under the coverage specified in Sections 10.1 and
10.2 hereof. The insurance provided in this Section is primary and any other insurance maintained by such additional insured is
non-contributing with the insurance provided in this Section with respect to all claims or liabilities arising out of or resulting
from acts or omissions by or on behalf of the named insured. Each of the applicable insurance policies shall be issued by such
companies authorized to do business in the State of Pennsylvania. As evidence of the insurance coverage required pursuant to this
Section, Landlord will accept certificates issued by Tenant’s insurance carrier, acceptable to Landlord, showing such policies
are in full force and effect for the specified period, but Landlord has the right to review certified policies as reasonably necessary.
Such evidence shall be delivered to Landlord promptly upon execution of this Agreement. Each policy and certificate shall be subject
to Landlord’s reasonable approval and shall provide that such policy shall not be subject to material alteration to the detriment
of Landlord or Tenant or cancellation without thirty (30) calendar days’ notice in writing to be delivered by certified mail
to Landlord. Should any such policy of insurance expire or be canceled before the expiration of this Agreement and Tenant fails
to immediately replace such other insurance as specified, Landlord reserves the right, but shall have no obligation, to procure
such insurance at Tenant’s sole cost and expense.

 

In addition to the insurance
required to be maintained by Tenant pursuant to this Section 10, Tenant shall be responsible for requiring all of the contractors
and subcontractors doing construction work relating to the Development to purchase and maintain such insurance in conformance to
the requirements set forth on Exhibit D attached hereto and incorporated herein by reference. Tenant shall also allow Landlord
to inspect such evidence of insurance as Tenant obtains it from such contractors and subcontractors.

 

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11.               
Arbitration Procedure. In the event there is a dispute with respect to Landlord’s obligation to fund any Construction
Payment to Tenant pursuant to Section 6.2, such dispute shall be resolved in accordance with this Section 11. For the avoidance
of doubt, neither party shall be relieved of its obligations under this Agreement or the Lease during the pendency of any arbitration
proceeding conducted pursuant to this Section.

 

11.1            
Initial Meeting. If there is a claim, dispute, or other matter in question between Landlord and Tenant arising out
of, or relating to, Landlord’s obligation to make a Construction Payment to Tenant under this Agreement (each, a “Disbursement
Claim”), either party may give the other party written notice thereof and representatives of the parties (with or without
accompanying legal counsel) shall meet in person or via telephone conference (an “Initial Meeting”) at a mutually
agreed upon date and time (and location, if in person) within two (2) business days after the date of such notice. Each party’s
representative attending the Initial Meeting shall have plenary authority to resolve the Disbursement Claim and shall attempt
in good faith to resolve the Disbursement Claim in a mutually agreed upon manner at the Initial Meeting. If such Initial Meeting
does not result in a mutually agreed upon resolution of the Disbursement Claim, then the parties’ only options shall be to
either (i) waive the applicable Disbursement Claim, or (ii) pursue binding arbitration of the Disbursement Claim, as provided below.
If a party does not initiate the binding arbitration procedure as provided for below, then such party shall be deemed to have waived
the applicable Disbursement Claim (subject, however, to a party’s right to assert any appropriate counterclaims in the arbitration
procedure if the other party does in fact commence the binding arbitration procedure as provided below).

 

11.2            
Notice of Demand. No later than three (3) business days after the Initial Meeting, the complaining party may file
a notice of demand for arbitration (the “Notice of Demand”) with the Regional Office of the American Arbitration
Association (the “AAA”) nearest to the location of the Property and simultaneously give notice of such filing
with a copy of the Notice of Demand to the other party. The Notice of Demand shall set forth the nature of the Disbursement Claim
including the relief sought and the amount at issue.

 

11.3            
Arbitrators. The parties shall use a panel of three (3) arbitrators to resolve the Disbursement Claim (the “Panel”).
All arbitrators shall (A) be certified by the AAA, (B) have at least ten (10) years of experience in construction arbitration,
(C) be independent and unrelated in business or otherwise to the parties, and (D) have demonstrated a continuing commitment
to arbitration education and training.

 

11.4            
Selection of Arbitrator(s). The Panel shall consist of one (1) architect, engineer, licensed attorney, or former
judge (the “Architect Arbitrator”), one (1) general contractor, construction manager, licensed attorney, or
former judge (the “Contractor Arbitrator”), and one (1) licensed attorney or former judge (the “Attorney
Arbitrator”). The Attorney Arbitrator shall act as the chairperson of the Panel. The parties shall attempt to mutually
agree upon the composition of the entire Panel. If the parties are unable to agree upon the composition of the entire Panel within
three (3) business days after delivery of the Notice of Demand, the parties shall thereafter have two (2) business days to propose
the arbitrators as follows. Tenant shall select the Contractor Arbitrator and the Landlord shall select the Architect Arbitrator.
The two party-appointed arbitrators shall select the Attorney Arbitrator as the third arbitrator within two (2) business days thereafter.
If any arbitrators required to be selected are not selected within the foregoing time periods for any reason whatsoever, the AAA
shall select the applicable arbitrator(s) as soon as reasonably possible.

 

11.5            
Answer / Counterclaims. Within five (5) business days after receipt of the Notice of Demand, the other party shall
deliver to the Panel an answering statement. If no answering statement is filed within the stated time, the respondent will be
deemed to deny the claims in the Notice of Demand (and shall be deemed to have waived the right to assert any counterclaims). Failure
to file an answering statement shall not operate to delay the arbitration.

 

11.6            
Joinder of Parties. Any arbitration may include by consolidation, joinder, or otherwise, any person or entity not
a party to this Agreement if it is shown at the time the Notice of Demand is filed that (A) such person or entity is substantially
involved in a common question of fact or law, (B) the presence of such person or entity is required if complete relief is to be
afforded in the arbitration, and (C) the interest or responsibility of such person or entity in the matter is substantial;
and such person or entity consents to such consolidation or joinder. All Disbursement Claims alleged within the same Notice of
Demand shall be heard by the same Panel in the same arbitration.

 

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11.7            
Location. The arbitration hearing shall take place in the Boston, MA area at a specific location mutually agreed
to by Landlord and Tenant.

 

11.8            
Brief. At least five (5) business days before the arbitration hearing, each party shall prepare and submit to the
other party and the arbitrator(s) a brief or memorandum not to exceed five (5) pages discussing the issues, facts, applicable law
and/or contract provisions and their position on the applicable Disbursement Claims together with a copy of any documents (or pertinent
part thereof) referenced therein, except that any statutes or judicial decisions may simply be cited without attaching a copy.
Each party’s brief should also specify any witnesses or documents it wishes to subpoena for the hearing.

 

11.9            
Hearing.

 

(a)                
At the hearing, the claimant shall present evidence to support the applicable Disbursement Claim(s). The respondent shall
then present evidence supporting its defense. Witnesses for each party shall also submit to questions from the arbitrator and the
adverse party. Each party shall have the opportunity to question and review subpoenaed documents and witnesses based on its brief
or memorandum submitted under Section 11.8, above. The arbitrator has the discretion to vary this procedure, provided that the
parties are treated with equality and that each party has the right to be heard and is given a fair opportunity to present its
case. Evidence shall be permitted in accordance with the current AAA Construction Industry Arbitration Rules (the “AAA
Rules”).

 

(b)               
The arbitrator, exercising his or her discretion, shall conduct the proceedings with a view toward expediting the resolution
of the dispute and may direct the order of proof, bifurcate proceedings, and direct the parties to focus their presentations on
issues the decision of which could dispose of all or part of the case.

 

(c)                
When deemed appropriate, the arbitrator may also allow for the presentation of evidence by alternative means including video
conferencing, internet communication, telephonic conferences and means other than an in-person presentation. Such alternative means
must still afford a full opportunity for all parties to present any evidence that the arbitrator deems material and relevant to
the resolution of the dispute and when involving witnesses, provide an opportunity for cross-examination.

 

(d)               
The parties may mutually agree to waive oral hearings in any case.

 

11.10        
Written Opinion. The arbitrators shall render a written reasoned opinion regarding their decision (the “Final
Arbitration Decision”) with respect to the applicable Disbursement Claims as soon as practicable after conclusion of
the arbitration hearing, but in no event later than five (5) business days after conclusion of the arbitration hearing. The Final
Arbitration Decision shall be limited to whether or not Landlord breached its obligation to fund any Construction Payments that
are the subject of the Disbursement Claims and any resulting damages, including reimbursement of attorneys’ fees, awarded
by the arbitrators to the prevailing party; provided that, in rendering such Final Arbitration Decision, the arbitrators shall
take into account the remedies afforded to each party in the event of a default by the other party under the Lease so as to avoid
either party having the right to recover amounts, directly or indirectly, in excess of the total damages awarded to such party
pursuant to the Final Arbitration Decision, including, without limitation, any adjustment to Base Rent (as defined in the Lease)
pursuant to Section 5.2.3 of the Lease. Any such Construction Payment amounts required by be funded by Landlord pursuant to the
Final Arbitration Decision are referred to in the Lease as “Required Arbitration Construction Payments.” Furthermore,
the parties acknowledge and agree that the Final Arbitration Decision shall not be deemed or construed so as to imply that Landlord
has granted its consent, approval or authorization to the construction of any Improvements under this Agreement or the Lease or
to any other matters requiring Landlord’s consent.

 

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11.11        
Fees and Expenses for Arbitration. The arbitrators shall be authorized and directed to award the substantially prevailing
party in the arbitration with reimbursement of its arbitration and reasonable attorney’s fees, costs, and expenses. The arbitrators
shall select the substantially prevailing part in their reasonable discretion.

 

11.12        
Final and Binding. In accordance with the Federal Arbitration Act, the agreement to arbitrate in this Section 11
shall be final and incontestably binding upon the parties, and judgment may be entered in any court having jurisdiction.

 

11.13        
Confidentiality. The parties (including the arbitrators) shall keep confidential and not disclose to third-parties
the existence or outcome of any arbitration proceedings, except to the extent that disclosure is required by government authorities
or under applicable law, or as necessary to preserve or pursue a claim for reimbursement, contribution, or indemnity against a
third-party, or to preserve or pursue an insurance claim.

 

12.               
Miscellaneous.

 

12.1            
Notices. Any notice, request, demand, statement, authorization, approval, consent or other communication required
or permitted under this Agreement shall be in writing and shall be delivered in accordance with the notice provisions set forth
in Section 31 of the Lease.

 

12.2            
Entire Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject
matter covered by this Agreement. This Agreement supersedes all previous representations, arrangements, understandings and agreements
by and between the Parties and/or their Affiliates, with respect to the subject matter covered by this Agreement, and any such
representations, arrangements, understandings and agreements (other than this Agreement) are hereby cancelled and terminated in
all respects. This Agreement may not be amended, changed or modified except by a writing duly executed by both of the Parties hereto.

 

12.3            
Severability. If any provision of this Agreement, or any portion of any such provision, is held to be unenforceable
or invalid, the remaining provisions and portions shall nevertheless be carried into effect.

 

12.4            
Remedies. All rights and remedies of the Parties are separate and cumulative, and no one of them, whether exercised
or not, shall be deemed to be to the exclusion of or to limit or prejudice any other legal or equitable rights or remedies which
the Parties may have. The Parties shall not be deemed to waive any of their rights or remedies under this Agreement or otherwise
unless such waiver is in writing and signed by the party to be bound. No delay or omission on the part of either party in exercising
any right or remedy shall operate as a waiver of such right or remedy or any other right or remedy. A waiver on any one occasion
shall not be construed as a bar to a waiver of any right or remedy on any future occasion.

 

12.5            
Headings. The headings contained in this Agreement are for convenience only and are not a part of this Agreement,
and do not in any way interpret, limit or amplify the scope, extent or intent of this Agreement, or any of the provisions of this
Agreement.

 

12.6            
Assignment and Binding Effect. Neither Party may assign its rights or obligations under this Agreement, in whole
or in part, without the written consent of the other Party. This Agreement shall be binding upon and inure to the benefit of Landlord
and Tenant and, subject to the foregoing limitations, their respective successors and assigns.

 

12.7            
Incorporated by Reference. The Exhibits referred to in and attached to this Agreement are incorporated herein by
reference.

 

12.8            
Survival. Each provision of this Agreement which establishes rights and/or obligations which are intended to be enforceable
after termination of this Agreement (including, without limitation, Sections 9.4 and 9.6) shall survive the termination of this
Agreement and shall be binding upon the Parties for such period of time as may reasonably be required to give full effect to the
intended application thereof.

 

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12.9            
Capacity to Sign. All of the parties covenant that they possess all necessary capacity and authority to sign and
enter into this Agreement. All individuals signing this Agreement for a party that is a corporation, a limited liability company,
a partnership or other legal entity, covenant that they have the necessary capacity, authority and power to act on behalf of, sign
for and bind the respective entity on whose behalf they are signing.

 

12.10        
Attorneys’ Fees. In the event any action is initiated for any breach or default in any of the terms or conditions
of this Agreement, then the party in whose favor judgment shall be entered shall be entitled to have and recover from the non-prevailing
party all costs and expenses (including attorneys’ fees) incurred in such action and any appeal therefrom.

 

12.11        
Governing Law and Adjudication. This Agreement shall be governed by and interpreted in accordance with the laws (other
than that body of law relating to conflicts of law) of the State of Pennsylvania.

 

12.12        
Further Assurances. Landlord and Tenant shall reasonably cooperate and execute such other documents and instruments
reasonably requested by the other Party to more clearly evidence or carry out the provisions of this Agreement. Each Party shall
cooperate with the other as reasonably appropriate to facilitate performance by the other Party of its obligations under this Agreement.

 

12.13        
Counterparts. This Agreement may be executed in counterparts, each of which shall constitute an original, but all
of which together shall constitute one and the same agreement.

 

12.14        
Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF LANDLORD AND TENANT HEREBY WAIVES ANY RIGHT
TO TRIAL BY JURY ON ANY CLAIM, COUNTERCLAIM, SETOFF, DEMAND, ACTION OR CAUSE OF ACTION ARISING OUT OF OR IN ANY WAY PERTAINING
OR RELATING TO THIS CONTRACT OR IN ANY WAY CONNECTED WITH OR PERTAINING OR RELATED TO OR INCIDENTAL TO ANY DEALINGS OF THE PARTIES
HERETO WITH RESPECT TO THIS CONTRACT OR IN CONNECTION WITH THE TRANSACTIONS RELATED HERETO OR CONTEMPLATED HEREBY OR THE EXERCISE
OF ANY PARTY’S RIGHTS AND REMEDIES HEREUNDER, IN ALL OF THE FOREGOING CASES WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. EACH OF LANDLORD AND TENANT MAY FILE A COPY OF THIS SECTION WITH ANY COURT AS
WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED AGREEMENT OF THE OTHER PARTY TO WAIVE ITS RIGHT TO TRIAL BY JURY, AND
THAT, TO THE EXTENT PERMITTED BY APPLICABLE LAW, ANY DISPUTE OR CONTROVERSY WHATSOEVER BETWEEN LANDLORD AND TENANT SHALL INSTEAD
BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

12.15        
Venue. EACH PARTY IRREVOCABLY CONSENTS TO THE JURISDICTION OF THE STATE COURTS SITUATED IN OR HAVING JURISDICTION
OVER THE COUNTY OF LACKAWANNA, PENNSYLVANIA IN ANY ACTION THAT MAY BE BROUGHT FOR THE ENFORCEMENT OF THIS AGREEMENT (WITH THE EXPRESS
AGREEMENT THAT NO ACTION MAY BE BROUGHT IN FEDERAL COURT RELATING IN ANY WAY TO THIS AGREEMENT).

 

[Signature Page Follows]

 

    18

     

    

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date first above written.

 

	 	LANDLORD:
	 	 
	 	IIP- PA 4 LLC, a Delaware limited liability company
	 	 
	 	By:	/s/ Brian Wolfe	 
	 	Name:  	Brian Wolfe
	 	Title:	Vice President, General Counsel and Secretary
	 	 
	 	 
	 	TENANT:
	 	 
	 	PHARMACANN PENN PLANT LLC, a Pennsylvania limited liability company
	 	 
	 	By:	/s/ Brett Novey	 
	 	Name:  	Brett Novey
	 	Title:	Authorized Signatory

 

The undersigned hereby executes this agreement
to guaranty the payment obligations of the Landlord under this Agreement.

 

	 	PARENT COMPANY:
	 	 
	 	IIP OPERATING PARTNERSHIP, LP
	 	 
	 	By:	/s/ Brian Wolfe	 
	 	Name:  	Brian Wolfe
	 	Title:	Vice President, General Counsel and Secretary

 

[Signature Page to Development Agreement]

 

    19

     

    

 

EXHIBIT A

 

LEGAL DESCRIPTION OF LAND

 

ALL that certain piece
or parcel of land situate in the Township of Scott, County of Lackawanna, and Commonwealth of Pennsylvania bounded and described
as follows to wit:

 

BEING Lot 4 as shown
on plan entitled "LOT LINE CHANGE WITHIN SCOTT TECHNOLOGY PARK PHASE II/ LOTS- #4 AND #11 PROPOSED LOT LINES" recorded
in Map Book 6A, Page 9481, being more particularly described as follows, to-wit:

 

BEGINNING at a found
5/8" rebar on the southwesterly right-of-way line of Life Science Drive marking a common corner of Lot 4 and Lot 3, described
as per a survey performed by Engineering Surveying Consultants & Design Inc., on November 7, 2018;

 

THENCE along said common
line of the above mentioned Lot 4 and Lot 3 South 44'58'01" West six hundred two and seventy-nine hundredths (602.79') feet
to a found 5/8" iron pin at the Intersection of a stone row;

 

THENCE along lands now
or formerly of Virginia Wetherbee (DB 487 PG 751) and John J. Wasko (DB 1553 PG 666) North 48'40'54" West eleven hundred seventy-one
and five tenths (1171.50') feet to a point, passing a set 5/8" rebar at eight hundred eighty-six and fifteen hundredths (886.15')
feet;

 

THENCE along lands now
or formerly of John J. Wasko (DB 1553 PG 666) and Lisa Tizzoni (Instr.# 2006-34752) North 41'31'06" West six hundred sixty-nine
and sixty-six hundredths (669.66') feet to the corner of Lot 11 as shown on the above referenced plan;

 

THENCE along said Lot
11 and Lands now or formerly of Baldoni Investment Group, LLC (Instr.# 2015-12077) South 48'52'06" East eleven hundred forty-one
and ninety-seven hundredths (1141.97') feet to a found 5/8" rebar on the southwesterly right of way line of Life Science Drive,
passing a set 5/8" rebar at two hundred thirty-four and thirty-five hundredths (234.35') feet and a found 5/8" rebar
at seven hundred twenty-four and thirteen hundredths (724.13') feet;

 

THENCE along said right
of way line South 41'01'05" West two and eighteen hundredths (2.18') feet to a point of curvature;

 

THENCE continuing along
said right of way line, along a curve to the left having a radius of seventy (70') feet and an arc length of one hundred five and
twenty-seven hundredths feet (Chord: South 01'57'02 East 95.63') feet to the point of BEGINNING.

 

CONTAINING 18.287 acres,
of land being the same, more or less. BEING ALL of Lot 4 as shown on the above referenced plan;

 

BEING PART of lands conveyed
to Pharmacann Penn Plant, LLC by Scranton Lackawanna Industrial Building Company by deed dated December 10, 2018, effective December
12, 2018 recorded December 14, 2018 as Instrument No. 201820014 in the Office of the Recorder of Deeds in Lackawanna County, Pennsylvania;

 

BEING PART of PIN Number
071.04-010-004.03

 

    B-1

     

    

 

EXHIBIT B

 

DEPICTION OF IMPROVEMENTS

 

(see attached) 

 

    2

     

    

 

 

 

    	 	 	 

     

    

 

EXHIBIT C

 

DEVELOPMENT PLAN AND BUDGET

 

(see attached)

 

    C-1

     

    

 

 

 

    	 	 	 

     

    

 

	Budget
    Scott Township, PA 22,576 sf PEMB 30,704 sf Greenhouse Code Description 08/01/19 Scope Budget Target Variance Target Budget
    Summary $1,953,860 $1,298 $1,955,158 1 PharmaCann Soft Costs Not Included 2 PharmaCann FFE & Equipment Costs $26,920,977
    $(4,267,090) $22,653,887 3 Construction Costs Not Included 4 Temporary Grow $28,874,837 $(4,265,792) $24,609,045 5 $3,320,606
    $- $3,320,606 6 Owner's Project Contingency $32,195,443 $(4,265,792) $27,929,651 Add Alternates (Future) 1 Program Changes
    Contingency $1,000,000 $- $1,000,000 $1,000,000 $- $1,000,000 Soft Costs PharmaCann Costs Design Costs 1 Civil - GPI $81,630
    $- $81,630 2 Architect - Envision (Contract Fixed Fee) $140,000 $- $140,000 3 Architect - Envision (Additional Services -
    Redesign) $- $25,000 $25,000 4 Architect - Envision (Hourly) $- $26,298 $26,298 5 Wetlands Delineation - GPI $17,800 $- $17,800
    6 Structural - GPI $42,550 $- $42,550 7 MEP - ME $115,000 $- $115,000 8 Design Costs Total $396,980 $51,298 $448,278 AHJ Fees
    1 Permits $25,000 $- $25,000 Real Estate 1 Land Purchase $925,000 $- $925,000 2 Clearing $175,000 $- $175,000 Misc Fees 1
    Utility Fees $50,000 $- $50,000 2 Geotechnical Services - GeoScience Engineering $16,880 $- $16,880 3 Special Inspector -
    during construction $- $- $- 4 Builders Control - Escrow $- $- $- 5 Legal, Project Mgmt, Commissioning $365,000 $(50,000)
    $315,000 $1,953,860 $1,298 $1,955,158 Page 1 of 2 UPDATED: 08/01/19

    	 	 	 

     

    

 

	Budget
    Scott Township, PA 22,576 sf PEMB 30,704 sf Greenhouse Code Description 08/01/19 Scope Budget Target Variance Target Budget
    FFE PharmaCann Costs Vendor / Supplier Costs 1 Interior Signage $- $- $- 2 Exterior Signage $25,000 $- $25,000 3 Security
    / Access Control Design-Build $800,000 $- $800,000 4 Furniture - Office, Desk, Tables $87,500 $- $87,500 5 Equipment - Processing
    $2,200,000 $(1,000,000) $1,200,000 6 IT - Equipment, Install, Servers $100,000 $- $100,000 $3,212,500 $(1,000,000) $2,212,500
    Hard Costs 1 Sitework (SW) $3,500,000 $- 2 Headhouse (HH) $11,130,000 $- 3 Reduction Based on Accel Bidding (1) incl in SW/HH
    above $- 4 Premium for MBE/ WBE/ DBE Participation (2) $- $- 5 Eliminate GH Mezzanine (3) incl in GH below $- 6 Flooring -
    Alternate Material to Stonhard (4) incl in HH above $(251,080) 7 Flooring - Eliminate Areas Receiving Stonhard (5) incl in
    HH above $(176,253) 8 Reduce Quantity and Height of FRP (6) incl in HH above $(14,000) 9 Reduce Scope of Hard Ceilings (7)
    incl in HH above $(25,000) 10 Eliminate Color Band in Rooms (8) incl in HH above $(10,000) 11 Reduce Size of Boiler Building
    & Future Enabling (9) incl in SW/HH above $- 12 Eliminate Security Fence (10) incl in SW above $(300,000) 13 Toilet Room
    Fixture (manufacturer & style) (11) incl in HH above $- 14 Reduce Interior Build-Out (Shell Space for Future) (12) incl
    in HH above $(47,680) 15 Generator Costs (13) incl in HH above $- 16 Reduced Scope of Grow Lights in GH (14) incl in GL below
    $- 17 18 SUB-TOTAL $14,630,000 $(824,013) 19 Greenhouse (GH) (15) (16) $10,033,354 $(2,862,894) 20 SUBTOTAL $24,663,354 $(3,686,907)
    $20,976,447 21 Grow Lights (GL) $1,024,455 $(290,955) 22 4.5% Construction Contingency $1,233,168 $(289,228) $26,920,977 $(4,267,090)
    $22,653,887 Temporary Grow 1 Temporary Grow Facility $2,100,000 $- $2,100,000 $2,100,000 $- $2,100,000 PharmaCann Contingency
    1 7.0% PharmaCann Project Contingency $2,021,239 $2,021,239 2 4.5% Pre-Construction Bidding Contingency $1,299,368 $1,299,368
    $3,320,606 $- $3,320,606 Page 2 of 2 UPDATED: 08/01/19

    	 	 	 

     

    

 

EXHIBIT D

 

INSURANCE SCHEDULE

 

Tenant shall be responsible
for requiring all of Tenant contractors doing construction or renovation work to purchase and maintain such insurance as shall
protect it from the claims set forth below which may arise out of or result from any work performed in connection with the Development,
whether such work is completed by Tenant or by any contractors or by any person directly or indirectly employed by Tenant or by
any person for whose acts Tenant or any contractors may be liable:

 

1.       Claims
under workers’ compensation, disability benefit and other similar employee benefit acts which are applicable to the work
to be performed.

 

2.       Claims
for damages because of bodily injury, occupational sickness or disease, or death of employees under any applicable employer’s
liability law.

 

3.       Claims
for damages because of bodily injury, or death of any person other than Tenant’s employees or any contractors’ employees.

 

4.       Claims
for damages insured by usual personal injury liability coverage which are sustained (a) by any person as a result of an offense
directly or indirectly related to the employment of such person by Tenant or any contractors or (b) by any other person.

 

5.       Claims
for damages, other than for the work itself, because of injury to or destruction of tangible property, including loss of use therefrom.

 

6.       Claims
for damages because of bodily injury or death of any person or property damage arising out of the ownership, maintenance or use
of any motor vehicle.

 

Each contractor’s
Commercial General, Automobile, Employers and Umbrella Liability Insurance shall be written for not less than limits of liability
as follows:

 

	
        a.       Commercial
        General Liability:

        

        Bodily Injury and Property Damage

         

         
	
        Commercially reasonable amounts, but in
        any event no less than $1,000,000 per occurrence and $2,000,000 general aggregate, with $2,000,000 products and completed operations
        aggregate.

         

         

        

	
        b.       Commercial
        Automobile Liability:

        

        Bodily Injury and Property Damage

         
	$1,000,000 per accident
	
        c.       Employer’s
        Liability:

        

        Each Accident

        Disease – Policy Limit

        Disease – Each Employee

         
	
         

         

        $500,000

        $500,000

        $500,000

         

	
        d.       Umbrella
        Liability:

        

        Bodily Injury and Property
Damage
	Commercially reasonable amounts (excess of coverages a, b and c above), but in any event no less than $5,000,000 per occurrence / aggregate.

 

    D-1

     

    

 

All subcontractors shall carry the same
coverages and limits as specified above, unless different limits are reasonably approved by Landlord. The foregoing policies shall
contain a provision that coverages afforded under the policies shall not be canceled or not renewed until at least thirty (30)
days’ prior written notice has been given to Landlord. Certificates of insurance including required endorsements showing
such coverages to be in force shall be filed with Landlord prior to the commencement of any work by such contractor or subcontractor
and prior to each renewal. Coverage for completed operations must be maintained for the lesser of ten (10) years and the applicable
statue of repose following completion of the Improvements, and certificates evidencing this coverage must be provided to Landlord.
The minimum A.M. Best’s rating of each insurer shall be A- VII. Landlord shall be named as an additional insured under each
contractor’s Commercial General Liability, Commercial Automobile Liability and Umbrella Liability Insurance policies as respects
liability arising from work or operations performed, or ownership, maintenance or use of autos, by or on behalf of such contractor.
Each contractor and its insurers shall provide waivers of subrogation with respect to any claims covered or that should have been
covered by valid and collectible insurance, including any deductibles or self-insurance maintained thereunder.

 

    2Exhibit 10.3

 

MULTI-PARTY PA AGREEMENT 

  

This Multi-Party PA
Agreement (the “Multi-Party PA Agreement”) is made as of this 9th day of August, 2019 between and among IIP-PA
4 LLC, a Delaware limited liability company (the “Landlord”); PHARMACANN PENN PLANT LLC, a Pennsylvania limited
liability company (the “Tenant”); and MEDMEN ENTERPRISES INC., a British Columbia corporation (“MedMen”).

 

The foregoing entities
are sometimes individually referred to herein as a “Party” and collectively referred to as the “Parties”.
Any initially capitalized term not separately defined herein shall have the meaning set forth in the Lease (as defined below).

 

RECITALS:

 

A.                
Reference is made to that certain Lease Agreement dated August 9, 2019 (the “Lease”) between the Landlord
and Tenant regarding certain real property and the improvements located at located at Lot No. 4 in Scott Technology Park, Scott
Township, Pennsylvania (as more fully described in the Lease, the “Property”). The Lease, along with the Purchase
and Sale Agreement under which the Landlord acquired the Property from Tenant, the Development Agreement (the “Development
Agreement”) executed by and between the Tenant, Landlord, and IIP OPERATING PARTNERSHIP, LP, a Delaware limited partnership
(“IIP”), and that certain side letter agreement entered into by and between Landlord and Tenant in connection
therewith (the “Letter Agreement”), all of which documents are dated as of the date of this Multi-Party
PA Agreement, are collectively referred to herein as the “Transaction Documents.”

 

B.                 
PharmaCann LLC (“PharmaCann”) is the owner of 98% of the direct or indirect ownership interests in Tenant,
and PharmaCann Foundation Inc. is the owner of the remaining 2%.

 

C.                 
PharmaCann and MedMen have entered into a Business Combination Agreement dated December 23, 2018 (the “BCA”)
to combine the businesses conducted by MedMen and PharmaCann under which New MedMen Inc., a British Columbia corporation (“MedMen
ParentCo”), will be the surviving parent company for both MedMen and PharmaCann (the transaction contemplated under the
terms of the BCA is referred to herein as the “Merger Transaction”).

 

D.                
The Parties desire to memorialize certain rights and obligations with respect to the Lease and to amend the Lease as more
fully set forth below.

 

In consideration of
the foregoing and of the rights and obligations of the Parties hereunder and other good and valuable consideration, the sufficiency
and receipt of which is hereby acknowledged, the Parties hereby agree as follows:

 

1.           Recitals/Exhibits.
The Recitals set forth above and Exhibit 1 attached hereto are incorporated herein and made a part of this Multi-Party
PA Agreement.

 

2.           Landlord
Acknowledgement of Permitted Transfer. Landlord hereby acknowledges that the Transfer from Tenant to MedMen as a result of
the consummation of the Merger Transaction shall constitute a Permitted Transfer under the Lease.

 

3.           MedMen
Consent to the Transaction Documents. MedMen hereby consents and approves of (a) the Transaction Documents and (b) the execution
of the Transaction Documents by Tenant and the applicable Guarantor entities that are affiliates of Tenant.

 

4.          Amendments
to the Leases. Each of Landlord and Tenant hereby agrees to amend the Lease as set forth below, which amendments will only
be effective upon satisfaction of the conditions described in this Section 4. The amendments described in Subsection
4(a) and (b) shall be deemed effective only upon the closing and consummation of the Merger Transaction in accordance
with the BCA. The closing date of the Merger Transaction shall be deemed to be the effective date of the amendments to the Lease
pursuant to this Section 4. The amendment described in Subsection 4(c) shall be deemed effective only (i) upon receipt
of all of the License Change Approvals (as defined below) and the expiration of any appeal periods in connection therewith, and
(ii) the Tenant becoming, directly or indirectly, a majority-owned subsidiary of MedMen ParentCo.

 

     

     

    

 

(a)           Guarantees:
Section 33 of the Lease is deleted in its entirety and replaced with the following:

 

“Tenant
acknowledges and agrees that Landlord entered into the Multi-Party PA Agreement on the basis of Landlord's evaluation of the overall
financial condition, business operations and potential business expansion opportunities of Tenant and New MedMen Inc., a British
Columbia corporation (“New Guarantor”), both at the Premises and at other locations in and outside of the State
in which the Premises is located. As such, promptly following written notice from Landlord to both Tenant and MedMen ParentCo,
Tenant will cause New Guarantor to promptly execute and deliver to Landlord a guaranty in the form attached to the Multi-Party
PA Agreement as Exhibit 1 and incorporated herein by reference (the “New Guaranty”). For purposes of
this Lease, the term “Guarantor” under the Lease shall be deemed to include the New Guarantor, and the term “Guaranty”
under this Lease shall be deemed to include such New Guaranty. The obligations of each Guarantor shall be joint and several and
Tenant shall cause each Guarantor to execute and deliver such further documentation as may be reasonably required to confirm such
Guarantor's full and unconditional guaranty of Tenant's obligations under this Lease. Notwithstanding anything in this Lease or
any Guaranty to the contrary, following Tenant’s written request (and subject to satisfaction of the conditions set forth
below), Landlord agrees to execute a commercially reasonable form of subordination agreement that subordinates Landlord's rights
under a Guaranty to an institutional lender’s or third party financing source’s rights with respect to a contemplated
financing by the applicable Guarantor, provided that the following conditions are satisfied: 1) the subordination of the Landlord’s
rights under the applicable Guaranty is a material requirement of the lender or other third party financing source to provide the
financing to the Guarantor; and 2) at the time of Landlord's execution of such subordination agreement, (a) neither Tenant nor
any Guarantor is then in default of its obligations under the Lease or any Guaranty; and (b) neither Tenant nor any Guarantor has
defaulted on its obligations under either the Lease or any Guaranty more than two (2) times during the immediately preceding six
(6) month period.” 

 

(b)           Financial
Reporting: Section 34.1 of the Lease is deleted in its entirety and replaced with the following:

 

“To
induce Landlord to enter into this Lease, MedMen ParentCo agrees that it shall, within one-hundred and twenty (120) days after
the end of MedMen ParentCo's financial year, furnish Landlord with a certified copy of MedMen ParentCo’s audited year-end
consolidated financial statements for the previous year. MedMen ParentCo represents and warrants that all financial statements,
records and information furnished by MedMen ParentCo to Landlord in connection with this Lease are true, correct and complete in
all respects. If audited financials are not otherwise prepared, unaudited financials certified by an officer of MedMen ParentCo
as true, correct and complete in all respects shall suffice for purposes of this Section. In addition, promptly after produced,
MedMen ParentCo shall furnish Landlord, upon Landlord's request, unaudited financial statements for the quarter and stub period
then-ended for MedMen ParentCo's first, second and third fiscal quarters. The provisions of this Section shall not apply at any
time while MedMen ParentCo's are traded on any nationally recognized Canadian or United States stock exchange.”

 

    2 

     

    

 

(c)           Put
Right in Lease: Section 32 of the Lease is deleted in its entirety.

 

5.          
License and Lease Transfer. The Tenant, and MedMen (as it relates to MedMen, only to the extent, and for so long
as, MedMen is required to do so under the BCA) agree to continue to use commercially reasonable efforts to obtain all required
approvals, consents and/or authorizations (or written confirmation that there is no objection) with respect to the change in ownership
and control of the Tenant pursuant to the Merger Transaction and the resulting change in control of the license issued by the Pennsylvania
Department of Health with respect to the Property (the “License Change Approvals”). Tenant agrees to promptly
provide Landlord with all documents, instruments and correspondence evidencing the License Change Approvals upon receipt thereof.
Promptly following Landlord’s request, the Tenant will execute, and MedMen will cause MedMen ParentCo to execute, any documents
required to be executed and delivered under the Lease (as amended pursuant to Section 4) following receipt of the License
Change Approvals.

 

6.          
Entire Agreement/Waiver/Modification. This Multi-Party PA Agreement, including all Exhibits hereto, and each Lease
(as applicable) contain the entire agreement between the Parties pertaining to the subject matter hereof and fully supersedes all
prior written or oral agreements and understandings between the Parties pertaining to such subject matter, all of which are merged
herein. No modification of or supplement to any term or provision of this Multi-Party PA Agreement shall be effective unless the
same is made in writing and signed by all Parties. No waiver respecting any term or provision of this Multi-Party PA Agreement
or any Exhibit shall be effective unless the same is made in writing and signed by the Party benefited by the term or provision.
No written and signed modification, waiver or supplement of or relating to this Multi-Party PA Agreement or any Exhibit shall have
any force or effect beyond the specific instance or purpose for which the same is given or made.

 

7.           Notices.
Any notice, consent, demand, invoice, statement or other communication required or permitted to be given under this Multi-Party
PA Agreement shall made in accordance with the provisions of the applicable Lease. Any notice to MedMen shall be sent to the following
address:

 

10115 Jefferson
Boulevard

Culver City,
CA 90232

E-mail:
_________________

Attention:
General Counsel

 

8.           Severability.  Any provision of this Multi-Party PA Agreement that shall prove to be invalid, void or illegal shall in no way affect, impair
or invalidate any other provision hereof, and all other provisions of this Multi-Party PA Agreement shall remain in full force
and effect and shall be interpreted as if the invalid, void or illegal provision did not exist.

 

9.           Counterparts;
Facsimile and PDF Signatures. This Multi-Party PA Agreement may be executed in one or more counterparts, each of which, when
taken together, shall constitute one and the same document. A facsimile or portable document format (PDF) signature on this Multi-Party
PA Agreement shall be equivalent to, and have the same force and effect as, an original signature.

 

10.        Attorneys' Fees. If any Party commences an action, proceeding, demand, claim, action, cause of action or suit against
any other Party arising out of or in connection with this Multi-Party PA Agreement, then the substantially prevailing Party shall
be reimbursed by the Party at fault for all reasonable costs and expenses, including reasonable attorneys' fees and expenses, incurred
by the substantially prevailing Party in such action, proceeding, demand, claim, action, cause of action or suit, and in any appeal
in connection therewith (regardless of whether the applicable action, proceeding, demand, claim, action, cause of action, suit
or appeal is voluntarily withdrawn or dismissed).

 

    3 

     

    

 

11.         Governing
Law; Jurisdiction and Venue. This Multi-Party PA Agreement shall be governed by and construed in accordance with the laws
of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware
or any other jurisdiction). Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property,
to the exclusive jurisdiction of the Delaware Court of Chancery and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Multi-Party PA Agreement or for recognition or enforcement of any judgment relating thereto,
and each of the parties hereby irrevocably and unconditionally (a) agrees not to commence any such action or proceeding except
in the Delaware Court of Chancery, (b) agrees that any claim in respect of any such action or proceeding may be heard and determined
in the Delaware Court of Chancery and any appellate court from any thereof, (c) waives, to the fullest extent it may legally and
effectively do so, any objection which it may now or hereafter have to the laying of venue of any such action or proceeding in
the Delaware Court of Chancery, and (d) waives, to the fullest extent it may legally and effectively do so, the defense of an
inconvenient forum to the maintenance of such action or proceeding in the Delaware Court of Chancery.

 

12.         Waiver
of Jury Trial. To the extent permitted by applicable laws, the Parties waive trial by jury in any action, proceeding or counterclaim
brought by the other Party hereto related to matters arising out of or in any way connected with this Multi-Party PA Agreement.

 

13.         No
Third Party Beneficiary. This Multi-Party PA Agreement is for the sole benefit of the Parties and their respective heirs,
legatees, devisees, executors, administrators and permitted successors and assigns, and nothing in this Multi-Party PA Agreement
shall give or be construed to give any other person or entity any legal or equitable rights.

 

14.         Successors
and Assigns. Each of the covenants, conditions and agreements contained in this Multi-Party PA Agreement shall inure to the
benefit of and shall apply to and be binding upon the Parties hereto and their respective heirs, legatees, devisees, executors,
administrators and permitted successors and assigns.

 

15.         Authority
to Bind MedMen ParentCo. MedMen represents and warrants that, by signing this Multi-Party PA Agreement, it has full authority
to bind MedMen ParentCo to perform any and all obligations of MedMen ParentCo under this Multi-Party PA Agreement, now and in
the future.

 

16.         Time
of the Essence. Time is of the essence with respect to the performance of every provision in this Multi-Party PA Agreement.

 

[NO FURTHER TEXT ON THIS
PAGE – SIGNATURES PAGES FOLLOW]

 

    4 

     

    

 

IN WITNESS WHEREOF,
the undersigned Parties have executed this Multi-Party PA Agreement as of the date first above written.

 

	IIP-PA 4 LLC,	 	PHARMACANN PENN PLANT LLC,
	a Delaware limited liability company	 	a Pennsylvania limited liability company
	 	 	 	 
	By:  	/s/ Brian Wolfe	 	By: 	/s/ Brett Novey
	Name:	Brian Wolfe	 	Name:	Brett Novey
	Its:	Vice President, General Counsel and Secretary	 	Its: 	Authorized Signatory 
	 	 	 	 
	MEDMEN ENTERPRISES, INC.,

a British Columbia corporation

	 	 
	 	 	 	 
	By:	
        /s/ Adam Bierman

        
	 	 
	Name:	Adam Bierman	 	 
	Its:	CEO	 	 

 

     

     

    

 

EXHIBIT 1

 

FORM OF GUARANTY

 

This Guaranty of Lease
("Guaranty") is executed effective on the ____ day of [_______], 20__, by [_______], a [_______] ("Guarantor"),
whose address for notices is [________________], in favor of IIP-PA 4 LLC, a Delaware limited liability company ("Landlord"),
whose address for notices is 11440 West Bernardo Court, Suite 220, San Diego, California 92127, Attn: General Counsel.

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor covenants and agrees as follows:

 

1.          
Recitals. This Guaranty is made with reference to the following recitals of facts which constitute a material part
of this Guaranty:

 

(a)               
Landlord, as Landlord, and PharmaCann Penn Plant LLC, a Pennsylvania limited liability company, as Tenant ("Tenant"),
entered into that certain Lease dated as of [______], 2019 (the "Lease"), with respect to the property located
at Lot No. 4 in Scott Technology Park, Scott Township, Pennsylvania, as more particularly described in the Lease (the "Leased
Premises").

 

(b)               
Guarantor is the indirect parent to Tenant and is therefore receiving a substantial benefit for executing this Guaranty.

 

(c)               
Landlord would not have entered into the Lease with Tenant without having received the Guaranty executed by Guarantor as
an inducement to Landlord.

 

(d)               
By this Guaranty, Guarantor intends to absolutely, unconditionally and irrevocably guarantee the full, timely, and complete
(i) payment of all rent and other sums required to be paid by Tenant under the Lease and any other indebtedness of Tenant, (ii)
performance of all other terms, covenants, conditions and obligations of Tenant arising out of the Lease (including, without limitation,
reasonable attorneys' fees and disbursements and all litigation costs and expenses incurred or payable by Landlord or for which
Landlord may be responsible or liable, or caused by any such uncured default), and (iii) payment of any and all expenses (including
reasonable attorneys' fees and expenses and litigation expenses) incurred by Landlord in enforcing any of the rights under the
Lease or this Guaranty within five (5) days after Landlord's demand thereafter (collectively, the "Guaranteed Obligations").

 

2.           Guaranty.
From and after the Execution Date (as such term is defined under the Lease), Guarantor absolutely, unconditionally and irrevocably
guarantees, as principal obligor and not merely as surety, to Landlord, the full, timely and unconditional payment and performance,
of the Guaranteed Obligations strictly in accordance with the terms of the Lease, as such Guaranteed Obligations may be modified,
amended, extended or renewed from time to time. This is a Guaranty of payment and performance and not merely of collection. Guarantor
agrees that Guarantor is primarily liable for and responsible for the payment and performance of the Guaranteed Obligations. Guarantor
shall be bound by all of the provisions, terms, conditions, restrictions and limitations contained in the Lease which are to be
observed or performed by Tenant, the same as if Guarantor was named therein as Tenant with joint and several liability with Tenant,
and any remedies that Landlord has under the Lease against Tenant shall apply to Guarantor as well. If Tenant defaults in any
Guaranteed Obligation under the Lease, Guarantor shall in lawful money of the United States, pay to Landlord on demand the amount
due and owing under the Lease. Guarantor waives any rights to notices of acceptance, modifications, amendment, extension or breach
of the Lease. If Guarantor is a natural person, it is expressly agreed that this guaranty shall survive the death of such guarantor
and shall continue in effect. The obligations of Guarantor under this Guaranty are independent of the obligations of Tenant or
any other guarantor. Guarantor acknowledges that this Guaranty and Guarantor's obligations and liabilities under this Guaranty
are and shall at all times continue to be absolute and unconditional in all respects and shall be the separate and independent
undertaking of Guarantor without regard to the genuineness, validity, legality or enforceability of the Lease, and shall at all
times be valid and enforceable irrespective of any other agreements or circumstances of any nature whatsoever which might otherwise
constitute a defense to this Guaranty and the obligations and liabilities of Guarantor under this Guaranty or the obligations
or liabilities of any other person or entity (including, without limitation, Tenant) relating to this Guaranty or the obligations
or liabilities of Guarantor hereunder or otherwise with respect to the Lease or to Tenant. Guarantor hereby absolutely, unconditionally
and irrevocably waives any and all rights it may have to assert any defense, set-off (except to the extent expressly provided
for under the Lease), counterclaim or cross-claim of any nature whatsoever with respect to this Guaranty or the obligations or
liabilities of Guarantor under this Guaranty or the obligations or liabilities of any other person or entity (including, without
limitation, Tenant) relating to this Guaranty or the obligations or liabilities of Guarantor under this Guaranty or otherwise
with respect to the Lease, in any action or proceeding brought by the holder hereof to enforce the obligations or liabilities
of Guarantor under this Guaranty. This Guaranty sets forth the entire agreement and understanding of Landlord and Guarantor, and
Guarantor acknowledges that no oral or other agreements, understandings, representations or warranties exist with respect to this
Guaranty or with respect to the obligations or liabilities of Guarantor under this Guaranty. The obligations of Guarantor under
this Guaranty shall be continuing and irrevocable (a) during any period of time when the liability of Tenant under the Lease continues,
and (b) until all of the Guaranteed Obligations have been fully discharged by payment, performance or compliance. If at any time
all or any part of any payment received by Landlord from Tenant or Guarantor or any other person under or with respect to the
Lease or this Guaranty has been refunded or rescinded pursuant to any court order, or declared to be fraudulent or preferential,
or are set aside or otherwise are required to be repaid to Tenant, its estate, trustee, receiver or any other party, including
as a result of the insolvency, bankruptcy or reorganization of Tenant or any other party (an "Invalidated Payment"),
then Guarantor's obligations under the Guaranty shall, to the extent of such Invalidated Payment be reinstated and deemed to have
continued in existence as of the date that the original payment occurred. This Guaranty shall not be affected or limited in any
manner by whether Tenant may be liable, with respect to the Guaranteed Obligations individually, jointly with other primarily,
or secondarily.

 

    

     

    

 

3.           No
Impairment of Guaranteed Obligations. Guarantor further agrees that Guarantor's liability for the Guaranteed Obligations shall
in no way be released, discharged, impaired or affected or subject to any counterclaim, setoff or deduction by (a) any waiver,
consent, extension, indulgence, compromise, release, departure from or other action or inaction of Landlord under or in respect
of the Lease or this Guaranty, or any obligation or liability of Tenant, or any exercise or non-exercise of any right, remedy,
power or privilege under or in respect to the Lease or this Guaranty, (b) any change in the time, manner or place of payment or
performance of the Guaranteed Obligations, (c) the acceptance by Landlord of any additional security or any increase, substitution
or change therein, (d) the release by Landlord of any security or any withdrawal thereof or decrease therein, (e) any assignment
of the Lease or any subletting of all or any portion of the Leased Premises (with or without Landlord's consent), (f) any holdover
by Tenant beyond the term of the Lease (g) any termination of the Lease, (h) any release or discharge of Tenant in any bankruptcy,
receivership or other similar proceedings, (i) the impairment, limitation or modification of the liability of Tenant or the estate
of Tenant in bankruptcy or of any remedy for the enforcement of Tenant's liability under the Lease resulting from the operation
of any present or future provisions of any bankruptcy code or other statute or from the decision in any court, or the rejection
or disaffirmance of the Lease in any such proceedings, (j) any merger, consolidation, reorganization or similar transaction involving
Tenant, even if Tenant ceases to exist as a result of such transaction, (k) the change in the corporate relationship between Tenant
and Guarantor or any termination of such relationship, (l) any change in the direct or indirect ownership of all or any part of
the shares in Tenant, or (m) to the extent permitted under applicable law, any other occurrence or circumstance whatsoever, whether
similar or dissimilar to the foregoing, which might otherwise constitute a legal or equitable defense or discharge of the liabilities
of Guarantor or which might otherwise limit recourse against Guarantor. Guarantor further understands and agrees that Landlord
may at any time enter into agreements with Tenant to amend and modify the Lease, and may waive or release any provision or provisions
of the Lease, and, with reference to such instruments, may make and enter into any such agreement or agreements as Landlord and
Tenant may deem proper and desirable, without in any manner impairing or affecting this Guaranty or any of Landlord's rights hereunder
or Guarantor's obligations hereunder, unless otherwise agreed in writing thereunder or under the Lease.

 

    

     

    

 

4.          
Remedies.

 

a)                
If Tenant defaults with respect to the Guaranteed Obligations, and if Guarantor does not fulfill
Tenant's obligations within thirty (30) days following its receipt of written notice of such default from Landlord, Landlord may
at its election proceed immediately against Guarantor, Tenant, or any combination of Tenant, Guarantor, and/or any other guarantor.
It is not necessary for Landlord, in order to enforce payment and performance by Guarantor under this Guaranty, first or contemporaneously
to institute suit or exhaust remedies against Tenant or other liable for any of the Guaranteed Obligations or to enforce rights
against any collateral securing any of it. Guarantor hereby waives any right to require Landlord to join Tenant in any action
brought hereunder or to commence any action against or obtain any judgment against Tenant or to pursue any other remedy or enforce
any other right. If any portion of the Guaranteed Obligations terminates and Landlord continues to have any rights that it may
enforce against Tenant under the Lease after such termination, then Landlord may at its election enforce such rights against Guarantor.
Unless and until all Guaranteed Obligations have been fully satisfied, Guarantor shall not be released from its obligations under
this Guaranty irrespective of: (i) the exercise (or failure to exercise) by Landlord of any of Landlord's rights or remedies (including,
without limitation, compromise or adjustment of the Guaranteed Obligations or any part thereof); or (ii) any release by Landlord
in favor of Tenant regarding the fulfillment by Tenant of any obligation under the Lease.

 

b)                
Notwithstanding anything in the foregoing to the contrary, Guarantor hereby covenants and agrees
to and with Landlord that Guarantor may be joined in any action by or against Tenant in connection with the Lease. Guarantor also
agrees that, in any jurisdiction, it will be conclusively bound by the judgment in any such action by or against Tenant (wherever
brought) as if Guarantor were a party to such action even though Guarantor is not joined as a party in such action.

 

5.           Waivers.
With the exception of the defense of prior payment, performance or compliance by Tenant or Guarantor of or with the Guaranteed
Obligations which Guarantor is called upon to pay or perform, or the defense that Landlord's claim against Guarantor is barred
by the applicable statute of limitations, Guarantor hereby waives and releases all defenses of the law of guaranty or suretyship
to the extent permitted by law.

 

6.         
Rights Cumulative. All rights, powers and remedies of Landlord under this Guaranty shall be cumulative and in addition
to all rights, powers and remedies given to Landlord by law.

 

7.           Representations
and Warranties. Guarantor hereby represents and warrants that (a) Landlord has made no representation to Guarantor as to the
creditworthiness or financial condition of Tenant; (b) Guarantor has full power to execute, deliver and carry out the terms and
provisions of this Guaranty and has taken all necessary action to authorize the execution, delivery and performance of this Guaranty;
(c) Guarantor's execution and delivery of, and the performance of its obligations under, this Guaranty does not conflict with
or violate any of Guarantor's organizational documents, or any contract, agreement or decree which Guarantor is a party to or
which is binding on Guarantor; (d) the individual executing this Guaranty on behalf of Guarantor has the authority to bind Guarantor
to the terms and conditions of this Guaranty; (e) Guarantor has been represented by counsel of its choice in connection with this
Guaranty; (f) this Guaranty when executed and delivered shall constitute the legal, valid and binding obligations of Guarantor
enforceable against Guarantor in accordance with its terms; and (g) there is no action, suit, or proceeding pending or, to the
knowledge of Guarantor, threatened against Guarantor before or by any governmental authority which questions the validity or enforceability
of, or Guarantor's ability to perform under, this Guaranty.

 

    

     

    

 

8.           Subordination.
In the event of Tenant's insolvency or the disposition of the assets of Tenant, through bankruptcy, by an assignment for the
benefit of creditors, by voluntary liquidation, or otherwise, the assets of Tenant applicable to the payment of all claims of
Landlord and/or Guarantor shall be paid to Landlord and shall be first applied by Landlord to the Guaranteed Obligations. Any
indebtedness of Tenant now or hereafter held by Guarantor, whether as original creditor or assignee or by way of subrogation,
restitution, reimbursement, indemnification or otherwise, is hereby subordinated in right of payment to the Guaranteed Obligations.
So long as an uncured event of default exists under the Lease, (a) at Landlord's written request, Guarantor shall cause Tenant
to pay to Landlord all or any part of any funds invested in or loaned to Tenant by Guarantor which Guarantor is entitled to withdraw
or collect and (b) any such indebtedness or other amount collected or received by Guarantor shall be held in trust for Landlord
and shall forthwith be paid over to Landlord to be credited and applied against the Guaranteed Obligations. Subject to the foregoing,
Guarantor shall be entitled to receive from Landlord any amounts that are, from time to time, due to Guarantor in the ordinary
course of business. Until all of Tenant's obligations under the Lease are fully performed, Guarantor shall have no right of subrogation
against Tenant by reason of any payments, acts or performance by Guarantor under this Guaranty.

 

9.           Governing Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of Pennsylvania,
United States of America, without regard to principles of conflicts of laws. TO THE FULLEST EXTENT PERMITTED BY LAW, GUARANTOR
HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS GUARANTY.
EACH PARTY IRREVOCABLY CONSENTS TO THE JURISDICTION OF THE STATE COURTS SITUATED IN OR HAVING JURISDICTION OVER SCOTT TOWNSHIP,
PENNSYLVANIA IN ANY ACTION THAT MAY BE BROUGHT FOR THE ENFORCEMENT OF THIS GUARANTY (WITH THE EXPRESS AGREEMENT THAT NO ACTION
MAY BE BROUGHT IN FEDERAL COURT RELATING IN ANY WAY TO THIS GUARANTY OR THE LEASE).

 

10.         Attorneys'
Fees. In the event any litigation or other proceeding ("Proceeding") is initiated by any party against any
other party to enforce this Guaranty, the prevailing party in such Proceeding shall be entitled to recover from the unsuccessful
party all costs, expenses, and actual reasonable attorneys' fees relating to or arising out of such Proceeding.

 

11.         Modification.
This Guaranty may be modified only by a contract in writing executed by Guarantor and Landlord.

 

12.         Invalidity. If any provision of the Guaranty shall be invalid or unenforceable, the remainder of this Guaranty shall
not be affected by such invalidity or unenforceability. In the event, and to the extent, that this Guaranty shall be held ineffective
or unenforceable by any court of competent jurisdiction, then Guarantor shall be deemed to be a tenant under the Lease with the
same force and effect as if Guarantor were expressly named as a co-tenant therein with joint and several liability.

 

    

     

    

 

13.         Successors
and Assigns. Unless otherwise agreed in writing or under the Lease, this Guaranty shall be binding upon and shall inure to
the benefit of the successors-in-interest and assigns of each party to this Guaranty.

 

14.         Notices.
Any notice, consent, demand, invoice, statement or other communication required or permitted to be given hereunder shall be
in writing and shall be given by (a) personal delivery, (b) overnight delivery with a reputable international overnight delivery
service, such as FedEx, or (c) facsimile or email transmission, so long as such transmission is followed within one (1) business
day by delivery utilizing one of the methods described in subsections (a) or (b). Any such notice, consent, demand, invoice, statement
or other communication shall be deemed delivered (x) upon receipt, if given in accordance with subsection (a); (y) one business
(1) day after deposit with a reputable international overnight delivery service, if given if given in accordance with subsection
(b); or (z) upon transmission, if given in accordance with subsection (c). Except as otherwise stated in this Guaranty, any notice,
consent, demand, invoice, statement or other communication required or permitted to be given pursuant to this Guaranty shall be
addressed to Guarantor or Landlord at the address set forth above in the introductory paragraph of this Guaranty. Either party
may, by notice to the other given pursuant to this Section, specify additional or different addresses for notice purposes.

 

15.         Waiver.
Any waiver of a breach or default under this Guaranty must be in a writing that is duly executed by Landlord and shall not
be a waiver of any other default concerning the same or any other provision of this Guaranty. No delay or omission in the exercise
of any right or remedy shall impair such right or remedy or be construed as a waiver.

 

16.         Withholding.
Unless otherwise agreed in the Lease, any and all payments by Guarantor to Landlord under this Guaranty shall be made free and
clear of and without deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees,
withholdings or similar charges, and all liabilities with respect thereto (collectively, "Taxes"). If Guarantor
shall be required by any applicable laws to deduct any Taxes from or in respect of any sum payable under this Guaranty to Landlord:
(a) the sum payable shall be increased as necessary so that after making all required deductions, the Landlord receives an amount
equal to the sum it would have received had no such deductions been made; (b) Guarantor shall make such deductions; and (c) Guarantor
shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable laws.

 

17.         Financial
Condition of Tenant. Landlord shall have no obligation to disclose or discuss with Guarantor Landlord's assessment of the
financial condition of Tenant. Guarantor has adequate means to obtain information from Tenant on a continuing basis concerning
the financial condition of Tenant and its ability to perform its Guaranteed Obligations, and Guarantor assumes responsibility
for being and keeping informed of Tenant's financial condition and of all circumstances bearing upon the risk of Tenant's failure
to perform the Guaranteed Obligations.

 

18.         Bankruptcy.
So long as the Guaranteed Obligations remain outstanding, Guarantor shall not, without Landlord's prior written consent, commence
or join with any other person in commencing any bankruptcy or similar proceeding of or against Tenant. Guarantor's obligations
hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated by any bankruptcy or similar
proceeding (voluntary or involuntary) involving Tenant or by any defense that Tenant may have by reason of an order, decree or
decision of any court or administrative body resulting from any such proceeding. To the fullest extent permitted by law, Guarantor
will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar person
to pay to Landlord or allow the claim of Landlord in respect of any interest, fees, costs, expenses or other Guaranteed Obligations
accruing or arising after the date on which such case or proceeding is commenced.

 

    

     

    

 

19.        
Conveyance or Transfer. Without Landlord's written consent, Guarantor shall not convey, sell, lease or transfer any
of its properties or assets to any person or entity to the extent that such conveyance, sale, lease or transfer could have a material
adverse effect on Guarantor's ability to fulfill any of the Guaranteed Obligations.

 

20.        
Financials. Guarantor acknowledges and agrees to comply with the financial reporting requirements set forth in Section
33.1 of the Lease.

 

21.        
Joint and Several Liability. Guarantor's liability under this Guaranty shall be joint and several with any and all
other Guarantors in accordance with the terms and conditions of the Lease.

 

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IN WITNESS WHEREOF,
Guarantor has caused this Guaranty to be signed by its respective officer thereunto duly authorized, all as of the date first written
above.

 

GUARANTOR

 

NEW MEDMEN INC.,

a British Columbia corporation

 

	By:	 	 
	Name:	 	 
	Title:

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