Document:

Exhibit 10.16

 

	Stock Option Plan	Page 1 of 23

 

TERRASCEND CORP.

STOCK OPTION PLAN

 

ARTICLE 1

DEFINITIONS AND INTERPRETATION

 

		1.1	Definitions

 

For the purposes of this Plan, the following terms have the following
meanings:

 

		1.1.1	“10% Shareholder” means a U.S.
Participant who, at the time the Option is granted, owns, taking into account the constructive ownership rules set forth in section
424(d) of the Code, more than 10% of the total combined voting power of all classes of stock of the Corporation (or any Parent Corporation
or Subsidiary Corporation).

 

		1.1.2	“Applicable Laws” means, at any
time, with respect to any Person, property, transaction or event, all applicable laws, statutes, regulations, treaties, judgments and
decrees and (whether or not having the force of law) all applicable official directives, rules, consents, approvals, by-laws, permits,
authorizations and orders of any Governmental Authority having authority over that Person, property, transaction or event.

 

		1.1.3	“Blackout Period” means the period
during which designated Persons cannot trade Shares pursuant to the Corporation’s policy, if any, respecting restrictions on trading
which is in effect at that time.

 

		1.1.4	“Board” means the board of directors
of the Corporation.

 

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

 

		1.1.6	“Cause” in respect of a Participant
means “just cause” “or “cause” for termination of employment by the Corporation or a Subsidiary as determined
under Applicable Laws; provided that, for a U.S. Participant who is employed in the United States, “Cause” means any of the
following: (a) Participant materially breaches any fiduciary duty owed to the Corporation or a Subsidiary, including the duty of
loyalty; (b) Participant fails to comply with any valid and legal directive of the Corporation that is material and is consistent
with Participant’s obligations under the Participant’s employment agreement, which has not been complied with within ten (10) calendar
days of written notice to Participant of such noncompliance; (c) Participant is convicted of or pleads guilty or nolo contendere
to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude or
that results in material, reputational, or financial harm to the Corporation, its agents representatives, or its affiliates; (d) Participant
engages in any act or omission that constitutes a material breach by Participant of any of Participant’s duties, responsibilities,
and obligations under the Participant’s employment agreement, or any material written policy (as they may be in effect from time
to time during Participant’s employment) of the Corporation or any Subsidiary, assuming such obligations are lawful, which has not
been cured within ten (10) calendar days of written notice to the Participant; (e) Participant commits an act which negatively
impacts the Corporation or its employees including, but not limited to, engaging in competition with the Corporation, disclosing confidential
information or engaging in sexual harassment or discrimination in violation of policies of the Corporation; or (f) Participant engages
in the unauthorized disclosure of confidential information of the Corporation. For purposes of this definition of “Cause,”
an act or failure to act shall not be deemed willful or intentional unless Participant acted (or failed to act) in bad faith or without
a reasonable belief that Participant’s action or omission was in the best interest of the Corporation. For avoidance of doubt,
Participant’s failure to meet performance goals or objectives, by itself, shall not constitute Cause.

 

    

     

    

 

	Stock Option Plan	Page 2 of 23

 

		1.1.7	“Change of Control Transaction”
means:

 

		1.1.7.1	the acquisition of a sufficient number of voting securities in the capital of the Corporation so that the acquiror, together with
Persons acting jointly or in concert with the acquiror, becomes entitled, directly or indirectly, to exercise more than 50% of the voting
rights attaching to the outstanding voting securities in the capital of the Corporation (provided that, prior to the acquisition, the
acquiror was not entitled to exercise more than 50% of the voting rights attaching to the outstanding voting securities in the capital
of the Corporation);

 

		1.1.7.2	the completion of a consolidation, merger, arrangement or amalgamation of the Corporation with or into any other entity whereby the
voting securityholders of the Corporation immediately prior to the consolidation, merger, arrangement or amalgamation receive less than
50% of the voting rights attaching to the outstanding voting securities of the consolidated, merged, arranged or amalgamated entity; or

 

		1.1.7.3	the completion of a sale whereby all or substantially all of the Corporation’s undertakings and assets become the property of
any other entity and the voting securityholders of the Corporation immediately prior to the sale hold less than 50% of the voting rights
attaching to the outstanding voting securities of that other entity immediately following that sale.

 

		1.1.8	“Consultant” means a Person, or
an individual employed by a Person, other than an Employee or a Director, that:

 

		1.1.8.1	is engaged to provide on an ongoing bona fide basis consulting, technical, management or other services to the Corporation or to a
Subsidiary, other than services provided in relation to a distribution of securities;

 

		1.1.8.2	provides the services under a written contract with the Corporation or a Subsidiary;

 

		1.1.8.3	in the reasonable opinion of the Board, spends or will spend a significant amount of time and attention on the affairs and business
of the Corporation or a Subsidiary;

 

		1.1.8.4	has a relationship with the Corporation or a Subsidiary that enables the individual to be knowledgeable about the business and affairs
of the Corporation; and

 

		1.1.8.5	in the case of a U.S. Participant, (A) is a natural person whom renders bona fide services to the Corporation or any Subsidiary,
and such services are not in connection with the offer and sale of securities in any capital-raising transaction and (B) does not
directly or indirectly promote or maintain a market for the Corporation’s or any Subsidiary’s securities.

 

		1.1.9	“Code” means the United States
Internal Revenue Code of 1986, as amended from time to time.

 

		1.1.10	“Corporation” means Terrascend
Corp.

 

		1.1.11	“California Supplement” means
the California Supplement attached hereto as Schedule 1.

 

    

     

    

 

	Stock Option Plan	Page 3 of 23

 

		1.1.12	“Director” means a director of
the Corporation or any Subsidiary.

 

		1.1.13	“Disability” means a physical
or mental incapacity or disability that prevents the Eligible Person from performing the essential duties of the Eligible Person’s
employment or service with the Corporation or any Subsidiary, and which cannot be accommodated under applicable human rights laws without
imposing undue hardship on the Corporation or the Subsidiary employing or engaging; the Eligible Person, as determined by the Board for
the purposes of this Plan.

 

		1.1.14	“Early Expiry Date” is defined
in Section 4.10.1.2.

 

		1.1.15	“Eligible Person” means any Employee,
Director or Consultant.

 

		1.1.16	“Employee” means:

 

		1.1.16.1	an individual who is considered an employee of the Corporation or any Subsidiary under the Income Tax Act (Canada);

 

		1.1.16.2	an individual who works full-time for the Corporation or any Subsidiary providing services normally provided by an employee and who
is subject to the same control and direction by the Corporation or the relevant Subsidiary over the details and methods of work as an
employee of the Corporation or the relevant Subsidiary; or

 

		1.1.16.3	an individual who works for the Corporation or any Subsidiary on a continuing and regular basis for at least 20 hours per week providing
services normally provided by an employee and who is subject to the same control and direction by the Corporation or the relevant Subsidiary
over the details and methods of work as an employee of the Corporation or the relevant Subsidiary.

 

		1.1.17	“Exchange” means the Canadian
Securities Exchange.

 

		1.1.18	“Governmental Authority” means:

 

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

 

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

 

		1.1.19	“Grant Date” means, for any Option,
the date on which that Option is granted, provided that, with respect to Nonqualified Stock Options, “Grant Date” means
the date specified in U.S. Treasury Regulation Section 1.409A-1(b)(5)(vi)(B), and with respect to Incentive Stock Options, “Grant
Date” means the date specified in U.S. Treasury Regulation Section 1.421- 1(c).

 

		1.1.20	“Insider” means “Insider”
as defined in the policies of the Exchange, or any other stock exchange upon which the Shares are listed for trading.

 

		1.1.21	“Incentive Stock Option” means
an incentive stock option as defined in section 422 of the Code.

 

    

     

    

 

	Stock Option Plan	Page 4 of 23

 

		1.1.22	“Investor Relations Activities”
means “Investor Relations Activities” as defined in the policies of the Exchange, or any other stock exchange upon which the
Shares are listed for trading.

 

		1.1.23	“Investor Relations Participant”
means a Consultant that performs Investor Relations Activities or an Employee or Director whose roles and duties primarily consist of
Investor Relations Activities.

 

		1.1.24	“Nonqualified Stock Option” means
an Option granted to a U.S. Participant that is not an Incentive Stock Option.

 

		1.1.25	“Option” means an option to purchase
Shares granted to an Eligible Person under the terms of this Plan.

 

		1.1.26	“Option Agreement” means the option
agreement evidencing an Option issued pursuant to this Plan.

 

		1.1.27	“Option Exercise Price” is defined
in Section 4.3.

 

		1.1.28	“Option Expiry Date” is defined
in Section 4.4.

 

		1.1.29	“Parent Corporation” means any
parent, as defined in Section 424(e) of the Code, of the Corporation.

 

		1.1.30	“Participant” means an Eligible
Person to whom an Option has been granted.

 

		1.1.31	“Person” will be broadly
interpreted and includes:

 

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

 

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

 

		1.1.31.3	a Governmental Authority.

 

		1.1.32	“Plan” means this stock option
plan of the Corporation.

 

		1.1.33	“Remittance Amount” is defined
in Section 4.9.1.1.

 

		1.1.34	“Restricted Person” is defined
in Section 2.3.6.2.

 

		1.1.35	“Retirement” means retirement
from active employment or service with the Corporation or a Subsidiary:

 

		1.1.35.1	at or after age 65; or

 

		1.1.35.2	with the consent of any officer of the Corporation as may be designated for the purposes of this Plan by the Board, at or after any
earlier age and on the completion of any number of years of service as the Board may specify.

 

    

     

    

 

	Stock Option Plan	Page 5 of 23

 

		1.1.36	“Rule 701” means Rule 701
promulgated under the Securities Act.

 

		1.1.37	“SEC” means the U.S. Securities
and Exchange Commission.

 

		1.1.38	“Section 25102(o)” means
Section 25102(o) of the California Corporations Code, as may be amended from time to time.

 

		1.1.39	“Securities Act” means the U.S.
Securities Act of 1933, as may be amended from time to time.

 

		1.1.40	Share Compensation Arrangement” means any stock option plan of the Corporation (other than this Plan) and any stock option
granted by the Corporation outside of this Plan.

 

		1.1.41	“Shares” means common shares in
the capital of the Corporation.

 

		1.1.42	“Subsidiary” means a body corporate
that is controlled by the Corporation and, for the purposes of this definition, a body corporate will be deemed to be controlled by the
Corporation if the Corporation, directly or indirectly, has the power to direct the management and policies of the body corporate by virtue
of ownership of, or direction over, voting securities in the body corporate.

 

		1.1.43	“Subsidiary Corporation” means
any subsidiary, as defined in Section 424(f) of the Code, of the Corporation.

 

		1.1.44	“Termination Date” means the date
on which a Participant ceases to be an Eligible Person and, in the case of an Employee, means the date on which the Employee ceases to
actively perform services for the Corporation or any Subsidiary (excluding any notice period which may extend beyond the date on which
active services cease).

 

		1.1.45	“U.S. Participant” means a Participant
who is employed primarily in the United States, and is a United States resident or United States citizen for United States federal income
tax purposes or is otherwise subject to the applicable provisions of the Code.

 

		1.2	Certain Rules of Interpretation

 

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

 

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

 

		1.2.3	References in this Plan to an Article or Section are to be construed as references to an Article or Section of
or to this Plan unless otherwise specified.

 

		1.2.4	Unless otherwise specified in this Plan, time periods within which or following which any calculation or payment is to be made, or
action is to be taken, will be calculated by excluding the day on which the period begins and including the day on which the period ends.
If the last day of a time period is not a Business Day, the time period will end on the next Business Day. Unless otherwise determined
by the Board, if an Option would, under the terms of this Plan or the Option Agreement, otherwise expire or terminate on a day which is
not a Business Day, the Option will expire or terminate on the next Business Day. Notwithstanding the forgoing, with respect to an Incentive
Stock Option, this Section 1.2.4 will not extend any termination or expiry date determined under Section 4.4, 4.10, or 4.14.

 

    

     

    

 

	Stock Option Plan	Page 6 of 23

 

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

 

		1.3	Governing Law

 

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

 

ARTICLE 2

ESTABLISHMENT OF PLAN

 

		2.1	Purpose

 

		2.1.1	The Corporation establishes this Plan to govern the grant, administration and exercise of Options which may be granted to bona fide
Eligible Persons.

 

		2.1.2	The principal purposes of this Plan are to provide the Corporation with the advantages of the incentive inherent in equity ownership
on the part of Eligible Persons who are responsible for the continued success of the Corporation; to create in those Eligible Persons
a proprietary interest in, and a greater concern for, the welfare and success of the Corporation; to encourage Eligible Persons to remain
with the Corporation and any Subsidiaries; and to attract new Employees, Directors and Consultants.

 

		2.1.3	This Plan is expected to benefit shareholders by enabling the Corporation to attract and retain personnel of the highest calibre by
offering them an opportunity to share in any increase in value of the Shares resulting from their efforts.

 

		2.2	Shares Reserved and Plan Limits

 

		2.2.1	The number of Shares that may be reserved for issuance under this Plan and under any other Share Compensation Arrangement will not
exceed, in the aggregate, 10% of the outstanding Shares (on a fully diluted basis) on each Grant Date, provided that the maximum number
of Shares reserved under this Plan for issuance upon the exercise of Incentive Stock Options is 10,000,000.

 

		2.2.2	The Corporation will at all times during the term of this Plan reserve and keep available the number of Shares necessary to satisfy
the requirements of this Plan.

 

		2.3	Limits on Certain Grants

 

		2.3.1	An Option may only be granted to a Consultant under this Plan if the number of Shares reserved for issuance under that Option, when
combined with the number of Shares reserved for issuance under all options granted within the one-year period before the Grant Date by
the Corporation to Consultants, does not exceed, in aggregate, 2% of the outstanding Shares on the Grant Date (with the outstanding Shares
being calculated on a non-diluted basis, and excluding Shares issued to Consultants within the previous one-year period pursuant to the
exercise of options).

 

    

     

    

 

	Stock Option Plan	Page 7 of 23

 

		2.3.2	An Option may only be granted to an Investor Relations Participant under this Plan if the number of Shares reserved for issuance under
that Option, when combined with the number of Shares reserved for issuance under all options granted within the one-year period before
the Grant Date by the Corporation to Investor Relations Participants, does not exceed, in aggregate, 2% of the outstanding Shares on the
Grant Date (with the outstanding Shares being calculated on a non-diluted basis, and excluding Shares
issued to Investor Relations Participants within the previous one-year period pursuant to the exercise of options). Further, Options issued
to an Investor Relations Participant under this plan shall vest in stages over a period of not less than 12 months with not more than
1/4 of the Options vesting in any three (3) month period.

 

		2.3.3	An Option may only be granted to a Person under this Plan if the number of Shares reserved for issuance under that Option, when combined
with the number of Shares reserved for issuance under all options granted within the one-year period before the Grant Date by the Corporation
to that Person, does not exceed, in aggregate, 5% of the outstanding Shares on the Grant Date (with the outstanding Shares being calculated
on a non-diluted basis, and excluding Shares issued to that Person within the previous one-year period pursuant to the exercise of options),
unless any disinterested shareholder approval required by the Exchange has been obtained.

 

		2.3.4	Unless disinterested shareholder approval is obtained, the number of Shares that may be reserved for issuance to Insiders under this
Plan and under any other Share Compensation Arrangement will not exceed, in the aggregate, 10% of the outstanding Shares (on a non-diluted
basis) at any point in time.

 

		2.3.5	Unless disinterested shareholder approval is obtained, an Option may only be granted to an Insider under this Plan if the number of
Shares reserved for issuance under that Option, when combined with the number of Shares reserved for issuance under all options granted
within the one-year period before the Grant Date by the Corporation to Insiders, does not exceed, in aggregate, 10% of the outstanding
Shares on the Grant Date (with the outstanding Shares being calculated on a non-diluted basis, and excluding Shares issued to Insiders
within the previous one-year period pursuant to the exercise of options).

 

		2.3.6	For the purposes of calculating the limits in this Section 2.3:

 

		2.3.6.1	the number of Shares reserved for issuance under an option means the number of Shares which were originally reserved for issuance
upon the date of grant of the option (except for the purposes of calculating the limit in Section 2.3.4, in which case the number
of Shares reserved for issuance means the number of Shares reserved for issuance at the time of the calculation); and

 

		2.3.6.2	any options granted within the relevant time but prior to the grantee becoming a Consultant, Investor Relations Participant or
Insider, as applicable (a “Restricted Person”), and any Shares reserved or issued under those grants, will be included
in the number of options granted to those Restricted Persons, in the number of Shares reserved for issuance to those Restricted Persons,
and in the number of Shares issued to those Restricted Persons, if the grantee becomes a Restricted Person on or before the date the calculation
is made.

 

		2.4	Exercised Options

 

Any number of Shares which have been issued on the exercise of an Option
will again be available for grants under this Plan, and will be considered to be part of the pool of Shares available for Options under
this Plan.

 

		2.5	Expired or Terminated Options

 

If and to the extent any Option granted under this Plan expires or
is terminated without having been exercised in whole or in part, the number of Shares then subject to that Option will be considered to
be part of the pool of Shares available for Options under this Plan.

 

    

     

    

 

	Stock Option Plan	Page 8 of 23

 

		2.6	Non-Exclusivity

 

Nothing contained in this Plan will prevent the Board from adopting
other or additional incentive compensation arrangements, whether Share Compensation Arrangements or otherwise.

 

		2.7	Effective Date

 

This Plan will be effective as of March 8, 2017, but will be subject
to acceptance of this Plan by the Exchange. Any Options granted under this Plan prior to the acceptance will be conditional upon any required
approval and acceptance being given and no Options may be exercised until that approval and acceptance has been given.

 

ARTICLE 3

ADMINISTRATION OF PLAN

 

		3.1	Administration of the Plan

 

		3.1.1	Subject to the provisions of this Plan, Applicable Laws, and the applicable rules and policies of the Exchange (or any other
stock exchange or market on which the Shares are listed), the Board will have full power and authority to:

 

		3.1.1.1	administer this Plan in accordance with its express terms;

 

		3.1.1.2	determine all questions arising in connection with the administration, interpretation, and application of this Plan;

 

		3.1.1.3	prescribe, amend, and rescind rules and regulations relating to the administration of this Plan; and

 

		3.1.1.4	make all other determinations necessary or advisable for the administration of this Plan.

 

All determinations made in good faith on the matters referred
to in this Section 3.1.1 will be final, conclusive, and binding on the Corporation and the relevant Participant.

 

		3.1.2	Subject to Applicable Laws, and the applicable rules and policies of the Exchange (or any other stock exchange or market on which
the Shares are listed), the Board may, by resolution, at any time:

 

		3.1.2.1	delegate any of its powers, rights and obligations under Section 3.1.1 to any committee of the Board; and

 

		3.1.2.2	amend or rescind the delegation of any of its rights, powers and obligations effected under Section 3.1.2.1.

 

		3.2	Record Keeping

 

The Corporation will maintain a register in which will be recorded:

 

		3.2.1	with respect to each Option granted to a Participant:

 

		3.2.1.1	the name and address of the Participant;

 

		3.2.1.2	the Grant Date;

 

		3.2.1.3	the number of Shares issuable under the Option as of the Grant Date;

 

    

     

    

 

	Stock Option Plan	Page 9 of 23

 

		3.2.1.4	the Option Exercise Price;

 

		3.2.1.5	any vesting conditions;

 

		3.2.1.6	the number of Shares issued under the Option (and the dates of issuance); and

 

		3.2.1.7	the Option Expiry Date; and

 

		3.2.2	the aggregate number of Shares subject to Options.

 

		3.3	Adjustments to Options

 

		3.3.1	If any material change in the outstanding Shares occurs by reason of any stock dividend, split, recapitalization, amalgamation, merger,
consolidation, combination or exchange of shares or other similar corporate change, the Board may make any proportionate adjustments to
this Plan and any outstanding Options that the Board deems equitable and appropriate to reflect that change. Any adjustment under this
Section 3.3.1 will be made in the sole discretion of the Board, and will be conclusive and binding for all purposes of this Plan.

 

		3.3.2	No fractional Shares will be issued on the exercise of an Option. If, as a result of any adjustment as provided in this Section 3.3,
a Participant would be entitled to a fractional Share, the Participant will have the right to purchase only the number of full Shares
that is calculated under that adjustment, and no payment or other adjustment will be made with respect to that fractional Share.

 

		3.4	Termination of the Plan

 

The Board may terminate this Plan at any time in its absolute discretion
(without shareholder approval). If this Plan is terminated, no further Options will be granted but the Options then outstanding will continue
in full force and effect in accordance with the provisions of this Plan, until the time they are exercised or terminated or expire under
the terms of this Plan and the applicable Option Agreements.

 

		3.5	General

 

The existence of any Option will not affect, in any way, the right
or power of the Corporation to:

 

		3.5.1	make or authorize any recapitalization, reorganization or other change in the Corporation’s capital structure or business;

 

		3.5.2	participate in any amalgamation, combination, merger or consolidation;

 

		3.5.3	create or issue any securities or change the rights and conditions attaching to any of its securities;

 

		3.5.4	effect the dissolution or liquidation of the Corporation or any sale or transfer of all or any part of its assets or business; or

 

		3.5.5	effect any other corporate act or proceeding, whether of similar character or otherwise.

 

		3.6	Compliance with Applicable Laws

 

		3.6.1	This Plan, the grant and exercise of Options, the Corporation’s obligation to issue Shares on the exercise of Options, and all
other actions taken under this Plan will be subject to Applicable Laws, to the applicable rules and policies of the Exchange (or
any other stock exchange or market on which the Shares are listed) and to any approvals by any Governmental Authority which, in the opinion of counsel
to the Corporation, are necessary or advisable.

 

    

     

    

 

	Stock Option Plan	Page 10 of 23

 

		3.6.2	No Option will be granted and no Shares issued under this Plan if that grant or issue would require registration of this Plan or of
Shares under the securities laws of any foreign jurisdiction. Any purported grant of any Option or issue of Shares under this Plan in
violation of this Section 3.6.2 will be void.

 

		3.6.3	Shares issued to Participants pursuant to the exercise of Options may be subject to limitations on sale or resale under Applicable
Laws.

 

ARTICLE 4

TERMS OF OPTIONS

 

		4.1	Grants

 

		4.1.1	Subject to the provisions of this Plan, the Board will have the authority to grant Options to Eligible Persons, and to determine the
terms and conditions applicable to the exercise of those Options, including, for each Option:

 

		4.1.1.1	the number of Shares issuable under the Option;

 

		4.1.1.2	the Option Exercise Price;

 

		4.1.1.3	the Option Expiry Date;

 

		4.1.1.4	the vesting conditions, if any;

 

		4.1.1.5	the nature and duration of the restrictions, if any, to be imposed on the sale or other disposition of Shares acquired on the exercise
of the Option; and

 

		4.1.1.6	the events, if any, that could give rise to a termination of the Participant’s rights under the Option, and the period in which
such a termination can occur.

 

		4.1.2	Each Option must be confirmed by an Option Agreement executed by the Corporation and by the Participant to whom that Option is granted.
Subject to specific variations approved by the Board in respect of any Option, those variations not to be inconsistent with the provisions
of this Plan, all terms and conditions set out in this Plan will be incorporated by reference into and form part of each Option Agreement.

 

		4.1.3	If an Option is to be granted to an Employee or a Consultant, the Corporation and the Person to whom that Option is proposed to be
granted are responsible for ensuring and confirming that the Person is a bona fide Employee or Consultant.

 

		4.2	Multiple Grants

 

An Eligible Person may be granted Options on more than one occasion
under this Plan and be granted separate Options on any one occasion.

 

    

     

    

 

	Stock Option Plan	Page 11 of 23

 

		4.3	Option Exercise Price

 

The Board will set the option exercise price (the “Option
Exercise Price”) in respect of each Share issuable under an Option granted to a Participant. The Option Exercise Price will
not be less than the fair market value of a Share on the Grant Date and, if the Shares are listed on the Exchange, will be subject to
the minimum Option Exercise Price permitted by the Exchange. For the purposes of this Section 4.3, “fair market value”
means:

 

		4.3.1	if the Shares are listed on the Exchange, the last closing price of the Shares on the Exchange before the grant of the Option;

 

		4.3.2	if the Shares are not then listed on the Exchange, but are listed on another stock exchange or market, the last closing price of the
Shares on the stock exchange or market before the grant of the Option; or

 

		4.3.3	if Sections 4.3.1 and 4.3.2 do not apply, the fair market value of a Share determined by the Board, taking into account any considerations
which it determines to be appropriate at the relevant time.

 

		4.4	Option Expiry Date

 

The Board will, on the Grant Date, set the option expiry date (the
 “Option Expiry Date”) of each Option granted to a Participant. The Option Expiry Date set under this Section 4.4
will be no later than ten (10) years after the Grant Date, and will be subject to earlier expiry in accordance with Section 4.10
and Section 4.11, and later expiry in accordance with Section 4.7.

 

		4.5	Vesting of Options

 

		4.5.1	Subject to Section 4.5.3, and unless accelerated by the Board under Section 4.5.2 or Section 4.11 or otherwise specified
in the relevant Option Agreement, an Option will vest and become exercisable as to 1/4 of the Shares issuable under the Option on each
of the following dates:

 

		4.5.1.1	the first anniversary of the Grant Date;

 

		4.5.1.2	the second anniversary of the Grant Date;

 

		4.5.1.3	the third anniversary of the Grant Date; and

 

		4.5.1.4	the fourth anniversary of the Grant Date.

 

		4.5.2	Subject to Section 4.5.3, the Board may, at any time, accelerate the date on which any Option will vest and become exercisable.

 

		4.5.3	An Option granted to an Investor Relations Participant will vest over a period of not less than 12 months from the Grant Date, and
as to no more than 1/4 of the Shares issuable under the Option in any three-month period.

 

		4.6	Exercise of Options

 

		4.6.1	An Option will be exercisable until 5:00 p.m. (Toronto time) on the Option Expiry Date, but only to the extent that it has vested
and has not expired or been terminated.

 

		4.6.2	Subject to the provisions of this Plan and the related Option Agreement, an Option may be exercised, in whole or in part, at any time
by delivery to the Corporation of a written notice of exercise, substantially in the form to be included with the Option Agreement or
in such matter as may be permitted by the Corporation, specifying the number of Shares with respect to which the Option is being exercised
and accompanied by payment in full of the Option Exercise Price of the Shares to be purchased. Payment of the Option Exercise Price must
be made in cash, by check, by transferring Shares to the Company having a fair market value (as defined in Section 4.3 herein) on
the date of exercise equal to the cash amount for which such Shares are substituted, or in such other manner as may be permitted by the
Corporation in its discretion.

 

    

     

    

 

	Stock Option Plan	Page 12 of 23

 

		4.7	Blackout Periods

 

No Option may be exercised during a Blackout Period, if the Participant
is then restricted from trading in Shares pursuant to any policy of the Corporation or Applicable Laws. If an Option Expiry Date set under
Section 4.4 falls on a date within a Blackout Period or within ten (10) Business Days following the expiration of a Blackout
Period, the expiry date for that Option will be automatically extended, without any further act or formality, to that date which is the
tenth Business Day after the end of the Blackout Period. This Section 4.7 will not extend any termination or expiry date determined
under Section 4.4., 4.10, 4.11, or 4.14.

 

		4.8	Amendments to Plan or Options

 

The Board may amend this Plan or any Option, other than to re-price
an Option which shall not be permitted under this Plan, at any time, subject to the requirements of the Exchange (or any other stock exchange
or market on which the Shares are listed), including any shareholder approval requirements, provided that if an amendment materially impairs
an Option or is materially adverse to its holder, the amendment will not take effect in respect of that Option until the consent of the
Participant holding the Option has been obtained.

 

		4.9	Withholding of Tax

 

		4.9.1	The Corporation and any Subsidiary may take reasonable steps for the withholding of any taxes or other source deductions that it is
required by Applicable Laws or the requirements of any Governmental Authority to remit in connection with this Plan, any Option or any
issuance of Shares upon the exercise of an Option, including:

 

		4.9.1.1	deducting and withholding the amount required to be remitted (the “Remittance Amount”) from any cash remuneration
or any other amount payable to a Participant, whether or not related to the Plan, the exercise of any Options or the issue of any Shares;

 

		4.9.1.2	permitting the Participant to make a cash payment to the Corporation equal to the Remittance Amount; or

 

		4.9.1.3	selling, or causing a broker engaged by the Corporation to sell, on behalf of any Participant, that number of Shares issued to the
Participant pursuant to an exercise of Options, such that the amount received by the Corporation or Subsidiary from the proceeds of the
sale will be sufficient to satisfy the obligation to remit the Remittance Amount (and to fund any commissions payable to the broker and
other costs and expenses of the transaction).

 

		4.9.2	Any Shares of a Participant that are sold by the Corporation, or by a broker engaged by the Corporation, to fund a Remittance Amount
will be sold as soon as practicable, and, if applicable, in transactions effected on the exchange on which the Shares are then listed
for trading. In effecting the sale of any Shares, the Corporation or the broker will exercise its sole judgment as to the timing and manner
of sale and will not be obligated to seek or obtain a minimum price. Neither the Corporation nor the broker will be liable for any loss
arising out of any sale of Shares, including any loss relating to the manner or timing of any sale, the prices at which the Shares are
sold, or otherwise. In addition, neither the Corporation nor the broker will be liable for any loss arising from a delay in transferring
any Shares to a Participant. The sale price of Shares sold on behalf of Participants will fluctuate with the market price of the Shares
and no assurance can be given that any particular price will be received upon any sale.

 

    

     

    

 

	Stock Option Plan	Page 13 of 23

 

		4.10	Termination of Employment or Service

 

		4.10.1	Unless otherwise determined by the Board under Section 4.11 or otherwise specified in the relevant Option Agreement, if a Participant ceases to be
an Eligible Person:

 

		4.10.1.1	any unvested portion of any Option held by that Participant will immediately expire as of the Termination Date; and

 

		4.10.1.2	any vested portion of any Option held by that Participant will expire on the earlier of the Option Expiry Date set by the Board under
Section 4.4 (without including any extended expiry terms determined under Section 4.7) and:

 

		4.10.1.2.1	in the case of termination of employment by the Corporation or a Subsidiary without Cause, or the failure of a Director standing for
election to be re-elected, or the failure by the Corporation or a Subsidiary to renew a contract for services at the end of its term,
the date which is 90 days (or, in the case of an Incentive Stock Option, three (3) months) after the Termination Date;

 

		4.10.1.2.2	in the case of voluntary resignation of employment from the Corporation or a Subsidiary, the date which is 90 days (or, in the case
of an Incentive Stock Option, three (3) months) after the Termination Date;

 

		4.10.1.2.3	in the case of the death of the Participant, the date which is one year after the death;

 

		4.10.1.2.4	in the case of the Disability or Retirement of the Participant, the date which is 180 days (or, in the case of an Incentive Stock
Option, except as set forth in Section 4.14.6, three (3) months) after the Termination Date; and

 

		4.10.1.2.5	in all other cases, the Termination Date, (the date determined under Sections 4.10.1.2.1 to 4.10.1.2.4, the “Early Expiry
Date”).

 

		4.10.2	Unless otherwise determined by the Board, Options will not be affected by any change of employment or provision of services within
or among the Corporation or any Subsidiaries, so long as the Participant continues to be an Eligible Person.

 

		4.10.3	The Early Expiry Date will be determined based on the first of the events described in Sections 4.10.1.2.1 to 4.10.1.2.5 to occur.

 

		4.10.4	Options granted under this Plan are not part of a Participant’s regular employment or consulting compensation, and no value
will be attributed to any Options as part of calculating any Participant’s damages for wrongful dismissal, or any amount due to
a Participant with respect to reasonable notice, notice of termination, severance or termination pay, or compensation in lieu of notice.

 

		4.10.5	Notwithstanding Section 4.10.1.1 and subject to the terms of a Participant’s written employment or consulting agreement
with the Corporation or a Subsidiary, in the event a Participant’s employment is terminated by the Corporation, or a Subsidiary,
as applicable, without Cause, the Participant dies or experiences a Disability prior to the anniversary of a vesting period:

 

		4.10.5.1	the number of Options determined by the formula A x B/C, where

 

A:
equals the total number of Options relating to such vesting period that have not previously vested in respect of such vesting period,

 

    

     

    

 

	Stock Option Plan	Page 14 of 23

 

B:
equals the total number of days between the first day of such vesting period relating to such Grant and the Participant’s
Termination Date, and

C:
equals total number of days in the vesting period relating to such vesting period, shall become vested Options on the Participant’s
Termination Date.

 

		4.11	Change of Control

 

		4.11.1	Despite any other provision of this Plan or any Option Agreement, in the event of an actual or potential Change of Control Transaction,
the Board has the right, in its sole discretion and on the terms it sees fit, without any action or consent required on the part of any
Participant, to deal with any Options (or any portion of any Options) in the manner it deems equitable and appropriate in the circumstances,
including the right to:

 

		4.11.1.1	determine that any Options (or any portion of any Options) will remain in full force and effect in accordance with their terms after
the Change of Control Transaction;

 

		4.11.1.2	cause any Options (or any portion of any Options) to be converted or exchanged for options to acquire shares of another entity involved
in the Change of Control Transaction, having substantially the same terms and conditions as the Options, except as the board may determine;

 

		4.11.1.3	accelerate the vesting of any unvested Options;

 

		4.11.1.4	provide Participants with the right to surrender any Options (or any portion of any Options) for an amount per underlying Share equal
to the positive difference, if any, between the fair market value of the Share on the date of surrender and the Option Exercise Price;
and

 

		4.11.1.5	accelerate the date by which any Options (or any portion of any Options) must be exercised.

 

		4.11.2	The Corporation will use its best efforts to give the affected Participants written notice of any determination made by the Board
under Section 4.11.1 at least 14 days before the effective date of the Change of Control Transaction.

 

		4.12	Transferability

 

		4.12.1	Subject to Section 4.12.2, the Options and all benefits and rights accruing to a Participant in accordance with the terms and
conditions of this Plan are not directly or indirectly transferable and cannot be assigned, charged, pledged or hypothecated, or otherwise
alienated, by a Participant, whether voluntarily, involuntarily, by operation of law or otherwise.

 

		4.12.2	On a Participant’s death, vested Options, benefits and rights may pass by the Participant’s will or the laws of descent
and distribution to the legal representative of the Participant’s estate or any other Person who acquires the Participant’s
vested Options by bequest or inheritance. No transfer of a vested Option by will or by the laws of descent and distribution will be effective
to bind the Corporation until the Corporation has been furnished with any evidence that the Corporation may deem necessary to establish
the validity of the transfer and the acceptance by the transferee of the terms and conditions of this Plan and the relevant Option Agreement.

 

		4.13	Options for U.S. Participants

 

		4.13.1	In addition to the other provisions of this Plan (and notwithstanding any other provision of this Plan to the contrary), the limitations
and requirements of this Section 4.13, as well as those contained in Section 4.15, will apply to Options
granted to a Participant who is a U.S. Participant on the Grant Date.

 

    

     

    

 

	Stock Option Plan	Page 15 of 23

 

		4.13.2	The Option Agreement relating to any Option granted to a U.S. Participant shall specify whether such Option is an Incentive Stock
Option or a Nonqualified Stock Option. If no such specification is made, then the Option will be (a) an Incentive Stock Option if
all of the requirements under the Code are satisfied with respect to such grant, or (b) in all other cases, a Nonqualified Stock
Option.

 

		4.13.3	The Option Exercise Price will not be less than 100% of the fair market value of a Share on the Grant Date of the applicable Option.
If the Shares are not readily tradeable on an established securities market on the Grant Date, then fair market value will be determined
by the Board by the reasonable application of a reasonable valuation method, as contemplated under Section 409A of the Code, taking
into consideration factors relevant to such valuation in accordance with regulations under Section 409A of the Code and other applicable
guidance.

 

		4.13.4	Any adjustment to an outstanding Option granted to a U.S. Participant (including, but not limited to, any adjustment contemplated
under Sections 3.3.1 and 4.11.1.2 with respect to the Option Exercise Price and number of Shares subject to an Option, or with respect
to the Option Expiry Date) will be made so as to comply with, and not create any adverse consequences under, Section 409A of the
Code.

 

		4.13.5	An Option granted to a U.S. Participant may not be granted with any right to payments equivalent in amount to dividends paid to the
Corporation’s shareholders with respect to the Shares.

 

		4.13.6	A U.S. Participant may only be granted an Option to the extent that the Shares underlying the Option qualify as “service recipient
stock” (as defined under Section 409A of the Code) with respect to such U.S. Participant.

 

		4.13.7	Notwithstanding any other provisions of this Plan or any Option Agreement to the contrary, each Option granted to a U.S. Participant
shall be designed, granted, and administered in such a manner that the Option will be exempt from the application of the requirements
of Section 409A of the Code. The exercisability of an Option granted to a U.S. Participant shall not be extended to the extent that
such extension would subject the U.S. Participant to additional taxes under Section 409A of the Code.

 

		4.14	Additional Rules for Incentive Stock Options to U.S. Participants

 

		4.14.1	In addition to the other provisions of this Plan (and notwithstanding any other provision of this Plan to the contrary), the limitations
and requirements of this Section 4.14 will apply to an Incentive Stock Option.

 

		4.14.2	An Incentive Stock Option may be granted only to an employee (including a director or officer who is also an employee) of the Corporation
or any Subsidiary. For purposes of Section 4.14, the term “employee” shall mean a person who is an employee for purposes
of Section 422 of the Code.

 

		4.14.3	To the extent that the aggregate fair market value of the Shares with respect to which Incentive Stock Options are exercisable for
the first time by any U.S. Participant during any calendar year (under this Plan and all other plans of the Corporation and of any Parent
Corporation or Subsidiary Corporation) exceeds US$100,000 or any limitation subsequently set forth in Section 422(d) of the
Code, such excess shall be considered to be Nonqualified Stock Options. For this purpose, the “fair market value” of the Shares
subject to Options shall be determined as of the Grant Date of the Options. In reducing the number of Options treated as Incentive Stock
Options to meet the US$100,000 limit, the most recently granted Options shall be reduced first. To the extent that a reduction of
simultaneously granted Options is necessary to meet the US$100,000 limit, the Board may, in the manner and to the extent permitted by
law, designate which Shares are to be treated as shares acquired pursuant to the exercise of an Incentive Stock Option.

 

    

     

    

 

	Stock Option Plan	Page 16 of 23

 

		4.14.4	The Option Exercise Price upon exercise of an Incentive Stock Option will not be less than 100% of the fair market value of a Share
on the Grant Date of such Incentive Stock Option, provided that, in the case of the grant of an Incentive Stock Option to a U.S. Participant
who, at the time such Incentive Stock Option is granted, is a 10% Shareholder, the Option Exercise Price upon exercise of such Incentive
Stock Option will be not less than 110% of the fair market value of a Share on the Grant Date of such Incentive Stock Option.

 

		4.14.5	Notwithstanding Section 4.4 of this Plan, in the case of an Incentive Stock Option granted to a U.S. Participant who, at the
time such Incentive Stock Option is granted, is a 10% Shareholder, such Incentive Stock Option will terminate and no longer be exercisable
no later than five (5) years after the Grant Date of such Incentive Stock Option.

 

		4.14.6	Notwithstanding the provisions of Section 4.10.1 of this Plan, if a U.S. Participant’s employment with the Corporation
or any Subsidiary terminates by reason of a permanent and total disability (as defined below), any Incentive Stock Option held by such
Participant may thereafter be exercised, to the extent then exercisable, for a period of no more than one hundred eighty (180) days after
the Termination Date or until the Option Expiry Date, whichever period is the shorter. For purposes of this paragraph, the term “permanent
and total disability” has the meaning assigned to that term in Section 22(e)(3) of the Code.

 

		4.14.7	An Incentive Stock Option granted to a U.S. Participant may be exercised during such U.S. Participant’s lifetime only by such
U.S. Participant.

 

		4.14.8	An Incentive Stock Option granted to a U.S. Participant may not be transferred, assigned or pledged by such U.S. Participant, except
by will or by the laws of descent and distribution.

 

		4.14.9	No Incentive Stock Option may be granted under this Plan on or after the date that is ten (10) years from the earlier of the
date that this Plan, as amended, is adopted by the Board or the date that this Plan, as amended, is approved by the shareholders of the
Corporation.

 

		4.14.10	If any U.S. Participant shall make any disposition of Shares issued to such U.S. Participant pursuant to the exercise of an Incentive
Stock Option under the circumstances described in Section 421(b) of the Code (relating to certain disqualifying dispositions),
such U.S. Participant shall notify the Corporation of such disposition within ten (10) days thereof.

 

		4.15	Additional Securities Law Requirements for U.S. Participants

 

		4.15.1	This Plan is intended to be a written compensatory benefit plan within the meaning of Rule 701 or, to the extent applicable,
Section 25102(o); however, grants may be made to U.S. Participants pursuant to this Plan which do not specifically qualify for exemption
from registration under Rule 701 or, to the extent applicable, Section 25102(o). Any requirement of this Plan which is required
in law only because of Section 25102(o) will not apply with respect to a particular Option grant to which Section 25102(o) will
not apply in light of the particular U.S. Participant.

 

		4.15.2	Any provision of this Plan that is inconsistent with Rule 701 (or, to the extent applicable, Section 25102(o)) shall, without
further act or amendment by the Corporation, be reformed to comply with the requirements of Rule 701 (and, to the extent applicable,
Section 25102(o)). Any Option granted to any U.S. Participant hereunder will not be effective unless such grant is made in compliance
in all respects with Applicable Laws, including all applicable federal, state and foreign securities laws, rules and regulations
of any Governmental Authority, as well as the requirements of any U.S. or foreign stock exchange or automated quotation system upon which the Corporation’s securities
may then be listed or quoted, as they are in effect on the date of the Option grant and also on the date of exercise or other issuance.
The Corporation shall be under no obligation to register or qualify the Shares underlying the Option with the SEC, any state or foreign
securities commission or any stock exchange to effect such compliance, and the Corporation will have no liability for any inability or
failure so do.

 

    

     

    

 

	Stock Option Plan	Page 17 of 23

 

		4.15.3	Notwithstanding any other provision in this Plan to the contrary, the Corporation shall have no obligation to issue or deliver any
securities under this Plan to any U.S. Participant prior to (i) obtaining any approvals from any governmental agency that the Corporation
determines in its discretion are necessary or advisable, and/or (ii) compliance with any exemption, completion of any registration
or other qualification of such securities under any federal, state or foreign law or ruling of any Governmental Authority that the Corporation
determines in its discretion to be necessary or advisable.

 

		4.15.4	For the avoidance of doubt, a Consultant shall only be eligible to receive an Option grant in reliance on Rule 701 to the extent
that such Consultant is a natural person as described under Section 1.1.7.5.

 

ARTICLE 5

MISCELLANEOUS PROVISIONS

 

		5.1	No Rights as Shareholder

 

The holder of an Option will not have any rights as a shareholder of
the Corporation with respect to any of the Shares issuable on exercise of that Option until that holder has exercised that Option in accordance
with the terms of this Plan and has been issued the Shares.

 

		5.2	No Employment Rights

 

Nothing in this Plan or any Option will confer on a Participant any
right to continue in the employment or service of the Corporation or any Subsidiary or affect in any way the right of the Corporation
or any Subsidiary to terminate the Participant’s employment or service at any time; nor will anything in this Plan or any Option
be deemed or construed to constitute an agreement, or an expression of intent, on the part of the Corporation or any Subsidiary to extend
the employment or service of any Participant beyond the date on which the Participant’s relationship with the Corporation or any
Subsidiary would otherwise be terminated due to Retirement or pursuant to the provisions of any employment, consulting or other contract
for services with the Corporation or any Subsidiary.

 

		5.3	No Undertaking or Representation

 

The Participants, by participating in this Plan, will be deemed to
have accepted all risks associated with acquiring Shares pursuant to this Plan. Each Participant acknowledges that the Shares are subject
to, and may be required to be held indefinitely under, applicable securities laws. The Corporation and the Subsidiaries make no undertaking,
representation, warranty or guarantee as to the future value or price, or as to the listing on any stock exchange or other market, of
any Shares issued under this Plan, and will not be liable to any Participant for any loss resulting from that Participant’s participation
in this Plan or as a result of the amendment, suspension or termination of this Plan or any Option in accordance with its terms.

 

		5.4	Hold Period

 

The Options issued under this Plan, and the Shares issuable upon exercise
of the Options, may, in certain circumstances be subject to a 4 month hold period, or other resale restriction, commencing on the Grant
Date of the Option in accordance with the polices of the Exchange and/or applicable securities laws.

 

    

     

    

 

	Stock Option Plan	Page 18 of 23

 

		5.5	Notices

 

All written notices to be given by a Participant to the Corporation
will be delivered personally or by registered mail, postage prepaid, addressed as follows:

 

3610 Mavis Road

Mississauga, Ontario, L5C 1W2

 

		Attn:	Chief Executive Officer

 

Any notice given by a Participant pursuant to the terms of an Option
will not be effective until actually received by the Corporation at the above address.

 

		5.6	Further Assurances

 

Each Participant will, when requested to do so by the Corporation,
sign and deliver all documents relating to the granting or exercise of Options deemed necessary or desirable by the Corporation. Each
Participant will provide the Corporation with all information (including personal information) which is necessary for the administration
of this Plan, and each Participant consents to the collection, use and disclosure of information by the Corporation necessary for the
administration of this Plan.

 

		5.7	Submission to Jurisdiction

 

The Corporation and each Participant irrevocably and unconditionally
submits and attorns to the exclusive jurisdiction of the courts of the Province of Ontario to determine all issues, whether at law or
in equity, arising from this Plan and each Option Agreement. To the extent permitted by Applicable Laws, the Corporation and each Participant:

 

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

 

		5.7.2	irrevocably agrees not to seek, and waives any right to, judicial review by any court which may be called on to enforce the judgment
of the courts referred to in this Section 5.7, of the substantive merits of any suit, action or proceeding; and

 

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

 

    

     

    

 

	Stock Option Plan	Page 19 of 23

 

SCHEDULE 1

CALIFORNIA SUPPLEMENT

 

The Board has adopted this California Supplement for purposes of satisfying
the requirements of Section 25102(o). All capitalized terms used but not defined in this California Supplement shall have the meanings
ascribed to them in the Terrascend Corp. Stock Option Plan, as the same may be amended or varied from time to time (the “Plan”).

 

Notwithstanding anything to the contrary contained in the Plan, and
except as otherwise determined by the Corporation, the provisions set forth in this California Supplement shall apply to any Options granted
under the Plan to a U.S. Participant who is a resident of the State of California on the date of the Grant (each, a “California
Optionholder”) and which are intended to be exempt from registration in California pursuant to Section 25102(o).

 

All California Optionholders will be subject to the following additional
limitations, terms and conditions:

 

		1.	Minimum Exercise Period Following Termination

 

Unless a California Optionholder’s employment is terminated for
cause (as defined by applicable law or the terms of any contract of employment between the Corporation and such California Optionholder),
in the event of any other termination of employment of such California Optionholder, such California Optionholder shall have the right
to exercise an Option, to the extent that he or she was otherwise entitled to exercise such Option on the date employment terminated,
until the earlier of: (i) at least six (6) months from the date of termination, if termination was caused by such California
Optionholder’s death or “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code),
(ii) at least thirty (30) days from the date of termination, if termination was caused other than by such California Optionholder’s
death or “permanent and total disability” (within the meaning of Section 22(e)(3) of the Code), and (iii) the
Option Expiry Date.

 

		2.	Additional Limitations on Timing of Awards

 

No Option granted to a California Optionholder shall become exercisable,
vested or realizable unless the Plan has been approved by the holders of a majority of the Corporation’s outstanding voting securities
(i) within twelve (12) months before or after the date the Plan was adopted by the Board or (ii) prior to or within twelve (12)
months following the granting of any Option to a California Optionholder.

 

		3.	Additional Limitations on Options; Adjustments

 

No Option granted to a California Optionholder will be granted for
a term in excess of ten (10) years. The terms of all Options granted to a California Optionholder shall comply, to the extent applicable,
with Section 260.140.41 or Section 260.140.42 of the California Code of Regulations. The Corporation will make such adjustments
to an Option held by a California Optionholder as may be required by Section 260.140.41 or Section 260.140.42 of the California
Code of Regulations.

 

    

     

    

 

	Stock Option Plan	Page 20 of 23

 

		4.	Additional Requirement to Provide Information to California
Optionholders

 

To the extent required by Section 260.140.46 of the California
Code of Regulations (or any successor provision thereto), the Corporation shall provide to each California Optionholder and to each California
Optionholder who acquires Shares pursuant to the Plan, not less frequently than annually, copies of annual financial statements (which
need not be audited). The Corporation shall not be required to provide such statements to key persons whose duties in connection with
the Corporation assure their access to equivalent information. In addition, this information requirement shall not apply to the Plan to
the extent that it complies with all conditions of Rule 701, as determined by the Board; provided that, for purposes of determining
such compliance, any registered domestic partner shall be considered a “family member” as that term is defined in Rule 701.Exhibit 10.18

 

TERRASCEND CORP.

 

SHARE UNIT PLAN

 

 

Effective November 19, 2019

 

     

     

    

 

1.           PREAMBLE
AND DEFINITIONS

 

		1.1	Title.

 

The Plan described in this document shall be called the “TerrAscend
Corp. Share Unit Plan”.

 

		1.2	Purpose of the Plan.

 

The purposes of the Plan are:

 

		(a)	to promote a further alignment of interests between employees and the shareholders of the Corporation;

 

		(b)	to associate a portion of employees’ compensation with the returns achieved by shareholders of the Corporation; and

 

		(c)	to attract and retain employees with the knowledge, experience and expertise required by the Corporation.

 

		1.3	Definitions.

 

		1.3.1	“Act” means the Securities Act (Ontario), as such legislation may be amended, supplemented or replaced from
time to time.

 

		1.3.2	“Applicable Law” means at any time, with respect to any Person, property, transaction or event, all applicable
laws, statutes, regulations, treaties, judgments and decrees and (whether or not having the force of law) all applicable official directives,
rules, consents, approvals, by-laws, permits, authorizations and orders of any Governmental Authority having authority over that Person,
property, transaction or event, but in respect of the foregoing, excluding from the definition of “Applicable Law” for purposes
of this Plan any U.S. federal laws related to cannabis.

 

		1.3.3	“Beneficiary” means, subject to Applicable Law, an individual who has been designated by a Participant, in such
form and manner as the Board may determine, to receive benefits payable under the Plan upon the death of the Participant, or, where no
such designation is validly in effect at the time of death, the Participant’s legal representative.

 

		1.3.4	“Blackout Period” means the period during which designated Persons cannot trade Shares pursuant to the Corporation’s
policy, if any, respecting restrictions on trading which is in effect at that time

 

		1.3.5	“Board” means the board of directors of the Corporation.

 

		1.3.6	“California Supplement” means the California Supplement attached hereto as Schedule 1.

 

     

    	 	-2-	 

    

 

	 	1.3.7  	“Cause” in respect of a Participant means “just cause” “or “cause” for Termination by the Corporation or a Subsidiary as determined under Applicable Law; provided that, for a U.S. Participant who is employed in the United States, “Cause” means any of the following: (a) Participant materially breaches any fiduciary duty owed to the Corporation or a Subsidiary, including the duty of loyalty; (b) Participant fails to comply with any valid and legal directive of the Corporation that is material and is consistent with Participant’s obligations under the Participant’s employment agreement, which has not been complied with within ten (10) calendar days of written notice to Participant of such noncompliance; (c) Participant is convicted of or pleads guilty or nolo contendere to a crime that constitutes a felony (or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude or that results in material, reputational, or financial harm to the Corporation, its agents representatives, or its affiliates; (d) Participant engages in any act or omission that constitutes a material breach by Participant of any of Participant’s duties, responsibilities, and obligations under the Participant’s employment agreement, or any material written policy (as they may be in effect from time to time during Participant’s employment) of the Corporation or any Subsidiary, assuming such obligations are lawful, which has not been cured within ten (10) calendar days of written notice to the Participant; (e) Participant commits an act which negatively impacts the Corporation or its employees including, but not limited to, engaging in competition with the Corporation, disclosing confidential information or engaging in sexual harassment or discrimination in violation of policies of the Corporation; or (f) Participant engages in the unauthorized disclosure of confidential information of the Corporation. For purposes of this definition of “Cause,” an act or failure to act shall not be deemed willful or intentional unless Participant acted (or failed to act) in bad faith or without a reasonable belief that Participant’s action or omission was in the best interest of the Corporation. For avoidance of doubt, Participant’s failure to meet performance goals or objectives, by itself, shall not constitute Cause.

 

		1.3.8	“Change of Control” means:

 

		(a)	the acquisition of a sufficient number of voting securities in the capital of the Corporation so that the acquiror, together with
Persons acting jointly or in concert with the acquiror, becomes entitled, directly or indirectly, to exercise more than 50% of the voting
rights attaching to the outstanding voting securities in the capital of the Corporation (provided that, prior to the acquisition, the
acquiror was not entitled to exercise more than 50% of the voting rights attaching to the outstanding voting securities in the capital
of the Corporation);

 

		(b)	the completion of a consolidation, merger, arrangement or amalgamation of the Corporation with or into any other entity whereby the
voting securityholders of the Corporation immediately prior to the consolidation, merger, arrangement or amalgamation receive less than
50% of the voting rights attaching to the outstanding voting securities of the consolidated, merged, arranged or amalgamated entity; or

 

		(c)	the completion of a sale whereby all or substantially all of the Corporation’s undertakings and assets become the property of
any other entity and the voting securityholders of the Corporation immediately prior to the sale hold less than 50% of the voting rights
attaching to the outstanding voting securities of that other entity immediately following that sale. Notwithstanding the foregoing, to the extent that a Share
Unit granted to a U.S. Participant is subject to the requirements for Section 409A and the occurrence of a Change of Control (as
defined above) is a settlement event for such Share Unit, then such Change of Control shall not be a “Change of Control” for
purposes of such Share Unit unless such Change of Control also constitutes a “change in control event” as defined in U.S.
Treasury Regulation Section 1.409A-3(i)(5)(i).

 

     

    	 	-3-	 

    

 

		1.3.9	“Code” means the United States Internal Revenue Code of 1986, as amended from time to time.

 

		1.3.10	“Consultant” means a Person, or an individual employed by a Person, other than an Employee or a Director, that:

 

		(a)	is engaged to provide on an ongoing bona fide basis consulting, technical, management or other services to the Corporation or to a
Subsidiary, other than services provided in relation to a distribution of securities;

 

		(b)	provides the services under a written contract with the Corporation or a Subsidiary;

 

		(c)	in the reasonable opinion of the Board, spends or will spend a significant amount of time and attention on the affairs and business
of the Corporation or a Subsidiary;

 

		(d)	has a relationship with the Corporation or a Subsidiary that enables the individual to be knowledgeable about the business and affairs
of the Corporation; and

 

		(e)	in the case of a U.S. Participant, (A) is a natural person whom renders bona fide services to the Corporation or any Subsidiary,
and such services are not in connection with the offer and sale of securities in any capital-raising transaction and (B) does not
directly or indirectly promote or maintain a market for the Corporation’s or any Subsidiary’s securities.

 

		1.3.11	“Corporation” means TerrAscend Corp. and includes any successor corporation thereof.

 

		1.3.12	“Director” means a director of the Corporation or any Subsidiary.

 

		1.3.13	“Disability” means either:

 

		(a)	subject to (b) below, a physical or mental incapacity or disability that prevents the Eligible Person from performing the essential
duties of the Eligible Person’s employment or service with the Corporation or any Subsidiary, and which cannot be accommodated under
applicable human rights laws without imposing undue hardship on the Corporation or the Subsidiary employing or engaging the Eligible Person,
as determined by the Board for the purposes of this Plan; or

 

     

    	 	-4-	 

    

 

		(b)	where a Participant has a written employment or consulting agreement with the Corporation or a Subsidiary, “Disability”
as defined in such written agreement if applicable.

 

Notwithstanding the foregoing, to the extent that a Share
Unit granted to a U.S. Participant is subject to the requirements for Section 409A and the occurrence of a Disability (as defined
above) is a settlement event for such Share Unit, then such Disability shall not be a “Disability” for purposes of such Share
Unit unless such Disability also constitutes a “disability” as defined in U.S. Treasury Regulation Section 1.409A-3(i)(4).

 

		1.3.14	“Disability Date” means, in relation to a Participant, that date determined by the Board to be the date on which
the Participant experienced a Disability.

 

		1.3.15	“Eligible Person” means an individual Employed by the Corporation or any Subsidiary who, by the nature of his/her
position or duties are, in the opinion of the Board, in a position to contribute to the success of the Corporation.

 

		1.3.16	“Employed” means, with respect to a Participant, that:

 

		(a)	he/she is rendering services as a Director, officer, employee or Consultant to the Corporation or a Subsidiary; or

 

		(b)	he/she is not actively rendering services to the Corporation or a Subsidiary due to an approved leave of absence, maternity or parental
leave or leave on account of Disability

 

and “Employment’ has the corresponding
meaning.

 

		1.3.17	“Exchange” means the Canadian Securities Exchange, or, if the Shares are not then listed and posted for trading
on the Canadian Securities Exchange, on such stock exchange on which such Shares are listed and posted for trading as may be selected
for such purpose by the Board.

 

		1.3.18	“Governmental Authority” means:

 

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

 

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

 

		1.3.19	“Grant” means a grant of Share Units made pursuant to Section 3.1.

 

     

    	 	-5-	 

    

 

		1.3.20	“Grant Agreement” means an agreement between the Corporation and a Participant under which a Grant is made, as
contemplated by Section 3.1, together with such schedules, amendments, deletions or changes thereto as are permitted under the Plan.

 

		1.3.21	“Grant Date” means the effective date of a Grant.

 

		1.3.22	“Grant Value” means a dollar amount allocated to an Eligible Person in respect of a Grant as contemplated by Section 3.

 

		1.3.23	“Insider” means an “Insider” as defined in the policies of the Exchange.

 

		1.3.24	“Market Value” means, with respect to a date, (i) if the Shares are listed on the Exchange, the last closing
price of the Shares on the Exchange before such date; (ii) if the Shares are not then listed on the Exchange, but are listed on another
stock exchange or market, the last closing price of the Shares on the stock exchange or market before such date; or (iii) if neither
clause (i) nor (ii) applies, the fair market value of a Share determined by the Board, taking into account any considerations
which it determines to be appropriate at the relevant time.

 

		1.3.25	“Participant” has the meaning set forth in Section 3.2.1.

 

		1.3.26	“Performance Period” means, with respect to PSUs, the period specified by the Board for achievement of any applicable
Performance Conditions as a condition to Vesting.

 

		1.3.27	“Performance Conditions” means such financial, personal, operational or transaction-based
performance criteria as may be determined by the Board in respect of a Grant to any Participant or Participants and set out in a Grant
Agreement. Performance Conditions may apply to the Corporation, a Subsidiary, the Corporation and Subsidiaries as a whole, a business
unit of the Corporation or group comprised of the Corporation and some Subsidiaries or a group of Subsidiaries, either individually, alternatively
or in any combination, and measured either in total, incrementally or cumulatively over a specified performance period, on an absolute
basis or relative to a pre-established target or milestone, to previous years’ results or to a designated comparator group, or otherwise,
and may result in the percentage of Vested PSUs in a Grant exceeding 100% of the PSUs initially determined in respect of such Grant pursuant
to Section 3.2.3.

 

		1.3.28	“Person” will be broadly interpreted and includes:

 

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

 

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

 

     

    	 	-6-	 

    

 

		(c)	a Governmental Authority.

 

		1.3.29	“Plan” means this TerrAscend Corp. Share Unit Plan, including any schedules or appendices hereto, as may be amended
from time to time.

 

		1.3.30	“PSU” means a right, granted to a Participant in accordance with Section 3, to, subject to Section 6,
receive a Share, that generally becomes Vested, if at all, subject to the attainment of certain Performance Conditions and satisfaction
of such other conditions to Vesting, if any, as may be determined by the Board.

 

		1.3.31	“RSU” means a right granted to a Participant in accordance with Section 3, to, subject to Section 6,
receive a Share, that generally becomes Vested, if at all, following a period of continuous Employment of the Participant with the Corporation
or a Subsidiary.

 

		1.3.32	“Rule 701” means Rule 701 promulgated under the Securities Act.

 

		1.3.33	“SEC” means the U.S. Securities and Exchange Commission.

 

		1.3.34	“Section 25102(o)” means Section 25102(o) of the California Corporations Code, as may be amended
from time to time.

 

		1.3.35	“Section 409A” means Section 409A of the Code and any applicable, similar state or local tax law, rule,
or requirement governing nonqualified deferred compensation arrangements.

 

		1.3.36	“Securities Act” means the U.S. Securities Act of 1933, as may be amended from time to time.

 

		1.3.37	“Share” means a common share of the Corporation or, in the event of an adjustment contemplated by Section 5.3
hereof, such other Share to which a Participant may be entitled as a result of such adjustment.

 

		1.3.38	“Share Compensation Arrangement” means the Plan, the TerrAscend Corp. Stock Option Plan and any other security-based
compensation arrangement for the benefit of employees, insiders or service providers of the Corporation as determined in accordance with
the rules of the Exchange, or if the rules of the Exchange do not address such arrangements, the rules of the Toronto Stock
Exchange relating to security-based compensation arrangements.

 

		1.3.39	“Share Unit” means either an RSU or a PSU, as the context requires.

 

		1.3.40	“Share Unit Account” has the meaning set out in Section 5.1.

 

		1.3.41	“Subsidiary” means a body corporate that is controlled by the Corporation and, for the purposes of this definition,
a body corporate will be deemed to be controlled by the Corporation if the Corporation, directly or indirectly, has the power to direct
the management and policies of the body corporate by virtue of ownership of, or direction over, voting securities in the body corporate.

 

     

    	 	-7-	 

    

 

		1.3.42	“Termination” means (i) the termination of a Participant’s active Employment with the Corporation or
a Subsidiary (other than in connection with the Participant’s transfer to Employment with the Corporation or another Subsidiary),
which shall occur on the earlier of the date on which the Participant ceases to render services to the Corporation or Subsidiary, as applicable,
and the date on which the Corporation or a Subsidiary, as applicable, delivers notice of the termination of the Participant’s employment
to him/her, whether such termination is lawful or otherwise, without giving effect to any period of notice or compensation in lieu of
notice (except to the extent specifically required by applicable employment standards legislation), but, for greater certainty, a Participant’s
absence from active work during a period of vacation, temporary illness, authorized leave of absence, maternity or parental leave or leave
on account of Disability shall not be considered to be a “Termination”, and (ii) in the case of a Participant who does
not return to active Employment with the Corporation or a Subsidiary immediately following a period of absence due to vacation, temporary
illness, authorized leave of absence, maternity or parental leave or leave on account of Disability, such cessation shall be deemed to
occur on the last day of such period of absence, and “Terminated” and “Terminates” shall be construed
accordingly. Notwithstanding the foregoing, to the extent that a Share Unit granted to a U.S. Participant is subject to the requirements
for Section 409A and the occurrence of a Termination (as defined above) is a settlement event for such Share Unit, then such Termination
shall not be a “Termination” for purposes of such Share Unit unless such Termination constitutes a “separation from
service” as defined in U.S. Treasury Regulation Section 1.409A-1(h).

 

		1.3.43	“Time Vesting” means any conditions relating to continued service with the Corporation or a Subsidiary for a period
of time in respect of the Vesting of Share Units determined by the Board.

 

		1.3.44	“U.S. Participant” means a Participant who is employed primarily in the United States, or is a United States resident
or United States citizen for United States federal income tax purposes, or is otherwise subject to the applicable provisions of the Code.

 

		1.3.45	“Valuation Date” means the date as of which the Market Value is determined for purposes of calculating the number
of Share Units included in a Grant, which unless otherwise determined by the Board shall be the Grant Date of such Grant.

 

		1.3.46	“Vested” means
the applicable Time Vesting, Performance Conditions and/or any other conditions for payment or other settlement in relation to a whole
number, or a percentage (which may be more or less than 100%) of the number, of PSUs or RSUs determined by the Board in connection with
a Grant of PSUs or Grant of RSUs, as the case may be, (i) have been met; (ii) have been waived or deemed to be met pursuant
to Section 6.5; (iii) or are otherwise waived pursuant to Section 3.3, and “Vesting” and “Vest”
shall be construed accordingly.

 

		1.3.47	“Vesting Date” means the date on which the applicable Time-Vesting, Performance Conditions and/or any other conditions
for a Share Unit becoming Vested are met, deemed to have been met or waived as contemplated in Section 1.3.46.

 

     

    	 	-8-	 

    

 

		1.3.48	“Vesting Period” means, with respect to a Grant, the period specified by the Board, commencing on the Grant Date
and ending on the last Vesting Date for Share Units subject to such Grant, which, unless otherwise determined by the Board, shall not
be later than the end of the third year following the year in which the Participant performed the services to which the Grant relates.

 

		2.	CONSTRUCTION AND INTERPRETATION

 

		2.1	Certain Rules of Interpretation

 

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

 

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

 

		2.1.3	Headings wherever used herein are for reference purposes only and do not limit or extend the meaning of the provisions herein contained.
A reference to a section or schedule shall, except where expressly stated otherwise, mean a section or schedule of the Plan, as applicable.

 

		2.1.4	Unless otherwise specified in this Plan, time periods within which or following which any calculation or payment is to be made, or
action is to be taken, will be calculated by excluding the day on which the period begins and including the day on which the period ends.
If the last day of a time period is not a Business Day, the time period will end on the next Business Day. Unless otherwise determined
by the Board, if a Share Unit would, under the terms of this Plan or the Share Unit Agreement, otherwise expire or terminate on a day
which is not a Business Day, the Share Unit will expire or terminate on the next Business Day.

 

		2.2	Governing Law. The Plan shall be governed and interpreted in accordance with the laws of the Province of Ontario and
the laws of Canada applicable therein. The courts of the Province of Ontario shall have exclusive jurisdiction to settle any dispute arising
out of or in connection with this Plan including any actions, proceedings or claims in any way pertaining to the Plan

 

		2.3	Severability. If any provision or part of the Plan is determined to be void or unenforceable in whole or in part, such
determination shall not affect the validity or enforcement of any other provision or part thereof.

 

		3.	SHARE UNIT GRANTS AND VESTING PERIODS

 

		3.1	Plan Administration and Grants of Share Units.

 

The Plan shall be administered by
the Board. The Board shall have the authority in its sole and absolute discretion to administer the Plan and to exercise all the
powers and authorities either specifically granted to it under the Plan or necessary or advisable in the administration of the Plan
subject to and not inconsistent with the express provisions of this Plan, including, without limitation, the authority:

 

		(a)	to make Grants;

 

     

    	 	-9-	 

    

 

 (b)           to determine the Grant Date for Grants;

 

(c)           to
determine the Eligible Persons to whom, and the time or times at which Grants shall be made and shall become issuable;

 

(d)           to
approve or authorize the applicable form and terms of the related Grant Agreements and any other forms to be used in connection with the
Plan;

 

(e)           to
determine the terms and conditions of Grants granted to any Participant, including, without limitation, (A) the type of Share Unit,
(B) the number of RSUs or PSUs subject to a Grant, (C) when applicable, the Grant Value and the Valuation Date (if not the Grant
Date) for a Grant; (D) the Vesting Period(s) applicable to a Grant, (E) the conditions to the Vesting of any Share Units
granted hereunder, including terms relating to Performance Conditions, Time Vesting and/or other Vesting conditions, any multiplier that
may apply to Share Units subject to a Grant in connection with the achievement of Vesting conditions, the Performance Period for PSUs
and the conditions, if any, upon which Vesting of any Share Unit will be waived or accelerated without any further action by the Board
(including, without limitation, the effect of a Change of Control and a Participant’s Termination in connection therewith), (F) the
circumstances upon which a Share Unit shall be forfeited, cancelled or expire, (G) the consequences of a Termination with respect
to a Share Unit, (H) the manner and time of exercise or settlement of Vested Share Units, and (I) whether and the terms upon
which any Shares delivered upon exercise or settlement of a Share Unit must continue to be held by a Participant for any specified period;

 

(f)            to
determine whether and the extent to which any Performance Conditions or other criteria applicable to the Vesting of a Share Unit have
been satisfied or shall be waived or modified;

 

(g)           to
amend the terms of any outstanding Grant under the Plan or Grant Agreement provided, however, that no such amendment, suspension or termination
shall be made at any time to the extent such action would materially adversely affect the existing rights of a Participant with respect
to any then outstanding Share Unit without his/her consent in writing and provided further, however, that, notwithstanding the foregoing
clause of this Section 3.1(g), the Board may amend the terms of a Share Unit or Grant Agreement without the consent of the Participant
for purposes of complying with Applicable Law whether or not such amendment could adversely affect the rights of the Participant;

 

(h)           to
determine whether, and the extent to which, adjustments shall be made pursuant to Section 5.3 and the terms of any such adjustments;

 

(i)            to
interpret the Plan and Grant Agreements;

 

(j)            to
prescribe, amend and rescind such rules and regulations and make all determinations necessary or desirable for the administration
and interpretation of the Plan and Grant Agreements;

 

     

    	 	-10-	 

    

 

(k)           to
determine the terms and provisions of Grant Agreements (which need not be identical) entered into in connection with Grants; and

 

(l)            to
make all other determinations deemed necessary or advisable for the administration of the Plan.

 

		3.2	Eligibility and Award Determination.

 

		3.2.1	In determining the Eligible Persons to whom Grants are to be made (“Participants”) and the Grant Value for each
Grant (subject to adjustment in accordance with Time Vesting or Performance Conditions), the Board shall take into account the terms of
any written employment agreement between an Eligible Person and the Corporation or a Subsidiary and may take into account such other factors
as it shall determine in its sole and absolute discretion.

 

		3.2.2	For greater certainty and without limiting the discretion conferred on the Board pursuant to this Section, the Board’s decision
to approve a Grant in any period shall not require the Board to approve a Grant to any Participant in any other period; nor shall the
Board’s decision with respect to the size or terms and conditions of a Grant in any period require it to approve a Grant of the
same or similar size or with the same or similar terms and conditions to any Participant in any other period. The Board shall not be precluded
from approving a Grant to any Participant solely because such Participant may have previously received a Grant under this Plan or any
other similar compensation arrangement of the Corporation or a Subsidiary. No Eligible Person has any claim or right to receive a Grant
except as may be provided in a written employment agreement between an Eligible Person and the Corporation or a Subsidiary.

 

		3.2.3	Each Grant Agreement shall set forth, at a minimum, the type of Share Units and Grant Date of the Grant evidenced thereby, the number
of RSUs or PSUs subject to such Grant, the applicable Vesting conditions, the applicable Vesting Period(s) and the treatment of the
Grant upon Termination and may specify such other terms and conditions consistent with the terms of the Plan as the Board shall determine
or as shall be required under any other provision of the Plan. The Board may include in a Grant Agreement terms or conditions pertaining
to confidentiality of information relating to the Corporation’s operations or businesses which must be complied with by a Participant
including as a condition of the grant or Vesting of Share Units.

 

		3.3	Discretion of the Board. Notwithstanding any other provision hereof or of any applicable instrument of grant, the Board
may accelerate or waive any condition to the Vesting of any Grant, all Grants, any class of Grants or Grants held by any group of Participants.

 

		3.4	Effects of Board’s Decision. Any interpretation, rule, regulation, determination or other act of the Board hereunder
shall be made in its sole discretion and shall be conclusively binding upon all persons.

 

     

    	 	-11-	 

    

 

	 	3.5  	Limitation of Liability. No member of the Board, the Board or any officer or employee of the Corporation or a Subsidiary shall be liable for any action or determination made in good faith pursuant to the Plan or any Grant Agreement under the Plan. To the fullest extent permitted by law, the Corporation and the Subsidiaries shall indemnify and save harmless each person made, or threatened to be made, a party to any action or proceeding in respect of the Plan by reason of the fact that such person is or was a member of the Board or the Board or is or was an officer or employee of the Corporation or a Subsidiary.

 

		3.6	Delegation and Administration. The Board may, in its discretion, delegate such of its powers, rights and duties under
the Plan, in whole or in part, to any one or more directors, officers or employees of the Corporation as it may determine from time to
time, on terms and conditions as it may determine, except the Board shall not, and shall not be permitted to, delegate any such powers,
rights or duties to the extent such delegation is not consistent with Applicable Law. The Board may also appoint or engage a trustee,
custodian or administrator to administer or implement the Plan or any aspect of it, except that the Board shall not, and shall not be
permitted to, appoint or engage such a trustee, custodian or administrator to the extent such appointment or engagement is not consistent
with Applicable Law.

 

		4.	SHARE RESERVE.

 

		4.1	Shares Reserved and Plan Limits

 

		4.1.1	The number of Shares that may be reserved for issuance under this Plan and under any other Share Compensation Arrangement will not
exceed, in the aggregate, 10% of the outstanding Shares (including the Shares issuable on exchange of the outstanding proportionate voting
shares and exchangeable shares of the Corporation, but otherwise on a non-diluted basis) on each Grant Date.

 

		4.1.2	The Corporation will at all times during the term of this Plan reserve and keep available the number of Shares necessary to satisfy
the requirements of this Plan.

 

		4.2	Limits on Certain Grants

 

		4.2.1	A Share Unit may only be granted to a Consultant under this Plan if the number of Shares reserved for issuance under that Share Unit,
when combined with the number of Shares reserved for issuance under all Share Units granted within the one-year period before the Grant
Date by the Corporation to Consultants, does not exceed, in aggregate, 2% of the outstanding Shares on the Grant Date (with the outstanding
Shares being calculated including the Shares issuable on exchange of the outstanding proportionate voting shares and exchangeable shares
of the Corporation, but otherwise on a non-diluted basis, and excluding Shares issued to Consultants within the previous one-year period
pursuant to the exercise of Share Units).

 

		4.2.2	A Share Unit may only be granted to a Person under this Plan if the number of Shares reserved for issuance under that Share Unit,
when combined with the number of Shares reserved for issuance under all Share Units granted within the one-year period before the Grant
Date by the Corporation to that Person, does not exceed, in aggregate, 5% of the outstanding Shares on the Grant Date (with the outstanding
Shares being calculated including the Shares issuable on exchange of the outstanding proportionate voting shares and exchangeable shares
of the Corporation, but otherwise on a non-diluted basis, and excluding Shares issued to that Person within the previous one-year period pursuant
to the exercise of Share Units), unless any disinterested shareholder approval required by the Exchange has been obtained.

 

     

    	 	-12-	 

    

 

		4.2.3	Unless disinterested shareholder approval is obtained, the number of Shares that may be reserved for issuance to Insiders under this
Plan and under any other Share Compensation Arrangement will not exceed, in the aggregate, 10% of the outstanding Shares (including the
Shares issuable on exchange of the outstanding proportionate voting shares and exchangeable shares of the Corporation, but otherwise on
a non- diluted basis) at any point in time.

 

		4.2.4	Unless disinterested shareholder approval is obtained, Share Units may only be granted to an Insider under this Plan if the number
of Shares reserved for issuance in respect of those Share Units, when combined with the number of Shares reserved for issuance in respect
of all Share Units granted within the one-year period before the Grant Date by the Corporation to Insiders, does not exceed, in aggregate,
10% of the outstanding Shares on the Grant Date (with the outstanding Shares being calculated including the Shares issuable on exchange
of the outstanding proportionate voting shares and exchangeable shares of the Corporation, but otherwise on a non-diluted basis, and excluding
Shares issued to Insiders within the previous one-year period pursuant to the exercise of Share Units).

 

		4.2.5	For the purposes of calculating the limits in this Section 4.2:

 

		(a)	the number of Shares reserved for issuance in respect of a Share Unit means the number of Shares which were originally reserved for
issuance upon the date of grant of the Share Unit (except for the purposes of calculating the limit in Section 4.2.4, in which case
the number of Shares reserved for issuance means the number of Shares reserved for issuance at the time of the calculation); and

 

		(b)	any Share Units granted within the relevant time but prior to the grantee becoming a Consultant or Insider, as applicable (a “Restricted
Person”), and any Shares reserved or issued under those grants, will be included in the number of Share Units granted to those Restricted
Persons, in the number of Shares reserved for issuance to those Restricted Persons, and in the number of Shares issued to those Restricted
Persons, if the grantee becomes a Restricted Person on or before the date the calculation is made.

 

		5.	ACCOUNTS, DIVIDEND EQUIVALENTS AND REORGANIZATION

 

		5.1	Share Unit Account. An account, called a “Share Unit Account”, shall be maintained by the
                                                                Corporation, or a Subsidiary, as specified by the Board, for each Participant and will be credited with such notional grants of
                                                                Share Units as are received by a Participant from time to time pursuant to Sections 3.1 and 3.2 and any dividend equivalent Share
                                                                Units pursuant to Section 5.2. Share Units that fail to vest and are forfeited by a Participant pursuant to Section 6, or
                                                                that are paid out to the Participant or his/her Beneficiary, shall be cancelled and shall cease to be recorded in the
                                                                Participant’s Share Unit Account as of the date on which such Share Units are forfeited or cancelled under the Plan or are
                                                                paid out, as the case may be. For greater certainty, where a Participant is granted both RSUs and PSUs,
such RSUs and PSUs shall be recorded separately in the Participant’s Share Unit Account.

 

     

    	 	-13-	 

    

 

		5.2	Dividend Equivalent Share Units. A Grant Agreement relating to a Grant may provide that, if and when cash dividends
(other than extraordinary or special dividends) are paid with respect to Shares to shareholders of record as of a record date occurring
during the period from the Grant Date under the Grant Agreement to the date of settlement of the RSUs or PSUs granted thereunder, a number
of dividend equivalent RSUs or PSUs, as the case may be, shall be credited to the Participant who is a party to such Grant Agreement.
Where additional RSUs or PSUs are credited to a Participant’s Share Unit Account as dividend equivalents, the number of such additional
RSUS or PSUs will be calculated by dividing the aggregate dividends or distributions that would have been paid to such Participant if
the RSUs or PSUs in the Participant’s Share Unit Account on the dividend record date had been Shares by the Market Value on the
date on which the dividends or distributions were paid on the Shares. The additional RSUs or PSUs will be subject to the same terms and
conditions, including Vesting and settlement terms, as the corresponding RSUs or PSUs granted under the applicable Grant Agreement.

 

		5.3	Adjustments. In the event of any stock dividend, stock split, combination or exchange of shares, capital reorganization,
consolidation, spin-off, dividends (other than cash dividends in the ordinary course) or other distribution of the Corporation’s
assets to shareholders, or any other similar changes affecting the Shares, a proportionate adjustment to reflect such change or changes
shall be made with respect to the number of Share Units outstanding under the Plan, or securities into which the Shares are changed or
are convertible or exchangeable may be substituted for Shares under this Plan, (1) on a basis proportionate to the number of Share
Units in the Participant’s Share Unit Account or (2) as determined by the Board in its sole discretion subject to any applicable
Exchange approval.

 

		6.	VESTING AND SETTLEMENT OF SHARE UNITS

 

		6.1	Settlement.

 

		6.1.1	A Participant’s Vested RSUs and Vested PSUs, adjusted in accordance with the applicable multiplier, if any, as set out in the
Grant Agreement, and rounded down to the nearest whole number of RSUs or PSUs, as the case may be, shall be settled, by a distribution
as provided below to the Participant or his/her Beneficiary, upon or as soon as reasonably practicable following the Vesting thereof in
accordance with Section 6.3 or 6.5, as the case may be, subject to the terms of the applicable Grant Agreement. In all events Vested
RSUs and Vested PSUs will be settled on or before the sixtieth day following the Vesting Date subject to Section 9.1.

 

		6.1.2	Settlement shall be made by the issuance of one Share for each RSU or PSU then being settled, subject to payment or other satisfaction
of all related withholding obligations in accordance with Section 9.2.

 

		6.2	Failure to Vest. For greater certainty, a Participant shall have no right to receive Shares or a cash payment, as compensation,
damages or otherwise, with respect to any RSUs or PSUs that do not become Vested.

 

     

    	 	-14-	 

    

 

		6.3	Vesting. Subject to this Section 6, Share Units subject to a Grant and dividend equivalent Share Units credited
to the Participant’s Share Unit Account in respect of such Share Units shall vest in such proportion(s) and on such Vesting
Date(s) as may be specified in the Grant Agreement governing such Grant provided that the Participant is Employed on the relevant
Vesting Date. For greater certainty, in the Board’s sole discretion, a Participant may not be considered to be Employed on a Vesting
Date if, prior to such Vesting Date, such Participant received a payment in lieu of notice of Termination of employment, whether under
a contract of employment, as damages or otherwise.

 

		6.4	Termination of Employment for Cause or Resignation. Subject to the terms of a Participant’s written employment
or consulting agreement with the Corporation or a Subsidiary and the relevant Grant Agreement, and unless otherwise determined by the
Board, in the event a Participant’s employment is Terminated for Cause by the Corporation, or a Subsidiary, as applicable, or a
Participant’s employment with the Corporation or a Subsidiary Terminates as a result of the Participant’s resignation, no
Share Units that have not Vested and been settled prior to the date of the Participant’s Termination for Cause or the last day of
employment for a Participant who has resigned, as the case may be, including dividend equivalent Share Units in respect of such Share
Units, shall Vest and all such Share Units shall be forfeited immediately.

 

		6.5	Termination of Employment without Cause, Death or Disability. Subject to the terms of a Participant’s written
employment or consulting agreement with the Corporation or a Subsidiary and the relevant Grant Agreement, in the event a Participant’s
employment is Terminated by the Corporation, or a Subsidiary, as applicable, without Cause, the Participant dies or experiences a Disability
prior to the end of a Vesting Period relating to a Grant:

 

		(a)	the number of RSUs determined by the formula A x B/C, where

 

		A	equals the total number of RSUs relating to such Grant that have not previously Vested and dividend equivalent RSUs in respect of
such RSUs,

 

		B	equals the total number of days between the first day of the Vesting Period

 

relating to such Grant and the Participant’s date of
Termination (including due to death), or Disability Date, as the case may be, and

 

		C	equals total number of days in the Vesting Period relating to such Grant,

 

shall become Vested RSUs on the Participant’s date
of Termination or Disability Date, as the case may be; and

 

		(b)	the number of PSUs, if any, determined by the formula A x B/C, where

 

		A	equals the total number of PSUs recorded in the Participant’s Share Unit Account relating to such Grant that have not previously
Vested, including dividend equivalent PSUs, adjusted by the Board based on the extent to which the Performance Conditions set out in the
Grant Agreement applicable to such Grant would have been met if the Performance Period for the Grant had ended as of the last day of the
month immediately preceding the Participant’s date of Termination (including
due to death) or Disability Date, as the case may be,

 

     

    	 	-15-	 

    

 

		B	equals the total number of days between the first day of the Performance Period relating to such Grant and the Participant’s
date of Termination or Disability Date, as the case may be, and

 

		C	equals the total number of days in the Performance Period relating to such Grant,

 

shall become Vested PSUs on the Participant’s date
of Termination or Disability Date, as the case may be.

 

		6.6	Change of Control. Despite any other provision of this Plan or any Grant Agreement, in the event of an actual or potential
Change of Control, the Board has the right, in its sole discretion and on the terms it sees fit, without any action or consent required
on the part of any Participant, to deal with any Share Units in the manner it deems equitable and appropriate in the circumstances, including
the right to:

 

		(a)	determine that any Share Units will remain in full force and effect in accordance with their terms after the Change of Control;

 

		(b)	cause any Share Units to be converted or exchanged for rights to acquire shares of another entity involved in the Change of Control,
having the same value and terms and conditions as the Share Units (except that Performance Conditions relating to PSUs may be adjusted
to refer to such other entity, any of its affiliates and/or a business unit of such other entity or its affiliates);

 

		(c)	accelerate the Vesting of any unvested Share Units; and

 

		(d)	provide Participants with the right to surrender Share Units for an amount per Share Unit equal to the Market Value.

 

Notwithstanding the foregoing, the Board shall not have
any discretion under this Section 6.6 to take any action with respect to a U.S. Participant’s Share Units that would cause
a violation of Section 409A.

 

		6.7	The Corporation will use its best efforts to give the affected Participants written notice of any determination made by the Board
under Section 6.6 at least 14 days before the effective date of the Change of Control Transaction.

 

     

    	 	-16-	 

    

 

		7.	CURRENCY

 

		7.1	Currency. Except where the context otherwise requires, all references in the Plan to currency refer to lawful Canadian
currency. Any amounts required to be determined under this Plan that are denominated in a currency other than Canadian dollars shall be
converted to Canadian dollars at the applicable Bank of Canada noon rate of exchange on the date as of which the amount is required to
be determined.

 

8.           SHAREHOLDER
RIGHTS

 

		8.1	No Rights to Shares. Share Units are not Shares and a Grant of Share Units will not entitle a Participant to any shareholder
rights, including, without limitation, voting rights, dividend entitlement or rights on liquidation.

 

9.           MISCELLANEOUS

 

		9.1	Compliance with Laws Policies. The Corporation’s obligation to deliver any Shares hereunder is subject to compliance
with Applicable Law. Each Participant shall acknowledge and agree (and shall be conclusively deemed to have so acknowledged and agreed
by participating in the Plan) that the Participant will, at all times, act in strict compliance with Applicable Law and all other laws
and any policies of the Corporation applicable to the Participant in connection with the Plan including, without limitation, furnishing
to the Corporation all information and undertakings as may be required to permit compliance with Applicable Law.

 

		9.2	Withholdings. So as to ensure that the Corporation or a Subsidiary, as applicable, will be able to comply with the applicable
obligations under any federal, provincial, state or local law relating to the withholding of tax or other required deductions, the Corporation
or the Subsidiary shall withhold or cause to be withheld from any amount payable to a Participant, either under this Plan, or otherwise,
such amount as may be necessary to permit the Corporation or the Subsidiary, as applicable, to so comply. The Corporation and any Subsidiary
may also satisfy any liability for any such withholding obligations, on such terms and conditions as the Corporation may determine in
its sole discretion, by (a) selling on such Participant’s behalf, or requiring such Participant to sell, any Shares, and retaining
any amount payable which would otherwise be provided or paid to such Participant in connection with any such sale, or (b) requiring,
as a condition to the delivery of Shares in settlement of any Participant’s Share Units, that such Participant make such arrangements
as the Corporation may require so that the Corporation and the Subsidiaries can satisfy such withholding obligations, including requiring
such Participant to remit an amount to the Corporation or a Subsidiary in advance, or reimburse the Corporation or any Subsidiary for,
any such withholding obligations.

 

		9.3	No Right to Continued Employment. Nothing in the Plan or in any Grant Agreement entered into pursuant hereto shall confer
upon any Participant the right to continue in the employ or service of the Corporation or any Subsidiary, to be entitled to any remuneration
or benefits not set forth in the Plan or a Grant Agreement or to interfere with or limit in any way the right of the Corporation or any
Subsidiary to terminate Participant’s employment or service arrangement with the Corporation or any Subsidiary.

 

		9.4	No Additional Rights. Neither the designation of an employee as a Participant nor the grant of any Share Units to any
Participant entitles any person to the grant, or any additional grant, as the case may be, of any Share Units under the Plan.

 

		9.5	Amendment, Termination. The Plan and any Grant may be amended, modified or terminated by the Board, subject to the requirements
of the Exchange, including any shareholder approval requirements, without approval of shareholders, and provided that no amendment to
the Plan or a Grant may be made without the consent of a Participant if it materially adversely alters or otherwise
materially impairs the rights of the Participant in respect of any Grant previously granted to such Participant under the Plan.

 

     

    	 	-17-	 

    

 

		9.6	Administration Costs. The Corporation will be responsible for all costs relating to the administration of the Plan.

 

		9.7	Designation of Beneficiary. Subject to the requirements of Applicable Law, a Participant may designate a Beneficiary,
in writing, to receive any benefits that are payable under the Plan upon the death of such Participant. The Participant may, subject to
Applicable Law, change such designation from time to time. Such designation or change shall be in such form as may be prescribed by the
Board from time to time. A Beneficiary designation under this Section 9.7 and any subsequent changes thereto shall be filed with
the Secretary of the Corporation.

 

		9.8	Section 409A. This Section 9.8 applies only to Share Units granted to U.S. Participants.

 

		a.	The Share Units are intended to be exempt from or compliant with the requirements of Section 409A. To the extent that any Share
Unit is subject to the requirements of Section 409A, then, with respect to such Share Unit, (i) this Plan and any corresponding
Grant Agreement will be interpreted to the maximum extent possible in a manner to comply with the requirements of Section 409A, and
(ii) the settlement of such Share Unit may only be made upon an event and in a manner that complies with Section 409A.

 

		b.	Notwithstanding any other provision in this Plan or any Grant Agreement regarding the settlement of a Share Unit, the settlement of
any Share Unit that is subject to the requirements of Section 409A that is made as a result of a “separation from service”
(as defined under Section 409A) during the six (6)-month period immediately following a U.S. Participant’s separation from
service will not be made during that six (6)-month period immediately following such separation from service if the U.S. Participant is
then deemed to be a "specified employee" (as defined under and determined in accordance with Section 409A) of a service
provider whose stock is publicly traded on an established securities market or otherwise. Such settlement will instead be made on the
first day of the seventh month immediately following such separation from service. This paragraph and the six (6)-month delay contained
herein will cease to be applicable in the event of and following the U.S. Participant’s death.

 

		c.	Each payment made under this Plan with respect to any Share Unit will be designated as a “separate payment” within the
meaning of and for purposes of Section 409A.

 

		d.	Notwithstanding anything in this Plan or any Grant Agreement to the contrary, neither the Corporation nor any Subsidiary makes any
representation to any Participant, any Beneficiary, or any other Person about the effect of Section 409A on the provisions of this
Plan or any grant of Share Units, and neither the Corporation nor any Subsidiary will have any liability to any Participant, any Beneficiary,
or any other Person in the event that such Participant, Beneficiary, or other Person becomes subject to taxation (including taxes, penalties,
and interest) under Section 409A (other than any reporting and/or
withholding obligations that the Corporation or any Subsidiary may have under applicable tax law) or in the event any Participant, any
Beneficiary, or any other Person incurs other expenses on account of non-compliance or alleged non-compliance with Section 409A.

 

     

    	 	-18-	 

    

 

		9.9	Additional Securities Law Requirements for U.S. Participants. This Section 9.9 applies only to Share Units granted
to U.S. Participants:

 

		a.	This Plan is intended to be a written compensatory benefit plan within the meaning of Rule 701 or, to the extent applicable,
Section 25102(o); however, grants may be made to U.S. Participants pursuant to this Plan which do not specifically qualify for exemption
from registration under Rule 701 or, to the extent applicable, Section 25102(o). A Grant may be awarded in reliance upon other
state securities law exemptions, as applicable, and any requirement of this Plan which is required in law only because of Section 25102(o) will
not apply with respect to a particular Grant to which Section 25102(o) will not apply in light of the particular U.S. Participant.

 

		b.	Any provision of this Plan that is inconsistent with Rule 701 (or, to the extent applicable, Section 25102(o)) shall, without
further act or amendment by the Corporation, be reformed to comply with the requirements of Rule 701 (and, to the extent applicable,
Section 25102(o)). Any Grants made to any U.S. Participant hereunder will not be effective unless such grant is made in compliance
in all respects with Applicable Laws, including all applicable federal, state and foreign securities laws, rules and regulations
of any Governmental Authority, as well as the requirements of any U.S. or foreign stock exchange or automated quotation system upon which
the Corporation’s securities may then be listed or quoted, as they are in effect on the date of the Grant. The Corporation shall
be under no obligation to register or qualify the Share Units with the SEC, any state or foreign securities commission or any stock exchange
to effect such compliance, and the Corporation will have no liability for any inability or failure so do.

 

		c.	Notwithstanding any other provision in this Plan to the contrary, the Corporation shall have no obligation to issue or deliver any
securities under this Plan, including any Share Units, to any U.S. Participant prior to (i) obtaining any approvals from any Governmental
Authority that the Corporation determines in its discretion are necessary or advisable, and/or (ii) compliance with any exemption,
completion of any registration or other qualification of such securities under any federal, state or foreign law or ruling of any Governmental
Authority that the Corporation determines in its discretion to be necessary or advisable.

 

		d.	For the avoidance of doubt, a Consultant shall only be eligible to receive a Grant in reliance on Rule 701 to the extent that
such Consultant is a natural person as described under Section 1.3.10(e).

 

10.           ASSIGNMENT

 

		10.1	Subject to Section 9.7, the assignment or transfer of the Share Units, or any other benefits under this Plan, shall not be permitted
other than by operation of law.

 

     

    	 	-19-	 

    

 

11.           EFFECTIVE
DATE

 

		11.1	The Corporation is establishing the Plan effective on November 19, 2019.

 

     

     

    

 

SCHEDULE 1

 

CALIFORNIA SUPPLEMENT

 

The Board has adopted this California Supplement for purposes of satisfying
the requirements of Section 25102(o). All capitalized terms used but not defined in this California Supplement shall have the meanings
ascribed to them in the TerrAscend Corp. Share Unit Plan, as the same may be amended or varied from time to time (the “Plan”).

 

Notwithstanding anything to the contrary contained in the Plan, and
except as otherwise determined by the Corporation, the provisions set forth in this California Supplement shall apply to any Grants made
under the Plan to a U.S. Participant who is a resident of the State of California on the date of the Grant (each, a “California
Holder”) and which are intended to be exempt from registration in California pursuant to Section 25102(o).

 

All California Holders will be subject to the following additional
limitations, terms and conditions:

 

1.           Additional
Limitations on Timing of Awards

 

No Share Units granted to a California Holder shall become vested or
realizable unless the Plan has been approved by the holders of a majority of the Corporation’s outstanding voting securities (i) within
twelve (12) months before or after the date the Plan was adopted by the Board or (ii) prior to or within twelve (12) months following
the Grant to a California Holder.

 

2.           Additional
Limitations; Adjustments

 

No Share Units granted to a California Holder will be granted for a
term in excess of ten (10) years. The terms of all Share Units granted to a California Holder shall comply with Section 260.140.42
of the California Code of Regulations. The Corporation will make such adjustments to any Share Units held by a California Holder as may
be required by Section 260.140.42 of the California Code of Regulations.

 

3.           Additional
Requirement to Provide Information to California Holders

 

To the extent required by Section 260.140.46 of the California
Code of Regulations (or any successor provision thereto), the Corporation shall provide to each California Holder and to each California
Holder who acquires Shares pursuant to the Plan, not less frequently than annually, copies of annual financial statements (which need
not be audited). The Corporation shall not be required to provide such statements to key persons whose duties in connection with the Corporation
assure their access to equivalent information. In addition, this information requirement shall not apply to the Plan to the extent that
it complies with all conditions of Rule 701, as determined by the Board; provided that, for purposes of determining such compliance,
any registered domestic partner shall be considered a “family member” as that term is defined in Rule 701.

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