Document:

EX-4.1

 Exhibit 4.1 

COMMON SHARE PURCHASE WARRANT 

VILLAGE FARMS INTERNATIONAL, INC. 
  

			
	Warrant Shares: _______	  	Initial Exercise Date: March [__] 20211
		
		  	Issue Date: September [__], 2020

 THIS COMMON SHARE PURCHASE WARRANT (the “Warrant”) certifies that, for value received, [_________________] or
its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after March [__],
20212 (the “Initial Exercise Date”) and on or prior to 5:00 p.m. (New York City time) on September [___], 2025 (the “Termination Date”), but not thereafter,
to subscribe for and purchase from Village Farms International, Inc., a Canadian corporation (the “Company”), up to [______]common shares, without par value (the “Common Shares”) (as subject to adjustment hereunder, the
“Warrant Shares”). This Warrant is one of the Warrants to Purchase Common Stock (the “Warrants”) issued pursuant to (i) that certain Securities Purchase Agreement, dated as of September [8], 2020 (the
“Subscription Date”) by and between the Company and investors party thereto, (ii) the Company’s Registration Statement on Form S-3 (File number
333-237792) (the “Registration Statement”) and (iii) the Company’s prospectus supplement, dated as of September [8], 2020, and the related base prospectus, included in the
Registration Statement (collectively, the “Prospectus”). 
 The purchase price of one Common Share under this Warrant shall
be equal to the Exercise Price, as defined in Section 2(b). 
 Section 1. Definitions. Capitalized
terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated September [__], 2020, among the Company and the Holder. 

Section 2. Exercise. 

a) Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at
any time or times on or after the Initial Exercise Date and on or before the Termination Date by delivery to the Company of a duly executed facsimile copy (or.pdf copy via e-mail attachment) of the Notice of
Exercise in the form annexed hereto (the “Notice of Exercise”). Within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period (as defined in
Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the unpaid portion of the aggregate Exercise Price for the Warrant Shares specified in the applicable Notice of Exercise by wire transfer or
cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of
Exercise shall be required, nor shall any medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically
surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation
within three (3) Trading Days of the date on which the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall
have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant
Shares purchased and the date of such purchases. The Company shall deliver any objection to any Notice of Exercise within one (1) Trading Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant,
acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the
amount stated on the face hereof. 
  

	1 	 6 months after the issuance date. 

	2 	 6 months after the issuance date. 

 b) Exercise Price. The exercise price per Common Share under this
Warrant shall be $5.80, subject to adjustment hereunder (the “Exercise Price”). 
 c) Cashless
Exercise. If at any time during the term of this Warrant, there is no effective registration statement (which may be the Registration Statement) registering, or no current prospectus available for, the issuance or resale of the Warrant Shares by
the Holder, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares determined according to the following formula (a “Cashless
Exercise”): 
 Net Number = (A x B) - (A x C) 

                B 

For purposes of the foregoing formula: 

(A) = the total number of shares with respect to which the Warrants are then being exercised. 

(B) = as applicable: (i) the VWAP on the Trading Day immediately preceding the date of the applicable Notice of Exercise if such Notice of
Exercise is (1) both executed and delivered pursuant to Section 2(a) hereof on a day that is not a Trading Day or (2) both executed and delivered pursuant to Section 2(a) hereof on a Trading Day prior to the opening of
“regular trading hours” (as defined in Rule 600(b)(64) of Regulation NMS promulgated under the federal securities laws) on such Trading Day, (ii) at the option of the Holder, either (y) the VWAP on the Trading Day immediately
preceding the date of the applicable Notice of Exercise or (z) the Bid Price of the Common Share on the principal Trading Market as reported by Bloomberg L.P. as of the time of the Holder’s execution of the applicable Notice of Exercise if
such Notice of Exercise is executed during “regular trading hours” on a Trading Day and is delivered within two (2) hours thereafter (including until two (2) hours after the close of “regular trading hours” on a Trading
Day) pursuant to Section 2(a) hereof or (iii) the VWAP on the date of the applicable Notice of Exercise if the date of such Notice of Exercise is a Trading Day and such Notice of Exercise is both executed and delivered pursuant to
Section 2(a) hereof after the close of “regular trading hours” on such Trading Day; and 
 (C) = the Exercise Price then in
effect for the applicable Warrant Shares at the time of such exercise. 
 If Warrant Shares are issued in such a cashless exercise, the parties acknowledge
and agree that in accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not to take any position contrary to this
Section 2(c). Notwithstanding anything to the contrary, without limiting the rights of the Holder to receive liquidated damages pursuant to Section 2(d)(i) and Section 2(d)(iv) herein, in the event the Company does not have or
maintain an effective registration statement, there are no circumstances that would require the Company to make any cash payments or net cash settle the purchase warrants to the holders. 

“Bid Price” means, for any date, the price determined by the first of the following clauses that applies: (a) if the
Common Share is then listed or quoted on a Trading Market, the bid price of the Common Share for the time in question (or the nearest preceding date) on the Trading Market on which the Common Shares are then listed or quoted as reported by Bloomberg
L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Share for such date (or the nearest preceding date)
on OTCQB or OTCQX as applicable, (c) if the Common Share are not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Shares are then reported in the “Pink Sheets” published by OTC Markets Group, Inc. (or a
similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per Common Share so reported, or (d) in all other cases, the fair market value of a Common Share as determined by an independent
appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. 

 “VWAP” means, for any date, the price determined by the first of the
following clauses that applies: (a) if the Common Shares are then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Shares for such date (or the nearest preceding date) on the Trading Market on which
the Common Shares are then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average
price of the Common Share for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Shares are not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Shares are then reported
in the “Pink Sheets” published by OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Shares so reported, or (d) in all other
cases, the fair market value of a Common Share as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and
expenses of which shall be paid by the Company. 
 Notwithstanding anything herein to the contrary, (i) on the Termination Date, this Warrant shall be
automatically exercised via cashless exercise pursuant to this Section 2(c), and (ii) so long as the Common Shares are listed on the Toronto Stock Exchange (the “TSX”), all calculations contemplated in this subsection 2(c)
shall utilize the definitions of “market price” and “VWAP” (or their equivalents) and any related definitions and related calculation concepts then contained in the TSX Company Manual. 

d) Mechanics of Exercise. 

i. Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be
transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if
the Company is then a participant in such system and either (A) there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by the Holder or (B) this Warrant is being
exercised via cashless exercise, and otherwise by physical delivery of a certificate, registered in the Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled
pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period after the
delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of
the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received
within the earlier of (i) two (2) Trading Days and (ii) the number of Trading Days comprising the Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the
Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the
VWAP of the Common Shares on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share
Delivery Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used
herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Shares as in effect on the date of delivery of
the Notice of Exercise. 
 ii. Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in
part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to purchase the unpurchased
Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 

 iii. Rescission Rights. If the Company fails to cause the Transfer
Agent to transmit to the Holder the Warrant Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. 

iv. Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon
Exercise. In addition to any other rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares in accordance with the provisions of Section 2(d)(i) above pursuant to an exercise
on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, Common Shares to deliver in
satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the
amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the Common Shares so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the
Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate
the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall be deemed rescinded) or deliver to the Holder the number of Common Shares that would have been issued had
the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common Shares having a total purchase price of $11,000 to cover a Buy-In with respect to
an attempted exercise of Common Shares with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately preceding sentence the Company shall be required to pay the Holder $1,000. The Holder
shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the amount of such loss. Nothing herein shall limit
a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver
the Common Shares upon exercise of the Warrant as required pursuant to the terms hereof. 
 v. No Fractional Shares or
Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall,
at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share. 

vi. Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any issue or
transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or names as
may be directed by the Holder; provided, however, that in the event that Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the
Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees
required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares. 

 vii. Closing of Books. The Company will not close its stockholder
books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof. 
 e)
Holder’s Exercise Limitations. The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after
giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s
Affiliates (such Persons, “Attribution Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of Common Shares beneficially
owned by the Holder and its Affiliates and Attribution Parties shall include the number of Common Shares issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of Common Shares
which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or
nonconverted portion of any other securities of the Company (including, without limitation, any other Common Shares Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the
Holder or any of its Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely
responsible for any schedules required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities
owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the
Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject
to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance
with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding Common Shares, a Holder may rely on the number of outstanding Common
Shares as reflected in (A) the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company
or the Transfer Agent setting forth the number of Common Shares outstanding. Upon the written or oral request of a Holder, the Company shall within one (1) Trading Day confirm orally and in writing to the Holder the number of Common Shares
then outstanding. In any case, the number of outstanding Common Shares shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution
Parties since the date as of which such number of outstanding Common Shares was reported. The “Beneficial Ownership Limitation” shall be [9.99/4.99%] of the number of Common Shares outstanding immediately after giving effect to the
issuance of Common Shares issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial Ownership
Limitation in no event exceeds 9.99% of the number of the Common Shares outstanding immediately after giving effect to the issuance of Common Shares upon exercise of this Warrant held by the Holder and the provisions of this Section 2(e) shall
continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The provisions of this paragraph
shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial
Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this Warrant. For greater
certainty, notwithstanding that this subsection 2(e) expressly provides that in no event shall the Beneficial Ownership Limitation exceed 9.99% of the number of the Common Shares outstanding immediately after giving effect to the issuance of Common
Shares upon exercise of this Warrant, the holder of this Warrant shall never utilize the exercise of this Warrant to cause it to acquire beneficial ownership of 10% or more of the Common Shares without prior notice to the Company and without
providing a personal information form to the TSX, if requested by the TSX, following such notice to the Company. 

 f) Call Provision. Subject to the provisions of Section 2(e) and
this Section 2(f), if, at any time after 12 months from the Initial Exercise Date, (i) the VWAP for each of 30 consecutive Trading Days (the “Measurement Period,” which 30 consecutive Trading Day period shall not have
commenced until after the Initial Exercise Date) exceeds $9.50 (subject to adjustment for forward and reverse stock splits, recapitalizations, stock dividends and the like after the Initial Exercise Date), (ii) the average daily volume for such
Measurement Period exceeds $1,000,000 per Trading Day, and (iii) the Holder is not in possession of any information that constitutes, or might constitute, material non-public information which was
provided by the Company, any of its Subsidiaries, or any of their officers, directors, employees, agents or Affiliates, then the Company may, within 1 Trading Day of the end of such Measurement Period, call for cancellation of all or any portion of
this Warrant for which a Notice of Exercise has not yet been delivered (such right, a “Call”) for consideration equal to $.001 per Warrant Share. To exercise this right, the Company must deliver to the Holder an irrevocable written
notice (a “Call Notice”), indicating therein the portion of unexercised portion of this Warrant to which such notice applies. If the conditions set forth below for such Call are satisfied from the period from the date of the Call
Notice through and including the Call Date (as defined below), then any portion of this Warrant subject to such Call Notice for which a Notice of Exercise shall not have been received by the Call Date will be cancelled at 6:30 p.m. (New York City
time) on the thirtieth Trading Day after the date the Call Notice is received by the Holder (such date and time, the “Call Date”). Any unexercised portion of this Warrant to which the Call Notice does not pertain will be unaffected
by such Call Notice. In furtherance thereof, the Company covenants and agrees that it will honor all Notices of Exercise with respect to Warrant Shares subject to a Call Notice that are tendered through 6:30 p.m. (New York City time) on the Call
Date. The parties agree that any Notice of Exercise delivered following a Call Notice which calls less than all of the Warrants shall first reduce to zero the number of Warrant Shares subject to such Call Notice prior to reducing the remaining
Warrant Shares available for purchase under this Warrant. For example, if (A) this Warrant then permits the Holder to acquire 100 Warrant Shares, (B) a Call Notice pertains to 75 Warrant Shares, and (C) prior to 6:30 p.m. (New York
City time) on the Call Date the Holder tenders a Notice of Exercise in respect of 50 Warrant Shares, then (x) on the Call Date the right under this Warrant to acquire 25 Warrant Shares will be automatically cancelled, (y) the Company, in
the time and manner required under this Warrant, will have issued and delivered to the Holder 50 Warrant Shares in respect of the exercises following receipt of the Call Notice, and (z) the Holder may, until the Termination Date, exercise this
Warrant for 25 Warrant Shares (subject to adjustment as herein provided and subject to subsequent Call Notices). Subject again to the provisions of this Section 2(f), the Company may deliver subsequent Call Notices for any portion of this
Warrant for which the Holder shall not have delivered a Notice of Exercise. Notwithstanding anything to the contrary set forth in this Warrant, the Company may not deliver a Call Notice or require the cancellation of this Warrant (and any such Call
Notice shall be void), unless, from the beginning of the Measurement Period through the Call Date, (1) the Company shall have honored in accordance with the terms of this Warrant all Notices of Exercise delivered by 6:30 p.m. (New York City
time) on the Call Date, and (2) a registration statement shall be effective as to all Warrant Shares and the prospectus thereunder available for use by the Company for the sale of all such Warrant Shares to the Holder, and (3) the Common
Stock shall be listed or quoted for trading on the Trading Market, and (4) there is a sufficient number of authorized shares of Common Stock for issuance of all Securities under the Transaction Documents, and (5) the issuance of all
Warrant Shares subject to a Call Notice shall not cause a breach of any provision of Section 2(e) herein. The Company’s right to call the Warrants under this Section 2(f) shall be exercised ratably among the Holders based on each
Holder’s initial purchase of Warrants. 
 Section 3. Certain Adjustments. 

a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock
dividend or otherwise makes a distribution or distributions on shares of its Common Shares or any other equity or equity equivalent securities payable in Common Shares (which, for avoidance of doubt, shall not include any Common Shares issued by the
Company upon exercise of this Warrant), (ii) subdivides outstanding Common Shares into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding Common Shares into a smaller number of shares, or
(iv) issues by reclassification of Common Shares any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of Common Shares (excluding treasury
shares, if any) outstanding immediately before such event and of which the denominator shall be the number 

 
of Common Shares outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price
of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall
become effective immediately after the effective date in the case of a subdivision, combination or re-classification. 

b) Reserved. 

c) Subsequent Rights Offerings. Upon the Company receiving the prior written approval of the TSX (so long as the Common
Shares are then listed on the TSX), in addition to any adjustments pursuant to Section 3(a) above, if at any time the Company grants, issues or sells any Common Shares Equivalents or rights to purchase stock, warrants, securities or other
property pro rata to the record holders of any class of Common Shares (the “Purchase Rights”), then the Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the
Holder could have acquired if the Holder had held the number of Common Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation)
immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights, or, if no such record is taken, the date as of which the record holders of Common Shares are to be determined for the grant, issue or
sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to
participate in such Purchase Right to such extent (or beneficial ownership of such Common Shares as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if
ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). For greater certainty, the Company has not applied for, nor received, the prior written approval of the TSX in respect of the matters
contemplated by this subsection 3(c). 
 d) Pro Rata Distributions. Upon the Company receiving the prior written
approval of the TSX (so long as the Common Shares are then listed on the TSX), during such time as this Warrant is outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets)
to holders of Common Shares, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement,
plan of arrangement or other similar transaction) (a “Distribution”), at any time after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that
the Holder would have participated therein if the Holder had held the number of Common Shares acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial
Ownership Limitation) immediately before the date of which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of Common Shares are to be determined for the participation in such
Distribution (provided, however, to the extent that the Holder’s right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to
participate in such Distribution to such extent (or in the beneficial ownership of any Common Shares as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until
such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership Limitation). For greater certainty, the Company has not applied for, nor received, the prior written approval of the TSX in respect of the
matters contemplated by this subsection 3(d). 
 e) Fundamental Transaction. If, at any time while this Warrant is
outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease,
license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the
Company or another Person) is completed pursuant to which holders of Common Shares are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding
Common Shares, (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Shares or any compulsory share exchange pursuant to which the Common
Shares are effectively converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business
combination (including, without limitation, a reorganization, recapitalization, spin-off or plan of arrangement) with 

 
another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding Common Shares (not including any Common Shares held by the other Person or other
Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental Transaction”), then, upon any subsequent
exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without
regard to any limitation in Section 2(e) on the exercise of this Warrant), the number of Common Shares of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the
“Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of Common Shares for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to
any limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of
Alternate Consideration issuable in respect of one share of Common Shares in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of
any different components of the Alternate Consideration. If holders of Common Shares are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the
Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the “Successor
Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and substance
reasonably satisfactory to the Holder prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of the Successor Entity evidenced by a written instrument substantially
similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent to 

 
the Common Shares acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an
exercise price which applies the exercise price hereunder to such shares of capital stock (but taking into account the relative value of the Common Shares pursuant to such Fundamental Transaction and the value of such shares of capital stock, such
number of shares of capital stock and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and
substance to the Holder. Upon the occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the
other Transaction Documents referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the
other Transaction Documents with the same effect as if such Successor Entity had been named as the Company herein. 
 f)
Calculations. All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of Common Shares deemed to be issued and
outstanding as of a given date shall be the sum of the number of Common Shares (excluding treasury shares, if any) issued and outstanding. 

g) Notice to Holder. 

i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this
Section 3, the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement
of the facts requiring such adjustment. 
 ii. Notice to Allow Exercise by Holder. If (A) the Company shall
declare a dividend (or any other distribution in whatever form) on the Common Shares, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Shares, (C) the Company shall authorize the granting
to all holders of the Common Shares rights or warrants to subscribe for or purchase any capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification
of the Common Shares, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Shares are converted into other
securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or
email to the Holder at its last facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 5 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating
(x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Shares of record to be entitled to
such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or stock exchange is expected to become effective or close, and the date as
of which it is expected that holders of the Common Shares of record shall be entitled to exchange their Common Shares for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or stock
exchange; provided that the failure to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice and provided, further that no notice shall be
required if the information is disseminated in a press release or document filed with the Securities and Exchange Commission . To the extent that any notice provided in this Warrant constitutes, or contains, material,
non-public information regarding the Company, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder
shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein. 

 Section 4. Transfer of Warrant. 

a) Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights) are
transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the
Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name
of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant
shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the Holder shall
surrender this Warrant to the Company within three (3) Trading Days of the date on which the Holder delivers an assignment form to the Company assigning this Warrant in full. The Warrant, if properly assigned in accordance herewith, may be
exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued. 
 b) New Warrants.
This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the
Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the Issue Date of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares
issuable pursuant thereto. 
 c) Warrant Register. The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for
the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 

Section 5. Miscellaneous. 

a) No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights, dividends or
other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. 

b) Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence
reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it
(which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like
tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate. 
 c) Saturdays, Sundays, Holidays,
etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business
Day. 
 d) Authorized Shares. 

 The Company covenants that, during the period the Warrant is outstanding, it
will reserve from its authorized and unissued Common Shares a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance
of this Warrant shall constitute full authority to its officers who are charged with the duty of issuing the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as
may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Shares may be listed. The Company
covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance
herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously
with such issue). 
 Except and to the extent as waived or consented to by the Holder, the Company shall not by any action,
including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder
as set forth in this Warrant against impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to
such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use
commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant. 

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is
exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 

e) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
shall be determined in accordance with the provisions of the Purchase Agreement. 
 f) Restrictions. The Holder
acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws. 

g) Nonwaiver and Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of
Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies, notwithstanding the fact that the Holder’s right to exercise this Warrant terminates on the Termination Date. If the Company
willfully and knowingly fails to comply with any provision of this Warrant or the Purchase Agreement, which results in any material damages to the Holder, the Company shall pay to the Holder such amounts as shall be sufficient to cover any costs and
expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder. 
 h) Notices. Any notice, request or other document required or permitted to be given or delivered to the
Holder by the Company shall be delivered in accordance with the notice provisions of the Purchase Agreement. 

 i) Limitation of Liability. No provision hereof, in the absence of
any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Shares
or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 
 j)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be
adequate. 
 k) Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and
obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit
of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares. 
 l)
Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder. 

m) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Warrant. 
 n) Headings. The headings used in this
Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 
 ********************

 (Signature Page Follows) 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer
thereunto duly authorized as of the date first above indicated. 
  

			
	VILLAGE FARMS INTERNATIONAL, INC.
		
	By:	 	  

		 	Name:
		 	Title:

 NOTICE OF EXERCISE 

TO: VILLAGE FARMS INTERNATIONAL, INC. 

(1) The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any. 
 (2)
Payment shall take the form of (check applicable box): 
 ☐ in lawful money of the United States; or 

☐ if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set forth in subsection
2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c). 

(3) Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below: 

 

			
	                                	 	_____________________

 The Warrant Shares shall be delivered to the following DWAC Account Number: 

 

			
	                                	 	_____________________
		
		 	_____________________
		
		 	_____________________

 (4) Accredited Investor. The undersigned is an “accredited investor” as defined in Regulation D
promulgated under the Securities Act of 1933, as amended. 
 _____________________ 

_____________________ 
 [SIGNATURE OF HOLDER] 

Name of Investing Entity: ____________________________________________________________________________________ 

Signature of Authorized Signatory of Investing Entity: ______________________________________________________________ 

Name of Authorized Signatory: ________________________________________________________________________________ 

Title of Authorized Signatory: ________________________________________________________________________________ 

Date: _____________________________________________________________________________________________________ 

 Exhibit B

ASSIGNMENT FORM 
 (To assign the foregoing
Warrant, execute this form and supply required information. Do not use this form to purchase shares.) 
 FOR VALUE RECEIVED, the
foregoing Warrant and all rights evidenced thereby are hereby assigned to 
  

			
	Name:	  	  

		  	(Please Print)
		
	Address:	  	  

		  	(Please Print)
		
	Phone Number:	  	  

		
	Email Address:	  	  

		
	Dated: _______________ __, ______	  	
		
	Holder’s Signature:______________________	  	
		
	Holder’s Address:______________________EX-10.1

 Exhibit 10.1 

EXECUTION VERSION 

VILLAGE FARMS INTERNATIONAL, INC. 

and 
 EMERALD HEALTH
THERAPEUTICS, INC. 
  
  

SHARE PURCHASE AGREEMENT 
  

 
 September 8, 2020 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE 1 INTERPRETATION
	  	 	1	 
			
	 1.1
	 	Definitions	  	 	1	 
	 1.2
	 	Gender and Number	  	 	8	 
	 1.3
	 	Certain Phrases and Calculation of Time	  	 	8	 
	 1.4
	 	Headings, etc.	  	 	8	 
	 1.5
	 	References to the Schedules and Exhibits	  	 	9	 
	 1.6
	 	Currency	  	 	9	 
	 1.7
	 	Knowledge	  	 	9	 
	 1.8
	 	Statutory References	  	 	9	 
	 1.9
	 	No Presumption	  	 	9	 
	 1.10
	 	Governing Law	  	 	9	 
		
	 ARTICLE 2 PURCHASED SHARES AND PURCHASE PRICE
	  	 	10	 
			
	 2.1
	 	Purchase and Sale	  	 	10	 
	 2.2
	 	Purchase Price Adjustment	  	 	10	 
	 2.3
	 	Closing and the Closing Date	  	 	10	 
	 2.4
	 	Closing Procedures	  	 	10	 
		
	 ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF EMERALD
	  	 	11	 
			
	 3.1
	 	Board Approval	  	 	11	 
	 3.2
	 	Corporate Power and Due Authorization of Emerald	  	 	11	 
	 3.3
	 	No Conflict	  	 	12	 
	 3.4
	 	Consents and Authorizations	  	 	12	 
	 3.5
	 	Litigation	  	 	12	 
	 3.6
	 	Bankruptcy	  	 	12	 
	 3.7
	 	Title to Purchased Shares	  	 	12	 
	 3.8
	 	No Other Agreements	  	 	13	 
		
	 ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF VILLAGE FARMS
	  	 	13	 
			
	 4.1
	 	Corporate Power and Due Authorization of Village Farms	  	 	13	 
	 4.2
	 	No Conflict	  	 	13	 
	 4.3
	 	Consents and Authorizations	  	 	14	 
	 4.4
	 	Litigation	  	 	14	 
	 4.5
	 	Bankruptcy	  	 	14	 
	 4.6
	 	Corporate Records	  	 	14	 
		
	 ARTICLE 5 COVENANTS OF THE PARTIES
	  	 	15	 
			
	 5.1
	 	Conduct of Business Prior to Closing	  	 	15	 
	 5.2
	 	Actions to Satisfy Closing Conditions	  	 	15	 
	 5.3
	 	Emerald Meeting	  	 	15	 
	 5.4
	 	Emerald Circular	  	 	16	 

  
 - i - 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	 5.5
	 	Transfer of the Purchased Shares	  	 	17	 
	 5.6
	 	Consents	  	 	18	 
	 5.7
	 	Regulatory Approvals	  	 	18	 
	 5.8
	 	Ancillary Agreements	  	 	20	 
	 5.9
	 	Notice of Certain Events	  	 	20	 
	 5.10
	 	Pre-Closing Reorganizations	  	 	20	 
		
	 ARTICLE 6 ADDITIONAL COVENANTS REGARDING
NON-SOLICITATION
	  	 	23	 
			
	 6.1
	 	Non-Solicitation	  	 	23	 
	 6.2
	 	Acquisition Proposals	  	 	24	 
		
	 ARTICLE 7 CONDITIONS PRECEDENT TO VILLAGE FARMS’ OBLIGATION TO
CLOSE
	  	 	25	 
			
	 7.1
	 	Truth and Accuracy of Representations and Warranties at Closing	  	 	25	 
	 7.2
	 	Compliance with Covenants	  	 	25	 
	 7.3
	 	Change in Law	  	 	26	 
	 7.4
	 	No Actions or Proceedings	  	 	26	 
	 7.5
	 	Shareholder Approvals	  	 	26	 
	 7.6
	 	PSF Lender Consent	  	 	26	 
	 7.7
	 	Village Farms Lender Consent	  	 	26	 
	 7.8
	 	Regulatory Approvals	  	 	26	 
	 7.9
	 	Dissent Rights	  	 	26	 
	 7.10
	 	Ancillary Agreements	  	 	26	 
	 7.11
	 	Voting and Support Agreements	  	 	27	 
	 7.12
	 	Closing Documents	  	 	27	 
		
	 ARTICLE 8 CONDITIONS PRECEDENT TO EMERALD’S OBLIGATION TO CLOSE
	  	 	27	 
			
	 8.1
	 	Truth and Accuracy of Representations and Warranties at Closing	  	 	27	 
	 8.2
	 	Compliance with Covenants	  	 	28	 
	 8.3
	 	No Actions or Proceedings	  	 	28	 
	 8.4
	 	Change in Law	  	 	28	 
	 8.5
	 	Emerald Shareholder Approval	  	 	28	 
	 8.6
	 	Regulatory Approvals	  	 	28	 
	 8.7
	 	PSF Lender Consent	  	 	28	 
	 8.8
	 	Dissent Rights	  	 	28	 
	 8.9
	 	Ancillary Agreements	  	 	29	 
	 8.10
	 	Closing Documents	  	 	29	 
		
	 ARTICLE 9 TERMINATION AND EFFECT OF TERMINATION
	  	 	29	 
			
	 9.1
	 	Termination	  	 	29	 
	 9.2
	 	Effect of Termination	  	 	30	 
	 9.3
	 	Termination Fee	  	 	31	 

  
 - ii - 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	 ARTICLE 10 INDEMNIFICATION
	  	 	32	 
			
	 10.1
	 	Indemnification by Emerald	  	 	32	 
	 10.2
	 	Indemnification by Village Farms	  	 	32	 
	 10.3
	 	Survival	  	 	33	 
	 10.4
	 	Calculation of Liability; Limitations	  	 	34	 
	 10.5
	 	Third Party Claims	  	 	34	 
	 10.6
	 	Indemnification Adjustment to Purchase Price	  	 	37	 
		
	 ARTICLE 11 GENERAL PROVISIONS
	  	 	37	 
			
	 11.1
	 	Notices	  	 	37	 
	 11.2
	 	Public Announcements	  	 	38	 
	 11.3
	 	Expenses	  	 	39	 
	 11.4
	 	Further Assurances	  	 	39	 
	 11.5
	 	Equitable Relief	  	 	39	 
	 11.6
	 	No Third-Party Beneficiaries	  	 	39	 
	 11.7
	 	Successors and Assigns	  	 	39	 
	 11.8
	 	Entire Agreement	  	 	40	 
	 11.9
	 	Amendment and Waiver	  	 	40	 
	 11.10
	 	Severability	  	 	40	 
	 11.11
	 	Counterparts	  	 	40	 

 Schedules 
  

					
	Schedule 2.1(c)(ii)	  	–	  	Form of Promissory Note
			
	Schedule 5.8(a)	  	–	  	List of Resigning Directors and Officers and Form of Resignation and Mutual Release
			
	Schedule 5.8(b)	  	–	  	Form of SHAG Termination Agreement
			
	Schedule 5.8(c)	  	–	  	Form of Non-Solicitation Agreement

  
 - iii - 

 THIS SHARE PURCHASE AGREEMENT is dated September 8, 2020 and made
among VILLAGE FARMS INTERNATIONAL, INC., a corporation formed under the laws of Canada (“Village Farms”), and EMERALD HEALTH THERAPEUTICS, INC., a corporation formed under the laws of British Columbia
(“Emerald”). 
 RECITALS 

WHEREAS Village Farms and Emerald Health Therapeutics Canada Inc. (“Emerald Canada”), a wholly-owned subsidiary of
Emerald, are the sole shareholders of Pure Sunfarms Corp., a corporation formed under the laws of the province of British Columbia (“PSF”); 

AND WHEREAS on June 6, 2017, Village Farms, Emerald, Emerald Canada and PSF entered into a shareholders agreement (the
“Shareholders Agreement”) to govern the business and affairs of PSF; 
 AND WHEREAS Village Farms wishes to purchase
from Emerald, and Emerald wishes to sell to Village Farms, 36,958,500 common shares in the capital of PSF, representing 41.3% of the issued and outstanding shares of PSF on a fully-diluted basis and all of the remaining shares of PSF not held by
Village Farms (the “Purchased Shares”), upon the terms and subject to the conditions set forth herein (the “Transaction”); 

AND WHEREAS the board of directors of Emerald has unanimously determined, after receiving financial and legal advice and following
receipt of the Fairness Opinion (as defined herein) that the Transaction is fair and in the best interests of Emerald and to recommend to the Emerald Shareholders (as defined herein) that they vote their common shares of Emerald in favour of the
Emerald Resolution (as defined herein), upon the terms and subject to the conditions set forth herein; 
 AND WHEREAS Emerald Health
Sciences Inc., Anson Funds and all members of the board of directors and senior officers of Emerald, prior to or concurrently with the execution of this Agreement, entered into Voting and Support Agreements (as defined herein); 

NOW THEREFORE in consideration of the mutual covenants and agreements contained in this Agreement and other good and valuable
consideration (the receipt and sufficiency of which are acknowledged), the Parties agree as follows: 
 ARTICLE 1 

INTERPRETATION 
  

	1.1	 Definitions 

In this Agreement, the following terms have the following meanings: 

“Acquisition Proposal” means, other than the transactions contemplated by this Agreement, any offer, proposal, inquiry or expression of
interest (written or oral) from any Person or group of Persons other than Village Farms (or any Affiliate of Village Farms or any Person acting jointly or in concert with Village Farms or any Affiliate of Village Farms) after the date of this
Agreement relating to, in each case whether in a single transaction or a series of related transactions: 

	 	(a)	 any direct or indirect sale or disposition or purchase or joint venture (or any lease, long-term supply
agreement or other arrangement having the same economic effect as a sale or disposition or purchase), in a single transaction or series of transactions, of voting or equity securities of PSF (or rights or interests therein); or

  

	 	(b)	 any plan of arrangement, merger, amalgamation, consolidation, share exchange, business combination,
reorganization, recapitalization, liquidation, dissolution, winding up, joint venture, partnership, amendment to constating documents, redemption of securities, transfer, purchase, issuance, distribution or other transaction or series of
transactions involving PSF that would have the same effect as the foregoing. 

 “Affiliate” means, as applied to any
Person, (a) any other Person directly or indirectly Controlling, Controlled by or under common Control with that Person, or (b) any other Person that owns or controls 50% or more of any class of voting equity securities (including any
equity securities issuable upon the exercise of any option or convertible security) of that Person or any of its affiliates. For greater certainty, for purposes of this Agreement, PSF (i) shall not be considered an Affiliate of Emerald, and
(ii) prior to Closing, shall not be considered an Affiliate of Village Farms (but shall be considered an Affiliate of Village Farms from and after Closing). 

“Agreement” means this share purchase agreement and the schedules and exhibits attached to it or otherwise forming part of it, as the same
may be amended, restated, replaced, supplemented or novated from time to time; and the words “Article” and “Section” followed by a number or letter mean and refer to the specified Article or Section of this share
purchase agreement. 
 “Ancillary Agreements” means, collectively, the D&O Mutual Releases, the SHAG Termination Agreement and
the Non-Solicitation Agreement. 
 “Applicable Laws” means any and all applicable (a) laws,
constitutions, treaties, statutes, codes, ordinances, orders, decrees, rules, regulations, by-laws and ordinances of any Governmental Authority, including all Cannabis Laws and Securities Laws,
(b) judicial, arbitral, administrative, ministerial, departmental or regulatory judgments, orders, decisions, rulings or awards of any Governmental Authority, and (c) policies, guidelines, notices and protocols, to the extent that they
have the force of law. 
 “Authorization” means, with respect to any Person, any order, permit, registration, approval, consent, waiver,
licence or other authorization issued, granted, given or authorized by, or made applicable under the authority of, any Governmental Authority having jurisdiction over such Person. 

“Board Recommendation” has the meaning specified in Section 5.4(b). 

“Business” means the business of PSF as currently conducted. 

“Business Day” means any day, other than a Saturday, Sunday or statutory or civic holiday in Toronto, Ontario or Vancouver, British Columbia.

  
 - 2 - 

 “Cannabis Laws” means the Cannabis Act (Canada) and any other law, statute, rule or
regulation in Canada or any other applicable jurisdiction (including any province, territory or other sub-jurisdiction) relating in any way to the production, cultivation, possession, storage, transportation,
distribution, sale or use of cannabis and related substances and products, and including all regulations, official directives, orders, judgments and decrees promulgated under any of the foregoing. 

“Change in Recommendation” has the meaning specified in Section 9.1(f). 

“Closing” means the completion of the transaction of sale contemplated in this Agreement. 

“Closing Date” means the date that is five (5) Business Days after the date on which the last of the conditions set out in
Article 7 and Article 8 has been satisfied (or, to the extent permitted, waived by the Party or Parties entitled to the benefit thereof), other than conditions with respect to actions that by their terms the Parties will take at Closing
itself, or such other date as the Parties may agree in writing. 
 “Closing Documents” means, collectively, the documents listed in
Section 7.12 to be delivered by Emerald at Closing and the documents listed in Section 8.10 to be delivered by Village Farms at Closing. 

“Consent” means any consent, approval, permit, waiver, ruling or exemption that is required from, and any notice that is required to be
provided to, any Person in connection with the transactions contemplated by this Agreement, other than any Regulatory Approval. 

“Control” (and the terms “Controlling”, “Controlled”, and “under common Control with”)
means, as applied to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of that Person, whether through ownership of voting securities, by contract or otherwise. 

“Corporate Records” means, with respect to any Person, the corporate records of such Person, including (a) all constating
documents, articles and by-laws, (b) all minutes of meetings and resolutions of shareholders and directors, and (c) the share certificate books, securities register, register of transfers and
register of directors (or equivalent). 
 “D&O Mutual Releases” has the meaning specified in Section 5.8(a). 

“Dissent Rights” means the rights of dissent exercisable by registered Emerald Shareholders in respect of the Emerald Resolution pursuant to
and in the manner set forth in Division 2 of Part 8 of the Business Corporations Act (British Columbia). 
 “Emerald” has the
meaning specified in the preamble to this Agreement. 
 “Emerald Canada” has the meaning specified in the Recitals. 

“Emerald Circular” means the notice of the Emerald Meeting and accompanying management information circular, including all schedules,
appendices and exhibits thereto, and information incorporated by reference in, such management information circular, to be sent to, among others, the Emerald Shareholders and each other Person as required by Applicable Laws in connection with the
Emerald Meeting, as amended, supplemented or otherwise modified from time to time in accordance with the terms of this Agreement. 

  
 - 3 - 

 “Emerald Fundamental Representations” has the meaning specified in Section 10.3(b).

 “Emerald Indemnified Parties” has the meaning specified in Section 10.2. 

“Emerald Meeting” means the annual and special meeting of Emerald Shareholders, including any adjournment or postponement of such meeting in
accordance with the terms of this Agreement, to be called and held in accordance with Applicable Laws and the Corporate Records of Emerald to consider and, if deemed advisable, approve the Emerald Resolution and the annual meeting business. 

“Emerald Note” means the promissory note dated March 6, 2020 issued by Emerald Canada in favour of PSF in the principal amount of
$952,237. 
 “Emerald Resolution” means the special resolution of the Emerald Shareholders approving the Transaction to be considered at
the Emerald Meeting. 
 “Emerald Shareholder” means a registered or beneficial holder of a common share of Emerald. 

“Encumbrance” means (a) any mortgage, charge, pledge, hypothec, security interest, assignment, encumbrance (statutory or otherwise),
privilege, easement, servitude, pre-emptive right or right of first refusal, ownership or title retention agreement, restrictive covenant or conditional sale agreement, and (b) any other
encumbrance of any nature or any arrangement or condition which, in substance, secures payment or performance of an obligation. 
 “Expense
Reimbursement Fee” has the meaning specified in Section 9.3(d). 
 “Fairness Opinion” means the opinion of the Financial
Advisor, delivered to the board of directors of Emerald, to the effect that, as of the date of such opinion, the Transaction is fair, from a financial point of view, to Emerald. 

“Financial Advisor” means Haywood Securities Inc. 

“Governmental Authority” means any (a) international, multinational, national, federal, provincial, territorial, state, municipal, local
or other governmental or public department, central bank, court, commission, board, tribunal, bureau or agency, domestic or foreign, including Health Canada, (b) any self-governed body with authority to regulate the activities carried out or
performed in the course of the Business and the conduct of Village Farms, Emerald or PSF, as applicable, (c) any subdivision or authority of any of the above, or (d) any quasi-governmental or private body exercising any regulatory,
expropriation or Tax Authority under or for the account of any of the above. 
 “IFRS” means Independent Financial Reporting
Standards as issued by the International Accounting Standards Board. 

  
 - 4 - 

 “Indemnified Person” has the meaning specified in Section 10.5(a). 

“Indemnifying Party” has the meaning specified in Section 10.5(a). 

“Interim Period” means the period between the entering into of this Agreement by the Parties and Closing. 

“Losses” means any and all deficiencies, damages, claims, losses, liabilities, judgments, settlements, awards, fines, costs, obligations,
Taxes, loss of value (including losses or damages calculated based on diminution of value, lost profits or a multiple of lost earnings), interest, penalties, expense or assessments of any kind, including reasonable attorney’s fees and the cost
of enforcing any right to indemnification hereunder. 
 “Mailing Deadline” means September 30, 2020. 

“Meeting Deadline” means October 30, 2020. 

“Misrepresentation” has the meaning ascribed thereto under Securities Laws. 

“Non-Solicitation Agreement” has the meaning specified in Section 5.8(c). 

“Notice” has the meaning specified in Section 11.1. 

“Order” means any decision, injunction, order, directive, ruling, subpoena, decree, judgement, award, writ or verdict entered, issued,
made or rendered by any Governmental Authority. 
 “Ordinary Course” means, with respect to an action taken by a Person, that (a) the
action is consistent in nature, scope and magnitude with the past customs, practices and procedures of such Person or its business, as the case may be, and is taken in the ordinary course of the normal day-to-day operations of such Person or its business and (b) the action is not required to be authorized by the board of directors, managers or members of such Person (or by any Person or group of
Persons exercising similar authority) and does not require any other separate or special authorization of any nature. 
 “Outside Date”
means November 30, 2020 or such later date as may be agreed to in writing by the Parties. 
 “Parties” means Village Farms and Emerald
and their respective successors and permitted assigns; and “Party” means any one of the Parties. 
 “Permitted
Encumbrances” means (a) Encumbrances for Taxes, assessments or governmental charges or levies which relate to obligations not yet due or delinquent and for which adequate reserves have been recorded in accordance with IFRS,
(b) easements, servitudes, right of way, encroachments and other minor imperfections of title, zoning, land use, development agreements, subdivision agreements, building restrictions, ordinances or other restrictions, bylaws or regulations
which do not and will not, materially adversely affect the value of any leased or owned real property of PSF affected thereby or impair the use of such real property affected thereby for the purpose for which it is used, (c) undetermined or
inchoate Encumbrances arising or potentially 

  
 - 5 - 

 
arising under statutory provisions which have not at the time been filed or registered in accordance with Applicable Laws or of which written notice has not been given in accordance with
Applicable Laws, (d) mechanics’, carriers’, workmen’s, repairmen’s, service provider’s or other like Encumbrances for sums that are not overdue, or if overdue, that are being contested in good faith, arising or incurred
in the Ordinary Course, (e) the rights of any landlord or any Person under any lease of real property occupied by such Person as tenant and Encumbrances, reservations and renewals of freehold interest in any such property having priority to any
such leases and (f) Encumbrances or title retention arrangements arising under conditional sales contracts, leases (including capital leases, those relating to equipment, vehicles or otherwise) or to secure the payments of the purchase price or
repayment of monies borrowed to pay the purchase price of any assets or property hereafter or previously acquired by such Person. 

“Person” means a natural person, partnership, limited partnership, limited liability partnership, syndicate, sole proprietorship, corporation
or company (with or without share capital), limited liability company, stock company, trust, unincorporated association, joint venture or other entity or Governmental Authority. 

“Pre-Closing Reorganization” has the meaning specified in Section 5.10(a). 

“Proceeding” means civil, criminal or administrative actions, claims, suits, inquiries, investigations, complaints, or proceedings, at
law or in equity, by any Person, or any arbitration, administrative or other proceeding by or before (or any investigation by) any court, administrative agency, arbitrator, tribunal, board, Governmental Authority or other competent authority. 

“PSF” has the meaning specified in the Recitals. 

“PSF Credit Agreement” means the second amended and restated credit agreement dated June 30, 2020 among PSF, as borrower, the Lenders
and Bank of Montreal, as administrative agent, lead arranger and sole bookrunner. 
 “PSF Lenders” means the lenders party to the PSF
Credit Agreement. 
 “Purchase Price” has the meaning specified in Section 2.1(b). 

“Purchased Shares” has the meaning specified in the Recitals. 

“Regulatory Approval” means any consent, approval, permit, waiver, ruling, or exemption that is required from, and any notice that is
required to be provided to, any Governmental Authority pursuant to any Applicable Law or the conditions of any applicable Order, in each case in connection with the transactions contemplated by this Agreement. 

“Representative” means, with respect to any Person, any officer, director, employee, representative (including any financial or other
advisor) or agent of such Person or of any of its Affiliates. 
 “Securities Authority” means the Ontario Securities Commission and any
other applicable securities commissions or securities regulatory authority of a province or territory of Canada. 

  
 - 6 - 

 “Securities Laws” means the securities Laws of each of the provinces and territories of
Canada, the policies and regulations of any stock exchange on which the applicable Party’s securities are listed and posted for trading, and all other applicable securities laws, rules, regulations, instruments and published policies
thereunder, as now in effect and as they may be promulgated or amended from time to time. 
 “SHAG Termination Agreement” has the meaning
specified in Section 5.8(b). 
 “Shareholders Agreement” has the meaning specified in the Recitals. 

“Subsidiary” means, with respect to any Person, any other Person that is Controlled, directly or indirectly, through one or more
intermediaries, by such person or, where such Person is a limited partnership, by the general partner of such Person. 
 “Tax Authority”
means any local, municipal, governmental, state, provincial, territorial, federal or other fiscal, customs or excise authority, body or officials anywhere in the world with responsibility for, and competent to impose, collect or administer, any form
of Tax. 
 “Taxes” means: (a) any and all taxes, duties, fees, excises, premiums, assessments, imposts, levies and other charges or
assessments of any kind whatsoever imposed by any Governmental Authority, whether computed on a separate, consolidated, unitary, combined or other basis, including those levied on, or measured by, or described with respect to, income, gross
receipts, profits, gains, windfalls, capital, capital stock, production, recapture, transfer, land transfer, license, gift, occupation, wealth, environment, net worth, indebtedness, surplus, sales, goods and services, harmonized sales, use,
value-added, excise, special assessment, stamp, withholding, business, franchising, real or personal property, health, employer health, payroll, workers’ compensation, employment or unemployment, severance, social services, social security,
education, utility, surtaxes, customs, import or export, and including all license and registration fees and all employment insurance, health insurance and government pension plan premiums or contributions; and (b) all interest, penalties,
fines, additions to tax or other additional amounts imposed by any Governmental Authority on or in respect of amounts of the type described in clause (a) or this clause (b). 

“Termination Fee” has the meaning specified in Section 9.3(b)(i). 

“Termination Fee Event” has the meaning specified in Section 9.3(b)(ii). 

“Third Party Claim” has the meaning specified in Section 10.5(a). 

“Transaction” means has the meaning specified in the Recitals. 

“Village Farms” has the meaning specified in the preamble to this Agreement. 

“Village Farms Credit Facilities” means collectively, (i) the term facility among Village Farms and certain Affiliates, as guarantors,
and Farm Credit Canada entered into on March 28, 2013, as amended from time to time, (ii) the operating credit facility among Village Farms and a Canadian chartered bank dated August 29, 2013, as amended from time to time, and
(iii) the loan agreement between VF Clean Energy, Inc. and a Canadian chartered bank dated July 31, 2014, as amended from time to time. 

  
 - 7 - 

 “Village Farms Fundamental Representations” has the meaning specified in
Section 10.3(c). 
 “Village Farms Indemnified Parties” has the meaning specified in Section 10.1. 

“Village Farms Lenders” means the lenders under the Village Farms Credit Facilities. 

“Voting and Support Agreement” has the meaning specified in Section 3.1. 

“Willful Breach” means a breach that is a consequence of any act undertaken by the breaching Party with the actual knowledge that the taking
of such act would, or would be reasonably expected to, cause a breach of this Agreement. 
  

	1.2	 Gender and Number 

Any reference in this Agreement to gender includes all genders and words importing the singular include the plural and vice versa. 

 

	1.3	 Certain Phrases and Calculation of Time 

 

	 	(a)	 In this Agreement (i) the words “including” and “includes” mean “including (or
includes) without limitation”, and (ii) in the computation of periods of time from a specified date to a later specified date, unless otherwise expressly stated, the word “from” means “from and including” and the words
“to” and “until” each means “to but excluding”. If the last day of any such period is not a Business Day, such period will end on the next Business Day. 

 

	 	(b)	 When calculating the period of time “within” which or “following” which any act or event is
required or permitted to be done, notice given or steps taken, the date which is the reference date in calculating such period is to be excluded from the calculation. If the last day of any such period is not a Business Day, such period will end on
the next Business Day. 

  

	 	(c)	 Any reference to a number of days shall refer to calendar days unless Business Days are specified.

  

	1.4	 Headings, etc. 

The inclusion of a table of contents, the division of this Agreement into Articles and Sections and the insertion of headings are for convenient reference only
and are not to affect or be used in the construction or interpretation of this Agreement. 

  
 - 8 - 

	1.5	 References to the Schedules and Exhibits 

Unless otherwise indicated, all references herein to sections, articles, exhibits or schedules shall be deemed to refer to Sections, Articles, Exhibits or
Schedules of or to this Agreement, as applicable. 
  

	1.6	 Currency 

All monetary amounts in this Agreement, unless otherwise specifically indicated, are stated in Canadian dollar currency. 

 

	1.7	 Knowledge 

  

	 	(a)	 Where any representation or warranty in this Agreement is qualified by reference “to the knowledge of
Emerald” or “of which Emerald becomes aware”, it is deemed to refer to the actual knowledge of Avtar Dhillon, Jim Heppell, Riaz Bandali and Jenn Hepburn after reasonable inquiry. 

 

	 	(b)	 Where any representation or warranty in this Agreement is qualified by reference “to the knowledge of
Village Farms” or “of which Village Farms becomes aware”, it is deemed to refer to the actual knowledge of Michael DiGiglio and Stephen Ruffini, after reasonable inquiry. 

 

	1.8	 Statutory References 

Unless otherwise specifically indicated, any reference to a statute in this Agreement refers to that statute and to the regulations made under that statute.

  

	1.9	 No Presumption 

The Parties and their counsel have participated jointly in the negotiation and drafting of this Agreement and the Ancillary Agreements. If an ambiguity or a
question of intent or interpretation arises, this Agreement and each of the Ancillary Agreements are to be construed as if drafted jointly by the Parties. No presumption or burden of proof should arise in favour of any Party by virtue of the
authorship of any provision of this Agreement or any of the Ancillary Agreements. 
  

	1.10	 Governing Law 

 

	 	(a)	 This Agreement is governed by and is to be interpreted, construed and enforced in accordance with the laws of
the province of Ontario and the federal laws of Canada applicable therein, without regard to conflict of law principles. 

  

	 	(b)	 Each of the Parties irrevocably attorns and submits to the exclusive jurisdiction of the Ontario courts
situated in the City of Toronto in any action or proceeding arising out of or relating to this Agreement. Each of the Parties waives objection to the venue of any action or proceeding in such court or any argument that such court provides an
inconvenient forum. 

  
 - 9 - 

 ARTICLE 2 

PURCHASED SHARES AND PURCHASE PRICE 
  

	2.1	 Purchase and Sale 

 

	 	(a)	 Subject to the terms and conditions of this Agreement, Village Farms agrees to purchase at Closing, and Emerald
agrees to cause Emerald Canada to sell to Village Farms at Closing, the Purchased Shares, free and clear of all Encumbrances. 

  

	 	(b)	 Subject to Section 2.2, the purchase price payable by Village Farms to Emerald for the Purchased Shares
shall be $79,900,000 (the “Purchase Price”). 

  

	 	(c)	 At Closing, the Purchase Price for the Purchased Shares shall be satisfied in full as follows:

  

	 	(i)	 Village Farms shall pay an amount in cash equal to no less than $60,000,000, and shall use commercially
reasonable efforts to pay an amount in cash equal to the full Purchase Price, via wire transfer of immediately available funds to an account specified by Emerald; and 

 

	 	(ii)	 to the extent that the amount paid pursuant to Section 2.1(c)(i) is less than the full Purchase Price,
Village Farms shall deliver to Emerald a promissory note substantially in the form of Schedule 2.1(c)(ii) in an amount equal to the difference between the Purchase Price and such amount paid pursuant to Section 2.1(c)(i). 

 

	2.2	 Purchase Price Adjustment 

The Purchase Price shall be increased by the principal amount of the Emerald Note, plus any accrued and unpaid interest thereon, to the extent that the
obligation to repay the Emerald Note has not been assumed by Village Farms at Closing. 
  

	2.3	 Closing and the Closing Date 

Closing shall take place remotely via the exchange of documents and signatures at 8:00 a.m. (Toronto time) on the Closing Date or at such other place, on such
other date and at such other time as may be agreed upon in writing by the Parties. 
  

	2.4	 Closing Procedures 

At Closing, subject to satisfaction or waiver by the relevant Party of the conditions of Closing, Emerald shall deliver or cause to be delivered to Village
Farms share certificates representing the Purchased Shares endorsed in blank for transfer or accompanied by irrevocable share transfer powers of attorney executed in blank, in either case, by the holders of record or a valid power of attorney. 

  
 - 10 - 

 ARTICLE 3 

REPRESENTATIONS AND WARRANTIES OF EMERALD 

Emerald represents and warrants to Village Farms as follows, and Emerald acknowledges that Village Farms is relying upon the accuracy of the following
representations and warranties in entering into this Agreement and purchasing the Purchased Shares: 
  

	3.1	 Board Approval 

The board of directors of Emerald, after receiving financial and legal advice, has unanimously determined that the Transaction is in the best interests of
Emerald and has resolved to unanimously recommend to the Emerald Shareholders that they vote their common shares in favour of the Emerald Resolution at the Emerald Meeting and such approvals and resolutions have not been withdrawn, amended or
rescinded. The board of directors of Emerald has received the verbal Fairness Opinion and such verbal Fairness Opinion has not been withdrawn, amended, modified or rescinded. Prior to the Mailing Deadline, the board of directors of Emerald will
receive the written Fairness Opinion (a copy of which will be provided to Village Farms prior to the Mailing Deadline) and such written Fairness Opinion shall not be withdrawn, amended, modified or rescinded. The board of directors of Emerald has
approved the Transaction and the execution and performance of this Agreement. Each of the directors and senior officers of Emerald have entered into a voting and support agreement (each, a “Voting and Support Agreement”) pursuant to
which he or she will vote all the common shares of Emerald held by him or her in favour of the Emerald Resolution in accordance with the terms thereof and will, accordingly, so represent in the Emerald Circular. 

 

	3.2	 Corporate Power and Due Authorization of Emerald 

Emerald has been duly incorporated and organized and is validly existing and in good standing under the laws of the province of British Columbia. Emerald has
the corporate power, authority and capacity to enter into, and to perform its obligations under, this Agreement and each of the Ancillary Agreements to which it is a party. This Agreement has been, and the Ancillary Agreements have been, duly
authorized by Emerald. This Agreement has been duly executed and delivered by Emerald and constitutes, and each of the Ancillary Agreements to which Emerald is a party when executed by Emerald will constitute, a legal, valid and binding obligation
of Emerald, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to creditors’ rights generally and to the applicability of
equitable principles. No other corporate proceedings on the part of Emerald or its Affiliates are necessary to authorize the consummation of the transactions contemplated by this Agreement and each of the Ancillary Agreements to which Emerald is a
party other than the approval of the board of directors of Emerald of the Emerald Circular and the approval by the Emerald Shareholders of the Emerald Resolution. 

  
 - 11 - 

	3.3	 No Conflict 

None of the entering into of this Agreement or any Ancillary Agreement, the sale of the Purchased Shares or the performance by Emerald of any of its
obligations under this Agreement or any Ancillary Agreement shall (i) contravene, breach or result in any default under the articles, by-laws, constating documents or other organizational documents of Emerald or Emerald Canada,
(ii) conflict with, constitute a breach or violation of, or a default under, or give rise to any Encumbrance (other than Permitted Encumbrances) or any acceleration of remedies, penalty, increase or decrease in benefit payable or right of
termination, unilateral modification, suspension, revocation or cancellation under, or forfeiture of, or result in or constitute a circumstance which, with or without notice or lapse of time or both would constitute any of the foregoing under, as
applicable, any Authorization or any agreement, contract or instrument of Emerald or Emerald Canada or any agreement, contract or instrument to which any assets of Emerald or Emerald Canada are subject, or (iii) violate, conflict with or result
in the breach of any Applicable Law or any order, writ, injunction, subpoena, ruling, stipulation, decision, determination, award or decree issued by any court or Governmental Authority applicable to Emerald or Emerald Canada or any of their
respective assets or properties. 
  

	3.4	 Consents and Authorizations 

No Regulatory Approval or Consent is required to be obtained or made by Emerald or Emerald Canada in connection with the execution, delivery or performance of
this Agreement or any Ancillary Agreement, except (a) the Consent from the PSF Lenders pursuant to the PSF Credit Agreement to the transfer of the Purchased Shares; (b) Consent from PSF to the assumption by Village Farms of Emerald
Canada’s obligations under the Emerald Note; (c) Regulatory Approval from the TSX Venture Exchange to the transfer of the Purchased Shares; (d) Consents already obtained pursuant to the Voting and Support Agreements; and (e) any
Regulatory Approval or Consent where failure to obtain such Regulatory Approval or Consent would not be material to PSF. 
  

	3.5	 Litigation 

There are no Proceedings current or pending or, to the knowledge of Emerald, threatened against Emerald or Emerald Canada or their respective businesses
enjoining, restricting or prohibiting any of the transactions contemplated herein; no event has occurred or circumstance exists which may reasonably (with or without the passage of time) give rise to or serve as a basis for the commencement of any
such Proceeding by, against or affecting Emerald or Emerald Canada or their respective businesses; and none of Emerald or Emerald Canada have entered into any Proceeding, settlement agreement or other arrangement that challenges, or that may
reasonably be expected to have the effect of preventing, delaying, making illegal or otherwise materially interfering with, any of the transactions contemplated herein. 
  

	3.6	 Bankruptcy 

There are no bankruptcy, reorganization or arrangement proceedings pending against, being contemplated by or, to the knowledge of Emerald, threatened against
Emerald or Emerald Canada. 
  

	3.7	 Title to Purchased Shares 

The Purchased Shares are owned by Emerald Canada as the registered and beneficial owner thereof, with good and valid title thereto, free and clear of all
Encumbrances other than transfer restrictions under Securities Laws and the Shareholders Agreement. Upon completion of the transactions contemplated by this Agreement, Emerald will cause Emerald Canada to transfer to Village Farms legal and
beneficial and good and valid title to each of the Purchased Shares, free and clear of all Encumbrances. 

  
 - 12 - 

	3.8	 No Other Agreements 

Except for the rights of Village Farms under this Agreement and the shareholders’ rights under the Shareholders Agreement, no Person has any written or
oral agreement, option, warrant, understanding or commitment or any right or privilege (whether by law, contractual or otherwise) capable of becoming such for: 
  

	 	(a)	 the purchase or acquisition from Emerald Canada of any of the Purchased Shares; or 

 

	 	(b)	 the purchase, subscription, allotment or issuance of any of the unissued shares or other securities of PSF.

 ARTICLE 4 

REPRESENTATIONS AND WARRANTIES OF VILLAGE FARMS 

Village Farms represents and warrants to Emerald as follows, and Village Farms acknowledges that Emerald is relying upon the accuracy of the following
representations and warranties in entering into this Agreement and selling the Purchased Shares: 
  

	4.1	 Corporate Power and Due Authorization of Village Farms 

Village Farms has been duly incorporated and organized and is validly existing and in good standing under the laws of Canada. Village Farms has the corporate
power, authority and capacity to enter into, and to perform its obligations under, this Agreement and each of the Ancillary Agreements to which it is a party. This Agreement has been, and the Ancillary Agreements have been, duly authorized by
Village Farms. This Agreement has been duly executed and delivered by Village Farms and constitutes, and each of the Ancillary Agreements to which Village Farms is a party when executed by Village Farms will constitute, a legal, valid and binding
obligation of Village Farms, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws now or hereafter in effect relating to creditors’ rights generally and to the
applicability of equitable principles. No other corporate proceedings on the part of Village Farms or its Affiliates are necessary to authorize the consummation of the transactions contemplated by this Agreement and each of the Ancillary Agreements
to which Village Farms is a party. 
  

	4.2	 No Conflict 

Assuming the Consent in Section 4.3(c) is obtained, none of the entering into of this Agreement or any Ancillary Agreement, the purchase of the Purchased
Shares or the performance by Village Farms of any of its obligations under this Agreement or any Ancillary Agreement shall (i) contravene, breach or result in any default under the articles, by-laws,
constating documents or other organizational documents of Village Farms, (ii) conflict with, constitute a breach or violation of, or a default under, or give rise to any Encumbrance (other than Permitted Encumbrances) or any acceleration of
remedies, penalty, increase or decrease in benefit payable or right of 

  
 - 13 - 

 
termination, unilateral modification, suspension, revocation or cancellation under, or forfeiture of, or result in or constitute a circumstance which, with or without notice or lapse of time or
both would constitute any of the foregoing under, as applicable, any Authorization or any agreement, contract or instrument of Village Farms or any agreement, contract or instrument to which any assets of Village Farms are subject, or
(iii) violate, conflict with or result in the breach of any Applicable Law or any order, writ, injunction, subpoena, ruling, stipulation, decision, determination, award or decree issued by any court or Governmental Authority applicable to
Village Farms or any of its assets or properties. 
  

	4.3	 Consents and Authorizations 

No Regulatory Approval or Consent is required to be obtained or made by Village Farms in connection with the execution, delivery or performance of this
Agreement or any Ancillary Agreement except (a) the Consent from the PSF Lenders pursuant to the PSF Credit Agreement to the transfer of the Purchased Shares; (b) the Consent from PSF to the assumption by Village Farms of Emerald
Canada’s obligations under the Emerald Note; (c) the Consent from the Village Farms Lenders pursuant to the terms of the Village Farms Credit Facilities to the Transaction; and (d) where failure to obtain such Regulatory Approval or
Consent would not be material to PSF. 
  

	4.4	 Litigation 

There are no Proceedings current or pending or, to the knowledge of Village Farms, threatened against Village Farms or its business enjoining, restricting or
prohibiting any of the transactions contemplated herein; no event has occurred or circumstance exists which may reasonably (with or without the passage of time) give rise to or serve as a basis for the commencement of any such Proceeding by, against
or affecting Village Farms or its business; and Village Farms has not entered into any Proceeding, settlement agreement or other arrangement that challenges, or that may reasonably be expected to have the effect of preventing, delaying, making
illegal or otherwise materially interfering with, any of the transactions contemplated herein. Village Farms is not subject to or in breach of any Order and, to the Knowledge of Village Farms, Village Farms has never been in breach of any Order.

  

	4.5	 Bankruptcy 

There are no bankruptcy, reorganization or arrangement proceedings pending against, being contemplated by, or to the knowledge of Village Farms, threatened
against Village Farms. 
  

	4.6	 Corporate Records 

All Corporate Records of Village Farms have been properly prepared and filed, accurately kept, and are true and complete in each case in all material respects.
To the knowledge of Village Farms, it has not received any notice or allegation that any of the Corporate Records is incorrect or incomplete or should be rectified. 

  
 - 14 - 

 ARTICLE 5 

COVENANTS OF THE PARTIES 
  

	5.1	 Conduct of Business Prior to Closing 

During the Interim Period, each of the Parties agrees to co-operate in good faith with the other Party in managing and
funding the day to day operations of PSF, including funding any capital contributions and securing any debt financing arrangements on behalf of PSF, all in accordance with the terms of the Shareholders Agreement. 

 

	5.2	 Actions to Satisfy Closing Conditions 

 

	 	(a)	 Emerald shall take all such reasonable actions as are within its power to control and shall use
commercially reasonable efforts to cause other actions to be taken which are not within its power to control, so as to ensure compliance with all of the conditions set forth in Article 7, including ensuring that during the Interim Period and at
Closing, there is no breach of any of its representations and warranties. 

  

	 	(b)	 Village Farms shall take all such reasonable actions as are within its power to control and shall use
commercially reasonable efforts to cause other actions to be taken which are not within its power to control, so as to ensure compliance with all of the conditions set forth in Article 8, including ensuring that during the Interim Period and at
Closing, there is no breach of any of its representations and warranties. 

  

	5.3	 Emerald Meeting 

Emerald shall: 
  

	 	(a)	 use commercially reasonable efforts to convene and conduct the Emerald Meeting in accordance with Applicable
Laws and its Corporate Records as soon as reasonably practicable and, in any event, on or before the Meeting Deadline, including by virtual means, and not adjourn, postpone or cancel (or propose the adjournment, postponement or cancellation of) the
Emerald Meeting without the prior written consent of Village Farms, except (i) in the case of a postponement or adjournment, if requested by Village Farms, for quorum purposes or for the purpose of obtaining the approval of Emerald Shareholders
of the Emerald Resolution, or (ii) as required by Applicable Laws or by a Governmental Authority; 

  

	 	(b)	 not, except for annual meeting business, propose or submit for consideration at the Emerald Meeting any
business other than the Emerald Resolution without Village Farms’ prior written consent, such consent not to be unreasonably withheld, conditioned or delayed; 

 

	 	(c)	 solicit proxies in favour of the approval of the Emerald Resolution and against any resolution submitted by any
Emerald Shareholder that is inconsistent with the Emerald Resolution; 

  
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	 	(d)	 provide Village Farms with copies of or access to information regarding the Emerald Meeting that has been
provided to Emerald generated by any proxy solicitation services firm retained by Emerald, as requested from time to time by Village Farms; 

  

	 	(e)	 consult with Village Farms in fixing and publishing a record date for the purposes of determining Emerald
Shareholders entitled to receive notice of and vote at the Emerald Meeting (which record date shall be no later than September 14, 2020); 

  

	 	(f)	 consult with Village Farms in fixing the date of the Emerald Meeting, give notice to Village Farms of the
Emerald Meeting and allow the Representatives of Village Farms and its legal counsel to attend the Emerald Meeting; 

  

	 	(g)	 not change the record date for the Emerald Shareholders entitled to vote at the Emerald Meeting in connection
with any adjournment or postponement of the Emerald Meeting unless required by Applicable Laws; 

  

	 	(h)	 promptly advise Village Farms, at such times as Village Farms may reasonably request and at least on a daily
basis on each of the last ten (10) Business Days prior to the Emerald Meeting, as to the aggregate tally of the proxies received by Emerald in respect of the Emerald Resolution; 

 

	 	(i)	 promptly advise Village Farms of any communication (written or oral) from any Emerald Shareholder in opposition
to the Transaction and/or any purported exercise or withdrawal of Dissent Rights by Emerald Shareholders and provide Village Farms with an opportunity to review and comment upon any written communications sent by or on behalf of Emerald to any such
Emerald Shareholder and to participate in any discussions, negotiations or proceedings with or including any such persons; and 

  

	 	(j)	 not, prior to Closing, settle or compromise or agree to settle or compromise any purported exercise of Dissent
Rights by Emerald Shareholders, or acknowledge the valid exercise of or make any payments with respect to any Dissent Right, without the prior written consent of Village Farms, not to be unreasonably withheld, conditioned or delayed, provided that
nothing in this Section 5.3(j) shall prevent Emerald from complying with its obligations under section 243 of the Business Corporations Act (British Columbia). 

 

	5.4	 Emerald Circular 

 

	 	(a)	 Promptly after the execution of this Agreement and in any event prior to the Mailing Deadline, Emerald shall
use commercially reasonable efforts to promptly prepare and complete, in consultation with Village Farms, the Emerald Circular together with any other documents required by Applicable Laws in connection with the Emerald Meeting and the Transaction,
and Emerald shall use commercially reasonable efforts to promptly cause the Emerald Circular and such other documents to be filed with the applicable Securities Authorities and sent to each Emerald Shareholder and other Persons as required by
Applicable Laws, in each case so as to permit the Emerald Meeting to be held as specified in Section 5.3(a). 

  
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	 	(b)	 Emerald shall ensure that the Emerald Circular complies in all material respects with Applicable Laws and does
not contain any Misrepresentation. Without limiting the generality of the foregoing, the Emerald Circular will include: (a) a statement that the board of directors of Emerald, after consulting with outside legal counsel and financial advisors,
has unanimously determined that the Transaction is in the best interests of Emerald and Emerald Shareholders and unanimously recommends that Emerald Shareholders vote their common shares of Emerald in favour of the Emerald Resolution (the
“Board Recommendation”); (b) a copy of the Fairness Opinion; and (c) a statement that each director and executive officer of Emerald intends to vote all of such person’s common shares of Emerald in favour of the Emerald
Resolution in accordance with the terms of the Voting and Support Agreements. 

  

	 	(c)	 Emerald shall give Village Farms and its legal counsel a reasonable opportunity to review and comment on drafts
of the Emerald Circular and other related documents, and shall give reasonable consideration to any comments made by Village Farms and its counsel, and agrees that all information relating solely to Village Farms and/or its affiliates included in
the Emerald Circular must be in a form and content satisfactory to Village Farms, acting reasonably. Emerald shall provide Village Farms with a final copy of the Emerald Circular prior to mailing to Emerald Shareholders. 

 

	 	(d)	 Village Farms shall provide to Emerald in writing all necessary information concerning Village Farms and its
Affiliates as may reasonably be required by Applicable Laws to be included by Emerald in the Emerald Circular or other related documents and shall ensure that any information so provided to Village Farms does not contain, or cause the Emerald
Circular to contain, any Misrepresentation. 

  

	 	(e)	 Each Party shall promptly notify the other Party if it becomes aware that the Emerald Circular contains a
Misrepresentation, or otherwise requires an amendment or supplement. The Parties shall cooperate in the preparation of any such amendment or supplement as required or appropriate, and Emerald shall promptly mail, file or otherwise publicly
disseminate any such amendment or supplement to Emerald Shareholders and, if required by Applicable Laws, file the same with the Securities Authority or any other Governmental Authority as required. 

 

	5.5	 Transfer of the Purchased Shares 

At or prior to Closing, (i) Emerald and Village Farms shall cause PSF to take all necessary corporate action for purposes of approving and
authorizing the transfer of Purchased Shares to Village Farms at Closing, and (ii) Emerald shall cause Emerald Canada to take all necessary corporate action for purposes of approving and authorizing the transfer of the Purchased Shares to
Village Farms at Closing. 

  
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	5.6	 Consents 

Prior to Closing: 
  

	 	(a)	 Emerald shall use its commercially reasonable efforts to obtain all Consents that are required to be obtained
by Emerald, including Consents required from the PSF Lenders. Emerald shall bear its own costs and expenses and all fees associated with obtaining such Consents. Village Farms shall use its commercially reasonable efforts to furnish to Emerald such
information and assistance as Emerald may reasonably request in connection therewith. 

  

	 	(b)	 Village Farms shall use its commercially reasonable efforts to obtain all Consents that are required to be
obtained by Village Farms or any Affiliate thereof, including Consents required from the PSF Lenders. Village Farms shall bear its own costs and expenses and all fees associated with obtaining such Consents. Emerald shall use its commercially
reasonable efforts to furnish to Village Farms such information and assistance as Village Farms may reasonably request in connection therewith. 

  

	 	(c)	 Each of Emerald and Village Farms shall cause PSF to use its commercially reasonable efforts to obtain all
Consents that are required to be obtained by PSF, including Consents required from the PSF Lenders, and shall cause PSF to consent to the assumption by Village Farms of Emerald Canada’s obligations under the Emerald Note. PSF shall bear all
costs and expenses and all fees associated with obtaining such Consents. Each of Emerald and Village Farms shall use its commercially reasonable efforts to furnish such information and assistance as PSF may reasonably request in connection
therewith. 

  

	5.7	 Regulatory Approvals 

 

	 	(a)	 As soon as reasonably practicable following the date hereof and within the time limits prescribed by Applicable
Law, Emerald and Village Farms shall make, and shall cause PSF to make, such applications to obtain all Regulatory Approvals and thereafter shall use commercially reasonable efforts to obtain all Regulatory Approvals as promptly as practicable, and
in any event at or before the Outside Date, and in doing so will keep each other reasonably informed as to the status of those proceedings. 

  

	 	(b)	 Emerald and Village Farms shall, and shall cause PSF to, furnish to the other such information and reasonable
assistance as the other may reasonably request in order to obtain the Regulatory Approvals. Subject to Applicable Law, all requests and enquiries from any Governmental Authority in relation to such Regulatory Approvals shall be addressed by Emerald
and Village Farms in consultation with each other. 

  

  
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	 	(c)	 With respect to obtaining the Regulatory Approvals, subject to Applicable Law, each of Emerald and Village
Farms shall, and shall cause PSF to: 

  

	 	(i)	 promptly notify such other Party of material written communications it or any of its Affiliates receives of any
nature from any applicable Governmental Authority relating to the transactions contemplated by this Agreement and provide such other Party with copies thereof, except to the extent of competitively sensitive information, which competitively
sensitive information will be provided only to the external legal counsel or external expert of such other Party and shall not be shared by such counsel or expert with any other Person; 

 

	 	(ii)	 respond as promptly as reasonably practicable to any inquiries or requests received from any applicable
Governmental Authority or any other Person in connection with this Agreement or the transactions contemplated hereby; 

  

	 	(iii)	 reasonably cooperate with such other Party in connection with any filing under any Applicable Law and in
connection with resolving any investigation or other inquiry concerning the transactions contemplated by this Agreement initiated by any Governmental Authority; 

 

	 	(iv)	 to the extent permitted under Applicable Law and the applicable Governmental Authority, permit such other Party
to review in advance, and consider in good faith any comments reasonably proposed by the other Party in connection with, any proposed written communications of any nature with any applicable Governmental Authority relating to the transactions
contemplated by this Agreement, and provide such other Party with final copies thereof, except to the extent of competitively sensitive information, which competitively sensitive information will be provided only to the external legal counsel or
external expert of such other Party and shall not be shared by such counsel or expert with any other Person; and 

  

	 	(v)	 to the extent reasonably practicable, not participate in any substantive meeting, hearing or discussion
(whether in person, by telephone or otherwise) with any applicable Governmental Authority (other than (i) for routine or ministerial matters or (ii) communications by such other Party or any of its Affiliates with applicable Governmental
Authorities in its jurisdiction of domicile) in respect of the transactions contemplated by this Agreement unless it consults with such other Party in advance and gives such other Party the opportunity to attend and participate thereat (except where
any applicable Governmental Authority expressly requests that such other Party should not be present at the meeting, hearing or discussion or part or parts of the meeting, hearing or discussion, or except where competitively sensitive information
may be discussed). 

  

	 	(d)	 The Parties and PSF shall bear their own costs and expenses and all fees associated with obtaining the
Regulatory Approvals. 

  
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	5.8	 Ancillary Agreements 

At Closing, 
  

	 	(a)	 Village Farms and Emerald shall cause PSF to enter into a written resignation and mutual release substantially
in the form set forth in Schedule 5.8(a) with each director and officer of Emerald listed in Schedule 5.8(a) (collectively, the “D&O Mutual Releases”); 

 

	 	(b)	 Village Farms and Emerald shall enter into, and each shall cause PSF to enter into and Emerald shall cause
Emerald Canada to enter into, a written termination of the Shareholders Agreement in the form set forth in Schedule 5.8(b) (the “SHAG Termination Agreement”); and 

 

	 	(c)	 Village Farms and Emerald shall enter into a non-solicitation agreement
in the form set forth in Schedule 5.8(c) (the “Non-Solicitation Agreement”). 

  

	5.9	 Notice of Certain Events 

During the Interim Period, Emerald shall promptly notify Village Farms in writing of (i) any event, occurrence, change, circumstance, effect or state of
facts or knowledge of information that, when considered individually or in the aggregate (A) could reasonably be expected to cause or constitute a material breach of or inaccuracy in any representation or warranty made by Emerald herein
becoming untrue or incorrect or a breach by Emerald of, or a failure by Emerald to perform, any of its covenants set forth herein, or (B) could reasonably be expected to cause any condition set forth in Article 7 not to be satisfied prior
to the Outside Date, (ii) any Proceeding commenced or threatened relating to or involving Emerald or any of its Affiliates with respect to this Agreement or the transactions contemplated by this Agreement, in each case, of which Emerald becomes
aware prior to Closing, (iii) any notice from any Person alleging that the Consent of such person is or may be required in connection with the transactions contemplated by this Agreement, or (iv) any notice or other communication from any
Governmental Authority in connection with the transactions contemplated by this Agreement. No notification to Village Farms made pursuant to this Section 5.9 shall have the effect of satisfying any condition in Article 7, nor shall any
such notification have any effect for the purposes of determining the right of any Village Farms Indemnified Party to bring a claim in respect of this Agreement. 
  

	5.10	 Pre-Closing Reorganizations 

 

	 	(a)	 The Parties will and will cause PSF to use commercially reasonable efforts to effect such steps or transactions
(each, a “Pre-Closing Reorganization”) as Emerald may reasonably request in order to effect the Transaction in a more tax-effective manner; provided,
however, such Pre-Closing Reorganization shall not occur unless all elements of such Pre-Closing Reorganization shall, in the opinion of Village Farms, acting
reasonably, 

  
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	 	(i)	 not impede, delay or prevent the consummation of the Transaction (including by giving rise to litigation to or
by third parties) or the ability of Village Farms to obtain or maintain any financing required by it in connection with the Transaction and the transactions contemplated by this Agreement; 

 

	 	(ii)	 be effective no earlier than immediately prior to Closing on the Closing Date; 

 

	 	(iii)	 not require Village Farms or Emerald to obtain the approval of their respective securityholders;

  

	 	(iv)	 not unreasonably interfere in the business or operations of Village Farms or PSF prior to the Closing;

  

	 	(v)	 not require Village Farms or PSF to contravene any applicable Laws, their respective organizational documents
or any agreement, contract or instrument to which they are party; 

  

	 	(vi)	 not result in any Taxes being imposed on, or any adverse Tax or other consequences to, Village Farms or PSF and
for greater certainty and without limitation, adverse Tax or other consequence includes any Tax or other consequence that would not have arisen but for the Pre-Closing Reorganization; 

 

	 	(vii)	 not require any filings with, notifications to or approvals of any Governmental Authority;

  

	 	(viii)	 not require a director, officer, employee or agent of PSF or Village Farms to, in connection with a Pre-Closing Reorganization, take any action in any capacity other than as a director, officer, employee or agent of PSF or Village Farms, as the case may be; 

 

	 	(ix)	 not result in the withdrawal or material modification of the Fairness Opinion; 

 

	 	(x)	 not result in any material adverse accounting impact on Village Farms or PSF; 

 

	 	(xi)	 not result in a default or acceleration under the PSF Credit Agreement or Village Farms Credit Facilities, or a
consent requirement under the Village Farms Credit Facilities; 

  

	 	(xii)	 not become effective unless the Parties will have confirmed in writing the satisfaction or waiver of all
conditions in their favour set forth in Article 7 and Article 8 and will have confirmed in writing that they are prepared to promptly and without condition proceed with the Transaction; and 

 

	 	(xiii)	 not otherwise prejudice PSF or Village Farms in any material respect. 

  
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	 	(b)	 Except as set forth in Section 5.10(a) and subject to Section 5.10(e), the Parties will use
commercially reasonable efforts to obtain all necessary consents, approvals or waivers from any persons to effect each Pre-Closing Reorganization. 

 

	 	(c)	 Any Pre-Closing Reorganization shall not be considered in determining
whether a representation, warranty or covenant of any Party has been breached or whether a condition precedent to the Transaction has been satisfied. 

  

	 	(d)	 Emerald must provide written notice to Village Farms of any proposed
Pre-Closing Reorganization, together with draft copies of all documents necessary to implement the Pre-Closing Reorganization, at least twenty (20) Business Days
prior to the date of the Emerald Meeting in order to provide Village Farms and PSF and their respective advisors with a reasonable opportunity to review and comment on such documents. Emerald shall give reasonable consideration to any comments made
by Village Farms and PSF and their respective advisors and agrees that the Pre-Closing Reorganization shall not proceed unless all documents are in a form and content satisfactory to Village Farms and PSF,
acting reasonably. Emerald agrees that Village Farms and PSF shall not be responsible for preparing any documentation necessary to give effect to such Pre-Closing Reorganization. 

 

	 	(e)	 Emerald shall upon request by Village Farms advance all reasonable out-of-pocket expenses incurred by Village Farms or PSF in connection with any actions taken by such parties or, promptly upon request by Village Farms, reimburse Village Farms and PSF for all reasonable fees
and expenses (including any professional fees and expenses) and Taxes incurred by Village Farms and PSF in effecting any Pre-Closing Reorganization. For greater certainty, Village Farms will not be liable for
the failure of Emerald to benefit from any anticipated Tax efficiency as a result of a Pre-Closing Reorganization. 

  

	 	(f)	 Emerald shall indemnify Village Farms and PSF and their respective Representatives for any and all Taxes,
liabilities, losses, loss of opportunity, damages, claims, costs, expenses (including any professional fees and expenses), interest awards, judgments and penalties suffered or incurred by any of them in connection with or as a result of their co-operation or assistance with or participation in any Pre-Closing Reorganization or in the reversing or unwinding of any Pre-Closing
Reorganization in the event the Transaction does not proceed. For greater certainty, Village Farms and PSF shall have no liability arising as a result of, or the failure of Emerald to realize any benefit from, any
Pre-Closing Reorganization. For greater certainty, Article 10 shall not apply to this Section 5.10. The indemnification and expense reimbursement and advancement provisions of this Section 5.10 shall
survive the consummation of the Transaction and are intended to be for the benefit of, and shall be enforceable not only by Village Farms but also by PSF and each of the Representatives of Village Farms and PSF and their respective heirs, executors,
administrators, and personal representatives and shall be binding on Emerald and its successors and assigns and, for such purpose, Emerald confirms that it is acting as agent and trustees on behalf of such Persons. 

  
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 ARTICLE 6 

ADDITIONAL COVENANTS REGARDING NON-SOLICITATION 

 

	6.1	 Non-Solicitation 

 

	 	(a)	 Emerald shall not, and shall cause its Affiliates not to, directly or indirectly, through any of its or its
Affiliates’ Representatives and shall not permit any Person to: 

  

	 	(i)	 solicit, assist, initiate, encourage or otherwise facilitate (including by way of furnishing or providing
copies of, access to, or disclosure of, any confidential information, properties, facilities, books or records relating to PSF or entering into any form of agreement, arrangement or commitment) any inquiry, proposal or offer that constitutes or may
reasonably be expected to constitute or lead to an Acquisition Proposal; 

  

	 	(ii)	 enter into or otherwise engage or participate in any discussions or negotiations with any Person regarding any
inquiry, proposal or offer that constitutes or may reasonably be expected to constitute or lead to an Acquisition Proposal, other than with Village Farms and its Affiliates; 

 

	 	(iii)	 make a Change in Recommendation; 

 

	 	(iv)	 make any public announcement or take any other action inconsistent with, or that could reasonably be regarded
as detracting from, the recommendation of the board of directors of Emerald that the Emerald Shareholders vote in favour of the Emerald Resolution; 

  

	 	(v)	 accept, approve, endorse or recommend, or publicly propose to accept, approve, endorse or recommend any
Acquisition Proposal, or take no position or remain neutral with respect to, any Acquisition Proposal that has been made public (it being understood that publicly taking no position or a neutral position with respect to a publicly announced or
otherwise publicly disclosed Acquisition Proposal for a period of two (2) Business Days shall not be considered a breach of this Section 6.1 provided that the board of directors of Emerald has rejected such Acquisition Proposal and
affirmed the Board Recommendation before the end of such two (2) Business Day period); or 

  

	 	(vi)	 enter into, any letter of intent, agreement in principle, agreement, arrangement or understanding (i) in
respect of or in any way related to any Acquisition Proposal; (ii) requiring Emerald to abandon, terminate or fail to consummate the Transaction or (iii) providing for the payment of any break, termination or other fees or expenses (no
matter how characterized) or conferring any other rights or options to acquire the Purchased Shares upon any Person including in the event that Emerald or any of its Affiliates completes the transactions contemplated by this Agreement or any other
transaction with Village Farms agreed to prior to any termination of this Agreement. 

  
 - 23 - 

	 	(b)	 Emerald shall, and shall direct and cause its Affiliates and its and their Representatives to, immediately
cease and terminate, and cause to be terminated, any solicitation, encouragement, discussion, negotiations or other activities commenced prior to the date of this Agreement with any Person (other than Village Farms and its affiliates) with respect
to any inquiry, proposal or offer that constitutes, or may reasonably be expected to constitute or lead to, an Acquisition Proposal, and in connection therewith shall: 

 

	 	(i)	 discontinue access to and disclosure of all information regarding PSF, including any data room and any other
confidential information, properties, facilities, books or records of Emerald, PSF or any Affiliate of Emerald that includes any such information; and 

  

	 	(ii)	 to the extent that such information has not previously been returned or destroyed, within two (2) Business
Days of the date hereof request, and use its commercially reasonable efforts to require, (i) the return or destruction of all copies of any confidential information regarding PSF, and (ii) the destruction of all material including or
incorporating or otherwise reflecting such confidential information regarding PSF provided to any Person (other than Village Farms and its affiliates), and use its commercially reasonable efforts to ensure that such requests are fully complied with
in accordance with the terms of such rights or entitlements. 

  

	 	(c)	 Emerald represents and warrants that neither it nor any of its Representatives or Affiliates has waived any
standstill or similar agreement or restriction with respect to the Purchased Shares in effect as of the date of this Agreement to which it is a party. Emerald further covenants and agrees that (a) it and its Representatives shall take all
commercially reasonable action to enforce each confidentiality, standstill, non-disclosure, non-solicitation, use, business purposes or similar agreement or covenant
with respect to the Purchased Shares, and (b) it shall not release, and shall cause its agents and Affiliates not to release, any Person from, or waive, amend, suspend or otherwise modify any provision of, or grant permission under or fail to
enforce, any standstill, non-disclosure, non-solicitation, use, business purpose or similar agreement or covenant with respect to the Purchased Shares.

  

	 	(d)	 Any violation of the restrictions set forth in this Article 6 by Emerald, its Affiliates or their respective
Representatives shall be deemed to be a breach of this Article 6 by Emerald. 

  

	6.2	 Acquisition Proposals 

 

	 	(a)	 If Emerald or any of its Affiliates or any of their respective Representatives receives any written or oral
inquiry, proposal or offer that constitutes, or may reasonably be expected to constitute or lead to, an Acquisition Proposal, or any request in connection with any written or oral inquiry, proposal or offer that constitutes, or may reasonably be
expected to constitute or lead to, an Acquisition Proposal for copies of, access to, or disclosure of, confidential information relating to PSF, 

  
 - 24 - 

	 	
including information, access, or disclosure relating to the properties, facilities, books or records of PSF, Emerald shall promptly notify Village Farms, at first orally (promptly and in any
event within 24 hours), and then in writing (promptly and in any event within 48 hours), of such Acquisition Proposal, inquiry, proposal, offer or request, including a description of the material terms and conditions of the Acquisition Proposal,
inquiry, proposal, offer or request and the identity of all Persons making the Acquisition Proposal, inquiry, proposal, offer or request and shall provide Village Farms with copies of all written agreements, documents, correspondence or other
materials received in respect of, from or on behalf of any such Person(s). 

  

	 	(b)	 The board of directors of Emerald shall promptly reaffirm the Board Recommendation by press release after any
Acquisition Proposal is publicly announced or publicly disclosed. Emerald shall provide Village Farms and its outside legal counsel with a reasonable opportunity to review the form and content of any such press release and shall make all reasonable
amendments to such press release as requested by Village Farms and its counsel. 

  

	 	(c)	 Emerald hereby waives its rights under sections 10.3, 10.4 and 10.5 of the Shareholders Agreement with respect
to any Acquisition Proposal until the termination of this Agreement in accordance with its terms. 

 ARTICLE 7

 CONDITIONS PRECEDENT TO VILLAGE FARMS’ OBLIGATION TO CLOSE 

The sale of the Purchased Shares is subject to the following conditions to be satisfied on or prior to the Closing Date, which conditions are for the
exclusive benefit of Village Farms and which may be waived, in whole or in part, by Village Farms in its sole discretion: 
  

	7.1	 Truth and Accuracy of Representations and Warranties at Closing 

The representations and warranties of Emerald contained in Article 3 of this Agreement shall be true, complete and accurate in all material respects
(except for the Emerald Fundamental Representations and those representations and warranties qualified by materiality or material, which shall be true, complete and accurate in all respects) as of the Closing Date (except that those representations
and warranties which are made as of an earlier specific date shall be true, complete and accurate only as of such date) with the same force and effect as though such representations and warranties had been made on and as of such date, and Village
Farms shall have received a certificate signed by an authorized officer of Emerald as to the satisfaction of the foregoing condition. 
  

	7.2	 Compliance with Covenants 

The covenants and obligations of Emerald to be performed or to be complied with at or prior to Closing pursuant to this Agreement shall have been duly
performed or complied with in all material respects and Village Farms shall have received a certificate signed by an authorized officer of Emerald as to the satisfaction of the foregoing condition. 

  
 - 25 - 

	7.3	 Change in Law 

Since the date of this Agreement, no Applicable Law or any change in any Applicable Law shall have been introduced, enacted or announced, the effect of which
would make the consummation of the transactions contemplated in this Agreement or any of the Ancillary Agreements illegal or otherwise restrain or prohibit Closing. 

 

	7.4	 No Actions or Proceedings 

The consummation of any of the transactions contemplated in this Agreement or in any of the Ancillary Agreements shall not have been restrained,
enjoined or otherwise prohibited by any Applicable Law and no action, litigation, demand, claim or other proceedings brought by any Governmental Authority shall be pending to enjoin or prohibit: (a) the sale of the Purchased Shares as
contemplated in this Agreement, (b) the consummation of any of the transactions contemplated in this Agreement or in any of the Ancillary Agreements or (c) the ability of Village Farms to continue to operate PSF in materially
the same manner as operated by Village Farms and Emerald as of the date hereof. 
  

	7.5	 Shareholder Approvals 

The Emerald Resolution shall have been approved and adopted by Emerald Shareholders at the Emerald Meeting in accordance with Applicable Laws and the Corporate
Records of Emerald and shall be in full force and effect. 
  

	7.6	 PSF Lender Consent 

Each of the PSF Lenders shall have provided its consent to the Transaction in accordance with the terms of the PSF Credit Agreement. 

 

	7.7	 Village Farms Lender Consent 

Each of the Village Farms Lenders shall have provided its consent to the Transaction in accordance with the terms of the Village Farms Credit Facilities. 

 

	7.8	 Regulatory Approvals 

The TSX Venture Exchange shall have provided its consent to the Transaction in accordance with applicable Securities Laws. 

 

	7.9	 Dissent Rights 

Dissent Rights shall not have been validly exercised, and not withdrawn or deemed to have been withdrawn, in respect of more than 5% of the issued and
outstanding common shares of Emerald. 
  

	7.10	 Ancillary Agreements 

Each of the Ancillary Agreements shall have been executed and delivered by the parties thereto (other than Village Farms or any of its Affiliates). 

  
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	7.11	 Voting and Support Agreements 

There shall have been no material breach of the Voting and Support Agreements by any party thereto other than Village Farms. 

 

	7.12	 Closing Documents 

Emerald shall have delivered or caused to be delivered to Village Farms the following, in form and substance satisfactory to Village Farms, acting reasonably:

  

	 	(a)	 share certificates representing the Purchased Shares endorsed in blank for transfer or accompanied by
irrevocable share transfer powers of attorney executed in blank, in either case, by the holders of record or a valid power of attorney; 

  

	 	(b)	 the certificates referred to in Sections 7.1 (Truth and Accuracy of Representations and Warranties at
Closing) and 7.2 (Compliance with Covenants); 

  

	 	(c)	 the D&O Mutual Releases referred to in Section 5.8(a), duly executed by PSF and each director and
officer of Emerald listed in Schedule 5.8(a); 

  

	 	(d)	 the SHAG Termination Agreement referred to in Section 5.8(b), duly executed by Emerald, Emerald Canada and
PSF; and 

  

	 	(e)	 the Non-Solicitation Agreement referred to in Section 5.8(c), duly
executed by Emerald. 

 ARTICLE 8 

CONDITIONS PRECEDENT TO EMERALD’S OBLIGATION TO CLOSE 

The sale of the Purchased Shares is subject to the following conditions to be satisfied on or prior to the Closing Date which conditions are for the exclusive
benefit of Emerald and which may be waived, in whole or in part, by Emerald in its sole discretion: 
  

	8.1	 Truth and Accuracy of Representations and Warranties at Closing 

The representations and warranties of Village Farms contained in Article 4 of this Agreement shall be true, complete and accurate in all material respects
(except for the Village Farms Fundamental Representations and those representations and warranties qualified by materiality or material, which shall be true, complete and accurate in all respects) on and as of the Closing Date (except that those
representations and warranties which are made as of an earlier specific date shall be true, complete and accurate only as of such date) with the same force and effect as though such representations and warranties had been made on and as of such
date, and Emerald shall have received a certificate signed by an authorized officer of Village Farms as to the satisfaction of the foregoing condition. 

  
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	8.2	 Compliance with Covenants 

The covenants and obligations of Village Farms to be performed or to be complied with at or prior to Closing pursuant to the Agreement shall have been duly
performed on and complied with in all material respects and Emerald shall have received a certificate signed by an authorized officer of Village Farms as to the satisfaction of the foregoing condition. 

 

	8.3	 No Actions or Proceedings 

The consummation of any of the transactions contemplated in this Agreement or in any of the Ancillary Documents shall not have been restrained, enjoined or
otherwise prohibited by any Applicable Law and no action, litigation, demand, claim or other proceeding brought by any Governmental Authority shall be pending to enjoin or prohibit: (a) the sale of the Purchased Shares as contemplated in this
Agreement, (b) the consummation of any of the transactions contemplated in this Agreement or in any of the Ancillary Agreements or (c) the ability of Village Farms to operate PSF in materially the same manner as operated by Village
Farms and Emerald as of the date hereof. 
  

	8.4	 Change in Law 

Since the date of this Agreement, no Applicable Law or any change in any Applicable Law shall have been introduced, enacted or announced, the effect of which
would make consummation of the transactions contemplated in this Agreement or any of the Ancillary Agreements illegal or otherwise restrain or prohibit Closing. 
  

	8.5	 Emerald Shareholder Approval 

The Emerald Resolution shall have been approved and adopted by Emerald Shareholders at the Emerald Meeting in accordance with Applicable Laws and the Corporate
Records of Emerald and shall be in full force and effect. 
  

	8.6	 Regulatory Approvals 

The TSX Venture Exchange shall have provided its consent to the Transaction in accordance with applicable Securities Laws. 

 

	8.7	 PSF Lender Consent 

Each of the PSF Lenders shall have provided its consent to the Transaction in accordance with the terms of the PSF Credit Agreement. 

 

	8.8	 Dissent Rights 

Dissent Rights shall not have been validly exercised, and not withdrawn or deemed to have been withdrawn, in respect of more than 5% of the issued and
outstanding common shares of Emerald. 

  
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	8.9	 Ancillary Agreements 

Each of the Ancillary Agreements shall have been executed and delivered by the parties thereto (other than Emerald or any of its Affiliates). 

 

	8.10	 Closing Documents 

Village Farms shall have delivered or caused to be delivered to Emerald the following, in form and substance satisfactory to Emerald, acting reasonably: 

 

	 	(a)	 the certificates referred to in Sections 8.1 (Truth and Accuracy of Representations and
Warranties) and 8.2 (Compliance with Covenants); 

  

	 	(b)	 the D&O Mutual Releases referred to in Section 5.8(a), duly executed by PSF; 

 

	 	(c)	 the SHAG Termination Agreement referred to in Section 5.8(b), duly executed by PSF and Village Farms; and

  

	 	(d)	 the Non-Solicitation Agreement referred to in Section 5.8(c), duly
executed by Village Farms. 

 ARTICLE 9 

TERMINATION AND EFFECT OF TERMINATION 
  

	9.1	 Termination 

This Agreement may be terminated at any time on or prior to the Closing Date: 
  

	 	(a)	 by Village Farms upon written notice to Emerald, if there has been a violation or breach by Emerald of any
covenant, representation and warranty or other agreement contained in this Agreement such that any condition specified in Article 7 would be incapable of being satisfied by the Outside Date, and such violation or breach is not waived by Village
Farms, or cured by Emerald within the earlier of (x) fifteen (15) days from notice of such breach or such longer period of time as may be required provided Emerald is diligently pursuing such cure after written notice thereof by Village Farms
and (y) the Outside Date, which date may be extended by written agreement of the Parties; 

  

	 	(b)	 by Emerald upon written notice to Village Farms, if there has been a violation or breach by Village Farms of
any covenant, representation and warranty or other agreement contained in this Agreement such that any condition specified in Article 8 would be incapable of being satisfied by the Outside Date, and such violation or breach is not waived by Emerald
or cured by Village Farms within the earlier of (x) fifteen (15) days from notice of such breach or such longer period of time as may be required provided Village Farms is diligently pursuing such cure after written notice thereof by Emerald
and (y) the Outside Date, which date may be extended by written agreement of the Parties; 

  
 - 29 - 

	 	(c)	 by written agreement of the Parties; 

 

	 	(d)	 by either Party if the Emerald Meeting is duly convened and held and the Emerald Resolution is voted upon by
Emerald Shareholders and the Emerald Resolution is not approved by Emerald Shareholders at the Emerald Meeting in accordance with Applicable Laws; 

  

	 	(e)	 by notice from any of Emerald or Village Farms, if Closing has not occurred by the Outside Date (unless the
failure of Closing to occur by such date is due to a breach of this Agreement by the Party purporting to exercise this termination right), which date may be extended by written agreement of the Parties; 

 

	 	(f)	 by Village Farms if the board of directors of Emerald or a committee thereof: (A) fails to unanimously
recommend or withdraws, amends, modifies or qualifies, or publicly proposes or states an intention to withdraw, amend, modify or qualify, the Board Recommendation in a manner materially adverse to Village Farms; (B) accepts, approves, endorses
or recommends, or publicly proposes to accept, approve, endorse or recommend, any Acquisition Proposal or publicly takes no position or publicly remains neutral with respect to a publicly announced, or otherwise publicly disclosed, Acquisition
Proposal for more than two (2) Business Days; (C) accepts or enters into or publicly proposes to accept or enter into any written agreement, commitment or arrangement in respect of an Acquisition Proposal; or (D) fails to publicly
reaffirm the Board Recommendation within two (2) Business Days after having been requested in writing by Village Farms to do so ((A) through (D) a “Change in Recommendation”); or 

 

	 	(g)	 by Village Farms if (i) Emerald shall have breached Article 6 in any material respect, (ii) the
Emerald Meeting is not convened and held in accordance with Section 5.3 or (iii) the Emerald Meeting is cancelled, postponed or adjourned by Emerald in breach of Section 5.3. 

 

	9.2	 Effect of Termination 

If this Agreement is terminated pursuant to Section 9.1 all further rights and obligations of the Parties under this Agreement shall terminate and no
Party shall have any liability in respect thereof, except that (i) the rights and obligations under Article 1 (Interpretation), Section 5.7(d) (Regulatory Approvals), Section 5.10(e) (Pre-Closing Reorganization Expenses), Section 5.10(f) (Pre-Closing Reorganization Indemnity), this Section 9.2 (Effect of Termination),
Section 9.3 (Termination Fee) and Article 11 (General Provisions) shall survive termination, and (ii) the termination of this Agreement shall not relieve any Party from any liability for any breach of this Agreement or
for fraud, Willful Breach or intentional misrepresentation prior to the date of such termination. Notwithstanding anything to the contrary herein, (a) no Party is obligated to terminate this Agreement in the circumstances contemplated by
Section 9.1 and (b) if any Party fails to perform or comply with any of the terms and conditions in this Agreement on its part to be performed or complied with, any other Party may seek an injunction and an order to enforce specifically
the terms of this Agreement. 

  
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	9.3	 Termination Fee 

 

	 	(a)	 Despite any other provision in this Agreement relating to the payment of fees and expenses, if a Termination
Fee Event occurs, Emerald shall pay or cause to be paid to Village Farms the Termination Fee in accordance with Section 9.3(c) as liquidated damages. For the avoidance of doubt, Emerald shall not be obligated to make more than one payment under
this Section 9.3 if one or more Termination Fee Events occurs. 

  

	 	(b)	 For the purposes of this Agreement: 

 

	 	(i)	 “Termination Fee” means three million dollars ($3,000,000) payable in cash; and

  

	 	(ii)	 “Termination Fee Event” means the termination of this Agreement: 

 

	 	(A)	 by Village Farms, pursuant to Section 9.1(f); 

 

	 	(B)	 by Village Farms pursuant to Section 9.1(a) as a result of a Willful Breach; or 

 

	 	(C)	 by either Party pursuant to Section 9.1(d), Section 9.1(e) or Section 9.1(g) if, in the case of
this paragraph (C), the Agreement is terminated and on and prior to such termination (i) an Acquisition Proposal shall have been made to the board of directors of Emerald (or any committee thereof) or any person shall have publicly announced an
intention to make an Acquisition Proposal and (ii) within 12 months following the date of such termination, (a) such Acquisition Proposal is consummated, or (b) Emerald or one or more of its Subsidiaries, directly or indirectly, in
one or more transactions, enters into a definitive agreement in respect of such Acquisition Proposal and such Acquisition Proposal is later consummated (whether or not within 12 months after such termination). 

For purposes of the foregoing, the term “Acquisition Proposal” shall have the meaning assigned to such term in Section 1.1
above, except that references to “voting or equity securities of PSF” shall be deemed to be references to “20% or more of the Purchased Shares”. 
  

	 	(c)	 If a Termination Fee Event occurs due to a termination of this Agreement pursuant to Section 9.1(a) or
Section 9.1(f), the Termination Fee shall be paid within two (2) Business Days following such Termination Fee Event. If a Termination Fee Event occurs in the circumstances set out in Section 9.3(b)(ii)(C), the Termination Fee shall be
paid within two (2) Business Days following the consummation/closing of the Acquisition Proposal referred to therein. Any Termination Fee shall be paid, or caused to be paid, by Emerald to Village Farms by wire transfer in immediately available
funds to an account designated by Village Farms. 

  
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	 	(d)	 If this Agreement has been terminated by Village Farms or Emerald pursuant to Section 9.1(d), then Emerald
shall, within two (2) Business Days following the termination of this Agreement, pay or cause to be paid to Village Farms by wire transfer of immediately available funds an expense reimbursement fee (the “Expense Reimbursement
Fee”) for reasonable, documented out-of-pocket third party transaction expenses incurred by Village Farms in connection with this Agreement, in an amount not to
exceed one million dollars ($1,000,000), provided that in no event shall Emerald be required to pay under Section 9.3(a) and this Section 9.3(d), in the aggregate, an amount in excess of the Termination Fee. For greater certainty, any
payment by Emerald under this Section 9.3(d) will be credited against a payment under Section 9.3(a). 

  

	 	(e)	 In lieu of a cash payment in respect of any Termination Fee or Expense Reimbursement Fee payable to Village
Farms, Village Farms shall be entitled, to the extent Emerald has not made or is unable to make such cash payment within thirty (30) days following termination, to cause PSF to issue such number of common shares of PSF as are equal in value to
the amount of such Termination Fee or Expense Reimbursement Fee (as the case may be) based on a value per share equal to the Purchase Price divided by the total number of Purchased Shares, and the Parties hereby agree that this shall be PSF’s
good and sufficient authority for so doing. 

 ARTICLE 10 

INDEMNIFICATION 
  

	10.1	 Indemnification by Emerald 

Subject to the limitations set forth in Section 10.4, following Closing, Emerald shall indemnify and save harmless Village Farms and its Affiliates and
their respective successors and assigns, and their respective directors, officers, employees, agents and representatives (the “Village Farms Indemnified Parties”) of, from and against any Losses, suffered by, imposed upon or
asserted against any of the Village Farms Indemnified Parties directly or indirectly as a result of, arising from, in connection with or in respect of: 
  

	 	(a)	 any inaccuracy in, misrepresentation of, or breach of any representation or warranty of Emerald made in Article
3 of this Agreement or in any certificate or other document delivered by Emerald pursuant to this Agreement; or 

  

	 	(b)	 any failure of Emerald to perform or fulfill any covenant, undertaking, obligation or agreement on the part of
Emerald under this Agreement. 

  

	10.2	 Indemnification by Village Farms 

Subject to the limitations set forth in Section 10.4, following Closing, Village Farms shall indemnify and save harmless Emerald and its Affiliates and
their respective successors and assigns, and their respective directors, officers, employees, agents and representatives (the “Emerald Indemnified Parties”) of, from and against any Losses, suffered by, imposed upon or asserted
against any of the Emerald Indemnified Parties directly or indirectly as a result of, arising from, in connection with or in respect of: 

  
 - 32 - 

	 	(a)	 any inaccuracy in, misrepresentation of, or breach of any representation or warranty of Village Farms made in
Article 4 of this Agreement or in any certificate or other document delivered by Village Farms pursuant to this Agreement; or 

  

	 	(b)	 any failure of Village Farms to perform or fulfill any covenant, undertaking, obligation or agreement on the
part of Village Farms under this Agreement. 

  

	10.3	 Survival 

  

	 	(a)	 Except as set forth in this Section 10.3(a) and in Section 10.3(b), liability for breaches or non-fulfillment of the representations and warranties of each Party contained in this Agreement or in any certificate delivered hereunder will terminate (and such representations, warranties, obligations and
covenants shall survive for) eighteen (18) months following the Closing Date, except: 

  

	 	(i)	 in the case of fraud, in which case liability will survive and continue in full force and effect without
limitation of time in accordance with Applicable Law; or 

  

	 	(ii)	 to the extent that, during such period, the Indemnified Person has given notice to the Indemnifying Party of a
claim in respect of any such representation, warranty, obligation, condition or covenant in accordance with this Article 10, in which case liability therefor will survive and continue in full force and effect until the final determination of such
claim in accordance with this Article 10. 

  

	 	(b)	 The representations and warranties of Emerald contained in Section 3.2 (Corporate Power and Due
Authorization of Emerald), Section 3.3 (No Conflict), Section 3.4 (Consents and Authorizations) and 3.7 (Title to Purchased Shares) (collectively, the “Emerald Fundamental Representations”)
and Emerald’s obligation to indemnify Village Farms hereunder in connection with a breach thereof will survive and continue in full force and effect for six (6) years following the Closing Date. 

 

	 	(c)	 The representations and warranties of Village Farms contained in Section 4.1 (Corporate Power and Due
Authorization of Emerald), Section 4.2 (No Conflict) and Section 4.3 (Consents and Authorizations) (collectively, the “Village Farms Fundamental Representations”) and Village Farms’ obligation to
indemnify Emerald hereunder in connection with a breach thereof will survive and continue in full force and effect for six (6) years following the Closing Date. 

 

	 	(d)	 Except as otherwise expressly provided in this Agreement, all covenants and agreements of the Parties contained
in this Agreement or any Ancillary Agreement shall survive and continue indefinitely. 

  
 - 33 - 

	 	(e)	 No Party or other Person is entitled to indemnification pursuant to this Article 10 unless such Party or other
Person has given written notice of its claim for indemnification pursuant to Section 10.5(a) within the survival periods specified in the foregoing provisions of this Section 10.3. 

 

	10.4	 Calculation of Liability; Limitations 

 

	 	(a)	 For purposes of determining and calculating the amount of any Losses pursuant to this Article 10 in respect of
any inaccuracy in, misrepresentation of, or breach of any representation or warranty of either Party contained in this Agreement, all qualifications as to materiality where the words or phrases “material”, “immaterial”, “in
all material respects” or words or phrases of similar import are used shall be disregarded, such that the amount of damages payable to an Indemnified Person is not subject to any deduction in respect of amounts below the level of materiality
stated in the relevant representation and warranty. Further, but subject to Section 10.4(d), the calculation of such amount shall not be affected by any inspection or inquiries made by or on behalf of the party entitled to be indemnified under
this Article 10. 

  

	 	(b)	 Notwithstanding the foregoing provisions of this Article 10, the aggregate liability of Emerald or Village
Farms, as applicable, of all claims for Losses of Village Farms and any Village Farms Indemnified Party, or Emerald and any Emerald Indemnified Party, as applicable, in respect of matters described in Section 10.1(a) or Section 10.2(a) of
this Agreement, as applicable, shall not in any event exceed, in the aggregate, the Purchase Price. 

  

	 	(c)	 No indemnification in respect of matters described in Section 10.1(a) or Section 10.2(a) of this
Agreement, as applicable, shall be payable by Emerald or Village Farms, as applicable, unless and until the aggregate amount of Losses from all claims against Emerald or Village Farms, as applicable, exceeds $500,000, in which event the
Village Farms Indemnified Parties or Emerald Indemnified Parties, as applicable, shall be entitled to recover the full amount of such Losses from the first dollar. 

 

	 	(d)	 Notwithstanding anything to the contrary in this Agreement, no Party shall be liable for any Losses pursuant to
this Article 10 resulting from or relating to any inaccuracy in or breach of any representation or warranty in this Agreement if the party seeking indemnification for such Losses had knowledge of such inaccuracy or breach before Closing.

  

	10.5	 Third Party Claims 

 

	 	(a)	 If Village Farms or a Village Farms Indemnified Party (each, an “Indemnified Person”) shall be
entitled to any indemnification provided for under this Article 10 in respect of, arising out of or involving any claim, assertion or proceeding by a third party against the Indemnified Person (a “Third Party Claim”), and in respect
of which the Indemnified Person proposes to demand indemnification from 

  
 - 34 - 

	 	
Emerald (the “Indemnifying Party”) in accordance with the terms hereof, the Indemnified Person shall give notice to that effect together with particulars of the nature and basis
of such claim (including the breach, inaccuracy, non-performance or provision of this Agreement to which such claim relates), together with a reasonable estimate of the Losses relating thereto and copies of
any and all relevant pleadings and other demands to the Indemnifying Party with reasonable promptness. The failure to give, or delay in giving, such notice will not relieve the Indemnifying Party of its obligations except and only to the extent of
any prejudice caused to the Indemnifying Party by such failure or delay. 

  

	 	(b)	 The Indemnifying Party may, by notice to the Indemnified Person given not later than thirty (30) days
after receipt of the notice described in Section 10.5(a) relating to a Third Party Claim, assume control of the defence, compromise or settlement of the Third Party Claim provided that: 

 

	 	(i)	 the Third Party Claim involves only money damages and does not seek any injunctive or other equitable relief;

  

	 	(ii)	 if the named parties in any Third Party Claim include both the Indemnifying Party and the Indemnified Person,
representation by the same counsel would, in the reasonable opinion of external counsel for the Indemnified Person, still be appropriate notwithstanding any actual or potential differing interests between them (including the availability of
different defences); and 

  

	 	(iii)	 the Indemnifying Party, at the Indemnified Person’s request, provides reasonable assurance to the
Indemnified Person of its financial ability to defend the Third Party Claim and to provide indemnification in respect thereof. 

  

	 	(c)	 If the Indemnifying Party assumes control of the Third Party Claim it is conclusively established for purposes
of this Agreement that the Third Party Claim is within the scope of, and entitled to, indemnification pursuant to this Article 10. 

  

	 	(d)	 Upon assumption of control by the Indemnifying Party: 

 

	 	(i)	 the Indemnifying Party shall proceed with the defence, compromise or settlement of the Third Party Claim at its
sole cost and expense, retaining counsel that is reasonably satisfactory to the Indemnified Person; 

  

	 	(ii)	 the Indemnifying Party shall keep the Indemnified Person reasonably advised with respect to the status of the
Third Party Claim (including supplying copies of all material documents promptly as they become available) and shall arrange for its counsel to inform the Indemnified Person on a reasonably regular basis of the status of the Third Party Claim; and

  

	 	(iii)	 the Indemnifying Party shall not consent to the entry of any judgment or enter into any settlement with respect
to the Third Party Claim unless consented to by the Indemnified Person (which consent may not be unreasonably or arbitrarily withheld, conditioned or delayed). 

  
 - 35 - 

	 	(e)	 The Indemnified Person may retain separate co-counsel at its sole cost
and expense, and may participate in the defence of the Third Party Claim. 

  

	 	(f)	 The Indemnified Person shall, at the expense of the Indemnifying Party, cooperate with the Indemnifying Party
and use its commercially reasonable efforts to make available to the Indemnifying Party all relevant information in its possession or under its control (provided that it does not cause it to breach any confidentiality obligations), including
documentation necessary to support and verify the Losses giving rise to the indemnity claim, and shall give the Indemnifying Party reasonable access to all premises and personnel of the Indemnified Person which would have any bearing on the claim,
and shall take such other steps as are, in the reasonable opinion of counsel for the Indemnifying Party, necessary to enable the Indemnifying Party to conduct such defence; provided always that: 

 

	 	(i)	 no admission of fault may be made by or on behalf of Village Farms or any Village Farms Indemnified Party
without the prior written consent of Village Farms; and 

  

	 	(ii)	 the Indemnified Person is not obligated to take any measures which, in the reasonable opinion of the
Indemnified Person’s external legal counsel, could be materially prejudicial or unfavourable to the Indemnified Person. 

  

	 	(g)	 If (i) the Indemnifying Party fails to give the Indemnified Person the notice required in
Section 10.5(b) or any of the conditions in Section 10.5(b) have not been satisfied or (ii) the Indemnifying Party breaches any of its other obligations under this Section 10.5 in a manner that is materially prejudicial to the
Indemnified Person, the Indemnified Person may assume control of the defence, compromise or settlement of the Third Party Claim and retain counsel as in its sole discretion is reasonably advisable, the whole at the Indemnifying Party’s
sole cost and expense; provided that the Indemnified Person only retains one counsel per applicable jurisdiction. Any settlement or other final determination of the Third Party Claim will be binding upon the Indemnifying Party provided that such
settlement has been consented to in writing by Village Farms. The Indemnifying Party shall, at its sole cost and expense, reasonably cooperate with the Indemnified Person and use commercially reasonable efforts to make available to the
Indemnified Person all relevant information in its possession or under its control and take such other steps as are, in the reasonable opinion of external counsel for the Indemnified Person, necessary to enable the Indemnified Person
to conduct the defence. The Indemnifying Party shall reimburse the Indemnified Person for the costs of defending against the Third Party Claim (including reasonable legal fees and expenses), and shall remain responsible for any Losses the
Indemnified Person may suffer resulting from, arising out of, or relating to, the Third Party Claim, in each case, to the extent the Indemnified Person is entitled to indemnify hereunder and in such case, to the fullest extent provided in
this Article 10. The Indemnified Person 

  
 - 36 - 

	 	
shall keep the Indemnifying Party reasonably advised with respect to the status of the Third Party Claim (including supplying copies of all material documents promptly as they become available)
and shall arrange for its counsel to inform the Indemnifying Party on a reasonably regular basis of the status of the Third Party Claim. 

  

	 	(h)	 If the Indemnifying Party has provided written notice to the Indemnified Person disputing its liability with
respect to any claim for indemnification made hereunder, the Indemnifying Party and Indemnified Person shall proceed in good faith to negotiate a resolution of such dispute and, if not resolved through negotiations, either Party may seek a
resolution of such dispute by litigation in a court of competent jurisdiction in accordance with Section 10.1 or Section 10.2, as the case may be. 

  

	 	(i)	 Any amount of Losses required or agreed by the Parties to be paid in accordance with this Article 10 shall be
paid to the Indemnified Person on demand following the final determination thereof, whether by agreement of the Parties, settlement with any third party or by a court of competent jurisdiction, in each case, in accordance with the terms hereof.

  

	10.6	 Indemnification Adjustment to Purchase Price 

To the fullest extent permitted under Applicable Law, any amounts payable under this Article 10 shall constitute an adjustment in the Purchase Price. 

ARTICLE 11 
 GENERAL
PROVISIONS 
  

	11.1	 Notices 

Any notice or other communication (a “Notice”) given pursuant to or in connection with this Agreement shall be in writing and shall be
sufficiently given to a Party to whom it is addressed if transmitted by email or delivered in person to or for such Party at the address of such Party indicated below or at such other address as such Party shall have theretofore notified to the
other Parties in accordance herewith. Any Notice so addressed and transmitted or delivered as aforesaid shall be deemed to have been sufficiently given or made on the date on which it was so transmitted by email or delivered (provided that if such
day is not a Business Day, the Notice shall be deemed given or made on the Business Day following transmission or delivery). 
 To
Village Farms 
 Village Farms International, Inc. 

4700-80th Street 
 Delta, British
Columbia 
 V4K 3N3 

Attention:    Stephen C. Ruffini 

Email:         [Redacted] 

  
 - 37 - 

 With a copy to: 

Torys LLP 
 79 Wellington Street
West 
 TD Centre, Suite 3000 

Toronto, Ontario 
 M5K 1N2 

Attention:    John Emanoilidis and Michael Zackheim 

Email:         [Redacted] 

To Emerald: 
 Emerald
Health Therapeutics, Inc. 
 210-800 West Pender Street 

Vancouver, British Columbia 
 V6C
1J8 
 Attention:    Avtar Dhillon and Riaz Bandali 

Email:          [Redacted] 

With a copy to: 
 Bennett Jones
LLP 
 2500 Park Place 
 666
Burrard Street 
 Vancouver, British Columbia 

V6C 2X8 

Attention:    James Beeby 

Email:         [Redacted] 
  

	11.2	 Public Announcements 

Emerald and Village Farms shall publicly announce the Transaction promptly following the execution of this Agreement by the Parties hereto, the text and timing
of such announcements to be approved by each Party in advance, acting reasonably and in good faith. Without first consulting with the other Party, a Party must not issue any press release or make any other public statement or disclosure with respect
to this Agreement or the Transaction, or make any filing with any third party or Governmental Authority (other than as required by Applicable Laws, including Securities Laws, or by the request of any Governmental Authority, provided that any Party
making such required disclosure shall use its commercially reasonable efforts to give the other Party prior oral or written notice and a reasonable opportunity to review and comment on the disclosure) with respect to this Agreement or the
Transaction without the consent of the other Party. Without limiting the generality of the foregoing and for greater certainty, each of the Parties acknowledges and agrees that the Parties shall file, in accordance with Securities Laws, this
Agreement under their respective profiles on SEDAR without any further notice to the other Party. The Parties further acknowledge and agree to continue to be bound by the confidentiality provisions in article 12 of the Shareholders Agreement, except
following Closing as provided in the SHAG Termination Agreement. 

  
 - 38 - 

	11.3	 Expenses 

Except as otherwise set forth in this Agreement, each Party shall be responsible for its own costs, expenses and all legal, tax and financial advisory fees,
investment banking or brokerage fees and commissions incurred by it in connection with the transactions contemplated in this Agreement and the Ancillary Agreements. 
  

	11.4	 Further Assurances 

Each Party shall, upon the reasonable request of the other Party, whether before, at or after Closing, do, execute, acknowledge and deliver or cause to be
done, executed, acknowledged or delivered all such further acts, deeds, assignments, transfers, conveyances, agreements or other documents as, in the reasonable opinion of the requesting Party, may be necessary or desirable to effectuate the
complete consummation of the transactions contemplated herein. 
  

	11.5	 Equitable Relief 

Each Party agrees that irreparable damage to the other Party for which monetary damages, even if available, would not be an adequate remedy in the event that
any of the provisions of this Agreement or the Ancillary Agreements (including the failure by any Party to take such actions as are required of it hereunder to consummate the transactions contemplated by this Agreement or the Ancillary Agreements)
was not performed in accordance with its specified terms or was otherwise breached. It is accordingly agreed that the Parties shall be entitled to an injunction or other equitable relief to prevent breaches of this Agreement or the Ancillary
Agreements and to enforce specifically the terms and provisions hereof or thereof in any court of competent jurisdiction, this being in addition to any other remedy to which any Party is entitled at law or in equity, and any requirement for the
securing or posting of any bond in connection with the obtaining of any such injunctive or other equitable relief is hereby waived. 
  

	11.6	 No Third-Party Beneficiaries 

Except as provided in Section 5.10(e), Section 5.10(f) and Article 10, nothing contained in this Agreement or any other agreement entered into
pursuant hereto is intended, or should be interpreted as having been intended, to create any right or assume any obligation in favour of, or grant any waiver or release from any obligation to, or otherwise constitute a stipulation in favour of any
Person, other than the parties hereto or thereto, as the case may be, and the respective legal successors and permitted assigns of such parties. 
  

	11.7	 Successors and Assigns 

This Agreement shall enure to the benefit of and be binding upon the Parties and their respective legal successors, heirs, representatives and permitted
assigns; provided, however, that neither this Agreement nor any benefit hereunder may be voluntarily assigned by Emerald, unless the prior written consent of Village Farms shall have been obtained. Village Farms shall be entitled, without the
consent of Emerald, to assign any or part of its rights or obligations under this Agreement to any of its Affiliates, provided that if such assignment takes place, Village Farms or a successor shall continue to be liable jointly and severally for
all of its obligations hereunder. 

  
 - 39 - 

	11.8	 Entire Agreement 

This Agreement and each of the Ancillary Agreements constitute the entire agreement between the Parties with respect to the subject matter hereof or thereof
and supersede all prior agreements among the Parties with respect to such subject matter. 
  

	11.9	 Amendment and Waiver 

No supplement or amendment of this Agreement shall be binding upon the Parties unless expressly provided in a document duly executed by each of the Parties.
Any waiver of any term or condition or any breach of any covenant of this Agreement shall not operate as a waiver of any other such term or condition or breach, nor shall any failure to enforce any provision hereof operate as a waiver of such
provision or of any other provision hereof. 
  

	11.10	 Severability 

If any provision of this Agreement shall be held illegal, invalid or unenforceable by any competent court in any relevant jurisdiction, such illegality,
invalidity or unenforceability shall attach only to such provision in such jurisdiction and such provision shall be severed herefrom and be ineffective to the extent of such illegality, invalidity or unenforceability and shall not affect or impair
or render illegal, invalid or unenforceable such provision in any other jurisdiction or any other provision of this Agreement in any jurisdiction. 
  

	11.11	 Counterparts 

This Agreement may be executed by the Parties in several counterparts, each of which when so executed and delivered shall be an original, but all such
counterparts shall constitute but one and the same instrument. 
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 - 40 - 

 IN WITNESS WHEREOF the Parties have executed this Agreement. 

 

			
	VILLAGE FARMS INTERNATIONAL, INC.
		
	By:	 	 /s/ Stephen C. Ruffini

		 	 Name: Stephen C. Ruffini

Title:   Chief Financial Officer

	
	EMERALD HEALTH THERAPEUTICS, INC.
		
	By:	 	 /s/ Jim Heppell

		 	 Name: Jim Heppell

Title:   Director

 SCHEDULE 2.1(c)(ii) 

FORM OF PROMISSORY NOTE 

(See attached) 

 SCHEDULE 5.8(a) 

LIST OF RESIGNING DIRECTORS AND OFFICERS 

Riaz Bandali 
 Punit Dhillon 

Jim Heppell 
 FORM OF RESIGNATION AND MUTUAL
RELEASE 
 (See attached) 

 SCHEDULE 5.8(b) 

FORM OF SHAG TERMINATION AGREEMENT 

(See attached) 

 SCHEDULE 5.8(c) 

FORM OF NON-SOLICITATION AGREEMENT 

(See attached)

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