Document:

Exhibit 4.2 

 

CERTAIN
CONFIDENTIAL INFORMATION (MARKED BY BRACKETS AS “[***]”) HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I)
NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE ●.

 

HARVEST
HEALTH & RECREATION INC.

 

FORM
OF 

 

7.00%
UNSECURED CONVERTIBLE DEBENTURE DUE ●

 

	DEBENTURE	 
	CERTIFICATE
    NUMBER: CD-2019-A-●	PRINCIPAL
    AMOUNT: US$●

 

HARVEST
HEALTH & RECREATION INC., a corporation incorporated under the laws of the Province of British Columbia, Canada (the
“Borrower”), for value received, hereby acknowledges itself indebted and promises to pay to or to the
order of Gundy Co. in trust for [***] (hereinafter referred to as the
“Lender” or the “Debentureholder”), the principal amount of ● dollars
(US$●) (the “Principal Amount”) in lawful money of the United States of America in the manner
hereinafter provided at the foregoing address of the Lender, or at such other place or places as the Lender may designate by
notice in writing to the Borrower, on ●, or such earlier date as the Principal Amount may become due and payable (the
“Maturity Date”), and to pay interest to the Lender on the Principal Amount outstanding from time to time
owing hereunder to the date of payment as hereinafter provided, both before and after maturity or demand, default and
judgment.

 

The
Debentureholder has the right, from time to time and at any time prior to 5:00 p.m. (Eastern time) on the Business Day (as defined
herein) immediately preceding the Maturity Date, to convert all or any portion of the outstanding Principal Amount into Common
Shares (as defined herein), at a price, with respect to the Principal Amount of the Debenture, equal to the Conversion Price (as
defined herein), subject to adjustment in certain events, together with any accrued and unpaid interest owing thereon on the Conversion
Date (as defined herein). Beginning on the date that is four months plus one day following the Closing Date, if, for any ten (10)
consecutive VWAP Days (as defined herein), the VWAP (as defined herein) of the Common Shares on the Exchange (as defined herein)
is greater than $●, the Borrower has the right to require the Debentureholder to convert all but not less than all of the
Principal Amount then outstanding under this Debenture at the Conversion Price on not less than thirty (30) days’ written
notice.

 

Unless
the Lender exercises the Conversion Right (as defined herein) or the Borrower exercises the Accelerated Conversion Right (as defined
herein) attached to this Debenture, the Principal Amount owing, or the portion of the Principal Amount which has yet to be converted,
together with any accrued and unpaid interest owing thereon and all other amounts now or hereafter payable hereunder (collectively,
the “Obligations”) shall be due and payable on the Maturity Date in accordance with the terms hereof. This
Debenture is issued subject to the terms and conditions appended hereto as Schedule A.

 

(Signature
page follows)

 

    	 

     

    

 

IN
WITNESS WHEREOF, the Borrower has caused this Debenture to be executed by a duly authorized officer. DATED for reference this
●th day of ●, ●.

 

	 	HARVEST
    HEALTH & RECREATION INC.
	 	 	                    
	 	Per:	  
	 	 	●
	 	 	●

 

    	 

     

    

 

Schedule
A – Terms and Conditions for 7.00% Senior Unsecured Convertible Debenture

 

ARTICLE
1 – INTERPRETATION

 

Section
1.1 Definitions

 

In
this Debenture, the following terms shall have the following meanings:

 

(1)
“Accelerated Conversion Notice” has the meaning attributed thereto in Section 4.2;

 

(2)
“Accelerated Conversion Right” means the right attached to this Debenture which permits the Borrower to require
the Debentureholder to convert the Principal Amount into Common Shares in accordance with Article 4;

 

(3)
“Accelerated Issue Date” has the meaning attributed thereto in Section 4.2;

 

(4)
“Business” means the business of the Borrower and it Material Subsidiaries being (a) the business of the production,
sale or distribution of cannabis or products or materials based on, or that include, cannabis, including through the acquisition
of assets or direct or indirect investment; or (b) other commercial activities relating to the production, sale or distribution
of cannabis or products or materials based on, or that include, cannabis, including through the acquisition of assets or direct
or indirect investment;

 

(5)
“Business Day” means a day other than a Saturday, Sunday or other day on which commercial banks in Toronto,
Ontario, Canada are authorized by law to close;

 

(6)
“Canadian Securities Laws” means the Securities Act (Ontario) and the securities laws of any other province
or territory of Canada, if applicable, and the rules, regulations and policies of any Canadian securities regulatory authority
administering such securities laws, as the same shall be in effect from time to time;

 

(7)
“Change of Control” means:

 

	 	(a)	any
    transaction (whether by purchase, Merger or otherwise) whereby a Person or Persons acting jointly or in concert (within the
    meaning of applicable Canadian Securities Laws) directly or indirectly acquires the right to cast, at a general meeting of
    shareholders of the Borrower, more than 50% of the aggregate votes attached to the Common Shares, multiple voting shares and
    super voting shares, voting as one class, that may be ordinarily cast at a general meeting;
	 	 	 
	 	(b)	the
    Borrower’s arrangement, amalgamation, consolidation or Merger with or into any other Person, or any Merger of another
    Person into the Borrower, unless the holders of voting securities of the Borrower immediately prior to such arrangement, amalgamation,
    consolidation or Merger hold securities representing 50% or more of the voting control or direction in the Borrower or the
    successor entity upon completion of the arrangement, amalgamation, consolidation or Merger; or
	 	 	 
	 	(c)	any
    conveyance, transfer, sale lease or other disposition of all or substantially all of the Borrower’s and the Borrower’s
    subsidiaries’ assets and properties, taken as a whole, to another arm’s length Person,
	 	 	 
	 	provided
    that, for greater certainty, a Change of Control will not include the announced acquisition of Verano Holdings, LLC or any
    transactions contemplated to be completed in order to effect such acquisition;

 

(8)
“Closing Date” means the closing date of the Offering;

 

(9)
“Common Shares” means the subordinate voting shares in the capital of the Borrower or the common shares of
the continuing corporation or other resulting issuer formed as a result of a Merger;

 

(10)
“Conversion Date” has the meaning attributed thereto in Section 4.1;

 

    	A - 1

     

    

 

(11)
“Conversion Price” means US$● (being $● divided by the Exchange Rate), subject to adjustment in
certain events;

 

(12)
“Conversion Right” has the meaning attributed thereto in Section 4.1;

 

(13)
“Debentures” means this 7.00% senior unsecured convertible debenture and any other debentures substantially
on the same terms as this debenture issued by the Borrower under the Offering;

 

(14)
“Exchange” means the Canadian Securities Exchange, or such other Canadian stock exchange on which the Common
Shares are listed and posted for trading;

 

(15)
“Exchange Rate” means ●, being the U.S. dollar/Canadian dollar exchange published by the Bank of Canada
on the date that is two Business Days prior to the Closing Date;

 

(16)
“Event of Default” has the meaning attributed thereto in Section 6.1;

 

(17)
“Interest Payment Date” means the last day of June and December in each year commencing on June 30, 2019, as well
as the Maturity Date, and the date on which all or any portion of this Debenture is converted;

 

(18)
“Issue Date” has the meaning attributed thereto in Section 4.2(1);

 

(19)
“Material Subsidiaries” means the entities listed in Schedule “D”, and each, a “Material
Subsidiary”;

 

(20)
“Maturity Date” means ●;

 

(21)
“Merger” means any transaction (whether by way of consolidation, amalgamation, arrangement, merger, transfer,
sale or lease) whereby all or substantially all of the Borrower’s assets would become the property of any other Person,
or, in the case of any such consolidation, amalgamation, arrangement or merger, of the continuing corporation or other entity
resulting therefrom;

 

(22)
“Offering” means the offering of Debentures in the aggregate principal amount of up to US$100,000,000, to be
issued and sold by the Borrower, as announced in the Borrower’s press release dated ●;

 

(23)
“Person” means an individual, partnership, corporation, limited liability company, association, trust, unincorporated
organization, or a government or agency or political subdivision thereof;

 

(24)
“Permitted Acquisition” means, with respect to any Person, any transaction by which such Person acquires as
a going concern the business of, or all or substantially all of the assets of any corporation or other business entity or division
thereof or any other person, whether through purchase of assets, purchase of shares or other equity interests, amalgamation, merger,
joint venture or otherwise, but in each case only if:

 

	 	(a)	no
    Event of Default is continuing on the date of the acquisition or would occur as a result of such acquisition;
	 	 	 
	 	(b)	the
    relevant business is complementary to, or substantially the same as that carried on by such Person; and
	 	 	 
	 	(c)	either:
	 	 	 	 
	 	 	(i)	the
    Person or Persons from whom the acquisition is made are at arm’s length to such Person; or
	 	 	 	 
	 	 	(ii)	the
    acquisition is made from a non-arm’s length to such Person, and the aggregate purchase price for the acquisition (including
    any direct or indirect payments made to any of the vendors in connection therewith) does not exceed the fair market value
    of the business or assets being acquired;

 

    	A - 2

     

    

 

(25)
“Subsidiary” means as to any Person, any corporation or other business entity in which such Person or one or
more of its Subsidiaries owns, directly or indirectly, sufficient equity or voting interests to enable it or them (as a group)
to elect a majority of the directors (or Persons performing similar functions) of such entity, and any partnership or joint venture
if more than a 50% interest in the profits or capital thereof is owned by such Person or one or more of its Subsidiaries;

 

(26)
“Taxes” means any present or future income and other taxes, levies, rates, royalties, deductions, withholdings,
assessments, fees, dues, duties, imposts and other charges of any nature whatsoever, together with any interest and penalties,
additions to tax and other additional amounts, levied, assessed or imposed by any governmental authority;

 

(27)
“trading day” means a day on which the Exchange is open for trading;

 

(28)
“US Cannabis Laws” means all US federal laws, statutes and/or regulations
as applicable to the production, trafficking, distribution, processing, extraction, sale, etc. of cannabis and cannabis related
substances and products;

 

(29)
“VWAP” means the daily volume weighted average trading price of the Common
Shares for the applicable period (which must be calculated utilizing days in which the Common Shares actually trade) on the Exchange;
and

 

(30)
“Warrants” has the meaning given to such term in Section 2.5.

 

Section
1.2 Headings

 

The
inclusion of headings in this Debenture is for convenience of reference only and shall not affect the construction or interpretation
hereof.

 

Section
1.3 Currency

 

Unless
otherwise indicated, all amounts in this Debenture are stated and shall be paid in currency of Canada.

 

Section
1.4 Number, Gender and Persons

 

Unless
the context otherwise requires, words importing the singular in number only shall include the plural and vice versa, words importing
the use of gender shall include the masculine, feminine and neuter genders and words importing persons shall include individuals,
corporations, partnerships, associations, trusts, unincorporated organizations, governmental bodies and other legal or business
entities.

 

Section
1.5 Severability

 

If
any provision of this Debenture is determined by a Court of competent jurisdiction to be invalid, illegal or unenforceable in
any respect, such determination shall not impair or affect the validity, legality or enforceability of the remaining provisions
hereof, and each such provision shall be interpreted in such a manner as to render them valid, legal and enforceable to the greatest
extent permitted by applicable law. Each provision of this Debenture is declared to be separate, severable and distinct.

 

Section
1.6 Entire Agreement

 

This
Debenture, including any schedules attached hereto, constitutes the entire agreement between the Borrower and the Lender relating
to the subject matter hereof, and supersedes all prior agreements, representations, warranties, statements, promises, information,
arrangements, understandings, conditions or collateral agreements, whether oral or written, express or implied, with respect to
the subject matter hereof.

 

    	A - 3

     

    

 

ARTICLE
2 – PAYMENT OF PRINCIPAL, INTEREST AND OTHER CONSIDERATIONS

 

Section
2.1 Repayment of Principal

 

Subject
to the terms and conditions hereof, the Principal Amount outstanding on this Debenture, together with any accrued and unpaid interest
owing thereon, shall be repaid by the Borrower to the Lender on the Maturity Date. The Borrower shall satisfy its obligation to
pay the Principal Amount outstanding on this Debenture, together with any accrued and unpaid interest owing thereon, on the Maturity
Date, in cash.

 

Section
2.2 Interest Payable

 

Interest
on the Principal Amount outstanding under this Debenture shall be at the rate of seven percent (7.00%) per annum, calculated and
payable semi-annually in lawful currency of the United States of America, not in advance, on each Interest Payment Date, and shall
be first payable on June 30, 2019. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months.
The June 30, 2019 interest payment will represent accrued interest from the Closing Date to June 30, 2019. For greater certainty,
such interest shall be payable before, during or after the occurrence of an Event of Default.

 

Section
2.3 Method of Paying of Interest

 

The
Borrower shall satisfy its obligation to pay interest on the Debenture, on an applicable Interest Payment Date, in cash in lawful
money of the United States of America, by sending payment of such interest by prepaid ordinary mail, electronic transfer of funds
or such other means as may be agreed to by the Debentureholder, payable to the order of the registered Debentureholder appearing
on the register maintained by the Borrower not later than the close of business on the 5th Business Day prior to the
applicable Interest Payment Date. If payment of interest is make by prepaid ordinary mail it shall be sent to the Debentureholder’s
last address appearing on the register, unless such Debentureholder otherwise directs.

 

Section
2.4 Rank

 

The
Debentures will constitute direct unsecured obligations of the Borrower. Each Debenture will rank pari passu with each
other Debenture in right of payment of unsecured principal and interest (regardless of their actual date or terms of issue).

 

Section
2.5 [Warrants

 

Upon
issuance of this Debenture, the Borrower shall issue to the Debentureholder warrants to acquire that number of Common Shares of
the Borrower (“Warrants”) equal to 40% of the number of Common Shares issuable upon the conversion of the Debenture,
at an exercise price per share equal to $● for a period of thirty-six (36) months from the Closing Date, subject to adjustment
in certain events as set out in the certificate for the Warrants. For greater certainty, the issuance of the Warrants to the Debentureholder
are the warrants to be received by the Lender under the terms of the subscription agreement between the Debentureholder and the
Borrower in respect of the Offering and is a condition of the purchase of the Debentures.]

 

ARTICLE
3 – REDEMPTION OR PURCHASE OF DEBENTURE

 

Section
3.1 Redemption, Exchange or Conversion if Change of Control

 

(1)
The Borrower shall notify the Debentureholder of a pending Change of Control in accordance with Section 3.2 and the Debentureholder
shall, in its sole discretion, have the right to require the Borrower to either (i) purchase the Debentures at 104% of the then
outstanding Principal Amount thereof plus accrued and unpaid interest to the date such Debenture is repaid in full; (ii) if the
Change of Control results in a new issuer, convert the Debenture into a replacement debenture of the new issuer in the aggregate
principal amount of 104% of the Principal Amount of the Debenture then outstanding on substantially equivalent terms to those
terms contained herein; or (iii) convert the Debentures at the Conversion Price.

 

    	A - 4

     

    

 

(2)
If 90% or more of the Principal Amount of the Debentures outstanding on the date of the notice of the Change of Control have been
tendered for redemption or conversion pursuant to Section 3.1(1), the Borrower will have the right to either redeem all of the
remaining Debentures at 104% of the then outstanding Principal Amount thereof plus accrued and unpaid interest to the date such
Debenture is redeemed in full.

 

Section
3.2 Notice of Change of Control

 

Upon
the occurrence of any event constituting or reasonably likely to constitute a Change of Control or Merger, the Borrower shall
give written notice to the Lender of such Change of Control or Merger at least thirty (30) days or as soon as reasonably possible
prior to the effective date of any such Change of Control or Merger and another written notice on or immediately after the effective
date of such Change of Control or Merger.

 

Section
3.3 Purchases for Cancellation

 

The
Borrower will have the right at any time and from time to time to purchase the Debentures in the market, by tender, or by private
contract.

 

ARTICLE
4 – CONVERSION

 

Section
4.1 Conversion Right.

 

(1)
Upon and subject to the terms and conditions hereinafter set forth, the Lender shall have the right (the “Conversion
Right”), but not the obligation, at any time, and from time to time, up to and including the Business Day immediately
preceding the Maturity Date, to notify the Borrower that it wishes to convert, for no additional consideration, all or any part
of the Principal Amount of this Debenture (the “Converted Debenture Amount”) into that number of fully paid
and non-assessable Common Shares that is equal to the Principal Amount of the Debenture divided by the Conversion Price in effect
on the Issue Date (as hereinafter defined), provided that the Lender must convert the Principal Amount of this Debenture in a
minimum amount of $250,000, unless the principal amount remaining is less than $250,000 in which case, the entire remaining amount
shall be converted. For greater certainty, if the Lender is electing to convert all or a portion of the Principal Amount, then
the applicable amount of accrued and unpaid interest on the Principal Amount being converted must be paid by the Borrower up to,
but excluding, the applicable date of conversion (the “Conversion Date”) in accordance with Section 2.2.

 

(2)
Commencing on the date that is four months plus one day following the Closing Date, upon and subject to the terms and conditions
hereinafter set forth, the Borrower shall have the right (the “Accelerated Conversion Right”), at any time
prior to the Maturity Date, to require the Debentureholder to convert all but not less than all of the outstanding Principal Amount
of the Debenture if, for any ten (10) consecutive trading days commencing on the date that is four months plus one day following
the Closing Date and prior to the Maturity Date (the “VWAP Days”), the VWAP of the Common Shares on the Exchange
is greater than $● in each VWAP Day over the period. For greater certainty, VWAP Days shall not include any trading day
on which the Common Shares issuable upon such conversion would be subject to restrictions on resale in Canada upon conversion
of this Debenture. Notwithstanding the foregoing, the Borrower shall not be permitted to force conversion of this Debenture if
the Common Shares issuable upon such conversion will be subject to restrictions on resale in Canada, other than restrictions on
resale imposed by a subsequent transfer of the Debentures during the restricted period.

 

(3)
The Conversion Right and Accelerated Conversion Right shall extend only to the maximum number of whole Common Shares into which
the outstanding Principal Amount of the Debenture or any part thereof may be converted in accordance with this Section 4.1. Fractional
interests in Common Shares shall be adjusted in the manner provided in Section 4.4.

 

Section
4.2 Conversion Procedure

 

(1)
The Conversion Right may be exercised by the Lender by completing and signing the notice of conversion (the “Conversion
Notice”) attached hereto as Schedule B, and delivering the Conversion Notice and this Debenture to the Borrower. The
Conversion Notice shall provide that the Conversion Right is being exercised, shall specify the Canadian dollar equivalent of
the outstanding Principal Amount being converted, and shall set out the date (the “Issue Date”) on which Common
Shares are to be issued to be paid upon the exercise of the Conversion Right (such date to
be no earlier than five (5) Business Days and no later than ten (10) Business Days after the day on which the Conversion Notice
is issued). The conversion shall be deemed to have been effected immediately prior to the close of business on the Issue Date
and the Common Shares issuable upon conversion shall be deemed to be issued as fully paid and non-assessable at such time. On
the Issue Date, the required number of Common Shares shall be issued to the Lender. If less than all of the Principal Amount of
this Debenture is the subject of the Conversion Right, then on the Issue Date, the Borrower shall deliver to the Lender a replacement
Debenture in the form hereof in the principal amount of the unconverted principal balance hereof, and this Debenture shall be
cancelled. If the Conversion Right is being exercised in respect of the entire Principal Amount of this Debenture, this Debenture
shall be cancelled. With the Conversion Notice, the Lender shall provide the Borrower with its written calculation of the amount
of accrued and unpaid interest on the Principal Amount which is the subject of the Conversion Right pursuant to the Conversion
Notice, up to the date of that Conversion Notice and a per diem amount thereon.

 

    	A - 5

     

    

 

(2)
The Accelerated Conversion Right may be exercised by the Borrower by delivering at least 30 days’ advance written notice
(the “Accelerated Conversion Notice”) to the Lender. The Accelerated Conversion Notice shall provide that the
Accelerated Conversion Right is being exercised, shall specify that all but not less than all of the Canadian dollar equivalent
of the outstanding Principal Amount is being converted, shall specify the ten (10) consecutive VWAP Days and daily trading volume
on the Exchange on which the VWAP of the Common Shares exceeded $● and shall set out the date (the “Accelerated
Issue Date”) on which Common Shares are to be issued upon the exercise of the Accelerated Conversion Right (such date
to be no earlier than 30 days and no later than 35 days after the day on which the Accelerated Conversion Notice is issued, unless
otherwise mutually agreed by the Borrower and the Lender). The conversion shall be deemed to have been effected immediately prior
to the close of business on the Accelerated Issue Date and the Common Shares issuable upon conversion shall be deemed to be issued
as fully paid and non-assessable at such time. Within ten (10) Business Days after the Accelerated Issue Date, provided a certificate
or direct registration statement for the required number of Common Shares has been issued to the Lender this Debenture shall be
cancelled. With the Accelerated Conversion Notice, the Borrower shall provide the Lender with its written calculation of the amount
of accrued and unpaid interest on the Principal Amount which is the subject of the Accelerated Conversion Right pursuant to the
Accelerated Conversion Notice, up to the date of that Accelerated Conversion Notice and a per diem amount thereon.

 

Section
4.3 Adjustment of Conversion Price

 

The
Conversion Price in effect at any date shall be subject to adjustment from time to time as follows:

 

(1)
If and whenever at any time prior to the Maturity Date, the Borrower shall:

 

	 	(a)	subdivide
    or re-divide the outstanding Common Shares into a greater number of Common Shares;
	 	 	 
	 	(b)	reduce,
    combine or consolidate the outstanding Common Shares into a smaller number of Common Shares;
	 	 	 
	 	(c)	issue
    Common Shares (or securities convertible into or exchangeable for Common Shares) to the holders of all or substantially all
    of the outstanding Common Shares by way of stock dividend other distribution; or
	 	 	 
	 	(d)	make
    a distribution on its outstanding Common Shares payable in Common Shares or securities exchangeable for or convertible into
    Common Shares,

 

the
Conversion Price in effect on the effective date of such subdivision, re-division, reduction, combination or consolidation or
on the record date for such issue of Common Shares (or securities convertible into or exchangeable for Common Shares) by way of
a stock dividend or other distribution, as the case may be, shall, in the case of the events referred to in Sections 4.3(1)(a),
(c) and (d) above, be decreased in proportion to the increase in the number of outstanding Common Shares resulting from such subdivision,
re-division or dividend (including, in the case where securities convertible into or exchangeable for Common Shares are issued,
the number of Common Shares that would have been outstanding had such securities been converted into or exchanged for Common Shares
on such effective or record date) or shall, in the case of the events referred to in Section 4.3(1)(b) above, be increased in
proportion to the decrease in the number of outstanding Common Shares resulting from such reduction, combination or consolidation
on such effective or record date. Such adjustment shall be made successively whenever any event referred
to in this Section 4.3(1) shall occur. Any such issue of Common Shares (or securities convertible into or exchangeable for Common
Shares) by way of a stock dividend or other distribution shall be deemed to have been made on the record date for the stock dividend
or other distribution for the purpose of calculating the number of outstanding Common Shares under Sections 4.3(2) and (3); to
the extent that any such securities are not converted into or exchanged for Common Shares prior to the expiration of the conversion
or exchange right, the Conversion Price shall be readjusted effective as at the date of such expiration to the Conversion Price
which would then be in effect based upon the number of Common Shares actually issued on the exercise of such conversion or exchange
right.

 

    	A - 6

     

    

 

(2)
If and whenever at any time prior to the Maturity Date, the Borrower shall fix a record date for the issuance of rights, options
or warrants to all or substantially all the holders of its outstanding Common Shares entitling them, for a period expiring not
more than forty-five (45) days after such date of issue (such period from the record date to the date of expiry being referred
to in this Section 4.3(2) as the “Rights Period”), to subscribe for or purchase Common Shares (or securities
convertible into or exchangeable for Common Shares) (such subscription price per Common Share (inclusive of any cost of acquisition
of securities exchangeable for or convertible into Common Shares in addition to any direct cost of Common Shares) being referred
to in this Section 4.3(2) as the “Per Share Cost”), the Borrower shall give written notice to the Lender with
respect thereto (any of such events herein referred to as a “Rights Offering”), and the Lender shall have fifteen
(15) days after receipt of such notice to elect to convert any or all of the Principal Amount of this Debenture into Common Shares
at the then applicable Conversion Price and otherwise on terms and conditions set out in this Debenture. If the Lender elects
to convert any or all of the Principal Amount of this Debenture, such conversion shall occur immediately prior to the record date
for the issuance of such rights, options or warrants. If the Lender elects not to convert any of the Principal Amount of this
Debenture, there shall continue to be an adjustment to the Conversion Price as a result of the issuance of such rights, options
or warrants, in the manner hereinafter provided. The Conversion Price will be adjusted effective immediately after the end of
the Rights Period to a price determined by multiplying the Conversion Price in effect immediately prior to the end of the Rights
Period by a fraction:

 

	 	(a)	the
    numerator of which is the aggregate of:
	 	 	 	 	 
	 	 	(i)	the
    number of Common Shares outstanding as of the record date for the Rights Offering; and
	 	 	 	 	 
	 	 	(ii)	the
    number determined by dividing the product of the Per Share Cost and:
	 	 	 	 	 
	 	 	 	(A)	where
    the event giving rise to the application of this Section 4.3(2) was the issue of rights, options or warrants to the holders
    of Common Shares under which such holders are entitled to subscribe for or purchase additional Common Shares, the number of
    Common Shares so subscribed for or purchased during the Rights Period, or
	 	 	 	 	 
	 	 	 	(B)	where
    the event giving rise to the application of this Section 4.3(2) was the issue of rights, options or warrants to the holders
    of Common Shares under which such holders are entitled to subscribe for or purchase securities exchangeable for or convertible
    into Common Shares, the number of Common Shares for which those securities so subscribed for or purchased during the Rights
    Period could have been exchanged or into which they could have been converted during the Rights Period,
	 	 	 	 	 
	 	 	 	by
    the Current Market Price (as hereinafter defined) of the Common Shares as of the record date for the Rights Offering; and
	 	 	 	 	 
	 	(b)	the
    denominator of which is
	 	 	 	 	 
	 	 	(i)	in
    the case described in subparagraph 4.3(2)(a)(ii)(A), the number of Common Shares outstanding, or
	 	 	 	 
	 	 	(ii)	in
    the case described in subparagraph 4.3(2)(a)(ii)(B), the number of Common Shares that would be outstanding if all the Common
    Shares described in subparagraph 4.3(2)(a)(ii)(B) had been issued,

 

as
at the end of the Rights Period.

 

    	A - 7

     

    

 

“Current
Market Price” of the Common Shares at any date, means the volume weighted average trading price at which the Common
Shares have traded on the Exchange or, if the Common Shares are not listed on any stock exchange, then on the over-the-counter
market, for any 20 consecutive trading days selected by the Borrower commencing not later than 45 trading days and ending no later
than five (5) trading days before such date; provided, however, if such Common Shares are not traded during such 45 day period
for at least 20 consecutive trading days, the simple average of the following prices established for each of 20 consecutive trading
days selected by the Borrower commencing not later than 45 trading days before such date:

 

	 	(a)	the
    average of the bid and ask prices for each day on which there was no trading, and
	 	 	 
	 	(b)	the
    closing price of the Common Shares for each day that there was trading,

 

or
in the event that at any date the Common Shares are not listed on the Exchange or on the over-the-counter market, the current
market price shall be as determined by the directors of the Borrower or such firm of independent chartered accountants as may
be selected by the directors of the Borrower, acting reasonably, and in good faith in their sole discretion for these purposes,
the weighted average price for any period shall be determined by dividing the aggregate sale prices during such period by the
total number of Common Shares sold during such period.

 

Any
Common Shares owned by or held for the account of the Borrower or its Subsidiaries or affiliate (as defined in the Securities
Act (Ontario)) of the Borrower will be deemed not to be outstanding for the purpose of any such computation under this Section
4.3(2).

 

If
by the terms of the rights, options or warrants referred to in this Section 4.3(2), there is more than one purchase, conversion
or exchange price per Common Share, the aggregate price of the total number of additional Common Shares offered for subscription
or purchase, or the aggregate conversion or exchange price of the convertible securities so offered, will be calculated for purposes
of the adjustment on the basis of

 

	 	(a)	the
    lowest purchase, conversion or exchange price per Common Share, as the case may be, if such price is applicable to all Common
    Shares which are subject to the rights, options or warrants, and
	 	 	 
	 	(b)	the
    average purchase, conversion or exchange price per Common Share, as the case may be, if the applicable price is determined
    by reference to the number of Common Shares acquired.

 

To
the extent that any adjustment in the Conversion Price occurs pursuant to this Section 4.3(2) as a result of the fixing by the
Borrower of a record date for the distribution of rights, options or warrants referred to in this Section 4.3(2), the Conversion
Price will be readjusted immediately after the expiration of any relevant exchange, conversion or exercise right to the Conversion
Price which would then be in effect based upon the number of Common Shares actually issued and remaining issuable after such expiration,
and will be further readjusted in such manner upon expiration of any further such right.

 

If
the Lender has exercised its Conversion Right, or the Borrower has exercised the Accelerated Conversion Right, in accordance herewith
during the Rights Period, the Lender will, in addition to the Common Shares to which it is otherwise entitled upon such exercise,
be entitled to that number of additional Common Shares equal to the result obtained when the difference, if any, between the Conversion
Price in effect immediately prior to, and the Conversion Price in effect immediately following the end of such Rights Offering
pursuant to this Section 4.3(2), is multiplied by the number of Common Shares received upon the exercise of the Conversion Right
or Accelerated Conversion Right during such period, and the resulting product is divided by the Conversion Price as adjusted for
such Rights Offering pursuant to this Section 4.3(2); provided that no fractional Common Shares will be issued. Such additional
Common Shares will be deemed to have been issued to the Lender immediately following the end of the Rights Period and a certificate
for such additional Common Shares will be delivered to the Lender within ten Business Days following the end of the Rights Period.

 

    	A - 8

     

    

 

(3)
If and whenever at any time prior to the Maturity Date, the Borrower shall fix a record date for the making of a distribution
to all or substantially all the holders of its outstanding Common Shares of (i) shares of any class other than Common Shares (or
other than securities convertible into or exchangeable for Common Shares), or (ii) rights, options or warrants (other than rights,
options or warrants referred to in Section 4.3(2)), or (iii) evidences of its indebtedness, or (iv) assets (other than dividends
paid in the ordinary course) then, in each such case, the Borrower shall give written notice to the Lender with respect thereto,
and the Lender shall have fifteen (15) days after receipt of such notice to elect to convert any or all of the Principal Amount
of this Debenture into Common Shares at the then applicable Conversion Price and otherwise on terms and conditions set out in
this Debenture. If the Lender elects to convert any or all of the Principal Amount of this Debenture, such conversion shall occur
immediately prior to the record date for the making of such distribution. If the Lender elects not to convert any of the Principal
Amount of this Debenture, there shall continue to be an adjustment to the Conversion Price as a result of the making of such distribution,
(herein referred to as a “Special Distribution”) determined in the manner hereafter set out. In this Section
4.3(3) the term “dividends paid in the ordinary course” shall include the value of any securities or other
property or assets distributed in lieu of cash dividends paid in the ordinary course at the option of shareholders.

 

The
Conversion Price will be adjusted effective immediately after such record date to a price determined by multiplying the Conversion
Price in effect on such record date by a fraction:

 

	 	(a)	the
    numerator of which is:
	 	 	 	 
	 	 	(i)	the
    product of the number of Common Shares outstanding on such record date and the Current Market Price of the Common Shares on
    such record date; less
	 	 	 	 
	 	 	(ii)	the
    aggregate fair market value (as determined by action of the directors of the Borrower, acting reasonably) to the holders of
    the Common Shares of such securities or property or other assets so issued or distributed in the Special Distribution; and
	 	 	 	 
	 	(b)	the
    denominator of which is the number of Common Shares outstanding on such record date multiplied
    by the Current Market Price of the Common Shares on such record date.

 

Any
Common Shares owned by or held for the account of the Borrower or its Subsidiaries or affiliate (as defined in the Securities
Act (Ontario)) of the Borrower will be deemed not to be outstanding for the purpose of any such computation.

 

(4)
In the case of any reclassification of, or other change in, the outstanding Common Shares pursuant to a Merger, if the Lender
elects not to redeem this Debenture in accordance with Section 3.1, the Lender may elect, prior to the effective date of such
Merger, to convert any or all of the Principal Amount of this Debenture into Common Shares at the then applicable Conversion Price
and otherwise on terms and conditions set out in this Debenture. To exercise such right the Lender must provide a notice in writing
to the Borrower no later than seven (7) days prior to the effective date of such Merger, failing which the Lender’s right
to convert this Debenture as a consequence of such Merger shall cease. If the Lender elects to convert any or all of the Principal
Amount of this Debenture, such conversion shall occur immediately prior to the effective date of such Merger. If the Lender elects
not to convert any of the Principal Amount of this Debenture, the Conversion Price in effect after the effective date of such
Merger shall be increased or decreased, as the case may be, in proportion to any decrease or increase in the number of outstanding
Common Shares resulting from such Merger so that the Lender, upon exercising the Conversion Right or upon the Accelerated Conversion
Right being exercised after the effective date of such Merger, will be entitled to receive the aggregate number of Common Shares
or other securities, if any, which the Lender would have been entitled to receive as a result of such Merger if, on the effective
date thereof, the Lender had been the registered holder of the number of Common Shares to which the Lender was theretofore entitled
upon exercise of the Conversion Right or Accelerated Conversion Right.

 

    	A - 9

     

    

 

(5)
In the case of any reclassification of, or other change in, the outstanding Common Shares (other than a change referred to in
Section 4.3(1), Section 4.3(2), Section 4.3(3) or 4.3(4) hereof), the Conversion Price shall be adjusted in such manner, if any,
and at such time, as the Board of Directors of the Borrower determines to be appropriate on a basis consistent with the intent
of this Section 4.3; provided that if at any time a dispute arises with respect to adjustments provided for in this Article 4,
such dispute will be conclusively determined by the auditors of the Borrower or if they are unable or unwilling to act, by such
other firm of independent chartered accountants as may be selected by action of directors of the Borrower, acting reasonably,
and any such determination will be binding on the Borrower and the Lender. The Borrower will provide such auditors or accountants
with access to all necessary records of the Borrower. If and whenever at any time after the date hereof there is a reclassification
or redesignation of the Common Shares outstanding at any time or change of the Common Shares into other shares or into other securities
(other than as set out in Section 4.3(1), (2), (3) or (4)), or a consolidation, amalgamation or Merger of the Borrower with or
into any other corporation or other entity (other than a consolidation, amalgamation or Merger which does not result in any reclassification
or redesignation of the outstanding Common Shares or a change of the Common Shares into other shares and other than as set forth
in Section 4.3(4)), or a transfer of the undertaking or assets of the Borrower as an entirety or substantially as an entirety
to another corporation or other entity (any of such events being called a “Capital Reorganization”), the Lender,
upon the exercise of the Conversion Right or Accelerated Conversion Right, after the effective date of such Capital Reorganization,
will be entitled to receive in lieu of the number of Common Shares to which the Lender was theretofore entitled upon such exercise,
the aggregate number of shares, other securities or other property, if any, which the Lender would have been entitled to receive
as a result of such Capital Reorganization if, on the effective date thereof, the Lender had been the registered holder of the
number of Common Shares to which such Lender was theretofore entitled upon exercise of the Conversion Right or Accelerated Conversion
Right. If determined appropriate by action of the directors of the Borrower, appropriate adjustments will be made as a result
of any such Capital Reorganization in the application of the provisions set forth in this Section 4.3 with respect to the rights
and interests thereafter of the Lender to the end that the provisions set forth in this Section 4.3 will thereafter correspondingly
be made applicable as nearly as may reasonably be in relation to any shares, other securities or other property thereafter deliverable
upon the exercise of the Conversion Right or Accelerated Conversion Right. Any such adjustment must be made by and set forth in
an amendment to this Debenture approved by action of the directors of the Borrower, acting reasonably, and will for all purposes
be conclusively deemed to be an appropriate adjustment.

 

(6)
In any case in which this Section 4.3 shall require that an adjustment shall become effective immediately after a record date
for an event referred to herein, the Borrower may defer, until the occurrence of such event, issuing to the Lender before the
occurrence of such event, the additional Common Shares issuable upon such conversion by reason of the adjustment required by such
event before giving effect to such adjustment; provided, however, that the Borrower shall deliver to the Lender an appropriate
instrument evidencing the Lender’s right to receive such additional Common Shares upon the occurrence of the event requiring
such adjustment and the right to receive any distributions made on such additional Common Shares declared in favour of holders
of record of Common Shares on and after the Issue Date or such later date as the Lender would, but for the provisions of this
Section 4.3(6), have become the holder of such additional Common Shares pursuant to Section 4.3(2).

 

(7)
The adjustments provided for in this Section 4.3 are cumulative and shall apply to successive
subdivisions, redivisions, reductions, combinations, consolidations, distributions, issuances or other events resulting in any
adjustment under the provisions of this Section, provided that, notwithstanding any other provision of this Section, no adjustment
of the Conversion Price shall be required unless such adjustment would require an increase or decrease of at least 1% in the Conversion
Price then in effect; provided, however, that any adjustments which by reason of this Section 4.3(7) are not required to be made
shall be carried forward and included in any subsequent adjustment.

 

Section
4.4 No Requirement to Issue Fractional Common Shares

 

The
Borrower shall not be required to issue fractional Common Shares upon the conversion of the Debenture pursuant to this Article
4. If any fractional interest in a Common Share, would, except for the provisions of this Section 4.4, be deliverable upon the
conversion of any amount hereunder, the number of Common Shares to be issued shall be rounded down to the nearest whole Common
Share.

 

Section
4.5 Borrower to Reserve Common Shares

 

The
Borrower covenants with the Lender that it will at all times reserve and keep available out of its authorized Common Shares, solely
for the purpose of issue upon exercise of the Conversion Right or Accelerated Conversion Right, and conditionally allot to the
Lender, such number of Common Shares as shall then be issuable upon the conversion of this Debenture. The Borrower covenants with
the Lender that all Common Shares which shall be so issuable shall be duly and validly issued as fully paid and non-assessable
upon issuance.

 

    	A - 10

     

    

 

Section
4.6 Certificate as to Adjustment

 

The
Borrower shall from time to time, immediately after the occurrence of any event which requires an adjustment or readjustment as
provided in Section 4.3, deliver an officer’s certificate to the Lender specifying the nature of the event requiring the
same and the amount of the adjustment necessitated thereby and setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based. Subject to the dispute resolution procedure in subsection 4.3(5), such certificate
shall be binding and determinative of the adjustment to be made, absent manifest error.

 

Section
4.7 Shareholder of Record

 

For
all purposes, on the Issue Date the Lender shall be deemed to have become the holder of record of the Common Shares into which
the Principal Amount of this Debenture (or a portion thereof) is converted in accordance with Section 4.2.

 

Section
4.8 Resale Restrictions, Legending and Disclosure

 

By
its acceptance hereof the Lender acknowledges that this Debenture and the Common Shares issuable upon conversion hereof will be
subject to certain resale restrictions under applicable securities laws, and the Lender agrees to comply with all such restrictions
and laws. The Lender further acknowledges and agrees that all Common Share certificates will bear the legend substantially in
the form set forth on the face page hereof as well as any legends required by the Exchange, provided that such legend shall not
be required on Common Share certificates issued at any time following four months plus one day from the Closing Date. The Lender
acknowledges that the Borrower will be required to provide to the applicable securities regulatory authorities the identity and
other personal information of the Lender and its principals and the Lender hereby agrees thereto.

 

ARTICLE
5 – RIGHTS OF DEBENTUREHOLDER

 

Section
5.1 Distribution on Dissolution, Etc.

 

Subject
to applicable law and the rights of any holders of any debt ranking rateably or in priority to the Lender, upon any sale, in one
transaction or a series of transactions, of all, or substantially all, of the assets of the Borrower or distribution of the assets
of the Borrower upon any dissolution or winding-up or total liquidation of the Borrower, whether in bankruptcy, liquidation, re-organization,
insolvency, receivership or other similar proceedings or upon an assignment to or for the benefit of creditors of the Borrower
or otherwise any payment or distribution of assets of the Borrower, whether in cash, property or security, shall be paid or delivered
by the trustee in bankruptcy, receiver, assignee of or for the benefit of creditors or other liquidating agent of the Borrower
making such payment or distribution, directly to the holder of the Debentures or their representatives, to the extent necessary,
to pay all obligations pursuant to the Debentures in full.

 

Section
5.2 Certificate Regarding Creditors

 

Upon
any payment or distribution of assets of the Borrower referred to in this Section 5.2, the Debentureholder shall be entitled to
rely upon a certificate of the trustee in bankruptcy, receiver, assignee of or for benefit of creditors or other liquidating agent
of the Borrower making such payment or distribution, delivered to the Debentureholder, for the purpose of ascertaining the persons
entitled to participate in such distribution, and other indebtedness of the Borrower, the amount thereof or payable thereon, the
amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Section 5.2.

 

Section
5.3 Rights of Debentureholder Reserved

 

Nothing
contained in this Article 5 or elsewhere in this Debenture is intended to or shall impair, as between the Borrower and the Debentureholder,
the obligation of the Borrower, which is absolute and unconditional, to pay to the Debentureholder the Principal Amount and interest
on the Debenture, as and when the same shall become due and payable in accordance with their terms, nor shall anything herein
prevent the Debentureholder from exercising all remedies otherwise permitted by applicable law upon default under this Debenture.

 

    	A - 11

     

    

 

Section
5.4 Payment of Debenture Permitted 

 

	 	Nothing
    contained in this Debenture shall:
	 	 	 
	 	(a)	prevent
    the Borrower from making payments of the Principal Amount, interest and other amounts to the Debentureholder under this Debenture
    as herein provided;
	 	 	 
	 	(b)	prevent
    the conversion of this Debenture into Common Shares as herein provided or as otherwise permitted according to law, including
    in connection with a bankruptcy, reorganization, insolvency, or other arrangement with creditors, of the Borrower; and
	 	 	 
	 	(c)	prevent
    the redemption of this Debenture by the Borrower as herein provided or as otherwise permitted according to law.

 

Section
5.5 Debentures to Rank Pari Passu

 

The
Debentures issued by the Borrower, once issued and granted, rank pari passu with each other and each Debentureholder shall
be equally and proportionately entitled to the benefits hereof as if all of the Debentures had been issued, granted and negotiated
simultaneously.

 

ARTICLE
6 – COVENANTS OF THE BORROWER

 

Section
6.1 Positive Covenants

 

The
Borrower covenants and agrees that:

 

(1)
Maintain Corporate Existence. The Borrower shall and shall use its commercially reasonable efforts to cause its Material Subsidiaries
to maintain its corporate existence, and preserve its rights, powers, licenses and privileges which are necessary or material
to the conduct of its business, and not materially change the nature of its business;

 

(2)
Compliance with Laws. Other than in respect of US Cannabis Laws, each of the Borrower and its Material Subsidiaries shall
comply and conduct the Business in compliance in all material respects with all applicable laws, rules, governmental restrictions
and regulations, including, without limitation, with respect to cannabis related activities, in compliance with applicable state
and local law in the United States.

 

(3)
Maintain Books and Records. The Borrower shall, and shall cause each of its Material Subsidiaries to, keep adequate and accurate
records and books of account in which complete entries will be made reflecting all financial transactions, and shall prepare its
financial statements in accordance with generally accepted accounting principles;

 

(4)
Payment of Taxes. Each of the Borrower and its Subsidiaries shall pay and discharge promptly all Taxes assessed or imposed
upon it or its property as and when the same become due and payable save and except where it contests in good faith the validity
thereof by proper legal proceedings;

 

(5)
Payment of Obligations. The Borrower shall pay all principal, interest and other amounts owing to the Lender hereunder promptly
when due;

 

(6)
Performance of Covenants. The Borrower shall promptly perform and satisfy all covenants and obligations to be performed by
it under this Debenture;

 

(7)
Insurance. Each of the Borrower and its Material Subsidiaries shall maintain insurance with respect to its properties and
business against such casualties and contingencies, of such types, on such terms and in such amounts as is customary in the case
of entities engaged in the same or a similar business and similarly situated;

 

    	A - 12

     

    

 

(8)
Maintain Listing. The Borrower shall use reasonable commercial efforts to maintain the listing of the Common Shares on the
Exchange and to maintain the Borrower’s status as a “reporting issuer” not in default of the requirements of
Canadian Securities Laws; and

 

(9)
Notice of Event of Default. The Borrower shall promptly, and in any event within five (5) Business Days after a responsible
officer of the Borrower becoming aware, give notice to the Lender of the existence of any Event of Default.

 

Section
6.2 Negative Covenants

 

The
Borrower covenants and agrees that, without the prior written consent of the Lender:

 

(1)
Distributions. If an Event of Default is continuing, the Borrower shall not declare, pay or make any dividend or other
distribution on any shares in the capital of the Borrower or authorize the repurchase of any shares in the capital of the Borrower;

 

(2)
Related Party Transactions. The Borrower shall not enter into any contract or transaction with any related party except
for the purchase or sale of goods or services at fair market value and except for the issuance of securities of the Borrower on
the same terms as offered to non-related parties, except for management compensation arrangements that are approved by independent
members of the board of directors of the Borrower;

 

(3)
Dispositions. Subject to Section 6.2(5), none of the Borrower or any of its Subsidiaries shall sell, transfer or otherwise
dispose of any property (including shares of Subsidiaries), other than:

 

	 	(a)	obsolete
    or worn-out property no longer used in the Business;
	 	 	 
	 	(b)	inventory,
    receivables or other property sold or disposed of in the ordinary course of business at fair market value; or
	 	 	 
	 	(c)	provided
    that no Event of Default is continuing on the date of such sale or would occur as a result of such sale:
	 	 	 	 
	 	 	(i)	property
    (including shares of Subsidiaries) sold or disposed of to Persons at arm’s length to the Borrower; or
	 	 	 	 
	 	 	(ii)	property
    (including shares of Subsidiaries) sold or disposed of for fair market value to Persons that are non-arm’s length to
    the Borrower;

 

For
greater certainty, this Section 6.2(3) shall not in any way restrict the Borrower or any of the Subsidiaries from (A) issuing
Common Shares or securities convertible into Common Shares or (B) incurring or assuming any debt, in either case at any time and
from time to time after the date hereof;

 

(4)
Change in Nature of Business. The Borrower shall not, nor will it permit any of its Subsidiaries to, engage to any material
respect in any lines of business other than the Business conducted by the Borrower and its Subsidiaries at the date hereof;

 

(5)
Mergers. The Borrower shall not enter into any Merger, other than the announced acquisition of Verano Holdings, LLC or
any transactions contemplated to be completed in order to effect such acquisition, unless:

 

	 	(a)	(i)
    in the event of a Change of Control where the Lender has exercised its right to convert the Debenture into a replacement debenture
    of a new issuer pursuant to Section 3.1, or (ii) in the event of a Merger that does not constitute a Change of Control, the
    continuing corporation or other entity formed by the applicable consolidation, amalgamation or merger, or the Person that
    acquires by transfer, sale or lease all or substantially all of the assets of the Borrower, as the case may be, executes and
    delivers to the Lender its assumption in writing of the due and punctual performance and observance of each covenant and condition
    of this Debenture; and
	 	 	 
	 	(b)	no
    Event of Default is continuing on the date of such transaction or would occur as a result of such transaction.

 

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ARTICLE
7 – EVENTS OF DEFAULT

 

Section
7.1 Events of Default

 

(1)
Any of the following shall constitute an Event of Default under this Debenture (each an “Event of Default”):

 

	 	(a)	the
    Principal Amount owing hereunder shall not be paid when due;
	 	 	 
	 	(b)	if
    the Borrower fails to pay when due any interest or other amount owing by the Borrower to the Lender;
	 	 	 
	 	(c)	if
    the Borrower breaches any representation contained herein, fails to make any payment or to observe, perform or comply with
    any term, covenant, condition or obligation of the Borrower contained herein or is otherwise in default of any of the provisions
    contained herein (other than as referred to in subparagraphs (a) and (b) of this Section 7.1) and such default, if capable
    of being remedied, is not remedied within ten (10) days after the Borrower receives written notice of such default from the
    Lender;
	 	 	 
	 	(d)	if
    the Borrower shall generally fail to pay, or admit in writing its inability or unwillingness to pay, debts as they become
    due or if a decree or order of a court having jurisdiction is entered adjudging the Borrower a bankrupt or insolvent;
	 	 	 
	 	(e)	if
    the Borrower shall apply for, consent to or acquiesce in the appointment of a trustee, receiver, or other custodian for the
    Borrower or for a substantial part of the property thereof, or make a general assignment for the benefit of creditors;
	 	 	 
	 	(f)	if
    the Borrower shall in the absence of such application, consent or acquiescence, become subject to the appointment of a trustee,
    receiver, or other custodian for the Borrower or for a substantial part of the property thereof, or have a distress, execution,
    attachment, sequestration or other legal process levied or enforced on or against a substantial part of the property of the
    Borrower;
	 	 	 
	 	(g)	if
    the Borrower shall permit or suffer to exist the commencement of any bankruptcy, reorganization, debt arrangement or other
    case or proceeding under any bankruptcy or insolvency law, or any dissolution, winding up or liquidation proceeding, in respect
    of the Borrower and, if any such case or proceeding is not commenced by the Borrower, such case or proceeding, if contested
    by the Borrower is not dismissed within thirty (30) days; or
	 	 	 
	 	(h)	any
    notes, debentures, bonds or other indebtedness for money borrowed having an aggregate principal amount of at least $15 million
    (or its equivalent in any other currency or currencies determined at the then current exchange rate) or more (hereinafter
    called “Indebtedness”) of the Borrower shall become prematurely repayable following default, or steps are
    taken to enforce any security therefor, or the Borrower defaults in the repayment of any such Indebtedness at the maturity
    thereof or (in the case of Indebtedness due on demand) on demand, or, in either case, at the expiration of any applicable
    grace period therefor, (if any) or any guarantee of or indemnity in respect of any Indebtedness of others given by the Borrower
    shall not be honored when due and called upon; or
	 	 	 
	 	(i)	the
    Borrower extends or maintains outstanding any loans, advances, guarantees, (direct or indirect) or other financial support
    to any insider (as defined in the Securities Act (Ontario)) outside of the Borrower’s ordinary course of business.

 

(2)
If an Event of Default described in (e), (f) or (g) shall occur, the entire unpaid Principal Amount of this Debenture, and accrued
interest on this Debenture shall become immediately due and payable without any declaration or other act on the part of the Lender.
Immediately upon the occurrence of any Event of Default described in (e), (f) or (g), or upon failure to pay this Debenture on
the Maturity Date, the Lender, upon notice to the Borrower, may proceed to protect, enforce, exercise and pursue any and all rights
and remedies available to the Lender under this Debenture, at law or in equity.

 

    	A - 14

     

    

 

(3)
If any other Event of Default shall occur for any reason, whether voluntary or involuntary, and be continuing, the Lender may
by notice to the Borrower declare all or any portion of the outstanding Principal Amount of this Debenture and accrued interest
on this Debenture to be due and payable, whereupon the full unpaid amount of this Debenture which shall be so declared due and
payable shall be and become immediately due and payable without further notice, demand or presentment.

 

ARTICLE
8 – MUTILATION, LOSS, THEFT OR DESTRUCTION OF DEBENTURE CERTIFICATE

 

In
case this Debenture certificate shall become mutilated or be lost, stolen or destroyed, the Borrower, shall issue and deliver,
a new replacement Debenture certificate upon surrender and cancellation of the mutilated Debenture certificate or, in the case
of a lost, stolen or destroyed Debenture certificate, in lieu of and in substitution for the same. In the case of loss, theft
or destruction, the applicant for a substituted Debenture certificate shall furnish to the Borrower such evidence of the loss,
theft or destruction of the Debenture certificate as shall be satisfactory to the Borrower in its discretion and shall also furnish
an indemnity and surety bond satisfactory to the Borrower in its discretion. The applicant shall pay all reasonable expenses incidental
to the issuance of any substituted Debenture certificate.

 

ARTICLE
9 – GENERAL

 

Section
9.1 Notice

 

Any
demand, notice, direction or other communication to be made or given hereunder (in each case, “Communication”)
shall be in writing and shall be made or given by personal delivery, by courier, by facsimile or email transmission, or sent by
registered mail, charges prepaid, addressed to the respective parties as follows:

 

(a)
if to the Borrower:

 

Harvest
Health & Recreation, Inc.

1155
W. Rio Salado Parkway

Suite
201

Tempe,
Arizona 85281

 

Attention:
Jason Vedadi, Executive Chairman

Email:
[***]

 

(b)
if to the Lender:

 

[***]

[***]

[***]

[***]

[***]

[***]

 

Attention:
Director

E-mail
: [***]

 

or
to such other address or email address as any party may from time to time designate in accordance with this Section. Any Communication
made by personal delivery or by courier shall be conclusively deemed to have been given and received on the day of actual delivery
thereof or if such day is not a Business Day, on the first Business Day thereafter. Any Communication made or given by email on
a Business Day before 4:00 p.m. (local time of the recipient) shall be conclusively deemed to have been given and received on
such Business Day and otherwise shall be conclusively deemed to have been given and received on the first Business Day following
the transmittal thereof. Any Communication that is mailed shall be conclusively deemed to have been given and received on the
fifth Business Day following the date of mailing but if, at the time of mailing or within five Business Days thereafter, there
is or occurs a labour dispute or other event that might reasonably be expected to disrupt delivery of documents by mail, any Communication
shall be delivered or transmitted by any other means provided for in this Section.

 

    	A - 15

     

    

 

Section
9.2 Merger of Borrower

 

By
its acceptance hereof, each of the Borrower and the Lender acknowledges and agrees that in the event a Merger occurs, and the
Lender exercises its right pursuant to Section 3.1(ii), then all references herein to the Borrower shall extend to and include
the entity resulting therefrom or which thereafter will carry on the Business of the Borrower.

 

Section
9.3 Amendments

 

This
Debenture may not be amended or otherwise modified except by an instrument in writing executed by the Borrower and the Lender.

 

Section
9.4 Waivers

 

The
Lender shall not, by any act, delay, omission or otherwise, be deemed to have expressly or impliedly waived any of its rights,
powers or remedies unless such waiver shall be in writing and executed by an authorized officer of the Lender. Any such waiver
shall be enforceable only to the extent specifically set forth therein. A waiver by the Lender of any right, power and/or remedy
on any one occasion shall not be construed as a bar to or waiver of any such right, power or remedy which the Lender would otherwise
have on any future occasion, whether similar in kind or otherwise.

 

Section
9.5 Registration of Debentures

 

The
Borrower shall cause to be kept at the head office of the Borrower in Vancouver, British Columbia a register in which shall be
entered the name and latest known address of the Lender and any other holders of Debentures. Such register shall at all reasonable
times during regular business hours of the Borrower be open for inspection by the Lender and any such holder. The Borrower shall
not be charged with notice of or be bound to see to the performance of any trust, whether express, implied, or constructive, in
respect of this Debenture and may act on the direction of the Lender, whether named as trustee or otherwise, as though the Lender
were the beneficial owner of this Debenture.

 

Section
9.6 Transfer of Debenture

 

No
transfer of this Debenture shall be valid unless made in accordance with applicable laws, including Canadian Securities Laws.
If the Lender intends to transfer this Debenture or any portion thereof, it shall deliver to the Borrower the transfer form attached
to this Debenture as Schedule C, duly executed by the Lender. Upon compliance with the foregoing conditions and the surrender
by the Lender of this Debenture, the Borrower shall execute and deliver to the applicable transferee a new Debenture registered
in the name of the transferee. If less than the full Principal Amount of this Debenture is transferred, the Lender shall be entitled
to receive, in the same manner, a new Debenture certificate registered in its name evidencing the portion of the Principal Amount
of this Debenture not so transferred. Prior to registration of any transfer of this Debenture, the Lender and the applicable transferee
shall be required to provide the Borrower with necessary information and documents, including certificates and statutory declarations,
as may be required to be filed under applicable laws.

 

Section
9.7 Release and Discharge

 

If
the Lender exercises all conversion rights attached to this Debenture pursuant to Article 4 hereof or if the Borrower pays all
of the Obligations in full to the Lender, the Lender shall release this Debenture and the Borrower shall be, and shall be deemed
to have been discharged of all its obligations under this Debenture. The Lender shall then, at the request of the Borrower, execute
and deliver all such releases and further assurances as may be reasonably required in this regard including, without limitation,
releases and discharges of the Guarantee.

 

    	A - 16

     

    

 

Section
9.8 Successors and Assigns

 

This
Debenture shall enure to the benefit of the Lender and its successors and assigns, and shall be binding upon the Borrower and
its successors and permitted assigns.

 

Section
9.9 Time

 

Time
shall be of the essence of this Debenture.

 

Section
9.10 Governing Law

 

This
Debenture shall be governed by and interpreted in accordance with the laws of the Province of Ontario and the federal laws of
Canada applicable therein. The Borrower and, by its acceptance hereof, the Lender each hereby irrevocably submit and attorn to
the non-exclusive jurisdiction of the courts of the Province of Ontario in connection with this Debenture.

 

Section
9.11 Further Assurances

 

The
Borrower shall forthwith, at its own expense and from time to time, do or file, or cause to be done or filed, all such things
and shall execute and deliver all such documents, agreements, opinions, certificates and instruments reasonably requested by the
Lender or its counsel as may be necessary or desirable to complete the transactions contemplated by this Debenture and carry out
its provisions and intention.

 

    	A - 17

     

    

 

Schedule
B – Conversion Notice

 

TO:
HARVEST HEALTH & RECREATION INC. (the “Borrower”)

 

Pursuant
to the 7.00% Senior Unsecured Convertible Debenture (the “Debenture”) of the Borrower issued to the undersigned
on ●, the undersigned hereby notifies you that
US$ _______________________ of
the principal amount outstanding under the Debenture shall be converted into Common Shares of the Borrower, all in accordance
with the terms of the Debenture
on                               
, 20___. Capitalized terms not otherwise defined herein shall have the meaning given to such terms in the
Debenture.

 

The
certificates representing the Common Shares to be issued shall be registered as follows:

 

	Name	 	Address
    for Delivery	 	#
    of Common Shares
	 	 	 	 	 

 

	 	 
	 	(Print
    name as it is to appear on Share Certificate)

 

DATED
this _____ day of ________________ , 20__ .

 

	 	[NAME]
    
	 	 	      
	 	By:	 
	 	Name: 
    	 
	 	Title:	 

 

    	B - 1

     

    

 

Schedule
C – Form of Transfer

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to:

 

	 	 	 
	 	(Name)	 
	 	 	 
	 	 	 
	 	(Address)	 
	 	 	 
	 	 	 

 

(the
“Transferee”), $ __________________ principal amount of 7.00% Senior Unsecured Senior Convertible Debentures
of HARVEST HEALTH & RECREATION INC. issued on __________________ , 2019 registered in
the name of the undersigned on the register of Debentures and represented by the attached Debenture, and irrevocably appoints
__________________________ as the attorney of the undersigned to transfer to the Transferee the said principal amount of the Debenture
on the books or register of transfer, with full power of substitution.

 

DATED
the _______ day of _________________ , ______ .

 

	 	[NAME]
    
	 	 
	 	By:	    
	 	Name: 	 
	 	Title:	 

 

Note
to Debentureholder: In order to transfer the Debenture, this transfer form must be delivered to Harvest Health & Recreation
Inc.

 

    	 

     

    

 

Schedule
D – Material Subsidiaries

(see
attached)Exhibit 4.3 

 

CERTAIN
CONFIDENTIAL INFORMATION (MARKED BY BRACKETS AS “[***]”) HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I)
NOT MATERIAL AND (II) WOULD BE COMPETITIVELY HARMFUL IF PUBLICLY DISCLOSED.

 

UNLESS
PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE SECURITY BEFORE [THE DATE WHICH IS FOUR
MONTHS AND ONE DAY AFTER THE RELEVANT TRANCHE CLOSING DATE WILL BE INSERTED].

 

FORM
OF 

 

WARRANT
CERTIFICATE

 

●
WARRANTS

TO PURCHASE SUBORDINATE VOTING SHARES OF

HARVEST
HEALTH & RECREATION INC.

 

	Certificate
    No. W-2019-●	[●]

 

THIS
IS TO CERTIFY THAT for value received [●] (the “Holder”) is the registered holder of the number of
Warrants stated above (each a “Warrant” and collectively, the “Warrants”) and is entitled,
from and after the date of issue (the “Issue Date”), for each Warrant represented by this certificate (this
“Warrant Certificate”) to purchase one subordinate voting share (each a “Warrant Share”)
of Harvest Health & Recreation Inc. (the “Corporation”) at a price per Warrant Share equal to [$•]
(the “Exercise Price”), upon and subject to the following terms and conditions.

 

The
Warrants and the Warrant Shares issuable upon the exercise of the Warrants have not been and will not be registered under the
United States Securities Act of 1933 (the “U.S. Securities Act”) or any state securities laws. The Warrants
may not be transferred or exercised in the United States (as defined in Regulation S under the U.S. Securities Act) unless the
Warrants and the Warrant Shares issuable upon exercise of the Warrants have been registered under the U.S. Securities Act and
any applicable state securities laws or unless an exemption from such registration is available and established as set forth in
this Warrant Certificate.

 

TERMS
AND CONDITIONS

 

	1.	At
    any time and from time to time at or prior to 5:00 p.m. (Eastern Time) on the date that is 36 months from the date of issue
    (the “Expiry Time”), the Holder may exercise all or any number of Warrants represented hereby, upon delivering
    the Warrant Certificate to the Corporation at its principal office at 627 S. 48th St. Suite 100, Tempe, AZ, 85281, together
    with a duly completed and executed subscription notice in the form attached hereto as Schedule “A” (the “Subscription
    Notice”) evidencing the election of the Holder to exercise the number of Warrants set forth in the Subscription
    Notice (which shall not be greater than the number of Warrants represented by this Warrant Certificate) and a certified cheque,
    money order or bank draft or other form of payment acceptable to the Corporation in immediately available funds payable to
    the Corporation for the aggregate Exercise Price of all Warrants being exercised. If the Holder is not exercising all Warrants
    represented by this Warrant Certificate, the Holder shall be entitled to receive, without charge, a new Warrant Certificate
    representing the number of Warrants which is the difference between the number of Warrants represented by the then original
    Warrant Certificate and the number of Warrants being so exercised.
	 	 
	2.	The
    Holder shall be deemed to have become the holder of record of the Warrant Shares on the date (the “Exercise Date”)
    on which the Corporation has received a duly completed Subscription Notice, delivery of the Warrant Certificate and payment
    of the full aggregate Exercise Price in respect of the Warrants being exercised pursuant to such Subscription Notice; provided,
    however, that if such date is not a day which is not a Saturday, Sunday or statutory or civic holiday in the City of Toronto,
    Ontario or Phoenix Arizona (each, a “Business Day”) then the Warrant Shares shall be deemed to have been
    issued and the Holder shall be deemed to have become the holder of record of the Warrant Shares on the next following Business
    Day Within two Business Days of the Exercise Date, the Corporation shall issue and deliver (or cause to be delivered) to the
    Holder, by registered mail or pre-paid courier to his, her or its address specified in the Subscription Notice, one or more
    certificates or direct registration statements for the appropriate number of Warrant Shares to which the Holder is entitled
    pursuant to the exercise of Warrants. All costs, expenses and other charges payable in connection with the issue and delivery
    of the Warrant Shares shall be at the sole expense of the Corporation (other than the payment of the aggregate Exercise Price
    and any taxes including withholding tax, if any).

 

    	 	 	 

    	 	- 2 -	 

    

 

	3.	The
    Corporation represents and warrants that: (a) this Warrant Certificate is a legal, valid and binding obligation of the Corporation,
    enforceable against the Corporation in accordance with its terms; and (b) the Warrants have been duly and validly created
    and issued and the Warrant Shares have been reserved and authorized and allotted for issuance to the holders of the Warrants
    and, upon the due exercise of the Warrants in accordance with the provisions of this Warrant Certificate, the Warrant Shares
    will be validly issued as fully paid and non-assessable subordinate voting shares (“Subordinate Voting Shares”)
    in the capital of the Corporation. The Corporation hereby further covenants and agrees that, while any of the Warrants shall
    be outstanding, the Corporation shall (a) comply in all material respects with the securities legislation applicable to it;
    (b) shall use commercially reasonable efforts to do or cause to be done all things necessary to preserve and maintain its
    corporate existence; (c) at its own expense, use its commercially reasonable efforts to maintain its status as a reporting
    issuer (or the equivalent) not in default in the case of each of the provinces and territories of Canada providing for such
    regime and in which the Corporation is a reporting issuer from time to time; and (d) make all requisite filings under applicable
    laws and the policies of any applicable stock exchange in connection with the exercise of the Warrants and issue of Warrant
    Shares.
	 	 
	4.	Nothing
    contained herein shall confer on the Holder or any other person any right to subscribe for or purchase Warrant Shares or any
    other securities of the Corporation at any time after the Expiry Time and, from and after such time, these Warrants and all
    rights hereunder shall be void and of no value.
	 	 
	5.	The
    Holder shall have no rights whatsoever as a shareholder (including any rights to receive dividends or other distribution to
    shareholders or to vote at a meeting of shareholders of the Corporation) other than regarding those Warrant Shares in respect
    of which the Holder shall have exercised its right to purchase hereunder in accordance which the terms of this Warrant Certificate.
	 	 
	6.	Upon
    the receipt of evidence satisfactory to the Corporation of the loss, theft, destruction or mutilation of this Warrant Certificate
    and, if requested by the Corporation, upon delivery of a bond of indemnity satisfactory to the Corporation (or, in the case
    of mutilation, upon surrender of this Warrant Certificate), the Corporation will issue to the Holder a replacement certificate
    representing these Warrants (containing the same terms and conditions as this Warrant Certificate).
	 	 
	7.	The
    Corporation shall not be required to issue fractional Warrant Shares in satisfaction of its obligations hereunder. All fractional
    interests shall be rounded down to the nearest whole number and no amount shall be payable by the Corporation in respect of
    any such fraction of a Warrant Share.
	 	 
	8.	In
    this Warrant Certificate, “Current Market Price” at any date shall mean the weighted average trading price
    per Subordinate Voting Share at which the Subordinate Voting Shares have traded on the principal stock exchange or over-the-counter
    market on which the Subordinate Voting Shares are listed or posted for trading during the 20 consecutive trading days ending
    five trading days prior to the date on which the Current Market Price must be determined or, if the Subordinate Voting Shares
    are not listed on a recognized Canadian stock exchange or an over-the-counter market, the Current Market Price shall be as
    determined by the directors of the Corporation, acting reasonably and in good faith after consultation with a nationally or
    internationally recognized and independent investment dealer, investment banker or firm of chartered accountants. In this
    Section 8, the terms “record date” and “effective date” shall mean as of the close of
    business in Toronto, Ontario on the relevant date.

 

    	 	 	 

    	 	- 3 -	 

    

 

	9.	The
    rights to acquire Warrant Shares in effect at any date attaching to the Warrants are subject to adjustment from time to time
    as follows:

 

	 	(a)	if
    and whenever at any time from the date hereof and prior to the Expiry Time the Corporation fixes a record date in order to:

 

	 	 	(i)	subdivide,
    redivide or change its then outstanding Subordinate Voting Shares into a greater number of outstanding Subordinate Voting
    Shares;
	 	 	 	 
	 	 	(ii)	consolidate,
    reduce or combine its outstanding Subordinate Voting Shares into a smaller number of Subordinate Voting Shares; or
	 	 	 	 
	 	 	(iii)	issue
    Subordinate Voting Shares or securities exchangeable or exercisable for or convertible into Subordinate Voting Shares (collectively,
    “convertible securities”) to the holders of all or substantially all of the outstanding Subordinate Voting
    Shares by way of a stock distribution, stock dividend or otherwise;

 

any
of such events in these clauses (i), (ii) and (iii) being called a “Subordinate Voting Share Reorganization”,
the number of Warrant Shares issuable upon the exercise of each Warrant shall be adjusted on the earlier of the record date on
which holders of Subordinate Voting Shares are determined for the purposes of the Subordinate Voting Share Reorganization and
the effective date of the subdivision, redivision, change, consolidation, reduction or combination or on the record date for the
issue of Subordinate Voting Shares or convertible securities by way of stock distribution, stock dividend or otherwise, by multiplying
the number of Warrant Shares previously issuable upon the exercise of a Warrant by the fraction of which:

 

	 	 	(A)	the
    numerator is the total number of Subordinate Voting Shares outstanding immediately after such record date or effective date,
    or, in the case of the issuance of convertible securities, the total number of Subordinate Voting Shares outstanding immediately
    after such date plus the total number of Subordinate Voting Shares issuable upon conversion, exercise or exchange of such
    convertible securities; and
	 	 	 	 
	 	 	(B)	the
    denominator is the total number of Subordinate Voting Shares outstanding immediately prior to the applicable record date or
    effective date (including in the case of the issue or distribution of securities exchangeable or exercisable or convertible
    into Subordinate Voting Shares the number of Subordinate Voting Shares for or into which such securities may be exchanged,
    exercised, or converted)

 

and
the Exercise Price shall be adjusted at the same time by multiplying the Exercise Price in effect at the time of such event by
the inverse of the aforesaid fraction. The Corporation shall make such adjustment successively whenever any event referred to
in this Section 9(a) occurs and any such issue of Subordinate Voting Shares or convertible securities by way of a stock dividend
is deemed to have occurred on the record date for the stock dividend for the purpose of calculating the number of outstanding
Subordinate Voting Shares under this Section 9(a). Any Subordinate Voting Shares owned by or held for the account of the Corporation
shall be deemed not to be outstanding for the purpose of any such calculation. If the Holder has not exercised its right to subscribe
for and purchase Subordinate Voting Shares on or prior to the record date of the Subordinate Voting Share Reorganization or the
effective date of such Subordinate Voting Share Reorganization as the case may be, upon the exercise of such right thereafter,
the Holder shall be entitled to receive and shall accept in lieu of the number of Warrant Shares then subscribed for and purchased
by the Holder, at the Exercise Price determined in accordance with this Section 9(a), the aggregate number of Subordinate Voting
Shares that the Holder would have been entitled to receive as a result of such Voting Share Reorganization, if, on such record
date or effective date, as the case may be, such Holder had been the holder of record of the number of Subordinate Voting Shares
so subscribed for and purchased.

 

    	 	 	 

    	 	- 4 -	 

    

 

	 	(b)	if
    and whenever at any time from the date hereof and prior to the Expiry Time the Corporation shall fix a record date for the
    issue of rights, options or warrants to all or substantially all of the holders of Subordinate Voting Shares under which such
    holders are entitled, during a period expiring not more than 45 days after the record date for such issue (“Rights
    Period”), to subscribe for or acquire Subordinate Voting Shares or securities exchangeable or exercisable for or
    convertible into Subordinate Voting Share at a price per Subordinate Voting Share to the Holder (or in the case of securities
    exchangeable, exercisable, or convertible into Subordinate Voting Shares, at an exchange, exercise, or conversion price per
    Subordinate Voting Share) of less than 95% of the Current Market Price for the Subordinate Voting Shares on such record date
    (any of such events being called a “Rights Offering”), then the number of Warrant Shares issuable upon
    the exercise of each Warrant shall be adjusted effective immediately after the record date for such Rights Period to a number
    determined by multiplying the number of Warrant Shares issuable upon the exercise thereof immediately prior to the end of
    the Rights Period by a fraction:

 

	 	 	(i)	the
    numerator of which shall be the number of Subordinate Voting Shares outstanding after giving effect to the Rights Offering;
    and
	 	 	 	 
	 	 	(ii)	the
    denominator of which shall be the aggregate of:

 

	 	 	(A)	the
    number of Subordinate Voting Shares outstanding as of the record date for the Rights Offering; and
	 	 	 	 
	 	 	(B)	a
    number determined by dividing (1) the product of the number of Subordinate Voting Shares issued or subscribed during the Rights
    Period upon the exercise of the rights, warrants, or options under the Rights Offering (including in the case of the issue
    or distribution of securities exchangeable or exercisable or convertible into Subordinate Voting Shares the number of Subordinate
    Voting Shares for or into which such securities may be exchanged, exercised, or converted) and the price at which such Subordinate
    Voting Shares are offered by (2) the Current Market Price of the Subordinate Voting Shares as of the record date for the Rights
    Offering

 

and
the Exercise Price shall be adjusted at the same time by multiplying the Exercise Price in effect on such record date by the inverse
of the aforesaid fraction. Any Subordinate Voting Shares owned by or held for the account of the Corporation shall be deemed not
to be outstanding for the purpose of any such calculation. To the extent that any rights, options or warrants so distributed are
not exercised, the number of Warrant Shares issuable upon the exercise of each Warrant shall be readjusted to the number of Subordinate
Voting Shares that would then be in effect based upon the shares, rights, options, or warrants actually distributed or based upon
the number of Subordinate Voting Shares or other securities actually delivered upon the exercise of the rights, options or warrants,
as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after the record date;

 

	 	(c)	if
    and whenever at any time from the date hereof and prior to the Expiry Time the Corporation shall fix a record date for the
    issue or distribute to all or to substantially all the holders of the Subordinate Voting Shares:

 

	 	 	(i)	securities
    of the Corporation of any class other than Subordinate Voting Shares or convertible securities, or rights, options or warrants;
	 	 	 	 
	 	 	(ii)	evidences
    of indebtedness of the Corporation; or
	 	 	 	 
	 	 	(iii)	any
    cash, property or other assets of the Corporation;

 

and
if such issuance or distribution does not constitute a Subordinate Voting Share Reorganization or a Rights Offering (any of such
non-excluded events being herein called a “Special Distribution”), the number of Warrant Shares issuable upon
the exercise of each Warrant shall be adjusted effective immediately after the record date at which the holders of affected Subordinate
Voting Shares are determined for purposes of the Special Distribution to a number determined by multiplying the number of Warrant
Shares issuable upon the exercise thereof in effect on such record date by a fraction:

 

    	 	 	 

    	 	- 5 -	 

    

 

	 	 	(iv)	the
    numerator of which shall be the number of Subordinate Voting Shares outstanding on such record date multiplied by the Current
    Market Price of the Subordinate Voting Shares on such record date; and
	 	 	 	 
	 	 	(v)	the
    denominator of which shall be:

 

	 	 	(A)	the
    product of the number of Subordinate Voting Shares outstanding on such record date and the Current Market Price of the Subordinate
    Voting Shares on such record date; less
	 	 	 	 
	 	 	(B)	the
    fair market value on such record date, as determined by the directors acting reasonably and in good faith (whose determination
    shall, absent manifest error, be conclusive), of such securities or property or other assets so issued or distributed in the
    Special Distribution;

 

and
the Exercise Price shall be adjusted immediately after such record date by multiplying the Exercise Price in effect on such record
date by the inverse of the aforesaid fraction. Any Subordinate Voting Shares owned by or held for the account of the Corporation
shall be deemed not to be outstanding for the purpose of any such calculation. To the extent that the distribution of other securities,
evidences of indebtedness or assets is not so made or any such securities so distributed that are exercisable for Subordinate
Voting Shares or convertible securities are not exercised, the number of Warrant Shares issuable upon the exercise of each Warrant
shall be readjusted to the number of Warrant Shares that would then be in effect based upon the other securities, evidences of
indebtedness or assets actually distributed or based upon the number of Subordinate Voting Shares or convertible securities actually
delivered upon the exercise of any such securities so distributed that are exercisable for Subordinate Voting Shares or convertible
securities, as the case may be, but subject to any other adjustment required hereunder by reason of any event arising after the
record date; and

 

	 	(d)	if
    and whenever at any time from the date hereof and prior to the Expiry Time there is a reclassification or redesignation of
    the Subordinate Voting Shares or a capital reorganization of the Corporation other than as described in Section 9(a) or a
    consolidation, amalgamation, arrangement or merger of the Corporation with or into any other body corporate, trust, partnership
    or other entity, or a sale, transfer, or conveyance of the property and assets of the Corporation as an entirety or substantially
    as an entirety (any such event being herein called a “Capital Reorganization”), the Holder is entitled
    to receive upon exercise in accordance with the terms and conditions hereof and shall accept, in lieu of the number of Warrant
    Shares issuable upon the exercise of the Warrants to which it was previously entitled, the kind and number of securities or
    property that the Holder would have been entitled to receive on such Capital Reorganization, if, on the effective date thereof,
    the Holder had been the registered holder of the number of Warrant Shares issuable upon the exercise of Warrants then held,
    subject to adjustment thereafter in accordance with provisions the same, as nearly as may be possible, as those contained
    in this Section 9. The Corporation shall not carry into effect any action requiring an adjustment pursuant to this Section
    9(d) unless all necessary steps have been taken so that the Holder is thereafter entitled to receive such kind and number
    of securities or property. The Corporation, its successor, or the purchasing body corporate, partnership, trust or other entity,
    as the case may be, shall, prior to or contemporaneously with any such reclassification, reorganization, consolidation, amalgamation,
    arrangement, merger, sale or conveyance, execute and deliver to the Holder a warrant certificate which provides, to the extent
    possible, for the application of the provisions set forth in this Warrant Certificate with respect to the rights and interests
    thereafter of the Holder to the end that the provisions set forth in this Warrant Certificate are correspondingly made applicable,
    as nearly as may reasonably be, with respect to any shares, other securities or property to which the Holder is entitled on
    the exercise of its acquisition rights thereafter.

 

    	 	 	 

    	 	- 6 -	 

    

 

	10.	The
    following rules and procedures shall be applicable to adjustments made pursuant to Section 9:

 

	 	(a)	where
    Section 9 requires that an adjustment becomes effective immediately after a record date or effective date, as the case may
    be for an event referred to herein, the Corporation may defer, until the occurrence of that event, issuing to the Holder exercising
    its acquisition rights after the record date or effective date, as the case may be and before the occurrence of that event
    the adjusted number of Warrant Shares, other securities or property issuable upon the exercise of the Warrants by reason of
    the adjustment required by that event. If the Corporation relies on this Section 10(a) to defer issuing an adjusted number
    of Warrant Shares, other securities or property to the Holder, the Holder has the right to receive any distributions made
    on the adjusted number of Warrant Shares (in connection with the Warrant Shares comprising the Warrants), other securities
    or property declared in favour of shareholders of record on and after the date of exercise or such later date as the Holder
    would, but for the provisions of this Section 10(a), have become the holder of record of the adjusted number of Warrant Shares,
    other securities or property pursuant to Section 9;
	 	 	 
	 	(b)	the
    adjustments provided for in Section 9 are cumulative and, subject to Section 10(c), shall apply (without duplication) to successive
    issues, subdivisions, combinations, consolidations, distributions and any other events that require adjustment under Section
    9. After any adjustment pursuant to Section 9, the term “Warrant Share” where used in this Warrant Certificate
    is interpreted to mean securities of any class or classes which, as a result of such adjustment and all prior adjustments
    pursuant to Section 9, the Holder is entitled to receive upon the exercise of its Warrant, and the number of Warrant Shares
    issuable upon any exercise made pursuant to a Warrant is interpreted to mean the number of Warrant Shares the Holder is entitled
    to receive, as a result of such adjustment and all prior adjustments pursuant to Section 9, upon the full exercise of a Warrant;
	 	 	 
	 	(c)	no
    adjustment in the Exercise Price shall be required unless such adjustment would result in a change of at least 1% in the prevailing
    Exercise Price and no adjustment shall be made in the number of Warrant Shares issuable upon exercise of this Warrant Certificate
    unless it would result in a change of at least one one-hundredth of a Warrant Share; provided, however, that any adjustments
    which, except for the provisions of this Section 10(c) would otherwise have been required to be made, shall be carried forward
    and taken into account in any subsequent adjustment. Notwithstanding any other provisions of Section 9, no adjustment to the
    Exercise Price shall be made which would result in an increase in the Exercise Price or a decreased in the number of Warrant
    Shares issuable upon exercise of the Warrants (except in respect of the Subordinate Voting Share Reorganization in Section
    9(a) or a Capital Reorganization in Section 9(d).
	 	 	 
	 	(d)	in
    the event of a question arising with respect to the adjustments provided for herein, that question shall be conclusively determined
    by auditors mutually agreed upon by the Corporation and the Holder who shall have access to all necessary records of the Corporation,
    and a determination by the auditors shall, absent manifest error, be binding upon the Corporation, the Holder and all other
    persons interested therein;
	 	 	 
	 	(e)	no
    adjustment in the number of Warrant Shares issuable upon the exercise of Warrants shall be made in respect of any event described
    in Section 9, other than the events referred to in paragraphs (i) and (ii) of Section 9(a) hereof, if the Holder is entitled
    to participate in such event on the same terms, mutatis mutandis, as if the Holder had exercised the Warrants prior
    to or on the effective date or record date of such event, subject in all cases to such stock exchange or other regulatory
    approval as may be required;
	 	 	 
	 	(f)	in
    the event that the Corporation after the date of issue of the Warrants shall take any action affecting the Subordinate Voting
    Shares, other than an action described in Section 9, which in the opinion of the directors of the Corporation, acting reasonably
    and in good faith, would materially affect the rights of the Holder, the number of Warrant Shares issuable upon exercise shall
    be adjusted in such manner, if any, and at such time, by action of the directors, in their sole discretion acting reasonably
    and in good faith, as they may determine to be equitable in the circumstances, but subject in all cases to such stock exchange
    or other regulatory approval as may be required. Failure of the taking of action by the directors so as to provide for an
    adjustment on or prior to the effective date of any action by the Corporation affecting the Subordinate Voting Shares shall
    be conclusive evidence that the board of directors of the Corporation has determined that it is equitable to make no adjustment
    in the circumstances;

 

    	 	 	 

    	 	- 7 -	 

    

 

	 	(g)	if
    the Corporation shall set a record date to determine the holders of the Subordinate Voting Shares for the purpose of entitling
    them to receive any dividend or distribution or any subscription or exercise rights and shall, thereafter and before the distribution
    to such shareholders of any such dividend, distribution or subscription or exercise rights, abandon its plan to pay or deliver
    such dividend, distribution or subscription or exercise rights, then no adjustment in the Exercise Price or in the number
    of Warrant Shares issuable upon the exercise of any Warrant shall be required by reason of the setting of such record date;
	 	 	 
	 	(h)	no
    adjustment in the number of Warrant Shares issuable upon the exercise of Warrants shall be made in respect of the issue of
    Subordinate Voting Shares pursuant to:

 

	 	 	(
    )	the
    exercise of the Warrants in accordance with this Warrant Certificate; or

 

	 	 	(ii)	any
    stock option, stock option plan or stock purchase plan in force at the date hereof for directors, officers, employees, advisers
    or consultants of the Corporation, as such option or plan is amended or superseded from time to time in accordance with the
    requirements of the principal Canadian stock exchange or over-the-counter market on which the Subordinate Voting Shares are
    then listed or quoted for trading and applicable securities laws, and such other stock option, stock option plan or stock
    purchase plan as may be adopted by the Corporation in accordance with the requirements of the principal Canadian stock exchange
    or over-the-counter market on which the Subordinate Voting Shares are then listed or quoted for trading and applicable securities
    laws;

 

and
any such issue shall be deemed not to be a Share Reorganization, a Rights Offering or a Special Distribution;

 

	 	(i)	in
    the absence of a resolution of the directors fixing a record date for a Special Distribution or Rights Offering, the Corporation
    shall be deemed to have fixed as the record date therefor the date on which the Special Distribution or Rights Offering is
    effected; and
	 	 	 
	 	(i)	as
    a condition precedent to the taking of any action which would require any adjustment in any of the subscription rights pursuant
    to this Warrant Certificate, including the Exercise Price and the number or class of Warrant Shares or other securities which
    are to be received upon the exercise thereof, the Corporation shall take any corporate action which may, in the reasonable
    opinion of counsel to the Corporation or the Holder, be necessary in order that the Corporation have unissued and reserved
    Subordinate Voting Shares in its authorized capital, and may validly and legally issue as fully paid and non-assessable all
    the Subordinate Voting Shares and/or other securities which the holder of such Warrant Certificate is entitled to receive
    on the full exercise thereof in accordance with the provisions hereof.

 

	11.	On
    the happening of each and every such event set out in Section 9, the applicable provisions of this Warrant Certificate shall,
    ipso facto, be deemed to be amended accordingly and the Corporation shall take all necessary action so as to comply
    with such provisions as so amended.
	 	 
	12.	At
    least 10 Business Days prior to the effective date or record date, as the case may be, of any event which requires or might
    require adjustment in any of the subscription rights pursuant to this Warrant Certificate, including the Exercise Price and
    the number of Warrant Shares which are issuable upon the exercise thereof, or such longer period of notice as the Corporation
    shall be required to provide holders of Subordinate Voting Shares in respect of any such event, the Corporation shall notify
    the Holder of the particulars of such event and, if determinable, the required adjustment and the computation of such adjustment.
    In case any adjustment for which such notice has been given is not then determinable, the Corporation shall promptly after
    such adjustment is determinable notify the Holder of the adjustment and the computation of such adjustment.

 

    	 	 	 

    	 	- 8 -	 

    

 

	13.	The
    Corporation shall not enter into any transaction whereby all or substantially all of its undertaking, property and assets
    would become the property of any other corporation (herein called a “successor corporation”) whether by
    way of reorganization, reconstruction, consolidation, amalgamation, merger, transfer, sale, disposition or otherwise, unless
    prior to or contemporaneously with the consummation of such transaction the Corporation and the successor corporation shall
    have executed such instruments and done such things as, in the opinion of counsel to the Holder, are necessary or advisable
    to establish that upon the consummation of such transaction:

 

	 	(a)	the
    successor corporation will have assumed all the covenants and obligations of the Corporation under this Warrant Certificate,
    and
	 	 	 
	 	(b)	this
    Warrant Certificate will be a valid and binding obligation of the successor corporation entitling the Holder, as against the
    successor corporation, to all the rights of the holder under this Warrant Certificate.

 

Whenever
the conditions of this Section 13 shall have been duly observed and performed, the successor corporation shall possess, and from
time to time may exercise, each and every right and power of the Corporation under this Warrant Certificate in the name of the
Corporation or otherwise and any act or proceeding by any provision hereof required to be done or performed by any director or
officer of the Corporation may be done and performed with like force and effect by the like directors or officers of the successor
corporation.

 

	14.	The
    Corporation shall maintain a register of holders in which shall be entered the names and addresses of the holders of the Warrants
    and of the number of Warrants held by them. Such register shall be open at all reasonable times for inspection by the Holder.
    The Corporation shall notify the Holder forthwith of any change of address of the principal office of the Corporation.
	 	 
	15.	Unless
    herein otherwise expressly provided, any notice to be given hereunder to the Holder shall be deemed to be validly given if
    such notice is given by personal delivery or registered mail to the attention of the Holder at its registered address recorded
    in the registers maintained by the Corporation. Any notice so given shall be deemed to be validly given, if delivered personally,
    on the day of delivery and if sent by post or other means, on the fifth Business Day next following the sending thereof. In
    determining under any provision hereof the date when notice of any event must be given, the date of giving notice shall be
    included and the date of the event shall be excluded.
	 	 
	16.	Subject
    as herein provided, all or any of the rights conferred upon the Holder by the terms hereof may be enforced by the Holder by
    appropriate legal proceedings.
	 	 
	17.	Warrant
    Certificates may be exchanged for certificates in any other denomination representing in the aggregate an equal number of
    Warrants as the number of Warrants represented by the Warrant Certificate(s) being exchanged. The Corporation shall sign all
    certificates necessary to carry out the exchanges contemplated herein. Any Warrant Certificates tendered for exchange shall
    be surrendered to the Corporation and cancelled.
	 	 
	18.	The
    Warrants are transferable in accordance with this Section 18, and the term “Holder” shall mean and include any
    permitted successor, transferee or assignee of the Warrants. The Warrants may be transferred by the Holder completing and
    delivering to the Corporation the transfer form attached hereto as Schedule “B”; provided that all such transfers
    are made in compliance with all applicable securities laws and no transfer shall require that the Corporation prepare and
    file a prospectus, registration statement or similar document or to be registered with or to file any report or notice with
    any governmental or regulatory authority or to register the Warrants or the Warrants Shares or to otherwise comply with any
    continuous disclosure obligations under the applicable securities laws of any jurisdiction outside of Canada or to make any
    filings or seek any approvals of any kind whatsoever from any regulatory authority of any kind whatsoever in any jurisdiction
    outside of Canada.
	 	 
	19.	This
    Warrant Certificate shall enure to the benefit of the Holder and the permitted successors and assignees thereof and shall
    be binding upon the Corporation and the successors thereof.

 

    	 	 	 

    	 	- 9 -	 

    

 

	20.	The
    Holder acknowledges that the Warrant Shares issuable upon exercise hereby may be offered, sold or otherwise transferred only
    in compliance with all applicable securities laws and stock exchange rules and policies.
	 	 
	21.	The
    Corporation will do, execute, acknowledge and deliver or cause to be done, executed, acknowledged and delivered, all other
    acts, deeds and assurances in law as may be reasonably required to effect the intentions and provisions of this certificate.
	 	 
	22.	Time
    shall be of the essence hereof.
	 	 
	23.	This
    Warrant Certificate shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal
    laws of Canada applicable therein.

 

[Remainder
of Page Intentionally Left Blank.]

 

    	 	 	 

    	 	 	 

    

 

IN
WITNESS WHEREOF the Corporation has caused this certificate representing the Warrants to be signed by a duly authorized officer
or director.

 

DATED
the ____ day of____________, 2019.

 

	 	HARVEST
    HEALTH & RECREATION INC.
	 	 	 
	 	By:	 
	 	 	Authorized
    Signing Officer

 

    	 	 	 

    	 	 	 

    

 

SCHEDULE
“A”

 

SUBSCRIPTION
NOTICE

 

TO:          HARVEST
HEALTH & RECREATION INC.

 

The
undersigned hereby exercises the right to acquire___________________________ Warrant Shares of Harvest Health &
Recreation Inc. (the “Corporation”) (or such number of other securities or property to which the Warrant
Certificate entitles the undersigned in lieu thereof or in addition thereto under the provisions of the Warrant Certificate)
and hereby delivers and tenders to the Corporation in immediately available funds $______________ in satisfaction of the
aggregate Exercise Price therefor.

 

(Please
check the ONE box applicable):

 

	 ~	A.	The
    undersigned holder hereby represents and warrants that it (i) at the time of exercise of the Warrant, is not in the United
    States; (ii) is not a “U.S. person” (“U.S. Person”), as defined in Regulation S under the United
    States Securities Act of 1933, as amended (the “U.S. Securities Act”); (iii) is not exercising the Warrant
    for the account or benefit of a person in the United States or a U.S. Person; and (iv) did not execute or deliver this Subscription
    Notice in the United States.
	 	 	 
	 ~	B.	The
    undersigned holder has delivered to the Corporation an opinion of counsel (which will not be sufficient unless it is from
    counsel of recognized standing and in form and substance reasonably satisfactory to the Corporation) to the effect that an
    exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws is available.

 

The
undersigned hereby irrevocably directs that the said Warrant Shares be issued and delivered as follows:

 

	Name(s)
    in Full	 	Address(es)	 	Number(s)
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

(Please
print in full the name in which certificates for Warrant Shares are to be issued. If no name is provided, certificates will be
issued in the name shown on the Warrant Certificate. If any of the securities are to be issued to a person or persons other than
the Holder, a form of transfer acceptable to the Corporation must be completed and the Holder must pay any and all exigible transfer
taxes or other government charges.)

 

DATED
this _____ day of____________________, 20_______.

 

	 	 
	 	Signature
    of Holder
	 	 
	 	 
	 	Name
    of Holder
	 	 
	 	 
	 	Name
    and Title of Signatory, if Holder is not an individual

 

    	 	A - 1	 

    	 	 	 

    

 

Notes:

 

Terms
used herein but not otherwise defined have the meanings ascribed thereto in the attached Warrant Certificate.

 

The
holder understands that unless Box A above is checked, the certificates representing the Warrant Shares shall bear the appropriate
legends as determined by legal counsel for the Corporation.

 

Unless
Box B above is checked and the legal opinion described therein is delivered to the Corporation, the Warrant Shares will not be
issued to any person who has set out an address in the United States nor shall any certificates representing Warrant Shares be
registered or delivered to any U.S. address.

 

If
Box B above is to be checked, the holder is encouraged to consult with the Corporation in advance to determine that the legal
opinion tendered in connection with exercise will be satisfactory in form and substance to the Corporation.

 

If
any Warrants represented by this Warrant Certificate are not being exercised, a new Warrant Certificate representing the unexercised
Warrants will be issued and delivered with the certificates representing the Warrant Shares.

 

    	 	A - 2	 

    	 	 	 

    

 

SCHEDULE
“B”

 

FORM
OF TRANSFER

 

FOR
VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto (include name and address of the transferee) Warrants
exercisable for subordinate voting shares of HARVEST HEALTH & RECREATION INC. (the “Corporation”)
registered in the name of the undersigned on the register of the Corporation maintained therefor, and hereby irrevocably appoints
the attorney of the undersigned to transfer the said securities on the books maintained by the Corporation with full power of
substitution.

 

DATED
this_________ day of_________________ , 20 .

 

Signature
of Transferor guaranteed by:

 

	 	 	 
	Name
    of Bank or Trust Company	 	Signature
    of Transferor
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	Address
    of Transferor

 

Notes:

 

The
name of the transferor must correspond with the name written upon the face of the Warrant Certificate in every particular without
any changes whatsoever.

 

The
signature of the Transferor on the Transfer Form must be guaranteed by an authorized officer of a chartered bank, trust company
or an investment dealer who is a member of a recognized stock exchange, and the Holder must pay any applicable transfer taxes
or fees.

 

If
the Transfer Form is signed by a trustee, exercise, administrator, curator, guardian, attorney, officer of a corporation or any
person acting in a judiciary or representative capacity, the Warrant Certificate must be accompanied by evidence of authority
to sign satisfactory to the Corporation.

 

    	 	B - 1	 

    	 	 	 

    

 

SCHEDULE
“D”

 

Form
of Draw-Down Notice

 

	To:	[***]
    (the “Investor”)
	 	 
	Re:	Draw-Down
    Notice under Investment Agreement dated May ___, 2019 between the Investor and the
undersigned (the “Investment Agreement”)

 

Capitalized
terms not otherwise defined in this Draw-Down Notice shall have the meanings given to such terms in the Investment Agreement.

 

The
undersigned, Harvest Health & Recreation Inc. (the “Company”), hereby tenders to the Investor this
Draw-Down Notice which, upon acceptance by the Investor, will constitute an irrevocable agreement of the Company to offer,
issue and sell to the Investor, and of the Investor to purchase from the Company, on a private placement basis, Convertible
Debentures for aggregate gross proceeds of US$______________________ as contemplated by the Investment Agreement, all on the
terms and subject to the conditions set out in this Investment Agreement.

 

The
Closing Date for completion of such Tranche will be five Business Days’ following the acceptance date of this Draw-Down
Notice and the issuance of the Press Release in respect of the proposed Tranche of Convertible Debentures or such later date as
may be agreed between the parties.

 

Please
confirm all conditions in your favour have been satisfied or waived in order to proceed to closing of such Tranche of Convertible
Debentures by signing the acknowledgement below.

 

Dated
this__________ day of_______________ , 201__.

 

	 	HARVEST
    HEALTH & RECREATION, INC.
	 	 	 
	 	By:	 
	 	 	Authorized
    Signing Officer

 

Each
of the undersigned confirms that all conditions have been met to its satisfaction and requests the Company to proceed to (i)
file an amended Form 9 (or such other form or procedure prescribed by the Exchange) to seek price protection, if necessary;
(ii) issue a press release in respect of the issuance of Convertible Debentures to which this Draw-Down Notice relates; and
(iii) seek Exchange approval, if necessary, for such proposed Tranche of Convertible Debentures in the amount of
$_____________________ .

 

Dated
this__________ day of , 201__.

 

	 	[***],
	 	by
    its general partner [***]
	 	 	         
	 	By:
    	 
	 	Name:
    	 
	 	Title:	 

 

    	 	D - 1	 

    	 	 	 

    

 

SCHEDULE
“E”

 

Material
Subsidiaries

 

Arizona

 

	Entity	 	Ownership
	Harvest
    Dispensaries, Cultivations & Production Facilities, LLC (“Harvest DCP”)	 	Harvest
    Enterprises, Inc. – 100%
	Abedon
    Saiz, LLC	 	Harvest
    DCP - 100%
	BRLS
    Properties I LLC	 	Harvest
    DCP - 100%
	BRLS
    Properties II LLC	 	Harvest
    DCP - 100%
	Byers
    Dispensary, Inc.	 	Harvest
    DCP - 100%
	Dream
    Steam LLC	 	Harvest
                                         DCP - 75%

        Harvest
        Enterprises, Inc. - 25%

	Freckled
    Trout LLC	 	Harvest
    DCP - 100%
	Harvest
    Arkansas Holding LLC	 	Harvest
                                         DCP – 90.2%

        Harvest
        Enterprises, Inc. – 9.8%

	High
    Desert Healing, LLC	 	Harvest
    DCP - 100%
	Harvest
    Mass Holding I, LLC	 	AZ-DEL Holdings, LLC – 7.27%

                                                         Harvest Enterprises, Inc. – 92.73%

	Harvest
    Michigan Holding, LLC	 	Harvest
                                         DCP – 7.25%

        Harvest
        Enterprises, Inc. – 92.75%

	Nature
    Med, Inc.	 	Harvest
    DCP - 100%
	Pahana,
    Inc.	 	Harvest
    DCP - 100%
	Patient
    Care Center 301, Inc.	 	Harvest
    DCP - 100%
	Randy
    Taylor Consulting LLC	 	Harvest
    DCP - 100%
	Sherri
    Dunn, LLC	 	Harvest
    DCP - 100%
	Svaccha,
    LLC	 	Harvest
    DCP - 100%
	Verde
    Dispensary, Inc.	 	Harvest
    DCP - 100%

 

Arkansas

 

	Entity	 	Ownership
	Natural
    State Capital, LLC	 	Harvest Arkansas Holding, LLC – 51%

                                                         Harvest Enterprises, Inc. – 49%

	Natural
    State Wellness Investments, LLC	 	Harvest Arkansas Holding, LLC – 51%

                                                         Zeta X, LLC – 49%

	Natural
    State Wellness Dispensary, LLC	 	Natural
    State Wellness Investments, LLC – 1%
	Natural
    State Wellness Enterprises, LLC	 	Natural
    State Capital, LLC – 1%

 

    	 	 	 

    	 	E - 2	 

    

 

California

 

	Entity	 	Ownership
	Harvest
    of California, LLC	 	AZ-DEL Holdings, LLC – 7.25%

                                                         Harvest Enterprises, Inc. – 92.75%

	Harvest
    of Culver City, LLC	 	Harvest
    of California, LLC - 100%
	Harvest
    of Hesperia, LLC	 	Harvest
                                         of California - 55%

        Route
        66 River Holdings Inc.– 25%

        247X
        Group Limited – 20%

	Harvest
    of Lake Elsinore, LLC	 	Harvest of California - 75%

                                                         Element 7, LLC – 25%

	Harvest
    of Merced, LLC	 	Harvest
                                         of California, LLC - 83%

        Harvest
        Enterprises, Inc. – 5%

        Edgar
        Contreras – 5%

        Anna
        Blazevich – 5%

        Brian
        Vicente – 2%

	Harvest
    of Moreno Valley, LLC	 	Harvest of California, LLC – 90%

                                                         Harvest Enterprises, Inc. – 5%

                                                         Regina Hayes – 5%

	Harvest
    of Napa, Inc.	 	Harvest of California, LLC – 65%

                                                         Elliott Taylor – 35%

	Harvest
    of San Bernardino, LLC	 	Harvest
                                         of California, LLC – 80%

        Steve
        Mead – 5%

        Jason
        Gaston – 15%

	Harvest
    of Santa Monica, LLC	 	Harvest
                                         of California, LLC – 71.5%

        Sam
        Dabass – 10%

        TJ
        Montemer – 3%

        West
        Poletti – 3%

        Blue
        Summer Partners, LLC – 7.5%

        Erika
        Waltz – 5%

	Holdings
    of Harvest CA, LLC	 	Harvest
    of California, LLC – 100%
	Harvest
    of Union City, LLC	 	Harvest of California, LLC – 97%

                                                         Kialia Nialia 3%

	Hyperion
    Healing, LLC	 	Harvest
                                         of California, LLC – 60%

        Annie
        Bishop- 20.4%

        Danny Shu- 19.6%

 

    	 	 	 

    	 	E - 3	 

    

 

Colorado

 

	Entity	 	Ownership
	CBx
    Enterprises, LLC	 	Harvest
    Enterprises, Inc. – 100%
	CBx
    Sciences, LLC	 	CBx
    Enterprises, LLC – 100%

 

Delaware

 

	Entity	 	Ownership
	AZ-DEL
    Holdings, LLC	 	Harvest
    DCP – 100%
	Harvest
    Enterprises, Inc.	 	Harvest
    Health & Recreation Inc. – 100%
	Harvest
    FINCO, Inc.	 	Harvest
    Health & Recreation Inc. – 100%
	SMPB
    Management, LLC	 	Harvest
    DCP of Pennsylvania, LLC – 85% 

Harvest Enterprises, Inc. – 15%
	AINA
    We Would LLC	 	Harvest
    Enterprises, Inc. – 25%
	Vulcan-Harvest,
    LLC	 	Harvest
    DCP of Nevada, LLC – 51% 

Vulcan Enterprises US – 49%

 

Florida

 

	Entity	 	Ownership
	Harvest
    DCP of Florida, LLC	 	Harvest
                                         DCP – 10%

        Harvest
        Enterprises, Inc. – 90%

	San
    Felasco Nurseries, Inc.	 	Harvest
    Enterprises, Inc. – 100%
	AINA-WW
    Hollywood LLC	 	AINA
    We Would LLC – 100%
	AINA-CNBS
    Holdings LLC	 	Harvest
    Enterprises, Inc – 25%

 

Maryland

 

	Entity	 	Ownership
	Harvest
    DCP of Maryland, LLC	 	Harvest
                                         DCP – 42.8%

        Harvest
        Enterprises, Inc. – 52.2%

        Town
        of Hancock – 5%

	Harvest
    of Maryland Cultivation, LLC	 	Harvest
    DCP of Maryland, LLC – 100%
	Harvest
    of Maryland Dispensary, LLC	 	Harvest
    DCP of Maryland, LLC – 100%
	Harvest
    of Maryland Production, LLC	 	Harvest
    DCP of Maryland, LLC – 100%

 

    	 	 	 

    	 	E - 4	 

    

 

Massachusetts

 

	Entity	 	Ownership
	Gogriz,
    LLC	 	Harvest
    Mass Holding I, LLC – 100%
	Suns
    Mass, Inc.	 	Harvest
    Mass Holding I, LLC – 100%
	Suns
    Mass II, LLC	 	Harvest
    Mass Holding I, LLC – 100%
	Suns
    Mass III, LLC	 	Harvest
    Mass Holding I, LLC – 100%

 

Michigan

 

	Entity	 	Ownership
	Harvest
    Delta of Michigan, LLC	 	Harvest
    Michigan Holding, LLC – 50% 

Harvest Enterprises, Inc. – 50%

 

Nevada

 

	Entity	 	Ownership
	BRLS
    NV Properties V, LLC	 	Harvest
    DCP of Nevada, LLC – 100%
	Harvest
    DCP of Nevada, LLC	 	Harvest
    DCP – 100%
	Harvest
    of Nevada LLC	 	Harvest
                                         DCP of Nevada, LLC – 94% (Held by Steve White on behalf of the Company)

        Gary
        Pinkston – 5%

        Felicia
        Frierson – 1%

	CBx
    Essentials, LLC	 	CBx
    Enterprises, LLC – 100%

 

New
Jersey

 

	Entity	 	Ownership
	Harvest
    DCP of New Jersey, LLC	 	Harvest
    DCP – 100%

 

North
Dakota

 

	Entity	 	Ownership
	Harvest
    DCP Holding of North Dakota, LLC	 	Harvest
    DCP – 100%
	Harvest
    of Williston, LLC  (HOFW, LLC)	 	Harvest
    DCP Holding of North Dakota, LLC – 100% (Held by Steve White on behalf of the Company)
	Harvest
    of Bismarck-Mandan, LLC (HOFB, LLC)	 	Harvest
                                         DCP Holding of North Dakota, LLC – 95% (Held by Steve White on behalf of the Company)

        Gary
        Pinkston – 5%

 

    	 	 	 

    	 	E - 5	 

    

 

Ohio

 

	Entity	 	Ownership
	Harvest
    of Ohio, LLC	 	Ariane Kirkpatrick – 51%

                                                         Steve White – 49%

	BRLS
    OH Properties III, LLC	 	Harvest
    DCP of Ohio, LLC – 100%
	Harvest
    DCP of Ohio, LLC	 	Harvest
    DCP – 100%
	Harvest
    Grows Management, LLC	 	Harvest DCP of Ohio, LLC – 94.75%

                                                         Harvest Enterprises, Inc. – 5.25%

	Harvest
    Grows Properties, LLC	 	Harvest
    DCP of Ohio, LLC – 100%
	Harvest
    of Ohio Management, LLC	 	Harvest DCP of Ohio, LLC – 94.75%

                                                         Harvest Enterprises, Inc. – 5.25%

 

Pennsylvania

 

	Entity	 	Ownership
	Harvest
    DCP of Pennsylvania, LLC	 	Harvest
    DCP – 100%
	Harvest
    of PA Management, LLC	 	Harvest
                                         DCP of Pennsylvania, LLC – 81%

        Harvest
        Enterprises, Inc. – 10%

        Valetta
        Stewart – 1.5%

        Gary
        Pinkston – 5%

        Bronstein
        Consulting, LLC – 2.5%

	SMPB
    Retail, LLC	 	Alicia
    Didonato – 100%
	Harvest
    of Southeast PA, LLC	 	Valetta
    Stewart – 51%

Steve White 49%
	Harvest
    of Northeast PA, LLC	 	Valetta
    Stewart – 51%

Steve White 49%
	Harvest
    of South Central PA, LLC	 	Valetta
    Stewart – 51%

Steve White 49%
	Harvest
    of North Central PA, LLC	 	Valetta
    Stewart – 51%

Steve White 49%
	Harvest
    of Southwest PA, LLC	 	Valetta
    Stewart – 51%

Steve White 49%
	Harvest
    of Northwest PA, LLC	 	Valetta
    Stewart – 51%

Steve White 49%

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